An Act to extend and clarify laws relating to the provision and improvement of housing, the elimination and prevention of slums, the conservation and development of urban communities, the financing of vitally needed public, works, and for other purposes.
PL 84-345 (S.2126), enacted 08/11/1955

69 S T A T . ] 
PUBLIC LAW 345-AUG. 11, 1955 
635 
Public Law 345 
CHAPTER 783 
AN ACT 
To extend and clarify laws relating to the provision and improvement of housing, 
the elimination and prevention of slums, the conservation and development 
of urban communities, the financing of vitally needed public works, and for 
other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
nited States of America in Congress assembU ' 
be cited as the "Housing Amendments of 1955". 
August 11, 1955 
[S. 2126] 
United States ofAmerica 
in Congress assembled, That this Act may mims^if^iossf"**' 
TITLE I—GENERAL HOUSING AMENDMENTS 
48 Stat. 1250. 
12 u s e 1710. 
12 u s e 1713. 
HOME IMPROVEMENT LOANS 
SEC. 101. Section 2 (a) of the National Housing Act, as amended, 
^*"'«' P- 2^** 
is hereby amended by striking "August 1, 1955" and inserting "Sep-
tember 30, 1956". 
MORTGAGE INSURANCE 
SEC, 102. (a) Section 204 (f) of said Act, as amended, is hereby 
amended by adding the following paragraph at the end thereof: 
"Notwithstanding any other provisions of this section, the Com-
missioner is authorized, with respect to mortgages insured pursuant 
to commitments for insurance issued after the date of enactment of 
the Housing Amendments of 1955, and, with the consent of the mort-
gagee or mortgagor, as the case may be, with respect to mortgages 
insured pursuant to commitments issued prior to such date, to effect the 
settlement of certificates of claim and refunds to mortgagors at any 
time after the sale or transfer of title to the property conveyed to the 
Commissioner under this section and without awaiting the final liqui-
dation of such property for the purpose of determining the net amount 
to be realized therefrom." 
(b) Section 207 of said Act, as amended, is hereby amended as 
follows: 
(1) In subsection (a) (1) (B), after the words "residential use", 
insert "or upon which there is located or to be constructed facilities 
for trailer coach mobile dwellings"; 
(2) In subsection (a) (6), before the period, insert the following: 
"or space in a trailer court or park properly arranged and equipped 
to accommodate trailer coach mobile dwellings"; 
(3) In the first proviso of subsection (c) (2), after the words "of 
this section", insert "or a mortgage on a trailer court or park"; 
(4) Before the colon immediately preceding the proviso in sub-
section (c) (3), insert "or not to exceed $1,000 per space or $300,000 
per mortgage for trailer courts or parks"; and 
(5) In the last sentence of subsection (c), after the word "project", 
insert "may include eight or more family units and". 
(c) Sections 207 (c) (1), 213 (b) (1), 213 (c), 220 (d) (3) (B), 
and 221 (d) (3) of said Act, as amended, are hereby amended by strik-
ing out "$5,000,000" and inserting in lieu thereof "$12,500,000". 
(d) Section 213 (b) (2) of said Act, as amended, is amended by 
striking out "the estimated value" both times it appears and inserting 
in lieu thereof "the amount which the Commissioner estimates will 
be the replacement cost". 
(e) Section 213 of said Act, as amended, is hereby amended by add-
ing, in the last sentence of subsection (d), after the words "subsection 
(a) of this section", the words "may include eight or more family 
units and". 
68Stat. 596. 599. 
12 u s e 
171Se, 
1715k, 1715/. 
636 
Ante, p. i 1. 
12 u s e 1715k. 
PUBLIC L,AW 345-AUG. 11, 1955 
[69 ST A T . 
12 u s e 171Se. 
68 Stat. 607. 
12 u s e 1715r. 
12 u s e 1715/. 
68 Stat. 605. 
12 u s e 1715n. 
68 Stat. 616. 
12 u s e 1720. 
Ad v a n e e com-
mitment contracts. 
12 u s e 1715e. 
(f) Section 217 of said Act, as amended, is hereby amended by strik-
ing "July 1, 1954" and inserting "July 1, 1955", and by striking 
"$3,500,000,000" and inserting "$4,000,000,000". 
(g) Section 220 (d) (3) of such Act, as amended, is amended as 
follows: 
(1) In subparagraph (A) by striking out "the appraised value" 
and inserting in lieu thereof "the amount which the Commissioner 
estimates will be the replacement cost", and by striking out "such 
value" and inserting in lieu thereof "such cost", and by adding the 
following proviso before the last semicolon of said subparagraph (A) : 
": ATUI provided further, That in the case of properties other than 
new construction, the foregoing limitations upon the amount of the 
mortgage shall be based upon appraised value rather than upon the 
Commissioner's estimate of the replacement cost"; and 
(2) In subparagraph (B) (ii) by striking out "the estimated value" 
and inserting in lieu thereof "the amount which the Commissioner 
estimates will be the replacement cost", and by striking out "value" 
and inserting in lieu thereof "replacement cost", and by adding the 
following proviso before the semicolon in said subparagraph (B) (ii) : 
": Provided, That in the case of properties other than new construc-
tion, the foregoing limitation upon the amount of the mortgage shall 
be based upon appraised value rather than upon the Commissioner's 
estimate of the replacement cost". 
(h) In the performance of, and with respect to, the functions, 
powers, and duties vested in him by section 213 of the National Hous-
ing Act, as amended, the Commissioner, notwithstanding the provi-
sions of any other law, shall appoint a Special Assistant for Coopera-
tive Housing, and provide the Special Assistant with adequate staff, 
whose sole responsibility will be to expedite operations under such sec-
tion and to eliminate obstacles to the full utilization of such section 
under the direction and supervision of the Commissioner. 
The per-
son so appointed shall be fully sympathetic with the purposes of such 
section. 
(i) Clause (a) of the second sentence of section 22Y of said Act, as 
amended, is hereby amended by striking "under section 221" and in-
serting "under section 221 if the mortgage meets the requirements of 
paragraph (3) of subsection (d) thereof". 
(j) Section 221 (a) of said Act, as amended, is amended as follows: 
(1) By inserting after the words "in order to assist in relocating 
families" the following: "from urban renewal areas and in relocating 
families"; 
(2) By striking out the words "to be so displaced" in the first pro-
viso of the second sentence; 
(3) By striking out the words "to be so displaced and" and inserting 
"referred to above" in the second proviso of the second sentence. 
(k) Section 223 (a) of said Act, as amended, is amended by striking 
out "section 203 or section 207" each time it appears and inserting in 
lieu thereof "section 203, 207, or 213". 
FEDERAL NATIONAL MORTGAGE ASSOCIATION 
SEC. 103. Section 305 of said Act, as amended, is amended by adding 
at the end thereof the following: 
"(e) Notwithstanding any other provision of this Act, the Asso-
ciation is authorized to enter into advance commitment contracts which 
do not exceed $50,000,000 outstanding at any one time, if such commit-
ments relate to mortgages wdth respect to which the Federal Housing 
Commissioner shall hav^ issued pursuant to section 213 either a com-
mitment to insure or a statement of eligibility; but not more than 
69 S T A T . ] 
PUBLIC LAW 345-,AUG. 11, 1955 
637 
$5,000,000 of such authorization shall be available for such commit-
ments in any one State." 
CERTIFICATES OF CLAIM 
SEC. 104. Section 604 (f) of said Act, as amended, is hereby amended 
^s stat. eo^^^ 
by adding the following paragraph at the end thereof: 
"Notwithstanding any other provisions of this section, the Commis-
sioner is authorized, with the consent of the mortgagee or mortgagor, as 
the case may be, to effect the settlement of certificates of claim and 
refunds at any time after the sale or transfer of title to the property 
conveyed to the Commissioner under this section and without awaiting 
the final liquidation of such property for the purpose of determining 
the net amount to be realized therefrom." 
TERMINATION OF TITLE IX OF T H E NATIONAL HOUSING ACT 
SEC. 105. The second sentence of section 104 of the Defense Housing 
and Community Facilities and Services Act of 1951, as amended, is 
^^ ^^^- i^gi^, 
hereby amended by striking in clause (a) thereof "designate here-
under" and inserting "designate hereunder or (iii) pursuant to a com-
mitment to insure issued pursuant to the preceding clause (ii)". 
SLUM CLEARANCE AND URBAN RENEWAL 
SEC. 106. (a) Section 103 (b) of the Housing Act of 1949, as 
esstat. 4i6. 
amended, is hereby amended by striking "$100,000,000, which limit 
*^ "^^ ''*"' 
shall be increased by further amounts of $1()0,000,000 on July 1 
in each of the years 1950, 1951, 1952, and 1953, respectively: Pro-
vided, That (subject to the total authorization of not to exceed 
$500,000,000)" and inserting "$500,000,000, which limit shall be 
increased by further amounts of $200,000,000 on July 1 in each of the 
years 1955 and 1956, respectively: Pro'vided, That". 
(b) Section 106 (e) of said Act, as amended, is hereby amended by 
67 stat. 127. 
striking "$35,000,000" and inserting "$70,000,000"._ 
(c) Section 110 (c) of said Act, as amended, is hereby amended 
^^ sut_. 4^0^^ 
by inserting between the first and second sentences thereof the fol-
lowing sentence: "Where land within the purview of subparagraph 
(1) (ii) or (1) (iii) hereof (whether it be predominantly residential 
or nonresidential in character) is to be redeveloped for predominantly 
nonresidential uses, loans and advances under this title may be 
extended therefor if the governing body of the local public agency 
determines that such redevelopment for predominantly nonresidential 
uses is necessary and appropriate to facilitate the proper growth 
and development of the community in accordance with sound planning 
standards and local community objectives and to afford maximum 
opportunity for the redevelopment of the project area by private 
enterprise: Pro'vided, That loans and outstanding advances to any 
local public agency pursuant to the authorization of this sentence 
shall not exceed 2i/^ per centum of the estimated gross project costs 
of the projects undertaken under other contracts with such local 
public agency pursuant to this title." 
SEC. 107. The Territorial Enabling Act of 1950 (64 Stat. 344) 
48 use48onote, 
is hereby amended— 
(1) by inserting "urban renewal," after "urban redevelop-
ment " m the title" 
(2) by inserting ", AND URBAN 
RENEWAL" 
after 
"REDEVELOPMENT" in the heading of title I ; 
(3) by inserting "and urban renewal projects" after the term 
"urban redevelopment projects" in each place where that term 
appears in title I ; 
48 u s e 
1 4 0 8 , 
1408b. 
638 
PUBLIC LAW 34&-AUG. 11, 1955 
[69 STAT. 
(4) by inserting "URBAN RENEWAL," after 
"REDE-
VELOPMENT," in the heading of title I I I ; 
(5) by inserting "urban renewal," after "urban redevelop-
ment," in sections 301 and 303; 
(6) by inserting'"or urban renewal" after "urban redevelop-
48 use 1408c. 
ment" in section 304; 
^ « use480,72i, 
(7) by inserting "as amended," after "(Public Law 171, Eighty-
first Congress)," in sections 101, 301, and 304; 
(8) by inserting "as amended," after "Housing Act of 1949," 
in the clause numl^red " (1)" in section 304; and 
(9) by inserting ", as amended," after "this Act" in sections 
101, 301, and 304. 
PUBLIC HOUSING 
SEC. 108. (a) Section 101 (c) of title I of the Housing Act of 
42 usi:' M"I. 
1949, as amended, is amended by striking out "or for annual contri-
butions or capital grants pursuant to the United States Housing Act 
of 1937, as amended, for any project or projects not constructed or 
covered by a contract for annual contributions prior to the effective 
date of the Housing Act of 1954,". 
(b) Subsection (i) of section 10 of the United States Housing 
42 use uio. 
^ 
^^ 1937, as amended, is hereby amended to read as follows: 
"(i) Notwithstanding any other provisions of law the Authority 
may enter into new contracts for loans and annual contributions for 
not more than forty-five thousand additional dwelling units during 
the period from the date of enactment of the Housing Amendments 
of 1955 through July 31, 1956, and may enter into only such new con-
tracts for preliminary loans in respect thereto as are consistent with 
the number of dwelling units for which contracts for annual contri-
butions may be entered into hereunder: Provided, That no new con-
tracts for loans and annual contributions for additional dwelling units 
in excess of the number authorized in this sentence shall be entered 
into unless authorized by the Congress." 
e.^liT^*""''"'^' 
(^) Notwithstanding the provisions of any other law, the Housing 
and Home Finance Administrator is authorized to sell and convey 
all right, title, and interest of the United States (including any off-
site easements) at fair market value as determined by him, in and to 
war housing project CONN-6028, known as Welles Village, contain-
ing one hundred and ninety-nine dwelling units on approximately 
thirty-four and one-half acres of land in Glastonbury, Connecticut, 
to the Housing Authority of the town of Glastonbury, Connecticut, 
subject to the approval of the legislative body of the town of Glaston-
bury, for use in providing moderate rental housing. Any sale pur-
suant to this section shall be on such terms and conditions as the 
A.dministrator shall determine: Provided, That full payment to the 
United States shall be required within a period of not to exceed thirty 
years with interest on the unpaid balance at not to exceed 5 per centum 
per annum: Provided further, That the provisions of this subsection 
shall be effective only during the period ending 12 months after the 
date of approval of this Act. 
(d) The Act entitled "An Act to expedite the provision of housing 
in connection with national defense, and for other purposes", approved 
October 14, 1940, as amended, is hereby amended by amending the 
68 Stat. 644. 
last paragraph of section 605 (a) to read as follows: 
1585. 
j^-j-^ ^^^ ^.^y .^^ which, on March 1, 1953, there were more than 
ten thousand temporary housing units held by the United States 
of America, or any two contiguous cities in one of which there were 
on such date more than ten thousand temporary housing units so 
held, the Administrator may acquire, by purchase or condemnation. 
69 STAT.] 
PUBLIC LAW 345-AUG. 11, 1955 
639 
a fee simple title to any or all lands in which the Administrator 
holds a leasehold interest, or other interest less than a fee simple, 
acquired by the Federal Government for national defense or war 
housing or for veteran's housing where (1) the Administrator finds 
that the acquisition by him of a fee simple title in the land will tend 
to expedite the orderly disposal or removal of temporary housing 
under his jurisdiction by facilitating the availability of improved 
sites for privately owned housing needed to replace such temporary 
housing, and will tend to expedite the transition of the city from a 
war-affected community containing, as of said date, a large number 
of temporary houses to a community having additional permanent, 
well-planned, residential neighborhoods, (2) the local governing 
body of the city makes a like finding and requests the Administrator 
to acquire such title to the land, and (3) the city has furnished as-
surances satisfactory to the Administrator that no individual who 
is employed by, or is an official of, the government of the city in 
which the land is located, or any agency thereof, shall be permitted, 
directly or indirectly, to have any financial interest in the purchase 
or redevelopment of such land: Provided^ That such acquisitions by 
the Administrator pursuant to this sentence shall be limited to not 
exceeding four hundred and twenty-five acres of land in the gen-
eral area in which approximately one thousand five hundred units 
of temporary housing held by the United States of America were 
unoccupied on said date: And provided further^ That funds for such 
acquisition by the Administrator, which are authorized, pursuant to 
subsection (c) of this section and title II of the Independent Offices 
Appropriation Act, 1955, to be expended from the revolving fund 
established by that title under the heading "Housing and Home 
Finance Agency Office of the Administrator, revolving fund", shall 
,f u^c noig-s. 
be taken into consideration, to the extent that they are needed, in 
making any determination pursuant to the second proviso under 
that heading. 
All or any part of any land so acquired by the Ad-
ministrator may, during the five year period following the date of 
its acquisition, be sold by the Administrator, through negotiated 
sale, to such city or any local public agency where (1) the city or 
local public agency has represented to the Administrator that it is 
duly authorized under State law to purchase and resell such laud, 
that such land will be made available to private enterprise for de-
velopment in accordance with local zoning and other laws, and that 
the aggregate of such land and any other land in the same city pre-
viously sold under the authority of this paragraph to the city or a 
local public agency will be developed for predominantly residential 
use, and (2) the city or local public agency has agreed to pay the 
fair market value of the land as determined by the Administrator, 
after giving consideration, among other relevant information, to the 
cost to the Federal Government of acquiring the fee simple title and 
of holding the land pending sale (including estimated amounts to 
cover legal and overhead expenses of such acquisition and to cover 
interest costs to the Federal Government of monies invested in the 
land pending sale). Any such negotiated sale of land to the city 
or a local public agency shall be made upon terms which require 
(1) that the city or public agency shall pay in cash at least one 
third of the price of the land upon its conveyance and the entire 
price within one year after its conveyance and (2) that any portion 
of the entire price not paid upon such conveyance shall be repre-
sented by an indebtedness which shall bear interest on outstanding 
balances at a rate of 4 per centum per annum and which shall be 
secured by a first mortgage lien upon the land or such portion of 
6 ^ 
PUBLIC LAW 345-AUG. 11, 1955 
[69 STAT. 
the land as the Administrator deems adequate to protect the finan-
cial interest of the Federal Government. 
The Administrator may, 
at any time that he deems it to be in the public interest to do so, 
dispose, under authority of other provisions of this Act, of any laud 
acquired by him pursuant to this paragraph. 
Any land acquired 
by the Administrator pursuant to this paragraph which has not been 
disposed of within five years after its acquisition shall be disposed 
of by him as expeditiously as possible in the public interest in ac-
cordance with other authority contained in this Act. 
Notwithstand-
ing the provisions of section 306 of this Act or any other provisions 
of law, no payments in lieu of taxes shall be made for any tax year 
beginning subsequent to the^date of the acquisition of title to the 
property by the Administrator." 
HOME LOAN BANK BOARD 
SEC. 109. (a) The Federal Home Loan Bank Act, as amended, is 
hereby amended— 
1
2 use H^26(i). 
(1) ^y striking the first sentence of section 6 (i) and inserting: 
"Any member other than a Federal savings and loan association 
may withdraw from membership in a Federal Home Loan Bank 
six months after filing wdth the board written notice of intention 
so to do, and the board may, after hearing, remove any member 
from membership, or deprive any nonmember borrower of the 
privilege of obtaining further advances, if, in the opinion of the 
board, such member or nonmember borrower (i) has failed to 
comply with any provision of this Act or regulation of the board 
made pursuant thereto; (ii) is insolvent: Provided^ That any 
member of a bank which is a building and loan association, savings 
and loan association, cooperative bank, or homestead association 
shall be deemed insolvent if the assets of such member are less than 
its obligations to its creditors and others, including the holders of 
its withdrawable accounts; or (iii) has a management or home-
financing policy of a character inconsistent with sound and eco-
nomical home financing or with the purposes of this Act."; 
12 use* \A2h») 
(^^ ^^ striking the period at the end of section 7 (a) and insert-
ing a colon and the following: ''''Provided^ That the board may by 
regulation increase the number of elective directors of any Federal 
Home Loan Bank having a district which includes five or more 
States to a number not exceeding twice the number of States com-
prising such district, but such additional elective directors shall be 
apportioned as nearly as may be practicable in the same manner 
and order as is provided for the apportionment of elective direc-
tors under subsections (c) and (d) hereof: ProwWec?/wr^Aer, That 
there shall be not less than one elective director from any of the 
States nor more than three elective directors from any of the 
States in any district referred to in the preceding proviso and in 
no event shall the total number of elective directors in any one 
district exceed eleven. The term 'States' as used in the preceding 
provisos shall mean the States of the Union and the District of 
Columbia."; 
I2USC*M|7. 
(^) ^y inserting " ( a ) " after the section number in section 17 
and adding at the end thereof a new subsection (b) as follows: 
Lc^n*BaJik BoMd? 
"(b) The Home Loan Bank Board which w^as, pursuant to Reor-
12 ^u^s0^^143 7 ganization Plan Numbered 3 of 1947, established and made a con-
note, 
stituent agency of the Housing and Home Finance Agency shall, from 
the effective date of the Housing Amendments of 1955, cease to be 
such a constituent agency and shall be an independent agency (includ-
ing the Federal Savings and Loan Insurance Corporation) in the exec-
68 Stat, 272. 
R e p o r t to Con-
gress. 
69 STAT.] 
PUBLIC LAW 345-AUG. U , 1955 
641 
utive branch of the Government: Provided^ That the functions vested 
in the Chairman of said board under clause (2) of the last sentence 
of subsection (b) of section 2 of said reorganization plan are hereby 
transferred to said board. 
Notwithstanding any other provision of 
law, said board, the Chairman thereof except as herein otherwise pro-
vided, and the Federal Savings and Loan Insurance Corporation, 
respectively, shall have and may exercise all functions which they 
respectively had or could exercise, immediately prior to the effective 
date of the Housing Amendments of 1955 or immediately prior to the 
effective date of the Independent Offices Appropriation Act, 1955. 
Said board shall annually make a report of its operations (including 
those of the Federal Savings and Loan Insurance Corporation) to 
the Congress as soon as practicable after the first day of January in 
each year. 
The name of the Home Loan Bank Board is hereby 
changed to 'Federal Home I^oan Bank Board'." 
(b) Subsection (e) of section 406 of the National Housing Act, as g^essf"'* ^"^"^ 
amended (12 U. S. C. 1729 (e)), is hereby amended by striking the 
68 stat. 643. 
words "Housing and Home Finance Administrator" and inserting in 
lieu thereof the word "Congress". 
SEC. 110. The Home Owners' Loan Act of 1933, as amended, is 
hereby amended by striking the proviso at the end of the second para-
graph of section 5 (c) and inserting: '"'•Provided^ That no such loan, 
ifu^c M^M (C). 
unless so insured or guaranteed, shall be made in excess of $2,500.". 
FEDERAL SAVINGS AND LOAN INSURANCE 
CORPORATION ADMISSION 
FEES 
SEC. 111. The National Housing Act, as amended, is hereby amended 
by striking section 403 (d) and inserting: 
i | use m^6(d). 
"(d) Any institution which applies after the effective date of the 
Housing Amendments of 1955 for insurance under this title shall pay, 
in the event its application is approved, an admission fee in such 
amount as the Corporation shall determine, taking into consideration 
the total cost of processing all insurance applications." 
COMMUNITY FACILITIES 
ADMINISTRATION 
SEC. 112. Section 702 of the Housing Act of 1954 is hereby amended 
H f}^^ ^
^
^
j
V 
to read as follows: 
"SEC. 702. (a) In order (1) to encourage municipalities and other 
public agencies to maintain at all times a current and adequate reserve 
of planned public works the construction of which can rapidly be 
commenced, particularly when the national or local economic situation 
makes such action desirable, and (2) to help attain maximum economy 
and efficiency in the planning and construction of public works, the 
Administrator is hereby authorized to make advances to public 
agencies (notwithstanding the provisions of section 3648 of the 
Revised Statutes, as amended) to aid in financing the cost of engineer-
ing and architectural surveys, designs, plans, working drawings, speci-
fications, or other action preliminary to and in preparation for the 
construction of public works: Provided, That the making of advances 
hereunder shall not in any way commit the Congress to appropriate 
funds to assist in financing the construction of any public works so 
planned: And provided further, That advances outstanding to public 
agencies in any one State shall at no time exceed 10 per centum of the 
aggregate then authorized to be appropriated to the revolving fund 
established pursuant to subsection (e) of this section. 
"(b) No advance shall be made hereunder with respect to any indi-
vidual project unless it is planned to be constructed within a reason-
able period of time, unless it conforms to an overall State, local, or 
54402 O - 55 - 41 
31 u s e 529. 
642 
PUBLIC LAW 345-AUG. 11, 1955 
[69 S T A T . 
Community F a -
cilities Commis-
sioner. 
Compensation, 
regional plan approved by a competent State, local, or regional author-
ity, and unless the public agency formally contracts with the Federal 
Government to complete the plan preparation promptly and to repay 
such advance or part thereof when due. Subsequent to approval and 
prior to disbursement of any Federal funds for the purpose of advance 
planning the applicant shall establish a separate planning account into 
which all Federal and applicant funds estimated to be required for 
plan preparation shall be placed. 
"(c) Advances under this section to any public agency shall be 
repaid without interest by such agency when the construction of the 
public works is undertaken or started: Provided^ That if the public 
agency undertakes to construct only a portion of a planned public 
work it shall repay such proportionate amount of the advances relat-
ing to the public work as the Administrator determines to be equitable: 
And 'provided further^ That in the event repayment is not made 
promptly such unpaid sum shall bear interest at the rate of 4 per 
centum per annum from the date of the Government's demand for 
repayment to the date of payment thereof by the public agency. 
"(d) The Administrator is authorized to prescribe rules and regu-
lations to carry out the purpose of this section. 
"(e) In order to provide moneys for advances in accordance with 
this section, the Administrator is hereby authorized to establish a 
revolving fund which shall comprise all moneys heretofore or here-
after appropriated pursuant to this section, together with all repay-
ments and other receipts in connection with advances made under this 
section. 
There are hereby authorized to be appropriated to such 
revolving fund, in addition to the amount authorized by this section 
as originally enacted, the further amounts of $12,000,000 which may 
be made available to the revolving fund on or after July 1, 1956; 
$12,000,000 which may be made available to such fund on or after 
July 1, 1957; $14,000,000 which may be made available to such fund 
on or after July 1,1958; and such additional sums which may be made 
available from year to year thereafter as may be estimated to be neces-
sary to maintain not to exceed a total of $48,000,000 in undisbursed 
balances in the revolving fund and in advances outstanding for plans 
in preparation or for completed plans with respect to projects which, 
in the determination of the Administrator, can be expected to be 
undertaken within a reasonable period of time." 
SEC. 113. Effective upon the date of enactment of this Act the basic 
rate of compensation of the Community Facilities Commissioner of 
the Housing and Home Finance Agency shall be the same as the basic 
rate of compensation established for the heads of the constituent 
agencies of the Housing and Home Finance Agency. 
TITLE II—PUBLIC FACILITY LOANS 
DECLARATION OF POLICY 
SEC. 201. It has been the policy of the Congress to assist wherever 
possible the States and their political subdivisions to provide the 
services and facilities essential to the health and welfare of the people 
of the United States. 
The Congress finds that in many instances municipalities, or other 
political subdivisions of States, which seek to provide essential public 
works or facilities, are unable to raise the necessary funds at reasonable 
interest rates. 
It is the purpose of this title to authorize the extension of credit to 
assist in the provision of certain essential public works or facilities by 
States, municipalities, or other political subdivisions of States, where 
69 STAT.] 
PUBLIC LAW 345-AUG. 11, 1955 
643 
such credit is not otherwise available on reasonable terms and 
conditions. 
FEDERAL LOANS 
SEC. 202. (a) The Housing and Home Finance Administrator, act-
ing through the Community Facilities Administration, is authorized 
to purchase the securities and obligations of, or make loans to, States, 
municipalities and other political subdivisions of States, public agen-
cies, and instrumentalities of one or more States, municipalities and 
political subdivisions of States, and public corporations, boards, and 
commissions established under the laws of any State, to finance specific 
public projects under State or municipal law. 
No such purchase or 
loan shall be made for payment of ordinary governmental or non-
project operating expenses. 
(b) The powders granted in subsection (a) of this section shall be 
subject to the following restrictions and limitations: 
(1) No financial assistance shall be extended under this section un-
less the financial assistance applied for is not otherwise available on 
reasonable terms, and all securities and obligations purchased and all 
loans made under this section shall be of such sound value or so secured 
as reasonably to assure retirement or repayment, and such loans may 
be made either directly or in cooperation with banks or other lending 
institutions through agreements to participate or by the purchase of 
participations or otherwise. 
(2) No securities or obligations shall be purchased, and no loans 
shall be made, including renewals or extensions thereof, which have 
maturity dates in excess of forty years. 
(c) In the processing of applications for financial assistance under 
this section the Administrator shall give priority to applications of 
smaller municipalities for assistance in the construction of basic public 
works (including works for the storage, treatment, purification, or 
distribution of water; sewage, sewage treatment, and sewer facili-
ties; and gas distribution systems) for which there is an urgent and 
vital public need. 
As used in this section, a "smaller municipality" 
means an incorporated or unincorporated town, or other political sub-
division of a State, which had a population of less than ten thousand 
inhabitants at the time of the last Federal census. 
FINANCING 
SEC. 203. (a) In order to finance activities under this title, the Ad-
ministrator is authorized and empowered to issue to the Secretary of 
the Treasury, from time to time and to have outstanding at any one 
time, in an amount not exceeding $100,000,000, notes and other obliga-
tions. 
Such obligations shall be in such forms and denominations, 
have such maturities and be subject to such terms and conditions as 
may be prescribed by the Administrator, with the approval of the 
Secretary of the Treasury. 
Such notes or other obligations shall 
bear interest at a rate determined by the Secretary of the Treasury, 
taking into consideration the current average rate on outstanding mar-
ketable obligations of the United States of comparable maturities 
as of the last day of the month preceding the issuance of such notes 
or other obligations. 
The Secretary of the Treasury is authorized 
and directed to purchase any notes and other obligations of the Ad-
ministrator to be issued hereunder and for such purpose the Secretary 
of the Treasury is authorized to use as a public debt transaction the 
proceeds from the sale of any securities issued under the Second Lib- 
3? tB^c*7¥/(2). 
erty Bond Act, as amended, and the purposes for which securities may 
644 
PUBLIC I^AW 345-AUG. 11, 1955 
[69 STAT. 
be issued under such Act, as amended, are extended to include any 
purchases of such notes and obligations. 
The Secretary of the Treas-
ury may at any time sell any of the notes or other obligations acquired 
by him under this section. 
All redemptions, purchases, and sales 
by the Secretary of the Treasury of such notes or other obligations 
shall be treated as public debt transactions of the United States. 
(b) Funds borrowed under this section and any proceeds shall 
constitute a revolving fund which may used by the Administrator in 
the exercise of his functions under this title. 
GENERAL PROVISIONS 
SEC. 204. In the performance of, and with respect to, the functions, 
powers, and duties vested in him by this title the Administrator shall 
(in addition to any authority otherwise vested in him) have the func-
12 ijic 7749a. 
tious, powcrs, and duties set forth in section 402, except subsection 
(c) (2), of the Housing Act of 1950. Funds obtained or held by 
the Administrator in connection with the performance of his func-
tions under this title shall be available for the administrative expenses 
of the Administrator in connection with the performance of such 
functions. 
SEC. 205. No loans shall be made under section 108 of the Recon-
40 use 459. 
struction Finance Corporation Liquidation Act (67 Stat. 230), as 
amended, after the date of enactment of this Act, except pursuant to 
an application for such loan filed prior to such date. 
AS°e"X"nrs'"of 
TITLE III—COLLEGE HOUSING 
1955. 
SEC. 301. Section 401 of title IV of the Housing Act of 1950, 
12 vie m9. 
^s amended, is hereby amended to read as follows: 
"SEC. 401. (a) To assist educational institutions in providing hous-
ing and other educational facilities for students and faculties, the 
Administrator may make loans of funds to such institutions for the 
construction of such facilities: Provided, That (1) no such loan shall 
be made unless the educational institution shows that it is unable to 
secure the necessary funds for such construction from other sources 
upon terms and conditions equally as favorable as the terms and con-
ditions applicable to loans under this title, and (2) no such loan 
shall be made unless the Administrator finds that the construction 
will be undertaken in an economical manner, and that it will not be 
of elaborate or extravagant design or materials. 
"(b) Any educational institution which, jjrior to the date of enact-
ment of this Act, has contracted for housing or other educational 
facilities may, in connection therewith, receive loans authorized under 
this title, as the Administrator may determine: Provided, That no 
such loan shall be made for any housing or other educational facilities, 
the construction of which was begun prior to the effective date of 
this Act, or completed prior to the filing of an application under 
this title. 
"(c) A loan to an educational institution may be in an amount 
not exceeding the total development cost of the facility, as deter-
mined by the Administrator; shall be secured in such manner and 
be repaid within such period, not exceeding fifty years, as may be 
determined by him; and with respect to loan contracts under which 
loan funds have not been fully disbursed prior to the date of enact-
ment of the College Housing Amendments of 1955 shall bear interest 
at a rate determined by the Administrator which shall be not more 
than the higher of (1) 2% per centum per annum, or (2) the total 
of one-quarter of 1 per centum per annum added to the rate of interest 
69 STAT.] 
PUBLIC LAW 345-AUG. 11, 1955 
645 
paid by the Administrator on funds obtained from the Secretary 
of the Treasury as provided in subsection (e) of this section. 
"(d) To obtain funds for loans under this title, the Administrator 
may issue and have outstanding at any one time notes and obligations 
for purchase by the Secretary of the Treasury in an amount not to 
exceed $500,000,000: Provided, That the amount outstanding for other 
educational facilities, as defined herein, shall not exceed $100,000,000. 
"(e) Notes or other obligations issued by the Administrator under 
this title shall be in such forms and denominations, have such maturi-
ties, and be subject to such terms and conditions as may be prescribed 
by the Administrator, with the approval of the Secretary of the 
Treasury. Such notes or other obligations issued to obtain funds for 
loan contracts entered into after the effective date of the College 
Housing Amendments of 1955 shall bear interest at a rate determined 
by the Secretary of the Treasury which shall be not more than the 
higher of (1) 2i/^ per centum per annum, or (2) the average annual 
interest rate on all interest-bearing obligations of the United States 
then forming a part of the public debt as computed at the end of the 
fiscal year next preceding the issuance by the Administrator and 
adjusted to the nearest one-eighth of 1 per centum. The Secretary 
of the Treasury is authorized and directed to purchase any notes and 
other obligations of the Administrator issued under this title and for 
such purpose is authorized to use as a public-debt transaction the 
proceeds from the sale of any securities issued under the Second 
Liberty Bond Act, as amended, and the purposes for which securities 
3? u#c 7
^
7
4 (2). 
may be issued under such Act, as amended, are extended to include 
any purchases of such notes and other obligations. The Secretary 
of the Treasury may at any time sell any of the notes or other obliga-
tions acquired by him under this section. 
All redemptions, pur-
chases, and sales by the Secretary of the Treasury of such notes or 
other obligations shall be treated as public-debt transactions of the 
United States. 
"(f) There are hereby authorized to be appropriated to the Admin- 
Appropriation, 
istrator such sums as may be necessary, together with loan principal 
and interest payments made by educational institutions assisted here-
under, for payments on notes or other obligations issued by the Admin-
istrator under this section." 
SEC. 302. That subsection (c) of section 404 of title IV of the 
f^&*s°cm9c. 
Housing Act of 1950, as amended, is hereby amended to read as 
follows: 
"(c) 'Development cost' means costs of the construction of the hous-
ing or other educational facilities and the land on which it is located, 
including necessary site improvements to permit its use for housing 
or other educational facilities." 
SEC. 303. Section 404 of title IV of the Housing Act of 1950, as 
amended, is amended by— 
(1) striking out subsection (b) and inserting in lieu thereof 
the following: 
"(b) 'Educational institution' means (1) any educational institu-
tion offering at least a two-year program acceptable for full credit 
toward a baccalaureate degree, including any public educational insti-
tution, or any private educational institution no part of the net earn-
ings of which inures to the benefit of any private shareholder or 
individual, and (2) any corporation (no part of the net earnings of 
which inures to the benefit of any private shareholder or individual) 
(A) established by any institution included in clause (1) of this sub-
section for the sole purpose of providing housing or other educational 
facilities for students or students and faculty of such institution 
without regard to their membership in or affiliation with any social, 
646 
PUBLIC LAW 345--AUG. 11, 1955 
[69 S T A T . 
fraternal, or honorary society or organization, and (B) upon dissolu-
tion of which all title to any property purchased or built from the 
proceeds of any loan secured under this title will pass to such insti-
tution."; and 
(2) adding at the end thereof the following new subsection: 
"(h) 'Other educational facilities' means (1) new structures suit-
able for use as cafeterias or dining halls, student centers or student 
unions, infirmaries or other inpatient or outpatient health facilities, 
and for other essential service facilities, and (2) structures suitable 
for the above uses provided by rehabilitation, alteration, conversion, 
or improvement of existing structures which are otherwise inade-
quate for such uses.". 
SEC. 304. This title may be cited as the "College Housing Amend-
ments of 1955". 
TITLE IV—ARMED SERVICES HOUSING MORTGAGE 
INSURANCE 
12 ^tlc Y748 et 
SEC. 401. Title VIII of the National Housing Act, as amended, is 
se» 
hereby amended to read as follows: 
"TITLE VIII—ARMED SERVICES HOUSING MORTGAGE 
INSURANCE 
"SEC. 801. As used in this title— 
"(a) The term 'mortgage' means a first mortgage on real estate, 
in fee simple, or on a leasehold (1) under a lease for not less than 
ninety-nine years which is renewable; or (2) under a lease for a 
period of not less than fifty years to run from the date the mortgage 
was executed; and the term 'first mortgage' means such classes of first 
liens as are commonly given to secure advances on, or the unpaid 
purchase price of, real estate, under the laws of the State in which 
the real estate is located, together with the credit instruments, if any, 
secured thereby. 
"(b) The term 'mortgagee' includes the original lender under a 
mortgage, and his successors and assigns approved by the Commis-
sioner ; and the term 'mortgagor' includes the original borrower under 
a mortgage, his successors and assigns. 
"(c) The term 'maturity date' means the date on which the mort-
gage indebtedness would be extinguished if paid in accordance with 
periodic payments provided for in the mortgage. 
"(d) The term 'housing accommodations' means housing designed 
for occupancy by military personnel and their dependents, assigned 
to duty at or near the military installation where such housing units 
are constructed. 
"(e) The term 'personnel' shall include military and civilian per-
sonnel approved by the Secretary of Defense, or his designee, and 
the dependents of all such personnel. 
"(f) The term 'military' includes Army, Navy, Marine Corps, Air 
Force, and Coast Guard. 
"(g) The term 'State' includes the several States and Alaska, 
Hawaii, Puerto Rico, the District of Columbia, Guam, and the Virgin 
Islands. 
H^'^ngs MoSage 
"SEC. 802. The Military Housing Insurance Fund created by this 
Insurance Fund. 
sectiou pHor to amendment thereto shall hereafter be known as the 
Armed 
Services Housing Mortgage 
Insurance 
Fund. 
General 
expenses of operation of the Federal Housing Administration under 
this title (including operations with respect to mortgages insured or 
69 S T A T . ] 
PUBLIC LAW 345-AUG. U , 1955 
64(1 
to be insured pursuant to this title prior to enactment of the Housing 
Amendments of 1955) may be charged to the Armed Services Housing 
Mortgage Insurance Fund. 
"SEC. 803. (a) In order to assist in relieving the acute shortage and 
urgent need for family housing which now exists at or in areas adja-
cent to military installations because of uncertainty as to the perma-
nency of such installations and to increase the supply of necessary 
family housing accommodations for personnel at such installations, 
the Commissioner is authorized, upon application of the mortgagee, 
to insure mortgages (including advances on such mortgages during 
construction) which are eligible for insurance as hereinafter provided, 
and, upon such terms as the Commissioner may prescribe, to make 
commitments for so insuring such mortgages prior to the date of their 
execution or disbursement thereon: Provided^ That the aggregate 
amount of principal obligations of all mortgages insured under this 
title shall not exceed $1,363,500,000: And 'provided further^ That the 
limitation in section 217 of this Act shall not apply to this title: And 
'^'®' ^" ^^^' 
provided further^ That no mortgage shall be insured under this title 
after September 30, 1956, except pursuant to a commitment to insure 
issued before such date. 
"(b) To be eligible for insurance under this title a mortgage shall 
meet the following conditions: 
"(1) The mortgaged property shall be held by a mortgagor 
approved by the Commissioner. 
The Commissioner may, in his dis-
cretion, require such mortgagor to be regulated or restricted as to 
capital structure, and methods of operation. 
The Commissioner may 
make such contracts with, and acquire for not to exceed $100 stock or 
interest in, any such mortgagor, as the Commissioner may deem neces-
sary to render effective such restriction or regulation. 
Such stock or 
interest shall be paid for out of the Armed Services Housing Mortgage 
Insurance Fund, and shall be redeemed by the mortgagor at par upon 
the termination of all obligations of the Commissioner under the 
insurance. 
"(2) The mortgaged property shall be designed for use for resi-
dential purposes by personnel of the armed services and situated at 
or near a military installation, and the Secretary or his designee 
shall have certified that there is no intention, so far as can reasonably 
be foreseen, to substantially curtail the personnel assigned or to be 
assigned to such installation, and (i) shall have determined that for 
reasons of safety, security, or other essential military requirements, 
it is necessary that the personnel involved reside in public quarters 
{Provided^ however^ That for the purposes of this subsection housing 
covered by a mortgage insured, or for which a commitment to insure 
has been issued, under section 803 prior to the enactment of the 
'Housing Amendments of 1955' may be considered the same as avail-
able quarters), or (ii) after consultation with the Commissioner, 
shall have determined that adequate housing is not available for 
such personnel at reasonable rentals within reasonable commuting 
distance of the installation. 
The housing accommodations shall 
comply with such standards and conditions as the Commissioner may 
prescribe to establish the acceptability of such property for mort-
gage insurance, except that the certification of the Secretary of 
Defense, or his designee, shall (for purposes of mortgage insurance 
under this title) be conclusive evidence to the Commissioner of the 
existence of the need for such housing. However, if the Commissioner 
does not concur in the housing needs as certified by the Secretary, 
the Commissioner may require the Secretary to guarantee the Armed 
Services Housing Mortgage Insurance Fund from loss with respect 
to the mortgage covering such housing. 
There are hereby author-
648 
PUBLIC LAW 345-AUG. 11, 1955 
[69 S T A T . 
Amount of prin-
cipal obligation. 
Amortization; in-
terest. 
Premium charge. 
Failure of mort-
gagor to pay. 
ized to be appropriated such sums as may be necessary to provide for 
payment to meet losses arising from such guarantee. 
"(3) The mortgage shall involve a principal obligation in an 
amount— 
"(A) not to exceed the amount which the Commissioner esti-
mates will be the replacement cost of the property or project 
when the proposed improvements are completed (the cost of the 
property or project as such term is used in this paragraph may 
include the cost of the land, the physical improvements, and 
utilities within the boundaries of the property or project); 
"(B) not to exceed an average of $13,500 per family unit for 
such part of such property or project as may be attributable to 
dwelling use: Provided^ That the replacement cost of the prop-
erty or project as determined by the Commissioner, including the 
estimated value of any usable utilities within the boundaries of 
the property or project where owned by the United States and 
not provided for out of the proceeds of the mortgage, shall not 
exceed an average of $13,500 per family unit; and 
"(C) not to exceed the bid of the eligible builder of the prop-
erty or project under section 403 of the Housing Amendments 
of 1955. 
The mortgage shall provide for complete amortization by periodic 
E
ayments within such terms as the Commissioner shall prescribe, 
ave a maturity not to exceed twenty-five years, and shall bear interest 
(exclusive of premium charges for insurance) at not to exceed 4 per 
centum per annum of the amount of the principal obligation outstand-
ing at any time. The Commissioner may consent to the release of a 
part or parts of the mortgaged property from the lien of the mort-
gage upon such terms and conditions as he may prescribe and the 
mortgage may provide for such release. 
"(c) The Commissioner is authorized to fix a premium charge for 
the insurance of mortgages under this title but in the case of any 
mortgage such charge shall not be less than an amount equivalent 
to one-half of 1 per centum per annum nor more than an amount 
equivalent to 1% per centum per annum of the amount of the prin-
cipal obligation of the mortgage outstanding at any time, without 
taKing into account delinquent payments or prepayments. 
Such 
premium charges shall be payable by the mortgagee, either in cash, 
or in debentures issued by the Commissioner under this title at par 
plus accrued interest, in such manner as may be prescribed by the 
Commissioner: Provided, That the Commissioner may require the 
payment of one or more such premium charges at the time the mort-
gage is insured, at such discount rate as he may prescribe not in ex-
cess of the interest rate specified in the mortgage. If the Commis-
sioner finds, upon the presentation of a mortgage for insurance and 
the tender of the initial premium charge and such other charges as 
the Commissioner may require, that the mortgage complies with tlie 
provisions of this title, such mortgage may be accepted for insur-
ance by endorsement or otherwise as the Commissioner may pre-
scribe. In the event that the principal obligation of any mortgage 
accepted for insurance under this title is paid in full prior to the 
maturity date, the Commissioner is authorized to refund to the mort-
gagee for the account of the mortgagor all, or such portion as he 
shall determine to be equitable, of the current unearned premium 
charges theretofore paid. 
The Commissioner may reduce the pay-
ment of premiums provided for herein. 
"(d) The failure of the mortgagor to make any payment due under 
or provided to be paid by the terms of a mortgage insured under 
this title shall be considered a default under such mortgage, and, if 
69 S T A T . ] 
PUBLIC LAW 345-AUG. 11, 1955 
649 
such default continues for a period of thirty days, the mortgagee 
shall be entitled to receive the benefits of the insurance as herein-
after provided, upon assignment, transfer, and delivery to the Com-
missioner, within a period and in accordance with rules and regula-
tions to be prescribed by the Commissioner of (1) all rights and 
interest arising under the mortgage so in default; (2) all claims of 
the mortgagee against the mortgagor or others, arising out of the 
mortgage transactions; (3) all policies of title or other insurance 
or surety bonds or other guaranties and any and all claims there-
under; (4) any balance of the mortgage loan not advanced to the 
mortgagor; (5) any cash or property held by the mortgagee, or 
to which it is entitled, as deposits made for the account of the mort-
gagor and which have not been applied in reduction of the principal 
of the mortgage indebtedness; and (6) all records, documents, books, 
papers, and accounts relating to the mortgage transaction. 
Upon 
such assignment, transfer, and delivery, the obligation of the mort-
gagee to pay the premium charges for mortgage insurance shall 
cease, and the Commissioner shall, subject to the cash adjustment 
provided for in subsection (e) of this section, issue to the mortgagee 
debentures having a total face value equal to the value of the mort-
gage, and a certificate of claim as hereinafter provided. 
For the 
purposes of this subsection, the value of the mortgage shall be deter-
mined in accordance with rules and regulations prescribed by the 
Commissioner, by adding to the amount of the original principal 
obligation of the mortgage which was unpaid on the date of default, 
the amount the mortgagee may have paid for (A) taxes, special 
assessments, and water rates, which are liens prior to the mortgage; 
(B) insurance on the property; and (C) reasonable expenses for 
the completion and preservation of the property and any mortgage 
insurance premiums paid after default; less the sum of (i) any amount 
received on account of the mortgage after such date; and (ii) any ]iet 
income received by the mortgagee from the property after such date. 
"(e) Debentures issued under this title shall be in such form and 
denominations in multiples of $50, shall be subject to such terms and 
conditions, and shall include such provisions for redemption, if any, 
as may be prescribed by the Commissioner with the approval of the 
Secretary of the Treasury, and may be in coupon or registered form. 
Any difference between the value of the mortgage determined as 
herein provided and the aggregate face value of the debentures issued, 
not to exceed $50, shall be adjusted by the payment of cash by the 
Commissioner to the mortgagee from the Armed Services Housing 
Mortgage Insurance Fund. 
"(f) Debentures issued under this title shall be executed in the 
name of the Armed Services Housing Mortgage Insurance Fund as 
obligor, shall be signed by the Commissioner, by either his written 
or engraved signature, and shall be negotiable. All such debentures 
shall be dated as of the date of default as determined in accordance 
with subsection (d) of this section, and shall bear interest from such 
date at a rate determined by the Commissioner with the approval 
of the Secretary of the Treasury, at the time the mortgage was 
accepted for insurance, but not to exceed 3 per centum per annum, 
payable semiannually on the 1st day of January and the 1st day of 
July of each year, and shall mature twenty years after the date 
thereof. Such debentures shall be exempt, both as to principal and 
interest, from all taxation (except surtaxes, estate, inheritance, and 
gift taxes) now or hereafter imposed by any Territory, dependency, 
or possession of the United States or by the District of Columbia, or 
by any State, county, municipality, or local taxing authority. 
They 
shall be paid out of the Armed Services Housing Mortgage Insurance 
Debentures. 
Tax exemption. 
Guaranty. 
650 
PUBLIC LAW 345-AUG. 11, 1955 
[69 
S T A T , 
C e r t i f i c ate of 
claim. 
55 Stat. 60. 
12 u s e 1739. 
12 u s e 1713. 
12 
seq. u s e 1707 et 
V a l i d i t y of in-
surance contract. 
M o n e y s 
n o t 
needed for current 
operations. 
F e e s , receipts, 
etc. 
Fund, which shall be primarily liable therefor, and they shall be fully 
and unconditionally guaranteed as to principal and interest by the 
United States, and such guaranty shall be expressed on the face of the 
debentures. 
In the event the Armed Services Housing Mortgage 
Insurance Fund fails to pay upon demand, when due, the principal 
of or interest on any debentures so guaranteed, the Secretary of the 
Treasury shall pay to the holders the amount thereof which is hereby 
authorized to be appropriated, and thereupon to the extent of the 
amount so paid the Secretary of the Treasury shall succeed to all the 
rights of the holders of such debentures. 
"(g) The certificate of claim issued by the Commissioner to any 
mortgagee in connection with the insurance of mortgages under this 
title shall be for an amount determined in accordance with subsec-
tions (e) and (f) of section 604 of this Act, except that any amount 
remaining after the payment of the full amount under the certificate 
of claim shall be retained by the Commissioner and credited to the 
Armed Services Housing Mortgage Insurance Fund. 
"(h) The provisions of section 207 (k) and section 207 (1) of this 
Act shall be applicable to mortgages insured under this title and to 
property acquired by the Commissioner hereunder, except that as 
applied to such mortgages and property (1) all references in such 
sections to the 'Housing Fund' shall be construed to refer to the 
'Armed Services Housing Mortgage Insurance Fund', and (2) the 
reference in section 207 (k) to 'subsection (g)' shall be construed to 
refer to 'subsection (d)' of this section. 
"(i) The Commissioner shall also have power to insure under this 
title or title I I any mortgage executed in connection with the sale 
by him of any property acquired under this title without regard to 
any limit as to eligibility, time or aggregate amount contained in this 
title or title II. 
" (j) Any contract of insurance executed by the Commissioner under 
this title shall be conclusive evidence of the eligibility of the mortgage 
for insurance and the validity of any contract of insurance so exe-
cuted shall be incontestable in the hands of an approved mortgagee 
from the date of the execution of such contract, except for fraud or 
misrepresentation on the part of such approved mortgagee. 
"SEC. 804. (a) Moneys in the Armed Services Housing Mortgage 
Insurance Fund not needed for current operatiqns under this title 
shall be deposited with the Treasurer of the United States to the credit 
of the Armed Services Housing Mortgage Insurance Fund, or invested 
in bonds or other obligations of, or in bonds or other obligations 
guaranteed as to principal and interest by, the United States. 
The 
Commissioner may, with the approval of the Secretary of the Treas-
ury, purchase in the open market debentures issued under the pro-
visions of this title. 
Such purchases shall be made at a price which 
will provide an investment yield of not less than the yield obtainable 
from other investments authorized by this section. 
Debentures so 
purchased shall be canceled and not reissued. 
"(b) Premium charges, adjusted premium charges, and appraisal 
and other fees, received on account of the insurance of any mortgage 
insured under this title, the receipts derived from any such mortgage 
or claim assigned to the Commissioner and from any property ac-
quired by the Commissioner, and all earnings on the assets of the 
Armed Services Housing Mortgage Insurance Fund, shall be credited 
to the Armed Services Housing Mortgage Insurance Fund. 
The prin-
cipal of and interest paid and to be paid on debentures issued in 
exchange for any mortgage or property insured under this title, cash 
adjustments, and expenses incurred in the handling of such mortgages 
or property and in the foreclosure and collection of mortgages and 
69 S T A T . ] 
PUBLIC LAW 345-AUG. 11, 1955 
651 
claims assigned to the Commissioner under this title, shall be charged 
to the Armed Services Housing Mortgage Insurance Fund. 
"SEC. 805. Whenever the Secretary of the Army, Navy, or Air Force 
determines that it is necessary to lease any land held by the United 
States on or near a military installation to effectuate the purposes 
of this title, he may lease such land upon such terms and conditions 
as will, in his opinion, best serve the national interest. 
The authority 
conferred by this section shall be in addition to and not in derogation 
of any other power or authority of the Secretary of the Army, Navy, 
or Air Force. 
"SEC. 806. The second sentence of section 214 of the National Hous-
ing Act, as amended, relating to housing in the Territory of Alaska, 
shall not apply to mortgages insured under this title on property in 
said Territory. 
"SEC. 807. The Commissioner is authorized and directed to make 
such rules and regulations as may be necessary to carry out the pro-
visions of this title. In the performance of, and with respect to, the 
functions, powers, and duties vested in him by this title, the Com-
missioner, notwithstanding the provisions of any other law, shall 
appoint a Special Assistant for Armed Services Housing for Mort-
gage Insurance, and provide the Special Assistant with adequate staff, 
whose whole responsibility will be to expedite operations under this 
title and to eliminate administrative obstacles to the full utilization 
of this title under the direction and supervision of the Commissioner. 
"SEC. 808. The cost certification required under section 227 of this 
Act shall not be required with respect to mortgages insured under the 
provisions of this title as amended by the Housing Amendments of 
1955." 
SEC. 402. Section 305 of the National Housing Act, as amended, is 
amended by adding the following at the end thereof: 
"(f) Notwithstanding any other provision of this Act, the Associ-
ation is authorized to make commitments to purchase and to purchase, 
service, or sell, any mortgage (or participation therein) which is 
insured under title VIII of this Act, as amended by the Housing 
Amendments of 1955: Provided^ That the total amount of purchases 
and commitments authorized by this subsection shall not exceed 
$200,000,000 outstanding at any one time." 
SEC. 403. (a) The Secretary of Defense or his designee is hereby 
authorized to enter into contracts with any eligible builder to provide 
for the construction of urgently needed housing on lands owned or 
leased by the United States and situated on or near a military reserva-
tion or installation for the purpose of providing suitable living accom-
modations for military personnel of the armed services assigned to 
duty at the military installation at or in the area where the housing 
is situated. 
Any such contract shall provide that each housing unit 
in the project shall be placed under the control of the Secretary of 
Defense, or his designee, as soon as the unit is available for occupancy 
as determined by the Commissioner. 
Any such contract shall also 
provide that, except for stock held by the Commissioner, the capital 
stock of the builder (where the builder is a corporation) be transferred 
to the Secretary of Defense, or his designee, when the housing has been 
completed as determined by the Commissioner. 
Any such contract 
shall contain such terms and conditions as the Secretary may determine 
to be necessary to protect the interests of the United States. 
Before 
the Secretary shall enter into any contract with any builder as author-
ized by this section for the construction of housing, he shall invite the 
submission of competitive bids after advertising in the manner pre-
scribed in section 3 of the Armed Services Procurement Act of 1947. 
(b) For the purposes of this title, the term "eligible builder" means 
Land leases on 
or near military in-
stallations. 
Alaska. 
12 u s e 171Sd. 
Rules and regu-
lations. 
12 u s e 1715r. 
Ante, p. 636. 
Construction on 
U. S. lands for mil-
itary personnel. 
62 Stat. 22. 
41 u s e 152. 
652 
PUBLIC LAW 345-AUG. 11, 1955 
[69 S T A T . 
Acquis ition of 
capital stock. 
unimproved land, 
etc 
a person, partnership, firm, or corporation determined by the Secretary 
after consultation with the Commissioner (1) to be qualified by expe-
rience and financial responsibility to construct housing of the type 
described in subsection (a) of this section, and (2) to have submitted 
the lowest acceptable bid. 
(c) Notwithstanding any other provision of law, the Secretary of 
Defense or his designee is authorized to acquire the capital stock of 
mortgagors holding property covered by a mortgage insured under 
title VIII of the National Housing Act, as amended by the Housing 
Amendments of 1955, and to exercise the rights as holder of such 
capital stock during the life of such mortgage and, upon the termina-
tion of the mortgage, to dissolve the corporation; to guarantee the 
payment of notes or other legal instruments required by the Commis-
sioner of such mortgagors; to make payments thereon; and to guaran-
tee and indemnify the Armed Services Housing Mortgage Insurance 
Fund against loss in cases where so required. 
All housing facilities 
placed under the control of the Secretary of Defense pursuant to the 
provisions of this title shall be deemed to be housing facilities under the 
jurisdiction of the military department to which they are assigned. 
Acquisition of 
gj,^. 4Q4 Whenever the Secretary of Defense or his designee shall 
deem it necessary for the purposes of this title, he may acquire by 
purchase, donation, or other means of transfer, or may cause pro-
ceedings to be instituted in any court having jurisdiction of such pro-
ceedings to acquire by condemnation, any unimproved land, or (with 
the approval of the Federal Housing Commissioner) any housing 
financed with mortgages insured under the provisions of title VIII 
of the National Housing Act as in effect prior to the enactment of 
the Housing Amendments of 1955. Notwithstanding the provisions 
of any other law, the price paid for any such unimproved land or 
housing purchased by the Secretary under this or any other law 
shall be the fair market value of such land or housing as determined 
by the Secretary on the basis of an independent appraisal, and, in 
connection with any agreements to purchase such housing, the Secre-
tary of Defense or his designee may assume, or purchase subject to, any 
such mortgage. Any such condemnation proceedings shall be con-
ducted in accordance with the provisions of the Act of August 1,1888 
(25 Stat. 357), as amended, or any other applicable Federal statute. 
Before condemnation proceedings are instituted pursuant to this sec-
tion, an effort shall be made to acquire the property involved by 
negotiation unless, because of reasonable doubt as to the identity 
of the owner or owners, because of the large number of persons with 
whom it would be necessary to negotiate, or for other reasons, the 
effort to acquire by negotiation would involve, in the judgment of 
the Secretary, such delay in acquiring the property as to be con-
trary to the interest of national defense. In any condemnation pro-
ceeding instituted pursuant to this section, the court shall not order 
the party in possession to surrender possession in advance of final 
judgment unless a declaration of taking has been filed, and a deposit 
of the amount estimated to be just compensation has been made, under 
the first section of the Act of February 26, 1931 (46 Stat. 1421), pro-
viding for such declarations. Unless title is in dispute, the courts, 
upon application, shall promptly pay to the owner at least 75 per 
centum of the amount so deposited, but such payment shall be made 
without prejudice to any party to the proceeding. Property acquired 
under this section may be occupied, used, and improved for the pur-
poses of this section prior to the approval of title by the Attorney 
General as required by section 355 of the Revised Statutes, as amended. 
SEC. 405. The Secretary of Defense or his designee is authorized 
to maintain and operate any housing acquired under this title and 
40 use 257. 
40 use 258a. 
40 use 255. 
69 
S T A T . ] 
PUBLIC LAW 345-AUG. 11, 1955 
653 
assign quarters therein to military and civilian personnel and their 
dependents. Appropriations for quarters allowances or appropriate 
allotments, and rental charges to civilian personnel, may be utilized 
by the military department concerned for the payment of principal, 
interest, and other obligations, except those of maintenance and opera-
tion, of the mortgagor corporation with respect to such housing proj-
ects. Such payments shall not exceed an average of $90 a month per 
housing unit and total payments for all housing so acquired shall not 
exceed $9,000,000 per month: Provided^ That, in case of the United 
States Coast Guard, total payments for all housing so acquired shall 
not exceed $90,000 per month. 
SEC. 406. Whenever the Secretary of Defense or his designee deter-
mines that it is desirable in order to effectuate the purposes of this title, 
the Secretary is authorized, without regard to the civil service and 
classification laws, to procure, by negotiation or otherwise, the serv-
ices of architects and engineers, or organizations thereof, under such 
arrangements as he deems desirable, but at an expense not in excess of 
that permissible under the schedule of fees allowed from time to time 
by the Public Housing Administration in connection with projects 
assisted under the United States Housing Act of 1937, as amended. 
Such services may include the development of plans, drawings, and 
specifications for family housing under this title and other services 
in connection therewith: Provided^ That such plans, drawings, and 
specifications may include the use on any project to be constructed 
under this title of alternate materials or alternate types of construc-
tion, including prefabrication, that provide substantially equal value 
and conform to standards established by the Federal Housing Com-
missioner : Provided further^ That the Secretary may designate certain 
sites or parts thereof for family housing to be furnished from pre-
fabricated houses or housing components. Such arrangements may 
include provision for advance or progress payments, for payment by 
third parties, for payment by the Government of any such com-
pensation as is not paid for by third parties, and shall include pro-
vision for reimbursement by third parties to the Government of any 
compensation or other expenses paid by the Government pursuant 
to this section, and may include other provisions for compensation. 
Any public works appropriations now or hereafter available to the 
Departments of the Army, Navy, or Air Force or the Coast Guard 
may be obligated by the respective departments or the Coast Guard 
for these purposes. Reimbursements to the Government on account 
of payments made pursuant to this section shall be made to appro-
priations against which such payments were charged. The Secretary 
is further authorized to advance or pay to the Federal Housing 
Administration its "Appraisal and Eligibility Statement" fees in 
connection with such family housing. The Secretary is further 
authorized to enter into arrangements by contract or otherwise for 
eventual acquisition by the Government, without cost to the Govern-
ment of all right, title, and interest in sites on which housing is con-
structed pursuant to this title and improvements thereon. 
SEC. 407. (a) There are hereby authorized to be appropriated such 
sums as may be necessary to carry out the provisions of sections 403 
through 406 of this Act. 
(b) Any funds heretofore or hereafter authorized to be expended 
by any of the military departments or the Coast Guard for the pay-
ment of allowances for quarters for military personnel may be used 
for the purposes specified in subsection (a) above. 
SEC. 408. Notwithstanding the provisions of section 401 of this Act, 
the provisions of title V I I I of the National Housing Act in effect 
prior to the enactment of the Housing Amendments of 1955 shall 
Use of quarters 
allowances, etc. 
Coast Guard. 
Services of archi-
t e c t s and e n g i-
neers. 
SO Stat. 888. 
42 
u s e 
1401-
1430. 
Appropriations. 
Prior 
ments. 
c o m m i t -
654 
PUBLIC LAW 346~AUG. 11, 1955 
[69 S T A T , 
continue in full force and effect with respect to all mortgages insured 
pursuant to a certification by the Secretary of Defense or his designee 
made on or before June 30, 1955,. and a commitment to insure issued 
on or before June 30,1956 or pursuant to a certification by the Atomic 
Energy Commission or its designee made on or before June 30, 1956, 
except that the maximum dollar amount for each such mortgage shall 
be $12,500,000. 
SEC. 409. (a) Wherever the terms "Secretary of Defense" or "Sec-
retary" or "Secretary of the Army, Navy, or Air Force" appear in 
this title or in title VIII of the National Housing Act, as amended 
by the Housing Amendments of 1955, they shall be deemed to mean 
the Secretary of the Treasury in the case of the application of the 
provisions of this title or of title V I I I of the National Housing Act, 
as amended by the Housing Amendments of 1955, for the benefit of 
the United States Coast Guard. 
(b) Wherever the term "armed services" appears in this title it shall 
be deemed to include the United States Coast Guard. 
68 
Stat. 320. 
42 
use 1481. 
42 
use 1482. 
42 
use 1483. 
TITLE V—FAKM HOUSING 
SEC. 501. Title V of the Housing Act of 1949, as amended, is hereby 
further amended as follows: 
(1) In the first sentence of section 511 immediately following the 
phrase "July 1, 1953" strike out the word "and" and insert at the 
end of the sentence immediately before the period a comma and the 
following: "and an additional $100,000,000 on and after July 1,1955". 
(2) In section 512, (A) strike out "and 1954" and insert "1954, and 
1955", and (B) strike out "and $2,000,000" and insert "$2,000,000 
and $2,000,000". 
(3) In section 513, strike out "and $10,000,000 on July 1 of each 
of the years 1950,1951,1952,1953, and 1954" and insert "$10,000,000, 
and $10,000,000 on July 1 of each of the years 1950, 1951, 1952, 1953, 
1954, and 1955". 
Approved August 11, 1955. 
Public Law 346 
CHAPTER 784 
August 11. 1955 
[S.2260] 
Red River. 
Consent of Con-
gress to interstate 
compact* 
Reports. 
AN ACT 
Granting the consent of Congress to the States of Arkansas, Louisiana, Okla-
homa, and Texas to negotiate and enter into a compact providing for the 
apportionment of the waters of the Red River and its tributaries. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That the consent 
of Congress is hereby given to the States of Arkansas, Louisiana, 
Oklahoma, and Texas to negotiate and enter into a compact providing 
for an equitable apportionment among them of the waters of the 
Red River and its tributaries, upon the condition that one qualified 
person appointed by the President of the United States shall par-
ticipate in such negotiations as chairman, without vote, representing 
(he United States, and shall make a report to the President of the 
United States and the Congress of the proceedings and of any com-
pact entered into. 
Such compact shall not be binding or obligatory 
upon any of the parties thereto until it shall have been ratified by 
the legislatures of each of the respective States, and approved by the 
Congress of the United States. 
Approved August 11, 1955.