An Act to amend the National Housing Act and other laws relating to housing
PL 83-94 (S.2103), enacted 06/30/1953

67 
S T A T . ] 
PUBLIC LAW 94-JUNE 30, 1953 
121 
Public Law 94 
CHAPTER 170 
AN ACT 
To amend the National Housing Act and other laws relating to housing. 
June 30, 1953 
[S. 2103] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ That this Act may 
be cited as the "Housing Amendments of 1953". 
SEC. 2. Section 8 (b) (2) of the National Housing Act, as amended, 
is hereby amended to read as follows: 
"(2) involve a principal obligation (including such initial service 
charges, appraisal, inspection, and other fees as the Commissioner 
shall approve) in an amount not to exceed $5,700, and not to exceed 95 
per centum of the appraised value, as of the date the mortgage is 
accepted for insurance, of a property upon which there is located a 
dwelling designed principally for a single-family residence, and which 
is approved for mortgage insurance prior to the beginning of construc-
tion : Provided^ That the mortgagor shall be the owner and occupant 
of the property at the time of insurance and shall have paid on account 
of the property at least 5 per centum of the Commissioner's estimate 
of the cost of acquisition in cash or its equivalent, or shall be the 
builder constructing the dwelling, in which case the principal obliga-
tion shall not exceed 85 per centum of the appraised value of the 
property or $5,100: Provided further^ That the Commissioner finds 
that the project with respect to which the mortgage is executed is an 
acceptable risk, giving consideration to the need for providing ade-
quate housing for families of low and moderate income particularly 
in suburban and outlying areas: And provided further^ That, where 
the mortgagor is the owner and occupant of the property and estab-
lishes (to the satisfaction of the Commissioner) that his home, which 
he occupied as an owner or as a tenant, was destroyed or damaged to 
such an extent that reconstruction is required as a result of a flood, fire, 
hurricane, earthquake, storm or other catastrophe, which the Presi-
dent, pursuant to section 2 (a) of the Act entitled 'An Act to authorize 
Federal assistance to States and local governments in major disasters, 
and for other purposes' (Public Law 875, Eighty-first Congress, 
approved September 30, 1950), has determined to be a major disaster, 
such maximum dollar limitation may be increased by the Commis-
sioner from $5,700 to $7,000, and the percentage limitation may be 
increased by the Commissioner from 95 per centum to 100 per centum 
of the appraised value;". 
SEC. 3. Section 203 of the National Housing Act, as amended, is 
hereby amended by adding the following new subsection at the end 
thereof: 
"(g) Notwithstanding any other provisions of this section, a mort-
gage otherwise eligible for insurance hereunder and covering property 
upon which there is located a dwelling designed principally for a 
single-family residence and which is approved for mortgage insurance 
prior to the beginning of construction, may have such higher ratio 
of loan to value and such longer maturity than otherwise provided as 
the President may determine to be in the public interest, taking into 
account the general effect of such higher ratio or longer maturity, as 
the case may be, upon conditions in the building industry and upon 
the national economy: Provided^ That the principal obligation of any 
such mortgage shall not exceed $12,000 and the maturity thereof shall 
not exceed thirty years: And provided further^ That with respect to 
any such mortgage the mortgagor shall be the owner and occupant of 
the property at the time of insurance and shall have paid on account 
of the property at least 5 per centum of the Commissioner's estimate 
of the cost of acquisition in cash or its equivalent." 
Housing Amend-
ments of 1953. 
64 Stat. 49. 
12 u s e 1706C. 
Mortgage 
insur-
ance. 
L o w-c o s t sale 
housing. 
64 Stat. n o 9 . 
42 u s e 1855a. 
48 Stat. 1248. 
12 u s e 1709. 
S 1 n g 1 e-f a m i 1 y 
residence. 
122 
PUBLIC LAW 94-JUNE 30, 1953 
[67 ST A T . 
12 u s e 1711. 
Group accounts. 
S e m i a n n u a l 
transfer. 
T ermination 
o f 
S e t t l e m e n t of 
accounts. 
12 u s e 1713. 
M u l t i f a t n i l y 
rental housing. 
SEC. 4. Section 205 (c) of the National Housing Act, as amended, is 
hereby amended to read as follows: 
"(c) The Commissioner shall, except as to group accounts termi-
nated as of a date prior to July 1, 1953, transfer from each of the 
several group accounts to the general reinsurance account, beginning 
as of July 1, 1953, and as of the beginning of each semiannual period 
thereafter, an amount which, in the case of the initial transfer, shall 
equal 10 per centum of the total premium charges theretofore credited 
to such group accounts, and, in the case of subsequent transfers, shall 
equal the amount of any adjusted premium charges collected by the 
Commissioner in connection with the payment in full of insured 
mortgages prior to maturity on or after July 1, 1953, and an amount 
which shall in no event be less than 10 per centum nor more than 35 
per centum of all other premium charges credited to such group 
accounts during the preceding semiannual period: Provided, 
That, 
until such time as the Commissioner determines that the resources 
in the general reinsurance account are sufficient to cover all estimated 
future deficits among individual group accounts, 100 per centum of 
all other premium charges credited to such group accounts during 
each such semiannual period shall be transferred as provided in this 
subsection. 
The Commissioner shall terminate the insurance as to 
any group of mortgages (1) when he shall determine that the amounts 
to be distributed, as hereinafter set forth, to each mortgagee under an 
outstanding mortgage assigned to such group are sufficient to pay off 
the unpaid principal of each such mortgage, or (2) when all the out-
standing mortgages in any group have been paid. In addition to the 
amounts transferred as herein provided, the Commissioner shall, upon 
such termination, charge to the group account the estimated losses 
arising from transactions relating to that group, and shall distribute 
to the mortgagees for the benefit and account of the mortgagors of the 
mortgages assigned to such group the balance remaining in such 
group account, less any amount by which such balance exceeds the 
aggregate scheduled annual premiums of such mortgagors to the year 
of termination of the insurance: Provided, That any undistributed 
balance in the group account at termination shall be transferred to 
the general reinsurance account. Any such distribution to mortgagees 
shall be made equitably and in accordance with sound actuarial and 
accounting practice: Provided, That in no event shall any distribution 
to a mortgagor or for the account of a mortgagor under any provision 
of this section exceed his aggregate scheduled annual premiums to 
the year of termination of the insurance." 
SEC. 5. (a) Section 207 (c) of the National Housing Act, as 
amended, is hereby amended— 
(1) by striking out of paragraph numbered (2), "the sum of (i) 
90 per centum of that portion of the estimated value of the prop-
erty or project attributable to dwelling use (when the proposed 
improvements are completed) which does not exceed $7,0{)() per 
family unit and (ii) 60 per centum of such estimated value in 
excess of $7,000 and not in excess of $10,000 per family unit and 
(iii) 90 per centum of the estimated value of such part of such 
property or project as may be attributable to nondwelling use" and 
inserting "80 per centum of the estimated value of the property 
or project (when the proposed improvements are completed)"; 
(2) by amending paragraph numbered (3) to read as follows: 
"(3) not to exceed, for such part of such property or project as 
may be attributable to dwelling use, $2,000 per room (or $7,200 
per family unit if the number of rooms in such property or pioject 
does not equal or exceed four per family unit) and not in excess 
of $10,000 per family unit."; and 
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S T A T . ] 
PUBLIC LAW 94-JUNE 30, 1953 
123 
(3) by inserting after paragraph numbered (3) the following 
new paragraph: 
"Notwithstanding any of the limitations contained in para-
graphs numbered (2) and (3) of this subsection (c), if the number 
of bedrooms in such property or project is equal to or exceeds 
two per family unit, and the principal obligation of the mortgage 
does not exceed $7,200 per family unit for such part of such prop-
erty as may be attributable to dwelling use, the mortgage may 
involve a principal obligation not in excess of 90 per centum of the 
estimated value of the property or project (when the proposed 
improvements are completed)." 
(b) Section 207 (i) of the National Housing Act, as amended, is 
hereby amended by striking out of the second sentence thereof the 
word "twenty" and inserting in lieu thereof the word "ten". 
SEC. 6. The first sentence of section 213 (d) of the National Housing 
Act, as amended, is hereby amended by striking "4 per centum per 
annum" and inserting "4i/^ per centum per annum, except that indi-
vidual mortgages insured pursuant to this subsection covering the 
individual dwellings in the project may bear interest at not to exceed 
5 per centum per annum,". 
SEC. 7. Section 217 of the National Housing Act, as amended, is 
hereby amended by striking out of the second proviso "$1,900,000,000" 
and inserting "$3,400,000,000". 
SEC. 8. Title I I of the National Housing Act, as amended, is hereby 
amended by adding at the end thereof the following new section: 
"SEC. 219. Notwithstanding limitations contained in any other sec-
tions of this Act as to the use of moneys credited to the Title I Housing 
Insurance Fund, the Housing Insurance Fund, the War Housing In-
surance Fund, the Housing Investment Insurance Fund, the Military 
Housing Insurance Fund, or the Defense Housing Insurance Fund, 
the Commissioner is hereby authorized to transfer funds from any 
one or more of such Insurance Funds to any other such Fnnd in such 
amounts and at such times as the Commissioner may determine, taking 
into consideration the requirements of such Funds, separately and 
jointly to carry out effectively the insurance programs for which such 
Funds were established." 
SEO. 9. Title V of the National Housing Act, as amended, is hereby 
amended by adding at the end thereof the following new section: 
"SEC. 516. The following funds shall be deemed an indebtedness to 
the United States of the particular insurance fund involved, and the 
Commissioner is authorized and directed to pay the amount of such 
indebtedness to the Secretary of the Treasury, with simple interest 
thereon from the date the funds were advanced to the date of final 
payment at a rate determined by the Secretary of the Treasury, taking 
into consideration the average rate on outstanding marketable obli-
gations of the United States from the date the funds were advanced 
until the date of final payment— 
" (1) funds made available to the Commissioner pursuant to the 
provisions of sections«4 and 202, exclusive of amounts heretofore 
refunded, (a) for carrying out title I I with respect to mortgages 
insured under section 203 where such funds were credited to the 
general reinsurance account in the Mutual Mortgage Insurance 
Fund, and (b) for the payment of salaries and expenses with 
respect to mortgage insurance under sections 207 and 210 where 
such funds were credited to the Housing Insurance Fund; 
"(2) funds made available to the Commissioner pursuant to 
sections 602 and 802; and 
65 Stat. 314. 
12 u s e 1713. 
C o op er atiV e 
housing insurance. 
64 Stat. 54. 
12 u s e 1715e. 
Mortgage insur-
ance a u t h o r i z a -
tion. 
66 Stat. 601. 
12 u s e 1715h. 
Transfer of in-
surance funds. 
P a y m e n t 
to 
Treasury. 
12 u s e 
1 7 0 5 , 
1708. 
12 u s e 1709. 
12 u s e 
1 7 1 3 , 
1715a note. 
12 u s e 
1 7 3 7, 
1748a. 
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PUBLIC LAW 94-JUNE 30, 1953 
[67 S T A T 
12 use 174 71. 
Military housing. 
12 use 1748b. 
P h y s i c a l im-
provement 
certifi-
'Actual cost". 
12 use 1750g. 
Critical areas. 
12 use 1750b. 
"(3) funds made available to the Commissioner by the Secre-
tary of the Treasury pursuant to section 710. 
"Payments to the Secretary of the Treasury under this section shall 
be made in such amounts and at such times as the Commissioner de-
termines, after consultations with the Secretary of the Treasury, that 
funds are available for that purpose, taking into consideration the con-
tinued solvency of the funds involved. 
All payments made pursuant 
to this section shall be covered into the Treasury as miscellaneous 
receipts." 
SEC. 10. (a) Section 803 (a) of the National Housing Act, as 
amended, is hereby amended by striking "1953" and inserting "1954". 
(b) Section 803 (b) of the National Housing Act, as amended, is 
hereby amended by inserting immediately preceding the last paragraph 
thereof the following new paragraph: 
"The mortgagor shall agree (i) to certify, upon completion of the 
physical improvements on the mortgaged property or project and prior 
to final endorsement of the mortgage, either (a) that the amount of the 
actual cost to the mortgagor of said physical improvements (exclusive 
of off-site public utilities and streets and of organization and legal 
expenses) equaled or exceeded the proceeds of the mortgage loan or 
(b) the amount by which the proceeds of the mortgage loan exceeded 
the actual cost to the mortgagor of said physical improvements (ex-
clusive of off-site public utilities and streets and of organization and 
legal expenses) as the case may be, and (ii) to pay, within sixty days 
after such certification, to the mortgagee, for application to the re-
duction of the principal obligation of such mortgage, the amount, if 
any, so certified to be m excess of such actual cost. 
The Commissioner 
shall construe the term 'actual cost' in such a manner as to reduce same 
by the amount of any kickbacks, rebates, and normal trade discounts 
received in connection with the construction of the said physical im-
provements, and to include only the actual amounts paid for labor and 
materials and necessary services in connection therewith." 
(c) The first sentence of the last paragraph of sections 803 (b) and 
908 (b) of the National Housing Act, as amended, is hereby amended 
by striking out "4 per centum" and inserting "41/2 per centum". 
SEC. 11. Section 903 (a) of the National Housing Act, as amended, 
is hereby amended by inserting the following proviso after the first 
proviso of said section: ": Provided further., That in the event the 
Commissioner has issued a commitment to insure a mortgage under 
section 903 of this title, which commitment was in force and effect on 
June 1, 1953, and the Commissioner determines that, because of 
changes in defense requirements, there is reasonable doubt that such 
housing is needed for defense purposes and that it is probable that the 
mortgage would become immediately in default and claim made for 
payment under the mortgage insurance contract if the unit or units 
are completed and the mortgage insured, the Commissioner is author-
ized, in the interest of conserving the National Defense Housing In-
surance Fund, to pay (in cash from the National Defense Housing 
Insurance Fund) to the mortgagee for the account of the mortgagor 
such amount as the Commissioner shall determine to be necessary to 
reimburse the mortgagor the amounts paid or to be paid by the 
mortgagor on account of labor performed and materials in place, less 
the Commissioner's estimate of the reasonable salvage value of such 
materials, plus an allowance for development costs equal to 4 per 
centum of the principal amount of the mortgage specified in such 
commitment, and no payments shall be made pursuant to this proviso 
unless a claim therefor is filed not later than six months from date 
of the determination of lack of need and the claim is in such form and 
67 S T A T . ] 
PUBLIC LAW 94-JUNE 30, 1953 
125 
contains such supporting information, documents, and data as the 
Commissioner may require". 
SEC. 12. Subparagraph (E) of section 301 (a) (1) of the National 
Housing Act, as amended, is hereby amended— 
(1) by striking "unpaid principal balance thereof" and inserting 
"principal amount to be paid therefor"; 
(2) by striking "aggregate amount" and inserting "aggregate 
principal amount"; and 
(3) by striking everything after the colon and inserting: "Pro-
mded^ That the foregoing clause (2) shall not apply to (nor shall 
any terms therein include) any defense or disaster mortgages as 
defined in subparagraph (G) : Provided further^ That, in lieu of or 
in conjunction with the other requirements with respect to mort-
gages covered by the aforesaid clause (2), and also with respect to 
any defense or disaster mortgages as defined in subparagraph (G), 
the Association may (in the discretion of its Board of Directors, and 
notwithstanding the provisions of subparagraph (G)) issue a pur-
chase contract (which shall not be assignable or transferable except 
with the consent of the Association) in an amount not exceeding 
the amount of the sale of mortgages purchased from the Associa-
tion, entitling the holder thereof to sell to the Association mort-
gages in the amount of the contract, upon such terms and conditions 
as the Association may prescribe: And provided further^ That the 
authority of the xlssociation to issue purchase contracts hereunder 
shall expire July 1, 1954, and the aggregate amount of such pur-
chase contracts issued shall not exceed $500,000,000; and". 
SEC. 13. (a) The first sentence of subparagraph (G) of section 301 
(a) (1) of the National Housing Act, as amended, is hereby amended 
by striking "1953" and inserting "1954". 
(b) The first sentence of section 302 of the National Housing Act, as 
amended, is hereby amended by changing the colon to a period, and by 
deleting the proviso. 
SEC. 14. Public Law 243, Eighty-second Congress, is hereby amended 
by striking "June 29, 1951" and inserting "September 1,1953", and by 
changing the period at the end thereof to a colon and adding the fol-
lowing: '"''And provided further^ That subparagraph (C) of section 
301 (a) (1) of the National Housing Act, as amended, shall have no 
application with respect to any mortgage which otherwise qualifies 
hereunder if such mortgage is the subject of a commitment to be made 
by the Association and covers housing in which the number of rooms 
equals or exceeds six for each family unit and in which the number 
of bedrooms equals or exceeds three for each family unit." 
SEC. 15. Section 101 (a) of the Defense Housing and Community 
Facilities and Services Act of 1951, as amended, is hereby amended 
by striking ", III, or IV" and inserting "or III". 
SEC. 16, Section 104 of the Defense Housing and Community Facili-
ties and Services Act of 1951, as amended, is hereby amended— 
(1) by inserting before the first sentence of said section "After 
June 30, 1953, no construction of permanent housing may be begun 
under title I I I of this Act."; 
(2) by striking out "1953" in the first place where it appears in 
said section and inserting "1954"; 
(3) by striking out "housing" in clause (b) and inserting "tem-
porary housing"; 
(4) by striking out clause (c) ; and 
(5) by relettering clause (d) as clause (c). 
SEC. 17. Section 305 (c) of the Defense Housing and Community 
P'acilities and Services Act of 1951, as amended, is hereby amended by 
striking "June 30,1953" and inserting "June 30,1954". 
F ederal National 
Mortgage Associa-
tion. 
66 Stat. 602. 
12 u s e 1716. 
64 Stat. 57. 
66 Stat. 602. 
12 u s e 1717. 
e o o p e r a t i v e 
housing. 
65 Stat. 699. 
12 use 1716-1. 
65 Stat. 293. 
42 use 1591. 
42 u s e 1591c. 
42 use 1592d. 
27000 O - ^3 - 11 
126 
PUBLIC LAW 94-JUNE 30, 1953 
[67 ST A T . 
42 use 1592n. 
Repeal. 
42 u s e 159 3-
1593d. 
64 Stat. 822; 
Stat. 144. 
s o u s e 
app 
2166. 
65 
s o u s e 
2131-2136. 
app. 
HOLe, dissolu-
tion. 
48 Stat. 129. 
12 use 1463. 
SEC. 18. Section 315 (e) of the Defense Housing and Community 
Facilities and Services Act of 1951, as amended, is amended by strik-
ing out the word "or" immediately before "(3)", and by inserting 
before the period at the end thereof a comma and the following: "or 
(4) the provision of community facilities or services necessary to the 
health, safety, or public welfare of the inhabitants of a town or com-
munity which has been relocated as a result of the acquisition (through 
eminent domain or purchase in lieu thereof) of its former site by or on 
behalf of the Atomic Energy Commission for 
national-defense 
activities". 
SEC. 19. Title IV of the Defense Housing and Community Facilities 
and Services Act of 1951, as amended, is hereby repealed. 
SEC. 20. Section 717 (c) of the Defense Production Act of 1950, as 
amended, is hereby amended by inserting the following new para-
graph at the end thereof: 
"Notwithstanding any other provision of this Act, the termination 
of title VI or any section thereof shall not be construed as affecting 
any obligation, condition, liability, or restriction arising out of any 
agreement heretofore entered into pursuant to, or under the authority 
of, section 602 or section 605 of this Act, or any issuance thereunder, 
by any person or corporation and the Federal Government or any 
agency thereof relating to the provision of housing for defense workers 
or military personnel in an area designated as a critical defense 
housing area pursuant to law." 
SEC. 21. (a) The Home Owners' Loan Corporation created pursuant 
to section 4 of the Home Owners' Loan Act of 1933, as amended 
(referred to in this section as the "Corporation"), shall cease to exist 
and shall for all purposes be considered dissolved and abolished, 
except as otherwise provided in this section, one hundred and eighty 
days after the date the Home Loan Bank Board publishes in the 
Federal Register a notice to that effect, which shall also contain 
information as to the time for, and manner of, filing claims against 
the Corporation. The period of time prescribed for the filing of such 
claims shall be the ninety days immediately following the date of 
publication of the notice, and all creditors and claimants who have 
not presented their claims or demands within that period shall be 
forever barred from presenting or prosecuting the same, and any 
creditor or claimant who has not instituted suit within sixty days 
from the date his claim or demand is rejected b^^ the Corporation shall 
be forever barred. 
(b) With respect to any action, suit, or other legal proceeding 
commenced against the Corporation prior to the date of its dissolution, 
the Corporation shall continue a body corporate for the purpose of 
defending such suit and for no other purpose, and service of subpena 
or other process in such proceeding may be made upon the Corporation 
by serving the same on the Secretary to the Home Loan Bank Board. 
(c) Effective as of the date of the dissolution of the Corporation, 
(1) the title to any and all real property remaining in the Corporation 
on such date is transferred to the United States of America, (2) 
authority is given to the Home Loan Bank Board to sell and convey 
such property in the name of the United States of America for such 
cash consideration as such Board shall deem reasonable, and (3) all 
powers of the Corporation with respect to the execution of any instru-
ments or documents affecting title to real estate or with respect to 
authorizing satisfactions of judgments are transferred to such Board. 
Any such instruments or documents executed by the Secretary or an 
Assistant Secretary to such Board on behalf of the Board shall be as 
effective as if the same had been executed by the Corporation prior to 
its dissolution. Subject to the approval of the Director of the Bureau 
67 S T A T . ] 
PUBLIC LAW 94-JUNE 30, 1953 
127 
of the Budget, such Board may transfer to any other department or 
agency of the United States, with the consent of such department or 
agency, all the powers and functions vested in such Board by this 
subsection (c). All liens held by the Corporation upon real or personal 
property on account of judgments rendered in its favor, except judg-
ments for mortgage debts which have been assigned by the Corpora-
tion, and all claims now held by the Corporation arising out of its 
mortgage or real estate operations, whether for rent or otherwise, are 
hereby released and discharged in full. 
(d) The authority to appropriate for any functions relating to the 
Corporation may continue to be exercised after its dissolution for the 
purpose of making appropriations to any department or agency 
carrying out the provisions of this section. 
SEC. 22. Subsection (e) of section 106 of the Housing Act of 1949 
(42 U. S. C. 1456 (e)), is amended by inserting before the period at the 
end thereof a colon and the following: '"''Provided^ That the Adminis-
trator, without regard to such limitation, may enter into contracts 
for capital grants aggregating not to exceed $35,000,000 (subject to 
the total authorization provided in section 103 (b) of this title) 
with local public agencies in States where more than two-thirds of the 
maximum capital grants permitted in the respective State under this 
subsection has been obligated". 
SEC. 23. Section 504 of the Housing Act of 1950, as amended, is 
hereby amended to read as follows: 
"SEC. 504. With respect to housing built or sold with assistance 
provided under the National Housing Act, as amended, or title I I I 
of the Servicemen's Readjustment Act of 1944, as amended, the 
Federal Housing Commissioner and the Administrator of Veterans' 
Affairs, respectively, are hereby specifically authorized and directed 
to issue such regulations, applicable uniformly to all classes of mort-
gagees, as they determine desirable for the purpose of limiting the 
charges and fees, which shall not be construed to include any loss 
suffered by an originating lender in the bona fide sale or pledge of or 
an agreement to sell the mortgage, imposed upon the builder or other 
seller, or the veteran or other purchaser in connection with the 
financing of the construction or sale of such housing, whether or not 
such charges were or are imposed in connection with the financing 
assisted by the Federal Government, and no loan shall be insured or 
guaranteed under such Acts unless the mortgagee certifies that it 
has not imposed upon the builder or other seller, or the veteran or other 
purchaser any charges or fees in connection with the financing of the 
construction or sale of such housing in excess of the charges or fees 
permitted under such regulations for such purposes as are applicable 
to the housing involved." 
SEC. 24. (a) The first sentence of paragraph (g) of section 110 of 
the Housing Act of 1949, as amended, is hereby amended to read as 
follows: " 'Going Federal rate' means (with respect to any contract 
for a loan or advance entered into after the first annual rate has been 
specified as provided in this sentence) the annual rate of interest which 
the Secretary of the Treasury shall specify as applicable to the six-
month period (beginning with the six-month period ending December 
31,1953) during which the contract for loan or advance is made, which 
applicable rate for each six-month period shall be determined by the 
Secretary of the Treasury by estimating the average yield to maturity, 
on the basis of daily closing market bid quotations or prices during 
the month of May or the month of Novemoer, as the case may be, next 
preceding such six-month period, on all outstanding marketable 
obligations of the United States having a maturity date of fifteen or 
more years from the first day of such month of May or November, and 
Ccq>ital grants. 
63 Stat. 419. 
42 use 1453. 
64 Stat. 81. 
12 use 1701J. 
C harg e s 
and 
fees. 
12 u s e 
1701 
note; 38 USC 694 
et seq. 
"Going Federal 
rate •'. 
63 Stat. 421. 
42 USC 1460. 
128 
PUBLIC LAW 94-JUNE 30, 1953 
[67 S T A T 
Loans to educa-
tional institutions. 
64 Stat. 78. 
12 u s e 1749. 
63 Stat. 426. 
42 u s e 1402. 
Low-rent hous-
ing. 
"Going Federal 
rate'*. 
Hawaii. 
12 u s e 1715d. 
63 Stat. 58. 
48 u s e 484e. 
12 u s e 1716. 
A l a s k a , Guam 
and Hawaii. 
12 u s e 1715d. 
by adjusting such estimated average annual yield to the nearest 
one-eighth of one per centum." 
(b) The third sentence of section 401 (a) of the Housing Act of 
1950, as amended, is hereby amended to read as follows: "A loan to an 
educational institution may be in an amount not exceeding the total 
development cost of the housing, as determined by the Administrator; 
shall be secured in such manner and be repaid within such period, not 
exceeding forty years, as may be determined by him; and, with respect 
to loan contracts entered into after the first minimum annual rate has 
been specified as provided herein, shall bear interest at a rate 
determined by the Administrator which shall be not less than the 
minimum annlial rate which the Secretary of the Treasury shall 
specify as applicable to the six-month period (beginning with the six-
month period ending December 31, 1953) during which the contract 
for the loan is made: Provided^ That such minimum annual rate for 
each six-month period shall be determined by the Secretary of the 
Treasury by estimating the average yield to maturity, on the basis of 
daily closing market bid quotations or prices during the month of 
May or the month of November, as the case may be, next preceding 
such six-month period, on all outstanding marketable obligations of 
the United States having a maturity date of fifteen or more years 
from the first day of such month of May or November, and by adjust-
ing such estimated average annual yield to the nearest one-eighth of 
one per centum." 
(c) Section 2, paragraph 10, of the United States Housing Act of 
1937, as amended, is hereby amended by inserting after the words 
'•''Provided^ That" the following: ", with respect to any loans or annual 
contributions made pursuant to a contract approved by the President 
after the first annual rate has been specified as provided in this proviso, 
the term 'going Federal rate' means the annual rate of interest which 
the Secretary of the Treasury shall specify as applicable to the six-
month period (beginning with the six-month period ending December 
31, 1953) during which the contract is approved by the President, 
which applicable rate for each six-month period shall be determined 
by the Secretary of the Treasury by estimating the average yield to 
maturity, on the basis of daily closing market bid quotations or prices 
during the month of May or the month of November, as the case may 
be, next preceding such six-month period, on all outstanding market-
able obligations of the United States having a maturity date of fifteen 
or more years from the first day of such month of May or November, 
and by adjusting such estimated average annual yield to the nearest 
one-eighth of one per centum: And. provided further. That". 
SEC. 25. (a) Section 214 of the National Housing Act, as amended, 
is hereby amended by inserting the words "or Hawaii" after the word 
"Guam" in each place where it appears therein. 
(b) Section 2 (b) of Public Law 52, Eighty-first Congress, is hereby 
amended by adding at the end thereof the following new paragraph: 
"Notwithstanding the provisions of subparagraph (C) of section 
301 (a) (1) of the National Housing Act, as amended, any mortgage 
loans may be offered to the Federal National Mortgage Association 
for purchase if such loans are secured by property located in Guam 
or Hawaii, and insured under any of the provisions of the National 
Housing Act, as amended." 
(c) Section 214 of the National Housing Act, as amended, is hereby 
amended— 
(1) by striking from the last sentence of said section the words 
"Upon application by the mortgagee," and inserting in lieu thereof 
the words: "Upon application by the mortgagee (1) where the 
67 
S T A T . ] 
PUBLIC LAW 95-JUNE 30, 1953 
129 
mortgagor is regulated or restricted pursnant to the last sentence 
of this section or (2)"; and 
(2) by adding the following new sentence at the end of said sec-
tion : "Without limiting the authority of the Commissioner under 
any other provision of law, the Commissioner is hereby authorized, 
with respect to any mortgagor in such case (except where the Alaska 
Housing Authority is the mortgagor or mortgagee), to require the 
mortgagor to be regulated or restricted as to rents or sales, charges, 
capital structure, rate of return, and methods of operation to such 
an extent and in such manner as the Commissioner determines 
advisable to provide reasonable rentals and sales prices and a rea-
sonable return on the investment." 
Approved June 30, 1953. 
Public Law 95 
CHAPTER 171 
AN ACT 
June 30, 1953 
To provide authority for temporary economic controls, and for other purposes. 
[S. 108I] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Defense Production Act Amendments of 1953". 
SEC. 2. Section 2 of the Defense Production Act of 1950, as amended, 
is amended to read as follows: 
Defense Produc-
tion Act Amend-
ments of 1953. 
64 Stat. 798. 
5 0 u s e 
app. 
2062. 
'DECLARATION OF POLICY 
"SEC. 2. In view of the present international situation and in order 
to provide for the national defense and national security our mobiliza-
tion effort continues to require some diversion of certain materials and 
facilities from civilian use to military and related purposes. 
It also 
requires expansion of productive facilities beyond the levels needed to 
meet the civilian demand." 
SEC. 3. Section 101 of the Defense Production Act of 1950, as 
amended, is amended to read as follows: 
"SEC. 101. (a) The President is hereby authorized (1) to require 
that performance under contracts or orders (other than contracts of 
employment) which he deems necessary or appropriate to promote the 
national defense shall take priority over performance under any other 
contract or order, and, for the purpose of assuring such priority, to 
require acceptance and performance of such contracts or orders in 
preference to other contracts or orders by any person he finds to be 
capable of their performance, and (2) to allocate materials and facili-
ties in such manner, upon such conditions, and to such extent as he shall 
deem necessary or appropriate to promote the national defense. 
"(b) The powers granted in this section shall not be used to control 
the general distribution of any material in the civilian market unless 
the President finds (1) that such material is a scarce and critical 
material essential to the national defense, and (2) that the require-
ments of the national defense for such material cannot otherwise be 
met without creating a significant dislocation of the normal distribu-
tion of such material in the civilian market to such a degree as to create 
appreciable hardship." 
SEC. 4. Subsection (a) of section 301 of the Defense Production 
Act of 1950, as amended, is amended by striking out", or in connection 
with or in contemplation of the termination," and by inserting before 
the period at the end thereof a comma and the following: "or for the 
purpose of financing any contractor, subcontractor, or other person in 
5 0 U S C a p p . 
2071. 
P r i o r itie s 
allocations. 
and 
Restriction. 
5 0 U S C 
2091.