12 U.S.C. § 1735f — Water and sewerage facilities

Page 789 TITLE 12—BANKS AND BANKING § 1735f–4 § 1735f. Water and sewerage facilities Notwithstanding any other provision of this chapter, no mortgage which covers new con- struction shall be approved for insurance under this chapter (except pursuant to a commitment made prior to August 10, 1965) if the mortgaged property includes housing which is not served by a public or adequate community water and sew- erage system: Provided, That this limitation shall be applicable only to property which is not served by a system approved by the Secretary pursuant to subchapter IX–A of this chapter, as such subchapter existed immediately before De- cember 15, 1989, and which is situated in an area certified by appropriate local officials to be an area where the establishment of public or ade- quate community water and sewerage systems is economically feasible: Provided further, That for purposes of this section the economic feasibility of establishing such public or adequate commu- nity water and sewerage systems shall be deter- mined without regard to whether such establish- ment is authorized by law or is subject to ap- proval by one or more local governments or pub- lic bodies. (June 27, 1934, ch. 847, title V, § 522, as added Pub. L. 89–117, title II, § 217(a), Aug. 10, 1965, 79 Stat. 473; amended Pub. L. 90–19, § 1(a)(3), May 25, 1967, 81 Stat. 17; Pub. L. 101–235, title I, § 133(d)(4), Dec. 15, 1989, 103 Stat. 2027.) Editorial Notes REFERENCES IN TEXT Subchapter IX–A of this chapter, referred to in text, was repealed by Pub. L. 101–235, title I, § 133(a), Dec. 15, 1989, 103 Stat. 2027. AMENDMENTS 1989—Pub. L. 101–235 inserted ‘‘, as such subchapter existed immediately before December 15, 1989,’’ after ‘‘subchapter IX–A of this chapter’’. 1967—Pub. L. 90–19 substituted ‘‘Secretary’’ for ‘‘Com- missioner’’. § 1735f–1. Waiver of deduction on assignment of property to Secretary in lieu of foreclosure Notwithstanding any other provision of this chapter, from and after November 3, 1966, the Secretary, under such terms and conditions as he may approve, may waive all or a part of the 1 per centum deduction otherwise made from in- surance benefits with respect to multifamily housing or land development mortgages as- signed to him, where the assignment is made at his request in lieu of foreclosure of the mort- gage. (June 27, 1934, ch. 847, title V, § 523, as added Pub. L. 89–754, title III, § 312, Nov. 3, 1966, 80 Stat. 1271.) § 1735f–2. Uniform rehabilitation standards for housing within and without urban renewal areas In determining whether properties should be approved by the Secretary prior to rehabilita- tion and covered by mortgages insured under subchapter II of this chapter, the Secretary shall apply uniform property standards as be- tween properties located outside urban renewal areas and those located within urban renewal areas. (June 27, 1934, ch. 847, title V, § 524, as added Pub. L. 91–609, title I, § 116, Dec. 31, 1970, 84 Stat. 1774.) § 1735f–3. Insurance of mortgage proceeds ad- vanced during construction or rehabilitation or prior to final endorsement of project mortgage The Secretary is authorized to insure mort- gage proceeds advanced during construction or rehabilitation or otherwise prior to final en- dorsement of a project mortgage for the purpose of (1) financing improvements to the property and the purchase of materials and building com- ponents delivered to the property, and (2) pro- viding funds to cover the cost of building compo- nents where such components have been assem- bled and specifically identified for incorporation into the property but are located at a site other than the mortgaged property, with such security as the Secretary may require. (June 27, 1934, ch. 847, title V, § 525, as added Pub. L. 93–383, title III, § 301, Aug. 22, 1974, 88 Stat. 676.) § 1735f–4. Minimum property standards (a) To the maximum extent feasible, the Sec- retary of Housing and Urban Development shall promote the use of energy saving techniques through minimum property standards estab- lished by him for newly constructed residential housing, other than manufactured homes, sub- ject to mortgages insured under this chapter. Such standards shall establish energy perform- ance requirements that will achieve a signifi- cant increase in the energy efficiency of new construction. Such requirements shall be imple- mented as soon as practicable after November 9, 1978. Following November 30, 1983, the energy performance requirements developed and estab- lished by the Secretary under this subsection for newly constructed residential housing, other than manufactured homes, shall be at least as effective in performance as the energy perform- ance requirements incorporated in the minimum property standards that were in effect under this subsection on September 30, 1982. (b) The Secretary may require that each prop- erty, other than a manufactured home, subject to a mortgage insured under this chapter shall, with respect to health and safety, comply with one of the nationally recognized model building codes, or with a State or local building code based on one of the nationally recognized model building codes or their equivalent. The Sec- retary shall be responsible for determining the comparability of the State and local codes to such model codes and for selecting for compli- ance purposes an appropriate nationally recog- nized model building code where no such model code has been duly adopted or where the Sec- retary determines the adopted code is not com- parable. (c) The Secretary may establish an exception to any minimum property standard established under this section in order to address alter- native water systems, including cisterns, which meet requirements of State and local building codes that ensure health and safety standards.