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missioner's estimate of the fair market value of such land prior to the beginning of construction shall be added to the total cost shown in the certificate.

(b) Land held under leasehold, Where the land included in the mortgage security is held by the mortgagor under a leasehold, the expense of acquiring the leasehold may be added to the aggregate amount shown in the certificate of actual costs. The amount added shall be limited to the Commissioner's estimate, prior to the beginning of construction, of the fair market value of the leasehold or other interest. § 1100.160 Adjustment of cost-reha.

bilitation. In the case of repair or rehabilitation, in order to give effect to land value, the aggregate amount shown in the certificate of actual costs shall be adjusted, prior to final endorsement, as follows:

(a) Property already owned. Where no part of the proceeds of the mortgage is to be used to finance the purchase of the land or the existing improvements, the mortgage shall be reduced to an amount which does not exceed 100 percent of the actual costs (as approved by the Commissioner) of the repair or rehabilitation.

(b) Property subject to existing mortgage. Where the proceeds of the mortgage are to be used to refinance an existing mortgage, there shall be added to the actual costs of the repair or rehabilitation the lesser of the following:

(1) The amount of the existing mortgage.

(2) 90 percent of the Commissioner's estimate (prior to repair or rehabilitation) of the fair market value of the land and existing improvements.

(c) Property to be acquired. Where the proceeds are to be used to finance the purchase of the land and existing improvements in addition to financing the repair or rehabilitation, there shall be added to the actual costs of the repair or rehabilitation the lesser of the following:

(1) The purchase price of the land and existing improvements.

(2) The Commissioner's estimate (prior to repair or rehabilitation) of the fair market value of the land and existing improvements.

$ 1100.162 Reduction in mortgage

amount. If the principal amount of the mortgage exceeds the total shown by the certificate of actual costs, after adjustment as provided in $ $ 1100.157 and 1100.160, the mortgage shall be reduced by the amount of such excess prior to final insurance endorsement. $ 1100.165 Effect of agreement.

Any agreement, undertaking, statement, or certification required by the Commissioner in connection with the certificate of actual costs shall specifically state that it has been made, presented, and delivered for the purpose of influencing an official action of the Commissioner and that it may be relied upon as a true statement of the facts contained therein. § 1100.167 Cost certification incontest

able. Upon the Commissioner's approval of the mortgagor's certification of actual costs, such certification shall be final and incontestable, except for fraud or material misrepresentation on the part of the mortgagor.

TITLE $ 1100.180 Eligibility of title.

In order for the mortgaged property to be eligible for insurance, the Commissioner shall determine that marketable title thereto is vested in the mortgagor as of the date the mortgage is filed for record. The title evidence shall be examined by the Commissioner and the original endorsement of the credit instrument for insurance shall be evidence of its acceptability. $ 1100.182 Title evidence.

Upon insurance of the mortgage, the mortgagee shall furnish to the Commissioner a survey of the mortgaged property, satisfactory to him, and a policy of title insurance covering such property, as provided in paragraph (a) of this section. If, for reasons the Commissioner deems satisfactory, title insurance cannot be furnished, the mortgagee shall furnish such evidence of title in accordance with paragraph (b) or (c) of this section, as the Commissioner may require. Any survey, policy of title insur

ince, or evidence of title required under his section shall be furnished without spense to the Commissioner. The types { title evidence are: (a) A policy of title insurance issued \ a company and in a form satisfactory o the Commisioner. The policy shall ame as the insureds the mortgagee and he Secretary of Housing and Urban levelopment, as their respective interits may appear. The policy shall prode that upon acquisition of title by the ortgagee or the Secretary, it will beome an owner's policy running to the ortgagee or the Secretary, as the case

ay be.

(b) An abstract of title satisfactory to de Commissioner, prepared by an abract company or individual engaged the business of preparing abstracts title, accompanied by a legal opinion Atisfactory to the Commission as to the uality of such title, signed by an attorv at law experienced in the examinaon of titles. (c) A Torrens or similar title certifate. 2 F.R. 6571, Apr. 28, 1967, as amended at |F.R. 16086, Nov. 1, 1968] ACILITIES FOR OLDER DECLINING AREAS 1 1100.185 Eligibility of mortgages cov

ering facilities in certain neighbor

hoods. (a) A mortgage financing the repair, habilitation or construction of a group tactice facility located in an older deining urban area shall be eligible for surance under this subpart subject to Impliance with the additional requirelents of this section. (b) The mortgage shall meet all of be requirements of this subpart, except ich requirements (other than those reAting to labor standards and prevailing lages) as are judged to be not applicable n the basis of the following determinaons to be made by the Commissioner: (1) That the conditions of the area in hich the property is located prevent he application of certain eligibility reuirements of this subpart.

(2) That the area is reasonably viable, and there is a need in the area for an adequate group practice facility to serve low and moderate income families.

(3) That the mortgage to be insured is an acceptable risk.

(c) Mortgages complying with the requirements of this section shall be insured under this subpart pursuant to section 223(e) of the National Housing Act. Such mortgages shall be insured under and be the obligation of the Special Risk Insurance Fund. (35 F.R. 289, Jan. 8, 1970] $ 1100.249 Effect of amendments.

The regulations in this subpart may be amended by the Commissioner at any time and from time to time, in whole or in part, but such amendment shall not adversely affect the interests of a mortgagee or lender under the contract of insurance on any mortgage or loan already insured and shall not adversely affect the interests of a mortgagee or lender on any mortgage or loan to be insured on which the Commissioner has made a commitment to insure. [33 F.R. 11170, Aug. 7, 1968] Subpart B-Contract Rights and

Obligations $ 1100.251 Incorporation by reference.

(a) All of the provisions of $$ 207.251 et seq. (Part 207, Subpart B) of this chapter, relating to mortgages insured under section 207 of the National Housing Act, apply to a mortgage covering a group practice facility insured under title XI of such Act.

(b) For the purposes of this subpart, all references in Part 207 of this chapter to section 207 of the Act shall be construed to refer to title XI of the Act.

(c) All of the definitions in § 1100.1 shall apply to this subpart. In addition, as used in this part, the term “contract of insurance" means the agreement evidenced by the Commissioner's insurance endorsement and includes the provisions of this subpart and of the Act. 132 F.R. 6571, Apr. 28, 1967, as amended at 33 F.R. 11170, Aug. 7, 1968)

235 F.R. 289, Jan. 8, 1970.




00 General procedural provisions. 20 Low-rent housing program. 40 College housing program.

BREVIATIONS: The following abbreviations are used in this chapter:

FHA=Federal Housing Administration. HHFA=Housing and Home Finance Agency. PHA=Public Housing Administration. HUD=Housing and Urban Development.




00.1 Availablity of records and informa

tion. 00.4 Testimony or production of records

by employees of the PHA. 100.5 Representative appearances before

the PHA of former Government

employees. 100.6 Complaint procedures; equal oppor

tunity in housing. 300.7 Complaint procedure; nondiscrimi

nation in low-rent public housing. AUTHORITY: The provisions of this Part 1500 sued under sec. 8, 50 Stat. 891, as amended;

U.S.C. 1408, except as otherwise noted. 1500.1 Availability of

records and information. Regulations of the Department of Lousing and Urban Development providng where and how the Department's ecords and information may be obtained ire found in Part 15 of Subtitle A of this

(1) "Testify" means to testify in administrative or court proceedings with respect to information obtained by & PHA employee in the course of the performance of his oficial duties.

(2) "Records” means any oficial files, documents, or other records of the PHA.

(3) "Produce records” means to produce records in administrative or court proceedings. The procedure set forth in this section does not relate to attachment or garnishment proceedings involving debtor-employees of the PHA (19 F.R. 1851).

(b) Approval to testify or produce records. No employee of the PHA shall testify or produce records, whether pursuant to subpoena or subpoena duces tecum or otherwise, without the prior approval of the appropriate oficial designated below:

(1) The Deputy Commissioner is authorized to grant such approval in all cases.

(2) The Regional Director is authorized to grant such approval with respect to Regional Office and project employees under his jurisdiction and with respect to records in the Regional or project offices under his jurisdiction.


(82 F.R. 13808, Oct. 4, 1967) 1500.4 Testimony or production of

records by employees of the PHA. (a) Definitions and scope. For purposes of this section, the term:

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(c) Submission of affidavit. (1) Before approval to testify or to produce

unless approved in accordance with th pl records will be granted, the litigant or

section, and that no affidavit has been

submitted in accordance with this sect other party in interest or his attorney shall submit an affidavit setting forth

tion, or that action by the approving of Com

cer on such an affidavit is still pendin dhe the nature of the proceeding, the admin- as the case may be. istrative body or court before which the proceeding is being conducted, the

(3) Whenever the approving ofio parties involved, the interest of the party

has declined to grant approval to test to

to to produce records, as to all or pet-file seeking the information and/or records, of the matters covered by a subpoen set the matters with respect to which the the employee shall, unless otherwise it is a testimony of the officer or employee is structed by the approving officer, appe de desired and/or identification of the records sought to be produced, facts as

in response to the subpoena and, want to the service of any process compelling

the respect to those matters for whit-rent

approval has not been granted, respec molatsuch testimony or requiring the produc- fully decline to testify or to produce re e of tion of records including the time and ords on the grounds that such action visio place of appearance designated in such prohibited unless approved in accort from process, and any other pertinent facts. ance with this section and that sucacit

(2) In cases where the testimony of a Regional Office or project employee or

approval has been refused.

[21 F.R. 4047, June 13, 1956. Redesignat i ar the production of Regional Office or at 26 F.R. 7341, Aug. 12, 1961] project records is desired, the affidavit shall be submitted to the appropriate

$ 1500.5 Representative appearances Regional Attorney. In cases where the

fore the PHA of former Governme testimony of a Central Office employee

employees. or the production of Central Office rec

(a) Authorization to appear in repr ords is desired, the affidavit shall be sub

sentative capacity. No former officer mitted to the General Counsel.

employee of the United States or anyor (3) Approval to testify or to produce

knowingly acting on behalf of or und records will, in all cases, be limited to

the direct supervision of such person

, the matters set forth in the affidavit, or

may, within a period of two years afte to such portions thereof as the PHA ap

the termination of such employment, an proving officer may deem consistent with

pear in a representative capacity the public interest.

the PHA unless, in each matter, he (d) Appearances by PHA employees.

tains prior approval as prescribed hen (1) Whenever a PHA employee is served

in. The term "representative capacity

TE with a subpoena or is otherwise directed

shall mean the function of renderin or requested to testify or to produce rec

representative services to any person ords, he will notify the General Counsel

firm, corporation, or association. or the Regional Attorney, as the case

(b) Form of request. A request by may be, and if no affidavit has been sub

former officer
or employee

of the Unite, mitted, the General Counsel or the

states to appear in a representative ca. Regional Attorney will notify the litigant

pacity before the PHA shall be made or other party in interest or his attorney

letter, in duplicate, addressed to the that approval to testify or produce rec

Director of the Regional Office or heado ords cannot be granted unless an affi

the Central Office Division before whic davit is submitted in accordance with

such former officer or employee desire this section.

(2) Whenever a subpoena has been served and action by the approving off- mation: cer has not been taken prior to the time specified in the subpoena for appearance

(1) A brief description of his duties in response thereto (whether because

and functions while employed with the no affidavit was submitted or because ac

Government, and the duration of his tion by the approving official on the affi

employment. davit is pending), the employee shall,

(2) The subject and scope of the mat** unless otherwise instructed by the approving officer, appear in response to the

representative capacity. subpoena and respectfully decline to testify or to produce records on the grounds that such action is prohibited division, branch, or other unit in which

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(3) Whether the consideration of the matter would have devolved upon any

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