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.

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 incontestable.

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

ce, or evidence of title required under 5 section shall be furnished without ense to the Commissioner. The types itle evidence are:

a) A policy of title insurance issued a company and in a form satisfactory the Commisioner. The policy shall me as the insureds the mortgagee and Secretary of Housing and Urban elopment, as their respective inter= may appear. The policy shall proe that upon acquisition of title by the rtgagee or the Secretary, it will beme an owner's policy running to the tgagee or the Secretary, as the case ybe.

b) An abstract of title satisfactory to Commissioner, prepared by an abact company or individual engaged the business of preparing abstracts itle, accompanied by a legal opinion sfactory to the Commission as to the lity of such title, signed by an attorat law experienced in the examinaà of titles.

E) A Torrens or similar title certife.

F.R. 6571, Apr. 28, 1967, as amended at R. 16086, Nov. 1, 1968]

ILITIES FOR OLDER DECLINING AREAS 1

100.185 Eligibility of mortgages covering facilities in certain neighborhoods.

a) A mortgage financing the repair, abilitation or construction of a group ctice facility located in an older deing urban area shall be eligible for urance under this subpart subject to pliance with the additional requirets of this section.

The mortgage shall meet all of requirements of this subpart, except h requirements (other than those reng to labor standards and prevailing ges) as are judged to be not applicable the basis of the following determinaas to be made by the Commissioner: 1) That the conditions of the area in ch the property is located prevent application of certain eligibility rerements of this subpart.

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

(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.

[32 F.R. 6571, Apr. 28, 1967, as amended at 33 F.R. 11170, Aug. 7, 1968]

rt

00 General procedural provisions.

20 Low-rent housing program.

40 College housing program.

00.1 Availability of records and information.

00.4 Testimony or production of records by employees of the PHA.

00.5 Representative appearances before the PHA of former Government employees.

500.6 Complaint procedures; equal opportunity in housing.

500.7 Complaint procedure; nondiscrimination in low-rent public housing. AUTHORITY: The provisions of this Part 1500 sued under sec. 8, 50 Stat. 891, as amended; 2U.S.C. 1408, except as otherwise noted. 1500.1

Availability of records and

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

32 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:

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

(2) "Records" means any official 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 official 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.

(c) Submission of affidavit. (1) Before approval to testify or to produce records will be granted, the litigant or other party in interest or his attorney shall submit an affidavit setting forth the nature of the proceeding, the administrative body or court before which the proceeding is being conducted, the parties involved, the interest of the party seeking the information and/or records, the matters with respect to which the testimony of the officer or employee is desired and/or identification of the records sought to be produced, facts as to the service of any process compelling such testimony or requiring the production of records including the time and place of appearance designated in such process, and any other pertinent facts.

(2) In cases where the testimony of a Regional Office or project employee or the production of Regional Office or project records is desired, the affidavit shall be submitted to the appropriate Regional Attorney. In cases where the testimony of a Central Office employee or the production of Central Office records is desired, the affidavit shall be submitted to the General Counsel.

(3) Approval to testify or to produce records will, in all cases, be limited to the matters set forth in the affidavit, or to such portions thereof as the PHA approving officer may deem consistent with the public interest.

(d) Appearances by PHA employees. (1) Whenever a PHA employee is served with a subpoena or is otherwise directed or requested to testify or to produce records, he will notify the General Counsel or the Regional Attorney, as the case may be, and if no affidavit has been submitted, the General Counsel or Regional Attorney will notify the litigant or other party in interest or his attorney that approval to testify or produce records cannot be granted unless an affidavit is submitted in accordance with this section.

the

(2) Whenever a subpoena has been served and action by the approving officer has not been taken prior to the time specified in the subpoena for appearance in response thereto (whether because no affidavit was submitted or because action by the approving official on the affidavit is pending), the employee shall, unless otherwise instructed by the approving officer, appear in response to the subpoena and respectfully decline to testify or to produce records on the grounds that such action is prohibited

unless approved in accordance with th section, and that no affidavit has bee submitted in accordance with this se tion, or that action by the approving of cer on such an affidavit is still pendin as the case may be.

(3) Whenever the approving offic has declined to grant approval to testi to to produce records, as to all or par of the matters covered by a subpoen the employee shall, unless otherwise i structed by the approving officer, appe in response to the subpoena and, wit the respect to those matters for whi approval has not been granted, respec fully decline to testify or to produce re ords on the grounds that such action prohibited unless approved in accor ance with this section and that sum approval has been refused.

[21 F.R. 4047, June 13, 1956. Redesignat at 26 F.R. 7341, Aug. 12, 1961]

§ 1500.5 Representative appearances fore the PHA of former Governmer employees.

(a) Authorization to appear in repr sentative capacity. No former officer employee of the United States or anyon knowingly acting on behalf of or unde the direct supervision of such perso may, within a period of two years aft the termination of such employment, an pear in a representative capacity befor the PHA unless, in each matter, he ob tains prior approval as prescribed here in. The term "representative capacity shall mean the function of renderin representative services to any person firm, corporation, or association.

(b) Form of request. A request by former officer or employee of the Unite States to appear in a representative ca pacity before the PHA shall be made by letter, in duplicate, addressed to the Director of the Regional Office or head the Central Office Division before which such former officer or employee desire to appear. Each such request must sel forth, under oath, the following infor mation:

(1) A brief description of his duties and functions while employed with the Government, and the duration of his employment.

(2) The subject and scope of the mat ter in which he desires to appear in representative capacity.

(3) Whether the consideration of the matter would have devolved upon any division, branch, or other unit in which