§ 1743.
(b)
Eligibility requirements
To be eligible for insurance under this section a mortgage shall meet the following conditions:
(1)
The mortgaged property shall be held by a mortgagor approved by the Secretary. The Secretary may, in his discretion, require such mortgagor to be regulated or restricted as to rents or sales, charges, capital structure, rate of return, and methods of operation. The Secretary may make such contracts with, and acquire for not to exceed $100 stock or interest in any such mortgagor, as the Secretary may deem necessary to render effective such restriction or regulation. Such stock or interest shall be paid for out of the General Insurance Fund, and shall be redeemed by the mortgagor at par upon the termination of all obligations of the Secretary under the insurance.
(2)
Preference or priority of opportunity in the occupancy of the mortgaged property for veterans of World War II and their immediate families, and for hardship cases as defined by the Secretary, shall be provided under such regulations and procedures as may be prescribed by the Secretary.
(3)
The mortgage shall involve a principal obligation in an amount—
(A)
not to exceed $5,000,000; and
(B)
not to exceed 90 per centum of the amount which the Secretary estimates will be the necessary current cost of the completed property or project, including the land; the proposed physical improvements; utilities within the boundaries of the property or project; architects’ fees; taxes and interest accruing during construction; and other miscellaneous charges incidental to construction and approved by the Secretary: Provided, That such mortgage shall not in any event exceed the amount which the Secretary estimates will be the cost of the completed physical improvements on the property or project, exclusive of off-site public utilities and streets, and organization and legal expenses: And provided further, That the principal obligation of the mortgage shall not, in any event, exceed 90 per centum of the Secretary’s estimate of the replacement cost of the property or project on the basis of the costs prevailing on December 31, 1947, for properties or projects of comparable quality in the locality where such property or project is to be located; and
(C)
not to exceed $8,100 per family unit for such part of such property or project as may be attributable to dwelling use.
The mortgage shall provide for complete amortization by periodic payment within such term as the Secretary shall prescribe, and shall bear interest (exclusive of premium charges for insurance) at not to exceed 4½ per centum per annum on the amount of the principal obligation outstanding at any time. The Secretary may consent to the release of a part or parts of the mortgaged property from the lien of the mortgage upon such terms and conditions as he may prescribe and the mortgage may provide for such release.
(g)
Mortgages in connection with sale of property under subchapter I, II, VIII, or X
([June 27, 1934, ch. 847], title VI, § 608, as added [May 26, 1942, ch. 319, § 11], [56 Stat. 303]; amended [Mar. 31, 1945, ch. 48, § 2], [59 Stat. 47]; [May 22, 1946, ch. 268, § 10(f)], (g), [60 Stat. 214]; [Aug. 10, 1948, ch. 832], title I, § 101(b), (c), [62 Stat. 1269]; [Apr. 20, 1950, ch. 94], title I, § 122, [64 Stat. 59]; [Sept. 1, 1951, ch. 378], title II, § 206, [65 Stat. 303]; [Pub. L. 89–117, title XI, § 1108(q)], Aug. 10, 1965, [79 Stat. 506]; [Pub. L. 90–19, § 1(a)(3)], (4), May 25, 1967, [81 Stat. 17].)