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FEDERAL RESERVE BANK
OF NEW YORK
E
REGULATION
CONSUMER
Circular N o . 2 7 3 1 1
December 2, 1943 J
W
CREDIT
DEFENSE HOUSING
To all Financial Institutions, Contractors Subject to Regulation W,
and Others Concerned, in the Second Federal Reserve District:
For your information, copies of the following are enclosed:
(1) General Order No. 60-4B, effective November 15, 1943, issued by the Administrator of
the National Housing Agency, delegating to any creditor or lender qualified as a registrant in
accordance with the provisions of Regulation W of the Board of Governors of the Federal
Reserve System, authority to designate any project for the remodeling or rehabilitation of an
existing structure as "defense housing" under certain circumstances specified in such order; and
(2) Form NHA 60-5 (Rev. 11/15/43) entitled "Application for Exemption from Regulation "W", for use in submitting information to enable the registrant to determine whether the
remodeling or rehabilitation project qualifies as "defense housing" under section 8(e) of
Regulation W.
Section 8(e) of Regulation W provides that the regulation shall not apply to any
extension of credit to remodel or rehabilitate any structure which the Administrator of the
National Housing Agency, or his authorized agent, shall designate as being for "defense
housing" as defined by the Administrator. Accordingly, Regulation W does not apply to
any extension of credit to remodel or rehabilitate any structure which shall have been
designated as being for "defense housing" in accordance with General Order No. 60-4B
of the Administrator of the National Housing Agency.
It will be appreciated if financial institutions will bring this matter to the attention of
persons making extensions of credit to remodel or rehabilitate existing structures.
Additional copies of this circular will be furnished upon request.
ALLAN SPROUL,
President.
NHA GENERAL ORDER NO. 60-4B
Note: Jflajor changes in NHA General Order No. 6 0 m a d e
this amendment are indicated below.
by
(1)
Section 3.02 has been deleted. Effective November 15,
1943, registrants may not authorize long terra credit
for any pVoject designed to maintain the habitability
of an occupied dwelling unit unless: (a) The project
has beon approved by WPB following the submission of
an application on Form WPB 2896, PD-105 or PD-200;- or
(b) the project is necessary to repair damage caused
by an act of God,
(2)
Subsection 3.03 has been renumbered Subsection 3iQ2
and the areas in which exemptions of disaster cases
may be made have been extended to include localities
in which priority assistance has been made available
to publicly financed war housing. Such projects were
formerly exemptible only in localities where priority
assistance had boon authorizod for privately financed
war housing.
(3)
Form NHA 60-5 has been revised. After November 15,
194-3, registrants will no longer be required to furnish a copy of the application form to the owner,
hence only 3 copies need be executed where 4 copies
were previously required.
O p e r a t i n g Manual
NATIONAL HOUSING AGENCY
Office
of
the
NHA GFNERAL ORDER N O . 6CU*B
(Supersedes NHA General Order 6Q-/tAP which should be destroyed)
Approved
10/25/43
Administrator
E f f e c t ive
ORIGINAL F I L E D
SUBJECT:
IN OFFICE
11/15/43
OF DIRECTOR,
ADM I H I S T R A T I V E
Administrator
RELATIONS
OtVISiOH
^
PUBLIC REGULATIONS - Delegating Authority to Creditors and Lenders to
Except Remodeling and Rehabilitation Credits from the Provisions of
Regulation -W.
(Applies to all persons designated as "registrants" under the provisions of Regulation W whc exercise the authority delegated herein)
SECTION 1
General
.01
Section 8 (e) of Regulation W (Revised May 6 , 1942) issued by the
Board of Governors of the Federal Reserve System, vests authority in the Administrator of the National Housing Agency, or his authorized agent, to exempt "any
extension of credit to remodel or rehabilitate any structure" from the provisions
of Regulation W by designating projects as "defense housing". The Administrators
authority to make such designation was delegated to qualified "registrants'-' in
National Housing Administrator's Order N o . 8 , dated June 1 9 , 1942, subject to
various conditions set forth in such Order. The purpose of the original General
Order N o . 60-4 was to supersede National Housing Administrator's Order N o . 8
with respect to all applications submitted to registrants on and after February 1 0 , 1943* The original Order was amended by General Order N o . 60-4A,
effective June 4> 1943 to permit the exemption of heating system repair projects during spring and summer, the purpose being to avoid overloading the
heating repair industry in the fall months.
SECTION" 2
Delegation of Authority
,01
Any application filed on or after November 15, 1943 with a registrant
for the purpose of designating any project as "defense housing" shall be governed
by the provisions set forth in this General Order*
.02
Pursuant to the authority vested in ae by Section 3 (e) of Regulation 7/
(Revised May 6 , 1942) issued by the Board of Governors of the Federal Reserve System, I do hereby delegate to any creditor or lender whq is qualified as a "registrant" in accordance with the provisions of Regulation W , authority to designate
any project for the remodeling or rehabilitation of an existing structure as "defense housing" when, after obtaining a signed statement on Form NHA 60-5 {Rev.), the
registrant finds that the proposed project satisfies the criteria set forth in
either Subsection 3.01 or 3.02 below.
SECTION 3
Projects Which May be Designated "Defense Housing"
.01
Registrants may designate as "defense housing" any housing projects
which have been allotted materials under the Controlled Materials Plan, or have
been granted priority assistance or authority to begin construction by the 7,ax
Production Board, for which allotment, assistance, or authority an application
was made on F o r m W P B 2896, PD-105, or PD-200.
Page 2 of 2
•02
Registrants may designate as "defense housing" any housing projects
which will help maintain the local housing supply through the reconstruction or
restoration of housing accommodations damaged or destroyed after December 31, 1941,
by fire, flood, tornado, earthquake, act of God or the public eneiny, but only
where such housing accommodations are located in a Private War Housing Priority
Locality, or a locality in -which priority assistance has been granted to publiclyfinanced war housing* (Information concerning such localities and their boundaries
can be obtained from local offices of the Federal Housing Administration.). Registrants may not designate projects as "defense housing" under the authority
granted in this Subsection where the purpose is to repair damage resulting from
age, abuse, or wear and tear*
SECTION 4
Responsibilities of Initial Creditors
•01
The initial creditor (the registrant who extends credit directly to
the owner) is responsible for determining that each proposed project falls fairly
within the criteria set forth in Subsections 3.01 and 3*02 above.
,02
The initial creditor shall retain a copy of each application (jforn 60-5
(Rev.)) covering a project which he designates as "defense housing" in accordance
with this Order and shall transmit: One legible duplicate copy of each such application to the Regional Office of the National Housing Agency for the area in
which tyie property covered by the application is located (jurisdiction and
address of such offices can be obtained from the nearest office of the Federal
Housing Administration); and, if the paper or debt is transferred to a secondary
creditor, one such copy to the secondary creditor*
SECTION 5
Responsibilities of Succeeding Creditors
•01
The secondary creditor, (any transferee who purchases or receives
the paper or debt) and each succeeding creditor, is entitled to rely upon the
statements appearing on the application form. No succeeding creditor shall purchase or receive the paper or debt when he knows that such statements are untrue,
or when the statements show on their face that the application should not have
been approved by a previous creditor*
•02
The secondary creditor and each succeeding creditor shall release
the application form to transferees who purchase or receive the paper or debt
from him.
SECTION 6
Forms
•01
ATI properly executed applications on Form NHA 60-5 received by
registrants prior to November 15* 1943 may
processed in accordance with
NHA General Order N o . 60-4A. On and after November 15, 1943 no applications
shall be accepted by registrants except on Form NHA 60-5 (Rev.).
NH 62280
FORM- NHA 60-5
<*•*. 11/10/43)
Form A p p r o v e d B u d g e t
Bureau M o . 6 3 - R 2 0 S . 1
Approval expires
J u n e 3 0 , 1944
APPLICATION FOR EXEMPTION FROM REGULATION W
UNITED STATES OF AMERICA
National Housing Agency
Remodeling or R e h a b i l i t a t i o n Which Will
Supply H o u s i n g in Private War Housing
P r i o r i t y Localities
This fora may be r e p r o d u c e d b £ anjr_j>rocess
SUBMIT T H R E E EXECUTED COPIES OF THIS FORM TO C R E D I T O R OR LENDER
The information requested on this form w i l l enable the creditor or lender to determine
w h e t h e r the remodeling or r e h a b i l i t a t i o n project qualifies as "defense housing" under
S e c t i o n 8 (e) of R e g u l a t i o n W . If the project covered b y this application w i l l require
the a p p l i c a n t to obtain one of the types of assistance from the War Production Board mentioned in Q u e s t i o n IV b e l o w , the order should be s e c u r e d before filing this form with the
.creditsc-Qr-lfeDdfiEi
I.
II.
N a m e of A p p l i c a n t
Address of A p p l i c a n t
S t r e e t and Number
III.
To»n or City
L o c a t i o n of S t r u c t u r e :
S t r e e t and H u i b « r
Town or City
County
IV.
State
Stat*
P r e v i o u s a p p r o v a l b y WPB:
a.
b.
Has a n a p p l i c a t i o n on -Form W P B 2 8 9 6 , P D - 1 0 0 , or
P D - 2 0 0 b e e n a p p r o v e d for a preference rating o r d e r ,
a C o n t r o l l e d Materials P l a n a l l o t m e n t , or for a u t h o r ity to commence construction?
Yes|
| Nol
|
If the answer to Q u e s t i o n IVa was " Y e s " , indicate
the type of government order w h i c h has b e e n received
for use in connection w i t h the r e m o d e l i n g or rehabilitation for w h i c h the c r e d i t involved in this a p p l i c a tion is d e s i r e d :
1.
A preference rating order b e a r i n g s e r i a l number
2.
A n a l l o t m e n t b e a r i n g s e r i a l number
u n d e r the C o n t r o l l e d M a t e r i a l s P l a n .
3.
A u t h o r i t y to b e g i n c o n s t r u c t i o n w h e r e the purchase
of n o c r i t i c a l m a t e r i a l is i n v o l v e d .
If the a n s w e r to Q u e s t i o n IVa is
" Y e s " , the a p p l i c a n t n e e d not
answer the remaining q u e s t i o n s on
[:::]
I
|
V.
VI.
D e s c r i b e In detail the p r o p o s e d w o r k to be d o n e , listing each item s e p a r a t e l y , and
g i v i n g an itemized statement of the total c o s t . Attach copies of any written es
timates or contracts that have been p r e p a r e d . Use additional sheets of 8" x 10£
paper if m o r e space is required:
W o r k P r o p o s e d to Restore D a m a g e or Loss From Fire or D i s a s t e r :
a.
Does the p r o j e c t involve the r e c o n s t r u c t i o n of accommodations d a m a g e d or destroyed by fire or other disaster
o c c u r r i n g after December 3 1 , 1941?
b.
No j D
If the answer is "Yes" check the cause of the damage belowi
c.
Note:
_
Yes
Fire
Tornado
L_.l
Other Act of God
Flood
Earthquake
[ID
The Public E n e m y
Is each item of repair listed under Question V necessary
to repair the damage or destruction?
C_D
Yes
No
A w i l l f u l l y false statement on this form m a y constitute a crime against the
U n i t e d S t a t e s , p u n i s h a b l e by a fine of not m o r e than $10,000 or not m o r e than
10 y e a r s i m p r i s o n m e n t , or b o t h .
I c e r t i f y that the above statements are true; that the credit applied for in connection
with this a p p l i c a t i o n for exemption from R e g u l a t i o n W will be u s e d only for the p u r p o s e
o f f i n a n c i n g the p r o j e c t described in this a p p l i c a t i o n .
1a,pi leant)
(Data)
or
Approved u n d e r S u b - s e c t i o n 3 . 0 1
3.02
o f NHA G e n e r a l Order N o . 6 0 - 4 B ,
which I have r e a d .
by
Registrant•s Federal Reserve
_ °
„
Certificate N o .
Date
NH 40982 R.
Tlddr »»«)
@FedFRASER