12 USC 1735b - Expenditures to correct or reimburse for structural or other major defects in mortgaged homes

U.S Code last checked for updates: Aug 17, 2025

§ 1735b.

Expenditures to correct or reimburse for structural or other major defects in mortgaged homes

(a)

Prior to beginning of construction

(1)

The Secretary is authorized to make expenditures under this subsection with respect to any property that—

(A)

is a condominium unit (including common areas) or is improved by a one-to-four family dwelling;

(B)

was approved, before the beginning of construction, for mortgage insurance under this chapter or for guaranty, insurance, or direct loan under chapter 37 of title 38 or was less than a year old at the time of insurance of the mortgage and was covered by a consumer protection or warranty plan acceptable to the Secretary; and

(C)

the Secretary finds to have structural defects.

(2)

Expenditures under this subsection may be made for (A) correcting such defects, (B) paying the claims of the owner of the property arising from such defects, or (C) acquiring title to the property: Provided, That such authority of the Secretary shall exist only (A) if the owner has requested assistance from the Secretary not later than four years (or such shorter time as the Secretary may prescribe) after insurance of the mortgage, and (B) if the property is encumbered by a mortgage which is insured under this chapter after September 2, 1964.

(b)

Mortgages insured on or after August 1, 1968, but prior to January 1, 1973; requirements; reimbursement from seller; insurance fund chargeable

(c)

Regulations; finality of decision

(d)

Mortgages insured on or after January 1, 1973, but prior to August 1, 1976; requirements; reimbursement from seller; insurance fund chargeable

(e)

Report to Congress on effective program for protecting home buyers

(June 27, 1934, ch. 847

cite as: 12 USC 1735b