us/statute/12/1715r/c/3

Official source

The term “actual cost” has the following meaning: (i) in case the mortgage is to assist the financing of new construction, the term means the actual cost to the mortgagor of such construction, including amounts paid for labor, materials, construction contracts, off-site public utilities, streets, organizational and legal expenses, such allocations of general overhead items as are acceptable to the Secretary, and other items of expense approved by the Secretary, plus (I) a reasonable allowance for builder’s profit if the mortgagor is also the builder as defined by the Secretary, and (II) an amount equal to the Secretary’s estimate of the fair market value of any land (prior to the construction of the improvements built as a part of the project) in the property or project owned by the mortgagor in fee (or, in case the land in the property or project is held by the mortgagor under a leasehold or other interest less than a fee, such amount as the mortgagor paid for the acquisition of such leasehold or other interest but, in no event, in excess of the fair market value of such leasehold or other interest exclusive of the proposed improvements), but excluding the amount of any kickbacks, rebates, or trade discounts received in connection with the construction of the improvements, or (ii) in case the mortgage is to assist the financing of repair or rehabilitation the term means the actual cost to the mortgagor of such repair or rehabilitation, including the amounts paid for labor, materials, construction contracts, off-site public utilities, streets, organization and legal expenses, such allocations of general overhead items as are acceptable to the Secretary, and other items of expense approved by the Secretary, plus (I) a reasonable allowance for builder’s profit if the mortgagor is also the builder as defined by the Secretary, and (II) an additional amount equal to (A) in case the land and improvements are to be acquired by the mortgagor and the purchase price thereof is to be financed with part of the proceeds of the mortgage, the purchase price of such land and improvements prior to such repair or rehabilitation, or (B) in case the land and improvements are owned by the mortgagor subject to an outstanding indebtedness to be refinanced with part of the proceeds of the mortgage, the amount of such outstanding indebtedness secured by such land and improvements, but excluding (for the purposes of this clause (ii)) the amount of any kickbacks, rebates, or trade discounts received in connection with the construction of the improvements: Provided , That such additional amount under (A) of this clause (ii) shall in no event exceed the Secretary’s estimate of the fair market value of such land and improvements prior to such repair or rehabilitation, and such additional amount under (B) of this clause (ii) shall in no event exceed the approved percentage of the Secretary’s estimate of the fair market value of such land and improvements prior to such repair or rehabilitation. In the case of a mortgage insured under section 1715k, 1715 l (d)(3), 1715 l (d)(4), 1715v, 1715x, or 1715z–1 of this title where the mortgagor is also the builder as defined by the Secretary, there shall be included in the actual cost, in lieu of the allowance for builder’s profit under clause (i) or (ii) of the preceding sentence, an allowance for builder’s and sponsor’s profit and risk of 10 per centum (unless the Secretary, after finding that such allowance is unreasonable, shall by regulation prescribe a lesser percentage) of all other items entering into the term “actual cost” except land or amounts paid for a leasehold and amounts included under either (A) or (B) of clause (ii) of the preceding sentence. In the case of a mortgage insured under section 1715k, 1715 l (d)(3), 1715 l (d)(4), 1715v, 1715x, or 1715z–1 of this title, where the mortgagor is not also the builder as defined by the Secretary, there shall be included in the actual cost an allowance for sponsor’s profit and risk of the said 10 per centum or lesser percentage of all other items entering into the term “actual cost” except land or amounts paid for a leasehold, amounts included under either (A) or (B) of the said clause (ii), and amounts paid by the mortgagor under a general construction contract.

Official source

- name: repair_rehabilitation_no_purchase_approved_percentage kind: parameter dtype: Rate source: 12 USC 1715r(c) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/12/1715r excerpt: the approved percentage shall be 100 per centum versions: - effective_from: '0001-01-01' formula: '1.0'

- name: builder_sponsor_profit_risk_allowance_rate kind: parameter dtype: Rate source: 12 USC 1715r(c) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/12/1715r excerpt: an allowance for builder's and sponsor's profit and risk of 10 per centum versions: - effective_from: '0001-01-01' formula: '0.10'

- name: approved_percentage kind: derived entity: Mortgage dtype: Rate period: Year source: 12 USC 1715r(c) metadata: proof: atoms: - path: versions[0].formula kind: definition source: corpus_citation_path: us/statute/12/1715r excerpt: >- except that if the mortgage is to assist the financing of repair or rehabilitation and no part of the proceeds will be used to finance the purchase of the land or structure involved, the approved percentage shall be 100 per centum versions: - effective_from: '0001-01-01' formula: >- if mortgage_assists_repair_or_rehabilitation and no_proceeds_used_to_finance_purchase_of_land_or_structure: repair_rehabilitation_no_purchase_approved_percentage else: secretary_authorized_percentage_under_applicable_provisions

- name: actual_cost_new_construction kind: derived entity: Mortgage dtype: Money period: Year unit: USD source: 12 USC 1715r(c) metadata: proof: atoms: - path: versions[0].formula kind: definition source: corpus_citation_path: us/statute/12/1715r excerpt: >- in case the mortgage is to assist the financing of new construction, the term means the actual cost to the mortgagor of such construction versions: - effective_from: '0001-01-01' formula: >- new_construction_cost_items + (if mortgagor_is_also_builder and not special_builder_sponsor_allowance_mortgage: reasonable_builder_profit_allowance else: 0) + land_or_leasehold_value_for_new_construction - kickbacks_rebates_or_trade_discounts_received_for_construction + (if special_builder_sponsor_allowance_mortgage and mortgagor_is_also_builder: applicable_builder_sponsor_profit_risk_rate * special_allowance_base_excluding_land_leasehold_and_clause_ii_additions else: 0) + (if special_builder_sponsor_allowance_mortgage and not mortgagor_is_also_builder: applicable_sponsor_profit_risk_rate * special_sponsor_allowance_base_excluding_land_leasehold_clause_ii_additions_and_general_construction_contract else: 0)

- name: actual_cost_repair_or_rehabilitation kind: derived entity: Mortgage dtype: Money period: Year unit: USD source: 12 USC 1715r(c) metadata: proof: atoms: - path: versions[0].formula kind: definition source: corpus_citation_path: us/statute/12/1715r excerpt: >- in case the mortgage is to assist the financing of repair or rehabilitation the term means the actual cost to the mortgagor of such repair or rehabilitation versions: - effective_from: '0001-01-01' formula: >- repair_or_rehabilitation_cost_items + (if mortgagor_is_also_builder and not special_builder_sponsor_allowance_mortgage: reasonable_builder_profit_allowance else: 0) + (if land_and_improvements_to_be_acquired_and_purchase_price_financed_with_mortgage_proceeds: min(purchase_price_of_land_and_improvements_before_repair_or_rehabilitation, secretary_estimated_fair_market_value_before_repair_or_rehabilitation) else: 0) + (if land_and_improvements_owned_subject_to_indebtedness_refinanced_with_mortgage_proceeds: min(outstanding_indebtedness_secured_by_land_and_improvements, approved_percentage * secretary_estimated_fair_market_value_before_repair_or_rehabilitation) else: 0) - kickbacks_rebates_or_trade_discounts_received_for_construction + (if special_builder_sponsor_allowance_mortgage and mortgagor_is_also_builder: applicable_builder_sponsor_profit_risk_rate * special_allowance_base_excluding_land_leasehold_and_clause_ii_additions else: 0) + (if special_builder_sponsor_allowance_mortgage and not mortgagor_is_also_builder: applicable_sponsor_profit_risk_rate * special_sponsor_allowance_base_excluding_land_leasehold_clause_ii_additions_and_general_construction_contract else: 0)