Section 11
SEC. 11. (a) The Commission is authorized upon application by the mortgagee, to insure, in accordance with the provisions of this Act, any mortgage offered to it which is eligible for insurance as hereinafter provided and upon such terms as the Commission may prescribe (including advance on such mortgages during construction), if the mortgage covers property held by— The National Government, provincial, city or municipal governments, or government-owned or controlled corporations and agencies. Private corporations, developmental builders, associations, cooperative societies which are legal agents of owner-occupants, or trusts formed or created for the purpose of rehabilitating slum or blighted areas, or providing housing for rent or sale, and which possess powers necessary therefor and incidental thereto, and which until the termination of all obligations of the Commission under such insurance, are regulated or restricted by the Commission as to rents or sales, charges, capital structure, rate of return, and method of operation to such extent and in such manner as to provide reasonable rentals to tenants and a reasonable return on the investment. The Commission may such contracts with, and acquire for not to exceed one hundred pesos, such stock or interest in, any such corporation, association, cooperative society, or trust as it may deem necessary to render effective such restriction or regulation. Such stock or interest shall be paid for out of the fund and shall be redeemed by the corporation, association, cooperative society, or trust at par upon the termination of all obligations of the Commission under the insurance. An individual owner or joint-owners, (b) Such mortgages may cover the installation of improvements involving— A project by a developmental builder for the construction of not less than twenty dwellings at one time under a single-mortgage with a release clause permitting the subsequent sale of each individual completed house together with land. Loans for advances of funds used for purchase of material in anticipation of mass construction and standardization of parts may be insured in the discretion of the Commission. A rental project of at least twenty units and not to exceed one thousand units and involve a principal obligation (including such initial service, charges, appraisal, inspection, and other fees as the Commission shall approve) in an amount not to exceed five million pesos. (c) To be eligible for insurance under this section a mortgage shall— Involve a principal obligation not to exceed eighty per centum of the prudent cost to the builder of the proposed physical improvements, including buildings, utilities within the boundaries of the property or projects, cost of land, architect's fees, taxes and interests accruing during construction; but not including builders' profit nor other charges, except (for estimated depreciated cost of any existing utilities). The builder shall submit certified bills of sale and other evidences of cost and the Commission shall be the sole judge of the prudence of the expenditure as necessary to comply with the plans and specifications. GENERAL PROVISIONS