[House Prints 108-D]
[From the U.S. Government Printing Office]


   108th Congress  
     2nd  Session            COMMITTEE PRINT           Committee
                                                       Print 108-D
_______________________________________________________________________

                                     

 
  A CHRONOLOGY OF HOUSING LEGISLATION AND SELECTED EXECUTIVE ACTIONS,
                               1892-2003

                               ----------                              

                              A REPORT BY
                   THE CONGRESSIONAL RESEARCH SERVICE

                               ----------                              

                       Printed for the use of the

                    COMMITTEE ON FINANCIAL SERVICES

                     U.S. HOUSE OF REPRESENTATIVES
                      one hundred eighth congress
                            second session  


[GRAPHIC] [TIFF OMITTED] TONGRESS.#13

                               March 2004

                               ----------                              

    This report has not been officially adopted by the Committee on 
  Financial Services and may not necessarily reflect the views of its 
                                Members.



                               ----------                              

92-629              U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 2003
____________________________________________________________________________
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108th Congress 
 2nd Session                COMMITTEE PRINT                   Committee
                                                            Print 108-D
_______________________________________________________________________

                                     


  A CHRONOLOGY OF HOUSING LEGISLATION AND SELECTED EXECUTIVE ACTIONS,

                               1892-2003

                               __________

                              A REPORT BY

                   THE CONGRESSIONAL RESEARCH SERVICE

                               __________

                       Printed for the use of the

                    COMMITTEE ON FINANCIAL SERVICES

                     U.S. HOUSE OF REPRESENTATIVES

                      one hundred eighth congress

                            second session  


[GRAPHIC] [TIFF OMITTED] TONGRESS.#13

                               March 2004

                               __________

    This report has not been officially adopted by the Committee on 
  Financial Services and may not necessarily reflect the views of its 
                                Members.

92-629              U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 2003
____________________________________________________________________________
For Sale by the Superintendent of Documents, U.S. Government Printing Office
Internet: bookstore.gpo.gov  Phone: toll free (866) 512-1800; (202) 512�091800  
Fax: (202) 512�092250 Mail: Stop SSOP, Washington, DC 20402�090001




                 HOUSE COMMITTEE ON FINANCIAL SERVICES

                    MICHAEL G. OXLEY, Ohio, Chairman

JAMES A. LEACH, Iowa                 BARNEY FRANK, Massachusetts
DOUG BEREUTER, Nebraska              PAUL E. KANJORSKI, Pennsylvania
RICHARD H. BAKER, Louisiana          MAXINE WATERS, California
SPENCER BACHUS, Alabama              CAROLYN B. MALONEY, New York
MICHAEL N. CASTLE, Delaware          LUIS V. GUTIERREZ, Illinois
PETER T. KING, New York              NYDIA M. VELAZQUEZ, New York
EDWARD R. ROYCE, California          MELVIN L. WATT, North Carolina
FRANK D. LUCAS, Oklahoma             GARY L. ACKERMAN, New York
ROBERT W. NEY, Ohio                  DARLENE HOOLEY, Oregon
SUE W. KELLY, New York, Vice Chair   JULIA CARSON, Indiana
RON PAUL, Texas                      BRAD SHERMAN, California
PAUL E. GILLMOR, Ohio                GREGORY W. MEEKS, New York
JIM RYUN, Kansas                     BARBARA LEE, California
STEVEN C. LaTOURETTE, Ohio           JAY INSLEE, Washington
DONALD A. MANZULLO, Illinois         DENNIS MOORE, Kansas
WALTER B. JONES, Jr., North          MICHAEL E. CAPUANO, Massachusetts
Carolina                             HAROLD E. FORD, Jr., Tennessee
DOUG OSE, California                 RUBEN HINOJOSA, Texas
JUDY BIGGERT, Illinois               KEN LUCAS, Kentucky
MARK GREEN, Wisconsin                JOSEPH CROWLEY, New York
PATRICK J. TOOMEY, Pennsylvania      WM. LACY CLAY, Missiouri
CHRISTOPHER SHAYS, Connecticut       STEVE ISRAEL, New York
JOHN B. SHADEGG, Arizona             MIKE ROSS, Arkansas
VITO FOSSELLA, New York              CAROLYN McCARTHY, New York
GARY G. MILLER, California           JOE BACA, California
MELISSA A. HART, Pennsylvania        JIM MATHESON, Utah
SHELLEY MOORE CAPITO, West Virginia  STEPHEN F. LYNCH, Massachusetts
PATRICK J. TIBERI, Ohio              BRAD MILLER, North Carolina
MARK R. KENNEDY, Minnesota           RAHM EMANUEL, Illinois
TOM FEENEY, Florida                  DAVID SCOTT, Georgia
JEB HENSARLING, Texas                ARTUR DAVIS, Alabama
SCOTT GARRETT, New Jersey            CHRIS BELL, Texas
TIM MURPHY, Pennsylvania              
GINNY BROWN-WAITE, Florida           BERNARD SANDERS, Vermont
J. GRESHAM BARRETT, South Carolina
KATHERINE HARRIS, Florida
RICK RENZI, Arizona

                 Robert U. Foster, III, Staff Director

                                  (ii)


                         C O N T E N T S

_________________________________________________________________
                                                                   Page

  Submittal Letters and Memoranda................................     v
  Forward........................................................  viii
  I. The Early Years.............................................     1
  II. The 1930s--Responses to the Depression.....................     3
  III. The 1940s--War, Emergency, and Postwar Housing............    17
  IV. The 1950s--Evolution of a Community Development Approach...    33
  V. The 1960s--Economic and Population Growth...................    75
  VI. The 1970s--Reappraisal and Redesign........................   141
  VII. The 1980s--Shifting Priorities............................   211
  VIII. The 1990s--Toward Decentralization.......................   251
  IX. The 21st Century--New Challenges for a New Millenium.......   331

                                 (iii)


                     SUBMITTAL MEMORANDA AND LETTER

   Memoranda From Congressional Research Service Accompanying Updates

                                ------                                

                    Congressional Research Service,
                                       Library of Congress,
                                  Washington, DC, January 24, 2003.
Subcommittee on Housing and Community Opportunity,
  Committee on Financial Services
  House of Representatives, Washington, DC.
    SUBJECT: Chronology of Housing Legislation, Update with 
103rd through 107th Congress

    As you requested, we have prepared the following chronology 
and summary of housing laws enacted during the 103rd through 
107th Congress. This information is intended to update 
Committee Print 103-2, prepared by CRS for the House Banking, 
Finance and Urban Affairs Committee and published in December 
1993. In general, we have used a similar format and provided 
the same level of detail as the 1993 document. (See the forward 
on page [vii of this] committee print for an explanation of 
provisions that were selected to be included or excluded.) To 
meet your deadline, we chose the most efficient method for 
preparing this update, and relied primarily on the summaries of 
laws prepared by CRS for the electronic Legislative Information 
System (LIS). We then compared the summaries to the public laws 
and made necessary additions, deletions, or edits. We made 
every effort to be comprehensive; however, we cannot guarantee 
absolute consistency or that every relevant provision is 
included in this chronology.
    We hope this update will meet your needs. If you have 
questions about the methodology or need additional information, 
please contact Karen Spar, Children and Families (including 
housing) Section Head.

                                  (v)


                    Congressional Research Service,
                                       Library of Congress,
                                 Washington, DC, February 27, 2004.
Subcommittee on Housing and Community Opportunity,
  Committee on Financial Services
  House of Representatives, Washington, DC.
    SUBJECT: Housing Chronology

    Attached please find the update to the Chronology of 
housing laws.
    Public Law 108-185 (H.J. Res. 82) is not included because 
the chronology has historically omitted appropriations bills 
unless they include significant changes in housing programs. 
H.R. 1443 was not included in the version of S. 811 that became 
law. Similarly, H.R. 2470 is not in the Agriculture 
appropriations bill that became law.

                                  (vi)


    Original Transmittal Letter from Congressional Research Service

                                ------                                

                    Congressional Research Service,
                                       Library of Congress,
                                     Washington, DC, July 15, 1993.
Hon. Henry B. Gonzales,
Chairman, Committee on Banking, Financial Services, and Urban Affairs
House of Representatives, Washington, DC.
    Dear Mr. Chairman: It gives me pleasure to convey this 
summary of legislation relating to housing and urban 
development entitled ``A Chronology of Housing Legislation and 
Selected Executive Actions, 1892-1992.'' It revises and 
continues through 1992 the record presented in the Committee 
print of October, 1975, ``Evolution of Role of the Federal 
Government in Housing and Community Development.''
    The principal author of this work has been Dr. Grace 
Milgram. She has been assisted in summarizing some of the 
legislation concerning the secondary mortgage market and 
Resolution Trust Fund by Barbara Miles, and that concerning 
community development by Eugene P. Boyd. Marietta L. Sharperson 
has provided thoughtful clerical assistance.
    We trust that this chronology will assist the Congress in 
consideration of housing and community development issues and 
policies.
      Sincerely,
                                  Joseph E. Ross, Director.

                                 (vii)


                                FOREWORD

                         From the 1993 Edition

    This Chronology summarizes the main provisions of Federal 
legislation relating to housing and community development, 
particularly that relating to programs administered by the 
Department of Housing and Urban Development and the Farmers 
Home Administration of the Department of Agriculture. It covers 
the period 1892 through 1992, in chronological order. It 
incorporates, in revised form, and continues the now out-of-
print Committee document, Evolution of Role of the Federal 
Government in Housing and Community Development, issued 
October, 1975. In addition to the legislation, it includes 
summaries of Executive documents related in significant ways to 
the development of such legislation and to the organization of 
the administering agencies. It also includes legislation 
affecting housing-related matters in the jurisdiction of the 
Home Loan Bank Board and its successor agencies, but not 
banking legislation per se.
    The Chronology does not include the less closely related 
housing programs of the Department of Veterans Affairs, the 
Department of Defense, or other governmental agencies which are 
not within the purview of the Subcommittee on Housing and 
Community Development of the Committee on Banking, Finance and 
Urban Affairs. It includes authorization levels of funding only 
when a particular program is begun, to indicate its planned 
dimensions. It does not include budget proposals nor 
appropriations, but does include substantive matters contained 
in appropriation Acts.
    It should be understood that these summaries are simply 
that summaries of the more important provisions of the Acts. 
The Chronology is not meant to be all-inclusive, nor does it 
attempt any interpretation of the legislation. Thus, it 
provides a reference to assist in following important 
developments in housing policies, and a guide to locating the 
particular statute which might be of special interest to the 
reader. For precise knowledge of the provisions of the law, the 
summary in the Chronology should not be considered a substitute 
for the actual text of the Acts.

                        Updates to this Edition

    This edition updates the previous edition by adding 
information regarding programs enacted or reauthorized from 
1992 through the end of the first session of the 108th Congress 
in 2003.

                                 (viii)

                           I. THE EARLY YEARS

                      Investigation of City Slums

                (Public Resolution 52-22, July 20, 1892)

     Provided $20,000 for investigation of slums in 
cities of 200,000 or more population. The report covered four 
cities.

             Reports of the President's Housing Commission

                         (60th Congress, 1909)

     Recommended government loans to build habitable 
dwellings, condemnation and purchase of slum properties by the 
government and improvement or replacement of these so that 
inexpensive and healthful habitations would be available to the 
poor by rental or purchase at low interest rates.

                Loans for Housing for Shipyard Employees

                   (Public Law 65-102, March 1, 1918)

     Authorized Federal loans to realty companies 
incorporated by shipbuilding companies for housing for shipyard 
employees. (Housing was provided in 24 localities, including 
9,000 houses, 1,100 apartments, 19 dormitories, and 8 hotels.)

                        Housing for War Workers

       (Public Laws 65-149 and 65-164, May 16, and June 4, 1918)

     Authorized the U.S. Housing Corporation to build 
and manage community projects for war workers. (25 communities 
comprising more than 5,000 single-family dwellings, and, in 
addition, apartments, dormitories and hotels were built. Most 
of the housing after the War was sold to private owners.)
               II. THE 1930s RESPONSES TO THE DEPRESSION

     The President's Conference on Home Building and Home Ownership

                          (December 2-4, 1931)

     Convened by the President, who announced his 
intention to recommend to the Congress ``* * * a system of Home 
Loan Discount Banks'' to:
          a. take pressure off sound home mortgage lending 
        institutions and permit them to recover;
          b. stimulate home construction and increase 
        employment;
          c. prevent repetition of the mortgage industry's 
        collapse in the face of economic difficulty; and
          d. create a structure for the promotion of 
        homeownership.
     Identified weaknesses and inadequacies of housing 
and home financing in the United States, but advanced no 
specific recommendations for Federal legislation.
     Issued Proceedings & Reports of the President's 
Commission, December 19.

             Emergency Relief and Construction Act of 1932

                   (Public Law 72-302, July 21, 1932)

     Authorized the Reconstruction Finance Corporation 
to make loans to corporations established to provide housing 
for low income families or to reconstruct slum areas. (Two 
loans were made--one for $8,059,000 to finance Knickerbocker 
Village in New York City, and the other for $155,000 to finance 
rural homes in Kansas.)

                       Federal Home Loan Bank Act

                   (Public Law 72-304, July 22, 1932)

     Established the Federal Home Loan Bank System by 
creating the Federal Home Loan Bank Board, which was directed 
to establish up to 12 Federal Home Loan Banks to operate in 
districts designated by the Board.
     Made building and loan associations, cooperative 
banks, homestead associations, insurance companies and savings 
banks eligible to become members of, or nonmember borrowers 
from, the Federal Home Loan Banks.
     Authorized the Bank to make advances to member and 
nonmember borrowers upon the security of home mortgages which 
met requirements of the Act. Aggregate outstanding advances 
made to any member could not exceed 12 times the amount paid in 
by the member for outstanding capital stock held by it in the 
Bank. Advances to a nonmember borrower could not exceed 12 
times the value of the security required. The Banks could sell 
advances made under the Act to other Federal Home Loan Banks, 
or allow participation in such advances.
     Provided that any homeowner who came within the 
limits of the Act and who was unable to obtain mortgage money 
from any other source could obtain mortgage money from any Bank 
organized under the Act. (This provision was repealed by P.L. 
73-43, June 13, 1933.)
     Required the capital stock of each Federal Home 
Loan Bank to be not less than $5 million.
     Required members to subscribe to stock in amounts 
equal to 1 percent of the subscriber's home mortgage loans. The 
U.S. Treasury subscribed to the amounts of stock required to 
provide the minimum capital for each Bank, but not more than an 
aggregate amount of $125 million. Authorized the Reconstruction 
Finance Corporation to provide funds for the stock purchases by 
the Treasury out of the capital of the RFC or the proceeds of 
obligations issued by RFC.
     When the amount of capital of a Bank paid in by 
members equaled the amount paid in by the Treasury, required 
the Bank to pay annually towards retirement of Treasury-held 
stock 50 percent of all sums thereafter paid in as capital 
until all the Treasury-held stock was retired at par. Also, 
stock held by the U.S. could, at any time with the approval of 
the Board, be paid off at par and retired in whole or in part. 
Further, the Board could at any time require Treasury-held 
stock to be paid off at par and retired in whole or in part, if 
the Board was of the opinion that the Bank had available 
resources for this purpose.
     Empowered each Federal Home Loan Bank to issue 
bonds and debentures secured by the transfer of eligible 
obligations of borrowing institutions on advances made by the 
Bank to borrowing institutions, and by the deposit of home 
mortgages. The Banks were jointly and severally liable for the 
bonds and debentures issued by any Federal Home Loan Bank. All 
obligations were required to state plainly that they were not 
obligations of the United States and not guaranteed by the 
United States.

                     Home Owners' Loan Act of 1933

                   (Public Law 73-43, June 13, 1933)

Emergency Relief to Home Mortgagors
     Directed the Federal Home Loan Bank Board to 
create the Home Owners' Loan Corporation. Directed the 
Secretary of the Treasury to subscribe to capital stock of the 
Corporation in amounts aggregating not more than $200 million. 
Funds for the stock subscription were provided by the 
Reconstruction Finance Corporation, and RFC's authority to 
issue obligations for borrowing was increased for this purpose 
by $200 million. Authorized the HOLC to issue bonds in amounts 
aggregating not more than $2 billion to provide funds for its 
operations. Guaranteed payment of interest on the bonds. 
Exempted the bonds from Federal, State and local taxation, both 
as to principal and interest.
     Authorized the HOLC, for a period of three years, 
to refinance mortgages of distressed home-owners by offering 
them long-term mortgage loans to be amortized by monthly 
payments sufficient to retire the loans within 15 years. The 
interest on the HOLC loans could not exceed 5 percent. The HOLC 
could also make advances for the redemption of foreclosed home 
mortgages. (More than a million home loans were refinanced. The 
HLBB announced the termination of HOLC, following delivery of a 
check for nearly $14 million surplus to the U.S. Treasury, May 
29, 1951.)
Federal Savings and Loan Associations
     Authorized the Federal Home Loan Bank Board to 
provide for the organization, examination, operation, and 
regulation of Federal savings and loan associations. The 
associations could lend their funds only on the security of 
their shares or on the security of home mortgages or 
combinations of home and business property mortgages within 50 
miles of their home offices. Limited the loans to $20,000, 
except that not more than 15 percent of an Association's assets 
could be loaned on other improved real estate without regard to 
the $20,000 and 50 miles limit.
     Made each Federal savings and loan association a 
member of the Federal Home Loan Bank of the district in which 
it was located and members of the Federal Home Loan Banks were 
permitted to convert into Federal savings and loan 
associations.
     Authorized the Secretary of the Treasury to 
subscribe for preferred shares in an association up to $100,000 
if necessary to encourage local home financing in the 
community. Authorized Federal appropriations aggregating up to 
$100 million for this purpose.
     Exempted the associations and their loans and 
income, and all shares (both value and income) from Federal 
taxes. Prohibited State and local authorities from imposing 
taxes on the associations greater than those imposed on similar 
thrift and home financing institutions.
     Repealed the direct loan authority of Federal home 
loan banks.

                    National Industrial Recovery Act

                   (Public Law 73-67, June 16, 1933)

     Authorized the use of Federal funds to finance 
low-cost and slum-clearance housing and subsistence homesteads, 
as a means of providing employment. (Resulted in construction 
of 50 low-rent public housing projects, containing 21,600 
units, in 37 cities, and 15,000 units were provided in 
resettlement projects and Greenbelt towns. In addition, loans 
were made for seven limited-dividend projects with 3,065 
dwelling units.)

               Amendment to Home Owners Loan Act of 1933

                  (Public Law 73-178, April 27, 1934)

     Authorized federal guarantee of the principal of 
the bonds issued by the Home Owners' Loan Corporation, in 
addition to previously authorized guarantee of interest.
     Authorized HOLC to purchase shares in savings and 
loan associations which were members of the Federal Home Loan 
Banks. ($223 million was so invested.)

                          National Housing Act

                   (Public Law 73-479, June 27, 1934)

     Created the Federal Housing Administration, headed 
by a Federal Housing Administrator.
Title I--Housing Renovation and Modernization
     Authorized the Administrator to insure banks, 
trust companies, personal finance companies, mortgage 
companies, building and loan associations, installments lending 
companies, and other such financial institutions approved by 
him against losses on loans and purchases of obligations 
representing loans for financing alterations, repairs, and 
improvements upon real property. The insurance could in no case 
exceed 20 percent of the total amount of such loans and 
purchases made by the financial institutions, and the total 
liability incurred by the Administrator for such insurance 
could not exceed in the aggregate $200 million. No insurance 
could be entered into after the end of 1935. The face amount of 
an obligation could not exceed $2,000 and had to meet terms, 
conditions and restrictions prescribed by FHA.
     Authorized FHA to make loans to insured 
institutions upon the security of obligations which met the 
requirements prescribed under the Title I loan insurance 
program. (Repealed by P.L. 74-486, April 3, 1936)
Title II--Mutual Mortgage Insurance. Insurance of Mortgages on One- to 
        Four-Family Homes
     Authorized FHA in Section 203 to insure, and to 
make commitments to insure mortgages on one- to four-family 
homes with obligations not exceeding $16,000 or 80 percent of 
the appraised value of the property covered by the mortgage. 
Maturity of a mortgage could not exceed 20 years, and the 
interest rate could not exceed 5 percent, or 6 percent if the 
Administrator found that in certain areas or under special 
circumstances the mortgage demanded it.
     Authorized the Administrator to fix a premium 
charge for the insurance of mortgages.
     No mortgage could be insured under Section 203 
unless the Administrator found that the project covered by the 
mortgage was economically sound.
     Provided for payment of insurance by the issuance 
of 3-year debentures by FHA, bearing interest at a rate 
determined by FHA at the time the mortgage was offered for 
insurance, but not more than 3 percent.
     Fully guaranteed such debentures issued prior to 
July 1, 1937 as to principal and interest, payable from the 
Mutual Mortgage Insurance Fund created by the Act. Provided 
that if the Fund could not pay the principal of, or interest 
on, the debentures when due, the Secretary of the Treasury 
would pay the amount demanded out of any money in the Treasury 
not otherwise appropriated.
     Established the Mutual Mortgage Insurance Fund and 
funded it with $10 million made available by the Treasury.
     The mortgages insured were to be classified by FHA 
into groups involving similar risk characteristics and similar 
maturity dates and premium charges and all earnings of the 
assets of the group account were to be credited to the account 
of the group to which the mortgage was assigned. Debentures and 
other expenses of the mortgages in a group were to be charged 
to the account of the group to which a mortgage was assigned.
  Low-Cost Housing Insurance
     Authorized in Section 207 insurance of mortgages 
covering property held by Federal or State instrumentalities, 
private limited dividend corporations, or municipal corporate 
instrumentalities of one or more States, formed for the purpose 
of providing housing for persons of low incomes. The housing 
was required to be regulated by FHA as to rents, charges, 
capital structure, rate of return, and methods of operation. 
The mortgage could not exceed $10 million.
  Statistical and Economic Surveys
     Directed the Administrator to make such 
statistical surveys and legal economic studies as he deemed 
useful to guide the development of housing and the creation of 
a sound mortgage market in U.S.
  Provision of Funds
     Directed the Reconstruction Finance Corporation to 
make available to FHA such funds as deemed necessary, and 
increased the amount of obligations RFC was empowered to have 
outstanding by an amount sufficient to provide the funds. 
Authorized the President to provide such funds or any portion 
thereof by allotment to the FHA from any funds available to the 
President for emergency purposes.
National Mortgage Association
     Authorized the Federal Housing Administrator to 
establish national mortgage associations to provide a secondary 
market for home mortgages by the purchase and sale of first 
mortgages. The mortgages could not exceed 80 percent of the 
appraised value of the property covered by the mortgage as of 
the date of purchase. An association could borrow money through 
the issuance of notes, bonds, debentures or other obligations. 
(Pursuant to this authority, the Federal National Mortgage 
Association was chartered by the FHA on February 10, 1938, as a 
subsidiary of the RFC.)
Federal Savings and Loan Insurance Corporation
     Created the Federal Savings and Loan Insurance 
Corporation to insure the accounts of building and loan, 
savings and loan, and homestead associations and cooperative 
banks, and the accounts of all Federal savings and loan 
associations. No member or investor of any such institution 
could be insured for an aggregate amount in excess of $5,000. 
(The capital stock ($100 million) of the FSLIC was subscribed 
for by the Home Owners' Loan Corporation. Payments for the 
stock were made in bonds of HOLC. HOLC was to receive dividends 
on the stock out of net earnings at a rate equal to the 
interest rate on the bonds, and the dividends were to be 
cumulative.)
     Authorized FSLIC to issue notes, bonds, debentures 
or other obligations and the obligations were exempt, both as 
to principal and interest, from all taxation--Federal, State, 
or local. Exempted the Corporation from all taxation, except 
that any real property of the Corporation was subject to State 
or local taxation to the same extent as other real property.
     Required insured savings institutions to pay 
premiums for the insurance equal to one-fourth of 1 percent of 
the total amount of all accounts plus any creditor obligations 
of the institution. Authorized FSLIC to assess insured 
institutions additional premiums for insurance until the amount 
of the premiums equaled the amount of all losses and expenses 
of FSLIC, but the total amount so assessed in any one year 
could not exceed one-fourth of 1 percent of the total amount of 
an institution's accounts and creditor obligations.
     Required institutions applying for insurance to 
pay admission fees based upon the reserve fund of the 
application, which in the judgment of FSLIC, were equitable 
contributions.
Federal Home Loan Bank Act Amendments
     Authorized advances by Federal Home Loan Banks 
secured by mortgages insured by FHA under Title II of the 
National Housing Act.
     Authorized Federal Home Loan Banks to make 
advances to finance home repairs, improvements, and alterations 
secured by loans insured by FHA under Title I of the National 
Housing Act.
     Authorized the Federal Home Loan Bank Board to 
issue consolidated Federal Home Loan Bank debentures which were 
the joint and several obligations of all Federal Home Loan 
Banks.
     Authorized the Board, when no debentures were 
outstanding, or in order to refund all outstanding consolidated 
debentures, to issue consolidated Federal Home Loan Bank bonds 
which were the joint and several obligations of all the Federal 
Home Loan Banks.
Amendment of Farm Credit Act of 1933. Home Repair Loans
     Authorized production credit associations, without 
regard to stock ownership requirements, to make and sell home 
alterations, repair and improvement loans and to avail 
themselves of FHA insurance of such loans.
National Banks. FHA-Insured Loans
     Amended the Federal Reserve Act to exempt FHA-
insured loans insured under Title II of the National Housing 
Act from restrictions as to the amounts of the loans prescribed 
in the Federal Reserve Act.
     Classed loans made by national banks having 
maturities of not more than six months made to finance 
residential or farm building construction as ordinary 
commercial loans and made them eligible for discount as 
commercial paper within the terms of the Federal Reserve Act.
Home Owners' Loan Corporation
     Increased the limit on HOLC's authority to issue 
bonds by $1 billion and by the amount of any of its bonds 
called in and retired.
     Increased the limit on the amount of capital stock 
of HOLC from $200 million to $300 million.
Reduced Transportation Rates. Improvement of Housing Standards
     Amended the Interstate Commerce Commission Act to 
provide that carriers could give reduced rates for the 
transportation of commodities to be specified by the Commission 
with the object of improving nationwide housing standards and 
providing employment and stimulating industry.

          Amendments to Reconstruction Finance Corporation Act

                  (Public Law 74-1, January 31, 1935)

     Authorized RFC to subscribe for or make loans upon 
the nonaccessable stock of any national mortgage association 
organized under Title III of the National Housing Act (supra), 
and of any mortgage loan company or other similar financial 
institution whose principal business is that of making loans 
upon real-estate mortgages. (Pursuant to this authority, RFC 
organized the RFC Mortgage Company to make mortgage loans on 
urban income-producing properties when credit was not otherwise 
available at reasonable rates.)

    Emergency Relief Appropriation Act of 1935--Housing Survey and 
                               Inventory

                   (Public Law 74-11, April 8, 1935)

     Included $450 million for housing in appropriation 
for public works. (The Works Progress Administration and the 
Bureau of Labor Statistics did a cooperative construction 
pattern survey to aid public works planning, including housing. 
The first extensive real property inventory of urban housing 
was conducted in 203 urban areas by the WPA and the Department 
of Commerce.)

                 Amendments to the National Housing Act

                    (Public Law 74-76, May 28, 1935)

FSLIC Premium Charge Reduced
     Reduced the insurance premium charge paid by 
lending institutions to the Federal Savings and Loan Insurance 
Corporation from one-fourth to one-eighth of 1 percent of the 
total amount of all accounts of the insured members of the 
lending institution plus any creditor obligations of the 
institution.
FSLIC Prevention of Defaults in Insured Institutions
     In order to prevent a default in an insured 
lending institution or to restore an insured institution in 
default to normal operation, authorized the FSLIC to make loans 
to, purchase the assets of, or make a contribution to, an 
insured institution or an insured institution in default.
FHA-Insured Property Improvement Loans
     Made property improvement loans made prior to 
April 1, 1936 (previously January 1, 1936) eligible for FHA 
insurance. Loans for property improvement, including the 
installation of equipment and machinery, were made eligible for 
FHA insurance under the Title I program.
     Made Title I FHA insurance available for loans up 
to $50,000 with respect to real property improved by or to be 
converted into multiple family houses, hotels, office, business 
or other commercial buildings, hospitals, orphanages, colleges, 
schools, or manufacturing or industrial plants.
Capital Stock of National Mortgage Associations
     Reduced the minimum amount of capital stock 
required for a national mortgage association from $5,000,000 to 
$2,000,000.

                 Amendments to the National Housing Act

                   (Public Law 74-486, April 3, 1936)

     Repealed Section 3 of the National Housing Act 
(Section 3 authorized the FHA to make loans to institutions it 
insured under Title I upon the security of obligations which 
met the requirements prescribed under Title I for property 
improvement loan insurance.) (See P.L. 73-479, June 27, 1934.)

                       FHA Insured Disaster Loans

                  (Public Law 74-525, April 17, 1936)

     Added Section 6 to the National Housing Act to 
authorize FHA to insure loans for the restoration, 
rehabilitation, rebuilding and replacement of improvements on 
real property and equipment and machinery on the property which 
were damaged or destroyed by earthquake, conflagration, 
tornado, cyclone, hurricane, flood, or other catastrophe. 
(Repealed by P.L. 76-111, June 3, 1939)

                       Payments in Lieu of Taxes

((a) Public Law 74-837, June 29, 1936; (b) Public Law 74-845, June 29, 
                                 1936)

     Authorized payments in lieu of taxes to States and 
political subdivisions with respect to projects later 
transferred to PHA: (a) Public Works Administration low-cost 
housing projects and (b) resettlement or rural rehabilitation 
projects of the Resettlement Administration.

                    U.S. Guarantee of FHA Debentures

           (Public Res. 6, 75th Congress, February 19, 1937)

     Debentures issued by FHA in exchange for mortgages 
insured prior to July, 1939 (previously July 1, 1937) were 
fully guaranteed by the United States as to principal and 
interest.

                     Bankhead-Jones Farm Tenant Act

                   (Public Law 75-210, July 22, 1937)

     Authorized the Secretary of Agriculture to make 
40-year, 3 percent loans to farm tenants, laborers, and 
sharecroppers, to finance the purchase of farms and repairs and 
improvements (including housing), and five-year, 3 percent 
loans for minor improvements and repairs and for the 
refinancing of existing indebtedness.

                   United States Housing Act of 1937

                 (Public Law 75-412, September 1, 1937)

Public Housing Program
     Authorized public housing program and created the 
United States Housing Authority in the Department of Interior 
to carry it out.
     Authorized the Authority to make loans to local 
public housing agencies to assist the development, acquisition, 
or administration of low-rent housing or slum clearance 
projects by those agencies. Also to make annual contributions 
to the agencies to assist in achieving and maintaining the low-
rent character of the housing projects.
     As an alternative method of assistance, authorized 
the Authority to make capital grants to the local public 
housing agencies, limited to the amounts necessary to assure 
the low-rent character of the housing. A capital grant could 
not exceed 25 percent of development or acquisition cost and 
there were dollar limits on the aggregate amounts of capital 
grants that could be made.
     A loan could not exceed 90 percent of the 
development or acquisition cost of a project. Where capital 
grants were to be made, the total amount of loans on a project 
was reduced by the amount of such grants. The loans were to 
bear interest at a rate not less than the applicable going 
Federal rate plus \1/2\ of 1 percent, and the terms of the 
loans were limited to 60 years.
     The annual contributions could be for periods up 
to 60 years and for any project were required to be fixed in 
uniform amounts and to be paid in such amounts over a fixed 
period of years. The provisions for annual contributions were 
to be embodied in a contract guaranteeing the payment over the 
fixed periods. The fixed contribution could, in no case, exceed 
a sum equal to the annual yield at the applicable going Federal 
rate plus 1 percent upon the development or acquisition cost of 
the housing. Required the annual contribution contract to 
provide that whenever in any year the receipts of the public 
housing agency exceeded its expenditures an amount equal to the 
excess was to be applied to a reduction in subsequent annual 
contributions.
     Authorized contracts for annual contributions 
aggregating not more than $5 million per annum on and after 
September 1, 1937, an additional $7.5 million on or after July 
1, 1938, and an additional $7.5 million on or after July 1, 
1939.
     Pledged the faith of the United States to the 
payment of all annual contributions contracted for and 
authorized to be appropriated in each fiscal year the amounts 
necessary to provide for the payments. Payments under annual 
contributions contracts were to be pledged, if the Authority so 
required, as security for any loans obtained by a public 
housing agency for a project.
     Required the annual contributions contracts to 
make provisions with respect to maximum income limits of the 
tenants of the housing and tenant admission policies.

                National Housing Act Amendments of 1938

                 (Public Law 75-424, February 3, 1938)

     Made numerous changes in the FHA housing insurance 
programs. Major provisions were:
Title I Property Improvement Loan Insurance
     Changed the loans eligible for insurance to those 
made for alteration, repairs and improvements upon urban, 
suburban, or rural real property. Amended the limit on the 
amount of a loan to $10,000 for financing of repairs, 
alterations or improvements of existing structures and $2,500 
for building new structures. (Prior to these amendments, loans 
for certain purposes could be up to $50,000 and could finance 
conversions to multifamily structures, manufacturing plants, 
schools, hospitals, and other nonhousing purposes.)
Title II Mortgage Insurance
  Section 203 Home Mortgage Insurance Program
     Limited the use of the Mutual Mortgage Insurance 
Fund to Section 203 one- to four-family housing mortgages.
     Increased the aggregate amount of mortgages that 
could be insured under the Section 203 program from $1 billion 
to $2 billion and gave the President authority to increase the 
limit up to not more than $3 billion.
     Set new limits on the amounts of individual 
mortgages that could be insured under the Section 203 program. 
They were based on dollar amounts and 80 or 90 percent of 
appraised value, varying in accordance with whether the 
mortgage covered a one-to four-family structure, was an owner-
occupied family home, and new or existing structure.
     The term of a mortgage could not exceed 20 years 
except it could be up to 25 years if on a new owner-occupied 
home.
     The interest rate could be up to 5 percent, or not 
to exceed 6 percent in certain areas or where the mortgage 
market demanded it.
     The insurance premium for a mortgage on an owner-
occupied new home was \1/4\ of 1 percent rather than \1/2\ of 1 
percent as required for other Section 203 mortgages.
  New Program for Farm Houses or Buildings
     Authorized FHA to insure under the Section 203 
program mortgages covering a farm upon which a farm house or 
other farm buildings were to be constructed or repaired. The 
construction and repair were required to involve expenditures 
not less than 15 percent of the total principal obligation of 
the mortgage. (Repealed by Housing Act of 1957, P.L. 55-104, 
July 12, 1957)
  Payment of Insurance
     Changes were made in the provisions of Section 203 
program governing payment of insurance.
  New Section 207 Rental Housing Program
     Changed the original Section 207 mortgage 
insurance program for low-cost housing to a new rental housing 
mortgage insurance program.
     Under the new program, mortgagors could be 
Federal, State or local instrumentalities, limited dividend 
corporations, private corporations, associations, cooperative 
societies, or trusts formed or created for the purpose of 
rehabilitating slum or blighted areas, or providing housing for 
rent or sale. The private mortgagors were regulated by FHA as 
to rents or sales, charges, capital structure, rate of return, 
and methods of operation in such manner as to provide 
reasonable rentals and a reasonable return on the investment. 
FHA could acquire up to $100 worth of stock or interest in a 
private mortgagor.
     Limited the amount of mortgage to $5 million and 
not to exceed 80 percent of the value of the property when 
completed. The part of a mortgage attributable to dwelling use 
could not exceed $1,350 per room. The interest rate could not 
exceed 5 percent and the mortgage was required to provide for 
amortization by periodic payments within terms prescribed by 
FHA. The project covered by the mortgage had to be found 
economically sound.
     Created the Housing Insurance Fund for the new 
Section 207 program and made provisions for payment of 
insurance in cases of default.
  Section 210 Mortgage Insurance Program
     Under a new Section 210 program, authorized FHA to 
insure mortgages and advances on mortgages covering property 
upon which there was located or to be constructed one or more 
multifamily dwellings or a group of not less than 10 single-
family dwellings. (Repealed by P.L. 76-111, June 3, 1939)
     Limited the amount of an insured mortgage to 
$16,000 per unit, but not more than $200,000 and 80 percent of 
the value of the property when improvements were completed. The 
part attributable to dwelling use could not exceed $1,150 per 
room.
     The mortgage could have a term of not more than 21 
years and could bear interest at not higher than 5 percent.
National Mortgage Associations
     Title III of the National Housing Act was amended 
to:
          (i) Authorize national mortgage associations to:
                  1. make FHA Sections 207 and 210 insured 
                mortgage loans;
                  2. purchase, service or sell any mortgages, 
                or partial interests in mortgages insured by 
                FHA under its title II programs;
                  3. purchase, service, or sell uninsured 
                mortgages the amounts of which did not exceed 
                60 percent of the appraised value of the 
                property at the time of purchase; and
                  4. issue obligations in an aggregate amount 
                not to exceed 20 times the amount of its paid-
                up capital and surplus (previously the limit 
                was 10 times).
                  5. increased the minimum amount of capital 
                stock from $2 million (required by the 1935 
                amendments) to $5 million.
          (ii) Exempt obligations of national mortgage 
        associations, both as to principal and interest, and 
        the associations, including their loans and stock, from 
        all taxation. Real property of the associations 
        continued to be taxable by State and local governments.
Tax Exemption of FHA Debentures
    Exempted all FHA debentures issued after February 3, 1938, 
from Federal, State, and local taxation, both as to principal 
and interest.

                       Amendments to FHA Programs

                   (Public Law 76-111, June 3, 1939)

Title I Program
     Made the property improvement loan insurance 
program available for the building of new structures and the 
rehabilitation of improvements damaged by disasters, such as 
earthquakes and floods. Repealed the Section 6 program for 
disaster loans adopted in P.L. 74-525.
     Limited the amount of an FHA-insured Title I loan 
to $2,500. (Previously, a loan could be up to $10,000, except 
the limit was $2,500 if the loan was for new construction.)
     Limited the term of the Title I loan to three 
years, except where the loans financed the construction of 
structures for residential or agricultural purposes. 
(Previously, FHA set the maturity.)
     Added provisions to Title I authorizing FHA to fix 
a premium charge for insurance of the Title I loans. The charge 
could not exceed 3/4 of 1 percent of the net proceeds of the 
loans of the insured institution.
FHA Title II Mortgage Insurance Authority
     Extended the FHA home mortgage insurance and 
rental housing programs by increasing the limit on the 
aggregate amount of mortgages which could be insured from $2 
billion to $3 billion, with authority in the President to raise 
the limit up to $4 billion.
     Limited insurance of mortgages on existing housing 
under FHA's Title II program to 25 percent of the total amount 
of mortgages insured after the effective date of the amendment 
(June 3, 1939).
     Limited insurance under Title II, to mortgages 
covering new construction, or property which had been 
previously covered by an FHA-insured mortgage.
     Reduced the maximum interest on an FHA-insured 
Section 207 rental housing mortgage from 5 percent to 4 \1/2\ 
percent.
     Imposed a further limit on the amount of a 
mortgage to not to exceed the FHA estimate of the cost of 
completed improvements on the property exclusive of utilities 
and streets; taxes, interest, and insurance during 
construction; organization and legal expenses; and 
miscellaneous charges during or incidental to construction.
Section 210
     Repealed this section, except for applications 
already filed.
Labor Standards
     Prohibited insurance of mortgages on multifamily 
housing insured under Sections 207 or 210 unless certification 
was provided by the construction contractor that not less than 
prevailing wages in the locality had been paid to the laborers 
and mechanics working on the project.

                   Reorganization of Housing Agencies

 (President's Reorganization Plan No. 1, and Pub. Res. 76-20, June 7, 
                                 1939)

     Effective July 1, 1939, established the Federal 
Loan Agency and Federal Works Agency to coordinate and 
supervise various agencies, including those with housing 
functions. Placed the RFC Mortgage Company, the Federal 
National Mortgage Association, the Federal Home Loan Bank 
Board, the Home Owners' Loan Corporation, and the Federal 
Housing Administration in the Federal Loan Agency. Transferred 
the U.S. Housing Authority to the Federal Works Agency.

                           HOLC Terms Amended

                  (Public Law 76-381, August 11, 1939)

     Permitted HOLC loans made to refinance home 
mortgages to be amortized over a period of 25 years rather than 
the previous limit of 15 years.

                        First Census on Housing

                  (Public Law 70-385, August 11, 1939)

     Authorized the Bureau of the Census, in connection 
with the 1940 Census, to obtain data on the characteristics of 
the Nation's housing supply and occupancy. (This became the 
first census on housing.)
           III. THE 1940s--WAR, EMERGENCY AND POSTWAR HOUSING

                       Defense Homes Corporation

      (Public Laws 76-588 and 76-611, June 11, and June 13, 1940)

     Established the Defense Homes Corporation by the 
purchase of capital stock with funds appropriated by the Navy 
Department and Military Appropriations Acts for 1941. DHC was 
incorporated pursuant to a letter from the President to the 
Secretary of the Treasury on October 18, 1940. DHC was to 
provide defense housing in the Washington area and other areas 
of extensive defense activities.

            Amendments to United States Housing Act of 1937

                   (Public Law 76-671, June 28, 1940)

     Authorized the use of its loan and subsidy 
provisions and the projects provided under the Act for defense 
and war workers.
     Authorized the establishment of priorities in 
deliveries of materials for national defense.

                      Defense Housing Coordinator

     The Office of Defense Housing Coordinator was 
established July 21, 1940, by the Advisory Commission to the 
Council of National Defense. The Office had responsibility for 
planning the defense housing program and its administration 
through private industry and appropriate Federal agencies.

                               Lanham Act

                 (Public Law 76-849, October 14, 1940)

     Authorized provision by the Federal Government of 
public war housing accommodations.

                 Soliders & Sailors Relief Act of 1940

                 (Public Law 76-861, October 17, 1940)

     Provided relief to servicemen with respect to 
mortgage and other obligations.

                 Executive Order 8632, January 11, 1941

     Created the Division of Defense Housing 
Coordination within the Office for Emergency Management to take 
over activities and personnel of the Defense Housing 
Coordinator.

                   Amendments to National Housing Act

                   (Public Law 77-24, March 28, 1941)

     Added Title VI, which authorized FHA to insure 
mortgages (up to $100 million, aggregate) under more liberal 
terms in order to provide one- to four-family homes in critical 
defense areas. (Authority to insure mortgages on one- to four-
family homes under Title VI was terminated by the Housing Act 
of 1948, P.L. 80-901, August 10, 1948.)
     Authorized FNMA to purchase and sell Title VI 
mortgages, and national banks and Federal Home Loan Banks to 
include them in their operations.

          Report of the Temporary National Economic Committee

                    (S. Doc. 77-35, March 31, 1941)

     The final report and recommendations of the 
Temporary National Economic Committee unanimously commended 
efforts such as slum clearance and low-cost housing, among 
other things, on behalf of the less privileged people ``to the 
end that they may become as speedily as possible fully 
participating, responsible members of the community.''

                   Amendments to National Housing Act

                   (Public Law 77-138, June 28, 1941)

     Raised the limit on the aggregate amount of loans 
that could be insured under Title I from $100 to $165 million.
     Permitted insurance of loans up to $5,000 for the 
alteration, repair or improvement of a dwelling designed for 
more than one family, and up to $3,000 (previously $2,500) for 
financing the construction of new structures.
     Continued the FHA Title II home mortgage and 
rental housing programs by increasing the limit on the 
aggregate amount of the mortgages that could be insured from $3 
billion to $4 billion, with authority in the President to raise 
the limit to $5 billion. Increased the limit on the amount of 
the Title II mortgages that could be insured for existing 
housing from 25 percent to 35 percent of the mortgages insured 
after June 3, 1939.

                   Amendment of FHA Title VI Program

                 (Public Law 77-248, September 2, 1941)

     Raised the aggregate amount of FHA Title VI 
mortgages on defense housing that could be insured from $100 
million to $300 million.

                  Emergency Price Control Act of 1942

                 (Public Law 77-421, January 30, 1942)

     Among other things, authorized Federal rent 
control.

              Establishment of the National Housing Agency

               (Executive Order 9070, February 24, 1942)

     Established the National Housing Agency and 
transferred to that Agency responsibility for substantially all 
the nonfarm housing programs of the Federal Government (except 
housing located on military or naval reservations or bases). 
The Federal Home Loan Bank Administration, the Federal Housing 
Administration, and the Federal Public Housing Authority were 
created as constituent agencies of the National Housing Agency, 
which was to be headed by an Administrator.

Federal Tax Exemption of Income from FHA Debentures and Federal Savings 
                         and Loan Associations

                  (Public Law 77-510, March 28, 1942)

     Terminated Federal tax exemption of income from 
FHA debentures (except those issued under insurance contracts 
entered into prior to March 1, 1941), and income from Federal 
savings and loan associations.

                   Amendments to National Housing Act

                   (Public Law 77-559, May 26, 1942)

     Added Section 608 to provide FHA mortgage 
insurance for rental housing for war workers. Limits on the 
amounts of the mortgages were based on replacement cost. 
Increased the limit on aggregate amount of mortgages that could 
be insured under the Title VI program from $300 million to $800 
million. (Authority to insure mortgages under Title VI was 
terminated by the Housing Act of 1954, P.L. 83-560, August 2, 
1954)
     Increased limits on the amounts and term of 
mortgages financing one-to four-family homes.
     Permitted mortgages to be insured under Title VI 
if FHA found the property to be an ``acceptable risk,'' rather 
than economically sound, as generally required under other 
programs and previously required for the Section 603 one- to 
four-family home mortgages.
     Named the Title VI programs War Housing Insurance.

                   Amendments to National Housing Act

                   (Public Law 78-15, March 23, 1943)

     Increased the limit on the aggregate amount of 
mortgages that could be insured under Title VI to $1.2 billion.

                   Amendments to National Housing Act

                 (Public Law 78-159, October 15, 1943)

     Increased the aggregate amount of mortgages that 
could be insured under Title VI to $1.6 billion.
     The prohibition against insurance of mortgages 
covering existing housing under the Title II program was made 
applicable to mortgages insured after July 1, 1946, rather than 
July 1, 1944, as previously provided.

                     Servicemen's Readjustment Act

                   (Public Law 78-346, June 22, 1944)

     Authorized the guaranty by the Veterans' 
Administration of loans with liberal terms made to veterans to 
purchase, build, or improve homes.

               Amendment to Title VI War Housing Program

                   (Public Law 78-392, June 30, 1944)

     Increased the aggregate amount of mortgages that 
could be insured under Title VI to $1.7 billion from $300 
million.

       War Mobilization and Reconversion Act of 1944, Section 501

                  (Public Law 78-458, October 3, 1944)

     Authorized the Federal Works Administration to 
make loans or advances (from funds authorized to be 
appropriated and until June 30, 1947) to States and their 
agencies and subdivisions (Public Agencies) for advance 
planning of public works which would be in conformance with 
overall plans approved by competent State, local or regional 
authority. Advances needed to be repaid only when and if 
construction was undertaken, but the making of advances did not 
commit Congress to appropriate funds for construction of 
projects as planned. (Program transferred to HHFA under 
Reorganization Plan 17 of 1950.)

             Amendments to FHA Title VI War Housing Program

                   (Public Law 79-27, March 31, 1945)

     Increased the aggregate amount of mortgages that 
could be insured under Title VI from $1.7 billion to $1.8 
billion.
     Authorized insurance under Title VI of mortgages 
covering the purchase of housing from FHA that it had acquired 
as a result of foreclosure or otherwise.

                        Amendments to Lanham Act

                   (Public Law 97-87, June 24, 1945)

     Added Title V to authorize the use of public war 
housing (provided under the Act for defense and war workers) 
for distressed families of servicemen and veterans and their 
families.
     Made funds available for Lanham Act housing 
available for the construction of temporary housing for 
families of servicemen and veterans.

    House Special Committee on Postwar Economic Policy and Planning

            (House Report 852, 79th Congress, July 3, 1945)

     Recommended as part of a long-range program of 
public works and construction:
          a. FHA insurance programs for housing mortgages 
        should be further liberalized to include additional 
        housing provision incentives, such as yield insurance 
        for rental housing.
          b. Further Federal assistance to local communities to 
        assist in the provision of low-rent public housing.
          c. Federal assistance in the technical development 
        and financing of housing, utilizing improvements in 
        materials and construction methods.

 Recommendations of Subcommittee on Housing and Urban Redevelopment of 
      the Senate Committee on Postwar Economic Policy and Planning

                   (Committee Print, August 1, 1945)

     Recommended:
          a. Legislation designed to achieve an adequate supply 
        of housing. (Needs were estimated at 1,200,000 new 
        dwellings per year for the next 10 years.)
          b. A statement of national policy should be made that 
        the predominance of private enterprise should be 
        maintained, and Government participation should be 
        limited to supplementing private enterprise.
          c. A permanent National Housing Agency should be 
        established operating through three constituent 
        agencies.
          d. A comprehensive attack on the farm housing problem 
        should be developed.
          e. Aids to private enterprise through the Federal 
        Home Loan Bank Administration and the Federal Housing 
        Administration should be continued with revisions and 
        additions to encourage lower-priced housing and 
        investment in rental housing.
          f. There should be amplification of Government 
        research into construction methods and techniques, 
        markets, and needs.
          g. The program of urban low-rent public housing 
        should be extended.
          h. Federal assistance should be provided to local 
        communities for slum clearance and urban redevelopment.

                Amendments to Title V of the Lanham Act

                 (Public law 79-292, December 31, 1945)

     Authorized funds for disassembling, transporting, 
re-erecting, and converting surplus war structures on land 
supplied by educational institutions, State and local bodies, 
and nonprofit organizations, to provide housing for veterans 
and their families, and distressed families of servicemen.
     Authorized Federal agencies to transfer to the 
National Housing Administrator surplus structures, equipment, 
and materials for conveyance to educational institutions and 
local bodies for housing for veterans and distressed families 
of veterans.

                   Organization for Veterans' Housing

                (Executive Order 9686, January 26, 1946)

     Established the Housing Expediter to formulate 
plans and programs and to recommend legislation for the 
provision of housing, particularly at moderate prices and 
rentals, for veterans, and directed executive agencies to 
exercise emergency and other powers to this end.

                Veteran's Emergency Housing Act of 1946

                   (Public Law 79-388, May 22, 1946)

     Designed to speed the availability of housing for 
veterans by expediting the production and allocation of 
materials, by curbing excessive prices of new housing, and 
utilizing FHA Title VI war housing program for veteran's 
housing. The authorities expired December 31, 1947.
     Confirmed the Office of the Housing Expediter and 
the powers granted to the Expediter by Executive Order 9686, 
supra. (The office was terminated by the Housing and Rent Act 
of 1947 (P.L. 82-96, July 31, 1951))
     Strengthened the powers of the Expediter to 
establish ceiling prices and rents for new housing, and to 
allocate or establish priorities for the delivery of materials 
or facilities for housing.
     Authorized RFC to make premium payments to 
producers of building materials under prescribed conditions.
     Authorized RFC to guarantee markets for new type 
building materials and prefabricated houses.
     Raised the limit on the aggregate amount of 
mortgages that could be insured under Title VI of the National 
Housing Act to $2.8 billion with authority in the President to 
increase the limit to $3.8 billion.
     Required the FHA to prescribe procedures for 
giving World War II veterans and hardship cases priorities in 
the purchase or rental of Title VI housing, thus changing the 
program from a war housing to a veterans' housing program.
     Made ``necessary current cost'' the basis for 
determining the maximum amount of a mortgage that could be 
insured under Title VI, and provided higher dollar mortgage 
limits for one- to four-family home mortgages in high-cost 
areas.
     Lowered the maximum interest rate on Title VI 
mortgages to 4 percent (from 5 percent, or 6 percent where the 
mortgage market demanded a higher rate).

                   Amendments to National Housing Act

                   (Public Law 79-480, July 1, 1946)

     Repealed provisions in Title II which prohibited 
insurance of mortgages on existing housing after July 1, 1946, 
and limited the aggregate amount of such mortgages insured 
after June 3, 1939 to 35 percent of the mortgages insured under 
Title II.

     Secondary Market for Servicemen's and Veteran's Housing Loans

                  (Public Law 79-656, August 7, 1946)

     Authorized RFC to provide a secondary market for 
loans guaranteed or insured under the Servicemen's Readjustment 
Act of 1944. (This authority was terminated by the 
Reconstruction Finance Corporation Extension Act, P.L. 80-132, 
June 30, 1947)

                Farmers Home Administration Act of 1946

                  (Public Law 79-731, August 14, 1946)

     Created the Farmers Home Administration in the 
Department of Agriculture.
     Amended the Bankhead Jones Farm Tenant Act to 
include veterans' preference in direct loans to finance the 
purchase, enlargement or improvement of farms, and the 
insurance of loans made by private lending institutions for the 
same purposes.
     Separation of Housing Expediter and National 
Housing Administrator Offices (Executive Order 9820, January 
1,, 1947)
     Segregated the functions and offices of the 
Housing Expediter and National Housing Administrator in line 
with the contemplated phasing out of most features of the 
veterans' emergency housing program and powers.

                      Housing and Rent Act of 1947

                   (Public Law 80-129, June 30, 1947)

     Repealed the Veterans Emergency Housing Act except 
for certain provisions.
     Authorized FHA Section 609 insurance of loans to 
finance the manufacture of prefabricated houses.
     Required veterans' preference in the sale and 
rental of new housing.
     Authorized the Housing Expediter to require 
permits for the construction of amusement and recreation 
facilities.
     Continued rent control and placed its 
administration in the Office of Housing Expediter.

            Reconstruction Finance Corporation Extension Act

                   (Public Law 80-132, June 30, 1947)

     Eliminated authority of the RFC to provide a 
secondary market for mortgages guaranteed or insured under the 
Servicemen's Readjustment Act of 1944 and provided for the 
transfer of all assets and liabilities of the RFC Mortgage 
Company to RFC. (The RFC Mortgage Company was dissolved on 
April 8, 1948.)

                   Termination of Certain War Powers

                   (Public Law 80-239, July 25, 1947)

     Started the two-year period provided under the 
Lanham Act for removal of temporary war and veterans' housing, 
and also the 10-year period during which applications for 
guarantees and insurance of home loans under the Servicemens' 
Readjustment Act of 1944 could be made.

                       Joint Committee on Housing

         (H. Con. Resolution 104, 80th Congress, July 26, 1947)

     Established and authorized to study all phases of 
housing. (The Committee conducted hearings in Washington and 32 
other cities.)

               The President's Reorganization Plan No. 3

                       (Effective July 27, 1947)

     Established a permanent Housing and Home Finance 
Agency to succeed the National Housing Agency.
     Directed the Housing and Home Finance 
Administrator to coordinate the supervisory functions of three 
constituent agencies--the Home Loan Bank Board, the Federal 
Housing Administration, and the Public Housing Administration.
     Established the National Housing Council with 
representation from several other agencies concerned with 
housing to promote the most effective use of Federal housing 
functions and activities.

                 Amendments to U.S. Housing Act of 1937

                   (Public Law 80-301, July 31, 1947)

     Permitted local housing agencies to exceed 
statutory cost limits if they provided the difference between 
the limits and actual construction costs.
     Prohibited eviction of over-income tenants from 
low-rent public housing if the eviction would result in undue 
hardship.

                   Amendments to National Housing Act

                  (Public Law 80-366, August 5, 1947)

     Authorized FHA to insure under Title VI mortgages 
financing the purchase of Federally-owned permanent war 
housing.
     Increased the amount of mortgages that could be 
insured under the Title VI veterans' housing program.

                       Joint Committee on Housing

           (House Report 1564, 80th Congress, March 15, 1948)

     The final majority report of the Joint Committee 
on Housing recommended comprehensive housing legislation 
designed to achieve production of 1,250,000 to 1,500,000 
dwellings per year. Specific recommendations included:
          a. A statement of firm national housing policy;
          b. Authorization of a research program aimed at 
        reduction of housing costs;
          c. Placing FHA mortgage insurance on a permanent 
        basis;
          d. Authorization of Federal insurance of yield on 
        equity investment to encourage lower-cost homes and 
        moderate rental housing;
          e. Broadening of secondary market in Government for 
        both FHA-insured and VA-guaranteed and insured housing 
        loans;
          f. Insurance of credit and direct RFC loans to 
        prefabricators and other mass producers of housing;
          g. Federal aid for slum clearance;
          h. Provision of additional low-rent public housing;
          i. Improvement of farm housing.

                    The Housing and Rent Act of 1948

                  (Public Law 80-464, March 30, 1948)

     Extended rent control and veterans' preference in 
new housing to April 1, 1949.
     Extended the prohibition against eviction of over-
income tenants from low-rent public housing.

        Purchase Price of Permanent War Housing Sold to Veterans

                   (Public Law 80-689, June 19, 1948)

     Directed that the purchase price of permanent war 
housing sold to veterans be at apportioned cost or appraised 
value, whichever is less.

                        Amendments to Lanham Act

                   (Public Law 80-796, June 28, 1948)

     Authorized the Federal interest in veterans' 
temporary reuse housing located at education institutions to be 
transferred to the educational institutions. Housing so 
transferred, when approved by local governing body, was 
exempted from Lanham Act removal requirements applicable to 
temporary housing.
     Extended the date by which other temporary war and 
veterans' reuse Lanham Act housing was to be removed to January 
1, 1950.
     Made war housing constructed under Public Law 76-
781 and the Temporary Shelter Act subject to the disposition 
provisions of the Lanham Act.

           Government Corporations Appropriation Act, FY 1949

                   (Public Law 80-860, June 30, 1948)

     Transferred the capital stock and all assets and 
liabilities of the Defense Homes Corporation to the RFC for 
liquidation.

  Amendments to National Housing Act and Servicemens' Readjustment Act

                   (Public Law 80-864, July 1, 1948)

     Established the Federal National Mortgage 
Association (FNMA) by statute, using the name of the 
organization previously chartered by FHA.
     Extended FNMA secondary market authorization to 
include GI-guaranteed or insured home and farm loans, but 
limited all purchases to certain GI and FHA loans executed 
after April 30, 1948 (restricted to sales housing).
     Authorized FHA insurance of 95 percent mortgages 
on veterans' cooperative housing under Title II of the National 
Housing Act.

                   Amendment to Homeowners' Loan Act

                   (Public Law 80-895, July 3, 1948)

     Authorized conversion of Federal savings and loan 
associations to State-chartered associations.

   Special Subcommittee of the Senate Banking and Currency Committee

                (Senate Document 80-202, August 7, 1948)

     Appointed to develop acceptable housing 
legislation for the Special Session of the 80th Congress, 
recommended that, in view of the controversial nature of the 
proposals for additional public housing, the subject-matter be 
dropped from the current bill and submitted for consideration 
on its merits in the subsequent Congress.

                          Housing Act of 1948

                  (Public Law 80-901, August 10, 1948)

     Passed by the Special Session of the 80th Congress 
called by the President for the enactment of housing 
legislation. Said to have three principal objectives:
          (i) to make credit more easily available to veterans 
        and others for lower-cost homes, and to tighten up to 
        some extent credit on more expensive homes, thus 
        channeling scarce materials into lower-cost homes;
          (ii) to liberalize loans on the lower-cost rural and 
        semirural homes which did not qualify for FHA loans;
          (iii) to accomplish the standardization of building 
        codes and measurements in the building industry.
Major Provisions
     Terminated FHA's authority to insure mortgages on 
one- to four-family homes under Title VI.
     Extended FHA's authority under Title VI to insure 
mortgages financing rental housing and raised amount of 
mortgages that could be insured to $6,150 million, including 
$400 million available only after release by the President.
     Continued the ``necessary current cost'' basis for 
the amount of an FHA-insured mortgage under Section 608 rental 
housing, but with the additional limitation that the amount of 
the mortgage could not exceed 90 percent of the estimated 
replacement cost of the project on the basis of December, 1947, 
prevailing costs.
     Substituted a per-family unit cost limit for the 
per-room limit applicable to Section 608 rental housing.
     ``Perfected'' the FHA Section 609 mortgage 
insurance program for assistance to manufacturers of 
prefabricated housing, and made available insurance of short-
term credit to dealers.
     Made available FHA Section 610 mortgage insurance 
for the purchase of the so-called Greenbelt towns sold by the 
government.
     Authorized FHA to insure construction advances 
under insured mortgages which covered property on which there 
was to be constructed 25 or more family units consisting of a 
group of one-family dwellings. Provisions were applicable to 
cases where the builder had located on the property a plant for 
the fabrication of the dwellings or parts of the dwellings, and 
the advances could cover the cost of materials delivered to the 
property and labor performed in construction, fabrication, or 
erection.
     Liberalized the Section 203 home mortgage 
insurance program to encourage the production of houses in the 
lower-priced range and to facilitate the transition from the 
emergency Title VI program. Among other things, made mortgages 
on new single-family dwellings up to $6,000 covering up to 95 
percent of value eligible for insurance, and increased the 
maximum amortization period of all mortgages financing new 
homes to 25 years, and in the case of the 95 percent mortgage 
up to $6,000, to 30 years.
     To stimulate building activity in the low-cost 
field, authorized FHA to make firm mortgage insurance 
commitments to builders of such housing in amounts up to 85 
percent of appraised value.
     Made State-regulated redevelopment and other 
housing corporations eligible for FHA rental housing mortgage 
insurance.
     Amended the FHA Section 207 rental housing 
mortgage insurance program by:
          (i) including in the statutory definition of project 
        ``value'' and ``costs'' certain previously excluded 
        costs, such as taxes, utilities, financing charges, and 
        other expenses;
          (ii) authorizing insurance of mortgages up to $50 
        million in amount (general limitation $5 million) where 
        the housing project was undertaken by a Federal, State 
        or municipal instrumentality, or a limited-dividend, 
        redevelopment, or housing corporation restricted by 
        Federal or State laws or regulations of State banking 
        or insurance departments;
          (iii) substituting per-family unit limits for per-
        room limits on the amount of the mortgage;
          (iv) authorizing a special supplemental program of 
        mortgage financing of rental projects for families of 
        lower income involving a combination of a 90 percent 
        loan, 40-year maturity, and a maximum interest rate of 
        4 percent;
          (v) making this liberalized program (iv above), 
        available for cooperative-ownership housing undertaken 
        by nonprofit cooperative housing corporations;
          (vi) providing increased insurance benefits to 
        mortgage lending institutions; and
          (vii) permitting mortgage limits to be based on 
        replacement costs and per-room limits where the needs 
        of veterans' housing cooperatives could be more 
        adequately met by such limits.
     Increased the FHA Title I authorization for home 
improvement and modernization (and to a limited extent, 
construction) loan insurance by $35 million, and authorized 
insurance of multifamily house loans of up to (i) $10,000 in 
amount (general limit was $2,500) and (ii) seven years 
maturity.
     Authorized RFC to make loans for the production of 
prefabricated houses or prefabricated housing components, or 
for large-scale modernized site construction.
     Made new rental housing loans insured by the FHA 
eligible for purchase by FNMA, and raised the limit on the 
amount of FHA and VA mortgages in the portfolio of a single 
mortgagee which could be purchased by FNMA from 25 percent to 
50 percent.
     Directed the Housing and Home Finance 
Administrator to undertake technical research and studies for 
the development and promotion of standardized building codes 
and regulations, and standardized dimensions and methods for 
the assembly of home-building materials and equipment.
     Authorized a special FHA yield insurance program 
designed to encourage equity investment in rental housing at 
rents within the capacity of families of moderate incomes by 
guaranteeing, to those making such an investment to the extent 
of 100 percent of project cost, a minimum return (exclusive of 
amortization) of not exceeding 2 \3/4\ percent per annum on 
outstanding investment until such time as only 10 percent of 
the original capital investment remained unamortized. 
Authorized an appropriation of $10 million to be made to the 
Secretary of the Treasury for use in this program by the FHA 
Commissioner.
     Title V of the Act contained basic administrative 
provisions including the power of the Administrator and heads 
of constituent agencies to delegate and authorize successive 
redelegations of powers and functions; general authority for 
appropriations to carry out functions, powers and duties for 
administrative expenses; and other significant provisions 
relating to contracts, expenditures, and the handling of and 
accounting for funds.
     Eliminated the restriction on removal of over-
income tenants from low-rent public housing projects. Housing 
and Rent Act of 1949 (Public Law 81-31, March 30, 1949)
     Extended: a. Rent control through June 30, 1950; 
and b. Veterans' preference in new housing through June 30, 
1950. Alaska Housing Act (Public Law 81-52, April 23, 1949)
     Provided special Federal assistance to housing in 
Alaska, including: a. More liberal FHA mortgage insurance; b. 
Federal loans: c. FNMA to provide a more liberal secondary 
mortgage market; d. Construction of sale or rental housing by 
the Alaska Housing Authority; e. Housing construction and 
repair loans to be made by the Alaska Authority; f. $15 million 
in Federal loans to the Alaska Housing Authority (through the 
purchase of the Authority obligations) by theHousing and Home 
Finance Administrator. Sale of Suburban Resettlement Projects 
(Public Law 81-65, May 19, 1949)
     Authorized sale of the suburban resettlement 
projects known as Greenbelt, Md., Greendale, Wisconsin, and 
Greenhills, Ohio, by means of negotiated sale and without 
competitive bidding or public advertising. A sales preference 
was to be given to nonprofit organizations of veterans and 
tenants.

                          Housing Act of 1949

                   (Public Law 81-171, July 15, 1949)

National Housing Policy and Goal
     Declared the national housing policy to be that 
the general welfare and security of the Nation required the 
realization as soon as feasible of the goal of a decent home 
and suitable living environment for every American family.
     Provided that private enterprise should be 
encouraged to serve as large a part of the total need as it 
could and that governmental assistance should be given to the 
elimination of standard and inadequate housing through 
clearance of slums and blight and to the provision of adequate 
housing for families of low incomes where the need was not 
being met by private enterprise.
Title I--Slum Clearance and Urban Redevelopment
     Authorized $1 billion in loans and $500 million in 
capital grants over a five-year period to localities to assist 
slum clearance and community development and redevelopment 
programs. To be eligible for grants, project areas were to be 
predominantly residential in character either before of after 
redevelopment, or both.
     Authorized advances to finance planning of 
projects, and loans for the acquisition and clearance of land 
and its preparation for reuse.
     Authorized capital grants to help meet the loss 
involved in slum clearance. The loss was to be shared on a two 
to one basis the Federal Government making up two- thirds of 
the loss and the local government one-third. The local share 
could be provided in cash or through the provision of parks, 
schools, or other public facilities necessary to serve the new 
uses of the land in the project areas, or the use of municipal 
labor and equipment to clear a project area.
     Federal advances were made payable from the first 
proceeds of temporary loans made to finance the projects. 
Temporary loans were repayable from the proceeds of the sale of 
the land, Federal grants, local cash grant-in-aid and 
definitive loans. The interest rate on all loans could not be 
less than the going Federal rate, as determined by most 
recently issued Federal bonds of 10 years or more maturity. 
Local government agencies could pledge their contracts for 
Federal loans as security for funds obtained from other sources 
at lower rates of interest. To obtain funds for loans, the 
Housing Administrator could issue notes and other obligations 
for purchase by the Secretary of the Treasury.
     Authorized the Administrator to contract to make 
capital grants, and to make advance or progress payments on a 
grant contract. The faith of the United States was pledged to 
the payment of the grants and appropriations were authorized to 
the extent necessary to provide for payments of the grants.
     Required as a condition to Federal aid that there 
be a feasible method for the temporary relocation of families 
displaced from the project area and the permanent provision of 
decent dwellings at prices and rents within the financial means 
of such families.
     Not more than 10 percent of the funds provided for 
loans or grants could be expended in any one State.
    (New contracts under Title I were prohibited after January 
1, 1975, by the Housing and Community Development Act of 1974, 
P.L. 93-383, August 22, 1974.)
Title II--Amendments to National Housing Act
     Authorized a $500 million increase in FHA Title II 
mortgage insurance, covering homes, rental housing, and 
cooperative housing.
Title III--Amendments to United States Housing Act of 1937
     Authorized Federal contributions and loans for not 
to exceed 810,000 additional units of low-rent public housing.
     Amended the program to facilitate 100 percent 
private-capital financing by the local housing authorities, 
reduce the maximum period of annual contributions from 60 to 40 
years, increase statutory construction cost limits to reflect 
postwar price levels, and provide additional assurance that 
public housing would not compete with decent private housing.
Title IV--Housing Research
     Authorized the Housing and Home Finance 
Administrator to conduct technical research and studies which 
would promote reduction in housing construction and maintenance 
costs and stimulate the increased production in housing.
Title V--Farm Housing
     Authorized the Secretary of Agriculture to provide 
a new program of technical services, loans and grants, and an 
expanded farm housing research program for the improvement of 
farm housing and other farm buildings.
Title VI--Miscellaneous
     Directed the Director of the Census to take a 
census of housing in 1950 and decennially thereafter.
     Amended the National Bank Act to authorize 
national banks and State member banks of the Federal Reserve 
System to purchase or underwrite certain obligations of local 
public housing and slum-clearance agencies.
     Authorized the District of Columbia to participate 
in the slum clearance and urban redevelopment benefits 
authorized under Title I of the Act.

                     Increase in FNMA Authorization

                   (Public Law 81-176, July 19, 1949)

     Increased FNMA authorization to purchase FHA Title 
II and Title VI insured mortgages and VA guaranteed mortgages 
(veterans' loans) to $1.5 billion.
     Added a new Title VIII (Wherry Act Housing) to the 
National Housing Act to provide special FHA mortgage insurance 
for rental housing for military and civilian personnel in areas 
adjacent to military installations, and made these mortgages 
eligible for purchase by FNMA.

 Substantive Legislation in Independent Offices Appropriations Act of 
                                  1950

                  (Public Law 81-266, August 24, 1949)

     Authorized the HHFA Administrator to transfer 
temporary Veterans' Reuse Housing to a State, county, city, or 
other public body in accordance with the terms of Public Law 
80-796 upon application filed within 120 days after August 24, 
1949.
     Limited occupancy in public housing, for contracts 
after April 17, 1940, to U.S. citizens except for families of 
servicemen or veterans. (This provision was continued in each 
annual appropriation act through FY 1954.)
     Annual contributions not to be available for 
payments in lieu of taxes above amounts in original contracts. 
(Found unworkable, this provision was repealed retroactively to 
August 24, 1949, by P.L. 81-358, October 14, 1949.)

                   Amendments to National Housing Act

                  (Public Law 81-278, August 30, 1949)

     Increased the Title II mortgage insurance 
authority (homes and rental housing) to $6 billion.
     Advances for Reserve of Planned Public Works 
(Public Law 81-352, October 13, 1949)
     Authorized the General Services Administration (to 
whom the Federal Works Agency's Advance Planning Program had 
been transferred on July 1, 1949 by P.L. 81-152, June 30, 1949) 
to make loans and advances (for studies, designs, plans, 
working drawings, specifications and other actions preliminary 
to construction of needed public works) to States, subdivisions 
and public agencies. Loans and advances were contingent upon 
conformance of the proposed project to an overall State, local 
or regional plan approved by competent authority therein, and 
were repayable without interest when and if construction began.
     Authorized $100 million to be appropriated and to 
remain available until expended. (Program transferred to HHFA 
under Reorganization Plan No. 17 of 1950, May 24, 1950).

                 Amendments to the National Housing Act

                 (Public Law 81-387, October 25, 1949)

     Increased FNMA's authorization for the purchase of 
mortgages, loans and investments from $1.5 billion to $2.5 
billion.
     Liberalized FNMA's authority to purchase VA 
housing loans.
     Extended the time limit by which temporary war and 
veterans' housing provided under the Lanham Act should be 
removed from January 1, 1950 to January 1, 1951.
     Amended the Federal Reserve Act to permit national 
banks to make FHA Title VIII military housing loans.
      IV. THE 1950s--EVOLUTION OF A COMMUNITY DEVELOPMENT APPROACH

 Report, Subcommittee No. 2 of House Committee on Banking and Currency

           (Committee Print, 81st Congress, January 31, 1950)

     Recommended that the Congress should enact 
legislation as soon as possible to provide for the orderly and 
expeditious disposition of Government-owned and controlled war 
veterans' housing.

        Housing Act of 1950 (Public Law 81-475, April 20, 1950)

Amendments to FHA Insurance Programs
     Increased the limit on the amount of loans that 
could be insured under the FHA Title I programs by $5 million.
     Increased the authorization for the Title II 
mortgage insurance programs by $2.25 billion.
     Increased the authorization for the Section 608 
rental housing program by $500 million.
     Authorized a new Section 8 FHA mortgage insurance 
program for very low-cost homes in suburban and outlying areas 
where it was not practical to obtain conformity with FHA 
property location and other requirements essential for housing 
in built-up urban areas. (This program was terminated by the 
Housing Act of 1954, P.L. 83-560, August 2, 1954.)
     Provided that the loan under Section 8 could be 
insured if found to be an ``acceptable risk'' giving 
consideration to the need of families of low or moderate 
incomes in outlying areas. (Under other programs the loans were 
required to be ``economically sound.'')
     Amended the Title II programs to provide 
incentives for the production of lower-cost homes, especially 
those with three and four bedrooms. FHA could under certain 
circumstances increase the dollar limits on mortgages insured. 
(It was stated in a committee report that the ``several 
escalator clauses are intended to help meet the higher 
construction costs which generally prevail within the larger 
metropolitan areas and under no circumstances shall be 
administered in such a manner as will tend to permit the 
allowable higher mortgage ceilings to become general.'')
     Amended FHA Section 207 rental housing mortgage 
limits to stimulate rental housing construction formerly 
provided by the temporary Section 608 war and veterans' rental 
housing program.
     Added a provision to Section 207 requiring 
certification by the mortgagor that there would be no 
discrimination in the selection of tenants by reason of the 
fact that there were children in the families.
     Authorized a new Section 213 cooperative housing 
mortgage insurance program which liberalized the previous FHA 
cooperative housing mortgage insurance requirements. Mortgage 
limits were made more liberal for veterans' cooperatives.
     Authorized a new Assistant Commissioner of FHA to 
administer cooperative housing programs and furnish technical 
advice and assistance in the organization of cooperatives and 
in the planning, development, construction, and operation of 
their housing projects.
     Increased mortgage insurance authority under the 
Section 608 war and veterans' rental housing program in order 
that applications received prior to March 1, 1950 could be 
processed.
     Made the FHA Section 610 mortgage insurance 
program available for the sale of Government-owned war housing 
in connection with the sale by the Government or any public 
housing agency of war housing constructed under Public Law 76-
671.
     Liberalized FHA requirements for insurance of 
loans for manufactured houses and large-scale site construction 
of housing.
Secondary Market
     Made the new Section 8 FHA insured mortgages on 
low-cost homes eligible for purchase by FNMA.
     Made the 50 percent limitation on the amount of 
certain mortgages which could be sold to FNMA inapplicable to 
VA-guaranteed farm home mortgages (previously done for VA 
nonfarm home mortgages).
     Authorized RFC to provide an additional $250 
million to FNMA for its secondary market operations and 
directed FNMA to exert every effort to sell its present and 
future mortgage holdings in an orderly manner.
     Permitted FNMA to purchase mortgages only if 
guaranteed or insured at time of contract.
Disposition of War and Veterans' Housing
     Added provisions to the Lanham Act for the 
disposition of all war and veterans' housing under the 
jurisdiction of the Housing and Home Finance Administrator.
     Required farm labor camps under the jurisdiction 
of the Secretary of Agriculture to be transferred to the Public 
Housing Administration for management and disposal.
College Housing Loans
     Authorized the Housing and Home Finance 
Administrator to make loans to public or private nonprofit 
institutions of higher learning for housing for their students 
and faculties, where the institution showed that it was unable 
to secure the necessary funds from other sources upon terms and 
conditions generally comparable to the terms provided in the 
Act for loans (40 years and going Federal rate of interest plus 
\1/4\ of 1 percent per annum).
     Authorized the Housing Administrator to issue 
obligations in an amount up to $300 million outstanding at any 
one time to obtain funds for the loans.
Loan Charges and Fees
     Directed FHA to issue regulations limiting the 
charges and fees imposed upon builders, veterans, or purchasers 
in connection with the financing of the construction or sale of 
housing built or sold with the assistance of an FHA-insured or 
loan. Required the mortgagees to certify compliance with the 
regulations. (Repealed in the Housing Act of 1954, P.L. 83-560, 
August 2, 1954.)

                   Amendments to National Housing Act

                    (Public Law 81-498, May 2, 1950)

     Amended Title VIII (FHA mortgage insurance for 
military housing) to permit the military services to employ 
architects to draft plans for housing projects, thus obviating 
the necessity of each prospective sponsor preparing separate 
plans and specifications.

                      Agencies Transferred to HHFA

               (Reorganization Plan No. 17, May 24, 1950)

     The President transferred from the General 
Services Administration to the Housing and Home Finance Agency 
the administration of:
          a. the program of advances to State and local 
        governments for planning public works, and
          b. the management and disposal of sewers, schools, 
        hospitals, and other community facilities constructed 
        under the Lanham Act (war housing law).

                      Housing and Rent Act of 1950

                   (Public Law 81-574, June 24, 1950)

     Extended rent control until December 31, 1950, 
except in localities which declared the continuation was 
required and in such cases to June 30, 1951.
     Continued until June 30, 1951, veterans' 
preference in new housing completed after June 30, 1947.

  Amendments to Federal Home Loan Bank Act and National Housing Act, 
                                Title IV

                   (Public Law 81-576, June 27, 1950)

    In order to strengthen the savings and loan industry and 
the provision of housing credit:
     Increased the insurance by FSLIC of savings 
accounts from $5,000 to $10,000 for each account.
     Required members of Federal Home Loan Banks to 
maintain a minimum liquidity as a condition of membership. 
Effective six months after enactment, no member could make any 
loan at any time when it did not hold cash and obligations of 
the U.S. in such minimum amount as prescribed in regulations to 
be promulgated by the Home Loan Bank Board.
     Required the amount of stockholdings by members of 
Federal Home Loan Banks in their respective Banks to equal at 
least 2 percent of the unpaid principal of the members' home 
mortgage loans within one year. Each Federal Home Loan Bank was 
required to retire an amount of its Government-owned stock 
equal to the amount by which the stock held by members exceeded 
the amount required under the existing law. Annually thereafter 
each Federal Home Loan Bank was required to retire Government 
stock equal to 50 percent of the net increase in members' stock 
since the last previous retirement.
     To assure Government support of the Federal Home 
Loan Banks in supplying the credit needs of their members in 
any possible future emergency in which the Banks could not 
obtain sufficient funds in the private money market, authorized 
the Secretary of the Treasury to purchase Federal Home Loan 
Bank obligations up to a total of $1 billion.
     Directed the Federal Savings and Loan Insurance 
Corporation to retire annually at par an amount of its capital 
stock equal to 50 percent of its net income for each fiscal 
year. (The Corporation's capital stock of $100 million was then 
held by the Secretary of the Treasury.)
     Required FSLIC to pay the Secretary of the 
Treasury a return on the average amount of its capital stock 
outstanding during each fiscal year. This return would be in 
lieu of any and all unpaid dividends whether for any past, 
present, or future period. In addition, required FSLIC to pay 
to the Secretary of the Treasury an amount equal to 2 percent 
simple interest per annum on its capital stock from the time of 
organization of FSLIC to June 30, 1950, less any amount 
previously paid by FSLIC as dividends on the capital stock.
     Authorized FSLIC to borrow from the U.S. Treasury 
such funds as in the judgment of the Home Loan Bank Board were 
required for insurance purposes, not exceeding in the aggregate 
$750 million outstanding at any one time. Repealed other 
borrowing authority of FSLIC.
     Reduced the premium rate paid by insured savings 
and loan associations to the FSLIC from 1/8 of 1 percent of the 
insured accounts and creditor obligations of each insured 
institution of 1/12 of 1 percent.

                    Territorial Enabling Act of 1950

                   (Public Law 81-615, July 18, 1950)

     Permitted the governments of Puerto Rico, Alaska, 
Hawaii, and the Virgin Islands to authorize public bodies or 
agencies to undertake slum clearance and urban redevelopment 
activities, and revised the low-rent public housing enabling 
statutes of Puerto Rico, Alaska and Hawaii to assist the 
program.

              Independent Offices Appropriation Act, 1951

                 (Public Law 81-759, September 6, 1950)

     Extended the deadline established in the 1950 
Appropriation Act (P.L. 81-266, August 24, 1949) to December 
31, 1950, for transferring reuse housing to States and local 
public bodies. Provided that educational institutions and 
nonprofit organizations were eligible to accept transfer of 
such housing.

         Reorganization Plan No. 22 of 1950, September 7, 1950

     Transferred the Federal National Mortgage 
Association from the Reconstruction Finance Corporation to the 
Housing and Home Finance Agency.

         Reorganization Plan No. 23 of 1950, September 7, 1950

     Transferred the lending functions of the 
Reconstruction Finance Corporation with respect to the 
production and distribution of prefabricated houses and 
components to the Housing and Home Finance Agency.

                     Defense Production Act of 1950

                 (Pubic Law 81-744, September 8, 1950)

     Authorized the President to:
          a. control real estate credit;
          b. use priority and allocation powers;
          c. requisition defense departments to guarantee loans 
        made by financial institutions for production and 
        delivery of defense materials.
          Authorized price and wage stabilization and 
        prohibited the hoarding of scarce materials.

                Executive Order 10161, September 9, 1950

     Delegated the function of imposing credit controls 
on Government-aided housing to the Housing and Home Finance 
Administrator.
     Delegated to the Federal Reserve Board the 
function of imposing credit controls on new construction the 
financing of which was not aided by Government agencies. 
(Superseded by Executive Order 10480, August 14, 1953)

               Amendments to Housing and Rent Act of 1947

       (Public Laws 82-8 and 82-69, March 23, and June 30, 1951)

     Extended the provisions of the Act for rent 
control and veterans' preference in housing to June 30, 1951, 
and then for an additional month from June 30.

                   Termination of HOLC (May 29, 1951)

     Announcement was made by the Home Loan Bank Board 
that the Home Owners Loan Corporation had closed its doors 
following delivery of a check for nearly $14 million of surplus 
to the U.S. Treasury.

               Amendments to Housing and Rent Act of 1947

                   (Public Law 82-96, July 31, 1951)

     Provided that the President should administer rent 
control through the Economic Stabilization Agency.
     Terminated the Office of the Housing Expediter.

              Independent Offices Appropriation Act, 1952

                  (Public Law 82-137, August 31, 1951)

     With respect to public housing projects initiated 
after March 1, 1949, prohibited construction starts during 
fiscal 1952 of more than 50,000 units, or construction 
authorization where projects have been rejected by the 
governing body of the locality or by public vote. (The 
provision prohibiting construction in localities rejecting 
public housing was repeated in each fiscal year through 1954.)
     Prohibited additional prefabricated housing loans 
by the Housing Administrator unless for the furtherance or 
refinancing of an existing loan determined to be in the best 
interest of the Government.
     Rescinded contract authority for Public Works 
Planning Advances. (This program, initiated under P.L. 81-352, 
was terminated October 13, 1951.)

   Defense Housing and Community Facilities and Services Act of 1951

                 (Public Law 82-139, September 1, 1951)

     Authorized $50 million for the provision of public 
defense housing in critical defense areas where housing could 
not be provided in any other manner.
     Authorized $60 million for loans and grants for 
assistance to or the provision of community facilities and 
services in critical defense areas.
     Added Title IX to the National Housing Act to 
provide a new liberal FHA mortgage insurance program for 
certain defense housing.
     Increased the total FHA insurance authorization by 
$1.5 billion.
     Permitted FHA limits on the maximum amounts of 
mortgages on housing in Alaska to be increased up to one-half 
instead of one-third.
     Authorized the Housing Administrator to provide 
sites for necessary development in connection with isolated 
defense installations.
     Authorized loans to assure the maintenance of 
industrial capacity for the production of prefabricated houses 
and housing components for defense purposes. (Authority was 
terminated by Housing Amendments of 1953, P.L. 83-94, as of 
June 30, 1954.)
     Authorized FNMA until December 31, 1951 to make 
commitments to purchase mortgages on defense housing or housing 
for families who were victims of disaster.
     Authorized the President to extend time limits 
beyond which vacancies in Lanham Act war housing were not to be 
filled.

                       Amendments to Housing Acts

                 (Public Law 82-214, October 26, 1951)

     Amended the low-rent public housing law, the 
Lanham Act war housing law, and the FHA cooperative mortgage 
insurance law to grant veterans' preferences to veterans of the 
Korean conflict.

                        FNMA Advance Commitments

                 (Public Law 82-243, October 30, 1951)

     Authorized FNMA to make advance commitments 
aggregating up to $30 million at any one time to purchase FHA 
cooperative housing mortgages.

                      Investigation of VA and FHA

                    (H. Res. 82-436, February 1952)

     Authorized a special Subcommittee on House Banking 
and Currency Committee to be established to investigate the 
guaranteeing and insuring of housing loans by VA and FHA.

                 Additional Advance Commitments by FNMA

                   (Public Law 82-309, April 9, 1952)

     Authorized FNMA to make additional advance 
commitments up to $252 million to purchase defense or disaster 
housing mortgages.

               Defense Production Act Amendments of 1952

                   (Public Law 82-429, June 30, 1952)

     Extended the authority to control real estate 
credit to June 30, 1953.
     Required relaxation of real estate credit control 
whenever for any consecutive three months the annual rate of 
starts of houses fell below 1,200,000 units.
     Continued priorities and allocation powers to June 
30, 1953.
     Continued rent control until September 30, 1952, 
except that under certain conditions in certain localities rent 
control might be continued to April 30, 1953.

              Substantive Provisions in Appropriation Act

                   (Public Law 82-455, July 5, 1952)

     Limited new units which could be authorized for 
construction during FY 1953 to 35,000 and during subsequent 
years to 35,000 unless more were authorized in appropriation 
acts.
     Prohibited occupancy by subversives, as designated 
by the Attorney General. (This prohibition was repeated in the 
1954 Appropriation Act, P.L. 83-176, July 31, 1953.)

                          Housing Act of 1952

                   (Public Law 82-531, July 14, 1952)

     Authorized an additional $400 million of FHA 
mortgage insurance for defense, military and disaster housing.
     Increased the limit on the amount of commitments 
by FNMA which could be outstanding for the purchase of defense 
and disaster housing mortgages by $900 million.
     Changed the law governing the purchase of 
mortgages by FNMA to assure adequate purchase authority for 
defense and disaster housing.
     Increased the authorization for appropriations for 
defense housing from $50 million to $100 million and for 
defense community facilities and services from $60 million to 
$100 million.
     Increased the authorization for appropriations for 
the purchase by the Housing and Home Finance Administrator of 
bonds of the Alaska Housing Authority from $15 million to $20 
million. (The proceeds of the bonds were used for housing loans 
to public agencies or private nonprofit or limited dividend 
housing in Alaska or for housing provided by direct 
construction by the Authority.)
     Amended the laws governing the FHA mortgage 
insurance program, the Federal Savings and Loan Insurance 
Corporation, the Federal Home Loan Bank System, the 
prefabricated housing loan program and Federal assistance in 
the provision of sites for isolated defense installations to 
permit these programs to operate in Guam.
     Authorized Federal savings and loan associations 
to purchase loans secured by first liens on improved real 
estate which were insured by the FHA without regard to the 50 
mile area restriction previously applicable.
     Authorized FHA to insure mortgages made to finance 
the sale of multi-unit housing projects by States or 
municipalities or their public agencies where the housing is 
permanent and was constructed by the State or other public body 
primarily for veterans of World War II.
     Amended the Lanham Act to permit the President to 
extend the December 31, 1952, date prescribed for the removal 
of temporary war and veterans housing.
     Directed the Secretary of the Treasury to cancel 
notes of the HHFA Administrator to the extent of net losses 
sustained by the HHFA in the liquidation of defaulted loans on 
prefabricated housing.

               Relaxation of Residential Credit Controls

                 (Executive Order 10373, July 14, 1952)

     Delegated to the Federal Reserve Board the 
authority to announce (subject to HHFA concurrence) the 
beginning or termination of a period of relaxed residential 
credit controls.

                            Disaster Relief

               (Executive Order 10427, January 16, 1953)

     Transferred the directing and coordinating 
functions delegated to the HHFA Administrator under Executive 
Order 10221 (supra) to the Office of Emergency Planning.

                   Amendments to National Housing Act

                   (Public Law 83-5, March 10, 1953)

     Increased the FHA Title I home moderation and 
repair loan insurance authorization by $500 million.
     Made provision for repayment to the Treasury 
before June 30, 1954, of the $8.3 million Government investment 
in the FHA Title I insurance fund.

                    Housing Credit Controls Removed

                   (Federal Register, April 18, 1953)

     Remaining controls on housing were removed by the 
Housing Administrator.

                      Housing and Rent Act of 1953

                   (Public Law 83-23, April 30, 1953)

     Allowed Federal rent controls to expire July 31, 
1953, except that the expiration date was extended to April 30, 
1954, in critical defense housing areas.

                         Disposition Functions

                 (Executive Order 10462, June 19, 1953)

     Delegated functions of the President relating to 
the timing of the disposition of Lanham Act Housing (World War 
II and Veterans' Emergency Housing, Section 611) to the HHFA 
Administrator.

                       Housing Amendments of 1953

                   (Public Law 83-94, June 30, 1953)

FHA Mortgage Insurance Authorization
     Increased the FHA mortgage insurance authorization 
by $1.5 billion.
     Allowed the President to make allocations from 
that amount to the various FHA mortgage insurance programs as 
needed.
FHA Low-Cost Homes
     Authorized the President to allow more liberal 
loan-to-value ratios and longer maturities for FHA-insured 
mortgages under the Section 203 program on new owner-occupant 
homes.
     Permitted increases in mortgage amounts of FHA 
Section 8 low-cost homes in outlying and suburban areas.
Section 207 Rental Housing
     Increased the maximum mortgage amounts of 
mortgages insured by FHA under its Section 207 rental housing 
program.
Higher FHA Mortgage Maximums in Hawaii
     Authorized the Federal Housing Commissioner to 
permit the maximum amounts of mortgages financing homes in 
Hawaii to be increased up to, but not exceeding 50 percent, if 
he finds that, by reason of higher costs prevailing in the 
Territory, it is not feasible to construct sound and livable 
dwellings.
Increases in FHA Statutory Maximums on Interest Rates
     Increased the statutory maximums on FHA interest 
rates on cooperative housing mortgages from 4 percent to 4 \1/
2\ percent (5 percent when covering individual housing in a 
cooperative project), and on Sections 803 and 908 military and 
defense housing mortgages from 4 percent to 4 \1/2\ percent, 
consistent with other FHA programs.
FHA Military and Defense Housing Authorization
     Added provisions to the Title VIII military 
housing mortgage insurance law designed to assure that the 
mortgagor-sponsors or builders of military rental housing have 
an actual investment in the housing over and above funds 
borrowed on the mortgage security, to prevent ``mortgaging 
out.''
     Continued this program and Title IX (for defense 
housing programmed as needed for military or defense workers in 
critical defense housing) until June 30, 1954.
FHA Insurance Funds
     Directed the FHA to repay the Treasury about $57 
million (exclusive of interest) which had been furnished by the 
Treasury for the establishment of some of the FHA insurance 
funds. The repayments were to be made as rapidly as possible 
without impairing the solvency of the insurance funds involved.
     Authorized the Federal Housing Commissioner to 
transfer moneys among the various insurance funds (except the 
Title I repair and improvement loan insurance program). (This 
was to expedite repayment to the Treasury and to assure 
available funds for payments of debentures.)
     Made other changes in the management of the Title 
II mortgage insurance funds.
Regulation of Fees and Charges Relating to VA and FHA Mortgages
     Added a provision to Section 504 of the Housing 
Act of 1950 (P.L. 81-475), which required FHA and VA to limit 
charges and fees imposed upon the mortgagors. The new provision 
was to the effect that the regulations limiting charges and 
fees should not be construed to include any loss suffered by an 
originating lender in the bona fida sale or pledge of or an 
agreement to sell the mortgage. (All of Section 504 was 
repealed by Section 813 of the Housing Act of 1954, P.L. 83-
560, August 2, 1954.)
FNMA
     Extended FNMA's authority to make advance 
commitments to purchase military, defense and disaster housing 
mortgages to July 1, 1954.
     Made additional FHA Section 213 cooperative 
housing mortgages eligible for advance commitments to purchase 
by FNMA.
     Exempted them from the $10,000 per family dwelling 
unit limit which applied to other mortgages purchased by FNMA.
     Authorized FNMA to enter into contracts, in 
connection with the sale of its mortgages, to purchase 
mortgages in amounts not exceeding the amounts being sold. 
(This was designed to encourage the purchase of mortgages from 
FNMA by lenders.) Authority was to expire July 1, 1954, and the 
amount of the contracts was limited to a total of $500 million.
Extension of Defense Housing
     Extended for one year the authority in the Defense 
Housing and Community Facilities and Services Act of 1951 to 
provide Government-constructed temporary defense housing in 
critical defense areas to June 30, 1954.
     The authority for permanent housing was not 
extended.
Termination of Prefabricated Housing Loans
     After June 30, 1954, no prefabricated housing loan 
could be made by the Housing and Home Finance Administrator 
except pursuant to commitments to make loans issued on or 
before June 30, 1953, or where an existing loan held by the 
Administrator on June 30, 1953 was being refinanced.
Extension of Aid to Defense Community Facilities and Services
     Continued the Federal aid for community services 
and facilities in critical defense housing areas to June 30, 
1954.
Capital Grants for Slum Clearance and Urban Redevelopment
     Authorized $35 million in contracts for capital 
grants for slum clearance and urban redevelopment without 
regard to the statutory provision that not more than 10 percent 
of the Federal grants for this purpose could be expended in any 
one State.
Interest Rate on Federal Loans
     Provided a new formula for determining the 
interest rates on Federal loans for slum clearance and urban 
redevelopment, college housing and low-rent public housing.

               Defense Production Act Amendments of 1953

                   (Public Law 83-95, June 30, 1953)

     Extended for two years (until June 30, 1955) the 
priorities and allocations powers.
     Allowed authority for real estate credit controls 
to expire as of June 30, 1953.

                          RFC Liquidation Act

                   (Public Law 83-163, July 30, 1953)

     Provided for liquidation of the RFC.
     Authorized the President up until June 30, 1955, 
through such agency as he might designate, to make loans to 
State and local agencies, and public corporations, boards and 
commissions to aid in financing public projects.

            Independent Offices Appropriation Act of FY 1954

                   (Public Law 83-176, July 31, 1953)

Public Housing
     Prohibited authorization of the commencement of 
construction during FY 1954 of more than 20,000 low-rent public 
housing units, or entering into any new agreements with respect 
to loans or annual contributions for any additional dwelling 
units unless thereafter authorized by Congress.
     Provided, in addition to other prohibitions and 
limitations (not affecting the number of new units) contained 
in the 1950, 1952 and 1953 appropriation acts and continued 
through 1954, that locally unwanted public housing under 
construction could be stopped by the locality, if expenses 
already incurred were repaid to the Government. (None of these 
provisions were continued after FY 1954.)
     Directed the Commissioner of Public Housing to 
make every effort to refund all local bonds on low-rent housing 
converted to war housing, held by PHA under the U.S. Housing 
Act of 1937, as amended. (This proviso was applicable to FY 
1954, and was repeated in the FY 1955 appropriation act, but 
dropped thereafter.)
Urban Renewal
     Directed the Administrator, before approving any 
local program, to give consideration to the efforts of the 
locality to enforce local codes and regulations relating to 
adequate standards of health, sanitation and safety, and to the 
feasibility of achieving slum clearance objectives through 
rehabilitation of existing dwelling units and areas.
     Directed that authority under Title I of the 
National Housing Act (home improvement loans) be used to the 
utmost in connection with slum rehabilitation needs. (This 
proviso was continued in the FY 1955 appropriation act (P.L. 
83-428, June 24, 1954), but dropped thereafter.)
Research
     Closed out the Housing Research Program authorized 
by the Housing Act of 1948 (P.L. 80-901, August 10, 1948) by 
the following proviso: ``* * * that not to exceed $125,000 
shall be available for liquidation of the Housing Research 
Program not later than April 30, 1954.''

               Executive Order 10486, September 12, 1953

     Established the Advisory Committee on Government 
Housing Policies and Programs.

  Report of the President's Advisory Committee on Government Housing 
                         Policies and Programs

                          (December 14, 1953)

Recommended Actions
     Federal assistance to communities to help them 
attack the problem of the spread of slums.
     Long-term FHA mortgage insurance for designated 
older areas to assist building and rehabilitating housing for 
sale or rent.
     Establishment of an advisory service in HHFA to 
help cities keep posted on new techniques for urban renewal.
     Formation outside of Government of a 
representative national organization to help promote renewal of 
towns and cities.
     Making one-third of Federal grants available to 
communities with outstanding performance records in attacking 
urban decay.
     Adapting FHA-insured mortgage lending on new and 
existing homes to the special housing needs of low-income 
families.
     Continuation of low-rent public housing program.
     Preference in admission to low-rent public housing 
be given to low-income families displaced by slum clearance, 
rehabilitation, or other public works, and mortgage insurance 
for displaced families.
     Vigorous activities by public and private 
officials to provide housing for minority families.
     Establishment of privately financed secondary 
market facility to level out peaks and valleys in flow of 
mortgage funds, particularly in the smaller communities and 
areas of chronically short investment capital.
     Grouping of housing activities within a single 
agency, headed by an administrator with supervisory authority.

           President's Special Message to Congress on Housing

               (House Document 83-306, January 25, 1954)

Recommendations
     Broadening existing programs to assist prevention 
of blight and rehabilitation of salvable areas.
     A new program of FHA mortgage insurance for 
housing for low-income families displaced by slum clearance and 
similar activities.
     Additional FHA loan insurance assistance for 
existing housing and rehabilitation of housing.
     Broader authority to the President to adjust from 
time to time, in the light of economic conditions, permissible 
terms on Government guaranteed and insured mortgages.
     Reorganization of FNMA with purchase of initial 
stock by the Federal Government, but with private capital funds 
to be supplied by the users of FNMA.

               Independent Office Appropriation Act, 1955

                   (Public Law 83-428, June 24, 1954)

Included Substantive Legislation
     Ended authority to purchase additional notes or 
obligations after June 24, 1954, from funds appropriated 
pursuant to the Alaska Housing Act (P.L. 81-52, April 23, 1949) 
as amended, except for the furtherance or refinancing of an 
existing loan.
     Established the Revolving Fund, Liquidating 
Programs, to include and account for all assets and liabilities 
of:
          (1) Defense Community Facilities, Title II of Lanham 
        Act (P.L. 76-849, October 10, 1940) or Title III of 
        Defense Housing and Community Facilities and Services 
        Act of 1951 (P.L. 82-139, September 1, 1951);
          (2) Loans and advances pursuant to Title V (First 
        Advance Planning Program) of the War Mobilization and 
        Reconversion Act of 1944 (P.L. 78-458, October 13, 
        1944) or the Act of October 13, 1949 (Second Advance 
        Planning Program, P.L. 81-352);
          (3) Functions transferred under Reorganization Plan 
        23 of 1950 or authorized under Sections 102, 102a, b, 
        and c of the Housing Act of 1948 (P.L. 80-901, August 
        10, 1948) as amended (Prefabricated Housing Loans);
          (4) Notes or other obligations pursuant to the Alaska 
        Housing Act (P.L. 81-52, April 23, 1949);
          (5) Subsistence Homesteads and Greentowns (June 29, 
        1936 and May 19, 1949);
          (6) Public War Housing under Title I of Lanham Act 
        and Defense Housing under Title III of Defense Housing 
        and Community Facilities and Services Act of 1951 
        (Public Law references in (1) above);
          (7) Veterans' Reuse Housing under Title V of the 
        Lanham Act (Public Law reference in (1) above). Amounts 
        determined to be in excess of requirements were to be 
        returned to the Treasury at least annually.
     Provided funds for an agency-wide Compliance staff 
in the Office of the Administrator; and also provided, ``* * * 
and the Administrator's general supervision and coordination 
responsibilities under Reorganization Plan 3 of 1947 shall 
hereafter carry full authority to assign and reassign 
functions, to reorganize and to make whatever changes, 
including the reallocation and transfer of administrative 
expense funds and authority where applicable, necessary to 
promote economy, efficiency and fidelity in the operations of 
HHFA.''

               Amendments to Farmers Home Administration

                   (Public Law 83-438, June 29, 1954)

     Increased the loan authority for farm housing and 
buildings by $8.5 million on and after July 1, 1954.

            Reorganization Plan No. 2 of 1954, July 1, 1954

     Assigned to different agencies the liquidation of 
certain affairs of the Reconstruction Finance Corporation, 
including assignments to the Federal National Mortgage 
Association of the functions relating to mortgages made or 
acquired under the authority of the RFC Mortgage Company or the 
Defense Homes Corporation.

                          Housing Act of 1954

                  (Public Law 83-560, August 2, 1954)

Liberalization of FHA Regular Sales Housing Program
     Amended the FHA Section 203 regular sales housing 
mortgage insurance program to simplify the statutory limits on 
the amounts of mortgages which could be insured and to increase 
the limits on the amounts and terms of the mortgages. Statutory 
distinctions relating to existing housing were simplified and 
liberalized.

New Program for Low-Cost Homes in Disaster Areas (Section 203h)
     Discontinued the Section 8 insurance program for 
low-cost homes and disaster housing.
     Authorized a new program of FHA mortgage insurance 
to take the place of the previous Section 8 program, for 
single-family dwellings in suburban and outlying areas where it 
was found the project is an acceptable risk giving 
consideration to the need for low- and moderate- income 
housing. Mortgages covering construction of farm homes could 
also be insured under the new program where the farm home was 
on a plot of land five or more acres in size adjacent to a 
public highway. The total outstanding insurance on farm 
mortgages could not exceed $100 million. The amount of a 
mortgage was limited to $6,650 and 95 percent of value if the 
mortgagor was the owner-occupant of the property, or $5,950 and 
85 percent of value if the mortgagor was the builder.

Regular FHA Rental Housing Program
     Amended Section 207 of the National Housing Act, 
which authorized the regular FHA mortgage insurance program for 
rental housing, to make it clear it applied to existing 
multifamily structures located in slum or blighted areas.
     Permitted the mortgage limits on elevator type 
structures to be raised by the Federal Housing Commissioner to 
compensate for the higher costs incident to this type 
construction.
     Made special liberal provisions in the Section 207 
rental housing program that were applicable to rental housing 
in Alaska applicable to Guam.

Cooperative Housing--FHA
     Raised FHA mortgage insurance limitations on 
cooperative housing mortgages and the cost basis was changed to 
a valuation basis.
     Struck the statutory provision for an Assistant 
Commissioner for Cooperative Housing.

New FHA Assistance for the Prevention and Rehabilitation of Slums
     Added a new Section 220 mortgage insurance program 
to assist rehabilitation of existing dwellings and the 
construction of new dwellings in slum clearance or urban 
renewal areas. The program covered one- to four-family 
dwellings and multifamily housing. A redevelopment plan or 
urban renewal plan must have been approved for the area and, in 
addition, in the case of an urban renewal area, the locality 
was required to have a ``workable program'' for the elimination 
and prevention of the spread of slums and urban blight which 
had been approved by the Housing Administrator.
     Added a new Section 221 program to provide FHA 
mortgage insurance for low-cost housing for families displaced 
as the result of governmental action in a community which had a 
workable program approved by the Housing Administrator for the 
elimination and prevention of the spread of slums and urban 
blight, or in a community where there was being carried out a 
slum clearance and urban redevelopment project covered by a 
Federal aid contract approved prior to the effective date of 
the Housing Act of 1954. The program was available only in 
communities which had requested it. Displaced families were 
given preferences and priorities of opportunity to purchase or 
rent Section 221 housing. The total number of Section 221 
housing units could not exceed the aggregate number certified 
by the Housing Administrator to be needed for the relocation of 
displaced families.
     Made Section 221 financing available for new 
housing and for mortgages not exceeding 85 percent of value 
covering single-family homes, built, or acquired and repaired 
or rehabilitated for sale, if the financing was required 
pending subsequent sale to a qualified owner-occupant.
     Also made Section 221 mortgage insurance available 
for the repair or rehabilitation and construction of dwellings 
for use by 10 or more families as rental accommodations for 
displaced families where the mortgagor was a private nonprofit 
corporation, association, or organization regulated under 
Federal or State laws.
     Gave mortgagee lenders under the Section 221 
program the option after 20 years if the loan was not in 
default of assigning the mortgage to FHA and receiving in 
exchange 10-year debentures equal to the original principal 
unpaid at assignment plus accrued interest.

FHA Interest Rate
     Made the maximum interest rate on FHA-insured 
mortgages 5 percent per annum or 6 percent if the Commissioner 
found it necessary to meet the mortgage market.
FHA Mortgage Insurance for Servicemen
     Added Section 222 to the National Housing Act to 
authorize FHA mortgage insurance for housing for servicemen in 
the Armed Forces and their families. Premiums on the insurance 
were to be paid by Secretary of Defense so long as the home was 
occupied by a serviceman. The program was also available to 
members of the U.S. Coast Guard, with premiums paid by the 
Secretary of the Treasury.

Insurance of Open-End Mortgages
     Added Section 225 to the National Housing Act to 
authorize FHA to insure advances for basic improvements or 
repairs of a home by a mortgagor where the advances were made 
pursuant to provisions in an open-end mortgage.

FHA Appraisals
     Added Section 226 to the National Housing Act to 
require that the amount of the FHA appraised value of a 
property should be made known to the purchaser of a home for 
his own occupancy prior to the sale. The requirement applied to 
single- and two-family residences and sellers or builders were 
required by FHA to give the purchaser this information.

FHA Military and Defense Housing Program
     Extended the Title VIII FHA military housing 
program for one year, to June 30, 1955.
     Gave the President stand-by authority up until 
July 1, 1955, to authorize the use of the FHA Title XI defense 
housing program during certain periods for specific projects.
     Required dwellings financed by Section 903 
mortgages to be held for rental for at least three years.
     Terminated the Title VI program of insurance for 
rental housing for war workers.

FHA Authorizations
     Merged all FHA authorizations (except Section 2) 
into one general insurance authorization. The total 
authorization equalled the estimated amount of insurance in 
force and commitments outstanding, plus $1 \1/2\ billion. With 
the approval of the President, the total authorization could be 
increased by amounts up to but not to exceed $500 million.

Prevention of Abuses of FHA Programs
     Provisions were contained in the Act to:
          (i) prevent abuse of the home improvement and repair 
        loan insurance program;
          (ii) prevent ``mortgaging out'' by mortgagors where 
        the mortgages financed new or rehabilitated multifamily 
        housing, by requiring cost certification;
          (iii) deny FHA insurance assistance in cases of 
        abuses;
          (iv) prohibit multifamily housing financed with FHA 
        mortgage insurance from being used for hotel purposes; 
        and
          (v) prevent the private or unauthorized use of the 
        initials ``FHA'' or the words ``Housing and Home 
        Finance Agency'' and ``Federal National Mortgage 
        Association.''

Federal National Mortgage Association Charter Act
     Rechartered the Federal National Mortgage 
Association and made provision for the gradual substitution of 
private investment for Federal investment in the capitalization 
of the Association and provision of funds for the purchase of 
mortgages.
     Authorized FNMA, under its new charter to:
          (i) provide a secondary market for FHA and VA home 
        loans, except those insured or guaranteed prior to the 
        effective date of the Housing Act of 1954;
          (ii) provide special assistance with respect to 
        special housing programs, or to retard or stop a 
        decline in mortgage lending and home building when 
        authorized by the President; and
          (iii) manage and liquidate the mortgage portfolio of 
        the former FNMA.
          (Special assistance function was terminated by the 
        Housing and Urban-Rural Recovery Act of 1983, P.L. 98-
        181, November 30, 1983.)
     Included in the special assistance program 
authority to make commitments to purchase and to purchase home 
mortgages, including the new Section 221 mortgages for homes 
for displaced families where necessary.
     Required lenders selling mortgages to FNMA in its 
secondary market functions to make capital contributions to 
FNMA equal to not less than 3 percent of the unpaid principal 
amount of the mortgages involved, or such greater percentage as 
might be determined by FNMA. Common stock was to be issued to 
the mortgage sellers as evidence of their capital 
contributions. Initial capital was subscribed for by the 
Secretary of the Treasury (approximately $10 million) and 
preferred stock was issued to the Treasury.
     Required that, after all of the preferred stock of 
FNMA held by the Treasury had been retired, the Housing 
Administrator transmit recommendations to the President and the 
Congress for legislation placing the secondary market 
operations of FNMA on a privately-owned basis.
     Authorized FNMA to issue obligations for sale to 
the investing public in order to carry out its secondary market 
operations. The aggregate amount outstanding at any time could 
not exceed 10 times the sum of its capital, capital surplus, 
general surplus, reserves, and undistributed earnings. The 
Secretary of the Treasury was authorized to purchase the 
secondary market obligations of FNMA, but not more than $1 
billion. This authority terminated when all of the capital 
stock held by the Treasury had been retired.
     Limited the total amount of purchases and 
commitments to purchase mortgages under FNMA's special 
assistance functions to $200 million outstanding at any one 
time. Also, under these operations, the President could 
authorize FNMA to enter into commitments to purchase immediate 
participations and to make related deferred participation 
agreements up to $100 million outstanding at any one time.

Voluntary Home Mortgage Credit Program (Title VI)
     Established a voluntary home mortgage credit 
program under which private financing institutions undertook to 
make mortgage credit available where needed, particularly in 
remote areas and small communities.
     Established a National Voluntary Credit Extension 
Committee, consisting of the Housing Administrator as Chairman, 
and 14 persons representing lending institutions, home 
builders, and real estate boards. (Regional subcommittees were 
appointed.)

Slum Clearance and Urban Renewal
     Broadened the slum clearance and urban 
redevelopment program of Title I of the Housing Act of 1949 to 
authorize Federal assistance to local communities not only in 
the clearance and redevelopment of slum areas but to help in 
preventing the spread of slums and urban blight through the 
rehabilitation and conservation of blighted and deteriorating 
areas.
     Changed the name of the program to ``Slum 
Clearance and Urban Renewal.''
     Provided that new contracts for Federal assistance 
to slum clearance and urban renewal could not be entered into 
unless the applicant community had presented and had approved a 
workable program for eliminating and preventing slums and urban 
blight.
     Continued the requirement that project areas be 
predominantly residential either before or after redevelopment, 
except that 10 percent of the grant authorization could be used 
for projects not meeting this requirement.
     Made Federal grants available for assistance of 
rehabilitation and conservation projects in accordance with the 
same two-thirds, one-third formula as for slum clearance and 
urban redevelopment projects.
     Provided FHA mortgage insurance assistance 
(Sections 220 and 221, supra) to assist in rehabilitation and 
in rehousing of families displaced by public action.

Low-Rent Public Housing
     Authorized new contracts for low-rent public 
housing to be entered into during FY 1955 for up to 35,000 
additional units.
     Made new contracts available only for communities 
where a slum clearance and urban redevelopment or urban renewal 
project was being carried out with Federal assistance, and only 
if the local governing body of the community certified that the 
housing project was needed to assist in meeting the relocation 
requirements of the urban renewal law by providing housing for 
persons displaced by slum clearance operations.
     Required the community to have a workable program 
for eliminating and preventing slums and blight which had been 
approved by the Housing Administrator before the new contracts 
for public housing could be entered into.
     Provided that the total number of dwelling units 
provided for under the new contracts could not exceed the 
number of such units needed for the relocation of families 
displaced as a result of Federal, State, or local governmental 
action in the community.
     Broadened provisions in the public housing law 
requiring first preference in admission to public housing be 
given to families displaced by public housing or by a slum 
clearance or redevelopment project, to make them applicable to 
families displaced by other activities, such as the closing of 
substandard dwellings or demolition of dwellings by highway 
widening or bridge construction.
     Amended the payments in lieu of taxes provisions 
to assure that the tax payments would not reduce the local 
contributions to public housing below 20 percent of the Federal 
contributions. (Deleted by Section 404, Housing Act of 1964, 
P.L. 88-560.)
     Enacted provisions designed to make the public 
housing program self-liquidating so far as possible.

Urban Planning Grants
     Authorized the Housing Administrator to make 
grants to official State, metropolitan, or regional planning 
agencies empowered under State or local laws to perform 
planning work in metropolitan and regional areas, and to State 
planning agencies for the provision of planning assistance to 
cities and other municipalities with populations of less than 
25,000. Planning to be assisted included surveys, land-use 
studies, urban renewal plans, and technical services. Grants 
could not exceed 50 percent of the estimated cost of the 
planning work.
     Authorized appropriations up to $5 million for the 
grants.

Planned Public Works
     Authorized the Housing Administrator, until July 
1, 1957, to make advances to States, their agencies and 
political subdivisions for the planning of public works (other 
than housing) which conform to an overall State, local or 
regional plan approved by a competent State, local, or regional 
authority.
     Provided that the advances were repayable, without 
interest, if and when the construction of the public works 
contemplated by the advance was undertaken. If payment was not 
made promptly the unpaid amount of the advance would bear 
interest at the rate of 4 percent per annum from the date of 
Federal demand for repayment.
     Authorized up to $10 million to be appropriated 
for the program.

Public Facility Loans
     Amended the RFC Liquidation Act to authorize the 
Housing Administrator (formerly the President) to make the 
loans authorized by that Act to State and local public agencies 
for public facilities.
     Authorized appropriations up to $50 million to 
establish a revolving fund in the Treasury for the loans.
     Extended the termination of the program from June 
30, 1955 to June 30, 1956.

Home Loan Bank Board
     Amended the Federal Home Loan Bank Act to increase 
from $20,000 to $35,000 the maximum home mortgage acceptable as 
collateral security for an advance by a Federal Home Loan Bank.
     Increased the maximum amount of a home loan made 
by a Federal savings and loan association from $20,000 to 
$35,000. Also, the maximum amount of an unsecured home repair 
and improvement loan in which a Federal savings and loan 
association could invest was raised from $1,500 to $2,500.

Builders' Warranty
     Directed the Federal Housing Commissioner to 
require that the builder or seller of a new home built with an 
FHA loan deliver to the purchaser or owner a warranty that the 
dwelling was constructed in substantial conformity with the 
plans and specifications (including approved amendments) on 
which the FHA valuation of the dwelling was based. The 
requirement applied to dwellings designed for not more than 
four families.

College Housing Loans
     Provided that the interest rate on college housing 
loans made by the Housing Administrator be determined on the 
basis of the going Federal rate in effect at the time the loan 
was approved, instead of the time the loan was executed, as 
previously required.

Defense Housing and Community Facilities
     Gave the President standby authority up until July 
1, 1955, to designate periods when aid in the provision of 
defense housing and community facilities and services in 
critical defense areas under the Defense Housing and Community 
Facilities and Services Act of 1951 could be used.

Control of Lenders' Charges and Fees
     Repealed Section 504 of the Housing Act of 1950 
(P.L. 81-475), which directed the Federal Housing Commissioner 
to limit and control the fees and charges imposed by lenders 
upon builders and purchasers. (It was stated that authority for 
the control of fees and charges was otherwise available.)

Farm Housing
     Made additional authorizations of (1) $100 million 
in loan funds for farm housing, (2) $2 million per annum in the 
amount of annual contribution commitments for housing on 
potentially adequate farms, and (3) $10 million for loans and 
grants for improvements and repairs on farm housing.
Advisory Committee
     Authorized heads of HHFA constituent agencies to 
establish advisory committees. (Formerly, under the Housing Act 
of 1949, this authority extended only to the Administrator.)

     Administrator's Reorganization Order No. 1, December 23, 1954

     Established the Community Facilities 
Administration and the Urban Renewal Administration as 
constituents of the Housing and Home Finance Agency.

                     FHA Increase in Authorization

                   (Public Law 84-10, March 11, 1955)

     Provided an interim increase in authorization for 
all FHA loan insurance programs with the exception of the Title 
I home repair and improvement program, to continue the programs 
through June 30, 1955.

                        AE Community Act of 1955

                  (Public Law 84-221, August 4, 1955)

     Authorized FHA to insure mortgages for the 
purchase of housing owned by the Atomic Energy Commission at 
Oak Ridge, Tennessee and Richland, Washington.

                  Amendment to Defense Production Act

                  (Public Law 84-295, August 9, 1955)

     Continued the powers in the Defense Production Act 
for two years.

         Amendment to Terms for National Bank Real Estate Loans

                  (Public Law 84-343, August 11, 1955)

     Lengthened the maximum term of residential real 
estate loans made by national banks from 10 to 20 years, and 
for their construction loans (residential or farm buildings) 
from six to nine months.

                       Housing Amendments of 1955

                  (Public Law 84-345, August 11, 1955)

FHA Loan Insurance
     Increased the FHA loan insurance authorization by 
an amount estimated to be sufficient during FY 1956.

Rental Housing
     Increased the limit on the amount of a multifamily 
housing project mortgage insured by FHA from $5 million to 
$12.5 million in the case of private mortgagors in all 
multifamily FHA programs.
     Made rental housing projects with eight or more 
family units (rather than the previous requirement of 12 or 
more units) eligible for FHA- insured mortgages.

Cooperative Housing
     Directed the Federal Housing Commissioner to 
appoint a Special Assistant for Cooperative Housing.
     Authorized FNMA to enter into advance commitments 
to purchase FHA cooperative housing mortgages, limited to $50 
million outstanding at any one time and $5 million per State.
     Permitted the maximum amount of an FHA-insured 
mortgage financing cooperative housing to be determined on the 
basis of ``replacement cost'' of the project rather than 
``estimated value.''
     Made FHA mortgage insurance available to assist 
cooperatives in the purchase of housing being disposed of by 
the Government.

FHA Section 220 Housing in Slum Clearance or Urban Renewal Areas
     Permitted the maximum amount of an FHA-insured 
Section 220 mortgage financing the construction of housing in 
slum clearance or urban renewal areas to be determined on the 
basis of ``replacement cost'' of the housing rather than 
``estimated value'' where the housing was new construction. In 
the case of rehabilitated housing the maximum amount of the 
mortgage continued to be based on ``value.''

FHA Section 221 Housing for Displaced Families
     Removed the requirement that builders of single-
family homes financed with Section 221 mortgages must provide 
cost certifications.

FHA Mortgage Insurance for Trailer Courts
     Authorized FHA to insure mortgages on trailer 
courts (but not the trailers). Required the projects to be 
economically sound.

Defense Housing Mortgage Insurance
     Continued the availability of FHA Title IX defense 
housing mortgage insurance for any commitments by FHA 
outstanding on August 1, 1955 to insure such mortgages.

FHA Military Housing (Capehart Housing)
     Authorized a new FHA mortgage insurance program 
for housing for military personnel, including the Coast Guard, 
and continued the previous program for certain mortgages. The 
new program was made available until September 30, 1956, with a 
separate insurance authorization.
     Authorized FNMA to make advance commitments to 
purchase the new Title VIII military housing mortgages up to a 
total amount outstanding at any one time of $200 million.

Slum Clearance and Urban Renewal
     Increased the capital grant authorization for 
Federal assistance to slum clearance and urban renewal by $200 
million as of July 1, 1955, and an additional $200 million 
after June 30, 1956. The President was also authorized to 
provide an additional $100 million of authorization.
     Increased the limit on State allocations of 
grants.
     Authorized Federal loans and advances (but not 
grants) to assist the redevelopment of either predominantly 
open land or open land for industrial or other nonresidential 
uses.

Public Housing
     Authorized the Public Housing Administration to 
enter into new contracts for the assistance of up to 45,000 
additional low-rent public housing units prior to July 31, 
1956.
     Removed certain requirements of the Housing Act of 
1954 (P.L. 83-560) which had to be met by local communities 
before a contract for Federal aid to low-rent public housing 
could be entered into. (See 1954 Act, supra for these 
requirements.)

Home Loan Bank Board
     Separated, effective August 11, 1955, the Home 

Loan Bank Board (including the Federal Savings and Loan 
Insurance Corporation) from the Housing and Home Finance Agency 
and established it as an independent agency.
     Changed the name to the Federal Home Loan Bank 
Board.

Planning Advances
     Eliminated the July 1, 1957 expiration date for 
the Section 702 (Housing Act of 1954, P.L. 83-560) advance 
planning program.
     Authorized the Housing Administrator to establish 
a revolving fund for the making of planning advances to local 
agencies for the preparation of a ``reservoir'' rather than a 
``shelf'' of planned public works.
     Authorized additional amounts to be appropriated 
to the revolving fund for three fiscal years. In addition, 
there was authorized to be appropriated such amounts from year 
to year after July 1, 1958, as might be necessary to maintain 
not to exceed a total of $48 million in outstanding advances. 
Public agencies would be required to repay only proportionate 
amounts of advances when only a portion of a planned project 
was undertaken.

New Public Facility Loan Programs
     Authorized the Housing Administrator to purchase 
obligations of, and make loans to, States, municipalities and 
other political subdivisions of States, public agencies and 
instrumentalities of one or more States, municipalities and 
political subdivisions of States, and public corporations, 
boards and commissions established under State laws, to finance 
specific public projects under State or municipal law. No loan 
could be made unless the assistance applied for was not 
otherwise available on reasonable terms, and the securities and 
obligations purchased were required to be of such sound value 
or secured as to assure retirement or repayment. Loans could be 
made either directly or in cooperation with banks or other 
lending institutions. Maturities of the loans were limited to 
40 years.
     Required priority in processing applications for 
loans to be given to municipalities with a population of less 
than 10,000, for assistance in the construction of ``basic 
public works'' urgently and vitally needed.
     Authorized funds for the loans to be obtained 
through Treasury borrowings. Treasury borrowings outstanding at 
any one time could not exceed $100 million.
     Terminated the public facility loan program under 
the Reconstruction Finance Corporation Liquidation Act.
    (New contracts under these programs were prohibited after 
January 1, 1975, by the Housing and Community Development Act 
of 1974, P.L. 93-383, August 23, 1975.)

College Housing Loans
     Authorized college housing loans to be made not 
only for housing, but also for ``other educational 
facilities,'' such as cafeterias, student centers or student 
unions, infirmaries or other health facilities, and other 
essential service facilities.
     Permitted loans to be made to junior colleges and 
nonprofit corporations established by colleges for the sole 
purpose of providing housing or educational facilities for the 
students or faculty.
     Prohibited loans if the educational institution 
could obtain funds from private lending sources upon terms 
``equally as favorable'' as the terms of the Government loan. 
(Prior to this change the educational institutions were 
required to show that they could not secure the funds from 
private sources upon terms and conditions ``generally 
comparable'' to the terms and conditions applied to Government 
loans.)
     Increased maximum term of a loan from 40 years to 
50, with interest rates lower than under previous provisions of 
the program. The new interest rates established by the 
Administrator could not exceed the higher of 2.75 percent or 
0.25 percent more than the Treasury interest rate to him.
     Increased the limit on the Treasury borrowing 
authorization to provide funds for loans from $300 million to 
$500 million, of which no more than $100 million could be used 
for ``other educational facilities.''
Farm Housing
     Provided additional authorization for loans and 
subsidies to farm housing.

                      Lanham Act Personal Property

                  (Public Law 84-349, August 11, 1955)

     Authorized the HHFA Administrator to sell any 
personal property held under the Lanham Act (not sold with a 
project or building) at fair value to any agency organized for 
slum clearance or to provide subsidized housing for low-income 
persons.

                   Amendments to National Housing Act

                 (Public Law 84-405, February 10, 1956)

     Authorized FHA Title I loan insurance for loans to 
repair new homes damaged by major disaster.

                        Disposal of AEC Housing

               (Executive Order 10657, February 14, 1956)

     Transferred to the Housing and Home Finance 
Administrator the functions of disposal of Government-owned 
housing at Oak Ridge, Tennessee, and Richland, Washington.

                          Relocation Payments

                   (H. Report 84-2303, June 11, 1956)

     Subcommittee of House Select Committee on Small 
Business recommended that the Housing and Home Finance 
Administrator be authorized to make payments up to $50,000 to 
small business concerns to compensate them for business losses 
occasioned by their displacement in an urban renewal area.

                   Amendment to National Housing Act

                   (Public Law 84-574, June 13, 1956)

     Made FHA Title VIII mortgage insurance available 
for homes for essential civilian employees of the armed 
services at research and development installations.

         Amendments to the Atomic Energy Community Act of 1955

                   (Public Law 84-802, July 25, 1956)

     Permitted the Housing and Home Finance 
Administrator to make advances for necessary repairs, 
rehabilitation or enlargement of single and duplex residential 
properties at Oak Ridge and Richland bought by priority 
purchasers.
     Authorized the Administrator to finance the 
purchase of commercial property by lessees if private financing 
were not available on reasonable terms.

                  Federal Flood Insurance Act of 1956

                  (Public Law 84-1016, August 7, 1956)

     Directed the Housing and Home Finance 
Administrator to establish a system of indemnification for 
losses sustained in flood and tidal disaster; to reinsure 
private insurance coverage of such losses; and to assure a line 
of credit, where necessary, for the restoration and 
reconstruction of properties damaged or lost as a result of 
flood.
     Provided for establishment of a Federal flood 
insurance plan, a Federal flood reinsurance program, and a 
Federal loan contract program covering flood losses.

                          Housing Act of 1956

                  (Public Law 84-1020, August 7, 1956)

FHA Title I Home Repair and Improvement Program
     Raised the maximum amount of a loan for 
improvement of existing single-family and nonresidential 
structures from $2,500 to $3,500.
     Authorized FHA to increase the maximum maturity of 
such loans from three years to five years if it was determined 
to be in the public interest.
     Raised the limits on a loan for the improvement of 
multifamily structures from $10,000 to $15,000 with an average 
limit of $2,500 per family unit.
     Established a maximum rate for Title I loans of 5 
percent a year, discounted, on the amount of the loan up to 
$2,500, and 4 percent on that portion in excess of $2,500.

FHA Mortgage Insurance
     Permitted the FHA Section 203 maximum ratio of 
loan to value for a mortgage on a dwelling more than a year old 
to be the same as for a new home.
     Increased the maximum amount of a mortgage 
financing disaster housing from $7,000 to $12,000.
     Increased the dollar and per-room limits on FHA 
Section 207 rental housing mortgages, and the maximum ratio of 
loan to value from 80 percent to 90 percent of the estimated 
value of the project.

FHA Housing for the Elderly
     Permitted the downpayment on the purchase of a 
home by a person 60 years of age or over to be made by a 
corporation or person other than the mortgagor where the 
mortgage was insured by FHA under its Section 203 program.
     Added a provision to the Section 207 FHA rental 
housing program which permitted the maximum amount of a 
mortgage to be 90 percent of replacement cost instead of 90 
percent of value where the mortgage financed a project for the 
elderly and the mortgagor was a nonprofit organization. The 
mortgage could finance new construction or rehabilitation.
     Directed the Housing and Home Finance 
Administrator to establish an advisory committee on housing for 
the elderly.

Cooperative Housing
     Reduced the percentage of veteran membership 
required to qualify a cooperative for the most liberal limits 
on an FHA-insured cooperative housing mortgage from 65 percent 
to 50 percent.
     Permitted World War I veterans to be counted in 
determining the percentage.
     Increased the dollar limits per room on 
cooperative housing mortgages insured under the Section 213 
program by not to exceed $1,000 per room in high cost areas.
     Authorized FHA to insure mortgages under the 
Section 213 cooperative housing program where the mortgagor-
builder certified that upon completion of the project it 
intended to sell the project to a nonprofit cooperative. 
Builder's profit could be included.

Mortgage Insurance Authorization
     Fixed the general mortgage insurance authorization 
of FHA at $3 billion outstanding at any one time plus the 
amount of principal balances of insured mortgages and 
commitments as of July 1, 1956.
     Made clear that the Title VIII military housing 
authorization was separate from the general mortgage insurance 
authorization.

Section 220 Housing in Urban Renewal Areas
     Provided that replacement cost could include an 
allowance for builder's and sponsor's profit and risk of 10 
percent of all of the allowable cost items except the land, in 
estimating replacement cost to determine the maximum amount of 
a mortgage which could be insured by FHA on Section 220 urban 
renewal housing.
     Made clear that increases in mortgage amounts 
permitted for high cost areas under Section 220 could apply to 
garden type apartments as well as elevator type projects.

Section 221 Housing for Displaced Persons
     Liberalized the Section 221 program for low-cost 
housing for families displaced by urban renewal or other 
governmental action, by increasing the dollar limits on the 
mortgages, increasing the loan-to- value limit from 95 percent 
of appraised value to 100 percent and changing the maximum 
maturity from 30 to 40 years.

Cost Certifications
     Clarified and expanded the requirements for cost 
certification to FHA with respect to multifamily housing.
FNMA
     Removed the $15,000 per dwelling unit limit on the 
amount of an FHA mortgage which could be purchased by FNMA with 
respect to FHA Title VIII military housing mortgages, and 
mortgages covering houses in Alaska, Guam, or Hawaii.
     Reduced the amount of FNMA common stock which 
sellers of mortgages to FNMA under its secondary market 
operations were required to buy from 3 percent of the unpaid 
principal of the mortgages sold to FNMA to 2 percent. FNMA was 
given authority to raise or lower the percentage except that it 
could not be less than 1 percent.
     Required FNMA purchase prices in its secondary 
market operations to be ``within the range of market prices'' 
rather than ``at the market price'' as previously provided.
     Required the price paid by FNMA for mortgages 
purchased under its special assistance operations to be not 
less than 99 (with adjustments for interest and comparable 
items) for a period of one year after the date of enactment of 
this Act.
     Gave FNMA new authority to make advance 
commitments to purchase mortgages under its secondary market 
operations. The commitments could be issued only at prices 
which were sufficient to facilitate advance planning of home 
construction, but which were sufficiently below the price then 
offered by FNMA for immediate purchase to prevent excessive 
sales to FNMA pursuant to the commitments.
     Made clear that the FNMA $5 million advance 
commitment limit per State for FHA Section 213 cooperative 
housing mortgages should operate as a revolving fund.

Urban Renewal
     Added provisions to Title I of the Housing Act of 
1949 (P.L. 81-171) to authorize the making of relocation 
payments to individuals, families, and business concerns 
displaced by an urban renewal project respecting which a 
contract for a Federal capital grant had been executed. They 
were to cover the reasonable and necessary moving expenses and 
any actual direct losses of property, except good will or 
profit, which were incurred on and after the enactment of this 
Act resulting from displacement by an urban renewal project. 
They could not exceed $100 in the case of an individual or 
family, or $2,000 in the case of a business concern. The 
capital grant for the urban renewal project was to be increased 
by the amount of the relocation payments so that no part of the 
relocation payments would be required to be contributed as part 
of the local grants-in-aid. Contracts for Federal capital 
grants which had been executed prior to enactment of the 1956 
Act could be amended to provide relocation payments incurred on 
or after that date.
     Authorized the Housing and Home Finance 
Administrator to make urban renewal planning advances to a 
single local public body acting on behalf of all the local 
public bodies having authority for surveys and plans for an 
urban renewal project.
     Authorized the Housing and Home Finance 
Administrator to make advances to local public agencies for the 
preparation of ``General Neighborhood Renewal Plans'' for urban 
renewal areas of such scope that urban renewal activities might 
have to be carried out in stages, over a period of not more 
than 10 years, rather than as a single project.
     Authorized the Housing Administrator to make 
advances to local public agencies for surveys of urban areas to 
determine whether the undertaking of urban renewal projects in 
the areas might be feasible.
     Simplified the definition of ``urban renewal 
project'' by consolidating the provisions relating to slum 
clearance and redevelopment with those relating to 
rehabilitation and conservation. The requirement that an urban 
redevelopment area (with certain exceptions) had to be either 
predominantly residential to begin with or else be redeveloped 
for predominantly residential uses was made applicable to the 
urban renewal area as a whole rather than only to those parts 
which were to be cleared and redeveloped, as was previously the 
case.
     Increased the limit on the aggregate amount of 
capital grant contracts which could be entered into without 
regard to the 10 percent limitation on the expenditure of funds 
in any one State from $70 million to $100 million in States 
where more than two- thirds of the maximum capital grants 
permitted had been obligated.
     Added provisions to the urban renewal law to make 
urban renewal assistance more quickly available in disaster 
areas.
     Provided that local grants-in-aid, together with 
the local grants-in-aid to be provided in connection with all 
other projects, should not be required in excess of one-third 
of the aggregate net project costs of all projects of the local 
public agency on which contracts for capital grants had been 
made.

Urban Planning
     Amended the urban planning law to permit Federal 
urban planning grants for a community affected by a major 
disaster without regard to the fact that the community's 
population was 25,000 or more.
Low-Rent Public Housing
     Authorized new contracts for loans and annual 
contributions for not more than 35,000 additional low-rent 
public housing units each year for two years. Any balance of 
the existing authorization which was not utilized by July 31, 
1956, was also made available.
     Provided that no new contract for public housing 
assistance could be entered into unless the locality had a 
workable program for the prevention and elimination of slums 
which had been approved by the Housing Administrator.
     Increased the limit on annual contributions and 
grant funds for public housing which could be made to any one 
State from 10 percent to 15 percent of the total amount of such 
contributions and grant funds.
     Made low-income elderly single persons (65 years 
of age or over) eligible for admission to low-rent public 
housing.
     Authorized assistance to the construction of new 
housing or the remodeling of existing low-rent public housing 
in order to provide accommodations designed specifically for 
the elderly.
     Allowed the elderly to be given first preference 
in admission to public housing suitable to their needs, and 
they were not required to come from substandard dwellings as in 
the case of other tenants admitted to public housing.
     Permitted the maximum cost per room for dwellings 
designed specifically for the elderly to be $500 more than the 
maximum permissible for other public housing.
     Directed the Public Housing Administration to 
transfer farm labor camps without monetary consideration to any 
local public housing agency whose area of operation included a 
farm labor camp, for use first by low-income agricultural 
workers and their families and, second, by other low-income 
persons and their families.

Disposition of Defense Housing
     Transferred certain defense housing projects from 
the Housing Agency to the Department of Defense. Housing 
constructed under the Defense Housing Act of 1951 (P.L. 82-139) 
which was not transferred was required to be disposed of not 
later than June 30, 1957.

Disposition of Permanent War Housing
     Added provisions to the Lanham Act designed to 
accelerate the disposition of permanent war housing.
FHA Title VIII Military Housing
     Continued this mortgage insurance program to June 
30, 1958, and increased the mortgage insurance authorization to 
$2,300,000,000.
     Increased the limit on monthly payments which the 
Secretary of Defense could make for the payment of principal, 
interest, and other obligations on Title VIII housing mortgages 
from $9 million to $21 million.

College Housing Loan Fund
     Increased the revolving loan fund for college 
housing and other educational facilities from $500 million to 
$750 million.

Research Program
     Directed the Housing Administrator to conduct a 
research program designed to develop and supply data and 
information on the housing inventory, mortgage market problems, 
the availability of low-income and middle-income housing, 
housing for elderly persons, residential design, assembly 
methods, and materials use, and characteristics of current and 
prospective housing market demand.

Loans by Federal Savings and Loan Associations
     Raised the limit on property alteration, repair or 
improvement loans made by Federal savings and loan associations 
from $2,500 to $3,500.
     Permitted the associations to increase from 15 to 
20 percent the proportion of their assets that could be loaned 
without regard to the $35,000 loan amount limit for any one 
property and without regard to the 50 mile area limit.

Hospital Construction
     Temporarily revised and extended to June 30, 1958 
the authority to make hospital construction loans or grants or 
other payments under the Defense Housing and Community 
Facilities Act of 1951 (P.L. 82-139), in cases where the loans, 
grants or payments were denied because of the unavailability of 
funds.

      Administrator's Organization Order No. 1, September 28, 1956

                (Redesignated No. 2 on December 7, 1956)

     Established the Federal Flood Indemnity 
Administration.
     (The Federal Flood Indemnity Administration 
suspended operations because Congress refused funds for 
starting its operations, June 30, 1957.)

                            FNMA Operations

                   (Public Law 85-10, March 10, 1957)

     Increased FNMA's authority to borrow for its 
secondary market operations.
     Increased its revolving fund for special 
assistance to FHA-insured cooperative housing mortgages.

              Proposed ``Insured Debenture Financing Act''

             (Committee Print, 85th Cong., March 29, 1957)

     The Subcommittee on Housing, House Committee on 
Banking and Currency, proposed the ``Insured Debenture 
Financing Act,'' to permit the development of a form of 
investment security ``better suited than a real estate mortgage 
to the needs of substantial sources of investment capital (such 
as pension trusts, college endowments, and similar funds) which 
in the past, have not placed any substantial portion of their 
assets in housing investments.''

                 Voluntary Home Mortgage Credit Program

                   (Public Law 85-66, June 29, 1957)

     Extended the Voluntary Home Mortgage Credit 
Program until August 15, 1957.

              RFC Public Agency Loans Transferred to HHFA

               (Reorganization Plan No. 1, July 1, 1957)

     Transferred to the Housing and Home Finance Agency 
the remaining functions of the RFC in connection with its 
portfolio of public agency loans.

                          Housing Act of 1957

                   (Public Law 85-104, July 12, 1957)

Amendments to FHA Insurance Programs
     Reduced downpayments required for purchase of FHA 
housing under its Section 203 mortgage insurance program to 
permit insurance of loans which did not exceed 97 percent of 
the first $10,000 of the appraised value of the property, plus 
85 percent of the value in excess of $10,000, but 70 percent of 
value in excess of $16,000.
     Provided that loans insured under Section 203 (i) 
covering housing in suburban and outlying areas could not 
exceed $8,000 and the downpayment could be 3 percent of the 
value of the property where the mortgagor was the owner-
occupant of the property.
     Amended the Section 220 urban renewal housing 
program to permit downpayments to be 3 percent of the first 
$10,000 of replacement costs of the property, plus 15 percent 
of the next $6,000, and 30 percent in excess of $16,000 (the 
same as Section 203(b) except the ratio was based on 
replacement cost rather than value).
     Amended the Section 222 mortgage insurance program 
for housing for servicemen in the same way as the Section 
203(b) program.

FHA Farm Housing Program
     Repealed the FHA Section 203(d) special farm 
housing mortgage insurance provision.

FHA Housing for the Elderly
     Raised the maximum amount of a mortgage financing 
elevator-type rental housing for the elderly to $8,400 per 
family unit where the mortgagor was a nonprofit organization.
     Amended Section 207 to make it clear that units 
could be designed for and occupied by single elderly persons.

Amendments to Federal National Mortgage Association
     Limited the amount of FNMA stock a mortgage seller 
had to purchase under FNMA's regular secondary market 
operations to 2 percent. (Previously there was no limit except 
that the stock purchase could not be less than 1 percent of the 
mortgage amount.)
     Increased the amount of FNMA preferred stock which 
could be held by the United States Treasury by $65 million, 
thereby increasing mortgage purchase authority.
     Increased the amount of FNMA obligations which 
could be purchased by the United States Treasury from $1.35 
billion to $2.25 billion.
     Required FNMA purchases of mortgages under its 
special assistance program to be at par, until August 8, 1958. 
(Previously FNMA was required to purchase at 99 or more.)
     Limited FNMA's fees and charges for special 
assistance purchases to 1 \1/2\ percent of the unpaid principal 
amount of a mortgage, not more than half to be collected at the 
time of the commitment to purchase.
     Increased authority available to FNMA under its 
special assistance functions to $450 million, at the discretion 
of the President.
     Increased the special assistance authority for FHA 
Section 213 cooperative housing from $100 million to $200 
million. $50 million of the total authorization was reserved 
for consumer cooperatives.
     Increased the special assistance authority for FHA 
Title VIII military housing from $200 million to $450 million 
and part of the authorization was made available for housing 
for essential civilians at military research and development 
centers.

Urban Renewal
     Increased the capital grant authorization for slum 
clearance and urban renewal by $530 million.
     Provided an alternative basis for calculating the 
Federal capital grants that could be paid to urban renewal 
projects. In place of the 2/3 Federal to 1/3 local grant 
formula for a project, the local public agency could choose a 
3/4 Federal to \1/4\ local grant formula, if the community 
bears all expenses of planning, surveys, legal services, and 
administrative costs.
     Increased the proportion of the urban renewal 
capital grant authorization that could be allocated within any 
one State from 10 to 12 \1/2\ percent.
     Authorized the Housing Administrator to permit 
local public agencies to make relocation payments in fixed 
amounts (up to $100) to individuals and families without the 
necessity of investigating the actual costs incurred in each 
case.
     Raised the limit on relocation payments to 
individual business concerns from $2,000 to $2,500.

Public Housing
     Changed the income limits for continued occupancy 
of public housing by permitting an exemption from the net 
income of the family to be allowed for minors (other than the 
head of the family and his spouse) of either $100, or all or 
part of the minor's annual income.
     Increased the cost limits per room of public 
housing from $1,750 to $2,000 for regular units, and from 
$2,250 to $2,500 per room for units for elderly persons.
     Enabled public housing to be built by either 
conventional or any of various prefabrication techniques.
     Required specifications for public housing to 
follow the principle of modular measure in every case deemed 
feasible by the local public housing agency.

College Housing
     Increased the college housing loan authorization 
by $175 million. Limited the specified amount for hospitals 
training nurses and interns to $25 million.

Farm Housing Research
     Directed the Housing Administrator to carry out a 
program for the study of farm housing in the United States. The 
study was to be conducted by land-grant colleges financed with 
grants made to them by the Administrator.
     Authorized grant authority of $300 million in each 
of FYs 1958 and 1959. (Authority expired June 30, 1959. $75,000 
was appropriated for FY 1958 (P.L. 85-170, August 28, 1957), 
without providing administrative expense authorization and 
program was not implemented by HHFA.)

FHA Mortgages
     Directed the Federal Housing Commissioner and the 
Veterans' Administrator to fix reasonable limits on the 
charges, fees, and discounts imposed upon the builder, seller, 
or purchaser, in connection with the financing of the 
construction or sale of housing covered by an FHA mortgage.

Urban Planning Grants
     Authorized the Housing Administrator to make 
matching urban planning grants to (1) official governmental 
planning agencies for areas threatened with rapid urbanization 
as a result of the establishment or rapid and substantial 
expansion of a Federal installation, and (2) State planning to 
be used for the provision of planning assistance to such areas.

Exchange of Data with Foreign Countries
     Directed the Housing Administrator to exchange 
data relating to housing and urban planning and development 
with other nations where the exchange is deemed by him to be 
beneficial to the programs of the Housing Agency.

                         Executive Order 10734

                           (October 17, 1957)

     Amended and clarified certain provisions of EO 
10657 (February 14, 1956) in which the functions of disposing 
of AEC communities were transferred to HHFA.

                       Expedition of Public Works

(Presidential Letter to the Housing Administrator and the Secretary of 
                      Agriculture, March 19, 1958)

    By letter, the President:
     Released $100 million of reserved balance for the 
public facility loan program and instructed that preference by 
given to loans for projects ready for immediate construction.
     Liberalized the public facility loan program by 
extending eligibility for loans to larger communities and by 
broadening the categories of public works eligible for loans.
     Instructed the Housing Administrator to expedite 
construction of college housing, structures on urban renewal 
sites, and low-rent public housing.

                       1958 Emergency Housing Act

                   (Public Law 85-364, April 1, 1958)

Stimulative Measures
     Reduced downpayments on FHA Sections 203 and 220 
sales housing.
     Increased by $500 million the FNMA special 
assistance fund for purchase of home mortgage which were not 
otherwise marketable, and for the purchase of mortgages 
generally as a means of aiding and maintaining the stability of 
a high-level national economy, and created a new FNMA special 
assistance revolving fund of $1 billion for the purchase of FHA 
and VA mortgages not exceeding $13,500 on new homes.
     Provided an additional $50 million for FNMA 
special assistance to FHA military housing and housing at 
research and development centers.
     Increased from 4 to 4 \1/2\ percent the interest 
rate ceiling on FHA Section 803 military housing mortgages.
     Repealed the requirement that FHA control 
discounts on FHA home loan mortgages.
     Strengthened the Voluntary Home Mortgage Credit 
Program to provide housing credit for veterans living in rural 
areas and small cities and towns. Authorized special 
commitments to builders or sponsors who would construct 
dwellings in areas determined by the Administrator to be 
``housing credit shortage areas,'' and to veterans purchasing 
homes in such areas.

                  FHA Mortgage Insurance Authorization

                   (Public Law 85-442, June 4, 1958)

     Increased FHA mortgage insurance authorization by 
$4 billion.

     Housing Stimulation Presidential Announcement, August 27, 1958

     Announced that in the absence of legislation 
authorizing further Federal assistance for urban renewal, 
college housing and other recommendations to stimulate housing 
construction with private capital, he was:
          a. Releasing $100 million for urban renewal.
          b. Directing that available public facility loan 
        funds be channeled to smaller applicants without 
        established credit in private markets.

                      Housing Act of 1959--Vetoed

                (S. 86-57; S. Doc. 86-34, July 7, 1959)

     Congress passed S. 57, the Housing Act of 1959 an 
omnibus bill which, among other things, would have extended and 
increased authorizations for FHA insurance, urban renewal, FNMA 
special assistance, public housing and college housing. The 
bill would also have authorized new programs of direct loan 
assistance for housing for the elderly, and for the 
construction of college classrooms, laboratories and similar 
facilities.
     The President returned the bill to the Senate 
without his approval, on five grounds, namely that the bill:
          1. Was extravagant, citing especially the amounts 
        proposed for urban renewal, public housing and college 
        classroom loans.
          2. Was inflationary.
          3. Would tend to substitute Federal spending for 
        private credit, citing especially the requirement that 
        FNMA purchase mortgages at par under its special 
        assistance program.
          4. Would needlessly limit FHA, and might impair the 
        soundness of its insurance programs.
          5. Was discriminatory and unfair, especially in 
        connection with certain non-cash grant-in-aid credits 
        proposed to be allowed in the urban renewal program.

                      Housing Act of 1959--Vetoed

             (S. 86-2539, H. Doc. 86-52, September 4, 1959)

     Congress passed S. 2539, the Housing Act of 1959. 
The bill was substantially similar to S. 57 (see above), but 
contained numerous deletions and modifications, said to be 
responsive to the objections of the President in his veto 
message on the previous bill, as well as certain additions.
     The President returned the bill to the Senate 
without approval. His message again stressed his view that the 
bill contemplated excessive expenditures, and renewed his 
objections to the provisions relating to public housing and to 
loans for housing for the elderly and for college classrooms 
and related facilities.

                          Housing Act of 1959

                (Public Law 86-372, September 23, 1959)

Amendments to FHA
     Increased the general mortgage insurance 
authorization of FHA by $8 billion.
     Increased the statutory limits on interest rates 
on FHA insured mortgage:
          (i) from 4 \1/2\ percent to 5 \1/4\ percent on 
        Section 207 rental housing mortgages and management-
        type cooperative housing mortgages, and
          (ii) from 5 percent to 5 3/4 percent for sales-type 
        cooperative housing mortgages.
     Raised the dollar limits and loan to value 
(replacement cost under Section 220) limits on FHA Section 203 
and 220 sales housing mortgages, resulting in a decrease in 
downpayments for houses valued over $13,500.
     To facilitate trade-in financing by avoiding 
duplicate closing costs, permitted the maximum insured mortgage 
loan for a non occupant owner to be as high as that for an 
occupant owner, but the non occupant owner was required to 
place 15 percent of the mortgage proceeds in escrow pending the 
sale of the property to an occupant owner within 18 months.
     Changed the FHA Section 203(i) mortgage insurance 
program for low-cost housing in outlying areas by increasing 
the dollar limit on the amount of a mortgage from $8,000 to 
$9,000, by making existing housing eligible for insurance under 
the program, by permitting FHA to accept VA construction 
inspections, and by removing a separate insurance ceiling on 
certain farm housing.
     Raised the dollar limit on a Section 207 rental 
housing mortgage from $12,500,000 to $20 million and also 
increased the per-room and per-unit limits.
     Increased the $1,000 per space, $300,000 mortgage 
limits for trailer courts to $1,500 and $500,000, respectively.
     Increased the limits on the amounts of FHA 
management-type cooperative housing mortgages and made existing 
housing purchased by a management-type cooperative eligible for 
FHA cooperative housing mortgage insurance.
     Permitted the mortgage of an investor building for 
sale to a management type cooperative to include commercial and 
community facilities adequate to serve the project. (Previously 
this was permitted for management-type cooperatives only.)
     Permitted FHA-insured mortgages for sales-type 
cooperatives to include community facilities adequate to serve 
the housing.
     Authorized FHA to extend the time for curing a 
mortgage default covering a one- to four-family residence and 
to protect the lender against any interest losses resulting 
from the extension. In order to avoid foreclosure, authorized 
FHA to acquire a defaulted mortgage on a one- to four-family 
residence and to issue to the mortgagee debentures in an amount 
necessary to protect the mortgagee against loss.
     Raised the FHA Section 222 mortgage limits on 
housing for servicemen from $17,100 to $20,000, except, where a 
home met the standards of the Section 203(i) program for homes 
in outlying areas, the Section 203(i) $9,000 limit applied.
     Made the increases in FHA mortgage limits 
available for housing in Alaska, Guam, and Hawaii.
     Authorized the termination of home mortgage 
insurance where there was mutual agreement between the 
mortgagee and mortgagor without the necessity, as previously 
required, of paying off the mortgage, thus avoiding refinancing 
expenses.
     Repealed a separate insurance authorization 
ceiling for FHA's yield insurance program.

FHA Armed Services Housing
     Continued the FHA Title VIII military housing 
program until October 1, 1961, and raised the maximum term of a 
mortgage from 25 to 30 years. Permitted the mortgage to cover 
the cost of non dwelling facilities.
     Authorized a new Section 810 program to provide up 
to 5,000 units of housing for military and essential civilian 
personnel, including those at AEC and NASA installations. If 
FHA determined the housing was not an acceptable risk it could 
require the Secretary of Defense to guarantee the FHA insurance 
fund against loss.
     Authorized the Secretary of Defense to acquire FHA 
Section 207 rental housing completed before July 1, 1952, which 
was situated adjacent to a military installation and which was 
certified as necessary military housing prior to construction.

FHA Section 220 and Section 221 Mortgage Insurance
     Raised limits on FHA Section 220 urban renewal 
housing mortgages consistent with the changes in the Section 
203 and 207 regular mortgage insurance programs made by the 
law. The trade-in provision was also made applicable to the 
Section 220 housing.
     Encouraged exterior land improvements for rental 
housing projects in urban renewal areas by permitting them to 
be included in the Section 220 mortgage without being computed 
as part of the per-room or per- unit cost limits.
     Permitted to be included in a Section 220 mortgage 
were such non dwelling facilities as the FHA deemed adequate to 
serve the project occupants and other housing in the 
neighborhood.
     Made the Section 221 mortgage insurance program 
available to families displaced from within the environs of a 
community that has ``a workable program'' for the prevention 
and elimination of slums.
     Increased the limit on the amount of a Section 221 
mortgage covering a single-family home in a high-cost area from 
$10,000 to $12,000.
     Made two-, three-, and four-family structures 
eligible for Section 221 sales housing mortgage insurance where 
the owner agreed to rent the additional units to families 
displaced by urban renewal or other governmental activities. 
The minimum downpayment for owner-occupants was $200 per family 
dwelling. For non occupant owners, the amount of the mortgage 
was limited to 85 percent of value.
     Made profit-motivated corporations eligible for 
FHA Section 221 rental housing mortgages. The mortgage could 
not exceed $12,500,000 nor 90 percent of replacement cost in 
the case of new construction and 90 percent of value after 
repair and rehabilitation were completed in the case of 
rehabilitated housing.

Housing for the Elderly
  Insurance
     Enacted a new Section 231 FHA mortgage insurance 
program for both nonprofit and profit-making rental housing for 
the elderly. The property could include such commercial and 
special facilities as FHA deemed adequate.
     Limited the amount of a mortgage to $12,500,000, 
except that it could be up to $50 million where the mortgagor 
was a public instrumentality or nonprofit organization subject 
to certain governmental controls. In the case of a public or 
nonprofit mortgagor the mortgage was limited also to 100 
percent of the estimated replacement cost if the construction 
was new and 100 percent of estimated value if the structures 
were being rehabilitated. In the case of the a profit-motivated 
mortgagor it was 90 percent.

  Section 202 Direct Loans
     Authorized the Housing Administrator to make 
direct Federal loans for rental housing for the elderly to 
private nonprofit corporations. The property could be new or 
rehabilitated rental housing structures and could include 
dining halls, community rooms, infirmaries, and other essential 
service facilities.
     Limited a loan to not more than 98 percent of the 
total development cost and limited the interest rate to the 
higher of (i) 2 3/4 percent or (ii) a rate derived by adding 
\1/4\ of one percent to the average annual interest rate on all 
interest bearing obligations forming a part of the Federal 
debt.
     Limited the term of a loan to not more than 50 
years.
     Authorized up to $50 million to be appropriated to 
a revolving fund for the program. Not more than $5 million of 
the fund could be outstanding at any one time for ``related 
facilities.''

FHA Nursing Homes
     Authorized a new program of FHA mortgage insurance 
for privately-owned nursing homes. The property could be new or 
rehabilitated.
     Limited the amount of a mortgage to $12,500,000 
and 75 percent of estimated value.
     Limited the maximum interest rate to 5 percent, or 
6 percent if found necessary to meet the mortgage market.

Low-Rent Public Housing
     Authorized contracts for an additional 37,000 
units of low-rent public housing.
     Eliminated the statutory ceilings on family income 
for both admission and continued occupancy of low-rent public 
housing.
     Authorized the local housing agency, with Public 
Housing Administration approval, to establish income limits and 
rent limits.

Federal National Mortgage Association
     Authorized an additional $25 million for special 
assistance by FNMA for FHA cooperative housing mortgages. Half 
of the increase was for consumer cooperative mortgages, and 
half for builder-sponsor cooperatives.
     Removed previous limits on the amounts of fees and 
charges FNMA could impose under its special assistance program.
     Raised the limit on the amount of a mortgage which 
could be purchased by FNMA from $15,000 (for each dwelling unit 
covered by the mortgage) to $20,000 if purchased in its 
secondary market operations, and from $15,000 to $17,500 if 
purchased in its special assistance program; FHA Section 220 
urban renewal housing was excepted from the dollar limits.
     Permitted advance commitments by FNMA to purchase 
mortgages in its secondary market operations with respect to 
mortgages covering existing housing in addition to new housing.
     Authorized FNMA to invest in obligations which 
were lawful investments for fiduciary, trust, or public funds. 
(Previously it was restricted to government obligations and 
government-guaranteed obligations.)
     Directed FNMA to renew any special assistance 
commitment issued prior to August 27, 1958, if it was 
established that hardship would otherwise occur and that 
failure to deliver the mortgage on time was beyond control of 
the mortgage seller.

Urban Renewal
     Increased the urban renewal capital grant 
authorization by $350 million, and by an additional $300 
million to be available on July 1, 1960.
     Increased the amount of the urban renewal grant 
authorization available for nonresidential redevelopment 
projects from 10 percent to 20 percent effective the date of 
approval of the law.
     Removed the 12 \1/2\ percent ceiling on the 
proportion of loan funds for urban renewal which could be 
expended in any one State.
     Authorized the President to permit Treasury 
borrowing in excess of $1 billion, as a back-up for private 
financing where the loan contract was pledged as a security. 
(This reflected the fact that most of the amounts contracted to 
be loaned was not disbursed. Instead, the contract was used by 
the local public agency as ``back-up'' to borrow private funds. 
Accordingly, the $1 billion on borrowings from the Treasury was 
removed, as such, and made applicable only to loans actually 
disbursed, or committed and estimated to be disbursed.)
     Authorized eligible local public improvements 
started by the locality within three years prior to the signing 
of a loan and grant contract for urban renewal to be credited 
as noncash grants-in-aid to the urban renewal project.
     Authorized temporary Federal loans for land 
acquisition and slum clearance in an urban renewal area prior 
to or after the approval of the urban renewal plan by the local 
governing body, if that body approved the acquisition and 
clearance.
     Directed the Housing Administrator to encourage 
the utilization of local public agencies established to operate 
on a Statewide basis in behalf of smaller communities within 
the State which were undertaking urban renewal programs.
     Authorized Federal assistance to an urban renewal 
project without regard to the predominantly residential 
requirement where an institution of higher learning was located 
in or near a project and the local governing body determined 
that the project would assist the institution and further 
promote the public welfare and proper development of the 
community. Expenditures made by the institution in purchasing 
and clearing property within, adjacent to, or in the immediate 
vicinity of the project could be counted as a local grant-in-
aid.
     Permitted land in an urban renewal project to be 
made available for public housing (whether Federally or State 
or locally assisted) at a price equal to the fair value of land 
to a private redeveloper who wanted to buy a site in the 
community for private rental housing similar in physical 
characteristics to the proposed low-rent housing project.
     Authorized national and State member banks of the 
Federal Reserve System to underwrite long-term urban renewal 
obligations of local public agencies if such obligations were 
secured by a prescribed agreement with the Housing 
Administrator. (Previously, the banks could underwrite only 
urban renewal obligations having a short term.)

Community Renewal Programs
     Authorized the Housing Administrator to contract 
to make grants up to 2/3 of cost for the preparation or 
completion of community renewal programs which would include 
identification of slum or blighted areas in the community, 
measurement of blight, determination of resources needed and 
available to renew such areas, identification of potential 
project areas and types of action contemplated, and scheduling 
of urban renewal activities.
     Relocation Payments
     Authorized urban renewal relocation payments when 
the displacement from the urban renewal area was a result of 
any governmental activity in the area, code enforcement, or 
programs of voluntary repair and rehabilitation. (Previously 
relocation payments were available only where displacement 
resulted from an urban renewal project.)
     Increased the maximum relocation payments from 
$100 to $200 when made to individuals and families, and from 
$2,500 to $3,000 when made to business concerns.

Urban Planning
     Authorized an additional $10 million for Federal 
matching grants to assist State and urban planning.
     Broadened the scope of the urban planning grant 
program by authorizing Federal matching grants to agencies and 
communities not previously eligible and by authorizing grants 
directly to any city and county which had suffered a major 
disaster. Under new provisions the grants could be used for 
metropolitan or regional planning under interstate compacts.
     Authorized the Housing Administrator to encourage 
planning on a unified metropolitan basis and to provide 
technical assistance for such planning and the solution of 
problems relating to such planning.

College Housing
     Increased the college housing loan revolving fund 
by $250 million; $25 million was made available for ``other 
educational facilities'' such as dining halls and student 
centers; and $25 million was available for student-nurse and 
intern housing facilities.
     Made nonprofit student housing cooperatives 
eligible for college housing loans. The note securing the loan 
was required to be co-signed by the educational institution at 
which the cooperative was located.

Public Works Planning
     Authorized the Housing Administrator to use during 
any fiscal year up to $50,000 of the revolving fund from which 
advances were made to localities for advance planning of public 
works, to conduct surveys of the status and current volume of 
State and local public works planning and surveys of estimated 
requirements for State and local public works.
Real Estate Loans by National Banks
     Excepted FHA Section 203 sales housing loans from 
calculating the amount of real estate loans which a national 
bank may make in relation to its capital and surplus or its 
time and savings deposits.

Farm Housing Research
     Continued the authority of the Housing 
Administrator (in the Housing Act of 1957, P.L. 85-104) to make 
grants to land grant colleges for farm housing research, until 
June 30, 1961.
     Limited grants to $100,000 during the two-year 
period beginning July 1, 1959.

Savings and Loan Associations
     Authorized a Federal savings and loan association 
to use up to 20 percent of its assets to make or purchase 
participating interests in first mortgages on one- to four-
family homes without regard to the area restriction.
     Limited the aggregate sums invested in the 
participations plus all outstanding loans and participations 
which the association had made under the previous exception 
from the area restrictions to not more than 30 percent of its 
assets.
     Excluded the amount of participations in FHA or VA 
loans in determining the amount of loans which a Federal 
savings and loan association might make within any of the 
percentage limits in the Home Owners' Loan Act.
     Authorized a Federal savings and loan association 
to invest up to 5 percent of its withdrawable accounts in loans 
to finance the acquisition and development of land for 
primarily residential use if its general reserves, surplus, and 
undivided profits aggregated a sum in excess of 5 percent of 
its withdrawable accounts.

              V. THE 1960s--ECONOMIC AND POPULATION GROWTH

                           Amendments to FHA

                (Public Law 86-788, September 14, 1960)

     Removed the dollar limitation on the amount of 
loans insured in the FHA Title I home repair and improvement 
loan insurance program.
     Increased the college housing and public facility 
loan authorizations.

 Report of the President's Commission on National Goals, November 16, 
                                  1960

Recommendations:
     A full range of housing opportunities outside the 
central cities for minority families and for other low-income 
families.
     An adequate supply of suitable housing for low- 
and middle-income families who need or want to live in central 
areas.
     A greater volume of investment, private and 
public, in renewal and redevelopment.
     Effective regional planning and stronger land use 
controls.
     Incentives for effective planning, land-use 
control, and strong local government, in all Federal and State 
programs of financial assistance.
     Responsible programming of local housing 
requirements.
     Expansion of the market for new and improved 
housing and of the range of consumer housing choices.

                  Presidential State of Union Message

                   (H. Doc. 87-73, January 30, 1961)

     Stated a new housing program under a new 
Department of Housing and Urban Affairs was needed.

                Stimulation of the Provision of Housing.

  (Presidential Message to Congress. H. Doc. 87-81, February 2, 1961)

     Reported Presidential actions designed to expand 
long-term credit to stimulate residential construction and 
public works program by:
     Ordering a reduction in interest rates on FHA-
insured loans and on new loans under the public facility loan 
program.
     A temporary reduction of 50 percent in the FNMA 
stock subscription requirement applicable to mortgage sales in 
the secondary market.
     Expansion of the public facility loan program.
     Acceleration of the programs of low-rent public 
housing, urban renewal, and college housing.

                          Presidential Actions

                   (H. Doc. 87-94, February 23, 1961)

     Requested all Federal agencies concerned to 
provide data on flood hazards in specified areas, and to assist 
States in their efforts for effective regulation and zoning of 
the flood plains.
     Directed the Housing Agency and other Federal 
agencies concerned with urban development to coordinate their 
activities with flood control agencies in order to utilize 
flood information to advantage.

                   Urban Renewal and Highway Planning

  (Presidential Message to Congress. H. Doc. 87-96, February 28, 1961)

     Reported directing the Housing and Home Finance 
Administrator and the Secretary of Commerce to increase their 
joint planning activities to improve coordination of urban 
renewal and freeway construction plans in the same area, and to 
invite the cooperative efforts of State and local highway and 
housing officials and private experts.
     Recommended amendments to the Federal Aid Highway 
Act to assist families displaced by future highway projects to 
relocate in suitable housing at reasonable costs.

                      Presidential Housing Message

                    (H. Doc. 87-102, March 9, 1961)

     Listed three basic national objectives:
          a. to renew cities and assure sound growth of rapidly 
        expanding metropolitan areas;
          b. to provide decent housing for all Americans; and
          c. to encourage a prosperous and efficient 
        construction industry as an essential component of 
        general economic prosperity and growth.
     Recommended establishment of a new Department of 
Housing and Urban Affairs.
     Recommended broadening and extending existing 
housing, community development, and urban renewal programs; and 
new programs:
          a. to enable private enterprise to provide housing 
        for moderate income families;
          b. to enable the owners of deteriorated homes to 
        repair and improve them with FHA insurance loans; and
          c. to acquire open land to be used for park and 
        recreational purposes and for future public or private 
        development.
     Directed an extensive study of urban 
transportation problems by the Housing Administrator and the 
Secretary of Commerce.

        Department of Urban Affairs and Housing, April 18, 1961

     The President transmitted a draft bill to Congress 
which would establish a Department of Urban Affairs and 
Housing.

                         Area Redevelopment Act

                    (Public Law 87-27, May 1, 1961)

     Provided loans and grants for public facilities 
and for commercial and industrial facilities in ``redevelopment 
areas'' of substantial and persistent unemployment or 
underemployment.
     Authorized a $300 million revolving loan fund to 
be established through Treasury borrowings, with one-third to 
be made available for public facility loans, one-third for 
commercial and industrial loans in industrial redevelopment 
areas, and one-third for such loans in rural redevelopment 
areas. $75 million in grants for public facilities were also 
authorized.
     Waived the ``predominantly residential'' 
requirement of the urban renewal law in the case of projects in 
redevelopment areas.
     Permitted land in such projects to be sold to a 
public body or nonprofit corporation for subsequent disposition 
to a redeveloper rather than for direct redevelopment. Up to 10 
percent of a all new urban renewal grant authorizations could 
be used in connection with these provisions.
     Made urban planning grants available in industrial 
redevelopment areas either directly or through State planning 
agencies, and for up to three-fourths (rather than two-thirds) 
of the cost of the planning.

                           Amendments to FHA

                    (Public Law 87-38, May 25, 1961)

     Made an interim increase of $1 billion in FHA's 
mortgage insurance authorization.

                          Housing Act of 1961

                   (Public Law 87-70, June 30, 1961)

FHA Sec. 221 Mortgage Insurance
     Made the FHA Section 221 mortgage insurance 
program for displaced families available on more liberal terms 
and broadened it to apply to low- and moderate- income families 
generally.
     Repealed the requirement that a community must 
have a ``workable program'' for the prevention and elimination 
of slums as a prerequisite for Section 221 housing, except for 
limited or nonprofit or cooperative housing financed under the 
Section 221(d)(3) program. (The authority to insure mortgages 
for moderate-income families terminated July 1, 1963, but there 
was no termination date on the authority for displaced 
persons.)
     Amended the existing Section 221 rental housing 
program to liberalize its terms and make it available for low- 
and moderate-income families as well as displaced families. 
(The rental housing program for moderate-income families 
terminated July 1, 1965.)
     Amended Section 221(d)(3) to authorize insurance 
of rental housing mortgages bearing interest at a ``below 
market rate'' with a partial or no insurance premium and 
liberalized provisions for payment of insurance claims. 
Mortgagors could be nonprofit organizations, limited dividend 
corporations, cooperatives, and public bodies or agencies which 
certified that they were not receiving financial assistance 
from the U.S. exclusively for public housing. The interest rate 
could be not less than the annual rate of interest based on the 
average market yield on all outstanding marketable obligations.
     Authorized FNMA to purchase Section 221(d)(3) 
mortgages under its special assistance program notwithstanding 
the fact the mortgagors were public bodies or agencies or any 
other requirements in their charter act that might prevent the 
purchases.

Other FHA Insurance Programs
     Authorized a new program of FHA insured home 
improvement loans for dwellings in urban renewal areas (220(h)) 
and for one- to four-family dwellings not restricted to urban 
renewal areas (203(k)). Loans could be up to $10,000 per 
dwelling unit, or the cost of repairs, whichever was lesser. 
The maturity could be up to 20 years, or three-quarters of the 
remaining economic life of the property, whichever was lesser.
     Authorized purchase of these insured loans (with 
or without mortgage security) by FNMA.
     Authorized FHA to insure mortgages on homes or 
rental housing incorporating new and untried materials, design, 
and construction methods and involving experimental property 
standards and neighborhood design. Mortgages and property were 
to be eligible for insurance where the project was an 
``acceptable risk'' rather than being found economically sound.
     Authorized FHA in Section 234 to insure a mortgage 
to finance the purchase of a family unit in a multifamily 
structure and an undivided interest in the common areas and 
facilities which serve the structure (condominiums). The 
program was restricted to structures that were or had been 
covered by FHA-insured mortgages, other than cooperative 
housing mortgages. The structures could be new, existing or 
rehabilitated.
     Reduced downpayments under the Sections 203 and 
220 sales housing programs and raised maximum terms from 30 to 
35 years for new construction.
     Raised the limit on the amount of a nursing home 
mortgage from 75 percent of value to 90 percent.
     Increased the per-space limit on the amount of a 
mortgage covering a trailer park from $1,500 to $1,800.
     Authorized FHA to insure supplementary loans made 
with respect to a management- type cooperative for improvements 
or repairs, or necessary community facilities.
     Increased the limit on the amount of a mortgage 
covering elderly family housing (Section 231) where the number 
of rooms in the unit was four or more.
     Removed the requirement that the Secretary of 
Defense guarantee the FHA insurance fund against losses on 
Section 810 mortgages on housing in defense-impacted areas.
     Gave the FHA discretionary authority to provide 
for cash payment of insurance claims, rather than payment in 
debentures, in specified programs.
Housing for the Elderly
     Increased the loan authorization for housing for 
the elderly from $50 million to $125 million.
     Made consumer cooperatives and public bodies which 
certified they were not receiving Federal financial assistance 
exclusively for public housing eligible borrowers.
     Increased the maximum loan amount from 98 percent 
to 100 percent of the development cost.
     Repealed a $5 million limitation on ``related 
facilities.''

Public Housing
     Made available the remaining balance of the $336 
million annual contributions authorization in the 1949 Act 
(covering approximately 100,000 units).
     Limited contracts for any one State, after 
enactment of the Act, to not more than 15 percent of the amount 
of authorized contributions not under contract on that date.
     Authorized, but did not guarantee, additional 
Federal payments of up to $120 a year per unit, if required to 
maintain the solvency of a low- rent project.
     Permitted an over-income family to continue 
occupancy during the period the local housing agency determined 
that the family was unable to find decent private housing 
within its financial reach, if the family paid a rental related 
to its income.
     Repealed the requirement of repayment of 
subsidies, when the bonds outstanding on a project were paid 
off.
     Increased the cost ceiling per unit by $500 for 
units used by the elderly and for units in Alaska.
     Authorized the Federal Government to give an 
incontestable obligation to the holder of local housing 
authority obligations when backed by a financial contract under 
the public housing law.

Demonstration Program for Low-Income Housing
     Authorized the Housing Administrator to enter into 
contracts to make grants, up to $5 million, to public or 
private bodies for developing and demonstrating new or improved 
means of providing housing for low-income persons and families.

Amendments to Federal National Mortgage Association
     Increased the FNMA special assistance 
authorization by $750 million.
     Authorized FNMA to make loans, with maturities up 
to one year, on the security of FHA or VA mortgages. The loans 
could not exceed 80 percent of the unpaid balance of the 
mortgages securing them.
     Required borrowers to make nonrefundable capital 
contributions up to \1/2\ of 1 percent of the loan.

Urban Renewal
     Increased the urban renewal grant authorization by 
$2 billion, except that $25 million of this amount was to be 
used for contracts for mass transportation demonstration 
projects.
     Increased the amount of the authorization 
available for nonresidential projects from 20 percent to 30 
percent of the amount of grants authorized to be contracted for 
after the Housing Act of 1959 (P.L. 86-372).
     Increased the Federal contribution from 2/3 to 3/4 
for any municipality having a population of 50,000 or less, or 
150,000 or less for a municipality in an economically 
distressed area.
     Gave credit to cities for expenditures for land 
acquisition and clearance by hospitals near urban renewal 
areas, in the same manner as such credit had been given for 
similar expenditures by colleges. Increased to seven years the 
period prior to the loan and grant contract during which these 
expenditures could be counted.
     Permitted real property in an urban renewal area 
to be made available to (1) a limited dividend corporation, 
nonprofit corporation, cooperative, public body, or (2) any 
purchaser who was eligible for a Section 221 FHA-insured 
mortgage for a profit- making rental housing project for 
moderate-income families.
     Authorized local public agencies to carry out 
rehabilitation demonstrations in certain urban renewal areas.
     Authorized Small Business Administration loans on 
special terms for displaced business firms. Made available a 
special fund of $25 million.
     Authorized the Federal Government to give an 
incontestable obligation to the holder of local public agency 
obligations backed by Federal contract.
     Authorized a local public agency to pool its 
surplus local grant-in-aid credit between projects on the 2/3 
basis and projects on a 3/4 basis.

Urban Planning
     Increased the authorization for appropriation for 
urban planning grants from $20 million to $75 million.
     Increased the Federal share of the cost of urban 
planning from one-half to two-thirds.
     Authorized the Housing Administrator to provide 
technical assistance to State and local governments and their 
agencies undertaking planning, and to make studies on related 
problems.

Public Facility Loans
     Increased the aggregate revolving loan 
authorization by $500 million (to $650 million) of which not 
more than $50 million would be available only for loans for 
mass transportation facilities.
     Eliminated States as eligible borrowers for public 
facility loans (thus limiting eligibility to municipalities and 
other political subdivisions and instrumentalities of States).
     Also limited eligibility to communities having a 
population of less than 50,000, or, if located in an 
economically depressed areas, less than 150,000.
     Set the interest rate charged by the Housing 
Administrator to public facility loan borrowers at a rate based 
on the average annual interest rate on all interest bearing 
obligations of the United States plus one-half percent. 
(Previously the rate had been set by the Administrator.)
     Gave the Housing Administrator discretionary 
authority to postpone the payment of interest on not more than 
50 percent of any public facility loan for a period up to 10 
years under specified conditions. The postponed payments were 
to be payable with interest during the remaining life of the 
loan.
     Authorized the Housing Administrator to provide 
technical services to communities in budgeting, financing, 
planning, and constructing community facilities.

Urban Mass Transportation
     Made comprehensive planning for mass 
transportation eligible for urban planning grants.
     Authorized $25 million in grants to come from 
urban renewal grant funds to local public agencies for 
demonstration projects designed to contribute to the 
improvement of mass transportation or the reduction of mass 
transportation needs. The grant could not exceed 2/3 of the 
project costs and could not be used for major capital 
improvements.
     Authorized loans aggregating $50 million from 
Public Facility Loan (PFL) funds to be made to public bodies to 
provide for financing the acquisition, construction, and 
improvement of transportation facilities and equipment, until 
December 31, 1962.

Title VII--Open-Space Land
     Authorized up to $50 million for a new program of 
Federal grants, to assist local public bodies in the 
acquisition of land to be used as permanent open space. The 
amount of a grant could not normally exceed 20 percent of the 
total cost of acquiring the title to, or other permanent 
interest in, the land. The grant could be as high as 30 percent 
if it was extended to a public body which exercised 
responsibilities relating to open land for an urban area as a 
whole or which participated in the exercise of such 
responsibilities for all or a substantial part of an urban area 
pursuant to an interstate or other inter-governmental compact 
or agreement.
     Provided that no grant could be made unless the 
open-space land was important to the execution of a 
comprehensive plan for the urban area and unless a program of 
comprehensive planning was being actively carried on for the 
area.
    (Authority to enter into contracts under Title VII was 
repealed, effective January 1, 1975, by the Housing and 
Community Development Act of 1974, P.L. 93-383, August 22, 
1974.)

College Housing Loans
     Increased the aggregate revolving authorization 
for college housing loans by $300 million on July 1 of each of 
the four years from 1961 through 1964.
     Increased the sublimitation for such other 
facilities as dining halls and student unions by $30 million 
for each of the years, and the sublimitation for student nurses 
and medical residents and interns housing by $30 million for 
each of the years.

Public Works Planning
     Increased the authorization for Federal advances 
for the planning of specific non-Federal public works by $10 
million, bringing the total authorization for appropriations to 
$58 million.
Farm Housing
     Authorized housing loans to owners of nonfarm 
building sites in rural areas (defined by regulation as open 
country and rural towns of not more than 2,500 population).
     Authorized $250,000 each year for four years for 
the Secretary of Agriculture to conduct farm housing research.
National Banks
     Authorized national banks to make home improvement 
loans insured by FHA under its new home improvement loan 
program without regard to the loans not being secured by first 
liens.

                Department of Urban Affairs and Housing

                           (January 24, 1962)

     The House Rules Committee denied a rule for 
consideration by the House of a bill which would have 
established a Department of Urban Affairs and Housing.

                       Reorganization Plan No. 1

                   (H. Doc. 87-320, January 30, 1962)

     Proposed to create a Department of Urban Affairs 
and Housing. (The House of Representatives agreed to a 
resolution disapproving Reorganization Plan No. 1. H. Res. 87-
530, February 21, 1962.)

                          Consumer Protection

        (Presidential Message (H. Doc. 87-364, March 15, 1962))

     Recommended among other things, legislation 
requiring lenders to disclose to borrowers in advance the 
actual amounts and rates they pay for credit.

                     Public Works Acceleration Act

                (Public Law 87-658, September 14, 1962)

     Authorized a $900 million program of Federal 
assistance by the President to public works for those areas 
which were designated as ``redevelopment areas'' under the Area 
Redevelopment Act.
     Provided that funds advanced to such areas under 
the Public Works Planning Advance Program need not be repaid, 
and that loans under the Public Facility Loan Program could be 
made without regard to size-of-locality restrictions otherwise 
applicable.

                  Senior Citizens Housing Act of 1962

                (Public Law 87-723, September 28, 1962)

     Increased the authorization for direct loans by 
the Housing and Home Finance Administrator for rental housing 
and related facilities for the elderly by $100 million.
     Limited loans by the Administrator to new 
construction.
     Amended Title V of the Housing Act of 1949:
          (i) to include loans to buy previously occupied 
        dwellings and minimum adequate building sites;
          (ii) to authorize direct and insured loans by the 
        Secretary of Agriculture for housing for elderly in 
        rural areas and related facilities, and
          (iii) to increase the limit on grants for rural 
        housing repair from $500 to $1,000.

                   Amendment to National Housing Act

                  (Public Law 87-756, October 2, 1962)

     Authorized FHA Commissioner to make payments in 
lieu of taxes with respect to properties acquired by him under 
Section 803.

                 Federal Savings and Loan Associations

                  (Public Law 87-779, October 9, 1962)

     Permitted the Federal Home Loan Bank Board to 
authorize Federal savings and loan associations to invest up to 
an additional 15 percent of their assets in loans on 
multifamily housing. The loan limits could not exceed those 
permitted by FHA on multifamily housing.

                      Equal Opportunity in Housing

               (Executive Order 11063, November 20, 1962)

     Directed Federal departments and agencies to take 
action to prevent discrimination in the sale, lease, or 
occupancy of residential property owned or operated by the 
Federal Government, or the provision of which is assisted by 
the Federal Government through loans, grants, loans insured or 
guaranteed, or Federal assistance to slum clearance or urban 
renewal projects.
     Established the President's Committee on Equal 
Opportunity in Housing to promote the coordination of Federal 
activities under the Order.

   Report of Committee on Federal Credit Programs, February 11, 1963

     Sent by the President to agency heads 
administering Federal credit programs.
     Suggested that all departments and agencies 
administering loans, loan guarantee and insurance programs be 
guided by a set of principles detailed in the Report. These 
principles related mainly to various means of giving priority 
to the use of private rather than Federal credit.

                          Presidential Message

                   (H. Doc. 88-72, February 21, 1963)

Requested for Housing for the Elderly:
          a. Additional appropriations for direct Federal loans 
        for rental housing for the elderly;
          b. That the Housing Agency give greater emphasis to 
        the construction of group residences suitable for older 
        families and individuals who need housekeeping 
        assistance, central food service, and minor nursing 
        care; and
          c. Legislation that would make elderly individuals 
        eligible for FHA Section 221 housing for low- and 
        moderate-income families.
     Instructed the President's Council on Aging to 
study problems of modernization and rehabilitation of homes of 
the elderly.

                          Presidential Message

                    (H. Doc. 88-124, June 19, 1963)

     Transmitted draft legislation:
          a. To enforce the constitutional right to vote;
          b. To confer jurisdiction upon the District Courts of 
        the U.S. to provide injunctive relief against 
        discrimination in public accommodations;
          c. To authorize the Attorney General to institute 
        suits to protect constitutional rights in education;
          d. To establish a community relations service;
          e. To extend for four years the Commission on Civil 
        Rights;
          f. To prevent discrimination in Federally-assisted 
        programs; and
          g. To establish a Commission on Equal Employment 
        Opportunity.

                              Civil Rights

                 (Executive Order 11114, June 23, 1963)

     Extended the existing program for 
nondiscrimination in government contracts established by E.O. 
10925 of March 6, 1961, to include certain contracts for 
construction financed with assistance from the Federal 
Government.
     Amended the Order to clarify the authority of the 
President's Committee on Equal Employment Opportunity.
     Designated the Housing and Home Finance 
Administrator a member of the Committee.

     Report of the President's Council on Aging, December 16, 1963

Recommendations:
     Repayment of home rehabilitation loans be deferred 
for low- and moderate-income elderly homeowners living in urban 
renewal areas.
     Mortgage insurance for nonprofit nursing homes.
     Further study of a program to assist elderly 
homeowners to supplement their incomes with benefits based on 
equities in their homes while continuing to live in their 
homes.
     Single elderly persons be made eligible for 
certain special programs for moderate- income housing and 
relocation.
     Increased effort in appraisal of total housing 
needs of the elderly.

                     Foreign Assistance Act of 1963

                 (Public Law 88-205, December 16, 1963)

     Raised the ceiling on the total face amount of the 
guarantees which could be outstanding at any one time for 
housing projects in Latin-American countries from $60 million 
to $150 million.
     Directed the utilization of the services of 
private enterprise and Federal agencies in the provision of 
assistance in such fields as housing, health, education or 
agriculture.
     Presidential Budget Message (H. Doc. 88-265, 
January 21, 1964)
Recommendations:
     Legislation to provide authority and funds for 
continuing urban renewal, urban planning and open space grants, 
housing loans for the elderly and low-rent public housing.
     Legislation to create a Department of Housing and 
Community Development.
     Action on Federal aid to urban communities in 
order to modernize and enlarge necessary mass transportation 
facilities.
     Legislation to facilitate the sale of Federally-
owned mortgages to private investors.

                      Presidential Housing Message

                   (H. Doc. 88-306, January 27, 1964)

Recommendations:
Public Housing
     Authorization of 50,000 additional public housing 
units for each of the next four years; amendments to the public 
housing units, including rehabilitation where necessary, for 
use as public housing; authorization for local housing 
authorities to lease 40,000 housing units over the next four 
years; and an additional $5 million authorization to continue 
the demonstration program authorized by the 1961 Act.

Housing for the Elderly
     Recommended that the low interest direct Federal 
loan program for housing for the elderly be extended and 
additional funds appropriated, and that single elderly persons 
be made eligible for housing financed by Federally-insured 
below market interest loans.

Rural Housing
     Recommended that Congress enact an insured rural 
housing loan program and legislation to assist the housing 
problems of domestic farm labor.

Recommendations for Other Housing Programs
     Authorization to FHA and VA to correct substantial 
defects in new construction they have approved.
     Authority to FHA to encourage the temporary 
withholding of foreclosures against homeowners who default on 
their mortgages due to circumstances beyond their control.
     Authority for the pooling of mortgages held by 
FNMA and the VA and the sale of participations in such pools.
Recommendations for Urban Renewal
     An additional $1.4 billion of urban renewal funds 
for a two-year period.
     Additional relocation assistance for low- and 
moderate income families and small businessmen.
     A program of Federal insurance and purchase of 
low-interest loans with a deferral of amortization of principal 
for home rehabilitation by elderly homeowners in urban renewal 
areas.

Community Development
     Extension of the urban planning assistance program 
and the open space programs.
     A program of grants and loans to States and local 
governments for the planning and provision of necessary public 
facilities and of loan insurance for private developers 
constructing such facilities.
     A program of public facility loans with deferred 
amortization to enable communities to plan and build ahead of 
growth.
     Public facilities loans to be made available for 
advance acquisition of land for public improvements.
     Federal insurance of loans to private developers 
for acquisition and improvement of land for planned 
subdivisions.

Urban Mass Transportation
     Early enactment of a mass transit program along 
the lines proposed by the Administration and passed by the 
Senate in 1963.

Training
     A program of up to $25 million a year in matching 
grants to States for the establishment of urban public service 
training and research programs.

New Department
     Establishment by Congress of a Department of 
Housing and Community Development.

                        Civil Rights Act of 1964

                   (Public Law 88-352, July 2, 1964)

     Provided assurances and protections for a wide 
range of civil rights, including voting.
     Prohibited discrimination in public accommodations 
and under any program or activity receiving Federal financial 
assistance.
     Extended the life of the Civil Rights Commission.
     Gave enforcement power to the Attorney General.

                        Federal Credit Union Act

                   (Public Law 88-353, July 2, 1964)

     Authorized credit unions to treat insurance of FHA 
Title I home improvement loans as security for a loan.

                 Urban Mass Transportation Act of 1964

                   (Public Law 88-365, July 9, 1964)

     Authorized grants or loans by the Housing and Home 
Finance Administrator to assist States and local public 
agencies in financing the acquisition, construction and 
improvement of mass transportation facilities and equipment. 
Grants could be for up to 2/3 of that part of the cost of the 
facilities and equipment that could not reasonably be financed 
by revenues.
     Authorized appropriation of $375 million over 
three years for grants.
     Authorized loans where reasonable terms could not 
be obtained privately, if such loans would make effective mass 
transportation possible without grant assistance.
     Required the preparation of an areawide 
transportation plan as a part of comprehensive planning for the 
development of the urban area.
     Authorized for a three-year period, loans and 
grants on an emergency basis with less strict planning 
requirements but with reduced grants which could be raised if 
full planning requirements were met within three years.
     Authorized a $30 million research, demonstration 
and development program.
     Authorized assistance for acquisition of, or 
competition with, an existing private company only if just 
compensation was paid and it was found that such action was 
essential.

                  Amendments to the Alaska Omnibus Act

                  (Public Law 88-451, August 19, 1964)

     Authorized appropriations of $55,650,000 to 
provide assistance to the State of Alaska for reconstruction of 
areas damaged by the 1964 earthquake.
     Authorized the Housing Administrator to compromise 
or release notes or obligations held by him with respect to 
property in Alaska pursuant to public facility loans.
     Provided a special $25 million urban renewal grant 
authority for projects made necessary by the earthquake.
     Authorized the Housing Administrator to loan to 
the State, under the public facility loan program, up to $25 
million to help the State finance reconstruction activities 
related to the earthquake or to complete capital improvements 
begun prior to the earthquake.
     Authorized Federal matching grants to be made to 
the State to retire or adjust outstanding mortgages on one- to 
four-family homes severely damaged or destroyed by the 
earthquake.
     Authorized the Secretary of Agriculture to 
compromise or release a portion of borrowers indebtedness under 
programs administered by the Farmers Home Administration in 
Alaska as he found necessary due to loss resulting from the 
earthquake.
     Authorized the Secretary of Agriculture to 
refinance outstanding indebtedness on loans under the Housing 
Act of 1949 (P.L. 81-171) for construction or improvements of 
farm housing and buildings for the repair, reconstruction or 
replacement of earthquake-damaged or destroyed farm homes or 
buildings.
     Extended the terms of Small Business 
Administration disaster loans for dwellings in Alaska from 20 
to 30 years.

                    Economic Opportunity Act of 1964

                  (Public Law 88-452, August 20, 1964)

     Authorized among other means of combating poverty, 
financial and technical assistance for urban and rural 
Community Action Programs in a number of enumerated fields, 
including housing.
     Authorized for grant assistance up to 90 percent 
of the cost of such programs for the first two years and 50 
percent thereafter.
     Established an Economic Opportunity Council of 
which the HHFA Administrator was a member.

                          Housing Act of 1964

                 (Public Law 88-560, September 2, 1964)

Amendments to FHA Insurance Programs
     Increased the dollar limits on FHA-insured home 
mortgages ($25,000 to $30,000 for single-family homes) under 
the regular home mortgage insurance program and the urban 
renewal and condominium programs.
     Increased dollar per-unit limits on multifamily 
projects insured under Section 207.
     Increased the limit on a Section 220 (urban 
renewal) multifamily housing mortgage from $20 to $30 million 
in the case of a private mortgagor.
     Authorized FHA to insure supplemental loans made 
to consumer management-type cooperative mortgagors when made to 
provide funds to finance cooperative purchases and resales of 
memberships. Authorized FNMA to purchase the supplemental loans 
under its special assistance functions.
     Authorized FHA under certain circumstances to 
correct structural defects in homes purchased with FHA-insured 
mortgages, pay the homeowners' claims on account of the 
defects, or acquire the property, where the homeowners were 
unable to obtain relief from the builder or other sources.
     Permitted any mortgagor, including a trust, 
partnership, or individual, to be a mortgagor under the below-
market rental housing program for low- and moderate- income 
families (sec. 221(d)(3)) if the mortgagor is regulated by the 
FHA as to rents, charges, and methods of operation. Also 
authorized FHA to approve as a mortgagor under the program a 
mortgagor which has entered into an agreement with a private 
nonprofit corporation eligible for an insured mortgage under 
the program provided that the mortgagor will sell the project 
when it is completed to the corporation at the actual cost of 
the project.
     Required the mortgagor to whom the property was 
sold to be regulated by the FHA as to occupancy restrictions, 
income limits on tenants, rentals, and other restrictions.
Housing for the Elderly and Handicapped
     Made individual elderly persons 62 years of age or 
over eligible the same as families to purchase or occupy sales 
or rental housing financed under the FHA Section 221 program 
for low- and moderate-income and displaced families. (This 
included the low-rent housing financed with FHA-insured 
mortgages bearing below-market- interest rates.)
     Amended other provisions of housing laws to 
provide the same special treatment for handicapped persons and 
families as for the elderly.
     Increased the authorization for the direct loan 
program for housing the elderly and handicapped (sec. 202) by 
$75 million.

Nonprofit Nursing Homes
     Made nonprofit nursing homes eligible for FHA-
insured mortgages to finance their construction or 
rehabilitation on the same basis as proprietary nursing homes 
(to which the program was previously limited).

New Rehabilitation Housing Loan Program (Section 312)
     Authorized the Housing Administrator to make low-
interest rate (3 percent) Federal loans to owners or tenants of 
homes or business property in urban renewal areas to finance 
the rehabilitation required to make the property conform to 
code requirements or to carry out the objectives of the urban 
renewal plan for the area in order to reduce the need for 
demolition and removal of structures which could be 
rehabilitated. (Repealed by the National Affordable Housing 
Act, P.L. 101-625.)
     Required the loan to be an acceptable risk and the 
borrower to be unable to secure the necessary funds from other 
sources on reasonable terms and conditions.
     Limited the maturity to 20 years or three-fourths 
of the remaining economic life of the structure after 
rehabilitation, whichever was less.
     Limited the amount of a loan to the cost of 
rehabilitation (except in the case of refinancing) or $10,000 
in the case of a dwelling unit, or $50,000 in the case of 
business property.
     Authorized appropriations up to $50 million, to be 
made to a revolving fund for the loan program.

Relocation Payments
     Authorized relocation adjustment payments to be 
made for small businesses, and families and elderly individuals 
displaced from urban renewal areas. (These payments were in 
addition to the existing urban renewal relocation payments 
covering moving expenses and direct losses of property.)
     Made families, individuals, businesses, and 
nonprofit organizations displaced from low-rent public housing 
project sites eligible to receive the same relocation payments 
as those displaced by urban renewal.
     Required suitable relocation housing to be 
provided for those displaced in the acquisition of public 
housing sites, as in the case of urban renewal.

Public Housing
     Included single persons displaced by urban renewal 
or other governmental action among families eligible for 
admission to public housing.
     Authorized additional annual contributions 
payments, up to $120 per year, for units occupied by families 
displaced as a result of urban renewal or acquisition of public 
housing sites (in addition to those for elderly).
     Deleted the provision adopted in the Housing Act 
of 1954 (P.L. 83-530) which limited payments in lieu of taxes 
by public housing authorities to amounts which would not reduce 
the local contribution to less than 20 percent of the Federal 
contributions.

Urban Renewal
     Authorized a new type of urban renewal project 
consisting entirely or substantially of a program of intensive 
code enforcement in an urban renewal area. Authorized the cost 
of code enforcement activities carried out in clearance and 
redevelopment projects, and in rehabilitation or conservation 
projects to be included as part of eligible project cost.
     Required after September 2, 1967, that no workable 
program could be certified or recertified unless the locality 
involved had in effect for at least six months an adequate 
minimum standards housing code and was carrying out an 
effective program of enforcement compliance with the code.
     Authorized urban renewal projects which use air 
space rights and elevated platforms to provide sites for low- 
and moderate-income housing and related facilities and uses. 
Permitted an air rights project to be undertaken in an area 
which was not itself a slum, blighted or deteriorated area but 
which consisted principally of land in highways, railway or 
subway tracts, bridge or tunnel entrances, or other similar 
facilities which have a blighting influence on the surrounding 
area.
     Permitted the sale of rural property in an urban 
renewal area at a special reduced price to purchasers who will 
use the property to provide housing for low- or moderate-income 
individuals.

Training and Fellowship Programs
     Authorized the Housing Administrator to make 
grants to States to assist in carrying out a new system of 
Federal-State training programs designed to develop the skills 
needed for economic and efficient community development and to 
provide new and improved methods of dealing with community 
development problems.
     Authorized appropriations up to $10 million for 
the grants.
     Authorized up to $500,000 a year for a three-year 
period to be appropriated to provide fellowships in public and 
private nonprofit institutions of higher learning for the 
graduate training of professional city planning and urban and 
housing technicians and specialists.

Rural Housing
     Authorized an additional $150 million for housing 
loans by the Farmers Home Administration.
     Increased the amount of a loan which could be made 
for rental housing and related facilities for elderly persons 
and elderly families in rural areas from $100,000 to $300,000.
     Authorized grants to be made of up to two-thirds 
of the cost of providing low-rent housing for domestic farm 
labor, upon the application of a State or political subdivision 
of a State, or any public or private nonprofit organization.
     Changed the definition of ``domestic farm labor'' 
to include aliens who had been admitted to the United States 
with the expectation of becoming permanent residents.
     Authorized up to $10 million for the new program 
for the period ending September 30, 1965.

Federal National Mortgage Association
     Authorized FNMA to sell beneficial interests or 
participations in first mortgages (or interests in them) in 
which the U.S. had a financial interest.
     Enabled national banks and Federal Home Loan Banks 
to invest in instruments issued by FNMA in its fiduciary 
capacity.
     Enabled the Veterans Administration to join in the 
pooling and sale of mortgages by FNMA and participations in 
mortgages.
     Eliminated the statutory limit of $20,000 per 
family residence or dwelling unit on a mortgage purchased by 
FNMA in its secondary market operations.
     Increased the authority of FNMA (under its 
secondary market operations) to make short-term loans on the 
security of insured or guaranteed mortgages to not to exceed 90 
percent (rather than 80 percent as previously provided) of the 
unpaid principal amounts of mortgages securing the loans.

Savings and Loans Associations
     Permitted savings and loan associations to make 
loans in a 100-mile area rather than the previous 50-mile area.
     Raised the limit on the amount of a home loan made 
by a Federal savings and loan association from $35,000 to 
$40,000.
     Authorized Federal savings and loan associations 
to invest up to 5 percent of assets in real property or 
interests in real property located in urban renewal areas and 
obligations secured by first liens on real property in such 
areas.
     Permitted a Federal Home Loan Bank to accept as 
collateral for advances to a member nonfederally insured or 
guaranteed home mortgages with maturities of up to 30 years and 
amounts up to $40,000 (previously 25 years and $35,000).
     Authorized Federal savings and loan associations 
to invest in general obligations of States and their political 
subdivisions and in participations or other instruments of, or 
fully guaranteed by, FNMA or any agency of the U.S.
     Permitted Federal savings and loan associations to 
invest up to 20 percent of assets (previously 15 percent) in 
FHA-insured property and home improvement loans, VA- insured 
and guaranteed loans, and other loans for property alteration 
repair, or improvement. Increased the maximum amount of any 
such loan which was not insured or guaranteed by FHA or VA from 
$3,500 to $5,000.
     Permitted Federally-controlled public funds and 
funds of Federal corporations to be invested in insured 
accounts held by savings and loan associations.

           Federal Development Planning Committee for Alaska

                (Executive Order 11182, October 2, 1964)

     Established the Federal Field Committee for 
Development Planning in Alaska with the Housing and Home 
Finance Administrator a member of the Committee.
     Directed the Committee to develop coordinated 
plans for Federal programs which contribute to economic and 
resources development in Alaska.

                   The Foreign Assistance Act of 1964

                  (Public Law 88-633, October 7, 1964)

     Increased the ceiling on Latin American housing 
guarantees from $150 million to $250 million.

                Presidential State of the Union Message

                    (H. Doc. 89-1, January 4, 1965)

     Recommended, among other things, establishment of 
a Department of Housing and Urban Development.

                         Relocation Assistance

  (Report of the Advisory Commission on Intergovernmental Relations, 
                             January 1965)

     Entitled ``Relocation: Unequal Treatment of People 
and Business.''
     Recommended a uniform policy of relocation 
payments and advisory assistance for persons and businesses 
displaced by grant-in-aid or direct Federal programs.

          Delegation of Functions to the Housing Administrator

               (Executive Order 11196, February 2, 1965)

     Delegated to the Housing and Home Finance 
Administrator functions relating to public housing, and the 
Alaska Omnibus Act. (The provisions of this Order supersede the 
following: Part III of EO 10530, May 10, 1954; EO 10573, 
October 26, 1954; EO 10852, November 27, 1959; portions of EO 
11184 (October 13, 1964) which amend EO 10530.)

                   Presidential Message on the Cities

                     (H. Doc. 89-99, March 2, 1965)

Proposals:
     Establishment of a Department of Housing and Urban 
Development.
     A program of matching grants to local governments 
for building new basic community facilities, contingent upon 
comprehensive area-wide planning for future growth.
     A program for financial assistance to help in 
advance acquisition of land.
     A program of Federally-insured private loans 
backed by Federal mortgage purchases where necessary to finance 
the acquisition and development of land for entire new 
communities and planned subdivisions.
     Establishment of an Institute of Urban Development 
as part of the new Department, to help support training of 
local officials in a wide range of administrative and program 
skills; administer grants to States and cities for studies and 
the other basic research and support research aimed especially 
at reducing the costs of building and home construction through 
the development of new technology.
     Establishment of a Temporary National Commission 
on Codes, Zoning, Taxation and Development Standards.
     Emphasis on relocation and rehabilitation by:
          (1) providing rent supplement assistance to those 
        forced out of their homes by code enforcement and all 
        forms of Federally-assisted government action from 
        highways to urban renewal;
          (2) using both urban renewal funds and public housing 
        funds to rehabilitate existing housing and make it 
        available to low and moderate income families;
          (3) emphasizing residential construction and 
        rehabilitation on a neighborhood-wide scale in the 
        urban renewal program.
     Continuation of the public housing program with 
authorization enough to permit an increase in the number of new 
units as well as to conduct a program of rehabilitation.
     Continuation at the rate of 40,000 additional 
units for FY 1966 of the program of below-market interest rate 
mortgage benefits for housing for moderate-income families.
     Continued support for the college housing program.
     Increasing the urban renewal program to a level of 
$750 million a year by 1968, with the requirement that every 
city of 50,000 or more have a community renewal program as a 
condition of additional Federal help for urban renewal.
     A new program of matching grants to help local 
governments build multipurpose neighborhood centers for health 
and recreational and community activities.
     Changes in the open space program broadening its 
authority to help local governments acquire and clear areas to 
create small parks and squares, malls and playgrounds.
     Special grants to cities for landscaping, the 
planting of trees, the improvement of city parks, and other 
measures.

              Appalachian Regional Development Act of 1965

                    (Public Law 89-4, March 9, 1965)

     Established the Appalachian Regional Commission to 
develop and coordinate plans for the economic development of 
the Appalachian area and to establish a framework for joint 
Federal-State efforts toward meeting the area's special 
problems.
     Authorized the Secretaries of Commerce, HEW and 
Agriculture, respectively, to carry out grant programs in the 
region in support of such various public facilities and 
activities as highways and access roads, health facilities, and 
programs of land development, conservation and management.
     Made the Commission and participating States 
eligible for urban planning grants from the Housing and Home 
Finance Administrator.
     Authorized supplemental Federal grants for 
programs for construction or equipment of facilities and the 
acquisition of land under the Water Pollution Control Act, 
Higher Education Facilities Act of 1963, and the Land and Water 
Conservation Fund Act of 1965, among others.
     Authorized grants for administrative expenses of 
local development districts and for research and demonstration 
projects furthering purposes of the Act.

                            Disaster Relief

                   (Public Law 89-41, June 17, 1965)

     Provided disaster assistance to the Northwest area 
for the reconstruction of areas damaged by floods late in 1964 
and early in 1965.
     Extended the maximum maturity of a disaster loan 
by the Small Business Administration for the replacement, 
reconstruction, or repair of a dwelling from 20 years to 30 
years, effective until June 30, 1966.

                    Amendment to Small Business Act

                   (Public Law 89-59, June 30, 1965)

     Extended from 20 years to 30 years the maximum 
maturity of Small Business Administration 3 percent disaster 
loans to rebuild homes and business establishments.

                        National Housing Council

               (Reorganization Plan No. 4, July 27, 1965)

     Abolished the National Housing Council and 
transferred its functions to the President.

               Housing and Urban Development Act of 1965

                  (Public Law 89-117, August 10, 1965)

Rent Supplements
     Authorized a new program of rent supplement 
payments to help make certain privately-owned housing available 
to low-income individuals and families who were elderly, 
handicapped, displaced by governmental action, occupants of 
substandard housing, or occupants or former occupants of 
dwellings damaged or destroyed by a natural disaster subsequent 
to April 1, 1965.
     Limited assistance to tenants whose income did not 
exceed the maximum amount permitted in the area for occupancy 
of low-rent public housing.
     Limited rent supplement payments to the amount by 
which the fair market rental for the unit exceeded one-fourth 
of the tenant's income. (Payments were reduced as the income of 
the tenant increased. When the tenant could pay the full rent 
he could continue to occupy the unit.)
     Limited payments to the owner of the housing to an 
amount specified in the contract with the Housing Administrator 
for a period of not more than 40 years.
     Authorized, subject to appropriation, a total of 
$150 million by July 1, 1968; payments could not exceed $30 
million before July 1, 1966, and this amount was increased by 
$35 million on July 1, 1966, $40 million on July 1, 1967, and 
$45 million on July 1, 1968.
     Made available on an experimental basis: (1) 5 
percent of the funds approved for rent supplements, for housing 
financed with FHA-insured mortgages under the below- market 
interest rate program; and (2) 5 percent for housing for the 
elderly financed with a direct Federal loan or under the FHA 
mortgage insurance program for rental housing for the elderly.
Amendment of FHA Sec. 221 Program for Low- or Moderate-Income Housing
     Reduced the interest rate ceiling on the below-
market interest rate mortgages to 3 percent (previously 4 
percent).

Low-Rent Public Housing
     Authorized contracts for assistance to 
approximately 240,000 additional low-rent public housing units 
over the next four years.
     Permitted the public housing program to use 
existing housing through purchase, purchase and rehabilitation, 
or leasing (Section 23).
     Raised the ceiling on the construction and 
equipment cost per room from $2,000 to $2,400 with 
corresponding increases in the special cost limits for Alaska 
and dwelling units designed specifically for the elderly.

Direct Loans for Housing for the Elderly or Handicapped
     Increased the limit on appropriations for Federal 
loans for housing for the elderly or handicapped from $350 
million to $500 million.
     Reduced the interest rate on the loans to a 
maximum of 3 percent (previously 4 percent).

Rehabilitation Grants
     Authorized rehabilitation grants to be made to 
owner-occupants of homes in urban renewal areas and Federally-
assisted code enforcement areas for repairs required to make 
the homes conform to applicable codes or urban renewal plan 
requirements. Where the homeowner's income was not over $3,000 
a year the grant could be up to the lesser of $1,500 or the 
cost of the repairs. If the income was over $3,000 a year, the 
grant could not exceed that portion of the cost of repairs 
which could not be paid for with a loan which could be 
amortized along with the borrower's other monthly housing 
expense, within 25 percent of his monthly income.

Title VII--Community and Neighborhood Facilities
     Authorized grants to local public bodies and 
agencies to finance up to 50 percent of the development cost of 
basic water and sewer facilities subject to certain planning 
requirements.
     Authorized grants to local bodies and agencies to 
finance neighborhood facilities, such as community centers, 
youth centers, health stations, and other public buildings to 
provide health or recreational or social services to a 
neighborhood. Limited a grant to two-thirds of the development 
cost (except that it could be three-fourths if the project were 
located in a redevelopment area designed under the Public Works 
and Economic Development Act). Gave priority to projects that 
benefited primarily low- income families or otherwise furthered 
the objectives of the antipoverty program.
     Authorized the Housing Administrator to make 
grants to local public bodies and agencies for the advance 
acquisition of land for community facilities. A grant could not 
exceed the aggregate amount of reasonable interest charges, on 
a loan incurred to finance the acquisition of the land, for a 
period not exceeding the lesser of (1) five years from the date 
the loan was made, or (2) the period between the date the loan 
was made and the date construction of the facility began.
     Authorized public facility loans to private 
nonprofit corporations for the construction of works for the 
storage, treatment, purification, or distribution of water or 
the construction of sewage treatment, and sewer facilities, if 
the works or facilities were needed to serve a smaller 
municipality or rural area, and there was no existing public 
body able to construct and operate the works or facilities.

Land Development
     Authorized a new FHA mortgage insurance program as 
Title X of the National Housing Act to finance the cost of land 
development for residential and related uses. The development 
financed could include the acquisition of land and the 
installation of water and sewer lines, streets, curbs, 
sidewalks, and storm facilities.
     Limited the amount of a mortgage to $10 million or 
50 percent of the value of the land before development plus 90 
percent of the cost of development or 75 percent of value upon 
completion of the land development.
     Limited the maturity of a mortgage to seven years, 
or such longer maturity as the FHA deemed reasonable in the 
case of a privately owned system for water or sewerage. FHA 
could prescribe maximum interest rates, the premium charges, 
and service charges and fees.
    (Authority to make grants for water and sewer facilities 
and for neighborhood facilities was repealed, effective January 
1, 1975, in the Housing and Community Development Act of 1974, 
P.L. 93-383, August 22, 1974. Title X was repealed in the 
Department of Housing and Urban Development Reform Act of 1989, 
P.L. 101-235, December 15, 1989.)

Relief for Homeowners Unemployed as a Result of the Closing of a 
        Federal Installation
     Authorized FHA and VA to pay, for not more than 1 
year, the principal and interest payments on FHA or VA 
mortgages where the mortgagors were unemployed as a result of 
the closing in whole or in part of a Federal installation and 
this action was the only means whereby mortgage foreclosure 
could be avoided. Required the homeowner to repay the payments 
made by either FHA or VA in accordance with the requirements of 
his agreement with the agency.
     Authorized the Secretary of Defense to acquire 
one- or two-family dwellings situated at or near a military 
installation which was closed or partially closed after 
November 1, 1964, if he determined that there was no present 
market for the sale of the property upon reasonable terms and 
conditions and that the owner's employment at the installation 
was terminated by its closing. The purchase price paid by the 
Secretary was equal to the average price at which similar 
properties in the locality were sold prior to announcement of 
the closing.

Open-Space Land and Urban Beautification and Improvement
     Authorized grants for the development of land for 
open-space uses in addition to the acquisition of land. Defined 
the term ``open-space uses'' to include development for park 
and recreational purposes, conservation of land and other 
natural resources, and historic or scenic purposes.
     Increased the limit on the amount of a grant from 
20 percent (or 30 percent where the applicant exercised open-
space responsibility for all or a substantial part of the urban 
area) to 50 percent of the total cost of land acquisition and 
its development for open- space uses.
     Authorized the Housing Administrator to make 
grants to State and local public bodies to assist in the 
acquisition of developed land in built-up portions of urban 
areas to be cleared and developed for open- space uses, where 
open-space land could not be provided through the use of 
undeveloped land. The grants could cover 50 percent of the cost 
of land acquisition, removal of improvements, and development.
     Authorized the Administrator to make grants to 
State and local public bodies to assist in carrying out local 
programs for the greater use and enjoyment of open-space and 
other public land in urban areas (urban beautification and 
improvement) that were important to the comprehensively planned 
development of the locality. Limited the grants to not more 
than 50 percent of the amount by which the cost of the urban 
beautification and improvement exceeded the locality's usual 
expenditures for comparable activities.
     Increased the authorization for grants under the 
open-space program by $235 million (from $75 million to $310 
million). Not more than $64 million could be used for the new 
open-space program in built-up urban areas and not more than 
$36 million could be used for the new program of urban 
beautification and improvement.

Other FHA Mortgage Insurance Programs
     Increased the dollar limits on the amount of an 
insured mortgage (1) from $11,000 to $12,500 on a home in an 
outlying area; (2) from $20,000 to $30,000 on a home for a 
serviceman; and (3) from $2,250 to $3,000 per family unit in 
rental housing dwelling units with four or more bedrooms.
     Decreased downpayments from 25 percent to 20 
percent on that part of the value of a home which exceeded 
$20,000 where it was financed under the regular home mortgage 
insurance program and the programs for the military, NASA and 
AEC.
     Authorized a new mortgage insurance program for 
veterans under which a veteran could purchase a home with an 
FHA-insured mortgage with no downpayment required on the first 
$15,000 of the value of the home, a 10 percent downpayment on 
the value of the home over $15,000 but not in excess of 
$20,000, and 15 percent downpayment on the value in excess of 
$20,000.
     Directed the FHA to adopt a uniform procedure for 
the acceptance of materials and products used in housing 
financed with FHA-insured loans. Required any material or 
product which was found technically suitable to be accepted. 
(Acceptance did not restrict the discretion of the FHA to 
determine that a structure, with respect to which a mortgage 
was executed, was economically sound or an acceptable risk.)
     Placed FHA's mortgage insurance program for 
management-type cooperatives on a mutual basis.
     Consolidated all of FHA's insurance funds, except 
the mutual mortgage insurance fund, into a single general 
insurance fund.
     Authorized the FHA in its discretion, to pay 
either in cash or in debentures any insurance claim filed by 
the mortgagee under any of its programs. (The FHA was 
authorized to obtain funds for the cash payments by borrowing 
from the U.S. Treasury. Previously, payments had to be in 
debentures, except in limited cases.)
     Prohibited FHA from insuring any mortgage which 
covered new construction if the housing was not served by a 
public or adequate community water and sewerage system where 
(1) the property was not served by a system approved by FHA 
under the new mortgage insurance program for land development, 
and (2) was situated in an area certified by appropriate local 
officials to be an area where the establishment of public or 
adequate community water and sewerage systems was economically 
feasible.

Section 220 Urban Renewal Mortgage Insurance
     Increased the maximum amount of an FHA Section 220 
urban renewal housing mortgage where the mortgagor was not the 
occupant of the property but intended to hold it for rental 
purposes, from 85 percent of the amount an owner-occupant could 
receive to 93 percent of such amount (i.e., about 90 percent of 
value or cost).
     Expanded the class of nondwelling facilities which 
could be included in a project financed under FHA's Section 220 
urban renewal housing program to include such nondwelling 
facilities as the FHA deemed desirable and consistent with the 
urban renewal plan, so long as the project was predominantly 
residential and the FHA found that any nondwelling facility 
included in the mortgage contributed to the economic 
feasibility of the project.

Federal National Mortgage Association
     Increased the amount of special assistance that 
the President could authorize FNMA to provide for residential 
mortgage by $1,625 million over four years, in specified yearly 
increments.
     Increased the President's special assistance 
authority by transferring to it special assistance authority 
provided for FHA Title III mortgages on housing for the 
military, NASA, and AEC.
     Enabled FNMA to purchase government underwritten 
mortgages from Federal instrumentalities having authority to 
effect sales of such mortgages to FNMA.
     Authorized FNMA to purchase any obligations 
offered by the Housing Agency, or any mortgages covering 
residential property offered by any Federal instrumentality.
     Authorized FNMA, under its special assistance 
authority, to purchase below-market interest rate mortgages on 
low- or moderate-income housing (insured under FHA's sec. 
221(d)(3) program) having original principal amounts exceeding 
$17,500 per dwelling unit, where the mortgages covered 
properties having the benefit of local tax abatement. The tax 
abatement had to be in an amount sufficient to keep rentals at 
the level where they would be if the mortgage amount did not 
exceed $17,500 per dwelling unit.
     Increased the general limit per dwelling unit on 
the amount of a mortgage FNMA could purchase under its special 
assistance authority from $17,500 to $20,000 in the case of a 
mortgage financing a family residence having four or more 
bedrooms.

Urban Renewal
     Increased the urban renewal grant authorization by 
$2.9 billion over the next four years.
     Permitted 35 percent of the additional $2.9 
billion grant authority to be used in nonresidential areas for 
projects contemplating nonresidential use.
     Required that (1) a relocation assistance program 
include information as to real estate agencies, brokers and 
boards which deal in residential or business property that 
might be appropriate for the relocating of displaced 
individuals, families, and business concerns; and (2) as a 
condition to further assistance to each urban renewal project 
involving the displacement of individuals or families, the 
local urban renewal agency present satisfactory assurance to 
the Housing Administrator (prior to displacement) that decent, 
safe, and sanitary dwellings were available for the relocation 
of the individuals or families.
     Made not less than 10 percent of (1) the 
additional capital grant authority provided by the Act and 
subsequent laws and (2) the rehabilitation loans authority 
available for projects involving primarily code enforcement and 
rehabilitation.
     Authorized grants to cities and counties to assist 
them in carrying out programs of concentrated code enforcement 
in deteriorating areas.
     Limited the grants to not more than two-thirds (or 
three-fourths in the case of a city or county with a population 
of 50,000 or less) of the cost of planning and carrying out the 
programs. The grants were contingent upon the locality (1) 
having an approved workable program for community improvement, 
(2) having a satisfactory program for providing all necessary 
public improvements for the assisted areas, and (3) agreeing to 
maintain its prior level of expenditures for code enforcement 
in addition to its expenditures for planning and carrying out 
the code enforcement program to be assisted.
     Authorized grants to cities and counties to 
finance up to two-thirds of the cost of demolishing unsafe 
structures in urban renewal areas, or, in the case of 
structures outside urban renewal areas, grants could be made if 
(1) the locality had an approved workable program for community 
improvement; (2) the demolition would be on a planned 
neighborhood basis; (3) there was in the locality a program of 
enforcement of housing and related codes; (4) the structures to 
be demolished were a serious hazard to public health or 
welfare, and (5) the local governing body determined that other 
legal procedures for remedial action had been exhausted.
     Authorized appropriations of $100 million for each 
fiscal year for low-interest rate rehabilitation loans for 
homes and business concerns in both urban renewal and code 
enforcement areas.
     Permitted inclusion of the cost of relocating 
historic structures within an urban renewal project area as 
part of an eligible urban renewal project cost.

Condemnation and Relocation
     As a condition of eligibility for Federal 
assistance under the low-rent public housing program, the urban 
renewal program, the urban mass transportation program, the 
public facility loans program, the open space land program, the 
programs of grants for community and neighborhood facilities, 
and the advance acquisition of land for future public 
facilities, required each applicant for assistance to satisfy 
the Housing Administrator that the following policies would be 
followed in connection with the acquisition of real property by 
eminent domain under the programs to be assisted:
          (i) The applicant will make every reasonable effort 
        to acquire the property by negotiation.
          (ii) No owner will be required to surrender 
        possession of real property before receiving the agreed 
        purchase price or, in any case where only the amount of 
        payment to the owner is in dispute, not less than 75 
        percent of the appraised fair value of the property.
          (iii) Construction of public improvements will be so 
        scheduled that no person occupying the property will be 
        required to surrender possession without at least 90 
        days written notice of the date the construction would 
        begin.
     Made eligible for relocation payments like those 
provided under the urban renewal and public housing programs, 
families, individuals, business concerns, and nonprofit 
organizations displaced by activities assisted under the public 
facility loans program, the urban mass transportation program, 
the open space land program, and the programs of grants for 
community and neighborhood facilities and the advance 
acquisition of land for future public facilities.
     Increased the relocation adjustment payment for 
displaced small business concerns from $1,500 to $2,500.
College Housing
     Increased the authorization for college housing 
loans by increments of $300 million beginning July 1, in each 
of the years 1965 through 1968 a total of $1.2 million.
     Changed the interest rate on college housing loans 
by placing a ceiling of 3 percent (or the amount derived from 
the statutory formula, if lower) on the rate. (Previously the 
rate was 3 7/8 percent.)
     Made new colleges and certain public vocational 
and technical institutions eligible for loans.

Urban Planning Grants
     Increased the authorization of appropriations for 
urban planning grants by $125 million. Permitted up to 5 
percent of the funds appropriated to be used for grants for 
studies, research and demonstration projects, improvement of 
techniques for planning and for advancement of urban planning 
assistance program.
     Made organizations composed of public officials in 
metropolitan or urban regions eligible for urban planning 
grants.

Savings and Loan Associations
     Liberalized the authority of Federal savings and 
loan associations to make loans on college, university, or 
hospital residential facilities.
     Permitted the associations to make loans secured 
by leaseholds where the terms of the leases were 10 years 
rather than the previous 15 years.
     Authorized the associations to invest up to 1 
percent of the association's assets, as approved by the Federal 
Home Loan Bank Board, in certain loans for housing projects in 
Latin America which are guaranteed by the United States.

Rural Housing
     Defined term ``rural area'' to mean any open 
country, or any place, town, village, or city which is not part 
of or associated with an urban area and which (1) has a 
population not in excess of 2,500 inhabitants; or (2) has a 
population in excess of 2,500 but not in excess of 5,500 if it 
is rural in character.
     Increased the interest rate to 5 percent on direct 
loans for housing on farms and on nonfarm rural homesites, 
except for loans to elderly persons. (The maximum rate on loans 
to the elderly and on certain specialized loans remained at 4 
percent.)
     Authorized the Secretary of Agriculture to charge 
fees on the loans.
     Authorized the Secretary of Agriculture to make 
loans to farmers and rural residents for the purchase of 
previously occupied dwellings and related facilities and farm 
service buildings, and for minimum adequate building sites.
     Authorized the Secretary of Agriculture to insure 
loans, and to make loans to be sold and insured to persons of 
low- or moderate-income. Limited the interest rate to 5 
percent.
     Limited the loans to adequate housing modest in 
size, design, and cost. To assure the marketability of the 
loans at face value and the participation of private lenders in 
the program, authorized the Secretary to insure, or to sell and 
insure, any of the loans on terms giving the insured lender or 
purchaser a specified portion of the interest earnings and an 
optional right to resell to the Secretary within an agreed 
period.
     Authorized an aggregate of $300 million per year 
in loans described immediately above.
     Established the Rural Housing Insurance Fund. 
Authorized the Secretary to borrow from the Treasury to meet 
loan insurance obligations and to make other authorized 
expenditures from the fund.
     Established the Rural Housing Direct Loan Account 
and transferred certain loans and funds available from 
appropriations or Treasury borrowings for the loans to the 
Account.
National Banks
     Authorized national banks to make FHA-insured land 
development loans, and increased the maximum maturity of 
industrial, commercial, and residential construction loans from 
18 months to 24 months.

           Independent Offices Appropriations Act for FY 1966

                  (Public Law 89-128, August 16, 1965)

     Established annual appropriations control over 
various programs of the Housing and Home Finance Agency which 
had heretofore been carried out under contract authority or 
similar arrangements considered to constitute ``back-door 
financing.'' (In general, back-door financing may be defined as 
any grant of authority in an enabling statute which authorizes 
an Executive officer or agency to enter into contracts binding 
upon the United States to make payments in amounts or for 
purposes authorized, but prior to the inclusion of such amounts 
or purposes in an appropriation act.)
     This was accomplished by the inclusion of language 
effectively limiting the Agency's power to make commitments to 
the cumulative amounts appropriated for such commitments, for 
new commitments under the programs of urban renewal, open space 
land grants, and low-income housing demonstration grants.

                     Foreign Assistance Act of 1965

                 (Public Law 89-171, September 6, 1965)

     Authorized an appropriation of $210 million for 
technical cooperation and development grants, increased from 
$2.5 billion to $5 billion the ceiling on the volume of 
specific risk guaranties which could be issued, placed a 
limitation of $175 million for purposes other than housing 
projects out of the $300 million previously authorized for 
extended risk guaranties, and increased from $250 million to 
$400 million the total face amount of Latin American housing 
guaranties that could be outstanding at any one time.
     Extended provisions expressing the sense of 
Congress on stimulating private home ownership in Latin America 
to include cooperatives, free labor unions, savings and loan 
institutions, and other private enterprise programs engaged 
directly or indirectly in the financing of home mortgages, the 
construction of homes for lower-income families, and the 
increased mobilization of savings and the improvement of 
housing conditions.

            Department of Housing and Urban Development Act

                 (Public Law 89-174, September 9, 1965)

     Established the Department of Housing and Urban 
Development, headed by a Secretary of Housing and Urban 
Development. There were to be in the Department five Assistant 
Secretaries, a General Counsel, and a Director of Urban Program 
Coordination.
     Designated one of the Assistant Secretaries to be 
the Federal Housing Commissioner, to administer departmental 
programs relating to the private mortgage market.
     Directed the Secretary, among other 
responsibilities, to advise the President with respect to 
Federal programs and activities relating to housing and urban 
development; to develop and recommend to the President policies 
for fostering the orderly growth and development of the 
Nation's urban areas; to exercise leadership at the direction 
of the President in coordinating Federal activities affecting 
housing and urban development; to provide technical assistance 
and information (including a clearinghouse service) to aid 
State, county, town, village, or other local governments in 
developing solutions to community and metropolitan development 
problems; to consult and cooperate with State Governors and 
State agencies, including, when appropriate, holding informal 
public hearings, with respect to Federal and State programs 
which assist communities in solving community and metropolitan 
development problems and which encourage regional cooperation 
in planning and development; to encourage comprehensive 
planning by State and local governments with a view to 
coordinating Federal, State, and local urban and community 
development activities; to encourage private enterprise to 
serve as large a part of the Nation's housing and urban 
development needs as it can and to cooperate fully with private 
enterprise; and to conduct continuing studies of housing and 
urban development problems.
     Transferred to the Secretary all the functions, 
powers, and duties of the Housing and Home Finance Agency, the 
Federal Housing Administration, and the Public Housing 
Administration, and the functions, powers, and duties of the 
heads and other officials of those agencies.
     Transferred the Federal National Mortgage 
Association, as a corporate entity, together with its 
functions, powers, and duties, to the Department. Vested the 
Secretary of the Department with the functions, powers and 
duties of the Housing and Home Finance Administrator with 
regard to FNMA, and made him Chairman of the Board of Directors 
with power to appoint the other members of the Board.
     Directed the President of the United States to 
undertake studies of the organization of housing and urban 
development programs within the Federal Government, and to 
provide Congress with the results of the studies, together with 
recommendations on the possible transfer of functions and 
programs to or from the Department.
     Required the Secretary to make an annual report to 
the President for submission to the Congress on Department 
activities during the preceding calendar year.

        Consolidated Farmers Home Administration Act Amendments

                  (Public Law 89-240, October 7, 1965)

     Authorized grants, loans and loan insurance to 
assist in the development of water, waste disposal and 
recreation projects in rural areas.
     Required comprehensive planning, and made 
provision for assistance to needy areas in preparing 
comprehensive plans.
     Defined a rural area so as not to include any area 
in any city or town which had a population in excess of 5,500 
inhabitants.

            Southeast Hurricane Disaster Relief Act of 1965

                 (Public Law 89-339, November 8, 1965)

     Directed the Secretary of Housing and Urban 
Development to undertake an immediate study of alternative 
programs which could be established to help provide financial 
assistance to persons suffering property losses in flood and 
other natural disasters, including alternative methods of 
Federal disaster insurance in addition to the existing flood 
insurance program.

        Presidential Message on Demonstration Cities Act of 1966

                   (H. Doc. 89-368, January 26, 1966)

Proposals
     A new demonstration cities program, in which 
special supplementary grants would be used to encourage 
selected cities of various sizes to undertake coordinated 
programs utilizing all forms of assistance for housing, 
renewal, transportation, education, welfare, economic 
opportunity and related problems, and emphasizing social 
services as well as improvements to the physical environment.
     A program of demonstrations of effective 
comprehensive planning for metropolitan areas. Legislation to 
bar racial discrimination in the sale or rental of housing.
     Improvements in authorizing legislation for 
assistance to developers of new communities.
     Continued funding and authorization for various 
existing housing and community development programs.

                      Presidential Economic Report

                   (H. Doc. 89-348, January 27, 1966)

     Recommended legislation to give regulatory 
agencies a wider range of effective enforcement remedies; 
strengthen statutory provisions dealing with savings and loan 
holding companies; increase the maximum amount of insurance 
coverage for bank deposits and savings and loan accounts; 
provide safeguards against conflicts of interest in the 
management of these institutions; make regulations applicable 
to various types of institutions as parallel as possible; and 
provide for Federal chartering of mutual savings banks.

                   Presidential Civil Rights Message

            (Congressional Record, p. 9390, April 28, 1966)

     Asked the Congress, among other things, to declare 
a national policy against racial discrimination in the sale or 
rental of housing and create effective remedies against such 
discrimination.

          President's Council on Recreation and Natural Beauty

                  (Executive Order 11278, May , 1966)

     Established the Council to review plans and 
programs of Federal agencies for or affecting outdoor 
recreation and natural beauty, conduct studies in those fields, 
and accomplish effective coordination in the fields. Designated 
the Secretary of HUD as a member.

 Substantive Provisions in Second Supplemental Appropriation Act, 1966

                   (Public Law 89-426, May 13, 1966)

     Required that to receive rent supplements a 
project must be either part of a workable program for community 
improvement or have local official approval for participation 
in the program.

                    Participation Sales Act of 1966

                   (Public Law 89-429, May 24, 1966)

     Authorized FNMA, as trustee, to sell certificates 
of participation in pools of mortgages or other types of 
obligations offered to it by the Farmers Home Administration, 
the Office of Education, the Export Import Bank, and the Small 
Business Administration. (FNMA had previously been given this 
authority with respect to obligations owned by the Department 
of Housing and Urban Development and the Veterans' 
Administration and FNMA.)
     Reduced the authority of FNMA to purchase 
mortgages under its special assistance program by $450 million. 
Reduced the authority for college housing loans by $300 
million. (These reductions were said to be made possible by the 
increased sales of participations certificates in existing 
loans.)
     Directed the Secretary of the Treasury to conduct 
a study on the feasibility, advantages, and disadvantages of 
direct loan programs compared to guaranty or insured loan 
programs, and report his findings to Congress within six months 
after the effective date of the Act.

                      Evaluation of Flood Hazards

                (Executive Order 11296, August 10, 1966)

     Directed Federal agencies to provide leadership in 
encouraging a broad effort to prevent uneconomic uses and 
development of the Nation's flood plains and, in particular, to 
lessen the risk of flood losses in connection with Federal 
lands and installations and Federally-financed or supported 
improvements.
     Directed all agencies responsible for programs 
which entailed land use planning to take flood hazards into 
account when evaluating plans.

          Amendments to Urban Mass Transportation Act of 1964

                 (Public Law 89-562, September 8, 1966)

     Authorized grants to States and local public 
bodies and agencies for the planning, engineering and designing 
of urban mass transportation projects and for other technical 
studies to be included in a program for a unified or officially 
coordinated urban transportation system as a part of the 
comprehensively planned development of the urban area.
     Authorized grants to States, local bodies and 
agencies to provide fellowships for training of personnel 
employed in the urban mass transportation field.
     Authorized grants to public and private nonprofit 
institutions of higher learning to assist in establishing or 
carrying on comprehensive research in the problems of 
transportation in urban areas. Directed the Secretary of HUD to 
undertake a project to prepare a program of research, 
development and demonstration of new systems of urban 
transportation to carry people and goods within metropolitan 
areas speedily, safely, without polluting the air, and in a 
manner that would contribute to sound city planning.

                   Amendments to National Housing Act

                (Public Law 89-566, September 10, 1966)

     Authorized FNMA to issue debentures up to 15 times 
its capital instead of the previous authority of 10 times. 
(This added about $2 billion in new purchasing authority to 
FNMA.)
     Authorized FNMA, under its special assistance 
program, to purchase $1 billion of FHA and VA mortgages with 
principal obligations not exceeding $15,000, except that this 
amount could be increased to $17,500 ($22,500 in Alaska, Guam, 
or Hawaii) in high-cost areas as determined by the Secretary of 
HUD. For this purpose, transferred $500 million from the 
existing FNMA special assistance authority, and provided $500 
million of new authority. Use of the funds was to be limited to 
the purchase of mortgages on new construction.

                     Foreign Assistance Act of 1966

                (Public Law 89-583, September 19, 1966)

     Raised the limit on volume of specific foreign 
housing investment risk guaranties from $5 to $7 billion; 
increased the amount authorized for extended risk guaranties 
from $300 million to $375 million; and earmarked $160 million 
of the total extended risk authority for use solely for housing 
projects.
     Prescribed a minimum rate of interest that the 
Administrator of AID could allow eligible U.S. investors to 
earn on loan investments for housing, and granted authority to 
allow not to exceed 1 percent above the current FHA rate if 
found necessary.
     Raised the ceiling on the total face amount of 
outstanding Latin American housing guaranties from $400 million 
to $450 million. $300 million of this total could be used only 
for pilot or demonstration housing projects.
     Extended the termination date for Latin American 
housing projects guaranty authority from June 30, 1967 to June 
30, 1969.
     Demonstration Cities and Metropolitan Development 
Act of 1966 (Public Law 89-754, November 4, 1966)
Comprehensive City Demonstration Programs
     Authorized HUD to provide grants and technical 
assistance to help communities of all sizes to plan, develop, 
and carry out comprehensive city demonstration programs. These 
were to be locally prepared programs for rebuilding or 
restoring entire sections and neighborhoods of slum and 
blighted areas by the concentrated and coordinated use of all 
available Federal aids together with local, private, and 
governmental resources.
     Authorized grants and technical assistance for 
planning city demonstration programs, to a city demonstration 
agency, which could be a city, county, or any local public 
agency established or designated by the local governing body to 
administer the comprehensive city demonstration program. The 
grants could cover up to 80 percent of the cost of planning and 
developing a program. Authorized $12 million for each of FYs 
1967 and 1968.
     Required the applications for assistance to plan 
demonstration programs to show in broad and general terms the 
nature and seriousness of the city's problems and the outlines 
of what the city proposed to do, and to be approved by the 
local governing body.
     Required a city's demonstration program to be 
designed to (1) renew entire slum neighborhoods by combined use 
of physical and social development programs; (2) increase 
substantially the supply of standard housing of low and 
moderate cost; (3) make marked progress in reducing social and 
educational disadvantages, ill health, underemployment and 
enforced idleness; and (4) contribute toward a well-balanced 
city.
     Made two types of Federal assistance available to 
help finance projects or activities included in approved 
comprehensive city demonstration programs:
          (1) To the extent the projects or activities were 
        eligible for assistance under an existing Federal 
        grant-in-aid program, they would be financed under that 
        program.
          (2) Special grants, supplementing the assistance 
        available under existing grant-in-aid programs, would 
        be provided for the demonstration cities programs. A 
        supplemental grant could be up to 80 percent of the 
        total non-Federal contributions required to be made to 
        all projects or activities assisted by existing Federal 
        grant-in-aid programs which were part of the 
        demonstration cities programs.
     Authorized $400 million for FY 1968 and $500 
million for FY 1969.
     Authorized an additional $250 million in grant 
authority for urban renewal projects which were part of 
approved comprehensive city demonstration programs. (Authority 
to enter into contracts under this program was repealed, 
effective January 1, 1976, by the Housing and Community 
Development Act of 1974, P.L. 93-383, August 22, 1974.)

Planned Metropolitan Development
     As an incentive to coordinated planned 
metropolitan development, authorized HUD to make supplemental 
grants to State and local public bodies and agencies for up to 
20 percent of the cost of projects receiving aid under certain 
specified Federal programs in metropolitan areas where 
development was being carried out in accordance with their own 
metropolitan planning and programming. The additional or 
supplemental grant could not exceed (1) 20 percent of the cost 
of the project for which it was made, nor (2) the grant which 
was being supplemented. In addition, the total Federal 
contributions to a project could not exceed 80 percent.
     Required that after June 30, 1967, all 
applications for Federal assistance for projects for which 
supplemental grants could be provided be submitted to a 
metropolitan or regional planning agency for review. Required 
that it be accompanied by comments of the planning agency 
concerning the extent to which the project was consistent with 
the comprehensive planning developed or in process for the area 
and the extent to which the project contributed to fulfillment 
of the planning.
     Authorized HUD to call upon other Federal agencies 
to cooperate in insuring that all the Federal programs related 
to metropolitan development were carried out in a coordinated 
manner.
     Authorized HUD, upon the request of local 
officials of the central city in any metropolitan area, and 
after consultation with local governmental authorities in the 
area, to appoint a metropolitan expediter for the area. The 
expediter was to provide information, data, and assistance with 
respect to programs and activities conducted in the area by 
HUD, and with respect to other public and private activities 
and needs in the area relating to those programs and 
activities.

FHA Insurance Programs
  New Communities (Title X)
     Broadened the FHA mortgage insurance program for 
land development to permit the financing of ``new communities'' 
with FHA-insured mortgages.
  Insurance for Group Practice Facilities (Title XI)
     Authorized FHA to insure mortgages made by private 
nonprofit corporations to finance the construction or 
rehabilitation of facilities for group practice of medicine, 
optometry or dentistry, particularly in small communities. The 
mortgages could also finance equipment of the facilities. Both 
profit making and nonprofit groups could utilize the 
facilities.
  Veterans
     Made the special mortgage insurance program which 
permitted veterans to purchase homes with FHA-insured mortgages 
and low downpayments available to any veteran without regard to 
whether the veteran had previously received a VA loan or loan 
guarantee.
  New Sales Housing Program for Low-Income Families
     Authorized a limited new FHA mortgage insurance 
program (Section 221(h)) of sales housing for low-income 
families financed with below- market interest rate insured 
mortgages. Made private nonprofit organizations eligible for 
insured mortgages at not more than 3 percent interest to 
finance the purchase and rehabilitation of substandard housing 
(not less than five units) for resale to low-income purchasers.
     Required the purchaser to pay at least $200 down 
which could be applied to closing costs.
  Areas Affected by Civil Disorders
     Authorized FHA to insure housing mortgages under 
its regular Section 203 sales housing program on the basis of 
acceptable risk rather than economic soundness if it was 
determined that the housing was located in an area or areas 
where rioting or other civil disorders had occurred or were 
threatened, and there was a need for low- and moderate-income 
housing in the area.
  Cooperative Housing
     Permitted FHA to insure supplementary loans 
financing improvements and community facilities provided in 
connection with existing FHA-insured cooperative housing, with 
amounts up to 97 percent of the value of the improvements and 
facilities, even though financing to that extent would increase 
the mortgage indebtedness above the original mortgage amount 
(but not above the statutory limits).
  Urban Renewal Housing
     Amended the FHA Section 220 urban renewal housing 
mortgage insurance program by lowering the required 
downpayments on sales housing, extending to the sales housing 
program a special liberalized loan-to-replacement-cost ratio 
for veterans, and increasing the mortgage limitations for small 
projects containing large family dwelling units.
  Section 221 Program for Low- and Moderate-Income and Displaced 
        Families
     Raised the dollar limits on mortgages under the 
FHA 221(d)(2) housing program for low- and moderate-income and 
displaced families.
     Broadened the class of nondwelling facilities 
which could be included in a project in an urban renewal area 
covered by a Section 221 mortgage where the mortgagor waived 
his right to make a profit on any such facilities.
  Land Development
     Raised the limit on the amount of an FHA-insured 
mortgage for land development from $10 to $25 million.
Federal National Mortgage Association
     Authorized FNMA to purchase under its special 
assistance program FHA-insured mortgages financing new 
communities and the below- market Section 221(h) insured 
mortgages on sales housing for low- income families.
     Authorized FNMA to participate (up to 95 percent) 
in making FHA-insured advances during construction on FHA-
insured mortgages financing cooperative housing, nonprofit and 
limited dividend Section 221(d)(3) housing for low-income 
families and Section 220 urban renewal housing.

Urban Renewal
     Required that the redevelopment of an urban 
renewal area, unless it was for predominantly nonresidential 
uses, must provide a substantial number of units of standard 
housing of low and moderate cost and result in marked progress 
in serving the poor and disadvantaged people living in slum and 
blighted areas.
     For the purpose of computing local grants-in-aid 
to an urban renewal project, a publicly owned facility which 
was begun not earlier than three years prior to enactment of 
this Act was to be deemed to benefit an urban renewal project 
to the extent of 25 percent of the total benefits of the 
facility or $3,500,000, whichever is less, if the facility:
          (1) is used by the public for cultural, exhibition, 
        or civic purposes, is a city hall or a public safety 
        building, or is constructed or rehabilitated by a 
        public university and devoted to the treatment of 
        physical or mental disabilities and illness or to 
        medical research;
          (2) is located within, adjacent to, or in the 
        immediate vicinity of the urban renewal project;
          (3) is found to contribute materially to the 
        objectives of the urban renewal plan; and
          (4) is not otherwise eligible as a local grant-in-
        aid.
     Authorized capital grant assistance to be provided 
on a three-fourths (rather than on the usual two-thirds) basis 
to urban renewal projects in areas designated as 
``redevelopment areas'' under the Public Works and Economic 
Development Act of 1965 (P.L. 89-136, August 26, 1965).

Rural Housing
     Authorized loans under Title V of the Housing Act 
of 1949 (P.L. 81-171) for the purchase of newly built homes.
     Permitted the Secretary of Agriculture to accept a 
comaker in the case of any applicant for a rural housing loan 
who is deficient in repayment ability. (Previously comakers 
were permitted only in the case of loans to the elderly.)
     Raised the limit on the amount of a loan, grant, 
or combined loan and grant for repairs and improvements to 
owner-occupied dwellings or farm service buildings from $1,000 
to $1,500. Authorized loans to be made under the rental housing 
program for the elderly for housing for low-income rural 
nonelderly.
     Made cooperative housing eligible for direct or 
insured rural housing loans. (Previously, loans could be made 
to consumer cooperatives but only for rental housing.)
     Made insured rural housing loans available for 
housing for moderate- income nonelderly persons as well as for 
the rural elderly.
     Removed the previous $300 million annual ceiling 
on new loans insured for families with low or moderate incomes 
and substituted an expiration date of October 1, 1969.
     Authorized financial assistance for refinancing of 
rural housing and essential farm service buildings.

Alaska Housing
     Authorized appropriation of $10 million for loans 
and grants to the State of Alaska to assist in the provision of 
housing and related facilities in accordance with a Statewide 
program, for Alaskan Natives and other Alaska residents 
otherwise not able to afford such housing.

Revisions of State Statutes
     Authorized grants to be made under the urban 
planning program to be used to assist in studies and research 
on needed revisions of State statutes which create, govern or 
control local governmental operations.

Urban Information and Technical Services
     Authorized HUD to make matching grants to States 
to help finance programs to provide small communities (less 
than 100,000 population) with information and data on urban 
needs and assistance activities and technical assistance with 
respect to solution of local problems.

Technology
     Authorized HUD to encourage and assist the housing 
industry to reduce the cost and improve the quality of housing 
by the application to housing and urban development of advances 
in technology, and to encourage and assist the application of 
advances in technology to urban development activities.
     Authorized appropriations of $5 million for FY 
1967 and $10 million for FY 1968 for the program, including 
research and studies.

Urban Environmental Studies
     Directed HUD to carry out a comprehensive program 
of studies, surveys, research, and analyses to document and 
define urban environmental factors which must be controlled or 
eliminated, to establish a coordinated system of collecting and 
receiving information and data on urban ecological research and 
evaluations, and evaluating, disseminating, and utilizing 
information and data on urban ecological research.

Housing at or near Military Bases
     Authorized the Secretary of Defense (1) to acquire 
housing situated at or near a military installation which had 
been ordered to be closed where the housing was owned by a 
serviceman or other Federal employee whose employment or 
service was to be terminated by the closing, and (2) as an 
alternative, to make cash payments. (Section 108 of the Housing 
Act of 1965, which this provision replaced, was repealed.)

Preservation of Historic Structures
     Provided that the acquisition and restoration of 
real property within an urban renewal area to promote historic 
and architectural preservation could, where necessary for that 
purpose, be an urban renewal project activity, and that the 
relocation (within or outside a project area) and restoration 
of properties of historic or architectural value would also be 
eligible as urban renewal project activities.
     Authorized local grant-in-aid credit under the 
urban renewal program for assistance provided by a public body 
in relocation and restoration activities related to properties 
of architectural or historic value.
     Authorized HUD to make grants in amounts up to 
$90,000 per structure, to the National Trust for Historic 
Preservation to cover the cost of restoring structures of 
historic or architectural value which the Trust would maintain 
for historic purposes. Authorized appropriations for the 
grants. Authorized HUD to make urban planning grants for 
surveys of historic structures and sites. In addition, 
authorized grants to be made under the open space land and 
urban beautification programs for historic preservation.

                      Disaster Relief Act of 1966

                 (Public Law 89-769, November 6, 1966)

     Authorized HUD to refinance loans when necessary 
because of the loss, destruction or damage to property securing 
the loans as the result of a major disaster. The interest rates 
could be reduced and the maturities extended.
     Made the FHA Section 221 mortgage insurance 
program for displaced low-income families available to disaster 
victims.
     Amended the Consolidated Farmers Home 
Administration Act of 1961 (Title VIII, P.L. 87-70) to permit 
loans or insured loans for the acquisition, construction, 
improvement, replacement, or extension of waste disposal 
systems and other public facilities to associations, public, 
quasi-public, and nonprofit corporations providing community 
services in rural areas when the services were needed to 
rebuild a community. Authorized 50 percent construction grants 
for waste disposal systems, water systems, and other public 
facilities if the user charges to repay a loan would need to be 
beyond the ability of the majority of the users to pay, and if 
these charges would be above average for comparable communities 
in the State.
     Required priority to be given to disaster areas 
making application for assistance under the public facilities 
loan programs and public housing programs of the Department of 
HUD.

      Correcting Amendments of Housing and Urban Development Laws

                    (Public Law 90-19, May 25, 1967)

     Amended the various housing and urban development 
laws to correct references and provisions made obsolete by the 
creation of the Department of Housing and Urban Development.

  Amendments to Appalachian Regional Development Act and Public Works 
                            Development Act

                 (Public Law 90-103, October 11, 1967)

Title I. Amendments to Appalachian Regional Development Act of 1965 
        (P.L. 89-4)
     Authorized HUD to make grants and loans to 
nonprofit, limited dividend or cooperative organizations, or to 
public bodies for the expenses of planning and of obtaining an 
insured mortgage for a housing construction or rehabilitation 
project under the FHA Section 221 program for low-income 
families in any area of the Appalachian Region determined to 
have significant potential for future growth.
     Established the Appalachian revolving housing fund 
and authorized $5 million to be appropriated for the purpose of 
the program.
     Projects were to be submitted by the States and 
approved by the Appalachian Regional Commission.
     Authorized $6 million for grants for the FYs 1968 
and 1969 for construction of sewage treatment facilities in the 
Appalachian area.
     Made comprehensive planning local development 
districts eligible for comprehensive planning grants by HUD.
     To increase the Federal contribution to projects 
in the area under Federal grant-in-aid programs, authorized 
supplemental grants to be made for the construction or 
equipment of facilities and the acquisition of land.

Title II--Amendments to the Public Works and Economic Development Act 
        of 1965 (P.L. 89- 136)
     Permitted supplemental Federal grants-in-aid in 
economic development regions established under that Act to 
increase the Federal contributions to Federally-aided 
construction or equipment of facilities,or the acquisition of 
land.

  Substantive Provisions in Department of HUD Appropriation Act, 1968

                 (Public Law 90-121, November 3, 1967)

     Open space grants could not exceed 50 percent of 
eligible cost.
     No funds in the appropriation act could be used 
for metropolitan expediters authorized in Section 203 of the 
Demonstration Cities and Metropolitan Development Act of 1966 
(P.L. 89-754, November 4, 1966).
     No funds in the appropriation act could be used 
for the implementation or administration of Section 204 of the 
act cited above. (These three provisos continued in 
appropriation acts through FY year 1971.)

              Amendments to Foreign Assistance Act of 1965

                 (Public Law 90-137, November 14, 967)

     Raised the ceiling on extended risk coverage under 
the program for guarantees of American investment in developing 
countries to $475 million for other than housing projects, and 
the ceiling on guarantees of investment in housing to $315 
million.

              Presidential Announcement, December 6, 1967

     Announced an intention to form an Institute for 
Urban Development, objectives of which were:
          (1) to build a continuing analytical capacity to 
        study complex urban problems as a whole, including 
        their relationship to Federal, State, and local 
        institutions, organizations, policies and programs;
          (2) to get necessary data and conduct long-range 
        studies based on the data;
          (3) to bring together a wide variety of disciplines, 
        for example, architects, administrators, builders, 
        scientists, economists, social organizations and city 
        planners; and
          (4) to provide an independent and objective review 
        and evaluation of the nation's urban problems and 
        programs.

             Amendments to Economic Opportunity Act of 1964

                 (Public Law 90-222, December 23, 1967)

     Directed HUD to take all necessary steps under the 
urban renewal program to assure that land for business location 
and expansion purposes was made available for ``special impact 
programs'' directed to the solution of critical problems in 
urban areas having especially large concentrations of low-
income persons.
     Directed each community action agency to encourage 
the establishment of housing development and service 
organizations designed to focus on the housing needs of low-
income families and individuals. Directed the organizations to 
provide the technical, administrative, and financial assistance 
required to help those persons to utilize existing programs and 
to enable sponsors to take advantage of existing mortgage 
insurance and housing assistance programs. Where appropriate, 
the organizations could be nonprofit housing development 
corporations. The corporations could themselves become sponsors 
of housing under existing housing program. They were required 
to coordinate their programs with other community action 
programs.

              Coordination of Federal Regional Activities

               (Executive Order 11386, December 28, 1967)

     Prescribed arrangements for coordination of the 
activities of regional commissions and activities of the 
Federal Government relating to regional economic development.
     Established the Federal Advisory Council on 
Regional Economic Development, with the Secretary of HUD a 
member.

                Presidential State of the Union Message

                   (H. Doc. 90-211, January 17, 1968)

     Proposed for the consideration of Congress a 10-
year campaign to build six million new housings units for low- 
and middle-income families.

                      Presidential Budget Message

                   (H. Doc. 90-225, January 29, 1968)

     Repeated the recommendation for a program to 
produce six million housing units for low- and middle-income 
families over a 10-year period.
     Requested administrative authority to lift the FHA 
and VA interest rate ceilings.
     Proposed orderly transfer of ownership of the 
government's secondary market activities into private hands.

                          Presidential Message

                  (H. Doc. 90-262, February 26, 1968)

     Proposed a national goal of producing 26 million 
units over a 10-year period, including six million for 
replacement of substandard housing.
    Made a number of substantive new recommendations, 
including:
     Interest subsidy programs, with the government 
paying the cost of mortgage interest in excess of one percent 
(to the extent necessary) to provide home ownership or repairs 
reasonably within the means of the poor, the elderly, the 
handicapped, the displaced, and moderate-income families; and 
similarly, to provide rental housing for low- and moderate- 
income families;
     Legislation to transfer the secondary market 
functions of FNMA to private ownership and management;
     Authorization of a new form of obligation to be 
backed by Federally-insured or guaranteed mortgages, intended 
to attract funds from retirement and trust funds and similar 
sources of capital not ordinarily available for housing 
mortgages;
     Establishment of a national housing partnership 
(as proposed by the Kaiser Commission) to encourage private 
housing undertakings through pooling of risks and various tax 
advantages;
     Provision of technical assistance to non-profit 
sponsors active in Federally-assisted housing programs;
     Grants for improved tenant services in low-rent 
public housing;
     Initiation of a Federal system of reinsurance 
against the risks of civil disorders, to encourage availability 
of private insurance against such risks (commonly called ``riot 
insurance'');
     A program of incentive grants to stimulate 
comprehensive planning in connection with Federally- assisted 
local public works projects; and
     Transfer (by Presidential Reorganization Plan) of 
the program of grants and loans for urban mass transportation 
from HUD to the Department of Transportation.

                    Presidential Reorganization Plan

                 (House Doc. 90-262, February 26, 1968)

     Proposed reorganization, which would have the 
effect of transferring to a new Urban Mass Transportation 
Administration in the Department of Transportation the 
functions of HUD relating to mass transportation project 
assistance through loans and grants and related development 
activities.
     Proposed to leave with HUD responsibility for 
certain enumerated research and comprehensive planning 
functions having significant impact on urban development.

                        Civil Rights Act of 1968

                  (Public Law 90-284, April 11, 1968)

     Made it unlawful (1) to refuse to sell or rent or 
make unavailable or deny a dwelling to any person because of 
race, color, religion, or national origin, and (2) to 
discriminate against any person in the sale or rental of a 
dwelling, or in the provision of services or facilities in 
connection therewith because of race, color, religion, or 
national origin.
     Made it unlawful for any bank, building and loan 
association, insurance company, or other corporation, 
association, firm or enterprise whose business consisted of 
making real estate loans to deny a loan or other financial 
assistance for the purchase, construction, improvement, repair 
or maintenance of a dwelling because of the race, color, 
religion, or national origin of the borrower or persons with 
whom he was associated.
     Made HUD responsible for administering the Fair 
Housing provisions, and provided an additional Assistant 
Secretary.
     Included criminal provisions to prevent 
intimidation in Fair Housing cases and with respect to riots 
and civil disorders.

                   Amendments to National Housing Act

                    (Public Law 90-301, May 7, 1968)

     Authorized HUD, in consultation with the Veterans 
Administration, to set the maximum interest rates for the FHA 
mortgage insurance programs on sales housing at such rates as 
it found necessary to meet the mortgage market.
     Raised the statutory maximum interest rate for the 
FHA Section 207 rental housing program, Section 213 cooperative 
housing program, the Section 231 program for housing for the 
elderly or handicapped, and the Section 214 program for 
condominiums to 6 percent.
     Established the Commission to Study Mortgage 
Interest Rates. Membership included representatives of the 
House and Senate Committees on Banking and Currency, and 
Veterans Affairs, and appointees by the President and the 
Speaker of the House and the President of the Senate. The 
Secretary of HUD was to designate the Executive Director of the 
Commission. (Report was issued August 13, 1969)

                          Truth in Lending Act

                   (Public Law 90-321, May 29, 1968)

     Required full disclosure of the terms and 
conditions of finance charges in credit transactions or in 
offers to extend credit, including home mortgages and repair or 
modernization loans.

                  Urban Mass Transportation Functions

           (Reorganization Plan No. 2 of 1968, June 30, 1968)

     Transferred to the Secretary of Transportation 
certain urban mass transportation functions of the Secretary of 
Housing and Urban Development, and established within the 
Department of Transportation the Urban Mass Transportation 
Administration.

               Housing and Urban Development Act of 1968

                  (Public Law 90-448, August 1, 1968)

Declaration of Policy
     Affirmed the national goal of ``a decent home and 
a suitable living environment for every American family'' and 
stated that there should be the fullest practicable 
utilization, in the Federal housing programs, of private 
enterprise and self-help techniques.
Housing for Lower-Income Families
  Homeownership: Sections 235 and 221(h)
     Established the Section 235 program (of the 
National Housing Act) to provide Federal assistance to 
homeownership by lower-income families. Under the program, HUD 
could enter into contracts with lenders who make FHA-insured 
home mortgage loans to these families, to make periodic 
payments to the lenders in the amount necessary to make up the 
difference between 20 percent of the family's monthly income 
and the required monthly payment under the mortgage for 
principal, interest, taxes, insurance, and mortgage insurance 
premium. In no case, however, could the payment on a mortgage 
exceed the difference between the required payment under the 
mortgage for principal, interest, and mortgage insurance 
premium and the payment that would be required if the mortgage 
bore an interest rate of 1 percent.
     Made the assistance payment available for a 
purchaser having an income, at the time of his initial 
occupancy, not in excess of 135 percent of the maximum income 
limits that could be established in the area for initial 
occupancy in public housing. However, up to 20 percent of the 
funds authorized in appropriation acts for the program could be 
used to assist families with incomes above these limits, but 
not in excess of 90 percent of the income limits for occupancy 
in a Section 221(d)(3) below-market interest rate housing 
project. Required income to be recertified at least every two 
years and appropriate adjustments made in the assistance 
payment to reflect any changes.
     Limited the amount of a home mortgage to $15,000 
($17,500 in high cost areas), or $17,500 ($20,000 in high cost 
areas) for families with five or more members.
     Established the minimum downpayment at $200 or its 
equivalent in labor for families with income up to 135 percent 
of maximum limits in the area for initial occupancy in public 
housing, and 3 percent of acquisition cost in other cases. The 
downpayment could be applied to closing costs.
     Required that the housing be new or substantially 
rehabilitated, except that up to 25 percent of the amount of 
contracts authorized to be made before July 1, 1969, could 
apply to existing housing, with this percentage decreasing to 
15 percent the following year, and 10 percent the third year.
     Authorized contracts for assistance payments, 
subject to approval in appropriation acts, of up to $75 million 
annually prior to July 1, 1969. Increased this amount by $100 
million on July 1, 1969, and by $125 million on July 1, 1970. A 
reasonable portion of the authority was to be transferred to 
the Secretary of Agriculture for use in rural areas and small 
towns. Made the Section 235 program available for the purchase 
(and rehabilitation if necessary) by a nonprofit organization 
or a public body or agency of housing in viable, or potentially 
viable, areas for resale to lower-income families, also with a 
Section 235 mortgage. Required the housing to include at least 
four or more dwelling units (or be two-family dwellings, one 
unit of which was to be occupied by the owner), or at least 
four or more one-family units in a condominium, in the cases 
where rehabilitation was involved. Authorized HUD to provide 
counseling services to purchasers of homes with Section 235 
mortgages.
     Modified the Section 221(h) program to allow home 
purchasers to finance their purchase with mortgages bearing 
interest rates as low as 1 percent where the purchaser's income 
justified, with periodic adjustments between 1 and 3 percent to 
reflect changes in the homeowner's income. Increased the limit 
on the aggregate amount of mortgages that could be insured and 
outstanding at any one time under the program from $20 million 
to $50 million.
  Special Mortgage Insurance Assistance
     Added Section 237 to the National Housing Act to 
authorize FHA insurance of mortgages for families of low and 
moderate income who, through the incentive of homeownership, 
and counseling assistance, appear to be able to achieve 
homeownership but who, for reasons of credit history, irregular 
income patterns caused by seasonal employment, or other 
factors, are unable to meet the credit requirements generally 
applicable for the purchase of a home under the regular FHA 
mortgage insurance program.
     Required that a Section 237 mortgage meet the 
basic requirements under one of the various FHA home mortgage 
programs, except as to the credit and income requirements. The 
principal obligation of the mortgage could not exceed $15,000 
($17,500 in high-cost areas). However, if the limit on the 
amount of a mortgage was lower under a particular program, the 
lower limit was made applicable.
     Limited the monthly payments, combined with local 
real estate taxes on the property, to 25 percent of the home 
purchaser's income, computed over the previous year or the 
previous three years, whichever was higher. Limited the 
aggregate outstanding balance of mortgages insured under the 
Section 237 program to $200 million at any one time.
  Older Neighborhoods
     Authorized mortgage insurance under any of FHA's 
mortgage insurance programs, for the purchase, repair, 
rehabilitation, or construction of housing located in older 
declining urban areas without regard to the normal requirements 
of the particular program if FHA finds that (1) the area is 
reasonably viable, giving consideration to the need for 
providing adequate housing for families of low and moderate 
incomes in the area, and (2) the property is an acceptable risk 
in view of this consideration.
  Conversion of Certain Rental Projects
     Permitted rental housing projects financed with 
below-market interest rate FHA 221(d)(3) mortgages to be 
converted to cooperative or condominium ownership, with sale of 
units to low- or moderate-income purchasers at a price not in 
excess of the appraised value of the property and with a 
mortgage bearing the below-market interest rate then in effect. 
Required at least a 3 percent downpayment for purchase in a 
condominium, which could be applied in whole or in part toward 
closing costs.
  Technical Assistance for Nonprofit Organizations
     Authorized HUD to provide to nonprofit 
organizations technical assistance with respect to the 
construction, rehabilitation, and operation of low- and 
moderate-income housing, and to make 80 percent, interest-free 
loans to such sponsors to cover certain preconstruction costs 
under Federally-assisted programs. Established the low- and 
moderate-income sponsor fund as a revolving fund for these 
loans with an authorization for appropriations of $7.5 million 
for FY 1969 and $10 million for FY 1970.
  National Homeownership Foundation
     Created the National Homeownership Foundation to 
carry out a continuing program of encouraging private and 
public organizations to provide increased homeownership and 
housing opportunities in urban and rural areas for lower-income 
families.
     Authorized the Foundation to make grants and loans 
(not otherwise available from Federal sources) to help defray 
organizational and administrative expenses, necessary 
preconstruction costs, and the cost of counselling or similar 
services to lower-income families for whom housing was to be 
provided. The Foundation could also provide technical 
assistance to the organizations.
     Authorized appropriation for the Foundation of up 
to $10 million and the use of donated funds.
  Special Risk Insurance Fund
     Established a new special risk insurance fund 
(under Section 238 of the National Housing Act) which was not 
intended to be actuarially sound and out of which claims were 
to be paid on mortgages insured under the new special mortgage 
insurance programs for low- or moderate-income families. 
Authorized appropriations to cover any losses sustained by the 
new fund.
  New Technology (Operation Breakthrough)
     Directed HUD to institute a program under which 
public and private organizations submit plans for the 
development of housing for lower- income families, using new 
and advanced technologies, on Federal land made available for 
that purpose, or on other suitable land. Five plans from among 
those submitted were to be selected.
     Directed HUD to seek to achieve the construction 
of at least 1,000 dwellings units a year over a five-year 
period for each of the various types of technologies proposed 
in the approved plans. Required HUD to report at the earliest 
practicable date with respect to the projects assisted, 
together with recommendations.
     Authorized insurance of mortgages financing the 
projects under the FHA experimental housing program (Section 
233 of the National Housing Act).
  Study of Insurance Protection for Homeowners
     Authorized HUD, in cooperation with the private 
insurance industry, to develop a plan for establishing an 
insurance program to enable homeowners to meet their monthly 
mortgage payments in times of personal economic adversity. 
Required HUD to report within six months following enactment of 
the Act.
  National Advisory Commission on Low-Income Housing
     The National Advisory Commission on Low-Income 
Housing was established to undertake a comprehensive study and 
investigate the resources and capabilities in the public and 
private sectors of the economy which may be used to fulfill 
more completely the objectives of the national goal of a 
``decent home and suitable living environment for every 
American family.'' An interim report was required by July 1, 
1969, and a final report by July 1, 1970.
Rental Housing for Lower-Income Families
  Part A--Private Housing: Section 236
     Authorized the Section 236 program of Federal 
assistance to rental and cooperative housing for lower-income 
families. Under this program periodic payments were to be made 
to the mortgagee to reduce the rents required by interest costs 
on a market- rate FHA-insured project mortgage. Payments could 
be enough to reduce payments on the project mortgage from that 
required for principal, interest and mortgage insurance premium 
on a market-rate mortgage to that required for principal and 
interest on a mortgage bearing an interest rate of 1 percent.
     These payments were designed to reduce rentals to 
a basic charge; a tenant or cooperative member would either pay 
the basic charge or such greater amount as represented 25 
percent of his income, but not more than the charges which 
would be necessary without any interest-reduction payments. 
Rental charges collected by the project owner in excess of the 
basic charges were to be returned to the Secretary for deposit 
in a revolving fund to offset payments made to the mortgagee 
and to make other interest-reduction payments.
     Made eligible for residence, families with 
incomes, at the time of the initial rent-up of the projects, 
not in excess of 135 percent of the maximum limits that could 
be established in the area for initial occupancy in public 
housing. However, up to 20 percent of the contract funds 
authorized in appropriation acts could be made available for 
projects in which some or all of the units would be occupied, 
at the time of the initial rent-up, by tenants whose incomes 
exceeded the above limit but did not exceed 90 percent of the 
income limits for occupancy of Section 221(d)(3) below-market 
interest rate rental housing. Made eligible for mortgage 
insurance under the Section 236 program, a mortgagor which was 
a nonprofit organization, a cooperative, or a limited-dividend 
entity of the types permitted under the FHA Section 221(d)(3) 
rental housing program.
     Interest-reduction payments could be made with 
respect to State-aided rental housing projects approved for 
receiving the benefits of the program prior to completion of 
construction or rehabilitation of the projects.
     Authorized contracts for assistance payments, 
subject to approval in appropriation acts, in amount of $75 
million annually prior to July 1, 1969, increased by $100 
million on July 1, 1969, and by $125 million on July 1, 1970. A 
reasonable portion of the authority was to be transferred to 
the Secretary of Agriculture for use in rural areas and small 
towns.
     Authorized rent supplement payments for tenants in 
Section 236 projects, for not more than 20 percent of the units 
in any one project. Made State-aided projects eligible for rent 
supplements if the projects were approved for this benefit 
prior to completion of construction or rehabilitation.
     Increased the authority for rent supplement 
contracts (subject to approval in appropriation acts) by $40 
million on July 1, 1969, and by $100 million on July 1, 1970.
  Part B--Low-Rent Public Housing
     Authorized HUD to make grants to local housing 
authorities to assist in financing tenant services for tenants 
of public housing. Authorized appropriations for the grants up 
to $15 million for fiscal year 1969, and $30 million for fiscal 
1970.
     Permitted public housing assistance for Indian 
families who live on or adjacent to their farmland. Prohibited 
high-rise public housing projects for families with children, 
except where HUD determined that there was no practical 
alternative.
     Prohibited HUD from prescribing limitations on the 
types or categories of structures or dwelling units (other than 
those provided in the law) which can be leased for public 
housing under the Section 23 leasing program. Authorized an 
additional $120 annual subsidy for public housing units 
occupied by large families or families with very-low income. 
Permitted local housing authorities to purchase structures 
leased under the Section 23 program for the purpose of 
reselling the structure to the tenants, or to a group of 
tenants occupying units aggregating in value at least 80 
percent of the structure's value.

Changes in FHA Insurance Programs
     Authorized FHA to:
    --insure loans to homeowners to finance the purchase of fee 
simple title to property on which their homes were located 
where the homeowner had only a leasehold interest in the land;
    --insure 90 percent supplemental loans to finance 
improvements and additions to FHA multifamily projects 
(including nursing homes and group practice facilities);
    --insure supplementary rehabilitation loans to housing 
cooperatives which purchased war housing covered by an 
uninsured mortgage;
    --permit the cost of nursing home equipment to be included 
in an insured nursing home mortgage;
    --insure mortgages on new seasonal homes.
     Changed FHA Title I home improvement loan 
insurance program by:
    --raising the limit on the amount of a loan from $3,500 to 
$5,000;
    --extending the maximum maturity from five years and 32 
days to seven years and 32 days;
    --increasing the maximum financing charge to $5.50 discount 
per $100 of the first $2,500 plus $4.50 in excess of $2,500 
(previously $5 and $4, respectively).
     Authorized insurance of mortgages financing the 
purchase of housing rehabilitated by local public agencies in 
urban renewal areas under the Sections 220 and 221(d)(3) 
programs as well as under the new Section 236 program.
     Increased the maximum mortgage amount under the 
Section 203(i) program for homes in outlying semirural and 
rural areas from $12,500 to $13,500.

Title IV--New Communities Act of 1968
     Authorized HUD to guarantee obligations issued by 
private developers to help finance the land acquisition and 
land development costs of new communities. (Authority to make 
such guarantees was ended by Title VII of the Urban Growth and 
New Community Development Act of 1970, P.L. 91-609, December 
31, 1970.)
     Limited the obligations guaranteed for a new 
community to the lesser of (a) 80 percent of the Secretary's 
estimate of the value of the property upon completion of the 
land development, or (b) the sum of 75 percent of the 
Secretary's estimate of the value of the land before 
development plus 90 percent of his estimate of the actual cost 
of the land development, or (c) $50 million outstanding.
     Limited the aggregate amount of outstanding 
principal obligations guaranteed to $250 million.
     Authorized HUD to establish a revolving fund for 
the guarantee program comprised of (1) receipts from fees and 
charges, (2) other receipts, and (3) such sums, authorized to 
be appropriated, as may be required.
     Authorized HUD to make supplementary grants to 
State and local public bodies and agencies for water and sewer 
facilities and open space assisted by grants under the Housing 
and Urban Development Act of 1965 (P.L. 89-117), or the 
Consolidated Farmers' Home Administration Act, and the Housing 
Act of 1961 (P.L. 87-70).
     Limited the supplementary grant to 20 percent of 
the cost of the facility and the total Federal grant to 80 
percent of facility cost.
     Authorized appropriations for supplementary grants 
of up to $5 million for fiscal year 1969, and up to $25 million 
for fiscal year 1970.
    (Title IV was required to be phased out by Title VII of the 
Housing and Urban Development Act of 1970, P.L. 91-609, 
December 31, 1970.)

Title V--Urban Renewal
  Neighborhood Development Program (NDP)
     Authorized HUD to provide financial assistance for 
neighborhood development programs, i.e., urban renewal project 
undertakings and activities in one or more urban renewal areas 
planned and carried out on the basis of annual increments.
     Based financing on the amount of loan and grant 
funds needed to carry out the activities planned during a 12-
month period in each of the urban renewal areas contained in a 
community's program. If funds were available and a community's 
program was acceptable to the Secretary, a community could 
receive financial assistance based on its need for subsequent 
annual increments of the program.
  Rehabilitation Grants
     Increased the limit on the amount of a 
rehabilitation grant to a low-income homeowner from $1,500 to 
$3,000, and made the grant available for rehabilitation of real 
property in addition to the dwelling itself.
     Authorized HUD to make rehabilitation grants to 
low-income homeowners whose property had been determined, after 
inspection, to be uninsurable because of physical hazards. 
Authorized the grant to be made only to rehabilitate the 
property to the extent necessary to make it meet reasonable 
underwriting standards imposed by a statewide property 
insurance plan.
     Authorized rehabilitation grants to be made to 
low-income homeowners for repairs and improvements of dwellings 
in urban renewal and code enforcement areas under certain 
circumstances.
  Rehabilitation Loans
     Broadened the rehabilitation loan program in the 
same manner as the rehabilitation grant program with respect to 
properties located outside urban renewal and code enforcement 
areas and those found to be uninsurable.
     Limited the eligibility for residential 
rehabilitation loans to persons whose annual income was within 
the local limits for the Section 221(d)(3) below-market 
interest rate program.
  Open-Land Projects
     Authorized grants for open-land urban renewal 
projects where the land was to be disposed of for low- and 
moderate-income housing. (Previously, open-land projects were 
not eligible for grants.) The grant may be for two-thirds of 
the difference between the proceeds from any land disposed of 
at its value for low- or moderate- income housing and the 
proceeds which would have been realized if the land had been 
disposed of at its fair value without regard to its special 
use.
  Demolition Grants
     Expanded the demolition grant program to permit 
grants for the demolition of structures which were rat 
harborages or potential rat harborages.
  Air Rights
     Authorized air rights urban renewal projects, and 
the construction of necessary foundations and platforms in any 
type project, for the development of educational facilities.
  Low- and Moderate-Income Housing
     Provided that a majority of the housing units 
provided in all of the approved urban renewal projects in any 
community which were to be redeveloped for predominately 
residential uses and which received Federal recognition after 
August 1, 1968, must be for low- and moderate-income families 
or individuals, with at least 20 percent of such total for low-
income families or individuals.
  Interim Assistance
     Authorized HUD to contract to make grants 
aggregating up to $15 million a year to cities or counties to 
assist them in taking interim steps to alleviate harmful 
conditions in slum or blighted areas of communities which were 
planned for substantial clearance, rehabilitation, or 
Federally-assisted code enforcement in the near future, but 
which needed some immediate public action until permanent 
action could be taken. The grant could not exceed two-thirds of 
the cost of planning and carrying out an interim assistance 
program, except that three-fourths grants could be made to a 
community with a population of 50,000 or less.
  Relocation Payments
     Broadened relocation adjustment payments to permit 
payments of up to $500 per year, for a two-year period, 
previously limited to $500 based on a one-year period.
     Authorized a new payment to enable a displaced 
owner-occupant of residential property to purchase a 
replacement dwelling equal to the difference between the 
average price for an adequate replacement home and the 
acquisition price of the former home.
  Other Urban Renewal Amendments
     Removed the previous limits on the acquisition and 
rehabilitation of residential properties by local renewal 
agencies.
     Authorized leasing land in an urban renewal area 
(in addition to being sold as previously provided) for low- or 
moderate-income housing at a price consistent with the use for 
that purpose. (This permitted land to be available to builders 
at the write- down price for housing assisted under the new 
interest-reduction payment programs.)

Title VI--Urban Planning and Facilities
  Planning Grants
     Revised the Section 701 planning assistance grant 
program in the following ways.
     Authorized grants to be made to State planning 
agencies for assistance to ``district'' planning agencies for 
rural and other nonmetropolitan areas; to Indian tribal 
planning councils; to regional and district councils of 
government; to regional commissions and economic development 
districts established under the Public Works and Economic 
Development Act of 1965 (P.L. 89-136); to cities, without 
regard to population, within metropolitan areas for planning 
which is part of metropolitan planning; and to official 
government planning agencies for areas where rapid urbanization 
is expected as a result of a new community assisted under the 
Act.
     Broadened the definition of comprehensive planning 
to include planning for the provision of governmental services 
and for the development and utilization of human and natural 
resources. Required the inclusion of a housing element as part 
of the preparation of comprehensive land-use plans. Increased 
the authorization of appropriations for grants by $35 million 
for fiscal 1969 and by $125 million beginning FY 1970. Provided 
that an additional $10 million of Section 701 appropriations 
was to be available for study, research, and demonstration 
projects.
     Authorized supplementary grants for Federally-
assisted projects in all multi- jurisdictional areas 
(previously limited to metropolitan areas), such as the rural 
planning districts proposed to be assisted with comprehensive 
planning grants.
  Revisions in Advance Acquisition of Land Program
     Broadened the definition of eligible land from 
land planned to be utilized ``in connection with the future 
construction of public works and facilities'' to land planned 
to be utilized in the future for ``public purposes.''
     Authorized grants to be made for the imputed 
interest cost when a public body did not use borrowed funds to 
acquire the land. Authorized HUD to extend the requirement that 
the land must be used for its proposed purpose within five 
years, if it deemed a longer period necessary due to unusual 
circumstances.
     Provided that assistance under the program would 
not render a project ineligible for other Federal assistance 
programs and that the cost of land acquired with assistance 
under the advance acquisition program would not be an 
ineligible project cost in such other programs.

Urban Mass Transportation
     Amended the definition of ``mass transportation'' 
in the Urban Mass Transportation Act of 1964 (P.L. 88-365) to 
allow greater flexibility and opportunity for application of 
new concepts and systems.
     Provided that not more than half of the non-
Federal share of the net project cost of a mass transportation 
project receiving Federal grants could be paid from private 
sources, except in certain cases of demonstrated fiscal 
inability. Required that any public or private transit system 
funds provided for the non-Federal share be solely from 
undistributed cash surpluses, replacement or depreciation funds 
or reserves available in cash, or new capital.

Title VIII--Secondary Mortgage Market
     Partitioned the existing Federal National Mortgage 
Association into two separate corporations, a government-
sponsored private corporation, to be known as the Federal 
National Mortgage Association (FNMA) to conduct the secondary 
mortgage market operations assigned to the previous FNMA, and a 
wholly-owned government corporation, the Government National 
Mortgage Association (GNMA). Made provision for a period and 
process of transition of FNMA from public to private ownership, 
and for the repayment of capital stock held by the Treasury.

FNMA
     Provided that the new FNMA be headed by a Board of 
Directors, whose composition and method of appointment or 
election were provided for. Made the new FNMA subject to 
general regulatory control of the Secretary of HUD, who had to 
approve the issuance of all stocks and other obligations by 
FNMA and who could require it to allocate a reasonable portion 
of its mortgage purchases to mortgages on low- and moderate-
income housing.
     Authorized FNMA to sell securities backed by a 
portion of its mortgage portfolio, with FNMA guaranteeing 
payment on such securities.

GNMA
     Provided that GNMA operate the special assistance 
functions for Federally-aided housing programs, and the 
management and liquidating functions of the old FNMA.
     Authorized GNMA to guarantee mortgage-backed 
securities issued by private issuers other than FNMA, where 
they were backed by FHA, VA, and some Farmers Home 
Administration mortgages or loans.

Title IX--National Housing Partnerships
     Directed that a national housing partnership be 
created for the purpose of securing the participation of 
private investors in programs and projects to provide housing 
for low- and moderate-income families.
     Authorized the national partnership to form 
partnership ventures with local investors for the purpose of 
building low- and moderate-income housing projects throughout 
the Nation. Authorized the President to create additional 
partnerships when he determines it to be in the national 
interest.
     Authorized national banks to invest in entities 
formed under these provisions of the Act.

Rural Housing
     Authorized the Secretary of Agriculture to provide 
housing, under the new interest- reduction programs authorized 
for HUD by the Act, in rural areas.
     Authorized Farmers Home Administration (FmHA) to 
provide advances and technical assistance to the provision of 
housing and related facilities in rural areas for rural 
trainees (and their families) enrolled in Federally-assisted 
training courses to improve their employment capability.
     Authorized a new program of grants and loans to 
provide assistance in rural areas and small towns to low-income 
individuals and families for mutual or self-help housing.
     Authorized a self-help housing land development 
fund to provide a source of short- term loans to public or 
private nonprofit organizations to buy and develop building 
sites to be sold to families, nonprofit organizations, and 
cooperatives eligible for assistance under the new interest-
reduction programs for housing for lower-income families.
Title XI--Urban Property Protection and Reinsurance Act of 1968
     Authorized HUD to provide private insurers with 
reinsurance against losses resulting from riots or civil 
disorders.
     Limited the sale of reinsurance to those insurers 
that cooperate with State insurance authorities in Statewide 
plans, to assure fair access to insurance requirements, called 
FAIR plans, and reinsurance could be provided only in States 
which have such plans.
     Required that premium rates and the terms and 
conditions of reinsurance contracts be uniform throughout the 
country. The premiums for the first year were to provide 
sufficient income to cover a level of riot losses in excess of 
the amount of insured riot losses in 1967.
     Required that a State assume a portion of the 
losses reinsured by the Secretary within one year or by the 
close of its next regular legislative session. Made the ceiling 
on the share 5 percent of the property insurance premiums 
earned in the State on reinsured lines of property insurance, 
if reinsured losses exceeded premiums paid for reinsurance by 
insurance companies in a State.
     Created a national insurance development fund to 
carry out the authorized programs. Authorized Treasury 
borrowings to make payments of claims for reinsured losses if 
required, limited to $250 million or such further sums as the 
Congress might authorize by joint resolution.
     Required HUD to make a study concerning the 
availability of property insurance in urban areas and report to 
the President and the Congress in one year Authorized other 
studies pertinent to its reinsurance and Statewide plan 
responsibilities.

Title XIII--National Flood Insurance Act of 1968
     Authorized HUD to establish and carry out a 
national flood insurance program to enable persons to purchase 
insurance against losses resulting from physical damage to or 
loss of real property or personal property arising from any 
flood occurring in the U.S. Directed HUD to encourage and 
arrange for maximum participation in the program by insurance 
companies and other insurers, and by related agents, brokers, 
and organizations.
     The private insurance industry was expected to 
participate in the operation of the flood insurance program on 
a risk-sharing basis. However, as an alternative, authorized 
HUD if necessary, to operate the program without such 
participation on other than a fiscal agency basis.
     Authorized HUD to borrow up to $250 million from 
the Treasury to carry out the insurance program.
     Established a national flood insurance fund for 
making payments authorized by the bill, including premium 
equalization payments and reinsurance for losses in excess of 
losses assumed by insurance company pools formed to provide 
flood insurance.
     Directed HUD to develop criteria designed to 
encourage the adoption of State and local measures to restrict 
the development of land which is exposed to flood damage, guide 
development of proposed construction away from locations 
threatened by flood hazards, assist in reducing damage caused 
by floods, and otherwise improve land management and use of 
flood prone areas. Provided that after June 30, 1970, no new 
flood insurance coverage could be provided in any areas unless 
an appropriate public body had adopted land use and control 
measures.
     Established limits on amount of coverage and 
limited the face amount of flood insurance coverage outstanding 
and in force at any one time to $2.5 billion.
     Authorized the Secretary to study the extent to 
which insurance protection is not available against earthquakes 
or other natural disaster perils, and the feasibility of such 
insurance protection being made available.

Title XIV--The Interstate Land Sales Full Disclosure Act
     Made it unlawful for any developer to sell or 
lease, by the use of the mail or by any means in interstate 
commerce, any lot in any subdivision (defined as one with 50 or 
more lots for sale as part of a common promotional plan) 
unless:
          a. There has been filed with HUD a statement of 
        record listing certain required information about the 
        ownership of the land, the state of its title, its 
        physical nature, the availability of roads and 
        utilities, and other matters; and
          b. A printed property report, containing pertinent 
        extracts from the statement of record, is furnished to 
        the purchaser in advance of the signing of an agreement 
        for purchase or lease.
     Provided that these requirements not apply to any 
subdivision where the property was clear of all liens and if 
every purchaser had personally inspected the lot which he 
purchased, as evidenced by a written affirmation by the 
developer.

Title XV--FHA Mortgage Insurance for Nonprofit Hospitals
     Authorized FHA insurance for mortgages covering 
new or rehabilitated hospitals (including initial equipment).
     Limited the amount of a mortgage to $25 million or 
90 percent of replacement cost, and the hospital must be owned 
and operated by one or more nonprofit organizations. Made 
eligible recently completed hospitals not yet permanently 
financed, subject to a limit of $20 million on the aggregate of 
such mortgages.

Title XVI--Housing Goals and Housing Reports
     Found that the supply of the Nation's housing was 
not increasing rapidly enough to meet the national housing goal 
and reaffirmed the goal.
     Required the President, not later than January 15, 
1969, to report to the Congress a plan to be carried out over 
the next 10 years for the elimination of all substandard 
housing and the realization of the national housing goal.
     Required the President on January 15, 1970, and on 
each succeeding year through 1979, to submit to the Congress a 
report of results achieved in the provision of housing and 
recommendations for actions that may be needed.
     Made available funds previously appropriated and 
available for studies of housing markets and credit for 
expenses of the Commission on Mortgage Interest Rates to study 
mortgage interest rates (established by P.L. 90-301, May 7, 
1968).

Title XVII--Miscellaneous
  Urban Renewal Demonstration Grant Programs
     Authorized urban renewal demonstration grants to 
be made to nonprofit organizations (previously available only 
to public bodies).
     Increased the limit on the amount of urban renewal 
demonstration grants from two- thirds of the cost of the 
undertakings to 90 percent of the cost. Increased the amount of 
funds available for these grants from $10 million to $20 
million.
  Advances in Technology in Housing and Urban Development
     Authorized such sums as may be necessary to be 
appropriated commencing with FY 1969, for studies of new and 
improved techniques and methods of applying advances in 
technology to housing construction and rehabilitation, and to 
urban development. Authorized four-year contracts for such 
studies (previously limited to two-year contracts).
  College Housing
     Authorized annual debt service grants for college 
housing, to be used to reduce the borrower's annual debt 
service payments on private market loans to the average annual 
debt service that would have been required if the loan were 
based on the rate charged on loans under the college housing 
direct loan program. Provided that the grants could be made 
over a fixed period up to 40 years. Authorized contracts for 
the grants, subject to approval in appropriation acts, in the 
amount of $10 million in FY 1969 and another $10 million on 
July 1, 1969.
     Made both the loan and new grant program for 
college housing available for the purchase of existing 
properties which are in need of little or no rehabilitation.
  Federal-State Training Programs
     Broadened the Federal-State training program to 
permit grants to States for the training of subprofessional 
(previously limited to professional) persons who will be 
employed in the field of housing as well as community 
development.
  Additional Assistant Secretary of Housing and Urban Development
     Authorized an additional Assistant Secretary of 
Housing and Urban Development.
  Self-Help Studies
     Authorized grants for studies of self-help in the 
construction, rehabilitation, and maintenance of housing for 
low-income persons and families and the methods of selecting, 
involving, and directing them in self-help activities. Required 
HUD to report to Congress within one year on the results of the 
studies.
  Savings and Loan Associations
     Authorized Federal savings and loan associations 
to refer to their share accounts as ``savings deposits'' and to 
borrow through the issuance of bonds and other obligations.
     Authorized savings and loan associations to invest 
in time deposits, certificates or accounts in banks insured by 
the FDIC; loans to finance mobile homes; unsecured loans up to 
$5,000 to finance the construction of new structures relating 
to residential use; loans up to $5,000 for equipping homes; 
loans guaranteed by AID on housing projects located in 
developing countries outside of Latin America; and loans to 
Federally supervised financial institutions or brokers or 
dealers registered with the SEC, if the loans were secured by 
loans, obligations or investments in which the Federal 
association has statutory authority to invest directly.
  Federal Home Loan Banks
     Authorized Federal Home Loan Banks to invest in 
housing loans guaranteed under the Foreign Assistance Act of 
1961.

   Amendments to Consolidated Farmers Home Administration Act of 1961

                  (Public Law 90-488, August 15, 1968)

     Raised the annual limit on development grants by 
the Farmers Home Administration for rural water and sewer 
project development costs from $50 million to $100 million, and 
extended the period within which such grants could be made 
prior to the completion of a comprehensive area plan from 
October 1, 1968 to October 1, 1971.
     Increased the annual limit on planning grants to 
be made to public bodies or other agencies having authority to 
prepare official comprehensive plans for the development of 
rural water or sewer systems from $5 to $15 million.
     Removed the $450 million limit on the amount of 
loans which could be insured in any one year for rural water 
and waste disposal projects and farm ownership.
     Increased the amount of direct loans made from the 
insurance fund for resale as insured loans which could be 
outstanding at any one time to $100 million from $50 million.

                     Foreign Assistance Act of 1968

                  (Public Law 90-554, October 8, 1968)

     Raised the ceilings for investment guarantees to 
$8.5 billion on specific risks; $550 million on extended risk, 
and to $390 million for extended risk for purposes other than 
housing.
     Raised the ceiling on investment guarantees for 
Latin American housing to $550 million.

             First Annual Report on National Housing Goals

                   (H. Doc. 91-35, January 17, 1969)

     Transmitted by the President to the Congress.

                Executive Order 11452, January 23, 1969

     Established the Council for Urban Affairs to 
advise and assist the President with respect to urban affairs. 
Directed the Council to:
          1. Assist the President in the development of a 
        national urban policy.
          2. Promote the coordination of Federal programs in 
        urban areas.
          3. Encourage the fullest cooperation between Federal, 
        State and city governments, with special concern for 
        the maintenance of local initiative and local decision 
        making.
          4. Ensure that policies concerning urban affairs 
        shall extend to the relations of urban, suburban, and 
        rural areas, to programs affecting them, and to the 
        movement of population between them.
          5. Seek constant improvement in the actual delivery 
        of public services to citizens.
          6. Foster the decentralization of government with the 
        object that program responsibilities will be vested to 
        the greatest possible extent in State and local 
        government.
          7. Encourage the most effective role possible for 
        voluntary organizations in dealing with urban concerns.
          8. Meet with and advise the President on the occasion 
        of emergency situations, or conditions threatening the 
        maintenance of civil order of civil rights.

                     Domestic Presidential Message

                    (H. Doc. 91-96, April 14, 1969)

     Promised a series of recommendations to the 
Congress proposing new approaches to a wide range of domestic 
programs and problems, including the problems of the cities and 
those of rural areas.
     Declared that the objective was not to turn away 
from old goals, but to new means for achieving them.
     Identified a beginning on revenue sharing to 
strengthen the financial capabilities of State and local 
governments as such an approach, along with other general 
concepts: e.g., greater use of tax incentives to enlist private 
resources in meeting public needs.

              Federal Assistance to States and Localities

        (Presidential Message, H. Doc. 91-148, August 13, 1969)

     Discussed the problems and deficiencies of the 
Federal grant-in-aid programs, which had evolved in recent 
times; set forth the President's approach to redirecting the 
flow of power and decision-making authority so as to strengthen 
State and local governments and reduce their dependence on the 
national government; and proposed an immediate beginning on a 
program of general revenue sharing, to follow certain 
enumerated principles.

          Report of the Commission on Mortgage Interest Rates

                           (August 13, 1969)

     Among other things, the Report of the Commission 
(which was established by P.L. 90-301): Recommended permanent 
abolition of the statutory interest ceiling on FHA mortgages 
and establishment of a new two-part system for a three-year 
trial period. Under the two-part system, FHA mortgages could be 
originated either (1) at an unregulated interest rate, provided 
no discount points were charged or collected by the lender or 
mortgage originator; or (2) at a ceiling rate set by the 
Secretary of HUD, with no restrictions on discount points.
     Proposed a special study to recommend ways of 
reducing closing costs associated with mortgage originations.
     Urged that housing be given a ``higher priority in 
national economic policy than had heretofore been the case.''
     Recommended several proposals for strengthening 
the role of the Federal Home Loan Bank System as a backstop for 
savings and loan associations.
     Recommended providing the subsidies needed by low- 
and moderate-income families to afford decent housing and that 
the government should stand ready as lender of last resort to 
provide the necessary mortgage credit to finance production of 
all housings units for which subsidies had been appropriated, 
whenever the supply of such credit from private lenders was 
inadequate to finance these units.
     Construction Industry Collective Bargaining 
Commission (Executive Order 11482, September 22, 1969) 
Established the Commission. Authorized it to conduct studies 
and to make general recommendations respecting any problems 
relating to collective bargaining in the construction industry, 
including training and development of manpower, instability, 
the improvement of productivity and technology, the improvement 
of the mobility of the labor force, the portability of 
pensions, and job security.

                      Disaster Relief Act of 1969

                  (Public Law 91-79, October 1, 1969)

     Authorized the President to provide, on a 
temporary basis, dwelling accommodations for disaster victims. 
He could (1) use any unoccupied Federally-owned housing, (2) 
arrange with a local public housing agency for using unoccupied 
public housing units, (3) lease existing dwellings, or (4) 
acquire mobile homes or other readily fabricated dwellings 
through leasing to be placed on sites purchased by the State or 
local government or by the owner-occupant displaced by the 
disaster, with no site charge being made.
     Required that rentals for the housing take into 
consideration the financial ability of the occupant. Rentals 
could be compromised, adjusted, or waived in cases of hardship 
for a period up to 12 months.
     Authorized the President to make grants to States 
and their political subdivisions for the removal of debris as a 
result of a major disaster.

                          Emergency Functions

               (Executive Order 11490, October 28, 1969)

     Consolidated the assignment of emergency 
preparedness functions previously contained in a number of 
Executive Orders.
     Directed the Secretary of Housing and Urban 
Development to prepare national emergency plans and develop 
preparedness programs covering all aspects of housing, 
community facilities related to housing, and urban development. 
However, military housing and housing leased for not more than 
one year remained the responsibility of the Department of 
Defense, and transportation facilities were excepted from the 
term ``urban development.''

                       Council for Rural Affairs

               (Executive Order 11493, November 13, 1969)

     Established the Council for Rural Affairs and 
designated the Secretary of HUD as one of the members of the 
Council.
     Directed the Council to advise and assist the 
President with respect to the further development of the 
nonmetropolitan areas, and assist in the development of 
policies for rural areas, including consideration of the 
affairs of the smaller cities and towns outside the 
metropolitan areas.
     Amendments to the Appalachian Regional Development 
Act (Public Law 91-123, November 25, 1969) Authorized HUD to 
provide directly or by contract, information, advice and 
technical assistance relating to the construction, 
rehabilitation and operation by nonprofit organizations of 
housing for low- or moderate-income families in the Appalachian 
Region.

                Amendment of Federal Home Loan Bank Act

                 (Public Law 91-151, December 23, 1969)

     Increased the authority of the Secretary of the 
Treasury to purchase obligations of the Federal Home Loan Banks 
by $3 billion to $4 billion.
     Provided that the Secretary of the Treasury should 
use the authority when alternative means could not effectively 
be employed, to permit members of the Home Loan Bank System to 
continue to supply reasonable amounts of funds to the mortgage 
market whenever the ability to supply such funds was 
substantially impaired during periods of monetary stringency 
and rapidly rising interest rates, and any funds so borrowed 
should be repaid by the Home Loan Bank Board at the earliest 
practicable rate.
    (The Conference Report on the Act stated that while the 
Senate conferees had prevailed in their position that a 
secondary market for the Federal Home Loan Banks might be 
worthwhile, the conferees had agreed that there were so many 
unknowns as to how the program would operate that the provision 
should be reserved for further study.)

               Housing and Urban Development Act of 1969

                 (Public Law 91-152, December 24, 1969)

GNMA Special Assistance
     Increased GNMA special assistance authority for 
purchasing mortgages covering low-cost housing by $1.5 billion.
     Required that the purchases be made at par.
     Raised the per-dwelling-unit limitation generally 
applicable to mortgages purchased by GNMA under its special 
assistance functions from $17,500 to $22,000.
     Authorized GNMA to purchase mortgages at a price 
equal to the unpaid principal amount at the time of purchase, 
with adjustments for interest and any comparable items, and 
subsequently to sell such mortgages at any time at a price 
which GNMA determined is within the range of market prices at 
the time of sale for the particular class of mortgage involved.
     Made rural housing mortgages insured under the 
Housing Act of 1949 (P.L. 81-171), except mortgages for above 
moderate-income families, eligible for purchase by GNMA under 
its special assistance authority.
Amendments to FHA Insurance Programs
     Lowered required downpayments for FHA sales 
housing by reducing from 20 percent (15 percent in the case of 
veterans and servicemen) to 10 percent the amount of such 
downpayment which is attributable to the value or cost of the 
property in the range between $20,000 and $25,000.
     Raised the limit on the amount of a mortgage which 
could be insured by FHA for a mobile-home court from $1,800 to 
$2,500 per space and from $500,000 to $1 million per project.
     Amended the FHA Title I home improvement loan 
insurance program to permit insurance under the program of 
loans financing the purchase of mobile homes to be used by the 
owners as their residences. The loan could be up to $1,000 in 
amount and be repaid within 12 years.
     Increased the maximum mortgage amount under the 
FHA Section 220 urban renewal multifamily housing program from 
$30 million to $50 million where the project was privately 
sponsored.
     Gave servicemen the benefits of payment of 
mortgage insurance premiums on their behalf by the Federal 
Government when they purchased a one-family unit in a 
condominium with a new mortgage. (Previously, this benefit was 
available only when they assumed an existing FHA-insured 
mortgage covering the unit.)
     Expanded the FHA nursing home mortgage insurance 
program to cover mortgages financing new or rehabilitated 
intermediate care facilities or combined nursing homes and 
intermediate care facilities.
     Raised the per-dwelling-unit limit on housing for 
Alaska Natives and others residing in remote areas of Alaska 
from $7,500 to $10,875.
     Increased the per-room and per-unit limits on FHA-
insured mortgages by 10 percent for sales and multifamily 
housing under certain programs, and by 20 percent for sales 
housing insured under certain sales housing programs.
     Increased the amount which HUD is authorized to 
advance from the FHA General Insurance Fund to the Special Risk 
Insurance Fund from $5 million to $20 million.
     Provided for FHA mortgage insurance for group 
practice facilities in older, declining urban areas under the 
Special Risk Insurance Fund. Placed the maximum amount of a 
mortgage for a group practice facilities project on the basis 
of 90 percent of its estimated replacement cost rather than 90 
percent of its estimated value of the property when completed.
Savings and Loan Associations
     Authorized the Federal Home Loan Bank Board to 
establish the maximum rate of interest chargeable by members of 
the Federal Home Loan Bank System on home mortgage loans on 
single-family dwellings in any State which does not have a 
statutory contract rate of interest applicable to mortgage loan 
transactions.
     Authorized Federal savings and loan associations 
to invest in the stock of a corporation authorized to be 
created under the National Housing Partnership provisions 
(Title IX) of the Housing and Urban Development Act of 1968 
(P.L. 90- 448, August 1, 1968), and in any partnerships formed 
by the corporation.

Low- and Moderate-Income Programs
  Sections 235 and 236 Mortgage Interest-Reduction Programs
     Authorized up to 30 percent of the total amount of 
contracts for homeownership assistance payments which were 
authorized to be made by appropriation acts for FYs 1970 and 
1971 to be made with respect to existing dwellings or dwelling 
units in existing projects. (Previously, only 15 percent of the 
contracts for FY 1970 and 10 percent of the amount of contracts 
for FY 1971 could be made with respect to existing housing).
     Included families applying for Section 235 
homeownership assistance among those who could be given 
preference for mortgage insurance and counseling service. 
(Previously, the preference was limited to applicants who did 
not meet normal FHA credit standards and who were living in 
public housing units or who were displaced from urban renewal 
areas and were eligible for public housing.)
     Made homeownership assistance payments for home 
purchasers under the Section 235 program for low-income 
families available to eligible families who assumed mortgages 
under the program.
     Authorized HUD to increase from 20 percent to 40 
percent, the maximum percentage of units in a Section 236 
rental housing project which could be occupied by tenants 
receiving rent supplements.
     Authorized interest-reduction payments with 
respect to part of a mortgage on a rental or cooperative 
housing project (as well as with respect to the entire 
mortgage) financed under a State or local program approved for 
receiving the benefits of the Section 236 program.
  Public Housing
     Increased the maximum amount of Federal loans or 
loan commitments for financing the acquisition or development 
of low-rent public housing from 90 to 100 percent. Limited rent 
in public housing projects to one-fourth of a tenant's income, 
as defined by HUD. Provided further that this limit on rent 
should not apply in any case in which HUD determines that 
limiting the rent of a tenant would result in a reduction in 
the amount of welfare assistance which would otherwise be 
provided to the tenant by a public agency (so-called Brooke 
Amendment).
     Provided that for the purpose of insuring the low-
rent character of public housing projects, any contract for 
annual contributions may be amended or superseded in order that 
the annual contributions may be fixed on the basis of the 
current going Federal rate of interest.
     Required each public housing agency to notify 
promptly any applicant determined to be ineligible for 
admission to public housing of such determination and, upon 
request, provide the applicant an opportunity for an informal 
hearing on the determination. Required eligible applicants to 
be notified promptly of the approximate date of occupancy.
     Increased per-room cost limits of public housing 
from $2,400 to $2,800; for the elderly from $3,500 to $4,000; 
and for Alaska from $3,500 to $3,900 and from $4,000 to $4,500 
for elderly in Alaska projects. Increased the increment for 
high-cost areas from $750 to $1,500 per room for elderly 
families and to $1,400 per room in other cases.
     Removed the workable program requirement for low-
rent public housing.
  Section 221(d)(3) Housing
     Removed the workable program requirement for 
Section 221(d)(3) below-market interest rate housing.

Sale of Land for Housing
     Authorized real property which is surplus within 
the meaning of the Federal Property and Administrative Services 
Act to be transferred to HUD, at its request, for sale or lease 
at its fair value for use in the provision of rental or 
cooperative housing to be occupied by families or individuals 
of low or moderate income. (Repealed by Section 126(a)(3), 
Housing and Urban Renewal Act of 1983, P.L. 98-181, November 
30, 1983.)

Urban Renewal and Rehabilitation
     Made the Pacific Islands and Indian tribes 
eligible for urban renewal loans and grants and for 
rehabilitation grants, and for demolition and code enforcement 
grants.
     Extended the period of eligibility of local grants 
in aid for certain urban renewal and neighborhood development 
projects.
     Made enclosed pedestrian malls eligible for 
inclusion in urban renewal project costs.
     Raised the limit on the amount of a rehabilitation 
grant from $3,000 to $3,500.
     Removed a requirement which limited eligibility 
for residential rehabilitation loans to persons whose annual 
incomes were within local applicable income limits for the 
221(d)(3) below-market interest rate program. Increased the 
limit on the amount of a supplemental grant with respect to an 
urban renewal loan from private sources to an amount which HUD 
determined necessary to enable a local public agency to obtain 
funds from private sources. Required HUD within one year after 
date of enactment of the law, and every two years thereafter, 
to review each locality's relocation plan. Required Federally-
assisted urban renewal projects which include the demolition or 
removal of residential structures to include the provision in 
the area within which the urban renewal agency has 
jurisdiction, by construction or rehabilitation, of standard 
housing units for occupancy by low- and moderate-income 
families at least equal in number to the number of units 
demolished or removed.

Model Cities and Metropolitan Development Programs
     Required that 10 percent of any appropriations for 
model cities supplemental grants be used in cities or counties 
of less than 100,000 population.
     Extended the time within which a community could 
qualify for a basic water and sewer facilities grant without 
having its program completed for an area-wide system until 
October 1, 1970.
     Extended the interim program of 50 percent grants 
for mass transportation facilities and equipment in urban areas 
not yet able to meet full area-wide comprehensive planning and 
programming requirements until July 1, 1971.

Trust Territory of the Pacific Islands
     Made the Trust Territory of the Pacific Islands 
eligible to receive assistance for public housing, public 
facility loans, and the FHA loan insurance programs.
Employment Opportunities for Lower-Income Persons
     Directed HUD in the administration of programs 
providing direct financial assistance in aid of housing, urban 
planning, development, redevelopment, public or community 
facilities, and new community development to require that 
opportunities for training and employment arising in connection 
with the planning and carrying out of projects assisted under 
the programs be given to lower-income residents in the project 
area, and that contracts for work to be performed in connection 
with the projects be awarded to business concerns which are 
located in or owned in substantial part by persons residing in 
the project area.

Riot and Flood Insurance Programs
     Permitted riot reinsurance contracts to be entered 
into during the course of the entire reinsurance contract year.
     Extended the time within which State legislation 
must be enacted providing for reimbursement to HUD of the State 
share of reinsured property losses to the close of the second 
full regular session of the State Legislature following August 
1, 1968.
     Authorized HUD, until December 31, 1971, to carry 
out the national flood insurance program without the actuarial 
determination of estimated risk premium rates.
     Extended the program to cover mudslide damage and 
related problems.
     Made flood insurance available in those States or 
areas which gave statutory assurance to the Secretary of HUD 
that by December 31, 1971, ``adequate'' land-use and control 
measures would be adopted. (Previously, assurance had to be 
given that ``permanent'' land-use and control measures would be 
adopted by June 30, 1970.)
Interstate Land Sales
     Defined the exemption from registration 
requirements in certain cases where real estate is sold or 
leased to persons who have personally inspected the property to 
apply:
          (1) only where there is a personal on-the-lot 
        inspection;
          (2) in cases where land is subject to assessments by 
        property owners' associations (as well as State and 
        local taxes and assessment); and
          (3) in cases where the liens, encumbrances, or 
        adverse claims involved constitute beneficial property 
        restrictions enforceable by other lot owners or lessees 
        (as well as in cases where they constitute reservations 
        for public service purposes), if before entering into 
        the contract of sale or lease the developer furnishes 
        the purchaser or lessee with a descriptive and concise 
        statement of all such reservations, taxes, assessments, 
        and restrictions and the purchaser or lessee 
        acknowledges in writing his receipt thereof.

Rural Housing
     Removed the $100 million limitation on the amount 
of new loan paper which could be held in the Rural Housing 
Insurance Fund at any one time.
     Authorized the Secretary of Agriculture to sell 
insured rural housing loans out of the Rural Housing Insurance 
Fund in blocks and to treat such transactions as a sale of 
assets for budgetary purposes regardless of whether he keeps 
custody of the notes as trustee for the purchaser.
     Authorized the Secretary of Agriculture to make 
commitments to make or insure rural housing loans on one or 
more properties upon application by the lender, builder, or 
seller and upon compliance with such requirements as he may 
specify.
     Abolished the Rural Housing Direct Loan Account 
and transferred assets, liabilities, and authorizations of the 
Account to the Rural Housing Insurance Fund.
     Authorized the Secretary of Agriculture to make or 
insure loans to nonprofit organizations to provide sites for 
rural housing for low- and moderate-income families.

Employment of New or Imported Technologies
     Amended Section 1010 of the Demonstration Cities 
and Metropolitan Development Act of 1966 (P.L. 89-754) to 
direct HUD to assure, to the extent feasible, in connection 
with the construction, major rehabilitation, or maintenance of 
any housing assisted under this Section of applying advances in 
technology, that there is no restraint by contract, building 
code, zoning ordinance, or practice against the employment of 
new or improved technologies, techniques, materials and methods 
or of preassembled products which may reduce the cost or 
improve the quality of such construction, rehabilitation, and 
maintenance, and therefore stimulate expanded production of 
housing under such programs, except where such restraint is 
necessary to insure safe and healthful working and living 
conditions. (Section 1010 was repealed by the Housing and Urban 
Development Act of 1970, P.L. 91-609, December 31, 1970.)

                         Tax Reform Act of 1969

                 (Public Law 91-172, December 30, 1969)

     Revised the provisions for bad debt reserves 
deduction for mutual banking institutions to make them 
consistent with those applicable to savings and loan 
associations.
     Changed provisions of the tax law relating to real 
estate depreciation, to permit 125 percent declining balance 
depreciation of new rental property with a useful life of 20 
years or more acquired after July 24, 1969; to permit 
accelerated depreciation of new rental housing; and to provide 
a special five-year amortization deduction in the case of 
expenditures made before December 31, 1974, for the 
rehabilitation of buildings for low-cost rental housing.
     Provided that if a Section 221(d)(3) or 236 
housing project was sold or disposed of by the taxpayer in an 
approved disposition, and within a certain period the taxpayer 
reconstructed or acquired another qualified housing project, 
then at the election of the taxpayer, gain from such 
disposition would be recognized only to the extent that the net 
amount realized exceeded the cost of the acquired housing 
project. Required that the sale or disposition be approved by 
HUD.
     Repealed the investment tax credit.

                Economic Opportunity Amendments of 1969

                 (Public Law 91-177, December 30, 1969)

     Amended the rural loan provisions of the Act to 
make it clear that the Farmers Home Administration should 
consider applications for loans to the elderly for repairs and 
improvements of their homes.

                National Environment Policy Act of 1969

                  (Public Law 91-190, January 1, 1970)

     Declared that it is the continuing policy of the 
Federal Government, in cooperation with State and local 
governments, and other organizations, to use all practical 
means, including financial and technical assistance, in a 
manner calculated to foster and promote the general welfare, to 
create and maintain conditions under which man and nature can 
exist in productive harmony.
     Directed that Federal agencies should include in 
every recommendation or report on proposals for legislation and 
other major Federal actions significantly affecting the quality 
of the human environment, a detailed statement on the 
environmental impact of the proposed action.
     Required the President to submit annually, 
beginning July 1, 1970, an Environmental Quality Report.
     Created the Council on Environmental Quality in 
the Executive Office of the President.
                VI. THE 1970s--REAPPRAISAL AND REDESIGN

                          Housing Legislation

     (Presidential Letter to Chairman, Senate Banking and Currency 
             Committee, Cong. Rec. p. 7457, March 16, 1970)

     Urged the Congress to enact promptly proposed 
legislation to provide subsidies for housing for low- and 
moderate-income individuals by reducing interest rates on 
mortgages. The proposed bill would permit application to the 
Federal Home Loan Bank System of $250 million to subsidize 
advances to savings and loan associations.
     Urged prompt action on a request for supplemental 
appropriation authority adding $50 million to the 1970 
authority available for entering into interest-subsidy 
contracts under the homeownership and rental housing assistance 
programs (Sections 235 and 236).

                Loans to Indians and Tribal Corporations

                  (Public Law 91-229, April 11, 1970)

     Authorized the Secretary of Agriculture to make 
direct loans from the Farmers Home Administration direct loan 
account and to make and insure loans as provided in the Farmers 
Home Administration Act to any Indian Tribe recognized by the 
Secretary of Interior, or tribal corporation, to acquire lands 
or interests in lands.

                       Council for Urban Affairs

                 (Executive Order 11541, July 1, 1970)

     Terminated the Council for Urban Affairs and 
provided that the functions heretofore assigned to that Council 
should be performed by the Domestic Council in the Executive 
Office of the President.

                   Emergency Home Finance Act of 1970

                   (Public Law 91-351, July 24, 1970)

Federal Home Loan Bank System
     Authorized to be appropriated up to $250 million 
for use by the Federal Home Loan Bank Board for disbursement to 
the Federal Home Loan Banks for the purpose of adjusting the 
effective interest charged by the banks on short-term and long-
term borrowing to promote an orderly flow of funds into 
residential construction.
     Directed the Board to disburse the funds under 
such terms and conditions as would assure that they would be 
used to assist in the provision of housing for low- and middle-
income families.
FNMA Secondary Market for Conventional Mortgages
     Expanded the purchase authority of FNMA to permit 
it to purchase conventional mortgages, in addition to the 
Federally-underwritten mortgages it had previously purchased 
and sold.
     Limited the purchases generally to mortgages with 
a maximum loan-to-value ratio of 75 percent. This restriction 
did not apply (1) if the excess above the 75 percent was 
privately insured or guaranteed; (2) if the seller agreed, for 
such period and under such circumstances as FNMA required, to 
repurchase or replace the mortgage upon demand of FNMA in the 
event of a default; or (3) if the seller retained a 
participation of at least 10 percent.
     Limited the amounts of the mortgages purchased 
under the new authority to comparable limits applicable under 
the FHA Section 203(b) sales housing and Section 207 rental 
housing programs.

Federal Home Loan Mortgage Corporation
     Created the Federal Home Loan Mortgage Corporation 
(FHLMC), with authorization to purchase, and make commitments 
to purchase, mortgages on residential property from any Federal 
Home Loan Bank, the Federal Savings and Loan Insurance 
Corporation, any other member of a Federal Home Loan Bank, or 
any financial institution the deposits or accounts of which are 
insured by a Federal agency.
     Authorized the Corporation to hold and deal with, 
and sell or otherwise dispose of, mortgages or interests in 
mortgages.
     Made the Corporation's authorities and limitations 
substantially similar to those of FNMA in the conventional 
secondary market, as summarized above.
     Authorized the Corporation to borrow, to give 
security, to pay interest, and to issue securities, including 
mortgage-backed securities guaranteed by the Government 
National Mortgage Association.
     Made the members of the Federal Home Loan Bank 
Board the Board of Directors of the Corporation. Stock of the 
Corporation was to consist only of nonvoting common stock, 
issued only to Federal Home Loan Banks, which were directed to 
subscribe for such amounts of stock as were prescribed by the 
Corporation. Limited stock subscriptions to a cumulative total 
of $100 million.

GNMA Special Assistance Funds
     Provided an additional $1.5 billion in 
Presidential special assistance authority for GNMA. Of this 
amount $750 million was new special assistance authority and 
$750 million was transferred from the emergency special 
assistance program for low- and moderate-income housing.
     Authorized GNMA to purchase FHA Section 236 
mortgages on rental housing for low-income families where the 
mortgages cover property receiving local tax abatement benefits 
even though per-unit costs on the property exceed $22,000.

Subsidy for Middle-Income Housing
     Authorized HUD to make interest-subsidy payments 
to FNMA and the new Federal Home Loan Mortgage Corporation with 
respect to certain home mortgages purchased by them during 
periods of high mortgage interest rates. The payments were to 
be equal to the difference between the total amount of interest 
per calendar quarter received on the mortgages and the total 
amount of interest which would have been received if the yield 
on the mortgages was equal to (1) the average cost of all 
borrowed funds FNMA or FHLMC had outstanding in the immediately 
preceding quarter plus (2) an amount which HUD determined is 
necessary and appropriate for administrative and other 
expenses.
     Required the mortgagor to make monthly payments on 
the mortgage equal to an amount which would be required if the 
mortgage bore an effective interest rate of 7 percent, or such 
higher rate as the mortgagor could pay by applying at least 20 
percent of his income toward homeownership expenses. Required 
that incomes be recertified at least every two years for 
purposes of adjusting the amount of the mortgagor's payment.
     Permitted HUD to require that the mortgagor, in 
order to qualify for assistance payments, have an income of not 
more than the median income for the area.
     Authorized assistance payments for (1) 
conventional mortgages meeting the requirements of the title, 
(2) VA mortgages, or (3) FHA- insured mortgages, involving a 
single-family dwelling or condominium unit having an appraised 
value of not more than $20,000 ($30,000 in high cost areas). At 
the discretion of HUD, 25 percent of the mortgages insured 
under Title II could cover existing housing. Made mortgages 
insured under the FHA cooperative housing program and covering 
middle- income cooperatives eligible for the assistance 
payments.
     Required the aggregate amount of contracts to make 
assistance payments under this program not exceed amounts 
approved in appropriations acts, and limited payments pursuant 
to the contracts to $105 million during the first year of the 
contracts, which amount was increased by an additional $105 
million on July 1 of each of the years 1971 and 1972. After 
June 30, 1973, no interest subsidy payments could be made 
except pursuant to contracts entered into on or before that 
date.

Settlement Costs
     Directed HUD and the Administrator of Veterans' 
Affairs, after consultation, to prescribe standards governing 
the amounts of settlement costs allowable in any area in 
connection with the financing of FHA and VA-assisted housing.
     Directed them to make a joint study and report 
recommendations to the Congress no later than one year after 
enactment of the Act, as to legislative and administrative 
actions to reduce and standardize settlement costs.

Urban Renewal and Public Housing Loans
     Provided that, from July 24, 1970 until July 1, 
1972, urban renewal and public housing loans could bear 
interest at a rate less than the applicable going Federal rate 
but at not less than 6 percent in cases where HUD determined 
this was necessary because of interest rate limitations of 
State laws.

New Community Obligations
     Authorized HUD to issue obligations to the 
Treasury in an amount sufficient to enable it to make timely 
payments of liabilities incurred as a result of the guarantees 
covering the obligations of new community developers, when 
amounts in the guarantee fund from fees, charges and other 
receipts were inadequate to make the payments.

Federal Savings and Loan Associations
     Authorized Federally-chartered savings and loan 
associations to engage in statewide lending in States where 
State-chartered associations were allowed to engage in such 
lending.
     Raised the per-dwelling-unit limit on loans made 
by the associations from $40,000 to $45,000.

College Housing
     Increased the limit on the aggregate amount of 
contracts which could be entered into to make annual debt 
service grants to help college housing facilities by $2.1 
million.

               Emergency Community Facilities Act of 1970

                  (Public Law 91-431, October 6, 1970)

     Authorized the appropriation of $1 billion for 
grants for urgently needed basic water and sewer facilities 
under Section 702 of the Housing and Urban Development Act of 
1965 (P.L. 89-117); made the balance of the authorization under 
that Act available for appropriation; and extended for one year 
the time within which a community could qualify for a basic 
water and sewer facility even though its program for an area-
wide system, though under preparation, was not completed.

            Urban Mass Transportation Assistance Act of 1970

                 (Public Law 91-453, October 15, 1970)

     Authorized a new program of 10-year loans to 
States and public bodies or their agencies to acquire real 
property for use as rights of way, station sites, and related 
purposes of urban mass transportation systems, including the 
net cost of property management and relocation payments.
     Provided that a grant agreement for construction 
of facilities under the Act could provide for forgiveness of 
repayment of the principal and accrued interest on a loan then 
outstanding, in lieu of a cash grant in the amount forgiven.
     Provided that the interest rate was to be 
determined by the Secretary of the Treasury, taking into 
consideration current average market yield on outstanding 
marketable obligations of the U.S. with comparable maturities, 
plus an allowance adequate to cover administrative costs and 
probable losses under the program.
     Limited the loan maturity to 40 years.
     Authorized the Secretary of Transportation, to 
finance grants and loans, to incur contractual obligations 
after enactments of the law up to $3.1 billion, less amounts 
appropriated pursuant to this Act and the amount appropriated 
to the Urban Mass Transportation Fund by Public Law 91-168. 
Authorized to be appropriated up to $80 million prior to July 
1, 1971, and this amount could be increased to not to exceed an 
aggregate of $310 million prior to July 1, 1972, and annual 
increases thereafter through 1975 up to the aggregate of $3.1 
billion. Required that requests for authorizations to meet the 
commitments of the law be submitted at two-year intervals.
     Extended the interim program of 50 percent grants 
in urban areas not yet able to meet full area-wide 
comprehensive planning and programming requirements until July 
1, 1972.
     Replaced the air pollution requirement of the 1964 
Act with a broad declaration of national policy that special 
effort should be made to preserve the natural beauty of the 
countryside, public parks, and recreation lands, wildlife and 
water fowl refuges, and important historical and cultural 
assets in the planning, designing, and construction of urban 
mass transportation projects. Required the Secretary of 
Transportation to consult with HUD in implementing this policy.
     Amended provisions for State limitations on 
grants.
     Provided that nothing in the law should affect the 
authority of HUD to make grants under the Urban Mass 
Transportation Act of 1964 (P.L. 88-365) and Reorganization 
Plan 2 of 1968 for projects or activities primarily concerned 
with the relationship of urban transportation systems to the 
comprehensively planned development of urban areas, or the role 
of transportation planning in overall urban planning.
     Directed the Secretary of Transportation to 
conduct a study and report within one year on the feasibility 
of providing Federal assistance to help defray the operating 
costs of mass transportation companies in urban areas and of 
any changes in the Urban Mass Transportation Act of 1964 which 
would be necessary in order to provide such assistance.

                        Agricultural Act of 1970

                 (Public Law 91-524, November 30, 1970)

     Dealt mainly with functions of the Secretary of 
Agriculture related to open space, recreational facilities, 
areas of natural beauty, and similar matters. In addition 
required the Secretary of HUD and the Secretary of Agriculture 
to submit to the Congress annually a joint report as to their 
efforts during the year to provide assistance to States 
planning for the development of rural multicounty areas not 
included in economically depressed areas under authority of the 
Housing and Urban Development Act of 1968 (P.L. 90-448).

  Counseling Services in Independent Offices and HUD Appropriation Act

      (Conference Report to Public Law 91-566, December 17, 1970)

     In deleting a request for funds for this program 
the Conferees suggested that any counseling be provided by 
voluntary groups and existing community services. Where such 
services were not available, they could be provided as part of 
the normal mortgage insurance and initiation and servicing 
activities.

                    Federal Aid Highway Act of 1970

                 (Public Law 91-605, December 31, 1970)

     Authorized the Secretary of Commerce to approve as 
a part of the cost of construction of any project on any 
Federal aid system, the cost of (1) constructing new housing, 
(2) acquiring existing housing, (3) rehabilitating existing 
housing, and (4) relocating existing housing as replacement 
housing for individuals and families where a proposed project 
on the Federal aid system cannot proceed to actual construction 
because replacement housing is not available and cannot be made 
available.

                      Disaster Relief Act of 1970

                 (Public Law 91-606, December 31, 1970)

     Authorized Director of OEP to provide temporary 
housing or other emergency shelter, including but not limited 
to mobile homes or other readily fabricated dwellings, for 
those who as a result of a major disaster required temporary 
housing or emergency shelter. For the first 12 months of 
occupancy no rentals were to be established for such 
accommodations.
     Authorized sale of any such emergency housing 
acquired by purchase directly to occupants at fair and 
equitable prices.
     Authorized the President to provide temporary 
assistance for up to a year in the form of mortgage or rental 
payments to or on behalf of individuals and families, who as a 
result of financial hardship caused by a major disaster have 
received written notice of dispossession or eviction or 
termination of lease.
     Liberalized the disaster loan authorities of the 
Small Business Administration and the Farmers Home 
Administration.
     Authorized the Administrator of Veterans' Affairs 
to agree to modification of the terms of housing loans made, 
guaranteed or held by him to provide forbearance in individual 
cases, and to provide counseling to home owners concerning the 
disaster assistance available.
     Authorized HUD to refinance any note or obligation 
held by it in connection with any loan made by the Department, 
where it finds such refinancing necessary because of the loss, 
destruction, or damage as a result of a major disaster to 
property or facilities securing the obligations, and to 
authorize suspension in the payment of principal and interest 
and extension of the maturities up to five years.
     Authorized the Small Business Administration and 
the Farmers Home Administration to make loans to business 
enterprises in such amounts as might be necessary to enable 
them to resume operations.
     Authorized priorities under the public housing law 
and other laws providing assistance for public facilities be 
given to applications from public bodies situated in major 
disaster areas. (Repealed, with some exceptions, by Disaster 
Relief Act of 1974, P.L. 93-288, May 22, 1974.)

               Housing and Urban Development Act of 1970

                 (Public Law 91-609, December 31, 1970)

Amendment to FHA Insurance Programs
     Raised the limit on the amount of an FHA-insured 
mortgage financing a hospital from $25 million to $50 million.
     Authorized FHA to insure mortgages financing new 
or rehabilitated proprietary hospitals.
     Authorized FHA insurance for supplemental loans to 
finance improvements to multifamily projects and certain health 
facilities which were originally covered by FHA-insured 
mortgages but were presently covered by uninsured mortgages 
held by the Secretary of HUD.
     Raised the limit on the amount of an FHA-insured 
mobile-home loan to $15,000 when the unit was composed of two 
or more modules. Permitted the term of the loan in such a case 
to be 15 years 32 days (previously 12 years 32 days).

Federal National Mortgage Association
     Authorized FNMA, with the approval of HUD, to 
establish the minimum stock purchase requirements applied to 
those who sell mortgages to FNMA. (Previously, the law required 
not less than 1 percent nor more than 2 percent of the unpaid 
principal amount of the mortgages sold.)

Low- and Moderate-Income Programs
     Authorized technical assistance and advice with 
respect to individual tenants and homeowners assisted under HUD 
programs in addition to nonprofit sponsors of multifamily 
housing.
     Authorized HUD to make grants to support (1) the 
training of persons, particularly persons of low-income, in the 
management of low- and moderate-income housing, and (2) the 
conduct of research and information programs related to the 
management of such housing.
     Authorized HUD to provide information and advice 
to nonprofit organizations desiring to sponsor housing projects 
assisted under HUD programs.
     Authorized the Administrator of General Services 
to dispose of Federal surplus land to HUD for the construction 
of low- and moderate-income sales housing and related public 
commercial and industrial facilities. (Previously, the law 
authorized such disposal only for low- and moderate-income 
rental or cooperative housing.)
  Sections 235 and 236 Interest-Reduction Programs
     Authorized up to 30 percent of the total amount of 
contracts for Section 235 homeownership assistance payments to 
be made with respect to nonrehabilitated existing dwellings or 
dwelling units in existing projects. At least 10 percent of the 
total amount of such contracts was to be available for use only 
with respect to rehabilitated dwellings.
     Eliminated the requirement that a two-family 
dwelling must be purchased with the assistance of a nonprofit 
organization in order to be eligible for assistance under the 
Section 235 program.
     Authorized HUD to make expenditures to correct, or 
to compensate the owner of a Section 235 home for structural or 
other defects which seriously affect the use and liveability of 
the home if the home was more than one year old on the date of 
insurance commitment for the mortgage. Time limits for 
application for the assistance were set, and the defect must be 
one that a proper inspection could reasonably be expected to 
disclose.
     Permitted Section 235 homeownership payments to be 
made on behalf of lower- income members of cooperative housing 
projects financed with aid under a State or local program where 
the projects were approved by HUD prior to the completion of 
construction or substantial rehabilitation.
     Authorized HUD, in computing the amount of rental 
assistance payments for Section 236 rental housing, to treat 
fees and charges imposed on mortgagors participating in State 
or locally financed mortgage lending programs in the same 
manner as FHA charged mortgage insurance premiums.
     Permitted rental assistance payments under the 
Section 236 program, and rent supplement payments to be made 
with respect to rental or cooperative housing projects financed 
with aid under a State or local program without regard to the 
time at which construction or rehabilitation of the project was 
completed. (This assistance was previously limited to projects 
approved prior to completion of construction or 
rehabilitation.)
     Authorized HUD to enter into contracts with States 
or State agencies under which interest-reduction payments would 
be paid with respect to all or part of a Section 236 rental 
housing project.
  Public Housing
     Repealed the grant program for tenants services in 
public housing projects and authorized such services to be 
financed out of project income and annual contributions 
payment.
     Required at least 30 percent of the units under 
contracts entered into under this new authority or under any 
subsequent law to be provided under the Section 23 leasing 
provisions of the United States Housing Act of 1937.
     Raised the limit on the term of a Section 23 lease 
contract from five to 10 years, but no renewal of any such 
contract could result in a total term exceeding 20 years (15 
years in the case of an existing structure).
     Directed HUD to encourage local public housing 
agencies to develop congregate housing for the displaced, 
elderly and handicapped, and provided that not more than 10 
percent of the total contracts for annual contributions entered 
into in any fiscal year pursuant to the new authority granted 
in the Act or subsequent acts be entered into with respect to 
this type of housing.
     Provided a statutory definition of income for the 
purpose of establishing maximum rentals at one-fourth of tenant 
income.
     Provided a new formula for establishing 
construction cost limits for public housing projects. 
Authorized HUD to determine periodically, and publish in the 
Federal Register, prototype construction costs for each area 
based on prevailing cost factors. The development cost of any 
project could not exceed by more than 10 percent the 
appropriate prototype cost for the area.
     Provided that annual contributions contracts could 
be amended or superseded to assure the low-rent character of 
the projects involved and to achieve and maintain adequate 
operating and maintenance services and reserve funds, including 
payments of outstanding debts.
     Added a provision to the public housing law 
setting forth the sense of the Congress that no tenant should 
be barred from serving on the Board of Directors or similar 
governing body of a local public housing agency because of his 
tenancy in a low-rent housing project.
  Congregate Housing
     Made FHA mortgage insurance available to 
congregate housing to be occupied by displaced, elderly, or 
handicapped persons under the Sections 221 and 236 programs, 
and authorized rent supplements to be paid to the owners of 
rental projects to be occupied by such persons.

Experimental Housing Allowance Program
     Authorized HUD to conduct research programs to 
demonstrate the feasibility of providing low-income families 
(those families eligible for occupancy in public housing 
projects in an area) with housing allowances to assist them in 
obtaining existing standard rental housing of their choice. The 
housing allowance could not exceed the difference between 25 
percent of the family's income and the fair market rental of 
similar-sized units or projects receiving rent supplement 
benefits.
     Authorized HUD to contract with public or private 
organizations to help select eligible families.
     Authorized contracts to make annual housing 
allowance payments up to $10 million for each of fiscal years 
1972 and 1973. The program was to terminate June 30, 1973.
Urban Renewal
     Authorized HUD to permit payment to displaced 
business concerns of fixed amounts (in lieu of their total 
certified actual moving expenses) where it determined that it 
is impractical for a displaced business concern to calculate 
the amounts of such expenses.
     Authorized HUD, where a local urban renewal 
agency, due to circumstances beyond its control did not expect 
to be able in the reasonably near future to dispose of 
remaining urban renewal project land, to compute the net 
project cost and close out the project at no additional cost to 
the locality.

Prevention of Housing Abandonment
     Authorized HUD to undertake programs to 
demonstrate the most feasible means of providing assistance to 
localities in arresting the process of housing abandonment or 
was restoring viability to blighted areas in which abandonment 
was pervasive. Provided grants to assist local public bodies in 
planning and implementing demonstration projects in designated 
demonstration areas. Projects could include, but were not 
limited to:
          1. acquisition of real property within the 
        demonstration area;
          2. repair of streets, sidewalks, parks, playgrounds, 
        publicly owned utilities, and public buildings to meet 
        needs consistent with the revitalization and continued 
        use of the area;
          3. demolition of structures determined to be 
        structurally unsound;
          4. establishment of recreational or community 
        facilities;
          5. improvement of garbage and trash collection, 
        street cleaning and other essential services;
          6. rehabilitation of privately and publicly owned 
        real property by the locality; and
          7. establishment and operation of locally controlled, 
        nonprofit housing management corporations and municipal 
        repair programs.
     Permitted real property held as a part of a 
project to be made available for use in the provision of new or 
rehabilitated housing for families of low or moderate income. 
For this purpose it could be sold or leased at fair market 
value for its proposed use to limited dividend corporations, 
nonprofit corporations, cooperatives or public bodies or 
agencies, or to other approved purchasers or lessees, or to a 
purchaser who would be eligible for a mortgage insured under 
FHA's Section 221, 235, or 236 programs of housing for low-
income families.
     Authorized to be appropriated for demonstration 
grants under the program up to $20 million for fiscal year 
ending June 30, 1971. Any amounts appropriated remain available 
until expended and any amount authorized but not appropriated 
may be appropriated for any succeeding fiscal year commencing 
prior to July 1, 1972.
     Provided that grants could not exceed 90 percent 
of the net project cost and that not more than one-third of the 
aggregate amount of grants made in any fiscal year could be 
made with respect to projects undertaken by one locality.
     Required HUD to report annually to the Congress 
with respect to the status of demonstration projects.

Title VI--Crime Insurance
     Provided direct Federal insurance for properties 
located in areas where statewide programs and the Federal 
reinsurance program do not provide crime insurance coverage, or 
do so only at prohibitive rates.
     Required HUD to review the market availability of 
crime insurance in each State. If a critical unavailability 
problem was found to exist in any State at any time on or after 
August 1, 1971, HUD could make available direct Federal crime 
insurance at affordable rates. However, no such insurance may 
be made available to a property which HUD determined to be 
uninsurable or to a property with respect to which reasonable 
protective measures, consistent with Federal criteria, had not 
been adopted.
     Authorized HUD to consider various factors which 
affect the nature of the hazard and the degree of risk involved 
when estimating affordable rates. Authorized it to adopt either 
uniform national rates or rates varying by States and 
territories, and to make modification of rates as appropriate.
     Required HUD to include in reports to Congress 
complete information concerning the operation of the crime 
insurance program.
     Authorized the use of Treasury borrowings under 
Section 520(b) of the National Housing Act for the purposes of 
the direct Federal crime insurance program.
     Required HUD, through an Office of Review and 
Compliance under the Federal Insurance Administrator, to review 
periodically each plan established under this title of the 1970 
law in order to make sure that essential property insurance was 
readily available in areas where the FAIR plan was intended to 
operate and identify any aspect of such plan which might 
require revision.

Open-Space Land Programs
     Amended Title VII of the Housing Act of 1961 (P.L. 
87-70, June 30, 1961), which authorized grants for open-space 
land, urban beautification, and historic preservation, to 
authorize a single program of grants for:
          (i) acquisition of title to, or other interests in, 
        open- space land in urban areas, and
          (ii) the development of open-space or other land in 
        urban areas for open-space uses, including historic 
        preservation.
     Provided that grants could not exceed 50 percent 
of the eligible project cost of the acquisition or development. 
It was made clear that grants could be made to (1) help acquire 
less than fee interests in open-space land, and (2) help 
develop, for open- space uses, lands which were not originally 
acquired with assistance under the program. Fifty percent of 
the non-Federal share of eligible project costs could be made 
up by donations of land or materials.
     Authorized HUD to provide advice and technical 
assistance to States and local public bodies.
     Provided that grants could be made under the 
program only if HUD found that the assistance was needed for 
carrying out a unified or officially coordinated program, 
meeting its criteria, for the provision and development of 
open-space land. Required the program to be either a part of, 
or consistent with, the comprehensively planned development of 
the urban area.
     Prohibited the conversion to other uses of open-
space land acquired with assistance under the program, without 
prior approval by HUD.
     Authorized special 75 percent grants for the 
acquisition of undeveloped or predominantly underdeveloped land 
which, if withheld from development, would have special 
significance in helping to shape economic and desirable 
patterns of urban growth, including growth related to the 
development of new communities.
     Authorized not to exceed $560 million to be 
appropriated for the program prior to July 1, 1972.

Title VII--Urban Growth and New Community Development Act of 1970
     Made statements of policy, purpose and certain 
general findings, and declared that the Federal Government must 
assume responsibility for development of a national urban 
growth policy related to seven enumerated objectives dealing 
with such matters as economic growth, strengthened institutions 
of general government, balanced use of physical and human 
resources, etc.
     Phased out Title IV of the Housing and Urban 
Development Act of 1968 (P.L. 90- 448, August 1, 1968), except 
with respect to previously made new community guarantees, 
commitments to guarantee, or project approval.
  New Communities
     Established a Community Development Corporation 
within HUD, with a five- member Board of Directors one of whom 
was the Secretary. The President was to appoint a General 
Manager and the Secretary the remaining three members.
     Authorized the Corporation to guarantee the bonds, 
or other obligations issued by private developers and State 
land development agencies to help finance approved new 
community development programs. No obligation of a State land 
development agency could be guaranteed if the income from the 
obligation was exempt from Federal taxation, but grants could 
in such cases be made not exceeding the difference between the 
interest paid on the obligations and the interest on similar 
tax exempt obligations.
     Provided that the outstanding principal 
obligations guaranteed for a single project could not exceed 
(1) in the case of a State land development agency, 100 percent 
of HUD's estimate of the value of the real property before 
development and its estimate of the actual cost of the land 
development, or (2) in the case of a private new community 
development, the sum of 80 percent of HUD's estimate of the 
value of the land before development and 90 percent of its 
estimate of the actual cost of the land development.
     Limited the outstanding principal obligations 
guaranteed under the program to not more than $50,000,000 for a 
single project or $500,000,000 for all projects.
     Authorized the Corporation to make loans to 
qualified private new community developers and State land 
development agencies to assist them in making interest payments 
on indebtedness for approved new community development 
programs.
     Provided that the loans could not exceed the 
interest payable on indebtedness attributable to land 
acquisition or land development and outstanding during an 
initial development period (not over 15 years) which was prior 
to the time when land marketing had reached such a volume that 
continued development was possible without the benefit of 
further loans.
     Required repayment of loans on terms satisfactory 
to the Secretary, commencing when the development's progress 
and marketing permit, but not later than 15 years after the 
loan was made. Interest on the loans was to be at an annual 
rate equal to the average yield to maturity on all marketable 
U.S. obligations with a maturity of three or more years which 
were outstanding prior to the beginning of the six-month period 
during which the contract for the loan was entered into, plus 
one-eighth of 1 percent per annum.
     Limited the loans outstanding at any time for a 
single new community development program to not more than $20 
million. Limited total advances outstanding at any time for all 
projects to not more than $240 million.
     Authorized HUD to make grants to a public new 
community developer or a State or local public body to cover 
the cost of essential municipal services during the early years 
(not over three) of a new community development, and authorized 
appropriations.
     Required that guarantees and loans be made only 
for those new community development programs which HUD 
determined to represent an acceptable financial risk to the 
United States.
     Authorized HUD to establish a revolving fund to 
provide for (1) timely payment of liabilities resulting from 
guarantees, (2) the making of loans, and (3) repayment of 
obligations issued to the Secretary of the Treasury. Authorized 
HUD to issue obligations to the Secretary of the Treasury in 
amounts necessary.
     Authorized HUD to make supplementary grants to 
States and local public bodies carrying out various public 
facilities projects in support of new communities and assisted 
by grants under various Federal laws. Limited these 
supplementary grants to 20 percent of project costs and 
provided they could not bring total Federal grants above 80 
percent of cost.
     Authorized appropriations for supplementary grants 
up to $36 million for fiscal year 1971 and $66 million for each 
of the fiscal years 1972 and 1973, and additional sums as 
necessary thereafter. Made available the $30 million authorized 
for supplementary grants under Title IV of the Housing and 
Urban Development Act of 1968.
     Authorized HUD to provide technical assistance to 
developers in connection with planning and carrying out new 
community development programs.
     Authorized HUD, until June 30, 1975, to agree to 
provide aid to private new community developers and State land 
development agencies in support of certain planning work 
involved in developing new community development programs, up 
to two-thirds of the cost of the work.
     Authorized HUD to establish fees for guarantees 
and to make other reasonable charges for services, such as 
analysis of applications, appraisals and inspections, and other 
costs incurred.
     Authorized HUD upon specific authorization by the 
President, and with funds made available by the Congress, to 
carry out large scale new community development projects on 
Federal lands to serve as models for new community development 
by other developers. Waived the population limit (50,000) 
applicable to jurisdictions eligible to receive public facility 
loans under the Housing Amendments of 1955, in the case of 
public facilities serving new communities.
     Authorized national banks and Federal savings and 
loan associations to invest in obligations guaranteed under the 
new community program.
     Directed HUD to encourage the formulation of 
specific plans and programs for guiding and controlling urban 
growth within the States, regions or areas, and authorized 
grants for up to 75 percent of the cost of activities otherwise 
eligible under the planning grant program which were necessary 
to the development or implementation of plans or programs for 
guiding and controlling urban growth.

Development of Inner City Areas
     Amended the definition of ``urban renewal 
project'' in the urban renewal law to include the acquisition 
by a local public agency of land or space which was vacant, 
unused, underused, or inappropriately used, if HUD determined 
that the land or space could be developed at a reasonable cost 
without major residential clearance activities, and with full 
consideration to the preservation of beneficial features of the 
urban and natural environment for uses consistent with emphasis 
on housing for low- and moderate-income facilities. The 
acquisition of land under this provision was exempted from the 
provision in the urban renewal law which prohibits grants for 
urban renewal projects consisting of open land.

Rural Housing
     Raised the limits on the loans for rural housing 
for elderly persons from $300,000 to $750,000.
     Amended the definition of ``rural area'' for the 
purposes of the rural housing program authorized by Title V of 
the Housing Act of 1949 (P.L. 81-171, April 15, 1949) to mean 
any open country, or any place, town, village, or city which is 
not part of or associated with an urban area and which (1) has 
a population of not more than 2,500 persons, or (2) which has a 
population of more than 2,500 persons but not exceeding 10,000 
(previously 5,500) if it is rural in character.

    The Uniform Relocation Assistance and Real Property Acquisition 
                          Policies Act of 1970

                  (Public Law 91-646, January 2, 1971)

     Established policies governing land acquisition 
and relocation benefits for all Federal or Federally-assisted 
projects carried out by Federal agencies, and required that 
equivalent policies and benefits be adopted by States as a 
condition of eligibility for Federal assistance to State 
projects.

Relocation Benefits
     Provided that persons and businesses displaced as 
a result of land acquisition in connection with a covered 
project (or a project of concentrated code enforcement) be paid 
actual reasonable moving expenses, plus amounts equal to loss 
of tangible personal property and actual expenses of searching 
for a replacement business or farm.
     Provided, alternatively, that displaced persons 
could elect to receive payments in fixed amounts for moving 
expenses (not to exceed $300) and dislocation ($200). Owners of 
displaced businesses could elect to receive a fixed sum equal 
to the average annual earnings before taxes during the 
preceding two tax years, but not less than $2,500 nor more than 
$10,000. Such payments could not be made to businesses which 
could be relocated without substantial loss, or which were 
parts of commercial enterprises doing business in more than one 
location.
     Provided that, in addition, displaced homeowners 
were entitled to payments up to $15,000 toward the cost of 
acquiring decent, safe and sanitary homes, including incidental 
acquisition costs and increased costs of financing.
     Provided that persons displaced from rental 
property could receive payments toward the rental of decent, 
safe and sanitary housing for up to four years, but not to 
exceed $4,000, or alternatively payments toward the purchase of 
such a home up to $2,000, plus an additional $2,000 if equally 
matched by the home purchaser in making a downpayment.
     Required that agencies administering Federal or 
Federally-assisted programs or projects resulting in 
displacement provide a variety of specified relocation 
assistance services to displaced persons, including detailed 
information on the availability of decent, safe and sanitary 
housing for sale or rental in the area, information concerning 
Federal and State housing programs, and other services designed 
to minimize relocation hardships.
     Authorized agencies as a last resort, where 
adequate relocation housing could not be provided or located by 
other means, to provide such housing as a project expense.
     Made relocation costs and payments eligible 
project costs to be met or assisted by the Federal agency to 
the same extent as other project costs, except that up to July 
1, 1972, the Federal Government was to bear the full cost up to 
$25,000 in an individual case of displacement under a program 
assisted by grants or contributions.

Land Acquisition
     Required, where real property was to be acquired, 
that every effort be made to accomplish this expeditiously 
through negotiation. Required an appraisal of the property to 
be made in the presence of the owner, and that the agency make 
an offer to purchase at a stated price not less than the 
appraised value. Any decrease or increase in value attributable 
to the project or program could not be considered in the 
appraisal. Required that the basis of the price offered be 
explained to the owner in writing.
     Provided that owners could not be required to 
surrender possession prior to payment of the agreed purchase 
price, or deposit with a court pending condemnation of an 
amount not less than the fair market value of the property.
     Required insofar as possible that owners receive 
at least 90 days written notice to move.
     Prohibited agencies from bringing pressure to bear 
on owners to settle, by such means as accelerating or delaying 
negotiations or condemnation. Where acquisition of part of a 
property would leave an uneconomic remainder, required agencies 
to acquire the whole property.
     Required agencies acquiring real property to 
obtain a like interest in any buildings, structures and 
improvements on the land and to pay their fair market value.
     Required in cases of unsuccessful condemnation 
proceedings, that owners be compensated for their reasonable 
costs of litigation.

Laws Repealed
     Repealed specific provisions of law dealing with 
the same subject matter in a variety of individual programs, 
including relevant provisions of the statutes authorizing the 
urban renewal, public housing, model cities, and urban mass 
transportation programs.

               Lead-Based Paint Poisoning Prevention Act

                 (Public Law 91-695, January 13, 1971)

     Required HUD, in consultation with HEW, to develop 
and carry out a demonstration and research program to determine 
the nature and extent of lead-based paint poisoning in the U.S. 
and the methods by which these paints could effectively be 
removed from surfaces of housing to which children might be 
exposed.
     Required a report on findings and recommendations 
be submitted to Congress within one year after enactment.
     Authorized appropriations of $3.5 million during 
fiscal years 1971-73, to remain available until expended.

                Presidential State of the Union Message

                    (H. Doc. 92-1, January 22, 1971)

     Proposed enactment of six broad but special 
revenue sharing programs, in addition to general revenue 
sharing (already enacted). Three of the proposed programs were 
special revenue sharing for, respectively, community 
development, rural development, and transportation.
     Proposed a major reorganization of the Executive 
Branch, under which the 12 Cabinet Departments would be 
consolidated into 8, one of which would be a new Department of 
Community Development.

          Presidential Message on Urban Community Development

                     (H. Doc. 92-61, March 8, 1971)

Special Revenue Sharing
     Outlined the deficiencies found to be inherent in 
the system of categorical grant programs for community 
development purposes, and proposed in their place a new special 
revenue sharing program. Initially, this program was to cover 
activities previously carried out under urban renewal, model 
cities, water and sewer grants, and rehabilitation loans. 
Later, elements of the OEO community action programs were to be 
added. Proposed that the new program be activated on January 1, 
1972.
     Contemplated distribution formulas in the 
authorizing statute which would govern allocation of 80 percent 
of the funds, with specified amounts going to SMSA's, to cities 
of more than 50,000 population, and to small communities. 
Proposed also a ``hold harmless'' formula to assure that no 
recipient would be cut below the level of support previously in 
effect under the categorical grant approach. Proposed that 20 
percent of the funds would be available to HUD for 
distribution.

New Planning and Management Program
     Recommended a new $100 million planning and 
management assistance program, primarily to assist chief 
executives of States and other units of general government not 
only in planning and management of community development 
activities but also in connection with such areas as 
transportation, education, law enforcement, etc.

  Presidential Message on Special Revenue Sharing for Rural Community 
                              Development

                    (H. Doc. 92-66, March 10, 1971)

     Proposed a new program of special revenue sharing 
for rural development which would include, among other things, 
aid to rural water and waste disposal projects, but would not 
include the rural housing programs. Proposed that the new 
program would be originally administered in the Department of 
Agriculture, but ultimately was intended to be lodged (along 
with the community development program) in the proposed new 
Department of Community Development.

      Presidential Message on Special Revenue Sharing Program for 
                             Transportation

                    (H. Doc. 92-71, March 18, 1971)

     Proposed a new special revenue sharing program for 
transportation, to consolidate a number of categorical grant 
programs dealing not only with urban mass transportation but 
also Federal aids to airports and to highways (other than the 
interstate system).
     Proposed that the fund would be divided into two 
main elements general transportation and urban mass 
transportation. With respect to the latter, funds would be 
distributed to the States according to a formula based on the 
share of each in the national population living in SMSA's. 
Other formulas would govern further distribution of the funds, 
with the bulk going to cities with populations of more than a 
million.

           Presidential Message on Government Reorganization

                    (H. Doc. 92-75, March 25, 1971)

     Transmitted four bills to the Congress, intended 
to consolidate seven existing Cabinet Departments and a number 
of other agencies into four new Departments, namely, those of 
Natural Resources; Community Development; Human Resources; and 
Economic Affairs. Proposed a new Department of Community 
Development to operate through three major administrations: a 
housing administration, a community transportation 
administration, and an urban rural development administration. 
A fourth unit, the Federal Insurance Administration, would be 
set up administratively by the Secretary.
     Proposed that the new Department of Community 
Development absorb the present Department of Housing and Urban 
Development. Other components would include certain elements of 
the Economic Development Administration, and the Regional 
Commission programs from the Department of Commerce, the 
independent Appalachian Regional Commission, various Department 
of Agriculture programs, including water and waste disposal 
grants and loans, the Rural Electrification Administration and 
rural housing programs, the community action and special impact 
programs of the Office of Economic Opportunity, the public 
library construction grant program from the Department of 
Health, Education and Welfare, and certain disaster assistance 
functions handled by the Office of Emergency Preparedness and 
the Small Business Administration. Proposed transfer of most 
Federal highway programs and the Urban Mass Transportation 
Administration from the present Department of Transportation.
     Stressed the importance of decentralizing 
government activities as much as possible, including a reform 
of the field structure of the Federal Government.

           The Construction Industry Stabilization Committee

                (Executive Order 11588, March 29, 1971)

     Established the Construction Industry 
Stabilization Committee to assure general conformance of any 
increase in any wage or salary in the construction industry to 
the provisions of this order.
     Stated that its purpose, among others, was to 
establish an arrangement for the application of general 
criteria by an operating structure with a minimum of government 
involvement and sanctions within which labor and management 
could act to effectuate the stabilization of wages and prices 
consistent with and in furtherance of effective collective 
bargaining in the industry.
     Named the Secretary of HUD to chair the 
Interagency Committee on Construction.

        Appalachian Regional Development Act Amendments of 1971

                   (Public Law 92-65, August 5, 1971)

     Amended the Appalachian Regional Development Act 
of 1965 provisions for assistance to low- and moderate-income 
housing in the region to provide for the making of grants to 
nonprofit limited dividend or cooperative organizations or 
public bodies for planning and obtaining FHA mortgage financing 
under the Sections 221, 235 and 236 programs. Authorized HUD to 
make grants, grant commitments, and advances to nonprofit 
organizations and public bodies for site development costs, and 
offsite improvements when it found that these projects were 
essential to the feasibility of housing projects for low- and 
moderate- income families. Limited a grant to not more than 10 
percent of the cost of the housing project.
     Authorized the Appalachian Commission, in addition 
to the action of HUD, to provide or contract for information, 
advice and technical assistance with respect to construction, 
rehabilitation, and operation of low- and moderate-income 
housing in the region.
     Broadened the supplemental grant-in-aid authority 
to permit supplemental grants when funds available under basic 
Federal grant-in-aid programs were insufficient.

              Substantive Provisions in Appropriation Act

                  (Public Law 92-78, October 10, 1971)

     Continued the limitation stated in the fiscal 1968 
appropriation act (P.L. 90-121, November 3, 1967) that grants 
could not exceed 50 percent of eligible costs, but provided an 
exception for grants pursuant to Section 706 of the Housing Act 
of 1961, as amended (acquisition of interests), which could be 
up to 75 percent. (Language in the same form was included in 
the 1973 appropriation act.)

     Amendments to the Consolidated Farmers Home Administration Act

                (Public Law 92- 173, November 24, 1971)

     Authorized the insurance of loans made to be sold 
and insured in accordance with and subject to the provisions of 
that Act for disaster loans.

                 Job Development Investment Tax Credit

                 (Public Law 92-178, December 10, 1971)

     Authorized a 7 percent job development investment 
tax credit, generally effective August 15, 1971, with respect 
to domestic property. If a taxpayer should elect the special 
five-year amortization provided for pollution control 
facilities, rehabilitation of low-income housing, job training 
facilities or day care facilities, the property subject to the 
amortization election would not be eligible for the investment 
credit.

                        Farm Credit Act of 1971

                 (Public Law 92-181, December 10, 1971)

     Rewrote the statutory authority of the farm credit 
system to modernize and improve the authorizations and means 
for furnishing such credit and credit for housing in rural 
areas made available through the institutions constituting the 
farm credit system.
     Authorized Federal land banks and Production 
Credit Associations to make loans to rural residents for single 
family moderate price dwellings and their appurtenances not 
inconsistent with the general quality and standards of housing 
existing in, planned or recommended for the rural area where it 
was located. Housing loans could not exceed 15 percent of the 
total of all loans of a bank or association outstanding.
     Defined the term ``rural area'' for the purpose of 
housing loans to include any city or village having a 
population of 2,500 or less.

                       Amendments to Housing Laws

                 (Public Law 92-213, December 22, 1971)

     Authorized the Government National Mortgage 
Association for a period of six months, when HUD determined it 
necessary in order to avoid excessive discounts on Federally-
insured or guaranteed mortgages, to issue commitments to 
purchase, and to purchase, mortgages with principal amounts not 
more than 50 percent in excess of $22,000 ($24,500 for four-
bedroom or larger units).
     Made any entity for a basic categorical grant 
eligible for a supplemental grant to assist construction of 
public facilities in new communities.
     Prohibited the reduction of welfare payments to 
public housing residents who benefit from reduction in rents 
under the public housing law.

                         Foreign Assistance Act

                 (Public Law 92-226, February 7, 1972)

     Increased the ceiling on the total authority for 
guarantee of housing projects outside of the Latin American 
countries by $75 million.

                 National Center for Housing Management

                (Executive Order 11668, April 21, 1972)

     Directed HUD to call upon private citizens to form 
a private, not for profit National Center for Housing 
Management, to develop study and training programs for housing 
managers for private as well as Federally-aided housing, and 
systems whereby the results could be used by agencies and 
institutions throughout the country.

                      Amendments to Loan Programs

                  (Public Law 92-385, August 16, 1972)

     Directed the President to submit recommendations 
to the Congress by January 1, 1973, with respect to disaster 
emergency loans and Farmers Home Administration disaster 
housing loans, to provide equitable coverage, facilitate 
administration, and prevent misuse.
     Amended the Small Business Act and the 
Consolidated Farmers Home Administration Act of 1961 to provide 
additional financial assistance to victims of natural 
disasters, including loans for repair, rehabilitation and 
replacement to the extent of losses due to disaster, 
refinancing of outstanding indebtedness against properties 
totally or substantially destroyed; and cancellation of 
principal amounts subject to certain conditions and 
limitations. Provided that these benefits extend only to losses 
not compensated for by insurance or otherwise.
     Provided that loans made by the Farmers Home 
Administration under this authority could provide for deferral 
of principal or interest payments, or both, during the first 
three years of the loan term.
     Authorized the Small Business Administration to 
suspend for the lifetime of the obligee repayment of principal 
on such home loans for borrowers dependent upon disability or 
pension payments, if the Administrator determined that payment 
would constitute a substantial hardship.

                     Rural Development Act of 1972

                  (Public Law 92-419, August 30, 1972)

     Changed name of the Consolidated Farmers Home 
Administration Act of 1961 to Consolidated Farm and Rural 
Development Act.
     Authorized loans for essential community 
facilities, such as community centers, firehouses, industrial 
parks, ambulances, and fire and rescue equipment.
     Raised the $100 million ceiling on the total 
amount of grants that could be made for water and waste 
disposal project construction to $300 million and prohibited 
such grants if the project was inconsistent with 
multijurisdictional rural development plans, if any.
     Amended the definition of the terms ``rural'' and 
``rural area'' to provide that they not include any area in any 
city or town which had a population in excess of 10,000, except 
for the purposes of certain loans and grants for private 
business enterprises.
     Authorized grants up to $10 million annually for 
the preparation of comprehensive plans for rural development.
     Included a number of new or amendatory provisions 
concerning loans, grants and other forms of assistance to rural 
development undertakings, and providing special arrangements 
for the funding of these programs.

              Economic Opportunity Act Amendments of 1972

                (Public Law 92-424, September 19, 1972)

     Authorized a new rural housing development and 
rehabilitation program to assist in the alleviation of housing 
problems of low-income families in rural areas, through loans 
for the purchase of new housing, the repair, rehabilitation and 
purchase of existing housing, and to supplement existing 
Federal loan programs.
     Limited the repayment period of a loan to 33 
years.
     Required loans to bear interest at not less than 
one percent, but interest payments could be waived in whole or 
in part if it was determined that the applicant would otherwise 
be unable to participate in the program where the adjusted 
family income was not in excess of $3,700 per annum. Where the 
waiver was provided the borrower had to commit at least 20 
percent of his adjusted family income toward the mortgage debt 
service and other housing costs.
     Authorized the Director of OEO to make grants for 
the operating expenses of programs conducted by nonprofit 
community-based design and planning organizations to provide 
technical assistance and professional architectural and related 
services to housing, neighborhood facilities, transportation 
and other aspects of community planning and development to 
persons and community organizations or groups not otherwise 
able to afford such assistance.
     Required that priority be given to urban or rural 
poverty areas with substandard housing, substandard public 
service facilities, and generally blighted conditions.
     Added a new Title VII, entitled Community Economic 
Development. Established programs to assist community 
development and housing; creation of new training, employment 
and ownership opportunities which contribute to an improved 
living environment; and manpower training organizations which 
support housing and community development programs.
     Required programs given financial assistance to be 
coordinated with the model cities program, among other things.
     Directed HUD after consultation with the Director, 
to take all necessary steps:
          1. to assure that community development corporations 
        assisted under Title VII qualify as sponsors under the 
        low-income housing programs of HUD;
          2. to assure that land for housing and business 
        location and expansion was made available under urban 
        renewal where necessary; and
          3. to assure that funds were available under Section 
        701(b) of the Housing Act of 1954 (P.L. 83-560, August 
        2, 1954) to community development corporations assisted 
        under Title VII.
     Limited Federal grants under Title VII to not more 
than 90 percent of the cost of a program unless the Director 
determined that additional assistance was required.
     Authorized financial assistance, including 15 year 
loans up to $3,500, for low-income rural families where such 
financial assistance had a reasonable possibility of effecting 
a permanent increase in the income of such families or would 
contribute to the improvement of their living or housing 
conditions by assisting or permitting them to acquire or 
improve real estate, improve the operation of farms, or 
participate in cooperative associations which would enable them 
to supplement their incomes.
     Authorized the Director to provide financial 
assistance under Title VII by making or guaranteeing loans up 
to 30 years to community development corporations and to 
cooperatives, where the loan was not otherwise available on 
reasonable terms from private resources, and the amount of the 
loan, together with other funds available, was adequate to 
assure completion of the project.

                       Extension of HUD Programs

                 (Public Law 92-503, October 18, 1972)

     Removed the statutory limitation restricting 
annual contributions for public housing to amounts not greater 
than the annual yield on the cost of the project at the going 
Federal rate plus one percent. (As a result of this amendment, 
localities with old projects financed with low-interest 
obligations were made eligible to receive operating subsidies 
on an equal basis with those projects financed in recent years 
at higher rates of interest.)

                 State and Local Assistance Act of 1978

                 (Public Law 92-512, October 20, 1972)

     Directed the Secretary of the Treasury to pay out 
of the Trust Fund created by the law the entitlements provided 
by the law to the State and local governments.
     Provided that funds received by local governments 
could be used only for priority expenditures as defined, and 
that no State or local government could use directly or 
indirectly any part of the funds received under this provision 
as a contribution for the purpose of obtaining Federal funds.

                 Preparation of History of Public Works

                 (Public Law 92-564, October 25, 1972)

     Adopted a Joint Resolution approving the 
preparation and publication of the ``History of Public Works in 
the United States from 1776 to 1976'' by the American Public 
Works Association, and resolving that all public-works-oriented 
Federal agencies, and the Library of Congress, and the 
appropriate Congressional Committees were requested to 
cooperate in carrying this important project forward.

     Impoundment of Housing Subsidy and Community Development Funds

 (Speech by the Secretary of HUD, to the National Association of Home 
                       Builders, January 8, 1973)

     Announced that effective January 5, the 
Administration had stopped all new commitments under the 
housing subsidy programs, including low-rent public housing, 
water and sewer facility grants, open space land grants, and 
public facility loans.
     Stated that the freeze on new commitments for 
housing assistance would last until the existing programs had 
been reevaluated and that the ban on the listed community 
development activities would continue until they were included 
in a community development special revenue sharing program.
     Indicated that similar action would be taken with 
respect to urban renewal and model cities programs at the end 
of the fiscal year (June 30).

                   Reorganization Plan No. 1 of 1973

       (Compilation of Presidential Documents, January 26, 1973)

     Transferred to the President all functions 
previously vested in the Office of Emergency Preparedness and 
abolished the Office of Emergency Preparedness. (The President 
said as soon as the Plan became effective he would delegate the 
Office's former functions for preparedness for and relief of 
civil emergencies and disasters to the Department of Housing 
and Urban Development. See Executive Order 11725, June 27, 
1973)

                      Presidential Budget Message

       (Compilation of Presidential Documents, January 29, 1973)

     Repeated Presidential proposal for the creation of 
special revenue sharing programs, including one program of 
``Urban Community Development.''
     Announced that no new projects were to be approved 
``under several outmoded and narrowly focused community 
development programs which have not produced benefits that 
justify their costs.'' Discontinued programs included:

                  HUD Programs Suspended or Terminated
------------------------------------------------------------------------
             Program                    Action          Effective Date
------------------------------------------------------------------------
Rent supplements, sec. 235 and     Suspended........   1/5/73
 236, public housing.
College housing.................  Terminated........   Do.
Nonprofit sponsor assistance....   Suspended........   Do.
Public housing modernization....   Do...............   7/30/73
Model cities....................  Terminated........  Do.
Neighborhood facilities.........   Do...............   Do.
Open space land.................   Do...............  1/5/73
Water and sewer facilities......   Do...............   Do.
Urban renewal...................  Do................  7/30/73
Rehabilitation loans............  Do................  Do.
Public facility loans...........  Do................  1/5/73
Community development training     Do...............   7/30/73
 and fellowship grants.
Supplementary grants for new       Do...............  Do.
 communities.
------------------------------------------------------------------------

      Amendments to the Housing and Urban Development Act of 1968

                  (Public Law 93-4, February 2, 1973)

     Increased from $2.5 billion to $4 billion the 
limit on the face amount of flood insurance coverage authorized 
to be outstanding.

         Substantive Matters in Continuing Appropriations, 1973

                    (Public Law 93-9, March 8, 1973)

     Directed the President to report quarterly to the 
Congress on funds impounded, giving reasons for the 
impoundment, and estimated fiscal, economic and budgetary 
effect of the impoundments.

 House Subcommittee on Housing, Hearing on Impoundment of Housing Funds

                            (March 20, 1973)

     The Secretary of Housing and Urban Development 
said a thorough review and evaluation of programs were under 
way and that the President would submit policy recommendations 
within six months.

     Senate Subcommittee on Housing and Urban Affairs, Hearings on 
                              Impoundments

                            (April 3, 1973)

     Held oversight hearings on the housing and 
community development programs and Administration impoundment 
of funds for the programs.

           Presidential Veto of Rural Water and Sewer Grants

         (Compilation of Presidential Documents, April 5, 1973)

     Vetoed an Act to Restore the Rural Water and Sewer 
Grant program, saying that the rural water and sewer program 
launched eight years ago had been terminated January 1, 1973, 
because it forced the Federal taxpayer to pay for services that 
should be locally financed.
     Stated that a grave Constitutional question was 
raised by the bill's provisions mandating the spending of the 
full amount appropriated by Congress. (The House of 
Representatives sustained the President's veto, April 10, 1973)

             Presidential Submission on Disaster Assistance

          (Compilation of Presidential Documents, May 8, 1973)

     Submitted to the Congress the Disaster 
Preparedness and Assistance Act of 1973 which resulted from the 
review of disaster preparedness and assistance as called for by 
Public Law 92-385. Stated the major objective of the bill was 
to consolidate responsibility for disaster assistance and 
reduce the number of Federal agencies involved.
     Recommended a special Federal grant of $250,000 
for each State (as a transitional measure) to help the States 
increase their disaster preparedness and assistance 
capabilities.

       Amendment of the Housing and Urban Development Act of 1968

                    (Public Law 93-38, June 5, 1973)

     Increased the limitation on the face amount of 
flood insurance coverage authorized to be outstanding from $4 
billion to $6 billion.

                            Disaster Relief

                 (Executive Order 11725, June 27, 1973)

     Designated HUD to exercise disaster relief 
authorities formerly exercised by the Office of Emergency 
Preparedness under the Disaster Relief Act of 1970 and 
Executive Orders 11575, 11662, and 11678.
     Designated the Secretary of HUD to serve as 
Chairman of the National Council on Federal Disaster Assistance 
under Executive Order 11526.

                    GNMA Mortgage Purchase Authority

                 (Executive Order 11732, July 30, 1973)

     Delegated to the Secretary of Housing and Urban 
Development the power to exercise the functions of the 
President under Sections 301 and 305 of the National Housing 
Act relating to the purchase of mortgages by the Government 
National Mortgage Association in connection with its special 
assistance functions, and the determination that such action is 
in the public interest.

         Amendment of the Urban Mass Transportation Act of 1964

                  (Public Law 93-87, August 13, 1973)

     Increased the Federal share of capital grants and 
the contract authority under the Act, and permitted grants for 
technical studies relating to planning, engineering, design and 
evaluation of urban mass transportation projects.
     Authorized funds to be appropriated out of the 
Highway Trust Fund for the construction of highways connected 
to the Interstate system in portions of urbanized areas with 
high traffic density.
     Directed the Secretary of Transportation to make 
an evaluation, in cooperation with State Governors and local 
officials, of the portion of the 1972 National Transportation 
Report pertaining to public mass transportation, including all 
urban areas, and report to the Congress not later than July 1, 
1974.

          Presidential Message on Housing and Land Use Policy

      (Compilation of Presidential Documents, September 10, 1973)

     Urged action on legislation submitted, including 
the National Land Use Policy Act and the Better Communities 
Act.
     Reported that the six month study of government 
housing policies, which he had ordered in March, had been 
completed and that he planned to submit shortly a new set of 
housing program recommendations.

           Presidential Message to Congress on Housing Policy

      (Compilation of Presidential Documents, September 19, 1973)

Home Ownership
     Proposed legislation to make home ownership easier 
by: (1) increasing the maximum mortgage and loan amounts under 
FHA insurance programs; (2) removing the ceiling on interest 
rates on FHA and VA mortgages; (3) permitting, on an 
experimental basis, the Secretary of HUD to allow greater 
flexibility in repayment arrangements for Federally-insured 
loans; (4) allowing investors a tax credit on the interest they 
earn from residential mortgages; and (5) authorizing Federal 
reinsurance for purchase by private mortgage insurance 
companies.
     Proposed that incentives for savings and loan 
associations to finance housing construction be increased by 
the Federal Home Loan Bank Board initiating a new program of 
``forward commitments'' to savings and loan associations 
promising them loan money at future dates should they need it 
to cover commitments being made by them.
     Stated that HUD would reinstate the ``Tandem 
Plan'' under which GNMA provided money for FHA-insured 
mortgages at below-market interest rates where the mortgages 
covered new construction.
Low-Income Housing
     Attacked existing housing programs for low-income 
families, saying that (1) the Federal Government had, since 
1969, subsidized nearly 1.6 million units of new housing and 
over 400,000 units of existing and rehabilitated housing which 
would cost taxpayers an estimated $2.5 billion in each of the 
next few years and could cost close to a total of $50 billion; 
(2) Federal programs have produced some good housing, but they 
have also produced some of the worst housing in America; and 
(3) the existing approach of these programs was highly 
inequitable because they assisted only a few low income 
families and ignored others who pay taxes to support the 
programs but live in inferior older housing.
     Suggested direct cash assistance and the expansion 
of the existing experimental program to test additional 
techniques for administration.
     Recommended that there be a new approach under 
which the developer would make newly constructed units 
available at special rents for low-income families, and the 
government would pay the developer the difference between such 
rents and fair market rents. Recommended that the then-existing 
Section 23 program under which new and existing housing is 
leased for low-income families be administered in a way to 
carry out some of the principles of direct cash assistance, and 
stated that he would modify the January 5 suspension of housing 
programs to permit the Section 23 program to continue.

                Interim Report, Housing in the Seventies

                           (October 6, 1973)

     Delivered to Congress in draft form and given 
limited distribution, it was the result of a national housing 
policy review made by the Department of Housing and Urban 
Development, and was the basis for the President's message on 
housing policy of September 19, 1973.
     Reviewed the history of the development of the 
housing programs and the Federal activities less directly 
related to housing such as tax policy, regulation of mortgage 
financing, welfare assistance, credit policy, labor policy, 
equal housing opportunity, and environmental policy.
     Included the following statements and conclusions:
          (1) The nation's housing laws are a ``hodgepodge of 
        accumulated authorizations for some 46 unsubsidized 
        programs and some 20 which are subsidized * * * replete 
        with inconsistencies, conflicts and obsolete 
        provisions.'' There are also functional duplications 
        among HUD, VA and the Department of Agriculture.
          (2) Apparently the subsidy housing programs gave 
        little consideration to economic and social costs, 
        their equity aspects, and the overall impact on local 
        housing markets of subsidizing large numbers of newly 
        built units for lower-income families.
          (3) Although some 2.8 million subsidized dwelling 
        units were provided since 1937 for low- and moderate-
        income families, that was achieved at the cost of 
        serious program inefficiency and inequity, and the 
        costs were greater than the benefits to society.
          (4) The subsidy programs were inequitable as they 
        benefitted only a limited number of eligibles and 
        excluded all single persons less than 62 years of age.
          (5) Most subsidized housing program beneficiaries 
        could be served by a less expensive unit in the 
        existing housing stock or a cash transfer of lesser 
        value than the subsidy provided.
          (6) The subsidies involved in the programs, except in 
        low-rent public housing and the low-rent supplement 
        program, are not deep enough to serve most low-income 
        families.
          (7) The problems that arise from the operation of the 
        Section 235 subsidized sales housing program (and the 
        related Section 221(d)(2) program) are so serious that 
        the validity of the concept of home ownership for the 
        low-income occupants is questionable.
          (8) So long as foreclosures and acquisition losses 
        under the Section 235 program do not increase beyond 
        present estimates, the program can be regarded as 
        actuarially sound, but recent data indicates that the 
        program might become actuarially unsound.
          (9) The cost of the Section 236 subsidized rental 
        housing units is higher than for similar conventionally 
        built units, and the architectural fees involved are 
        often excessive.
          (10) Despite the rapid rise in home ownership costs, 
        Americans continue to purchase approximately the same 
        quality of housing as they did before the recent 
        increase in those costs.
          (11) Rentals increased much less rapidly than income 
        and less rapidly than the overall Consumer Price Index, 
        so that renters generally have not been adversely 
        affected.
          (12) Despite the rapid growth and initial 
        achievements of State housing finance agencies, their 
        future expansion is not completely assured and they 
        will encounter some serious problems in the future.
          (13) The presence of a large number of small builders 
        moving in and out of the construction industry tends to 
        make the supply of housing very responsive to cyclical 
        changes in demand, and the long-run supply appears to 
        be very responsive to long-run increases in demand. 
        (See also ``Critique of Housing in the Seventies,'' 
        February 22, 1974.)

 Agriculture-Environment and Consumer Protection Appropriation Act of 
                                  1974

                 (Public Law 93-135, October 24, 1973)

     Authorized the Secretary of Agriculture to sell, 
on an insured basis or otherwise, notes in the rural housing 
insurance fund and the rural development insurance fund, or 
certificates of beneficial ownership therein, to the Secretary 
of the Treasury, to the private market, or to such other 
sources as he may determine.
     Prohibited the making of rural housing grants 
under Section 504 of the Housing Act of 1949 (P.L. 81-171, July 
15, 1949).

            Amendment of Lead-Based Poisoning Prevention Act

                 (Public Law 93-151, November 9, 1973)

     Directed HUD, in consultation with the Department 
of Health, Education, and Welfare, to carry out a demonstration 
and research program to determine the nature and extent of the 
problem of lead-based paint poisoning, particularly in urban 
areas, including the methods by which the lead based paint 
hazard can be removed from residential housing.
     Directed HUD to establish procedures to eliminate 
as far as practicable the hazards of lead-based paint poisoning 
with respect to existing housing covered by an application for 
mortgage insurance, or housing assistance payments, and in all 
Federally-owned properties prior to the sale of such properties 
when their use is intended for residential use.
     Authorized HEW, in consultation with HUD, to 
establish a national lead-based poisoning advisory board and 
promulgate regulations for the establishment of advisory boards 
for each local program assisted under the Act.

             District of Columbia Rent Control Act of 1973

                 (Public Law 93-157, November 21, 1973)

     Authorized the District of Columbia Council to 
regulate and stabilize rents in the District.

                    Disaster Relief Functions to HUD

               (Executive Order 11749, December 10, 1973)

     Designated HUD to administer disaster relief, 
except (1) the authority to declare a major disaster, (2) the 
authority concerning the utilization of civil defense 
communications, and (3) the authority concerning food coupons 
for surplus commodities.
     Established the National Council on Federal 
Disaster Assistance, composed of policy level representatives 
of other Federal agencies and chaired by the Secretary of HUD, 
to advise and assist the Secretary in carrying out disaster 
relief functions.

                   America's Housing Needs: 1970-1980

   (Study by the Joint Center for Urban Studies of MIT and Harvard, 
                             December 1973)

     Estimated that 13.1 million American families were 
``housing deprived'' by reason of living in dwellings which 
were physically unsound, overcrowded, or too expensive 
(requiring more than 25-35 percent of income).
     Stated that a variety of programs, including use 
of existing housing, were needed to improve the situation, and 
that neighborhood rehabilitation should be given higher 
priority. (Study was partly financed by HUD.)

              Amendments to Foreign Assistance Act of 1961

                 (Public Law 93-189, December 17, 1973)

     Authorized the President to furnish assistance to 
help solve economic and social development problems in fields 
such as transportation, power, industry, urban development, and 
population planning and health.
     Made a minimum amount of the funds available for 
purposes of development assistance available for assistance in 
the development of cooperatives in the less developed 
countries. Increased the world-wide housing guarantee 
authority.

                Nursing Homes and Fire Safety Equipment

                 (Public Law 93-204, December 28, 1973)

     Authorized HUD to insure loans to nursing homes 
and intermediate care facilities to provide for the purchase 
and installation of fire safety equipment.

              Health Maintenance Organization Act of 1973

                 (Public Law 93-222, December 29, 1973)

     Amended Title XIII of the Public Health Service 
Act to provide assistance, including loan guarantees, to health 
maintenance organizations.
     Made mortgages guaranteed under that title 
eligible for inclusion by GNMA in a trust or pool used by GNMA 
to back securities it issues.

                   Federal Financing Bank Act of 1973

                 (Public Law 93-224, December 29, 1973)

     Created the Federal Financing Bank to coordinate 
financing of Federal and Federally-assisted borrowings from the 
public. Authorized the Bank to make commitments to purchase and 
sell, and to purchase and sell, any obligation which was 
issued, sold or guaranteed by a Federal agency. Required that 
such purchase be upon such terms as would yield a return at a 
rate which took into consideration the current average yield on 
outstanding marketable obligations of the United States or the 
Bank.
     Required the Secretary of the Treasury to approve 
the method, source, and timing of financing of obligations 
issued or sold by any Federal agency, except that his approval 
was not required with respect to (a) obligations sold under an 
Act of Congress which prohibited any guarantee of such 
obligations by the United States, and (b) obligations issued or 
sold by the Farmers Home Administration.
     Limited outstanding obligations issued by the Bank 
to $15 billion.
     Authorized the Bank to issue its obligations to 
the Secretary of the Treasury.
     Made obligations issued by the Bank subject to 
Federal taxation to the same extent as obligations of private 
corporations.
     Provided that the purchase by the Bank of the 
obligations of any local public body or agency had to be made 
upon such terms and conditions as necessary to avoid an 
increase in borrowing cost to the local body or agency (which 
increase results from the loss of the advantage of tax 
exemption of the obligations when sold in the private market.)
     Provided that the Federal agency guaranteeing 
obligations purchased by the Bank could contract to make 
periodic payments to the Bank to offset the costs to the Bank 
of purchasing obligations of local public bodies or agencies.

      Flood Disaster Protection Act of 1973 and Mobile Home Loans

                 (Public Law 93-234, December 31, 1973)

     Increased the limits of coverage authorized under 
the National Flood Insurance Program and required States or 
local communities, as a condition of future Federal financial 
assistance, to participate in the flood insurance program and 
to adopt adequate flood plain ordinances with effective 
enforcement provisions to reduce or avoid future flood losses.
     Required the purchase of flood insurance by 
property owners who were being assisted by Federal programs, or 
by Federally supervised, regulated or insured institutions in 
the acquisitions or improvement of land or facilities located 
on, or to be located in flood hazard areas.
     Made the flexible interest rate authority of the 
Secretary of Housing and Urban Development available for FHA 
insured loans which finance the purchase of mobile homes.

            Nondiscrimination in Federally Assisted Programs

               (Executive Order 11764, January 21, 1974)

     Directed the Attorney General to coordinate 
enforcement by Federal departments and agencies of Title VI of 
the Civil Rights Act of 1964, which prohibited discrimination 
on the ground of race, color or national origin in programs and 
activities receiving Federal financial assistance. (Superseded 
E.O. 11247.)

                Critique of ``Housing in the Seventies''

   (Committee Print by the Senate Subcommittee on Housing and Urban 
    Affairs, February 22, 1974; Congressional Record, March 8, 1974)

     Included the following highlights, as reported in 
a speech on the Senate Floor by the Chairman of the 
Subcommittee:
     The report ``Housing in the Seventies'' is not an 
adequate evaluation of Federal housing programs, nor an 
adequate base for formulating national housing policy. It does 
not contain justification for the past year's suspension of 
housing and community development activities. This is not a 
criticism of the work of many able persons who contributed 
material for the report.
     The report alleged that the subsidy programs take 
the wrong approach because the basic problem is not a housing 
but an income problem so that a better approach would be to 
provide direct cash assistance to poor people instead of 
building housing. This is simplistic and defective. As long as 
the supply of housing is insufficient, the cost of decent 
housing will remain out of the reach of low-income groups. To 
say that direct cash assistance will solve the housing problems 
of the poor while, at the same time, shutting off all Federal 
assistance for the production of housing, is to ignore that 
there is just not enough decent housing in this country now to 
go around. Direct cash assistance should be examined as one of 
the means of assistance but it cannot replace production 
programs.
     The charges that the programs are failures or 
defective turn out to be theoretical rather than factual. The 
facts indicate that the interest subsidy programs are not 
actuarially unsound, despite projected foreclosure rates that 
sound high and that reflect fraudulent practices which led to 
widespread scandals. A recent analysis indicates that the 
insurance fund is actuarially sound, and is projected to remain 
so. Additional support would be anticipated from expansion of 
counseling activities such as would be required under the 1974 
housing bill. The charge of widespread scandals has on close 
examination been less attributable to subsidized housing 
programs than to unsubsidized programs. The number of 
indictments for criminal activities related to the high 
incidence of foreclosures involved not only subsidized units 
but nonsubsidized operations under Sections 203 and 221(d)(2), 
which reflect laxity in program management rather than defects 
in the subsidy programs themselves.
     The frequent charge that the subsidy programs are 
inequitable because they serve only part of those who are 
eligible constitutes a faulty and unsound basis for terminating 
the program. First, it looks only at a portion of assistance 
given to needy families, excluding welfare, education and other 
aids. Also many families receive indirect aid from the housing 
programs. This charge of inequity is meaningless when no 
realistic alternative is presented. While it may be desirable 
to quadruple the Federal budget for housing in order to assist 
everyone on an equitable basis, as the direct cash assistance 
program implies, no budget proposal was made to carry out any 
such a program.
     The charge that Sections 235 and 236 are 
inequitable because they do not assist the lowest income 
families is without merit. The Congress did not intend those 
programs to reach the very poor. Low-rent public housing and 
rent supplements serve the lower-income group. The Sections 235 
and 236 programs provide an equity by assisting needy families 
at a somewhat higher income level who are not assisted by 
public housing and would not otherwise receive housing 
assistance from the government.
     Another major charge against existing housing 
programs concerns their total cost. It has been alleged that 
these programs will cost between $65 and $85 billion over the 
next 30 to 40 years. These estimates include public housing, 
which now shelters over 1 million of our lowest income 
families. It is estimated that public housing alone accounts 
for almost two-thirds of the total for all housing programs. At 
current budget levels, this would be about one-third of 1 
percent of the current annual Federal budget. Furthermore, the 
estimated public housing costs fail to take account of the 
offsetting value of a publicly owned stock of low-income 
housing after the capital debt on them has been paid off which 
will come to pass in about five years for the oldest projects.
     The factual data used in ``Housing in the 
Seventies'' to support its conclusion that the unit cost of 
subsidized housing is more than the unit cost of other housing 
is fragmentary and unconvincing. (Prepared by the Congressional 
Research Service at the request of the Subcommittee, 
Congressional Record, March 8, 1974.)

            Presidential Announcement on Mortgage Assistance

         (Compilation of Presidential Documents, May 10, 1974)

     Announced a four-point plan to provide more than 
$10 billion of additional mortgage money during 1974:
          (1) Additional GNMA tandem plan purchases (up to $3.3 
        billion) of mortgages with interest rates of 8 percent.
          (2) A new mortgage commitment program by the Federal 
        Home Loan Bank System for purchases (up to $3 billion) 
        of conventional mortgages from savings institutions 
        during the remainder of 1974. The mortgages would bear 
        interest rates of 8-3/4 percent.
          (3) Up to $4 billion in advances by the Federal Home 
        Loan Bank System to thrift institutions at a rate below 
        the System's current borrowing costs.
          (4) Funds for mobile home purchasers through the use 
        of GNMA mortgage backed securities program.

                      Disaster Relief Act of 1974

                   (Public Law 93-288, May 22, 1974)

     Repealed the Disaster Relief Act of 1970, except 
for certain provisions.
     Authorized the President to establish a program of 
disaster preparedness utilizing the services, supplies and 
facilities of all appropriate agencies and to provide technical 
assistance and grants to the States in developing and carrying 
out comprehensive disaster preparedness programs.
     Authorized the President to make contributions to 
the State or local governments to help repair, restore, 
reconstruct, or replace public facilities damaged or destroyed 
by a major disaster, and to make grants to help restore private 
nonprofit educational utilities, emergency medical and 
custodial care facilities damaged or destroyed by a major 
disaster.
     Authorized certain financial assistance to meet 
other disaster needs of individuals and local governments.
     Authorized the President to provide, either by 
purchase or lease, temporary housing, including but not limited 
to, unoccupied apartment dwellings, suitable rental housing, 
mobile homes, or other fabricated housing. Provided that during 
the first 12 months of occupancy no rentals were to be 
established for any such accommodations, and thereafter rentals 
were to be established based upon fair market value adjusted to 
take into consideration the financial ability of the occupants.
     Authorized the President to provide assistance in 
the form of mortgage or rental payments to or on behalf of 
individuals and families who, as a result of financial hardship 
caused by a major disaster, have received written notice of 
dispossession or eviction from a residence. Authorized private 
residential structures made uninhabitable by a major disaster 
to be repaired or restored with funds provided by the 
President, but no such assistance could be used for major 
reconstruction or rehabilitation of damaged property.
     Provided that any temporary housing acquired by 
purchase could be sold directly to occupants at fair or 
equitable prices; the President could also sell or otherwise 
make available temporary housing units directly to States, 
other governmental entities, and voluntary organizations.

    Presidential Agreement with Union of Soviet Socialist Republics

         (Compilation of Presidential Documents, June 28, 1974)

     Provided for cooperation in the field of housing 
and other construction. The agreement was to be implemented by 
(1) exchange of experts and advanced students, (2) exchange of 
scientific and technical information, (3) joint conferences and 
seminars, (4) joint research, and (5) other forms of 
cooperation. Provided for establishment of the Joint Committee 
on Cooperation in Housing and Other Construction to carry out 
the agreement.

                       Disaster Relief Functions

                 (Executive Order 11795, July 11, 1974)

     Delegated to the Secretary of Housing and Urban 
Development Presidential authority under the Disaster Relief 
Act of 1974, except the authority to declare emergencies and 
major disasters and certain other limited functions.

        Congressional Budget and Impoundment Control Act of 1974

                   (Public Law 93-344, July 12, 1974)

     Established a new Congressional budget and 
appropriations process and a procedure providing Congressional 
control over impoundment of funds by the Executive Branch.
     Created the Congressional Budget Office and 
established budget committees for both the House and the 
Senate.
     Provided that, beginning on October 1, 1976, the 
Federal fiscal year was to commence on October 1 of each year.
     Provided for Congressional consideration of 
proposed rescissions, reservations, and deferrals of budget 
authority, and for revised procedures by the Congress for 
consideration of the Federal budget and for transmittals by the 
President of requested amendments or revisions in the budget 
authority requested.

             Housing and Community Development Act of 1974

                  (Public Law 93-383, August 22, 1974)

Title I--Community Development Block Grants
     Constituted a fundamental change in the Federal 
Government's financial assistance to communities for their 
physical development and improvements, including the removal 
and prevention of slums and blight.
     Provided in place of specific categorical 
development programs, a single program of 100 percent grants 
(with certain related guarantees of loans) to communities for 
development activities on basically a formula basis.
     Gave to communities, within the relatively few 
restrictions of the Title, authority to formulate their own 
development plans and programs to be assisted, in place of 
conforming to Federal programs and decisions.
     Made funds available January 1, 1975.
  Programs Terminated
     Terminated these categorical programs as to 
commitment on January 1, 1975: open space urban beautification 
historic preservation grants; public facility loans; water and 
sewer and neighborhood facilities grants; urban renewal and NDP 
grants and model cities supplemental grants.
     Terminated authority to make rehabilitation loans 
as of one year after the date of enactment of Title I. 
(However, the Section 312 program was repeatedly extended until 
termination as of September 30, 1991, by the National 
Affordable Housing Act, P.L. 101-625, November 28, 1990.)
  Eligible Recipients of Community Development Grants
     Made States, cities, counties and other units of 
general local government (including certain designated types of 
public agencies) eligible recipients of community development 
block grants (and guarantee of loans).
     Made also certain private ``new community'' 
developers and citizen associations eligible.
  Activities Eligible for Community Development Grants
     Included, in general, the broad range of 
development activities in a community, including those 
permitted under the earlier categorical programs. Including: 
the acquisition, disposition or retention of real property 
which was blighted, deteriorated or inappropriately developed; 
appropriate for rehabilitation or conservation activities; or 
appropriate for conservation of open space or historical sites 
and public uses. Acquisition, construction, or installation of 
most types of public works, utilities, facilities, and site and 
other improvements. Code enforcement in deteriorating areas. 
Clearance, demolition, removal and rehabilitation of buildings 
and improvements, including interim assistance and financing of 
rehabilitation of privately owned property incident to other 
activities. Other related activities such as public services 
not otherwise available, relocation payments for those 
displaced, and administration of program. Payment of non-
Federal share of other Federal programs related to the 
development. Development of a comprehensive plan and the 
policy-planning- management capacity of the community.
  Application for Community Development Grants
     Required submission of an application for grants 
for HUD approval showing compliance with certain basis 
requirements. Required the application to contain: (1) a 
summary of a three-year plan which identified community 
development needs and objectives developed in accordance with 
areawide development planning and national urban growth 
policies and which demonstrated a comprehensive strategy for 
meeting those needs. (2) Formulation of a program which 
included activities to meet community development needs and 
objectives, indicated resources other than assistance under the 
title expected to be available to meet such needs and 
objectives, and took account of environment factors. (3) A 
description of a program to eliminate or prevent slums, blight, 
and deterioration where such conditions or needs existed, and 
provide improved community facilities and public improvements, 
including supporting health and social services where necessary 
and appropriate. (4) A housing assistance plan which accurately 
surveyed the condition of the community's housing stock and 
assessed the housing assistance needs of lower-income persons 
residing or expected to reside in the community. Specified a 
realistic annual goal for the number of units or persons to be 
assisted, including the mix of new, existing and rehabilitated 
units and the size and types of projects and assistance best 
suited to the needs of area lower-income persons. Indicated the 
general locations of proposed lower-income housing with a view 
to furthering revitalization, promoting greater housing choice 
and avoiding undue concentration of low-income persons, and 
assuring availability of adequate public facilities and 
services for such housing.
     Provided that in limited circumstances, 
requirements 1, 2, and 3 above could be waived in the case of 
smaller communities.
  Limited HUD Authority to Reject Applications
     Required that applications from ``metropolitan 
cities'' and ``urban counties'' be approved under that title 
unless: the description of community development and housing 
needs and objectives was plainly inconsistent with generally 
available information, the activities proposed were plainly 
inappropriate to meeting stated needs and objectives, or the 
application did not comply with the requirements of the title 
or other applicable law or proposes ineligible activities.
  Funds for Community Development Grants
     Authorized contract authority for three years of 
$8.4 billion for grants, with annual disbursement limitations 
of $2.5 billion in fiscal year 1974, $2.95 billion in fiscal 
year 1976, and $2.95 billion in fiscal year 1977. Provided 
additional amounts to meet the special needs arising out of the 
transition from the categorical programs to the new program.
  Distribution of Grant Funds
     Required that grant funds for community 
development be distributed throughout the country so that 80 
percent went to metropolitan areas (SMSAs) and 20 percent to 
other areas. Required within that division use of an objective 
formula basically for allocating funds to cities, counties, 
metropolitan and non-metropolitan areas, based on population, 
amount of housing over-crowding, and extent of poverty (counted 
twice).
     Provided that if they met application 
requirements, cities with populations of 50,000 or over and 
central cities of SMSAs had a statutory right or entitlement to 
formula funds. Provided that urban counties also were entitled 
to formula funds if they had power to undertake essential 
community development and housing assistance activities in 
areas that had a population of 200,000 or more, excluding 
metropolitan cities and units of general local government which 
elected to be excluded.
     Provided that in addition to formula entitlement 
which had to be paid to all metropolitan cities and urban 
counties, those cities and counties which had received a higher 
level of funding under the prior categorical programs would 
generally continue to receive this higher level (referred to as 
being ``held harmless'') during the first three years.
     Provided that communities which had no formula 
entitlement, and which had not been participating in urban 
renewal, model cities, or code enforcement, could apply for 
discretionary assistance out of funds not used for entitlement 
payments. Required that these funds be divided among SMSAs and 
non-SMSA areas of the various States based on relative matters 
as determined by formula.
  Guarantee of Loans
     Authorized HUD to guarantee and make commitments 
to guarantee notes or other obligations issued by units of 
general local government, or by public agencies designated by 
local governments, for the purpose of financing the acquisition 
or assembly of real property to serve or to be used in 
community development activities which were to receive grants 
under Title I. Provided that those obligations were to be 
taxable or tax free at the option of the issuer; if taxable, 
HUD would make grants to the issuer for up to 30 percent of net 
project cost.
  Requirements Community Must Meet
     Required that the community receiving funds comply 
with Civil Rights Acts and the special nondiscrimination 
provisions of this title; assure adequate citizen 
participation; meet A-95 planning review requirements for the 
application; and meet annual performance reporting 
requirements, including an assessment of the relationship of 
its past activities to the title's and the community's stated 
objectives. The grant amount for the community was to be 
subject to appropriate HUD adjustment on the basis of these 
reports.
     Provided that ``impact statements'' under the 
National Environmental Policy Act of 1969 were not required at 
the time applications were reviewed. Instead, recipients had to 
prepare these statements on specific projects having major 
impacts on the environment before they committed funds to those 
projects, and had to certify compliance to HUD before funds 
were released.

Title II--Assisted Housing
     Rewrote the United States Housing Act of 1937 to 
make changes in the public housing program, to provide 
additional annual contributions contract authority, and to 
authorize a new lower-income housing assistance program.

Major Changes in Public Housing
     Deleted requirements for (1) a gap of at least 20 
percent between the highest income limits for admission and the 
lowest unassisted rents, and (2) income limits for continued 
occupancy in projects.
     Amended the definition of family income and added 
a definition of ``very low income.''
     Amended the definition of family to permit 
occupancy by two or more single elderly, disabled, or 
handicapped individuals living together, or one or more such 
individuals living with another person determined essential to 
their well-being.
     Changed requirements with respect to minimum rents 
so that every family in regular public housing would be 
required, regardless of the size of its income, to contribute 
at least 5 percent of its gross income to rent; if the family 
received a welfare payment a part of which is specifically 
designated for housing, the family's minimum rent would be the 
higher of 5 percent of gross income or the amount so 
designated.
     Provided that increased rents required as a result 
of these amendments, other than the welfare payment provision, 
were to be phased in at a rate of not more than $5 every six 
months.
     Required the aggregate minimum rental required to 
be paid in any year by families in any project administered by 
a public housing agency receiving operating subsidies to be an 
amount at least equal to 20 percent of the sum of the income of 
all such families.
     Required public housing agencies to establish (1) 
tenant selection criteria to assure an income mix in projects 
(but waiting for higher- income tenants where lower- income 
tenants were available was not to be permitted), (2) procedures 
for prompt rent payments and evictions for nonpayment, (3) 
effective tenant-management relationship to assure tenant 
safety and adequate project maintenance, and (4) viable 
homeownership opportunities. Required that at least 20 percent 
of families in any project placed under annual contributions 
beginning after the effective date of the requirement have 
incomes not in excess of 50 percent of area median incomes.
     Permitted a public housing agency to sell a low-
income housing project to its low- income tenants without 
affecting the Secretary's commitment to pay annual 
contributions with respect to the projects.
     Reauthorized payments of operating subsidies to 
public housing agencies, but required HUD to establish 
standards for payments on the basis of a formula representing 
operation of a prototype well-managed project, taking into 
account various characteristics of projects and residents.
  Section 8 Housing Assistance Program
     Authorized a new low-income housing assistance 
program by Section 8 of the amended United States Housing Act 
of 1937, replacing the former Section 23 which authorized the 
``Section 23 leasing program.''
     Authorized assistance by HUD through ``assistance 
payments contracts'' on behalf of eligible families occupying 
new, substantially rehabilitated or existing rental units. 
Authorized HUD to contract directly with private owners or 
public housing agencies which agreed to construct or 
substantially rehabilitate housing.
     Provided that in the cases of existing units, 
public housing agencies contract with owners, except that HUD 
was authorized to do so directly where no public housing agency 
had been organized or where it determined a public housing 
agency was unable to implement the program.
     Provided eligible families were those who, at the 
time of initial renting of unit, had total annual incomes not 
in excess of 80 percent of area median income with adjustments 
for smaller and larger families, but HUD could establish higher 
or lower income ceilings if it found such variations necessary 
because of prevailing levels of construction costs, unusually 
high or low family incomes, or other factors.
     Required that at least 30 percent of the families 
assisted under all of the annual contract authority allocations 
be families with gross incomes not in excess of 50 percent of 
area median income, subject to adjustment.
     Required that assistance payments contracts must 
specify the maximum monthly rent which was to be charged for 
each assisted unit. Provided that the maximum monthly rent 
could not exceed by more than 10 percent the fair market rental 
established by HUD periodically for existing or newly 
constructed rental dwelling units in the market area suitable 
for occupancy by the assisted person, except that the maximum 
rent could be up to 20 percent higher than the fair market 
rental where HUD determined that special circumstances 
warranted the higher rent.
     Required aided families to contribute between 15 
percent and 25 percent of their total income to rent as 
prescribed by HUD. Established a 15 percent maximum for certain 
large families.
     Established the amount of assistance provided with 
respect to a unit as an amount equal to the difference between 
the established maximum rent for the unit and the occupant 
family's required contribution to rent.
     Provided that an assistance payments contract 
could be as long as 15 years in the case of an existing unit 
and as long as 20 years in the case of a new or rehabilitated 
unit (or up to 40 years where the project was owned by, or 
financed by a loan or guarantee from, a State or local agency).
     Provided that owners of new or substantially 
rehabilitated units assume all ownership, management, and 
maintenance responsibilities, including tenant selection and 
termination of tenancy. Owners of existing units also were to 
select tenants but selections were subject to annual 
contributions contract requirements, and public housing 
agencies had the sole right to give notice to vacate.
     Provided that the assistance payments could be 
made only with respect to a dwelling unit under lease for 
occupancy by a family determined to be a lower-income family at 
the time of the initial occupancy, except that payments could 
be made with respect to unoccupied units for a period not 
exceeding 60 days under certain circumstances.
     Made the construction or substantial 
rehabilitation of units to be assisted eligible for financing 
with mortgages insured under the National Housing Act. Provided 
that assistance payments contracts could be pledged by owners 
of the dwelling units as security for any loan or obligation in 
connection with a project to be assisted by the payments, if 
approved by HUD.
  Housing for the Elderly and Handicapped
     Directed HUD to consult with the Department of 
Health, Education, and Welfare to assure that special projects 
for the elderly or the handicapped under the public housing 
program met acceptable standards of design, and provided 
services and management, consistent with the needs of the 
occupants, and were in support of and supported by applicable 
State and area plans.
     Amended the Section 202 direct loan program 
(Housing Act of 1959) for housing for the elderly and 
handicapped as follows: loans were to be made at an interest 
rate equal to the Treasury borrowing rate (plus adequate 
allowances for administrative costs and probable losses) in 
place of a fixed 3 percent rate.
     Authorized HUD to obtain additional funds for the 
program by issuing notes for purchase by the Treasury.
     Limited loans to the authority provided for the 
year in appropriation Acts.
     Required HUD to consider the availability of 
assistance under the new Section 8 program when considering 
Section 202 project feasibility.
     Required HUD to assure that both 202 and Section 8 
projects serve both low- and moderate-income families in a mix 
appropriate for the area and viable project operation.
  Section 235 Interest Reduction Payments
     Set family income limits at 80 percent of median 
income for the area with adjustments by HUD, in place of limits 
related to public housing admission limits.
     Increased the limits on the amounts of individual 
mortgages.
  Section 236 Interest Reduction Payments
     Provided that rents for up to 20 percent of the 
units in a Section 236 project could be reduced to as little as 
the cost of utilities of the units where tenants could not pay 
the subsidized rental charge with 25 percent of their income.
     Provided authority for contracting by HUD to pay 
additional subsidy amounts to a sponsor to cover his subsequent 
increased operating costs as a result of increased utility 
charges and property taxes.
     Set income limits at 80 percent of median income 
for the area, with adjustments by HUD. Required that at least 
20 percent of funds were to be allocated to projects for the 
elderly or handicapped, and 10 percent of the funds for 
rehabilitation projects.
     Authorized HUD to contract with State or local 
agencies to monitor the management of assisted projects.
  Local Housing Assistance Plans
     Required HUD, if a local governing body had an 
approved ``housing assistance plan,'' upon receiving an 
application for housing assistance under the public housing 
program, the Sections 235 and 236 interest reduction payments, 
the rent supplement program, or the housing for elderly or 
handicapped direct loan program, to notify the local governing 
body that the application was under consideration, and give 
that body the opportunity, during the next 30 days, to object 
to approval of the application on the grounds that the 
application was inconsistent with its housing assistance plan.
     Provided that if objection was raised, HUD could 
not approve the application unless HUD determined it was 
consistent with the plan. If so determined it should notify the 
local governing body of the determination and the reasons in 
writing. If no objection was received, HUD could approve the 
application unless it found it was inconsistent with the 
housing assistance plan.
     Provided that a housing assistance plan could be a 
plan submitted with an application for community development 
assistance under Title I of the Housing and Community 
Development Act of 1974, or in case there was no such plan, a 
housing assistance plan approved by HUD.
     Excepted certain applications for assistance from 
the foregoing requirements.
  Allocation of Housing Assistance
     Required that the amount of housing assistance 
allocated to non-metropolitan areas in any fiscal year be not 
less than 20 nor more than 25 percent of the total amount of 
such assistance. In allocating the assistance, directed HUD to 
consider the relative needs of different areas as reflected in 
data as to population, poverty, housing overcrowding, housing 
vacancies, amount of substandard housing, or other measurable 
conditions.
     Directed HUD to reserve such housing assistance 
funds as deemed necessary for use in connection with new 
community developments, and authorized HUD to reserve such 
assistance funds as it deemed appropriate for use by a State or 
agency of a State.
     Mortgage Credit Assistance
     Increased the dollar limits on the amounts of 
mortgages on one- to four-family homes as well as the dollar 
limit per unit where the mortgages financed multifamily 
projects. Eliminated dollar limits on multifamily project 
mortgages.
     Authorized HUD, on a demonstration basis, to 
insure mortgages, advances, or loans, upon the request of 
mortgagees, on a coinsurance basis. Directed HUD to report to 
Congress on the program not later than March 1, 1975, and 
annually thereafter.
     Directed HUD to promote the use of energy saving 
techniques through FHA minimum property standards for newly 
constructed housing financed with FHA insured mortgages.
     Extended compensation for structural defects in 
existing homes to cover two-family homes, and made compensation 
available to owners of properties located in older, declining 
urban areas which were covered by mortgages insured under 
Sections 203 or 221 during the period August 1, 1968 through 
December 31, 1972. To quality for compensation, a defect must 
so seriously affect use and livability as to create a serious 
danger to the life or safety of the inhabitants.
     Authorized HUD to insure on an experimental basis 
under any of the mortgage insurance provisions of Title II of 
the National Housing Act mortgages and loans with provisions 
for varying rates of amortization corresponding to anticipated 
variations in family income. Limited this authority to one 
percent of the total dollar amount of all mortgages insured 
under Title II.
  Property Improvement and Mobile Home Loan Insurance
     Increased the dollar limit on property improvement 
loans and the limits on the maturity of such loans.
     Permitted the insured loans to cover fire safety 
equipment, energy conserving improvements, or the installation 
of solar energy systems.
     Authorized insurance for loans financing the 
purchase of mobile home lots and preparation of the lots.
     Authorized lower downpayments for unsubsidized 
homes purchased with mortgages insured by FHA under its Title 
II mortgage insurance programs.
  Multifamily Housing Mortgage Insurance
     Raised the limit on the amount of a management 
cooperative housing mortgage based on loan to value. Authorized 
insurance of mortgages financing the purchase of existing 
multifamily projects or refinancing of mortgages on existing 
projects.
     Authorized insurance of mortgages on ``dormitory-
type'' projects.
     Made public housing agencies eligible for insured 
mortgages of projects under Section 221(d)(3) of the National 
Housing Act, if the project received assistance under the new 
Section 8 (U.S. Housing Act of 1937) lower-income housing 
assistance program. Made interest paid on such mortgages 
subject to income tax.
     Authorized FHA insurance for supplemental loans 
for repairs, improvements or additions to multifamily projects 
or health facilities not covered by FHA-insured mortgages. 
Increased the limit on the amount of an FHA-insured mortgage 
financing land development by raising the loan-to-value ratio 
on such mortgages to the sum of 80 percent of the estimated 
value of the land before development and 90 percent of 
estimated cost of development.
     Added provisions to the National Housing Act which 
made it clear that HUD could finance the sales of acquired 
projects to cooperatives with 100 percent purchase money 
mortgages computed on the basis of the use of the property as a 
cooperative, and that HUD could repair the projects prior to 
such sale.

Comprehensive Planning
  Planning Grants
     Amended Section 701 of the Housing Act of 1954 
(P.L. 83-560, August 2, 1954), which authorized grants for 
comprehensive planning, to extend aid for developing management 
capability.
     Authorized HUD to make planning grants to States 
for planning assistance to local governments; to States for 
State, interstate, metropolitan, district, or regional 
activities; to cities of 50,000 population or more; to urban 
counties as defined in Title I of the Housing and Community 
Development Act of 1974; to metropolitan areawide 
organizations; to Indian tribal groups or bodies; and to other 
governmental units or agencies having special planning needs.
     Provided that activities eligible for grants 
include those necessary (1) to develop and carry out a 
comprehensive plan, (2) to develop and improve the management 
capability to implement such a plan, and (3) to develop a 
policy-planning evaluation capacity so that the recipient could 
more rationally determine its needs, set long-term goals and 
short-term objectives, devise programs and activities, and 
evaluate the progress.
     Required each recipient of assistance to carry out 
ongoing comprehensive planning which would make provision for 
citizen participation.
     Required comprehensive plans to involve a housing 
element and a land-use element.
     Authorized grants to be made on an annual basis if 
certain specified requirements were met, including not 
exceeding two-thirds of the estimated cost of the work for 
which they were made.
     Authorized use of appropriated funds by HUD for 
studies, research, and demonstration projects of the techniques 
and methods for comprehensive planning, and for studies and 
research related to needed revisions in State laws governing 
local governmental operations. Authorized grants to be made to 
organizations of public officials representative of 
jurisdictions within a metropolitan area for studies, 
collection of data and the development of metropolitan, 
regional and district plans and programs.
  Training and Fellowship Programs
     Amended Title VIII of the Housing and Urban 
Development Act of 1967 (P.L. 90-19, May 25, 1967), which 
authorized assistance through training and fellowships, to 
include not only urban and housing specialists as eligible for 
fellowships but also those with a ``general capacity in urban 
affairs and problems.''
     Authorized HUD to make grants to institutions of 
higher education to assist them in planning, developing, 
strengthening, improving or carrying out programs or projects 
for the preparation of graduate or professional students to 
enter the public service.
     Authorized grants to assist States and localities, 
in cooperation with educational institutions and interested 
organizations, to (1) develop programs which would provide 
special training for community development activities, and (2) 
support State and local research needed with housing programs, 
public improvement programming, code problems, efficient land 
use, urban transportation and similar community development 
problems. Authorized HUD to make grants to institutions of 
higher education to assist them in planning, developing, 
strengthening, improving, or carrying out programs (1) for the 
preparation of professional students in the fields of city and 
regional planning and management, housing and urban affairs, or 
(2) for research into, or development or demonstration of, 
improved methods of education for those professions.

Rural Housing
     Amended Section 504 of the Housing Act of 1949 
(P.L. 81-171, July 15, 1949), to make ``rural dwellings'' 
rather than just farm dwellings, eligible for rehabilitation 
loans and grants or a combination loan and grant.
     Expanded the definition of ``rural area'' to 
include places with a population in excess of 10,000 but less 
than 20,000 which were not within a SMSA, and which had a 
serious lack of mortgage credit as determined by the 
Secretaries of Agriculture and Housing and Urban Development.
     Made public agencies eligible to purchase building 
sites, the development of which was financed by loans by the 
Secretary of Agriculture, for housing low- and moderate-income 
families; the loans could be made for building sites for 
housing for low- and moderate-income families assisted under 
any Title V program or under any other law. (Previously, the 
housing had to be assisted under the FHA Sections 235 or 236 
program, or Section 521 of the Housing Act of 1949.)
     Authorized the Secretary of Agriculture to make 
and insure loans to provide rental or cooperative housing and 
related facilities for persons and families of low income who 
resided in multifamily housing projects. Authorized assistance 
payments to be made to the owners of the housing in order to 
make it available to low-income occupants at rentals 
commensurate to income and not exceeding 25 percent of income.
     Authorized the Secretary to make loans to public 
or private nonprofit organizations for the necessary expenses 
of planning and obtaining financing for, the rehabilitation or 
construction of housing for low- income individuals or families 
under any Federal, State or local program which could be used 
in rural areas.
     Authorized the Secretary of Agriculture to make 
and insure loans to persons and families of low- or moderate-
income to assist them in purchasing dwelling units in 
condominiums located in rural areas.
     Authorized loans for the construction of 
multifamily projects to be sold as condominiums.
     Made the various rural housing programs applicable 
to mobile homes on the same terms as under HUD mortgage 
insurance.

National Mobile Construction and Safety Standards Act of 1974
     Directed HUD, after consultation with the Consumer 
Product Safety Commission, to establish appropriate Federal 
mobile home construction and safety standards.
     Directed HUD to appoint a National Mobile Home 
Advisory Council with which to consult prior to establishing, 
amending, or revoking any mobile home construction or safety 
standard.
     Authorized the research, testing, development, and 
training necessary to carry out this title and authorized 
grants to be made for this purpose.
     Prohibited the use of the mail and of interstate 
commerce to sell or lease mobile homes which did not meet the 
promulgated safety standards. Made other provisions for 
enforcement of the standards.
Consumer Home Mortgage Assistance Act of 1974
     Amended laws governing the lending and investment 
powers of Federal savings and loan associations and national 
banks to enable them to provide more and broader consumer home 
mortgage and credit assistance.
     Authorized an increase, under FHLBB regulations, 
of the maximum loan amount for single-family dwellings from 
$45,000 to $55,000, with a 50 percent increase for Alaska, 
Guam, and Hawaii.

Miscellaneous
  National Housing Goal
     Added provisions to Title XVI of the Housing and 
Urban Development Act of 1968 (P.L. 90-448, August 1, 1968), 
pertaining to the national housing goal, stating that the 
Congress finds that policies designed to contribute to the 
achievement of the national housing goal have not directed 
sufficient attention to the preservation of existing housing 
and neighborhoods. Stated that if the national housing goal is 
to be achieved, a greater effort must be made to encourage the 
preservation of existing housing and neighborhoods.
  State Housing Finance and Development Agencies
     Authorized HUD to guarantee obligations issued by 
State housing finance or State development agencies to finance 
development activities for the provision of housing and related 
facilities and the revitalization of slum and blighted areas.
     Authorized HUD to make grants to such agencies to 
cover up to one-third of the interest payable on obligations of 
the agencies for those purposes, and made the interest subject 
to Federal income tax.
     Authorized HUD to provide technical assistance to 
State housing finance or State development agencies to assist 
them in connection with planning and carrying out development 
activities.
  New Communities
     Changed the name of the Community Development 
Corporation to New Community Development Corporation, and 
increased the number of directors from five to seven.
     Established the amount of interest differential 
grants by the Corporation to State or local public agencies at 
an amount equal to 30 percent of the interest paid on agency 
obligations. Permitted waste disposal installations and 
community or neighborhood central heating or air-conditioning 
systems to be financed within the proceeds of loans guaranteed 
by the Corporation.
  Experimental Housing Allowance Program
     Expanded the existing HUD experimental housing 
allowance program and authorized increased appropriations.
     Authorized HUD to undertake, on an experimental 
basis, programs to demonstrate the feasibility of providing 
housing allowance payments to or on behalf of participating 
families, to assist families in meeting rental or homeownership 
expenses. No payments could be made after July 1, 1985, and no 
new contracts for payments could be entered into after January 
1, 1975.
  Federal Home Loan Mortgage Corporation and Federal National Mortgage 
        Association
     Raised the limit on the outstanding balance of a 
conventional mortgage eligible for purchase by FHLMC and FNMA 
from 70 percent to 80 percent of the value of the property 
securing the mortgage. (The law specifies cases where this 
limit does not apply.)
     Provided that the servicing of mortgages purchased 
by FHLMC could be performed by the seller, or by any financial 
institution qualified by the law to be a seller to FHLMC, or by 
a mortgagee approved by HUD for participation in any mortgage 
insurance program under the National Housing Act.
     Raised the limit on the aggregate amount of 
conventional mortgages in FNMA's portfolio which had been 
originated more than one year prior to their purchase from 10 
percent to 20 percent of all conventional mortgages purchased.
  Government National Mortgage Association
     Raised the limit on the amount per residential 
unit of a mortgage which could be purchased by GNMA from 
$20,000 to $33,000, or such higher amount up to $38,000, as HUD 
might specify for high-cost areas.
  Nondiscrimination on Account of Sex
     Prohibited discrimination on account of sex, in 
connection with any Federally-related mortgage loan, or Federal 
insurance, guaranty, or other assistance.
  National Institute of Building Sciences
     Authorized establishment of a nonprofit, 
nongovernmental instrument to be known as the National 
Institute of Building Science.
     Directed the Academies-Research Council, along 
with other agencies and organizations knowledgeable in the 
field of building technology, to advise and assist in the 
establishment of the Institute.
     Provided that the Institute operate in general 
areas relating to building regulations. Authorized 
appropriations to provide the Institute with initial capital.
  Urban Homesteading
     Authorized HUD to provide assistance to urban 
homesteading programs carried out by State or local 
governments, or by State or local agencies.
     Authorized approval of an urban homesteading 
program under which an unoccupied residence was to be 
transferred to an individual or family without any substantial 
consideration and where the individual or family agreed to: (1) 
occupy the residence not less than three years; (2) make 
repairs required to meet minimum health and safety standards 
for occupancy prior to occupancy; (3) make necessary repairs 
and improvements to the property to meet standards for decent, 
safe and sanitary housing within 18 months after occupancy; and 
(4) to permit reasonable periodic inspections to determine 
compliance with the agreement.
     Authorized HUD to transfer without payment one- to 
four-family unoccupied residences to which it held title to 
State or local governments or agencies for urban homesteading 
programs it had approved. It could also provide technical 
assistance to the State and local governments or agencies and 
to participants in the programs.
  Counseling and Technical Assistance
     Broadened HUD authority with respect to counseling 
to authorize provision of counseling to homeowners and tenants 
generally, and to homeowners assisted under Section 235 
specifically. This counseling could relate to property 
maintenance, financial management, and other matters to help 
them in improving their housing conditions and in meeting their 
responsibilities.
     Made local public housing agencies eligible for 
loans from HUD for planning Section 235 housing and other 
Federally-assisted housing for low- or moderate-income 
families. Authorized HUD to provide advice and technical 
assistance to communities, particularly small communities, in 
planning, developing, and administering Community Development 
Programs.
  Interstate Land Sales
     Amended the Interstate Land Sales Full Disclosure 
Act: (1) to make its provisions applicable to land in a foreign 
country; (2) to exempt from the provisions of the Act the sale 
or lease of land zoned for industrial or commercial development 
if prescribed requirements were met; and (3) to permit 
revocation of a contract for the purchase or leasing of a lot 
within a period of three business days (previously 48 hours) 
under certain conditions, and deleted a provision to permit 
waiver of this revocation right.
  Demonstrations of Solar Energy and Housing Design
     Authorized HUD to carry out demonstrations to 
determine the economic and technical feasibility of utilizing 
solar energy for heating or cooling residential housing, 
including demonstrations of new housing design or structure 
involving the use of solar energy. Authorized HUD to undertake 
special demonstrations to determine the housing design, 
structure, and facilities most effective to meet the needs of 
the elderly, the handicapped, the displaced, single 
individuals, broken families, and large households.
  Flood Insurance
     Required Federally-regulated lending institutions 
to notify those who borrowed for the purchase or lease of a 
home in a designated flood area that the housing was located in 
an area having special flood hazards.
     Made eligible for flood insurance at special 
premium rates communities which had made adequate progress, 
acceptable to HUD, on the construction of a flood protection 
system.
  Additional HUD Assistant Secretaries
     Increased the number of level IV Assistant 
Secretaries authorized for the Department of Housing and Urban 
Development from six to eight.
  Condominium and Cooperative Study
     Directed HUD to make a study of condominiums and 
cooperatives and report within one year on problems, 
difficulties, and abuses.
  Study of Direct Federal Financing
     Directed the HUD Secretary and the Secretary of 
the Treasury to study the feasibility of financing the Section 
236 (multifamily interest- reduction payment) program and the 
housing assistance program for State housing finance and 
development agencies authorized above, through various 
financing methods, including direct loans from the Federal 
Financing Bank.

          Solar Heating and Cooling Demonstration Act of 1974

                 (Public Law 93-409, September 3, 1974)

     Directed the HUD Secretary and the Administrator 
of the National Aeronautics and Space Administration to carry 
out a program for the development and demonstration of solar 
heating systems and for the development and demonstration of 
combined solar heating and cooling systems for use in 
residential dwellings.
     Directed similar activities to be performed with 
respect to apartment buildings, office buildings, factories, 
crop-drying facilities, public buildings, and other 
nonresidential, commercial, or industrial buildings.
     Directed the Director of the National Science 
Foundation to conduct a program of research relevant to (1) the 
improvement of solar heating components and systems, and (2) 
the development and application of combined solar heating and 
cooling systems.
     Gave the HUD Secretary specific authorities and 
directions, and coordination, monitoring, and liaison 
functions.

             Emergency Home Purchase Assistance Act of 1974

                 (Public Law 93-449, October 18, 1974)

Emergency Purchases by GNMA
     Provided emergency authority for the Government 
National Mortgage Association to purchase certain residential 
mortgages in a new Section 313 of the National Housing Act. 
(Authority for these purchases was terminated by the Housing 
and Urban-Rural Recovery of Act 1983, P.L. 98-181, November 30, 
1983).
     Provided that whenever the President found that 
inflationary conditions and related governmental actions were 
having a severely disproportionate effect on the housing 
industry and the orderly achievement of the national housing 
goals was threatened, he must direct GNMA to make commitments 
to purchase and to purchase and sell mortgages in accordance 
with the provisions of the section.
     Limited the total amount of purchases and 
commitments to not more than $7.75 billion outstanding at any 
one time.
     Provided that, upon such finding by the President, 
GNMA was to make commitments to purchase and purchase (and also 
service and sell) mortgages (1) which covered one- to four-
family residences and which were insured or guaranteed under 
the National Housing Act or by VA or by qualified private 
insurers, or where the mortgages were not insured but their 
outstanding principal balances did not exceed 80 percent of the 
property securing the mortgages, and (2) which covered more 
than four-family residences (including cooperatives and 
condominiums and the individual units therein) and which were 
insured under the National Housing Act or by VA.
     Provided that the mortgage could be purchased only 
if, among other things: (1) the principal amount of the 
mortgage did not exceed $42,000 per family residence or 
dwelling unit ($55,000 in the case of operations in Alaska, 
Hawaii, and Guam); and (2) it involved an interest rate or 
yield not in excess of that prescribed by the Secretary, but in 
no event more than a rate equal to the average yield on all 
marketable bonds of the United States maturing not more than 
six but less than 12 years from the date of commitment plus \1/
2\ of one percent adjusted upward to the nearest 1/8 of one 
percent, and taking into account the need to assure that the 
funds were available in all States pursuant to any maximum 
mortgage interest rate permitted under the laws or 
constitutions of the various States.
     Provided that discount and other charges collected 
in connection with mortgage transactions under the section and 
recognized by GNMA were not to be considered in determining 
where the interest rate on the mortgage exceeded any State 
usury ceiling.
     Authorized GNMA to obtain funds for these 
purchases by issuing its obligations to the Treasury.
     Authorized GNMA to guarantee securities based on 
pools or trusts of the mortgages it purchased under the new 
section, such as provided in Section 306(g) of the National 
Housing Act with respect to Federally insured or guaranteed 
mortgages, and to act as issuer of such guaranteed securities. 
(This authority was thus applied to eligible conventional 
mortgages, as well as insured mortgages.)
     Authorized HUD to make a ``portion'' of the 
mortgage purchase authority available to mortgages covering 
housing constructed more than 12 months prior to enactment of 
Section 313 in areas where it determined that there was a 
serious shortage of mortgage credit to purchase such housing.
  Other Amendments
     Authorized FHA to insure Title I of the National 
Housing Act loans financing the restoration or rehabilitation 
of certain historic structures, not exceeding $15,000 per 
family dwelling unit and with a maturity of not more than 15 
years.
     Authorized FHA to insure a first lien given to 
secure a loan made to finance the purchase of stock or 
membership in a nonprofit cooperative housing corporation, the 
permanent occupancy of the dwelling units of which was 
restricted to members of the corporation. Provided that the 
loan would have to meet appropriate requirements of the regular 
FHA Section 203 mortgage insurance program.
     Increased the limit on the amount of a home 
mortgage that could be accepted by a Federal Home Loan Bank as 
collateral security for an advance from $40,000 to $55,000; the 
$55,000 limitation could be increased by up to 50 percent with 
respect to dwellings in Alaska, Guam, and Hawaii.
     Authorized Federal Reserve Banks to make advances 
to member banks on time notes secured by mortgage loans 
covering one- to four-family residences. Required the advances 
to bear interest at a rate equal to the lowest discount then in 
effect at the Federal Reserve Bank.

   Solar Energy Research, Development, and Demonstration Act of 1974

                 (Public Law 93-473, October 26, 1974)

     Established the Solar Energy Coordination and 
Management Project composed of six members, including an 
Assistant Secretary of Housing and Urban Development, to have 
overall responsibility for the management and coordination with 
respect to a national solar energy research, development, and 
demonstration program.
     Specified that the Department of Housing and Urban 
Development had the responsibility for fostering the 
utilization of solar energy for the heating and cooling of 
buildings pursuant to the Solar Heating and Cooling 
Demonstration Act of 1974 (P.L. 93-409, September 3, 1974).

               Presidential Speech on Mortgage Purchases

       (Compilation of Presidential Documents, November 14, 1974)

     Announced in a speech to the National Association 
of Realtors' Convention that effective that day, up to 10 
percent of the $3 billion in commitments under the Home 
Purchase Assistance Act could be used for mortgages on existing 
homes.
     Urged that Congress include under the Act 
multifamily projects and individual condominium units and enact 
the Financial Institutions Act.

          National Mass Transportation Assistance Act of 1974

                 (Public Law 93-503, November 26, 1974)

     Directed the Secretary of Transportation to 
cooperate with the States in the development of long range 
plans which were formulated with due consideration to their 
probable effect on the future development of urban areas of 
more than 50,000 population.
     Provided that no project in an urban area was to 
be approved after July 1, 1976, unless the Secretary found that 
it was based on a continuing comprehensive transportation 
planning process.
     Authorized grants to be used for the payment of 
operating expenses and the acquisition, construction and 
improvement of facilities and equipment.

             Real Estate Settlement Procedures Act of 1974

                 (Public Law 93-533, December 22, 1974)

     Provided that HUD, in consultation with the 
Veterans Administration, the Federal Deposit Insurance 
Corporation and the Federal Home Loan Bank Board, should 
develop a standard form for the statement of settlement costs 
which would be used as the standard real estate settlement form 
in all transactions which involved Federally-related mortgage 
loans.
     Required the form to itemize all charges imposed 
upon the borrower and imposed upon the seller in connection 
with the settlement, and also to indicate whether any title 
insurance premium included in the charges covers or insures the 
lender's interest in the property, the borrower's interest, or 
both.
     Directed HUD to prepare and distribute booklets to 
help home buyers better to understand the nature and costs of 
real estate settlement services. Required advance disclosure by 
lenders of settlement costs at the time of the loan commitment, 
but in no case later than 12 days prior to settlement.
     Imposed limitations on requirements of advance 
deposits in escrow accounts for tax, insurance, and other 
payments.
     Directed HUD to report to Congress not more than 
five years from the effective date of the Act additional 
legislation considered needed in connection with real estate 
settlements. Directed HUD to establish on a demonstration basis 
a model system or systems for the recordation of land title 
information with a view to the possible development of a 
national uniform system of land parcel recordation.

                     Emergency Housing Act of 1975

                    (Public Law 94-50, July 2, 1975)

Emergency Homeowners' Relief Act
     Established a system for providing assistance to 
homeowners facing foreclosure of mortgages on their principal 
residence, whose delinquency resulted from adverse economic 
conditions, and who have a reasonable prospect of resuming 
payments. Provided relief in one of two ways: (1) through 
insured loans from private financial institutions or, (2) 
through payments from HUD to the mortgagee for debt service on 
the mortgage, for up to $250 per month, for up to two years. 
HUD was to determine the terms of repayment, but interest could 
not be charged at a rate higher than the FHA rate for single-
family mortgages. The start of repayment could be deferred for 
up to a year after the final monthly loan or HUD payment, or 
for a longer period if HUD determined this would further the 
purposes of the Act. Security could be required, including a 
lien on the property. Federal supervisory agencies should, for 
a year, take action to waive limitations on financial 
institutions with respect to mortgage delinquencies to 
encourage forbearance.
     Authorized insurance of a financial institution 
for up to 40 percent of the total amount of emergency loans 
made in the above program, but payment of up to 90 percent of 
the loss on any individual loan. An insurance premium of up to 
\1/2\ of 1 percent of outstanding loans per year could be 
charged. Authorized insurance of up to $1.5 billion in loans 
and credit advances at any one time. Authorized the Federal 
Deposit Insurance Corporation to borrow from the Treasury to 
make advances to any insured bank, to facilitate the bank's 
participation in the program.
     Authorized HUD to make payments directly to the 
mortgagee on behalf of the homeowner, if the mortgagee could 
not or chose not to participate in this program.
     Required HUD to report to Congress every 60 days 
on the status of delinquencies and foreclosures, the prospects 
for forbearance, actions taken under this Act, and other 
relevant information.
     Authorization for providing assistance to 
additional mortgagors was to expire on June 30, 1976.
Amendments to the Emergency Home Purchase Act of 1974
     Liberalized FNMA's assistance to residential 
construction by: (1) adding ``or other economic conditions'' to 
other conditions under which the President could direct GNMA to 
purchase and sell mortgages; (2) permitting FNMA to purchase 
conventional mortgages on multifamily properties and on 
individual condominium units with private mortgage insurance or 
with a mortgage no greater than 80 percent of value. The 
mortgage could not be used to convert a rental to condominium 
status. Authorized an additional $10 billion for the program.
     Limited interest on mortgages which could be 
purchased by GNMA under this Act to the cost of funds plus 
administrative costs, but not more than the lesser of 7 \1/2\ 
percent or the rate on FHA-insured single-family mortgages.
     Provided that State or local usury laws or laws 
prohibiting coverage of insurance required by GNMA not apply to 
these mortgages.
     Required GNMA-insured securities based on pools of 
mortgages purchased under this Act to bear interest at the rate 
of the underlying mortgages minus an allowance for expenses, as 
approved by GNMA.

Emergency Repair and Rehabilitation Authority
     Extended the authority of HUD to make expenditures 
for corrections for structural defects in one- and two-family 
homes insured under Section 235 of the National Housing Act, 
established in the Housing and Urban Development Act of 1970, 
to three- and four-family homes.

                 Amendments to the National Housing Act

                 (Public Law 94-173, December 23, 1975)

     Increased the maximum insured loan amounts for 
mobile homes, and raised the percentage by which mortgage 
limits in multifamily projects could be increased for high-cost 
areas to 75 percent.
     Removed the limit on proportion of units which 
could be occupied by single, non- elderly persons in low- and 
moderate-income multifamily projects assisted by mortgage 
interest subsidies under Sections 221 and 236 of the National 
Housing Act.

                  Home Mortgage Disclosure Act of 1975

           (Title III, Public Law 94-200, December 31, 1975)

     Required a depository institution which makes 
Federally-related mortgage loans to make publicly available at 
its home office, and at least one branch office in each 
standard metropolitan statistical area in which it has an 
office, information on the number and total dollar amounts of 
mortgage loans originated or purchased by the institution 
during each fiscal year.
     Required that above information be itemized by 
census tract or ZIP code, by properties located within or 
outside of metropolitan areas, by FHA-, FmHA-, or VA- insured 
or guaranteed, and by owner-occupancy, with home-improvement 
loans reported separately.
     Provided that the Federal Reserve Board should be 
the regulatory agency, but enforcement should be in the 
jurisdiction of the regulatory agency for each type of 
depository institution. Amendments to the Real Estate 
Settlement Procedures Act of 1974 (Public Law 94-205, January 
2, 1976)
     Made technical modifications in description of 
transactions covered by the Act, and clarified when forms 
providing information had to be provided to the borrower.
     Repealed the requirement that the previous selling 
price of existing homes be provided purchasers.
     Added to permissible fees those paid in connection 
with cooperative brokerage arrangements, and permitted HUD to 
add other permissible payments by regulation, after 
consultation with other concerned officials and agencies.
     Limited the amount of funds the lender could 
require the borrower to pay into an escrow account to the 
annual amount of taxes, insurance premiums, and other charges, 
plus one-sixth of the amount estimated for the following year; 
and the monthly amount to one-twelfth of that total amount.

                   Housing Authorization Act of 1976

                  (Public Law 94-375, August 3, 1976)

Assisted Housing
     Authorized additional funding for various housing 
assistance programs and for operating assistance to public 
housing for FYs 1975, 1976, the transition quarter and 1977, 
but added the requirement that authority to enter into 
contracts after July 1, 1975 was effective only to the extent 
approved in appropriation acts.
     Authorized payments for debt service for vacant 
units in newly constructed or substantially rehabilitated 
structures subsidized under Section 8, if mortgage was not FHA-
insured or project income did not cover costs.
     Permitted public housing agencies to rent up to 10 
percent of their units to non- elderly, non-handicapped and 
non-displaced single persons, but with priority given to 
elderly, handicapped, or displaced singles.
     Provided that, effective October 1, 1976, the 
value of housing assistance provided in public housing, Section 
8, Section 235 or 236, the rent supplement program, or Farmers 
Home programs could not be considered income or a resource for 
determining eligibility or benefits under the Supplemental 
Security Income program.
     Extended the Section 235 homeownership assistance 
program to September 30, 1977 with a number of amendments: 
Increased the maximum mortgage amount for which assistance 
could be provided to an owner of a cooperative or condominium 
unit to $25,000 ($29,000 in high cost areas) or $29,000 
($33,000) for families of five or more persons; and amended 
Section 221(d)(2) of the National Housing Act to provide the 
same limits for eligibility for mortgage insurance under that 
section. Increased income eligibility for receiving assistance 
to 95 percent of area median income, adjusted for family size. 
Extended the assistance provided to home purchasers under this 
section to a purchaser of a mobile home consisting of two or 
more modules and the lot on which it was placed; permitted 
mobile homes to comprise up to 20 percent of units approved for 
assistance after January 1, 1976.

Amendments to FHA Insurance Programs
     Added hospitals to the types of structures for 
whose improvement HUD could insure supplemental loans under 
Section 241 of the National Housing Act.
     Added special provisions to the coinsurance 
program for defaults on mortgages where the mortgagee was a 
public housing agency or insured depository institution and the 
mortgage was on a multifamily property; authorized HUD to make 
loans from the applicable insurance fund to public housing 
agencies holding defaulted loans which were insured under this 
subsection; in connection with a coinsurance contract, 
authorized HUD to insure mortgages made by a public housing 
agency with Section 236 assistance and mortgages made by a 
public housing agency that had not been approved for insurance 
prior to the start of construction.
     Increased the mortgage limits in the multifamily 
insurance programs, and decreased the permissible increase of 
these limits in high-cost areas to 50 percent.
     Extended the authorization of HUD to correct or 
make payments to owners to correct structural or other defects 
in properties insured under certain programs, to cover the same 
types of properties with mortgages insured up to the enactment 
of this Act. Required HUD to study and report on methods to 
protect all homebuyers of existing homes against hidden 
defects, including, but not limited to, the need and 
feasibility of a national inspection program and ways of 
providing information on the condition of homes and potential 
repairs to purchasers of homes with insured mortgages.

Amendments to Other Programs
     Amended the definition of elderly and handicapped 
families to include two or more such persons living together, 
one or more elderly or handicapped persons living with another 
person essential to their care, or the surviving spouse of such 
a person living with him/her at the time of his/her death.
     Amended the basis for determining the interest 
rate on loans for development of housing for elderly and 
handicapped housing under Section 202 to the average interest 
rate on all interest-bearing obligations forming a part of the 
public debt at the end of the fiscal year preceding the date of 
the loan.
     Extended the Emergency Homeowners Relief Act 
(P.L.94-50) to October 1, 1977, and increased the value of 
mortgages which GNMA was authorized to buy under this program 
to those taken on homes whose sales price did not exceed 
$48,000 ($52,000 in high-cost areas) per unit, except it might 
not exceed $65,000 in Alaska, Hawaii,and Guam.
     Directed HUD to undertake studies and 
demonstrations in at least three standard metropolitan areas of 
the need for and cost effectiveness of providing counseling to 
owners and purchasers of single-family houses with 
nonsubsidized, insured mortgages. An interim report was to be 
made within a year.

             Supplemental Housing Authorization Act of 1977

                   (Public Law 95-24, April 30, 1977)

Supplemental Authorizations and Extensions of HUD Programs
     Increased the maximum contract period for Section 
8 new construction and substantial rehabilitation to 30 years 
from 20 years, for non-FHA insured loans and co-insured loans 
made under Section 244 of the National Housing Act. The term of 
non-insured loans made by State housing finance agencies was 
kept at a maximum of 40 years.
National Neighborhood Policy Act
     Declared that city neighborhoods are a national 
resource in need of conservation and rehabilitation, that 
public policy should explicitly promote efforts for these 
purposes, and that a comprehensive review of existing laws, 
policies, and programs was needed to assess their impact on 
neighborhoods and recommend modifications where necessary.
     Established a National Commission on 
Neighborhoods, with 20 members: two Senators, two 
Representatives, and 16 to be appointed by the President 
representing a cross section of racial, ethnic, and 
geographical groups. The Commission was to make a comprehensive 
study of the factors contributing to neighborhood decline, 
including governmental and private legal, financial, and social 
actions, and recommend governmental actions at all levels 
necessary to facilitate neighborhood preservation and 
revitalization. A report was to be made within a year. The 
Commission was to cease existence 30 days after the report was 
submitted.

             Housing and Community Development Act of 1977

                 (Public Law 95-128, October 12, 1977)

Community Development Programs
  Community Development Block Grants (CDBG)
     Added to objectives of the CDBG program the 
alleviation of physical and economic distress through 
stimulating private investment and community revitalization in 
areas with population loss or stagnating or declining tax base.
     Added a requirement that, in carrying out the 
strategy for community development and meeting housing needs, 
primary attention be given to activities benefiting low- and 
moderate-income persons and neighborhoods, aiding in prevention 
or elimination of slums or blight, or meeting other 
particularly urgent development needs.
     Added a number of clarifying amendments to 
definitions of places and criteria for CDBG grants.
     Amended CDBG application procedures to strengthen 
consideration of housing needs of low- and moderate-income 
families and community participation in developing the 
application.
     Required HUD to permit grant recipients to receive 
their total funding in one payment, to use to establish a 
revolving loan fund to finance rehabilitation activities 
approved as part of the community development program.
     Authorized grants to neighborhood-based nonprofit 
organizations, local development corporations, or minority 
enterprise small business investment entities, to carry out 
community development objectives.
     Added rehabilitation of property owned by the 
local government to the purposes for which HUD could guarantee 
obligations issued by that government.
     Revised the formulas and requirements for 
allocation of CDBG funds among eligible recipients.
     Authorized reservation of 3 percent (instead of 2 
percent) of appropriations for a special Secretary's 
discretionary fund, extended the period for such set-aside to 
cover appropriations through FY 1980, and added Indian tribes 
to those eligible to receive assistance from the discretionary 
fund.
     Directed HUD to conduct a study on the 
developmental needs of small cities, including in its report 
alternative formulae for distribution of CDBG discretionary 
funds among these cities. The report was to be issued within a 
year.
  Urban Development Action Grants (UDAG)
     Established the UDAG program, which authorized 
grants by HUD to severely distressed cities and urban counties 
to alleviate physical and economic deterioration by stimulating 
economic activity. Jurisdictions would have to have 
demonstrated they have provided housing for persons with low 
and moderate incomes, have met equal opportunity requirements 
in housing and employment for such persons and for minorities, 
and met minimum standards for distress developed by HUD.
     Required applicants to submit a program and 
strategy with components similar to those required for 
Community Development Block Grants.
     Required HUD to establish criteria for selecting 
grant recipients, with the primary criterion the comparative 
degree of distress as measured by differences in growth lag, 
poverty, and age of housing; other criteria include such items 
as the recipient's performance in housing and community 
development programs, impact of the proposed activity on 
problems of low- and moderate-income persons and minorities and 
on neighborhood residents, the leverage potential, and others 
enumerated or to be established by HUD.

Housing Assistance Programs
     Permitted public housing agencies to manage units 
assisted by Section 8, under contract with the owner.
     Prohibited approval of Section 8 rental assistance 
in high-rise projects for families with children, unless there 
was no practical alternative.
Federal Housing Administration Mortgage Insurance and Related Programs
     Increased the maximum mortgage amounts which could 
be insured under Sections 203, 220, 221, 222, and 235; also 
increased insurable amounts and terms of loans for home repair 
and mobile homes under Section 2(b). Prohibited insurance of 
mortgages under Section 235 on more than 40 percent of units in 
a subdivision, except for rehabilitated units or a unit or 
subdivision in an established urban area pursuant to a 
community-sponsored overall redevelopment plan.
     Decreased down-payment requirements in purchasing 
homes with mortgages insured under Sections 203, 220(d)(3)(in 
urban renewal areas), 222 (veterans), and 234 (condominiums), 
to 95 percent of value over $25,000.
     Authorized Section 203 insurance of mortgages in 
communities suffering temporary adverse economic conditions 
because of outstanding claims to land ownership by an American 
Indian tribe, and in which 50 or more individuals were joined 
as defendants prior to December 31, 1976 in litigation 
involving such claims. Such mortgages were to be insured 
regardless of statutory underwriting conditions, if the failure 
to meet usual requirements resulted from such claims; the 
insurance was to be an obligation of the Special Risk Insurance 
Fund.
     The experimental program for insurance of 
mortgages with varying rates of amortization established in the 
Housing and Community Act of 1974 (P.L.93-383) was made 
permanent and designated Graduated Payment Mortgages. Placed 
limits with respect to appraised value on permissible increases 
in outstanding value of the mortgage. Provisions, including 
interest on interest, were exempted from any conflicting State 
requirement.

Lending Powers of Federal Savings and Loan Associations; Secondary 
        Market Authorities
     Liberalized lending powers of Federal savings and 
loan associations by raising the proportion of assets which 
could be invested in construction loans to 5 percent; raising 
the ceiling on single-family home mortgages in which 
associations could invest without asset limitation to $60,000; 
raising the ceiling on home improvement loans to $15,000; 
repealing the percentage of assets limitation for multifamily 
housing mortgages.
     In connection with the authority given by the 
Emergency Home Purchase Assistance Act of 1974 (P.L. 93-449) to 
the Government National Mortgage Association (GNMA) to purchase 
mortgages when necessary to stabilize the housing industry, 
authorized HUD to require that such purchases promote 
homeownership opportunities for moderate-income families and 
that part of the purchased mortgages finance rehabilitation of 
dwelling units in older or declining neighborhoods.
     Raised the ceiling on the dollar amount of a 
conventional mortgage eligible for purchase by the Federal 
National Mortgage Association (FNMA) and the Federal Home Loan 
Mortgage Corporation (FHLMC) for properties located in Alaska, 
Hawaii, and Guam to 25 percent above that applicable elsewhere.
Rural Housing Programs
     Authorized the Farmers Home Administration (FmHA) 
to pay for correcting defects or purchasing the property, if 
the owner requested, for a newly constructed dwelling bought 
with FmHA assistance that was found to have defects. 
Expenditures were to come from the Rural Housing Insurance 
Fund.
     Added laborers on farms in Puerto Rico and the 
Virgin Islands to those defined as ``domestic farm labor'' for 
purposes of obtaining farm labor housing loans and grants.
     Changed ``elderly person'' to ``elderly or 
handicapped persons or families'' in defining those eligible 
for assistance under the various programs administered by FmHA. 
``Families'' were defined as two- or more-person households 
whose head or spouse of head was 62 years of age or 
handicapped, two or more elderly or handicapped persons living 
together, one or more elderly or handicapped persons living 
with another person essential to their care, or the surviving 
member of a family living with a deceased elderly or 
handicapped person at the time of his/her death.
     Added congregate housing for the elderly and 
handicapped to housing which could be assisted by the FmHA 
rental program.
     Required that at least 60 percent of Section 502 
(homeownership) and Section 515 (rental) loans benefit low-
income persons.
     Changed FmHA's authority to provide assistance to 
low-income families in FmHA- financed rental projects to a 
requirement, by changing ``may'' to ``shall'' in the relevant 
section of the law.

National Urban Policy
     Changed the thrust of the Urban Growth and New 
Community Development Act of 1970 (Title VII of P.L. 91-609) by 
changing its title to National Urban Policy and New Community 
Development Act of 1970, substituting ``urban policy'' or 
``development and redevelopment'' for ``growth'' in the 
statements of findings and policy, and inserting ``energy and'' 
before references to ``natural resources.''

Flood and Riot Insurance
     Increased the limits of coverage under the flood 
insurance program.
     Made more specific the circumstances under which 
HUD could purchase properties damaged by floods.
     Authorized loans at a 2 percent interest rate 
under certain circumstances to owners of insured flood-damaged 
single-family homes in a floodway to elevate the structure. 
Authorized administrative appeals by homeowners or a community 
from designation as a flood hazard area.

Community Reinvestment Act of 1977
     Stated a finding that banks and savings and loan 
associations were required to meet the credit as well as 
deposit needs of the communities in which they were chartered 
to do business, including an affirmative obligation to help 
meet the credit needs of local communities. Required Federal 
financial supervisory agencies to assess the institution's 
record in meeting such needs, including those of low- and 
moderate- income neighborhoods, when considering an application 
for a deposit facility. ``An application for a deposit 
facility'' included an application for a charter, deposit 
insurance, establishing a branch, relocation of an office, 
merger, or acquisition of shares in a regulated financial 
institution requiring the approval of the regulatory agency. 
Required each appropriate Federal financial agency to describe 
its activities in carrying out this requirement in its annual 
report.

Miscellaneous
     Established a Special Assistant for Indian and 
Alaska Native Programs in HUD, to coordinate all activities 
relating to Indian and Alaska Native housing and community 
development. Required HUD to report annually on such 
activities, on the cost of prospective activities, and on the 
relevant housing conditions. Exempted from requirements of the 
National Mobile Home Construction and Safety Standards Act of 
1974 (Title VI, P.L. 93-383) manufactured housing designed to 
be placed on a site-built permanent foundation and manufactured 
to the standards of a nationally recognized or equivalent 
building code.
     Required HUD, beginning in calendar year 1979, to 
issue annually prototype construction costs for each market 
area for one- to four-family dwelling units of various types 
and sizes.

          Housing and Community Development Amendments of 1978

                 (Public Law 95-557, October 31, 1978)

Community and Neighborhood Development and Conservation
     Revised the Section 312 rehabilitation program to 
give priority to loan applications from low- and moderate-
income persons, defined as those with incomes not exceeding 95 
percent of area median, who own the property and will live in 
it after rehabilitation. Added a requirement that a multifamily 
property granted a loan must be located in a low- or moderate-
income neighborhood or have a majority of tenants of low or 
moderate income. For persons with incomes over 80 percent of 
area median, authorized HUD to charge interest on the loan of 
between 3 percent and the average yield on comparable United 
States securities. Increased the permissible loan for a 
commercial property to $100,000. Required that a report on the 
types of families and neighborhoods assisted and an evaluation 
of progress toward program goals be included in the annual 
report required of the CBDG program.
     Authorized FHA to insure loans for rehabilitation 
of one- to four-family structures, using the General Insurance 
Fund, subject to terms of Section 203 of the National Housing 
Act.
     Amended the CDBG program to strengthen references 
to rehabilitation of housing as an acceptable activity; 
clarified that an application for a grant could not be 
disapproved because of greater or lesser emphasis on any one of 
the three primary purposes of eliminating or preventing slums 
or blight, providing improved public facilities, or improving 
housing conditions of low- and moderate-income persons.

Housing Assistance Programs
     Established a program of further assistance (now 
known as the ``Flexible Subsidy'' program) for financially-
troubled rental projects assisted by Sections 221(d)(3) or 
Section 236 mortgage-interest reduction programs or Rent 
Supplement payments. The purposes were both to protect the 
insurance fund against claims because of foreclosures and to 
preserve the low- and moderate-income housing stock, and 
assistance was to be given only if it would restore the 
financial soundness of the project, maintain its low-rental 
character, and was determined to be the least costly way of 
maintaining that character. Funding was to come from the fund 
established from rent payments over the basic rents in the 
Section 236 program, plus any additional appropriations.
     Provided that tenants in assisted projects have 
notice of and opportunity to comment on proposed actions by the 
owner which required HUD approval, that owners not interfere 
with tenants' requests for rent subsidies or efforts to 
organize tenant councils, and that leases provide protections 
against eviction without good cause.
     Established requirements in management and 
disposition of HUD-owned multifamily projects, financed with a 
HUD-insured mortgage and assisted under Section 236, the 
Section 221(d)(3) below-market rate interest program, or with 
rent supplements; such disposition was to further the goal of 
making the units available to low- and moderate-income 
families. Required HUD to try to assure the maximum opportunity 
for any displaced tenants to return to the project or receive 
other housing assistance.
     Set aside $50 million from funds appropriated for 
Section 202 housing for the elderly and handicapped to develop 
rental housing specifically for the handicapped, with a variety 
of housing options and provision of services to encourage 
optimal independent living.
     Amended low-income housing programs to permit 
rental of 15 percent, instead of 10 percent, of units to non-
elderly single persons.
     Amended the Section 8 rental assistance program by 
specifying permissible levels of rehabilitation less than those 
of the substantial rehabilitation program; adding a moderate 
rehabilitation program for units which could be upgraded to a 
decent, safe, and sanitary condition with a lesser amount of 
rehabilitation; and permitting use of Section 8 assistance for 
the rental payment for the property on which an owner- occupied 
mobile home was placed. (Repealed, except for single-oom 
occupancy units for the homeless, by the National Affordable 
Housing Act, P.L. 101-625, November 28, 1990.)
     Adopted the Public Housing Security Demonstration 
Act of 1978, which required HUD to conduct a demonstration 
program to develop and evaluate methods of mitigating the level 
of crime in public housing projects. Required HUD, in selecting 
projects to participate in the demonstration, to consider 
proposals to coordinate public housing management actions with 
community-wide anticrime measures funded under programs of the 
Law Enforcement Assistance Administration and other relevant 
agencies. Authorized use of public housing development funds 
for this demonstration program.

Other Program Amendments
     Designated mortgages eligible for insurance on 
multifamily rental projects as those on buildings containing 
five (as opposed to eight) or more family units.
     Authorized HUD to take necessary steps to protect 
the Federal financial interest in multifamily housing or 
medical facilities projects in event of foreclosure on 
uninsured loans senior to FHA-insured loans.
     Made daycare facilities for otherwise independent 
elderly and others eligible for mortgage insurance under the 
program for nursing homes and intermediate care facilities.
     Made individual condominium units eligible for 
FHA-insured mortgages where they were located in existing 12-
unit or larger buildings even though the buildings were not 
covered by FHA project mortgages; allowed no-downpayment loans 
to veterans purchasing condominiums.
     Increased size of insurable loans to homeowners 
for the purpose of allowing purchase of leased land under the 
owned home to $30,000 in the case of Hawaii.
     Increased dollar limits on home mortgages eligible 
for purchase by GNMA under its special assistance program, for 
properties located in new communities, urban renewal areas, 
Hawaii, Alaska, or Guam; raised per-unit dollar limits for 
mortgages on multiunit projects located in high-cost areas; 
authorized an increase of $500 million in purchase authority 
under the special assistance functions of GNMA.
     Increased ceiling amounts and terms to maturity 
for insured improvement loans for multifamily housing units.
     Opened FHLMC to purchase mortgages from any 
lenders approved by HUD and not only those who were members of 
the Federal Home Loan Bank System, most notably adding mortgage 
bankers, for whom the Corporation was previously closed; 
specified that the Corporation could set reasonable standards, 
establish requirements and impose differential fees for 
different classes of lenders acting as sellers/servicers.
     Authorized HUD to accept a mortgage or to insure a 
mortgage on favorable terms when selling multifamily housing 
projects from default inventory for use as non- profit consumer 
cooperatives.
     Prohibited HUD from denying insurance on homes 
solely because of a junior lien held by a State or local unit 
of government on the same property under terms approved by HUD.
     Raised per-unit mortgage ceilings for apartment 
projects to be insured under Sections 221(d)(3) and 221(d)(4) 
of the National Housing Act.
     Authorized and set terms for insured refinancing 
of existing debt for existing hospitals.

Research
     Authorized HUD to conduct demonstrations of the 
feasibility of expanding homeownership in urban areas, with 
emphasis on conversion of multifamily properties to condominium 
or cooperative ownership.
     Required HUD to study the feasibility of 
underground construction of residential units, including 
necessary changes in housing codes and financing. Required a 
report within a year.

Sale of Surplus Federal Land
     Further amended provisions relating to the sale of 
Federal surplus land for housing, under Section 414 of the 
Housing and Urban Development Act of 1969 as amended (P.L. 91-
152), to add the provision that such housing should be assisted 
under a Federal housing assistance program or a State or local 
program with the same purposes. Also amended some operational 
details.

Legislative Review
     Required HUD to submit semi-annually to the 
Committee on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Banking, Finance and Urban Affairs of the 
House of Representatives a list of all rules and regulations 
under review by HUD. Established a procedure for Committee 
review of a proposed rule or regulation, whether on the 
submitted list or not, prior to its publication for comment, 
and for delay in its becoming effective after final publication 
to provide an opportunity for Congressional rejection. 
Procedures for review and delay could be waived by agreement of 
the Chairmen and Ranking Minority Members of both Committees.

Congregate Housing Services Act of 1978
     Established a program supporting congregate 
services for elderly and handicapped persons who faced 
premature institutionalization, to assist them in continuing to 
live independently. Authorized HUD to make three-to-five year 
grants to applicant public housing agencies and nonprofit 
agencies sponsoring projects financed under Section 202 of the 
Housing Act of 1959, for provision of services, which had to 
include full meal service and could include other housekeeping 
aid, personal assistance, and other services to permit 
independent living. Grants could be renewed.
     Established application, evaluation and report 
procedures and programmatic requirements to be followed by HUD 
and the grant applicants and grantees, including a requirement 
that HUD report by March 15, 1984 on the desirability of making 
the program permanent.
     Authorized appropriations for FYs 1979 through 
1982, beginning with $20 million the first year and increasing 
by $5 million each year, to $40 million in FY 1982.

Rural Housing
     Amended requirements for research programs to 
emphasize housing needs of elderly, handicapped, migrant and 
seasonal farmworkers, and Indians. Directed FmHA to study the 
housing available to migrant and settled farmworkers and 
recommend legislative and administrative actions to improve the 
availability and condition of such housing. A report was to be 
made within a year.
     Established a program of additional assistance for 
low-income home purchasers who could afford a home at the 1 
percent rate and who lived in places for which rental 
assistance programs were unsuitable, which paid the difference 
between debt service, taxes, insurance, utilities, and 
maintenance costs and 25 percent of the applicant's income. 
Required FmHA to provide for the recapture of assistance upon 
the borrower's sale of or leaving the home.
     Made minor amendments to the rental housing 
assistance program.
     Required the Secretary of Agriculture to study the 
need for, and cost of, supplying rural housing units with 
potable water and sanitary toilet facilities.
     Required the Secretary of Agriculture to study in 
detail problems of obtaining title insurance on real property 
in rural areas encumbered by remote claims.

Neighborhood Reinvestment Corporation
     Established the Corporation as a tax-exempt, non-
governmental agency to institutionalize and expand the work of 
the Urban Reinvestment Task Force in revitalizing housing in 
older urban neighborhoods. Its board of directors was to 
consist of the Chairman of the Federal Home Loan Bank Board, 
the Secretary of HUD, a member of the Board of Governors of the 
Federal Reserve System, Chairman of the Federal Deposit 
Insurance Corporation, the Comptroller of the Currency, and the 
Administrator of the National Credit Union Administration. 
Directed the Corporation to establish neighborhood housing 
services and provide grants and technical assistance for 
preservation and developmental programs in cooperation with 
local neighborhood residents, local governments, and financial 
institutions. Required annual reports to the President and 
Congress. Authorized appropriations of $12.5 million for FY 
1979 to carry on this work, and required an annual budget be 
submitted to the Office of Management and Budget, to be 
included in the annual Federal budget, but non-Governmental 
funds received by the Corporation were not to be considered 
Federal funds.

Neighborhood Self-Help Development Act of 1978
     Found that urban neighborhoods were a national 
resource the conservation and revitalization of which should be 
objects of public policy, and that efforts toward these ends 
could be most effective if neighborhood support was gained 
through neighborhood organizations.
     Defined ``neighborhood organization'' as a 
voluntary, non-profit organization representative of the 
neighborhood and accountable to neighborhood residents, 
carrying on activities directed to conservation and 
revitalization of housing and businesses in the neighborhood.
     Authorized HUD to provide grants and other 
assistance to neighborhood organizations to prepare and 
implement specific housing and development projects within the 
neighborhood and with the active involvement of residents of 
the neighborhood, which include, to the extent feasible, a 
self-help component, leveraging of resources, and coordination 
with resources available from other governmental sources.
     Authorized appropriations of $15 million each for 
FYs 1979 and 1980. (Title VII was repealed by the Housing and 
Community Development Amendments of 1981, Title III, P.L. 97-
35, August 13, 1981)
Livable Cities Act of 1978
     Found that encouragement of the development or 
preservation of artistic, cultural, and historic resources is 
an appropriate function of the Federal Government, particularly 
in connection with assisted housing and community development 
activities.
     Stated the primary purpose of this title to be 
giving assistance to governmental, neighborhood and other 
organizations in providing a more suitable living environment 
through expansion of cultural opportunities, particularly for 
low- and moderate-income residents of deteriorated 
neighborhoods.
     Authorized HUD, in consultation with the National 
Endowment for the Arts (NEA), to make grants to non-profit 
organizations to assist them with projects carrying out the 
purposes of this title. HUD and the NEA were to establish 
criteria for grants and procedures for evaluation and selection 
of applications, including a requirement for matching funds. 
Required approval of the unit of local government in which the 
project was to be located.
     Authorized appropriations of $5 million for FY 
1979 and $10 million for FY 1980.

Miscellaneous
     Required HUD to conduct a study of the extent of 
housing displacement resulting from housing and community 
development programs and to report by January 31, 1979, on ways 
to minimize such involuntary displacement and to alleviate 
problems caused by both publicly and privately financed 
residential and commercial development and rehabilitation.
     Required HUD, in consultation with the National 
Institute of Building Sciences and other appropriate public and 
private agencies, to develop model housing rehabilitation 
guidelines to be voluntarily adopted by States and local 
communities. Required HUD to publish such guidelines within a 
year, for comment, to promulgate them within 18 months, to 
assist States and localities to facilitate implementation, and 
to report to Congress on actions taken within three years.
     Amended the Interstate Land Sales Full Disclosure 
Act (Title XIV of P.L. 90-448) to exempt from its requirements 
the sale or lease of a lot located within a municipality or 
county in which the local government has specified minimum 
subdivision standards which the subdivision meets, the lot is 
zoned or designated for single- family homes, and is on 
developed land with access to utilities, and various 
requirements relating to the transaction are met.
     Forbade HUD from reorganizing any field office 
until expiration of 90 days after publication in the Federal 
Register of a cost-benefit analysis of the effect of such a 
move, including the impact on the local economy as well as 
costs and savings for HUD.

          Housing and Community Development Amendments of 1979

                 (Public Law 96-153, December 21, 1979)

Community and Neighborhood Development and Conservation
  Urban Development Action Grants (UDAG)
     Made eligible for UDAG grants (with a 20 percent 
match) cities or urban counties which did not meet the minimum 
standards established by HUD for eligibility, but which 
contained pockets of poverty with sizeable populations, in 
which at least 70 percent of the area's residents had incomes 
below 80 percent of the city or county median income or 30 
percent with incomes below the national poverty level. Required 
HUD to use 20 percent of funds appropriated for UDAG for grants 
to cities or counties made eligible by this amendment.
     Required HUD to develop special selection criteria 
for these areas, including the criteria for other UDAG grants 
but also requirements that the proposed project be located 
within the poverty pocket or directly adjacent and contribute 
to the development of that area, that it directly benefit the 
area's low- and moderate-income households, and that the city 
or county has demonstrated that it has spent as much per capita 
in providing services to that area as to other higher-income 
areas within its jurisdiction similar in population size and 
physical characteristics.
     Added the requirement that a UDAG grant could be 
made only if HUD determined there was a strong probability that 
the non-Federal investment would not be made if there were no 
grant and that the grant would not substitute for otherwise 
available non-Federal funds.
  Urban Homesteading Amendment
     Authorized HUD to pay the Veterans Administration 
and the Secretary of Agriculture for any property conveyed by 
them to a local government, State, or approved agency in 
connection with the urban homesteading program.
  Conversion of Rental Units to Condominium Status
     Required an estimate of the impact of condominium 
conversion on housing needs in the housing assistance plans 
developed under the Community Development Block Grant program.
     Required HUD to produce within six months a report 
on the number and geographic extent of conversions and a 
projection of future developments, factors influencing their 
increase, and their impact on availability of housing for 
lower-income persons; permitted, but did not require, HUD to 
include recommendations on alternative means to minimize 
adverse impacts of such conversions.

Housing Assistance Programs
     Required preference for families occupying 
substandard housing or involuntarily displaced in selecting 
tenants for public housing or assistance under Section 8.
     Required that public housing agencies receiving 
operating subsidies agree not to dispose of the project without 
HUD's consent for ten years after receipt of such funds, but 
also permitted HUD to continue paying such an operating subsidy 
after expiration of the initial annual contributions contract 
so long as the low-income nature of the project was maintained.
     Increased permissible rent payments in public 
housing for other than very low- income families to 30 percent 
of adjusted income; kept the maximum for very low- income 
families at 25 percent of adjusted income.
     Increased permissible rent payments of certain 
types of families who first occupied units assisted under 
Section 8 (of the United States Housing Act of 1937 as amended) 
after December 31, 1979, to between 20 to 30 percent of 
adjusted income.
     Amended the rent supplement program (Section 101, 
Urban Development Act of 1965, P.L. 89-117) to permit units 
assisted under this program to be transferred to Section 8 
assistance; changed the eligibility for new tenants to receive 
assistance and the definition of income to be the same as under 
Section 8, kept the maximum required rent payment at 25 percent 
except that tenants occupying units transferred to Section 8 
assistance would pay the rent as determined under Section 8. 
Similarly, changed the definition of ``income'' under the 
Section 236 mortgage-payment assistance program to that of 
Section 8, but provided that the rent payment of tenants 
occupying units assisted by Section 101 or Section 236 prior to 
adoption of these amendments could not increase above the 
maximum permissible prior to their adoption. Permitted HUD to 
amend existing Section 101 contracts to make them conform to 
these new requirements.
     Required preference under Section 235 for families 
otherwise likely to be displaced, including displacement of 
tenants through condominium or cooperative conversion. 
Permitted Section 235 assistance to be used for acquisition of 
a condominium or cooperative membership.
     Changed to an absolute requirement, from HUD's 
trying to ``assure the maximum opportunity,'' the right of 
return or further assistance for tenants displaced from HUD- 
owned buildings because of disposition or other management 
actions.
     Added to the criteria for choosing among 
applications for Section 202 loans for housing for the elderly 
and handicapped consideration of stabilizing effects on 
neighborhoods, rehabilitation of significant structures, and 
assisting families facing relocation because of public or 
private investment in the neighborhood.
     Required HUD to make a number of studies, 
including the desirability of requiring minimum rent payments 
from tenants in assisted housing, rents paid by tenants in 
assisted housing and the private stock, and the adequacy of 
programs for the elderly and handicapped in rural areas.

Other Program Amendments and Extensions
     Extended Section 312 rehabilitation, Section 701 
comprehensive planning, and the Community Development Block 
Grant programs, with some minor amendments.
     Extended and raised the maximum mortgage amounts 
in various FHA insurance programs, and raised the possible 
increase in mortgage amounts in high-cost areas to 75 percent; 
extended the Emergency Home Purchase Assistance Act of 1974 
(P.L. 93-449) to September 30, 1980; and increased funding for 
losses in the General Insurance Fund by $93 million.
     Exempted loans insured under Titles I or II of the 
National Housing Act from any existing State usury ceilings; 
provided for subsequent State override of exemption should 
States choose.
     Mandated studies of actuarial soundness of current 
and alternative insurance premium amounts and structure; and 
alternatives for determining mortgage ceilings to allow for 
regional price variation and year-to-year flexibility.
     Allowed housing units not approved for FHA 
insurance prior to construction, to be insured under FHA at the 
same mortgage ceilings as those that were approved prior to 
construction so long as covered by an acceptable consumer 
warranty satisfying all requirements that would have applied 
for pre-construction approval.
     Raised the ceiling mortgage amount for FHA-insured 
home mortgages to $67,500 for a one-family residence (including 
condominiums), $76,000 for a two-family residence, $92,000 for 
a three-family residence, and $107,000 for a four-family 
residence. Increased mortgage ceilings on properties located in 
urban renewal areas, and increased the add-on for larger than 
four-family properties to $8,250 per unit.
     Increased mobile home and lot mortgage amounts 
eligible for FHA insurance: for mobile home alone to $18,000 
($27,000 for homes of two or more modules); for mobile homes 
with undeveloped lot to $24,000 ($33,000 for two or more 
modules) and term of loan to 20 years and 32 days (25 years and 
32 days); for mobile homes on developed lots to $27,500 
($36,500) and term to 20 years and 32 days (25 years and 32 
days); for lots alone to $6,250 if undeveloped, or $9,375 if 
developed and term to 15 years and 32 days.
     Allowed HUD to increase maximum mortgage amounts 
on rental properties located in high-cost areas to as much as 
75 percent above the national ceiling or, if necessary and on a 
project by project basis, to as much as 90 percent above the 
national ceiling.
     Disallowed insurance for (or modification of 
existing) mortgages financing hospitals where the insurance or 
modification is in conjunction with tax-exempt financing; 
exemptions allowed for hospitals for which such applications 
were already made to the Department of Health, Education, and 
Welfare or for nonprofit hospitals which had undertaken certain 
steps toward refinancing and which received medicare and 
medicaid payments 125 percent above the national average as a 
percentage of total revenue.
     Strengthened operations of the Federal Home Loan 
Mortgage Corporation by granting obligations issued by them the 
same standing as government securities and eligibility to 
collateralize public deposits; and by making liens on 
cooperative shares eligible for purchase by the corporation.
     Exempted certain FHA-insured multifamily mortgages 
from per-unit mortgage amount ceilings for purposes of the 
special assistance functions of the Government National 
Mortgage Association, if they covered projects in which at 
least 20 percent of units were assisted through Section 8 
contracts. (The requirement for Section 8 assistance was 
repealed by the Housing and Community Development Act of 1980, 
P.L. 96-399, October 8, 1980.)
     Mandated a report on recommendations for programs 
and policies to encourage individual ownership of mobile home 
lots through condominium, cooperative, or subdivision 
developments.
     Increased single-family home loan limits for 
federally chartered savings and loan associations to $75,000.
     Mandated uniform documents be used by relevant 
Federal agencies for mortgage application, commitment, property 
appraisal, settlement and other forms.
  The Homeownership Opportunity Act of 1979
     Expanded the FHA-insured graduated payment 
mortgage program to allow a higher degree of negative 
amortization (and lower initial monthly payment) than 
previously if the mortgagor could not otherwise afford to 
purchase a house.
     Provided that the principal could not exceed 97 
percent of property value, but property value could be 
increased as much as 2.5 percent per year to maintain that 
ratio so long as the outstanding loan principal never exceeded 
113 percent of initial appraised value.
     Restricted the program to the greater of 10 
percent of the dollar amount of graduated mortgages insured the 
previous year or 50,000 mortgages.

Interstate Land Sales
     Amended the types of sales of real estate or real 
estate-related financial instruments which were exempt from the 
provisions of the Act to clarify or tighten the terms of 
exemption.
     Expanded the conditions under which, and length of 
time during which, a purchaser could revoke a contract of sale 
or lease.
     Made explicit the conditions under which HUD could 
certify a State's laws or regulations as substantially 
equivalent to Federal requirements in the information required 
to be given to a prospective purchaser of property covered by 
this Act.
     Required HUD to submit an annual report on the 
impact of the Act.

Rural Housing
     Reauthorized various rural housing programs, and 
added a definition of ``low income'' to mean 80 percent of the 
median income for the area, as determined by the Secretary of 
Agriculture, adjusted for family size, and construction costs 
or unusually high- or low- family incomes.
     Prevented prepayment of a loan made for farm labor 
housing under Section 514 or for low-income, elderly, and 
handicapped rental housing under Section 515 unless the 
Secretary of Agriculture obligated the borrower to utilize the 
assisted housing for its designated purposes for 15 years from 
the date of the loan, if it has not received rent payment 
assistance under Section 521 or Section 8, or for 20 years for 
other loans, or unless he determined there is no longer a need 
for such housing.
     Despite the above requirement, permitted 
prepayment of loans made prior to the date of enactment of this 
Act unless the Secretary of Agriculture determined that such 
prepayment was likely to result in displacement of low- and 
moderate-income and elderly tenants (unless they were provided 
affordable, decent alternative housing) or, if the housing 
contained more than 10 units, that changes resulting from such 
prepayment would have a substantial adverse effect on the 
supply of affordable, decent housing in the area.
     Required that at least 30 percent of loans made in 
any area of any State in any year benefit persons with incomes 
below 50 percent of median for the area.

Crime, Riot, and Flood Insurance
     Extended the authorization for crime insurance, 
riot reinsurance, and flood insurance to September 30, 1981.
     Transferred control of the insurance programs from 
HUD to the Federal Emergency Management Agency (FEMA).
                  VII. THE 1980s--SHIFTING PRIORITIES

            Solar Energy and Energy Conservation Act of 1980

    (Title V, Energy Security Act, Public Law 96-294, June 30, 1980)

Solar Energy and Energy Conservation Bank
     Encouraged energy conservation and the use of 
renewable energy, especially solar energy, in residential, 
commercial, and agricultural buildings, through grants to 
reduce loan amounts, interest payments, or to provide other 
financial assistance to owners or tenants who install energy 
conservation or solar energy systems in structures they 
construct, own, or occupy.
     Established the Solar Energy and Energy 
Conservation Bank in HUD, whose Board of Directors were the 
Secretaries of HUD, Energy, Treasury, Agriculture, and Commerce 
and whose President was to be appointed by the President with 
the advice and consent of the Senate.
     Provided that the Board establish levels of 
financial assistance, subject to maximum amounts set forth in 
the Act for various types of buildings and assistance, and to 
various limitations and procedures established in the Act.
     Provided that the Bank cease to exist after 
September 30, 1987. (Except for clean-up type operations, the 
Bank discontinued activities after that date, and no longer 
exists.)

             Housing and Community Development Act of 1980

                  (Public Law 96-399, October 8, 1980)

Community and Neighborhood Development and Conservation
  Community Development Block Grant Program
     Amended criteria and data sources for defining 
metropolitan areas and urban counties and distributing funds 
among them.
     Included promotion of energy efficiency in the 
statement of purposes, the application requirements, and 
eligible activities.
     Limited the guarantees of loans taken by States or 
local governments for CDBG purposes to appropriated amounts, 
and authorized HUD to make commitments to guarantee no more 
than $300 million during FY 1981.
  Urban Development Action Grants
     Added to information to be submitted by applicants 
for grants the identification of properties which would be 
affected by the proposed action which are included on the 
National Register of Historic Places or which, in the judgment 
of the applicant, might meet the criteria for inclusion on that 
Register; required a description of effect.
     Required the Secretary of the Interior and the 
Advisory Council on Historic Preservation to make necessary 
regulations to assure comments, and required them and the 
appropriate State historic preservation officer to comment on 
the proposed actions. Prohibited HUD from approving a grant 
unless the applicant certified that these agencies had been 
provided opportunity to take authorized action.

Housing Assistance Programs
  Public Housing
     Added a new Section 14 to the United States 
Housing Act of 1937 to provide a Comprehensive Improvement 
Assistance Program (CIAP) for public housing, under which 
grants were provided on a competitive basis to public housing 
agencies to improve the physical condition of projects and to 
upgrade their management. Required agencies wishing to receive 
such grants to file applications containing detailed 
descriptions of the current conditions and proposed 
improvements, with a schedule of actions over no more than a 
five-year period and an estimate of the costs of the 
improvements and amounts for up to 30 years of necessary annual 
contributions. Established preference in giving grants to 
agencies requesting assistance for conditions threatening the 
health and safety of residents or with a significant number of 
vacant, substandard units. Established limitations on the 
annual amount of grants to any one public housing agency. 
Permitted HUD to make grants to meet emergency needs without 
regard to the conditions established for a CIAP grant.
     Adopted the Public Housing Anti-Crime Amendments 
of 1980, amending the Public Housing Security Demonstration Act 
of 1978 to make it conform with the current organization of 
Federal agencies, to authorize use of the Annual Housing Survey 
to collect data on crime and vandalism, and to use information 
derived from activities authorized under this program to 
establish guidelines for public housing agencies to use in 
determining strategies for meeting security needs in the 
projects.
     Required installation of passive or active solar 
energy systems in newly developed or substantially 
rehabilitated public housing projects if HUD determined such 
installation would be cost effective.
  Section 8
     Amended the Section 8 program by limiting the 
amount of contract authority which could be used to fund 
payments between 10 percent and 20 percent higher than the Fair 
Market Rent for new construction or substantial rehabilitation 
to not more than 20 percent of an area's allocation. Permitted 
HUD to establish a Fair Market Rent for moderately 
rehabilitated units in high cost areas of up to 120 percent of 
that for existing units, or up to 130 percent where special 
circumstances warranted.
  Rent Supplements
     Amended the Section 101 Rent Supplement Program to 
require that amendments in this program made by the Housing and 
Community Amendments of 1979 (P.L. 96- 153) be incorporated in 
existing contracts within four years of adoption of this 1980 
Act; the 1979 Act had authorized but not required HUD to do so. 
Also required that in making the changes, HUD should provide 
that the low- and moderate-income nature of the housing should 
continue for the term of the original contract.
  Section 235 Homeowner Assistance
     Raised the maximum mortgage limits and permitted 
insurance of an amount 10 percent above the designated maximum 
if the home was to be occupied by a handicapped person. 
Required recapture of the lesser of the subsidy amount received 
or at least 50 percent of the net appreciation gained, upon 
sale of the property, default of at least three months on the 
mortgage payment, or its rental for more than a year.
     Authorized HUD, upon its determination that there 
was substantial need for emergency stimulation of the housing 
market, to use up to 75 percent of funds authorized for use 
under Section 235 to provide such assistance to mortgagors with 
incomes up to 130 percent of area median, with adjustments for 
family size, for mortgages on a principal residence whose sales 
price did not exceed 82 percent of the applicable maximum 
principal obligation of a mortgage insured under Section 
203(b)(2). The interest rate on the mortgage could not exceed 
the rate on such a 203(b) mortgage, and the subsidy payment was 
limited to the lesser of the difference between the payment to 
cover debt service at that rate and 20 to 25 percent of the 
mortgagor's income or the difference between such payment and 
required payment on a mortgage with an interest rate of at 
least 9 \1/2\ percent. Up to 20 percent of the units receiving 
assistance could be manufactured homes, but with higher 
interest rates.
  Other Amendments to Assistance Programs
     Authorized provision of Section 8 assistance to 
residents in Section 236 projects; limited the amount of such 
assistance which could be used for elderly or handicapped 
residents who pay more than 50 percent of their income for 
rent.
     Strengthened protection of low- and moderate-
income tenants in disposition of HUD- owned projects by 
requiring that when disposing of such projects HUD should 
assure the affordability to such families of the units they 
were currently occupying and of all vacant units; adding to the 
goals a requirement to maintain the project as rental or 
cooperative housing as long as feasible; and adding to projects 
subject to these requirements all acquired projects that had 
mortgages insured under the National Housing Act, had Section 
202 (elderly or handicapped) or Section 312 (rehabilitation) 
loans, or acquired ``pursuant to any other provision of law.''
     Prohibited HUD from making any assistance 
available to any nonimmigrant student alien.

Other Program Amendments
     Changed all references in housing laws to ``mobile 
homes'' to ``manufactured homes,'' slightly changed the 
definition as set forth in Section 603(6) of the Housing and 
Community Development Act of 1974, and increased the loan 
amounts which could be insured under Section 2(b) of the 
National Housing Act.
     Adopted an additional section authorizing FHA home 
insurance under Section 203(b) in a community in which title to 
land was in dispute because of Indian claims, under somewhat 
different terms from those established in the Housing and 
Community Development Act of 1977 (P.L. 95-128).
     Eliminated the requirement that 20 percent of 
units be assisted through Section 8 contracts, in exempting 
multifamily mortgages purchased under GNMA special assistance 
function from per-unit mortgage amount ceilings (included in 
the Housing and Community Development Amendments of 1979, P.L. 
96-153, December 21, 1979.)
     Increased maximum mortgage limits insurable under 
Sections 207, 213, 221(d)(3) or (d)(4), 231, 232, 234, and 242, 
to cover costs of installation of a solar energy system or 
other residential energy measures.
     Added to the places in which mortgages could be 
insured under Section 220 neighborhoods with a strategy for 
improvement, conservation, or preservation, and permitted 
inclusion in the property of nondwelling facilities if 
consistent with a neighborhood strategy.
     Adopted formula for adjusting the ``conforming 
loan limit,'' which is the maximum principal amount allowed on 
conventional mortgages eligible for purchase by FNMA and FHLMC; 
for 1980 the amount was set at $93,750 for a single-family 
residence, $120,000 for a two-family residence, $145,000 for a 
three-family residence, and $180,000 for a four-family 
residence; upward adjustments were effective January 1 of each 
year beginning 1981 to equal the 12-month percentage increase 
to the most recent October in the national average one-family 
house price as reported by the Federal Home Loan Bank Board's 
survey of major lenders; buildings with five or more units were 
limited to 125 percent of the FHA (Section 207) insurance 
ceiling; all limits could be increased by 50 percent for 
Alaska, Guam, and Hawaii.
     Limited use of FHA insurance for loans to install 
individual utility meters in multifamily projects to cases 
where accompanied by other energy conserving improvements or 
where minimum standards of energy conservation were met.
     Required prompt pass through of mortgage insurance 
premiums paid by mortgagors from lenders to FHA; allowed up to 
two-year delay in pass though if interest were paid at an FHA-
specified rate. Authorized use of loan foreclosure procedures 
and insurance payments as for properties in the Mutual Mortgage 
Insurance Fund for FHA-insured rehabilitation loans where such 
loans are secured by first mortgages.
     Set aside $30 million of special assistance 
purchase authority under GNMA to assist in refinancing FHA-
insured mortgages on low- and moderate-income rental projects 
having 100 or fewer units and located in older declining urban 
areas, where refinancing and moderate rehabilitation would 
otherwise cause excessive rent burdens on tenants.
     Conditioned all approvals to prepay or refinance 
FHA-insured mortgages for low- and moderate-income rental 
projects upon agreement to maintain the rental property for at 
least five years (20 years if under GNMA special assistance) 
unless conversion to cooperative or condominium status is 
sponsored by a majority of households in the project, or 
maintenance of rental housing is either unnecessary to 
providing adequate rentals in the community or has a 
deleterious effect on the neighborhood.
     Mandated report by August 1, 1981 on the increased 
construction and operating costs of buildings due to increased 
HUD thermal requirements, and the competitive impact of 
applying or permitting exemptions from the standards; continued 
local standards for masonry construction until report was made; 
allowed local standards exemption for specific construction 
types in specific locations if economically justified.
     Authorized lenders and borrowers to contract for 
negotiated interest rates rather than the FHA-administered 
rates, limited to the greater of 10 percent or 50,000 of FHA- 
insured 203(b) mortgages a year; required a report by March 1, 
1982 on points and yields under the negotiated rates compared 
to conventional mortgages and administered-rate FHA-insured 
mortgages.
     Set maximum mortgage term for FHA-insured home 
mortgages at a standard 35 years by removing consideration of 
remaining economic life of property.
     Delayed implementation of any final HUD rule or 
regulation until after a 30-day period (previously 20-day) 
following final publication.
     Altered ceiling mortgage amounts for FHA-insured 
mortgages in high-cost areas on an area-by-area basis; 
permitted the ceiling amount to be raised by up to one third 
above the national FHA limit of $67,500 but, for one-family 
homes, not to exceed 95 percent of the median one-family house 
price in the area as determined by HUD, for two-family 
residences 107 percent, for three-family residences 130 
percent, and for four-family residences 150 percent of the 
median price; made similar changes for home mortgages on 
properties in urban renewal areas (Section 220(d)(3)) and 
raised the per-unit allowance for units in excess of four to 
$9,165 for such areas; allowed ceilings up to 111 percent of 
the national ($67,500) ceiling for condominiums.
     Mandated a study to be transmitted to Congress by 
March 1, 1981, on the role of FHA in assisting homeownership, 
new construction, capital flows into mortgage markets, 
moderating housing costs and continuing desirability of area-
by-area mortgage ceilings. Extended GNMA authority to purchase 
mortgages under the Emergency Home Purchase Assistance program 
to October 1, 1981; added a required finding that purchases 
would not worsen inflationary conditions.
     Made mortgage securities eligible for purchase 
where the mortgages were secured by manufactured housing.
     Set a minimum interest rate relative to market 
rates and a maximum house price relative to market prices for 
housing insured under FHA 203(b) for mortgages eligible for 
purchase; made cooperative and condominium mortgages in rental 
conversion projects ineligible.
     Increased GNMA mortgage purchase authority under 
special assistance functions by $900 million.
     Amended FNMA's authority to deal in home 
improvement loans, including those related to energy 
conservation, to clarify that HUD has approval authority; HUD 
must approve any proposal or transmit to Congress an 
explanation for withholding approval within 75 days of the 
proposal submission.
     Granted FNMA authority to deal in loans secured by 
manufactured housing with approval of HUD; HUD must grant 
approval of any proposal within 75 days or explain to Congress 
why a proposal was not approved.
     Amended the Home Mortgage Disclosure Act of 1975 
(P.L.94-200, Title III) to provide that data be reported by 
calendar year by all lenders, by census tract within 
metropolitan counties with 30,000 or more population, otherwise 
by county; required the Federal Financial Institutions 
Examination Council (FFIEC) to implement a system for making 
all reports in a metropolitan area available at a central 
depository in the area, aggregating data by census tract and 
producing tables showing aggregate lending patterns for 
categories of census tracts grouped by age of housing, income, 
and racial characteristics in the tracts; required HUD to 
provide data for nondepository lenders not otherwise subject to 
HMDA, in connection with mortgages insured under Titles I and 
II of the National Housing Act; required FFIEC to study and 
report on usefulness of requiring reports on small business 
loans, and on feasibility of establishing a unified system for 
enforcing fair lending implementing the Community Reinvestment 
Act and satisfying purposes of public disclosure under HMDA.
     Established the Temporary Mortgage Assistance 
Payments program for the purpose of avoiding foreclosures on 
FHA-insured mortgages in default where such default was due to 
circumstances beyond mortgagor's control and there was a 
reasonable prospect that mortgagor could resume full mortgage 
payments within three years, begin repayment of temporary 
assistance, and repay the mortgage in full by its maturity date 
or extended date if approved by HUD; allowed temporary payments 
up to full amount of monthly payment for the period of default 
plus 18 months, extendable for a second 18 months; required 
that assistance constitute a second lien; required HUD to 
acquire the mortgage where assistance payments were deemed 
inappropriate and authorized forbearance up to 36 months from 
acquisition if the same conditions as for assisted payments 
were met; authorized counseling for homeowners assisted under 
this program.
     Required reports on a number of subjects, 
including mutual housing, feasibility of collecting regional 
data on home mortgage delinquencies, and feasibility of using 
factory-built housing for Indian and Native Alaskan housing 
programs.

Planning Assistance
     Reformulated and amended Section 701 of the 
Housing Act of 1954 (P.L. 83-560, August 2, 1954) by requiring 
that grant funds be used to encourage coordination of Federal 
policies to achieve National Policy Objectives. (Section 701 
was repealed by the Housing and Community Development 
Amendments of 1981, Title III of the Omnibus Budget 
Reconciliation Act of 1981, P.L. 97-35, August 13, 1981.)
     Defined National Policy Objectives to include 
plans and strategies that promote community conservation 
activities, particularly in areas experiencing fiscal, 
economic, or social distress; increase housing and employment 
choices for low- income and minority families, women, elderly 
and the handicapped; and encourage energy conservation and 
orderly growth and development.
     Provided that grants be awarded annually to 
develop strategies and action programs consistent with the 
National Policy Objectives to implement comprehensive plans or 
related plans, develop evaluation studies related to such 
plans, and to carry out A-95 clearinghouse review process.
     Required recipients of grant assistance to develop 
strategies and action programs to implement comprehensive plans 
that were consistent with National Policy Objectives. Required 
that such action programs include the following elements: (1) 
identification of the action needed to implement strategy 
statement, (2) identification of the governmental entity 
responsible for each element of action program, (3) a timetable 
for implementing elements of the action program, and (4) a 
pledge that governmental agencies will undertake actions 
outlined in the action program.
     Provided that communities with populations below 
50,000 could use Section 701 assistance to prepare applications 
for other Federal financial assistance, with communities with 
populations below 25,000 receiving preference.
     Required that, in awarding grants, preference be 
given to areawide planning organizations that provide voting 
rights in proportion to the population of areas represented by 
members of the organization.
     Required HUD to perform annual audits and reviews, 
and recipients of grant assistance to submit annual performance 
reports to HUD. Required HUD to review comprehensive plans of 
States and local governments every three years.
     Required HUD to use comprehensive plans and 
strategies approved under Section 701 to guide funding and 
policy decisions of other HUD programs. Directed HUD to 
encourage other Federal agencies and departments to use 
comprehensive plans and strategies to guide their policy and 
funding decisions. Required HUD to submit to Congress every 
three years, starting January 15, 1984, a report concerning 
progress made in encouraging other Federal agencies to use 
approved plans and strategies.
     Encouraged all Federal agencies to adopt 
comprehensive plans as part of their planning process.

Rural Housing
     Amended Sec. 414 of the Housing and Urban 
Development Act of 1949 (P.L. 91- 152) to authorize the 
transfer of surplus real property to the Secretary of 
Agriculture (in addition to the Secretary of HUD) for use in 
providing housing for low- and moderate-income families.
     Amended FmHA low- and moderate-income rental 
housing programs to require that the interest rate on loans be 
written down to not less than 1 percent, by changing ``may'' to 
``shall'' in the authorization. (Restored ``shall'' to ``may'' 
in the Housing and Community Development Amendments of 1981, 
Title III, P.L. 97-35, August 13, 1981.)
     Removed the restrictions on prepayment of Sections 
514 and 515 loans made prior to December 21, 1979, but required 
that tenants displaced as a result of consequent rent increases 
or changes in use of the property be given priority for 
relocation to alternative assisted housing.

Condominium and Cooperative Abuse Relief Act of 1980
     Adopted a sense of Congress that lending for 
conversion of rental housing to cooperative or condominium 
ownership should be discouraged if there would be an adverse 
impact on low- and moderate-income, elderly, or handicapped 
renters, and that tenants should receive adequate notice and 
the first right to purchase; however, actual legislation to 
this effect was left to the States and local governments.
     Adopted a number of consumer protection provisions 
relating to provisions in contracts between the developer and 
owners in conversions to a cooperative or condominium, 
particularly regarding operation of the property after 
conversion, long- term commercial leases, and compensation to 
the developer for legal costs in owners' actions against him.
     Provided that this title should not be construed 
to limit the right of a State or locality to control 
conversions, provided its action did not contravene the 
consumer protections established herein, except, that with 
certain exceptions, a provision of this title would not apply 
in a State or locality which took action to overturn it within 
three years of enactment of this title.

          Housing and Community Development Amendments of 1981

 (Title III, Omnibus Budget Reconciliation Act of 1981, Public Law 97-
                          35, August 13, 1981)

Subtitle A--Housing and Community Development
Part 1--Community and Economic Development
     Repealed provision for grants to States for 
planning assistance to small cities, authorized in Section 701, 
Housing Act of 1954 (P.L. 83-560, August 2, 1954) and for 
assistance for neighborhood development, authorized in the 
Neighborhood Self- Help Development Act of 1978, Title VII, 
Housing and Community Development Act of 1978 (P.L. 95-557, 
October 31, 1978).
     Amended and extended the Community Development 
Block Grants, Urban Development Action Grant, Urban 
Homesteading, and Rehabilitation Loan programs.
     Replaced the Community Development Block Grant 
(CDBG) program's detailed three-year community development 
application with a Statement of Community Development 
Objectives and Projected Use of Funds. Transferred to States 
the authority to distribute and administer CDBG nonentitlement 
funds.
     Required that only entitlement communities 
(communities receiving a direct allocation of CDBG funds) 
develop Housing Assistance Plans (HAP) as a condition for 
receiving CDBG funding.
     Required that communities use HAPs to survey and 
assess the condition of their housing stock and the housing 
needs of low-income persons, and to specify annual goals to 
meet the housing needs of low-income residents.
     Amended the citizen participation provisions 
governing the CDBG program by requiring that States and 
entitlement communities certify that they have provided 
information to the public concerning the amount of funds 
available and range of activities that may be undertaken, and 
that they have provided opportunity for public comment on the 
proposed use of funds, including holding at least one public 
hearing to obtain citizen input.
     Deleted the statutory requirement that CDBG 
recipients submit an annual report; instead directed HUD to 
establish a schedule for the submission of performance reports.
     Added assistance to for-profit entities engaged in 
economic development and comprehensive planning to the list of 
eligible CDBG activities. Deleted the requirement that public 
service activities must be part of a large neighborhood 
revitalization effort involving other CDBG eligible activities. 
Limited the amount of CDBG funds grantees could use for CDBG 
public service activities to 10 percent of their total annual 
allocation.
     Allowed States the option of directly 
administering the nonentitlement portion of the CDBG program. 
Allocated 30 percent of CDBG funds appropriated for 
distribution to States to distribute to small urban and rural 
communities that fail to qualify for direct funding. Allowed 
each State exercising the option of directly administering 
funds to determine the method of distribution to eligible 
communities. Allowed each State to use no more than 2 percent 
of its CDBG allocation for administrative expenses. This 2 
percent could not exceed 50 percent of the total administrative 
expenses.
     Required the Governor of each State administering 
CDBG funds to certify that the State: (1) engaged or will 
engage in community development planning; (2) provided or will 
provide technical assistance; (3) provided or will provide 
State funds equal to 10 percent of its CDBG allocation; (4) has 
consulted with local elected officials in nonentitlement 
communities on the use of funds and the method of distribution.
     Eliminated four categories of activities eligible 
for discretionary funding: areawide housing and community 
development programs, innovative CD projects, emergency 
community development assistance, and grants to correct formula 
inequities.
  Urban Development Action Grants
     Required Urban Development Action Grant (UDAG) 
applicants to describe proposed activities and include cost 
estimates and general location of a proposed project, identify 
financial resources involved in a project and projected 
economic benefit. Required applicants to certify that public 
hearings were held, particularly for low- income residents of 
affected areas, and that the impact on low-income residents of 
the affected area was considered.
     Eliminated the requirement that a community's UDAG 
application be coordinated with and consistent with a 
community's HAP.
     Deleted requirement that HUD confer with other 
Federal agencies before awarding UDAG funds for business loans 
or industrial development purposes. Deleted the requirement 
that UDAG funds be allocated in a reasonably balanced manner 
among neighborhood, commercial, and industrial projects.
     Required HUD to report to Congress no later than 
270 days after enactment of this Act on legislative or 
administrative steps that could be taken to: (1) require that 
all CDBG grantees target assistance to small distressed areas 
small enough so that visible progress could be made in a 
reasonable time; (2) reduce the broad list of eligible 
activities so that funds could be focused on activities that 
met a grantee's most urgent needs; (3) develop income 
eligibility requirements for CDBG-supported rehabilitation; and 
(4) limit rehabilitation work to that which is needed to make 
housing decent, safe, sanitary, and energy efficient.

Part 2--Housing Assistance Programs
     Reauthorized the ongoing assistance programs at a 
substantially reduced level from previous years, with a 
requirement that funds be distributed on a fair-share basis, 
but with the provision that no more than 45 percent of funds be 
used to assist existing units and no more than 55 percent for 
new construction and substantial rehabilitation.
     Limited Secretary's retention of discretionary 
funds to not more than 15 percent of the amounts appropriated 
beginning with FY 1982, to be used only for specified special 
purposes.
     Standardized the definition of income for 
determining eligibility and rent payments in all the assisted 
rental housing programs administered by HUD and instructed the 
Farmers Home Administration to report to Congress on how its 
programs could be targeted to the same income group.
     Limited occupancy of units in public housing or 
with Section 8 subsidy by families with incomes between 50 
percent and 80 percent of area median (lower- not very-low 
incomes) to not more than 5 percent of all units made available 
for rental after the Act, and to not more than 10 percent of 
units previously available but being rerented.
     Raised the rent payment of a family in public 
housing or assisted through the Section 8 program to the 
highest of 30 percent of adjusted income, 10 percent of gross, 
or the welfare payment designated for housing, with a five-year 
phase-in period for current tenants. Similarly, raised the 
minimum rent of residents in Section 236 projects to 30 percent 
of income. Limited increased rent resulting from this change 
for current tenants to 10 percent in any one year, with some 
exceptions.
     To reduce costs of newly constructed or 
substantially rehabilitated Section 8 projects, required modest 
design, and adopted a number of limitations on increasing rents 
during construction or after occupancy. Authorized HUD to 
provide Section 8 assistance to single-room occupancy units, 
without private kitchen or bathroom, if the unit of general 
local government and the local public housing agency approve.
     Authorized Section 8 assistance for payment of 
site-rent on which a resident-owned manufactured home was 
located, or for rent payment for both site and a rented 
manufactured home.
     Adopted a number of miscellaneous provisions 
protecting tenants, and guarding against fraud or otherwise 
protecting governmental interests.
     Terminated authority to enter into contracts for 
homeowner mortgage interest reduction payments under Section 
235 at the end of FY 1983. (This termination date was extended 
in subsequent legislation, with program modifications to be 
noted. It was finally terminated in the National Affordable 
Housing Act of 1990, P.L. 101-625, November 28, 1990.)
     Provided that no housing assistance could be 
provided to any alien not lawfully admitted for permanent 
residence in the United States.

Part 3--Amendments to Mortgage Insurance Programs
     Increased the Government National Mortgage 
Association's authority to commit to purchase mortgages under 
its special assistance functions by $1.1 billion; limited 
aggregate commitments for FY 1982 to $1.973 billion of which no 
more than $580 million could be for mortgages on projects 
without Section 8 rental assistance; limited commitments to 
guarantee securities backed by mortgages held under its 
management and liquidation functions to $69.542 billion for FY 
1982; limited commitments to purchase below-market mortgages 
under its ``tandem'' plan to mortgages secured by multifamily 
projects having firm commitments for mortgage insurance under 
Title II of the National Housing Act through October 1, 1982; 
required that new applications for multifamily mortgage 
insurance continue at least until January 1, 1982.
     Limited FHA commitments to insure mortgages in FY 
1982 to $41 billion.
     Increased the property improvement and 
manufactured home loan amounts eligible for Title I FHA 
insurance and changed the terms of the loans, distinguishing 
among types of properties.

Part 4--Amendments to Flood Insurance Program
     Extended authority for the flood insurance program 
and amended it to prohibit insurance for new construction or 
substantial improvement of structures located on an undeveloped 
coastal barrier, to be designated by the Secretary of the 
Interior after study of the definition and location of such 
areas. Permitted Federally-insured financial institutions to 
make loans secured by such structures.

Part 5--Rural Housing
     Restored the write-down of interest to 1 percent 
for loans for low- and moderate- income rental housing to be 
permissive rather than required, by changing ``shall'' to 
``may.''
     Required the Secretary of Agriculture to present a 
report by March 1, 1982 on alternatives to financing rural 
housing programs through the Federal Financing Bank; on making 
FmHA assisted housing programs consistent with those of HUD 
with respect to targeted income groups and required 
contributions from tenants; on minimizing subsidy levels; and 
on efforts to lower the cost of subsidized housing.
Part 6--Multifamily Mortgage Foreclosure Act of 1981
     Established a procedure for foreclosing on 
multifamily mortgages held by HUD pursuant to Title II of the 
National Housing Act or Section 312 of the Housing Act of 1964, 
in which a commissioner appointed by HUD conducted the 
foreclosure without regard to State laws and without any right 
of redemption for the mortgagor following the foreclosure sale.

              Housing and Urban-Rural Recovery Act of 1983

  (Titles I-V, Supplemental Appropriations Act for FY 1984, and Other 
            Purposes, Public Law 98-181, November 30, 1983)

Community and Neighborhood Development and Conservation
  Community Development Block Grant Program
     Made the primary CDBG objective that of benefiting 
low- and moderate-income persons by requiring that 51 percent 
of grant funds be used for activities of benefit to such 
persons, and amending reporting, evaluation, and other 
administrative requirements to conform to this emphasis.
     Amended eligibility requirements for receipt of 
grants to provide transition funding for cities and urban 
counties losing entitlement status as a result of the 1980 
census.
     Defined ``buildings for the general conduct of 
government,'' for which CDBG funds may not be used, to exclude 
neighborhood service centers or other special purpose buildings 
housing provision of services in low-and moderate-income 
neighborhoods.
     Required increased provision of relevant 
information to citizens to facilitate citizen participation in 
preparation of plans and monitoring activities under the plan.
     Amended provisions which specified the activities 
eligible for assistance from CDBG grants, to change some of the 
terms of assistance and to expand the types which are eligible.
  Urban Development Action Grants
     Increased the ability of small cities to compete 
for grants by expanding the number of distress factors, 
permitting consortia of cities and counties to apply for a 
grant, and setting aside funds for technical assistance grants.
     Prohibited HUD, in making grants, from 
discriminating among programs on the basis of the type of 
activity involved, whether neighborhood, commercial or 
industrial.
  Urban Homesteading
     Lengthened the required term of residence of a 
homesteader to five years, and the period for bringing the 
building into conformity with code standards to three years.
     Required that purchasers of a homestead property 
be first-time owners, with priority for applicants living in 
substandard housing, paying over 30 percent of income for 
housing, and with little chance of obtaining improved housing 
without homesteading.
     Permitted HUD, on a demonstration basis, to convey 
title to multifamily properties it owns to local governments 
for residential use, provided not less than 75 percent of the 
occupants after rehabilitation would be lower-income.
     Directed HUD to use not more than $1 million in 
each of FY 1984 and 1985 to assist State or local governments 
in purchasing one- to four-family homes for use in the 
homesteading program, with preference to proposals to acquire 
properties available in satisfaction of a public lien, such as 
a tax lien.
     Amended the Section 312 rehabilitation program to 
prohibit HUD from giving funding priority in the use of funds 
under any Federal assistance program other than homesteading.
  Neighborhood Development Demonstration
     Established a demonstration program of support to 
neighborhood development activities, through matching grants of 
not more than $50 thousand a year to an eligible neighborhood 
development organization.
     Defined eligible activities as job creation; 
establishing or expanding neighborhood businesses; development, 
rehabilitation, or management of housing; developing delivery 
mechanisms for essential services; or neighborhood improvement 
activities.
     Defined an eligible organization as a nonprofit 
corporation at least 51 percent of whose governing body were 
residents of the area served, operating in an area eligible to 
receive urban development action grants, in existence for at 
least three years, conducting at least one of the eligible 
activities for the primary benefit of low- and moderate-income 
persons.
     Provided that awards be granted competitively, 
based on the degree of economic distress in the neighborhood; 
extent of benefit to low- and moderate-income persons; extent 
of neighborhood participation; and extent of voluntary 
financial contributions. The appropriate ratio of matching 
funds was to be determined by HUD for each recipient 
organization.
     Required certification from the local government 
that the proposed activities were consistent with its housing 
and community development plans, before the grant was made 
available.

Housing Assistance Programs
  General Provisions
     Amended the requirement in the Housing and 
Community Development Act of 1974 (P.L. 93-383) that HUD should 
``take into consideration'' a number of factors in allocating 
housing assistance funds among applicant jurisdictions, to 
require that the funds be allocated by a formula based on the 
same factors.
     Permitted rental of up to 30 percent of assisted 
units to non-elderly single persons, with HUD approval and if 
necessary to rent unoccupied units.
     Raised the limit on the proportion of re-rented 
units which could be leased to families with incomes between 50 
percent and 80 percent of median from 10 to 25 percent.
     Added those paying more than 50 percent of income 
for rent to the types of families to receive preference in 
obtaining housing assistance.
     Specified the deductions to be made from gross 
income in deriving the adjusted income on which amounts of rent 
payments are based, in place of leaving their specification to 
HUD regulation.
     Removed the exceptions which had been permitted to 
the limitation to 10 percent in a year on rent increases 
resulting from the requirement that rents be 30 percent of 
adjusted income, and made the 30 percent payment applicable to 
all current rental housing assistance programs.
     Required that pet ownership be permitted in any 
assisted housing for the elderly, subject to reasonable 
regulation.
  Public Housing
     Authorized use of funds which had been 
appropriated for development of new public housing, for 
modernization activities in the CIAP program or for purchase 
and rehabilitation of properties for public housing, if the PHA 
certified such use would be more effective.
     Permitted new construction of public housing, 
after September 30, 1983, only if the PHA could demonstrate 
that its cost would be less than the cost of acquisition of 
housing, with or without rehabilitation.
     Required that priority in development be given to 
housing suitable for occupancy by large families.
     Established a Public Housing Child Care 
Demonstration Program, which required HUD to carry out a 
program to determine the feasibility of using public housing 
facilities to provide child care services to its tenants; HUD 
was to authorize the use of public housing facilities for this 
purpose in areas where such a program did not already exist, 
where the local government would make CDBG funds available for 
necessary renovations and to support services, and where the 
services would permit residents to obtain or train for 
employment. Required HUD to submit a report after two years 
with respect to making the program permanent. (Program was 
amended by the Housing and Community Development Act of 1987, 
P.L. 100-242, February 5, 1988.)
     Required HUD to require PHAs to establish 
grievance procedures giving tenants rights to notice of grounds 
for adverse actions and rights to a fair hearing.
     Required public housing leases to contain 
reasonable conditions, to obligate PHAs to maintain a project 
in proper condition, to give adequate notice of expiration, and 
to permit termination only for serious or repeated violations 
of its terms or other good cause.
     Demolition and Disposition of Public Housing. 
Restricted demolition or disposition of a public housing 
project or part of a project, by prohibiting HUD from approving 
such action, with or without its financial assistance, unless 
HUD found:
          a. In the case of a request for demolition, that the 
        project or part of project to be demolished was 
        physically or otherwise obsolete, or no reasonable 
        program of modification would restore it to useful 
        life, or, in the case of a request for demolishing part 
        of the project, that the partial demolition would help 
        assure the useful life of the rest of the project;
          b. In the case of a request for disposition, that 
        retention is not in the best interests of the tenants 
        because environmental changes adversely affect the 
        tenants or feasible operation of the project, or 
        because the disposition would permit acquisition, 
        development, or rehabilitation of other properties 
        which would be operated more effectively for low-income 
        use and the total stock of such housing would not be 
        diminished, or for other reasons consistent with the 
        best interests of tenants and the PHA;
          c. In the case of disposition of non-residential 
        property, it is not needed by the project for continued 
        operation; and
          d. If disposition is approved, net proceeds would be 
        used first for payment of development costs and 
        retirement of outstanding obligations for that cost, 
        and any remaining funds for provision of additional 
        housing assistance for low-income families.
     Provided that approval could not be given unless 
the PHA application was developed in consultation with the 
affected tenants and tenant councils, and the local government 
has certified that the activity would be consistent with the 
housing assistance plan.
     Required that approval could be given only if all 
dislocated tenants would be provided with relocation assistance 
by the PHA, and were relocated to other decent, safe, sanitary 
and affordable housing, preferably of their choice, possibly 
with Section 8 assistance.
     Authorized HUD to provide financial assistance for 
approved activities using appropriations for annual 
contributions contracts for assisted housing.
  Section 8 Rental Housing Assistance
     Repealed authority as of October 1, 1983, for 
approval of any additional contracts for Section 8 assistance 
for new construction or substantial rehabilitation, except for 
projects for the elderly and handicapped financed under Section 
202.
     Prohibited attachment of Section 8 existing-
housing certificates to a structure except when the owner 
agreed to rehabilitate it without financial assistance from 
housing- assistance funds.
     Permitted use of Section 8 certificates by elderly 
families to assist them in living in a shared dwelling unit, 
with special habitability standards to be issued for this 
purpose.
     Vouchers. Established an experimental program 
under Section 8, providing rental assistance in the form of a 
voucher, in which HUD paid a landlord the difference between a 
``rent standard`` and 30 percent of the tenant's adjusted 
income, and the tenant paid the difference between HUD's 
payment and the actual rent which had been negotiated by the 
tenant and landlord in the private market; the tenant's payment 
could be more or less than 30 percent of income, depending on 
whether the negotiated rent was greater or lower than the rent 
standard. Required the unit to meet quality standards.
     Provided that the program in each locality be 
administered like the Section 8 certificate program, by a 
Public Housing Agency under a five-year contract with HUD.
     Provided that HUD determine the rent standard 
based on the Section 8 Fair Market Rent for the unit size in 
the area, with the PHA permitted, but not required, to grant 
two rent increases to a landlord in the five-year period.
     Limited voucher recipients to families with 
incomes below 50 percent of area median, with the same 
preferences as in other housing assistance programs.
     Provided that vouchers be used almost entirely for 
assistance for families residing in units rehabilitated under a 
newly created Rental Rehabilitation and Development Program 
(see below) or families displaced by development assisted by 
that program.

Other Housing Programs
  Section 202
     Established the maximum interest rate for loans 
made during FY 1983 at 9.25 percent.
     Provided that a loan could not be prepaid or 
transferred unless there was assurance that the project would 
continue to provide rental units for elderly and handicapped on 
equally advantageous terms for the original term of the loan.
     Required HUD, in selecting projects for loans, to 
assure design features necessary to meet the special needs of 
elderly and handicapped, and to encourage small and scattered 
site group homes for the nonelderly handicapped.
  Housing for Recipients of Public Assistance
     Established a demonstration program to provide 
grants on a competitive basis to at least 20 local governments 
to improve the housing of lower-income families, especially 
recipients of assistance from the Aid to Families with 
Dependent Children (AFDC) program.
     Provided that applicants for grants develop a plan 
for governmental activities to encourage owners to bring 
housing occupied by lower-income families into compliance with 
the local housing code; to provide technical or financial 
assistance to such owners in these activities; to work with the 
State in establishing AFDC shelter allowances to support such 
quality housing; and to coordinate housing inspections, 
rehabilitation efforts, rental assistance, and social service 
programs to improve such housing.
     Required that grant funds be used for the purposes 
developed in the plan: to provide technical and financial 
assistance for upgrading the indicated properties; to assist 
non-AFDC families not receiving Section 8 assistance with 
temporary rental assistance; and to provide housing referrals 
and other housing-related services.
     Required grant recipients to provide 15 percent 
matching funds.
     Authorized appropriations of $10 million for FY 
1984 and $15 million for FY 1985.
  Section 235 Homeownership Assistance
     Provided that mortgages on three-family dwellings 
be eligible for Section 235 insurance, and that HUD not deny 
such insurance because the mortgage financed a two- or three-
family dwelling or was used for rehabilitation rather than new 
construction.
     Reduced the contractual interest-reduction period 
to 10 years, subject to renewal for another 10-year period, 
subject to eligibility of the homeowner and availability of 
funds, for contracts utilizing funds appropriated for any 
fiscal year beginning with FY 1984.
     Established a fund for use for the above purpose 
to contain moneys recaptured after sale of an assisted 
dwelling, or because an assisted mortgage was refinanced or 
terminated.

Rental Housing Rehabilitation and Development Program
     Adopted programs to make grants to use for 
moderate rehabilitation of privately owned rental properties 
and for new development or substantial rehabilitation of such 
properties, in Section 17 of the United States Housing Act of 
1937, as amended. (Authorization repealed by the National 
Affordable Housing Act, P.L. 101-625, November 28, 1990, 
effective at end of FY 1991.)
     Authorized use of housing vouchers under Section 
8(o) to support the program or provide assistance to those 
displaced by it.
     Authorized use of up to $615 million of housing 
assistance funds authorized for FYs 1984 and 1985, of which up 
to $150 million was for use each year in the rental 
rehabilitation program, and up to $200 million in FY 1984 and 
$115 million in FY 1985, for development grants.
  Rental Rehabilitation
     Provided that grants for moderate rehabilitation 
be distributed among cities with populations of 50,000 or more, 
urban counties, and States (for use in smaller cities) on the 
basis of a formula, taking into account such factors as low-
income rental population, overcrowding, and the physical 
condition of the stock, subject to various adjustments. 
(Repealed by the National Affordable Housing Act, P.L. 101-625, 
November 28, 1990.)
     Required submission of an acceptable program from 
the grantee, showing details of conditions, proposed 
activities, financial feasibility, and similar information for 
HUD approval. Required that grants be used to assist 
rehabilitation of rental properties located in neighborhoods 
whose median income did not exceed 80 percent of the area 
median, and whose units would be affordable to lower-income 
tenants.
     Limited grants to not more than 50 percent of 
rehabilitation costs and not more than $5,000 per unit, with 
possible exceptions by HUD, and only sufficient to correct 
substandard conditions, make essential improvements, and repair 
major systems in danger of failure.
     Required that 100 percent of funds be used for 
benefit of lower-income families, except that HUD could permit 
waiver to not less than 50 percent under certain circumstances.
     Required that owners agree not to discriminate 
against tenants receiving Governmental assistance, and not to 
convert to condominiums or cooperatives for at least 10 years; 
and that HUD assure an ``equitable share'' of funds be used for 
families with children, and that priority be given to projects 
with units in substandard condition housing very low-income 
families.
  Housing Development Grants (HoDAG)
     Provided that grants be made to eligible areas 
through competition, with awards based on comparative severity 
of housing shortages, availability of other funds to reduce the 
Federal share, the recipient's past record in meeting housing 
needs, and other criteria. (Repealed by the National Affordable 
Housing Act, P.L. 101-625, November 28, 1990.)
     Provided that HUD establish a list of eligible 
areas, based on shortage of decent affordable rental units, to 
be determined by standards taking into account area poverty, 
occupancy of substandard units, vacancy rates, and other 
criteria, with priority to proposals providing more than the 
minimum number of lower-income units and in areas where waiting 
lists for housing assistance were relatively long or families 
receiving assistance required an excessive time to find units.
     Provided that grant funds could be used for grants 
or loans, interest reduction payments, or other assistance for 
new construction or substantial rehabilitation of residential 
rental properties available to lower-income families, with 
assistance amounts limited to 50 percent of total costs.
     Required owner agreement to conditions similar to 
those in the rental rehabilitation program, but with the 
requirement that at least 20 percent of the units be occupied 
by lower-income persons or families for at least 20 years.
     Established procedures for making requests for 
grants, for enforcement of requirements by the grantee, for 
meeting environmental and labor standards, for making reports, 
etc.

Other Program Amendments and Extensions
  FHA Mortgage Insurance Programs
     Authorized commitments to insure mortgages under 

Title II of the National Housing Act of principal amounts 
aggregating $50.9 billion in each of FYs 1984 and 1985.
     Abolished HUD's setting of maximum interest rates 
for FHA-insured loans, leaving them to be set by negotiation 
between borrower and lender.
     Approved insurance of a number of alternative 
mortgage instruments, up to 10 percent of the loans insured in 
the previous year, including indexed mortgages, in which the 
monthly payment and outstanding balance is adjusted in 
accordance with a selected price index; adjustable rate 
mortgages on single-family homes, in which the effective 
interest rate is adjusted periodically in accordance with a 
national interest rate index, limited to an increase of not 
more than one percent annually, and not more than 5 percent 
over the term of the mortgage; and shared appreciation 
mortgages, in which the mortgagee shares in any increase in any 
appreciated value, in exchange for a lower interest rate, set 
in accordance with criteria established by HUD.
     Authorized insurance of graduated payment and, for 
not more than 5,000 units, shared appreciation mortgages on 
multifamily structures, subject to a number of conditions; and, 
subject to HUD approval, of mortgages not providing for 
complete amortization.
     Required HUD to report within a year on an 
evaluation of the use of home equity conversion mortgages for 
the elderly, including the risks, benefits, and potential for 
acceptance for such mortgages.
     Amended details in the operation of several of the 
insurance programs, including mortgages in Hawaii on leased 
property, mortgages on single-family residences on Indian 
reservations; on manufactured homes; treatment of insurance 
premiums in determining the size of the mortgage; maximum loan-
to-value ratios; payment of claims to mortgagees without 
acquisition; alternative mortgage forms for multifamily loans; 
limitations on prepayment of multifamily mortgages; and others.
  Flood and Crime and Riot Insurance Programs
     Extended the National Flood Insurance Program and 
the Federal Crime Insurance Program, but transferred the 
Federal Insurance Authority (FIA) from HUD to the Federal 
Emergency Management Agency (FEMA).
     Prohibited any increase in flood insurance rates 
until October 1, 1984, and required the FIA Administrator to 
report by then on the rate structure.
     Directed FEMA to finance a contract study of the 
feasibility of covering damage or loss from sinkholes under the 
flood insurance program, and authorized $1 million for this 
purpose.
     Terminated the Federal Riot Reinsurance Program as 
of November 30, 1983.
  Regulatory and Other Programs
     Defined several terms in the Real Estate 
Settlement Procedures Act of 1974 (P.L. 93- 533, December 22, 
1974) and clarified some requirements.
     Ended the New Communities program by repealing 
Title IV of the Housing and Urban Development Act of 1968 (P.L. 
90-448, August 1, 1968) and Title VII, Part B of the Housing 
and Urban Development Act of 1970 (P.L. 91-609, December 31, 
1970), except for sections necessary to permit HUD to carry on 
contractual obligations and liquidation activities.
     Amended the Solar Energy and Energy Conservation 
Bank Act (P.L. 96-294) to broaden the definitions of energy 
conserving improvements, to increase eligibility, which had 
been restricted by regulation, and to make other changes in 
conditions for receiving grants and in Bank procedures. 
Secondary Mortgage Market Programs
     Authorized GNMA to make commitments to guarantee 
payment of mortgage-backed securities in the amount of $68.250 
billion in each of FYs 1984 and 1985.
     Terminated GNMA commitment and purchase authority 
for purposes of its special assistance functions.
     Terminated GNMA commitment and purchase authority 
under the Emergency Home Purchase Assistance program.
Rural Housing Amendments of 1983
     Brought definitions of income, adjusted income, 
low-income families and very low- income families in FmHA 
programs into conformity with those in HUD programs.
  Income-Targeting and Rent Payments
     Required that not less than 40 percent nationally 
and 30 percent in each State of home-owner units financed under 
Section 502 be occupied by very low-income families.
     Required, to the extent FmHA rental assistance was 
available, that not more than 25 percent of previously 
available units and 5 percent of newly occupied units developed 
under the Section 515 rental program be occupied by low, not 
very-low, income families; if assistance from any source was 
available, all newly occupied units were to be rented to very 
low-income families.
     Limited eligibility for improvement or 
modernization loans or grants under Section 504 to very low-
income applicants, and made the maximum amount of such loans or 
grants subject to FmHA determination.
     Made rent payments by families assisted by the 
FmHA rental assistance program the same as those required in 
HUD programs.
  Housing Preservation Grants
     Established a new loan and grant program to 
provide assistance for the rehabilitation of owner-occupied and 
rental housing for low- and very-low income occupancy.
     Defined grantees as private nonprofit 
organizations, Indian tribes, and local, county and State 
governments, who would use grants to provide loans or grants 
for repairs and improvements, interest reduction payments, and 
in other ways reduce costs so as to keep housing affordable by 
low- and to the extent feasible very low-income families.
     Authorized use of Section 8 housing vouchers to 
minimize displacement from rehabilitated units.
     Required that funds be distributed among States by 
formula, based on relative size of rural population, rural 
poverty, and rural amounts of substandard housing, but among 
grantees within a State on the basis of applications describing 
proposed activities and conformity with a number of 
requirements set forth in the statute.
     Authorized appropriations of $100 million in each 
of FY 1984 and 1985 for this new program.
  Other Amendments
     Made manufactured homes, their lots, and rental 
parks eligible for both Section 202 and Section 515 loans, 
subject to conditions relating to physical and energy 
standards.
     Amended details of other assistance programs, with 
respect to recipients and conditions of the assistance.

           Secondary Mortgage Market Enhancement Act of 1984

                  (Public Law 98-440, October 3, 1984)

Mortgage-Related Securities
     Amended the Home Owners Loan Act of 1933 (P.L. 73-
43, June 13, 1933) and other securities and banking laws to 
remove technical barriers to trading and investment in private, 
mortgage-related securities rated in the top two investment 
categories by a nationally recognized rating company.
     Preempted State banking investment and ``Blue 
Sky'' securities laws which presented impediments to trading 
and investment in these securities.
Amendments to Secondary Mortgage Market Programs
     Clarified that the permissible maximum for loan 
purchases by FNMA and FHLMC applied to the full original 
principal, even if only a participation were purchased.
     Authorized both enterprises to purchase 
subordinate (second) mortgages.
     Authorized FHLMC to purchase manufactured housing 
loans and State agency insured loans.
     Increased the ceilings on multifamily mortgage 
loans eligible for purchase.

   Housing and Community Development Technical Amendments Act of 1984

                 (Public Law 98-479, October 17, 1984)

     Adopted technical and clarifying amendments to the 
legislation affecting community development block grants in the 
Housing and Urban-Rural Recovery Act of 1983 (HURRA) (P.L. 98-
181, November 30, 1983), and modified some of the 
qualifications for receiving CDBG grants.
     Adopted technical and clarifying amendments to the 
legislation affecting assisted housing programs in HURRA, and 
made minor programmatic amendments.
     Made cities with populations of at least 450,000 
with rental vacancy rates of less than 10 percent eligible to 
apply for HoDAG grants, regardless of the minimum standards for 
eligibility in the original Act, and made technical and 
clarifying amendments to the Section 17 programs.
     Amended a number of provisions of housing law, 
including minor changes in some FHA insurance programs, 
expanding the powers of the National Corporation for Housing 
Partnerships, and requiring the Solar Energy and Energy 
Conservation Bank to establish within 90 days criteria for 
allocation of assistance and to allocate all available funds at 
the same time.
     Adopted technical and clarifying amendments to 
changes in rural housing programs made by HURRA.

              Stewart B. McKinney Homeless Assistance Act

          (Titles IV and V, Public Law 100-77, July 22, 1987)

Title IV--Housing Assistance
  Comprehensive Homeless Assistance Plan
     Authorized assistance to States, metropolitan 
cities, or urban counties under Title IV programs, provided 
that otherwise eligible recipients prepare a Comprehensive 
Homeless Assistance Plan (CHAP), describing the need for 
assistance, the available facilities and services, a strategy 
for meeting these needs, and how the Federal assistance would 
be used, for review and acceptance by HUD. (Superseded by 
requirement for a Comprehensive Housing Affordibility Strategy 
(CHAS) established in the National Affordable Housing Act, P.L. 
101-625, November 28, 1990.)
     Required grantees annually to review progress made 
in carrying out the plan and to report results of the review to 
HUD.
  Emergency Shelter Grants Program
     Authorized HUD to make grants, by formula, to 
enable States, metropolitan cities, urban counties, and 
nonprofit organizations to provide emergency shelter for 
homeless individuals.
     Provided grants could be used for renovation, 
rehabilitation or conversion of structures, their maintenance 
and operation, and provision of other essential services.
     Required grant recipients to agree that assisted 
buildings be used for homeless shelters for at least three 
years, or at least ten years if major rehabilitation or 
conversion was funded, and to provide equal matching funds.
     Authorized appropriation of $100 million for FY 
1987 and $120 million for FY 1988.
  Supportive Housing Demonstration Program
     Established a demonstration program to provide 
grants on a competitive basis to States, local governments, and 
nonprofit organizations, to develop innovative approaches for 
providing supportive housing for homeless persons, particularly 
deinstitutionalized individuals, others with mental 
disabilities or other handicaps, and homeless families with 
children.
     Defined ``supportive housing'' as housing and 
supportive services in both transitional housing, i.e., housing 
that facilitates movement to independent living, and permanent 
housing for handicapped homeless persons.
     Authorized HUD to provide assistance in the form 
of acquisition or rehabilitation loans of up to $200,000, 
grants for moderate rehabilitation, or payments for partial 
support for operating costs.
     Required applicants to file an application 
describing the project and expected assisted population, 
assuring that the project would be operated for at least 10 
years, and meeting other HUD requirements.
     Required complete repayment of the loan if the 
assisted project were used for supportive housing for fewer 
than 10 years, with the repayment to be reduced by 10 
percentage points for each year it was so used after 10 years 
before closing.
     Required recipients to provide equal matching 
funds and prohibited use of grant or matching funds to replace 
other public funds previously used for assistance to the 
handicapped or homeless.
     Authorized appropriation of $80 million for FY 
1987 and $100 million for FY 1988.
  Supplemental Assistance for Facilities for the Homeless
     Authorized HUD to provide additional funding for 
projects funded under the emergency shelter or supportive 
housing programs, if available funding was insufficient and no 
other source of funding could be found.
     Required repayment of the advance if the project 
provided homeless assistance for fewer than 20 years, on the 
same pro-rated basis as with supportive housing loans.
     Provided that not more than $10,000 of a grant 
could be used for outpatient health care, and that grants for 
that purpose be made only in consultation with the Department 
of Health and Human Services.
     Authorized appropriations of $25 million in each 
of FYs 1987 and 1988.
  Single-Room Occupancy Dwellings
     Authorized use of the Section 8 Moderate 
Rehabilitation program for moderate rehabilitation of single-
room occupancy dwellings for the homeless.
     Required that any unit assisted under this 
provision have a sprinkler system and hard- wired smoke 
detectors, as well as meeting other State and local fire and 
safety laws. Required contributions contracts be for 10 years, 
with the possibility for renewal for 10 years at HUD 
discretion.
     Authorized appropriations of $35 million for each 
of FYs 1987 and 1988.

Title V--Identification and Use of Surplus Federal Property
     Required HUD to collect information from other 
Federal agencies on underutilized properties, to determine 
their suitability for use as facilities for the homeless, and 
to notify the agency of its decision, and to be notified by the 
agency of its response to a determination that its property was 
suitable.
     Required that criteria for determining suitability 
be determined by HUD in consultation with the Secretary of 
Health and Human Services and the Administrator of General 
Services.
     Required the Secretary of Health and Human 
Services and the Administrator of General Services to make 
suitable properties available to private nonprofit 
organizations, local governments, and States, by means of 
leases of at least a year's duration.

             Housing and Community Development Act of 1987

                 (Public Law 100-242, February 5, 1988)

Housing Assistance
     Authorized a PHA, or a Section 8 project with more 
than 2,000 units, with HUD approval to permit a family to pay 
for a three-year period a fixed monthly rent instead of 30 
percent of income, provided the rent covered the operating cost 
and debt service attributable to a unit of the same size.
     Required the Comptroller General to report on the 
size, manner of determination and effect on tenant rent 
payments of utility allowances and payments.
     Required HUD to include in its annual report the 
characteristics of assisted families, including family size, 
source of income, age, race and sex of family members, and 
whether the head of family or spouse is a member of the armed 
forces.
     Amended restrictions on providing housing 
assistance to non-resident aliens to permit continued provision 
of assistance to avoid division of a family in which the head 
of household or spouse is legally assisted, or to defer 
termination of assistance for up to three years to permit 
``orderly transition'' to other housing.
  Public Housing
     Authorized HUD to provide a capital grant for 
development or acquisition costs of public housing, instead of 
paying debt service on bonds issued for the purpose.
     Provided that public housing development could be 
funded only if the PHA has certified that 85 percent of its 
units are maintained to meet Section 8 housing quality 
standards, or will be so maintained when funded modernization 
or modernization for which a funding application has been filed 
is completed; that the development will replace units lost 
through demolition or disposition or is needed to comply with a 
court order; that it has family housing demand that cannot be 
met with Section 8 certificates or vouchers; or that HUD has 
approved it under a provision which gave HUD authority to use 
up to 20 percent of development funding for substantial 
reconstruction or redevelopment of existing public housing.
     Authorized public housing agencies to give 
priority for admittance to public housing projects for the 
elderly to families headed by persons between 50 and 62 years 
of age, if it found there was an insufficient number of 
applicants 62 years old or older.
     Amended the Public Housing Child Care 
Demonstration Program (established in the Housing and Urban-
Rural Recovery Act of 1983, P.L. 98-181, November 30, 1983), to 
require that HUD make grants on a competitive basis to 
nonprofit organizations to provide child care services of the 
type called for in the 1983 Act, in space provided by the PHA; 
required HUD to report after three years on the feasibility of 
a permanent program. Authorized a set-aside from CDBG 
appropriations of $5 million for FY 1988 and $5.21 million for 
FY 1989.
     Required HUD to pay operating subsidies on the 
basis of the performance funding system, but with revisions 
made in consultation with PHAs to reflect increases in 
insurance costs, to provide for PHA's sharing in savings from 
more efficient use of energy, and to establish a review process 
for revisions to an agency's allowable expense level to correct 
inequities and for changed conditions.
     Amended the Comprehensive Improvement Assistance 
Program (CIAP) to provide different requirements for the 
comprehensive plan submitted by PHAs operating fewer than 500 
units and those operating 500 or more units, and different 
purposes for which they could expend funds; to give greater 
flexibility to the PHAs in carrying out the plan; to enlarge 
the list of improvements eligible for special purpose funding; 
and to require HUD to complete the study of the need for 
modernization and to report on long-term capital needs for 
rehabilitation and on methods for allocating funds among the 
PHAs.
     Strengthened controls on demolition or disposition 
of public housing units by prohibiting approval of a request 
for such removal unless the PHA developed a plan, to be carried 
out within six years, to replace each unit removed with another 
unit provided through development of new public housing, or use 
of 15-year certificates or other similar State or local 
assistance, either project-based or tenant-based if tenant-
based assistance is found to be feasible; provided relocation 
assistance; and did not take any action until all tenants to be 
displaced were in fact relocated to suitable housing.
     Resident Management and Homeownership. Established 
procedures by which an elected resident council could set up a 
resident management corporation (RMC), and specified RMC 
composition, permissible activities and responsibilities, and 
rights to funding.
     Permitted HUD, on request, to waive for a RMC any 
regulatory requirements it determined unnecessarily increased 
costs or restricted income. Required HUD to report within six 
months on statutory waivers it determined were appropriate or 
necessary.
     Required HUD, to the extent budget authority was 
available, to provide up to $100 thousand for technical 
assistance to a resident council or RMC, to establish a RMC or 
develop its management capability, and to identify residents' 
social support needs and obtain such support; authorized use of 
$2.5 million in each of FYs 1988 and 1989 from CIAP funding for 
this purpose.
     Provided that a RMC which had managed a project 
effectively for at least three years could receive assistance 
to purchase the project from the PHA, if it met a number of 
conditions set forth in the law, including replacement of the 
same number of units as rental housing for the same income 
families as public housing tenants; payment of debt service on 
bonds would continue, but operating subsidies would be 
discontinued on the date of the purchase. Permitted resale of 
units by the RMC to lower-income families resident or eligible 
to be resident in public housing, subject to a number of 
restrictions.
     Energy Efficiency. Required HUD to carry out a 
demonstration program of energy efficiency, working with a 
technology organization that would work with public housing 
agencies to test a variety of energy-efficient designs in 100 
separate housing units in four States, in a variety of housing 
types. Authorized use of $4.7 million of public housing 
development funds authorized for FY 1988.
     Public Housing Comprehensive Transition 
Demonstration. Established a new program which HUD was required 
to carry out in Charlotte, N.C., and permitted to carry out in 
10 additional places, to demonstrate how effective provision of 
remedial education and job training would be in promoting a 
family's transition to private housing.
     Required that a seven-year contract be executed 
with newly entering families in public housing to provide 
remediation services for up to two years, and counseling and 
other help during a subsequent five-year ``transition'' 
employment period.
     Provided that rents could increase during the 
transition period as earnings increased, but required the PHA 
to encourage savings, including establishment of an escrow 
account, during the seven-year period.
     Required termination of the family's participation 
in the program if its income exceeded 80 percent of area median 
income.
     Required transition out of public housing 
residence by the end of the seven-year period, with the 
possibility of extension of the period by the PHA for good 
cause.
  Section 8 Assistance
     Made technical amendments to ways of determining 
fair market rents and to contract terms with PHAs for receiving 
payments.
     Changed the Section 8(o) voucher program from a 
demonstration to a regular assistance method, permitted annual 
adjustment in rents (instead of twice in five years), and 
authorized HUD to set aside 5 percent of budget authority 
available for the voucher program for an adjustment pool.
     Established administrative fees to PHAs for both 
the certificate and voucher programs at 8.2 percent of the fair 
market rent for a two-bedroom unit, plus a flat fee for 
preliminary expenses for each new family, not to exceed $275, 
subject to appropriations.
     Provided for ``portability'' of certificates and 
vouchers, i.e., permitting a recipient family to use its 
assistance to rent a unit within the same or a contiguous 
metropolitan area as the one in which the approving PHA is 
located.
  Rental Rehabilitation and HoDAG Programs
     Revised maximum per-unit grants for rehabilitation 
to permit higher payments for larger units, up to $8,500 for a 
three-or-more bedroom unit. Provided that families dislocated 
from housing being rehabilitated under the program or having to 
pay over 30 percent of income for rent, whether in relocation 
housing or in the rehabilitated unit, should receive Section 8 
assistance.
     Made minor administrative and programmatic changes 
in both programs.
  Housing for the Elderly and Handicapped
     Housing for the Handicapped. Established 
procedures to develop separate facilities for the nonelderly 
handicapped in a variety of arrangements, apart from units in 
Section 202 elderly housing, and required that not less than 15 
percent of future appropriations for Section 202 be used for 
these facilities.
     Provided that, subject to appropriations, 
operating costs would be covered by means of an operating 
subsidy payment rather than through Section 8 payments, under a 
20- year contract.
     Required occupancy by lower-income families, with 
rent payments as in assisted housing. Defined ``nonelderly 
handicapped family'' as a family whose head (and spouse, if 
any) is handicapped and under 62 years of age.
     Amended the requirement that Davis-Bacon wages be 
paid for construction under Section 202 to apply only to 
buildings designed for occupancy by 12 or more eligible 
families.
     Congregate Services. Made the program permanent by 
deleting the requirement that HUD report on the desirability of 
such a move.
     Required HUD to contract with a university or 
research institution to report on alternative methods of 
providing services to elderly persons in congregate housing.
  Other Assistance Programs
     Made selection of tenants to receive rent 
supplement assistance subject to the same preferences as in 
other assistance programs.
     Authorized HUD to provide grants to counseling 
agencies for counseling of homeowners who, because of 
unemployment, are delinquent, or face the prospect of 
delinquency, in making mortgage payments on their principal 
residence; authorized appropriations of $3.5 million for each 
of FYs 1988 and 1989 to carry out this program.
     Strengthened requirements that a project owned by 
HUD or whose mortgage is held by HUD be continued in low- and 
moderate-income occupancy to the extent to which it is so 
occupied, both while under HUD's control or when sold, with 
right of first refusal in its purchase given to local agencies 
or the State housing finance agency.
     Established a demonstration program to be carried 
out with not more than four State housing finance agencies 
(HFA) to test the effectiveness of disposing of distressed 
multifamily properties through a cooperative arrangement in 
which the HFA provides an FHA-insured loan to the purchaser of 
the property.
     Amended the flexible subsidy program established 
by the Housing and Community Development Amendments of 1978 
(P.L. 95-557, October 31, 1978) to add projects assisted by 
Section 23 and Section 202 to those eligible for flexible 
subsidy assistance, and to add a low-interest loan for capital 
improvements to the permissible uses of the fund, subject to a 
number of conditions and regulations, including a 20 percent 
matching contribution from the owner of the project.
Emergency Low Income Housing Preservation Act of 1987
     Found that achievement of national housing goals 
was threatened by the prospective loss of housing units from 
the rental, low-income assisted stock through prepayment of 
mortgages after 20 years, permissible under the mortgage 
contract in the HUD Section 221(d)(3) and Section 236 programs 
and FmHA Sections 514 and 515 programs, and expiration of 
Section 8 assistance contracts.
  Prepayment of Sections 221(d)(3) and 236 Mortgages
     Adopted procedures, to be in effect for two years 
while a permanent program was developed, giving HUD power to 
control prepayment of mortgages on assisted housing.
     Required the owner wishing to prepay to submit a 
plan showing the intended future use of the property, and the 
effect on the tenants and the low-income rental stock in the 
community, and conform with the other procedures established in 
the Act.
     Prohibited HUD from approving the prepayment 
unless it found that it would not materially harm current 
tenants, that a sufficient supply of affordable housing existed 
in the community, that the plan had been approved by the 
appropriate State agency as being in accordance with a State 
housing strategy developed in accordance with provisions in 
this Act, and in other ways met the requirements of the Act.
     Authorized HUD to offer the owner a number of 
incentives to maintain the low- income character of the project 
in lieu of prepayment, to permit the owner to receive a fair 
return on his investment.
  Section 8 Contract Termination
     Required that owners of housing receiving Section 
8 assistance give one year's notice (or 90 days in the case of 
certificates or vouchers) of intent not to renew the contract, 
and required HUD to determine the legality of the failure to 
renew and to take any permissible action, including raising 
rent to the maximum Section 8 rent in the area, to prevent the 
termination.
  Prepayment of Sections 514 and 515 Rural Housing Mortgages
     Required that borrowers who wished to prepay loans 
entered into before December 21, 1979, must apply to FmHA for 
approval.
     Required FmHA to make reasonable efforts to 
persuade owners to agree to maintain the low-income housing, 
including offering a number of specified inducements so the 
owner can receive a fair rate of return.
     Required owners, if still wishing to prepay, to 
offer the property for sale at its fair market value to a 
qualified public or nonprofit agency, which may be assisted in 
designated ways by FmHA to effect the purchase; permitted FmHA 
to accept transfer of up to 5,000 units each fiscal year.
     Authorized FmHA to accept prepayment if no 
qualified agency made an offer to purchase the property within 
180 days of the owner's making the offer to sell.

Rural Housing
     Required FmHA to carry out a demonstration rural 
rental voucher program in FYs 1988 and 1989, to the extent 
approved in appropriation acts, to assist up to 7,500 units in 
not more than five States each year, using a payment standard 
like that used in the HUD voucher program under Section 8(o); 
provided that the program could operate in a State only if the 
State FmHA administrator certified, after an inventory of all 
housing, that there was sufficient suitable housing available 
for occupancy by voucher holders.
     Made restriction of housing assistance to aliens 
by FmHA conform to the procedures required in HUD programs.
     Changed permission for escrow accounts for 
insurance and tax payments for borrowers under the Section 502 
homeownership program to a requirement that FmHA establish such 
accounts.
     Required FmHA to carry out a three-year 
demonstration program of guaranteeing loans under the Section 
502 program made by private lenders, rather than making direct 
FmHA loans; provided home-purchasers must be of moderate 
income, below the area median.
     Directed HUD to carry out a demonstration program 
to determine the effectiveness of using the Section 17 rental 
rehabilitation program in rural areas, and a study of the 
availability of private residential credit in communities of 
under 2,500 population.
     Made a number of definitional and technical 
changes to various parts of the FmHA programs.

Mortgage Insurance and Secondary Mortgage Market Programs
  Amendments to FHA Insurance Programs
     Gave permanent authorization to all FHA insurance 
programs except Section 235, instead of requiring periodic 
reauthorization; reauthorized Section 235 to September 30, 
1989. Authorized commitments to insure mortgages aggregating 
$100 billion in FY 1988 and $104 billion in FY 1989.
     Limited the insurance premium for home mortgages 
to not more than 3.8 percent of the original obligation.
     Increased to 150 percent, from 133 percent, the 
amount by which insurable mortgage amounts could exceed 
statutory limits in high-cost areas.
     Increased the per-unit limitations on mortgage 
amounts in multifamily insurance programs, and the percentage 
amounts by which HUD could exceed these limits under certain 
circumstances.
     Required that investors make no less than a 25 
percent downpayment to obtain home mortgage insurance, except 
in the rehabilitation loan program under Section 203(k). Made 
changes in programs authorizing alternative types of mortgages 
by permitting refinancing of graduated payment mortgages at the 
outstanding balance, rather than the initial amount, if this 
action reduced the monthly payment; increased the authority to 
insure adjustable rate home mortgages to 30 percent of the 
aggregate number insured in the previous year; and established 
a three-year demonstration program, limited to 2,500 mortgages, 
to determine the need for, best types of, and appropriate means 
of providing home equity conversion mortgages for elderly 
homeowners.
     Made a number of technical and corrective 
amendments in various programs, and amendments to lower risk 
and reduce losses in the insurance funds.
  Amendments to Secondary Mortgage Market Programs
     Increased FNMA authority to issue commitments to 
insure mortgage-related securities by $150 billion in FY 1988 
and $156 billion in FY 1989.
     Prohibited FHLMC from imposing an annual 
limitation on its mortgage purchases. Made permanent FNMA and 
FHLMC authority to purchase second mortgages on single-family 
properties.
     Prohibited imposition of fees on activities 
engaged in by FNMA or FHLMC, except for payment for services 
performed on their behalf by the Treasury or Federal Reserve 
System.

Community Development and Miscellaneous Programs
  Community and Neighborhood Development and Preservation
     Provided that recipients of CDBG or UDAG funds 
have a relocation plan and provide relocation benefits to 
persons displaced from their homes by the funded activities, as 
well as one-for-one replacement of low- and moderate-income 
housing units demolished or made vacant by these activities; 
defined replacement housing to include provision of Section 8 
rental assistance.
     Community Development Block Grants. Increased the 
percentage of CDBG funds that must be targeted to activities 
that principally benefit low- and moderate-income persons from 
51 percent to 60 percent.
     Amended definitions of metropolitan cities and 
urban counties to permit phasing in and out of funding for 
places which have gained or lost population.
     Expanded the list of activities eligible for CDBG 
funding.
     Increased and made more specific the requirements 
upon a grantee to have a citizen participation plan in 
developing the community development program.
     Urban Development Action Grants. Amended the 
process for selecting recipients of UDAG grants by eliminating 
the requirement that comparative economic distress be the 
primary criterion, adding a set of criteria relating to the 
effectiveness of the proposed actions in promoting economic 
development, and consideration of whether a place had received 
a grant in the previous two years, in addition to the two sets 
already included which related to economic distress and 
deterioration; provided a point system of weighing the three 
sets, with each receiving almost equal weight, plus an 
additional one or two points for places which had not received 
grants; required HUD to allocate 65 percent of funds on the 
basis of all the criteria and 35 percent on the basis of the 
newly added criteria.
  Flood and Crime Insurance Programs
     Limited any increase in premium rates until 
September 30, 1989 for flood insurance programs under the 
National Flood Insurance Act of 1968 to a prorated annual rate 
of 10 percent, and for crime insurance under Part C of Title 
XII of the National Housing Act to not more than a prorated 
annual rate of 5 percent.
     Provided, under certain stated conditions, for 
payment under the flood insurance program for structures 
certified by an appropriate State or local agency to be subject 
to imminent collapse or subsidence because of erosion or 
undermining by wave action or excessive currents of water.
  Miscellaneous Programs
     Established a Fair Housing Initiatives Program to 
make grants to State or local governments or their agencies or 
to private entities to assist them in carrying out activities 
to eliminate discriminatory housing practices, promote 
enforcement of fair housing laws, and educate the public 
concerning rights and obligations under these laws; authorized 
appropriations of $5 million in each of FYs 1988 and 1989.
     Required HUD and FmHA to collect data and report 
at least annually to Congress on the racial and ethnic 
characteristics of people eligible for assistance or being 
assisted under each community development, housing assistance, 
and mortgage insurance and guarantee program that each agency 
conducted.
     Amended the Home Mortgage Disclosure Act of 1975 
(P.L. 94-200, December 31, 1975) to provide permanent 
authorization, and to extend coverage to mortgage banking 
subsidiaries of bank or savings and loan holding companies, 
unless they were approved by HUD for insurance under Titles I 
and II of the National Housing Act.
     Amended the Lead-Based Paint Poisoning Prevention 
Act (P.L. 91-695) to cover housing constructed prior to 1978, 
rather than 1950; to require that procedures established by HUD 
to detect poisoning hazards be based on criteria relating to 
the condition of the housing, not the health of the residents; 
to require inspection in HUD-associated housing of painted 
surfaces by approved techniques, with revelation of results to 
potential purchasers or tenants of the housing for surfaces 
showing levels above an approved maximum; to require specific 
inspection and abatement procedures in public housing, using 
CIAP funds; to require HUD to test abatement methods in HUD-
owned single-family and multifamily housing to determine their 
relative reliability, cost-effectiveness and safety; and to 
require HUD to present various reports and proposed legislation 
to Congress within specified time periods.

Nehemiah Housing Opportunity Grants
     Established the Nehemiah housing program and 
Nehemiah Housing Fund to provide grants to nonprofit 
organizations to assist moderate-income families become 
homeowners of newly built or rehabilitated housing in lower-
income areas.
     Provided that assistance be in the form of a 
noninterest-bearing second mortgage of not more than $15,000, 
repayable upon rental or transfer of the housing unit.
     Established criteria for selection of grantees by 
HUD, and requirements for the type and size of construction or 
rehabilitation projects and other conditions for receipt of a 
grant.
     Authorized appropriation of $25 million for FY 
1988 and $100 million for FY 1989.
Enterprize Zone Development
     Provided for HUD, in consultation with other 
Federal agencies, to designate up to 100 areas as enterprise 
zones, of which at least a third shall be in nonmetropolitan 
places of under 50,000 population.
     Required that the proposed area be nominated by 
the local government and State in which it is located, be 
designated competitively on the basis of need, and meet a 
number of criteria relating to size, location, degree of 
poverty, unemployment, and economic decline.
     Required that the State and local governments 
agree to a specified course of action, such as a reduction of 
taxes or fees, an increased level of services, and other 
actions designed to reduce the burdens on businesses and 
workers in the zone.
     Prohibited actions to assist an enterprise in 
relocating from another area to the zone.
     Required HUD to coordinate all its programs 
carried on within the zone, and authorized it to waive or 
modify regulations pertaining to activities within the zone in 
order to further job creation and economic development, but 
prohibited HUD from waiving regulations against racial and 
other forms of discrimination, or if the waiver would violate a 
statutory requirement or would present a significant risk to 
health or safety.

                       Indian Housing Act of 1988

                  (Public Law 100-358, June 29, 1988)

     Amended the United States Housing Act of 1937 to 
establish an assisted housing program for Indians distinct from 
the public housing program, by providing that no amendment to 
the public housing law would apply to Indian housing unless 
explicitly so stated. Exempted Indian public housing from the 
provision requiring PHAs to permit pet ownership in public 
housing.
     Amended the definition of terms relating to 
assisted housing to conform with the requirements of this Act.
  Mutual Self Help Homeownership Opportunity Program
     Established a new program as named above, 
requiring HUD, subject to appropriations, to assist Indian 
families on reservations to become homeowners, including owners 
of cooperatives.
     Required HUD to carry out this program by make 
grants to Indian housing authorities to develop, acquire, 
improve and operate housing projects the units of which were to 
be sold to individual families.
     Restricted families eligible for assistance by the 
PHA to lower-income families, except that the higher of 10 
percent of the units or five dwelling units could be occupied 
by those with higher incomes if it could be demonstrated to HUD 
that they had a need for housing that could not be met 
otherwise; and to Indian families, except for non-Indian 
families living on a reservation whose presence could be shown 
to be essential to Indian well-being and whose housing needs 
could not reasonably be met otherwise.
     Required a resident family to contribute to 
development costs at least $1,500 value in money, labor, or in 
kind, and to make monthly payments equal to the higher of 15 to 
30 percent of adjusted income or IHA monthly operating costs 
for the dwelling, excluding any public housing operating 
assistance received from HUD.
     Required that the family be given an opportunity 
to purchase its dwelling under a number of arrangements, 
including contributions under self-help provisions of Section 
523 of the Housing Act of 1949 (P.L. 81-171, July 15, 1949).
     Required a number of supportive actions by HUD for 
the program and reports on its progress.

                    Fair Housing Amendments of 1988

                (Public Law 100-430, September 13, 1988)

     Amended the Fair Housing Act of 1968 (Title VIII, 
P. L. 90-284, April 11, 1968) to strengthen enforcement of its 
provisions, by giving HUD the power to bring complaints of 
discriminatory action before an administrative law judge and to 
a civil court for enforcement, if conciliation failed; 
requiring the Justice Department to represent a complainant in 
a civil suit if HUD had found cause for action; providing fines 
and punitive damages in instances of discriminatory actions; 
and in other ways changing administrative and legal procedures.
     Added families with children and physically 
handicapped and mentally impaired persons to classes of persons 
protected against discrimination in the purchase or leasing of 
a housing unit; and added to the definition of discrimination 
failure to permit modification of existing premises to permit 
occupancy by a handicapped person or to construct new 
multifamily buildings in designated ways which would permit 
such occupancy.
     Exempted housing for older persons from the 
prohibition of discrimination against families with children; 
defined housing for older persons as housing provided under a 
State or Federal housing program for the elderly, housing 
intended to be and solely occupied by persons 62 years old or 
older, or housing with facilities and services for the elderly 
of which at least 80 percent of the units are occupied by 
families in which at least one person is 55 years old or older.
     Added requirements for HUD reports to Congress on 
actions taken and progress toward fair housing under the Act, 
and data on characteristics of persons and households who fall 
under the protection of the various fair housing acts and 
regulations and of those who apply for the benefits of, or are 
assisted under, HUD programs.

     Stewart B. McKinney Homeless Assistance Amendments Act of 1988

        (Titles IV and V, Public Law 100-628, November 7, 1988)

Title IV--Housing Assistance
     Added to eligible activities in the emergency 
shelter grants program efforts to prevent homelessness of 
persons threatened with loss of their home by a sudden loss of 
income. Authorized funding of technical assistance in operating 
or providing services in new as well as existing structures, in 
the Supportive Housing Demonstration Program.
     Added a requirement for an equal match from non-
Federal sources of grants for acquisition and rehabilitation of 
structures for supportive housing.
     Modified some of the requirements for obtaining 
assistance and purposes for which assistance could be used in 
each of the types of housing programs funded under the Act.
     Required HUD to provide Congress within 12 months 
a report evaluating the impact of local rent control on the 
rate of homelessness and the supply of housing in major cities.
Title V--Surplus Property
     Added ``unutilized'' to ``underutilized'' 
properties to be made available for use for assistance to the 
homeless, and made other clarifying amendments.

  Financial Institutions Reform, Recovery, and Enforcement Act of 1989

       (Titles V, VII, and XI, Public Law 101-73, August 9, 1989)

Title V--Financing for Thrift Resolutions
  Subtitle A. Resolution Trust Corporation
     Required the RTC to market certain housing assets 
from receiverships to nonprofit organizations, public agencies, 
and qualifying households so as to maintain and increase 
ownership and rental opportunities for lower-income families.
     Required that single-family housing (including 
manufactured housing), appraised at or below the limits for 
Section 203(b)(2) of the National Housing Act ($67,500) with no 
allowance for high-cost areas, would be available for sale only 
to households with incomes not exceeding 115 percent of area 
median income, adjusted for family size, or to nonprofits or 
public agencies which agreed to make the property available for 
lower-income families (incomes not exceeding 80 percent of area 
median, adjusted for family size) for at least three months.
     Required that multifamily housing with appraised 
values not exceeding the amount for elevator-type structures 
under Section 221(d)(3)(iii) of the National Housing Act, with 
no allowance for high-cost areas, be available initially only 
to public agencies, nonprofit organizations, and for-profit 
entities with commitments to satisfy occupancy requirements 
that at least 35 percent of units be available to and 
maintained affordable by lower-income families including at 
least 20 percent of all units be for very low-income families 
(below 50 percent of area median income, adjusted for family 
size) for the remaining useful life of the property.
     Limited rents for very low-income families to 30 
percent of the adjusted income of a family whose income equaled 
50 percent of the area median, and for lower-income families to 
30 percent of the adjusted income of a family with income 
equaling 65 percent of median for the area; disallowed 
evictions for purpose of meeting low- income occupancy 
requirements and allowed for compliance by reserving all new 
vacancies for lower-income households until requirements were 
met.

Title VII--Federal Home Loan Bank System Reforms
  Part A--Federal Home Loan Bank Act Amendments
     Created the Federal Housing Finance Board (FHFB) 
to be an independent agency with responsibility for supervising 
the Federal Home Loan Banks, including ensuring that the Banks 
carry out their housing finance mission.
     Required FHFB to promulgate regulations 
establishing standards for community investment for members 
(qualified savings associations) of the Banks.
     Required each Federal Home Loan Bank to set up a 
Community Investment Program to provide funding at the Bank's 
cost of funds for community-oriented mortgage lending for 
purchase or rehabilitation of housing for families whose income 
did not exceed 115 percent of median income for the area, and 
for commercial and economic development benefiting low- and 
moderate-income families and neighborhoods.
     Required each Bank to set up an affordable housing 
program for subsiding interest rates on advances (loans) to 
members who used the funds to finance homeownership for 
families with incomes at or below 80 percent of median for the 
area, or to finance purchase, construction or rehabilitation of 
rental housing in which at least 20 percent of units were to be 
occupied by and affordable for very low-income households.
     Set annual contributions by each Bank equal to the 
greater of $50 million or 5 percent of the preceding year's net 
income for 1991 through 1993, $75 million or 6 percent for 
1994, and $100 million or 10 percent for 1995 and onward.
     Made provisions for redistributing or suspending 
the program under appropriate economic conditions, including 
the financial stability of the Banks.
  Part B--Federal Home Loan Mortgage Corporation
     Reorganized the FHLMC and included a statement of 
purpose that included providing stability in the market for 
home mortgages and providing aid specifically to the secondary 
market for mortgages for low- and moderate-income families.
     Delegated general regulatory authority over FHLMC 
to HUD, including authority to require a reasonable portion of 
mortgage purchases be related to low- and moderate- income 
housing, but in such manner that the corporation would be able 
to earn a reasonable return.

Title XI--Real Estate Appraisal Reform Amendments
     Required that the various Federal financial 
institutions regulatory agencies promulgate standards for real 
estate appraisals and that all Federally-related real estate 
transactions be in compliance with those standards by December 
31, 1991; established a State-based system of licensing or 
certifying appraisers to carry out such appraisals.

Substantive Legislation in Departments of Veterans Affairs and Housing 
 and Urban Development, and Independent Agencies Appropriation Act, FY 
                                  1990

                 (Public Law 101-144, November 9, 1989)

     Provided that persons handicapped because of AIDS 
were eligible for Section 202 housing.
     Required HUD to review assistance contracts under 
Section 235 to determine the desirability of encouraging 
refinancing; required HUD to offer financial inducements to 
lenders and mortgagors to encourage such refinancing if such 
action is warranted by the possibility of sufficient reduction 
in assistance payments.
     Increased to 185 percent (from 150 percent) during 
FY 1990 the amount by which insurable mortgage amounts could 
exceed statutory limits in high-cost areas.

     Department of Housing and Urban Development Reform Act of 1989

                (Public Law 101-235, December 15, 1989)

Reforms to HUD
  Ethics
     Housing Assistance Programs. Strengthened the 
provisions of Section 213 of the Community Development Act of 
1974 requiring allocation of housing assistance among areas by 
formula based on indicators of need.
     Required publication of the allocation of funds 
among areas, of the availability of funding under any of the 
programs, of the criteria for selection among applicants, and 
of successful applicants.
     Required applicants for assistance of more than 
$200,000 to provide information about all persons with 
pecuniary interests in the proposed project and any related 
governmental assistance expected to be received; authorized HUD 
to impose a monetary penalty of up to $10,000 for violation of 
this requirement and established procedures for so doing.
     Prohibited HUD from providing more assistance than 
necessary to provide affordable housing, taking into 
consideration expected assistance from other sources.
     Prohibited advance disclosure during the selection 
process by any HUD officer or employee of information regarding 
the selection, to anyone not authorized by the Secretary to 
receive the information; provided a number of possible actions 
in the event of violation of this prohibition, including 
imposition of a monetary penalty of up to $10,000 for each 
violation and possible criminal penalties of up to five years' 
imprisonment.
     Limited headquarter reserves from each housing 
program's funding to not more than 5 percent of available 
funds, to be used only for unforeseen needs resulting from 
disasters and other emergencies and from settlement of 
litigation, and for housing in support of desegregation 
efforts.
     CDBG Programs. Amended the designated uses of 
special purpose funds in the CDBG program and redefined the 
term ``technical assistance.''
     Required HUD to publish regulations for 
establishing criteria for selection of grantees, the criteria 
to be used in making a grant, and notification of fund 
availability, prior to making a grant.
     Waivers of Regulations Requirements and Handbook 
Provisions. Required that all waivers be made only in writing 
and with specification of grounds for approval.
     Provided regulations could be waived only by the 
Secretary or someone of Assistant Secretary rank authorized to 
issue the regulation to be waived.
     Required publication in the Federal Register at 
least quarterly of all approved waivers of regulations, with 
identifying information.
     Required maintenance of information about waivers 
of handbook provisions in indexed form available for public 
inspection for at least three years.
     Civil Money Penalties. Authorized HUD to impose a 
fine on mortgagees and lenders, of not more than $5,000 for 
each violation and not more than $1 million for any particular 
lender in a year, for violating any of an enumerated list of 
prohibited fraudulent practices; established procedures for 
imposition of penalties.
     Authorized imposition of fines of different 
amounts and following somewhat different procedures, on 
multifamily mortgagors, on Section 202 mortgagors, on GNMA 
issuers, and for land developers under the Interstate Land 
Sales Full Disclosure Act, for fraudulent practices violating 
requirements enumerated separately with respect to each of 
these programs.
     Registration of Consultants. Required that any 
person who spent money to influence a decision by HUD relating 
to the awarding of financial assistance or management action 
relating to conditions of financial assistance must keep 
records of such expenditures and report them to HUD.
     Required that any person being paid for such a 
purpose register with HUD and provide detailed information 
concerning his/her employment.
     Prohibited payment for such activity to be based 
on the amount of assistance being provided by HUD, or be 
contingent on success in obtaining an award, except under 
certain conditions where services are provided to a nonprofit 
entity.
     Authorized HUD to impose fines for violations of 
the above requirements, under procedures established in the 
Act.
  Management Reform
     Required appointment by the Secretary of a Chief 
Financial Officer to develop and maintain a financial 
management system and oversee all Departmental financial 
management activities; and of a FHA Comptroller to oversee FHA 
financial operations.
     Amended the time periods for Congressional review 
of proposed regulations to expedite HUD rulemaking.
     Authorized appropriation of $25 million to be used 
to monitor and evaluate HUD housing and community development 
programs.
     Authorized HUD, despite the termination of the 
Section 235 insurance program, to insure mortgages used to 
refinance existing Section 235 mortgages, and to offer 
incentives to mortgagors to refinance their mortgages; excess 
budget authority resulting from the refinancing was to be 
rescinded.
     Authorized HUD to impose fines on State or local 
governments or agencies for violation of provisions of the 
urban homesteading program in the sale or use of property under 
the program.
     Amended the Section 8 moderate rehabilitation 
program to provide formula allocation of funding to localities 
and competitive awarding of assistance to projects, and to 
limit the number of units in a project.
  Federal Housing Administration Reform
     Required issuance of an annual audited financial 
statement for each insurance fund.
     Repealed the program for insuring land development 
under Title X of the National Housing Act (added by Section 
201, Housing and Urban Development Act of 1965, P.L. 89-117, 
August 10, 1965).
     Prohibited insurance of mortgages on single-family 
houses that were not owner- occupied, unless the mortgagor was 
a State or local governmental or nonprofit entity.
     Amended a number of provisions in Title I and 
Title II FHA insurance programs and in the Department of 
Housing and Urban Development Act to lessen risk to the 
insurance funds and to lower the possibility of fraudulent 
actions in obtaining insurance.
     Created a Federal Housing Administration Advisory 
Board to review FHA operations and advise the FHA Commissioner 
on policy, with 15 members, of which nine were to be appointed 
by the HUD Secretary, and three each by the chairman and 
ranking minority member of the House and Senate Housing 
Subcommittees, respectively. (The Board was terminated as of 
January 1, 1995, by the Housing and Community Development Act 
of 1992, P.L. 102-550, October 28, 1992.)
     Established a Mortgagee Review Board within FHA to 
initiate and take disciplinary action, subject to court review, 
against any mortgagee engaging in actions violating FHA or fair 
housing requirements.
  Housing Preservation
     Extended the operation of the Emergency Low Income 
Housing Preservation Act of 1987 (ELIHPA) (Title II, P.L. 100-
242, February 5, 1988), which limited prepayment of mortgages 
on assisted multifamily housing, to September 30, 1990.
     Clarified that restrictions on prepayment of 
mortgages under ELIHPA also applied to termination of insurance 
by a mortgagee holding the mortgage on the covered property.
     Amended ELIHPA provisions to make public entities 
eligible mortgagors of Section 236 housing; to expand and 
clarify incentives to owners to keep projects in low- income 
use; to provide greater protection to tenants; and to protect 
HUD insurance funds.
     Required HUD to study and report to Congress the 
physical renovation needs of the privately owned, assisted 
multifamily stock, and an estimate of available and needed 
Flexible Subsidy funds for the next three years.
     Prohibited FmHA from accepting prepayment of a 
loan made or insured after the enactment of this Act.
     Authorized FmHA to guarantee loans for equity 
takeouts for Section 515 projects to keep them in low-income 
use, subject to designated procedures and requirements.
  Housing Program Extensions and Changes
     Extended the availability of ceiling rents in 
public housing to five years, from current three years.
     Authorized the sale of units in a project 
developed by a nonprofit cooperative with assistance from a 
HoDAG grant for condominium or fee simple ownership, provided a 
majority of the units in the project had three bedrooms, at 
least 80 percent of the units were initially sold to lower-
income households and their housing costs would not exceed 30 
percent of actual income; made provision for recapture of the 
grant under specified circumstances.
  Rural Housing
     Required the Department of Agriculture to publish, 
with respect to any housing assistance program, notice of 
availability of assistance, procedures for applications, and 
criteria for selection of awardees; and to maintain for public 
inspection documentation of the reasons for selection of the 
awardee and purposes for which the award will be used.
     Required an applicant to reveal any related 
assistance expected to be received from any governmental 
agency, and the name and pecuniary interest of all interested 
parties.
     Required registration and regulation of all 
persons seeking to influence the awarding of assistance, 
including civil penalties for violation of these regulations.
  National Commission on Severely Distressed Public Housing
     Established a National Commission on Severely 
Distressed Public Housing, to identify projects in such a 
condition, to assess the most promising strategies being 
followed to improve such conditions by agencies of different 
types throughout the country, and to develop a plan to 
eliminate unfit living conditions in such projects by the year 
2000.
     Provided the Commission be composed of 18 members, 
to be appointees of HUD, the chairman and ranking minority 
member of the authorizing subcommittees and of the HUD 
appropriation subcommittees of the House and Senate, with each 
appointing group appointing two elected public officials, two 
local public officials or representatives of PHAs, one tenant 
representative, and one business or labor leader or academic.
     Specified the powers of the Commission, including 
securing needed information and help from all Federal agencies.
     Required a final report within one year.
     Authorized appropriation of $2 million for FY 1990 
and $1 million for FY 1991.
  National Commission on Native American, Alaska Native, and Native 
        Hawaiian Housing
     Established a Commission as named above, to 
evaluate factors impeding development of affordable housing for 
Indians, Alaska Natives and Native Hawaiians, to evaluate 
strategies being pursued for development, management, and 
modernization of such housing, and to develop an action plan 
for such housing, specifying objectives achievable by HUD in 
cooperation with relevant parties and recommending necessary 
legislative, regulatory, or administrative actions.
     Provided for appointment of 12 members in a manner 
analogous to the Commission established in Title V, but with 
members appropriate to the purposes of this Commission, 
appointed by HUD, the chairman and ranking minority member of 
the same Congressional committees plus those of the Senate 
Select Committee on Indian Affairs.
     Authorized appropriation of $500,000 for each of 
FYs 1990 and 1991.
  Miscellaneous
     Preempted State laws providing right of redemption 
to mortgagors in foreclosure actions involving Section 312 
loans on vacant and abandoned properties.
     Established a set-aside for Indian tribes of one 
percent of appropriated funds in the Community Development 
Block Grant program, to be distributed on a competitive basis, 
administered by the HUD Office of Indian and Alaska Native 
Programs.
     Modified regulations applicable to the automatic 
annual adjustment factor in the Section 8 program.

                VIII. THE 1990s--TOWARD DECENTRALIZATION

           Cranston-Gonzalez National Affordable Housing Act

                (Public Law 101-625, November 28, 1990)

General Provisions and Policies
     Reaffirmed the national housing goal that ``every 
American family be able to afford a decent home in a suitable 
environment.''
     Established seven objectives of housing policy and 
five purposes of the Act.
     Provided that housing assistance be provided a 
jurisdiction only if it has submitted a comprehensive housing 
affordability strategy (CHAS) describing in some detail its 
housing needs for the next five years, the characteristics of 
the housing market within the jurisdiction, the proposed 
strategy and plans for meeting the needs, and the public and 
private resources and institutional structure available for 
carrying out the plans. Established procedures to be followed 
by the jurisdiction and HUD in preparation and acceptance of 
the CHAS.
     Required that the requesting jurisdiction certify 
that any request for assistance under the HOME program set up 
in this Act and the community development, housing assistance, 
and homeless assistance programs authorized in the Housing and 
Community Development Act of 1974 (P.L. 93-383, August 22, 
1974) and Stewart B. McKinney Homeless Assistance Act (P. L. 
100-77, July 22, 1987) is consistent with its CHAS strategy.
HOME Investment Partnerships Act (HOME)
     Established the HOME program to expand the supply 
of affordable housing, to strengthen the ability of State and 
local governments to achieve an adequate supply of such 
housing, to promote governmental-private partnerships in 
activities for this purpose, and to expand the capacities of 
nonprofit community housing development organizations.
     Authorized HUD to make housing funds available to 
participating State and local jurisdictions through a HOME 
Investment Trust Fund, established in this Act, to be used 
according to its CHAS for provision of affordable rental and 
owner-occupied housing.
     Required that appropriated funds be allocated by 
formula based on factors reflecting need, with 1 percent to 
Indian tribes, the remainder divided 60 percent among local 
governments and 40 percent to States, with minimums for each 
participating State and locality; provided a special set-aside 
and formula for jurisdictions proposing new construction or 
substantial rehabilitation.
     Provided that funds could be used for 
rehabilitation, new construction, or tenant- based assistance, 
with emphasis on rehabilitation and special requirements for 
new construction; required matching funds of amounts varying 
from 25 to 50 percent, depending upon the type of program; 
prohibited use for administrative expenses, for public housing 
operating subsidies, for rental assistance for families 
displaced by demolition of public housing, for extension of 
Section 8 contracts, or for preservation of assisted housing 
projects.
     Defined affordable housing as rental housing 
available to low-income families, based on specified rent 
levels and income of tenants; and housing for homeownership, as 
housing selling for less than 95 percent of the median price in 
the area to first-time homebuyers.
     Required that for 18 months, 15 percent of funds 
made available to a jurisdiction be invested in housing 
developed, sponsored, or owned by community housing development 
organizations; authorized use of such funds for technical 
assistance and other aids to such organizations.
     Required HUD to provide technical, educational, 
and research support to participating jurisdictions and other 
appropriate organizations to develop capacity to identify and 
meet the needs for affordable housing.
     Required HUD to develop and make available to 
communities for their use detailed models of programs suitable 
for carrying out the purposes of the HOME program, including 
production of rental housing under various tenure arrangements, 
rehabilitation, sweat equity programs, and others.
     Required the Comptroller General to study and 
report within a year on ways to make mortgage credit available 
for the most efficient production of affordable housing under 
the HOME program, through government-assisted financing, 
assistance to FNMA and FHLMC, or other actions.
     Terminated the rental rehabilitation and HoDAG 
grants program under Section 17 of the United States Housing 
Act of 1937; the Section 312 rehabilitation program; the 
Nehemiah homeownership program established in the Housing and 
Community Development Act of 1987; the moderate rehabilitation 
program under the Existing- Housing section of the Section 8 
program, except for rehabilitation for single-room occupancy 
under the Stewart McKinney Homeless Assistance Act; and the 
Urban Homesteading program established in Section 810 of the 
Housing and Community Development Act of 1974.
     Authorized appropriation of $1 billion for FY 1991 
and $2.086 billion for FY 1992.

Homeownership
  National Homeownership Trust Act
     Established a National Homeownership Trust in HUD, 
governed by a board of directors composed of the Secretaries of 
HUD and the Treasury, chairpersons of the Board of the Federal 
Deposit Insurance Corporation, of FNMA, and of FHLMC, 
chairperson of the Federal Housing Finance Board, and an 
individual representing consumer interests appointed by the 
President with the advice and consent of the Senate.
     Empowered the Trust to make assistance payments to 
reduce mortgage interest to not more than 6 percent and to 
provide downpayments for eligible homebuyers.
     Defined those eligible as first-time homebuyers 
with incomes not over 95 percent of median in the area, 
adjusted for family size, or not over 115 percent of median in 
areas designated for high-cost area mortgage limits under FHA 
insurance programs, who have been denied market-rate mortgages 
because of insufficient income.
     Required the homebuyer to pay not less than 1 
percent of acquisition cost when receiving downpayment 
assistance.
     Required that assistance be repaid out of any net 
proceeds upon sale of the property, or, on a monthly basis, if 
family income rose to exceed eligibility amounts for a two- 
year period.
     Authorized appropriation of $250 million for FY 
1991 and $521.5 million for FY 1992; provided for termination 
of the Trust on September 30, 1993.
  FHA and Secondary Mortgage Market
     Authorized FHA commitments to insure mortgages for 
aggregate principal amounts of $76.791 billion in FY 1991 and 
$79.818 billion in FY 1992.
     Made permanent the increase to 185 percent the 
amount by which insurable mortgage amounts could exceed 
statutory limits in high-cost areas.
     Limited a mortgage to 98.75 percent of appraised 
value, for properties valued at $50,000 or less, or to 97.75 
percent for properties with higher values, plus any mortgage 
insurance premium included in the mortgage.
     Changed the amount of, and method of collecting, 
the insurance premium for FHA mortgages on one- to four-family 
dwellings, after October 1, 1994, to a single premium of 2.25 
percent of the principal mortgage amount, payable at the time 
of insurance, plus an annual premium of .5 or .55 percent, for 
11 or 30 years, depending on the size of the downpayment; 
established transitional payments for FYs 1991 and 1992, and 
for FYs 1993 and 1994.
     Prohibited FHA insurance of mortgages on secondary 
homes, except to avoid undue hardship to the mortgagor, and in 
no case on vacation homes.
     Required HUD to establish a system under which 
selected mortgagees could process FHA-insured loans on 
multifamily properties, with HUD retaining authority to approve 
rents, appraisals, expenses, and mortgage amounts, and also 
maintaining the current system under which FHA staff performed 
all processing.
     Prohibited lenders from practicing tiered pricing, 
that is, charging fees that varied by more than 2 percentage 
points on loans made in the same area.
     Required HUD to monitor mortgagees' performance in 
meeting the restriction on tiered pricing, in meeting the 
lending needs of the community, and in making loans that result 
in defaults; to establish procedures for individuals to request 
HUD to determine if a mortgagee is in compliance with these 
requirements; and to report on the results of cases referred to 
the Mortgagee Review Board for action.
     Required HUD to take actions to ensure the 
actuarial soundness of the Mutual Mortgage Insurance Fund, 
including attaining a capital ratio of at least 1.25 percentage 
points within 24 months of enactment of this Act and attempting 
to attain 2.0 percent within 10 years; limiting distribution of 
refunds of insurance premiums to mortgagors who have paid off 
their loans; adjusting insurance premiums, after notice to 
Congress, if fund operational goals were not being met; and 
having an independent study of the fund's actuarial soundness 
made annually.
     Increased to 25,000, from 2,500, the number of 
mortgages which could be insured under the home equity 
conversion mortgage insurance demonstration program.
     Required HUD to submit a report on the strategy 
for disposing of foreclosed properties in HUD's possession, 
with emphasis on working with other governmental bodies, 
nonprofit organizations, and others in fostering purchase by 
low- and moderate-income families and first-time homebuyers.
     Increased the maximum limits on amounts and term 
of insured property improvement loans.
Homeownership and Opportunity for People Everywhere (HOPE)
  HOPE for Public and Indian Housing Homeownership
     Established a program authorizing HUD to make both 
planning and implementation grants to promote homeownership of 
public and Indian housing by their tenants, in a new Title III 
of the United States Housing Act of 1937.
     Defined eligible applicants for grants as a public 
or Indian housing agency, a resident management corporation or 
council, a cooperative association, public or private nonprofit 
corporation, or a public body.
     Authorized HUD to make planning grants on a 
competitive basis of up to $200,000 to eligible applicants, to 
develop homeownership programs, including development of 
resident councils and management corporations, feasibility 
studies and preliminary architectural work, and other planning 
activities.
     Authorized HUD to make implementation grants on a 
competitive basis to carry out activities to promote a 
homeownership program, including administrative costs, 
acquisition costs (except for scattered site single-family 
public housing), rehabilitation, development of resident 
management councils and corporations, counseling and training 
of buyers, relocation costs, replacement housing, operating 
expenses up to the amount that would have been receivable under 
the public housing operating subsidy program, and economic 
development activities.
     Specified minimum requirements for a grant 
application and for selection criteria to be established by 
HUD, for both planning and implementation grants.
     Required a 25 percent match by the recipient of 
implementation grants.
     Established requirements for the homeownership 
program regulating eligibility for buyers, sales price and 
costs, financing, housing quality restrictions on resales, and 
others.
     Required that a homeownership program provide for 
acquisition by eligible families of at least one-half the units 
in a project, with sales prices of the units such that a family 
not have to spend more than 30 percent of adjusted income per 
month to complete a sale.
     Provided purchase could include fee simple 
ownership, including condominium ownership and cooperative 
ownership, including limited-equity ownership.
     Defined families eligible as purchasers as tenants 
of public or Indian housing, low- income families, families or 
individuals assisted under a program administered by HUD or 
FmHA, not including non-low income families assisted by 
mortgage insurance, with preference to current tenants and 
second preference to other qualified families who have 
completed participation in an economic self-sufficiency 
program.
     Exempted disposition of public housing under this 
program from the general limitations on disposition in Section 
18 of the United States Housing Act of 1937.
     Authorized use of Section 8 five-year certificates 
or vouchers for replacement of units lost from public housing 
through sale under this program.
     Authorized appropriation of $68 million for FY 
1991 and $380 million for FY 1992 for this program.
  HOPE for Homeownership of Multifamily Units
     Established a program similar to HOPE for Public 
Housing, with modifications making it appropriate for 
application to multifamily rental property owned or held by 
HUD, financed by a loan or mortgage held or insured by HUD, 
determined to have serious physical or financial problems under 
an insurance or loan program administered by HUD, or owned or 
held by the FmHA, the Resolution Trust Corporation, or a State 
or local government.
     Defined an eligible family as a family or 
individual who is a tenant of the eligible property or whose 
income does not exceed 80 percent of the area median, adjusted 
for family size.
     Required that a homeownership program provide for 
acquisition by eligible families of the individual units, 
without specifying the proportion of one-half included in the 
HOPE for public housing program.
     Required a 33 percent match of an implementation 
grant.
     Exempted eligible properties covered by an 
approved homeownership program from the requirements of the 
Low-Income Housing Preservation and Resident Homeownership Act 
of 1990 (Title VI, see below), or the requirements on sale of 
projects acquired by HUD.
     Authorized appropriation of $51 million for FY 
1991 and $280 million for FY 1992 for grants under this 
program.
  HOPE for Homeownership of Single-Family Homes
     Established a program similar to above HOPE 
programs, with appropriate changes for properties with one- to 
four-dwelling units owned by HUD, FmHA, VA, the Resolution 
Trust Corporation, a State or local government, or a public or 
Indian housing agency.
     Required a 33 percent match by the recipient of 
implementation grant.
     Required that all occupants participate in the 
homeownership program.
     Authorized $36 million for FY 1991 and $195 
million for FY 1992 for grants under this program.

Housing Assistance
     Removed the limitation on numbers of single 
persons who could receive housing assistance, but provided they 
could be assisted only in efficiency or one-bedroom units.
     Increased deductions for calculating adjusted 
income to determine required rent payments in assisted housing, 
subject to appropriations for the purpose.
     Prohibited, subject to approval in an 
appropriation act, more than a 10 percent increase in each 12-
month period in the rent paid by a family because of an 
increase in adjusted income resulting from employment of a 
previously unemployed family member.
  Family Self-Sufficiency Program
     Established a program to coordinate provision of 
housing assistance through public housing and Section 8 
certificates and vouchers with educational and training 
programs to promote economic independence.
     Provided that each PHA develop a plan, in 
consultation with tenants, local government and service 
agencies, for providing education, training and supportive 
services to recipients of housing assistance; provided that PHA 
participation in the program was voluntary in FYs 1991 and 
1992, and required thereafter, unless the PHA could demonstrate 
participation was not feasible.
     Provided that tenants, on a voluntary basis, sign 
a contract agreeing to participate in the program and to seek 
employment within a five-year period; rent increases resulting 
from employment during the period were to be placed in escrow, 
available to the tenant when the contract was completed and the 
tenant no longer received housing assistance, for purchase of a 
home or other appropriate use, but subject to forfeiture to the 
PHA if the contract were not satisfactorily completed or 
housing assistance continued.
     Required that not less than 10 percent of budget 
authority appropriated for public housing development and 
Section 8 certificates and vouchers be available on a 
competitive basis for local self-sufficiency programs in FYs 
1991 and 1992, and that all funds for incremental assistance in 
these programs be so used thereafter.
  Foster Care Children and Family Unification
     Authorized public housing agencies to make 
dwelling units available to families whose lack of adequate 
housing made imminent the placement of a child in foster care 
or prevented return of a child from foster care, or to a youth 
who is discharged from foster care and cannot return to his 
family or to an adoptive family; authorized an appropriation of 
$35 million for each of FYs 1991 and 1992 for additional 
Section 8 certificates to be used for the same purpose; 
required that housing needs of such families be included in a 
locality's housing assistance plan.
  Public and Indian Housing
     Increased the proportion of units available for 
occupancy in any year that are not subject to Federal 
preference selection requirements to 30 percent (from 10 
percent), but required the PHA to establish local preferences 
for these units, in accordance with a number of specified 
needs.
     Increased to 15 percent, from 5 percent, the 
proportion of newly occupied assisted units which could be 
rented to families with incomes between 50 and 80 percent of 
median.
     Authorized a PHA to permit preference in giving 
assistance for families with a child in danger of being placed 
in foster care or unable to be discharged from foster care 
because of inadequate housing.
     PHA Management. Required HUD to establish a means 
of assessing the management performance of PHAs through a set 
of indicators based on a number of specified factors, including 
procedures for designating troubled agencies and those troubled 
with respect to modernization activities; authorized HUD, in 
consultation with PHAs and public officials, to identify those 
performing in an exemplary way.
     Required HUD to attempt to enter into an agreement 
with each troubled PHA to set targets and strategies for 
improved performance, and incentives or sanctions for effective 
implementation of the agreement.
     Authorized HUD, if a PHA failed to meet 
requirements of the agreement or terms of the Annual 
Contributions Contract, to petition a court for a receiver to 
make other arrangements for managing the project.
     Required a PHA receiving an operating subsidy to 
maintain financial accounts separately for each project it 
operated, rather than on an agency-wide basis.
     Eviction and Termination Procedures. Authorized a 
PHA to establish an expedited grievance procedure, or, if the 
jurisdiction required a hearing providing due process for 
evictions, to waive its grievance procedure, for an eviction or 
lease termination because of criminal activities threatening 
the health, safety, or enjoyment of premises of other residents 
or employees, or any drug-related criminal activity on or near 
the premises.
     Required public housing leases to specify that, in 
any eviction procedure, a tenant should be informed of the 
right to examine relevant documents prior to a hearing.
     Required public housing leases to contain a 
provision that made a cause for eviction any criminal activity 
threatening the health, safety or right of peaceful enjoyment 
of other tenants, or any drug-related criminal activity on or 
near the premises engaged in by the tenant or any member of the 
tenant's family or guest or other person under the tenant's 
control.
     Services to Frail Elderly. Authorized use of 
public housing operating subsidies to pay for a coordinator of 
services to frail elderly or disabled residents and up to 15 
percent of the cost of services which will permit them to 
continue independent living.
     Modernization Funding. Amended the Comprehensive 
Improvement Assistance Program (CIAP) to provide allocation of 
funds by formula, based on relative need, rather than by 
competition.
     Authorized HUD, effective in FY 1992, subject to 
appropriation, to reserve up to $75 million of funds 
appropriated each fiscal year for CIAP to use for modernization 
needs resulting from disasters or emergencies.
     Provided that half the remaining funds be 
allocated for backlog needs and the other half for needs 
accrued since the last measurement of backlog needs; allocation 
was to be by formula based on statistically reliable data on 
need, for individual agencies with 500 or more units and the 
aggregate of agencies with fewer than 500 units, or by 
objectively measurable data as set forth if statistically 
reliable data were not available; changed the ``500 unit'' 
threshold to 250 units, effective October 1, 1992.
     Provided for flexibility in the use of funding by 
agencies with 500 or more units, and for allocation as special 
purpose modernization for smaller agencies; changed the 
threshold for different procedures to 250 units, effective 
October 1, 1992.
     Provided special provisions for agencies 
designated as ``troubled for modernization'' by HUD, which 
limited the amounts of formula funding each could receive, with 
changing amounts based on progress toward achieving nontroubled 
status.
     Established special provisions for operation of 
agencies with a vacancy rate exceeding twice the average rate 
or troubled agencies, under a vacancy reduction plan prepared 
with HUD assistance.
     Youth Sports Programs. Authorized HUD to make 
grants on a competitive basis out of funds appropriated for 
public and assisted housing drug elimination programs, to 
qualified State, local and non-profit agencies for youth sports 
programs in public housing projects with substantial drug 
problems, to provide both physical facilities and appropriate 
activities.
     Limited the grant with respect to any project to 
$125 thousand in each fiscal year, and required the grant 
recipient to provide matching funds from non-Federal sources 
equal to 50 percent of the grant amount.
     Mixed Income New Communities Strategy 
Demonstration Program. Required HUD to carry out a 
demonstration program in Chicago, and authorized it to apply 
the program in three other places selected on a competitive 
basis, to test the effectiveness of revitalizing urban 
communities through socioeconomic mixed housing.
     Required establishment of a coordinating committee 
with representatives of local government and others, and 
arrangements for provision of a variety of services and other 
incentives to participating tenants.
     Authorized a participating PHA to use its 
operating subsidy to subsidize very low- income public housing 
tenants in renting units in newly constructed or substantially 
rehabilitated privately owned structures, in which not more 
than a quarter of the units are occupied by such families.
     Authorized the PHA to rent a quarter of the units 
(or up to half in special circumstances) in a public housing 
project to families with incomes of 50 to 80 percent of median.
     Required each family subsidized in the privately 
owned units to enter into a seven- year contract, describing 
the supportive services, education, and other incentives to be 
provided and the obligations undertaken, including continuing 
education and employment by family members, leading to a 
transition to residency in unsubsidized housing.
     Programs for Upward Mobility. Established, in 
addition to Family Self Sufficiency and other programs noted 
above, a number of programs providing grants or giving 
permission to PHAs to use space in public housing projects for 
supportive activities to promote upward mobility of residents, 
including family investment centers, for training and 
educational services; Indian early childhood development 
centers; and one-stop perinatal services demonstrations.
     Studies. Required HUD to conduct studies, with 
reports due within a year, assessing alternative methods of 
providing sufficient funds to PHAs for operation and 
modernization, and revised payment systems, with particular 
emphasis on conversion of current payments to a steady stream 
of capitated payments.
     Required GAO to study, and report within a year, 
alternative methods of developing public housing in 
coordination with local housing strategies and the low-income 
housing tax credit.
  Low-Income Rental Assistance
     Permitted a PHA, for up to 10 percent of its 
incremental certificates, to allow a family at its own request 
to pay more than 30 percent of its income and the owner to 
receive more than the Fair Market Rent, provided the PHA 
determined the rental payment and rent were reasonable.
     Increased to 30 percent the proportion of project-
based new tenants exempt from Federal preference rules, 
continued the 10 percent exemption for tenant-based assistance, 
but required PHAs to establish written local preferences 
according to a number of criteria for those exempt from Federal 
preference; prohibited discrimination in giving preference for 
tenant-based assistance against residents of public housing; 
and prohibited preference for three years for an individual or 
family evicted from assisted housing because of drug-related 
criminal activity, unless the evicted tenant successfully 
completed a rehabilitation program.
     Required PHAs to review rents for units to be 
occupied by recipients of vouchers for reasonableness, and 
permitted a PHA to disapprove the lease if it found the rent 
was not reasonable.
     Required HUD to report annually on the number and 
types of families receiving certificate and voucher assistance 
who pay more than 30 percent of adjusted income for rent, the 
market circumstances associated with such high payments, and 
HUD recommendations for appropriate action.
     Authorized HUD to provide voucher assistance for 
rental of manufactured homes or of the land on which a home is 
placed.
  Homeownership Counseling
     Amended the counseling program established in the 
Housing and Community Development Act of 1987 (P.L. 100-242, 
February 5, 1988) and added a new section establishing a 
prepurchase and foreclosure counseling demonstration under 
which grants are to be made to qualified nonprofit 
organizations to provide counseling in counseling target areas 
to specified types of first-time homebuyers prior to purchase 
and to delinquent homeowners with FHA-insured mortgages to 
prevent foreclosures.
     Required HUD to establish three areas in at least 
two metropolitan areas meeting criteria of age of homes, 
delinquency rates, and transaction rates, and similar control 
areas to permit evaluation by GAO of the effectiveness of the 
counseling under the program. Authorized appropriations of 
$350,000 for FY 1991 and $365,000 in FY 1992 to carry out the 
demonstration.
  Public and Assisted Housing Drug Elimination Act of 1990
     Amended the Public Housing Drug Elimination Act of 
1988 (Chapter 2 of Subtitle C, Title V, P. L. 100-690) to 
provide grants to assisted housing projects as well as public 
housing, with appropriate revision of criteria for selection, 
and made a number of clarifying and procedural amendments.

Title VI--Low-Income Housing Preservation and Resident Homeownership 
        Act of 1990 (LIHPRHA)
     Established a permanent program for preservation 
of assisted housing in danger of being lost from the low-rent 
stock through prepayment of mortgages insured under Section 
221(d)(3) or Section 236, or of State or local uninsured 
Section 236 projects, to replace the temporary provisions of 
the Emergency Low Income Housing Preservation Act of 1987 
(Title II, Housing and Community Development Act of 1987, P.L. 
100-242, February 5, 1988).
     Permitted prepayment of mortgages under very 
limited circumstances.
     Protected tenants and owners through a system 
which provided owners who had been denied prepayment rights or 
who did not wish to prepay a choice between continuing 
operation with a number of incentives to provide a fair return 
on their equity or of selling to other entities who would 
continue such operation, with the same incentives.
     Established extensive procedures of notification, 
appraisals, provision of incentives, priority purchasers, and 
tenant protections under the several owner options.
     Established analogous additional revenue sources 
for assistance to owners of Section 236 projects in need of 
physical repairs to continue provision of low-rent housing in 
suitable condition.

Rural Housing
     Authorized FmHA to supplement a Section 502 loan 
made to finance housing in a remote rural area with a grant up 
to the amount by which the land and construction costs exceed 
the appraised value, and prohibited refusal to make or insure a 
loan solely on the basis of location in an excessively remote 
or rural area.
     Established a two-year deferred mortgage 
demonstration program permitting FmHA, subject to approval in 
appropriation acts, to use up to 10 percent of Section 502 loan 
funds to defer up to 25 percent of the mortgage payment due at 
a 1 percent interest rate for families who are eligible for 1 
percent mortgages under the Section 502 homeowner loan program, 
but who cannot make the required payments with 20 percent of 
their income; made deferred payments subject to recapture.
     Required FmHA, in addition to providing loans for 
purchase of rural housing, to guarantee up to 90 percent of a 
mortgage loan made by private lenders to home purchasers with 
incomes below area median, of eligible houses located in places 
more than 25 miles from an urban or densely populated area 
which are not adequately served by the mortgage market; gave 
priority to first-time homebuyers; established loan term of up 
to 30 years, interest rate not higher than that of VA or 
comparable unguaranteed loans in area; authorized FmHA to 
require first-time buyer to complete homeownership counseling 
course.
     Required FmHA to follow State foreclosure 
procedures if these were more favorable to the borrower than 
those of FmHA.
     Required FmHA to offer to transfer its interest in 
a property in default located on Indian tribal or trust land to 
a tribal member, the tribe, or the Indian housing authority, 
before liquidation; and to sell only to one of these entities 
if the property is subsequently sold. Required FmHA to set 
aside not less than 7 percent from funds for Section 515 rental 
housing in FY 1991, and not less than 9 percent in FY 1992, for 
use by nonprofit entities. Housing in Underserved Areas. 
Required targeting of funds to 100 designated underserved high-
poverty areas in each of FYs 1991 and 1992, to improve the 
quality of affordable housing.
     Provided that 3.5 percent of lending authority 
under homeownership and rental programs in FY 1991 and 5 
percent in FY 1992 (with appropriate amounts of Section 521 
rental assistance) be reserved for loans and grants to prepare 
loans under these programs in the targeted areas.
     Defined target areas as those which over a five-
year period received substantially lower per-capita amount of 
assistance than other counties and communities in the State, 
with 20 percent or more of its population at or below poverty 
level, and 10 percent or more of its population residing in 
substandard housing.
     Defined grant applicants as a nonprofit 
organization or corporation, community housing development 
organization, a State or local government or its agency.
     Required preference in selecting grantees to be 
given to projects located in area with 28 percent of its 
population below the poverty level and 13 percent of its 
population living in substandard housing, with priority for up 
to 5 percent of assistance to be used in colonias, defined as 
communities lacking potable water supplies and adequate sewage 
systems located in Arizona, California, New Mexico or Texas 
within 150 miles of the Mexican border.
     Directed FmHA to establish an outreach program 
publicizing the availability of grants and loans and to promote 
applications for them.
     Housing for Rural Homeless and Migrant 
Farmworkers. Established a new program which authorized FmHA to 
lend, on a competitive basis, up to $400,000 ($800,000 in high-
cost areas) for acquisition, rehabilitation, or construction of 
affordable rental housing for migrant farmworkers or homeless; 
grants of up to $400,000 for moderate rehabilitation of an 
existing structure; and payments of up to 75 percent of 
operating costs of such housing. Defined an applicant for such 
assistance as a State, political subdivision of a State, Indian 
tribe or private nonprofit organization.
     Provided that loans under the program be entirely 
repaid if the housing was used for the program purposes for 
less than 10 years, with repayment reduced by 10 percent for 
each year it was so used after 10 years.
     Provided that the applicant for assistance provide 
reasonable assurance that the housing would be occupied by 
homeless individuals and families only on a temporary basis 
during the off season, and otherwise would be available to 
migrant farmworkers.
     Required migrant farmworkers or homeless persons 
residing in the assisted housing to pay the same rent as would 
be required under the HUD housing assistance programs.
     Required FmHA to study and report on the extent 
and characteristics of homelessness in rural areas, and 
recommend actions to alleviate the problem.

Housing for Persons with Special Needs
  Supportive Housing for the Elderly
     Section 202 Housing. Restructured Section 202 of 
the Housing Act of 1959 (P.L. 86-372, September 23, 1959), with 
respect to projects developed after September 30, 1991, to add 
provision of supportive services to the purposes of the 
program, and to establish a new financing method for providing 
assistance for housing for the elderly.
     Changed the financing method for providing housing 
from a direct loan to a no- interest capital advance to a 
nonprofit organization, to be repaid only if the housing did 
not continue to be used for low-income elderly persons; 
included a number of procedural provisions relating to 
selection of projects to be financed, cost control, and other 
relevant matters.
     Replaced Section 8 assistance to residents with 
provision of operating assistance payments to the project, but 
continued to require the same rent payments from tenants as 
under Section 8.
     Required HUD to ensure that the assisted housing 
provide nutritional, housekeeping, and other services tailored 
to the needs of elderly residents, including frail elderly; 
included the managerial costs for obtaining and coordinating 
provision of such services in the operating assistance 
payments.
     Authorized appropriation for FY 1992 of $659 
million for capital grants and $363 million for operating 
subsidies; required that 20 percent of funds be allocated for 
nonmetropolitan areas.
     Authorized use of properties purchased from the 
RTC for Section 202 housing for the elderly, and authorized RTC 
to sell properties for this purpose.
     Amended the National Housing Act to include elder 
cottage housing opportunity (ECHO) units under the term 
``manufactured home'' for purposes of FHA insurance, and 
required HUD to carry out a demonstration program to determine 
the feasibility of using such cottages, when installed adjacent 
to existing single-family homes, in the Section 202 program; 
required that such cottages be small, free-standing, barrier- 
free, energy efficient, and removable.
     Authorized including in operating assistance 15 
percent of costs of providing services in projects where 
tenants were principally frail elderly, except where the 
project was assisted under the congregate housing services 
program.
     Included transitional provisions for continuing 
assistance to projects developed under Section 202 prior to 
these amendments.
     Congregate Housing Services. Revised and expanded 
the congregate housing program, to provide assistance for frail 
elderly persons, persons with disabilities of any age, or 
temporarily disabled, residing in public housing or Federally-
assisted privately owned housing. Provided for five-year, 
renewable contracts, made on a competitive basis, between HUD 
or FmHA and eligible contractors to fund retrofitting of 
dwelling units to meet special physical needs and provide 
congregate space, and to provide congregate services which meet 
nutritional, personal service, housekeeping, transportation and 
other needs, in order to prevent unnecessary 
institutionalization.
     Defined eligible contractors as States, Indian 
tribes, local government, and nonprofit organizations.
     Limited resident payments for meals and other 
services to amounts necessary to cover 10 percent of costs, 
except that payments for meals could be no more than 10 to 20 
percent of income, depending upon the number of meals; required 
provision for waiver of payment for residents with insufficient 
income.
     Required that the grant cover 40 percent of the 
cost of providing services, 50 percent to be paid by the 
grantee from other funds, and 10 percent by the resident, 
except that any shortfall from the 10 percent resulting from 
the limitation on resident payments was to be paid equally from 
Federal and grantee funds.
     Authorized appropriations of $25 million for FY 
1991 and $26.1 million for FY 1992.
     HOPE for Elderly Independence. Established a five-
year demonstration program to determine the effectiveness of 
combining Section 8 assistance and supportive services to frail 
elderly persons, to enable them to continue to live 
independently.
     Authorized HUD to provide PHAs, selected 
competitively, with up to 1,500 incremental Section 8 vouchers 
and certificates and grants covering 40 percent of the cost of 
supplying necessary supportive services, as proposed in the 
application submitted during the competition.
     Provided that payments for costs of services be 
divided among the Federal grant, the grantee, and the recipient 
of aid, as in the Congregate Housing Services program, but with 
the recipient's payment limited to 20 percent of income, 
subject to waiver if his/her income was insufficient.
     Required that the application be prepared in 
consultation with the area agency on aging under Title III of 
the Older Americans Act of 1965, and that in reviewing the 
applications, HUD consult with the Department of Health and 
Human Services with respect to proposed supportive services.
     Required that the PHA offer to continue the 
recipient's Section 8 assistance after the conclusion of the 
demonstration, and that the application include a plan for 
continuing supportive services.
     Required HUD to conduct a demonstration program in 
one Federal region to determine the feasibility of promoting 
independent living by frail elderly persons by providing 
Section 8 certificates to such occupants of at least 75 percent 
of units of a building with more than 100 units specifically 
designed for such occupancy, so as to achieve economies of 
scale in provision of services.
     Provided that HUD contract with a PHA, chosen 
competitively from local government applicants from places with 
under 50,000 population, to provide Section 8 project-based 
five-year certificates (subject to renewal for up to 20 years) 
and grants for supportive services for use in a single project.
     Authorized HUD, subject to sufficient 
appropriation in the housing assistance account, to use up to 
$34 million in FY 1991 and $35.5 million in FY 1992, for 
Section 8 assistance in this program, and authorized 
appropriation of $10 million for FY 1991 and $10.4 million for 
FY 1992, for supportive services.
  Supportive Housing for Persons with Disabilities
     Established a program (Section 811) for providing 
housing assistance to persons with disabilities analogous to 
the amended Section 202 program providing supportive housing 
for the elderly, adjusted for the different needs of persons 
with disabilities.
     Defined ``person with disabilities'' as a 
household consisting of one or more adult persons with a 
physical, mental, or emotional impairment expected to be of 
long duration, which impedes the ability to live independently, 
and whose ability to so live could be improved by suitable 
housing.
     Provided for capital advances and rental 
assistance, as under Section 202, to provide assistance to 
private nonprofit organizations to supply new, rehabilitated, 
or existing housing for supportive housing to persons with 
disabilities, using group homes, independent living facilities, 
multifamily rental units, condominium or cooperative housing.
     Required provision of supportive services 
addressing physical and mental health needs or other special 
needs as necessary.
     Authorized appropriation of $271 million for 
capital advances for FY 1992, and $246 million for rental 
assistance.

Supportive Housing for the Homeless
     Block Grant for Homeless Assistance. Rewrote Title 
IV of the Stewart B. McKinney Homeless Assistance Act (P.L. 
100-77, July 22, 1987) to consolidate the Emergency Shelter 
Grants program, the Supportive Housing Demonstration Program, 
and Permanent Housing for Homeless Handicapped Persons program 
into one housing assistance program, funded with a formula 
block grant; provided, however, that this change take effect 
only after HUD studied the feasibility of such a formula grant, 
and reported to Congress on alternative possible formulas. 
(Report was not presented, and this program revision and use of 
a formula for grants were repealed by the Housing and Community 
Development Act of 1992, P.L.102-550, October 28, 1992.) 
Required HUD, in consultation with other relevant governmental 
agencies, to prepare a strategy for eliminating by July 1, 
1992, the use of unfit transient facilities in housing homeless 
families with children.
     Shelter Plus Care Program. Added a new subtitle to 
the McKinney Homeless Assistance Act which authorized HUD to 
provide rental assistance in connection with supportive 
services to homeless persons with disabilities, primarily those 
mentally ill, those with chronic alcohol or drug problems, or 
with acquired immunodeficiency syndrome (AIDS), to be used in 
units which rent for no more than the Section 8 fair market 
rent, and receive assistance under the Section 8 moderate 
rehabilitation single- room occupancy program, or under Section 
202 or Section 811 housing for the elderly or handicapped.
     Provided five-to-ten year contracts on a 
competitive basis to recipients, who included States, local 
governments, Indian tribes, public housing agencies, and 
nonprofit organizations.
     Required recipients to provide equal amounts in 
matching funds from other sources for supportive services to 
persons receiving rental assistance.
     Authorized appropriation of $80.4 million for FY 
1991 and $167.2 million for FY 1992, for use in units under the 
Section 8 existing fair market rent; $24.8 million for FY 1991 
and $54.2 million for FY 1992 for Section 8 moderate 
rehabilitation units; and $18.0 million for FY 1991 and $37.2 
million for FY 1992 for Sections 202 and 811 units.
     Amendments to Current Programs. Amended the 
requirement that a jurisdiction have an acceptable 
Comprehensive Homeless Assistance Plan (CHAP) to be eligible 
for assistance under the McKinney Homeless Assistance Act to 
require, effective October 1, 1991, that it certify it is 
following an approved Comprehensive Housing Affordability 
Strategy, or a CHAP which was approved during the 180 days 
after enactment of this Act.
     Revised the contents and procedures of the CHAP 
required to receive a grant under the emergency shelter grants 
program.
     Amended financing methods, permissible activities, 
and procedures in the Supportive Housing Demonstration Program, 
and Supplemental Assistance for Facilities to Assist the 
Homeless Program.
     Made Indian tribes eligible for grants and loans 
under the various McKinney programs.
  AIDS Housing Opportunity Act
     Established a program for providing grants to 
States and localities, to support activities undertaken by 
nonprofit organizations which meet housing needs of persons 
with AIDS.
     Required grantees to have an approved CHAS.
     Provided that 90 percent of appropriated funds be 
allocated among grantees on the basis of incidence of AIDS, 
with 75 percent going to local governments in metropolitan 
statistical areas with populations over 500,000 and more than 
1,500 cases of AIDS, and States with more than 1,500 cases of 
AIDS outside of metropolitan areas and 25 percent to localities 
in such areas with a higher than average per-capita incidence 
of AIDS; the remaining 10 percent of funds was to go to States 
and localities not qualifying under these requirements, or 
qualifying but without a CHAS, or to fund special projects of 
national significance. Authorized use of grants to fund 
provision of housing information, to facilitate development of 
short-term shelters, to provide short-term rental assistance or 
mortgage payments to prevent homelessness, to provide short-
term Section 8 rental assistance, to facilitate moderate 
rehabilitation of SROs, and to facilitate development of 
community residences for persons with AIDS; required provision 
of services of various types in the assisted facilities.
     Established provisions for rental payments by 
recipients of assistance and fees for services, but no person 
was to be denied services because of inability to pay.
     Authorized appropriation of $75 million for FY 
1991 and $156.5 million for FY 1992.

Community Development and Miscellaneous Programs
  Community and Neighborhood Development and Preservation
     Required that local governments have an approved 
CHAS to receive CDBG funding.
     Increased the targeting of CDBG funds by raising 
from 60 percent to 70 percent the proportion of funds that 
entitlement communities must spend on activities benefiting 
low- and moderate-income persons.
     Specified that when using CDBG funds to provide 
assistance to for-profit entities carrying out an economic 
development project, the project should meet a number of goals 
relating to low- and moderate-income assistance or an urgent 
need.
     Added to permissible uses the promotion of 
homeownership by low- and moderate- income families, through 
subsidy of interest rates, help with down-payments and other 
means, to be permitted until such assistance is available 
through the HOME program.
     Required the States of Arizona, California, New 
Mexico, and Texas to use 10 percent of their CDBG funding for 
projects meeting the water, sewage, and housing needs of 
residents of colonias.
     Revised provisions applicable to the Section 108 
loan guarantee program to include eligibility of nonentitlement 
communities, to change the allocations, to increase the loan 
repayment period to 20 years, and in other ways to facilitate 
its use.
     Increased the funding and expanded the functions 
of the Neighborhood Reinvestment Corporation.
     Required HUD to report by July 1, 1991, on the 
adequacy, effectiveness, and equity of the formula used for 
allocation of CDBG funds, with particular concern for the use 
of age and quality of housing as factors in the determination.
     Provided for grandfathering of places which would 
lose entitlement to funding because of the 1990 Census, added a 
number of civil rights clauses, and in other ways modified 
several terms of the CDBG program.
  Disaster Relief
     Authorized an increase in funding or use of 
recaptured funds for Section 8 certificates and vouchers, 
moderate rehabilitation, Community Development Block Grants, 
and Farmers Home Administration programs in places declared by 
the President to be affected by a major disaster.
  Regulatory Programs
     Servicing of Mortgages. Amended the Real Estate 
Settlement Procedures Act of 1974 (P.L. 93-533, December 22, 
1974) to require that mortgagees notify borrowers at the time 
of application whether the lender expects to service the loan 
itself, and if so, whether servicing may be transferred later, 
and the past record on proportion of loans transferred.
     Required HUD to develop a model form for such 
disclosure.
     Required both the transferring and receiving 
servicers to notify borrowers in writing when a transfer is 
made, with information on how to obtain information by 
telephone regarding the transfer, and prohibited imposition of 
late fees during the 60-day period after transfer if payment is 
made to the original servicers.
     Required servicers to respond to written requests 
for information on the servicing of a loan, with a correction 
of error or explanation, subject to fine for failure to do so.
     Required servicers on settlement and annually 
thereafter to provide, without charge, a statement itemizing 
the required monthly payments into and estimated payments from 
any escrow account, and to notify the borrower annually of any 
shortage of funds in the account.
     Manufactured Housing. Established the National 
Commission on Manufactured Housing, consisting of the HUD 
Secretary and 16 members to be appointed by the chairman and 
ranking member of the Senate and House Subcommittees on 
Housing, to study current construction and safety requirements 
for manufactured housing and report on legislative and 
regulatory revisions needed to modernize these requirements; 
specified a number of aspects to be considered in determining 
such revisions.
     Authorized availability of $500,000 from any 
amounts appropriated for HUD research.
     Energy. Required HUD to report within a year on 
activities undertaken by HUD to increase energy efficiency in 
housing, including establishment and description of a standard 
measure by which to compare changes in residential energy 
efficiency.
     Required HUD to establish a five-year plan for 
activities to be undertaken and policies to be adopted to 
improve residential energy efficiency, with an original plan to 
be adopted within a year, to be updated at least every two 
years.
     Required HUD to form a task force composed of 
representatives of the HUD and FmHA mortgage programs, and 
FHLMC and FNMA to recommend ways of using mortgage financing to 
promote energy efficiency, and, together with the Department of 
Energy, to promulgate a uniform plan for such use.
     Authorized use of $2 million of funds appropriated 
for the National Homeownership Trust Demonstration to carry out 
a program demonstrating ways to improve energy efficiency in 
existing housing.
     Seismic Safety Property Standards. Required HUD to 
develop seismic safety property standards for properties 
assisted by HUD programs, in order to reduce the risk of loss 
of life and of property damage, and to report at least 
biennially on the subject.
     Additional Research and Development Programs
     Required HUD, using up to $500,000 of funds 
appropriated for research, to carry out a demonstration program 
testing affordable housing technologies.
     Required HUD to report within the next year a 
description of all research efforts being conducted or which 
will conclude during this period.
     Established, within the National Institute of 
Building Sciences, the Advanced Building Technology Council, to 
identify and evaluate new building technologies and to promote 
their use, in cooperation with Federal agencies.
     Required HUD to conduct a study on the ways in 
which State and local pension funds could be used to finance 
construction of low- and moderate-income housing.

     Federal Deposit Insurance Corporation Improvement Act of 1991

       (FDICIA) (Title II, Public Law 102-242, December 19, 1991)

Subtitle D--FDIC Property Disposition
  FDIC Affordable Housing Program
     Required the FDIC to market certain housing assets 
to which it had title to nonprofit organizations, public 
agencies, and qualifying households so as to maintain and 
increase ownership and rental opportunities for very-low, low- 
and moderate-income families. Such ``affordable housing'' 
property disposition was to continue for a three- year period 
beginning the first fiscal year for which funds were 
appropriated to cover losses on sales due to necessary 
discounts below realizable disposition value, not to exceed $30 
million in any fiscal year.
  Single-Family Housing
     Required that single-family housing (including 
manufactured housing), appraised at or below the limits for 
Section 203(b)(2) of the National Housing Act ($67,500) with 
discretionary increases for high-cost areas, be available for 
at least six months for sale only to households with incomes 
not exceeding 115 percent of area median income, adjusted for 
family size, or to nonprofits or public agencies which agreed 
to make the property available to and affordable by low-income 
families (incomes not exceeding 80 percent of area median, 
adjusted for family size) for the remaining useful life or to 
resell to such families who agree to occupy it as a principal 
residence for at least 12 months.
     Required FDIC to recapture 75 percent of profits 
from any sale during the first year after acquisition except 
for good cause (including necessary relocation of seller).
     Waived affordable housing requirement to avoid 
displacement of existing occupant.
  Multifamily Housing
     Required that multifamily housing with appraised 
values not exceeding the amount for elevator-type structures 
under Section 221(d)(3)(ii) of the National Housing Act, with 
discretionary increases for high-cost areas, be available for 
at least 90 days only to public agencies, nonprofit 
organizations, and for-profit entities with commitments to 
satisfy occupancy requirements that at least 35 percent of 
units be available to and maintained affordable by low-income 
families, including at least 20 percent of all units be for 
very low-income families (below 50 percent of area median 
income, adjusted for family size) for the remaining useful life 
of the property.
     Limited rents for very-low income families to 30 
percent of the adjusted income of a family whose income equaled 
50 percent of the area median, and for low-income families to 
30 percent of the adjusted income of a family with income 
equaling 65 percent of median for the area.
     Disallowed evictions for purpose of meeting low-
income occupancy requirements and allowed for compliance by 
reserving all new vacancies for lower-income households until 
requirements were met.
     Allowed assistance for sales through FDIC 
discounts, subsidies from HUD or FmHA, credit enhancements from 
FHA, GNMA, FNMA, FHLMC or other secondary market entities, or 
FDIC-provided enhancements in the case of tax-exempt bonds.

             Housing and Community Development Act of 1992

                 (Public Law 102-550, October 28, 1992)

Housing Assistance
  General Provisions
     Added to the expenditures to be deducted from 
gross income in calculating adjusted income for rent-paying 
purposes in assisted housing, subject to approval in an 
appropriation act.
     Made applicable to Indian housing the definitional 
changes relating to family size and income adopted in the 
National Affordable Housing Act (P.L. 101-625, November 28, 
1990).
     Made a number of changes in the self-sufficiency 
program established in the National Affordable Housing Act to 
make it more flexible and more attractive to tenants, including 
specifying situations which permit a PHA not to participate in 
the program, requiring specific interim as well as final goals, 
requiring a grievance procedure for families to be penalized 
for failure to meet goals, and permitting pro rata withdrawals 
from the escrow account when interim goals are met.
  Public and Indian Housing
     Removed the five-year limit on a PHA's charging a 
tenant ceiling rents instead of 30 percent of adjusted income.
     Exempted PHAs from the prohibition against not 
following a strict order in selecting families for residence, 
for those selected under the local preference system, and 
increased the proportion allowed to be chosen under local 
preference to 50 percent (from 30 percent).
     Major Reconstruction of Obsolete Projects. 
Established this program in housing legislation (previously 
conducted under appropriation act language) by defining the 
term ``obsolete public housing project or building,'' based on 
physical standards and vacancy rates; and by authorizing HUD to 
reserve up to 20 percent of funds appropriated for public 
housing development for competitive awards for major 
reconstruction.
     Established criteria for allocation of awards in 
the competition and procedures to be followed in carrying out 
the reconstruction.
     Management of Troubled Agencies. Amended the 
procedure for dealing with agencies designated as ``troubled,'' 
by requiring HUD to provide for a review of management of a 
designated agency by an outside team of management experts to 
make recommendations for improvement; by increasing 
participation of tenants at various stages of the process; and 
adding to ways in which the PHA could be replaced as manager if 
it was in default in its management agreement. Also made 
resident management corporations subject to the same provisions 
as public housing agencies. Made a number of minor changes in 
the vacancy reduction assistance program.
     Demolition and Disposition. Amended provisions 
regulating the disposition or demolition of public housing to 
permit, when 200 or more units were to be affected, use of 
five-year (rather than 15-year) certificates or other 
assistance as replacement housing; for such size projects, to 
require that at least half the replacement units be public 
housing or with other project-based assistance, and no more 
than half tenant- based Section 8 certificates; and to permit 
demolition without replacement if in any five-year period no 
more than the lesser of five units or 5 percent of the PHA's 
stock was demolished, provided the space was used for tenants' 
needs.
     Revitalization of Severely Distressed Public 
Housing. Established a new program providing a planning grant 
on a competitive basis of up to $200,000 per project, and a 
competitive implementation grant to develop a plan for 
revitalization and to carry out the plan for necessary 
architectural, structural, and management improvements and 
economic development activities to promote self-sufficiency of 
residents.
     Defined ``severely distressed public housing'' as 
a project requiring major reconstruction or demolition, 
occupied predominantly by families with severe social 
malfunctions, located in a distressed neighborhood, with a 
vacancy rate of 50 percent or more.
     Permitted applicants for a grant to be a PHA not 
designated as troubled, or a troubled PHA in cooperation with a 
nonprofit agency, other PHA, or a resident management 
corporation.
     Established criteria for selection of grantees, 
defined eligible activities, and set forth other procedures and 
requirements.
     Permitted HUD to waive public housing rules 
applying to rents, income eligibility, and other management 
requirements, to permit long-term viability of revitalized 
projects, and permitted a PHA managing a revitalized project to 
set up a local system of preferences for selecting tenants.
     Established an Office of Severely Distressed 
Public Housing within HUD to implement the program.
     Choice in Public Housing Management. Authorized 
HUD to approve not more than 25 applications from resident 
councils to transfer management of distressed housing projects, 
or buildings within projects, owned by a troubled PHA, from PHA 
management to alternative managers.
     Established requirements and procedures for 
effecting such a transfer, and other aspects of the program.
     Established systems for making grants for 
technical assistance to residents and a resident council and 
for making grants for rehabilitation and capital improvement 
funding.
     Provided minimum requirements for a contract 
between the new manager and HUD.
     Authorized reservation of up to $50 million for 
each of FYs 1993 and 1994 from modernization funding for use in 
this program.
  Section 8 Assistance
     Required HUD to issue regulations within 
designated times for a number of program amendments adopted in 
the National Affordable Housing Act which HUD had not put into 
effect.
     Moving to Opportunity for Fair Housing. 
Established a demonstration program, to be carried out in Los 
Angeles and five cities named in the 1992 HUD appropriation 
act, to test the feasibility and relative cost of using Section 
8 tenant-based assistance to assist families with children 
living in public housing to move out of areas with a high 
proportion of households living in poverty to areas with a 
lower concentration of such households.
     Authorized HUD to contract with nonprofit 
organizations to provide counseling and services in connection 
with the program.
     Required HUD to issue interim reports and a final 
report by September 30, 2004, on the housing, educational, and 
employment achievements of the assisted families.
     Authorized additional funding for Section 8 
programs of $50 million for FY 1993 and $52.1 million for FY 
1994 to carry out this program.
     Homeownership. Authorized use of tenant-based 
Section 8 assistance by a first-time homebuyer for payment of 
home purchase expenses, provided he/she met a number of other 
qualifications relating to income and employment and satisfied 
down- payment requirements.
  Housing Counseling
     Made a number of amendments extending and 
expanding the provisions of the counseling program established 
in the Housing and Urban Development Act of 1968 (P.L. 90-448, 
August 1, 1968).
  HOPE for Youth: Youthbuild
     Established a new program, Youthbuild, with the 
dual purposes of providing additional housing for homeless and 
low-income families, and education and preapprenticeship and 
apprenticeship training for very low-income youth who are high-
school dropouts or otherwise in need of additional education.
     Authorized HUD to make planning and implementation 
grants on a competitive basis to public or private nonprofit 
community, housing development, youth service, or job-training 
agencies to carry out approved programs.
     Provided minimum requirements and selection 
criteria for application for each type of grant.
     Included descriptions of eligible activities to be 
funded, including planning and implementing necessary planning 
and activities for providing youth with education and job 
training in connection with rehabilitating or constructing 
housing and related facilities.
     Established requirements relating to the youth 
permitted to participate, and the characteristics of rental and 
homeownership units and of tenants and home purchasers 
receiving assistance under the program.
     Set aside for Youthbuild, from funds appropriated 
for HOPE programs for FY 1993, the greater of $40 million or 5 
percent of HOPE funding.

Homeownership Programs
     HOPE Programs. Reauthorized and made minor 
amendments to the HOPE programs.
     National Homeowner Trust Demonstration. Amended 
the provisions of the National Affordable Housing Act which 
established this demonstration to provide assistance for 
purchase of homes financed with proceeds from mortgage revenue 
bonds, and for manufactured homes; to provide second mortgage 
loans with deferred payment of principal and interest; and to 
provide grants to public organizations to set up revolving loan 
funds to provide homeownership assistance to eligible first-
time homebuyers.
     Loan Guarantees for Indian Housing. Authorized HUD 
to guarantee loans made by private lenders to Indian families 
or Indian housing authorities to construct, acquire, or 
rehabilitate one- to four-dwelling structures standing on trust 
land or land located in an Indian or Alaska Native area.
     Established the terms for the loan, standards for 
the housing, and procedures for guaranteeing the loan and for 
payments under the guarantee analogous to those in FHA 
programs.
     Established in the Treasury the Indian Housing 
Loan Guarantee Fund to provide the loan guarantees, with a 
limitation on outstanding aggregate commitment level subject to 
appropriations. Authorized appropriation of sums as necessary 
for FY 1993 and $50 million for FY 1994 to the Guarantee Fund 
for its operation.
     Enterprise Zone Homeownership Opportunity Grants. 
Authorized HUD to carry out a program under which nonprofit 
organizations received grants on a competitive basis to provide 
second mortgages to first-time homebuyers purchasing newly 
constructed or rehabilitated homes in an enterprise zone.
     Provided that such loans be for not more than 
$15,000, bear no interest, and be repayable to HUD upon 
disposition of the property. Limited loan recipients to 
families with incomes not greater than the median income in the 
metropolitan area for four persons, adjusted for family size.
     Authorized appropriation of $30 million for each 
of FYs 1993 and 1994.

Home Investment Partnerships (HOME Program)
     Eliminated the special conditions on use of HOME 
funds for new construction, though maintaining the requirement 
that jurisdictions in general give preference to 
rehabilitation.
     Amended the matching requirements to 25 percent 
for all uses except new construction, which required a 30 
percent match, and permitted use of funds obtained through 
issuance of bonds for part of the match. Required partial or 
total waiver of the matching requirement for jurisdictions in 
fiscal distress or severe fiscal distress, respectively, as 
defined in the Act.
     Expanded the permissible uses of the HOME funds to 
include administrative costs, security deposits for low-income 
rental housing, various types of housing for the homeless, and 
others.
     Made specific the inclusion of community land 
trusts among organizations authorized to receive educational 
and technical assistance.
     Added helping women living in low- and moderate-
income neighborhoods rehabilitate and construct housing in 
those neighborhoods to the purposes of HUD's provision of 
educational and technical support, and added assisting such 
women in obtaining skills in the construction industry to 
eligible uses of such technical support.
     Required certification in a jurisdiction's housing 
strategy (CHAS) that it would follow the same antidisplacement 
and relocation procedures in the HOME program as in its CDBG 
program.
     Required the jurisdiction's CHAS to explain how 
its efforts to produce and preserve affordable housing would 
assist in its efforts to reduce the numbers of households with 
incomes below the poverty level.
Preservation of Low-Income Housing
     Amended the Emergency Low Income Housing 
Preservation Act of 1987 (as amended by the Low-Income Housing 
Preservation and Resident Homeownership Act of 1990, P.L. 101-
625, November 28, 1990) to clarify an owner's rights to an 
equity return, to include residual receipts in the appraised 
value which forms the basis for the sale price, to eliminate 
the so-called ``windfall profits'' test, and in other ways to 
strengthen owners' rights.
     Similarly amended the Act to strengthen the right 
of tenants to obtain information about the owner's intentions 
and access to relevant data. Authorized HUD to provide 
resident-capacity grants to resident organizations and 
community-based nonprofit housing developers for outreach and 
technical assistance in training residents of projects in which 
the owner has filed a notice of intent; predevelopment grants, 
for costs of organizing a purchasing entity and for pre-
purchase activities; and outreach educational projects to the 
same organizations and State and local governments to identify 
and organize residents of eligible projects.
     Authorized appropriation of $25 million for each 
of FYs 1993 and 1994 for the above-named grants.

Multifamily Housing Planning and Investment Strategies
     Required owners of multifamily housing assisted 
under Sections 202, 236, 221(d)(3), or the HOME program which 
is not eligible for assistance under the Low-Income Housing 
Preservation and Resident Homeownership Act of 1990 or the 
Emergency Low Income Housing Preservation Act of 1987 to submit 
a comprehensive needs assessment to HUD.
     Required HUD to require owners of one-third of the 
covered properties to submit the assessment in each of FYs 
1993, 1994, and 1995, so that the inventory would be completed 
by the end of FY 1995.
     Required that the assessment include a description 
of current and reasonably foreseeable financial or other 
assistance needed to maintain the property in a livable and 
financially viable condition, an estimate of available 
resources, and of assistance needed from HUD programs.
     Required that the assessment for properties for 
the elderly also include a description of needs for supportive 
services, modernization, and personnel.
     Required that each owner submit copies of the 
assessment to residents for their comments before submission to 
HUD, and if relevant, a State Housing Finance Agency.
     Required HUD to review the assessments and submit 
annually to Congress an estimate of the funding levels required 
to address the needs of the properties for the elderly, 
specifically including costs of substantial repairs and 
addition of facilities such as dining rooms; the adequacy of 
geographical targeting of resources; and the state of local 
housing markets with respect to housing for the elderly in 
general.
     Added new criteria for selecting projects for 
receipt of flexible subsidy assistance and new requirements 
that owners must meet to receive it, including agreeing to 
maintain the project in low- or moderate-income use for its 
remaining useful life.

Mortgage Insurance and Secondary Mortgage Market
  FHA Mortgage Insurance Programs
     Authorized HUD to enter into commitments to insure 
mortgages with an aggregate principal amount of $65.9 billion 
in FY 1993 and $68.7 billion in FY 1994.
     Terminated the Federal Housing Administration 
Advisory Board as of January 1, 1995.
     Increased the maximum permissible amount of an 
insured mortgage, to the lesser of 95 percent, 107 percent, 130 
percent or 150 percent of the median one-family house price in 
the area for a one-family, two-family, three-family or four-
family residence, respectively, or 75 percent of the conforming 
loan limit for the secondary market as of September 30, 1992; 
similarly increased the permissible maximum loan to finance 
purchase of a manufactured house and the lot on which it was 
placed.
     Increased the mortgage limits for multifamily 
projects insured under Sections 207, 213, 220, 221(d)(3), 
221(d)(4), 231, and 234 by approximately 20 percent.
     Provided that the principal obligation of a home 
mortgage could not exceed 97 percent of the first $25,000 of 
the appraised value of the home, 95 percent of the appraised 
value between $25,000 and $125,000, and 90 percent of value in 
excess of $125,000.
     Amended the requirement that the fee for FHA 
insurance for home mortgages be 2.25 percent of the mortgage 
amount plus 0.55 percent annually to a requirement that the fee 
not exceed these amounts.
     Limited a mortgagor's claim for a distribution 
from the participating reserve account upon payment of the 
mortgage to six years from the date on which HUD sent notice to 
his/her last known address.
     Made mortgages on assisted living facilities for 
frail elderly persons eligible for insurance under Section 232.
     Required HUD to establish a pilot program in five 
states to promote purchase of energy-efficient single-family 
homes, and installation of cost-effective improvements in 
existing single-family homes, by permitting loan amounts to 
exceed the established mortgage limits by the cost of the 
energy-efficiency improvements, up to a designated amount; 
required training programs and active promotion of the pilot 
program. Required HUD to report within 18 months on the 
effectiveness of the program and to assess its potential for 
expansion, and also to expand the program within two years on a 
nationwide basis and to include new construction, unless HUD 
found it to be not practicable to do so.
     Amended the Multifamily Mortgage Foreclosure Act 
of 1981 (Part 6 of the Housing and Community Development Act of 
1981, Title III, P.L. 97-35, August 13, 1981) to include all 
insured multifamily housing, not just that insured under Title 
II of the National Housing Act and the Section 312 program.
     Studies and Reports. Required the GAO to submit a 
report by September 1, 1993, evaluating the methodology used in 
establishing both the loan limits for single-family houses and 
the conforming loan limits in the secondary market and the 
consequences of indexing the FHA limits to the adjustments in 
the conforming loan limits, and recommending changes in both 
the methodologies and the setting of FHA mortgage limits to 
achieve housing policy objectives.
     Required HUD to submit an annual report on the 
income and racial characteristics of families served by the 
single-family mortgage insurance program, and the proportions 
of central city and rural residents; and current impediments to 
serving low- and moderate-income and other disadvantaged groups 
and underserved areas.
     Required HUD to study and report within 12 months 
on the use and effectiveness of home sellers' and builders' 
warranties of homes sold with FHA mortgages.
  Secondary Mortgage Market Programs
     Authorized GNMA to issue guarantees in an 
aggregate amount of $88 billion in FY 1993 and $91.696 billion 
in FY 1994.
     Authorized GNMA to pay the difference in interest 
payable on an insured bond and the interest paid by a mortgagor 
on the mortgage backing the bond, when the interest on the 
mortgage has been reduced by Federal law for a mortgagor in 
military service.
  Multifamily Housing Finance Improvement Act
     Directed FHA to carry out a demonstration program 
providing new forms of credit enhancement for multifamily 
loans, particularly the effectiveness of reinsurance and risk-
sharing agreements with various public and private lending 
institutions in providing a more adequate supply of credit for 
multifamily housing.
     Risk-Sharing Pilot Program. Established a pilot 
program under which FHA was to enter into reinsurance 
agreements with FNMA, FHLMC, qualified financial institutions 
and housing finance agencies, and the Federal Housing Finance 
Board, with FHA to design and test a variety of methods of 
risk-sharing. Authorized inclusion of all forms of loans, such 
as construction and bridge financing, as well as new 
construction and resale mortgages, limited to mortgages on not 
more than 15,000 units over FYs 1993 and 1994.
     Housing Finance Agency Pilot Program. Directed HUD 
to carry out a pilot program to test the effectiveness of risk-
sharing agreements with housing finance agencies in enhancing 
credit for multifamily affordable housing, limited to 30,000 
units over FYs 1993, 1994, and 1995. Defined affordable housing 
as housing occupied by very low-income families, in units with 
rents not higher than those established under the low-income 
housing tax credit program.
  Reports
     Required HUD, FNMA, FHLMC, the Controller General, 
and the Federal Housing Finance Board each to report on the 
effectiveness of the pilot programs, including recommendations 
for ways to achieve the purposes of the programs.
  National Interagency Task Force on Multifamily Housing
     Established the above-named Task Force, consisting 
of representatives of HUD and the various Federal agencies 
concerned with housing finance plus individuals appointed by 
the HUD Secretary representative of State and local housing 
finance agencies, the multifamily building industry, and the 
life insurance industry, and those appointed by the Chairman of 
the Federal Housing Finance Board representative of the 
financial service industry, the nonprofit housing development 
sector, and a nationally recognized rating agency.
     Required the Task Force to conduct a multifamily 
housing financial data base project, to analyze available data 
regarding the performance of multifamily mortgage loans, 
prepare a national data base on the operation and financing of 
multifamily housing, identify factors affecting the financing 
and operation of such housing, and develop standards and 
procedures to improve underwriting and accelerate development 
of a strong secondary market for loans. Required a final report 
within one year.
     Authorized appropriations of $6 million in FY 1993 
and $6.252 million in FY 1994.

Housing for Elderly Persons and Persons with Disabilities
  Supportive Housing Programs
     Housing for the Elderly. Provided a 70-30 percent 
split in funding for housing for the elderly and handicapped, 
rather than the previous 80-20 percent.
     Required HUD to reserve from funds available for 
Section 202 housing in each of FYs 1993 and 1994 sufficient 
funding to provide at least 100 units of elder cottage housing 
(ECHO) in the demonstration project established in the National 
Affordable Housing Act of 1990.
     Authorized owners of Section 202 projects to use 
residual receipts above an amount of $500 per unit for 
retrofitting or renovating the project, for provision of a 
service coordinator, or to provide supportive services.
     Amended the program to require that 15, rather 
than 20, percent of appropriated funds be used in 
nonmetropolitan areas.
     Congregate Housing Services Program. Required HUD 
to send to Congress within 15 days proposed interim regulations 
implementing the congregate housing program as established in 
the National Affordable Housing Act of 1990 (NAHA), to publish 
such interim regulations within 45 days for immediate effect, 
and to publish final regulations within 90 days of publishing 
the interim regulations.
     Housing Opportunities for Persons with Aids. Made 
nonprofit agencies an eligible grantee, and amended slightly 
the definitions, formula allocation, and other aspects of the 
program established in NAHA.
     Made members of the family of a person with AIDS 
eligible to receive assistance under the program, in addition 
to the persons themselves.
     Deleted the requirement that rental assistance be 
provided only for a short term.
     Required HUD to issue interim and final 
regulations to put this program into effect within the same 
time period as stated with respect to the Congregate Housing 
Services Program.

Designated Assisted Housing for Elderly and Disabled Families
     Amended the definition of family in the United 
States Housing Act of 1937, as amended, to separate the 
cojoined ``elderly and disabled'' into two distinct classes, 
``elderly'' and ``disabled.''
     Public Housing. Permitted a public housing agency, 
subject to prior approval of an allocation plan, to designate a 
project or portions of a project for occupancy by only elderly 
or only disabled families, or both.
     Prohibited eviction of any current resident 
because of the designation of the project; permitted offering 
of inducements to move, provided the tenant's decision was 
completely voluntary, and permitted tenants to request a move 
to a differently designated type.
     Required that the allocation plan provide a 
description of the projects to be designated, of the current 
occupants, and of the estimated pool of applicants for the 
designated housing; and an estimate of how receipt of housing 
assistance might be affected by the designations.
     Provided that designation of a project for 
disabled be approved only if it includes a plan for provision 
of supportive services.
     Required, in FYs 1993 and 1994, that at least 5 
percent of funds reserved for major reconstruction of obsolete 
projects and 5 percent of other development funds be used for 
projects designated for occupancy by disabled families; and 
other development funds be used for projects designated for the 
elderly only if the agency certifies that such use will assist 
in expanding the housing opportunities of eligible disabled 
persons.
     Section 8 and Other Assisted Housing. Permitted 
preference to be given to elderly families for occupancy in 
Section 8 New Construction or Substantially Rehabilitated 
projects built for the elderly, except that the higher of 10 
percent of the units or the percentage occupied by non-elderly 
disabled families on January 1, 1992, or the date of enactment 
of this Act must be reserved for occupancy by such families; 
provided for priorities in preferences in the cases of 
insufficient numbers of applicants who were elderly, non-
elderly disabled, or near-elderly disabled families.
     Provided that housing for the elderly developed 
under Sections 202, 221(d)(3), and 236 continue to restrict 
occupancy under the same terms as when the projects were 
developed.
  Standards and Obligations of Residency
     Required HUD to establish a task force on 
occupancy criteria in projects receiving project-based housing 
assistance, to review current standards and obligations on 
admittance and continued residence, to develop necessary and 
desirable criteria, and ways of providing guidance to owners to 
conform to the criteria.
     Required the task force to produce a preliminary 
report within three months and a final report within six months 
of enactment.
     Required HUD to establish criteria for selection 
of tenants for occupancy in assisted housing, with 
consideration given to the recommendations of the task force.
     Required owners to comply with the established 
criteria.
  Service Coordinators for Elderly and Disabled Residents
     Required HUD, to the extent funds were made 
available in appropriation acts, to require owners of assisted 
housing to retain service coordinators to identify supportive 
services needed by elderly and disabled residents, and to 
coordinate provision of such services. Authorized use of public 
housing operating subsidies, Section 8 subsidies in project- 
based assistance, administrative fees to PHAs for tenant-based 
assistance, and special grants to owners in the interest-
reduction subsidy programs to pay for employment of service 
coordinators in the various programs, and authorized additional 
funding to cover the added costs.

Rural Housing
     Authorized FmHA Section 502 loans for purchase of 
homes on land owned by a community land trust.
     Added tribal allotted or Indian trust land to 
remote rural areas, in specifying places in which loans could 
be supplemented by grants. Also added a requirement that at 
least five counties or communities containing such land be 
included among places designated as underserved areas.
     Established a rural housing voucher program 
analogous to the HUD voucher program, for up to 5,000 vouchers 
a year, subject to appropriation of funds.
     Amended provisions covering rental housing loans 
to provide for coordinating development and rental assistance 
loans, and loans and low-income tax credit allocations; amended 
procedures to eliminate possible abuses of the program. 
Authorized grants to Section 515 projects housing a sufficient 
number of frail elderly for employment of service coordinators, 
as in HUD projects.
     Amended the preservation grant program to permit 
grants of up to $15,000 for replacement, rather than only 
rehabilitation, of owner-occupied housing, if rehabilitation is 
not feasible and the owner cannot qualify for a Section 202 
loan.
     Extended limitations on prepayment of Sections 514 
and 515 loans, applicable to projects financed before December 
21, 1979, to those financed before the Department of Housing 
and Urban Development Reform Act of 1989 (P.L. 101-235, 
December 15, 1989), and established an Office of Rental 
Preservation within FmHA, to administer the rural housing 
preservation programs.

Community Development
  Community Development Block Grants
     Expanded the purposes of Special Purpose Grants to 
fund joint projects of State and local governments and 
institutions of higher education; to aid non-entitlement local 
governments adversely affected by military base closings and 
cuts in defense spending; and to rebuild and revitalize 
distressed areas of the Los Angeles metropolitan area.
     Permitted State designation of consortia of local 
governments in non-entitlement areas eligible to receive grants 
and expanded the definition of urban counties.
     Required HUD, using recaptured HoDAG funds, to 
implement a training program for HUD staff with 
responsibilities for economic development projects financed 
with CDBG funds; to develop guidelines to assist communities 
using CDBG funds for such projects in evaluating and selecting 
them; and required GAO to study the effectiveness of CDBG-
funded activities in furthering the program's goals and to make 
recommendations for regulatory or legislative changes to ensure 
effective use of the funds and criteria for evaluation.
     Added to the permissible use of CDBG funds, to 
expand technical assistance to entities using the funds, 
provision of housing services, and assistance to establishment 
of microenterprises.
  John Heinz Neighborhood Development Act
     Made permanent the program established as a 
demonstration in the Housing and Urban-Rural Recovery Act of 
1983 (P.L.98-181, November 30, 1983) and renamed it the John 
Heinz Neighborhood Development Program.
     Increased the maximum grant in one year to a 
participating organization to $75,000 from $50,000, in any year 
in which the appropriation for the program exceeds $3 million.
     Added to entities eligible for assistance a 
nonprofit facility acting as a small business incubator.
     Expanded the definition of eligible organizations 
to include one operating in a Federal or State enterprise zone 
or distressed area as defined by the Bank Enterprise Act of 
1991.
     Designated Federally-insured depository 
institutions, including banks, bank holding companies, and 
credit unions, as ``neighborhood development funding 
organizations,'' and encouraged neighborhood development 
corporations to obtain funding and other support from them by 
including such support among the criteria for selecting grant 
recipients and the size of matching grants.
  Community Outreach Partnership Act of 1992
     Required HUD to carry out a five-year 
demonstration program on the feasibility of partnerships 
between institutions of higher learning and communities to 
assist in the solution of urban problems through research and 
outreach.
     Authorized grants, on a competitive basis, to 
public and private nonprofit institutions of higher education 
to establish and operate Community Outreach Partnership Centers 
to conduct research on a wide range of urban problems, to 
facilitate outreach activities between such institutions, local 
communities, and local governments, and to aid in disseminating 
information on problems and their solutions.
     Required each Center to establish a community 
advisory committee consisting of representatives of local 
institutions and residents of communities to be served.
     Required HUD to establish a national advisory 
council consisting of 12 members appointed by HUD representing 
State and local governments, institutions receiving grants, 
experts in urban issues, and community advisory committees, to 
disseminate the results of research conducted in the program, 
act as a clearing house between grantees and other institutions 
of higher education, and to review and evaluate programs 
carried out by grant recipients. Provided the Federal grant 
cover not more than 50 percent of the cost of research 
activities and 75 percent of the outreach activities.
     Authorized a set-aside of $7.5 million for this 
program for each fiscal year from funds appropriated for the 
Community Development Block Grant program.
  Computerized Database Demonstration
     Required HUD to establish a demonstration program 
to determine the feasibility of helping State and local 
governments use computer-based methods to develop and maintain 
an inventory of community development needs and to coordinate 
strategies among local governments in meeting these needs.
     Required HUD to develop and make available to 
States an integrated database system and computer mapping tool 
to store and retrieve information on nonhousing community 
development needs, to facilitate preparation of community 
development plans.
     Established a competitive grant program to States 
of up to $1 million for a single State, for capital costs in 
installing and using the database system and mapping tool 
developed by HUD.
     Authorized appropriation of $10 million in each of 
FYs 1993 and 1994 to carry out this program.
  Community Investment Corporation Demonstration Act
     Authorized a demonstration program in which HUD 
could make loans or grants on a competitive basis to eligible 
depository institution holding companies and nonprofit 
organizations, to assist them in providing capital assistance 
for activities which facilitate revitalization of targeted 
geographic areas or provide economic opportunities for low-
income persons.
     Authorized loans and grants to provide development 
services, technical assistance, and training programs to 
eligible organizations to assist them in carrying out the 
purposes of this program.
     Required HUD to establish an advisory board with 
which to consult in establishing requirements and in 
considering applications for the program, consisting of 13 
members, including the Administrator of the Small Business 
Administration and representatives of various organizations 
with expertise in development, credit, and low-income community 
needs.
     Authorized appropriations of $25 million for FY 
1993 and $26 million for FY 1994 for the capital assistance 
program; $15 million for FY 1993 and $15.6 million for FY 1994 
for the development services and technical assistance programs; 
and $2 million for FY 1993 and $2.1 million for FY 1994 for the 
training program.
  Emergency Assistance for Los Angeles
     Made matching funds available, from Community 
Development Block Grant appropriations, for nonprofit public 
benefit corporations established by State and local 
organizations in response to the riots in Los Angeles.

Regulatory and Miscellaneous Programs
     Restructured the functions of the Special 
Assistant for Indian and Alaska Native Programs and placed his 
office in the Office of the Assistant Secretary for Public and 
Indian Housing.
     Amended the fair housing initiatives program 
established in the Housing and Community Development Act of 
1987 (P.L. 100-242, February 5, 1988) to require HUD to 
conduct, through contracts with private nonprofit fair housing 
enforcement agencies, a number of investigative and enforcement 
activities, including testing, education and outreach programs, 
capacity-building, and others.
     Amended the Real Estate Settlement Procedures Act 
of 1974 (P.L. 93-533, December 22, 1974) to make clear that its 
terms applied to the origination of mortgage loans, and to 
second mortgages and refinancing of mortgages.
     Required HUD to establish guidelines for housing 
credit agencies in carrying out the requirement that layered 
subsidies for projects using the low-income housing tax credit 
be no greater than necessary to permit low-income occupancy.
     Amended the provision requiring HUD-financed 
programs to be used to promote employment opportunities for 
lower-income persons residing in the appropriate jurisdiction 
(Section 3 of the Housing and Urban Development Act of 1968, 
P.L. 90- 448, August 1, 1968), to strengthen the requirement by 
specifying the particular programs and listing the types of 
persons to be given priority in employment; required HUD to 
report within a year on the effectiveness of the program and 
impediments to its implementation.
     Made a number of administrative, regulatory and 
programmatic amendments to a variety of HUD programs.
Residential Lead-Based Paint Hazard Reduction Act of 1992
  Lead-Based Paint Hazard Reduction
     Established a program to develop a national 
strategy to eliminate lead-based paint (LBP) hazards in all 
housing as expeditiously as possible, to prevent childhood lead 
poisoning, and to educate the public concerning LBP hazards and 
ways to eliminate them.
     Authorized HUD to provide grants on a competitive 
basis to State or local governments with an approved 
comprehensive housing affordability strategy (CHAS) to 
undertake inspection, assessment, and abatement activities to 
reduce or eliminate LBP hazards in priority housing; i.e., 
affordable housing constructed before 1978 (except efficiency 
units or that for elderly and handicapped persons).
     Authorized HUD to make grants to States of up to 
$200,000 to establish training, certification, or accreditation 
programs for those acting to fulfill a CHAS requirement to 
include plans for detection and reduction of LBP hazards in 
housing policies and programs; set aside $3.0 million in each 
of FYs 1993 and 1994 from funds appropriated for this Act to 
carry out this grant program.
     Authorized appropriation of $125 million for FY 
1993 and $250 million for FY 1994 to carry out this Act. 
Amended the Lead-Based Paint Poisoning Prevention Act (P.L. 91-
695, January 13, 1971) to require periodic risk assessments and 
interim control measures in Federally- assisted family housing 
built before 1978 in accordance with a designated time 
schedule; reduction or abatement of hazards in units undergoing 
rehabilitation with Federal funding; and provision of 
information on the activities and remaining hazards to 
occupants of such housing.
     Required the abatement of LBP hazards prior to the 
sale of Federally- owned housing built before 1960, after 
January 1, 1995, and notification to prospective purchasers 
prior to sale of existing hazards in such housing built between 
1960 and 1978.
     Required HUD, in consultation with the 
Environmental Protection Agency (EPA), to establish a task 
force with representatives from Federal agencies and private 
organizations and persons concerned with housing, to recommend 
ways of expanding resources available to evaluation and 
reduction of LBP hazards in privately owned housing.
     Required HUD to issue guidelines for conduct of 
Federally supported work in connection with activities related 
to LBP hazards, based on the condition of housing and presence 
of young children, not on the health of the occupants.
     Required owners of target housing prior to sale or 
lease to disclose information about known LBP hazards in the 
structure to potential occupants, in accordance with 
regulations to be issued by HUD and EPA within two years.
     Added a new Title IV to the Toxic Substances 
Control Act requiring EPA to issue regulations governing a 
number of activities concerned with LBP, including guidelines 
in connection with renovation and remodeling of target housing.
     Required HUD, in cooperation with other Federal 
agencies, to conduct research on ways of reducing the risk of 
lead exposure from residential structures, soil, and 
furnishings, and during the abatement process; set aside for 
this research, from appropriations for this Act, $5.0 million 
in each of FYs 1993 and 1994.
     Required GAO to assess the effectiveness of 
Federal enforcement and compliance with lead safety laws and 
regulations, including changes in inspections needed to 
identify LBP hazards in units receiving Section 8 assistance, 
and the availability of liability insurance for owners of 
housing with LBP hazards and persons engaged in activities 
related to LBP.
     Required HUD to report annually on progress in 
implementing the various programs authorized in this Act and 
the state of knowledge about lead poisoning effects and hazards 
in its removal; and to report biannually on expansion of HUD 
activities in relation to hazard evaluation and reduction, 
including recommendations for the infrastructure needed to 
eliminate the hazards.
New Towns Demonstration Program for Emergency Relief of Los Angeles
     Authorized HUD to provide assistance, subject to 
appropriations, to units of local government, governing boards, 
and eligible mortgagors, in connection with development of two 
new towns located in demonstration areas within the Los Angeles 
area designated as a Federal disaster area as a result of the 
civic unrest in 1992.
     Established criteria for selecting the 
demonstration areas relating to indices of poverty, 
unemployment, and general distress.
     Required organization of a governing board, 
consisting of at least 10 members representing residents, 
owners of businesses, financial institutions, and community 
organizations in the area, to draw up and carry out a new town 
plan.
     Required the program to construct or renovate at 
least 1,500 dwelling units, of which at least 60 percent were 
to be for homeownership by families with incomes not exceeding 
115 percent of the area median; required that rental units be 
limited to families or elderly persons with incomes 60 percent 
of median or less than $20,000, paying no more than 30 percent 
of income for rent.
     Required HUD, subject to appropriations, to 
provide assistance of up to $50,000 per unit for the housing 
program, with provision for possible partial recapture.
     Made special provision for FHA insurance of 
mortgages on homes purchased under this program.
     Required the program to provide social and 
supportive services, including housing counseling, child care, 
educational, job training, and recreational programs, and 
others as appropriate; required, to the extent practicable, 
that residents of the area be employed in connection with 
activities conducted under the program.
Removal of Regulatory Barriers to Affordable Housing Act of 1992
     Defined ``regulatory barriers to affordable 
housing'' as those policies, regulations, and statutes which 
are required to be so identified in the Comprehensive Housing 
Affordability Strategy required by the National Affordable 
Housing Act, excluding rent control, relocation protections, 
and measures for creation or preservation of affordable 
housing.
     Authorized HUD to make grants, from funds set 
aside from appropriations for CDBG grants, to State and local 
governments to develop and implement strategies to remove 
regulatory barriers.
     Required HUD to establish a clearinghouse for 
information relating to the policies, strategies, and actions 
of all types undertaken by State and local governments to 
eliminate regulatory barriers and promote affordable housing.
     Required HUD to report within two years on 
successful State and local strategies for eliminating 
regulatory barriers, on the impact of such barriers on minority 
housing patterns, and on HUD's efforts to reduce barriers on 
affordable housing imposed by the Federal Government.
Federal Housing Enterprises Financial Safety and Soundness Act of 1992
     Established the Office of Federal Housing 
Enterprise Oversight, located in HUD but independent of the HUD 
Secretary in carrying out its mission to regulate FNMA and 
FHLMC on issues relating to the safety and soundness of their 
operations.
     Required that the Director of the Office be 
appointed by the President, with the advice and consent of the 
Senate.
     Continued HUD oversight of the enterprises' 
housing mission.
     Established new capital standards for the 
enterprises, specifying three ``levels,'' using economic stress 
tests and percentage of asset amounts weighted by type of 
asset, to measure safe levels of capital. Set up four 
classifications of capital, and made enforcement provision more 
stringent for each next lower level into which an enterprise 
fell; established enforcement procedures.
     Required HUD to establish an annual goal for the 
number of mortgages for low- and moderate-income families to be 
purchased by each enterprise, considering housing needs, 
economic and demographic conditions, and the condition of the 
enterprises; required establishment of special goals for 
special affordable housing, and for housing in central cities, 
rural areas, and other underserved areas; established 
enforcement procedures. Required the GAO, HUD, the Treasury, 
and CBO independently to study and report within two years to 
the House and Senate Banking Committees on the desirability and 
feasibility of privatizing each of the enterprises.
Steward B. McKinney Homeless Assistance Amendments Act of 1992
     Required recipients of funds to involve homeless 
persons and families whenever possible in the assisted housing 
and service activities, and for all recipients except States to 
provide for participation of at least one homeless or former 
homeless individual on the board of directors or other policy-
making body.
  Supportive Housing Program
     Amended Title IV of the McKinney Homeless 
Assistance Act (P.L. 100-77 as amended) to combine Subtitle C, 
Supportive Housing Demonstration Program, and Subtitle D, 
Supplemental Assistance for Facilities to Assist the Homeless, 
into one Supportive Housing Program, keeping essentially the 
same requirements, procedures, and eligible activities, but 
eliminating the need for separate applications.
     Allocated, from appropriated funds for Supportive 
Housing, not less than 25 percent to projects designed for 
homeless families with children; not less than 25 percent to 
projects for homeless persons with disabilities; and not less 
than 10 percent for supportive services not otherwise provided 
for.
  Safe Havens for Homeless Individuals Demonstration Program
     Established a new competitive demonstration grant 
program under Title IV, to demonstrate the desirability and 
feasibility of providing safe havens to certain mentally ill 
homeless persons.
     Defined ``safe haven'' as a facility providing 24-
hour housing for no more than 25 homeless, mentally ill persons 
who were currently unwilling or unable to participate in mental 
health or substance abuse treatment programs.
     Authorized five-year grants, renewable for an 
additional five years, of not more than $400,000 in any five-
year period, to nonprofit corporations, public nonprofit 
organizations, and State and local governments, on a 50 percent 
matching basis.
     Authorized use of grants to acquire and operate a 
facility as a safe haven, providing shelter and normal housing 
facilities, offering but not requiring supportive services.
     Required payment by a resident of a rental charge 
of no more than that which would be required in the assisted 
housing program, but permitted limited waiver by the grantee; 
authorized use of the rental fees to assist residents move to 
more traditional types of permanent housing.
     Required HUD to submit an evaluation report on the 
program not later than December 31, 1994.
     Authorized appropriation of $62 million for FY 
1993 and $64.6 million for FY 1994.
  Single-Room Occupancy Dwellings
     Added private nonprofit organizations to public 
and Indian housing agencies as eligible grantees for 
sponsorship of Section 8 single-room occupancy dwellings for 
the homeless.
     Required that applicants involve homeless 
individuals and families through employment or voluntary 
activities, in the rehabilitation and operation of facilities 
and provision of services, and, if a nonprofit organization, 
have at least one homeless or previously homeless person on its 
board of directors.
  Shelter Plus Care
     Amended Subtitle F of Title IV of the McKinney Act 
to consolidate its parts into four programs: tenant-based, 
project-based, and sponsor-based rental assistance programs, to 
provide grants to recipients to provide rental assistance to 
tenants in units of their own choice; to owners of projects who 
agree to rent to eligible persons; and to private nonprofit 
sponsors who own or lease units made available to eligible 
persons; and Section 8 moderate rehabilitation assistance for 
single-room occupancy dwellings. Struck Part IV, Shelter Plus 
Care for Sections 202 and 811 rental assistance for the elderly 
and handicapped.
     Provided that not less than 10 percent of 
appropriated funds be available for each of the four programs.
  FHA Single-Family Property Disposition
     Required that HUD-held properties be held for sale 
for at least 30 days before becoming available for lease in the 
program for leasing properties for use for assistance to the 
homeless, except that HUD could make up to 10 percent of the 
properties in the area available for immediate leasing if it 
determined there were an insufficient number of units available 
for the leasing program.
  Rural Homeless Housing Assistance
     Established a new grant program under which, 
subject to appropriations, HUD was to make competitive grants 
to private nonprofit entities, Indian tribes, and county and 
local governments in rural communities to assist in prevention 
of homelessness and to provide emergency shelter, permanent 
housing for the homeless, and supportive services.
     Required 25 percent of costs of assistance come 
from non-Federal funds.
     Required that at least 50 percent of the fund be 
awarded to organizations serving communities with populations 
under 10,000, with priority to communities under 5,000 
population.
     Authorized appropriations of $30 million for FY 
1993 and $31.260 million for FY 1994.
     Required the Secretary of Agriculture, to the 
extent approved in appropriation acts, to lease or sell 
inventory properties to nonprofit organizations and public 
agencies to provide transitional housing for the homeless or 
turnkey housing for sale to eligible families; set out the 
conditions on which the leasing or sales were to occur.
  National Guard Facilities
     Required HUD to consult with the States and 
Secretary of Defense on the availability and feasibility of 
space in National Guard facilities for use by organizations 
providing shelter to homeless families and individuals.
     Required HUD to report within one year on the 
results of the consultations, together with recommendations for 
regulatory or legislative actions.

                     HUD Demonstration Act of 1993

                 (Public Law 103-120, October 27, 1993)

     Directs the Secretary of Housing and Urban 
Development (Secretary of HUD) to carry out an innovative 
homeless initiatives demonstration program through FY 1994. 
Authorizes FY 1994 appropriations.
     Amends the Housing and Community Development Act 
of 1992 to increase funding for the Moving to Opportunity for 
Fair Housing demonstration program.
     Authorizes the Secretary to provide assistance to 
the National Community Development Initiative for grants to 
local community development organizations for: (1) training and 
capacity building; (2) technical assistance; and (3) community 
development and housing assistance. Authorizes FY 1994 
appropriations.
     Amends the Cranston-Gonzalez National Affordable 
Housing Act to increase the authorization of appropriations for 
community housing partnership activities.
     Directs the Secretary to carry out a demonstration 
program through FY 1998 to attract pension fund investment in 
affordable housing through the use of project-based rental 
assistance under section 8 of the United States Housing Act of 
1937. Requires that at least half of appropriated funds be used 
in the disposition of multifamily properties. Requires a 
General Accounting Office program evaluation report. Authorizes 
FY 1994 program appropriations.
     Amends the Cranston-Gonzalez National Affordable 
Housing Act to extend: (1) the termination date for the 
National Commission on Manufactured Housing; (2) the deadline 
for the Commission's final report (after an interim report); 
and (3) authorization of appropriations for the Commission.
     Amends the Housing Act of 1949 to: (1) extend 
authority for Federal agency housing subdivision approval 
reciprocity; (2) increase Federal Housing Administration (FHA) 
insured mortgage authority; and (3) increase Government 
National Mortgage Association (GNMA) guarantee authority.
     Sets forth an administrative fee formula for the 
section 8 certificate and voucher programs. Directs the 
Secretary to assess public housing agency costs in 
administering such programs. Amendments to the Housing and 
Community Development Act of 1992, Public Law 103-185, December 
14, 1993
     Amends the Housing and Community Development Act 
of 1992 to permit a State to consider the amount of the heating 
or cooling component of a utility allowance received by a 
tenant in federally-assisted housing when setting benefit 
levels under the Low-Income Home Energy Assistance Program.
     Requires such reduction to be reasonably related 
to the amount of the heating or cooling component. Resolution 
Trust Corporation Completion Act, Public Law 103-204, December 
17, 1993
     Requires the Resolution Trust Corporation (RTC) to 
institute specified management reforms, including: (1) 
establishment of a comprehensive business plan; (2) marketing 
of real property assets on an individual basis for a certain 
period before disposing of them on a portfolio basis or 
including them in a multiasset sales initiative (except in 
specified circumstances); and (3) specified procedures for RTC 
disposition of real-estate related assets, among other things.
     Requires the RTC to: (1) grant preference to 
certain offers from minority individuals or business entities 
when considering offers to acquire an insured depository 
institution located in a predominantly minority neighborhood; 
(2) apply competitive bidding procedures in awarding contracts 
that are no less stringent than those in effect on the date of 
enactment of this Act; (3) restrict the use of outside counsel 
to specified conditions; (4) ensure that each of its regional 
offices contains a client responsiveness unit responsible to 
its ombudsman; and (5) implement a process for non-defaulting 
business and commercial borrowers to appeal any of its 
decisions (when acting as a conservator) which would adversely 
affect their credit transactions.
     Amends the Federal Home Loan Bank Act (FHLBA) to 
increase, subject to appropriations, the maximum dollar limits 
for condominium and single family properties eligible for the 
RTC affordable housing program.
     Amends the Federal Deposit Insurance Act (FDIA) to 
include within the FDIC affordable housing program properties 
acquired by the FDIC in its capacity as sole owner of certain 
subsidiaries of a depository institution under conservatorship 
or receivership.
     Amends the FHLBA and the FDIA to direct the RTC 
and the FDIC to notify clearinghouses within a reasonable time 
that they have acquired title to residential property 
ineligible for the affordable housing program.
     Establishes the Affordable Housing Advisory Board 
to advise the Thrift Depositor Protection Oversight Board and 
the Board of Directors of the FDIC on affordable housing 
policies and operations. Terminates such Board on September 30, 
1998. Terminates the National Housing Advisory Board 90 days 
after enactment of this Act.
     Amends the FHLBA and the FDIA to direct the RTC 
and the FDIC to provide information on the availability of 
seller financing to minority- and women-owned businesses and 
nonprofit organizations engaged in providing affordable 
housing.
     Amends the FHLBA and the FDIA to direct the RTC 
and the FDIC to enter into an agreement setting forth a plan 
for the orderly unification of their respective activities, 
authorities, and responsibilities to achieve an effective and 
comprehensive affordable housing program management structure. 
Prescribes agreement guidelines. Transfers remaining 
authorities and responsibilities to the FDIC on October 1, 
1995. Limits the liability of the RTC and the FDIC with respect 
to the disposition of assets for which they have respectively 
been appointed conservator or receiver.
     Amends the FHLBA and the FDIA to authorize the RTC 
and the FDIC, respectively, to offer the right of first refusal 
to purchase single family property to the household residing in 
it.
     Amends the FHLBA and the FDIA to direct the RTC 
and FDIC, when selling real property, to give preference, among 
purchase offers that will result in the same net present value 
proceeds, to those that would use the property to provide 
housing for the homeless.
     Amends the FHLBA and the FDIA to direct the RTC 
and the FDIC to grant sales preferences to public agencies and 
nonprofit organizations for affordable housing or homeless 
shelter programs when selling certain commercial real 
properties.
     Amends the FHLBA to direct member banks to: (1) 
implement a housing opportunities hotline program to provide 
information regarding opportunities to purchase single-family 
properties held by Federal agencies located in the member 
bank's district; and (2) establish a toll-free telephone line 
to disseminate such information.
     Requires the Comptroller General to study and 
report to the Congress on: (1) the effectiveness of the RTC 
Affordable Housing Program in providing affordable very low-, 
low-, and moderate-income housing; and (2) feasibility of 
establishing a single Federal agency to consolidate real 
property disposition activities now conducted separately by the 
RTC, the FDIC, and certain other Federal agencies. Multifamily 
Housing Property Disposition Reform Act of 1994, Public Law 
103-233, April 11, 1994 Multifamily Property Disposition Reform
     Amends the Housing and Community Development 
Amendments of 1978 to revise provisions regarding the 
management and disposition of HUD-held multifamily properties 
and mortgages.
     Authorizes the Secretary to dispose of a HUD 
project on a competitive or other basis to a purchaser 
determined by the Secretary to be capable of its management.
     Provides for the payment of project-based 
assistance under section 8 of the United States Housing Act of 
1937 for subsidized or formerly subsidized projects receiving 
mortgage-related or rental assistance. Authorizes the Secretary 
to make alternative assistance available (such as use and rent 
restrictions or section 8 assistance only to very low-income 
persons) for certain unsubsidized projects under specified 
circumstances.
     Requires the Secretary, with respect to 
unsubsidized projects, to provide project-based or tenant-based 
rental programs prior to purchase.
     Authorizes the Secretary to enter into an annual 
contribution contract with a public housing agency to provide 
section 8 assistance on behalf of all low-income families in a 
purchased project if sufficient affordable housing is locally 
available.
     Authorizes alternative disposition assistance, 
including: (1) discounted sales price; (2) use and rent 
restrictions; (3) up-front grants; (4) tenant-based assistance; 
(5) rebuilding assistance; or (6) alternative uses and uses 
under other housing programs.
     Provides protections for unassisted very low-
income tenants and displaced tenants.
     Provides for 15-year rental assistance contracts, 
with shorter contracts permitted under specified conditions.
     Grants a right of first purchase refusal to local 
and State entities.
     Authorizes the sale of mortgages covering 
unsubsidized projects.
     Authorizes the Secretary to provide: (1) short-
term loans to facilitate the sale of multifamily housing 
projects to nonprofit organizations or public agencies, subject 
to specified conditions; and (2) tenant-based assistance to 
very low-income families that do not otherwise qualify for 
project-based rental assistance.
     Amends the Housing and Community Development Act 
of 1987 to eliminate the State agency multifamily property 
disposition demonstration program.
     Amends the Housing and Community Development Act 
of 1992 with respect to the comprehensive needs assessment 
which owners of covered multifamily housing properties, 
including those for the elderly, must submit to the Secretary.
     Requires preparation of the assessment by an 
entity that has no identity of interest with the owner.
     Revises the schedule for submission of all such 
assessments by the end of FY 1997.
     Requires the Secretary to allow 30 days for 
completion or revision of incomplete or inadequate assessments.
     Authorizes the Secretary to allocate, non-
competitively, operating assistance, capital improvement 
assistance, and loan management assistance on the basis of such 
assessments.
     Amends the Housing and Community Development 
Amendments of 1978 with respect to the flexible subsidy program 
to repeal mandatory: (1) utility cost considerations in rental 
approvals; and (2) minimum owner contributions to capital 
improvements, and related requirements. Revises the selection 
criteria for capital improvement assistance.
     Directs the Secretary, as soon as practicable, to 
implement a streamlined refinancing program to prevent the 
default of FHA-insured mortgages covering multifamily housing 
projects.
     Requires the Comptroller General to report to 
specified congressional committees: (1) on the adequacy of loan 
loss reserves in the General Insurance and Special Risk 
Insurance Funds, presenting recommendations for the Secretary 
to prevent such losses; and (2) on the roles and performance of 
the nursing home, hospital, and retirement service center 
insurance programs as they relate to the General Insurance 
Fund.
     Amends the National Housing Act to require the 
Secretary to undertake annual reviews of the actuarial 
soundness of each of the insurance programs constituting the 
General and the Special Risk Insurance Funds.
     Authorizes the Secretary to permit the mortgagor 
of a multifamily housing project subject to an insured 
mortgage, in order to prevent its imminent default, to use the 
project for purposes not contemplated by or permitted under the 
regulatory agreement, if such uses meet certain criteria. 
Requires displaced tenant protection of alternate housing and 
rental assistance.
     Amends the Department of Housing and Urban 
Development Act to repeal the Secretary's: (1) mandate to 
reduce the interest rate on a mortgage held by the Secretary to 
a certain minimum rate if necessary to avoid foreclosure; and 
(2) authority to increase a reduced rate once the mortgagor's 
income or ability to pay interest has increased.
     Amends the National Housing Act to authorize 
appropriations for the General and the Special Risk Insurance 
Funds for FY 1994 and 1995. Home Investment Partnerships 
Program
     Amends the Cranston-Gonzalez National Affordable 
Housing Act to make State agencies eligible to participate in 
the HOME investment partnerships program (program).
     Eliminates from the program the first-time 
homebuyer requirement and simplifies resale provisions.
     Requires each jurisdiction participating in the 
program to contribute at least 25 percent of the funds drawn 
from their HOME Investment Trust Funds in each fiscal year for 
contributions to affordable housing under the program.
     Eliminates from the program the separate 
(Comptroller General) audit requirement.
     Amends the Housing and Community Development Act 
of 1974 to permit the use of community development block grant 
(CDBG) funds for program expenses.
     Suspends program requirements (with exceptions) 
for certified disaster area use. HOPE Homeownership Program
     Reduces the HOPE single-family ownership program 
recipient matching requirement from 33 percent to 25 percent. 
Community Development Block Grants
     Amends the Housing and Community Development Act 
of 1974 to authorize the Secretary to make grants to enhance 
the security of guaranteed property acquisition loans or to 
improve project viability. Permits recaptured urban development 
action grant (UDAG) funds to be used for such grants.
     Amends the Housing and Community Development Act 
of 1974 to establish a UDAG retention program.
     Amends the Housing and Community Development Act 
to authorize the guarantee of section 108 loan-backed 
obligations.
     Suspends CDBG requirements (with exceptions) for 
certified disaster area use. Technical Amendments
     Amends the United States Housing Act of 1937 to 
state that adjustments to a public housing agency's operating 
subsidy shall reflect actual changes in rental income 
collections resulting from anticipated fraud recoveries.
     Amends the United States Housing Act of 1937 to 
permit public housing agencies owning and operating less than 
500 units to establish and maintain a system of accounting for 
rental collections and costs on an agency-wide basis rather 
than on a project-by-project basis.
     Revises environmental review provisions for the 
lead-based paint hazard reduction program under the Housing and 
Community Development Act of 1992 and for assisted housing 
programs under title I of the United States Housing Act of 
1937.
     Amends the United States Housing Act of 1937 to 
authorize the Secretary, in lieu of the environmental 
protection procedures otherwise applicable, to provide for the 
release of funds for projects or activities, upon the request 
of a public housing agency, if the State or local government 
assumes all of the responsibilities for environmental review, 
decision-making, and action under the National Environmental 
Policy Act of 1969 and related law which would otherwise apply 
to the Secretary.
     Amends the National Housing Act to revise 
specified multifamily mortgage limits.
     Amends the Housing and Community Development Act 
of 1992 to revise the: (1) multifamily housing risk sharing 
program; and (2) housing finance agency pilot program.
     Authorizes subsidy layering review by a housing 
credit agency certification of appropriate assistance limits.

  Riegle Community Development and Regulatory Improvement Act of 1994

                (Public Law 103-325, September 23, 1994)

Community Development Banking and Financial Institutions Act
     Establishes the Community Development Financial 
Institutions Fund (the Fund) as a wholly owned government 
corporation to promote economic revitalization and community 
development through an investment and assistance program for 
community development financial institutions. Vests Fund 
management in an Administrator.
     Establishes the Community Development Advisory 
Board to advise on Fund policies, but not on the granting or 
denial of any particular application. Prescribes selection 
criteria for community development partnerships and 
institutions.
     Mandates Fund assistance for a geographically 
diverse group of applicants from metropolitan, nonmetropolitan, 
and rural areas. Makes exceptions to non-Federal matching funds 
requirements in the case of an applicant with severe 
constraints on available source of matching funds.
     Provides for a Fund training program to assist the 
financial services industry to undertake community development 
activities. Authorizes the Fund to provide capitalization 
assistance to enhance the liquidity of community development 
financial institutions.
     Sets forth incentives within the parameters of the 
Bank Enterprise of 1991 for depository institutions to engage 
in community development banking through private investments in 
targeted activities in qualified distressed communities.
     Mandates that a community development financial 
institution receiving Fund assistance compile and maintain 
specified user profile data. Prescribes guidelines for 
coordinated recordkeeping and oversight by the Fund and the 
appropriate Federal banking agency.
     Directs the Fund to study and report to the 
President and the Congress on lending and investment practices 
on Indian reservations and other land held in trust by the 
United States. Instructs the Comptroller General to submit to 
the President and the Congress an evaluation of Fund structure, 
governance, and performance. Establishes an Inspector General 
for the Fund and authorizes appropriations for it.
     Amends the Federal Credit Union Act to authorize 
the National Credit Union Administration Board (NCUAB) to 
invest idle moneys from the Community Development Credit Union 
Revolving Loan Fund into Treasury securities, and to use the 
interest earned for technical assistance to community 
development credit unions. Home Ownership and Equity Protection
     Amends the Truth in Lending Act to set forth 
disclosure requirements for certain (closed-end) consumer 
credit transactions secured by a consumer's principal dwelling 
(other than a residential mortgage transaction, a reverse 
mortgage transaction, or a transaction under an open end credit 
plan) which meet specified criteria with respect to: (1) the 
annual percentage rate; and (2) points and fees which exceed 
certain limits. Prohibits such mortgages from containing: (1) 
prepayment penalties; (2) balloon payments; (3) negative 
amortization; and (4) prepaid payments. Prohibits a creditor 
from extending credit without regard to a consumer's repayment 
ability. Imposes a civil penalty for violations of this Act.
     Amends the Truth in Lending Act to require a 
creditor to conspicuously disclose specified lending data to a 
consumer in connection with reverse mortgage transactions.
     Directs the Board of Governors of the Federal 
Reserve System (the Board) to: (1) study and report to the 
Congress on the adequacy of Federal consumer protections in 
connection with an open end credit transaction secured by the 
consumer's principal dwelling; (2) report to the Congress on 
whether, for purposes of such transactions, a more appropriate 
interest rate index exists than the yield on Treasury 
securities; and (3) conduct periodic public hearings on the 
home equity loan market and the adequacy of existing consumer 
protection laws to protect low-income consumers.
Paperwork Reduction and Regulatory Improvement
     Amends the Real Estate Settlement Procedures Act 
(RESPA) of 1974 to exempt from its purview certain business, 
commercial, agricultural, and governmental credit transactions.
     Amends the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 to direct the Appraisal 
Subcommittee to encourage the States to develop reciprocity 
agreements allowing certified appraisers to perform appraisals 
in sister States.
     Amends the Home Owners' Loan Act to accelerate the 
effective date for interaffiliate transactions by well-
capitalized savings associations.
     Amends Federal banking law and the Home Owners' 
Loan Act to: (1) authorize national banks and Federal savings 
associations to purchase shares in a bankers' bank in cases 
where some of the other investors are depository institution 
holding companies; and (2) permit bankers' banks to provide 
services to such holding companies, and to provide 
correspondent banking services upon request.
     Requires reports to the Congress by the Secretary 
of the Treasury regarding inconveniences in the process by 
which credit is made available for consumers and small 
businesses.
     Amends the Fair Credit Reporting Act to require a 
consumer reporting agency to disclose to the consumer details 
of checks upon which an adverse characterization of the 
consumer is based.
     Directs the Board to submit recommendations to the 
Congress whether it would benefit consumers to have the option 
of waiving or modifying their rights of rescission with respect 
to debt consolidation or refinancing (without new advances).
     Amends RESPA to provide that creditors are in 
compliance with its mortgage transaction disclosure 
requirements if they submit a statement that the person making 
the loan has previously assigned, sold, or transferred the 
servicing of federally related mortgage loans (thus simplifying 
current disclosure requirements).
     Amends the Securities Exchange Act of 1934 to 
include commercial real estate within the definition of 
``mortgage related security'' (thus conferring upon such 
securities the benefits of the Secondary Mortgage Market 
Enhancement Act of 1984 and permitting depository institutions 
to purchase such securities subject to Federal regulatory 
oversight). Permits the States to ``opt-out'' of this Federal 
definition of mortgage related security upon enactment of 
specific legislation to the contrary. National Flood Insurance 
Reform
     Defines specified terms under the Flood Disaster 
Protection Act of 1973 and the National Flood Insurance Act of 
1968. Compliance and Increased Participation
     Amends the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act to prohibit any waiver of its flood 
insurance purchase requirements for recipients of disaster 
assistance for flood-damaged structures.
     Amends the Flood Disaster Protection Act of 1973 
to prohibit Federal agency lenders and government-sponsored 
enterprises for housing from entering into, or extending, any 
loan secured by improved real estate located in identified 
special flood hazard areas unless the property is adequately 
covered by flood insurance for the term of the loan. Exempts 
certain small loans from such flood insurance purchase 
requirements.
     Mandates that, with respect to loans secured by 
improved real estate or a mobile home, each: (1) Federal entity 
for lending regulation require specified lending institutions 
to establish escrow accounts for any flood insurance premiums; 
(2) Federal agency lender require and provide for escrow and 
payment of flood insurance premiums and fees; and (3) lender or 
servicer of such loans notify borrowers of such flood insurance 
purchase requirements. Requires such entities, upon borrower 
inaction, to purchase flood insurance on behalf of the 
borrower.
     Establishes civil penalties for regulated lending 
institutions with a pattern or practice of failure to require 
flood insurance or to notify borrowers of flood insurance 
purchase requirements. Authorizes lender fees for determining 
the applicability of such requirements.
     Amends the National Flood Insurance Act of 1968 to 
modify the special flood hazard notice requirements incumbent 
upon regulated lending institutions and Federal agency lenders.
     Sets a deadline by which the Director of the 
Federal Emergency Management Agency (FEMA) must develop a 
standard flood hazard determination form in connection with 
loans for residential properties located in special flood 
hazard areas.
     Amends the Federal Deposit Insurance Act, the 
Federal Credit Union Act, and the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992 to require the 
respective Federal regulatory agencies to report to the 
Congress on the compliance of lending institutions under their 
purview with the National Flood Insurance Program.
     Amends the Federal Financial Institutions 
Examinations Council Act of 1978 to direct the Financial 
Examinations Council to assist Federal entities for lending 
regulation to develop uniform flood insurance standards and 
requirements.

Ratings and Incentives for Community Floodplain Management Programs
     Amends the National Flood Insurance Act of 1968 to 
establish a voluntary community rating system and premium rate 
incentives for community floodplain management in the form of 
credits on premium rates. Provides for program funding.

Mitigation of Flood Risks
     Amends the National Flood Insurance Act of 1968 
to: (1) repeal the Flooded Property Purchase and Loan Program; 
(2) terminate the erosion-threatened structures program; (3) 
set forth a flood mitigation assistance program under which the 
FEMA Director must provide planning assistance grants to States 
and communities to implement flood damage mitigation 
activities; (4) establish the National Flood Mitigation Fund to 
finance such mitigation assistance program; and (5) mandate 
that the national flood insurance program enable the purchase 
of insurance to cover the cost of compliance with land use and 
control measures for specified damage- or loss-prone 
properties. Task Forces
     Establishes a two-year interagency Flood Insurance 
Task Force to: (1) make recommendations regarding standardized 
flood insurance enforcement procedures; (2) study and report on 
compliance assistance and compliance models; (3) develop 
recommendations for enforcement and compliance procedures; and 
(4) study the reasonableness of flood hazard determination 
fees.
     Establishes a two-year Task Force on Natural and 
Beneficial Functions of the Floodplain to study: (1) floodplain 
functions that reduce flood-related losses; and (2) develop 
recommendations on how to reduce flood losses by protecting the 
natural and beneficial functions of the floodplain.
Miscellaneous Provisions
     Amends the National Flood Insurance Act of 1968 to 
extend from September 30, 1995, to September 30, 1996: (1) the 
national flood insurance program; and (2) the authorities for 
its emergency implementation. Sets forth an annual limitation 
on chargeable risk premium rate increases for flood insurance 
on properties within any single risk classification.
     Amends the Housing and Community Development Act 
of 1987 to repeal the limitation on premium rate increases with 
respect to the National Flood Insurance Program.
     Increases the maximum flood insurance coverage 
amounts for residential and nonresidential property and its 
contents. Prescribes guidelines under which the FEMA Director 
is required to assess the need to update and revise floodplain 
areas and flood-risk zones at least every five years.
     Establishes the Technical Mapping Advisory Council 
to advise the FEMA Director on flood insurance rate maps.
     Instructs the FEMA Director to study and report to 
the Congress on: (1) the impact of erosion hazards upon the 
national flood insurance program; (2) a cost-benefit analysis 
of mapping erosion hazard areas; (3) the economic effects of 
charging actuarially based premium rates under the national 
flood insurance program for certain structures not constructed 
or substantially improved after a specified date; and (4) the 
appropriateness of existing requirements regarding the 
effective date and time of coverage under flood insurance 
contracts obtained through the national flood insurance 
program.
     Permits certain required land use and control 
measures to provide for the repair and restoration to 
predamaged conditions of specified damage- or loss-prone 
agricultural structures. Declares such structures ineligible 
for Federal disaster relief assistance. Requires the FEMA 
Director to report biennially on the effects of implementation 
of this Act upon the national flood insurance program.
     Prohibits granting Federal disaster relief 
assistance in a flood disaster area to certain persons 
obligated to obtain flood insurance but who have failed to do 
so.
     Department of Veterans Affairs and Housing and 
Urban Development and Independent Agencies Appropriations Act, 
1995, Public Law 103-327, September 28, 1994
     Effective for FY 1995, amends section 8 of the 
United States Housing Act of 1937 by permitting the Secretary 
of HUD to adjust the maximum monthly rent for a unit in a new 
construction, substantially rehabilitated, or moderate 
rehabilitation project above the level of the fair market rent 
for that unit, only to the extent that the owner of the project 
can demonstrate that the adjusted rent would not exceed the 
rent of an unassisted unit of the same quality, size, type and 
age in the same market area. Limitations are also placed on the 
maximum rent adjustment allowable for any unit occupied by the 
same family at the time of the last annual rent adjustment.
     Effective for FY 1995, amends section 6 and 
section 8 of the United States Housing Act of 1937 to give 
preference for occupancy in public housing or section 8 
projects to families that include one or more employed adult 
members.
     Effective for FY 1995, amends section 8 of the 
United States Housing Act of 1937 to permit the Secretary of 
HUD to pay all or part of the refinancing up-front costs of any 
project constructed or rehabilitated under the section 8 
program, and having a mortgage refinanced under section 
223(a)(7) or section 223(f) of the Housing Act, in order to 
lower the debt service payments of the project owner. These 
costs may be assumed by the Secretary only to the extent that 
they will be repaid from the reduced assistance payments that 
result from the refinancing.

  Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994

                (Public Law 103-328, September 29, 1994)

Interstate Banking and Branching
     Provides that the requirements of the Community 
Reinvestment Act of 1977 continue to apply to branches under 
its purview which have been acquired by a foreign bank.
     Amends the Community Reinvestment Act of 1977 to 
include within its purview evaluations of the interstate 
branches of regulated financial institutions.

                Truth in Lending Act Amendments of 1995

                (Public Law 104-29, September 30, 1995)

     Amends the Truth in Lending Act (TILA) to exclude 
from the determination of finance charge for any consumer 
credit transaction fees imposed by third party closing agents, 
including settlement agents, attorneys, escrow and title 
companies, that are neither required nor retained by the 
creditor (thereby exempting such fees from TILA disclosure 
requirements).
     Modifies the determination of finance charge to 
include borrower-paid mortgage broker fees.
     Exempts from the required computation of finance 
charge: (1) certain taxes on security instruments or evidences 
of indebtedness if they are a prerequisite for recordation; (2) 
fees for loan document preparation; and (3) appraisal fees 
related to pest infestations and flood hazard inspections.
     Instructs the Board of Governors of the Federal 
Reserve System to report to the Congress on statutory or 
regulatory changes necessary to: (1) ensure that finance 
charges more accurately reflect the cost of credit; and (2) 
address abusive refinancing practices intended to avoid 
rescission.
     Permits finance charge disclosures to vary within 
specified accuracy tolerance limits for certain consumer credit 
transactions secured by real property or a dwelling.
     Sets disclosure accuracy guidelines for per diem 
interest rate disclosures on consumer credit transactions.
     Shields a creditor or assignee, except in certain 
kinds of actions, from liability in connection with disclosures 
of: (1) certain fees, taxes, and charges; and (2) finance 
charges that fall within certain statutory tolerance limits.
     Restricts rescission liability arising from the 
form of written notice used by the creditor.
     Provides for damages ranging from $200 to $2,000 
for an individual consumer credit transaction not under an open 
end credit plan that is secured by real property or a dwelling.
     Modifies assignee liability guidelines to: (1) 
apply them to consumer credit transactions secured by real 
property; and (2) provide that a violation is apparent on the 
face of the disclosure statement if the disclosure does not use 
the format required by law.
     States that the servicer of a consumer obligation 
arising from a consumer credit transaction shall not be treated 
as an assignee of an obligation unless the servicer owns it.
     Identifies circumstances under which a consumer 
has a right to rescind a consumer credit transaction after the 
initiation of any judicial or nonjudicial foreclosure process 
on the consumer's primary dwelling securing the debt.

           Housing Opportunity Program Extension Act of 1996

                  (Public Law 104-120, March 28, 1996)

     Extends through FY 1996 section 8 (United States 
Housing Act of 1937) contract assistance authority for one-year 
renewals at current rent levels.
     Directs the Secretary of HUD to use specified 
funds for low-income housing preservation in accordance with 
certain provisions of H.R. 2099, as passed the House.
     Extends the home ownership program as an eligible 
community block grant program through FY 1996.
     Amends the Housing and Community Development Act 
of 1974 to increase the aggregate loan guarantee limit.
     Amends the Housing Act of 1949 to extend through 
FY 1996 the provisions of such Act relating to underserved 
areas set-asides, rural multifamily rental housing assistance, 
and rural rental housing funds for nonprofit entities.
     Enacts into law specified provisions of H.R. 1691, 
as passed the House, relating to: (1) authorization of loan 
guarantees through FY 1996 for low and moderate income rural 
multifamily rental housing; (2) limits on unpaid principal and 
interest guarantees, and on loan terms (up to 40 years); (3) 
borrower, housing, and lender eligibility; (4) foreclosure; (5) 
loan refinancing; (6) geographical targeting; (7) annual loan 
guarantee ceilings; and (8) program termination after September 
30, 1996.
     Amends the National Housing Act to extend the 
Federal Housing Administration home equity conversion mortgage 
program through FY 2000. Increases program mortgages to 50,000. 
Permits mortgages to be made for certain owner-occupied 
multifamily dwellings.
     Amends the Federal National Mortgage Association 
Charter Act to extend the Government National Mortgage 
Association (GNMA) guaranteed mortgage backed securities 
program through FY 1996.
     Amends the Housing and Community Development Act 
of 1992 to extend the risk-sharing and housing finance agency 
pilot programs through FY 1996.
     Amends the United States Housing Act of 1937 with 
regard to public housing security to: (1) extend security 
authority to ``off'' premises; (2) make criminal records of 
adult applicants or tenants available for screening or eviction 
purposes; and (3) make a tenant evicted for drug-related 
activity ineligible for housing assistance for three years 
unless such person successfully completes an approved 
rehabilitation program. Amends the United States Housing Act of 
1937 to prohibit or terminate occupancy in assisted housing and 
housing for the elderly and disabled to alcohol and drug 
abusers.
     Amends the United States Housing Act of 1937 to 
revise provisions permitting public housing agency (PHA) 
designation of housing for occupancy by only elderly families, 
only disabled families, or elderly and disabled families. 
Prohibits eviction of current tenants from designated projects. 
Requires PHA assistance to relocated tenants. Sets forth 
designation plan and HUD approval provisions. Authorizes FY 
1996 appropriations.
     Authorizes the Secretary to make grants to Habitat 
for Humanity International (headquartered in Americus, Georgia) 
and other national or regional organizations or consortia for 
construction of new, safe, and sanitary dwellings in the United 
States, including land acquisitions and infrastructure 
improvement.
     Authorizes the Secretary to use specified assisted 
housing funds for FY 1996 for: (1) self-help housing assistance 
under section 11 of this Act; (2) the national cities in 
schools community development program; and (3) capacity 
building through national community development initiative.
     States that this Act and its provisions shall be 
construed to have become effective on October 1, 1995.

 Departments of Veterans Affairs and Housing and Urban Development and 
             Independent Agencies Appropriations Act, 1997

                (Public Law 104-204, September 26, 1996)

     Extends the duration of specified provisions 
relating to: (1) public housing funding flexibility, under the 
Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1996; 
(2) one-for-one replacement of public and Indian housing, under 
specified Federal law; (3) public and assisted housing rents, 
income adjustments, and preferences, under the Balanced Budget 
Downpayment Act and the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1996; (4) applicability of such extensions 
to Indian housing authorities; (5) streamlining of section 8 
tenant-based assistance, under the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1996; (6) section 8 fair market 
rentals and delay in reissuance, under the Balanced Budget 
Downpayment Act; and (7) section 8 rent adjustments, under the 
United States Housing Act of 1937.
     Directs the HUD Secretary to establish fees for 
the cost of administering the certificate, voucher, and 
moderate rehabilitation programs, and other specified matters.
     Extends the single family assignment program 
through FY 1997.
     Requires that specified funds be available for 
activities relating to promotion and implementation of 
homeownership in targeted geographic areas.
     Reduces by $2 million in uncommitted authorization 
balances the limitation on the maximum payments that may be 
required in any fiscal year by all contracts with respect to 
rental and cooperative housing for lower income families.
     Requires that: (1) 50 percent of the amounts of 
budget authority (or of the cash amounts associated with such 
budget authority) that are recaptured from certain projects 
under the Stewart B. McKinney Homeless Assistance Amendments 
Act of 1988 be rescinded (or, in the case of cash, remitted to 
the Treasury); and (2) the remaining amounts be used by State 
housing finance agencies or local governments or housing 
agencies with projects approved by the HUD Secretary.
     Provides for specified section 8 contract renewal 
authority (with respect to certain expiring contracts for 
project-based assistance under the United States Housing Act of 
1937).
     Directs the HUD Secretary to administer a 
demonstration program with respect to multifamily projects: (1) 
whose owners agree to participate; (2) with section 8 rents, in 
the aggregate, in excess of 120 percent of the fair market rent 
of the market area in which the project is located; and (3) the 
mortgages of which are insured under the National Housing Act. 
Makes appropriations for such program, in addition to amounts 
made available from a similar program (hereby repealed) under 
the Departments of Veterans Affairs and Housing and Urban 
Development and Independent Agencies Appropriations Act, 1996.
     Amends the Cranston-Gonzalez National Affordable 
Housing Act to authorize the HUD Secretary to waive certain 
conditions on the use of funds with respect to Hawaiian home 
lands set aside under the Hawaiian Homes Commission Act, 1920.
     Authorizes the HUD Secretary to transfer certain 
assisted housing amounts to the Prevention of Resident 
Displacement account and the Housing Opportunities for Persons 
with AIDS (HOPWA) account.
     Directs the HUD Secretary to maintain all current 
requirements under specified regulations with respect to 
policies and procedures for the promulgation and issuance of 
rules, including the use of public participation in the 
rulemaking process.
     Amends the Housing and Community Development Act 
of 1974 to revise community development block grants 
requirements.
     Prohibits the use of any amounts made available 
under this Act during FY 1997 to investigate or prosecute under 
the Fair Housing Act any otherwise lawful activity engaged in 
by one or more persons, including the filing or maintaining of 
a nonfrivolous legal action, whose sole purpose is achieving or 
preventing action by a government official or entity, or a 
court of competent jurisdiction.
     Extends through FY 1998 certain authorities and 
limitations on the use of community development assistance for 
specified public services under the Housing and Community 
Development Act of 1974.
     Revises certain requirements for the program of 
rental and cooperative housing for lower income families under 
the National Housing Act.
     Authorizes certain corporations and agencies of 
HUD to make commitments without regard to fiscal year 
limitations as necessary to carry out provisions under the 
Government Corporation Control Act. Allows any collections by 
such corporations and agencies to be used for new loan or 
mortgage purchase commitments to the extent provided under this 
Act, with specified exceptions.
     Amends the National Housing Act with respect to 
Federal Housing Administration (FHA) mortgage insurance 
premiums to limit the premium payment to two percent of the 
original insured principal mortgage obligation for a first-time 
homebuyer who completes a program of counseling on 
homeownership responsibilities and financial management.
     Amends the National Housing Act to require the HUD 
Secretary, with respect to downpayments on FHA-insured loans, 
to consider as cash or its equivalent any amounts borrowed from 
a family members, subject to certain conditions.
     Amends the National Housing Act, with respect to 
mortgage insurance, to provide for calculation of downpayment 
(or insurable principal amount) mortgages originated in the 
States of Alaska or Hawaii.
     Amends the National Housing Act to authorize the 
HUD Secretary to delegate, to one or more mortgagees approved 
under the direct endorsement program, the authority to insure 
mortgages involving property upon which there is located a 
dwelling designed principally for occupancy by one to four 
families.
     Directs the Comptroller General to audit the 
operations of the Office of Federal Housing Enterprise 
Oversight to ensure that: (1) the office resources and contract 
authority are adequate; and (2) are being used appropriately to 
ensure that the Federal National Mortgage Association (Fannie 
Mae) and the Federal Home Loan Mortgage Corporation (Freddie 
Mac) are adequately capitalized and operating safely.

 Native American Housing Assistance and Self-Determination Act of 1996

                 (Public Law 104-330, October 26, 1996)

Block Grants and Grant Requirements
     Authorizes the Secretary of HUD, for each fiscal 
year, to make grants to a recipient on behalf of Indian tribes 
to carry out affordable housing activities. Prohibits the 
making of any grant on behalf of an Indian tribe unless the 
governing body of the locality within which any affordable 
housing to be assisted with grant amounts will be situated has 
entered into an agreement with the tribe recipient providing 
for local cooperation as required pursuant to this Act.
     Allows a grant recipient for an Indian tribe to 
receive a block grant only if the affordable housing assisted 
with grant amounts under this Act is exempt from all real and 
personal property taxes levied or imposed by any State, tribal, 
local, or other political subdivision, and the recipient makes 
annual user fee payments to compensate such governments for the 
costs of providing governmental services or payments in lieu of 
taxes to such taxing authority. Sets forth a rule concerning 
the effect of the failure of a grant recipient to exempt 
affordable housing from taxation.
     Limits grant amounts to be used only for 
affordable housing activities consistent with an approved 
Indian housing plan.
     Requires that an Indian tribe submit to the 
Secretary for each fiscal year an Indian housing plan for the 
tribe containing a mission statement, goals and objectives, and 
an overview of the activities planned.
     Allows a tribally designated housing entity to 
prepare and submit an Indian housing plan on behalf of an 
Indian tribe, but only if such plan contains a specified 
certification by the recognized tribal government of the grant 
beneficiary that such tribe has had an opportunity to review 
the plan or has authorized the submission of the plan by the 
housing authority.
     Authorizes the Secretary to establish separate 
requirements for plans for small Indian tribes and small 
tribally designated housing entities.
     Permits a recipient to retain program income under 
certain conditions.
     Allows the Secretary to release amounts for 
particular projects to tribes assuming all of the 
responsibility for environmental review pursuant to certain 
Federal laws.
     States that all regulations shall be issued 
according to a negotiated rulemaking procedure. Directs that 
the Secretary shall establish a negotiated rulemaking committee 
for the development of proposed regulations. Conditions that 
the Secretary shall adapt the negotiated rulemaking procedures 
under Federal law to the unique government-to-government 
relationship between the tribes and the United States, and 
ensure that the committee membership include only 
representatives of the Federal Government and of geographically 
diverse small, medium, and large Indian tribes. Prohibits the 
Secretary from precluding the participation of tribally 
designated housing entities should tribes elect to be 
represented by such entities. Affordable Housing Activities
     Sets forth the national objectives concerning 
affordable housing activities for Indian tribes. Limits 
assistance to low-income Indian families on Indian reservations 
and other Indian areas, with the exception of assistance for 
home ownership or loan guarantee activities. Directs that the 
Secretary shall establish limits on the amount of assistance 
for non-low-income families. Permits a recipient to provide 
housing or housing assistance provided through affordable 
housing activities for non-Indian families on Indian 
reservations or other Indian areas under certain conditions.
     Allows, through the Indian housing plan for an 
Indian tribe, preference to be given to Indian families who are 
members of such tribe or to other Indian families for housing 
or housing assistance provided through affordable housing 
activities.
     Defines eligible affordable housing activities, 
including crime prevention and safety activities.
     Permits the recipient for an Indian tribe to use 
grant amounts for affordable housing activities through certain 
investments, including leveraging of private investments.
     Sets forth a low-income requirement and provides 
for income targeting for affordable housing, except upon a 
foreclosure or other transfer (in lieu of foreclosure).
     Requires that the National Crime Information 
Center, police departments, and other law enforcement agencies 
shall provide information upon request to Indian tribes or 
tribally designated housing entities regarding the criminal 
conviction records of adult applicants or tenants for the 
purposes of applicant screening, lease enforcement, and 
eviction.

Allocation of Grant Amounts
     Authorizes the Secretary to establish by 
regulation, not later than the expiration of the 12-month 
period beginning on the date of enactment, a grant allocation 
formula to be based on factors that reflect the need of the 
Indian tribes and the Indian areas of the tribes for assistance 
for affordable housing. Sets forth requirements for full and 
partial funding in any fiscal year for the operation and 
modernization of public housing. Compliance, Audits, and 
Reports
     Sets forth provisions concerning remedies for 
noncompliance, including referral for civil action in lieu of, 
or in addition to, any action authorized by the Secretary.
     Directs that each recipient through binding 
contractual agreements with owners and otherwise, shall: (1) 
ensure long-term compliance, including through on-site 
inspection of housing; and (2) submit a report to the Secretary 
describing the conclusions of each review.
     Authorizes the Secretary to make, not less than 
annually, necessary or appropriate reviews and audits of 
recipients of assistance under this Act. Conditions that such 
reviews include, insofar as practicable, on-site visits by HUD 
employees.
     Provides for GAO audits of financial transactions 
of grant amounts.
     Mandates a certain report to the Congress by the 
Secretary.

Termination of Assistance for Indian Tribes Under Incorporated Programs
     Repeals title II (Assisted Housing for Indians and 
Alaska Natives) of the United States Housing Act of 1937. 
Repeals provisions within titles I (General Program of Assisted 
Housing) and III (Hope for Public and Indian Housing 
Homeownership) of the United States Housing Act of 1937 
relating to Indian housing assistance. Repeals the Indian 
Public Housing Early Childhood Development Demonstration 
Program.
     Terminates housing and rental assistance for 
Indian tribes, after FY 1997, under the United States Housing 
Act of 1937.
     Terminates housing assistance in FY 1998 for 
Indian tribes under the: (1) Youthbuild program; (2) HOME 
program; (3) emergency shelter grants program; (4) rural 
homelessness grant program; and (5) Innovative Homeless 
Initiatives Demonstration Program. Federal Guarantees for 

Financing for Tribal Housing Activities
     Authorizes the Secretary to make loan guarantees 
for the purposes of financing affordable housing activities and 
conditions that a guarantee may be used in obtaining financing 
only if the Indian tribe or housing entity has made efforts to 
obtain such financing elsewhere. Authorizes the Secretary to 
make grants to an Indian tribe to cover up to 30 percent of the 
net interest costs.
     Limits the aggregate principal amount the 
Secretary may guarantee for FY 1997 through 2001. Other Housing 
Assistance for Native Americans
     Amends the Housing and Community Development Act 
of 1992 to add Indian tribes to the current definition of 
eligible borrowers. Specifies that the authority to provide 
loan guarantees for Indian housing to those who could not 
otherwise acquire financing because of the unique legal status 
of Indian lands (currently, trust lands) shall include the 
authority to provide such guarantees because of the lack of 
access to private financial markets.
     Sets forth a requirement that the loan guarantees 
for eligible housing shall be used for housing under the 
jurisdiction of an Indian tribe for which an Indian housing 
plan has been submitted and approved.
     Revises the requirement respecting the option of a 
lender to obtain payment under a guarantee upon default without 
seeking foreclosure (or in any case in which a foreclosure 
proceeding initiated continues for more than one year).
     Modifies provisions respecting limitations on 
liquidation to change current reference to tribal allotted or 
trust land to restricted Indian land, and to permit the 
mortgagee or the Secretary (previously, only the Secretary) to 
pursue such liquidation. Extends, for FY 1997 through 2001, the 
Secretary's authority to guarantee loans for Indian housing of 
up to an aggregate limit.
     Revises the following definitions: (1) Indian 
area; (2) Indian housing authority; and (3) tribe or Indian 
tribe.
     Revises principal obligation loan guarantee limit 
provisions for Indian housing to prohibit a principal 
obligation from exceeding 97.75 percent of the appraised value 
of the property as of the date the loan is accepted for 
guarantee, or 98.75 percent, if the value of the property is 
$50,000 or less.
     Provides that the authority of the Secretary to 
enter into commitments to guarantee loans for Indian housing 
shall be effective for any fiscal year in amounts provided in 
appropriations Acts without regard to the fiscal year for which 
such amounts were appropriated. (Previously, was effective in 
amounts provided in appropriations Acts for such fiscal year.)
     Amends the Federal National Mortgage Association 
Charter Act to include loans guaranteed under section 184 of 
the Housing and Community Development Act of 1992 under the 
authority of the Government National Mortgage Association.
     Allows Indian owners, subject to the approval of 
the affected Indian tribe and the Secretary of the Interior, to 
lease for a 50-year term any restricted Indian lands for 
residential housing purposes.
     Authorizes appropriations for a national 
organization representing Native American housing interests for 
training and technical assistance to Indian housing authorities 
of such sums as may be necessary for FY 1997 through 2001.
     Amends the Public and Assisted Housing Drug 
Elimination Act of 1990 to replace the term ``Indian Housing 
Authorities'' with ``tribally designated housing entity''.

 Departments of Veterans Affairs and Housing and Urban Development and 
             Independent Agencies Appropriations Act, 1998

                 (Public Law 105-65, October 27, 1997)

     Extends certain provisions regarding contributions 
for low-income housing projects and the demolition, 
disposition, or conversion to home ownership of public housing.
     Amends the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1996 to extend provisions regarding the 
streamlining of section 8 tenant-based assistance.
     Amends the United States Housing Act of 1937 to 
extend specified provisions regarding section 8 rent 
adjustments through FY 1998.
     Amends the Balanced Budget Downpayment Act to 
extend provisions regarding: (1) public and assisted housing 
minimum rents, income adjustments, and preferences; and (2) 
delays in the reissuance of section 8 vouchers and 
certificates.
     Amends the National Housing Act to authorize HUD 
to make partial guaranteed mortgage loan payments for health 
care facilities.
     Amends the Cranston-Gonzalez National Affordable 
Housing Act to provide for allocations for affordable housing 
to local jurisdictions that receive initial formula allocations 
of less than $500,000.
     Requires the Secretary of HUD to make a grant for 
any State that: (1) received an allocation for FY 1997 under 
the AIDS Housing Opportunity Act; (2) is not otherwise eligible 
for such allocation for FY 1998 because the State does not have 
the required number of AIDS cases; and (3) would meet such 
requirement if the cases in the metropolitan statistical area 
(MSA) for any city within the State (which was not eligible in 
FY 1997 but is eligible for FY 1998) were considered to be 
cases outside of such MSAs.
     Amends the National Flood Insurance Act of 1968 to 
extend through FY 1998: (1) a certain ceiling on obligations 
issued under the national flood insurance program; (2) the 
authority for new flood insurance contracts; and (3) the 
authorization of appropriations for certain studies.
     Requires the Director of FEMA to promulgate a 
methodology for collection of fees applicable to persons 
subject to FEMA's radiological emergency preparedness 
regulations. Permits collection of such fees only during FY 
1998.
     Authorizes certain corporations and agencies of 
HUD to make commitments without regard to fiscal year 
limitations as necessary to carry out provisions under the 
Government Corporation Control Act. Allows any collections by 
such corporations and agencies to be used for new loan or 
mortgage purchase commitments to the extent provided under this 
Act, with specified exceptions.

Multifamily Assisted Housing Reform and Affordability Act of 1997: FHA-
        Insured Multifamily Housing Mortgage and Housing Assistance 
        Restructuring
     Directs the Secretary of HUD to enter into 
agreements with participating administrative entities (with 
preference given to State or local housing finance agencies) to 
develop and implement mortgage restructuring and rental 
assistance plans for FHA-insured multifamily housing mortgages 
in order to: (1) reduce expiring section 8 contracts costs; (2) 
address troubled projects; and (3) correct management and 
ownership deficiencies.
     Includes two-tiered mortgage restructuring among 
plan incentives.
     Terminates program authority as of a specified 
date.
     Sets forth authorities regarding renewal of 
certain section 8 contracts.
Miscellaneous Provisions
     Amends the National Housing Act to authorize the 
Secretary to make grants for the capital costs of 
rehabilitation to owners of specified insured or section 8 
projects, subject to certain conditions.
     Requires the Comptroller General to report to the 
Congress on section 8 assistance for multifamily housing 
projects, including an analysis of how State and local housing 
finance agencies have benefited from rental assistance and the 
effectiveness of project oversight. Enforcement Provisions
     Directs the Secretary to issue implementing 
regulations.
     Amends the Social Security Act to make permanent 
provisions authorizing disclosure by States of certain income 
and unemployment records of housing assistance participants or 
applicants to HUD. Makes a conforming amendment to Internal 
Revenue Code provisions relating to tax return information of 
such individuals.
     FHA Single Family and Multifamily Housing--Amends 
the National Housing Act to expand HUD authorities with respect 
to: (1) lender sanctions; (2) equity skimming; and (3) civil 
money penalties.
     FHA Multifamily Provisions--Amends the National 
Housing Act and the Housing Act of 1937 to expand multifamily 
housing-related civil money penalties.
     Amends the Housing and Community Development Act 
of 1987 to extend the double damages remedy. Office of 
Multifamily Housing Assistance Restructuring
     Establishes the Office of Multifamily Housing 
Assistance Restructuring within HUD.
     Terminates subtitle A (except for section 8 
contract renewal provisions) and this subtitle on October 1, 
2001. Homeowners Protection Act of 1998, Public Law 105-216, 
July 29, 1998
     Prescribes guidelines for mandatory termination of 
private mortgage insurance (PMI) for a residential mortgage 
when the principal balance is first scheduled to reach or 
actually reaches 80 percent of the original value of the 
property securing the mortgage loan, including: (1) a 
mortgagor's written cancellation request; (2) automatic 
termination; (3) final termination; (4) no further payments; 
and (5) return of unearned premiums. Cites exceptions for high 
risk loans.
     Requires the Comptroller General to detail for the 
Congress the volume and characteristics of residential 
mortgages and residential mortgage transactions that are exempt 
from the borrower cancellation and automatic termination 
requirements of this Act.
     Prescribes disclosure requirements for PMI 
amortization schedules, including for: (1) new mortgages at the 
time of transaction; (2) high-risk mortgages; (3) mortgage 
transactions entered into prior to enactment of this Act; (4) 
annual written updates; (5) PMI cancellation or termination; 
and (6) lender paid mortgage insurance.
     Prohibits fees for such disclosures.
     Subjects any servicer, mortgagee, or mortgage 
insurer in violation of this Act to civil liability for damages 
incurred by each mortgagor to whom the violation relates.
     Preempts: (1) State law governing PMI (except 
protected State laws that are not inconsistent with this Act); 
and (2) servicing agreements entered into by Federal National 
Mortgage Association, the Federal Home Loan Mortgage 
Corporation, or any private investor or note holder.
     Declares that a protected State law shall not be 
construed as inconsistent with this Act if it requires: (1) 
termination of PMI or other mortgage guaranty insurance at an 
earlier date or when a lower mortgage loan principal balance is 
achieved; or (2) disclosure of information that provides more 
information than required by this Act, or more often or at a 
date earlier than required by this Act.
     Prescribes enforcement guidelines for Federal 
banking agencies.
     States that this Act does not preclude an 
agreement between a mortgagor and mortgage holder to cancel or 
terminate a requirement for PMI in connection with a 
residential mortgage transaction before the cancellation or 
termination date established by this Act for the mortgage.
     Abolishes the Thrift Depositor Protection 
Oversight Board. Provides for the continuation of Resolution 
Funding Corporation orders, resolutions, determinations, and 
regulations. Transfers to the Secretary of the Treasury the 
authority of the Thrift Depositor Protection Oversight Board, 
and the duties of the Resolution Funding Corporation.
     Amends the Resolution Trust Corporation Completion 
Act to remove the Chairperson of the Thrift Depositor 
Protection Oversight Board from mandatory membership on the 
Affordable Housing Advisory Board. Repeals the directive that 
such Board conduct its meetings where substantial residential 
property assets of the Federal Deposit Insurance Corporation or 
the Resolution Trust Corporation are located.

 Departments of Veterans Affairs and Housing and Urban Development and 
             Independent Agencies Appropriations Act, 1999

                 (Public Law 105-276, October 21, 1998)

     Amends the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1996 to extend a provision regarding 
authorized uses of assistance, including the improvement or 
replacement of housing, by public housing agencies.
     Amends the Federal Home Loan Mortgage Corporation 
Act to authorize the Federal Home Loan Mortgage Corporation to 
purchase a mortgage secured by a property comprised of 
multifamily dwelling units where the principal balance of the 
mortgage exceeds 80 percent of the value of the property if the 
mortgage is subject to certain default loss protection.
     Amends the Housing and Community Development Act 
of 1974 to make Brownfields an eligible activity under the 
community development block grant program.
     Extends the authority of HUD flexibility to make 
rehabilitation grants and loans in disposing of HUD-owned and 
HUD-held properties.
     Requires the Secretary of HUD to make a grant for 
any State that: (1) received an allocation in a prior fiscal 
year under the AIDS Housing Opportunity Act; and (2) is not 
otherwise eligible for such allocation for FY 1999 because the 
areas in the State outside of the metropolitan statistical 
areas that qualify do not have the required number of AIDS 
cases.
     Amends the AIDS Housing Opportunity Act by making 
changes in the HOPWA funding formula to correct anomalies that 
result in loss of funds for a State when the incidence of AIDS 
in a large city within that State increases. This provision 
applies to funds allocated only for FY 1999.
     Amends the Department of Veterans Affairs and 
Housing and Urban Development and Independent Agencies 
Appropriations Act of 1996 to permit public housing agencies to 
draw down capital grant funds on a construction-related 
schedule and to deposit the funds in an escrow account to serve 
as collateral for bonds for construction and rehabilitation.
     Amends the United States Housing Act of 1937 to 
set the monthly assistance payment for families being admitted 
to the voucher program who remain in the same unit or complex 
where rent does not exceed the payment standard at the amount 
by which rent exceeds the greater of 30 percent of the family's 
monthly adjusted income or ten percent of the family's monthly 
income.
     Authorizes the Secretary of HUD to revise the 
performance funding system used for making annual payments for 
operation of low-income housing to take into account equity 
among public housing agencies and include incentives for sound 
management.
     Amends the Housing and Community Development Act 
of 1992 to extend the Secretary of HUD's authority to enter 
into certain risk-sharing agreements to determine Federal 
credit enhancements for loans for affordable multifamily 
housing. Increases the number of units to which those 
agreements may apply in FY 1999.
     Amends the National Housing Act to: (1) extend 
certain conditions on obtaining FHA mortgage insurance with 
regard to calculations of downpayment and makes such 
calculations applicable to all mortgages (currently, those 
originating in Alaska and Hawaii); and (2) raise the limit on 
the amount of principal obligations involved in order to be 
eligible for such insurance.
     Deems the term ``States'' to include Indian tribes 
and Guam, the Northern Mariana Islands, the Virgin Islands, and 
American Samoa for purposes of eligibility for funding under 
community development block grant provisions of the 1998 
Supplemental Appropriations and Rescissions Act.
     Authorizes eligible low-income housing project 
owners to: (1) prepay mortgages on such projects; and (2) 
request voluntary termination of a mortgage insurance contract 
with respect to such a project, notwithstanding certain 
requirements under the National Housing Act. Permits mortgage 
prepayment or contract termination only if: (1) such prepayment 
or termination is consistent with the terms of the mortgage on, 
or insurance contract for, the project; (2) the owner agrees 
not to increase rent charges for any project dwelling during 
the 60-day period beginning on the prepayment or termination; 
and (3) the owner provides notice of intent to prepay or 
terminate within a certain time period, with specified 
exceptions
     Amends the Public and Assisted Housing Drug 
Elimination Act of 1990 to make Indian tribes eligible to 
receive grants for elimination of drug-related crime in public 
housing.
     Authorizes HUD to provide information to, and buy 
information from, nationwide, multifamily housing loan and 
property data services.
     Amends the National Housing Act to authorize the 
Secretary of HUD to conduct certain multifamily mortgage 
auctions through December 31, 2002.
     Requires the Secretary of HUD to report annually 
to the Congress on a plan to address each material weakness, 
reportable condition, and noncompliance with an applicable law 
or regulation identified in the FHA's most recent audited 
financial statement.
     Amends the National Housing Act by requiring 
disclosure to consumers about the cost of FHA-insured mortgages 
as compared to commercially-insured mortgages.
     Amends the National Housing Act of permit owners 
of certain section 236 projects to retain some of the excess 
rents collected, rather than deposit the amounts into the 
Secretary's reserve fund.
     Amends the National Housing Act by increasing the 
FHA single-family loan limits, allowing uniformity within 
metropolitan statistical areas.
     Amends the United States Housing Act of 1937 to 
require public housing agencies to establish standards for 
occupancy in public housing dwellings and assistance under 
section 8 that: (1) permanently prohibit occupancy by, and 
section 8 assistance for, persons who have been convicted of 
producing methamphetamine on the premises in violation of 
Federal or State law; and (2) immediately and permanently 
terminate the tenancy of, and such assistance for, such 
persons.

Quality Housing and Work Responsibility Act of 1998
     Declares that housing policy should promote decent 
and affordable housing through public and private sector 
efforts.
     Requires, with specified exceptions, tenant 
membership on public housing agency (PHA) board of directors.
     Amends the Housing Act of 1937 (Act) to define 
specified terms.
     Establishes, with hardship exceptions, minimum 
rents of not more than $50 per month for specified tenants.
     Revises adjusted income determinations.
     Disallows, for 12 months with a subsequent phase-
in, from public housing rent determinations income earned by a 
family member previously unemployed for at least one year.
     Authorizes PHAs not conducting a family self-
sufficiency program to do so. Terminates the program expansion 
requirement.
     Prohibits use of HUD funds to indemnify 
contractors against judgments associated with intellectual 
property infringement.
     Requires PHAs to submit annual and five-year plans 
to the Secretary. Requires annual plans to contain provisions 
concerning: (1) local housing needs; (2) PHA financial 
resources; (3) admissions policies; (4) rent determinations; 
(5) operations and management; (6) grievance procedures; (7) 
capital improvements; (8) demolition and disposition; (9) 
designation of housing for elderly and disabled families; (10) 
public housing conversion; (11) home ownership; (12) economic 
self-sufficiency and cooperation with welfare and other 
agencies; (13) safety and crime prevention; (14) pets; and (15) 
annual certification and audits. Authorizes streamlined plans 
for PHAs that: (1) are high performing; (2) have less than 250 
units and are not designated as troubled; and (3) do not own or 
operate public housing.
     Requires: (1) plan submission to HUD within 75 
days of the start of a PHA's fiscal year; and (2) General 
Accounting Office audit and review of a representative plan 
sampling.
     Requires public housing tenants (other than the 
elderly, disabled, employed, or otherwise work-exempt) to 
participate at least eight hours monthly in a community service 
or self- sufficiency program.
     Prohibits low-income family concentration and 
provides for mixed-income housing.
     Eliminates Federal preferences for public housing 
admissions. Expresses the sense of the Congress that PHAs 
should consider preferences for victims of domestic violence.
     Authorizes PHAs to form consortia and joint 
ventures and operate subsidiaries. Eliminates certain energy 
conservation requirements.
     Authorizes the Secretary to permit PHAs to 
mortgage or otherwise grant a security interest in public 
housing projects.
     Directs the Secretary to develop a mental health 
services plan for public housing residents.

Public Housing: Operating and Capital Assistance
     Amends the Act to consolidate public housing 
assistance (other than section 8 assistance) into a Capital 
Fund and an Operating Fund. (Establishes such Funds.) Directs 
the Secretary to establish assistance formulae.
     Authorizes: (1) PHAs to use not more than 20 
percent of capital funds for operations as of FY 2000; and (2) 
full spending flexibility for PHAs with less than 250 units. 
Limits, with exceptions, fund use for new construction. 
Obligates emergency reserve funding.
     Revises the definition of ``development costs'' 
with respect to public housing.
     Sets forth additional sanctions for improper PHA 
fund use.
     Repeals modernization fund authority. Admissions 
and Occupancy Requirements
     Amends the Act to permit tenants to annually 
choose either a flat or income-based rent.
     Authorizes PHAs to: (1) permit tenancy for police 
officers and over-income families not otherwise eligible; (2) 
establish site-based waiting lists; and (3) permit reasonable 
pet ownership. Management, Homeownership, and Demolition and 

Disposition
     Amends the Act to repeal the contract requirement 
that excess funds be used to reduce subsequent annual 
contributions.
     Provides that public housing contracts shall 
require PHAs to maintain housing quality standards. Directs the 
Secretary to establish quality standards.
     Revises public housing demolition and disposition 
provisions. Requires a PHA to certify: (1) in the case of a 
demolition, that the project is obsolete and not cost effective 
to rehabilitate; and (2) in the case of a disposition, project 
retention is not in the best interests of the tenants or the 
PHA. Authorizes HUD disapproval of a demolition or disposition 
application under specified circumstances. Provides for 
resident organization purchase opportunity in a proposed 
disposition. Eliminates the one-for-one replacement 
requirement. Authorizes replacement units to be built on the 
demolition site only if fewer than the original number of 
demolished units are built.
     Provides for direct provision of operating and 
capital assistance to resident management corporations that 
assume primary housing management responsibility.
     Authorizes PHAs to convert public housing to 
vouchers. Sets forth related assessment and plan requirements. 
Eliminates family investment center authority.
     Authorizes upon tenant request, and sets forth the 
conditions for, transfer of a distressed housing project from a 
PHA to a specified management entity.
     Authorizes the Secretary to make grants through 
September 30, 2002, to certain PHAs for improving severely 
distressed public housing. Sets forth eligible activity and 
related provisions.
     Authorizes PHAs to develop homeownership programs 
to sell public housing units to: (1) residents or other low-
income buyers; or (2) entities for resale to such buyers. 
Provides for: (1) resident right of first refusal; and (2) 
rental and relocation assistance to nonpurchasing tenants. Sets 
forth resale limitations.
     Requires the conversion of specified distressed 
public housing to tenant-based assistance. Sets forth 
conversion requirements.
     Authorizes the Secretary to make matching grants 
to PHAs or resident organizations for supportive services and 
resident empowerment activities to assist resident economic 
self-sufficiency.
     Authorizes PHAs to own or operate mixed-finance 
projects. Section 8 Rental and Homeownership Assistance
     Amends the Act to merge the section 8 voucher and 
certificate programs into a single voucher program. Sets forth 
program provisions, including: (1) a payment standard and 
discretionary set-aside; (2) monthly assistance amounts; (3) 
tenant rent contribution and rent cap; (4) family contribution, 
including local preferences; (5) annual family income review; 
(6) one-year (or less if PHA-approved) lease provisions; (7) 
PHA unit inspections; (8) vacated units; (9) reasonable market 
rents; (10) manufactured housing eligibility; (11) 
homeownership option; and (12) witness relocation 
participation.
     Amends the definition of ``public housing agency'' 
for section 8 purposes to include: (1) consortia of PHAs; (2) 
other public or private nonprofit entities administering 
tenant-based assistance pursuant to a contract with the 
Secretary or a PHA; or (3) a PHA serving more than one local 
jurisdiction.
     Revises fee provisions.
     Authorizes section 8 tenant eligibility for law 
enforcement and security personnel not otherwise eligible.
     Revises and makes permanent tenant notification 
and endless lease provisions.
     Makes conforming amendments with respect to such 
voucher program to the: (1) Cranston-Gonzalez National 
Affordable Housing Act (grants for community residences and 
services); (2) Housing and Community Development Act of 1987 
(displaced resident assistance); (3) Housing Act of 1949 (rural 
housing preservation grants); (4) Housing and Community 
Development Act of 1992 (fair housing demonstration); and (5) 
Housing and Community Development Amendments of 1978 (troubled 
multifamily housing assistance).
     Requires section 8 contracts to permit law 
enforcement access to project common areas.
     Provides for voucher portability.
     Provides for a section 8 home ownership option. 
Authorizes the Secretary to carry out a home ownership 
demonstration program.
     Directs the Secretary to carry out a manufactured 
housing demonstration program for FY 1999 through 2001.
     Authorizes section 8 FY 1999 through 2003 
appropriations for: (1) incremental dwelling units; (2) 
relocation units for demolished housing; (3) resident 
relocation; (4) conversion of family self-sufficiency housing 
to section 8 housing; (5) family unification plan; (6) witness 
relocation; (7) nonelderly disabled families; and (8) housing 
vouchers for the homeless and portability changes of residence.
     Authorizes appropriations for disabled family 
assistance. Home Rule Flexible Grant Demonstration
     Amends the Act to direct the Secretary to carry 
out a five-year home rule flexible grant demonstration program 
that authorizes local jurisdictions to receive and combine 
housing assistance and enter into performance contracts to: (1) 
provide housing assistance that facilitates employment 
transition of low-income families, (2) provide permanent 
housing for the homeless; and (3) increase low-income family 
home ownership. Accountability and Oversight of Public Housing 
Agencies
     Directs the Secretary to provide for a study of 
alternative methods for evaluating PHAs and other providers of 
Federal housing assistance.
     Amends the Act to revise public housing management 
assessment criteria.
     Revises HUD powers concerning troubled PHAs to 
permit the Secretary to: (1) take possession of a troubled PHA, 
including any of its projects or functions, or provide for 
alternative management, including section 8 housing; and (2) 
grant such PHA a two- part probationary period to demonstrate 
satisfactory improvement, and , upon inability to make such 
improvement, either take over the PHA or appoint a receiver to 
do so.
     Amends the Cranston-Gonzalez Affordable Housing 
Act to require the comprehensive housing affordability strategy 
(CHAS) for a State or unit of general local government in which 
a troubled PHA is located to include a performance improvement 
plan for such PHA. Safety and Security in Public and Assisted 
Housing
     Amends the Act to include felonies among the 
activities for which an expedited eviction grievance procedure 
shall apply.
     Sets forth provisions concerning the availability 
of tenant screening and eviction information. Provides for 
limited use confidentiality.
     Authorizes: (1) a PHA or owner of assisted housing 
to require adult household members to sign a release permitting 
access to certain law enforcement information; and (2) a PHA to 
require household members to sign a release permitting access 
to drug abuse treatment information.
     Makes a person evicted from federally assisted 
housing because of drug-related activity ineligible for such 
housing for three years unless he or she successfully completes 
a drug rehabilitation program.
     Requires a PHA or owner of federally assisted 
housing to establish admission and eviction standards for a 
person: (1) using a controlled substance; or (2) reasonably 
believed to be using a controlled substance or abusing alcohol 
in a way that would interfere with other tenants' safety, 
health, or peaceful enjoyment of the premises.
     Prohibits public housing admission for any 
household with a member who is subject to lifetime registration 
under a State sex offender registration program. Directs PHAs 
to conduct related applicant information checks. Repeals and 
Related Provisions
     Directs the Secretary to annually report on the 
impact of this Act upon resident demographics, PHA viability, 
and rent policies.
     Eliminates specified programs and studies under 
the following Acts: (1) Cranston-Gonzalez National Affordable 
Housing Act (public housing rent waivers for police, Indian 
housing childhood development, public housing one-stop 
perinatal services demonstration, public housing mixed-income 
new communities demonstration, public housing energy efficiency 
demonstration, and public and assisted housing youth sports 
programs); (2) Housing and Community Development Act of 1987 
(public housing comprehensive transition demonstration); (3) 
Housing and Community Development Act of 1992 (fair housing 
report); (4) Housing and Community Development Amendments of 
1981 (payment for development managers); (5) Housing and Urban-
Rural Recovery Act of 1983 (public housing childhood 
development); (6) Housing and Community Development Act of 1992 
(Omaha home ownership demonstration); (7) National Housing Act 
and the Emergency Home Finance Act of 1970 (multifamily 
financing); and (8) Housing and Community Development Act of 
1974 (special projects for elderly or handicapped families).
     Expresses the sense of the Congress that, to the 
greatest extent possible, equipment and services purchased 
under this Act should be American made.
     Directs the Comptroller General to conduct a study 
of housing assistance program costs.
     Public and Assisted Housing Drug Elimination 
Program Amendments of 1998--Amends the Anti-Drug Abuse Act of 
1988 to make public housing drug elimination grants available: 
(1) to recipients of assistance under the Native Americans 
Housing Assistance and Self- Determination Act of 1996 
(currently available to tribally designated housing entities); 
(2) to PHA consortia; (3) for violent crime elimination; and 
(4) for sports programs.
     Authorizes: (1) FY 1999 through 2003 
appropriations; and (2) set-asides for PHAs with serious crime 
problems, federally assisted low- income housing, and program 
oversight.
     Directs the Secretary to review drug elimination 
program security contracts with respect to hiring 
discrimination, emergency contracting procedures, and contract 
effectiveness.
     Amends the Housing and Community Development Act 
of 1974 to prohibit assistance to be used for employment 
relocation.
     Prohibits the Secretary from establishing a 
national occupancy standard.
     Directs the Secretary , for at least ten 
metropolitan or urban county jurisdictions, to provide certain 
income eligibility exceptions for community block grant and 
HOME investment partnership purposes.
     Directs the Inspector General of HUD to report on 
HUD-owned single family and multifamily home occupancy and 
conditions.
     Amends the Housing and Community Development Act 
of 1980, as amended by the Illegal Immigration Reform and 
Immigrant Responsibility Act of 1996, with respect to the use 
of assisted housing by aliens.
     Amends the National Housing Act to increase (to 
150,000) the aggregate number of mortgages under the senior 
home owners equity conversion mortgage demonstration program. 
Obligates specified funding for FY 2000 through 2003 for equity 
conversion counseling and consumer education. Requires 
disclosure of costs which are necessary for such mortgage and 
those which are related but not required to obtain the 
mortgage.
     Amends the Housing and Urban Development Act of 
1968 to: (1) extend emergency home ownership counseling 
authority through FY 2000; and (2) require notification of 
delinquency on veterans home loans.
     Makes specified technical changes to the Native 
American Housing Assistance and Self-Determination Act of 1996, 
the United States Housing Act of 1937, the Housing and 
Community Development Act of 1992, the Cranston-Gonzalez 
National Affordable Housing Act, and the Balanced Budget 
Downpayment Act.
     Amends the Native American Housing Assistance and 
Self- Determination Act of 1996 concerning: (1) the definition 
of ``Indian area''; (2) block grant tax exemption; (3) civil 
rights applicability; (4) low-income requirements; (5) tenant 
selection; (6) environmental review under the Indian housing 
loan guarantee program; (7) public availability of information; 
and (8) local cooperation agreements.
     Transfers specified recaptured funds to the 
National Cities in Schools Community Development Program 
account.
     Amends the Housing and Community Development 
Amendments of 1978 to provide for tenant participation in 
multifamily housing projects.
     Amends the Manufactured Housing Construction and 
Safety Standards Act of 1974 to exempt self-propelled 
recreational vehicles from the definition of ``manufactured 
home.''
     Amends the Cranston-Gonzalez National Affordable 
Act concerning home ownership low-income and affordable housing 
determinations under the HOME investment partnerships program.
     Amends the Housing Act of 1949 to make permanent: 
(1) set-aside authority for targeted rural underserved areas 
and colonias, and for rural rental housing funds; (2) loan 
authority for housing and related facilities for elderly 
persons and families; (3) set-aside authority for nonprofit 
entities; and (4) loan guarantee authority for multifamily 
rental housing (prohibits guarantee denial due to tax-exempt 
financing).
     Makes a nonprofit limited partnership in which the 
general partner is a nonprofit entity an eligible farm labor 
housing insured lender.
     Authorizes conversion of rental assistance 
payments to operating subsidies for migrant farmworker 
projects.
     Amends the National Flood Insurance Act of 1968 to 
extend flood insurance and emergency implementation authorities 
through FY 2001.
     Amends the Housing Opportunity Program Extension 
Act of 1996 to authorize FY 1999 and 2000 appropriations for 
self-help housing providers. Provides for consortia awards 
through a national grant competition. Eliminates the Habitat 
for Humanity International as a named grant recipient.
     Amends the National Housing Act concerning special 
mortgage insurance assistance to: (1) increase the limit on 
covered principal obligations; (2) increase the allowable 
percentage of rent to income; (3) limit principal obligations 
to not more than 90 percent of the property's value; and (4) 
subject obligations to a capped premium fee.
     Authorizes the Secretary to approve otherwise 
qualified HOPE VI applications without regard to the demolition 
requirement. FHA Property Disposition Reform
     Amends the National Housing Act to revise single 
family claims procedures.
     Authorizes the Secretary to pay insurance benefits 
upon: (1) mortgage assignment; (2) property title conveyance; 
(3) at fair market price preforeclosure sale; or (4) at fair 
market price foreclosure. Authorizes the Secretary to: (1) 
permit the mortgagee to transfer title to HUD directly from the 
mortgagor; (2) pay for loss mitigation; (3) permit the 
assigning mortgagee to continue servicing the mortgage; and (4) 
sell acquired real and personal property.
     Sets forth provisions with respect to: (1) claims 
procedures; (2) insurance benefits; and (3) premium 
termination.
     Directs the Secretary to carry out a program of 
disposition of HUD-held single family properties in 
revitalization areas. Requires for such designation that an 
area: (1) be a very low-income area; (2) have a high 
concentration of eligible properties; or (3) have a low home 
ownership rate.
     Provides purchaser preference (including 
discounts) for nonprofit entities and local governments.
     Sets forth purchase and sale agreement provisions.

             1999 Emergency Supplemental Appropriations Act

                   (Public Law 106-31, May 21, 1999)

     Increases the limitation on commitments to 
guarantee loans with respect to the Federal Housing 
Administration-Mutual Mortgage Insurance Program Account and 
the Government National Mortgage Association's Guarantees of 
Mortgage-Backed Securities Loan Guarantee Program Account.
     Revises and makes technical corrections to various 
Acts, including the Stewart B. McKinney Homeless Assistance 
Act.

 Departments of Veterans Affairs and Housing and Urban Development and 
             Independent Agencies Appropriations Act, 2000

                 (Public Law 106-74, October 20, 1999)

     Amends the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1999 to extend certain provisions regarding 
grants to otherwise ineligible States for housing for persons 
with AIDS.
     Amends the United States Housing Act of 1937 to 
authorize the Secretary of HUD to establish income ceilings, 
with respect to eligibility for public housing or project-based 
section 8 assistance, that are higher or lower than 30 percent 
of the area median income based on findings that such 
variations are necessary because of unusually high or low 
family incomes.
     Establishes the Millennial Housing Commission to 
study and report to specified congressional committees on: (1) 
the importance of housing, particularly affordable housing, to 
U.S. infrastructure; (2) possible methods for increasing the 
role of the private sector in providing affordable housing; and 
(3) whether existing HUD programs work in conjunction with one 
another to provide better housing opportunities for families, 
neighborhoods, and communities and how such programs can be 
improved with respect to such purpose.
     Terminates the Commission on June 30, 2002.
     Amends provisions of the National Housing Act 
regarding payments of claims on defaulted mortgages with 
respect to multifamily housing units and health facilities to 
allow full (in addition to partial) payment of claims under one 
or more mortgage insurance contracts in connection with certain 
mortgage restructurings.
     Amends the United States Housing Act of 1937 to 
direct owners responsible for determining a participant's 
eligibility or level of benefits to require families receiving 
certain HUD family income matching information to disclose such 
information. Includes families who receive such information and 
dwell in units receiving certain project-based assistance 
within the list of families subject to the disclosure 
requirement.
     Amends the Department of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1998, to permit t Secretary of HUD to use 
risk-shared financing for any mortgage restructuring, 
rehabilitation refinancing or debt refinancing included as part 
of a mortgage restructuring and rental assistance sufficiency 
plan, if the terms and conditions are considered to be the best 
available financing in terms of financial savings to the FHA 
insurance funds, and will result in reduced risk of loss to the 
Federal Government.
     Requires the Secretary of HUD to transfer the 
administration of the Small Cities component of the Community 
Development Block Grants program for all funds allocated for 
the State of New York under a specified provision of the 
Housing and Community Development Act of 1974 to the State of 
New York, to be administered by the Governor.
     Extends the availability of certain grants made 
available under an economic development initiative pursuant to 
the Housing and Community Development Act of 1974 through FY 
2000.
     Amends the United States Housing Act of 1937 to 
authorize the Secretary of HUD to reuse any budget authority 
recaptured on account of expiration of a housing assistance 
payments contract. Removes: (1) a condition that applies such 
authority only to contracts other than those for tenant-based 
assistance; and (2) a provision that makes such authority 
effective only for actions initiated by the Secretary on or 
before September 30, 1995.
Preserving Affordable Housing for Senior Citizens and Families into the 
        21st Century Act
     Amends the Housing Act of 1959 to authorize FY 
2000 appropriations for supportive housing for the elderly.
     Amends the Cranston-Gonzalez National Affordable 
Housing Act to authorize FY 2000 appropriations for supportive 
housing for persons with disabilities.
     Authorizes FY 2000 appropriations for: (1) grants 
for service coordinators for elderly and disabled residents of 
certain federally assisted multifamily housing; and (2) 
contracts for congregate services for certain federally 
assisted housing.
     Authorizes FY 2000 appropriations for renewal of 
grants made in prior fiscal years for service coordinators and 
congregate services for the elderly and disabled in public 
housing.
     Expanding Housing Opportunities for the Elderly 
and Persons With Disabilities
     Requires the Secretary of HUD to analyze, and 
report to Congress on, the net sponsors of projects assisted 
under section 202 (supportive services for the elderly) of the 
Housing Act of 1959 (as in effect prior to enactment of the 
Cranston-Gonzalez National Affordable Housing Act) together 
with a reduction in the amount of Section 8 or other rental 
assistance provided to such a project.
     Amends the Housing Act of 1959 to authorize the 
Secretary to make grants for capital repairs of elderly housing 
projects or their conversion to assisted living facilities. 
Sets forth project eligibility and selection criteria, 
including inclusion of up to three unused or underused 
commercial properties. Authorizes FY 2000 appropriations.
     Amends the United States Housing Act of 1937 to 
authorize a recipient of section to rental costs.
     Amends the Housing Act of 1959 to make multifamily 
projects that have converted elderly housing units to assisted 
living facilities eligible for section 8 project based 
assistance in the same manner as if they had not made such 
conversions. Sets forth rent calculation provisions.
     Amends the Cranston-Gonzalez National Affordable 
Housing Act to provide that not more than 25 percent of fiscal 
year project rental assistance or capital advances for 
supportive housing for persons with disabilities may go to 
projects with more than 24 units.
     Directs the Secretary to conduct a study and 
report to Congress with respect to: (1) prior assistance 
provided to such projects; and (2) per-unit costs and benefits 
of specified project sizes assisted under the supportive 
housing for persons with disabilities program and the section 
202 program under the Housing Act of 1959.
     Establishes the Commission on Affordable Housing 
and Health Care Facility Needs in the 21st Century. Directs the 
Commission to conduct a study and report to specified 
congressional committees on senior citizens' future affordable 
housing, assisted living, and health facility needs, and public 
and private sector capacities to meet such needs. Terminates 
the Commission as of June 30, 2002.
     Renewal of Expiring Rental Assistance Contracts 
and Protection of Residents
     Amends the Multifamily Assisted Housing Reform and 
Affordability Act of 1997, with respect to expiring project-
based section 8 contracts, to base renewal rates upon 
comparable market rates. Provides for exception renewal rates 
based on: (1) the lower of adjusted existing rents or budget-
based rents for certain projects exempt from mortgage 
restructuring; and (2) the lesser of adjusted existing rents, 
fair market rents, or comparable market rents for certain 
projects under the moderate rehabilitation program.
     Provides enhanced section 8 vouchers for residents 
of covered projects with expiring contracts. Authorizes FY 2000 
through 2004 appropriations.
     Provides for continuation of expiring section 8 
contract benefits to owners under specified conditions.
     Prohibits State or local limits on allowable 
project renewal distributions to owners, with exceptions.
     Amends the National Housing Act with respect to 
the rental and cooperative housing program to authorize: (1) 
interest reduction payments for project mortgage refinancing; 
and (2) project owners to retain excess income. Revises basic 
and market rent provisions.
     Amends the National Housing Act to permit 
multifamily project rehabilitation loans to be made from 
recaptured interest rate reduction payments.
     Amends the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 to permit technical assistance for 
preservation of low-income housing for which project-based 
rental assistance is provided at below market rent levels and 
may not be renewed.
     Amends the Housing Act of 1937 to make section 8 
renewals available for up to one year or any number of years, 
subject to appropriations.
     Amends the Housing and Community Development 
Amendments of 1978 to make residents of any project receiving 
flexible subsidy program assistance eligible for enhanced 
voucher assistance.
     Amends the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1997 to extend grant and loan authority for 
management and disposition of multifamily properties and 
mortgages through FY 2000. Includes property construction among 
eligible activities.
     Amends section 8 of the United States Housing Act 
of 1937 to provide for enhanced voucher assistance for certain 
families in projects where mortgages have been prepaid, 
mortgage insurance contracts have been terminated section 8 
rental assistance contracts have expired or been terminated, or 
the transaction under which the project is preserved as 
affordable housing results in tenants being eligible for such 
assistance.
     Amends the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 to provide for Section 8 enhanced 
voucher assistance for certain tenants in housing where Section 
8 assistance is not renewed.
     Amends the Low-Income Housing Preservation and 
Resident Homeownership Act of 1990 to provide for section 8 
enhanced voucher assistance for certain tenants in housing 
where mortgages have been prepaid or insurance contracts have 
been terminated.

                         Gramm-Leach-Bliley Act

                (Public Law 106-102, November 12, 1999)

State Regulation of Insurance
     Prohibits national banks and subsidiaries from 
selling or underwriting title insurance, except for certain 
grandfathered banks and subsidiaries already doing so. Permits 
a national bank and its subsidiary to sell title insurance as 
agent in a State which permits its State banks to do so, 
subject to the same conditions.

Federal Home Loan Bank System Modernization Act of 1999
     Amends the Federal Home Loan Bank Act (FHLBA) to 
expand Federal Home Loan Bank (FHLB) membership parameters to 
make a Federal savings association's membership in the FHLB 
system voluntary instead of mandatory.
     Expands parameters governing long-term advances 
to: (1) include advances to any community financial institution 
for small farms, and small agri-businesses; (2) state that FHLB 
cash and deposits are eligible collateral for securing a bank's 
interest in a loan or advance; and (3) repeal the 30 percent 
capital cap on the aggregate amount of outstanding advances 
that are secured by real estate related collateral. States 
that, in the case of any community financial institution, the 
collateral that is eligible for an FHLB loan includes secured 
loans for small business, agriculture, or securities 
representing a whole interest in secured loans.
     Authorizes an FHLB to renew certain advances on 
its own determination without concurrence by the Federal 
Housing Finance Board (FHFB). Requires an FHLB member with an 
advance secured by insufficient eligible collateral to reduce 
its level of outstanding advances according to a schedule 
determined by the FHLB (currently, by the FHFB). Authorizes 
such Board to: (1) review the collateral standards applicable 
to each FHLB for designated classes of collateral; and (2) 
require an increase in such standards for safety and soundness 
purposes.
     Revises eligibility criteria to permit certain 
community financial institutions to gain FHLB membership 
regardless of the percentage of total assets represented by 
residential mortgage loans.
     Amends the FHLBA to restructure the management of 
the FHLB boards of directors pertaining to: (1) residency 
requirements; (2) staggered terms of office; (3) election of 
chairpersons; and (4) compensation limitations and expenses.
     Repeals the mandates for: (1) a procedure for 
informal review of certain supervisory decisions; and (2) the 
Housing Opportunity Hotline program.
     Repeals: (1) the prohibition against an FHLB's 
acquisition of a bank building by purchase or over ten-year 
lease; (2) the requirement for FHFB approval of personnel 
decisions as well as the exercise of corporate powers by any 
FHLB; and (3) the authorization for an FHLB president to be a 
member of the FHLB board.
     Empowers the FHFB to: (1) charge an FHLB or any 
executive officer or director with violation of law or 
regulation in connection with the granting of any application 
or other request by the bank, or any written agreement between 
the bank and the FHFB; (2) take affirmative action to correct 
conditions resulting from violations or practices; (3) limit 
FHLB activities; and (4) address any insufficiencies in capital 
levels resulting from application of statutory requirements of 
FHLB membership.
     Repeals FHFB jurisdiction to approve the granting 
by an FHLB of a member's application to secure an advance.
     Revises guidelines governing reserves and 
dividends to permit dividend payments out of previously 
retained earnings or current net earnings (currently, only out 
of net earnings). Repeals the requirement for: (1) FHFB 
approval for such dividend payments; and (2) investment of FHLB 
reserves exclusively in U.S. obligations or certain other 
Federal Government-related securities.
     States that FHLB payments to the Resolution 
Funding Corporation to cover interest payments on obligations 
shall be a specified percentage of net earnings (currently an 
aggregate sum certain).
     Revamps FHLB capital structure parameters to 
direct: (1) the Finance Board to issue uniform capital 
standards regulations governing FHLB leverage limitation and 
risk-based capital requirements; and (2) each FHLB board of 
directors to submit for FHFB approval a capital structure plan 
determined to be best suited for the bank's condition and 
operation as well as for the interests of its shareholders. 
Prescribes plan contents.

Community Reinvestment
     Amends the Federal Deposit Insurance Act (FDIA) to 
require full public disclosure and an annual status report of 
any agreement entered into pursuant to or in connection with 
the Community Reinvestment Act (CRA), between an insured 
depository institution, its affiliate, and any non-governmental 
party, that involves depository institution resources 
(including full text disclosure to the appropriate Federal 
banking regulatory agency). Imposes sanctions for violation of 
such mandate by a non-depository institution.
     Amends the CRA to set forth a graduated schedule 
of decreasing CRA examinations of certain small-sized banks 
commensurate with their record of meeting CRA ``community 
credit needs''. Emphasizes retention of the CRA examination 
schedule for regulated financial institutions in connection 
with deposit facility applications.
     Directs the Board of Governors of the Federal 
Reserve System to conduct a comprehensive study of the CRA and 
report to Congress and the public on CRA default, delinquency, 
and profitability data.
     Instructs the Secretary of the Treasury to study 
and report to Congress on the extent to which adequate services 
are being provided as intended by the CRA.

          FHA Downpayment Simplification Extension Act of 2000

                 (Public Law, 106-281, October 6, 2000)

     Amends the National Housing Act to extend certain 
downpayment provisions of the Federal Housing Administration 
single family housing mortgage insurance program to include 
mortgages closed on or before October 30, 2000.

 Departments of Veterans Affairs and Housing and Urban Development and 
             Independent Agencies Appropriations Act, 2001

                 (Public Law 106-377, October 27, 2000)

     Requires the Secretary of HUD, from amounts made 
available under this title for FY 2001 for housing 
opportunities for persons with AIDS, to make a grant for any 
State that: (1) received an allocation in a prior fiscal year 
due to having a specified number of AIDS cases outside of a 
metropolitan statistical area (MSA) with a population exceeding 
500,000; and (2) is not otherwise eligible for a FY 2001 
allocation because the areas outside the MSAs that qualify for 
funding in FY 2001 do not have the number of AIDS cases 
required.
     Amends the Department of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1997, by giving HUD the authority to 
dispose of HUD-held mortgages.
     Amends the United States Housing Act of 1937 by 
permitting the Secretary of HUD to set maximum payment 
standards for enhanced vouchers at any level deemed a 
``reasonable limit.''
     Bars the use of funds appropriated by any Act by 
the Secretary of HUD to prohibit any entity that is responsible 
for convening and managing a continuum of care process in a 
community for purposes of the Stewart B. McKinney Homeless 
Assistance Act from participating in such capacity unless the 
Secretary has published in the Federal Register a description 
of all circumstances that would be grounds for, and the 
procedures for, such prohibition.
     Requires any grant or assistance made pursuant to 
this title to be made in accordance with HUD accountability 
provisions of the Department of Housing and Urban Development 
Reform Act of 1989 on a competitive basis.
     Amends the Stewart B. McKinney Homeless Assistance 
Act to permit covered programs to use the environmental 
assumption authority contained in the Multifamily Housing 
Property Disposition Reform Act of 1994.
     Amends the Native American Housing Assistance and 
Self-Determination Act of 1996 to make housing assistance under 
such Act available for law enforcement officers on reservations 
or in other Indian areas if the presence of such officers may 
deter crime.
     Prohibits the use of funds appropriated in any Act 
by the Secretary of HUD to provide any assistance to benefit a 
facility which sells predominantly cigarettes or other tobacco 
products (such sales representing more than 35 percent of the 
annual, total in-store, non-fuel sales).
     Bars the use of funds to implement the June 2000 
agreement between the Commonwealth of Puerto Rico, the Puerto 
Rico Public Housing Administration, and HUD related to the 
allocation of operating subsidies for such Housing 
Administration unless the Housing Administration and HUD submit 
by December 31, 2000, a schedule of benchmarks and measurable 
goals to the Appropriations Committees designed to address 
issues of mismanagement and safeguards against fraud and abuse.
     Amends the United States Housing Act of 1937 to 
provide for onsite computer access and training resources for 
public housing residents.
     Authorizes computer centers in and around public 
housing, through a Neighborhood Networks initiative and related 
activities, to be established, operated, and assisted by the 
use of: (1) public housing capital and operating funds, and 
certain technical assistance; and (2) demolition, site 
revitalization, replacement housing, and tenant-based 
assistance grants for projects.
     Amends the National Housing Act to extend through 
FY 2001 the authority for all project owners to retain excess 
income under the rental and cooperative housing program.
     Amends the Housing and Community Development Act 
of 1974 to modify the definition of ``urban county'' for 
purposes of the community development block grant program and 
to authorize an urban county that was so classified for FY 
1999, at its option, to remain classified as such for purposes 
of such Act.
     Amends the United States Housing Act of 1937 to 
make recipients under the Native American Housing Assistance 
and Self-Determination Act of 1996 eligible for certain 
supportive services and empowerment activities currently 
offered to public housing residents.
     Extends the availability of certain grants made 
available under an economic development initiative pursuant to 
the Housing and Community Development Act of 1974 through FY 
2001.
     Amends the Stewart B. McKinney Homeless Assistance 
Act to permit the use of assistance for the costs of 
implementing management information systems for collecting 
unduplicated counts of homeless people and analyzing patterns 
of use of assistance under such Act.
     Amends the Housing and Community Development Act 
of 1992 to authorize loan guarantees for Indian housing to be 
used to refinance standard housing on Indian trust lands or in 
Alaska Native areas.
     Amends the United States Housing Act of 1937 to 
include within the definition of ``eligibility event,'' for 
purposes of eligibility for enhanced section 8 voucher 
assistance, any termination or expiration of a contract for 
rental assistance during fiscal years after 1996 prior to the 
effective date of the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies 
Appropriations Act, 2001.
     Amends the Stewart B. McKinney Homeless Assistance 
Act to prohibit grants for housing assistance for any 
governmental entity unless such entity agrees to develop and 
implement policies for the discharge of persons from publicly 
funded institutions to prevent such discharge from immediately 
resulting in homelessness.
     Amends the Preserving Affordable Housing for 
Senior Citizens and Families into the 21st Century Act to 
redesignate the Commission on Affordable Housing and Health 
Care Facility Needs in the 21st Century as the Commission on 
Affordable Housing and Health Care Facility Needs for Seniors 
in the 21st Century.
     Amends the Stewart B. McKinney Homeless Assistance 
Act to terminate the Interagency Council on the Homeless on 
October 1, 2005 (previously, October 1, 1994).
     Amends the United States Housing Act of 1937 to 
revise provisions regarding section 8 public housing agency 
(PHA) project-based assistance. Allows a PHA to use amounts 
provided under an annual contributions contract to enter into a 
housing assistance payment contract with respect to an 
existing, newly constructed, or rehabilitated structure subject 
to specified requirements, including those for: (1) income 
mixing; (2) resident choice; (3) contract terms and extensions; 
(4) rent calculations; and (5) tenant selection.
     Requires the Secretary of HUD, in managing and 
disposing of any multifamily property that is held by the 
Secretary and occupied primarily by elderly or disabled 
families, to maintain any Section 8 rental assistance payments 
that are attached to any dwelling units in the property.
     Makes section 8 family unification assistance 
available for up to 18 months for eligible youths between the 
ages of 18 and 21 who have left foster care at age 16 or 
older.mends the Housing and Community Development Act of 1992 
to make permanent an FHA multifamily mortgage credit 
demonstration program.

General Provisions
     Prohibits the obligation or expenditure of any of 
the funds provided in title II of this Act for technical 
assistance, training, or management improvements unless HUD 
provides a description of each proposed activity and a detailed 
budget estimate of costs as part of the budget justifications 
to the Appropriations Committees.

      American Homeownership and Economic Opportunity Act of 2000

                (Public Law 106-569, December 27, 2000)

Housing Affordability Barrier Removal Act of 2000
     Amends the Housing and Community Development Act 
of 1992 to authorize FY 2001 through 2005 appropriations for 
(consolidated) State and local grants for regulatory barrier 
removal. Makes consortia of local governments eligible 
grantees. Requires grant use in coordination with the local 
comprehensive affordability strategy under the Cranston-
Gonzalez National Affordable Housing Act.
     Amends the Housing and Community Development Act 
of 1992 to state that the regulatory barriers clearinghouse 
shall be established within the Office of Policy Development of 
the Department of Housing and Urban Development under the 
direction of the Assistant Secretary for Policy Development and 
Research.

Homeownership for Working Families
     Authorizes the Secretary to insure refinancing of 
home equity conversions for elderly home owners. Provides for: 
(1) specified transaction disclosures; (2) waiver of counseling 
under specified conditions; (3) fee limitations; (4) single 
premium reduction; and (5) an actuarial study to determine 
insurance premium adequacy.
     Includes housing cooperatives in the demonstration 
program of insurance of home equity conversion mortgages for 
elderly home owners. Directs the Secretary to waive up-front 
premiums for mortgages used for costs of long-term care 
insurance or health care.
     Amends the Housing Opportunity Program Extension 
Act of 1996 to authorize FY 2001 appropriations for self-help 
housing providers. Makes certain nongrant fund advances by an 
organization eligible for reimbursement. Revises fund recapture 
provisions.

Section 8 Homeownership Option
     Amends the United States Housing Act of 1937 to 
provide a single grant home ownership downpayment option (in 
lieu of monthly payments) under the section 8 housing 
assistance program.
     Authorizes a public housing agency providing 
tenant-based section 8 housing assistance to provide assistance 
for a qualifying disabled family that purchases a home which 
will be owned and occupied by one or more members of such 
family. Sets forth program provisions.
     Authorizes FY 2001 appropriations (with a 50 
percent matching requirement) for home ownership programs under 
the section 8 home ownership demonstration program.
Private Mortgage Insurance Technical Corrections and Clarification Act
     Amends the Homeowners Protection Act of 1998 with 
respect to the definition of ``cancellation date'' to replace 
``amortization schedules'' with, and define, ``amortization 
schedule then in effect'' for purposes of adjustable rate 
mortgages.
     Includes balloon mortgages within the definition 
of ``adjustable rate mortgages.''
     States that if a residential mortgage loan is 
modified (with mortgagor-mortgagee agreement) the cancellation 
date, termination date, or final agreement shall be 
recalculated to reflect such modifications.
     Extends mortgage insurance cancellation rights 
beyond the cancellation date for a qualifying borrower who is 
current on required payments.
     Revises the automatic termination date with 
respect to a mortgagor who is not current on payments as of the 
mortgage termination date.
     States that the cancellation or termination of 
private mortgage insurance shall not affect the rights of any 
mortgagee, servicer, or insurer to enforce any accrued 
obligation for premium payments.
     Revises and defines specified terms.

Native American Housing
     Establishes the Lands Title Report Commission to 
facilitate home loan mortgages on Indian trust lands. 
Terminates the Commission one year after its initial meeting.
     Amends the Housing and Community Development Act 
of 1992 to make permanent the Indian housing loan guarantee 
authority.
     Amends the Native American Housing Assistance and 
Self-Determination Act of 1996 to: (1) restrict the Secretary's 
authority to waive housing plan requirements to not more than 
90 days; (2) permit the Secretary to waive local cooperation 
requirements upon a good faith showing and agreement to make 
certain payments in lieu of taxes; (3) permit assistance to 
Indian families that are not low-income upon a showing of need; 
(4) eliminate separate housing plan requirements for small 
tribes; (5) permit the Secretary to waive certain environmental 
review requirements under specified conditions; (6) permit 
reservation housing assistance for specified full-time Federal, 
State, county, or tribal law enforcement officers; (7) revise 
audit, review, and hearing provisions; (8) prescribe a funding 
formula for housing authorities operating fewer than 250 units 
based on an average of FY 1992 through 1997 allocations; and 
(9) repeal the requirement regarding the certification of 
compliance with subsidy layering requirements.

Hawaiian Homelands Homeownership Act of 2000
     Amends the Native American Housing Assistance and 
Self-Determination Act of 1996 to add a new Title VIII, Housing 
Assistance for Native Hawaiians. Directs the Secretary to make 
block grants to carry out affordable housing activities for 
Native Hawaiian families on or near Hawaiian Home Lands. 
Authorizes the Secretary to make grants to the Department of 
Hawaiian Home Lands (defined as the agency or department of 
Hawaii responsible for administration of the Hawaiian Homes 
Commission Act, 1920) only if the Director of the Department 
has submitted a housing plan that meets requirements under this 
Act, unless otherwise waived by the Secretary. Sets forth plan 
terms, conditions, and requirements, including a condition 
that, to the extent practicable, the Department use private 
nonprofit organizations in the planning and development of such 
housing. Provides for plan review by the Secretary.
     Sets forth provisions regarding the treatment of 
program income, project labor standards, and environmental 
review under the National Environmental Policy Act of 1969.
     Limits assistance for affordable housing 
activities under the program to low-income Native Hawaiian 
families, with specified exceptions for: (1) certain home 
ownership activities; and (2) assistance to non-Native 
Hawaiians if the presence of the family in the housing involved 
is essential to the well-being of Native Hawaiian families and 
the housing need cannot be met without assistance.
     Describes eligible affordable housing activities. 
Sets forth program requirements, including the development of 
policies governing rents, home buyer payments, eligibility, 
management, leases, and tenant selection. Sets the maximum 
monthly rent or home buyer payment at 30 percent of the monthly 
adjusted family income.
     Directs the Secretary, in instances of substantial 
Department noncompliance, to terminate, reduce, or limit 
payments. Authorizes the Secretary, in addition to such 
actions, to refer the matter to the Attorney General for civil 
action.
     Sets forth review, auditing, and reporting 
requirements for the Secretary and the Director. Provides for 
discretionary audits by the Comptroller General. Authorizes 
appropriations through FY 2005.
     Amends the Housing and Community Development Act 
of 1992 to authorize the Secretary to guarantee up to $100 
million in loans from approved lenders in each of FY 2001 
through 2005 to provide access to sources of private financing 
to Native Hawaiian families who could otherwise not acquire 
housing financing because of the unique legal status of the 
Hawaiian Home Lands or as a result of a lack of access to 
private financial markets. Authorizes loan guarantees of up to 
100 percent of unpaid interest and principal. Provides that a 
loan will be used to construct, acquire, or rehabilitate not 
more than four-family dwellings that are standard housing and 
located on Hawaiian Home Lands for which an approved housing 
plan to provide affordable home ownership housing applies.
     Sets forth eligible lender categories.
     Limits loans to 30-year terms. Permits the 
Secretary to guarantee a loan only upon determining that there 
is a reasonable prospect of repayment. Establishes a loan 
guarantee fee. Authorizes loan transfer and assumption, subject 
to governmental supervision.
     Provides for lender disqualification for specified 
violations, and civil monetary penalties for intentional 
violations. Establishes a Hawaiian Housing Guarantee Fund for 
the purpose of providing loan guarantees under this Act. 
Authorizes appropriations through FY 2005.
     Directs the Secretary to establish safety and 
quality standards for housing financed under these provisions.
Manufactured Housing Improvement Act of 2000
     Amends the National Manufactured Housing 
Construction and Safety Standards Act of 1974 to define 
specified terms.
     Directs the Secretary to establish manufactured 
home construction and safety standards in accordance with the 
consensus standards development process (provided for by this 
Act).
     Directs the Secretary to contract with: (1) a 
temporary administering organization to appoint the initial 
members of the consensus committee and administer the consensus 
standards development and related procedural and enforcement 
processes; and (2) a subsequent administering organization for 
the development of Federal standards and related procedural and 
enforcement regulations.
     Establishes the consensus committee which shall 
provide the Secretary with periodic recommendations respecting 
Federal manufactured housing construction and safety standards 
and related procedural and enforcement regulations. States that 
committee members shall represent producer, consumer, and 
general interest and public official interests. Sets forth 
related administrative provisions.
     Eliminates the National Manufactured Home Advisory 
Council.
     Requires manufacturers to provide approved design 
and installation instructions with each manufactured home.
     Requires, within specified deadlines: (1) the 
consensus committee to develop and submit to the Secretary 
proposed model manufactured home installation standards; and 
(2) the Secretary to develop model standards. Requires an 
opportunity for public comment prior to such standards' 
issuance. Prohibits a State or manufacturer, during the five-
year period beginning with the enactment of this Act, from 
establishing manufactured home installation standards that 
provide less protection than existing standards. Directs the 
Secretary, not later than the expiration of such five-year 
period, to implement in a State that has not adopted a similar 
program a program which provides for: (1) installation 
standards and designs and instructions that meet or exceed 
model standards; (2) installer training and licensing; and (3) 
installation inspection.
     Directs the Secretary to submit cost information 
to the consensus committee.
     Includes among research and testing activities: 
(1) encouraging government-sponsored housing entities to 
implement secondary market securitization programs for 
manufactured home loans; and (2) reviewing the programs for 
Federal Housing Administration manufactured home loans.
     Makes it a prohibited act to fail to comply with 
the Secretary's installation standards in any State that has 
not adopted a State installation program.
     Authorizes the Secretary to collect manufacturer 
fees, and sets forth their permitted and prohibited uses. 
Establishes in the Treasury a Manufactured Housing Fees Trust 
Fund.
     Requires inspection and monitoring work to be 
carried out by independent contractors.
     Requires the Secretary to continue funding States 
with approved plans at levels not less than those existing 
immediately prior to enactment of this Act.
     Directs the Secretary to establish a dispute 
resolution program within five years of the enactment of this 
Act.
     Eliminates the manufactured housing annual 
reporting requirement.
     Sets forth effective date provisions.
     Sets forth savings provisions, including certain 
contract duration provisions.
Rural Housing Ownership
     Amends the Housing Act of 1949 to direct the 
Secretary to provide guarantees for rural housing loan 
refinancing.
     Increases from $2,500 to $7,500 the amount of a 
rural housing repair loan that needs to be evidenced only by a 
promissory note.
     Makes limited partnerships eligible for farm labor 
housing loans.
     Sets forth project accounting and recordkeeping 
requirements.
     Extends the rural designation of certain areas 
until the 2010 census.
     Makes Indian tribes (as defined by this Act) 
eligible for the multifamily rental housing loan guarantee 
program.
     Establishes civil and criminal penalties for rural 
housing program equity skimming. Authorizes the Secretary to 
impose civil monetary penalties and prohibit renewal or 
extension of loan or assistance agreements for program 
violations.
     Amends Federal criminal law to include such equity 
skimming under money laundering provisions.

Affordable Housing for Seniors and Families Act
     Directs the Secretary: (1) to approve prepayment 
of indebtedness, including refinancing under specified 
conditions, provided the project sponsor continues to operate 
the project on terms at least as advantageous to tenants as 
required under the original agreement; and (2) upon 
refinancing, to use at least 50 percent of the resultant 
savings in a manner that is advantageous to the tenants.

Housing for the Elderly
     Amends the Housing Act of 1959, with respect to 
supportive services for the elderly, to make for-profit limited 
partnerships eligible program participants.
     Permits owners to use mixed funding sources for 
amenities and other design features.
     Expands acquisition authority.
     Authorizes project reserves to be used to reduce 
the number of dwelling units by retrofitting unmarketable 
units.
     States that no provision of law shall be construed 
to prohibit commercial operations in a project location that 
benefits project residents.

Housing for Persons with Disabilities
     Amends the Housing Act of 1959 to make certain 
for-profit limited partnerships eligible recipients under the 
supportive housing for persons with disabilities program.
     Amends the Cranston-Gonzalez National Affordable 
Housing Act with respect to the supportive housing for persons 
with disabilities program to permit owners to use mixed funding 
sources for amenities and other design features.
     Provides that tenant-based assistance may be 
provided through a qualifying public housing agency or a 
private nonprofit organization. Limits tenant-based assistance 
to 25 percent of fiscal year program assistance.
     Authorizes project reserves to be used to reduce 
the number of dwelling units by retrofitting unmarketable 
units.
     States that no provision of law shall be construed 
to prohibit commercial operations in a project location that 
benefits project residents.

Other Provisions
     Amends the Housing and Community Development Act 
of 1992 to permit service coordinator services to be provided 
to low-income or elderly persons living in the vicinity of 
specified federally assisted housing.
     Includes telemarketing fraud protection among the 
services provided to elderly residents of federally assisted 
housing and under the supportive housing program. Directs the 
Secretary, in coordination with the Secretary of Health and 
Human Services, to establish related service coordinator 
guidelines.

Preservation of Affordable Stock
     Amends the National Housing Act, as amended by the 
Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 2001, 
respecting rental and cooperative housing for lower-income 
families, to eliminate certain restrictions on owner retention 
of excess charges, including retention and use of certain 
previously collected excess charges.

Other Related Housing Provisions
     Amends the National Housing Act to extend the 
insurance-eligible loan term for manufactured home lots to 20 
years and 32 days.
     Amends the United States Housing Act of 1937, as 
amended by the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 
2001, respecting enhanced section 8 voucher assistance, to: (1) 
include within the definition of ``eligibility event'' any 
termination or expiration of a contract for rental assistance 
during any fiscal year after 1994; and (2) provide that a 
maximum payment adversely affecting assisted families shall not 
be considered reasonable.
     Permits section 8 assistance to ``grand-
families.''

Federal Reporting Act of 2000
     Makes a specified provision of the Federal Reports 
Elimination and Sunset Act of 1995 (reporting requirements 
included on a list prepared by the Clerk of the House of 
Representatives for the first session of the 103rd Congress) 
inapplicable to certain specified Acts (Sec. 1103) Sets forth 
specified report coordination requirements respecting: (1) the 
Federal Deposit Insurance Corporation; (2) the Board of 
Governors of the Federal Reserve System; (3) the Comptroller of 
the Treasury; (4) the Export-Import Bank; (5) the Department of 
Housing and Urban Development; and (6) the Federal Housing 
Administration.

Financial Regulatory Relief and Economic Efficiency Act of 2000
     Amends the Home Owners' Loan Act (HOLA) to: (1) 
repeal savings association liquid asset requirements; and (2) 
permit a savings and loan holding company, with the prior 
approval by the Director of the Office of Thrift Supervision, 
to acquire more than five percent of the voting shares of a 
non-subsidiary savings association or non-subsidiary savings 
and loan holding company.
     Amends the Federal Deposit Insurance Corporation 
Improvement Act of 1991 to increase from 90 percent to 100 
percent of fair market value the permissible valuation of 
readily marketable purchased mortgage servicing rights that may 
be included in calculating an insured depository institution's 
tangible capital, risk-based capital, or leverage limit, if the 
Federal regulatory agencies jointly find that such an increase 
will not adversely affect the deposit insurance funds or the 
safety and soundness of insured depository institutions.

        IX. THE 21ST CENTURY--NEW CHALLENGES IN A NEW MILLENNIUM

 Departments of Veterans Affairs and Housing and Urban Development and 
             Independent Agencies Appropriations Act, 2002

                 (Public Law 107-73, November 26, 2001)

     Prohibits funds under this Act from being used 
during FY 2002 to investigate or prosecute under the Fair 
Housing Act any otherwise lawful activities aimed at achieving 
or preventing government or court action.
     Directs the Secretary of HUD to make housing for 
persons with AIDS grants to any State that qualified in FY 2001 
but does not qualify in FY 2002 due to decreased AIDS cases in 
non-metropolitan areas of the State.
     Amends the Housing and Urban Development Act of 
1968 to eliminate the housing counseling grant termination 
date.
     Amends the National Housing Act to authorize the 
Federal Housing Administration to insure certain adjustable 
mortgages.
     Directs the Secretary to review early defaults and 
claims, and authorizes termination of poor performing 
mortgagees.
     Requires HUD to grant awards on a competitive 
basis.
     Directs the Secretary to maintain section 8 
assistance on properties occupied by elderly or disabled 
families.
     Amends the National Housing Act to increase 
multifamily loan limits.
     Amends the National Housing Act respecting 
Hawaiian Home Lands to: (1) revise the definition of ``Native 
Hawaiian''; and (2) provide that possession of a lease of 
Hawaiian home lands shall be sufficient to certify mortgage 
eligibility.
General Provisions
     Prohibits funds made available under this Act from 
being used to implement or enforce the community service 
requirement under the United States Housing Act of 1937 except 
for residents of HOPE VI projects.

         Homeless Veterans Comprehensive Assistance Act of 2001

                 (Public Law 107-95, December 21, 2001)

     Amends the McKinney-Vento Homeless Assistance Act 
to require the Interagency Council on the Homeless to meet no 
less often than annually.
     Amends the United States Housing Act of 1937 to 
direct the Secretary of HUD to set aside specified amounts for 
FY 2003 through 2006 for providing, through a supported housing 
program administered in conjunction with the Department, rental 
housing assistance to homeless veterans with chronic mental 
illness or substance abuse disorders.

  2002 Supplemental Appropriations Act for Further Recovery From and 
           Response to Terrorist Attacks on the United States

                  (Public Law 107-206, August 2, 2002)

     Increases the total loan guarantee limitation for 
the mutual mortgage insurance program account.
     Makes amounts available for the cost of guaranteed 
loans under both the special risk and general insurance funds 
also available to subsidize total loan principal.
     Directs the Secretary of HUD to enter into new 
contracts under the Asset Control Area Demonstration Program.
     Requires the Secretary to report quarterly to 
Congress on the status of any FHA- insured multifamily housing 
project that is in default for longer than 60 days.

 Continuing Appropriations for Fiscal Year 2003, and for other purposes

                 (Public Law 107-240, October 11, 2002)

     Authorizes the payment of demolition, site 
revitalization, replacement housing, and tenant-based 
assistance grants for projects under the United States Housing 
Act of 1937.

       Native American Housing Assistance and Self-Determination 
                      Reauthorization Act of 2002

                (Public Law 107-292, November 13, 2002)

     Amends the Native American Housing Assistance and 
Self-Determination Act of 1996 to reauthorize through FY 2007: 
(1) block grants; (2) Federal loan guarantees (aggregate fiscal 
year limitation and credit subsidy); (3) training and technical 
assistance; and (4) the Indian Housing Loan Guarantee Fund.
     Includes planning among permitted block grant 
activities.
     Requires a recipient to use program income for 
housing related activities (previously, only for affordable 
housing activities).
     Subjects regulations pursuant to any amendments to 
such Act to negotiated rulemaking procedures.
     Extends Federal loan guarantees to encompass 
housing-related community development activity. Repeals the 
requirement that an Indian tribe or its housing entity seek 
alternative financing before using guaranteed loan funds.
     Directs the Secretary of HUD to study and report 
to Congress on the feasibility of demonstration projects for 
possible community development demonstration projects and for 
self-determination in the design and implementation of Federal 
housing funding.
     Requires the Secretary to study and report to 
Congress on the extent of black mold infestation of Native 
American housing in the United States.

               FHA Downpayment Simplification Act of 2002

                 (Public Law 107-326, December 4, 2002)

     Amends the National Housing Act to make the 
existing Federal Home Administration (FHA) single-family 
downpayment provisions permanent. (Such provisions were to 
expire at the end of 2002.)
     Requires an original lender, in conjunction with a 
FDA insured loan, to provide a prospective borrower with a one-
page analysis of other mortgage products for which he or she 
would qualify, including information about: (1) rates, 
insurance premiums, and other costs and fees; and (2) mortgage 
insurance premium termination.
     Amends the Higher Education Amendments of 1998 to 
repeal the Government National Mortgage Association (GNMA) 
three-percent guarantee fee increase scheduled to take effect 
in FY 2005.
     Amends the National Housing Act to provide for 
indexing of multi-family mortgage limits for FHA mortgage 
insurance programs.

      National Flood Insurance Program Reauthorization Act of 2003

                  (Public Law 108-3, January 13, 2003)

     Amends the National Flood Insurance Act of 1968 to 
extend through December 31, 2003: (1) the authority under which 
the Director of the Federal Emergency Management Agency may 
issue notes and other obligations to the Secretary of the 
Treasury for the purpose of carrying out the national flood 
insurance program; (2) the authority to enter into new flood 
insurance contracts; (3) requirements for carrying out 
emergency implementation of the flood insurance program; and 
(4) the authorization of appropriations for carrying out 
studies under the Act.

                Hospital Mortgage Insurance Act of 2003

                  (Public Law 108-91, October 3, 2003)

     Amends Section 242 of the National Housing Act to 
revise hospital need and feasibility standards for purposes of 
hospital mortgage insurance eligibility.
     Directs the Secretary of Housing and Urban 
Development to: (1) require satisfactory evidence that the 
hospital will be located in a State or political subdivision 
with reasonable minimum licensing and operating standards; and 
(2) establish the means for determining hospital need and 
feasibility, including following State procedures in States 
that have such official procedures.
     Through July 31, 2006, exempts critical access 
hospitals from the requirement that not more than 50 percent of 
the total patient days during any year are customarily 
assignable to the categories of chronic convalescent and rest, 
drug and alcoholic, epileptic, mentally deficient, mental, 
nervous and mental, and tuberculosis.
     Directs the Secretary to report to Congress the 
effects that the exemption for critical access hospitals has on 
the provision of mortgage insurance for hospitals and on the 
General Insurance Fund.

                          Tornado Shelters Act

                 (Public Law 108-146, December 3, 2003)

     Amends the Housing and Community Development Act 
of 1974 to permit the use of community development block grants 
for construction or improvement of tornado safe shelters for 
residents of a manufactured housing park.
     Requires an eligible shelter to: (1) be located in 
a neighborhood or park that contains at least 20 units, 
consists predominately of low and moderate income people, and 
be in a State where a tornado has occurred within the current 
or last three years; (2) comply with tornado appropriate safety 
and construction standards; (3) be large enough to accommodate 
all members of a park; and (4) be located in a neighborhood or 
park that has a warning siren.
     Authorizes $5 million in appropriations for 
tornado shelters in FY2004.

      National Flood Insurance Program Reauthorization Act of 2004

                 (Public Law 108-171, December 6, 2003)

     Amends the National Flood Insurance Act of 1968 to 
extend through December 31, 2004: (1) the authority under which 
the Director of the Federal Emergency Management Agency may 
issue notes and other obligations to the Secretary of the 
Treasury for the purpose of carrying out the national flood 
insurance program; (2) the authority to enter into new flood 
insurance contracts; (3) requirements for carrying out 
emergency implementation of the flood insurance program; and 
(4) the authorization of appropriations for carrying out 
studies under the Act.

                     American Dream Downpayment Act

                (Public Law 108-186, December 16, 2003)

     Title I is cited as the ``American Dream 
Downpayment Act.'' It amends the Cranston-Gonzalez National 
Affordable Housing Act to: (1) authorize the Secretary of 
Housing and Urban Development (the Secretary) to make grants to 
State and local participating jurisdictions for downpayment 
assistance and related home repair to low-income, first-time 
home buyers; (2) limit family assistance to the greater of 6 
percent of the purchase price or $10,000; (3) require a 
participating jurisdiction to include intended grant uses in 
its fiscal year comprehensive housing affordability strategy 
under such Act; (4) set forth State and local jurisdiction 
allocation formulas;(5) permit fund reallocation; (6) require 
the Comptroller General to report the impact of such grants on 
a State-by-State basis; (7) terminate grant authority after 
December 31, 2007; (8) make the Uniform Relocation Assistance 
and Real Property Acquisition Policies Act of 1970 inapplicable 
to downpayment under the Act; and (9) authorize appropriations 
of $200 million for each of FY2004 through FY2007.
     Title II is cited as the ``Living Equitably: 
Grandparents Aiding Children and Youth Act of 2003,'' or the 
``LEGACY Act of 2003.'' It directs the Secretary to: (1) carry 
out a five-year demonstration program in connection with the 
Section 202 supportive housing program to provide assistance to 
private nonprofit organizations for expanding the supply of 
intergenerational dwelling units for intergenerational families 
(families headed by an elderly person); (2) report on such 
program's effectiveness; and ensure that HUD personnel are 
adequately trained to serve the targeted families. The Act 
authorizes $10 million in appropriations for the demonstration 
program. The Secretary and the Director of the Bureau of the 
Census are directed to conduct a joint study of the housing 
needs of such families.
     Title III amends the National Housing Act to 
provide that the initial interest rate adjustment on hybrid 
adjustable rate single-family mortgages is limited to one 
percentage point only if the interest rate is fixed for three 
years or less. Section 302 is cited as the ``FHA Multifamily 
Loan Limit Adjustment Act of 2003.'' The National Housing Act 
is amended to permit the Secretary to increase the statutory 
mortgage limits under the FHA multifamily loan insurance 
programs by up to 140 percent in any geographic area where the 
Secretary finds that cost levels require such increases, and by 
up to 170 percent on a project-by-project basis in high-cost 
areas. The mortgage limits are increased for the FHA Section 
207 and Section 213 programs.
     Title IV is cited as the HOPE VI Program 
Reauthorization and Small Community Mainstreet Rejuvenation and 
Housing Act of 2003. The United States Housing Act of 1937 is 
amended to: (1) revise criteria for HOPE VI grants, including 
addition of criteria regarding tenant displacement, existing 
tenant occupancy priority, and timeliness of project 
completion; (2) revise the definition of ``severely distressed 
public housing'' to include areas lacking sufficient affordable 
housing, transportation, supportive services, economic 
opportunity, schools, civic and religious institutions, and 
public services; (3) direct the Comptroller General to submit a 
report to Congress regarding the extent of severely distressed 
elderly and non-elderly disabled public housing, and 
recommended improvements to that housing through the HOPE VI 
program or other means; (4) authorize appropriations through FY 
2006; (5) extend the program authority through September 30, 
2006; (6) provide that the program's purposes include assisting 
smaller communities to provide affordable low-income housing in 
connection with main street revitalization or redevelopment 
projects; (7) authorize main street grants of up to $1 million 
in a fiscal year to smaller communities for affordable low-
income housing in a commercial area in connection with an 
eligible project; (8) require that the purpose of a project is 
the revitalization or redevelopment of a historic or 
traditional commercial area, that it involves the participation 
by the government, private entities, and the community, and 
that the project complies with historic preservation 
guidelines; and (9) direct the Secretary, for each fiscal year, 
to set aside up to 5 percent of HOPE VI appropriations for main 
street housing grants.
     Title V amends the Housing and Community 
Development Act of 1974 to: (1) define ``insular area'' as each 
of Guam, the Virgin Islands, American Samoa, and the 
Commonwealth of the Northern Mariana Islands; (2) make such 
areas eligible for community development grants; and (3) direct 
the Secretary, for each fiscal year, to reserve $7 million in 
community development grants for insular areas.