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Page:United States Statutes at Large Volume 84 Part 2.djvu/474

 1804

PUBLIC LAW 91-609-DEC. 31, 1970 COMMUNITY DEVELOPMENT

Establishment.

Membership.

83 Stat. 8 6 4.

C ompensation; travel e x p e n s e s.

80 Stat. 499; 83 Stat. 190. Functions.

[84

STAT.

CORPORATION

SEC. 729. (a) There is hereby created within the Department of Housing and Urban Development a body corporate to be known as the Community Development Corporation which shall carry out its functions subject to the direction and supervision of the Secretary. (b) The Corporation shall have a Board of Directors (hereinafter referred to as the "Board") which shall consist of five members as follows: (1) the Secretary, who shall be Chairman of the Board; (2) one person, to be appointed by the President by and with the advice and consent of the Senate, who shall serve at the pleasure of the President, shall be the General Manager of the Corporation, serving as its chief executive officer under the Board's general direction, and shall receive compensation at the rate provided for positions at level IV of the Executive Schedule (5 U.S.C. 5315); and (3) three persons, to be appointed by the Secretary, who shall serve at his pleasure, but not more than one such person shall be selected from among officers or employees of the Department of Housing and Urban Development. Members of the Board who are regular, full-time officers or employees of the Federal Government shall receive no additional compensation for their services as Board members. Other members shall receive for their services as members, when engaged in the performance of their duties, the per diem equivalent to the rate for level IV of the Federal Executive Salary Schedule under section 5315 of title 5 of the United States Code, Each member of the Board shall be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of such title for persons in the Government service employed intermittently. (c) The functions of the Secretary with respect to guarantees and loans in aid of new community development under this part shall be administered through the Community Development Corporation, and the Corporation shall perform such additional functions, powers, and duties as the Secretary may prescribe from time to time. PART C—DEVELOPMENT OF RATIONAL URBAN GROWTH PATTERNS STATE AND REGIONAL PLANNING

82 Stat, 5 2 6. 40 USC 4 6 1.

SEC. 735. Section 701 of the Housing Adt of 1954 is amended by adding at the end thereof the following new subsection: " (j) I n carrying out the provisions of this section relating to planning for States, regions, or other multijurisdictional areas whose development has significance for purposes of national growth and urban development objectives, the Secretary shall encourage the formulation of plans and programs which will include the studies, criteria, standards, and implementing procedures necessary for effectively guiding and controlling major decisions as to where growth should take place within such States, regions, or areas. Such plans and programs shall take account of the availability of and need for conserving land and other irreplaceable natural resources; of projected changes in size, movement, and composition of population; of the necessity for expanding housing and employment opportunities; of the opportunities, requirements, and possible locations for, new communities and largescale projects for expanding or revitalizing existing communities; and of the need for methods of achieving modernization, simplification, and improvements in governmental structures, systems, and procedures related to growth objectives. If the Secretary determines that

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User:Amire80/Meteg

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license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/

title: User:Amire80/Meteg


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PUBLIC LAW 91-609-DEC. 31, 1970

1805

activities otherwise eligible for assistance under this section are necessary to the development or implementation of such plans and programs, he may make grants in support of such activities to any governmental agency or organization of public officials which he determines is capable of carrying out the planning work involved in an effective and efficient manner and may make such grants in an amount equal to not more than 75 per centum of the cost of such activities." PART D—DEVELOPMENT OF I N N E R C I T Y AREAS PURPOSE

SEC. 740. I t is the purpose of this part to provide our cities, which urgently need to augment their inventories of housing (particularly housing for low and moderate income families) and to find sites for essential public facilities and additional sources of employment, but have virtually no vacant land upon which to build, with a program which will make possible the more rational use of urban land and space that is currently occupied by industrial or commercial uses which though not physically blighted are functionally obsolete or uneconomic, or of land and space that is not usable in its present state because of natural hazards or inadequate development, so that in appropriate cases major rebuilding projects (including new communities in town) may be undertaken without major residential clearance activities and with minimal displacement. AMENDMENTS TO TITLE I OF THE H O U S I N G ACT OF 1949

SEC. 741. (a) The proviso in section 103(a)(1) of such Act is 63 Stat. 4i6; amended by inserting after "open land" the following: "(other than 42 USC 1453. land within the purview of section 110(c)(1)(v)), ". (c) Section 110(c)(7) of such Act is amended to read as follows: 82^stlt?5'24!^' "(7) Construction of foundations and platforms necessary for the 42 USC i46o. development of air rights sites in accordance with the provisions of clause (iv) or (v) of paragraph (1) of this subsection." TITLE VIII—FARM HOUSING H O U S I N G A N D RELATED F A C I L I T I E S FOR DOMESTIC F A R M LABOR

SEC. 801. (a) That part of the text of subsection (a) of section 514 of the Housing Act of 1949 which precedes the first numbered para- ^s suu ^i^e^.^ graph is amended to read as follows: "The Secretary is authorized to insure and make commitments to insure loans made by lenders other than the United States to the owner of any farm or any association of farmers for the purpose of providing housing and related facilities for domestic farm labor, or to any State (or political subdivision thereof), or any broad-based public or private nonprofit organization or any nonprofit organization of farmworkers incorporated within the State for the purpose of providing housing and related facilities for domestic farm labor any place within the State where a need exists. All such loans shall be made in accordance with terms and conditions substantially identical with those specified in section 502, except that—". (b) Section 110(c)(1) of such Act is amended— r s l t l f 78?°^^' (1) by inserting before the first proviso the following: ", or 42 USC u'eo. (v) land or space which is vacant, unused, underused, or inappropriately used (including infrequently used rail yards and rail storage facilities, and excessive or vacated railroad rights-ofway; air rights over streets, expressways, railroads, waterways,

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78^stT** ^°^^' 42 USC Y460. 7s Stat. 186. 42 '""^ '"" "" u s e 1484. 78 Stat. 7 9 8. 42 USC 1486.

PUBLIC LAW 91-609-DEC. 31, 1970

[84 STAT.

and similar locations; land which is occupied by functionallyobsolete nonresidential buildings or is used for low-utility purposes or is covered by shallow water or is subject to periodic flooding or consists of unused or underused slips or dock areas or other waterfront property; which land or space the Secretary determines may be developed (at a cost reasonably related to the public purpose to be served) without major residential clearance activities, and with full consideration to the preservation of beneficial aspects of the urban and natural environment, for such uses as are consistent with emphasis on housing for low- and moderateincome families, including the provision of schools, hospitals, parks, and other essential public facilities, and, where appropriate, all uses associated with new communities in town or similar large scale undertakings related to inner city needs, including concentrated sources of employment"; and ^^^ • ^^ striking "clauses (iii) and _(iv)" in the first proviso and inserting in lieu thereof "clauses (iii), (iv), and (v)^'. (b) Section 514(a) of such Act is amended by striking out in paragraph (2) "5 per centum" and inserting in lieu thereof "1 per centum". (c) Paragraphs (1) and (2) of section 514(f) j and paragraph (1) of section 516(g) are amended by inserting "(including household furnishings)" after "structures", each place the term appears. (d) Section 516 of such Act is amended— (1) by striking out that part of the text of subsection (a)_ which precedes the first numbered paragraph and inserting in lieu thereof the following: "Upon the application of any State or political subdivision thereof, or any broad-based public or private nonprofit organization incorporated within the State, or any nonprofit organization of farmworkers incorporated within the State, the Secretary is authorized to provide financial assistance for the provision of low-rent housing and related facilities (which may be located any place within the State) for domestic farm labor, if he finds that—"; (2) by striking out in paragraph (2) of subsection (a) "onethird" and inserting in lieu thereof "10 per centum"; (3) by inserting after "thereof" in paragraph (3) of subsection (a) the following: ", and such housing and facilities shall be durable and suitable for year-around occupancy or use, unless the Secretary finds that there is no need tor such year-around occupancy or use in that area;" and (4) by striking out in subsection (b) "two-thirds" and inserting in lieu thereof "90 per centum". RURAL H O U S I N G LOANS ON N O N F A R M LEASEHOLDS

75 Stat. 186. 42 USC 1471.

SEC. 802. Section 501(b)(2) of the Housing Act of 1949 is amended by striking out "this title, the terms 'owner, 'farm', and 'mortgage' shall be deemed to include, respectively, the lessee of, the land included in" and inserting in lieu thereof the following: "sections 502 and 504, the terms 'owner' and 'mortgage' shall be deemed to include, respectively, the lessee of". MISCELLANEOUS FARM HOUSING

63^stat^. 434; 42 USC 1474.

AMENDMENTS

SEC. 803. (a) The second sentence of section 504(a) of the Housing A.ct of 1949 is amended by striking out "in excess of $1,500" and inserting in lieu thereof "in excess of $2,600, or in excess of such larger amount not exceeding $3,500 as the Secretary determines to be necessary in the case of repairs or improvements involving water supply, septic tank, or bathroom or kitchen plumbing facilities".

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PUBLIC LAW 91^09-DEC. 31, 1970

1807

(b) Section 508(b) of such Act is amended by striking out "shall" "usc^'ms' wherever it appears in the first and second sentences and inserting in lieu thereof "may". (c) Section o l 5 (b)(l) of such Act is amended by striking out 76stat. 67i; "$300,000" and inserting in lieu thereof "$750,000". ^^fus Jf485. (d) Section 517(j)(3) of such Act is amended by inserting after 79 Stat. 499.' "collections" the following: "or necessary to obtain credit reports 42 USC i487. on applicants or borrowers". (e) Section 520 of such Act is amended by striking out "5,500" and ^^ ^tau 50^2^ inserting in lieu thereof "10,000".

TITLE IX—MISCELLANEOUS L I A B I L I T Y OF F N M A TO UNITED

STATES

SEC. 901. (a) I n accordance with the provisions of section 303(a) of the National Housing Act concerning payment of a prescribed part of the general surplus and reserves of the corporation, the Federal National Mortgage Association shall pay to the Secretary of the Treasury $52,386,117. (b) I n accordance with the provisions of section 309(c) of the National Housing Act as it existed prior to September 1, 1968, the Federal National Mortgage Association shall pay to the Secretary of the Treasury the remaining income tax equivalent of $16,479,604, plus interest (1) on $2,977,442 at the rate of 6 per centum from September 16, 1967, until the date of payment; (2) on $13,442,424 at the rate of 6 per centum from September 16, 1968, until the date of payment; and (3) on $59,738 at 6 per centum from November 16, 1968, until the date of payment. (c) The receipt by the Secretary of the Treasury of the amounts required to be paid by subsections (a) and (b) of this section shall constitute a full and final settlement of all matters affected by such subsections. The United States shall be made a party defendant in any case against any person who is, has been, or may be a director, officer, employee, or agent of the Federal National Mortgage Association because of any action taken pursuant to subsection (a) or (b) of this section, and any judgment awarded the Federal National Mortgage Association shall be paid in the same manner as a judgment against the United States. (d) Section 302(a) of the National Housing Act, as amended, is further amended by adding at the end thereof the following new paragraph: "(3) The partition transaction effected pursuant to the foregoing paragraph constitutes a reorganization within the meaning of section 3 6 8 (a)(1)(E) of the Internal Revenue Code of 1954; and for the purposes of such Code, no gain or loss is recognized by the previously existing body corporate by reason of the partition, and the basis and holding period of the assets of the corporation immediately following such partition are the same as the basis and holding period of such assets immediately prior to such partition." (e) Section 810(a) of the Housing and Urban Development Act of 1968 is amended by adding at the end thereof the following sentence: "For the purposes of the Internal Revenue Code of 1954, no gain or loss is recognized by the holders of such stock on such change, and the basis and holding period of such stock in the hands of the stockholders immediately after such change are the same as the basis and holding period of such stock in their hands immediately prior to such change."

82^ltrt^5'3V^' 12 USC 1718. Jncome tax, pay12 USC 1723a.

82^stat^5'36^^' 12 USC 1717.

siljlc^iesf'

^2 Stat. 545. note."^^ ^7i6h 68A Stat. 3. ^^ ^^^ ^'

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PUBLIC LAW 91-609-DEC. 31, 1970 P U R C H A S E OF F N M A

68 Stat. 613; 75 Stat. 176; 79 Stat. 5 0 1. 12 USC 1718

SO Stat. 8 8 8. 42 USC 1430. 48 Stat. 1246. 12 USC 1701 and note. Appropriation.

50 Stat. 8 8 8. 42 USC 1402.

STAT.

STOCK

SEC. 902. Section 303(b) of the National Housing Act is amended— (1) by striking out "shall accumulate" and inserting in lieu thereof "may accumulate"; (2) by striking out "and other"; (3) by striking out "nor less than 1 per centum"; and (4) by inserting "with the approval of the Secretary of Housing and Urban Development" immediately after "as determined from time to time by the corporation". ADVICE

82 Stat. 490. 12 USC 1701X.

[84

AND

ASSISTANCE W I T H RESPECT TO H O U S I N G MODERATE-INCOME F A M I L I E S

FOR

LOW-

AND

SEC. 903. (a) Subsection (a) of section 106 of the Housing and Urban Development Act of 1968 is amended to read as follows: " (a)(1) The Secretary is authorized to provide, or contract with public or private organizations to provide, information, advice, and technical assistance, including but not limited to— "(i) the assembly, correlation, publication, and dissemination of information with respect to the construction, rehabilitation, and operation of low- and moderate-income housing; "(ii) the provision of advice and technical assistance to public bodies or to nonprofit or cooperative organizations with respect to the construction, rehabilitation, and operation of low- and moderate-income housing, including assistance with respect to self-help and mutual self-help programs; "(iii) counseling on household management, self-help, budgeting, money management, child care, and related counseling services which would assist low- and moderate-income families receiving assistance under the United States Housing Act of 1937 or the National Housing Act in improving their living conditions and housing opportunities, and in meeting the responsibilities of homeownership. "(2) There is authorized to be appropriated for the purposes of this subsection, without fiscal year limitation, not to exceed $5,000,000. Any amounts so appropriated shall remain available until expended." (b) The first sentence of section 106(b)(1) of such Act is amended by striking out "any federally assisted program" and inserting in lieu thereof "section 235 of the National Housing Act or any other federally assisted program". (c) Section 2(6) of the United States Housing Act of 1937 is amended by adding at the end thereof the following: "The term also means the financing of tenant programs and services for families residing in low-rent housing projects, particularly where there is maximum feasible participation of the tenants in the development and operation of such tenant programs and services. As used in this paragraph, the term 'tenant programs and services' includes the development and maintenance of tenant organizations which participate in the management of low-rent housing projects; the training of tenants to manage and operate such projects and the utilization of their services in project management and operation; counseling on household management, housekeeping, budgeting, money management, child care, and similar matters; advice as to resources for job training and placement, education, welfare, health, and other community services; services which are directly related to meeting tenant needs and providing a wholesome living environment; and referral to appropriate agencies when necessary for the provision of such services. To the

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PUBLIC LAW 91-609-DEC. 31, 1970

maximum extent available and appropriate, existing public and private agencies in the community shall be used for the provision of such services." (d) Section 15(10) of the United States Housing Act of 1937 is 1 1

repealed.

TRAIXING IN HOUSING MANAGEMENT

SEC. 904. Section 803 of the Housing Act of 1964 is amended by redesignating subsections (b) and (c) as subsections (c) and (d), respectively, and inserting after subsection (a) a new subsection as follows: "(b) Grants may be made under subsection (a) to support (1) the training of persons, especially persons of low income, in acquiring the skills needed in the management of housing for low- and moderateincome persons, and (2) research and the dissemination of information with respect to the problems involved in the management of housing for low- and moderate-income persons.''

1809'

R«P««I82 Stat. 503* 42 USC 1415. 83 Stat. 393. 20 USC 803.

GENERAL ADMINISTRATIVE POWERS OF THE SECRETARY

SEC. 905. Section 7 of the Department of Housing and Urban Development Act is amended by adding at the end thereof the following new subsections: " (h) Except as such authority is otherwise expressly provided in any other Act administered by the Secretary, such financial transactions of the Secretary as the making of loans or grants (and vouchers approved by the Secretary in connection with such financial transactions) shall be final and conclusive upon all officers of the Government. Funds made available to the Secretary pursuant to any provision of law for such financial transactions shall be deposited in a checking account or accounts with the Treasurer of the United States. Such funds and any receipts and assets obtained or held by the Secretary in connection with such financial transactions shall be available, in such amounts as may from year to year be authorized by the Congress, for the administrative expenses of the Secretary in connection with such financial transactions. Notwithstanding the provisions of any other law, the Secretary may, with the approval of the Comptroller General, consolidate into one or more accounts for banking and checking purposes all cash obtained or held in connection with such financial transactions, including amounts appropriated, from whatever source derived. " (i) Except as such authority is otherwise expressly provided in any other Act administered by the Secretary, the Secretary is authorized to— "(1) foreclose on any property or commence any action to protect or enforce any right conferred upon him by any law, contract, or other agreement, and bid for and purchase at any foreclosure or any other sale any property in connection with which he has made a loan or grant. I n the event of any such acquisition, the Secretary may, notwithstanding any other provision of law relating to the acquisition, handling, or disposal of real property by the United States, complete, administer, remodel and convert, dispose of, lease, and otherwise deal with, such property: Provided, That any such acquisition of real property shall not deprive any State or political subdivision thereof of its civil or criminal jurisdiction in and over such property or impair the civil rights under the State or local laws of the inhabitants on such property: Provided further, That section 3709 of the Revised Statutes shall not apply to any contract for services or

^"f®* P* 1^75.

4i use 5.

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Fees.

Gifts, acceptance.

Property, taxable status.

Moneys, investment.

Consultants.

Compensation; travel e x p e n s e s.

80 Stat. 499; 83 Stat. 190.

PUBLIC LAW 91-609-DEC. 31, 1970

[84

STAT.

supplies on account of any property so acquired or owned if the amount of such contract does not exceed $2,500; "(2) enter into agreements to pay annual sums in lieu of taxes to any State or local taxing authority with respect to any real property so acquired or owned; "(3) sell or exchange at public or private sale, or lease, real or personal property, and sell or exchange any securities or obligations, upon such terms as he may fix; "(4) obtain insurance against loss in connection with property and other assets held; "(5) consent to the modification, with respect to the rate of interest, time of payment of any installment of principal or interest, security, or any other term of any contract or agreement to which he is a party or which has been transferred to him; and " (6) include in any contract or instrument such other covenants, conditions, or provisions as he may deem necessary. "(j) Notwithstanding any other provision of law the Secretary is authorized to establish fees and charges, chargeable against program beneficiaries and project participants, which shall be adequate to cover over the long run, costs of inspection, project review and financing service, audit by Federal or federally authorized auditors, and other beneficial rights, privileges, licenses, and services. Such fees and charges heretofore or hereafter collected shall be considered nonadministrative and shall remain available for operating expenses of the Department in providing similar services on a consolidated basis. " (k)(1) The Secretary is authorized to accept and utilize voluntary and uncompensated services and accept, hold, administer, and utilize gifts and bequests of property, both real and personal, for the purpose of aiding or facilitating the work of the Department. Gifts and bequests of money and the proceeds from sales of other property received as gifts or bequests shall be deposited in the Treasury in a separate fund and shall be disbursed upon order of the Secretary. Property accepted pursuant to this paragraph, and the proceeds thereof, shall be used as nearly as possible in accordance with the terms of the gift or bequest. "(2) For the purpose of Federal income, estate, and gift taxes, property accepted under paragraph (1) shall be considered as a gift or bequest to or for use of the United States. "(3) Upon the request of the Secretary, the Secretary of the Treasury may invest and reinvest in securities of the United States or in securities guaranteed as to principal and interest by the United States any moneys contained in the fund provided for in paragraph (1). Income accruing from such securities and from any other property held by the Secretary pursuant to paragraph (1) shall be deposited to the credit of the fund and shall be disbursed upon order of the Secretary. "(1) The Secretary is authorized to appoint, without regard to the civil service laws, such advisory committees as shall be appropriate for the purpose of consultation with and advice to the Department in performance of its functions. Members of such committees, other than those regularly employed by the Federal Government, while attending meetings of such committees or otherwise serving at the request of the Secretary, may be paid compensation at rates not exceeding those authorized for individuals under subsection (e) of this section, and while so serving away from their homes or regular places of business, may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code, for persons in the Government service employed intermittently.*'

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PUBLIC LAW 91^09-DEC. 31, 1970 INCREASED FEES FOR C O N S U L T A N T

1811

SERVICES

SEC. 906. Section 7(e) of the Department of Housing and Urban Development Act is amended by striking out everything after the ^9 Stat. 669. word "rates" and inserting in lieu thereof the following: "for individuals not to exceed the per diem equivalent to the highest rate for grade GS-18 of the General Schedule under section 5332 of title 5, United States Code." Ante, p. i98-1. SAVINGS A N D LOAN

ASSOCIATIONS

SEC. 907. (a) Section 12(b) of the Federal Home Loan Bank Act (12 U.S.C. 1432(b)) is amended by adding at the end a new sentence §2 Stat. 609. as follows: "This authority extends to the acquisition, holding, and disposition of loans, or interests therein, having the benefit of any guaranty under section 221 or 222 of the Foreign Assistance Act of 1961, as amended by section 105 of the Foreign Assistance Act of 83 Stat. 807. 1969 or as hereafter amended or extended, or of any commitment or 218^2.^^*^ ^^^^' agreement for any such guaranty." (b) Section 5(c) of the Home Owners' Loan Act of 1933 (12 U.S.C 1464(c)) is amended by inserting after the period following "section 48 Stat. 132; 224 of such Act, or any commitment or agreement with respect to such ^^ ^*^** ^°^* loans, or interests therein, made pursuant to either of such sections" a new sentence as follows: "This authority extends to the acquisition, holding, and disposition of loans, or interests therein, having the benefit of any guaranty under section 221 or 222 of the Foreign Assistance Act of 1961, as amended by section 105 of the Foreign Assistance Act of 1969 or as hereafter amended or extended, or of any commitment or agreement for any such guaranty." (c) The first sentence of section 5(c) of the Home Owners' Loan Act of 1933 is amended by striking out "15" and inserting in lieu thereof "20". F I N A N C I A L INSTITUTIONS SUPERVISORY ACT OF 19 6(5

SEC. 908. Title IV of the Financial Institutions Supervisory Act of 1966 (80 Stat. 1056) is repealed.

Repeal.

I N T E R S T A T E L A N D S A L E S F U L L DISCLOSURE ACT

SEC. 909. Section 1406(5) of the Interstate Land Sales Full Disclosure Act is amended by inserting after the first comma the following: "the existence of any unusual conditions relating to noise or safety which affect the subdivision and are known to the developer,".

^^ st^a^ 593. 15 USC 1705. """ ' ""

E L I G I B I L I T Y OF AMERICA N SAMOA B A N K S FOR FEDERAL DEPOSIT INSURANCE

SEC. 910. (a) Subsection (a) of section 3 of the Federal Deposit Insurance Act, as amended (12 U.S.C. 1813 (a)), is further amended by inserting the words American Samoa," after the word "Guam," each place it appears therein. (b) Subsection (d) of section 3 of the Federal Deposit Insurance Act, as amended (12 U.S.C. 1813(d)), is further amended by inserting the words "American Samoa," after the word "Guam,". (c) Subsection (e) of section 3 of the Federal Deposit Insurance Act, as amended (12 U.S.C. 1813 (e)), is further amended by inserting the words "American Samoa," after the word "Guam,". (d) Paragraph (5) of subsection (1) of section 3 of the Federal Deposit Insurance Act, as amended (12 U.S.C. 1813(1)(5)), is further amended by inserting the words "American Samoa," after the word "Guam,". 47-348 O - 72 - 31 (Pt. 2)

^4 Stat. 873;

74 Stat. 546.

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 1812 64 Stat. 873; 70 Stat. 908.

74 Stat. 547.

PUBLIC LAW 91-609-DEC. 31, 1970

[84 STAT.

(e) Subsection (m) of section 3 of the Federal Deposit Insurance Act, RS amended (12 U.S.C. 1813 (m)), is further amended by insertjj^g ^j^g words "of American Samoa," after the word "Guam,". (f) Subsection (o) of section 3 of the Federal Deposit Insurance Act, as amended (12 U.S.C. 1813 (o)), is further amended by inserting the words "American Samoa," after the word "Guam,". (g) Paragraph (4) of subsection (a) of section 7 of the Federal Deposit lusurance Act, as amended (12 U.S.C. 1817(a)(4)), is further amended by inserting the words "American Samoa," after the word "Guam,". (h) Subparagraph (B) of paragraph (5) of subsection (b) of section 7 of the Federal Deposit Insurance Act, as amended (12 U.S.C. 1817(b)(5)(B)), is further amended by inserting the words "American Samoa," after the word "Guam,". SURETY BOND GUARANTEES

_^_^^*A*-.482. 15 USC 692.

SEC. 911. (a) Title IV of the Small Business Investment Act of 1958 is amended—_ (1) by striking out the title heading and inserting in lieu thereof the following: "TITLE IV—GUAKANTEES " P A R T A—LEASE GUARANTEES";

(2) by striking out "this title", wherever it appears in sections 401 and 402, and inserting in lieu thereof "this part"; esulTiihrnLt""^' (3) by amending section 403 thereof to read as follows: "SEC. 403. There is hereby established a revolving fund for use by the Administration in carrying out the provisions of this part and part B of this title. Initial capital for such fund shall consist of not to exceed $10,000,000 transferred from the fund established under section ^c f!^!^'}o^' 4(^) ^^ ^^^ Small Business Act: Provided, That the last sentence of 15 USC 633. ic „or. ^o, such section 4(c) shall not apply to any amounts so transferred. Into the fund established by this section there shall be deposited all receipts from the guarantee programs authorized by this title. Moneys in such fund not needed for the payment of current operating expenses or for the payment of claims arising under such programs may be invested in bonds or other obligations of, or bonds or other obligations guaranteed as to principal and interest by, the United States; except that moneys provided as initial capital for such fund shall not be so invested but shall be returned to the fund established by section 4(c) of the Small Business Act, in such amounts and at such times as the Administration determines to be appropriate, whenever the level of the fund herein established is sufficiently high to permit the return of such moneys without danger to the solvency of the programs under this title. The Administration shall pay into miscellaneous receipts of the Treasury, as of the close of each fiscal year, interest on the net outstanding disbursements of the initial capital from the fund, at rates determined by the Secretary of the Treasury, taking into consideration the average yield on outstanding long-term, interest-bearing marketable public debt obligations of the United States as of the month of June preceding such fiscal year."; and (4) by adding at the end thereof the following:

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" P A R T B — S U R E T Y BOND GUARANTEES "DEFINITIONS

"SEC. 410. As used in this part— " (1) The term 'bid bond' means a bond conditioned upon the bidder on a contract entering into the contract, if he receives the award thereof, and furnishing the prescribed payment bond and performance bond. " (2) The term 'payment bond' means a bond conditioned upon the payment by the principal of money to persons under contract with him. "(3) The term 'performance bond' means a bond conditioned upon the completion by the principal of a contract in accordance with its terms. " (4) The term 'surety' means the person who (A) under the terms of a bid bond, undertakes to pay a sum of money to the obligee in the event the principal breaches the conditions of the bond, (B) under the terms of a performance bond, undertakes to incur the cost of fulfilling the terms of a contract in the event the principal breaches the conditions of the contract, or (C) under the terms of a payment bond, undertakes to make payment to all persons supplying labor and material in the prosecution of the work provided for in the contract if the principal fails to make prompt payment. "(5) The term 'obligee' means (A) in the case of a bid bond, the person requesting bids for the performance of a contract, or (B) m the case of a payment bond or performance bond, the person who has contracted with a principal for the completion of the contract and to whom the obligation of the surety runs in the event of a breach by the principal of the conditions of a payment bond or performance bond. "(6) The term 'principal' means (A) in the case of a bid bond, a person bidding for the award of a contract, or (B) the person primarily liable to complete a contract for the obligee, or to make payments to other persons in respect of such contract, and for wnose performance of his obligation the surety is bound under the terms of a payment or performance bond. A principal may be a prime contractor or a subcontractor. "(7) The term 'prime contractor' means the person with whom the obligee has contracted to perform the contract. "(8) The term 'subcontractor' means a person who has contracted with a prime contractor or with another subcontractor to perform a contract. "AUTHORITY OF THE ADMINISTRATION

"SEC. 411. (a) The Administration may, in consultation with the sureties. Secretary of Housing and Urban Development and upon such terms and conditions as it may prescribe, guarantee and enter into commitments to guarantee any surety against loss, as hereinafter provided, as the result of the breach of the terms of a bid bond, payment bond, or performance bond by a principal on any contract up to $500,000 in Liability, umitaamount, subject to the following conditions: "°"' <=°"ditionsi. "(1) The person who would be the principal of the bond is a small business concern. "(2) The bond is required in order for such person to bid on a contract, or to serve as a prime contractor or subcontractor thereon. "(3) Such person is not able to obtain such bond on reasonable terms and conditions without a guarantee under this section. "(4) The Administration determines that there is a reasonable

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[84 STAT.

expectation that such person will perform the covenants and conditions of the contract with respect to which the bond is required. "(5) The contract meets requirements established by the Administration for feasibility of successful completion and reasonableness of cost. "(6) The terms and conditions of any bond guaranteed under the authority of this part are reasonable in light of the risks involved and the extent of the surety's participation. "(b) Any contract of guarantee under this section shall obligate the Administration to pay to the surety a sum not to exceed 90 per centum of the loss incurred by the surety in fulfilling the terms of his contract as the result of the breach by the principal of the terms of a bid bond, performance bond, or payment bond. Fee. "(c) The Administration shall fix a uniform annual fee which it deems reasonable and necessary for any guarantee issued under this section, to be payable at such time and under such conditions as may be determined by the Administration. Such fee shall be subject to periodic review in order that the lowest fee that experience under the program shows to be justified will be placed into effect. The Administration shall also fix such uniform fees for the processing of applications for guarantees under this section as it determines are reasonable and necessary to pay administrative expenses incurred in connection therewith. Any contract of guarantee under this section shall obligate the surety to pay the Administration such portions of the bond fee as the Administration determines to be reasonable in the light of the relative risks and costs involved. 11 fc A ^nt r^ * " ( ^) The provisions of section 402 shall apply in the administration 01 this section. (b)(1) The Secretary of Housing and Urban Davelopment is authorized to take such steps and carry out such activities as he determines to be necessary or desirable to provide, either directly or by contract or other arrangement, technical assistance to any contractor or subcontractor for whom a bid, payment, or performance bond is guaranteed under part B of title IV of the Small Business Investment Ante, p. 1813. ^^QI of 1958 iu connection with any construction contract, in order to assist such contractor or subcontractor in obtaining or carrying out such contract. (2) There are authorized to be appropriated for each of the first three fiscal years ending after the date of the enactment of this Act such sums, not to exceed $1,500,000, as may be necessary to enable the Secretary to carry out his functions under paragraph (1). EQUITY SKIMMING

Penalty.

SEC. 912. Whoever, with intent to defraud, willfully engages in a pattern or practice of— (1) purchasing one- to four-family dwellings which are subject to a loan in default at time of purchase or in default within one year subsequent to the purchase and the loan is secured by a mortgage or deed of trust insured or held by the Secretary of Housing and Urban Development or guaranteed by the Veterans' Administration, or the loan is made by the Veterans' Administration, (2) failing to make payments under the mortgage or deed of trust as the payments become due, and (3) applying or authorizing the application of rents from such dwellings for his own use, shall be fined not more than $5,000 or imprisoned not more than three years, or both. This section shall apply to a purchaser of such a dwelling, or a beneficial owner under any business organization or trust

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purchasing such dwelling, or to an officer, director, or agent of any such purchaser. Nothing in this section shall apply to the purchaser of only one such dwelling. REGULATION

O F SAVINGS AND LOAN ASSOCIATIONS I N COLUMBIA

THE DISTRICT O F

SEC. 913. The Home Owners' Loan Act of 1933 is amended by adding immediately after section T the following new section: "SEC. 8. (a) Without regard to any provision of law other than this section, ana without limitation on any other power or function now or hereafter vested in or exercisable b;y the Federal Home Loan Bank Board by or under this Act or otherwise^ the Board shall, with respect to all incorporated or unincorporated building, building or loan, building and loan, or homestead associations, and similar institutions, of or transacting or doing business in the District of Columbia, or maintaining any office in the District of Columbia (other than Federal savings and loan associations), have the same powers and functions as to examination, operation, and regulation as are now or hereafter vested in or exercisable by it with respect to Federal savings and loan associations by or under section 5 of this Act or otherwise, and all of the provisions of subsection (d) of section 5 of this Act as now or hereafter m force shall be applicable with respect to such associations or institutions. "(b) Any such association or institution incorporated under the laws of, or organized in, the District of Columbia shall have in addition to any existing statutory authority such statutory authority as is from time to time vested in Federal savings and loan associations. "(c) Charters, certificates of incorporation, articles of incorporation, constitutions, bylaws, or other organic documents of associations or institutions referred to in subsection (b) of this section may, without regard to anything contained therein or otherwise, hereafter be amended in such manner and to such extent and upon such vote or votes if any as the Federal Home Loan Bank Board may by regulation or otherwise provide. " (d) Nothing herein shall cause, or permit the Federal Home Loan Bank Board to cause. District of Columbia associations to be or become Federal savings and loan associations, or require the Board to impose on District ot Columbia associations the same regulations as are imposed on Federal savings and loan associations." MATURITY o r

48 Stat. 128. ^^ ^^^ ^'*^^*

so Stat. 1028. ^2 USC i464.

CERTAIN H O M E LOAN B A N K ADVANCES TO SAVINGS A N D LOAN ASSOCIATIONS

SEC. 914. Section 11(g) of the Federal Home Loan Bank Act is amended by striking out "one year" each place it appears and inserting in lieu thereof "five years".

^4 Stat. 257. ^^ ^^^ ^'*^^*

C R I M I N A L P E N A L T Y FOR FRAUD OR FALSE STATEMENT S TO I N F L U E N C E CERTAIN I N S U R E D INSTITUTIONS A N D FEDERAL AGENCIES

SEC. 915. Section 1014 of title 18 of the United States Code is amended by striking out "or an insured State-chartered credit union" and inserting in lieu thereof "an insured State-chartered credit union, any institution the accounts of which are insured by the Federal Savings and Loan Insurance Corporation, any bank the deposits of which are insured by the Federal Deposit Insurance Corporation, any member of the Federal Home Loan Bank System, the Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation, or the Administrator of the National Credit Union Administration".

^"te.p. 1017.

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PUBLIC LAW 91-609-DEC. 31, 1970 UXPLEDGED DEPOSITS I N

48 Stat. 1255. 12 USC 1724.

82 Stat. 8 5 6.

B A N K FOR SAVINGS AND CHICAGO, I L L I N O I S

[84 STAT.

LOAN

SEC. 916. Unpledged deposits in the Bank For Savings and Loan Associations, Chicago, Illinois, maintained by any institution v^hich is a member of a Federal Home Loan Bank or is an insured institution as defined in section 401(a) of the National Housing Act, shall be considered assets for purposes of meeting the liquidity requirements of section 5A(b) of the Federal Home Loan Bank Act (12 U.S.C. 1425a (b)). INFORMATION A N D ADVICE TO N O N P R OF I T P R O J E C T

79 Stat. 668. 42 USC 3533.

12 USC 1701c note.

SPONSORS

SEC. 917. Section 4 of the Department of Housing and Urban Development Act is amended by adding at the end thereof the follovrjj-^g ^^^ subsection: " (d) There shall be in the Department an Assistant to the Secretary, designated by the Secretary, who shall be responsible for providing information and advice to nonprofit organizations desiring to sponsor housing projects assisted under programs administered by the Department." A N N U A L REPORT ON PROGRAM ADMINISTRATION A N D

8 2 Stat. 477.

ASSOCIATIONS,

MANAGEMENT

SEC. 918. Section 5 of the Housing and Urban Development Act of 1968 is amended by striking out "in the calendar year 1969 and in the calendar year 1970" and inserting in lieu thereof "in each calendar year". DISPOSITION OF S U R P L U S LAND FOR LOW A N D MODERATE I N C O M E H O U S I N G A N D RELATED F A C I L I T I E S

4o^usc"48°4b*.

SEC. 919. (a) Section 414(a) of the Housing and Urban Development Act of 1969 is amended— (1) by striking out "rental or cooperative" in the first sentence; (2) by striking out the period at the end of the first sentence and inserting after "income" the following: ", and for related public facilities and for related commercial and industrial facilities approved by the Secretary."; and (3) by inserting "235 or" between "section" and "236" in clause (C). (b) Section 414(b) of such Act is amended— (1) by striking out "rental or cooperative" in the first sentence; (2) by inserting "and related facilities" between "housing" and " to " in the first sentence; (3) by inserting "and the Administrator of General Services" after "Secretary" in the second sentence, and by striking out "has" before "approved" in the second sentence and inserting in lieu thereof "have"; and (4) by inserting "and the Committees on Government Operations" after "Currency" in the third sentence, and by striking out "he approves" in the third sentence and inserting in lieu thereof "he and the Administrator of General Services approve". SAVINGS A N D LOAN H O L D I N G

8 2 Stat. 5,9. 12 USC 17 30a.

COMPANIES

SEC. 920. Section 408(d)(4)(B) of the Savings and Loan Holding Company Amendments of 1967 is amended by inserting before the scmicolon at the end thereof the following: ": Provided, however, That with the prior written approval of the Corporation, a subsidiary

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insured institution may make a loan, discount, or extension of credit to a third party on the security of property acquired from a wholly owned affiliate service corporation. The Corporation shall grant approval of any application for approval under this subdivision if, in the opinion of the Corporation, such a loan, discount, or extension of credit would not be detrimental to the interests of savings account holders in the insured institution, or to the insurance risk of the Corporation with respect to such institution, and would not be a means of facilitating the sale of (1) property purchased from any savings and loan holding company or any affiliate thereof other than such service corporation, or (2) property heretofore owned, legally or beneficially, by any savings and loan holding company or affiliate thereof". TIMBER FOR HOUSING NEEDS

SEC. 921. Section 2(a) of the Act of April 12, 1926, as amended (16 U.S.C. 617(a)), is amended by striking out "1971" and inserting in lieu thereof "1973". Approved December 31, 1970.

82 Stat. 966.

Public Law 91-610 AN ACT DecemberSl, 1970 To extend for one additional year the authorization for programs under the [ H. R. 1940 1 ] Vocational Rehabilitation Act.

Be it enacted by the Senate and House of Representatives of the Vocational ReUnited States of America in Congress assembled, habilitation Act, SECTION 1. (a) Section 1(b)(1) of the Vocational Rehabilitation amendment" Act is amended by striking out "and" and by inserting before the ^^ Stat. 1282; period at the end thereof the following:", and for the fiscal year ending 29 USC 31'. June 30, 1972, the sum of $700,000,000". (b) Section 1(b)(2) of such Act is amended by striking out "and" and by inserting before the period at the end thereof the following: ", and for the fiscal year ending June 30, 1972, the sum of $10,000,000". (c) Section 1(b)(3) of such Act is amended by striking out "and" where it appears after "$115,000,000," and by inserting before the period at the end thereof the following: ", and for the fiscal year ending June 30, 1972, the sum of $140,000,000". (d) Section 1(b)(4) of such Act is amended by striking out "1972" and inserting "1973". SEC. 2. Section 4(a) of the Vocational Rehabilitation Act is 29 USC 34. amended by striking out "1972" and inserting "1973" in lieu thereof. SEC. 3. (a) Section 12(i) of the Vocational Rehabilitation Act is 29 USC 4la. amended by striking out "and" where it appears before "$30,000,000", and by inserting the following before the semicolon which follows "1971": ", and $30,000,000 for the fiscal year ending June 30, 1972". (b) Such section is further amended by striking out "1973", and inserting "1974" in lieu thereof. SEC. 4. (a) Section 13(a)(1) of the Vocational Rehabilitation Act is 29 USC 4ib. amended by striking out "1971", and inserting "1972" in lieu thereof. (b) Section 13(f) of such Act is amended by striking out "and" where it appears after "1970," and by inserting "and $30,000,000 for the fiscal year ending June 30, 1972," immediately after "1971,". SEC. 5. Section 15(a)(2) of the Vocational Rehabilitation Act is 29 USC 42-1. amended by inserting "$100,000,000 for the fiscal year ending June 30, 1972," immediately after "1971,". Approved December 31, 1970.

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PUBLIC LAW 91-611-DEC. 31, 1970

[84 STAT.

Public Law 91-611 December 31, 1970

AN ACT

LH.R. 19877]— Authorizing the construction, repair, and preservation of certain public works on rivers and harbors for navigation, flood control, and for other purposes.

Be It enacted by the Senate and House of Representatives and'Fro*^od"co" tror ^^'^'Sttttes of America in Congress assembled.

of the

a c t s, 1970.

TITLE I—RIVERS AXD HARBORS

59 Stat. 10.

SEC. 101. The following works of improvement of rivers and harbors and other waterways for navigation, flood control, and other purposes are hereby adopted and authorized to be prosecuted by the Secretary of the Army, acting through the Chief of Engineers, in accordance with the plans and subject to the conditions recommended by the Chief of Engineers in the respective reports hereinafter designated. The provisions of section 1 of the River and Harbor Act approved March 2, 1945 (Public Law Numbered 14, Seventy-ninth Qongress), shall govern with respect to projects authorized in this title; and the procedures therein set forth with respect to plans, proposals, or reports for works of improvement for navigation or flood control and for irrigation and purposes incidental thereto, shall apply as if herein set forth in full. NAVIGATIOX

Pleasant Bay, Massachusetts: House Document Numbered 91-430, at an estimated cost of $10,221,000; Baltimore Harbor and Channels, Maryland and Virginia: Chief of Engineers report dated September 21, 1970, except that not to exceed $40,000,000 is authorized for initiation and partial accomplishment of such project, and except that construction shall not be initiated until approved by the Secretary of the Army and the President; Atlantic Intracoastal Waterway Bridges, Virginia and North Carolina: Chief of Engineere report dated November 24, 1970, at an estimated cost of $11,220,000, except that construction shall not be initiated until approved by the Secretary of the Army and the President; Manteo (Shallowbag) Bay, North Carolina: House Document Numbered 91-303, at an'estimated cost of $10,769,000; Pamlico River and Morehead City Harbor, North Carolina: Report of the Chief of Engineers dated November 23, 1970, at an estimated cost of $2,642,000, except that construction shall not be initiated until approved by the Secretary of the Army and the President; Port Sutton, Tampa Harbor. Florida: House Document Numbered 91-150 maintenance; Tampa Harbor, Florida: House Document Numbered 91-401, except that not to exceed $40,000,000 is authorized for initiation and partial accomplishment of such project; after the date of enactment of this Act the Secretary of the Army, acting through the Chief of Engineers, shall maintain the Port Sutton Terminal Channel and the East Bay Channel and Turning Basin; Freeport Harbor, Texas: Chief of Engineers report dated November 23, 1970, at an estimated cost of $13,710,000, except that construction shall not be initiated until approved by the Secretary of the Army and the President; Coos Bay, Oregon: House Document Numbered 91-151, at an estimated cost of $9,100,000; Nawdliwili Harbor, Kauai, Hawaii: Chief of Engineers report dated November 24, 1970, at an estimated cost of $1,952,000, except that construction shall not be initiated until approved by the Secretary of the Army and the President.

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B E A C H EROSION

Lido Key, Florida: House Document l^umbered 91-320, at an estimated cost of $240,000; the Secretary of the Army, acting through the Chief of Engineers, is authorized to reimburse or credit local interests for work performed by them subsequent to July 1, 1968, and in accordance with the recommended plan of improvement. SEC. 102. The Secretary of the Army is hereby authorized and ^^^^"'^^^^^}°'^ '=^""' directed to cause an immediate study to be made under the direction n e l, study. of the Chief of Engineers of a navigation channel, having a depth of seventeen feet at mean low water, and a width of one hundred feet, extending a distance of approximately two and one-half miles from deep water in Saint Georges Creek, Maryland, to the Harry Lundeberg School of Seamanship at Piney Point, Maryland, and terminating in a turning basin at that location. Such project because of its immedi- Appropriation. ate and long-range value to the United States Merchant Marine and to national defense, is hereby authorized, at an estimated cost of $475,000, as determined to be feasible and justified by the Chief of Engineers and Secretary of the Army wath the approval of the President, unless within the first period of ninety calendar days of continuous session of the Congress after the date on which the report is Report to con.. submitted to it, such report is disapproved by the Congress. The s""^^^' requirements for cooperation shall include provisions that local interests shall furnish all lands, easements, and rights-of-way for construction and future maintenance of the project; hold and save the United States free from damages, and bear the cost of all spoil disposal areas. SEC. 103. The costs of operation and maintenance of the general navigation features of small boat harbor projects authorized between January 1, 1970, and December 31, 1970, under the authority of this Act, section 201 of the Flood Control Act of 1965, or section 107 of the 79 Stat. 1073. River and Harbor Act of 1960, shall be borne by the United States. 7^ "^^^^ Zff'^' SEC. 104. The proviso in section 6 of the Act of July 3, 1930, as 33 USC 577.' amended (48 Stat. 948; 33 U.S.C. 569a), is amended to read as follows: ^^ Stat. les. "Provided, That individuals so engaged may be paid at rates not to exceed the daily equivalent of the rate for GS-18 for each day of their ^"'^' P- i^s-i^services,*' SEC. 105. The civilian members of the Board on Coastal Engineering ^o^^d on coastai Research authorized by the Act of November 7, 1963 (33 U.S.C. 426-2) '^earch^'^ZX's^ may be paid at rates not to exceed the daily equivalent of the rate for tion. GS-18 for each day of attendance at Board meetings, not to exceed ^ ^^^^' ^°5* thirty days per year, in addition to the traveling and other necessary expenses connected with their duties on the Board in accordance with the provisions of 5 U.S.C. 5703 (b), (d), and 5707. so Stat. 499; SEC. 106. The Secretary of the Army is hereby authorized and ^ ^survey s!°* directed to cause surveys to be made at the following locations and subject to all applicable provisions of section 110 of the River and Harbor Act of 1950: ^^ Stat. les. Shooters Island, New York, possible removal and utilization for fill and widening of Arthur Kill. Elk River, Maryland. Stillpond Creek, Kent County, Maryland. Patapsco River, Brooklyn, Maryland. Kanawha and James Rivers, with a view to determining the advisability of providing a waterway connecting the Kanawha River, West Virginia, and James River, Virginia, by canals and appurtenant facilities. Ventura Marina to Ventura Keys, Ventura County, California. Harbors and rivers in American Samoa and the territory of Guam, in the interests of navigation, flood control, and related water resources purposes.

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