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Page:United States Statutes at Large Volume 95.djvu/431

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 405

"INCOME ELIGIBILITY FOR ASSISTED HOUSING

"SEC. 16. (a) Not more than 10 per centum of the dwelling units 42 USC I437n. which were available for occupancy under public housing annual contributions contracts and section 8 housing assistance payments contracts under this Act before the effective date of the Housing and Community Development Amendments of 1981, and which will be Ante. p. 384. leased on or after such effective date shall be available for leasing by lower income families other than very low-income families. "(b) Not more than 5 per centimi of the dwelling units which become available for occupancy under public housing annual contributions contracts and section 8 housing assistance payments contracts under this Act on or after the effective date of the Housing and Community Development Amendments of 1981 shall be available for leasing by lower income families other than very low-income families.". COST REDUCTION IN ASSISTED HOUSING

SEC. 324. Section 8 of the United States Housing Act of 1937 is 42 USC I437f. amended— (1) by inserting after the first sentence of subsection (b)(2) the following: "To increase housing opportunities for very lowincome families, the Secretary shall assure that newly constructed housing to be assisted under this section is modest in design."; (2) by adding at the end of subsection (c)(2) the following: Contract rents, "(D) Notmthstanding the foregoing, the Secretary shall limit increases, limitation. increases in contract rents for newly constructed or substantially rehabilitated projects assisted under this section to the amount of operating cost increases incurred with respect to comparable rent«d dwelling units of various sizes and types in the Same market area which are suitable for occupancy by families assisted under this section. Where no comparable dwelling units exist in the same market area, the Secretary shall have authority to approve such increases in accordance with the best available data regarding operating cost increases in rental dwelling units."; and (3) by adding at the end thereof the following: "(1) After selection of a proposal involving newly constructed or substantially rehabilitated units for assistance under this section, the Secretary shall limit cost and rent increases, except for adjustments in rent pursuant to section 8(c)(2), to those approved by the Secretary. The Secretary may approve those increases only for unforeseen factors beyond the owner's control, design chsmges required by the Secretary or the local government, or changes in financing approved by the Secretary. "(m) For the purpose of achieving the lowest cost in providing units in newly constructed projects assisted under this section, the Secretary shall give a preference in entering ihto contracts under this section for projects which are to be located on specific tracts of land provided by States or units of local government if the Secretary determines that the tract of land is suitable for such housing, and that affording such preference will be cost effective. "(n) In msJdng assistance available under subsection (e)(5) and subsection (i), the Secretary may provide assistance with respect to residential properties in which some or all of the dwelling units do not contain bathroom or kitchen facilities, if—

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Page:United States Statutes at Large Volume 95.djvu/432

 95 STAT. 406

Waiver Ante, p. 400.

PUBLIC LAW 97-35—AUG. 13, 1981 "(1) the property is located in an area in which there is a significant demand for such units, as determined by the Secretary; and (2) the unit of general local government in which the property is located and the local public housing agency approve of such units being utilized for such purpose. The Secretary may waive, in appropriate cases, the limitation and preference described in the second and third sentences of section 3(b)(3) with respect to the assistance made available under this subsection.". AID FOR ELIGIBLE FAMILIES

42 USC I437f.

Ante, p. 384.

12 USC 1720.

SEC. 325. Section 8 of the United States Housing Act of 1937 is amended— (1) by adding at the end of subsection (b)(2) the following: "Each contract to make assistance payments for newly constructed or substantially rehabilitated housing assisted under this section entered into after the date of enactment of the Housing and Community Development Amendments of 1981 shall provide that during the term of the contract the owner shall make available for occupancy by families which are eligible for assistance under this section, at the time of their initial occupancy, the number of units for which assistance is committed under the contract."; and (2) by inserting after "nonhandicapped persons" in the second sentence of subsection (c)(5) the following: "which are not subject to mortgages purchased under section 305 of the National HousingAct". MISCELLANEOUS HOUSING ASSISTANCE PROVISIONS

42 USC 1437f.

Survey. 42 USC 1437f note.

Report to Congress.

Regulations. 42 USC 1437f note.

SEC. 326. (a) Section 8(c) of the United States Housing Act of 1937 is amended by adding at the end thereof the following: "(8) Each contract under this section shall provide that the owner will notify tenants at least 90 days prior to the expiration of the contract of any rent increase which may occur as a result of the expiration of such contract.". (b)(1) Within one year after the date of enactment of this Act, the Secretary of Housing and Urban Development shall conduct a survey to determine the number of projects which are assisted under section 8 of the United States Housing Act of 1937 and are owned by developers or sponsors with five-year annual contributions contracts who plan to withdraw from the section 8 program when their contracts expire and who will increase rents in those projects to levels that the current residents of those projects will not be able to afford. Where such survey indicates that an owner intends to withdraw from the program, the Secretary shall notify affected residents of possible rent increases. (2) Not later than one year after the date of the enactment of this Act, the Secretary shall transmit to the Congress a report indicating alternative methods which may be utilized for recapturing the cost to the Federal Government of front-end investment in those units which are removed from the section 8 program. (c) The Secretary of Housing and Urban Development, after consultation with the Attorney General, shall develop regulations to prevent possible conflicts of interest on the part of Federal, State, and local government officials with regard to participation in projects assisted under section 8 of the United States Housing Act of 1937, and

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Page:United States Statutes at Large Volume 95.djvu/433

 PUBLIC LAW 97-35—AUG. 13, 1981 shall make such r^ulations effective not later than 180 days after the date of enactment of this Act. (d)(1) The Secretary of Housing and Urban Development shall permit public housing agencies to retain, out of judgments obtained by them in recovering amounts wrongfully paid as a result of fraud and abuse in the housing assistance program under section 8 of the United States Housing Act of 1937, an amount equal to the greater of (A) the legal expenses incurred in obtaining such judgments, or (B) 50 per centum of the amount actually collected on the judgments. (2) The Secretary of Housing and Urban Development shall include in the annual report under section 8 of the Department of Housing and Urban Development Act a summary of cases brought to ite attention by public housing authorities for prosecution or civil action, and shall describe the handling of such cases by such authorities and by the Department of Housing and Urban Development and the resolution of such cases in the court system. (e)(1) Section 8(d)(l)(B) of the United States Housing Act of 1937 is amended to read as follows: "(B)(i) the lease between the tenant and the owner shall be for at least one year or the term of such contract, whichever is shorter, and shall contain other terms and conditions specified by the Secretary; and "(ii) the owner shall not terminate the tenancy except for serious or repeated violation of the terms and conditions of the lease, for violation of applicable Federal, State, or local law, or for other good cause;". (2) The amendment made by paragraph (1) shall apply with respect to leases entered into on or after October 1, 1981.

95 STAT. 407

42 USC 1437f note. 42 USC 1437f.

42 USC 1437f note.

RENT SUPPLEMENTS

SEC. 327. (a) Section 101(1) of the Housing and Urban Development Act of 1965 is amended to read as follows: 12 USC 1701s. "(1) Notwithstanding the provisions of subsection (a) and any other provision of law, the Secretary may utilize additional authority under section 5(c) of the United States Housing Act of 1937 made available 94 Stat. 1624. by appropriation Acts on or after October 1, 1979, to supplement 42 USC 1437c. assistance authority available under this section.". (b) The second sentence of section 101(d) of such Act is repealed. SECTION 235 AMENDMENTS

SEC. 328. (a) Section 235(c)(2)(A) of the National Housing Act is 94 Stat. 1630. amended by striking out "ceases for a period of 90 continuous days or 12 USC 1715z. more making payments required under the mortgage, loan, or advance of credit secured by such a property, or". (b) Section 235(h)(l) of such Act is amended by adding the following new sentences at the end thereof: "The Secretary shall not enter into new contracts for assistance payments under this section after March 31, 1982, except pursuant to a firm commitment issued on or before March 31, 1982, or pursuant to other commitments issued by the Secretary prior to June 30, 1981, reserving funds for housing to be assisted under this section where such housing is included in a project pursuant to section 119 of the Housing and Community Development Act of 1974. In no event may the Secretary enter into any new 42 USC 5318 contract for assistance payments under this section after September 30, 1983.".

89-194 O—82

28:QL3

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Page:United States Statutes at Large Volume 95.djvu/434

 95 STAT. 408 94 Stat. 1631. 12 USC 1715z.

PUBLIC LAW 97-35—AUG. 13, 1981 (c) Section 235(q)(14) of such Act is amended by striking out "ceases for a period of 90 continuous days or more making payments on the mortgage, loan, or advance of credit secured by the property, or". RESTRICTION ON USE OF ASSISTED HOUSING

94 Stat. 1637. 42 USC 1436a.

SEC. 329. (a) Section 214 of the Housing and Community Development Act of 1980 is amended to read as follows: "RESTRICTION O N U S E O P ASSISTED HOUSING

Resident aliens.

94 Stat. 103. 94 Stat. 105.

94 Stat. 107.

94 Stat. 107. "Financial assistance." 42 USC 1437 note. 12 USC 1715z, 1715Z-1. 12 USC 1701s, 42 USC 1451. 42 USC 1436a note. 94 Stat. 107.

Supra.

"SEC. 214. (a) Notwithstanding any other provision of law, the Secretary of Housing and Urban Development may not make financial assistance available for the benefit of any alien unless that alien is a resident of the United States and is— "(1) an alien lawfully admitted for permanent residence as an immigrant as defined by sections 101(a)(15) and 101(a)(20) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15) and 8 U.S.C. 1101(a)(20)), excluding, among others, alien visitors, tourists, diplomats, and students who enter the United States temporarily with no intention of abandoning their residence in a foreign country; "(2) an alien who entered the United States prior to June 30, 1948, or such subsequent date as is enacted by law, has continuously maintained his or her residence in the United States since then, and is not ineligible for citizenship, but who is deemed to be lawfully admitted for permanent residence as a result of an exercise of discretion by the Attorney General pursuant to section 249 of the Immigration and Nationality Act (8 U.S.C. 1259); "(3) an alien who is lawfully present in the United States pursuant to an admission under section 207 of the Immigration and Nationality Act (8 U.S.C. 1157) or pursuant to the granting of asylum (which has not been terminated) under section 208 of such Act (8 U.S.C. 1158); "(4) an alien who is lawfully present in the United States as a result of an exercise of discretion by the Attorney General for emergent reasons or reasons deemed strictly in the public interest pursuant to section 212(d)(5) of the Immigration and Nationality Act (8 U.S.C. 1182(d)(5)); or "(5) an alien who is lawfully present in the United States as a result of the Attorney General's withholding deportation pursuant to section 243(h) of the Immigration and Nationality Act (8 U.S.C. 1253(h)). "(b) For purposes of this section the term 'financial assistance' means financial assistance made available pursuant to the United States Housing Act of 1937, section 235 or 236 of the National Housing Act, or section 101 of the Housing and Urban Development Act of 1965.". (b) An alien who is lawfully present in the United States as a result of being granted conditional entry pursuant to section 203(a)(7) of the Immigration and Nationalilty Act (8 U.S.C. 1153(a)(7)) before April 1, 1980, because of persecution or fear of persecution on account of race, religion, or political opinion or because of being uprooted by catastrophic natural calamity shall be deemed, for purposes of section 214 of the Housing and Community Development Act of 1980, to be an alien described in section 214(a)(3) of such Act.

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Page:United States Statutes at Large Volume 95.djvu/435

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 409

PAYMENT FOR DEVELOPMENT MANAGERS

SEC. 329A. The Secretary of Housing and Urban Development shall 42 USC I437j-i. develop and implement a revised fee schedule for development managers of lower income housing projects assisted under the United States Housing Act of 1987 so that the percentage limitation applica- 42 USC 1437 ble to fees chargeable in connection with smaller projects is increased note. to a minimum level which is practicable. REVIEW OF OPERATING SUBSIDY FORMULA

SEC. 329B. The Secretary of Housing and Urban Development shall review the administration of the operating subsidy program under section 9 of the United States Housing Act of 1937, including an 42 USC I437g. examination of alternative methods for distributing operating subsidies which provide incentives for efficient management, full rent collection, and improved maintenance of projects developed under the United States Housing Act of 1937. Not later than March 1, 1982, Report to the Secretary of Housing and Urban Development shall transmit a Congress. report to the Congress on the results of such review. ENERGY EFFICIENCY EFFORTS

SEC. 329C. Section 201 of the Housing and Community Development Amendments of 1978 is amended— 12 USC (1) in subsection (f)(D, by striking out "and" at the end of 1715z-la. subparagraph (B), by striking out the period at the end of subparagraph (C) and inserting in lieu thereof "; and", and by adding at the end thereof the following: "(D) an amount determined by the Secretary to be necessary to carry out a plan to upgrade the project to meet costeffective energy efficiency standards prescribed by the Secretary."; and (2) by inserting after subsection (h) the following: "(i) Notwithstanding any other provision of law, in exercising any authority relating to the approval or disapproval of rentals charged tenants residing in projects which are eligible for assistance under this section, the Secretary— "(1) shall consider whether the mortgagor could control increases in utility costs by securing more favorable utility rates, by undertaking energy conservation measures which are financially feasible and cost effective, or by taking other financially feasible and cost-effective actions to increase energy efficiency or to reduce energy consumption; and "(2) may, in his discretion, adjust the amount of a proposed rental increase where he finds the mortgagor could exercise such control.". RECOGNITION OF KANSAS DEPARTMENT OP ECONOMIC DEVELOPMENT

SEC. 329D. The Secretary of Housing and Urban Development shall permit the Kansas Department of Economic Development to participate as a public housing agency for the purposes of programs carried out under the United States Housing Act of 1937 and as a State agency for the purpose of section 883.203 of title 24 of the Code of Federal Regulations as in effect June 1, 1981.

42 USC 1437 note.

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Page:United States Statutes at Large Volume 95.djvu/436

 95 STAT. 410

PUBLIC LAW 97-35—AUG. 13, 1981 PURCHASE OF PHA OBLIGATIONS

12 USC 2294a.

12 USC 2294. 94 Stat. 1624. 42 USC 1437c.

SEC. 329E. In addition to any authority provided before October 1, 1981, the Secretary of Housing and Urban Development may, on and after October 1, 1981, enter into contracts for periodic payments to the Federal Financing Bank to offset the costs to the Bank of purchasing obligations (as described in the first sentence of section 16(b) of the Federal Financing Bank Act of 1973) issued by local public housing agencies for purposes of financing public housing projects authorized by section 5(c) of the United States Housing Act of 1937. Notwithstanding any other provision of law, such contracts may be entered into only to the extent approved in appropriation Acts, and the aggregate amount which may be obligated over the duration of such contracts may not exceed $400,000,000. There are hereby authorized to be appropriated any amounts necessary to provide for such payments. The authority to enter into contracts under this subsection shall be in lieu of any authority (except for authority provided specifically to the Secretary before October 1, 1981) of the Secretary to enter into contracts for such purposes under section 16(b) of the Federal Financing Bank Act of 1973. TENANT PARTICIPATION

12 USC 1715z-lb.

SEC. 329F. Section 202(b)(1) of the Housing and Community Development Amendments of 1978 is amended by striking out owner's action" and inserting in lieu thereof "owner's request for rent increase, conversion of residential rental units to any other use (including commercial use or use as a unit in any condominium or cooperative project), partial release of security, or major physiced alterations". FIRE S A F E T Y

94 Stat. 1625. 42 USC 1437/.

SEC. 329G. Section 14(i)(l) of the United States Housing Act of 1937 is amended by inserting the following before the period at the end of the first sentence thereof: ", especially emergency and special purpose needs which relate to fire safety standards". SECTION 8 ASSISTANCE FOR MANUFACTURED HOMES

Contracts. 42 USC 1437f.

Maximum monthly rent.

SEC. 329H. (a) Section 8(j) of the United States Housing Act of 1937 is amended to read as follows: "(j)(l) The Secretary may enter into contracts to make assistance payments under this subsection to assist lower income families by making rental assistance payments on behalf of any such family which utilizes a manufactured home as its principal place of residence. Such payments may be made with respect to the rental of the real property on which there is located a manufactured home which is owned by any such family or with respect to the rental by such family of a manufactured home and the real property on which it is located. In carrying out this subsection, the Secretary may— "(A) enter into annual contributions contracts with public housing agencies pursuant to which such agencies may enter into contracts to make such assistance payments to the owners of such real property, or "(B) enter into such contracts directly with the owners of such real property. "(2)(A) A contract entered into pursuant to this paragraph shall establish the maximum monthly rent (including maintenance and management charges) which the owner is entitled to receive for the

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Page:United States Statutes at Large Volume 95.djvu/437

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 411

space on which a manufactured home is located and with respect to which assistance payments are to be made. The maximum monthly rent shall not exceed by more than 10 per centum the fair market rental established by the Secretary periodically (but not less than annually) with respect to the market area for the rental of real property suitable for occupancy by families assisted under this paragraph. "(B) The amount of any monthly assistance payment with respect to any family which rents real property which is assisted under this paragraph, and on which is located a manufactured home which is owned by such family shall be the difference between the rent the family is required to pay under section 3(a) of this Act and the sum 42 USC I437a. of— "(i) the monthly payment made by such family to amortize the cost of purchasing the manufactured home; "(ii) the monthly utility payments made by such family, subject to reasonable limitations prescribed by the Secretary; and "(iii) the maximum monthly rent permitted with respect to the real property which is rented by such family for the purpose of locating its manufactured home; except that in no case may such assistance exceed the total amount of such maximum monthly rent. "(3)(A) Contracts entered into pursuant to this paragraph shall Maximum establish the maximum monthly rent permitted with respect to the monthly manufactured home and the real property on which it is located and rent. with respect to which assistance payments are to be made. The maximum monthly, rent shall not exceed by more than 10 per centum the fair market rental established by the Secretary periodically (but not less than annually) with respect to the market area for the rental of a manufactured home and the real property on which it is located suitable for occupancy by families assisted under this paragraph, except that the maximum monthly rent may exceed the fair market rental by more than 10 but not more than 20 per centum where the Secretary determines that special circumstances warrant such higher maximum rent. "(B) The amount of any monthly assistance payment with respect to any family which rents a manufactured home and the real property on which it is located and which is assisted under this paragraph shall be the difference between the rent the family is required to pay under section 3(a) of this Act and the sum of^ "(i) the monthly utility payments made by such family, subject to reeisonable limitations prescribed by the Secretary; and "(ii) the maximum monthly rent permitted with respect to the manufactured home and the real property on which it is located. "(4) The provisions of subsection (c)(2) of this section shall apply to the adjustments of maximum monthly rents under this subsection. "(5) Each contract entered into under this subsection shall be for a Contract terms. term of not less than one month and not more than 180 months, except that in any case in which the manufactured home park is substantially rehabilitated or newly constructed, such term may not be less than 240 months, nor more than the maximum term for a manufactured home loan permitted under section 2(b) of the National Post, p. 414. Housing Act. "(6) The Secretary may carry out this subsection without regard to whether the manufactured home park is existing, substantially rehabilitated, or newly constructed.

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Page:United States Statutes at Large Volume 95.djvu/438

 95 STAT. 412

Post, p. 416.

PUBLIC LAW 97-35—AUG. 13, 1981 "(7) In the case of any substantially rehabilitated or newly constructed manufactured home park containing spaces with respect to which assistance is made under this subsection, the principal amount of the mortgage attributable to the rental spaces within the park may not exceed an amount established by the Secretary which is equal to or less than the limitation for manufactured home parks descrioed in section 207(c)(3) of the National Housing Act, and the Secretary may increase such limitation in high cost areas in the manner described in such section. "(8) The Secretary may prescribe other terms and conditions which are necessary for the purpose of carrying out the provisions of this subsection and which are consistent with the purposes of this subsection.". HOMEOWNERSHIP AND FIRE SAFETY STUDIES

42 USC i437f.

Recommendations, transmittal to Congress.

Report to Congress.

SEC. 3291. (a)(1) The Secretary of Housing and Urban Development shall conduct a study o— f (A) the extent, if any, to which section 8(c)(7) of the United States Housing Act of 1937 has been utilized; (B) the results of any such utilization; (C) if such section has not been utilized or utilized only on a very restricted basis, the reasons why it has not been utilized more extensively; and (D) different methods by which such section could be utilized for increasing homeownership opportunities for lower income families. (2) As a result of such study, the Secretary shall, not later than January 1, 1982, transmit to the Congress recommendations regarding the establishment of a demonstration project in which the Secretary would use section 8(c)(7) of such Act for the purpose of increasing homeownership opportunities for lower income families. Such proposal shall include, but not be limited to, provisions for— (A) targeting such project so that existing housing may be preserved to the maximum extent practicable; and (B) recovering assistance in the case of resale of the property or in other appropriate cases. (b) The Secretary shall conduct a study to the extent to which lower income housing projects do not meet applicable fire safety standards and report to the Congress with respect to such study not later than one year after the date of the enactment of this Act. PART 3—PROGRAM AMENDMENTS AND EXTENSIONS FEDERAL HOUSING ADMINISTRATION EXTENSIONS

94 Stat. 1638. 12 USC 1703. 12 USC 1715h. 12 USC 1715i. 12 0 ^ ltl54.

SEC. 331. (a) Section 2(a) of the National Housing Act is amended by striking out "October 1, 1981" in the first sentence and inserting in lieu thereof "October 1, 1982". O> Section 217 of such Act is amended by striking out "September t) 30, 1981" and inserting in lieu thereof "September 30, 1982". (c) Section 221(f) of such Act is amended by striking out "September 30, 1981" in the fifth sentence and inserting in lieu thereof September 30, 1982". (d)(1) Section 235(m) of such Act is amended by striking out "September 30, 1981" and inserting in lieu thereof "September 30, 1982".

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Page:United States Statutes at Large Volume 95.djvu/439

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 413

(2) Section 235(q)(l) of such Act is amended by striking out "June 1, 94 Stat. 1631. 1981," in the fourth sentence thereof and inserting in lieu thereof 12 USC 1715z. "September 30, 1982,". (e) Section 236(n) of such Act is amended by striking out "Septem- 94 Stat. 1638. ber 30, 1981" and inserting in Heu thereof "September 30, 1982". 12 USC 1715Z-1. 12 USC 1715Z-9. (f) Section 244(d) of such Act is amended— (1) by striking out "September 30, 1981" in the first sentence and inserting in lieu thereof "September 30, 1982"; and (2) by striking out "October 1, 1981" in the second sentence and inserting in lieu thereof "October 1, 1982". (g) Section 245(a) of such Act is amended by striking out "Septem- 12 USC ber 30, 1981" and inserting in lieu thereof "September 30, 1982". 1715Z-10. (h)(1) Section 809(f) of such Act is amended by striking out "Septem- 12 USC 1748h-l. ber 30, 1981" in the second sentence and inserting in lieu thereof "September 30, 1982". (2) Section 810(k) of such Act is amended by striking out "Septem- 94 Stat. 1639. ber 30, 1981" in the second sentence and inserting in lieu thereof 12 USC 1748h-2. "September 30, 1982". (i) Section 1002(a) of such Act is amended by striking out "Septem- 12 USC 1749bb. ber 30, 1981" in the second sentence and inserting in lieu thereof "September 30, 1982". (j) Section 1101(a) of such Act is amended by striking out "Septem- 12 USC 1749aaa. ber 30, 1981" in the second sentence and inserting in lieu thereof "September 30, 1982". FLEXIBLE INTEREST RATES

SEC. 332. Section 3(a)(1) of Public Law 90-301 is amended by striking out "October 1, 1981" and inserting in lieu thereof "October 1, 1982'"

94 Stat. 1639. 12 USC 1709-1.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

SEC. 333. (a)(1) Section 305(c) of the Federal National Mortgage Association Charter Act is amended— (A) by striking out "and" after "1978,"; and (B) by inserting the following before the period at the end thereof:", and by $1,100,000,000 on October 1, 1981". (2) Section 305 of such Act is amended by adding the following new subsection at the end thereof: "(k) During fiscal year 1982, the Association may not enter into commitments to purchase under this section mortg£^es with an aggregate principal amount in excess of $1,973,000,000, except that the Association may not enter into commitments to purchase mortgages secured by projects which do not contain units assisted under section 8 of the United States Housing Act of 1937 with an aggregate principal amount in excess of $580,000,000.". (3) Section 306(g) of such Act is amended— (A) by inserting "(1)" after "(g)"; (B) by striking out "(1)" and "(2)" in the first sentence and inserting in lieu thereof "(i)" and "(ii)", respectively; and (C) by adding the following new paragraph at the end thereof: "(2) During fiscal year 1982, the Association may not enter into commitments to issue guarantees under this subsection in an aggregate amount in excess of $69,542,000,000.". (b)(1) In entering into commitments to purchase below-market, tandem plan mortgages during the period beginning on the date of the enactment of this Act and ending October 1, 1982, under section 305 of the Federal National Mortgage Association Charter Act, the

12 USC 1720.

Mortgage purchases.

42 USC 1437f. 12 USC 1721.

12 USC 1720 note.

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Page:United States Statutes at Large Volume 95.djvu/440

 95 STAT. 414

12 USC 1707.

PUBLIC LAW 97-35—AUG. 13, 1981 Government National Mortgage Association may enter into such commitments only with respect to multifamily projects for which firm commitments for mortgage insurance under title II of the National Housing Act have been issued. (2) The Secretary of Housing and Urban Development shall continue to process applications for mortgage insurance for multifamily projects under title II of the National Housing Act for a period of at least 90 days beginning on October 1, 1981. GENERAL INSURANCE FUND

94 Stat. 1639. 12 USC 1735c.

SEC. 334. Section 519(f) of the National Housing Act is amended by inserting the following before the period at the end thereof: ", which amount shall be increased by $126,673,000 on October 1, 1981". LIMITATION ON INSURANCE AUTHORITY

SEC. 335. Title V of the National Housing Act is amended by adding the following new section at the end thereof: "LIMITATION ON INSURANCE AUTHORITY

12 USC i735f-9.

"SEC. 531. During fiscal year 1982, the Secretary may not enter into commitments to insure under this Act loans and mortgages with an aggregate principal amount in excess of $41,000,000,000.". HOUSING FOR THE ELDERLY

12 USC l70iq.

SEC. 336. Section 202(a)(4)(C) of the Housing Act of 1959 is amended by inserting the following before the period at the end of the second sentence:, and not more than $850,848,000 may be approved in appropriation Acts for such loans with respect to fiscal year 1982". RESEARCH AUTHORIZATIONS

94 Stat. 1639.

12 USC

1701Z-1.

SEC. 337. The second sentence of section 501 of the Housing and Urban Development Act of 1970 is amended by striking out "and not to exceed $51,000,000 for the fiscal year 1981 and inserting in lieu thereof "not to exceed $51,000,000 for the fiscal year 1981, and not to exceed $35,000,000 for the fiscal year 1982". PROPERTY IMPROVEMENT AND MANUFACTURED HOME LOANS

Insurance to financial institutions. 12 USC 1703.

SEC. 338. (a) Section 2(b) of the National Housing Act is amended to read as follows: "(b)(1) No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it if the amount of such loan, advance of credit, or purchase exceeds— "(A) $17,500 ($20,000 where financing the installation of a solar energy system is involved) if made for the purpose of financing alterations, repairs and improvements upon or in connection with existing single-family structures or manufactured homes; "(B) $43,750 or an average amount of $8,750 per family unit ($50,000 and $10,000, respectively, where financing the installation of a solar energy system is involved) if made for the purpose of financing the alteration, repair, improvement, or conversion of an existing structure used or to be used as an apartment house or a dwelling for two or more families;

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 PUBLIC LAW 97-35—AUG. 13, 1981 "(C) $22,500 ($35,000 in the case of a manufactured home composed of two or more modules) if made for the purpose of financing the purchase of a manufactured home; "(D) $35,000 ($47,500 in the case of a manufactured home composed of two or more modules) if made for the purpose of financing the purchase of a manufactured home and a suitably developed lot on which to place the home; "(E) such an amount as may be necessary, but not exceeding $12,500, if made for the purpose of financing the purchase, by an owner of a manufactured home which is the principal residence of that owner, of a suitably developed lot on which to place that manufactured home, and if the owner certifies that he or she will place the manufactured home on the lot acquired with such loan within six months after the date of such loan; "(F) $15,000 per family unit if made for the purpose of financing the preservation of an historic structure; and (G) such principal amount as the Secretary may prescribe if made for the purpose of financing fire safety equipment for a nursing home, extended health care facility, intermediate health care facility, or other comparable health care facility. "(2) Because of prevailing higher costs, the Secretary may, by regulation, in Alaska, Guam, or Hawaii, increase any dollar amount limitation on manufactured homes or manufactured, home lot loans contained in this subsection by not to exceed 40 per centum. In other areas where needed to meet higher costs of land acquisition, site development, and construction of a permanent foundation in connection with the purchase of a manufactured home or lot, the Secretary may, by regulation, increase any dollar amount limitation otherwise applicable by an additional $7,500. (3) No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it if the term to maturity of such loan, advance of credit or purchase exceeds— "(A) fifteen years and thirty-two days if made for the purpose of financing alterations, repairs, and improvements upon or in connection with an existing single-family structure or manufactured home; "(B) fifteen years and thirty-two days if made for the purpose of financing the alteration, repair, improvement or conversion of an existing structure used or to be used as an apartment house or a dwelling for two or more families; "(C) twenty years and thirty-two days (twenty-three years and thirty-two days in the case of a manufactured home composed of two or more modules) if made for the purpose of financing the purchase of a manufactured home; "(D) twenty years and thirty-two days (twenty-five years and thirty-two days in the case of a manufactured home composed of two or more modules) if made for the purpose of financing the purchase of a manufactured home and a suitably developed lot on which to place the home; "(E) fifteen years and thirty-two days if made for the purpose of financing the purchase, by the owner of a manufactured home which is the principal residence of that owner, of a suitably developed lot on which to place that manufactured home; "(F) fifteen years and thirty-two days if made for the purpose of financing the preservation of an historic structure; "(G) such term to maturity as the Secretary may prescribe if made for the purpose of financing the construction of a new

95 STAT. 415

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 95 STAT. 416

Refinancing.

94 Stat. 1641. 12 USC 1713.

PUBLIC LAW 97-35—AUG. 13, 1981 structure for use in whole or in part for agricultural purposes; and "(H) such term to maturity as the Secretary may prescribe if made for the purpose of financing fire safety equipment for a nursing home, extended health care facility, intermediate health care facility, or other comparable health care facility. "(4) For the purpose of this subsection— "(A) the term 'developed lot' includes an interest in a condominium project (including any interest in the common areas) or a share in a cooperative association; "(B) a loan to finance the purchase of a manufactured home or a manufactured home and lot may also finance the purchase of a garage, patio, carport, or other comparable appurtenance; and "(C) a loan to finance the purchase of a manufactured home or a manufactured home and lot shall be secured by a first lien upon such home or home and lot, its furnishings, equipment, accessories, and appurtenances. "(5) No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it unless the obligation bears such interest, has such maturity, and contains such other terms, conditions, and restrictions as the Secretary shall prescribe, in order to make credit available for the purpose of this title. Any such obligation with respect to which insurance is granted under this section shall bear interest and insurance premium charges not exceeding (A) an amount, with respect to so much of the net proceeds thereof as does not exceed $2,500, equivalent to $5.50 discount per $100 of original face amount of a one-year note payable in equal monthly installments, plus (B) an amount, with respect to any portion of the net proceeds thereof in excess of $2,500, equivalent to $4.50 discount per $100 of original face amount of such note. The amounts referred to in clauses (A) and (B) of the preceding sentence, when correctly based on tables of calculations issued by the Secretary or adjusted to eliminate minor errors in computation in accordance with requirements of the Secretary, shall be deemed to comply with such sentence. "(6)(A) Any obligation with respect to which insurance is granted under this section may be refinanced and extended in accordance with such terms and conditions as the Secretary may prescribe, but in no event for an additional amount or term in excess of any applicable maximum provided for in this subsection. "(B) The owner of a manufactured home lot purchased without assistance under this section but otherwise meeting the requirements of this section may refinance such lot under this section in connection with the purchase of a manufactured home if the borrower certifies that the home and lot is or will be his or her principal residence within six months after the date of the loan.". (b) Section 207(c)(8) of the National Housing Act is amended by striking out "$8,000" and inserting in lieu thereof "$9,000". MORTGAGE INSURANCE FOR CONDOMINIUMS

12 USC I7l5y.

SEC. 339. (a) The first sentence of section 2340t)) of the National Housing Act is amended by inserting ", including a project in which the dwelling units are attached, semi-attached, or detached," after "multifamily project".

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 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 417

HOUSING COUNSELING

SEC. 339 A. Section 106(a)(3) of the Housing and Urban Development Act of 1968 is amended by inserting the following before the period at 12 USC I701x. the end of the first sentence: "; except that for the fiscal year 1982, there are authorized to be appropriated not to exceed $4,000,000 for such purposes". TECHNICAL AMENDMENTS

SEC. 339B. (a) The last sentence of section 207(c)(3), section 213(p), the last proviso in section 220(d)(3)(B)(iii), section 221(k), the proviso in section 231(c)(2), and section 234(j) of the National Housing Act are amended— (1) by inserting "therein" immediately after "installation" wherever it appears; and (2) by striking out "therein" before the punctuation at the end thereof. (b) Section 223(f) of such Act is amended— (1) by inserting "and" immediately after the semicolon at the end of paragraph (2)(A); and (2) by redesignating paragraph (5) as paragraph (4). (c) For purposes of paragraphs (1) and (4) of section 308(c) of the Housing and Community Development Act of 1980, the term "mobile home" and the term "manufactured home" shall be deemed to include the term "mobile homes" and the term "manufactured homes", respectively. (d)(1) The material preceding the proviso in clause (2) of the first sentence of section 234(c) of the National Housing Act is amended to read as follows: "(2) the project is or has been covered by a mortgage insured under any section (except section 213(a)(1) and (2)) of this Act or the project was approved for a guarantee, insurance, or a direct loan under chapter 37 of title 38, United States Code, notwithstanding any requirements in any such section that the project be constructed or rehabilitated for the purpose of providing rental housing:". (2) Section 318 of the Housing and Community Development Act of 1980 is repealed.

12 USC 1713, 1715e, 1715k, 1715/, 1715v, 1715y.

94 Stat. 1650. 12 USC 1715n.

Definitions. 94 Stat. 1640. 12 USC 1701 et seq., 5401 et seq. 12 USC 1715y. 12 USC 1715e. 38 USC 1801 et seq.

Repeal. 94 Stat. 1646.

LOWER COST TECHNOLOGY

SEC. 339C. The Secretary of Housing and Urban Development is authorized to develop and implement a demonstration program utilizing lower cost building technology for projects located on innercity vacant land.

12 USC 1701Z-14.

REDUCTION OF 1981 AUTHORITY

SEC. 339D. (a) Notwithstanding any other provision of law, the authorizations for appropriations for programs and activities administered by the Secretary for Housing and Urban Development in fiscal year 1981 are reduced by $5,359,000,000. (b) This section takes effect upon the date of enactment of this Act. Effective date. NATIONAL INSTITUTE OF BUILDING SCIENCES

SEC. 339E. (a) Section 809(h) of the Housing and Community Development Act of 1974 is amended by striking out "through 1982 12 USC i70lj-2. (with" and inserting in lieu thereof "through 1984 (with not more than $500,000 to be appropriated for each of the fiscal years 1982, 1983, and 1984 and with^'.

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 95 STAT. 418

PUBLIC LAW 97-35—AUG. 13, 1981

12 USC 1701J-2.

(b) Section 809(c)(4) of such Act is amended by inserting the following before the period at the end thereof: "; except that, notwithstanding any such rules and procedures as may be adopted by the Institute, the President of the United States, by and with the advice and consent of the Senate, shall appoint, as representative of the public interest, two of the members of the Board of Directors selected each year for terms commencing in that year". NEW COMMUNITIES

42 USC 4518.

SEC. 389F. Section 717(b) of the National Urban Policy and New Community Development Act of 1970 is amended by adding the following new sentence at the end thereof: "With respect to fiscal year 1982, the Secretary may not issue obligations under this section in an aggregate amount in excess of $33,250,000.". PURCHASER-BROKER ARRANGEMENT

SEC. 339G. Title V of the National Housing Act is amended by adding the following new section at the end thereof: PURCHASER-BROKER ARRANGEMENT 12 USC 1735f-10. 12 USC 1707.

"SEC. 532. In carrying out the provisions of title II of this Act with respect to insuring mortgages secured by a one- to four-family residence, the Secretary may not exclude from the principal amount which may be insured under such title any sum solely on the basis that such sum is to be paid by the purchaser to a broker who has been the purchaser's agent in the purchase of the residence, but the principal amount of the mortgage, when such sum is added, shall not exceed the limitation as to maximum mortgage amount provided in title II.". MORTGAGE INSURANCE FOR HOSPITALS

12 USC 1715Z-7.

SEC. 339H. Section 242(d)(5) of the National Housing Act is amended by adding at the end thereof the following: "This paragraph shall not limit the authority of the Secretary to approve a mortgage increase on any mortgage eligible for insurance under this paragraph at any time prior to final endorsement of the loan for insurance; except that such mortgage increase may not be approved for the cost of constructing any improvements not included in the original plans and specifications approved by the Department of Health and Human Services unless approved by the Secretary of Housing and Urban Development and by the Secretary of Health and Human Services.". PART 4-FLOOD, CRIME, AND RIOT INSURANCE FLOOD INSURANCE

94 Stat. 1639. 42 USC 4127.

42 USC 4026.

SEC. 341. (a) Section 1376(c) of the National Flood Insurance Act of 1968 is amended— (1) by Striking out "and" after "1980,"; and (2) by inserting the following before the period at the end thereof ", and not to exceed $42,600,000 for the fiscal year 1982". 03)(1) Section 1319 of the National Flood Insurance Act of 1968 is amended by striking out "September 30, 1981" and inserting in lieu thereof "September 30, 1982".

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95 STAT. 419

(2) Section 1336(a) of such Act is amended by striking out "Septem- 42 USC 4056. ber 30, 1981" and inserting in lieu thereof "September 30, 1982". (c)(1) Section 1310(a) of such Act is amended by inserting "as 42 USC 4017. described in subsection (f)" after "which shall be available". (2) Section 1310 of such Act is amended by adding the following new subsection at the end thereof: if) The fund shall be available, with respect to any fiscal year beginning on or after October 1, 1981, only to the extent approved in appropriation Acts; except that the fund shall be available for the purnose described in subsection (d)(1) without such approval.". (cD(l) Chapter I of such Act is amended by adding the following new section at the end thereof: UNDEVELOPED COASTAL BARRIERS

"SEC. 1321. (a) No new flood insurance coverage shall be provided under this title on or aiter October 1, 1983, for any new construction or substeuitial improvements of structures located on undeveloped coastal barriers which shall be designated by the Secretary of the Interior. "(b) For purposes of this section— "(1) the term 'coastal barrier* means— "(A) a depositional geolc^c feature (such as a bay barrier, tombolo, barrier spit, or beurier island) which— "(i) consists of unconsolidated sedimentary materials, "(ii) is subject to wave, tidal, and wind energies, and "(iii) protects landward aquatic habitats from direct wave attack; and "(B) all associated aquatic habitats including the adjacent wetlands, marshes, estuaries, inlets, and nearshore waters; "(2) a coastal barrier or any portion thereof shall be treated as an undeveloped coastal barrier for purposes of subsection (a) only if there are few manmade structures on the barrier or portion thereof and these structures and man's activities on the barrier do not significemtly impede geomorphic and ecological processes; and "(3) a coastal barrier which is included within the boundaries of an area established under Federal, State, or local law, or held by a qualified organization as defined in section 170(h)(3) of the Internal Revenue Code of 1954, primarily for wildlife refuge, sanctuary, recreational, or natural resource conservation purposes shall not be designated as an undeveloped coastal barrier for purposes of subsection (a). "(c) A federally insured financial institution may make loans secured by structures which are not eligible forfloodinsurance under this title by reason of subsection (a).". (2) The Secretary of the Interior shall conduct a study for the purpose of designating the undeveloped coastal barriers which will be affected by the amendment made by paragraph (1). Not later than one year after the date of enactment of this Act, the Secretary shall transmit to the Congress a report of the findings and conclusions of such study together with a proposed designation of the undeveloped coastal barriers and any recommendation regarding the definition of the term "coastal barrier" as enacted by such amendment. (e) Section 1345 of such Act is amended by adding at the end thereof the following: "(c) The Director of the Federal Emergency Management Agency shall hold any agent or broker selling or undert^ing to sell flood

42 USC 4028.

"eoastal barrier."

26 USC 170.

Study. 42 USC 4028 note. Report to Congress.

42 USC 4081.

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 95 STAT. 420

PUBLIC LAW 97-35—AUG. 13, 1981 insurance under this title harmless from any judgment for damages against such agent or broker as a result of any court action by a policyholder or applicant arising out of an error or omission on the part of the Federal Emergency Management Agency, and shall provide any such agent or broker with indemnification, including court costs and reasonable attorney fees, arising out of and caused by an error or omission on the part of the Federal Emergency Management Agency and its contractors. The Director of the Federal Emergency Management Agency may not hold harmless or indemnify an agent or broker for his or her error or omission.". CRIME AND RIOT INSURANCE

12 USC I749bbb.

12 USC i749bbb-3.

SEC. 342. (a) Section 1201(b) of the National Housing Act is amended— (1) by striking out "September 30, 1981" in paragraph (1) and inserting in lieu thereof September 30, 1982"; and (2) by striking out "September 30, 1984" in paragraph (I)(A) and inserting in lieu thereof "September 30, 1985". (b) Section 1211(b) of the National Housing Act is amended— (1) by inserting "and" at the end of paragraph (9); (2) by striking out "; and" at the end of paragraph (10) and inserting in lieu thereof a period; and (3) by striking out paragraph (11). PART 5-RURAL HOUSING AUTHORIZATIONS

94 Stat. 1667. 42 USC 1483.

42 USC 1474.

42 USC I486.

42 USC 1479. ?o f^h }^r' 42 USC 1485.

SEC. 351. (a) Section 513 of the Housing Act of 1949 is amended— (1) by striking out "not to exceed $3,797,600,000 with respect to the fiscal year ending September 30, 1981" in subsection (a) and inserting in lieu thereof "not to exceed $3,700,600,000 with • respect to the fiscal year ending September 30, 1982"; (2) by striking out "not less than $3,120,000,000" in subsection (a)(1) and inserting in lieu thereof "not less than $3,170,000,000"; (3) by striking out "not more than $100,000,000" in subsection (a)(4) and inserting in lieu thereof "none"; (4) by striking out subsection (b)(2) and inserting in lieu thereof the following: "(2) not to exceed $50,000,000 for loans and grants pursuant to section 504 for the fiscal year ending September 30, 1982, of which not more than $25,000,000 shall be available for grants;"; (5) by striking out subsection (b)(3) and inserting in lieu thereof the following: "(3) not to exceed $25,000,000 for financial assistance pursuant to section 516 for the fiscal year ending September 30, 1982;"; (6) by striking out "September 30, 1981" in subsection (b)(4) and inserting in lieu thereof "September 30, 1982"; and (7) by striking out "and" at the end of subsection 0)X4), by striking out the period at the end of subsection (b)(5) and inserting in lieu thereof "; and", and by adding at the end thereof the following: "(6) not to exceed $2,000,000 for the purposes of section 509(c) for the fiscal year ending September 30, 1982.". (b) Section 515(b)(5) of such Act is amended by striking out "September 30, 1981" and inserting in lieu thereof "(September 30, 1982*'.

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 PUBLIC LAW 97-35—AUG. 13, 1981 (c) Section 517(a)(l) of such Act is amended by striking out "September 80, 1981" and inserting in lieu thereof "September 30, 1982". (d) Section 521(a)(2)(D) of such Act is amended— (1) by striking "$493,000,000" and inserting in lieu thereof "$398,000,000"; and (2) by striking out "1981, except that" and all that follows through the period at the end thereof and inserting in lieu thereof "1982.". (e) Section 523 of such Act is amended— (1) by striking out "September 30, 1981" each place it appears in subsection (f) and inserting in lieu thereof "September 30, 1982"; (2) by striking out "not to exceed $2,500,000 for fiscal year 1981" in the first sentence of subsection (g) and inserting in lieu thereof "not to exceed $3,000,000 for fiscal year 1982"; (3) by inserting the following after "shall be available" in the second sentence of subsection (g): ", to the extent approved in appropriation Acts,"; and (4) by inserting the following before the period at the end of the second sentence of subsection (g): "; except that not more than $5,000,000 may be made available during fiscal year 1982".

95 STAT. 421 94 Stat. 42 USC 94 Stat. 42 USC

1668. 1487. 1668. 1490a.

94 Stat. 1668. 42 USC 1490c.

INTEREST SUBSIDY PROGRAM

SEC. 352. Section 521(a)(l)(B) of the Housing Act of 1949 is amended by striking out "shall" and iaserting in lieu thereof "may".

94 Stat. 1669. 42 USC 1490a.

REPORTS

SEC. 353. The Secretary of Agriculture shall transmit a report to the Congress not later than March 1, 1982, setting forth— (1) various options for presenting the budget of the Farmers Home Administration and alternatives to the use of Federal Financing Bank financing for rural housing programs; (2) workable definitions of "low income" which will target Farmers Home Administration housing assistance programs to a population substantially equivalent to the population served by the Department of Housing and Urban Development's assisted housing programs; (3) the effect of a requirement that 30 per centum of assistance provided by the Farmers Home Administration be provided to families with incomes at 50 per centum of area median income and recommendations for contribution requirements which will achieve equity with the contribution requirements of the Department of Housing and Urban Development's assisted housing programs; (4) recommendations for ensuring that subsidy levels for assisted families are minimized and that assisted families with similar circumstances in different regions of the country are treated equally; and (5) the Farmers Home Administration's efforts to minimize the cost of housing subsidized under its programs and the Farmers Home Administration's use of existing lower cost housing technology.

Transmittal to Congress.

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 95 STAT. 422 Multifamiiy Mortgage Foreclosure Act of 1981.

12 USC 3701 note.

PUBLIC LAW 97-35—AUG. 13, 1981 PART 6—MULTIFAMILY MORTGAGE FORECLOSURE SHORT TITLE

SEC. 361. This part may be cited as the "Multifamiiy Mortgage Foreclosure Act of 1981". FINDINGS AND PURPOSE

12 USC 3701.

12 USC 1707 42 USC 1452b.

SEC. 362. (a) The Congress finds that— (1) disparate State laws under which the Secretary of Housing and Urban Development forecloses real estate mor^ages which the Secretary holds pursuant to title II of the National Housing Act or section 312 of the Housing Act of 1964 covering multiunit residential and nonresidential properties burden the programs administered by the Secretary pursuant to these authorities, and cause detriment to the residents of the afTected projects and the community generally; (2) long periods to complete the foreclosure of these mortgages under certain State laws lead to deterioration in the condition of the properties involved; necessitate substantial Federal management and holding expenditures; increase the risk of vandalism, fire loss, depreciation, damsige, and waste with respect to the properties; and adversely affect the residents of the projects and the neighborhoods in which the properties are located; (3) these conditions seriously impair the Secretary's ability to protect the Federal financial interest in the affected properties and frustrate attainment of the objectives of the underlying Federal program authorities, as well as the national housing go^ of "a decent home and a suitable living environment for every American family"; (4) application of State redemption periods to these mortgages following their foreclosure would impair the salability of the properties involved and discourage their rehabilitation and improvement, thereby compounding the problems referred to in clause (3); (5) the availability of a uniform and more expeditious procedure for the foreclosure of these mortgages by the Secretary and continuation of the practice of not applying postsale redemption periods to such mortgages will tend to ameliorate these conditions; and (6) providing the Secretary with a nonjudicial foreclosure procedure will reduce unnecessary litigation by removing many foreclosures from the courts where they contribute to overcrowded calendars. (b) The purpose of this part is to create a uniform Federal foreclosure remedy for multiunit residential and nonresidentisil mortgages held by the Secretary of Housing and Urban Development pursuant to title II of the National Housing Act or section 312 of the Housing Act of 1964. DEFINITIONS

12 USC 3702.

SEC. 363. As used in this part— (1) "mortgage" means a deed of trust, mortgage, deed to secure debt, security agreement, or any other form of instrument under which any interest in property, real, personal or mixed, or any interest in property including leaseholds, life estates, reversionary interests, and any other estates under applicable State law, is

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95 STAT. 423

conveyed in trust, mortgaged, encumbered, pledged, or otherwise rendered subject to a lien, for the purpose of securing the pa3niient of money or the performance of an obligation; (2) "multifamily mortgage" means a mortgage held by the Secretary pursuant to title 11 of the National Housing Act or section 312 of the Housing Act of 1964 covering any property, 12 USC 1707. except a property on which there is located a one- to four-family ^^ use I452b. residence; (3) "mortgage agreement" meeins the note or debt instrument and the mortgage instrument, deed of trust instrument, trust deed, or instrument or instruments creating the mortgage, including any instrument incorporated by reference therein (including any applicable regulatory agreement), and any instrument or agreement amending or modifying any of the foregoing; (4) "mortgagor" means the obligor, grantor, or trustor named in the mortgage agreement and, unless the context otherwise indicates, includes the current owner of record of the security property whether or not personally liable on the mortgage debt; (5) "person" includes any individual, group of individuals, association, partnership, corporation, or organization; (6) "record" and "recorded" include "register" and "registered" in the instance of registered land; (7) "security property" means the property, real, personal or mixed, or an interest in property, including leaseholds, life estates, reversionary interests, and any other estates under applicable State law, together with fixtures and other interests subject to the lien of the mortgage under applicable State law; (8) "State" means the several States, the District of Columbia, the Commonwealth of Puerto Rico, the territories and possessions of the United States, and the Trust Territory of the Pacific Islands, and Indian tribes as defined by the Secretary; (9) "county" means county as defined in section 2 of title I, United States Code; and i use 2. (10) "Secretary" means the Secretary of Housing and Urban Development. APPLICABILITY

SEC. 364. Multifamily mortgages held by the Secretary encumber- 12 USC 3703. ing real estate located in any State may be foreclosed by the Secretary in accordance with this part, or pursuant to other foreclosure procedures available, at the option of the Secretary. DESIGNATION OF FORECLOSURE COMMISSIONER

SEC. 365. A foreclosure commissioner or commissioners designated 12 USC 3704. pursuant to this part shall have a nonjudicial power of sale as provided in this part. Where the Secretary is the holder of a multifamily mortgage, the Secretary may designate a foreclosure commissioner and, with or without cause, may designate a substitute foreclosure commissioner to replace a previously designated foreclosure commissioner, by executing a duly acknowledged, written designation stating the name and business or residential address of the commissioner or substitute commissioner. The designation shall be effective upon execution. Except as provided in section 368(b), a copy of the designation shall be mailed with each copy of the notice of default and foreclosure sale served by mail in accordance with section 369(1). The foreclosure commissioner, if a natural person, shall be a resident of the State in which the security property is located and, if

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 95 STAT. 424

PUBLIC LAW 97-35—AUG. 13, 1981 not a natural person, the foreclosure commissioner must be duly authorized to transact business under the laws of the State in which the security property is located. The foreclosure commissioner shall be a person who is responsible, financially sound and competent to conduct the foreclosure. More than one foreclosure commissioner may be designated. If a natural person is designated as foreclosure commissioner or substitute foreclosure commissioner, such person shall be designated by name, except that where such person is designated in his or her capacity as an official or employee of the government of the State or subdivision thereof in which the security property is located, such person may be designated by his or her unique title or position instead of by name. The Secretary shall be a guarantor of payment of any judgment against the foreclosure commissioner for damages based upon the commissioner's failure properly to perform the commissioner's duties. As between the Secretary and the mortgagor, the Secretary shall bear the risk of any financial default by the foreclosure commissioner. In the event that the Secretary makes any payment pursuant to the preceding two sentences, the Secretary shall be fully subrogated to the rights satisfied by such payment. PREREQUISITES TO FORECLOSURE

12 USC 3705.

SEC. 866. Foreclosure by the Secretary under this part of a multifamily mortgage may be commenced, as provided in section 368, upon the breach of a covenant or condition in the mortgage agreement for which foreclosure is authorized under the mortgage, except that no such foreclosure may be commenced unless any previously pending proceeding, judicial or nonjudicial, separately instituted by the Secretary to foreclose the mortgage other than under this part has been withdrawn, dismissed, or otherwise terminated. No such separately instituted foreclosure proceeding on the mortgage shall be instituted by the Secretary during the pendency of foreclosure pursuant to this part. Nothing in this part shall preclude the Secretary from enforcing any right, other than foreclosure, under applicable State law, including any right to obtain a monetary judgment. Nothing in this part shall preclude the Secretary from foreclosing under this part where the Secretary has obtained or is seeking any other remedy available pursuant to Federal or State law or under the mortgage agreement, including, but not limited to, the appointment of a receiver, mortgagee-in-possession status or relief under an assignment of rents. NOTICE OF DEFAULT AND FORECLOSURE SALE

12 USC 3706.

SEC. 367. (a) The notice of default and foreclosure sale to be served in accordance with this part shall be subscribed with the name and address of the foreclosure commissioner and the date on which subscribed, and shall set forth the following information: (1) the names of the Secretary, the original mortgagee and the original mortgagor; (2) the street address or a description of the location of the security property, and a description of the security property, or so much thereof as is to be offered for sale, sufficient to identify the property to be sold; (3) the date of the mortgage, the office in which the mortgage is recorded, and the liber and folio or other description of the location of recordation of the mortgage;

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95 STAT. 425

(4) the failure to make payment, including the due date of the earliest installment payment remaining wholly unpaid as of the date the notice is subscribed, or the description of other default or defaults upon which foreclosure is based, and the acceleration of the secured indebtedness; (5) the date, time, and place of the foreclosure sale; (6) a statement that the foreclosure is being conducted pursuant to this part; (7) the types of costs, if any, to be paid by the purchaser upon transfer of title; and (8) the amount and method of deposit to be required at the foreclosure sale (except that no deposit shall be required of the Secretary), the time and method of payment of the balance of the foreclosure purchase price and other appropriate terms of sale. (b)(1) Except as provided in paragraph (2)(A), the Secretary may require, as a condition and term of sale, that the purchaser at a foreclosure sale under this part agree to continue to operate the security property in accordance with the terms, as appropriate, of the loan program under section 312 of the Housing Act of 1964, the 42 USC I452b. program under which insurance under title II of the National Housing Act was originally provided with respect to such property, or 12 USC 1707. any applicable regulatory or other agreement in effect with respect to such property immediately prior to the time of foreclosure sale. (2)(A) In any case where the majority of the residential units in a property subject to such a sale are occupied by residential tenants at the time of the sale, the Secretary shall require, as a condition and term of sale, any purchaser (other than the Secretary) to operate the property in accordance with such terms, as appropriate, of the programs referred to in paragraph (1). (B) In any case where the Secretary is the purchaser of a multifamily project, the Secretary shall manage and dispose of such project in accordance with the provisions of section 203 of the Housing and Community Development Amendments of 1978. 12 USC I7i5z-ii. COMMENCEMENT OF FORECLOSURE

SEC. 368. (a) If the Secretary as holder of a multifamily mortgage 12 USC 3707. determines that the prerequisites to foreclosure set forth in section 366 are satisfied, the Secretary may request the foreclosure commissioner to commence foreclosure of the mortgage. Upon such request, the foreclosure commissioner shall commence foreclosure of the mortgage, by commencing service of a notice of default and foreclosure sale in accordance with section 369. (b) Subsequent to commencement of a foreclosure under this part, the Secretary may designate a substitute foreclosure commissioner at any time up to forty-eight hours prior to the time of foreclosure sale, and the foreclosure shall continue without prejudice, unless the substitute commissioner, in his or her sole discretion, finds that continuation of the foreclosure sale will unfairly affect the interests of the mortgagor. In the event that the substitute commissioner makes such a finding, the substitute commissioner shall cancel the foreclosure sale, or adjourn such sale in the manner provided in section 369B(c). Upon designation of a substitute foreclosure commissioner, a copy of the written notice of such designation referred to in section 365 shall be served upon the persons set forth in section 369(1) of this part (1) by mail as provided in such section 369 (except that the minimum time periods between mailing and the date of foreclosure sale prescribed in such section shall not apply to notice by mail

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PUBLIC LAW 97-35—AUG. 13, 1981 pursuant to this subsection), or (2) in any other manner, which in the substitute commissioner's sole discretion, is conducive to achieving timely notice of such substitution. In the event a substitute foreclosure commissioner is designated less than forty-eight hours prior to the time of the foreclosure sale, the pending foreclosure shall be terminated and a new foreclosure shall be commenced by commencing service of a new notice of default and foreclosure sale. SERVICE OF NOTICE OF DEFAULT AND FORECLOSURE SALE

12 USC 3708.

Newspaper

SEC. 369. The foreclosure commissioner shall serve the notice of default and foreclosure sale provided for in section 367 upon the following persons and in the following manner, and no additional notice shall be required to be served notwithstanding any notice requirements of any State or local law— (1) NOTICE BY MAIL.—The notice of default and foreclosure sale, together with the designation required by section 365, shall be sent by certified or registered mail, postage prepaid and return receipt requested, to the following persons: (A) the current security property owner of record, as the record exists forty-five days prior to the date originally set for foreclosure sale, whether or not the notice describes a sale adjourned as provided in this part; (B) the original mortgagor and all subsequent mortgagors of record or other persons who appear of record or in the mortgage agreement to be liable for part or all of the mortgage debt, as the record exists forty-five days prior to the date originally set for foreclosure sale, whether or not the notice describes a sale adjourned as provided in this part, except any such mortgagors or persons who have been released; and (C) all persons holding liens of record upon the security property, as the record exists forty-five days prior to the date originally set for foreclosure sale, whether or not the notice describes a sale adjourned as provided in this part. Notice under clauses (A) and (B) of this paragraph shall be mailed at least twenty-one days prior to the date of foreclosure sale, and shall be mailed to the owner or mortgagor at the address stated in the mortgage agreement, or, if none, to the address of the security property, or, at the discretion of the foreclosure commissioner, to any other address believed to be that of such owner or mortgagor. Notice under clause (C) of this paragraph shall be mailed at least ten days prior to the date of foreclosure sale, and shall be mailed to each such lienholder's address as stated of record or, at the discretion of the foreclosure commissioner, to any other address believed to be that of such lienholder. Notice by mail pursuant to this subsection or section 368(b) of this part shall be deemed duly given upon mailing, whether or not received by the addressee and whether or not a return receipt is received or the letter is returned. (2) PUBLICATiON.—A copy of the notice of default and foreclosure sale shall be published, as provided herein, once a week during three successive calendar weeks, and the date of last publication shall be not less than four nor more than twelve days prior to the sale date. The information included in the notice of default and foreclosure sale pursuant to section 367(a)(4) may be omitted, in the foreclosure commissioner's discretion, from the published notice. Such publication shall be in a newspaper or

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 PUBLIC LAW 97-35—AUG. 13, 1981 newspapers having general circulation in the county or counties in which the security property being sold is located. To the extent practicable, the newspaper or newspapers chosen shall be a newspaper or newspapers, if any is available, having circulation conducive to achieving notice of foreclosure by publication. Should there be no newspaper published at least weekly which has a general circulation in one of the counties in which the security property being sold is located, copies of the notice of default and foreclosure sale shall be posted in at least three public places in each such county at least twenty-one days prior to the date of sale. (8) POSTING.—A copy of the notice of default and foreclosure sale shall be posted in a prominent place at or on the real property to be sold at least seven days prior to the foreclosure sale, and entry upon the premises for this purpose shall be privileged as against all persons. If the property consists of two or more noncontiguous parcels of land, a copy of the notice of default and foreclosure sale shall be posted in a prominent place on each such parcel. If the security property consists of two or more separate buildings, a copy of the notice of default and foreclosure sale shall be posted in a prominent place on each such building. Posting at or on the premises shall not be required where the foreclosure commissioner, in the commissioner s sole discretion, finds that the act of posting will likely cause a breach of the peace or that posting may result in an increased risk of vandalism or damage to the property.

95 STAT. 427

Posting in public place.

PRESALE REINSTATEMENT

SEC. 869A. (a) Except as provided in sections 368(b) and 369B(c), the Sale cancellation foreclosure commissioner shall withdraw the security property from conditions. 12 USC 3709. foreclosure and cancel the foreclosure sale only if— (1) the Secretary so directs the commissioner prior to or at the time of sale; (2) the commissioner finds, upon application of the mortgagor at least three days prior to the date of sale, that the default or defaults upon which the foreclosure is based did not exist at the time of service of the notice of default and foreclosure sale; or (3)(A) in the case of a foreclosure involving a monetary default, there is tendered to the foreclosure commissioner before public auction is completed the entire amount of principal and interest which would be due if payments under the mortgage had not been accelerated; (B) in the case of a foreclosure involving a nonmonetary default, the foreclosure commissioner, upon application of the mortgagor before the date of foreclosure sale, finds that such default is cured; and (C) there is tendered to the foreclosure commissioner before public auction is completed all amounts due under the mortgage agreement (excluding additional amounts which would have been due if mortgage payments had been accelerated), all amounts of expenditures secured by the mortgage and all costs of foreclosure incurred for which payment from the proceeds of foreclosure is provided in section 369C, except that the Secretary shall have discretion to refuse to cancel a foreclosure pursuant to this paragraph (3) if the current mortgagor or owner of record has on one or more previous occasions caused a foreclosure of the mortgage, commenced pursuant to this part or otherwise, to be canceled by curing a default.

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PUBLIC LAW 97-35—AUG. 13, 1981 (b) Prior to withdrawing the security property from foreclosure in the circumstances described in subsection (a)(2) or (a)(3), the foreclosure commissioner shall afford the Secretary a reasonable opportunity to demonstrate why the security property should not be so withdrawn. (c) In any case in which a foreclosure commenced under this part is canceled, the mortgage shall continue in effect as though acceleration had not occurred. (d) If the foreclosure commissioner cancels a foreclosure sale under this part a new foreclosure may be subsequently commenced as provided in this part. CONDUCT OF SALE; ADJOURNMENT

12 USC 3710.

Public auction.

Written oneprice sealed bids.

SEC. 369B. (a) The date of foreclosure sale set forth in the notice of default and foreclosure sale shall not be prior to thirty days after the due date of the earliest installment wholly unpaid or the earliest occurrence of any uncured nonmonetary default upon which foreclosure is based. Foreclosure sale pursuant to this part shall be at public auction, and shall be scheduled to begin between the hours of 9 o'clock ante meridian and 4 o'clock post meridian local time on a day other than Sunday or a public holiday as defined by section 6108(a) of title 5, United States Code, or State law. The foreclosure sale shall be held at a location specified in the notice of default and foreclosure sale, which shall be a location where foreclosure real estate auctions are customarily held in the county or one of the counties in which the property to be sold is located, or at a courthouse therein, or at or on the property to be sold. Sale of security property situated in two or more counties may be held in any one of the counties in which any part of the security property is situated. (b) The foreclosure commissioner shall conduct the foreclosure sale in accordance with the provisions of this part and in a manner fair to both the mortgagor and the Secretary. The foreclosure commissioner shall attend the foreclosure sale in person, or, if there are two or more commissioners, at least one shall attend the foreclosure sale. In the event that no foreclosure commissioner is a natural person, the foreclosure commissioner shall cause its duly authorized employee to attend the foreclosure sale to act on its behalf. Written one-price sealed bids shall be accepted by the foreclosure commissioner from the Secretary and other persons for entry by announcement by the commissioner at the sale. The Secretary and any other person may bid at the foreclosure sale, including the Secretary or any other person who has submitted a written one-price bid, except that the foreclosure commissioner or any relative, related business entity or employee of such commissioner or entity shall not be permitted to bid in any manner on the security property subject to foreclosure sale. The foreclosure commissioner may serve as auctioneer, or, in accordance with regulations of the Secretary, may employ an auctioneer to be paid from the commission provided for in section 369C(5). (c) The foreclosure commissioner shall have discretion, prior to or at the time of sale, to adjourn or cancel the foreclosure sale if the commissioner determines, in the commissioner's sole discretion, that circumstances are not conducive to a sale which is fair to the mortgagor and the Secretary or that additional time is necessary to determine whether the security property should be withdrawn from foreclosure as provided in section 369A. The foreclosure commissioner may adjourn a sale to a later hour the same day without the giving of further notice, or may adjourn the foreclosure sale for not

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less than nine nor more than twenty-four days, in which case the commissioner shall serve a notice of default and foreclosure sale revised to recite that the foreclosure sale has been adjourned to a specified date and to include any corrections the foreclosure commissioner deems appropriate. Such notice shall be served by publication, mailing and posting in accordance with section 369, except that publication may be made on any of three separate days prior to the revised date of foreclosure sale, and mailing may be made at any time at least seven days prior to the date to which the foreclosure sale has been adjourned. FORECLOSURE COSTS

SEC. 369C. The following foreclosure costs shall be paid from the 12 USC 3711. sale proceeds prior to satisfaction of any other claim to such sale proceeds: (1) necessary advertising costs and postage incurred in giving notice pursuant to sections 369 and 369B; (2) mileage for posting notices and for the foreclosure commissioner's attendance at the sale at the rate provided in section 1921 of title 28, United States Code, for mileage by the most reasonable road distance; (3) reasonable and necessary costs actually incurred in connection with any necessary search of title and lien records; (4) necessary out-of-pocket costs incurred by the foreclosure commissioner to record documents; and (5) a commission for the foreclosure commissioner for the conduct of the foreclosure to the extent authorized by regulations issued by the Secretary. DISPOSITION OP SALE PROCEEDS

SEC. 369D. Money realized from a foreclosure sale shall be made 12 USC 3712. available for obligation and expenditure— (1) first to cover the costs of foreclosure provided for in section 369C; (2) then to pay valid tax liens or assessments prior to the mortgage; (3) then to pay any liens recorded prior to the recording of the mortgage which are required to be paid in conformity with the terms of sale in the notice of default and foreclosure sale; (4) then to service charges and advancements for taxes, assessments, and property insurance premiums; (5) then to the interest; (6) then to the principal balance secured by the mortgage (including expenditures for the necessary protection, preservation, and repair of the security property as authorized under the mortgage agreement and interest thereon if provided for in the mortgage agreement); and (7) then to late charges. Any surplus after payment of the foregoing shall be paid to holders of Surplus liens recorded after the mortgage and then to the appropriate Proceeds. mortgagor. If the person to whom such surplus is to be paid cannot be located, or if the surplus available is insufficient to pay all claimants and the claimants cannot agree on the allocation of the surplus, or if any person claiming an interest in the mortgage proceeds does not agree that some or all of the sale proceeds should be paid to a claimant as provided in this section, that part of the sale proceeds in question may be deposited by the foreclosure commissioner with an

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PUBLIC LAW 97-35—AUG. 13, 1981 appropriate official or court authorized under law to receive disputed funds in such circumstances. If such a procedure for the deposit of disputed funds is not available, and the foreclosure commissioner files a bill of interpleader or is sued as a stakeholder to determine entitlement to such funds, the foreclosure commissioner's necessary costs in taking or defending such action shall be deductible from the disputed funds. TRANSFER OF TITLE AND POSSESSION

iTror ^71 q use 3713.

'T^-

^^^' ^^^^' ^^^ "^^ foreclosure commissioner shall deliver a deed or deeds to the purchaser or purchasers and obtain the balance of the purchase price in accordance with the terms of sale provided in the notice of default and foreclosure sale. Qy) Subject to subsection (c), the foreclosure deed or deeds shall convey all of the right, title, and interest in the security property covered by the deed which the Secretary as holder, the foreclosure commissioner, the mortgagor, and any other persons claiming by, through, or under them, had on the date of execution of the mortgage, together with all of the right, title, and interest thereafter acquired by any of them in such property up to the hour of sale, and no judicial proceeding shall be required ancillary or supplementary to the procedures provided in this part to assure the validity of the conveyance or confirmation of such conveyance. (c) A purchaser at a foreclosure sale held pursuant to this part shall be entitled to possession upon passage of title to the mortgaged property, subject to an interest or interests senior to that of the mortgage and subject to the terms of any lease of a residential tenant for the remaining term of the lease or for one year, whichever period is shorter. Any other person remaining in possession after the sale and any residential tenant remaining in possession after the applicable period shall be deemed a tenant at sufferance. (d) There shall be no right of redemption, or right of possession based upon right of redemption, in the mortgagor or others subsequent to a foreclosure pursuant to this part. (e) When conveyance is made to the Secretary, no tax shall be imposed or collected with respect to the foreclosure commissioner's deed, whether as a tax upon the instrument or upon the privilege of conveying or transferring title to the property. Failure to collect or pay a tax of the t5rpe and under the circumstances stated in the preceding sentence shall not be grounds for refusing to record such a deed, for failing to recognize such recordation as imparting notice or for denying the enforcement of such a deed and its provisions in any State or Federal court. RECORD OF FORECLOSURE AND SALE

Deed affidavit. 12 USC 3714.

SEC. 369F. (a) To establish a sufficient record of foreclosure and gg^ig^ ^jjg foreclosure commissioner shall include in the recitals of the deed to the purchaser or prepare an affidavit or addendum to the deed stating— (1) that the mortgage was held by the Secretary; (2) the particulars of the foreclosure commissioner's service of notice of default and foreclosure sale in accordance with sections 369and369B; (3) that the foreclosure was conducted in accordance with the provisions of this part and with the terms of the notice of default and foreclosure saie;

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(4) a correct statement of the costs of foreclosure, calculated in accordance with section 369C; and (5) the name of the successful bidder and the amount of the successful bid. (b) The deed executed by the foreclosure commissioner, the foreclosure commissioner's affidavit and any other instnmients submitted for recordation in relation to the foreclosure of the security property under this part shall be acc^ted for recordation by the r e ^ t r a r of deeds or other appropriate ofncial of the county or counties in which the security property is located upon tendering of payment of the usual recording fees for such instruments. COMPUTATION OF TIME

SEC. 369G. Periods of time provided for in this part shall be calculated in consecutive calendar days including the day or days on which the actions or events occur or are to occur for which the period of time is provided and including the day on which an event occurs or is to occur from which the period is to be calculated.

12 USC 3715.

SEPARABILITY

SEC. 369H. If any clause, sentence, paragraph or part of this part 12 USC 3716. shall, for any reason, be adjudged by a court of competent jurisdiction to be invalid or invsdid as applied to a class of cases, such judgment shall not affect, impair, or invalidate the remainder thereof and of this part, but shall be confined in its operation to the clause, sentence, paragraph, or part thereof directly involved in the controversy in which such judgment shall have been rendered. REGULATIONS

SEC. 3691. The Secretary is authorized to issue such regulations as 12 USC 3717. may be necessary to carry out the provisions of this part. PART 7—EFFECTIVE DATE EFFECTIVE DATE

SEC. 371. (a) Except as otherwise provided in this subtitle, the provisions of this subtitle shall take effect on October 1, 1981. (b) The amendments made by sections 324, 325, and 326(a) shall apply only with respect to contracts entered into on and after October 1, 1981.

Subtitle B—Banking and Related Programs SHORT TITLE

SEC. 380. This subtitle may be cited as the "Banking and Related Programs Authorization Adjustment Act". EXPORT-IMPORT BANK OF THE UNITED STATES

SEC. 381. (a) Section 7(a) of the Export-Import Bank Act of 1945 (12 U.S.C. 635e(a)) is amended— (1) by inserting "(1)" after "Sec. 7. (a)"; and (2) by adding at the end thereof the following:

12 USC 3701 note. Ante, pp. 405, 406.

Banking and Related Programs Authorization Adjustment Act. 12 USC 635 note.

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Report to Congress.

PUBLIC LAW 97-35—AUG. 13, 1981 "(2) Within the limits of funds and borrowing authority available to the Bank pursuant to this Act, gross obligations for the principal amount of direct loans authorized by the Bank during fiscal years 1982 and 1983 shall not exceed $10,478,000,000, of which amount $5,065,000,000 is designated for fiscal year 1982 and $5,413,000,000 is designated for fiscal year 1983.". (b) On or before December 15, 1981, the Secretary of the Treasury shall transmit a report to both Houses of the Congress regarding the status of negotiations within the Organization for Economic Cooperation and Development on improving the International Arrangement on Guidelines for Officially Supported Export Credits and on the status of any other multilateral or bilateral negotiations or discussions for the purpose of improving any other arrangements, standstills, minutes, and practices involving official export financing in which the United States participates. Such report shall include— (1) an assessment of the progress, if any, that has been made in these negotiations, and of the prospects for a successful conclusion to these negotiations within a reasonable time; and (2) a recommendation by the Secretary of the Treasury as to whether the Congress, in order to improve the prospects for a successful conclusion to these negotiations, should enact legislation for the purpose of enhancing the ability of the Export-Import Bank of the United States to offer or support export credit fully competitive with the subsidized official export credit offered or supported by other governments. DEPARTMENT OF THE TREASURY

Appropriation authorization.

Effective date. 31 USC 369 note.

SEC. 382. (a) Section 5 of the Act of November 8, 1978 (92 Stat. 3092; Public Law 95-612), is amended— (1) in subsection (a), by striking out "$24,000,000 for fiscal year 1979 and $22,375,000 for fiscal year 1980," and inserting in lieu thereof "$22,896,000 for fiscal year 1982, and such sums as may be necessary for each fiscal year thereafter"; and (2) in subsection (b), by striking out "for fiscal year 1980 not to exceed $800,000" and inserting in lieu thereof "not to exceed $1,000,000 for fiscal year 1982, and such sums as may be necessary for each fiscal year thereafter,". (b) The last sentence of section 3552 of the Revised Statutes (31 U.S.C. 369) is amended to read as follows: "There are authorized to be appropriated for fiscal year 1982 not to exceed $54,706,000 for all expenditures (salaries and expenses) of the mints and assay offices not herein otherwise provided for.". (2) The amendment made by paragraph (1) shall take effect on October 1, 1981. COUNCIL ON WAGE AND PRICE STABILITY

Repeal.

SEC. 383. Section 6 of the Council on Wage and Price Stability Act (12 U.S.C. 1904 note) is hereby repealed. USURY PROVISION

SEC. 384. Section 501(a)(l)(C)(vi) of the Depository Institutions Deregulation and Monetary Control Act of 1980 (12 U.S.C. 1735f-7 note) is amended by inserting "or a residential manufactured home" after "residential real property".

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RESERVE REQUIREMENTS

SEC. 385. (a) Section 19(b)(8)(E) of the Federal Reserve Act (12 U.S.C. 461(b)(8)(E)) is amended by striking out the first two sentences thereof and inserting in lieu thereof the following: "This subparagraph applies to any depository institution that, on August 1, 1978, (i) was engaged in business as a depository institution in a State outside the continental limits of the United States, and (ii) was not a member of the Federal Reserve System at any time on or after such date. Such a depository institution shall not be required to maintain reserves against its deposits held or maintained at its offices located in a State outside the continental limits of the United States until the first day of the sixth calendar year which begins after the effective date of the Monetary Control Act of 1980.". (b) The third sentence of section 19(b)(8)(E) of such Act (12 U.S.C. 461(b)(8)(E)) is amended by striking out "its deposits" and inserting in lieu thereof "such deposits".

Subtitle C—National Consumer Cooperative Bank Act Amendments

94 Stat. 133.

SHORT TITLE

National Consumer Cooperative Bank Act Amendments of 1981.

SEC. 390. This subtitle may be cited as the "National Consumer Cooperative Bank Act Amendments of 1981".

12 USC 3001 note.

ACCELERATION OF FINAL GOVERNMENT EQUITY REDEMPTION DATE

SEC. 391. (a)(1) The National Consumer Cooperative Bank Act (12 U.S.C. 3001 et seq.) is amended by inserting after section 115 the Post, p. 436. following: ACCELERATION OF FINAL GOVERNMENT EQUITY REDEMPTION DATE

"SEC. 116. (a)(1)(A) The Final Government Equity Redemption Date 12 USC 3026 shall occur on December 31, 1981, or not later than 10 days after the date of the enactment of the first Act providing for appropriations for fiscal year 1982 (other than continuing appropriations) for the Department of Housing and Urban Development and Independent Agencies, whichever occurs later. "(B) Not later than 5 days after the Final Government Equity Publication in Redemption Date, the Secretary of the Treasury shall publish a Federal notice in the Federal Register indicating the day on which the Final Register. Government Equity Redemption Date occurred. "(2)(A) Before the Final Government Equity Redemption Date, the Secretary of the Treasury shall purchase all class A stock for which the Congress has appropriated funds. "(B) After the Final Government Equity Redemption Date, the Secretary of the Treasury shall not purchase any class A stock. "(3)(A) On the Final Government Equity Redemption Date, all class A stock held by the Secretary of the Treasury on such date shall be redeemed by the Bank in exchange for class A notes which are issued by the Bank to the Secretary of the Treasury on behalf of the United States and which have a total face value equal to the total par value of the class A stock which is so redeemed, plus any unpaid dividends on such stock. "(B) During the period beginning on the Final Government Equity Redemption Date and ending on December 31, 1990, not less than 30

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12 USC 3014.

Bylaws.

Effective date. 12 USC 3026 note. 12 USC 3017a. Effective date. 12 USC 3017a note.

PUBLIC LAW 97-35—AUG. 13, 1981 percent of the revenue derived from the sale of stock by the Bank, other than the sale of class B stock or class C stock, shall be used, upon receipt, to retire class A notes. "(C) After December 31, 1990, the Bank shall maintain a repayment schedule for class A notes which will assure full repayment of all class A notes not later than December 31, 2020. The requirement specified in the previous sentence is in addition to the requirement regarding the redemption of class A notes which is specified in section 104(c). "(b)(1) The United States shall not be responsible for any obligation of the Bank which is incurred after the Final Government Equity Redemption Date. "(2) As soon as practicable after the date of the enactment of this section, the Board shall adopt bylaws which will assist in expediting and coordinating the activities which will occur with respect to the Final Government Equity Redemption Date.". (2) The amendment made by paragraph (1) shall take effect on the date of the enactment of this Act. (b)(1) Only for purposes of section 107(a) of the National Consumer Cooperative Bank Act (12 U.S.C. 3017(a)), class A notes shall be deemed to be paid-in capital of the Bank. (2) This subsection shall take effect on the day after the Final Government Equity Redemption Date. TAX STATUS OF THE BANK

26 USC 1381.

Definitions. 26 USC 1388.

12 USC 3014.

SEC. 392. (a) Section 109 of the National Consumer Cooperative Bank Act (12 U.S.C. 3019) is amended— (1) by striking out "Until the Final Government Equity Redemption Date, but not thereafter, the Bank" and inserting in lieu thereof "(a) The Bank"; and (2) by adding at the end thereof the following: "(b) Notwithstanding any other provision of law, for purposes of subchapter T of the Internal Revenue Code of 1954— "(1) the Bank shall be treated as a corporation operating on the cooperative basis within the meaning of section 1381(a)(2) of such Code; "(2) the term 'patronage dividend', as defined in section 1388(a) of such Code includes, only as such section applies to the Bank, any patronage refunds in the form of class B or class C stock or allocated surplus that are distributed or set aside by the Bank pursuant to section 104(i) of this Act; "(3) the terms 'written notice of allocation' and 'qualified written notices of allocation', as defined in sections 1388(b) and (c) of such Code, include (to the extent of par value), only as such sections apply to the Bank, any class B or class C stock distributed by the Bank pursuant to section 104(i) of this Act and shall also include any allocated surplus set aside by the Bank pursuant to section 104(i) of this Act; "(4) patrons of the Bank shall be deemed to have consented under section 1388(c)(2) of such Code to the inclusion in their incomes of any qualified written notices of allocation received by such patrons from the Bank; and "(5) any amounts required to be included in the incomes of patrons of the Bank with respect to class B or class C stock or allocated surplus shall be treated as earnings from business done by such patrons of the Bank with or for their own patrons.".

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