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Page:United States Statutes at Large Volume 97.djvu/1228

 97 STAT. 1196 PUBLIC LAW 98-181—NOV. 30, 1983 Rules. "Federally assisted rental housing for the elderly or handicapped." Ante, p. 1190. 42 USC 1437 note. 12 USC 1701. 42 USC 1471. 12 USC 1701q. program of assistance referred to in subsection (d) that is adminis- tered by such Secretary; and (B) attaining the goal of providing decent, safe, and sanitary housing for the elderly or handicapped, (2) Such regulations shall establish guidelines under which the owner or manager of any federally assisted rental housing for the elderly or handicapped (A) may prescribe reasonable rules for the keeping of pets by tenants in such housing; and (B) shall consult with the tenants of such housing in prescribing such rules. Such rules may consider factors such as density of tenants, pet size, types of pets, potential financial obligations of tenants, and standards of pet care. (c) Nothing in this section may be construed to prohibit any owner or manager of federally assisted rental housing for the elderly or handicapped, or any local housing authority or other appropriate authority of the community where such housing is located, from requiring the removal from any such housing of any pet whose conduct or condition is duly determined to constitute a nuisance or a threat to the health or safety of the other occupants of such housing or of other persons in the community where such housing is located. (d) For purposes of this section, the term "federally assisted rental housing for the elderly or handicapped" means any rental housing project that— (1) is assisted under section 202 of the Housing Act of 1959; or (2) is assisted under the United States Housing Act of 1937, the National Housing Act, or title V of the Housing Act of 1949, and is designated for occupancy by elderly or handicapped families, as such term is defined in section 202(d)(4) of the Housing Act of 1959. TITLE III—RENTAL HOUSING REHABILITATION AND DEVELOPMENT PROGRAM RENTAL REHABILITATION AND DEVELOPMENT GRANTS SEC. 301. The United States Housing Act of 1937 is amended by inserting before section 18 the following: RENTAL REHABILITATION AND DEVELOPMENT GRANTS 42 USC i437o. "SEC. 17. (a) PROGRAM AUTHORITY.— (1) REHABILITATION AND DEVELOPMENT GRANTS. —The Secretary is authorized— "(A) to make rental rehabilitation grants to States and units of general local government to help support the rehabilitation of privately owned real property to be used for primarily resi- dential rental purposes in accordance with subsection (c); and "(B) to make development grants for new construction or substantial rehabilitation in accordance with subsection (d). "(2) AUTHORITY TO RESERVE HOUSING ASSISTANCE.— In connection with a grant under this section, the Secretary may reserve authority Ante, p. 1181. to provide housing assistance under section 8(o) to the extent necessary— "(A) to provide housing assistance to persons displaced by activities under this section; or "(B) to support the grantee's program. "(3) AUTHORIZATION. —To carry out the purposes of this section the Secretary may utilize not to exceed $615,000,000, as provided in Ante, p. 1176. Section 5(c) for Hscal years 1984 and 1985, of which amount—

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Page:United States Statutes at Large Volume 97.djvu/1229

 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1197 "(A) not to exceed $150,000,000 shall be available in each such year for rental rehabilitation, of which $1,000,000 shall be available each year for technical assistance; and "(B) not to exceed $200,000,000 for fiscal year 1984, and $115,000,000 for fiscal year 1985, shall be available for develop- ment grants. "(b) DISTRIBUTION OF RENTAL REHABIUTATION GRANT FUNDS. —(1) FORMULA ALLOCATION.—Of the amount available in any fiscal year for rehabilitation grants under this section, the Secretary shall allocate amounts for rehabilitation grants under subsection (c) to cities having populations of fifty thousand or more, urban counties, and States for usc as provided in subsection (e), on the basis of a formula which shall be contained in a regulation proposed by the Secretary not later than sixty days after the effective date of this section. Such regulation shall be accompanied by the specific fund allocation for fiscal year 1984 for individual cities, urban counties, and States which would result from the proposed formula and any adjustments under paragraph (2). The formula contained in the regulation shall take into account objectively measurable condi- tions, including such factors as low income renter population, over- crowding of rental housing, the extent of physically inadequate housing stock, and such other objectively measurable conditions as the Secretary deems appropriate to reflect the need for assistance under this section, but excluding data relating to such factors which pertain to areas eligible for assistance under title V of the Housing Act of 1949. "(2) ADJUSTMENTS.— Before an allocation determined under para- graph (1) for any fiscal year is made available for use, the Secretary may adiust the allocation as follows: ' (A) The Secretary is authorized to establish minimum alloca- tion amounts for cities and urban counties, representing pro- gram levels below which, in the Secretary's determination, conduct of a rental rehabilitation program would not be feas- ible. The amount of any allocation which is below this minimum shall be added to the allocation for the State in which the city or county is located and shall be available in accordance with subsection (e). "(B) Beginning with fiscal years after fiscal year 1984, the Secretary is authorized to adjust the allocation for a city, urban county, or State administering a rental rehabilitation program as provided in subsection (f), by up to 15 per centum above or below the amount of such allocation, based on an annual review of performance in carrying out activities under this section in a timely manner and in achieving the result that at least 80 per centum of the units rehabilitated with assistance under this section in all program years have rents which are and remain at a level which would be affordable by lower income families. The last sentence of subparagraph (A) shall not apply to an alloca- tion which is below the minimum amount described therein by reason of an adjustment under this subparagraph. The Secre- tary shall establish by regulation performance criteria for pur- poses of this subparagraph. "(3) REALLOCATION.— After the allocation of rehabilitation grant amounts, the Secretary is authorized to reallocate such amounts among grantees on the basis of the Secretary's assessment of the progress of grantees in carrying out activities under this section in accordance with their specifled schedules. Reallocations under this Regulation. 42 USC 1471. Rental rehabilitation program administration.

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Page:United States Statutes at Large Volume 97.djvu/1230

 97 STAT. 1198 PUBLIC LAW 98-181—NOV. 30, 1983 paragraph shall be designed to encourage use of these resources expeditiously, consistent with the sound development and adminis- tration of the grantees' rental rehabilitation programs. "(4) RECAPTURE.— Any rental rehabilitation grant amounts which are not obligated at the end of any fiscal year shall be added to the amount available for allocation for such grants for the succeeding fiscal year. "(c) GRANTS FOR MODERATE REHABIUTATION. —(1) PROGRAM DESCRIPTION.—A rehabilitation grant may be made under this sec- tion on the basis of satisfactory information provided in a program description which shall be submitted by the grantee at such time and in such manner as the Secretary may prescribe and which shall contain— "(A) a description of the grantee's proposed rental rehabil- itation program, which shall consist of the activities each grantee proposes to undertake for the fiscal year, including the grantee's anticipated schedule in carrying out those activities, or, in case of a State distributing resources as provided in subsection (e), its proposed method of distributing the resources, which shall have been made available to the public; "(B) a certification that the grantee's program was developed after consultation with the public; "(C) a statement of the procedures and standards which will govern selection of proposals by the grantee, which procedures and standards shall take into account the extent to which the proposal represents the efficient use of Federal resources and the extent to which the housing units involved will be adequately maintained and operated with rents at the levels proposed; "(D) an estimate of the effect of the proposed program on neighborhood preservation; "(E) evidence demonstrating the financial feasibility of the proposed program, including the availability of non-Federal and private resources and including evidence that the projects to be selected for rehabilitation will be located in neighborhoods where rents are generally affordable to lower income families and that the character of the neighborhood indicates that such rents will not materially change over an extended period; and "(F) such other information as the Secretary shall prescribe. Rental " (2) PROGRAM REQUIREMENTS. —A rental rehabilitation program rehabilitation. assisted under this section shall provide that— "(A) grant assistance shall only be used to rehabilitate real property to be used for primarily residential rental purposes; "(B) grants shall only be used to assist the rehabilitation of real property located in neighborhoods where the median income does not exceed 80 per centum of the median income for the area; "(C) grant assistance for any structure shall not exceed 50 pei centum of the total costs associated with the rehabilitation of that structure, as determined by the Secretary, except that where the Secretary determines that refinancing costs and the special nature of the project require a greater amount of assist- ance, the grant amount shall be limited to not to exceed 50 per centum of the development cost including acquisition; "(D) rehabilitation assisted under this section shall only be that which is necessary to correct substandard conditions, to

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Page:United States Statutes at Large Volume 97.djvu/1231

 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1199 make essential improvements, and to repair major systems in danger of failure; "(E) the amount of rental rehabilitation assistance provided under this section for any structure shall not exceed $5,000 per unit except as otherwise determined by the Secretary in areas of high material and labor costs where the grantee demon- strates that every appropriate step has been taken by the grantee to contain the amount of assistance within the limit set by this paragraph and that an exception is necessary to conduct a rehabilitation program while not exceeding the rehabilitation standards of subparagraph (D); "(F) a structure may be assisted under this section only if the rehabilitation of such structure will not cause the involuntary displacement of very low-income families by families who are not very low-income families; "(G) the owner of each assisted structure agrees— "(i) not to discriminate against prospective tenants on the basis of their receipt of or eligibility for housing assistance under any Federal, State, or local housing assistance pro- gram or, except for a structure for housing for the elderly, on the basis that the tenants have a minor child or children who will be residing with them; and "(ii) not to convert the units to condominium ownership (or in the case of a cooperative, to condominium ownership or any form of cooperative ownership not eligible for assist- ance under this section); for at least 10 years beginning on the date on which the units in the project are completed; "(H) the State or unit of general local government that receives the assistance certifies to the satisfaction of the Secre- tary that the assistance will be made available in conformity with Public Law 88-352 and Public Law 90-284; and "(I) 100 per centum of the amount of assistance provided under this section shall be used by the grantee for the benefit of lower income families, except that such requirement shall be reduced to (i) 70 per centum if the grantee certifies in accord- ance with standards prescribed by the Secretary that such reduction is necessary, and that the gremtee cannot develop a proposed program which complies with such requirement, after consultation with the public regarding the inability to develop a program which complies with such requirement, and (ii) to not less than 50 per centum where the Secretary determines that such further reduction is necessary. "(3) SECRETARIAL RESPONSIBILITY. —The Secretary shall assure that— "(A) an equitable share of the rehabilitation grants under this section is used to assist in the provision of housing for families, including large families with children; and "(B) a priority shall be given to projects containing units in substandard condition which are occupied by very low-income families. "(d) GRANTS FOR NEW CONSTRUCTION AND SUBSTANTIAL REHABIU- TATION. — "(1) TYPES OF ASSISTANCE. — Development grant funds may be used by the grantee to make grants or loans, provide interest reduction payments, or furnish other comparable assistance to support the Low-income families, displacement. 42 USC 2000a note; 82 Stat. 73.

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Page:United States Statutes at Large Volume 97.djvu/1232

 97 STAT. 1200 PUBLIC LAW 98-181—NOV. 30, 1983 Regulations. Minimum standards. Regulations, submittal to Congress. new construction or substantial rehabilitation of real property to be used primarily for residential rental purposes. "(2) AREA ELIGIBILITY,—To be eligible for development grants under this subsection, a project must be located in an area that is experiencing a severe shortage of decent rental housing opportuni- ties for families and individuals without other reasonable and affordable housing alternatives in the private market. The Secre- tary shall issue regulations, consistent with the preceding sentence, that set forth minimum standards for determining areas eligible for assistance. Such standards shall be based on objectively measurable conditions, and shall take into account the extent of poverty, the extent of occupancy of physically inadequate housing by lower income families, the extent of housing overcrowding experienced by lower income families, the level and duration of rental housing vacancies, the extent of the lag between the estimated need for and production of rental housing, and other objectively measurable con- ditions specified by the Secretary consistent with the first sentence of this subsection. The Secretary shall propose regulations under this paragraph not later than 60 days after the date of enactment of this section and shall promptly transmit to the Congress such proposed regulations accompanied by a list of those areas which meet the minimum standards contained in such regulations. Any unit of government located in an area which meets such minimum standards is eligible to submit an application for a rental housing development grant under this section. The Secretary may also consider an application for a project to be located in an area which is not eligible under such standards where the Secretary determines that a project involving assistance for other than moderate rehabili- tation is necessary in order to meet special housing needs or to advance a particular neighborhood preservation purpose. "(3) APPLICATION. —A development grant may be made under this section on the basis of information provided in an application which shall be submitted by the grantee at such time and in such manner as the Secretary may prescribe. In addition to information relating to the selection criteria set forth in paragraph (5), the application shall contain— "(A) a description of the grantee's proposed rental develop- ment program, which shall consist of the activities the grantee proposes to undertake for the fiscal year, including a specifica- tion of the grantee's anticipated schedule in carrying out those activities; "(B) a certification that the grantee's program was developed after consultation with the public; "(C) a statement of the procedures and standards which will govern selection of proposals by the grantee, which procedures and standards shall take into account the extent to which the proposal represents the efficient use of Federal resources and the extent to which the housing units involved will be ade- quately maintained and operated with rents maintained at the levels proposed; "(D) an estimate of the effect of the proposed program on neighborhood preservation; and "(E) such other information as the Secretary shall prescribe. "(4) PROGRAM REQUIREMENTS.—A rental development program assisted under this section shall provide that— "(A) grant assistance shall be used to develop real property to be used for residential rental purposes only;

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Page:United States Statutes at Large Volume 97.djvu/1233

 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1201 "(B) grant assistance for any structure shall not exceed 50 per centum of the total costs associated with the rehabilitation or development of that structure, as determined by the Secretary, except that where the Secretary determines that refinancing costs and the special nature of the project require a greater amount of assistance, the grant amount shall be limited to not to exceed 50 per centum of the development cost including acquisition; "(C) a structure may be assisted under this section only if the development of such structure will not cause the involuntary displacement of very low-income families by families who are not very low-income families; "(D) the owner of each assisted structure agrees— "(i) not to discriminate against prospective tenants on the basis of their receipt of or eligibility for housing assistance under any Federal, State, or local housing assistance pro- gram or, except for a structure for housing for the elderly, on the basis that the tenants have a minor child or children who will be residing with them; and "(ii) not to convert the units to condominium ownership (or in the case of a cooperative, to condominium ownership or any form of cooperative ownership not eligible for assist- ance under this section); during the 20-year period beginning on the date on which the units in the project are available for occupancy; "(E) the owner of each assisted structure agrees that, during the 20-year period beginning on the date on which 50 per centum of the units in the structure are occupied or completed, at least 20 per centum of the units the construction or substan- tial rehabilitation of which is provided for under the application shall be occupied, or available for occupancy by, persons and families whose incomes do not exceed 80 per centum of the area median income; "(F) the structure— "(i) will have a value after rehabilitation or construction that is not more than the amount of a mortgage on the structure that could be insured under section 207 of the National Housing Act; and "(ii) is secured by a mortgage which bears a rate of interest and contains such other terms and conditions as the Secretary determines are reasonable; "(G) the grantee must commence construction or substantial rehabilitation activities not later than 24 months after notice of project selection; and "(H) the State or unit of general local government that receives the assistance certifies to the satisfaction of the Secre- tary that the assistance will be made available in conformity with Public Law 88-352 and Public Law 90-284. "(5) PROJECT SELECTION.— In selecting projects to receive develop- ment grants, the Secretary shall make such selection on the basis of the extent— "(A) of the severity of the shortage of decent rental housing opportunities in the area in which the project or projects are to be located for families and individuals without other reasonable and affordable housing alternatives in the private market; Low-i ncome families, displacement. 12 USC 1713. 42 USC 2000a note; 82 Stat. 73.

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 97 STAT. 1202 PUBLIC LAW 98-181—NOV. 30, 1983 42 USC 1437f. Violation, payment. "(B) of non-Federal public and private financial or other contributions that reduce the amount of assistance necessary under this section; "(C) to which the project or projects contribute to neighbor- hood development and mitigate displacement; "(D) to which the applicant has established a satisfactory record of performance in meeting assisted housing needs and has the capacity to undertake the program in a timely manner; "(E) to which the assistance requested will provide the maxi- mum number of units for the least cost to the Federal Govern- ment, taking into consideration the extent to which assistance provided will be recaptured and cost differences among differ- ent areas, among financing alternatives, and among the types of projects and tenants being served; "(F) to which the grantee will establish a mechanism to assure the maintenance of affordable rentals for lower income families; "(G) to which the applicant has demonstrated the financial feasibility of the proposed program, including the availability of non-Federal and private resources; and "(H) to which an equitable share of the development grant funds under this section will be used to assist in the provision of housing for families, including large families with children. "(6) PRIORITIES.— In selecting projects for grants under this subsec- tion, the Secretary shall give a priority to proposals involving projects— "(A) which exceed the minimum requirements of paragraph (4)(E); and "(B) in areas where the waiting lists for housing assistance are relatively long and where families holding certificates under section 8 require an excessive length of time to find housing. "(7) ENFORCEMENT OF PROGRAM REQUIREMENTS.— (A) The grantee shall take appropriate legal action to enforce compliance with the requirements of this subsection by the owner of any assisted prop- erty or his or her successors in interest during the 20-year period beginning on the date on which 50 per centum of the units are occupied or are completed. For any violation of such agreements, the owner or his or her successors in interest shall make a payment to the grantee of an amount that equals the total amount of assistance provided under this title with respect to such project, plus interest thereon (without compounding), for each year and any fraction thereof that the assistance was outstanding, at a rate determined by the Secretary taking into account the average yield on outstanding marketable long-term obligations of the United States during the month preceding the date on which the assistance was made avail- able. The amount of such assistance (and accrued interest) which is required to be repaid shall be reduced by 10 per centum for each full year in excess of 10 years which intervened between the commence- ment of the period and the violation. Any amounts recovered by the grantee shall be used to furnish assistance under this section. "(B) Notwithstanding any other provision of law, any assistance provided under this subsection shall constitute a debt, which is payable in the case of any failure to carry out the agreements, and shall be secured by the security instruments provided by the owner to the grantee.

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Page:United States Statutes at Large Volume 97.djvu/1235

 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1203 " (8)(A) RENT PROVISIONS.—Rents charged for units available for occupancy by lower income families in any project assisted under this subsection shall be approved by the grantee. In approving such rents, the grantee shall provide that the rents of such units are not more than 30 per centum of the adjusted income of a family whose income equals 50 per centum of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families. Not less than 30 days prior written notice of any increase in rents shall be provided to such tenants. "(B) Any schedule of rents submitted by an owner to the grantee for approval shall be deemed to be approved unless the grantee informs the owner, within 60 days after receiving such schedule, that such schedule is disapproved. "(9) GRANT AMOUNT. —The amount of a development grant pro- vided under this subsection shall not be more than that amount which will provide decent rental or cooperative housing of modest design which is affordable for families and individuals without other reasonable and affordable housing alternatives in the private market, including an amount necessary to achieve compliance with paragraph (8)(A). "(e) STATE PROGRAM.— (1) Except as provided in paragraph (2), the State shall administer resources made available under subsection (b)(2) for any fiscal year. These resources shall only be used to carry out activities under this section in cities with populations of less than fifty thousand and in urban counties and cities whose alloca- tions are less than the minimum allocation amount established under subsection (b)(2), but may not be used in areas which are eligible for assistance under title V of the Housing Act of 1949. The State may usc all or part of these resources (A) to carry out its own rental rehabilitation program, or (B) to distribute them to units of general local government. A city with a population over fifty thou- sand may, with the agreement of the State government, elect to contract with the State to administer the grant program under this section in any fiscal year. "(2) States may elect not to administer resources made available under subsection (b)(2) of this section. This election shall be made in such manner and before such time as the Secretary may prescribe. The Secretary shall administer the resources available to any State exercising such an election in accordance with regulations and procedures prescribed by the Secretary, including the administra- tion of grant programs of cities with populations over fifty thousand which elect not to administer their own program. Such regulations shall, to the maximum extent practicable, be comparable to those for cities and urban counties receiving resources under subsection (b). "(3) A State may apply for and receive, on behalf of a unit of local government located in that State and with the concurrence of that unit of general local government, a rental development grant to be used in accordance with the provisions of subsection (d). "(4) In any case in which the State is a grantee under any provision of this section, the Secretary shall require that the State take such actions as may be appropriate to assure compliance with the program requirements, owner agreements, and other provisions of this section. "(f) APPLICABILITY OF REQUIREMENTS OR AGREEMENTS. —Require- ments imposed by or agreements made with States and units of general local government regarding rents in structures assisted Increase notification. 42 USC 1471.

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Page:United States Statutes at Large Volume 97.djvu/1236

 97 STAT. 1204 PUBLIC LAW 98-181—NOV. 30, 1983 under this section (including requirements relating to the rents which may be charged after rehabilitation) shall not apply to a structure assisted under this section unless (1) such requirements are imposed or agreements are entered into pursuant to a State law or local ordinance of general applicability which was enacted and in effect in that jurisdiction prior to the date of enactment of this section, and (2) such requirements or agreements would apply gener- ally to structures not assisted under this section. Regulations. "(g) RELOCATION. —The Secretary shall by regulation establish such standards governing reasonable relocation payments and other related assistance as the Secretary determines to be appropriate, "(h) ADMINISTRATIVE EXPENSES.— Grantees receiving assistance under this section shall not deduct therefrom any amounts to cover administrative expenses incurred by them in carrying out their responsibilities under this section. "(i) PRESERVATION, ENVIRONMENTAL POLICY, AND LABOR STAND- ARDS. — (1) The Secretary shall establish procedures which support national historic preservation objectives and which assure that, if any rehabilitation or development proposed to be assisted under this section would affect property which is included on the National Register of Historic Places or which is eligible for inclusion on the National Register of Historic Places, such activity shall not be undertaken unless (A) it will reasonably meet the standards issued by the Secretary of the Interior and the appropriate State historic preservation officer is afforded the opportunity to comment on the specific rehabilitation or development program, or (B) the Advisory Council on Historic Preservation is afforded an opportunity to com- ment on cases for which the grantee of assistance, in consultation with the State historic preservation officer, determines that the proposed activity cannot reasonably meet such standards or would adversely affect historic property as defined therein. "(2) The Secretary's award and grantee's use of resources made available under this section shall be subject to section 104(f) of the Housing and Community Development Act of 1974. "(3) A structure assisted under this section shall be treated as a project subject to a mortgage insured under section 220 of the National Housing Act for the purpose of section 212 of such Act. "(j) FINANCING.— Subject to terms and conditions that are pre- scribed by the Secretary and are consistent with the purpose and other provisions of this section, any obligation issued by a State or local housing agency for the purpose of financing the development of a project or projects assisted under this section is hereby deemed an obligation that meets the requirements of, and has the benefits (including the benefit of interest earned with respect to the obliga- tion being exempt from Federal taxation) associated with, an obliga- 42 USC 14371. tion described in section 11(b). "(k) DEFINITIONS.— For the purpose of this section— "(1) the term 'rehabilitation grant' means a grant to finance moderate rehabilitation; "(2) the term 'development grant' means a grant to finance new construction or substantial rehabilitation; "(3) the Secretary shall usc the same population data and rules for designating cities and urban counties as apply under 42 USC 5301. title I of the Housing and Community Development Act of 1974; "(4) the term 'real property to be used primarily for residen- tial rental purposes' includes cooperative or mutual housing 42 USC 5304. 12 USC 1715k, 1715c.

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Page:United States Statutes at Large Volume 97.djvu/1237

 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1205 which has a resale structure which enables the cooperative to maintain affordability for lower income families; and "(5) the term 'grantee' means— "(A) any city or urban county receiving resources under this section; "(B) any State administering a rental rehabilitation or development program as provided in subsection (f); and "(C) any unit of general local government which receives assistance from the Secretary as provided in subsection (f)(2). The Secretary shall encourage cooperation by units of general local government in the administration of grants under this section by permitting consortia of geographically proximate units of general local government to apply for assistance on behalf of their members, including establishment of eligibility under subsection (b) for consor- tia whose combined populations exceed fifty thousand and which can otherwise meet the requirements of such subsection. Any amounts made available to such a consortium shall be deducted from the allocation to the State in which the units of general local government are located. "(1) REVIEW AND AUDIT.— The Secretary shall, at least on an annual basis, make such reviews and audits as may be necessary or appropriate to determine— "(1) where the grantee is a unit of general local government or a State carrying out its own program as provided in subsec- tion (fKD, whether the grantee has carried out its activities in a timely manner and in accordance with the requirements of this section, and has a continuing capacity to carry out those activi- ties in a timely manner; and "(2) where the grantee is a State distributing resources made available under this section to units of general local government as provided in subsection (e)(2), whether the State (A) has distributed such resources in a timely manner and in accord- ance with the requirements of this section, and (B) has made such reviews and audits of the units of general local govern- ment as may be necessary or appropriate to determine whether they have satisfied the performance criteria described in para- graph (1). In addition to the adjustments based on performance authorized by subsection (b)(2), the Secretary may adjust, reduce, or withdraw resources made available to States and units of general local govern- ment receiving assistance under this section, or take other action as appropriate in accordance with the findings of these reviews and audits, except that resources already expended on eligible activities shall not be recaptured or deducted from future resources made available to the grantee. Any amounts which become available as a result of actions under this paragraph shall be reallocated in the year in which they become available to such grantee or grantees as the Secretary may determine. "(m) PERFORMANCE REPORT. —Prior to the beginning of fiscal year 1985 and each fiscal year thereafter, each grantee shall submit to the Secretary a performance report concerning the activities carried out pursuant to this section, together with an assessment by the grantee of the relationship of these activities to the objectives of this section. Such report shall contain an analysis of the program's cost effectiveness, the type and income levels of tenants who benefit from the rehabilitation program, any tenant displacement resulting from C!onsortium. Submittal to Secretary.

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Page:United States Statutes at Large Volume 97.djvu/1238

 97 STAT. 1206 PUBLIC LAW 98-181—NOV. 30, 1983 the program, and any other information the Secretary may require. To facilitate this reporting requirement, each grantee shall require owners of property rehabilitated under this section to provide veri- fied income data and other pertinent tenant demographic informa- tion as prescribed by the Secretary (to include household size and race) or to otherwise arrange for the collection of such information on an annual basis. The Secretary shall stipulate the format for such data collection to assure that such information can be aggre- gated at the national level to allow congressional oversight. "(n) REPORT TO CONGRESS. —Prior to the beginning of fiscal year 1985 and each fiscal year thereafter, the Secretary shall provide a report to the Congress ais to the overall progress of grantees in meeting the objectives of this section. Such report shall include an analysis of program costs, services delivered, beneficiaries, and the extent to which lower income tenants have been displaced as a result of rehabilitation assisted under this section.". 42 USC 5305. Ante, p. 1196. 42 USC 5307. 42 USC 5301 note. CONFORMING AMENDMENTS TO THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974 SEC. 302. (a) Section 105(a) of the Housing and Community Devel- opment Act of 1974 is amended— (1) by striking out "and" at the end of clause (16); (2) by striking out the period at the end of clause (17) and inserting in lieu thereof "; and"; and (3) by adding at the end thereof the following: "(18) the rehabilitation or development of housing assisted under section 17 of the United States Housing Act of 1937.", (b) Section 107(d) of such Act is amended— (1) by striking out "unless the applicant" in paragraph (1) and inserting in lieu thereof the following: "and no assistance may be made available under section 17 of the United States Hous- ing Act of 1937 unless the grantee"; and (2) by inserting "grantee or" before "applicant" in paragraph (3). (c) Section 817 of such Act is amended— (1) by striking out "and" after "1966,"; and (2) by inserting after "and 1970" the following: ", and section 17 of the United States Housing Act of 1937". Insurance. 12 USC 1715Z-9. Post, p. 1207. Ante, p. 1196. CONFORMING AMENDMENTS TO THE NATIONAL HOUSING ACT SEC. 303. (a) Section 244 of the National Housing Act is amended oy adding at the end thereof the following: "(h) Notwithstanding any other provision of this section, in the case of a mortgage insured under section 223(f) secured by property which is to be rehabilitated or developed under section 17 of the United States Housing Act of 1937, such coinsurance may include provisions that— "(1) insurance benefits shall equal the sum of (A) 90 per centum of the mortgage on the date of institution of foreclosure proceedings (or on the date of acquisition of the property other- wise after default), and (B) 90 per centum of interest arrears on the date benefits are paid; "(2) the mortgagee shall remit to the Secretary, for credit tu the General Insurance Fund, 90 per centum of any proceeds of the property, including sale proceeds, net of the mortgagee's

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 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1207 actual and reasonable costs related to the property and the enforcement of security; "(3) payment of such benefits shall be made in cash unless the mortgagee submits a written request for debenture payment; and "(4) the underwriter of coinsurance may reinsure 10 per centum of the mortgage amount with a private mortgage insur- ance company or with a State iportgage insurance agency. No commitment for insurance pursuant to this subsection may be issued on or after October 1, 1985.". (b) Section 223(f) of such Act is amended by adding at the end thereof the following:, "(5) In the case of any purchase or refinancing under this subsec- tion involving property to be rehabilitated or developed under sec- tion 17 of the United States Housing Act of 1937, th6 Secretary may— "(A) include rehabilitation or development costs of not to exceed $20,000 per unit, except that the Secretary may increase such amount by not to exceed 25 per centum for specific proper- ties where cost levels so require; "(B) permit subordinated liens securing up to the full amount of mortgage financing provided by State or local governments or agencies thereof; and "(C) pay such benefits in cash unless the mortgagee submits a written r^uest for debenture payment.". TITLE IV—PROGRAM AMENDMENTS AND EXTENSIONS PART A—FEDERAL HOUSING ADMINISTRATION MORTGAGE INSURANCE PROGRAMS Subpart 1—General Authorities and Requirements Insurance commitment issuance. 12 USC 1715n. Ante, p. 1196. EXTENSION OF MORTGAGE INSURANCE PROGRAMS SEC. 401. (a) Section 2(a) df the National Housing Act is amended Ante, p. 745. by striking out "December 1, 1983" in the first sentence and insert- ing in lieu thereof "October 1, 1985". (b) Section 217 of such Act is amended by striking out "November Ante, p. 745. 30, 1983" and inserting in lieu thereof "September 30, 1985". (c) Section 221(f) of such Act is amended by striking out "Novem- Ante, p. 745. ber 30, 1983" in the fifth sentence and inserting in lieu thereof "September 30, 1985". (d)(1) Section 235(m) of such Act is amended by striking out Ante, p. 745. "November 30, 1983" and inserting in lieu thereof "September 30, 12 USC 17l5z. 1985". (2) Section 235(q)(l) of such Act is amended by striking out "No- vember 30, 1983" in the last sentence and inserting in lieu thereof "September 30, 1985". (e) Section 244(d) of such Act is amended— Ante, p. 745. (1) by striking out "November 30, 1983" in the first sentence and inserting in lieu thereof "September 30, 1985"; (2) by striking out "December 1, 1983" in the second sentence and inserting in lieu thereof "October 1, 1985"; and (3) by striking out the last two sentences.

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 97 STAT. 1208 PUBLIC LAW 98-181—NOV. 30, 1983 Ante, p. 745. (f) Section 245(a) of such Act is amended by striking out "Novem- ber 30, 1983" in the last sentence and inserting in lieu thereof "September 30, 1985". Ante, p. 745. (g) Section 809(0 of such Act is amended by striking out "Novem- ber 30, 1983" in the last sentence and inserting in lieu thereof "September 30, 1985". Ante, p. 745. (h) Section 81(Xk) of such Act is amended by striking out "Novem- ber 30, 1983" in the last sentence and inserting in lieu thereof "September 30, 1985". Ante, p. 745. (i) Section 1002(a) of such Act is amended by striking out "Novem- ber 30, 1983" in the last sentence and inserting in lieu thereof "September 30, 1985". Ante, p. 745. (j) Section 1101(a) of such Act is amended by striking out "Novem- ber 30, 1983" in the last sentence and inserting in. lieu thereof "September 30, 1985". AMOUNT TO BE INSURED UNDER THE NATIONAL HOUSING ACT 12 USC l735f-9. SEC. 402. Section 531 of the National Housing Act is amended to read as follows: "AMOUNT OF INSURED MORTGAGES "SEC. 531. Notwithstanding any other provision of law and subject only to the absence of qualified requests for insurance, to the 12 USC 1707. authority provided in title II, and to any funding limitation approved in appropriation Acts, the Secretary shall enter into com- mitments during each of the fiscal years 1984 and 1985 to insure mortgages under title II with an aggregate principal amount of $50,900,000,000.". AUTHORIZATION OF APPROPRIATIONS TO COVER LOSSES TO THE GENERAL INSURANCE FUND 12 USC 1735c. SEC. 403. Section 519(0 of the National Housing Act is amended— (1) by inserting "such sums as may be necessary" after "appropriated"; and (2) by striking out "not" and all that follows through "1981". 12 USC 1709-1 and note. 12 USC 1703. EUMINATION OF REQUIREMENT THAT FEDERAL HOUSING ADMINISTRATION INTEREST RATES BE SET BY LAW SEC. 404. (a) The Act entitled "An Act to amend chapter 37 of title 38 of the United States Code with respect to the veterans' home loan program, to amend the National Housing Act with respect to inter- est rates on insured mortgages, and for other purposes", approved May 7, 1968 (Pub. L. 90-301) is amended by striking out sections 3 and 4. (b)(1) Section 2(b)(5) of the National Housing Act is amended to read as follows: "(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 has such maturity, bears such insurance premium charges, and contains such other terms, conditions, and restrictions as the Secre- tary 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 at such

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 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1209 12 USC 1713. 12 USC 1715e. rate as may be agreed upon by the borrower and the financial institution.'. (2) Section 203(b)(5) of such Act is amended to read as follows: 12 USC 1709. "(5) Bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee.". (3) Section 203(k)(3)(B) of such Act is amended to read as follows: "(B) bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee;". (4) The first sentence of the first undesignated paragraph of section 207(c)(3) of such Act is amended to read as follows: "The mortgage shall provide for complete amortization by periodic pay- ments within such term as the Secretary shall prescribe, and shall bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee.". (5) The first sentence of section 213(d) of such Act is amended to read as follows: "Any mortgage insured under this section shall provide for complete amortization by periodic payments within such term as the Secretary may prescribe but not to exceed 40 years from the beginning of amortization of the mortgage, and shall bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee.". (6) The second sentence of section 220(d)(4) of such Act is amended 12 USC 1715k. to read as follows: "The mortgage shall bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee and contain such terms and provisions with respect to the application of the mortgagor's periodic payment to amortization of the principal of the mortgage, insurance, repairs, alterations, payment of taxes, default reserves, delinquency charges, foreclosure proceedings, anticipation of maturity, additional and secondary liens, and other matters as the Secretary may in the Secretary's discretion prescribe. ". (7) Section 220(h)(2)(iii) of such Act is amended to read as follows: "(iii) bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee;". (8) Section 221(d)(5) of such Act is amended by striking out "(exclu- 12 USC 1715Z. sive" and all that follows through "mortgage market" and inserting in lieu thereof the following: "at such rate as may be agreed upon by the mortgagor and the mortgagee". (9) Section 231(c)(6) of such Act is amended to read as follows: 12 USC 17l5v. "(6) bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee; and". (10) Section 232(d)(3)(B) of such Act is amended to read as follows: 12 USC 17l5w. "(B) bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee.". (11) The first sentence of section 234(f) of such Act is amended to 12 USC 17l5y. read as follows: "Any blanket mortgage insured under subsection (d) shall provide for complete amortization by periodic payments within such terms as the Secretary may prescribe but not to exceed 40 years from the beginning of amortization of the mortgage, and shall bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee.". (12) Section 235(i)(3) of such Act is amended— 12 USC I7i5z;. (A) by striking out "and" at the end of subparagraph (D); (B) by striking out the period at the end of subparagraph (E) and inserting in lieu thereof "; and"; and (C) by adding the following new subparagraph at the end thereof:

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 97 STAT. 1210 PUBLIC LAW 98-181—NOV. 30, 1983 12 USC 1715Z-5. 12 USC 1715Z-6. 12 USC 1715Z-7. 12 USC 1749bb. "(F) bear interest at a rate not to exceed such percent per annum on the amount of the principal obligation outstanding at any time as the Secretary finds necessary to meet the mortggige market, taking into consideration the yields on mortgages in the primary and secondary markets.". (13) Section 240(c)(4) of such Act is amended to read as follows: "(4) bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee;". (14) Section 241(b)(3) of such Act is amended to read as follows: "(3) bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee;". (15) Section 242(d)(3)(B) of such Act is amended to read as follows: "(B) bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee.". (16) Section 1002(d)(2) of such Act is amended to read as follows: "(2) bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee, except that the Secretary may agree to a reasonable extension of the term of a mortgage, the maturity of which is limited by this paragraph to not more than 10 years, if the Secretary determines that unusual or unfore- seen circumstances make such extension necessary to avoid undue hardship to the mortgagor;". MINIMUM PROPERTY STANDARDS 12 USC 1735f-4. SEC. 405. (a) Section 526 of the National Housing Act is amended— (1) in the first sentence, by inserting ", other than manufac- tured homes," after "housing"; (2) by adding the following new sentence at the eifd thereof: "Following the effective date of this sentence, the energy per- formance requirements developed and established by the Secre- tary under this subsection for newly constructed residential housing, other than manufactured homes, shall be at least as effective in performance as the energy performance require- ments incorporated in the minimum property standards that were in effect under this subsection on September 30, 1982."; and (3) by inserting "(a)" after the section designation and adding at the end thereof the following new subsection: "(b) The Secretary may require that each property, other than a manufactured home, subject to a mortgage insured under this Act shall, with respect to health and safety, comply with one of the nationally recognized model building codes, or with a State or local building code based on one of the nationally recognized model building codes or their equivalent. The Secretary shall be responsi- ble for determining the comparability of the State and local codes to such model codes and for selecting for compliance purposes an appropriate nationally recognized model building code where no such model code has been duly adopted or where the Secretary determines the adopted code is not comparable.". (b) The section heading of section 526 of such Act is amended to read as follows: "MINIMUM PROPERTY STANDARDS". 12 USC 1735f-8. TIME OF PAYMENT OF MORTGAGE INSURANCE PREMIUMS SEC. 406. Section 530 of the National Housing Act is amended-

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 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1211 (1) by striking out "promptly upon their receipt from the borrower" and inserting in lieu thereof the following: (1) in the case of loans or mortgages respecting one- to four-family resi- dences, promptly upon their receipt from the borrower, and (2) in any other case, promptly when due to the Secretary"; (2) by inserting "or due date, as appropriate," after "such receipt"; and (3) by inserting "or after the due date, as appropriate," before "and ending". MORTGAGE INSURANCE FOR AMERICAN SAMOA SEC. 407. (a) Section 9 of the National Housing Act is amended by 12 USC 1706d. inserting "American Samoa," after "the Trust Territory of the Pacific Islands,". (b) Section 201(d) of such Act is amended by inserting "American 12 USC 1707. Samoa," after "the Trust Territory of the Pacific Islands,". (c) Section 207(a)(7) of such Act is amended by inserting "Ameri- 12 USC 1713. can Samoa," after "the Trust Territory of the Pacific Islands,". ASSIGNMENT OF SECTION 221(g)(4) MORTGAGES TO GOVERNMENT NATIONAL MORTGAGE ASSOCIATION SEC. 408. Section 221(g)(4) of the National Housing Act is amended 12 USC 1715Z. by inserting "(A)" after the paragraph designation and by adding the following new subparagraph at the end thereof: "(B) In processing a claim for insurance benefits under this para- graph, the Secretary may direct the mortgagee to assign, transfer, and deliver the original credit instrument and the mortgage secur- ing it directly to the Government National Mortgage Association in lieu of assigning, transferring, and delivering the credit instrument and the mortgage to the Secretary. Upon the assignment, transfer, and delivery of the credit instrument and the mortgage to the Association, the mortgage insurance contract shall terminate and the mortgagee shall receive insurance benefits as provided in sub- paragraph (A). The Association is authorized to accept such loan documents in its own name and to hold, service, and sell such loans as agent for the Secretary. The mortgagor's obligation to pay a service charge in lieu of a mortgage insurance premium shall continue as long as the mortgage is held by the Association or by the Secretary. The Secretary shall have the same authority with respect to mortgages assigned to the Secretary or the Association under this subparagraph as provided by section 223(c).". 12 USC 1715n. Contract termination. TERMINATION OF SECTTION 221 BUY-BACK PROVISION SEC. 409. The first sentence of section 221(g)(4)(A) of the National Housing Act, as redesignated by section 408 of this Act, is amended by inserting after "this section" the following: "pursuant to a commitment to insure entered into before the effective date of this clause". 12 USC 1715/.

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 97 STAT. 1212 PUBLIC LAW 98-181—NOV. 30, 1983 Subpart 2—Single-Family Mortgage Insurance Programs 12 USC 1703. 42 USC 5401 note. 12 USC 1707. 12 USC 1703. Post, pp. 1216, 1217. 12 USC 1703. 42 USC 5403. TITLE I INSURANCE FOR EXISTING MANUFACTURED HOMES SEC. 415. Section 2(a) of the National Housing Act is amended by inserting the following before the last undesignated paragraph thereof: "The insurance authority provided under this section may be made available with respect to any existing manufactured home that has not been insured under this section if such home was constructed in accordance with the standards issued under the National Manufactured Housing Construction and Safety Standards Act of 1974 and it meets standards similar to the minimum property standards applicable to existing homes insured under title II.'. INCREASED TITLE I LOAN LIMITS FOR MANUFACTURED HOMES AND LOTS SEC. 416. (a) Section 2(b)(l) of the National Housing Act is amended— (1) in subparagraph (C), by striking out "$22,500" and all that follows through "modules)" and inserting in lieu thereof "$40,500"; (2) in subparagraph (D), by striking out "$35,000" and all that follows through "modules)" and inserting in lieu thereof "$54,000"; and (3) in subparagraph (E), by striking out "such an amount as may be necessary, but not exceeding $12,500," and inserting in lieu thereof "$13,500". (b) Section 2(b)(2) of such Act is amended by striking out the last sentence and inserting in lieu thereof the following: "In other areas, the maximum dollar amounts specified in subsections (b)(l)(D) and (b)(l)(E) may be increased on an area-by-area basis to the extent the Secretary deems necessary, but not to exceed the percentage by which the maximum mortgage amount of a one-family residence in the area is increased by the Secretary under section 203(b)(2).". REFINANCING MANUFACTURED HOMES UNDER TITLE I SEC. 417. Section 2(b)(6) of the National Housing Act is amended by adding at the end thereof the following new subparagraph: "(C) The owner-occupant of a manufactured home or a home and lot which was purchased without assistance under this section but which otherwise meets the requirements of this section may refi- nance such home or home and lot under this section if the home was constructed in accordance with standards established under section 604 of the National Manufactured Housing Construction and Safety Standards Act of 1974.". COUNSEUNG FOR PERSONS ASSISTED UNDER TEMPORARY MORTGAGE ASSISTANCE PAYMENTS PROGRAM 12 USC 1715u. SEC. 418. Section 230(d) of the National Housing Act is amended by striking out ", to the extent practicable,". COOPERATIVE HOUSING 12 USC 1709. SEC. 419. Section 203(n) of the National Housing Act is amended—

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 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1213 (1) in paragraph (1), by inserting the following before the period at the end of the second sentence: "or the construction of which was completed more than a year prior to the application for the mortgage insurance"; and (2) by striking out "nonprofit" in paragraph (2)(A). MORTGAGE INSURANCE FOR CONDOMINIUM UNITS SEC. 420. (a) The first sentence of section 234(c) of the National Housing Act is amended by striking out "(2)" and all that follows through the period at the end thereof and inserting in lieu thereof the following: "and (2) at least 80 percent of the units in.the project covered by mortgages insured under this title are occupied by the mortgagors or comortgagors.". (b) The third sentence of section 234(c) of such Act is amended by striking out "(A)" and all that follows through "$25,000" the second place it appears and inserting in lieu thereof the following: "(A) involve a principal obligation in an amount not to exceed the maximum principal obligation of a mortgage which may be insured in the area pursuant to section 203(b)(2)". (c) Section 234 of such Act is amended by adding at the end thereof the following: "(k) With respect to a unit in any project which was converted from rental housing, no insurance may be provided under this section unless (1) the conversion occurred more than one year prior to the application for insurance, (2) the mortgagor or comortgagor was a tenant of that rental housing, or (3) the conversion of the property is sponsored by a bona fide tenants organization represent- ing a majority of the households in the project.". 12 USC 1715y. Post, pp. 1216, 1217. SINGLE-FAMILY MORTGAGE INSURANCE ON HAWAIIAN HOME LANDS SEC. 421. Title II of the National Housing Act is amended by adding at the end thereof the following new section: SINGLE-FAMILY MORTGAGE INSURANCE ON HAWAIIAN HOME LANDS "SEC. 247. (a) The Secretary, subject to such conditions as the Secretary may prescribe, may insure under any provision of this title that authorizes such insurance, a mortgage covering a property upon which there is located a one- to four-family residence, without regard to any limitation in this Act relating to marketability of title or any other limitation in this Act that the Secretary determines is contrary to promoting the availability of such insurance on Hawai- ian home lands, if— "(1) the mortgage is executed by a native Hawaiian on prop- erty located within Hawaiian home lands covered under a homestead lease issued under section 207(a) of the Hawaiian Homes Commission Act, 1920, or under the corresponding provi- sion of the Constitution of the State of Hawaii adopted under section 4 of the Act entitled "An Act to provide for the admis- sion of the State of Hawaii into the Union", approved March 18, 1959 (73 Stat. 5); "(2) the property will be used as the principal residence of the Mortgagor; and "(3) the Department of Hawaiian Home Lands of the State of Hawaii (A) is a comortgagor; (B) guarantees to reimburse the 12 USC 1715Z-12. 48 USC 701. 48 USC note prec. 491.

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CH. I.] pains in the head, especially those arising from tooth-ach. In this case it is inserted by a syringe, or more frequently by the mouth of the operator, into the ear opposite to that side of the face where the pain lies, and is suffered to remain in till the pain leaves the patient, which I have always perceive it do, however violent the attack may have been, in the course of three or four minutes: the whole effect is doubtlessly produced by what is called counter-action.

Early in the evening I arrived at a sugar water-mill, one of the largest haciendas in Mexico. It was built about half a century ago, by Don Carlos Cermina. Here they made weekly 2,000 arrobas, of 25 lbs. each, of molasses, selling for fifteen dollars per carga of eighteen arrobas, also 2,000 arrobas of sugar, besides fifty barrels of brandy. There might have been employed about 1,000 hands; but the works were not in full operation. They belonged to the same owners as the sugar estate and mill of


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 97 STAT. 1214 PUBLIC LAW 98-181—NOV. 30, 1983 Definitions. 48 USC 698. 48 USC note prec. 491. Secretary for any mortgage insurance claim paid in connection with a property on Hawaiian home lands; or (C) offers other security acceptable to the Secretary. "(b) Notwithstanding any other provision of this Act, the Secre- tary may, with respect to mortgages eligible for insurance under subsection (a), insure and make commitments to insure advances made during construction if the Secretary determines that the proposed construction is otherwise acceptable and that no feasible financing alternative is available. "(c) For purposes of this section: "(1) The term 'native Hawaiian' means any descendant of not less than one-half part of the blood of the races inhabiting the Hawaiian Islands before January 1, 1778. "(2) The term 'Hawaiian home lands' means all lands given the status of Hawaiian home lands under section 204 of the Hawaiian Homes Commission Act, 1920, or under the corre- sponding provision of the Constitution of the State of Hawaii adopted under section 4 of the Act entitled "An Act to provide for the admission of the State of Hawaii into the Union", approved March 18, 1959 (73 Stat. 5).". SINGLE FAMILY MORTGAGE INSURANCE ON INDIAN RESERVATIONS SEC. 422. Title II of the National Housing Act is amended by adding at the end thereof the following new section: 12 USC 1715Z-13. SINGLE FAMILY MORTGAGE INSURANCE ON INDIAN RESERVATIONS "SEC. 248. (a) The Secretary, subject to such special conditions as the Secretary may prescribe, may insure under any provision of this title that authorizes such insurance, a mortgage covering a property upon which there is located a one- to four-family residence, without regard to any limitation in this Act relating to marketability of title or any other limitation in this Act that the Secretary determines is contrary to promoting the availability of such insurance on Indian reservations if the mortgage (1) is executed by an Indian tribe and the property is located on trust or otherwise restricted lands; or (2) is executed by a member of an Indian tribe who will usc the property as a principal residence and the property is on trust lands or otherwise restricted land. "(b) Notwithstanding any other provision of this Act, with respect to mortgages covering a property upon which there is located a one- to four-family residence— "(1) the Secretary may insure and make commitments to insure under this title pursuant to this section advances made during construction where the Secretary determines that the proposed construction is otherwise acceptable and meets an applicable tribal or national model building code, and that no feasible financing alternative is available; "(2) the applicable percentage limitation on the amount of the principal obligation of a mortgage based on the appraised value or replacement cost, as appropriate, of a one- to four-family owner-occupied residence contained in this title shall apply in the case of all mortgages insured pursuant to this section without regard to whether the residences are owner-occupied where the residences are owned by the tribe; and

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 PUBLIC LAW 98-181—NOV. 30, 1983 "(3)(A) the Secretary may require an Indian tribe, only as a condition of insurance made under this title pursuant to this section, to pledge income from tribal resources or income from tribal assets not subject to a restriction by the Secretary of the Interior or pledge grants under title I of the Housing and Community Development Act of 1974 or any other Federal grant program administered by the Secretary of Housing and Urban Development to be used to reimburse the Secretary for any mortgage insurance claims paid in connection with resi- dences insured pursuant to this section; or "(B) in the case of an individual Indian mortgagor, the Secre- tary may require a pledge of his or her share of distributed income from tribal resources or income from tribal assets, excluding any Federal grants received by the tribe. "(c) The Secretary may not refuse to insure a mortgage under this section to an individual home purchaser because there is no distrib- uted tribal or trust fund income attributable to that purchaser. "(d) Before making any commitment to insure a mortgage under this section with respect to property located on tribal or trust land, the Secretary shall require a showing by the tribe that it has adopted eviction procedures to be used in the event of a default. "(e) A mortgage insured under this section may be assumed, subject to credit approval by the lender and the consent of the tribe to an assumption of the existing lease or the grant of a new lease, without an adjustment of the interest rate. Any other sale of a property subject to a mortgage insured under this section may be made only if a new lease is granted, except that a sale following a foreclosure may be accompanied by an assumption of the lease with the consent of the tribe. "(f)(1) The Secretary shall make information regarding the status and payment history of loans insured under this section available to local credit bureaus and prospective creditors. Prior to accepting assignment of a mortgage, the Secretary shall require mortgagees to submit documentation that mortgagors have been counseled in a face-to-face interview, informed of the provisions of this subsection or other available assistance, and provided with the names and addresses of officials of the Department of Housing and Urban Development to whom further communications shall be addressed. "(2) Notwithstanding the requirement for conveyance of title under section 204, a mortgagee under this section shall be entitled to receive the benefit of insurance under this section in the case of a mortgage which is more than 90 days in default upon conveyance of the lease agreement and the mortgage documents. "(3) In the event that any default is cured, the Secretary shall seek to reinstate the loan with the mortgagee or another mortgagee. For purposes of this paragraph, the Secretary may provide appropri- ate financial incentives to reinstate the loan commensurate with sound management of the insurance fund. "(4) If the Secretary determines that a mortgagor is not making a good-faith effort to cure a default, and that trust fund or tribal income is available under subsection (b)(3)(B), the Secretary shall commence proceedings for the garnishment of the mortgagor's dis- tributed share of tribal or trust fund income in order to collect loan payments that are past due. Proceedings under this paragraph maj be instituted in a tribal court, court of competent jurisdiction desig- nated by the tribe, or Federal district court. 97 STAT. 1215 Grants. 42 USC 5301. Eviction procedures. Loan information, availability. Mortgagee counseling. 12 USC 1710. Garnishment.

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 97 STAT. 1216 PUBLIC LAW 98-181—NOV. 30, 1983 Foreclosure proceedings. Premium charge. Report to Congress. 12 USC 1709. Recommenda- tions to Congress. Definitions. 31 USC 6701 et seq. 43 USC 1601 note. "(b) If the Secretary determines such action is necessary to protect the insurance fund from undue loss, the Secretary may initiate foreclosure proceedings with respect to any mortgage acquired under this subsection. Such proceeding may take place in a tribal court, a court of competent jurisdiction, or Federal district court. Any such court shall have jurisdiction to convey to the Secretary the remaining life of a lease on the real property and to order eviction of the delinquent mortgagor. "(g) In the administration of this section, the Secretary shall establish a premium charge for insurance that will be sufficient to cover the full costs of the mortgage insurance program under this section, except that such charge may not exceed 3 percent per annum of the principal amount of the mortgage outstanding at any time. Not later than September 30, 1984, the Secretary shall deter- mine and report to the Congress on the feasibility of eliminating any excess amount of the premium under this section over the premium under section 203. In the event such premiums are not sufficient to cover the full costs of the mortgage insurance program under this section, the Secretary shall make recommendations to the Congress about changes to the program. "(h) For purposes of this section: "(1) The term 'Indian tribe' means any Indian or Alaska native tribe, band, nation, or other organized group or commu- nity of Indians or Alaska natives recognized as eligible for the services provided to Indians or Alaska natives by the Secretary of the Interior because of its status as such an entity, or that is an eligible recipient under chapter 67 of title 31, United States Code. "(2) The term 'trust or otherwise restricted land' means (A) that area of land, as defined by the Secretary of the Interior, over which an Indian tribe is recognized by the United States as having governmental jurisdiction; (B) land held in trust for the benefit of any Indian tribe or individual or held by any Indian tribe or individual subject to a restriction by the United States against alienation; or (C) land acquired by Alaska natives under the Alaska Native Claims Settlement Act or any other land acquired by Alaska natives pursuant to statute by virtue of their unique status as Alaska natives.". TREATMENT OF FEDERAL HOUSING ADMINISTRATION SINGLE FAMILY PREMIUMS 12 USC 1709. SEC. 423. (a) Section 203 of the National Housing Act is amended by inserting the following new subsection after subsection (c): "(d) Notwithstanding any provision of this title governing maxi- mum mortgage amounts for insuring a mortgage secured by a one- to four-family dwelling, the maximum amount of the mortgage determined under any such provision may be increased by the amount of the mortgage insurance premium paid at the time the mortgage is insured.'. (b)(1) The first sentence of section 203(b)(2) of such Act is amended by striking out the following: ": Provided, That the foregoing maxi- mum mortgage amounts may be increased by the amount of the mortgage insurance premium paid at the time the mortgage is insured. 12 USC 1715e. (2) Section 213(b)(2) of such Act is amended by striking out the following: ": Provided further. That the foregoing maximum mort-

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 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1217 gage amounts may be increased by the amount of the mortgage insurance premium paid at the time the mortgage is insured". (3) Section 221(d)(2)(A) of such Act is amended by striking out the following: ": Provided further, That the foregoing maximum mort- gage amounts may be increased by the amount of the mortgage insurance premium paid at the time the mortgage is insured". (4) Clause (A) of the third sentence of section 234(c) of such Act is amended by striking out the following: ": Provided, That the forego- ing maximum mortgage amounts may be increased by the amount of the mortgage insurance premium paid at the time the mortgage is insured". (5) Section 235(i) of such Act is amended— (A) by striking out in paragraph (3)(B) the following: ": Pro- vided, That the foregoing maximum mortgage amounts may be increased by the amount of the mortgage insurance premium paid at the time the mortgage is insured"; (B) by striking out in paragraph (3)(C) the following: ": Pro- vided, That the foregoing maximum mortgage amounts may be increased by the amount of the mortgage insurance premium paid at the time the mortgage is insured"; and (C) by striking out in paragraph (3)(D) the following: ": Pro- vided, That the foregoing maximum mortgage amounts may be increased by the amount of the mortgage insurance premium paid at the time the mortgage is insured". (c) The amendments made by this section shall take effect only if the Secretary of Housing and Urban Development determines that the program of advance payment of insurance premiums, with specific regard to the effect of the provisions authorized by the amendments made by such sections, is actuarially sound. 12 USC 1715/. 12 USC 1715y. 12 USC 1715z. Effective date. 12 USC 1709 note. CHANGE IN MAXIMUM LOAN-TO-VALUE RATIO FOR MODESTLY PRICED SINGLE FAMILY HOMES SEC. 424. (a) Section 203(b)(2) of the National Housing Act is amended— (1) by striking out "(except as provided in the next to the last sentence of this paragraph)" in the first sentence and inserting in lieu thereof the following: "(except as otherwise provided in this paragraph)"; and (2) by inserting after the first sentence the following new sentence: "If the mortgage to be insured under this section covers property on which there is located a one- to four-family residence to be occupied as the principal residence of the owner, and the appraised value of the property, as of the date the mortgage is accepted for insurance, does not exceed $50,000, the principal obligation may be in an amount not to exceed 97 percent of such appraised value.". (b) The amendment made by subsection (a) shall take effect only if the Secretary finds and reports to the Congress that such amend- ment, taking into account the higher loan-to-value ratio resulting from the advance payment of mortgage insurance premiums, will not adversely affect the actuarial soundness of the Federal Housing Administration mortgage insurance program. 12 USC 1709. Effective date. Report to Congress. 12 USC 1709 note. 11-194 O - 85 — 40 QL3

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Page:United States Statutes at Large Volume 97.djvu/1250

 97 STAT. 1218 PUBLIC LAW 98-181—NOV. 30, 1983 NONOCCUPANT SINGLE FAMILY MORTGAGORS 12 USC 1709. SEC. 425. Section 203(b)(8) of the National Housing Act is amended by striking out all that follows "an amount equal to" through "subsection." and inserting in lieu thereof the following: "the lesser of (A) the otherwise applicable maximum dollar amount prescribed under paragraph (2), or (B) 85 percent of the appraised value of the property as of the date the mortgage is accepted for insurance:". PAYMENT OF CLAIMS WITHOUT ACQUISITION OF TITLE 12 USC 1710. SEC. 426. (a) Section 204(a) of the National Housing Act is amended— (1) by striking out "Upon such conveyance and assignment" in the second sentence and inserting in lieu thereof the follow- ing: "The Secretary is also authorized, in accordance with such regulations as the Secretary may prescribe, to make the benefit of the insurance as hereinafter provided available to the mort- gagee, notwithstanding any provision of this section requiring conveyance of title to the property to the Secretary, (1) upon sale of the insured property at foreclosure, where such sale is for at least the fair market value of the property (with appropri- ate adjustments), as determined by the Secretary, and (2) upon the assignment to the Secretary of all claims referred to in clause (2) of the preceding sentence. The payment of benefits under the preceding sentence may be made for any mortgage insured pursuant to a commitment to insure issued on or after the effective date of this sentence and, with the approval of the mortgagee, for any mortgage insured pursuant to a commit- ment issued before that date. Upon the conveyance and assign- ment referred to in the first sentence of this section or the sale and assignment referred to in the second sentence of this subsection,"; and (2) by striking out "and any amount" and all that follows through the colon preceding the first proviso of the final sen- tence and inserting in lieu thereof the following: "any amount received as rent or other income from the property, less reason- able expenses incurred in handling the property, after either of such dates, and, in the case of insurance benefits paid in accordance with the second sentence of this section, any amount received upon the foreclosure sale of the property:". (b) Section 204(j) of such Act is amended by inserting after "under section 203" the following: "(other than a mortgagee receiving insurance benefits under the second sentence of subsection (a))" 12 USC 1735b. 38 USC 1801 et seq. STRUCTURAL DEFECTS IN VETERANS ADMINISTRATION-APPROVED, FEDERAL HOUSING ADMINISTRATION-INSURED NEW HOMES SEC. 427. Section 518(a) of the National Housing Act is amended by striking out "approved for mortgage insurance prior to the beginning of construction which he finds" and inserting in lieu thereof the following: "that, before the beginning of construction, was approved for mortgage insurance under this Act or for guaranty, insurance, or a direct loan under chapter 37 of title 38, United States Code, and that the Secretary finds".

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Page:United States Statutes at Large Volume 97.djvu/1251

 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1219 REINSURANCE DEMONSTRATION PROGRAM SEC. 428. (a) Title II of the National Housing Act is amended by adding at the end thereof the following: "REINSURANCE CONTRACTS "SEC. 249. (a) The purpose of this section is to authorize a demon- stration mortgage reinsurance program designed to test the feasibil- ity of entering into reinsurance contracts with private mortgage insurers in order to reduce Government risk and administrative costs, and to speed mortgage processing. The Secretary shall limit the demonstration under this section to not more than two adminis- trative regions of the Department of Housing and Urban Develop- ment, and shall assure that the program is in the financial interest of the Government and will not result in loss of employment by any employees of the Department of Housing and Urban Development before September 30, 1985. The aggregate number of mortgages insured under this section in any administrative region of the Department of Housing and Urban Development in any fiscal year may not exceed 10 percent of the aggregate number of mortgages and loans insured by the Secretary under this title in such region during the preceding fiscal year. "(b) Notwithstanding any other provision of this Act inconsistent with this section, the Secretary is authorized to provide mortgsige insurance with respect to one- to four-family dwellings under sec- tions 203(b), 234, and 245 through reinsurance contracts with private mortgage insurance companies which have been determined to be qualified insurers under section 302(b)(2)(C). Such contracts shall require private mortgage insurance companies to— "(1) assume a percentage of loss on any mortgage insured pursuant to section 203(b), 234, or 245 covering a one- to four- family dwelling, which percentage of loss shall be set forth in the reinsurance contract; and "(2) carry out (under appropriate delegation) such credit ap- proval, appraisal, inspection, commitment, claims processing, property disposition, or other function as the Secretary pursu- ant to regulations, shall approve as consistent with the purposes of this section. "(c) Any contract of reinsurance under this section shall contain such provisions relating to the sharing of premiums on a sound actuarial basis, establishment of insurance reserves, manner of calculating claims on such insurance, conditions with respect to foreclosure, handling and disposition of property prior to claim or settlement, right of assignees, and other similar matters as the Secretary may prescribe pursuant to regulations. Pursuant to a contract under this section, a private mortgage insurance company shall endorse loans for insurance and take such other actions on behalf of the Secretary and in the Secretary's name as the Secretary may authorize. "(d) The Secretary shall require any private mortgage insurance company participating in the program under this section to provide reinsurance for those mortgages offered by the Secretary for inclu- sion in the program.". (b) The Secretary of Housing and Urban Development shall evalu- ate the reinsurance program under section 249 of the National Housing Act and, not later than March 1, 1985, submit to the 12 USC 1715Z-14. 12 USC 1709, 1715y, 1715Z-10. 12 USC 1717. Report to Congress. 12 USC 1715Z-14 note. Supra.

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 97 STAT. 1220 PUBLIC LAW 98-181—NOV. 30, 1983 Congress a report setting forth the results of such evaluation. Such report shall include an evaluation of the possible effect of a reinsur- ance program on the characteristics of the pool of mortgages remaining wholly under the applicable insurance funds and the actuarial soundness of such funds under such conditions. Subpart 3—Multifamily and Other Mortgage Insurance Programs DISCRETIONARY AUTHORITY TO REGULATE RENTS OR CHARGES 12 USC 1713. SEC. 431. (a) Section 207(b)(2) of the National Housing Act is amended— (1) by striking out "any other mortgagor approved by the Secretary" and all that follows through "reasonable return on f the investment." and inserting in lieu thereof the following: "any other mortgagor approved by the Secretary. The Secretary may, in the Secretary's discretion, require any such mortgagor to be regulated or restricted as to rents or sales, charges, capital structure, rate of return, and methods of operation so as to provide reasonable rentals to tenants and a reasonable return on the investment. Any such regulations or restrictions shall continue for such period or periods as the Secretary, in the Secretary's discretion, may require, including until the termina- tion of all obligations of the Secretary under the insurance and during such further period of time as the Secretary shall be the owner, holder, or reinsurer of the mortgage."; (2) by striking out "render effective the regulations or restric- tions" and inserting in lieu thereof "render effective any such regulations or restrictions"; and (3) by striking out "and directed" in the second sentence of the first undesignated paragraph. 12 USC I715y. (b) Section 234(d)(2) of such Act is amended— (1) by striking out "shall be regulated or restricted by the Secretary" and inserting in lieu thereof "may, in the Secre- tary's discretion, be regulated or restricted"; and (2) by striking out "the regulation and restriction" and insert- ing in lieu thereof "any such regulation or restriction". 12 USC 1713 (c) The amendments made in this section shall not apply with ^°^- respect to mortgages insured by the Secretary of Housing and Urban Development before the date of the enactment of this Act. REMOVAL OF REFINANCING LIMITATIONS ON CERTAIN MULTIFAMILY PROJECTS 12 USC 1715k. SEC 432. (a) Section 220(d)(3)(B)(ii) of the National Housing Act is amended by striking out "Provided further," the first time it ap- pears and all that follows through "property or project:". 12 USC 1715/. (b) Section 221(d)(3)(iii) of such Act is amended— (1) by striking out "Provided, That" and all that follows through "property or project:"; and (2) by striking out "further" the first time it appears, icj Section 221(d)(4)(iv) of such Act is amended— (1) by striking out "Provided, That" and all that follows through "property or project:"; and (2) by striking out "further" the first time it appears.

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Page:United States Statutes at Large Volume 97.djvu/1253

 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1221 LIMITATION ON PREPAYMENT OF MORTGAGES ON MULTIFAMILY RENTAL HOUSING SEC. 433. Title II of the National Housing Act is amended by adding at the end thereof the following: "LIMITATION ON PREPAYMENT OF MORTGAGES ON MULTIFAMILY RENTAL HOUSING "SEC. 250. (a) During any period in which an owner of a multi- family rental housing project is required to obtain the approval of the Secretary for prepayment of the mortgage, the Secretary shall not accept an offer to prepay the mortgage on such project unless— "(1) the Secretary has determined that such project is no longer meeting a need for rental housing for lower income families in the area or that the needs of lower income families in such project can more efficiently and effectively be met through other Federal housing assistance taking into accotmt the remaining time the project could meet such needs; "(2) the Secretary (A) has determined that the tenants have been notified of the owner's request for approval of a prepay- ment; (B) has provided the tenants with an opportunity to comment on the owner's request; and (C) has taken such com- ments into consideration; and "(3) the Secretary has ensured that there is a plan for provid- ing relocation assistance for adequate, comparable housing for any lower income tenant who will be displaced as a result of the prepayment and withdrawal of the project from the program. "(b) In the case of a project assisted under section 236 or the proviso to section 221(d)(5) of this title, section 101 of the Housing and Urban Development Act of 1965, or section 202 of the Housing Act of 1959 where the owner has the right to prepay the mortgage covering the assisted project without the Secretary's approval, the Secretary shall give a priority for additional assistance under sec- tion 8 of the United States Housing Act of 1937 and section 201 of the Housing and Community Development Amendments of 1978 to tenants and applicants to become tenants of the project, if— "(1) funds to provide such additional assistemce are available; and "(2) the Secretary determines that making such additional assistance available to the project is necessary to prevent the owner from prepaying the mortgage. "(c) Any owner of a multifamily rental housing project referred to in subsection (b) who receives additional assistance under section 8 of the United States Housing Act of 1937 under the priority estab- lished in subsection (b) shall— "(1) fully utilize the assistance which is available; "(2) grant a priority to applicants to become tenants who have the lowest incomes; and "(3) maintain the low-income character of the project for a period at least equal to the remaining term of the project mortgage to the extent that assistance is provided. "(d) For purposes of this section, the term 'lower income families' has the meaning given such term in section 3(b)(2) of the United States Housing Act of 1937.". 12 USC 1715Z-15. 12 USC 1715Z-1. 12 USC 1715/. 12 USC 1701s, 42 usc 1451. 12 USC 1701q. 42 USC 1437f. 12 USC 1715Z-1 and note, 1715z-la. 42 USC 1437f. 42 USC 1437a.

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 97 STAT. 1222 PUBLIC LAW 98-181—NOV. 30, 1983 12 USC 1715Z-9. 42 USC 1437a. ASSUMPTION OF LOSS UNDER MULTIFAMILY CO-INSURANCE SEC. 434. Section 244(g) of the National Housing Act is amended— (1) in paragraph (1), by striking out "the mortgagee is a public housing agency or an insured depository institution and"; and (2) by striking out paragraph (5) and inserting in lieu thereof the following new paragraph: "(5) As used in this subsection, the term 'public housing agency' has the meaning given such term in section 3(b)(6) of the United States Housing Act of 1937.". MORTGAGE INSURANCE FOR MANUFACTURED HOME PARKS FOR THE ELDERLY SEC. 435. The first sentence of the second undesignated paragraph 12 USC 1713. of section 207(b) of the National Housing Act is amended by striking out "no mortgage shall be insured hereunder" and inserting in lieu thereof the following: "the Secretary may not insure any mortgage under this section (except a mortgage with respect to a manufac- tured home park designed exclusively for occupancy by elderly persons)". MORTGAGE INSURANCE FOR PUBLIC HOSPITALS 12 USC 1715Z-7. SEC. 436. Section 242 of the National Housing Act is amended— (1) by inserting "public facility," in subsection (b)(l)(C) after "which is a"; and (2) by inserting the following before the period at the end of subsection (f): ", and, in the case of public hospitals, to encour- age programs that are undertaken to provide essential health care services to all residents of a community regardless of ability to pay". MORTGAGE INSURANCE FOR BOARD AND CARE HOMES 12 USC 1715W. SEC. 437. (a) Section 232(a)(2) of the National Housing Act is amended by inserting "and board and care homes" after "intermedi- ate care facilities", (b) Section 232(b) of such Act is amended— (1) by striking out the period at the end of paragraph (3) and inserting in lieu thereof'; and"; and (2) by adding the following new paragraph at the end thereof: "(4) the term 'board and care home' means any residential facility providing room, board, and continuous protective over- sight that is regulated by a State pursuant to the provisions of 42 USC I382e. section 1616(e) of the Social Security Act, so long as the home is located in a State that, at the time of an application is made for insurance under this section, has demonstrated to the Secretary that it is in compliance with the provisions of such section 1616(e). ". (c)(1) Section 232(d) of such Act is amended by inserting "or a board and care home" after "intermediate care facility" the second place it appears. (2) Section 232(d)(4) of such Act is amended— (A) by striking out "The" in the first sentence and inserting in lieu thereof the following: "(A) With respect to nursing homes and intermediate care facilities and combined nursing home and intermediate care facilities, the";

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 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1223 (B) by striking out "(A)" and "(B)" in the first sentence and inserting in lieu thereof "(i)" and "(ii)", respectively; and (C) by adding the following new subparagraph at the end thereof: "(B) With respect to board and care homes, the Secretary shall not insure any mortgage under this section unless he has received from the appropriate State licensing agency a state- ment verifying that the State in which the home is or is to be located is in compliance with the provisions of section 1616(e) of the Social Security Act.". (d) Section 232(g) of such Act is amended by striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Services". (e) Section 232(h) of such Act is amended by striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Services". (fKD Section 232(i)(l) of such Act is amended— (A) by inserting "or to board and care homes" after "interme- diate care facilities"; (B) by inserting the following after "Association": "(or any subsequent edition specified by the Secretary of Health and Human Services)"; (C) by striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Services"; and (D) by inserting the following before the period at the end thereof: "or as mandated by a State under the provisions of section 1616(e) of such Act". (2) Section 232(i)(2) of such Act is amended— (A) by striking out "and" at the end of subparagraph (D); (B) by striking out the period at the end of subparagraph (E) and inserting in lieu thereof "; and"; and (C) by adding the following new subparagraph at the end thereof: "(F) in the case of board and care homes, be made with respect to such a home located in a State with respect to which the Secretary has received from the appropriate State licensing agency a statement verifying that the State in which the home is or is to be located is in compliance with the provisions of section 1616(e) of the Social Security Act.". (g) The section heading of section 232 of the National Housing Act is amended to read as follows: "Mortgage Insurance for Nursing Homes, Intermediate Care Facilities, and Board and Care Homes'. 42 USC 1382e. 12 USC 1715w. 42 USC 1382e. Subpart 4—Insurance of Alternative Mortgage Instruments INDEXED MORTGAGES SEC. 441. (a) Section 245(a) of the National Housing Act is amended— (1) in the first sentence, by inserting after "income" the following: "or with monthly payments and outstanding balances adjusted by a percentage change in a selected price index"; and (2) in the second sentence, by striking out "subsection (b)" and inserting in lieu thereof "subsections (b) and (c)". (b) Section 245 of such Act is amended by redesignating subsection (c) as subsection (d) and by inserting the following new subsection after subsection (b): 12 USC 1715Z-10.

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 97 STAT. 1224 PUBLIC LAW 98-181—NOV. 30, 1983 12 USC 1709. Regulations. Post, p. 1225. 12 USC 1715Z-10. "(c) Notwithstanding the provisions of subsection (a), the Secre- tary may insure under any provision of this title a mortgage or loan that meets the requirements of the first sentence of subsection (a) and that has provisions permitting adjustment of monthly payments and outstanding principal according to changes or percentages of changes in a selected price index if the Secretary determines— "(1) the principal obligation of the mortgage or loan initially does not exceed the percentage of the initial appraised value of the property specified in section 203(b) as of the date the mortgage or loan is accepted for insurance; and "(2) the monthly pa)Tnents and principal obligation of the mortgage or loan thereafter will not at any time be increased at a rate greater than the percentage change in the price index stipulated in the initial mortgage or loan contract. In carrying out this subsection, the Secretary shall give a priority to mortgages executed by mortgagors who, as determined by the Secre- tary, have not owned dwelling units within the preceding 3 years. The Secretary shall, not later than March 31, 1984, prescribe regula- tions establishing guidelines governing mortgages and loans described in this subsection and shall, to the extent practicable, conduct a demonstration program to insure mortgages and loans in accordance with this subsection during fiscal years 1984 and 1985. The aggregate number of mortgages and loans insured under this subsection, section 251, and section 252 in any fiscal year may not exceed 10 percent of the aggregate number of mortgages and loans insured by the Secretary under this title during the preceding fiscal year.". (c) The section heading of section 245 of such Act is amended to read as follows: "GRADUATED PAYMENT AND INDEXED MORTGAGES". GRADUATED PAYMENT MORTGAGES FOR MULTIFAMILY HOUSING SEC. 442. Section 245 of the National Housing Act, as amended in section 441, is amended by— (1) redesignating subsection (d) as subsection (e); and (2) inserting after subsection (c) the following new subsection: "(d)(l) The Secretary may insure, under any provision of this title relating to multifamily housing projects, mortgages and loans with provisions of varying rates of amortization corresponding to antici- pated variations in project income, to the extent the Secretary determines such mortgages or loans (A) have promise for expanding housing opportunities or meet special needs; (B) can be developed to include any safeguards for mortgagors, tenants, or purchasers that may be necessary to offset special risks of such mortgages; and (C) have a potential for acceptance in the private market. "(2) Notwithstanding any other provision of this title, the princi- pal obligation of a mortgage or loan insured pursuant to this subsection— "(A) may not exceed initially the percentage of the initial appraised value or replacement cost of the property involved that is required by the provision of this title under which such property is insured; and "(B) thereafter (including all interest to be deferred and added to principal) may not at any time be scheduled to exceed 100 percent of the projected value of such property. "(3) For purposes of this subsection, the projected value of a property shall be calculated by the Secretary by increasing the

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Page:United States Statutes at Large Volume 97.djvu/1257

 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1225 initial appraised value of such property at a rate not in excess of 2.5 percent per annum.". ADJUSTABLE RATE MORTGAGES FOR SINGLE FAMILY HOUSING SEC. 443. Title II of the National Housing Act is amended by adding at the end thereof the following new section: ADJUSTABLE RATE SINGLE FAMILY MORTGAGES "SEC. 251. (a) The Secretary may insure under any provision of this title a mortgage involving property upon which there is located a dwelling designed principally for occupancy by one to four fami- lies, where the mortgage provides for periodic adjustments by the mortgagee in the effective rate of interest charged. Such interest rate adjustments may be accomplished through adjustments in the monthly payment amount, the outstanding principal balance, or the mortgage term, or a combination of these factors, except that in no case may any extension of a mortgage term result in a total term in excess of 40 years. Adjustments in the effective rate of interest shall correspond to a specified national interest rate index approved in regulations by the Secretary, information on which is readily acces- sible to mortgagors from generally available published sources. Adjustments in the effective rate of interest shall (1) be made on an annual basis; (2) be limited, with respect to any single interest rate increase, to no more than 1 percent on the outstanding loan balance; and (3) be limited to a maximum increase of 5 percentage points above the initial contract interest rate over the term of the mortgage. "(b) The Secretary shall issue regulations requiring that the mortgagee make available to the mortgagor, at the time of loan application, a written explanation of the features of the adjustable rate mortgage, including a hypothetical payment schedule that displays the maximum potential increases in monthly payments to the mortgagor over the first 5 years of the mortgage term. "(c) The aggregate number of mortgages and loans insured under this section, section 245(c), and section 252 in any fiscal year may not exceed 10 percent of the aggregate number of mortgages and loans insured by the Secretary under this title during the preceding fiscal year.". 12 USC 1715Z-16. Information accessibility. Regulations. Ante, p. 1223. Infra. SHARED APPRECIATION MORTGAGES FOR SINGLE FAMILY HOUSING SEC. 444. Title II of the National Housing Act is amended by adding at the end thereof the following new section: SHARED APPRECIATION MORTGAGES FOR SINGLE FAMILY HOUSING "SEC. 252. (a) Notwithstanding any provision of this title that is inconsistent with this section, the Secretary may insure, under any provision of this title providing for insurance of mortgages on properties upon which there is located a dwelling designed princi- pally for occupancy by one to four families, a mortgage secured by a first lien on such a property or on the stock allocated to a dwelling unit in a residential cooperative housing corporation, which— "(1) provides for the mortgagee to share in a predetermined percentage of the property's or stock's net appreciated value; 12 USC 1715Z-17.

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