§ 3014. Capitalization

Footnotes

1. 1 So in original. Probably should be “have”.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1978

   National Consumer Cooperative Bank Act

   Pub. L. 95–351 title I § 104 · 92 Stat. 499

   Enacted · 12 U.S.C. § 3014

   Pub. L. 95–351, title I, § 104, Aug. 20, 1978, 92 Stat. 503

   Source evidence

   Code source credit
   Pub. L. 95–351, title I, § 104, Aug. 20, 1978, 92 Stat. 503

   Enacted provision · exact public law section
   Sec. 104. capitalization (a) The capital of the Bank shall consist of capital subscribed 12 USC 3014. by borrowers from the Bank, by cooperatives eligible to become borrowers, by organizations owned and controlled by such bor-rowers, by foundations, trust or charitable funds, by public bodies, and by the United States. Beginning with the fiscal year ending September Appropriation authorization. 30, 1979, the United States shall purchase class A stock and for that fiscal year there are authorized to be appropriated $100,000,000 for such purposes, and there are authorized to be appropriated for the next four succeeding fiscal years an amount not to exceed $200,000,000 in the aggregate. Any amounts so authorized but not appropriated or not utilized to purchase such stock of the Bank in any such fiscal year is authorized to be appropriated or reappropriated and so used in subsequent fiscal years. (b) The capital stock of the Bank shall include class A, class B, and class C stock and such other classes with such rights, powers, privileges, and preferences of the separate classes as may be specified, not inconsistent with law, in the bylaws of the Bank. Class A preferred stock held by the United States shall be a preferred stock with first preference with respect to assets and dividends over all other classes of stock issued by the Bank. So long as any class A stock is outstanding, the Bank shall not pay any dividend on any other class of stock at a rate greater than the statutory dividend payable on the class A stock. Class B and class C stock shall be common stock with voting rights as provided for herein and shall be issued only to eligible borrowers and organizations controlled by such borrowers or organizations eligible to borrow, and shall be transferable only on the books of the Bank and then only to another eligible borrower. No holder of voting stock of the Bank shall be entitled to more than one vote regardless of the number of shares of stock of other classes held, except as provided in subsection (g) of this section. (c) Class A stock with a par value of $100 per share shall be issued by the Bank to the Secretary of the Treasury on behalf of the United States in exchange for capital furnished pursuant to subsection (a) of this section. The holder of class A stock shall be entitled to dividends at a rate determined by the Secretary of the Treasury taking into consideration the average market yield, during the month preceding the close of each fiscal year, on outstanding marketable obligations of the United States of comparable maturity: Provided, That until October 1, 1990, such dividends shall not exceed 25 per centum of gross revenues for the year less necessary operating expenses, including a reserve for possible losses. Such dividends shall be payable annually into miscellaneous receipts of the Treasury and shall be cumulative. Any such dividend payment may be deferred by the Board of Directors with the approval of the Secretary of the Treasury, but any dividend payment so deferred shall bear interest at the same rate as the rate at which dividends accumulate on the class A stock. Without the approval of the Secretary of the Treasury, the Bank shall not pay any dividend or distribution on, or make any redemption or repurchase of, any other class of stock at any time when the cumulative dividends on the class A stock shall not have been paid in full (together with any unpaid interest thereon). Upon any liquidation or dissolution of the Bank, the holder of class A stock shall be entitled to receive out of the assets of the Bank available for distribution to its stockholders, prior to any payment to the holders of any other class of stock of the Bank, an amount not less than the aggregate par value of all class A stock outstanding, plus all accrued and unpaid dividends accrued thereon to and including the date of payment (together with all unpaid interest thereon). The class A stock shall be redeemed and retired as soon as practicable consistent with the purposes of this Act (such redemption to be at a price equal to the par value of the class A stock so redeemed plus cumulative dividends accrued thereon to the date of redemption): Provided, That beginning on October 1, 1990, there shall be redeemed as a minimum with respect to each fiscal year a number of shares of class A stock having an aggregate par value equal to the aggregate consideration received by the Bank for the issue of its class B and class C stock during that fiscal year. Each such redemption shall take place not later than ninety days after the close of each fiscal year. (d) Class B stock shall be held only by recipients of loans under section 105 of this Act, and such borrowers shall be required to own class B stock in an amount not less than 1 per centum of the face amount of the loan at the time the loan is made. Such borrowers may be required by the Bank to own additional class B or class C stock at the time the loan is made, but not to exceed an amount equal to 10 per centum of the face amount of the loan, or from time to time, as the Bank may determine. Such additional stock ownership requirements may be on the basis of the face amount of the loan, the outstanding balances, or on a percentage of interest payable during any year or any quarter thereof, as the Bank may determine will provide adequate capital for the operation of the Bank and equitable ownership thereof among borrowers. (e) Class C stock shall be available for purchase and shall be held only by borrowers or by organizations eligible to borrow under section 105 of this Act or by organizations controlled by such borrowers, and shall be entitled to dividends in the manner specified in the bylaws of the Bank. Such dividends shall be payable only from income, and, until all class A stock has been retired, the rate of such dividends shall not exceed the rate of the statutory dividend on class A stock. (f) Nonvoting stock of other classifications and other priorities may be issued at the discretion of the Board, to other investors, except that so long as any class A stock is outstanding, the Board shall not authorize or issue any class of stock, whether voting or nonvoting, that would rank prior or equal to the class A stock as to dividends or upon liquidation or dissolution. (g) (1) The bylaws of the Bank may provide for more than one vote on the basis of— (A) the amount of class B stock, class C stock, or both classes held, with such limitations as will encourage investments in class C stock; (B) the amount of patronage of the Bank; and (C) number of members in the cooperative. (2) Such bylaws shall avoid— (A) voting control of the Bank from becoming concentrated with the larger affluent or smaller less affluent organizations; (B) a disproportionately larger vote in one or more of the groups of cooperatives referred to in section 103(c) of this Act; and (C) the concentration of more than 5 per centum of the total voting control in any one class B or class C stockholder. (h) The Bank may accept nonreturnable capital contributions on which no interest, dividend, or patronage refund shall be payable from associations, foundations, or funds or public bodies or agencies at the discretion of the Board. For the purpose of accepting such contributions, the Bank will be a governmental unit within the meaning of section 170(b)(1)(A)(v) of the Internal Revenue Code of 1954. 26 USC 170. (i) After payment of all operating expenses of the Bank, including interest on its obligations, and after setting aside appropriate funds for reserves for losses, for cumulative dividends on class A stock and dividends on class C stock and for any redemption of class A stock in accordance with subsection (c), the Bank shall annually set aside the remaining earnings of the Bank for patronage refunds in the form of class B or C stock or allocated surplus in accordance with the bylaws of the Bank. After ten years from the date of issue of any such stock, or at such earlier time as all the Government-held stock is retired, patronage refunds may be made in cash, or partly in stock and partly in cash.

2. 1981

   Pub. L. 97–35 title III · 95 Stat. 357

   1. Inserted · 12 U.S.C. § 3014(a)

      Pub. L. 97–35, §§ 394(c)(1), 395(b)(2), inserted “by other public or private investors,” after “public bodies,”

   2. Substituted · 12 U.S.C. § 3014(a)

      Pub. L. 97–35, §§ 394(c)(1), 395(b)(2), substituted provisions authorizing appropriations for fiscal year 1982, for provisions authorizing appropriations beginning with the fiscal year ending Sept. 30, 1979, and authorizing use of amounts authorized but not appropriated

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 97–35, §§ 394(c)(1), 395(b)(2), inserted “by other public or private investors,” after “public bodies,” and substituted provisions authorizing appropriations for fiscal year 1982, for provisions authorizing appropriations beginning with the fiscal year ending Sept. 30, 1979, and authorizing use of amounts authorized but not appropriated.

   Enacted provision · exact public law
   TITLE III— BANKING, HOUSING, AND RELATED PROGRAMS Subtitle A— Housing and Community Development Sec. 300. short title This subtitle may be cited as the “Housing and Community Development Amendments of 1981”. PART 1— COMMUNITY AND ECONOMIC DEVELOPMENT Sec. 301. authorizations Section 103 of the Housing and Community Development 42 USC 5303. Act of 1974 is amended to read as follows: “Sec. 103. “authorizations The Secretary is authorized to make grants to States, units of general local government, and Indian tribes to carry out Appropriation. activities in accordance with the provisions of this title. There are authorized to be appropriated for these purposes not to exceed $4,166,000,000 for each of the fiscal years 1982 and 1983. Sums appropriated pursuant to this section shall remain available until expended.”. Sec. 302. statement of activities and review (a) The caption of section 104 of the Housing and 42 USC 5304. Community Development Act of 1974 is amended to read as follows: “statement of activities and review”. (b) Subsections (a), (b), and (c) of section 104 of such Act are amended to read as follows: “(a) (1) Prior to the receipt in any fiscal year of a grant under section 42 USC 5306; Post p. 389. 106(b) by any metropolitan city or urban county, under section 106(d) by any State, or under section 106(d)(2)(B) by any unit of general local government, the grantee shall have prepared a final statement of community development objectives and projected use of funds and shall have provided the Secretary with the certifications required in subsection (b) and, where appropriate, subsection (c). In the case of metropolitan cities and urban counties receiving grants pursuant to section 106(b) and in the case of units of general local government receiving grants pursuant to section 106(d)(2)(B), the statement of projected use of funds shall consist of proposed community development activities. In the case of States receiving grants pursuant to section 106(d), the statement of projected use of funds shall consist of the method by which the States will distribute funds to units of general local government. “(2) In order to permit public examination and appraisal of such statements, to enhance the public accountability of grantees, and to facilitate coordination of activities with different levels of government, the grantee shall— “(A) furnish citizens information concerning the amount of funds available for proposed community development and housing activities and the range of activities that may be undertaken; “(B) publish a proposed statement in such manner to afford affected citizens or, as appropriate, units of general local govern-ment an opportunity to examine its content and to submit comments on the proposed statement and on the community development performance of the grantee; and “(C) hold one or more public hearings to obtain the views of citizens on community development and housing needs. In preparing the final statement, the grantee shall consider any such comments and views and may, if deemed appropriate by the grantee, modify the proposed statement. The final statement shall be made available to the public, and a copy shall be furnished to the Secretary together with the certifications required under subsection (b) and, where appropriate, subsection (c). “(b) Any grant under section 106 shall be made only if the grantee 42 USC 5306. certifies to the satisfaction of the Secretary that— “(1) the grantee is in full compliance with the requirements of subsection (a)(2)(A), (B), and (C) and has made the final statement available to the public; “(2) the grant will be conducted and administered in conformity with Public Law 88–352 and Public Law 90–284; 42 USC 2000a note; 82 Stat. 73. Projected use of funds. “(3) the projected use of funds has been developed so as to give maximum feasible priority to activities which will benefit low and moderate-income families or aid in the prevention or elimination of slums or blight; the projected use of funds may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs; and “(4) the grantee will comply with the other provisions of this title and with other applicable laws. “(c) (1) Any grant made under section 106(b) shall be made only if Grants. the unit of general local government certifies that it is following a current housing assistance plan which has been approved by the Secretary and which— “(A) accurately surveys the condition of the housing stock in the community and assesses the housing assistance needs of lower income persons (including elderly and handicapped persons, large families, owners of homes requiring rehabilitation assistance, and persons displaced or to be displaced) residing in or expected to reside in the community as a result of existing or projected changes in employment opportunities and population in the community (and those elderly persons residing in or expected to reside in the community), or as estimated in a community accepted State or regional housing opportunity plan approved by the Secretary, and identifies housing stock which is in a deteriorated condition, including the impact of conversion of rental housing to condominium or cooperative ownership on such needs; “(B) specifies a realistic annual goal for the number of dwelling units or lower income persons to be assisted, including (i) the relative proportion of new, rehabilitated, and existing dwelling units, including existing rental and owner occupied dwelling units to be upgraded and thereby preserved, (ii) the sizes and types of housing projects and assistance best suited to the needs of lower income persons in the community, and (iii) in the case of subsidized rehabilitation, adequate provisions to assure that a preponderance of persons assisted should be of low and moderate income; and “(C) indicates the general locations of proposed housing for lower income persons, with the objective of (1) furthering the revitalization of the community, including the restoration and rehabilitation of stable neighborhoods to the maximum extent possible, and the reclamation of the housing stock where feasible through the use of a broad range of techniques for housing restoration by local government, the private sector, or community organizations, including provision of a reasonable opportunity for tenants displaced as a result of such activities to relocate in their immediate neighborhood, (ii) promoting greater choice of housing opportunities and avoiding undue concentrations of assisted persons in areas containing a high proportion of low-income persons, and (iii) assuring the availability of public facilities and services adequate to serve proposed housing projects. “(2) The Secretary shall establish such dates and manner for the submission of housing assistance plans described in paragraph (1) as the Secretary may prescribe.”. (c) (1) Section 104(d) of such Act is amended to read as follows: “(d) Each grantee shall submit to the Secretary, at a time determined by the Secretary, a performance report concerning the use of funds made available under section 106, together with an assessment by the grantee of the relationship of such use to the objectives identified in the grantee’s statement under subsection (a). The Secretary shall, at least on an annual basis, make such reviews and audits as may be necessary or appropriate to determine— “(1) in the case of grants made under section 106(b) or section Post, p. 389. 106(d)(2)(B), whether the grantee has carried out its activities and, where applicable, its housing assistance plan in a timely manner, whether the grantee has carried out those activities and its certifications in accordance with the requirements and the primary objectives of this title and with other applicable laws, and whether the grantee has a continuing capacity to carry out those activities in a timely manner; and “(2) in the case of grants to States made under section 106(d), whether the State has distributed funds to units of general local government in a timely manner and in conformance to the method of distribution described in its statement, whether the State has carried out its certifications in compliance with the requirements of this title and other applicable laws, and whether the State has made such reviews and audits of the units of general local government as may be necessary or appropriate to determine whether they have satisfied the applicable performance criteria described in paragraph (1) of this subsection. The Secretary may make appropriate adjustments in the amount of the annual grants in accordance with the Secretary’s findings under this subsection. With respect to assistance made available to units of Post, p. 389. general local government under section 106(d), the Secretary may adjust, reduce, or withdraw such assistance, or take other action as appropriate in accordance with the Secretary’s reviews and audits under this subsection, except that funds already expended on eligible activities under this title shall not be recaptured or deducted from future assistance to such units of general local government.”. (2) The amendment made by paragraph (1) shall take effect on October 1, 1982. (d) Section 104 of such Act is amended by striking out subsections (e) and (f) and redesignating subsections (g), (h), (i), and (j) as subsections (e), (f), (g), and (h). (e) Section 104(f) of such Act, as redesignated by subsection (d) of Ante, p. 86. this section, is amended— (1) by striking out “applicants” in paragraph (1) and inserting in lieu thereof “recipients of assistance under this title”; (2) by striking out “applicant” wherever it appears and inserting in lieu thereof “recipient of assistance under this title”; (3) by striking out “applications and” in the last sentence of paragraph (2); and (4) by adding the following new paragraph at the end thereof: “(4) In the case of grants made to States pursuant to section 106(d), Post, p. 389. the State shall perform those actions of the Secretary described in paragraph (2) and the performance of such actions shall be deemed to satisfy the Secretary’s responsibilities referred to in the second sentence of such paragraph.”. (f) Section 104(g) of such Act, as redesignated by subsection (d) of Ante, p. 386. this section, is amended— (1) by striking out paragraph (1) and inserting in lieu thereof the following: “(1) Units of general local government receiving assistance under this title may receive funds, in one payment, in an amount not to exceed the total amount designated in the grant (or, in the case of a unit of general local government receiving a distribution from a State pursuant to section 106(d), not to exceed the total amount of such distribution) for use in establishing a revolving loan fund which is to be established in a private financial institution and which is to be used to finance rehabilitation activities assisted under this title. Rehabilitation activities authorized under this section shall begin within 45 days after receipt of such payment.”; and (2) by striking out the last two sentences of paragraph (2). Sec. 303. eligible activities (a) Section 105(a) of the Housing and Community Development Act of 1974 is amended— 42 USC 5305. (1) by striking out paragraph (8) and inserting in lieu thereof the following: “(8) provision of public services, including but not limited to those concerned with employment, crime prevention, child care, health, drug abuse, education, energy conservation, welfare or recreation needs, if such services have not been provided by the unit of general local government (through funds raised by such unit, or received by such unit from the State in which it is located) during any part of the twelve-month period immediately preceding the date of submission of the statement with respect to which funds are to be made available under this title, and which are to be used for such services, unless the Secretary finds that the discontinuation of such services was the result of events not within the control of the unit of general local government, except that not more than 10 per centum of the amount of any assistance to a unit of general local government under this title may be used for activities under this paragraph;”; (2) by inserting the following before the semicolon at the end of paragraph (13) “, and including the carrying out of activities as described in section 701(e) of the Housing Act of 1954 on the date 94 Stat. 1662. prior to the date of enactment of the Housing and Community Development Amendments of 1981”; Ante, p. 384. (3) by striking out “and” at the end of paragraph (15); (4) by striking out the period at the end of paragraph (16) and inserting in lieu thereof “; and”; and (5) by adding at the end thereof the following new paragraph: “(17) provision of assistance to private, for-profit entities, when the assistance is necessary or appropriate to carry out an economic development project.”. (b) In fiscal years 1982, 1983, and 1984, the Secretary may waive the limitation on the amount of funds which may be used for public services activities under section 105(a)(8) of the Housing and Community Ante, p. 387. Development Act of 1974, as amended by this Act, in the case of a unit of general local government which, during fiscal year 1981, allocated more than 10 per centum of funds received under title I of 42 USC 5301. the Housing and Community Development Act of 1974 for such activities. Sec. 304. allocation and distribution of funds (a) Section 106(a) of the Housing and Community Development 42 USC 5306. Act of 1974 is amended to read as follows: “(a) Of the amount approved in an appropriation Act under section Ante, p. 384. Post, pp. 391, 392. 103 for grants in any year (excluding the amounts provided for use in accordance with section 107 and section 119), 70 per centum shall be allocated by the Secretary to metropolitan cities and urban counties. Except as otherwise specifically authorized, each metropolitan city and urban county shall be entitled to an annual grant from such allocation in an amount not exceeding its basic amount computed pursuant to paragraph (1) or (2) of subsection (b).”. (b) Section 106 of such Act is amended by striking out subsection (c) and redesignating subsections (d), (e), (f), and (g) as subsections (c), (d), (e), and (f), respectively. (c) Section 106(c), as redesignated by subsection (b) of this section, is amended to read as follows: “(c) (1) Except as provided in paragraph (2), any amounts allocated to a metropolitan city or an urban county pursuant to the preceding provisions of this section which are not received by the city or county for a fiscal year because of failure to meet the requirements of section Ante, p. 384. Ante, p. 386. 42 USC 5311. 104(a), (b), or (c), or which become available as a result of actions under section 104(d) or 111, shall be reallocated in the succeeding fiscal year to the other metropolitan cities and urban counties in the same metropolitan area which certify to the satisfaction of the Secretary that they would be adversely affected by the loss of such amounts from the metropolitan area. The amount of the share of funds reallocated under this paragraph for any metropolitan city or urban county shall bear the same ratio to the total of such reallocated funds in the metropolitan area as the amount of funds awarded to the city or county for the fiscal year in which the reallocated funds become available bears to the total amount of funds awarded to all metropolitan cities and urban counties in the same metropolitan area for that fiscal year, except that— “(A) in determining the amounts awarded to cities or counties for purposes of calculating shares pursuant to this sentence, there shall be excluded from the award of any city or county any amounts which become available as a result of actions against such city or county under section 111; “(B) in reallocating amounts resulting from an action under section 104(d) or section 111, the city or county against whom any such action was taken shall be excluded from the calculation of shares for purposes of reallocating the amounts becoming available as a result of such action; and “(C) in no event may the share of reallocated funds for any metropolitan city or urban county exceed 25 per centum of the amount awarded to the city or county under section 106(b) for the 42 USC 5306. fiscal year in which the reallocated funds under this paragraph become available. Any amounts allocated under section 106(b) which become available for reallocation and for which no metropolitan city or urban county qualifies under this paragraph shall be added to amounts available for allocation under such section 106(b) in the succeeding fiscal year. “(2) Notwithstanding any other provision of this title, the Secretary shall make grants from amounts authorized for use under section 106(b) by the Department of Housing and Urban Development—Independent Agencies Appropriation Act, 1981, in accordance with 94 Stat. 3044. the provisions of this title which governed grants with respect to such amounts, as such provisions existed prior to the effective date of the Housing and Community Development Amendments of 1981, except Ante, p. 384. that any such amounts which are not obligated before January 1, 1982, shall be reallocated in accordance with paragraph (1).”. (d) Section 106(d)(1) of such Act, as redesignated by subsection (b) of this section, is amended— Ante, p. 388. (1) by striking out “section 103(a)” and all that follows through “nonmetropolitan areas of each State” in the first sentence and inserting in lieu thereof the following: “section 103 for grants in any year (excluding the amounts provided for use in accordance with section 107 and section 119), 30 per centum shall be Post, pp. 391, 392. allocated among the States for use in nonentitlement areas. The allocation for each State shall be”; and (2) by striking out “nonmetropolitan” wherever it appears and inserting in lieu thereof “nonentitlement”. (e) Section 106(d) of such Act, as redesignated by subsection (b) of this section, is amended by striking out paragraphs (2) and (3) and inserting in lieu thereof the following: “(2) (A) Amounts allocated under paragraph (1) shall be distributed to units of general local government located in nonentitlement areas of the State to carry out activities in accordance with the provisions of this title— “(i) by the State, consistent with the statement submitted under section 104(a); or Ante, p. 384. “(ii) by the Secretary, in any case described in subparagraph (B), for use by units of general local government in accordance with paragraph (3)(B). Notwithstanding any provision of this title, the Secretary shall make grants from amounts authorized for use in nonentitlement areas by the Department of Housing and Urban Development—Independent Agencies Appropriation Act, 1981, in accordance with the provisions 94 Stat. 3044. of this title which governed grants with respect to such amounts, as such provisions existed prior to the effective date of the Housing and Community Development Amendments of 1981. Any amounts under Ante, p. 384. the preceding sentence (except amounts for which preapplications have been approved by the Secretary prior to October 1, 1981, and which have been obligated by January 1, 1982) which are or become available for obligation after fiscal year 1981 shall be available for distribution in the State in which the grants from such amounts were made, by the State or by the Secretary, whichever is distributing the State allocation in the fiscal year in which such amounts are or become available. “(B) The Secretary shall distribute amounts allocated under paragraph (1) where— “(i) the State has elected, in such manner and before such time as the Secretary may prescribe, not to distribute such amounts; or “(ii) the State has failed to submit the certifications described in subparagraph (C). “(C) To receive and distribute amounts allocated under paragraph (1), the Governor must certify that the State, with respect to units of general local government in nonentitlement areas— “(i) engages or will engage in planning for community development activities; “(ii) provides or will provide technical assistance to units of general local government in connection with community development programs; “(iii) will provide, out of State resources, funds for community development activities in an amount which is at least 10 per centum of the amounts allocated for use in the State pursuant to paragraph (1); and “(iv) has consulted with local elected officials from among units of general local government located in nonentitlement areas of that State in determining the method of distribution of funds required by subparagraph (A). “(3) (A) If the State receives and distributes such amounts, it shall be responsible for the administration of funds so distributed. The State shall pay from its own resources all administrative expenses incurred by the State in carrying out its responsibilities under this title, except that from the amounts received for distribution in nonentitlement areas, the State may deduct an amount not to exceed 50 per centum of the costs incurred by the State in carrying out such responsibilities. Amounts so deducted shall not exceed 2 per centum of the amount so received. “(B) If the Secretary distributes such amounts, the distribution shall be made in accordance with determinations of the Secretary pursuant to statements submitted and the other requirements of Ante, p. 384. section 104 (other than subsection (c)) and in accordance with regulations and procedures prescribed by the Secretary. “(C) Any amounts allocated for use in a State under this subsection Ante, p. 386. 42 USC 5311. which become available as a result of actions under section 104(d) or 111 shall— “(i) in the case of actions against units of general local government in nonentitlement areas, be added to amounts available for distribution in the State in the fiscal year in which the amounts become so available; or “(ii) in the case of actions against the State, be added to amounts available for distribution in the State in the succeeding fiscal year. Amounts reallocated under this subparagraph shall be available for distribution by the State or by the Secretary, whichever is distributing the State allocation in the fiscal year in which such reallocated amounts are added. “(4) In computing amounts under paragraph (1), Indian tribes shall be excluded.”. (f) Section 106(f), as redesignated by subsection (b) of this section, is amended by striking out “(1)” and all that follows through “106(e)” and inserting in lieu thereof “all basic grant entitlement amounts”. Sec. 305. discretionary fund Section 107 of the Housing and Community Development Act of 1974 is amended to read as follows: 42 USC 5307. “Sec. 107. “discretionary fund (a) Of the total amount approved in appropriation Acts under section 103 for each of the fiscal years 1982 and 1983, not more Ante, p. 384. than $60,000,000 for each of the fiscal years 1982 and 1983 may be set aside in a special discretionary fund for grants under subsection (b). Grants under this section are in addition to any other grants which may be made under this title to the same entities for the same purposes. “(b) From amounts set aside under subsection (a), the Secretary is authorized to make grants— “(1) in behalf of new communities assisted under title VII of the Housing and Urban Development Act of 1970 or title IV of 42 USC 4501. 42 USC 3901. the Housing and Urban Development Act of 1968 or in behalf of new community projects assisted under title X of the National Housing Act which meet the eligibility standards set forth in 12 USC 1749aa. title VII of the Housing and Urban Development Act of 1970 and which were the subject of an application or preapplication under such title prior to January 14, 1975; “(2) in Guam, the Virgin Islands, American Samoa, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands; “(3) to Indian tribes; and “(4) to States, units of general local government, Indian tribes, Technical Assistance. or areawide planning organizations for the purpose of providing technical assistance in planning, developing, and administering assistance under this title, and to States and units of general local government for implementing special projects otherwise authorized under this title. The Secretary may also provide, directly or through contracts, technical assistance under this paragraph to such governmental units, or to a group designated by such a governmental unit for the purpose of assisting that governmental unit to carry out assistance under this title. “(c) Amounts set aside for use under subsection (b) in any fiscal year but not used in that year shall remain available for use in subsequent fiscal years in accordance with the provisions of that subsection. “(d) (1) Except as provided in paragraph (2), no grant may be made under this section or section 119 unless the applicant provides Post, p. 392. satisfactory assurances that its program will be conducted and administered in conformity with Public Law 88–352 and Public Law 90–284. 42 USC 2000a note; 82 Stat. 73. “(2) No grant may be made to an Indian tribe under this section or section 119 unless the applicant provides satisfactory assurances that its program will be conducted and administered in conformity with title II of Public Law 90–284. The Secretary may waive, in connection Waiver. 25 USC 1301. 42 USC 5309, 5310. with grants to Indian tribes, the provisions of section 109 and section 110. “(3) The Secretary may accept a certification from the applicant that it has complied with the requirements of paragraph (1) or (2), as appropriate.” . Sec. 306. nondiscrimination Section 109(a) of the Housing and Community Development 42 USC 5309. Act of 1974 is amended by adding the following new sentence at the end thereof: “Any prohibition against discrimination on the basis 42 USC 6101 note. of age under the Age Discrimination Act of 1975 or with respect to an otherwise qualified handicapped individual as provided in section 504 29 USC 794. of the Rehabilitation Act of 1973 shall also apply to any such program or activity.”. Sec. 307. “transitional provisions (a) Any amounts appropriated for any fiscal year before fiscal year 1982 in a Department of Housing and Urban Development— Independent Agencies Appropriation Act or a Supplemental Appropriation Act under the head “community development grants” which are or become available for obligation on or after October 1, 1981, shall remain available as provided by law, and shall be used in accordance with the following: (1) funds authorized for use under section 106(b) of the Housing 42 USC 5306. and Community Development Act of 1974 (“such Act”) before October 1, 1981, shall be available for use as provided by section Ante, p. 388. 42 USC 5307. 106(c) of such Act as amended by this Act; (2) funds authorized for use under section 107 of such Act before October 1, 1981, shall be available for use as provided by Ante, p. 391. section 107(a) of such Act as amended by this Act; and (3) funds authorized for use under section 106(c) or (e) of such Act before October 1, 1981, shall be available for use as provided Ante, p. 389. by section 106(d)(2)(A) of such Act as amended by this Act. (b) Any grant or loan which, prior to the effective date of any provision of this part, was obligated and governed by any authority amended by any provision of this part shall continue to be governed by the provisions of such authority as they existed immediately before such effective date. Sec. 308. urban development action grants (a) Section 119 of the Housing and Community Development 42 USC 5318. Act of 1974 is amended to read as follows: “Sec. 119. “urban development action grants (a) The Secretary is authorized to make urban development action grants to cities and urban counties which are experiencing severe economic distress to help stimulate economic development activity needed to aid in economic recovery. Of the total amount 42 USC 5303. approved in appropriation Acts under section 103 for each of the fiscal years 1982 and 1983, not more than $500,000,000 shall be available for each of the fiscal years 1982 and 1983 for grants under this section. “(b) (1) Urban development action grants shall be made only to cities and urban counties which have, in the determination of the Secretary, demonstrated results in providing housing for low- and moderate-income persons and in providing equal opportunity in housing and employment for low- and moderate-income persons and Regulations. members of minority groups. The Secretary shall issue regulations establishing criteria in accordance with the preceding sentence and setting forth minimum standards for determining the level of economic distress of cities and urban counties for eligibility for such grants. These standards shall take into account factors such as the age of housing; the extent of poverty; the extent of population lag; growth of per capita income; and, where data are available, the extent of unemployment and job lag. “(2) A city or urban county which fails to meet the minimum standards established pursuant to paragraph (1) shall be eligible for assistance under this section if it meets the requirements of the first sentence of such paragraph and— “(A) in the case of a city with a population of fifty thousand persons or more or an urban county, contains an area (i) composed of one or more contiguous census tracts, enumeration districts, or block groups, as defined by the United States Bureau of the Census, having at least a population of ten thousand persons or 10 per centum of the population of the city or urban county; (ii) in which at least 70 per centum of the residents have incomes below 80 per centum of the median income of the city or urban county; and (iii) in which at least 30 per centum of the residents have incomes below the national poverty level; or “(B) in the case of a city with a population of less than fifty thousand persons, contains an area (i) composed of one or more contiguous census tracts, enumeration districts, or block groups or other areas defined by the United States Bureau of the Census or for which data certified by the United States Bureau of the Census are available having at least a population of two thousand five hundred persons or 10 per centum of the population of the city, whichever is greater; (ii) in which at least 70 per centum of the residents have incomes below 80 per centum of the median income of the city; and (iii) in which at least 30 per centum of the residents have incomes below the national poverty level. The Secretary shall use up to, but not more than, 20 per centum of the funds appropriated for use in any fiscal year under this section for the purpose of making grants to cities and urban counties eligible under this paragraph. “(c) Applications for assistance under this section shall— Contents. “(1) in the case of an application for a grant under subsection (b)(2), include documentation of grant eligibility in accordance with the standards described in that subsection; “(2) set forth the activities for which assistance is sought, including (A) an estimate of the costs and general location of the activities; (B) a summary of the public and private resources which are expected to be made available in connection with the activities, including how the activities will take advantage of unique opportunities to attract private investment; and (C) an analysis of the economic benefits which the activities are expected to produce; “(3) contain a certification satisfactory to the Secretary that the applicant, prior to submission of its application, (A) has held public hearings to obtain the views of citizens, particularly residents of the area in which the proposed activities are to be carried out, and (B) has analyzed the impact of these proposed activities on the residents, particularly those of low and moderate income, of the residential neighborhood, and on the neighborhood in which they are to be carried out; and “(4) contain a certification satisfactory to the Secretary that the applicant, prior to submission of its application, (A) has identified all properties, if any, which are included on the National Register of Historic Places and which, as determined by the applicant, will be affected by the project for which the application is made; (B) has identified all other properties, if any, which will be affected by such project and which, as determined by the applicant, may meet the criteria established by the Secretary of the Interior for inclusion on such Register, together with documentation relating to the inclusion of such properties on the Register; (C) has determined the effect, as determined by the applicant, of the project on the properties identified pursuant to clauses (A) and (B); and (D) will comply with the requirements 94 Stat. 1620. 42 USC 5320. Selection criteria, establishment. of section 121. “(d) (1) Except in the case of a city or urban county eligible under subsection (b)(2), the Secretary shall establish selection criteria for grants under this section which must include (A) as the primary criterion, the comparative degree of economic distress among applicants, as measured (in the case of a metropolitan city or urban county) by the differences in the extent of growth lag, the extent of poverty, and the adjusted age of housing in the metropolitan city or urban county; (B) other factors determined to be relevant by the Secretary in assessing the comparative degree of economic deterioration in cities and urban counties; and (C) at least the following other criteria: demonstrated performance of the city or urban county in housing and community development programs; the extent to which the grant will stimulate economic recovery by leveraging private investment; the number of permanent jobs to be created and their relation to the amount of grant funds requested; the proportion of permanent jobs accessible to lower income persons and minorities, including persons who are unemployed; the impact of the proposed activities on the fiscal base of the city or urban county and its relation to the amount of grant funds requested; the extent to which State or local government funding or special economic incentives have been committed; and the feasibility of accomplishing the proposed activities in a timely fashion within the grant amount available. “(2) For the purpose of making grants with respect to areas described in subsection (b)(2), the Secretary shall establish selection criteria, which must include (A) factors determined to be relevant by the Secretary in assessing the comparative degree of economic deterioration among eligible areas, and (B) such other criteria as the Secretary may determine, including at a minimum the criteria listed in paragraph (1)(C) of this subsection. “(e) The Secretary may not approve any grant to a city or urban county eligible under subsection (b)(2) unless— “(1) the grant will be used in connection with a project located in an area described in subsection (b)(2), except that the Secretary may waive this requirement where the Secretary determines (A) that there is no suitable site for the project within that area, (B) the project will be located directly adjacent to that area, and (C) the project will contribute substantially to the economic development of that area; “(2) the city or urban county has demonstrated to the satisfaction of the Secretary that basic services supplied by the city or urban county to the area described in subsection (b)(2) are at least equivalent, as measured by per capita expenditures, to those supplied to other areas within the city or urban county which are similar in population size and physical characteristics and which have median incomes above the median income for the city or urban county; “(3) the grant will be used in connection with a project which will directly benefit the low- and moderate-income families and individuals residing in the area described in subsection (b)(2); and “(4) the city or urban county makes available, from its own funds or from funds received from the State or under any Federal program which permits the use of financial assistance to meet the non-Federal share requirements of Federal grant-in-aid programs, an amount equal to 20 per centum of the grant to be available under this section to be used in carrying out the activities described in the application. “(f) Activities assisted under this section may include such activities, in addition to those authorized under section 105(a), as the 42 USC 5305. Secretary determines to be consistent with the purposes of this section. “(g) The Secretary shall, at least on an annual basis, make reviews Reviews and audits. and audits of recipients of grants under this section as necessary to determine the progress made in carrying out activities substantially in accordance with approved plans and timetables. The Secretary may adjust, reduce, or withdraw grant funds, or take other action as appropriate in accordance with the findings of these reviews and audits, except that funds already expended on eligible activities under this title shall not be recaptured or deducted from future grants made to the recipient. “(h) No assistance may be provided under this section for projects Industrial or commercial plants or facilities, assistance. intended to facilitate the relocation of industrial or commercial plants or facilities from one area to another, unless the Secretary finds that the relocation does not significantly and adversely affect the unemployment or economic base of the area from which the industrial or commercial plant or facility is to be relocated. “(i) Not less than 25 per centum of the funds made available for grants under this section shall be used for cities with populations of less than fifty thousand persons which are not central cities of a metropolitan statistical area. “(j) A grant may be made under this section only where the Secretary determines that there is a strong probability that (1) the non-Federal investment in the project would not be made without the grant, and (2) the grant would not substitute for non-Federal funds which are otherwise available to the project. “(k) In making grants under this section, the Secretary shall take such steps as the Secretary deems appropriate to assure that the amount of the grant provided is the least necessary to make the project feasible. “(l) For purposes of this section, the Secretary may reduce or waive the requirement in section 102(a)(5)(B)(ii) that a town or township be 42 USC 5302. closely settled. “(m) In the case of any application which identifies any property in accordance with subsection (c)(4)(B), the Secretary may not commit funds with respect to an approved application unless the applicant has certified to the Secretary that the appropriate State historic preservation officer and the Secretary of the Interior have been provided an opportunity to take action in accordance with the provisions of section 121(b). 94 Stat. 1620. 42 USC 5320. “City.” “(n) (1) For the purposes of this section, the term ‘city’ includes Guam, the Virgin Islands, and Indian tribes. “(2) The Secretary may not approve a grant to an Indian tribe under this section unless the tribe (A) is located on a reservation or in an Alaskan Native Village, and (B) is an eligible recipient under the State and Local Fiscal Assistance Act of 1972. 31 USC 1221 note. “(o) If no amounts are set aside under, or amounts are precluded from being appropriated for this section for fiscal years after fiscal year 1983, any amount which is or becomes available for use under this section after fiscal year 1983 shall be added to amounts appropriated 42 USC 5303. under section 103.”. (b) Section 121 of such Act is amended by striking out “subsection (c)(7)(B)” in subsection (b) and inserting in lieu thereof “subsection (c)(4)(B)”. (c) The amendments made by subsections (a) and (b) shall become effective on the effective date of regulations implementing such subsections. As soon as practicable, but not later than January 1, 1982, the Secretary shall issue such final rules and regulations as the Secretary determines are necessary to carry out such subsections. Sec. 309. community development technical amendments (a) Section 102(a) of the Housing and Community Development 42 USC 5302. Act of 1974 is amended— (1) by striking out paragraphs (18) and (19); (2) by inserting immediately after paragraph (6) the following: “(7) The term ‘nonentitlement area’ means an area which is not a metropolitan city or part of an urban county.”; and (3) by redesignating the remaining paragraphs accordingly. (b) Section 102(c) of such Act is amended by striking out “a Community Development Program in whole or in part” and inserting in lieu thereof “activities assisted under this title”. (c) The first sentence of section 102(d) of such Act is amended— (1) by striking out “103(a)(1)” and inserting in lieu thereof “103”; and (2) by striking out “unless the application by the urban county is disapproved or withdrawn prior to or during such three-year period” and inserting in lieu thereof “unless the urban county does not receive a grant for any year during such three-year period”. (d) Section 104(j) of such Act is amended by striking out “planning a joint community development program, meeting the application requirements of this section, and implementing such program” and inserting in lieu thereof “submitting a statement under section 104(a) and carrying out activities under this title”. (e) The caption of section 105 of such Act is amended to read as follows: “eligible activities”. (f) Section 105(a) of such Act is amended— (1) by striking out the first sentence and “These activities” in the second sentence and inserting in lieu thereof “Activities assisted under this title”; (2) by striking out “program” in paragraph (6); (3) by striking out “the Community Development Program” in paragraph (9) and inserting in lieu thereof “activities assisted under this title”; (4) by striking out “to the community development program” in paragraph (11); (5) by striking out “(as specifically” and all that follows through “104(a)(1)” in paragraph (14) and inserting in lieu thereof “which are carried out by public or private nonprofit entities”; and (6) by striking out “(as specifically described in the application submitted pursuant to section 104)” in paragraph (15). (g) Section 105(b) of such Act is amended by striking out “a grant” and inserting in lieu thereof “assistance”. (h) The second sentence of section 106(b)(4) of such Act is amended by striking out “for a grant under subsection (c) or (e)” and inserting in lieu thereof the following: “to receive assistance under subsection (d)”. (i) Section 108(d)(2) of such Act is amended by striking out 42 USC 5308. “approved or”. (j) The first sentence of section 110 of such Act is amended by 42 USC 5310. striking out “grants” and inserting in lieu thereof “assistance”. (k) The first sentence of section 112(a) of such Act is amended by 42 USC 5312. striking out “103(a)” and inserting in lieu thereof “103”. (l) Section 113(a)(2) of such Act is amended by striking out “as 42 USC 5813. approved by the Secretary”. (m) Section 116(b) of such Act is amended to read as follows: 94 Stat. 1622. 42 USC 5316. “(b) In the case of funds available for any fiscal year, the Secretary shall not consider any statement under section 104(a), unless such statement is submitted on or prior to such date (in that fiscal year) as the Secretary shall establish as the final date for submission of statements in that year.”. Sec. 310. community development miscellaneous amendments (a) Section 102(a)(4) of the Housing and Community Development Act of 1974 is amended by inserting the following before 42 USC 5302. the period at the end thereof: “or until September 30, 1982, whichever is later”. (b) Section 102(a)(6) of such Act is amended by inserting at the end thereof the following: “Any urban county (A) which qualified as an urban county in fiscal year 1981, (B) the population of which includes all of the population of the county (other than the population of metropolitan cities therein), and (C) the population of which for fiscal year 1982 falls below the amount required by clause (B) of the preceding sentence by reason of the 1980 decennial census shall be considered as meeting the population requirements of such clause for fiscal year 1982 and shall not be subject to the provisions of section 102(d) in that fiscal year.”. Sec. 311. rehabilitation loans (a) Subsection (a)(1)(D) of section 312 of the Housing Act of 1964 is amended by striking out “an approved community development 42 USC 1452b. program” and inserting in lieu thereof “community development activities”. (b) Subsection (d) of such section is amended— 94 Stat. 1622. (1) by inserting “and” after “October 1, 1979,” in the first sentence; (2) by striking out “and not to exceed $129,000,000 for the fiscal year beginning on October 1, 1981,” in the first sentence; and (3) by striking out the last sentence. (c) Subsection (h) of such section is amended by striking out “1982” each place it appears and inserting in lieu thereof “1983”. (d) Subsection (j)(1) of such section is amended by striking out the second sentence. Sec. 312. urban homesteading The first sentence of section 810(h) of the Housing and Community Development Act of 1974 is amended by striking out 12 USC 1706e. “and not to exceed $26,000,000 for the fiscal year 1979” and inserting in lieu thereof “not to exceed $26,000,000 for the fiscal year 1979, and not to exceed $13,467,000 for the fiscal year 1983”. Sec. 313. repealers (a) Title VII of the Housing and Community Development 42 USC 8121 note. 94 Stat. 1662. 40 USC 461. Amendments of 1978 is hereby repealed. (b) Section 701 of the Housing Act of 1954 is hereby repealed. Sec. 314. neighborhood reinvestment corporation Section 608(a) of the Neighborhood Reinvestment Corporation 94 Stat. 1645. 42 USC 8107. Act is amended— (1) by striking out “and” after “1980,”; and (2) by inserting the following before the period at the end thereof: “, and not to exceed $14,950,000 for fiscal year 1982”. Sec. 315. report on block grant program Not later than 270 days after the date of enactment of this Act, the Secretary of Housing and Urban Development shall report to the Congress on administrative and legislative steps that can be taken to— (1) require all grantees to concentrate their block grant funds in distressed geographic areas small enough so that visible improvements can be achieved in a reasonable time period and to ensure that claimed benefits to low- and moderate-income persons are, in actuality, occurring; (2) reduce the broad list of activities currently eligible so that funds can be focused on those activities which meet the cities’ most urgent revitalization needs; (3) develop overall income eligibility requirements for recipients of block grant supported rehabilitation; and (4) limit eligible rehabilitation work to that which is essential to restore the housing unit to a decent, safe, and sanitary or energy efficient condition, specifically prohibiting nonessential and luxury items, so that more homes needing basic repairs can be rehabilitated. PART 2— HOUSING ASSISTANCE PROGRAMS Sec. 321. housing authorizations (a) The first sentence of section 5(c)(1) of the United States Housing Act of 1937 is amended by inserting immediately after “1980” the following: “, and by $906,985,000 on October 1, 1981”. (b) The second sentence of section 5(c)(1) of such Act is amended by striking out “Acts;” and all that follows through the period and inserting in lieu thereof the following: “Acts. In addition, the aggregate amount which may be obligated over the duration of the contracts may not exceed $31,200,000,000 with respect to the additional authority provided on October 1, 1980, and $18,087,370,000 with respect to the additional authority provided on October 1, 1981.”. (c) Section 5(c) of such Act is amended by— (1) redesignating paragraphs (3), (4), and (5) as paragraphs (4), (5), and (6), respectively; and (2) inserting immediately after paragraph (2) the following: “(3) (A) Of the additional authority approved in appropriation Acts and made available on October 1, 1981, the Secretary shall make available at least $75,000,000 for assistance to projects under section 94 Stat. 1625. 42 USC 1437l. 14. “(B) Of the balance of the additional authority referred to in the preceding subparagraph which remains after deducting the amount to be provided for assistance to projects under section 14, the 94 Stat. 1625. 42 USC 1437l. Secretary shall allocate such authority for use in different areas and communities in accordance with section 213(d) of the Housing and Community Development Act of 1974, except that on a national basis 42 USC 1439. the Secretary may not enter into contracts aggregating— “(i) more than 45 per centum of such balance for existing units assisted under this Act; and “(ii) more than 55 per centum of such balance for newly constructed and substantially rehabilitated units assisted under this Act. “(C) After making allocations referred to in subparagraph (B), the General local government preferences, accommodation. Secretary shall, to the extent allowable within the percentage limitations contained in such subparagraph and within the available contract and budget authority, accommodate the preferences of units of general local government, which preferences shall be established after consultation with the appropriate public housing agencies, regarding (i) the mix among newly constructed, substantially rehabilitated, existing, or moderately rehabilitated units; (ii) the programs under which assistance is to be provided; and (iii) the extent to which such allocation should be used for comprehensive improvement assistance under section 14.”. (d) Section 9(c) of such Act is amended— 42 USC 1437g. (1) by striking out “and” after “on or after October 1, 1979,”; and (2) by inserting before the period at the end thereof the following: “, and not to exceed $1,500,000,000 on or after October 1, 1981”. (e) Section 213(d) of the Housing and Community Development Act Financial assistance, retention. 42 USC 1439. of 1974 is amended by adding at the end thereof a new paragraph to read as follows: “(4) Notwithstanding any other provision of law, with respect to fiscal years beginning after September 30, 1981, the Secretary of Housing and Urban Development may not retain more than 15 per centum of the financial assistance which becomes available under programs described in subsection (a)(1) during any fiscal year. Any Allocation use. such financial assistance which is retained shall be available for subsequent allocation to specific areas and communities, and may only be used for— “(A) unforeseeable housing needs, especially those brought on by natural disasters or special relocation requirements; “(B) support for the needs of the handicapped or for minority enterprise; “(C) providing for assisted housing as a result of the settlement of litigation; “(D) small research and demonstration projects; “(E) lower-income housing needs described in housing assistance plans, including activities carried out under areawide housing opportunity plans; and “(F) innovative housing programs or alternative methods for meeting lower-income housing needs approved by the Secretary, including assistance for infrastructure in connection with the Indian Housing Program.”. (f) (1) The first sentence of section 201(h) of the Housing and Community Development Amendments of 1978 is amended— 12 USC 1715z–1a. (A) by striking out “and” after “the fiscal year 1980,”; (B) by inserting before the period at the end thereof the following: “, and not to exceed $4,000,000 for the fiscal year 1982”; and (C) by striking out the comma immediately following “Act” and inserting in lieu thereof a closed parenthesis. (2) Section 201 of the Housing and Community Development 12 USC 1715Z–1 and note, 1715z–1a. Amendments of 1978 is amended— (A) by redesignating subsections (h) and (i) as subsections (j) and (k), respectively; and (B) by inserting the following new subsection after subsection (g): “(h) The Secretary may not use any of the assistance available under this section during any fiscal year beginning on or after October 1, 1981, to supplement any contract to make rental assistance payments which was made pursuant to section 101 of the 12 USC 1701s, 42 USC 1451. Housing and Urban Development Act of 1965.”. (3) The third sentence of section 236(f)(3) of the National Housing Post, p. 403. Act, as redesignated by section 322(f)(7) of this part, is amended by striking out “September 30, 1981” and inserting in lieu thereof “September 30, 1982”. Sec. 322. tenant rental payments (a) Section 3 of the United States Housing Act of 1937 is amended to read as follows: “Sec. 3. “rental payments; definitions (a) Dwelling units assisted under this Act shall be rented only to families who are lower income families at the time of their initial occupancy of such units. A family shall pay as rent for a dwelling unit assisted under this Act the highest of the following amounts, rounded to the nearest dollar: “(1) 30 per centum of the family’s monthly adjusted income; “(2) 10 per centum of the family’s monthly income; or “(3) if the family is receiving payments for welfare assistance from a public agency and a part of such payments, adjusted in accordance with the family’s actual housing costs, is specifically designated by such agency to meet the family’s housing costs, the portion of such payments which is so designated. “(b) When used in this Act: “(1) The term ‘lower income housing’ means decent, safe, and sanitary dwellings assisted under this Act. The term ‘public housing’ means lower income housing, and all necessary appurtenances thereto, assisted under this Act other than under section 8. When used in reference to public housing, the term ‘lower income housing project’ or ‘project’ means (A) housing developed, acquired, or assisted by a public housing agency under this Act, and (B) the improvement of any such housing. “(2) The term ‘lower income families’ means those families whose incomes do not exceed 80 per centum of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families, except that the Secretary may establish income ceilings higher or lower than 80 per centum of the median for the area on the basis of the Secretary’s findings that such variations are necessary because of prevailing levels of construction costs or unusually high or low family incomes. The term ‘very low-income families’ means lower income families whose incomes do not exceed 50 per centum of the median family income for the area, as determined by the Secretary with adjustments for smaller and larger families. “(3) The term ‘families’ includes families consisting of a single person in the case of (A) a person who is at least sixty-two years of age or is under a disability as defined in section 223 of the Social Security Act or in section 102 of the Developmental Disabilities Services and 42 USC 423. 42 USC 6001. Facilities Construction Amendments of 1970, or is handicapped, (B) a displaced person, (C) the remaining member of a tenant family, and (D) other single persons in circumstances described in regulations of the Secretary. In no event shall more than 15 per centum of the units under the jurisdiction of any public housing agency be occupied by single persons under clause (D). In determining priority for admission to housing under this Act, the Secretary shall give preference to those single persons who are elderly, handicapped, or displaced before those eligible under clause (D). The term ‘elderly families’ means families whose heads (or their spouses), or whose sole members, are persons described in clause (A). A person shall be considered handicapped if such person is determined, pursuant to regulations issued by the Secretary, to have an impairment which is expected to be of long-continued and indefinite duration, substantially impedes such person’s ability to live independently, and is of such a nature that such ability could be improved by more suitable housing conditions. The term ‘displaced person’ means a person displaced by governmental action, or a person whose dwelling has been extensively damaged or destroyed as a result of a disaster declared or otherwise formally recognized pursuant to Federal disaster relief laws. Notwithstanding the preceding provisions of this subsection, the term ‘elderly families’ includes two or more elderly, disabled, or handicapped individuals living together, or one or more such individuals living with one or more persons determined under regulations of the Secretary to be essential to their care or well being. “(4) The term ‘income’ means income from all sources of each member of the household, as determined in accordance with criteria prescribed by the Secretary. “(5) The term ‘adjusted income’ means the income which remains after excluding such amounts or types of income as the Secretary may prescribe. In determining amounts to be excluded from income, the Secretary may, in the Secretary’s discretion, take into account the number of minor children in the household and such other factors as the Secretary may determine are appropriate. “(6) The term ‘public housing agency’ means any State, county, municipality, or other governmental entity or public body (or agency or instrumentality thereof) which is authorized to engage in or assist in the development or operation of lower income housing. “(7) The term ‘State includes the several States, the District of Columbia, the Commonwealth of Puerto Rico, the territories and possessions of the United States, the Trust Territory of the Pacific Islands, and Indian tribes, bands, groups, and Nations, including Alaska Indians, Aleuts, and Eskimos, of the United States. “(8) The term ‘Secretary’ means the Secretary of Housing and Urban Development. “(c) When used in reference to public housing: “(1) The term ‘development’ means any or all undertakings necessary for planning, land acquisition, demolition, construction, or equipment, in connection with a lower income housing project. The term ‘development cost’ comprises the costs incurred by a public housing agency in such undertakings and their necessary financing (including the payment of carrying charges), and in otherwise carry-ing out the development of such project. Construction activity in connection with a lower income housing project may be confined to the reconstruction, remodeling, or repair of existing buildings. “(2) The term ‘operation’ means any or all undertakings appropriate for management, operation, services, maintenance, security (including the cost of security personnel), or financing in connection with a lower income housing project. The term also means the financing of tenant programs and services for families residing in lower income housing projects, particularly where there is maximum feasible participation of the tenants in the development and operation of such tenant programs and services. As used in this paragraph, the term ‘tenant programs and services’ includes the development and maintenance of tenant organizations which participate in the management of lower income housing projects; the training of tenants to manage and operate such projects and the utilization of their services in project management and operation; counseling on household management, housekeeping, budgeting, money management, child care, and similar matters; advice as to resources for job training and placement, education, welfare, health, and other community services; services which are directly related to meeting tenant needs and providing a wholesome living environment; and referral to appropriate agencies in the community when necessary for the provision of such services. To the maximum extent available and appropriate, existing public and private agencies in the community shall be used for the provision of such services. “(3) The term ‘acquisition cost’ means the amount prudently required to be expended by a public housing agency in acquiring property for a lower income housing project.”. (b) Sections 4, 5, 9, and 11 of such Act are amended by striking out “low-income” where it appears in the caption accompanying each such section and by inserting in lieu thereof “low-income”. (c) Sections 2, 4, 5, 6, 9, 11, 12, and 14 of such Act are amended by striking out “low income” and “low-income” wherever they appear and inserting in lieu thereof “lower income”. (d) Section 6(c)(2) of such Act is amended by striking out the phrase “at intervals of two years (or at shorter intervals where the Secretary deems it desirable)” and inserting in lieu thereof “no less frequently than annually”. (e) Section 8 of such Act is amended— (1) by striking out paragraph (3) of subsection (c) and inserting in lieu thereof the following: “(3) The amount of the monthly assistance payment with respect to any dwelling unit shall be the difference between the maximum monthly rent which the contract provides that the owner is to receive for the unit and the rent the family is required to pay under section Ante, p. 400. 3(a) of this Act. Reviews of family income shall be made no less frequently than annually.”; (2) by striking out paragraph (7) of subsection (c) and redesignating paragraph (8) of such subsection as paragraph (7); (3) by striking out paragraphs (1), (2), and (3) of subsection (f) and redesignating paragraphs (4), (6), and (6) of such subsection as paragraphs (1), (2), and (3), respectively; (4) by striking out “The provisions of section 3(1), 5(e), and 6” in subsection (h) and inserting in lieu thereof “Sections 5(e) and 6”; (5) by striking out the comma after the word “Act” in subsection (h); and (6) by striking out “25 per centum of one-twelfth of the annual income of such family” in paragraph (3) of subsection (j) and inserting in lieu thereof “the rent the family is required to pay under section 3(a) of this Act”. Ante, p. 400. (f) Section 236 of the National Housing Act is amended— 12 USC 1715z–1. (1) by striking out “two years” in subsection (e) and inserting in lieu thereof “one year”; (2) by striking out “25 per centum of the tenant’s income” in the second sentence of subsection (f)(1) and inserting in lieu thereof “30 per centum of the tenant’s adjusted income”; (3) by striking out clause (ii) in the third sentence of subsection (f)(1) and inserting in lieu thereof the following: “(ii) to permit the charging of a rental for such dwelling units at such an amount less than 30 per centum of a tenant’s adjusted income as the Secretary determines represents a proportionate decrease for the utility charges to be paid by such tenant, but in no case shall such rental be lower than 25 per centum of a tenant’s adjusted income.” (4) by striking out “25 per centum of their income” in paragraph (2) of subsection (f) and inserting in lieu thereof “30 per centum of their adjusted income”; (5) by striking out “25 per centum of the tenant’s income” in paragraph (2) of subsection (f) and inserting in lieu thereof “the highest of the following amounts, rounded to the nearest dollar: “(A) 30 per centum of the tenant’s monthly adjusted income; “(B) 10 per centum of the tenant’s monthly income; or “(C) if the family is receiving payments for welfare assistance from a public agency and a part of such payments, adjusted in accordance with the family’s actual housing costs, is specifically designated by such agency to meet the family’s housing costs, the portion of such payments which is so designated”; (6) by striking out the third sentence in paragraph (2) of subsection (f); (7) by striking out subparagraph (A) of subsection (f)(3) and redesignating subsection (f)(3)(B) as subsection (f)(3); and (8) by striking out subsection (m) and inserting in lieu thereof the following: “(m) For the purpose of this section the term ‘income’ means income from all sources of each member of the household, as determined in accordance with criteria prescribed by the Secretary. In determining amounts to be excluded from income, the Secretary may, in the Secretary’s discretion, take into account the number of minor children in the household and such other factors as the Secretary may determine are appropriate.”. (g) Section 101 of the Housing and Urban Development Act of 1965 12 USC 1701s, 42 USC 1451. is amended— (1) by striking out paragraph (2) in subsection (c) and inserting in lieu thereof the following: “(2) ‘income’ means income from all sources of each member of the household, as determined in accordance with criteria prescribed by the Secretary. In determining amounts to be excluded from income, the Secretary may, in the Secretary’s discretion, take into account the number of minor children in the household and such other factors as the Secretary may determine are appropriate.”; (2) by striking out the first sentence of subsection (d) and inserting in lieu thereof the following: “The amount of the annual payment with respect to any dwelling unit shall be the lesser of (1) 70 per centum of the fair market rent, or (2) the amount by which the fair market rental for such unit exceeds 30 per centum of the tenant’s adjusted income.”; and (3) by striking out “, except the elderly, at intervals of two years (or at shorter intervals in cases where the Secretary may deem it desirable)” in paragraph (2) of subsection (e), and by inserting in lieu thereof “no less frequently than annually”. (h) Title II of the Housing and Community Development Amendments of 1979 is amended— (1) by striking out subsection (c) in section 202; and (2) by striking out subsection (c) in section 203. (i) (1) In determining the rent to be paid by tenants who are occupying housing assisted under the authorities amended by this section on the effective date of this Act, the Secretary, notwithstanding any other provision of this section, may provide for delayed applicability, or for staged implementation, of the procedures for determining rent required by the provisions of subsections (a) through (h) of this section if the Secretary determines that immediate application of such procedures would be impracticable, would violate the terms of existing leases, or would result in extraordinary hardship for any class of tenants. The Secretary shall provide that the amount of rent paid by any family shall not increase, as a result of the amendments made by this section and as a result of any other provision of Federal law redefining which governmental benefits are required to or may be considered as income, by more than 10 per centum during any 12-month period unless the increase above such 10 per centum is attributed solely to increases in income which are not caused by such amendments or by such redefinitions. The limitation contained in the preceding sentence shall remain in effect and may not be changed or superceded except by another provision of law which amends this subsection. Notwithstanding any other provision of this section, application of the procedures for determining rent contained in this section shall not result in a reduction in the amount of rent paid by any tenant below the amount paid by such tenant immediately preceding the effective date of this Act. (2) Tenants of housing assisted under the provisions of law amended by this section whose occupancy begins after the effective date of this Act shall be subject to immediate rent payment determinations in accordance with the amendments contained in subsections (a) through (h), except that the Secretary may provide for delayed applicability, or for staged implementation, of these requirements for such tenants if the Secretary determines that immediate application of the requirements of this section would be impracticable, or that uniform procedures for assessing rents would significantly decrease administrative costs and burdens. (3) The Secretary’s actions and determinations and the procedures for making determinations pursuant to this subsection shall not be reviewable in any court. The provisions of subsections (a) through (h) shall be implemented and fully applicable to all affected tenants no later than five years following the date of enactment of this Act, except that the Secretary may extend the time for implementation if the Secretary determines that full implementation would result in extraordinary hardship for any class of tenants. Sec. 323. income eligibility The United States Housing Act of 1937 is amended by adding at the end thereof the following: “Sec. 16. “income eligibility for assisted housing (a) Not more than 10 per centum of the dwelling units 42 USC 1437n. which were available for occupancy under public housing annual contributions contracts and section 8 housing assistance payments contracts under this Act before the effective date of the Housing and Community Development Amendments of 1981, and which will be Ante, p. 384. leased on or after such effective date shall be available for leasing by lower income families other than very low-income families. “(b) Not more than 5 per centum of the dwelling units which become available for occupancy under public housing annual contributions contracts and section 8 housing assistance payments contracts under this Act on or after the effective date of the Housing and Community Development Amendments of 1981 shall be available for leasing by lower income families other than very low-income families.”. Sec. 324. cost reduction in assisted housing Section 8 of the United States Housing Act of 1937 is 42 USC 1437f. amended— (1) by inserting after the first sentence of subsection (b)(2) the following: “To increase housing opportunities for very low-income families, the Secretary shall assure that newly constructed housing to be assisted under this section is modest in design.”; (2) by adding at the end of subsection (c)(2) the following: Contract rents, increases, limitation. “(D) Notwithstanding the foregoing, the Secretary shall limit increases in contract rents for newly constructed or substantially rehabilitated projects assisted under this section to the amount of operating cost increases incurred with respect to comparable rental dwelling units of various sizes and types in the same market area which are suitable for occupancy by families assisted under this section. Where no comparable dwelling units exist in the same market area, the Secretary shall have authority to approve such increases in accordance with the best available data regarding operating cost increases in rental dwelling units.”; and (3) by adding at the end thereof the following: “(l) After selection of a proposal involving newly constructed or substantially rehabilitated units for assistance under this section, the Secretary shall limit cost and rent increases, except for adjustments in rent pursuant to section 8(c)(2), to those approved by the Secretary. The Secretary may approve those increases only for unforeseen factors beyond the owner’s control, design changes required by the Secretary or the local government, or changes in financing approved by the Secretary. “(m) For the purpose of achieving the lowest cost in providing units in newly constructed projects assisted under this section, the Secretary shall give a preference in entering into contracts under this section for projects which are to be located on specific tracts of land provided by States or units of local government if the Secretary determines that the tract of land is suitable for such housing, and that affording such preference will be cost effective. “(n) In making assistance available under subsection (e)(5) and subsection (i), the Secretary may provide assistance with respect to residential properties in which some or all of the dwelling units do not contain bathroom or kitchen facilities, if— “(1) the property is located in an area in which there is a significant demand for such units, as determined by the Secretary; and “(2) the unit of general local government in which the property is located and the local public housing agency approve of such units being utilized for such purpose. Waiver The Secretary may waive, in appropriate cases, the limitation and preference described in the second and third sentences of section Ante, p. 400. 3(b)(3) with respect to the assistance made available under this subsection.”. Sec. 325. aid for eligible families Section 8 of the United States Housing Act of 1937 is amended— (1) by adding at the end of subsection (b)(2) the following: “Each contract to make assistance payments for newly constructed or substantially rehabilitated housing assisted under this section entered into after the date of enactment of the Housing and Ante, p. 384. Community Development Amendments of 1981 shall provide that during the term of the contract the owner shall make available for occupancy by families which are eligible for assistance under this section, at the time of their initial occupancy, the number of units for which assistance is committed under the contract.”; and (2) by inserting after “nonhandicapped persons” in the second sentence of subsection (c)(5) the following: “which are not subject to mortgages purchased under section 305 of the National Housing 12 USC 1720. Act”. Sec. 326. miscellaneous housing assistance provisions (a) Section 8(c) of the United States Housing Act of 1937 is amended by adding at the end thereof the following: “(8) Each contract under this section shall provide that the owner will notify tenants at least 90 days prior to the expiration of the contract of any rent increase which may occur as a result of the expiration of such contract.”. (b) (1) Within one year after the date of enactment of this Act, the Secretary of Housing and Urban Development shall conduct a survey to determine the number of projects which are assisted under section 8 of the United States Housing Act of 1937 and are owned by developers or sponsors with five-year annual contributions contracts who plan to withdraw from the section 8 program when their contracts expire and who will increase rents in those projects to levels that the current residents of those projects will not be able to afford. Where such survey indicates that an owner intends to withdraw from the program, the Secretary shall notify affected residents of possible rent increases. (2) Not later than one year after the date of the enactment of this Act, the Secretary shall transmit to the Congress a report indicating alternative methods which may be utilized for recapturing the cost to the Federal Government of front-end investment in those units which are removed from the section 8 program. (c) The Secretary of Housing and Urban Development, after consultation with the Attorney General, shall develop regulations to prevent possible conflicts of interest on the part of Federal, State, and local government officials with regard to participation in projects assisted under section 8 of the United States Housing Act of 1937, and shall make such regulations effective not later than 180 days after the date of enactment of this Act. (d) (1) The Secretary of Housing and Urban Development shall 42 USC 1437f note. permit public housing agencies to retain, out of judgments obtained by them in recovering amounts wrongfully paid as a result of fraud and abuse in the housing assistance program under section 8 of the United States Housing Act of 1937, an amount equal to the greater of 42 USC 1437f. (A) the legal expenses incurred in obtaining such judgments, or (B) 50 per centum of the amount actually collected on the judgments. (2) The Secretary of Housing and Urban Development shall include in the annual report under section 8 of the Department of Hawing and Urban Development Act a summary of cases brought to its attention by public housing authorities for prosecution or civil action, and shall describe the handling of such cases by such authorities and by the Department of Housing and Urban Development and the resolution of such cases in the court system. (e) (1) Section 8(d)(1)(B) of the United States Housing Act of 1937 is amended to read as follows: “(B) (i) the lease between the tenant and the owner shall be for at least one year or the term of such contract, whichever is shorter, and shall contain other terms and conditions specified by the Secretary; and “(ii) the owner shall not terminate the tenancy except for serious or repeated violation of the terms and conditions of the lease, for violation of applicable Federal, State, or local law, or for other good cause;”. (2) The amendment made by paragraph (1) shall apply with respect 42 USC 1437f note. to leases entered into on or after October 1, 1981. Sec. 327. rent supplements (a) Section 101(l) of the Housing and Urban Development Act of 1965 is amended to read as follows: 12 USC 1701s. “(l) Notwithstanding the provisions of subsection (a) and any other provision of law, the Secretary may utilize additional authority under section 5(c) of the United States Housing Act of 1937 made available 94 Stat. 1624. 42 USC 1437c. by appropriation Acts on or after October 1, 1979, to supplement assistance authority available under this section.”. (b) The second sentence of section 101(d) of such Act is repealed. Sec. 328. section 235 amendments (a) Section 235(c)(2)(A) of the National Housing Act is 94 Stat. 1630. 12 USC 1715z. amended by striking out “ceases for a period of 90 continuous days or more making payments required under the mortgage, loan, or advance of credit secured by such a property, or”. (b) Section 235(h)(1) of such Act is amended by adding the following new sentences at the end thereof: “The Secretary shall not enter into new contracts for assistance payments under this section after March 31, 1982, except pursuant to a firm commitment issued on or before March 31, 1982, or pursuant to other commitments issued by the Secretary prior to June 30, 1981, reserving funds for housing to be assisted under this section where such housing is included in a project pursuant to section 119 of the Housing and Community Development Act of 1974. In no event may the Secretary enter into any new 42 USC 5318. contract for assistance payments under this section after September 30, 1983.”. (c) Section 235(q)(14) of such Act is amended by striking out “ceases for a period of 90 continuous days or more making payments on the mortgage, loan, or advance of credit secured by the property, or”. Sec. 329. restriction on use of assisted housing (a) Section 214 of the Housing and Community Development 94 Stat. 1637. 42 USC 1436a. Act of 1980 is amended to read as follows: “Sec. 214. “restriction on use of assisted housing (a) Notwithstanding any other provision of law, the Secretary of Housing and Urban Development may not make financial assistance available for the benefit of any alien unless that alien is a resident of the United States and is— “(1) an alien lawfully admitted for permanent residence as an immigrant as defined by sections 101(a)(15) and 101(a)(20) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15) and 8 U.S.C. 1101(a)(20)), excluding, among others, alien visitors, tourists, diplomats, and students who enter the United States temporarily with no intention of abandoning their residence in a foreign country; “(2) an alien who entered the United States prior to June 30, 1948, or such subsequent date as is enacted by law, has continuously maintained his or her residence in the United States since then, and is not ineligible for citizenship, but who is deemed to be lawfully admitted for permanent residence as a result of an exercise of discretion by the Attorney General pursuant to section 249 of the Immigration and Nationality Act (8 U.S.C. 1259); “(3) an alien who is lawfully present in the United States pursuant to an admission under section 207 of the Immigration 94 Stat. 103. and Nationality Act (8 U.S.C. 1157) or pursuant to the granting of asylum (which has not been terminated) under section 208 of 94 Stat. 105. such Act (8 U.S.C. 1158); “(4) an alien who is lawfully present in the United States as a result of an exercise of discretion by the Attorney General for emergent reasons or reasons deemed strictly in the public interest pursuant to section 212(d)(5) of the Immigration and Nationality 94 Stat. 107. Act (8 U.S.C. 1182(d)(5)); or “(5) an alien who is lawfully present in the United States as a result of the Attorney General’s withholding deportation pursuant to section 243(h) of the Immigration and Nationality Act (8 94 Stat. 107. U.S.C. 1253(h)). “(b) For purposes of this section the term ‘financial assistance’ means financial assistance made available pursuant to the United 42 USC 1437 note. 12 USC 1715z, 1715z–1. States Housing Act of 1937, section 235 or 236 of the National Housing Act, or section 101 of the Housing and Urban Development Act of 1965.”. (b) An alien who is lawfully present in the United States as a result of being granted conditional entry pursuant to section 203(a)(7) of the Immigration and Nationality Act (8 U.S.C. 1153(a)(7)) before April 1, 1980, because of persecution or fear of persecution on account of race, religion, or political opinion or because of being uprooted by catastrophic natural calamity shall be deemed, for purposes of section 214 of the Housing and Community Development Act of 1980, to be an Supra. alien described in section 214(a)(3) of such Act. Sec. 329A. payment for development managers The Secretary of Housing and Urban Development shall 42 USC 1437j–i. develop and implement a revised fee schedule for development managers of lower income housing projects assisted under the United States Housing Act of 1937 so that the percentage limitation applicable 42 USC 1437 note. to fees chargeable in connection with smaller projects is increased to a minimum level which is practicable. Sec. 329B. review of operating subsidy formula The Secretary of Housing and Urban Development shall review the administration of the operating subsidy program under section 9 of the United States Housing Act of 1937, including an 42 USC 1437g. examination of alternative methods for distributing operating subsidies which provide incentives for efficient management, full rent collection, and improved maintenance of projects developed under the United States Housing Act of 1937. Not later than March 1, 1982, Report to Congress. the Secretary of Housing and Urban Development shall transmit a report to the Congress on the results of such review. Sec. 329C. energy efficiency efforts Section 201 of the Housing and Community Development Amendments of 1978 is amended— 12 USC 1715z–1a. (1) in subsection (f)(1), by striking out “and” at the end of subparagraph (B), by striking out the period at the end of subparagraph (C) and inserting in lieu thereof “; and”, and by adding at the end thereof the following: “(D) an amount determined by the Secretary to be necessary to carry out a plan to upgrade the project to meet cost-effective energy efficiency standards prescribed by the Secretary.”; and (2) by inserting after subsection (h) the following: “(i) Notwithstanding any other provision of law, in exercising any authority relating to the approval or disapproval of rentals charged tenants residing in projects which are eligible for assistance under this section, the Secretary— “(1) shall consider whether the mortgagor could control increases in utility costs by securing more favorable utility rates, by undertaking energy conservation measures which are financially feasible and cost effective, or by taking other financially feasible and cost-effective actions to increase energy efficiency or to reduce energy consumption; and “(2) may, in his discretion, adjust the amount of a proposed rental increase where he finds the mortgagor could exercise such control.”. Sec. 329D. recognition of kansas department of economic development The Secretary of Housing and Urban Development shall permit the Kansas Department of Economic Development to participate as a public housing agency for the purposes of programs carried out under the United States Housing Act of 1937 and as a State 42 USC 1437 note. agency for the purpose of section 883.203 of title 24 of the Code of Federal Regulations as in effect June 1, 1981. Sec. 329E. purchase of pha obligations In addition to any authority provided before October 1, 1981, the Secretary of Housing and Urban Development may, on and after October 1, 1981, enter into contracts for periodic payments to the Federal Financing Bank to offset the costs to the Bank of purchasing obligations (as described in the first sentence of section 12 USC 2294. 16(b) of the Federal Financing Bank Act of 1973) issued by local public housing agencies for purposes of financing public housing projects 94 Stat. 1624. 42 USC 1437c. authorized by section 5(c) of the United States Housing Act of 1937. Notwithstanding any other provision of law, such contracts may be entered into only to the extent approved in appropriation Acts, and the aggregate amount which may be obligated over the duration of such contracts may not exceed $400,000,000. There are hereby authorized to be appropriated any amounts necessary to provide for such payments. The authority to enter into contracts under this subsection shall be in lieu of any authority (except for authority provided specifically to the Secretary before October 1, 1981) of the Secretary to enter into contracts for such purposes under section 16(b) of the Federal Financing Bank Act of 1973. Sec. 329F. tenant participation Section 202(b)(1) of the Housing and Community Development 12 USC 1715z–1b. Amendments of 1978 is amended by striking out “owner’s action” and inserting in lieu thereof “owner’s request for rent increase, conversion of residential rental units to any other use (including commercial use or use as a unit in any condominium or cooperative project), partial release of security, or major physical alterations”. Sec. 329G. fire safety Section 14(i)(1) of the United States Housing Act of 1937 is amended by inserting the following before the period at the end of the first sentence thereof: “, especially emergency and special purpose needs which relate to fire safety standards”. Sec. 329H. section 8 assistance for manufactured homes (a) Section 8(j) of the United States Housing Act of 1937 is amended to read as follows: “(j) (1) The Secretary may enter into contracts to make assistance payments under this subsection to assist lower income families by making rental assistance payments on behalf of any such family which utilizes a manufactured home as its principal place of residence. Such payments may be made with respect to the rental of the real property on which there is located a manufactured home which is owned by any such family or with respect to the rental by such family of a manufactured home and the real property on which it is located. In carrying out this subsection, the Secretary may— “(A) enter into annual contributions contracts with public housing agencies pursuant to which such agencies may enter into contracts to make such assistance payments to the owners of such real property, or “(B) enter into such contracts directly with the owners of such real property. “(2) (A) A contract entered into pursuant to this paragraph shall establish the maximum monthly rent (including maintenance and management charges) which the owner is entitled to receive for the space on which a manufactured home is located and with respect to which assistance payments are to be made. The maximum monthly rent shall not exceed by more than 10 per centum the fair market rental established by the Secretary periodically (but not less than annually) with respect to the market area for the rental of real property suitable for occupancy by families assisted under this paragraph. “(B) The amount of any monthly assistance payment with respect to any family which rents real property which is assisted under this paragraph, and on which is located a manufactured home which is owned by such family shall be the difference between the rent the family is required to pay under section 3(a) of this Act and the sum 42 USC 1437a. of— “(i) the monthly payment made by such family to amortize the cost of purchasing the manufactured home; “(ii) the monthly utility payments made by such family, subject to reasonable limitations prescribed by the Secretary; and “(iii) the maximum monthly rent permitted with respect to the real property which is rented by such family for the purpose of locating its manufactured home; except that in no case may such assistance exceed the total amount of such maximum monthly rent. “(3) (A) Contracts entered into pursuant to this paragraph shall Maximum monthly rent. establish the maximum monthly rent permitted with respect to the manufactured home and the real property on which it is located and with respect to which assistance payments are to be made. The maximum monthly rent shall not exceed by more than 10 per centum the fair market rental established by the Secretary periodically (but not less than annually) with respect to the market area for the rental of a manufactured home and the real property on which it is located suitable for occupancy by families assisted under this paragraph, except that the maximum monthly rent may exceed the fair market rental by more than 10 but not more than 20 per centum where the Secretary determines that special circumstances warrant such higher maximum rent. “(B) The amount of any monthly assistance payment with respect to any family which rents a manufactured home and the real property on which it is located and which is assisted under this paragraph shall be the difference between the rent the family is required to pay under section 3(a) of this Act and the sum of— “(i) the monthly utility payments made by such family, subject to reasonable limitations prescribed by the Secretary; and “(ii) the maximum monthly rent permitted with respect to the manufactured home and the real property on which it is located. “(4) The provisions of subsection (c)(2) of this section shall apply to the adjustments of maximum monthly rents under this subsection. “(5) Each contract entered into under this subsection shall be for a Contract terms. term of not less than one month and not more than 180 months, except that in any case in which the manufactured home park is substantially rehabilitated or newly constructed, such term may not be less than 240 months, nor more than the maximum term for a manufactured home loan permitted under section 2(b) of the National Housing Act. Post, p. 414. “(6) The Secretary may carry out this subsection without regard to whether the manufactured home park is existing, substantially rehabilitated, or newly constructed. “(7) In the case of any substantially rehabilitated or newly constructed manufactured home park containing spaces with respect to which assistance is made under this subsection, the principal amount of the mortgage attributable to the rental spaces within the park may not exceed an amount established by the Secretary which is equal to or less than the limitation for manufactured home parks described in Post, p. 416. section 207(c)(3) of the National Housing Act, and the Secretary may increase such limitation in high cost areas in the manner described in such section. “(8) The Secretary may prescribe other terms and conditions which are necessary for the purpose of carrying out the provisions of this subsection and which are consistent with the purposes of this subsection.”. Sec. 329I. homeownership and fire safety studies (a) (1) The Secretary of Housing and Urban Development shall conduct a study of— (A) the extent, if any, to which section 8(c)(7) of the United 42 USC 1437f. States Housing Act of 1937 has been utilized; (B) the results of any such utilization; (C) if such section has not been utilized or utilized only on a very restricted basis, the reasons why it has not been utilized more extensively; and (D) different methods by which such section could be utilized for increasing homeownership opportunities for lower income families. (2) As a result of such study, the Secretary shall, not later than January 1, 1982, transmit to the Congress recommendations regarding the establishment of a demonstration project in which the Secretary would use section 8(c)(7) of such Act for the purpose of increasing homeownership opportunities for lower income families. Such proposal shall include, but not be limited to, provisions for— (A) targeting such project so that existing housing may be preserved to the maximum extent practicable; and (B) recovering assistance in the case of resale of the property or in other appropriate cases. (b) The Secretary shall conduct a study to the extent to which lower income housing projects do not meet applicable fire safety standards and report to the Congress with respect to such study not later than one year after the date of the enactment of this Act. PART 3— PROGRAM AMENDMENTS AND EXTENSIONS Sec. 331. federal housing administration extensions (a) Section 2(a) of the National Housing Act is amended by striking out “October 1, 1981” in the first sentence and inserting in lieu thereof “October 1, 1982”. (b) Section 217 of such Act is amended by striking out “September 30, 1981” and inserting in lieu thereof “September 30, 1982”. (c) Section 221(f) of such Act is amended by striking out “September 30, 1981” in the fifth sentence and inserting in lieu thereof “September 30, 1982”. (d) (1) Section 235(m) of such Act is amended by striking out “September 30, 1981” and inserting in lieu thereof “September 30, 1982”. (2) Section 235(q)(1) of such Act is amended by striking out “June 1, 94 Stat. 1631. 12 USC 1715z. 1981,” in the fourth sentence thereof and inserting in lieu thereof “September 30, 1982,”. (e) Section 236(n) of such Act is amended by striking out “September 94 Stat. 1638. 12 USC 1715z–1. 30, 1981” and inserting in lieu thereof “September 30, 1982”. (f) Section 244(d) of such Act is amended— 12 USC 1715z–9. (1) by striking out “September 30, 1981” in the first sentence and inserting in lieu thereof “September 30, 1982”; and (2) by striking out “October 1, 1981” in the second sentence and inserting in lieu thereof “October 1, 1982”. (g) Section 245(a) of such Act is amended by striking out “September 12 USC 1715z–10. 30, 1981” and inserting in lieu thereof “September 30, 1982”. (h) (1) Section 809(f) of such Act is amended by striking out “September 12 USC 1748h–1. 30, 1981” in the second sentence and inserting in lieu thereof “September 30, 1982”. (2) Section 810(k) of such Act is amended by striking out “September 94 Stat. 1639. 12 USC 1748h–2. 30, 1981” in the second sentence and inserting in lieu thereof “September 30, 1982”. (i) Section 1002(a) of such Act is amended by striking out “September 12 USC 1749bb. 30, 1981” in the second sentence and inserting in lieu thereof “September 30, 1982”. (j) Section 1101(a) of such Act is amended by striking out “September 12 USC 1749aaa. 30, 1981” in the second sentence and inserting in lieu thereof “September 30, 1982”. Sec. 332. flexible interest rates Section 3(a)(1) of Public Law 90–301 is amended by striking 94 Stat. 1639. 12 USC 1709–1. out “October 1, 1981” and inserting in lieu thereof “October 1, 1982”. Sec. 333. government national mortgage association (a) (1) Section 305(c) of the Federal National Mortgage Association Charter Act is amended— 12 USC 1720. (A) by striking out “and” after “1978,”; and (B) by inserting the following before the period at the end thereof: “, and by $1,100,000,000 on October 1, 1981”. (2) Section 305 of such Act is amended by adding the following new subsection at the end thereof: “(k) During fiscal year 1982, the Association may not enter into Mortgage purchases. commitments to purchase under this section mortgages with an aggregate principal amount in excess of $1,973,000,000, except that the Association may not enter into commitments to purchase mortgages secured by projects which do not contain units assisted under section 8 of the United States Housing Act of 1937 with an aggregate 42 USC 1437f. principal amount in excess of $580,000,000.”. (3) Section 306(g) of such Act is amended— 12 USC 1721. (A) by inserting “(1)” after “(g)”; (B) by striking out “(1)” and “(2)” in the first sentence and inserting in lieu thereof “(i)” and “(ii)”, respectively; and (C) by adding the following new paragraph at the end thereof: “(2) During fiscal year 1982, the Association may not enter into commitments to issue guarantees under this subsection in an aggregate amount in excess of $69,542,000,000.”. (b) (1) In entering into commitments to purchase below-market, 12 USC 1720 note. tandem plan mortgages during the period beginning on the date of the enactment of this Act and ending October 1, 1982, under section 305 of the Federal National Mortgage Association Charter Act, the Government National Mortgage Association may enter into such commitments only with respect to multifamily projects for which firm commitments for mortgage insurance under title II of the 12 USC 1707. National Housing Act have been issued. (2) The Secretary of Housing and Urban Development shall continue to process applications for mortgage insurance for multifamily projects under title 11 of the National Housing Act for a period of at least 90 days beginning on October 1, 1981. Sec. 334. general insurance fund Section 519(f) of the National Housing Act is amended by inserting the following before the period at the end thereof: “, which amount shall be increased by $126,673,000 on October 1, 1981”. Sec. 335. limitation on insurance authority Title V of the National Housing Act is amended by adding the following new section at the end thereof: “Sec. 531. “limitation on insurance authority During fiscal year 1982, the Secretary may not enter into commitments to insure under this Act loans and mortgages with an aggregate principal amount in excess of $41,000,000,000.”. Sec. 336. housing for the elderly Section 202(a)(4)(C) of the Housing Act of 1959 is amended by inserting the following before the period at the end of the second sentence: “, and not more than $850,848,000 may be approved in appropriation Acts for such loans with respect to fiscal year 1982”. Sec. 337. research authorizations The second sentence of section 501 of the Housing and 94 Stat. 1639. 12 USC 1701z–1. Urban Development Act of 1970 is amended 17 striking out “and not to exceed $51,000,000 for the fiscal year 1981” and inserting in lieu thereof “not to exceed $51,000,000 for the fiscal year 1981, and not to exceed $35,000,000 for the fiscal year 1982”. Sec. 338. property improvement and manufactured home loans (a) Section 2(b) of the National Housing Act is amended to read as follows: “(b) (1) No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it if the amount of such loan, advance of credit, or purchase exceeds— “(A) $17,500 ($20,000 where financing the installation of a solar energy system is involved) if made for the purpose of financing alterations, repairs and improvements upon or in connection with existing single-family structures or manufactured homes; “(B) $43,750 or an average amount of $8,750 per family unit ($50,000 and $10,000, respectively, where financing the installation of a solar energy system is involved) if made for the purpose of financing the alteration, repair, improvement, or conversion of an existing structure used or to be used as an apartment house or a dwelling for two or more families; “(C) $22,500 ($35,000 in the case of a manufactured home composed of two or more modules) if made for the purpose of financing the purchase of a manufactured home; “(D) $35,000 ($47,500 in the case of a manufactured home composed of two or more modules) if made for the purpose of financing the purchase of a manufactured home and a suitably developed lot on which to place the home; “(E) such an amount as may be necessary, but not exceeding $12,500, if made for the purpose of financing the purchase, by an owner of a manufactured home which is the principal residence of that owner, of a suitably developed lot on which to place that manufactured home, and if the owner certifies that he or she will place the manufactured home on the lot acquired with such loan within six months after the date of such loan; “(F) $15,000 per family unit if made for the purpose of financing the preservation of an historic structure; and “(G) such principal amount as the Secretary may prescribe if made for the purpose of financing fire safety equipment for a nursing home, extended health care facility, intermediate health care facility, or other comparable health care facility. “(2) Because of prevailing higher costs, the Secretary may, by regulation, in Alaska, Guam, or Hawaii, increase any dollar amount limitation on manufactured homes or manufactured home lot loans contained in this subsection by not to exceed 40 per centum. In other areas where needed to meet higher costs of land acquisition, site development, and construction of a permanent foundation in connection with the purchase of a manufactured home or lot, the Secretary may, by regulation, increase any dollar amount limitation otherwise applicable by an additional $7,500. “(3) No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it if the term to maturity of such loan, advance of credit or purchase exceeds— “(A) fifteen years and thirty-two days if made for the purpose of financing alterations, repairs, and improvements upon or in connection with an existing single-family structure or manufactured home; “(B) fifteen years and thirty-two days if made for the purpose of financing the alteration, repair, improvement or conversion of an existing structure used or to be used as an apartment house or a dwelling for two or more families; “(C) twenty years and thirty-two days (twenty-three years and thirty-two days in the case of a manufactured home composed of two or more modules) if made for the purpose of financing the purchase of a manufactured home; “(D) twenty years and thirty-two days (twenty-five years and thirty-two days in the case of a manufactured home composed of two or more modules) if made for the purpose of financing the purchase of a manufactured home and a suitably developed lot on which to place the home; “(E) fifteen years and thirty-two days if made for the purpose of financing the purchase, by the owner of a manufactured home which is the principal residence of that owner, of a suitably developed lot on which to place that manufactured home; “(F) fifteen years and thirty-two days if made for the purpose of financing the preservation of an historic structure; “(G) such term to maturity as the Secretary may prescribe if made for the purpose of financing the construction of a new structure for use in whole or in part for agricultural purposes; and “(H) such term to maturity as the Secretary may prescribe if made for the purpose of financing fire safety equipment for a nursing home, extended health care facility, intermediate health care facility, or other comparable health care facility. “(4) For the purpose of this subsection— “(A) the term ‘developed lot’ includes an interest in a condominium project (including any interest in the common areas) or a share in a cooperative association; “(B) a loan to finance the purchase of a manufactured home or a manufactured home and lot may also finance the purchase of a garage, patio, carport, or other comparable appurtenance; and “(C) a loan to finance the purchase of a manufactured home or a manufactured home and lot shall be secured by a first lien upon such home or home and lot, its furnishings, equipment, accessories, and appurtenances. “(5) No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it unless the obligation bears such interest, has such maturity, and contains such other terms, conditions, and restrictions as the Secretary shall prescribe, in order to make credit available for the purpose of this title. Any such obligation with respect to which insurance is granted under this section shall bear interest and insurance premium charges not exceeding (A) an amount, with respect to so much of the net proceeds thereof as does not exceed $2,500, equivalent to $5.50 discount per $100 of original face amount of a one-year note payable in equal monthly installments, plus (B) an amount, with respect to any portion of the net proceeds thereof in excess of $2,500, equivalent to $4.50 discount per $100 of original face amount of such note. The amounts referred to in clauses (A) and (B) of the preceding sentence, when correctly based on tables of calculations issued by the Secretary or adjusted to eliminate minor errors in computation in accordance with requirements of the Secretary, shall be deemed to comply with such sentence. “(6) (A) Any obligation with respect to which insurance is granted under this section may be refinanced and extended in accordance with such terms and conditions as the Secretary may prescribe, but in no event for an additional amount or term in excess of any applicable maximum provided for in this subsection. “(B) The owner of a manufactured home lot purchased without assistance under this section but otherwise meeting the requirements of this section may refinance such lot under this section in connection with the purchase of a manufactured home if the borrower certifies that the home and lot is or will be his or her principal residence within six months after the date of the loan.”. (b) Section 207(f)(3) of the National Housing Act is amended by striking out “$8,000” and inserting in lieu thereof “$9,000”. Sec. 339. mortgage insurance for condominiums (a) The first sentence of section 234(b) of the National 12 USC 1715y. Housing Act is amended by inserting “, including a project in which the dwelling units are attached, semi-attached, or detached,” after “multifamily project”. Sec. 339A. housing counseling Section 106(a)(3) of the Housing and Urban Development Act of 1968 is amended by inserting the following before the period at 12 USC 1701x. the end of the first sentence: “; except that for the fiscal year 1982, there are authorized to be appropriated not to exceed $4,000,000 for such purposes”. Sec. 339B. technical amendments (a) The last sentence of section 207(c)(3), section 213(p), the last proviso in section 220(d)(3)(B)(iii), section 221(k), the proviso in section 231(c)(2), and section 234(j) of the National Housing Act are 12 USC 1713, 1715e, 1715k, 1715l, 1715v, 1715y. amended— (1) by inserting “therein” immediately after “installation” wherever it appears; and (2) by striking out “therein” before the punctuation at the end thereof. (b) Section 223(f) of such Act is amended— 94 Stat. 1650. 12 USC 1715n. (1) by inserting “and” immediately after the semicolon at the end of paragraph (2)(A); and (2) by redesignating paragraph (5) as paragraph (4). (c) For purposes of paragraphs (1) and (4) of section 308(c) of the Definitions. 94 Stat. 1640. 12 USC 1701 et seq., 5401 et seq. Housing and Community Development Act of 1980, the term “mobile home” and the term “manufactured home” shall be deemed to include the term “mobile homes” and the term “manufactured homes”, respectively. (d) (1) The material preceding the proviso in clause (2) of the first sentence of section 234(c) of the National Housing Act is amended to 12 USC 1715y. read as follows: “(2) the project is or has been covered by a mortgage insured under any section (except section 213(a) (1) and (2)) of this Act 12 USC 1715e. or the project was approved for a guarantee, insurance, or a direct loan under chapter 37 of title 38, United States Code, notwithstanding 38 USC 1801 et seq. any requirements in any such section that the project be constructed or rehabilitated for the purpose of providing rental housing;”. (2) Section 318 of the Housing and Community Development Act of Repeal. 94 Stat. 1646. 1980 is repealed. Sec. 339C. lower cost technology The Secretary of Housing and Urban Development is 12 USC 1701z–14. authorized to develop and implement a demonstration program utilizing lower cost building technology for projects located on inner-city vacant land. Sec. 339D. reduction of 1981 authority (a) Notwithstanding any other provision of law, the authorizations for appropriations for programs and activities administered by the Secretary for Housing and Urban Development in fiscal year 1981 are reduced by $5,359,000,000. (b) This section takes effect upon the date of enactment of this Act. Effective date. Sec. 339E. national institute of building sciences (a) Section 809(h) of the Housing and Community Development Act of 1974 is amended by striking out “through 1982 12 USC 1701j–2. (with” and inserting in lieu thereof “through 1984 (with not more than $500,000 to be appropriated for each of the fiscal years 1982, 1983, and 1984 and with”. (b) Section 809(c)(4) of such Act is amended by inserting the following before the period at the end thereof: “; except that., notwithstanding any such rules and procedures as may be adopted by the Institute, the President of the United States, by and with the advice and consent of the Senate, shall appoint, as representative of the public interest, two of the members of the Board of Directors selected each year for terms commencing in that year”. Sec. 339F. new communities Section 717(b) of the National Urban Policy and New 42 USC 4518. Community Development Act of 1970 is amended by adding the following new sentence at the end thereof: “With respect to fiscal year 1982, the Secretary may not issue obligations under this section in an aggregate amount in excess of $33,250,000.”. Sec. 339G. purchaser-broker arrangement Title V of the National Housing Act is amended by adding the following new section at the end thereof: “Sec. 532. “purchaser-broker arrangement In carrying out the provisions of title II of this Act with respect to insuring mortgages secured by a one- to four-family residence, the Secretary may not exclude from the principal amount which may be insured under such title any sum solely on the basis that such sum is to be paid by the purchaser to a broker who has been the purchaser’s agent in the purchase of the residence, but the principal amount of the mortgage, when such sum is added, shall not exceed the limitation as to maximum mortgage amount provided in title II.”. Sec. 339H. mortgage insurance for hospitals Section 242(d)(5) of the National Housing Act is amended by adding at the end thereof the following: “This paragraph shall not limit the authority of the Secretary to approve a mortgage increase on any mortgage eligible for insurance under this paragraph at any time prior to final endorsement of the loan for insurance; except that such mortgage increase may not be approved for the cost of constructing any improvements not included in the original plans and specifications approved by the Department of Health and Human Services unless approved by the Secretary of Housing and Urban Development and by the Secretary of Health and Human Services.”. PART 4— FLOOD, CRIME, AND RIOT INSURANCE Sec. 341. flood insurance (a) Section 1376(c) of the National Flood Insurance Act of 94 Stat. 1639. 42 USC 4127. 1968 is amended— (1) by striking out “and” after “1980,”; and (2) by inserting the following before the period at the end thereof “, and not to exceed $42,600,000 for the fiscal year 1982”. (b) (1) Section 1319 of the National Flood Insurance Act of 1968 is amended by striking out “September 30, 1981” and inserting in lieu thereof “September 30, 1982”. (2) Section 1336(a) of such Act is amended by striking out “September 42 USC 4056. 30, 1981” and inserting in lieu thereof “September 30, 1982”. (c) (1) Section 1310(a) of such Act is amended by inserting “as 42 USC 4017. described in subsection (f)” after “which shall be available”. (2) Section 1310 of such Act is amended by adding the following new subsection at the end thereof: “(f) The fund shall be available, with respect to any fiscal year beginning on or after October 1, 1981, only to the extent approved in appropriation Acts; except that the fund shall be available for the purpose described in subsection (d)(1) without such approval.”. (d) (1) Chapter I of such Act is amended by adding the following new section at the end thereof: “Sec. 1321. “undeveloped coastal barriers (a) No new flood insurance coverage shall be provided 42 USC 4028. under this title on or after October 1, 1983, for any new construction or substantial improvements of structures located on undeveloped coastal barriers which shall be designated by the Secretary of the Interior. “(b) For purposes of this section— “(1) the term ‘coastal barrier’ means— “Coastal barrier.” “(A) a depositional geologic feature (such as a bay barrier, tombolo, barrier spit, or barrier island) which— “(i) consists of unconsolidated sedimentary materials, “(ii) is subject to wave, tidal, and wind energies, and “(iii) protects landward aquatic habitats from direct wave attack; and “(B) all associated aquatic habitats including the adjacent wetlands, marshes, estuaries, inlets, and nearshore waters; “(2) a coastal barrier or any portion thereof shall be treated as an undeveloped coastal barrier for purposes of subsection (a) only if there are few manmade structures on the barrier or portion thereof and these structures and man’s activities on the barrier do not significantly impede geomorphic and ecological processes; and “(3) a coastal barrier which is included within the boundaries of an area established under Federal, State, or local law, or held by a qualified organization as defined in section 170(h)(3) of the Internal Revenue Code of 1954, primarily for wildlife refuge, 26 USC 170. sanctuary, recreational, or natural resource conservation purposes shall not be designated as an undeveloped coastal barrier for purposes of subsection (a). “(c) A federally insured financial institution may make loans secured by structures which are not eligible for flood insurance under this title by reason of subsection (a).”. (2) The Secretary of the Interior shall conduct a study for the Study. 42 USC 4028 note. Report to Congress. purpose of designating the undeveloped coastal barriers which will be affected by the amendment made by paragraph (1). Not later than one year after the date of enactment of this Act, the Secretary shall transmit to the Congress a report of the findings and conclusions of such study together with a proposed designation of the undeveloped coastal barriers and any recommendation regarding the definition of the term “coastal barrier” as enacted by such amendment. (e) Section 1345 of such Act is amended by adding at the end thereof 42 USC 4081. the following: “(c) The Director of the Federal Emergency Management Agency shall hold any agent or broker selling or undertaking to sell flood insurance under this title harmless from any judgment for damages against such agent or broker as a result of any court action by a policyholder or applicant arising out of an error or omission on the part of the Federal Emergency Management Agency, and shall provide any such agent or broker with indemnification, including court costs and reasonable attorney fees, arising out of and caused by an error or omission on the part of the Federal Emergency Management Agency and its contractors. The Director of the Federal Emergency Management Agency may not hold harmless or indemnify an agent or broker for his or her error or omission.”. Sec. 342. crime and riot insurance (a) Section 1201(b) of the National Housing Act is amended— (1) by striking out “September 30, 1981” in paragraph (1) and inserting in lieu thereof “September 30, 1982”; and (2) by striking out “September 30, 1984” in paragraph (1)(A) and inserting in lieu thereof “September 30, 1985”. (b) Section 1211(b) of the National Housing Act is amended— (1) by inserting “and” at the end of paragraph (9); (2) by striking out “; and” at the end of paragraph (10) and inserting in lieu thereof a period; and (3) by striking out paragraph (11). PART 5— RURAL HOUSING Sec. 351. authorizations (a) Section 513 of the Housing Act of 1949 is amended— (1) by striking out “not to exceed $3,797,600,000 with respect to the fiscal year ending September 30, 1981” in subsection (a) and inserting in lieu thereof “not to exceed $3,700,600,000 with respect to the fiscal year ending September 30, 1982”; (2) by striking out “not less than $3,120,000,000” in subsection (a)(1) and inserting in lieu thereof “not less than $3,170,000,000”; (3) by striking out “not more than $100,000,000” in subsection (a)(4) and inserting in lieu thereof “none”; (4) by striking out subsection (b)(2) and inserting in lieu thereof the following: “(2) not to exceed $50,000,000 for loans and grants pursuant to 42 USC 1474. section 504 for the fiscal year ending September 30, 1982, of which not more than $25,000,000 shall be available for grants;”; (5) by striking out subsection (b)(3) and inserting in lieu thereof the following: “(3) not to exceed $25,000,000 for financial assistance pursuant 42 USC 1486. to section 516 for the fiscal year ending September 30, 1982;”; (6) by striking out “September 30, 1981” in subsection (b)(4) and inserting in lieu thereof “September 30, 1982”; and (7) by striking out “and” at the end of subsection (b)(4), by striking out the period at the end of subsection (b)(5) and inserting in lieu thereof “; and”, and by adding at the end thereof the following: “(6) not to exceed $2,000,000 for the purposes of section 509(c) for the fiscal year ending September 30, 1982.”. (b) Section 515(b)(5) of such Act is amended by striking out “September 30, 1981” and inserting in lieu thereof “September 30, 1982”. (c) Section 517(a)(1) of such Act is amended by striking out “September 94 Stat. 1668. 42 USC 1487. 30, 1981” and inserting in lieu thereof “September 30, 1982”. (d) Section 521(a)(2)(D) of such Act is amended— 94 Stat. 1668. 42 USC 1490a. (1) by striking “$493,000,000” and inserting in lieu thereof “$398,000,000”; and (2) by striking out “1981, except that” and all that follows through the period at the end thereof and inserting in lieu thereof “1982.”. (e) Section 523 of such Act is amended— 94 Stat. 1668. 42 USC 1490c. (1) by striking out “September 30, 1981” each place it appears in subsection (f) and inserting in lieu thereof “September 30, 1982”; (2) by striking out “not to exceed $2,500,000 for fiscal year 1981” in the first sentence of subsection (g) and inserting in lieu thereof “not to exceed $3,000,000 for fiscal year 1982”; (3) by inserting the following after “shall be available” in the second sentence of subsection (g): “, to the extent approved in appropriation Acts,”; and (4) by inserting the following before the period at the end of the second sentence of subsection (g): “; except that not more than $5,000,000 may be made available during fiscal year 1982”. Sec. 352. interest subsidy program Section 521(a)(1)(B) of the Housing Act of 1949 is amended 94 Stat. 1669. 42 USC 1490a. by striking out “shall” and inserting in lieu thereof “may”. Sec. 353. reports The Secretary of Agriculture shall transmit a report to Transmittal to Congress. the Congress not later than March 1, 1982, setting forth— (1) various options for presenting the budget of the Farmers Home Administration and alternatives to the use of Federal Financing Bank financing for rural housing programs; (2) workable definitions of “low income” which will target Farmers Home Administration housing assistance programs to a population substantially equivalent to the population served by the Department of Housing and Urban Development’s assisted housing programs; (3) the effect of a requirement that 30 per centum of assistance provided by the Farmers Home Administration be provided to families with incomes at 50 per centum of area median income and recommendations for contribution requirements which will achieve equity with the contribution requirements of the Department of Housing and Urban Development’s assisted housing programs; (4) recommendations for ensuring that subsidy levels for assisted families are minimized and that assisted families with similar circumstances in different regions of the country are treated equally; and (5) the Farmers Home Administration’s efforts to minimize the cost of housing subsidized under its programs and the Farmers Home Administration’s use of existing lower cost housing technology. PART 6— MULTIFAMILY MORTGAGE FORECLOSURE Sec. 361. short title This part may be cited as the “Multifamily Mortgage Foreclosure Act of 1981”. Sec. 362. findings and purpose (a) The Congress finds that— (1) disparate State laws under which the Secretary of Housing and Urban Development forecloses real estate mortgages which the Secretary holds pursuant to title II of the National Housing 12 USC 1707. 42 USC 1452b. Act or section 312 of the Housing Act of 1964 covering multiunit residential and nonresidential properties burden the programs administered by the Secretary pursuant to these authorities, and cause detriment to the residents of the affected projects and the community generally; (2) long periods to complete the foreclosure of these mortgages under certain State laws lead to deterioration in the condition of the properties involved; necessitate substantial Federal management and holding expenditures; increase the risk of vandalism, fire loss, depreciation, damage, and waste with respect to the properties; and adversely affect the residents of the projects and the neighborhoods in which the properties are located; (3) these conditions seriously impair the Secretary’s ability to protect the Federal financial interest in the affected properties and frustrate attainment of the objectives of the underlying Federal program authorities, as well as the national housing goal of “a decent home and a suitable living environment for every American family”; (4) application of State redemption periods to these mortgages following their foreclosure would impair the salability of the properties involved and discourage their rehabilitation and improvement, thereby compounding the problems referred to in clause (3); (5) the availability of a uniform and more expeditious procedure for the foreclosure of these mortgages by the Secretary and continuation of the practice of not applying postsale redemption periods to such mortgages will tend to ameliorate these conditions; and (6) providing the Secretary with a nonjudicial foreclosure procedure will reduce unnecessary litigation by removing many foreclosures from the courts where they contribute to overcrowded calendars. (b) The purpose of this part is to create a uniform Federal foreclosure remedy for multiunit residential and nonresidential mortgages held by the Secretary of Housing and Urban Development pursuant to title II of the National Housing Act or section 312 of the Housing Act of 1964. Sec. 363. definitions As used in this part— (1) “mortgage” means a deed of trust, mortgage, deed to secure debt, security agreement, or any other form of instrument under which any interest in property, real, personal or mixed, or any interest in property including leaseholds, life estates, reversionary interests, and any other estates under applicable State law, is conveyed in trust, mortgaged, encumbered, pledged, or otherwise rendered subject to a lien, for the purpose of securing the payment of money or the performance of an obligation; (2) “multifamily mortgage” means a mortgage held by the Secretary pursuant to title II of the National Housing Act or section 312 of the Housing Act of 1964 covering any property, 12 USC 1707. 12 USC 1452b. except a property on which there is located a one- to four-family residence; (3) “mortgage agreement” means the note or debt instrument and the mortgage instrument, deed of trust instrument, trust deed, or instrument or instruments creating the mortgage, including any instrument incorporated by reference therein (including any applicable regulatory agreement), and any instrument or agreement amending or modifying any of the foregoing; (4) “mortgagor” means the obligor, grantor, or trustor named in the mortgage agreement and, unless the context otherwise indicates, includes the current owner of record of the security property whether or not personally liable on the mortgage debt; (5) “person” includes any individual, group of individuals, association, partnership, corporation, or organization; (6) “record” and “recorded” include “register” and “registered” in the instance of registered land; (7) “security property” means the property, real, personal or mixed, or an interest in property, including leaseholds, life estates, reversionary interests, and any other estates under applicable State law, together with fixtures and other interests subject to the lien of the mortgage under applicable State law; (8) “State” means the several States, the District of Columbia, the Commonwealth of Puerto Rico, the territories and possessions of the United States, and the Trust Territory of the Pacific Islands, and Indian tribes as defined by the Secretary; (9) “county” means county as defined in section 2 of title I, United States Code; and 1 USC 2. (10) “Secretary” means the Secretary of Housing and Urban Development. Sec. 364. applicability Multifamily mortgages held by the Secretary encumbering 12 USC 3703. real estate located in any State may be foreclosed by the Secretary in accordance with this part, or pursuant to other foreclosure procedures available, at the option of the Secretary. Sec. 365. designation of foreclosure commissioner A foreclosure commissioner or commissioners designated 12 USC 3704. pursuant to this part shall have a nonjudicial power of sale as provided in this part. Where the Secretary is the holder of a multifamily mortgage, the Secretary may designate a foreclosure commissioner and, with or without cause, may designate a substitute foreclosure commissioner to replace a previously designated foreclosure commissioner, by executing a duly acknowledged, written designation stating the name and business or residential address of the commissioner or substitute commissioner. The designation shall be effective upon execution. Except as provided in section 368(b), a copy of the designation shall be mailed with each copy of the notice of default and foreclosure sale served by mail in accordance with section 369(1). The foreclosure commissioner, if a natural person, shall be a resident of the State in which the security property is located and, if not a natural person, the foreclosure commissioner must be duly authorized to transact business under the laws of the State in which the security property is located. The foreclosure commissioner shall be a person who is responsible, financially sound and competent to conduct the foreclosure. More than one foreclosure commissioner may be designated. If a natural person is designated as foreclosure commissioner or substitute foreclosure commissioner, such person shall be designated by name, except that where such person is designated in his or her capacity as an official or employee of the government of the State or subdivision thereof in which the security property is located, such person may be designated by his or her unique title or position instead of by name. The Secretary shall be a guarantor of payment of any judgment against the foreclosure commissioner for damages based upon the commissioner’s failure properly to perform the commissioner’s duties. As between the Secretary and the mortgagor, the Secretary shall bear the risk of any financial default by the foreclosure commissioner. In the event that the Secretary makes any payment pursuant to the preceding two sentences, the Secretary shall be fully subrogated to the rights satisfied by such payment. Sec. 366. prerequisites to foreclosure Foreclosure by the Secretary under this part of a multifamily mortgage may be commenced, as provided in section 368, upon the breach of a covenant or condition in the mortgage agreement for which foreclosure is authorized under the mortgage, except that no such foreclosure may be commenced unless any previously pending proceeding, judicial or nonjudicial, separately instituted by the Secretary to foreclose the mortgage other than under this part has been withdrawn, dismissed, or otherwise terminated. No such separately instituted foreclosure proceeding on the mortgage shall be instituted by the Secretary during the pendency of foreclosure pursuant to this part. Nothing in this part shall preclude the Secretary from enforcing any right, other than foreclosure, under applicable State law, including any right to obtain a monetary judgment. Nothing in this part shall preclude the Secretary from foreclosing under this part where the Secretary has obtained or is seeking any other remedy available pursuant to Federal or State law or under the mortgage agreement, including, but not limited to, the appointment of a receiver, mortgagee-in-possession status or relief under an assignment of rents. Sec. 367. notice of default and foreclosure sale (a) The notice of default and foreclosure sale to be served in accordance with this part shall be subscribed with the name and address of the foreclosure commissioner and the date on which subscribed, and shall set forth the following information: (1) the names of the Secretary, the original mortgagee and the original mortgagor; (2) the street address or a description of the location of the security property, and a description of the security property, or so much thereof as is to be offered for sale, sufficient to identify the property to be sold; (3) the date of the mortgage, the office in which the mortgage is recorded, and the liber and folio or other description of the location of recordation of the mortgage; (4) the failure to make payment, including the due date of the earliest installment payment remaining wholly unpaid as of the date the notice is subscribed, or the description of other default or defaults upon which foreclosure is based, and the acceleration of the secured indebtedness; (5) the date, time, and place of the foreclosure sale; (6) a statement that the foreclosure is being conducted pursuant to this part; (7) the types of costs, if any, to be paid by the purchaser upon transfer of title; and (8) the amount and method of deposit to be required at the foreclosure sale (except that no deposit shall be required of the Secretary), the time and method of payment of the balance of the foreclosure purchase price and other appropriate terms of sale. (b) (1) Except as provided in paragraph (2)(A), the Secretary may require, as a condition and term of sale, that the purchaser at a foreclosure sale under this part agree to continue to operate the security property in accordance with the terms, as appropriate, of the loan program under section 312 of the Housing Act of 1964, the 42 USC 1452b. program under which insurance under title II of the National Housing Act was originally provided with respect to such property, or 12 USC 1707. any applicable regulatory or other agreement in effect with respect to such property immediately prior to the time of foreclosure sale. (2) (A) In any case where the majority of the residential units in a property subject to such a sale are occupied by residential tenants at the time of the sale, the Secretary shall require, as a condition and term of sale, any purchaser (other than the Secretary) to operate the property in accordance with such terms, as appropriate, of the programs referred to in paragraph (1). (B) In any case where the Secretary is the purchaser of a multifamily project, the Secretary shall manage and dispose of such project in accordance with the provisions of section 203 of the Housing and Community Development Amendments of 1978. 12 USC 1715z–11. Sec. 368. commencement of foreclosure (a) If the Secretary as holder of a multifamily mortgage 12 USC 3707. determines that the prerequisites to foreclosure set forth in section 366 are satisfied, the Secretary may request the foreclosure commissioner to commence foreclosure of the mortgage. Upon such request, the foreclosure commissioner shall commence foreclosure of the mortgage, by commencing service of a notice of default and foreclosure sale in accordance with section 369. (b) Subsequent to commencement of a foreclosure under this part, the Secretary may designate a substitute foreclosure commissioner at any time up to forty-eight hours prior to the time of foreclosure sale, and the foreclosure shall continue without prejudice, unless the substitute commissioner, in his or her sole discretion, finds that continuation of the foreclosure sale will unfairly affect the interests of the mortgagor. In the event that the substitute commissioner makes such a finding, the substitute commissioner shall cancel the foreclosure sale, or adjourn such sale in the manner provided in section 369B(c). Upon designation of a substitute foreclosure commissioner, a copy of the written notice of such designation referred to in section 365 shall be served upon the persons set forth in section 369(1) of this part (1) by mail as provided in such section 369 (except that the minimum time periods between mailing and the date of foreclosure sale prescribed in such section shall not apply to notice by mail pursuant to this subsection), or (2) in any other manner, which in the substitute commissioner’s sole discretion, is conducive to achieving timely notice of such substitution. In the event a substitute foreclosure commissioner is designated less than forty-eight hours prior to the time of the foreclosure sale, the pending foreclosure shall be terminated and a new foreclosure shall be commenced by commencing service of a new notice of default and foreclosure sale. Sec. 369. service of notice of default and foreclosure sale The foreclosure commissioner shall serve the notice of default and foreclosure sale provided for in section 367 upon the following persons and in the following manner, and no additional notice shall be required to be served notwithstanding any notice requirements of any State or local law— (1) Notice by mail.— The notice of default and foreclosure sale, together with the designation required by section 365, shall be sent by certified or registered mail, postage prepaid and return receipt requested, to the following persons: (A) the current security property owner of record, as the record exists forty-five days prior to the date originally set for foreclosure sale, whether or not the notice describes a sale adjourned as provided in this part; (B) the original mortgagor and all subsequent mortgagors of record or other persons who appear of record or in the mortgage agreement to be liable for part or all of the mortgage debt, as the record exists forty-five days prior to the date originally set for foreclosure sale, whether or not the notice describes a sale adjourned as provided in this part, except any such mortgagors or persons who have been released; and (C) all persons holding liens of record upon the security property, as the record exists forty-five days prior to the date originally set for foreclosure sale, whether or not the notice describes a sale adjourned as provided in this part. Notice under clauses (A) and (B) of this paragraph shall be mailed at least twenty-one days prior to the date of foreclosure sale, and shall be mailed to the owner or mortgagor at the address stated in the mortgage agreement, or, if none, to the address of the security property, or, at the discretion of the foreclosure commissioner, to any other address believed to be that of such owner or mortgagor. Notice under clause (C) of this paragraph shall be mailed at least ten days prior to the date of foreclosure sale, and shall be mailed to each such lienholder’s address as stated of record or, at the discretion of the foreclosure commissioner, to any other address believed to be that of such lienholder. Notice by mail pursuant to this subsection or section 368(b) of this part shall be deemed duly given upon mailing, whether or not received by the addressee and whether or not a return receipt is received or the letter is returned. (2) Publication.— A copy of the notice of default and foreclosure sale shall be published, as provided herein, once a week during three successive calendar weeks, and the date of last publication shall be not less than four nor more than twelve days prior to the sale date. The information included in the notice of default and foreclosure sale pursuant to section 367(a)(4) may be omitted, in the foreclosure commissioner’s discretion, from the Newspaper notice. published notice. Such publication shall be in a newspaper or newspapers having general circulation in the county or counties in which the security property being sold is located. To the extent practicable, the newspaper or newspapers chosen shall be a newspaper or newspapers, if any is available, having circulation conducive to achieving notice of foreclosure by publication. Should there be no newspaper published at least weekly which Posting in public place. has a general circulation in one of the counties in which the security property being sold is located, copies of the notice of default and foreclosure sale shall be posted in at least three public places in each such county at least twenty-one days prior to the date of sale. (3) Posting.— A copy of the notice of default and foreclosure sale shall be posted in a prominent place at or on the real property to be sold at least seven days prior to the foreclosure sale, and entry upon the premises for this purpose shall be privileged as against all persons. If the property consists of two or more noncontiguous parcels of land, a copy of the notice of default and foreclosure sale shall be posted in a prominent place on each such parcel. If the security property consists of two or more separate buildings, a copy of the notice of default and foreclosure sale shall be posted in a prominent place on each such building. Posting at or on the premises shall not be required where the foreclosure commissioner, in the commissioner’s sole discretion, finds that the act of posting will likely cause a breach of the peace or that posting may result in an increased risk of vandalism or damage to the property. Sec. 369A. presale reinstatement (a) Except as provided in sections 368(b) and 369B(c), the Sale cancellation conditions. 12 USC 3709. foreclosure commissioner shall withdraw the security property from foreclosure and cancel the foreclosure sale only if— (1) the Secretary so directs the commissioner prior to or at the time of sale; (2) the commissioner finds, upon application of the mortgagor at least three days prior to the date of sale, that the default or defaults upon which the foreclosure is based did not exist at the time of service of the notice of default and foreclosure sale; or (3) (A) in the case of a foreclosure involving a monetary default, there is tendered to the foreclosure commissioner before public auction is completed the entire amount of principal and interest which would be due if payments under the mortgage had not been accelerated; (B) in the case of a foreclosure involving a nonmonetary default, the foreclosure commissioner, upon application of the mortgagor before the date of foreclosure sale, finds that such default is cured; and (C) there is tendered to the foreclosure commissioner before public auction is completed all amounts due under the mortgage agreement (excluding additional amounts which would have been due if mortgage payments had been accelerated), all amounts of expenditures secured by the mortgage and ail costs of foreclosure incurred for which payment from the proceeds of foreclosure is provided in section 369C, except that the Secretary shall have discretion to refuse to cancel a foreclosure pursuant to this paragraph (3) if the current mortgagor or owner of record has on one or more previous occasions caused a foreclosure of the mortgage, commenced pursuant to this part or otherwise, to be canceled by curing a default. (b) Prior to withdrawing the security property from foreclosure in the circumstances described in subsection (a)(2) or (a)(3), the foreclosure commissioner shall afford the Secretary a reasonable opportunity to demonstrate why the security property should not be so withdrawn. (c) In any case in which a foreclosure commenced under this part is canceled, the mortgage shall continue in effect as though acceleration had not occurred. (d) If the foreclosure commissioner cancels a foreclosure sale under this part a new foreclosure may be subsequently commenced as provided in this part. Sec. 369B. conduct of sale; adjournment (a) The date of foreclosure sale set forth in the notice of default and foreclosure sale shall not be prior to thirty days after the due date of the earliest installment wholly unpaid or the earliest occurrence of any uncured nonmonetary default upon which foreclosure Public auction. is based. Foreclosure sale pursuant to this part shall be at public auction, and shall be scheduled to begin between the hours of 9 o’clock ante meridian and 4 o’clock post meridian local time on a day other than Sunday or a public holiday as defined by section 6103(a) of title 5, United States Code, or State law. The foreclosure sale shall be held at a location specified in the notice of default and foreclosure sale, which shall be a location where foreclosure real estate auctions are customarily held in the county or one of the counties in which the property to be sold is located, or at a courthouse therein, or at or on the property to be sold. Sale of security property situated in two or more counties may be held in any one of the counties in which any part of the security property is situated. (b) The foreclosure commissioner shall conduct the foreclosure sale in accordance with the provisions of this part and in a manner fair to both the mortgagor and the Secretary. The foreclosure commissioner shall attend the foreclosure sale in person, or, if there are two or more commissioners, at least one shall attend the foreclosure sale. In the event that no foreclosure commissioner is a natural person, the foreclosure commissioner shall cause its duly authorized employee to Written one-price sealed bids. attend the foreclosure sale to act on its behalf. Written one-price sealed bids shall be accepted by the foreclosure commissioner from the Secretary and other persons for entry by announcement by the commissioner at the sale. The Secretary and any other person may bid at the foreclosure sale, including the Secretary or any other person who has submitted a written one-price bid, except that the foreclosure commissioner or any relative, related business entity or employee of such commissioner or entity shall not be permitted to bid in any manner on the security property subject to foreclosure sale. The foreclosure commissioner may serve as auctioneer, or, in accordance with regulations of the Secretary, may employ an auctioneer to be paid from the commission provided for in section 369C(5). (c) The foreclosure commissioner shall have discretion, prior to or at the time of sale, to adjourn or cancel the foreclosure sale if the commissioner determines, in the commissioner’s sole discretion, that circumstances are not conducive to a sale which is fair to the mortgagor and the Secretary or that additional time is necessary to determine whether the security property should be withdrawn from foreclosure as provided in section 369A. The foreclosure commissioner may adjourn a sale to a later hour the same day without the giving of further notice, or may adjourn the foreclosure sale for not less than nine nor more than twenty-four days, in which case the commissioner shall serve a notice of default and foreclosure sale revised to recite that the foreclosure sale has been adjourned to a specified date and to include any corrections the foreclosure commissioner deems appropriate. Such notice shall be served by publication, mailing and posting in accordance with section 369, except that publication may be made on any of three separate days prior to the revised date of foreclosure sale, and mailing may be made at any time at least seven days prior to the date to which the foreclosure sale has been adjourned. Sec. 369C. foreclosure costs The following foreclosure costs shall be paid from the 12 USC 3711. sale proceeds prior to satisfaction of any other claim to such sale proceeds: (1) necessary advertising costs and postage incurred in giving notice pursuant to sections 369 and 369B; (2) mileage for posting notices and for the foreclosure commissioner’s attendance at the sale at the rate provided in section 1921 of title 28, United States Code, for mileage by the most reasonable road distance; (3) reasonable and necessary costs actually incurred in connection with any necessary search of title and lien records; (4) necessary out-of-pocket costs incurred by the foreclosure commissioner to record documents; and (5) a commission for the foreclosure commissioner for the conduct of the foreclosure to the extent authorized by regulations issued by the Secretary. Sec. 369D. disposition of sale proceeds Money realized from a foreclosure sale shall be made 12 USC 3712. available for obligation and expenditure— (1) first to cover the costs of foreclosure provided for in section 369C; (2) then to pay valid tax liens or assessments prior to the mortgage; (3) then to pay any liens recorded prior to the recording of the mortgage which are required to be paid in conformity with the terms of sale in the notice of default and foreclosure sale; (4) then to service charges and advancements for taxes, assessments, and property insurance premiums; (5) then to the interest; (6) then to the principal balance secured by the mortgage (including expenditures for the necessary protection, preservation, and repair of the security property as authorized under the mortgage agreement and interest thereon if provided for in the mortgage agreement); and (7) then to late charges. Any surplus after payment of the foregoing shall be paid to holders of Surplus proceeds. liens recorded after the mortgage and then to the appropriate mortgagor. If the person to whom such surplus is to be paid cannot be located, or if the surplus available is insufficient to pay all claimants and the claimants cannot agree on the allocation of the surplus, or if any person claiming an interest in the mortgage proceeds does not agree that some or all of the sale proceeds should be paid to a claimant as provided in this section, that part of the sale proceeds in question may be deposited by the foreclosure commissioner with an appropriate official or court authorized under law to receive disputed funds in such circumstances. If such a procedure for the deposit of disputed funds is not available, and the foreclosure commissioner files a bill of interpleader or is sued as a stakeholder to determine entitlement to such funds, the foreclosure commissioner’s necessary costs in taking or defending such action shall be deductible from the disputed funds. Sec. 369E. transfer of title and possession (a) The foreclosure commissioner shall deliver a deed or deeds to the purchaser or purchasers and obtain the balance of the purchase price in accordance with the terms of sale provided in the notice of default and foreclosure sale. (b) Subject to subsection (c), the foreclosure deed or deeds shall convey all of the right, title, and interest in the security property covered by the deed which the Secretary as holder, the foreclosure commissioner, the mortgagor, and any other persons claiming by, through, or under them, had on the date of execution of the mortgage, together with all of the right, title, and interest thereafter acquired by any of them in such property up to the hour of sale, and no judicial proceeding shall be required ancillary or supplementary to the procedures provided in this part to assure the validity of the conveyance or confirmation of such conveyance. (c) A purchaser at a foreclosure sale held pursuant to this part shall be entitled to possession upon passage of title to the mortgaged property, subject to an interest or interests senior to that of the mortgage and subject to the terms of any lease of a residential tenant for the remaining term of the lease or for one year, whichever period is shorter. Any other person remaining in possession after the sale and any residential tenant remaining in possession after the applicable period shall be deemed a tenant at sufferance. (d) There shall be no right of redemption, or right of possession based upon right of redemption, in the mortgagor or others subsequent to a foreclosure pursuant to this part. (e) When conveyance is made to the Secretary, no tax shall be imposed or collected with respect to the foreclosure commissioner’s deed, whether as a tax upon the instrument or upon the privilege of conveying or transferring title to the property. Failure to collect or pay a tax of the type and under the circumstances stated in the preceding sentence shall not be grounds for refusing to record such a deed, for failing to recognize such recordation as imparting notice or for denying the enforcement of such a deed and its provisions in any State or Federal court. Sec. 369F. record of foreclosure and sale (a) To establish a sufficient record of foreclosure and sale, the foreclosure commissioner shall include in the recitals of the deed to the purchaser or prepare an affidavit or addendum to the deed stating— (1) that the mortgage was held by the Secretary; (2) the particulars of the foreclosure commissioner’s service of notice of default and foreclosure sale in accordance with sections 369 and 369B; (3) that the foreclosure was conducted in accordance with the provisions of this part and with the terms of the notice of default and foreclosure sale; (4) a correct statement of the costs of foreclosure, calculated in accordance with section 369C; and (5) the name of the successful bidder and the amount of the successful bid. (b) The deed executed by the foreclosure commissioner, the foreclosure commissioner’s affidavit and any other instruments submitted for recordation in relation to the foreclosure of the security property under this part shall be accepted for recordation by the registrar of deeds or other appropriate official of the county or counties in which the security property is located upon tendering of payment of the usual recording fees for such instruments. Sec. 369G. computation of time Periods of time provided for in this part shall be 12 USC 3715. calculated in consecutive calendar days including the day or days on which the actions or events occur or are to occur for which the period of time is provided and including the day on which an event occurs or is to occur from which the period is to be calculated. Sec. 369H. separability If any clause, sentence, paragraph or part of this part 12 USC 3716. shall, for any reason, be adjudged by a court of competent jurisdiction to be invalid or invalid as applied to a class of cases, such judgment shall not affect, impair, or invalidate the remainder thereof and of this part, but shall be confined in its operation to the clause, sentence, paragraph, or part thereof directly involved in the controversy in which such judgment shall have been rendered. Sec. 369I. regulations The Secretary is authorized to issue such regulations as 12 USC 3717. may be necessary to carry out the provisions of this part. PART 7— EFFECTIVE DATE Sec. 371. effective date (a) Except as otherwise provided in this subtitle, the 12 USC 3701 note. provisions of this subtitle shall take effect on October 1, 1981. (b) The amendments made by sections 324, 325, and 326(a) shall Ante, pp. 405, 406. apply only with respect to contracts entered into on and after October 1, 1981. Subtitle B— Banking and Related Programs Sec. 380. short title This subtitle may be cited as the “Banking and Related Programs Authorization Adjustment Act”. Sec. 381. export-import bank of the united states (a) Section 7(a) of the Export-Import Bank Act of 1945 (12 U.S.C. 635e(a)) is amended— (1) by inserting “(1)” after “Sec. 7. (a)”; and (2) by adding at the end thereof the following: “(2) Within the limits of funds and borrowing authority available to the Bank pursuant to this Act, gross obligations for the principal amount of direct loans authorized by the Bank during fiscal years 1982 and 1983 shall not exceed $10,478,000,000, of which amount $5,065,000,000 is designated for fiscal year 1982 and $5,413,000,000 is designated for fiscal year 1983.”. (b) On or before December 15, 1981, the Secretary of the Treasury shall transmit a report to both Houses of the Congress regarding the status of negotiations within the Organization for Economic Cooperation and Development on improving the International Arrangement on Guidelines for Officially Supported Export Credits and on the status of any other multilateral or bilateral negotiations or discussions for the purpose of improving any other arrangements, standstills, minutes, and practices involving official export financing in which the United States participates. Such report shall include— (1) an assessment of the progress, if any, that has been made in these negotiations, and of the prospects for a successful conclusion to these negotiations within a reasonable time; and (2) a recommendation by the Secretary of the Treasury as to whether the Congress, in order to improve the prospects for a successful conclusion to these negotiations, should enact legislation for the purpose of enhancing the ability of the Export-Import Bank of the United States to offer or support export credit fully competitive with the subsidized official export credit offered or supported by other governments. Sec. 382. department of the treasury (a) Section 5 of the Act of November 8, 1978 (92 Stat. 3092; Public Law 95–612), is amended— (1) in subsection (a), by striking out “$24,000,000 for fiscal year 1979 and $22,375,000 for fiscal year 1980,” and inserting in lieu thereof “$22,896,000 for fiscal year 1982, and such sums as may be necessary for each fiscal year thereafter”; and (2) in subsection (b), by striking out “for fiscal year 1980 not to exceed $800,000” and inserting in lieu thereof “not to exceed $1,000,000 for fiscal year 1982, and such sums as may be necessary for each fiscal year thereafter,”. (b) The last sentence of section 3552 of the Revised Statutes (31 U.S.C. 369) is amended to read as follows: “There are authorized to be appropriated for fiscal year 1982 not to exceed $54,706,000 for all expenditures (salaries and expenses) of the mints and assay offices not herein otherwise provided for.”. (2) The amendment made by paragraph (1) shall take effect on October 1, 1981. Sec. 383. council on wage and price stability Section 6 of the Council on Wage and Price Stability Act (12 U.S.C. 1904 note) is hereby repealed. Sec. 384. usury provision Section 501(a)(1)(C)(vi) of the Depository Institutions Deregulation and Monetary Control Act of 1980 (12 U.S.C. 1735f–7 note) is amended by inserting “or a residential manufactured home” after “residential real property”. Sec. 385. reserve requirements (a) Section 19(b)(8)(E) of the Federal Reserve Act (12 U.S.C. 461(b)(8)(E)) is amended by striking out the first two sentences thereof 94 Stat. 133. and inserting in lieu thereof the following: “This subparagraph applies to any depository institution that, on August 1, 1978, (i) was engaged in business as a depository institution in a State outside the continental limits of the United States, and (ii) was not a member of the Federal Reserve System at any time on or after such date. Such a depository institution shall not be required to maintain reserves against its deposits held or maintained at its offices located in a State outside the continental limits of the United States until the first day of the sixth calendar year which begins after the effective date of the Monetary Control Act of 1980.”. (b) The third sentence of section 19(b)(8)(E) of such Act (12 U.S.C. 461(b)(8)(E)) is amended by striking out “its deposits” and inserting in lieu thereof “such deposits”. Subtitle C— National Consumer Cooperative Bank Act Amendments Sec. 390. short title This subtitle may be cited as the “National Consumer 12 USC 3001 note. Cooperative Bank Act Amendments of 1981”. Sec. 391. acceleration of final government equity redemption date (a) (1) The National Consumer Cooperative Bank Act (12 U.S.C. 3001 et seq.) is amended by inserting after section 115 the Post, p. 436. following: “Sec. 116. “acceleration of final government equity redemption date (a) (1) (A) The Final Government Equity Redemption Date 12 USC 3026. shall occur on December 31, 1981, or not later than 10 days after the date of the enactment of the first Act providing for appropriations for fiscal year 1982 (other than continuing appropriations) for the Department of Housing and Urban Development and Independent Agencies, whichever occurs later. “(B) Not later than 5 days after the Final Government Equity Publication in Federal Register. Redemption Date, the Secretary of the Treasury shall publish a notice in the Federal Register indicating the day on which the Final Government Equity Redemption Date occurred. “(2) (A) Before the Final Government Equity Redemption Date, the Secretary of the Treasury shall purchase all class A stock for which the Congress has appropriated funds. “(B) After the Final Government Equity Redemption Date, the Secretary of the Treasury shall not purchase any class A stock. “(3) (A) On the Final Government Equity Redemption Date, all class A stock held by the Secretary of the Treasury on such date shall be redeemed by the Bank in exchange for class A notes which are issued by the Bank to the Secretary of the Treasury on behalf of the United States and which have a total face value equal to the total par value of the class A stock which is so redeemed, plus any unpaid dividends on such stock. “(B) During the period beginning on the Final Government Equity Redemption Date and ending on December 31, 1990, not less than 30 percent of the revenue derived from the sale of stock by the Bank, other than the sale of class B stock or class C stock, shall be used, upon receipt, to retire class A notes. “(C) After December 31, 1990, the Bank shall maintain a repayment schedule for class A notes which will assure full repayment of all class A notes not later than December 31, 2020. The requirement specified in the previous sentence is in addition to the requirement regarding the redemption of class A notes which is specified in section 12 USC 3014. 104(c). “(b) (1) The United States shall not be responsible for any obligation of the Bank which is incurred after the Final Government Equity Redemption Date. “(2) As soon as practicable after the date of the enactment of this section, the Board shall adopt bylaws which will assist in expediting and coordinating the activities which will occur with respect to the Final Government Equity Redemption Date.”. (2) The amendment made by paragraph (1) shall take effect on the date of the enactment of this Act. (b) (1) Only for purposes of section 107(a) of the National Consumer Cooperative Bank Act (12 U.S.C. 3017(a)), class A notes shall be deemed to be paid-in capital of the Bank. (2) This subsection shall take effect on the day after the Final Government Equity Redemption Date. Sec. 392. tax status of the sank (a) Section 109 of the National Consumer Cooperative Bank Act (12 U.S.C. 3019) is amended— (1) by striking out “Until the Final Government Equity Redemption Date, but not thereafter, the Bank” and inserting in lieu thereof “(a) The Bank”; and (2) by adding at the end thereof the following: “(b) Notwithstanding any other provision of law, for purposes of 26 USC 1381. subchapter T of the Internal Revenue Code of 1954— “(1) the Bank shall be treated as a corporation operating on the cooperative basis within the meaning of section 1381(a)(2) of such Code; “(2) the term ‘patronage dividend’, as defined in section 1388(a) of such Code includes, only as such section applies to the Bank, any patronage refunds in the form of class B or class C stock or allocated surplus that are distributed or set aside by the Bank 12 USC 3014. pursuant to section 104(i) of this Act; “(3) the terms ‘written notice of allocation’ and ‘qualified written notices of allocation’, as defined in sections 1388 (b) and (c) of such Code, include (to the extent of par value), only as such sections apply to the Bank, any class B or class C stock distributed by the Bank pursuant to section 104(i) of this Act and shall also include any allocated surplus set aside by the Bank pursuant to section 104(i) of this Act; “(4) patrons of the Bank shall be deemed to have consented under section 1388(c)(2) of such Code to the inclusion in their incomes of any qualified written notices of allocation received by such patrons from the Bank; and “(5) any amounts required to be included in the incomes of patrons of the Bank with respect to class B or class C stock or allocated surplus shall be treated as earnings from business done by such patrons of the Bank with or for their own patrons.”. (b) The amendments made by subsection (a) shall take effect on the Effective date. 12 USC 3019 note. day after the Final Government Equity Redemption Date. Sec. 393. board of directors (a) Subsections (a), (b), (c), and (d) of section 103 of such Act (12 U.S.C. 3013) are amended to read as follows: “(a) The Bank shall be governed by a Board of Directors (hereinafter in this Act referred to as the ‘Board’) which shall consist of 15 members. All members shall serve for a term of 3 years. After the expiration of the term of any member, such member may continue to serve until his successor has been elected or has been appointed and qualified. Any member appointed by the President may be removed Removal. for cause by the President. “(b) (1) The President shall appoint, by and with the advice and Appointment. consent of the Senate— “(A) one member who shall be selected from among proprietors of small business concerns, as defined under section 3 of the Small Business Act, which are manufacturers or retailers; 12 USC 371. “(B) one member who shall be selected from among the officers of the agencies and departments of the United States; and “(C) one member who shall be selected from among persons having extensive experience in the cooperative field representing low-income cooperatives eligible to borrow from the Bank. “(2) Twelve members of the Board shall be elected by the holders of class B stock and class C stock in accordance with the provisions of subsection (d) and the bylaws of the Bank. “(c) (1) On the day after the Final Government Equity Redemption Resignation. Date, all members of the Board of Directors of the Bank who were appointed by the President shall resign, except that— “(A) the member who shall have been appointed by the President from among proprietors of small business concerns, and “(B) one member who shall be designated by the President and who shall have been appointed by the President from among the officers and employees of the agencies and departments of the United States Government, may continue to serve until their successors have been appointed and qualified. “(2) Any member of the Board of Directors of the Bank who was elected by the holders of class B or class C stock before the Final Government Equity Redemption Date shall serve the remainder of the term for which such member was elected. “(3) Any member appointed pursuant to subsection (b)(1) shall be entitled to sit on any committee of the Board, but not more than one member so appointed may sit on any one committee. “(d) (1) All elections of members of the Board by the holders of class B stock and class C stock shall be conducted in accordance with the bylaws of the Bank. Such bylaws shall conform to the requirements of this section. Nominations for such elections shall be made by the following classes of cooperatives: (A) housing, (B) consumer goods, (C) low-income cooperatives, (D) consumer services, and (E) all other eligible cooperatives. “(2) (A) Vacant shareholder directorships shall be filled so that at Vacant shareholder directorships. any time when there are three or more shareholder directors on the Board, there shall be at least one director representing each of the following classes of cooperatives: (i) housing cooperatives, (ii) low-income cooperatives, and (ill) consumer goods and services cooperatives. “(B) Each nominee for a shareholder directorship of a particular class shall have at least three years experience as a director or senior officer in the class of cooperatives to be represented. “(C) No one class of cooperatives specified in paragraph (1) shall be represented on the Board by more than three directors.”, (b) Section 103(h) of such Act (12 U.S.C. 3013(h)) is amended— (1) in the second sentence thereof, by striking out “, until the Final Government Equity Redemption Date” and all that follows through “class B and class C stock” and inserting in lieu thereof “the member of the Board appointed pursuant to subsection (b)(1)(C)”; and (2) by adding at the end thereof the following: “The members of the Board who are elected by the holders of class B stock and class C stock shall be compensated in accordance with the bylaws of the Bank. All compensation and expenses paid to the members of the Board of Directors shall be paid by the Bank.”. (c) The amendments made by subsections (a) and (b) shall take effect on the day after the Final Government Equity Redemption Date. Sec. 394. examinations and audits; conforming amendments (a) (1) Section 115 of the National Consumer Cooperative Bank Act (12 U.S.C. 3025) is amended to read as follows: “Sec. 115. “examination and audit The Farm Credit Administration and the General Accounting Office are hereby authorized and directed to examine and Reports to Congress. audit the Bank. Reports regarding such examinations and audits shall be promptly forwarded to both Houses of the Congress. The Bank shall reimburse the Farm Credit Administration for the costs of any examination or audit conducted by the Farm Credit Administration.”. (2) The amendment made by paragraph (1) shall take effect on the day after the Final Government Equity Redemption Date. (b) The second sentence of section 108(a) of such Act (12 U.S.C. 3018(a)) is amended by striking out “October 1, 1983” and inserting in lieu thereof “October 1, 1985”. (c) (1) The first sentence of section 104(a) of such Act (12 U.S.C. 3014(a)) is amended by inserting “by other public or private investors,” after “by public bodies,”. (2) The amendment made by paragraph (1) shall take effect on the day after the Final Government Equity Redemption Date. (d) (1) The last sentence of section 102 of such Act (12 U.S.C. 3012) is amended to read as follows: “In determining whether a public offering is taking place for the purpose of the Securities Act of 1933, there shall be excluded from consideration all class B and class C stock purchases which took place prior to the date of the enactment of the National Consumer Cooperative Bank Act Amendments of 1981.”. (2) The amendment made by paragraph (1) shall take effect on the day after the Final Government Equity Redemption Date. (e) (1) The first sentence of section 105(a) of such Act (12 U.S.C. 3015(a)) is amended by striking out “entirely owned” and inserting in lieu thereof “primarily owned”. (2) The amendment made by paragraph (1) shall take effect on the Effective date. 12 USC 3015 note. day after the Final Government Equity Redemption Date. (f) Section 105(a)(5) of such Act (12 U.S.C. 3015(a)(5)) is amended by inserting “(except that this requirement shall not apply to any housing cooperative in existence on March 21, 1980, which did not meet such requirement on such date)” after “one vote per person basis”. (g) (1) The second sentence of section 107(a) of such Act (12 U.S.C. 3017(a)) is amended by striking out “after consultation with the Secretary of the Treasury”. (2) The amendment made by paragraph (1) shall take effect on the Effective date. 12 USC 3017 note. day after the Final Government Equity Redemption Date. Sec. 395. nonprofit corporation (a) The National Consumer Cooperative Bank Act (12 U.S.C. 3001 et seq.) is amended by inserting after section 210 the following: “Sec. 211. “establishment of nonprofit corporation (a) (1) Upon the incorporation of the nonprofit corporation 12 USC 3051. described in subsection (b), the Office of Self-Help Development and Technical Assistance is hereby abolished. “(2) (A) If the nonprofit corporation described in subsection (b) agrees to accept the liabilities of the Office, the Bank, notwithstanding any other provision of law, shall transfer all assets, liabilities, and property of the Office to such nonprofit corporation on the day on which such nonprofit corporation is incorporated. “(B) Such assets shall include all sums which are appropriated to the Office by the Congress and all sums which are contained in the Account established pursuant to section 202. If any such sums are 12 USC 3042. appropriated after the date on which the transfer described in subparagraph (A) occurs, the Bank shall promptly transfer such sums to such nonprofit corporation. “(b) (1) As soon as possible after the date of the enactment of this section, the Board shall establish a nonprofit corporation under the laws of the District of Columbia and, notwithstanding the laws of the District of Columbia, name the directors of such nonprofit corporation. “(2) Notwithstanding the laws of the District of Columbia, the Board of Directors of such nonprofit corporation shall— “(A) select an executive director who shall be responsible for the administration of such nonprofit corporation; “(B) set the compensation of such executive director and the other employees of such nonprofit corporation; “(C) promulgate and publish the policies of such nonprofit corporation and make such policies available at all times to eligible cooperatives; and “(D) perform the functions specified in subparagraphs (A) and (C) of paragraph (3). “(3) Such nonprofit corporation shall only perform— Functions. “(A) the functions which are authorized to be performed pursuant to sections 203 through 208 and section 210; 12 USC 3043–3048, 3050. “(B) such functions as are necessary to comply with the laws under which it was incorporated in the District of Columbia; and “(C) such functions as are necessary to remain qualified as an organization described in section 501(c)(3) of the Internal Revenue Code of 1954. 26 USC 501. “(4) Notwithstanding any other provision of law— “(A) the Bank may provide administrative or staff support to such nonprofit corporation; and “(B) any member of the Board of Directors of the Bank may serve as a member of the Board of Directors of such nonprofit corporation. “(c) (1) Notwithstanding any other provision of law, such nonprofit corporation shall be deemed to be, and treated as, qualified as an organization described in section 501(c)(3) of the Internal Revenue 26 USC 501. Code of 1954 from the date on which such nonprofit corporation is established under the laws of the District of Columbia until the date on which the Internal Revenue Service makes a final determination on the application which such nonprofit corporation will submit to the Internal Revenue Service seeking status as an organization qualifying under such section. “(2) When performed by such nonprofit corporation, the functions described in subsection (b)(3)(A) shall be deemed to be performed for ‘charitable purposes’ within the meaning of section 501(c)(3) of the Internal Revenue Code of 1954. “(d) (1) The Board of Directors of the Bank may make contributions to the nonprofit corporation in such amounts as the Board of Directors of the Bank deems appropriate, except that— “(A) such contributions may be made only out of the Bank’s earnings, determined in accordance with generally accepted accounting principles; and “(B) the Bank shall set aside amounts sufficient to satisfy its obligations to the Secretary of the Treasury for payments of principal and interest on class A notes and other debt before making any contributions to such nonprofit corporation. “(2) During any period in which the nonprofit corporation described in subsection (b) is qualified as an organization described in section 501(c)(3) of the Internal Revenue Code of 1954, contributions made by the Bank pursuant to paragraph (1) shall be treated as charitable contributions within the meaning of section 170(c)(2) of the 26 USC 170. Internal Revenue Code of 1954, and may be deducted notwithstanding the provisions of section 170(b)(2) of such Code. “(3) During any period in which the nonprofit corporation described in subsection (b) is qualified as an organization described in section 501(c)(3) of the Internal Revenue Code of 1954, contributions to such nonprofit corporation by any person shall qualify as charitable contributions, as defined in section 170(c) of such Code, for purposes of the charitable contribution deduction provided for in section 170(a) of such Code, and shall also qualify for the deductions for estate and gift tax purposes provided for in sections 2055 and 2522 26 USC 2055, 2522. of the Internal Revenue Code of 1954. “(e) Notwithstanding the laws of the District of Columbia, the Board of Directors of such nonprofit corporation shall adopt and publish its own conflict of interest rules which shall be no less stringent in effect than the conflict of interest provisions adopted by 12 USC 3024. the Board of Directors of the Bank pursuant to section 114.”. (b) (1) The first sentence of section 202 of the National Consumer Cooperative Bank Act (12 U.S.C. 3042) is amended by striking out “$10,000,000 for the fiscal year ending September 30, 1979, and for the next two succeeding fiscal years an aggregate amount not to exceed $65,000,000, for the purpose of making advances under section 12 USC 3043. 203 of this Act” and by inserting in lieu thereof “for the purpose of making advances under section 203 of this Act an amount not to exceed $14,000,000 for fiscal year 1982”. (2) Section 104(a) of such Act (12 U.S.C. 3014(a)) is amended by Appropriation authorization. striking out the second and third sentences thereof and inserting in lieu thereof the following: “There are authorized, to be appropriated not to exceed $47,000,000 for fiscal year 1982 for purposes of purchasing class A stock.”. (3) The amendments made by paragraphs (1) and (2) shall take Effective date. 12 USC 3014 note. effect on October 1, 1981. Sec. 396. conforming amendments; definitions (a) For purposes of this subtitle, the term “Final Government 12 USC 3012 note. Equity Redemption Date” shall have the same meaning given such term in section 101(5) of the National Consumer Cooperative Bank Act (12 U.S.C. 3011(5)). (b) The first sentence of section 101 of the National Consumer Cooperative Bank Act (12 U.S.C. 3011) is amended to read as follows: “The Congress of the United States hereby creates and charters a body corporate to be known as the National Consumer Cooperative Bank (hereinafter in this Act referred to as the ‘Bank’).”. (c) (1) Section 104(b) of such Act (12 U.S.C. 3014(b)) is amended— (A) in the first sentence, by striking out “class A, class B,” and inserting in lieu thereof “class B”; and (B) by amending the second and third sentences to read as follows: “Class A notes which are held by the United States shall have first preference with respect to assets and interest payments over all classes of stock issued by the Bank. So long as any class A notes are outstanding, the Bank shall not pay any dividend on any class of stock at a rate greater than the statutory interest rate payable on class A notes.”. (2) Section 104(c) of such Act (12 U.S.C. 3014(c)) is amended— (A) by striking out the first sentence thereof; (B) in the second sentence— (i) by striking out “class A stock” and inserting in lieu thereof “class A notes”; (ii) by striking out “dividends” each place it appears therein and inserting in lieu thereof “interest payments”; and (iii) by striking out “: Provided, That” and inserting in lieu thereof “, except that”; (C) in the third sentence, by striking out “dividends” and inserting in lieu thereof “interest payments”; (D) by amending the fourth sentence to read as follows: “Any such interest payment may be deferred by the Board of Directors with the approval of the Secretary of the Treasury, except that any interest payment so deferred shall bear interest at a rate equal to the rate determined pursuant to the first sentence of this subsection.”; (E) in the fifth sentence, by striking out “any other class of stock” and all that follows through the end thereof and inserting in lieu thereof “any class of stock at any time when the deferred interest payments on class A notes shall not have been paid in full, together with any unpaid interest on such notes.”; (F) in the sixth sentence— (i) by striking out “class A stock” each place it appears therein and inserting in lieu thereof “class A notes”; (ii) by striking out “other”; (iii) by striking out “dividends” and inserting in lieu thereof “interest payments”; and (iv) by striking out “par value” and inserting in lieu thereof “face value”; and (G) in the seventh sentence— (i) by striking out “class A stock” each place it appears therein and inserting in lieu thereof “class A notes”; (ii) by striking out “cumulative dividends” and inserting in lieu thereof “interest payments”; (iii) by striking out “: Provided, That” and inserting in lieu thereof “, except that”; (iv) by striking out “of shares” after “fiscal year a number”; and (v) by striking out “par value” each place it appears therein and inserting in lieu thereof “face value”. (3) Section 104(e) of such Act (12 U.S.C. 3014(e)) is amended— (A) by striking out “class A stock” each place it appears therein and inserting in lieu thereof “class A notes”; and (B) in the last sentence thereof, by striking out “statutory dividend” and inserting in lieu thereof “statutory interest payment”. (4) Section 104(f) of such Act (12 U.S.C. 3014(f)) is amended— (A) by striking out “class A stock is” and inserting in lieu thereof “class A notes are”; and (B) by striking out “class A stock as to dividends” and inserting in lieu thereof “class A notes as to dividends, interest payments,”. (5) Section 104(g)(2)(B) of such Act (12 U.S.C. 3014(g)(2)(B)) is amended by striking out “section 103(c)” and inserting in lieu thereof “section 103(d)(2)(A).”. (6) The second sentence of section 104(h) of such Act (12 U.S.C. 3014(h)) is hereby repealed. (7) The first sentence of section 104(i) of such Act (12 U.S.C. 3014(i)) is amended— (A) by striking out “cumulative dividends on class A stock” and inserting in lieu thereof “interest payments on class A notes”; and (B) by striking out “class A stock in” and inserting in lieu thereof “class A notes in”. (d) Section 107 of such Act (12 U.S.C. 3017) is amended— (1) by striking out subsection (b); and (2) by redesignating subsections (c) and (d) as subsections (b) and (c), respectively. (e) The second sentence of section 108(b) of such Act (12 U.S.C. 3018(b)) is amended by striking out “, but so long as” and all that follows through “class B stock in the Bank”. (f) The last sentence of section 114 of such Act (12 U.S.C. 3024) is hereby repealed. (g) Section 203 of such Act (12 U.S.C. 3043) is amended by striking out “out of the Account” each place it appears therein. (h) (1) Section 201 of the Government Corporation Control Act (31 U.S.C. 856) is amended by striking out “(7) the Rural Telephone Bank” and all that follows through the end thereof and inserting in lieu thereof “(7) the Rural Telephone Bank, (8) the United States Railway Association, and (9) the National Credit Union Administration Central Liquidity Facility.”. (2) Section 302 of the Government Corporation Control Act (31 U.S.C. 867) is amended— (A) by inserting “or” after “the Regional Banks for Cooperatives,”; and (B) by striking out “or the National Consumer Cooperative Bank,”. (3) The second sentence of section 303(d) of the Government Corporation Control Act (31 U.S.C. 868(d)) is amended by striking out “National Consumer Cooperative Bank,”. (4) Section 5315 of title 5, United States Code, is amended by striking out “Director, Office of Self-Help Development and Technical Assistance, National Consumer Cooperative Bank.”. (i) The amendments made by subsections (b) through (h) shall take Effective date. 12 USC 3011 note. effect on the day after the Final Government Equity Redemption Date.

   Effective date note
   Pub. L. 97–35, title III, § 394(c)(2), Aug. 13, 1981, 95 Stat. 436, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect on the day after the Final Government Equity Redemption Date [Dec. 31, 1981].” For definition of “Final Government Equity Redemption Date”, see section 396(a) of Pub. L. 97–35, set out as a note under section 3012 of this title. Pub. L. 97–35, title III, § 395(b)(3), Aug. 13, 1981, 95 Stat. 439, provided that: “The amendments made by paragraphs (1) [amending section 3042 of this title] and (2) [amending this section] shall take effect on October 1, 1981.” Amendment by section 396(c) of Pub. L. 97–35 effective on the day after the Final Government Equity Redemption Date (Dec. 31, 1981), see section 396(i) of Pub. L. 97–35, set out as an Effective Date of 1981 Amendment note under section 3011 of this title.

3. 1981

   Pub. L. 97–35 § 396(c)(1) · 95 Stat. 357

   1. Substituted · 12 U.S.C. § 3014(b)

      Pub. L. 97–35, § 396(c)(1), substituted “class B” for “class A, class B,”

   2. Substituted · 12 U.S.C. § 3014(b)

      Pub. L. 97–35, § 396(c)(1), substituted provisions relating to class A notes, for provisions relating to class A preferred stock

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 97–35, § 396(c)(1), substituted “class B” for “class A, class B,”, and substituted provisions relating to class A notes, for provisions relating to class A preferred stock.

   Enacted provision · exact public law section
   (1) Section 104(b) of such Act (12 U.S.C. 3014(b)) is amended— (A) in the first sentence, by striking out “class A, class B,” and inserting in lieu thereof “class B”; and (B) by amending the second and third sentences to read as follows: “Class A notes which are held by the United States shall have first preference with respect to assets and interest payments over all classes of stock issued by the Bank. So long as any class A notes are outstanding, the Bank shall not pay any dividend on any class of stock at a rate greater than the statutory interest rate payable on class A notes.”.

   Effective date note
   Pub. L. 97–35, title III, § 394(c)(2), Aug. 13, 1981, 95 Stat. 436, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect on the day after the Final Government Equity Redemption Date [Dec. 31, 1981].” For definition of “Final Government Equity Redemption Date”, see section 396(a) of Pub. L. 97–35, set out as a note under section 3012 of this title. Pub. L. 97–35, title III, § 395(b)(3), Aug. 13, 1981, 95 Stat. 439, provided that: “The amendments made by paragraphs (1) [amending section 3042 of this title] and (2) [amending this section] shall take effect on October 1, 1981.” Amendment by section 396(c) of Pub. L. 97–35 effective on the day after the Final Government Equity Redemption Date (Dec. 31, 1981), see section 396(i) of Pub. L. 97–35, set out as an Effective Date of 1981 Amendment note under section 3011 of this title.

4. 1981

   Pub. L. 97–35 § 396(c)(2) · 95 Stat. 357

   Substituted · 12 U.S.C. § 3014(c)

   Pub. L. 97–35, § 396(c)(2), substituted provisions relating to interest payments, redemption, etc., of class A notes, for provisions relating to issuance, dividends, etc., of class A stock

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 97–35, § 396(c)(2), substituted provisions relating to interest payments, redemption, etc., of class A notes, for provisions relating to issuance, dividends, etc., of class A stock.

   Enacted provision · exact public law section
   (2) Section 104(c) of such Act (12 U.S.C. 3014(c)) is amended— (A) by striking out the first sentence thereof; (B) in the second sentence— (i) by striking out “class A stock” and inserting in lieu thereof “class A notes”; (ii) by striking out “dividends” each place it appears therein and inserting in lieu thereof “interest payments”; and (iii) by striking out “: Provided, That” and inserting in lieu thereof “, except that”; (C) in the third sentence, by striking out “dividends” and inserting in lieu thereof “interest payments”; (D) by amending the fourth sentence to read as follows: “Any such interest payment may be deferred by the Board of Directors with the approval of the Secretary of the Treasury, except that any interest payment so deferred shall bear interest at a rate equal to the rate determined pursuant to the first sentence of this subsection.”; (E) in the fifth sentence, by striking out “any other class of stock” and all that follows through the end thereof and inserting in lieu thereof “any class of stock at any time when the deferred interest payments on class A notes shall not have been paid in full, together with any unpaid interest on such notes.”; (F) in the sixth sentence— (i) by striking out “class A stock” each place it appears therein and inserting in lieu thereof “class A notes”; (ii) by striking out “other”; (iii) by striking out “dividends” and inserting in lieu thereof “interest payments”; and (iv) by striking out “par value” and inserting in lieu thereof “face value”; and (G) in the seventh sentence— (i) by striking out “class A stock” each place it appears therein and inserting in lieu thereof “class A notes”; (ii) by striking out “cumulative dividends” and inserting in lieu thereof “interest payments”; (iii) by striking out “: Provided, That” and inserting in lieu thereof “, except that”; (iv) by striking out “of shares” after “fiscal year a number”; and (v) by striking out “par value” each place it appears therein and inserting in lieu thereof “face value”.

   Effective date note
   Pub. L. 97–35, title III, § 394(c)(2), Aug. 13, 1981, 95 Stat. 436, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect on the day after the Final Government Equity Redemption Date [Dec. 31, 1981].” For definition of “Final Government Equity Redemption Date”, see section 396(a) of Pub. L. 97–35, set out as a note under section 3012 of this title. Pub. L. 97–35, title III, § 395(b)(3), Aug. 13, 1981, 95 Stat. 439, provided that: “The amendments made by paragraphs (1) [amending section 3042 of this title] and (2) [amending this section] shall take effect on October 1, 1981.” Amendment by section 396(c) of Pub. L. 97–35 effective on the day after the Final Government Equity Redemption Date (Dec. 31, 1981), see section 396(i) of Pub. L. 97–35, set out as an Effective Date of 1981 Amendment note under section 3011 of this title.

5. 1981

   Pub. L. 97–35 § 396(c)(3) · 95 Stat. 357

   Substituted · 12 U.S.C. § 3014(e)

   Pub. L. 97–35, § 396(c)(3), substituted provisions relating to class A notes, for provisions relating to class A stock

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 97–35, § 396(c)(3), substituted provisions relating to class A notes, for provisions relating to class A stock.

   Enacted provision · exact public law section
   (3) Section 104(e) of such Act (12 U.S.C. 3014(e)) is amended— (A) by striking out “class A stock” each place it appears therein and inserting in lieu thereof “class A notes”; and (B) in the last sentence thereof, by striking out “statutory dividend” and inserting in lieu thereof “statutory interest payment”.

   Effective date note
   Pub. L. 97–35, title III, § 394(c)(2), Aug. 13, 1981, 95 Stat. 436, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect on the day after the Final Government Equity Redemption Date [Dec. 31, 1981].” For definition of “Final Government Equity Redemption Date”, see section 396(a) of Pub. L. 97–35, set out as a note under section 3012 of this title. Pub. L. 97–35, title III, § 395(b)(3), Aug. 13, 1981, 95 Stat. 439, provided that: “The amendments made by paragraphs (1) [amending section 3042 of this title] and (2) [amending this section] shall take effect on October 1, 1981.” Amendment by section 396(c) of Pub. L. 97–35 effective on the day after the Final Government Equity Redemption Date (Dec. 31, 1981), see section 396(i) of Pub. L. 97–35, set out as an Effective Date of 1981 Amendment note under section 3011 of this title.

6. 1981

   Pub. L. 97–35 § 396(c)(4) · 95 Stat. 357

   Substituted · 12 U.S.C. § 3014(f)

   Pub. L. 97–35, § 396(c)(4), substituted provisions relating to class A notes, for provisions relating to class A stock

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 97–35, § 396(c)(4), substituted provisions relating to class A notes, for provisions relating to class A stock.

   Enacted provision · exact public law section
   (4) Section 104(f) of such Act (12 U.S.C. 3014(f)) is amended— (A) by striking out “class A stock is” and inserting in lieu thereof “class A notes are”; and (B) by striking out “class A stock as to dividends” and inserting in lieu thereof “class A notes as to dividends, interest payments,”.

   Effective date note
   Pub. L. 97–35, title III, § 394(c)(2), Aug. 13, 1981, 95 Stat. 436, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect on the day after the Final Government Equity Redemption Date [Dec. 31, 1981].” For definition of “Final Government Equity Redemption Date”, see section 396(a) of Pub. L. 97–35, set out as a note under section 3012 of this title. Pub. L. 97–35, title III, § 395(b)(3), Aug. 13, 1981, 95 Stat. 439, provided that: “The amendments made by paragraphs (1) [amending section 3042 of this title] and (2) [amending this section] shall take effect on October 1, 1981.” Amendment by section 396(c) of Pub. L. 97–35 effective on the day after the Final Government Equity Redemption Date (Dec. 31, 1981), see section 396(i) of Pub. L. 97–35, set out as an Effective Date of 1981 Amendment note under section 3011 of this title.

7. 1981

   Pub. L. 97–35 § 396(c)(5) · 95 Stat. 357

   Substituted · 12 U.S.C. § 3014(g)(2)(B)

   Pub. L. 97–35, § 396(c)(5), substituted “3013(d)(2)(A)” for “3013(c)”

   Source evidence

   Code amendment note
   Subsec. (g)(2)(B). Pub. L. 97–35, § 396(c)(5), substituted “3013(d)(2)(A)” for “3013(c)”.

   Enacted provision · exact public law section
   (5) Section 104(g)(2)(B) of such Act (12 U.S.C. 3014(g)(2)(B)) is amended by striking out “section 103(c)” and inserting in lieu thereof “section 103(d)(2)(A).”.

   Effective date note
   Pub. L. 97–35, title III, § 394(c)(2), Aug. 13, 1981, 95 Stat. 436, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect on the day after the Final Government Equity Redemption Date [Dec. 31, 1981].” For definition of “Final Government Equity Redemption Date”, see section 396(a) of Pub. L. 97–35, set out as a note under section 3012 of this title. Pub. L. 97–35, title III, § 395(b)(3), Aug. 13, 1981, 95 Stat. 439, provided that: “The amendments made by paragraphs (1) [amending section 3042 of this title] and (2) [amending this section] shall take effect on October 1, 1981.” Amendment by section 396(c) of Pub. L. 97–35 effective on the day after the Final Government Equity Redemption Date (Dec. 31, 1981), see section 396(i) of Pub. L. 97–35, set out as an Effective Date of 1981 Amendment note under section 3011 of this title.

8. 1981

   Pub. L. 97–35 § 396(c)(6) · 95 Stat. 357

   Struck · 12 U.S.C. § 3014(h)

   Pub. L. 97–35, § 396(c)(6), struck out provision respecting treatment of the Bank as a governmental unit within section 170(b)(1)(A)(v) of title 26

   Source evidence

   Code amendment note
   Subsec. (h). Pub. L. 97–35, § 396(c)(6), struck out provision respecting treatment of the Bank as a governmental unit within section 170(b)(1)(A)(v) of title 26.

   Enacted provision · exact public law section
   (6) The second sentence of section 104(h) of such Act (12 U.S.C. 3014(h)) is hereby repealed.

   Effective date note
   Pub. L. 97–35, title III, § 394(c)(2), Aug. 13, 1981, 95 Stat. 436, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect on the day after the Final Government Equity Redemption Date [Dec. 31, 1981].” For definition of “Final Government Equity Redemption Date”, see section 396(a) of Pub. L. 97–35, set out as a note under section 3012 of this title. Pub. L. 97–35, title III, § 395(b)(3), Aug. 13, 1981, 95 Stat. 439, provided that: “The amendments made by paragraphs (1) [amending section 3042 of this title] and (2) [amending this section] shall take effect on October 1, 1981.” Amendment by section 396(c) of Pub. L. 97–35 effective on the day after the Final Government Equity Redemption Date (Dec. 31, 1981), see section 396(i) of Pub. L. 97–35, set out as an Effective Date of 1981 Amendment note under section 3011 of this title.

9. 1981

   Pub. L. 97–35 § 396(c)(7) · 95 Stat. 357

   Substituted · 12 U.S.C. § 3014(i)

   Pub. L. 97–35, § 396(c)(7), substituted provisions relating to class A notes, for provisions relating to class A stock

   Source evidence

   Code amendment note
   Subsec. (i). Pub. L. 97–35, § 396(c)(7), substituted provisions relating to class A notes, for provisions relating to class A stock.

   Enacted provision · exact public law section
   (7) The first sentence of section 104(i) of such Act (12 U.S.C. 3014(i)) is amended— (A) by striking out “cumulative dividends on class A stock” and inserting in lieu thereof “interest payments on class A notes”; and (B) by striking out “class A stock in” and inserting in lieu thereof “class A notes in”.

   Effective date note
   Pub. L. 97–35, title III, § 394(c)(2), Aug. 13, 1981, 95 Stat. 436, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect on the day after the Final Government Equity Redemption Date [Dec. 31, 1981].” For definition of “Final Government Equity Redemption Date”, see section 396(a) of Pub. L. 97–35, set out as a note under section 3012 of this title. Pub. L. 97–35, title III, § 395(b)(3), Aug. 13, 1981, 95 Stat. 439, provided that: “The amendments made by paragraphs (1) [amending section 3042 of this title] and (2) [amending this section] shall take effect on October 1, 1981.” Amendment by section 396(c) of Pub. L. 97–35 effective on the day after the Final Government Equity Redemption Date (Dec. 31, 1981), see section 396(i) of Pub. L. 97–35, set out as an Effective Date of 1981 Amendment note under section 3011 of this title.

10. 1989

    National Consumer Cooperative Bank Amendments of 1989

    Pub. L. 101–206 § 2 · 103 Stat. 1832

    1. Substituted · 12 U.S.C. § 3014(c)

       Pub. L. 101–206 substituted “The holder of class A notes shall be entitled to interest at a rate or rates determined by the Secretary of the Treasury, taking into consideration the current average yield on outstanding marketable obligations of the United States of comparable terms and conditions as of the last day of the month preceding each issuance of such class A notes to the Secretary of the Treasury, except that, until October 1, 1990, interest payments shall not exceed 25 percent of gross revenues for the year, less necessary operating expenses including a reserve for possible losses. From time to time, the Bank may, with the approval of the Secretary of the Treasury and consistent with the terms of this chapter, issue replacement class A notes upon terms and conditions to be agreed upon by the Bank and the Secretary, bearing interest as provided in this subsection, in substitution for those class A notes previously issued.” for “The holder of class A notes shall be entitled to interest payments at a rate determined by the Secretary of the Treasury taking into consideration the average market yield, during the month preceding the close of each fiscal year, on outstanding marketable obligations of the United States of comparable maturity, except that until October 1, 1990, such interest payments shall not exceed 25 per centum of gross revenues for the year less necessary operating expenses, including a reserve for possible losses. Such interest payments shall be payable annually into miscellaneous receipts of the Treasury and shall be cumulative.”

    2. Inserted · 12 U.S.C. § 3014(c)

       Pub. L. 101–206 inserted at end “All class A notes shall be redeemed by the Bank no later than October 31, 2020.”

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 101–206 substituted “The holder of class A notes shall be entitled to interest at a rate or rates determined by the Secretary of the Treasury, taking into consideration the current average yield on outstanding marketable obligations of the United States of comparable terms and conditions as of the last day of the month preceding each issuance of such class A notes to the Secretary of the Treasury, except that, until October 1, 1990, interest payments shall not exceed 25 percent of gross revenues for the year, less necessary operating expenses including a reserve for possible losses. From time to time, the Bank may, with the approval of the Secretary of the Treasury and consistent with the terms of this chapter, issue replacement class A notes upon terms and conditions to be agreed upon by the Bank and the Secretary, bearing interest as provided in this subsection, in substitution for those class A notes previously issued.” for “The holder of class A notes shall be entitled to interest payments at a rate determined by the Secretary of the Treasury taking into consideration the average market yield, during the month preceding the close of each fiscal year, on outstanding marketable obligations of the United States of comparable maturity, except that until October 1, 1990, such interest payments shall not exceed 25 per centum of gross revenues for the year less necessary operating expenses, including a reserve for possible losses. Such interest payments shall be payable annually into miscellaneous receipts of the Treasury and shall be cumulative.” and inserted at end “All class A notes shall be redeemed by the Bank no later than October 31, 2020.”

    Enacted provision · exact public law section
    SEC. 2. AMENDMENTS RELATING TO CLASS A NOTES. Section 104(c) of the National Consumer Cooperative Bank Act (12 U.S.C. 3014(c)) is amended— (1) by striking out the first 2 sentences and inserting the following: “The holder of class A notes shall be entitled to interest at a rate or rates determined by the Secretary of the Treasury, taking into consideration the current average yield on outstanding marketable obligations of the United States of comparable terms and conditions as of the last day of the month preceding each issuance of such class A notes to the Secretary of the Treasury, except that, until October 1, 1990, interest payments shall not exceed 25 percent of gross revenues for the year, less necessary operating expenses including a reserve for possible losses. From time to time, the Bank may, with the approval of the Secretary of the Treasury and consistent with the terms of this Act, issue replacement class A notes upon terms and conditions to be agreed upon by the Bank and the Secretary, bearing interest as provided in this subsection (c), in substitution for those class A notes previously issued.”; and (2) by adding at the end the following: “All class A notes shall be redeemed by the Bank no later than October 31, 2020.”.

11 of 13 references resolved to an enrolled provision · 2 partial