# Department of Housing and Urban Development Reform Act of 1989

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An Act To amend Federal laws to reform housing, community and neighborhood development, and related programs, and for other purposes.
    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

### Section 1. Short Title and Table of Contents.

    (a) SHORT TITLE.—
       This Act may be cited as the ``Department of Housing and Urban Development Reform Act of 1989´´.
    (b) TABLE OF CONTENTS.—
       Sec. 1. Short Title and Table of Contents.
       TITLE I—REFORMS TO DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
          Subtitle A—Ethics
             Sec. 101. Allocation of housing assistance.
             Sec. 102. HUD accountability.
             Sec. 103. Prohibition of advance disclosure of funding decisions.
             Sec. 104. Reform of headquarters reserve.
             Sec. 105. Reform of CDBG discretionary fund and provision of technical assistance.
             Sec. 106. Waiver of regulation requirements and handbook provisions.
             Sec. 107. Civil money penalties against mortgagees and lenders.
             Sec. 108. Civil money penalties against multifamily mortgagors.
             Sec. 109. Civil money penalties against section 202 mortgagors.
             Sec. 110. Civil money penalties against GNMA issuers.
             Sec. 111. Civil money penalties for violations of Interstate Land Sales Full Disclosure Act.
             Sec. 112. Registration of consultants.
          Subtitle B—Management Reform
             Sec. 121. Establishment of HUD Chief Financial Officer.
             Sec. 122. Establishment of FHA Comptroller.
             Sec. 123. Expediting rulemaking.
             Sec. 124. Funding for program evaluation and monitoring.
             Sec. 125. Refinancing of section 235 mortgages.
             Sec. 126. Sanctions for improper conveyances under urban homestead programs.
             Sec. 127. Reform of moderate rehabilitation program.
          Subtitle C—Federal Housing Administration Reforms
             Sec. 131. Annual audited financial statements.
             Sec. 132. Credit reviews of persons acquiring mortgaged properties under single family program for life of mortgage.
             Sec. 133. Repeal of title X land development program.
             Sec. 134. Civil money penalties for improper dealer and loan broker participation in origination of property improvement loans.
             Sec. 135. Notification regarding suspended mortgagees.
             Sec. 136. FHA foreclosed properties.
             Sec. 137. Report regarding providing foreclosed properties to 1989 disaster victims.
             Sec. 138. Report regarding actions to improve direct endorsement program.
             Sec. 139. Co-insurance amendments.
             Sec. 140. FHA management.
             Sec. 141. Contracting for financial management support.
             Sec. 142. FHA operations.
             Sec. 143. Elimination of private investor-owners from single family mortgage insurance program.
       TITLE II—HOUSING PRESERVATION
          Sec. 201. Limitations on prepayment.
          Sec. 202. Clarification of applicability to voluntary termination of insurance.
          Sec. 203. Incentives to extend low-income use.
          Sec. 204. Preservation.
          Sec. 205. Report on property disposition demonstration.
          Sec. 206. Prohibition on prepayment of new rural housing loans.
          Sec. 207. Equity takeout incentive for new rural housing loans.
       TITLE III—HOUSING PROGRAM EXTENSIONS AND CHANGES
          Sec. 301. Flexible subsidy program.
          Sec. 302. Continuation of public housing economic rent.
          Sec. 303. Extension of reciprocity in approval of housing subdivisions among Federal agencies.
          Sec. 304. HODAG Amendment.
       TITLE IV—RURAL HOUSING
          Sec. 401. Accountability in awards of assistance; remedies and penalties.
          Sec. 402. Reuse of section 515 loan authority.
       TITLE V—NATIONAL COMMISSION ON SEVERELY DISTRESSED PUBLIC HOUSING
          Sec. 501. Purpose.
          Sec. 502. Establishment of Commission.
          Sec. 503. Membership of Commission.
          Sec. 504. Functions of the Commission.
          Sec. 505. Powers of Commission.
          Sec. 506. Authorization of appropriations.
          Sec. 507. Sunset.
       TITLE VI—NATIONAL COMMISSION ON NATIVE AMERICAN, ALASKA NATIVE, AND NATIVE HAWAIIAN HOUSING
          Sec. 601. Establishment.
          Sec. 602. Membership.
          Sec. 603. Functions of the Commission.
          Sec. 604. Powers of the Commission.
          Sec. 605. Authorization of appropriations.
       TITLE VII—MISCELLANEOUS
          Sec. 701. Nullification of right of redemption of single family mortgagors under section 312 rehabilitation loan program.
          Sec. 702. CDBG Grants to Indian tribes.
       TITLE VIII—SECTION 8 RENT ADJUSTMENTS
          Sec. 801. Annual adjustment factors for section 8 rents.
Approved December 15, 1989.

## Legislative History

* H.R. 1
   * CONGRESSIONAL RECORD, Vol. 135 (1989):
   ** Nov. 22, Passed/agreed to in Senate: Passed Senate with an amendment by Voice Vote.
   ** Nov. 22, House actions: On motion to agree to Senate amendment Agreed to without objection.
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