An Act to provide additional assistance for areas suffering a major disaster
PL 89-769 (S.1861), enacted 11/06/1966

1316 
PUBLIC LAW 89.769-NOV. 6, 1966 
[80 STAT. 
Public Law 89-769 
r 
. 
November 6, 1966 
A N A C T 
'• • 
-' 
To provide additional assistance for areas suffering a major disaster. 
Be it enacted hy the Senate and House of RepTeHentatives of the 
A^t^oTigle^^^^^^ ?7m2^e6^ States of America, in Congress assembled^ That this Act may be 
cited as the "Disaster Belief Act of 1966". 
DEFINITION 
SEC. 2. As used in this Act, the term "major disaster" means a 
major disaster as determined by the President pursuant to the Act 
entitled "An Act to authorize Federal assistance to States and local 
governments in major disasters, and for other purposes", approved 
64 Stat. 1109. 
September 30, 1950, as amended (42 U.S.C. 1855-1855g). 
FEDERAL LOAN 
ADJUSTMENTS 
SEC. 3. (a) Where such action is found to be necessary because of 
loss, destruction, or damage of the property, or impairment of the 
economic feasibility of the system, of borrowers under programs 
administered by the Rural Electrification Administration, resulting 
from a major disaster, the Secretary of Agriculture is authorized to 
adjust and to readjust the schedules for payment of principal and 
interest on loans to such borrowers, and to extend the maturity dates 
of such loans to a period not beyond forty years from the dates of 
such loans. The authority herein conferred is in addition to the loan 
extension authority provided in section 12 of the Rural Electrification 
Act. 
(b) The Secretary of Housing and Urban Development is author-
ized to refinance any note or other obligation w^hich is held by him in 
connection wdth any loan made by the Department of Housing and 
Urban Development or its predecessor in interest, or which is included 
within the revolving fund tor liquidating programs established by the 
1
2 use' noi -5 Iridependent Offices Appropriation Act of 1955, where he finds such 
refinancing necessary because of the loss, destruction, or damage to 
property or facilities securing such obligations as a result of a major 
disaster. The interest rate on any note or other obligation refinanced 
under this subsection may be reduced to a rate not less than (i) a rate 
determined by the Secretary of the Treasury taking into consideration 
the current average market yield on outstanding marketable obliga-
tions of the United States with remaining periods to maturity com-
parable to the average maturity of such note or other obligation, 
adjusted to the nearest one-eighth of 1 per centum, less (ii) not to 
exceed 2 per centum per annum, and the term thereof may be extended 
for such period as will provide a maturity of not to exceed forty years. 
The Secretary may authorize a suspension in the payment of principal 
and interest charges on, and an additional extension in the maturity 
of, any such loan for a period not to exceed five years if he determines 
that such action is necessary to avoid severe financial hardship. 
ysltln 8oo!^^' 
(c) Section 1820 of title 38, United States Code, is amended by 
adding at the end thereof the following new subsection: 
"(f) The Administrator is authorized to refinance any loan made 
or acquired by the Veterans' Administration when he finds such 
refinancing necessary because of the loss, destruction, or damage to 
property securing such loan as the result of a major disaster as deter-
mined by the President pursuant to the Act entitled "An Act to 
49 Stat. 1366. 
7 u s e 912. 
80 STAT.] 
PUBLIC LAW 89-769-NOV. 6, 1966 
1317 
authorize Federal assistance to States and local governments in major 
disasters, and for other purposes'", approved September 30, 1950, as 
amended (42 U.S.C. 1855-1855^). 
The interest rate on any loan 
64 stat. 1109. 
refinanced under this subsection may be reduced to a rate not less than 
(i) a rate determined by the Secretary of the Treasury taking into 
consideration the current average market yield on outstanding mar-
ketable obligations of the United States with remaining periods to 
maturity comparable to the average maturity of such loan, adjusted 
to the nearest one-eighth of 1 per centum, less (ii) not to exceed 2 per 
centum per annum, and the term thereof may be extended for such 
period as will provide a maturity of not to exceed forty years; except 
that the Administrator may authorize a suspension in the payment of 
principal and interest charges on, and an additional extension in (he 
maturity of, any such loan for a period not to exceed five years if he 
determines that such action is necessary to avoid severe financial 
hardship." 
FEDERAL HOUSING ADMINISTRATION—INSURED DISASTER LOANS 
SEC. 4. (a) Section 221 of the National Housing Act is amended by 
u u s c f m i 
striking out "family displaced from an urban renewal area or as a 
result of governmental action", "families displaced from urban renewal 
areas or as a result of governmental action", and "families displaced 
by urban renewal or other governmental action" each place they 
appear in subsections (a), (d) (2), (d) (3) (iii), (d) (6), and (f), and 
inserting in lieu thereof, as appropriate, "displaced family" or "dis-
placed families". 
(b) Section 221(f) of such Act is further amended by adding the 
following sentence at the end thereof: "As used in this section the terms 
'displaced family' and 'displaced families' shall mean a family or 
families displaced from an urban renewal area, or as a result of govern-
mental action, or as a result of a major disaster as determined by the 
]-*resident pursuant to the Act entitled 'An Act to authorize Federal 
assistance to States and local governments in major disasters, and for 
other purposes', approved September 30, 1950, as amended (42 U.S.C. 
1855-1855g)." 
DISASTER 
WARNINGS 
SEC. 5. The Secretary of Defense is authorized to utilize or to make 
available to other agencies the facilities of the civil defense communi-
cations system established and maintained pursuant to section 201(c) 
of the Federal Civil Defense Act of 1950, as amended (50 U.S.C. App. 
2281(c)), for the purpose of providing needed warning to govern- 
^
"
^ S'^'* ^248. 
mental authorities and the civilian population in areas endangered by 
imminent natural disasters. 
ASSISTANCE TO UNINCORPORATED 
COMMUNITIES 
SEC. 6. (a) The Act entitled "An Act to authorize Federal assist-
ance to States and local governments in major disasters, and for other 
purposes", approved September 30, 1950, as amended (42 U.S.C. 
1855), is amended by inserting before the semicolon at the end of 
section 2(e) a comma and the following: "and includes any rural 
community or unincorporated town or village for which an applica-
tion for assistance is made by a State or local government or govern-
mental agency". 
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PUBLIC LAW 89-769-NOV. 6, 1966 
[80 STAT. 
(b) Section 306 of the Consolidated Farmers Home Administra-
79lta!r*93u^' 
^^^^ ^^^ ^^ ^^^^' ^ amended (7 U.S.C. 1926), is amended by adding 
at the end thereof the following new subsection: 
"(c) In areas which have suffered major disasters the Secretary is 
authorized, without regard to the annual grant limitation in subsection 
(a) (2), to make or insure loans to associations, including corporations 
not operated for profit and public and quasi-public agencies, for the 
acquisition, construction, improvement, replacement, or extension of 
waste disposal systems and other public facilities damaged or destroyed 
as a result of a major disaster providing for community services in 
rural areas, when the Secretary determines that such action is neces-
sary for the rebuilding of a community or a portion thereof damaged 
by a disaster, and to make grants not to exceed 50 per centum of the 
cost of repair, reconstruction, or replacement of waste disposal 
systems, water systems, and other public facilities damaged or 
destroyed as a result of a major disaster providing for community 
services in these areas in any case in which repayment of a loan for 
such purposes from income would require a charge for such service 
which the Secretary determines to be beyond the ability of a majority 
of the users who might be served thereby to pay such charges and if 
such charge would exceed cost of such services in comparable com-
munities in the State." 
HIGHER EDUCATION FACILITIES ASSISTANCE I N DISASTER AREAS 
SEC. 7. (a) The Higher Education Facilities Act of 1963 (20 
77 Stat. 363. 
XJ.S.C. 701-757) Is amended by inserting immediately after the last 
section of such Act the following new section: 
" H I G H E R EDUCATION FACILITIES CONSTRUCTION ASSISTANCE I N MAJOR 
DISASTER AREAS 
"SEC. 408. (a) If the Director of the Office of Emergency Planning 
determines that a public institution of higher education is located in 
whole or in part within an area which, before July 1, 1967, has 
suffered a disaster which is a 'major disaster' as defined in section 
64 Stat. 1109. 
2(a) of the Act of September 30, 1950 (42 U.S.C. 1855a(a)), and if 
the Commissioner determines with respect to such public institution of 
higher education that— 
"(1) the academic facilities of the institution have been 
destroyed or seriously damaged as a result of the disaster; 
"(2) the institution is exercising due diligence in availing itself 
of State and other financial assistance available for the restoration 
or replacement of the facilities; and 
"(3) the institution does not have sufficient funds available to 
it from other sources, including the proceeds of insurance on tlie 
facilities, to provide for the restoration or replacement of the 
academic facilities so destroyed or seriously damaged, 
the Commissioner may provide the additional assistance necessary to 
enable the institution to carry out construction necessary to restore or 
replace the facilities, upon such terms and in such amounts (subject 
to the provisions of this section) as the Commissioner may consider to 
be in the public interest; but such additional assistance, plus the 
amount which he determines to be available to the institution from 
other sources, including the proceeds of insurance on the facilities, 
may not exceed the cost of construction incident to the restoration or 
80 STAT.] 
PUBLIC LAW 89-769-NOV. 6, 1966 
1319 
replacenieiiiof the acadfJiiic facilities destroyed or seiioiisly daiiia.i>ed 
as a result of the disaster. 
"(b) In addition to and apart froni the assistance provided to a 
public histitution of higher education under subsection (a), the Com-
missioner may provide funds to such institution in an amount which he 
considers necessary to replace equipment, maintenance supplies, and 
instructional supplies (including books, and curricular and program 
materials) destroyed or seriously damaged as a result of the disaster, 
or to lease or otherwise provide (other than by acquisition of land or 
construction of academic facilities) such facilities needed to replace 
temporarily those academic facilities which have been made iniavail-
able as a result of the disaster, or both. 
"(c) In any case deemed appropriate by the Connnissioner, disaster 
assistance provided under subsection (a) or (b) may be in the form 
of a repayable advance subject to such terms and conditions as he 
considers to be in the public interest. 
"(d) There are hereby authorized to be appropriated for eacli fiscal 
year such amounts as may be necessary to carry out the provisions of 
this section. 
"(e) No payment may be made to a public institution of higher 
education for academic facilities under subsection (a) or for assist-
ance under subsection (b) unless an application therefor is submitted 
through the appropriate State commission and is tiled with the Com-
missioner in accordance with regulations prescribed by him. 
In 
determining the order in w^hich such applications shall be approved, 
the Commissioner shall consider the relative educational and financial 
needs of the institutions which have submitted approvable applica-
tions. 
No payment may be made under subsection (a) unless the 
Commissioner finds, after consultation w^ith the State commission, 
that the project or projects with respect to which it is made are not 
inconsistent w4th overall State plans, submitted under section 105(a), 
^ us^c'yfs^" 
for the construction of academic facilities. 
All determinations made 
by the Commissioner under this section shall be made only after con-
sultation with the appropriate State commission. 
"(f) Amounts paid by the Commissioner to a public institution of 
higher education under subsection (a) or (b) may be paid in advance 
or by w^ay of reimbursement and in such installments as the Commis-
sioner may determine. 
Any funds paid to an institution which are 
not expended or otherwise used for the purposes for which paid shall 
l)e repaid to the Treasury of the United States. 
"(g) For the purposes of this section an institution of higher edu-
cation is deemed to be a 'public institution of higher education' if the 
institution is under public supervision and control." 
(b) Section 7 of the Small Business Act, as amended (15 IT.S.C. 
636), is amended by adding thereto the following new subsection: 
^^^^^^^^'jr'' 
"(e) In the administration of the disaster loan program under sub-
section (b) (1) of this section, in the case of property loss or damage 
as a result of a disaster which is a 'major disaster' as defined in sec-
lion 2(a) of the Act of September 30,1950 (42 U.S.C. 1855a(a)), the 
^^ ^'^'' ^^°^' 
Small Business Administration, to the extent such loss or damage is 
not compensated for by insurance or otherwise, may lend to a privately 
ow^ned college or university without regard to whether the required 
financial assistance is otherwise available from private sources, and 
may waive interest payments and defer principal payments on such a 
loan for the first three years of the term of the loan."' 
69 Stat. 641. 
40 u s e 462. 
79 Stat. 490. 
42 u s e 3102. 
Ante, p. 1318. 
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PUBLIC LAW 89-769-NOV. 6, 1966 
[80 STAT. 
PRIORITY TO CERTAIN APPLICATIONS FOR PUBLIC FACILITY AND 
PUBLIC 
HOUSING ASSISTANCE 
SEC. 8. In the processing of applications for assistance— 
42 use U91- 
(1) under title I I of the Housing Amendments of 1955, or any 
1497. 
other Act providing assistance for the repair, construction, or 
extension oi public facilities; 
^2 us^c S . 
(2) under the United States Housing Act of 1937 for the pro-
vision of low-rent housing; 
(3) under section 702 of the Housing Act of 1954 for assistance 
in public works j)lanning; 
(4) under section 702 of the Housing and Urban Development 
Act of 1965 providing for grants for public facilities; or 
(5) under section 306 of the Consolidated Farmers Home 
Administration Act 
priority and immediate consideration shall be given, during such 
period as the President shall by proclamation prescribe, to applica-
tions from public bodies situated in major disaster areas. 
RESTORATION OF PUBLIC FACILITIES 
SEC. 9. There is hereby authorized to be appropriated such sums as 
may be necessary to reimburse not more than 50 per centum of eligible 
costs incurred to repair, restore, or reconstruct any project of a State, 
county, municipal, or other local government agency for flood control, 
navigation, irrigation, reclamation, public powder, sewage treatment, 
M^ater treatment, watershed development, or airport construction which 
was damaged or destroyed as a result of a major disaster, and of the 
resulting additional eligible costs incurred to complete any such facility 
which was in the process of construction when damaged or destroyed 
as a result of such major disaster. 
Eligible costs are defined to mean 
those costs determined by the Director of the Office of Emergency 
Planning as incurred or to be incurred in (1) restoring a public facility 
to substantially the same condition as existed pirior to the damage 
resulting from the major disaster, and (2) completing construction not 
performed prior to the major disaster to the extent the increase of such 
costs over original construction costs is attributable to changed con-
ditions resulting from the major disaster. 
Reimbursement under this 
section shall be made to the State, county, municipal, or other local 
governmental agency which is constructing the public facility or for 
which it is being constructed, except that if the economic burden of the 
eligible costs of repair, restoration, reconstruction or completion is 
incurred by an individual, partnership, corporation, agency, or other 
entity (other than an organization engaged in the business of insur-
ance), the State, county, municipality, or other local governmental 
agency shall reimburse such individual, partnership, corporation, 
agency, or other entity not to exceed 50 per centum of those costs. 
Eligible costs shall not include any costs for which reimbursement is 
received pursuant to insurance contracts or otherwise by the party 
incurring the economic burden of such costs. 
DUPLICATION OF BENEFITS 
SEC. 10. The head of each department or agency of the Federal 
government administering any program providing financial assistance 
to persons, business concerns, or other entities suffering losses as the 
result of a major disaster shall administer such program in a manner 
which will assure that no such person, concern, or other entity will 
receive such assistance with respect to any part of such loss as to which 
he has received financial assistance under any other such program. 
80 STAT.] 
PUBLIC LAW 89-769-NOV. 6, 1966 
1321 
EXTENSIONS OF TIME I N PUBLIC LAND 
MATTERS 
SEC. 11. The Secretary of the Interior, upon application therefor, 
is authorized to grant an extension of time to the holder of any lease, 
license, permit, contract or entry issued by him in connection with any 
lands administered by him through the Bureau of Land Management 
where the Secretary finds that a major disaster has impeded timely 
fulfillment of requirements and such relief will not prejudice the 
rights of another party. 
COORDINATION OF EFFORT 
SEC. 12. The President, acting through the Office of Emergency 
Planning, shall plan and coordinate all Federal programs providing 
assistance to persons, business concerns, or other entities suffering 
losses as the result of a major disaster, and shall conduct periodic 
reviews (at least annually) of the activities of State and Federal 
departments or agencies to assure maximum coordination of such pro-
grams, and to evaluate progress being made in the development of 
State and local organizations and plans to cope with major disasters. 
Nothing in this section shall be deemed to relieve the head of any 
department or agency of any function, duty, or responsibility vested 
in him by any provision of law. 
DISASTER A S S I S T A N C E STUDY 
SEC. 13. The Director of the Office of Emergency Planning is author-
ized and directed to make, in cooperation with the Secretary of Agri-
culture, the Secretary of the Interior, and other affected Federal and 
State agencies, a full and complete study and investigation for the 
purpose of determining w^hat additional or improved air operation 
facilities are needed to provide immediate effective action to prevent 
or minimize loss of publicly or privately owned property and per-
sonal injury or death which could result from forest fires or grass fires 
which are or threaten to become major disasters. The study and in-
vestigation shall include but not be limited to— 
(1) the need for new or improved airports, heliports, or heli-
spots at specific locations where present transportation facilities 
are inadequate to provide for immediate and effective action in 
case of forest fires or grass fires; 
(2) the need for additional or improved material, equipment 
(including aircraft) and personnel at specific locations to provide 
for immediate and effective action in case of forest fires or grass 
fires; and 
(3) the estimated cost of providing such new or improved air 
operation facilities (including additional or improved material, 
equipment, and personnel) at each specific location. 
Not later than six months after the enactment of this Act the Director ^.^.^P"";*.*" 
of the Office of Emergency Planning shall report the findings of the 
study and investigation to the Congress together with his recom-
mendations for an action program, including an equitable plan for 
the sharing of the cost of the program by the Federal, State and local 
governments and private persons and organizations. 
KFFECl'IVB DATFi 
SEC. 14. Tliis Act and the amendments made by this Act shall apply 
with respect to any major disaster occurring after October 3,19(14, 
Approved November 6, 1966. 
Congress.