An Act to provide for the establishment of a national urban growth policy, to encourage and support the proper growth and development of our States, metropolitan areas, cities, counties, and towns with emphasis upon new community and inner city development, to extend and amend laws relating to housing and urban development, and for other purposes.
PL 91-609 (H.R.19436), enacted 12/31/1970

83 Stat. 379. 
12 u s e 1715Z. 
12 u s e 171SZ-1. 
1770 
PUBLIC LAW 91^09-DEC. 31, 1970 
[84 STAT. 
Public Law 91-609 
December 31, 1970 
A N A C T 
—LH. R. 19436] 
rp^ provide for the establishment of a national urban growth policy, to encour-
age and support the proper growth and development of our States, metro-
politan areas, cities, counties, and towns with emphasis upon new community 
and inner city development, to extend and amend laws relating to housing and 
urban development, and for other purposes. 
Be it enacted by the Senate and House of Representatives 
of the 
Housing and 
United States of America in Congress assembled^ That this Act may 
ActTf 1970.°^"^" he cited as the "Housing and Urban Development Act of 1970''. 
T I T L E I—MORTGAGE CREDIT 
EXTENSION o r 
PROGRAMS 
Ante, p. 1384. 
gj,(. ]^oi. (a) Section 2(a) of the National Housing Act is amended 
by striking out "January 1,1971" in the first sentence and inserting in 
lieu thereof "October 1, 1972". 
(b) Section 217 of such Act is amended by striking out "January 1, 
1971" and inserting in lieu thereof "October 1, 1972". 
(c) Section 221(f) of such Act is amended by striking out "Janu-
ary 1, 1971" in the fifth sentence and inserting in lieu thereof "Octo-
ber 1,1972". 
(d) Section 235(m) of such Act is amended by striking out "Octo-
ber 1, 1971" and inserting in lieu thereof "October 1, 1972". 
(e) Section 236 (n) of such Act is amended by striking out "Octo-
ber 1, 1971" and inserting in lieu thereof "October 1, 1972". 
(f) Section 809(f) of such Act is amended by striking out "Janu-
ary 1,1971" in the second sentence and inserting in lieu thereof "Octo-
ber 1,1972". 
(g) Section 810 (k) of such Act is amended by striking out "Janu-
ary 1,1971" in the second sentence and inserting in lieu thereof "Octo-
ber 1,1972". 
(h) Section 1002(a) of such Act is amended by striking out "Janu-
ary 1,1971" in the second sentence and inserting in lieu thereof "Octo-
ber 1,1972". 
(i) Section 1101(a) of such Act is amended by striking out "Janu-
ary 1,1971" in the second sentence and inserting in lieu thereof "Octo-
ber 1,1972". 
AUTHORIZATION FOR ASSISTANCE PAYMENTS UNDER SECTIONS 23 5 AND 23(5 
SEC. 102, (a) The second sentence of section 235(h)(1) of the 
National Housing Act is amended— 
(1) by inserting "outstanding" before "contracts" the first 
place the term appears; and 
(2) by striking out "by $125,000,000 on July 1, 1970, and by 
$170,000,000 on July 1, 1971" and inserting in lieu thereof "by 
$150,000,000 on July 1,1970, and by $200,000,000 on July 1,1971''. 
(b) The second sentence of section 236(i)(l) of such Act is 
amended— 
(1) by inserting "outstanding" before "contracts" the first place 
the term appears; and 
(2) by striking out "by $125,000,000 on July 1, 1970, and by 
$170,000,000 on July 1, 1971" and inserting in lieu thereof "by 
$150,000,000 on July 1,1970, and by $200,000,000 on July 1,1971". 
82 Stat. 479; 
83 Stat. 381. 
84 STAT. ] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1771 
RENT SUPPLEMENT 
PAYMENTS 
SEC. 103. Section 101(a) of the Housing and Urban Development 
^2 stau s
o
^
3
^
.
^ 
Act of 1965 is amended by striking out "and by $100,000,000 on July 1, 
1970" and inserting in lieu thereof "by $100,000,000 on July 1, 1970, 
and by $40,000,000 on July 1,1971". 
78 Stat. 783. 
12 u s e 1735b. 
COMPENSATION FOR DEFECTS I N SECTION 23 5 EXISTING HOUSING 
SEC. 104. Section 518 of the National Housing Act is amended by 
redesignating subsection (b) as subsection (c) and inserting after 
subsection (a) a new subsection as follows: 
"(b) The Secretary is authorized to make expenditures to correct, 
or to compensate the owner for, structural or other defects which seri-
ously affect the use and livability of any single-family dwelling which 
is covered by a mortgage insured under section 235 of this Act and is 
more than one year old on the date of the issuance of the insurance com-
mitment, if (1) the owner requests assistance fi'om the Secretary not 
later than one year after the insurance of the mortgage, or, in the case 
of a dwelling covered by a mortgage which was insured prior to the date 
of enactment of this subsection, one year after the date of enactment of 
this subsection, and (2) the defect is one that existed on the date of 
the issuance of the insurance commitment and is one that a proper 
inspection could reasonably be expected to disclose. The Secretary may 
require from the seller of any such dwelling an agreement to reimburse 
him for any payments made pursuant to this subsection with resj^ect 
to such dwelling." 
USE OF EXISTING HOUSING UNDER SECTION 2 3 5 PROGRAM 
SEC. 105. Section 235(h) of the National Housing Act is amended— 
as^tau^su' 
(1) by striking out "July 1, 1971" in subparagraph (B) of 
12 use I7*I5J 
paragraph (3) and inserting in lieu thereof "July 1, 1972"; and 
(2) by adding at the end thereof the following new paragraph : 
"(4) At least 10 per centum of the total amount of contracts for 
assistance payments authorized by appropriation Acts to be made 
after June 30, 1971, shall be available for use only with respect to 
dwellings, or dwelling units in projects, which are approved by the 
Secretary prior to substantial rehabilitation." 
MORTGAGE INSURANCE UNDER SECTION 23 5 ( 1 ) FOR REHABILITATION 
OF DUPLEXES 
SEC. 106. Section 235(i)(3)(A) of the National Housing Act is 
amended by striking out "if the dwelling is purchased with the assist-
ance of a nonprofit organization and is" and inserting in lieu thereof 
"and which is". 
ASSISTANCE UNDER SECTION 23 5 PROGRAM FOR COOPERATIVE PROJECTS 
FINANCED UNDER CERTAIN STATE OR LOCAL PROGRAMS 
SEC. 107. Section 235(b) (2) of the National Housing Act is amended 
by inserting " ( A ) " after "the cooperative association of which the 
family is a member shall operate", and by inserting before the period 
at the end thereof the following: "; or (B) a housing project which is 
financed under a State or local program providing assistance through 
loans, loan insurance, or tax abatements, and which prior to completion 
of construction or rehabilitation is approved for receiving the benefits 
of this section". 
1772 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 STAT. 
82 Stat. 499. 
12 u s e 1715Z-1. 
"Mortgage in-
surance premium.' 
INCLUSION OF CERTAIN COSTS I N SECTION 2 3 (J PROJECTS 
SEC. 108. Section 236(b) of the National Housing Act is amended 
l)y adding- at the end thereof the following new sentence: "The term 
'mortgage insurance premium', when used in this section in relation 
to a project financed by a loan under a State or local program, means 
such fees and charges, approved by the Secretary, as are payable by 
the mortgagor to the State or local agency mortgagee to meet reserve 
requirements and administrative expenses of such agency.-' 
82 Stat. 599. 
12 u s e 17152-7. 
82 Stat. 600. 
12 u s e 17 15 c. 
MAXIMUM AMOUNT OF FHA-INSURED HOSPITAL MORTGAGE 
SEC. 109. Section 242(d)(2) of the National Housing Act is 
amended bv striking out "$25,000,000-' and inserting in lieu thereof 
'•$50,000,000''. 
MORTGAGE INSURANCE FOR PROPRIETARY HOSPITALS 
SEC. 110. (a) Section 242(b) (1) (C) of the National Housing Act 
is amended to read as follows: 
"(C) which is a proprietary facility, or facility of a private 
nonprofit corporation or association, licensed or regulated by the 
State (or, if there is no State law providing for such licensing or 
regulation by the State, by the municipality or other political sub-
division in which the facility is located) ; and". 
(b) The heading of section 242 of such Act is amended by striking 
out "NONPROFIT". 
(c) The sixth sentence of section 212(a) of such Act is amended by 
striking out "or association" and inserting in lieu thereof ", associa-
tion, or other organization". 
82 Stat. 508. 
12 u s e 17152-6. 
FHA SUPPLEMENTAL LOANS FOR MULTIFAMILY PROJECTS 
SEC. 111. Section 241 of the National Housing Act is amended— 
(1) by inserting "or covered by a mortgage held by the Secre-
tary" immediately after "this Act" in the first sentence of subsec-
tion (a) ; 
(2) by striking out the proviso in subsection (a) and inserting 
in lieu thereof the following: ": Provided., That a loan involving 
a nursing home or a group practice facility may also be made for 
the purpose of financing equipment to be used in the operation of 
such nursing home or facility"; 
(3) by inserting "or an amount acceptable to the Secretary"' 
before the semicolon at the end of subsection (b)(1) ; and 
(4) by inserting "or pursuant to w^hich the original mortgage 
covering the project or facility was insured'' before "; and" at the 
end of subsection (b) (5). 
70 Stat. 273. 
12 u s e 1748h-l. 
MORTGAGES FOR CIVILIAN PERSONNEL AT MILITARY INSTALLATIONS 
SEC. 112. Section 809(b) of the National Housing Act is amended by 
inserting before the period at the end of the second sentence the fol-
lowing: ": Provided., That the Secretary shall relieve the Secretary of 
Defense from any obligation to guarantee the General Insurance Fund 
from loss with respect to a mortgage assumed by a person ineligible to 
receive a certificate under subsection (a), if the original mortgagor is 
issued another certificate w^ith respect to a mortgage insured under this 
section on property which the Secretary determines is not an accept-
able risk". 
79 Stat. 470. 
12 use 1715k. 
12 u s e 1715J>1. 
84 STAT. ] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1773 
MOBILE HOME LOANS UNDER TITLE I 
SEC. 113. Section 2(b) of the National Housing Act is amended— 
^^ ^
*
^
*
* ^°^' 
(1) by inserting in clause (1) after "$10,000" the following: 
12 use 1
7
*
0
3
. 
"($15,000 in the case of a mobile home composed of two or more 
modules)"; and 
(2) by inserting in the proviso of clause (2) after "days" the 
following: "(fifteen years and thirty-two days in the case of a 
mobile home composed of two or more modules)". 
U S E O F C E R T A I N H O U S I N G F A C I L I T I E S U N D E R S E C T I O N 221 AND SECTION 2 36 
FOR CLASSROOM PURPOSES 
SEC. 114. (a) Section 221 (f) of the National Housing Act is amended go^stat^'ne^s^' 
by adding at the end of the second paragraph the following new sen- 
12 use 171*5/. 
tence: "In any case in which it is determined in accordance with 
regulations of the Secretary that facilities in existence or under con-
struction on the date of enactment of the Housing and Urban Develop-
ment Act of 1970 which could appropriately be used for classroom 
purposes are available in any such property or project and that public 
schools in the community are overcrowded due in part to the attendance 
at such schools of residents of the property or project, such facilities 
may be used for such purposes to the extent permitted in such regula-
tions (without being subject to any of the requirements of the proviso 
in section 220(d) (3) (B^ (iv) except the requirement that the project be 
predominantly residential)." 
(b) Section 236 (j) (5) of such Act is amended by adding at the end. 
^2 stau sou 
thei-eof (after and below subparagraph (C)) the following new 
sentence: 
"In any case in which it is determined in accordance with regulations 
of the Secretary that facilities in existence or under construction 
on the date of enactment of the Housing and Urban Development 
Act of 1970 which could appropriately be used for classroom purposes 
are available in any such property or project and that public schools in 
the community are overcrowded due m part to the attendance at such 
schools or residents of the property or project, such facilities may be 
used for such purposes to the extent permitted in such regulations 
(without being subject to any of the requirements of the first proviso 
in subparagraph (A) except the requirement that the project be pre-
dominantly residential)." 
CONGREGATE HOUSING FOR THE DISPLACED, ELDERLY, AND HANDICAPPED 
SEC. 114. (a) (1) Section 221(f) of the National Housing Act is 
amended by inserting before the period at the end of the first sentence 
of the second paragraph of the following: ": Provided, That such 
units, in the case of a project designed primarily for occupancy by 
displaced, elderly, or handicapped families, need not, with the ap-
proval of the Secretary, contain kitchen facilitieSj and such projects 
may include central dining and other shared facilities." 
(2) Section 221(f) of such Act is further amended— 
(A) by inserting "or who is a displaced person," immediately 
after "Housing Act of 1959," in the fifth sentence of the second 
paragraph; and 
(B) by striking out "the terms 'displaced family' and 'dis-
placed families' shall mean a family or families" in the third 
paragraph and inserting in lieu thereof "the terms 'displaced 
family', 'displaced families', and 'displaced person' shall mean a 
family or families, or a person,". 
1774 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 STAT. 
82 Stat. 501. 
12 u s e 1715Z-1. 
451: 
79 Stat. 
82 Stat. 503. 
12 u s e 1701s. 
(b) (1) Section 236(j) (5) (B) of such Act is amended by inserting 
immediately after "units" the following: ", but such units, in the case 
of a project designed primarily for occupancy by displaced, elderly, or 
handicapped families, need not, with the approval of the Secretary, 
contain kitchen facilities'*. 
(2) Section 236(i) of such Act is amended by adding at the end 
thereof the following new paragraph: 
"(3) Not more than 10 per centum of the total amount of interest 
reduction payments authorized to be contracted to be made pursuant 
to appropriation Acts as provided in paragraph (1) after the date 
of the enactment of the Housing and Urban Development Act of 1970 
shall be contracted to be made with respect to projects in which all or 
part of the dwelling units do not contain kitchen facilities." 
(c) Section 101(b) of the Housing and Urban Development Act 
of 1965 is amended by adding at the end thereof the following new-
sentence: "Nothing in this section shall be construed as preventing 
payments to a housing owner with respect to projects in which all or 
part of the dwelling units do not contain kitchen facilities; but of 
the total amount of contracts to make annual payments approved in 
appropriation Acts pursuant to subsection (a) after the date of the 
enactment of the Housing and L^rban Development Act of 1970, not 
more than 10 per centum in the aggregate shall be made with respect 
to such projects.--
12 u s e 1731a. 
FHA REHABILITATION STANDARDS FOR HOUSING I N URBAN 
RENEWAL AREAS 
SEC. 116. Title V of the National Housing Act is amended by adding 
at the end thereof the following new section: 
12 u s e 1707. 
" F H A REHABILITATION STANDARDS FOR HOUSING I N URBAN 
R E N E W A L 
AREAS 
"SEC. 524. In determining whether properties should be approved 
by the Secretary prior to rehabilitation and covered by mortgages 
insured under title II of this Act, the Secretary shall apply uniform 
property standards as between properties located outside urban 
renewal areas and those located within urban renewal areas." 
52 Stat. 16. 
12 u s e 1712. 
79 Stat. 469; 
;2 Stat. 610. 
12 u s e 1715e. 
INVESTMENT OF FHA RESERVE FUNDS 
SEC. 117. (a) Section 206 of the National Housing Act is amended 
by inserting before the period at the end of the first sentence the 
following: "or any agency of the United States: Provided, That such 
moneys shall to the maximum extent feasible be invested in such bonds 
or other obligations the proceeds of wdiich will be used to directly 
support the residential mortgage market". 
(b) Section 213(o) of such Act is amended by inserting before the 
period at the end of the second sentence the following: "or any agency 
of the United States: Provided^ That such moneys shall to the maxi-
mum extent feasible be invested in such bonds or other obligations the 
proceeds of which will be used to directly support the residential mort-
gage market". 
(c) Section 236(g) of such Act is amended by inserting before the 
period at the end of the third sentence the following: "or any agency 
of the United States: Provided^ That such moneys shall to the maxi-
mum extent feasible be invested in such bonds or other obligations the 
proceeds of which will be used to directly support the residential 
mortgage market". 
84 STAT. ] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1775 
82 Stat. 487. 
12 u s e 17152-3. 
79 Stat. 471. 
12 u s e 173SC. 
(d) Section 238(b) of such Act is amended by inserting before the 
period at the end of the sixth sentence the following: "or any agency 
of the United States: Provided^ That such moneys shall to the maxi-
mum extent feasible be invested in such bonds or other obligations the 
proceeds of which will be used to directly support the residential 
mortgage market". 
(e) Section 519(c) of such Act is amended by inserting before the 
period at the end of the first sentence the following: "or any agencj 
of the United States: Provided^ That such moneys shall to tne maxi-
mum extent feasible be invested in such bonds or other obligations the 
proceeds of which will be used to directly support the residential 
mortgage market". 
ASSISTANCE UNDER SECTION 23 6 AND RENT SUPPLEMENT PROGRAMS FOR 
EXISTING 
PROJECTS 
FINANCED 
UNDER 
CERTAIN 
STATE 
OR 
LOCAL 
PROGRAMS 
SEC. 118. (a) Section 236(b) of the National Housing Act is 
^n'e. p. 1772. 
amended by striking out "which prior to completion of construction 
or rehabilitation is approved for receiving the benefits of this section" 
and inserting in lieu thereof the following: "which may involve either 
new or existing construction and which is approved for receiving the 
benefits of this section". 
(b) The second sentence of section 101 (b) of the Housing and Urban 
Development Act of 1965 is amended by striking out "which prior to 
82 stat. 503. 
completion of construction or rehabilitation is approved for receiving 
^^ ^^^ 1701 s. 
the benefits of this section" and inserting in lieu thereof the following: 
"which may involve either new or existing construction and which is 
approved for receiving the benefits of this section". 
LAND DEVELOPMENT 
PLANNING 
SEO. 119. Section 1003(b)(3) of the National Housing Act is 
Jsulcmgcc 
amended by inserting before the period at the end thereof the follow-
ing : "; except that, in the case of land development covered by a mort-
gage with respect to which an insurance commitment is issued under 
this title before the expiration of one year after the date of enactment 
of the Housing and Urban Development Act of 1970, the requirement 
of this paragraph shall be applicable only if there is actually in exist-
ence on the date the commitment is issued a comprehensive plan 
which covers, or comprehensive planning being carried on for, the area 
in which the land is situated". 
OCCUPANCY PREFERENCE I N F H A RENTAL HOUSING FOR MILITARY 
PERSONNEL 
SEC 120. (a) Section 101(c) (2) of the Housing and Urban Devel- 
79 stat. 451. 
opment Act of 1965 is amended by (1) striking out the word "or" 
between paragraphs (D) and (E), (2) striking out the period at the 
end of paragraph (E) and inserting in lieu thereof "; or", and (.3) 
adding after paragraph (E) the following: 
"(F) a family whose head, or spouse, is a member of the Armed 
Forces of the United States who is serving on active duty." 
(b) Paragraph (B) of section 101(e)(1) of such Act is amended 
by striking out the period and inserting in lieu thereof the following: 
"or is a member of the Armed Forces of the United States serving on 
active duty." 
(c) Section 7 of the Department of Housing and Urban Develop-
ment Act (as amended by section 905 of this Act) is amended by 
^^f ^544^^' 
adding at the end thereof the following new subsection: 
^^42 use 35*35.. 
1776 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 STAT. 
*'(m) Whenever he shall determine that, because of location or 
other considerations, any rental housing project assisted under title I I 
1
2 u*^c' 1
^
*
0
7 
^^ *^^^ National Housing Act or title I of the Housing and Urban 
79 Stat. 451.' 
Development Act of 1965 could ordinarily be expected substantially 
1
2 use 1701s. 
to serve the family housing needs of lower income military personnel 
serving on active duty, the Secretary is authorized to provide for or 
approve such preference or priority of occupancy of such project by 
such military personnel as he shall determine is appropriate to assure 
that the project will serve their needs on a continuing basis not with-
standing the frequency with which individual members of such per-
sonnel may be transferred or reassigned to new duty stations." 
STATE FUNDING OF SECTION 23 6 INTEREST REDUCTION 
PAYMENTS 
82 Stat. 498; 
SEC. 121. (a) Sectlou 236 of the National Housing Act is amended 
^^Tusc^msz-i. ^y adding at the end thereof the following new subsection: 
"(n) The Secretary is authorized to enter into agreements with any 
State or agency thereof under which such State or agency thereof 
contracts to make interest reduction payments, subject to all the terms 
and conditions specified in this section and in rules, regulations and 
procedures adopted by the Secretary under this section, with respect 
to all or a part of a project covered oy a mortgage insured under this 
section. Any funds provided by a State or agency thereof for the 
purpose of making interest reduction payments shall be administered, 
disbursed and accounted for by the Secretary in accordance with the 
agreements entered into by the Secretary with the State or agency 
thereof and for such fees as shall be specified therein. Before entering 
into any agreements pursuant to this subsection the Secretary shall 
require assurances satisfactory to him that the State or agency thereof 
is able to provide sufficient funds for the making of interest reduction 
payments for the full period specified in the interest reduction 
contract." 
(b) The first sentence of section 236(i) (1) of such Act is amended 
by inserting "by the Secretary" immediately following "entered into". 
TITLE II—URBAN RENEWAL AND HOUSING 
ASSISTANCE PROGRAMS 
URBAN RENEWAL GRANT AUTHORITY 
63 Stat. 416; 
SEC. 201. Sectiou 103(b) of the Housing Act of 1949 is amended— 
^'4^usc''i453. 
(1) by striking out "and by $1,700,000,000 on July 1,1970" in 
the first sentence and inserting in lieu thereof "by $1,700,000,000 
on July 1, 1970, and by $1,500,000,000 on July 1, 1971"; and 
(2) by striking out "beginning July 1,1969, and July 1,1970" 
in the second sentence and inserting in lieu thereof "commencing 
after June 30,1969 and ending prior to July 1, 1974". 
PUBLIC HOUSING A N N U A L CONTRIBUTIONS 
SEC. 202. The first sentence of section 10(e) of the United States 
83 Stat. 388. 
Housing Act of 1937 is amended by striking out "and $170,000,000 on 
use 1410. 
j ^ j y ^^ ^g^Q„ ^^^ inserting in lieu thereof "$320,000,000 on J u l y 1, 
1970, and $225,000,000 on July 1,1971". 
84 STAT. ] 
PUBLIC LAW 91^09-DEC. 31, 1970 
1777 
USE OF PUBLIC HOUSING CONTRACT AUTHORITY FOR LOW-RENT HOUSING I N 
PRIVATE ACCOMMODATIONS 
SEC. 203. The first sentence of section 10(e) of the United States 
Housing Act of 1937 is amended by striking out '"'•Provided further''' 
and inserting in lieu thereof '•'•Provided further^ That at least 30 per 
centum of the total amount of contracts for annual contributions 
entered into in any fiscal year pursuant to the new authority granted 
under section 202 of the Housing and Urban Development Act of 
1970 or under any law subsequently enacted shall be entered into with 
respect to units of low-rent housing in private accommodations pro-
vided under section 23: And provided 
further''\ 
52 Stat. 820; 
79 Stat. 487. 
42 u s e 1410. 
TERM AND RENEWAL OF CONTRACTS FOR LOW-RENT HOUSING I N PRIVATE 
ACCOMMODATIONS 
SEC. 204. (a)(1) Section 23(a)(3) of the United States Housing 
Act of 1937 is amended by striking out "an existing" and inserting in 
lieu thereof "a". 
(2) Section 10(c) of such Act is amended by striking out "existing" 
in the last proviso. 
(b) The last sentence of section 23(d) of such Act is amended— 
(1) by striking out "not less than twelve months nor more than 
sixty months" and inserting in lieu thereof "not less than twelve 
months nor more than one hundred and twenty months"; and 
(2) by inserting before the period at the end thereof the fol-
lowing: ": Provided^ That no renewal of such a contract shall 
result in a total term exceeding two hundred and forty months 
(or one hundred and eighty months in the case of an existing 
structure)". 
79 Stat. 455. 
42 u s e 1421b. 
50 Stat. 892; 
79 Stat. 487. 
82 Stat. 505. 
AUTHORIZATION FOR COLLEGE HOUSING DEBT SERVICE GRANTS 
SEC. 205. Section 401 (f) (2) of the Housing Act of 1950 is amended 
^^^fj^*- ^°^' 
by inserting before the period at the end thereof the following: ", and 
12 us'c 1749. 
by $12,000,000 on July 1,1971". 
E X P E N S E S I N CONNECTION W I T H T H E SALE OF SURPLUS FEDERAL LANDS 
TO LOCAL URBAN RENEWAL AGENCIES 
SEC. 206. The last sentence of section 108 of the Housing Act of 
1949 is amended by inserting "net" immediately before "proceeds". 
CONGREGATE HOUSING FOR T H E DISPLACED, ELDERLY, AND HANDICAPPED 
SEC. 207. Section 15 of the United States Housing Act of 1937 is 
amended by adding at the end thereof a new paragraph as follows: 
"(12) The Secretary shall encourage public housing agencies, in 
providing housing predominantly for displaced, elderly, or handi-
capped families, to design, develop, or otherwise acquire such housing 
to meet the special needs of the occupants and, wherever practicable, 
for use in whole or in part as congregate housing: Provided, That not 
more than 10 per centum of the total amount of contracts for annual 
contributions entered into in any fiscal year pursuant to the new 
authority granted under section 202 of the Housing and Urban Devel-
opment Act of 1970 or under any law subsequently enacted shall be 
entered into with respect to units in congregate housing. As used in this 
paragraph, the term 'congregate housing' means low-rent housing 
(A) in v/hich some or all of the dwelling units do not have kitchen 
facilities, and (B) connected with which there is a central dining 
facility to provide wholesome and economical meals for elderly families 
63 Stat. 419. 
42 u s e 1458. 
50 Stat. 895; 
82 Stat. 504. 
42 u s e 1415. 
"eongregate 
housing." 
1778 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 STAT. 
under terms and conditions prescribed b}^ the public liousing agency 
to permit a generally self-supporting operation. Expenditures incurred 
by a public agency in the operation of a central dining facility in 
connection with congregate housing (other than the cost of providing 
food and service) shall be considered one of the costs of administration 
of the project." 
PUBLIC HOUSING RENT REQUIREMENTS 
SEC. 208. (a) Section 2(1) of the United States Housing Act of 
73 Stat. 680; 
1937 is amended by adding at the end of the second paragraph the 
^^^u^^sc^14*02. 
following: "In defining income for purposes of applying the one-
fourth of family income limitation set forth above, the Secretary shall 
consider income from all sources of each member of the family resid-
ing in the household who is at least eighteen years of age; except that 
(A) nonrecurring income, as determined by the Secretary, and the 
income of full-time students shall be excluded; (B) an amount equal 
to the sum of (i) $300 for each dependent, (ii) $300 for each second-
ary wage earner, (iii) 5 per centum of the family's gross income (10 
per centum in the case of elderly families), and (iv) those medical 
expenses of the family properly considered extraordinary shall be 
deducted; and (C) the Secretary may allow further deductions in 
recognition of unusual circumstances." 
Effective date. 
(b) The iucome definition contained in the last sentence of the sec-
ond paragraph of section 2(1) of the Housing Act of 1937, as added 
by subsection (a) of this section, shall be effective at the first annual 
reexamination of the tenant's income subsequent to March 24, 1971. 
PUBLIC HOUSIN(; COST LIMITS 
SEC. 209. (a) The first sentence of section 15(5) of the United States 
63 Stat. 424; 
Housiug Act of 1937 is amended by striking out all that follows 
83 Stat! 389! 
"based" and inserting in lieu thereof the following: "shall not exceed 
42 use 1415. 
by more than 10 per centum the appropriate prototype cost for the 
area. Prototype costs shall be determined at least annually by the 
Secretary on the basis of his estimate of the construction and equip-
ment costs of new dwelling units of various sizes and types in the area 
suitable for occupancy by pei-sons assisted under this Act. The Sec-
retary in determining the area's prototype costs shall take into account 
the extra durability required for economical maintenance of assisted 
housing, and the provision of amenities designed to guarantee safe 
and healthy family life and neighborhood environment. Futher, in 
developing such prototypes, emphasis should be given to encouraging 
good design as an essential component of such housing and to pro-
ducing housing which will be of such quality as to reflect the archi-
pubiication in 
tectural standards of the neighborhood and community. The protoype 
Federal Register. pQg^g ^QJ. .^j^y ^^j-gj^ shall becoiiie etfcctive upon the date of publication 
in the Federal Register." 
Effective date. 
(^]^^ This sectloii becouies effecti^'e on such date as the Secretary of 
Housing and Urban Development prescribes, but not later than one 
hundred and twenty days following the date of enactment of this Act. 
AMENDMENT OF CONTRACTS TO ASSURE LOW-RENT CIIARACIT.R OF PROJECTS 
SEC. 210. The third sentence of section 10(a) of the United States 
63 stat^.^430; 
Housing Act of 1937 is amended by striking out the period and insert-
ing in lieu thereof the following: ": Provided 
further, 
That the 
Authority is authorized to amend or supersede annual contributions 
contracts to provide payments annually (within the limitations pre-
scribed by this Act) which the Authority determines are required (1) 
to assure the low-rent character of the projects involved, and (2) to 
82 Stat. 505 
42 u s e 1410. 
84 STAT. ] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1779 
achieve and maintain adequate operating and maintenance services and 
reserve funds including payment of outstanding debts." 
POLICy 
STATEMENT 
SEC. 211. Section 1 of the United States Housing Act of 1937 is 
so stat. sss; 
amended by adding at the end thereof the following: "It is the sense ^^4fuse^1401. 
of the Congress that no person should be barred from serving on the 
board of directors or similar governing body of a local public housing 
agency because of his tenancy in a low-rent housing project." 
RELOCATION PAYMENTS 
SEC. 212. (a) Section 114(b)(1) of the Housing Act of 1949 is 
78 stat. 788. 
amended by inserting before the semicolon the following: ": Provided 
'^^ ^^^ ^'^^^' 
further, That the Secretary may authorize payment to displaced busi-
ness concerns of fixed amounts in lieu of their total certified actual 
moving expenses where he determines that it is impractical for a dis-
placed business concern to calculate the amount of such expenses". 
(b) The last sentence of section 114(b) of such Act is amended by 
striking out "certified actual". 
EARLY CLOSEOUT OF URBAN RENEWAL PROJECTS 
SEC. 213. (a) Section 106(i) of the Housing Act of 1949 is amended 
82 stat. 522. 
to read as follows: 
"
^
^ "^'^ ^'*^^* 
"(i) Upon determination of the Secretary that the local public 
agency does not expect to be able in the reasonably near future, due 
to circumstances beyond its control, to dispose of urban renewal proj-
ect land acquired in accordance with the urban renewal plan and that 
all other project activities are completed except local grant-in-aid 
activities designated in the third proviso to section 110(d) under the 
conditions specified therein, and that a closeout of the urban renewal 
project pursuant to this subsection would be in the financial interest 
of the Federal Government, the urban renewal project may be deemed 
completed, net project cost may be computed, and the capital grant 
paid. To facilitate these actions, the Secretary may pay to the local 
public agency a grant, in addition to the capital grant otherwise pay-
able, equal to one-third (or one-fourth in the case of projects funded 
on the three-fourths capital grant basis) of the estimated disposition 
proceeds of such land as accepted by the Secretary. No local grant-in-
aid shall be required on account of this additional grant. The approval 
of the Secretary shall be obtained prior to the disposition of such 
land by the local public agency and net proceeds realized from the 
disposition of such land after project closeout shall be paid to the 
Secretary by the local public agency." 
(b) Section 110(f) of such Act is amended by striking out "or for 
42 use i46o. 
subsequent disposition or retention as provided under section 106 (i)". 
RELEASE FROM CERTAIN PROJECT OBLIGATIONS 
SEC. 214. Notwithstanding any other provision of this Act or title 
I of the Housing Act of 1949, as amended, the Secretary of Housing 
63 stat. 414; 
and Urban Development is authorized and directed to release the City H stat! sis! 
of Stanton, Texas, and the Urban Kenewal Agency of the City of 
42 use 1450. 
Stanton, Texas, from the obligations of their agreement with the 
Department of Housing and Urban Development entered into in con-
nection with the closeout of projects numbered Tex. E-45 and Tex. 
47-348 O - 72 - 29 (Pt. 2) 
1780 
PUBLIC LAW 91^09-DEC. 31, 1970 
[84 STAT. 
68 Stat. 622. 
42 u s e 1450. 
R-81 and to close out those projects, effective as of the original date of 
closeout, on the basis of the authority granted under section 213 of 
this Act. 
URBAN RENEWAL PROJECT I N MONROE, WISCONSIN 
SEC. 215. Notwithstanding the date of commencement of construc-
tion of streets and highways in the tornado urban renewal area in 
Monroe, Wisconsin, local expenditures made in connection therewith 
shall, to the extent otherwise eligible, be counted as a local grant-in-
aid to the tornado urban renewal project (Wisconsin R-27) in accord-
ance with the provisions of title I of the Housing Act of 1949. 
TITLE III—MODEL CITIES AND METROPOLITAN 
DEVELOPMENT PROGRAMS 
80 Stat. 1260; 
83 Stat. 391. 
42 u s e 3311. 
AUTHORIZATION FOR MODEL CITIES PROGRAM 
SEC. 301. (a) Section 111(b) of the Demonstration Cities and Met-
ropolitan Development Act of 1966 is amended— 
(1) by striking out "and" thie third time it appears; and 
(2) by inserting before the period at the end thereof the fol-
lowing : ", and not to exceed $200,000,000 for the fiscal year end-
ing June 30,1972". 
(b) Section 111(c) of such Act is amended by striking out "1971" 
and inserting in lieu thereof "1972". 
(c) Section 111 of such Act is further amended by striking out 
"and administrative expenses" each place it appears. 
82 Stat. 5 29; 
83 Stat. 391. 
40 u s e 461. 
AUTHORIZATION FOR COMPREHENSIVE! PLANNING GRANTS 
SEC. 302. The fifth sentence of section 701(b) of the Housing Act 
of 1954 is amended by striking out "and not to exceed $390,000,000 
prior to July 1,1971" and inserting in lieu thereof "and not to exceed 
$420,000,000 prior to July 1,1972". 
82 Stat. 516. 
42 u s e 3906. 
83 Stat. 391. 
42 u s e 3911. 
42 u s e 3907. 
N E W COMMUNITY LAND DEVELOPMENT 
SEC. 303. (a) Section 407(d) of the Housing and Urban Develop-
ment Act of 19'68 is amended by striking out "$250,000,000" and insert-
ing in lieu thereof "$500,000,000". 
(b) Section 412 (d) of such Act is amended by striking out "July 1, 
1971" and inserting in lieu thereof "July 1,1974". 
(c) Section 408 of such Act is amended— 
(1) by striking out "qualified"; and 
(2) by striking out all that follows "guaranteed obligation" 
and inserting in lieu thereof a period. 
COMMUNITY 
F A C I L I T I E S 
GRANTS 
SEC. 304. (a) Section 708(a) of the Housing and Urban Develop-
Ante, p. 886. 
meut Act of 1965 is amended by adding at the end thereof the follow-
ing new sentence: "In addition, there is authorized to be appropriated 
for the fiscal year commencing July 1,1971, not to exceed $50,000,000 
for grants under section 703." 
(b) Section 708(b) of such Act is amended by striking out "1971" 
and inserting in lieu thereof "1972". 
84 STAT. ] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1781 
EXTENSION OF URBAN INFORMATION AND TECHNICAL 
ASSISTANCE SERVICES AUTHORIZATION 
SEC. 305. Section 906 of the Demonstration Cities and Metropolitan 
Development Act of 1966 is amended by striking out "July 1, 1971" 
^3 stat^-394^.^ 
and inserting in lieu thereof "July 1,1972''. 
TITLE 
lY—CONSOLIDATION 
OF 
OPEN-SPACE 
LAND 
PKOGKAMS 
SEC. 401. Effective July 1, 1971, title VII of the Housing Act of 
Effective date. 
1961 is amended to read as follows: 
^s stat. iss. 
42 u s e 1500. 
"TITLE VII—OPEN-SPACE LAND 
" F I N D I N G S AND PURPOSE 
"SEC. 701. (a) The Congress finds that the rapid expansion of the 
Nation's urban areas and the rapid growth of population within such 
areas has resulted in severe problems of urban and suburban living 
for the preponderant majority of the Nation's present and future pop-
ulation, including the lack of valuable open-space land for recrea-
tional and other purposes. 
"(b) The Congress further finds that there is a need for the addi-
tional provision of parks and other open space in the built-up portions 
of urban areas especially in low income neighborhoods and commu-
nities and a need for greater and better coordinated State and local 
efforts to make available and improve open-space land throughout 
entire urban areas. 
"(c) The Congress further finds that there is a need for timely 
action to preserve and restore areas, sites, and structures of historic 
or achitectural value in order that these remaining evidences of our 
history and heritage shall not be lost or destroyed through the 
expansion and development of the Nation's urban areas. 
"(d) It is the purpose of this title to help curb urban sprawl and 
prevent the spread of urban blight and deterioration, to encourage 
more economic and desirable urban development, to assist in preserv-
ing areas and properties of historic or architectural value, and to 
help provide necessary recreational, conservation, and scenic areas by 
assisting State and local public bodies in taking prompt action to (1) 
provide, preserve, and develop open-space land in a manner consistent 
with the planned long-range development of the Nation's urban areas, 
(2) acquire, improve, and restore areas, sites, and structures of his-
toric or architectural vahie, and (3) develop and improve open space 
and other public urban land, in accordance with programs to encourage 
and coordinate local public and private efforts toward this end. 
" G R A N T S FOR A C Q U I S I T I O N AND FOR DEVELOPMENT OF OPEN-SPACE LAND 
"SEC. 702. (a) The Secretary is authorized to make grants to States 
and local public bodies to help finance (1) the acquisition of title to, 
or other interest in, open-space land in urban areas and (2) the 
development of open-space or other land in urban areas for open-space 
uses. The amount of any such grant shall not exceed 50 per centum of 
the eligible project cost, as approved by the Secretary, of such acqui-
sition or development. Not more than 50 per centum of the non-Federal 
share of such eligible project cost may, to the extent authorized in reg-
ulations established by the Secretary, be made up by donations of 
land or materials. 
1782 
Prohibitions. 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 STAT. 
Technical 
assistance. 
"(b) Xo grants under this title shall be made to (1) defray ordinary 
State or local governmental expenses, (2) help finance the acquisition 
by a public body of land located outside the urban area for which it 
exercises (or participates in the exercise of) responsibilities consistent 
with the purpose of this title, (3) acquire and clear developed land in 
built-up urban areas unless the local governing body determines that 
adequate open-space land cannot be effectively provided through the 
use of existing undeveloped land, or (4) provide assistance for historic 
and architectural preservation purposes, except for districts, sites, 
buildings, structures, and objects which the Secretary of the Interior 
determines meet the criteria used in establishing the National 
Register. 
"(c) The Secretary may set such further terms and conditions for 
assistance under this title as he determines to be desirable. 
"(d) The Secretary shall consult with the Secretary of the Interior 
on the general policies to be followed in reviewing applications for 
grants under this title. To assist the Secretary in such review, the Sec-
retary of the Interior shall furnish him (1) appropriate information 
on the status of national and statewide recreation and historic preser-
vation planning as it affects the areas to be assisted with such grants, 
and (2) the current listing of any districts, sites, buildings, structures, 
and objects significant in American history, architecture, archeology, 
and culture which may be contained on a National Register main-
tained by the Secretary of the Interior pursuant to other provisions 
of law. The Secretary shall provide current information to the Sec-
retary of the Interior from time to time on significant program 
developments. 
"(e) The Secretary may provide such technical assistance to States 
and locjil public bodies as may be required to effectively carry out 
activities under this section, 
"PLANNING REQUIREMENTS 
"SEC. 703. The Secretary shall make grants under section 702 only 
if he finds that such assistance is needed for carrying out a unified or 
officially coordinated program, meeting criteria established by him, 
for the provision and development of open-space land which is a part 
of, or is consistent with, the comprehensively planned development 
of the urban area. 
"CONVERSIONS TO OTHER USES 
"SEC. 704. No open-space land for the acquisition of which a grant 
has been made under section 702 shall be converted to uses not origi-
nally approved by the Secretary without his prior approval. Prior 
approval will be granted only upon satisfactory compliance with regu-
lations established by the Secretary. Such regulations shall require 
findings that (1) there is adequate assurance of the sub",titution 
of other open-space land of as nearly as feasible equivalent useful-
ness, location, and fair market value at the time of the conversion; 
(2) the conversion and substitution are needed for orderly growth 
and development; and (3) the proposed uses of the converted and 
substituted land are in accord with the then applicable comprehensive 
plan for the urban area, meeting criteria established by the Secretary. 
"CONVERSIONS OF LAND INVOLVING HISTORIC OR ARCHITECTURAL PURPOSES 
"SEC. 705. No open-space land involving historic or architectural 
purposes for which assistance has been granted under this title shall 
be converted to use for any other purpose without the prior approval 
of the Secretary of the Interior. 
84 STAT. ] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1783 
"ACQUISITION or INTERESTS TO GUIDE URBAN DEVELOPMENT 
"SEC. 706. In order to encourage the acquisition of interests in 
undeveloped or predominantly undeveloped land which, if withheld 
from commercial, industrial, and residential development, would have 
special significance in helping to shape economic and desirable pat-
terns of urban growth (including growth outside of existing urban 
areas which is directly related to the development of new com-
munities or the expansion and revitalization of existing communities), 
the Secretary may make grants to State and local public bodies for 
the acquisition oi such interests in an amount not to exceed 75 per 
centum of the cost of such acquisition. In the case of any interests 
acquired pursuant to this section, the Secretary may approve the sub-
sequent conversion or disposition of the land involved without regard 
to other requirements of this title but subject to such terms and condi-
tions as he determines equitable and appropriate with respect to the 
control of future use and the application or sharing of the proceeds 
or value realized upon sale or disposition. 
"LABOR STANDARDS 
"SEC. 707. (a) The Secretary shall take such action as may be neces-
sary to insure that all laborers and mechanics employed by contractors 
or subcontractors in the performance of construction work financed 
with the assistance of grants under this title shall be paid wages at rates 
not less than those prevailing on similar construction in the locality 
as deteiTnined by the Secretary of Labor in accordance with the Davis-
Bacon Act, as amended. The Secretary shall not approve any such 
grant without first obtaining adequate assurance that these labor stand-
ards will be maintained upon the construction work. 
"(b) The Secretary of Labor shall have, with respect to the labor 
standards specified in subsection (a), the authority and functions set 
forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 
Stat. 1267; 5 U.S.C. 133z-15), and section 2 of the Act of June 13, 
s use app. 
1934, as amended (48 Stat. 948; 40 U.S.C. 276c). 
" stat. los. 
49 Stat. 1011. 
40 use 276a. 
(( 
AUraORIZATION 
"SEC. 708. There are authorized to be appropriated for pi^rposes of 
making grants under this title not to exceed $560,000,000 prior to 
July 1, 1972. Any amounts appropriated under this section shall 
remain available until expended. 
"DEFINI-nONS 
"SEC. 709. As used in this title— 
" (1) The term 'open-space land' means any land located in an urban 
area which has value for (A) park and recreational purposes, (B) 
conservation of land and other natural resources, or (C) historic, 
architectural, or scenic purposes. 
"(2) The term 'urban area' means any area which is urban in 
character, including those surrounding areas which, in the judgment of 
the Secretary, form an economic and socially related region, taking 
into consideration such factors as present and future population 
trends and patterns of urban growth, location of transportation 
facilities and systems, and distribution of industrial, commercial, 
residential, governmental, institutional, and other activities. 
" (3) The term 'State' means any of the several States, the District 
of Columbia, the Commonwealth of Puerto Rico, the territories and 
possessions of the L^nited States. 
1784 
PUBLIC LAW 91-^09-DEC. 31, 1970 
[84 STAT. 
"(4) The term 'local public body' means any public body (includ-
ing a political subdivision) created by or under the laws of a State or 
two or more States, or a combination of such bodies, and includes 
Indian tribes, bands, groups, and nations (including Alaska Indians, 
Aleuts, and Eskimos) of the United States. 
"(5) The term 'open-space uses' means any use of open-space land 
for (A) park and recreational purposes, (B) conservation of land and 
other natural resources, or (C) historic, architectural or scenic 
purposes." 
TITLE 
V—EESEARCH 
AND TECHNOLOGY 
RESEARCH AND DEMONSTRATIONS 
SEC. 501. The Secretary of Housing and Urban Development is 
authorized and directed to undertake such programs of research, 
studies, testing, and demonstration relating to the mission and pro-
grams of the Department as he determines to be necessary and appro-
priate. In order to carry out activities under this section there are 
authorized to be appropriated such sums as may be necessary. All 
funds so appropriated shall remain available until expended unless 
specifically limited. 
GENERAL PROVISIONS 
SEC. 502. (a) The Secretary shall require, to the greatest extent 
feasible, the employment of new and improved technologies, methods, 
and materials in housing construction, rehabilitation, and mainte-
nance under programs administered by him with a view to reducing 
costs, and shall encourage and promote the acceptance and applica-
tion of such advanced technology, methods, and materials by all seg-
ments of the housing industry, communities, industries engaged in 
urban development activities, and the general public. To the extent 
feasible, in connection with the construction, major rehabilitation, or 
maintenance of any housing assisted under section 501, the Secretary 
shall assure that there is no restraint by contract, building code, zon-
ing ordinance, or practice against the employment of new or improved 
technologies, techniques, materials, and methods or of preassembled 
products which may reduce the cost or improve the quality of such 
construction, rehabilitation, and maintenance, and therefore stimulate 
expanded production of housing, except where such restraint is neces-
sary to insure safe and healthful working and living conditions. 
(b) To encourage large-scale experimentation in the use of new 
technologies, methods, and materials, with a view toward the ultimate 
mass production of housing and related facilities, the Secretary shall 
wherever feasible conduct programs under section 501 in which quali-
fied organizations, pubHc and private, will submit plans for develop-
ment and production of housing and related facilities using such new 
advances on Federal land which has been made available or acquired 
by the Secretary for the purpose of this subsection or on other land 
where (1) local building regulations permit such experimental con-
struction, or (2) necessary variances from building regulations can be 
granted. The Secretary may utilize the funds and authority avail-
able to him under the provisions of section 501 to assist in the imple-
mentation of plans which he approves. 
{c) Notwithstanding any other provision of law\ the Secretary is 
authorized, in connection with projects under this title, to acquire, use 
and dispose of any land and other property required for the project 
as he deems necessary. Notwithstanding the provisions of the Federal 
63 Stat. 377. 
Property and Administrative Services Act of 1949, any land which 
40 u s e 471 note. 
i- 
^ 
5 
./ 
84 STAT.] 
PUBLIC LAW91-609-DEC. 31, 1970 
1785 
is excess property within the meaning of such Act and which is 
determined by the Secretary to be suitable in furtherance of the 
purposes of subsection (b) may be transferred to the Secretary upon 
his request. 
(d) In order to effectively carry out his activities under section 501, 
the Secretary is authorized to provide such advice and technical assist-
ance as may be required and to pay for the cost of writing and publish-
ing reports on activities and undertakings financed under section 501, 
as well as reports on similar activities and undertakings, not so 
financed, which are of significant value in furthering the purposes 
of that section. He may disseminate (without regard to the provisions 
of section 3204 of title 39, United States Code, or section 4154 of such 
title with respect to any period before the effective date of such section 
3204 as provided in section 15(a) of the Postal Reorganization Act) 
any reports, data, or information acquired or held under this title, 
including related data and information otherwise available to the 
Secretary through the operation of the programs and activities of the 
Department of Housing and Urban Development, in such form as he 
determines to be most useful to departments, establishments, and 
agencies of Federal, State, and local governments, to industry, and 
to the general public. 
(e) The Secretary is authorized to carry out the functions authorized 
in section 501 either directly or, without regard to section 3709 of the 
Revised Statutes, by contract or by grant. Advance and progress pay-
ments may be made under such contracts or grants without regard to 
the provisions of section 3648 of the Revised Statutes and such con-
tracts or grants may be made for work to continue for not more than 
four years from the date thereof. 
(f) In carrying out activities under section 501, the Secretary shall 
utilize to the fullest extent feasible the available facilities of other 
Federal departments and agencies, and shall consult with, and make 
recommendations to, such departments and agencies. The Secretary 
may enter into working agreements with such departments and agen-
cies and contract or make grants on their behalf or have such depart-
ments and agencies contract or make grants on his behalf. The 
Secretary is authorized to make or accept reimbursement for the cost of 
such activities. The Secretary is further authorized to undertake activ-
ities under this title under cooperative agreements with industry and 
labor, agencies of State or local governments, educational institutions, 
and other organizations. He may enter into contracts with and receive 
funds from such agencies, institutions, and organizations, and may 
exercise any of the other powers vested in him by section 5i02(c) of the 
Housing Act of 1948. 
(g) The Secretary is authorized to request and receive such infor-
mation or data as he deems appropriate from private individuals and 
organizations, and from public agencies. Any such information or 
data shall be used only for the purposes for which it is supplied, and 
no publication shall be made by the Secretary whereby the informa-
tion or data furnished by any particular person or establishment can 
be identified, except with the consent of such person or establishment. 
Technical 
assistance; re-
ports. 
Ante, p. 752. 
74 Stat. 661. 
Ante, p. 787. 
Contract author-
ity. 
41 use 5. 
31 use 529. 
62 Stat. 1284. 
12 use 1701c. 
REPEAL OF EXISTING RESEARCH AUTHORITIES 
SEC. 503. Effective July 1, 1971, the following provisions of law are 
repealed; except that such repeal shall not affect contracts, commit-
ments, reservations, or other obligations entered into pursuant to such 
provisions prior to that date: 
(1) title I I I of the Housing Act of 1948; 
(2) section 314 of the Housing Act of 1954; 
(3) section 602 of the Housing Act of 1956; 
63 Stat. 431. 
12 use 1701e.. 
68 Stat. 629. 
42 use 1452a, 
70 Stat. 1113. 
12 use 170ld.3. 
75 Stat 
42 u s e 
79 Stat. 
42 u s e 
note. 
80 Stat. 
1287. 
42 u s e 
3373, 
82 Stat. 
165. 
1436. 
474, 
1456 
1286, 
3372, 
607. 
1786 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 STAT. 
(4^ section 207 of the Housing Act of 1961; 
(5) section 301 of the Housing and Urban Development Act 
of 1965; 
(6) sections 1010 and 1011 of the Demonstration Cities and 
Metropolitan Development Act of 1966; and 
(7) section 1714(b) of the Housing and L^rban Development 
Act of 1968. 
EXPERIMENTAL HOUSIXG ALLOWANCE rROGRAM 
SEC. 504. (a) In carrying out activities under section 501, the Sec-
retary shall undertake on an experimental basis a program to demon-
strate the feasibility of providing families of low income with housing 
allowances to assist them in obtaining rental housing of their choice 
in existing standard housing units. For this purpose, the Secretary is 
authorized to pay and to contract to pay, subject to the limitations of 
this section, monthly housing allowances to such families in localities 
determined by the Secretary to have an adequate supply of such 
housing units. 
Payments. 
Q^-^ rpj-^^ liousiug allowance provided to any family of low income 
shall not exceed the difference between 25 per centum of the family's 
income and the maximum fair market rental established in the local-
ity by the Secretary for dwelling units of similar size in projects 
receiving annual payments under contracts authorized by section 101 
Ante, p, 1771. 
^^^ ^-f ^]^g Houslug and L^rban Development Act of 1965. The Secre-
tary shall make the payment of any such allowance to any such family 
conditional upon an agreement by the family that the allowance will 
be used solely for the payment of rent for occupancy in existing stand-
ard housing, 
^^contract author- 
^^^ rpj^^ Secretary is authorized to contract with public or private 
organizations to provide the services required in the selection of fam-
ilies of low income for the distribution of monthly housing allowance 
payments to such families. In contracting with such organizations, the 
Secretary is authorized (without limiting his authority under any 
other provision of law) to delegate to such organizations the authority 
to make the ministerial findings necessary to enable the Secretary to 
make such payments to families selected by such organizations. 
(d) The Secretary is authorized to pay and to contract to pay (in 
an aggregate amount not to exceed $10,000,000 in each of the fiscal 
years 1972 and 1973) monthly housing allowance payments to families 
of low income pursuant to this section. There are authorized to be 
appropriated, out of any money in the Treasury not otherwise appro-
priated, such sums as may be necessary to make payments under this 
subsection. 
Report to Con- 
(g^ 'pj^g Secretary shall, as early as practicable in the calendar years 
^'^^^^' 
1972 and 1973 make a report to the respective Committees on Banking 
and Currency of the Senate and House of Representatives with 
respect to the administration of the program authorized by this section, 
together with any recommendations that he may deem appropriate. 
Definitions. 
"^f) As used lu tMs sectiou— 
(1) The term "families of low income" has the same meaning as 
II use S . 
"^ section 2 (2) of the United States Housing Act of 1937. 
(2) The term "existing standard housing" means a rental unit 
which meets standards prescribed by the Secretary. 
Time limita- 
^g^ ^Q housiug allowauce payments pursuant to this section shall 
be made after June 30,1973. 
tion 
84 
STAT.] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1787 
DEMOXSTRATIOXS W I T H RESPECT TO ABANDONED PROPERTIES 
SEC. 505. (a) In carrying ont activities under section 501, the Sec-
retary may undertake programs to demonstrate the most feasible 
means of providing assistance to localities in which a substantial num-
ber of structures are abandoned or are threatened with abandonment 
for the purpose of arresting the process of housing abandonment 
in its incipiency or in restoring viability to blighted areas in which 
abandonment is pervasive. For this purpose, the Secretary is author-
ized to make grants, subject to the limitations of this section, to assist 
local public oodles in planning and implementing demonstration 
projects for prompt and elective action in alleviating and prevent-
ing such abandonment in designated demonstration areas. 
(b) In administering this section, the Secretary shall give prefer-
ence to those demonscration projects which in his judgment can 
i^easonably be expected to arrest the process of abandonment in the 
demonstration area within a period of two years and which provide for 
innovative approaches to combating the problem of housing aban-
donment. Such projects may include, but shall not be limited to (1) 
acquisition by negotiated purchase, lease, receivership, tax lien pro-
ceedings, or other means authorized by law and satisfactory to the 
Secretary, of real property within the demonstration area or areas 
which is abandoned, deteriorated, or in violation of applicable code 
standards; (2) the repair of streets, sidew^alks, parks, playgrounds, 
publicly owned utilities, public buildings to meet needs consistent 
with the revitalization and continued use of the area; (8) the demoli-
tion of structures determined to be structurally unsound or unfit for 
human habitation or which contribute adversely to the physical or 
social environment of the locality involved; (4) the establishment 
of recreational or community facilities including public playgrounds; 
(5) the improvement of garbage and trash collection, street cleaning 
and other essential services necessary to the revitalization ajid mainte-
nance of the area; (6) the rehabilitation of privately and publicly 
owned real property by the locality; and (7) the establishment and 
operation of locally controlled, nonprofit housing management cor-
porations and municipal repair programs. 
(c) Svibject to such conditions as the Secretary may prescribe, real 
property held as part of a project assisted under this section may be 
made available to (1) a limited dividend corporation, nonprofit cor-
poration, or association, cooperative or public body or agency, or other 
approved purchaser or lessee, or (2) a purchaser who would be eligi-
ble for a mortgage insured under section 221 (d) (3) or (d) (4). sec-
tion 221(h)(1), section 235 (i) or (j)(l), or section 236 of the 
National Housing Act, for purchase or lease at fair market value for 
use by such purchaser or lessee, as, or in the provision of, new or 
rehabilitated housing for occupancy by families or individuals of low 
or moderate income. 
(d) Grants under this section shall be in amounts which do not 
exceed 90 per centum of the net project cost as determined by the Sec-
retary. There are authorized to be appropriated for demonstration 
grants under this section not to exceed $20,000,000 for the fiscal year 
ending June 30, 1971. Any amounts appropriated shall remain avail-
able until expended and any amount authorized but not appropriated 
may be appropriated for any succeeding fiscal year commencing prior 
to July 1, 1972, Not more than one-third of the aggregate amount of 
grants made in any fiscal year under this section shall be made with 
respect to projects undertaken by one locality. 
(e) The provisions of sections 106, 114, and 115 of Title I of the 
Housing Act of 1949, and section 312 of the Housing Act of 1964, may 
Conditions. 
68 Stat. 601; 
80 Stat. 1268. 
12 u s e 1715L 
82 Stat. 477, 
498. 
12 u s e 171SZ, 
1715Z-1, 
Appropriation, 
42 u s e 1456, 
1465, 1466. 
42 u s e 1452b., 
1788 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 STAT. 
68 Stat. 626. 
42 use 1460. 
Report to Con-
gress. 
apply to projects assisted under this Act as if such projects were being 
carried out in urban renewal areas as part of urban renewal projects 
within the meaning of section 110 of the Housing Act of 1949. 
(f) The Secretary shall report annually to the Congress with 
respect to the status of demonstration projects funded by him and shall 
make such recommendations to the Congress as he deems necessary to 
further the purposes of this section. 
TITLE VI—CKIME INSUEANCE 
82 Stat. 556. 
12 u s e 1749bbb 
note. 
FINDINGS AND PURPOSE 
SEC. 601. Section 1102(b) of the Housing and Urban Development 
Act of 1968 is amended by striking out "and" immediately before 
"(2)", and by inserting before the period at the end thereof the fol-
lowing: "; and (3) provide direct insurance through the facilities of 
the Federal Government in the case of properties for which statewide 
programs and the Federal reinsurance program either do not make 
crime insurance available or offer such insurance to property owners 
only at prohibitive cost". 
12 
use 
1749bbb-
12 
use 
1749bbb-
AMENDMENTS TO TITLE XII OF THE NATIONAL HOUSING ACT 
1
2 use i7 49bbb. 
SEC. 602. (a) Section 1201 of the National Housing Act is amended 
to read as follows: 
" P R O G R A M AUTHORITY 
"SEC. 1201. (a) The Secretary is authorized to establish and carry 
out the programs provided for in parts A, B, C, and D of this title. 
" (b) (1) The powers of the Secretary under this title shall terminate 
on April 30, 1975, except to the extent necessary— 
"(A) to continue reinsurance and direct insurance in accord-
ance with the provisions of sections 1223(b) and 1231(c) until 
April 30,1978; 
"(B) to process, verify, and pay claims for reinsured losses and 
directly insured losses and perform other necessary functions in 
connection therewith; and 
"(C) to complete the liquidation and termination of the reinsur-
ance and direct insurance programs. 
"(2) On April 30, 1978, or as soon thereafter as possible, the Secre-
tary shall submit to the Congress, for its approval, a plan for the 
liquidation and termination of the reinsurance and direct insurance 
programs." 
(b) Section 1203(a) of such Act is amended by redesignating para-
graphs (1) through (13) as paragraphs (4) tihrough (16), respec-
tively, and by inserting immediately after and below "the term—" 
the following new paragraphs: 
"(1) 'affordable rate' means such premium rate as the Secre-
tary determines would permit the purchase of a specific type of 
insurance coverage by a reasonably prudent person in similar 
circumstances with due regard to the costs and benefits involved; 
"(2) 'crime insurance' means insurance against losses resulting 
from robbery, burglary, larceny, and similar crimes, and may 
include broad form personal theft insurance, mercantile open 
stock insurance, mercantile robbery and mercantile safe burglary 
insurance, storekeepers burglary and robbery insurance, office 
burglary and robbery insurance, and may include business inter-
ruption insurance as the Secretary may designate; the term does 
not include automobile insurance or losses resulting 
from 
embezzlement: 
Definitions. 
12 u s e 1749bbb-
84 STAT. ] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1789 
"(3) 'directly insured losses' means losses on direct insurance 
claims and all direct expenses incurred in connection therewith, 
including but not limited to expenses for processing, verifying, 
and paying such losses;". 
(c) Section 1221 (a) (2) of such Act is amended by striking out "sec- 
f^ jT^n'i^^^a] 
tion 1203(a) (10)" each place it appears and inserting in lieu thereof 
"section 1203(a) (13)". 
(d) Title X I I of such Act is amended by redesignating part C and 
sections 1231 through 1241 as part D and sections 1241 through 1251, 
respectively, and by inserting after part B the following new part: 
12 
use 
1749bbb-
12 
use 
1749bbb-
" P A R T C — F E D E R A L iNSURi'iNCE AGAINST BURGLARY AND T H E F T 
"REVIEW AND PROGRAM AUTHORITY 
"SEC, 1231. (a) The Secretary shall conduct a continuing review 
of the market availability situation in each of the several States to 
determine whether crime insurance is available at affordable rates 
either through the normal insurance market or through a suitable 
program adopted under State law\ 
"(b) Upon determining pursuant to subsection (a) that, at any 
time on or after August 1,1971, a critical market unavailability situ-
ation for crime insurance then exists in any State and has not been 
met through appropriate State action, the Secretary is authorized to 
make crime insurance available at affordable rates within such State 
through the facilities of the Federal Government. Such insurance 
shall be provided upon such terms and conditions, and subject to such 
deductibles and other restrictions and limitations, as the Secretary 
deems appropriate, but no such insurance shall be made available to 
a property which the Secretary determines to be uninsurable or to a 
property with respect to which reasonable protective measures to pre-
vent loss, consistent with standards established by the Secretary, have 
not been adopted. 
" (c) Notwithstanding any other provision of this title, direct insur-
ance may be continued for the term of the policies written prior to 
the date of termination of the Secretary's direct insurance authority 
under this part, for as long as the insured pays the required direct 
insurance premiums; except that direct insurance under this part for 
any risk shall be terminated after notice whenever the Secretary 
determines that the standard lines of crime insurance otherwise have 
become available to such property at affordable rates. 
"USE or EXISTING FACILITIES AND SERVICES 
"SEC. 1232. In carrying out his responsibilities under this part, the 
Secretary may utilize— 
"(1) insurance companies and other insurers, insurance agents 
and brokers, and insurance adjustment organizations, as fiscal 
agents of the United States, 
"(2) officers and employees of the Department of Housing and 
Urban Development, and such other officers and employees of 
any executive agency (as defined in section 105 of title 5 of the 
United States Code) as the Secretary and the head of any such 
^° s^^'- ^79. 
agency may from time to time agree upon, on a reimbursement 
or other basis, or 
"(3) both the alternatives specified in paragraphs (1) and (2), 
or any combination thereof. 
gress» 
1790 
PUBLIC LAW 91^09-DEC. 31, 1970 
[84 STAT. 
"ESTABLISHMENT OF AFFORDABLE RATES 
"SEC. 1233. In estimating the affordable rates for the various crime 
insurance coverages offered from time to time under this part, the 
Secretary shall consult with appropriate State insurance authorities 
and other knowledgeable persons and is authorized to take into con-
sideration the nature and degree of the risks involved, the protective 
devices employed, the extent of anticipated losses, the prevailing rates 
for similar coverages in adjacent or comparable areas and territories, 
the economic importance of the various individual coverages and the 
type of property involved, and the relative abilities of the particular 
classes and types of insureds to pay the full estimated costs of such 
coverages. Nothing in this section shall be construed to prohibit or 
require either the adoption of uniform national rates or the periodic 
modification of currently estimated affordable rates for any particular 
line or subline of coverage, class, State, territory, or risk on the basis 
of additional information or actual loss experience. 
"REPORTS ON OPERATIONS 
Rep^orts to Con- 
ag^,^ ;^234. The Secretarv shall include in his reports to the Con-
gress on the program authorized by this title full and complete 
information on his operations and activities under this part, together 
with such recommendations with respect thereto as he may deem 
appropriate." 
82 Stat. 561. 
^^^ Sectiou 1222(a) of such Act is amended by striking out "section 
8. 
" 1233" and inserting in lieu thereof "section 1243". 
1
2 use i749bbb- 
(f) Section 1244(c) of such Act (as redesignated by subsection (d) 
^^' 
of this section) is amended by striking out "section 1232" and insert-
ing in lieu thereof "section 1242". 
^
^
1
2 use i749bbb- 
^g^ Section 1241(a) of such Act (as so redesignated) is amended 
by inserting "or direct insurance" after "reinsurance", and by insert-
ing "or property owners" after "insurers". 
(h) Section 1241(b) of such Act (as so redesignated) is amended 
by inserting "or direct insurance" after "reinsurance". 
1
2 use i749bbb- 
(^i^ Section 1242(a) of such Act (as so redesignated) is amended— 
^^' 
(1) by striking out "the reinsurance program" and inserting 
in lieu thereof "the reinsurance and direct insurance programs"; 
(2) by inserting "or direct insurance" after "reinsurance" in 
paragi-aphs (1), (2), and (4); 
(3) by inserting "or property owner" after "any insurer" where 
it first appears in paragraj>h (4) ; and 
(4) by inserting "or directly insured" after "reinsured" in 
paragraph (4). 
1
2 use i749bbb- 
Q-^ Section 1243 of such Act (as so redesignated) is amended— 
(1) by inserting "and direct insurance" after "reinsurance" in 
subsection 
(a) (1) and each place it appeai-s in subsection 
(b)(1); 
(2) by striking out "part B" in subsection (b) (1) and insert-
ing in lieu thereof "parts B and C"; and 
(3) by redesignating clauses (4) and (5) of subsection (b) as 
clauses (5) and (6), and inserting after clause (3) a new clause 
as follows: 
"(4) such amounts which are hereby authorized to be appro-
priated as may be necessary from time to time to reimburse the 
fund for losses and expenses (including administrative expenses) 
incurred in carrying out the program authorized under part C;". 
13 
84 STAT. ] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1791 
(k) Section 1244(a) of such Act (as so redesignated) is amended 
by striking out "Any insurer or pool acquiring reinsurance" and 
inserting in lieu thereof "Any insurer, pool, or property owner acquir-
ing reinsurance or direct insurance". 
(1) Section 1244(c) of such Act (as so redesignated) is amended 
by inserting "or direct insurance" after "reinsurance". 
REVIEW o r STATEWIDE PLANS 
SEC. 603. Title XII of the National Housing Act is amended by 
inserting after section 1214 a new section as follows: 
(( 
OFFICE OF REVIEW AND 
COMPLIANCE 
"SEC. 1215. The Secretary, through an Office of Review and Com-
pliance under the Federal Insurance Administrator, shall periodically 
review each plan under this part and the methods and practices by 
which such plan is being actually carried out in the areas and com-
munities where it is intended to operate, in order to assure that such 
plan is effectively making essential property insurance readily avail-
able in such areas and communities and is otherwise carrying out the 
purposes of this title, and in order to identify any aspects of the 
operation or administration of such plan which may require revision, 
modification, or other action to carry out such purposes." 
82 Stat. 565. 
12 u s e 1749bbb-
82 Stat. 556. 
12 u s e 1749bbb. 
CONFORMING 
AMENDMENT 
SEC. 604. Clause (2) of the first sentence of section 520(b) of the 
National Housing Act is amended by inserting "and directly insured" 
after "reinsured" wherever it appears. 
TITLE 
VII—URBAN 
GROWTH 
AND 
NEW COMMUNITY 
DEVELOPMENT 
79 Stat. 473; 
82 Stat. 566. 
12 u s e 1735d. 
SHORT TITLE AND STATEMENT OF PURPOSE 
SEC. 701. (a) This title may be cited as the "Urban Growth and 
New Community Development Act of 1970". 
(b) It is the policy of the Congress and the purpose of this title to 
provide for the development of a national urban growth policy and 
to encourage the rational, orderly, efficient, and economic growth, 
development, and redevelopment of our States, metropolitan areas, 
cities, counties, towns, and communities in predominantly rural areas 
which demonstrate a special potential for accelerated growth; to 
encourage the prudent use and conservation of our natural resources; 
and to encourage and support development which will assure our 
communities of adequate tax bases, community services, job oppor-
tunities, and well-balanced neighborhoods in socially, economically, 
and physically attractive living environments. 
PART A—DEVELOPMENT OF A NATIONAL URBAN GROWTH POLICY 
FINDINGS AND DECLARATION OF POLICY 
SEC. 702. (a) The Congress finds that the rapid growth of urban 
population and uneven expansion of urban development in the United 
States, together with a decline in farm population, slower growth in 
rural areas, and migration to the cities, has created an imbalance 
between the Nation's needs and resources and seriously threatens our 
physical environment, and that the economic and social development 
eitation of title. 
1792 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 STAT. 
of the Nation, the proper conservation of our natural resources, and 
the achievement of satisfactory living standards depend upon the 
sound, orderly, and more balanced development of all areas of the 
Nation. 
(b) The Congress further finds that Federal programs affect the 
location of population, economic growth, and the character of urban 
development; that such programs frequently conflict and result in 
undesirable and costly patterns of urban development which adversely 
affect the environment and wastefully use our natural resources; and 
that existing and future programs must be interrelated and coordi-
nated within a system of orderly development and established priori-
ties consistent with a national urban growth policy. 
(c) To promote the general welfare and properly apply the resources 
of the Federal Government in strengthening the economic and social 
health of all areas of the Nation and more adequately protect the 
physical environment and conserve natural resources, the Congress 
declares that the Federal Government, consistent with the responsi-
bilities of State and local government and the private sector, must 
assume responsibility for the development of a national urban growth 
policy which shall incorporate social, economic, and other appropriate 
factors. Such policy shall serv© as a guide in making specific decisions 
at the national level which affect the pattern of urban growth and shall 
provide a framework for development of interstate. State, and local 
growth and stabilization policy. 
(d) The Congress further declares that the national urban growth 
policy should— 
(1) favor patterns of urbanization and economic development 
and stabilization which offer a range of alternative locations and 
encourage the wise and balanced use of physical and human re-
sources in metropolitan and urban regions as well as in smaller 
urban places which have a potential for accelerated growth; 
(2) foster the continued economic strength of all parts of the 
United States, including central cities, suburbs, smaller communi-
ties, local neighborhoods, and rural areas; 
(3) help reverse trends of migration and physical growth which 
reinforce disparities among States, regions, and cities; 
(4) treat comprehensively the problems of poverty and employ-
ment (including the erosion of tax bases, and the need for better 
community services and job opportunities) which are associated 
with disorderly urbanization and rural decline; 
(5) develop means to encourage good housing for all Ameri-
cans without regard to race or creed; 
(6) refine the role of the Federal Government in revitalizing 
existing communities and encouraging planned, large-scale urban 
and new community development; 
(7) strengthen the capacity of general governmental institu-
tions to contribute to balanced urban growth and stabilization; and 
(8) facilitate increased coordination in the administration of 
Federal programs so as to encourage desirable patterns of urban 
growth and stabilization, the prudent use of natural resources, and 
the protection of the physical environment. 
URBAN GROWTH REPORT 
SEC. 703. (a) In order to assist in the development of a national 
urban growth policy, the President shall utilize the capacity of his 
office, adequately organized and staffed for the purpose, through an 
identified unit of the Domestic Council, and of the departments and 
agencies within the executive branch to collect, analyze, and evaluate 
such statistics, data, and other information (including demographic, 
84 STAT.] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1793 
economic, social, land use, environmental, and governmental informa-
tion) as will enable him to transmit to the Congress, during the month 
of February in every even-numbered year beginning with 1972, a 
Report on Urban Growth for the preceding two calendar years which 
shall include— 
(1) information and statistics describing characteristics of 
urban growth and stabilization and identifying significant trends 
and developments; 
(2) a summary of significant problems facing the United States 
as a result of urban growth trends and developments; 
(3) an evaluation of the progress and effectiveness of Federal 
efforts designed to meet such problems and to carry out the 
national urban growth policy; 
(4) an assessment of the policies and structure of existing and 
proposed interstate planning and developments affecting such 
policy; 
(5) a review of State, local, and private policies, plans, and 
programs relevant to such policy; 
(6) current and foreseeable needs in the areas served by poli-
cies, plans, and programs designed to carry out such policy, and 
the steps being taken to meet such needs; and 
(7) recommendations for programs and policies for carrying 
out such policy, including such legislation and administrative 
actions as may be deemed necessary and desirable. 
(b) The President may transmit from time to time to the Congress 
supplementary reports on urban growth which shall include such sup-
plementary and revised recommendations as may be appropriate. 
(c) To assist in the preparation of the Report on Urban Growth 
and any supplementary reports, the President may establish an advi-
sory board, or seek the advice from time to time of temporary advisory 
boards, the members of whom shall be drawn from among private citi-
zens familiar with the problems of urban growth and from among 
Federal officials, Governors of States, mayors, county officials, mem-
bers of State and local legislative bodies, and others qualified to assist 
in the preparation of such reports. 
PART B—DEVELOPMENT or NEW COMMUNITIES 
Supplementary 
reports, transmit-
tal to Congress. 
Advisory board, 
establishment. 
FINDINGS AND PURPOSE 
SEC. 710. (a) The Congress finds that this Nation is likely to experi-
ence during the remaining years of this century a population increase 
of about seventy-five million persons. 
(b) The Congress further finds that continuation of established 
patterns of urban development, together with the anticipated increase 
in population, will result in (1) inefficient and wasteful use of land 
resources which are of national 
economic and 
environmental 
importance; (2) destruction of irreplaceable natural and recreational 
resources and increasing pollution of air and water; (3) diminished 
opportunity for the private homebuilding industry to operate at its 
highest potential capacity in providing good housing needed to serve 
the expanding population and to replace substandard housing; (4) 
costly and inefficient public facilities and services at all levels of 
government; (5) unduly limited options for many of our people as to 
where they may live, and the types of housing and environment in 
which they may live; (6) failure to make the most economic use of 
present and potential resources of many of the Nation's smaller cities 
and towns, including those in rural and economically depressed areas, 
and decreasing employment and business opportunities for their 
development. 
1794 
PUBLIC LAW 91^09-DEC. 31, 1970 
[84 STAT. 
residents; (7) further lessening of employment and business oppor-
tunities for the residents of central cities and of the ability of such 
cities to retain a tax base adequate to support vital services for all 
their citizens, particularly the poor and disadvantaged; (8) further 
separation of people within metropolitan areas by income and by 
race; (9) further increases in the distances between the places where 
people live and where they work and find recreation; and (10) 
increased cost and decreased effectiveness of public and private facil-
ities for urban transportation. 
(c) The Congress further finds that better patterns of urban devel-
opment and revitalization are essential to accommodate future popula-
tion growth; to prevent further deterioration of the Nation's physical 
and social environment; and to make positive contributions to improv-
ing the overall quality of life within the Nation, 
New community 
(^(J) xiie Cougress furthcr finds that the national welfare requires 
the encouragement of well-planned, diversified, and economically 
sound new communities, including major additions to existing com-
munities, as one of several essential elements of a consistent national 
program for bettering patterns of development and renewal. 
(e) The Congress further finds that desirable new community devel-
opment on a significant national scale has been prevented by difficulties 
in (1) obtaining adequate financing at moderate cost for enterprises 
which involve large initial capital investment, extensive periods before 
investment can be returned, and irregular patterns of return; (2) the 
timely assembly of sufficiently large sites in economically favorable 
locations at reasonable cost; and (3) making necessary arrangements, 
among all private and public organizations involved, for providing 
site and related improvements (including streets, sewer and water 
facilities, and other public and conununity facilities) in a timely and 
coordinated manner. 
(f) It is, therefore, the purpose of this part to provide private 
developers and State and local public bodies and agencies (including 
regional or metropolitan public bodies and agencies) with financial 
and other assistance necessary for encouraging the orderly develop-
ment of well-planned, diversified, and economically sound new com-
munities, including major additions to existing communities, and to 
do so in a manner which will rely to the maximum extent on private 
enterprise; strengthen the capacity of State and local governments to 
deal with local problems; preserve and enhance both the natural and 
urban environment; increase for all persons, particularly members of 
minority groups, the available choices of locations for living and 
working, thereby providing a more just economic and social environ-
ment; encourage the fullest utilization of the economic potential of 
older central cities, smaller towns, and rural communities; assist in the 
efficient production of a steady supply of residential, commercial, and 
industrial building sites at reasonable cost; increase the capability 
of all segments of the home-building industry, including both small 
and large producers, to utilize improved technology in producing the 
large volume of well-designed, inexpensive housing needed to accom-
modate population growth; help create neighborhoods designed for 
easier access between the places where people live and the placies where 
they work and find recreation; and encourage desirable innovation in 
meeting domestic problems whether physical, economic, or social. It 
is also the purpose of this part to improve the organizational capacity 
of the Federal Government to carry out programs of assistance for 
the development of new communities and the revitalization of the 
Nation's urban areas. 
Federal financial 
as sistance. 
84 STAT. ] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1795 
DEFIXITIOXS 
SEC. 711. As used in this part— 
(a) The term "new community development program" means a 
program which is intended to result in a newly built community or a 
major addition to an existing community and which meets the eligi-
bility standards set forth in section 712. 
(b) The term "private new community developer" means any pri-
vate entity organized in a form satisfactory to the Secretary for car-
rying out one or more new community development programs. 
(c) The term "State land deA'elopment agency" means any State 
or local public body or agency with authority to act as developer in 
carrying out one or more new community development programs. 
(d) The term "State" means any State of the LTnited States, the 
District of Columbia, the Commonwealth of Puerto Rico, any terri-
tory or possession of the United States, or any agency or instrumen-
tality of any of the foregoing. 
(e) The term "local public body or agency" means any public body 
or agency, including a political subdivision, created by or under the 
laws of a State or two or more States, or a combination of such bodies 
or agencies. 
(f) The term "land development" means the process of clearing 
and grading land, making, installing, or constructing waterlines and 
water supply installations, sewerlines and sewage disposal installa-
tions, steam, gas, and electric lines and installations, roads, streets, 
curbs, gutters, sidewalks, storm drainage facilities, and other installa-
tions or work, whether on or off the site, which the Secretary deems 
necessary or desirable to prepare land for residential, commercial, 
industrial, or other uses, or to provide facilities for public or com-
mon use. The term "land development" includes the construction of 
public facilities, but does not include the construction of any other 
building unless it is (1) needed in connection with a water supply or 
sewage disposal installation or a steam, gas, or electric line or installa-
tion, or (2) is to be owned and maintained by residents of the new 
community under joint or cooperative arrangements approved by the 
Secretary. 
(g) The term "actual cost" means the costs (exclusive of rebates 
or discounts) incurred by a new^ community developer in carrying 
out the land development assisted under this Act. These costs may 
include amounts paid for labor, materials, construction contracts, 
land planning, engineers' and architect's fees, surveys, taxes, and 
interest during development, organizational and legal expenses, such 
allocation of general overhead expenses as are acceptable to the 
Secretary, and other items of expense incidental to development which 
may be approved by the Secretary. If the Secretary determines that 
there is an identity of interest between the developer and a con-
tractor, there may be included as a part of actual cost an allowance 
for the contractor's profit or risk an amount deemed reasonable by the 
Secretary. 
(h) The term "Secretary" means the Secretary of Housing and 
Urban Development. 
(i) The term "Community Development Corporation" means the 
corporation established within the Department of Housing and Urban 
Development under section 729. 
47-348 O - 72 - 30 (Pt. 2) 
1796 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 
STAT. 
Prohibition, 
ELIGIBLE N E W COMMUNITY 
DEVELOPMENT 
SEC. 712. (a) A new community development program is eligible 
for assistance under this part only if the Secretary determines that 
the program (or the new community it contemplates)— 
(1) will provide an alternative to disorderly urban growth, 
helping preserve or enhance desirable aspects of the natural and 
urban environment or so improving general and economic condi-
tions in established communities as to help reverse migration 
from existing cities or rural areas; 
(2) will be economically feasible in terms of economic base 
or potential for economic growth; 
(3) will contribute to the welfare of the entire area which will 
be substantially affected by the program and of which the land 
to be developed is a part; 
(4) is consistent with comprehensive planning, physical and 
social, determined by the Secretary to provide an adequate basis 
for evaluating the new community development program in 
relation to other plans (including State, local, and private plans) 
and activities involving area population, housing and develop-
ment trends, and transportation, water, sewerage, open space, 
recreation, and other relevant facilities; 
(5) has received all governmental reviews and approvals 
required by State or local law, or by the Secretary; 
(6) will contribute to good living conditions in the community, 
and that such community will be characterized by well balanced 
and diversified land use patterns and will include or be served by 
adequate public, community, and commercial facilities (including 
facilities needed for education, health and social services, recrea-
tion, and transportation) deemed satisfactory by the Secretary; 
(7) makes substantial provision for housing within the means 
of persons of low and moderate income and that such housing will 
constitute an appropriate proportion of the community's housing 
supply; and 
(8) will make significant use of advances in design and tech-
nology with respect to land utilization, materials and methods 
of construction, and the provision of community facilities and 
services. 
(b) A new community development program approved for assist-
ance under this part shall be undertaken by a private new community 
developer or State land development agency approved by the Secre-
tary on the basis of financial, technical, and administrative ability 
which demonstrates capacity to carry out the program with reasonable 
assurance of its completion. 
GUARANTEES 
SEC. 713. (a) The Secretary (acting through the Community Devel-
opment Corporation) is authorized to guarantee, and enter into 
<',ommitments to guarantee, the bonds, debentures, notes, and other 
obligations issued by or on behalf of private new community developers 
and State land development agencies for the purpose of financing real 
property acquisition and land development and to compensate for the 
use of real property or the removal of liens or encumbrances on such 
property, pursuant to the new community development programs 
approved by the Secretary. The Secretary may make such guarantees 
and enter into such commitments upon such terms and conditions as 
lie may prescribe consistent with the limitations and conditions con-
tained in section 716; except that no obligation of any State land 
development agency shall be guaranteed under this section if the 
income from such obligation is exempt from Federal taxation. The 
84 STAT. ] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1797 
Secretary is authorized to make grants to any State land development 
agency the obligations of which are guaranteed under this section in 
amounts estimated by him not to exceed the difference between the 
interest paid on such obligations and the interest on similar obligations 
the income from which is exempt from Federal taxation. 
(b) The full faith and credit of the United States is pledged to the 
payment of all guarantees made under this section with respect to 
principal, interest, and any redemption premiums. Any such guaran-
tee made by the Secretary shall be conclusive evidence of the eligi-
bility of the obligations for such guarantee, and the validity of any 
guarantee so made shall be incontestable in the hands of a holder of 
the guaranteed obligation. 
(c) The outstanding bonds, debentures, notes or other obligations 
guaranteed under this section with respect to a single new commu-
nity development program shall involve a principal obligation in an 
amount (1) in the case of a State land development agency, not exceed-
ing 100 per centum of the sum of the Secretary's estimate of the 
value of the real property before development and his estimate of the 
actual cost of the land development, or (2) in the case of a private 
new community developer, not exceeding the sum of 80 per centum 
of the Secretary's estimate of the value of the real property before 
development and 90 per centum of his estimate of the actual cost of 
the land development. 
(d) The outstanding principal obligations guaranteed under this 
Limitations. 
section with respect to a single new community development program 
shall at no time exceed $50,000,000. 
(e) The aggregate of the outstanding principal obligations guar-
anteed under this section shall at no time exceed $500,000,000. 
LOANS 
SEC. 714. (a) The Secretary (acting through the Community Devel-
opment Corporation) is authorized, subject to the limitations and 
conditions contained in section 716, to make and enter into agreements 
to make loans to or on behalf of private new community developers 
and State land development agencies for the purpose of assisting them 
to make interest payments on indebtedness incurred by them to finance 
new community development programs approved by him. Loans under 
this section shall be in amounts which do not exceed the amount of 
interest the Secretary estimates is payable on indebtedness attribut-
able to land acquisition or land development and shall be made only 
with respect to interest payments on indebtedness outstanding during, 
an initial development period (not to exceed fifteen years) which the 
Secretary estimates to be prior to the time when land marketing 
activity is of sufficient volume to permit continued development under 
the new community development program without the benefit of 
further loans under this section. 
(b) The Secretary shall require that loans under this section shall 
Repayment. 
be repaid, with interest and on terms and conditions satisfactory to 
him, commencing at such time as development progress and market-
ing under the new community development program permit such 
repayment, but not later than fifteen years after the date the loan 
is made. Such loans shall bear interest at a rate specified by the Sec- 
interest rate. 
retary which shall not be less than a rate determined by the Secretary 
of the Treasury taking into consideration the current average market 
yield on outstanding marketable obligations of the United States with 
remaining periods to maturity comparable to the average maturities 
of such loans, plus one-eighth of 1 per centum. 
1798 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 STAT. 
Limitations. 
Appropriation* 
Establishment. 
(c) The principal amount of the loans outstanding at any time 
under this section with respect to a single new community dev-elop-
ment program shall not exceed $20,000,000. 
(d) The aggregate principal amount of the loans outstanding under 
this section shall at no time exceed $240,000,000. 
PUBLIC SERVICE GRANTS 
SEC. 715. In addition to providing assistance under the preceding 
sections, the Secretary (acting through the Community Development 
Corporation) may make public service grants (in such amounts and 
on such terms and conditions as he deems appropriate) to a State land 
development agency or to the State or local public body having 
responsibility for providing the services involved to cover the cost of 
providing during an initial period (not exceeding three years) essen-
tial public services (including educational, health, and safety serv-
ices) which the Secretary deems necessary adequately to serve the 
needs of the residents of the development prior to completion of per-
manent arrangements for the provision of such services. There are 
authorized to be appropriated such sums as may be necessary to carry 
out the purposes of this section. 
LIMITATIONS ON GUAIL^NTEES AND LOANS 
SEC. 716. (a) No guarantee or loan shall be made under this part 
unless the Secretary has determined that the new community develop-
ment program represents an acceptable financial risk to the United 
States, taking into consideration (1) the financial and security inter-
ests of the United States, including the manner in which the developer 
proposes to finance and schedule land acquisition, land development, 
and marketing, and (2) the public purposes of this pait and the spe-
cial problems involved in financing new communities, including (i) 
the large amount of initial capital required to finance sound new 
communities, (ii) the extended period before initial returns can be 
expected, and (iii) the irregular pattern of cash returns characteristic 
of this type of development. 
(b) The Secretary shall take such steps as he considers reasonable to 
assure that bonds, debentures, notes, and. other obligations guaranteed, 
or with repect to which interest loans are made, under this part will— 
(1) be issued to investors approved by, or meeting require-
ments prescribed by, the Secretary, or if an offering to the public 
is contemplated, be underwritten upon terms and conditions 
approved by the Secretary; 
(2) bear interest at a rate satisfactory to the Secretary; 
(3) contain or be subject to repayment, maturity, and other 
provisions satisfactory to the Secretary; and 
(4) contain or be subject to provisions with respect to the pro-
tection of the security interests of the United States, including 
any provisions deemed appropriate by the Secretary relating to 
subrogation, liens, and releases of liens, payment of taxes, cost 
certification procedures, escrow or trusteeship requirements or 
other matters. 
REVOLVING FUND 
SEC. 717. (a) The Secretary is authorized to establish a revolving 
fund to provide for (1) the timely payment of any liabilities incurred 
as the result of guarantees or grants under section 713; (2) making-
loans authorized under this part; (3) payment of obligations issued 
to the Secretary of the Treasury under subsection (b) of this section; 
and (4) any other program expenditures, including administrative 
84 STAT. ] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1799 
and nonadministrative expenses. Such revolving fund shall be com-
prised of (1) receipts from fees and charges; (2) recoveries under 
security, subrogation, and other rights; (3) repayments, interest 
income, and any other receipts obtained in connection with guarantees 
or loans made under this part; (4) proceeds of the obligations issued 
to the Secretary of the Treasury pursuant to subsection (b) of this 
section; and (5) such sums, which are hereby authorized to be appro-
priated, as may be required for the payment of the obligations issued 
to the Secretary of the Treasury for the purpose of making grants to 
State land development agencies under section 713, and for other 
purposes under this part. Money in the revolving fund not currently 
needed for the purpose of this part shall be kept in cash on hand or 
on deposit, or invested in obligations of the United States or guar-
anteed thereby, or in obligations, participations, or other instruments 
which are lawful investments for fiduciary, trust, or public funds. 
(b) The Secretary may issue obligations to the Secretary of the 
Treasury in an amount sufficient to enable the Secretary to carry out 
the functions authorized by this part. The obligations issued under 
this subsection shall have such maturities and bear such rate or rates 
of interest as shall be determined by the Secretary of the Treasury. 
The Secretary of the Treasury is authorized and directed to purchase 
any obligations so issued, and for that purpose he is authorized to 
use as a public debt transaction the proceeds from the sale of any 
securities issued under the Second Liberty Bond Act, and the purposes 
^° ^^^' ^ss. 
for w*hich securities may be issued under that Act are extended to 
include purchases of the obligations, hereunder. 
(c) Notwithstanding any other provision of law relating to the 
Expenses, pay-
acquisition, handling, improvement, or disposal of real and other '^^^^' 
property by the United States, the Secretary shall have power, for 
the protection of the interests of the fund authorized under this sec-
tion, to pay out of such fund all expenses or charges in connection with 
the acquisition, handling, improvement, or disposal of any prop-
erty, real or personal, acquired by him as a result of recoveries under 
security, subrogation, or other rights. 
SUPPLEMENTARY GRANTS FOR PUBLIC 
FACILITIES 
SEC. 718. (a^ The Secretary is authorized to make supplementary 
grants to any State or local public body or agency carrying out a new 
community assistance project, as defined in subsection (c), if the Secre-
tary determines that such project is necessary or desirable for carry-
ing out a new community development program. In no case shall any 
grant under this section exceed 20 per centum of the cost of the new 
community assistance project for which the grant is made; and in no 
case shall the total Federal contributions to the cost of such project 
be more than 80 per centum. 
(b) In carrying out his authority under this section, the Secretary 
shall, wdth respect to any new community assistance project assisted 
by grants administered by a Federal department or agency other than 
the Department of Housing and Urban Development, consult with 
such department or agency concerning the project; and he shall, for 
the purpose of subsection (a), accept the certification of such depart-
ment or agency as to the cost of such project. 
(c) For the purposes of this section, a "new community assistance ag'sfs^^n^e"?"""^ 
project" is a project assisted by grants under section 3 of the Urban ect." 
Mass Transportation Act of 1964; section 120(a) of title 23, United 
^"'^' P- ^^2. 
States Code; section 19 of the Airport and Airway Development Act 
^2 stat. 335. 
of 1970; title VI of the Public Health Service Act; title II of the 
^^"S' ''* ^f' 
Library Services and Construction Act; section 5 of the Land and 
20 use 355a. 
Water Conservation Fund Act of 1965; title VII of thie Housing Act 
le use 46oi-n. 
1800 
PUBLIC LAW 91^09-DEC. 31, 1970 
[84 STAT. 
Ante, p. 1781. 
42 use 3102, 
3103. 
33 u s e 466e. 
7 u s e 1926. 
20 use 713,714. 
42 use 3131. 
Appropriation. 
82 Stat. 516; 
83 Stat. 391. 
42 u s e 3911. 
of 1961; section 702 or 703 of the Housing and Urban Development Act 
of 1965; section 8 of the Federal Water Pollution Control Act; 
section 306 (a) (2) of the Consolidated Farmers Home Administration 
Act; section 103 or 104 of the Higher Education Facilities Act of 1963; 
or section 101(a)(1) of the Public Works and Economic Devel-
opment Act of 1965 with respect to projects of a type eligible for 
assistance under any of the other provisions of law listed in this 
subsection. 
(d) There are authorized to be appropriated for supplementary 
grants under this section not to exceed $36,000,000 for the fiscal year 
ending June 30, 1971, not to exceed $66,000,000 for each of the fiscal 
years ending June 30,1972, and June 30, 1973, and not to exceed such 
sums as may be necessary for any fiscal year commencing after June 30, 
1973, Any amount so appropriated shall remain available until 
expended, and any amounts authorized for any fiscal year but not 
appropriated may be appropriated for any succeeding fiscal year. 
In addition, the amounts authorized to be appropriated for grants 
under section 412 of the Housing and Urban Development Act of 1968 
and the amounts appropriated thereunder shall be available for carry-
ing out this section and shall remain available until appropriated and 
expended. 
TECHNICAL ASSISTANCE 
SEC. 719. The Secretary is authorized to provide, either directly or 
by contract or other arrangements, technical assistance to private new 
community developers and State land development agencies, or State 
and local public bodies and agencies to assist them in connection with 
planning and carrying out new community development programs. 
Appropriation. 
SPECIAL PLANNING ASSISTANCE 
SEC. 720. (a) The Secretary may, until June 30, 1975, enter into 
agreements with private new community developers and State land 
development agencies to provide financial assistance, in amounts, not 
exceeding two-thirds of the estimated cost of such work, for planning 
new community development programs, including planning work 
which he determines will have special A^alue in assuring that new 
community development programs (1) will be fully responsive to social 
or environmental problems related to the public purposes of new 
community development, or (2) will adequately provide for, or encour-
age the use of, new or advanced technology in support of program 
objectives. 
(b) The Secretary shall enter into agreements under this section 
only with respect to new community development programs which 
had been approved or are being actively considered for approval, 
having met such initial feasibility criteria as the Secretary may have 
prescribed, and, in the case of private new community develoj>ers, 
only with respect to planning work which the Secretary determines 
is in excess of that which would ordinariljr be needed to establish final 
market, financial, and engineering feasibility for j)rograms or projects 
of similar size and scope not subject to the special purposes of this 
part. The financial assistance extended pursuant to such agreements 
shall be subject to such terms and conditions, which, in the case of 
private new community developers, may include provisions for repay-
ment where appropriate, as the Secretary may prescribe. 
(c) There are authorized to be appropriated for financial assistance 
under this section not to exceed $5,000,000, which limit shall be 
increased by $5,000,000 on July Ij 1971. Any amount appropriated 
under this section shall remain available until expended. 
84 STAT. ] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1801 
FEES AND CHARGES 
SEC. 721. The Secretary is authorized to establish and collect fees 
for guarantees under this part, and may make such charges in connec-
tion with guarantees, loans, and technical and other assistance under 
this part as he considers reasonable for the analysis of applications, 
appraisals, inspections, and other activities related to such assistance. 
On or before March 1, 1973, the Secretary shall make a report to the 
Report to con-
Congress concerning the fees and charges for guarantees under this ^''®^^* 
part that he estimates will be adequate to provide income sufficient for 
a self-supporting guarantee program and concerning the relationship 
of other charges to costs incurred under this part. 
ENCOURAGEMENT OF SMALL BUILDERS 
SEC. 722. The Secretary shall adopt such requirements as he deems 
necessary to assure that new community assistance under this part 
will (1) help maintain a diversified, local homebuilding industry; 
(2) increase the capability of all segments of the homebuilding 
industry, including both small and large producers, to participate, 
through an increased supply of building sites at reasonable costs and 
through improved technology, in producing the needed, large volume 
of well-designed, inexpensive housing; and (3) encourage broad par-
ticipation by the homebuilding industry, particularly small builders. 
N E W 
C O M M U N I T Y 
DEMONSTRATION 
PROJECTS 
SEC. 723. Upon specific authorization by the President and under 
applicable Federal law respecting the use of federally owned lands, 
the Secretary, utilizing funds made available for the purpose by the 
Congress, is authorized to plan and carry out large-scale projects 
demonstrating the development of new communities, which shall be 
designed to contribute to the achievement of the purposes of this part 
and serve as models for new^ community developments which could 
feasibly be carried out by other public and private developers. 
REAL PROPERTY TAXATION 
SEC. 724. Nothing in this part shall be construed to exempt any real 
property that may be acquired and held by the Secretary as a result 
of the exercise of lien or subrogation rights from real property taxa-
tion to the same extent, according to its value, as other real property 
is taxed. 
AUDIT BY GENERAL ACCOUNTING 
OFFICE 
SEC. 725. Insofar as they relate to any guarantees, loans, or grants 
made pursuant to this part, the financial transactions of recipients of 
Federal assistance may be audited by the General Accounting Office 
under such rules and regulations as may be prescribed by the Comp-
troller General of the United States. The representatives of the Gen- 
Records, access. 
eral Accounting Office shall have access to all books, accounts, records, 
reports, files, and all other papers, things, or property belonging to 
or in use by such recipients pertaining to such financial transactions 
and necessary to facilitate the audit. 
GENERAL PROVISIONS 
SEC. 726. In the performance of, and with respect to, the functions, 
P°wers. 
powers, and duties vested in him by this part, the Secretary, in addi-
tion to any authority otherwise vested in him, shall— 
(1) have the functions, powers, and duties (including the 
1802 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 STAT. 
authority to issue rules and regulations) set forth in section 402, 
except subsections (c) (2), (c) (4), (d), and (f), of the Housing 
73^stau68?/ 
^^^ ^^ ^^^^' P'TOvlded, That subsection (a)(1) of section 402 
1
2 use i7'49a. 
shall uot apply with respect to functions, powers, and duties under 
section 719 of this part; 
(2) have the power, notwithstanding any other provision of 
law, in connection with any assistance under this part, whether 
before or after any default, to provide by contract for the 
extinguishment upon default of any redemption, equitable, legal, 
or other right, title, or interest of the private new community 
developer or State land development agency in any mortgage, 
deed, trust, or other instrument held by or on behalf of the Secre-
tary for the protection of the security interests of the United 
States; and 
(3) have the power to foreclose on any property or commence 
any action to protect or enforce any right conferred upon him by 
law, contract, or other agreement, and bid for and purchase at any 
foreclosure or other sale any property in connection with which 
he has provided assistance pursuant to this part. In the event of 
any such acquisition, the Secretary may, notwithstanding any 
other provision of law relating to the acquisition, handling, or 
disposal of real property by the United States, complete, 
administer, remodel and convert, dispose of, lease, and otherwise 
deal w^ith, such property. Notwithstanding any other provision of 
law, the Secretary shall also have power to pursue to final col-
lection by way of compromise or otherwise all claims acquired by 
him in connection with any security, subrogation, or other rights 
obtained by him in administering this part. 
TECHNICAL AND CONFORMING 
PROVISIONS 
SEC. 727. (a) No bonds, debentures, notes, or other obligations shall 
be guaranteed under title IV of the Housing and Urban Development 
82 Stat. 513. 
^p|- Q
-
f -
[
^
Q
g
g after the effective date of this part except pursuant to an 
offer or commitment to guarantee, or a project approval, made before 
that date: Provided^ That a new community developer whose new 
community development project has, as of the effective date of this 
part, been approved by the Secretary under title IV shall be eligible 
with respect to obligations thereafter issued by him for guarantee 
assistance as authorized either by title IV or by this part, and such 
guarantee assistance may be given without a further determination by 
the Secretary under sections 712 and 716(a) of this part. If the Secre-
tary finds that an applicant for title 'IV assistance has submitted com-
plete financial and internal development plans and related materials 
42 use 3903. 
pursuaut to section 404 of such title IV, or major elements of such 
plans or materials, the Secretary may accept such plans and materials 
or major elements, respectively, as fully or partially satisfying the 
requirement under this part for the submission of a new" community 
development program. All receipts, funds, or other assets and all liabil-
ities of the revolving fund established pursuant to section 407 of the 
42 use 3906. 
Housing and Urban Development Act of 1968 (including liabilities 
arising under guarantees made pursuant to such title IV and this 
section) shall become and be assets and liabilities of the revolving fund 
established pursuant to this part, as if such assets and liabilities had 
been received or incurred pursuant to this part, and shall be paid 
over, held, and accounted for accordingly. 
82'^stat!5*i8!'*' 
(^) Sectiou 202(b)(4) of the Housing Amendments of 1955 is 
42 use 1492. 
amended by adding before the period at the end thereof "or under 
part B of the Urban Growth and New Community Development Act 
of 1970". 
84 STAT. ] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1803 
(c) The first paragraph of section 24 of the Federal Eeserve Act ga^statrsi"^' 
is amended by inserting the following before the period at the end 
1
2 use an. 
of the fourth sentence thereof: "or under part B of the Urban Growth 
and New Community Development Act of 1970". 
(d) The twelfth paragraph of section 5(c) of the Homeowners' 
Loan Act of 1933 is amended by adding in the last sentence imme- 
^2 stau M^S^. 
diately after "under title IV of the Housing and Urban Development 
Act of 1968" the words "or under part B of the LTrban Growth and 
New Community Development Act of 1970". 
(e) Section 701 of the Housing Act of 1954 is amended by— 
H us^c 46^^.' 
(1) striking out the word "approved" in subsection (a) (4) 
and adding before the semicolon at the end of such subsection "or 
under part B of the L^rban Growth and New Community Develop-
ment Act of 1970"; 
(2) inserting in subsection (b) after "(2) areas described in" 
the following: "subsection (a) (4) or"; and 
(3) striking out the "No" at the beginning of the third sentence 
of subsection (b) and inserting in lieu thereof "Except for plan-
ning for areas described in subsection (a) (4), no". 
(f) All laborers and mechanics employed by contractors or sub- j^^h^an^c" ^a e-
contractors in land development assisted under this part shall be 
paid wages at rates not less than those prevailing on similar construc-
tion in the locality as determined by the Secretary of Labor in 
accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a— 
276a-5). No assistance shall be extended under this part for any land 
'^^ ^'^'* ^°i^' 
development without first obtaining adequate assurance that these 
labor standards will be maintained upon the construction work 
involved in such program. The Secretary of Labor shall liave, with 
respect to the labor standards specified in this section, the authority 
and functions set forth in Reorganization Plan Numbered 14 of 1950 
(64 Stat. 1267), and section 2 of the Act of June 13, 1934 (40 U.S.C. 
^ "^^ ^^P-
276c). 
^^ ^
*
^
*
^
* •^°^* 
(g) With respect to any obligation issued by or on behalf of any 
State land development agency for which the issuer has elected to 
receive the benefits of the guarantees provided under this part, the 
interest paid on such obligation and received by the purchaser thereof 
(or his successor in interest) shall be included in gross income for the 
purposes of chapter 1 of the Internal Revenue Code of 1954. 
^SA stat. 3. 
^ 
r 
L- 
26 use 1. 
JOINT FUXDIXG 
SEC. 728. Funds made available under any Federal assistance pro-
gram for projects or activities approved as part of, or pursuant to, a 
new community development program may be used jointly with funds 
made available for such projects or activities under any other Federal 
assistance program, subject to regulations prescribed by the President. 
Such regulations may include provisions for common technical or 
administrative requirements where varying or conflicting provisions 
of law would otherwise apply, for establishing joint management 
funds and common non-Federal shares, and for special agreements, 
or delegations of authority, among different Federal agencies in con-
nection with the supervision or administration of assistance. Such 
regulations shall in any case include appropriate criteria and pro-
cedures to assure that any special authorities conferred, which are not 
otherwise provided for by law, shall be employed only as necessary to 
promote effective and efficient administration and in a manner con-
sistent with the protection of the Federal interest and program pur-
poses or statutory requirements of a substantive nature. For purposes 
of this section, the term "Federal assistance program" has the same 
meaning as under the Intergovernmental Cooperation Act of 1968. 
H use 420T' 
1804 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 
STAT. 
Establishment. 
Membership. 
83 Stat. 864. 
C ompensation; 
travel expenses. 
80 Stat. 499; 
83 Stat. 190. 
Functions. 
COMMUNITY DEVELOPMENT 
CORPORATION 
SEC. 729. (a) There is hereby created within the Department of 
Housing and Urban Development a body corporate to be known as 
the Community Development Corporation which shall carry out its 
functions subject to the direction and supervision of the Secretary. 
(b) The Corporation shall have a Board of Directors (hereinafter 
referred to as the "Board") which shall consist of five members as 
follows: 
(1) the Secretary, who shall be Chairman of the Board; 
(2) one person, to be appointed by the President by and with 
the advice and consent of the Senate, who shall serve at the pleas-
ure of the President, shall be the General Manager of the Corpo-
ration, serving as its chief executive officer under the Board's 
general direction, and shall receive compensation at the rate pro-
vided for positions at level IV of the Executive Schedule (5 
U.S.C. 5315); and 
(3) three persons, to be appointed by the Secretary, who shall 
serve at his pleasure, but not more than one such person shall be 
selected from among officers or employees of the Department of 
Housing and Urban Development. 
Members of the Board who are regular, full-time officers or employees 
of the Federal Government shall receive no additional compensation 
for their services as Board members. Other members shall receive for 
their services as members, when engaged in the performance of their 
duties, the per diem equivalent to the rate for level IV of the Federal 
Executive Salary Schedule under section 5315 of title 5 of the United 
States Code, Each member of the Board shall be allowed travel 
expenses, including per diem in lieu of subsistence, as authorized by 
section 5703 of such title for persons in the Government service 
employed intermittently. 
(c) The functions of the Secretary with respect to guarantees and 
loans in aid of new community development under this part shall be 
administered through the Community Development Corporation, and 
the Corporation shall perform such additional functions, powers, and 
duties as the Secretary may prescribe from time to time. 
PART C—DEVELOPMENT OF RATIONAL URBAN GROWTH PATTERNS 
82 Stat, 526. 
40 u s e 461. 
STATE AND REGIONAL PLANNING 
SEC. 735. Section 701 of the Housing Adt of 1954 is amended by add-
ing at the end thereof the following new subsection : 
" (j) In carrying out the provisions of this section relating to plan-
ning for States, regions, or other multijurisdictional areas whose devel-
opment has significance for purposes of national growth and urban 
development objectives, the Secretary shall encourage the formulation 
of plans and programs which will include the studies, criteria, stand-
ards, and implementing procedures necessary for effectively guiding 
and controlling major decisions as to where growth should take place 
w^ithin such States, regions, or areas. Such plans and programs shall 
take account of the availability of and need for conserving land and 
other irreplaceable natural resources; of projected changes in size, 
movement, and composition of population; of the necessity for expand-
ing housing and employment opportunities; of the opportunities, 
requirements, and possible locations for, new communities and large-
scale projects for expanding or revitalizing existing communities; and 
of the need for methods of achieving modernization, simplification, 
and improvements in governmental structures, systems, and proce-
dures related to growth objectives. If the Secretary determines that 
84 STAT. ] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1805 
activities otherwise eligible for assistance under this section are neces-
sary to the development or implementation of such plans and pro-
grams, he may make grants in support of such activities to any 
governmental agency or organization of public officials which he deter-
mines is capable of carrying out the planning work involved in an 
effective and efficient manner and may make such grants in an amount 
equal to not more than 75 per centum of the cost of such activities." 
PART D—DEVELOPMENT OF INNER CITY AREAS 
PURPOSE 
SEC. 740. It is the purpose of this part to provide our cities, which 
urgently need to augment their inventories of housing (particularly 
housing for low and moderate income families) and to find sites for 
essential public facilities and additional sources of employment, but 
have virtually no vacant land upon which to build, with a program 
which will make possible the more rational use of urban land and 
space that is currently occupied by industrial or commercial uses 
which though not physically blighted are functionally obsolete or 
uneconomic, or of land and space that is not usable in its present state 
because of natural hazards or inadequate development, so that in 
appropriate cases major rebuilding projects (including new communi-
ties in town) may be undertaken without major residential clearance 
activities and with minimal displacement. 
AMENDMENTS TO TITLE I OF T H E HOUSING ACT OF 1 9 4 9 
SEC. 741. (a) The proviso in section 103(a)(1) of such Act is 
63 stat. 4i6; 
amended by inserting after "open land" the following: "(other than 
42 use 1453. 
land within the purview of section 110(c) (1) (v)),". 
(c) Section 110(c) (7) of such Act is amended to read as follows: 82^stlt?5'24!^' 
"(7) Construction of foundations and platforms necessarj^ for the 
42 use i46o. 
development of air rights sites in accordance with the provisions of 
clause (iv) or (v) of paragraph (1) of this subsection." 
TITLE VIII—FARM HOUSING 
HOUSING AND RELATED FACILITIES FOR DOMESTIC FARM LABOR 
SEC. 801. (a) That part of the text of subsection (a) of section 514 
of the Housing Act of 1949 which precedes the first numbered para- 
^s suu ^i^e^.^ 
graph is amended to read as follows: "The Secretary is authorized to 
insure and make commitments to insure loans made by lenders other 
than the United States to the owner of any farm or any association of 
farmers for the purpose of providing housing and related facilities 
for domestic farm labor, or to any State (or political subdivision 
thereof), or any broad-based public or private nonprofit organization 
or any nonprofit organization of farmworkers incorporated within 
the State for the purpose of providing housing and related facilities 
for domestic farm labor any place within the State where a need exists. 
All such loans shall be made in accordance with terms and conditions 
substantially identical with those specified in section 502, except 
that—". 
(b) Section 110 (c) (1) of such Act is amended— 
rsltlf 78?°^^' 
(1) by inserting before the first proviso the following: ", or 
42 use u'eo. 
(v) land or space which is vacant, unused, underused, or inappro-
priately used (including infrequently used rail yards and rail 
storage facilities, and excessive or vacated railroad rights-of-
way; air rights over streets, expressways, railroads, waterways, 
1806 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 STAT. 
and similar locations; land which is occupied by functionally-
obsolete nonresidential buildings or is used for low-utility pur-
poses or is covered by shallow water or is subject to periodic flood-
ing or consists of unused or underused slips or dock areas or other 
waterfront property; which land or space the Secretary deter-
mines may be developed (at a cost reasonably related to the public 
purpose to be served) without major residential clearance activi-
ties, and with full consideration to the preservation of beneficial 
aspects of the urban and natural environment, for such uses as 
are consistent with emphasis on housing for low- and moderate-
income families, including the provision of schools, hospitals, 
parks, and other essential public facilities, and, where appropri-
ate, all uses associated with new communities in town or similar 
large scale undertakings related to inner city needs, including 
concentrated sources of employment"; and 
78^stT** ^°^^' 
^^^ • ^^ striking "clauses (iii) and _(iv)" in the first proviso and 
4
2 use Y460. 
inserting in lieu thereof "clauses (iii), (iv), and (v)^'. 
7s Stat. 186. 
(b) Section 514(a) of such Act is amended bv striking out in para-
"" '""^ '"" 
^raph (2) "5 per centum" and inserting in lieu thereof "1 per centum". 
(c) Paragraphs (1) and (2) of section 514(f) j and paragraph (1) 
of section 516(g) are amended by inserting "(including household 
furnishings)" after "structures", each place the term appears. 
(d) Section 516 of such Act is amended— 
(1) by striking out that part of the text of subsection (a)_ which 
precedes the first numbered paragraph and inserting in lieu 
thereof the following: "Upon the application of any State or 
political subdivision thereof, or any broad-based public or private 
nonprofit organization incorporated within the State, or any non-
profit organization of farmworkers incorporated within the State, 
the Secretary is authorized to provide financial assistance for the 
provision of low-rent housing and related facilities (which may 
be located any place within the State) for domestic farm labor, 
if he finds that—"; 
(2) by striking out in paragraph (2) of subsection (a) "one-
third" and inserting in lieu thereof "10 per centum"; 
(3) by inserting after "thereof" in paragraph (3) of subsection 
(a) the following: ", and such housing and facilities shall be 
durable and suitable for vear-around occupancy or use, unless 
the Secretary finds that there is no need tor such year-around 
occupancy or use in that area;" and 
(4) by striking out in subsection (b) "two-thirds" and insert-
ing in lieu thereof "90 per centum". 
42 u s e 1484. 
78 Stat. 798. 
42 u s e 1486. 
75 Stat. 186. 
42 u s e 1471. 
RURAL HOUSING LOANS ON NONFARM LEASEHOLDS 
SEC. 802. Section 501(b) (2) of the Housing Act of 1949 is amended 
by striking out "this title, the terms 'owner, 'farm', and 'mortgage' 
shall be deemed to include, respectively, the lessee of, the land included 
in" and inserting in lieu thereof the following: "sections 502 and 504, 
the terms 'owner' and 'mortgage' shall be deemed to include, respec-
tively, the lessee of". 
MISCELLANEOUS FARM HOUSING 
AMENDMENTS 
SEC. 803. (a) The second sentence of section 504(a) of the Housing 
63^stat^. 434; 
A.ct of 1949 is amended by striking out "in excess of $1,500" and 
4
2 use 1474. 
inserting in lieu thereof "in excess of $2,600, or in excess of such larger 
amount not exceeding $3,500 as the Secretary determines to be neces-
sary in the case of repairs or improvements involving water supply, 
septic tank, or bathroom or kitchen plumbing facilities". 
84 STAT. ] 
PUBLIC LAW 91^09-DEC. 31, 1970 
1807 
(b) Section 508(b) of such Act is amended by striking out "shall" 
"usc^'ms' 
wherever it appears in the first and second sentences and inserting in 
lieu thereof "may". 
(c) Section ol5(b)(l) of such Act is amended by striking out 
76stat. 67i; 
"$300,000" and inserting in lieu thereof "$750,000". 
^^fus Jf485. 
(d) Section 517(j) (3) of such Act is amended by inserting after 
79 stat. 499.' 
"collections" the following: "or necessary to obtain credit reports 
42 use i487. 
on applicants or borrowers". 
(e) Section 520 of such Act is amended by striking out "5,500" and 
^^ ^tau 5
0
^
2
^ 
inserting in lieu thereof "10,000". 
TITLE IX—MISCELLANEOUS 
LIABILITY OF FNMA TO UNITED STATES 
SEC. 901. (a) In accordance with the provisions of section 303(a) 
of the National Housing Act concerning payment of a prescribed 82^ltrt^5'3V^' 
part of the general surplus and reserves of the corporation, the Fed- 
1
2 use 1718. 
eral National Mortgage Association shall pay to the Secretary of the 
Treasury $52,386,117. 
(b) In accordance with the provisions of section 309(c) of the ^Jncome tax, pay-
National Housing Act as it existed prior to September 1, 1968, the 
12 use 1723a. 
Federal National Mortgage Association shall pay to the Secretary 
of the Treasury the remaining income tax equivalent of $16,479,604, 
plus interest (1) on $2,977,442 at the rate of 6 per centum from Sep-
tember 16, 1967, until the date of payment; (2) on $13,442,424 at the 
rate of 6 per centum from September 16, 1968, until the date of pay-
ment; and (3) on $59,738 at 6 per centum from November 16, 1968, 
until the date of payment. 
(c) The receipt by the Secretary of the Treasury of the amounts 
required to be paid by subsections (a) and (b) of this section shall 
constitute a full and final settlement of all matters affected by such 
subsections. The United States shall be made a party defendant in 
any case against any person who is, has been, or may be a director, 
officer, employee, or agent of the Federal National Mortgage Associ-
ation because of any action taken pursuant to subsection (a) or (b) 
of this section, and any judgment awarded the Federal National 
Mortgage Association shall be paid in the same manner as a judgment 
against the United States. 
(d) Section 302(a) of the National Housing Act, as amended, is 82^stat^5'36^^' 
further amended by adding at the end thereof the following new 
12 use 1717. 
paragraph: 
"(3) The partition transaction effected pursuant to the foregoing 
paragraph constitutes a reorganization within the meaning of section 
368(a)(1)(E) of the Internal Revenue Code of 1954; and for the 
siljlc^iesf' 
purposes of such Code, no gain or loss is recognized by the previously 
existing body corporate by reason of the partition, and the basis and 
holding period of the assets of the corporation immediately following 
such partition are the same as the basis and holding period of such 
assets immediately prior to such partition." 
(e) Section 810(a) of the Housing and Urban Development Act of 
1968 is amended by adding at the end thereof the follow^ing sentence: 
^2 stat. 545. 
"For the purposes of the Internal Revenue Code of 1954, no gain or note."^^ ^7i6h 
loss is recognized by the holders of such stock on such change, and the 
68A stat. 3. 
basis and holding period of such stock in the hands of the stock- 
^^ ^^^ ^' 
holders immediately after such change are the same as the basis and 
holding period of such stock in their hands immediately prior to such 
change." 
1808 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 STAT. 
68 Stat. 613; 
75 Stat. 176; 
79 Stat. 501. 
12 u s e 1718 
PURCHASE OF F N M A STOCK 
SEC. 902. Section 303(b) 
of the National Housing Act is 
amiended— 
(1) by striking out "shall accumulate" and inserting in lieu 
thereof "may accumulate"; 
(2) by striking out "and other"; 
(3) by striking out "nor less than 1 per centum"; and 
(4) by inserting "with the approval of the Secretary of Hous-
ing and Urban Development" immediately after "as determined 
from time to time by the corporation". 
82 Stat. 490. 
12 u s e 1701X. 
SO Stat. 888. 
42 u s e 1430. 
48 Stat. 1246. 
12 u s e 1701 and 
note. 
Appropriation. 
50 Stat. 888. 
42 u s e 1402. 
ADVICE 
AND 
ASSISTANCE 
W I T H 
RESPECT 
TO HOUSING 
FOR 
LOW- 
AND 
MODERATE-INCOME 
FAMILIES 
SEC. 903. (a) Subsection (a) of section 106 of the Housing and 
Urban Development Act of 1968 is amended to read as follows: 
"(a) (1) The Secretary is authorized to provide, or contract with 
public or private organizations to provide, information, advice, and 
technical assistance, including but not limited to— 
"(i) the assembly, correlation, publication, and dissemination 
of information with respect to the construction, rehabilitation, 
and operation of low- and moderate-income housing; 
"(ii) the provision of advice and technical assistance to public 
bodies or to nonprofit or cooperative organizations with respect 
to the construction, rehabilitation, and operation of low- and 
moderate-income housing, including assistance with respect to 
self-help and mutual self-help programs; 
"(iii) counseling on household management, self-help, budget-
ing, money management, child care, and related counseling serv-
ices which would assist low- and moderate-income families 
receiving assistance under the United States Housing Act of 1937 
or the National Housing Act in improving their living condi-
tions and housing opportunities, and in meeting the responsi-
bilities of homeownership. 
"(2) There is authorized to be appropriated for the purposes of 
this subsection, without fiscal year limitation, not to exceed $5,000,000. 
Any amounts so appropriated shall remain available until expended." 
(b) The first sentence of section 106(b) (1) of such Act is amended 
by striking out "any federally assisted program" and inserting in lieu 
thereof "section 235 of the National Housing Act or any other fed-
erally assisted program". 
(c) Section 2(6) of the United States Housing Act of 1937 is 
amended by adding at the end thereof the following: "The term also 
means the financing of tenant programs and services for families 
residing in low-rent 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 devel-
opment and maintenance of tenant organizations which participate in 
the management of low-rent housing projects; the training of tenants 
to manage and operate such projects and the utilization of their serv-
ices 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 pro-
viding a wholesome living environment; and referral to appropriate 
agencies when necessary for the provision of such services. To the 
84 STAT. ] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1809' 
maximum extent available and appropriate, existing public and pri-
vate agencies in the community shall be used for the provision of such 
services." 
(d) Section 15(10) of the United States Housing Act of 1937 is 
R«P««I-
1 1 
82 Stat. 503* 
repealed. 
42 u s e 1415. 
83 Stat. 393. 
20 u s e 803. 
TRAIXING IN HOUSING MANAGEMENT 
SEC. 904. Section 803 of the Housing Act of 1964 is amended by 
redesignating subsections (b) and (c) as subsections (c) and (d), 
respectively, and inserting after subsection (a) a new subsection as 
follows: 
"(b) Grants may be made under subsection (a) to support (1) 
the training of persons, especially persons of low income, in acquiring 
the skills needed in the management of housing for low- and moderate-
income persons, and (2) research and the dissemination of informa-
tion with respect to the problems involved in the management of 
housing for low- and moderate-income persons.'' 
GENERAL ADMINISTRATIVE POWERS OF THE SECRETARY 
SEC. 905. Section 7 of the Department of Housing and Urban Devel-
opment Act is amended by adding at the end thereof the following 
^"f®* P* 1^75. 
new subsections: 
"(h) Except as such authority is otherwise expressly provided in 
any other Act administered by the Secretary, such financial transac-
tions of the Secretary as the making of loans or grants (and vouchers 
approved by the Secretary in connection with such financial transac-
tions) shall be final and conclusive upon all officers of the Government. 
Funds made available to the Secretary pursuant to any provision of 
law for such financial transactions shall be deposited in a checking 
account or accounts with the Treasurer of the United States. Such 
funds and any receipts and assets obtained or held by the Secretary 
in connection with such financial transactions shall be available, in 
such amounts as may from year to year be authorized by the Congress, 
for the administrative expenses of the Secretary in connection with 
such financial transactions. Notwithstanding the provisions of any 
other law, the Secretary may, with the approval of the Comptroller 
General, consolidate into one or more accounts for banking and check-
ing purposes all cash obtained or held in connection with such financial 
transactions, including amounts appropriated, from whatever source 
derived. 
" (i) Except as such authority is otherwise expressly provided in any 
other Act administered by the Secretary, the Secretary is authorized 
to— 
"(1) foreclose on any property or commence any action to 
protect or enforce any right conferred upon him by any law, con-
tract, or other agreement, and bid for and purchase at any 
foreclosure or any other sale any property in connection with 
which he has made a loan or grant. In the event of any such 
acquisition, the Secretary may, notwithstanding any other provi-
sion of law^ relating to the acquisition, handling, or disposal of 
real property by the United States, complete, administer, remodel 
and convert, dispose of, lease, and otherwise deal with, such prop-
erty : Provided^ That any such acquisition of real property shall 
not deprive any State or political subdivision thereof of its civil 
or criminal jurisdiction in and over such property or impair the 
civil rights under the State or local laws of the inhabitants on 
such property: Provided 
further^ That section 3709 of the 
Revised Statutes shall not apply to any contract for services or 
4i use 5. 
1810 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 STAT. 
F e e s . 
Gifts, accept-
ance. 
Property, taxable 
status. 
Moneys, 
ment. 
invest-
Consultants. 
Compensation; 
travel expenses. 
80 Stat. 499; 
83 Stat. 190. 
supplies on account of any property so acquired or owned if the 
amount of such contract does not exceed $2,500; 
"(2) enter into agreements to pay annual sums in lieu of taxes 
to any State or local taxing authority with respect to any real 
property so acquired or owned; 
"(3) sell or exchange at public or private sale, or lease, real or 
personal property, and sell or exchange any securities or obliga-
tions, upon such terms as he may fix; 
"(4) obtain insurance against loss in connection with property 
and other assets held ; 
"(5) consent to the modification, with respect to the rate of 
interest, time of payment of any installment of principal or inter-
est, security, or any other term of any contract or agreement to 
which he is a party or which has been transferred to him; and 
" (6) include in any contract or instrument such other covenants, 
conditions, or provisions as he may deem necessary. 
"(j) Notwithstanding any other provision of law the Secretary is 
authorized to establish fees and charges, chargeable against program 
beneficiaries and project participants, which shall be adequate to cover 
over the long run, costs of inspection, project review and financing 
service, audit by Federal or federally authorized auditors, and other 
beneficial rights, privileges, licenses, and services. Such fees and 
charges heretofore or hereafter collected shall be considered nonad-
ministrative and shall remain available for operating expenses of the 
Department in providing similar services on a consolidated basis. 
" (k) (1) The Secretary is authorized to accept and utilize voluntary 
and uncompensated services and accept, hold, administer, and utilize 
gifts and bequests of property, both real and personal, for the pur-
pose of aiding or facilitating the work of the Department. Gifts and 
bequests of money and the proceeds from sales of other property 
received as gifts or bequests shall be deposited in the Treasury in a 
separate fund and shall be disbursed upon order of the Secretary. 
Property accepted pursuant to this paragraph, and the proceeds 
thereof, shall be used as nearly as possible in accordance with the 
terms of the gift or bequest. 
"(2) For the purpose of Federal income, estate, and gift taxes, 
property accepted under paragraph (1) shall be considered as a gift 
or bequest to or for use of the United States. 
"(3) Upon the request of the Secretary, the Secretary of the Treas-
ury may invest and reinvest in securities of the United States or in 
securities guaranteed as to principal and interest by the United States 
any moneys contained in the fund provided for in paragraph (1). 
Income accruing from such securities and from any other property 
held by the Secretary pursuant to paragraph (1) shall be deposited 
to the credit of the fund and shall be disbursed upon order of the 
Secretary. 
"(1) The Secretary is authorized to appoint, without regard to tlie 
civil service laws, such advisory committees as shall be appropriate 
for the purpose of consultation with and advice to the Department in 
performance of its functions. Members of such committees, other than 
those regularly employed by the Federal Government, while attend-
ing meetings of such committees or otherwise serving at the request 
of the Secretary, may be paid compensation at rates not exceeding 
those authorized for individuals under subsection (e) of this section, 
and while so serving away from their homes or regular places of 
business, may be allowed travel expenses, including per diem in lieu 
of subsistence, as authorized by section 5703 of title 5, LTnited States 
Code, for persons in the Government service employed intermittently.*' 
84 STAT. ] 
PUBLIC LAW 91^09-DEC. 31, 1970 
1811 
INCREASED FEES FOR CONSULTANT SERVICES 
SEC. 906. Section 7(e) of the Department of Housing and Urban 
Development Act is amended by striking out everything after the ^9 stat. 669. 
word "rates" and inserting in lieu thereof the following: "for indi-
viduals not to exceed the per diem equivalent to the highest rate for 
grade GS-18 of the General Schedule under section 5332 of title 5, 
United States Code." 
Ante, p. i98-1. 
SAVINGS AND LOAN ASSOCIATIONS 
SEC. 907. (a) Section 12(b) of the Federal Home Loan Bank Act 
(12 U.S.C. 1432(b)) is amended by adding at the end a new sentence 
§2 stat. 609. 
as follows: "This authority extends to the acquisition, holding, and 
disposition of loans, or interests therein, having the benefit of any 
guaranty under section 221 or 222 of the Foreign Assistance Act of 
1961, as amended by section 105 of the Foreign Assistance Act of 
83 stat. 807. 
1969 or as hereafter amended or extended, or of any commitment or 218^2.^^*^ ^^^^' 
agreement for any such guaranty." 
(b) Section 5 (c) of the Home Owners' Loan Act of 1933 (12 U.S.C 
1464(c)) is amended by inserting after the period following "section 
48 stat. 132; 
224 of such Act, or any commitment or agreement with respect to such ^^ ^
*
^
*
* ^°^* 
loans, or interests therein, made pursuant to either of such sections" a 
new sentence as follows: "This authority extends to the acquisition, 
holding, and disposition of loans, or interests therein, having the bene-
fit of any guaranty under section 221 or 222 of the Foreign Assistance 
Act of 1961, as amended by section 105 of the Foreign Assistance 
Act of 1969 or as hereafter amended or extended, or of any com-
mitment or agreement for any such guaranty." 
(c) The first sentence of section 5(c) of the Home Owners' Loan 
Act of 1933 is amended by striking out "15" and inserting in lieu 
thereof "20". 
FINANCIAL INSTITUTIONS SUPERVISORY ACT OF 19 6(5 
SEC. 908. Title IV of the Financial Institutions Supervisory Act of 
Repeal. 
1966 (80 Stat. 1056) is repealed. 
I N T E R S T A T E L A N D S A L E S FULL DISCLOSURE ACT 
SEC. 909. Section 1406(5) of the Interstate Land Sales Full Dis-
closure Act is amended by inserting after the first comma the follow- 
^^ st^a^ 593. 
ing: "the existence of any unusual conditions relating to noise or 
""" ' "" 
safety which affect the subdivision and are known to the developer,". 
15 u s e 1705. 
ELIGIBILITY OF AMERICAN SAMOA BANKS FOR FEDERAL DEPOSIT INSURANCE 
SEC. 910. (a) Subsection (a) of section 3 of the Federal Deposit 
Insurance Act, as amended (12 U.S.C. 1813 (a)), is further amended 
^4 stat. 873; 
by inserting the words American Samoa," after the w^ord "Guam," 
each place it appears therein. 
(b) Subsection (d) of section 3 of the Federal Deposit Insurance 
Act, as amended (12 U.S.C. 1813(d)), is further amended by inserting 
the words "American Samoa," after the word "Guam,". 
(c) Subsection (e) of section 3 of the Federal Deposit Insurance 
Act, as amended (12 U.S.C. 1813 (e)), is further amended by inserting 
the words "American Samoa," after the word "Guam,". 
(d) Paragraph (5) of subsection (1) of section 3 of the Federal 
Deposit Insurance Act, as amended (12 U.S.C. 1813(1) (5)), is further 
74 stat. 546. 
amended by inserting the words "American Samoa," after the word 
"Guam,". 
47-348 O - 72 - 31 (Pt. 2) 
1812 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 STAT. 
(e) Subsection (m) of section 3 of the Federal Deposit Insurance 
64 Stat. 873; 
Act, R
S amended (12 U.S.C. 1813 (m)), is further amended by insert-
70 Stat. 908. 
jj^g ^j^g words "of American Samoa," after the word "Guam,". 
(f) Subsection (o) of section 3 of the Federal Deposit Insurance 
Act, as amended (12 U.S.C. 1813 (o)), is further amended by inserting 
the words "American Samoa," after the word "Guam,". 
(g) Paragraph (4) of subsection (a) of section 7 of the Federal 
74 Stat. 547. 
Deposit lusurance Act, as amended (12 U.S.C. 1817(a) (4)), is further 
amended by inserting the words "American Samoa," after the word 
"Guam,". 
(h) Subparagraph (B) of paragraph (5) of subsection (b) of sec-
tion 7 of the Federal Deposit Insurance Act, as amended (12 U.S.C. 
1817(b) (5) (B)), is further amended by inserting the words "Ameri-
can Samoa," after the word "Guam,". 
SURETY BOND GUARANTEES 
SE€. 911. (a) Title IV of the Small Business Investment Act of 
_^_^^*A*-.482. 
1958 is amended—_ 
(1) by striking out the title heading and inserting in lieu 
thereof the following: 
15 u s e 692. 
15 use 633. 
"TITLE IV—GUAKANTEES 
"PART A—LEASE GUARANTEES"; 
(2) by striking out "this title", wherever it appears in sections 
401 and 402, and inserting in lieu thereof "this part" ; 
esulTiihrnLt""^' 
(3) by amending section 403 thereof to read as follows: 
"SEC. 403. There is hereby established a revolving fund for use by 
the Administration in carrying out the provisions of this part and 
part B of this title. Initial capital for such fund shall consist of not to 
exceed $10,000,000 transferred from the fund established under section 
^c f!^!^'}o^' 
4(^) ^^ ^^^ Small Business Act: Provided, That the last sentence of 
ic „or. ^o, 
such section 4(c) shall not apply to any amounts so transferred. Into 
the fund established by this section there shall be deposited all receipts 
from the guarantee programs authorized by this title. Moneys in 
such fund not needed for the payment of current operating expenses 
or for the payment of claims arising under such programs may be 
invested in bonds or other obligations of, or bonds or other obliga-
tions guaranteed as to principal and interest by, the United States; 
except that moneys provided as initial capital for such fund shall not 
be so invested but shall be returned to the fund established by section 
4(c) of the Small Business Act, in such amounts and at such times as 
the Administration determines to be appropriate, whenever the level 
of the fund herein established is sufficiently high to permit the return 
of such moneys without danger to the solvency of the programs under 
this title. The Administration shall pay into miscellaneous receipts of 
the Treasury, as of the close of each fiscal year, interest on the net 
outstanding disbursements of the initial capital from the fund, at 
rates determined by the Secretary of the Treasury, taking into con-
sideration the average yield on outstanding long-term, interest-bearing 
marketable public debt obligations of the United States as of the 
month of June preceding such fiscal year."; and 
(4) by adding at the end thereof the following: 
84 STAT. ] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1813 
"PART B—SURETY BOND GUARANTEES 
"DEFINITIONS 
"SEC. 410. As used in this part— 
" (1) The term 'bid bond' means a bond conditioned upon the bidder 
on a contract entering into the contract, if he receives the award 
thereof, and furnishing the prescribed payment bond and performance 
bond. 
" (2) The term 'payment bond' means a bond conditioned upon the 
payment by the principal of money to persons under contract with 
him. 
"(3) The term 'performance bond' means a bond conditioned upon 
the completion by the principal of a contract in accordance with its 
terms. 
" (4) The term 'surety' means the j)erson who (A) under the terms 
of a bid bond, undertakes to pay a sum of money to the obligee in the 
event the principal breaches the conditions of the bond, (B) under 
the terms of a performance bond, undertakes to incur the cost of 
fulfilling the terms of a contract in the event the principal breaches the 
conditions of the contract, or (C) under the terms of a payment bond, 
undertakes to make payment to all persons supplying labor and 
material in the prosecution of the work provided for in the contract 
if the principal fails to make prompt payment. 
"(5) The term 'obligee' means (A) in the case of a bid bond, the 
person requesting bids for the performance of a contract, or (B) 
m the case of a payment bond or performance bond, the person who 
has contracted with a principal for the completion of the contract and 
to whom the obligation of the surety runs in the event of a breach by 
the principal of the conditions of a payment bond or performance 
bond. 
"(6) The term 'principal' means (A) in the case of a bid bond, 
a person bidding for the award of a contract, or (B) the person pri-
marily liable to complete a contract for the obligee, or to make pay-
ments to other persons in respect of such contract, and for wnose 
performance of his obligation the surety is bound under the terms of a 
payment or performance bond. A principal may be a prime contractor 
or a subcontractor. 
"(7) The term 'prime contractor' means the person with whom the 
obligee has contracted to perform the contract. 
"(8) The term 'subcontractor' means a person who has contracted 
with a prime contractor or with another subcontractor to perform a 
contract. 
"AUTHORITY OF THE ADMINISTRATION 
"SEC. 411. (a) The Administration may, in consultation with the 
sureties. 
Secretary of Housing and Urban Development and upon such terms 
and conditions as it may prescribe, guarantee and enter into commit-
ments to guarantee any surety against loss, as hereinafter provided, as 
the result of the breach of the terms of a bid bond, payment bond, or 
performance bond by a principal on any contract up to $500,000 in 
Liability, umita-
amount, subject to the following conditions: 
"°"' <=°"ditionsi. 
"(1) The person who would be the principal of the bond is a small 
business concern. 
"(2) The bond is required in order for such person to bid on a 
contract, or to serve as a prime contractor or subcontractor thereon. 
"(3) Such person is not able to obtain such bond on reasonable 
terms and conditions without a guarantee under this section. 
"(4) The Administration determines that there is a reasonable 
1814 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 STAT. 
expectation that such person will perform the covenants and condi-
tions of the contract with respect to which the bond is required. 
"(5) The contract meets requirements established by the Admin-
istration for feasibility of successful completion and reasonableness 
of cost. 
"(6) The terms and conditions of any bond guaranteed under the 
authority of this part are reasonable in light of the risks involved and 
the extent of the surety's participation. 
"(b) Any contract of guarantee under this section shall obligate 
the Administration to pay to the surety a sum not to exceed 90 per 
centum of the loss incurred by the surety in fulfilling the terms of his 
contract as the result of the breach by the principal of the terms of a 
bid bond, performance bond, or payment bond. 
Fee. 
"(c) The Administration shall fix a uniform annual fee which 
it deems reasonable and necessary for any guarantee issued under this 
section, to be payable at such time and under such conditions as may be 
determined by the Administration. Such fee shall be subject to periodic 
review in order that the lowest fee that experience under the program 
shows to be justified will be placed into effect. The Administration shall 
also fix such uniform fees for the processing of applications for guaran-
tees under this section as it determines are reasonable and necessary to 
pay administrative expenses incurred in connection therewith. Any con-
tract of guarantee under this section shall obligate the surety to pay 
the Administration such portions of the bond fee as the Administra-
tion determines to be reasonable in the light of the relative risks and 
costs involved. 
11 f
r
c
^
A
* ^nt 
"(^) The provisions of section 402 shall apply in the administration 
01 this section. 
(b)(1) The Secretary of Housing and Urban Davelopment is 
authorized to take such steps and carry out such activities as he deter-
mines to be necessary or desirable to provide, either directly or by 
contract or other arrangement, technical assistance to any contractor 
or subcontractor for whom a bid, payment, or performance bond is 
guaranteed under part B of title IV of the Small Business Investment 
Ante, p. 1813. 
^^QI of 1958 iu connectlou with any construction contract, in order to 
assist such contractor or subcontractor in obtaining or carrying out 
such contract. 
(2) There are authorized to be appropriated for each of the first 
three fiscal years ending after the date of the enactment of this Act 
such sums, not to exceed $1,500,000, as may be necessary to enable the 
Secretary to carry out his functions under paragraph (1). 
EQUITY SKIMMING 
SEC. 912. Whoever, with intent to defraud, willfully engages in a 
pattern or practice of— 
(1) purchasing one- to four-family dwellings which are subject 
to a loan in default at time of purchase or in default within one 
year subsequent to the purchase and the loan is secured by a mort-
gage or deed of trust insured or held by the Secretary of Housing 
and Urban Development or guaranteed by the Veterans' Adminis-
tration, or the loan is made by the Veterans' Administration, 
(2) failing to make payments under the mortgage or deed of 
trust as the payments become due, and 
(3) applying or authorizing the application of rents from 
such dwellings for his own use, 
Penalty. 
shall be fined not more than $5,000 or imprisoned not more than three 
years, or both. This section shall apply to a purchaser of such a dwell-
ing, or a beneficial owner under any business organization or trust 
84 STAT. ] 
PUBLIC LAW 91-609-DEC. 31, 1970 
1815 
purchasing such dwelling, or to an officer, director, or agent of any such 
purchaser. Nothing in this section shall apply to the purchaser of only 
one such dwelling. 
REGULATION OF SAVINGS AND LOAN ASSOCIATIONS I N THE DISTRICT OF 
COLUMBIA 
SEC. 913. The Home Owners' Loan Act of 1933 is amended by add- 
48 stat. 128. 
ing immediately after section T the following new section: 
^^ ^^^ ^'*^^* 
"SEC. 8. (a) Without regard to any provision of law other than this 
section, ana without limitation on any other power or function now 
or hereafter vested in or exercisable b;y the Federal Home Loan Bank 
Board by or under this Act or otherwise^ the Board shall, with respect 
to all incorporated or unincorporated building, building or loan, build-
ing and loan, or homestead associations, and similar institutions, of 
or transacting or doing business in the District of Columbia, or main-
taining any office in the District of Columbia (other than Federal sav-
ings and loan associations), have the same powers and functions as to 
examination, operation, and regulation as are now or hereafter vested 
in or exercisable by it with respect to Federal savings and loan asso-
ciations by or under section 5 of this Act or otherwise, and all of the 
so stat. 1028. 
provisions of subsection (d) of section 5 of this Act as now or hereafter 
^2 use i464. 
m force shall be applicable with respect to such associations or 
institutions. 
"(b) Any such association or institution incorporated under the 
laws of, or organized in, the District of Columbia shall have in addi-
tion to any existing statutory authority such statutory authority as 
is from time to time vested in Federal savings and loan associations. 
"(c) Charters, certificates of incorporation, articles of incorpora-
tion, constitutions, bylaws, or other organic documents of associations 
or institutions referred to in subsection (b) of this section may, with-
out regard to anything contained therein or otherwise, hereafter be 
amended in such manner and to such extent and upon such vote or 
votes if any as the Federal Home Loan Bank Board may by regulation 
or otherwise provide. 
"(d) Nothing herein shall cause, or permit the Federal Home Loan 
Bank Board to cause. District of Columbia associations to be or become 
Federal savings and loan associations, or require the Board to impose 
on District ot Columbia associations the same regulations as are 
imposed on Federal savings and loan associations." 
MATURITY o r CERTAIN HOME LOAN BANK ADVANCES TO SAVINGS 
AND LOAN ASSOCIATIONS 
SEC. 914. Section 11(g) of the Federal Home Loan Bank Act is 
^4 stat. 257. 
amended by striking out "one year" each place it appears and inserting 
^^ ^^^ ^'*^^* 
in lieu thereof "five years". 
CRIMINAL PENALTY FOR FRAUD OR FALSE STATEMENTS TO INFLUENCE 
CERTAIN INSURED INSTITUTIONS AND FEDERAL AGENCIES 
SEC. 915. Section 1014 of title 18 of the United States Code is 
^"te.p. 1017. 
amended by striking out "or an insured State-chartered credit union" 
and inserting in lieu thereof "an insured State-chartered credit union, 
any institution the accounts of which are insured by the Federal Sav-
ings and Loan Insurance Corporation, any bank the deposits of which 
are insured by the Federal Deposit Insurance Corporation, any mem-
ber of the Federal Home Loan Bank System, the Federal Deposit 
Insurance Corporation, the Federal Savings and Loan Insurance Cor-
poration, or the Administrator of the National Credit Union 
Administration". 
1816 
PUBLIC LAW 91-609-DEC. 31, 1970 
[84 STAT. 
UXPLEDGED DEPOSITS I N 
BANK 
FOR SAVINGS AND LOAN 
ASSOCIATIONS, 
CHICAGO, ILLINOIS 
SEC. 916. Unpledged deposits in the Bank For Savings and Loan 
Associations, Chicago, Illinois, maintained by any institution v^hich 
is a member of a Federal Home Loan Bank or is an insured institution 
as defined in section 401 (a) of the National Housing Act, shall be con-
sidered assets for purposes of meeting the liquidity requirements of 
section 5A(b) of the Federal Home Loan Bank Act (12 U.S.C. 1425a 
(b)). 
48 Stat. 1255. 
12 u s e 1724. 
82 Stat. 856. 
INFORMATION AND ADVICE TO NONPROFIT PROJECT SPONSORS 
SEC. 917. Section 4 of the Department of Housing and Urban 
79 Stat. 668. 
Development Act is amended by adding at the end thereof the follovr-
42 use 3533. 
jj-^g ^^^ subsectiou: 
"(d) There shall be in the Department an Assistant to the Sec-
retary, designated by the Secretary, who shall be responsible for 
providing information and advice to nonprofit organizations desiring 
to sponsor housing projects assisted under programs administered 
by the Department." 
ANNUAL REPORT ON PROGRAM ADMINISTRATION AND 
MANAGEMENT 
SEC. 918. Section 5 of the Housing and Urban Development Act 
8 2 Stat. 477. 
of 1968 is amended by striking out "in the calendar year 1969 and in 
the calendar year 1970" and inserting in lieu thereof "in each calendar 
year". 
12 u s e 1701c 
note. 
DISPOSITION OF SURPLUS LAND FOR LOW AND MODERATE INCOME HOUS-
ING AND RELATED FACILITIES 
SEC. 919. (a) Section 414(a) of the Housing and Urban Develop-
4o^usc"48°4b*. 
ment Act of 1969 is amended— 
(1) by striking out "rental or cooperative" in the first sentence; 
(2) by striking out the period at the end of the first sentence and 
inserting after "income" the following: ", and for related public 
facilities and for related commercial and industrial facilities 
approved by the Secretary."; and 
(3) by inserting "235 or" between "section" and "236" in 
clause (C). 
(b) Section 414(b) of such Act is amended— 
(1) by striking out "rental or cooperative" in the first sentence; 
(2) by inserting "and related facilities" between "housing" 
and "to" in the first sentence; 
(3) by inserting "and the Administrator of General Services" 
after "Secretary" in the second sentence, and by striking out "has" 
before "approved" in the second sentence and inserting in lieu 
thereof "have"; and 
(4) by inserting "and the Committees on Government Opera-
tions" after "Currency" in the third sentence, and by striking out 
"he approves" in the third sentence and inserting in lieu thereof 
"he and the Administrator of General Services approve". 
SAVINGS AND LOAN HOLDING 
COMPANIES 
SEC. 920. Section 408(d) (4) (B) of the Savings and Loan Holding 
8 2 Stat. 5,9. 
Compauy Amendments of 1967 is amended by inserting before the 
12 use 1
7 30a. 
scmicolon at the end thereof the following: ": Provided, 
however, 
That with the prior written approval of the Corporation, a subsidiary 
84 STAT. ] 
PUBLIC LAW 91-610-DEC. 31, 1970 
1817 
insured institution may make a loan, discount, or extension of credit 
to a third party on the security of property acquired from a wholly 
owned affiliate service corporation. The Corporation shall grant 
approval of any application for approval under this subdivision if, in 
the opinion of the Corporation, such a loan, discount, or extension 
of credit would not be detrimental to the interests of savings account 
holders in the insured institution, or to the insurance risk of the 
Corporation with respect to such institution, and would not be a 
means of facilitating the sale of (1) property purchased from any 
savings and loan holding company or any affiliate thereof other than 
such service corporation, or (2) property heretofore owned, legally 
or beneficially, by any savings and loan holding company or affiliate 
thereof". 
TIMBER FOR HOUSING NEEDS 
SEC. 921. Section 2(a) of the Act of April 12, 1926, as amended 
(16 U.S.C. 617(a)), is amended by striking out "1971" and inserting 
82 stat. 966. 
in lieu thereof "1973". 
Approved December 31, 1970. 
Public Law 91-610 
AN A C T 
DecemberSl, 1970 
To extend for one additional year the authorization for programs under the 
[H. R. 19401] 
Vocational Rehabilitation Act. 
Vocational Re-
habilitation Act, 
Be it enacted hy the Senate and House of Re'presentatwes 
of the 
United States of America in Congress assembled^ 
SECTION 1. (a) Section 1(b)(1) of the Vocational Rehabilitation amendment" 
Act is amended by striking out "and" and by inserting before the 
^^ stat. 1282; 
period at the end thereof the following:", and for the fiscal year ending 
29 use 31'. 
June 30,1972, the sum of $700,000,000". 
(b) Section 1(b) (2) of such Act is amended by striking out "and" 
and by inserting before the period at the end thereof the following: 
", and for the fiscal year ending June 30,1972, the sum of $10,000,000". 
(c) Section 1(b) (3) of such Act is amended by striking out "and" 
where it appears after "$115,000,000," and by inserting before the 
period at the end thereof the following: ", and for the fiscal year 
ending June 30,1972, the sum of $140,000,000". 
(d) Section 1 (b) (4) of such Act is amended by striking out "1972" 
and inserting "1973". 
SEC. 2. Section 4(a) 
of the Vocational Rehabilitation Act is 
29 use 34. 
amended by striking out "1972" and inserting "1973" in lieu thereof. 
SEC. 3. (a) Section 12(i) of the Vocational Rehabilitation Act is 
29 use 4la. 
amended by striking out "and" where it appears before "$30,000,000", 
and by inserting the following before the semicolon which follows 
"1971": ", and $30,000,000 for the fiscal year ending June 30,1972". 
(b) Such section is further amended by striking out "1973", and 
inserting "1974" in lieu thereof. 
SEC. 4. (a) Section 13(a) (1) of the Vocational Rehabilitation Act is 
29 use 4ib. 
amended by striking out "1971", and inserting "1972" in lieu thereof. 
(b) Section 13(f) of such Act is amended by striking out "and" 
where it appears after "1970," and by inserting "and $30,000,000 for 
the fiscal year ending June 30, 1972," immediately after "1971,". 
SEC. 5. Section 15(a)(2) of the Vocational Rehabilitation Act is 
29 use 42-1. 
amended by inserting "$100,000,000 for the fiscal year ending June 30, 
1972," immediately after "1971,". 
Approved December 31, 1970.