An Act to assist comprehensive city demonstration programs for rebuilding slum and blighted areas and for providing the public facilities and services necessary to improve the general welfare of the people who live in those areas, to assist and encourage
PL 89-754 (S.3708), enacted 11/03/1966

80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1255 
Public Law 89-754 
A N A C T 
November 3, 1966 
To assist comprehensive city demonstration programs for rebuilding slum and 
1
^
^
- ^^^^^ 
blighted areas and for providing the public facilities and services necessary 
to improve the general welfare of the people who live in those areas, to assist 
and encourage planned metropolitan development, and for other purposes. 
Demonstration 
Cities and Met-
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Demonstration Cities and Metropolitan Development ropoirta^nce 
Act of 1966". 
''f \Tf/"* ^""^ 
of 1966. 
TITLE I—COMPREHENSIVE CITY DEMONSTRATION 
PROGRAMS 
FINDINGS AND DECLARATION OF PURPOSE 
SEC. 101. The Congress hereby finds and declares that improving 
the quality of urban life is the most critical domestic problem facing 
the United States. The persistence of widespread urban slums and 
blight, the concentration of persons of low^ income in older urban 
areas, and the unmet needs for additional housing and community 
facilities and services arising from rapid expansion of our urban 
population have resulted in a marked deterioration in the quality of 
the environment and the lives of large numbers of our people while 
the Nation as a whole prospers. 
The Congress further finds and declares that cities, of all sizes, do 
not have adequate resources to deal effectively with the critical prob-
lems facing them, and that Federal assistance in addition to that 
now authorized by the urban renewal program and other existing 
Federal grant-in-aid programs is essential to enable cities to plan, 
develop, and conduct programs to improve their physical environ-
ment, increase their supply of adequate housing for low- and moderate-
income people, and provide educational and social services vital to 
health and welfare. 
The purposes of this title are to provide additional financial and 
technical assistance to enable cities of all sizes (with equal regard 
to the problems of small as well as large cities) to plan, develop, and 
carry out locally prepared and scheduled comprehensive city demon-
stration programs containing new and imaginative proposals to 
rebuild or revitalize large slum and blighted areas; to expand hous-
ing, job, and income opportunities; to reduce dependence on welfare 
payments; to improve educational facilities and programs; to combat 
disease and ill health; to reduce the incidence of crime and delin-
q^uency; to enhance recreational and cultural opportunities; to estab-
lish better access between homes and jobs; and generally to improve 
living conditions for the people who live in such areas, and to accom-
plish these objectives through the most effective and economical con-
centration and coordination of Federal, State, and local public and 
private efforts to improve the quality of urban life. 
BASIC AUTHORITY 
SEC. 102. The Secretary of Housing and Urban Development 
(hereinafter referred to as the "Secretary") is authorized to make 
grants and provide technical assistance, as provided by this title, to 
enable city demonstration agencies (as defined in section 112(2)) to 
plan, develop, and carry out comprehensive city demonstration pro-
grams in accordance with the purposes of this title. 
1256 
PUBLIC LAW 89-754-NOV. 3, 1966 
[80 STAT. 
ELIGIBILITY FOR ASSISTANCE 
SEC. 103. (a) A comprehensive city demonstration program is 
eligible for assistance under sections 105 and 107 only if— 
(1) physical and social problems in the area of the city covered 
by the program are such that a comprehensive city demonstration 
program is necessary to carry out the policy of the Congress as 
expressed in section 101; 
(2) the program is of sufficient magnitude to make a substan-
tial impact on the physical and social problems and to remove or 
arrest blight and decay in entire sections or neighborhoods; to 
contribute to the sound development of the entire city; to make 
marked progress in reducing social and educational disadvan-
tages, ill health, underemployment, and enforced idleness; and 
to provide educational, health, and social services necessary to 
serve the poor and disadvantaged in the area, widespread citizen 
participation in the program, maximum opportunities for em-
ploying residents of the area in all phases of the program, and 
enlarged opportunities for work and training; 
(3) the program, including rebuilding or restoration, will con-
tribute to a well-balanced city with a substantial increase in the 
supply of standard housing of low and moderate cost, maximum 
opportunities in the choice of housing accommodations for all 
citizens of all income levels, adequate public facilities (including 
those needed for education, health and social services, transporta-
tion, and recreation), commercial facilities adequate to serve the 
residential areas, and ease of access between the residential areas 
and centers of employment; 
(4) the various projects and activities to be undertaken in con-
nection with such programs are scheduled to be initiated within 
a reasonably short period of time; adequate local resources are, 
or will be, available for the completion of the program as sched-
uled, and, in the carrying out of the program, the fullest utiliza-
tion possible will be made of private initiative and enterprise; 
administrative machinery is available at the local level for carry-
ing out the program on a consolidated and coordinated basis; sub-
stantive local laws, regulations, and other requirements are, or can 
be expected to be, consistent with the objectives of the program; 
there exists a relocation plan meeting the requirements of the reg-
ulations referred to in section 107; the local governing body has 
approved the program and, where appropriate, applications for 
assistance under the program; agencies whose cooperation is neces-
sary to the success of the program have indicated their intent to 
furnish such cooperation; the program is consistent with compre-
hensive planning for the entire urban or metropolitan area; and 
the locality will maintain, during the period an approved compre-
hensive city demonstration program is being carried out, a level 
of aggregate expenditures for activities similar to those being 
assisted under this title which is not less than the level of aggre-
gate expenditures for such activities prior to initiation of the com-
prehensive city demonstration program; and 
(5) the program meets such additional requirements as the 
Secretary may establish to carry out the purposes of this title: 
Provided^ That the authority of the Secretary under this para-
graph shall not be used to impose criteria or establish require-
ments except those which are related and essential to the specific 
provisions of this title. 
80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1257 
(b) 111 implementing this title the Secretary shall— 
(1) emphasize local initiative in the planning, development, 
and implementation of comprehensive city demonstration pro-
grams ; 
(2) insure, in conjunction with other appropriate Federal 
departments and agencies and at the direction of the President, 
maximum coordination of Federal assistance provided in con-
nection with this title, prompt response to local initiative, and 
maximum flexibility in programing, consistent with the require-
ments of law and sound administrative practice; and 
(3) encourage city demonstration agencies to (A) enhance 
neighborhoods by applying a high standard of design, (B) main-
tain, as appropriate, natural and historic sites and distinctive 
neighborhood characteristics, and (C) make maximum possible 
use of new and improved technology and design, including cost 
reduction techniques. 
(c) The preparation of demonstration city programs should 
include to the maximum extent feasible (1) the performance of 
analyses that provide explicit and systematic comparisons of the costs 
and benefits, financial and otherwise, of alternative possible actions 
or courses of action designed to fulfill urban needs; and (2) the estab-
lishment of programing systems designed to assure effective use of 
such analyses by city demonstration agencies and by other govern-
ment bodies. 
(d) Nothing in this section shall authorize the Secretary to require 
(or condition the availability or amount of financial assistance author-
ized to be provided under this title upon) the adoption by any com-
munity of a program (1) by which pupils now resident in a school 
district not within the confines of the area covered by the city demon-
stration program shall be transferred to a school or school district 
including all or part of such area, or (2) by which pupils now resident 
in a school district within the confines of the area covered by the city 
demonstration program shall be transferred to a school or school dis-
trict not including a part of such area. 
FINANCIAL ASSISTANCE FOR PLANNING 
COMPREHENSIVE 
CITY DEMONSTRATION 
PROGRAMS 
SEC. 104. (a) The Secretary is authorized to make grants to, and 
to contract with, city demonstration agencies to pay 80 per centum of 
the costs of planning and developing comprehensive city demonstra-
tion programs. 
(b) P'inancial assistance will be provided under this section only if 
(1) the application for such assistance has been approved by the local 
governing body of the city, and (2) the Secretary has determined that 
there exist (A) administrative machinery through which coordination 
of all related planning activities of local agencies can be achieved, and 
(B) evidence that necessary cooperation of agencies engaged in related 
local planning can be obtained. 
FINANCIAL 
A S S I S T A N C E FOR APPROVED COMPREHENSIVE 
CITY 
DEMONSTRATION 
PROGRAMS 
SEC. 105. (a) The Secretary is authorized to approve comprehensive 
city demonstration programs if, after review of the plans, he deter-
mines that such plans satisfy the criteria for such programs set forth 
in section 103. 
1258 
PUBLIC LAW 89-754-NOV. 3, 1966 
[SO STAT. 
(b) The Secretary is authorized to make grants to, and to contract 
with, city demonstration agencies to pay 80 per centum of the cost of 
administering approved comprehensive city demonstration programs, 
but not the cost of administering any project or activity assisted under 
a Federal grant-in-aid program. 
(c) To assist the city to carry out the projects or activities included 
within an approved comprehensive city demonstration program, the 
Secretary is authorized to make grants to the city demonstration 
agency of not to exceed 80 per centum of the aggregate amount of 
non-Federal contributions otherwise required to be made to all proj-
ects or activities assisted by Federal grant-in-aid programs (as 
defined in section 112(1)) which are carried out in connection with 
such demonstration program: Provided^ That no Federal grant-in-
aid program shall be considered to be carried out in connection with 
such demonstration program unless it is closely related to the physical 
and social problems in the area of the city covered by the program 
and unless it can reasonably be expected to have a noticeable effect 
upon such problems. The specific amount of any such grant shall 
take into account the number and intensity of the economic and social 
pressures in the sections or neighborhoods involved, such as those 
involving or resulting from population density, poverty levels, unem-
ployment rate, public welfare participation, educational levels, health 
and disease characteristics, crime and delinquency rate, and degree of 
substandard and dilapidated housing. The amount of non-Federal 
contribution required for each project in a Federal grant-in-aid pro-
gram shall be certified to the Secretary by the Federal department 
or agency (other than the Department of Housing and Urban Devel-
opment) administering such program, and the Secretary shall accept 
such certification in computing the grants hereunder. 
(d) Grant funds provided to assist projects and activities included 
within an approved comprehensive city demonstration program pur-
suant to subsection (c) of this section shall be made available to assist 
new and additional projects and activities not assisted under a Federal 
grant-in-aid program. To the extent such funds are not necessary to 
support fully such new and additional projects and activities, they 
may be used and credited as part or all of the required non-Federal 
contribution to projects or activities, assisted under a Federal grant-
in-aid program, v/hich are part of an approved comprehensive city 
demonstration program. 
Such grant funds, however, shall not be 
used— 
(1) for the general administration of local governments; or 
(2) to replace non-Federal contributions in any federally aided 
project or activity included in an approved comprehensive city 
demonstration program, if prior to the filing of an application for 
assistance under section 104 an agreement has been entered into 
with any Federal agency obligating such non-Federal contribu-
tions with respect to such project or activity. 
TECHNICAL 
ASSISTANCE 
SEC. 106. The Secretary is authorized to undertake such activities 
as he determines to be desirable to provide, either directly or by con-
tracts or other arrangements, technical assistance to city demonstra-
tion agencies to assist such agencies in planning, developing, and 
administering comprehensive city demonstration programs. 
"Relocation 
payments." 
80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1259 
RELOCATION REQUIREMENTS AND 
PAYMENTS 
SEC. 107. (a) A comprehensive city demonstration program shall 
include a plan for the relocation of individuals, families, business 
concerns, and nonprofit organizations displaced or to be displaced in 
the carrying out of such program. The relocation plan shall be con-
sistent with regulations prescribed by the Secretary to assure that (1) 
the provisions and procedures included in the plan meet relocation 
standards equivalent to those prescribed under section 105(c) of the 
Housing Act of 1949 with respect to urban renewal projects assisted 
^^ ^^^ f^^^ 
under title I of that Act, and (2) relocation activities are coordinated 
to the maximum extent feasible with the increase in the supply of 
decent, safe, and sanitary housing for families and individuals of low 
or moderate income, as provided under the comprehensive city dem-
onstration program, or otherwise, in order to best maintain the avail-
able supply of housing for all such families and individuals through-
out the city. 
(b) (1) To the extent not otherwise authorized under any Federal 
law, financial assistance extended to a city demonstration agency 
under section 105 shall include grants to cover the full cost of reloca-
tion payments, as herein defined. Such grants shall be in addition to 
other financial assistance extended to such agency under section 105. 
(2) The term "relocation payments" means payments by a city 
demonstration agency to a displaced individual, family, business con-
cern, or nonprofit organization which are made on such terms and 
conditions and subject to such limitations (to the extent applicable, 
but not including the date of displacement) as are provided for reloca-
tion payments, at the time such payments are approved, by section 
114 (b), (c), (d), and (e) of the Housing Act of 1949 with respect to jgl^H^^^J^^^' 
projects assisted under title I thereof. 
42 use MM 
(c) Subsection (b) shall not be applicable with respect to any 
displacement occurring prior to the date of the enactment of this Act. 
CONTINUED AVAILABILITY OF FEDERAL GRANT-IN-AID PROGRAM FUNDS 
SEC. 108. Notw'ithstanding any other provision of law% unless here-
after enacted expressly in limitation of the provisions of this section, 
funds appropriated for a Federal grant-in-aid program wliich are 
reserved for any projects or activities assisted under such grant-in-aid 
program and undertaken in connection with an approved compre-
hensive city demonstration program shall remain available until 
expended. 
CONSULTATION 
SEC. 109. In carrying out the provisions of this title, including the 
issuance of regulations, the Secretary shall consult with other Federal 
departments and agencies administering Federal grant-in-aid pro-
grams. The Secretary shall consult with each Federal department 
and agency affected by each comprehensive city demonstration pro-
gram before entering into a commitment to make grants for such 
program under section 105, 
LABOR STANDARDS 
SEC. 110. (a) All laborers and mechanics employed by contractors 
or subcontractors in the construction, rehabilitation, alteration, or 
repair of projects which— 
(1) are federally assisted in whole or in part under this title 
and 
1260 
PUBLIC LAW 89-754-NOV. 3, 1966 
[80 STAT. 
(2) are not otherwise subject to section 212 of the National 
1
2 use" fmc 
Housing Act, section 16(2) of the United States Housing Act of 
63 Stat. 430."' 
1937, sectiou 109 of the Housing Act of 1949, or any other 
42 use 1416. 
provision of Federal law imposing labor standards on federally 
68 Stat. 626. 
• j_ i 
^ 
j.' 
42 use 1459. 
assisted construction, 
shall be paid wages at rates not less than those prevailing on similar 
construction in the locality as determined by the Secretary of Labor 
in accordance with the Davis-Bacon Act, as amended (40 LT.S.C. 
78*sta!°'238°^^' 
276a—276a-5) : Provided. That this section shall apply to the con-
struction, rehabilitation, alteration, or repair of residential property 
only if such residential property is designed for residential use for 
eight or more families. 
No financial assistance shall be extended to 
any such projects unless adeqviate assurance is first obtained that these 
labor standards 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 ILS.C. 133z-15), and section 2 of the Act of 
63 Stat. 108. 
June 13, 1934, as amended (48 Stat. 948; 40 U.S.C. 276c), and the 
Contract Work Hours Standards Act (76 Stat. 357). 
40 u s e 327. 
APPROPRIATIONS 
SEC. 111. (a) There are authorized to be appropriated, for the pur-
pose of financial assistance and administrative expenses under sec-
tions 104 and 106, not to exceed $12,000,000 for the fiscal year ending 
June 30, 1967, and not to exceed $12,000,000 for the fiscal year ending 
June 30, 1968. 
(b) There are authorized to be appropriated, for the purpose of 
financial assistance and administrative expenses under sections 105, 
106, and 107, not to exceed $400,000,000 for the fiscal year ending 
June 30, 1968, and not to exceed $500,000,000 for the fiscal year end-
ing June 30,1969. 
(c) Appropriations authorized under this section shall remain 
available until expended. 
DEFINITIONS 
SEC. 112. As used in this title— 
(1) "Federal grant-in-aid program" means a program of Federal 
financial assistance other than loans and other than the assistance 
provided by this title. 
(2) "City demonstration agency" means the city, the county, or any 
local public agency established or designated by the local governing 
body of such city or county to administer the comprehensive city 
demonstration program. 
(3) "City" means any municipality (or two or more municipalities 
acting jointly) or any county or other public body (or two or more 
acting jointly) having general governmental powers. 
(4) "Local" agencies include State agencies and instrumentalities 
providing services or resources to a city or locality, and "local" 
resources include those provided to a city or locality by a State or its 
agency or instrumentality. 
GRANT AUTHORITY FOR URBAN RENEWAL PROJECTS W H I C H ARE PART OF 
APPROVED COMPREHENSIVE 
CITY DEMONSTRATION 
PROGRAMS 
42 vsciisi 
S E C 113. Section 103(b) of the Housing Act of 1949 is amended 
by inserting after the first sentence the following new sentence: "In 
addition to the authority to make grants provided in the first sentence 
of this subsection, the Secretary may contract to make grants under 
80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1261 
this title, on or after July 1, 1967, in an amount not to exceed $250,-
000,000: Provided, That the authority to contract to make grants 
provided by this sentence shall be exercised only with respect to an 
urban renewal project which is identified and scheduled to be carried 
out as one of the projects or activities included within an approved 
comprehensive city demonstration program assisted under the pro-
visions of section 105(c) of the Demonstration Cities and Metro-
politan Development Act of 1966." 
^"'^' P- ^^SS. 
STATE 
LIMIT 
SEC. 114. Grants made under section 105 for projects in any one 
State shall not exceed in the aggregate 15 per centum of the aggregate 
amount of funds authorized to be appropriated under section 111. 
TITLE 
II—PLANNED 
METROPOLITAN DEVELOPMENT 
FINDINGS AND DECLARATION OF PURPOSE 
SEC. 201. (a) The Congress hereby finds that the welfare of the 
Nation and of its people is directly dependent upon the sound and 
orderly development and the effective organization and functioning of 
the metropolitan areas in which two-thirds of its people live and work. 
It further finds that the continuing rapid growth of these areas 
makes it essential that they prepare, keep current, and carry out com-
prehensive plans and programs for their orderly physical development 
with a view to meeting efficiently all their economic and social needs. 
It further finds that metropolitan areas are especially handicapped 
in this task by the complexity and scope of governmental services 
required in such rapidly growing areas, the multiplicity of political 
jurisdictions and agencies involved, and the inadequacy of the opera-
tional and administrative arrangements available for cooperation 
among them. 
It further finds that present requirements for areawide planning 
and programing in connection with various Federal programs have 
materially assisted in the solution of metropolitan j^roblems, but that 
greater coordination of Federal programs and additional participa-
tion and cooperation are needed from the States and localities in per-
fecting and carrying out such efforts. 
(b) It is the purpose of this title to provide, through greater coordi-
nation of Federal programs and through supplementary grants for 
certain federally assisted development projects, additional encourage-
ment and assistance to States and localities for making comprehensive 
metropolitan planning and programing effective. 
COOPERATION BETWEEN FEDERAL AGENCIES 
SEC. 202. In order to insure that all Federal programs related to 
metropolitan development are carried out in a coordinated manner— 
(1) the Secretary is authorized to call upon other Federal 
agencies to supply such statistical data, program reports, and 
other materials as he deems necessary to discharge his respon-
sibilities for metropolitan development, and to assist the Presi-
dent in coordinating the metropolitan development efforts of 
all Federal agencies; and 
(2) all Federal agencies which are engaged in administering 
programs related to metropolitan development, or which other-
wise perform functions relating thereto, shallj to the maximum 
extent practicable, consult with and seek advice from all other 
65-300 0-67—82 
1262 
PUBLIC LAW 89-754-NOV. 3, 1966 
[80 STAT. 
significantly affected Federal departments and agencies in an 
effort to assure fully coordinated programs. 
METROPOLITAN 
EXPEDITERS 
SEC. 203. Upon the request of the duly authorized local officials of 
the central city in any metropolitan area, and after consultation with 
local governmental authorities throughout the metropolitan area with 
respect to whether or not the Secretary should make an appointment 
under this section (and with respect to the individuals who might be 
so appointed), the Secretary may appoint a metropolitan expediter 
for such area whenever he finds a need for the services specified in this 
section. The metropolitan expediter shall provide information, data, 
and assistance to local authorities and private individuals and entities 
within the metropolitan area, and to all relevant Federal departments 
and agencies, with respect to all programs and activities conducted 
within such metropolitan area by the Department of Housing and 
Urban Development, and with respect to other public and private 
activities and needs within such metropolitan area which relate to 
the programs and activities of the Department. 
COORDINATION OF FEDERAL AIDS I N METROPOLITAN AREAS 
SEC. 204. (a) All applications made after June 30, 1967, for Fed-
eral loans or grants to assist in carrying out open-space land projects 
or for the planning or construction of hospitals, airports, libraries, 
water supply and distribution facilities, sewerage facilities and waste 
treatment works, highways, transportation facilities, and water devel-
opment and land conservation projects within any metropolitan area 
shall be submitted for review— 
(1) to any areawide agency which is designated to perform 
metropolitan or regional planning for the area within which the 
assistance is to be used, and which is, to the greatest practicable 
extent, composed of or responsible to the elected officials of a unit 
of areawide government or of the units of general local govern-
ment within whose jurisdiction such agency is authorized to 
engage in such planning, and 
(2) if made by a special purpose unit of local government, to 
the unit or units of general local government with authority to 
operate in the area within which the project is to be located. 
(b) (1) Except as provided in paragraph (2) of this subsection, 
each application shall be accompanied (A) by the comments and rec-
ommendations with respect to the project involved by the areawide 
agency and governing bodies of the units of general local government 
(o which the application has been submitted for review, and (B) by a 
statement by the applicant that such comments and recommendations 
have been considered prior to formal submission of the application. 
Such comments shall include information concerning the extent to 
which the project is consistent with comprehensive planning devel-
oped or in the process of development for the metropolitan area or 
the unit of general local government, as the case may be, and the extent 
to which such project contributes to the fulfillment of such planning. 
The comments and recommendations and the statement referred to in 
this paragraph shall, except in the case referred to in paragraph (2) 
of this subsection, be reviewed by the agency of the Federal Govern-
ment to which such application is submitted for the sole purpose of 
assisting it in determining whether the application is in accordance 
with the provisions of Federal law which govern the making of the 
Joans or grants. 
80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1263 
(2) An application for a Federal loan or grant need not be accom-
panied by the comments and recommendations and the statements 
referred to in paragraph (1) of this subsection, if the applicant cer-
tifies that a plan or description of the project, meeting the require-
ments of such rules and regulations as may be prescribed under sub-
section (c), or such application, has lain before an appropriate area-
wide agency or instrumentality or unit of general local government 
for a period of sixty days without comments or recommendations 
thereon being made by such agency or instrumentality. 
(3) The requirements of paragraphs (1) and (2) shall also apply 
to any amendment of the application which, in light of the purposes 
of this title, involves a major change in the project covered by the 
application prior to such amendment. 
(c) The Bureau of the Budget, or such other agency as may be 
designated by the President, is hereby authorized to prescribe such 
rules and regulations as are deemed appropriate for the effective 
administration of this section. 
GRANTS TO ASSIST I N PLANNED METROPOLITAN 
DEVELOPMENT 
SEC. 205. (a) 
The Secretary is authorized to make supplementary 
grants to applicant State and local public bodies and agencies carry-
ing out, or assisting in carrying out, metropolitan development proj-
ects meeting the requirements of this section. 
(b) Grants may be made under this section only for metropolitan 
development projects in metropolitan areas for which it has been 
demonstrated, to the satisfaction of the Secretary, that— 
(1) metropolitanwide comprehensive planning and program-
ing provide an adequate basis for evaluating (A) the location, 
financing, and scheduling of individual public facility projects 
(including but not limited to hospitals and libraries; sewer, 
water, and sewage treatment facilities; highway, mass transit, air-
port, and other transportation facilities; and recreation and other 
open-space areas) whether or not federally assisted; and (B) 
other proposed land development or uses, which projects or uses, 
because of their size, density, type, or location, have public metro-
politanwide or interjurisdictional significance; 
(2) adequate metropolitanwide institutional or other arrange-
ments exist for coordinating, on the basis of such metropolitan-
wide comprehensive planning and programing, local public 
policies and activities affecting the development of the area; and 
(3) public facility projects and other land development or uses 
which have a major impact on the development of tlie area are, 
in fact, being carried out in accord with such metropolitanwide 
comprehensive planning and programing. 
(c) (1) Where the applicant for a grant under this section is a 
unit of general local government, it must demonstrate to the satis-
faction of the Secretary that, taking into consideration the scope of 
its authorit;^ and responsibilities, it is adequately assuring that public 
facility projects and other land development or uses of public metro-
politanwide or interjurisdictional significance are being, and will be, 
carried out in accord with metropolitan planning and programing 
meeting the requirements of subsection (b). In making this deter-
mination the Secretary shall ^ive special consideration to whether the 
applicant is effectively assisting in, and conforming to, metropolitan 
planning and programing through (A) the location and scheduling 
of public facility projects, whether or not federally assisted; and (B) 
the establishment and consistent administration of zoning codes, sub-
division regulations, and similar land-use and density controls. 
1264 
PUBLIC LAW 89-754-NOV. 3, 1966 
[80 STAT. 
(2) Where the applicant for a jjiaiit under this section is not a 
unit of general local government, both it and the tniit of general local 
government having jurisdiction over the location of the project must 
meet the requirements of this subsection. 
(d) In making the determinations required under this section, the 
Secretary shall obtain, and give full consideration to, the comments 
of the body or bodies (State or local) responsible for comprehensive 
l)lanning and programing for the metropolitan area. 
(e) No grant shall be made under this section with respect to a 
metropolitan development project for which a Federal grant has been 
made, or a contract of assistance has been entered into, under the legis-
lation referred to in paragraph (2) of section 208, prior to February 
21, 1966, or more than one year prior to the date on which the Secre-
tary has made the determmations required under this section with 
respect to the applicant and to the area in which the project is located: 
Provided. That in the case of a project for which a contract of assist-
ance under the legislation referred to in paragraph (2) of section 208 
has been entered into after June 30,1967, no grant shall be made under 
this section unless an application for such grant has been made on or 
before the date of such contract. 
(f) Nothing in this section shall authorize the Secretary to require 
(or condition the availability or amount of financial assistance author-
ized to be provided under this title upon) the adoption by any com-
munity of a program to achieve a racial balance or to eliminate racial 
imbalance within school districts within the metropolitanwide area. 
EXTENT o r GRANT 
SEC. 206. (a) A grant under section 205 shall not exceed (1) 20 
per centum of the cost of the project for which the grant is made; 
nor (2) the Federal grant made with respect to the project under the 
legislation referred to in paragraph (2) of section 208. In no case 
shall the total Federal contributions to the cost of such project be 
more than 80 per centum. Notwithstanding any other provision of 
law, including requirements with respect to non-Federal contributions, 
grants under section 205 shall be eligible for inclusion (directly or 
through refunds or credits) as part of the financing for such projects: 
Restriction. 
Pvovided^ That projects or activities on the basis of which assistance 
Ante. p. 1258. 
jg provided under section 105(c) shall not be eligible for assistance 
under section 205. 
(b) There are authorized to be appropriated for grants under sec-
tion 205 not to exceed $25,000,000 for the fiscal year ending June 30, 
1967, and not to exceed $50,000,000 for the fiscal year ending June 
30, 1968. Appropriations authorized under this section shall remain 
available until expended. 
CONSULTATION 
AND CEKTlP^lCA'l ION 
SEC. 207. In carrying out his authority under section 205, includ-
ing the issuance of regulations, the Secretary shall consult with the 
Department of the Interior; the Department of Health, Education, 
and Welfare; the Department of Commerce; and the Federal 
Aviation Agency with respect to metropolitan development projects 
assisted by those departments and agencies; and he shall, for the pur-
pose of section 206, accept their respective certifications as to the cost 
of those projects and the amount of the non-Federal contribution paid 
or to be paid to that cost. 
80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1265 
DEFINI'nONS 
SEC. 208. As used in this title— 
(1) "Metropolitan development" means all projects or programs for 
the acquisition, use, and development of open-space land; and the 
planning and construction of hospitals, libraries, airports, water 
supply and distribution facilities, sewerage facilities and waste treat-
ment works, transportation facilities, highways, water development 
and land conservation, and other public works facilities. 
(2) "Metropolitan development project" means a project assisted 
or to be assisted under section 702 of the Housing and Urban Develop-
ment Act of 1965; title II of the Library Services and Construction 
^2 use 3102. 
Act; section 606 of the Public Health Service Act; section 8 of the sssd. 
Federal Water Pollution Control Act; section 120(a) of title 23, 42 use 29if. 
United States Code; section 12 of the Federal Airport Act; section 3 
49 y^^ 1111! 
of the Urban Mass Transportation Act of 1964; title VII of the Hous- 
49 use 1602. 
ing Act of 1961; or section 5(e) of the Land and Water Conservation 
i6^sc46ol°8 
Fund Act of 1965; or under section 101(a) (1) of the Public Works 
42 use 3131.' 
and Economic Development Act of 1965 (for a project of a type which 
the Secretary determines to be eligible fpr assistanqe under any of the 
other provisions listed above). 
(3) "State" means any State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, any territory or posses-
sion of the United States, or an agency or instrumentality of any of 
the foregoing. 
(4) "Metropolitan area" means a standard metropolitan statistical 
area as established by the Bureau of the Budget, subject however to 
such modifications and extensions as the Secretary may determine 
to be appropriate for the purposes of this title. 
(5) "Comprehensive planning" includes the following, to the extent 
directly related to area needs or needs of a unit of general local gov-
ernment : (A) preparation, as a guide for long-range development, of 
general physical plans with respect to the pattern and intensity of 
land use and the provision of public facilities, including transporta-
tion facilities; (B) programing of capital improvements based on 
a determination of relative urgency; (C) long-range fiscal plans 
for implementing such plans and programs; and (D) proposed regu-
latory and administrative measures which aid in achieving coordina-
tion of all related plans of the departments or subdivisions of the 
governments concerned and intergovernmental coordination of related 
planned activities among the State and local governmental agencies 
concerned. 
(6) "Hospital" means any public health center or general, tubercu-
losis, mental, chronic disease, or other type of hospital and related 
facilities, such as laboratories, outpatient departments, nurses' home 
and training facilities, and central service facilities normally operated 
in connection with hospitals, but does not include any hospital furnish-
ing primarily domiciliary care. 
(7) "Areawide agency" means an official State or metropolitan or 
regional agency empowered under State or local laws or under an 
interstate compact or agreement to perform comprehensive planning 
in an area; an organization of the type referred to in section 701(g) 
of the Housing Act of 1954; or such other ag-encv or instrumental it 
v 
'^^ ^*^*- ^^'^• 
as may be designated by the (jovernor (or, in the case of metropolitan 
areas crossing State lines, any one or more of such agencies or instru-
mentalities as may be designated by the Governors of the States 
involved) to perform such planning. 
40 use 461. 
1266 
PUBLIC LAW 89-754-NOV. 3, 1966 
[80 STAT. 
(8) "Special purpose unit of local government" means any special 
district, public-purpose corporation, or other limited-purpose political 
subdivision of a State, but shall not include a school district. 
(9) "Unit of general local government" means any city, county, 
town, parish, village, or other general-purpose political subdivision 
of a State. 
(10) "Secretary" means the Secretary of Housing and Urban 
Development. 
STATE 
L I M I T 
SEC. 209. Grants made under section 205 for projects in any one 
State shall not exceed in the aggregate 15 per centum of the aggre-
gate amount of funds authorized to be appropriated pursuant to sec-
tion 206(b). 
TITLE III—FHA INSURANCE OPERATIONS 
F H A MORTGAGE FINANCING FOR VETERANS 
79 Stat. 466. 
12 u s e 1709. 
SEC. 301. The next to last sentence of section 203(b)(2) of the 
National Housing Act is amended by striking out "If the mortgagor 
is a veteran who has not received any direct, guaranteed, or insured 
loan under laws administered by the Veterans' Administration for the 
purchase, construction, or repair of a dwelling (including a farm 
dwelling) which was to be owned and occupied by him as his home," 
and inserting in lieu thereof the following: "If the mortgagor is a 
veteran,". 
AREAS AFFECTED BY CIVIL DISORDERS 
52 Stat. 10. 
SEC. 302. Section 203 of the National Housing Act is amended by 
adding at the end thereof the following new subsection: 
"(1) The Secretary is authorized to insure under this section any 
mortgage meeting the requirements of this section, other than the 
requirement in subsection (c) relating to economic soundness, if he 
determines that (1) the dwelling covered by the mortgage is situated 
in an area in which rioting or other civil disorders have occurred 
or are threatened, (2) as a result of such actual or threatened rioting 
Or other disorders the property with respect to which the mortgage 
is executed cannot meet the normal requirements with respect to eco-
nomic soundness, and (3) such property is an acceptable risk giving 
due consideration to the need for providing adequate housing for 
families of low and moderate income in such area." 
79 Stat. 469. 
12 u s e 1715e. 
COOPERATIVE HOUSING INSURANCE 
FUND 
SEC. 303. (a) Section 213(m) of the National Housing Act is 
amended by striking out ", but only in cases where the consent of the 
mortgagee or lender to the transfer is obtained or a request by the 
mortgagee or lender for the transfer is received by the Commissioner 
within such period of time after the date of the enactment of this 
subsection as the Commissioner shall prescribe". 
(b) Section 213 (n) of such Act is amended— 
(1) by striking out "insured under this section and sections 
207, 231, and 232" and inserting in lieu thereof "the insurance of 
which is the obligation of either the Management Fund or the 
General Insurance Fund"; and 
(2) by adding at the end thereof the following new sentence: 
"Premium charges on the insurance of mortgages or loans trans-
ferred to the Management Fund or insured pursuant to commit-
ments transferred to the Management Fund may be payable in 
468. 
12 u s e 1715e. 
80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1267 
(lebeiituivs wliicli aiv the obligation of either tlie Maiisigeiueiit. 
Fund or tlie (ieiieral Insurance Fund." 
((•)(!) The fourtli sentence of section -il^ik) of sucii Act is 
J2 use 
aniendecl to read as follows: "The Secretary is directed to transfer to 
the Management Fund from the (xeneral Insurance Fund an amount 
equal to the total of the premium payments theretofore made with 
respect to the insurance of mortgages and loans transferred to the 
Management Fund pursuant to subsection (m) minus the total of any 
administrative expenses theretofore incurred in connection with such 
mortgages and loans, plus such other amounts as the Secj-etary deter-
mines to be necessary and appropriate." 
(2) The se<*ond proviso in section 218(1) of such Act is amended 
by striking out "pursuant to subsection (k) or (o)'* and inseiting in 
Jieu thereof "pursuant to subsection (o)". 
SIIM'LEMKNTAKV FINANCING FOR COOPKKATIVK 
MOUSING 
SEC. 804. Section 218(j)(2)(A) of the Xational Housing Act is 
75 stat. 179. 
amended by adding at the end thereof the following: "'except that, in 
the case of improvements or additional community facilities, the out-
standing indebtedness may be increased by an amount ecjual to 97 
per centum of the amount which the Secretary estunates will be the 
value of such improvements or facilities, and the new outstanding 
indebtedness may exceed the original principal obligation of the 
mortgage if such new outstanding indebtedness does not exceed the 
limitations imposed by subsection (b) ;". 
MOK'lXiACJK I J M I T S l^NDEK SECTION 220 SALES HOI SING MOK'J\iA(iE 
INSURANCE PROGRAM 
SEC. 805. (a) 
Section 220(d) (3) (A) (i) of the National Housing-
Act is amended by striking out "(3) 75 per centum of sucli replace- ys^stat^'iso^^' 
ment cost in excess of $20,000" and inserting in lieu thereof "(3) 80 
1
2 use ir'isk. 
per centum of such replacement cost in excess of $20,000". 
(b) Section 220(d) (3) (A) (i) of such Act is further amended by 
adding before the semicolon at the end thereof the following: ": Pro-
vided further^ That if the mortgagor is a veteran and the mortgage to 
be insured under this section covers property upon which there is 
located a dwelling designed principally for a one-family residence, 
the principal obligation may be in an amount equal to the "sum of (1) 
100 per centum of $15,000 of the Commissioner's estimate of replace-
ment cost of the property, as of the- date the mortgage is accepted 
for insurance, (2) 90 per centum of such replacement cost in excess of 
$15,000 but not in excess of $20,000, and (3) 85 per centum of such 
replacement cost in excess of $20,000. 
As used herein, the term 
'veteran' means any person who served on active duty in the Armed 
Forces of the United States for a period of not less than ninety days 
(or is certified by the Secretary of Defense as having performed extra-
hazardous service), and who was discharged or released therefrom 
under conditions other than dishonorable". 
INCREASED MORIXJAGE LIMITATIONS UNDER SEC'IION 2 2 0 ( d ) ( 3 ) (B) FOR 
SMALL PROJECTS CONTAINING LARGER FAMILY DWELLING UNITS 
SEC. 806. (a) Section 220(d) (3) (B) (iii) of the National Housing 
Act is amended by inserting after "; and except that" the following: ^ ^
^
^
f
*
^
*
- 7^' 
"with respect to rehabilitation projects involving not more than five 
family units, the Secretary may by regulation increase by 25 per 
centum any of the foregoing dollar amount limitations contained in 
73 Stat. 658. 
1268 
PUBLIC LAW 89-754-NOV. 3, 1966 
[sO STAT. 
this clause which are applicable to units with two, three, or four or 
more bedrooms: Provided^ That". 
y/itau 4*67!^' 
(b) Section 220(d) (3) (B) (iii) of such Act is further amended— 
1
2 use 1715k. 
(1) by inserting immediately before "by not to exceed 45 per 
centum" the following: " (as determined after the application of 
the preceding proviso)"; and 
(2) by striking out '"''Provided^ That nothing" and inserting 
in lieu thereof ''^Provided further^ That nothing''. 
MORTGAGE LIMITS FOR HOMES UNDER SECTION 2 2 1 ( d ) ( 2 ) 
;5 Stat. 149 
gEC. 307. Sectiou 221(d)(2)(A) of the National Housing Act is 
amended by striking out "$11,000" and "$18,000" and inserting in lieu 
thereof "$12,500" and "$20,000", respectively. 
NONDWELLING FACILITIES I N SECTION 2 21 PROJECTS I N 
URBAN RENEWAL AREAS 
68 Stat. 599. 
gj,^. 308. Sectiou 221(f) of the National Housing Act is amended 
by inserting before the period at the end of the first sentence the fol-
lowing: ": Provided^ That in the case of any such property or project 
located in an urban renewal area, the provisions of section 220 (d) (3) 
(B) (iv) shall apply with respect to the nondwelling facilities which 
niay be included in the mortgage if the mortgagor waives the right to 
receive dividends on its equity investment in the portion thereof 
devoted to community and shopping facilities". 
SINGLE OCCUPANTS I N SECTION 2 2 1 ( d ) ( 3 ) 
HOUSING 
SEC 309. Section 221(f) of the National Housing Act is amended 
by adding at the end thereof the following new sentence: "Low- and 
moderate-income persons who are less than 62 years of age shall be 
eligible for occupancy of dwelling units in a project financed with a 
mortgage insured under subsection (d) (3), but not more than 10 per 
centum of the dwelling units in any such project shall be available for 
occupancy by such persons." 
INSURANCE OF MORTGAGES UNDER SECTION 
2 2 1 TO FINANCE 
PURCHASE 
AND REHABILITATION BY NONPROFIT ORGANIZATIONS OF HOUSING FOR 
RESALE TO LOW-INCOME PURCHASERS 
SEC. 310. (a) Section 221 of the National Housing Act is amended 
by adding at the end thereof the following new subsection: 
"(h) (1) In addition to mortgages insured under the other provi-
sions of this section, the Secretary is authorized, upon application 
by the mortgagee, to insure under this subsection as hereinafter pro-
vided any mortgage (including advances under such mortgage dur-
ing rehabilitation) which is executed by a nonprofit organization to 
finance the purchase and rehabilitation of deteriorating or substand-
ard housing for subsequent resale to low-income home purchasers and, 
upon such terms and conditions as the Secretary may prescribe, to 
make commitments for the insurance of such mortgages prior to the 
date of their execution or disbursement thereon. 
"(2) To be eligible for insurance under paragraph (1) of this sub-
section, a mortgage shall— 
" (A) be executed by a private nonprofit corporation or associa-
tion approved for purposes of this subsection by the Secretary, 
for the purpose of financing the purchase of property (compris-
ing one or more tracts or parcels, whether or not contiguous) upon 
80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1269 
which there is located deterionitiii^ or substaiuhird housing- <-on-
sisting of iive or more single-family dwellings of detached, semi-
detached, or row construction and of rehabilitating such dwellinjrs 
with a view to subsequent resale as hereinafter provided: 
"(B) be secured by the property which is to be i)urchased and 
rehabilitated with the proceeds thereof; 
"(C) be in a principal amount not exceeding the appraisetl 
value of the property at the time of its purchase under the 
mortgage plus the estimated cost of the rehabilitation; 
"(I)) bear interest (exclusive of premium charges for insur-
ance and service charge, if any) at the rate in effect under the 
proviso in subsection (d) (5) at the time of execution; 
''(E) provide for complete amortization (subject to paragraph 
(5) (E)) by periodic payments within such term as the Secretary 
may prescribe; and 
"(F) provide for the release of individual single-family dwell-
ings from the lien of the mortgage upon the sale of the reha-
bilitated dwellings in accordance with paragraph (5). 
''(3) No mortgage shall he insured under paragraph (1) unless the 
mortgagor shall have demonstrated to the satisfaction of the Secretary 
that (A) the property to be rehabilitated is located in a neighborhood 
which is sufficiently stable and contains sufficient public facilities and 
amenities to support long-term values, or (B) the rehabilitation to be 
carried out by the mortgagor plus its related activities and the activi-
ties of other owners of housing in the neighborhood, together with 
actions to be taken by public authorities, will be of such scope and 
quality as to give reasonable promise that a stable environment will 
be created in the neighborhood. 
"(4) The aggregate principal balance of all mortgages insured 
under paragraph (1) and outstanding at any one-time shall not exceed 
$20,000,000. 
"(5) (A) No mortgage shall be insured under paragraph (1) unless 
the mortgagor enters into an agreement (in form and substance satis-
factory to the Secretary) that it will offer to sell the dwellings 
involved, upon completion of their rehabilitation, to individuals or 
families (hereinafter referred to as 'low-income purchasers") deter-
mined by the Secretary to have incomes below the maximum amount 
specified (with respect to the area involved) in section 101(c)(1) of 
the Housing and Urban Development Act of 1965. 
"(B) The Secretary is authorized to insure under this paragraph 
inortgages executed to finance the sale of individual dwellings to low-
income purchasers as provided in subparagraph (A). Any such 
mortgage shall— 
"(i) be in a principal amount equal to that portion of the 
unpaid balance of the principal mortgage covering the property 
(insured under paragraph (1)) which is allocable to the indi-
vidual dwelling involved; and 
" (ii) bear interest at the same rate as the principal mortgage, 
and provide for complete amortization by periodic payments 
within a term equal to the remaining term (determined without 
regard to subparagraph (E)) of such principal mortgage. 
''(C) The price for which any individual dwelling is sold to a low-
income purchaser under this paragraph shall be the amount of the 
jnortgage covering the sale as determined under subparagraph (B), 
except that the purchaser shall in addition thereto be required to pay 
on account of the property at the time of purchase such amount (which 
shall not be less than $200, but which may be applied in whole or in 
part toward closing costs) as the Secretary may determine to be 
i-easonable and appropriate in the circumstances. 
79 Stat. 451. 
12 use 1701s. 
1270 
PUBLIC LAW 89-754-NOV. 3, 1966 
[80 STAT. 
"(D) Upon the sale under this paragraph of any individual dwell-
ing, such dwelling shall be released from the lien of the principal 
mortgage, and such mortgage shall thereupon be replaced by an indi-
vidual mortgage insured under this paragraph to the extent of the 
portion of its unpaid balance which is allocable to the dwelling covered 
by such individual mortgage. Until all of the individual dwellings 
in the property covered by the principal mortgage have been sold, 
the mortgagor shall hold and operate the dwellings remaining unsold 
at any given time, as though they constituted rental units in a project 
covered by a mortgage which is insured under subsection (d) (3) (and 
which receives the benefits of the interest rate provided for in the 
proviso in subsection (d)(5)). 
"(E) Upon the sale under this paragraph of all of the individual 
dwellings in the property covered by the principal mortgage, and the 
release of all individual dwellings from the lien of the principal 
mortgage, the insurance of the principal mortgage shall be terminated 
and no adjusted premium charge shall be charged by the Secretary 
upon such termination. 
"(E") Any mortgage insured under this paragraph shall contain a 
provision that if the low-income mortgagor does not continue to 
occupy the property the interest rate shall increase to the highest rate 
permissible under this section and the regulations of the Secretary 
effective at the time of commitment for insurance of the principal 
mortgage: except that the increase in interest rate shall not be appli-
cable if the property is sold and the purchaser is (i) the nonprofit 
organization which executed the principal mortgage, (ii) a public 
housing agency having jurisdiction under the United States Housing 
42 use* ^
f
a
^
o 
"^^^ ^^ 
^^^^ ^^® ^^^^ where the dwelling is located, or (iii) a low-
income purchaser approved for the purposes of this paragraph by the 
Secretary." 
68 Stat. 599. 
(b) (1) Scction 221 (g) (1) of such Act is amended by inserting after 
"paragraph (2) of subsection (d) of this section" the following: "or 
paragraph (5) of subsection (h) of this section". 
(2) Section 221(g)(2) of such Act is amended by inserting after 
"paragraph (3) or (4) of subsection (d) of this section" the follow-
ing: "or paragraph (1) of subsection (h) of this section". 
(c) Section 221(f) of such Act is amended by inserting after 
"Housing Act of 1961," in the fourth sentence "or which meet the 
requirements of subsection (h),". 
(d) Section 305 (h) of such Act is amended by striking out "section 
221(d)(3)" and inserting in lieu thereof "sections 221(d)(3) and 
221(h)". 
APPLICATION 
OF DAVIS-BACON ACT TO COOPERATIVE HOUSING 
PROJECTS 
INSURED 
UNDER 
SECTION 
2 2 1 ( d ) ( 3 ) 
AND ( d ) ( 4 ) 
AND 
MORTGAGES 
INSURED UNDER SECTION 221 ( h ) ( 1 ) 
SEC 311. The third sentence of section 212(a) of the National 
79^stat^454°^' 
Housiug Act is amended by striking out "subsection (d) (3) or 
1
2 use ly'isc. 
(d) (4)." and inserting in lieu thereof "subsection (d) (3) or (d) (4) 
and (deeming the term 'construction' as used in the first sentence of 
this subsection to mean rehabilitation) of any mortgage described in 
subsection (h) (1) which covers property on which there is located a 
dwelling or dwellings designed principally for residential use for 
more than eight families; except that compliance with such provisions 
may be waived by the Secretary— 
"(1) with respect to mortgages described in such subsection 
(d) (3) or (d) (4), in cases or classes of cases where laborers or 
mechanics (not otherwise employed at any time in the construc-
75 Stat. 153. 
12 u s e 1720. 
80 STAT.] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1271 
tion of the project) voluntarily donate their services without 
compensation for the purpose of lowering their housing costs 
in a cooperative housing project and the Secretary determines 
that any amounts saved thereby are fully credited to the cooper-
ative undertaking the construction, and 
"(2) with respect to mortgages described in such subsection 
(h) (1), in cases or classes of cases where prospective owners of 
such dwellings voluntarily donate their services without com-
pensation, or other persons (not otherwise employed at .any tinie 
in the rehabilitation of the property) voluntarily donate their 
services without compensation, and the Secretary determines that 
any amounts saved thereby are fully credited to the nonprofit 
organization undertaking the rehabilitation." 
WAIVER OF DEDUCTION ON ASSIGNMENT OF PROPERTY TO 
SECRETARY I N LIEU OF FORECLOSURE 
SEC. 312. Title V of the National Housing Act is amended by add- 1/3^5^^^^ ^^^^^" 
ine: at the end thereof the followinsr new section: 
"WAIVER OF DEDUCTION ON ASSIGNMENT OF PROPERTY 
TO SECRETARY I N LIEU OF FORECLOSURE 
"SEC. 523. Notwithstanding any other provision of this Act, from 
and after the date of the enactment of the Demonstration Cities and 
Metropolitan Development Act of 1966, the Secretary, under such 
terms and conditions as he may approve, may waive all or a part of the 
1 per centum deduction otherwise made from insurance benefits with 
respect to multifamily housing or land development mortgages 
assigned to him, where the assignment is made at his request in lieu of 
foreclosure of the mortgage." 
TITLE IV—LAND DEVELOPMENT AND NEW 
COMMUNITIES 
EXPERIMENTAL MORTGAGE INSURANCE PROGRAM FOR N E W 
COMMUNITIES 
SEC. 401. (a) Title X of the National Housing Act is amended by 
J^ Jtan 463^^^ 
inserting after section 1003 the following new section 1004 and redesig-
nating the remaining sections accordingly: 
" N E W 
COMMUNITIES 
"SEC. 1004. (a) New communities consisting of developments, sat-
isfying all other requirements under this title, may be approved under 
this section by the Secretary for mortgage insurance if they meet the 
requirements of subsection (b) of this section. 
"(b) A development shall be eligible for approval as a new com-
munity if the Secretary determines it will, in view of its size and scope, 
make a substantial contribution to the sound and economic growth of 
the area within which it is located in the form of— 
"(1) substantial economies, made possible through large-scale 
development, in the provision of improved residential sites; 
"(2) adequate housing to be provided for those who would be 
employed in the community or the surrounding area ; 
"(3) maximum accessibility from the new residential sites to 
industrial or other emj)loyment centers and commercial, recrea-
tional, and cultural facilities in or near the community; and 
"(4) maximum accessibility to any major central city in the 
area. 
1272 
PUBLIC LAW 89-754-NOV. 3, 1966 
[80 STAT. 
" (c) No development shall be approved as a new community by the 
Secretary under this section unless the construction of such develop-
ment has been approved by the local governing body or bodies of the 
locality or localities in which it will be located and by the Governor 
of the State in which such locality or localities are situated: Provided, 
That if such locality or localities have been delegated general powers 
of local self-government by State law or State constitution, as deter-
mined by the Secretary, the approval of the Governor shall not be 
required. 
"(d) The aggregate amount of mortgages insured under this title 
with respect to new communities approved under this section and out-
standing at any one time shall not exceed $250,000,000." 
(b) No mortgage shall be insured under title X of the National 
Housing Act with respect to a new community approved under sec-
Ante, p. 1271. 
^JQJ^ JQQ^ ^f svioh. Act (as added by subsection (a) of this section) 
after October 1, 1972, except pursuant to a commitment to insure 
entered into before that date. 
MORTGAGE AMOUNT AND TERM 
SEC. 402. (a) Section 1002(c) of the National Housing Act is 
amended by striking out "$10,000,000" and inserting in lieu thereof 
"$25,000,000". 
(b) Section 1002(d) (1) of such Act is amended to read as follows: 
"(1) contain repayment provisions satisfactory to the Secretary 
and have a maturity not to exceed seven years, or such longer 
maturity as the Secretary deems reasonable (A) in the case of 
a privately owned system for water or sewerage, and (B) in the 
case of a new community approved under section 1004;". 
ENCOURAGEMENT OF SMALL BUILDERS 
79 Stat. 462. 
. 
• 
i 
• 
i 
1
2 use i749bb. 
SEC. 403. The section ot the National Housing Act redesignated 
as section 1005 by section 401 of this Act is amended by inserting 
"particularly small builders," after "broad participation by build-
ers,". 
., ..,,.., 
WATER AND SEWERAGE FACILITIES 
SEC. 404. The section of the National Housing Act redesignated 
as section 1006 by section 401 of this Act is amended to read as fol-
lows : 
" W A T E R AND SEWERAGE FACILITIES 
"SEC. 1006. After development of the land it shall be served by 
public systems for water and sewerage which are consistent with 
other existing or prospective systems within the area, except that— 
"(a) in the case of systems for water, the land may be served 
by privately or cooperatively owned systems which are consistent 
with other existing or prospective systems within the area; are 
approved as adequate by the Secretary; and are regulated or 
supervised by the State or political subdivision or an agency 
thereof, or (in the absence of such State or local reguhxtion or 
supervision) are otherwise regulated in a manner acceptable to 
the Secretary, with respect to user rates and charges, capital 
structure, methods of operation, rate of return, and conditions and 
terms of any sale or transfer; and 
80 STAT. 
PUBLIC LAW 89-754-NOV. 3, 1966 
1273 
"(b) in the case of systems for sewerage, the land may be 
served by— 
"(1) existing privately or cooperatively owned systems 
(including 
reasonable 
extensions 
thereto) 
which 
are 
approved as adequate by the Secretary, and which are regu-
lated or supervised by the State or political subdivision or an 
agency thereof, or (in the absence of such State or local regu-
lation or supervision) are otherwise regulated in a manner 
acceptable to the Secretary; or 
"(2) if it is necessary to develop a new system and the 
Secretary determines that public ownership of such a system 
is not feasible, an adequate privately or cooperatively owned 
new system (A) which he finds consistent with other existing 
or prospective systems within the area, (B) which during the 
period of such ownership will be regulated or supervised by 
the State or political subdivision or an agency thereof, or (in 
the absence of such State or local regulation or supervision) 
will be otherwise regulated in a manner acceptable to the Sec-
retary, with respect to user rates and charges, capital struc-
ture, methods of operation, and rate of return, and (C) 
regarding which he receives assurances, satisfactory to him, 
with respect to eventual public ownership and operation of 
the system and with respect to the conditions and terms of 
any sale or transfer." 
FEDERAL NATIONAL MORTGAGE ASSOCIATION SPECIAL ASSISTANCE FOR N E W 
COMMUNITIES 
SEC. 405. Section 302(b) of the National Housing Act is amended by ys^ltft^Vyg^^' 
inserting after "or title VIII," in the proviso the following: "or under 
1
2 use 1717. 
title X with respect to a new community approved under section 1004 
thereof,". 
URBAN PLANNING 
GRANTS 
SEC. 406. Section 701 (a) (4) of the Housing Act of 1954 is amended 
H J*|^'/Jf; 
by inserting before the semicolon at the end thereof the following: 
", or for areas where rapid urbanization is expected to result on land 
developed or to be developed as a new community approved under 
section 1004 of the National Housing Act". 
PUBLIC FACILITY LOANS 
SEC. 407. Section 202(b)(4) of the Housing Amendments of 1955 y/stfS^'sos^*'' 
is amended by adding before the period at the end of the second sen- 
42 use 1492. 
tence the following: ", or (iii) to be provided in connection with the 
establishment of a new community approved under section 1004 of 
the National Housing Act". 
TITLE V—MOKTGAGE INSURANCE FOR GROUP 
PRACTICE FACILITIES 
PURPOSE 
SEC. 501. It is the purpose of this title to assure the availability of 
credit on reasonable terms to units or organizations engaged in the 
group practice of medicine, optometry, or dentistry, particularly those 
in smaller communities and those sponsored by cooperative or other 
nonprofit organizations, to assist in financing the construction and 
equipment of group practice facilities. 
1274 
PUBLIC LAW 89-754-NOV. 3, 1966 
[80 STAT. 
ESTABLISHMENT 
OF PROGRAM 
12 u s e 1701. 
SEC. 502. (a) The National Housing Act is amended by adding at 
the end thereof the following new title: 
"TITLE XI—MOKTGAGE INSUEANCE FOK GROUP 
PRACTICE FACILITIES 
"INSURANCE or MORTGAGES 
"SEC. 1101. (a) The Secretary is authorized (1) to insure mort-
gages (including advances on such mortgages during construction), 
upon such terms and conditions as he may prescribe, in accordance 
with the provisions of this title, and (2) to make commitments for the 
insuring of such mortgages prior to the date of their execution or 
disbursement thereon. 
No mortgage shall be insured under this title 
after October 1, 1969, except pursuant to a commitment to insure 
issued before that date. 
" (b) To be eligible for insurance under this title, the mortgage shall 
(1) be executed by a mortgagor that is a group practice unit or orga-
nization, approved by the Secretaiy, (2) be made to and held by a mort-
gagee approved b}^ the Secretary as responsible and able to service 
the mortgage properly, and (3) cover a property or project which is 
approved for mortgage insurance prior to the beginning of construc-
tion or rehabilitation and is designed for use as a group practice facil-
ity which the Secretary finds will be constructed in an economical 
manner, will not be of elaborate or extravagant design or materials, 
and will be adequate and suitable for carrying out the purposes of this 
title. No mortgage shall be insured under this title unless it is shown 
to the satisfaction of the Secretary that the applicant would be unable 
to obtain the mortgage loan without such insurance on terms compa-
rable to those specified in subsection (c). 
"(c) The mortgage shall— 
"(1) not exceed $5,000,000; 
"(2) not exceed 90 per centum of the amount which the Secre-
tary estimates will be the value of the property or project when 
construction or rehabilitation is completed. 
The value of the 
property may include the land and the proposed physical improve-
ments, equipment, utilities within the boundaries of the property, 
architects' fees, taxes, and interest accruing during construction 
or rehabilitation, and other miscellaneous charges incident to 
construction or rehabilitation and approved by the Secretary; 
"(3) have a maturity satisfactory to the Secretary but not to 
exceed twenty-five years, and provide for complete amortization 
of the principal obligation by periodic payments within such 
term as the Secretary shall prescribe; and 
"(4) bear interest (exclusive of premium charges for insur-
ance, and service charges if any) at a rate of not to exceed 5 
per centum per annum of the amount of the principal obligation 
outstanding at any time, or not to exceed such rate (not in excess 
of 6 per centum per annum) as the Secretary finds necessary to 
meet the mortgage market. 
"(d) Any contract of insurance executed by the Secretary under 
this title shall be conclusive evidence of the eligibility of the mortgage 
for insurance, and the validity of any contract for insurance so 
executed shall be incontestable in the hands of an approved mortgagee 
from the date of the execution of such contract, except for fraud or 
misrepresentation on the part of such approved mortgagee. 
80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1275 
" (e) Each mortgage insured under this title shall contain an under-
taking (in accordance with regulations prescribed under this title and 
in force at the time the mortgage is approved for insurance) to the 
effect that, except as authorized oy the Secretary and the mortgagee, 
the property will be used as a group practice facility until the mort-
gage has been paid in full or the contract of insurance otherwise 
terminated. 
"(f) No mortgage shall be insured under this title unless the mort- 
Recordkeeping. 
gagor and the mortgagee certify (1) that they will keep such records 
relating to the mortgage transaction and indebtedness, to the construc-
tion of the facility covered by the mortgage, and to the use of such 
facility as a group practice facility as are prescribed by the Secretary 
at the time of such certification, (2) that they will make such reports 
as may from time to time be required by the Secretary pertaining to 
such matters, and (3) that the Secretary shall have access to and the 
right to examine and audit such records. 
"PREMIUMS 
"SEC. 1102. The Secretary shall fix premium charges for the insur-
ance of mortgages under this title, but such charges shall not be more 
than 1 per centum per annum of the amount of the principal obligation 
of the mortgage outstanding at any time, without taking into account 
delinquent payments or prepayments. In addition to the premium 
charge, the Secretary is authorized to charge and collect such amounts 
as he may deem reasonable for the analysis of a proposed project and 
the appraisal and inspection of the property and improvements. 
Where the principal obligation of any mortgage accepted for insur-
ance under this title is paid in full prior to the maturity date, the 
Secretary is authorized to require the payment by the mortgagee of 
an adjusted premium charge. This charge shall be in such amount 
as the Secretary determines to be equitable, but not in excess of the 
aggregate aanount of the premium charges that the mortgagee would 
otherwise have been required to pay if the mortgage had continued 
to be insured until the maturity date. Where such prepayment occurs, 
the Secretary is authorized to refund to the mortgagee for the account 
of the mortgagor all, or such portion as he shall determine to be 
equitable, of the current unearned premium charges theretofore paid. 
Premium charges fixed under this section shall be payable by the mort-
gagee either in cash, or in debentures which are the obligation of the 
General Insurance Fund at par plus accrued interest, at such times 
and in such manner as may be prescribed by the Secretary. 
" P A Y M E N T o r INSURANCE BENEFITS 
"SEC. 1103. The mortgagee shall be entitled to receive the benefits 
of the insurance under this title in the manner provided in subsection 
(g) of section 207 with respect to mortgages insured under that sec- 
1
2 use 1713. 
tion. For such purpose the provisions of subsections (g), (h), (i), 
(j), (k), (1), and (n) of section 207 shall apply to mortgages insured 
under this title and all references in such subsections to section 207 
shall be deemed to refer to this title. 
"REGULATIONS 
"SEC. 1104. The Secretary shall prescribe such regulations as may 
be necessary to carry out this title, after consulting with the Secretary 
of Health, Education, and Welfare with respect to any health or 
medical aspects of the program under this title which may be involved 
in such regulations. 
1276 
PUBLIC LAW 89-754-NOV. 3, 1966 
[80 STAT. 
u 
ADMINISTRATION 
"SEC. 1105. (a) At the request of individuals or organizations oper-
ating or contemplating the operation of group practice facilities (as 
defined in section 1106(1)), the Secretary may provide or obtain 
technical assistance in the planning for and construction of such 
facilities. 
"(b) With a view to avoiding unnecessary duplication of existing 
staffs and facilities of the Federal Government, the Secretary is author-
ized to utilize available services and facilities of any agency of the 
Federal Government in carrying out the provisions of this title, and 
to pay for such services and facilities, either in advance or by way 
of reimbursement, in accordance with an agreement between the Secre-
tary and the head of such agency. 
"DEFINITIONS 
"SEC. 1106. For the purposes of this title— 
"(1) The term 'group practice facility' means a facility in a State 
for the provision of preventive, diagnostic, and treatment services to 
ambulatory patients (in w^hich patient care is under the professional 
supervision of persons licensed to practice medicine in the State or, 
in the case of optometric care or treatment, is under the professional 
supervision of persons licensed to practice optometry in the State, or, 
in the case of dental diagnosis or treatment, is under the professional 
supervision of persons licensed to practice dentistry in the State) and 
which is primarily for the provision of such health services by a medi-
cal or dental group. 
"(2) The term 'medical or dental group' means a partnership or 
other association or group of persons licensed to practice medicine or 
surgery in the State, or of persons licensed to practice optometry in the 
State, or of persons licensed to practice dentistry in the State, or of 
any combination of such persons, who, as their principal professional 
activity and as a group responsibility, engage or undertake to engage 
in the coordinated practice of their profession primarily in one or 
more group practice facilities, and who (in this connection) share 
common overhead expenses (if and to the extent such expenses are 
paid by members of the group), medical and other records, and sub-
stantial portions of the equipment and the professional, technical, and 
administrative staffs, and which partnership or association or ^roup 
is composed of at least such professional personnel and make available 
at least such health services as may be provided in regulations pre-
scribed under this title. 
"(3) The term 'group practice unit or organization' means— 
"(A) a private nonprofit agency or organization undertaking 
to provide, directly or through arrangements with a medical or 
dental group, comprehensive medical care, optometric care, or 
dental care, or any combination thereof, which may include hos-
pitalization, to members or subscribers primarily on a group prac-
tice prepayments basis; or 
"(B) a private nonprofit agency or organization established 
for the purpose of improving the availability of medical, optomet-
ric, or dental care in the community or having some function 
or functions related to the provision of such care, which will, 
through lease or other arrangement, make the group practice 
facility with respect to which assistance has been requested under 
this title available to a medical or dental group for use by it. 
" (4) The term 'nonprofit organization' means a corporation, associa-
tion, foundation, trust, or other organization no part of the net earn-
ings of which inures, or may lawfully inure, to the benefit of any 
80 STAT. ] 
PUBLIC LAW 89.754-NOV. 3, 1966 
1277 
private slmreliolder or iiulividual except, in tlie case of an or^ianiza-
tion the purposes of which include the provision of personal health 
services to its members or subscribers or their dependents under a plan 
of such organization for the provision of such services to them (which 
plan may include the provision of other services or insurance bene-
fits to them), through the provision of such health services (or such 
other services or insurance benefits) to such members or subscribers or 
dependents under such plan. 
"(5) The term 'State' includes the Commonwealth of Puerto Rico, 
Guam, the Virgin Islands, American Samoa, and the District of 
Columbia. 
"(6) The term 'mortgage' means a first mortgage on real estate in 
fee simple, or on the interest of either the lessor or lessee thereof (A) 
under a lease for not less than ninety-nine years which is renewable, 
or (B) under a lease having a period of not less than fifty years to 
run from the date the mortgage was executed. The term 'first mort-
gage' means such classes of first liens as are commonly given to secure 
advances (including but not limited to advances during construction) 
on, or the unpaid purchase price of, real estate under the laws of the 
State in which the real estate is located, together with the credit 
instrument or instruments, if any, secured thereby, and any mortgage 
may be in the form of one or more trust mortgages or mortgage 
indentures or deeds of trust, securing notes, bonds, or other credit 
instruments, and, by the same instrument or by a separate instrument, 
may create a security interest in initial equipment, whether or not 
attached to the realty. 
"(7) The term 'mortgagee' means the original lender under a mort-
gage, and his or its successors and assigns, and includes the holders 
of credit instruments issued under a trust mortgage or deed of trust 
pursuant to which such holders act by and through a trustee named 
therein. 
"(8) The term 'mortgagor' means the original borrower under a 
mortgage and his or its successors and assigns.' 
(b) The first sentence of section 227 of such Act is amended by 
^^ ^*^'- ^°7-
inserting after "new or rehabilitated multifamily housing'" the follow-
ing: "or a property or project described in title XI". 
LABOR STANDARDS 
SEC. 503. Section 212(a) of the National Housing Act is amended 
^^ f
,
'
^
'
* ^i*^* 
by adding at the end thereof the following new sentence: "The pro-
visions of this section shall also apply to the insurance of any mortgage 
under title X I ; and each laborer or mechanic employed on any facility 
covered by a mortgage insured under such title shall receive compensa-
tion at a rate not less than one and one-half times his basic rate of pay 
for all hours worked in any workweek in excess of eight hours in any 
workday or forty hours in the workweek, as the case may be." 
AMENDMENTS TO OTHER FEDERAL LAWS 
SEC. 504. (a)(1) The sixth sentence of paragraph "Seventh" of 
section 5136 of the Revised Statutes, as amended (12 U.S.C. 24), is 
amended by inserting after "Federal Home Loan Banks," the follow-
ing: "or obligations which are insured by the Secretary of Housing 
and Urban Development under title X I of the National Housing Act". 
(2) The third sentence of the first paragraph of section 24 of the 
Federal Reserve Act, as amended (12 U.S.C. 371), is amended by 
eg stat. 633. 
inserting after "or sections 1471-1484 of title 42," the following: "or 
65-300 0-67—83 
52 Stat. 902. 
1278 
PUBLIC LAW 89-754-NOV. 3, 1966 
[SO STAT. 
which are insured by the Secretary of Housing and Urban Develop-
ment pursuant to title X I of the National Housing Act,". 
(b) Subsection (a) of section 304 of the Trust Indenture Act of 
53 Stat. 1153. 
^939 (^5 U.S.C. 77ddd) is amended by striking out the word "or" 
at the end of paragraph (8) ; by striking out the period at the end of 
paragraph (9) and inserting in lieu thereof a semicolon and the word 
"or"; and by adding after paragraph (9) a new paragraph as follows: 
"(10) any security issued under a mortgage or trust deed 
indenture as to which a contract of insurance under title X I of 
the National Housing Act is in effect; and any such security 
shall be deemed to be exempt from the provisions of the Securi-
ties Act of 1933 to the same extent as though such security were 
specifically enumerated in section 3(a)(2), as amended, of the 
48 Stat. 906. 
Securitles Act of 1933 (15 U.S.C. 77c(a) (2))." 
(c) Section 263 of chapter X of the Bankruptcy Act (11 U.S.C. 663) 
is amended by adding at the end thereof the following: "Nothing 
contained in this chapter shall be deemed to affect or apply to the 
creditors of any corporation under a mortgage insured pursuant to 
title X I of the National Housing Act." 
TITLE VI—PRESERVATION OF HISTORIC STRUCTURES 
PRESERVATION OF HISTORIC STRUCTURES AS PART OF URBAN 
RENEWAL 
PROJECTS 
SEC. 601. (a) Section 110(b) of the Housing Act of 1949 is amended 
by inserting "historic and architectural preservation," after "land 
acquisition,". 
(b) Section 110(c)(6) of such Act is amended by inserting 
"to promote historic and architectural preservation," after "dete-
rioration,". 
(c) Section 110(c) of such Act is further amended by striking 
out "and" at the end of clause (8), and by striking out clause (9) 
and inserting in lieu thereof the following: 
"(9) relocation within or outside the project area of structures 
which will be restored and maintained for architectural or his-
toric purposes; and 
"(10) restoration of acquired properties of historic or archi-
tectural value." 
LOCAL GRANT-IN-AID CREDIT FOR REIX)CATI0N AND RESTORATION OF 
HISTORIC 
STRUCTURES 
68 Stat. 626. 
gjj^. gQ2, Clausc (2) of section 110(d) of the Housing Act of 1949 
is amended by striking out "clause (2) and clause (3)" and inserting 
inlieu thereof "clauses (2), (3), (9), and (10)". 
GRANTS TO NATIONAL TRUST FOR HISTORIC PRESERVATION TO COVER 
RESTORATION 
COSTS 
SEC. 603. (a) The Secretary of Housing and Urban Development 
is authorized to make grants to the National Trust for Historic Preser-
vation, on such terms and conditions and in such amounts (not exceed-
ing $90,000 with respect to any one structure) as he deems appropriate, 
to cover the costs incurred by such Trust in renovating or restoring 
structures which it considers to be of historic or architectural value and 
which it has accepted and will maintain (after such renovation or 
restoration) for historic purposes. 
(b) There are authorized to be appropriated such sums as may be 
necessary for the grants to be made under subsection (a). 
71 Stat. 301. 
42 u s e 1460. 
70 Stat. 1097. 
80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1279 
URBAN PLANNING GRANTS FOR SURVEYS OF HISTORIC STRUCTURES 
SEC. 604. Section 701 of the Housing Act of 1954 is amended by 
H l'^'^'^eu 
adding at the end thereof the following new subsection: 
"(h) In addition to the other grants authorized by this section, the 
Secretary is authorized to make grants to assist any city, other munic-
ipality, or county in making a survey of the structures and sites in 
such locality which are determined by its appropriate authorities to be 
of historic or architectural value. Any such survey shall be designed 
to identify the historic structures and sites in the locality, determine 
the cost of their rehabilitation or restoration, and provide such other 
information as may be necessary or appropriate to serve as a founda-
tion for a balanced and effective program of historic preservation in 
such locality. The aspects of any such survey which relate to the iden-
tification of historic and architectural values shall be conducted in 
accordance with criteria found by the Secretary to be comparable to 
those used in establishing the National Register maintained by the 
Secretary of the Interior under other provisions of law; and the 
results of each such survey shall be made available to the Secretary of 
the Interior. 
A grant under this subsection shall not exceed two-
thirds of the cost of the survey for which it is made, and shall be made 
to the appropriate agency or entity specified in paragraphs (1) 
through (9) of subsection (a) or, if there is no such agency or entity ^^^^ yg^sta't^^'y 
which is qualified and willing to receive the grant and provide for its 
utilization in accordance w4th this subsection, directly to the city, other 
municipality, or county involved." 
GRANTS FOR HISTORIC PRESERVATION 
SEC. 605. (a) The heading of title VII of the Housing Act of 1961 
^ Jt|^ ^isa^. 
is amended to read as follows: 
42 u s e 1500 
et 
seq. 
"TITLE VII—OPEN-SPACE LAND, URBAN BEAUTIFICA-
TION, AND HISTORIC PRESERVATION". 
(b) Section 701 of such Act is amended by redesignating subsection 
(c) as subsection (d), and by inserting after subsection (b) a new sub- 
^^ ^*^'* '*^'^* 
section as follows: 
"(c) The Congress further finds that there is a need for timely 
action to preserve and restore areas, sites, and structures of historic 
or architectural value in order that these remaining evidences of 
our past history and heritage shall not be lost or destroyed through the 
expansion and development of the Nation's urban areas." 
(c) Section 701(d) of such Act (as redesignated by subsection (b) 
of this section) is amended— 
(1) by inserting after "urban development," the following: "to 
assist in preserving areas and properties of historic or architec-
tural value,"; and 
(2) by striking out "and (2)" and inserting in lieu thereof 
"(2) acquire, improve, and restore areas, sites, and structures of 
historic or architectural value, and (3)". 
(d) Section 702 (e) of such Act is amended to read as follows: 
^^ ^*^'* ^^'*' 
"(e) The Secretary shall consult with the Secretary of the Interior 
on the general policies to be followed in reviewing applications for 
§rants under this title. To assist the Secretary in such review, the 
ecretary of the Interior shall furnish him (1) appropriate informa-
tion on the status of national and statewide recreation and historic 
preservation 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, 
1280 
PUBLIC LAW 89-754-NOV. 3, 1966 
[SO STAT. 
archeology, and culture which may be contained on a National Reg-
ister maintained by the Secretary of the Interior pursuant to other 
provisions of law. The Secretary shall provide current information 
to the Secretary of the Interior from time to time on significant pro-
gram developments." 
42 use' i*5(f6c-2 
(^) Section 706 of such Act is amended by striking out the proviso. 
42 use isood' " 
(f) Section 708 of such Act is amended by inserting " ( a ) " after 
"SEC. 708.", by inserting " ( b ) " before "The" in the second paragraph, 
and by adding at the end thereof a new subsection as follows: 
"(c) Notwithstanding any other provision of this title, the Secre-
tary may use not to exceed $10,000,000 of the sum authorized for 
contracts under this title for the purpose of entering into contracts 
to make grants in amounts not to exceed 90 per centum of the cost of 
activities which he determines have special value in developing and 
demonstrating new and improved methods and materials for use in 
carrying out the purposes of this title." 
42 use isooe. 
^g^ Title VII of such Act is amended by redesignating section 709 
as section 710, and by adding after section 708 a new section as 
follows: 
"GRANTS FOR HISTORIC PRESERVATION 
"SEC. 709. The Secretary is authorized to enter into contracts to 
make grants to States and local public bodies to assist in the acquisi-
tion of title to or other permanent interests in areas, sites, and struc-
tures of historic or architectural value in urban areas, and in their 
restoration and improvement for public use and benefit, in accord with 
the comprehensively planned development of the locality. 
The 
amount of any such grant shall not exceed 50 per centum of the total 
cost, as approved by the Secretary, of the assisted activities. 
The 
remainder of such cost shall be provided from non-Federal sources." 
(h) Commencing three years after the date of the enactment of this 
Act, no grant shall be made (except pursuant to a contract or com-
mitment entered into less than three years after such date) under 
^"P'^- 
section 709 of the Housing Act of 1961 or section 701 (h) of the Hous-
i2'79!^i2^o*. 
^i^g -^^^ ^^ 1954, or under section 103 of the Housing Act of 1949 to 
the extent that it is to be used for historic or architectural preserva-
tion, except with respect to districts, sites, buildings, structures, and 
objects which the Secretary of Housing and Urban Development finds 
meet criteria comparable to those used in establishing the National 
Register maintained by the Secretary of the Interior pursuant to other 
provisions of law. 
TITLE VII—URBAN RENEWAL 
LOCAL G R A N T S - I N - A I D 
68 Stat. 626. 
QEC. 701. Scction 110(d) of the Housing Act of 1949 is amended by 
mserting immediately^ after the colon at the end of the first proviso 
the following: ^''Provided further. That any publicly owned facility, 
the construction of which was begun not earlier than three years prior 
to the date of enactment of the Demonstration Cities and Metropoli-
tan Development Act of 1906, shall be deemed to benefit an urban 
renewal project or projects to the extent of 25 per centum of the total 
benefits of such facility, or $3,500,000, whichever is less, if such fa-
cility (A) (i) is used, or is to be used, by the public predominantly 
for cultural, exhibition, or civic purposes, or is a city hall or a public 
safetj^ building, or (ii) is a facility, constructed or rehabilitated by a 
public university, which is or will be devoted to the treatment of physi-
cal or mental disabilities and illness or to medical research; (B) is 
located within, adjacent to, or in the immediate vicinity of such urban 
42 use 1460. 
80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1281 
renewal project or projects; (C) is found to contribute materially to 
the objectives of the urban renewal plan or plans for such project or 
projects; and (D) is not otherwise eligible as a local grant-in-aid:". 
AIR RIGHTS SITES I N URBAN RENEWAL 
PROJECTS 
SEC. 702. (a) Section 110(c)(1) of the Housing Act of 1949 is 
IH^'^^^^ 
amended by inserting in clause (iv), between the word "income" and 
the colon immediately preceding the first proviso, the following: "or, 
if the area is found by the local public agency to be unsuitable for use 
for low or moderate income housing, for use for industrial develop-
ment". 
(b) Section 110(c) (7) of such Act is amended by inserting imme- 
^^ ^*^'' ^^^* 
diately before the semicolon the following: ", or construction of foun-
dations and platforms necessary for the provision of air rights sites 
for industrial development". 
ADDITIONAL 
REQUIREMENTS FOR REDEVELOPMENT 
OF URBAN 
RENEWAL 
AREA 
63 Stat. 416. 
42 u s e 1455. 
SEC. 703. (a) Section 105 of the Housing Act of 1949 is amended by 
adding at the end thereof the following new subsection: 
"(f) The redevelopment of the urban renewal area, unless such 
redevelopment is for predominantly nonresidential uses, will provide 
a substantial number of units of standard housing of low and moderate 
cost and result in marked progress in serving the poor and disad-
vantaged people living in slum and blighted areas." 
(b) The amendment made by subsection (a) shall apply only in 
the case of contracts for loans or capital grants which are made with 
respect to urban renewal projects undertaken pursuant to urban 
renewal plans approved after the date of the enactment of this Act. 
THREE-FOURTHS GRANTS FOR PROJECTS IN CERTAIN 
REDEVELOPMENT AREAS 
SEC. 704. Section 103(a)(2)(B) of the Housing Act of 1949 is 
lUTcu^i. 
amended by inserting after "to avoid hardship," the following: "or 
at any time after such contract or contracts are entered into and prior 
to the time the final grant payment has been made pursuant thereto,". 
75 Stat. 169. 
42 u s e 1463. 
EXPENDITURES BY EDUCATIONAL INSTITUTIONS AND HOSPITALS 
SEC. 705. Section 112(a) of the Housing Act of 1949 is amended 
by inserting before the period at the end thereof the following: ": Pro-
vided further, 
That no such expenditure shall be deemed ineligible 
as a local grant-in-aid in connection with an urban renewal project, to 
the extent that the expenditure is otherwise eligible, if the facilities, 
land, buildings, or structures with respect to which the expenditure 
is made are located within one mile of the project". 
REQUIREMENT or SEPARATE SEWER SYSTEMS IN REDEVELOPMENT OF 
URBAN RENEWAL AREA 
SEC. 706. Section 105 of the Housing Act of 1949 is amended by ^2 use 1455. 
adding at the end thereof (after the new subsection added by section 
703 of this Act) the following new subsection: 
"(g) Consideration has been given to development of a sewer system 
to serve the urban renewal area which will, to the maximum extent 
feasible, provide for effective control of storm and sanitary wastes." 
42 use 1472. 
42 use 1474. 
42 use 1485. 
79 Stat. 498. 
42 use 1487. 
1282 
PUBLIC LAW 89-754-NOV. 3, 1966 
[sO STAT. 
TITLE VIII—EURAL HOUSING 
42 use M
7
^
i
*
. 
SE^- ^01- Section 501(a) of the Housing Act of 1949 is amended 
by striking out "previously occupied" wherever it appears. 
76 Stat. 671. 
^^^^ 8()2. Sectiou 502(a) of the Housing Act of 1949 is amended by 
striking out "In cases of applicants who are elderly persons, the and 
inserting in lieu therof "The". 
SEC. 803. Section 504 of the Housing Act of 1949 is amended by 
striking out "$1,000" and inserting in lieu thereof "$1,500". 
SEC. 804. (a) Section 515(a) of the Housing Act of 1949 is amended 
by inserting after "income" the following: "or other persons and 
families of low income". 
(b) Section 515(d)(1) of such Act is amended by striking out 
"elderly persons or elderly families" and inserting in lieu thereof 
"occupants eligible under this section". 
SEC. 805. (a) Subsections (a) and (b) of section 515 of the Hous-
ing Act of 1949 are each amended by striking out "rental housing" 
and inserting in lieu thereof "rental or cooperative housing". 
(b) Section 515(b) of such Act is amended by inserting after "fam-
ilies" the following: "or other persons and families of moderate 
income". 
(c) Section 515(d) (4) of such Act is amended by adding at the end 
thereof the following: "Such fees and charges may include payments 
to qualified consulting organizations or foundations which operate on 
a nonprofit basis and which render services or assistance to nonprofit 
corporations or consumer cooperatives who provide housing and 
related facilities." 
SEC. 806. Section 517(a)(1) 
of the Housing Act of 1949 is 
amended— 
(1) by inserting "and" before " ( B ) " ; and 
(2) by striking out ", and (C)" and all that follows and insert-
ing in lieu thereof the following: "; but no loan under this para-
graph shall be insured or made after October 1,1969, except pur-
suant to a commitment entered into before that date; and". 
SEC. 807. (a) Section 501(a) of the Housing Act of 1949 is 
amended by inserting before the period at the end thereof the fol-
lowing: ", and (4) to an owner described in clause (1), (2), or (3) 
for refinancing indebtedness which— 
"(A) was incurred for an eligible purpose described in such 
clause, 
"(B) if not refinanced, is likely to result at an early date in 
loss of the applicant's necessary dwelling or essential farm service 
buildings, 
"(C) is not held or insured by the United States or any agency 
thereof, and 
"(D) was incurred prior to the enactment of this clause." 
42 use 1471. 
^i3^ Section 501(c) of such Act is amended by inserting before the 
semicolon at the end of clause (1) the following: ", or that he is the 
owner of a farm or other real estate in a rural area who needs refinanc-
ing of indebtedness described in clause (4) of subsection (a)". 
TITLE IX—URBAN INFORMATION AND TECHNICAL 
ASSISTANCE SERVICES 
PURPOSE 
SEC. 901. It is the purpose of this title to assist States to make avail-
able information and data on urban needs and assistance programs 
and activities, and to provide technical assistance, to small com-
munities with respect to the solution of urban problems. 
80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1283 
GRANT AUTHORITY 
SEC. 902. (a) The Secretary is authorized to make grants to States 
to help finance programs to provide information and data on urban 
needs and assistance programs and activities, and to provide technical 
assistance, to small communities with respect to the solution of local 
problems. Activities aided by such grants may include— 
(1) the assembly, correlation, and dissemination of urban 
physical, social, and economic development information and data 
for the purpose of informing local governments of small com-
munities, and interested organizations and individuals, of the 
availability and status of Federal, State, and local programs and 
other resources and data for the solution of urban problems; and 
(2) providing technical assistance with respect to the solution 
of urban problems to any small community requesting such 
assistance. 
(b) A program assisted under this section shall— 
' 
(1) specify the information and technical assistance activities 
to be carried on and justify the needs for the costs of such activi-
ties; and 
(2) represent substantially increased or improved activities on 
the part of the applicant State agency. 
AMOUNT 
OF GRANT 
SEC. 903. (a) A grant under this section shall not exceed 50 per 
centum of the cost of the activities carried on under an approved 
urban information and technical assistance program, 
(b) No grant shall be made under this title to assist in assembling 
data, or providing information, to be used primarily in the day to 
day operations of State or local governing bodies and agencies. 
COOPERATION AND 
COORDINATION 
SEC. 904. (a) Federal departments and agencies shall cooperate 
with States in providing information to assist in carrying out the 
purpose of this title. 
(b) In the administration of this title, the Secretary shall seek to 
ensure the greatest practicable coordination of urban information and 
technical assistance programs established under this title. 
DEFINITIONS 
SEC. 905. As used in this title— 
(1) "State" means any State of the United States, the Com-
monwealth of Puerto Rico, the Virgin Islands, Guam, Amer-
ican Samoa, or an agency or instrumentality designated by the 
chief executive of an^ of the foregoing, or a statewide agency 
or instrumentality of its political subdivisions designated by such 
chief executive. 
(2) "Secretary" means the Secretary of Housing and Urban 
Development. 
(3) "Small communities" means communities having popula-
tions of less than one hundred thousand according to the most 
recent decennial census. 
1284 
PUBLIC LAW 89-754-NOV. 3, 1966 
[SO STAT. 
APPROPRIATIONS 
SEC. 906. There are authorized to be appropriated for the purpose 
of carrying out the provisions of this title not to exceed $2,500,000 
for the fiscal year ending June 30, 1967, and not to exceed $5,000,000 
for the fiscal year ending June 30, 1968. Appropriations authorized 
under this section shall remain available until expended. 
TITLE X—MISCELLANEOUS 
HOUSING FOR T H E ELDERLY OR HANDICAPPED 
SEC. 1001. Section 105(b) of the Housing and Urban Develop-
1o f
,
*
<
f
^
- I'^lm 
ment Act of 1965 is amended— 
note. 
"" 
(1) by inserting "(1)" after " ( b ) " ; 
(2) by striking out "Effective with respect to loans made on 
or after the date of the enactment of this Act, section" and 
inserting in lieu thereof "Section"; and 
(3) by adding at the end thereof a new paragraph as follows: 
"(2) The interest rate provided hj the amendment made in para-
graph (1) shall be applicable (A) with respect to any loan made on 
or after August 10, 1965, and (B) with respect to any loan made 
prior to such date if construction of the housing or related facilities 
to be assisted by such loan was not commenced prior to such date, and 
not completed prior to the filing of an application for the benefits of 
such interest rate." 
LOW-RENT HOUSING I N PRIVATE ACCOMMODATIONS—TERM OF LEASE 
SEC. 1002. Section 23(d) of the United States Housing Act of 
42 us^c* i
*
4
2
^
*
b
. 
1937 is amended by striking out "thirty-six months" and inserting 
in lieu thereof "sixty months". 
APPLICATION o r DAVIS-BACON ACT TO LOW-RENT HOUSING PROJECTS 
CONSISTING OF PRIVATELY BUILT 
HOUSING 
42 use M^e 
^^^' ^^^^- Section 16(2) of the United States Housing Act of 1937 
is amended by inserting after "the development of the project 
involved" the following: " (including a project for the use of privately 
built housing in any case, other than under the authority of section 
23 of this Act, where the public housing agency and the builder or 
sponsor enter into an agreement for such use before construction or 
rehabilitation is commenced), and that each such laborer or mechanic 
shall receive compensation at a rate not less than one and one-half 
times his basic rate of pay for all hours worked in any workweek in 
excess of eight hours in any workday or forty hours in the workweek, 
as the case may be". 
ASSISTANCE FOR HOUSING I N ALASKA 
SEC 1004. (a) The Secretary of Housing and Urban Development 
(hereinafter refeired to as the "Secretary") is authorized to make 
loans and grants to the State of Alaska, or any duly authorized agency 
or instrumentality thereof, in accordance with a statewide program 
prepared by such State, agency, or instrumentality, and approved by 
the Secretary, to assist in the provision of housing and related facil-
ities for Alaska natives and other Alaska residents who are otherwise 
unable to finance such housing and related facilities upon terms and 
conditions which they can afford. The program shall (1) specify the 
12 u s e 1715e, 
1715k. 
niSl. 
80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1285 
minimum and maximum standards for such housing and related 
facilities (not to exceed an average of $7,500 per dwellmg unit) ; (2) 
to the extent feasible, encourage the proposed users of such housing 
and related facilities to utilize mutual and self-help in the construc-
tion thereof; and (3) provide experience, and encourage continued 
participation, in self-government and individual home ownership. 
(b) Grants under this section shall not exceed 75 per centum of 
the aggregate cost of the housing and related facilities to be con-
structed under an approved program. 
(c) There is authorized to be appropriated not to exceed $10,000,000 
to carry out the purposes of this section. 
FEDERAL NATIONAL MORTGAGE ASSOCIATION PARTICIPATION I N 
FEDERAL 
HOUSING ADMINISTRATION-INSURED CONSTRUCTION 
FINANCING 
SEC. 1005. Section 305 of the National Housing Act is amended by 
^^ stat. eie. 
adding at the end thereof the following new subsection: 
" (i) In any case where the Association makes a commitment to pur-
chase under this section (1) a mortgage insured under section 213, (2) 
a mortgage insured under section 220, or (3) a mortgage insured under 
section 221(d) (3) and executed by a cooperative (including an inves-
tor-sponsor), a limited dividend corporation, a private non-profit 
corporation or association, or a mortgagor qualified under section 
221(e), such commitment may provide for participation by the Asso-
ciation in the making of insured advances on the mortgage during con-
struction. Such participation shall be limited to 95 per centum of the 
amount of each of the advances involved, and the mortgagee provid-
ing the balance of such amount shall perform all necessary servicing 
and processing of such advances until the final insurance endorse-
ment of the mortgage. The Secretary of Housing and Urban Devel-
opment shall approve the reasonableness of the fee to be paid a partici-
pating mortgagee, taking into account its services and the extent of its 
participation in the advances." 
F E D E R A L NATIONAL MORTGAGE ASSOCIATION SPECIAL ASSISTANCE FOR 
FINANCING 
LOW-COST 
HOMES 
SEC. 1006. The Congress hereby finds that the sharp decline in new 
home construction over the past year threatens to undercut our pres-
ent high level of prosperity and employment as such declines have in 
the past; that the substantial reduction which has taken place has had 
its greatest impact on families of modest income who are seeking to 
achieve the goal of homeownership; that this decline in homebuilding 
is due primarily to the shortage of mortgage financing on terms which 
moderate income families can afford; and that our national policy 
objectives in the field of housing and community development are 
thereby being thwarted. 
The Congress therefore expresses its intent 
that the special assistance funds made available to the Federal 
National Mortgage Association for the financing of new low-cost 
homes by the Act of September 10,1966 (Public Law 89-556), should 
be released immediately to halt the continuing decline in the con-
struction of new homes for families of moderate income. 
FEDERAL NATIONAL MORTGAGE ASSOCIATION STANDBY COMMITMENTS 
SEC. 1007. Section 304(a)(1) of the National Housing Act is 
amended by striking out the last sentence. 
Ante, p. 738. 
75 Stat. 176. 
12 u s e 1719. 
1286 
PUBLIC LAW 89-754-NOV. 3, 1966 
[80 STAT. 
P L A N N I N G GRANTS FOR RESEARCH ON STATE STATUTES AFFECTING LOCAL 
GOVERNMENTS 
40 us^c 4
^
6
1
°
; 
^.^^- ^^^^- Section 701(b) of the Housing Act of 1954 is amended 
by inserting before the period at the end thereof the following: ", and 
for grants to assist in the conduct of studies and research relating to 
needed revisions in State statutes which create, govern, or control local 
governments and local governmental operations". 
PUBLIC FACILITY 
LOANS 
75^stat!V74?' 
SEC. 1009. Sectlon 202 of the Housing Amendments of 1955 is 
76 Stat! 543! 
amended by adding at the end thereof a new subsection as follows: 
42 use 1492. 
u^j.^ rpj^g restrictions and limitations set forth in subsection (c) of 
this section shall not apply to assistance to municipalities, other politi-
cal subdivisions and instrumentalities of one or more States, and 
Indian tribes, for specific projects for cultural centers, including but 
not limited to, museums, art centers and galleries, and theaters and 
other physical facilities for the performing arts, which would be of 
cultural, educational, and informational value to the communities and 
areas where the centers would be located." 
APPLYING ADVANCES I N TECHNOLOGY TO HOUSING 
AND 
URBAN 
DEVELOPMENT 
SEC. 1010. (a) To encourage and assist the housing industry to 
continue to reduce the cost and improve the quality of housing by 
the application to home construction of advances in technology, and 
to encourage and assist the application of advances in technology 
to urban development activities, the Secretary of Housing and 
Urban Development (hereinafter referred to as the "Secretary") is 
directed to— 
(1) conduct research and studies to test and demonstrate new 
and improved techniques and methods of applying advances in 
technology to housing construction, rehabilitation, and main-
tenance, and to urban development activities; and 
(2) encourage and promote the acceptance and application of 
new and improved techniques and methods of constructing, reha-
bilitating, and maintaining housing, and the application of 
advances in technology to urban development activities, by all 
segments of the housing industry, communities, industries 
engaged in urban development activities, and the general public. 
(b) Research and studies conducted under this section shall be 
designed to test and demonstrate the applicability to housing construc-
tion, rehabilitation, and maintenance, and urban development activi-
ties, of advances in technology relating to (1) design concepts, (2) 
construction and rehabilitation methods, (3) manufacturing processes, 
(4) materials and products, and (5) building components. 
(c) The Secretary is authorized to carry out the research and 
studies authorized by this section either directly or by contract with 
public or private bodies or agencies, or by working agreement with 
departments and agencies of the Federal Government, as he may 
determine to be desirable. Contracts may be made by the Secretary 
for research and studies authorized by this section for work to con-
tinue not more than two years from the date of any such contract. 
(d) There are authorized to be appropriated to carry out the pro-
visions of this section not to exceed $5,000,000 for the fiscal year 
ending June 30,1967, and not to exceed $10,000,000 for the fiscal year 
ending June 30, 1968. 
All funds so appropriated shall remain 
available until expended. 
80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1287 
(e) Nothing contained in this section shall limit any authority of 
the Secretary under title I I I of the Housing Act of 1948, section 602 f
^ sta^ 43u^^ 
of the Housing Act of 1956, or any other provision of law. 
i7oif-i. 
URBAN ENVIRONMENTAL STUDIES 
70 Stat. 1113. 
12 u s e 1701d-3. 
SEC. 1011. (a) The Congress finds that, with the ever-increasing 
concentration of the Nation's population in urban centers, there has 
occurred a marked change in the environmental conditions under 
which most people live and work; that such change is characterized 
by the progressive substitution of a highly complex, man-contrived 
environment for an environment conditioned primarily by nature; 
that the beneficent or malignant influence of environment on all living 
creatures is well recognized; and that much more knowledge is urgently 
needed concerning the effect on human beings of highly urbanized 
surroundings. It is the purpose of this section to authorize a compre-
hensive program of research, studies, surveys, and analyses to improve 
understanding of the environmental conditions necessary for the well-
being of an urban society, and for the intelligent planning and devel-
opment of viable urban centers. 
(b) In order to carry out the purpose of this section, the Secretary 
is authorized and directed to— 
(1) conduct studies, surveys, research, and analyses with respect 
to the ecological factors involved in urban living; 
(2) document and define urban environmental factors which 
need to be controlled or eliminated for the well-being of urban 
life; 
(3) establish a system of collecting and receiving informa-
tion and data on urban ecological research and evaluations which 
are in process or are being planned by public or private agencies, 
or individuals; 
(4) evaluate and disseminate information pertaining to urban 
ecology to public and private agencies or organizations, or indi-
viduals, in the form of reports or otherwise; 
(5) initiate and utilize urban ecological information in urban 
development projects initiated or assisted by the Department of 
Housing and Urban Development; and 
(6) establish through interagency consultation the coordi-
nated utilization of urban ecological information in projects 
undertaken or assisted by the Federal Government which affect 
the growth or development of urban areas. 
(c) (1) The Secretary is authorized to establish such advisory com- ^iffjj's°'^^ ''°"" 
mittees as he deems desirable for the purpose of rendering advice and 
submitting recommendations for carrying out the purpose of this sec-
tion. Such advisory committees shall render such advice to the Sec-
retary upon his request and may submit such recommendations to the 
Secretary at any time on their own initiative. 
The Secretary may 
designate employees of the Department of Housing and Urban Devel-
opment to assist such committees. 
(2) Members of such advisory committees shall receive not to exceed 
$100 per day when engaged in the actual performance of their duties, 
in addition to reimbursement for travel, subsistence, and other neces-
sary expenses incurred by them in the performance of their duties. 
(d) The Secretary is authorized to carry out the studies, surveys, 
research, and analyses authorized by this section either directly or by 
contract with public or private bodies or agencies, or by working 
agreement with departments and agencies of the Federal Government, 
as he may determine to be desirable. Contracts may be made by the 
Secretary for work under this subsection to continiie not more than 
two years from the date of any such contract. 
1288 
PUBLIC LAW 89-754-NOV. 3, 1966 
[sO STAT. 
(e) There are authorized to be appropriated such sums as may be 
necessary to carry out the provisions of this section. All funds so 
appropriated shall remain available until expended when so provided 
in appropriation Acts. 
MORTGAGE RELIEF FOR CERTAIN HOMEOWNERS 
79 Stat. 458. 
12 u s e 1735g. 
SEC. 1012. That part of section 107 of the Housing and Urban 
Development Act of 1965 which precedes subsection (f) is amended 
to read as follows: 
" M O R T G A G E R E L I E F FOR C E R T A I N HOMEOWNERS 
"SEC. 107. (a) For the purposes of this section— 
"(1) The term 'mortgage' means a mortgage which (A) is 
12 use 1701. 
insured under the National Housing Act, or (B) secures a home 
loan guaranteed or insured under the Servicemen's Readjustment 
72l^l\%\\^'' 
Act of 1944 or chapter 37 of title 38, United States Code. 
72 Stat. 1203. 
" (2) The term 'Federal mortgage agency' means— 
38 use 1801. 
"(A) the Secretary of Housing and Urban Development 
when used in connection with mortgages insured under the 
National Housing Act, and 
"(B) the Administrator of Veterans' Affairs when used in 
connection with mortgages securing home loans guaranteed 
or insured under the Servicemen's Readjustment Act of 1944 
or chapter 37 of title 38, United States Code. 
"(3) The term 'distressed mortgagor' means an individual 
who— 
"(A) was employed by the Federal Government at, or was 
assigned as a serviceman to, a military base or other Federal 
installation and whose employment or service at such base 
or installation was terminated subsequent to November 1, 
1964, as the result of the closing (in whole or in part) of such 
base or installation; and 
"(B) is the owner-occupant of a dwelling situated at or 
near such base or installation and upon which there is a 
mortgage securing a loan which is in default because of the 
inability of such individual to make payments due under such 
mortgage. 
"(b)(1) Any distressed mortgagor, for the purpose of avoiding 
foreclosure of his mortgage, may apply to the appropriate Federal 
mortgage agency for a determination that suspension of his obliga-
tion to make payments due under such mortgage during a temporary 
period is necessary in order to avoid such foreclosure. 
"(2) Upon receipt of an application made under this subsection by 
a distressed mortgagor, the Federal mortgage agency shall issue to 
such mortgagor a certificate of moratorium if it determines, after 
consultation with the interested mortgagee, that such action is neces-
sary to avoid foreclosure. 
"(3) Prior to the issuance to any distressed mortgagor of a certifi-
cate of moratorium under paragraph (2), the Federal mortgage 
agency, the mortgagor, and the mortgagee shall enter into a binding 
agreement under which— 
" ( A ) the mortgagor will be required to make payments to such 
agency, after the expiration of such certificate, in an aggregate 
amount equal to the amount paid by such agency on behalf of such 
mortgagor as proAaded in subsection (c), together with interest 
thereon at a rate not to exceed the rate provided in the mortgage; 
the manner and time in which such payments shall be made to be 
80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1289 
detenuiiied by the Federal inortg'a<j:e ajreiicy Jui\hig due regard 
for the ])urposes sought to be achieved by this section; aud 
*'(B) tlie Federal luortgage ageucy will be subrogated to the 
rights of the mortgagee to the exteut of i)ayments made pursuant 
to such certificate, which rights, however, shall be subject to the 
prior right of the mortgagee to receive the full amount payable 
under the mortgage. 
"(4) Any certificate of moratorium issued under this subsection 
shall expire on whichever of the following dates is the earliest— 
"(A) two years from the date on which such certificate was 
issued; 
"(B) thirty days after the date on which the mortgagor gives 
notice in writing to the Federal mortgage agency that he is able 
to resume his obligation to make payments due under his mort-
gage; or 
"(C) thirty days after the date on which the Federal mortgage 
agency determines that the mortgagor to whom such certificate 
was issued has ceased to be a distressed mortgagor as defined in 
subsection (a) (3). 
"(c) (1) Whenever a Federal mortgage agency issues a certificate of 
moratorium to any distressed mortgagor with respect to any mortgage, 
it shall transmit to the mortgagee a copy of such certificate, together 
with a notice stating that, while such certificate is in effect, such agency 
will assume the obligation of such mortgagor to make payments due 
imder the mortgage. 
"(2) Payments made by any Federal mortgage agency pursuant to 
a certificate of moratorium issued under this section with respect to 
the mortgage of any distressed mortgagor may include, in addition 
to the payments referred to in paragraph (1), an amount equal to the 
unpaid payments under such mortgage prior to the issuance of such 
certificate, plus a reasonable allowance for foreclosure costs actually 
paid by the mortgagee if a foreclosure action was dismissed as a result 
of the issuance of a moratorium certificate. 
Payments by the Federal 
mortgage agency may also include payments of taxes and insurance 
premiums on the mortgaged property as deemed necessary when these 
items are not provided for through payments to a tax and insurance 
account held by the interested mortgagee. 
"(3) While any certificate of moratorium issued under this section 
is in effect with respect to the mortgage of any distressed mortgagor, 
no further payments due under the mortgage shall be required of such 
mortgagor, and no action (legal or otherwise) shall be taken or main-
lained by the mortgagee to enforce or collect such payments. Upon 
the expiration of such certificate, the mortgagor shall again be liable 
for the payment of all amounts due under the mortgage in accordance 
with its terms. 
"(4) Each Federal mortgage agency shall give prompt notice in 
writing to the interested mortgagor and mortgagee of the expiration 
of any certificate of moratorium issued by it under this section. 
"(d) The Federal mortgage agencies are authorized to issue such 
individual and joint regulations as may be necessary to carry out this 
section and to insure the uniform administration thereof. 
" (e) There shall be in the Treasury (1) a fund which shall be avail-
able to the Secretary of Housing and Urban Development for the pur-
pose of extending financial assistance in behalf of distressed mort-
gagors as provided in subsection (c) and for paying administrative 
expenses incurred in connection with such assistance, and (2) a fund 
which shall be available to the Administrator of Veterans' Affairs for 
the same purpose, except administrative expenses. The capital of each 
moneys 
1290 
PUBLIC LAW 89-754-NOV. 3, 1966 
[80 STAT. 
such fund shall consist of such sums as may, from time to tmie, be 
appropriated thereto, and any sums so appropriated shall remain 
available until expended. 
Receipts arising from the programs of 
assistance under subsection (c) shall be credited to the fund from 
Investment o
f 
which such assistauce was extended. Moneys in either of such funds 
not needed for current operations, as determined by the Secretary of 
Housing and Urban Development, or the Administrator of Veterans' 
Affairs, as the case may be, shall be invested in bonds or other obliga-
tions of the United States, or paid into the Treasury as miscellaneous 
receipts." 
ACQUISITION 
OF CERTAIN PROPERTIES SITUATED AT OR NEAR 
MILITARY 
BASES W H I C H HAVE BEEN ORDERED TO BE CLOSED 
SEC. 1013. (a) Notwithstanding any other provision of law, the 
Secretary of Defense is authorized to acquire title to, hold, manage, 
and dispose of, or, in lieu thereof, to reimburse for certain losses upon 
private sale of, or foreclosure against, any property improved with a 
one- or two-family dwelling which is situated at or near a military 
base or installation which the Department of Defense has, subsequent 
to November 1, 1964, ordered to be closed in whole or in part, if he 
determines— 
(1) that the owner of such property is, or has been, a Federal 
employee employed at or in connection with such base or installa-
tion (other than a temporary employee serving under a time 
limitation) or a serviceman assigned thereto; 
(2) that the closing of such base or installation, in whole or 
in part, has required or will require the termination of such own-
er's employment or service at or in connection with such base or 
installation; and 
(3) that as the result of the actual or pending closing of such 
base or installation, in whole or in part, there is no present market 
for the sale of such property upon reasonable terms and condi-
tions. 
(b) In order to be eligible for the benefits of this section such 
employees or military personnel must be or have been— 
(1) assigned to or employed at or in connection with the instal-
lation or activity at the time of public announcement of the 
closure action, 
(2) transferred from such installation or activity, or terminated 
as employees as a result of reduction-in-force, within six months 
prior to public announcement of the closure action, or 
(3) transferred from the installation or activity on an overseas 
tour unaccompanied by dependents within fifteen months prior to 
public announcement of the closure action : 
Provided^ That,, at the time of public announcement of the closure 
action, or at the time of transfer or termination as set forth above, 
such personnel or employees must— 
(i) have been the owner-occupant of the dwelling, or 
(ii) have vacated the owned dwelling as a result of being 
ordered into on-post housing during a six-month period prior to 
the closure announcement: 
Provided further. That as a consequence of such closure such employ-
ees or personnel must— 
(i) be required to relocate because of military transfer or 
acceptance of employment beyond a normal commuting distance 
from the dwelling for which compensation is sought, or 
(ii) be unemployed, not as a matter of personal choice, and 
able to demonstrate such financial hardship that they are unable 
to meet their mortgage payments and related expenses. 
80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1291 
(c) Such persons as the Secretary of Defense may determine to 
be eligible under the criteria set forth above shall elect either (1) 
to receive a cash payment as compensation for losses which may be 
or have been sustained in a private sale, in an amount not to exceed 
the difference between (A) 95 per centum of the fair market value 
of their property (as such value is determined by the Secretary of 
Defense) prior to public announcement of intention to close all or 
part of the military base or installation and (B) the fair market 
value of such property (as such value is so determined) at the time 
of the sale, or (2) to receive, as purchase price for their property, an 
amount not to exceed 90 per centum of prior fair market value as 
such value is determined by the Secretary of Defense, or the amount 
of the outstanding mortgages. 
Cash payment as compensation for 
losses sustained in a private sale shall not be made in any case in 
which the property is encumbered by a mortgage loan guaranteed, 
insured, or held by a Federal agency unless such mortgage loan is 
paid, assumed by a purchaser satisfactory to such Federal agency, 
or otherwise fully satisfied at or prior to the time such cash payment 
is made. Except in cases of payment as compensation for losses, in 
the event of foreclosure by mortgagees commenced on or after public 
announcement of intention to close all or part of the military base 
or installation and prior to the one hundred and twentieth day after 
the enactment of this Act, the Secretary of Defense may reimburse 
or pay on account of eligible persons such sums as may be paid or be 
otherwise due and owing by such persons as the result of such fore-
closure, including (without limiting the generality of the foregoing) 
direct costs of judicial foreclosure, expenses and liabilities enforce-
able according to the terms of their mortgages or promissory notes, 
and the amount of debts, if any, established against such persons by 
a Federal agency in the case of loans made, guaranteed,, or insured 
by such agency following liquidation of the security for such loans. 
(d) There shall be in the Treasury a fund which shall be available 
to the Secretary of Defense for the purpose of extending the financial 
assistance provided above. The capital of such fund shall consist of 
such sums as may, from time to time, be appropriated thereto, and 
shall consist also of receipts from the management, rental, or sale of 
properties acquired under this section, which receipts shall be credited 
to the fund and shall be available, together with funds appropriated 
therefor, for purchase or reimbursement purposes as provided above, 
as well as to defray expenses arising in connection with the acquisition, 
management, and disposal of such properties, including payment of 
principal, interest, and expenses of mortgages or other indebtedness 
thereon, and including the cost of staff services and contract services, 
costs of insurance, and other indemnity. Any part of such receipts 
not required for such expenses shall be covered into the Treasury as 
miscellaneous receipts. Properties acquired under this section shall 
be conveyed to, and acquired in the name of, the United States. The 
Secretary of Defense shall have the power to deal with, rent, renovate, 
and dispose of, whether by sales for cash or credit or otherwise, any 
properties so acquired: Provided^ hotoever^ That no contract for acqui-
sition, or acquisition, shall be deemed to constitute a contract for 
or acquisition of family housing units in support of military installa-
tions or activities within the meaning of section 406(a) of the Act of 
August 30,1957 (42 U.S.C. 15941), nor shall it be deemed a transaction 
^^ stat. 321. 
within the contemplation of section 2662 of title 10, United States 
C o d e . 
74 Stat. 186. 
(e) Payments from the fund created by this section may be made 
in lieu of taxes to any State or political subdivision thereof, with 
respect to real property, including improvements thereon, acquired 
1292 
PUBLIC LAW 89-754-NOV. 3, 1966 
[80 STAT. 
79 Stat. 461. 
12 u s e 1715n. 
Repeal. 
79 Stat. 460. 
12 u s e 1735h. 
71 Stat. 304. 
12 u s e 1749c. 
73 Stat. 681. 
12 u s e 1749. 
and held under this section. The amount so paid for any year upon 
such property shall not exceed the taxes which would be paid to the 
State or subdivision, as the case may be, upon such property if it 
were not exempt from taxation, and shall reflect such allowance as 
may be considered appropriate for expenditures, if any, by the 
Government for streets, utilities, or other public services to serve such 
property. 
(f) The title to any property acquired under this section, the 
eligibility for, and the amounts of, cash payable, and the administra-
tion of the preceding provisions of this section, shall conform to such 
requirements, and shall be administered under such conditions and 
regulations, as the Secretary of Defense may prescribe. Such regu-
lations shall also prescribe the terms and conditions under which pay-
ments may be made and instruments accepted under this section, and 
all the determinations and decisions made pursuant to such regula-
tions by the Secretary of Defense regarding such payments and con-
veyances and the terms and conditions under which they are approved 
or disapproved, shall be final and conclusive and shall not be subject 
to judicial review. 
(g) The Secretary of Defense is authorized to enter into such 
agreement with the Secretary of Housing and Urban Development 
as may be appropriate for the purposes of economy and efficiency of 
administration of this section. Such agreement may provide author-
ity to the Secretary of Housing and Urban Development and his 
designee to make any or all of the determinations and take any or 
all of the actions which the Secretary of Defense is authorized to 
undertake pursuant to the preceding provisions of this section. Any 
such determinations shall be entitled to finality to the same extent as 
if made by the Secretary of Defense, and, in event the Secretaries of 
Defense and Housing and Urban Development so elect, the fund 
established pursuant to subsection (d) of this section shall be avail-
able to the Secretary of Housing and Urban Development to carry out 
the purposes thereof. 
(h) Section 223(a)(8) of the National Housing Act is amended 
to read as follows: 
"(8) executed in connection with the sale by the Government 
of any housing acquired pursuant to section 1013 of the Demon-
stration Cities and Metropolitan Development Act of 1966." 
(i) No funds may be appropriated for the acquisition of any prop-
erty under authority of this section unless such funds have been 
specifically authorized for such purpose in a military construction 
authorization act, and no moneys in the fund created pursuant to 
subsection (d) of this section may be expended for any purpose 
except as may be provided in appropriation Acts. 
(j) Section 108 of the Housing and Urban Development Act of 
1965 is repealed. 
COLLEGE HOUSING 
SEC. 1014. (a) Section 404(b)(4) of the Housing Act of 1950 is 
amended by striking out "public" immediately before "educational 
institution . 
(b) Section 401(d) of such Act is amended by inserting before the 
period at the end thereof the following: "and, notwithstanding the 
first proviso of this subsection, the amount of this annual increase 
which is not utilized for loans for hospitals may be utilized for loans 
for other educational facilities, as defined herein". 
80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1293 
STUDY CONCERNING RELIEF OF HOMEOWNERS I N PROXIMITY TO AIRPORTS 
SEC. 1015. Section 1113 of the Housing and Urban Development Act 
of 1965 is amended— 
^9 stat. 509. 
(1) by inserting "(a) "after "SEC. 1113."; 
note. 
(2) by striking out "one year after the date of the enactment 
of this Act" and inserting in lieu thereof "six months after the 
date of the enactment of the Demonstration Cities and Metro-
politan Development Act of 1966"; and 
(3) by adding at the end thereof the following new subsection: 
"(b) There is authorized to be appropriated the sum of $100,000 
to carry out subsection (a)." 
QUARTERS AND FACILITIES FOR FEDERAL HOME LOAN BANKS AND 
T H E FEDERAL HOME LOAN BANK BOARD 
SEC. 1016. (a) The second sentence of section 12 of the Federal 
Home Loan Bank Act (12 U.S.C. 1432) is amended by striking out "but 
no bank building shall be bought or erected to house any such bank, 
nor shall any such bank make any lease" and inserting in lieu thereof 
"but, except with the prior approval of the board, no bank building 
shall be bought or erected to house any such bank, or leased by such 
bank under any lease". 
(b) Section 18 of such Act (12 U.S.C. 1438) is amended— 
(1) by adding at the end of subsection (b) the following new 
sentence: "Such assessments may include such amounts as the 
board may deem advisable for carrying out the provisions of sub-
section (c) of this section."; and 
(2) by adding at the end thereof the following new subsection: 
"(c) (1) The board, utilizing the services of the Administrator of 
General Services (hereinafter referred to as the 'Administrator'), and 
subject to any limitation hereon which may hereafter be imposed in 
appropriation Acts, is hereby authorized— 
" (A) to acquire, in the name of the United States, real property 
in the District of Columbia, for the purposes set forth in this sub-
section ; 
"(B) to construct, develop, furnish, and equip such buildings 
thereon and such facilities as in its judgment may be appropriate 
to provide, to such extent as the board may deem advisable, suit-
able and adequate quarters and facilities for the board and the 
agencies under its administration or supervision; 
"(C) to enlarge, remodel, or reconstruct any of the same; and 
"(D) to make or enter into contracts for any of the foregoing. 
"(2) The board may require of the respective banks, and they shall 
make to the board, such advances of funds for the purposes set out in 
paragraph (1) as in the sole judgment of the board may from time to 
time be advisable. 
Such advances shall be in addition to the assess-
ments authorized in subsection (b) and shall be apportioned by the 
board among the banks in proportion to the total assets of the respec-
tive banks, determined in such manner and as of such times as the 
board may prescribe. 
Each such advance shall bear interest at the 
rate of 4^^ per centum per annum from the date of the advance and 
shall be repaid by the board in such installments and over such period, 
not longer than twenty-five years from the making of the advance, 
as the board may determine. 
Payments of interest and principal upon 
such advances shall be made from receipts of the board or from other 
sources which may from time to time be available to the board. 
The 
obligation of the board to make any such payment shall not be 
47 Stat. 735. 
65-300 0-67—84 
1294 
PUBLIC LAW 89-754-NOV. 3, 1966 
[80 STAT. 
regarded as an obligation of the Tnited States. 
To such extent us 
the board may prescribe any such obligation shall be regarded as a 
legal in\estnient for the purposes of subsections (g) and (h) of section 
11 and for the purposes of section 16. 
"(3) The plans and designs for snch buildings and facilities and for 
any such enlargement, remodeling, or reconstruction shall, to such 
extent as the chairman of the board may request, be subject to his 
approval. 
"(4) L'pon the making of arrangements mutually agreeable to the 
board and the Administrator, which arrangements may be modified 
from time to time by mutual agreement between them and may include 
but shall not be limited to the making of payments by the board and 
such agencies to the Administrator and by the Administrator to the 
board, the custody, management, and control of such buildings and 
facilities and of such real property shall be vested in the Adminis-
trator in accordance therewith. 
Until the making of such arrange-
ments such custody, management, and control, includiiig the assign-
ment and allotment and the reassignment and reallotment of building 
and other space, shall be vested in the board. 
"(5) Any prcK'eeds (including advances) received by the board in 
connection with this subsection, and any proceeds from the sale or 
other disposition of real or other property acquired by the board under 
this subsection, shall be considered as receipts of the board, and obliga-
tions and expenditui'es of the board and such agencies in connection 
with this subsection shall not be considered as administrative expenses. 
As used in this subsection, the term 'property" shall include interests 
in property. 
Budget program 
"(6) With respect to its functions under this subsection the board 
shall (A) annually prepai'e and submit a budget program as provided 
in title I of the Government Corporation Control Act with i-egard to 
wholly owned Government corporations, and for purposes of this sen-
tence, the terms 'wholly owned (xovernment corporations' and 'Govern-
ment corporations', wherever used in such title, shall include the board, 
and (B) maintain an integral set of accounts w^hich shall be audited 
annually by the General Accounting Office in accordance with the 
principles and procedures applicable to commercial corporate trans-
actions as provided in such title, and no other audit, settlement, or 
adjustment shall be required with respect to transactions under this 
subsection or with respect to claims, demands, or accounts by or 
against any person arising thereunder. The first budget program shall 
be for the first full fiscal year beginning on or after the date of the en-
actment of this subsection, and the first audit shall be for the remainder 
of the fiscal year in which this subsection is enacted. Except as other-
wise provided in this subsection or by the board, the provisions of this 
subsection and the functions thereby or thereunder subsisting shall 
be applicable and exercisable notwithstanding and without regard to 
52 Stat. 797. 
^he Act of Juuc 20, 1938 (D.C. Code, sees. 5^13—5-428), except that 
the proviso of section 16 thereof shall apply to any building con-
structed under this subsection, and section 306 of the Act of July 30, 
1947 (61 Stat. 584), or any other provision of law relating to the con-
struction, alteration, repair, or furnishing of public or other buildings 
or structures or the obtaining of sites therefor, but any person or body 
in whom any such function is vested may provide for delegation or 
redelegation of the exercise of such function. 
"(7) No obligation shall be incurred and no expenditure, except in 
liquidation of obligation, shall be made pursuant to the first two sub-
paragraphs of paragraph (1) of this subsection if the total amount of 
all obligations incurred pursuant thereto would thereupon exceed 
preparation. 
59 Stat. 597. 
31 use 841-852 
GAG audit. 
40 use 129. 
80 STAT. ] 
PUBLIC LAW 89-754-NOV. 3, 1966 
1295 
$13,200,000, or such greater amount as may be provided in an appro-
priation Act or other law." 
72 Stat. 389. 
15 u s e 637. 
SMALL BUSINESS ACT 
SEC. 1017. Paragraph (1) of section 8(b) of the Small Business Act 
is amended by inserting " ( A ) " after "(1)", by inserting "and" after 
"Administration;", and by adding at the end thereof a new subpara-
graph as follows: 
"(B) to allow an individual or group of persons cooperating 
with it in furtherance of the purposes of subparagraph (A) to 
make such use of its office facilities and related materials and 
services as it deems appropriate;". 
USE OF CERTAIN LANDS FOR CIVIL DEFENSE PURPOSES 
SEC. 1018. Section 2 of the Act entitled "An Act to provide for the 
conveyance of a tract of land in Prince Georges County, Maryland, to 
the State of Maryland for use as a site for a National Guard Armory 
and for training the National Guard or for other military purposes", 
approved August 10, 1949 (68 Stat. 592), is amended by striking out 
"The land" and inserting in lieu thereof "(a) Except as provided in 
subsection (b) of this section, the land" and by adding at the end 
thereof the following new subsection: 
"(b) The Secretary of Housing and Urban Development shall 
execute the necessary instrument or instruments to provide that a 
certain portion of land, not to exceed two acres, on the easterly side' 
of the land described in the first section of this Act, as more particu-
larly determined and designated by the Secretary of the Army, may 
be used for civil defense or other emergency preparedness purposes 
or the purposes stated in subsection (a) and that such use shall not 
cause the reverter clause set forth herein to become operable." 
MORTGAGE INSURANCE FOR LAND DEVELOPMENT 
CLARIFYING 
AMENDMENTS 
SEC. 1019. Section 1001(d) of the National Housing Act is 
[2 J'sc" n49aa. 
amended— 
(1) by striking out "sewerage disposal installations," and 
inserting in lieu thereof "sewage disposal installations, steam, 
gas, and electric lines and installations,"; 
(2) by striking out the semicolon after "or common use", and 
inserting in lieu thereof a period and the following new sentence: 
"Related uses may include industrial uses, with sites for such 
uses to be in proper proportion to the size and scope of the 
development."; 
(3) by striking out "but such term" and inserting in lieu there-
of : "The term improvements"; and 
(4) by inserting after "sewage disposal installation," in clause 
(1) the following: "or a steam, gas, or electric line or installa-
tion,". 
MISCELLANEOUS AND TECHNICAL AMENDMENTS 
SEC. 1020. (a) Section 106(d) of the Housing Act of 1949 is 
IH'^''^^^^ 
repealed. 
^^^ ^'*^^' 
(b) Section 227(a) of the National Housing Act is amended by 
^us^c i ^ r 
striking out "subsection (b) (2)" in clause (vi) and inserting in lieu 
thereof "subsection (b)". 
71 
12 
68 
12 
12 
12 
12 
69 
12 
note, 
Stat. 
use 
Stat. 
use 
use 
use 
use 
Stat. 
use 
2 9 9 . 
1 7 2 0 . 
6 2 0 . 
1 7 2 3 . 
1731a. 
1749aa, 
1 7 0 2 . 
6 3 6 . 
1715e 
12 u s e 
1715e, 
1715Z, 1 7 0 1 s . 
1296 
PUBLIC LAW 89-755-NOV. 3, 1966 
[80 STAT. 
(c) The last sentence of section 305(e) of the National Housing 
Act is amended by striking out "supplementing" and inserting in lieu 
thereof "supplementary", 
(d) Section 308 of the National Housing Act is amended by strik-
ing out "(a]". 
(e) Section 512 of the National Housing Act is amended by strik-
ing out "or I X " and inserting in lieu thereof "IX, X, or XI". 
(f) Section 1001(c) of the National Housing Act is amended by 
striking out " 'mortgage' " and inserting in lieu thereof " 'mort-
gagee' ". 
(g) Section 1 of the National Housing Act is amended by striking 
out "and X " wherever it appears and inserting in lieu thereof "X, 
and XI". 
(h) Section 102(h) of the Housing Amendments of 1955 is amended 
by striking out "section 213 of the National Housing Act, as amended, 
the Commissioner" and inserting in lieu thereof "section 213 of the 
National Housing Act, section 221(d)(3) of the National Housing 
Act, and section 101 of the Housing and Urban Development Act of 
1965 (insofar as the provisions of such sections relate to cooperative 
housing), the Secretary of Housing and Urban Development", and by 
striking out "such section" each place it appears and inserting in lieu 
thereof "such sections". 
Approved November 3, 1966. 
Public Law 89-755 
November 3, 1966 
A N A C T 
rs 9851 
LJ 
^ 
To regulate interstate and foreign commerce by preventing the use of unfair or 
deceptive methods of pacltaging or labeling of certain consumer commodities 
distributed in such commerce, and for other purposes. 
Be it enacted by the Senate and House of Representatives 
of the 
<.„H^''^ K ^K^^^A"! 
United States of America in Congress assembled. That this Act may 
and Labeling Act. 
, 
•, 
-, 
,i 
,/-ry • -rw 
i 
• 
T T 
i 
T 
» 
n
^ 
be cited as the ^ h air Packaging and liabelmg Act". 
DECLARATION OF POLICY 
SEC. 2. Informed consumers are essential to the fair and efficient 
functioning of a free market economy. 
Packages and their labels 
should enable consumers to obtain accurate information as to the 
quantity of the contents and should facilitate value comparisons. 
Therefore, it is hereby declared to be the policy of the Congress to assist 
consumers and manufacturers in reaching these goals in the marketing 
of consumer goods. 
PROHIBITION OF UNFAIR AND DECEPTIVE PACKAGING AND I>ABELING 
SEC. 3. (a) It shall be unlawful for any person engaged in the 
packaging or labeling of any consumer commodity (as defined in this 
Act) for distribution in commerce, or for any person (other than a 
common carrier for hire, a contract carrier for hire, or a freight 
forwarder for hire) engaged in the distribution in commerce of any 
packaged or labeled consumer commodity, to distribute or to cause to 
l)e distributed in commerce any such commodity if such commodity is 
contained in a package, or if there is affixed to tnat commodity a label, 
which does not conform to the provisions of this Act and of regulations 
promulgated under the authority of this Act.