An Act to increase on an emergency basis the availability of reasonably priced mortgage credit for housing.
PL 93-449 (S.3979), enacted 10/18/1974

1364 
PUBLIC LAW 93-449-OCT. 18, 1974 
[88 STAT. 
22 u s e 2151 
note. 
22 u s e 2751 
note. 
Suspension. 
Effective 
period. 
to Turkey until and unless the President certifies to the Congress that 
the Government of Turkey is in compliance with the Foreign Assist-
ance Act of 1961, the Foreign Military Sales Act, and any agreement 
entered into under such Acts, and that substantial progress toward 
agreement has been made regarding military forces m Cyprus: Pro-
'vided^ That the President is authorized to suspend the provisions of 
this section and said Acts if he determines that such suspension will 
further negotiations for a peaceful solution of the Cyprus conflict. 
Any such suspension shall be effective only until December 10, 1974 
and onl^ if, during that time, Turkey shall observe the ceasefire and 
shall neither increase its forces on Cyprus nor transfer to Cyprus 
any U.S. supplied implements of war. 
Approved October 17, 1974. 
Public Law 93-449 
October 18, 1974 
^ ^ 
A C T 
[s. 3979] 
To increase on an emergency basis the availability of reasonably priced mortgage 
credit for housing. 
Be it enacted hy the Senate and House of Representatives 
of the 
rgency Home United States o f America in Congress assembled. 
ase Assist- 
' 
i/ 
/ 
Erne 
Purcha 
ance Act of 1974. 
12 u s e 1723e 
note. 
12 u s e 1723e 
note. 
SHORT 
TITLE 
SECTION 1. This Act may be cited as the "Emergency Home Purchase 
Assistance Act of 1974". 
FINDINGS 
SEC. 2. The Congress finds and declares that— 
(1) in many parts of the Nation, residential mortgage credit is 
or is likely soon to become prohibitively expensive or unavailable 
at any price; 
(2) the unavailability of mortgage credit severely restricts 
housing production, causes hardship for those who wish to pur-
chase or sell new and existing housing, and delays the achieve-
ment of the national goal of a decent home for every American 
family; and 
^3) there is an urgent need to provide an alternate source of 
residential mortgage credit on an emergency basis. 
INTERIM 
AUTHORITY 
SEC. 3. (a) Title I I I of the National Housing Act is amended by 
adding at the end thereof the following new section: 
(( 
12 u s e 1723e. 
42 u s e 1441a. 
Termination. 
INTERIM AUTHORITY TO PURCHASE CERTAIN 
MORTGAGES 
"SEC. 313. (a) (1) Whenever the Secretary finds inflationary condi-
tions and related governmental actions are having a severely dispro-
portionate effect on the housing industry and the resulting reduction 
in the volume of home construction or acquisition threatens seriously 
to affect the economy and to delay the orderly achievement of the 
national housing goals contained in title XVI of the Housing and 
Urban Development Act of 1968, the Secretary shall direct the Asso-
ciation to begin making commitments to purchase and to purchase 
mortgages in accordance with the provisions of this section. 
" (2) The Secretary may direct the Association to terminate its activ-
ities under this section whenever he determines that the conditions 
88 STAT. ] 
PUBLIC LAW 93-449-OCT. 18, 1974 
1365 
which gave rise to his determination under paragraph (1) are no 
longer present. 
"(b) Whenever the Secretary issues a directive under subsection (a) 
(1), the Association shall make commitments to purchase and pur-
chase, and may service, sell (with or without recourse), or otherwise 
deal in, mortgages (1) which cover more than four-family residences 
(including cooperatives and condominiums and the individual units 
therein) and which are insured under the National Housing Act and 
1
2 use 1701 
chapter 37 of title 38 of the United States Code, or (2) which cover one- ^"as^usc 1 soi. 
to four-family residences and which are insured under the National 
Housing Act or guaranteed under chapter 37 of title 38 of the United 
States Code or by qualified private insurers as determined by the Asso-
ciation or the outstanding principal balances of which do not exceed 80 
per centum of the value of the property securing the mortgages. A 
mortgage may be purchased under this section only if— 
" (A) such mortgage was executed to finance the acquisition of a 
one- to four-family residence which will be the principal residence 
of the mortgagor or to finance the purchase of a more than four-
family residence and is subject to a mortgage insured under the 
National Housing Act; 
1
2 u sc 1
7 01 
"(B) such mortgage involves an original principal obligation ^"^o"°'a"g ri -
not to exceed $42,000 per family residence or dwelling unit, and cipai obUgation' 
except that the original principal obligation may not exceed limitation. 
$55,000 in the case of properties in Alaska, Hawaii, and Guam; 
"(C) such mortgage involves an interest rate or yield not in 
interest rate. 
excess of that which the Secretary may prescribe, taking into 
account the cost of funds and administrative costs under this sec-
tion, the importance of making mortgage credit available on rea-
sonable terms, and current conditions in the mortgage market, 
but in no event shall such rate exceed a rate equal to the average 
yield during the month preceding the month in which a com-
mitment to purchase such mortgage was issued on all marketable 
bonds of the United States maturing in more than six but less than 
twelve years from the date of such commitment (exclusive of 
bonds with a coupon rate of less than 6 per centum) plus one-half 
of 1 per centum, adjusted upward to the nearest one-eighth of 1 
per centum and taking into account the need to assure that the 
funds are available in all States pursuant to any maximum mort-
gage interest rate permitted under the laws or constitutions of the 
various States and, notwithstanding any State law or constitu-
tion to the contrary, discount points and other charges collected 
in connection with mortgage transactions under this section and 
reco^ized by the Association shall not be considered in deter-
mining whether the interest rate on any such mortgage exceeds 
any State usury ceiling. 
"(c) The Association may issue to the Secretary of the Treasury 
its obligations in an amount outstanding at any one time sufficient 
to enable the Association to carry out its functions under this section. 
Each such obligation shall mature at such time and be redeemable at 
the option of the Association in such manner as may be determined by 
the Association, and shall bear interest at a rate determined by the Sec- 
interest rate. 
retary of the Treasury, taking into consideration the current average 
yield on outstanding marketable obligations of the United States of 
comparable maturities during the month preceding the issuance of 
the obligation of the Association. The Secretary of the Treasury is 
authorized and directed to purchase any obligations of the Association 
issued under this section, and for such purposes the Secretary of the 
Treasury is authorized to use as a public debt transaction the proceeds 
from the sale of any securities issued under the Second Liberty Bond 
Act, as now or hereafter in force, and the purposes for which securities 
31 use 774. 
may be issued under the Second Liberty Bond Act, as now or hereafter 
1366 
PUBLIC LAW 93-449-OCT. 18, 1974 
[88 STAT. 
12 use 1721. 
Limitation. 
Effective date. 
12 use 1723e 
note. 
in force, are extended to include any purchase of the Association's 
obligations hereunder. 
"(d) (1) The Association is authorized to guarantee securities based 
on pools or trusts of the mortgages purchased by the Association under 
this section as provided in section 306(g) of this Act with respect to 
federally insured or guaranteed mortgages and to act as issuer of such 
guaranteed securities. The Association shall possess with respect to 
securities under this section all the powers it possesses with respect to 
securities guaranteed under such section 306 (g), and the provisions of 
such section shall apply to guarantees under this section, except that 
such section shall not be deemed to prohibit the Secretary from 
guaranteeing payment of only a part of the principal and interest on 
securities issued under the provisions of this section. 
"(2) The Association may offer and sell any securities guaranteed 
under this subsection to the Federal Financing Bank, and such Bank 
is authorized to purchase any securities so offered. The Association 
may also offer and sell any securities guaranteed under this subsection 
to any Federal Reserve bank. The proceeds from the sale of such 
securities when issued by the Association shall be treated in the 
accounts in the same manner as if such proceeds were from the sale of 
the underlying mortgages. 
"(e) The Secretary may make available a portion of his authority 
under this section to purchase mortgages covering housing which has 
been constructed more than twelve months prior to enactment of this 
section in areas where he determines that there is a serious shortage 
of mortgage credit to purchase such housing. 
"(f) The Association is authorized to—• 
"(1) sell mortgages purchased under this section of prices 
which it determines will help promote the objective of assuring 
that operations under this section are, to the extent feasible, fully 
self-supporting; 
"(2) pay for services performed in carrying out its functions 
under this section without regard to any limitation on adminis-
trative expenses heretofore enacted. 
"(g) The total amount of purchases and commitments authorized 
by the Secretary to be made pursuant to this section shall not exceed 
$7,750,000,000 outstanding at any one time.". 
(b) The amendment made by subsection (a) becomes effective upon 
the date of enactment of this Act and shall remain in effect for a 
period of one year following such date of enactment, except that it 
shall remain in effect after the expiration of such period to fhe extent 
necessary (1) to honor commitments to purchase mortgages issued 
f)rior to the expiration of such period, and (2) to provide for the 
liquidation of assets and discharge of liabilities acquired or incurred 
prior to the expiration of such period. 
12 use 1703. 
"Historic struc-
tures." 
'Preservation. 
AMENDMENTS TO OTHER LAWS 
SEC. 4. (a) The National Housing Act is amended as follows: 
(1) The first sentence of section 2(a) of such Act is amended by 
inserting before the period at the end thereof the following: "; and 
for the purpose of financing the preservation of historic structures, 
and. as used in this section, the term 'historic structures' means resi-
dential structures which are registered in the National Register of 
Historic Places or which are certified by the Secretary of the Interior 
to conform to National Register criteria; and the term 'preservation* 
means restoration or rehabilitation undertaken for such purposes as 
are approved by the Secretary in regulations issued by him, after con-
sulting with the Secretary of the Interior". 
12 use 1709. 
88 STAT. ] 
PUBLIC LAW 93-449-OCT. 18, 1974 
1367 
(2) Section 2(b) of such Act is amended by adding at the end 
thereof the following new paragraph: 
"A loan financing the preservation of a historic structure shall— 
"(1) involve an amount not exceeding $15,000 per family unit; 
and 
" (2) have a maturity not exceeding fifteen years and thirty-two 
days.". 
(b) Section 203 of the National Housing Act is amended by adding 
cooperative 
at the end thereof the following: 
_ 
m°o"tgale''iniu''r-^' 
" ( n ) ( l ) The Secretary is authorized to insure under this section ance. 
any mortgage meeting the requirements of subsection (b) of this 
section, except as modified by this subsection. To be eligible, the mort-
gage shall involve a dwelling unit in a cooperative housing project 
which is covered by a blanket mortgage insured under this Act. The 
mortgage amount as determined under the other provisions of sub-
section (b) of this section shall be reduced by an amount equal to 
the portion of the unpaid balance of the blanket mortgage covering 
the project which is attributable (as of the date the mortgage is 
accepted for insurance) to such unit. 
"(2) For the purpose of this subsection— 
Definitions. 
"(A) The terms 'home mortgage' and 'mortgage' include a 
first lien given (in accordance with the laws of the State where 
the property is located and accompanied by such security and 
other undertakings as may be required under regulations of the 
Secretary) to secure a loan made to finance the purchase of stock 
or membership in an nonprofit cooperative ownership housing 
corporation the permanent occupancy of the dwelling units of 
which is restricted to member's of such corporation, where the 
purchase of such stock or membership will entitle the purchaser 
to the permanent occupancy of one of such units. 
"(B) The terms 'appraised value of the property', 'value of 
the property', and 'value' include the appraised value of a dwell-
ing unit in a cooperative housing project of the type described in 
subparagraph (A) where the purchase of the stock or member-
ship involved will entitle the purchaser to the permanent occu-
pancy of that unit; and the term 'property' includes a dwelling 
unit in such a cooperative project. 
"(C) The term 'mortgagor' includes a person or persons giv-
ing a first lien (of the type describe in subparagraph (A)) to 
secure a loan to finance the purchase of stock or membership in a 
cooperative housing corporation." 
(c) Section 10(b) of the Federal Home Loan Bank Act (12 U.S.C. ^^^TasTJcuriT^ 
1430(b)), as amended, is amended by striking the dollar figure "^^ as secun y. 
"$40,000" and inserting in lieu thereof "$55,000 (except that with 
respect to dwellings in Alaska, Guam, and Hawaii the foregoing 
limitation may, by regulation of the Board, be increased by not to 
exceed 50 per centum)". 
(d) Section 5(c) of the Home Owners' Loan Act of 1933 (12 U.S.C. 
1464(c)), as amended, is amended by adding in the nineteenth para-
graph thereof after the phrase "section 401 (d)" the following phrase: 
"or section 408 (a)". 
(e) Section 5 of Public Law 93-387 is amended to read: "The Coun- 
^'^'^P-JJ'}: 
cil shall report to the President, and through him to the Congress, on a 
quarterly basis and not later than thirty days after the close of each 
calendar quarter, concerning its activities, findings, and recommenda-
tions with respect to the containment of inflation and the maintenance 
of a vigorous and prosperous peacetime economy.". 
12 use 1904 
note. 
1368 
PUBLIC LAW 93-450-OCT. 18, 1974 
[88 STAT. 
Time notes, ad-
vances. 
12 u s e 347b. 
Interest rate. 
FEDERAL RESERVE ACT AMENDMENT 
SEC. 5. Section 10(b) of the Federal Reserve Act is amended by add-
ing the following at the end thereof: 
"Notwithstanding the foregoing, any Federal Reserve bank, under 
rules and regulations prescribed by the Board of Governors of the Fed-
eral Reserve System, may make advances to any member bank on its 
time notes having such maturities as the Board may prescribe and 
which are secured by mortgage loans covering a one-to-four family 
residence. Such advances shall bear interest at a rate equal to the lowest 
discount rate in effect at such Federal Reserve bank on the date of such 
note.". 
Approved October 18^ 1974. 
Octob 
[S. 
An 
12 
note 
J. 
te, 
sr 18, 1974 
Res. 251] 
p. 1166. 
use 635f 
Public Law 93-450 
JOINT RESOLUTION 
To extend the authority of the Export-Import Bank of the United States. 
Resolved hy the Senate and House of Representatives 
of the United 
States of America 
in Congress assembled^ That section 8 of the 
Export-Import Bank Act of 1945 is amended by striking out "Octo-
ber 15, 1974" and inserting in lieu thereof "November 30, 1974": 
Provided^ however^ That the Bank shall not authorize any financial 
assistance to the Union of Soviet Socialist Republics during the life 
of this resolution. 
Approved October 18, 1974. 
October 18, 1974 
[S. 283] 
Public Law 93-451 
AN ACT 
To declare that the United States holds in trust for the Bridgeport Indian 
Colony certain lands in Mono County, California. 
Bridge 
Indian C 
Calif. 
Lands 
port 
olony, 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That all of the 
right, title, and interest of the United States in the following described 
public domain land located in Mono County, California, are hereby 
declared to be held by the United States in trust for the Bridgeport 
Indian Colony: 
The southeast quarter of the northeast quarter of section 28, 
township 5 north, range 25 east, Mount Diablo base and meridian, 
Mono County, California, containing forty acres more or less. 
Provided further^ That said parcel shall be subject to the easement to 
the Bridgeport Public Utility District for a sewer main. 
Approved October 18, 1974.