Supplemental Appropriations Act, 1984
PL 98-181 (H.R.3959), enacted 11/30/1983

PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1153 
Public Law 98-181 
98th Congress 
An Act 
Making supplemental appropriations for the fiscal year ending September 30, 1984, 
and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled. That the following 
sums are appropriated, out of any money in the Treasury not 
otherwise appropriated, to provide supplemental appropriations for 
the fiscal year ending September 30, 1984, and for other purposes, 
namely: 
TITLE I 
CHAPTER I 
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 
HOUSING FOR THE ELDERLY OR HANDICAPPED FUND 
Title I of the Department of Housing and Urban Development-
Independent Agencies Appropriation Act, 1984 (Public Law 98-45), 
is amended by inserting before the period at the end of the para-
graph under the heading "Housing for the elderly or handicapped 
fund" (97 Stat. 219, 220) the following: ": Provided further, That 
notwithstanding section 202(aX3) of the Housing Act of 1959, loans 
made in tiscal year 1984 shall bear an interest rate which does not 
exceed 9.25 per centum, including the allowance adequate in the 
judgment of the Secretary to cover administrative costs and prob-
able losses under the program". 
EXECUTIVE OFFICE OF THE PRESIDENT 
COUNCIL ON ENVIRONMENTAL QUALITY AND OFFICE OF 
ENVIRONMENTAL QUALITY 
For an additional amount for the "(Douncil on Environmental 
Quality and Office of Environmental Quality", $600,000 to conduct a 
study to consider and define a National Center for Water Resources 
Research, and a study to define and plan a National Clearinghouse 
for Water Resources Information. 
FEDERAL EMERGENCY MANAGEMENT AGENCY 
SALARIES AND EXPENSES 
The limitation on spending for official reception and representa-
tion allowance for fiscal year 1984 contained in the "Salaries and 
expenses" appropriation for the Federal Emergency Management 
Agency in the Department of Housing and Urban Development-
Nov. 30, 1983 
[H.R. 3959] 
Supplemental 
Appropriations 
Act, 1984. 
Ante, p. 219. 
12 u s e ITOlq 
note. 
12 u s e 1701q. 
1 1 - 1 9 4 O 
i5 — 38 : QL 3 
97 STAT. 1154 
PUBLIC LAW 98-181—NOV. 30, 1983 
Ante, p. 219. 
Independent Agencies Appropriation Act, 1984 (Public Law 98-45), 
is increased from $500 to $2,000. 
STATE AND LOCAL ASSISTANCE 
The Department of Housing and Urban Development-Independent 
Ante, p. 219. 
Agencies Appropriation Act, 1984, under the account, Federal Emer-
gency Management Agency, State and Local Assistance, is amended 
by adding the following before the period: ": Provided further, That 
notwithstanding any other provision of law for the fiscal year 1984, 
$55,000,000 is available for contributions to the States under section 
205 of the Federal Civil Defense Act of 1950, as amended (50 U.S.C. 
App. 2286), for personnel and administrative expenses". 
EMERGENCY FOOD DISTRIBUTION AND SHELTER PROGRAM 
For an emergency food distribution and shelter program to be 
carried out by the Director of the Federal Emergency Management 
Agency, $30,000,000, such sum to remain available for obligation 
until March 31, 1984, and to be made available under the following 
terms and conditions: 
(1) The Director of the Federal Emergency Management 
Agency shall, as soon as practicable after the date of the 
enactment of this Act, constitute a national board for the 
purpose of determining how the program funds are to be distrib-
uted to individual localities. The national board shall consist of 
seven members. The United Way of America, the Salvation 
Army, the National Council of Churches, the National Confer-
ence of Catholic Charities, the Council of Jewish Federations, 
Incorporated, the American Red Cross, and the Federal Emer-
gency Management Agency shall each designate a representa-
tive to sit on the national board. The representative of the 
Federal Emergency Management Agency shall serve as chair-
man of the national board. 
(2) Each locality designated by the national board to receive 
funds shall constitute a local board for the purpose of determin-
ing how its funds will be distributed. The local board shall 
consist, to the extent practicable, of representatives of the same 
organizations as the national board except that the mayor or 
appropriate head of government will replace the Federal Emer-
gency Management Agency member. 
(3) The Director of the Federal Emergency Managemen. 
Agency shall award a grant for $30,000,000 to the national 
board within thirty days after the date of the enactment of this 
Act for the purpose of providing emergency food and shelter to 
needy individuals through private voluntary organizations. 
(4) Eligible private voluntary organizations shall be nonprofit, 
have a voluntary board, have an accounting system, and prac-
tice nondiscrimination. 
(5) Participation in the program shall be based upon a private 
voluntary organization's ability to deliver emergency food and 
shelter to needy individuals and such other factors as are 
determined by the local boards. 
(6) Total administrative costs may not exceed 2 percent of the 
total appropriation. 
(7) As authorized by the Charter of the Commodity Credit 
Corporation, the Corporation shall process and distribute sur-
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1155 
plus food owned or to be purchased by the Corporation under 
the food distribution and emergency shelter program in cooper-
ation with the Federal Emergency Management Agency. 
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 
CONSTRUCTION OF FACIUTIES 
For an additional amount for "Construction of facilities", 
$20,000,000, to remain available until September 30,1986, for partial 
funding of the construction of facilities at the John F. Kennedy 
Space Center for the Solid Rocket Booster assembly and refurbish-
ment contractor and for warehousing to be used by the Shuttle 
processing contractor: Provided, That with the funds appropriated 
under the "Space flight, control and data communications" account 
in the 1984 Housing and Urban Development-Independent Agencies 
Appropriation Act (Public Law 98-45), NASA may enter into a 
contract with Morton Thiokol, Inc., to amortize the Thiokol Casting 
Pit Covers over a twelve-year period for a total cost of not to exceed 
$23,000,000 under the authority granted under Public Law 98-45. 
VETERANS ADMINISTRATION 
MEDICAL AND PROSTHETIC RESEARCH 
For an additional amount for "Medical and prosthetic research", 
$53,974,000, to remain available until September 30,1985. 
Ante, p. 219. 
VETERANS JOB TRAINING 
For an additional amount for payment of expenses as authorized 
by the Emergency Veterans' Job Training Act of 1983 (Public Law 
98-77), $75,000,000, to remain available until September 30, 1986. 
Ante, p. 443. 
SHORT TITLE AND TABLE OF CONTENTS 
SECTION 1. (a) Titles I through XI of this Act may be cited as the 
"Domestic Housing and International Recovery and Financial Sta-
bility Act". 
(b) Titles I through V of this Act may be cited as the "Housing and 
Urban-Rural Recovery Act of 1983". 
TABLE OF CONTENTS 
Sec. 1. Short title and table of contents. 
TITLE I—COMMUNITY AND NEIGHBORHOOD DEVELOPMENT AND 
CONSERVATION 
PART A—COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM 
Sec. 101. Low and moderate income benefit objective. 
Sec. 102. Definitions. 
Sec. 103. Authorization of appropriations. 
Sec. 104. Statement of activities and review. 
Sec. 105. Eligible activities. 
Sec. 106. Allocation and distribution of funds. 
Sec. 107. Discretionary fund. 
Sec. 108. Guarantee of loans. 
Sec. 109. Use of grants to settle outstanding urban renewal loanb. 
Sec. 110. Transition provisions. 
Domestic 
Housing and 
International 
Recovery and 
Financial 
Stability Act. 
12 u s e 1701 
note. 
Housing and 
Urban-Rural 
Recovery Act of 
1983. 
12 u s e 1701 
note. 
97 STAT. 1156 
PUBLIC LAW 98-181—NOV. 30, 1983 
PART B—OTHER PROGRAMS 
Sec. 121. Urban development action grants. 
Sec. 122. Urban homesteading. 
Sec. 123. Neighborhood development demonstration. 
Sec. 124. Rehabilitation loans. 
Sec. 125. Neighborhood Reinvestment Corporation. 
Sec. 126. Repealers. 
TITLE n—HOUSING ASSISTANCE PROGRAMS 
Sec. 201. Allocation and use of assisted housing authority. 
Sec. 202. Increase in single person occupancy limitation. 
Sec. 203. Priority for housing assistance. 
Sec. 204. Lease and grievance procedures. 
Sec. 205. Reporting requirements. 
Sec. 206. Amendments affecting tenant rents or contributions. 
Sec. 207. Voucher demonstration. 
Sec. 208. Renewal of section 8 contracts. 
Sec. 209. Repeal of new construction authority. 
Sec. 210. Single room occupancy housing. 
Sec. 211. Shared housing for the elderly and handicapped. 
Sec. 212. Pa3Tnents for operation of lower income housing projects. 
Sec. 213. Income eligibility. 
Sec. 214. Demolition and disposition of public housing. 
Sec. 215. Financing limitations. 
Sec. 216. Emergency shelter program. 
Sec. 217. Operating assistance for troubled multifamily housing projects. 
Sec. 218. Section 236 assistance. 
Sec. 219. Rent supplement program. 
Sec. 220. Report regarding housing neighborhood strategy area program. 
Sec. 221. Consideration of utility payments made by tenants in assisted housing. 
Sec. 222. Public housing child care demonstration program. 
Sec. 223. Housing for the elderly and handicapped. 
Sec. 224. Congregate services. 
Sec. 225. Demonstration project. 
Sec. 226. Section 235 homeownership assistance. 
Sec. 227. Pet ownership in assisted rental housing for the elderly or handicappeo 
TITLE III—RENTAL HOUSING REHABILITATION AND PRODUCTION 
PROGRAM 
Sec. 301. Rental rehabilitation and development grants. 
Sec. 302. Conforming amendments to the Housing and Community Development 
Act of 1974. 
Sec. 303. Conforming amendments to the National Housing Act. 
TITLE IV—PROGRAM AMENDMENTS AND EXTENSIONS 
PART A—FEDERAL HOUSING ADMINISTRATION MORTGAGE INSURANCE PROGRAMS 
Subpart 1—General Authorities and Requirements 
Sec. 401. Extension of mortgage insurance programs. 
Sec. 402. Amount to be insur^ under the National Housing Act. 
Sec. 403. Authorization of appropriations to cover losses to the Creneral Insurance 
Fund. 
Sec. 404. Elimination of requirement that Federal Housing Administration interest 
rates be set by law. 
Sec. 405. Minimum property standards. 
Sec. 406. Time of payment of mortgage insurance premiums. 
Sec. 407. Mortgage insurance for American Samoa. 
Sec. 408. Assignment of section 221(gX4) mortgages to Government National Mort-
gage Association. 
Sec. 409. Termination of section 221 buy-back provision. 
Subpart 2—Single-Family Mortgage Insurance Programs 
Sec. 415. Title I insurance for existing manufactured homes. 
Sec. 416. Increased title I loan limits for manufactured homes and lots. 
Sec. 417. Refinancing manufactured homes under title I. 
Sec. 418. Counseling for persons assisted under temporary mortgage assistance pay 
ments program. 
Sec. 419. Cooperative housing. 
Sec. 420. Mortgage insurance for condominium units. 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1157 
Sec. 421. Single-family mortgage insurance on Hawaiian home lands. 
Sec. 422. Single family mortgage insurance on Indian reservations. 
Sec. 423. Treatment of Federal Housing Administration single family premiums. 
Sec. 424. Change in maximum loan-to-value ratio for modestly priced single family 
homes. 
Sec. 425. Nonoccupant single family mortgagors. 
Sec. 426. Payment of claims without acquisition of title. 
Sec. 427. Structural defects in Veterans' Administration-approved, Federal Housing 
Administration-insured new homes. 
Sec. 428. Reinsurance demonstration program. 
Subpart 3—Multifamily and Other Mortgage Insurance Programs 
Sec. 431. Discretionary authority to regulate rents or charges. 
Sec. 432. Removal of refinancing limitations on certain multifamily projects. 
Sec. 433. Limitation on prepayment of mortgages on multifamily rental housing. 
Sec. 434. Assumption of loss under multifamily co-insurance. 
Sec. 435. Mortgage insurance for manufactured home parks for the elderly 
Sec. 436. Mortgage insurance for public hospitals. 
Sec. 437. Mortgage insurance for board and care homes. 
Subpart 4—Insurance of Alternative Mortgage Instruments 
Sec. 441. Indexed mortgages. 
Sec. 442. Graduated payment mortgages for multifamily housing. 
Sec. 443. Adjustable rate mortgages for single family housing. 
Sec. 444. Shared appreciation mortgages for single family housing. 
Sec. 445. Shared appreciation mortgages for multifamily housing. 
Sec. 446. Insurance of mortgages not providing for complete amortization. 
Sec. 447. Premium charges for insurance of alternative mortgage instruments. 
Sec. 448. Report on home equity conversion mortgages for the elderly. 
PART B—FLOOD AND PROPERTY INSURANCE PROGRAMS 
Sec. 451. Flood insurance. 
Sec. 452. Crime and riot insurance. 
Sec. 453. Study of sinkhole insurance. 
PART C—REGULATORY AND OTHER PROGRAMS 
Sec. 461. Real estate settlement procedures. 
Sec. 462. National Institute of Building Sciences. 
Sec. 463. Solar Energy and Energy Conservation Bank. 
Sec. 464. Weatherization program. 
Sec. 465. Counseling. 
Sec. 466. Research authorization. 
Sec. 467. National housing partnerships. 
Sec. 468. Report regarding program changes. 
Sec. 469. Periodic report on residential mortgage delinquencies and foreclosures. 
Sec. 470. Public notice and comment regarding Department demonstration pro-
grams. 
Sec. 471. Multifamily mortgage foreclosure. 
Sec. 472. Alternative mortgage transactions. 
Sec. 473. Due-on-sale clause prohibitions. 
Sec. 474. Cancellation of debt owed the Treasury and liquidation of new communi-
ties program. 
PART D—SECONDARY MORTGAGE MARKET PROGRAMS 
Sec. 481. Amount to be guaranteed under the Government National Mortgage Asso-
ciation mortgage-backed securities program. 
Sec. 482. Government National Mortgage Association commitment extension. 
Sec. 483. Special assistance and emergency mortgage purchase assistance functions 
of the Government National Mortgage Association. 
TITLE V—RURAL HOUSING 
Sec. 501. Short title. 
Sec. 502. Definitions. 
Sec. 503. Section 502 amendments. 
Sec. 504. Rehabilitation loans. 
Sec. 505. Technical services and research. 
Sec. 506. Standards for adequate housing. 
Sec. 507. General authority of the Secretary. 
Sec. 508. Amendment to section 511. 
97 STAT. 1158 
PUBLIC LAW 98-181—NOV. 30, 1983 
Sec. 509. Repeal of section 512. 
Sec. 510. Determination of need for housing under sections 514 and 516. 
Sec. 511. Authorizations. 
Sec. 512. Section 515 amendments. 
Sec. 513. Farm labor housing. 
Sec. 514. Insured rural housing loans. 
Sec. 515. Definition of rural area. 
Sec. 516. Shared housing for the elderly and handicapped. 
Sec. 517. Rental assistance tenant contribution. 
Sec. 518. Technical and supervisory assistance. 
Sec. 519. Condominium housing. 
Sec. 520. FHA insurance. 
Sec. 521. Processing of application. 
Sec. 522. Rural housing preservation grant program. 
Sec. 523. Miscellaneous. 
TITLE VI—EXPORT-IMPORT BANK ACT AMENDMENTS OF 1983 
Sec. 601. Short title. 
PART A—EXPORT-IMPORT BANK ACT AMENDMENTS 
Sec. 611. Extension of the Export-Import Bank Act. 
Sec. 612. Competitive mandate. 
Sec. 613. Advisory committee. 
Sec. 614. Terms of directors. 
Sec. 615. Report on authority 
Sec. 616. Exports of services. 
Sec. 617. Competitive insurance. 
Sec. 618. Small business needs. 
Sec. 619. Special facilities in support of United States exports. 
Sec. 620. Technical amendments. 
Sec. 621. Capital level of the Bank. 
Sec. 622. Medium-term financing. 
Sec. 623. Report to Congress. 
PART B—MATCHING CREorrs 
Sec. 631. Matching credits. 
Sec. 632. Report. 
Sec. 633. Technical amendment. 
PART C—TIED AID CREDIT EXPORT SUBSIDIES 
Sec. 641. Short title. 
Sec. 642. Statement of purpose. 
Sec. 643. Negotiating mandate. 
Sec. 644. Establishment of a tied aid credit program in the United States Export-
Import Bank. 
Sec. 645. Establishment of a tied aid credit program in the Agency for International 
Development. 
Sec. 646. Implementation. 
Sec. 647. Definitions. 
TITLE VII-MISCELLANEOUS PROVISIONS 
Sec. 701. Home Mortgage Disclosure Act Amendments. 
Sec. 702. Members to serve until successors are appointed. 
Sec. 703. Extension to March 30, 1984. 
TITLE VIII—INTERNATIONAL MONETARY FUND 
Sec. 801. Promoting conditions for exchange rate stability. 
Sec. 802. Quota increase. 
Sec. 803. Special drawing rights. 
Sec. 804. Instructions to the United States Executive Director. 
Sec. 805. Elimination of agricultural export subsidies. 
Sec. 806. Sustaining economic growth. 
Sec. 807. Opposing Fund bailouts of banks. 
Sec. 808. Surplus commodities. 
Sec. 809. International cooperation. 
Sec. 810. IMF interest rates. 
Sec. 811. Borrowing in United States credit markets. 
Sec. 812. Trade provisions. 
Sec. 813. Reports to Congress. 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1159 
TITLE DC—INTERNATIONAL LENDING SUPERVISION 
Sec. 901. Short title. 
Sec. 902. Declaration of policy. 
Sec. 903. Definitions. 
Sec. 904. Strengthened supervision of international lending. 
Sec. 905. Reserves. 
Sec. 906. Accounting for fees on international loans. 
Sec. 907. Collection and disclosure of certain intemationed lending data. 
Sec. 908. Capital adequacy. 
Sec. 909. Foreign loan evaluations. 
Sec. 910. General authorities. 
Sec. 911. GAO audit authority. 
Sec. 912. Equal representation for the Federal Deposit Insurance Corporation. 
Sec. 913. Reports. 
TITLE X—MULTILATERAL DEVELOPMENT BANKS 
Sec. 1001. Inter-American Development Bank. 
Sec. 1002. Asian Development Bank. 
Sec. 1003. African Development Fund. 
Sec. 1004. Human rights. 
Sec. 1005. Study. 
Sec. 1006. Personnel practices. 
TITLE XI—IMF APPROPRIATION 
Sec. 1101. IMF appropriation. 
Sec. 1102. Condition of international financial system. 
TITLE I—COMMUNITY AND NEIGHBORHOOD 
DEVELOPMENT AND CONSERVATION 
PART A—COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM 
L
O
W AND MODERATE INCOME BENEFIT OBJECTIVE 
SEC. 101. (a) Section 101(c) of the Housing and Community Devel-
opment Act of 1974 is amended— 
42 USC 5301. 
(1) in the first sentence, by inserting after "title" the follow-
ing: "and of the community development program of each 
grantee under this title"; and 
(2) in the second sentence, by inserting after the first comma 
the following: "not less than 51 percent of the aggregate of the 
Federal assistance provided under section 106 and, if applicable, 
42 USC 5306. 
the funds received as a result of a guarantee under section 108, 
42 USC 5308. 
shall be used for the support of activities that benefit persons of 
31 USC 1305. 
low and moderate income, and", 
(b) Section 104(bX3) of such Act is amended— 
42 USC 5304. 
(1) by striking out the first semicolon and inserting in lieu 
thereof ", and"; and 
(2) by inserting before the semicolon at the end thereof the 
following: ", except that the aggregate use of funds received 
under section 106 and, if applicable, as a result of a guarantee 
under section 108, during a period specified by the greuitee of 
not more than 3 years, shall principally benefit persons of low 
and moderate income in a manner that ensures that not less 
than 51 percent of such funds are used for activities that benefit 
such persons during such period". 
DEFINITIONS 
SEC. 102. (a) Section 102(aX4) of the Housing and Community 
Development Act of 1974 is amended— 
42 USC 5302. 
97 STAT. 1160 
PUBLIC LAW 98-181—NOV. 30, 1983 
Metropolitan 
city. 
Notification. 
Classification 
deferral. 
Urban county. 
42 use 5302. 
42 use 5306. 
Definitions. 
42 u s e 5302. 
Post, p. 1179. 
42 use 1437f. 
(1) by striking out the semicolon and all that follows through 
"later'^ and 
(2) by adding at the end thereof the following new sentences: 
"In order to permit an orderly transition of each city losing its 
classification as a metropolitan city by reason of the population 
data of the 1980 decennial census or revisions in the designation 
of metropolitan areas or central cities, any city classified as or 
deemed by law to be a metropolitan city for purposes of assist-
ance under any section of this title for fiscal year 1983 shall 
retain such qualiHcation for purposes of receiving such assist-
ance for fiscal years 1984 and 1985. Any unit of general local 
government that becomes eligible to be classified as a metropoli-
tan city for fiscal year 1984 or 1985 while its population is 
included in an urban county for such fiscal year may, upon 
submission of written notification to the Secretary, defer its 
classification as a metropolitan city for all purposes under this 
title for fiscal years 1984, 1985, and 1986 if such unit of general 
local government continues to have its population included in 
such urban county under subsection (d).". 
(b) Section 102(aX6) of such Act is amended by striking out the last 
sentence and inserting in lieu thereof the following new sentences: 
"In order to permit an orderly transition of each county losing its 
classification as an urban county by reason of a decrease in popula-
tion, any county classified as or deemed to be an urban county under 
this paragraph for purposes of receiving assistance under any sec-
tion of this title for fiscal year 1983 shall retain such qualification 
for purposes of receiving such assistance for fiscal years 1984 and 
1985, or for such longer period covered by a cooperation agreement 
entered into during fiscal year 1984. Notwithstanding the combined 
population smiount set forth in clause (B) of the first sentence, a 
county shall also qualify as an urban county for purposes of assist-
ance under section 106 if such county (A) complies with all other 
requirements set forth in the first sentence; (B) has, according to the 
most recent available decennial census data, a combined population 
between 190,000 and 199,999, inclusive; (C) had a population growth 
rate of not less than 15 percent during the most recent 10-year 
period measured by applicable censuses; and (D) has submitted data 
satisfactory to the Secretary that it has a combined population of 
not less than 200,000.". 
(c) Section 102(a) of such Act is amended by adding at the end 
thereof the following new paragraphs: 
"(20) The terms 'persons of low and moderate income' and 
'low- and moderate-income persons' have the meaning given the 
term 'lower income families' in section 3(bX2) of the United 
States Housing Act of 1937. The term 'persons of very low 
income' has the meaning given the term 'very low-income fami-
lies' in such section. For purposes of such terms, the area 
involved shall be determined in the same manner as such area 
is determined for purposes of assistance under section 8 of such 
Act. 
"(21) The term 'buildings for the general conduct of govern-
ment' means city halls, county administrative buildings, State 
capital or office buildings or other facilities in which the legisla-
tive or general administrative affairs of the government are 
conducted. Such term does not include such facilities as neigh-
borhood service centers or special purpose buildings located in 
low- and moderate-income areas that house various nonlegisla-
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1161 
tive functions or services provided by government at decentral-
(d) Section 102 of such Act is amended by striking out "Depart- 
42 USC 5302. 
ment of Commerce" each place it appears in paragraphs (3), (4), and 
(9) of subsection (a) and in subsection (b) and inserting in lieu thereof 
"Office of Management and Budget". 
(e) Section 102(b) of such Act is amended by striking out the last 
sentence. 
if) The last sentence of section 102(d) of such Act is amended by 
inserting before the period at the end thereof the following: ", except 
where the unit of general local government loses the designation of 
metropolitan city". 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 103. Section 103 of the Housing and Community Development 
Act of 1974 is amended by striking out the second sentence and 
42 USC 5303. 
inserting in lieu thereof the following: "There are authorized to be 
appropriated for purposes of assistance under sections 106 and 107 
COAV^^ ^^^^' 
not to exceed $3,468,000,000 for each of the fiscal years 1984, 1985, 
^^O^-
and 1986.". 
STATEMENT OF ACTIVITIES AND REVIEW 
SEC. 104. (a) Section 104(aXl) of the Housing and Community 
Develpment Act of 1974 is amended by adding at the end thereof the 
42 USC 5304. 
following new sentence: "In all cases, beginning in Hscal year 1984, 
the statement required in this subsection shall include a description 
of the use of funds made available under section 106 in fiscal year 
42 USC 5306. 
1982 and thereafter (or, beginning in fiscal year 1985, such use since 
preparation of the last statement prepared pursuant to this subsec-
tion) together with an assessment of the relationship of such use to 
the community development objectives identified in the statement 
prepared pursuant to this subsection for such previous fiscal years 
and to the requirements of section 104(bX3).". 
Ante, p. 1159. 
(b) Section 104(aX2) of such Act is amended— 
(1) in the first sentence, by inserting "in a timely manner" 
after "shall"; 
(2) in subparagraph (A)— 
(A) by inserting after "citizens" the following: "or, as 
appropriate, units of general local government"; and 
(B) by inserting before the semicolon at the end thereof 
the following: ", including the estimated amount proposed 
to be used for activities that will benefit persons of low and 
moderate income and the plans of the grantee for minimiz-
ing displacement of persons as a result of activities assisted 
with such funds and to assist persons actually displaced as 
a result of such activities"; 
(3) by striking out "and" at the end of subparagraph (B); 
(4) by striking out the period at the end of subparagraph (C) 
and inserting in lieu thereof a semicolon; 
(5) by inserting after subparagraph (C) the following new 
subparagraphs: 
"(D) provide citizens or, as appropriate, units of general local 
government with reasonable access to records regarding the 
past use of funds received under section 106 by the grantee; and 
42 USC 5306. 
"(E) provide citizens or, as appropriate, units of general local 
government with reasonable notice of, and opportunity to com-
97 STAT. 1162 
PUBLIC LAW 98-181—NOV. 30, 1983 
ment on, any substantial change proposed to be made in the use 
42 use 5306. 
of funds received under section 106 from one eligible activity to 
another."; and 
(6) by adding at the end thereof the following new sentence: 
"Any final statement of activities may be modified or amended 
from time to time by the grantee in accordance with the same 
procedures required in this paragraph for the preparation and 
submission of such statement.". 
42 use 5304. 
(c) Section 104(b) of such Act is amended— 
(1) by inserting before the semicolon at the end of paragraph 
(2) the following: ", and the grantee will affirmatively further 
fair housing"; 
(2) by striking out "and" at the end of paragraph (3); 
(3) by redesignating paragraph (4) as paragraph (6); and 
(4) by inserting after paragraph (3) the following new 
paragraphs: 
"(4) it has developed a community development plan, for the 
period specified by the grantee under paragraph (3), that identi-
fies community development and housing needs and specifies 
both short- and long-term community development objectives 
that have been developed in accordance with the primary objec-
tive and requirements of this title; 
"(5) the grantee will not attempt to recover any capital costs 
of public improvements assisted in whole or part under section 
42 use 5306. 
106 or with amounts resulting from a guarantee under section 
42 use 5308. 
108 by assessing any amount against properties owned and 
31 use 1305. 
occupied by persons of low and moderate income, including any 
fee charged or assessment made as a condition of obtaining 
access to such public improvements, unless (A) funds received 
under section 106 are used to pay the proportion of such fee or 
assessment that relates to the capital costs of such public 
improvements that are financed from revenue sources other 
than under this title; or (B) for purposes of assessing any 
amount against properties owned and occupied by persons of 
low and moderate income who are not persons of very low 
income, the grantee certifies to the Secretary that it lacks 
sufficient funds received under section 106 to comply with the 
requirements of subparagraph (A); and". 
(d) Section 104(cXlXA) of such Act is amended by inserting after 
"community" the first place it appears the following: "(including the 
number of vacant and abandoned dwelling units)". 
(e) Section 104(d) of such Act is amended— 
(1) by inserting "and evaluation" after "performance" in the 
first sentence; 
(2) by inserting "and to the requirements of subsection (bX3)" 
after "subsection (a)" in the first sentence; and 
Report. 
(3) by inserting after the first sentence the following: "Such 
report shall also be made available to the citizens in each 
grantee's jurisdiction in sufficient time to permit such citizens 
to comment on such report prior to its submission, and in such 
manner and at such times as the grantee may determine. The 
grantee's report shall indicate its programmatic accomplish-
ments, the nature of and reasons for changes in the grantee's 
program objectives, indications of how the grantee would 
change its programs as a result of its experiences, and an 
evaluation of the extent to which, its funds were used for 
activities that benefited low- and moderate-income persons. The 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1163 
report shall include a summary of any comments received by 
the grantee from citizens in its jurisdiction respecting its pro-
gram. The Secretary shall encourage and assist national associ-
ations of grantees eligible under section 106(dX2XB), national 
associations of States, and national associations of units of 
general local government in nonentitlement areas to develop 
and recommend to the Secretary, within one year after the 
effective date of this sentence, uniform recordkeeping, perform-
ance reporting, and evaluation reporting, and auditing require-
ments for such grantees. States, and units of local government, 
respectively. Based on the Secretary's approval of these recom-
mendations, the Secretary shall establish such requirements for 
use by such grantees. States, and units of local government.". 
(f) The second sentence of section 104(gXl) of such Act is amended 
by inserting after "payment" the following: "and substantial dis-
bursements from such fund must begin within 180 days after receipt 
of such payment". 
(g) Section 104 of such Act is amended by adding at the end 
thereof the following new subsections: 
"(i) Notwithstanding any other provision of law, any unit of 
general local government may retain any program income that is 
realized from any grant made by the Secretary, or any amount 
distributed by a State, under section 106 if (1) such income was 
realized after the initial disbursement of the funds received by such 
unit of general local government under such section; and (2) such 
unit of general local government has agreed that while the unit of 
general local government is participating in a community develop-
ment program under this title it will utilize the program income for 
eligible community development activities in accordance with the 
provisions of this title. A State may require as a condition of any 
amount distributed by such State under section 106(d) that a unit of 
general local government shall pay to such State any such income to 
be used by such State to fund additional eligible community develop-
ment activities, except that such State shall waive such condition to 
the extent such income is applied to continue the activity from 
which such income was derived. 
"(j) Each grantee shall provide for reasonable benefits to any 
person involuntarily and permanently displaced as a result of the 
use of assistance received under this title to acquire or substantially 
rehabilitate property.". 
Recommenda-
tions. 
42 u s e 5306. 
Requirements. 
42 use 5304. 
42 use 5306. 
Payment and 
waiver. 
EUGIBLE ACnVITIES 
SEC. 105. (a) Section 105(aX2) of the Housing and Community 
Development Act of 1974 is amended to read as follows: 
'(2) the acquisition, construction, reconstruction, or installa-
tion (including design features and improvements with respect 
to such construction, reconstruction, or installation that pro-
mote energy efficiency) of public works, facilities (except for 
buildings for the general conduct of government), and site or 
other improvements;". 
(bXD Section 105(aX8) of such Act is amended— 
(A) by striking out "10" and inserting in lieu thereof "15"; 
and 
(B) by inserting before the semicolon at the end thereof the 
following: "unless such unit of general local government used 
more than 15 percent of the assistance received under this title 
42 use 5305. 
97 STAT. 1164 
PUBLIC LAW 98-181—NOV. 30, 1983 
Ante, p. 13. 
42 u s e 5305 
note. 
42 u s e 5305. 
Elderly families. 
42 use 1437a. 
42 use 5306. 
for fiscal year 1983 for such activities (excluding any assistance 
received pursuant to Public Law 98-8), in which case such unit 
of general local government may use not more than the percent-
age or amount of such assistance used for such activities for 
such fiscal year, whichever method of calculation yields the 
higher amount". 
(2) Section 303(b) of the Housing and Community Development 
Amendments of 1981 is amended by striking out ", 1983, and 1984" 
and inserting in lieu thereof "and 1983". 
(c) Section 105(aX14) of the Housing and Community Development 
Act of 1974 is amended by inserting after "public facilities" the 
following: "(except for buildings for the general conduct of 
government)". 
(d) Section 105(aX15) of such Act is amended by inserting the 
following before the semicolon at the end thereof: ", including 
grants to neighborhood-based nonprofit organizations, or other pri-
vate or public nonprofit organizations, for the purpose of assisting, 
as part of neighborhood revitalization or other community develop-
ment, the development of shared housing opportunities (other than 
by construction of new facilities) in which elderly families (as de-
fined in section 3(bX3) of the United States Housing Act of 1937) 
benefit as a result of living in a dwelling in which the facilities are 
shared with others in a manner that effectively and efficiently 
meets the housing needs of the residents and thereby reduces their 
cost of housing". 
(e) Section 105 of such Act is amended by adding at the end 
thereof the following new subsection: 
"(cXD In any case in which an assisted activity described in 
paragraph (14) or (17) of subsection (a) is identified as principally 
benefiting persons of low and moderate income, such activity shall— 
"(A) be carried out in a neighborhood consisting predomi-
nately of persons of low and moderate income and provide 
services for such persons; or 
"(B) involve facilities designed for use predominately by per-
sons of low and moderate income; or 
"(C) involve employment of persons, a majority of whom are 
persons of low and moderate income. 
"(2) In any case in which an assisted activity described in subsec-
tion (a) is designed to serve an area generally and is clearly designed 
to meet identified needs of persons of low and moderate income in 
such area, such activity shall be considered to principally benefit 
persons of low and moderate income if (A) not less than 51 percent of 
the residents of such area are persons of low and moderate income; 
or (B) in any jurisdiction having no areas meeting the requirements 
of subparagraph (A), the area served by such activity has a larger 
proportion of persons of low and moderate income than not less than 
75 percent of the other areas in the jurisdiction of the recipient. 
"(3) Any assisted activity under this title that involves the acquisi-
tion or rehabilitation of property to provide housing shall be consid-
ered to benefit persons of low and moderate income only to the 
extent such housing will, upon completion, be occupied by such 
persons.". 
ALLOCATION AND DISTRIBUTION OF FUNDS 
SEC. 106. (a) Section 106(b) of the Housing and Community Devel-
opment Act of 1974 is amended by adding at the end thereof the 
following new paragraph: 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1165 
"(6XA) Where data are available, the amount determined under 
paragraph (1) for a metropolitan city that has been formed by the 
consolidation of one or more metropolitan cities with an urban 
county shall be equal to the sum of the amounts that would have 
been determined under paragraph (1) for the metropolitan city or 
cities and the balance of the consolidated government, if such 
consolidation had not occurred. This paragraph shall apply only to 
any consolidation that— 
"(i) included all metropolitan cities that received grants under 
this section for the fiscal year preceding such consolidation and 
that were located within the urban county; 
"(ii) included the entire urban county that received a grant 
under this section for the fiscal year preceding such consolida-
tion; and 
"(iii) took place on or after January 1,1983. 
"(B) The population growth rate of all metropolitan cities referred 
to in section 102(aX12) shall be based on the population of (i) 
metropolitan cities other than consolidated governments the grant 
for which is determined under this paragraph; and (ii) cities that 
were metropolitan cities before their incorporation into consolidated 
governments. For purposes of calculating the entitlement share for 
the balance of the consolidated government under this paragraph, 
the entire balance shall be considered to have been an urban 
county.". 
(b) Section 106(cXlXB) of such Act is amended to read as follows: 
"(B) in reallocating amounts resulting from an action under 
section 104(d) or section 111, a city or county against whom any 
such action was taken in a fiscal year shall be excluded from a 
calculation of share for purposes of reallocating, in the succeed-
ing year, the amounts becoming available as a result of such 
action; and". 
(c) Section 106(c) of such Act is amended by adding at the end 
thereof the following new paragraph: 
"(3) Notwithstanding the provisions of paragraph (1), the Secre-
tary may upon request transfer responsibility to any metropolitan 
city for the administration of any amounts received, but not 
obligated, by the urban county in which such city is located if (A) 
such city was an included unit of general local government in such 
county prior to the qualification of such city as a metropolitan city; 
(B) such amounts were designated and received by such county for 
use in such city prior to the qualification of such city as a metropoli-
tan city; and (C) such city and county agree to such transfer of 
responsibility for the administration of such amounts.". 
(dXD Section 106(dX2XA) of such Act is amended— 
(A) by striking out "the State" and inserting in lieu thereof "a 
State that has elected, in such manner and at such time as the 
Secretary shall prescribe"; and 
(B) by inserting after clause (ii) the following new sentence: 
"Any election to distribute funds made after the close of fiscal year 
1984 is permanent and final.". 
(2) Section 106(dX2XB) of such Act is amended by striking out 
"where" and all that follows through the period at the end thereof 
and inserting in lieu thereof the following: "if the State has not 
elected to distribute such amounts.". 
(e) Section 106(dX2XC) of such Act is amended by striking out 
clause (iii) and inserting in lieu thereof the following new clause: 
Consolidation. 
42 use 5302. 
42 use 5306. 
Ante, p. 1162. 
42 use 5311. 
Transfer of 
responsibility. 
97 STAT. 1166 
PUBLIC LAW 98-181—NOV. 30, 1983 
42 use 5306. 
Certification. 
Pajmients. 
Ante, p. 1162. 
42 use 5311. 
42 u s e 2000a 
note. 
82 Stat. 73. 
42 use 5304. 
"(iii) will not refuse to distribute such amounts to any unit of 
general local government on the basis of the particular eligible 
activity selected by such unit of general local government to 
meet its community development needs, except that this clause 
may not be considered to prevent a State from establishing 
priorities in distributing such amounts on the basis of the 
activities selected; and". 
(f) Section 106(dX2) of such Act is amended by adding at the end 
thereof the following new subparagraph: 
"(D) To receive and distribute amounts allocated under paragraph 
(1), the Governor of each State shall certify that each unit of general 
local government to be distributed funds will be required to identify 
its community development and housing needs, including the needs 
of low and moderate income persons, and the activities to be under-
taken to meet such needs.". 
(g) The second and third sentences of section 106(dX3XA) of such 
Act are amended to read as follows: "The State shall pay from its 
own resources all administrative expenses incurred by the State in 
carrying out its responsibilities under this title, except that from the 
amounts received for distribution in nonentitlement areeis, the State 
may deduct an amount to cover such expenses not to exceed the sum 
of $102,000 plus 50 percent of any such expenses in excess of 
$100,000. Amounts deducted in excess of $100,000 shall not exceed 2 
percent of the amount so received.". 
(h) Section 106(dX3) of such Act is amended by striking out 
subparagraph (C) and inserting in lieu thereof the following: 
"(C) Any amounts allocated for use in a State under paragraph (1) 
that are not received by the State for any fiscal year because of 
failure to meet the requirements of subsection (a) or (b) of section 
104, or that become available as a result of actions against the State 
under section 104(d) or 111, shall be added to amounts allocated to 
all States under paragraph (1) for the succeeding fiscal year. 
"(D) Any amounts allocated for use in a State under paragraph (1) 
that become available as a result of actions under section 104(d) or 
111 against units of general local government in nonentitlement 
areas of the State or as a result of the closeout of a grant made by 
the Secretary under this section in nonentitlement areas of the 
State shall be added to amounts allocated to the State under para-
graph (1) for the fiscal year in which the amounts become so 
available.". 
(i) Section 106(d) of such Act is amended by adding at the end 
thereof the following new paragraphs: 
"(5) No amount may be distributed by any State or the Secretary 
under this subsection to any unit of general local government 
located in a nonentitlement area unless such unit of general local 
government certifies that— 
"(A) it will minimize displacement of persons as a result of 
activities assisted with such amounts; 
"(B) its program will be conducted and administered in con-
formity with Public Law 88-352 and Public Law 90-284, and 
that it will affirmatively further fair housing; 
"(C) it will provide for opportunities for citizen participation, 
hearings, and access to information with respect to its commu-
nity development program that are comparable to those 
required of grantees under section 104(aX2); and 
(D) it will not attempt to recover any capital costs of public 
improvements assisted in whole or part under section 106 or 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1167 
with amounts resulting from a guarantee under section 108 by 
42 USC 5308. 
assessing any amount against properties owned and occupied by 
31 USC 1305. 
persons of low and moderate income, including any fee charged 
or assessment made as a condition of obtaining access to such 
public improvements, unless (i) funds received under section 106 
42 USC 5306. 
are used to pay the proportion of such fee or assessment that 
relates to the capital costs of such public improvements that are 
financed from revenue sources other than under this title; or (ii) 
for purposes of assessing any amount against properties owned 
and occupied by persons of low and moderate income who are 
not persons of very low income, the grantee certifies to the 
Secretary or such State, as the case may be, that it lacks 
sufficient funds received under section 106 to comply with the 
requirements of clause (i). 
"(6) Any activities conducted with amounts received by a unit of 
general local government under this subsection shall be subject to 
the applicable provisions of this title and other Federal law in the 
same manner and to the same extent as activities conducted with 
amounts received by a unit of general local government under 
subsection (a).", 
(j) Section 106(f) of such Act is amended to read as follows: 
42 USC 5306. 
"(f) If the total amount available for distribution in any fiscal year 
to metropolitan cities and urban counties under this section is 
insufficient to provide the amounts to which metropolitan cities and 
urban counties would be entitled under subsection (b), and funds are 
not otherwise appropriated to meet the deficiency, the Secretary 
shall meet the deficiency through a pro rata reduction of all 
amounts determined under subsection (b). If the total amount avail-
able for distribution in any fiscal year to metropolitan cities and 
urban counties under this section exceeds the amounts to which 
metropolitan cities and urban counties would be entitled under 
subsection (b), the Secretary shall distribute the excess through a 
pro rata increase of all amounts determined under subsection (b).". 
DISCRETIONARY FUND 
SEC. 107. (a) Section 107(a) of the Housing and Community Devel-
opment Act of 1974 is amended by striking out the first sentence and 
42 USC 5307. 
inserting in lieu thereof the following: "Of the total amount 
approved in appropriation Acts under section 103 for each of the 
^^ USC 5303. 
fiscal years 1984,1985, and 1986, not more than $68,200,000 for each 
such fiscal year may be set aside in a special discretionary fund for 
grants under subsection (b).". 
Cb) Section 107(bX4) of such Act is amended to read as follows: 
"(4) to States, units of general local government, Indian 
tribes, or areawide planning organizations for the purpose of 
providing technical assistance in planning, developing, and 
administering assistance under this title; to groups designated 
by such governmental units to assist them in carrying out 
assistance under this title; to qualified groups for the purpose of 
assisting more than one such governmental unit to carry out 
assistance under this title; and to States and units of general 
local government for implementing special projects otherwise 
authorized under this title; and the Secretary may also provide 
technical assistance, directly or through contracts, to such gov-
ernmental units and groups; and", 
(c) Section 107(b) of such Act is amended— 
97 STAT. 1168 
PUBLIC LAW 98-181—NOV. 30, 1983 
42 use 5306. 
(1) by striking out "and" at the end of paragraph (3); and 
(2) by adding at the end thereof the following new paragraph: 
"(5) to States and units of general local government for the 
purpose of allocating amounts to any such State or unit of 
general local government that is determined by the Secretary to 
have received insufficient amounts under section 106 as a result 
of a miscalculation of its share of funds under such section.". 
GUARANTEE OF LOANS 
Financing. 
SEC. 108. (a) Section 108(a) of the Housing and Community Devel-
42 use 5308. 
opment Act of 1974 is amended by inserting after the first sentence 
the following new sentence: "A guarantee under this section may be 
used to assist a grantee in obtaining financing only if the grantee 
has made efforts to obtain such financing without the use of such 
guarantee and cannot complete such financing consistent with the 
timely execution of the program plans without such guarantee.", 
(b) Section 108(a) of such Act is amended by striking out the last 
sentence and inserting in lieu thereof the following: "Notwithstand-
ing any other provision of law and subject only to the absence of 
qualified applicants or proposed activities, to the authority provided 
in this section, and to any funding limitation approved in appropri-
ation Acts, the Secretary shall enter into commitments during fiscal 
year 1984 to guarantee notes and obligations under this section with 
an aggregate principal amount of $225,000,000.". 
42 use 5312. 
42 use 1450. 
USE OF GRANTS TO SETTLE OUTSTANDING URBAN RENEWAL LOANS 
SEC. 109. Section 112 of the Housing and Community Development 
Act of 1974 is amended by adding at the end thereof the following 
new subsection: 
"(c) Any unit of general local government may retain any pro-
gram income that is realized from a grant made by the Secretary 
pursuant to subsection (a) or under title I of the Housing Act of 1949 
if (1) such income was realized after the initial disbursement of the 
grant funds by such unit of general local government; and (2) such 
unit of general local government agrees to utilize the program 
income for eligible community development activities in accordance 
with the provisions of this title.". 
42 use 5316. 
42 use 5316 
note. 
TRANSITION PROVISIONS 
SEC. 110. (a) Section 116(b) of the Housing and Community Devel-
opment Act of 1974 is amended by— 
(1) striking out "(in that fiscal vear)"; and 
(2) striking out "in that year' and inserting in lieu thereof 
"for that year". 
O
b
) The amendments made by this section shall apply only to 
funds available for fiscal year 1984 and thereafter. 
PART B—OTHER PROGRAMS 
42 use 5318. 
URBAN D E V E L O P M E N T ACTION GRANTS 
SEC. 121. (a) Section 119(a) of the Housing and Community Devel-
opment Act of 1974 is amended by adding at the end thereof the 
following new sentence: "There are authorized to be appropriated to 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1169 
carry out the provisions of this section not to exceed $440,000,000 for 
each of the fiscal years 1984, 1985, and 1986, and any amount 
appropriated under this sentence shall remain available until 
expended.". 
Oa) Section 119(bXl) of such Act is amended— 
(1) in the last sentence, by striking out "where data are 
available, the extent of unemployment and job lag" and insert-
ing in lieu thereof the following: "the extent of unemployment, 
job lag, or surplus labor"; and 
(2) by adding at the end thereof the following new sentences: 
"Any city that has a population of less than 50,000 persons and 
is not the central city of a metropolitan area, and that was 
eligible for JEiscal year 1983 under this paragraph for assistance 
under this section, shall continue to be eligible for such assist-
ance until the Secretary revises the standards for eligibility for 
such cities under this paragraph and includes the extent of 
unemplojnnent, job lag, or labor surplus as a standard of dis-
tress for such cities. The Secretary shall make such revision as 
soon as practicable following the effective date of this 
sentence.". 
(c) Subparagraphs (A) and (B) of section 119(bX2) of such Act ar 
each amended by inserting "neighborhood statistics areas," aftei 
"enumeration districts,". 
(d) Section 119(cX3) of such Act is amended— 
(1) by striking out ", and (B)" and inserting in lieu thereof "; 
(B)"; and 
(2) by inserting the following after "carried out" in clause (B): 
"; and (C) has made available the analysis described in clause 
(B) to any interested person or organization residing or located 
in the neighborhood in which the proposed activities are to be 
carried out". 
(e) Section 119(dXl) of such Act is amended in the first sentence by 
adding after the word "criteria" where it first appears: "for a 
national competition". 
(f) Section 119(i) of such Act is amended by adding at the end 
thereof the following new sentence: "The Secretary shall encourage 
cooperation by geographically proximate cities oi less than 50,000 
population by permitting consortia of such cities, which may also 
include county governments that are not urban counties, to apply 
for grants on behalf of a city that is otherwise eligible for assistance 
under this section. Any grants awarded to such consortia shall be 
administered in compliance with eligibility requirements applicable 
to individual cities.". 
(g) Section 119 of such Act is amended by adding at the end 
thereof the following new subsections: 
"(p) An unincorporated portion of an urban county that is 
approved by the Secretary as an identifiable community for pur-
poses of this section is eligible for a grant under subsection (bX2) if 
such portion meets the eligibility requirements contained in the 
first sentence of subsection (bXD and the requirements of subsection 
(bX2XB) (applied to the population of the portion of the urban 
county) and if it otherwise complies with the provisions of this 
section. 
"(q) Of the amounts appropriated for purposes of this section for 
any fiscal year, not more than $2,500,000 may be used by the 
Secretary to make technical assistance grants to States or their 
agencies, municipal technical advisory services operated by universi-
Standards 
revision. 
42 use 5318. 
Consortia of 
cities. 
97 STAT. 1170 
PUBLIC LAW 98-181—NOV. 30, 1983 
ties, or State associations of counties or municipalities, to enable 
such entities to assist units of general local government described in 
subsection (i) in developing, applying for assistance for, and imple-
menting programs eligible for assistance under this section. 
"(r) In providing assistance under this section, the Secretary may 
not discriminate among programs on the basis of the particular type 
of activity involved, whether such activity is primarily a neighbor-
hood, industrial, or commercial activity.". 
URBAN HOMESTEADING 
SEC. 122. (a) The first sentence of section 810(h) of the Housing and 
12 use 1706e. 
Community Development Act of 1974 is amended by striking out 
"apd (g)" and all that follows through "1983" and inserting in lieu 
thereof the following: ", (g), (h), and (i), there are authorized to be 
appropriated not to exceed $12,000,000 for fiscal year 1984, and such 
sums as may be necessary for fiscal year 1985". 
O
t
>
) Section 810(aX3) of such Act is amended by inserting "by a 
person legally entitled to reside there" before the semicolon. 
(c) Section 81O0bX3) of such Act is amended— 
(1) by striking out "three years" in subparagraph (A) and 
inserting in lieu thereof "5 years, except under such emergency 
standards as may be prescribed by the Secretary"; 
(2) by striking out subparagraph (B) and inserting in lieu 
thereof the following: 
"(B) repair all defects in the property that pose a substan-
tial danger to health and safety within 1 year of the date of 
such initial conveyance;"; and 
(3) by striking out "eighteen months after occup)dng the 
property" in subparagraph (C) and inserting in lieu thereof "3 
years after the date of initial conveyance". 
(d) Section 810(b) of such Act is amended— 
(1) by striking out "and" at the end of paragraph (5); 
(2) by striking out the period at the end of paragraph (6) and 
inserting in lieu thereof ; and"; and 
(3) by adding at the end thereof the following new paragraph: 
"(7) an equitable procedure for selecting the recipients of such 
properties that— 
"(A) gives a special priority to applicants— 
' (i) whose current housing fails to meet standards of 
health and safety, including overcrowding; 
"(ii) who currently pay in excess of 30 percent of 
their income for shelter; and 
"(iii) who have little prospect of obtaining improved 
housing within the foreseeable future through means 
other than homesteading; 
"(B) excludes applicants who are currently homeowners; 
and 
"(C) takes into account the capacity of the applicant to 
contribute a substantial amount of labor to the rehabilita 
tion process, or to obtain assistance from private sources, 
community organizations, or other sources.'. 
(e) Section 810(f) of such Act is amended— 
(1) by inserting ", the Secretary of Agriculture," after "Secre-
tary" each place it appears; 
(2) by striking out one- to four-family residences" and insert-
ing in lieu thereof "residential properties"; and 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1171 
(3) by adding at the end thereof the following new sentence: 
"Such listing shall be accessible to the public during ordinary 
business hours at the offices of such unit of general loc^ 
government or public agency.", 
(f) Section 810 of such Act is amended— 
(1) in subsection (c), by inserting "or (h)" after "subsection 
(b)"; 
(2) by redesignating subsection (h) as subsection (k); and 
(3) by inserting after subsection (g) the following new 
subsections: 
"(hXD The Secretary may, on a demonstration basis during fiscal 
years 1984 and 1985, convey to any unit of general local government 
or public agency designated by such unit of general local govern-
ment any real property— 
"(A) to which the Secretary holds title; and 
"(B) that the Secretary determines to be suitable for a multi-
family homesteading program that complies with the require-
ments of paragraph (2); 
for such consideration, if any, as may be agreed upon between the 
Secretary and such unit of general local government or public 
agency. 
"(2) Any multifamily homesteading program carried out by any 
unit of general local government or public c^ency designated by any 
such unit of general local government shall be considered a multi-
family homesteading program that complies with the requirements 
of this subsection if the Secretary determines that such program 
contains adequate assurances that— 
"(A) the primary use of all homestead properties following 
conversion or rehabilitation shall be residential; and 
"(B) not less than 75 percent of the residential occupants of 
homestead properties following conversion or rehabilitation 
shall be lower income families. 
"(3) As used in this subsection and subsection (i) the term 'lower 
income families' has the meaning given such term in section 3(bX2) 
of the United States Housing Act of 1937. 
"(iXD The Secretary shall use not more than $1,000,000 of the 
amounts appropriated under this section for each of the fiscal years 
1984 and 1985 to undertake a program to demonstrate the feasibility 
of providing assistance to State or local governments or their agen-
cies for the purchase of any real property that— 
"(A) is improved by one- to four-family residence; 
"(B) is not occupied by a person legally entitled to reside 
there; 
"(C) is designated by a State or general unit of local govern-
ment for use in a single family homestead program; and 
"(D) will be conveyed to lower income families under such 
program upon condition that each such family agrees— 
"(i) to occupy the property as a principal residence for a 
period of not less than 5 years, except under such 
emergency standards as may be prescribed by the 
Secretary; 
"(ii) to repair all defects in the property that pose a 
substantied danger to health or safety within 1 year of the 
date of the initial conveyance; and 
"(iii) to make such repairs and improvements to the 
property as may be necessary to meet applicable local 
Public access. 
12 u s e 1706e. 
Property 
conveyance. 
"Lower income 
families." 
42 u s e 1437a. 
97 STAT. 1172 
PUBLIC LAW 98-181—NOV. 30, 1983 
standards for decent, safe, and sanitary housing within 3 
years after the date of the initial conveyance. 
"(2) The Secretary shall give a preference to demonstrations 
under this subsection involving the acquisition of properties that 
become available in satisfaction of public liens such as tax liens. 
Evaluation. 
"(j) The Secretary shall conduct a continuing evaluation of the 
Report to 
demonstration programs carried out under subsections (h) and (i) 
Congress. 
^nd shall transmit to the Congress a report not later than December 
Recommenda- 
3^^ 1985, containing a summary of his evaluation of all such pro-
^°^^' 
grams and his recommendations for the future conduct of such 
programs.". 
NEIGHBORHOOD DEVELOPMENT DEMONSTRATION 
Definitions. 
SEC. 123. (a) For the purposes of this section: 
42 use 5318 
(1) 'pjjg term "eligible neighborhood development activity" 
^ 
means— 
(A) creating permanent jobs in the neighborhood; 
(B) establishing or expanding businesses within the 
neighborhood; 
(C) developing, rehabilitating, or managing neighborhood 
housing stock; 
(D) developing delivery mechanisms for essential services 
that have lasting benefit to the neighborhood; or 
(E) planning, promoting, or financing voluntary neighbor-
hood improvement efforts. 
(2) The term "eligible neighborhood development organiza-
tion" means— 
(A) an entity organized as a private, voluntary, nonprofit 
corporation under the laws of the State in which it 
operates; 
(B) an organization that is responsible to residents of its 
neighborhood through a governing body, not less than 51 
per centum of the members of which are residents of the 
area served; 
(C) an organization that has conducted business for at 
least three years prior to the date of application for 
participation; 
(D) an organization that operates within an area that 
meets the requirements for Federal assistance under sec-
tion 119 of the Housing and Community Development Act 
42 use 5318. 
of 1974; and 
(E) an organization that conducts one or more eligible 
neighborhood development activities that have as their 
primary beneficiaries low- and moderate-income persons, as 
defined in section 102(aX20) of the Housing and Community 
Ante, p. 1160. 
Development Act of 1974. 
(3) The term "Secretary" means the Secretary of Housing and 
Urban Development. 
Program. 
(bXD The Secretary shall carry out, in accordance with this 
section, a demonstration program to determine the feasibility of 
supporting eligible neighborhood development activities by provid-
ing Federal matching funds to eligible neighborhood development 
organizations on the basis of the monetaiy support such organiza-
tions have received from individuals, businesses, and nonproHt or 
other organizations in their neighborhoods prior to receiving assist-
ance under this section. 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1173 
(2) The Secretary shall accept applications from eligible neighbor- 
Applications. 
hood development organizations for participation in the demonstra-
tion program. Eligible organizations may participate in more than 
one year of the program, but shall be required to submit a new 
application and to compete in the selection process for each program 
year. Not more than 30 per centum of the grants may be for 
multiyear awards. 
(3) From the pool of eligible neighborhood development organiza-
tions submitting applications for participation in a given program 
year, the Secretary shall select participating organizations in an 
appropriate number through a competitive selection process. To be 
selected, an applicant shall— 
(A) have demonstrated measurable achievements in one or 
more of the activities specified in subsection (aX4); 
(B) specify a business plan for accomplishing one or more of 
the activities specified in subsection (aX4); and 
(C) specify a strategy for achieving greater long term private 
sector support. 
(cXD The Secretary shall award grants under this section among 
the eligible neighborhood development organizations submitting ap-
plications for such grants on the basis o
f
— 
(A) the degree of economic distress of the neighborhood 
involved; 
(B) the extent to which the proposed activities will benefit 
persons of low and moderate income; 
(C) the extent of neighborhood participation in the proposed 
activities, as indicated by the proportion of the households and 
businesses in the neighborhood involved that are members of 
the eligible neighborhood development organization involved; 
and 
(D) the extent of voluntary contributions available for the 
Waiver. 
purpose of subsection (eX4), except that the Secretary shall 
waive the requirement of this subparagraph in the case of an 
application submitted by a small eligible neighborhood develop-
ment organization, an application involving activities in a very 
low-income neighborhood, or an application that is especially 
meritorious, 
(d) The Secretary shall consult with an informal working group 
representative of eligible neighborhood organizations with respect to 
the implementation and evaluation of the program established in 
this section. 
(eXD The Secretary shall assign each participating organization a 
defined program year, during which time voluntary contributions 
from individuals, businesses, and nonprofit or other organizations in 
the neighborhood shall be eligible for matching. 
(2) Subject to paragraph (3), at the end of each three-month period 
Payment, 
occurring during the program year, the Secretary shall pay to each 
participating neighborhood development organization the product 
o
f
— 
(A) the aggregate amount of voluntary contributions that 
such organization certifies to the satisfaction of the Secretary it 
received during such three-month period; and 
(B) the matching ratio established for such test neighborhoods 
under paragraph (4). 
(3) The Secretary shall pay not more than $50,000 under this Act 
Payment. 
to any participating neighborhood development organization during 
a single program year. 
97 STAT. 1174 
PUBLIC LAW 98-181—NOV. 30, 1983 
Federally 
matched funds. 
Certification. 
42 u s e 2000a 
note. 
Evaluation and 
report to 
Congress. 
Reports to 
Congress. 
42 u s e 1452b. 
(4) For purposes of paragraph (2), the Secretary shall, for each 
participating organization, determine an appropriate ratio by which 
monetary contributions made to participating neighborhood devel-
opment organizations will be matched by Federal funds. The highest 
such ratios shall be established for neighborhoods having the small-
est number of households or the greatest degree of economic 
distress. 
(5) The Secretary shall insure that— 
(A) grants and other forms of assistance may be maae 
available under this section only if the application contains a 
certification by the unit of general local government within 
which the neighborhood to be assisted is located that such 
assistance is not inconsistent with the housing and community 
development plans of such unit, except that the failure of a unit 
of general local government to respond to a request for a 
certification within thirty days after the request is made shall 
be deemed to be a certification; and 
(B) eligible neighborhood development activities comply with 
all applicable provisions of the Civil Rights Act of 1964. 
(6) To carry out this section, the Secretary— 
(A) may issue regulations as necessary; 
(B) shall utilize, to the fullest extent practicable, relevant 
research previously conducted by Federal agencies, State and 
local governments, and private organizations and persons; 
(C) shall disseminate information about the kinds of activities, 
forms of organizations, and fund-raising mechanisms associated 
with successful programs; 
(D) shall undertake any other activity the Secretary deems 
necessary to carry out this section, which shall include an 
evaluation and report to Congress on the demonstration and 
may include the performance of research, planning, and admin-
istration, either directly, or when in the Secretary's judgment 
such activity will be carried out more effectively, more rapidly, 
or at less cost, by contract or grant; and 
(E) may use not more than 5 per centum of the funds appro-
priated for administrative or other expenses in connection with 
the demonstration. 
(f) The Secretary shall submit to the Congress— 
(1) not later than three months after the end of each fiscal 
year in which payments are made under this section, an interim 
report containing a summary of the activities carried out under 
this section during such fiscal year and any preliminary find-
ings or conclusions drawn from the demonstration program; and 
(2) not later than March 15 of the year after the end of the 
last fiscal year in which such payments are made, a final report 
containing a summary of all activities carried out under this 
section, the evaluation required in subsection (eX6XD) and any 
findings, conclusions, or recommendations for legislation drawn 
from the demonstration program. 
(g) For purposes of carrying out this section, there are authorized 
to be appropriated not to exceed $2,000,000 for each of the fiscal 
years 1984 and 1985. 
REHABIUTATION LOANS 
SEC. 124. (a) Section 312(d) of the Housing Act of 1964 is amended 
by adding the following new sentence at the end thereof: "The 
Secretary may not establish (1) any requirement that a certain 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1175 
proportion of assistance received under this section be utilized for 
any particular type of dwelling unit; or (2) any priority for the 
receipt of such assistance that is based on the receipt or use of funds 
by an applicant or area under any other program of Federal assist-
ance for housing or community development, other than the urban 
homesteading program established in section 810 of the Housing and 
Community Development Act of 1974.". 
(b) Section 312(h) of such Act is amended— 
(1) by striking out "November 30, 1983" and inserting in lieu 
thereof "September 30,1984"; and 
(2) by striking out "December 1, 1983" and inserting in lieu 
thereof "October 1,1984". 
12 use 1706e. 
Ante, p. 746. 
NEIGHBORHOOD REINVESTMENT CORPORATION 
SEC. 125. Section 608(a) of the Neighborhood Reinvestment Corpo-
ration Act is amended by striking out "title" and all that follows 
though "1982" and inserting in lieu thereof the following: "title not 
to exceed $16,512,000 for fiscal year 1984, and such sums as may be 
necessary for fiscal year 1985". 
42 use 8107. 
REPEALERS 
SEC. 126. (aXD Section 414 of the Housing and Urban Development 
Act of 1969 hereby is repealed. 
(2) Notwithstanding paragraph (1), the Secretary of Housing and 
Urban Development and the Secretary of Agriculture may dispose 
of Federal surplus real property pursuant to the terms of section 414 
of such Act if, prior to the date of the enactment of this Act, either 
Secretary had requested the Administrator of General Services to 
transfer such property for such disposition. 
(3) Notwithstanding paragraph (1), section 414(b) of such Act shall 
continue to apply, where applicable, to all property transferred by 
either Secretary pursuant to section 414 of such Act, including 
properties transferred pursuant to paragraph (2). 
(bXl) Section 106(g) of the Housing Act of 1949 hereby is repealed. 
(2) Section 703(d) of the Housing and Urban Development Act of 
1965 hereby is repealed. 
(3) Section 704, and the second sentence of section 706, of the 
Housing Act of 1961 hereby are repealed. 
TITLE II—HOUSING ASSISTANCE PROGRAMS 
40 use 484b. 
Property 
disposal. 
40 use 484b 
note. 
40 u s e 484b 
note. 
42 u s e 1456. 
42 u s e 3103. 
42 use 1500c, 
1500C-2. 
ALLOCATION AND USE OF ASSISTED HOUSING AUTHORITY 
SEC. 201. (aXD Section 213(aXl) of the Housing and Community 
Development Act of 1974 is amended by adding at the end thereof 
the following: "Upon receiving an application for such housing 
assistance, the Secretary shall assure that funds made available 
under this section shall be utilized to the maximum extent 
practicable to meet the needs and goals identified in the unit of local 
government's housing assistance plan.". 
(2) Section 213(d) of such Act is amended by striking out para-
graphs (1) and (2) and inserting in lieu thereof the following: 
"(1) The Secretary shall allocate assistance referred to in subsec-
tion (a) (other than assistance approved in appropriation Acts for 
use under sections 9, 14, and 17 of the United States Housing Act of 
42 u s e 1439. 
97 STAT. 1176 
PUBLIC LAW 98-181—NOV. 30, 1983 
42 u s e 1437g, 
1437/, post, 
p. 1196. 
42 u s e 1437f. 
Post, p. 1250. 
Report to 
eongress. 
Ante, p. 1175. 
42 u s e 1437c. 
eonversion 
approval. 
42 u s e 1437/. 
eontracts, 
contributions, 
and grants. 
Post, p. 1196. 
42 u s e 1437f. 
12 u s e 1701q. 
42 u s e 1437/. 
1937) the first time it is available for reservation on the basis of a 
formula which is contained in a regulation prescribed by the Secre-
tary, and which is based on the relative needs of different States, 
areas, and communities as reflected in data as to population, 
poverty, housing overcrowding, housing vacancies, amount of sub-
standard housing, and other objectively measurable conditions speci-
fied in such regulation. Any amounts allocated to a State or areas or 
communities within a State which are not likely to be utilized 
within a fiscal year shall not be reallocated for use in another State 
unless the Secretary determines that other areas or communities 
within the same State cannot utilize the amounts within that same 
fiscal year. 
"(2) Not later than sixty days after approval in an appropriation 
Act, the Secretary shall allocate from the amounts available for use 
in nonmetropolitan areas an amount of authority for assistance 
under section 8(d) of the United States Housing Act of 1937 deter-
mined in consultation with the Secretary of Agriculture for use in 
connection with section 532 of the Housing Act of 1949 during the 
fiscal year for which such authority is approved. The amount of 
assistance allocated to nonmetropolitan areas pursuant to this sec-
tion in any fiscal year shall not be less than 20 nor more than 25 per 
centum of the total amount of such assistance.". 
(3) Not later than March 1, 1984, the Secretary shall report to the 
Congress on the impact of the last sentence of section 213(dX2) of the 
Housing and Community Development Act of 1974. 
(b) Section 5(c) of the United States Housing Act of 1937 is 
amended— 
(1) by striking out the last sentence of paragraph (1); 
(2) by striking out paragraphs (2) and (3) and redesignating 
the remaining paragraphs accordingly; and 
(3) by adding at the end thereof the following: 
"(5) During such period as the Secretary may prescribe for start-
ing construction, the Secretary may approve the conversion of 
public housing development authority for use under section 14 or for 
use for the acquisition and rehabilitation of property to be used in 
public housing, if the public housing agency, after consultation with 
the unit of local government, certifies that such assistance would be 
more effectively used for such purpose, and if the total number of 
units assisted will not be less than 90 per centum of the units 
covered by the original reservation. 
"(6) The aggregate amount of budget authority which may be 
obligated for contracts for annual contributions and for grants 
under section 17 is increased by $9,912,928,000 on October 1, 1983, 
and by such sums as may be approved in appropriation Acts on 
October 1,1984. 
"(7XA) Using the additional budget authority provided under 
paragraph (6) and the balances of budget authority which become 
available during fiscal year 1984, to the extent approved in appropri-
ations Acts, the Secretary may reserve authority to enter into 
obligations aggregating— 
"(i) not to exceed $1,289,550,000 for public housing, of which 
not to exceed $389,550,000 shall be available for Indian housing; 
"(ii) not to exceed $1,926,400,000 for assistance under section 8 
in connection with projects developed under section 202 of the 
Housing Act of 1959; 
"(iii) not to exceed $1,550,000,000 for comprehensive improve-
ment assistance under section 14; 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1177 
"(iv) not to exceed $2,217,150,000 for assistance under section 
8(bXl); 
"(v) not to exceed $540,000,000 for assistance under section 
8(eX5); 
"(vi) not to exceed $242,115,000 for assistance under section 
8(0); 
"(vii) not to exceed $150,000,000 for assistance under section 
17 with respect to rental rehabilitation; 
"(viii) not to exceed $200,000,000 with respect to rental devel-
opment under section 17; and 
"(ix) not to exceed $1,603,170,000 for additional assistance 
under section 8. 
"(B) Using the additional budget authority provided under para-
graph (6) £ind the balances of budget authority which become 
available during fiscal year 1985, to the extent approved in appropri-
ations Acts, the Secretary may reserve authority to enter into 
obligations aggregating— 
"(i) not to exceed such sums as may be approved in an 
appropriation Act for public housing, of which not to exceed 
such sums as may be approved in an appropriation Act shall be 
available for Indian housing; 
"(ii) not to exceed such sums as may be approved in an 
appropriation Act for assistance under section 8 in connection 
with projects developed under section 202 of the Housing Act of 
1959; 
"(iii) not to exceed such sums as may be approved in an 
appropriation Act for comprehensive improvement assistance 
under section 14; 
"(iv) not to exceed such sums as may be approved in an 
appropriation Act for assistance under section 8(bXl); 
'(v) not to exceed such sums as may be approved in an 
appropriation Act for assistance under section 8(eX5); 
'(vi) not to exceed such sums as may be approved in an 
appropriation Act for assistance under section 8(o); 
(vii) not to exceed $150,000,000 for assistance under section 
17 with respect to rental rehabilitation; 
"(viii) not to exceed $115,000,000 with respect to rental devel-
opment under section 17; and 
"(ix) not to exceed such sums as may be approved in an 
appropriation Act for additional assist£uice under section 8. 
"(C) The specific authorities under this paragraph are subject to 
such adjustments as may be made under paragraph (5).". 
(c) Section 6 of such Act is amended by adding at the end thereof 
the following: 
"(h) On or after October 1, 1983, the Secretary may enter into a 
contract involving new construction only if the public housing 
agency demonstrates to the satisfaction of the Secretary that the 
cost of new construction is less than the cost of acquisition or 
acquisition and rehabilitation, including any reserve fund under 
subsection (i), would be. 
"(i) The Secretary may, upon application by a public housing 
agency in connection with the acquisition of housing for use as 
public housing, establish and set aside a reserve fund in an amount 
not to exceed 30 per centum of the acquisition cost which shall be 
available for use for major repairs to such housing. 
"(j) On or after October 1, 1983, in entering into commitments for 
the development of public housing, the Secretary shall give a prior-
42 u s e 1437f. 
Post, p. 1183. 
Post, p. 1181. 
Post, p. 1196. 
42 u s e 1437f. 
12 use 1701q. 
42 use 1437Z. 
42 u s e 1437f. 
Post, p. 1183. 
Post, p. 1181. 
Post, p. 1196. 
42 u s e 1437f. 
42 u s e 1437d. 
eontract. 
eosts. 
Reserve fund. 
Large-family 
housing. 
97 STAT. 1178 
PUBLIC LAW 98-181—NOV. 30, 1983 
ity to projects for the construction of housing suitable for occupancy 
by large families.". 
INCREASE IN SINGLE PERSON OCCUPANCY UMITATION 
42 use 1437a. 
SEC. 202. Section 3(b)(3) of the United States Housing Act of 1937 
is amended by adding at the end thereof the following new sentence: 
"The Secretary may increase the limitation described in the second 
sentence of this paragraph to not more than 30 per centum if, 
following consultation with the public housing agency involved, the 
Secretary determines that the dwelling units involved are neither 
being occupied, nor are likely to be occupied within the next 12 
months, by families or persons described in clauses (A), (B), and (C), 
due to the condition or location of such dwelling units, and that such 
dwelling units may be occupied if made available to single persons 
described in clause (D).". 
PRIORITY FOR HOUSING ASSISTANCE 
SEC. 203. (a) Section 6(cX4XA) of the United States Housing Act of 
42 use 1437d. 
1937 is amended by inserting "or are paying more than 50 per 
centum of family income for rent" after "under this Act". 
42 use 1437f. 
(b)(1) Section 8(dXlXA) of such Act is amended by inserting ", are 
paying more than 50 per centum of family income for rent," after 
'substandard housing . 
Post, p. 1183. 
(2) Section 8(e)(2) of such Act is amended by inserting ", are 
paying more than 50 per centum of family income for rent," after 
substandard housing . 
(3) Section 101(e)(1)(B) of the Housing and Urban Development 
12 use 1701s. 
Act of 1965 is amended by inserting ", was paying more than 50 per 
centum of family income for rent," after "substandard housing". 
LEASE AND GRIEVANCE PROCEDURES 
Ante, p. 1177. 
SEC. 204. Section 6 of the United States Housing Act of 1937 is 
amended by adding at the end thereof the following new 
subsections: 
Regulations. 
"(k) The Secretary shall by regulation require each public housing 
agency receiving assistance under this Act to establish and imple-
ment an administrative grievance procedure under which tenants 
will— 
"(1) be advised of the specific grounds of any proposed adverse 
public housing agency action; 
"(2) have an opportunity for a hearing before an impartial 
party upon timely request within any period applicable under 
subsection (1); 
"(3) have an opportunity to examine any documents or 
records or regulations related to the proposed action; 
"(4) be entitled to be represented by another person of his 
choice at any hearing; 
"(5) be entitled to ask questions of witnesses and have others 
make statements on his behalf; and 
"(6) be entitled to receive a written decision by the public 
housing agency on the proposed action. 
An agency may exclude from its procedure any grievance concern-
ing an eviction or termination of tenancv in any jurisdiction which 
requires that, prior to eviction, a tenant be given a hearing in court 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1179 
which the Secretary determines provides the basic elements of due 
process. 
"(1) Each public housing agency shall utilize leases which— 
"(1) do not contain unreasonable terms and conditions; 
"(2) obligate the public housing agency to maintain the 
project in a decent, safe, and sanitary condition; 
"(3) require the public housing agency to give adequate writ-
ten notice of termination of the lease which shall not be less 
than— 
"(A) a reasonable time, but not to exceed 30 days, when 
the he£dth or safety of other tenants or public housing 
agency employees is threatened; 
"(B) 14 days in the case of nonpajonent of rent; and 
"(C) 30 days in any other case; and 
"(4) require that the public housing agency may not terminate 
the tenancy except for serious or repeated violation of the terms 
or conditions of the lease or for other good cause.". 
Leases. 
REPORTING REQUIREMENTS 
SEC. 205. Section 6 of the United States Housing Act of 1937 is 
amended by adding at the end thereof the following: 
"(m) The Secretary shall not impose any unnecessarily duplicative 
or burdensome reporting requirements on tenants or public hearing 
agencies assisted under this Act.". 
Ante, p. 1178. 
42 u s e 1437d. 
AMENDMENTS AFFECTING TENANT RENTS OR CONTRIBUTIONS 
SEC. 206. (a) Section 3(a) of the United States Housing Act of 1937 
is amended— 
(1) by inserting the following immediately after the first 
sentence: "Reviews of family income shall be made at least 
annually."; and 
(2) by inserting after "under this Act" in the final sentence 
the following: "(other than a family assisted under section 
8(0))". 
(b) Section 3(b) of such Act is cunended by striking out the period 
at the end of paragraph (2) and inserting in lieu thereof the follow-
ing: ", except that the Secretary may establish income ceilings 
higher or lower than 50 per centum of the median for the area on 
the basis of the Secretary's findings that such variations are neces-
sary because of unusually high or low family incomes.". 
(c) Section 3(bX5) of the United States Housing Act of 1937 is 
amended to read as follows: 
"(5) The term 'adjusted income' means the income which remains 
after excluding— 
"(A) $480 for each member of the family residing in the 
household (other than the head of the household or his 
spouse) who is under 18 years of age or who is 18 years of 
age or older and is disabled or handicapped or a full-time 
student; 
"(B) $400 for any elderly family; 
"(C) medical expenses in excess of 3 per centum of annual 
family income for any elderly family; and 
"(D) child care expenses to the extent necessary to enable 
another member of the family to be employed or to further 
his or her education.". 
42 u s e 1437a. 
Post, p. 1181. 
Income ceilings. 
42 u s e 1437a. 
"Adjusted 
97 STAT. 1180 
PUBLIC LAW 98-181—NOV. 30, 1983 
42 use 1437a 
note. 
95 Stat. 400. 
Increases. 
Increases. 
Increases. 
42 use 1490a. 
42 u s e 1437f. 
Conversion and 
increase. 
79 Stat. 451. 
12 use 1715Z-1. 
42 use 5301 
note. 
42 use 1437f. 
(dXD The following provisions of this paragraph apply to determi-
nations of the rent to be paid by or the contribution required of a 
tenant occup5dng housing assisted under the authorities amended by 
this section or subsections (a) through (h) of section 322 of the 
Housing and Community Development Amendments of 1981 (here-
inafter referred to as "assisted housing") on or before the effective 
date of regulations implementing this section: 
(A) Notwithstanding any other provision of this section or 
subsections (a) through (h) of section 322 of the Housing and 
Community Development Amendments of 1981, the Secretary of 
Housing and Urban Development (hereinafter referred to as the 
"Secretary") may provide for delayed applicability, or for staged 
implementation, of the procedures for determining rents or 
contributions, as appropriate, required by such provisions if the 
Secretary determines that immediate application of such proce-
dures would be impracticable, would violate the terms of exist-
ing leases, or would result in extraordinary hardship for any 
class of tenants. 
(B) The Secretary shall provide that the rent or contribution, 
as appropriate, required to be paid by a tenant shall not 
increase as a result of the amendments made by this section and 
subsections (a) through (h) of section 322 of the Housing and 
Community Development Amendments of 1981, and as a result 
of any other provision of Federal law or regulation, by more 
than 10 per centum during any twelve-month period, unless the 
increase above 10 per centum is attributable to increases in 
income which are unrelated to such amendments, law, or 
regulation. 
(2) Tenants of assisted housing other than those referred to in 
paragraph (1) shall be subject to immediate rent payment or contri-
bution determinations in accordance with applicable law and with-
out regard to the provisions of paragraph (1), but the Secretary shall 
provide that the rent or contribution payable by any such tenant 
who is occup3dng assisted housing on the effective date of any 
provision of Federal law or regulation shall not increase, as a result 
of any such provision of Federal law or regulation, by more than 10 
per centum during any twelve-month period, unless the increase 
above 10 per centum is attributable to increases in income which are 
unrelated to such law or regulation. 
(3) In the case of tenants receiving rental assistance under section 
521(aXl) of the Housing Act of 1949 on the effective date of this 
section whose assistance is converted to assistance under section 8 of 
the United States Housing Act of 1937 on or after such date, the 
Secretary shall provide that the rent or contribution payable by any 
such tenant shall not increase, as a result of such conversion, by 
more than 10 per centum during any twelve-month period, unless 
the increase above 10 per centum is attributable to increases in 
income which are unrelated to such conversion or to any provision 
of Federal law or regulation. 
(4XA) Notwithstanding any other provision of law, in the case of 
the conversion of any assistance under section 101 of the Housing 
and Urban Development Act of 1965, section 236(fK2) of the National 
Housing Act, or section 23 of the United States Housing Act of 1937 
(as in effect before the date of the enactment of the Housing and 
Community Development Act of 1974) to assistance under section 8 
of the United States Housing Act of 1937, any increase in rem 
pajmnents or contributions resulting from such conversion, and from 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1181 
the amendments made by this section of any tenant benefiting from 
such assistance who is sixty-two years of age or older may not exceed 
10 per centum per annum. 
(B) In the case of any such conversion of assistance occurring on or 
after OkJtober 1, 1981, and before the date of the enactment of this 
section, the rental payments due after such date of enactment by 
any tenant benefiting from such assistance who was sixty-two vears 
of age or older on the date of such conversion shall be computed as if 
the teneint's rental pa3rment or contribution had, on the date of 
conversion, been the lesser of the actual rental pajrment or contribu-
tion required, or 25 per centum of the tenant's income. 
(5) The limitations on increases in rent contained in paragraphs 
(IXB), (2), (3), and (4) shall remain in effect and mav not be changed 
or superseded except by another provision of law wnich amends this 
subsection. 
(6) As used in this subsection, the term "contribution" means an 
amount representing 30 per centum of a tenant's monthly adjusted 
income, 10 per centum of the tenant's monthly income, or the 
designated amount of welfare assistance, whichever amount is used 
to determine the monthly assistance payment for the tenant under 
section 3(a) of the United States Housing Act of 1937. 
(7) The provisions of subsections (a) through (h) of section 322 of 
the Housing and Community Development Amendments of 1981 
shall be implemented and fully applicable to all affected tenants no 
later than five years following the date of enactment of such amend-
ments, except that the Secretary may extend the time for implemen-
tation if the Secretary determines that full implementation would 
result in extraordinary hardship for any class of tenants. 
(e) Section 322(i) of the Omnibus Budget Reconciliation Act of 1981 
is repealed. 
VOUCHER DEMONSTRATION 
SEC. 207. Section 8 of the United States Housmg Act of 1937 is 
amended by adding at the end thereof the following: 
"(oXD In connection with the rental rehabilitation and develop-
ment program under section 17 or the rural housing preservation 
grant program under section 533 of the Housing Act of 1949, or for 
other purposes, the Secretary is authorized to conduct a demonstra-
tion program using a pajrment standard in accordance with this 
subsection. The payment standard shall be used to determine the 
monthly assistance which may be paid for any family, as provided in 
paragraph (2) of this subsection, and shall be based on the fair 
market rental established under subsection (c). 
"(2) The monthly assistance pajnnent for any family shall be the 
amount by which the payment standard for the area exceeds 30 per 
centum of the family's monthly adjusted income, except that such 
monthly assistance payment shall not exceed the amount by which 
the rent for the dwelling unit (including the amount allowed for 
utilities in the case of a unit with separate utility metering) exceeds 
10 per centum of the family's monthly income. 
' (3) Assistance pajrments may be made only for (A) a family 
determined to be a very low-income family at the time it initially 
receives assistance, or (B) a family previously assisted under this 
Act. In selecting families to be assisted, preference shall be given to 
families which, at the time they are seeking assistance, occupy 
substandard housing, are involuntarily displaced, or are pajring 
more than 50 per centum of family income for rent. 
Conversion. 
Increase 
limitations. 
"Contribution.' 
Ante, p. 1179. 
95 Stat. 400. 
42 u s e 1437a 
note. 
42 u s e 1437f. 
Post, p. 1183. 
Payment 
standard. 
Post, p. 1196. 
Post, p. 1250. 
Monthly 
assistance 
payment. 
97 STAT. 1182 
PUBLIC LAW 98-181—NOV. 30, 1983 
Housing quality 
standards. 
"(4) The Secretary shall use substantially all of the authority to 
enter into contracts under this subsection to make assistance pay-
ments for families residing in dwellings to be rehabilitated with 
Post, p. 1196. 
assistance under section 17 and for families displaced as a result of 
rental housing development assisted under such section or as a 
Post, p. 1250. 
result of activities assisted under section 533 of the Housing Act of 
1949. 
"(5) If a family vacates a dwelling unit before the expiration of a 
lease term, no assistance payment may be made with respect to the 
unit after the month during which the unit was vacated. 
"(6) A contract with a public housing agency for annual contribu-
tions under this subsection shall be for an initial term of sixty 
months. The Secretary shall require (with respect to any unit) that 
(A) the public housing agency inspect the unit before any assistance 
pa3anent may be made to determine that it meets housing quality 
standards for decent, safe, and sanitary housing established by the 
Secretary for the purpose of this section, and (B) the public housing 
agency make annual or more frequent inspections during the con-
tract term. No assistance payment may be made for a dwelling unit 
which fails to meet such quality standards, unless any such failure 
is promptlv corrected by the owner and the correction verified by 
the public housing agency. 
Payment 
"(7XA) The amount of assistance pa3rments under this subsection 
adjustments. 
may, in the discretion of the public housing agency, be adjusted as 
frequently as twice during any five-year period where necessary to 
assure continued affordability. The aggregate amount of adjust-
ments pursuant to the preceding sentence may not exceed the 
amount of any excess of the annual contributions provided for in the 
contract over the amount of assistance payments actually paid 
(including amounts which otherwise become available during the 
contract period). 
"(B) For the purpose of subparagraph (A), each contract with a 
public housing agency for annual contributions under this subsec-
tion shall provide annual contributions equal to 115 per centum of 
the estimated aggregate amount of assistance required during the 
first year of the contract. 
"(C) Any amounts not needed for adjustments under subpara-
graph (A) may be used to provide assistance payments for additional 
families. 
"(D) Before making such adjustments the public housing agency 
shall consult with the public and the general local government 
regarding the impact of such adjustments on the number of families 
that can be assisted. 
"(8) A public housing agency may utilize not to exceed 5 per 
centum of the amount of authority available under this subsection 
to provide assistance with respect to cooperative or mutual housing 
wmch has a resale structure which maintains affordability for lower 
income families where the agency determines such action will assist 
in maintaining the affordability of such housing for such families.". 
RENEWAL OF SECTION 8 CONTRACTS 
42 use I437f. 
SEC. 208. Section 8(dX2) of such Act is amended by adding at the 
end thereof the following: "A contract under this section may not be 
attached to the structure except where the Secretary specifically 
waives the foregoing limitation and the public housing agency 
approves such action, and the owner agrees to rehabilitate the 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1183 
structure other than with assistance under this Act and otherwise 
complies with the requirements of this section. The aggregate term 
of such contract and any contract extension may not be more than 
180 months.". 
REPEAL OF NEW CONSTRUCTION AUTHORITY 
SEC. 209. (a) The United States Housing Act of 1937 is amended as 
follows: 
(1) Section 8(a) is amended by striking out ", newly con-
structed, and substantially rehabilitated". 
(2) Section 8(bX2) is repealed. 
(3) Section 8(e) of such Act is amended by striking out para-
graphs (1), (2), £md (3) and by redesignating paragraphs (4) and 
(5) as paragraphs (1) and (2), respectively. 
(4) Section 8(i) of such Act is repealed. 
(5) Section 8 of such Act is amended by striking out subsec-
tions (1) and (m). 
(6) Section 8(n) of such Act is amended by striking out "(eX5) 
and subsection (i)" and inserting in lieu thereof "(eX2)". 
(b) The amendments made by subsection (a) shall take effect on 
October 1, 1983, except that the provisions repealed shall remain in 
effect— 
(1) with respect to any funds obligated for a viable project 
under section 8 of the United States Housing Act of 1937 prior 
to January 1,1984; and 
(2) with respect to any project financed under section 202 of 
the Housing Act of 1959. 
42 u s e 1437f. 
Effective date. 
42 u s e 1437f 
note. 
42 u s e 1437f. 
12 u s e 1701q. 
SINGLE ROOM OCCUPANCY HOUSING 
SEC. 210. Section 8(n) of the United States Housing Act of 1937 is 
42 use I437f. 
amended— 
(1) by inserting "subsection (bXD," before "subsection (eX5)"; 
(2) by inserting a comma after "(eX5)"; 
(3) by striking out "and" at the end of paragraph (1); 
(4) by striking out the period at the end of paragraph (2) and 
inserting in lieu thereof ; and"; and 
(5) by inserting after paragraph (2) the following new 
eertification. 
paragraph: 
"(3) in the case of assistance under subsection (bXD, the unit 
of general local government in which the property is located 
and the local public housing agency certify to the Secretary that 
the property complies vdth local health and safety standards.". 
SHARED HOUSING FOR THE ELDERLY AND HANDICAPPED 
SEC. 211. Section 8 of the United States Housing Act of 1937 is 
amended by adding the following new subsection at the end thereof: 
"(p) In order to assist elderly families (as defined in section 3(bX3)) 
who elect to live in a shared housing arrangement in which they 
benefit as a result of sharing the facilities of a dwelling with others 
in a manner that effectively and efficiently meets their housing 
needs and thereby reduces their cost of housing, the Secretary shall 
permit assistance provided under the existing housing and moderate 
rehabilitation programs to be used by such families in such arrange-
ments. In carrying out this subsection, the Secretary shall issue 
42 u s e 1437f. 
Ante, p. 1178. 
Minimum 
habitability 
standards. 
97 STAT. 1184 
PUBLIC LAW 98-181—NOV. 30, 1983 
minimum habitability standards for the purpose of assuring decent, 
safe, and sanitary housing for such families while taking into 
account the special circumstances of shared housing.". 
PAYMENTS FOR OPERATION OF LOWER INCOME HOUSING PROJECTS 
42 use I437g. 
SEC. 212. Section 9(c) of the United States Housing Act of 1937 is 
amended— 
(1) by striking out "and" after "October 1,1980,"; and 
(2) by inserting before the period at the end thereof the 
following: ", not to exceed $1,500,000,000 on or after October 1, 
1983, and by such sums as may be necessary on or after October 
1,1984,". 
INCOME EUGIBIUTY 
42 use I437n. 
SEC. 213. Section 16(a) of the United States Housing Act of 1937 is 
amended by striking out "10 per centum" and inserting in lieu 
thereof "25 per centum". 
DEMOLITION A N D DISPOSITION OP PUBUC HOUSING 
SEC. 214. (a) The United States Housing Act of 1937 is amended by 
adding the following new section at the end thereof: 
"DEMOLITION A N D DISPOSITION OF PUBUC HOUSING 
Application 
"SEC. 18. (a) The Secretary may not approve an application by a 
4^^8^1437 
public housing agency for permission, with or without financial 
^' 
assistance under this Act, to demolish or dispose of a public housing 
project or a portion of a public housing project unless the Secretary 
has determined that— 
"(1) in the case of an application proposing demolition of a 
public housing project or a portion of a public housing project, 
the project or portion of the project is obsolete as to physical 
condition, location, or other factors, making it unusable for 
housing purposes, or no reasonable program of modifications is 
feasible to return the project or portion of the project to useful 
life; or in the case of an application proposing the demolition of 
only a portion of a project, the demolition will help to assure the 
useful life of the remaining portion of the project; or 
"(2) in the case of an application proposing disposition of real 
property of a public housing agency by sale or other transfer— 
"(AXi) the property's retention is not in the best interests 
of the tenants or the public housing agency because devel-
opmental changes in the area surrounding the project 
adversely affect the health or safety of the tenants or the 
feasible operation of the project by the public housing 
agency, because disposition allows the acquisition, develop-
ment, or rehabilitation of other properties which will be 
more efficiently or effectively operated as lower income 
housing projects and which will preserve the total amount 
of lower income housing stock available in the community, 
or because of other factors which the Secretary determines 
are consistent with the best interests of the tenants and 
public housing agency and which are jiot inconsistent with 
other provisions of this Act; and 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1185 
"(ii) for property other than dwelling units, the property 
is excess to the needs of a project or the disposition is 
incidental to, or does not interfere with, continued oper-
ation of a project; and 
"(B) the net proceeds of the disposition will be used for (i) 
the payment of development cost for the project and for the 
retirement of outstanding obligations issued to finance 
original development or modernization of the project, and 
(ii) to the extent that any proceeds remciin after the applica-
tion of proceeds in accordance with clause (i), the provision 
of housing assistance for lower income families through 
such measures as modernization of lower income housing, 
or the acquisition, development, or rehabilitation of other 
properties to operate as lower income housing. 
"(b) The Secretary may not approve an application or furnish 
assistance under this section under this Act unless— 
"(1) the application from the public housing agency has been 
developed in consultation with tenants and tenant councils, if 
any, who will be affected by the demolition or disposition and 
contains a certification by appropriate local government offi-
cisils that the proposed activity is consistent with the applicable 
housing assistance plan; and 
"(2) all tenants to be displaced as a result of the demolition or 
disposition will be given assistance by the public housing agency 
and are relocated to other decent, safe, sanitary, and affordable 
housing, which is, to the maximum extent practicable, housing 
of their choice, including hoiising assisted under section 8 of this 
Act. 
"(c) Notwithstanding any other provision of law, the Secretary is 
authorized to make available financial assistance for applications 
approved under this section using available annual contributions 
authorized under section 5(c). 
"(d) The provisions of this section shall not apply to the convey-
ance of unite in a public housing project for the purpose of providing 
homeownership opportunities for lower income families capable of 
assuming the responsibilities of homeownership.". 
(b) Section 6(f) and section 14(f) of such Act are repealed. 
FINANCING UMITATIONS 
SEC. 215. The United States Housing Act of 1937 is amended by 
adding at the end thereof the following: 
Proceeds. 
42 use 1437f. 
Ante, p. 1176. 
42 use 1437d, 
1437/. 
FINANCING UMITATIONS 
'SEC. 19. On and after October 1,1983, the Secretarv— 
Contracts. 
"(1) may only enter into contracts for annual contributions 
42 USe 1437q. 
regarding obligations financing public housing projects author-
ized by section 5(c) if such obligations are exempt from taxation 
-^"^ P- ^'^^_• 
under section 11(b), or if such obligations are issued under 
42 USC 14371. 
section 4 and such obligations are exempt from taxation; and 
42 USe 1437b. 
"(2) may not enter into contracts for periodic payments to the 
Federal Financing Bank to offset the costs to the Bank of 
purchasing obligations (as described in the first sentence of 
section 16(b) of the Federal Financing Bank Act of 1973) issued 
12 USe 2294. 
by local public housing agencies for purposes of financing public 
housing projects authorized by section 5(c) of this Act.". 
1 1 - 1 9 4 O - 85 — 
39 
QL 3 
97 STAT. 1186 
PUBLIC LAW 98-181—NOV. 30, 1983 
Grants. 
42 u s e 5305. 
Families and 
single women. 
EMERGENCY SHELTER PROGRAM 
SEC. 216. There are authorized to be appropriated not to exceed 
$60,000,000 for fiscal year 1984 for the Secretary to make grants to 
States, units of general local government, and Indian tribes, and 
nonprofit organizations which will operate programs on behalf of 
such units of general local government and Indian tribes, for the 
provision of shelter and essential services for individuals who are 
subject to life-threatening situations because of their lack of hous-
ing. Such grants shall be awarded on the basis of the extent of the 
need for emergency housing in the area where the project is, or will 
be, located, taking into account regional variations in the cost of 
providing shelter. Such grants may be used to rehabilitate existing 
structures in order to provide basic shelter, to maintain structures 
providing such shelter, to pay for utilities and the furnishing of such 
shelters, to provide for any health and safety measures that are 
required to protect the individuals using such shelter, and for any 
activity described in section 105(a) of the Housing and Community 
Development Act of 1974 that is consistent with the purposes of this 
paragraph. A structure which is rehabilitated with assistance under 
this paragraph shall be used for emergency housing for a period of 
not less than 3 years after such rehabilitation. In providing grants 
under this paragraph, the Secretary shall take into consideration 
the special needs of families and single women. 
12 use 
1715z-la. 
42 u s e 1437f. 
12 u s e 1715Z-1. 
12 u s e 1701s; 42 
u s e 1451. 
12 u s e 1715Z-1. 
OPERATING ASSISTANCE FOR TROUBLED MULTIFAMILY HOUSING 
PROJECTS 
SEC. 217. (aXD Section 201(a) of the Housing and Community 
Development Amendments of 1978 is amended by inserting before 
the period at the end thereof the following: ", without regard to 
whether such projects are insured under the National Housing Act". 
(2) Section 201(b) of such Act is amended by inserting before the 
period at the end thereof the following: ", without regard to whether 
such projects are insured under the National Housing Act". 
(3) Section 201(cXlXA) of such Act is amended by striking out the 
first semicolon and all that follows through "1979". 
(bXD Section 201(a) of such Act is amended by striking out "or 
under" and inserting in lieu thereof ", the United States Housing 
Act of 1937, or". 
(2) Section 201(cXl) of such Act is amended— 
(A) by striking out "or" at the end of subparagraph (A); 
(B) by redesignating subparagraph (B) as subparagraph (C); 
and 
(C) by inserting after subparagraph (A) the following new 
subparagraph: 
"(B) is assisted under section 8 of the United States Housing 
Act of 1937 following conversion to such assistance from assist-
ance under section 236 of the National Housing Act or section 
101 of the Housing and Urban Development Act of 1965; or", 
(c) Section 236(fK3) of the National Housing Act is amended by 
striking out "September 30, 1982" and inserting in lieu thereof 
"September 30,1985". 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1187 
Ante, p. 1176. 
Contracts and 
payments. 
42 u s e 1437f. 
SECTION 236 ASSISTANCE 
SEC. 218. (a) Section 236(f) of the National Housing Act is amended 
12 USC 1715z-l. 
by adding at the end thereof the following: 
"(4) To ensure that eligible tenants occupying that number of 
Contracts and 
units with respect to which assistance was being provided under this 
payments, 
subsection immediately prior to the date of enactment of this sen-
tence receive the benefit of assistance contracted for under para-
graph (2), the. Secretary shall offer annually to amend contracts 
entered into under this subsection with owners of projects assisted 
but not subject to mortgages insured under this section to provide 
sufficient payments to cover up to 90 per centum of the necessary 
rent increases and changes in the incomes of eligible tenants, 
subject to the availability of authority for such purpose under 
section 5(c) of the United States Housing Act of 1937. The Secretary 
shall take such actions as may be necessary to ensure that pay-
ments, including pajnnents that reflect necessary rent increases and 
changes in the incomes of tenants, are made on a timely basis for all 
units covered by contracts entered into under paragraph (2).". 
(b) Section 236(iXl) of such Act is amended by adding at the end 
thereof the following new sentence: "The Secretary shall utilize, to 
the extent necessary after September 30, 1984, any authority under 
this section that is recaptured either as the result of the conversion 
of housing projects covered by assistance under subsection (fX2) to 
contracts for assistance under section 8 of the United States Hous-
ing Act of 1937 or otherwise for the purpose of making assistance 
payments, including amendments as provided in subsection (h), with 
respect to housing projects assisted, but not subject to mortgages 
insured, under this section that remain covered by assistance under 
subsection (fK2).". 
RENT SUPPLEMENT PROGRAM 
SEC. 219. (a) Section 101(g) of the Housing and Urban Development 
Act of 1965 is amended by adding at the end thereof the following: 
"To ensure that qualified tenants occupying that number of unite 
with respect to which assistance was being provided under this 
section immediately prior to the date of enactment of this sentence 
receive the benefit of assistance contracted for under this section, 
the Secretary shall offer annually to amend contracte entered into 
with owners of projects assisted under this section but not subject to 
mortgages insured under title II of the National Housing Act to 
12 USC 1707. 
provide sufficient paymente to cover up to 90 per centum of the 
necessary rent increases and changes in the incomes of qualified 
tenants, subject to the availability of authority for such purpose 
under section 5(c) of the United States Housing Act of 1937. The 
^^te, p. 1176. 
Secretary shall take such actions as may be necessary to ensure that 
paymente, including paymente that reflect necessary rent increases 
and changes in the incomes of tenants, are made on a timely basis 
for all unite covered by contracte entered into under this section.". 
(b) Section 101(1) of such Act is amended by adding at the end 
Payments, 
thereof the following new sentence: "The Secretary shall utilize, to 
the extent necessary after September 30, 1984, any authority under 
this section that is recaptured either as the result of the conversion 
of housing projecte covered by assistance under this section to 
contracts for assistance under section 8 of the United States Hous-
ing Act of 1937 or otherwise (1) for the purpose of making assistance 
42 USC 1437f. 
paymente, including amendmente as provided in subsection (g), with 
Contracts and 
payments. 
12 USC 1701s. 
97 STAT. 1188 
PUBLIC LAW 98-181—NOV. 30, 1983 
12 u s e 1701. 
12 u s e 1715Z-1. 
respect to housing projects assisted under this section, but not 
subject to mortgages insured under the National Housing Act, that 
remain covered by assistance under this section; and (2) if not 
required to provide assistance under this section, and notwithstand-
ing any other provision of law, for the purpose of contracting for 
assistance payments under section 236(£K2) of the National Housing 
Act.". 
Transmittal to 
eongress. 
42 u s e 1437f. 
42 u s e 5301. 
REPORT REGARDING HOUSING NEIGHBORHOOD STRATEGY AREA 
PROGRAM 
SEC. 220. Not later than the expiration of the one hundred twenty-
day period following the date of the enactment of this Act, the 
Secretary shall transmit to the Congress a report with respect to the 
program established by the Secretary to provide assistance under 
section 8 of the United States Housing Act of 1937 to units of 
general local government in areas where concentrated housing and 
community development block-grant assisted physical development 
and public service activities are conducted under title I of the 
Housing and Community Development Act of 1974. Such report 
shall include the following information for each unit of general local 
government selected to participate in such program: 
(1) the total number of dwelling units located in such unit of 
general local government that have been initially reserved by 
the Secretary for assistance under such program, and any 
subsequent revision of such number; 
(2) the total amount of funds pledged by such unit of general 
local government for all public improvements and services, and 
actual and future expenditures, in connection with such 
program; 
(3) the status of the dwelling units located in such unit of 
general local government that have been initially reserved by 
the Secretary for assistance under such program, including the 
number of units completed and occupied; 
(4) the total number of dwelling units required to complete 
each local program, as estimated by such unit of general local 
government; and 
(5) the total number of local programs considered completed 
by such unit of general local government. 
42 u s e 602 note. 
42 u s e 601. 
42 u s e 1437 
note. 
12 u s e 1715Z-1. 
12 u s e 1701Z-6 
note. 
CONSIDERATION OF UTIUTY PAYMENTS MADE BY TENANTS IN ASSISTED 
HOUSING 
SEC. 221. Notwithstanding any other provision of law, for purposes 
of determining eligibility, or the amount of benefits payable, under 
chapter A of title IV of the Social Security Act, any utility payment, 
up to the utility allowance, made by a person living in a dwelling 
unit in a lower income housing project assisted under the United 
States Housing Act of 1937 or section 236 of the National Housing 
Act shall be considered to be a rental payment. 
PUBUC HOUSING CHILD CARE DEMONSTRATION PROGRAM 
SEC. 222. (a) The Secretary of Housing and Urban Development 
(hereinafter referred to as the "Secretary") shall carry out a demon-
stration program to determine the feasibility of using public housing 
facilities in the provision of child care services for lower income 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1189 
families who reside in public housing. The Secretary shall design 
such program to determine the extent to which the availability of 
child care services in lower income housing projects facilitates the 
employability of the heads of such families and their spouses. 
(b) To carry out the demonstration under this section, the Secre-
tary shall authorize the use of public housing agency facilities 
located in areas where— 
(1) the units of general local government have indicated that 
funds under title I of the Housing and Community Development 
Act of 1974 will be made available to make minor renovations to 
the facilities to make them suitable for use as child care facili-
ties, and to support child care services in such facilities; 
(2) the public housing agency does not have a child care 
services program in operation prior to the demonstration pro-
gram under this section; 
(3) the proposed child care services program will serve pre-
school children during the day, elementary school children after 
school, or both, in order to permit eligible persons who head the 
families of such children to obtain, retain, or train for 
emplojrment; 
(4) the proposed child care services program of such public 
housing agency is designed, to the extent practicable, to involve 
the participation of the parents of children benefiting from such 
program, and to employ in part-time positions elderly individ-
uals who reside in the lower income housing project involved; 
and 
(5) the proposed child care services program of such public 
housing agency will comply with all applicable State and local 
laws, regulations, and ordinances. 
(c) The Secretary shall conduct periodic evaluations of each child 
care services demonstration carried out under this section for pur-
poses of determining the effectiveness of such demonstration in 
providing child care services and permitting eligible persons who 
head lower income families and their spouses residing in public 
housing to obtain, retain, or train for employment. 
(d) Nothing in this section may be construed as authorizing the 
Secretary to establish any health, safety, educational, or other 
standards with respect to child care services or facilities assisted 
with grants received under this section. 
(e) Not later than the expiration of the two-year period following 
the date of enactment of this Act, the Secretary shall prepare and 
submit to the Congress a detailed report setting forth the findings 
and conclusions of the Secretary as a result of carrying out the 
demonstration program established in this section. Such report shall 
include any recommendations of the Secretary with respect to the 
establishment of a permanent program of using public housing 
facilities to be used in providing child care services in lower income 
housing projects. 
42 u s e 5301. 
Evaluations. 
Report to 
Congress. 
Recommend-
ations. 
HOUSING FOR THE ELDERLY AND HANDICAPPED 
SEC. 223. (aXD Section 202(aX3) of the Housing Act of 1959 is 
amended by inserting the following before the period at the end 
thereof: ", except that such interest rate plus such allowance shall 
not exceed 9.25 per centum per annum". 
12 use ITOlq. 
97 STAT. 1190 
PUBLIC LAW 98-181—NOV. 30, 1983 
12 u s e 1701q 
note. 
12 u s e ITOlq. 
Efficiency units. 
Per unit cost 
limitations. 
Prepayment and 
transfer. 
(2) The amendment made by paragraph (1) shall apply only with 
respect to loan agreements entered into after September 30, 1982, 
and prior to October 1,1984. 
(b) Section 202(aX4XBXi) of such Act is amended— 
(1) by striking out "and" after "1980," in the first sentence; 
and 
(2) by inserting ", to $6,400,000,000 on October 1, 1983, and to 
such sum as may be approved in an appropriation Act on 
October 1,1985," after "1981". 
(c) Section 202(aX4XC) of such Act is amended by striking out 
"$850,848,000" and "1982" in the second sentence and inserting in 
lieu thereof "$666,400,000" and "1984", respectively. 
(d) Section 202(h) of such Act is amended— 
(1) by striking out "1978" and inserting in lieu thereof "1983"; 
(2) by inserting before the period at the end of the first 
sentence the following: ", and persons described in subpara-
graphs (B) and (C) of subsection (dX4) who have been released 
from residential health treatment facilities"; 
(3] in paragraph (1), by striking out "handicapped persons" 
and'inserting in lieu thereof "persons dpscribed in the first 
sentence of this subsection"; 
(4) in paragraph (2), by striking out "handicapped persons" 
and inserting in lieu thereof "persons described in the first 
sentence of this subsection who are"; 
(5) in paragraph (1), by striking out "and" at the end thereof; 
(6) in paragraph (2), by striking out the period at the end 
thereof and inserting in lieu thereof "; and". 
(e) Section 202 of such Act is amended by adding at the end 
thereof the following new subsections: 
"(iXD Unless otherwise requested by the sponsor, a maximum of 
25 per centum of the units in a project financed under this section 
may be efficiency units, subject to a determination by the Secretary 
that such units are appropriate for the elderly or handicapped 
population residing in the vicinity of such project or to be served by 
such project. 
"(2) The Secretary may require a sponsor of a housing project 
financed with a loan under this section to deposit an amount not to 
exceed $10,000 in a special escrow account to assure the commit-
ment and long-term management capabilities of such sponsor. 
"(3) In establishing per unit cost limitations for purposes of this 
section, the Secretary shall take into account design features neces-
sary to meet the needs of elderly and handicapped residents, and 
such limitations shall reflect the cost of providing such features. The 
Secretary shall adjust the per unit cost limitations in effect on 
January 1, 1983, not less than once annually to reflect changes in 
the general level of construction costs. 
"(jXD The Secretary may not approve the prepayment of any loan 
made under this section, or transfer such loan, unless such prepay-
ment or transfer is made as part of a transaction that will ensure 
that the project involved will continue to operate until the original 
maturity date of such loan in a manner that will provide rental 
housing for the elderly and handicapped on terms at least as 
advantageous to existing and future tenants as the terms required 
by the original loan agreement entered into under this section and 
any other loan agreements entered into under other provisions of 
law. 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1191 
"(2) The Secretary may not sell any mortgage held by the Secre-
tai^ as security for a loan made under this section. 
(kXD In the process of selecting projects for loans under this 
section, the Secretary shall assure the inclusion of special design 
features and congregate space if necessary to meet the special needs 
of elderly and handicapped residents. 
"(2) The Secretary shall encourage the provision of small and 
scattered site group homes and independent living faMities for 
nonelderly handicapped persons and families. 
"(1) The basis for selection of a contractor to be employed in the 
development or construction of a project^assisted under this section 
shall be determined by the proiect sponsor or borrower if the 
development cost of the project is less than $2,000,000, if the project 
rentals will be less than 110 per centum of the fair market rent 
applicable to projects financed under this section, or if the sponsor of 
the project is a labor organization. 
^ 
"(m) Nothing in this section authorizes the Secretary to prohibit 
any sponsor from voluntarily providing funds from other sources for 
amenities and other features of appropriate design and construction 
suitable for inclusion in such project if the cost of such cunenities is 
(1) not financed with the loan, and (2) not taken into account in 
determining the amount of Federal subsidy or of the rent contribu-
tion of tenants.". 
CONGREGATE SERVICES 
SEC. 224. (a) Section 408 of the Congregate Housing Services Act of 
1978 is amended by adding at the end thereof the following new 
subsection: 
"(c) Not later than March 15, 1984, the Secretary shall prepare 
and submit to the Congress a report evaluating the effects of any 
change§ in the administration of the congregate housing services 
program established in this title which have occurred since January 
1, 1983. Such report shall include an evaluation by the Secretary of 
the reorganization or decentralization of the administration of such 
program, and any legislative recommendations of the Secretary for 
the establishment of a permanent congregate housing services pro-
gram and the reasons for such recommendations.". 
(b) Section 411(a) of the Congregate Housing Services Act of 1978 
is amended— 
(1) by striking out "and" &t the end of paragraph (3); 
(2) by striking out the period at the end of paragraph (4); and 
(3) by adding the following at the end thereof: 
"(5) for fiscal year 1984, not to exceed $4,000,000; and 
"(6) for fiscal year 1985, such sums as may be necessary.". 
Selection of 
contractor. 
Report to 
Congress. 
42 u s e 8007. 
42 u s e 8010. 
DEMONSTRATION PROJECT 
SEC. 225. (a) The Congress finds that— 
(1) the Department of Health and Human Services spends in 
excess of $5,000,000,000 annually for housing in the form of 
allowances for shelter for public assistance recipients; 
(2) States administering the Department of Health and 
Human Services public assistance program often specify shelter 
allowances that have little relationship to the cost or the quality 
of the housing in which public assistance recipients live; 
(3) at least 30 per centum of public assistance recipients live 
in substandard housing; 
12 u s e 1701Z-6 
note. 
97 STAT. 1192 
PUBLIC LAW 98-181—NOV. 30, 1983 
(4) the older rental buildings in which many public assistance 
recipients live are in those neighborhoods that need the assist-
ance of the programs of the Department of Housing and Urban 
Development for preservation and rehabilitation; and 
(5) there is the potential for improving housing for many 
lower income families by coordinating State and local govern-
ment efforts in order to assure that families receiving public 
assistance payments from the Department of Health and 
Human Services are able to live in decent, safe, and sanitary 
housing. 
(b) The purpose of this section, therefore, is to provide assistance 
to units of general local government and their designated agencies 
in order to develop a program that will— 
(1) encourage the upgrading of housing occupied primarily by 
lower income families, including families receiving assistance 
under the aid for families with dependent children program 
42 use 601. 
established under title IV of the Social Security Act; and 
(2) provide for better coordination at the local level of the 
efforts to assist families receiving public assistance from the 
Department of Health and Human Services so that these fami-
lies will be able to occupy affordable housing that is decent, 
safe, and sanitary and that, if necessary, is rehabilitated with 
funds provided by the Department of Housing and Urban 
Development. 
(c) The Secretary of Housing and Urban Development (hereafter 
referred to in this section as the "Secretary") shall, to the extent 
approved in appropriation Acts, establish and maintain a demon-
stration project to carry out the purpose described in subsection (b). 
Grants. 
(d) In canying out such project, the Secretary shall make grants 
to units of general local government, or designated agencies thereof, 
to carry out administrative plans approved by the Secretary in 
accordance with subsection (e), and the Secretary may make grants 
to States to provide technical assistance for the purpose of assisting 
such units of general local government to develop and carry out 
such plans. 
Grants. 
(eXl) Grants may be made to States and units of general local 
government and agencies thereof that apply for them in a manner 
and at a time determined by the Secretary and that, in the case of 
units of general local government and their agencies, are selected on 
the basis of an administrative plan described in such application. 
(2) No such administrative plan shall be selected by the Secretary 
unless it sets forth a plan for local government activities that are 
designed to— 
(A) require or encourage owners of rental housing occupied by 
lower income families to bring such housing into compliance 
with local housing codes; 
(B) provide technical assistance, loans, or grants to assist 
owners described in subparagraph (A) to undertake cost-effec-
tive improvements of such housing; 
(C) work with the State to establish and implement a schedule 
of local shelter allowances for recipients of assistance under 
42 use 601. 
title IV of the Social Security Act based on building quality that 
will be applicable to buildings involved in this program; and 
(D) coordinate local housing inspection, housing rehabilitation 
loan or grant assistance, rental assistance, and social service 
programs for the purpose of improving the qualitv and afford-
ability of housing for lower income families. 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1193 
(3) Funds received from any grant made by the Secretary to a unit 
of general local government shall be made available for use accord-
ing to the administrative plans smd may be used for— 
(A) technical assistance or financial assistance to property 
owners to upgrade housing projects described in paragraph 
(2XA) of this subsection; 
(B) temporary rental assistance to families who live in build-
ings assisted under this program and who are eligible for, but 
are not receiving, assistance under section 8 of the United 
States Housing Act of 1937, except that such families shall not 
include families receiving assistance under title IV of the Social 
Security Act, and the amount of such rental assistance may not 
exceed 20 per centum of each grant received under this section; 
(C) housing counseling and referral and other housing related 
services; 
(D) expenses incurred in administering the program carried 
out with funds received under this section, except that such 
expenses may not exceed 10 per centum of the grant received 
under this section; and 
(E) other appropriate activities that are consistent with the 
purposes of this section and that are approved by the Secretary. 
(0 Any recipient of a grant from the Secretary under this section 
shall agree to— 
(1) contribute to the program an amount equal to 15 per 
centum of the funds received from the Secretary under this 
section, and the Secretary shall permit the recipient to meet 
this requirement by the contribution of the value of services 
carried out specifically in connection with the program assisted 
under this section; 
(2) permit the Secretary and the General Accounting Office to 
audit its books in order to assure that the funds received under 
this section are used in accordance with the section; and 
(3) other terms and conditions prescribed by the Secretary for 
the purpose of carrying out this section in an effective and 
efficient msinner. 
(g) In making grants available under this section, the Secretary 
shall select as recipients at least 20 units of general local govern-
ment (or their designated agencies). The selection of proposals for 
funding shall be based on criteria that result in a selection of 
projects that will enable the Secretary to carry out the purpose of 
this section in an effective and efficient manner and provide a 
sufficient amount of data necessary to make an evaluation of the 
demonstration project carried out under this section. 
(hXD Not later than June 1, 1984, the Secretary shall transmit to 
the Congress an interim report on the implementation of the demon-
stration under this section. 
(2) The Secretary shall transmit, not later than October 1,1985, to 
both Houses of the Congress a detailed report concerning the find-
ings and conclusions that have been reached by the Secretary as a 
result of carrying out this section, along with any legislative recom-
mendations that the Secretary determines are necessary. 
(i) To carry out this section, there are authorized to be appropri-
ated not to exceed $10,000,000 during fiscal year 1984, and not to 
exceed $15,000,000 during fiscal year 1985, to remain available until 
expended. 
42 use 1437f. 
42 use 601. 
Reports to 
eongress. 
97 STAT. 1194 
PUBLIC LAW 98-181—NOV. 30, 1983 
12 u s e 1715z. 
Homeowner 
assistance fund. 
42 u s e 1437c. 
eommitments 
and 
reservations. 
SECTION 235 HOMEOWNERSHIP ASSISTANCE 
SEC. 226. (a) Section 235(cXl) of the National Housing Act is 
amended— 
(1) by striking out "The" in the first sentence and inserting in 
lieu thereof "Subject to the second sentence of this paragraph, 
the"; and 
(2) by inserting after the first sentence the following new 
sentence: "Assistance pajmients pursuant to any new contract 
entered into after September 30, 1983, that utilizes authority 
approved in appropriation Acts for any fiscal year beginning 
after such date may not be made for more than ^ 10-year 
period.". 
(b) Section 235(c) of such Act is amended by adding at the end 
thereof the following new paragraph: 
"(3XA) There hereby is established in the Treasury of the United 
States a fund, which, to the extent approved in appropriation Acts, 
may be used by the Secretary for purposes of carrying out subpara-
graph (B). There shall be deposited into such fund (i) any amount 
recaptured under paragraph (2); (ii) any authority to make assist-
ance payments under subsection (a) that is committed for use in a 
contract but is unused because the mortgage loan, or advance of 
credit involved is refinanced or because such assistance payments 
are terminated or suspended for other reasons before the original 
termination date of such contract; and (iii) any amount received 
under subparagraph (C). 
"(Bf) In th^ase of any homeowner whose assistance payments are 
terminated by reason of the 10-year limitation referred to in para-
graph (1), and who is determined by the Secretary to be unable to 
assumeptthe full payments due under the mortgage, loan, or advance 
of credit involved, the Secretary shall, to the extent of the availabil-
ity of amounts in the fund estabhshed in subparagraph (A), contract 
to make, and make, continued assistance pajmients on behalf of such 
homeowner. Such continued assistance payments shall be made in 
an amount determined in accordance with the applicable provisions 
of paragraph (1) or subsection (aX2XB) arid for such period as the 
Secretary determines to be appropriate. 
"(C) Any amounts in such fund determined by the Secretary to be 
in excess of the amounts currently required to carry out the provi-
sions of subparagraph (B) shall be invested by the Secretary in 
obligations of, or obligations guaranteed as to both principal and 
interest by, the United States or any agency of the United States.". 
(c) Section 235(hXl) of such Act is amended— 
(1) by striking out "and" after "1971," in the second sentence; 
(2) by inserting the following before the period at the end of 
such sentence: ", and by such sums as may be approved in an 
appropriation Act on or after October 1, 1983 (from the addi-
tional authority to enter into contracts made available on such 
date under the first sentence of section 5(cXl) of the United 
States Housing Act of 1937)"; and 
(3) by inserting the following new sentences after the second 
sentence: "The aggregate amount that may be obligated over 
the duration of the contracts entered into with the authority 
provided on or after October 1, 1983, may not exceed such sums 
of new budget authority as may be appropriated after the date 
of enactment of this sentence. The Secretary shall begin issuing 
new commitments and reservations to provide mortgage insur-
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1195 
ance and assistance payments under this section before the 
expiration of the 30-day period following the approval in any 
appropriation Act of budget authority for this section after the 
date of the enactment of this sentence.". 
(d) Section 235(i) of such Act is amended— 
12 USC 17l5z. 
(1) in paragraph (3XA)— 
(A) by striking the word "two-family" and inserting 
"three-family" in lieu thereof; and 
(B) by inserting the words "or a two-family" before the 
word "dwelling" the first time it appears; 
(2) in paragraph (3XD)— 
(A) by inserting the words "or three-family" before the 
word "dwelling"; 
(B) by striking the figure "$55,000" and inserting 
"$60,000" in lieu thereof; and 
(C) by striking the figure "$61,250" and inserting 
"$66,250" in lieu thereof; and 
(3) by adding at the end thereof the following new paragraphs: 
Insurance. 
"(4) In msuring eligible mortgages under this subsection, the 
Secretary may not deny insurance on the basis that a mortgage 
involves a two- to three-family dwelling or is to be used to finance 
substantial rehabilitation rather than new construction. 
"(5) As a condition of insuring a mortgage on a two- to three-
family dwelling, the Secretary shall require the mortgagor (A) not to 
discriminate against prospective tenants on the basis of their receipt 
of or eligibility for housing assistance under any Federal, State or 
local housing assistance program and (B) to agree that during the 
term of the mortgage each of the rental units shall be occupied by, 
or available for occupancy by, persons and families whose incomes 
do not exceed 100 per centum of the area median income.". 
(e) Section 235(j) of such Act is amended— 
(1) in paragraph (6) by striking out "two-family" and inserting 
"two- to three-family" in lieu thereof; and 
(2) by adding at the end thereof the following new paragraph: 
Insurance. 
"(9) In insuring eligible mortgages under this subsection, the 
Secretary may not deny insurance on the basis that a mortgage 
involves a two- to three-family dwelling or is to be used to finance 
substantial rehabilitation rather than new construction.". 
PET OWNERSHIP IN ASSISTED RENTAL HOUSING FOR THE ELDERLY OR 
HANDICAPPED 
SEC. 227. (a) No owner or manager of any federally assisted rental 
12 USC I701r-1. 
housing for the elderly or handicapped may— 
(1) as a condition of tenancy or otherwise, prohibit or prevent 
any tenant in such housing from owning common household 
pets or having common household pets living in the dwelling 
accommodations of such tenant in such housing; or 
(2) restrict or discriminate against any person in connection 
with admission to, or continued occupancy of, such housing by 
reason of the ownership of such pets by, or the presence of such 
pets in the dwelling accommodations of, such person. 
(bXD Not later than the expiration of the twelve-month period 
Regulations. 
following the date of the enactment of this Act, the Secretary of 
Housing and Urban Development and the Secretary of Agriculture 
shall each issue such regulations as may be necessary to ensure (A) 
compliance with the provisions of subsection (a) with respect to any 
97 STAT. 1196 
PUBLIC LAW 98-181—NOV. 30, 1983 
Rules. 
"Federally 
assisted rental 
housing for the 
elderly or 
handicapped." 
Ante, p. 1190. 
42 u s e 1437 
note. 
12 u s e 1701. 
42 u s e 1471. 
12 u s e 1701q. 
program of assistance referred to in subsection (d) that is adminis-
tered by such Secretary; and (B) attaining the goal of providing 
decent, safe, and sanitary housing for the elderly or handicapped, 
(2) Such regulations shall establish guidelines under which the 
owner or manager of any federally assisted rental housing for the 
elderly or handicapped (A) may prescribe reasonable rules for the 
keeping of pets by tenants in such housing; and (B) shall consult 
with the tenants of such housing in prescribing such rules. Such 
rules may consider factors such as density of tenants, pet size, types 
of pets, potential financial obligations of tenants, and standards of 
pet care. 
(c) Nothing in this section may be construed to prohibit any owner 
or manager of federally assisted rental housing for the elderly or 
handicapped, or any local housing authority or other appropriate 
authority of the community where such housing is located, from 
requiring the removal from any such housing of any pet whose 
conduct or condition is duly determined to constitute a nuisance or a 
threat to the health or safety of the other occupants of such housing 
or of other persons in the community where such housing is located. 
(d) For purposes of this section, the term "federally assisted rental 
housing for the elderly or handicapped" means any rental housing 
project that— 
(1) is assisted under section 202 of the Housing Act of 1959; or 
(2) is assisted under the United States Housing Act of 1937, 
the National Housing Act, or title V of the Housing Act of 1949, 
and is designated for occupancy by elderly or handicapped 
families, as such term is defined in section 202(dX4) of the 
Housing Act of 1959. 
TITLE III—RENTAL HOUSING REHABILITATION AND 
DEVELOPMENT PROGRAM 
RENTAL REHABILITATION AND DEVELOPMENT GRANTS 
SEC. 301. The United States Housing Act of 1937 is amended by 
inserting before section 18 the following: 
RENTAL REHABILITATION AND DEVELOPMENT GRANTS 
42 use i437o. 
"SEC. 17. (a) PROGRAM AUTHORITY.—(1) 
REHABILITATION AND 
DEVELOPMENT GRANTS.—The Secretary is authorized— 
"(A) to make rental rehabilitation grants to States and units 
of general local government to help support the rehabilitation 
of privately owned real property to be used for primarily resi-
dential rental purposes in accordance with subsection (c); and 
"(B) to make development grants for new construction or 
substantial rehabilitation in accordance with subsection (d). 
"(2) AUTHORITY TO RESERVE HOUSING ASSISTANCE.—In connection 
with a grant under this section, the Secretary may reserve authority 
Ante, p. 1181. 
to provide housing assistance under section 8(o) to the extent 
necessary— 
"(A) to provide housing assistance to persons displaced by 
activities under this section; or 
"(B) to support the grantee's program. 
"(3) AUTHORIZATION.—To carry out the purposes of this section 
the Secretary may utilize not to exceed $615,000,000, as provided in 
Ante, p. 1176. 
Section 5(c) for Hscal years 1984 and 1985, of which amount— 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1197 
"(A) not to exceed $150,000,000 shall be available in each such 
year for rental rehabilitation, of which $1,000,000 shall be 
available each year for technical assistance; and 
"(B) not to exceed $200,000,000 for fiscal year 1984, and 
$115,000,000 for fiscal year 1985, shall be available for develop-
ment grants. 
"(b) DISTRIBUTION OF RENTAL REHABIUTATION GRANT FUNDS.—(1) 
FORMULA ALLOCATION.—Of the amount available in any fiscal year 
for rehabilitation grants under this section, the Secretary shall 
allocate amounts for rehabilitation grants under subsection (c) to 
cities having populations of fifty thousand or more, urban counties, 
and States for use as provided in subsection (e), on the basis of a 
formula which shall be contained in a regulation proposed by the 
Secretary not later than sixty days after the effective date of this 
section. Such regulation shall be accompanied by the specific fund 
allocation for fiscal year 1984 for individual cities, urban counties, 
and States which would result from the proposed formula and any 
adjustments under paragraph (2). The formula contained in the 
regulation shall take into account objectively measurable condi-
tions, including such factors as low income renter population, over-
crowding of rental housing, the extent of physically inadequate 
housing stock, and such other objectively measurable conditions as 
the Secretary deems appropriate to reflect the need for assistance 
under this section, but excluding data relating to such factors which 
pertain to areas eligible for assistance under title V of the Housing 
Act of 1949. 
"(2) ADJUSTMENTS.—Before an allocation determined under para-
graph (1) for any fiscal year is made available for use, the Secretary 
may adiust the allocation as follows: 
' (A) The Secretary is authorized to establish minimum alloca-
tion amounts for cities and urban counties, representing pro-
gram levels below which, in the Secretary's determination, 
conduct of a rental rehabilitation program would not be feas-
ible. The amount of any allocation which is below this minimum 
shall be added to the allocation for the State in which the city or 
county is located and shall be available in accordance with 
subsection (e). 
"(B) Beginning with fiscal years after fiscal year 1984, the 
Secretary is authorized to adjust the allocation for a city, urban 
county, or State administering a rental rehabilitation program 
as provided in subsection (f), by up to 15 per centum above or 
below the amount of such allocation, based on an annual review 
of performance in carrying out activities under this section in a 
timely manner and in achieving the result that at least 80 per 
centum of the units rehabilitated with assistance under this 
section in all program years have rents which are and remain at 
a level which would be affordable by lower income families. The 
last sentence of subparagraph (A) shall not apply to an alloca-
tion which is below the minimum amount described therein by 
reason of an adjustment under this subparagraph. The Secre-
tary shall establish by regulation performance criteria for pur-
poses of this subparagraph. 
"(3) REALLOCATION.—After the allocation of rehabilitation grant 
amounts, the Secretary is authorized to reallocate such amounts 
among grantees on the basis of the Secretary's assessment of the 
progress of grantees in carrying out activities under this section in 
accordance with their specifled schedules. Reallocations under this 
Regulation. 
42 use 1471. 
Rental 
rehabilitation 
program 
administration. 
97 STAT. 1198 
PUBLIC LAW 98-181—NOV. 30, 1983 
paragraph shall be designed to encourage use of these resources 
expeditiously, consistent with the sound development and adminis-
tration of the grantees' rental rehabilitation programs. 
"(4) RECAPTURE.—Any rental rehabilitation grant amounts which 
are not obligated at the end of any fiscal year shall be added to the 
amount available for allocation for such grants for the succeeding 
fiscal year. 
"(c) 
GRANTS FOR 
MODERATE REHABIUTATION.—(1) 
PROGRAM 
DESCRIPTION.—A rehabilitation grant may be made under this sec-
tion on the basis of satisfactory information provided in a program 
description which shall be submitted by the grantee at such time 
and in such manner as the Secretary may prescribe and which shall 
contain— 
"(A) a description of the grantee's proposed rental rehabil-
itation program, which shall consist of the activities each 
grantee proposes to undertake for the fiscal year, including the 
grantee's anticipated schedule in carrying out those activities, 
or, in case of a State distributing resources as provided in 
subsection (e), its proposed method of distributing the resources, 
which shall have been made available to the public; 
"(B) a certification that the grantee's program was developed 
after consultation with the public; 
"(C) a statement of the procedures and standards which will 
govern selection of proposals by the grantee, which procedures 
and standards shall take into account the extent to which 
the proposal represents the efficient use of Federal resources 
and the extent to which the housing units involved will be 
adequately maintained and operated with rents at the levels 
proposed; 
"(D) an estimate of the effect of the proposed program on 
neighborhood preservation; 
"(E) evidence demonstrating the financial feasibility of the 
proposed program, including the availability of non-Federal and 
private resources and including evidence that the projects to be 
selected for rehabilitation will be located in neighborhoods 
where rents are generally affordable to lower income families 
and that the character of the neighborhood indicates that such 
rents will not materially change over an extended period; and 
"(F) such other information as the Secretary shall prescribe. 
Rental 
"(2) PROGRAM REQUIREMENTS.—A rental rehabilitation program 
rehabilitation. 
assisted under this section shall provide that— 
"(A) grant assistance shall only be used to rehabilitate real 
property to be used for primarily residential rental purposes; 
"(B) grants shall only be used to assist the rehabilitation of 
real property located in neighborhoods where the median 
income does not exceed 80 per centum of the median income for 
the area; 
"(C) grant assistance for any structure shall not exceed 50 pei 
centum of the total costs associated with the rehabilitation of 
that structure, as determined by the Secretary, except that 
where the Secretary determines that refinancing costs and the 
special nature of the project require a greater amount of assist-
ance, the grant amount shall be limited to not to exceed 50 per 
centum of the development cost including acquisition; 
"(D) rehabilitation assisted under this section shall only be 
that which is necessary to correct substandard conditions, to 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1199 
make essential improvements, and to repair major systems in 
danger of failure; 
"(E) the amount of rental rehabilitation assistance provided 
under this section for any structure shall not exceed $5,000 per 
unit except as otherwise determined by the Secretary in areas 
of high material and labor costs where the grantee demon-
strates that every appropriate step has been taken by the 
grantee to contain the amount of assistance within the limit set 
by this paragraph and that an exception is necessary to conduct 
a rehabilitation program while not exceeding the rehabilitation 
standards of subparagraph (D); 
"(F) a structure may be assisted under this section only if the 
rehabilitation of such structure will not cause the involuntary 
displacement of very low-income families by families who are 
not very low-income families; 
"(G) the owner of each assisted structure agrees— 
"(i) not to discriminate against prospective tenants on the 
basis of their receipt of or eligibility for housing assistance 
under any Federal, State, or local housing assistance pro-
gram or, except for a structure for housing for the elderly, 
on the basis that the tenants have a minor child or children 
who will be residing with them; and 
"(ii) not to convert the units to condominium ownership 
(or in the case of a cooperative, to condominium ownership 
or any form of cooperative ownership not eligible for assist-
ance under this section); 
for at least 10 years beginning on the date on which the units in 
the project are completed; 
"(H) the State or unit of general local government that 
receives the assistance certifies to the satisfaction of the Secre-
tary that the assistance will be made available in conformity 
with Public Law 88-352 and Public Law 90-284; and 
"(I) 100 per centum of the amount of assistance provided 
under this section shall be used by the grantee for the benefit of 
lower income families, except that such requirement shall be 
reduced to (i) 70 per centum if the grantee certifies in accord-
ance with standards prescribed by the Secretary that such 
reduction is necessary, and that the gremtee cannot develop a 
proposed program which complies with such requirement, after 
consultation with the public regarding the inability to develop a 
program which complies with such requirement, and (ii) to not 
less than 50 per centum where the Secretary determines that 
such further reduction is necessary. 
"(3) SECRETARIAL RESPONSIBILITY.—The Secretary shall assure 
that— 
"(A) an equitable share of the rehabilitation grants under this 
section is used to assist in the provision of housing for families, 
including large families with children; and 
"(B) a priority shall be given to projects containing units in 
substandard condition which are occupied by very low-income 
families. 
"(d) GRANTS FOR NEW CONSTRUCTION AND SUBSTANTIAL REHABIU-
TATION.— 
"(1) TYPES OF ASSISTANCE.—Development grant funds may be used 
by the grantee to make grants or loans, provide interest reduction 
payments, or furnish other comparable assistance to support the 
Low-income 
families, 
displacement. 
42 u s e 2000a 
note; 82 Stat. 73. 
97 STAT. 1200 
PUBLIC LAW 98-181—NOV. 30, 1983 
Regulations. 
Minimum 
standards. 
Regulations, 
submittal to 
Congress. 
new construction or substantial rehabilitation of real property to be 
used primarily for residential rental purposes. 
"(2) AREA EUGIBILITY,—To be eligible for development grants 
under this subsection, a project must be located in an area that is 
experiencing a severe shortage of decent rental housing opportuni-
ties for families and individuals without other reasonable and 
affordable housing alternatives in the private market. The Secre-
tary shall issue regulations, consistent with the preceding sentence, 
that set forth minimum standards for determining areas eligible for 
assistance. Such standards shall be based on objectively measurable 
conditions, and shall take into account the extent of poverty, the 
extent of occupancy of physically inadequate housing by lower 
income families, the extent of housing overcrowding experienced by 
lower income families, the level and duration of rental housing 
vacancies, the extent of the lag between the estimated need for and 
production of rental housing, and other objectively measurable con-
ditions specified by the Secretary consistent with the first sentence 
of this subsection. The Secretary shall propose regulations under 
this paragraph not later than 60 days after the date of enactment of 
this section and shall promptly transmit to the Congress such 
proposed regulations accompanied by a list of those areas which 
meet the minimum standards contained in such regulations. Any 
unit of government located in an area which meets such minimum 
standards is eligible to submit an application for a rental housing 
development grant under this section. The Secretary may also 
consider an application for a project to be located in an area which 
is not eligible under such standards where the Secretary determines 
that a project involving assistance for other than moderate rehabili-
tation is necessary in order to meet special housing needs or to 
advance a particular neighborhood preservation purpose. 
"(3) APPUCATION.—A development grant may be made under this 
section on the basis of information provided in an application which 
shall be submitted by the grantee at such time and in such manner 
as the Secretary may prescribe. In addition to information relating 
to the selection criteria set forth in paragraph (5), the application 
shall contain— 
"(A) a description of the grantee's proposed rental develop-
ment program, which shall consist of the activities the grantee 
proposes to undertake for the fiscal year, including a specifica-
tion of the grantee's anticipated schedule in carrying out those 
activities; 
"(B) a certification that the grantee's program was developed 
after consultation with the public; 
"(C) a statement of the procedures and standards which will 
govern selection of proposals by the grantee, which procedures 
and standards shall take into account the extent to which the 
proposal represents the efficient use of Federal resources and 
the extent to which the housing units involved will be ade-
quately maintained and operated with rents maintained at the 
levels proposed; 
"(D) an estimate of the effect of the proposed program on 
neighborhood preservation; and 
"(E) such other information as the Secretary shall prescribe. 
"(4) PROGRAM REQUIREMENTS.—A rental development program 
assisted under this section shall provide that— 
"(A) grant assistance shall be used to develop real property to 
be used for residential rental purposes only; 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1201 
"(B) grant assistance for any structure shall not exceed 50 per 
centum of the total costs associated with the rehabilitation or 
development of that structure, as determined by the Secretary, 
except that where the Secretary determines that refinancing 
costs and the special nature of the project require a greater 
amount of assistance, the grant amount shall be limited to not 
to exceed 50 per centum of the development cost including 
acquisition; 
"(C) a structure may be assisted under this section only if the 
development of such structure will not cause the involuntary 
displacement of very low-income families by families who are 
not very low-income families; 
"(D) the owner of each assisted structure agrees— 
"(i) not to discriminate against prospective tenants on the 
basis of their receipt of or eligibility for housing assistance 
under any Federal, State, or local housing assistance pro-
gram or, except for a structure for housing for the elderly, 
on the basis that the tenants have a minor child or children 
who will be residing with them; and 
"(ii) not to convert the units to condominium ownership 
(or in the case of a cooperative, to condominium ownership 
or any form of cooperative ownership not eligible for assist-
ance under this section); 
during the 20-year period beginning on the date on which the 
units in the project are available for occupancy; 
"(E) the owner of each assisted structure agrees that, during 
the 20-year period beginning on the date on which 50 per 
centum of the units in the structure are occupied or completed, 
at least 20 per centum of the units the construction or substan-
tial rehabilitation of which is provided for under the application 
shall be occupied, or available for occupancy by, persons and 
families whose incomes do not exceed 80 per centum of the area 
median income; 
"(F) the structure— 
"(i) will have a value after rehabilitation or construction 
that is not more than the amount of a mortgage on the 
structure that could be insured under section 207 of the 
National Housing Act; and 
"(ii) is secured by a mortgage which bears a rate of 
interest and contains such other terms and conditions as 
the Secretary determines are reasonable; 
"(G) the grantee must commence construction or substantial 
rehabilitation activities not later than 24 months after notice of 
project selection; and 
"(H) the State or unit of general local government that 
receives the assistance certifies to the satisfaction of the Secre-
tary that the assistance will be made available in conformity 
with Public Law 88-352 and Public Law 90-284. 
"(5) PROJECT SELECTION.—In selecting projects to receive develop-
ment grants, the Secretary shall make such selection on the basis of 
the extent— 
"(A) of the severity of the shortage of decent rental housing 
opportunities in the area in which the project or projects are to 
be located for families and individuals without other reasonable 
and affordable housing alternatives in the private market; 
Low-income 
families, 
displacement. 
12 u s e 1713. 
42 u s e 2000a 
note; 82 Stat. 73. 
97 STAT. 1202 
PUBLIC LAW 98-181—NOV. 30, 1983 
42 use 1437f. 
Violation, 
payment. 
"(B) of non-Federal public and private financial or other 
contributions that reduce the amount of assistance necessary 
under this section; 
"(C) to which the project or projects contribute to neighbor-
hood development and mitigate displacement; 
"(D) to which the applicant has established a satisfactory 
record of performance in meeting assisted housing needs and 
has the capacity to undertake the program in a timely manner; 
"(E) to which the assistance requested will provide the maxi-
mum number of units for the least cost to the Federal Govern-
ment, taking into consideration the extent to which assistance 
provided will be recaptured and cost differences among differ-
ent areas, among financing alternatives, and among the types of 
projects and tenants being served; 
"(F) to which the grantee will establish a mechanism to 
assure the maintenance of affordable rentals for lower income 
families; 
"(G) to which the applicant has demonstrated the financial 
feasibility of the proposed program, including the availability of 
non-Federal and private resources; and 
"(H) to which an equitable share of the development grant 
funds under this section will be used to assist in the provision of 
housing for families, including large families with children. 
"(6) PRIORITIES.—In selecting projects for grants under this subsec-
tion, the Secretary shall give a priority to proposals involving 
projects— 
"(A) which exceed the minimum requirements of paragraph 
(4XE); and 
"(B) in areas where the waiting lists for housing assistance 
are relatively long and where families holding certificates 
under section 8 require an excessive length of time to find 
housing. 
"(7) ENFORCEMENT OF PROGRAM REQUIREMENTS.—(A) The grantee 
shall take appropriate legal action to enforce compliance with the 
requirements of this subsection by the owner of any assisted prop-
erty or his or her successors in interest during the 20-year period 
beginning on the date on which 50 per centum of the units are 
occupied or are completed. For any violation of such agreements, the 
owner or his or her successors in interest shall make a payment to 
the grantee of an amount that equals the total amount of assistance 
provided under this title with respect to such project, plus interest 
thereon (without compounding), for each year and any fraction 
thereof that the assistance was outstanding, at a rate determined by 
the Secretary taking into account the average yield on outstanding 
marketable long-term obligations of the United States during the 
month preceding the date on which the assistance was made avail-
able. The amount of such assistance (and accrued interest) which is 
required to be repaid shall be reduced by 10 per centum for each full 
year in excess of 10 years which intervened between the commence-
ment of the period and the violation. Any amounts recovered by the 
grantee shall be used to furnish assistance under this section. 
"(B) Notwithstanding any other provision of law, any assistance 
provided under this subsection shall constitute a debt, which is 
payable in the case of any failure to carry out the agreements, and 
shall be secured by the security instruments provided by the owner 
to the grantee. 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1203 
"(8XA) RENT PROVISIONS.—Rents charged for units available for 
occupancy by lower income families in any project assisted under 
this subsection shall be approved by the grantee. In approving such 
rents, the grantee shall provide that the rents of such units are not 
more than 30 per centum of the adjusted income of a family whose 
income equals 50 per centum of the median income for the area, as 
determined by the Secretary with adjustments for smaller and 
larger families. Not less than 30 days prior written notice of any 
increase in rents shall be provided to such tenants. 
"(B) Any schedule of rents submitted by an owner to the grantee 
for approval shall be deemed to be approved unless the grantee 
informs the owner, within 60 days after receiving such schedule, 
that such schedule is disapproved. 
"(9) GRANT AMOUNT.—The amount of a development grant pro-
vided under this subsection shall not be more than that amount 
which will provide decent rental or cooperative housing of modest 
design which is affordable for families and individuals without other 
reasonable and affordable housing alternatives in the private 
market, including an amount necessary to achieve compliance with 
paragraph (8XA). 
"(e) STATE PROGRAM.—(1) Except as provided in paragraph (2), the 
State shall administer resources made available under subsection 
(bX2) for any fiscal year. These resources shall only be used to carry 
out activities under this section in cities with populations of less 
than fifty thousand and in urban counties and cities whose alloca-
tions are less than the minimum allocation amount established 
under subsection (bX2), but may not be used in areas which are 
eligible for assistance under title V of the Housing Act of 1949. The 
State may use all or part of these resources (A) to carry out its own 
rental rehabilitation program, or (B) to distribute them to units of 
general local government. A city with a population over fifty thou-
sand may, with the agreement of the State government, elect to 
contract with the State to administer the grant program under this 
section in any fiscal year. 
"(2) States may elect not to administer resources made available 
under subsection (bX2) of this section. This election shall be made in 
such manner and before such time as the Secretary may prescribe. 
The Secretary shall administer the resources available to any State 
exercising such an election in accordance with regulations and 
procedures prescribed by the Secretary, including the administra-
tion of grant programs of cities with populations over fifty thousand 
which elect not to administer their own program. Such regulations 
shall, to the maximum extent practicable, be comparable to those 
for cities and urban counties receiving resources under subsection 
(b). 
"(3) A State may apply for and receive, on behalf of a unit of local 
government located in that State and with the concurrence of that 
unit of general local government, a rental development grant to be 
used in accordance with the provisions of subsection (d). 
"(4) In any case in which the State is a grantee under any 
provision of this section, the Secretary shall require that the State 
take such actions as may be appropriate to assure compliance with 
the program requirements, owner agreements, and other provisions 
of this section. 
"(f) APPUCABIUTY OF REQUIREMENTS OR AGREEMENTS.—Require-
ments imposed by or agreements made with Stetes and units of 
general local government regarding rents in structures assisted 
Increase 
notification. 
42 use 1471. 
97 STAT. 1204 
PUBLIC LAW 98-181—NOV. 30, 1983 
under this section (including requirements relating to the rents 
which may be charged after rehabilitation) shall not apply to a 
structure assisted under this section unless (1) such requirements 
are imposed or agreements are entered into pursuant to a State law 
or local ordinance of general applicability which was enacted and in 
effect in that jurisdiction prior to the date of enactment of this 
section, and (2) such requirements or agreements would apply gener-
ally to structures not assisted under this section. 
Regulations. 
"(g) RELOCATION.—The Secretary shall by regulation establish 
such standards governing reasonable relocation payments and other 
related assistance as the Secretary determines to be appropriate, 
"(h) ADMINISTRATIVE EXPENSES.—Grantees receiving assistance 
under this section shall not deduct therefrom any amounts to cover 
administrative expenses incurred by them in carrying out their 
responsibilities under this section. 
"(i) PRESERVATION, ENVIRONMENTAL POUCY, AND LABOR STAND-
ARDS.—(1) The Secretary shall establish procedures which support 
national historic preservation objectives and which assure that, if 
any rehabilitation or development proposed to be assisted under this 
section would affect property which is included on the National 
Register of Historic Places or which is eligible for inclusion on the 
National Register of Historic Places, such activity shall not be 
undertaken unless (A) it will reasonably meet the standards issued 
by the Secretary of the Interior and the appropriate State historic 
preservation officer is afforded the opportunity to comment on the 
specific rehabilitation or development program, or (B) the Advisory 
Council on Historic Preservation is afforded an opportunity to com-
ment on cases for which the grantee of assistance, in consultation 
with the State historic preservation officer, determines that the 
proposed activity cannot reasonably meet such standards or would 
adversely affect historic property as defined therein. 
"(2) The Secretary's award and grantee's use of resources made 
available under this section shall be subject to section 104(f) of the 
Housing and Community Development Act of 1974. 
"(3) A structure assisted under this section shall be treated as a 
project subject to a mortgage insured under section 220 of the 
National Housing Act for the purpose of section 212 of such Act. 
"(j) FINANCING.—Subject to terms and conditions that are pre-
scribed by the Secretary and are consistent with the purpose and 
other provisions of this section, any obligation issued by a State or 
local housing agency for the purpose of financing the development of 
a project or projects assisted under this section is hereby deemed an 
obligation that meets the requirements of, and has the benefits 
(including the benefit of interest earned with respect to the obliga-
tion being exempt from Federal taxation) associated with, an obliga-
42 use 14371. 
tion described in section 11(b). 
"(k) DEFINITIONS.—For the purpose of this section— 
"(1) the term 'rehabilitation grant' means a grant to finance 
moderate rehabilitation; 
"(2) the term 'development grant' means a grant to finance 
new construction or substantial rehabilitation; 
"(3) the Secretary shall use the same population data and 
rules for designating cities and urban counties as apply under 
42 use 5301. 
title I of the Housing and Community Development Act of 1974; 
"(4) the term 'real property to be used primarily for residen-
tial rental purposes' includes cooperative or mutual housing 
42 use 5304. 
12 use 1715k, 
1715c. 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1205 
which has a resale structure which enables the cooperative to 
maintain affordability for lower income families; and 
"(5) the term 'grantee' means— 
"(A) any city or urban county receiving resources under 
this section; 
"(B) any State administering a rental rehabilitation or 
development program as provided in subsection (f); and 
"(C) any unit of general local government which receives 
assistance from the Secretary as provided in subsection 
(fX2). 
The Secretary shall encourage cooperation by units of general local 
government in the administration of grants under this section by 
permitting consortia of geographically proximate units of general 
local government to apply for assistance on behalf of their members, 
including establishment of eligibility under subsection (b) for consor-
tia whose combined populations exceed fifty thousand and which 
can otherwise meet the requirements of such subsection. Any 
amounts made available to such a consortium shall be deducted 
from the allocation to the State in which the units of general local 
government are located. 
"(1) REVIEW AND AUDIT.—The Secretary shall, at least on an 
annual basis, make such reviews and audits as may be necessary or 
appropriate to determine— 
"(1) where the grantee is a unit of general local government 
or a State carrying out its own program as provided in subsec-
tion (fKD, whether the grantee has carried out its activities in a 
timely manner and in accordance with the requirements of this 
section, and has a continuing capacity to carry out those activi-
ties in a timely manner; and 
"(2) where the grantee is a State distributing resources made 
available under this section to units of general local government 
as provided in subsection (eX2), whether the State (A) has 
distributed such resources in a timely manner and in accord-
ance with the requirements of this section, and (B) has made 
such reviews and audits of the units of general local govern-
ment as may be necessary or appropriate to determine whether 
they have satisfied the performance criteria described in para-
graph (1). 
In addition to the adjustments based on performance authorized by 
subsection (bX2), the Secretary may adjust, reduce, or withdraw 
resources made available to States and units of general local govern-
ment receiving assistance under this section, or take other action as 
appropriate in accordance with the findings of these reviews and 
audits, except that resources already expended on eligible activities 
shall not be recaptured or deducted from future resources made 
available to the grantee. Any amounts which become available as a 
result of actions under this paragraph shall be reallocated in the 
year in which they become available to such grantee or grantees as 
the Secretary may determine. 
"(m) PERFORMANCE REPORT.—Prior to the beginning of fiscal year 
1985 and each fiscal year thereafter, each grantee shall submit to 
the Secretary a performance report concerning the activities carried 
out pursuant to this section, together with an assessment by the 
grantee of the relationship of these activities to the objectives of this 
section. Such report shall contain an analysis of the program's cost 
effectiveness, the type and income levels of tenants who benefit from 
the rehabilitation program, any tenant displacement resulting from 
C!onsortium. 
Submittal to 
Secretary. 
97 STAT. 1206 
PUBLIC LAW 98-181—NOV. 30, 1983 
the program, and any other information the Secretary may require. 
To facilitate this reporting requirement, each grantee shall require 
owners of property rehabilitated under this section to provide veri-
fied income data and other pertinent tenant demographic informa-
tion as prescribed by the Secretary (to include household size and 
race) or to otherwise arrange for the collection of such information 
on an annual basis. The Secretary shall stipulate the format for 
such data collection to assure that such information can be aggre-
gated at the national level to allow congressional oversight. 
"(n) REPORT TO CONGRESS.—Prior to the beginning of fiscal year 
1985 and each fiscal year thereafter, the Secretary shall provide a 
report to the Congress ais to the overall progress of grantees in 
meeting the objectives of this section. Such report shall include an 
analysis of program costs, services delivered, beneficiaries, and the 
extent to which lower income tenants have been displaced as a 
result of rehabilitation assisted under this section.". 
42 use 5305. 
Ante, p. 1196. 
42 use 5307. 
42 use 5301 
note. 
CONFORMING AMENDMENTS TO THE HOUSING AND COMMUNITY 
DEVELOPMENT ACT OF 1974 
SEC. 302. (a) Section 105(a) of the Housing and Community Devel-
opment Act of 1974 is amended— 
(1) by striking out "and" at the end of clause (16); 
(2) by striking out the period at the end of clause (17) and 
inserting in lieu thereof "; and"; and 
(3) by adding at the end thereof the following: 
"(18) the rehabilitation or development of housing assisted 
under section 17 of the United States Housing Act of 1937.", 
(b) Section 107(d) of such Act is amended— 
(1) by striking out "unless the applicant" in paragraph (1) and 
inserting in lieu thereof the following: "and no assistance may 
be made available under section 17 of the United States Hous-
ing Act of 1937 unless the grantee"; and 
(2) by inserting "grantee or" before "applicant" in paragraph 
(3). 
(c) Section 817 of such Act is amended— 
(1) by striking out "and" after "1966,"; and 
(2) by inserting after "and 1970" the following: ", and section 
17 of the United States Housing Act of 1937". 
Insurance. 
12 use 1715Z-9. 
Post, p. 1207. 
Ante, p. 1196. 
CONFORMING AMENDMENTS TO THE NATIONAL HOUSING ACT 
SEC. 303. (a) Section 244 of the National Housing Act is amended 
oy adding at the end thereof the following: 
"(h) Notwithstanding any other provision of this section, in the 
case of a mortgage insured under section 223(f) secured by property 
which is to be rehabilitated or developed under section 17 of the 
United States Housing Act of 1937, such coinsurance may include 
provisions that— 
"(1) insurance benefits shall equal the sum of (A) 90 per 
centum of the mortgage on the date of institution of foreclosure 
proceedings (or on the date of acquisition of the property other-
wise after default), and (B) 90 per centum of interest arrears on 
the date benefits are paid; 
"(2) the mortgagee shall remit to the Secretary, for credit tu 
the General Insurance Fund, 90 per centum of any proceeds of 
the property, including sale proceeds, net of the mortgagee's 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1207 
actual and reasonable costs related to the property and the 
enforcement of security; 
"(3) pajonent of such benefits shall be made in cash unless the 
mortgagee submits a written request for debenture pajmient; 
and 
"(4) the underwriter of coinsurance may reinsure 10 per 
centum of the mortgage amount with a private mortgage insur-
ance company or with a State iportgage insurance agency. 
No commitment for insurance pursuant to this subsection may be 
issued on or after October 1,1985.". 
(b) Section 223(f) of such Act is amended by adding at the end 
thereof the following: 
, 
"(5) In the case of any purchase or refinancing under this subsec-
tion involving property to be rehabilitated or developed under sec-
tion 17 of the United States Housing Act of 1937, th6 Secretary 
may— 
"(A) include rehabilitation or development costs of not to 
exceed $20,000 per unit, except that the Secretary may increase 
such amount by not to exceed 25 per centum for specific proper-
ties where cost levels so require; 
"(B) permit subordinated liens securing up to the full amount 
of mortgage financing provided by State or local governments or 
agencies thereof; and 
"(C) pay such benefits in cash unless the mortgagee submits a 
written r^uest for debenture payment.". 
TITLE IV—PROGRAM AMENDMENTS AND EXTENSIONS 
PART A—FEDERAL HOUSING ADMINISTRATION MORTGAGE INSURANCE 
PROGRAMS 
Subpart 1—General Authorities and Requirements 
Insurance 
commitment 
issuance. 
12 u s e 1715n. 
Ante, p. 1196. 
EXTENSION OF MORTGAGE INSURANCE PROGRAMS 
SEC. 401. (a) Section 2(a) df the National Housing Act is amended 
Ante, p. 745. 
by striking out "December 1, 1983" in the first sentence and insert-
ing in lieu thereof "October 1,1985". 
(b) Section 217 of such Act is amended by striking out "November 
Ante, p. 745. 
30,1983" and inserting in lieu thereof "September 30,1985". 
(c) Section 221(f) of such Act is amended by striking out "Novem- 
Ante, p. 745. 
ber 30, 1983" in the fifth sentence and inserting in lieu thereof 
"September 30,1985". 
(dXD Section 235(m) of such Act is amended by striking out 
Ante, p. 745. 
"November 30, 1983" and inserting in lieu thereof "September 30, 
12 USC 17l5z. 
1985". 
(2) Section 235(qXl) of such Act is amended by striking out "No-
vember 30, 1983" in the last sentence and inserting in lieu thereof 
"September 30,1985". 
(e) Section 244(d) of such Act is amended— 
Ante, p. 745. 
(1) by striking out "November 30, 1983" in the first sentence 
and inserting in lieu thereof "September 30,1985"; 
(2) by striking out "December 1, 1983" in the second sentence 
and inserting in lieu thereof "October 1,1985"; and 
(3) by striking out the last two sentences. 
97 STAT. 1208 
PUBLIC LAW 98-181—NOV. 30, 1983 
Ante, p. 745. 
(f) Section 245(a) of such Act is amended by striking out "Novem-
ber 30, 1983" in the last sentence and inserting in lieu thereof 
"September 30, 1985". 
Ante, p. 745. 
(g) Section 809(0 of such Act is amended by striking out "Novem-
ber 30, 1983" in the last sentence and inserting in lieu thereof 
"September 30, 1985". 
Ante, p. 745. 
(h) Section 81(Xk) of such Act is amended by striking out "Novem-
ber 30, 1983" in the last sentence and inserting in lieu thereof 
"September 30, 1985". 
Ante, p. 745. 
(i) Section 1002(a) of such Act is amended by striking out "Novem-
ber 30, 1983" in the last sentence and inserting in lieu thereof 
"September 30,1985". 
Ante, p. 745. 
(j) Section 1101(a) of such Act is amended by striking out "Novem-
ber 30, 1983" in the last sentence and inserting in. lieu thereof 
"September 30, 1985". 
AMOUNT TO BE INSURED UNDER THE NATIONAL HOUSING ACT 
12 use l735f-9. 
SEC. 402. Section 531 of the National Housing Act is amended to 
read as follows: 
" A M O U N T O F I N S U R E D MORTGAGES 
"SEC. 531. Notwithstanding any other provision of law and subject 
only to the absence of qualified requests for insurance, to the 
12 use 1707. 
authority provided in title II, and to any funding limitation 
approved in appropriation Acts, the Secretary shall enter into com-
mitments during each of the fiscal years 1984 and 1985 to insure 
mortgages under title II with an aggregate principal amount of 
$50,900,000,000.". 
AUTHORIZATION OF APPROPRIATIONS TO COVER LOSSES TO THE GENERAL 
INSURANCE FUND 
12 use 1735c. 
SEC. 403. Section 519(0 of the National Housing Act is amended— 
(1) by inserting "such sums as may be necessary" after 
"appropriated"; and 
(2) by striking out "not" and all that follows through "1981". 
12 use 1709-1 
and note. 
12 use 1703. 
EUMINATION OF REQUIREMENT THAT FEDERAL HOUSING 
ADMINISTRATION INTEREST RATES BE SET BY LAW 
SEC. 404. (a) The Act entitled "An Act to amend chapter 37 of title 
38 of the United States Code with respect to the veterans' home loan 
program, to amend the National Housing Act with respect to inter-
est rates on insured mortgages, and for other purposes", approved 
May 7, 1968 (Pub. L. 90-301) is amended by striking out sections 3 
and 4. 
(bXD Section 2(bX5) of the National Housing Act is amended to 
read as follows: 
"(5) No insurance shall be granted under this section to any such 
financial institution with respect to any obligation representing any 
such loan, advance of credit, or purchase by it unless the obligation 
has such maturity, bears such insurance premium charges, and 
contains such other terms, conditions, and restrictions as the Secre-
tary shall prescribe, in order to make credit available for the 
purpose of this title. Any such obligation with respect to which 
insurance is granted under this section shall bear interest at such 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1209 
12 use 1713. 
12 u s e 1715e. 
rate as may be agreed upon by the borrower and the financial 
institution.'. 
(2) Section 203(bX5) of such Act is amended to read as follows: 
12 USe 1709. 
"(5) Bear interest at such rate as may be agreed upon by the 
mortgagor and the mortgagee.". 
(3) Section 203(kX3XB) of such Act is amended to read as follows: 
"(B) bear interest at such rate as may be agreed upon by the 
mortgagor and the mortgagee;". 
(4) The first sentence of the first undesignated paragraph of 
section 207(cX3) of such Act is amended to read as follows: "The 
mortgage shall provide for complete amortization by periodic pay-
ments within such term as the Secretary shall prescribe, and shall 
bear interest at such rate as may be agreed upon by the mortgagor 
and the mortgagee.". 
(5) The first sentence of section 213(d) of such Act is amended to 
read as follows: "Any mortgage insured under this section shall 
provide for complete amortization by periodic payments within such 
term as the Secretary may prescribe but not to exceed 40 years from 
the beginning of amortization of the mortgage, and shall bear 
interest at such rate as may be agreed upon by the mortgagor and 
the mortgagee.". 
(6) The second sentence of section 220(dX4) of such Act is amended 
12 use 1715k. 
to read as follows: "The mortgage shall bear interest at such rate as 
may be agreed upon by the mortgagor and the mortgagee and 
contain such terms and provisions with respect to the application of 
the mortgagor's periodic payment to amortization of the principal of 
the mortgage, insurance, repairs, alterations, payment of taxes, 
default reserves, delinquency charges, foreclosure proceedings, 
anticipation of maturity, additional and secondary liens, and other 
matters as the Secretary may in the Secretary's discretion 
prescribe.". 
(7) Section 220(hX2Xiii) of such Act is amended to read as follows: 
"(iii) bear interest at such rate as may be agreed upon by the 
mortgagor and the mortgagee;". 
(8) Section 221(dX5) of such Act is amended by striking out "(exclu- 
12 USC 1715Z. 
sive" and all that follows through "mortgage market" and inserting 
in lieu thereof the following: "at such rate as may be agreed upon by 
the mortgagor and the mortgagee". 
(9) Section 231(cX6) of such Act is amended to read as follows: 
12 USe 17l5v. 
"(6) bear interest at such rate as may be agreed upon by the 
mortgagor and the mortgagee; and". 
(10) Section 232(dX3XB) of such Act is amended to read as follows: 
12 USe 17l5w. 
"(B) bear interest at such rate as may be agreed upon by the 
mortgagor and the mortgagee.". 
(11) The first sentence of section 234(f) of such Act is amended to 
12 USe 17l5y. 
read as follows: "Any blanket mortgage insured under subsection (d) 
shall provide for complete amortization by periodic payments within 
such terms as the Secretary may prescribe but not to exceed 40 
years from the beginning of amortization of the mortgage, and shall 
bear interest at such rate as may be agreed upon by the mortgagor 
and the mortgagee.". 
(12) Section 235(iX3) of such Act is amended— 
12 USC I7i5z;. 
(A) by striking out "and" at the end of subparagraph (D); 
(B) by striking out the period at the end of subparagraph (E) 
and inserting in lieu thereof "; and"; and 
(C) by adding the following new subparagraph at the end 
thereof: 
97 STAT. 1210 
PUBLIC LAW 98-181—NOV. 30, 1983 
12 u s e 1715Z-5. 
12 u s e 1715Z-6. 
12 u s e 1715Z-7. 
12 u s e 1749bb. 
"(F) bear interest at a rate not to exceed such percent per 
annum on the amount of the principal obligation outstanding at 
any time as the Secretary finds necessary to meet the mortggige 
market, taking into consideration the yields on mortgages in 
the primary and secondary markets.". 
(13) Section 240(cX4) of such Act is amended to read as follows: 
"(4) bear interest at such rate as may be agreed upon by the 
mortgagor and the mortgagee;". 
(14) Section 241(bX3) of such Act is amended to read as follows: 
"(3) bear interest at such rate as may be agreed upon by the 
mortgagor and the mortgagee;". 
(15) Section 242(dX3XB) of such Act is amended to read as follows: 
"(B) bear interest at such rate as may be agreed upon by the 
mortgagor and the mortgagee.". 
(16) Section 1002(dX2) of such Act is amended to read as follows: 
"(2) bear interest at such rate as may be agreed upon by the 
mortgagor and the mortgagee, except that the Secretary may 
agree to a reasonable extension of the term of a mortgage, the 
maturity of which is limited by this paragraph to not more than 
10 years, if the Secretary determines that unusual or unfore-
seen circumstances make such extension necessary to avoid 
undue hardship to the mortgagor;". 
MINIMUM PROPERTY STANDARDS 
12 use 1735f-4. 
SEC. 405. (a) Section 526 of the National Housing Act is amended— 
(1) in the first sentence, by inserting ", other than manufac-
tured homes," after "housing"; 
(2) by adding the following new sentence at the eifd thereof: 
"Following the effective date of this sentence, the energy per-
formance requirements developed and established by the Secre-
tary under this subsection for newly constructed residential 
housing, other than manufactured homes, shall be at least as 
effective in performance as the energy performance require-
ments incorporated in the minimum property standards that 
were in effect under this subsection on September 30, 1982."; 
and 
(3) by inserting "(a)" after the section designation and adding 
at the end thereof the following new subsection: 
"(b) The Secretary may require that each property, other than a 
manufactured home, subject to a mortgage insured under this Act 
shall, with respect to health and safety, comply with one of the 
nationally recognized model building codes, or with a State or local 
building code based on one of the nationally recognized model 
building codes or their equivalent. The Secretary shall be responsi-
ble for determining the comparability of the State and local codes to 
such model codes and for selecting for compliance purposes an 
appropriate nationally recognized model building code where no 
such model code has been duly adopted or where the Secretary 
determines the adopted code is not comparable.". 
(b) The section heading of section 526 of such Act is amended to 
read as follows: "MINIMUM PROPERTY STANDARDS". 
12 u s e 1735f-8. 
TIME OF PAYMENT OF MORTGAGE INSURANCE PREMIUMS 
SEC. 406. Section 530 of the National Housing Act is amended-
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1211 
(1) by striking out "promptly upon their receipt from the 
borrower" and inserting in lieu thereof the following: (1) in the 
case of loans or mortgages respecting one- to four-family resi-
dences, promptly upon their receipt from the borrower, and (2) 
in any other case, promptly when due to the Secretary"; 
(2) by inserting "or due date, as appropriate," after "such 
receipt"; and 
(3) by inserting "or after the due date, as appropriate," before 
"and ending". 
MORTGAGE INSURANCE FOR AMERICAN SAMOA 
SEC. 407. (a) Section 9 of the National Housing Act is amended by 
12 USC 1706d. 
inserting "American Samoa," after "the Trust Territory of the 
Pacific Islands,". 
(b) Section 201(d) of such Act is amended by inserting "American 
12 USC 1707. 
Samoa," after "the Trust Territory of the Pacific Islands,". 
(c) Section 207(aX7) of such Act is amended by inserting "Ameri- 
12 USC 1713. 
can Samoa," after "the Trust Territory of the Pacific Islands,". 
ASSIGNMENT OF SECTION 221(g)(4) MORTGAGES TO GOVERNMENT 
NATIONAL MORTGAGE ASSOCIATION 
SEC. 408. Section 221(gX4) of the National Housing Act is amended 
12 USC 1715Z. 
by inserting "(A)" after the paragraph designation and by adding 
the following new subparagraph at the end thereof: 
"(B) In processing a claim for insurance benefits under this para-
graph, the Secretary may direct the mortgagee to assign, transfer, 
and deliver the original credit instrument and the mortgage secur-
ing it directly to the Government National Mortgage Association in 
lieu of assigning, transferring, and delivering the credit instrument 
and the mortgage to the Secretary. Upon the assignment, transfer, 
and delivery of the credit instrument and the mortgage to the 
Association, the mortgage insurance contract shall terminate and 
the mortgagee shall receive insurance benefits as provided in sub-
paragraph (A). The Association is authorized to accept such loan 
documents in its own name and to hold, service, and sell such loans 
as agent for the Secretary. The mortgagor's obligation to pay a 
service charge in lieu of a mortgage insurance premium shall 
continue as long as the mortgage is held by the Association or by the 
Secretary. The Secretary shall have the same authority with respect 
to mortgages assigned to the Secretary or the Association under this 
subparagraph as provided by section 223(c).". 
12 USC 1715n. 
Contract 
termination. 
TERMINATION OF SECTTION 221 BUY-BACK PROVISION 
SEC. 409. The first sentence of section 221(gX4XA) of the National 
Housing Act, as redesignated by section 408 of this Act, is amended 
by inserting after "this section" the following: "pursuant to a 
commitment to insure entered into before the effective date of this 
clause". 
12 USC 1715/. 
97 STAT. 1212 
PUBLIC LAW 98-181—NOV. 30, 1983 
Subpart 2—Single-Family Mortgage Insurance Programs 
12 use 1703. 
42 use 5401 
note. 
12 use 1707. 
12 use 1703. 
Post, pp. 1216, 
1217. 
12 use 1703. 
42 use 5403. 
TITLE I INSURANCE FOR EXISTING MANUFACTURED HOMES 
SEC. 415. Section 2(a) of the National Housing Act is amended by 
inserting the following before the last undesignated paragraph 
thereof: 
"The insurance authority provided under this section may be 
made available with respect to any existing manufactured home 
that has not been insured under this section if such home was 
constructed in accordance with the standards issued under the 
National Manufactured Housing Construction and Safety Standards 
Act of 1974 and it meets standards similar to the minimum property 
standards applicable to existing homes insured under title II.'. 
INCREASED TITLE I LOAN UMITS FOR MANUFACTURED HOMES AND LOTS 
SEC. 416. (a) Section 2(bXl) of the National Housing Act is 
amended— 
(1) in subparagraph (C), by striking out "$22,500" and all that 
follows through "modules)" and inserting in lieu thereof 
"$40,500"; 
(2) in subparagraph (D), by striking out "$35,000" and all that 
follows through "modules)" and inserting in lieu thereof 
"$54,000"; and 
(3) in subparagraph (E), by striking out "such an amount as 
may be necessary, but not exceeding $12,500," and inserting in 
lieu thereof "$13,500". 
O
t
)
) Section 2(bX2) of such Act is amended by striking out the last 
sentence and inserting in lieu thereof the following: "In other areas, 
the maximum dollar amounts specified in subsections (bXlXD) and 
(bXlXE) may be increased on an area-by-area basis to the extent the 
Secretary deems necessary, but not to exceed the percentage by 
which the maximum mortgage amount of a one-family residence in 
the area is increased by the Secretary under section 203(bX2).". 
REFINANCING MANUFACTURED HOMES UNDER TITLE I 
SEC. 417. Section 2(bX6) of the National Housing Act is amended 
by adding at the end thereof the following new subparagraph: 
"(C) The owner-occupant of a manufactured home or a home and 
lot which was purchased without assistance under this section but 
which otherwise meets the requirements of this section may refi-
nance such home or home and lot under this section if the home was 
constructed in accordance with standards established under section 
604 of the National Manufactured Housing Construction and Safety 
Standards Act of 1974.". 
COUNSEUNG FOR PERSONS ASSISTED UNDER TEMPORARY MORTGAGE 
ASSISTANCE PAYMENTS PROGRAM 
12 use 1715u. 
SEC. 418. Section 230(d) of the National Housing Act is amended 
by striking out ", to the extent practicable,". 
COOPERATIVE HOUSING 
12 use 1709. 
SEC. 419. Section 203(n) of the National Housing Act is amended— 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1213 
(1) in paragraph (1), by inserting the following before the 
period at the end of the second sentence: "or the construction of 
which was completed more than a year prior to the application 
for the mortgage insurance"; and 
(2) by striking out "nonprofit" in paragraph (2XA). 
MORTGAGE INSURANCE FOR CONDOMINIUM UNITS 
SEC. 420. (a) The first sentence of section 234(c) of the National 
Housing Act is amended by striking out "(2)" and all that follows 
through the period at the end thereof and inserting in lieu thereof 
the following: "and (2) at least 80 percent of the units in .the project 
covered by mortgages insured under this title are occupied by the 
mortgagors or comortgagors.". 
(b) The third sentence of section 234(c) of such Act is amended by 
striking out "(A)" and all that follows through "$25,000" the second 
place it appears and inserting in lieu thereof the following: "(A) 
involve a principal obligation in an amount not to exceed the 
maximum principal obligation of a mortgage which may be insured 
in the area pursuant to section 203(bX2)". 
(c) Section 234 of such Act is amended by adding at the end 
thereof the following: 
"(k) With respect to a unit in any project which was converted 
from rental housing, no insurance may be provided under this 
section unless (1) the conversion occurred more than one year prior 
to the application for insurance, (2) the mortgagor or comortgagor 
was a tenant of that rental housing, or (3) the conversion of the 
property is sponsored by a bona fide tenants organization represent-
ing a majority of the households in the project.". 
12 use 1715y. 
Post, pp. 1216, 
1217. 
SINGLE-FAMILY MORTGAGE INSURANCE ON HAWAIIAN HOME LANDS 
SEC. 421. Title II of the National Housing Act is amended by 
adding at the end thereof the following new section: 
SINGLE-FAMILY MORTGAGE INSURANCE ON HAWAIIAN HOME LANDS 
"SEC. 247. (a) The Secretary, subject to such conditions as the 
Secretary may prescribe, may insure under any provision of this 
title that authorizes such insurance, a mortgage covering a property 
upon which there is located a one- to four-family residence, without 
regard to any limitation in this Act relating to marketability of title 
or any other limitation in this Act that the Secretary determines is 
contrary to promoting the availability of such insurance on Hawai-
ian home lands, if— 
"(1) the mortgage is executed by a native Hawaiian on prop-
erty located within Hawaiian home lands covered under a 
homestead lease issued under section 207(a) of the Hawaiian 
Homes Commission Act, 1920, or under the corresponding provi-
sion of the Constitution of the State of Hawaii adopted under 
section 4 of the Act entitled "An Act to provide for the admis-
sion of the State of Hawaii into the Union", approved March 18, 
1959 (73 Stat. 5); 
"(2) the property will be used as the principal residence of the 
Mortgagor; and 
"(3) the Department of Hawaiian Home Lands of the State of 
Hawaii (A) is a comortgagor; (B) guarantees to reimburse the 
1
2 use 
1715Z-12. 
48 use 701. 
48 use note 
prec. 491. 
97 STAT. 1214 
PUBLIC LAW 98-181—NOV. 30, 1983 
Definitions. 
48 use 698. 
48 use note 
prec. 491. 
Secretary for any mortgage insurance claim paid in connection 
with a property on Hawaiian home lands; or (C) offers other 
security acceptable to the Secretary. 
"(b) Notwithstanding any other provision of this Act, the Secre-
tary may, with respect to mortgages eligible for insurance under 
subsection (a), insure and make commitments to insure advances 
made during construction if the Secretary determines that the 
proposed construction is otherwise acceptable and that no feasible 
financing alternative is available. 
"(c) For purposes of this section: 
"(1) The term 'native Hawaiian' means any descendant of not 
less than one-half part of the blood of the races inhabiting the 
Hawaiian Islands before January 1, 1778. 
"(2) The term 'Hawaiian home lands' means all lands given 
the status of Hawaiian home lands under section 204 of the 
Hawaiian Homes Commission Act, 1920, or under the corre-
sponding provision of the Constitution of the State of Hawaii 
adopted under section 4 of the Act entitled "An Act to provide 
for the admission of the State of Hawaii into the Union", 
approved March 18, 1959 (73 Stat. 5).". 
SINGLE FAMILY MORTGAGE INSURANCE ON INDIAN RESERVATIONS 
SEC. 422. Title II of the National Housing Act is amended by 
adding at the end thereof the following new section: 
12 use 
1715Z-13. 
SINGLE FAMILY MORTGAGE INSURANCE ON INDIAN RESERVATIONS 
"SEC. 248. (a) The Secretary, subject to such special conditions as 
the Secretary may prescribe, may insure under any provision of this 
title that authorizes such insurance, a mortgage covering a property 
upon which there is located a one- to four-family residence, without 
regard to any limitation in this Act relating to marketability of title 
or any other limitation in this Act that the Secretary determines is 
contrary to promoting the availability of such insurance on Indian 
reservations if the mortgage (1) is executed by an Indian tribe and 
the property is located on trust or otherwise restricted lands; or (2) is 
executed by a member of an Indian tribe who will use the property 
as a principal residence and the property is on trust lands or 
otherwise restricted land. 
"(b) Notwithstanding any other provision of this Act, with respect 
to mortgages covering a property upon which there is located a one-
to four-family residence— 
"(1) the Secretary may insure and make commitments to 
insure under this title pursuant to this section advances made 
during construction where the Secretary determines that the 
proposed construction is otherwise acceptable and meets an 
applicable tribal or national model building code, and that no 
feasible financing alternative is available; 
"(2) the applicable percentage limitation on the amount of the 
principal obligation of a mortgage based on the appraised value 
or replacement cost, as appropriate, of a one- to four-family 
owner-occupied residence contained in this title shall apply in 
the case of all mortgages insured pursuant to this section 
without regard to whether the residences are owner-occupied 
where the residences are owned by the tribe; and 
PUBLIC LAW 98-181—NOV. 30, 1983 
"(3XA) the Secretary may require an Indian tribe, only as a 
condition of insurance made under this title pursuant to this 
section, to pledge income from tribal resources or income from 
tribal assets not subject to a restriction by the Secretary of the 
Interior or pledge grants under title I of the Housing and 
Community Development Act of 1974 or any other Federal 
grant program administered by the Secretary of Housing and 
Urban Development to be used to reimburse the Secretary for 
any mortgage insurance claims paid in connection with resi-
dences insured pursuant to this section; or 
"(B) in the case of an individual Indian mortgagor, the Secre-
tary may require a pledge of his or her share of distributed 
income from tribal resources or income from tribal assets, 
excluding any Federal grants received by the tribe. 
"(c) The Secretary may not refuse to insure a mortgage under this 
section to an individual home purchaser because there is no distrib-
uted tribal or trust fund income attributable to that purchaser. 
"(d) Before making any commitment to insure a mortgage under 
this section with respect to property located on tribal or trust land, 
the Secretary shall require a showing by the tribe that it has 
adopted eviction procedures to be used in the event of a default. 
"(e) A mortgage insured under this section may be assumed, 
subject to credit approval by the lender and the consent of the tribe 
to an assumption of the existing lease or the grant of a new lease, 
without an adjustment of the interest rate. Any other sale of a 
property subject to a mortgage insured under this section may be 
made only if a new lease is granted, except that a sale following a 
foreclosure may be accompanied by an assumption of the lease with 
the consent of the tribe. 
"(fXD The Secretary shall make information regarding the status 
and payment history of loans insured under this section available to 
local credit bureaus and prospective creditors. Prior to accepting 
assignment of a mortgage, the Secretary shall require mortgagees to 
submit documentation that mortgagors have been counseled in a 
face-to-face interview, informed of the provisions of this subsection 
or other available assistance, and provided with the names and 
addresses of officials of the Department of Housing and Urban 
Development to whom further communications shall be addressed. 
"(2) Notwithstanding the requirement for conveyance of title 
under section 204, a mortgagee under this section shall be entitled to 
receive the benefit of insurance under this section in the case of a 
mortgage which is more than 90 days in default upon conveyance of 
the lease agreement and the mortgage documents. 
"(3) In the event that any default is cured, the Secretary shall 
seek to reinstate the loan with the mortgagee or another mortgagee. 
For purposes of this paragraph, the Secretary may provide appropri-
ate financial incentives to reinstate the loan commensurate with 
sound management of the insurance fund. 
"(4) If the Secretary determines that a mortgagor is not making a 
good-faith effort to cure a default, and that trust fund or tribal 
income is available under subsection (bX3XB), the Secretary shall 
commence proceedings for the garnishment of the mortgagor's dis-
tributed share of tribal or trust fund income in order to collect loan 
payments that are past due. Proceedings under this paragraph maj 
be instituted in a tribal court, court of competent jurisdiction desig-
nated by the tribe, or Federal district court. 
97 STAT. 1215 
Grants. 
42 use 5301. 
Eviction 
procedures. 
Loan 
information, 
availability. 
Mortgagee 
counseling. 
12 use 1710. 
Garnishment. 
97 STAT. 1216 
PUBLIC LAW 98-181—NOV. 30, 1983 
Foreclosure 
proceedings. 
Premium 
charge. 
Report to 
Congress. 
12 u s e 1709. 
Recommenda-
tions to 
Congress. 
Definitions. 
31 u s e 6701 et 
seq. 
43 u s e 1601 
note. 
"(b) If the Secretary determines such action is necessary to protect 
the insurance fund from undue loss, the Secretary may initiate 
foreclosure proceedings with respect to any mortgage acquired 
under this subsection. Such proceeding may take place in a tribal 
court, a court of competent jurisdiction, or Federal district court. 
Any such court shall have jurisdiction to convey to the Secretary the 
remaining life of a lease on the real property and to order eviction of 
the delinquent mortgagor. 
"(g) In the administration of this section, the Secretary shall 
establish a premium charge for insurance that will be sufficient to 
cover the full costs of the mortgage insurance program under this 
section, except that such charge may not exceed 3 percent per 
annum of the principal amount of the mortgage outstanding at any 
time. Not later than September 30, 1984, the Secretary shall deter-
mine and report to the Congress on the feasibility of eliminating any 
excess amount of the premium under this section over the premium 
under section 203. In the event such premiums are not sufficient to 
cover the full costs of the mortgage insurance program under this 
section, the Secretary shall make recommendations to the Congress 
about changes to the program. 
"(h) For purposes of this section: 
"(1) The term 'Indian tribe' means any Indian or Alaska 
native tribe, band, nation, or other organized group or commu-
nity of Indians or Alaska natives recognized as eligible for the 
services provided to Indians or Alaska natives by the Secretary 
of the Interior because of its status as such an entity, or that is 
an eligible recipient under chapter 67 of title 31, United States 
Code. 
"(2) The term 'trust or otherwise restricted land' means (A) 
that area of land, as defined by the Secretary of the Interior, 
over which an Indian tribe is recognized by the United States as 
having governmental jurisdiction; (B) land held in trust for the 
benefit of any Indian tribe or individual or held by any Indian 
tribe or individual subject to a restriction by the United States 
against alienation; or (C) land acquired by Alaska natives under 
the Alaska Native Claims Settlement Act or any other land 
acquired by Alaska natives pursuant to statute by virtue of 
their unique status as Alaska natives.". 
TREATMENT OF FEDERAL HOUSING ADMINISTRATION SINGLE FAMILY 
PREMIUMS 
12 use 1709. 
SEC. 423. (a) Section 203 of the National Housing Act is amended 
by inserting the following new subsection after subsection (c): 
"(d) Notwithstanding any provision of this title governing maxi-
mum mortgage amounts for insuring a mortgage secured by a one-
to four-family dwelling, the maximum amount of the mortgage 
determined under any such provision may be increased by the 
amount of the mortgage insurance premium paid at the time the 
mortgage is insured.'. 
(bXD The first sentence of section 203(bX2) of such Act is amended 
by striking out the following: ": Provided, That the foregoing maxi-
mum mortgage amounts may be increased by the amount of the 
mortgage insurance premium paid at the time the mortgage is 
insured . 
12 use 1715e. 
(2) Section 213(bX2) of such Act is amended by striking out the 
following: ": Provided further. That the foregoing maximum mort-
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1217 
gage amounts may be increased by the amount of the mortgage 
insurance premium paid at the time the mortgage is insured". 
(3) Section 221(dX2XA) of such Act is amended by striking out the 
following: ": Provided further, That the foregoing maximum mort-
gage amounts may be increased by the amount of the mortgage 
insurance premium paid at the time the mortgage is insured". 
(4) Clause (A) of the third sentence of section 234(c) of such Act is 
amended by striking out the following: ": Provided, That the forego-
ing maximum mortgage amounts may be increased by the amount 
of the mortgage insurance premium paid at the time the mortgage is 
insured". 
(5) Section 235(i) of such Act is amended— 
(A) by striking out in paragraph (3XB) the following: ": Pro-
vided, That the foregoing maximum mortgage amounts may be 
increased by the amount of the mortgage insurance premium 
paid at the time the mortgage is insured"; 
(B) by striking out in paragraph (3XC) the following: ": Pro-
vided, That the foregoing maximum mortgage amounts may be 
increased by the amount of the mortgage insurance premium 
paid at the time the mortgage is insured"; and 
(C) by striking out in paragraph (3XD) the following: ": Pro-
vided, That the foregoing maximum mortgage amounts may be 
increased by the amount of the mortgage insurance premium 
paid at the time the mortgage is insured". 
(c) The amendments made by this section shall take effect only if 
the Secretary of Housing and Urban Development determines that 
the program of advance payment of insurance premiums, with 
specific regard to the effect of the provisions authorized by the 
amendments made by such sections, is actuarially sound. 
12 use 1715/. 
12 use 1715y. 
12 use 1715z. 
Effective date. 
12 use 1709 
note. 
CHANGE IN MAXIMUM LOAN-TO-VALUE RATIO FOR MODESTLY PRICED 
SINGLE FAMILY HOMES 
SEC. 424. (a) Section 203(bX2) of the National Housing Act is 
amended— 
(1) by striking out "(except as provided in the next to the last 
sentence of this paragraph)" in the first sentence and inserting 
in lieu thereof the following: "(except as otherwise provided in 
this paragraph)"; and 
(2) by inserting after the first sentence the following new 
sentence: "If the mortgage to be insured under this section 
covers property on which there is located a one- to four-family 
residence to be occupied as the principal residence of the owner, 
and the appraised value of the property, as of the date the 
mortgage is accepted for insurance, does not exceed $50,000, the 
principal obligation may be in an amount not to exceed 97 
percent of such appraised value.". 
(b) The amendment made by subsection (a) shall take effect only if 
the Secretary finds and reports to the Congress that such amend-
ment, taking into account the higher loan-to-value ratio resulting 
from the advance payment of mortgage insurance premiums, will 
not adversely affect the actuarial soundness of the Federal Housing 
Administration mortgage insurance program. 
12 use 1709. 
Effective date. 
Report to 
eongress. 
12 use 1709 
note. 
1 1 - 1 9 4 O - 85 — 
40 
QL 3 
97 STAT. 1218 
PUBLIC LAW 98-181—NOV. 30, 1983 
NONOCCUPANT SINGLE FAMILY MORTGAGORS 
12 use 1709. 
SEC. 425. Section 203(bX8) of the National Housing Act is amended 
by striking out all that follows "an amount equal to" through 
"subsection." and inserting in lieu thereof the following: "the lesser 
of (A) the otherwise applicable maximum dollar amount prescribed 
under paragraph (2), or (B) 85 percent of the appraised value of the 
property as of the date the mortgage is accepted for insurance:". 
PAYMENT OF CLAIMS WITHOUT ACQUISITION OF TITLE 
12 use 1710. 
SEC. 426. (a) Section 204(a) of the National Housing Act is 
amended— 
(1) by striking out "Upon such conveyance and assignment" 
in the second sentence and inserting in lieu thereof the follow-
ing: "The Secretary is also authorized, in accordance with such 
regulations as the Secretary may prescribe, to make the benefit 
of the insurance as hereinafter provided available to the mort-
gagee, notwithstanding any provision of this section requiring 
conveyance of title to the property to the Secretary, (1) upon 
sale of the insured property at foreclosure, where such sale is 
for at least the fair market value of the property (with appropri-
ate adjustments), as determined by the Secretary, and (2) upon 
the assignment to the Secretary of all claims referred to in 
clause (2) of the preceding sentence. The payment of benefits 
under the preceding sentence may be made for any mortgage 
insured pursuant to a commitment to insure issued on or after 
the effective date of this sentence and, with the approval of the 
mortgagee, for any mortgage insured pursuant to a commit-
ment issued before that date. Upon the conveyance and assign-
ment referred to in the first sentence of this section or the sale 
and assignment referred to in the second sentence of this 
subsection,"; and 
(2) by striking out "and any amount" and all that follows 
through the colon preceding the first proviso of the final sen-
tence and inserting in lieu thereof the following: "any amount 
received as rent or other income from the property, less reason-
able expenses incurred in handling the property, after either of 
such dates, and, in the case of insurance benefits paid in 
accordance with the second sentence of this section, any amount 
received upon the foreclosure sale of the property:". 
(b) Section 204(j) of such Act is amended by inserting after "under 
section 203" the following: "(other than a mortgagee receiving 
insurance benefits under the second sentence of subsection (a))" 
12 use 1735b. 
38 use 1801 et 
seq. 
STRUCTURAL DEFECTS IN VETERANS 
ADMINISTRATION-APPROVED, 
FEDERAL HOUSING ADMINISTRATION-INSURED NEW HOMES 
SEC. 427. Section 518(a) of the National Housing Act is amended 
by striking out "approved for mortgage insurance prior to the 
beginning of construction which he finds" and inserting in lieu 
thereof the following: "that, before the beginning of construction, 
was approved for mortgage insurance under this Act or for 
guaranty, insurance, or a direct loan under chapter 37 of title 38, 
United States Code, and that the Secretary finds". 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1219 
REINSURANCE DEMONSTRATION PROGRAM 
SEC. 428. (a) Title II of the National Housing Act is amended by 
adding at the end thereof the following: 
"REINSURANCE CONTRACTS 
"SEC. 249. (a) The purpose of this section is to authorize a demon-
stration mortgage reinsurance program designed to test the feasibil-
ity of entering into reinsurance contracts with private mortgage 
insurers in order to reduce Government risk and administrative 
costs, and to speed mortgage processing. The Secretary shall limit 
the demonstration under this section to not more than two adminis-
trative regions of the Department of Housing and Urban Develop-
ment, and shall assure that the program is in the financial interest 
of the Government and will not result in loss of employment by any 
employees of the Department of Housing and Urban Development 
before September 30, 1985. The aggregate number of mortgages 
insured under this section in any administrative region of the 
Department of Housing and Urban Development in any fiscal year 
may not exceed 10 percent of the aggregate number of mortgages 
and loans insured by the Secretary under this title in such region 
during the preceding fiscal year. 
"(b) Notwithstanding any other provision of this Act inconsistent 
with this section, the Secretary is authorized to provide mortgsige 
insurance with respect to one- to four-family dwellings under sec-
tions 203(b), 234, and 245 through reinsurance contracts with private 
mortgage insurance companies which have been determined to be 
qualified insurers under section 302(bX2XC). Such contracts shall 
require private mortgage insurance companies to— 
"(1) assume a percentage of loss on any mortgage insured 
pursuant to section 203(b), 234, or 245 covering a one- to four-
family dwelling, which percentage of loss shall be set forth in 
the reinsurance contract; and 
"(2) carry out (under appropriate delegation) such credit ap-
proval, appraisal, inspection, commitment, claims processing, 
property disposition, or other function as the Secretary pursu-
ant to regulations, shall approve as consistent with the purposes 
of this section. 
"(c) Any contract of reinsurance under this section shall contain 
such provisions relating to the sharing of premiums on a sound 
actuarial basis, establishment of insurance reserves, manner of 
calculating claims on such insurance, conditions with respect to 
foreclosure, handling and disposition of property prior to claim or 
settlement, right of assignees, and other similar matters as the 
Secretary may prescribe pursuant to regulations. Pursuant to a 
contract under this section, a private mortgage insurance company 
shall endorse loans for insurance and take such other actions on 
behalf of the Secretary and in the Secretary's name as the Secretary 
may authorize. 
"(d) The Secretary shall require any private mortgage insurance 
company participating in the program under this section to provide 
reinsurance for those mortgages offered by the Secretary for inclu-
sion in the program.". 
(b) The Secretary of Housing and Urban Development shall evalu-
ate the reinsurance program under section 249 of the National 
Housing Act and, not later than March 1, 1985, submit to the 
12 use 
1715Z-14. 
12 u s e 1709, 
1715y, 1715Z-10. 
12 u s e 1717. 
Report to 
eongress. 
12 u s e 1715Z-14 
note. 
Supra. 
97 STAT. 1220 
PUBLIC LAW 98-181—NOV. 30, 1983 
Congress a report setting forth the results of such evaluation. Such 
report shall include an evaluation of the possible effect of a reinsur-
ance program on the characteristics of the pool of mortgages 
remaining wholly under the applicable insurance funds and the 
actuarial soundness of such funds under such conditions. 
Subpart 3—Multifamily and Other Mortgage Insurance Programs 
DISCRETIONARY AUTHORITY TO REGULATE RENTS OR CHARGES 
12 use 1713. 
SEC. 431. (a) Section 207(bX2) of the National Housing Act is 
amended— 
(1) by striking out "any other mortgagor approved by the 
Secretary" and all that follows through "reasonable return on 
f 
the investment." and inserting in lieu thereof the following: 
"any other mortgagor approved by the Secretary. The Secretary 
may, in the Secretary's discretion, require any such mortgagor 
to be regulated or restricted as to rents or sales, charges, capital 
structure, rate of return, and methods of operation so as to 
provide reasonable rentals to tenants and a reasonable return 
on the investment. Any such regulations or restrictions shall 
continue for such period or periods as the Secretary, in the 
Secretary's discretion, may require, including until the termina-
tion of all obligations of the Secretary under the insurance and 
during such further period of time as the Secretary shall be the 
owner, holder, or reinsurer of the mortgage."; 
(2) by striking out "render effective the regulations or restric-
tions" and inserting in lieu thereof "render effective any such 
regulations or restrictions"; and 
(3) by striking out "and directed" in the second sentence of 
the first undesignated paragraph. 
12 use I715y. 
(b) Section 234(dX2) of such Act is amended— 
(1) by striking out "shall be regulated or restricted by the 
Secretary" and inserting in lieu thereof "may, in the Secre-
tary's discretion, be regulated or restricted"; and 
(2) by striking out "the regulation and restriction" and insert-
ing in lieu thereof "any such regulation or restriction". 
12 use 1713 
(c) The amendments made in this section shall not apply with 
^°^- 
respect to mortgages insured by the Secretary of Housing and 
Urban Development before the date of the enactment of this Act. 
REMOVAL OF REFINANCING UMITATIONS ON CERTAIN MULTIFAMILY 
PROJECTS 
12 use 1715k. 
SEC 432. (a) Section 220(dX3XBXii) of the National Housing Act is 
amended by striking out "Provided further," the first time it ap-
pears and all that follows through "property or project:". 
12 use 1715/. 
(b) Section 221(dX3Xiii) of such Act is amended— 
(1) by striking out "Provided, That" and all that follows 
through "property or project:"; and 
(2) by striking out "further" the first time it appears, 
icj Section 221(dX4Xiv) of such Act is amended— 
(1) by striking out "Provided, That" and all that follows 
through "property or project:"; and 
(2) by striking out "further" the first time it appears. 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1221 
UMITATION ON PREPAYMENT OF MORTGAGES ON MULTIFAMILY RENTAL 
HOUSING 
SEC. 433. Title II of the National Housing Act is amended bv 
adding at the end thereof the following: 
"UMITATION ON PREPAYMENT OF MORTGAGES ON MULTIFAMILY 
RENTAL HOUSING 
"SEC. 250. (a) During any period in which an owner of a multi-
family rental housing project is required to obtain the approval of 
the Secretary for prepayment of the mortgage, the Secretary shall 
not accept an offer to prepay the mortgage on such project unless— 
"(1) the Secretary has determined that such project is no 
longer meeting a need for rental housing for lower income 
families in the area or that the needs of lower income families 
in such project can more efficiently and effectively be met 
through other Federal housing assistance taking into accotmt 
the remaining time the project could meet such needs; 
"(2) the Secretary (A) has determined that the tenants have 
been notified of the owner's request for approval of a prepay-
ment; (B) has provided the tenants with an opportunity to 
comment on the owner's request; and (C) has taken such com-
ments into consideration; and 
"(3) the Secretary has ensured that there is a plan for provid-
ing relocation assistance for adequate, comparable housing for 
any lower income tenant who will be displaced as a result of the 
prepayment and withdrawal of the project from the program. 
"(b) In the case of a project assisted under section 236 or the 
proviso to section 221(dX5) of this title, section 101 of the Housing 
and Urban Development Act of 1965, or section 202 of the Housing 
Act of 1959 where the owner has the right to prepay the mortgage 
covering the assisted project without the Secretary's approval, the 
Secretary shall give a priority for additional assistance under sec-
tion 8 of the United States Housing Act of 1937 and section 201 of 
the Housing and Community Development Amendments of 1978 to 
tenants and applicants to become tenants of the project, i
f
— 
"(1) funds to provide such additional assistemce are available; 
and 
"(2) the Secretary determines that making such additional 
assistance available to the project is necessary to prevent the 
owner from prepaying the mortgage. 
"(c) Any owner of a multifamily rental housing project referred to 
in subsection (b) who receives additional assistance under section 8 
of the United States Housing Act of 1937 under the priority estab-
lished in subsection (b) shall— 
"(1) fully utilize the assistance which is available; 
"(2) grant a priority to applicants to become tenants who have 
the lowest incomes; and 
"(3) maintain the low-income character of the project for a 
period at least equal to the remaining term of the project 
mortgage to the extent that assistance is provided. 
"(d) For purposes of this section, the term 'lower income families' 
has the meaning given such term in section 3(bX2) of the United 
States Housing Act of 1937.". 
12 use 
1715Z-15. 
12 u s e 1715Z-1. 
12 u s e 1715/. 
12 u s e 1701s, 42 
u s e 1451. 
12 u s e 1701q. 
42 u s e 1437f. 
12 u s e 1715Z-1 
and note, 
1715z-la. 
42 u s e 1437f. 
42 u s e 1437a. 
97 STAT. 1222 
PUBLIC LAW 98-181—NOV. 30, 1983 
12 u s e 1715Z-9. 
42 u s e 1437a. 
ASSUMPTION OF LOSS UNDER MULTIFAMILY CO-INSURANCE 
SEC. 434. Section 244(g) of the National Housing Act is amended— 
(1) in paragraph (1), by striking out "the mortgagee is a pubhc 
housing agency or an insured depository institution and"; and 
(2) by striking out paragraph (5) and inserting in lieu thereof 
the following new paragraph: 
"(5) As used in this subsection, the term 'public housing agency' 
has the meaning given such term in section 3(bX6) of the United 
States Housing Act of 1937.". 
MORTGAGE INSURANCE FOR MANUFACTURED HOME PARKS FOR THE 
ELDERLY 
SEC. 435. The first sentence of the second undesignated paragraph 
12 use 1713. 
of section 207(b) of the National Housing Act is amended by striking 
out "no mortgage shall be insured hereunder" and inserting in lieu 
thereof the following: "the Secretary may not insure any mortgage 
under this section (except a mortgage with respect to a manufac-
tured home park designed exclusively for occupancy by elderly 
persons)". 
MORTGAGE INSURANCE FOR PUBUC HOSPITALS 
12 use 1715Z-7. 
SEC. 436. Section 242 of the National Housing Act is amended— 
(1) by inserting "public facility," in subsection (bXlXC) after 
"which is a"; and 
(2) by inserting the following before the period at the end of 
subsection (f): ", and, in the case of public hospitals, to encour-
age programs that are undertaken to provide essential health 
care services to all residents of a community regardless of 
ability to pay". 
MORTGAGE INSURANCE FOR BOARD AND CARE HOMES 
12 use 1715W. 
SEC. 437. (a) Section 232(aX2) of the National Housing Act is 
amended by inserting "and board and care homes" after "intermedi-
ate care facilities", 
(b) Section 232(b) of such Act is amended— 
(1) by striking out the period at the end of paragraph (3) and 
inserting in lieu thereof'; and"; and 
(2) by adding the following new paragraph at the end thereof: 
"(4) the term 'board and care home' means any residential 
facility providing room, board, and continuous protective over-
sight that is regulated by a State pursuant to the provisions of 
42 use I382e. 
section 1616(e) of the Social Security Act, so long as the home is 
located in a State that, at the time of an application is made for 
insurance under this section, has demonstrated to the Secretary 
that it is in compliance with the provisions of such section 
1616(e).". 
(cXD Section 232(d) of such Act is amended by inserting "or a 
board and care home" after "intermediate care facility" the second 
place it appears. 
(2) Section 232(dX4) of such Act is amended— 
(A) by striking out "The" in the first sentence and inserting 
in lieu thereof the following: "(A) With respect to nursing 
homes and intermediate care facilities and combined nursing 
home and intermediate care facilities, the"; 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1223 
(B) by striking out "(A)" and "(B)" in the first sentence and 
inserting in lieu thereof "(i)" and "(ii)", respectively; and 
(C) by adding the following new subparagraph at the end 
thereof: 
"(B) With respect to board and care homes, the Secretary 
shall not insure any mortgage under this section unless he has 
received from the appropriate State licensing agency a state-
ment verifying that the State in which the home is or is to be 
located is in compliance with the provisions of section 1616(e) of 
the Social Security Act.". 
(d) Section 232(g) of such Act is amended by striking out "Health, 
Education, and Welfare" and inserting in lieu thereof "Health and 
Human Services". 
(e) Section 232(h) of such Act is amended by striking out "Health, 
Education, and Welfare" and inserting in lieu thereof "Health and 
Human Services". 
(fKD Section 232(iXl) of such Act is amended— 
(A) by inserting "or to board and care homes" after "interme-
diate care facilities"; 
(B) by inserting the following after "Association": "(or any 
subsequent edition specified by the Secretary of Health and 
Human Services)"; 
(C) by striking out "Health, Education, and Welfare" and 
inserting in lieu thereof "Health and Human Services"; and 
(D) by inserting the following before the period at the end 
thereof: "or as mandated by a State under the provisions of 
section 1616(e) of such Act". 
(2) Section 232(iX2) of such Act is amended— 
(A) by striking out "and" at the end of subparagraph (D); 
(B) by striking out the period at the end of subparagraph (E) 
and inserting in lieu thereof "; and"; and 
(C) by adding the following new subparagraph at the end 
thereof: 
"(F) in the case of board and care homes, be made with 
respect to such a home located in a State with respect to which 
the Secretary has received from the appropriate State licensing 
agency a statement verifying that the State in which the home 
is or is to be located is in compliance with the provisions of 
section 1616(e) of the Social Security Act.". 
(g) The section heading of section 232 of the National Housing Act 
is amended to read as follows: "Mortgage Insurance for Nursing 
Homes, Intermediate Care Facilities, and Board and Care Homes'. 
42 u s e 1382e. 
12 u s e 1715w. 
42 u s e 1382e. 
Subpart 4—Insurance of Alternative Mortgage Instruments 
INDEXED MORTGAGES 
SEC. 441. (a) Section 245(a) of the National Housing Act is 
amended— 
(1) in the first sentence, by inserting after "income" the 
following: "or with monthly payments and outstanding balances 
adjusted by a percentage change in a selected price index"; and 
(2) in the second sentence, by striking out "subsection (b)" and 
inserting in lieu thereof "subsections (b) and (c)". 
(b) Section 245 of such Act is amended by redesignating subsection 
(c) as subsection (d) and by inserting the following new subsection 
after subsection (b): 
12 use 
1715Z-10. 
97 STAT. 1224 
PUBLIC LAW 98-181—NOV. 30, 1983 
12 u s e 1709. 
Regulations. 
Post, p. 1225. 
12 use 
1715Z-10. 
"(c) Notwithstanding the provisions of subsection (a), the Secre-
tary may insure under any provision of this title a mortgage or loan 
that meets the requirements of the first sentence of subsection (a) 
and that has provisions permitting adjustment of monthly payments 
and outstanding principal according to changes or percentages of 
changes in a selected price index if the Secretary determines— 
"(1) the principal obligation of the mortgage or loan initially 
does not exceed the percentage of the initial appraised value of 
the property specified in section 203(b) as of the date the 
mortgage or loan is accepted for insurance; and 
"(2) the monthly pa)Tnents and principal obligation of the 
mortgage or loan thereafter will not at any time be increased at 
a rate greater than the percentage change in the price index 
stipulated in the initial mortgage or loan contract. 
In carrying out this subsection, the Secretary shall give a priority to 
mortgages executed by mortgagors who, as determined by the Secre-
tary, have not owned dwelling units within the preceding 3 years. 
The Secretary shall, not later than March 31, 1984, prescribe regula-
tions establishing 
guidelines governing 
mortgages and loans 
described in this subsection and shall, to the extent practicable, 
conduct a demonstration program to insure mortgages and loans in 
accordance with this subsection during fiscal years 1984 and 1985. 
The aggregate number of mortgages and loans insured under this 
subsection, section 251, and section 252 in any fiscal year may not 
exceed 10 percent of the aggregate number of mortgages and loans 
insured by the Secretary under this title during the preceding fiscal 
year.". 
(c) The section heading of section 245 of such Act is amended to 
read as follows: "GRADUATED PAYMENT AND INDEXED MORTGAGES". 
GRADUATED PAYMENT MORTGAGES FOR MULTIFAMILY HOUSING 
SEC. 442. Section 245 of the National Housing Act, as amended in 
section 441, is amended by— 
(1) redesignating subsection (d) as subsection (e); and 
(2) inserting after subsection (c) the following new subsection: 
"(dXl) The Secretary may insure, under any provision of this title 
relating to multifamily housing projects, mortgages and loans with 
provisions of varying rates of amortization corresponding to antici-
pated variations in project income, to the extent the Secretary 
determines such mortgages or loans (A) have promise for expanding 
housing opportunities or meet special needs; (B) can be developed to 
include any safeguards for mortgagors, tenants, or purchasers that 
may be necessary to offset special risks of such mortgages; and (C) 
have a potential for acceptance in the private market. 
"(2) Notwithstanding any other provision of this title, the princi-
pal obligation of a mortgage or loan insured pursuant to this 
subsection— 
"(A) may not exceed initially the percentage of the initial 
appraised value or replacement cost of the property involved 
that is required by the provision of this title under which such 
property is insured; and 
"(B) thereafter (including all interest to be deferred and added 
to principal) may not at any time be scheduled to exceed 100 
percent of the projected value of such property. 
"(3) For purposes of this subsection, the projected value of a 
property shall be calculated by the Secretary by increasing the 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1225 
initial appraised value of such property at a rate not in excess of 2.5 
percent per annum.". 
ADJUSTABLE RATE MORTGAGES FOR SINGLE FAMILY HOUSING 
SEC. 443. Title II of the National Housing Act is amended by 
adding at the end thereof the following new section: 
ADJUSTABLE RATE SINGLE FAMILY MORTGAGES 
"SEC. 251. (a) The Secretary may insure under any provision of 
this title a mortgage involving property upon which there is located 
a dwelling designed principally for occupancy by one to four fami-
lies, where the mortgage provides for periodic adjustments by the 
mortgagee in the effective rate of interest charged. Such interest 
rate adjustments may be accomplished through adjustments in the 
monthly pajnnent amount, the outstanding principal balance, or the 
mortgage term, or a combination of these factors, except that in no 
case may any extension of a mortgage term result in a total term in 
excess of 40 years. Adjustments in the effective rate of interest shall 
correspond to a specified national interest rate index approved in 
regulations by the Secretary, information on which is readily acces-
sible to mortgagors from generally available published sources. 
Adjustments in the effective rate of interest shall (1) be made on an 
annual basis; (2) be limited, with respect to any single interest rate 
increase, to no more than 1 percent on the outstanding loan balance; 
and (3) be limited to a maximum increase of 5 percentage points 
above the initial contract interest rate over the term of the 
mortgage. 
"(b) The Secretary shall issue regulations requiring that the 
mortgagee make available to the mortgagor, at the time of loan 
application, a written explanation of the features of the adjustable 
rate mortgage, including a hypothetical pajonent schedule that 
displays the maximum potential increases in monthly payments to 
the mortgagor over the first 5 years of the mortgage term. 
"(c) The aggregate number of mortgages and loans insured under 
this section, section 245(c), and section 252 in any fiscal year may 
not exceed 10 percent of the aggregate number of mortgages and 
loans insured by the Secretary under this title during the preceding 
fiscal year.". 
12 use 
1715Z-16. 
Information 
accessibility. 
Regulations. 
Ante, p. 1223. 
Infra. 
SHARED APPRECIATION MORTGAGES FOR SINGLE FAMILY HOUSING 
SEC. 444. Title II of the National Housing Act is amended by 
adding at the end thereof the following new section: 
SHARED APPRECIATION MORTGAGES FOR SINGLE FAMILY HOUSING 
"SEC. 252. (a) Notwithstanding any provision of this title that is 
inconsistent with this section, the Secretary may insure, under any 
provision of this title providing for insurance of mortgages on 
properties upon which there is located a dwelling designed princi-
pally for occupancy by one to four families, a mortgage secured by a 
first lien on such a property or on the stock allocated to a dwelling 
unit in a residential cooperative housing corporation, which— 
"(1) provides for the mortgagee to share in a predetermined 
percentage of the property's or stock's net appreciated value; 
12 use 
1715Z-17. 
97 STAT. 1226 
PUBLIC LAW 98-181—NOV. 30, 1983 
"Net 
appreciated 
value." 
Ante, p. 1218. 
Consumer 
protections and 
disclosure 
requirements. 
Ante, pp. 1223, 
1225. 
"(2) bears interest at a rate which meets criteria prescribed by 
the Secretary; 
"(3) provides for amortization over a period of not to exceed 30 
years, but the actual term of the mortgage (excluding any 
refinancing) may be not less than 10 nor more than 30 years, 
and contains such provisions relating to refinancing of the 
principal balance of the mortgage and any contingent deferred 
interest as the Secretary may provide; and 
"(4) meets such other conditions as the Secretary may require 
by regulation. 
"(b) The mortgagee's share of a property's or stock's net appre-
ciated value shall be payable upon sale or transfer (as defined by the 
Secretary) of the property or stock or payment in full of the mort-
gage, whichever occurs first. For purposes of this section, the term 
net appreciated value' means the amount hy which the sales price 
of the property or stock (less the mortgagor s selling costs) exceeds 
the value of the property or stock at the time the commitment to 
insure is issued (with adjustments for capital improvements stipu-
lated in the loan contract). If there has been no sale or transfer at 
the time the mortgagee's share of net appreciated value becomes 
payable, the sales price for purposes of this section shall be deter-
mined by means of an appraisal conducted in accordance with 
procedures approved by the Secretary and provided for in the 
mortgage. 
"(c) In the event of a default, the mortgagee shall be entitled to 
receive the benefits of insurance in accordance with section 204(a), 
but such insurance benefits shall not include the mortgagee's share 
of net appreciated value. The term 'original principal obligation of 
the mortgage' as used in section 204 shall not include the mortga-
gee's share of net appreciated value. 
"(d) Mortgages insured pursuant to this section which contain 
provisions for sharing appreciation or which otherwise require or 
permit increases in the outstanding loan balance which are author-
ized under this section or under applicable regulations shall not be 
subject to any State constitution, statute, court decree, common law, 
rule, or public policy limiting or prohibiting increases in the out-
standing loan balance after execution of the mortgage. 
"(e) In carrying out the provisions of this section, the Secretary 
shall encourage the use of insurance under this section by low and 
moderate income tenants who would otherwise be displaced by the 
conversion of their rental housing to condominium or cooperative 
ownership. 
"(f) The Secretary shall prescribe adequate consumer protections 
and disclosure requirements with respect to mortgages insured 
under this section, and may prescribe such other terms and condi-
tions as may be appropriate to carry out the provisions of this 
section. 
"(g) The aggregate number of mortgages and loans insured under 
this section, section 245(c), and section 251 in any fiscal year may 
not exceed 10 percent of the aggregate number of mortgages and 
loans insured by the Secretary under this title during the preceding 
fiscal year.". 
SHARED APPRECIATION MORTGAGES FOR MULTIFAMILY HOUSING 
SEC. 445. Title II ot the National Housing Act is amended by 
adding at the end thereof the following new section: 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1227 
SHARED APPRECIATION MORTGAGES FOR MULTIFAMILY HOUSING 
"SEC. 253. (a) Notwithstanding any provision of this title that is 
inconsistent with this section, the Secretary may insure, under any 
provision of this title providing for insurance of mortgages on 
properties including 5 or more family units, a mortgage secured by a 
first lien on the property that (1) provides for the mortgagee to share 
in a predetermined percentage of the property's net appreciated 
value; and (2) meets such other conditions, including limitations on 
the rate of interest which may be charged, as the Secretary may 
require by regulation. 
"(b) The mortgagee's share of a property's net appreciated value 
shall be payable upon maturity or upon payment in full of the loan 
or sale or transfer (as defined by the Secretary) of the property, 
whichever occurs first. The term of the mortgage shall not be less 
than 15 years, and shall be repayable in equal monthly installments 
of principal and fixed interest during the mortgage term in an 
amount which would be sufficient to retire a debt with the same 
principal and fixed interest rate over a period not exceeding 30 
years. In the case of a mortgage which will not be completely 
amortized during the mortgage term, the principal obligation of the 
mortgage may not exceed 85 percent of the estimated value of the 
property or project. For purposes of this section, the term 'net 
appreciated value' means the amount by which the sales price of the 
property (less the mortgagor's selling costs) exceeds the value (or 
replacement cost, as appropriate) of the property at the time the 
commitment to insure is issued (with adjustments for capital im-
provements stipulated in the loan contract). If there has been no 
sale or transfer at the time the mortgagee's share of net appreciated 
value becomes payable, the sales price for purposes of this section 
shall be determined by means of an appraisal conducted in accord-
ance with procedures approved by the Secretary and provided for in 
the mortgage. 
"(c) In the event of a default, the mortgagee shall be entitled to 
receive the benefits of insurance in accordance with section 204, but 
such insurance benefits shall not include the mortgagee's share of 
net appreciated value. The term 'original principal obligation of the 
mortgage' as used in section 204(a) shall not include the mortgagee's 
share of net appreciated value. 
"(d) The Secretary shall establish by regulation the maximum 
percentage of net appreciated value which may be payable to a 
mortgagee as the mortgagee's share. The Secretary shall also estab-
lish disclosure requirements applicable to mortgagees making mort-
gage loans pursuant to this section, to assure that mortgagors are 
informed of the characteristics of such mortgages. 
"(e) Mortgages insured pursuant to this section which contain 
provisions for sharing appreciation or which otherwise require or 
permit increases in the outstanding loan balance which are author-
ized under this section or under applicable regulations shall not be 
subject to any State constitution, statute, court decree, common law, 
rule, or public policy limiting or prohibiting increases in the out-
standing loan balance after execution of the mortgage. 
"(f) The number of dwelling units included in properties covered 
by mortgages insured pursuant to this section in any fiscal year may 
not exceed 5,000.". 
12 use 
1715Z-18. 
"Net 
appreciated 
value." 
12 u s e 1710. 
Regulations. 
Disclosure 
requirements. 
Dwelling units, 
limitation. 
97 STAT. 1228 
PUBLIC LAW 98-181—NOV. 30, 1983 
12 use 1713. 
12 use 1715k. 
12 u s e 1715Z. 
12 use 1715v. 
12 use 1713 
note. 
INSURANCE OF MORTGAGES NOT PROVIDING FOR COMPLETE 
AMORTIZATION 
SEC. 446. (a) The first sentence of the first undesignated paragraph 
of section 207(cX3) of the National Housing Act is amended by 
inserting immediately after "periodic payments" the following: 
"(unless otherwise approved by the Secretary)". 
(c) Section 220(dX4) of such Act is amended by inserting after 
"periodic payments" the following: "(unless otherwise approved by 
the Secretary)". 
(d) Section 221(dX6) of such Act is amended by inserting after 
"periodic payments" the following: "(unless otherwise approved by 
the Secretary)". 
(e) Section 231(cX5) of such Act is amended by inserting after 
"periodic pajonents" the following: "(unless otherwise approved by 
the Secretary)". 
(f) The aggregate number of dwelling units included in properties 
covered by mortgages insured pursuant to the authority granted in 
the amendments made by this section in any fiscal year may not 
exceed 10,000. 
12 
use 
1709. 
Ante, pp. 1223, 
1213, 
1225, 1227. 
PREMIUM CHARGES FOR INSURANCE OF ALTERNATIVE MORTGAGE 
INSTRUMENTS 
SEC. 447. The first proviso in section 203(c) of the National Hous-
ing Act is amended by inserting after "fixed for insurance" the 
following: "(1) under section 245, 247, 251, 252, or 253, or any other 
financing mechanism providing alternative methods for repajmient 
of a mortgage that is determined by the Secretary to involve addi-
tional risk, or (2)". 
Report to 
eongress. 
12 use 1709 
note. 
REPORT ON HOME EQUITY CONVERSION MORTGAGES FOR THE ELDERLY 
SEC. 448. The Secretary of Housing and Urban Development shall 
evaluate the existing use of home equity conversion mortgages for 
the elderly and, not later than the expiration of the 1-year period 
following the date of the enactment of this Act, submit to the 
Congress a report setting forth the results of such evaluation. Such 
report shall include— 
(1) an evaluation of whether the use of such mortgages 
improves the financial situation, or otherwise meets the special 
needs, of elderly homeowners; 
(2) an evaluation of any risks incurred by mortgagors as a 
result of the use of such mortgages, and any recommendations 
of the Secretary for appropriate safeguards to be included in 
such mortgages to minimize such risks; 
(3) an evsduation of the potential for acceptance of such 
mortgages in the private market; and 
(4) any recommendations of the Secretary for the establish-
ment of a Federal program of insuring such mortgages. 
PUBLIC LAW 98-181—NOV. 30, 1983 
PART B—FLOOD AND PROPERTY INSURANCE PROGRAMS 
97 STAT. 1229 
FLOOD INSURANCE 
SEC. 451. (a) Section 1319 of the National Flood Insurance Act of 
1968 is amended by striking out "November 30, 1983" and inserting 
in lieu thereof "September 30,1985". 
(b) Section 1336(a) of such Act is amended by striking out "Novem-
ber 30, 1983" and inserting in lieu thereof "September 30, 1985". 
(c) Section 1376(c) of such Act is amended— 
(1) by striking out "and" after "1981,"; and 
(2) by inserting the following before the period at the end 
thereof ", not to exceed $49,752,000 for the fiscal year 1984, and 
such sums as may be necessary for Hscal year 1985". 
(dXD The National Flood Insurance Act of 1968 is amended by 
striking out "Secretary" and "Secretary's" each place they appear 
therein (other than as a reference to a Secretary other than the 
Secretary of Housing and Urban Development) and inserting in lieu 
thereof "Director" and "Director's", respectively. 
(2) Section 1304(a) of such Act is amended by striking out "Secre-
tary of Housing and Urban Development" and inserting in lieu 
thereof "Director of the Federal Emergency Management Agency". 
(3) Section 1333 of such Act is amended by inserting "original 
exclusive" before "jurisdiction". 
(4) Section 1340(aX2) of such Act is amended by striking out 
"officers and employees of the Department of Housing and Urban 
Development, and". 
(5) Section 1341 of such Act is amended by inserting "original 
exclusive" before "jurisdiction". 
(6) Section 1360(aX2) of such Act is amended by striking out 
"within fifteen years following such date" and inserting in lieu 
thereof "by September 30,1985". 
(7) Section 1360 of such Act is amended by adding at the end 
thereof the following new subsection: 
"(d) The Director shall, not later than September 30, 1984, submit 
to the Congress a plan for bringing all communities containing 
flood-risk zones into full program status by September 30, 1987.". 
(8) Section 137(KaX6) of such Act is amended to read as follows: 
"(6) the term 'Director' means the Director of the Federal 
Emergency Management Agency.". 
(eXD The Flood Disaster Protection Act of 1973 is amended by 
striking out "Secretary" and "Secretary's" each place they appear 
therein (other than as a reference to a Secretary other than the 
Secretary of Housing and Urban Development) and inserting in lieu 
thereof "Director" and "Director's", respectively. 
(2) Section 3(aX6) of such Act is amended to read as follows: 
"(6) 'Director' means the Director of the Federal Emergency 
Management Agency.", 
(f) Section 15(e) of the Federal Flood Insurance Act of 1956 is 
amended by striking out "Secretary" the first and third places it 
appears therein and inserting in lieu thereof "Director of the 
Federal Emergency Management Agency". 
(gXD The premium rates charged for flood insurance under any 
program established pursuant to the National Flood Insurance Act 
of 1968 may not be increased during the period beginning on the 
date of the enactment of this Act and ending on September 30,1984. 
Ante, p. 746. 
Ante, p. 746. 
42 u s e 4127. 
42 u s e 4001 
note. 
42 u s e 4011. 
42 u s e 4053. 
42 u s e 4071. 
42 u s e 4072. 
42 u s e 4101. 
Plan, submittal 
to eongress. 
42 u s e 4121. 
42 u s e 4003, 
4012a, 
4105-4107, 4128. 
42 u s e 4003. 
42 u s e 2414. 
42 u s e 4015 
note. 
42 u s e 4001 
note. 
97 STAT. 1230 
PUBLIC LAW 98-181—NOV. 30, 1983 
Report to 
Congress. 
42 use 4001 
note. 
(2) The Federal Insurance Administrator shall, not later than 
June 30, 1984, submit to the Congress a report with respect to the 
premium rate structure for flood insurance made available pursuant 
to the National Flood Insurance Act of 1968. Such report shall 
include an explanation of any increases in such premiums that the 
Administrator anticipates will be made before October 1, 1985. 
Ante, p. 746. 
12 use 1749bbb 
et seq. 
12 use 
1749bbb-2. 
12 use 
1749bbb-10b. 
12 use 
1749bbb-17. 
CRIME AND RIOT INSURANCE 
SEC. 452. (aXD Section 1201(bXl) of the National Housing Act is 
amended by striking out "this title shall terminate on November 30, 
1983," and inserting in lieu thereof the following: "part B shall 
terminate on November 30, 1983, and parts A, C, and D shall 
terminate on September 30,1984,". 
(2) Section 1201(b) of such Act is amended by adding at the end 
thereof the following new paragraph: 
"(3) The Administrator shall notify participating insurers under 
part B that the reinsurance authority of the Administrator under 
such part shall terminate on November 30,1983.". 
(bXD Title XII of such Act is amended by striking out "Secretary" 
and "Secretary's" each place they appear therein (other than as a 
reference to a Secretary other than the Secretary of Housing and 
Urban Development) and inserting in lieu thereof "Director 
and 
"Director's", respectively. 
(2) Section 1203(a) of such Act is amended— 
(A) by striking out "and" at the end of paragraph (15); 
(B) by striking out the period at the end of paragraph (16) and 
inserting "; and ' in lieu thereof; and 
(C) by adding at the end thereof the following new paragraph: 
"(17) 'Director' means the Director of the Federal Emergency 
Management Agency.". 
(3) Section 1232(2) of such Act is amended by striking out "officers 
and employees of the Department of Housing and Urban Develop-
ment, and'. 
(4) Section 1247 of such Act is amended by inserting "of the 
Secretary of Housing and Urban Development" after "regulations)". 
42 use 4122 
note. 
STUDY OF SINKHOLE INSURANCE 
SEC. 453. The Director of the Federal Emergency Management 
Agency may make a grant to a nonprofit organization, educational 
institution or affiliated agency or entity, or State or local agency to 
finance a study of the feasibility of expanding the national flood 
insurance program to cover damage or loss arising from sinkholes. 
There is authorized to be appropriated not to exceed $1,000,000 to 
carry out the provisions of this section. 
PART C—REGULATORY AND OTHER PROGRAMS 
REAL ESTATE SETTLEMENT PROCEDURES 
12 u s e 2602. 
SEC. 461. (a) Section 3 of the Real Estate Settlement Procedures 
Act of 1974 is amended— 
(1) by striking out "and" at the end of paragraph (5); 
(2) by striking out the period at the end of paragraph (6) and 
inserting in lieu thereof a semicolon; and 
(3) by adding the following new paragraphs at the end thereof: 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1231 
"(7) the term 'controlled business arrangement' means an 
arrangement in which (A) a person who is in a position to refer 
business incident to or a part of a real estate settlement service 
involving a federally related mortgage loan, or an associate of 
such person, has either an affiliate relationship with or a direct 
or beneficial ownership interest of more than 1 percent in a 
provider of settlement services; and (B) either of such persons 
directly or indirectly refers such business to that provider or 
affirmatively influences the selection of that provider; and 
"(8) the term 'associate' means one who has one or more of 
the following relationships with a person in a position to refer 
settlement business: (A) a spouse, parent, or child of such 
person; (B) a corporation or business entity that controls, is 
controlled by, or is under common control with such person; (C) 
an employer, officer, director, partner, franchisor, or franchisee 
of such person; or (D) anyone who has an agreement, arrange-
ment, or understanding, with such person, the purpose or sub-
stantial effect of which is to enable the person in a position to 
refer settlement business to benefit financially from the refer-
rals of such business.". 
(b) Section 8(c) of such Act is amended— 
(1) by striking out "or" before "(3)"; 
(2) by redesignating clause (4) as clause (5); 
(3) by inserting the following after "brokers," at the end of 
clause (3): "(4) controlled business arrangements so long as (A) 
at or prior to the time of the referral a disclosure is made of the 
existence of such an arrangement to the person being referred 
and, in connection with the referral, such person is provided a 
written estimate of the charge or range of charges generally 
made by the provider to which the person is referred, except 
that where a lender makes the referral, this requirement may 
be satistied as part of and at the time that the estimates of 
settlement charges required under section 5(c) are provided, (B) 
such person is not required to use any particular provider of 
settlement services, and (C) the only thing of value that is 
received from the arrangement, other than the payments per-
mitted under this subsection, is a return on the ownership 
interest or franchise relationship,"; and 
(4) by inserting the following new sentence at the end thereof: 
"For purposes of the preceding sentence, the following shall not 
be considered a violation of clause 4(B): (i) any arremgement that 
requires a buyer, borrower, or seller to pay for the services of an 
attorney, credit reporting agency, or real estate appraiser 
chosen by the lender to represent the lender's interest in a real 
estate transaction, or (ii) any arrangement where an attorney or 
law firm represents a client in a real estate transaction and 
issues or arranges for the issuance of a policy of title insurance 
in the transaction directly as agent or through a separate 
corporate title insurance agency that may be established by 
that attorney or law firm and operated as an adjunct to his or 
its law practice.". 
(c) Section 8(d) of such Act is amended by striking out paragraph 
(2) and inserting in lieu thereof the following: 
•'(2) Any person or persons who violate the prohibitions or limita-
tions of this section shall be jointly and severally liable to the person 
or persons charged for the settlement service involved in the viola-
"Controlled 
business 
arrangement; 
"Associate." 
12 u s e 2607. 
12 use 2604. 
Violations. 
97 STAT. 1232 
PUBLIC LAW 98-181—NOV. 30, 1983 
Ante, p. 1231. 
Court costs and 
attorney fees. 
12 u s e 2614. 
tion in an amount equal to three times the amount of any charge 
paid for such settlement service. 
"(3) No person or persons shall be liable for a violation of the 
provisions of section 8(cX4XA) if such person or persons proves by a 
preponderance of the evidence that such violation was not 
intentional and resulted from a bona fide error notwithstanding 
maintenance of procedures that are reasonably adapted to avoid 
such error. 
"(4) The Secretary, the Attorney General of any State, or the 
insurance commissioner of any State may bring an action to enjoin 
violations of this section. 
"(5) In any private action brought pursuant to this subsection, the 
court may award to the prevailing party the court costs of the action 
together with reasonable attorneys fees. 
"(6) No provision of State law or regulation that imposes more 
stringent limitations on controlled business arrangements shall be 
construed as being inconsistent with this section.". 
(d) Section 16 of such Act is amended to read as follows: 
12 use 2607, 
2608. 
12 use 2617. 
Investigations. 
Effective date. 
12 use 2602 
note. 
JURISDICTION OP COURTS 
"SEC. 16. Any action pursuant to the provisions of section 8 or 9 
may be brought in the United States district court or in any other 
court of competent jurisdiction, for the district in which the 
property involved is located, or where the violation is alleged to 
have occurred, within one year from the date of the occurrence of 
the violation, except that actions brought by the Secretary, the 
Attorney General of any State, or the insurance commissioner of 
any State may be brought within 3 years from the date of the 
occurrence of the violation.". 
(e) Section 19 of such Act is amended by adding the following new 
subsection at the end thereof: 
"(cXD The Secretary may investigate any facts, conditions, prac-
tices, or matters that may be deemed necessary or proper to aid in 
the enforcement of the provisions of this Act, in prescribing of rules 
and regulations thereunder, or in securing information to serve as a 
basis for recommending further legislation concerning real estate 
settlement practices. To aid in the investigations, the Secretary is 
authorized to hold such hearings, administer such oaths, and 
require by subpena the attendance and testimony of such witnesses 
and production of such documents as the Secretary deems advisable. 
"(2) Any district court of the United States within the jurisdiction 
of which an inquiry is carried on may, in the case of contumacy or 
refusal to obey a subpena of the Secretary issued under this section, 
issue an order requiring compliance therewith; and any failure to 
obey such order of the court may be punished by such court as a 
contempt thereof.". 
(f) The amendments made by this section shall become effective on 
January 1,1984. 
Appropriation 
authorization. 
12 use 1701J-2. 
NATIONAL INSTITUTE OF BUILDING SCIENCES 
SEC. 462. Section 809(h) of the Housing and Community Develop-
ment Act of 1974 is amended by adding at the end thereof the 
following new sentences: "In addition to the amounts authorized to 
be appropriated under the first sentence of this section, there is 
authorized to be appropriated to the Institute to carry out the 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1233 
provisions of this section not to exceed $250,000 for fiscal year 1984. 
Any amount appropriated under the preceeding sentence shall be 
made available for expenditure or obligation by the Institute only to 
the extent of an equal amount received by the Institute after the 
effective date of this sentence from persons or entities other than 
the Federal Government.". 
SOLAR ENERGY AND ENERGY CONSERVATION BANK 
SEC. 463. (aXD Section 504(6) of the Solar Energy and Energy 
Conservation Bank Act is amended— 
12 USC 3602. 
(A) by inserting after subparagraph (G) the following new 
subparagraphs: 
"(H) air-conditioning systems having better than average 
energy efficiency ratings; 
"(I) any residential energy audit;"; 
(B) by redesignating subparagraphs (H) and (I) as subpara-
graphs (J) and (K), respectively; and 
(C) in subpareigraph (K), as so redesignated in this para-
graph— 
(i) by striking out "any residential energy audit,"; and 
(ii) by striking out "(H)" and inserting in lieu thereof 
"(J)". 
(2) Section 504(7) of the Solar Energy and Energy Conservation 
Bank Act is amended— 
(A) by inserting after subparagraph (I) the following new 
suljparagraphs: 
"(J) air-conditioning systems having better than average 
energy efficiency ratings; 
"(K) any commercial energy audit;"; 
(B) by redesignating subparagraphs (J) and (K) as subpara-
graphs (L) and (M), respectively; and 
(C) in subparagraph (M), as so redesignated in this para-
graph— 
(i) by striking out ", and any commercial energy audit,"; 
and 
(ii) by striking out "(J)" and inserting in lieu thereof 
"(L)". 
(b) Section 508(f) of such Act is amended by adding at the end 
12 USC 3606. 
thereof the following new sentence: "Each such advisory committee 
shall meet at the call of its chairperson or a majority of its members, 
and shall meet not less than twice during each year.". 
(cXD Section 511(a) of such Act is amended— 
12 USC 3609. 
(A) by striking out "and" at the end of paragraph (3); 
(B) by striking out the period at the end of paragraph (4) and 
inserting in lieu thereof "; and"; and 
(C) by adding at the end thereof the following new paragraph: 
"(5) in the case of a residential building with 2 to 4 dwelling 
units and an owner or tenant whose income exceeds 150 percent 
of the median area income, or in the case of a residential 
building that is available for rent and is owned by a person 
whose income exceeds 150 percent of the median area income— 
"(A) an amount equal to 20 percent of the cost of the 
residential energy conservation improvements; or 
"(B) the sum of $400 times the number of dwelling units 
in such building in the case of an owner, or $400 in the case 
of a tenant, 
whichever is less.". 
97 STAT. 1234 
12 use 3609. 
Installation 
warranties. 
12 use 3612. 
42 use 8811. 
42 use 8815. 
12 use 3618. 
Regulations. 
PUBLIC LAW 98-181—NOV. 30, 1983 
(2) Section 511 of such Act is amended by adding at the end 
thereof the following new subsection: 
"(d) The Board may not limit the amount of financial assistance 
that may be provided under this subtitle for the purchase or instal-
lation of residential or commercial energy conserving improvements 
on the basis of the proiected amount of energy conserved as a result 
of such improvements.'. 
(cXD Section 514(aX2) of such Act is amended to read as follows: 
"(2XA) the contractor who installs residential or commercial 
energy conserving improvements in a building shall, in connec-
tion with such improvements, warrant in writing that the 
owner or tenant receiving the proceeds of such loan shall (for 
those improvements found within 1 year of installation to be 
defective due to materials manufacture, design, or installation) 
at a minimum be entitled to obtain within a reasonable period 
of time and at no charge appropriate replacement parts, 
materials, or installation; and 
"(B) in the case of energy conserving improvements installed 
by an owner or tenant without the assistance of a contractor, 
such owner or tenant shall certify to the financial institution 
that he or she has obtained warranties as appropriate from the 
supplier for the energy conserving measures;'. 
(2) Section 514(bX4) of such Act is amended by inserting before the 
semicolon at the end thereof the following: "unless such residential 
energy conserving improvements are installed in a building which is 
either located in an area which is" not served by a public utility 
described in section 211(a) of such Act or which is located in an area 
served by such a public utility but in which no list has been made 
public by the public utility under section 215(aX3) of such Act or by 
the Secretary of Energy". 
(3) Section 514(bX5) of such Act is amended to read as follows: 
"(5XA) the contractor who installs residential or commercial 
energy conserving improvements in a building shall, in connec-
tion with such improvements, warrant in writing that the 
owner or tenant receiving the proceeds of such loan shall (for 
those improvements found within 1 year of installation to be 
defective due to materials manufacture, design, or installation) 
at a minimum be entitled to obtain within a reasonable period 
of time and at no charge appropriate replacement parts, 
materials, or installation; and 
"(B) in the case of energy conserving improvements installed 
by an owner or tenant without the assistance of a contractor, 
such owner or tenant shall certify to the financial institution 
that he or she has obtained warranties as appropriate from the 
supplier for the energy conserving measures;'. 
(e) Section 520 of such Act is amended— 
(1) by inserting "(a)" after the section designation; and 
(2) by adding at the end thereof the following new subsection: 
"(b) Not later than 90 days after the effective date of this subsec-
tion, the Board shall issue regulations that— 
"(1) permit the provision of financial assistance under this 
subtitle for the purchase and installation of solar ener^ sys-
tems of the active type, and the purchase and installation of 
passive and active type solar space heating and water heating in 
new and existing residential buildings and multifamily residen-
tial buildings; 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1235 
"(2) do not prohibit the use of tax-exempt financing in connec-
tion with any purchase or installation of residential or commer-
cial energy conserving improvements or solar energy systems 
assisted under this subtitle; 
"(3) provide that a residential energy audit shall not be 
required as a condition of the receipt of financial assistance by 
an owner or tenant of a residential building under this subtitle, 
except that such regulations may require such audit with 
respect to any such building located in an area in which an 
audit is available under the provisions of title II or VII of the 
National Energy Conservation Policy Act; 
"(4XA) establish a maximum limitation on the percentage or 
amount of any financial assistance provided under this subtitle 
that may be used for administrative expenses, which limitation 
shall be 12 percent (or such higher percentage as the Secretary 
may determine to be appropriate), or $20,000, whichever 
amount is greater; and 
"(B) provide that not more than one-half of any such amount 
may be used by any State for its administrative expenses, except 
that if any State is the sole administrative entity in such State 
with respect to financial assistance under this subtitle such 
State may use all of such amount for such expenses; 
"(5) establish criteria for the allocation of financial assistance 
under this subtitle among eligible financial institutions; and 
"(6) provide that any amount of unexpended financial assist-
ance under this subtitle that is recaptured by the Board shall be 
reallocated by the Board to eligible financisd institutions under 
this subtitle.". 
(fXD Section 1071 of the Omnibus Budget Reconciliation Act of 
1981 is amended— 
(A) by striking out "such fiscal year" and inserting in lieu 
thereof "of fiscal years 1982 and 1983"; and 
(B) by inserting after "$50,000,000" the following: ", and for 
fiscal year 1984 not to exceed $35,000,000,". 
(2) Section 522 of the Solar Energy and Energy Conservation Bank 
Act is amended— 
(A) by striking out the hyphen before paragraph (1) in subsec-
tion (a) and all that follows through the period at the end of 
subsection (b) and inserting in lieu thereof the following: "and 
of solar energy systems such sums as may be necessary for fiscal 
year 1985."; and 
(B) by redesignating subsection (c) as subsection (b). 
Residential 
energy audit. 
42 u s e 8211, 
8281. 
12 use 3620 
note. 
12 use 3620. 
WEATHERIZATION PROGRAM 
SEC. 464. Section 422 of the Energy Conservation in Existing 
Buildings Act of 1976 is amended to read as follows: 
42 use 6872. 
AUTHORIZATION OF APPROPRIATIONS 
"SEC. 422. Of the funds authorized by section 1005(1) of the 
Omnibus Budget Reconciliation Act of 1981 for energy conservation 
for fiscal year 1984, not less than $190,000,000 is authorized to be 
appropriated to carry out the weatherization program under this 
part. There is authorized to be appropriated such sums as may be 
necessary for fiscal year 1985 to carry out such weatherization 
42 use 7270 
note. 
97 STAT. 1236 
PUBLIC LAW 98-181—NOV. 30, 1983 
program. Any amount appropriated under this section shall remain 
available until expended.'. 
COUNSEUNG 
SEC. 465. Section 106(aX3) of the Housing and Urban Development 
12 use 1701X. 
Act of 1968 is amended— 
(1) by striking out "1982" and inserting in lieu thereof "1984"; 
and 
(2) by striking out "$4,000,000" and inserting in lieu thereof 
"$3,500,000". 
RESEARCH AUTHORIZATION 
SEC. 466. (a) Section 501 of the Housing and Urban Development 
12 use ITOlz-l. 
Act of 1970 is amended by striking out the second sentence and 
inserting in lieu thereof the following: "There are authorized to be 
appropriated for activities under this title not to exceed $19,000,000 
for fiscal year 1984, and such sums as may be necessary for fiscal 
year 1985. Of the amount appropriated under the preceding sen-
tence for fiscal year 1984, not less than $2,000,000 shall be provided 
for implementation 6f a research program to be developed in consul-
tation with public housing agencies, which program shall identify 
current problems of public housing management, specific solutions 
to such problems, and incentives to encourage implementation of 
such solutions.". 
(b) Title V of the Housing and Urban Development Act of 1970 is 
amended by adding at the end thereof the following new section: 
12 use 
170lz-10a. 
BIENNIAL SURVEY OF ECONOMIC AND HOUSING MARKET CONDITIONS 
"SEC. 512. The Secretary shall, not less than biennially, survey 
national, regional, and local economic and housing market condi-
tions in a manner that provides data comparable to the data 
collected in such survey conducted in 1981.". 
NATIONAL HOUSING PARTNERSHIPS 
SEC. 467. Section 906(aXl) of the Housing and Urban Development 
42 use 3936. 
Act of 1968 is amended— 
(1) by striking out "or" after "building" and inserting in lieu 
thereof a comma; and 
(2) by inserting after "rehabilitation" the following ", acquisi-
tion, and financing". 
REPORT REGARDING PROGRAM CHANGES 
Transmittal to 
SEC. 468. The Secretary of Housing and Urban Development shall, 
eongress. 
^ot later than March 1, 1984, transmit a report to both Houses of 
the Congress that describes— 
(1) the standards utilized by the Department of Housing and 
Urban Development to make determinations 
concerning 
whether program requirements and changes to those require-
ments are implemented through the use of regulations, hand-
books, memoranda, telegrams, or other forms of formal or 
informal notices; and 
(2) the system currently utilized by the Department to assure 
that changes in the operation of departmental programs that 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1237 
substantially affect the eligibility, rights, or benefits of persons 
applying for or receiving assistance under any such programs 
are subject to requirements of notice and publication, especially 
those requirements specified in subsections (b) through (e) of 
section 553 of title 5, United States Code. 
PERIODIC REPORT ON RESIDENTIAL MORTGAGE DEUNQUENCIES AND 
FORECLOSURES 
SEC. 469. As soon as practicable following the date of the enact-
ment of this Act, the Secretary of Housing and Urban Development, 
with the cooperation of the Federal Home Loan Bank Board, the 
Federal Deposit Insurance Corporation, the Board of Governors of 
the Federal Reserve System, and the Comptroller of the Currency, 
shall develop a method of accurately reporting to the Congress on a 
periodic basis with respect to residential mortgage delinquencies 
and foreclosures. Each such report shall include information with 
respect to the number of residential mortgage foreclosures, and the 
number of sixty- and ninety-day residential mortgsige delinquencies, 
in the Nation and in each State. 
12 u s e 1701p-l. 
PUBUC NOTICE AND COMMENT REGARDING DEPARTMENT 
DEMONSTRATION PROGRAMS 
SEC 470. (a) No demonstration program not expressly authorized 
in law may be commenced by the Secretary of Housing and Urban 
Development until (1) a description of such demonstration program 
is published in the Federal Register, which description may be 
included in a notice of funding availability; and (2) there expires a 
period of sixty calendar days following the date of such publication, 
during which period the Secretary shall fully consider any public 
comments submitted with respect to such demonstration program. 
(b) Nothing in this section may be considered to authorize the 
conducting of any demonstration program by the Secretary of Hous-
ing and Urban Development. 
Publication in 
Federal 
Register. 
42 use 3542. 
MULTIFAMILY MORTGAGE FORECLOSURE 
SEC. 471. Section 364 of the Multifamily Mortgage Foreclosure Act 
of 1981 is amended by adding at the end thereof the following new 
12 USC 3703. 
sentence: "If the Secretary forecloses on any such mortgage pursu-
ant to such other foreclosure procedures available, the provisions of 
section 367(b) may be applied at the discretion of the Secretary.". 
12 USe 3706. 
ALTERNATIVE MORTGAGE TRANSACTIONS 
SEC. 472. Section 805(a) of the Alternative Mortgage Trsmsaction 
Parity Act of 1982 is amended by inserting after "transactions" the 
12 USC 3804. 
following: "(or to any class or type of alternative mortgage 
transaction)". 
DUE-ON-SALE CLAUSE PROHIBITIONS 
SEC, 473. Section 341(d) of the Thrift Institutions Restructuring 
Act is amended by striking out "A lender" and inserting in lieu 
12 USe l701j-3. 
thereof the following: "With respect to a real property loan secured 
by a lien on residential real property containing less than five 
dwelling units, including a lien on the stock allocated to a dwelling 
97 STAT. 1238 
PUBLIC LAW 98-181—NOV. 30, 1983 
xuiit in a cooperative housing corporation, or on a residential manu-
factured home, a lender". 
12 use 
1701g-5b. 
42 u s e 3901. 
42 u s e 4501. 
12 u s e 1701g-5. 
42 u s e 4518. 
Ante, p. 219. 
Report to 
eongress. 
42 u s e 3902, 
4514. 
Ante, p. 219. 
42 u s e 3902, 
4514. 
CANCELLATION OF DEBT OWED THE TREASURY AND UQUIDATION OF 
NEW COMMUNITIES PROGRAM 
SEC. 474. (a) In order to provide for the management and orderly 
liquidation of the assets, and discharge the liabilities, acquired or 
incurred in connection with the new communities program author-
ized pursueuit to title IV of the Housing and Urban Development 
Act of 1968 and title VII of the Housing and Urban Development 
Act of 1970 (hereafter referred to in this section as "title IV" and 
"title VII", respectively), the liquidation of the new communities 
program shall be carried out pursuant to the provisions of law 
applicable to the revolving fund (liquidating programs) established 
pursuant to title II of the Independent Offices Appropriations Act, 
1955, upon the transfer by the Secretary of Housing and Urban 
Development (hereafter in this section referred to as the '*Secre-
tary") of the assets and liabilities of the fund authorized under 
section 717 of title VII to such revolving fund, as required in title I 
of the Department of Housing and Urban Development-Independent 
Agencies Appropriation Act, 1984. The Secretary shall report to the 
Congress not less than sixty days prior to taking any action with 
respect to the disposition of real property (other than a purchase 
money mortgage) which involves any further potential liability of or 
assistance from the Department of Housing and Urban Develop-
ment with respect to any property so transferred. 
(b) In canying out the purposes of subsection (a), all moneys in the 
revolving fund (liquidating programs) shall be available for neces-
sary administrative and other expenses of servicing and liquidating 
obligations guaranteed pursuant to section 403 and section 713 of 
title IV and title VII, respectively, including costs of services (includ-
ing legal services) performed on a contract or fee basis, and to 
discharge any other liability acquired or incurred in connection with 
the new communities program. Notwithstanding any other provi-
sion of law relating to the acquisition, handling, improvement, or 
disposal of real and other property by the United States, the Secre-
tary of Housing and Urban Development shall also have power, for 
the protection of the interests of the revolving fund (liquidating 
programs), to pay out of any moneys in such fund all expenses or 
charges in connection with the acquisition, handling, improvement, 
or disposal of any property, real or personal, acquired by the Secre-
tary either prior or subsequent to the date of the enactment of this 
Act as a result of recoveries under security, subrogation, or other 
rights in connection with the new communities program. 
(c) After making the transfer required in title I of the Department 
of Housing and Urban Development-Independent Agencies Appro-
priation Act, 1984, the Secretary of Housing and Urban Develop-
ment may issue obligations to the Secretary of the Treasury in an 
amount sufficient to enable the Secretarv of Housing and Urban 
Development to satisfy any guarantee made pursuant to section 403 
or 713 of title IV or title VlI, respectively, and otherwise carry out 
the functions authorized by this section. The obligations issued 
under this subsection shall have such maturities and bear such rate 
or rates of interest as shall be determined by the Secretary of the 
Treasury. The Secretary of the Treasury is authorized and directed 
to purchase any obligations so issued, and for that purpose the 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1239 
Secretary of the Treasury is authorized to use as a public debt 
transaction the proceeds from the sale of any securities issued under 
chapter 31 of title 31, United States Code, and the purposes for 
which securities niay be issued under such chapter are extended to 
include purchases of obligations issued under this subsection. 
(d) Upon the transfer required in title I of the Department of 
Housing and Urban Development-Independent Agencies Appropri-
ation Act, 1984, each obligation issued by the Secretary of Housing 
and Urban Development to the Secretary of the Treasury pursuant 
to section 407(a) or 717(b) of title IV or title VII, respectively, 
together with any promise to repay the principal and unpaid inter-
est which has accrued on each obligation, and any other term or 
condition specified by each such obligation, is canceled. 
(e) Title IV, except for sections 408,411,413, 414, and 416, and part 
B of title VII, except for sections 724, 725, 726, and subsections (b) 
through (e) of section 727, are hereby repealed. Section 717 of title 
VII shall remain in effect until completion of the transfer required 
in title I of the* Department of Housing and Urban Development-
Independent Agencies Appropriation Act, 1984. The Secretary may 
not implement the amendment to section 214 of the Housing and 
Community Development Act of 1980, made by section 329(a) of the 
Housing and Community Development Amendments of 1981, before 
the expiration of the one-year period following the date of the 
enactment of this Act. Any actions taken, prior to repeal, under the 
authority of any of the sections which are repealed by this section 
shall continue to be valid. Nothing in this subsection shall impair 
the validity of any guarantees which have been made pursuant to 
title IV or title VII and any such guarantees shall continue to be 
governed by the provisions of title IV or title VII, as applicable, as 
they existed immediately before the date of the enactment of this 
Act. 
PART D—SECONDARY MORTGAGE MARKET PROGRAMS 
31 u s e 3101 et 
seq. 
Ante, p. 219. 
42 u s e 3906, 
4518. 
42 u s e 3901. 
42 u s e 4511. 
42 u s e 4518 
note. 
42 u s e 1436a 
note. 
42 u s e 1436a. 
42 u s e 3901 
note. 
42 u s e 3901, 
4501. 
AMOUNT TO BE GUARANTEED UNDER THE GOVERNMENT NATIONAL 
MORTGAGE ASSOCIATION MORTGAGE-BACKED SECURITIES PROGRAM 
SEC. 481. Section 306(gX2) of the Federal National Mortgage Asso-
ciation Charter Act is amended to read as follows: 
"(2) Notwithstanding any other provision of law and subject only 
to the absence of qualified requests for guarantees, to the authority 
provided in this subsection, and to any funding limitation approved 
in appropriation Acts, the Association shall enter into commitments 
for each of the fiscal years 1984 and 1985 to issue guarantees under 
this subsection for each such Hscal year in an aggregate amount of 
$68,250,000,000.". 
12 u s e 1721. 
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION COMMITMENT 
EXTENSION 
SEC. 482. The commitment issued under section 305(b) of the 
Federal National Mortgage Association Charter Act, known as 
GNMA commitment numbered 926-984, to purchase a mortgage 
insured under such Act shall be grsmted for 43 months without the 
imposition of additional fees beyond the initial commitment fee. 
Post, p. 1240. 
97 STAT. 1240 
PUBLIC LAW 98-181—NOV. 30, 1983 
Repeals. 
12 u s e 1720, 
1723e. 
12 u s e 1723e 
note. 
12 u s e 1720 
note. 
Rural Housing 
Amendments of 
1983. 
42 u s e 1441 
note. 
42 u s e 1471. 
42 u s e 1437 
note. 
Ante, p. 1179. 
SPECIAL ASSISTANCE AND EMERGENCY MORTGAGE PURCHASE ASSIST-
ANCE FUNCTIONS OF THE GOVERNMENT NATIONAL MORTGAGE 
ASSOCIATION 
SEC. 483. (a) Sections 305 and 313 of the Federal National Mort-
gage Association Charter Act and section 3(b) of the Emergency 
Home Purchase Assistance Act of 1974 are hereby repealed. 
(b) Any purchase or commitment to purchase any mortgage pursu-
ant to section 305 or 313 of the Federal National Mortgage Associ-
ation Charter Act made before the date of the enactment of this Act, 
and the servicing and disposition of any such mortgage, shall con-
tinue to be governed by the provisions of such sections as they 
existed immediately before the effective date of this section. 
TITLE V—RURAL HOUSING 
SHORT TITLE 
SEC. 501. This title may be cited as the "Rural Housing Amend-
ments of 1983". 
DEFINITIONS 
SEC. 502. (a) Section 50T(bX4) of the Housing Act of 1949 is 
amended to read as follows: 
"(4) For the purpose of this title, the terms 'low income families or 
persons' and very low-income families or persons' means those 
families and persons whose incomes do not exceed the respective 
levels established for lower income families and very low-income 
families by the Secretary of Housing and Urban Development under 
the United States Housing Act of 1937.". 
(b) Section 501(bX5) of such Act is amended to read as follows: 
"(5) For the purpose of this title, the terms 'income' and 'adjusted 
income' have the meanings given by sections 3(bX4) and 3(bX5), 
respectively, of the United States Housing Act of 1937.". 
SECTION 502 AMENDMENTS 
42 use 1472. 
SEC. 503. (a) Section 502 of the Housmg Act of 1949 is amended by 
adding at the end thereof the following: 
"(d) On and after the effective date of the Rural Housing Amend-
Supra, 
ments of 1983— 
"(1) not less than 40 per centum of the dwelling units financed 
under this section shall be available only for occupancy by very 
low-income families or persons; and 
"(2) not less than 30 per centum of the dwelling units in each 
State financed under this section shall be available only for 
occupancy by very low-income families or persons. 
"(eXD A loan which may be made or insured under this section 
with respect to housing shall be made or insured with respect to a 
manufactured home or with respect to a manufactured home and 
lot, whether such home or such home and lot is real property, 
personal property, or mixed real and personal property, if— 
"(A) the manufactured home meets the standards prescribed 
pursuant to title VI of the Housing and Community Develop-
42 use 5401. 
ment Act of 1974; 
"(B) the manufactured home, or the manufactured home and 
lot, meets the installation, structural, and site requirements 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1241 
Energy 
conserving 
requirements. 
which would apply under title II of the National Housing Act; 
12 USC 1707. 
and 
"(C) the manufactured home meets the energy conserving 
requirements established under paragraph (2), or until the 
energy conserving requirements are established under para-
graph (2), the manufactured home meets the energy conserving 
requirements applicable to housing other than manufactured 
housing financed under this title. 
"(2) Energy conserving requirements established by the Secretary 
for the purpose of paragraph (IXC) shall— 
"(A) reduce the operating costs for a borrower by maximizing 
the energy savings and be cost-effective over the life of the 
manufactured home or the term of the loan, whichever is 
shorter, taking into account variations in climate, types of 
energy used, the cost to modify the home to meet such require-
ments, and the estimated value of the energy saved over the 
term of the mortgage; and 
"(B) be established so that the increase in the annual loan 
payment resulting from the added energy conserving require-
ments in excess of those required by the standards prescribed 
under title VI of the Housing and Community Development Act 
of 1974 shall not exceed the projected savings in annual energy 
costs.". 
(b) Within 18 months from the issuance by the Secretary of 
Agriculture of regulations under section 502(eX2) of the Housing Act 
of 1949, the Secretary of Energy, in consultation with the Secretary 
of Housing and Urban Development and the Secretary of Agricul-
ture, shall conduct a study and transmit to the (Dongress a report 
that compares the increased construction costs, actua). annual 
energy use, and the projected value of energy saved over the 
expected life of the home or the mortgage term, whichever is 
shorter, of manufactured homes which are financed under titles I 
and II of the National Housing Act, or under title V of the Housing 
Act of 1949 and which are built according to national manufactured 
housing safety standards with other homes insured under either 
such Act. 
(c) Section 527 of such Act is repealed. 
(d) Section 502(a) of such Act is amended— 
(1) by inserting "(1)" after the subsection designation; 
(2) by striking out all after "making of the loan with interest" 
and inserting in lieu thereof a period and the following: "The 
Secretary may accept the personal liability of any person with 
adequate repayment ability who will cosign the applicant's note 
to compensate for any deficiency in the applicant's repayment 
ability. At the borrower's option, the borrower may prepay to 
the Secretary as escrow agent, on terms and conditions pre-
scribed by him, such taxes, insurance, and other expenses as the 
Secretary may require in accordance with section 501 (e)."; and 
42 USC 1471. 
(3) by adding at the end thereof the following new paragraph: 
"(2) The Secretary may extend the period of any loan made under 
Loan extension 
this section if the Secretary determines that such extension is 
penod. 
necessary to permit the making of such loan to any person whose 
income does not exceed 60 per centum of the median income for the 
area and who would otherwise be denied such loan because the 
payments required under a shorter period would exceed the finan-
cial capacity of such person. The aggregate period for which any 
42 USC 5401. 
Report to 
Congress. 
42 USC 1472 
note. 
Ante, p. 1240. 
12 USC 1702, 
1707. 
42 USC 1471. 
Repeal. 
42 USC 1490g. 
42 USC 1472. 
97 STAT. 1242 
PUBLIC LAW 98-181—NOV. 30, 1983 
42 use 1474. 
42 use 1476. 
Report to 
eongress. 
loan may be extended under this paragraph may not exceed 5 
years.". 
REHABILITATION LOANS 
SEC. 504. The first and second sentences of section 504(a) of the 
Housing Act of 1949 are amended to read as follows: "The Secretary 
may make a loan, grant, or combined loan and grant to an eligible 
very low-income applicant in order to improve or modernize a rural 
dwelling, to make the dwelling safer or more sanitary, or to remove 
hazards. The Secretary may make a loan or grant under this 
subsection to the applicant to cover the cost of any or all repairs, 
improvements, or additions such as repairing roofs, providing sani-
tary waste facilities, providing a convenient and sanitary water 
supply, repairing or providing structural supports, or making simi-
lar repairs, additions, improvements, including all preliminary and 
installation costs in obtaining central water and sewer service. The 
maximum amount of a grant, a loan, or a loan and grant shall 
not exceed such limitations as the Secretary determines to be 
appropriate.". 
TECHNICAL SERVICES AND RESEARCH 
SEC. 505. Section 506(b) of the Housing Act of 1949 is amended by 
adding at the end thereof the following: "In carrying out this 
subsection, the Secretary may permit demonstrations involving 
innovative housing units and systems which do not meet existing 
published standards, rules, regulations, or policies if the Secretary 
finds that in so doing, the health and safety of the population of the 
area in which the demonstration is carried out will not be adversely 
affected, except that the aggregate expenditures for such demonstra-
tions may not exceed $10,000,000 in any fiscal year. The Secretary 
shall report to the Congress at the close of each fiscal year on the 
results of such demonstrations.". 
42 use 1479. 
12 use 1707. 
Ante, p. 1240. 
Ante, p. 1210. 
Repeal. 
42 use 14901. 
STANDARDS FOR ADEQUATE HOUSING 
SEC. 506. (a) Section 509(a) of the Housing Act of 1949 is amended 
by adding at the end thereof the following: "The Secretary shall 
approve a residential building as meeting such standards if the 
building is constructed in accordance with (1) the minimum 
standards prescribed by the Secretary, (2) the minimum property 
standards prescribed by the Secretary of Housing and Urban Devel-
opment for mortgages insured under title II of the National Housing 
Act, (3) the standards contained in any of the voluntary national 
model building codes, or (4) in the case of manufactured housing, the 
standards referred to in section 502(e) of this Act. To the maximum 
extent feasible, the Secretary shall promote the use of energy saving 
techniques through standards established by such Secretary for 
newly constructed residential housing assisted under this title. Such 
standards shall, insofar as is practicable, be consistent with the 
standards established pursuant to section 526 of the National Hous-
ing Act and shall incorporate the energy performance requirements 
developed pursuant to such section.". 
(b) Section 529 of such Act is repealed. 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1243 
GENERAL AUTHORITY OF THE SECRETARY 
SEC. 507. (a) Section 510(e) of such Act is amended bv adding 
42 USC 1480. 
before the semicolon at the end thereof the following: 'and the 
authority of the Secretary under this paragraph includes the 
authority to transfer section 502 inventory properties for use as 
42 USC 1472. 
rental or cooperative units under section 515 with mortgages con- 
42 USC 1485. 
taining repayment terms with up to fifty years to private nonprofit 
organizations or public bodies. Such a transfer may be made even 
where rental assistance may be required so long as the authority to 
provide such assistance is available after taking into account the 
requirements of section 521(dXl)- Where the Secretary determines 
Post, p. 1249. 
the transfer will contribute to the provision of housing for very low-
income persons and families, the transfer may be made at the lesser 
of the appraised value or the Farmers Home Adminstration's 
investment". 
(b) Section 510 of such Act is amended by redesignating subsection 
42 USC 1480. 
(j) as subsection (k) and inserting after subsection (i) the following 
new subsection: 
"(j) utilize the services of fee inspectors and fee appraisers to 
expedite the processing of applications for loans and grants 
under this title, which services shall be utilized in any case in 
which a county or district office is unable to expeditiously 
process such loan and grant applications, and to include the cost 
of such services in the amount of such loans and grants; and". 
AMENDMENT TO SECTION 511 
SEC. 508. The second sentence of section 511 of the Housing Act of 
1949 is repealed. 
42 USC 1481. 
REPEAL OF SECTION 512 
SEC. 509. Section 512 of the Housing Act of 1949 is repealed. 
42 USC 1482. 
DETERMINATION OF NEED FOR HOUSING UNDER SECTIONS 514 AND 516 
SEC. 510. Section 514 of the Housing Act of 1949 is amended by 
42 USC 1484. 
adding the following new subsection at the end thereof: 
"(h) In making available assistance in any area under this section 
or section 516, the Secretary shall— 
42 USC 1486. 
"(1) in determining the need for the assistance, take into 
consideration the housing needs only of domestic farm labor, 
including migrant farmworkers, in the area; and 
"(2) in determining whether to provide such assistance, make 
such determination without regard to the extent or nature of 
other housing needs in the area.'. 
AUTHORIZATIONS 
SEC. 511. (a) Section 513 of the Housing Act of 1949 is amended to 
42 USC 1483. 
read as follows: 
"PROGRAM LEVELS AND AUTHORIZATIONS 
"SEC. 513. (a) The Secretary may insure and guarantee loans 
under this title during fiscal years 1984 and 1985 in an aggregate 
amount not to exceed such sums as may be approved in an appropri-
ation Act. 
97 STAT. 1244 
PUBLIC LAW 98-181—NOV. 30, 1983 
"(b) There are authorized to be appropriated for fiscal years 1984 
and 1985— 
"(1) such sums as may be necessary for grants pursuant to 
42 use 1474. 
section 504; 
"(2) such sums as may be necessary for the purposes of section 
42 use 1479. 
509(c); 
"(3) such sums as may be necessary to meet pa3anents on 
notes or other obligations issued by the Secretary under section 
42 use 1481. 
511 equal to (A) the aggregate of the contributions made by the 
Secretary in the form of credits on principal due on loans made 
42 use 1473. 
pursuant to section 503, and (B) the interest due on a similar 
sum represented by notes or other obligations issued by the 
Secretary; 
"(4) such sums as may be necessary for financial assistance 
42 use 1486. 
pursuant to section 516; 
"(5) such sums as may be necessary for the purposes of section 
42 use 1490c. 
523; 
42 use 1490e. 
"(6) such sums as may be necessary for purposes of section 525 
(a); 
"(7) not to exceed $100,000,000 for each such year for grants 
Post, p. 1249. 
under section 531, of which 5 per centum shal} be available for 
technical assistance; and 
"(8) such sums as may be required by the Secretary to admin-
ister the provisions of sections 235 and 236 of the National 
12 use 1715z, 
Housing Act and section 8 of the United States Housing Act of 
1715Z-1. 
1937. 
42 use 1437f. 
«'(g) -pjjg Secretary may enter into rented assistance contracts 
aggregating such sums as may be approved in appropriation Acts 
Post, p. 1248. 
under section 521(aX2XA) during fiscal years 1984 and 1985.". 
Ante, p. 746. 
(b) Section 515(bX5) of such Act is amended bv striking out 
"November 30, 1983" and inserting in lieu thereof September 30, 
1985". 
Ante, p. 746. 
(c) Section 517(aXl) of such Act is amended bv striking out 
"November 30, 1983" and inserting in lieu thereof September 30, 
1985". 
Ante, p. 746. 
(d) Section 523(f) of such Act is amended— 
42 use 1490c. 
(1) by striking out the first sentence; and 
(2) by striking out "November 30, 1983" and inserting in lieu 
thereof "September 30,1985". 
(e) Section 523(g) of such Act is amended— 
(1) by striking out "fiscal vear 1982" in the second sentence 
and inserting in lieu thereof fiscal year 1985"; and 
(2) by striking out the first sentence. 
Rent increases, 
limitations. 
42 use 1485. 
SECTION 515 AMENDMENTS 
SEC. 512. (a) Section 515 of the Housing Act of 1949 is amended by 
adding at the end thereof the following: 
"(g) The Secretary shall limit increases in rents on or after the 
date of enactment of this subsection for newly constructed or sub-
stantially rehabilitated projects assisted under this section to the 
lesser of the actual operating cost increases incurred or the amount 
of operating cost increases incurred with respect to comparable 
rental dwelling units of various sizes and types in the same market 
area which are suitable for occupancy by families and persons 
assisted under this section. Where no comparable dwelling units 
exist in the same market area, the Secretary shall have authority to 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1245 
approve such increases in accordance with the best available data 
regarding operating cost increases in rental dwelling units. 
"(h) After approving a project involving newly constructed or 
substantially rehabilitated units under this section, the Secretary 
shall limit cost increases to those approved by the Secretary. The 
Secretary may approve those increases only for unforeseen factors 
beyond the owner s control, design changes required by the Secre-
tary or the local government, or changes in finanping approved by 
the Secretary. 
"(i) For the purpose of achieving the lowest cost in providing units 
in newly constructed projects assisted under this section, the Secre-
tary shall give a preference in entering into contracts under this 
section for projects which are to be located on specific tracts of land 
provided by States, units of local government, or others if the 
Secretary determines that the tract of land is suitable for such 
housing, and that affording such preference will be cost effective, 
"(j) The Secretary shall assure that management fees are not 
excessive when a project developed under this section is managed by 
the developer or an affiliate of the developer. 
"(k) For purposes of determining the market feasibility of any 
project to be assisted under this section— 
"(1) in the case of any applicant whose project is expected to 
utilize rental assistance payments under section 521, the Secre-
tary shall only require such applicant to demonstrate that a 
market exists for persons and families eligible for such rental 
assistance pa3nnents; and 
"(2) in the case of any applicant whose project is expected 
to utilize any assistance under a program of a State, or political 
subdivision thereof, that is similar to such assistance payments 
under section 521, the Secretary shall only require such appli-
cant to demonstrate that— 
"(A) a market exists for persons and families eligible for 
such program of assistance; 
"(B) such program of assistance will provide rental assist-
ance for a period of not less than five years, and for the 
term of the loan remaining after the period of such assist-
ance, that an adequate rental market exists for the project 
without such assistance; and 
"(C) during the term of such rental assistance contracts, 
such State or political subdivision shall make available the 
amounts required for such rental assistance not less than 
annually. 
"(1) The Secretary shall establish standards for housing and 
related facilities rehabilitated or repaired with amounts received 
under a login made or insured under this section. Standards estab-
lished by the Secretary under this subsection shall provide that 
except for substantial rehabilitation the particular items or systems 
repaired or rehabilitated must meet appropriate levels of quality or 
performance comparable to those levels prescribed by the Secretary 
of Housing and Urban Development for rehabilitation, but shall not 
require that such items or systems or the remainder of the property 
meet the standards which are applicable to new construction. The 
Secretary shall ensure that standards prescribed under this subsec-
tion provide decent, safe, and sanitary housing and related facilities, 
"(m) The Secretary may not deny assistance under this section or 
section 521 on the basis that the project involved is to be located on 
more than one site. 
Management 
fees. 
42 u s e 1490a. 
Housing 
standards. 
97 STAT. 1246 
PUBLIC LAW 98-181—NOV. 30, 1983 
42 use 1490a. 
Post, p. 1248. 
Income 
determination. 
42 use 1437 
note. 
42 use 1485. 
"(n) The Secretary may not (1) deny assistance under this section 
on the basis that rental assistance pa)anents under section 521 may 
be required unless the authority to provide such assistance is not 
available; or (2) promulgate any regulation that would have the 
effect of denying occupancy to eligible persons on the basis that such 
persons require rental assistance payments under section 521. 
"(oXD To the extent assistance is available under section 521(aX2), 
not more than 25 per centum of the dwelling units which were 
available for occupancy under this section prior to the date of 
enactment of this subsection, and which will be leased on or after 
such effective date shall be available for leasing by low income 
persons and families other than very low-income persons and 
families. 
"(2) To the extent assistance is available under section 521(aX2), 
not more than 5 per centum of the dwelling units which become 
available for occupancy under this section on or after the date of 
enactment of this subsection shall be available for leasing by low 
income persons and families other than very low-income persons 
and families. 
"(3) Units in projects financed under this section which become 
available for occupancy after the date of enactment of this subsec-
tion shall not be available for occupancy by persons and families 
other than very low-income persons and families if the authority to 
provide assistance for such persons is available. 
"(p) In determining the income of a person or family occupying 
housing financed under this section, the Secretary shall consider the 
value of that person's or family's assets in the same manner as the 
Secretary of Housing and Urban Development considers such value 
for the purpose of the United States Housing Act of 1937.", 
(b) Section 515(b) of such Act is amended— 
(1) by striking out "and" at the end of clause (5); 
(2) by striking out the period at the end of clause (6) and 
inserting in lieu thereof "; and"; and 
(3) by adding at the end thereof the following: 
"(7) loans may be made to owners who are otherwise eligible 
under this section to purchase and convert single-family resi-
dences to rental units of two or more dwellings.". 
(c) Section 515 of such Act is amended— 
(1) by striking out subsection (aX2); 
(2) by redesignating subsections (aX3) and (aX4) as subsections 
(aX2) and (aX3), respectively; 
(3) by striking out subsection (bX2); and 
(4) by redesignating subsections (bX3), (bX4), (bX5), (bX6), and 
(bX7) as subsections (bX2), (bX3), (bX4), (bX5), and (bX6), 
respectively. 
(d) Section 515(c) of such Act is amended by adding at the end 
thereof the following: "A loan may be made or insured under 
subsection (a) or (b) with respect to detached units, including those 
on scattered sites, for cooperative housing.". 
(e) Section 515(dXl) of such Act is amended by inserting before the 
first semicolon the following: ", and such term also means manufac-
tured home rental parks where either the lots or both the lots and 
the homes are available for use by occupants eligible under this 
section". 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1247 
FARM LABOR HOUSING 
SEC. 513. Section 516 of the Housing Act of 1949 is amended by 
adding at the end thereof the following subsection: 
"(i) The Secretary shall utilize not more than 10 per centum of the 
amounts available for any fiscal year for purposes of this section for 
financial assistance to eligible private and public nonprofit agencies 
to encourage the development of domestic and migrant farm labor 
housing projects under this title.". 
42 use 1486. 
INSURED RURAL HOUSING LOANS 
SEC. 514. (a) Section 517 of the Housing Act of 1949 is amended— 
42 USC 1487. 
(1) by striking out all after "insured" in subsection (a) and 
inserting in lieu thereof a period and the following: "The 
amount of such a loan to a low income person or family shall 
not exceed the amount necessary to provide adequate housing 
which is modest in size, design, and cost (as determined by the 
Secretary)."; and 
(2) by striking out "(bX4)" in subsection (b) and inserting in 
lieu thereof "(bX3)". 
(b) Section 517(j) of such Act is amended— 
(1) by striking out "; and" at the end of paragraph (5) and 
inserting in lieu thereof a period; and 
(2) by striking out paragraph (6). 
(c) Section 517(o) of such Act is repealed. 
(d) Section 517 of such Act is amended by adding at the end 
thereof the following: 
"(o) The Secretary shall promulgate rules which encourage the 
Rules. 
rehabilitation or purchase of existing buildings for the purpose of 
providing housing which is economical in cost and operation.". 
DEFINITION OF RURAL AREA 
SEC. 515. Section 520 of the Housing Act of 1949 is amended by 
adding at the end thereof the following new sentence: "For purposes 
of this title, any area classified as 'rural' or a 'rural area' prior to 
the receipt of data from or after the 1980 decennial census and 
determined not to be 'rural' or a 'rural area' as a result of such data 
shall continue to be so classified through the end of fiscal year 1984, 
if such area has a population in excess of 10,000 but not in excess of 
20,000.". 
42 USC 1490. 
SHARED HOUSING FOR THE ELDERLY AND HANDICAPPED 
SEC. 516. Section 521(aX2) of the Housing Act of 1949 is amended 
by adding the following new subparagraph at the end thereof: 
"(E) In order to assist elderly or handicapped persons or families 
who elect to live in a shared housing arrangement in which they 
benefit as a result of sharing the facilities of a dwelling with others 
in a manner that effectively and efficiently meets their housing 
needs and thereby reduces their cost of housing, the Secretary shall 
permit rental assistance to be used by such persons or families if the 
shared housing arrangement is in a single-family dwelling. For the 
purpose of this subparagraph, the Secretary shall prescribe mini-
mum habitability standards to assure decent, safe, and sanitary 
42 USC 1490a. 
97 STAT. 1248 
PUBLIC LAW 98-181—NOV. 30, 1983 
housing for such families while taking into account the special 
circumstances of shared housing.". 
42 use 1490a. 
42 use 1484, 
1485. 
42 use 1490J. 
RENTAL ASSISTANCE TENANT CONTRIBUTION 
SEC. 517. (a) Section 521(aX2XA) of the Housing Act of 1949 is 
amended by striking out the last two sentences. 
(b) Section 521(a) of such Act is amended by adding at the end 
thereof the following: 
"(3XA) In the case of loans under sections 514 and 515 approved 
prior to the effective date of this paragraph with respect to which 
rental assistance is provided, the rent for tenants receiving such 
assistance shall not exceed the highest of (i) 30 per centum of 
monthly adjusted income, (ii) 10 per centum of monthly income, or 
(iii) if the person or family is receiving payments for welfare assist-
ance from a public agency, the portion of such payments which is 
specifically designated by such agency to meet the person's or 
family's housing costs. 
"(B) In the case of a section 515 loan approved prior to the 
effective date of this paragraph with respect to which interest 
credits are provided, the tenant's rent shall not exceed the highest 
of (i) 30 per centum of monthly adjusted income, (ii) 10 per centum of 
monthly income, or (iii) if the person or family is receiving payments 
for welfare assistance from a public agency, the portion of such 
payments which is specifically designated by such agency to meet 
the person's or family's housing costs, or, where no rental assistance 
authority is available, the rent level established on a basis of a 1 per 
centum interest rate on debt service. 
"(C) No rent for a unit financed under section 514 or 515 shall be 
increcised as a result of this subsection or other provision of Federal 
law or Federal regulation by more than 10 per centum in any 
twelve-month period, unless the increase above 10 per centum is 
attributable to increases in income which are unrelated to this 
subsection or other law, or regulation. 
"(4) In the case of a loan with respect to the purchase of a 
manufactured home with respect to which rental assistance is pro-
vided, the monthly payment for principal and interest on the manu-
factured home and for lot rental and utilities shall not exceed the 
highest of (A) 30 per centum of monthly adjusted income, (B) 10 per 
centum of monthly income, or (C) if the person or family is receiving 
payments for welfare assistance from a public agency, the portion of 
such payments which is specifically designated by such agency to 
meet the person's or family's housing costs.". 
(c) Section 521(aX2XA) of such Act is amended by striking out "25 
per centum of income." and inserting in lieu thereof "the highest of 
(ij 30 per centum of monthly adjusted income, (ii) 10 per centum of 
monthly income; or (iii) if the person or family is receiving payments 
for welfare assistance from a public agency, the portion of such 
payments which is specifically designated by such agency to meet 
the person's or family's housing costs. Any rent or contribution of 
any recipient shall not increase as a result of this section or any 
other provision of Federal law or regulation by more than 10 per 
centum during any twelve-month period, unless the increase above 
10 per centum is attributable to increases in income which are 
unrelated to this subsection or other law or regulation.". 
(d) Section 530 of such Act is amended by striking out "25" and 
inserting in lieu thereof "30". 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1249 
(e) Section 521 of such Act is amended by adding at the end 
thereof the following: 
"(dXlXA) In entering into contracts for assistance under this 
section and utilizing rental assistance authority which becomes 
available, the Secretary shall first assure that expiring contracts are 
extended for those units occupied by persons and families of low 
income, and that additional assistance is used where necessary to 
provide the full amount authorized pursuant to existing contracts. 
"(B) Remaining funds shall be used for contracts which assist very 
low-income persons and families occupying projects receiving com-
mitments under section 514, 515, or 516 after fiscal year 1983, except 
that up to 5 per centum of the units assisted may be occupied by 
persons and families of low income. 
"(C) To the extent any funds are available after providing assist-
emce in accordance with subparagraphs (A) and (B), the Secretary 
shall provide additional assistance to existing projects which would 
become occupied and affordable by very low-income persons and 
families, except that up to 5 per centum of the units assisted may be 
Ofcupied by persons and families of low income. 
"(2) The Secretary shall transfer rental assistance contract 
authority under this section from projects where such authority is 
unused after initial rentup and not needed because of a lack of 
eligible tenants in the area to projects where such authority is 
needed. 
"(e) Any rent or contribution of any recipient shall not increase as 
a result of this section, any amendment thereto, or any other 
provision of Federal law or regulation by more than 10 per centum 
during any twelve-month period, unless the increase above 10 per 
centum is attributable to increases in income which are unrelated to 
this subsection or other law or regulation.". 
(f) The amendments made by this section shall take effect six 
months after the date of enactment of this Act, or upon the earlier 
promulgation of regulations implementing this section by the 
Secretary. 
TECHNICAL AND SUPERVISORY ASSISTANCE 
42 u s e 1490a. 
Contracts. 
42 use 
1484-1486. 
Transfer 
authority. 
Effective date. 
42 u s e 1490a 
note. 
SEC. 518. (a) The last sentence of section 525(b) of the Housing Act 
of 1949 is amended by striking out all after "sooner" and inserting 
in lieu thereof a period. 
(b) Section 525(c) of such Act is repealed. 
42 u s e 1490e. 
CONDOMINIUM HOUSING 
SEC. 519. (a) Section 526 of the Housing Act of 1949 is amended— 
(1) by striking out "in his discretion" in subsection (a); and 
(2) by striking out "in his discretion" in subsection (c). 
42 u s e 1490f. 
FHA INSURANCE 
SEC. 520. Title V of the Housing Act of 1949 is amended by adding 
at the end thereof the following: 
FHA INSURANCE 
"SEC. 531. The Secretary is authorized to act as an agent of the 
Secretary of Housing and Urban Development to recommend insur-
42 u s e 1490k. 
1 1 - 1 9 4 O - 85 — 41 : QL 3 
97 STAT. 1250 
PUBLIC LAW 98-181—NOV. 30, 1983 
12 use 1709. 
ance of any mortgage meeting the requirements of section 203 of the 
National Housing Act.". 
PROCESSING OF APPUCATION 
SEC. 521. Title V of the Housing Act of 1949 is amended by adding 
at the end thereof the following new section: ' 
"PROCESSING OF APPUCATIONS 
42 use 1490Z. 
"SEC. 532. (a) The Secretary shall, in making assistance available 
under this title, give a priority to applications submitted by— 
"(1) persons and families that have the greatest housing 
assistance needs because of their low income and their residing 
in inadequate dwellings; 
"(2) applicants applying for assistance for projects that will 
serve such persons and families; and 
"(3) applicants residing in areas which are the most rural in 
character. 
42 use 1483. 
"(b) In making available the assistance authorized by section 513 
42 use 1490a. 
and section 521(a) with respect to projects involving insured and 
guaranteed loans and interest credits and rental assistance pay-
ments, the Secretary shall process and approve requests for such 
assistance in a manner that provides for a preliminary reservation 
of assistance at the time of initial approval of the project.". 
RURAL H O U S I N G PRESERVATION GRANT PROGRAM 
SEC. 522. Title V of the Housing Act of 1949 is amended by adding 
at the end thereof the following: 
HOUSING PRESERVATION GRANTS 
42 use 1490m. 
"SEC. 533. (a) The purpose of this section is to authorize the 
Secretary to make grants to eligible grantees including private 
nonprofit organizations, Indian tribes, general units of local govern-
ment, counties. States, and consortia of other eligible grantees, in 
order to— 
"(1) rehabilitate single family housing in rural areas which is 
owned by low- and very low-income persons and families, and 
"(2) rehabilitate rental properties or cooperative housing 
which has a membership resale structure that enables the 
cooperative to maintain affordability for persons of low income 
in rural areas serving low- and very low-income occupants. 
The Secretary may also provide assistance payments as provided by 
Ante, p. 1181. 
section 8(o) of the United States Housing Act of 1937 upon the 
request of grantees in order to minimize the displacement of very 
low-income tenants residing in units rehabilitated with assistance 
under this section. 
"(b) Rehabilitation programs assisted under this section shall— 
"(1) be used to provide loans or grants to owners of single 
family housing in order to cover the cost of repairs and 
improvements; 
(2) be used to provide interest reduction payment; 
"(3) be used to provide loans or grants to owners of rental 
housing, except that rental rehabilitation assistance provided 
under this subsection for any structure shall not exceed 75 per 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1251 
1^^ 
centum of the total costs associated with the rehabilitation of 
that structure; 
"(4) be used to provide other comparable assistance that the 
Secretary deems appropriate to carry out the purpose of this 
section, designed to reduce the costs of such repair and rehabili-
tation in order to make such housing affordable by persons of 
low income and, to the extent feasible, by persons and families 
whose incomes do not exceed 50 per centum of the area median 
income; 
"(5) benefit low- and very low-income persons and families in 
rural areas, without causing the displacement of current resi-
dents; and 
"(6) raise health and safety conditions to meet those specified 
in section 509(a). 
"(cXD The Secretary shall allocate rehabilitation grant funds for 
use in each State on the basis of a formula contained in a regulation 
prescribed by the Secretary using the average of the ratios 
between— 
"(A) the population of the rural areas in that State and the 
population of the rural areas of all States; 
"(B) the extent of poverty in the rural areas in that State and 
the extent of poverty in the rural areas of all States; and 
"(C) the extent of substandard housing in the rural areas of 
that State and the extent of substandard housing in the rural 
areas of all States. 
Any funds which are allocated to a State but uncommitted to 
grantees will be transferred to the State office of the Farmers Home 
Administration in a timely manner and be used for authorized 
rehabilitation activities under section 504. 
"(2) Unless there is only one eligible grantee in a State, a single 
grantee may not receive more than 50 per centum of a State's 
allocation. 
"(dXD Eligible grantees may submit a statement of activity to the 
Secretary at the time specified by the program administrator, con-
taining a description of its proposed rehabilitation program. The 
statement shall consist of the activities each entity proposes to 
undertake for the fiscal year, and the projected progress in carrying 
out those activities. The statement of activities shall be made avail-
able to the public for comment. 
"(2) In preparing such statement, the grantee shall consult with 
and consider the views of appropriate local officials. 
"(3) The Secretary shall evaluate the merits of each statement on 
the basis of such criteria as the Secretary shall prescribe, including 
the extent— 
"(A) to which the repair and rehabilitation activities will 
assist persons of low income who lack adequate shelter, with 
priority given to applications assisting the maximum number of 
persons and families whose incomes do not exceed 50 per 
centum of the area median income; 
"(B) to which the repair and rehabilitation activities include 
the participation of other public or private organizations in 
providing assistance, in addition to the assistance provided 
under this section, in order to lower the costs of such activities 
or provide for the leveraging of available funds to supplement 
the rural housing preservation grant program; 
Ante, p. 1242. 
Funding 
allocations. 
Uncommitted 
funds. 
42 u s e 1474. 
Activity 
statements by 
grantees. 
Public 
availability. 
Evaluation by 
Secretary. 
97 STAT. 1252 
PUBLIC LAW 98-181—NOV. 30, 1983 
Rental or 
cooperative 
housing 
assistance. 
42 u s e 2000a 
note. 
82 Stat. 73. 
"(C) to which such activities will be undertaken in rural areas 
having populations below 10,000 or in remote parts of other 
rural areas; 
"(D) to which the repair and rehabilitation activities may be 
expected to result in achieving the greatest degree of repair or 
improvement for the least cost per unit or dwelling; 
"(E) to which the program would minimize displacement; 
"(F) to which the program would alleviate overcrowding in 
rural residences inhabited by low- and very low-income persons 
and families; 
"(G) to which the program would minimize the use of grant 
funds for administrative purposes; and 
"(H) to which the owner agrees to meet the requirement of 
subsection (eXlXBXiv) for a period longer than 5 years; 
and shall assess the demonstrated capacity of the grantee to carry 
out the program as well as the financial fesisibility of the program. 
"(4) The amount of assistance provided under this section with 
respect to any housing shall be the least amount that the Secretary 
determines is necessary to provide, through the repair and rehabili-
tation of such housing, decent housing of modest design that is 
affordable for persons of low income. 
"(eXD Assistance under this section may be provided with respect 
to rental or cooperative housing only i
f
— 
"(A) the owner has entered into such agreements with the 
Secretary as may be necessary to assure compliance with the 
requirements of this section, to assure the financial feasibility of 
such housing, and to carry out the other provisions of this 
section; 
"(B) the owner agrees— 
"(i) to pass on to the tenants any reduction in the debt 
service pajmients resulting from the assistance provided 
under this section; 
"(ii) not to convert the units to condominium ownership 
(or in the case of a cooperative, to condominium ownership 
or any form of cooperative ownership not eligible for assist-
ance under this section); 
"(iii) not refuse to rent a dwelling unit in the structure to 
a family solely because the family is receiving or is eligible 
to receive assistance under any Federal, State, or local 
housing assistance program; and 
"(iv) that the units repaired and rehabilitated with such 
assistance will be occupied, or available for occupancy, by 
persons of low income; 
during the 5-year period beginning on the date on which the 
units in the housing are available for occupancy; 
"(C) the unit of general local government or nonprofit organi-
zation that receives the assistance certifies to the satisfaction of 
the Secretary that the assistance will be made available in 
conformity with Public Law 88-352 and Public Law 90-284; 
"(D) the owner agrees to enter into and abide by written 
leases with the tenants, which leases shall provide that tenants 
may be evicted only for good cause; and 
"(E) the unit of general local government or nonprofit organi-
zation will agree to supervise repairs and rehabilitation and will 
agree to have a disinterested party inspect such repairs and 
rehabilitation. 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1253 
"(2) Assistance under this section provided with respect to any 
housing other than rental or cooperative housing may be provided 
only if the owner complies with the requirements set forth in 
subparagraph (E) of paragraph (1) and any other requirements 
established by the Secretary to carry out the purpose of this section. 
"(3XA) The Secretary shall provide that if the owner or his or her 
successors in interest fail to carry out the agreements described in 
subparagraphs (A) and (B) of paragraph (1) during the applicable 
period, the owner or his or her successors in interest shall make a 
payment to the Secretary of an amount that equals the total amount 
of assistance provided under this section with respect to such hous-
ing, plus interest thereon (without compounding), for each year and 
any fraction thereof that the assistance was outstanding, at a rate 
determined by the Secretary taking into account the average yield 
on outstanding marketable long-term obligations of the United 
States during the month preceding the date on which the assistance 
was made available. 
"(B) Notwithstanding any other provision of law, any assistance 
provided under this section shall constitute a debt, which is payable 
in the case of any failure to carry out the agreements described in 
subparagraphs (A), (B), and (C) of paragraph (1), and shall be secured 
by the security instruments provided by the owner to the Secretary. 
"(f) The Secretary shall provide for such advance payments of 
assistance under this section as the Secretary determines is neces-
sary to effectively carry out the provisions of this section. 
"(g) The Secretary shall, at least on an annual basis, make such 
review and audits as may be necessary or appropriate to determine 
whether the grantee has carried out its activities in a timely 
manner and in accordance with the requirements of this section, the 
degree to which the activities assisted benefitted persons of low 
income and very low-income who lacked adequate housing, and 
whether the grantee has a continuing capacity to carry out the 
activities in a timely manner. The Secretary may adjust, reduce, or 
withdraw resources made available to grantees receiving assistance 
under this section, or take other action as appropriate in accordance 
with the findings of these reviews and audits. Any amounts which 
became available as a result of actions under this subsection shall be 
reallocated in the year in which they become available to such 
grantee or grantees as the Secretary may determine. 
"(h) The Secretary is authorized to prescribe such rules and 
regulations and make such delegations of authority as he deems 
necessary to carry out this section within 90 days after the date of 
enactment of this section. 
"(i) The Secretary shall establish procedures which support 
national historic preservation objectives and which assure that, if 
any rehabilitation proposed to be assisted under this section would 
affect property that is included or is eligible for inclusion on the 
National Register of Historic Places, such activity shall not be 
undertaken unless (1) it will reasonably meet the standards for 
rehabilitation issued by the Secretary of the Interior and the appro-
priate State historic preservation officer is afforded the opportunity 
to comment on the specific rehabilitation plan, or (2) the Advisory 
Council on Historic Preservation is afforded an opportunity to com-
ment on cases for which the recipient of assistance, in consultation 
with the State historic preservation officer, determines that the 
proposed rehabilitation activity cannot reasonably meet such stand-
ards or would adversely affect historic property as defined therein. 
Advance 
assistance 
payments. 
Review and 
audits. 
Procedures 
supporting 
historic 
preservation. 
97 STAT. 1254 
PUBLIC LAW 98-181—NOV. 30, 1983 
Report to 
Congress. 
"(j) Not later than 180 days after the close of each fiscal year in 
which assistance under this section is furnished, the Secretary shall 
submit to the Congress a report which shall contain— 
"(1) a description of the progress made in accomplishing the 
objectives of this section; and 
"(2) a summary of the use of such funds during the preceding 
year. 
The Secretary shall require grantees under this section to submit to 
him such reports, and other information as may be necessary in 
order for the Secretary to make the report required by this 
subsection.". 
MISCELLANEOUS 
SEC. 523. Title V of the Housing Act of 1949 is amended by adding 
at the end thereof the following: 
Publication in 
Federal 
Register. 
42 u s e 1490n. 
Transmittal to 
congressional 
committees. 
REVIEW OF RULES AND REGULATIONS 
"SEC. 534. (a) Notwithstanding any other provision of law, no rule 
or regulation pursuant to this title may become effective unless it 
has first been published for public comment in the Federal Register 
for at least 60 days, and published in final form for at least 30 days. 
"(b) The Secretary shall transmit to the chairman and ranking 
Member of the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Banking, Finance and Urban 
Affairs of the House, all rules and regulations at least 15 days before 
they are sent to the Federal Register for purposes of subsection (a). 
"(c) The provisions of this section shall not apply to a rule or 
regulation which the Secretary certifies is issued on an emergency 
basis. 
42 u s e 1490o. 
Export-Import 
Bank Act 
Amendments of 
1983. 
12 u s e 635 note. 
RECIPROCITY IN APPROVAL OF HOUSING SUBDIVISIONS AMONG 
FEDERAL AGENCIES 
"SEC. 535. The Secretary of Agriculture, the Secretary of Housing 
and Urban Development, and the Administrator of Veterans' Af^ 
fairs shall each accept an administrative approval of any housing 
subdivision made by any of the others so that not later than 
January 1, 1984, there is total reciprocity for housing subdivision 
approvals among the agencies which they head.". 
TITLE VI—EXPORT-IMPORT BANK ACT AMENDMENTS OF 
1983 
SHORT TITLE 
SEC. 601. This title may be cited as the "Export-Import Bank Act 
Amendments of 1983". 
PART A—EXPORT-IMPORT BANK ACT AMENDMENTS 
Ante, p. 916. 
EXTENSION OF THE EXPORT-IMPORT BANK ACT 
SEC. 611. Section 8 of the Export-Import Bank Act of 1945 (12 
U.S.C. 635f) is amended by striking out "November 18, 1983" and 
inserting in lieu thereof "September 30,1986". 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1255 
COMPETITIVE MANDATE 
SEC. 612. (a) The second sentence of section 2(bXlXA) of the 
Export-Import Bank Act of 1945 (12 U.S.C. 635(bXlXA)) is amended— 
(1) by inserting "in all its programs" after "objective"; and 
(2) by inserting "fully" after "which are". 
(b) The first sentence of section 2(bXlXB) of such Act (12 U.S.C. 
635(bXlXB)) is amended by striking out "It is" and all that follows 
through "exports of other countries;" and inserting in lieu thereof 
the following: "It is further the policy of the United States that 
loans made by the Bank in all its programs shall bear interest at 
rates determined by the Board of Directors, consistent with the 
Bank's mandate to support United States exports at rates and on 
terms and conditions which are fully competitive with exports of 
other countries, and consistent with international agreements. For 
the purpose of the preceding sentence, rates and terms and condi-
tions need not be equivalent to those offered by foreign countries, 
but should be established so that the effect of such rates, terms, and 
conditions for all the Bank's programs, including those for small 
businesses and for medium-term financing, will be to neutralize the 
effect of such foreign credit on international sales competition. The 
Bank shall consider its average cost of money as one factor in its 
determination of interest rates, where such consideration does not 
impair the Beuik's primary function of expanding United States 
exports through fully competitive financing. It is also the policy of 
the United States". 
(c) The first sentence of section 2(bXlXB) of such Act (12 U.S.C. 
635(bXlXB)), as in effect on the day before the date of the enactment 
of this title, is amended by inserting "export trading companies," 
sifter "independent export firms,". 
ADVISORY COMMITTEE 
SEC. 613. Section 3(d) of the Export-Import Bank Act of 1945 (12 
U.S.C. 635a(d)) is amended to read as follows: 
"(dXlXA) There is established an Advisory Committee to consist of 
twelve members who shall be appointed by the Board of Directors on 
the recommendation of the President of the Bank. 
"(B) Such members shall be broadly representative of production, 
commerce, 
finance, 
agriculture, 
labor, 
services, and State 
government. 
"(2) Not less than three members appointed to the Advisory 
Committee shall be representative of the small business community. 
"(3) The Advisory Committee shall meet at least once each 
quarter. 
"(4) The Advisory Committee shall advise the Bank on its pro-
grams, and shall submit, with the report specified in section 
2(bXlXA) of this Act, its own comments to the Congress on the 
extent to which the Bank is meeting its mandate to provide competi-
tive financing to expand United States exports, and any suggestions 
for improvements in this regard.". 
Comments, 
submittal to 
(Congress. 
12 use 635. 
TERMS OF DIRECTORS 
SEC. 614. (a) Section 3(c) of the Export-Import Bank Act of 1945 (12 
U.S.C. 635a(c)) is amended— 
97 STAT. 1256 
PUBLIC LAW 98-181—NOV. 30, 1983 
(1) by redesignating the first sentence through the seventh 
sentence of such section as paragraphs (1) through (7), 
respectively; 
(2) in the fifth paragraph of such section, as so redesignated 
by paragraph (1), by striking out "Terms of the directors shall 
be at the pleasure of the President of the United States, and 
the" and inserting in lieu thereof "The"; and 
(3) by adding at the end thereof the following: 
"(SKA) The terms of the directors, including the President and the 
First Vice President of the Bank, appointed under this section shall 
be four years, except that— 
"(i) during their terms of office, the directors shall serve at 
the pleasure of the President of the United States; 
"(ii) the term of any director appointed after the date of 
enactment of this paragraph to serve before January 20, 1985, 
shall expire on January 20, 1985; 
"(iii) of the directors first appointed to serve beginning on or 
after January 21, 1985, two directors (other than the President 
and First Vice President of the Bank) shall be appointed for 
terms of two years, as designated by the President of the United 
States at the time of their appointment; and 
"(iv) any director first appointed to serve for a term beginning 
on any date after January 21, 1985, shall serve only for the 
remainder of the period for which such director would have 
been appointed if such director's term had begun on January 21, 
1985. If such term would have expired before the date on which 
such director's term actually begins, the term of such director 
shall be the four-year period, or remainder thereof, as if such 
director had been preceded by a director whose term had begun 
on January 21, 1985. 
"(B) Of the five members of the Board appointed by the President, 
not less than one such member shall be selected from among the 
small business community and shall represent the interests of small 
business. 
Vacancy. 
"(C) Any person chosen to fill a vacancy shall be appointed only 
for the unexpired term of the director whom such person succeeds. 
"(D) Any director whose term has expired may be reappointed.". 
12 use 635a 
(b) In order to carry out the amendment made by subsection (a) 
note. 
regarding section 3(c)(8XB) of the Export-Import Bank Act of 1945, 
Ante, p. 1255. 
^^le first member, other than a member who will serve as Chairman 
or Vice Chairman of the Bank, appointed by the President of the 
United States to the Board of Directors of the Export-Import Bank 
of the United States after the date of the enactment of this section 
shall be selected from among the small business community and 
shall represent the interests of small business. 
REPORT ON AUTHORITY 
SEC. 615. Section 7(aX2) of the Export-Import Bank Act of 1945 (12 
U.S.C. 635e(a)(2)) is amended to read as follows: 
"(2)(AXi) Not later than March 31 of each fiscal year, the Presi-
dent of the United States shall determine whether the authority 
available to the Bank for such fiscal year will be sufficient to meet 
the Bank's needs, particularly those needs arising from— 
"(I) increases in the level of exports unforeseen at the time of 
the original budget request for such fiscal year; 
"(II) any increased foreign export credit subsidies; or 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1257 
"(III) the lack of progress in negotiations to reduce or elimi-
nate export credit subsidies. 
"(ii) Not later than April 15 of each year, the President of the 
United States shall transmit to the Congress a report on such 
determination. 
"(BXi) If the President of the United States finds that the amount 
of direct loan authority or guarantee authority available to the 
Bank for the fiscal year involved exceeds the amount which will be 
necessary to carry out the Bank's functions consistent with the 
availability of qualified applications and limitations imposed by law 
during such year, the President of the United States shall promptly 
transmit to the Congress a request for legislation to eliminate the 
amount of such excess direct loan, loan guarantee, or insurance 
authority. 
"(ii) The Bank shall continue to make remaining amounts of its 
authority available for the fiscal year involved, in accordance with 
its practices and the requirements of this Act, unless otherwise 
directed pursuant to law. . 
Transmittal to 
Congress. 
Presidential 
request for 
legislation 
to Congress. 
EXPORTS OF SERVICES 
SEC. 616. (a) Section 2 of the Export-Import Bank Act of 1945 (12 
U.S.C. 635) is amended— 
(1) in the second sentence of subsection (aXD, by inserting 
"and services" after "exchange of commodities"; 
(2) in the second sentence of subsection (bXlXA), by inserting 
"of goods and services" after "exports"; and 
(3) by inserting after subsection (bXl)(C) the following: 
"(DXi) It is further the policy of the United States to foster the 
delivery of United States services in international commerce. In 
exercising its powers and functions, the Bank shall give full and 
equ£d consideration to making loans and providing guarantees for 
the export of services (independently, or in conjunction with the 
export of msuiufactured goods, equipment, hardware or other capital 
goods) consistent with the Bank s policy to neutralize foreign subsi-
dized credit competition and to supplement the private capital 
market. 
"(ii) The Bank shall include in its annual report a summary of its 
programs regarding the export of services.". 
(b) Section 206 of the Export Trading Company Act of 1982 (Public 
Law 97-290) is amended— 
(1) by striking out "or" after "export accounts receivable" and 
inserting in lieu thereof a comma; and 
(2) by inserting after "exportable goods," the following: "ac-
counts receivable from leases, performance contracts, grant 
commitments, participation fees, member dues, revenue from 
publications, or such other collateral as the Board of Directors 
may deem appropriate,". 
12 u s e 635a-4. 
COMPETITIVE INSURANCE 
SEC. 617. Section 2 of the Export-Import Bank Act of 1945 (12 
U.S.C. 635) is amended by adding at the end thereof the following: 
"(dXD In canying out its responsibilities under this Act, the Bank 
shall work to ensure that United States companies are afforded 
an equal and nondiscriminatory opportunity to bid for insurance in 
connection with transactions assisted by the Bank. 
97 STAT. 1258 
PUBLIC LAW 98-181—NOV. 30, 1983 
"(2) In furtherance of such effort, the Chairman of the Bank shall 
review Bank policies and programs in regard to this issue, and in 
coordination with the United States Trade Representative and the 
appropriate agencies of the Department of State, the Department of 
the Treasury, and the Department of Commerce, undertake actions 
designed to promote equal and nondiscriminatory opportunities to 
bid for insurance in connection with all aspects of international 
trade activities. 
Bank report to 
"(3) The Bank shall report to the Committee or Banking, Finance 
congressional 
£
^
J
^
(
J Urban Affairs of the House of Representatives and the Commit-
tee on Banking, Housing, and Urban Affairs of the Senate not later 
than May 15, 1984, regarding— 
"(A) the existing obstacles to equal and nondiscriminatory 
bidding for insurance related to transactions assisted by the 
Bank; 
"(B) the efforts that the Bank has taken in addressing such 
problems; and 
"(C) recommendations for such legislative or administrative 
actions as the Bank considers necessary.". 
SMALL BUSINESS NEEDS 
SEC. 618. (a) Section 2(bXl) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635(bXl)) is amended— 
(1) in subparagraph (B), by striking out "that the Bank shall 
give due recognition to the policy stated in section 2(a) of the 
Small Business Act" and all that follows through "the Small 
Business Administration and other departments and agencies in 
matters affecting small business concerns;"; and 
Ante, p. 1257. 
(2) by adding at the end thereof the following: 
"(EXiXD It is further the policy of the United States to encourage 
the participation of small business in international commerce. 
"(II) In exercising its authority, the Bank shall develop a program 
which gives fair consideration to making loans and providing guar-
antees for the export of goods and services by small businesses, 
"(ii) It is further the policy of the United States that the Bank 
shall give due recognition to the policy stated in section 2(a) of the 
15 use 631. 
Small Business Act that 'the Government should aid, counsel, assist, 
and protect, insofar as is possible, the interests of small business 
concerns in order to preserve free competitive enterprise'. 
"(iii) In furtherance of this policy, the Board of Directors shall 
designate an officer of the Bank who— 
"(I) shall be responsible to the President of the Bank for all 
matters concerning or affecting small business concerns; and 
"(II) among other duties, shall be responsible for advising 
small business concerns of the opportunities for small business 
concerns in the functions of the Bank and for maintaining 
liaison with the Small Business Administration and other 
departments and agencies in matters affecting small business 
concerns. 
"(iv) The Director appointed to represent the interests of small 
Ante, pp. 1255, 
business under section 3(c) of this Act shall ensure that the Bank 
^^^^- 
carries out its responsibilities under clauses (ii) and (iii) of this 
subparagraph and that the Bank's financial and other resources are, 
to the maximum extent possible, appropriately used for small busi-
ness needs. 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1259 
"(v) To assure that the purposes of clauses (i) and (ii) of this 
subparagraph are carried out, the Bank shall make available, from 
the aggregate loan, guarantee, and insurance authority available to 
it, an amount to finance exports by small business concerns (as 
defined under section 3 of the Small Business Act) which shall be 
not less than— 
"(I) 6 per centum of such authority for fiscal year 1984; 
"(II) 8 per centum of such authority for fiscal year 1985; and 
"(III) 10 per centum of such authority for fiscal year 1986 and 
thereafter. 
"(vi) The Bank shall utilize the amount set aside pursuant to 
clause (v) of this subparagraph to offer financing for small business 
exports on terms which are fully competitive with regard to interest 
rates and with regard to the portion of financing which may be 
provided, guaranteed, or insured. Financing under this clause (vi) 
shall be available without regard to whether financing for the 
particular transaction was disapproved by any other Federal 
agency. 
"(viiXD The Bank shall utilize a part of the amount set aside 
pursuant to clause (v) to provide lines of credit or guarantees to 
consortia of small or medium size banks, export trading companies, 
State export finance agencies, export financing coop|eratives, small 
business investment companies (as defined in section 103 of the 
Small Businss Investment Act of 1958), or other financing institu-
tions or entities in order to finance small business exports. 
"(II) Financing under this clause (vii) shall be made available only 
where the consortia or the participating institutions agree to under-
take processing, servicing, and credit evaluation functions in con-
nection with such financing. 
"(Ill) To the maximum extent practicable, the Bank shall delegate 
to the consortia the authority to approve financing under this clause 
(vii). 
"(IV) In the administration of the program under this clause (vii), 
the Bank shall provide appropriate technical assistance to partici-
pating consortia and may require such consortia periodically to 
furnish information to the Bank regarding the number and amount 
of loans made and the creditworthiness of the borrowers. 
"(viii) In order to assure that the policy stated in clause (i) is 
carried out, the Bank shall promote small business exports and its 
small business export financing programs in cooperation with the 
Secretary of Commerce, the Office of International Trade of the 
Small Business Administration, and the private sector, particularly 
small business organizations. State agencies, chambers of commerce, 
banking organizations, export management companies, export trad-
ing companies, and private industry.'. 
(b) Section 9 of such Act (12 U.S.C. 635g) is amended— 
(1) in the first sentence of subsection (b), by inserting before 
the period at the end thereof the following: and of the activi-
ties of the member of the Board appointed to represent the 
interests of small business"; and 
(2) by adding at the end thereof the following: 
"(cXl) The Bank shall include in its annual report to the Congress 
a report on the allocation of the sums set aside for small business 
exports pursuant to section 2(bXlXE). 
(2) Such report shall specify— 
"(A) the total number and dollar volume of loans made from 
the sums set aside; 
Financing. 
15 u s e 632. 
15 u s e 662. 
Annual report to 
eongress. 
Ante, p. 1258. 
97 STAT. 1260 
PUBLIC LAW 98-181—NOV. 30, 1983 
Ante, p. 1258. 
Transmittal to 
congressional 
committees. 
Ante, p. 1258. 
"(B) the number and dollar volume of loans made through the 
consortia program under section 2(bXlXEXvii); 
"(C) the amount of guarantees and insurance provided for 
small business exports; 
"(D) the number of recipients of financing from the sums set 
aside who have not previously participated in the Bank's 
programs; 
"(E) the number of commitments entered into in amounts less 
than $500,000; and 
"(F) any recommendations for increasing the participation of 
banks and other institutions in the programs authorized under 
section 2(bXlXE). 
"(3) For the purpose of this subsection, the Bank's report shall be 
transmitted to the Committee on Small Business of the Senate and 
the Committee on Small Business of the House of Representatives.". 
(c) Section 20t)Xl) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(bXl)) is amended by adding at the end thereof the following: 
"(F) Consistent with international agreements, the Bank shall 
urge the Foreign Credit Insura[nce Association to provide coverage 
against 100 per centum of any loss with respect to exports having a 
value of less than $100,000.". 
SPECIAL FACILITIES IN SUPPORT OF UNITED STATES EXPORTS 
SEC. 619. (a) The Export-Import Bank Act of 1945 (12 U.S.C. 635 et 
seq.) is amended by adding at the end thereof the following: 
SPECIAL FACILITIES IN SUPPORT OF UNITED STATES EXPORTS 
12 use 635i-l. 
"SEC. 13. The Bank is authorized to establish general facilities 
consisting of guarantees and insurance in support of export transac-
tions to Brazil in the aggregate amount of $1,500,000,000 and to 
Mexico in the aggregate eimount of $500,000,000. No such guarantees 
may be made, or insurance issued, after March 31,1985.". 
(b) The first sentence of section 2(bX3) of the Export-Import Bank 
Act of 1945 (12 U.S.C. 635(bX3)) is amended by inserting "or general 
guarantee or insurance facility" after "no loan or financial 
guarantee". 
(c) Section 2(bX3XA) of the Export-Import Bank Act of 1945 (12 
U.S.C. 635(bX3XA)) is amended to read as follows: 
"(A) in the case of a loan or financial guarantee— 
"(i) a brief description of the purposes of the transaction; 
"(ii) the identity of the party or parties requesting the 
loan or financial guarantee; 
"(iii) the nature of the goods or services to be exported 
and the use for which the goods or services are to be 
exported; and 
'(iv) in the case of a general guarantee or insurance 
facility— 
"(I) a description of the nature and purpose of the 
facility; 
"(II) the total amount of guarantees or insurauice; 
and 
"(III) the reasons for the facility and its methods of 
operation; and". 
(d) Section 2(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(b)) is amended— 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1261 
(1) by redesignating paragraph (8) as paragraph (9); 
(2) by redesignating paragraph (7), the second time it appears 
therein, as paragraph (8); and 
(3) by adding at the end thereof the following: 
"(lOXA) The Bank shall not, without a specific authorization by 
law, guarantee, insure, or extend credit (or participate in the exten-
sion of credit) to— 
"(i) assist specific countries with balance of payments 
financing; or 
"(ii) assist (as the primary purpose of any such guarantee, 
msurance, or credit) any country in the management of its 
international indebtedness, other than its outstanding obli-
gations to the Bank. 
"(B) Nothing contained in subparagraph (A) shall preclude 
guarantees, insurance, or credit the primary purpose of which is 
to support United States exports.". 
TECHNICAL AMENDMENTS 
SEC. 620. (a) Section 2(bX4) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635(bX4)) is amended by striking out "he" wherever it 
appears and inserting in lieu thereof "the Secretary". 
(b) Section 3(e) of the Export-Import Bank Act of 1945 (12 U.S.U. 
635a(e)) is amended— 
(1) by striking out "his" and inserting in lieu thereof "such 
individual's"; and 
(2) by striking out "he" and inserting in lieu thereof "such 
individual". 
(c) Section 4 of the Export-Import Bank Act of 1945 (12 U.S.C. 
635b) is amended by striking out "he" and inserting in lieu thereof 
"the President". 
(d) Section 7(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635e(b)) is amended by striking out "he" wherever it appears and 
inserting in lieu thereof "the President". 
CAPITAL LEVEL OF THE BANK 
SEC. 621. The Export-Import Bank Act of 1945 (12 U.S.C. 635 et 
seq.) is amended by adding at the end thereof the following: 
CAPITAL LEVEL OF THE BANK 
"SEC. 14. After fiscal year 1983, if at the end of any fiscal quarter 
the value of the total capital stock and retained earnings of the 
Bank falls below 50 per centum of the value of the total capital stock 
and retained earnings of the Bank at the end of fiscal year 1983, the 
Board of Directors shall notify the Congress of the decrease in the 
level of the capital stock of the Bank not later than thirty days after 
the end of the fiscal quarter involved and the Congress shall take 
appropriate action.". 
Notification of 
Congress. 
12 use 635i-2. 
MEDIUM-TERM FINANCING 
SEC. 622. Section 2(a) of the Export-Import Bank Act of 1945 (12 
U.S.C. 635(a)) is amended by adding at the end thereof the following: 
97 STAT. 1262 
PUBLIC LAW 98-181—NOV. 30, 1983 
"(2) In order for the Bank to be competitive in all of its financing 
programs with countries whose exports compete with United States 
exports, the Bank shall establish a program that— 
"(A) provides medium-term financing where necessary to be 
fully competitive— 
"(i) at rates of interest to the customer which are equal to 
rates established in international agreements; and 
"(ii) in amounts up to 85 percent of the total cost of tbp 
exports involved; and 
"(B) enables the Bank to cooperate fully with the Secretary of 
Commerce and the Administrator of the Small Business Admin-
istration to develop a program for purposes of disseminating 
information (using existing private institutions) to small busi-
ness concerns regarding the medium-term financing provided 
under this paragraph.". 
REPORT TO CONGRESS 
SEC. 623. Section 9 of the Export-Import Bank Act of 1945 (12 
Ante, p. 1259. 
U.S.C. 635g) is amended by adding at the end thereof the following: 
"(dXD The report shall include a detailed description of all actions 
which have been taken by the Bank or which will be taken by the 
Bank— 
"(A) to maintain the competitive position of key linkage 
industries in the United States; 
"(B) to support industries which are engaged in the export of 
high value added products; 
'(C) to support industries which are engaged in the develop-
ment of new capital goods technology; 
"(D) to preserve and create high skilled jobs in the United 
States economy; and 
"(E) to enhance the opportunity for growth and expansion of 
small businesses and entrepreneurial enterprises. 
"(2) Such report shall include the comments of the Advisorv 
Committee regarding the objectives specified in paragraph (1).'. 
PART B—MATCHING CREDITS 
MATCHING CREDITS 
SEC, 631. Section 1912 of the Export-Import Bank Act Amend-
12 use 635a-3. 
ments of 1978 is amended— 
(1) by adding at the end of subsection (aXD the following: "The 
inquiry, and where appropriate, the determination and authori-
zation to the Export-Import Bank of the United States referred 
to in this section shall be completed and made within 60 days of 
the receipt of such information."; and 
(2) in subsection (bXD, by striking out "determining factor" 
and inserting in lieu thereof "significant factor". 
REPORT 
SEC. 632. Section 1911 of the Export-Import Bank Act Amend-
12 use 635a-2. 
ments of 1978 is amended by adding at the end thereof the following: 
"After October 1,1983, there are authorized to be appropriated such 
sums as may be necessary to carry out the provisions of this 
section.". 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1263 
TECHNICAL AMENDMENT 
SEC. 633. (a) Section 1912(b) of the Export-Import Bank Act 
Amendments of 1978 is amended by strking out "he" and inserting 
in lieu thereof "the Secretary". 
(b) Section 1912(aX2) of the Export-Import Bank Act Amendments 
of 1978 is amended by striking out "he" and inserting in heu thereof 
"the Secretary". 
PART C—TIED AID CREDIT EXPORT SUBSIDIES 
SHORT TITLE 
SEC. 641. This part may be referred to as the "Trade and Develop-
ment Enhancement Act of 1983". 
12 u s e 635a-3. 
Trade and 
Development 
Enhancement 
Act of 1983. 
12 u s e 635o 
note. 
STATEMENT OF PURPOSE 
SEC. 642. The purpose of this part is— 
(1) to expand employment and economic growth in the United 
States by expanding United States exports to the markets of the 
developing world; 
(2) to stimulate the economic development of countries in the 
developing world by improving their access to credit for the 
importation of United States products and services for develop-
mental purposes; 
(3) to neutralize the predatory financing engaged in by many 
nations whose exports compete with United States exports, and 
thereby restore export competition to a market basis; and 
(4) to encourage foreign governments to enter into effective 
and comprehensive agreements with the United States to end 
the use of tied aid credits for exports, and to limit and govern 
the use of export credit subsidies generally. 
12 use 635o. 
NEGOTIATING MANDATE 
SEC. 643. The President shall vigorously pursue negotiations to 
limit and set rules for the use of tied aid for exports. The negotiating 
objectives 
of 
the 
United 
States 
should 
include 
reaching 
agreements— 
(1) to define the various forms of tied aid credit, particularly 
mixed credits under the Arrangement on Guidelines for Offi-
cially Supported Export Credits established through the Organi-
zation for Economic Cooperation and Development (hereinafter 
in this part referred to as the "Arrangement'); 
(2) to phase out the use of government-mixed credits by a date 
certain; 
(3) to set rules governing the use of public-private cofinancing, 
or other forms of mixed financing, which may have the same 
result as government-mixed credits of drawing on concessional 
development assistance to produce subsidized export financing; 
(4) to raise the threshold for notification of the use of tied aid 
credit to a 50 per centum level of concessionality; 
(5) to improve notification procedures so that advance notifi-
cation must be given on all uses of tied aid credit; and 
(6) to prohibit the use of tied aid credit for production facili-
ties for goods which are in structural oversupply in the world. 
Presidential 
action. 
12 use 635p. 
97 STAT. 1264 
PUBLIC LAW 98-181—NOV. 30, 1983 
12 u s e 635q. 
Cooperation 
with AID. 
Program 
inclusions. 
Congressional 
financing or 
grants. 
ESTABUSHMENT OF A TIED AID CREDIT PROGRAM IN THE UNITED STATES 
EXPORT-IMPORT BANK 
SEC. 644. (aXD The Chairman of the Export-Import Bank of the 
United States shall establish, within the Export-Import Bank of the 
United States, a program of tied aid credits for United States 
exports. 
(2) The program shall be carried out in cooperation with the 
Agency for International Development and with private financial 
institutions or entities, as appropriate. 
(3) The program may include— 
(A) the combined use of the credits, loans, or guarantees 
offered by the Export-Import Bank of the United States with 
concessional financing or grants offered by the Agency for 
International Development, by methods including the blending 
of the financing of, or parallel financing by, the Bank and the 
Agency for International Development; and 
(B) the combined use of credits, loans, or guarantees offered 
by the Bank, with financing offered by private financial institu-
tions or entities, by methods including the blending of the 
financing of, or parallel financing by, the Bank and private 
institutions or entities. 
(b) The purpose of the tied aid credit program under this section is 
to offer or arrange for financing for the export of United States 
goods and services which is substantially as concessional as foreign 
financing for which there is reasonable proof that such foreign 
financing is being offered to, or arranged for, a bona fide foreign 
competitor for a United States export sale. 
(c) The Chairman of the Bank is authorized to establish a fund, as 
necessary, for canying out the tied aid credit program described in 
this section. 
(d) Concessional financing or grants offered by the Agency for 
International Development for the purposes of the mixed financing 
program established under this section shall be made available in 
accordance with the provisions of subsections (c) and (d) of section 
645 of this Act. 
12 u s e 635r. 
Program 
inclusions. 
ESTABLISHMENT OF A TIED AID CREDIT PROGRAM IN THE AGENCY FOR 
INTERNATIONAL DEVELOPMENT 
SEC. 645. (a) The Administrator of the Agency for International 
Development shall establish within the Agency a program of tied 
aid credits for United States exports. The program shall be carried 
out in cooperation with the Export-Import Bank of the United 
States and with private financial institutions or entities, as appro-
priate. The program may include— 
(1) the combined use of the credits, loans, or guarantees 
offered by the Bank with concessional financing or grants 
offered by the Agency for International Development, by meth-
ods including the blending of the financing of, or parallel 
financing by, the Bank and the Agency for International Devel-
opment; and 
(2) the combination of concessional financing or grants offered 
by the Agency for International Development with financing 
offered by private financial institutions or entities, by methods 
including the blending of the financing of, or parallel financing 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 
by, the Agency for International Development and private insti-
tutions or entities. 
(b) These funds may be combined with financing by the Export- 
Combined 
Import Bank of the United States or private commercial financing 
funding, 
in order to offer, or arrange for, financing for the exportation of 
United States goods and services which is substantially as conces-
sional as foreign financing for which there is reasonable proof that 
such foreign financing is being offered to, or arranged for, a bona 
fide foreign competitor for a United States export sale. 
(cXD Funds of the agency for International Development which 
are used to carry out a tied aid credit program authorized by 
subsections (a) and (b) shall be offered only to finance United States 
exports which can reasonably be expected to contribute to the 
advancement of the development objectives of the importing country 
or countries, and shall be consistent with the economic, security, 
and political criteria used to establish country allocations of Eco-
nomic Support Funds. 
(2) The Administrator of the Agency for International Develop-
ment is authorized to establish a fund, as necessary, for carrying out 
a tied aid credit financing program as described in this section. 
(d) The Administrator of the Agency for International Develop- 
Allocations. 
ment may draw on Economic Support Funds allocated for Commod-
ity Import Programs to finance a tied aid credit activity. 
IMPLEMENTATION 
SEC. 646. (aXD The National Advisory Council on International 
Monetary and Financial Policies shall coordinate the implementa-
tion of the tied aid credit programs authorized by sections 644 and 
645. 
(2) No financing may be approved under the tied aid credit 
programs authorized by section 644 or section 645 without the 
unanimous consent of the members of the National Advisory Coun-
cil on International Monetary and Financial Policies. 
12 use 635s. 
Ante, p. 1264. 
DEFINITIONS 
SEC. 647. For purposes of this part— 
(1) the term 'tied aid credit" means credit— 
(A) which is provided for development aid purposes; 
(B) which is tied to the purchase of exports from the 
country granting the credit; 
(C) which is financed either exclusively from public funds, 
or, as a mixed credit, partly from public and partly from 
private funds; and 
(D) which has a grant element, as defined by the Develop-
ment Assistance Committee of the Organization for Eco-
nomic Cooperation and Development, greater than zero 
percent; 
(2) the term "government-mixed credits" means the combined 
use of credits, insurance, and guarantees offered by the Export-
Import Bank of the United States with concessional financing 
or grants offered by the Agency for International Development 
to finance exports; 
(3) the term "public-private cofinancing" means the combined 
use of either official development assistance or official export 
credit with private commercial credit to finance exports; 
12 use 635t. 
97 STAT. 1266 
PUBLIC LAW 98-181—NOV. 30, 1983 
19 u s e 1671a. 
Publication in 
Federal 
Register. 
19 use 1671b. 
19 use 1671g. 
12 use 635a-3. 
19 use 1671e. 
19 use 1671b. 
(4) the term "blending of financings" means the use of various 
combinations of official development assistance, official export 
credit, and private commercial credit, integrated into a single 
package with a single set of financial terms, to finance exports; 
(5) the term "parallel financing" means the related use of 
various combinations of separate lines of official development 
assistance, official export credits, and private 
commercial 
credit, not combined into a single package with a single set of 
finsmcial terms, to finance exports; emd 
(6) the term "Bank" means the Export-Import Bank of the 
United States. 
SEC. 650. (a) Section 702 of the Tariff Act of 1930 as amended, is 
amended by adding after subsection 702(bX2) a new subsection 
702(bX3) as follows: 
"(3) PETITION BASED UPON A DEROGATION OF AN INTERNATIONAL 
UNDERTAKING ON OFFICIAL EXPORT CREDITS.—If the sole basis of a 
petition filed under subsection 702(bXl) is the derogation of an 
international undertaking on official export credits, the Administer-
ing Authority shall immediately notify the Secretary of the Treas-
ury who shall, in consultation with the Administering Authority, 
within twenty days determine the existence and estimated value of 
the derogation, if any, and shall publish such determination in the 
Federal Register.". 
(b) Section 703 of the Tariff Act of 1930, as amended, is amended 
by redesignating subsection 703(b) as subsection 703(bXl) and adding 
a new subsection 703(bX2) as follows: 
"(2) Notwithstanding subsection (bXD, when the petition is one 
subject to subsection 702(bX3), the Administering Authority shall, 
taking into account the nature of the subsidy concerned, make the 
determination required by subsection 703(bXl) on £m expedited basis 
and within 85 days after the date on which the petition is filed 
under section 702(b) unless the provisions of section 703(c) apply.". 
(c) Title VII of the Tariff Act of 1930 is amended by adding at the 
end thereof the following new section— 
"SEC. 708. Nothing in this title shall be interpreted as superseding 
the provisions of section 1912 of the Export-Import Bank Act 
Amendments of 1978, except that in the event of an assessment of 
duty based on a derogation under section 706 or action under section 
703(dX2), the Secretary of the Treasury shall not authorize the Bank 
to provide guarantees, insurance and credits to competing United 
States sellers pursuant to section 1912 of such Act.". 
TITLE VII—MISCELLANEOUS PROVISIONS 
HOME MORTGAGE DISCLOSURE ACT AMENDMENTS 
SEC. 701. (a) Sections 304, 310, and 311 of the Home Mortgage 
Disclosure Act of 1975 (12 U.S.C. 2803, 2809, and 2810) are amended 
by striking out "standard metropolitan statistical area" wherever it 
appears and inserting in lieu thereof "primary metropolitan statisti-
cal area, metropolitan statistical area, or consolidated metropolitan 
statistical area that is not comprised of designated primary metro-
politan statistical areas". 
(b) Section 308 of the Home Mortgage Disclosure Act of 1975 (12 
U.S.C. 2807) is amended by striking out "standard metropolitan 
statistical areas" wherever it appears and inserting in lieu thereof 
"primary metropolitan statistical areas, metropolitan statistical 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1267 
areas, or consolidated metropolitan statistical areas that are not 
comprised of designated primary metropolitan statistical areas", 
(c) Section 203(1) of the Depository Institutions Management In-
terlocks Act (12 U.S.C. 3202(1)) is amended by striking out "standard 
metropolitan statistical area" and inserting in lieu thereof "primary 
metropolitan statistical area, the same metropolitan statistical area, 
or the same consolidated metropolitan statistical area that is not 
comprised of designated primary metropolitan statistical areas". 
MEMBERS TO SERVE UNTIL SUCCESSORS ARE APPOINTED 
SEC. 702. (a) Section 2 of the Federal Deposit Insurance Act (12 
U.S.C. 1812) is amended by inserting after the third sentence the 
following: "Each such appointive member may continue to serve 
after the expiration of his term until a successor has been appointed 
and qualified.". 
(b) Section 17(a) of the Federal Home Loan Bank Act (12 U.S.C. 
1436(a)) is amended by adding at the end thereof the following: 
"Upon the expiration of the term of office of a member of the Board, 
such member may continue to serve until a successor has been 
appointed and qualified.". 
12 u s e 1437. 
DEFENSE PRODUCTION ACT EXTENSION 
SEC. 703. The first sentence of Section 717(a) of the Defense 
Production Act of 1950 (50 U.S.C. App. 2166(a)) is amended by 
striking out "September 30, 1983" and inserting in lieu thereof 
"March 30, 1984". 
Ante, p. 53. 
TITLE VIII—INTERNATIONAL MONETARY FUND 
PROMOTING CONDITIONS FOR EXCHANGE RATE STABILITY 
SEC. 801. The Bretton Woods Agreements Act (22 U.S.C. 286 et 
seq.) is amended by adding at the end thereof the following: 
PROMOTING CONDITIONS FOR EXCHANGE RATE STABIUTY 
"SEC. 40. (a) In order to help assure that the resources provided 
under section 41 are used to support pro-growth policies which will 
help establish the economic conditions necessary for more appropri-
ate financial and exchange rate alignment and stability, it is the 
sense of Congress that the Secretary of the Treasury shall— 
"(1) in consultation with the Secretary of State and the 
United States Trade Representative, initiate discussions with 
other countries regarding the economic dislocations which 
result from structural exchange rate imbalances; and 
"(2) instruct the United States Executive Director of the Fund 
to work for adoption of policies in the Fund, both within the 
framework of article IV (of the Articles of Agreement of the 
Fund) consultations and with respect to the conditions 
associated with Fund-supported balance of pajonents adjust-
ments programs, which promote conditions contributing to the 
stability of exchange rates and avoid the manipulation of ex-
change rates between major currencies. Among other initia-
tives, the Secretary of the Treasury shall propose strengthening 
the article IV consultation procedures of the Fund to attempt to 
Initiatives by 
Treasury 
Secretary. 
22 u s e 286y. 
Post, p. 1268. 
97 STAT. 1268 
PUBLIC LAW 98-181—NOV. 30, 1983 
Assistance 
extensions. 
22 use 286e-2. 
Supplementary 
resources. 
ensure that countries which are artificially maintaining under-
valued or overvalued rates of exchange agree to adopt market 
determined exchange rates. 
"(b) In determining his vote on extensions of assistance to any 
Fund borrower, the United States Executive Director of the Fund 
shall take into account whether such borrower's policies are consist-
ent with the requirements of article IV of the Articles of Agreement 
of the Fund.". 
QUOTA INCREASE 
SEC. 802. (a) The Bretton Woods Agreements Act (22 U.S.C. 286 et 
seq.) is amended— 
(1) in section 17(a)— 
(A) by striking out "decision of January 5, 1962," and 
inserting in lieu thereof "decisions of January 5, 1962, and 
February 24, 1983, as amended in accordance with their 
terms,"; and 
(B) by striking out "not to exceed $2,000,000,000 outstand-
ing at any one time," and inserting in lieu thereof "in an 
amount not to exceed the equivalent of 4,250,000,000 Spe-
cied Drawing Rights, limited to such amounts as are pro-
vided in advance in appropriations Acts, except that prior 
to activation, the Secretary of the Treasury shall certify 
that supplementary resources are needed to forestall or 
cope with an impairment of the international monetary 
system and that the Fund has fully explored other means of 
funding,"; 
(2) in section 17(b), by striking out "$2,000,000,000," and 
inserting in lieu thereof "4,250,000,000 Special Drawing Rights, 
except that prior to activation, the Secretary of the Treasury 
shall certify whether supplementary resources are needed to 
forestall or cope with an impairment of the international mone-
tary system and that the Fund has fully explored other means 
of funding,"; 
(3) by adding at the end of section 17 the following: 
"(d) Unless the Congress by law so authorizes, neither the Presi-
dent, the Secretary of the Treasuiy, nor any other person acting on 
behalf of the United States, may instruct the United States Execu-
tive Director to the Fund to consent to any amendment to the 
Decision of February 24, 1983, of the Executive Directors of the 
Fund, if the adoption of such amendment would significantly alter 
the amount, terms, or conditions of participation by the United 
States in the General Arrangements to Borrow."; and 
(4) by adding at the end thereof the following: 
22 use 286e-li. 
eonsultation 
with 
congressional 
committees. 
QUOTA INCREASE 
"SEC. 41. (a) The United States Governor of the Fund is authorized 
to consent to an increase in the quota of the United States in the 
Fund equivalent to 5,310,800,000 Special Drawing Rights, limited to 
such amounts as are provided in advance in appropriations Acts. 
"(bXD The Secretary of the Treasury shall consult with the chair-
man and the ranking minority member of— 
"(A) the Committee on Banking, Finance and Urban Affairs 
and the Committee on Appropriations of the House of Repre-
sentatives, and any appropriate subcommittee of each such 
committee; and 
PUBLIC LAW 98-181—NOV. 30, 1983 
"(B) the committee on Foreign Relations, the Committee on 
Appropriations, and the Committee on Banking, Housing, and 
Urban Affairs of the Senate, and any appropriate subcommittee 
of each such committee, 
for purposes of discussing the position of the executive branch and 
the views of the Congress with respect to any international negotia-
tions being held to consider any future quota increase for the 
International Monetary Fund which may involve an increased con-
tribution, subscription, or loan by the United States. 
"(2) Such consultation shall be made— 
"(A) not later than thirty days before the initiation of such 
international negotiations; 
"(B) during the period in which such negotiations are being 
held, in a frequent and timely manner; and 
"(C) before a session of such negotiations is held at which the 
United States representatives may agree to such quota increase. 
97 STAT. 1269 
COLLECTION AND EXCHANGE OF INFORMATION ON MONETARY AND 
FINANCIAL PROBLEMS 
"SEC. 42. (a) It is the sense of the Congress that— 
22 USC 286z. 
"(1) the lack of sufficient information currently available to 
allow members of the Fund to make sound and prudent deci-
sions concerning their public and private sector international 
borrowing, and to allow lenders to make sound and prudent 
decisions concerning their international lending, threatens the 
stability of the international monetary system; and 
"(2) in recognition of the Fund's duties, as provided particu-
larly by article VIII of the Articles of Agreement of the Fund, to 
act as a center for the collection and exchange of information on 
monetary and financial problems, the Fund should adopt neces-
sary and appropriate measures to ensure that more complete 
and timely financial information will be available. 
"(b) To this end, the Secretary of the Treasury shall instruct the 
United States Executive Director of the Fund to initiate discussions 
with other directors of the Fund and with Fund management, and to 
propose and vote for, the adoption of procedures, within the Fund— 
"(1) to collect and disseminate information, on a quarterly 
basis, from and to Fund members, and to such other persons as 
the Fund deems appropriate, concerning— 
"(A) the extension of credit by banks or nonbanks to 
private and public entities, including all government enti-
ties, instrumentalities, and central banks of member coun-
tries; and 
"(B) the receipt of such credit by those private and public 
entities of member countries, where such banks or non-
banks are not principally established within the borders of 
the member country to which the credits are extended; and 
"(2) to disseminate publicly information which is developed in 
the course of the Fund's collection, and to review and comment 
on efforts which the Fund determines would serve to enhance 
the informational base upon which international borrowing and 
lending decisions are taken. 
"(c) For purposes of this section, the term 'credit' includes— 
"Credit." 
"(1) outstanding loans to private and public entities, including 
government entities, instrumentalities, and central banks of 
any member, and 
97 STAT. 1270 
PUBLIC LAW 98-181—NOV. 30, 1983 
Presidential 
authority. 
22 use 286f. 
"(2) unused lines of credit which have been made available to 
those private and public entities of any member, 
where such loans or lines of credit are repayable in freely convert-
ible currency. 
"(d) The President is authorized to use the authority provided 
under section 8 of this Act to require any person (as defined in such 
section) subject to the jurisdiction of the United States to provide 
such information as the Fund determines to be necessary in order to 
carry out the provisions of this section.". 
Consultations 
with Treasury 
Secretary and 
congressional 
committees. 
SPECIAL DRAWING RIGHTS 
SEC. 803. Section 6 of the Special Drawing Rights Act (22 U.S.C. 
286q) is amended— 
(1) by inserting "(a)" after "SEC. 6."; and 
(2) by adding at the end thereof the following: 
"(bXD Neither the President nor any person or agency shall on 
behalf of the United States vote to allocate Special Drawing Rights 
under article XVIII, sections 2 and 3, of the Articles of Agreement of 
the Fund without consultations by the Secretary of the Treasury at 
least 90 days prior to any such vote, with the Chairman §ind ranking 
minority members of the Committee on Foreign Relations and the 
Committee on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Banking, Finance and Urban Affairs of the 
House of Representatives, and the appropriate subcommittees there-
of. 
"(2) Such consultations shall include an explanation of the consist-
ency of such proposal to allocate with the requirements of the 
Articles of Agreement of the Fund, in particular the requirement 
that in all its decisions with respect to allocation of Special Drawing 
Rights, the Fund shall 'seek to meet the long-term global need, as 
and when it arises, to supplement existing reserve assets in such 
manner as will promote the attainment of its purposes and will 
avoid economic stagnation and deflation as well as excess demand 
and inflation in the world'.". 
INSTRUCTIONS TO THE UNITED STATES EXECUTIVE DIRECTOR 
SEC. 804. The Bretton Woods Agreements Act (22 U.S.C. 286 et 
seq.) is amended by adding at the end thereof the following: 
22 u s e 286aa. 
Appearance 
before 
congressional 
committees. 
INSTRUCTIONS TO THE UNITED STATES EXECUTIVE DIRECTOR 
"SEC. 43. (a) The Congress hereby finds that Communist dictator-
ships result in severe constraints on labor and capital mobility and 
other highly inefficient labor and capital supply rigidities which 
contribute to balance of payments deficits in direct contradiction of 
the goals of the International Monetary Fund. Therefore, the Secre-
tary of the Treasury shall instruct the United States Executive 
Director of the Fund to actively oppose any facility involving use of 
Fund credit by any Communist dictatorship, unless the Secretary of 
the Treasury certifies and documents in writing upon request and so 
notifies and appears, if requested, before the Foreign Relations and 
Banking, Housing, and Urban Affairs Committees of the Senate and 
the Banking, Finance and Urban Affairs Committee of the House of 
Representatives, at least twenty-one days in advance of any vote on 
such drawing that such drawing— 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1271 
(1) provides the basis for correcting the balance of payments 
difficulties and restoring a sustainable balance of pa)Tnents 
position; 
(2) would reduce the severe constraints on labor and capital 
mobility or other highly inefficient labor and capital supply 
rigidities and advances market-oriented forces in that country; 
and 
(3) is in the best economic interest of the majority of the 
people in that country. 
Should the Secretary not meet a request to appear before the 
aforementioned committees at least twenty-one days in advance of 
any vote on any facility involving use of Fund credit by any commu-
nist dictatorship and certify and docvunent in writing that these 
three conditions have been met, the United States Executive Direc-
tor shall vote against such program. 
"(b) The Congress hereby finds that the practice of apartheid 
results in severe constraints on labor and capital mobility and other 
highly inefficient labor and capital supply rigidities which contrib-
ute to balance of pa)mients deficits in direct contradiction of the 
goals of the International Monetary Fund. Therefore, the President 
shall instruct the United States Executive Director of the Fund to 
actively oppose any facility involving use of Fund credit by any 
country which practices apartheid unless the Secretary of the Treas-
ury certifies and documents in writing, upon request, and so notifies 
and appears, if requested, before the Foreign Relations and Banking, 
Housing, and Urban Affairs Committees of the Senate and the 
Banking, Finance and Urban Affairs Committee of the House of 
Representatives, at least twenty-one days in advance of any vote on 
such drawing, that such drawing: (1) would reduce the severe con-
straints on labor and capital mobility, through such means as 
increasing access to education by workers and reducing artificial 
constraints on worker mobility and substantial reduction of racially-
based restrictions on the geographical mobility of labor; (2) would 
reduce other highly inefficient labor and capital supply rigidities; (3) 
would benefit economically the majority of the people of any coun-
try which practices apartheid; (4) is suffering from a genuine bal-
ance of payments imbalance that cannot be met by recourse to 
private capital markets. Should the Secretary not meet a request to 
appear before the aforementioned committees at least twenty-one 
days in advance of any vote on any facility involving use of Fund 
credit by any country practicing apartheid and certify and docu-
ment in writing that these four conditions have been met, the 
United States Executive Director shall vote against such program.". 
Countries prac-
ticing apartheid, 
restricted fund-
ing. 
Notification of 
congressional 
committees. 
ELIMINATION OF AGRICULTURAL EXPORT SUBSIDIES 
SEC. 805. The Bretton Woods Agreements Act (22 U.S.C. 286 et 
seq.) is amended by adding at the end thereof the following: 
ELIMINATION OF AGRICULTURAL EXPORT SUBSIDIES 
"SEC. 44. The Secretary of the Treasury shall instruct the United 
States Executive Director of the Fund to propose and work for the 
adoption of a policy encouraging Fund members to eliminate all 
predatory agricultural export subsidies which might result in the 
reduction of other member countries' exports.". 
22 use 286bb. 
97 STAT. 1272 
PUBLIC LAW 98-181—NOV. 30, 1983 
SUSTAINING ECONOMIC GROWTH 
SEC. 806. The Bretton Woods Agreements Act (22 U.S.C. 286 et 
seq.) is amended by adding at the end thereof the following: 
Presidential 
instructions. 
22 u s e 286cc. 
Economic 
adjustment 
programs. 
Written 
documenta-
tion to 
congressional 
committees. 
SUSTAINING ECONOMIC GROWTH 
"SEC. 45. (aXD The President shall instruct the Secretary of the 
Treasury, the Secretary of State, and other appropriate Federal 
officials, and shall request the Chairman of the Board of Governors 
of the Federal Reserve System, to use all appropriate means to 
encourage countries to formulate economic adjustment programs to 
deal with their balance of payment difficulties and external debt 
owed to private banks. 
"(2) Such economic adjustment programs should be designed to 
safeguard, to the maximum extent feeisible, international economic 
growth, world tr.ade, employment, and the long-term solvency of 
banks, and to minimize the likelihood of civil disturbances in coun-
tries needing economic adjustment programs. 
"(b) To ensure the effectiveness of economic adjustment programs 
supported by Fund resources— 
"(1) the United States Executive Director of the Fund shall 
recommend and shall work for changes in Fund guidelines, 
policies, and decisions which would— 
"(A) convert short-term bank debt which was made at 
high interest rates into long-term debt at lower rates of 
interest; 
"(B) assure that the annual external debt service, which 
shall include principal, interest, points, fees, and other 
charges required of the country involved, is a manageable 
and prudent percentage of the projected annual export 
earnings of such country; and 
"(C) provide that in approving any economic adjustment 
program the Fund shall take into account the number of 
countries applying to the Fund for economic adjustment 
programs and the aggregate effects that such programs will 
have on international economic growth, world trade, 
exports and emplo3rment of other member countries, and 
the long-term solvency of banks; and 
"(2) except as provided in subsection (c) of this section, the 
United States Executive Director of the Fund shall oppose and 
vote against providing assistance from the Fund for any eco-
nomic adjustment program for a country in which the annual 
external debt service exceeds 85 per centum of the annual 
export earnings of such country, unless the Secretary of the 
Treasury first determines and provides written documentation 
to the Committee on Banking, Housing, and Urban Affairs and 
the Committee on Foreign Relations of the Senate and the 
Committee on Banking, Finance and Urban Affairs of the 
House of Representatives that— 
"(A) the economic adjustment program converts high 
interest rate, short-term bank debt into long-term debt at 
significantly narrower interest rate spreads than the aver-
age interest rate spreads prevailing on bank debt reschedul-
ings negotiated between August 1982 and August 1983 for 
countries receiving assistance from the Fund for economic 
adjustment programs in order to minimize the burdens of 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1273 
adjustment on the debtor nation, provided that such inter-
est rate spreads are consistent with that nation's need to 
obtain adequate external private financing; 
"(B) the annual external debt service required of the 
country involved is a manageable and prudent percentage 
of the projected annual export earnings of such country; 
and 
"(C) the economic adjustment program will not have an 
adverse impact on international economic growth, world 
trade, exports, and employment of other member countries, 
and the long-term solvency of banks. 
"(c) The provisions of subsection (bX2) shall not apply in any case 
in which the Secretary of the Treasury first determines and provides 
written documentation to the Committee on Banking, Housing, and 
Urban Affairs and the Committee on Foreign Relations of the 
Senate and the Committee on Banking, Finance and Urban Affairs 
of the House of Representatives that— 
"(1) an emergency exists in a nation that has applied to the 
Fund for assistance that requires an immediate short-term loan 
to avoid disrupting orderly flnancial markets; 
"(2) a sudden decrease in export earnings in the country 
applying to the Fund for assistance has increased the ratio of 
annual external debt service to annual export earnings, to 
greater than 85 per centum for a period projected to be no more 
than one year; or 
"(3) other extraordinary circumstances exist which warrant 
waiving the provisions of subsection (bX2).". 
Warranted 
assistance 
in certain 
circumstances. 
OPPOSING FUND BAILOUTS OF BANKS 
SEC. 807. The Bretton Woods Agreements Act (22 U.S.C. 286 et 
seq.) is amended by adding at the end thereof the following: 
OPPOSING FUND BAILOUTS OF BANKS 
"SEC. 46. The Secretary of the Treasury shall instruct the United 
States Executive Director of the Fund— 
"(1) to oppose and vote against any Fund drawing by a 
member country where, in his judgment, the Fund resources 
would be drawn principally for the purpose of repaying loans 
which have been imprudently made by banking institutions to 
the member country; and 
"(2) to work to insure that the Fund encourages borrowing 
countries and banking institutions to negotiate, where appropri-
ate, a rescheduling of debt which is consistent with safe and 
sound banking practices and the country's ability to pay.". 
22 u s e 286dd. 
SURPLUS COMMODITIES 
SEC. 808. (a) Section 4(b) of the Bretton Woods Agreements Act (22 
U.S.C. 286b(b)) is amended by adding at the end thereof the 
following: 
"(8) The general policy objectives for the guidance of the United 
States Executive Director of the Bank shall take into account the 
effect that development assistance loans have upon individual 
industnr sectors and international commodity markete— 
(A) to minimize projected adverse impacts; and 
97 STAT. 1274 
PUBLIC LAW 98-181—NOV. 30, 1983 
"(B) to avoid, wherever possible, government subsidization of 
production and exports of international commodities without 
regard to economic conditions in the markets for such 
commodities.". 
INTERNATIONAL COOPERATION 
SEC. 809. The Bretton Woods Agreements Act (22 U.S.C. 286 et 
seq.) is amended by adding at the end thereof the following: 
Lending policies, 
adoption. 
22 u s e 286ee. 
INTERNATIONAL COOPERATION 
"SEC. 47. The Secretary of the Treasury shall instruct the United 
States Executive Director of the Fund to propose that the Fund 
adopt the following policies with respect to international lending: 
"(1) In its consultations with a member government on its 
economic policies pursuant to article IV of the Articles of 
Agreement of the Fund, the Fund should— 
"(A) intensify its examination of the trend and volume of 
external indebtedness of private and public borrowers in 
the member country and comment, as appropriate, in its 
report to the Executive Board from the viewpoint of the 
contribution of such borrowings to the economic stability of 
the borrower; and 
"(B) consider to what extent and in what form these 
comments might be made available to the international 
banking community and the public. 
"(2) As part of any Fund-approved stabilization program, the 
Fund should give consideration to placing limits on public 
sector external short- and long-term borrowing. 
"(3) As a part of its annual report, and at such times as it may 
consider desirable, the Fund should publish its evaluation of the 
trend and volume of international lending as it affects the 
economic situation of lenders, borrowers, and the smooth func-
tioning of the international monetary system.". 
IMP INTEREST RATES 
SEC. 810. The Bretton Woods Agreements Act (22 U.S.C. 286 et 
seq.) is amended by adding at the end thereof the following: 
IMP INTEREST RATES 
22 use 286ff. 
"SEC. 48. The Secretary of the Treasury shall instruct the United 
States Executive Director of the Fund to propose and work for the 
adoption of Fund policies regarding the rate of remuneration paid 
on use of member s quota subscriptions and the rate of charges on 
Fund drawings to bring those rates in line with market rates.". 
Notice 
transmittal 
to congressional 
committees. 
BORROWING IN UNITED STATES CREDIT MARKETS 
SEC. 811. Section 5 of the Bretton Woods Agreements Act (22 
U.S.C. 286c) is amended by adding at the end thereof the following: 
"Neither the President nor any person or agency shall, on behalf of 
the United States, consent to any borrowing (other than borrowing 
from a foreign government or other official public source) by the 
Fund of funds denominated in United States dollars, unless the 
Secretary of the Treasury transmits a notice of such proposed 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1275 
borrowing to both Houses of the Congress at least 60 days prior to 
the date on which such borrowing is scheduled to occur.". 
TRADE PROVISIONS 
SEC. 812. The Bretton Woods Agreements Act (22 U.S.C. 286 et 
seq.) is amended by adding at the end thereof the following: 
TRADE PROVISIONS 
"SEC. 49. (aXl) The Secretary of the Treasury shall instruct the 
United States Executive Director of the Fund to initiate a wide 
consultation with the Managing Director of the Fund and the other 
directors of the Fund with r^ard to the development of Fund 
financial assistance policies which, to the maximum feasible 
extent— 
"(A) reduce obstacles to and restrictions upon international 
trade and investment in goods and services; 
"(B) eliminate unfair trade and investment practices; and 
"(CD promote mutually advantageous economic relations. 
"(2) The Secretary of the Treasury shall work closely in this effort 
with the Trade Policy Committee. 
"(3) As part of this effort, the Secretary of the Treasury shall also 
instruct the United States Executive Director of the Fund to encour-
age close cooperation between Fund staff and the GATT Secretariat. 
"(bXD The Secretary of the Treasury shall instruct the United 
States Executive Director of the Fimd, prior to the extension to any 
country of financial assistance by the Fund, to work to have the 
Fund obtain the agreement of such country to eliminate, in a 
maimer consistent with its balance of payments adjustment pro-
gram, unfair trade and investment practices with respect to goods 
and services which the United States Trade Representative, after 
consultation with the Trade Policy Committee, has determined to 
have a significant deleterious effect on the international trading 
i^ystem. 
"(2) Such practices include— 
"(A) the provision of predatory export subsidies, employed in 
connection with the exporting of agricultural commodities and 
products thereof to foreign countries; 
"(B) the provision of other export subsidies, such as govern-
ment subsidized below-market interest rate financing for com-
modities or manufactured goods; 
"(C) unreasonable import restrictions; 
"(D) the imposition of trade-relat^ performance require-
ments on foreign investment; and 
"(E) practices which are inconsistent with international 
agreements. 
"(cXD In determining the United States position on requests for 
periodic drawing under Fund prc^ams, the Secretary of the Treas-
ury shall take full account of the progress countries have made in 
achieving targets for eliminating or phasing out the practices 
referred to in subsection (b) of this section. 
"(2) In the event that the United States supports a request for 
drawing by a country that has not achieved the Fund targets 
relating to such practices specified in its program, the Secretary of 
the Treasury shall report to the appropriate committees of the 
Congress the reasons for the United States position.". 
Fund, 
financial 
assistance 
policies. 
22 u s e 286gg: 
Agreements 
with 
Fund-assisted 
countries. 
Unfair trade 
and investment 
practices. 
Requests for 
periodic 
drawing. 
Report to 
congressional 
committees. 
97 STAT. 1276 
PUBLIC LAW 98-181—NOV. 30, 1983 
REPORTS TO CONGRESS 
SEC. 813. The Bretton Woods Agreements Act (22 U.S.C. 286 et 
seq.) is amended by adding at the end thereof the following: 
"REPORTS TO CONGRESS 
22USC286b-2. 
"SEC. 50. (a) The National Advisory C!ouncil on International 
Monetary and Financial Policies shall include in its annual reports 
to the Congress— 
Statement 
"(1) a statement listing all appraisal reports which have been 
^^^^^S 
circulated during the preceding year within the Bank for 
appraisa s. 
project assistance which would establish or enhance the capac-
ity of any country to produce a commodity for export, i
f
-
— 
"(A) such commodity is in surplus on world markets or is 
likely to be in surplus on world markets at the time the 
resulting productive capacity is expected to become opera-
tive; and 
"(B) such project assistance will cause material injury to 
United States producers of the same, similar, or competing 
commodity; 
Review. 
"(2) a review of success in reducing or eliminating import 
restrictions and unfair export subsidies which have been deter-
mined to be inconsistent with international agreements, and 
which have a serious adverse impact on the United States, or 
any other member's, exports or employment; 
Study. 
*(3) a study for the fiscal year 1984 report of the impact on the 
United States steel and copper industries of steel and copper 
subsidies by nations who are borrowers from the Fund; 
Review. 
"(4) a review for the fiscal year 1984 report regarding progress 
achieved in reaching the goal of eliminating all predatory agri-
cultural export subsidies which might result in the reduction of 
Ante, p. 1271. 
other member countries' exports as set forth in section 44; and 
"(5) copies of the analyses and any written documentation 
prepared by the Secretary of the Treasury pursuant to subsec-
Ante, p. 1272. 
tions (bX2) and (c) of section 45 and a statement detailing the 
actions and progress made in carrying out the requirements of 
subsections (a) and (b) of section 45. 
"(b) Not later than one year after the date of the enactment of this 
section, the Secretary of the Treasury shall transmit a report to the 
Congress on the operation of the international monetary and finan-
cial system, including— 
"(1) findings of the Secretary of the Treasury, the Chairman 
of the Board of Governors of the Federal Reserve, and the 
Secretary of State regarding consideration of United States 
membership in the Bank for International Settlements; and 
"(2) proposals to improve the floating exchange rate system. 
"(c) Not later than one year after the date of the enactment of this 
section, the Secretary of the Treasury shall transmit a report to the 
Congress with respect to strengthening the role and improving the 
operation of the International Monetary Fund, including— 
"(1) ways to maintain realistic, market-determined exchange 
rates with other major currencies and recommendations regard-
ing what can be done to avoid exchange rate manipulation. In 
particular, such report shall examine the policies of major 
trading partners which (A) maintain a substantial trade surplus 
with the United States, and (B) encourage export of capital to 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1277 
such an extent that exchange rates do not appear to reflect 
adiustments based on trade patterns alone; 
(2) a review and analysis o
f
— 
"(A) the ability of the Fund to promote real economic 
growth and sustained, noninflationaiy recovery, pursuant 
to its mandate in article I of the Articles of Agreement of 
the Fund, in countries which enter into stabilization pro 
grams with the Fund; 
"(B) the feasibility of the Fund issuing securities in the 
private capital markets as a means of increasing its 
resources, either in lieu of, or in addition to, future quota 
increases, together with an evaluation of how such borrow-
ing would affect the credit markets of the United States; 
(C) the feasibility of returning all or part of the Fund's 
gold reserves to Fund members or of selling the Fund's gold 
reserves in the private markets in an effort to raise capital; 
"(D) the feasibility of establishing temporary, supplemen-
tal financing facilities at the Fund; 
"(E) the feasibility of establishing a Gold Lending Facility 
whereby the Fund would lend gold to Fund members who 
would in turn use such gold as collateral for commercial 
loans; 
"(F) recommendations for amendments to the Articles of 
Agreement of the Fund, if any, to improve the role of the 
Fund in the international monetary system; and 
"(G) the effect on (i) the market price of gold, (ii) countries 
whose central banks maintain reserves in the form of gold 
and (iii) credit markets of the United States as a result of 
taking any of the actions described in subparagraphs (C), 
(D), or (E) of this paragraph; 
"(3) actions which have been taken to carry out the provisions 
of section 33 of this Act; 
"(4) progress made in implementing section 48 of this Act; 
"(5) a study on the past and potentied impact of Fund loan 
quota extension on world oil prices, such study to be done in 
cooperation with the Secretary of State and the Secretary of 
Energy; 
"(6) an assessment— 
"(A) of whether under present circumstances a system-
atic restructuring and stretching out of developing country 
debt should be conducted; 
"(B) regarding the role global recovery will play in solv-
ing the debt crisis and what interim financing measures 
may have to be taken for those countries which have no 
possibility of continuing to service their debts even in the 
event of a vigorous economic recovery; 
"(C) of whether the Fund, which is increasingly being 
used as a source of credit to finance balance of payments 
deficits, has adeqate resources to cover all conceivable 
requests for credit extensions taking into account the quota 
increase consented to under section 41 of this Act; 
"(D) regarding what role the United States Government 
sees for the Fund in providing finance and credit to the 
least developed countries who have such a limited capacity 
to borrow to finance pajrments deficits; and 
"(E) pursuant to the agreement at the Williamsburg 
Summit, outlining what progress has been made in the 
Review and 
analysis. 
22 u s e 286s. 
Ante, p. 1274. 
Study. 
Ante, p. 1268. 
97 STAT. 1278 
PUBLIC LAW 98-181—NOV. 30, 1983 
consultations among finance ministers and the managing 
director of the Fund on the conditions for improving the 
international monetary system; and 
"(7) establishing collection, review, comment, and reporting 
procedures within the Fund as provided in section 42 of this 
Ante, p. 1269. 
Act.". 
International 
TITLE IX—INTERNATIONAL LENDING SUPERVISION 
Lending Super-
vision Act of 
1983. 
SHORT TITLE 
12 use 3901 
SEC. 901. This title may be cited as the "International Lending 
note. 
Supervision Act of 1983". 
DECLARATION OP POUCY 
12 use 3901. 
SEC. 902. (aXD It is the policy of the Congress to assure that the 
economic health and stability of the United States and the other 
nations of the world shall not be adversely affected or threatened in 
the 
future 
by 
imprudent 
lending 
practices 
or 
inadequate 
supervision. 
(2) This shall be achieved by strengthening the bank regulatory 
framework to encourage prudent private decisionmaking and by 
enhancing 
international 
coordination 
among bank 
regulatory 
authorities. 
(b) The Federal banking agencies shall consult with the banking 
supervisory authorities of other countries to reach understandings 
aimed at achieving the adoption of effective and consistent supervi-
sory policies and practices with respect to international lending. 
DEFINITIONS 
12 use 3902. 
SEC. 903. For purposes of this t i t l e -
CD the term "appropriate Federal banking agency" has the 
same meaning given such term in section 3(q) of the Federal 
12 use 1813. 
Deposit Insurance Act, except that for purposes of this title such 
term means the Board of Governors of the Federal Reserve 
System for— 
(A) bank holding companies and any nonbank subsidiary 
thereof; 
(B) Edge Act corporations organized under section 25(a) of 
12 use 611-631. 
the Federal Reserve Act; and 
(C) Agreement Corporations operating under section 25 of 
12 use 
the Federal Reserve Act; and 
601-604a. 
(2) the term "banking institution" means— 
(AXi) an insured bank £is defined in section 3(h) of the 
12 u s e 1813. 
Federal Deposit Insurance Act or any subsidiary of an 
insured bank; 
(ii) an Edge Act corporation organized under section 25(a) 
of the Federal Reserve Act; and 
(iii) an Agreement Corporation operating under section 
25 of the Federal Reserve Act; and 
(B) to the extent determined by the appropriate Federal 
banking agency, any agency or branch of a foreign bank, 
and any commercial lending company owned or controlled 
by one or more foreign banks or companies that control a 
foreign bank as those terms are deHned in the Interna-
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1279 
tional Banking Act of 1978. The term "banking institution' 
shall not include a foreign bank. 
12 u s e 3101 
note. 
STRENGTHENED SUPERVISION OF INTERNATIONAL LENDING 
SEC. 904. (a) Each appropriate Federal banking agency shall evalu-
ate banking institution foreign country exposure and transfer risk 
for use in banking institution examination and supervision. 
(b) Each such agency shall establish examination and supervisory 
procedures to assure that factors such as foreign country exposure 
and transfer risk are taken into account in evaluating the adequacy 
of the capital of banking institutions. 
12 u s e 3903. 
RESERVES 
SEC. 905. (aXD Each appropriate Federal banking agency shall 
12 USC 3904. 
require a banking institution to establish and maintain a special 
reserve whenever, in the judgment of such appropriate Federal 
banking agency— 
(A) the quality of such banking institution's assets has been 
impaired by a protracted inability of public or private borrowers 
in a foreign country to make pajonents on their external indebt-
edness as indicated by such factors, among others, as— 
(i) a failure by such public or private borrowers to make 
full interest pa)Tnents on external indebtedness; 
(ii) a failure to comply with the terms of any restructured 
indebtedness; or 
(iii) a failure by the foreign country to comply with any 
International Monetary Fund or other suitable adjustment 
program; or 
(B) no definite prospects exist for the orderly restoration of 
debt service. 
(2) Such reserves shall be charged against current income and 
shall not be considered as part of capital and surplus or allowances 
for possible loan losses for regulatory, supervisory, or disclosure 
purposes. 
(b) The appropriate Federal banking agencies shall analyze the 
results of foreign loan rescheduling negotiations, assess the loan loss 
risk reflected in rescheduling agreements, and, using the powers set 
forth in section 908 (regarding capital adequacy), ensure that the 
Post, p. 1280. 
capital and reserve positions of United States banks are adequate to 
accommodate potential losses on their foreign loans. 
(c) The appropriate Federal banking agencies shall promulgate 
Regulations. 
regulations or orders necessary to implement this section within one 
hundred and twenty days after the date of the enactment of this 
title. 
ACCOUNTING FOR FEES ON INTERNATIONAL LOANS 
SEC. 906. (aXD In order to avoid excessive debt service burdens on 
12 USC 3905. 
debtor countries, no banking institution shall charge, in connection 
with the restructuring of an international loan, any fee exceeding 
the administrative cost of the restructuring unless it amortizes such 
fee over the effective life of each such loan. 
(2XA) Each appropriate Federal banking agency shall promulgate 
such regulations as are necessary to further carry out the provisions 
of this subsection. 
97 STAT. 1280 
PUBLIC LAW 98-181—NOV. 30, 1983 
(B) The requirement of paragraph (1) shall take effect on the date 
of the enactment of this section. 
Regulations. 
(bXD Subject to subsection (a), the appropriate Federal banking 
agencies shall promulgate regulations for accounting for agency, 
commitment, management and other fees charged by a banking 
institution in connection with an international loan. 
(2) Such regulations shall establish the accounting treatment of 
such fees for regulatory, supervisory, and disclosure purposes to 
assure that the appropriate portion of such fees is accrued in income 
over the effective life of each such loan. 
(3) The appropriate Federal banking agencies shall promulgate 
regulations or orders necessary to implement this subsection within 
one hundred and twenty days after the date of the enactment of this 
title. 
COLLECTION AND DISCLOSURE OF CERTAIN INTERNATIONAL LENDING 
DATA 
12 use 3906. 
SEC 907. (a) Each appropriate Federal banking agency shall 
require, by regulation, each banking institution with foreign coun-
try exposure to submit, no fewer than four times each calendar year, 
information regarding such exposure in a format prescribed by such 
regulations. 
(b) Each appropriate Federal banking Eigency shall require, by 
regulation, banking institutions to disclose to the public information 
regarding material foreign country exposure in relation to assets 
and to capital. 
Regulations. 
(c) The appropriate Federal banking agencies shall promulgate 
regulations or orders necessary to implement this section within one 
hundred and twenty days after the date of the enactment of this 
title. 
12 use 3907. 
Failure to main-
tain minimum 
level. 
12 use 1818. 
Directive. 
CAPITAL ADEQUACY 
SEC. 908. (aXl) Each appropriate Federal banking agency shall 
cause banking institutions to achieve and maintain adequate capital 
by establishing minimum levels of capital for such banking institu-
tions and by using such other methods as the appropriate Federal 
bsmking agency deems appropriate. 
(2) Each appropriate Federal banking agency shall have the au-
thority to establish such minimum level of capital for a banking 
institution as the appropriate Federal banking agency, in its discre-
tion, deems to be necessary or appropriate in light of the particular 
circumstances of the banking institution. 
(bXD Failure of a banking institution to maintain capital at or 
above its minimum level as established pursuant to subsection (a) 
may be deemed by the appropriate Federal banking agency, in its 
discretion, to constitute an unsafe £md unsound practice within the 
meaning of section 8 of the Federal Deposit Insurance Act. 
(2XA) In addition to, or in lieu of, any other action authorized by 
law, including paragraph (1), the appropriate Federal beinking 
agency may issue a directive to a banking institution that fails to 
maintain captial at or above its required level as established pursu-
ant to subsection (a). 
(BXi) Such directive may require the banking institution to submit 
and adhere to a plan acceptable to the appropriate Federal banking 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1281 
agency describing the means and timing by which the banking 
institution shall achieve its required capital level. 
(ii) Any such directive issued pursuant to this paragraph, includ-
ing plans submitted pursuant thereto, shall be enforceable under 
the provisions of section 8(i) of the Federal Deposit Insurance Act to 
the same extent as an effective and outstanding order issued pursu-
ant to section 8(b) of the Federal Deposit Insurance Act which has 
become final. 
(3XA) Each appropriate Federal banking agency may consider 
such banking institution's progress in adhering to any plan required 
under this subsection whenever such banking institution, or an 
affiliate thereof, or the holding company which controls such bank-
ing institution, seeks the requisite approval of such appropriate 
Federal banking agency for any proposal which would divert earn-
ings, diminish capital, or otherwise impede such banking institu-
tion's progress in achieving its minimum capital level. 
(B) Such appropriate Federal banking agency may deny such 
approval where it determines that such proposal would adversely 
affect the ability of the banking institution to comply with sucn 
plan. 
(C) The Chairman of the Board of Governors of the Federal 
Reserve System and the Secretary of the Treasury shall encourage 
governments, central banks, and regulatory authorities of other 
major banking countries to work toward maintaining and, where 
appropriate, strengthening the capital bases of banking institutions 
involved in international lending. 
12 use 1818. 
FOREIGN LOAN EVALUATIONS 
SEC. 909. (aXD In any case in which one or more banking institu- 
12 USC 3908. 
tions extend credit, whether by loan, lease, guarantee, or otherwise, 
which individually or in the aggregate exceeds $20,000,000, to 
finance any project which has as a major objective the construction 
or operation of any mining operation, any metal or mineral primary 
processing operation, any fabricating facility or operation, or any 
metal-making operations (semi and finished) located outside the 
United States or its territories and possessions, a written economic 
feasibility evsduation of such foreign project shall be prepared and 
approved in writing by a senior official of the banking institution, 
or, if more than one banking institution is involved, the lead bank-
ing institution, prior to the extension of such credit. 
(2) Such evaluation shall— 
(A) take into account the profit potential of the project, the 
impact of the project on world markets, the inherent competi-
tive advantages and disadvantages of the project over the entire 
life of the project, and the likely effect of the project upon the 
overall long-term economic development of the country in 
which the project is located; and 
(B) consider whether the extension of credit can reasonably be 
expected to be repaid from revenues generated by such foreign 
project without regard to any subsidy, as defined in inter-
national agreements, provided by the government involved or 
any instrumentality of any country. 
(b) Such economic feasibility evaluations shall be reviewed by 
Review. 
representatives of the appropriate Federal banking agencies when-
ever an examination by such appropriate Federal banking agency is 
conducted. 
1 1 - 1 9 4 
0 - 8 5 
42 
QL 3 
97 STAT. 1282 
PUBLIC LAW 98-181—NOV. 30, 1983 
Regulations or 
orders. 
12 use 3909. 
(cXD The authorities of the Federal banking agencies contained in 
12 use 1818. 
section 8 of the Federal Deposit Insurance Act and in section 910 of 
this Act, except those contained in section 910(d), shall be applicable 
to this section. 
(2) No private right of action or claim for relief may be predicated 
upon this section. 
GENERAL AUTHORITIES 
SEC. 910. (aXD The appropriate Federal banking agencies are 
authorized to interpret and define the terms used in this title, and 
each appropriate Federal banking agency shall prescribe rules or 
regulations or issue orders as necessary to effectuate the purposes of 
this title and to prevent evasions thereof. 
(2) The appropriate Federal banking agency is authorized to apply 
the provisions of this title to any affiliate of an insured bank, but 
only to affiliates for which it is the appropriate Federal banking 
agency, in order to promote uniform application of this title or to 
prevent evasions thereof. 
(3) For purposes of this section, the term "affiliate" shall have the 
same meaning as in section 23A of the Federal Reserve Act, except 
that the term "member bank" in such section shall be deemed to 
refer to an "insured bank", as such term is used in section 3(h) of the 
Federal Deposit Insurance Act. 
(b) The appropriate Federal banking agencies shall establish uni-
form systems to implement the authorities provided under this title. 
(cXD The powers and authorities granted in this title shall be 
supplemental to and shall not be deemed in any manner to derogate 
from or restrict the authority of each appropriate Federal banking 
agency under section 8 of the Federal Deposit Insurance Act or any 
other law including the authority to require additional capital or 
reserves. 
(2) Any such authority may be used by any appropriate Federal 
banking agency to ensure compliance by a banking institution with 
the provisions of this title and all rules, regulations, or orders issued 
pursuant thereto. 
(dXD Any banking institution which violates, or any officer, direc-
tor, employee, agent, or other person participating in the conduct of 
the affairs of such banking institution, who violates any provision of 
this title, or any rule, regulation, or order, issued under this title, 
shall forfeit and pay a civil penalty of not more than $1,000 per day 
for each day during which such violation continues. 
(2) Such violations shall be deemed to be a violation of a final 
12 use 1818. 
order under section 8(iX2) of the Federal Deposit Insurance Act and 
the penalty shall be assessed and collected by the appropriate 
Federal banking agency under the procedures established by, and 
subject to the rights afforded to parties in, such section. 
12 u s e 371c. 
12 use 1813. 
Supplemental 
powers or 
authorities. 
12 use 1818. 
Violations. 
GAO AUDIT AUTHORITY 
12 use 3910. 
SEC. 911. (aXD Under regulations of the Comptroller General, the 
Comptroller General shall audit the appropriate Federal banking 
Ante, p. 1278. 
agencies (as defined in section 903 of this title), but may carry out an 
onsite examination of an open insured bank or bank holding 
company only if the appropriate Federal banking agency has con-
sented in writing. 
Audit inclusions. 
(2) An audit under this subsection may include a review or 
evaluation of the international regulation, supervision, and exami-
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1283 
nation activities of the appropriate Federal banking agency, includ-
ing the coordination of such activities with similar activities of 
regulatory authorities of a foreign government or international 
organization. 
(3) Audits of the Federal Reserve Board and Federal Reserve 
banks may not include— 
(A) transactions for, or with, a foreign central bank, govern-
ment of a foreign country, or nonprivate international financing 
organization; 
(B) deliberations, decisions, or actions on monetary policy 
matters, including discount window operations, reserves of 
member banks, securities credit, interest on deposits, or open 
market operations; 
(C) transactions made under the direction of the Federal Open 
Market Committee; or 
(D) a part of a discussion or communication among or between 
members of the Board of Governors of the Federal Reserve 
System and officers and employees of the Federal Reserve 
System related to subparagraphs (A) through (C) of this 
paragraph. 
(bXlXA) Except as provided in this subsection, an officer or 
employee of the General Accounting Office may not disclose infor-
mation identifying an open bank, an open bank holding company, or 
a customer of an open or closed bank or bank holding company. 
(B) The Comptroller General may disclose information related to 
the affairs of a closed bank or closed bank holding company identify-
ing a customer of the closed bank or closed bank holding company 
only if the Comptroller Greneral believes the customer had a control-
ling influence in the management of the closed bank or closed bank 
holding company or was related to or affiliated with a person or 
group having a controlling influence. 
(2) An officer or employee of the General Accounting Office may 
discuss a customer, bank, or bank holding company with an official 
of an appropriate Federal banking agency and may report an appar-
ent crimingd violation to an appropriate law enforcement authority 
of the United States Government or a State. 
(3) This subsection does not authorize an officer or employee of an 
appropriate Federal banking agency to withhold information from a 
committee of the Congress authorized to have the information. 
(cXlXA) To carry out this section, all records and property of or 
used by an appropriate Federal banking agency, including samples 
of reports of examinations of a bank or bank holding company the 
Comptroller General considers statistically meanin^ul and work-
papers and correspondence related to the reports shall be made 
available to the Comptroller General, including such records and 
property pertaining to the coordination of international regulation, 
supervisor and examination activities of an appropriate Federal 
banking agency. 
(B) The Comptroller General shall give each appropriate Federal 
banking agency a current list of officers and employees to whom, 
with proper identification, records and property may be made avail-
able, and who may make notes or copies necessary to carry out an 
audit. 
(C) Each appropriate Federal banking agency shall give the Comp-
troller General suitable and lockable offices and furniture, tele-
phones, and access to copying facilities. 
Federal Reserve 
Board and 
bank audits, 
exclusions. 
Information 
disclosure. 
Reporting 
criminal 
violations. 
Information 
withholding 
from Congress. 
Records and 
property. 
97 STAT. 1284 
PUBLIC LAW 98-181—NOV. 30, 1983 
Transmittal to 
(Congress. 
12 use 3912. 
(2) Except for the temporary removal of workpapers of the Ck)mp-
troller General that do not identify a customer of an open or closed 
bank or bank holding company, an open bank, or an open bank 
holding company, all workpapers of the Comptroller General and 
records and property of or used by an appropriate Federal banking 
agency that the Comptroller General possesses during an audit, 
shall remain in such agency. The Comptroller General shall prevent 
unauthorized access to records or property. 
EQUAL REPRESENTATION FOR THE FEDERAL DEPOSIT INSURANCE 
CORPORATION 
12 use 3911. 
SEC. 912. As one of the three Federal bank regulatory and supervi-
sory agencies, and as the insurer of the United States banks 
involved in international lending, the Federal Deposit Insurance 
Corporation shall be given equal representation with the Board of 
Governors of the Federal Reserve System and the Office of the 
Comptroller of the Currency on the Committee on Banking Regula-
tions and Supervisory Practices of the Group of Ten Countries and 
Switzerland. 
REPORTS 
SEC. 913. Not later than six months after the date of the enact-
ment of this title, the Secretary of the Treasury or the appropriate 
Federal banking agencies as specified below, shall transmit a report 
to the Congress regarding changes to improve the international 
lending operations of banking institutions. Such report shall— 
(1) review the laws, regulations, and examination and 
supervisory procedures and practices, governing international 
banking in each of the Group of Ten Nations and Switzerland 
with particular attention to such matters bearing on capital 
requirements, lending limits, reserves, disclosure, examiner 
access, and lender of last resort resources, such report to be 
prepared by the Chairman of the Board of Governors of the 
Federal Reserve System; 
(2) outline progress made in reaching the goal specified in 
Ante, p. 1280. 
section 908(c), such report to be prepared by the Secretary of the 
Treasury and the Chairman of the Board of Governors of the 
Federal Reserve System; and 
(3) indicate actions taken to implement this title by the 
appropriate Federal banking agencies, including a description 
of the actions taken in carrying out the objectives of the title 
and any actions taken by any appropriate Federal banking 
agency that are inconsistent with the uniform implementation 
by the appropriate Federal banking agencies of their respective 
authorities under this title, and any recommendations for 
amendments to this or other legislation, such report to be 
prepared by the appropriate Federal banking agencies. 
TITLE X—MULTILATERAL DEVELOPMENT BANKS 
22 use 283Z-3. 
INTER-AMERICAN DEVELOPMENT BANK 
SEC. 1001. The Inter-American Development Bank Act (22 U.S.C. 
283 et seq.) is amended by adding at the end thereof the following: 
"SEC. 31. (aXD The United States Governor of the Bank is author-
ized to vote for resolutions— 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1285 
"(A) which were proposed by the Governors at a special 
meeting in February 1983; 
"(B) which are pending before the Board of Governors of the 
Bank; and 
"(C) which provide for— 
"(i) an increase in the authorized capital stock of the 
Bank and subscriptions thereto; and 
"(ii) an increase in the resources of the Fund for Special 
Operations and contributions thereto. 
"(2XA) Upon adoption of the resolutions specified in paragraph (1), 
the United States Governor of the Bank is authorized on behalf of 
the United States to— 
"(i) subscribe to 427,396 shares of the increase in the author-
ized capital stock of the Bank; and 
"(ii) contribute $350,000,000 to the Fund for Special 
Operations. 
"(B) Any commitment to make such subscriptions to paid-in and 
callable capital stock and to make such contributions to the Fund 
for Special Operations shall be effective only to such extent or in 
such amounts as are provided in advance in appropriation Acts. 
"(b) In order to pay for the increase in the United States subscrip-
tion and contribution provided for in this section, there are author-
ized to be appropriated, without fiscal year limitation, for payment 
by the Secretary of the Treasury— 
"(1) $5,155,862,744 for the United States subscriptions to the 
capital stock of the Bank; and 
"(2) $350,000,000 for the United States share of the increase in 
the resources of the Fund for Special Operations.". 
U.S. subscription 
and 
contribution. 
Appropriation 
authorization. 
ASIAN DEVELOPMENT BANK 
SEC. 1002. The Asian Development Bank Act (22 U.S.C. 285 et seq.) 
is amended by adding at the end thereof the following: 
"SEC. 27. (aXD The United States Governor of the Bank is author-
ized to subscribe on behalf of the United States to one hundred 
twenty-three thousand three hundred and seventy-five additional 
shares of the capital stock of the Bank. 
"(2) Any subscription to the capital stock of the Bank shall be 
effective only to such extent or in such amounts as are provided in 
advance in appropriation Acts. 
"(b) In order to pay for the increase in the United States subscrip-
tion to the Bank provided for in subsection (a), there are authorized 
to be appropriated, without fiscal year limitation, $1,322,999,476 for 
pavment by the Secretary of the Treasury. 
(cXD The Congress hereby finds that— 
"(A) the Republic of China (Taiwan) is a charter member in 
good standing of the Asian Development Bank; 
"(B) the Republic of China has grown from a borrower to a 
lender in the Asian Development Bank; and 
"(C) the Republic of China provides, through its economic 
success, a model for other nations in Asia. 
"(2) It is the sense of the Congress that— 
"(A) Taiwan, Republic of China, should remain a full member 
of the Asian Development Bank, and that its status within that 
body should remain unaltered no matter how the issue of the 
People's Republic of China's application for membership is 
disposed of; 
22 u s e 285x. 
Appropriation 
authorization. 
97 STAT. 1286 
PUBLIC LAW 98-181—NOV. 30, 1983 
Asian Develop-
ment Fund. 
22 u s e 285y. 
Appropriation 
authorization. 
"(B) the President and the Secretary of State should express 
support of Taiwan, Republic of China, making it clear that the 
United States will not countenance attempts to expel Taiwan, 
Republic of China, from the Asian Development Bank; and 
"(C) the Secretary of the Senate and Clerk of the House shall 
transmit a copy of this resolution to the President with the 
request that he transmit such copy to the Board of Governors of 
the Asian Development Bank. 
"SEC. 28. (aXD The United States Governor of the Bank is author-
ized to contribute on behalf of the United States $520,000,000 to the 
Asian Development Fund, a special fund of the Bank. 
"(2) Any commitment to make the contribution authorized in 
paragraph (1) shall be made subject to obtaining the necessary 
appropriations. 
"(b) In order to pay for the United States contribution to the 
Asian Development Fund provided for in this section, there are 
authorized to be appropriated, without fiscal year limitation, 
$520,000,000 for payment by the Secretary of the Treasury.". 
U.S. 
contribution. 
22 use 290g-12. 
Appropriation 
authorization. 
22 use 262d. 
AFRICAN DEVELOPMENT FUND 
SEC. 1003. The African Development Fund Act (22 U.S.C. 290g et 
seq.) is amended by adding at the end thereof the following: 
"SEC. 213. (aXD The United States Governor of the Fund is 
authorized to contribute on behalf of the United States $150,000,000 
to the Fund as the United States contribution to the third replenish-
ment of the resources of the Fund. 
"(2) Any commitment to make the contribution authorized in 
paragraph (1) shall be made subject to obtaining the necessary 
appropriations. 
"(b) In order to pay for the United States contribution provided for 
in this section, there are authorized to be appropriated, without 
fiscal year limitation, $150,000,000 for payment by the Secretary of 
the Treasury.". 
HUMAN RIGHTS 
SEC. 1004. Section 701 of the International Financial Institutions 
Act (22 U.S.C. 262g) is amended— 
(1) in subsection (aXD, by striking out "consistent"; and 
(2) in subsection (gXD, by striking out "The Secretary of the 
Treasury, in consultation with the Secretary of State, shall 
report quarterly" and inserting in lieu thereof "Not later than 
thirty days after the end of each calendar quarter, the Secretary 
of the Treasury, in consultation with the Secretary of State, 
shall report.". 
STUDY 
SEC. 1005. (a) It is the sense of (Dongress that— 
(1) the multilateral development institutions serve an invalu-
able role in promoting development abroad; 
(2) foreign direct investment, trade, and commercial lending 
make a contribution at least equal to that of development 
assistance in promoting development; 
(3) United States economic interests are vitally affected by 
conditions in developing countries; and 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1287 
(4) the multilateral development banks already play an im-
portant, although indirect, role in encouraging private invest-
ment flows. 
(bXlXA) The Secretary of the Treasury shall conduct a study of 
how the multilateral development institutions could more actively 
encourage foreign direct investment and commercial capital flows 
and channel such investment and capital flows to developing coun-
tries for sound and productive development projects through the 
International Finance Corporation in cooperation with the multilat-
eral development institutions or through a new investment banking 
facility at one or more of these institutions. 
(B) In addition, such study shall evaluate whether the multilateral 
development institutions could help increase foreign direct invest-
ment and commercial capital flows by insuring that the interests of 
investors and host governments are adequately protected. 
(2) The Secretary of the Treasury shall solicit comments on such 
study from the multilateral development institutions and shall 
incorporate such comments with the study in a report to be trans-
mitted to both Houses of the Congress within one hundred and 
eighty days of the date of the enactment of this section. 
Comments and 
report to 
Congress. 
PERSONNEL PRACTICES 
SEC. 1006. (a) It shall be the policy of the United States that no 
initiatives, discussions, or recommendations concerning the place-
ment or removal of any Inter-American Development Bank, Asian 
Development Bank, or African Development Bank personnel shall 
be based on the political philosophy or activity of the individual 
under consideration. 
(b) The Secretary of the Treasury shall consult with the Chairman 
and ranking minority member of the Committee on Banking, 
Finance and Urban Affairs of the House of Representatives and the 
Committee on Foreign Relations of the Senate and the relevant 
subcommittees prior to any discussions or recommendations by any 
official of the United States Government concerning the placement 
or removal of any principal officer of the Inter-American Develop-
ment Bank, Asian Development Bank, or African Development 
Bank management. 
22 u s e 276C-3. 
Consultation 
with 
congressional 
committees. 
TITLE XI—IMF APPROPRIATION 
IMF APPROPRIATION 
SEC. 1101. (a) Notwithstanding any other provision of this Act, 
there is appropriated for an increase in the United States quota in 
the International Monetary Fund, the dollar equivalent of 
5,310,800,000 Special Drawing Rights, to remain available until 
expended. 
(b) Notwithstanding any other provision of this Act, there is 
appropriated for an increase in loans to the International Monetary 
Fund under the General Arrangements to Borrow, the dollar equiv-
alent of 4,250,000,000 Special Drawing Rights less $2,000,000,000 
previously appropriated by the Act of October 23, 1962 (Public Law 
87-872, 76 Stat. 1163), pursuant to the authorization contained in 
section 17 of the Bretton Woods Agreements Act and merged with 
this appropriation, to remain available until expended. 
22 u s e 286e-2. 
97 STAT. 1288 
PUBLIC LAW 98-181—NOV. 30, 1983 
CONDITION OF INTERNATIONAL FINANCIAL SYSTEM 
SEC. 1102. (a) The Congress finds and declares that— 
(1) the international banking system is currently threatened 
by a series of national financial crises; 
(2) the Congress is desirous of finding a solution to the current 
monetary crisis which will result in a stable monetary system 
and preservation of a liberal international economy; 
(3) this solution must be found without placing inordinate 
pressures on United States credit markets; 
(4) the breakdown in the Bretton Woods monetary system has 
contributed directly to these problems; 
(5) the economic policies prescribed by the International Mon-
etary Fund can be harmful to economic growth; and 
(6) the International Monetary Fund currently holds approxi-
mately $40,000,000,000 of uncommitted assets in the form of 
gold bullion and has not utilized them fully to date. 
(b) It is the sense of the Senate that— 
(1) restoration of a stable monetary system is necessary to 
assure economic growth and to maintain a liberal international 
economic system; 
(2) as a first step toward this restoration the Secretary of the 
Treasury should call for an international conference on the 
monetary system to investigate its systemic problems; 
(3) in coping with the current financial crisis, the Interna-
tional Monetary Fund should make fuller use of its current 
assets, including its gold holdings; 
(4) the International Monetary Fund should revise the condi-
tions placed on its loans so as to encoursige economic growth. 
GENERAL 
OPERATING 
EXPENSES 
Of the funds appropriated under this heading in the Department 
of Housing and Urban Development-Independent Agencies Appro-
Ante, p. 219. 
priation Act, 1984 (Public Law 98-45), $1,000,000 shall be available 
for an evaluation of the emergency veterans' job training program. 
CHAPTER II 
LEGISLATIVE BRANCH 
SENATE 
PAYMENT TO WIDOWS AND HEIRS OF DECEASED MEMBERS OF CONGRESS 
For payment to Helen H. Jackson, widow of Henry M. Jackson, 
late a Senator from the State of Washington, $69,800. 
SALARIES, OFFICERS AND EMPLOYEES 
OFFICES OF THE MAJORITY AND MINORITY LEADERS 
For an additional amount for "Offices of the Majority and Minor-
ity Leaders", $140,000. 
PUBLIC LAW 98-181—NOV. 30, 1983 
CONTINGENT EXPENSES OF THE SENATE 
SECRETARY OF THE SENATE 
For an additional amount for "Secretary of the Senate", $60,000. 
GENERAL PROVISIONS 
SEC. 1201. The Sergeant at Arms and Doorkeeper of the Senate 
(hereinafter in this section referred to as the "Sergeant at Arms") 
may designate one or more employees in the Office of the Sergeant 
at Arms and Doorkeeper of the Senate to approve, on his behalf, all 
vouchers, for payment of moneys, which the Sergeant at Arms is 
authorized to approve. Whenever the Sergeant at Arms makes a 
designation under the authority of the preceding sentence, he shall 
immediately notify the Committee on Rules and Administration in 
writing of the designation, and thereafter any approval of any 
voucher, for pajrment of moneys, by an employee so designated shall 
(until such designation is revoked and the Sergeant at Arms notifies 
the Ck)mmittee on Rules and Administration in writing of the 
revocation) be deemed and held to be approved by the Sergeant at 
Arms for all intents and purposes. 
SEC. 1202. Any provision of law which is enacted prior to October 
1, 1983, and which directs the Sergeant at Arms and Doorkeeper of 
the Senate to deposit any moneys in the United States Treasury for 
credit to the account, within the contingent fund of the Senate, for 
"Miscellaneous Items", or for "Automobiles and Maintenance" 
shall, on and after October 1, 1983, be deemed to direct him to 
deposit such moneys in the United States Treasury for credit to the 
account, within the contingent fund of the Senate, for the "Sergeant 
at Arms and Doorkeeper of the Senate". 
SEC. 1203. (a) Section 105(aX2) of the Legislative Branch Appropri-
ation Act, 1968 (2 U.S.C. 61-1(2)) is amended to read as follows: 
"(2) New or changed rates of compensation (other than changes in 
rates which are made by law) of any such employee (other than an 
employee who is an elected officer of the Senate) shall be certified in 
writing to the Disbursing Office of the Senate (and, for purposes of 
this paragraph, a new rate of compensation refers to compensation 
in the case of an appointment, transfer from one Senate appointing 
authority to another, or promotion by an appointing authority to a 
position the compensation for which is fixed by law). In the case of 
an appointment or other new rate of compensation, the certification 
must be received by such office on or before the day the rate of new 
compensation is to become effective. In any other case, the changed 
rate of compensation shall take effect on the first day of the month 
in which such certification is received (if such certification is re-
ceived within the first ten days of such month), on the first day of 
the month after the month in which such certification is received (if 
the day on which such certification is received is after the twenty-
fifth day of the month in which it is received), and on the sixteenth 
day of the month in which such certification is received (if such 
certification is received after the tenth day and before the twenty-
sixth day of such month). Notwithstanding the preceding sentence, 
if the certification for a changed rate of compensation for an em-
ployee specifies an effective date of such change, such change shall 
become effective on the date so specified, but only if the date so 
specified is the first or sixteenth day of a month and is after the 
97 STAT. 1289 
2 u s e 61e-4. 
2 u s e 68-4. 
Employee com-
pensation rates, 
certification. 
97 STAT. 1290 
PUBLIC LAW 98-181—NOV. 30, 1983 
2 u s e 61-1 note. 
Effective date. 
2 u s e 58 note. 
2 u s e 58a. 
Repeal. 
effective date prescribed in the preceding sentence; and, notwith-
standing such sentence and the preceding provisions of this sen-
tence, any changed rate of compensation for a new employee or an 
employee transferred from one appointing authority to another 
shall take effect on the date of such employee's appointment or 
transfer (as the case may be) if such date is later than the effective 
date for such changed rate of compensation as prescribed by such 
sentence.". 
(b) The amendment made by subsection (a) shall be applicable in 
the case of new or changed rates of compensation which are? certified 
to the Disbursing Office of the Senate on or after January 1, 1984. 
SEC. 1204, (a) The fifth sentence of subsection (e) of section 506 of 
the Supplemental Appropriations Act, 1973 (2 U.S.C. 58(e)) is 
amended by striking out "or Minority Whip" and inserting in lieu 
thereof "Minority Whip, Secretary of the Conference of the Major-
ity, or Secretary of the Conference of the Minority". 
(b) The amendment made by subsection (a) shall be effective in the 
case of expenses incurred or charges imposed on or after October 1, 
1983. 
SEC. 1205. (a) The Sergeant at Arms and Doorkeeper of the Senate 
shall furnish each Senator local and long-distance telecommunica-
tions services in Washington, District of Columbia, in accordance 
with regulations prescribed by the Senate Committee on Rules and 
Administration; and the costs of such service shall be paid out of the 
contingent fund of the Senate from moneys made available to him 
for that purpose. 
(b) Subsection (g) of section 112 of the Legislative Branch Appro-
priation Act, 1978 (2 U.S.C. 58a) is repealed, effective on the first day 
of the first calendar month which begins more than thirty days after 
the date of enactment of this Act. 
HOUSE OF REPRESENTATIVES 
PAYMENTS TO WIDOWS AND HEIRS OF DECEASED MEMBERS OF CONGRESS 
For pajTnent to Kathryn Jackson McDonald, widow of Honorable 
Larry McDonald, late a Representative from the State of Georgia, 
$69,800. 
RAILROAD ACCOUNTING PRINCIPLES BOARD 
SALARIES AND EXPENSES 
For salaries and expenses. Railroad Accounting Principles Board, 
$50,000, to be expended in accordance with section 302(a) of Public 
Law 96-448 (49 U.S.C. 11161-11168), subject to the enactment of 
authorizing legislation. 
PUBLIC LAW 98-181—NOV. 30, 1983 
CHAPTER in 
DEPARTMENT OF THE INTERIOR 
BUREAU OF RECLAMATION 
97 STAT. 1291 
CONSTRUCTION PROGRAM 
For an additional amount for "Construction program", $1,500,000, 
to remain available until expended, for the Secretary of the Interior 
to construct a new headquarters for the operation of the Valley 
Division of the Yuma Reclamation Project and to cover the accom-
panying relocation costs associated with the move. The cost of this 
work will be nonreimbursable and constructed features will be 
turned over to the Yuma Valley Water Users Association for oper-
ation and maintenance. 
DEPARTMENT OF ENERGY 
ENERGY SUPPLY, RESEARCH AND DEVELOPMENT ACTTVITIES 
For an additional amount for "Energy Supply, Research and 
Development", $8,000,000, to remain available until expended, of 
which $4,000,000 shall be made available to implement the four atoll 
health care plan authorized in section 102 of Public Law 96-205 and 
$3,000,000 shall be for construction and operation of a second small 
community solar energy project on the island of Molokai, Hawaii. 
ATOMIC ENERGY DEFENSE ACTIVITIES 
For an additional amount for "Atomic Energy Defense Activities", 
for Project 77-13-f, $57,000,000, to remain available until expended. 
Of the funds appropriated for "Atomic Energy Defense Activities" 
in Public Law 98-50, an amount shall be made available to purchase 
4 additional helicopters. 
48 u s e 1681 
note. 
Ante, p. 247. 
TERMINATION OF THE USE OF CERTAIN SEEPAGE BASINS 
Of the funds heretofore appropriated for "Atomic Energy Defense 
Activities", $30,000,000 is to be made available for use by the 
Secretary of Energy— 
(1) to terminate, within 24 months after the date of enactment 
of this Act, the use of seepage basins associated with the fuel 
fabrication area at the Savannah River Plant, Aiken, South 
Carolina; and 
(2) to submit to the appropriate committees of Congress, 
within 6 months after the date of enactment of this Act, a plan 
for the protection of groundwater at the Savannah River Plant 
which shall include— 
(A) proposed methods for discontinuing the use of seepage 
basins associated with the materials processing areas; 
(B) provisions for the implementation of other actions 
appropriate to mitigate any significant adverse effects of 
on-site or off-site groundwater and of chemical contami-
nants in seepage basins and adjacent areas, including the 
removal of such contaminants where necessary; and 
Groundwater 
protection plan 
to congressional 
committees. 
97 STAT. 1292 
Ante, p. 255. 
42 u s e 10222. 
PUBLIC LAW 98-181—NOV. 30, 1983 
(C) provisions for continuing the expanded monitoring 
program of groundwater impacts involving the appropriate 
South Carolina agencies in accordance with the statutory 
responsibilities of such agencies. 
(RESCISSION) 
Of the funds appropriated for "Atomic Energy Defense Activities" 
m Public Law 98-50 for Project 82-D-109, 155 mm artillery fired 
atomic projectile, $50,000,000 are rescinded. 
NUCLEAR WASTE DISPOSAL FUND 
For an additional amount for "Nuclear Waste Disposal Fund", 
$12,000,000, to remain available until expended, to be derived from 
the Nuclear Waste Fund. To the extent that balances in the fund 
are not sufficient to cover amounts available for obligation in this 
account, the Secretary shall exercise his authority pursuant to 
section 302(eX5) of Public Law 97-425 to issue obligations to the 
Secretary of the Treasury. 
INDEPENDENT AGENCIES 
APPALACHIAN REGIONAL COMMISSION 
FUNDS APPROPRIATED TO THE PRESIDENT 
Vessel Kennedy, 
restoration 
and display. 
Water delivery 
to Everglades 
National Park. 
84 Stat. 310. 
APPALACHIAN REGIONAL DEVELOPMENT PROGRAMS 
For an additional amount for "Appalachian Regional Develop-
ment Programs", $9,400,000, to remain available until expended, for 
the Appalachian Development Highway System. 
GENERAL PROVISIONS 
SEC. 1300. No part of the funds appropriated under this Act or any 
other provisions of law may hereafter be used by the Department of 
Justice to represent the Tennessee Valley Authority in litigation in 
which the Authority is a party unless the Department is requested 
to provide representation in such litigation by the Authority. 
SEC. 1301. Within funds available to the Corps of Engineers—Civil 
for Operation and Maintenance, General, not to exceed $2,000,000 
shall be used to rehabilitate, restore, and refurbish the Corps of 
Engineers dredge vessel Kennedy, to transport the vessel to New 
Orleans, Louisiana, and there to operate, maintain, and display the 
vessel for the duration of the 1984 Louisiana World Exposition. Such 
operation, maintenance, and display shall include the preparation 
and use of audio-visual and other exhibits to inform the public of 
Corps of Engineers water resources activities. 
SEC. 1302. The Secretary of the Army is authorized, for a period of 
two years beginning with enactment of this Act with the concur-
rence of the Director of the National Park Service and the South 
Florida Water Management District, to modify the schedule for 
delivery of water from the central and southern Florida project to 
the Everglades National Park required by section 2 of the River 
Basin Monetary Authorization and Miscellaneous Civil Works 
Amendments Act of 1970 (Public Law 91-282) and to conduct an 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1293 
experimental program for the delivery of water to the Everglades 
National Park from such project for the purpose of determining an 
improved schedule for such delivery. 
The Secretary of the Army is further authorized to acquire such 
interest in lands currently in agriculture production which are 
adversely affected by smy modification of schedule for water delivery 
to Everglades National Park under the preceding paragraph. The 
Secretary shall acquire any interest in land at the fair market value 
of such interest based on conditions existing after the construction 
of the project described in the preceding paragraph of this section 
and before any modification of such delivery schedule. The Secre-
tary is also authorized to construct necessary flood protection meas-
ures for protection of homes in the area affected by any modification 
of such delivery schedule, at an estimated cost of $10,000,000. 
SEC. 1303. The Secretary of the Army, acting through the Chief of 
Engineers, is directed to utilize available construction general 
appropriations to complete bank protection works at Wheeling 
Island, West Virginia, in the Hannibal Lock and Dam pool, at an 
estimated cost of $135,000 and to complete the local flood protection 
project at Russell, Kentucky, at an estimated cost of $600,000. 
SEC. 1304. The Secretary of the Army, acting through the Chief of 
Engineers, is directed to utilize available general investigation funds 
to initiate a study of alternatives to the Mentone Dam of the Santa 
Ana Mainstem project in California and the flood control study of 
the Illinois River between Henry and Naples, Illinois. 
SEC. 1305. Funds available or hereafter made available for the Red 
River Waterway Project shzdl be used to provide for construction of 
a high level replacement bridge for the Louisiana and Arkansas 
Railway Company near Alexandria, Louisiana, pursuant to an 
agreement between the Chief of Engineers and the Railway Com 
pany and upon terms and conditions acceptable to the Chief or 
Engineers in the interest of navigation and the expeditious prosecu 
tion of the Project. Federal costs of the bridge replacement, includ 
ing design and construction, shall be limited to $24,270,000 (July 1, 
1983 price levels), with an adjustment to this amount, if any, as may 
be justified by reason of a fluctuation in the cost of construction as 
indicated by the Engineer News Record's applicable construction 
indices, plus the cost of necessary real estate interests to be acquired 
by the Corps of Engineers, which interests may be conveyed to the 
Railway Company. 
SEC. 1306. Section 116(a) of the Rivers and Harbors Act of 1970 
(Public Law 91-611) is amended by adding at the end thereof the 
following: 
"Those areas of the river between Howard Street and Cald-
well Avenue in Niles, Illinois, that have accumulated silt and 
side bank sloughing should be excavated to the normal align-
ment and depth, and the bank rebuilt where sloughing has 
occurred at an estimated cost of $100,000.". 
Water projects, 
W. Va. and Ky. 
Water project 
studies, 
Calif, and 111. 
Red River 
Waterway 
Project. 
84 Stat. 1822. 
97 STAT. 1294 
PUBLIC LAW 98-181—NOV. 30, 1983 
CHAPTER IV 
DEPARTMENT OF THE INTERIOR 
FISH AND WILDLIFE AND PARKS 
UNITED STATES FISH AND WILDUFE SERVICE 
RESOURCE MANAGEMENT 
For an additional amount for "Resource management", $500,000. 
NATIONAL PARK SERVICE 
OPERATION OF THE NATIONAL PARK SYSTEM 
Funds appropriated to the National Park Service under this head 
96 Stat. 1970. 
in Public Law 97-394 shall be available to reimburse the Estate of 
Bess W. Truman for operation expenses, including maintenance and 
protection, of the Harry S Truman National Historic Site incurred 
during the period October 18, 1982 through December 27, 1982. 
CONSTRUCTION 
Notwithstanding any other provision of law, section 4 of the Act of 
October 26, 1972, as amended (86 Stat. 1181; 16 U.S.C. 433c note), is 
amended by striking the numeral "9,327,000" and inserting in lieu 
thereof "10,500,000". 
LAND ACQUISITION AND STATE ASSISTANCE 
For an additional amount for "Land acquisition and State assist-
ance", $25,500,000, to be derived from the Land and Water Conser-
vation Fund and to remain available until expended. 
OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT 
ABANDONED MINE RECLAMATION FUND 
For an additional amount for "Abandoned Mine Reclamation 
Fund", $42,000,000, to remain available until expended, to be 
derived from receipts of the Abandoned Mine Reclamation Fund to 
provide for the acquisition of private homes and businesses and 
nonprofit buildings occupied or utilized continuously since Septem-
ber 1, 1983, and the lands on which they are located, excluding all 
mineral interests, and the relocation of families and individuals 
residing in the Borough of Centralia and the Village of Byrnesville 
and on outlying properties who are threatened by the progressive 
movement of the mine fire currently burning in and around the 
Borough of Centralia: Provided, That all acquisitions made by the 
Commonwealth of Pennsylvania under the authority provided 
herein shall be at fair market value without regard to mine fire 
related damages as was properly done by OSM in its prior acquisi-
tions of Centralia properties. These activities must comply with the 
Uniform Relocation Assistance and Real Property Acquisition Poli-
cies Act of 1970 (42 U.S.C. 4601, et seq.), but shall not constitute a 
major action within the meaning of section 102(2Xc) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332): Provided further. 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1295 
That no funds may be used to pay for the actual construction costs of 
permanent housing: Provided further, That the Federal discretion-
ary share shall not exceed 75 percent of the cost of such acquisition 
or relocation: Provided further, That any funds remaining available 
following completion of these acquisition and relocation activities 
may be made available to the Commonwealth of Pennsylvania to 
undertake other approved reclamation projects pursuant to section 
405 of the Surface Mining Control and Reclamation Act of 1977: 
30 USC 1235. 
Provided further. That funds made available, under this head to the 
Commonwealth of Pennsylvania shall be accounted against the total 
Federal and State share funding which is eventually allocated to the 
Commonwealth. 
BUREAU OF INDIAN AFFAIRS 
OPERATION OF INDIAN PROGRAMS 
For 
an additional 
amount 
for pre-kindergarten 
programs, 
$1,600,000. 
Notwithstanding the provisions of Public Law 97-257, the funds 
96 Stat. 818. 
appropriated therein under this head for transfer to the State of 
.Adaska shall remedn available until expended and may be used for 
reconstruction of day schools formerly operated by the Bureau of 
Indian Affairs. 
GENERAL PROVISIONS 
Funds available to the Department of the Interior and the Forest 
Service in fiscal year 1984 for the purpose of contracting for services 
that require the utilization of privately owned aircraft for the 
carriage of cargo or freight shall be used only to contract for aircraft 
that are certified as airworthy by the Administrator of the Federal 
Aviation Administration as standard category aircraft under 14 
CFR 21.183 unless the Secretary of the contracting department 
determines that such aircraft are not reasonably available to con-
duct such services. 
Subsection (d) of section 109 of the Act entitled "An Act making 
appropriations for the Department of the Interior and related agen-
cies for the fiscal year ending September 30, 1984, and for other 
purposes" (Public Law 98-146), is amended by striking out "The 
Ante, p. 936. 
limitation with regard to this subsection on the use of funds shall 
not apply if any State-owned tide or submerged lands within the 
area described in this subsection are now or hereafter subject to sale 
or lease for the extraction of oil or gas from such State lands; and" 
and insert in lieu thereof "The limitation with regard to this 
subsection on the use of funds shall not apply to submerged lands 
within 30-nautical miles off any Florida land mass located south of 
25 degrees north latitude; and". 
DEPARTMENT OF ENERGY 
Privately owned 
aircraft, 
service 
contracts. 
FOSSIL ENERGY RESEARCH AND DEVELOPMENT 
For an additional amount for "Fossil Energy Research and Devel-
opment", $1,000,000, to remain available until expended. 
97 STAT. 1296 
PUBLIC LAW 98-181—NOV. 30, 1983 
Budget deferral, 
disapproval by 
Congress. 
Child care 
food program. 
SMITHSONIAN INSTITUTION 
SALARIES AND EXPENSES, NATIONAL GALLERY OF ART 
For an additional amount for special exhibitions, $250,000, to 
remain available until expended. 
CHAPTER V 
UNITED STATES RAILWAY ASSOCIATION 
ADMINISTRATIVE EXPENSES 
The Congress disapproves the proposed deferral of budget author-
ity in the amount of $2,050,000 for the United States Railway 
Association (deferral numbered D84-20), as set forth in the Presi-
dent's special message which was transmitted to the Congress on 
October 3, 1983. This disapproval shall be effective on the date of 
enactment of this Act and the amount of the proposed deferral 
disapproved herein shall be made available for obligation. 
CHAPTER VI 
DEPARTMENT OF AGRICULTURE 
FEDERAL GRAIN INSPECTION SERVICE 
INSPECTION AND WEIGHING SERVICES 
For expenses necessary to recapitalize the revolving fund estab-
lished under section 7(jXl) of the United States Grain Standards Act, 
as amended (7 U.S.C. 790'Xl)), $6,000,000. 
FOOD AND NUTRITION SERVICE 
Effective on October 16, 1983, and until April 16, 1984, the Secre-
tary of Agriculture shall not reduce or withhold reimbursements, 
shall not collect or attempt to collect funds from an institution, its 
parents, affiliates or successors, and shall not otherwise affect an 
institution's participation in the child care food program (42 U.S.C. 
1766), where the Secretary's claim relates to payments made in New 
York during the period January 1, 1975, through December 31, 1976, 
by the Secretary to the institution as a participant in the child care 
food progrgun. 
AGRICULTURAL STABIUZATION AND CONSERVATION SERVICE 
EMERGENCY CONSERVATION PROGRAM 
For an additional amount to carry out the emergency conserva-
tion program authorized by title IV of the Agricultural Credit Act of 
1978 (16 U.S.C. 2201 et seq.), $7,000,000, to remain available until 
expended. 
DONATION OF CERTAIN PROPERTY 
Notwithstanding any other provision of law, the Secretary of 
Agriculture shall have the authority to donate, without considera-
tion, the land, buildings, facilities and equipment at the United 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1297 
States Department of Agriculture Plant Introduction Station, com-
monly known as Bamboo Research Station in Savannah, Georgia, to 
the College of Agriculture, University of Georgia. 
CHAPTER VII 
DEPARTMENT OF EDUCATION 
HIGHER EDUCATION 
For an additional amount for part B of title IX of the Higher 
Education Act of 1965, $500,000. 
TITLE n 
20 use 1134d. 
GENERAL PROVISIONS 
SEC. 2001. No part of any appropriation contained in this Act shall 
remain available for obligation beyond September 30, 1984, unless 
expressly so provided herein. 
SEC. 2002. Notwithstanding any other provision of law, the terms 
"meat" and "meat food products" as used in the Prompt Payment 
Act (Public Law 97-177; 96 Stat. 85) in section 2(aX2XBXi) thereof 
shall include also edible fresh or frozen poultry meat, perishable 
poultry meat food products, fresh eggs and perishable egg products; 
and the Secretgiry of Agriculture, out of funds available to the 
Commodity Credit Corporation, upon proper proof of loss, shall pay 
outstanding claims for losses resulting from the 1980 embargo on 
sales of agricultural commodities to the Soviet Union sustained by 
businesses dealing in pork and frozen hog carcasses as well as edible 
fresh or frozen poultry meat, perishable poultry meat food products, 
fresh eggs and perishable egg products. 
SEC. 2003. (a) Section 4 of the Act entitled "An Act to save 
daylight and to provide standard time for the United States", 
approved March 19,1918 (15 U.S.C. 263), is amended— 
(1) by striking out "Yukon" and inserting in lieu thereof 
"Alaska"; 
(2) by striking out "Alaska-Hawaii" and inserting in lieu 
thereof "Hawaii-Aleutian"; and 
(3) by striking out "Bering" and inserting in lieu thereof 
"Samoa". 
(bXD Any reference to Yukon standard time in any law, regula-
tion, map, document, record, or other paper of the United States 
shall be held and considered to be a reference to Alaska standard 
time. 
(2) Any reference to Alaska-Hawaii standard time in any law, 
regulation, map, document, record, or other paper of the United 
States shall be held and considered to be a reference to Hawaii-
Aleutian standard time. 
(3) Any reference to Bering standard time in any law, regulation, 
map, document, record, or other paper of the United States shall be 
held and considered to be a reference to Samoa standard time. 
(c) The Regional Rail Reorganization Act of 1973 (45 U.S.C. 701 et 
seq.) is amended— 
(1) by striking from section 201(e) of such Act "1983" and 
inserting in lieu thereof "1985"; and 
"Meat" and 
"meat 
food products.' 
31 use 3903 
note. 
15 use 263 note. 
45 use 711. 
97 STAT. 1298 
45 use 748. 
Grenada 
rescue. 
Ante, p. 32. 
"Period of 
eligibility." 
Ante, p. 1153. 
45 u s e 368 note. 
Ante, p. 32. 
Ante, p. 222. 
PUBLIC LAW 98-181—NOV. 30, 1983 
(2) by striking from section 308(cXl) of such Act "1983" and 
inserting in lieu thereof "1985". 
SEC. 2004. It is the sense of the Senate that the United States 
Armed Forces engaged in military operations in Grenada are to be 
commended for their rescue of United States citizens on that island, 
and for their valor, success, and exemplary conduct in battle, which 
has been in the highest traditions of the military service. 
SEC. 2005. (a) Section 17 of the Railroad Unemployment Insurance 
Act is amended— 
(1) in subsection (a)(2), by inserting ", or the benefit year 
beginning July 1,1983" after "July 1,1982"; 
(2) in subsection (e), by striking out "June 30, 1983" and 
inserting in lieu thereof "June 30,1984"; and 
(3) by amending subsection (f) to read as follows: 
"(fKD For purposes of this section the term 'period of eligibility' 
means, with respect to any employee for the benefit year beginning 
July 1,1982, the period beginning with the later o
f
— 
"(A) the first day of unemployment following the day on 
which he exhausted his rights to unemployment benefits (as 
determined under subsection (b)) in such benefit year; or 
"(B) March 10,1983, 
and consisting of five consecutive registration periods (without 
regard to benefit year); except that for purposes of this paragraph, 
any registration period beginning after June 30, 1983, and before the 
date of the enactment of the Supplemental Appropriations Act, 
1984, shall not be taken into account for purposes of payment of 
benefits, or in determining the consecutiveness of registration 
periods. 
"(2) For purposes of this section the term 'period of eligibility' 
means, with respect to any employee for the benefit year beginning 
July 1,1983, the period beginning with the later o
f
— 
"(A) the first day of unemployment following the day on 
which he exhausted his rights to unemployment benefits (as 
determined under subsection (b)) in such benefit year; or 
"(B) the date of the enactment of the Supplemental Appropri-
ations Act, 1984, 
and consisting of five consecutive registration periods; except that 
no such period of eligibility shall include any registration period 
beginning after June 30,1984.". 
(b) The amendments made by this section shall apply with respect 
to days of unemployment during any registration period beginning 
on or after the date of the enactment of this Act. 
(c) Amounts appropriated under section 102(b) of Public Law 98-8 
shall remain available without regard to fiscal year limitation for 
purposes of canying out the amendments made by this section, and 
amounts appropriated under such section into the railroad unem-
plo3nnent insurance account in the Unemployment Trust Fund may 
be transferred into the railroad unemployment insurance adminis-
tration account in the Unemployment Trust Fund as may be neces-
sary to carry out the amendments made by this section (as 
determined by the Railroad Retirement Board). 
SEC. 2006. The first paragraph under the heading "Community 
development grants" in the Department of Housing and Urban 
Development-Independent Agencies Appropriation Act, 1984 (Public 
Law 98-45) is hereby amended by striking out the period at the end 
thereof, and inserting the following: ": Provided further, That any 
unit of general local government which was classified as an urban 
PUBLIC LAW 98-181—NOV. 30, 1983 
97 STAT. 1299 
county in fiscal year 1983 pursuant to section 102(aX6) of the Hous-
ing and Community Development Act of 1974, as amended, shall 
Ante, p. 1160. 
continue to be classified as an urban county for the purposes of the 
allocation of funds provided therein for fiscal year 1984.". 
This Act may be cited as the "Supplemental Appropriations Act, 
Short title. 
1984". 
Approved November 30, 1983. 
LEGISLATIVE HISTORY—H.R. 3959 (H.R. 1) (H.R. 2957) (S. 695) (S. 869) (S. 1310): 
HOUSE REPORTS: No. 98-123 and Pt. 2 accompanying H.R. 1, No. 98-175 accompa-
nying H.R. 2957 all from (Comm. on Banking, Finance and Urban 
Affairs), No. 98-375 (Comm. on Appropriations) and No. 98-551 
(Comm. of Conference) both accompanying H.R. 3959. 
SENATE REPORTS: No. 98-35 accompanying S. 695, No. 98-127 accompanying S. 
1310, No. 98-183 accompanying S. 869 all from (Comm. on 
Foreign Relations), No. 98-111 accompanying S. 869, No. 98-122 
accompanying S. 695 both from (Comm. on Banking, Housing, 
and Urban Affairs), and No. 98-275 accompanying H.R. 3959 
(Comm. on Appropriations). 
CONGRESSIONAL RECORD, Vol. 129 (1983): 
June 7, 8, S. 695 considered and passed Senate. 
July 11-13, H.R. 1 considered and passed House. 
July 25, 26, 29, Aug. 3, H.R. 2957 considered and passed House; passage vacated 
and S. 695, amended, passed in lieu. 
Sept. 23, S. 869 considered and passed Senate. 
Oct. 5, H.R. 3959 considered and passed House. 
Oct. 25-27, considered and passed Senate, amended. 
Nov. 16, House agreed to conference report; concurred in certain Senate 
amendments and in others with amendments. 
Nov. 17, Senate agreed to conference report; concurred in House amendments 
and in another with an amendment. 
Nov. 18, House concurred in Senate amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 19, No. 48 (1983): 
Nov. 30, Presidential statement.