An Act to amend and extend laws relating to housing and community development.
PL 94-375 (S.3295), enacted 08/03/1976

PUBLIC LAW 94-375—AUG. 3, 1976 
90 STAT. 1067 
Public Law 94-375 
94th Congress 
An Act 
To amend and extend laws relating to housing and community development. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SHORT TITLE 
SECTION 1. This Act may be cited as the "Housing Authorization 
Act of 1976". 
Aug. 3, 1976 
[S. 3295] 
Housing 
Authorization Act 
of 1976. 
12 u s e 1701 
note. 
AMENDMENTS TO THE UNITED STATES HOUSING ACT OF 1937 
SEC. 2. (a) Section 5(c) of the United States Housing Act of 1937 
is amended— 
(1) by striking out the first sentence and inserting in lieu 
thereof the following new sentence: "The Secretary is authorized 
to enter into contracts for annual contributions aggregating not 
more than $1,524,000,000 per annum, which limit shall be increased 
by $965,000,000 on July 1, 1974, by $662,300,000 on July 1, 1975, 
and by $850,000,000 on October 1,1976, except that the additional 
authority to enter into contracts for annual contributions pro-
vided on or after July 1, 1975, shall be effective only in such 
amounts as may be approved in appropriation Acts."; and 
(2) by inserting immediately after "on July 1, 1975," in the 
fourth sentence thereof the following: "and by not less than 
$17,000,000 per annum on October 1,1976,". 
(b) (1) Effective on October 1, 1976, the second and third sentences 
of section 5(c) of such Act are amended to read as follows: "Of the 
additional authority to enter into contracts for annual contributions 
provided on October 1, 1976, and approved in appropriation Acts, the 
Secretary shall (A) make available at least $60,000,000 for the 
modernization of low-income housing projects, and (B) make avail-
able at least $140,000,000 to assist in financing low-income housing 
projects for ownership by public housing agencies other than under 
section 8, of which not less than $100,000,000 shall be available only 
for the purpose of financing the construction or substantial rehabilita-
tion of low-income housing projects. The Secretary, in utilizing the 
additional authority to enter into contracts for annual contributions 
provided on October 1,1976, shall administer the programs authorized 
by this Act to provide assistance for new, substantially rehabilitated, 
and existing units, to the maximum extent practicable and consistent 
with section 213(d) of the Housing and Community Development Act 
of 1974, in accordance with the goals of units of general local govern-
ment for such types of housing as reflected in their housing assistance 
plans prepared pursuant to section 104(a) (4) of such Act.". 
(2) Effective on October 1,1976, the fourth sentence of section 5(c) 
of such Act is amended by striking out "to the amount of contracts 
for annual contributions required to be entered into by the Secretary 
under the second sentence of this subsection". 
Low-income 
housing projects, 
contracts for 
annual 
contributions. 
42 u s e 1437c. 
New and 
rehabilitated 
housing units. 
42 u s e 1439. 
42 u s e 5304. 
42 u s e 1437c. 
90 STAT. 1068 
PUBLIC LAW 94-375—AUG. 3, 1976 
Appropriation 
authorization. 
42 use 1437g. 
42 use 1437f. 
12 use 1701 and 
note, 1715Z-9. 
42 use 1437f. 
"Debt service." 
42 use 1437a. 
42 use 1437f. 
42 use 1382 
note. 
42 use 1430. 
12 use 1701 and 
note. 
12 use 17018. 
42 use 1471. 
42 use 1381. 
(c) Section 9 (c) of such Act is amended to read as follows: 
"(c) There are authorized to be appropriated, for the purpose of 
providing annual contributions pursuant to this section not to exceed 
$535,000,000 on or after July 1, 1975, not to exceed $80,000,000 on or 
after July 1,1976, and not to exceed $576,000,000 on or after October 1, 
1976.". 
(d) Section 8(c)(4) of such Act is amended by striking out the 
period at the end thereof and inserting in lieu thereof the following: 
", and, subject to the provisions of the following sentence, such pay-
ments may be made, in the case of a newly constructed or substantially 
rehabilitated project, after such sixty-day period in an amount equal 
to the debt service attributable to such an unoccupied dwelling unit 
for a period not to exceed one year, if a good faith effort is being made 
to fill the unit and the unit provides decent, safe, and sanitary housing. 
No such payment may be made after such sixty-day period (i) if the 
unoccupied unit is in a project insured under the National Housing 
Act, except pursuant to section 244 of such Act, or (ii) if the Secretary 
determines that the dwelling unit is in a project which provides the 
owner with revenues exceeding the costs incurred by such owner with 
respect to such project.". 
(e) Section 8(f) of such Act is amended by striking out "and" at 
the end of paragraph (4), by striking out the period at the end of 
paragraph (5) and inserting in lieu thereof "; and", and by adding 
the following new paragraph at the end thereof: 
"(6) the term 'debt service' means the required payments for 
principal and interest made with respect to a mortgage secured 
by housing assisted under this Act.". 
(f) The third sentence of section 3(2) of such Act is amended by 
striking out the word "and" before "(C)" and inserting before the 
semicolon the following: "and (D) other single persons in circum-
stances described in regulations of the Secretary: Provided^ That in 
no event shall more than 10 percent of the units under the jurisdiction 
of any public housing agency be occupied by single persons under this 
Vilause |(D) : Provided further^ That in determining priority for 
admission to housing under this Act the Secretary shall give preference 
to those single persons who are elderly, handicapped, or displaced 
before those eligible under this clause (D)". 
(g) Section 8(e)(1) of such Act is amended by inserting after 
"State or local agency" the following: "or the Farmers' Home 
Administration". 
(h) Notwithstanding any other provision of law, the value of any 
assistance paid with respect to a dwelling unit under the United States 
Housing Act of 1937, the National Housing Act, section 101 of the 
Housing and Urban Development Act of 1965, or title V of the 
Housing Act of 1949 may not be considered as income or a resource 
for the purpose of determining the eligibility of, or the amount of 
the benefits payable to, any person living in such unit for assistance 
under title XVI of the Social Security Act. This subsection shall 
become effective on October 1, 1976. 
Mortgage 
insurance, 
termination. 
12 use 1715z. 
SECTION 2 35 HOMEOWNERSHIP PROGRAM 
SEC. 3. (a) Section 235 (m) of the National Housing Act is amended 
by striking out "June 30,1976" and inserting in lieu thereof "Septem-
ber 30, 1977". 
PUBLIC LAW 94-375—AUG. 3, 1976 
90 STAT. 1069 
Mortgage 
insurance, 
* 
eligibility. 
12 use 1715/. 
12 use 1715z. 
Mobile homes, 
mortgage 
assistance 
payments. 
(b) The last proviso in section 235(b) (2) of such Act is amended 12 USe 1715z. 
by striking out "$21,600", "$25,200", "$25,200", and "$28,800" and 
inserting in lieu thereof "$25,000", "$29,000", "$29,000", and "$33,000", 
respectively. 
(c) Section 235(i) (3) (B) of such Act is amended by striking out 
;r r ' 
"$21,600", "$25,200", "$25,200", and "$28,800" and inserting in lieu 
thereof "$25,000", "$29,000", "$29,000", and "$33,000", respectively. 
(d) Section 221(d)(2)(A) of such Act is amended— 
(1) by striking out "$21,600" and "$25,200" in the matter 
preceding the first proviso and inserting in lieu thereof "$25,000" 
and "$29,000", respectively; and 
(2) by striking out "$25,200" and "$28,800" in the second 
proviso and inserting in lieu thereof "$29,000" and "$33,000", 
respectively. 
(e) Section 235(h) (2) of such Act is amended by striking out "80 
per centum" wherever it appears and inserting in lieu thereof "95 
per centum". 
(f)(1) Section 235 (a) of such Act is amended— 
( A) by inserting " (1)" immediately after " (a)"; and 
(B) by adding at the end thereof the following: 
"(2) (A) Notwithstanding any other provision of this section, the 
Secretary is authorized to make periodic assistance payments under 
this section on behalf of families whose incomes do not exceed the 
maximum income limits prescribed pursuant to subsection (h) (2) 
of this section for the purpose of assisting such families in acquiring 
ownership of a mobile home consisting of two or more modules and 
a lot on which such mobile home is or will be situated, except that 
periodic assistance payments pursuant to this paragraph shall not be 
made with respect to more than 20 per centum of the total number of 
units with respect to which assistance is approved under this section 
after January 1,1976. Assistance payments under this section pursuant 
to this paragraph shall be accomplished through payments on behalf 
of an owner of lower-income of a mobile home as described in the 
preceding sentence to the financial institution which makes the loan, 
advance of credit, or purchase of an obligation representing the loan 
or advance of credit to finance the purchase of the mobile home and 
the lot on which such mobile home is or will be situated, but only if 
insurance under section 2 of this Act covering such loan, advance of 12 USC 1703. 
credit, or obligation has been granted to such institution. 
"(B) Notwithstanding the provisions of subsection (c) of this sec-
tion, assistance payments provided pursuant to this paragraph shall 
be in an amount not exceeding the lesser of— 
"(i) the balance of the monthly payment for principal, interest, 
real and peisonal property taxes, insurance, and insurance pre-
mium chargeable under section 2 of this Act due under the loan 
or advance of credit remaining unpaid after applying 20 per 
centum of the mobile homeowner's income; or 
"(ii) the difference between the amount of the monthly pay-
ment for principal, interest, and insurance premium chargeable 
under section 2 of th's Act which the mobile homeowner is obli-
gated to pay under the loan or advance of credit and the monthly 
payment of principal and interest which the owner would be 
obligated to pay if the loan or advance of credit were to bear 
interest at a I'ate derived by subtracting from the interest rate 
applicable to such loan or advance of credit the interest rate dif-
ferential between the maximum interest rate plus mortgage insur-
ance premium applicable to mortgages insured under subsection 
90 STAT. 1070 
PUBLIC LAW 94-375—AUG. 3, 1976 
--•: 
'• " J
= • 
(i) of this section at the time such loan or advance of credit is 
made and the interest rate which such mortgages are presumed, 
under regulations prescribed by the Secretary, to bear for pur-
poses of subsection (c) (2) of this section." 
12 use 1715z. 
(2) Section 235(e) of such Act is amended by inserting "(a) (2) 
(B)," immediately before " (c)". 
SECTION 236 AMENDMENTS 
12 use 1715z-l. 
SEC. 4. (a) Section 236(n) of the National Housing Act is amended 
by striking out "June 30,1976" and inserting in lieu thereof "Septem-
ber 30,1977". 
(b) Section 236(f) (2) of such Act is amended— 
(1) by inserting "(including the amount allowed for utilities 
; .''v 
vf 
in the case of a project with separate utility metering)" imme-
diately after "basic rentals" in the first sentence thereof and by 
striking out everything in such sentence which follows "of their 
income" and inserting in lieu thereof a period; and 
(2) by inserting "(including the amount allowed for utilities 
in the case of a project with separate utility metering)" imme-
- rt ?
i 
diately after "rental payment" in the second sentence thereof and 
by striking out everything in such sentence which follows "ten-
ant's income" and inserting in lieu thereof a period. 
EHA SUPPLEMENTAL LOANS FOR HOSPITALS 
12 use 1715z-6. 
SEC. 5. Section 241(a) 
of the National 
Housing Act 
is 
amended— 
(1) by inserting ", hospital," immediately after "multifamily 
project" in the first sentence thereof; 
(2) by inserting ", hospital," immediately after "such project" 
in the material preceding the proviso in the second sentence there-
of; and 
(3) by inserting ", hospital," immediately before "or a group 
practice facility" and immediately before "or facility" in the 
proviso in the second sentence thereof. 
CO-INSURANCE 
12 use 1715z-9. 
SEC. 6. (a) Section 244 of the National Housing Act is amended by 
inserting at the end thereof the following new subsection: 
Multifamily 
"(^)(1) Where the mortgagee is a public housing agency or an 
housing projects, 
insured depository institution and the mortgage covers a multifamily 
housing project, the co-insurance contract may provide that the mort-
gagee assume (i) the full amount of any loss on the insured mortgage 
up to an amount equal to a fixed percentage of the outstanding prin-
cipal balance of the mortgage at the time of claim for insurance 
benefits, or (ii) the full amount of any losses on insured mortgages in 
a portfolio of mortgages approved by the Secretary up to an amount 
equal to a fixed percentage of the outstanding principal balance of all 
mortgages in such portfolio at the time of claim for insurance benefits 
on a mortgage in the portfolio, plus a share of any loss in excess of the 
amount under clause (i) or (ii), whichever is applicable. 
" (2) The second sentence of subsection (d) shall not apply to mort-
gages made to public housing agencies, but for purposes of such second 
sentence such mortgages shall not be counted in the aggregate prin-
cipal amount of all mortgages insured under this title. 
PUBLIC LAW 94-375—AUG. 3, 1976 
90 STAT. 1071 
"(3) The Secretary may make loans, from the applicable insurance 
fund, to public housing agencies in connection with mortgages which 
have been insured pursuant to this subsection and which are in default. 
" (4) The Secretary may insure and make a commitment to insure 
in connection with a co-insurance contract pursuant to this subsection 
(A) a mortgage on a project assisted under the second proviso in the 
first sentence of section 236(b) of this Act, and (B) a mortgage or 
advance on a mortgage made to a public housing agency on a project 
under construction which is not approved for insurance prior to 
construction. 
"(5) As used in this subsection, the term 'public housing agency' has 
the same meaning as in section 3(6) of the United States Housing Act 
of 1937, and the term 'insured depository institution' means any sav-
ings bank, savings and loan association, commercial bank or other such 
depository institution whose deposits are insured by the Federal 
Deposit Insurance Corporation, by the Federal Savings and Loan 
Insurance Corporation, or by an agency or instrumentality of a State. 
"(6) Notwithstanding any other provision of this Act, the Secre-
tary may include in the determination of replacement cost of a project 
to be covered by a mortgage made to a public housing agency and 
insured pursuant to this subsection, such reserves and development 
costs, not to exceed 5 per centum of the amount otherwise allowable, 
as may be established or authorized by the public housing agency 
consistent with such agency's procedures and underwriting standards.". 
(b) Section 244(a) of such Act is amended by adding the folloAving 
new sentence at the end thereof: "A mortgagee which enters into a con-
tract of co-insurance under this section shall not by reason of such 
contract, or its adherence to such contract or applicable regulations of 
the Secretary, including provisions relating to the retention of risks in 
the event of sale or assignment of a mortgage, be made subject to any 
State law regulating the business of insurance.". 
12 u s e 1715Z-1. 
"Public housing 
agency." 
42 u s e 1437a. 
"Insured 
depository 
institution." 
12 u s e 1715Z-9. 
EXPERIMENTAL FINANCING 
SEC. 7. Section 245 of the National Housing Act is amended by strik-
ing out "June 30, 1976" and inserting in lieu thereof "September 30, 
1977". 
MULTIFAMILY MORTGAGE LIMITS 
12 use 
1715Z-10. 
SEC. 8. (a) The National Housing Act is amended by striking out 
"by not to exceed 75 per centum in any geographical area" where it 
appears in sections 207(c)(3), 213(b)(2), 220(d) (3) (B) (iii), 221 
(d) (3) (ii), 221(d) (4) (ii), 231(c) (2), and 234(e) (3) and inserting 12 USe 1713, 
in lieu thereof in each such section "by not to exceed 50 per centum in 1715e, 1715k, 
any geographical area". 
1715/, 1715v, 
(b)(1)(A) Section 207(c)(3) of the National Housing Act is 1715y. 
amended by striking out "$13,000", "$18,000", "$21,500", "$26,500", 
"$30,000", and "$3,250" in the matter preceding the first semicolon 
. . 
and inserting in lieu thereof "$19,500", "$21,600", "$25,800", "$31,800", 
"$36,000", and "$3,900", respectively. _ 
' 
' ' 
(B) Section 207(c) (3) of such Act is further amended by striking 
out "$15,000", "$21,000", "$25,750", "$32,250", and "$36,465" in the 
matter following the first semicolon and inserting in lieu thereof 
"$22,500", "$25,200", "$30,900", "$38,700", and "$43,758", respectively. 
(2) (A) Section 213(b) (2) of such Act is amended by striking out 12 USC 1715e. 
"$13,000", "$18,000", "$21,500", /'$26,500';, and "$30,000" in the 
matter preceding the first proviso and inserting in lieu thereof 
"$19,500", "$21,600", "$25,800", "$31,800", and "$36,000", respectively. 
89-194 O—78—pt. 1 
71 
90 STAT. 1072 
PUBLIC LAW 94-375—AUG. 3, 1976 
12 use 1715e. 
12 use 1715k. 
12 use 1715/. 
12 use 1715v. 
12 use 1715y. 
(B) Section 213(b) (2) of such Act is further amended by striking 
out "$15,000", "$21,000'-, "$25_,750'', "$32,250", and "$36,465" in the 
first proviso and inserting in lieu thereof "$22,500", "$25,200", 
"$30,900", "$38,700", and "$43,758", respectively. 
(3) (A) Section 220(d) (3) (B) (iii) of such Act is amended by 
striking out "$13,000", "$18,000", "$21,500", "$26,500", and "$30,000" 
in the matter preceding "except" where it first appears and inserting 
in lieu thereof "$19,500", "$21,600", "$25,800", "$31,800'", and "$36,000", 
respectively. 
(B) Section 220(d) (3) (B) (iii) of such Act is further amended by 
striking out "$15,000", "$21,000", "$25,750", "$32,250", and "$36,465" 
in the matter following "except" where it first appears and inserting 
in lieu thereof "$22,500", "$25,200", "$30,900", "$38,700", and "$43,758", 
respectively. 
(4) Section 221(d) (3) (ii) of such Act is amended— 
(A) by striking out "$11,240", "$15,540", "$18,630", "$23,460", 
and "$26,570" and inserting in lieu thereof "$16,860", "$18,648", 
"$22,356", "$28,152", and "$31,884", respectively; and 
(B) by striking out "$13,120", "$18,630", "$22,080", "$27,600", 
and "$32,000" and inserting in lieu thereof "$19,680", "$22,356", 
"$26,496", "$33,120", and "$38,400", respectively. 
(5) (A) Section 221(d) (4) (ii) of such Act is amended bv striking 
out "$12,300", "$17,188", "$20,525", "$24,700", and "$29,038" in the 
matter preceding the first semicolon and inserting in lieu thereof 
"$18,450", "$20,625", "$24,630", "$29,640", and "$34,846", respectively. 
(B) Section 221 (d) (4) (ii) of such Act is further amended by strik-
ing out "$13,975", "$20,025", "$24,350", "$31,500", and "$34,578'' in the 
matter following the first semicolon and inserting in lieu thereof 
'•$20,962", "$24,030", "$29,220", "$37,800", and "$41,494", respectively. 
(6) (A) Section 231(c) (2) of such Act is amended by striking out 
"$12,300", "$17,188", "$20,525", "$24,700'', and "$29,038" in the matter 
preceding the first semicolon and inserting in lieu thereof "$18,450", 
"$20,625", "$24,630", "$29,640", and "$34,846", respectively. 
(B) Section 231(c) (2) of such Act is further amended by striking 
out "$13,975",_ "$20,025", "$24,350", "$31,500", and "$34,578" in the 
matter following the first semicolon and inserting in lieu thereof 
"$20,962", "$24,030", "$29,220", "$37,800", and "$41,494", respectively. 
(7) (A) Section 234(c) (3) of such Act is amended by striking out 
"$13,000", "$18,000", "$21,500", "$26,500", and "$30,000" in the matter 
preceding the first semicolon and inserting in lieu thereof "$19,500", 
"$21,600", "$25,800", "$31,800", and "$36,000", respectively. 
(B) Section 234(e) (3) of such Act is further amended by striking 
out "$15,000", "$21,000", "$25,750", "$32,250", and "$36,465" in the 
matter following the first semicolon and inserting in lieu thereof 
"$22,500", "$25,200", "$30,900", "$38,700", and "$43,768", respectively. 
CORRECTION OF DEFECTS 
12 use 1735b. 
SEC. 9. (a)(1) Section 518(b) of the National Housing Act is 
amended by striking out "not more than nineteen months after the 
date of enactment of the Housing and Community Development Act 
of 1974" in the first sentence thereof and inserting in lieu thereof "not 
more than four months after the date of enactment of the Housing 
. , 
Authorization Act of 1976". 
PUBLIC LAW 94-375—AUG. 3, 1976 
90 STAT. 1073 
(2) Section 518(b) of such Act is amended by striking out the last 
sentence and inserting in lieu thereof the following: "Expenditures 
pursuant to this subsection shall be made from the insurance fund 
chargeable for insurance benefits on the mortgage covering the struc-
ture to which the expenditures relate. There are hereby authorized to 
be appropriated such sums as may be necessary to cover the costs of 
such expenditures not otherwise provided for.". 
(b) Section 518 of the National Housing Act is amended by adding 
at the end thereof the following new subsections: 
"(d) The Secretary is authorized to make expenditures to correct or 
to reimburse the owner for the correction of structural or other major 
defects which so seriously affect use and liveability as to create a serious 
danger to the life or safety of inhabitants of any one-, two-, three-, 
or four-family dwelling which is more than one year old on the date 
of issuance of the insurance commitment, is located in an older, declin-
ing urban area, and is covered by a mortgage insured under section 
203 or 221 on or after January 1,1973, but prior to the date of enact-
ment of this subsection if (1) the owner requests assistance from the 
Secretary not more than one year after the date of enactment of this 
subsection, and (2) the defect is one that existed on the date of the 
issuance of the insurance commitment and is one that a proper inspec-
tion could reasonably have been expected to have disclosed. The Secre-
tary may require from the seller of any such dwelling an agreement to 
reimburse him for any payments made pursuant to this subsection 
with respect to such dwelling. Expenditures pursuant to this subsection 
shall be made from the insurance fund chargeable for insurance bene-
fits on the mortgage covering the structure to which the expenditures 
relate. There are hereby authorized to be appropriated such sums as 
may be necessary to cover the costs of such expenditures not otherwise 
provided for. 
"(e) The Secretary of Housing and Urban Development is author-
ized and directed to conduct a full and complete investigation and 
study and report to Congress, with recommendations, not later than 
March 1, 1977, with respect to an effective program for protecting 
home buyers from hidden or undisclosed defects seriously affecting 
the use and livability of the home, which would be applicable to exist-
ing homes financed with mortgages insured under this Act. In the 
study and report the Secretary shall particularly investigate the need 
for, cost and feasible structure of, a national home inspection and 
warranty program, with respect to such homes, to be operated by the 
Federal Government out of fees assessed on the home buyer and 
amortized over a period of two years. The Secretary's report shall also 
present an analysis of alternative Federal programs to meet these 
needs, and the cost and means of financing such programs. In the 
report the Secretary shall also outline administrative steps which can 
be taken to provide disclosure to purchasers of existing homes financed 
with mortgages insured under this Act of the actual condition of the 
home and the types of repairs or replacements likely to be needed 
within a period of two years, such as repairs or replacement of fur-
nace, roof or major appliances, based on age and useful life expectancy 
of such appurtenances.". 
12 use 1735b. 
jropnation 
authorization. 
Corrected 
defects, 
expenditures. 
12 u s e 1709, 
1715/. 
Appropriation 
authorization. 
Investigation and 
study; report to 
Congress. 
GENERAL INSURANCE FUND AUTHORIZATION 
SEC. 10. Section 519 of the National Housing Act is amended by 12 USC 1735c. 
adding at the end thereof the following new subsection: 
"(f) There are authorized to be appropriated to cover losses sus-
tained by the General Insurance Fund not to exceed $500,000,000.". 
Appropriation 
authorization. 
90 STAT. 1074 
PUBLIC LAW 94-375—AUG. 3, 1976 
"Elderly or 
handicapped 
families." 
rftf. 
'Vi< s , 
4,^r „ 1* i 
HOUSING FOR THE ELDERLT 
12 use 1701q. 
SEC. 11. (a) Section 202(a) (4) (B) (i) of the Housing Act of 1959 
is amended— 
^; 
(1) by striking out "$800,000,000" in the first sentence and 
inserting in lieu thereof "$1,475,000,000, which amount shall be 
increased to $2,387,500,000 on October 1,1977, and to $3,300,000,000 
on October 1, 1978"; and 
(2) by inserting the following new sentence at the end thereof: 
., 
,^, 
"The Secretary may not issue notes or other obligations to the 
Secretary of the Treasury pursuant to this section in an aggre-
. u 
gate amount exceeding $800,000,000 except as approved in appro-
priation Acts.". 
(b) Section 202(d) (4) of such Act is amended by adding the fol-
lowing new sentence at the end thereof: "Notwithstanding the preced-
ing provisions of this paragraph, the term 'elderly or handicapped 
families' includes two or more elderly or handicapped persons living 
together, one or more such persons living with another person who is 
determined (under regulations prescribed by the Secretary) to be 
essential to their care or well-being, and the surviving member or mem-
bers of any family described in the first sentence of this paragraph who 
were living, in a unit assisted under this section, with the deceased 
member of the family at the time of his or her death.". 
(c) (1) Section 202(a) (8) of such Act is amended by striking out 
"current average market yield on outstanding marketable obligations 
of the United States with remaining periods to maturity comparable 
to the average maturities of such loans" and inserting in lieu thereof 
the following: "average interest rate on all interest bearing obliga-
tions of the United States then forming a part of the public debt, 
computed at the end of the fiscal year next preceding the date on which 
i,nt. 
the loan is made". 
0 
(2) The second sentence of section 202(a) (4) (B) (i) of such Act is 
amended by striking out "the current average market yield on out-
standing marketable obligations of the United States of comparable 
maturities during the month preceding the issuance of the notes or 
other obligations", and inserting in lieu thereof the following: "the 
average interest rate on all interest bearing obligations of the United 
States then forming a part of the public debt, computed at the end of 
the fiscal year next preceding the date on which the loan is made". 
REHABILITATION LOAN PROGRAM 
42 use 1452b. 
SEC. 12. (a) Section 312(d) of the Housing Act of 1964 is amended— 
(1) by striking out "and not to exceed $100,000,000 for the fiscal 
year beginning on July 1,1975" and inserting in lieu thereof "not 
to exceed $100,000,000 for the fiscal year beginning on July 1,1975, 
and not to exceed $100,000,000 for the fiscal year beginning on 
October 1,1976"; and 
(2) by adding at the end thereof the following new sentence: 
"The amount of commitments to make loans pursuant to this sec-
tion entered into after August 22, 1976, shall not exceed amounts 
approved in appropriation Acts.". 
(b) Section 312(h) of such Act is amended to read as follows: 
Termination date. 
"(h) No loan shall be made under this section after September 30, 
1977, except pursuant to a contract, commitment, or other obligation 
entered into pursuant to this section prior to October 1, 1977.". 
PUBLIC LAW 94-375—AUG. 3, 1976 
90 STAT. 1075 
EMERGENCY HOUSING 
SEC. 13. (a) Section 109(b) of the Emergency Homeowners' Relief 
Act is amended by striking out "June 30, 1976" and inserting in lieu 
thereof "September 30,1977". 
(b) The first sentence of section 110(a) of such Act is amended— 
(1) by striking out "Until one year from the date of enactment 
of this title, each" and inserting in lieu thereof "Each"; 
(2) by inserting "prior to October 1, 1977," immediately after 
"(1)"; and 
(3) by inserting "until one year from the date of enactment 
of this title," immediately after "(2)". 
(c) Section 111 of such Act is amended by striking out "July 1, 
1976" and inserting in lieu thereof "October 1, 1977". 
(d) Section 3(b) of the Emergency Home Purchase Assistance Act 
of 1974 is amended by striking out "July 1, 1976" and inserting in 
lieu thereof "October 1,1977". 
(e^ (1) Section 313(b) of the National Housing Act is amended by 
striking out the period at the end thereof and inserting in lieu thereof 
"; and", and by inserting the following at the end thereof: 
"(D) such mortgage involves a principal residence the sales 
price of which does not exceed $48,000 ($52,000 in high-cost areas 
as determined by the Secretary) per family residence or dwelling 
unit, except that such sales price in Alaska, Hawaii, and Guam 
may not exceed $65,000.". 
(2) The amendment made by paragraph (1) shall apply only with 
respect to mortgages purchased pursuant to commitments made after 
the date of the enactment of this Act. 
12 use 2708. 
12 use 2709. 
12 use 2710. 
12 use 1723e 
note. 
12 use 1723e. 
12 use 1723e 
note. 
FLOOD INSURANCE 
SEC. 14. (a) Section 202 (b) of the Flood Disaster Protection Act of 
1973 is amended by striking out all that follows "shall not apply to" 42 USe 4106. 
and inserting in lieu thereof the following: "(1) any loan made to 
finance the acquisition of a residential dwelling occupied as a residence 
prior to March 1,1976, or one year following identification of the area 
Avithin which such dwelling is located as an area containing special 
flood hazards, whichever is later, or made to extend, renew, or increase 
the financing or refinancing in connection with such a dwelling, (2) 
any loan, which does not exceed an amount prescribed by the Secretary, 
to finance the acquisition of a building or structure completed and 
occupied by a small business concern, as defined by the Secretary, prior 
to January 1, 1976, (3) any loan or loans, which in the aggregate do 
not exceed $5,000, to finance improvements to or rehabilitation of a 
building or structure occupied as a residence prior to January 1,1976, 
or (4) any loan or loans, which in the aggregate do not exceed an 
amount prescribed by the Secretary, to finance nonresidential addi- 
\ 
tions or improvements to be used solely for agricultural purposes on 
a farm.". 
(b) Section 1336(a) of the National Flood Insurance Act of 1968 42 USC 4056. 
is amended by striking out "December 31, 1976" and inserting in lieu 
thereof "September 30 1977". 
(c) Section 1376 of the National Flood Insurance Act of 1968 is 42 USe 4127. 
amended by adding at the end thereof the following new subsection: 
"(c) There are authorized to be appropriated for studies under this Appropriation 
title not to exceed $100,000,000 for the fiscal year 1977.". 
authorization. 
90 STAT. 1076 
PUBLIC LAW 94-375—AUG. 3, 1976 
Appropriation 
authorization. 
42 use 5303. 
42 use 5305. 
Discretionary 
fund. 
42 
use 
5307. 
12 
use 
1749aa. 
42 
use 
4501. 
42 
use 
5316. 
Transition 
provisions. 
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM 
SEC. 15. (a) Section 103(a)(2) of the Housing and Community 
Development Act of 1974 is amended by inserting ", and $200,000,000 
for the fiscal year 1977, not more than 50 per centum of which amount 
may be used under section 106(d) (1)," immediately after "1976". 
(b) Paragraph (2) of section 105(a) of such Act is amended by 
inserting immediately after "neighborhood facilities," the following: 
"centers for the handicapped,". 
(c) Section 107(a)(1) of such Act is amended by inserting the 
following immediately before the semicolon at the end thereof: "or in 
behalf of new community projects assisted under title X of the National 
Housing Act which meet the eligibility standards set forth in title VII 
of the Housing and Urban Development Act of 1970 and which were 
the subject of an application or preapplication under such title prior 
to January 14,1975". 
(d) Section 116 of such Act is amended by adding at the end thereof 
the following new subsection: 
"(h) In the event that the total amount available for distribution in 
fiscal year 1977 in metropolitan areas is insufficient to meet all basic 
grant and hold-harmless entitlement needs, as provided by section 
106(a), and funds are not otherwise appropriated to meet such 
deficiency, the Secretary shall meet the deficiency, first, from amounts 
available for use under section 107 and, if such amounts are exhausted, 
through a ratable reduction of all entitlements under section 106(a).". 
: ' 
COMPREHENSIVE 
PLANNING 
SEC. 16. (a) The first sentence of section 701(e) of the Housing Act 
40 use 461. 
of 1954 is amended by striking out "and not to exceed $150,000,000 
for the fiscal year 1976" and inserting in lieu threof "not to exceed 
$150,000,000 for the fiscal year 1976, and not to exceed $100,000,000 
for the fiscal year 1977". 
40 use 461 note. 
(b) No eligible recipient under section 701 of the Housing Act of 
1954 may be excluded from qualifying for funds under such section 
solely on the basis of participation or nonparticipation under such 
section prior to fiscal year 1977. 
CONFIRMATION OF GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 
PRESIDENT 
SEC. 17. (a) The National Housing Act is amended by striking out 
12 use 1723. 
the third sentence of section 308(a) and inserting in lieu thereof the 
following: "There is hereby established in the Department of Housing 
and Urban Development the position of President, Government 
National Mortgage Association, who shall be appointed by the Presi-
dent, by and with the advice and consent of the Senate. The Secretary 
shall select and effect the appointment of qualified persons to fill the 
offices of vice president,, and such other offices as may be provided for 
in the bylaws. Persons appointed under the preceding sentence shall 
perform such executive functions, powers, and duties as may be pre-
scribed by the bylaws or by the Secretary, and such persons shall be 
; 
executive officers of the Association and shall discharge all such execu-
tive functions, powers, and duties.". 
12 use 1723a. 
(b) Section 309 (d) of such Act is amended by striking out the word 
"The" immediately preceding "Secretary" in the first sentence and 
inserting in lieu thereof "Subject to the provisions of section 308(a), 
the". 
PUBLIC LAW 94-375—AUG. 3, 1976 
90 STAT. 1077 
(c) Section 5315 of title 5, United States Code, is amended by add-
ing at the ending thereof the following new paragraph: 
"(108) President, Government National Mortgage Association, 
Department of Housing and Urban Development.". 
(d) Section 7(c) of the Department of Housing and Urban 
Development Act is amended by striking out "seven" in the proviso and 42 USC 3535 
substituting in lieu thereof "six". 
(e) Notwithstanding the amendment made by subsection (a), the 
rights, powers, and duties of the position of President, Government 
National Mortgage Association, as in effect on the day preceding the 
date of enactment of this Act shall remain in effect until the position 
established hereunder has been filled in accordance with the terms 
of this Act. 
SPECIAL ASSISTANT FOR COOPERATIVE HOUSING 
12 USC 1723 
note. 
SEC. 18. The first sentence of section 102(h) of the Housing Amend-
ments of 1955 is amended— 
(1) by inserting after "section 221(d)(3)" a comma and the 
following: "section 235, section 236, section 241, section 243, sec-
tion 246, and section 203 (n)"; 
(2) by inserting after "Housing and Urban Development Act 
of 1965" the following: "or section 8 of the United State Hous-
ing Act of 1937"; and 
(3) by inserting before the period the following: "and Assist-
ant Secretary for Housing Management". 
12 USC 1715e 
note. 
12 USC 1715z, 
1715Z-1, 
1715Z-6, 
1715Z-8, 
1715Z-11, 1709. 
42 USC 1408. 
NEW 
COMMUNITIES 
SEC. 19. Section 720 (a) of the Housing and Urban Development Act 
of 1970 is amended by striking out "June 30,1975" and inserting in lieu 42 USC 4521. 
thereof "October 1,1977". 
URBAN 
HOMESTEADING 
SEC. 20. Section 810(g) of the Housing and Community Develop-
ment Act of 1974 is amended by striking out "and not to exceed 12 USC 1706e. 
$5,000,000 for the fiscal year 1976" and inserting in lieu thereof "not 
to exceed $6,250,000 for the fiscal year 1976, and for the transition 
quarter, not to exceed $5,000,000 for fiscal year 1977, and not to exceed 
$5,000,000 for the fiscal year 1978". 
DAY CARE 
SEC. 21. Section 7 of the Department of Housing and Urban Devel-
opment Act is amended by adding at the end thereof the following 
new subsection: 
"(n) Notwithstanding any other provision of law, the Secretary is 
authorized by contract or otherwise to establish, equip and operate a 
day care center facility for the purpose of serving children who are 
members of households of employees of the Department. The Secretary 
is authorized to establish or provide for the establishment of appropri-
ate fees and charges to be chargeable against the Department of 
Housing and Urban Development employees or others who are bene-
ficiaries of services provided by such a day care center.". 
42 USC 3535. ' 
HUD employees, 
day care center. 
90 STAT. 1078 
PUBLIC LAW 94-375—AUG. 3, 1976 
HOME OWNER'S LOAN 
ACT 
SEC. 22. The tM^elfth undesignated paragraph of section 5(c) of 
the Home Owner's Loan Act of 1933 (12 U.S.C. 1464(c)) is amended 
by adding in the first sentence, immediately after the words "made 
pursuant to either of such sections" and before the period the follow-
ing language: "and in the share capital and capital reserve of the 
Inter-American Savings and Loan Bank". 
Appropriation 
authorization. 
12 use 1701Z-1. 
12 use 1701Z-3. 
12 use 1701Z-2. 
RESEARCH 
AUTHORIZATION 
SEC. 23. (a) Section 501 of the Housing and Urban Development 
Act of 1970 is amended by striking out the second sentence and insert-
ing in lieu thereof the following: "There are authorized to be appro-
priated for activities under this title not to exceed $65,000,000 for the 
fiscal year 1977.". 
(b) Section 504(b) of such Act is amended by striking out the 
first, third, and fourth sentences. 
(c) Section 502(f) of such Act is amended by striking out the 
period at the end of the second sentence and inserting in lieu thereof 
the following: "and such departments and agencies are hereby author-
ized to execute such contracts and grants.". 
12 use 1701J-2. 
NATIONAL INSTITUTE or 
BUILDING 
SCIENCES 
SEC. 24. Section 809(h) of the Housing and Community Develop-
ment Act of 1974 is amended by inserting ", and $5,000,000 for each 
of the fiscal years 1977 and 1978" immediately after "fiscal year 1976". 
Interest rates. 
42 use 1490a. 
42 use 1490. 
42 use 1480. 
42 use 1490. 
12 use 1701Z-1. 
RURAL HOUSING 
SEC. 25. (a) Section 521(a)(1) of the Housing Act of 1949 is 
amended by striking out "rate determined annually by the Secretary 
of the Treasury" and inserting in lieu thereof "rate determined by 
the Secretary of the Treasury upon the request of the Secretary". 
(b) Section 620(3) (B) of such Act is amended by inserting "for 
lower and moderate-income families" immediately after "has a seri-
ous lack of mortgage credit". 
(c) Section 510 of such Act is amended by redesignating subsections 
(f) and (g) as subsections (h) and (i), respectively, and by insert-
ing the following new subsections immediately after subsection (e) : 
"(f) continue processing as expeditiously as possible applica-
tions on hand received prior to the time an area has been deter-
mined by the Secretary not to be 'rural' or a 'rural area', as those 
terms are defined in section 520, and make loans or grants to such 
applicants who are found to be eligible on the same basis as 
though the area were still rural; 
"(g) notwithstanding that an area ceases, or has ceased, to 
be 'rural', in a 'rural area', or an eligible area, make assistance 
under this title available in connection with transfers and assump-
tions of property securing any loan made, insured, or held by the 
Secretary or in connection with any property held by the Secre-
: 
tary under this title on the same basis as though the area were 
still rural;". 
COUNSELING 
SEC. 26. Title V of the Housing and Urban Development Act of 
1970 is amended by adding at the end thereof the following new 
section: 
PUBLIC LAW 94-375—AUG. 3, 1976 
90 STAT. 1079 
u 
COUNSELING TO MORTGAGORS 
"SEC. 508. (a) In carrying out activities under section 501, the 12 USC 1701z-7. 
Secretary is directed to undertake programs of studies and demon- 12 USC 1701z-l. 
strations within at least three standard metropolitan statistical areas 
to determine the extent of need for and cost effectiveness of providing 
. , 
pre-purchase, default and delinquency counseling and related services 
to owners and purchasers of single-family dwellings insured or to be 
insured under the unsubsidized mortgage insurance programs of the 
National Housing Act. 
12 USC 1701 
"(b) Within one year from enactment of this section, the Secretary ^
*
^
*
®
-
shall submit an interim report to the Congress with respect to the ^^P^"^ *
« 
progress made under such studies and demonstrations, including an 
ingress, 
estimate as to the date when a final report on the results of such 
demonstrations will be made available to the Congress.". 
Approved August 3, 1976. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 94-545 accompanying H.R. 9852 and No. 94-1091 and No. 
94-1091, pt. II, accompanying H.R. 12945 (Comm. on Banking, 
, 
Currency and Housing) and Nos. 94-1291 and 94-1304 (Comm. of 
Conference). 
SENATE REPORTS: No. 94-520 accompanying H.R. 9852 and No. 94-749 (Coram, on 
Banking, Housing and Urban Affairs). 
CONGRESSIONAL RECORD: 
Vol. 121 (1975): Oct. 20, H.R. 9852 considered and passed House. 
Vol. 122 (1976): Jan. 23, H.R. 9852 considered and passed Senate, amended. 
Apr. 27, considered and passed Senate. 
May 26, considered and passed House, amended, in lieu of 
H.R. 12945. 
June 30, House agreed to conference report. 
July 20, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS: 
Vol. 12, No. 32 (1976): Aug. 4, Presidential statement.