Housing and Community Development Act of 1980
PL 96-399 (S.2719), enacted 10/08/1980

94 STAT. 1614 
PUBLIC LAW 96-399—OCT. 8, 1980 
Oct. 8, 1980 
[S.2719] 
Housing and 
Community 
Development 
Act of 1980. 
42 use 5301 
note. 
Public Law 96-399 
96th Congress 
An Act 
To amend and extend certain Federal laws relating to housing, community and 
neighborhood development and preservation, and related programs, and for other 
purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, That this Act may be 
cited as the "Housing and Community Development Act of 1980". 
TITLE I—COMMUNITY AND NEIGHBORHOOD 
DEVELOPMENT AND CONSERVATION 
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Post, p. 1618. 
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Effective date. 
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note. 
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Urban county. 
ADMINISTRATION OP COMMUNITY DEVELOPMENT PROGRAM 
SEC. 101. (a) Section 1020)) of the Housing and Community Develop-
ment Act of 1974 is amended by adding the following new sentence at 
the end thereof: "Notwithstanding any other provision of law, for the 
fiscal years 1981, 1982, and 1983, (1) no data derived from the 1980 
Decennial Census, as provided for in subchapter II of title 13, United 
States Code, except those relating to population and poverty, shall be 
taken into account for purposes of section 119 or the allocation of 
amounts under section 106, and (2) no revision to the criteria for 
establishing a metropolitan area or defining a central city of such an 
area published after January 1,1980, shall be taken into account for 
purposes of this title, except that any area or city which would newly 
qualify as a metropolitan area or a central city of such an area by 
reason of any such revision shall be so considered.", 
O
^
X
D Section 102 of such Act is amended by striking out subsection 
(d) and inserting in lieu thereof the following: 
"(d) With respect to program years beginning with the program 
year for which grants are made available from amounts appropriated 
for fiscal year 1982 under section 103(aXl), the population of any unit 
of general local government which is included in that of an urban 
county as provided in subsection (aX6XB) shall be included in the 
population of such urban county for three program years beginning 
with the program year in which its population was first so included 
and shall not otherwise be eligible for a grant under section 106 as a 
separate entity, unless the application by the urban county is 
disapproved or withdrawn prior to or during such three-year period. 
During any such three-year period, the population of any unit of 
general local government which is not included in that of the urban 
county for the first year shall not be eligible for such inclusion in the 
second or third year.". 
(2) The amendment made by paragraph (1) shall take effect on 
October 1,1981. 
(c) Section 102 of such Act is amended by adding at the end thereof 
the following: 
"(e) Any county seeking qualification as an urban county, including 
any urban county seeking to continue such qualification, shall notify, 
as provided in tms subsection, each unit of general local government. 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1615 
which is included therein and is eligible to elect to have its population 
excluded from that of an urban county under subsection (a)(6)(B)(i), of 
its opportunity to make such an election. Such notification shall, at a 
time and in a manner prescribed by the Secretary, be provided so as 
to provide a reasonable period for response prior to the period for 
which such qualification is sought. The population of any unit of 
general local government which is provided such notification and 
which does not inform, at a time and in a manner prescribed by the 
Secretary, the county of its election to exclude its population from 
that of the county shall, if the county qualifies as an urban county, be 
included in the population of such urban county as provided in 
subsection (d).". 
(d) Section 104 of such Act is amended by adding the following new 42 use 5304. 
subsection at the end thereof: 
"(j) In any case in which a metropolitan city is located, in whole or 
in part, within an urban county, the Secretary may, upon the joint 
request of such city and county, approve the inclusion of the metro-
politan city as part of the urban county for purposes of planning a 
joint community development program, meeting the application 
requirements of this section, and implementing such program.", 
PRO RATA REDUCTION OF GRANTS 
SEC. 102. Section 106(g) of the Housing and Community Develop-
ment Act of 1974, as redesignated by section 111(d) of this Act, is 42 use 5306. 
amended— 
(1) by striking out "fiscal year 1978, fiscal year 1979, or fiscal 
year 1980" and inserting in lieu thereof "any fiscal year"; 
(2) by striking out "and hold-harmless" wherever it appears; 
and 
(3) by striking out "(d)(2)" and "(f)(1)(B)" and inserting in lieu 
thereof "(c)" and "(e)", respectively. 
INCLUSION OF CERTAIN INDEPENDENT CITIES IN DETERMINING 
COMMUNITY DEVELOPMENT GRANT AMOUNTS FOR URBAN COUNTIES 
SEC. 103. Section 106(bX4) of the Housing and Community Develop- 42 use 5306. 
ment Act of 1974 is amended to read as follows: 
"(4) In computing amounts or exclusions under this section with 
respect to any urban county, there shall be excluded units of general 
local government located in the county the populations of which are 
not counted in determining the eligibility of the urban county to 
receive a grant under this subsection, except that there shall be 
included any independent city (as defined by the Bureau of the 
Census) which— 
"(A) is not part of any county; 
"(B) is not eligible for a grant pursuant to subsection (b)(1); 
"(C) is contiguous to the urban county; 
"(D) has entered into cooperation agreements with the urban 
county which provide that the urban county is to undertake or to 
assist in the undertaking of essential community development 
and housing assistance activities with respect to such independ-
ent city; and 
"(E) is not included as a part of any other unit of general local 
government for purposes of this section. 
Any independent city which is included in any fiscal year for 
purposes of computing amounts pursuant to the preceding sentence 
79-194 
O—81—pt. 2 
22 : QL3 
94 STAT. 1616 
PUBLIC LAW 96-399—OCT. 8, 1980 
shall not be eligible for a grant under subsection (c) or (e) with respect 
to such fiscal year.". 
ENERGY AND EUGIBLE ACTIVITIES 
42 use 5301. 
SEC. 104. (a) Section 101 of the Housing and Community Develop-
ment Act of 1974 is amended— 
(1) by striking out "and" at the end of paragraph (1) of 
subsection (a); 
(2) by striking out the period at the end of paragraph (2) of 
subsection (a) and inserting in lieu thereof "; and "; 
(3) by adding the following new paragraph at the end of 
subsection (a): 
"(3) increasing energy costs which have seriously undermined 
the quality and overall effectiveness of local community and 
housing development activities.''; 
(4) by striking out "and" at the end of paragraph (2) of 
subsection (b); 
(5) by striking out the period at the end of paragraph (3) of 
subsection (b) and inserting in lieu thereof "; and ; 
(6) by adding the following new paragraph at the end of 
subsection Qo): 
"(4) concerted action by Federal, State, and local governments 
to address the economic and social hardships borne by communi-
ties as a consequence of scarce fuel supplies."; 
(7) by striking out "and" at the end of paragraph (7) of 
subsection (c); 
(8) by striking out the period at the end of paragraph (8) of 
subsection (c) and inserting in lieu thereof "; and '; and 
(9) by adding the following new paragraph after paragraph (8) 
of subsection (c): 
"(9) the conservation of the Nation's scarce energy resources, 
improvement of energy efficiency, and the provision of alterna-
tive and renewable energy sources of supply.'. 
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(b) Section 104(a) of such Act is amended by adding the following 
new sentence at the end thereof: "The applicant may, at the discre-
tion of the applicant, include (as part of the program summary, 
formulation, and description requirements described in paragraphs 
(1), (2), and (3) of this subsection) comparable information with 
respect to the applicant's energy conservation and renewable energy 
resource needs and objectives.'. 
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(c) Section 105(a) of such Act is amended— 
(1) by striking out paragraph (2) and inserting in lieu thereof 
the following: 
"(2) the acquisition, construction, reconstruction, or installa-
tion (including design features and improvements with respect to 
such construction, reconstruction, or installation which promote 
energy efficiency) of public works, facilities and site or other 
improvements—including neighborhood facilities, centers for 
the handicapped, senior centers, historic properties, utilities 
(including power generation and distribution facilities using 
renewable resource energy systems), streets, street lights, water 
and sewer facilities, foundations and platforms for air rights 
sites, pedestrian malls and walkways, and parks, playgrounds, 
and recreation facilities (including parks, playgrounds, and rec-
reational facilities established £is a result of reclamation and 
other construction activities carried out in connection with a 
river and land adjacent thereto where assistance under other 
Federal laws or programs is determined to be unavailable), flood 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1617 
Comprehensive 
community-wide 
energy use 
strategy. 
and drainage facilities in cases where assistance for such facili-
ties under other Federal laws or programs is determined to be 
unavailable, and parking facilities, solid waste disposal facilities, 
recycling or conversion facilities, and fire protection services and 
facilities which are located in or which serve designated commu-
nity development areas;"; 
(2) by inserting after "rehabilitation" the first time it appears 
in paragraph (4) the following: "(including rehabilitation which 
promotes energy efficiency)"; 
(3) by inserting after "education," in paragraph (8) the follow-
ing: "energy conservation,"; 
(4) by inserting after "community economic development" in 
paragraph (15) the following: "or energy conservation"; and 
(5) by striking out "and" at the end of paragraph (14), by 
striking out the period at the end of paragraph (15) and inserting 
in lieu thereof "; and", and by adding the following new para-
graph at the end thereof: 
"(16) activities necessary to the development of 
a comprehensive 
community-wide energy use strategy, which may include items 
such as— 
"(A) a description of energy use and projected demand by 
sector, by fuel type, and by geographic area; 
"(B) an analysis of the options available to the community 
to conserve scarce fuels and encourage use of renewable 
energy resources; 
"(C) an analysis of the manner in, and extent to, which the 
community's neighborhood revitalization, housing, and eco-
nomic development strategies will support its energy conser-
vation strategy; 
"(D) an analysis of the manner in, and the extent to, which 
energy conservation objectives will be integrated into local 
government operations, purchasing and service delivery, 
capital improvements budgeting, land use planning and 
zoning, and traffic control, parking, and public transporta-
tion functions; 
"(E) a statement of the actions the community will take to 
foster energy conservation and the use of renewable energy 
resources in the private sector, including the enactment and 
enforcement of local codes and ordinances to encourage or 
mandate energy conservation or use of renewable energy 
resources, financial and other assistance to be provided 
(principally for the benefit of low- and moderate-income 
persons) to make energy conserving improvements to resi-
dential structures, and any other proposed energy conserva-
tion activities; 
"(F) appropriate provisions for energy emergencies; 
"(G) identification of the local governmental unit responsi-
ble for administering the energy use strategy; 
"(H) provision of a schedule for implementation of each 
element in the strategy; and 
"(I) a projection of the savings in scarce fossil fuel con-
sumption and the development and use of renewable energy 
resources that will result from implementation of the energy 
use strategy.". 
(d) Section 105(a)(4) of such Act is amended by inserting ", and 42 USC 5305 
including the renovation of closed school buildings" after "privately 
owned properties". 
(e) Section 105(a) of such Act is amended— 
94 STAT. 1618 
PUBLIC LAW 96-399—OCT. 8, 1980 
(1) by inserting after "activities" the first time it appears in 
paragraph (14) the following: "(as specifically described in the 
42 use 5304. 
application submitted pursuant to section 104) ; and 
(2) by inserting after "project" in paragraph (15) the following: 
"(as specifically described in the application submitted pursuant 
to section 104)'\ 
DISPLACEMENT 
SEC. 105. (a) Section 104(a)(2) of the Housing and Community 
Development Act of 1974 is amended— 
(1) by striking out "including activities," in clause (B) and 
inserting in lieu thereof "activities, and objectives, including 
activities"; 
(2) by striking out "and objectives," in clause (B); and 
(3) by striking out clause (C) and inserting in lieu thereof the 
following: "(C) takes into account the effect of such activities on 
the involuntary displacement of low- and moderate-income per-
sons and takes into account appropriate environmental factors;". 
Study and report 
(b) The Secretary of Housing and Urban Development shall con-
to Congress 
tinue the study on involuntary displacement conducted under section 
902 of the Housing and Community Development Amendments of 
42 use 5313 
1978 and shall transmit, not later than March 30,1981, a report to the 
note. 
Congress which shall contain (1) data collected since the initial report 
submitted under such section 902, and (2) further recommendations 
on minimizing involuntary displacement and alleviating problems 
caused by such displacement. 
AUTHORIZATIONS 
SEC. 106. (a) The second sentence of section 103(a)(1) of the Housing 
42 use 5303. 
and Community Development Act of 1974 is amended to read as 
follows: "There are authorized to be appropriated for these purposes 
not to exceed $3,810,000,000 for the fiscal year 1981, not to exceed 
$3,960,000,000 for the fiscal year 1982, and not to exceed 
$4,110,000,000 for the fiscal year 1983.". 
(b) Section 103(a)(2) of such Act is amended to read as follows: 
"(2) Of the amounts approved in appropriation Acts pursuant to 
paragraph (1), $275,000,000 for the fiscal year 1981 shall be added to 
Post, p. 1621. 
the amount available for allocation under section 106(c) and shall not 
42 use 5307. 
be subject to the provisions of section 107.". 
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(c) Section 103(c) of such Act is amended to read as follows: 
"(c) There are authorized to be appropriated for supplemental 
f
rant assistance under section 119 amounts aggregating not to exceed 
1,475,000,000 for fiscal years prior to the fiscal year 1981, and an 
additional amount not to exceed $675,000,000 for each of the fiscal 
years 1981,1982, and 1983.". 
SECTION 107 DISCRETIONARY FUND 
SEC. 107. Section 107(a) of the Housing and Community Develop-
42 use 5307. 
ment Act of 1974 is amended by striking out "of authority to enter 
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into contracts approved in appropriation Acts under section 103(a)(1) 
for each of the fiscal years 1975, 1976,1977,1978,1979, and 1980, an 
amount equal to 3 per centum thereof shall" and inserting in lieu 
thereof "approved in appropriation Acts under section 103(a)(1) for 
each of the fiscal years 1981, 1982, and 1983, not more than 
$104,000,000 for fiscal year 1981, not more than $104,000,000 for fiscal 
year 1982, and not more than $107,000,000 for fiscal year 1983, may". 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1619 
LIMITATION ON COMMUNITY DEVELOPMENT GUARANTEES 
SEC. 108. Section 108 of the Housing and Community Development 
Act of 1974 is amended— 
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(1) by inserting after "commitments to guarantee" in the first 
sentence of subsection (a) the following: ", only to such extent or 
in such amounts as provided in appropriation Acts/*; 
(2) by adding the following new sentence at the end of subsec-
tion (a): "During fiscal year 1981, the Secretary may not enter 
into commitments to guarantee under this section notes and 
other obligations with an aggregate principal amount in excess of 
$300,000,000."; and 
(3) by striking out "Notwithstanding any other provision of 
this section, the" in subsection (k) and inserting in lieu thereof 
"The". 
PERFORMANCE REPORTS FOR CERTAIN NON-ENTITLEMENT COMMUNITIES 
SEC. 109. Section 104(d) of the Housing and Community Develop-
ment Act of 1974 is amended— 
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(1) by striking out "Prior to the beginning of fiscal year 1977 
and each fiscal year thereafter, each" in the first sentence and 
inserting in lieu thereof "Each"; 
(2) by inserting after the first sentence the following new 
sentence: "The performance report shall be submitted annually 
prior to the beginning of each fiscal year, except that a grantee 
which receives a grant made pursuant to subsection (c) or (e) of 
section 106 which the Secretary determines does not fund a Post, p. 1621. 
comprehensive community development program may submit a 
report with respect to such grant less frequently than annually 
as determined by the Secretary."; and 
(3) by inserting "(or less frequently as the Secretary deter-
mines appropriate in the case of a grant for which a report is 
submitted less frequently than annually in accordance with the 
second sentence of this paragraph)" after "at least on an annual 
basis" in the third sentence. 
HISTORIC PRESERVATION 
SEC. 110. (a) Section 119(c) of the Housing and Community Develop-
ment Act of 1974 is amended by— 
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(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 the following new paragraph after paragraph (6); 
"(7) include (A) an identification of all properties, if any, which 
are included on the National Register of Historic Places and 
which, as determined by the applicant, will be affected by the 
project for which the application is made; (B) an identification of 
all other properties, if any, which will be affected by such project 
and which, as determined by the applicant, may meet the criteria 
established by the Secretary of the Interior for inclusion on such 
Register, together with documentation relating to the inclusion 
of such properties on the Register; and (C) a description of the 
effect, as determined by the applicant, of the project on the 
properties identified pursuant to clauses (A) and (B).". 
O
t
)
) Section 119 of such Act is amended by adding the following new 
subsection at the end thereof: 
94 STAT. 1620 
PUBLIC LAW 96-399—OCT. 8, 1980 
Infra. 
"(n) In the case of any application which identifies any property in 
accordance with subsection (c)(7)(B), the Secretary may not commit 
funds with respect to an approved application unless the applicant 
has certified to the Secretary that the appropriate State historic 
preservation officer and the Secretary of the Interior have been 
provided an opportunity to take action in accordance with the 
provisions of 
section 121(b).". 
(c) Title I of such Act is amended by adding the following new 
section at the end thereof: 
Regulations. 
42 u s e 5320. 
42 u s e 5318. 
16 u s e 470. 
16 u s e 469. 
Ante, p. 1619. 
Information 
submittal. 
Application 
determination. 
Regulations. 
Post, p. 1621. 
42 u s e 5318. 
HISTORIC PRESERVATION REQUIREMENTS 
"SEC. 121. (a) With respect to applications for assistance under 
section 119, the Secretary of the Interior, after consulting with the 
Secretary, shall prescribe and implement regulations concerning 
projects funded under section 119 and their relationship with— 
"(1) 'An Act to establish a program for the preservation of 
additional historic properties throughout the Nation, and for 
other purposes', approved October 14, 1966, as amended; and 
"(2) An Act to provide for the preservation of historical and 
archaeological data (including relics and specimens) which might 
otherwise be lost as a result of the construction of a dam', 
approved June 27,1960, as amended. 
"(b) In prescribing and implementing such regulations with respect 
to applications submitted under section 119 which identify any 
property pursuant to subsection (c)(7)(B) of such section, the Secre-
tary of the Interior shall provide at least that— 
"(1) the appropriate State historic preservation officer (as 
determined in accordance with regulations prescribed by the 
Secretary of the Interior) shall, not later than 45 days after 
receiving information from the applicant relating to the identifi-
cation of properties which will be affected by the project for 
which the application is made and which may meet the criteria 
established by the Secretary of the Interior for inclusion on the 
National Register of Historic Places (together with documenta-
tion relating to such inclusion), submit his or her comments, 
together with such other information considered necessary by 
the officer, to the applicant concerning such properties; and 
"(2) the Secretary of the Interior shall, not later than 45 days 
after receiving from the applicant the information described in 
paragraph (1) and the comments submitted to the applicant in 
accordance with paragraph (1), make a determination as to 
whether any of the properties affected by the project for which 
the application is made is eligible for inclusion on the National 
Register of Historic Places. 
"(c) The Advisory Council on Historic Preservation shall prescribe 
regulations providing for expeditious action by the Council in making 
its comments under section 106 of the Act referred to in subsection 
(a)(1) in the case of properties which are included on, or eligible for 
inclusion on, the National Register of Historic Places and which are 
affected by a project for which an application is made under section 
119.". 
42 u s e 5302. 
TECHNICAL AMENDMENTS TO THE BLOCK GRANT PROGRAM 
SEC. 111. (a) Section 102 of the Housing and Community Develop-
ment Act of 1974 is amended by striking out "Office of Management 
and Budget" each place it appears in paragraphs (3), (4), and (8) of 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1621 
subsection (a) and in subsection (b) and inserting in lieu thereof 
"Department of Commerce". 
(b) Section 103 of such Act is amended by striking out subsection (e). 42 use 5303. 
(c) Section 104 of such Act is amended— 
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(1) by striking out "106(a)" in the first sentence of subsection (c) 
and inserting in Ueu thereof "1060?)"; and 
(2) by striking out "(d)(2)" and "(f)(1)(B)" wherever they appear 
in subsections (d) and (e) and inserting in Heu thereof "(c)' and 
"(e)", respectively. 
(d) Section 106 of such Act is amended by striking out subsections 42 use 5306. 
(c), (g), (h), (i), (j), and (1) and redesignating subsections (d), (e), (f), (k), 
and (m) as subsections (c), (d), (e), (f), and (g), respectively. 
(e) The second sentence of section 106(a) of such Act is amended— 
(1) by striking out "subsections (c) and (e)" and inserting in lieu 
thereof "subsection (d)"; and 
(2) by striking out "aggregate", "the greater o f and "or its 
hold-harmless amount computed pursuant to subsection (g)". 
(f) Section 106(c) of such Act, as redesignated by subsection (d) of 
this section, is amended— 
(1) by striking out "allocated by the Secretary, first, for grants 
to metropolitan cities, urban counties, and other units of general 
local government within metropolitan areas to meet their hold-
harmless needs as determined under subsections (g) and (h), and 
second, in accordance with the provisions of paragraph (2). 
"(2) Any portion of such amounts which remains after applying 
the provisions of paragraph (1) shall be"; 
(2) by redesignating paragraph (3) as paragraph (2); 
(3) by striking out "paragraph (2)' wherever it appears in 
paragraph (2), as redesignated by paragraph (2) of this subsec-
tion, and inserting in lieu thereof "paragraph (1)"; 
(4) by striking out the second sentence of paragraph (2), as 
redesignated; and 
(5) by striking out in the final sentence of paragraph (2), as 
redesignated, ", Indian tribes, and units of general local govern-
ment which are entitled to hold-harmless grants pursuant to 
subsection (h)" and inserting in lieu thereof "and Indian tribes". 
(g) Section 106(e) of such Act, as redesignated by subsection (d) of 
this section, is amended— 
(1) by striking out in the first sentence of paragraph (1) the 
following: "allocated by the Secretary— 
"(A) first, for grants to units of general local government 
outside of metropolitan areas to meet their hold-harmless 
needs as determined under subsection (h); and 
"(B) second, any portion of such amount which remains 
after applying the provisions of subparagraph (A) shall be"; 
(2) by striking out 
(i)" and "(ii)" in the first sentence of 
paragraph (1) and inserting in lieu thereof "(A)" and "(B)", 
respectively, and by striking out "(I)", "(II)", and "(III)" wherever 
they appear in such sentence and inserting in lieu thereof "(i)", 
"(ii)", and "(iii)", respectively; 
(3) by striking out "clause (i) of subparagraph (B)" and "clause 
(ii) of subparagraph (B)" in the second sentence of paragraph (1) 
and inserting in lieu thereof "subparagraph (A)", and "subpara-
graph (B)", respectively; 
(4) by striking out "subparagraph (B)" in the third sentence of 
paragraph (1) and inserting in lieu thereof "this paragraph", and 
by striking out "such subparagraph" wherever it appears in such 
sentence and inserting in lieu thereof "such paragraph"; 
94 STAT. 1622 
PUBLIC LAW 96-399—OCT. 8, 1980 
(5) by striking out the second sentence of paragraph (2); 
(6) by striking out "paragraph (1)(B)" wherever it appears in 
paragraph (2) and inserting in lieu thereof "paragraph (1)"; 
(7) by striking out "units of general local government which 
are entitled to hold-harmless grants pursuant to subsection (h) 
and" in the last sentence of paragraph (2); and 
(8) by striking out "paragraph (IXB)" in the first sentence of 
paragraph (3) and inserting in lieu thereof "paragraph (1)". 
42 use 5316. 
(h) Section 116 of such Act is amended— 
(1) by striking out subsections (b), (f), and (h), and by redesignat-
ing subsection (g) as subsection (b); and 
(2) by striking out in subsection (b), as redesignated, "or from a 
unit a general local government for a grant pursuant to section 
106(h)". 
REALLOCATION OF FUNDS 
SEC. 112. Section 106(d) of the Housing and Community Develop-
ment Act of 1974, as redesignated by section 111(d) of this Act, is 
amended by striking out "first," and all that follows through the 
period at the end of the first sentence and inserting in lieu thereof the 
following: "first, in any metropolitan area in the same State, with a 
preference for units of general local government in the same metro-
politan area to which such funds were originally allocated, and 
second, in any other metropolitan area.". 
Report to 
Congress. 
42 u s e 5313 
note. 
42 u s e 5301. 
REPORT ON COMMUNITY DEVELOPMENT GRANT FORMULA 
SEC. 113. The Secretary of Housing and Urban Development shall, 
not later than January 1,1983, report to the Congress with respect to 
the adequacy, effectiveness, and equity of the formula used for 
allocation of funds under title I of the Housing and Community 
Development Act of 1974, with specific analysis and recommenda-
tions concerning the manner in which such formula is or could be 
affected by the data derived from the 1980 decennial census. 
REHABIUTATION LOANS 
42 use 1452b. 
SEC. 114. (a) Section 312(c)(4) of the Housing Act of 1964 is 
amended— 
(1) by striking out in subparagraph (A) "$27,000" and inserting 
in lieu thereof '^$33,500"; 
(2) by inserting "(i)" after "secured by such property" in 
subparagraph (A); 
(3) by inserting ", and (ii) if the Secretary determines that such 
refinancing is necessary and appropriate before the semicolon 
at the end of 
subparagraph (A); 
(4) by striking out "and" at the end of subparagraph (A); 
(5) by redesignating subparagraph (B) as subparagraph (D); and 
(6) by inserting after subparagraph (A) the following: 
"(B) in the case of residential property in which some or all of 
the dwelling units do not contain kitchen facilities and to which 
there is connected a central dining facility where meals can be 
served to the occupants of such residential property, $25,000 per 
dwelling unit; 
"(C) in the case of residential property in which some or all of 
the dwelling units do not contain bathroom or kitchen facilities, 
$15,000 per dwelling unit; and". 
O
b
) Section 312(d) of such Act is amended— 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1623 
(1) by striking out "and not to exceed $140,000,000 for the fiscal 
year liegiiming on October 1, 1979" in the first sentence and 
inserting in lieu thereof "not to exceed $140,000,000 for the fiscal 
year beginning on October 1,1979, not to exceed $144,000,000 for 
the fiscal year beginning on October 1, 1980, and not to exceed 
$129,000,000 for the fiscal year beginning on October 1, 1981"; 
(2) by inserting the following before the period at the end of the 
third sentence thereof:", and not more than $210,000,000 may be 
approved in appropriation Acts for such lo£ins with respect to the 
fiscal year beginning on October 1,1980"; and 
(3) by striMng out the fourth and fifth sentences and inserting 
in lieu thereof the following: "Of the amount available for loans 
under this section during any fiscal year beginning on or after 
October 1, 1980, the Secretary may utilize not more than one-
third for rehabilitation loans for mmtifamily properties.". 
(c) Section 312(f) of such Act is amended by inserting before the 42 use I452b. 
period at the end thereof the following: ", except that the Secretary 
may not delegate to any agency or organization outside the Depart-
ment of Housing and Urban Development the authority to determine 
whether to permit refinancing of existing indebtedness under subsec-
tion (c)(4XA)". 
(d) Section 312(h) of such Act is amended— 
(1) by striking out "October 15, 1980" and inserting in lieu 
thereof "September 30,1982"; and 
(2) by striking out "October 16, 1980" and inserting in lieu 
thereof "October 1,1982". 
NEIGHBORHOOD SELF-HELP DEVELOPMENT 
SEC. 115. The first sentence of section 705 of the Housing and 
Community Development Amendments of 1978 is amended by insert- 42 use 8124. 
ing after "1980" the following:", and not to exceed $10,000,000 for the 
fiscal year 1981". 
URBAN HOMESTEADING 
SEC. 116. The first sentence of section 810(h) of the Housing and 
Community Development Act of 1974 is amended by striking out 1
2 use I706e. 
"subsection (c)" and inserting in lieu thereof "subsections (c) and (g)". 
UDAG AMENDMENTS RELATING TO GUAM, THE VIRGIN ISLANDS, AND 
INDIAN TRIBES 
SEC. 117. (a) Section 119 of the Housing and Community Develop-
ment Act of 1974 is amended by adding the following new subsection 
at the end thereof: 
"(o)(l) For the purpose of carrying out this section, the term 'city' 
includes Guam, the Virgin Islands, and Indian tribes. 
"(2) The application requirements— 
"(A) of 
section 104, and 
"(B) of subsection (c)(2) of this section, to the extent such 
subsection requires a concentrated urban development action 
program to be consistent with the program and plan described in 
paragraphs (2) and (4) of 
section 104(a), 
shall not apply to applications by Guam, the Virgin Islands, or Indian 
tribes for assistance under this section. 
"(3) Grants may be made under this section to Guam, the Virgin 
Islands, or an Indian tribe only with respect to fiscal years for which 
Guam, the Virgin Islands, or such Indian tribe, as the case may be. 
42 u s e 5318. 
"eity." 
Application 
requirements. 
42 u s e 5304. 
Grants. 
94 STAT. 1624 
PUBLIC LAW 96-399—OCT. », lyou 
42 use 5307. 
31 use 1221 
note. 
h£is submitted an application meeting requirements prescribed pur-
suant to section 107. 
"(4) The Secretary may not approve a grant to an Indian tribe 
unless such Indian tribe— 
"(A) is located on a reservation or in an Alaskan Native 
Village; and 
"(B) is an eligible recipient under the State and Local Fiscal 
Assistance Act of 1972.". 
0>) Section 107(d) of such Act is amended by inserting "under this 
title" after "Indian tribe" in the first sentence. 
TITLE II—HOUSING ASSISTANCE PROGRAMS 
LOW INCOME HOUSING 
42 use 1437c. 
SEC. 201. (a) Section 5(c) of the United States Housing Act of 1937 is 
amended to read as follows: 
eontracts. 
"(c)(1) The Secretary may enter into contracts for annual contribu-
tions aggregating not more than $7,875,049,000 per annum, which 
amount shall be increased by $1,494,400,000 on October 1,1980. The 
additional authority to enter into such contracts provided on or after 
October 1, 1980, shall be effective only in such amounts as may be 
approved in appropriation Acts; in addition, the aggregate amount 
which may be obligated, with respect to the additional authority 
provided on October 1, 1980, over the duration of the contracts may 
not exceed $31,200,000,000. The Secretary, in utilizing the additional 
authority to enter into such contracts provided on and after October 
1, 1980, shall administer the programs authorized by this Act to 
provide assistance, to the maximum extent practicable, consistent 
with section 213(d) of the Housing and Community Development Act 
Post, p. 1629. 
of 1974. 
"(2)(A) Of the additional authority approved in appropriation Acts 
and made available on October 1,1980, the Secretary shall enter into 
contracts aggregating at least $100,000,000 for assistance to projects 
Post, p. 1625. 
under section 14. 
"(B) Of the balance of such additional authority approved in 
appropriation Acts and made available on October 1, 1980, which 
remains after deducting the amount to be provided for as^stance to 
projects under section 14, the Secretary may not enter into contracts 
aggregating— 
"(i) more than 37.5 per centum of such balance for existing 
42 use I437f. 
units assisted under section 8, including assistance provided 
under subsection 0') of such section; and 
"(ii) more than 62.5 per centum of such balance for newly 
constructed and substantially rehabilitated units assisted under 
this Act, of which not more than $265,800,000 shall be made 
available for such units assisted under this Act other than 
section 8. 
"(3) The Secretary shall enter into only such new contracts for 
preliminary loans as are consistent with the number of dwelling 
units for which contracts for annual contributions may be entered 
into. 
Appropriation 
"(4) The full faith and credit of the United States is solemnly 
authorization. 
pledged to the payment of all annual contributions contracted for 
pursuant to this section, and there are hereby authorized to be 
appropriated in each fiscal year, out of any money in the Treasury 
not otherwise appropriated, the amounts necessary to provide for 
such payments. 
"(5) All payments of annual contributions pursuant to this section 
shall be made out of any funds available for purposes of this Act when 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1625 
42 u s e 1437b. 
42 u s e 1437g. 
42 u s e 1437d. 
such payments are due, except that funds obtained through the 
issuance of obUgations pursuant to section 4(b) (including repayments 
or other realizations of the principal of loans made out of such funds) 
shall not be available for the payment of such annual contributions,". 
(b) Section 9(c) of such Act is amended— 
(1) by striking out "and" immediately after "on or after 
October 1,1978,"; and 
(2) by inserting immediately before the period at the end 
thereof the following: ", and not to exceed $826,000,000 on or 
after October 1,1980 . 
(c) Section 6(b) of 
such Act is amended— 
(1) by inserting the following before the period at the end of the 
second sentence: "; except that, for projects to be constructed as a 
result of assistance provided under this Act and which are to be 
located on Indian reservations or in Alaskan Native villages, the 
Secretary shall determine and make the prototype costs availa-
ble within a reasonable time prior to the beginning of each 
construction season as is determined to be appropriate for the 
area in which the project is to be located"; and 
(2) by striking out "and" at the end of clause (6) of the third 
sentence, and by adding the following before the period at the 
end of such sentence: ", and (8) with respect to remote areas such 
as may be found in connection with projects developed under the 
Indian and Alaskan Native housing program assisted under this 
Act, the extensive transportation required to provide the neces-
sary labor, materials, and equipment to the project site and any 
additional conditions that the Secretary determines should be 
taken into consideration under clauses (1) through (7) for such 
projects". 
(d) Section 9(a)(1) of such Act is amended by striking out "and" 42 use I437g, 
before "(B)" in the second sentence, and by inserting the following 
before the period at the end of the second sentence: , and (C) with 
respect to housing projects developed under the Indian and Alaskan 
Native housing program assisted under this Act, to provide funds (in 
addition to any other operating costs contributions approved by the 
Secretary under this section) as determined by the Secretary to be 
required to cover the administrative costs to an Indian housing 
authority during the development period of a project approved 
pursuant to section 5 and until such time as the project is occupied". 
(e) Section 6(c)(4XA) of such Act is amended by inserting immedi-
ately after "(A)" the following: "except for projects or portions of 
projects specifically designated for elderly families with respect to 
which the Secretary has determined that application of this clause 
would result in excessive delays in meeting the housing needs of such 
families,". 
42 u s e 1437c. 
42 u s e 1437d. 
PUBLIC HOUSING COMPREHENSIVE IMPROVEMENT ASSISTANCE PROGRAM 
SEC. 202. (a) The United States Housing Act of 1937 is amended by 
adding the following new section at the end thereof: 
COMPREHENSIVE IMPROVEMENT ASSISTANCE PROGRAM 
"SEC. 14. (a) It is the purpose of this section to provide assistance— 42 use 1437/. 
"(1) to improve the physical condition of existing public hous-
ing projects, and 
94 STAT. 1626 
PUBLIC LAW 96-399—OCT. 8, 1980 
Ante, p. 1624. 
Eligibility 
requirements. 
Ante, p. 1624. 
42 u s e 1437g. 
42 u s e 1437f. 
Applications. 
"(2) to upgrade the management and operation of such 
projects, 
in order to assure that such projects continue to be available to serve 
low-income families. 
"(b) The Secretary may make available and contract to make 
available financial assistance (in such amounts as are authorized 
pursuant to section 5(c) and as may be approved in appropriations 
Acts) to public housing agencies for the purpose of improving the 
physical condition of existing low-rent public housing projects and for 
upgrading the management and operation of such projects to the 
extent necessary to maintain such physical improvements. 
"(c) Assistance under subsection (b) may be made available only for 
low-rent housing projects which— 
"(1) are owned by public housing agencies; 
"(2) are operated as rental housing projects and receive assist-
ance under section 5(c) or section 9 of this Act; 
"(3) are not assisted under section 8 of this Act; and 
"(4) meet such other requirements consistent with the pur-
poses of this section as the Secretary may prescribe. 
"(d) Except as provided in subsection (eX4), no assistance may be 
made available under subsection (b) unless the Secretary has 
approved an application from the public housing agency which has 
been developed in consultation with appropriate local officials and 
with tenants of the housing projects for which assistance is requested. 
Such application shall contain at least— 
"(1) a comprehensive assessment of (A) the current physical 
condition of each project for which assistance is requested, and 
(B) the physical improvements necessary for each such project to 
meet the standards established by the Secretary pursuant to 
subsection (j); 
"(2) an identification, for each such project, of the equipment 
systems or structural elements which would normally be 
replaced (assuming routine and timely maintenance is per-
formed) over the remaining period of the annual contributions 
contract or during the 30-year period beginning on the date of 
submission of the application, whichever period is longer; 
"(3) a comprehensive assessment of the improvements needed 
to upgrade the management and operation of each such project 
so that decent, safe, and sanitary living conditions will be 
provided in such projects; such assessment shall include at least 
an identification of needs related to— 
"(A) the management, financial, and accounting control 
systems of the public housing agency which are related to 
each project eligible for assistance under this section; 
"(B) the adequacy and qualifications of personnel 
employed by such public housing agency (in the manage-
ment and operation of such projects) for each category of 
employment; and 
"(C) the adequacy and efficacy of— 
"(i) tenant programs and services in such projects; 
"(ii) the security of each such project and its tenants; 
"(iii) policies and procedures of the public housing 
agency for the selection and eviction of tenants in such 
projects; and 
"(iv) other policies and procedures of such agency 
relating to such projects, as specified by the Secretary; 
and 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1627 
"(4) a plan for making the improvements and replacements, 
and for meeting the needs, described in paragraphs (1), (2), and 
(3); such plan shall include at least— 
"(A) a schedule of those actions which are to be completed, 
over a period of not greater than 5 years from the date of 
approval of such application by the Secretary, within each 
12-month period covered by such plan and which are 
necessary— 
"(i) to make the improvements, described in para-
graph (1)(B), for each project for which assistance is 
requested, and 
(ii) to upgrade the management and operation of 
such projects as described in paragraph (3); 
"(B) the estimated cost of each of the actions described in 
subparagraph (A); 
"(C) an estimate of the total costs of the replacement of the 
items identified for each such project pursuant to paragraph 
(2) over the remaining period of the annual contributions 
contract or during the 30-year period beginning on the date 
of submission of the application, whichever period is longer, 
including an estimate of the amount of funds necessary to 
fund the costs which have accrued for the period which ends 
upon the date on which the application is made, and an 
estimate of the costs which will accrue during each 12-month 
period subsequent to such application; 
"(D) an operating budget for each such project for each 12-
month period covered by such plan, excluding costs 
described in subparagraphs (B) and (C); and 
"(E) an estimate of the financial resources which will be 
available from all sources to each such project and to the 
public housing agency (to the extent the resources of the 
agency relate to such project), and the amounts of assistance 
which are being requested pursuant to subsection QD) for 
each 12-month period covered by the plan. 
"(e) The amount of financial assistance made available under Financial 
subsection (b) to any public housing agency with respect to any year assistance, 
may not exceed the sum o
f
— 
limitation. 
"(1) an amount determined by the Secretary to be necessary to 
undertake the actions specified for such year in the schedule 
submitted pursuant to subsection (d)(4)(A); 
"(2) the amount determined necessary by the Secretary to fund 
the replacement costs which have been identified pursuant to 
subsection (d)(4)(C) for each project, which have accrued for the 
period ending at the beginning of such year, and for which 
pavment under subsection (b) has not been made previously; 
'(3) the amount determined necessary by the Secretary to 
reimburse the public housing agency for the cost of developing 
the plan described pursuant to subsection (d)(4), less any amount 
which has been provided such public housing agency with respect 
to such year under paragraph (4); and 
"(4) in the case of a public housing agency which meets such 
criteria of financial distress as are established by the Secretary 
and which has submitted the information described in para-
graphs (1), (2), and (3) of subsection (d), the amount determined 
necessary by the Secretary to enable such agency to develop the 
plan described pursuant to subsection (d)(4); 
except that not more than 5 per centum of the total amount utilized 
for annual contributions contracts under subsection (b) in any year 
94 STAT. 1628 
PUBLIC LAW 96-399—OCT. 8, 1980 
Low-rent 
housing project, 
demolition. 
Ante, p. 1624. 
42 u s e 1437f. 
shall be made available for the purposes described in paragraphs (3) 
and (4). 
"(f) Where an application made pursuant to this section proposes 
demolition of any low-rent housing project or any portion of such a 
project, the Secretary may not approve such application unless the 
Secretary determines that— 
"(1) timely replacement of the units in such project will be 
undertaken by the public housing agency; 
"(2) the total cost of providing such replacement housing is less 
than the total cost of rehabilitation of such project, except that 
the Secretary may waive such requirement where the Secretary 
determines that the demolition is necessary to meet the purposes 
of this section; and 
"(3) low-income families displaced by such proposed demolition 
will be provided with decent, safe, sanitary, and affordable 
housing. 
"(g) No assistance shall be made available to a public housing 
agency pursuant to subsection (b) for any year subsequent to the first 
year for which such assistance is made available to such agency 
unless the Secretary has determined that such agency has made 
substantial efforts to meet the objectives for the preceding year under 
the plan described in subsection (d)(4) and approved by the Secretary. 
"(h) In making assistance available under subsection (b), the 
Secretary shall give preference to public housing agencies— 
"(1) which request assistance for projects (A) having conditions 
which threaten the health or safety of the tenants, or (B) having 
a significant number of vacant, substandard units; and 
"(2) which have demonstrated a capability of carrying out the 
activities proposed in the plan submitted by the agency pursuant 
to subsection (d)(4) and approved by the Secretary. 
"(i)(l) In addition to assistance made available under subsection (b), 
the Secretary may, without regard to the requirements of subsections 
(c), (d), (e), (g), and (h), make available and contract to make available 
financial assistance (in such amounts as are authorized pursuant to 
section 5(c) and as approved in appropriation Acts) to any public 
housing agency in an amount which the Secretary determines is 
necessary to meet emergency or special purpose needs. Such needs 
shall be limited to— 
"(A) correcting conditions which threaten the health or safety 
of the tenants of any project (i) which is described in subsection 
(c), and (ii) with respect to which an application for assist-
ance pursuant to subsection (d) has not been approved by the 
Secretary; 
"(B) correcting conditions (i) which threaten the health or 
safety of the tenants of any project with respect to which an 
application for assistance pursuant to subsection (d) has been 
approved, and (ii) which were unanticipated at the time of the 
development of 
such application; 
"(C) correcting conditions which threaten the health or safety 
of the occupants of any low-income housing project not described 
in subsection (c) and not assisted pursuant to section 8; or 
"(D) physical improvements needs which (i) would not other-
wise be eligible for assistance under this section, and (ii) pertain 
to any low-income housing project other than a project assisted 
under section 8. 
"(2) The Secretary may issue such rules and regulations as may be 
necessary to carry out this subsection. 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1629 
"O'XD The Secretary may issue such rules and regulations as may 
be necessary to carry out the provisions and purposes of this section. 
"(2) The Secretary shall issue rules and regulations establishing 
standards which provide for decent, safe, and sanitary living condi-
tions in low-rent public housing projects and for energy conserving 
improvements in such projects and which, to the extent practicable, 
are consistent with the Minimum Property Standards for Multi-
Family Housing as they reasonably would be applied to existing 
housing, except that the Secretary may establish higher standards on 
a project-by-project basis in such cases where the Secretary deems 
such higher standards appropriate for furthering the purposes of this 
section.'. 
(b) Section 13 of such Act is amended— 
(1) by striking out subsection (a); and 
(2) by striking out "(b)" in subsection (b). 
(c) Section 6(f) of such Act is amended by inserting "pursuant to 42 use I437d 
section 14" after "modifications" in the first and second sentences 
thereof. 
(d) Section 213(dXl) of the Housing and Community Development 
Act of 1974 is amended by striking out "modernization of low-income 
housing projects" and inserting in lieu thereof "carrying out section 
14 of such Act". 
93 Stat. 1109. 
42 u s e 1437k. 
42 u s e 1439. 
Ante, p. 1625. 
SECTION 8 AMENDMENTS 
SEC. 203. (a) Section 8(cXl) of the United States Housing Act of 1937 42 use I437f. 
is amended by adding the following new sentence after the second 
sentence: "In the case of newly constructed and substantially reha-
bilitated units, the exception in the preceding sentence shall not 
apply to more than 20 per centum of the total amount of authority to 
enter into annual contributions contracts for such units which is 
allocated to an area and obligated with respect to any fiscal year 
beginning on or after October 1,1980.". 
(b) Section 8(eK5) of such Act is amended by inserting the following 
new sentence after the second sentence thereof: "Notwithstanding 
subsection (cXD of this section, the Secretary may, in carrying out the 
preceding sentence, establish a maximum monthly rent (for units 
upgraded pursuant to this paragraph) which exceeds the fair market 
rental by not more than 20 per centum if such units are located in an 
area where the Secretary finds cost levels so require, except that the 
Secretary may approve maximum monthly rents which exceed the 
fair market rentals by more than 20 but not more than 30 per centum 
where the Secretary determines that special circumstances warrant 
such higher rent or where necessary to the implementation of a local 
housing assistance plan.". 
1
2 use 
1715z-la. 
OPERATING ASSISTANCE FOR TROUBLED MULTIFAMILY HOUSING 
PROJECTS 
SEC. 204. (a) The first sentence of section 201(h) of the Housing and 
Community Development Amendments of 1978 is amended— 
(1) by striking out "and" after "the fiscal year 1979,"; and 
(2) by inserting before the period at the end thereof the 
following: ", and not to exceed $31,100,000 for the fiscal year 
1981". 
(b) Section 236(fK3XB) of the National Housing Act is amended— 1
2 use I7i5z-i. 
(1) by striking out "October 15, 1980" in the third sentence 
and inserting in lieu thereof "September 30,1981"; and 
94 STAT. 1630 
PUBLIC LAW 96-399—OCT. 8, 1980 
(2) by striking out "on or after October 1, 1978," in the first 
sentence and all that follows through "October 31,1978,". 
12 u s e 1701s. 
12 u s e 1715z. 
Mortgage 
insurance. 
RENT SUPPLEMENTS 
SEC. 205. Section 101(1) of the Housing and Urban Development Act 
of 1965 is amended— 
(1) by striking out "may" the first time it appears in the first 
sentence and inserting in lieu thereof "shall, not later than 4 
years after the date of enactment of the Housing and Community 
Development Act of 1980,"; 
(2) by inserting the following new sentence after the first 
sentence thereof: "In amending such contracts, the Secretary 
shall provide that the housing with respect to which payments 
are made under this section be maintained as low- and moderate-
income housing during the term of the original contract."; and 
(3) by striking out "preceding" in the second sentence and 
inserting in lieu thereof "the first sentence of this paragraph". 
SECTION 235 STANDARD PROGRAM 
SEC. 206. (a) Section 235 of the National Housing Act is amended— 
(1) by striking out "$32,000", "$38,000", "$38,000", and 
"$44,000" in the last proviso in subsection (h){2) and inserting in 
lieu thereof "$40,000", "$47,500", and "$47,500", and "$55,000", 
respectively; 
(2) by striking out "$32,000", "$38,000", "$38,000", and 
"$44,000", wherever they appear in subsections (i)(3)(B) and 
(i)(3)(C), and inserting in lieu thereof "$40,000", "$47,500", 
"$47,500", and "$55,000", respectively; 
(3) by striking out "$44,000", and "$49,000" in subsection 
(i)(3)(D) and inserting in lieu thereof "$55,000", and "$61,250", 
respectively; 
(4) by adding at the end thereof the following new subsection: 
"(p) The Secretary may insure a mortgage under this section 
involving a principal obligation which exceeds, by not more than 10 
per centum, the maximum limits specified under subsection (b)(2) or 
(i)(3) of this section, or, if applicable, the maximum principal obliga-
tion insurable pursuant to subsection (o) of this section, if the 
mortgage relates to a dwelling to be occupied by a physically 
handicapped person and the Secretary determines that such action is 
necessary to reflect the cost of making such dwelling accessible to and 
usable by such person,". 
03)(1) Subsection (c) of such section is amended— 
(A) by inserting "(1)" after "(c)"; 
(B) by redesignating paragraphs (1) and (2) of such subsection 
as subparagraphs (A) and (B), respectively; and 
(C) by adding the following new paragraph at the end of such 
subsection: 
"(2)(A) Upon disposition by the homeowner of any property assisted 
pursuant to this section or where the homeowner ceases for a period 
of 90 continuous days or more making payments required under the 
mortgage, loan, or advance of credit secured by such a property, or 
rents such a property (or the owner's unit in the case of a two- to four-
family property) for a period longer than one year, the Secretary 
shall provide for the recapture of an amount equal to the lesser of (i) 
the amount of assistance actually received under this section, other 
than any amount provided under subsection (e), or (ii) an amount 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1631 
equal to at least 50 per centum of the net appreciation of the 
property, as determined by the Secretary. For the purpose of this 
paragraph, the term 'net appreciation of the property' means any 
increase in the value of the property over the original purchase price, 
less the reasonable costs of sale, the reasonable costs of improvements 
made to the property, and any increase in the mortgage amount as of 
the time of sale over the original mortgage balance due to the 
mortgage being insured pursuant to section 245. Notwithstanding 
any other provision of law, any such assistance shall constitute a debt 
secured by the property to the extent that the Secretary may provide 
for such recapture. 
"(B) Subparagraph (A) does not apply to any property with respect 
to which there is assumption in accordance with paragraph (1) of this 
subsection or to any property which is subject to a mortgage, loan, or 
other advance of credit insured pursuant to subsection (q).". 
(2) The amendment made by paragraph (1) does not apply to any 
assistance contract under section 235 of the National Housing Act 
entered into pursuant to a commitment issued within 6 months 
following the date of enactment of this Act. 
(c)(1) The Secretary of Housing and Urban Development shall 
conduct a study of the effects which the application of subsection (n) 
of section 235 of the National Housing Act has had or is likely to have 
on the program established by subsection (a) of such section. If the 
program established by subsection (q) of such section is implemented, 
the Secretary shall include in the study an analysis of the effects on 
the subsection (q) program of the application of subsection (n) to such 
program. 
(2) The Secretary shall transmit to the Congress, not later than 
January 1,1982, a report containing the findings and conclusions of 
the study described in paragraph (1). 
"Net 
appreciation of 
the property." 
12USC1715Z-10. 
12 u s e 1715z 
note. 
12 u s e 1715z. 
Study. 
12 u s e 1715z 
note. 
Report to 
eongress. 
SECTION 235(q) PROGRAM 
SEC. 207. Section 235 of the National Housing Act is amended by 1
2 use I7i5z. 
adding at the end thereof the following: 
"(q)(l) Notwithstanding any other provision of this section, except eontracts. 
subsection (n), if the Secretary determines that there is a substantial 
need for emergency stimulation of the housing market, the Secretary 
is authorized to make and enter into contracts to make periodic 
assistance payments, to the extent of not to exceed 75 per centum of 
the authority available pursuant to subsection (h)(1), on behalf of 
homeowners, including owners of manufactured homes, to mortga-
gees or other lenders holding mortgages, loans, or advances of credit 
which meet the requirements of this subsection. The Secretary may 
establish such criteria, terms, and conditions relating to homeowners 
and mortgages, loans, or advances of credit assisted under this 
subsection as the Secretary deems appropriate, consistent with the 
provisions of this subsection. The Secretary is authorized to insure a 
mortgage which meets the requirements of and is to be assisted under 
this subsection. The authority to enter into contracts to provide 
assistance payments and to insure mortgages under this subsection 
shall terminate on June 1, 1981, or at such earlier date as the 
Secretary may deem appropriate, upon a determination by the 
Secretary that the conditions which gave rise to the exercise of 
authority under this subsection are no longer present, except pursu-
ant to a commitment entered into prior to such date. 
79-194 
O—81—pt. 2 
23 : QL3 
94 STAT. 1632 
PUBLIC LAW 96-399—OCT. 8, 1980 
Eligibility 
"(2) Payments under this subsection may be made only on behalf of 
requirements. 
^ homeowner who satisfies such eligibility requirements as may be 
prescribed by the Secretary and who— 
"(A)(i) is a mortgagor under a mortgage which meets the 
requirements of and is insured under this subsection, or (ii) is the 
original owner of a new manufactured home consisting of two or 
more modules and a lot on which the manufactured home is 
12 use 1703. 
situated, where insurance under section 2 of this Act covering 
the loan, advance of credit, or purchase of an obligation repre-
senting such loan or advance of credit to finance the purchase of 
such manufactured home and lot has been granted to the lender 
making such loan, advance of credit, or purchase of an obligation; 
and 
"(B) has a family income, at the time of initial occupancy, 
which does not exceed 130 per centum of the area median income 
for the area (with adjustments for smaller and larger families, 
unusually high or low median family income, or other factors), as 
determined by the Secretary. 
Assistance 
"(3) Assistance payments to a mortgagee or other lender by the 
payments. 
Secretary on behalf of a homeowner shall be made only during such 
time as the homeowner shall continue to occupy the property which 
secures the mortgage, loan, or advance of credit. The Secretary may, 
where a mortgage insured under this subsection has been assigned to 
the Secretary, continue making such assistance payments. 
"(4) The amount of the assistance payments in the case of a 
mortgage shall not at any time exceed the lesser of— 
' (A) the balance of the monthly payment for principal, inter-
est, taxes, insurance, and any mortgage insurance premium due 
under the mortgage remaining unpaid after applying a mini-
mum of 25 per centum of the mortgagor's income, except that the 
Secretary may reduce such per centum of income to the extent he 
deems necessary, but not lower than 20 per centum of the 
mortgagor's income; or 
"(B) the difference between the amount of the monthly pay-
ment for principal, interest, and any mortgage insurance 
premium which would be required if the mortgage were a level 
payment mortgage bearing interest at a rate equal to the 
maximum interest rate which is applicable to level payment 
12 use 1709. 
mortgages insured under section 203(b), other than mortgages 
Post, p. 1652. 
subject to section 3(a)(2) of Public Law 90-301, and the monthly 
payment for principal and interest which the mortgagor would 
be obligated to pay if the mortgage were a level payment 
mortgage bearing interest at the rate of at least ^Vz per centum 
per annum. 
"(5) Assistance payments on behalf of the owner of a manufactured 
home shall not at any time exceed the lesser of^ 
"(A) the balance of the monthly payment for principal, inter-
est, real and personal property taxes, insurance, and insurance 
12 use 1703. 
premium chargeable under section 2 of this Act due under the 
loan or advance of credit remaining unpaid after applying a 
minimum of 25 per centum of the manufactured homeowner's 
income, except that the Secretary may reduce such per centum of 
income to the extent he deems necessary, but not lower than 20 
per centum of the mortgagor's income; or 
"(B) the difference between the amount of the monthly pay-
ment for principal, interest, and insurance premium chargeable 
under section 2 of this Act which the manufactured homeowner 
is obligated to pay under the loan or advance of credit and the 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1633 
Mortgage 
insurance. 
Eligibility 
requirements. 
monthly payment of principal and interest which the owner 
would be obligated to pay if the loan or advance of credit were to 
bear an interest rate determined by the Secretary which shall 
not be less than 12 per centum per annum. 
"(6) The Secretary may include in the payment to the mortgagee or 
other lender such amount, in addition to the amount computed under 
paragraph (4) or (5), as the Secretary deems appropriate to reimburse 
the mortgagee or other lender for its reasonable and necessary 
expenses in handling the mortgage, loan, or advance of credit. 
(7) The Secretary shall prescribe such regulations as the Secretary Regulations, 
deems necessary to assure that the sales price of, or other considera-
tion paid in connection with, the purchase by a homeowner of the 
property with respect to which gissistance payments are to be made is 
not greater than the appraised value as determined by the Secretary. 
"(8) Assistance payments pursuant to paragraph (5) 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 
subsection. 
"(9) The Secretary may, in addition to mortgages insured under 
subsection (i) or (j), insure, upon application by the mortgagee, a 
mortgEige executed by a mortgagor who meets the eligibility require-
ments for assistance pajmients prescribed by the Secretary under 
paragraph (2). Commitments for the insurance of such mortgages 
may be issued by the Secretary prior to the date of their execution or 
disbursement thereon, upon such terms and conditions as the Secre-
tarv may prescribe. 
(10) To be eligible for insurance under this subsection, a mortgage 
shall— 
"(A) be a first lien on real estate held in fee simple, or on a 
leasehold under a lease which meets terms and conditions 
established by the Secretary; 
"(B) have been made to, and be held by, a mortgagee approved 
by the Secretary as responsible and able to service the mortgage 
properly; 
"(C) involve a one- to four-family dwelling which has been 
approved by the Secretary prior to the beginning of construction, 
or if not so approved, has been completed within one year prior to 
the filing of the application for insurance and which has never 
been sold other than to the mortgagor; 
"(D) involve a principal residence the sales price of which does 
not exceed 82 per centum of the applicable msiximum principal 
obligation of a mortgage which may be insured in the area 
pursuant to section 203(bX2), determined without regard to the Post, p. 1654. 
last sentence of such section; 
"(E) have maturity and amortization provisions satisfactory to 
the Secretary; 
"(F) bear interest (exclusive of premium charges for insurance, 
and service charges if any) at not to exceed the applicable 
maximum rate for mortgages insured pursuant to section 203(b); 
"(G) be executed by a mortgagor who shall have paid in cash or 
its equivalent, on account of the property, at least an amount 
equal to 3 per centum of the Secretary's estimate of the cost of 
acquisition; and 
' (H) contain such other terms and conditions as the Secretary 
may prescribe. 
"(11) The Secretary shall, to the extent practicable, insure mort-
gages under this subsection which are secured by properties which 
contribute to the conservation of land and energy resources. 
Land and energy 
conservation. 
94 STAT. 1634 
PUBLIC LAW 96-399—OCT. 8, 1980 
Graduated 
payments. 
12USC1715Z-10. 
Allocation 
system. 
42 u s e 1439. 
Recapture. 
"Net 
appreciation of 
property." 
12USC1715Z-10. 
Income 
recertification. 
"(12) A mortgage to be assisted under this subsection shall, where 
the Secretary deems it appropriate, provide for graduated payments 
pursuant to section 245. 
"(18) The Secretary shall develop and utilize a system to allocate 
assistance under this subsection in a manner which assures a 
reasonable distribution of such assistance among the various regions 
of the country and which takes into consideration such factors as 
population, relative decline in building permits, the need for 
increased housing production, and other factors he deems appropri-
ate. Assistance provided under this subsection shall not be subject to 
section 213 of the Housing and Community Development Act of 1974. 
"(14) Upon the disposition by the homeowner of any property 
assisted pursuant to this subsection, or where the homeowner ceases 
for a period of 90 continuous days or more making payments on the 
mortgage, loan, or advance of credit secured by the property, or rents 
the property (or the owner's unit in the case of a two- to four-family 
residence) for a period longer than one year, the Secretary shall 
provide for the recapture of an amount equal to the lesser of (A) the 
amount of assistance actually received under this subsection, other 
than any amount provided under paragraph (6), or (B) an amount at 
least equal to 50 per centum of the net appreciation of the property, 
as determined by the Secretary. For the purpose of this paragraph, 
the term 'net appreciation of the property' means any increase in the 
value of the property over the original purchase price, less the 
reasonable costs of sale, the reasonable costs of improvements made 
to the property, and any increase in the mortgage balance as of the 
time of sale over the original mortgage balance due to the mortgage 
being insured pursuant to section 245. In providing for such recap-
ture, the Secretary shall include incentives for the homeowner to 
maintain the property in a marketable condition. Notwithstanding 
any other provision of law, any such assistance shall constitute a debt 
secured by the property to the extent that the Secretary may provide 
for such recapture. 
"(15) Procedures shall be adopted by the Secretary for recertifica-
tion of the homeowner's income at intervals of two years (or at 
shorter intervals where the Secretary deems it desirable) for the 
purpose of adjusting the amount of such assistance payments within 
the limits of the formula described in paragraph (4) or (5).". 
CONGREGATE SERVICES PROGRAM AMENDMENTS 
SEC. 208. (a) Section 405(c) of the Housing and Community Develop-
42 use 8004. 
ment Amendments of 1978 is amended by inserting after "for 
assistance" the following: "to provide congregate services to elderly 
residents". 
Qo) Section 405(d) of such Act is amended by inserting after "this 
title" in the first sentence the following: "for the provision of 
congregate services to elderly residents". 
(c) Section 405(e) of such Act is amended— 
(1) by striking out "When" and all that follows through "local 
agency" in paragraph (1) and inserting in lieu thereof the 
following: "A public housing agency or nonprofit corporation 
applying for assistance to provide congregate services to nonel-
derly handicapped residents shall consult with the appropriate 
agency"; and 
(2) by striking out "local" in the first sentence of paragraph (2). 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1635 
SECURITY PROGRAM FOR PUBLIC HOUSING 
SEC. 209. (a) This section may be cited as the "Public Housing Anti-
Crime Amendments of 1980". 
(b) The Congress finds that— 
(1) public housing and surrounding neighborhoods continue to 
suffer substantially from rising crime and the fear of crime; 
(2) funding to provide more security for public housing can be 
used to leverage funding from other sources and thereby produce 
more successful anti-crime efforts; 
(3) the effects of inflation and the need for reductions in the 
budget of the Federal Government result in a need for more 
co-targeting of Federal and local anti-crime resources; 
(4) as authorized by the Public Housing Security Demonstra-
tion Act of 1978, the Urban Initiatives Anti-Crime Program has 
performed in a promising manner; and 
(5) the First Annual Report to Congress of the Urban Initia-
tives Anti-Crime Program and the two General Accounting 
Office reports to Congress on such Program have provided useful 
suggestions which can now be implemented. 
(c) It is, therefore, the purpose of this section to continue the efforts 
of the Urban Initiatives Anti-Crime Program so that more progress 
can be made in providing secure, decent, safe, and sanitary dwelling 
units for low-income and elderly tenants in public housing projects. 
(d) Section 207 of the Housing and Community Development 
Amendments of 1978 is amended— 
(1) by striking out subsection (c)(4) and inserting in lieu thereof 
the following: 
"(4) In carrying out the provisions of this section, the Secretary 
shall coordinate and jointly target resources with other agencies, 
particularly the Law Enforcement Assistance Administration, the 
Department of Health and Human Services, the Department of 
Labor, the Department of Justice, the Department of the Interior, the 
Department of Commerce, the Department of Education, ACTION, 
the Community Services Administration, and State and local 
agencies. 
"(5) In order to assess the impact of crime and vandalism in public 
housing projects, the Secretary may, as part of the Annual Housing 
Survey conducted by the Department of Housing and Urban Develop-
ment or by other means, collect data on crime and vandalism and 
integrate the data collection with the victimization surveys 
undertaken by the Department of Justice and the Department of 
Commerce. 
"(6) The Secretary shall, to the maximum extent practicable, 
utilize information derived from the program authorized by this 
section for assisting in establishing (A) guidelines to be used by public 
housing authorities in determining strategies to meet the security 
needs of tenants of public housing projects assisted under the United 
States Housing Act of 1937, other than under section 8 of such Act, 
and (B) guidelines for improvements relating to the security of 
projects (and the tenants living in such projects) assisted under 
section 14 of such Act."; 
(2) by striking out "this Act" in the first sentence of subsection 
(e) and inserting in lieu thereof "the Housing and Community 
Development Act of 1980"; and 
(3) by adding the following new sentence at the end of subsec-
tion (f): "Of the authority approved in appropriation Acts for the 
purpose of entering into annual contributions contracts under 
Public Housing 
Anti-Crime 
Amendments of 
1980. 
12 u s e 1701Z-6 
note. 
12 u s e 1701Z-6 
note. 
12 u s e 1701Z-6 
note. 
12 u s e 1701Z-6 
note. 
Crime and 
vandalism, data 
collection. 
Guidelines. 
42 u s e 1437 
note, 1437f. 
Ante, p. 1625. 
Contract 
authority. 
94 STAT. 1636 
PUBLIC LAW 96-399—OCT. 8, 1980 
Ante, p. 1624. 
section 5(c) of the United States Housing Act of 1937 with respect 
to the fiscal year beginning on October 1,1980, the Secretary may 
enter into contracts to carry out this section, except that the 
aggregate amount obligated over the duration of such contracts 
may not exceed $10,000,000.". 
42 use 1437c. 
42 use 1437f. 
12 use 1715Z-1. 
42 use 1437f. 
Ante, p. 1624. 
42 use 1437f. 
SOLAR ENERGY SYSTEMS IN PUBLIC HOUSING PROJECTS 
SEC. 210. Section 5 of the United States Housing Act of 1937 is 
amended by adding at the end thereof the following new subsection: 
"(i) In entering into contracts for assistance with respect to newly 
constructed or substantially rehabilitated projects under this section 
(other than for projects assisted pursuant to section 8), the Secretary 
shall require the installation of a passive or active solar energy 
system in any such project where the Secretary determines that such 
installation would be cost effective over the estimated life of the 
system.". 
SECTION 236 AMENDMENT 
SEC. 211. Section 236 of the National Housing Act is amended by 
adding the following new subsection at the end thereof: 
"(q) The Secretary may provide assistance under section 8 of the 
United States Housing Act of 1937 with respect to residents of units 
in a project assisted under this section. In entering into contracts 
under section 5(c) of such Act with respect to the additional authority 
provided on October 1,1980, the Secretary shall not utilize more than 
$20,000,000 of such additional authority to provide assistance for 
elderly or handicapped families which, at the time of applying for 
assistance under such section 8, are residents of a project assisted 
under this section and are expending more than 50 percent of their 
income on rental payments.". 
PAYMENT OF NONFEDERAL SHARE 
SEC. 212. The United States Housing Act of 1937 is amended by 
adding at the end thereof the following new section: 
"PAYMENT OF NONFEDERAL SHARE 
42 use 1437m. 
"SEC. 15. Any of the following may be used as the non-Federal share 
required in connection with activities undertaken under Federal 
grant-in-aid programs which provide social, educational, employ-
ment, and other services to the tenants in a project assisted under 
42 use I437f. 
this Act, other than under section 8: 
"(1) annual contributions under this Act for operation of the 
project; or 
"(2) rental or use-value of buildings or facilities paid for, in 
whole or in part, from development, modernization, or operation 
cost financed with loans or debt service annual contributions 
under this Act.". 
12USei701z-ll. 
MANAGEMENT AND PRESERVATION OF HOUSING AND URBAN 
DEVELOPMENT-OWNED MULTIFAMILY HOUSING PROJECTS 
SEC. 213. (a) Section 203(a) of the Housing and Community Develop-
ment Amendments of 1978 is amended— 
(1) by striking out paragraph (1) and inserting in lieu thereof 
the following: 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1637 
"(1) preserving the housing units so that at least those units 
which are occupied by low- and moderate-income persons or 
which are vacant, at the time of acquisition, are available to and 
affordable by such persons;"; 
(2) by striking out "and" at the end of 
clause (4); 
(3) by striking out the period at the end of clause (5) and 
inserting in Ueu thereof "; and"; and 
(4) by adding at the end thereof the following: 
"(6) maintaining the project for the purpose of providing rental 
or cooperative housing.". 
(b) Section 203(bXl) of such Act is amended by inserting after 
"considering the low- and moderate-income character of the project" 
the following:", including the number of units in the project occupied 
by low- and moderate-income pjersons,". 
(c) Section 203(c) of 
such Act is amended— 
(1) by striking out "and" at the end of 
paragraph (1); 
(2) by striking out the period at the end of paragraph (2) of such 
subsection and inserting in lieu thereof "; and"; and 
(3) by adding at the end thereof the following new paragraph: 
"(3) maintain the project for purposes of providing rental or 
cooperative housing for the longest feasible period.". 
(d) Subparagraphs (B) and (C) of section 203(d)(2) of such Act are 
amended by inserting "except for tenants of above-moderate 
income," before "to". 
(e) Section 203(f) of such Act is amended to read as follows: 
"(f) For the purpose of this section, the term 'multifamily housing 
project' means any multifamily rental housing project which is, or 
prior to acquisition by the Secretary was, assisted or insured under 
the National Housing Act, or was subject to a loan under section 202 
of the Housing Act of 1959 or section 312 of the Housing Act of 1964, 
or which is acquired by the Secretary pursuant to any other provision 
of law.". 
RESTRICTION ON USE OP ASSISTED HOUSING 
SEC. 214. (a) Notwithstanding any other provision of law, the 
Secretary of Housing and Urban Development may not make finan-
cial assistgmce available for the benefit of any nonimmigrant student-
alien. 
(b) For purposes of this section— 
(1) the term "financial £issistance" means financial assistance 
made available pursuant to the United States Housing Act of 
1937, section 235 or 236 of the National Housing Act, or section 
101 of the Housing and Urban Development Act of 1965; and 
(2) the term "nonimmigrant student-alien" means (A) an alien 
having a residence in a foreign country which he or she has no 
intention of abandoning, who is a bona fide student qualified to 
pursue a full course of study and who is admitted to the United 
States temporarily and solely for purpose of pursuing such a 
course of study at an established institution of learning or other 
recognized place of study in the United States, particularly 
designated by him or her and approved by the Attorney General 
after consultation with the Department of Education of the 
United States, which institution or place of study shall have 
agreed to report to the Attorney General the termination of 
attendance of each nonimmigrant student, and if any such 
institution of learning or place of study fails to make reports 
promptly the approval shall be withdrawn, and (B) the alien 
12USC1701Z-11. 
"Multifamily 
housing project. 
12 u s e 1701. 
12 u s e 1701q. 
42 u s e 1452b. 
Nonimmigrant 
student aliens. 
42 u s e 1436a. 
Definitions. 
42 u s e 1437 
note, 
12 u s e 1715z, 
1715Z-1. 
12 u s e 1701s, 42 
u s e 1451, 1465. 
94 STAT. 1638 
PUBLIC LAW 96-399—OCT. 8, 1980 
spouse and minor children of any such alien if accompanying 
him or her or following to join him or her. 
Transmittal to 
Congress. 
42 u s e 1436b. 
"Federally 
assisted housing 
programs." 
42 u s e 1437 
note, 12 u s e 
1715z, 1715Z-1. 
12 u s e 1701s, 42 
u s e 1451, 1465. 
12 u s e 1701q. 
REPORT ON HOUSING ASSISTANCE BLOCK GRANT PROGRAM 
SEC. 215. The Secretary shall conduct a comprehensive examina-
tion of the feasibility of a housing assistance block grant program, 
including the feasibility of replacing the categorical housing assist-
ance programs proposed to be utilized in fiscal year 1982, and shall 
transmit to the Congress a report thereon not later than March 31, 
1981. Such examination shall include, but not be limited to— 
(1) simplified and expedited application and review procedures; 
(2) an equitable allocation formula which reflects both current 
program experience and identified needs; and 
(3) such other recommendations as the Secretary deems 
appropriate. 
FINANCIAL ASSISTANCE IN IMPACTED AREAS 
SEC. 216. The Secretary of Housing and Urban Development shall 
not exclude from consideration for financial assistance under feder-
ally assisted housing programs proposals for housing projects solely 
because the site proposed is located within an impacted area. For the 
purposes of this section, the term "federally assisted housing pro-
grams" means any program authorized by the United States Housing 
Act of 1937, sections 235 and 236 of the National Housing Act, section 
101 of the Housing and Urban Development Act of 1965, or section 
202 of the Housing Act of 1959. 
TITLE III—PROGRAM AMENDMENTS AND EXTENSIONS 
12 u s e 1703. 
12 u s e 1715h. 
12 u s e 1715Z. 
12 u s e 1715z. 
12 u s e 1715Z-1. 
12 u s e 1715Z-9. 
12 u s e 1715Z-10. 
12 u s e 1748h-l. 
EXTENSION OF FEDERAL HOUSING ADMINISTRATION MORTGAGE 
I N S U R A N C E PROGRAMS 
SEC. 301. (a) Section 2(a) of the National Housing Act is amended by 
striking out "October 16,1980" in the first sentence and inserting in 
lieu thereof "October 1,1981". 
(b) Section 217 of such Act is amended by striking out "October 15, 
1980" and inserting in lieu thereof "September 30, 1981". 
(c) Section 221(f) of such Act is amended by striking out "October 15, 
1980"in the fifth sentence and inserting in lieu thereof "September 30, 
1981". 
(d) Section 235(m) of 
such Act is amended by striking out "October 15, 
1980" and inserting in lieu thereof "September 30, 1981". 
(e) Section 236(n) of such Act is amended by striking out "October 15, 
1980" and inserting in lieu thereof "September 30, 1981". 
(f) Section 244(d) of such Act is amended by— 
(1) striking out "October 15, 1980" in the first sentence and 
inserting in lieu thereof "September 30,1981"; and 
(2) striking out "October 16, 1980" in the second sentence and 
inserting in lieu thereof "October 1,1981". 
(g) Section 245(a) of such Act is amended by striking out 
"October 15, 1980" where it appears and inserting in lieu thereof 
"September 30,1981". 
(h) Section 809(f) of such Act is amended by striking out 
"October 15, 1980" in the second sentence and inserting in lieu 
thereof "September 30,1981". 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1639 
(i) Section 810(k) of such Act is amended by striking out 12 use i748h-2. 
"October 15, 1980" in the second sentence and inserting in lieu 
thereof "September 30,1981". 
(j) Section 1002(a) of such Act is amended by striking out i2USCi749bb. 
"October 15, 1980" in the second sentence and inserting in Ueu 
thereof "September 30,1981". 
(k) Section 1101(a) of such Act is amended by striking out 12 use I749aaa. 
"October 15, 1980" in the second sentence and inserting in lieu 
thereof "September 30, 1981". 
FLEXIBLE INTEREST RATE AUTHORITY 
3(a) of Public Law 90-301 is 
16, 1980" and inserting in 
amended by 
lieu thereof 
SEC. 302. (a) Section 
striking out "October 
"October 1, 1981". 
(b) Section 3(a) of such Public Law is amended— 
(1) by inserting after "finds necessary to meet the mortgage 
market," in the first sentence thereof the following: "taking into 
consideration the 3delds on mortgages in the primary and second-
ary markets,"; 
(2) by inserting after "finds necessary to meet the loan 
market" in the second sentence the following: ", taking into 
consideration the yields on home improvement and manufac-
tured home loans"; and 
(3) by adding the following new sentence at the end thereof: "In 
setting such rates, the Secretary shall seek to minimize uncer-
tainty and speculation in connection with mortgage and loan 
transactions insured under the National Housing Act, and when 
effective rates on home mortgages and other such loans are 
rising, the Secretary shall exercise the authority to set the 
interest rates for such mortgage and loan insurance programs 
with sufficient frequency to promote the objective that discount 
points payable in connection with mortgages and lo£ms insured 
pursuant to such progremas should be minimized.". 
12 u s e 1709-1. 
12 u s e 1701. 
RESEARCH AUTHORIZATIONS 
SEC. 303. The second sentence of section 501 of the Housing and 
Urban Development Act of 1970 is amended by striking out "and not 12 use I70iz-l. 
to exceed $50,300,000 for the fiscal year 1980" and inserting in lieu 
thereof "not to exceed $50,300,000 for the fiscal year 1980, and not to 
exceed $51,000,000 for the fiscal year 1981". 
AUTHORIZATION FOR FLOOD INSURANCE STUDIES 
SEC. 304. Section 1376(c) of the National Flood Insurance Act of 
1968 is amended by striking out "and not to exceed $74,000,000 for the 42 use 4127. 
fiscal year 1980" and inserting in lieu thereof "not to exceed 
$74,000,000 for the fiscal year 1980, and not to exceed $61,600,000 for 
the fiscal year 1981". 
FEDERAL HOUSING ADMINISTRATION GENERAL INSURANCE FUND 
SEC. 305. Section 519(f) of the National Housing Act is amended by 12 use I735c. 
striking out all that follows "General Insurance Fund not to exceed" 
and inserting in lieu thereof "$1,738,000,000.". 
94 STAT. 1640 
PUBLIC LAW 96-399—OCT. 8, 1980 
DEFINITION OF MORTGAGE UNDER THE NATIONAL HOUSING ACT 
1
2 use 1707. 
SEC. 306. Section 201(a) of the National Housing Act is amended by 
striking out "having a period of not less than fifty years to run from 
the date the mortgage was executed" and inserting in lieu thereof 
"having a period of not less than ten years to run beyond the 
maturity date of 
the mortgage". 
42 u s e 1500. 
REUEF OF THE CITY OF SPRINGFIELD, ILLINOIS 
SEC. 307. Notwithstanding the provisions of title VII of the Housing 
Act of 1961 or any other law, the transactions under which land 
acquired by the city of Springfield, Illinois, in connection with Open-
Space Projects Numbered I11.-0SC-171 (DL) and Numbered 
I11.-OSC-246 (DL) was transferred by such city to the United States 
Department of the Interior for the Lincoln Home National Historic 
Site shall be deemed to have been made in accordance with all 
provisions of title VII of such Act and of any other law and with any 
regulations or other requirements in implementation thereof. 
12 u s e 1703. 
12 u s e 1701 
note. 
12 u s e 1715z. 
MANUFACTURED HOUSING 
SEC. 308. (a) Section 20D) of the National Housing Act is amended— 
(1) by striking out "$18,000 ($27,000 in the case of a mobile 
home containing two or more modules)" in the first sentence and 
inserting in lieu thereof "$20,000 ($30,000 in the case of a 
manufactured home composed of two or more modules)"; 
(2) by striking out subparagraph (A) of the second paragraph 
and inserting in lieu thereof the following: 
"(A) involve an amount not exceeding $26,675 ($36,675 in the 
case of a manufactured home composed of more than two 
modules); and"; 
(3) by striking out subparagraph (A) of the third paragraph and 
inserting in lieu thereof the following: 
"(A) involve an amount not exceeding $30,550 ($40,550 in the 
case of a manufactured home composed of two or more modules); 
and"; and 
(4) by striking out "$6,250 in the case of an undeveloped lot, or 
(ii) $9,375" in the fourth paragraph and inserting in lieu thereof 
"$6,950 in the case of an undeveloped lot, or (ii) $10,425". 
(b) Section 2(b) of the National Housing Act is amended by adding 
the following new sentence at the end of the last paragraph: In other 
areas where there are high land costs or high set-up costs, the 
Secretary may, by regulation, increase any such dollar amount 
limitation to— 
"(1) $32,500 (or $43,000 with respect to a manufactured home 
composed of two or more modules) in the case of a manufactured 
home and an undeveloped lot; 
"(2) $38,100 (or $49,000 with respect to a manufactured home 
composed of two or more modules) in the case of a manufactured 
home and a developed lot; and 
"(3) $11,750 (or $17,450 with respect to a developed lot) in the 
case of a lot in which to place a manufactured home.". 
(c)(1) The National Housing Act is amended by striking out "mobile 
home" each place it appears and inserting in lieu thereof "manufac-
tured home". 
(2) Section 235(a)(2)(B) of such Act is amended by striking out 
"mobile homeowner" and "mobile homeowner's" and inserting in 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1641 
lieu thereof "manufactured homeowner" and "manufactured home-
owner's" resDectivelv. 
(3) The United States Housing Act of 1937 is amended by striking 42 use 1437. 
out "mobile home" each place it appears and inserting in lieu thereof 
"manufactured home". 
(4) Title VI of the Housing and Community Development Act of 
1974 is amended by striking out "Mobile Home" each place it 42 use 5401. 
appears, other than in section 601, and inserting in lieu thereof 
"Manufactured Home" and by striking out "mobile home" each place 
it appears and inserting in lieu thereof "manufactured home". 
(5) Section 601 of the Housing and Community Development Act of 
1974 is amended by striking out "Mobile Home and inserting in lieu 42 use 5401 
thereof "Manufactured Housing". 
"
°
*
® 
(6) Section 501(e)(4) of Public Law 96-221 is amended by striking out Ante, p. 163. 
"mobile home" and inserting in lieu thereof "manufactured home". 
(7) In adopting regulations and procedures in accordance with this 42 use 5
4
2
4 
subsection, the Secretary of Housing and Urban Development shall note. 
have discretion to take actions in a manner which he deems neces-
sary to insure that the public is fully aware of the distinctions 
between the various types of factory-built housing. 
(d) Section 603(6) of the Housing and Community Development Act 
of 1974 is amended— 
42 use 5402. 
(A) by striking out "is eight body feet or more in width and is 
thirty-two body feet or more in length" and inserting in lieu 
thereof ", in the traveling mode, is eight body feet or more in 
width or forty body feet or more in length, or, when erected on 
site, is three hundred twenty or more square feet"; and 
(B) by inserting the following after the semicolon at the end 
thereof: "except that such term shall include any structure 
which meets all the requirements of this paragraph except the 
size requirements and with respect to which the manufacturer 
voluntarily files a certification required by the Secretary and 
complies with the standards established under this title;". 
(e) Not later than January 1, 1982, the Secretary of Housing and Data collection 
Urban Development shall develop a procedure for collecting and fo U^CTTOS^ 
regularly reporting data on the mean and median sales price for new ^^^ 
manufactured homes, and, where available, data on the mean and 
median sales price for manufactured home lots and combination new 
manufactured home and lot packages. Such reports shall contain, to 
the maximum extent feasible, sales price information for the Nation, 
each census region, each State on an annual basis, and selected 
standard metropolitan statistical areas having sufficient activity on 
an annual basis. 
EUMINATION OF SECTION 8 CONDITION OF GNMA PURCHASE OF 
CERTAIN MULTIFAMILY MORTGAGES 
SEC. 309. The second sentence of section 302(b)(1) of the National 
Housing Act is amended— 
1
2 use 1717. 
(1) by striking out "(1)"; and 
(2) by striking out ", and (2)" and all that follows through 
"1937". 
INCREASE IN CERTAIN MAXIMUM MORTGAGE AMOUNTS FOR SOLAR 
ENERGY SYSTEMS AND ENERGY CONSERVING MEASURES 
SEC. 310. (a) The last sentence of section 207(c)(3) of the National 
Housing Act is amended by striking out "therein" and inserting in 1
2 use 1713. 
94 STAT. 1642 
PUBLIC LAW 96-399—OCT. 8, 1980 
42 use 8211. 
12 use 1715e. 
12 use 1703. 
42 u s e 8211. 
12 use 1715k. 
12 use 1703. 
42 use 8211. 
12 use 1715Z. 
42 use 8211. 
12 use 1715v. 
42 use 8211. 
lieu thereof "or residential energy conservation measures (as defined 
in section 210(11) (A) through (G) and (I) of Public Law 95-619) in 
cases where the Secretary determines that such measures are in 
addition to those required under the minimum property standards 
and will be cost-effective over the life of the measure therein". 
(b) Section 213 of such Act is amended by adding at the end thereof 
the following: 
"(p) Notwithstemding any other provision of this section, the 
project mortgage amounts which may be insured under this section 
may be increased by up to 20 per centum if such increase is necessary 
to account for the increased cost of the project due to the installation 
of a solar energy system (as defined in subparagraph (3) of the last 
paragraph of section 2(a) of this Act) or residential energy conserva-
tion measures (as defined in section 210(11) (A) through (G) and (I) of 
Public Law 95-619) in cases where the Secretary determines that 
such measures are in addition to those required under the minimum 
property standards and will be cost-effective over the life of the 
measure therein.". 
(c) Section 220(dX3)(BXiii) of such Act is amended by inserting 
before the semicolon at the end thereof the following: ": And provided 
further. That the Secretary may further increase any of the dollar 
amount limitations which would otherwise apply for the purpose of 
this clause by not to exceed 20 per centum if such increase is 
necessary to account for the increased cost of the project due to the 
installation of a solar energy system (as defined in subparagraph (3) 
of the last paragraph of section 2(a) of this Act) or residential energy 
conservation measures (as defined in section 210(11) (A) through (G) 
and (I) of Public Law 95-619) in cases where the Secretary determines 
that such measures are in addition to those required under the 
minimum property standards and will be cost-effective over the life of 
the measure therein". 
(d) Section 221 of such Act is amended by adding at the end thereof 
the following new subsection: 
"(k) With respect to any project insured under subsection (d)(3) or 
(d)(4), the Secretary may further increase the dollar amount limita-
tions which would otherwise apply for the purpose of those subsec-
tions by up to 20 per centum if such increase is necessary to account 
for the increased cost of the project due to the installation of a solar 
energy system (as defined in subparagraph (3) of the last paragraph of 
section 2(a) of this Act) or residential energy conservation measures 
(as defined in section 210(11) (A) through (G) and (I) of Public Law 
95-619) in cases where the Secretary determines that such measures 
are in addition to those required under the minimum property 
standards and will be cost-effective over the life of the measure 
therein.". 
(e) Section 231(c)(2) of such Act is amended by inserting immedi-
ately before the semicolon at the end thereof ": Provided, That the 
Secretary may further increase the dollar amount limitations which 
would otherwise apply for the purpose of this section by not to exceed 
20 per centum if such increase is necessary to account for the 
increased cost of the project due to the installation of a solar energy 
system (as defined in subparagraph (3) of the last paragraph of 
section 2(a) of this Act) or residential energy conservation measures 
(as defined in section 210(11) (A) through (G) and (I) of Public Law 
95-619) in cases where the Secretary determines that such measures 
are in addition to those required under the minimum property 
standards and will be cost-effective over the life of the measure 
therein". 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1643 
(f) Section 232(d)(2) of such Act is amended to read as follows: 
"(2) The mortgage shall involve a principal obligation in an 
amount not to exceed 90 per centum of the estimated value of the 
property or project, including— 
"(A) equipment to be used in the operation of the home or 
facility or combined home and facility when the proposed 
improvements are completed and the equipment is installed; 
or 
"(B) a solar energy system (as defined in subparagraph (3) 
of the last paragraph of section 2(a) of this Act) or residential 
energy conservation measures (as defined in section 210(11) 
(A) through (G) and (I) of Public Law 95-619) in cases where 
the Secretary determines that such measures are in addition 
to those required under the minimum property standards 
and will be cost-effective over the life of the measure.". 
(g) Section 234 of such Act is amended by adding at the end thereof 
the following new subsection: 
"(j) The Secretary may further increase the dollar amount limita-
tions which would otherwise apply under subsection (e) by not to 
exceed 20 per centum if such increase is necessary to account for the 
increased cost of a project due to the installation of a solar energy 
system (as defined in subparagraph (3) of the last paragraph of 
section 2(a) of this Act) or residential energy conservation measures 
(as defined in section 210(11) (A) through (G) and (I) of Public Law 
95-619) in cases where the Secretary determines that such measures 
are in addition to those required under the minimum property 
standards and will be cost-effective over the life of the measure 
therein.", 
(h) Section 242(d)(2) of such Act is amended to read as follows: 
"(2) The mortgage shall involve a principal obligation in an 
amount not to exceed 90 per centum of the estimated replace-
ment cost of the property or project including— 
"(A) equipment to be used in the operation of the hospital, 
when the proposed improvements are completed and the 
equipment is installed; and 
"(B) a solar energy system (as defined in subparagraph (3) 
of the last paragraph of section 2(a) of this Act) or residential 
energy conservation measures (as defined in section 210(11) 
(A) through (G) and (I) of Public Law 95-619) in cases where 
the Secretary determines that such measures are in addition 
to those required under the minimum property standards 
and will be cost-effective over the life of the measure.", 
(i) Section 1101(c)(2) of such Act is amended by inserting immedi-
ately after "the boundaries of the property," the following: "a solar 
energy system (as defined in subparagraph (3) of the last paragraph of 
section 2(a) of this Act) or residential energy conservation measures 
(as defined in section 210(11) (A) through (G) and (I) of Public Law 
95-619) in cases where the Secretary determines that such measures 
are in addition to those required under the minimum propertv 
standards and will be cost-effective over the life of the measure, . 
12 use 1715w. 
12 use 1703. 
42 use 8211. 
12 use 1715y. 
12 use 1703. 
42 use 8211. 
12 use 1715Z-7. 
12 use 1703. 
42 use 8211. 
12 use 1749aaa. 
12 use 1703. 
42 use 8211. 
SECTION 220 MORTGAGE INSURANCE IN AREAS OF CONCENTRATED 
DEVELOPMENT ACTTVITIES 
SEC. 311. (a) Section 220(d)(lXA) of the National Housing Act is 
amended by inserting after "pursuant to Section 117 of the Housing 
Act of 1949" the following: ", or (v) an area, designated by the 
Secretary, where concentrated housing, physical development, and 
public service activities are being or will be carried out in a coordi-
12 use 1715k. 
42 use 1468. 
94 STAT. 1644 
PUBLIC LAW 96-399—OCT. 8, 1980 
nated manner, pursuant to a locally developed strategy for neighbor-
hood improvement, conservation, or preservation". 
1
2 use 1715k. 
(b) Section 220(d)(3)(B)(iv) of such Act is amended by inserting after 
"urban renewal plan" the following: "or, where appropriate, with the 
locally developed strategy for neighborhood improvement, conserva-
tion or preservation". 
REPORT ON HOUSING PRODUCTION GOALS 
SEC. 312. Section 1603 of the Housing and Urban Development Act 
42 use 1441c. 
of 1968 is amended— 
(1) by striking out "January 20 of each year" and inserting in 
lieu thereof "March 15 of each year beginning with calendar year 
1981"; 
(2) by inserting after "current year" in paragraph (2) the 
following: "and sets general objectives for such activity during 
the next year"; 
(3) by striking out "obiective" in paragraph (3) and inserting in 
lieu thereof "objectives ; and 
(4) by inserting after "current year" in paragraph (7) the 
following: "and, as feasible, the next year". 
12 u s e 1717. 
"eonventional 
mortg£iges." 
26 u s e 216. 
Maximum 
principal 
obligation, 
limitation. 
Ante, p. 1641. 
12 u s e 1454. 
FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN 
MORTGAGE CORPORATION MORTGAGE AMENDMENTS 
SEC. 313. (a) Section 302(b)(2) of the National Housing Act is 
amended by striking out the last sentence and inserting in lieu 
thereof the following: "For the purpose of this section, the term 
'conventional mortgages' shall include a mortgage, lien, or other 
security interest on the stock or membership certificate issued to a 
tenant-stockholder or resident-member of a cooperative housing 
corporation, as defined in section 216 of the Internal Revenue Code of 
1954, and on the proprietary lease, occupancy agreement, or right of 
tenancy in the dwelling unit of the tenant-stockholder or resident-
member in such cooperative housing corporation. The corporation 
shall establish limitations governing the maximum principal obliga-
tion of conventional mortgages purchased by it. Such limitations 
shall not exceed $93,750 for a mortgage secured by a single-family 
residence, $120,000 for a mortgage secured by a two-family residence, 
$145,000 for a mortgage secured by a three-family residence, and 
$180,000 for a mortgage secured by a four-family residence, except 
that such maximum limitations shall be adjusted effective January 1 
of each year beginning with 1981. Each such adjustment shall be 
made by adding to each such amount (as it may have been previously 
adjusted) a percentage thereof equal to the percentage increase 
during the twelve-month period ending with the previous October in 
the national average one-family house price in the monthly survey of 
all major lenders conducted by the Federal Home Loan Bank Board. 
With respect to mortgages secured by property comprising five or 
more family dwelling units, such limitations shall not exceed 125 per 
centum of the limitations established under section 207(c)(3) of this 
Act. The foregoing limitations may be increased by not to exceed 50 
per centum with respect to properties located in Alaska, Guam, and 
Hawaii.". 
(b) Section 305(a)(2) of the Federal Home Loan Mortgage Corpora-
tion Act is amended by striking out the last sentence and inserting in 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1645 
lieu thereof the following: "The Corporation shall establish limita- Conventional 
tions governing the maximum principal obligation of conventional ™°xi^um' 
mortgages purchased by it. Such limitations shall not exceed $93,750 principal 
for a mortgage secured by a single-family residence, $120,000 for a obligation, 
mortgage secured by a two-family residence, $145,000 for a mortgage 
secured by a three-family residence, and $180,000 for a mortgage 
secured by a four-family residence, except that such maximum 
limitations shall be adjusted effective January 1 of each year begin-
ning with 1981. Each such adjustment shall be made by adding to 
each such amount (as it may have been previously adjusted) a 
percentage thereof equal to the percentage increase during the 
twelve-month period ending with the previous October in the 
national average one-family house price in the monthly survey of all 
major lenders conducted by the Federal Home Loan Bank Board. 
With respect to mortgages of property comprising five or more 
family dwelling units, such limitations shall not exceed 125 per 
centum of the limitations established under section 207(c)(3) of the 
National Housing Act. The foregoing limitations may be increased Ante, p. 1641. 
by not to exceed 50 per centum with respect to properties located in 
Alaska, Guam, and Hawaii.". 
SUPPLEMENTARY LOANS 
SEC. 314. Section 241(e)(1) of the National Housing Act is amended 
by inserting after "multifamily housing project" the following: "if 
such meters are purchased or installed in connection with other 
energy conserving improvements or with a solar energy system or the 
project meets minimum standards of energy conservation established 
by the Secretary,". 
12 u s e 1715Z-6. 
NEIGHBORHOOD REINVESTMENT CORPORATION 
SEC. 315. Title VI of the Housing and Community Development 
Amendments of 1978 is amended— 
(1) by striking out "National" in section 603(a); 
42 USC 8102. 
(2) by striking out "supervising" in the first sentence of section 
606(a)(1) and inserting in lieu thereof the word "monitoring"; and 42 USC 8105. 
(3) by striking out "and not to exceed $12,000,000 for fiscal year 
1980" in section 608(a) and inserting in lieu thereof the following: 42 USC 8107. 
"not to exceed $12,000,000 for fiscal year 1980, and not to exceed 
$13,426,000 for fiscal year 1981". 
MUTUAL HOUSING ASSOCIATION DEMONSTRATION 
SEC. 316. (a) The Congress— 
42 USC 8106 
(1) recognizes the significant potential of mutual housing ^°^-
associations for helping make multifamily housing in the United 
States more affordable; and 
(2) commends and encourages the efforts being made in connec-
tion with the national demonstration program of mutual housing 
associations being undertaken by the Neighborhood Reinvest-
ment Corporation and the National Consumer Cooperative Bank 
with the cooperation of the Department of Housing and Urban 
Development. 
(b) The Neighborhood Reinvestment Corporation, in conjunction Report to 
with the National Consumer Cooperative Bank and the Secretary of 
Housing and Urban Development, shall transmit a report to the 
Congress on the findings and conclusions reached as a result of the 
demonstration program described in subsection (a)(2), together with 
legislative recommendations, not later than September 30, 1981. 
94 STAT. 1646 
PUBLIC LAW 96-399—OCT. 8, 1980 
Study; report to 
Congress. 
12 u s e 1715y. 
38 u s e 1801 et 
seq. 
12 u s e 1701q. 
COLLECTION OF DEUNQUENCY DATA 
SEC. 317. The Secretary of Housing and Urban Development shall 
conduct a study to determine the feasibility of collecting data pertain-
ing to all home mortgage delinquencies on an appropriate regional 
basis, and shall, as soon as practicable, but not later than April 1, 
1981, transmit to the Congress a report containing the results of such 
study. 
AMENDMENT TO SECTION 234 
SEC. 318. The first sentence of section 234(c) of the National 
Housing Act is amended by inserting after "Act)" the following: "or 
the project was approved for a guarantee, insurance, or a direct loan 
under chapter 37 of title 38, United States Code". 
MODERATE REHABIUTATION OF SMALL GROUP HOMES AND SIMILAR 
FACIUTIES FOR THE HANDICAPPED 
SEC. 319. Section 202(d)(3) of the Housing Act of 1959 is amended by 
adding at the end thereof the following: "In the case of housing to 
meet the needs of handicapped (primarily nonelderly) persons, such 
term also means the cost of acquiring existing housing and related 
facilities, the cost of rehabilitation, alteration, conversion, or 
improvement, including the moderate rehabilitation, thereof, and the 
cost of the land on which the housing and related facilities are 
located.". 
TIME OF PAYMENT OF PREMIUM CHARGES 
SEC. 320. Title V of the National Housing Act is amended by adding 
the following new section at the end thereof: 
12 u s e 1735f-8. 
12 u s e 1702, 
1707, 1724, 1747, 
1748, 1750, 
1749aa, 1749aaa. 
12 u s e 1709. 
12 u s e 1710. 
TIME OF PAYMENT OF PREMIUM CHARGES 
"SEC. 530. In carrying out the provisions of titles I, II, IV, VII, VIII, 
IX, X, and XI pertaining to the payment of loan or mortgage 
insurance premium charges by a financial institution, other mortga-
gees, or agent thereof to the Federal Government in connection with a 
loan or mortgage insurance program established pursuant to any of 
these titles, the Secretary shall require that payment of such premi-
ums be made promptly upon their receipt from the borrower; except 
that the Secretary may approve payment of such premiums within 
twenty-four months of such receipt if the financial institution, 
mortgagee, or agent thereof pays interest, at a rate specified by the 
Secretary, to the insurance fund for the period beginning twenty days 
after receipt from the borrower and ending upon payment of the 
premiums to the Federal Government.". 
FORECLOSURE OF LOANS UNDER THE SECTION 203 (k) REHABILITATION 
LOAN INSURANCE PROGRAM 
SEC. 321. Section 203(k)(5) of the National Housing Act is amended 
by striking out the second sentence and inserting in lieu thereof the 
following: "Insurance benefits paid with respect to loans secured by a 
first mortgage and insured under this subsection shall be paid in 
accordance with section 204, except that all references in section 204 
to the Mutual Mortgage Insurance Fund shall be construed as 
referring to the General Insurance Fund. Insurance benefits paid 
with respect to loans secured by a mortgage other than a first 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1647 
mortgage and insured under this subsection shall be paid in accord-
ance with paragraphs (6) and (7) of section 220(h), except that i2USCi7l5k. 
reference to 'this subsection' in such paragraphs shall be construed as 
referring to this subsection.". 
VALLEY HOMES MUTUAL HOUSING CORPORATION 
SEC. 322. (a) Notwithstanding any other provision of law, Valley 
Homes Mutual Housing Corporation, obligor on a note and mortgage 
secured by a multifamily housing project located at 972 Medosch 
Avenue, Lincoln Heights, Ohio and held by the Government National 
Mortgage Association, is hereby relieved of all liability to the Govern-
ment for the outstanding principal balance on the above mentioned 
mortgage; for the amount of accrued out unpaid interest thereon; and 
for taxes, insurance, and other charges previously paid by the 
Government. This release from liability is in full settlement of all 
present and any future claims Valley Homes Mutual Housing Corpo-
ration, its successors and assigns may have against the United States 
or any of its Agencies concerning the mortgagor's purchase of the 
mortgaged premises from the Public Housing Administration in 1954. 
OJ) The President of the Government National Mortgage Associ-
ation is authorized and directed to release Valley Homes Mutual 
Housing Corporation from its liability to the Association and to 
discharge the mortgage note secured by the mortgage on the multi-
family housing project located at 972 Medosch Avenue, Lincoln 
Heights, Ohio. 
(c) No amount in excess of ten per centum of the principal and 
interest due upon the mortgage released under subsection 0?) of this 
provision shall be paid to or received by an attorney or other person 
in consideration for services rendered in connection with the claims 
of Valley Homes Mutual Housing Corporation against the United 
States or any of its Agencies referred to in subsection (a) of this 
provision. Any person who violates this subsection shall be fined not 
more than $1,000. 
Penalty. 
STUDY OF FACTORY-BUILT HOUSING 
SEC. 323. The Secretary of Housing and Urban Development shall 
study the feasibility of utilizing factory-built and other appropriate 
types of housing (other than the traditional type of site-built housing), 
to the extent practicable, in carrying out housing programs for 
Indians and Alaskan Native, and shall, not later than eighteen 
months after the date of enactment of this Act, transmit a report to 
the Congress containing the findings and conclusions of such study, 
including a comparison of the costs and benefits of utilizing the 
traditional type of site-built housing and of utilizing other types of 
housing in situations in which either type of housing could be used. 
Report to 
Congress. 
12 u s e 1715d 
note. 
USURY PROVISIONS 
SEC. 324. (a) Section 501(a)(1)(A) of the Depository Institutions 
Deregulation and Monetary Control Act of 1980 is amended— 
(1) by striking out "stock" the first place it appears and 
inserting in lieu thereof "all stock allocated to a dwelling unit"; 
and 
(2) by striking out "where the loan, mortgage, or advance is 
used to finance the acquisition of such stock". 
Ante, p. 161. 
79-194 0—81 —pt. 2 
24 : QL3 
94 STAT. 1648 
PUBLIC LAW 96-399—OCT. 8, 1980 
Ante, p. 164. 
(b) Section 511 of such Act is amended by redesignating subsection 
(b) as subsection (c) and by inserting after subsection (a) the following: 
Definitions. 
' 
'(b) For the purpose of this part— 
"(1) the term 'loan' includes all secured and unsecured loans, 
credit sales, forbearances, advances, renewals or other exten-
sions of credit made by or to any person or organization for 
business or agricultural purposes; 
"(2) the term 'interest' includes any compensation, however 
denominated, for a loan; 
"(3) the term 'organization' means a corporation, government 
or governmental subdivision or agency, trust, estate, partner-
ship, cooperative, association, or other entity; and 
"(4) the term 'person' means a natural person or organiza-
tion.". 
Ante, p. 164. 
(c)(1) Section 512 of such Act is amended— 
(A) by inserting "(a)" after "SEC. 512."; and 
(B) by adding at the end thereof the following: 
"(b) A loan shall be deemed to be made during the period described 
in subsection (a) if such loan— 
"(1)(A) is funded or made in whole or in part during such 
period, regardless of whether pursuant to a commitment or other 
agreement therefor made prior to April 1,1980; 
"(B) was made prior to or on April 1, 1980, and bears or 
provides for interest during such period on the outstanding 
amount thereof at a variable or fluctuating rate; or 
"(C) is a renewal, extension, or other modification during such 
period of any loan, if such renewal, extension, or other modifica-
tion is made with the written consent of any person obligated to 
repay such loan; and 
"(2)(A) is an original principal amount of $25,000 or more 
($1,000 or more on or after the date of enactment of the Housing 
Ante, p. 1614. 
and Community Development Act of 1980); or 
"(B) is part of a series of advances if the aggregate of all sums 
advanced or agreed or contemplated to be advanced pursuant to 
a commitment or other agreement therefor is $25,000 or more 
($1,000 or more on or after the date of enactment of the Housing 
and Community Development Act of 1980).". 
Effective date. 
(2) The amendments made by paragraph (1) take effect on April 1, 
12 u s e 86a note. 
1980. 
Ante, p. 164. 
(d) Part B of title V of such Act, other than section 512(b), is 
amended by striking out "$25,000" wherever it appears and inserting 
in lieu thereof "$1,000". 
Ante, p. 161. 
(e) Section 501(a)(l)(C)(vi) of such Act is amended by inserting 
before the period at the end thereof the following: ", and any 
individual who finances the sale or exchange of residential real 
property which such individual owns and which such individual 
occupies or has occupied as his principal residence". 
LIQUID, HIGHLY RATED CORPORATE DEBT OBLIGATIONS 
SEC. 325. (a) The first sentence of section 5A(b)(l) of the Federal 
Ante, p. 139, 
Home Loan Bank Act is amended— 
(1) by striking out "and" before "(E)"; 
(2) by redesignating clause (E) as subparagraph (E); 
(3) by striking out the period at the end of sulDparagraph (E) 
and inserting in lieu thereof a semicolon; and 
(4) by adding at the end thereof the following: 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1649 
"(F) to such extent as the Board may approve as liquid, highly 
rated corporate debt obligations with 3 years or less remaining 
until maturity; and 
"(G) to such extent as the board may so approve, highly rated 
commerci£d paper with 270 days or less remaining until 
maturity.". 
(b) Section 916 of the Housing and Urban Development Act of 1970 
is amended by adding at the end thereof the following sentence: "In 
addition, to such extent as the Federal Home Loan Bsuik Board may 
so approve, unpledged deposits in the Savings Banks Trust Company, 
New York, New York, may be considered assets for the purposes of 
meeting the liquidity requirements of section 5A(b) of the Federal 
Home Loan Bank Act (12 U.S.C. 1425a(b)).". 
84 Stat. 1816. 
EXTENSION OF DEADLINE FOR ENERGY CONSERVATION STANDARDS FOR 
NEW BUILDINGS 
SEC. 326. (a) Paragraphs (1) and (2) of section 304(a) of the Energy 
Conservation Standards for New buildings Act of 1976 are amended 
by striking out "within 6 months after the date of publication of the 
proposed standards" in the last sentence of each such paragraph and 
inserting in lieu thereof "by April 1,1983,". 
(b) Section 304(aXl) of such Act is amended by inserting the 
following new sentences after the first sentence thereof: "Interim 
performance standards for new Commercial buildings shall be pro-
mulgated by August 1, 1981, and, for at least the 12-month period 
beginning on such date, the Secretary of Energy shall conduct a 
demonstration project utilizing such standards in at least two geo-
graphical areas in different climatic regions of the country. Prior to 
the effective date of fined performance standards promulgated pursu-
ant to this paragraph and not later than 180 dajrs after completing 
such demonstration project, such Secretary shall transmit to both 
Houses of the Congress a report containing an analysis of the findings 
and conclusions made as a result of carrying out such project, 
including at least an analysis of the effect such standards would have 
on the design, construction costs, and the estimated total energy 
savings (including the types of energy) to be realized from utilizing 
such energy standards in commercial buildings.". 
(c) Section 304(aX2) of such Act is amended by inserting the 
following new sentences after the first sentence thereof: "Interim 
performance standards for new residential buildings shadl be promul-
gated by August 1, 1981, and, for at least the 12-month period 
beginning on such date, the Secretary of Energy shall conduct a 
demonstration project utilizing such standards in at least two geo-
graphical areas in different climatic regions of the country. Prior to 
the effective date of final performance standards promulgated pursu-
ant to this paragraph and not later than 180 days after completing 
such demonstration project, such Secretary shall transmit to both 
Houses of the Congress a report containing an analysis of the findings 
and conclusions made as a result of carrjdng out such project, 
including at least (A) an analysis of the impact of such standards on 
builders (especially on small builders) and on the cost of constructing 
such buildings and the impact of such cost on the ability of low- and 
moderate-income persons to purchase or rent such buildings, and (B) 
an analysis of the estimated total energy savings (including the types 
of energy) to be realized from utilizing such standards in residential 
buildings.". 
42 u s e 6833. 
Commercial 
buildings, 
demonstration 
project. 
Report to 
Congress. 
Residential 
buildings, 
demonstration 
project. 
Report to 
Congress. 
94 STAT. 1650 
PUBLIC LAW 96-399—OCT. 8, 1980 
12 u s e 1735f-4 
42 u s e 6801 
note. 
12 u s e 1715n. 
42 use 6835. 
(d) Section 306 of such Act is amended by striking out "final 
performance standards" and all that follows and inserting in lieu 
thereof the following: "interim performance standards promulgated 
pursuant to section 304(a). Upon the effective date of the final 
performance standards promulgated pursuant to such section, the 
head of each such agency shall adopt such procedures as may be 
necessary to assure that construction of any Federal building meets 
or exceeds the applicable final performance standards.". 
(e) Section 526 of the National Housing Act is amended by striking 
out ", until such time as the energy conservation performance 
standards required under the Energy Conservation Standards for 
New Buildings Act of 1976 become effective" in the second sentence. 
RENTAL HOUSING PRESERVATION 
SEC. 327. Section 223(f) of the National Housing Act is amended— 
(1) by inserting "(1)" after "(f)"; 
(2) by inserting "(2)" at the beginning of the second sentence 
and redesignating that sentence as a new paragraph; 
(3) by inserting "the purchase or" after "In the case o f in 
paragraph (2) as so redesignated; 
(4) by inserting after "located in an older, declining urban area, 
the Secretary shall" in paragraph (2), as so redesignated, the 
following: "make available an amount not to exceed $30,000,000 
of available purchase authority pursuant to section 305 of this 
12 use 1720. 
Act to reduce interest rates on low- and moderate-income rental 
housing in projects having 100 units or less which otherwise 
could not support refinancing and moderate rehabilitation with-
out causing excessive rent burdens on current tenants due to 
rent increases. The Secretary shall"; 
(5) by striking out "(1)" before "the refinancing" in paragraph 
(2), as so redesignated and inserting in lieu thereof "(A)" and by 
striking out "and" after the semicolon; 
(6) in paragraph (2) as so redesignated, by striking out "(2)" 
before "during" and inserting in lieu thereof "(B)", by inserting 
"and maintain reasonable profit levels" before "approved by the 
Secretary"; 
(7) by inserting after subparagraph (B), as so redesignated, the 
following: 
"(3) For all insurance authorized by this subsection and provided 
pursuant to a commitment entered into after the date of enactment of 
Ante, p. 1614. 
the Housing and Community Development Act of 1980, the Secretary 
may not accept an offer to prepay or request refinancing of a 
mortgage secured by rental housing unless the Secretary takes 
appropriate action that will obligate the borrower (and successors in 
interest thereof) to utilize the property as a rental property for a 
period of five years from the date on which the insurance was 
provided (twenty years in the case of any such mortgage purchased 
under section 305) unless the Secretary finds that— 
"(A) the conversion of the property to a cooperative, or con-
dominium form of ownership is sponsored by a bona fide tenants' 
organization representing a majority of the households in the 
project; 
"(B) continuance of the property as rental housing is clearly 
unnecessary to assure adequate rental housing opportunities for 
low- and moderate-income people in the community; or 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1651 
"(C) continuance of the property as rental housing would have 
an undesirable and deleterious effect on the surrounding neigh-
borhood."; and 
(8) by inserting "(5)" before the sentence beginning "In the case 
of refinancing of an existing hospital" and redesignating that 
sentence as paragraph (5). 
TITLE INSURANCE RELIEF 
Indian land 
claims. 
12 u s e 1709. 
SEC. 328. Section 203 of the National Housing Act is amended by 
adding at the end thereof the following new subsection: 
"(p)(l) Notwithstanding any other provision of this section or any 
other section of this title, the Secretary is authorized to insure, and to 
commit to insure, under subsection (b) of this section as modified by 
this subsection a mortgage which meets both the requirements of this 
subsection and such criteria as the Secretary by regulation shall 
prescribe to further the purpose of this subsection, in any community 
where the Secretary determines that— 
"(A) temporary adverse economic conditions exist throughout 
the community as a direct and primary result of outstanding 
claims to ownership of land in the community by an American 
Indian tribe, band, or nation; 
"(B) such ownership claims are reasonably likely to be settled, 
by court action or otherwise; and 
"(C) fifty or more individual homeowners were joined as 
parties defendant or were members of a defendant class prior to 
April 1,1980, in litigation involving claims to ownership of land 
in the community by an American Indian tribe, band, group, or 
nation pursuant to a dispute involving the Articles of Confeder-
ation, Trade and Intercourse Act of 1790, or any similar State or 
Federal law. 
"(2) A mortgage shall be eligible for insurance under subsection (b) 
of this section as modified by this subsection without regard to 
limitations in this title relating to marketability of title, or any other 
statutory restriction which the Secretary determines is contrary to 
the purpose of this subsection, but only if the mortgagor is an owner-
occupant of a home in a community specified in paragraph (1). The 
Secretary, in connection with any mortgage insured under subsection 
(b) as modified by this subsection, shall have all statutory powers, 
authority, and responsibilities which the Secretary has with respect 
to other mortgages insured under subsection (b), except that the 
Secretary may modify such powers, authority, or responsibilities 
where the Secretary deems such action to be necessary because of the 
special nature of the mortgage involved. Notwithstanding section 202 
of this title, the insurance of a mortgage under subsection (b) of this 12 use 1708. 
section as modified by this subsection shall be the obligation of the 
Special Risk Insurance Fund created pursuant to section 238 of this 
title.". 
12 u s e 1715Z-3. 
u s e prec. title I, 
1 Stat. 137. 
PARTICIPATION BY LOCAL PERSONS AND FIRMS IN ASSISTED PROJECTS 
SEC. 329. Section 3 of the Housing and Urban Development Act of 
1968 is amended— 
(1) by striking out "residing in the area of such project" in 
paragraph (1) and inserting in lieu thereof "residing within the 
unit of local government or the metropolitan area (or nonmetro-
politan county), as determined by the Secretary, in which the 
project is located"; and 
12 u s e 1701u. 
94 STAT. 1652 
PUBLIC LAW 96-399—OCT. 8, 1980 
(2) by striking out "residing in the area of such project" in 
paragraph (2) and inserting in lieu thereof "residing in the same 
metropolitan area (or nonmetropolitan county) as the project". 
Report to 
Congress. 
12 u s e 1723a 
note. 
MORTGAGE-BACKED SECURITIES PROGRAM 
SEC. 330. If the Federal National Mortgage Association submits to 
the Secretary of Housing and Urban Development or the Secretary of 
the Treasury, after the date of enactment of this section, a proposal 
with respect to undertaking a mortgage-backed securities program, 
the Secretary of Housing and Urban Development or the Secretary of 
the Treasury, as the case may be, shall, within 90 days after 
submission of such proposal, approve the proposal or transmit to the 
Congress a report explaining why the proposal has not been 
approved. 
Thermal 
requirements. 
Analysis, report 
to Congress. 
Exemption. 
EXTENSION OF HUD MINIMUM PROPERTY STANDARDS; LOCAL 
ACCEPTABLE STANDARDS FOR MASONRY CONSTRUCTION 
SEC. 331. (a) Until the Secretary of Housing and Urban Develop-
ment submits the report required by subsection (b) to the Congress, 
any final rule published for effect by the Secretary pertaining to 
increases in thermal requirements for the Department of Housing 
and Urban Development's minimum property standards shall pro-
vide for the continuation of any local acceptable standards exemp-
tions, approved by the Secretary prior to May 31, 1979, which are 
applicable to masonry construction. 
(b) The Secretary shall conduct an analysis and, on August 1,1981, 
report to Congress on the cost of constructing, heating, and cooling 
masonry, frame, log, and other buildings that comply with the 
increased thermal requirements and on the competitive economic 
impact of applying such increased thermal standards or permitting 
any exemptions from them. 
(c) If such analysis shows there is an economic justification for any 
exemption from the thermal standards, an appropriate exemption for 
a specific construction type in a specific geographical location may be 
provided by the Secretary. 
NEGOTIATED INTEREST RATES UNDER SECTION 203 
12 use 1709-1. 
SEC. 332. Section 3(a) of Public Law 90-301 is amended— 
(1) by inserting "(1)" after "SEC. 3. (a)"; 
(2) by inserting ", except those provided for in paragraph (2)," 
in the first sentence after "for all purposes"; and 
(3) by adding the following new paragraph at the end thereof: 
Commitment 
"(2)(A) Notwithstanding any other provision of law, the Secretary 
agreement. 
jjj^y provide that the interest rate applicable to mortgages insured 
12 use 1709. 
under section 203(b) of the National Housing Act shall be an interest 
rate specified in a commitment agreement which is negotiated 
between the mortgagor and mortgagee i
f
— 
"(i) the mortgagee discloses to the borrower, prior to the 
commitment, information on the applicable maximum rate 
established under paragraph (1) and a good faith estimate of the 
prevailing number of discount points associated with such rate; 
"(ii) the agreement commits the mortgagee to such specified 
interest rate for at least 30 days after the date on which it is 
entered into; and 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1653 
"(iii) the agreement contains a commitment with respect to 
any discount points to be charged which shall be binding during 
the same period as the conunitment period with respect to the 
specified interest rate. 
"(B) The number of mortgages which are insured in accordance 
with this paragraph in any fiscal year may not exceed— 
"(i) the number of mortgages which exceeds 10 per centum of 
all mor^ages insured under such section 203 during the preced-
ing 
fiscal 
year, or 
"(ii) 50,000 mortgages, 
whichever is greater. 
"(C) The provisions of this paragraph shall not apply with respect 
to mortgages which are subject to section 245 of the National Housing 
Act. 
"(D) The Secretary shall monitor experience under this paragraph 
and report to (Congress by March 1, 1982, comparing the discount 
points and effective yields associated with mortgages insured under 
this paragraph with the discount points and effective yields associ-
ated with (i) mortgages in the conventional mortgage market, and (ii) 
other mortgages insured under section 203(b) of the National Housing 
Act.". 
Mortgages, 
limitation. 
12 u s e 1709. 
12USC1715Z-10. 
Report to 
Congress. 
DELETION OF REFERENCES TO REMAINING ECONOMIC UFE 
SEC. 333. (a) Section 203(bX3) of the National Housing Act is 1
2 use 1709. 
amended by striking out the following: "or three-quarters of the 
Secretary's estimate of the remaining economic life of the building 
improvements, whichever is the lesser". 
(b) Section 220(h)(2Xiv) of such Act is amended by striking out the 1
2 use I7i5k. 
following: "or three-quarters of the remaining economic life of the 
structure, whichever is the lesser". 
(c) Section 221(dX6) of such Act is amended by striking out ": 1
2 use 1
7
1
5
Z
. 
Provided, That no mortgage insured under subsection (dX2) shall 
have a maturity exceeding three-quarters of the Secretary's estimate 
of the remaining economic life of the building improvements". 
(d) Section 221(iX2XAXiv) of such Act is amended by striking out 
"the lesser of and by striking out "or three-quarters of the Secre-
tary's estimate of the remaining economic life of the building 
improvements". 
(e) Section 234(c) of such Act is amended by striking out the 1
2 use I7i5y. 
following: "or three-fourths of the Secretary's estimate of the remain-
ing economic life of the project, whichever is the lesser". 
(f) Section 240(cX5) of such Act is amended by striking out the 1
2 use i7i5z-5. 
following "or three-quarters of the remaining economic life of the 
home, whichever is the lesser". 
CONGRESSIONAL REVIEW 
SEC. 334. (a) Section 7(oX3) of the Department of Housing and 
Urban Development Act is amended by striking out "20" each place it 42 use 3535 
appears and inserting in lieu thereof "30". 
(b) The amendment made by subsection (a) shall apply only to rules 
and regulations which are published as final on or after the date of 
enactment of this Act. 
42 use 3535 
note. 
94 STAT. 1654 
PUBLIC LAW 96-399—OCT. 8, 1980 
AUTHORITY TO PROTECT FEDERAL GOVERNMENT S INTERESTS IN 
CERTAIN SITUATIONS 
SEC. 335. Section 306(g) of the Federal National Mortgage Associ-
12 use 1721. 
ation Charter Act is amended— 
(1) by striking out "Any Federal, State, or other law to the 
contrary notwithstanding, the" in the fourth sentence and 
inserting in lieu thereof "The"; and 
(2) by inserting after the fourth sentence the following new 
sentence: "No State or local law, and no Federal law (except 
Federal law enacted expressly in limitation of this subsection 
after the effective date of this sentence), shall preclude or limit 
the exercise by the Association of (A) its power to contract with 
the issuer on the terms stated in the preceding sentence, (B) its 
rights to enforce any such contract with the issuer, or (C) its 
ownership rights, as provided in the preceding sentence, in the 
mortgages constituting the trust or pool against which the 
guaranteed securities are issued.". 
MORTGAGE UMITS 
12 use 1709. 
SEC. 336. (a) Section 203(b)(2) of the National Housing Act is 
amended by inserting after "four-family residence" the following: "; 
except that the Secretary may increase the preceding maximum 
dollar amounts on an area-by-area basis to the extent the Secretary 
deems necessary, after taking into consideration the extent to which 
moderate and middle income persons have limited housing opportu-
nities in the area due to high prevailing housing sales prices, but in 
no case may such limits, as so increased, exceed the lesser of (A) 133 V
a 
per centum of the dollar amount specified, or (B) in the case of a one-
family residence, 95 per centum of the median one-family house price 
in the area, as determined by the Secretary; in the case of a two-
family residence, 107 per centum of such median price; in the case of 
a three-family residence, 130 per centum of such median price; or in 
the case of a four-family residence, 150 per centum of such median 
price". 
12 use 1715k. 
(b) Section 220(d)(3)(A)(i) of such Act is amended— 
(1) by striking out "$67,500" and all that follows through "four-
family residence" and inserting in lieu thereof the following: 
"the applicable maximum principal obligation which may be 
insured in the area under section 203(b)"; 
(2) by striking out "$107,000" the second place it appears and 
inserting in lieu thereof "the applicable maximum principal 
obligation secured by a four-family residence which may be 
insured in the area under section 203(b)"; and 
(3) by striking out "$8,250" and inserting in lieu thereof 
"$9,165". 
12 use 1715m. 
(c) Section 222(b)(2) of such Act is amended to read as follows: 
"(2) involve a dwelling designed principally for a one-familv 
residence or a one-family unit in a condominium project;'. 
12 use I7l5y. 
(d) Section 234(c) of such Act is amended by inserting after 
"$67,500," the following: "except that the Secretary may increase 
such maximum dollar amount on an area-by-area basis to the extent 
the Secretary deems necessary, after taking into consideration the 
extent to which moderate and middle income persons have limited 
housing opportunities in the area due to high prevailing housing 
sales prices, but in no case may such limit, as so increased, exceed the 
lesser of 111 per centum of such amount or 95 per centum of the 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1655 
median one-family house price in the area, as determined by the 
Secretary;". 
(e) The Secretary of Housing and Urban Development shall conduct 
a study of the appropriate role of mortgage and loan insurance 
programs administered by the Federal Housing Administration— 
(1) in assisting various income groups to obtain homeowner-
ship; 
(2) in assuring an adequate level of new home construction; 
(3) in assuring an adequate flow of capital into mortgage 
markets; and 
(4) in moderating housing costs. 
In conducting such study, the Secretary shall examine the desirabil-
ity and feasibility of establishing mortgage limits for the mortgage 
insurance programs on an area-by-area basis and the desirability and 
feasibility of doing so by relating such limits to housing sales price 
data or indices. The Secretary shall prepare a report (including such 
recommendations as the Secretary deems appropriate) based upon 
such study and transmit it to the Congress by March 1, 1981. 
Study. 
Report to 
Congress 
AMENDMENTS TO THE PROGRAM ESTABLISHED BY THE EMERGENCY 
HOME PURCHASE ASSISTANCE ACT OF 1974 
SEC. 337. (a) Section 3(b) of the Emergency Home Purchase Assist-
ance Act of 1974 is amended by striking out "October 16, 1980" and Ante, p. 1364. 
inserting in lieu thereof "October 1,1981". 
(b) Section 313 of the National Housing Act is amended— 
12 use I723e. 
(1) by inserting "and if the Secretary determines that the 
implementation of this section will not significantly worsen 
inflationary conditions," after "1968," in the first sentence of 
subsection (a)(1); 
(2) by striking out "mortgages" in the first sentence of subsec-
tion (a)(1) and inserting in lieu thereof "mortgages and securi-
ties"; 
(3) by striking out "mortgages (1)" in the first sentence of 
subsection O
b
) and inserting in lieu thereof "(1) mortgages"; 
(4) by striking out "or (2)" in the first sentence of subsection O
t
)
) 
and inserting in lieu thereof ", (2) securities guaranteed by the 
Association and backed by loans and advances of credit insured 
under title I of the National Housing Act, or guaranteed under 12 use 1702. 
chapter 37 of title 38, United States Code, and made for the 38 use 1801 et 
purchase of a manufactured home and lot, or manufactured *^9-
home, or (3) mortgages"; 
(5) by inserting "or guaranteed under title V of the Housing 
Act of 1949" before "or by qualified" in the first sentence of 42 use 1471. 
subsection (b); 
(6) by striking out all that follows "such mortgage involves an 
original principal obligation not to exceed" in clause (B) of the 
second sentence of subsection O
b
) and inserting in lieu thereof the 
following: ", for that part of the property attributable to dwelling 
use in the case of a more than four-family residence, the per unit 
limitations under the section of the National Housing Act under 12 use 1701. 
which the project mortgage is insured or, in the case of a 
manufactured home loan or advance of credit, the limitation 
contained in section 2(b) of this Act;"; 
12 use 1703. 
(7) by striking out in clause (C) of the second sentence of 
subsection O
b
) "such mortgage involves an interest rate not in 
excess of that which the Secretary may prescribe, taking into 
account the cost of funds and administrative costs under this 
94 STAT. 1656 
PUBLIC LAW 96-399—OCT. 8, 1980 
section, but in no event shall such rate exceed the lesser of (i) IVz 
per centum, or (ii) the rate set by the Secretary applicable to 
mortgages insured under section 203(b) of the National Housing 
12 use 1709. 
Act" and inserting in lieu thereof the following: "such mortgage 
involves an interest rate which the Secretary may prescribe 
which shall be as high as feasible consistent with meeting the 
objectives of this section at the lowest feasible cost, but if such 
mortgage is executed to finance the acquisition of a one-to-four 
family residence, it may not bear interest at a rate lower than 3 
percentage points below the average contract commitment rate 
for single family, thirty-year conventional mortgages with loan-
to-value ratios of 90 per centum in the monthly survey of all 
major lenders conducted by the Federal Home Loan Bank Board 
which is most recently available at the time that funds are 
released, and if such mortgage is executed to finance the acquisi-
tion of a more than four-family residence, it may not bear 
interest at a rate lower than AV2 percentage points below such 
average contract commitment rate '; 
(8) by striking out all that follows "such mortgage involves a 
principal residence the sales price of which does not exceed" in 
clause (D) of the second sentence of subsection Qj) and inserting in 
lieu thereof the following: "92 per centum of the applicable 
maximum principal obligation which may be insured in the area 
under section 20303)."; 
(9) by adding the following new sentence at the end of subsec-
tion 0?): 
"A security may be purchased under this section only if all of the 
loans or advances of credit backing such security (i) finance the 
purchase of manufactured homes and lots, or manufactured homes, 
which will be the principal residences of the borrowers, and (ii) 
involve an interest rate which the Secretary may prescribe which 
shall be as high as feasible consistent with meeting the objectives of 
this section at the lowest feasible cost, but in no event shall such rate 
be lower than 3 percentage points below the rate set by the Secretary 
and applicable to loans and advances of credit insured under title I of 
12 use 1702. 
the National Housing Act."; 
(10) by inserting "or securities" after "mortgages" the first 
time it appears in subsection (d)(2); 
(11) by striking out "enactment of this section" in subsection (e) 
and inserting in lieu thereof "the issuance of the commitment to 
purchase the mortgage"; 
(12) by inserting 'Nor securities" after "mortgages" in subsec-
tion (fXD; 
(13) in subsection (h)— 
(A) by inserting "and" at the end of clause (3); 
(B) by striking out paragraph (4); and 
(C) by redesignating paragraph (5) as paragraph (4); and 
(14) by adding at the end thereof the following new subsections: 
"(i) The Association may not purchase under this section any 
mortgage or loan which was executed or made (1) to finance the 
conversion of an existing rental housing project into a condominium 
or cooperative project, or (2) to finance the purchase of an individual 
unit in a condominium project or the purchase of a share in a 
cooperative project, in connection with such a conversion. 
Q) In carrying out the provisions of this section, the Association 
shall, to the extent practicable, purchase mortgages secured by 
dwelling units which contribute to the conservation of land and 
energy resources.". 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1657 
INCREASE IN GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 
MORTGAGE PURCHASE AUTHORITY 
SEC. 338. Section 305(c) of the Federal National Mortgage Associ-
ation Charter Act is amended by inserting the following before the 
period at the end thereof: ", and by $900,000,000 on October 1,1980". 
FEDERAL NATIONAL MORTGAGE ASSOCIATION AUTHORITY 
SEC. 339. (a)(1) Section 30206X3) of the Federal National Mortgage 
Association Charter Act is amended to read as follows: 
"(3) The corporation is authorized, with the approval of the Secre-
tary of Housing and Urban Development, to purchase, service, sell, 
lend on the security of, and otherwise deal in loans or advances of 
credit for the purchase and installation of home improvements, 
including energy conserving improvements or solar energy systems 
described in the last paragraph of section 2(a) of the National 
Housing Act and residential energy conservation measures as 
described in section 210(11) of the National Energy Conservation 
Policy Act and financed by a public utility in accordance with the 
requirements of title II of such Act. To be eligible for purchase, any 
such loan or advance of credit (other than a loan or advance made 
with respect to energy conserving improvements or solar energy 
systems or residential energy conservation measures) not insured 
under title I of the National Housing Act shall be secured by a lien 
against the property to be improved.". 
(2) When the Federal National Mortgage Association submits its 
proposal to the Secretary of Housing and Urban Development to 
implement the authority granted by the amendment made by para-
graph (1), the Secretary of Housing and Urban Development shall, 
within 75 days, approve such proposal or transmit to the Congress a 
report explaining why such proposal has not been approved. 
(b)(1) Section 3020t)) of such Act is amended by adding at the end 
thereof the following: 
"(4) The corporation is authorized, with the approval of the Secre-
tary of Housing and Urban Development, to purchase, service, sell, 
lend on the security of, and otherwise deal in loans or advances of 
credit secured by mortgages or other liens agsdnst manufactured 
homes.". 
(2) When the Federal National Mortgage Association submits its 
proposal to the Secretary of Housing and Urban Development to 
implement the authority granted by the amendment made by para-
graph (1), the Secretary of Housing and Urban Development shall, 
within 75 days, approve such proposal or transmit to the Congress a 
report explaining why such proposal has not been approved. 
12 u s e 1720. 
12 u s e 1717. 
12 u s e 1703. 
42 u s e 8211. 
42 u s e 8211. 
12 u s e 1702. 
Proposal 
submittal; report 
to eongress. 
12 u s e 1717 
note. 
12 u s e 1717. 
Proposal 
submittal; report 
to eongress. 
12 u s e 1717 
note. 
HOME MORTGAGE DISCLOSURE ACT AMENDMENTS 
SEC. 340. (a) Section 304 of the Home Mortgage Disclosure Act of 
1975 is amended— 
(1) by striking out "Office of Management and Budget" in 
subsection (a)(1) and inserting in lieu thereof "Department of 
Commerce"; 
(2) by amending subsection (aX2XA) to read as follows: 
"(A) The number and dollar amount for each item referred 
to in paragraph (1), by census tracts for mortgage loans 
secured by property located within any county with a popu-
lation of more than 30,000, within that standard metropoli-
12 u s e 2803. 
94 STAT. 1658 
PUBLIC LAW 96-399—OCT. 8, 1980 
tan statistical area, otherwise, by county, for mortgage loans 
secured by property located within any other county within 
that standard metropolitan statistical area."; and 
(3) by adding at the end thereof the following: 
Disclosure. 
"(d) Notwithstanding the provisions of subsection (a)(1), data 
required to be disclosed under this section for 1980 and thereafter 
shall be disclosed for each calendar year. Any depository institution 
which is required to make disclosures under this section but which 
has been making disclosures on some basis other than a calendar year 
basis shall make available a separate disclosure statement containing 
data for any period prior to calendar year 1980 which is not covered 
by the last full year report prior to the 1980 calendar year report. 
Format. 
"(e) The Board shall prescribe a standard format for the dislosures 
required under this section. 
Data disclosure 
"(D The Federal Financial Institutions Examination Council, in 
system. 
consultation with the Secretary, shall implement a system to facili-
tate access to data required to be disclosed under this section. Such 
system shall include arrangements for a central depository of data in 
each standard metropolitan statistical area. Disclosure statements 
shall be made available to the public for inspection and copying at 
such central depository of data for all depository institutions which 
are required to disclose information under this section (or which are 
12 use 2805. 
exempted pursuant to section 3060t))) and which have a home office or 
branch office within such standard metropolitan statistical area.". 
Repeal. 
(b) Section 310 of such Act is repealed. 
12 use 2809. 
(c) Such Act is amended by adding at the end thereof the following: 
"COMPILATION OF AGGREGATE DATA 
12 use 2809. 
"SEC. 310. (a) Beginning with data for calendar year 1980, the 
Federal Financial Institutions Examination Council shall compile 
each year, for each standard metropolitan statistical area, aggregate 
data by census tract for all depository institutions which are required 
12 use 2803. 
to disclose data under section 304 or which are exempt pursuant to 
12 use 2805. 
section 306(b). The Council shall also produce tables indicating, for 
each standard metropolitan statistical area, aggregate lending 
patterns for various categories of census tracts grouped accord-
ing to location, age of housing stock, income level, and racial 
characteristics. 
"(b) The Board shall provide staff and data processing resources to 
the Council to enable it to carry out the provisions of subsection (a). 
Public 
"(c) The data and tables required pursuant to subsection (a) shall be 
availability. 
made available to the public by no later than December 31 of the year 
following the calendar year on which the data is based. 
DISCLOSURE BY THE SECRETARY 
12 use 2810. 
"SEC. 311. Beginning with data for calendar year 1980, the Secre-
tary shall make publicly available data in the Secretary's possession 
for each mortgagee which is not otherwise subject to the require-
12 use 2805. 
ments of this title and which is not exempt pursuant to section 306(b), 
with respect to mortgage loans approved by the Secretary for insur-
12 use 1702, 
ance under title I or II of the National Housing Act. Such data to be 
1707. 
disclosed shall consist of data comparable to the data which would be 
disclosed if such mortgagee were subject to the requirements of 
12 use 2803. 
section 304. Dislosure statements containing data for each such 
mortgagee for a standard metropolitan statistical area shall, at a 
minimum, be publicly available at the central depository of data 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1659 
established pursuant to section 304(f) for such standard metropolitan 
statistical area. The Secretary shall also compile and make publicly 
available aggregate data for such mortgagees by census tract, and 
tables indicating aggregate lending patterns, in a manner compara-
ble to the information required to be made publicly available in 
accordance with section 310. 
TERMINATION OF AUTHORITY 
"SEC. 312. The authority granted by this title shall expire on 
October 1, 1985.". 
(d) The Federal Financial Institutions Examination Council, in 
consultation with the Administrator of the Small Business Adminis-
tration, shall conduct a study to assess the feasbility and usefulness of 
requiring depository institutions which make small business loans to 
compile and publicly disclose information regarding such loans. The 
Council shall submit a report on the results of such study, together 
with recommendations, to 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 not later than 
March 1,1981. 
(e) To promote efficiency and avoid duplication to the maximum 
extent feasible, the Federal Financial Institutions Examination 
Council shall transmit a report to the Congress not later than 
September 30,1982, on the feasibility and desirability of establishing 
a unified system for enforcing fair lending laws and regulations, 
implementing the Community Reinvestment Act of 1977, and satisfy-
ing the public disclosure purposes of the Home Mortgage Disclosure 
Act of 1975. Such report shall evaluate the status and effectiveness of 
data collection and analysis systems of such agencies involving fair 
lending and community reinvestment, and shall outline possible 
specific timetables for implementing such a unified system. 
12 u s e 2811. 
Study. 
12 u s e 3305 
note. 
Report to 
congressional 
committees. 
Report to 
eongress 
12 u s e 3305 
note. 
12 u s e 2901 
note. 
12 u s e 2801 
note. 
TEMPORARY MORTGAGE ASSISTANCE PAYMENTS 
SEC. 341, Section 230 of the National Housing Act is amended to 
read as follows: 
TEMPORARY MORTGAGE ASSISTANCE PAYMENTS AND ACQUISITION OF 
MORTGAGES TO AVOID FORECLOSURE 
"SEC. 230. (a)(1) Upon receiving notice of the default of any 
mortgage covering a one-, two-, three-, or four-family residence 
insured under this Act, the Secretary (for the purpose of avoiding 
foreclosure of the mortgage, and notwithstanding the fact that the 
Secretary has previously approved a request of the mortgagee for an 
extension of the time for curing the default and of the time for 
commencing foreclosure proceedings or for otherwise acquiring title 
to the mortgaged property, or has approved a modification of the 
mortgage for the purpose of changing the amortization provisions by 
recasting the unpaid balance) may make all or part of the monthly 
payments due under the mortgage directly to the mortgagee on 
behalf of the mortgagor, if such default was caused by circumstances 
which are beyond the mortgagor's control and render the mortgagor 
temporarily unable to correct a mortgage delinquency and to resume 
full mortgage payments. Payments may be made only in accordance 
with the provisions of this subsection and shall be subject to any 
additional requirements the Secretary may prescribe. 
"(2) No payments may be provided under this subsection unless the 
Secretary has determined that such payments are necessary to avoid 
Default. 
12 u s e 1715u. 
94 STAT. 1660 
PUBLIC LAW 96-399—OCT. 8, 1980 
Payment period, 
extension. 
Mortgeigor's 
financial 
circumstances, 
review. 
Lien. 
Interest. 
12 u s e 1709. 
foreclosure and that there is a reasonable prospect that the mortga-
gor will be able— 
"(A) to resume full mortgage payments within thirty-six 
months after the beginning of the period for which such pay-
ments are provided or upon termination of assistance under this 
subsection; 
"(B) to commence repayment of the payments made under this 
subsection at a time designated by the Secretary; and 
"(C) to pay the mortgage in full by its maturity date or by a 
later date established by the Secretary for completing the mort-
gage payments. 
"(3) Payments under this subsection may be in an amount deter-
mined by the Secretary up to the amount of the principal, interest, 
taxes, assessments, ground rents, hazard insurance, mortgagee's 
expenses in connection with payments or repayments under this 
subsection, and mortgage insurance premiums due under the mort-
gage, and the initial payment may include an amount necessary to 
make the payments on the mortgage current. Payments may not 
exceed amounts which the Secretary determines to be necessary to 
supplement the amounts, if any, which the mortgagor is capable of 
contributing toward the mortgage payments. 
"(4) Payments under this subsection may be provided for a period of 
not to exceed eighteen months, and any period of default. Such period 
may be extended, in the Secretary's discretion, for not to exceed 
eighteen months where the Secretary has determined that such 
extension is necessary to avoid foreclosure and that there is a 
reasonable prospect that the mortgagor will be able to make the 
payments and repayments specified in paragraph (2) of this subsec-
tion. The Secretary shall establish procedures for periodic review of 
the mortgagor's financial circumstances for the purpose of determin-
ing the necessity for continuation, termination, or adjustment in the 
amount of the payments. Payments shall be discontinued at any time 
when the Secretary determines that, because of changes in the 
mortgagor's financial circumstances, the payments are no longer 
necessary to avoid foreclosure or that there is no longer a reasonable 
prospect that the mortgagor will be able to make the payments and 
repayments specified in paragraph (2) of this subsection. 
"(5) All payments shall be secured by a lien on the property and by 
such other obligation as the Secretary may require. Payments shall 
be repayable upon terms and conditions prescribed by the Secretary, 
and such terms and conditions may include requirements for repay-
ment of any amount paid by the Secretary toward a mortgagee's 
expenses in connection with the payment or repayments made under 
this subsection. The Secretary may establish interest charges on 
payments made under this subsection; except that such charges shall 
not exceed a rate which is more than the maximum interest rate 
applicable with respect to level payment mortgages insured pursuant 
to section 203(b) of this Act at the time assistance under this section is 
approved by the Secretary. Such charges shall be payable notwith-
standing any provision of any State constitution or law or local law 
which limits the rate of interest on loans or advances of credit. 
"(6) Payments under this subsection may be made without regard 
to whether the Secretary has previously taken action to avoid 
mortgage acquisition or foreclosure, except that payments may be 
provided on behalf of a mortgagor previously assisted under this 
section only in cases in which full mortgage payments (and any 
repayments to the Secretary which may have been requested) have 
been made by such mortgagor for at least 12 months from the time 
such previous assistance under this section was terminated. 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1661 
"(b)(1) When the Secretary receives notice of a default described in 
subsection (a)(1) and makes a determination that assistance under 
subsection (a) would be inappropriate in the case of the mortgagor, 
the Secretary (for the purpose of avoiding foreclosure of the mort-
gage, and notwithstanding the facts described in the parenthetical 
material contained in subsection (aXD and the fact that payments 
have been made under subsection (a) with respect to the mortgage) 
shall, if determined necessary by the Secretary, acquire the mortgage 
and security therefor upon pa5mient of the insurance benefits in an 
amount equal to the unpaid principal balance of the mortgage plus 
any unpaid mortgage interest and reimbursement for such costs and 
attorney's fees as the Secretary finds were properly incurred in 
connection with the defaulted mortgage and its assignment to the 
Secretary, and for any proper advances theretofore made by the 
mortgagee under the provisions of the mortgage. After the acquisi-
tion of such mortgage by the Secretary, the mortgagee shall have no 
further rights, liabilities, or obligations with respect thereto. The 
provisions of section 204 relating to the issuance of debentures 
incident to the acquisition of foreclosed properties shall apply with 
respect to debentures issued under this subsection, and the provisions 
of section 204 relating to the rights, liabilities, and obligations of a 
mortgagee shall apply with respect to the Secretary when the 
Secretary has acquired an insured mortgage under this section, in 
accordance with and subject to regulations (modifying such provi-
sions to the extent necessary to render their application for such 
purpose appropriate and effective) which shall be prescribed by the 
Secretary. 
"(2) The Secretary may provide Eissistance, to a mortgagor whose 
mortgage has been acquired under paragraph (1) of this subsection, 
through forebearance of interest or principal, or both, or through 
other means, for a period of not more than eighteen months after the 
acquisition of the mortgage, if the mortgagor has not been assisted 
under subsection (a) within twelve months of the date of such 
acquisition and if the Secretary determines that there is a reasonable 
prospect that the mortgagor will be able to meet the conditions 
described in subsection (a)(2). Such period may be extended, in the 
Secretary's discretion, for not to exceed eighteen months where the 
Secretary has determined that such extension is necessary to avoid 
foreclosure and that there is a reasonable prospect that the mortga-
gor will be able to meet the conditions described in subsection (a)(2). 
Such assistance (which may include any expenses of the Secretary 
incurred in connection with providing such assistance) shall be 
repayable upon terms and conditions prescribed by the Secretary, 
except that in no event shall any interest rate chargpd on such 
repayments exceed the interest rate chargeable for repayments of 
assistance made under subsection (a). Such rate shall be payable 
notwithstanding any provision of any State constitution or law or 
local law which limits the rate of interest on loans or advances of 
credit. 
"(3) In carrying out paragraph (1), the Secretary shall, if deter-
mined necessary by the Secretary, acquire a mortgage, with respect 
to which assistance was being provided under subsection (a) immedi-
ately prior to such acquisition, for the sole purpose of extending the 
term of repayment under the mortgage so that the mortgagor will be 
able to make the full payments on the mortgage. 
"(c) All expenditures made under this section shall be made from 
the insurance fund chargeable for insurance benefits on the mort-
gage covering the property to which the payments made relate, and 
Mortgage 
acquisition by 
Secretary. 
Debenture 
issuance. 
12 u s e 1710. 
Interest or 
principal. 
Assistance 
repayment. 
Insurance fund. 
94 STAT. 1662 
PUBLIC LAW 96-399—OCT. 8, 1980 
any payments received under this section shall be credited to such 
fund; except that payments made pursuant to subsection (a) of this 
section may only be made to the extent approved in appropriation 
Acts. 
Homeownership 
"(d) The Secretary shall, to the extent practicable, provide home-
counseling 
ownership counseling to persons assisted under this section.". 
TITLE IV—PLANNING ASSISTANCE 
SEC. 401. Section 701 of the Housing Act of 1954 is amended to read 
as follows: 
"PLANNING ASSISTANCE 
40 use 461. 
"SEC. 701. (a) The Congress finds that— 
"(1) the general welfare requires the conservation and the 
orderly and efficient growth and development of the Nation's 
communities, particularly communities suffering from fiscal, 
economic, and social distress; 
"(2) effective and coordinated planning efforts at all levels of 
government are necessary in order for such conservation, 
growth, and development to be effectively and efficiently 
achieved; 
"(3) a major component of such planning effort should be 
detailed strategies that can guide governmental actions in order 
to assure that, to the maximum extent practicable, the goals and 
objectives of such plans will be achieved through the implemen-
tation of such planning efforts; 
"(4) such planning efforts and strategies should be consistent 
with National Policy Objectives; and 
"(5) Federal actions and programs, to the extent practicable, 
should be administered in conformance with State, areawide and 
local plans and strategies. 
"0?) The purposes of this section are— 
"(1) to provide assistance to encourage State and local govern-
ments and areawide planning organizations to develop strategies 
for implementing comprehensive plans (or components of such 
plans) and to the extent necessary comprehensive plans or 
components of such plans, giving particular emphasis to those 
strategies which are designed to implement those components of 
the plan which relate to the National Policy Objectives; and 
"(2) to encourage, to the maximum extent practicable, the 
coordination of Federal policy and program decisions with such 
plans and strategies. 
Definitions. 
"(c) As used in this section— 
"(1) the term 'Secretary' means the Secretary of Housing and 
Urban Development; 
"(2) the term 'State' means any State of the United States, the 
District of Columbia, and the Commonwealth of Puerto Rico; 
"(3) the term 'unit of general local government' means any 
city, county, town, township, parish, village, or other general 
purpose politicEil subdivision of a State; 
"(4) the term 'Indian tribe' means any Indian tribe, band, 
group, and nation, including Alaska Indians, Aleuts, and Eski-
mos, and any Alaskan Native Village, of the United States, 
which is considered an eligible recipient under the Indian Self-
25 use 450 note. 
Determination and Education Assistance Act (Public Law 
31 use 1221 
93-638) or under the State and Local Fiscal Assistance Act of 
note. 
1972 (Public Law 92-512); 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1663 
"(5) the term 'metropolitan area' means a standard metropoli-
tan statistical area, established by the Department of Commerce, 
except that, to the extent the Secretary deems appropriate to 
carry out the purposes of this section, the Secretary may modify 
or extend such an area, but such modification or extension shall 
not affect the boundaries of any standard metropolitan statisti-
cal area for any other purpose; 
"(6) the term 'areawide planning organization' means any 
multijurisdictional unit which— 
"(A) is established under State law, interstate compact, or 
interlocal agreement for the purpose of formulating policies 
and plans for the orderly development of a substate or 
interstate region; 
"(B) is formally charged with carrying out the provisions 
of section 401 of the Intergovernmental Cooperation Act of 
1968; 
42 use 4231. 
"(C) in the absence of State law to the contrary, has at 
least a majority of elected officials from local governments 
on its governing body; and 
"(D) meets such other standards as the Secretary may 
prescribe by regulation; 
"(7) the term 'National Policy Objectives' means— 
"(A) the conservation and improvement of existing com-
munities, particularly the improvement of those communi-
ties which are characterized by fiscal, economic or social 
distress; 
"(B) an increase in housing and employment opportunities 
and choices, particularly for lower income, minority persons, 
women, and persons with special needs such as the elderly 
and handicapped, and a reduction in the cost of housing; and 
"(C) the promotion of orderly and efficient growth and 
development of communities, regions and States, taking into 
consideration the necessity of conserving energy; 
"(8) the term 'comprehensive plan' means a plan which 
includes, at least, housing and land use elements which take into 
account factors prescribed by the Secretary, including those 
required to achieve the National Policy Objectives; 
"(9) the term 'strategy' means a detailed strategy statement 
designed to identify and describe the actions required to imple-
ment such plan, or components of such plan, in order to achieve, 
to the maximum extent practicable, the goals and objectives of 
such plan or, in the absence of such plan, the actions which will 
be required in the course of developing a comprehensive plan; 
and 
"(10) the term 'action program' means a program which 
includes (A) an identification of specific actions that are neces-
sary for implementing elements included in the strategy state-
ment; (B) an identification of the governmental entity responsi-
ble for undertaking each such action; (C) a timetable specifying 
when each such action may be reasonably expected to be carried 
out; and (D) to the maximum extent practicable, agreements, by 
the governmental entities identified as being responsible for 
undertaking such actions, that they will undertake such actions. 
"(d)(1) The Secretary may contract to make, and make, grants on Grants. 
an annual basis which are approved in accordance with the provi-
sions of this section to— 
"(A) States, for statewide activities; 
•<)-i;)4 O—81—pt. 2 
•2r):QU 
94 STAT. 1664 
PUBLIC LAW 96-399—OCT. 8, 1980 
"(B) States, for the provision of assistance to (i) nonmetropoli-
tan areawide planning organizations; (ii) units of general local 
government (except counties) having a population of less than 
50,000 according to the latest decennial or mid-decade census, as 
appropriate; (iii) counties, other than urban counties as defined 
under title I of the Housing and Community Development Act of 
42 use 5301. 
1974; and (iv) any group of adjacent units of general local 
government having a total population of less than 50,000 (accord-
ing to the latest decennial or mid-decade census, as appropriate) 
and having common or related planning needs; except that a 
grant may not be made under this paragraph where the State 
would be undertaking the activities described in subsection (e) on 
behalf of such organization, local government, county, or group 
of adjacent units of local government unless such organization, 
local government, county, or group of adjacent units of local 
government requests the State to undertake such activities; 
"(C) metropolitan areawide planning organizations; 
"(D) units of general purpose local government having a total 
population of fifty thousand or more according to the latest 
decennial or mid-decade census, as appropriate; 
"(E) urban counties as defined under title I of the Housing and 
Community Development Act of 1974; 
"(F) Indian tribes; and 
"(G) the Virgin Islands, Guam, the Northern Mariana Islands, 
American Samoa, and the Trust Territory of the Pacific Islands. 
"(2) In making grants under paragraph (1), the Secretary may 
make grants to States for the provision of assistance to any entity 
which is described in subparagraphs (C), (D), or (E) and which does not 
receive direct funding from the Secretary under paragraph (1), except 
that such grants may be made only if such entity notifies the 
Secretary of its desire to receive funding through the State. 
"(e) Grants may be made under this section only for those activities 
determined by the Secretary to be necessary to assist— 
"(1) in the development of strategies and action programs to 
implement a comprehensive plan or a part thereof or related 
plans or planning and, where such a plan does not exist dr is 
determined by the Secretary to be inadequate, in the develop-
ment of a comprehensive plan; 
"(2) in the development of evaluations or studies related to 
such plan, strategies, or action programs; or 
"(3) in the carrying out of the clearinghouse functions required 
pursuant to 0MB Circular A-95. 
Grant recipients, 
"(f)(1) The Secretary shall require that each recipient develop 
action programs' Strategies and action programs and, except as provided in paragraph 
and plans. 
(2), maintain and update a comprehensive plan and a planning 
process. 
"(2) In the case of a recipient that is not covered by or does not have 
a comprehensive plan and a planning process, the Secretary shall 
require, with respect to such a plan and process, only that such 
recipient begin the phased development of such a plan and process in 
a manner designed to assure that such a plan and process will be 
completed in a reasonable period of time taking into consideration 
the nature and scope of the recipient's reasonable planning needs and 
its financial resources. 
"(3) In carrying out this subsection, the Secretary shall require— 
"(A) citizen participation pursuant to regulations of the 
Secretary; 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1665 
"(B) the development and subsequent modifications of an 
implementation strategy and an action program and, to the 
extent necessary, a comprehensive plan and the review of such 
strategy, program, and plan, at least triennially for necessary or 
desirable amendments; and 
"(C) procedures, including criteria set forth in advance, for 
evaluating programs and activities undertaken pursuant to this 
section to determine whether such programs and activities are 
meeting the goals and objectives set forth in the strategies. 
"(g) The Secretary may not approve a grant for any year after the 
first year in which a grant pursuant to this section is made to a 
recipient unless the Secretary determines that— 
"(1) additional funds are required to assist in the development 
of the strategy, action program, and, to the extent necessary, the 
comprehensive plan or part thereof; and 
"(2) substantial progress has been made in the development 
and implementation of the strategy. 
To assist the Secretary in making such determinations, the applicant 
shall submit to the Secretary such information as the Secretary may 
require, including the performance report required pursuant to 
subsection (1), except that at least triennially the Secretary shall 
require the applicant to submit a detailed evaluation of the progress 
it has made during the preceding three-year period toward the 
development of such strategy and its implementation. 
"(h) The Secretary shall encourage the cooperation of all interested 
States, areawide planning organizations, municipalities, political 
subdivisions, public agencies, and other parties in the preparation of 
and in the carrying out of programs developed pursuant to this 
section. Such parties shall be afforded by the recipient organization 
or government a reasonable opportunity to comment on such strate-
gies, plans, and programs. 
"(i) States are authorized, subject to approval of the Secretary, to 
provide for the administration by areawide planning organizations of 
assistance provided pursuEint to subsection (d), except that responsi-
bility for adherence to the requirements of this section and other 
applicable laws shall remain with the State. 
'(j)(l) Contracts to make grants pursuant to this section shall 
contain such terms and conditions as the Secretary may prescribe. 
"(2) A grant made under subsection (d) shall not exceed two-thirds 
of the estimated cost of the work for which the grant is made. 
"(3) The Secretary is authorized by grant, contract, or otherwise to 
provide technical assistance directly to the entities referred to in 
subsection (d) to assist such entities to carry out the purposes of this 
section. 
"(k) In providing assistance to areawide planning organizations 
under subsection (d), the Secretary (or the State, in the case of 
assistance provided through the State) shall give preference to, and 
may provide additional funding for, organizations which provide for 
voting rights among their members weighted in proportion to the 
population of the areas represented by such members. 
'(1)(1) The Secretary shall, by regulation, establish criteria for the 
evaluation and approval of applications for grants under this section. 
"(2) For each year in which activities assisted under this section are 
being carried out, each entity receiving assistance directly from the 
Secretary shall submit to the Secretary a performance report con-
cerning activities carried out with such assistance. The Secretary 
shall, at least on an annual basis, make such reviews and audits as 
may be necessary or appropriate to determine whether a recipient of 
Grant approval. 
Areawide 
planning 
organizations. 
Terms and 
conditions. 
Grant 
application 
criteria. 
Performance 
reports, reviews, 
and audits. 
94 STAT. 1666 
PUBLIC LAW 96-399—OCT. 8, 1980 
GAO audits. 
Communities, 
grant eligibility. 
42 use 5318. 
funds under this section has carried out activities substantially as 
described in its application, whether such actions and activities 
conformed to the requirements of this section and other applicable 
laws, and whether the recipient has a continuing capacity to carry 
out such actions and activities in a timely manner. The Secretary 
shall adjust, reduce, or withdraw grant funds, or take other action as 
appropriate in accordance with such reviews and audits. 
"(3) Insofar as they relate to funds provided under this section, the 
financial transactions of recipients of such funds may be audited by 
the General Accounting Office under such rules and regulations as 
may be prescribed by the Comptroller General of the United States. 
The representatives of the General Accounting Office shall have 
access to all books, accounts, records, reports, files, and other papers, 
things, or property belonging to or in use by such recipients pertain-
ing to such financial transactions and necessary to facilitate the 
audit. 
"(m)(l) Grants made under this section shall only be used to carry 
out planning and related activities necessary to carry out the pur-
poses of this section. 
"(2) Grant assistance under this section shall not be used to defray 
the cost of the acquisition, construction, repair or rehabilitation of, or 
the preparation of engineering drawings or similar detailed specifica-
tions for, specific housing, capital facilities, public works projects, or 
for financing routine administrative responsibilities of any State or 
local government. 
"(3) Grant assistance under this section may be made available 
for— 
"(A) communities with populations of 25,000 or less; or 
"(B) communities with populations above 25,000 but less than 
50,000 which meet the criteria set forth in section 119(e) of the 
Housing and Community Development Act of 1974; 
for the preparation of applications for Federal financial assistance, 
except that there shall be a priority for such assistance to communi-
ties with populations of 25,000 or less. 
"(n)(l) The Secretary shall utilize, to the maximum extent practica-
ble, the plans and strategies approved by the Secretary under this 
section to guide policy and funding decisions with respect to the 
programs and activities of the Department of Housing and Urban 
Development which affect the geographical areas covered by such 
plans. 
"(2) The Secretary shall encourage other Federal departments and 
agencies to use the plans and strategies approved by the Secretary, to 
the maximum extent practicable, to guide policy and funding deci-
sions with respect to their programs and activities which affect the 
geographical areas covered by such plans and strategies. The Secre-
tary shall encourage other Federal departments and agencies, con-
sistent with their program authority, to adopt approved plans (or 
components thereof) as all or part of the planning requirements of 
such departments or agencies. 
"(3) A plan and strategy approved by the Secretary under this 
section shall remain in effect for a maximum of three years following 
the date of its approval. Any extension of a plan and strategy beyond 
such three-year term, or any major modification (as approved by the 
Secretary) of such a plan and strategy during such term, shall meet 
all of the requirements of this section and must be approved by the 
Secretary. Any proposed modification shall be submitted to the 
Secretary prior to its incorporation into the plan or strategy. 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1667 
Report to 
Congress. 
"(4) The Secretary shall report to the Congress no later than 
January 15, 1984, and no later than January 15 of every third year 
thereafter, concerning the progress made in encouraging other Fed-
eral departments and agencies to use approved plans and strategies 
as provided in paragraphs (1) and (2) of this subsection. 
(o) The consent of the Congress is hereby given to any two or more State compacts. 
States to enter into agreements or compacts, not in conflict with any 
law of the United States, for cooperative effort and mutual assistance 
in the comprehensive planning for the growth and development of 
interstate, metropolitian, or other urban areas, and to establish such 
agencies, joint or otherwise, as they may deem desirable for making 
effective such agreements and compacts. 
"(p) There is authorized to be appropriate for purposes of this 
section an amount not to exceed $40,000,000 for the fiscal year 1981, 
and not to exceed $40,000,000 for the fiscal year 1982. Any amounts 
appropriated shall remain available until expended.". 
SEC. 402. This title shall become effective on the effective date of 
regulations implementing section 401 of this title, but in no event 
later than May 1,1981. 
TITLE V—RURAL HOUSING 
Appropriation 
authorization. 
Effective date. 
40 u s e 461 note. 
AUTHORIZATIONS 
SEC. 501. (a) Section 513 of the Housing Act of 1949 is amended— 42 use 1483. 
(1) by striking out "not to exceed $4,484,000,000 with respect to 
fiscal year ending October 15, 1980" in subsection (a) and 
inserting in lieu thereof "not to exceed $3,797,600,000 with 
respect to the fiscal year ending September 30,1981"; 
(2) by striking out "not less than $3,070,000,000" in subsection 
(a)(1) and inserting in lieu thereof "not less than $3,120,000,000"; 
(3) by striking out "not more than $38,000,000" in subsection 
(a)(2) and inserting in lieu thereof "not more than $25,600,000"; 
(4) by striking out "and" at the end of subsection (a)(2), by 
striking out the period at the end of subsection (a)(3) and 
inserting in lieu thereof "; and", and by adding at the end of 
subsection (a) the following new paragraph: 
"(4) not more than $100,000,000 of such amount shall be 
available for loans guaranteed pursuant to this title on behalf of 
borrowers who do not receive assistance pursuant to subpara-
graph (B) or (C) of section 521(a)(1)."; 
42 use I490a. 
(5) by striking out subsection (b)(2) and inserting in lieu thereof 
the following: 
"(2) not to exceed $49,000,000 for loans and grants pursuant to 
section 504 for the fiscal year ending September 30, 1981, of 42 use 1474. 
which not more than $25,000,000 shall be available for grants;"; 
(6) by striking out "not to exceed $30,000,000 for financial 
assistance pursuant to section 516 for the fiscal year ending 42 use i486. 
October 15, 1980" in subsection (b)(3) and inserting in lieu 
thereof "not to exceed $25,000,000 for financial assistance pursu-
ant to section 516 for the fiscal year ending September 30,1981"; 
and 
(7) by striking out "not to exceed $1,500,000 for the purposes of 
section 525(a) of which not less than $750,000 shall be used for 42 use I490e. 
counseling purchasers and delinquent borrowers and not to 
exceed $1,000,000 for the purposes of section 525(b) for the fiscal 
year ending September 30, 1980" in subsection (b)(4) and insert-
ing in lieu thereof "not to exceed $2,000,000 for the purposes of 
94 STAT. 1668 
PUBLIC LAW 96-399—OCT. 8, 1980 
42 u s e 1490e. 
Ante, p. 1364. 
Ante, p. 1364. 
Ante, p. 1365. 
Appropriation 
authorization. 
Rental 
assistance 
contracts. 
42 u s e 1490a. 
Ante, p. 1364. 
section 525(a), of which not less than $1,000,000 shall be used for 
counseling purchasers and delinquent borrowers, for the fiscal 
year ending September 30,1981". 
O
t
>
) Section 515(b)(5) of such Act is amended by striking out 
"October 15, 1980" and inserting in lieu thereof "September 30, 
1981". 
(c) Section 517(a)(1) of such Act is amended by striking out "Octo-
ber 15, 1980" and inserting in lieu thereof "September 30, 1981". 
(d) Section 523 of such Act is amended— 
(1) by striking out "October 15, 1980" wherever it appears in 
subsection (f) and inserting in lieu thereof "September 30,1981"; 
and 
(2) by striking out subsection (g) and inserting in lieu thereof 
the following: 
"(g) There are authorized to be appropriated for the purposes of 
subsection (b)(1)(B) not to exceed $2,500,000 for fiscal year 1981. 
Amounts appropriated under this subsection, together with principal 
collections from loans made under appropriations in any previous 
fiscal years, shall be deposited in the Self-Help Housing Land Devel-
opment Fund, which shall be available as a revolving fund for making 
loans under subsection (b)(lXB). Instruments and property acquired 
by the Secretary in or as a result of making such loans shall be assets 
of the Self-Help Land Development Fund.". 
(e) Section 521(a)(2) of such Act is amended by adding the following 
new subparagraph at the end thereof: 
"(D) The Secretary, to the extent approved in appropriation Acts, 
may enter into rental assistance contracts aggregating not more than 
$493,000,000 in carrying out subparagraph (A) with respect to the 
fiscal year ending on September 30, 1981, except that such amount 
shall be reduced by any amount approved in appropriation Acts for 
use pursuant to section 521(a)(1)(C). . 
(f) Section 521(a)(1)(C) of such Act is amended— 
(1) by striking out the second sentence thereof and inserting in 
lieu thereof the following: "The amount of such additional 
assistance which may be approved in appropriation Acts may not 
exceed an aggregate amount of $100,000,000."; and 
(2) by striking out "after October 15, 1980" in the third 
sentence and inserting in lieu thereof "with respect to any fiscal 
year beginning on or after October 1, 1981". 
REFINANCING FOR CONSUMER COOPERATIVE 
42 use 1485. 
SEC. 502. Section 515 of the Housing Act of 1949 is amended by 
adding at the end thereof the following: 
"(f) Notwithstanding the provisions of subsections (a) and (b) of this 
section, the Secretary may make and insure loans to consumer 
cooperatives to enable such cooperatives to finance the transfers of 
memberships in the cooperatives upon such terms and conditions as 
low- and moderate-income persons can reasonably afford, except that 
such loans shall not be made upon terms more favorable than are 
42 use 1490a. 
authorized under section 521(a), and that the total loan to a coopera-
tive under this section shall not exceed the value of the property.". 
CONTINUED ELIGIBILITY OF CO-OP MEMBERS 
42 use 1485. 
SEC. 503. (a) Section 515(a) of the Housing Act of 1949 is amended— 
(1) by striking out "and" at the end of paragraph (2); 
(2) by striking out the period at the end of paragraph (3) and 
inserting in lieu thereof "; and"; and 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1669 
(3) by inserting after paragraph (3) the following: 
"(4) such a loan, when made to a consumer cooperative for 
cooperative housing purposes, may, notwithstanding any other 
provision of law, be made upon the condition that any person 
who is admitted as an eligible member and tenant of the 
cooperative may not subsequently be deprived of his membership 
or tenancy by reason of his no longer meeting the income 
eligibility requirements established by the Secretary.", 
(b) Section 515(b) of such Act is amended— 
(1) by striking out "and" at the end of paragraph (4); 
(2) by striking out the period at the end of paragraph (5) and 
inserting in lieu thereof "; and"; and 
(3) by adding at the end thereof the following new paragraph: 
"(6) such a loan, when made to a consumer cooperative for 
cooperative housing purposes, may, notwithstanding any other 
provision of law, be made upon the condition that any person 
who is admitted as an eligible member and tenant of the 
cooperative may not subsequently be deprived of his membership 
or tenancy by reason of his no longer meeting the income 
eligibility requirements established by the Secretary.". 
42 u s e 1485. 
Low- or 
moderate-
income housing. 
40 u s e 484b. 
40 u s e 471 note. 
SURPLUS FEDERAL LAND 
SEC. 504. The first sentence of section 414 of the Housing and Urban 
Development Act of 1969 is amended to read as follows: "Notwith-
standing the provisions of the Federal Property and Administrative 
Services Act of 1949, any Federal surplus real property within the 
meaning of such Act may, in the discretion of the Administrator of 
General Services, be transferred to the Secretary of Housing and 
Urban Development or the Secretary of Agriculture at the request of 
either such Secretary for sale or lease by either Secretary at its fair 
value for use in the provision of housing to be occupied predomi-
nantly by families or individuals of low- or moderate-income, assisted 
under a Federal housing assistance program administered by the 
Secretary of Housing and Urban Development or the Secretary of 
Agriculture or under a State or local program found by the appropri-
ate Secretary to have the same general purpose, and for related 
public commercial or industrial facilities approved by the appropri-
ate Secretary.". 
INTEREST CREDITS 
SEC. 505. Section 521(a)(1)(B) of the Housing Act of 1949 is amended 42 use I490a. 
by striking out "may" and inserting in lieu thereof "shall". 
DEFINITIONS 
SEC. 506. Section 5010)) of the Housing Act of 1949 is amended by 42 use 1471 
adding at the end thereof the following new paragraphs: 
"(6) For the purposes of this title, the term 'Indian tribe' means any 
Indian tribe, band, group, and nation, including Alaska Indians, 
Aleuts, and Eskimos, and any Alaskan Native Village, of the United 
States, which is considered an eligible recipient under the Indian 
Self-Determination and Education Assistance Act (Public Law 
93-638) or under the State and Local Fiscal Assistance Act of 1972 
(Public Law 92-512). 
"(7) For the purposes of this title, the term 'rural resident' shall 
include a family or a person who is a renter of a dwelling unit in a 
rural area. 
25 u s e 450 note. 
31 u s e 1221 
note. 
94 STAT. 1670 
PUBLIC LAW 96-399—OCT. 8, 1980 
42 u s e 1471. 
42 u s e 1484. 
42 u s e 1485. 
42 u s e 1486. 
42 u s e 1490c. 
42 u s e 1490d. 
42 u s e 1490e. 
42 u s e 1471. 
42 u s e 1480. 
42 u s e 1479. 
42 u s e 1490J. 
42 u s e 1484, 
1485, 1487. 
42 u s e 1490a. 
42 u s e 1437f. 
"(8) For the purposes of this title, the term 'adequate dwelling' 
means a decent, safe, and sanitary dwelling unit.". 
ASSISTANCE TO INDIANS AND ALASKAN NATIVES AND TO OTHER 
PERSONS RESIDING IN RESERVATIONS OR VILLAGES 
SEC. 507. (a) Section 501 of the Housing Act of 1949 is amended by 
inserting the following after "residents" in subsection (a)(2): ", 
including persons who reside in reservations or villages of Indian 
tribes,". 
(b) Section 514 of such Act is amended by inserting "or to any 
Indian tribe for such purpose," before "or to any State" in subsection 
(a). 
(c) Section 515 of such Act is amended— 
(1) by inserting "and Indian tribes" after "consumer coopera-
tives" in subsection (a); and 
(2) by inserting "Indian tribe," after "trust," in subsection Ob). 
(d) Section 516 of such Act is amended by inserting "or any Indian 
tribe," after "or political subdivision thereof in subsection (a). 
(e) Section 523 of such Act is amended— 
(1) by inserting "Indian tribes," after "organizations," in 
subsection Ot>)(l)(A); 
(2) by inserting "and to Indian tribes" after "private nonprofit 
organizations" in subsection Ob)(l)(B); and 
(3) by inserting ", including Indian tribes," after "other associ-
ations in subsection Ot))(2). 
(f) Section 524(a) of such Act is amended by inserting "and to Indian 
tribes" after "nonprofit organizations" the first time it appears in the 
first sentence. 
(g) Section 525 of such Act is amended by inserting "Indian tribes," 
after "organizations," in the first sentences of subsections (a) and (b). 
(h) The second sentence of section 501(c) of such Act is amended by 
inserting "or Indian tribe" after "local public agency". 
APPUCABILITY OF ENERGY CONSERVATON STANDARDS TO HOMES 
ACQUIRED AND SOLD BY THE FARMERS' HOME ADMINISTRATION 
SEC 508. Section 510(e) of the Housing Act of 1949 is amended by 
inserting after "standards," in clause (1) the following: "including 
cost-effective energy conservation standards prescribed under section 
509(a),". 
CONDITION ON RENT INCREASES IN 514, 515, AND 517 PROJECTS 
SEC. 509. Title V of the Housing Act of 1949 is amended by adding 
the following new section at the end thereof: 
"CONDITION O N R E N T INCREASES IN 514, 
515, 
AND 
517 PROJECTS 
"SEC. 530. The Secretary may not approve any increase in rental 
payments, with respect to units in which the tenants are paying 
rentals in excess of 25 per centum of their incomes, in any project 
which is assisted under section 514, 515, or 517 and under section 
521(a)(lXB) unless the project owner is receiving, or has applied for 
(within the most recent period of 180 days prior to the effective date of 
such increase), rental assistance payments with respect to such 
project under section 521(a)(2)(A) of this title or section 8 of the 
United States Housing Act of 1937.". 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1671 
SUBSEQUENT LOANS IN INELIGIBLE AREAS 
SEC. 510. Section 510 of the Housing Act of 1949 is amended by 42 use 1480. 
inserting the following after "available" in subsection (h): "for 
subsequent loans to permit necessary dwelling repairs and rehabilita-
tion and". 
GUARANTEED LOANS 
SEC. 511. Section 517(n) of the Housing Act of 1949 is amended by 42 use 1487. 
inserting "moderate or" after "borrowers with". 
DISPLACEMENT 
SEC. 512. Section 501 of the Housing Act of 1949 is amended by 42 use 1471. 
adding at the end thereof the following: 
"(g) The programs authorized by this title shall be carried out, 
consistent with program goals and objectives, so that the involuntary 
displacement of families and businesses is avoided.". 
STUDY 
SEC. 513. (a) The Secretary of Agriculture shall study the legislative 
and administrative changes which would be required— 
(1) to conform the procedures of the Farmers Home Adminis-
tration for reporting budget and accounting information with the 
reporting principles established by the Presidential Commission 
on Budget Concepts; 
(2) to establish procedures to reflect fully in the Federal Budget 
the budget authority and budget outlays of the programs admin-
istered by the Farmers Home Administration; 
(3) to remove budget and accounting practices which are 
inconsistent with the practices for recording debt transactions as 
provided in the current policy of the Office of Management and 
Budget; and 
(4) to simplify the authorities provided in title V of the Housing 
Act of 1949. 
O
b
) In carrying out this study, the Secretary shall consult with the 
appropriate committees of the Congress, the Comptroller General of 
the United States, and the Office of Management and Budget. 
(c) The Secretary shall report to the Congress the results of such 
study with recommendations for legislative and administrative 
changes for each of the matters described in paragraphs (1) through 
(4) of subsection (a), no later than the date on which the President's 
Budget for Fiscal Year 1982 is submitted to the Congress. 
PREPAYMENT AND REFINANCING OF LOANS UNDER SECTIONS 514 AND 
515 
SEC. 514. (a) Section 502(c) of the Housing Act of 1949 is amended— 42 use 1472. 
(1) by striking out "Except as provided in paragraph (2), the" in 
paragraph (1) and inserting in lieu thereof "The"; 
(2) by striking out "entered into before or after" each time it 
appears in paragraph (1) and inserting in lieu thereof "entered 
into after"; and 
(3) by striking out paragraph (2) and inserting in lieu thereof 
the following: 
"(2) If any loan which was made or insured under section 514 or 515 Relocation 
pursuant to a contract entered into before December 21, 1979, is priority. 
42 use 1484, 
1485. 
42 use 1471. 
Report to 
eongress. 
94 STAT. 1672 
PUBLIC LAW 96-399—OCT. 8, 1980 
Study, report to 
Congress. 
42 u s e 1472 
note. 
Condominium 
and Cooperative 
Abuse Relief Act 
of 1980. 
15 u s e 3601 
note. 
prepaid or refinanced on or after the date of enactment of the 
Housing and Community Development Act of 1980, and tenants of 
the housing and related facilities financed with such loan are dis-
placed due to a change in the use of the housing, or to an increase in 
rental or other charges, as a result of such prepayment or refinanc-
ing, the Secretary shall provide such tenants a priority for relocation 
in alternative housing assisted pursuant to this title.". 
(b) The Secretary of Agriculture shall conduct a study of, and 
report to the Congress not later than 6 months after the date of 
enactment of this Act on, any adverse effects the amendments made 
by subsection (a) may have on housing, particularly for the elderly 
and persons of low income. 
TITLE VI—CONDOMINIUM AND COOPERATIVE 
CONVERSION PROTECTION AND ABUSE RELIEF 
SHORT TITLE 
SEC. 601. This title may be cited as the 
Cooperative Abuse Relief Act of 1980". 
'Condominium and 
FINDINGS AND PURPOSE 
15 use 3601. 
SEC. 602. (a) The Congress finds and declares that— 
(1) there is a shortage of adequate and affordable housing 
throughout the Nation, especially for low- and moderate-income 
and elderly and handicapped persons; 
(2) the number of conversions of rental housing to condomin-
iums and cooperatives is accelerating, which in some communi-
ties may restrict the shelter options of low- and moderate-income 
and elderly and handicapped persons; 
(3) certain long-term leasing arrangements for recreation and 
other condominium- or cooperative-related facilities which have 
been used in the formation of cooperative and condominium 
projects may be unconscionable; in certain situations State 
governments are unable to provide appropriate relief; as a result 
of these leases, economic and social hardships may have been 
imposed upon cooperative and condominium owners, which may 
threaten the continued use and acceptability of these forms of 
ownership and interfere with the interstate sale of cooperatives 
and condominiums; appropriate relief from these abuses requires 
Federal action; and 
(4) there is a Federal involvement with the cooperative and 
condominium housing markets through the operation of Federal 
tax, housing, and community development laws, through the 
operation of federally chartered and insured financial institu-
tions, and through other Federal activities; that the creation of 
many condominiums and cooperatives is undertaken by entities 
operating on an interstate basis. 
0?) The purposes of this title are to seek to minimize the adverse 
impacts of condominium and cooperative conversions particularly on 
the housing opportunities of low- and moderate-income and elderly 
and handicapped persons, to assure fair and equitable principles are 
followed in the establishment of condominium and cooperative oppor-
tunities, and to provide appropriate relief where long-term leases of 
recreation and other cooperative- and condominium-related facilities 
are determined to be unconscionable. 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1673 
CONVERSION LENDING 
SEC. 603. It is the sense of the Congress that lending by federally 15 use 3602. 
insured lending institutions for the conversion of rental housing to 
condominiums and cooperative housing should be discouraged where 
there are adverse impacts on housing opportunities of the low- and 
moderate-income and elderly and handicapped tenants involved. 
DEFINITIONS 
SEC. 604. For the purpose of this title— 
15 use 3603. 
(1) "affiliate of a developer" means any person who controls, is 
controlled by, or is under common control with a developer. A 
person "controls" a developer if the person (A) is a general 
partner, officer, director, or employer of the developer, (B) 
directly or indirectly or acting in concert with one or more other 
persons, or through one or more subsidiaries, owns, controls, 
holds with power to vote, or holds proxies representing, more 
than 20 per centum of the voting interests of the developer, (C) 
controls in any manner the election of a majority of the directors 
of the developer, or (D) has contributed more than 20 per centum 
of the capital of the developer. A person "is controlled by" a 
developer if the developer (i) is a general partner, officer, director 
or employer of the person, (ii) directly or indirectly or acting in 
concert with one or more other persons, or through one or more 
subsidiaries, owns, controls, holds with power to vote, or holds 
proxies representing, more than 20 per centum of the voting 
interests of the person, (iii) controls in any manner the election of 
a majority of the directors, or (iv) has contributed more than 20 
per centum of the capital of the person; 
(2) "automatic rent increase clause" means a provision in a 
lease permitting periodic increases in the fee under the lease 
which is effective automatically or at the sole option of the lessor, 
and which provides that the fee shall increase at the rate of an 
economic, commodity, or consumer price index or at a percentage 
rate such that the actual increases in the rental payment over 
the lease term cannot be established with specificity at the time 
the lease is entered into; 
(3) "common elements" means all portions of the cooperative 
or condominium project, other than the units designated for 
separate ownership or for exclusive possession or use; 
(4) "condominium association" means the organization, whose 
membership consists exclusively of all the unit owners in the 
condominium project, which is, or will be, responsible for the 
operation, administration, and management of the condominium 
project; 
(5) "condominium project" means real estate (A) which has five 
or more residential condominium units, in each residential 
structure, and the remaining portions of the real estate are 
designated for common ownership solely by the owners of those 
units, each owner having an undivided interest in the common 
elements, and (B) where such units are or have been offered for 
sale or sold, directly or indirectly, through the use of any means 
or instruments of transportation or communication of interstate 
commerce, or the mails; 
(6) "condominium unit" means a portion of a condominium 
project designated for separate ownership; 
94 STAT. 1674 
PUBLIC LAW 96-399—OCT. 8, 1980 
(7) "conversion project" means a project, which has five or 
more residential units, which was used primarily for residential 
rental purposes immediately prior to being converted to a condo-
minium or cooperative project; 
(8) "convey or conveyance" means (A) a transfer to a purchaser 
of legal title in a unit at settlement, other than as security for an 
obligation, or (B) the acquisition by a purchaser of a leasehold 
interest for more than five years; 
(9) "cooperative association" means an organization that owns 
the record interest in the residential cooperative property or a 
leasehold of the residential property of a cooperative project and 
that is responsible for the operation of the cooperative project; 
(10) "cooperative project" means real estate (A) which has five 
or more residential cooperative units, in each residential struc-
ture, subject to separate use and possession by one or more 
individual cooperative unit owners whose interest in such units 
and in the undivided assets of the cooperative association which 
are appurtenant to the unit are evidenced by a membership or 
share interest in a cooperative association and a lease or other 
muniment of title or possession granted by the cooperative 
association as the owner of all the cooperative property, and (B) 
an interest in which is or has been offered for sale or lease or sold, 
or leased directly or indirectly, through use of any means or 
instruments of transportation or communication in interstate 
commerce or of the mails; 
(11) "cooperative property" means the real estate and personal 
property subject to cooperative ownership and all other property 
owned by the cooperative association; 
(12) "cooperative unit" means a part of the cooperative prop-
erty which is subject to exclusive use and possession by a 
cooperative unit owner. A unit may be improvements, land, or 
land and improvements together, as specified in the cooperative 
documents; 
(13) "cooperative unit owner" means the person having a 
membership or share interest in the cooperative association and 
holding a lease, or other muniment of title or possession, of a 
cooperative unit that is granted by the cooperative association as 
the owner of the cooperative property; 
(14) "developer" means (A) any person who offers to sell or sells 
his interest in a cooperative or condominium unit not previously 
conveyed, or (B) any successor of such person who offers to sell or 
sells his interests in units in a cooperative or condominium 
project and who has the authority to exercise special developer 
control in the project including the right to: add, convert, or 
withdraw real estate from the cooperative or condominium 
project, and maintain sales offices, management offices and 
rental units; exercise easements through common elements for 
the purpose of making improvements within the cooperative or 
condominium; or exercise control of the owners' association; 
(15) "interstate commerce" means trade, traffic, transporta-
tion, communication, or exchange among the States, or between 
any foreign country and a State, or any transaction which affects 
such trade, traffic, transportation, communication, or exchange; 
(16) "lease" includes any agreement or arrangement contain-
ing a condominium or cooperative unit owner's obligation, indi-
vidually, collectively, or through an association to make pay-
ments for a leasehold interest or for other rights to use or possess 
real estate, or personal property (which rights may include the 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1675 
right to receive services with respect to such real estate or 
personal property), except a lease does not include mortgages or 
other such agreements for the purchase of real estate; 
(17) "person" means a natural person, corporation, partner-
ship, association, trust or other entity, or any combination 
thereof; 
(18) "purchaser" means any person, other than a developer, 
who by means of a voluntary transfer acquires a legal or 
equitable interest in a unit, other than (A) a leasehold interest 
(including renewal options) of less than five years, or (B) as 
security for an obligation; 
(19) "real estate" means any leasehold or other estate or 
interest in, over or under land, including structures, fixtures, 
and other improvements and interests which by custom, usage, 
or law pass with a conveyance of land though not described in the 
contract of sale or instrument of conveyance. "Real estate" 
includes parcels with or without upper or lower boundaries, and 
spaces that may be filled with air or water; 
(20) "residential" means used as a dwelling; 
(21) "sale", "sale of a cooperative unit" or "sale of a condomin-
ium unit" means any obligation or arrangement for considera-
tion for conveyance to a purchaser of a cooperative or 
condominium unit, excluding options or reservations not binding 
on the purchaser; 
(22) "special developer control" means any right arising under 
State law, cooperative or condominium instruments, the associ-
ation's bylaws, charter or articles of association or incorporation, 
or power of attorney or similar agreement, through which the 
developer may control or direct the unit owners' association or 
its executive board. A developer's right to exercise the voting 
share allocated to any condominium or cooperative unit which he 
owns is not deemed a right of special developer control if the 
voting share allocated to that condominium or cooperative unit is 
the same voting share as would be allocated to the same condo-
minium or cooperative unit were that unit owned by any other 
unit owner at that time; 
(23) "State" includes the several States, the District of Colum-
bia, the Commonwealth of Puerto Rico, and the territories and 
possessions of the United States; and 
(24) "tenants' organization" means a bona fide organization of 
tenants who represent a majority of the occupied rental units in 
a rental housing project. 
EXEMPTIONS 
SEC. 605. The provisions of this title shall not apply to— 
15 USC 3604. 
(1) a cooperative or condominium unit sold or offered for sale 
by the Federal Government, by any State or local government, by 
any corporate instrumentality of the United States, or by any 
agency thereof; 
(2) a cooperative or condominium project in which all units are 
restricted to nonresidential purposes or uses; or 
(3) any lease or portion thereof— 
(A) which establishes any leasehold or other estate or 
interest in, over or under land on or in which one or more 
residential condominium or cooperative units are located, 
the termination of which will terminate the condominium or 
94 STAT. 1676 
PUBLIC LAW 96-399—OCT. 8, 1980 
cooperative project, or reduce the number of units in such 
project, or 
(B) which establishes a leasehold interest in, or other 
rights to use, possess, or gain access to, a condominium or 
cooperative unit. 
CONDOMINIUM AND COOPERATIVE CONVERSIONS 
15 use 3605. 
SEC. 606. It is the sense of the Congress that, when multifamily 
rental housing projects are converted to condominium or cooperative 
use, tenants in those projects are entitled to adequate notice of the 
pending conversion and to receive the first opportunity to purchase 
units in the converted projects and that State and local governments 
which have not already provided for such notice and opportunity for 
purchase should move toward that end. The Congress believes it is 
the responsibility of State and local governments to provide for such 
notice and opportunity to purchase in a prompt manner. The Con-
gress has decided not to intervene and therefore leaves this responsi-
bility to State and local governments to be carried out. 
FEDERAL HOUSING ADMINISTRATION INSURANCE 
15 use 3606. 
SEC. 607. Where an application for mortgage or loan insurance in 
connection with a conversion or purchase of a rental housing project 
being undertaken by a tenants' organization is submitted, the Secre-
tary of Housing and Urban Development shall expedite the process-
ing of the application in every way and shall make a final decision on 
such application at the earliest practicable time. 
OPTIONAL TERMINATION OF SELF-DEALING CONTRACTS 
15 use 3607. 
SEC. 608. (a) Any contract or portion thereof which is entered into 
after the effective date of this title, and which— 
(1) provides for operation, maintenance, or management of a 
condominium or cooperative association in a conversion project, 
or of property serving the condominium or cooperative unit 
owners in such project; 
(2) is between such unit owners or such association and the 
developer or an affiliate of the developer; 
(3) was entered into while such association was controlled by 
the developer through special developer control or because the 
developer held a majority of the votes in such association; and 
(4) is for a period of more than three years, including any 
automatic renewal provisions which are exercisable at the sole 
option of the developer or an affiliate of the developer, 
may be terminated without penalty by such unit owners or such 
association. 
O
t
>
) Any termination under this section may occur only during the 
two-year period beginning on the date on which— 
(1) special developer control over the association is terminated; 
or 
(2) the developer owns 25 per centum or less of the units in the 
conversion project, 
whichever occurs first. 
(c) A termination under this section shall be by a vote of owners of 
not less than two-thirds of the units other than the units owned by 
the developer or an affiliate of the developer. 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1677 
(d) Following the unit owners' vote, the termination shall be Effective date. 
effective ninety days after hand delivering notice or mailing notice by 
prepaid United States mail to the parties to the contract. 
CIVIL ACTION; UNCONSCIONABLE LEASES 
15 use 3608. 
Unit owners 
authorization. 
SEC. 609. (a) Cooperative and condominium unit owners through 
the unit owners' association may bring an action seeking a judicial 
determination that a lease or leases, or portions thereof, were 
unconscionable at the time they were made. An action may be 
brought under this section if each such lease has all of the following 
characteristics: 
(1) it was made in connection with a cooperative or condomin-
ium project; 
(2) it was entered into while the cooperative or condominium 
owners' association was controlled by the developer either 
through special developer control or because the developer held a 
majority of the votes in the owners' association; 
(3) it had to be accepted or ratified by purchasers or through 
the unit owners' association as a condition of purchase of a unit 
in the cooperative or condominium project; 
(4) it is for a period of more than twenty-one years or is for a 
period of less than twenty-one years but contains automatic 
renewal provisions for a period of more than twenty-one years; 
(5) it contains an automatic rent increase clause; and 
(6) it was entered into prior to June 4,1975. 
Such action must be authorized by the cooperative or condominium 
unit owners through a vote of not less than two-thirds of the owners 
of the units other than units owned by the developer or an affiliate of 
the developer, and may be brought by the cooperative or condomin-
ium unit owners through the units owners' association. Prior to 
instituting such action, the cooperative or condominium unit owners 
must, through a vote of not less than two-thirds of the owners of the 
units other than units owned by the developer or an affiliate of the 
developer, agree to enter into negotiation with the lessor and must 
seek through such negotiation to eliminate or modify any lease terms 
that are alleged to be unconscionable; if an agreement is not reached 
in ninety days from the date on which the authorizing vote was 
taken, the unit owners may authorize an action after following the 
procedure specified in the preceding sentence. 
(b) A rebuttable presumption of unconscionability exists if it is 
established that, in addition to the characteristics set forth in 
subsection (a) of this section, the lease— 
(1) creates a lien subjecting any unit to foreclosure for failure 
to make payments; 
(2) contains provisions requiring either the cooperative or 
condominium unit owners or the cooperative or condominium 
association as lessees to assume all or substantially all obliga-
tions and liabilities associated with the maintenance, manage-
ment and use of the leased property, in addition to the obligation 
to make lease payments; 
(3) contains an automatic rent increase clause without estab-
lishing a specific maximum lease payment; and 
(4) requires an annual rental which exceeds 25 per centum of 
the appraised value of the leased property as improved: Provided, 
"Annual rental. 
That, for purposes of this paragraph "annual rental" means the 
amount due during the first twelve months of the lease for all 
units, regardless of whether such units were occupied or sold 
94 STAT. 1678 
PUBLIC LAW 96-399—OCT. 8, 1980 
"Appraised 
value." 
Evidence 
presentation. 
Remedial relief. 
during that period, and "appraised value" means the appraised 
value placed upon the leased property the first tax year after the 
sale of a unit in the condominium or after the sale of a 
membership or share interest in the cooperative association to a 
party who is not an affiliate of the developer. 
Once the rebuttable presumption is established, the court, in making 
its finding, shall consider the lease or portion of the lease to be 
unconscionable unless proven otherwise by a preponderance of the 
evidence to the contrary. 
(c) Whenever it is claimed, or appears to the court, that a lease or 
any portion thereof is, or may have been, unconscionable at the time 
it was made, the parties shall be afforded a reasonable opportunity to 
present evidence at least as to— 
(1) the commercial setting of the negotiations; 
(2) whether a party has knowingly taken advantage of the 
inability of the other party reasonably to protect his interests; 
(3) the effect and purpose of the lease or portion thereof, 
including its relationship to other contracts between the associ-
ation, the unit owners and the developer or an affiliate of the 
developer; and 
(4) the disparity between the amount charged under the lease 
and the value of the real estate subject to the lease measured by 
the price at which similar real estate was readily obtainable in 
similar transactions. 
(d) Upon finding that any lease, or portion thereof, is unconscion-
able, the court shall exercise its authority to grant remedial relief as 
necessary to avoid an unconscionable result, taking into considera-
tion the economic value of the lease. Such relief may include, but 
shall not be limited to rescission, reformation, restitution, the award 
of damages and reasonable attorney fees and court costs. A defendant 
may recover reasonable attorneys fees if the court determines that 
the cause of action filed by the plantiff is frivolous, malicious, or 
lacking in substantial merit. 
(e) Nothing in this section may be construed to authorize the 
bringing of an action by cooperative and condominium unit owners' 
association, seeking a judicial determination that a lease or leases, or 
portions thereof, are unconscionable, where such unit owners or a 
unit owners' association representing them has, after the termina-
tion of special developer control, reached an agreement with a holder 
of such lease or leases which either— 
(1) sets forth the terms and conditions under which such lease 
or leases is or shall be purchased by such unit owners or 
associations; or 
(2) reforms any clause in the lease which contained an auto-
matic rent increase clause, unless such agreement was entered 
into when the leaseholder or his affiliate held a majority of the 
votes in the owners' association. 
PROHIBITIONS 
Developer, 
SEC. 610. Any provision in any lease or contract requiring unit 
reimbursement, 
owners or the owners' association, in any conversion project involv-
15 use 3609. 
ing a contract meeting the requirements of section 608 of this title or 
in any project involving a lease meeting the requirements of section 
609 of this title, to reimburse, regardless of outcome, the developer, 
his successor, or affiliate of the developer for attorneys' fees or money 
judgments, in a suit between unit owners or the owners' association 
PUBLIC LAW 96-399—OCT. 8, 1980 
94 STAT. 1679 
and the developer arising under the lease or agreement, is against 
public policy and void. 
STATE AND LOCAL JURISDICTION 
SEC. 611. Nothing in this title may be construed to prevent or limit i^ use 3610. 
the authority of any State or local government to enact and enforce 
any law, ordinance, or code with regard to any condominium, cooper-
ative, or conversion project, if such law, ordinance, or code does not 
abridge, deny, or contravene any standard for consumer protection 
established under this title. Notwithstanding the preceding sentence, 
the provisions of this title, except for the application of section 609 
and the prohibition included in section 610 as it relates to a lease with 
respect to which a cause of action may be established under section 
609, shall not apply in the case of any State or local government 
which has the authority to enact and enforce such a law, ordinance, 
or code, if, during the three-year period following the date of enact-
ment of this title, such State or local government enacts a law, 
ordinance, or code, or amendments thereto, stating in substance that 
such provisions of this title shall not apply in that State or local 
government jurisdiction. 
ADDITIONAL REMEDIES 
SEC. 612. (a) Unless otherwise limited as in section 608 or 609 of this 15 USC 3611. 
title, any person aggrieved by a violation of this title may sue at law 
or in equity. 
(b) In any action authorized by this section for a violation of section 
608 or 610 where actual damages have been suffered, such damages 
may be awarded or such other relief granted as deemed fair, just, and 
equitable. 
(c) Every person who becomes liable to make any payment under 
this section may recover contributions from any person who, if sued 
separately, would have been liable to make the same payment. 
(d) The amounts recoverable under this section may include inter-
est paid, reasonable attorneys' fees, independent engineer and 
appraisers' fees, and court costs. A defendant may recover reasonable 
attorneys' fees if the court determines that the cause of action filed by 
the plaintiff is frivolous, malicious, or lacking in substantial merit. 
JURISDICTION 
SEC. 613. The district courts of the United States, the United States 15 use 3612. 
courts of any territory, and the United States District Court for the 
District of Columbia shall have jurisdiction under this title and, 
concurrent with State courts, of actions at law or in equity brought 
under this title without regard to the amount in controversy. Any 
such action may be brought in the district wherein the defendant is 
found or is an inhabitant or transacts business, or in the district 
where the sale took place, and process in such cases may be served in 
other districts of which the defendant is an inhabitant or wherever 
the defendant may be found. No case arising under this title and 
brought in any State court of competent jurisdiction shall be removed 
to any court of the United States, except where any officer or 
employee of the United States in his official capacity is a party. 
79-194 
O—81—pt. 2 
26:qL3 
94 STAT. 1680 
PUBLIC LAW 96-399—OCT. 8, 1980 
LIMITATION OF ACTIONS 
15 use 3613. 
SEC. 614. No action shall be maintained to enforce any right or 
liability created by this title unless brought within six years after 
such cause of action accrued, except that an action pursuant to 
section 609 must be brought within four years after the date of 
enactment of this title. 
CONTRARY STIPULATIONS VOID 
15 use 3614. 
SEC. 615. Any condition, stipulation, or provision binding any 
person to waive compliance with any provisions of this title shall be 
void. 
ADDITIONAL REMEDIES 
15 use 3615. 
SEC. 616. The rights and remedies provided by this title shall be in 
addition to any and all other rights and remedies that may exist 
under Federal or State law. 
SEPARABILITY 
15 use 3616. 
SEC. 617. If any provisions of this title or the application thereof to 
any person or circumstance is held invalid, the remainder of this title 
shall not be affected thereby. 
EFFECTIVE DATE 
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SEC. 618. The provisions of this title shall become effective upon 
^°^^- 
enactment, except that section 609, and the prohibition included in 
section 610 as it relates to a lease with respect to which a cause of 
action may be established under section 609, shall become effective 
one year after enactment. 
Approved October 8, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 96-979 and supplemental reports Pts. II and III, all accompa-
nying H.R. 7262 (all from eomm. on Banking, Finance, and 
Urban Affairs) and No. 96-1420 (Oomm. of eonference). 
SENATE REPORTS: No. 96-716 accompanying S. 2716, No. 96-724 accompanying S. 
2711, and No. 96-736 accompanying S. 2719 (all from Comm. on 
Banking, Housing, and Urban Affairs). 
eONGRESSIONAL RECORD, Vol. 126 (1980): 
June 20, 21, considered and passed Senate. 
Aug. 18, 21, 22, H.R. 7262 considered and passed House; passage vacated and S. 
2719, amended, passed in lieu. 
Sept. 30, Senate and House agreed to conference report. 
WEEKLY eOMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 16, No. 41: 
Oct. 8, Presidential statement.