An Act to extend and amend laws relating to housing, urban renewal, and community facilities, and for other purposes.
PL 88-560 (S.3049), enacted 09/02/1964

78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1%4 
769 
Public Law 88-560 
A N A C T 
September 2, 1964 
To extend and amend laws relating to housing, urban renewal, and community 
[s. 3049] 
facilities, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That this Act may jg"°"*'"^ "
"
"
"
^ °^ 
be cited as the "Housing Act of 1964". 
TITLE I—AMENDMENTS TO T H E NATIONAL HOUSING 
ACT 
71 Stat. 297. 
12 u s e 1703. 
12 u s e 1709. 
75 Stat. 157. 
12 u s e 1709. 
TIME LIMIT 
ON 
FIIA 
RECOUPMENT 
OF TITI.E I 
INSURANCE 
PAYMENTS 
SEC. 101. Section 2(g) of the National Housing Act is amended by 
striking out "after December 31, 1957,". 
MORTGAGE LIMITS FOR HOMES UNDER SECTION 2 0 3 PROGRAMS 
SEC. 102. (a) Section 203(b)(2) of the National Housing Act is 
amended 
by striking out "$25,000", "$27,500", "$27,500", and 
"$35,000" and inserting in lieu thereof "$30,000", "$32,500", "$32,500", 
and "$37,500", respectively. 
(b) Section 203(i) of such Act is amended by striking out "$9,000" 
and inserting in lieu thereof "$11,000". 
HOME 
I M P R O V E M E N T LOANS OUTSIDE OF URBAN RENEWAL AREAS 
SEC. 103. Section 203(k) of the National Housing Act is amended 
by— 
(1) striking out in clause (2) "economically sound" and 
inserting in lieu thereof "an acceptable risk"; 
(2) striking out clause (4) and inserting in lieu thereof the 
following: "(4) insurance benefits shall be paid in cash out of 
the Section 203 Home Improvement Account or in debentures 
executed in the name of such Account"; and 
(3) striking out in the third sentence "Debentures issued with 
respect to loans insured under this subsection shall be issued" and 
inserting in lieu thereof "Insurance benefits paid with respect to 
loans insured under this subsection shall be paid". 
ADDITIONAL RELIEF FOR HOME MORTGAGORS I N DEFAULT DUE TO 
CIRCUMSTANCES BEYOND THEIR CONTROL 
SEC. 104. (a) Section 204(a) of the National Housing Act is 
13 use mo 
amended by striking out the fourth proviso and inserting in lieu 
thereof the following: ": And provided further, That with respect 
to any mortgage covering a one-, two-, three-, or four-family resi-
dence insured under this Act, if the Commissioner finds, after notice 
of default, that the default was due to circumstances beyond the 
control of the mortgagor, he may, upon such terms and conditions 
as he may prescribe, (1) approve the request of the mortgagee for 
an extension of the time for the curing of the default and ot the time 
for commencing foreclosure proceedings or for otherwise acquiring 
title to the mortgaged property to such time as the Commissioner 
may determine is necessary and desirable to enable the mortgagor to 
complete the mortgage payments, including an extension of time 
beyond the stated maturity of the mortgage, and in the event of a 
subsequent foreclosure or acquisition of me property by other means 
the Commissioner is authorized to include in the debentures an 
770 
PUBLIC LAW 88-560-SEPT. 2, 1964 
[78 STAT. 
iimount wiual to any iinimid mortgage iuteiest, or (2) approve a 
iiioditication of the tei-nis of the mortgage for the purpose of 
(•hanging the amortization provisions by recasting, over the remain-
ing term of the mortgage or over such longer period as may be 
approved by the Commissioner, the total unpaid amount then due, as 
determined by tiie Commissioner, with the modification to become 
effective currently or to become effective upon the termination of an 
agreed-upon extension of the period for curing the default; and the 
principal amount of the mortgage, as modified, shall be considered to 
i)e the 'original principal obligation of the mortgage' as that term is 
nsed in this Act for the purpose of computing the total face value of 
the debentures to be issued or the cash payment to be made by the 
(Commissioner to a mortgagee". 
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^^^ Section 280 of such Act is amended by striking out the first 
sentence and inserting in lieu thereof the following: "Upon receiving 
notice of the default of any mortgage coverin|r a one-, two-, three-, or 
four-family residence heretofore or hereafter msured under this Act, 
the Commissioner, in his discretion and for the purpose of avoiding 
foreclosure of the mortgage, and notwithstanding the fact that he has 
previously approved a i-equest of the mortgagee for an extension of 
the time for curing the default and of the time for commencing fore-
closure 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 acquire the loan and security therefor upon pay-
ment of the insurance benefits in an amount equal to the impaid prin-
cipal balance of the loan plus any unpaid mortgage interest plus reim-
bursement for such costs and attorney's fees as the Commissioner finds 
were properly incurred in connection with the defaulted mortgage and 
its assignment to the Commissioner, and for any proper advances 
theretofore made by the mortgagee under the provisions of the mort-
gage. After the acquisition of such mortgage hy the Commissionei', 
the mortgagee shall have no further rights, liabilities, or obligations 
with respect thei-eto." 
<HAN<;KIS I N F H A I N I S I H A N C E B E N E F I T S A N D siMPLiFK ATION O F 
PAYMENT PROCEDURES 
1
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SEC. 10.5. (a) Section 204 of the National Housing Act is amended 
by— 
(1) striking out in the third sentence of subsection (a) the 
words "insurance on the mortgaged property, and any mortgage 
insurance premiums paid after either of such dates" and insert-
ing in lieu thereof the following: "charges for the administration, 
operation, maintenance and i-epair of community-owned property 
or the maintenance and repair of the mortgaged property, the 
obligation for which arises out of a covenant filed for record and 
approved by the Commissioner prior to the insurance of the mort-
gage, insurance on the mortgaged property, and any mortgage 
insurance premiums"; 
(2) inserting after the colon following the second proviso of 
subsection (a) two additional provisos as follows: " ^ n ^ provided 
further, That with respect to a mortgage accepted for insurance 
pursuant to a commitment issued on or after the date of enact-
ment of the Housing Act of 1964, the Commissioner may include 
in debentures or in the cash payment an amount not to exceed the 
foreclosure, acquisition, and conveyance costs actually paid by 
the mortgagee and approved by the Commissioner: And 
provided 
further, That wnth respect to a mortgage accepted for insurance 
pursuant to a commitment issued prior to the date of enactment 
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1964 
771 
of the Housing Act of 1964, the Commissioner may, with the 
consent of the mortgagee (in lieu of issuing a certificate of claim 
as provided in subsection (e)), include in debentures or in the 
cash payment, in addition to amounts otherwise allowed for such 
costs, an amount not to exceed one-third of the total foreclosure, 
acquisition, and conveyance costs actually paid by the mortgagee 
and approved by the Commissioner, but in no event may the total 
allowance for such costs exceed the amount actually paid by the 
mortgagee:"; 
(3) striking out "and the payment of insurance premiums" in 
^^ ^^^ '^^'°-
the third proviso in subsection (a) (as numbered prior to the 
amendment made by paragraph (2)), and by inserting before the 
colon at the end of such proviso the following: ": And 
provided 
further, That where the claim is paid in cash there shall be in-
cluded in the cash payment an amount equivalent to the compensa-
tion for loss of debenture interest that would be included in com-
puting debentures if such claim were being paid in debentures"'; 
(4^ striking out "$50" in the second sentence of subsection (c) 
and inserting in lieu thereof "$850"; 
(5) striking out in the second sentence of subsection (d) ", ex- 
^^ ^*^*- '^°' 
cept that debentures issued pursuant to the provisions of section 
220(f), section 221(g), and section 233 may be dated as of the 17^5/^^171^^''' 
date the mortgage is assigned (or the property is conveyed) to the 
Commissioner, and" and inserting in lieu thereof ": 
Provided, 
That debentures issued pursuant to claims for insurance filed on or 
after the date of enactment of the Housing Act of 1964 shall be 
dated as of the date of default or as of such later date as the 
Commissioner, in his discretion, may establish by regulation. 
The debentures"; 
(6) (A) inserting " (1)" after " (e)" in subsection (e); striking 
^2 st^au u.^ 
out "The certificate" in such subsection and inserting in lieu 
thereof "Subject to paragraph (2), the certificate"; and adding 
at the end of such subsection a new paragraph as follows: 
"(2) A certificate of claim shall not be issued and the pro-
visions of paragraph (1) of this subsection shall not be applicable 
in the case of a mortgage accepted for insurance pursuant to a 
commitment issued on or after the date of enactment of the 
Housing Act of 1964."; 
(B) striking out "and a certificate of claim" in the second 
sentence of subsection (a) and inserting in lieu thereof "and 
(subject to subsection (e) (2)) a certificate of claim"; 
(7) striking out the first paragraph of subsection (f) and 
inserting in lieu thereof the following: 
"(f)(1) If, after deducting (in such manner and amount as the 
Commissioner shall determine to be equitable and in accordance with 
sound accounting practice) the expenses incurred by the Commis-
sioner, the net amount realized from any property conveyed to the 
Commissioner under this section and the claims assigned therewith 
exceed the face value of the debentures issued and the cash paid in 
exchange for such property plus all interest paid on such debentures, 
such excess shall be divided as follows:"; 
(8) redesignating the second paragraph of subsection (f) as 
paragraph (i), and striking out "207; and" at the end of the 
paragraph and inserting in lieu thereof the following: "207: 
Provided, That on and after the date of enactment of the Hous-
ing Act of 1964, any excess remaining after payment to the 
holder of the full amount of the certificate of claim, together 
with the accrued interest increment thereon, shall be retained by 
52 Stat. 14. 
12 use 1710. 
772 
PUBLIC LAW 88-560-SEPT. 2, 1964 
[78 STAT. 
the Commissioner and credited to the applicable insurance fund; 
and"; 
(9) redesignating the third paragraph of subsection (f) as 
paragraph (ii); 
(10) designating the last paragraph of subsection (f) as para-
graph (2) and inserting the following before the period at the 
end thereof: ": Provided^ That the settlement authority created 
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4
2
^
6 
^y ^^^ Housing Amendments of 1955 shall be terminated with 
note. 
respect to any certificates of claim outstanding as of the date of 
enactment of the Housing Act of 1964"; and 
(11) inserting at the end of subsection (f) a new paragraph 
as follows: 
"(3) With the consent of the holder thereof, the Commissioner is 
authorized, without awaiting the final liquidation of the Commis-
sioner's interest in the property, to settle any certificate of claim 
issued pursuant to subsection (e), with respect to which settlement 
had not been effected prior to the date of enactment of the Housing 
Act of 1964, by making payment in cash to the holder thereof of 
such amount not exceeding the face amount of the certificate of claim, 
together with the accrued interest thereon, as the Commissioner may 
consider appropriate: Provided^ That in any case where the certificate 
of claim is settled in accordance with the provisions of this paragraph, 
any amounts realized after the date of enactment of the Housing 
Act of 1964, in the liquidation of the Commissioner's interest in the 
property, shall be retained by the Commissioner and credited to the 
applicable insurance fund." 
1
2 use 1713. 
J^^ Section 207(g) of such Act is amended by adding at the end 
thereof the following: "Notwithstanding any other provision of this 
Act, upon receipt, after the date of enactment of the Housing Act of 
1964, of an application for insurance benefits on a mortgage insured 
under this Act, the Commissioner may terminate the mortgagee's 
obligation to pay premium charges on the mortgage." 
(c) (1) Sections 203(k), 220(f) (3), 220(h) (6), and 233(g) of such 
1
2 use 1709, 
Act are each amended by adding at the end thereof the following: 
1715k, L
7
1
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X
. 
"jf ^jje insurance payment is made in cash, there shall be added to 
such payment an amount equivalent to the interest which the deben-
tures would have earned, computed to a date to be established pur-
suant to regulations issued by the Commissioner." 
1
2 use m
^
5
Z 
(^) Section 221(g)(3) of such Act is amended by striking out 
"; or" at the end thereof and inserting in lieu thereof a period and 
the following: "If the insurance is paid in cash, there shall be added 
to such payment an amount equivalent to the interest which the 
debentures would have earned, computed to a date to be established 
pursuant to regulations issued by the Commissioner." 
(d) Section 604 of the National Housing Act is amended by-— 
(1) inserting after the colon following the first proviso in 
subsection (a) an additional proviso as follows: '•^Provided 
further. That with respect to any debentures issued on or after 
the date of enactment of the Housing Act of 1964, the Commis-
sioner may, with the consent of the mortgagee (in lieu of issuing 
a certificate of claim as provided in subsection (e)), include in 
debentures, in addition to amounts otherwise allowed for such 
costs, an amount not to exceed one-third of the total foreclosure, 
acquisition, and conveyance costs actually paid by the mortgagee 
and approved by the Commissioner, but in no event may the total 
allowance for such costs exceed the amount actually paid by the 
mortgagee:"; 
(2) striking out "$50" in the second sentence of subsection (c) 
and inserting in lieu thereof "$350"; 
55 Stat. 58. 
12 use 1739. 
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1964 
773 
(8) striking" out "default, and" in the second sentence of sub-
section (d) and inserting in lieu thereof the following: "default, 
except that debentures issued pursuant to claims for insurance 
Kled on or after the date of enactment of the Housing Act of 
1964, shall be dated as of the date of default or as of such later 
date as the Commissioner, in his discretion, may establish by 
regulation. 
The debentures"; 
(4) striking out the first paragraph of subsection (f) and 
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3
9
. 
inserting in lieu thereof the following: 
"(f)(1) If, after deducting (in such manner and amount as the 
(Commissioner shall determine to be equitable and in accordance with 
sound accounting practice) the expenses incurred by the Commis-
sioner, the net amount realized from any property conveyed to the 
Commissioner under this section and the claims assigned therewith 
exceed the face value of the debentures issued and the cash paid in 
exchange for such property plus all interest paid on such debentures, 
sucli excess shall be divided as follows:"; 
(5) redesignating the second paragraph of subsection (f) as 
paragraph (i), and striking out "property; and"' at the end of the 
paragraph and inserting in lieu thereof the following: "property: 
Provided^ That on and after the date of enactment of the Housing 
Act of 1964, any excess remaining after payment to the holder 
of the full amount of the certificate of claim shall be retained by 
the Commissioner and credited to the War Housing Insurance 
Fund;and"; 
(6) redesignating the third paragraph of subsection (f) as 
paragraph (ii); 
(7) designating the last paragraph of subsection (f) as para-
graph (2) and inserting the following before the period at the 
end thereof: ": Provided^ That the settlement authority created by 
the Housing Ajnendments of 1955 shall be terminated with respect 
^^ ^*|^-1'^|^ 
to any certificate of claim outstanding as of the date of enactment note. 
of the Housing Act of 1964"; and 
(8) inserting at the end of subsection (f) a new paragraph as 
follows: 
"(3) With the consent of the holder thereof, the Connnissioner is 
authorized to settle, without awaiting the final liquidation of the Com-
missioner's interest in the property, any certificate of claim issued 
pursuant to subsection (e), with respect to which a settlement had not 
been effected prior to the date of enactment of the Housing Act of 1964, 
by making payment in cash to the holder thereof of such amount, not 
exceeding the face amount of the certificate of claim, together with the 
accrued interest increment thereon, as the Commissioner may consider 
appropriate: Provided^ That in any case where the certificate of claim 
is settled in accordance with the provisions of this paragraph, any 
amounts realized after the date of enactment of the Housing Act of 
1964, in the liquidation of the Commissioner's interest in the property, 
shall be retained by the Commissioner and credited to the applicable 
insurance fund." 
f e) Section 904 of such Act is amended by— 
J^ ^^l: ^^^^^ 
(1) inserting after the colon following the fii-st proviso in sub-
section (a) an additional proviso as follows: '•^Provided further^ 
That with respect to any debentures issued on or after the date of 
enactment of the Housing Act of 1964, the Commissioner may, 
with the consent of the mortgagee (in lieu of issuing a certificate of 
claim as provided in subsection (e)), include in debentures, in 
addition to amounts otherwise allowed for such costs, an amount 
not to exceed one-third of the total foreclosure, acquisition, and 
conveyance costs actually paid by the mortgagee and approved 
774 
PUBLIC LAW 88-560-SEPT. 2, 1%4 
[78 STAT. 
by the Comniissioner, but in no event may the total sillowance for 
such costs exceed the amount actually paid by the mortgagee:"; 
(2) striking out "loO'* in the second sentence of subsection (c) 
and inserting in lieu thereof "$350"; and 
(3) striking out "default, and" in the second sentence of sub-
section (d) and inserting in lieu thereof the following: "default, 
except that debentures issued pursuant to claims for insurance 
tiled on or aft-er the date of enactment of the Housing Act of 
1964 shall be dated as of the date of default or as of such lat-er date 
as the Commissioner, in his discretion, may establish by regula-
tion. 
The debentures". 
i750c^^^ ^^^^* 
^t^ Sections 604 and 904 of such Act are each aanended by striking 
out in the third sentence of subsection (a) "paid after either of such 
dates". 
MAXIMUM AMOUNT OF SECTION 207 RENTAL HOUSING M0R1X3AGES 
i2usci"i3 
^^^- 
^^^- Section 207(c)(2) of the National Housing Act is 
amended by striking out all that follows the first colon and precedes 
"to mortgages on housing in Alaska", and inserting in lieu thereof the 
following: ^^Provided, That this limitation shall not apply". 
FAMILY U N I T LIMITS ON FHA RENTAL HOUSING 
70 Stat. 1092. 
s^^c. 107. (a) Scction 207(c)(3) of the National Housing Act is 
amended by striking out the first paragraph and inserting in lieu 
thereof the following: 
"(3) not to exceed, for such part of the property or project as 
may be attributable tx> dwelling use (excluding exterior land im-
provements as defined by the Commissioner), $9,000 per family 
unit without a bedroom, $12,500 per family unit with one bed-
room, $15,000 per family unit with two bedrooms, and $18,500 per 
family unit with three or more bedrooms or not to exceed $1,800 
per space or $500,000 per mortgage for trailer courts or parks; 
except that as to projects to consist of elevator-type structures the 
Commissioner may, in his discretion, increase the dollar amount 
limitations per family unit to not to exceed $10,500 per family 
unit without a bedroom, $15,000 per family unit with one bedroom, 
$18,000 per family unit with two bedrooms, and $22,500 per family 
unit with three or more bedrooms, as the case may be, to compen-
sate for the higher costs incident to the construction of elevator-
type structures of sound standards of construction and design; 
and except that the Commissioner may, by regulation, increase 
any of the foregoing dollar amount limitations contained in this 
paragraph by not to exceed 45 per centum in any geographical 
area where he finds that cost levels so require." 
^^ use ^^^5e 
^'^) Section 213(b) (2) of such Act is amended by striking out all 
that precedes the third proviso and inserting in lieu thereof the 
following: 
"(2) not to exceed, for such part of the property or project as 
may be attributable to dwelling use (excluding exterior land 
improvements as defined by the Commissioner), $9,000 per family 
unit without a bedroom, $12,500 per family unit with one bed-
room, $15,000 per family unit with two bedrooms, and $18,500 
per family unit with three or more bedrooms, and not to exceed 
97 per centum of the amount which the Commissioner estimates 
will be the replacement cost of the property or project when the 
proposed physical improvements are completed: Provided, 
That 
as to projects to consist of elevator-type stmctures the Commis-
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1964 
775 
sioner may, in his discretion, increase the dollar amount limita-
tions per family unit to not to exceed $10,500 per family unit 
without a bedroom, $15,000 per family unit with one bedroom, 
$18,000 per family unit with two bedrooms, and $22,500 per 
family unit with three or more bedrooms, as the case may be, to 
compensate for the higher costs incident to the construction of 
elevator-type structures of sound standards of construction and 
design: Provided further^ That the Commissioner may, b^ regu-
lation, increase any of the foregoing dollar amount limitations 
contained in this paragraph by not to exceed 45 per centum in 
any geographical area where he finds that cost levels so require". 
(c) Section 220(d) (3) (B) (iii) of such Act is amended to read as 
^s stat. 598. 
follows: 
"(iii) not exceed, for such part of the property or project as 
may be attributable to dwelling use (excluding exterior land 
improvements as defined by the Commissioner), $9,000 per family 
unit without a bedroom, $12,500 per family unit with one bed-
room, $15,000 per family unit with two bedrooms, and $18,500 
per family unit with three or more bedrooms; except that as to 
projects to consist of elevator-type structures the Commissioner 
may, in his discretion, increase the dollar amount limitations per 
family unit to not to exceed $10,500 per family unit without a 
bedroom, $15,000 per family unit with one bedroom, $18,000 per 
family unit with two bedrooms, and $22,500 per family unit with 
three or more bedrooms, as the case may be, to compensate for 
the higher costs incident to the construction of elevator-type 
structures of sound standards of construction and design; and 
except that the Commissioner may, by regulation, increase any 
of the foregoing dollar amount limitations contained in this 
clause by not to exceed 45 per centum in any geographical area 
where he finds that cost levels so require: Provided^ That nothing 
contained in this subparagraph shall preclude the insurance of 
mortgages covering existing multifamily dw^ellings to be rehabili-
tated or reconstructed for the purposes set forth in subsection 
(a) of this section; and". 
(d) (1) Section 221(d) (3) (ii) of such Act is amended to read as 
]\ f
*
f
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- /so. 
follows: 
" (ii) not exceed, for such part of the property or project as may 
be attributable to dwelling use (^excluding exterior land improve-
ments as defined by the Commissioner), $8,000 per family unit 
without a bedroom, $11,250 per family unit with one bedroom, 
$13,500 per family unit with two bedrooms, and $17,000 per family 
unit with three or more bedrooms; except that as to projects to 
consist of elevator-type structures the Commissioner may, in 
his discretion, increase the dollar amount limitations per family 
unit to not to exceed $9,500 per family unit without a bedroom, 
$13,500 per family unit with one bedroom, $16,000 per family unit 
with two bedrooms, and $20,000 per family unit with three or 
more bedrooms, as the case may be, to compensate for the higher 
costs incident to the construction of elevator-type structures of 
sound standards of construction and design; and except that the 
Commissioner may, by regulation, increase any of the foregoing 
dollar amount limitations contained in this clause by not to exceed 
45 per centum in any geographical area where he finds that cost 
levels so require; and" 
(2) Section 221(d) (4) (ii) of such Act is amended to read as 
follows: 
" (ii) not exceed, for such part of the property or project as may 
be attributable to dw^elling use (excluding exterior land improve-
31-667 0-65—52 
776 
PUBLIC LAW 88-560-SEPT. 2, 1964 
[78 STAT. 
ments as defined by the Commissioner), $8,000 per family unit 
without a bedroom, $11,250 per family unit with one bedroom, 
$13,500 per family unit with two bedrooms, and $17,000 per family 
unit with three or more bedrooms; except that as to projects to 
consist of elevator-type structures the Commissioner may, in his 
discretion, increase the dollar amount limitations per family unit 
to not to exceed $9,500 per family unit without a bedroom, $13,500 
per family unit with one bedroom, $16,000 per family unit with 
two bedrooms, and $20,000 per family unit with three or more 
bedrooms, as the case may be, to compensate for the higher costs 
incident to the construction of elevator-type structures of sound 
standards of construction and design; and except that the Com-
missioner may, by regulation, increase any of the foregoing dollar 
amount limitations contained in this clause by not to exceed 45 
per centum in any geographical area where he finds that cost 
levels so require;". 
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(^) Section 231(c) (2) of such Act is amended to read as follows: 
" (2) not exceed, for such part of the property or project as may 
be attributable to dwelling use (excludmg exterior land improve-
ments as defined by the Commissioner), $8,000 per family unit 
without a bedroom, $11,250 per family unit with one bedroom, 
$13,500 per family unit with two bedrooms, and $17,000 per family 
unit with three or more bedrooms; except that as to projects to 
consist of elevator-type structures the Commissioner may, in his 
discretion, increase the dollar amount limitations per family unit 
to not to exceed $9,500 per family unit without a bedroom, $13,500 
per family unit with one bedroom, $16,000 per family unit with 
two bedrooms, and $20,000 per family unit with three or more 
bedrooms, as the case may be, to compensate for the higher costs 
incident to the construction of elevator-type structures of sound 
standards of construction and design; and except that the Com-
missioner may, by regulation, increase any of the foregoing dollar 
amount limitations contained in this paragraph by not to exceed 
45 per centum in any geographical area Avhere he finds that cost 
levels so require;". 
u use f748h.2 
(*) (^) Clause (2) in the first sentence of section 810(f) of such Act 
is amended by striking out "$2,500 per room (or $9,000 per family 
unit if the number of rooms in such property or project is less than 
four per family unit)" and inserting in lieu thereof "$9,000 per family 
unit without a bedroom, $12,500 per family unit with one bedroom, 
$15,000 per family unit with two bedrooms, and $18,500 per family 
unit with three or more bedrooms". 
(2) The second sentence of section 810(f) of such Act is amended 
to read as follows: "The Commissioner may, by regulation, increase 
any of the foregoing dollar amount limitations contained in this para-
graph by not to exceed 45 per centum in any geographical area where 
he finds that cost levels so require." 
(g) If the Federal Housing Commissioner determines that it would 
be inequitable to apply the provisions of the National Housing Act 
as amended by this section to a project which had been submitted for 
his consideration prior to the date of the enactment of this Act, such 
provisions may be applied to such project without regard to the amend-
ments made by this section. 
ELIMINATION OF MANDATORY ACQUISITION OR FORECLOSURE W I T H l N ONE 
YEAR OF MULTIFAMILY PROJECT I N DEFAULT 
52 Stat. 20. 
SEC. 108. Section 207(k) of the National Housing Act is amended 
^^ 
" 
by striking out the second sentence. 
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1964 
777 
SUPPLEMENTARY COOPERATIVE LOANS UNDER SECTION 2 1 3 ( j ) 
75 Stat. 179. 
12 u s e 1715e. 
SEC. 109. (a) Section 213(j)(l) of the National Housing Act is 
amended— 
(1) by striking out "or" at the end of clause (A); 
(2) by striking out the period at the end of clause (B) and 
inserting in lieu thereof "; or"; and 
(3) by adding at the end thereof the following new clause: 
"(C) Cooperative purchases and resales of memberships in 
order to provide necessary refinancing for resales of member-
ships which involve increases in equity; but in such resales by the 
cooperative the downpayments by the new members shall not be 
less than those made on the original sales of such memberships." 
(b) Section 305(e) of such Act is amended by adding at the end yj^stat^^eeg^'' 
thereof the following new sentence: "Without regard to any of the 
1
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limitations of this subsection except the total amount of authoriza-
tions available, the Association is authorized to enter into advance 
commitment contracts and purchase transactions on supplementing 
cooperative loans with respect to which the Federal Housing Com-
missioner shall have issued, pursuant to section 213(j), either a 
commitment to insure or a statement of eligibility; but such com-
mitments and purchases shall be made solely where there is a man-
agement-type cooperative involved which is certified by the Federal 
Housing Commissioner as a consumer cooperative." 
MORTGAGE LIMITS UNDER SECTION 2 20 SALES HOUSING MORTGAGE 
INSURANCE 
PROGRAM 
SEC. 110. Section 220(d) (3) (A) (i) of the National Housing Act 
1
2 use 1715k. 
is amended by striking out "$25,000", "$27,500", "$30,000", "$35,000", 
and "$35,000" and inserting in lieu thereof "$30,000", "$32,500", 
"$32,500", "$37,500", and "$37,500", respectively. 
MORTGAGE LIMITS UNDER SECTION 2 2 0 MULTIFAMILY HOUSING 
MORTGAGE INSURANCE 
PROGRAM 
SEC 111. Section 220(d) (3) (B) (i) of the National Housing Act 
73 stat. ess. 
is amended by striking out "$20,000,000" and inserting in lieu thereof 
"$30,000,000". 
LOANS TO COVER T H E COST OF PUBLIC IMPROVEMENTS 
SEC. 112. (a) The second sentence of section 220(h)(1) of the 
National Housing Act is amended to read as follows: "As used in 
75 stat. 154, 
this subsection— 
" (A) the term 'home improvement loan' means a loan, advance 
of credit, or purchase of an obligation representing a loan or 
advance of credit made— 
"(i) for the purpose of financing the improvement of an 
existing structure (or in connection with an existing struc-
ture) which was constructed not less than ten years prior to 
the making of such loan, advance of credit, or purchase, and 
which is used or will be used primarily for residential pur-
poses: Provided^ That a home improvement loan shall 
include a loan, advance, or purchase with respect to the 
improvement of a structure which was constructed less than 
ten years prior to the making of such loan, advance, or pur-
chase if the proceeds are or will be used primarily for major 
structural improvements, or to correct defects which were not 
known at the time of the completion of the structure or 
1709 
778 
PUBLIC LAW 88-560-SEPT. 2, 1964 
[78 STAT. 
which were caused by fire, flood, windstorm, or other cas-
ualty ; or 
" (ii) for the purpose of enabling the borrower to pay that 
part of the cost of the construction or installation of side-
walks, curbs, gutters, street paving, street lights, sewers, or 
other public improvements, adjacent to or in the vicinity of 
property owned by him and used primarily for residential 
purposes, which is assessed against him or for which he is 
otherwise legally liable as the owner of such property; 
"(B) the term 'improvement' means conservation, repair, resto-
ration, rehabilitation, conversion, alteration, enlargement, or 
remodeling; and 
"(C) the term 'financial institution' means a lender approved 
by the Commissioner as eligible for insurance under section 2 or 
09 "^^ ^^°^' 
^ mortgagee approved under section 203 (b) (1)." 
75 Stat. 155. 
(b) Sectiou 220(h) (2) (i) of such Act is amended by inserting 
1
2 use 1715k. 
before the semicolon at the end thereof the following: ", and be limited 
as required by paragraph (11)". 
(c) Section 220 (h) of such Act is further amended by adding at the 
end thereof the following new paragraph: 
"(11) Notwithstanding any other provision of this Act, no home 
improvement loan made in whole or in part for the purpose specified in 
clause (A) (ii) of the second sentence oi paragraph (1) shall be insured 
under this subsection if such loan (or the portion thereof which is 
attributable to such purpose), when added to the aggregate principal 
balance of any outstanding loans insured under this subsection or sec-
tion 203 (k) which were made to the same borrower for the purpose 
so specified (or the portion of such aggregate balance which is attrib-
utable to such purpose), would exceed $10,000." 
HOME IMPROVEMENT 
LOANS ON PROPERTY HELD UNDER 
LEASE 
SEC. 113. Section 220(h) (2) (vi) of the National Housing Act is 
amended by striking out "a period of not less than 50 years to run from 
the date oi the loan" and inserting in lieu thereof "an expiration date 
in excess of 10 years later than the maturity date of the loan". 
F H A 
SECTION 
2 2 1 
HOUSING 
FOR LOW- 
OR MODERATE-INCOME 
PERSONS 
SEC. 114. (a) Section 221(d)(3) of the National Housing Act is 
amended by inserting after "or association" the following: ", or other 
mortgagor approved by the Commissioner, and". 
(b) Subsection (e) of section 221 of such Act is amended to read as 
follows: 
"(e) (1) A mortgagor which may be approved by the Commissioner 
as provided in subsection (d)(3) includes a mortgagor which, as a con-
dition of obtaining insurance of the mortgage and prior to the submis-
sion of its application for such insurance, has entered into an agreement 
(in form and substance satisfactory to the Commissioner) with a 
private nonprofit corporation eligible for an insured mortgage under 
the provisions of subsection (d) (3), that the mortgagor will sell the 
project when it is completed to the corporation at the actual cost of the 
project, as certified pursuant to section 227 of this Act. 
The mort-
gagor to whom the property is sold shall be regulated or supervised 
by the Commissioner as provided in subsection (d) (3) to effectuate 
its purposes. 
"(2) The Commissioner may at any time, under such terms and 
conditions as he may prescribe, consent to the release of the mortgagor 
from his liability under the mortgage or the credit instrument secured 
68 Stat. 599. 
12 u s e 1715Z. 
12 u s e 1715r, 
75 Stat. 150. 
12 u s e 171L5i. 
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1964 
779 
thereby, or consent to the release of parts of the mortgaged property 
from the lien of the mortgage." 
(c) Section 221(d) (3) of such Act is amended by inserting before 
the colon at the end of the first proviso in clause (iii) : ": Provided 
further^ That in the case of any mortgagor other than a nonprofit cor-
poration or association, cooperative (including an investor-sponsor), 
or public body, or a mortgagor meeting the special requirements of sub-
section (e) (1), the amount of the mortgage shall not exceed 90 per 
centum of the amount otherwise authorized under this section". 
(d) The last sentence of section 221(f) of such Act is amended ]>y 
striking out "July 1, 1965", each place it appears, and inserting in 
lieu thereof "September 30, 1965". 
MORTGAGE INSURANCE FOR SERVICEMEN 
SEC. 115. Section 222(b) of the National Housing Act is amended— 73^stft ^eef ^' 
(1) by striking out "203(b) or 203 (i)" in paragraph (1) and 
1
2 use 1715m. 
inserting in lieu thereof "203(b), 203(1), or 221(d) (2),"; and 
^^^^^"^^^ ^^°^' 
(2) by striking out "such principal obligation shall not exceed 
$9,000" in paragraph (2) and inserting in lieu thereof "or section 
221 (d) (2) such prmcipal obligation shall not exceed the maximum 
limits prescribed for such section". 
PRIVATE F I N A N C I N G 
OF SALE OF FHA-ACQUIRED PROPERTIES 
SEC. 116. Section 223(c) of the National Housing Act is amended by 
^l\^l^\lf' 
striking out "limitation upon eligibility contained in this title I I " and 
12 use nisn. 
inserting in lieu thereof the following: "limitations or requirements 
contained in this title upon the eligibility of the mortgage, upon the 
payment of insurance premiums, or upon the terms and conditions of 
insurance settlement and the benefits of the insurance to be included in 
such settlement (except that in any case the payment of insurance shall 
be in debentures) ". 
73 Stat. 663. 
12 u s e I715w. 
MORTGAGE INSURANCE FOR NONPROFIT NURSING 
HOMES 
SEC. 117. Section 232(b)(1) of the National Housing Act is 
amended by inserting after "proprietary facility" the following: "or 
facility of a private nonprofit corporation or association". 
EXPERIMENTAL HOUSING 
SEC. 118. (a) Section 233(a) of the National Housing Act is 
^s stat. iss. 
amended by striking out", in the case of mortgages insured under sub- 
^ ^ "^^ 171 sx. 
section (b) (2) of this section, advances on such mortgages" and in-
serting in lieu thereof "home improvement loans, and including 
advances on mortgages". 
(b) Section 233(b) of such Act is amended to read as follows: 
"(b) To be eligible for insurance under this section, a mortgage shall 
meet the requirements of one of the other sections of this title; except 
that, in lieu of determining the appraised value or the replacement 
cost of the property in cases involving new construction or the esti-
mated cost of repair and rehabilitation or improvement in cases involv-
ing existing properties, the Commissioner shall estimate the cost of re-
placing the property using comparable conventional design, materials, 
and construction, and any limitation upon the maximum mortgage 
amount available to a nonoccupant owner shall not, in the discretion 
of the Commissioner, be applicable to moitgages insured under this 
section." 
780 
PUBLIC LAW 88-560-SEPT. 2, 1964 
[78 STAT. 
75 Stat. 158. 
12 u s e 1715x. 
(c) Section 233 of such Act is further amended by striking out sub-
sections (e) and (f) and inserting in lieu thereof the following: 
"(e) Any mortgagee or lender under a mortgage insured under 
subsection (b) shall be entitled to insurance benefits determined in the 
same manner as such benefits would be determined if such mortgage 
or loan were insured under the section of this title for which it other-
wise would have been eligible except for the experimental feature of 
the property involved." 
(d) Section 233 of such Act is further amended by redesignating 
subsections (g) and (h) as subsections (f) and (g), respectively, and 
by striking out "subsections (e) and (f)" in the first sentence of the 
subsection so redesignated as subsection (f) and inserting in lieu 
thereof "subsection (e)". 
MORTGAGE INSURANCE 
FOR 
CONDOMINIUMS 
75 Stat. 160. 
12 u s e 1715y 
SEC. 119, (a) Section 234 of the National Housing Act is amended— 
(1) by striking out the heading and inserting in lieu thereof 
"MORTGAGE INSURANCE FOR CONDOMINIUMS" ; 
(2) by striking out "structure" each place it appears and insert-
ing in lieu thereof "project" (and by striking out "structures" in 
the last sentence of subsection (c) and inserting in lieu thereof 
"projects"); 
(3) by striking out "the term 'mortgage' for the purposes of 
this section" in subsection (b) and inserting in lieu thereof "the 
term 'mortgage' for the purposes of subsection (c)"; 
(4) (A) by striking out "this section" each time it appears in 
subsection (c) and inserting in lieu thereof "this subsection"; 
(B) by striking out "under another section" in the first sen-
tence of subsection (c) and inserting in lieu thereof "under any 
section"; 
1
2 use i7i5e. 
^5^ l^y striking out "section 213" each time it appears in sub-
section (c) and inserting in lieu thereof "section 213(a) (1) 
and (2)"; 
(6) by striking out the third sentence of subsection (c) and 
inserting in lieu thereof the following: "To be eligible for insur-
ance pursuant to this subsection, a mortgage shall (A) involve a 
principal obligation in an amount not to exceed $30,000, and not 
to exceed the sum of (i) 97 per centum of $15,000 of the amount 
which the Commissioner estimates will be the appraised value of 
the family unit including common areas and facilities as of the 
date the mortgage is accepted for insurance, (ii) 90 per centum 
of such value in excess of $15,000 but not in excess of $20,000, and 
(iii) 75 per centum of such value in excess of $20,000, and (B) 
have a maturity satisfactory to the Commissioner, but not to ex-
ceed, in any event, thirty-five years from the date of the beginning 
of amortization of the mortgage or three-fourths of the Commis-
sioner's estimate of the remaining economic life of the project, 
whichever is the lesser."; 
(7) by redesignating subsection (d) as subsection (g), by re-
designating subsections (e) and (f) as subsections (i) and (j), 
respectively, and by inserting after subsection (c) the following 
new" subsections: 
"(d) In addition to individual mortgages insured under subsection 
(c), the Commissioner is authorized, in his discretion and under such 
terms and conditions as he may prescribe, to insure blanket mortgages 
(including advances on such mortgages during construction) which 
cover multifamily projects to be constructed or rehabilitated in cases 
where the mortgage is held by a mortgagor, approved by the Com-
missioner, which— 
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1964 
781 
"(1) has certified to the Commissioner, as a condition of 
obtaining the insurance of a blanket mortgage under this sub-
section, that upon completion of the multifamily project covered 
by such mortgage it intends to commit the ownership of the multi-
family project to a plan of family unit ownership under which 
each family unit would be eligible for individual mortgage insur-
ance under subsection (c) and will faithfully and diligently make 
and carry ouff all reasonable efforts to establish such plan of 
family unit ownership and to sell such family units to purchasers 
approved by the Commissioner; and 
"(2) shall be regulated or restricted by the Commissioner as 
to rents, charges, capital structure, rate of return, and methods 
of operation until the termination of all obligations of the Com-
missioner under the insurance and during such further period of 
time as the Commissioner shall be the owner, holder, or reinsurer 
of the mortgage. The Commissioner may make such contracts 
with and acquire for not to exceed $100 such stock or interest in 
such mortgagor as he may deem necessary to render effective the 
regulation and restriction of such mortgagor. The stock or inter-
est acquired by the Commissioner shall be paid for out of the 
Apartment Unit Insurance Fund, and shall be redeemed by the 
mortgagor at par at any time upon the request of the Commis-
sioner after the termination of all obligations of the Commis-
sioner under the insurance. 
"(e) To be eligible for insurance, a blanket mortgage on any multi-
family project of a mortgagor of the character described in subsection 
(d) shall involve a principal obligation in an amount— 
"(1) not to exceed $20,000,000, or not to exceed $25,000,000 if 
the mortgage is executed by a mortgagor regulated or supervised, 
under Federal or State law or by a political subdivision of a 
State or any agency thereof, as to rents, charges, and methods of 
operation; 
"(2) not to exceed 90 per centum of the amount which the 
Commissioner estimates will be the replacement cost of the proj-
ect when the proposed physical improvements are completed; 
"(3) not to exceed, for such part of the project as may be 
attributable to dwelling use (excluding exterior land improve-
ments as defined by the Commissioner), $9,000 per family unit 
without a bedroom, $12,500 per family unit with one bedroom, 
$15,000 per family unit with two bedrooms, and $18,500 per 
family unit with three or more bedrooms; except that as to 
projects to consist of elevator-type structures the Commissioner 
may, in his discretion, increase the dollar amount limitations per 
family unit to not to exceed $10,500 per family unit without a 
bedroom, $15,000 per family unit with one bedroom, $18,000 per 
family unit with two bedrooms, and $22,500 per family unit with 
three or more bedrooms, as the case may be, to compensate for 
the higher costs incident to the construction of elevator-type 
structures of sound standards of construction and design; and 
except that the Commissioner may, by regulation, increase any of 
the foregoing dollar amount limitations contained in this para-
graph by not to exceed 45 per centum in any geographical area 
where he finds that cost levels so require; and 
"(4) not to exceed an amount equal to the sum of the unit 
mortgage amounts determined under the provisions of subsection 
(c) assuming the mortgagor to be the owner and occupant of each 
family unit. 
"(f) Any blanket mortgage insured under subsection (d) shall 
provide for complete amortization by periodic payments within such 
12 use 1713. 
782 
PUBLIC LAW 88-560-SEPT. 2, 1964 
[78 STAT. 
term as the Commissioner may prescribe but not to exceed forty 
years from the beginning of amortization of the mortgage, and shall 
bear interest (exclusive of premium charges for insurance) at not to 
exceed 5 ^ per centum per annum on the amount of the principal 
obligation outstanding at any time. The Commissioner may consent 
to the release of a part or parts of the mortgaged property from the 
lien of the blanket mortgage upon such terms and conditions as he 
may prescribe and the blanket mortgage may provide for such 
release. The project covered by the blanket mortgage may include 
five or more family units and such commercial and community 
facilities 
as the 
Commissioner 
deems 
adequate 
to 
serve 
the 
occupants."; 
(8) by striking out "this section" each time it appears in the 
suDsection redesignated as subsection (g) by paragraph (7) of 
this subsection and inserting in lieu thereof "subsection (c) of 
this section"; 
(9) by inserting after the subsection redesignated as subsection 
is) 
by paragraph (7) of this subsection the following new 
subsection: 
"(h) The provisions of subsections (d), (e), (g), (h), (i), (j), (k), 
(1), (m), (n), and (p) of section 207 shall be applicable to mortgages 
insured under subsection (d) of this section, except that all references 
to the Housing Insurance Fund, or Housing Fund, shall be construed 
to refer to the Apartment Unit Insurance Fund."; and. 
(10) by amending the subsection redesignated as subsection (j) 
by paragraph (7) of this subsection to read as follows: 
"(j) The provisions of sections 225 and 230 shall be applicable to 
the mortgages insured under subsection (c) of this section." 
1
2 use 1715c. 
(jj^ Section 212(a) of such Act is amended by adding at the end 
thereof the following new sentence: "The provisions of this section 
shall also apply to the insurance of any mortgage under section 
234(d)." 
(c) Section 227 (a) of such Act is amended by striking out "or (vii)" 
and inserting in lieu thereof " (vii)", and by inserting before the semi-
colon at the end thereof ", or (viii) under section 234(d)". 
PREPAYMENT OF MORTGAGES BY NONPROFIT EDUCATIONAL 
INSTITUTIONS 
1734."^^ ^"^^' 
^^^- 120. Title V of the National Housing Act is amended by add-
ing at the end thereof the following new section: 
"PREPAYMENT or 
MORTGAGES BY NONPROFIT EDUCATION AI> 
INSTITUTIONS 
"SEC. 617. (a) Notwithstanding any other provision of this Act, no 
adjusted premium charge shall be collected in connection with the pay-
ment in full, prior to maturity, of any mortgage insured under this 
Act, if the mortgagor certifies to the Commissioner that the loan was 
paid in full by or on behalf of a nonprofit educational institution which 
mtends to use the property for educational purposes. 
"(b) The Commissioner shall refund any adjusted premium charge 
collected subsequent to July 1,1962, and prior to the date of the enact-
ment of the Housing Act of 1964, in connection with the payment in 
full, prior to maturity, of any mortgage insured under this Act, if the 
mortgagor under such mortgage makes the certification prescribed 
by subsection (a)." 
12 u s e 1715p, 
1715U. 
Ante, p. 780. 
12 use 1715r, 
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1964 
783 
CORRECTION OF SUBSTANTIAL DEFECTS IN MORTGAGED HOMES 
SEC. 121. Title V of the National Housing Act is amended by adding 
after section 517 (added by section 120 of this Act) the following new ^"^^' P- '^82. 
section: 
" E X P E N D I T U R E S TO CORRECT OR COMPENSATE FOR SUBSTANTIAL DEFECTS IN 
MORTGAGED HOMES 
"SEC. 518. (a) The Commissioner is authorized, with respect to any 
property improved by a one- to four-family dwelling approved for 
mortgage insurance prior to the beginning of construction which he 
finds to have structural defects, to make expenditures for (1) correct-
ing such defects, (2) paying the claims of the owner of the property 
arising from such defects, or (3) acquiring title to the property: 
Provided^ That such authority of the Commissioner shall exist only 
(A) if the owner has requested assistance from the Commissioner not 
later than four years (or such shorter time as the Commissioner may 
prescribe) after insurance of the mortgage, and (B) if the property 
IS encumbered by a mortgage which is insured under this Act after 
the date of enactment of the Housing Act of 1964. 
"(b) The Commissioner shall by regulations prescribe the terms 
and conditions under which expenditures and payments may be made 
under the provisions of this section, and his decisions regarding such 
expenditures or payments, and the terms and conditions under which 
the same are approved or disapproved, shall be final and conclusive 
and shall not be subject to judicial review." 
TITLE II—HOUSING FOR T H E ELDERLY AND 
HANDICAPPED 
HOUSING FOR THE ELDERLY—LOAN PROGRAM 
SEC. 201. Section 202(a) (4) of the Housing Act of 1959 is amended ^^l^^^\^^''' 
by striking out "$275,000,000" and inserting in lieu 
thereof 
i2usci7oiq. 
"$350,000,000". 
FHA SECTION 221 HOUSING FOR LOW- OR MODERATE-INCOME ELDERLY 
PERSONS 
SEC 202. Section 221(f) of the National Housing Act is amended by pllt^^^^^H^/ 
adding at the end thereof the following new sentence: "Any person 
1
2 use 1715/. 
sixty-two years of age or over shall be deemed to be a family within 
the meaning of the terms 'family' and 'families' as those terms are 
used in this section." 
HOUSING FOR THE HANDICAPPED 
SEC 203. (a) (1) The heading of title I I of the Housing Act of 1959 
is amended by striking out "HOUSING FOR T H E ELDERLY" 
and inserting m lieu thereof "HOUSING FOR T H E ELDERLY OR 
HANDICAPPED". 
(2) Section 202 of such Act is amended— 
(A) by striking out "elderly families and elderly persons" 
wherever it appears in subsections (a)(1), (a)(2), and (e) and 
inserting in lieu thereof in each instance "elderly or handicapped 
families"; 
(B) by amending subsection (d) (1) to read as follows: 
" (1) The term 'housing' means structures suitable for dwelling 
"Housing." 
use by elderly or handicapped families which are (A) new struc-
784 
PUBLIC L
A
W 88-560-SEPT. 2, 1964 
[78 STAT. 
tures, or (B) pi-oxided by reliabilitation, alteration, conversion, 
or improvement of existing structures which are otherwise in-
adequate for- proposed dw^elling use by such families."; 
hand/ifa'^^ed"^ 
(C) by Striking out the first sentence of subsection (d) (4) and 
frmiiie^s^"^ 
inserting in lieu thereof the following: "The term 'elderly or 
handicapped families" means families which consist of two or more 
persons and the head of which (or his spouse) is sixty-two years 
of age or over or is handicapped, and such term also means a single 
person who is sixty-two years of age or over or is handicapped. 
A person shall be considered handicapped if such person is deter-
mined, pursuant to regulations issued by the Administrator, to 
have a physical impairment which (A) is expected to be of long-
continued and indefinite duration, (B) substantially impedes his 
ability to live independently, and (C) is of such a nature that such 
ability could be improved by more suitable housing conditions."; 
(D) by inserting before the period at the end of subsection 
(d)(7) the following: "or rehabilitation, alteration, conversion, 
or improvement of existing structures"; and 
(E) by amending subsection (d) (8) to read as follows: 
tie's^*'^^*^'^ ^^""' 
"(^) '^^^ ^^^^ 'related facilities' means (A) new structures 
suitable for use by elderly or handicapped families as cafeterias 
or dining halls, community rooms or buildings, workshops, or 
infirmaries or other inpatient or outpatient health facilities, or 
other essential service facilities, and (B) structures suitable for 
the above uses provided by rehabilitation, alteration, conversion, 
or improvement of existing structures which are otherwise 
inadequate for such uses." 
(b) The last sentence of section 221(f) of the National Housing 
Act (as added by section 202 of this Act) is amended by striking out 
"person sixty-two years of age or over" and inserting in lieu thereof 
"person who is sixty-two years of age or over, or who is a handi-
capped person within the meaning of section 202 of the Housing Act 
u use f'o'i. 
"f 1^^^'"-
73 Stat. 665. 
(c) Section 231 of such Act is amended by adding at the end 
1
2 use i7i5v. 
thereof the following new subsection: 
"(f) Notwithstanding any of the provisions of this section, the 
housing provided under this section may include family units which 
are specially designed for the use and occupancy of any person or 
family qualifying as a handicapped family as defined in section 202 
of the Housing Act of 1959, and such special facilities as the Commis-
sioner deems adequate to serve handicapped families (as so defined). 
The Commissioner may also prescribe procedures to secure to such 
families preference or priority of opportunity to rent the living units 
specially designed for their use and occupancy." 
(d) The second sentence of section 2(2) of the United States 
Post, p. 794. 
piousing Act of 1937 (as amended by section 401(a) of this Act) is 
amended by inserting after "and includes" the following: "a single 
person who is handicapped within the meaning of section 202 of the 
Housing Act of 1959 or who is". 
42 us^c M36 
(®) Section 207 of the Housing Act of 1961 (as amended by sec-
tion 407 of this Act) is further'amended by inserting before the 
l)eriod at the end of the first sentence the following: "and of demon-
strating the types of housing and the means of providing housing 
that will assist low income persons or families who qualify as handi-
capped families as defined in section 202 of the Housing Act of 1959". 
Ante, p. 783. 
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1%4 
785 
TITLE III—UEBAN RENEWAL 
CODE ENFORCEMENT 
SEC. 301. (a) Section 101(c) of the Housing Act of 1949 is 
es stat. 623. 
amended by striking out the period at the end thereof and inserting 
"
^
^ "^^ ^'*^^' 
in lieu thereof the following: ": Provided further^ That commencing 
three years after the date of enactment of the Housing Act of 1964, 
no workable program shall be certified or re-certified unless (A) the 
locality has had in effect, for at least six months prior to such 
certification or re-certification, a minimum standards housing code, 
related but not limited to health, sanitation, and occupancy require-
ments, which is deemed adequate by the Administrator, and (B) the 
Administrator is satisfied that the locality is carrying out an effective 
program of enforcement to achieve compliance with such housing 
code." 
(b) The first sentence of section 110(c) of such Act is amended by 
^° ^*|^' ^^^r'J-
inserting after "or rehabilitation or conservation in an urban renewal 
area," the following: "or a program of code enforcement in an urban 
renewal area,". 
(c) Paragraph (5) of the second sentence of section 110(c) of such 
Act is amended by (1) striking out "a program of" and inserting in 
lieu thereof "programs of code enforcement or", and (2) adding before 
the semicolon at the end of such paragraph the following:": Provided^ 
That no program of code enforcement shall be included as part of an 
urban renewal project unless the locality shall agree to increase its 
total expenditures with respect to code enforcement, during the period 
such project is under contract for a loan or capital grant, by an amount 
equal to the required local grants-in-aid with respect to the code en-
forcement included as part of such project". 
(d) Any contract for a capital grant under title I of the Housing 
Act of 1949, executed prior to the date of enactment of this Act, may 
42 use HSO-
be amended to incorporate the provisions of subsection (c) for costs ^^^p^gt, p. rss 
incurred on or after such date. 
SELF-HELP PROGRAMS FOR COMMUNITY IMPROVEMENT 
SEC. 302. Section 101 (d) of the Housing Act of 1949 is amended by 
inserting immediately after "local urban renewal programs" the fol-
lowing: "(including rehabilitation projects requiring no additional 
assistance under this title or self-liquidating redevelopment projects)". 
LOAN CONTRACT FOR TWO OR MORE PROJECTS 
SEC. 303. (a) Section 102(a) of the Housing Act of 1949 is amended 
f^ sta^ 4^i4. 
by adding at the end thereof the following: "Notwithstanding any 
other provision of this title, the Administrator may make a temporary 
loan, as described in the first two sentences of this subsection, for two 
or more urban renewal projects being carried out by the same local 
public agency. 
The principal amount of rny such loan which is out-
standing at any one time snail not exceed the estimated expenditures 
to be made by the local public agency for such projects." 
(b) Section 110(g) of such Act is amended by striking out in the 
first sentence thereof the words "for any project". 
CAPITAL GRANT AUTHORIZATION 
' 
SEC. 304. Section 103 (b) of the Housing Act of 1949 is amended by 
^^ sta^ ^
1
^
6
6
. 
striking out "not to exceed $4,000,000,000" and inserting in lieu thereof 
"not to exceed $4,725,000,000". 
786 
PUBLIC LAW 88-560-SEPT. 2, 1964 
[78 STAT. 
RELOCATION OF DISPLACEES FROM URBAN RENEWAL. AREAS 
42ulc uls. 
SEC- ^^^- (^).(l) Section 105(c) of the Housing Act of 1949 is 
amended by striking out "families" wherever it appears and inserting 
in lieu thereof "individuals and families". 
(2) The requirement imposed by the amendments made by para-
graph (1) shall not be applicable to any project receiving Federal 
recognition prior to the date of the enactment of this Act. 
(b) Section 105(c) of such Act is further amended by inserting 
before the period at the end thereof the following: ": Provided^ That 
the Administrator shall issue rules and regulations to aid in imple-
menting the requirements of this subsection and in otherwise achiev-
ing the objectives of this title which shall require that there be estab-
lished, at the earliest practicable time, for each urban renewal project 
involving the displacement of families, individuals, or business con-
cerns occupying property in an urban renewal area, a relocation 
assistance program which shall include such measures, facilities, and 
services as may be necessary or appropriate in order (1) to determine 
the needs of such families, individuals, and business concerns for 
relocation assistance, (2) to provide information and assistance to aid 
in relocation and otherwise minimize the hardships of displacement, 
and (3) to assure the necessary coordination of relocation activities 
with other project activities and other planned or proposed govern-
mental actions in the community which may affect the carrying out 
of the relocation program". 
1
5 u*sc 63?" 
(*^) Section 8(b) of the Small Business Act is amended— 
(1) by striking out "and" at the end of paragraph (12); 
(2) by striking out the period at the end of paragraph (13) 
and inserting in lieu thereof "; and"; and 
(3) by adding after paragraph (13) the following new para-
graph : 
"(14) to provide at the earliest practicable time such informa-
tion and assistance as may be appropriate, including information 
15 use 6
3
^
6
* 
concerning eligibility for loans under section 7(b)(3), to local 
public agencies (as defined in section 110(h) of the Housing Act 
of 1949) and to small-business concerns to be displaced by fed-
erally aided urban renewal projects in order to assist such small-
business concerns in reestablishing their operations." 
DISPOSAL OF LAND FOR LOW- AND MODERATE-INCOME HOUSING 
SEC. 306. Subsections (a) and (b) of section 107 of the Housing 
75^stat^*i68^^' 
"^^^ ^^ ^^^^ ^^^ amended to read as follows: 
42 use i4'57. 
"(a) Upon approval of the Administrator and subject to such con-
ditions as he may determine to be in the public interest, any real prop-
erty held as part of an urban renewal project may be made available 
to (1) a limited dividend corporation, nonprofit corporation or asso-
ciation, cooperative, or public body or agency, or (2) a purchaser 
who would be eligible for a mortgage insured under section 221 (d) (3) 
75s^a^\so^'' 
^^ (d) (4) of the National Housing Act, for purchase at fair value for 
1
2 use 1715Z. 
use by such purchaser in the provision of new or rehabilitated rental 
or cooperative housing for occupancy by families or individuals of 
moderate income. 
"(b) When it appears in the public interest that real property 
acquired as part of an urban renewal project should be used in whole 
or in part for a low-rent housing project assisted under the United 
42 use lllo 
States Housing Act of 1937, or under a State or local program found 
by the Administrator to have the same general purposes as the Federal 
program under such Act, the property shall be made available to the 
68 Stat. 626. 
42 u s e 1460 
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1964 
' 787 
public housing ajrenoy undertaking the low-rent liousing project at 
a price equal to its fair value, as determined in accordance with subsec-
tion (a), and such amount shall be included as part of the development 
cost of such low-rent housing project: Provided, That the local con-
tribution in the form of tax exemption or tax remission required by 
section 10(h) of such Act, or by analogous provisions in legislation 
^s stat. 63ii; 
authorizing such State or local program, with respect to the low-rent 
°/2''usc uio. 
liousing project into which such property was incorporated on or after 
September 23, 1959, shall (if covered by a contract which, in the 
determination of the Public Housing Commissioner, wdll assure that 
such local contribution will be made during the entire period that the 
project is used as low-rent housing within the meaning of such Act, or 
by provisions found by the Administrator to give equivalent assur-
ance in the case of State or local programs) be accepted as a local 
grant-in-aid equal in amount, as determined by the Administrator, to 
one-half (or one-third in the case of an urban renewal project on a 
three-fourths capital grant basis) of the difference between the cost of 
such property (including costs of land, clearance, site improvements, 
and a share, prorated on an area basis, of administrative, interest, and 
other project costs) and its sales price, and shall be considered a local 
grant-in-aid furnished in a form other than cash within the meaning 
of section 110(d) of this Act." 
es stat. 6
2
<
5
. 
42 u s e 1460. 
REHABILITATION 
OF PROPERTY I N 
URBAN RENEWAL 
AREAS 
SEC. 307. Section 110(c) of the Housing Act of 1949 is amended by ^Jl^f^^'' ^°''^' 
adding immediately after and below paragraph (7) the following new 
*^*' ^^^' 
paragraph: 
"Notwithstanding any other provision of this title, no contract shall 
be entered into for any loan or capital grant under this title for any 
project which provides for demolition and removal of buildings and 
improvements unless the Administrator determines that the objectives 
of the urban renewal plan could not be achieved through rehabilitation 
of the project area." 
l'R()JE(TS INVOLVING THE ACQUISITION AND DEVELOPMENT OF AIR 
RIGHTS SITES 
SEC. 308. (a) Section 110(c)(1) of the Housing Act of 1949 is 
amended by— 
(1) inserting a new clause (iv) before the proviso to read as 
follows: ", or (iv) air rights in an area consisting principally 
of land in highways, railway or subway tracks, bridge or tunnel 
entrances, or other similar facilities which have a blighting 
influence on the surrounding area and over which air rights sites 
are to be developed for the elimination of such blighting influ-
ences and for the provision of housing (and related facilities and 
uses) designed specifically for, and limited to, families and 
individuals of low or moderate income"; 
(2) striking out in the proviso "an open land project" and 
inserting in lieu thereof "projects under clauses (iii) and (iv) 
hereof"; and 
(3) adding before the semicolon at the end thereof the follow-
ing: ": Provided further, That the aggregate amount of capital 
grants for projects under clause (iv) shall not exceed 5 per 
centum of the aggregate amount of grants authorized by this 
title to be contracted for after the date of enactment of the 
Housing Act of 1964". 
788 
PUBLIC LAW 88-560-SEPT. 2, 1964 
[78 STAT. 
yslt^t^'iel^.^'^'' 
(^) Section 110(c) of such Act is further amended by— 
42 use 1460. 
(1) striking out "and" at the end of paragraph (6), and 
redesignating paragraph (7) as paragraph (8); 
(2) inserting after paragraph (6) a new paragraph as follows: 
"(7) construction of foundations and platforms necessary for 
the provision on air rights sites of housing (and related facilities 
and uses) designed specifically for, and limited to, families and 
individuals of low or moderate income; and"; and 
(3) striking out "paragraph (7)" in the third sentence (as 
numbered prior to the amendments made by this Act) and insert-
ing in lieu thereof "paragraphs (7) and (8)". 
(c) Section 110(d) of such Act is amended by striking out "proj-
ect)" 
and inserting in lieu thereof "project, or of air rights over 
streets, alleys, and other public rights-of-way)". 
(d) Section 110(e) of such Act is amended by striking out "and 
(7)" in clause (i) and inserting in lieu thereof "{7), and (8)". 
68 
Stat. 626. 
42 
use 1450-
1464. 
AMENDMENT OF D E r i N I T l O N OF " G O I N G FEDERAL R A T E " 
SEC. 309. Section 110(g) of the Housing Act of 1949 is amended by 
striking out the last sentence and inserting in lieu thereof the follow-
ing : "Anv contract for a loan or advance, authorized by the Admin-
istrator alter the date of enactment of the Housing Act of 1964, shall 
provide for a single interest rate which shall be applicable also to 
future amendments of the contract which provide additional funds 
thereunder, and shall further provide for a periodic revision of the 
interest rate on the balance outstanding or to be outstanding on such 
loan or advance based on the going Federal rate on the date of such 
revision: Provided, That any contract for a loan or advance author-
ized prior to the date of enactment of the Housing Act of 1964 shall 
be amended (with the first amendment to such contract authorized 
after the date of enactment of such Act) to provide for such a single 
interest rate (based on the going Federal rate at the time such amend-
ment is authorized) and for periodic revision thereof." 
RELOCATION PAYMENTS TO DISPLACED PERSONS AND BUSINESSES 
SEC. 310. (a) Title I of the Housing Act of 1949 is amended by add-
ing at the end thereof the following new section: 
(( 
RELOCATION 
"SEC. 114. (a) Notwithstanding any other provision of this title, an 
urban renewal project may include the making of j)ayments as pre-
scribed in this section to displaced individuals, families, business con-
cerns, and nonprofit organizations; and any contract for financial 
assistance under this title shall provide that the capital grant other-
wise payable for the project shall be increased by an amount equal to 
such payments and that no part of the amount oi such payments shall 
be required to be contributed as part of the local grant-in-aid. As used 
in this section, 'displaced' refers to displacement from an urban re-
newal area made necessary by (1) the acquisition of real property by 
a local public agency or by any other public body, (2) code enforce-
ment activities undertaken in connection with an urban renewal proj-
ect, or (3) a program of voluntary rehabilitation of buildings or other 
improvements in accordance with an urban renewal plan. 
"(b) A local public agency may pay to any displaced business con-
cern or nonprofit organization— 
"(1) its reasonable and necessary moving expenses and any 
actual direct losses of property except goodwill or profit (which 
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1964 
789 
are incurred on and after August 7, 1956, and for which reim-
bursement or compensation is not otherwise made): Provided^ 
That such payment shall not exceed $3,000 (or, if greater, the 
total certified actual moving expenses); and 
" (2) an additional $1,500 in the case of a private business con-
cern with average annual net earnings of less than $10,000 per 
year which (A) was doing business in a location in the urban 
renewal area on the date of local approval of the urban renewal 
plan (or of acquisition of real property under the third sentence 
of section 102(a)), (B) is displaced on or after January 27, 
1964, and (C) is not part of an enterprise having establishments 
outside the urban renewal area. 
Notwithstanding the provisions of clause (1) of the preceding sen-
tence, a business concern which is not being displaced from an urban 
renewal area shall be eligible for payments under such clause (1) of 
its certified actual moving expenses with respect to its outdoor adver-
tising displays being removed from the urban renewal area in the 
same manner as though such business concern were being displaced. 
" (c) (1) A local public agency may pay to any displaced individual 
or family his or its reasonable and necessary moving expenses and 
any actual direct losses of property (which are incurred on and after 
August 7, 1956, and for which reimbursement or compensation is not 
otherwise made): Provided^ That such payment shall not exceed 
$200: And provided further, That the Administrator may authorize 
payment to individuals and families of fixed amounts (not to exceed 
$200 in any case) in lieu of their respective reasonable and necessary 
moving expenses and actual direct losses of property. 
"(2) A local public agency may pay (in addition to any amount 
under paragraph (1)), on behalf of any displaced family or any dis-
placed individual sixty-two years of age or over, during the first five 
months after displacement, a relocation adjustment payment, not to 
exceed $500, to assist such displaced individual or family to acquire 
a decent, safe, and sanitary dwelling. 
The relocation adjustment pay-
ment shall be an amount which, when added to 20 per centum of the 
annual income of the displaced individual or family at the time of dis-
placement, equals the average rental required, for a 12-month period, 
for such a decent, safe, and sanitary dwelling of modest standards ade-
quate in size to accommodate the displaced individual or family (in the 
urban renewal area or in other areas not generally less desirable in 
regard to public utilities and public and commercial facilities) : Pro-
vided, That such payment shall be made only to an individual or family 
who is unable to secure a dwelling unit in a low-rent housing project 
assisted under the United States Housing Act of 1937, or under a State 
f2 f^l^^' f^b. 
or local program found by the Administrator to have the same general 
purposes as the Federal program under such Act: Provided 
further, 
That payments under this paragraph shall be available only in the case 
of families, and individuals sixty-two years of age or over, displaced 
on or after January 27, 1964. 
"(d) The Administrator is authorized to establish such rules and 
regulations as he may deem appropriate in carrying out the provisions 
of this section and may provide in any contract with a local public 
agency, or in regulations promulgated by the Administrator, that 
determinations of any duly designated officer or agency as to eligibility 
for and the amount of relocation assistance authorized by this section 
shall be final and conclusive for any purposes and not subject to rede-
termination by any court or any other officer. Such regulations shall 
include provisions to assure that relocation payments, as authorized 
by this section, sliall be made as promptly as possible to all families, 
individuals, business concerns, and nonprofit organizations found to be 
42 u s e 1430. 
42 u s e 1450. 
1464. 
68 Stat. 626. 
42 u s e 1460. 
790 
PUBLIC LAW 88-560-SEPT. 2, 1964 
[78 STAT. 
eligible fov sucli payments by reason of their having been displaced 
from propei-ty in the urban renewal area, without regard to any subse-
quent proceedings, determinations, or events relating to such property 
which do not bear upon whether such displacement in fact occurred." 
(b) Any contract with a local public agency which was executed 
under title I of the Housing Act of 1949 before the date of the enact-
ment of this Act may be amended to provide for payments authorized 
Ante. p. 788. 
^y scctiou 114 of thc Housing Act of 1949. 
(c) Section 106 of the Housing Act of 1949 is amended by striking 
4
^
2 use Hit 
'>^^t subsection (f). 
ACQUISrriON 
O F 
P R O P E R T Y 
AFFECl^D 
BY 
COAL 
M I N E 
SrBSinKN(^E 
OR 
UNDERGROUND M I N E 
FIRES 
SEC. 811. (a) Section 110(e) of the Housing Act of 1949 is amended 
by adding at the end thereof the following new paragraph: 
"Where a project includes the acquisition of property which has been 
damaged because of the collapse or subsidence of underlying coal 
mines, or underground mine fires, and the property is to be acquired 
from an individual, family, business concern, or nonprofit organiza-
tion which was the owner of such property at the time the damage 
first occurred, the amount otherwise allowable as the acquisition price 
of such property may be increased by an amount equal to so much 
of any diminution in the value of such property as is determined to be 
reasonably attributable to such damage and to represent an otherwise 
micompensated and (but for such acquisition) uncompensable loss 
actually sustained by such owner." 
(b) Any contract under title I of the Housing Act of 1949 executed 
prior to the date of enactment of the Housing Act of 1964 may be 
amended to provide for payment of the increased amounts authorized 
under the amendment made by subsection (a) with respect to any 
uncompleted project if the project includes acquisitions which, under 
any State or local law in effect on such date, would involve expendi-
tures by a local public agency that could not otherwise be included in 
the costs of such project. 
R E H ABU .IT 
A TI ON U) 
A N S 
SEC. 312. (a) To assist rehabilitation in an urban renewal area and 
thereby reduce the need for demolition and removal of structures, the 
Housing and Home Finance Administrator is hereby authorized, 
through the utilization of local public and private agencies where 
feasible, to make loans as herein provided to the owners or tenants of 
property in such area to finance rehabilitation required to make the 
[jroperty conform to applicable code requirements or to carry out the 
objectives of the urban renewal plan for the area. 
No loan shall be 
made under this section unless the Administrator finds (1) that the 
applicant is unable to secure the necessary funds from other sources 
upon reasonable terms and conditions, and (2) the loan is an accept-
able risk taking into consideration the need for the rehabilitation, the 
security available for the loan, and the ability of the applicant to repay 
the loan. 
Definitions. 
^|^^ -pov the purposes of this section— 
(1) the term "rehabilitation" means the improvement or re-
pair of a structure or facilities in connection with a structure, and 
may include the provision of such sanitary or other facilities as 
are required by applicable codes or the urban renewal plan to be 
provided by the owner or tenant of the property; 
75 Stat, 154. 
12 use 171.5k. 
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1964 
791 
(2) the term "urban renewal area" means a slum area or a 
blighted, deteriorated, or deteriorating area as defined in section 
110(a) of the Housing Act of 1949; 
$2 us^c i^ecJ 
(3) the term "tenant" means a person or organization who is 
occupying a structure under a lease having a period to run at the 
time a rehabilitation loan is made under this section of not less 
than the term of the loan; and 
(4) the term "Administrator" means the Housing and Home 
Finance Administrator. 
(c) A rehabilitation loan made under this section shall be subject to 
the following limitations: 
(1) The loan shall be subject to such terms and conditions as may be 
prescribed by the Administrator. 
(2) The term of the loan may not exceed twenty years or three-
fourths of the remaining economic life of the structure after rehabilita-
tion, whichever is less. 
(3) The loan shall bear interest at such rate as the Administrator 
determines to be appropriate but not to exceed 3 per centum per annum 
of the amount of the principal outstanding at any time, and the Admin-
istrator may prescribe such other charges as he finds necessary, includ-
ing service charges and appraisal, inspection, and other fees. 
(4) The amount of the loan may not exceed— 
(A) in the case of residential property, the amount of a loan 
which could be insured by the Federal Housing Commissioner 
under section 220(h) of the National Housing Kct: Provided^ 
That, within the limitations otherwise applicable on the amount 
of a loan under such section, the loan may exceed the cost of 
rehabilitation in order to include an amount approved by the 
Administrator to refinance existing indebtedness secui-ed by such 
property if such refinancing is necessary to enable the applicant 
to amortize, with a monthly payment of not more than 20 per 
centum of his average monthly income, such loan and any other 
indebtedness secured by his property; and 
(B) in the case of nonresidential property, whichever of the fol-
lowing is the least: $50,000, or the cost of rehabilitation, or an 
amount which when added to any outstanding indebtedness related 
to the property securing the loan creates a total outstanding 
indebtedness that the Administrator determines could be reason-
ably secured by a first mortgage on the property. 
(5) A loan shall be secured as determined by the Administrator. 
(d) There is authorized to be appropriated not to exceed $50,000,000 
which shall constitute a revolving fund to be used by the Administrator 
in carrying out this section. 
(e) In the performance of, and with respect to, the functions, 
powers, and duties vested in him by this section, the Administrator 
shall have (in addition to any authority otherwise vested in him) the 
functions, powers, and duties set forth in section 402 of the Housing 
Act of 1950 (except subsection (c) (2)). 
(f) The Administrator is authorized to delegate to or use as his 
agent any Federal or local public or private agency or organization to 
the extent he determines appropriate and desirable to carry out the 
objectives of this section in the area involved. 
(g) The Administrator is authorized to issue such rules and regula-
tions and impose such requirements and conditions (in addition to 
those specified in this section) as he determines to be desirable to carry 
out the objectives of this section, including limitations on the amount 
of a loan and restrictions on the use of the property involved. 
31-667 0-65—53 
64 Stat. 78. 
12 use 1749a. 
31 u s e 529. 
792 
PUBLIC LAW 88-560-SEPT. 2, 1964 
[78 STAT. 
URBAN RENEWAL DEMONSTRATION PROGRAM 
42 use f452a. 
^Ec. 313. Sectioii 314 of the Housing Act of 1954 is amended— 
(1) by inserting " ( a ) " after "314." at the beginning of the 
section; 
(2) by inserting before the period at the end of the second 
sentence the following: ", but such a grant may in addition cover 
the full cost of writing and publishing the reports on such activi-
ties and undertakings"; 
(3) by inserting "activities and" before "undertakings" in the 
third sentence; 
(4) by striking out the fourth and fifth sentences; and 
(5) by adding at the end thereof the following new subsections: 
"(b) The Administrator is further authorized to pay for the cost 
of (1) writing and publishing reports on activities and undertakings 
financed by grants made under this section, as well as reports on simi-
lar activities and undertakings, not so financed, which are of signifi-
cant value in furthering the purposes of this section, and (2) writing 
and publishing summaries and other informational material on such 
reports. 
"(c) The aggregate amount of grants made under subsection (a), 
and other costs incurred pursuant to subsection (b), shall not exceed 
$10,000,000 and shall be payable from the grant funds provided under 
42"usc'i?53'. 
^^^ authorized by section 103(b) of the Housing Act of 1949. The 
Administrator may make advance or progress payments on account of 
any contract entered into pursuant to this section, notwithstanding the 
provisions of section 3648 of the Revised Statutes, as amended." 
URBAN AND REGIONAL PLANNING GRANTS 
lo use 46 u 
^^^: ^.^^- (^) Section 701 (a) of the Housing Act of 1954 is amended 
by striking out "resulting from rapid urbanization" in clause (B) of 
paragraph (1). 
(b) Section 701(a) of such Act is further amended by— 
(1) striking out "and" at the end of paragraph (4) ; 
(2) striking out the period at the end of paragraph (5) and 
inserting in lieu thereof a semicolon; and 
(3) adding two new paragraphs after paragraph (5) as 
follows: 
"(6) metropolitan and regional planning agencies, with the 
approval of the State planning agency or (in States where no such 
planning agency exists) of the Governor of the State, for the pro-
vision of planning assistance within the metropolitan area or 
region to cities, other municipalities, counties, groups of adjacent 
communities, or Indian reservations described in clauses (A), 
(B), (C), and (D) of paragraph (1) of this subsection; 
"(7) to official governmental planning agencies for any area 
where there has occurred a substantial reduction in employment 
opportunities as the result of (A) the closing (in whole or in 
part) of a Federal installation, or (B) a decline in the volume of 
Government orders for the procurement of articles or materials 
produced or manufactured in such area; and". 
(c) Section 701(a) of such Act is further amended by striking out 
" (a)" after "section 5" in paragraph(3). 
(d) Section 701 (b) of such Act is amended by striking out the pro-
viso in the first sentence and inserting in lieu thereof ": 
Provided, 
That such a grant may be in an amount not exceeding three-fourths 
of such estimated cost to an official governmental planning agency for 
an area described in subsection (a) (7), or for planning being carried 
out for a city, other municipality, county, group of adjacent communi-
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1964 
793 
ties, or Indian reservation in an area designated by the Secretary of 
Commerce as a redevelopment area under section 5 of the Area Rede-
velopmentAct". 
^2 use 2^34. 
PLANNING GRANTS FOR INDIAN 
RESERVATIONS 
SEC. 315. (a) Section 701 (a) of the Housing Act of 1954 is amended 
^ l'^^ ^f-
by— 
(1) striking out "and" at the end of clause (B) of paragraph 
(1)5 
. 
. 
(2) inserting ", and (D) Indian reservations" before the semi-
colon at the end of paragraph (1); and 
(3) inserting a new paragraph after paragraph (7) (added by 
section 314 (b)) as follows: 
"(8) tribal planning councils or other tribal bodies designated 
by the Secretary of the Interior for planning for an Indian reser-
vation to which no State planning agency or other agency or 
instrumentality is empowered to provide planning assistance under 
clause (D) of paragraph (1) above." 
(b) Section 701 (d) of such Act is amended by— 
(1) striking out "and urban regions" in the first sentence and 
inserting in lieu thereof "urban regions, and Indian reservations"; 
and 
(2) inserting after "instrumentalities" in the second sentence 
the following: ", and to Indian tribal bodies,". 
ELIGIBILITY OF COUNTIES FOR PLANNING 
ASSISTANCE 
SEC. 316. Section 701(a) of the Housing Act of 1954 is amended by 
striking out clause (A) of paragraph (1) and inserting in lieu thereof 
the following: "(A) cities and other municipalities having a popula-
tion of less than 50,000 according to the latest decennial census, and 
counties without regard to population: Provided, That grants shall be 
made under this paragraph for planning assistance to counties having 
a population of 50,000 or more, according to the latest decennial census, 
which are within metropolitan areas, only if (i) the Administrator 
finds that planning and plans for such county will be coordinated with 
the program of comprehensive planning, if any, which is being carried 
out for the metropolitan area of which the county is a part, and (ii) 
the aggregate amount of the grants made subject to this proviso does 
not exceed 15 per centum of the aggregate amount appropriated, after 
the date of enactment of the Housing Act of 1964, for the purposes of 
this section,". 
PLANNING 
GRANT 
AUTHORIZATION 
SEC 317. Section 701 (h) of the Housing Act of 1954 is amended by 
striking out "$75,000,000" in the last sentence and inserting in lieu 
thereof"$105,000,000". 
PLANNING 
PROBLEMS RESUI.TING FROM CHAMIZAL 
TREATY 
OF 
1 9 6 3 
S E C 318. Notwithstanding the provisions of section 701 of the Hous-
ing Act of 1954 with respect to the eligibility of a city for a grant 
thereunder, the Housing and Home Finance Administrator is author-
ized to make planning grants to the city of El Paso, Texas, for the pur-
pose of assisting it to solve those urban planning problems that have 
resulted or are expected to result from the Chamizal Treaty of 1963 
between the United States of America and the Republic of Mexico. 
Any such grants shall be subject to all other conditions and require-
ments contained in such section 701. 
794 
PUBUC LAW 88-560-SEPT. 2, 1964 
[78 STAT. 
SMALL BUSINESS ADMINISTRATION 
LOANS 
Is use 63?" 
^ ^ - ^^^' Section 7(b) (3) of the Small Business Act is amended by 
inserting before the period at the end thereof the following: "; and 
the purposes of a loan made pursuant to this paragraph may, in the 
discretion of the Administrator, include the purchase or construction 
of other premises whether or not the borrower owned the premises 
from which it was displaced". 
TITLE IV—HOUSING FOR LOW-INCOME FAMILIES 
ELIGIBILITY OF DISPLACED 
INDIVIDUALS 
SEC. 401. (a) Section 2(2) of the United States Housing Act of 
Anu ^p!*78T' 
^^^'^ ^^ amended to read as follows: 
'42'use 1402. 
"(2) The term 'families of low income' means families (including 
elderly and displaced families) who are in the lowest income group 
and who cannot afford to pay enough to cause private enterprise in 
their locality or metropolitan area to build an adequate supply of 
decent, safe, and sanitary dwellings for their use. The term 'families' 
includes families consisting of a single person in the case of elderly 
families and displaced families, and includes the remaining member 
of a tenant family. 
The term 'elderly families' means families whose 
heads (or their spouses), or whose sole members, have attained the age 
at which an individual may elect to receive an old age benefit under title 
42 use 401-425. J 
J ^f ^]^g Social Security Act, or who are under a disability as defined 
42 use 4
2
3
^
* 
^^ section 223 of that Act. 
The term 'displaced families' means fami-
lies displaced by urban renewal or other governmental action." 
^5 us^c ^4^ 
(^^ Section 10(g) (2) of such Act is amended by— 
(1) striking out "those displaced by urban renewal or other 
governmental action" and inserting in lieu thereof "displaced 
families"; and 
(2) striking out "; and" at the end thereof and inserting in lieu 
thereof the following: ": Pr(/vided, That in establishing such ad-
mission policies the public housing agency shall accord to fami-
lies of low income such priority over single persons as it deter-
mines to be necessary to avoid undue hardship; and". 
ys^tat^^iet^^' 
(^^ Section 15(7) (b) of such Act is amended by striking out 
42 use 1415. 
"family displaced by urban renewal or other governmental action" and 
inserting in lieu thereof "displaced family". 
ADDITIONAL SUBSIDY FOR URBAN RENEWAL AND LOW-RENT HOUSING 
DISPLACEES 
SEC. 402. The first proviso in section 10(a) of the United States 
Housing Act of 1937 is amended to read as follows: ": Provided, That 
the Authority may, in addition to the payments guaranteed under the 
contract, pay not to exceed $120 per annum per dwelling unit occu-
S
ied by an elderly family, or a displaced family if such family was 
isplaced by an urban renewal or low-rent housing project on or after 
January 27, 1964, on the last day of the project fiscal year where such 
amount, in the determination of the Authority, was necessary to enable 
the public housing agency to lease the dwelling unit to an elderly or 
displaced family at a rental it could afford and to operat© the project 
on a solvent basis, and, in the case of displaced families, if and to the 
extent that the average or estimated average rental for units so occu-
pied by such families was less than the rental which the Authority 
determines, on the basis of the average or estimated average project 
rentals, would have been established m leasing the units to families 
which were neither elderly nor similarly displaced". 
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1964 
795 
INCREASE IN AUTHORIZATION FOR ANNUAL CONTRIBUTIONS 
SEC. 403. Section 10(e) of the United States Housing Act of 1937 
75 stat. ^les^ 
is amended by striking out "$336,000,000" and inserting in lieu thereof 
"$366,250,000". 
PAYMENTS IN LIEU OF TAXES BY LOCAL HOUSING AUTHORITIES; LOCAL 
CONTRIBUTIONS 
SEC. 404. Section 10(h) of the United States Housing Act of 1937 
^s stat. eai. 
is amended by striking out all that follows the first colon and inserting 
in lieu thereof the following: '•''Provided^ That, with respect to any such 
project which is not exempt from all real and personal property taxes 
levied or imposed by the State, city, county, or other political subdi-
visions, such contract shall provide, in lieu of the requirement for tax 
exemption and payments in lieu of taxes, that no annual contributions 
by the Authority shall be made available for such project unless and 
until the State, city, county, or other political subdivisions in which 
such project is situated shall contribute, in the form of cash or tax 
remission, the amount by which the taxes paid with respect to the 
project exceed 10 per centum of the annual shelter rents charged in 
such project: Provided further^ That, prior to execution of the con-
tract for annual contributions the public housing agency shall, in the 
case of a tax-exempt project, notify the governing body of the locality 
of its estimate of the annual amount of such payments in lieu of taxes 
and of the amount of taxes which would be levied if the property were 
privately owned, or, in the case where the project is taxed, its estimate 
of the annual amount of the local cash contribution, and shall there-
after include the actual amounts of such payments or contributions in 
its annual report. 
Contracts for annual contributions entered into 
prior to the effective date of the Housing Act of 1964 may be amended 
-
in accordance with the first sentence of this subsection." 
RELOCATION 
OF 
F A M I L I E S AND INDIVIDUALS DISPLACED FROM PROJECT 
SITES 
S E C 405. (a) Section 15(7) (b) of the United States Housing Act 
42 u s e 1415. 
of 1937 is amended by striking out "and" before "(ii)", and by 
63 stat. 422 
inserting before the period at the end thereof the following: "; and 
(iii) unless the public housing agency has demonstrated to the 
satisfaction of the Authority that there is a feasible method for the 
temporary relocation of the individuals and families displaced from 
the project site, and that there are or are being provided, in the 
project area or in other areas not generally less desirable in regard to 
public utilities and public and commercial facilities and at rents or 
prices within the financial means of such individuals and families, 
decent, safe, and sanitary dwellings equal in number to the number 
of and available to such individuals and families and reasonably 
accessible to their places of employment". 
(b) The amendments made by subsection (a) shall not be appli-
cable to any project for which an application for preliminary loan 
has been approved by the local governing body prior to the date of 
the enactment of this Act. 
RELOCATION PAYMENTS 
SEC. 406. Section 15 of the United States Housing Act of 1937 is 
75 stat. i64. 
amended by adding at the end thereof the following new paragraph: 
"(8) The Authority may authorize the cost of relocation payments 
made by public housing agencies to be included with the development 
796 
PUBUC LAW 88-560-SEPT. 2, 1964 
[78 STAT. 
or acquisition cost of any project for purposes of determining the 
amount of loans and annual contributions authorized to be made 
with respect to such project under sections 9 and 10, but such costs 
shall be separately stated as relocation costs. For purposes of this 
paragraph, a 'relocation payment' is a payment (i) which is made 
to an individual, family, business concern, or nonprofit organization 
displaced on or after January 27, 1964, from a low-rent housing 
E
roject site as a result of the acquisition of real property by a public 
ousing agency, (ii) which is not otherwise authorized under anj 
Federal law, and (iii) which is made only on such terms and condi-
tions, and subject to such limitations, as are authorized (as of the 
time such payment is approved) under section 114 (b) or (c) of 
the Housing Act of 1949 for relocation payments made to individuals, 
families, business concerns, or nonprofit organizations, as the case 
may be." 
Ante, pp. 788, 
789. 
LOW-INCOME HOUSING DEMONSTRATION PROGRAM AUTHORIZATION 
I9 f,tr !!h 
^^^' ^^'^^ Section 207 of the Housing Act of 1961 is amended by 
striking out "$5,000,000" and inserting in lieu thereof "$10,000,000". 
TITLE V—EURAL HOUSING 
EXTENSION o r RURAL HOUSING PROGRAMS 
SEC. 501. (a) The second sentence of section 511 of the Housing 
7
6 ltat^**672 ^' 
^^^ ^^ ^^^^ ^^ amended by— 
42 use 1481. 
(1) striking out "June 30, 1965" and inserting in lieu thereof 
"September 30,1965"; and 
(2) striking out "$700,000,000" and inserting in lieu thereof 
"$850,000,000". 
75 Stat. 186. 
^]^j^ Section 512 of such Act is amended by striking out "June 30, 
1965" and inserting in lieu thereof "September 30,1965". 
(c) Section 513 of such Act is amended by striking out "June 30, 
1965", each place it appears, and inserting in lieu thereof "September 
30,1965". 
(d) Section 515 (b) of such Act is amended by— 
(1) striking out "$100,000" in clause (1) and inserting in lieu 
thereof "$300,000"; and 
(2) striking out "1964" in clause (5) and inserting in lieu 
thereof "1965". 
DEFINITION o r DOMESTIC FARM LABOR 
I2 ulc uli 
SEC. 502. Section 514(f) (3) of the Housing Act of 1949 is amended 
to read as follows: 
" (3) the term 'domestic farm labor' means persons who receive 
a substantial portion (as determined b^ the Secretary) of their 
income as laborers on farms situated in the United States and 
either (A) are citizens of the United States or (B) reside in the 
United States after being legally admitted for permanent resi-
dence therein." 
L O W - R E N T HOUSING FOR DOMESTIC FARM LABOR 
76"tat.^*67l!^' 
SEC. 503. (a) Title V of the Housing Act of 1949 is amended by 
42 use 1471- 
adding at the end thereof the following new section: 
1485. 
76 Stat. 671. 
42 u s e 1485. 
75 Stat. 186. 
42 u s e 1484. 
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1964 
797 
" F I N A N C I A L ASSISTANCE TO PROVIDE LOW-RENT HOUSING FOR DOMESTIC 
FARM LABOR 
"SEC. 516. (a) Upon the application of any State or political subdi-
vision thereof, or any public or private nonprofit organization, the 
Secretary is authorized to provide financial assistance for the pro-
vision of low-rent housing and related facilities for domestic farm 
labor, if he finds that— 
"(1) the housing and related facilities for which 
financial 
assistance is requested will fulfill a pressing need in the area in 
which such housing and facilities will be located, and there is 
reasonable doubt that the same can be provided without financial 
assistance under this section; 
"(2) the applicant will contribute, from its own resources or 
from funds borrowed under section 514 or elsewhere, at least 
one-third of the total development cost; 
"(3) the types of housing and related facilities to be provided 
are most practical, giving due consideration to the purposes to be 
served thereby and the needs of the occupants thereof; and 
"(4) the construction will be undertaken in an economical 
manner, and the housing and related facilities will not be of 
elaborate or extravagant design or material. 
"(b) The amount of any financial assistance provided under this 
section for low-rent housing and related facilities shall not exceed 
two-thirds of the total development cost thereof, as determined by the 
Secretary, less such amount as the Secretary determines can be prac-
ticably obtained from other sources (including a loan under section 
514). 
"(c) No financial assistance for low-rent housing and related facili-
ties shall be made available under this section unless, to any extent 
and for any periods required by the Secretary, the applicant agrees— 
"(1) that the rentals charged domestic farm labor shall not 
exceed such amounts as may be approved by the Secretary, giving 
due consideration to the income and earning capacity of the 
tenants, and the necessary costs of operating and maintaining such 
housing; 
" (2) that such housing shall be maintained at all times in a safe 
and sanitary condition in accordance with such standards as may 
be prescribed by State or local law, or, in the absence of such 
standards, in accordance with such minimum requirements as the 
Secretary shall prescribe; and 
"(3) an absolute priority will be given at all times in granting 
occupancy of such housing and facilities to domestic farm labor. 
"(d) The Secretary may make payments pursuant to any contract 
for financial assistance under this section at such times and in such 
manner as may be specified in the contract. 
In each contract, the 
Secretary shall include such covenants, conditions, or provisions as he 
deems necessary to insure that the housing and related facilities, for 
which financial assistance is made available, be used only in conformity 
with the provisions of this section. 
"(e) The Secretary shall prescribe regulations to insure that Federal 
funds expended under this section are not wasted or dissipated. 
"(f) All laborers and mechanics employed by contractors or sub-
contractors on projects assisted by the Secretary which are undertaken 
by approved applicants under this section shall be paid wages at rates 
not less than those prevailing on similar construction in the locality, 
as determined by the Secretary of Labor in accordance with the Davis-
Bacon Act, as amended (40 U.S.C. 276a—276a-5). The Secretary shall ^^^^ f 
^p^^-^ij^ ^ ^' 
not extend any financial assistance under this section for any project 
798 
PUBLIC LAW 88-560-SEPT. 2, 1964 
[78 STAT. 
without first obtaining adequate assurance that these labor standards 
will be maintained on the construction work; except that compliance 
with such standards may be waived by the Secretary in cases or classes 
of cases where laborers or mechanics, not otherwise employed at any 
time on the project, voluntarily donate their services without compensa-
tion for the purpose of lowering the costs of construction and the 
Secretary determines that any amounts thereby saved are fully cred-
ited to the person, corporation, association, organization, or other 
entity undertaking the project. 
The Secretary of Labor shall have, 
with respect to the labor standards specified in this section, the author-
ity and functions set forth in Reorganization Plan Numbered 14 of 
1950 (15 F.E. 3176; 64 Stat. 1267; 5 U.S.C. 133z-15), and section 2 of 
63 Stat. 108. 
the ^ct of Juue 13,1934, as amended (40 U.S.C. 276c). 
"(g) As used in this section— 
"(1) the term 'low-rent housing' means rental housing within 
the financial reach of families of low income consisting of (A) 
new structures suitable for dwelling use by domestic farm labor, 
and (B) existing structures which can be made suitable for dwell-
ing use by domestic farm labor by rehabilitation, alteration, con-
version, or improvement; 
"(2) the terms 'related facilities' and 'domestic farm labor' 
Ante, p. 796. 
sliall have the meaning assigned to them in section 514(f); and 
"(3) the term 'development cost' shall have the meaning 
Itv'icuis 
assigned to it in section 515 (d)(4)." 
42 use 1483! 
(b) Section 513 of such Act is amended by redesignating clauses 
"(c)" and " ( d ) " as clauses " ( d ) " and "(e)" respectively, and by insert-
ing after the semicolon at the end of clause (b) the following: " ( c ) " 
not to exceed $10,000,000 for financial assistance pursuant to section 
516 for the period ending September 30,1965;". 
42 use 1476. 
(^Q^ Section 506(a) of such Act is amended by striking out "sections 
514 and 515", each place it appears, and inserting in lieu thereof 
"sections 514-516". 
TITLE VI—COMMUNITY FACILITIES 
PUBLIC 
FACILITY 
LOANS 
I2USCH92. 
SEC. 601. (a) Section 202(a) of the Housing Amendments of 1955 
is amended by striking out in clause (1) of the first sentence "instru-
mentalities of States" and inserting in lieu thereof "instrumentalities 
of one or more States", and by striking out "in the same State" and 
inserting in lieu thereof "of one or more States". 
(b) Section 202 (b) (4) of such Amendments is amended by— 
(1) striking out "the second sentence of section 5(a) of the 
Area Redevelopment Act" and inserting in lieu thereof "section 
42 use 2
5
^
0
4 
^ °^ ^^^ Area Redevelopment Act"; and 
(2) inserting " ( A ) " before "to any municipality" in the first 
sentence, and oy striking out everything following the phrase 
"most recent decennial census, or" in that sentence and inserting 
in lieu thereof the following: "; (B) to any public agency or 
instrumentality serving one or more municipalities, political sub 
divisions, or unincorporated areas in one or more States, unless 
each municipality, political subdivision, or unincorporated area 
to be served by the specific public work or facility for which assist-
ance is sought under this section has a population less than the 
applicable figure under clause (A) according to such census." 
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1964 
799 
ADVANCES FOR PUBLIC WORKS PLANNING 
SEC. 602. (a) Section 702(e) of the Housing Act of 1954 is amended 
f^ ^^f- 64i. 
, 
, \i-' 
^ ' 
° 
40 use 452. 
to read as follows: 
"(e) In order to provide moneys for advances in accordance with 
this section, the Administrator is hereby authorized to establish a 
revolving, fund which shall comprise (1) all moneys heretofore or 
hereafter appropriated pursuant to this section, together with all 
repayments and other receipts heretofore or hereafter received in 
connection with advances made under this section, and (2) all repay-
ments and other receipts received after June 30,1964, and all advances 
(and claims in connection with advances) outstanding as of such date, 
under title V of the War Mobilization and Eeconversion Act of 1944 
(58 Stat. 791) and the Act of October 13, 1949 (63 Stat. 841-2). J^^^^^^^^^^-
There are authorized to be appropriated to such revolving fund, in 
40 use'451-
addition to amounts authorized to be appropriated for the purposes of 458. 
this section prior to the date of the enactment of the Housing Act of 
1964, such sums, not to exceed $20,000,000, as may be necessary to carry 
out the purposes of this section." 
(b) Section 702 of such Act is further amended by adding at the 
end thereof the following new subsection: 
"(h) (1) Notwithstanding any other provision of law, if a public 
agency or Indian tribe undertakes to construct only a portion of a 
public work planned with an advance under this section, under title V 
of the War Mobilization and Reconversion Act of 1944, or under the 
Act of October 13, 1949, it shall repay only such proportionate 
amount of the advance relating to the public work as the Admin-
istrator determines to be equitable. 
"(2) The Administrator is authorized to terminate, upon such 
terms and conditions as he shall deem equitable, all or a portion of the 
liability for repayment of any advance made under this section, title 
V of the War Mobilization and Reconversion Act of 1944, or the Act 
of October 13, 1949. Whenever the Administrator determines that 
there is no reasonable likelihood that the public work, or a portion 
of the public work, planned with such advance will be constructed, he 
may terminate the agreement for the advance. Such determination 
shall be conclusive and shall be based on standards prescribed by reg-
ulations to be issued by the Administrator." 
(c) Section 702 of such Act is further amended— 
(1) by striking out "public agencies" wherever that term 
appears in subsection (a) and inserting in lieu thereof "public 
agencies and Indian tribes"; 
(2) by striking out "public agency" in clause (3) of subsection 
(b) and inserting in lieu thereof "public agency or Indian tribe"; 
(3) by striking out "to any public agency" and "by the public 
agency" in subsection (c) and inserting in lieu thereof "to any 
public agency or Indian tribe" and "by the public agency or 
Indian tribe", respectively, and by striking out "by such agency" 
in such subsection and inserting in lieu thereof "by such agency or 
tribe"; and 
(4) by striking out "That if" and all that follows down 
through ^^ATid provided further" 
in subsection (c). 
(d) Section 702(f) of such Act is amended by striking out 
73 stat. ese. 
"$50,000" and inserting in lieu thereof "$100,000". 
(e) Section 702(a) of such Act is amended by inserting immedi-
ately before the first colon the following: ", including, in the case of 
public works to be constructed in connection with the development of 
a medical center, a general plan for the development of such center". 
(f) Section 702(b) of such Act is amended by striking out the last 
sentence. 
800 
PUBLIC LAW 88-560-SEPT. 2, 1964 
[78 STAT. 
TITLE VII—FEDERAL NATIONAL MORTGAGE 
ASSOCIATION 
POOLING o r MORTGAGES FOR SALE 
68 Stat. 613. 
12 u s e 1717. 
12 u s e 1722. 
12 u s e 1723c. 
1721. 
SEC. 701. (a) Section 302 of the National Housing Act is amended 
by adding at the end thereof a new subsection as follows: 
"(c) Notwithstanding any other provision of this Act or of any 
other law, the Association is authorized under section 306 to create, 
accept, execute, and otherwise administer in all respects such trusts, 
receiverships, conservatorships, liquidating or other agencies, or other 
fiduciary and representative undertakings and activities as might be 
appropriate for financing purposes; and in relation thereto the Asso-
ciation may acquire, hold and manage, dispose of, and otherwise deal 
in any first mortgages in which the United States or any agency or 
instrumentality thereof may have a financial interest. The Associa-
tion may join in any such undertakings and activities notwithstanding 
that it is also serving in a fiduciary or representative capacity; and is 
authorized, consistent with section 307, to guarantee any participa-
tions or other instruments, whether evidence of property rights or 
debt, issued for such financing purposes. Any participations or other 
instruments so guaranteed shall to the same extent as securities issued 
or guaranteed by the United States or its instrumentalities be deemed 
to be exempt securities within the meaning of laws administered by the 
Securities and Exchange Commission. 
The amounts of any mort-
gages acquired by the Association under section 306, pursuant to this 
subsection, shall not be included in the total amounts set forth in 
section 306(c)." 
(b) (1) Section 311 of such Act is amended by inserting after 
"obligations" the following: ", participations, or other instruments". 
1
^
2 use 1719, 
(2) Sections 304(b) and 306(b) of such Act are amended respec-
tively by striking out "or obligations which are lawful investments" 
and inserting in lieu thereof "or obligations, participations, or other 
instruments which are lawful investments". 
1
2 use 1723b. 
^3^ Section 310 of such Act is amended by striking out "or in obli-
gations which are lawful investments" and inserting in lieu thereof 
or in obligations, participations, or other instruments which are law-
ful investments". 
(c) The penultimate sentence of paragraph Seventh of section 5136 
of the Revised Statutes is amended by striking out "or obligations of 
the Federal National Mortgage Association" and inserting in lieu 
thereof "or obligations, participations, or other instruments of or 
issued by the Federal National Mortgage Association". 
1
2 use U31 
(d)(1) Section 11(h) of the Federal Home Loan Bank Act is 
amended by striking out "in obligations of the Federal National 
Mortgage Association" and inserting in lieu thereof "in obligations, 
participations, or other instruments of or issued by the Federal Na-
tional Mortgage Association". 
1
2 use 1436. 
^2) The last sentence of section 16 of such Act is amended by 
striking out "in obligations of the Federal National Mortgage Associ-
ation" and inserting in lieu thereof "in obligations, participations, or 
other instruments of or issued by the Federal National Mortgage 
Association". 
(e) (1) Section 1820 of title 38, United States Code, is amended by 
adding at the end thereof the following new subsection: 
"(e) (1) The Administrator is authorized from time to time, as he 
determines advisable, to set aside first mortgage loans, and install-
ment sale contracts, owned and held by him under this chapter as 
the basis for the sale of participation certificates as herein provided. 
12 u s e 24. 
72 Stat. 1213. 
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2. 1964 
801 
For this purpose the Administrator may enter into agreements, 
including trust agreements, with the Federal National Mortgage 
Association, and any other Federal agency, under which the Associa-
tion as fiduciary may sell certificates of participation based on prin-
cipal and interest collections to be received by the Administrator 
and the Association or any other such agency on first mortgage loans 
and installment sale contracts comprising mortgage pools established 
by them. 
The agreement may provide for substitution or with-
drawal of mortgage loans, or installment sale contracts, or for sub-
stitution of cash for mortgages in the pool. The agreement shall 
provide that the Federal National Mortgage Association shall 
promptly pay to the Administrator the entire proceeds of any sale 
of certificates of participation to the extent such certificates are 
based on mortgages, including installment sale contracts, set aside by 
the Administrator and he shall periodically pay to the Association, 
as fiduciary, such funds as are required for payment of interest and 
principal due on outstanding certificates of participation to the extent 
of the pro rata amount allocated to the Administrator pursuant to 
the agreement. 
The agreement shall also provide that the Admin-
istrator shall retain ownership of mortgage loans and installment 
sale contracts set aside by him pursuant to the agreement unless 
transfer of ownership to the fiduciary is required in the event of 
default or probable default in the payment of participation certifi-
cates. The Administrator is authorized to purchase outstanding 
certificates of participation to the extent of the amount of his 
commitment to the fiduciary on participations outstanding and to 
pay his proper share of the costs and expenses incurred by the 
Federal National Mortgage Association as fiduciary pursuant to the 
agreement. 
"(2) The Administrator shall proportionately allocate and deposit 
the entire proceeds received from the sale of participations into the 
funds established pursuant to sections 1823 and 1824 of this chapter, 
as determined on an estimated basis, and the amounts so deposited 
shall be available for the purposes of the funds. 
The Administrator 
may nevertheless make such allocations of that part of the proceeds 
of participation sales representing anticipated interest collections on 
mortgage loans, including installment sale contracts, on other than 
an estimated proportionate basis if determined necessary to assure 
payment of interest on advances theretofore made to the Adminis-
trator by the Secretary of the Treasury for direct loan purposes. 
The Administrator shall set aside and maintain necessary reserves in 
the funds established pursuant to sections 1823 and 1824 of this 
chapter to be used for meeting commitments pursuant to this subsec-
tion and, as he determines to be necessary, for meeting interest 
payments on advances by the Secretary of the Treasury for direct 
loan purposes." 
(2) Section 1823 of title 38, United States Code, is amended by— 
72 stat. i2i4. 
(1) inserting before the period at the end of the last sentence 
of subsection (a) the following: ", and a reasonable reserve for 
meeting commitments pursuant to subsection 1820(e) of this 
title"; and 
(2) inserting before the period at the end of the last sentence of 
subsection (c) the following: "and for the purposes of meeting 
commitments under subsection 1820(e) of this title". 
Ante, 
p. 800. 
802 
PUBLIC LAW 88-560-SEPT. 2, 1964 
[78 STAT. 
F N M A 
REMOVAL OF $ 2 0 , 0 0 0 
MORTGAGE AMOUNT 
LIMITATION 
1
2 usi:' i
V
^
f
? • 
^^^' '^^^- Section 302(b) of the National Housing Act is amended— 
(1) by striking out "any mortgage" in clause (3) and inserting 
1
2 use 1720. 
jj^ jjgy thereof "any mortgage under section 305"; and 
(2) by striking out the proviso in clause (3). 
75 Stat. 176. 
12 u s e 1719. 
70 Stat. 1096. 
F N M A 
N I N E T Y PER CENTUM 
LOANS 
SEC. 703. Section 304(a)(2) of the National Housing Act is 
amended by striking out "80 per centum" and inserting in lieu thereof 
"90 per centum." 
FNMA—^PURCHASE OF PARTICIPATIONS 
SEC. 704. Section 304(d) of the National Housing Act is hereby 
repealed. 
TITLE VIII—TRAINING AND FELLOWSHIP PROGRAMS 
PART 1—FEDERAL-STATE TRAINING PROGRAMS 
FINDINGS AND PURPOSE 
SEC. 801. (a) The Congress finds that the rapid expansion of the 
Nation's urban areas and urban population has caused severe problems 
in urban and suburban development and created a national need to 
(1) provide special training in skills needed for economic and efficient 
community development and (2) support research in new or improved 
methods of dealing with community development problems. 
(b) It is the purpose of this part to assist and encourage the States, 
in cooperation with public or private universities and colleges and 
urban centers, to (1) organize, initiate, develop, and expand programs 
which will provide special training in skills needed for economic and 
efficient community development to those technical and professional 
people who are, or are training to be, employed by a governmental or 
public body which has responsibilities for community development; 
and (2) support State and local research that is needed in connection 
with housing programs and needs, public improvement programing, 
code problems, efficient land use, urban transportation, and similar 
community development problems. 
MATCHING GRANTS TO STATES 
SEC. 802. (a) Subject to the provisions of this part and in accord-
ance with regulations prescribed by him, the Administrator may make 
matching grants to States to assist in— 
(1) organizing, initiating, developing, or expanding programs 
to provide special training in skills needed for economic and effi-
cient community development to those technical and professional 
people who are, or are training to be, employed by a governmental 
or public body which has responsibilities for community develop-
ment; and 
(2) supporting State and local research that is needed in connec-
tion with housing programs and needs, public improvement pro-
graming, code problems, efficient land use, urban transportation, 
and similar community development problems, and collecting, col-
lating, and publishing statistics and information relating to such 
research. 
78 
STAT.] 
PUBLIC LAW 88-560-SEPT. 2, 1964 
803 
(b) No grants may be made to a State under this part unless tlie 
Administrator has approved a plan for the State which— 
(1) sets forth the proposed use of the funds and the objectives 
to be accomplished; 
(2) explains the method by which the required amounts from 
non-Federal sources will be obtained; 
(3) provides such fiscal control and fund accounting procedures 
as may be reasonably necessary to assure proper disbursement of, 
and accounting for, Federal funds paid to the State under this 
part; 
(4) designates an officer or agency of the State government 
who has responsibility and authority for the administration of a 
statewide research and training program as the officer or agency 
with responsibility and authority for the execution of the State 
program under this part; and 
(5) provides that such officer or agency will make such reports 
to the Administrator, in such form, and containing such informa-
tion, as may be reasonably necessary to enable the Administrator 
to perform his duties under this part. 
(c) No grant may be made under this part for any use unless an 
amount at least equal to such grant is made available from non-Federal 
sources for the same purpose and for concurrent use. 
(d) There is authorized to be appropriated for grants under this 
part, without fiscal year limitation, not to exceed $10,000,000. 
STATE L I M I T 
SEC. 803. Not more than 10 per centum of the total amount author^ 
ized to be appropriated by section 802(d) may be used for making 
grants to any one State. 
TECHNICAL ASSISTANCE, STUDIES, AND PUBLICATION OF INFORMATION 
SEC. 804. In order to carry out the purpose of this part, the Admin-
istrator is authorized to provide technical assistance to State and local 
governmental or public bodies and to undertake such studies and pub-
lish and distribute such information, either directly or by contract, as 
he shall determine to be desirable. Nothing contained in this part shall 
limit any authority of the Administrator under any other provision 
of law. 
MISCELLANEOUS 
SEC. 805. (a) As used in this part, the term "State" means any State 
of the United States, the District of Columbia, the Commonwealth of 
Puerto Rico, and the Virgin Islands; and the term "Administrator" 
means the Housing and Home Finance Administrator. 
(b) There are authorized to be appropriated such sums as may be 
necessary for administrative and other expenses in carrying out this 
part. 
PART 2—FELLOWSHIPS FOR CITY PLANNING AND URBAN STUDIES 
SEC. 810. (a) There is hereby authorized to be appropriated not to 
exceed $500,000 annually, for a three-year period commencing on 
July 1, 1964, to be used by the Housing and Home Finance Adminis-
trator for the purpose of providing fellowships for the graduate 
training of professional city planning and urban and housing tech-
nicians and specialists as herein provided. Persons shall be selected 
for such fellowships solely on the oasis of ability and upon the recom-
mendation of the Urban Studies Fellowship Advisory Board estab-
»*State. 
Appropriation. 
Establishment. 
804 
PUBLIC LAW 88-560-SEPT. 2, 1964 
[78 STAT. 
lished pursuant to subsection (b). Fellowships shall be solely for 
training in public and private nonprofit institutions of higher educa-
tion having programs of graduate study in the field of city planning 
or in related fields (including architecture, civil engineering, econom-
ics, municipal finance, public administration, and sociology), which 
programs are oriented to training for careers in city and regional 
planning, housing, urban renewal, and community development. 
Fe"[orsh%"Ad- 
. (b) There is hereby established the Urban Studies Fellowship Ad-
visory Board, 
visory Board (hereinafter referred to as the "Board"), which shall 
n<..„u,i.u_._. 
consist of nine members to be appointed by the Housing and Home 
Finance Administrator as follows: Three from public institutions of 
higher learning, and three from private nonprofit institutions of 
higher education, who are the heads of departments which provide 
academic courses appropriately related to the fields referred to in sub-
section (a), and three from national organizations which are directly 
concerned with problems relating to urban, regional, and community 
development. The Board shall meet upon the request of the Adminis-
trator and shall make recommendations to him with respect to persons 
to be selected for fellowships under this section. 
Members of the 
Board shall be entitled to receive transportation expenses and a per 
diem in lieu of subsistence as authorized for members of advisory 
committees created pursuant to section 601 of the Housing Act of 1949. 
68 Stat. 645. 
12 use 170 Ih. 
TITLE IX—SAVINGS AND LOAN ASSOCIATIONS 
76 Stat. 778. 
12 use 1464. 
SEC. 901. (a) The first sentence of section 5(c) of the Home 
Owners' Loan Act of 1933 is amended by striking out "fifty miles" 
and inserting in lieu thereof "one hundred miles". 
(b) The third sentence of section 403(b) of the National Housing 
1
2 use 1726. 
^Q^^ jg amended by striking out all that precedes the first semicolon 
and inserting in lieu thereof the following: "Each applicant for such 
insurance shall also file with its application an agreement that 
during the period that the insurance is in force it will not make any 
loans beyond one hundred miles from its principal office, except 
(1) loans in the area beyond such one-hundred-mile limit in which it 
was operating prior to June 27, 1934, and (2) loans which are made 
pursuant to regulations of the Corporation: Provided, 
That such 
agreement shall further provide that any loan made beyond fifty 
miles from the applicant's principal office (and outside the territory 
in which it was operating on such date) shall also be subject to such 
regulations". 
SEC. 902. The first proviso in section 5(c) of the Home Owners' 
?2uscf464 
Loan Act of 1933 is amended— 
(1) by striking out "$35,000" and inserting in lieu thereof 
"$40,000"; and 
(2) by striking out ", except that the aggregate sums invested 
pursuant to the two exceptions in this proviso shall not exceed 30 
per centum of the assets of such association". 
SEC. 903. The next to last paragraph of section 5(c) of the Home 
Owners' Loan Act of 1933 is amended to read as follows: 
"Without regard to any other provision of this subsection, any such 
association is authorized to invest not more than 5 per centum of its 
assets in, or in interests in, real property located within urban 
renewal areas as defined in subsection (a) of section 110 of the Hous-
42 use f
4
^
6
^
6 
^^^ -^^^ ^^ -^^^^ ^^^ obligations secured by first liens on real property 
so located, but no investment shall be made by an association under 
this sentence in real property or any interest therein if the aggregate 
investment of the association under this sentence in real property and 
interests therein, determined as prescribed by the Board, would there-
upon exceed 2 per centum of the assets of the association." 
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1964 
805 
SEC. 904. Section 5(c) of the Home Owners" Loan Act of 1983 is 
1
2 use 1464. 
amended by adding at the end thereof a new paragraph as follows: 
"'For the purpose of this section the terms 'real property' and 
'real estate' shall include a leasehold or subleasehold estate in real 
property under a lease or sublease the term of which does not expire, 
or which is renewable automatically or at the option of the holder 
(or at the option of the association) so as not to expire, for at least 
hfteen years beyond the maturity of the debt." 
SEC. 905. Section 5(c) of the Home Owners' Loan Act of 1933 is 
further amended by adding at the end thereof (after the paragraph 
added by section 804 of this Act) the following new paragraph: 
"Any such association is authorized to invest in the capital stock, 
obligations, or other securities of any corporation organized under the 
laws of the State, District, Commonwealth, territory, or possession in 
which the home office of the association is located, if the entire capital 
stock of such corporation is available for purchase only by savings and 
loan associations of that State, District, Commonwealth, territory, or 
Ix>ssession and by Federal savings and loan associations having their 
home offices therein, but no association may make any investment under 
this sentence if its aggregate outstanding investment under this sen-
tence, determined as prescribed by the Board, would thereupon exceed 
1 per centum of its assets." 
SEC. 906. Section 10(b) of the Federal Home Loan Bank Act is 
ei stat. 714; 
J J 
^ ^ 
76 Stat. 779. 
amended— 
^ ^ 
.
.
. 
12 use 1430. 
(1) by striking out "twenty-five" in clause (1) and inserting in 
lieu thereof "thirty"; and 
(2) by striking out "$35,000" in clause (2) and inserting in lieu 
thereof ^'$40,000". 
SEC. 907. The second proviso in the fii-st paragraph of section 5(c) 
of the Home Owners' Loan Act of 1933 is amended to read as follows: 
^^ use i464. 
": And provided further, That any portion of the assets of such asso-
ciations may be invested in obligations of, or fully guaranteed as to 
principal and interest by, the United States, or in the stock or bonds of 
a Federal Home Loan Bank, or in obligations, participations, or other 
instruments of or issued by, or fully guaranteed as to principal and 
interest by, the Federal National Mortgage Association or any other 
agency of the United States; or in general obligations of any State 
or of any political subdivision thereof; and as used in this proviso the 
term 'State' shall include the District of Columbia, the Commonwealth 
of Puerto Rico, and the possessions of the United States". 
SEC. 908. The first sentence of the second paragraph of section 5(c) 
of the Home Owners' Loan Act of 1933 is amended to read as follows: 
"Without regard to any other provision of this subsection except the 
urea requirement, any such association is authorized to invest a sum 
not in excess of 20 per centum of the assets of such association in loans 
insured under title I of the National Housing Act, in home improve- j/gg^^*^ ^^°^" 
ment loans insured under title I I of the National Housing Act, in 
1
2 use 1707-
unsecured loans insured or guaranteed under the provisions of the i7i5y. 
Servicemen's Readjustment Act of 1944, as amended, or chapter 37 of 
ss stat. 284, 
title 38 of the United States Code, and in other loans for property 
^2 stat, 1203. 
alteration, repair, or improvement: Prcnrided, That no such loan, unless 
so insured or guaranteed, shall be made in excess of $5,000." 
SEC. 909. Title IV of the National Housing Act is amended by add- ^730"^^ ^^^^ 
ing at the end thereof the following new section : 
806 
PUBLIC LAW 88-560-SEPT. 2, 1964 
[78 STAT. 
"INVESTMENT OF CERTAIN FUNDS I N ACCOUNTS OF INSURED 
INSTITUTIONS 
"SEC. 409. The savings accounts and share accounts held by institu-
tions insured by the Corporation, to the extent they are insured by the 
(Corporation, shall be lawful investments and may be accepted as secu-
rity for all public funds of the United States, fiduciary and trust funds 
under the authority or control of the United States or any officer or 
officers thereof, and for the funds of all corporations organized under 
the laws of the United States (subject to any regulatory authority 
otherwise applicable), regardless of any limitation of law upon the 
investment of any such funds or upon the acceptance of security for 
the investment or deposit of any of such funds.'' 
1
2 use 1464. 
SEC. 910. Section 5(c) of the Home Owners' Loan Act of 1933 is 
amended by inserting after the second paragraph the following new 
paragraph: 
"Without regard to any other provision of this subsection, any such 
association is authorized to invest in loans, obligations, and advances 
of credit (all of which are hereinafter referred to as 'loans") made for 
the payment of expenses of college or university education, but no 
association shall make any investment in loans under this paragraph 
if the prinicpal amount of its investment in such loans, exclusive of 
any investment which is or which at the time of its making was other-
wise authorized, would thereupon exceed 5 per centum of its assets." 
TITLE X—MISCELLANEOUS 
OPEN-SPACE PROGRAM—GRANT AUTHORIZATION 
11 usi:' /s^olja 
^^^- ^^^1- Section 702(b) of the Housing Act of 1961 is amended— 
(1) by striking out "$50,000,000" and inserting in lieu thereof 
"$75,000,000"; and 
(2) by adding at the end thereof the following: "All funds so 
appropriated shall remain available until expended." 
COLLEGE HOUSING 
SEC. 1002. The second paragraph of section 404(b) of the Housing 
64 Stat. 80; 
j^ct of 1950 is amended by striking out the period and inserting in lieu 
^^i2*usc ^
1
7
*
4
9
c
. 
thereof the following: ": Provided^ That where the law of any State in 
effect on the date of enactment of the Housing Act of 1964 prevents the 
institution or institutions, for whose students or students and faculty 
the housing is to be provided, from cosigning the note, the Adminis-
trator shall require the corporation and the proposed project to be 
approved by such institution (or by any one or more of such institu-
tions) in lieu of such cosigning." 
ACQUISITION OF CERTAIN HOUSING BY SECRETARY OF DEFENSE 
SEC. 1003. The first sentence of section 404(a) of the Housing 
73 Stat. 683. 
Amendments of 1955 is amended by inserting before the period at the 
end thereof the following: ", or (3) any housing situated on or adja-
cent to a military installation which was (A) completed prior to July 
1, 1952, (B) considered by the Department of Defense, prior to con-
struction, as being necessary to meet an existing military family 
housing need and considered as military housing by the Federal 
Housing Commissioner, and (C) financed with mortgages insured 
under section 608 of the National Housing Act, including adjacent 
property constructed primarily to provide commercial facilities for 
the occupants of such housing". 
42 use 1594a. 
56 Stat. 30 3. 
12 use 1743. 
78 STAT. ] 
PUBLIC LAW 88-560-SEPT. 2, 1964 
807 
REAL ESTATE LOANS BY NATIONAL BANKS 
SEC. 1004. Clause (3) of the third sentence of the first paragraph of 
section 24 of the Federal Reserve Act is amended to read as follows: 
"(3) any such loan may be made in an amount not to exceed 80 per 
centum of the appraised value of the real estate offered as security 
and for a term not longer than twenty-five years if the loan is secured 
by an amortized mortgage, deed of trust, or other such instrument 
under the terms of which the installment payments are sufficient to 
amortize the entire principal of the loan withm the period ending on 
the date of its maturity, and". 
69 Stat. 633; 
73 Stat. 489. 
12 use 371. 
FOREST HILLS PROJECT IN PADUCAH, KENTUCKY 
SEC. 1005. The Federal Housing Commissioner is authorized and 
directed to sell to the Paducah-McCracken County Development 
Council, Incorporated, of Paducah, Kentucky, for use as a public 
facility (including such use by the Paducah Junior College as may be 
deemed appropriate by such Council), and for a total price of 
$1,000,000, all right, title, and interest of the ITnited States in and to 
the housing project in Paducah known as Forest Hills (a project 
constructed under title VIII of the National Housing Act as in effect 
^^ ^^^ 1^483-
prior to August 11, 1955, and subsequently acquired by the Federal i748h. 
Housing Administration). 
P A Y M E N T I N L I E U O F T A X E S B Y HAWAII HOUSING AUTHORITY 
SEC. 1006. Notwithstanding the provisions of any other law or any 
contract or rule of law, the Public Housing Commissioner shall ap-
prove a payment in lieu of taxes to be made for the fiscal year ended 
June 30, 1959, in the amount of $24,167.78, by the Hawaii Housing 
Authority to the city and county of Honolulu. 
TRANSFER OF LAND FOR URBAN RENEWAL PURPOSES BY PHILADELPHIA 
HOUSING AUTHORITY 
SEC. 1007. (a) Notwithstanding the provisions of title I of the 
Housing Act of 1949 and the United States Housing Act of 1937, the 
Housing and Home Finance Administrator and the Public Housing 
Commissioner are authorized and directed to consent to the transfer 
by the Philadelphia Housing Authority to the Philadelphia Rede-
velopment Authority of all property acquired by the Housing Author-
ity for low-rent housing project numbered Pennsylvania 2-51, on 
condition that (1) an amount which, together with any funds of the 
Housing Authority available for the purpose, is sufficient to pay and 
discharge all obligations incurred by the Housing Authority in con-
nection with such low-rent housing project and owing at the time of 
transfer, will be paid by the Redevelopment Authority to the Public 
Housing Administration to be applied in satisfaction of the Housing 
Authority's obligations which it cannot meet with its own funds 
available for the purpose, and (2) the total amount so paid by the 
Redevelopment Authority will be included in the gross project cost of 
its Whitman urban renewal project, Pennsylvania R-35. 
(b) The Housing and Home Finance Administrator and the Public 
Housing Commissioner are authorized to modify any contracts here-
tofore entered into and to take any other appropriate action necessary 
to carry out the provisions of subsection (a). 
42 u s e 1441-
1464; Ante, p. 788. 
50 Stat. 888. 
42 u s e 1430. 
31-667 0-65—54 
808 
PUBLIC LAW 88-561-SEPT. 2, 1964 
[78 STAT. 
42 u s e 1441-
1464; Ante, p. 788. 
75 Stat. 169. 
42 u s e 1463. 
ELIGIBILITY OF CERTAIN LOCAL GKANTS-IN-AID 
SEC. 1008. (a) Notwithstanding the date of the commencement of 
construction of the Fox Point hurricane dam in Providence, Rhode 
Island, local expenditures made in connection with such dam shall, 
to the extent otherwise eligible, be counted as a local grant-in-aid to 
the railroad relocation urban renewal project (Rhode Island R-S) 
in accordance with the provisions of title I of the Housing Act of 1949. 
(b) Notwithstanding the provisions of section 112(b) of the Hous-
ing Act of 1949, expenditures made by the Methodist Hospital of 
Central Illinois, and Saint Francis Hospital, Peoria, Illinois, for the 
purchase of two parcels of land on or about June 25 and July 28,1956, 
for a price of not more than $82,980, shall if otherwise eligible be 
counted as local grants-in-aid to the Peoria "Medical Center" urban 
renewal project (Illinois R-61) in accordance with the remaining pro-
visions of title I of that Act. 
Approved September 2, 1964. 
September 2, 1964 
[H.R. 130] 
Reclamation 
projects. 
Rights-of-way. 
Public Law 88-561 
AN ACT 
To provide for the payment of compensation, including severance damages, for 
rights-of-way acquired by the United States in connection with reclamation 
projects the construction of which commenced after January 1, 1961. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That notwithstand-
ing the existence of any reservation of right-of-way for canals under 
the Act of August 30, 1890 (26 Stat. 371, 391; 43 U.S.C. 945), the 
Secretary of the Interior shall pay just compensation, including 
severance damages, to the owners of private land utilized for ditches 
or canals in connection with any reclamation project, or any unit or 
any division of a reclamation project, provided the construction of 
said ditches or canals commenced after January 1, 1961, and such 
compensation shall be paid notwithstanding the execution of any 
agreements or any judgments entered in any condemnation proceed-
ing, prior to the effective date of this Act. 
Approved September 2, 1964. 
September 2, 1964 
[H.R. 11338] 
Public Law 88-562 
AN ACT 
To remove certain conditions subject to which certain real property in South 
Boston, Massachusetts, was authorized to be conveyed to the Massachusetts 
Port Authority. 
Massachusetts 
Port Authority. 
Land transfer, 
repeal of con-
ditions. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That section 2 of the 
Act entitled "Aii Act to authorize the Secretary of the Navy to trans-
fer to the Massachusetts Port Authority, an instrumentality of the 
Commonwealth of Massachusetts, certain lands and improvements 
thereon comprising a portion of the so-called E Street Annex, South 
Boston Annex, Boston Naval Shipyard, in South Boston, Massachu-
setts, in exchange for certain other lands", approved July 7, 1960 
(Public Law 86-602; 74 Stat. 355), is repealed. 
Approved September 2, 1964.