An Act to provide additional funds under section 202 (a) (4) of the Housing Act of 1959, and to amend title V of the Housing Act of 1949, in order to provide low and moderate cost housing, both urban and rural, for the elderly
PL 87-723 (H.R.12628), enacted 09/28/1962

670 
PUBUC LAW 87-723-SEPT. 28, 1962 
[76 STAT. 
Repeal. 
38 Stat. 262. 
68A Stat. 203. 
SEC. 3. Subsection (k) of section 11 of the Federal Reserve Act (12 
U.S.C. 248 (k)) is repealed. 
SEC. 4. Paragraph (2) of subsection (a) of section 584 of the In-
ternal Revenue Code of 1954 is amended by inserting "or the Comp-
troller of the Currency" immediately after "the Board of Governors of 
the Federal Reserve System". 
SEC. 5. Section 581 of the Internal Revenue Code of 1954 is amended 
by striking out "section 11 (k) of the Federal Reserve Act (38 Stat. 
262; 12 U.S.C. 248 (k))", and inserting in lieu thereof "authority of 
the Comptroller of the Currency". 
Approved September 28, 1962. 
Public Law 87-723 
September 28, 1962 
AN A C T 
[H. R. i262j]_ To provide additional funds under section 202(a) (4) of the Housing Act of 
1959, and to amend title V of the Housing Act of 1949, in order to provide 
low and moderate cost housing, both urban and rural, foi* the elderly. 
Senior Citizens 
Housing Act of 
1962. 
Leans, revolv-
ing fund. 
73 Stat. 667; 
75 Stat. 163. 
12 u s e 1701q. 
Farm housing, 
financial as-
s 1 St an ce, 
63 Stat. 432. 
42 u s e 1471. 
Be it enacted hy the Senate and lionise of Representatives 
of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Senior Citizens Housing Act of 1962". 
SEC. 2. The Congress finds that there is a large and growing need 
for suitable housing for older people both in urban and rural areas. 
Our older citizens face special problems in meeting their housing needs 
because of the prevalence of modest and limited incomes among the 
elderly, their difficulty in obtaining liberal long-term home mortgage 
credit, and their need for housing planned and designed to include 
features necessary to the safety and convenience of the occupants in a 
suitable neighborhood environment. 
The Congress further finds that 
the present programs for housing the elderly under the Housing and 
Home Finance Agency have proven the value of Federal credit assist-
ance in this field and at the same time demonstrated the urgeijt need for 
an expanded and more comprehensive effort to meet our responsibili-
ties to our senior citizens. 
SEC. 3. (a) Section 202(a) (4) of the Housing Act of 1959 is amended 
by striking out 
"$125,000,000" and inserting in lieu 
thereof 
"$225,000,000". 
{b) Effective with respect to applications for loans under section 202 
of the Housing Act of 1959 made after the date of the enactment of 
this Act— 
(1) section 202(d) (1) of such Act is amended by striking out 
"(A)", and by striking ", and (B)" and all that follows and in-
serting in lieu thereof a period; 
(2) section 202(d) (7) of such Act is amended by striking out 
all that follows "new structures" and inserting in lieu thereof a 
:; period; and 
(3) section 202(d) (8) of such Act is amended by striking out 
"(A)", and by striking out ", and (B)" and all that follows and 
inserting in lieu thereof a period. 
SEC. 4. (a) (1) Section 501 of the Housing Act of 1949 is amended— 
(A) by striking out the period at the end of subsection (a) and 
inserting in lieu thereof the following: ", and (3) to elderly per-
sons who are or will be the owners of land in rural areas for the 
construction, improvement, alteration, or repair of dwellings and 
related facilities, the purchase of previously occupied dwellings 
76 STAT.] 
PUBLIC LAW 87-723-SEPT. 28, 1962 
671 
and related facilities and the purchase of land constituting a mini-
mum adequate site, in order to provide them with adequate dwell-
ings and related facilities for their own use."; 
(B) by inserting at the end of subsection (b) the following 
new paragraph: 
"{3) For the purposes of this title, the term 'elderly persons' means 
persons who are 62 years of age or over."; and 
(C) by inserting immediately before the semicolon at the end 
of clause (1) of subsection (c) the following: ", or that he is an 
elderly person in a rural area without an adequate dwelling or 
related facilities for his own use". 
(2) Section 502(a) of such Act is amended by adding at the end 
thereof the following new sentence: "In cases of applicants who are 
elderly persons, the Secretary may accept the personal liability of any 
person with adequate repayment ability who will cosi^n the appli-
cant's note to compensate for any deficiency in the applicant's repay-
ment ability." 
(b) Title V of the Housing Act of 1949 is amended by adding at 
the end thereof the following new section: 
"Elderly per-
Loans for hous-
ing on adequate 
farms. 
42 u s e 1472. 
63 Stat. 432. 
42 u s e 1471-
1484. 
" D I R E C T A N D I N S U R E D L O A N S TO PROVIDE H O U S I N G A N D RELATED F A C I L I T I E S 
FOR ELDERLY PERSONS AND FAMILIES IN RURAL AREAS 
"SEC. 515. (a) The Secretary is authorized to make loans to private 
nonprofit corporations and consumer cooperatives to provide rental 
housing and related facilities for elderly persons and elderly families 
of low or moderate income in rural areas, in accordance with terms 
and conditions substantially identical with those specified in section 
502; except that— 
" (1) no such loan shall exceed the development cost or the value 
of the security, whichever is less; 
"(2) such loans shall bear interest at rates determined by the 
Secretary, not to exceed the maximum rate provided in section 
202(a) (3) of the Housing Act of 1959; and 
"(3) such a loan may be made for a period of up to fifty years 
from the making of the loan. 
There is authorized to be appropriated not to exceed $50,000,000, 
which shall constitute a revolving fund to be used by the Secretary in 
carrying out this subsection. 
"(b) The Secretary is authorized to insure and make commitments 
to insure loans made to any individual, corporation, association, trust, 
or partnership to provide rental housing and mlated facilities for 
elderly persons and elderly families in rural areas, in accordance with 
terms and conditions substantially identical with those specified in 
section 502; except that— 
"(1) no such loan shall exceed $100,000 or the development cost 
or the value of the security, whichever is least; 
"(2) such loans shall bear interest at rates determined by the 
Secretary, not to exceed the maximum rate provided in section 
203 (b)(5) of the National Housing Act; 
"(3) provide for complete amortization by periodic payments 
within such term as the Secretary may prescribe; 
"(4) for insuring such loans, the Secretary shall utilize the 
Agricultural Credit Insurance Fund subject to all the provisions 
of section 309 and the second and third sentences of seqtion 308 
of the Consolidated Farmers Home Administration Act of 1961, 
including the authority in section 309(f) (1) of that Act to utilize 
the insurance fund to make, sell, and insure loans which could be 
42 use 1472. 
73 Stat. 667. 
12 use i.701q. 
Appropriation. 
68 Stat. 591. 
12 u s e 1709. 
Agricultural 
eredit Insurance 
Fund. 
75 Stat. 309, 
308. 
7 use 1929, 
1928. 
672 
PUBLIC LAW 87-724-SEPT. 29, 1962 
[76 STAT. 
Loan authority, 
expiration date. 
Definitions. 
63 Stat. 438; 
IS Stat. 186. 
42 u s e 1483. 
42 u s e 1481. 
42 u s e 1474. 
Ante, p. 671. 
42 u s e 1471. 
42 u s e 1476. 
42 u s e 1484. 
insured under this subsection; but the aggregate of the principal 
amounts of such loans made by the Secretary and not disposed of 
shall not exceed $10,000,000 outstanding at any one time; and the 
Secretary may take liens running to the United States though the 
notes may be held by other lenders; and 
"(5) no loan shall be insured under this subsection after June 
30, 1964. 
"(c) No loan shall be made or insured under subsection (a) or (b) 
unless the Secretary finds that the construction involved will be under-
taken in an economical manner and will not be of elaborate or extrava-
gant design or materials. 
"(d) As used in this section— 
"(i) the term 'housing' means new or existing housing suitable 
for dwelling use by elderly persons or elderly families; 
"(2) the term 'related facilities' includes cafeterias or dining 
halls, community rooms or buildings, appropriate re^eation 
facilities, and other essential service facilities; 
"(3) the term 'elderly persons' means persons who are 62 years 
of age or over; and the term 'elderly families' means families the 
head of which (or his spouse) is 62 years of age or over; and 
"(4) the term 'development cost' means the costs of construct-
ing, purchasing, improving, altering, or repairing new or existing 
housing and related facilities and purchasing and improving the 
necessary land, including necessary and appropriate fees and 
charges approved by the Secretary. 
"(e) Amounts made available pursuant to section 513 of this Act 
shall be available for administrative expenses incurred under this 
section." 
(c) (1) Section 511 of the Housing Act of 1949 is amended— 
(A) by striking out "section 504(b)" and inserting in lieu 
thereof "section 504(b) or 515(a)"; and 
(B) by striking out "$650,000,000" and inserting in lieu thereof 
"$700,000,000, of which $50,000,000 shall be available exclusively 
for assistance to elderly persons as provided in clause (3) of 
section 501(a)". 
(2) Section 506(a) of such Act is amended by striking out "section 
514" each place it appears and inserting in lieu thereof "sections 514 
and 515". 
(3)'Section 504(a) of such Act is amended by striking out "(1) 
in the form of a loan, or combined loan and grant, in excess of $1,000, 
or (2) in the form of a grant (whether or not combined with a loan) 
in excess of $500" and inserting in lieu thereof "in the form of a loan, 
grant, or combined loan and grant in excess of $1,000". 
(4) Paragraph (12) of section 5200 of the Revised Statutes (12 
U.S.C. 84) is amended by inserting "or title V of the Housing Act of 
1949," immediately before "shall be subject under this section". 
Approved September 28, 1962. 
Public Law 87-724 
September 29. 1962 
J O I N T R E S O L U T I O N 
[H. J. Res. 897] 
Making continuing appropriations for the fiscal year 1963, and for other purposes. 
Resolved by the /Senate and House of Representatives 
of the United 
States of America in Congress assembled^ That the joint resolution of 
Ante, p. 427. 
August 31, 1962 (Public Law 87-625), is hereby amended by striking 
out "September 30, 1962" and inserting in lieu thereof "October 31, 
1962". 
Approved September 29, 1962.