Housing and Community Development Amendments of 1979
PL 96-153 (H.R.3875), enacted 12/21/1979

PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1101 
Public Law 96-
96th Congress 
153 
An Act 
To amend and extend certain Federal laws relating to housing, community and 
neighborhood development and preservation, and related programs, and for other 
purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may be 
cited as the "Housing and Community Development Amendments of 
1979". 
TITLE I—COMMUNITY AND NEIGHBORHOOD 
DEVELOPMENT AND CONSERVATION 
Dec. 21, 1979 
[H.R. 3875] 
Housing and 
Community 
Development 
Amendments of 
1979. 
42 u s e 5301 
note. 
Multifamily 
properties. 
REHABILITATION LOANS 
SEC. lOL (a) Section 312(d) of the Housing Act of 1964 is amended— 42 USC 1452b. 
(1) by striking out "and not to exceed $245,000,000 for the fiscal 
year beginning on October 1, 1978" in the first sentence and 
inserting in lieu thereof "not to exceed $245,000,000 for the fiscal 
year beginning on October 1,1978, and not to exceed $140,000,000 
for the fiscal year beginning on October 1,1979"; and 
(2) by adding at the end thereof the following new sentence: 
"Of the amounts available for loans under this section during 
any fiscal year beginning on or after October 1, 1979, the 
Secretary may utilize not more than $75,000,000 for rehabilita-
tion loans for multifamily properties.". 
(b) Section 312(h) of such Act is amended— 
(1) by striking out "November 30, 1979" and inserting in lieu 
thereof "September 30,1980"; and 
(2) by striking out "December 1, 1979" and inserting in lieu 
thereof "October 1,1980". 
(c) Subsections (i) and (j) of section 312 of such Act, as added by 
section 101(b) of the Housing and Community Development Amend-
ments of 1978, are redesignated as subsections (j) and (k), respectively. 92 
Stat. 
2081. 
42 
USC 
1452b. 
COMPREHENSIVE PLANNING 
SEC. 102. The second sentence of section 701(e) of the Housing Act of 
1954 is amended bv striking out "and not to exceed $57,000,000 for the 40 USC 461. 
fiscal year 1979' and inserting in lieu thereof "not to exceed 
$57,000,000 for the fiscal year 1979, and not to exceed $50,000,000 for 
the fiscal year 1980". 
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM 
SEC. 103. (a) Section 103(c) of the Housing and Community Develop-
ment Act of 1974 is amended by striking out "a sum not in excess of 
$400,000,000 for supplemental grant assistance under section 119 for 
each of the fiscal years 1978, 1979, and 1980" and inserting in lieu 
thereof "for supplemental grant assistance under section 119 a sum 
42 USC 5303. 
42 USC 5318. 
93 STAT. 1102 
PUBLIC LAW 96-153—DEC. 21, 1979 
42 use 5303. 
42 use 5304. 
Waiver. 
42 use 5806. 
Urban county, 
computation of 
funds. 
not to exceed $400,000,000 for each of the fiscal years 1978 and 1979, 
and not to exceed $675,000,000 for the fiscal year 1980". 
(b) Section 103(a)(2) of the Housing and Community Development 
Act of 1974 is amended by striking out "$250,000,000 for the fiscal 
year 1980" and inserting in lieu thereof "$275,000,000 for the fiscal 
year 1980". 
(c) Section 104(b)(3) of such Act is amended to read as follows: 
"(3) The Secretary may waive all or part of the requirements 
contained in paragraphs (1), (2), and (3) of subsection (a) if (A) the 
application does not involve a comprehensive community develop-
ment program, as determined by the Secretary, and (B) the Secretary 
determines that, considering the nature of the activity to be carried 
out, such waiver is not inconsistent with the purposes of this title.". 
(d) Section 106(m) of such Act is amended by striking out "or fiscal 
year 1979" and inserting in lieu thereof ", fiscal year 1979, or fiscal 
year 1980". 
(e) Section 106(b) of such Act is amended by adding at the end 
thereof the following new paragraph: 
"(5) In computing amounts under this section with respect to any 
urban county, there shall be included all of the area of any unit of 
local government which is part of, but is not located entirely within 
the boundaries of, such urban county if the part of such unit of local 
government which is within the boundaries of such urban county 
would otherwise be included in computing the amount for such urban 
county under this section, and if the part of such unit of local 
government which is not within the boundaries of such urban county 
is not included as a part of any other unit of local government for the 
purpose of this section. Any amount received by such urban county 
under this section may be used with respect to the part of such unit of 
local government which is outside the boundaries of such urban 
county.". 
(f) Section 102(a)(1) of such Act is amended by inserting "the 
Northern Mariana Islands," after "Guam,". 
(g) Section 104(h) of such Act is amended— 
(1) by inserting in the first sentence of paragraph (1)— 
(A) after "National Environmental Policy Act of 1969" the 
following: "and other provisions of law which further the 
purposes of such Act (as specified in regulations issued by 
the Secretary)"; and 
(B) after "such Act" the following: ", and such other 
provisions of law as the regulations of the Secretary 
specify,"; 
(2) by inserting in the second sentence of paragraph (2) after 
"National Environmental Policy Act" the following: "of 1969 and 
such other provisions of law as the regulations of the Secretary 
specify"; and 
(3) by inserting in paragraph (3)(D)(i)— 
(A) after "National Environmental Policy Act of 1969" the 
following: "and each provision of law specified in regulations 
issued by the Secretary"; and 
(B) after "such Act" the following: "or other such provision 
of law". 
POCKETS OF POVERTY 
42 use 5318. 
SEC. 104. (a) Section 119(b) of the Housing and Community Develop-
ment Act of 1974 is amended by inserting "(1)" after "(b)" and by 
adding at the end thereof the following: 
42 use 5302. 
42 use 5304. 
42 use 4321 
note. 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1103 
"(2) A city or urban county which fails to meet the minimum 
standards established pursuant to paragraph (1) shall be eligible for 
assistance under this section if it meets the requirements of the first 
sentence of paragraph (1), and— 
"(A) in the case of a city with a population of fifty thousand 
persons or more or an urban county, contains an area (i) 
composed of one or more contiguous census tracts, enumeration 
districts, or block groups, as defined by the United States Bureau 
of Census, having at least a population often thousand persons or 
10 per centum of the population of the city or urban county, (ii) in 
which at least 70 per centum of the residents have incomes below 
80 per centum of the median income of such city or urban county, 
and (iii) in which at least 30 per centum of the residents have 
incomes of below the national poverty level; or 
"(B) in the case of a city with a population of less than fifty 
thousand persons, contains an area (i) composed of one or more 
contiguous census tracts, enumeration districts, or block groups 
or other areas defined by the United States Bureau of Census or 
for which data certified by the United States Bureau of Census 
are available having at least a population of two thousand and 
five hundred persons or 10 per centum of the population of such 
city, whichever is greater, (ii) in which at least 70 per centum of 
the residents have incomes below 80 per centum of the median 
income for such city, and (iii) in which at least 30 per centum of 
the residents have incomes of below the national poverty level. 
The Secretary shall utilize up to, but not more than, 20 per centum of 
the funds appropriated for use in any fiscal year under this section 
for the purpose of making grants to cities and urban counties eligible 
under this paragraph.". 
(b) Section 119(e) of such Act is amended— 
(1) by striking out "In" after "(e)" and inserting in lieu thereof 
"(1) Except in the case of a city or urban county eligible under 
subsection (b)(2), in"; 
(2) by redesignating clauses (1), (2), and (3) as clauses (A), (B), 
and (C); and 
(3) by adding at the end thereof the following: 
"(2) For the purpose of making grants with respect to areas 
described in subsection (b)(2), the Secretary shall establish selection 
criteria, which must include (A) factors determined to be relevant by 
the Secretary in assessing the comparative degree of physical and 
economic deterioration among eligible areas, and (B) such other 
criteria as the Secretary may determine, including at a minimum the 
criteria listed in clause (C) of paragraph (1) of this subsection. 
"(3) The Secretary may not approve any grant to a city or urban 
county eligible under subsection (b)(2) unless— 
"(A) the grant will be utilized in connection with a project 
located in an area described in subsection (b)(2), except that the 
Secretary may waive this requirement where the Secretary 
determines (i) that there is no suitable site for the project within 
such area, (ii) the project will be located directly adjacent to such 
area, and (iii) the project will substantially contribute to the 
physical and economic development of such area; 
"(B) the city or urban county has demonstrc ted to the satisfac-
tion of the Secretary that basic services supplied by the city or 
urban county to the area described in subsection (b)(2) are at least 
equivalent, as measured by per capita expenditures, to those 
supplied to other areas within the city or urban county which are 
similar in population size and physical characteristics and which 
City or urban 
county, 
eligibility 
requirements for 
grants. 
42 use 5318. 
93 STAT. 1104 
PUBLIC LAW 96-153—DEC. 21, 1979 
have median incomes above the median income for the city or 
urban county; 
"(C) the grant will be utilized in connection with a project 
which will directly benefit the low- and moderate-income fami-
lies and individuals residing in the area described in subsection 
(b)(2); and 
"(D) the city or urban county makes available, from its own 
funds or from funds received from the State or under any Federal 
program which permits the use of financial assistance to meet 
the non-Federal share requirements of Federal grant-in-aid pro-
grams, an amount equal to 20 per centum of the grant to be 
available pursuant to this section to be used in carrying out the 
activities described in the application.". 
URBAN DEVELOPMENT ACTION GRANT PROGRAM 
42 use 5318. 
SEC. 105. Section 119 of the Housing and Community Development 
Act of 1974 is amended by adding at the end thereof the following: 
"(1) A grant may be made under this section only where the 
Secretary determines that there is a strong probability that the non-
Federal investment in the project would not be made without such 
grant and where the Secretary determines that there is a strong 
probability that the grant would not substitute for non-Federal funds 
which are otherwise available to the project. 
"(m) For purposes of carrying out this section, the Secretary may 
reduce or waive the 
requirement, 
as described 
in 
section 
102(a)(5)(B)(ii) and applied to recipients of community development 
grants, that a town or township be closely settled.". 
URBAN HOMESTEADING AMENDMENT 
12 use I706e. 
SEC. 106. Section 810 of the Housing and Community Development 
Act of 1974 is amended— 
(1) by redesignating subsection (g) as subsection (h); and 
(2) by inserting after subsection (f) the following: 
"(g)(1) The Secretary is authorized to reimburse the Administrator 
of Veterans' Affairs, in an amount to be agreed upon by the Secretary 
and the Administrator, for property which the Administrator con-
veys to a unit of general local government. State, or agency for use in 
connection with an urban homesteading program approved by the 
Secretary. 
"(2) The Secretary is authorized to reimburse the Secretary of 
Agriculture, in an amount to be agreed upon by the Secretary and the 
Secretary of Agriculture, for property which the Secretary of Agricul-
ture conveys to a unit of general local government. State, or agency 
for use in connection with an urban homesteading program approved 
by the Secretary.". 
NEIGHBORHOOD SELF-HELP DEVELOPMENT 
SEC. 107. (a) Section 705 of the Housing and Community Develop-
92 Stat. 2121. 
ment Amendments of 1978 is amended by striking out "$15,000,000" 
42 use 8124. 
and inserting in lieu thereof "$13,500,000^'. 
92 Stat. 2120. 
(b) Section 704(d) of such Act is amended by inserting before the 
42 use 8123. 
period at the end thereof the following: ", except that the Secretary 
may make such grants and other forms of assistance available 
without such certification if such assistance is made available for the 
demonstration of innovative means of assisting in neighborhood 
conservation and revitalization, but not more than 10 per centum of 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1105 
assistance made available under this title in any fiscal year shall be 
made available without such certification". 
UVABLE CITIES 
SEC. 108. Section 807 of the Housing and Community Development 
Amendments of 1978 is amended by striking out "$10,000,000" and 
inserting in lieu thereof "$5,000,000'\ 
REVIEW OF EFFECTS OF RENTAL CONVERSIONS 
92 Stat. 2124. 
42 u s e 8146. 
Report to 
Congress. 
42 u s e 5304 
note. 
SEC. 109. (a) Section 104(aX4)(A) of the Housing and Community 
Development Act of 1974 is amended by inserting before the comma 42 USC 5304 
at the end thereof the following: ", including the impact of conversion 
of rental housing to condominium or cooperative ownership on such 
needs". 
(b) Not later than six months after the date of enactment of this 
Act, the Secretary of Housing and Urban Development shall submit a 
report to the Congress concerning the conversion of rental housing to 
condominium or cooperative ownership. Such report shall at least 
include— 
(1) an estimate of the number of such conversions which have 
occurred since 1970; 
(2) a projection of the number of such conversions estimated to 
occur during the period 1980 through 1985; 
(3) an assessment of the impact that such conversions have had 
or are likely to have on the availability of housing for lower 
income persons; 
(4) an assessment of the extent to which such conversions are 
concentrated in certain areas or types of areas of the country; 
and 
(5) an assessment of the factors contributing to the increase in 
such conversions. 
The Secretary may also include in such report recommendations 
concerning alternative means to minimize the adverse impact that 
such conversions may have on lower income persons. 
TITLE II—HOUSING ASSISTANCE PROGRAMS 
Recommendations 
to Congress. 
LOW-INCOME HOUSING 
SEC. 201. (a) The first sentence of section 5(c) of the United States 
Housing Act of 1937 is amended— 
42 use I437c. 
(1) by striking out "and" immediately after "October 1,1977,"; 
and 
(2) by inserting immediately after "on October 1, 1978" the 
following: ", and by $1,140,661,000 on October 1,1979,". 
(b) Section 5(c) of such Act is amended by inserting the following 
after the third sentence: "Of the additional authority authorized by 
the first sentence of this subsection on October 1,1979, not more than 
$195,053,000 is authorized to be approved in appropriation Acts for 
units assisted under this Act other than under section 8 (not less than 42 USC I437f. 
$50,000,000 of which is authorized to be so approved for moderniza-
tion of such units with a preference being given to the modernization 
of substandard vacant units). In no case may the Secretary, with 
respect to the additional authority made available on October 1,1979, 
enter into annual contributions contracts aggregating more than 
$195,053,000 for units assisted under this Act other thsin under 
section 8.". 
59-194 0 — 81 
72 : QL3 
93 STAT. 1106 
PUBLIC LAW 96-153—DEC. 21, 1979 
42 use I437g. 
(c) Section 9(c) of such Act is amended— 
(1) by striking out "and" immediately after "on or after 
October 1,1977,"; and 
(2) by inserting immediately before the period at the end 
thereof the following: ", and not to exceed $741,500,000 on or 
after October 1,1979". 
42 u s e 1437a. 
42 u s e 1437f. 
Effective date. 
42 u s e 1437a 
note. 
42 u s e 1437 
note. 
AMOUNT OF TENANT CONTRIBUTION FOR RENTAL PAYMENTS 
SEC. 202. (a) Section 3(1) of the United States Housing Act of 1937 is 
amended by striking out the third sentence and inserting in lieu 
thereof the following: "The rental for any dwelling unit shall not 
exceed that portion of the resident family's income which the 
Secretary establishes on the basis of the relative level of income of the 
family, but such rental shall not exceed 25 per centum of family 
income in the case of a very low income family or, in the case of other 
families, 30 per centum of such income.". 
(b) Section 8(c)(3) of such Act is amended by striking out the first 
and second sentences and inserting in lieu thereof the following: "The 
amount of the monthly assistance payment with respect to any 
dwelling unit shall be the difference between the maximum monthly 
rent which the contract provides that the owner is to receive for the 
unit and a portion of one-twelfth of the resident family's income 
which the Secretary establishes on the basis of the relative level of 
income of the family and on the basis of such other factors as the 
number of minor children in the household and the extent of medical 
and other unusual expenses incurred by the family. In carrying out 
the previous sentence, the Secretary shall provide that— 
"(A) in the case of a very low income family, the amount of 
such assistance payment shall be the difference between such 
rent and not less than 15 per centum but not more than 25 per 
centum of such family income, taking into consideration such 
relative level of income and such other factors; 
"(B) in the case of a large very low income family or a lower 
income family with exceptional medical or other expenses, as 
determined by the Secretary, the amount of such assistance 
payment shall be the difference between such rent and 15 per 
centum of such family income; 
"(C) in the case of a very large lower-income family, the 
amount of such assistance payment shall be the difference 
between such rent and 20 per centum of such family income; and 
"(D) in the case of other families, the amount of such assistance 
payment shall be the difference between such rent and not less 
than 20 per centum but not more than 30 per centum of such 
family income, taking into consideration such relative level of 
income and such other factors.". 
(c) The amendments made by subsections (a) and Ot)) shall become 
effective on January 1, 1980, except that the amount of the tenant 
contribution required of families whose occupancy of housing units 
assisted under the United States Housing Act of 1937 commenced 
prior to such date shall be determined in accordance with the 
provisions of such Act in effect on December 31,1979, so long as such 
occupancy is continuous thereafter. 
12 u s e 1701s. 
SECTION 101 RENT SUPPLEMENT AND SECTION 236 INCOME DEFINITIONS 
SEC. 203. (a) Section 101 of the Housing and Urban Development 
Act of 1965 is amended— 
;
•
"
•
, J.0J ^.gf; 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1107 
"Qualified 
tenant." 
42 u s e 1437f. 
(1) by striking out the first sentence of subsection (c) and 
inserting in lieu thereof the following new sentence: "As used in 
this section, the term— 
"(1) 'qualified tenant' means any individual or family having 
an income which would qualify such individual or family for 
assistance under section 8 of the United States Housing Act of 
1937, except that such term shall also include any individual or 
family who was receiving assistance under this section on the 
day preceding the date of the enactment of the Housing and 
Community Development Amendments of 1979, so long as such 
individual or family continues to meet the conditions for such 
assistance which were in effect on such day; and 
"(2) 'income' means income as determined under section 8 of "Income." 
the United States Housing Act of 1937."; 
(2) by striking out subsection (d) and inserting in lieu thereof 
the following: 
"(d) The amount of the annual payment with respect to any 
dwelling unit shall not exceed the amount by which the fair market 
rental for such unit exceeds one-fourth of the tenant's income as 
determined by the Secretary pursuant to procedures and regulations 
established by the Secretary. Notwithstanding the preceding sen-
tence, the amount of the payment made under any contract amended 
pursuant to subsection (1) with respect to any dwelling unit assisted 
under this section shall be determined in the same manner as it 
would be determined under section 8 of the United States Housing 
Act of 1937 if the tenant on whose behalf such payment is made were 
receiving assistance with respect to such unit under section 8 of such 
Act"; 
(3) by striking out subsection (e)(1)(B) and inserting in lieu 
thereof the following: 
"(B) whether the individual or family was occupying 
substandard housing or was involuntarily displaced at the 
time it was seeking assistance under this section."; and 
(4) by adding the following new subsections at the end thereof: 
"(k) In making assistance available under this section, the Secre-
tary shall give priority to individuals or families who are occupying 
substandard housing or are involuntarily displaced at the time they 
are seeking housing assistance under this section. 
"(1) The Secretary may offer to amend each contract entered into 
pursuant to this section for the purpose of making such contract 
contain such terms and conditions as the Secretary deems necessary 
to implement the amendments made to this section by the Housing 
and Community Development Amendments of 1979. Notwithstand-
ing the provisions of subsection (a) and any other provision of law, the 
Secretary may utilize additional authority under section 5(c) of the 
United States Housing Act of 1937 made available by appropriation Ante, p. 1105 
Acts on or after October 1, 1979, in order to carry out any changes in 
contracts as a result of the preceding sentence to the extent necessary 
to supplement assistance authority available for that purpose under 
this section.". 
(b) Section 236(m) of the National Housing Act is amended to read 
as follows: 
"(m) For the purpose of this section, the term 'income' means 
income as determined under section 8 of the United States Housing 
Act of 1937.". 
(c) The amendments made by subsections (a) and (b) shall become 
effective on the date of enactment of this Act. The maximum tenant 
contribution applicable to any family whose occupancy of housing 
HI L
;
{
-
"Income." 
12 u s e 1715Z-I. 
Effective date. 
12 u s e 1701s 
note. 
93 STAT. 1108 
PUBLIC LAW 96-153—DEC. 21, 1979 
12 u s e 1701s, 
1715Z-1. 
assisted under section 101 of the Housing and Urban Development 
Act of 1965 or section 236 of the National Housing Act commenced 
prior to such date shall not exceed the maximum tenant contribution 
which would have been applicable under such section, as it was in 
effect on the day preceding the date of enactment of this Act, so long 
as such occupancy is continuous thereafter. 
42 u s e 1439. 
42 u s e 1437 
note. 
SECTION 213 ALLOCATION REQUIREMENTS 
SEC. 204. (a) Section 213(d)(1) of the Housing and Community 
Development Act of 1974 is amended by inserting after "In allocating 
financial assistance" in the first sentence the following: "(other than 
assistance approved in appropriation Acts for use on and after 
October 1, 1979, under the United States Housing Act of 1937 for the 
purpose of modernization of low-income housing projects)". 
(b) Section 213(d)(1) of such Act is amended by inserting before the 
last sentence the following: "Any amounts allocated to a State or to 
areas or communities within a State which are not likely to be 
utilized within a fiscal year shall not be reallocated for use in another 
State unless the Secretary determines that other areas or communi-
ties within the same State cannot utilize the amounts in accordance 
with the appropriate housing assistance plans within that fiscal 
year.". 
92 Stat. 2084. 
12 use 
1715z-la. 
12 u s e 1715Z-1. 
OPERATING ASSISTANCE FOR TROUBLED MULTIFAMILY HOUSING 
PROJECTS 
SEC. 205. (a) The first sentence of section 201(h) of the Housing and 
Community Development Amendments of 1978 is amended by insert-
ing immediately before the period at the end thereof the following: 
", and not to exceed $82,000,000 for the fiscal year 1980". 
(b) Section 236(f)(3)(B) of the National Housing Act is amended— 
(1) by inserting immediately after "October 1, 1978," in the 
first sentence the following: "or credited to such fund prior to 
October 1,1978, but remaining unobligated on October 31,1978,"; 
and 
(2) by striking out "September 30, 1979" in the third sentence 
and inserting in lieu thereof "September 30,1980". 
TENANT SELECTION CRITERIA 
SEC. 206. (a) Section 6(c)(4)(A) of the United States Housing Act of 
42 use 1437d. 
1937 is amended by inserting after "tenant selection criteria" the 
following: "which gives preference to families which occupy substan-
dard housing or are involuntarily displaced at the time they are 
seeking assistance under this Act and which is". 
42 use I437f. 
(b)(1) Section 8(d)(lXA) of such Act is amended by inserting before 
the semicolon at the end thereof the following: ", except that the 
tenant selection criteria used by the owner shall give preference to 
families which occupy substandard housing or are involuntarily 
displaced at the time they are seeking assistance under this section". 
(2) Section 8(e)(2) of such Act is amended by inserting before the 
period at the end of the first sentence the following: ", except that the 
tenant selection criteria shall give preference to families which 
occupy substandard housing or are involuntarily displaced at the 
time they are seeking housing assistance under this section". 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1109 
DISTRIBUTION OF SECTION 9 OPERATING SUBSIDIES 
SEC. 207. Section 9 of the United States Housing Act of 1937 is 42 USC I437g. 
amended by adding the following new subsection at the end thereof: 
"(d) If, in any fiscal year beginning after September 30, 1979, any 
fujids which have been appropriated for such year remain after 
applying the provisions of the second and fourth sentences of subsec-
tion (a)(1), the Secretary shall distribute such funds to low-income 
housing projects which incurred excessive costs which were beyond 
their control and the full extent of which was not taken into account 
in the original distribution of funds for such fiscal year.". 
DISPLACED TENANTS IN A HUD-OWNED PROJECT 
SEC. 208. Section 203(d)(2) of the Housing and Community Develop-
ment Amendments of 1978 is amended by striking out "The Secretary 
shall seek to assure the maximum opportunity for any such tenant—" 
and inserting in lieu thereof the following: "The Secretary shall 
assure for any such tenant (who continues to meet applicable qualifi-
cation standards) the right—". 
92 Stat. 2088. 
12USC1701Z-11. 
ENERGY CONSERVATION 
SEC. 209. The United States Housing Act of 1937 is amended by 
adding at the end thereof the following new section: 
ENERGY CONSERVATION 
"SEC. 13. (a) In utilizing contract authority which is provided by 42 USC 1437k. 
section 5(c) and has been approved in appropriation Acts for use in 
the modernization of low-income housing projects (other than proj-
ects assisted under section 8) on or after October 1, 1979, the 
Secretary shall, to the maximum extent practicable, also take into 
consideration projects which will be modernized to a substantial 
extent with weatherization materials as defined in section 412(9) of 
the Energy Conservation in Existing Buildings Act of 1976. 
42 USC 6862. 
"(b) The Secretary shall, to the maximum extent practicable, 
require that newly constructed and substantially rehabilitated proj-
ects assisted under this Act with authority provided on or after 
October 1, 1979, shall be equipped with heating and cooling systems 
selected on the basis of criteria which include a life-cycle cost analysis 
of such systems.". 
VERIFICATION OF INCOME 
SEC. 210. Section 8 of the United States Housing Act of 1937 is 
amended by adding at the end thereof the following new subsection: 
"(k) The Secretary shall establish procedures which are appropri-
ate and necessary to assure that income data provided to public 
housing agencies and owners by families applying for or receiving 
assistance under this section is complete and accurate. In establish-
ing such procedures, the Secretary shall randomly, regularly, and 
periodically select a sample of families to authorize the Secretary to 
obtain information on these families for the purpose of income 
verification, or to allow those families to provide such information 
themselves. Such information may include, but is not limited to, data 
concerning unemployment compensation and Federal income tax-
ation and data relating to benefits made available under the Social 
Security Act, the Food Stamp Act of 1977, or title 38, United States 
42 USC 1437f. 
42 USC 1305. 
7 USC 2011 note. 
93 STAT. 1110 
PUBLIC LAW 96-153—DEC. 21, 1979 
Code. Any such information received pursuant to this subsection 
shall remain confidential and shall be used only for the purpose of 
verifying incomes in order to determine eligibility of families for 
benefits (and the amount of such benefits, if any) under this section.". 
42 u s e 1437g. 
Ante, p. 1105, 
1109. 
42 u s e 1437f. 
92 Stat. 2084. 
1
2 use 
1715z-la. 
PRESERVATION OF LOW-INCOME CHARACTER OF ASSISTED HOUSING 
SEC. 211. (a) Section 9(a) of the United States Housing Act of 1937 is 
amended— 
(1) by inserting 'XD" after "(a)"; 
(2) by striking out "(D" and "(2)" in the second sentence and 
inserting in lieu thereof "(A)" and "(B)"; 
(3) by inserting the following before the period at the end of the 
third sentence: ", and such contract shall provide that no 
disposition of the low-income housing project, with respect to 
which the contract is entered into, shall occur during and for ten 
years after the period when contributions were made pursuant to 
such contract unless approved by the Secretary"; and 
(4) by adding the following new paragraph at the end thereof: 
"(2) The Secretary may not make assistance available under this 
section for any low-income housing project unless such project is 
being assisted by an annual contributions contract authorized by 
section 5(c) but not subject to section 8, except that after the duration 
of any such annual contributions contract with respect to a low-
income housing project, the Secretary may provide assistance under 
this section with respect to such project as long as the low-income 
nature of such project is maintained.". 
(b) The first sentence of section 8(e)(1) of such Act is amended by 
striking out "one month" and inserting in lieu thereof "two hundred 
and forty months". 
(c) Section 201(d)(1) of the Housing and Community Development 
Amendments of 1978 is amended by inserting the following before the 
semicolon at the end thereof: ", and the owner has agreed to maintain 
the low- and moderate-income character of such project for a period 
at least equal to the remaining term of the project mortgage". 
42 u s e 1437f 
note. 
31 u s e 11. 
RENT STUDIES 
SEC. 212. (a) The Secretary of Housing and Urban Development 
shall conduct a study of the feasibility and financial desirability of 
requiring minimum rent payments from tenants in low-income 
housing assisted under the United States Housing Act of 1937. The 
study shall examine (1) the extent to which tenants in such housing 
are not required to or do not pay rent, (2) the incentives for greater 
tenant care of such housing which minimum rents may create, (3) the 
administrative costs of assessing and collecting minimum rents, and 
(4) for each of the five fiscal years beginning on October 1,1980, and 
ending September 30, 1984, the reductions in appropriations for the 
payment of annual contributions for assisted housing and for pay-
ments for the operation of low-income housing projects which several 
alternative specifications of minimum rent requirements would 
allow. The Secretary shall submit a report to the Congress containing 
the findings and conclusions of such study not later than ten days 
after the Budget for fiscal year 1981 is transmitted pursuant to 
section 201 of the Budget and Accounting Act, 1921. 
(b) The Secretary of Housing and Urban Development shall con-
duct a study to provide detailed comparisons between the rents paid 
by tenants occupying low-income housing assisted under the United 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1111 
States Housing Act of 1937, and the rents paid by tenants at the same 
income levels who are not in assisted housing. The comparisons shall 
be made for differing regions, income levels and family size, and shall 
include data on utility costs paid by tenants. Data on tenants not in 
assisted housing shall be further subdivided in accordance with 
various indicators of housing quality. The Secretary shall transmit a 
report on such study to the Congress not later than March 1, 1980. 
SECTION 235 AMENDMENTS 
SEC. 213. (a) Section 235(a)(1) of the National Housing Act is 12 USC I715z. 
amended by adding the following new sentence at the end thereof: 
"In making such assistance available, the Secretary shall give prefer-
ence to low-income families who, without such assistance, would be 
likely to be involuntarily displaced (including those who would be 
- » ^ ' 
likely to be displaced from rental units which are to be converted into 
a condominium project or a cooperative project). Such assistance may 
include the acquisition of a condominium or a membership in a 
cooperative association.". 
(b) Section 235(i)(3)(A) of such Act is amended by striking out ", if 
the mortgagor qualifies" in the first proviso and all that follows 
' 
* ' 
through "public housing". 
(c)(1) Section 235 of such Act is amended by adding at the end 
thereof the following new subsection: 
"(o) The Secretary may insure a mortgage under this section 
involving a principal obligation which exceeds, by not more than 20 
per centum, the maximum limits specified under subsection (b)(2) or 
(i)(3) of this section if the mortgage relates to a dwelling in an urban 
neighborhood where the Secretary determines that a community 
sponsored program of concentrated redevelopment or revitalization 
is being undertaken and the Secretary determines that such action is 
necessary to enable eligible families residing in the area who occupy 
substandard housing or are being involuntarily displaced to remain 
in the area in decent, safe, and sanitary housing.". 
(2) Section 235(c)(2) of such Act is amended by inserting after "1 per 
centum per annum" the following: "(4 per centum per annum in the 
case of a mortgage described in subsection (o))". 
TITLE III—PROGRAM AMENDMENTS AND EXTENSIONS 
EXTENSION OF FEDERAL HOUSING ADMINISTRATION MORTGAGE 
INSURANCE PROGRAMS 
SEC. 301. (a) Section 2(a) of the National Housing Act is amended by 12 USC 1703. 
striking out "December 1, 1979" in the first sentence and inserting in 
lieu thereof "October 1,1980". 
(b) Section 217 of such Act is amended by striking out "November 12 USC 1715h. 
30,1979" and inserting in lieu thereof "September 30,1980". 
(c) Section 221(f) of such Act is amended by striking out "November 12 USC 1715/. 
30, 1979" in the fifth sentence and inserting in lieu thereof "Septem-
ber 30,1980". 
(d) Section 235(m) of such Act is amended by striking out "Novem- 12 USC I7l5z. 
ber 30, 1979" and inserting in lieu thereof "September 30, 1980". 
(e) Section 236(n) of such Act is amended by striking out "Novem- 12 USC I7l5z-l. 
ber 30, 1979" and inserting in lieu thereof "September 30, 1980". 
(f) Section 244(d) of such Act is amended— 
12 USC 1715z-9. 
(1) by striking out "November 30, 1979" in the first sentence 
and inserting in lieu thereof "September 30,1980"; and 
93 STAT. 1112 
PUBLIC LAW 96-153—DEC. 21, 1979 
12USC1715Z-10. 
12 u s e 1748h-l. 
12 u s e 1748h-2. 
12 u s e 1749bb. 
12 u s e 1749aaa. 
(2) by striking out "December 1, 1979" in the second sentence 
and inserting in lieu thereof "October 1,1980". 
(g) Section 245 of such Act is amended by striking out "November 
30, 1979" where it appears and inserting in lieu thereof "September 
30,1980". 
(h) Section 809(f) of such Act is amended by striking out "November 
30, 1979" in the second sentence and inserting in lieu thereof 
"September 30,1980". 
(i) Section 810(k) of such Act is amended by striking out "November 
30, 1979" in the second sentence and inserting in lieu thereof 
"September 30,1980". 
(j) Section 1002(a) of such Act is amended by striking out "Novem-
ber 30, 1979" in the second sentence and inserting in lieu thereof 
"September 30,1980". 
(k) Section 1101(a) of such Act is amended by striking out "Novem-
ber 30, 1979" in the second sentence and inserting in lieu thereof 
"September 30,1980". 
EXTENSION OF FLEXIBLE INTEREST RATE AUTHORITY 
12 use 1709-1. 
SEC. 302. Section 3(a) of Public Law 90-301 is amended by striking 
out "December 1, 1979" and inserting in lieu thereof "October 1, 
1980". 
12 u s e 1723e 
note. 
EXTENSION OF EMERGENCY HOME PURCHASE ASSISTANCE ACT OF 1974 
SEC. 303. Section 3(b) of the Emergency Home Purchase Assistance 
Act of 1974 is amended by striking out "December 1, 1979" and 
inserting in lieu thereof "October 1,1980". 
RESEARCH AUTHORIZATIONS 
SEC. 304. The second sentence of section 501 of the Housing and 
12 use 1701Z-1. Urban Development Act of 1970 is amended bv striking out "and not 
to exceed $62,000,000 for the fiscal year 1979 ' and inserting in lieu 
thereof "not to exceed $62,000,000 for the fiscal year 1979, and not to 
exceed $50,300,000 for the fiscal year 1980". 
FEDERAL HOUSING ADMINISTRATION GENERAL INSURANCE FUND 
12 use 1735c. 
SEC. 305. Section 519(f) of the National Housing Act is amended by 
inserting before the period at the end thereof the following: ", which 
shall be increased by not to exceed $93,000,000 on October 1, 1979". 
HOUSING FOR THE ELDERLY OR HANDICAPPED 
12 use 170lq. 
SEC. 306. (a) Section 202(a)(4)(B)(i) of the Housing Act of 1959 is 
amended by striking out "and to $3,300,000,000 on October 1, 1978" 
and inserting in lieu thereof "to $3,300,000,000 on October 1,1978, to 
$3,827,500,000 on October 1, 1979, to $4,777,500,000 on October 1, 
1980, and to $5,752,500,000 on October 1,1981". 
(b) Section 202(a) of such Act is amended by adding at the end 
thereof the following new paragraphs: 
"(6) In reviewing applications for loans under this section, the 
Secretary may consider the extent to which such loans— 
"(A) will assist in stabilizing, conserving, and revitalizing 
neighborhoods and communities; 
"(B) will assist in providing housing for elderly and handi-
capped families in neighborhoods and communities in which 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1113 
they are experiencing significant displacement due to public or 
private investment; or 
"(C) will assist in the substantial rehabilitation, in an economi-
cal manner, of structures having architectural, historical, or 
cultural significance. 
"(7) The Secretary may make available appropriate technical and 
training assistance to assure that applicants having limited re-
sources, particularly minority applicants, are able to participate 
more fully in the program carried out under this section.". 
(c)(1) Section 202(d)(8)(A) of such Act is amended by striking out "or 12 USC I70lq. 
infirmaries or other inpatient or" and inserting in lieu thereof "adult 
day health facilities, or other". 
(2) Section 202(f) of such Act is amended by inserting "(including 
adult day health services)" after "health". 
(d) Section 202(g) of such Act is amended by adding the following 
new sentence at the end thereof: "At the time of settlement on 
permanent financing with respect to a project under this section, the 
Secretary shall make an appropriate adjustment in the amount of 
any assistance to be provided under a contract for annual contribu-
tions pursuant to section 8 of the United States Housing Act of 1937 
in order to reflect fully any difference between the interest rate 
which will actually be charged in connection with such permanent 
financing and the interest rate which was in effect at the time of the 
reservation of assistance in connection with the project.". 
(e) Not later than six months after the date of enactment of this 
Act, the Secretary of Housing and Urban Development shall transmit 
a report to the Congress on the housing needs of the elderly and 
handicapped in rural areas. Such report shall at least include— 
(1) an assessment of the operations of the present programs in 
rural areas available to the elderly and handicapped; 
(2) an assessment of the housing needs of the elderly and 
handicapped living in rural areas; and 
(3) an examination of the various alternatives available to 
meet the housing needs of the elderly and handicapped in rural 
areas. 
(f) Not later than six months after the date of enactment of this Act, 
the Secretary of Housing and Urban Development shall transmit a 
report to the Congress containing recommendations on means to 
reduce the costs of the program carried out under section 202 of the 
Housing Act of 1959 without— 
(1) unduly burdening sponsors of programs and projects under 
this section; or 
(2) adversely affecting the ability of the program under this 
section to meet the housing needs of elderly and handicapped 
families. 
Report to 
Congress. 
12 USC ITOlq 
note. 
Report to 
Congress. 
12 USC 1701q 
note. 
NEIGHBORHOOD REINVESTMENT CORPORATION 
SEC. 307. Section 608(a) of the Housing and Community Develop-
ment Amendments of 1978 is amended by inserting ", and not to 92 Stat. 2119. 
exceed $12,000,000 for fiscal year 1980" after "1979". 
^2 USC 8107. 
EXEMPTION FROM STATE USURY LAWS 
SEC. 308. Title V of the National Housing Act is amended by adding 
the following new section at the end thereof: 
93 STAT. 1114 
PUBLIC LAW 96-153—DEC. 21, 1979 
"EXEMPTION FROM STATE USURY LAWS 
12 use i735f-7. 
"SEC. 529. (a) The provisions of the constitution of any State 
expressly limiting the rate or amount of interest, discount points, or 
other charges which may be charged, taken, received, or reserved by 
lenders and the provisions of any State law expressly limiting the 
rate or amount of interest, discount points, or other charges which 
may be charged, taken, received, or reserved shall not apply to any 
loan, mortgage, or advance which is insured under title I or II of this 
12 use 1702, 
Act. 
'^' 
"(b) The provisions of subsection (a) shall apply to loans, mortgages, 
or advances made or executed in any State until the effective date 
(after the date of enactment of this section) of a provision of law of 
that State limiting the rate or amount of interest, discount points, or 
other charges on any such loan, mortgage, or advance.". 
STUDIES OF MORTGAGE INSURANCE PREMIUMS AND ALTERNATIVES TO 
STATUTORY MORTGAGE AMOUNTS 
12 use 1709 
SEC. 309. (a) The Secretary of Housing and Urban Development 
^°^- 
(hereinafter referred to as the "Secretary") shall conduct a study of 
the relative risks of loss which exist with respect to the various 
classes of mortgages which may be insured under sections 203(b) and 
Infra; Ante, p. 
213 of the National Housing Act. Such study shall be conducted for 
1108. 
the purpose of making recommendations on the advisability of 
reducing, in accordance with sound actuarial and accounting prac-
tices, some or all of the mortgage insurance premiums required for 
such classes of mortgages. The Secretary shall transmit such recom-
mendations to the Congress within eighteen months from the date of 
the enactment of this Act. 
(b) The Secretary shall conduct a study of alternatives to the 
present system of fixed statutory maximum amounts for mortgages 
insured by the Department of Housing and Urban Development 
under titles I and II of the National Housing Act. Such study shall 
include an examination of possible alternatives, including but not 
limited to flexible mortgage ceilings, prototype cost limits, ceilings 
based on regional housing costs, sales prices of homes, and construc-
tion costs. The Secretary shall report to the Congress on the results of 
such study, together with recommendations for legislation, no later 
than March 1,1980. 
MORTGAGE INSURANCE FOR EXISTING DWELLINGS WITH WARRANTY 
PLANS 
12 use 1709. 
SEC. 310. Section 203(b)(2) of the National Housing Act is amended 
by striking out "the dwelling was completed more than one year prior 
to the application for mortgage insurance, or the dwelling was 
approved for guaranty, insurance, or a direct loan under chapter 37 of 
title 38, United States Code, prior to the beginning of construction" in 
the third sentence and by inserting in lieu thereof the following: "(i) 
the dwelling was completed more than one year prior to the applica-
tion for mortgage insurance, or (ii) the dwelling was approved for 
guaranty, insurance, or a direct loan under chapter 37 of title 38, 
38 use 1801 et 
United States Code, prior to the beginning of construction, or (iii) the 
*^9- 
dwelling is covered by a consumer protection or warranty plan 
acceptable to the Secretary and satisfies all requirements which 
would have been applicable if such dwelling had been approved for 
mortgage insurance prior to the beginning of construction". 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1115 
MODIFICATION OF GRADUATED PAYMENT MORTGAGE PROGRAM 
Homeownership 
Opportunity Act 
of 1979. 
12 u s e 1701 
note. 
12USC1715Z-10. 
SEC. 311. (a) This section may be cited as the "Homeownership 
Opportunity Act of 1979". 
(b) Section 245 of the National Housing Act is amended— 
(1) by inserting "(a)" after "SEC. 245."; 
(2) by inserting after "title" in the second sentence the follow-
ing: ", except as provided in subsection (b) of this section,"; 
(3) by striking out "section" after "pursuant to this" and 
inserting in lieu thereof "subsection"; 
(4) by striking out the last sentence; and 
(5) by adding at the end thereof the following: 
"(b) Notwithstanding the provisions of subsection (a), the Secretary 
may insure under any provision of this title a mortgage or loan which 
meets the requirements of the first sentence of subsection (a) and 
which has provisions for varying rates of amortization if the Secre-
tary determines— 
"(1) the mortgagor could not reasonably afford to purchase the 
dwelling unit by means of a mortgage insured under subsection 
(a) or any other mortgage insurance program under this title; 
"(2) the principal obligation of the mortgage or loan initially 
does not exceed the percentage of the initial appraised value of 
the property specified in section 203(b) of this title as of the date Ante, p. 1114 
the mortgage or loan is accepted for insurance; 
"(3) the principal obligation of the mortgage or loan thereafter 
(including all interest to be deferred and added to principal) will 
not at any time be scheduled to exceed 97 per centum, or, if the 
mortgagor is a veteran, such higher percentage as is provided 
under section 203(b)(2) for veterans, of the projected value of the 
property; and 
"(4) the principal obligation of the mortgage thereafter will not 
exceed 113 per centum of the initial appraised value of the 
property. 
Mortgage insurance under this subsection shall be limited to mort-
gages executed by mortgagors who, as determined by the Secretary, 
have not owned dwelling units within the preceding three years. For 
the purpose of this subsection, the projected value of the property 
shall be calculated by the Secretary by increasing the initial ap-
praised value of the property at a rate not in excess of 2 ¥2 per centum 
per annum. The number of mortgages which are insured in accord-
ance with this subsection in any fiscal year may not exceed (A) that 
number of mortgages the aggregate initial principal obligation of 
which equals 10 per centum of the aggregate amount of the initial 
principal obligation of all mortgages secured by properties improved 
by one- to four-family residences which are insured under this title 
during the preceding fiscal year, or (B) 50,000 mortgages, whichever is 
greater. 
"(c) Any mortgage or loan insured pursuant to this section which 
contains or sets forth any graduated mortgage provisions (including 
but not limited to provisions for adding deferred interest to principal) 
which are authorized under this section and applicable regulations, 
or which have been insured on the basis of their being so authorized, 
shall not be subject to any State constitution, statute, court decree, 
common law, or rule or public policy (1) limiting the amount of 
interest which may be charged, taken, received, or reserved, or the 
manner of calculating such interest (including but not limited to 
prohibitions against the charging of interest on interest), if such 
constitution, statute, court decree, common law, or rule would not 
93 STAT. 1116 
PUBLIC LAW 96-153—DEC. 21, 1979 
apply to the mortgage or loan in the absence of such graduated 
payment mortgage provisions, or (2) requiring a minimum amortiza-
tion of principal under the mortgage or loan.". 
12 u s e 1709. 
12 u s e 1715k. 
12 u s e 1715m, 
1715y. 
FEDERAL HOUSING ADMINISTRATION MORTGAGE LIMITS 
SEC. 312. (a) Section 203(b)(2) of the National Housing Act is 
amended by striking out everything through "or $75,000 in the case of 
a four-family residence;" and inserting in lieu thereof the following: 
"(2) Involve a principal obligation (including such initial serv-
ice charges, appraisal, inspection, and other fees as the Secretary 
shall approve) in an amount not to exceed $67,500 in the case of 
property upon which there is located a dwelling designed princi-
pally for a one-family residence; or $76,000 in the case of a two-
family residence (whether or not such one- or two-family resi-
dence may be intended to be rented temporarily for school 
purposes); or $92,000 in the case of a three-family residence, or 
$107,000 in the case of a four-family residence;". 
(b) Section 220(d)(3)(A)(i) of such Act is amended— 
(1) by striking out "$60,000" and inserting in lieu thereof 
"$67,500"; 
(2) by striking out "$65,000" the first time it appears and 
inserting in lieu thereof "$76,000"; 
(3) by striking out "$65,000" the second time it appears and 
inserting in lieu thereof "$92,000"; 
(4) by striking out "$75,000" and inserting in lieu thereof 
"$107,000"; and 
(5) by striking out "$7,700" and inserting in lieu thereof 
"$8,250". 
(c) Section 222(b)(2) and section 234(c) of such Act are amended by 
striking out "$60,000" in each such section and inserting in lieu 
thereof "$67,500". 
LOANS FOR MOBILE HOMES AND LOTS 
12 use 1703. 
SEC. 313. (a) Section 2(b) of the National Housing Act is amended— 
(1) by striking out "$16,000 ($24,000 in the case of a mobile 
home composed of two or more modules" in the first sentence and 
inserting in lieu thereof "$18,000 ($27,000 in the case of a mobile 
home containing two or more modules"; 
(2) by striking out subparagraph (A) of the second paragraph 
and inserting in lieu thereof the following: 
"(A) involve such an amount not exceeding $24,000 ($33,000 in 
the case of a mobile home composed of two or more modples); 
and"; 
(3) by striking out "fifteen years and thirty-two days (twenty-
three" in subparagraph (B) of the second paragraph and insert-
ing in lieu thereof "twenty years and thirty-two days (twenty-
five"; 
(4) by striking out subparagraph (A) of the third paragraph and 
inserting in lieu thereof the following: 
"(A) involve such an amount not exceeding $27,500 ($36,500 in 
the case of a mobile home composed of two or more modules); 
and"; 
(5) by striking out "fifteen years and thirty-two days (twenty-
three" in subparagraph (B) of the third paragraph and inserting 
in lieu thereof "twenty years and thirty-two days (twenty-five"; 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1117 
(6) by striking out "$5,000 in the case of an undeveloped lot, or 
(ii) $7,500," in subparagraph (A) of the fourth paragraph and 
inserting in lieu thereof "$6,250 in the case of an undeveloped lot, 
or (ii) $9,375"; and 
(7) by striking out "ten years and thirty-two days" in subpara-
graph (B) of the fourth paragraph and inserting in lieu thereof 
"fifteen years and thirty-two days". 
(b) Section 207(c)(3) of such Act is amended by striking out "$3,900" 
and inserting in lieu thereof "$8,000". 
12 u s e 1713. 
HIGH-COST AREA MAXIMUM MORTGAGE AMOUNTS 
SEC. 314. The National Housing Act is amended by striking out "by 
not to exceed 50 per centum in any geographical area where he finds 
that cost levels so require" where it appears in sections 207(c)(3), 
218(b)(2), 220(d)(3)(B)(iii), 221(d)(3)(ii), 221(d)(4)(ii), 231(c)(2), and 
234(eX3) and inserting in lieu thereof in each such section "by not to 
exceed 75 per centum in any geographical area where he finds that 
cost levels so require, except that, where the Secretary determines it 
necessary on a project by project basis, the foregoing dollar amount 
limitations contained in this paragraph may be exceeded by not to 
exceed 90 per centum in such an area". 
12 
use 
1713, 
1715e, 1715k, 
1715/, 1715v, 
1715y. 
COMBINATION FINANCING 
SEC. 315. Section 242(d) of the National Housing Act is amended by 
adding the following new paragraph at the end thereof: 
"(5) The Secretary shall not insure any mortgage or approve any 
modification of an existing mortgage insured pursuant to this section 
or section 223(f) if such insurance or modification is to be made in 
connection with a guarantee, as authorized pursuant to section 306, 
of a trust certificate or other security which is exempt from Federal 
taxation or which is to be used to collateralize obligations which are 
so exempt, except that the Secretary shall not refuse to insure such a 
mortgage or approve such a modification solely on the basis that such 
insurance or modification is to be made in connection with a guaran-
tee, as authorized pursuant to section 306, of a trust certificate or 
other security which is exempt from Federal taxation or which is to 
be used to collateralize obligations which are so exempt i
f
— 
"(A) a written application for such insurance or modification 
submitted at the express direction of the hospital has been 
submitted to the appropriate office of the Department of Health, 
Education, and Welfare prior to March 29,1979; or 
"(B) in the case of a nonprofit mortgagor which is seeking 
refinancing or modification of an existing mortgage insured 
pursuant to this section or section 223(f), the mortgagor (i) had 
engaged an investment banker for the purpose of obtaining such 
refinancing or modification, or had undertaken or arranged for 
the undertaking of a market or feasibility study with respect to 
the advisability of obtaining such refinancing or modification, 
and had made written notification of its interest in such refi-
nancing or modification to the Department of Health, Education, 
and Welfare or the Department of Housing and Urban Develop-
ment prior to June 7, 1979; and (ii) receives from the programs 
established under titles XVIII and XIX of the Social Security Act 
a percentage of its total revenue which is greater than 125 per 
centum of the national average for hospitals which derive reve-
nue from such titles.". 
12 u s e 1715Z-7. 
12 u s e 1715n. 
12 u s e 1721. 
42 u s e 1395, 
1396. 
93 STAT. 1118 
PUBLIC LAW 96-153—DEC. 21, 1979 
FEDERAL HOME LOAN MORTGAGE CORPORATION AMENDMENTS 
SEC. 316. (a) Section 306 of the Federal Home Loan Mortgage 
12 use 1455. 
Corporation Act is amended by adding at the end thereof the 
following: 
"(e)(1) Any person, trust, or organization created pursuant to or 
existing under the laws of the United States or any State shall be 
authorized to purchase, hold, and invest in mortgages, obligations, or 
other securities which are or have been sold by the Corporation 
12 use 1454. 
pursuant to this section or pursuant to section 305 of this title to the 
same extent that such person, trust, or organization is authorized 
under any applicable law to purchase, hold, or invest in obligations 
issued by or guaranteed as to principal and interest by the United 
States or any agency or instrumentality thereof. Where State law 
limits the purchase, holding, or investment in obligations issued by 
the United States by such a person, trust, or organization, such 
Corporation mortgages, obligations, and other securities shall be 
considered to be obligations issued by the United States for purposes 
of the limitation. 
Exceptions. 
"(2) The provisions of paragraph (1) shall not apply with respect to 
a particular person, trust, or organization or class thereof in any 
State which, after the date of enactment of this subsection, enacts a 
statute which specifically names the Corporation and either prohibits 
or provides for a more limited authority to purchase, hold, or invest 
in such securities by such person, trust, or organization or class 
thereof than is provided in paragraph (1). The enactment by any 
State of any statute of the type described in the preceding sentence 
shall not affect the validity of any contractual commitment to 
purchase, hold, or invest which was made prior thereto. 
"(3) Any authority granted by paragraph (1) and not granted by any 
other Federal statute shall expire as of the end of June 30,1985. Such 
expiration shall not affect the validity of any contractual commit-
ment to purchase, hold, or invest which was made prior thereto 
pursuant to paragraph (1), and shall not affect the validity of any 
contractual commitment or other action to purchase, hold, or invest 
pursuant to any other authorization.". 
12 use 1452. 
(b) Section 303 of such Act is amended by adding at the end thereof 
the following: 
"(f) All mortgages, obligations, or other securities which are or 
have been sold by the Corporation pursuant to section 305 or section 
306 of this title shall be lawful investments, and may be accepted as 
security for all fiduciary, trust, and public funds, the investment or 
deposits of which shall be under the authority and control of the 
United States or any officers thereof". 
12 use 1451. 
(c) Section 302(h) of such Act is amended by adding at the end 
thereof the following sentence: "Such term shall also include a 
mortgage, lien, or other security interest on the stock or membership 
certificate issued to a tenant-stockholder or resident-member by a 
cooperative housing corporation, as defined in section 216 of the 
26 use 216. 
Internal Revenue Code of 1954, and on the proprietary lease, occu-
pancy agreement, or right of tenancy in the dwelling unit of the 
tenant-stockholder or resident-member in such cooperative housing 
corporation.". 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1119 
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MAXIMUM 
MORTGAGE AMOUNT 
SEC. 317. The second sentence of section 302(b)(1) of the National 
Housing Act is amended to read as follows: "Notwithstanding the 
provisions of clause (3) of the preceding sentence, the Association may 
purchase a mortgage under section 305 with an original principal 
obligation which exceeds the otherwise applicable maximum amount 
per dwelling unit if (1) the mortgage is insured under section 207(c)(3), 
213(b)(2), 220(d)(3)(B)(iii), 221(d)(3)(ii), 221(d)(4)(ii), 231(c)(2), 234(e)(3), or 
236, and (2) at least 20 per centum of the units covered by such 
mortgage are assisted under contracts authorized by section 8 of the 
United States Housing Act of 1937.". 
SECTION 203(i) PROGRAM 
12 
use 
1717. 
12 
use 
1720. 
12 
use 
1713, 
1715e, 1715k, 
1715/, 1715v, 
1715y, 1715Z-1. 
42 
use 
1437f. 
SEC 318. Section 203(i) of the National Housing Act is amended— 
12 USC 1709. 
(1) by striking out "adjacent to a public highway" in the last 
proviso and inserting in lieu thereof "adjacent to an all-weather 
public road"; and 
(2) by striking out "five" in the last proviso and inserting in 
lieu thereof "two and one-half. 
. « 
MATURITIES FOR SUPPLEMENTAL LOANS 
SEC. 319. Section 241(b)(2) of the National Housing Act is amended 12 use 17l5z-6. 
by striking out the phrase "but not to exceed the remaining term of 
the mortgage". 
AMENDMENT TO THE NATIONAL MOBILE HOME CONSTRUCTION AND 
SAFETY STANDARDS ACT OF 1974 
SEC. 320. Section 620 of the National Mobile Home Construction 
and Safety Standards Act of 1974 is amended by inserting after 
42 use 5419. 
"conducting such inspections," the following: "and the Secretary may 
use any fees so collected to pay expenses incurred in connection with 
such inspections,". 
O W N E R S H I P OF MOBILE HOME SITES 
SEC. 321. Not later than March 31, 1980, the Secretary of Housing 
and Urban Development shall transmit to the Congress a report 
containing recommendations for programs and policies which 
encourage individual ownership of mobile home lots through condo-
minium or cooperative development of mobile home parks or through 
the development of mobile home subdivisions. 
Report to 
eongress. 
12 USC 1703 
note. 
INVALIDATION OF HUD INCREASES IN THERMAL REQUIREMENTS 
SEC. 322. The final rule revision 6A of the Department of Housing 
and Urban Development (entitled "Increases in Thermal Require-
ments for HUD Minimum Property Standards" and contained in the 
Federal Register, volume 44, number 74, April 16, 1979, 24 CFR Part 
200) is hereby disapproved and invalidated insofar as it applies to 
masonry construction. 
93 STAT. 1120 
PUBLIC LAW 96-153—DEC. 21, 1979 
DEPOSIT INSURANCE AND SECURITY EXTENDED TO INDIAN TRIBAL 
GOVERNMENT DEPOSITS 
SEC. 323. (a) Paragraph (2)(A) of section 11(a) of the Federal Deposit 
12 use 1821. 
Insurance Act is amended by— 
(1) striking out "or" at the end of clause (iii), 
(2) inserting "or" following the semicolon at the end of clause 
(iv), and 
(3) inserting immediately after clause (iv) the following: 
"(v) an officer, employee, or agent of any Indian tribe (as 
25 use 1452. 
defined in section 3(c) of the Indian Financing Act of 1974) or 
agency thereof having official custody of tribal funds and 
lawfully investing or depositing the same in time and sav-
ings deposits in an insured bank;". 
12 use 1728. 
(b) Paragraph (1) of section 405(d) of the National Housing Act is 
amended by— 
(1) striking out "or" at the end of clause (iii), 
(2) inserting "or" following the semicolon at the end of clause 
(iv), and 
(3) inserting immediately after clause (iv) the following: 
"(v) an officer, employee, or agent of any Indian tribe (as 
25 use 1452. 
defined in section 3(c) of the Indian Financing Act of 1974) or 
agency thereof having official custody of tribal funds and 
lawfully investing the same in an insured institution;". 
(c) Subparagraph (2)(A) of section 207(c) of the Federal Credit Union 
12 use 1787. 
Act is amended by— 
(1) striking out "or" at the end of clause (iii), 
(2) inserting "or" following the semicolon at the end of clause 
(iv), and 
(3) inserting immediately after clause (iv) the following: 
"(v) an officer, employee, or agent of any Indian tribe (as 
25 use 1452. 
defined in section 3(c) of the Indian Financing Act of 1974) or 
agency thereof having official custody of tribal funds and 
lawfully investing the same in a credit union insured in 
accordance with this title;". 
12 use 1757. 
(d) Section 107(6) of the Federal Credit Union Act is amended by 
striking out "nonmember units of Federal, State, or local govern-
ments and political subdivisions thereof enumerated in section 207 of 
12 use 1787. 
this Act" and inserting in lieu thereof "nonmember units of Federal, 
Indian tribal, State, or local governments and political subdivisions 
thereof enumerated in section 207 of this Act". 
12 use 1728 
(e) The amendments made by subsections (a) through (d) are not 
"°*®- 
applicable to any claim arising out of the closing of a bank, savings 
and loan association, or credit union prior to the date of enactment of 
this Act, but shall be applicable to any such claim arising on or after 
such date. 
12 use 90. 
(f) Section 5153 of the Revised Statutes is amended by adding at the 
end thereof the following paragraph: 
"Any national banking association may, upon the deposit with it of 
any funds by any federally recognized Indian tribe, or any officer, 
employee, or agent thereof in his or her official capacity, give security 
for the safekeeping and prompt payment of the funds so deposited by 
the deposit of United States bonds and otherwise as may be pre-
scribed by the Secretary of the Treasury for public funds under the 
first paragraph of this section.". 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1121 
AIDING MEMBERS OF THE FEDERAL HOME LOAN BANK SYSTEM 
SEC. 324. Section 11(h) of the Federal Home Loan Bank Act is 12 USC 1431. 
amended by inserting after "in the stock of the Federal National 
Mortgage Association," the following: "in stock, obligations, or other 
securities of any small business investment company formed pursu-
ant to section 301(d) of the Small Business Investment Act of 1958, for 15 USC 681. 
the purpose of aiding members of the Federal Home Loan Bank 
System,". 
SMALL BUSINESS INVESTMENT COMPANIES 
SEC. 325. Section 5(c)(4) of the Home Owners' Loan Act of 1933 is 12 USC 1464. 
amended by adding at the end thereof the following: 
"(E) SMALL BUSINESS INVESTMENT COMPANIES.—An associ-
ation may invest in stock, obligations, or other securities of 
any small business investment company formed pursuant to 
section 301(d) of the Small Business Investment Act of 1958, 15 USC 681. 
for the purpose of aiding members of the Federal Home Loan 
Bank System, but no association may make any investment 
under this subparagraph if its aggregate outstanding invest-
ment under this subparagraph would exceed 1 per centum of 
the assets of such association.". 
SINGLE FAMILY LOAN LIMITATION 
SEC. 326. Paragraph (1)(B) of section 5(c) of the Home Owners' Loan 
Act of 1933 is amended by striking out "$60,000" and inserting in lieu 12 USC 1464. 
thereof "$75,000". 
STOCK TO ADVANCES RATIO 
SEC. 327. Section 6(c)(2)(ii) of the Federal Home Loan Bank Act is 12 USC 1426. 
amended by striking out "twelve" and inserting in lieu thereof 
"twenty". 
PAPERWORK REDUCTION 
SEC. 328. Section 905 of the Housing and Community Development 
Amendments of 1978 is amended to read as follows: 
92 Stat. 2126. 
42 USC 3541. 
"PAPERWORK 
REDUCTION 
"SEC. 905. (a) The Congress finds and declares— 
"(1) that various departments, agencies, and instrumentalities 
of the Federal Government with responsibilities involving hous-
ing and housing 
finance 
programs, require, approve, use or 
otherwise employ a variety of different forms as residential 
mortgages (or deeds of trust or similar security instruments) as 
notes secured by those mortgages, and for applications, apprais-
als and other purposes, and that such duplication of forms 
constitutes a paperwork burden that adds to the costs imposed on 
the Nation's homeowners and home buyers; 
"(2) that unnecessary paperwork impairs the effectiveness of 
Federal housing and housing finance programs; 
"(3) that both single-family and multi-family programs are 
affected; and 
' 
59-194 O - 81 
73 : QL3 
93 STAT. 1122 
PUBLIC LAW 96-153—DEC. 21, 1979 
12 u s e 2601 
note. 
Report to 
Congress by 
OMB Director. 
"(4) that simplification of paperwork imposed by Federal 
housing and housing finance programs would contribute to 
achieving the Nation's housing goals by reducing housing costs. 
"(b)(1) Not later than October 1, 1980, the Secretary of Housing and 
Urban Development, the Secretary of Agriculture, and the Adminis-
trator of Veterans' Affairs shall, consistent with provisions of law 
governing the conduct of housing programs, employ in their respec-
tive programs— 
"(A) uniform single-family and multi-family note and mort-
gage forms; 
"(B) a uniform application form for mortgage approval and 
commitment for mortgage insurance; 
"(C) a uniform form for computation of the monthly net 
effective income of applicants; 
"(D) a uniform property appraisal form; 
"(E) a uniform settlement statement which shall satisfy the 
requirements of the Real Estate Settlement Procedures Act; and 
"(F) such other consolidated or simplified forms, particularly 
those which solicit identical or nearly identical information from 
the same persons in the conduct of two or more such programs, 
the consolidation or simplification of which the Secretaries of 
Housing and Urban Development and Agriculture and the Ad-
ministrator of Veterans' Affairs mutually agree would contrib-
ute to a reduction in the paperwork and regulatory burden of 
such programs. 
"(2) The Secretary of Housing and Urban Development, the Secre-
tary of Agriculture, and the Administrator of Veterans' Ajffairs shall, 
consistent with provisions of law governing their respective pro-
grams, provide by regulation for the elimination of forms which 
solicit information which is already available from other available 
sources through indexing or other means of identifying such forms. 
"(3) Each agency referred to in subsection (b) may employ riders, 
addenda, or similar forms of modification agreements to adapt such 
uniform forms to its respective programs and policies, consistent with 
the goals of minimizing the use and extent of such modification 
agreements and maximizing the suitability of such forms for the use 
of all participants, public and private. 
"(c) The Director of the Office of Management and Budget shall 
coordinate and monitor the development and implementation by 
Federal departments and agencies of the efforts required by subsec-
tion (b) and shall report to the Congress on such development and 
implementation and with respect to any provisions of law which 
unnecessarily prevent such departments and agencies from carrying 
out the provisions of this section as part of each report required under 
Public Law 93-556. Such report shall include an estimate of the 
reduction of the level of paperwork burden hours of the affected 
agencies as allocated by the Office of Management and Budget.". 
TITLE IV—INTERSTATE LAND SALES 
DEFINITIONS 
SEC. 401. Section 1402 of the Interstate Land Sales Full Disclosure 
15 use 1701. 
Act is amended by redesignating paragraphs (4) through (10) as 
paragraphs (5) through (11), respectively, and by striking out para-
graph (3) and inserting in lieu thereof the following new paragraphs: 
"(3) 'subdivision' means any land which is located in any State 
or in a foreign country and is divided or is proposed to be divided 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1123 
into lots, whether contiguous or not, for the purpose of sale or 
lease as part of a common promotional plan; 
"(4) 'common promotional plan' means a plan, undertaken by a 
single developer or a group of developers acting in concert, to 
offer lots for sale or lease; where such land is offered for sale by 
such a developer or group of developers acting in concert, and 
such land is contiguous or is known, designated, or advertised as 
a common unit or by a common name, such land shall be 
presumed, without regard to the number of lots covered by each 
individual offering, as being offered for sale or lease as part of a 
common promotional plan;". 
EXEMPTIONS 
SEC. 402. Subsections (a) and (b) of section 1403 of the Interstate 
Land Sales Full Disclosure Act are amended to read as follows: 15 USC 1702. 
"(a) Unless the method of disposition is adopted for the purpose of 
. ... 
evasion of this title, the provisions of this title shall not apply to— 
"(1) the sale or lease of lots in a subdivision containing less 
than twenty-five lots; 
"(2) the sale or lease of any improved land on which there is a 
residential, commercial, condominium, or industrial building, or 
the sale or lease of land under a contract obligating the seller or 
lessor to erect such a building thereon within a period of two 
years; 
"(3) the sale of evidences of indebtedness secured by a mort-
gage or deed of trust on real estate; 
"(4) the sale of securities issued by a real estate investment 
trust; 
"(5) the sale or lease of real estate by any government or 
government agency; 
"(6) the sale or lease of cemetery lots; 
"(7) the sale or lease of lots to any person who acquires such 
lots for the purpose of engaging in the business of constructing 
residential, commercial, or industrial buildings or for the pur-
pose of resale or lease of such lots to persons engaged in such 
business; or 
"(8) the sale or lease of real estate which is zoned by the 
appropriate governmental authority for industrial or commer-
cial development or which is restricted to such use by a declara-
tion of covenants, conditions, and restrictions which has been 
recorded in the official records of the city or county in which such 
real estate is located, when— 
"(A) local authorities have approved access from such real 
estate to a public street or highway; 
"(B) the purchaser or lessee of such real estate is a duly 
organized corporation, partnership, trust, or business entity 
engaged in commercial or industrial business; 
"(C) the purchaser or lessee of such real estate is repre-
sented in the transaction of sale or lease by a representative 
of its own selection; 
"(D) the purchaser or lessee of such real estate affirms in 
writing to the seller or lessor that it either (i) is purchasing 
or leasing such real estate substantially for its own use, or (ii) 
has a binding commitment to sell, lease, or sublease such 
real estate to an entity which meets the requirements of 
subparagraph (B), is engaged in commercial or industrial 
93 STAT. 1124 
PUBLIC LAW 96-153—DEC. 21, 1979 
business, and is not affiliated with the seller, lessor, or agent 
thereof; and 
"(E) a policy of title insurance or a title opinion is issued in 
connection with the transaction showing that title to the 
real estate purchased or leased is vested in the seller or 
lessor, subject only to such exceptions as may be approved in 
writing by such purchaser or the lessee prior to recordation 
of the instrument of conveyance or execution of the lease, 
but (i) nothing herein shall be construed as requiring the 
recordation of a lease, and (ii) any purchaser or lessee may 
waive, in writing in a separate document, the requirement of 
this subparagraph that a policy of title insurance or title 
opinion be issued in connection with the transaction. 
"(b) Unless the method of disposition is adopted for the purpose of 
evasion of this title, the provisions requiring registration and disclo-
Post, p. 1127; 
sure (as specified in section i404(aXl) and sections 1405 through 1408) 
IS^USC 1704- 
shall not apply to— 
"(1) the sale or lease of lots in a subdivision containing fewer 
than one hundred lots which are not exempt under subsection (a); 
"(2) the sale or lease of lots in a subdivision if, within the 
twelve-month period commencing on the date of the first sale or 
lease of a lot in such subdivision after the effective date of this 
subsection or on such other date within that twelve-month period 
as the Secretary may prescribe, not more than twelve lots are 
sold or leased, and the sale or lease of the first twelve lots in such 
subdivision in any subsequent twelve-month period, if not more 
than twelve lots have been sold or leased in any preceding 
twelve-month period after the effective date of this subsection; 
"(3) the sale or lease of lots in a subdivision if each noncontig-
uous part of such subdivision contains not more than twenty lote, 
and if the purchaser or lessee (or spouse thereof) has made a 
personal, on-the-lot inspection of the lot purchased or leased, 
prior to signing of the contract or agreement to purchase or lease; 
"(4) the sale or lease of lots in a subdivision in which each of the 
lots is at least twenty acres (inclusive of easements for ingress 
and egress or public utilities); 
"(5) the sale or lease of a lot which is located within a 
municipality or county where a unit of local government speci-
fies minimum standards for the development of subdivision lots 
taking place within its boundaries, when— 
"(A)(i) the subdivision meets all local codes and standards, 
and (ii) each lot is either zoned for single family residences 
or, in the absence of a zoning ordinance, is limited exclu-
sively to single family residences; 
"(B)(i) the lot is situated on a paved street or highway 
which has been built to standards applicable to streets and 
highways maintained by the unit of local government in 
which the subdivision is located and is acceptable to such 
unit, or, where such street or highway is not complete, a 
bond or other surety acceptable to the municipality or 
county in the full amount of the cost of completing such 
street or highway has been posted to assure completion to 
such standards, and (ii) the unit of local government or a 
homeowners association has accepted or is obligated to 
accept the responsibility of maintaining such street or high-
way, except that, in any case in which a homeowners 
association has accepted or is obligated to accept such 
responsibility, a good faith written estimate of the cost of 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1125 
carrying out such responsibility over the first ten years of 
ownership or lease is provided to the purchaser or lessee 
prior to the signing of the contract or agreement to purchase 
or lease; 
"(C) at the time of closing, potable water, sanitary sewage 
disposal, and electricity have been extended to the lot or the 
unit of local government is obligated to install such facilities 
within one hundred and eighty days, and, for subdivisions 
which do not have a central water or sewage disposal system, 
rather than installation of water or sewer facilities, there 
must be assurances that an adequate potable water supply is 
available year-round and that the lot is approved for the 
installation of a septic tank; 
"(D) the contract of sale requires delivery of a warranty 
deed (or, where such deed is not commonly used in the 
jurisdiction where the lot is located, a deed or grant which 
warrants that the grantor has not conveyed the lot to 
another person and that the lot is free from encumbrances 
made by the grantor or any other person claiming by, 
through, or under him) to the purchaser within one hundred 
and eighty days after the signing of the sales contract; 
"(E) at the time of closing, a title insurance binder or a 
^. , 
y 
title opinion reflecting the condition of the title shall be in 
existence and issued or presented to the purchaser or lessee 
showing that, subject only to such exceptions as may be 
approved in writing by the purchaser or lessee at the time of 
closing, marketable title to the lot is vested in the seller or 
lessor; 
"(F) the purchaser or lessee (or spouse thereof) has made a 
personal, on-the-lot inspection of the lot purchased or leased, 
prior to signing of the contract or agreement to purchase or 
lease; and 
"(G) there are no offers, by direct mail or telephone 
solicitation, of gifts, trips, dinners, or other such promotional 
techniques to induce prospective purchasers or lessees to 
visit the subdivision or to purchase or lease a lot; 
"(6) the sale or lease of a lot, if a mobile home is to be erected or 
placed thereon as a residence, where the lot is sold as a homesite 
by one party and the home by another, under contracts that 
obligate such sellers to perform, contingent upon the other seller 
carrying out its obligations so that a completed mobile home will 
be erected or placed on the completed homesite within a period of 
two years, and provide for all funds received by the sellers to be 
deposited in escrow accounts (controlled by parties independent 
of the sellers) until the transactions are completed, and further 
provide that such funds shall be released to the buyer on demand 
without prejudice if the land with the mobile home erected or 
placed thereon is not conveyed within such two-year period. Such 
homesite must conform to all local codes and standards for 
mobile home subdivisions, if any, must provide potable water, 
sanitary sewage disposal, electricity, access by roads, the pur-
chaser must receive marketable title to the lot, and where 
common facilities are to be provided, they must be completed or 
fully funded; 
"(7)(A) the sale or lease of real estate by a developer who is 
engaged in a sales operation which is intrastate in nature. For 
purposes of this exemption, a lot may be sold only if— 
93 STAT. 1126 
PUBLIC LAW 96-153—DEC. 21, 1979 
Definitions. 
"(i) the lot is free and clear of all liens, encumbrances, and 
adverse claims; 
"(ii) the purchaser or lessee (or spouse thereof) has made a 
personal on-the-lot inspection of the lot to be purchased or 
leased; 
"(iii) each purchase or lease agreement contains— 
"(I) a clear and specific statement describing a good 
faith estimate of the year of completion of, and the party 
responsible for, providing and maintaining the roads, 
water facilities, sewer facilities and any existing or 
promised amenities; and 
"(ID a nonwaivable provision specifying that the con-
tract or agreement may be revoked at the option of the 
purchaser or lessee until midnight of the seventh day 
following the signing of such contract or agreement or 
until such later time as may be required pursuant to 
applicable State laws; and 
"(iv) the purchaser or lessee has, prior to the time the 
contract or lease is entered into, acknowledged in writing 
the receipt of a written statement by the developer contain-
ing good faith estimates of the cost of providing electric, 
water, sewer, gas, and telephone service to such lot. 
"(B) As used in subparagraph (A)(i) of this paragraph, the 
terms 'liens', 'encumbrances', and 'adverse claims' do not include 
United States land patents and similar Federal grants or reser-
vations, property reservations which land developers commonly 
convey or dedicate to local bodies or public utilities for the 
purpose of bringing public services to the land being developed, 
taxes and assessments imposed by a State, by any other public 
body having authority to assess and tax property, or by a 
property owners' association, which, under applicable State or 
local law, constitute liens on the property before they are due 
and payable or beneficial property restrictions which would be 
enforceable by other lot owners or lessees in the subdivision, i
f
— 
"(i) the developer, prior to the time the contract of sale or 
lease is entered into, has furnished each purchaser or lessee 
with a statement setting forth in descriptive and concise 
terms all such liens, reservations, taxes, assessments and 
restrictions which are applicable to the lot to be purchased 
or leased; and 
"(ii) receipt of such statement has been acknowledged in 
writing by the purchaser or lessee. 
"(C) For the purpose of this paragraph, a sales operation is 
'intrastate in nature' if the developer is subject to the laws of the 
State in which the land is located, and each lot in the subdivision, 
other than those which are exempt under section 1403 (a), (b)(6), 
or (b)(8), is sold or leased to residents of the State in which the 
land is located; or 
"(8) the sale or lease of a lot in a subdivision containing fewer 
than three hundred lots i
f
— 
"(A) the principal residence of the purchaser or lessee is 
within the same standard metropolitan statistical area, as 
defined by the Office of Management and Budget, as the lot 
purchased or leased; 
"(B) the lot is free and clear of liens (such as mortgages, 
deeds of trust, tax liens, mechanics liens, or judgments) at 
the time of the signing of the contract or agreement and 
until a deed is delivered to the purchaser or the lease 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1127 
expires. As used in this subparagraph, the term 'liens' does Liens, 
not include (i) United States land patents and similar Fed-
eral grants or reservations, (ii) property reservations which 
land developers commonly convey or dedicate to local bodies 
or public utilities for the purpose of bringing public services 
to the land being developed, (iii) taxes and assessments 
imposed by a State, by any other public body having author-
ity to assess and tax property, or by a property owners' 
association, which, under applicable State or local law, 
constitute liens on the property before they are due and 
payable or beneficial property restrictions which would be 
enforceable by other lot owners or lessees in the subdivision, 
or (iv) other interests described in regulations prescribed by 
the Secretary; 
"(C) the purchaser or lessee (or spouse thereof) has made a 
personal on-the-lot inspection of the lot to be purchased or 
leased; 
"(D) each purchase or lease agreement contains (i) a clear 
and specific statement describing a good faith estimate of the 
year of completion of and the party responsible for providing 
and maintaining the roads, water facilities, sewer facilities 
and any existing or promised amenities; and (ii) a nonwaiva-
ble provision specifying that the contract or agreement may 
be revoked at the option of the purchaser or lessee until 
midnight of the seventh day following the signing of such 
contract or agreement or until such later time as may be 
required pursuant to applicable State laws; 
"(E) the purchaser or lessee has, prior to the time the 
contract or lease is entered into, acknowledged in writing 
receipt of a written statement by the developer setting forth 
(i) in descriptive and concise terms all liens, reservations, 
taxes, assessments, beneficial property restrictions which 
would be enforceable by other lot owners or lessees in the 
subdivision, and adverse claims which are applicable to the 
lot to be purchased or leased, and (ii) good faith estimates of 
the cost of providing electric, water, sewer, gas, and tele-
phone service to such lot; 
"(F) the developer executes and supplies to the purchaser a 
written instrument designating a person within the State of 
residence of the purchaser as his agent for service of process 
and acknowledging that the developer submits to the legal 
jurisdiction of the State in which the purchaser or lessee 
resides; and 
"(G) the developer executes a written affirmation to the 
effect that he has complied with the provisions of this 
paragraph, such affirmation to be given on a form provided 
by the Secretary, which shall include the following: the 
name and address of the developer; the name and address of 
the purchaser or lessee; a legal description of the lot; an 
affirmation that the provisions of this paragraph have been 
complied with; a statement that the developer submits to the 
jurisdiction of this title with regard to the sale or lease; and 
the signature of the developer.''. 
REQUIREMENTS RELATING TO THE SALE OR LEASE OF LOTS 
SEC. 403. Section 1404 of the Interstate Land Sales Full Disclosure 
Act is amended to read as follows: 
15 USC 1703. 
93 STAT. 1128 
PUBLIC LAW 96-153—DEC. 21, 1979 
"REQUIREMENTS RELATING TO THE SALE OR LEASE OF LOTS 
"SEC. 1404. (a) It shall be unlawful for any developer or agent, 
directly or indirectly, to make use of any means or instruments of 
transportation or communication in interstate commerce, or of the 
mails— 
"(1) with respect to the sale or lease of any lot not exempt 
Ante, p. 1123. 
under section 1403— 
"(A) to sell or lease any lot unless a statement of record 
with respect to such lot is in effect in accordance with section 
15 use 1706. 
1407; 
"(B) to sell or lease any lot unless a printed property 
15 use 1707. 
report, meeting the requirements of section 1408, has been 
furnished to the purchaser or lessee in advance of the 
signing of any contract or agreement by such purchaser or 
lessee; 
"(C) to sell or lease any lot where any part of the statement 
of record or the property report contained an untrue state-
ment of a material fact or omitted to state a material fact 
required to be stated therein pursuant to sections 1405 
through 1408 of this title or any regulations thereunder; or 
"(D) to display or deliver to prospective purchasers or 
lessees advertising and promotional material which is incon-
sistent with information required to be disclosed in the 
property report; or 
"(2) with respect to the sale or lease, or offer to sell or lease, any 
lot not exempt under section 1403(a)— 
"(A) to employ any device, scheme, or artifice to defraud; 
"(B) to obtain money or property by means of any untrue 
statement of a material fact, or any omission to state a 
material fact necessary in order to make the statements 
made (in light of the circumstances in which they were made 
and within the context of the overall offer and sale or lease) 
not misleading, with respect to any information pertinent to 
the lot or subdivision; 
"(C) to engage in any transaction, practice, or course of 
business which operates or would operate as a fraud or deceit 
upon a purchaser; or 
"(D) to represent that roads, sewers, water, gas, or electric 
service, or recreational amenities will be provided or com-
pleted by the developer without stipulating in the contract of 
sale or lease that such services or amenities will be provided 
or completed. 
"(b) Any contract or agreement for the sale or lease of a lot not 
exempt under section 1403 may be revoked at the option of the 
purchaser or lessee until midnight of the seventh day following the 
signing of such contract or agreement or until such later time as may 
be required pursuant to applicable State laws, and such contract or 
agreement shall clearly provide this right. 
"(c) In the case of any contract or agreement for the sale or lease of 
a lot for which a property report is required by this title and the 
property report has not been given to the purchaser or lessee in 
advance of his or her signing such contract or agreement, such 
contract or agreement may be revoked at the option of the purchaser 
or lessee within two years from the date of such signing, and such 
contract or agreement shall clearly provide this right. 
"(d) Any contract or agreement which is for the sale or lease of a lot 
not exempt under section 1403 and which does not provide— 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1129 
"(1) a description of the lot which makes such lot clearly 
identifiable and which is in a form acceptable for recording by 
the appropriate public official responsible for maintaining land 
records in the jurisdiction in which the lot is located; 
"(2) that, in the event of a default or breach of the contract or 
agreement by the purchaser or lessee, the seller or lessor (or 
successor thereof) will provide the purchaser or lessee with 
written notice of such default or breach and of the opportunity, 
which shall be given such purchaser or lessee, to remedy such 
default or breach within twenty days after the date of the receipt 
of such notice; and 
"(3) that, if the purchaser or lessee loses rights and interest in 
the lot as a result of a default or breach of the contract or 
agreement which occurs after the purchaser or lessee has paid 15 
per centum of the purchase price of the lot, excluding any 
interest owed under the contract or agreement, the seller or 
lessor (or successor thereof) shall refund to such purchaser or 
lessee any amount which remains after subtracting (A) 15 per 
centum of the purchase price of the lot, excluding any interest 
owed under the contract or agreement, or the amount of damages 
incurred by the seller or lessor (or successor thereof) as a result of 
such breach, whichever is greater, from (B) the amount paid by 
the purchaser or lessee with respect to the purchase price of the 
lot, excluding any interest paid under the contract or agreement, 
may be revoked at the option of the purchaser or lessee for two years 
from the date of the signing of such contract or agreement. This 
•' 
subsection shall not apply to the sale of a lot for which, within one 
hundred and eighty days after the signing of the sales contract, the 
purchaser receives a warranty deed (or, where such deed is not 
commonly used in the jurisdiction where the lot is located, a deed or 
grant that warrants at least that the grantor has not conveyed the lot 
to another person and that the lot is free from encumbrances made by 
the grantor or any other person claiming by, through, or under him 
or her). 
"(e) If a contract or agreement is revoked pursuant to subsection 
(b), (c), or (d), if the purchaser or lessee tenders to the seller or lessor 
(or successor thereof) an instrument conveying his or her rights and 
interests in the lot, and if the rights and interests and the lot are in a 
condition which is substantially similar to the condition in which 
they were conveyed or purported to be conveyed to the purchaser or 
lessee, such purchaser or lessee shall be entitled to all money paid by 
.^„ *
^ 
him or her under such contract or agreement.". 
CERTIFICATION OF SUBSTANTIALLY EQUIVALENT STATE LAW 
SEC. 404. Section 1409 of the Interstate Land Sales Full Disclosure 
Act is amended to read as follows: 
15 USC 1708. 
"CERTIFICATION OF SUBSTANTIALLY EQUIVALENT STATE LAW 
"SEC. 1409. (a)(1) A State shall be certified if the Secretary deter-
mines— 
"(A) that, when taken as a whole, the laws and regulations of 
the State applicable to the sale or lease of lots not exempt under 
section 1403 require the seller or lessor of such lots to disclose Ante, p. 1123. 
information which is at least substantially equivalent to the 
information required to be disclosed by section 1408; and 
15 USC 1707. 
93 STAT. 1130 
PUBLIC LAW 96-153—DEC. 21, 1979 
Ante, p. 1123. 
15 use 1707. 
15 use 1704-
1707. 
15 u s e 1706. 
Review. 
"(B) that the State's administration of such laws and regula-
tions provides, to the maximum extent practicable, that such 
information is accurate. 
"(2) In the case of any State which is not certified under paragraph 
(1), such State shall be certified if the Secretary determines— 
"(A) that, when taken as a whole, the laws and regulations of 
the State applicable to the sale or lease of lots not exempt under 
section 1403 provide sufficient protection for purchasers and 
lessees with respect to the matters for which information is 
required to be disclosed by section 1408 but which is not required 
to be disclosed by such State's laws and regulations; and 
"(B) that the State's administration of such laws and regula-
tions provides, to the maximum extent practicable, that (i) 
information required to be disclosed by such laws and regula-
tions is accurate, and (ii) sufficient protection for purchasers and 
lessees is made available with respect to the matters for which 
information is not required to be disclosed. 
"(3) Any State requesting certification must agree to accept a 
property report covering land located in another certified State but 
offered for sale or lease in the State requesting certification if the 
property report has been approved by the other certified State. Such 
property report shall be the only property report required by the 
State with respect to the sale or lease of such land. 
"(b) After the Secretary has certified a State under subsection (a), 
the Secretary shall accept for filing under sections 1405 through 1408 
(and declare effective as the Federal statement of record and property 
report which shall be used in all States in which the lots are offered 
for sale or lease) disclosure materials found acceptable, and any 
related documentation required, by State authorities in connection 
with the sale or lease of lots located within the State. The Secretary 
may accept for such filing, and declare effective as the Federal 
statement of record and property report, such materials and docu-
mentation found acceptable by the State in connection with the sale 
or lease of lots located outside that State. Nothing in this subsection 
shall preclude the Secretary from exercising the authority conferred 
by subsections (d) and (e) of section 1407. 
"(c) If a State fails to meet the standards for certification pursuant 
to subsection (a), the Secretary shall notify the State in writing of the 
changes in State law, regulation, or administration that are needed 
in order to obtain certification. 
"(d) The Secretary shall periodically review the laws and regula-
tions, and the administration thereof, of States certified under 
subsection (a), and may withdraw such certification upon a determi-
nation that such laws, regulations, and the administration thereof, 
taken as a whole, no longer meet the requirements of subsection (a). 
"(e) Nothing in this title may be construed to prevent or limit the 
authority of any State or local government to enact and enforce with 
regard to the sale of land any law, ordinance, or code not in conflict 
with this title. In administering this title, the Secretary shall cooper-
ate with State authorities charged with the responsibility of regulat-
ing the sale or lease of lots which are subject to this title.". 
CIVIL LIABIUTIES 
15 use 1709. 
SEC. 405. Section 1410 of the Interstate Land Sales Full Disclosure 
Act is amended to read as follows: 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1131 
"CIVIL LIABILITIES 
"SEC. 1410. (a) A purchaser or lessee may bring an action at law or 
in equity against a developer or agent if the sale or lease was made in 
violation of section 1404(a). In a suit authorized by this subsection, the Ante, p. 1128. 
court may order damages, specific performance, or such other relief 
as the court deems fair, just, and equitable. In determining such relief 
the court may take into account, but not be limited to, the following 
factors: the contract price of the lot or leasehold; the amount the 
purchaser or lessee actually paid; the cost of any improvements to the 
lot; the fair market value of the lot or leasehold at the time relief is 
determined; and the fair market value of the lot or leasehold at the 
time such lot was purchased or leased. 
"(b) A purchaser or lessee may bring an action at law or in equity 
against the seller or lessor (or successor thereoD to enforce any right 
under subsection (b), (c), (d), or (e) of section 1404. 
"(c) The amount recoverable in a suit authorized by this section 
may include, in addition to matters specified in subsections (a) and 
(b), interest, court costs, and reasonable amounts for attorneys' fees, 
independent appraisers' fees, and travel to and from the lot. 
"(d) Every person who becomes liable to make any payment under 
this section may recover contribution as in cases of contract from any 
person who, if sued separately, would have been liable to make the 
' 
same payment.". 
LIMITATION OF ACTIONS 
SEC. 406. Section 1412 of the Interstate Land Sales Full Disclosure 
Act is amended to read as follows: 
15 USC 1711. 
"LIMITATION OF ACTIONS 
"SEC. 1412. (a) No action shall be maintained under section 1410 .Supra, 
with respect to— 
"(1) a violation of subsection (a)(1) or (a)(2)(D) of section 1404 
more than three years after the date of signing of the contract of 
sale or lease; or 
"(2) a violation of subsection (a)(2)(A), (a)(2)(B), or (a)(2)(C) of 
section 1404 more than three years after discovery of the viola-
tion or after discovery should have been made by the exercise of 
reasonable diligence. 
"(b) No action shall be maintained under section 1410 to enforce a 
right created under subsection Oo), (c), (d), or (e) of section 1404 unless 
brought within three years after the signing of the contract or lease, 
not 
withstanding deli 
very of a deed to a purchaser.". 
..^.f^ 
,.^, 
ADMINISTRATIVE PROCEDURE 
SEC. 407. Section 1416 of the Interstate Land Sales Full Disclosure 
Act is amended by adding at the end thereof the following: 
15 USC 1715. 
"(c) The Secretary shall conduct all actions with respect to rule-
making or adjudication under this title in accordance with the 
provisions of chapter 5 of title 5, United States Code. Notice shall be 
given of any adverse action or final disposition and such notice and 
the entry of any order shall be accompanied by a written statement of 
supporting facts and legal authority.". 
93 STAT. 1132 
PUBLIC LAW 96-153—DEC. 21, 1979 
CRIMINAL PENALTIES 
15 use 1717. 
SEC. 408. Section 1418 of the Interstate Land Sales Full Disclosure 
Act is amended to read as follows: 
Rules and 
regulations. 
PENALTIES 
"SEC. 1418. Any person who willfully violates any of the provisions 
of this title, or the rules and regulations prescribed pursuant thereto, 
or any person who willfully, in a statement of record filed under, or in 
a property report issued pursuant to, this title, makes any untrue 
statement of a material fact or omits to state any material fact 
required to be stated therein, shall upon conviction be fined not more 
than $10,000 or imprisoned not more than five years, or both.". 
15 u s e 1720. 
15 u s e 1701 
note. 
15 u s e 1719a. 
REPORT TO CONGRESS 
SEC. 409. The Interstate Land Sales Full Disclosure Act is amended 
by redesignating sections 1421 and 1422 as sections 1422 and 1423, 
respectively, and by inserting the following new section after section 
1420: 
"REPORT TO CONGRESS 
"SEC. 1421. The Secretary shall prepare and submit to the Congress 
on March 1, 1981, and biennially thereafter a report on the adminis-
tration of this title and its impact upon the land development 
industry and purchasers and lessees of undeveloped land. Such report 
shall include but not be restricted to the analysis of— 
"(1) consumer and industry complaints and their resolution, 
with particular emphasis on the impact of various statutory and 
regulatory exemptions; 
"(2) the effect the State certification has had in encouraging 
States to provide protection to purchasers of undeveloped land; 
and 
"(3) efforts by the Secretary to simplify registration and 
disclosure procedures. 
The report shall also contain such legislative recommendations as the 
Secretary deems advisable.". 
Regulations. 
15 u s e 1701 
note. 
Ante, p. 1123. 
EFFECTIVE DATE 
SEC. 410. The amendments made by this title shall become effective 
on the effective date of regulations implementing such amendments, 
but in no case later than six months following the date of enactment 
of this Act, except that section 1403(b)(7) of the Interstate Land Sales 
Full Disclosure Act, contained in the amendment made by section 
402, shall become effective on the date of enactment. 
TITLE V-RURAL HOUSING 
AUTHORIZATIONS 
42 use 1483. 
SEC. 501. (a) Section 513 of the Housing Act of 1949 is amended to 
read as follows: 
"AUTHORIZATIONS 
"SEC. 513. (a) The Secretary may, as approved in appropriation 
Acts, insure and guarantee loans under the authorities provided in 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1133 
this title in an aggregate principal amount not to exceed 
$4,484,000,000 with respect to fiscal year ending September 30, 1980; 
except that— 
"(1) not less than $3,070,000,000 of any amount so approved in 
appropriation Acts for such year shall be made available for 
loans insured or guaranteed on behalf of borrowers receiving 
assistance pursuant to subparagraph (B) or (C) of section 
521(a)(1); 
42 USC 1490a. 
"(2) not more than $38,000,000 of such amount so approved for 
such fiscal year may be made available for loans insured under 
section 514; and 
Infra. 
"(3) not more than $5,000,000 of such amount so approved shall 
be available for making advances under section 501(e) for such 42 USC 1471. 
fiscal year. 
"(b) There are authorized to be appropriated— 
"(1) such sums as may be necessary to meet payments on notes 
or other obligations issued by the Secretary under section 511 42 USC 1481. 
equal to (A) the aggregate of the contributions made by the 
Secretary in the form of credits on principal due on loans made 
pursuant to section 503, and (B) the interest due on a similar sum 42 USC 1473. 
represented by notes or other obligations issued by the Secretary; 
"(2) not to exceed $48,000,000 for loans and grants pursuant to 
section 504 for the fiscal year ending September 30, 1980; 42 USC 1474. 
"(3) not to exceed $30,000,000 for financial assistance pursuant 
to section 516 for the fiscal year ending September 30, 1980; 42 USC 1486. 
"(4) not to exceed $1,500,000 for the purposes of section 525(a), 42 USC I490e. 
of which not less than $750,000 shall be used for counseling 
purchasers and delinquent borrowers, and not to exceed 
$1,000,000 for the purposes of section 525(b) for the fiscal year 
ending September 30,1980; and 
"(5) such sums as may be required by the Secretary to adminis-
ter the provisions of sections 235 and 236 of the National Housing 
Act and section 8 of the United States Housing Act of 1937.". 
(b) Section 514(d) of such Act is repealed. 
(c)(1) Section 521(a)(1)(C) of such Act is amended by adding the 
following new sentences at the end thereof: "The amount of such 
additional assistance which may be approved in appropriation Acts 
may not exceed an aggregate amount of $985,000,000 for contracts 
entered into with respect to fiscal year 1979 and an aggregate amount 
of $500,000,000 for contracts entered into with respect to fiscal year 
1980. Such additional assistance may not be so approved with respect 
to any fiscal year after fiscal year 1980.". 
(2) Section 521(c) of such Act is amended by inserting the following 
new sentence after the first sentence thereof: "There are authorized 
to be appropriated to the Rural Housing Insurance Fund such sums 
as may be necessary to reimburse such fund for the amount of 
assistance payments described in subsection (a)(1)(C).". 
(3) Section 521(a)(1) of such Act is amended by striking out subpara-
graph (H). 
(d) Section 523(f) of such Act is amended— 
42 use 1490c. 
(1) by striking out the first sentence and inserting in lieu 
thereof the following: "There is authorized to be appropriated an 
amount to carry out this section not to exceed $5,000,000 for the 
fiscal year ending September 30,1980."; and 
(2) by striking out "November 30,1979" in the second sentence 
and inserting in lieu thereof "September 30,1980". 
(e) Section 523(g) of such Act is amended by striking out "and not to 
exceed $3,000,000 for the fiscal year ending September 30, 1979" and 
12 USC 1715z. 
12 USC 1715Z-1. 
42 USC 1437f. 
Repeal. 
42 USC 1484. 
42 USC 1490a. 
93 STAT. 1134 
PUBLIC LAW 96-153—DEC. 21, 1979 
42 u s e 1485. 
42 u s e 1487. 
inserting in lieu thereof "not to exceed $3,000,000 for the fiscal year 
ending September 30,1979, and not to exceed $1,000,000 for the fiscal 
year ending September 30,1980". 
(f) Section 5150t))(5) of such Act is amended by striking out "Novem-
ber 30, 1979" and inserting in lieu thereof "September 30, 1980". 
(g) Section 517(a)(1) of such Act is amended by striking out "Novem-
ber 30, 1979" and inserting in lieu thereof "September 30, 1980". 
42 u s e 1490a. 
12 u s e 1709-1. 
12 u s e 1709. 
Definitions. 
42 u s e 1471. 
INTEREST RATE; DEFINITION OF LOW INCOME 
SEC. 502. (a) Section 521(a)(1)(A) of the Housing Act of 1949 is 
amended by inserting before the period at the end of the first 
sentence the following: ", except that such loans to provide housing 
and related facilities for persons or families of moderate income shall 
bear interest at the rate established by the Secretary of Housing and 
Urban Development under section 3(a) of Public Law 90-301 with 
respect to maximum interest rates established for mortgages insured 
under section 2O30b) of the National Housing Act if the Secretary 
determines that the borrower can afford such higher interest 
charges". 
0?) Section 501(b) of such Act is amended by adding at the end 
thereof the following: 
"(4) For the purpose of this title, the term 'persons of low income' 
and the term 'persons and families of low income' means families and 
persons whose income do not exceed 80 per centum of the median 
income for the area, as determined by the Secretary with adjust-
ments for smaller and larger families, except that (A) if the Secretary 
determines that it is impracticable to use the median income for any 
area, the Secretary may use for such area the median income of all 
the nonmetropolitan areas in the State, and (B) the Secretary may 
establish income ceilings higher or lower than 80 per centum of 
median income on the basis of his findings that such variations are 
necessary because of prevailing levels of construction costs, unusu-
ally high or low family incomes, or other factors. 
"(5) For the purpose of this title, the term 'income' means income 
from all sources of each member of a household, as determined in 
accordance with criteria prescribed by the Secretary.". 
42 u s e 1472. 
42 u s e 1484. 
42 u s e 1485. 
PREPAYMENT AND REFINANCING OF LOANS UNDER SECTIONS 514 AND 515 
SEC. 503. (a) Section 502(b)(2) of the Housing Act of 1949 is amended 
by inserting the following before the semicolon at the end thereof: 
", except that any prepajonent of a loan made or insured under section 
514 or 515 shall be subject to the provisions of subsection (c)". 
O
b
) Section 502 of such Act is amended by inserting the following 
new subsection at the end thereof: 
"(c)(1) Except as provided in paragraph (2), the Secretary may not 
accept an offer to prepay, or request refinancing in accordance with 
subsection 0t))(3) of, any loan made or insured under section 514 or 515 
of this title pursuant to a contract entered into before or after the 
date of enactment of this subsection, unless the Secretary takes 
appropriate action which will obligate the borrower (and successors 
in interest thereof) to utilize the assisted housing and related facili-
ties for the purposes specified in section 514 or 515, as the case may 
be, for a period of— 
"(A) fifteen years from the date on which the loan was made in 
the case of a loan made or insured pursuant to a contract entered 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1135 
into before or after the date of enactment of this subsection and 
utilized for housing and related facilities which have not received 
assistance under section 521 (aXlXB) or (a)(2) of this title or 
section 8 of the United States Housing Act of 1937; or 
"(B) twenty years from the date on which the loan was made in 
the case of any other such loan; 
or until the Secretary determines (prior to the end of such period) 
that there is no longer a need for such housing and related facilities 
to be so utilized or that Federal or other financial assistance provided 
to the residents of such housing will no longer be provided. 
"(2) In the case of any such loan made or insured pursuant to a 
contract entered into before the date of enactment of this subsection, 
the Secretary, after examining an offer to prepay such loan and the 
likely consequences of accepting such offer, shall accept such offer 
without taking the appropriate action described in paragraph (1) 
unless, after such examination, the Secretary determines that— 
"(A) due to a change in the use of such housing and related 
facilities, or to an increase in rental or other charges, likely to 
occur as a result of prepayment, the low and moderate income 
and elderly tenants occupying the assisted housing and related 
facilities at the time of such offer cannot reasonably be expected 
to remain in occupancy for the applicable period described in 
paragraph (1), but notwithstanding such a determination, the 
Secretary shall accept such an offer without taking such appro-
priate action if such tenants who are likely to be displaced as a 
result of such changes or increases will be provided with afford-
able, decent, safe, sanitary, and available alternative housing; or 
"(B) in the case of housing and related facilities containing 
more than ten dwelling units, the changes likely to occur as a 
result of such prepayment will have a substantial, adverse effect 
on the supply of affordable, decent, safe, and sanitary housing 
available to low and moderate income and elderly persons in the 
area in which such housing and related facilities are located.". 
42 u s e 1490a. 
42 u s e 1437f. 
RENTAL ASSISTANCE 
SEC. 504. (a) The first sentence of section 521(a)(2)(A) of the Housing 
Act of 1949 is amended— 
42 USC 1490a. 
(1) by striking out "public and private nonprofit owners" and 
inserting in lieu thereof "the owners"; and 
(2) by inserting a comma before "congregate". 
(b) Section 521(a)(2)(A) of the Housing Act of 1949 is amended— 
(1) by striking out "20 per centum" each place it appears in the 
second sentence and inserting in lieu thereof "70 per centum"; 
(2) by inserting "to a public or private nonprofit owner" after 
"section 514" the first time it appears in clause (i) of the second 42 use 1484. 
sentence; and 
(3) by inserting after the second sentence the following: "In 
approving projects for assistance under this paragraph, the 
Secretary shall give a priority to projects in which assistance is 
provided to 40 per centum or fewer of the units contained in the 
project.". 
TRAINING FOR SELF-HELP HOUSING 
SEC. 505. Section 523(b) of the Housing Act of 1949 is amended— 42 use I490c. 
(1) by striking out "and" at the end of paragraph (1); 
(2) by redesignating paragraph (2) as paragraph (3); and 
(3) by inserting after paragraph (1) the following: 
93 STAT. 1136 
PUBLIC LAW 96-153—DEC. 21, 1979 
"(2) to make grants to, or contract with, national or regional 
private nonprofit corporations to provide training and technical 
assistance to public or private nonprofit corporations, agencies, 
institutions, organizations, and other associations eligible to 
receive assistance under this section in order to expand the use of 
authorities contained in this section and to improve perform-
ance; and". 
REFINANCING 
42 use 1471. 
SEC. 506. Section 501(a)(4) of the Housing Act of 1949 is amended by 
inserting "and" after the comma at the end of subparagraph (A), and 
by striking out subparagraphs (B) and (C) and inserting in lieu thereof 
the following: 
"(B)(i) if not refinanced, is likely to result (because of circum-
stances beyond the control of the applicant) at an early date in 
the loss of the applicant's necessary dwelling or essential farm 
service buildings, or 
"(ii) if combined (in the case of a dwelling that the Secretary 
finds not to be decent, safe, and sanitary) with a loan for 
improvement, rehabilitation, or repairs and not refinanced, is 
likely to result in the applicant's continuing to be deprived of a 
decent, safe, and sanitary dwelling.". 
PROPERTY DISPOSITION 
42 use 1480. 
SEC. 507. Section 510(e) of the Housing Act of 1949 is amended— 
(1) by inserting ", to repair and rehabilitate such property," 
after "United States therein"; and 
(2) by inserting before the semicolon at the end thereof the 
following: "; except that the Secretary may not sell or otherwise 
dispose of such property unless (1) the Secretary assures that 
such property will meet decent, safe, and sanitary standards, (2) 
the recipient of the property is obligated, as a condition of the 
sale or other disposition of the property, to meet such standards 
with respect to the property before such property is occupied, or 
(3) such recipient is precluded, as a condition of the sale or other 
disposition of the property, from using the property for residen-
tial purposes". 
CONSTRUCTION DEFECTS 
42 use 1479. 
SEC 508. Section 509(c) of the Housing Act of 1949 is amended bv 
striking out "within eighteen months after such date of enactment' 
in the first sentence and inserting in lieu thereof "within thirty-six 
months after such date of enactment". 
FARM LABOR HOUSING ASSISTANCE 
42 use 1486. 
SEC. 509. Section 516 of the Housing Act of 1949 is amended by 
adding at the end thereof the following: 
"(h) Notwithstanding the provisions of subsection (a)(3), the Secre-
tary may, upon a finding of persistent need for migrant farmworker 
housing in any area, provide assistance to eligible applicants for 90 
PUBLIC LAW 96-153—DEC. 21, 1979 
93 STAT. 1137 
per centum of the development costs of such housing in such area to 
be used solely by migrant farmworkers while they are away from 
their residence. Such housing shall be constructed in such a manner 
as to be safe and weatherproof for the time it is to be occupied, be 
equipped with potable water and modern sanitation facilities (includ-
ing a kitchen sink, toilet, and bathing facilities), and meet such other 
requirements as the Secretary may prescribe.". 
INCREASE IN THE CEIUNG FOR SECTION 504(a) LOANS AND LOAN-GRANT 
COMBINATIONS 
SEC. 510. The second sentence of section 504(a) of the Housing Act of 
1949 is amended to read as follows: "No assistance shall be extended 42 USC 1474. 
to any individual or family under this subsection in the form of a 
grant in excess of $5,000, and no assistance shall be extended to any 
individual or family under this subsection in the form of a loan or a 
combined loan and grant in excess of $7,500.". 
ASSISTANCE ALLOCATION 
SEC. 511. Section 517(o) of the Housing Act of 1949 is amended— 42 USC 1487. 
(1) by inserting "(1)" before "At"; and 
(2) by adding the following new paragraph at the end thereof: 
"(2) At least 30 per centum of the assistance made available in any 
area of any State pursuant to this title in any fiscal year shall, to the 
extent practicable, benefit persons with incomes below 50 per centum 
of the median income which is determined for that area in accordance 
with section 501(b)(4).". 
42 USC 1471. 
. 
TITLE VI—CRIME INSURANCE, RIOT REINSURANCE, AND 
FLOOD INSURANCE EXTENSIONS 
EXTENSIONS OF CRIME AND RIOT INSURANCE PROGRAM 
SEC. 601. Section 1201 of the National Housing Act is amended— 41 USC 1749bbb. 
(1) by striking out in subsection (b)(1), "September 30, 1980" 
and inserting in lieu thereof "September 30,1981"; 
(2) by striking out, in subsection (b)(1)(A), "September 30,1983" 
and inserting in lieu thereof "September 30,1984"; and 
(3) by striking out, in subsection (b)(2), "or as soon thereafter as 
possible,". 
EXTENSION OF FLOOD INSURANCE PROGRAM 
SEC. 602. (a) Section 1319 of the National Flood Insurance Act of 
1968 is amended by striking out "September 30, 1980" and inserting 42 USC 4026. 
in lieu thereof "September 30,1981". 
(b) Section 1336(a) of such Act is amended by striking out "Septem- 42 use 4056. 
ber 30, 1980" and inserting in lieu thereof "September 30, 1981". 
(c) Section 1376(c) of such Act is amended by striking out "and not 42 USC 4127. 
to exceed $114,000,000 for the fiscal year 1979" and inserting in lieu 
59-194 O — 81 
74 : QL3 
93 STAT. 1138 
PUBLIC LAW 96-153—DEC. 21, 1979 
thereof the following: "not to exceed $114,000,000 for the fiscal year 
1979, and not to exceed $74,000,000 for the fiscal year 1980". 
TRANSFER OF FLOOD INSURANCE ADMINISTRATOR 
SEC 603. (a) Section 1105(a) of the Urban Property Protection and 
Reinsurance Act of 1968 (title XI of the Housing and Urban Develop-
42 use 3533a. 
ment Act of 1968) is amended by striking out "Department of 
Housing and Urban Development" and substituting in lieu thereof 
"Federal Emergency Management Agency". 
(b) Section 5315(91) of title 5, United States Code, is amended by 
striking out "Department of Housing and Urban Development" 
and substituting in lieu thereof "Federal Emergency Management 
Agency". 
Approved December 21, 1979. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 96-154 (Comm. on Banking, Finance and Urban Affairs) and 
No. 96-706 (Comm. of Conference). 
SENATE REPORTS: No. 96-145 accompanying S. 903, No 96-157 accompanying S. 
1064, and No. 96-164 accompanying S. 1149 (Comm. on Banking, 
Housing, and Urban Affairs) and No. 96-496 (Comm. of Confer-
ence) 
CONGRESSIONAL RECORD, VoL 125 (1979): 
May 31, June 4-7, considered and passed House. 
July 12, 13, S. 903, S. 1064, and S. 1149, considered in Senate. 
July 13, H.R. 3875 considered and passed Senate, amended, in lieu of S. 903, 
S. 1064, and S. 1149. 
Dec. 18, Senate agreed to conference report. 
Dec. 19, House agreed to conference report. 
- • O *i'i -lift