Housing and Community Development Act of 1974
PL 93-383 (S.3066), enacted 08/22/1974

88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
633 
SEC. 611. None of the funds available under this Act shall be avail- ^ ^;^e^"ran^.^ 
able for administrative expenses in connection with the transfer of ferJ."^^' 
any functions, personnel, facilities, equipment, or funds out of the 
United States Customs Service unless such transfers have been 
specifically authorized by the Congress. 
Bureau of 
SEC. 612. None of the funds available under this Act shall be avail- cus"o^^ activi-
t i e s . 
Short title. 
able for administrative expenses for the purpose of transferring the 
border control activities of the Bureau of Customs to any other agency 
of the Federal Government. 
This Act may be cited as the "Treasury, Postal Service, and General 
Government Appropriation Act, 1975". 
Approved August 21, 1974. 
Public Law 93-382 
JOINT RESOLUTION 
A,^,.,, 22^ ,^,, 
Designating August 26, 1974, as "Women's Equality Day" 
[H. J. Res. 1105] 
Resolved hy the Senate and House of Representatives 
of the United 
States of America in Congress assemhled, That August 26, 1974, is Eq^amyDay. 
designated as "Women's Equality Day", and the President is author- 
Designation 
ized and requested to issue a proclamation in commemoration of that authorization. 
day in 1920 on which the women of America were first guaranteed 
the right to vote. 
Approved August 22, 1974. 
Public Law 93-383 
AN ACT 
August 22, 1974 
To establisli a program of community development block grants, to amend and 
[s.3066] 
extend laws relating to housing and urban development, and for other pur-
poses. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ That this Act may 
Housing and 
be cited as the "Housing and Community Development Act of 1974". ve° opmen^A^'crof 
TITLE I—COMMUNITY DEVELOPMENT 
FINDINGS AND PURPOSE 
1974. 
42 u s e 5301 
note. 
SEC. 101. (a) The Congress finds and declares that the Nation's 
''^ use saoi. 
cities, towns, and smaller urban communities face critical social, eco-
nomic, and environmental problems arising in significant measure 
from— 
(1) the growth of population in metropolitan and other urban 
areas, and the concentration of persons of lower income in central 
cities; and 
634 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
(2) inadequate public and private investment and reinvestment 
in housing and other physical facilities, and related public and 
social services, resulting in the growth and persistence of urban 
slums and blight and the marked deterioration of the quality of 
the urban environment. 
(b) The Congress further finds and declares that the future welfare 
of the Nation and the well-being of its citizens depend on the establish-
ment and maintenance of viable urban communities as social, economic, 
and political entities, and require— 
(1) systematic and sustained action by Federal, State, and local 
governments to eliminate blight, to conserve and renew older 
urban areas, to im.prove the living environment of low- and mod-
erate-income families, and to develop new centers of population 
growth and economic activity; 
(2) substantial expansion of and greater continuity in the 
scope and level of Federal assistance, together with increased 
private investment in support of community development activi-
ties; and 
(3) continuing effort at all levels of government to streamline 
programs and improve the functioning of agencies responsible 
for planning, implementing, and evaluating community develop-
ment efforts. 
(c) The primary objective of this title is the development of viable 
urban communities, by providing decent housing and a suitable living 
environment and expanding economic opportunities, principally for 
persons of low and moderate income. Consistent with this primary 
objective, the Federal assistance provided in this title is for the support 
of community development activities which are directed toward the 
following specific objectives— 
(1) the elimination of slums and blight and the prevention of 
blighting influences and the deterioration of property and neigh-
borhood and community facilities of importance to the welfare of 
the community, principally persons of low and moderate income; 
(2) the elimination of conditions which are detrimental to 
health, safety, and public welfare, through code enforcement, 
demolition, 
interim 
rehabilitation 
assistance, 
and 
related 
activities; 
(3) the conservation and expansion of the Nation's housing 
stock in order to provide a decent home and a suitable living envi-
ronment for all persons, but principally those of low and moderate 
income; 
(4) the expansion and improvement of the quantity and quality 
of community services, principally for persons of low and moder-
ate income, which are essential for sound community development 
and for the development of viable urban communities; 
(5) a more rational utilization of land and other natural 
resources and the better arrangement of residential, commercial, 
industrial, recreational, and other needed activity centers; 
(6) the reduction of the isolation of income groups within 
communities and geographical areas and the promotion of an 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
635 
increase in the diversity and vitality of neighborhoods through 
the spatial deconcentration of housing opportunities for persons of 
lower income and the revitalization of deteriorating or deterio-
rated neighborhoods to attract persons of higher income; and 
(7) the restoration and preservation of properties of special 
value for historic, architectural, or esthetic reasons. 
It is the intent of Congress that the Federal assistance made available 
under this title not be utilized to reduce substantially the amount of 
local financial support for community development activities below 
the level of such support prior to the availability of such assistance, 
(d) It is also the purpose of this title to further the development 
of a national urban growth policy by consolidating a number of 
complex and overlapping programs of financial assistance to com-
munities of varying sizes and needs into a consistent system of Federal 
aid which— 
(1) provides assistance on an annual basis, with maximum cer-
tainty and minimum delay, upon which communities can rely in 
their planning; 
(2) encourages community development activities which are 
consistent wath comprehensive local and areawide development 
planning; 
(3) furthers achievement of the national housing goal of a 
decent home and a suitable living environment for every Ameri-
can family; and 
(4) fosters the undertaking of housing and community develop-
ment activities in a coordinated and mutually supportive manner, 
DEFINITIONS 
SEC. 102. (a) As used in this title— 
^2 use 5302. 
(1) The term "unit of general local government" means any 
city, county, town, township, parish, village, or other general 
purpose political subdivision of a State; Guam, the Virgin Islands, 
and American Samoa, or a general purpose political subdivision 
thereof; a combination of such political subdivisions recognized 
by the Secretary; the District of Columbia; the Trust Territory 
of the Pacific Islands; and Indian tribes, bands, groups, and 
nations, including Alaska Indians, Aleuts, and Eskimos, of the 
United States. Such tei-m also includes a State or a local public 
body or agency (as defined in section 711 of the Housing and 
Urban Dev^elopment Act of 1970), community association, or 
other entity, which is approved by the Secretary for the purpose 
of providing public facilities or services to a ncAv community as 
part of a program meeting the eligibility standards of section 
712 of the Housing and Urban Development Act of 1970 or title 
^^ use 4si3. 
IV of the Housing and Urban Development Act of 1968. 
^2 use 3901. 
(2) The term "State" means any State of the United States, 
or any instrumentality thereof approved by the Governor; and 
the Commonwealth of Puerto Kico. 
(3) The term "metropolitan area" means a standard metropoli-
tan statistical area as established by the Office of Management 
and Budget. 
(4) The term "metropolitan city" means (A) a city wdthin a 
metropolitan area which is the central city of such area, as defined 
42 u s e 4512. 
636 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
and used by the Office of Management and Budget, or (B) any 
other city, within a metropolitan area, which has a population of 
fifty thousand or more. 
(5) The term "city" means (A) any unit of general local gov-
ernment which is classified as a municipality by the United States 
Bureau of the Census or (B) any other unit of general local 
government which is a town or township and which, in the deter-
mination of the Secretary, (i) possesses powers and performs 
functions comparable to those associated with municipalities, (ii) 
is closely settled, and (iii) contains within its boundaries no 
incorporated places as defined by the United States Bureau of 
the Census. 
(6) The term "urban county" means any county within a met-
ropolitan area which (A) is authorized under State law to under-
take essential community development and housing assistance 
activities in its unincorporated areas, if any, which are not units 
of general local government, and (B) has a combined pop-
ulation of two hundred thousand or more (excluding the popula-
tion of metropolitan cities therein) in such unincorporated areas 
and in its included units of general local government (i) in which 
it has authority to undertake essential community development 
and housing assistance activities and which do not elect to have 
their population excluded or (ii) with which it has entered into 
cooperation agreements to undertake or to assist in the under-
taking of essential community development and housing assist-
ance activities. 
(7) The term "population" means total resident population 
based on data compiled by the United States Bureau of the Census 
and referable to the same point or period in time. 
(8) The term "extent of poverty" means the number of persons 
whose incomes are below the poverty level. Poverty levels shall be 
determined by the Secretary pursuant to criteria provided by the 
Office of Management and Budget, taking into account and mak-
ing adjustments, if feasible and appropriate and in the sole dis-
cretion of the Secretary, for regional or area variations in income 
and cost of living, and shall be based on data referable to the 
same point or period in time. 
(9) The term "extent of housing overcrowding" means the 
number of housing units with 1.01 or more persons per room based 
on data compiled by the United States Bureau of the Census and 
referable to the same point or period in time. 
(10) The term "Federal grant-in-aid program" means a pro-
gram of Federal financial assistance other than loans and other 
than the assistance provided by this title. 
(11) The term "program period" means the period beginning 
January 1, 1975, and ending June 30, 1975, and the period cover-
ing each fiscal year thereafter. 
(12) The term "Community Development Program" means a 
program described in section 104(a) (2). 
(13) The term "Secretary" means the Secretary of Housing 
and Urban Development. 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
637 
(b) Where appropriate, the definitions in subsection (a) shall be 
based, with respect to any fiscal year, on the most recent data compiled 
by the United States Bureau of the Census and the latest published 
reports of the Office of Management and Budget available ninety days 
prior to the beginning of such fiscal year. The Secretary may by regu-
lation change or otherwise modify the meaning of the terms defined 
in subsection (a) in order to reflect any technical change or modifica-
tion thereof made subsequent to such date by the United States Bureau 
of the Census or the Office of Management and Budget. 
(c) One or more public agencies, including existing local public 
agencies, may be designated by the chief executive ofiicer of a State 
or a unit of general local government to undertake a Community 
Development Program in whole or in part. 
AUTHORIZATION TO MAKE GRANTS 
SEC. 103. (a) (1) The Secretary is authorized to make grants to ^e*IoTmTnf 
Pra^^" 
States and units of general local government to help finance Com- grams. 
munity Development Programs approved in accordance with the 
'^^ use 5303. 
provisions of this title. The Secretary is authorized to incur obliga-
tions on behalf of the United States in the form of grant agreements 
or otherwise in amounts aggregating such sum, not to exceed 
$8,400,000,000, as may be approved in an appropriation Act. The 
amount so approved shall become available for obligation on Janu-
ary 1, 1975, and shall remain available until obligated. There are 
authorized to be appropriated for liquidation of the ohligations 
incurred under this subsection not to exceed $2,500,000,000 prior to the 
close of the fiscal year 1975, which amount may be increased to not to 
exceed an aggregate of $5,450,000,000 prior to the close of the fiscal 
year 1976, and to not to exceed an aggregate of $8,400,000,000 prior to 
the close of the fiscal year 1977. Subject to the limitations contained in 
the preceding sentence, appropriations for— 
(A) grants under title VII of the Housing Act of 1961; 
(B) grants under sections 702 and 708 of the Housing and 
Urban Development Act of 1965; and 
(C) supplemental grants under title I of the Demonstration 
Cities and Metropolitan Development Act of 1966, 
may be used, to the extent not otherwise obligated prior to January 1, 
1975, for the liquidation of contracts entered into pursuant to this 
section. 
(2) Of the amounts approved in appropriation Acts pursuant to 
paragraph (1), $50,000,000 for each of the fiscal years 1975 and 1976 
shall be added to the amount available for allocation under section 
106(d) and shall not be subject to the provisions of section 107. 
(b) In addition to the amounts made available under subsection 
(a), and for the purpose of facilitating an orderly transition to the 
program authorized under this title, there are authorized to be appro-
priated not to exceed $50,000,000 for each of the fiscal years 1975 
and 1976, and not to exceed $100,000,000 for the fiscal year 1977, 
for grants under this title to units of general local government having 
urgent community development needs which cannot be met through 
the operation of the allocation provisions of section 106. 
(c) Sums appropriated pursuant to this section shall remain avail-
able until expended. 
(d) To assure program continuity and orderly planning, the Sec-
retary shall submit to the Congress timely requests for additional 
authorizations for the fiscal years 1978 through 1980. 
42 
42 
3103 
42 
use 
use 
• 
use 
1500. 
3102, 
3301. 
638 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
APPLICATION AND REVIEW REQUIREMENTS 
42 use 5304. 
^^^^ -
j
^
Q
^ ^g^^ ]
y
q
-
Q grajit may be made pursuant to section 106 unless 
an application shall have been submitted to the Secretary in which 
the applicant— 
(1) sets forth a summary of a three-year community develop-
ment plan which identifies community development needs, dem-
onstrates a comprehensive strategy for meeting those needs, and 
specifies both short- and long-term community development 
objectives which have been developed in accordance with area-
wide development planning and national urban growth policies; 
(2) formulates a program which (A) includes the activities 
to be undertaken to meet its community development needs and 
objectives, together with the estimated costs and general location 
of such activities, (B) indicates resources other than those 
provided under this title which are expected to be made avail-
able toward meeting its identified needs and objectives, and (C) 
takes into account appropriate environmental factors; 
(3) describes a program designed to— 
(A) eliminate or prevent slums, blight, and deterioration 
where such conditions or needs exist; and 
(B) provide improved community facilities and public 
improvements, including the provision of supporting health, 
social, and similar services where necessary and appropriate; 
(4) submits a housing assistance plan which— 
(A) accurately surveys the condition of the housing stock 
in the community and assesses the housing assistance needs of 
lower-income persons (including elderly and handicapped 
persons, large families, and persons displaced or to be dis-
placed) residing in or expected to reside in the community, 
(B) specifies a realistic annual goal for the number of 
dwelling units or persons to be assisted, including (i) the rela-
tive proportion of new, rehabilitated, and existing dwelling 
units, and (ii) the sizes and types of housing projects and 
assistance best suited to the needs of lower-income persons 
in the community, and 
(C) indicates the general locations of proposed housing 
for lower-income persons, with the objective of (i) further-
ing the revitalization of the community, including the res-
toration and rehabilitation of stable neighborhoods to the 
maximum extent possible, (ii) promoting greater choice of 
housing opportunities and avoiding undue concentrations of 
assisted persons in areas containing a high proportion of low-
income pei-sons, and (iii) assuring the availability of public 
facilities and services adequate to serve proposed housing 
projects; 
(5) provides satisfactory assurances that the program will be 
conducted and administered in conformity with Public Law 
42 u s e 2000a 
note 
B-352 and Public Law 90-284; and 
18USC245. 
(6) provides satisfactory assurances that, prior to submission 
of its application, it has (A) provided citizens with adequate 
information concerning the amount of funds available for 
proposed community development and housing activities, the 
range of activities that may be undertaken, and other important 
program rec[uirements, (B) held public hearings to obtain the 
views of citizens on community development and housing needs, 
and (C) provided citizens an adequate opportunity to participate 
in the development of the application; but no part of this para-
graph shall be construed to restrict the responsibility and author-
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
639 
ity of the applicant for the development of the application and 
the execution of its Community Development Program. 
(b) (1) Not more than 10 per centum of the estimated costs referred 
to m subsection (a) (2) which are to be incurred during any contract 
period may be designated for unspecified local option activities which 
are eligible for assistance under section 105(a) or for a contingency 
account for activities designated by the applicant pursuant to subsec-
tion (a)(2). 
(2) Any grant under this title shall be made only on condition that 
the applicant certify to the satisfaction of the Secretary that its Com-
munity Development Program has been developed so as to give 
maximum feasible priority to activities which will benefit low- or 
moderate-income families or aid in the prevention or elimination of 
slums or blight. The Secretary may also approve an application 
describing activities which the applicant certifies and the Secretary 
determines are designed to meet other community development needs 
having a particular urgency as specifically described in the application. 
(3) The Secretary may waive all or part of the requirements con- 
waiver. 
tained in paragraphs (1), (2), and (3) of subsection (a) if (A) the 
application for assistance is in behalf of a locality having a population 
of less than 25,000 according to the most recent data compiled by the 
Bureau of the Census which is located either (i) outside a standard 
metropolitan statistical area, or (ii) inside such an area but outside 
an "urbanized area"' as defined by the Bureau of the Census (or as such 
urbanized area. 
definition is modified by the Secretary for purposes of this title), (B) 
the application relates to the first community development activity 
to be carried out by such locality with assistance under this title, (C) 
the assistance requested is for a single development activity under this 
title of a type eligible for assistance under title VII of the Housing 
Act of 1961 or title VII of the Housing and Urban Development Act 
^^ "^^ ^^°°-
of 1965, and (D) the Secretary determines that, having regard to the 
42 use sioi. 
nature of the activity to be carried out, such waiver is not inconsistent 
with the purposes of this title. 
(4) The Secretary may accept a certification from the applicant that 
it has complied with the requirements of paragraphs (5) and (6) of 
subsection (a). 
(c) The Secretary shall approve an application for an amount which 
does not exceed the amount determined in accordance with section 
108(a) unless— 
(1) on the basis of significant facts and data, generally avail-
able and pertaining to community and housing needs and objec-
tives, the Secretary determines that the applicant's description of 
such needs and objectives is plainly inconsistent with such facts 
or data; or 
(2) on the basis of the application, the Secretary determines 
that the activities to be undertaken are plainly inappropriate to 
meeting the needs and objectives identified by the applicant pur-
si^ant to subsection (a) ; or 
(3) the Secretary determines that the application does not 
comply with the requirements of this title or other applicable 
law or proposes activities which are ineligible under this title. 
(d) Prior to the beginning of fiscal year 1977 and each fiscal year rejor'/'submluai 
thereafter, each grantee shall submit to the Secretary a performance to secretary. 
report concerning the activities carried out pursuant to this title, 
together with an assessment by the grantee of the relationship of those 
activities to the objectives of this title and the needs and objectives 
identified in the grantee's statement submitted pursuant to subsection 
Audits and 
^ 
^ 
, 
J 
_ __ 
_ _ 
n 
reviews and audits as may be necessary or appropriate to determine 
(a). The Secretary shall, at least on an annual basis, make such reviews 
42 use 3331. 
640 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
whether the grantee has carried out a program substantially as 
described in its application, whether that program conformed to the 
requirements of this title and other applicable laws, and whether the 
applicant has a continuing capacity to carry out in a timely manner 
the approved Community Development Program. The Secretary may 
make appropriate adjustments in the amount of the annual grants in 
accordance with his findings pursuant to this subsection. 
(e) No grant may be made under this title unless the application 
therefor has been submitted for review and comment to an areawide 
agency under procedures establisihed by the President pursuant to 
title II of the Demonstration Cities and Metropolitan Development 
Act of 1966 and title IV of the Intergovernmental Cooperation Act 
42 use 4231. 
of 1968. 
Approval date. 
(f) ^ ^ application subject to subsection (c), if submitted after any 
date established by the Secretary for consideration of applications, 
shall be deemed approved within 75 days after receipt unless the Sec-
retary informs the applicant of specific reasons for disapproval. Sub-
sequent to approval of the application, the amount of the grant may 
be adjusted in accordance with the provisions of this title. 
G
A
G audit. 
^g^ Insofar as they relate to funds provided under this title, the 
financial transactions of recipients of such funds may be audited by the 
General Accounting Office under such rules and regulations as may be 
prescribed by the Comptroller General of the United States. The rep-
resentatives of the General Accounting Office shall have access to all 
books, accounts, records, reports, files, and other papers, things, or 
property belonging to or in use by such recipients pertaining to such 
financial transactions and necessary to facilitate the audit. 
Environmental 
(h)(1) In Order to assurc that the policies of the National 
42 use 4321 
Environmental Policy Act of 1969 are most effectively implemented m 
"°te- 
connection with the expenditure of funds under this title, and to assure 
to the public undiminished protection of the environment, the Secre-
tary, in lieu of the environmental protection procedures otherwise 
applicable, may under regulations provide for the release of funds for 
particular projects to applicants who assume all of the responsibilities 
for environmental review, decisionmaking, and action pursuant to 
such Act that would apply to the Secretary were he to undertake such 
projects as Federal projects. The Secretary shall issue regulations 
to carry out this subsection only after consultation with the Council 
on Environmental Quality. 
(2) The Secretary shall approve the release of funds for projects 
subject to the procedures authorized by this subsection only if, at least 
fifteen days prior to such approval and prior to any commitment of 
funds to such projects other than for purposes authorized by section 
105(a) (12) or for environmental studies, the applicant has submitted 
to the Secretary a request for such release accompanied by a certifica-
tion which meets the requirements of paragraph (3). The Secretary's 
approval of any such certification shall be deemed to satisfy his respon-
sibilities under the National Environmental Policy Act insofar as 
those responsibilities relate to the applications and releases of funds 
for projects to be carried out pursuant thereto which are covered by 
such certification. 
(3) A certification imder the procedures authorized by this sub-
section shall— 
(A) be in a form acceptable to the Secretary, 
(B) be executed by the chief executive officer or other officer of 
the applicant qualified under regulations of the Secretary, 
^C) specify that the applicant has fully carried out its respon-
sibilities as described under paragraph (1) of this subsection, and 
(D) specify that the certifying officer (i) consents to assume 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
641 
42 u s e 4321 
note. 
the status of a responsible Federal official under the National 
Environmental Policy Act of 1969 insofar as the provisions of 
such Act apply pursuant to paragraph (1) of this subsection, and 
(ii) is authorized and consents on behalf of the applicant and 
himself to accept the jurisdiction of the Federal courts for the 
purpose of enforcement of his responsibilities as such an official. 
COMMUNITY DEVELOPMENT PROGRAM ACTIVITIES ELIGIBLE FOR 
ASSISTANCE 
SEC. 105. (a) A Community Development Program assisted under 
42 use sao;;. 
this title may include only— 
(1) the acquisition of real property (including air rights, 
water rights, and other interests therein) which is (A) blighted, 
deteriorated, deteriorating, undeveloped, or 
inappropriately 
developed from the standpoint of sound community development 
and growth; (B) appropriate for rehabilitation or conservation 
activities; (C) appropriate for the preservation or restoration of 
historic sites, the beautification of urban land, the conservation 
of open spaces, natural resources, and scenic areas, the provision 
of recreational opportunities, or the guidance of urban develop-
ment; (D) to be used for the provision of public works, facilities, 
and improvements eligible for assistance under this title; or 
(E) to be used for other public purposes; 
(2) the acquisition, construction, reconstruction, or installation 
of public works, facilities, and site or other improvements— 
including neighborhood facilities, senior centers, historic proper-
ties, utilities, streets, street lights, water and sewer facilities, foun-
dations and platforms for air rights sites, pedestrian m.alls and 
walkways, and parks, playgrounds, and recreation facilities, flood 
and drainage facilities in cases where assistance for such facilities 
under other Federal laws or programs is determined to be unavail-
able, and parking facilities, solid waste disposal facilities, and 
fire protection services and facilities which are located in or which 
serve designated community development areas; 
(8) code enforcement in detorioratod or deteriorating areas i" 
which such enforcement, together with public improvements and 
services to be provided, may be expected to arrest the decline of 
the area; 
(4) clearance, demolition, removal, and rehabilitation of build-
ings and improvements (including interim assistance and financ-
ing rehabilitation of privately owned properties when incidental 
to other activities) ; 
(5) special projects directed to the removal of material and 
architectural barriers which restrict the mobility and accessibility 
of elderly and handicapped persons; 
(6) payments to housing owners for losses of rental income 
incurred in holding for temporary periods housing units to be 
utilized for the relocation of individuals and families displaced 
by program activities under this title; 
(7) disposition (through sale, lease, donation, or otherwise) of 
any real property acquired pursuant to this title or its retention 
for public purposes; 
(8) provision of public services not otherwise available in areas 
where other activities assisted under this title are being carried 
out in a concentrated manner, if such services are determined to 
be necessary or appropriate to support such other activities and 
if assistance in providing or securing such services under other 
applicable Federal laws or programs has been applied for and 
note. 
642 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
denied or not made available within a reasonable period of time, 
and if such services are directed toward (A) improving the 
community's public services and facilities, including those con-
cerned with the employment, economic development, crime 
prevention, child care, health, drug abuse, education, welfare, or 
recreation needs of persons residing in such areas, and (B) 
coordinating public and private development programs; 
(9) payment of the non-Federal share required in connection 
with a Federal grant-in-aid program undertaken as part of the 
Community Development Program; 
(10) payment of the cost of completing a project funded under 
42 use 1441 
title I of the Housing Act of 1949; 
(11) relocation payments and assistance for 
individuals, 
families, businesses, organizations, and farm operations displaced 
by activities assisted under this title; 
(12) activities necessary (A) to develop a comprehensive com-
munity development plan, and (B) to develop a policy-planning-
management capacity so that the recipient of assistance under 
this title may more rationally and effectively (i) determine its 
needs, (ii) set long-term goals and short-term objectives, (iii) 
devise programs and activities to meet these goals and objectives, 
(iv) evaluate the progress of such programs in accomplishing 
these goals and objectives, and (v) carry out management, coordi-
nation, and monitoring of activities necessary for effective plan-
ning implementation; and 
(13) payment of reasonable administrative costs and carrying 
charges related to the planning and execution of community devel-
opment and housing activities, including the provision of informa-
tion and resources to residents of areas in which community 
development and housing activities are to be concentrated with 
respect to the planning and execution of such activities. 
(b) Upon the request of the recipient of a grant under this title, 
the Secretary may agree to perform administrative services on a reim-
bursable basis on behalf of such recipient in connection with loans or 
grants for the rehabilitation of properties as authorized under sub-
section (a)(4). 
42 u s e 5306. 
ALLOCATION AND DISTRIBUTION OF FUNDS 
SEC. 106. (a) Of the amount approved in an appropriation Act under 
section 103(a) for grants in any year (excluding the amount provided 
for use in accordance with sections 103(a) (2) and 107), 80 per centum 
shall be allocated by the Secretary to metropolitan areas. Except as 
provided in subsections (c) and (e), each metropolitan city and urban 
county shall, subject to the provisions of section 104 and except as 
otherwise specifically authorized, be entitled to annual grants from 
such allocation in an aggregate amount not exceeding the greater of its 
basic amount computed pursuant to paragraph (2) or (3) of subsection 
(b) or its hold-harmless amount computed pursuant to subsection (g). 
(b) (1) The Secretary shall determine the amount to be allocated to 
all metropolitan cities which shall be an amount that bears the same 
ratio to the allocation for all metropolitan areas as the average of the 
ratios between— 
(A) the population of all metropolitan cities and the popula-
tion of all metropolitan areas; 
(B) the extent of poverty in all metropolitan cities and the 
extent of poverty in all metropolitan areas; and 
(C) the extent of housing overcrowding in all metropolitan 
cities and the extent of housing overcrowding in all metropolitan 
areas* 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
643 
(2) From the amount allocated to all metropolitan cities the Secre- ^^^^^^ ^''^"* 
tary shall determine for each metropolitan city a basic grant amount ^"°"" ' 
which shall equal an amount that bears the same ratio to the allocation 
for all metropolitan cities as the average of the ratios between— 
(A) the population of that city and the population of all 
metropolitan cities; 
(B) the extent of poverty in that city and the extent of poverty 
in all metropolitan cities; and 
(C) the extent of housing overcrowding in that city and the 
extent of housing overcrowding in all metropolitan cities. 
(3) The Secretary shall determine the basic grant amount of each 
urban county by— 
(A) calculating the total amount that would have been allo-
cated to metropolitan cities and urban counties together under 
paragraph (1) of this subsection if data pertaining to the popu-
lation, extent of poverty, and extent of housing overcrowding in 
all urban counties were included in the numerator of each of the 
fractions described in such paragraph; and 
(B) determining for each county the amount which bears the 
same ratio to the total amount calculated under subparagraph (A) 
of this paragraph as the average of the ratios between— 
(i) the population of that urban county and the popula-
tion of all metropolitan cities and urban counties; 
(ii) the extent of poverty in that urban county and the 
extent of poverty in all metropolitan cities and urban coun-
ties; and 
(iii) the extent of housing overcrowding in that urban 
county and the extent of housing overcrowding in all metro-
politan cities and urban counties. 
(4) In determining the average of ratios under paragraphs (1), (2), 
and (3), the ratio involving the extent of poverty shall be counted 
twice. 
(5) In computing amounts or exclusions under this section with 
respect to any urban county there shall be excluded units of general 
local government located in the county (A) which receive hold-harm-
less grants pursuant to subsection (h), or (B) the populations of 
which are not counted in determining the eligibility of the urban 
county to receive a grant under this subsection. 
(c) During the first three years for which funds are approved for 
distribution to a metropolitan city or urban county under this section, 
the basic grant amount of such city or county as computed under sub-
section (b) shall be adjusted as provided in this subsection if the 
amount so computed for the first such year exceeds the city's or 
county's hold-harmless amount as determined under subsection (g). 
Such adjustment shall be made so that— 
(1) the amount for the first year does not exceed one-third of 
the full basic grant amount computed under subsection (b), or 
the hold-harmless amount, whichever is the greater, 
(2) the amount for the second year does not exceed two-thirds 
of the full basic grant amount computed under subsection (b), or 
the hold-harmless amount, or the amount allowed under para-
graph (1) of this subsection, whichever is the greatest, and 
(3) the amount for the third year does not exceed the full basic 
grant amount computed under subsection (b). 
(d) Any portion of the amount allocated to metropolitan areas 
under the first sentence of subsection (a) which remains after the 
allocation of grants to metropolitan cities and urban counties in 
accordance with subsections (b) and (c) and any amounts added in 
Reallocation. 
644 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
accordance with the provisions of section 103(a) (2) shall be allocated 
by the Secretary— 
(1) first, for grants to metropolitan cities, urban counties, and 
other units of general local government within metropolitan areas 
to meet their hold-harmless needs as determined under subsections 
(g) and (h); and 
(2) second, for grants to units of general local government 
(other than metropolitan cities and urban counties) and States 
for use in metropolitan areas, allocating for each such metropoli-
tan area an amount which bears the same ratio to the allocation 
for all metropolitan areas available under this paragraph as the 
average of the ratios between— 
(A) the population of that metropolitan area and the pop-
ulation of all metropolitan areas, 
(B) the extent of poverty in that metropolitan area and the 
extent of poverty in all metropolitan areas, and 
(C) the extent of housing overcrowding in that metropoli-
tan area and the extent of housing overcrowding in all 
metropolitan areas. 
In determining the average of ratios under paragraph (2), the ratio 
involving the extent of poverty shall be counted twice; and in comput-
ing amounts under such paragraph there shall be excluded any metro-
politan cities, urban counties, and units of general local government 
which receive hold-harmless grants pursuant to subsection (h). 
(e) Any amounts allocated to a metropolitan city or urban county 
pursuant to the preceding provisions of this section which are not 
applied for during a program period or which are not approved by 
the Secretary, and any other amounts allocated to a metropolitan area 
which the Secretary determines, on the basis of the applications and 
other evidence available, are not likely to be fully obligated during 
such program period, shall be reallocated during the same period for 
use by States, metropolitan cities, urban counties, or units of general 
local government, first, in any metropolitan area in the same State, and 
second, in any other metropolitan area. The Secretary shall review 
determinations under this subsection from time to time as appropriate 
with a view of assuring maximum use of all available funds in the 
period for which such funds were appropriated. 
(f) (1) Of the amount approved in an appropriation Act under 
section 108(a) for grants in any year (excluding the amount provided 
for use in accordance with sections 103(a) (2) and 107), 20 per centum 
shall be allocated by the Secretary— 
(A) first, for grants to units of general local government out-
side of metropolitan areas to meet their hold-harmless needs as 
determined under subsection (h) ; and 
(B) second, for grants to units of general local government out-
side of metropolitan areas and States for use outside of metro-
politan areas, allocating for the nonmetropolitan areas of each 
State an amount which bears the same ratio to the allocation avail-
able under this subparagraph for the nonmetropolitan areas of all 
States as the average of the ratios between— 
(i) the population of the nonmetropolitan areas of that 
State and the population of the nonmetropolitan areas of all 
the States, 
(ii) the extent of poverty in the nonmetropolitan areas of 
that State and the extent of poverty in the nonmetropolitan 
areas of all the States, and 
(iii) the extent of housing overcrowding in the nonmetro-
politan areas of that State and the extent of housing over-
crowding in the nonmetropolitan areas of all the States. 
Hold-harmless 
amount. 
42 u s e 
1450. 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
645 
In determining the average of ratios under subparagraph (B), the 
ratio involving the extent of poverty shall be counted twice; and in 
computing amounts under such subparagraph there shall be excluded 
units of general local government which receive hold-harmless grants 
pursuant to subsection (h). 
(2) Any amounts allocated to a unit of general local government 
under paragraph (1) which are not applied for during a program 
period or which are not approved by the Secretary, and any amounts 
allocated to the nonmetropolitan areas of a State under paragraph 
(1) (B) which the Secretary determines, on the basis of applications 
and other evidence available, are not likely to be fully obligated during 
such period, shall be reallocated as soon as practicable during the same 
period to the nonmetropolitan areas of other States. The Secretary 
shall review determinations under this paragraph from time to time 
with a view to assuring maximum use of all available funds in the 
program period for which such funds were appropriated. 
(g) (1) The full hold-harmless amount of each metropolitan city 
or urban county shall be the sum of (i) the sum of the average during 
the five fiscal years ending prior to July 1, 1972, of (1) commitments 
for grants (as determined by the Secretary) pursuant to part A of 
title I of the Housing Act of 1949; (2) loans pursuant to section 312 
of the Housing Act of 1964; (3) grants pursuant to sections 702 
"
^
^ use 1452b. 
and 703 of the Housing and Urban Development Act of 1965; (4) 3/0^3"^^ ^^°2. 
loans pursuant to title IT of the Housing Amendments of 1955; and 
42 use 1491. 
(5) grants pursuant to title VII of the Housing Act of 1961; and (ii) 
^2 use 1500. 
the average annual grant, as determined by the Secretary, made in 
accordance with part B of title I of the Housing Act of 1949 during 
^2 use 1469. 
the fiscal years ending prior to July 1, 1972, or during the fiscal year 
1973 in the case of a metropolitan city or urban county which first 
received a grant under part B of such title in such fiscal year. In 
the case of a metropolitan city or urban county which has participated 
in the program authorized under section 105 of the Demonstration 
Cities and Metropolitan Development Act of 1966 and which has been 
"
^
^ use 3305, 
funded or extended in the fiscal year 1973 for a period ending after 
June 30, 1973, determinations of the hold-harmless amount of such 
metropolitan city or urban county for the following specified years 
shall be made so as to include, in addition to the amounts specified 
in clauses (i) and (ii) of the preceding sentence, the following per-
centages of the average annual grant, as determined by the Secretary 
made in accordance with such section during fiscal years ending prior 
to July 1,1972— 
(A) 100 per centum for each of a number of years which, when 
added to the number of funding years for which the city or county 
received grants under such section 105, equals five; 
(B) 80 per centum for the year immediately following year five 
as determined pursuant to clause (A), 
(C) 60 per centum for the year immediately following the year 
provided for in clause (B) ; and 
(D) 40 per centum for the year immediately following the year 
provided for in clause (C). 
For the purposes of this paragraph the average annual grant under 
part B of title I of the Housing Act of 1949 or under section 105 of the 
Demonstration Cities and Metropolitan Development Act of 1966 shall 
be established by dividing the total amount of grants made to a par-
ticipant under the program by the number of months of program 
activity for which funds were authorized and multiplying the result by 
twelve. 
38-194 n - 7fi - 44 T>t 1 
646 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
(2) During the fiscal years 1975, 1976, and 1977, the hold-harmless 
amount of any metropolitan city or urban county shall be the full 
amount computed for the city or county in accordance with paragraph 
(1). In the fiscal years 1978, 1979, and 1980, if such amount is greater 
than the basic grant amount of the metropolitan city or urban county 
for that year, as computed under subsection (b) (2) or (3), it shall be 
reduced so that—• 
(i) in the fiscal year 1978, the excess of the hold-harmless 
amount over the basic grant amount shall equal two-thirds of the 
difference between the amount computed under paragraph (1) and 
the basic grant amount for such year, 
(ii) in the fiscal year 1979, the excess of the hold-harmless 
amount over the basic grant amount shall equal one-third of the 
difference between the amount computed under paragraph (1) 
and the basic grant amount for such year, and 
(iii) in the fiscal year 1980, there shall be no excess of the hold-
harmless amount over the basic grant amount, 
(h) (1) Any unit of general local government which is not a metro-
politan city or urban county shall, subject to the provisions of section 
104 and except as otherwise specifically authorized, be entitled to 
grants under this title for any year in an aggregate amount at least 
equal to a hold-harmless amount as computed under the provisions of 
subsection (g) (1) if, during the five-fiscal-year period specified in the 
first sentence of subsection (g)(1) (or during the fiscal year 1973 in the 
case of a locality which first received a grant for a neighborhood 
development program in that year), one or more urban renewal proj-
ects, code enforcement programs, neighborhood development pro-
grams, or model cities programs were being carried out by such unit of 
general local government pursuant to commitments for assistance 
entered into during such period under title I of the Housing Act of 
1949 or title I of the Demonstration Cities and Metropolitan Devel-
opment Act of 1966. 
(2) In the fiscal years 1978, 1979, and 1980, in determining the hold-
harmless amount of units of general local government qualifying under 
this subsection, the second sentence of subsection (g) (2) shall be 
applied as though such units w ere metropolitan cities or urban counties 
with basic grant amounts of zero. 
(i) In excluding the population, poverty, and housing overcrowd-
ing data of units of general local government which receive a hold-
harmless grant pursuant to subsection (h) from the computations 
described in subsections (b)(5), (d), and (f) of this section, the Sec-
retary shall exclude only two-thirds of such data for the fiscal year 
1978 and one-third of such data for the fiscal year 1979. 
(j) Any unit of general local government eligible for a hold-harm-
less grant pursuant to subsection (h) may, not later than thirty days 
prior to the beginning of any program period, irrevocably waive its 
eligibility under such subsection. In the case of such a waiver the unit 
of general local government shall not be excluded from the computa-
tions described in subsections (b)(5), (d) and (f) of this section. 
(k) The Secretary may fix such qualification or submission dates 
as he determines are necessary to permit the computations and deter-
minations required by this section to be made in a timely manner, and 
all such computations and determinations shall be final and conclusive. 
c^^^esV° 
(^) -^°* ^^*®^ *^^^ March 31,1977, the Secretary shall make a report 
to the Congress setting forth such recommendations as he deems advis-
able, in furtherance of the purposes and policy of this title, for modi-
fying or expanding the provisions of this section relating to the 
method of funding and the allocation of funds and the determination 
42 
use 1450. 
42 
use 3301. 
Waiver of 
eligibility. 
88 STAT.] 
PUBLIC LAW 93-383-AUG. 22, 1974 
647 
of the basic grant entitlement, and for the application of such provi-
sions in the further distribution of funds under this title. In making 
study. 
this report, the Secretary shall conduct a study to determine how 
funds authorized under this title can be distributed in accordance with 
community development needs, objectives, and capacities, measured 
to the maximum extent feasible by objective standards. 
DISCRETIONARY 
F U N D 
SEC. 107. (a) Of the total amount of authority to enter into con- 
^2 use 5307. 
tracts approved in appropriation Acts under section 103(a) (1) for 
each of the fiscal years 1975, 1976, and 1977, an amount equal to 2 per 
centum thereof shall be reserved and set aside in a special discre-
tionary fund for use by the Secretary in making grants (in addition 
to any other grants which may be made under this title to the same 
entities or for the same purposes) — 
(1) in behalf of new communities assisted under title VII of 
the Housing and Urban Development Act of 1970 or title IV of 
"
^
^ use 4501 
the Housing and Urban Development Act of 1968; 
"°42'usc 3901 
(2) to States and units of general local government which join note. 
in carrying out housing and community development programs 
that are area 
wide in scope; 
(3) in Guam, the Virgin Islands, American Samoa, and the 
Trust Territory of the Pacific Islands; 
(4) to States and units of general local government for the 
purpose of demonstrating innovative community development 
projects; 
(5) to States and units of general local government for the pur-
pose of meeting emergency community development needs caused 
by federally recognized disasters; and 
(6) to States and units of general local government where the 
Secretary deems it necessary to correct inequities resulting from 
the allocation provisions of section 106. 
(b) Not more than one-fourth of the total amount reserved and set 
aside in the special discretionary fund under subsection (a) for each 
year may be used for grants to meet emergency disaster needs under 
subsection (a) (5). 
(c) Amounts reserved and set aside in the special discretionary fund 
under subsection (a) in any fiscal year but not used in such year shall 
remain available for use in accordance with subsections (a) and (b) 
in subsequent fiscal years. 
GUARANTEE OF LOANS FOR ACQUISITION OF PROPERTY 
SEC. 108. (a) The Secretary is authorized, upon such terms and 
conditions as he may prescribe, to guarantee and make commitments 
to guarantee the notes or other obligations issued by units of general 
local government, or by public agencies designated by such units of 
general local government, for the purpose of financing the acquisition 
or assembly of real property (including such expenses related thereto 
as the Secretary may permit by regulation) to serve or be used in 
carrying out activities which are eligible for assistance under section 
105 and are identified in the application under section 104, and with 
respect to which grants have been or are to be made under section 103, 
but no such guarantee shall be issued in behalf of any agency designed 
to benefit, in or by the flotation of any issue, a private individual or 
corporation. 
(b) No guarantee or commitment to guarantee shall be made with 
42 u s e 5308. 
648 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
respect to any unit of general local government or public agency 
designated by any such unit of general local government unless— 
(1) the Secretary, from sums approved in appropriation Acts 
and allocated for obligation to the unit of general local govern-
m^ent pursuant to sections 106 and 107, shall have reserved and 
withheld, for the purpose of paying the guaranteed obligations 
(including interest), an amount which is at least equal to 110 per 
centum of the difference between the cost of acquiring the land and 
related expenses and the estimated proceeds to be derived from 
the sale or other disposition of the land, as determined or approved 
by the Secretary, which amount may subsequently be increased 
by the Secretary to the extent he determines such increase is nec-
essary or appropriate because of any unanticipated, major reduc-
tion in such estimated disposition proceeds; 
(2) the unit of general local government shall have given to the 
Secretary, in a form acceptable to him, a pledge of its full faith 
and credit, or a pledge of revenues approved by the Secretary, 
for the repayment of so much of any amount required to be paid 
by the United States pursuant to any guarantee under this section 
as is equal to the difference between the principal amount of the 
guaranteed obligations and interest thereon and the amount which 
is to be reserved and withheld under paragraph (1); and 
(3) the unit of general local government has pledged to the 
repayment of any amounts which are required to be paid by the 
United States pursuant to its guarantee under this section, and 
which are not otherwise fully repaid Avhen due pui'suant to para-
graph (1) and (2), the proceeds of any grants for which such 
unit of general local government may become eligible under this 
title. 
(c) The full faith and credit of the ITnited States is pledged to the 
payment of all guarantees made under this section. Any such guaran-
tee made by the Secretary shall be conclusive evidence of the eligibility 
of the obligations for such guarantee with respect to principal and 
interest, and the validity of any such guarantee so made shall be incon-
testable in the hands of a holder of the guaranteed obligations. 
(d) The Secretary may issue obligations to the Secretary of the 
Treasury in an amount outstanding at any one time sufficient to enable 
the Secretary to carry out his obligations under guarantees authorized 
by this section. The obligations issued under this subsection shall have 
such maturities and bear such rate or rates of interest as shall be deter-
mined by the Secretary of the Treasury. The Secretary of the Treas-
ury is authorized and directed to purchase any obligations of the 
Secretary issued under this sex^tion, and for such purposes is authorized 
to use as a public debt transaction the proceeds from the sale of any 
securities issued under the Second Liberty Bond Act, as now or here-
after in force, and the purposes for which such securities may be issued 
under such Act are extended to include the purchases of the Secre-
tary's obligations hereunder. 
(e) Obligations guaranteed under this section may, at the option of 
the issuing unit of general local government or designated agency, be 
subject to Federal taxation as provided in subsection (g). In the event 
that taxable obligations are issued and guaranteed, the Secretary is 
authorized to make, and to contract to make, grants to or on behalf 
of the issuing unit of general local government or public agency to 
cover not to exceed 30 per centum of the net interest cost (including 
such servicing, underwriting, or other costs as may be specified in 
regulations of the Secretary) to the borrowing unit or agency of such 
obligations. 
31 use 774. 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
649 
(f) Section 3689 of the Revised Statutes, as amended (31 U.S.C. 
711), is amended by adding at the end thereof a new paragraph as 
follows: 
"(22) For payments required from time to time under contracts 
entered into pursuant to section 108 of the Housing and Community 
Development Act of 1974 for payment of interest costs on obligations 
guaranteed by the Secretary of Housing and Urban Development 
under that section." 
(g) With respect to any obligation issued by a unit of general local 
government or designated agency which such unit or agency has 
elected to issue as a taxable obligation pursuant to subsection (e) of 
this section, the interest paid on such obligation shall be included in 
gross income for the purpose of chapter 1 of the Internal Revenue 
Code of 1954. 
NONDISCRIMINATION 
42 u s e 5308. 
26 
seq. 
42 
use 
use 
1 et 
5309 
SEC. 109. (a) No person in the United States shall on the ground 
of race, color, national origin, or sex be excluded from participation in, 
be denied the benefits of, or be subjected to discrimination under any 
program or activity funded in whole or in part with funds made 
available under this title. 
(b) Whenever the Secretary determines that a State or unit of 
general local government which is a recipient of assistance under this 
title has failed to comply with subsection (a) or an applicable regula-
tion, he shall notify the Governor of such State or the chief executive 
officer of such unit of local government of the noncompliance and shall 
request the Governor or the chief executive officer to secure compliance. 
If within a reasonable period of time, not to exceed sixty days, the 
Governor or the chief executive officer fails or refuses to secure 
compliance, the Secretary is authorized to (1) refer the matter to the 
Attorney General with a recommendation that an appropriate civil 
action be instituted; (2) exercise the powers and functions provided 
by title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) ; (3) 
exercise the powers and functions provided for in section 111(a) of 
this Act; or (4) take such other action as may be provided by law. 
(c) When a matter is referred to the Attorney General pursuant to 
subsection (b), or whenever he has reason to believe that a State 
government or unit of general local government is engaged in a pattern 
or practice in violation of the provisions of this section, the Attorney 
General may bring a civil action in any appropriate United States 
district 
court for such relief as may be appropriate, including 
injunctive relief. 
LABOR 
STANDARDS 
SEC. 110, All laborers and mechanics employed by contractors or 
'^^ use 5310. 
subcontractors in the performance of construction work financed in 
whole or in part with grants received under this title shall be paid 
wages at rates not less than those prevailing on similar construction in 
the locality as determined by the Secretary of Labor in accordance 
with the Davis-Bacon Act, as amended (40 U.S.C. 276a—276a-5) : 
Provided, 
That this section shall apply to the rehabilitation of 
residential property only if such property is designed for residential 
use for eight or more families. The Secretary of Labor shall have, with 
respect to such labor standards, the authority and functions set forth 
in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 
1267) and section 2 of the Act of June 13, 1934, as amended (48 Stat. 
^ use app. 
948; 40 U.S.C. 276(c)). 
4o use 276c. 
650 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
REMEDIES FOR NONCOMPLIANCE 
42 u s e 5311. 
Notice and 
SEC. 111. (a) If the Secretary finds after reasonable notice and 
hearing. 
Opportunity for hearing that a recipient of assistance under this title 
has failed to comply substantially with any provision of this title, the 
Secretary, until he is satisfied that there is no longer any such failure 
to comply, shall— 
(1) terminate payments to the recipient under this title, or 
(2) reduce payments to the recipient under this title by an 
amount equal to the amount of such payments which were not 
expended in accordance with this title, or 
(3) limit the availability of payments under this title to pro-
grams, projects, or activities not affected by such failure to comply. 
(b) (1) In lieu of, or in addition to, any action authorized by sub-
section (a), the Secretary may, if he has reason to believe that a recipi-
ent has failed to comply substantially with any provision of this title, 
refer the matter to the Attorney General of the United States with a 
recommendation that an appropriate civil action be instituted. 
(2) Upon such a referral the Attorney General may bring a civil 
action in any United States district court having venue thereof for 
such relief as may be appropriate, including an action to recover the 
amount of the assistance furnished under this title which was not 
expended in accordance with it, or for mandatory or injunctive relief. 
Judicial review. 
(c)(1) Auy recipient which receives notice under subsection (a) 
of the termination, reduction, or limitation of payments under this 
title may, Avithin sixty days after receiving such notice, file with the 
United States Court of Appeals for the circuit in which such State 
is located, or- in the United States Court of Appeals for the District 
of Columbia, a petition for review of the Secretary's action. The peti-
tioner shall forthwith transmit copies of the petition to the Secretary 
and the Attorney General of the United States, who shall represent 
the Secretarv in the litigation. 
(2) The Secretary shall file in the court record of the proceeding 
on which he based his action, as provided in section 2112 of title 28, 
United States Code. No objection to the action of the Secretary shall 
be considered by thex?ourt unless such objection has been urged before 
the Secretary. 
(3) The court shall have jurisdiction to affirm or modify the action 
of the Secretary or to set it aside in whole or in part. The findings of 
fact by the Secretary, if supported by substantial evidence on the 
record considered as a whole, shall be conclusive. The court may order 
additional evidence to be taken by the Secretary, and to be made part 
of the record. The Secretary may modify his findings of fact, or make 
new findings, by reason of the new evidence so taken and filed with 
the court, and he shall also file such modified or new findings, which 
findings with respect to questions of fact shall be conclusive if sup-
ported by substantial evidence on the record considered as a whole, 
and shall also file his recommendation, if any, for the modification or 
setting aside of his original action. 
(4) Upon the filing of the record with the court, the jurisdiction of 
the court shall be exclusive and its judgment shall l3e final, except that 
such judgment shall be subject to review by the Supreme Court of 
the United States upon writ of certiorari or certification as provided 
in section 1254 of title 28, United States Code. 
42 u s e 5312. 
USE OF GRANTS TO SETTI,^ OUTSTANDING URBAN RENEWAL LOANS 
SEC. 112. (a) The Secretary is authorized, notwithstanding any 
other provision of this title, to apply a portion of the grants, not to 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
651 
exceed 20 per centum thereof without the request of the i-ecipient, 
made or to be made under section 103(a) in any fiscal year pursuant 
to an allocation under section 106 to any unit of general local gov-
ernment toward payment of the principal of, and accrued interest on, 
any temporary loan made in connection with urban reneAval projects 
under title I of the Housing Act of 1949 being carried out within the 
'^2 use 1450. 
jurisdiction of such unit of general local government if— 
(1) the Secretary determines, after consultation with the local 
public agency carrying out the project and the chief executive of 
such unit of general local government, that the project cannot be 
completed without additional capital grants, or 
(2) the local public agency carrying out the project submits to 
the Secretary an appropriate request which is concurred in by 
the governing body of such unit of general local government. 
In determining the amounts to be applied to the payment of tem-
porary loans, the Secretary shall make an accounting for each project 
taking into consideration the costs incurred or to be incurred, the esti-
mated proceeds upon any sale or disposition of property, and the capi-
tal grants approved for the project. 
(b) Upon application by any local public agency carrying out an 
urban renewal project under title I of the Housing Act of 1949, which 
application is approved by the governing body of the unit of general 
local government in which the project is located, the Secretary may 
approve a financial settlement of such project if he finds that a surplus 
of capital grant funds after full repayment of temporary loan 
indebtedness will result and may authorize the unit of general local 
government to use such surplus funds, without deduction or offset, in 
accordance with the provisions of this title. 
REPORTING 
REQUIREMENTS 
SEC. 113. (a) Not later than 180 days after the close of each fiscal co^n^^resV° 
year in which assistance under this title is furnished, the Secretary 
42 usc'5313. 
shall submit to the Congress a report which shall contain— 
(1) a description of the progress made in accomplishing the 
objectives of this title; and 
(2) a summary of the use of such funds as approved by the 
Secretary during the preceding fiscal year. 
(b) The Secretary is authorized to require recipients of assistance 
under this title to submit to him such reports and other information 
as may be necessary in order for the Secretary to make the report 
required by subsection (a). 
42 u s e 5314. 
CONSULTATION 
SEC. 114. In carrying out the provisions of this title including the 
issuance of regulations, the Secretary shall consult with other Federal 
departments 
and 
agencies 
administering 
Federal 
grant-in-aid 
programs. 
INTERSTATE 
AGREEMENTS 
SEC. 115. The consent of the Congress is hereby given to any two or 
"
^
^ "^^ ^^^^' 
more States to enter into agreements or compacts, not in conflict with 
any law of the United States, for cooperative effort and mutual assist-
ance in support of community development planning and programs 
carried out under this title as they pertain to interstate areas and to 
localities within such States, and to establish such agencies, joint or 
otherwise, as they may deem desirable for making such agreements 
and compacts effective. 
652 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
TRANSITION PROVISIONS 
42 use 5316. 
42 use 3301. 
42 use 1450. 
42 use 3102, 
3103. 
42 use 1491, 
1500. 
42 use 1453. 
42 use 3311, 
42 use 1452b. 
Post, p. 729. 
42 u s e 5316. 
SEC. 116. (a) Except with respect to projects and programs for 
which funds have been previously committed, no new grants or loans 
shall be made after January 1, 1975, under (1) title I of the Demon-
stration Cities and Metropolitan Development Act of 1966, (2) title I 
of the Housing Act of 1949, (3) section 702 or section 703 of the Hous-
ing and Urban Development Act of 1965, (4) title I I of the Housing 
Amendments of 1955, or (5) title VII of the Housing Act of 1961. 
(b) To the extent that grants under title I of the Housing Act of 
1949 or title I of the Demonstration Cities and Metropolitan Develop-
ment Act of 1966 are payable from appropriations made for the fiscal 
year 1975, and are made with respect to a project or program being 
carried on in any unit of general local government which is eligible 
to receive a grant for such fiscal year under section 106 (a) or (h) of 
this Act, the amount of such grants made under title I of the Housing 
Act of 1949 or title I of the Demonstration Cities and Metropolitan 
Development Act of 1966 shall be deducted from the amount of grants 
which such unit of general local government is eligible to receive for 
the fiscal year 1975 under such section 106 (a) or (h). The deduction 
required by the preceding sentence shall be disregarded in determin-
ing the amount of grants made to any unit of general local govern-
ment that may be applied, pursuant to section 112 of this Act, to 
payment of temporary loans in connection with urban renewal proj-
ects under title I of the Housing Act of 1949. The amount of any 
appropriations made for the fiscal year 1975 which is used for grants 
so as to be subject to the provisions of this subsection relating to deduc-
tions shall be deemed to have been appropriated for grants pursuant 
to section 103(a) of this Act for such fiscal year for purposes of calcu-
lations under sections 106 and 107 of this Act. 
(c) The first sentence of section 103(b) of the Housing Act of 
1949 is amended by inserting before the period at the end thereof 
the following: ", and by such sums as may be necessary thereafter". 
(d)(1) Section 111(b) of the Demonstration Cities and Metro-
politan Development Act of 1966 is amended by inserting immediately 
after the first sentence the following new sentence: "In addition, 
there are authorized to be appropriated for such purpose such sums as 
may be necessary for the fiscal year ending June 30, 1975." 
(2) Section 111(c) of such Act is amended by striking out "July 1, 
1974" and inserting in lieu thereof "July 1,1975". 
(e)(1) Section 312(h) of the Housing Act of 1964 is amended 
(A) by strikinjy out "after October 1, 1974" and inserting in lieu 
thereof "after the close of the one-year period beginning on the date 
of the enactment of the Housing and Community Development Act 
of 1974", and (B) by striking out "that date" and inserting in lieu 
thereof "the close of that period". 
(2) Section 312(a)(1) of such Act is amended by inserting "or" 
at the end of subparagraph (C), and by adding after subparagraph 
(C) the following new subparagraph: 
"(D) the rehabilitation is a part of, or is necessary or appro-
priate to the execution of, an approved community development 
program under title I of the Housing and Community Develop-
ment Act of 1974 or an approved urban homestead program 
under section 809 of such Act;". 
(f) With respect to the program period beginning January 1, 1975, 
the Secretary may, without regard to the requirements of section 104, 
advance to any metropolitan city, urban county or other unit of general 
local government, out of the amount allocated to such entity pursuant 
to section 106 (a) or (h), an amount not to exceed 10 per centum of the 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
653 
amount so allocated which shall be available only for use (1) to 
continue projects or programs referred to in clauses (1) and (2) of 
subsection (a) of this section, or (2) to plan and prepare for the 
implementation of activities to be assisted under this title. 
(g) In the case of funds available for any fiscal year, the Secretary 
shall not consider any application from a metropolitan city or urban 
county for a grant pursuant to section 106 (a) or from a unit of general 
local government for a grant pursuant to section 106(h) unless such 
application is submitted on or prior to such date (in that fiscal year) 
as the Secretary shall establish as the final date for submission of 
applications for such grants in that year. 
LIQUIDATION OF SUPERSEDED PKOGRAMS 
SEC. 117. (a) Section 3689 of the Revised Statutes, as amended (31 
U.S.C. 711), is amended by adding after paragraph (22) (as added 
by section 108(f) of this Act) the following new paragraph: 
"(23) For payments required from time to time under contracts 
entered into pursuant to section 103(b) of the Housing Act of 1949 
with respect to projects or programs for which funds have been 
committed on or before December 31, 1974, and for which funds 
have not previously been appropriated." 
(b) The Secretary is authorized to transfer the assets and liabilities 
of any program which is superseded or inactive by reason of this 
title to the revolving fund for liquidating programs established pur-
suant to title II of the Independent Offices Appropriation Act of 1965 
(Public Law 81-428; 68 Stat. 272,295). 
EMPLOYMENT OPPORTUNITIES FOR LOWER INCOME PERSONS 
SEC. 118. Section 3 of the Housing and Urban Development Act of 
^^ use i7oiu. 
1968 is amended by inserting ", including community development 
block grants under title I of the Housing and Community Develop-
ment Act of 1974," immediately after "direct financial assistance". 
TITLE II—ASSISTED HOUSING 
AMENDMENT TO T H E UNITED STATES HOUSING ACT OF 1 9 3 7 
42 u s e 1453,, 
42 u s e 5317,, 
SEC. 201. (a) The United States Housing Act of 1937 is amended to 
read as follows: 
"SHORT TITLE 
"SECTION 1. This Act may be cited as the 'United States Housing 
Act of 1937'. 
"DECLARATION OF POLICY 
"SEC. 2. It is the policy of the United States to promote the general 
welfare of the Nation by employing its funds and credit, as provided 
in this Act, to assist the several States and their political subdivisions 
to remedy the unsafe and unsanitary housing conditions and the acute 
shortage of decent, safe, and sanitary dwellings for families of low 
income and, consistent with the objectives of this Act, to vest in local 
public housing agencies the maximum amount of responsibility in 
the administration of their housing programs. No person should be 
barred from serving on the board of directors or similar governing 
body of a local public housing agency because of his tenancy in a low-
income housing project. 
42 
use 
1430. 
42 
use 
1437 
ote. 
42 
use 
1437. 
654 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
a DEFINITIONS 
42 use 1437a. 
UQ^^^ ^ ^^^^ 
^ g ^ ^ ^^ ^J^-g 
^^^^_ 
"(1) The term, 'low-income housing' means decent, safe, and sani-
tary dwellings within the financial reach of families of low income, and 
embraces all necessary appurtenances thereto. Except as otherwise pro-
vided in this section, income limits for occupancy and rents shall be 
fixed by the public housing agency and approved by the Secretary. The 
rental for any dwelling unit shall not exceed one-fourth of the family's 
income as defined by the Secretary. Notwithstanding the preceding 
sentence, the rental for any dwelling unit shall not be less than the 
higher of (A) 5 per centum of the gross income of the family occupying 
the dwelling unit, and (B) if the family is receiving payments for wel-
fare assistance from a public agency and a part of such payments, 
adjusted in accordance with the family's actual housing costs, is spe-
cifically designated by such agency to meet the family's housing costs, 
the portion of such payments which is so designated. At least 20 
per centum of the dwelling units in any project placed under annual 
contributions contracts in any fiscal year beginning after the effective 
date of this section shall be occupied by very low-income families. In 
defining the income of any family for the purpose of this Act, the 
Secretary shall consider income from all sources of each member of 
the family residing in the household, except that there shall be 
excluded— 
"(A) the income of any family member (other than the head 
of the household or his spouse) who is under eighteen years of 
age or is a full-time student; 
"(B) the first $300 of the income of a secondary wage earner 
who is the spouse of the head of the household: 
"(C) an amount equal to $300 for each member of the family 
residing in the household (other than the head of the household 
or his spouse) who is under eighteen years of age or who is 
eighteen years of age or older and is disabled or handicapped or a 
full-time student; 
"(D) nonrecurring income, as determined by the Secretary; 
"(E) 5 per centum of the family's gross income (10 per centum 
in the case of elderly families) ; 
"(F) such extraordinary medical or other expenses as the Sec-
retary approves for exclusion; and 
"(G) an amount equal to the sums received by the head of the 
household or his spouse from, or under the direction of, any 
public or private nonprofit child placing agency for the care and 
maintenance of one or more persons who are under eighteen 
years of age and were placed in the household by such agency. 
"(2) The term 'low-income families' means families of low income 
w^ho cannot afford to pay enough to cause private enterprise in their 
locality or metropolitan area to build an adequate supply of decent, 
safe, and sanitary dwellings for their use. The term 'very low-income 
families' means families whose incomes do not exceed 50 per centum 
of the median family income for the area, as determined by the Sec-
retary with adjustments for smaller and larger families. The term 
'families' includes families consisting of a single person in the case 
of (A) a person who is at least sixty-two years of age or is under a 
disability as defined in section 223 of the Social Security Act or in 
section 102(5) of the Developmental Disabilities Services and Facili-
42 use 2691. 
I[QQ Construction Amendments of 1970, or is handicapped, (B) a dis-
placed person, and (C) the remaining member of a tenant family; and 
the term 'elderly families' means families whose heads (or their 
spouses), or whose sole members, are persons described in clause (A). 
42 use 423. 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
655 
A person shall be considered handicapped if such person is determined, 
pursuant to regulations issued by the Secretary, to have an impair-
ment which (i) is expected to be of long-continued and indefinite 
duration, (ii) substantially impedes his ability to live independently, 
and (iii) is of such a nature that such ability could be improved by 
more suitable housing conditions. The term 'displaced person' means 
a person displaced by governmental action, or a person whose dwell-
ing has been extensively damaged or destroyed as a result of a disaster 
declared or otherwise formally recognized pursuant to Federal disaster 
relief laws. Notwithstanding the preceding provisions of this para-
graph, the term 'elderly families' includes two or more elderly, dis-
abled, or handicapped individuals living together, or one or more such 
individuals living with another person who is determined under regu-
lations of the Secretary to be a person essential to their care or well 
being. 
"(3) The term 'development' means any or all undertakings neces-
sary for planning, land acquisition, demolition, construction, or equip-
ment, in connection with a low-income housing project. The term 
'development cost' comprises the cost incurred by a public housing 
agency in such undertakings and their necessary financing (including 
the payment of carrying charges), and in otherwise carrying out the 
development of such project. Construction activity in connection with 
a low-income housing project may be confined to the reconstruction, 
remodeling, or repair of existing buildings. 
"(4) The term 'operation' means any or all undertakings appropri-
ate for management, operation, services, maintenance, security 
(including the cost of security personnel), or financing in connection 
with a low-income housing project. The term also means the financing 
of tenant programs and services for families residing in low-income 
housing projects, particularly where there is maximum feasible par-
ticipation of the tenants in the development and operation of such 
tenant programs and services. As used in this paragraph, the term 
'tenant programs and services' includes the development and mainte-
nance of tenant organizations which participate in the management 
of low-income housing projects; the training of tenants to manage 
and operate such projects and the utilization of their services in proj-
ect management and operation; counseling on household manage-
ment, housekeeping, budgeting, money management, child care, and 
similar matters; advice as to resources for job training and placement, 
education, welfare, health, and other community services; services 
which are directly related to meeting tenant needs and providing a 
wholesome living environment; and referral to appropriate agencies 
when necessary for the provision of such services. To the maximum 
extent available and appropriate, existing public and private agencies 
in the community shall be used for the provision of such services. 
"(5) The term 'acquisition cost' means the amount prudently 
required to be expended by a public housing agency in acquiring a 
low-income housing project. 
"(6) The term 'public housing agency' means any State, county, 
municipality, or other governmental entity or public body (or agency 
or instrumentality thereof) which is authorized to engage in or assist 
in the development or operation of low-income housing. 
"(7) The term 'State' includes the several States, the District of 
Columbia, the Commonwealth of Puerto Rico, the territories and 
possessions of the United States, the Trust Territory of the Pacific 
Islands, and Indian tribes, bands, groups, and Nations, including 
Alaska Indians, Aleuts, and Eskimos, of the United States. 
"(8) The term 'Secretary' means the Secretary of Housing and 
Urban Development. 
656 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
"(9) The term 'low-income housing project' or 'project' means (A) 
any low-income housing developed, acquired, or assisted by a public 
housing agency under this Act, and (B) the improvement of any such 
housing. 
"LOANS FOR LOW-INCOME HOUSING PROJECTS 
42 use 1437b. 
"SEC. 4. (a) The Secretary may make loans or commitments to make 
loans to public housing agencies to help finance or refinance the devel-
opment, acquisition, or operation of low-income housing projects by 
such agencies. Any contract for such loans and any amendment to 
a contract for such loans shall provide that such loans shall bear 
interest at a rate specified by the Secretary which shall not be less 
than a rate determined by the Secretary of the Treasury taking into 
consideration the current average market yield on outstanding mar-
ketable obligations of the United States with remaining periods to 
maturity comparable to the average maturities of such loans, plus 
one-eighth of 1 per centum. Such loans shall be secured in such man-
ner and shall be repaid within such period not exceeding forty years, 
or not exceeding forty years from the date of the bonds evidencing 
the loan, as the Secretary may determine. The Secretary may require 
loans or commitments to make loans under this section to be pledged 
as security for obligations issued by a public housing agency in con-
nection with a low-income housing project. 
"(b) The Secretary may issue and have outstanding at any one time 
notes and other obligations for purchase by the Secretary of the Treas-
ury in an amount which will not, unless authorized by the President, 
exceed $1,500,000,000. For the purpose of determining obligations 
incurred to make loans pursuant to this Act against any limitation 
otherwise applicable with respect to such loans, the Secretary shall 
estimate the maximum amount to be loaned at any one time pursuant 
to loan agreements then outstanding with public housing agencies. 
Such notes or other obligations shall be in such forms and denomina-
tions and shall be subject to such terms and conditions as may be 
prescribed by the Secretary with the approval of the Secretary of the 
Treasury. The notes or other obligations issued under this subsection 
shall have such maturities and bear such rate or rates of interest as 
shall be determined by the Secretary of the Treasury. The Secretary 
of the Treasury is authorized and directed to purchase any notes or 
other obligations of the Secretary issued hereunder and for such pur-
pose is authorized to use as a public debt transaction the proceeds from 
the sale of any securities issued under the Second Liberty Bond Act, 
as amended, and the purposes for which securities may be issued under 
such Act, as amended, are extended to include any purchases of such 
obligations. The Secretary of the Treasury may at any time sell any 
of the notes or other obligations acquired by him under this section. 
All redemptions, purchases, and sales by the Secretary of the Treas-
ury of such notes or other obligations shall be treated as public debt 
transactions of the United States. 
31 u s e 774. 
u 
42 u s e 1437c. 
ANNUAL CONTRIBUTIONS FOR LOW-INCOME HOUSING PROJECTS 
"SEC. 5. (a) The Secretary may make annual contributions to public 
housing agencies to assist in achieving and maintaining the low-income 
character of their projects. The Secretary shall embody the provisions 
for such annual contributions in a contract guaranteeing their pay-
ment. The contribution payable annually under this section shall in no 
case exceed a sum equal to the annual amount of principal and interest 
payable on obligations issued by the public housing agency to finance 
the development or acquisition cost of the low-income project involved. 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
657 
The amount of annual contributions which would be established for 
a newly constructed project by a public housing agency designed to 
accommodate a number of families of a given size and kind may be 
established under this section for a project by such public housing 
agency which would provide housing for the comparable number, sizes, 
and kinds of families through the acquisition and rehabilitation, or use 
under lease, of structures which are suitable for low-income housing 
use and obtained in the local market. Annual contributions payable 
under this section shall be pledged, if the Secretary so requires, as 
security for obligations issued by a public housing agency to assist the 
development or acquisition of the project to which annual contribu-
tions relate and shall be paid over a period not to exceed forty years. 
"(b) The Secretary may prescribe regulations fixing the maximum 
contributions available under different circumstances, giving consider-
ation to cost, location, size, rent-paying ability of prospective tenants, 
or other factors bearing upon the amounts and periods of assistance 
needed to achieve and maintain low rentals. Such regulations may pro-
vide for rates of contribution based upon development, acquisition, or 
operation costs, number of dwelling units, number of persons housed, 
interest charges, or other appropriate factors. 
"(c) The Secretary is authorized to enter into contracts for annual 
contributions aggregating not more than $1,199,250,000 per annum, 
which limit shall be increased by $225,000,000 on July 1, 1971, by 
$150,000,000 on July 1, 1972, by $400,000,000 on July 1, 1973, and by 
$965,000,000 on July 1, 1974. Of the aggregate amount of contracts 
for annual contributions authorized to be entered into on or after 
July 1, 1974, the Secretary shall enter into contracts for annual con-
tributions aggregating at least $150,000,000 per annum to assist in 
financing the development or acquisition cost of low-income housing 
projects to be owned by public housing agencies. Not more than 50 
per centum of the dwelling units placed under contract pursuant to 
the preceding sentence may be constructed or substantially rehabili-
tated for ownership by public housing agencies under section 8 of 
this Act. In addition to the amount of contracts for annual contribu-
tions required to be entered into by the Secretary under the second 
sentence of this subsection, the Secretary shall enter into contracts 
for annual contributions, out of the aggregate amount of contracts for 
annual contributions authorized under this section to be entered into 
on or after July 1, 1974, aggregating at least $15,000,000 per annum, 
which amount shall be increased by not less than $15,000,000 per 
annum, on July 1,1975, to assist in financing the development or acqui-
sition cost of low-income housing for families who are members of 
any Indian tribe, band, pueblo, group, or community of Indians or 
Alaska Natives which is recognized by the Federal Government as 
eligible for service from the Bureau of Indian Affairs, or who are 
wards of any State government, except that n<>ne of the funds made 
available under this sentence shall be available for use under section 8. 
For the purpose of the preceding sentence, the annual contributions 
for a project shall, notwithstanding any other provision of this Act, 
be equal to the difference between the sum of the total debt service 
payment plus approved operating costs, and the rental payments that 
tenants are required to make under section 3(1) of this Act. The Sec-
retary shall enter into only such new contracts for preliminary loans 
as are consistent with the number of dwelling units for which con-
tracts for annual contributions may be entered into. The faith of the 
United States is solemnly pledged to the payment of all annual con-
tributions contracted for pursuant to this section, and there are hereby 
authorized to be appropriated in each fiscal year, out of any money in 
the Treasury not otherwise appropriated, the amounts necessary to 
Regulations. 
Contract 
authority. 
Ante, p. 654. 
658 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
provide for such payments. All payments of annual contributions pur-
suant to this section shall be made out of any funds available for pur-
poses of this Act when such payments are due, except that funds 
Ante, p. 656. 
obtained through the issuance of obligations pursuant to section 4(b) 
(including repayments or other realizations of the principal of loans 
made out of such funds) shall not be available for the payment of 
such annual contributions. 
"(d) Any contract for loans or annual contributions, or both, 
entered into by the Secretary with a public housing agency, may 
cover one or more than one low-income housing project owned by 
such public housing agency; in the event the contract covers two or 
more projects, such projects may, for any of the purposes of this Act 
and of such contract (including, but not limited to, the determination 
of the amount of the loan, annual contributions, or payments in lieu of 
taxes, specified in such contract), be treated collectively as one project. 
"(e) In recognition that there should be local determination of the 
need for low-income housing to meet needs not being adequately met 
by private enterprise—• 
"(1) the Secretary shall not make any contract with a public 
housing agency for preliminary loans (all of which shall be 
repaid out of any moneys which become available to such 
agency for the development of the projects involved) for surveys 
and planning in respect to any low-income housing projects (i) 
unless the governing body of the locality involved has by resolu-
tion approved the application of the public housing agency for 
such preliminary loan; and (ii) unless the public housing agency 
has demonstrated to the satisfaction of the Secretary that there is 
need for such low-income housing which is not being met by pri-
vate enterprise; and 
"(2) the Secretary shall not make any contract for loans (other 
than preliminary loans) or for annual contributions pursuant to 
this Act unless the governing body of the locality involved has 
entered into an agreement with the public housing agency pro-
viding for the local cooperation required by the Secretary pur-
suant to this Act. 
"(f) Subject to the specific limitations or standards in this Act 
governing the terms of sales, rentals, leases, loans, contracts for annual 
contributions, or other agreements, the Secretary may, whenever he 
deems it necessary or desirable in the fulfillment of the purposes of 
this Act, consent to the modification, with respect to rate of interest, 
time of payment of any installment of principal or interest, security, 
amount of annual contribution, or any other term, of any contract or 
agreement of any kind to which the Secretary is a party. When the 
Secretary finds that it would promote economy or be in the financial 
interest of the Federal Government or is necessary to assure or main-
tain the low-income character of the project or projects involved, any 
contract heretofore or hereafter made for annual contributions, loans, 
or both, may be amended or superseded by a contract entered into by 
mutual agreement between the public housing agency and the Secre-
tary. Contracts may not be amended or superseded in a manner which 
would impair the rights of the holders of any outstanding obligations 
of the public housing agency involved for which annual contributions 
have been pledged. Any rule of law contrary to this provision shall be 
deemed inapplicable. 
"(g) In addition to the authority of the Secretary vmder subsection 
(a) to pledge annual contributions as security for obligations issued by 
a public housing agency, the Secretary is authorized to pledge annual 
contributions as a guarantee of payment by a public housing agency 
of all principal and interest on obligations issued by it to assist the 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
659 
development or acquisition of the project to which the annual con-
tributions relate, except that no obligation shall be guaranteed under 
this subsection if the income thereon is exempt from Federal taxation. 
"(h) Notwithstanding any other provision of law, a public housing 
agency may sell a low-income housing project to its low-income 
tenants, on such terms and conditions as the agency may determine, 
without affecting the Secretary's commitment to pay annual contribu-
tions with respect to that project, but such contributions shall not 
exceed the maximum contributions authorized under subsection (a) 
of this section. 
CONTRACT PROVISIONS AND 
REQUIREMENTS 
42 u s e 1437d. 
"SEC. 6. (a) Secretary may include in any contract for loans, annual 
contributions, sale, lease, mortgage, or any other agreement or 
instrument made pursuant to this Act, such convenants, conditions, or 
provisions as he may deem necessary in order to insure the low-income 
character of the project involved. Any such contract may contain a 
condition requiring the maintenance of an open space or playground 
in connection with the housing project involved if deemed necessary by 
the Secretary for the safety or health of children. Any such contract 
shall require that, except in the case of housing predominantly for 
the elderly, high-rise elevator projects shall not be provided for 
families with children unless the Secretary makes a determination 
that there is no practical alternative. 
"(b) Every contract made pursuant to this Act for loans (other 
than preliminary loans) or annual contributions shall provide that 
the cost of construction and equipment of the project (excluding land, 
demolition, and nondwelling facilities) on which the computation of 
any annual contributions under this Act may be based shall not exceed 
by more than 10 per centum the appropriate prototype cost for the 
area. The prototype costs shall be determined at least annually by the 
Secretary on the basis of his estimate of the construction costs of new 
dwelling units of various types and sizes in the area suitable for 
occupancy by persons assisted under this Act. In making his determina-
tion the Secretary shall take into account (1) the extra durability 
required for safety and security and economical maintenance of such 
housing, (2) the provision of amenities designed to guarantee a safe 
and healthy family life and neighborhood environment, (3) the appli-
cation of good design as an essential component of such housing for 
safety and security as well as other purposes, (4) the maintenance 
of quality in architecture to reflect the standards of the neighborhood 
and community, (5) the need for maximizing the conservation of 
energy for heating, lighting, and other purposes, (6) the effectiveness 
of existing cost limits m the area, and (7) the advice and recommenda-
tions of local housing producers. The prototype costs for any area 
Publication in 
shall become effective upon the date of publication in the Federal 
Register. 
(c) Every contract for annual contributions shall provide that— 
"(1) the Secretary may require the public housing agency to 
review and revise its maximum income limits if the Secretary 
determines that changed conditions in the locality make such 
revision necessary in achieving the purposes of this Act; 
"(2) the public housing agency shall determine, and so certify 
to the Secretary, that each family in the project was admitted in 
accordance with duly adopted regulations and approved income 
limits; and the public housing agency shall review the incomes of 
families living in the project at intervals of two years (or at 
shorter intervals where the Secretary deems it desirable) ; 
660 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
licantl'^notlce 
" (^) ^^^ publlc houslng agciicy shall promptly notify (i) any 
and informal 
applicant determined to be ineligible for admission to the project 
^'^^""s- 
of the basis for such determination and provide the applicant 
upon request, within a reasonable time after the determination is 
made, with an opportunity for an informal hearing on such deter-
mination, and (ii) any applicant determined to be eligible for 
admission to the project of the approximate date of occupancy 
insofar as such date can be reasonably determined; and 
" (4) the public housing agency shall comply with such proce-
dures and requirements as the Secretary may prescribe to assure 
that sound management practices will be followed in the operation 
of the project, including requirements pertaining to— 
" (A) the establishment of tenant selection criteria designed 
to assure that, within a reasonable period of time, the project 
will include families with a broad range of incomes and will 
avoid concentrations of low-income and deprived families 
with serious social problems, but this shall not permit main-
tenance of vacancies to await higher income tenants where 
lower income tenants are available; 
"(B) the establishment of satisfactory procedures designed 
to assure the prompt payment and collection of rents and the 
prompt processing of evictions in the case of nonpayment of 
rent; 
"(C) the establishment of effective tenant-management 
relationships designed to assure that satisfactory standards of 
tenant security and project maintenance are formulated and 
that the public housing agency (together with tenant councils 
where they exist) enforces those standards fully and effec-
tively; and 
"(D) the development by local housing authority manage-
ments of viable homeownership opportunity programs for 
low-income families capable of assuming the responsibilities 
of homeownership. 
"(d) Everj contract for annual contributions with respect to a low-
income housing project shall provide that no annual contributions by 
the Secretary shall be made available for such project unless such 
project (exclusive of any portion thereof which is not assisted by 
annual contributions under this Act) is exempt from all real and per-
sonal property taxes levied or imposed by the State, city, county, or 
other political subdivision; and such contract shall require the public 
housing agency to make payments in lieu of taxes equal to 10 per 
centum of the sum of the annual shelter rents charged in such project, 
or such lesser amount as (i) is prescribed by State law, or (ii) is agreed 
to by the local governing body in its agreement for local cooperation 
with the public housing agency required under section 5(e) (2) of this 
Act, or (iii) is due to failure of a local public body or bodies other 
than the public housing agency to perform any obligation under such 
agreement. If any such project is not exempt from all real and per-
sonal property taxes levied or imposed by the State, city, countv, or 
other political subdivision, such contract shall provide, in lieu of the 
requirement for tax exemption and payments in lieu of taxes, that no 
annual contributions by the Secretary shall be made available for such 
project unless and until the State, city, county, or other political sub-
division in which such project is situated shall contribute, in the form 
of cash or tax remission, the amount by which the taxes paid with 
respect to the project exceed 10 per centum of the annual shelter rents 
charged in such project. 
88 STAT. ] 
PUBLIC L
A
W 93-383-AUG. 22, 1974 
661 
"(e) Every contract for annual contributions shall provide that 
whenever in any year the receipts of a public housing agency in con-
nection with a low-income housing project exceed its expenditures 
(including debt service, operation, maintenance, establishment of 
reserves, and other costs and charges), an amount equal to such excess 
shall be applied, or set aside for application, to purposes which, in 
the determination of the Secretary, will effect a reduction in the 
amount of subsequent annual contributions. 
^ 
"(f) Every contract for annual contributions shall provide that 
when the public housing agency and the Secretary mutually agree 
that a housing project is obsolete as to physical condition, or location, 
or other factors, making it unusable for housing purposes, a program 
of modifications or closeout shall be prepared. If it is mutually deter-
mined that such project can be returned to useful life, then the 
Secretary is authorized to utilize such annual contributions as are 
necessary to enable the local public housing agency to undertake an 
agreed-upon program of modifications. If it is mutually determined 
that no program of modifications is feasible or that such a program 
would not return the housing to a useful life, then the Secretary is 
authorized to prepare a closeout program, utilizing such annual con-
tributions as are necessary to accommodate the outstanding indebted-
ness on the project, the cost of demolition 
(if the physical 
improvements are not to be sold), and the cost of relocating displaced 
families into satisfactory replacement housing. The n6t closeout cost 
to the Federal Government shall take into consideration any receipts 
from the sale of physical improvements, land, or other assets, pur-
suant to the provisions of the annual contributions contract. 
"(g) Every contract for annual contributions (including contracts 
which amend or supersede contracts previously made) may provide 
that>-
"(1) upon the occurrence of a substantial default in respect to 
the covenants or conditions to which the public housing agency 
is subject (as such substantial default shall be defined in such 
contract), the public housing agency shall be obligated at the 
option of the Secretary either to convey title in any case where, in 
the determination of the Secretary (which determination shall 
be final and conclusive), such conveyance of title is necesary to 
achieve the purposes of this Act, or to deliver to the Secretary 
possession of the project, as then constituted, to which such 
contract relates; and 
"(2) the Secretary shall be obligated to reconvey or redeliver 
possession of the project, as constituted at the time of reconveyance 
or redelivery, to such public housing agency or to its successor 
(if such public housing agency or a successor exists) upon such 
terms as shall be prescribed in such contract, and as soon as prac-
ticable (i) after the Secretary is satisfied that all defaults with 
respect to the project have been cured, and that the project will, 
in order to fulfill the purposes of this Act, thereafter be operated 
in accordance with the terms of such contract; or (ii) after the 
termination of the obligation to make annual contributions avail-
able unless there are any obligations or covenants of the public 
housing agency to the Secretary which are then in default. Any 
prior conveyances and reconveyances or deliveries and redeliveries 
of possession shall not exhaust the right to require a conveyance 
or delivery of possession of the project to the Secretary pursuant 
to subparagraph (1) upon the subsequent occurrence of a substan-
tial default. 
38-194 O - 76 - 45 Pt 1 
662 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
Whenever such a contract for annual contributions includes provisions 
which the Secretary in such contract determines are in accordance with 
this subsection, and the portion of the annual contribution payable for 
debt service requirements pursuant to such contract has been pledged 
by the public housing agency as security for the payment of the prin-
cipal and interest on any of its obligations, the Secretary (notwith-
standing any other provisions of this Act) shall continue to make such 
annual contributions available for the project so long as any of such 
obligations remain outstanding, and may covenant in such contract 
that in any event such annual contributions shall in each year be at 
least equal to an amount which, together with such income or other 
funds as are actually available from the project for the purpose at the 
time such annual contribution is made, will suffice for the payment of 
all installments, falling due within the next succeeding twelve months, 
of principal and interest on the obligations for which the annual con-
tributions provided for in the contract shall have been pledged as 
security. In no case shall such annual contributions be in excess of the 
maximum sum specified in the contract involved, nor for longer than 
the remainder of the maximum period fixed by the contract. 
a 
42 use 1437e. 
42 u s e 1410. 
42 use 1437f. 
CONGREGATE HOUSING 
"SEC. 7. The Secretary shall encourage public housing agencies, in 
providing housing predominantly for displaced or elderly families, 
to design, develop, or otherwise acquire such housing to meet the special 
needs of the occupants and, wherever practicable, for use in whole or in 
part as congregate housing: Provided^ That not more than 10 per 
centum of the total amount of contracts for annual contributions 
entered into any fiscal year pursuant to the new authority granted 
under section 202 of the Housing and Urban Development Act of 1970 
or under any law subsequently enacted shall be entered into with 
respect to units in congregate housing. As used in this section the term 
'congregate housing' means low-income housing (A) in which some 
or all of the dwelling units do not have kitchen facilities, and (B) 
connected with which there is a central dining facility to provide 
wholesome and economical meals for elderly and displaced families 
under terms and conditions prescribed by the public housing agency 
to permit a generally self-supporting operation. Expenditures incurred 
by a public agency in the operation of a central dining facility in con-
nection with congregate housing (other than the cost of providing food 
and service) shall be considered one of the costs of operation of the 
project, 
"LOWER-INCOME HOUSING ASSISTANCE 
"SEC. 8. (a) For the purpose of aiding lower-income families in 
obtaining a decent place to live and of promoting economically mixed 
housing, assistance pavments may be made with respect to existing, 
newly constructed, and substantially rehabilitated housing in accord-
ance with the provisions of this section. 
"(b) (1) The Secretary is authorized to enter into annual contribu-
tions contracts with public housing agencies pursuant to which such 
agencies may enter into contracts to make assistance payments to 
owners of existing dwelling units in accordance with this section. In 
areas where no piiblic housing agency has been organized or where the 
Secretary determines that a public housing agency is unable t^ imple-
ment the provisions of this section, the Secretary is authorized to 
enter into such contracts and to perform the other functions assigned 
to a public housing agency by this section. 
88 STAT.] 
PUBLIC LAW 93-383-AUG. 22, 1974 
663 
"(2) To the extent of annual contributions authorizations under 
section 5 (c) of this Act, the Secretary is authorized to make assistance 
payments pursuant to contracts with owners or prospective owners 
wlio agree to construct or substantially rehabilitate housing in which 
some or all of the units shall be available for occupancy by lower-
income families in accordance with the provisions of this section. The 
Secretary may also enter into annual contributions contracts with j)ub-
lic housing agencies pursuant to which such agencies may enter into 
contracts to make assistance payments to such owners or prospective 
owners. 
"(c) (1) An assistance contract entered into pursuant to this section 
shall establish the maximum monthly rent (including utilities and all 
maintenance and management charges) which the owner is entitled to 
receive for each dwelling unit with respect to which such assistance 
payments are to be made. The maximum monthly rent shall not 
exceed by more than 10 per centum the fair market rental established 
by the Secretary periodically but not less than annually for existing or 
newly constructed rental dwelling units of various sizes and types in 
the market area suitable for occupancy by persons assisted under this 
section, except that the maximum monthly rent may exceed the fair 
market rental by more than 10 but not more than 20 per centum where 
the Secretary determines that special circumstances warrant such 
higher maximum rent or that such higher rent is necessary to the 
implementation of a local housing assistance plan as defined in section 
213(a)(5) of the Housing and Community Development Act of 1974. 
Proposed fair market rentals for an area shall be published in the 
Federal Register with reasonable time for public comment, and shall 
become effective upon the date of publication in final form in the 
Federal Register. 
" (2) (A) The assistance contract shall provide for adjustment annu-
ally or more frequently in the maximum monthly rents for units 
covered by the contract to reflect changes in the fair market rentals 
established in the housing area for similar types and sizes of dwelling 
units or, if the Secretary determines, on the basis of a reasonable 
formula. 
"(B) The contract shall further provide for the Secretary to make 
additional adjustments in the maximum monthly rent for units under 
contract to the extent he determines such adjustments are necessary to 
reflect inci-eases in the actual and necessary expenses of owning and 
maintaining the units which have resulted from substantial general 
increases in real property taxes, utility rates, or similar costs which are 
not adequately compensated for by the adjustment in the maximum 
monthly rent authorized by subparagraph (A). 
"(C) Adjustments in the maximum rents as hereinbefore provided 
shall not result in material differences between the rents charged for 
assisted and comparable unassisted units, as determined by the 
Secretary. 
" (3) The amount of the monthly assistance payment with respect to 
any dwelling unit, in the case of a large very low-income family, a 
very large lower income family, or a family with exceptional medical 
or other expenses, as determined by the Secretary, shall be the differ-
ence between 15 per centum of one-twelfth of the annual income of the 
family occupying the dwelling unit and the maximum monthly rent 
which the contract provides that the owner is to receive for the unit. In 
the case of other families, the Secretary shall establish the amount of 
the assistance payment as the difference between not less than 15 per 
centum nor more than 25 per centum of the family's income and the 
maximum rent, taking into consideration the income of the family, the 
Ante, 
p. 656. 
Maximum 
monthly rent. 
Limitation. 
Post, p. 674. 
Proposed fair 
market rentals, 
publication in 
Federal Register, 
Adjustments. 
664 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
number of minor children in the household, and the extent of medical 
or other unusual expenses incurred by the family. Reviews of family 
income shall be made no less frequently than annually (except that 
such reviews may be made at intervals no longer than two years in the 
case of families who are elderly families). 
"(4) The assistance contract shall provide that assistance payments 
may be made only with respect to a dwelling unit under lease for 
occupancy by a family determined to be a lower income family at the 
time it initially occupied such dwelling unit, except that such pay-
ments may be made with respect to unoccupied units for a period not 
exceeding sixty days (A) in the event that a family vacates a dwelling 
unit before the expiration date of the lease for occupancy or (B) 
where a good faith effort is being made to fill an unoccupied unit. 
"(5) Assistance payments may be made with respect to up to 100 
per centum of the dwelling units in any structure upon the applica-
tion of the owner or prospective owner. Within the category of projects 
containinji- more than fifty units and designed for use primarily by 
nonelderly and nonhandicapped persons, the Secretary may give pref-
erence to applications for assistance involving not more than 20 per 
centum of t)ie dwelling units in a project. In according any such pref-
erence, the Secretary shall compare applications received during dis-
tinct time periods not exceeding sixty days in duration. 
" (6) The Secretary shall take such steps as may be necessary, includ-
ing the making of contracts for assistance payments in amounts in 
excess of the amounts required at the time of the initial renting of 
dwelling units, the reservation of annual contributions authority for 
the purpose of amending housing assistance contracts, or the alloca-
tion of a portion of new authorizations for the purpose of amending 
housing assistance contracts, to assure that assistance payments are 
increased on a timely basis to cover increases in maximum monthly 
rents or decreases in family incomes. 
"(7) At least 30 per centum of the families assisted under this 
section with annual allocations of contract authority shall be very 
low-income families at the time of the initial renting of dwelling units. 
" (8) To the extent authorized in contracts entered into by the Secre-
tai-y with a public housing agency, such agency may purchase any 
structure containing one or more dwelling units assisted under this 
section for the purpose of reselling the structure to the tenant or ten-
ants occupying units aggregating in value at least 80 per centum of 
the structure's total value. Any such resale may be made on the terms 
Ante, p. 656. 
^^^^ couditious prescribed under section 5 (h) and subject to the limita-
tion contained in such section. 
"(d) (1) Contracts to make assistance payments entered into by a 
public housing agency with an owner of existing housing units shall 
provide (with respect to any unit) that— 
"(A) the selection of tenants for such unit shall be the func-
tion of the owner, subject to the provisions of the annual contribu-
tions contract between the Secretary and the agency; 
"(B) the agency shall have the sole right to give notice to 
vacate, with the owner having the right to make representation 
to the agency for termination of tenancy; 
"(C) maintenance and replacement (including redecoration) 
shall be in accordance with the standard practice for the building 
concerned as established by the owner and agreed to by the 
agency; and 
"(D) the agency and the owner shall carry out such other 
appropriate terms and conditions as may be mutually agreed to 
by them. 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
665 
"(2) Each, contract for an existing structure entered into under this 
section shall be for a term of not less than one month nor more than 
one hundred and eighty months. 
"(e) (1) The Secretary shall not contract to make assistance pay-
ments with respect to a newly constructed or substantially rehabilitated 
dwelling unit for a term of less than one month or more than two 
hundred and forty months. In the case of a project owned by, or 
financed by a loan or loan guarantee from, a State or local agency, 
the term may not exceed four hundred and eighty months. 
"(2) The contract between the Secretary and the owner with respect 
to newly constructed or substantially rehabilitated dwelling units 
shall provide that all owmership, management, and maintenance 
responsibilities, including the selection of tenants and the termination 
of tenancy, shall be assumed by the owner (or any entity, including a 
public housing agency, approved by the Secretary, with which the 
owner may contract for the performance of such responsibilities). 
" (3) The construction or substantial rehabilitation of dwelling units 
to be assisted under this section shall be eligible for financing with 
mortgages insured under the National Housing Act. Assistance with 
respect to such dwelling units shall not be withheld or made subject 
to preferences by reason of the availability of mortgage insurance 
pursuant to section 244 of such Act or by reason of the tax-exempt 
status of the bonds or other obligations to be used to finance such con-
struction or rehabilitation. 
" (4) Nothing in this Act shall be deemed to prohibit an owner from 
pledging, or offering as security for any loan or obligation, a contract 
for assistance payments entered into pursuant to this section: Provided, 
That such security is in connection with a project constructed or 
rehabilitated pursuant to authority granted in this section, and the 
terms of the financing or any refinancing have been approved by the 
Secretary. 
" (f) As used in this section— 
"(1) the term 'lower income families' means those families 
whose incomes do not exceed 80 per centum of the median income 
for the area, as determined by the Secretary with adjustments 
for smaller and larger families, except that the Secretary may 
establish income ceilings higher or lower than 80 per centum 
of the median for the area on the basis of his findings that such 
variations are necessary because of prevailing levels of construc-
tion costs, unusually high or low family incomes, or other factors; 
"(2) the term 'very low-income families' means those families 
whose incomes do not exceed 60 per centum of the median 
income for the area, as determined by the Secretary with adjust-
ments for smaller and larger families; 
"(3) the term 'income' means income from all sources of each 
member of the household, as determined in accordance with 
criteria prescribed by the Secretary; 
"(4) the term 'owner' means any private person or entity, 
including a cooperative, or a public housing agency, having the 
legal right to lease or sublease newly constructed or substantially 
rehabilitated dwelling units as described in this section; and 
"(5) the terms 'rent' or 'rental' mean, with respect to members 
of a cooperative, the charges under the occupancy agreements 
between such members and the cooperative. 
"(g) Notwithstanding any other provision of this Act, assistance 
payments under this section may be provided, in accordance with 
regulations prescribed by the Secretary, with respect to some or all of 
the units in any project approved pursuant to section 202 of the Hous-
ing Act of 1959. 
Restriction, 
12 use 1701 
note. 
Post, p. 679. 
Definitions. 
12 u s e 1701q. 
666 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
65l??59?" ""*' 
"(?^). The jproyisions of sections 3(1), 5(e), and 6, and any other 
provisions of this Act, which are inconsistent with the provisions of 
this section shall not apply to contracts for assistance entered into 
under this section. 
"AXNUAL CONTRIBUTIONS FOR OPERATION OF LOW-INCOME 
HOUSING 
P R O J E C T S 
42 use i437g. 
"SEC. 9. (a) In addition to the contributions authorized to be made 
for the purposes specified in section 5 of this Act, the Secretary may 
make annual contributions to public housing agencies for the operation 
of low-income housing projects. The contributions payable annually 
under this section shall not exceed the amounts which the Secretary 
determines are required (1) to assure the low-income character of the 
projects involved, and (2) to achieve and maintain adequate operat-
ing services and reserve funds. The Secretary shall embody the pro-
visions for such annual contributions in a contract guaranteeing their 
payment subject to the availability of funds. For purposes of making 
payments under this section, the Secretary shall establish standards 
for costs of operation and reasonable projections of income, taking 
into account the character and location of the project and char-
acteristics of the families served, or the costs of providing compa-
rable services as determined in accordance with criteria or a formula 
representing the operations of a prototype well-managed project. 
"(b) The aggregate rentals required to be paid in any year by 
families residing in the dwelling units administered by a public 
housing agency receiving annual contributions under this section shall 
not be less than an amount equal to one-fifth of the sum of the incomes 
of all such families. 
"(c) Of the aggregate amount of contracts for annual contributions 
authorized in section 5(c) of this Act to be entered into on or after 
July 1, 1974, the Secretary is authorized to enter into contracts for 
annual contributions under this section aggregating not more than 
$500,000,000 per annum, which amount shall be increased by 
$60,000,000 on July 1,1975. 
u GENERAL PROVISIONS 
42 use 1437h. 
31 use 841 
note. 
"SEC. 10. (a) In the performance of, and with respect to, the 
functions, powers, and duties vested in him by this Act, the Secretary, 
notwithstanding the provisions of any other law, shall— 
"(1) prepare annually and submit a budget program as 
provided for wholly owned Government corporations by the 
Government Corporation Control Act, as amended; and 
G
A
G audit. 
" (2) maintain an integral set of accounts which shall be audited 
annually by the General Accounting Office in accordance with 
the principles and procedures applicable to commercial transac-
tions as provided by the Government Corporation Control Act, 
as amended, and no other audit shall be required. 
"(b) All receipts and assets of the Secretary under this Act shall 
be available for the purposes of this Act until expended. 
"(c) The Federal Reserve banks are authorized and directed to act 
as depositories, custodians, and fiscal agents for the Secretary in the 
general exercise of his powers under this Act, and the Secretary may 
reimburse any such bank for its services in such manner as may be 
agreed upon. 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
667 
"FINANCING LOW-INCOME HOUSING PROJECTS 
42 u s e 14371., 
"SEC. 11. (a) Obligations issued by a public housing agency in con-
nection with low-income housing projects which (1) are secured (A) 
by a pledge of a loan under any agreement between such public housing 
agency and the Secretary, or (B) by a pledge of annual contributions 
under an annual contributions contract between such public housing 
agency and the Secretary, or (C) by a pledge of both annual contribu-
tions under an annual contributions contract and a loan under an 
agreement between such public housing agency and the Secretary, and 
(1) bear, or are accompanied by, a certificate of the Secretary that 
such obligations are so secured, shall be incontestable in the hands of 
a bearer and the full faith and credit of the United States is pledged 
to the payment of all amounts agreed to be paid by the Secretary as 
security for such obligations. 
"(b) Except as provided in section 5(g), obligations, including 
^^^''^^^''^'"^56°"* 
interest thereon, issued by public housing agencies in connection with 
low-income housing projects shall be exempt from all taxation now 
or hereafter imposed by the United States whether paid by such agen-
cies or by the Secretary. The income derived by such agencies from 
such projects shall be exempt from all taxation now or hereafter 
imposed by the United States. 
'LABOR STANDARDS 
42 u s e 1437J. 
"SEC. 12. Any contract for loans, annual contributions, sale, or lease 
pursuant to this Act shall contain a provision requiring that not less 
than the wages prevailing in the locality, as determined or adopted 
(subsequent to a determination under applicable State or local law) 
by the Secretary, shall be paid to all architects, technical engineers, 
draftsmen, and technicians employed • in the development, and all 
maintenance laborers and mechanics employed in the operation, of 
the low-income housing project involved; and shall also contain a pro-
vision that not less than the wages prevailing in the locality, as pre-
determined by the Secretary of Labor pursuant to the Davis-Bacon 
Act (49 Stat. 1011), shall be paid to all laborers and mechanics „„te."^^ ^^^^ 
employed in the development of the project involved (including a proj-
ect with nine or more units assisted under section 8 of this Act, where 
the public housing agency or the Secretary and the builder or sponsor 
enter into an agreement for such use before construction or rehabilita-
tion is commenced), and the Secretary shall require certification as to 
compliance with the provisions of this section prior to making any 
payment under such contract." 
(b) The provisions of subsection (a) of this section shall be effective 
on such date or dates as the Secretary of Housing and Urban Develop- note 
ment shall prescribe, but not later than eighteen months after the date 
of the enactment of this Act; except that (1) all of the provisions of 
section 3 (1) of the United States Housing Act of 1937, as amended by 
subsection (a) of this section, shall become effective on the same date, 
(2) all of the provisions of sections 5 and 9(c) of such Act as so 
^"'«'P-^^6. 
amended shall become effective on the same date, and (3) section 8 
of such Act as so amended shall be effective not later than Januarv 1, 
1975. 
^ ' 
Effective date. 
42 u s e 1437 
Ante, p. 654. 
Ante, p. 662. 
APPLICABILITY or 
RENTAL REQUIREMENTS 
SEC. 202. To the extent that section 3(1) of the United States Hous-
ing Act of 1937, as amended by section 201(a) of this Act, would 
require the establishment of an increased monthly rental charge for 
any family which occupies a low-income housing unit as of the effec-
42 u s e 1437a 
note. 
668 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
Ante, p. 654. 
tlve date of such section 3(1) (other than by reason of the provisions 
relating to welfare assistance payments), the required adjustment 
shall be made, in accordance with regulations of the Secretary, as fol-
lows: (A) the first adjustment shall not exceed $5 and shall become 
effective as of the month following the month of the first review of the 
Ante. p. 659. 
family's income pursuant to section 6(c) (2) of such Act which occurs 
at least six months after the effective date of such section 3(1), and 
(B) subsequent adjustments, each of which shall not exceed $5, shall 
be made at six-month intervals over whatever period is necessary to 
effect the full required increase in the family's rental charge. 
42 u s e 1437f 
note. 
42 u s e 1410. 
EXEMPTIONS OF CERTAIN PROJECTS FROM RENTAL 
FORMULA 
SEC, 203. The rental or income contribution provisions of the United 
States Housing Act of 1937, as amended by section 201 of this Act, 
shall not preclude the use of special schedules of required payments as 
approved by the Secretary for participants in mutual help housing 
projects who contribute labor, land, or materials to the development 
of such projects. 
REPEAL OF SPECIFICATION REQUIREMENTS I N CONSTRUCTION 
CONTRACTS 
4
2
^ ijsc 141 Id 
^^^' ^^^- Section 815 of the Housing Act of 1954 is repealed. 
145Sa. 
RETROACTIVE EFFECT OF REPEAL OF SECTION 10 ( j ) 
SEC. 205. Section 206(c) of the Housing Act of 1961 (Public Law 
^^42 use 1410 
87_7o^ approved June 30, 1961, 75 Stat. 165) is amended by adding at 
the end thereof the following sentence: "The Secretary of Housing 
and Urban Development is authorized to agree with a public housing 
agency to the amendment of any annual contributions contract con-
taining the provision prescribed in section 10(j) of the United States 
Housing Act of 1937 (as in effect prior to the enactment of the Housing 
and Community Development Act of 1974), so as to delete such provi-
sion and waive any rights of the United States that are accrued or 
may accrue under such provision." 
AMENDMENT TO NATIONAL BANK 
ACT 
SEC. 206. The sixth sentence of paragraph "Seventh" of section 
5136 of the Revised Statutes, as amended (12 U.S.C. 24), is amended— 
(1) by striking out "1421a(b) of title 42" wherever it appears 
and inserting in lieu thereof "6(g) of the United States Housing 
Ante, 
p. 659. 
Act 
of 1937" 
; 
(2) by striking out "either" before clause (1) ; 
(3) by striking out "(which obligations shall have a maturity 
of not more than eighteen months)" in clause (1) ; 
(4) by striking out "or" before clause (2); and 
(5) by inserting before the colon before the first proviso the 
following: ", or (3) by a pledge of both annual contributions 
under an annual contributions contract containing the covenant 
by the Secretary which is authorized by section 6 (g) of the United 
States Housing Act of 1937, and a loan under an agreement 
between the local public housing agency and the Secretary in 
which the public housing agency agrees to borrow from the Secre-
tary, and the Secretary agrees to lend to the public housing 
agency, prior to the maturity of the obligations involved, moneys 
in an amount which (together with any other moneys irrevocably 
committed under the annual contributions contract to the payment 
of principal and interest on such obligations) will suffice to pro-
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
669 
vide for the payment when due of all installments of principal 
and interest on such obligations, which moneys under the terms 
of the agreement are required to be used for the purpose of paying 
the principal and interest on such obligations at their maturity". 
AMENDMENTS 
TO L A N H A M 
ACT 
SEC. 207. (a) Section 606 of the Act of October 14,1940, as amended 
(42 U.S.C. 1.586), is amended by striking out that part of the first 
sentence in subsection (b) which follows the parenthetical phrase and 
inserting in lieu thereof a period, and by striking out all of the second 
sentence. 
(b) Section 606(c) (1) of such Act is amended by inserting before 
the semicolon at the end thereof the following: ", or, with the Secre-
tary's approval, used to finance the repair or rehabilitation of a project 
or part thereof conveyed to the public housing agency under this 
section". 
LEASED 
HOUSING 
42 u s e 1421b 
note. 
42 u s e 1421b. 
SEC. 208. Nothing in this title or any other provision of law author-
izes the Secretary of Housing and Urban Development to apply any 
policy or procedure established by him with respect to the rights of 
an owner under a lease entered into under section 23 of the United 
States Housing Act of 1937 if such lease was entered into prior to the 
effective date of such policy or procedure. 
LOW-INCOME HOUSING FOR T H E ELDERLY OR HANDICAPPED 
SEC. 209. The Secretary shall consult with the Secretary of Health, 
42 use 1438. 
Education, and Welfare to insure that special projects for the elderly 
or the handicapped authorized pursuant to United States Housing Act 
of 1937 shall meet acceptable standards of design and shall provide 
^"'®' P- ^^3. 
quality services and management consistent with the needs of the 
occupants. Such projects shall be specifically designed and equipped 
with such "related facilities" (as defined in section 202(d) (8) of the 
Housing Act of 1959) as may be necessary to accommodate the special 
^°^^' ?• ^^i. 
environmental needs of the intended occupants and shall be in support 
of and supported by the applicable State plans for comprehensive 
services pursuant to section 134 of the Mental Ketardation Facilities 
and Community Mental Health Center Construction Act of 1963 or 
^2 use 2674. 
State and area plans pursuant to title I I I of the Older Americans Act 
of 1965. 
42 use 3021. 
REVISION OF SECTION 2 0 2 PROGRAM FOR ELDERLY AND HANDICAPPED 
SEC. 210. (a) Section 202(a)(3) of the Housing Act of 1959 is 
12 use iroiq. 
amended by striking out all that follows "and shall bear interest at a 
rate" and inserting in lieu thereof "which is not more than a rate 
determined by the Secretary of the Treasury taking into consideration 
the current average market ;^ield on outstanding marketable obliga-
tions of the United States with remaining periods to maturity com-
parable to the average maturities of such loans, adjusted to the nearest 
one-eighth of 1 per centum, plus an allowance adequate in the judg-
ment of the Secretary to cover administrative costs and probable losses 
under the program." 
(b) Section 202(d) (4) of such Act is amended— 
(1) by striking out "a physical" in the second sentence and 
inserting in lieu thereof "an"; and 
670 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
(2) by inserting after the second sentence the following new 
sentence: "A person shall also be considered handicapped if such 
person is a developmentally disabled individual as defined in 
section 102(5) of the Developmental Disabilities Services and 
Facilities Construction Amendments of 1950." 
1
2 use i7oiq. 
(c) Section 202 of such Act is further amended by adding at the 
end thereof the following new subsection: 
"(f) In carrying out the provisions of this section, the Secretary 
shall seek to assure, pursuant to applicable regulations, that housing 
and related facilities assisted under this section will be in appropriate 
support of, and supported by, applicable State and local plans which 
respond to Federal program requirements by providing an assured 
range of necessary services for individuals occupying such housing 
(which services may include, among others, health, continuing educa-
tion, welfare, informational, recr-eational, homemaker, counseling, and 
referral services, transportation where necessary to facilitate access 
to social services, and services designed to encourage and assist recipi-
ents to use the services and facilities available to them), including 
plans approved by the Secretary of Health, Education, and Welfare 
pursuant to section 134 of the Mental Eetardation Facilities and Com-
42 use 2674. 
muuity Mental Health Center Construction Act of 1963 or pursuant 
42 use 3 021. 
to title III of the Older Americans Act of 1965." 
(d) Section 202(a) (4) of such Act is amended— 
(1) by inserting " ( A ) " immediately after "(4)"; 
(2) by inserting ", and the proceeds from notes or other obliga-
tions issued under subparagraph (B)," after "Amounts so appro-
priated" ; and 
(3) by adding at the end thereof the following new sub-
paragraphs : 
"(B) (i) To carry out the purposes of this section, the Secretary is 
authorized to issue to the Secretary of the Treasury notes or other 
obligations in an aggregate amount not to exceed $800,000,000, in such 
forms and denominations, bearing such maturities, and subject to 
such terms and conditions as may be prescribed by the Secretary of 
Interest rate. 
^j^g Treasury. Such notes or other obligations shall bear interest at a 
rate determined by the Secretary of the Treasury, taking into consid-
eration the current average market yield on outstanding marketable 
obligations of the United States of comparable maturities during the 
month preceding the issuance of the notes or other obligations. The 
Secretary of the Treasury is authorized and directed to purchase any 
notes and other obligations issued hereunder and for that purpose he 
is authorized to use as a public debt transaction the proceeds from the 
31 use 774. 
sale of any securities issued under the Second Liberty Bond Act; and 
the purposes for which securities may be issued under that Act are 
extended to include any purchase of such notes and obligations. The 
Secretary of the Treasury may at any time sell any of the notes or 
other obligations acquired by him under this section. AH redemptions, 
purchases, and sales by the Secretary of the Treasury of such notes or 
other obligations shall be treated as public debt transactions of the 
United States. 
"(ii) The receipts and disbursements of the fund shall not be 
included in the total of the Budget of the United States Government 
and shall be exempt from any limitation on annual expenditure or net 
lending. 
"(C) Amounts in the fund shall be available to the Secretary for 
the purpose of making loans under this section and for paying inter-
est on obligations issued under subparagraph (B), The aggregate 
loans made under this section in any fiscal year shall not exceed the 
88 STAT.] 
PUBLIC LAW 9 3 - 3 8 3 - A U G . 22, 1974 
671 
limits on such lending authority established for such year in appro-
priation Acts." 
(e) Section 202(a) of such Act is amended by adding at the end 
^2 use i7oiq. 
thereof the following new paragraph: 
"(5) To the maximum extent practicable, the Secretary shall use the 
services and facilities of the private mortgage industry in servicing 
mortgage loans made under this section." 
(f) Section 202(d) (8) of such Act is amended by inserting immedi-
ately after "families" the following: "residing in the project or in the 
area". 
(g) (1) In determining the feasibility and marketability of a proj- ^
^
^
^
^ ^^^ i7oiq 
ect under section 202 of the Housing Act of 1959, the Secretary shall 
consider the availability of monthly assistance payments pursuant to 
section 8 of the United States Housing Act of 1937 with respect to such 
Ante. p. 662. 
a project. 
(2) The Secretary shall insure that with the original approval of a 
project authorized pursuant to section 202 of the Housing Act of 1959, 
and thereafter at each annual revision of the assistance contract under 
section 8 of the United States Housing Act of 1937 with respect to 
units in such project, the project will serve both low- and moderate-
income families in a mix which he determines to be appropriate for 
the area and for viable operation of the project; except that the Sec-
retary shall not permit maintenance of vacancies to await tenants of 
one income level where tenants of another income level are available. 
SINGLE-FAMILT MORTGAGE ASSISTANCE 
SEC. 211. (a) Section 235 of the National Housing Act is amended— 
(1) by striking out "and by $200,000,000 on July 1, 1971" in 
subsection (h) (1) and inserting in lieu thereof "by $200,000,000 
on July 1, 1971, and by such sums as may be approved in appro-
priation Acts after June 30, 1974, and prior to July 1, 1976"; 
(2) by adding at the end of subsection (h) (1) the following: 
"Upon the expiration of one year following the date of enact-
ment of the Housing and Community Development Act of 1974, 
the Secretary shall not enter into new contracts for assistance pay-
ments under this section utilizing authority approved in appro-
priation Acts prior to July 1,1974."; 
(3) by striking out paragraph (2) of subsection (h) and 
inserting in lieu thereof the following: 
"(2) Assistance payments under this section may be made only 
with respect to a family whose income at the time of initial occupancy 
does not exceed 80 per centum of the median income for the area, as 
determined by the Secretary with adjustments for smaller and larger 
families, except that the Secretary may establish income ceilings 
higher or lower than 80 per centum of the median for the area on the 
basis of his findings that such variations are necessary because of pre-
vailing levels of construction costs, unusually high or low median 
family incomes, or other factors."; 
(4) by striking out "prior to July 1,1972" in subsection (h) (3) 
(B) and inserting in lieu thereof "on or after July 1,1969"; 
(5) by inserting after "mortgage" in the first sentence of sub-
section (i)(l) the following: "(including advances with respect 
to property construction or rehabilitation pursuant to a self-help 
program)"; 
(6) by striking out paragraph (3) (C) of subsection (i) and 
inserting in lieu thereof the following: 
"(C) be executed by a mortgagor who shall have paid in 
cash or its equivalent, on account of the property, at least an 
12 u s e 1715z. 
12 u s e 1715z. 
672 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
amount equal to 3 per centum of the Secretary's estimate of 
the cost of acquisition."; and 
(7) by striking out "October 1, 1974" in subsection (m) and 
inserting in lieu thereof "June 30,1976". 
(b) Section 235(a) of such Act is amended by inserting after "this 
section" at the end of the second sentence the following: "or which 
mortgages are assisted under a State or local program providing assist-
ance through loans, loan insurance or tax abatement". 
(c) (1) The last proviso in section 235 (b) (2) of such Act is amended 
by striking out "$18,000", "$21,000", "$21,000", and "$24,000" and 
inserting in lieu thereof "$21,600", "$25,200", "$25,200", and "$28,800", 
respectively. 
(2) Section 235 (i) (3) (B) of such Act is amended by striking out 
"$18,000", "$21,000", "$21,000", and "$24,000" and inserting in lieu 
thereof "21,600", "$25,200", "$25,200", and "$28,800", respectively. 
12 u s e 1715Z-1. 
MULTIFAMILY MORTGAGE 
ASSISTANCE 
SEC. 212. Section 236 of the National Housing Act is amended— 
(1) by inserting "(1)" after "(f)" at the beginning of subsec-
tion (f), and by redesignating clauses (1) and (2) of such sub-
section as clauses (A) and (B), respectively; 
(2) by adding at the end of subsection (f) (1) the following: 
"With respect to those projects which the Secretary determines have 
separate utility metering for some oi- all dwelling units, the Secretary 
is authorized— 
"(i) to permit the basic rental charge and the fair market rental 
charge to be determined on the basis of operating the project 
without the payment of the cost of utility services used by such 
dwelling units; and 
"(ii) to permit the charging of a rental for such dwelling units 
at such an amount less than 25 per centum of a tenant's income as 
the Secretary determines represents a proportionate decrease for 
the utility charges to be paid by such tenant, but in no case shall 
such rental be lower than 20 per centum of a tenant's income. 
"(2) With respect to 20 per centum of the dwelling units in any 
project made subject to a contract under this section after the date 
of enactment of the Housing and Community Development Act of 
1974, the Secretary shall make, and contract to make, additional assist-
ance payments to the project owner on behalf of tenants whose incomes 
are too low for them to afford the basic rentals with 25 per centum of 
their income or such lower per centum as may be established pursuant 
to the provisions of clause (ii) of the last sentence of paragraph (1). 
The additional assistance payments authorized by this paragraph with 
respect to any dwelling unit shall be the amount required to reduce the 
rental payment by the tenant to 25 per centum of the tenant's income 
or such lower per centum as may be established pursuant to the provi-
sions of clause (ii) of the last sentence of paragraph (1). In no case 
shall such rental payment be reduced below an amount equal to utility 
costs attributable to the unit occupied by the tenant, unless the Secre-
tary determines that the application of this requirement in any area 
would result in undue hardship because of unusually high utility costs 
prevailing seasonally or otherwise in such area. Notwithstanding the 
foregoing provisions of this paragraph, the Secretary may— 
"(A) reduce such 20 per centum requirement in the case of any 
project if he determines that such action is necessary to assure the 
economic viability of the project; or 
"(B) increase such 20 per centum requirement in the case of any 
project if he determines that such action is necessary and feasible 
12 u s e 1715Z-1. 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
673 
in order to assure, insofar as is practicable, that there is in the 
project a reasonable range in the income levels of tenants, or that 
such action is to be taken to meet the housing needs of elderly or 
handicapped families. 
"(3) For each project there shall be established an initial operating 
expense level, which shall be the sum of the cost of utilities and local 
property taxes payable by the project owner at the time the Secre-
tary determines the property to be fully occupied, taking into account 
anticipated and customary vacancy rates. At any time subsequent to 
the establishment of an initial operating expense level, the Secretary is 
authorized to make, and contract to make, additional assistance pay-
ments to the project owner in an amount up to the amount by which 
the sum of the cost of utilities and local property taxes exceeds the 
initial operating expense level, but not to exceed the amount required 
to maintain the basic rentals of any units at levels not in excess of 30 
per centum, or such lower per centum not less than 25 per centum as 
shall reflect the reduction permitted in clause (ii) of the last sentence 
of paragraph (1), of the income of tenants occupying such units. Any 
contract to make additional assistance payments may be amended peri-
odically to provide for appropriate adjustments in the amount of the 
assistance payments. Additional assistance payments shall be made 
pursuant to this paragraph only if the Secretary finds that the increase 
in the cost of utilities or local property taxes, is reasonable and is 
comparable to cost increases affecting other rental projects in the 
community."; 
(3) by striking out subsection (g) and inserting in lieu thereof 
the following: 
"(g) The project owner shall, as required by the Secretary, accumu-
late, safeguard, and periodically pay to the Secretary all rental 
charges collected in excess of the basic rental charges. Such excess 
charges shall be credited to a reserve fund to be used by the Secretary 
to make additional assistance payments as provided in paragraph 
(3) of subsection (f). During any period that the Secretary determines 
that the balance in the reserve fund is adequate to meet the estimated 
additional assistance payments, such excess charges shall be credited to 
the appropriation authorized by subsection (i) and shall be available 
until the end of the next fiscal year for the purpose of making assist-
ance payments with respect to rental housing projects receiving 
assistance under this section. For the purpose of this subsection and 
paragraph (3) of subsection (f), the initial operating expense level 
for any project assisted under a contract entered into prior to the date 
of enactment of the Housing and Community Development Act of 
1974 shall be established by the Secretary not later than 180 days after 
the date of enactment of such Act."; 
(4) by striking out "and by $200,000,000 on July 1, 1971" in 
subsection (i) (1) and inserting in lieu thereof "by $200,000,000 on 
July 1,1971, and by $75,000,000 on July 1,1974";" 
(5) by striking out paragraphs (2) and (3) of subsection (i) 
and inserting in lieu thereof the following: 
"(2) Contracts for assistance payments under this section may be 
entered into only with respect to tenants whose incomes do not exceed 
80 per centum of the median family income for the area, as determined 
by the Secretary with adjustments for smaller and larger families, 
except that the Secretary may establish income ceilings higher or 
lower than 80 per centum of the median for the area on the basis of 
his findings that such variations are necessary because of prevailing 
levels of construction costs, unusually high or low family incomes, 
or other factors. 
674 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
"(3) Not less than 10 per centum of the total amount of contracts 
for assistance payments authorized by appropriation Acts to be made 
after June 30, 1974, shall be available for use only with respect to 
dwellings, or dwelling units in projects, which are approved by the 
Secretary prior to rehabilitation. 
"(4) At least 20 per centum of the total amount of contracts for 
assistance payments authorized in appropriation Acts to be made 
after June 30, 1974, shall be available for use only with respect to 
projects which are planned in whole or in part for occupancy by 
elderly or handicapped families. As used in this paragraph, the term 
'elderly families' means families which consist of two or more per-
sons the head of which (or his spouse) is sixty-two years of age or 
over or is handicapped. Such term also means a single person who 
is sixty-two years of age or over or is handicapped. A person shall 
be considered handicapped if such person is determined, pursuant to 
regulations issued by the Secretary, to have an impairment which (A) 
is expected to be of long-continued and indefinite duration, (B) sub-
stantially impedes his ability to live independently, and (C) is of 
such a nature that such ability could be improved by more suitable 
housing conditions."; 
1
2 use 1715Z.1. 
(g) |3y striking out "October 1, 1974" in subsection (n) and 
inserting in lieu thereof "June 30,1976"; and 
(7) by adding at the end thereof the following: 
"(p) The Secretary is authorized to enter into contracts with State 
or local agencies approved by him to provide for the monitoring and 
supervision by such agencies of the management by private sponsors 
of projects assisted under this section. Such contracts shall require 
that such agencies promptly report to the Secretary any deficiencies 
in the management of such projects in order to enable the Secretary 
to take corrective action at the earliest practicable time." 
LOCAL HOUSING ASSISTANCE P L A N S ; ALLOCATION OF HOUSING FUNDS 
42 u s e 1439. 
Ante, 
p. 653. 
12 u s e 1701q. 
SEC. 213. (a) (1) The Secretary of Housing and Urban Develop-
ment, upon receiving an application for housing assistance under the 
United States Housing Act of 1937, section 235 or 236 of the National 
i7\5z^i^ 1715Z, 
Housing Act, section 101 of the Housing and Urban Development Act 
1
2 use 1701s 
of 1965, or section 202 of the Housing Act of 1959, if the unit of gen-
"°i*9"TTsr i7ni^ 
^^^ local government in which the proposed assistance is to be pro-
vided has an approved housing assistance plan, shall— 
(A) not later than ten days after receipt of the application, 
notify the chief executive officer of such unit of general local gov-
ernment that such application is under consideration; and 
(B) afford such unit of general local government the oppor-
tunity, during the thirty-day period beginning on the date of 
such notification, to object to the approval of the application on 
the grounds that the application is inconsistent with its housing 
assistance plan. 
(2) If the unit of general local government objects to the applica-
tion on the grounds that it is inconsistent with its housing assistance 
plan, the Secretary may not approve the application unless he deter-
mines that the application is consistent with such housing assistance 
plan. If the Secretary determines, that such application is consistent 
with the housing assistance plan, he shall notify the chief executive 
officer of the unit of general local government of his determination 
and the reasons therefor in writing. If the Secretary concurs with the 
objection of the unit of local government, he shall notify the applicant 
stating the reasons therefor in writing. 
88 STAT. ] 
PUBLIC LAW 93.383-AUG. 22, 1974 
675 
(3) If the Secretary does not receive an objection by the close of 
the period referred to in paragraph (1)(B), he may approve the 
application unless he finds it inconsistent with the housing assistance 
plan. If the Secretary determines that an application is inconsistent 
with a housing assistance plan, he shall notify the applicant stating 
the reasons therefor in writing. 
(4) The Secretary shall make the determinations referred to in 
paragraphs (2) and (3) within thirty days after he receives an objec-
tion pursuant to paragraph (1) (B) or within thirty days after the 
close of the period referred to in paragraph (1)(JB), whichever is 
earlier. 
(5) As used in this section, the term "housing assistance plan" 
"Housing as-
means a housing assistance plan submitted and approved under section ^
^
^ ^"'^^ ^ ^"' 
104 of this Act or, in the case of a unit of general local government 
not participating under title I of this Act, a housing plan approved by 
the Secretary as meeting the requirements of this section. 
(b) The provisions of subsection (a) shall not apply to— 
(1) applications for assistance involving 12 or fewer units in a 
single project or development; 
(2) applications for assistance with respect to housing in new 
community developments approved under title IV of the Housing 
and Urban Development Act of 1968 or title VII of the Housing 
^2 use 3901. 
and Urban Development Act of 1970 which the Secretary deter- 
42 use 4501. 
mines are necessary to meet the housing requirements under such 
title; or 
(3) applications for assistance with respect to housing financed 
by loans or loan guarantees from a-State or agency thereof, except 
that the provisions of subsection (a) shall apply where the unit 
of general local government in which the assistance is to be pro-
vided objects in its housing assistance plan to the exemption pro-
vided by this paragraph. 
(c) For areas in which an approved local housing assistance plan is 
not applicable, the Secretary shall not approve an application for hous-
ing assistance unless he determines that there is a need for such assist-
ance, taking into consideration any applicable State housing plans, 
and that there is or will be available in the area public facilities and 
services adequate to serve the housing proposed to be assisted. The 
Secretary shall afford the unit of general local government in which 
the assistance is to be provided an opportunity, during a 30-day period 
following receipt of an application by him, to provide comments or 
information relevant to the determination required to be made by the 
Secretary under this subsection. 
(d)(1) In allocating financial assistance under the provisions of law 
specified in subsection (a) of this section, the Secretary, so far as prac-
ticable, shall consider the relative needs of different areas and 
communities as reflected in data as to population, poverty, housing 
overcrowding, housing vacancies, amount of substandard housing, or 
other objectively measurable conditions, subject to such adjustments 
as may be necessary to assist in carrying out activities designed to 
meet lower income housing needs as described in approved housing 
assistance plans submitted by units of general local government or 
combinations of such units assisted under section 107(a)(2) of this 
Act. The amount of assistance allocated to nonmetropolitan areas 
pursuant to this section in any fiscal year shall not be less than 20 nor 
more than 25 per centum of the total amount of such assistance. 
(2) In order to facilitate the provision of, and long-range planning 
for, housing for persons of low- and moderate-income in new commu-
nity developments approved under title IV of the Housing and Urban 
Development Act of 1968 and title VII of the Housing and Urban 
676 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
42 use 4501. 
Development Act of 1970, the Secretary shall reserve such housing 
assistance funds as he deems necessary for use in connection with such 
new community developments. 
(3) The Secretary may reserve such housing assistance funds as he 
deems appropriate for use by a State or agency thereof. 
TITLE III—MORTGAGE CREDIT ASSISTANCE 
INSURED ADVANCES 
SEC. 301. Title V of the National Housing Act is amended by adding 
at the end thereof the following new section: 
u ADVANCES 
1
2 use i735f.3. 
"SEC. 525. The Secretary is authorized to insure mortgage proceeds 
advanced during construction or rehabilitation or otherwise prior to 
final endorsement of a project mortgage for the purpose of (1) financ-
ing improvements to the property and the purchase of materials andl 
building components delivered to the property, and (2) providing 
funds to cover the cost of building components where such components 
have been asssembled and specifically identified for incorporation into 
the property but are located at a site other than the mortgaged prop-
erty, with such security as the Secretary may require." 
INCREASE I N MAXIMUM MORTGAGE AMOUNTS UNDER F H A ONE- TO FOUR-
FAMILY MORTGAGE INSURANCE 
PROGRAMS 
1
2 use 1709. 
gj,^3_ 3Q2. (a) Section 203(b)(2) of the National Housing Act is 
ivmended by striking out "$33,000", "$35,750", and "$41,250" wherever 
they appear and inserting in lieu thereof "$45,000", "$48,750", and 
"$56,000", respectively. 
12 use 1715k. 
(b) Section 220(d) (3) (A) of such Act is amended by striking out 
"$33,000", "$35,750", and "$41,250" wherever they appear and insert-
ing in lieu thereof "$45,000", "$48,750", and "$56,000", respectively. 
1
2 use 1715 L 
(c) Section 221(d) (2) (A) of such Act is amended— 
(1) by striking out "$18,000", "$21,000", "$24,000", "$32,400", 
and "$39,600" in the matter preceding the first proviso and insert-
ing in lieu thereof "$21,600", "$25,200", "28,000", "$38,880", and 
"^7,520", respectively; and 
(2) by striking out "$21,000", "$24,000", "$30,000", "$38,400", 
and "$45,600" in the second proviso and inserting in lieu thereof 
"$25,200", "$28,800", "$36,000", "$46,080", and "$54,720", respec-
tively. 
(d) Section 222(b)(2) of such Act is amended by striking out 
"$33,000" and inserting in lieu thereof "$45,000". 
(e) Section 234(c) of such Act is amended by striking out "$33,000" 
and inserting in lieu thereof $45,000". 
INCREASE I N MAXIMUM MORTGAGE AMOUNTS UNDER F H A 
MULTIFAMILT 
MORTGAGE INSURANCE PROGRAMS 
12 u s e 171Sm. 
12 u s e 1715y. 
12 u s e 1713. 
SEC. 303. (a) (1) Section 207(c) (3) of the National Housing Act is 
amended by striking out "$9,900", "$13,750", "$16,500", "$20,350", 
"$23,100", and "$2,500" in the matter preceding the first semicolon and 
inserting in lieu thereof "$13,000", "$18,000", "$21,500", "$26,500", 
"$30,000^', and "$3,250", respectively. 
(2) Section 207(c) (3) of such Act is further amended by striking 
out "$11,550", "$16,500", "$19,800", "$24,750", and "$28,050" in the 
12 u s e 1715e. 
12 u s e 171.5k. 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
677 
matter following the first semicolon and inserting in lieu thereof 
"$15,000", "21,000", "$25,750", "$32,250", and "$36,465", respectively. 
(b) (1) Section 213(b) (2) of such Act is amended by striking out 
"$9,900", "$13,750", "$16,500", "$20,350]', and "$23,100" in the matter 
preceding the first proviso and inserting in lieu thereof "$13,000", 
"$18,000", "$21,500", "$26,500", and "$30,000", respectively. 
(2) Section 213(b) (2) of such Act is further amended by striking 
out "$11,550", "$16,500", "$19,800", "$24,750", and "$28,050" in the first 
proviso and inserting in lieu thereof "$15,000", "$21,000", "$25,750", 
"$32,250", and "$36,465", respectively. 
(c) (1) Section 220(d) (3) (B) (iii) of such Act is amended by strik-
ing out "$9,900", "$13,750", "$16,500", "$20,350", and "$23,100" in the 
matter preceding "except" where it first appears and inserting in lieu 
thereof "$13,000", "$18,000", "$21,500", "$26,500", and "$30,000", 
respectively. 
(2) Section 220Cd) (3) (B) (iii) of such Act is further amended 
by striking out "$11,550", "$16,500", "$19,800", "$24,750", and 
"$28,050" in the matter following "except" where it first appears and 
inserting in lieu thereof "$15,000", "$21,000", "$25,750", "$32,250" 
and "$36,465", respectively. 
(d) Section 221(d) (3) (ii) of such Act is amended— 
1
2 use nisi. 
(A) by striking out "$9,200", "$12,937.50", "$15,525", "$19,550", 
and "$22,137.50" and inserting in lieu thereof 
"$11,240", 
"$15,540", "$18,630", "$23,460", and "$26,570", respectively; and 
(B) by striking out "$10,925", "$13,500", "$18,400", "$23,000", 
and "$26,162.50" and inserting in lieu thereof "$13,120", "$16,200", 
"$22,080", "$27,600", and "$32,000", respectively. 
(e) (1) Section 221(d) (4) (ii) of such Act is amended by striking 
out "$9,200", "$12,937.50", "$15,525", "$19,550", and "$22,137.50" in 
the matter preceding the first semicolon and inserting in lieu thereof 
"$12,300", "$17,188", "$20,525", "$24,700", and "$29,038", respectively. 
(2) Section 221(d) (4) (ii) of such Act is further amended by strik-
ing out "$10,525", "$15,525", "$18,400", "$23,000", and "$26,162.50" 
in the matter following the first semicolon and inserting in lieu 
thereof "$13,975", "$20,025", "$24,350", "$31,500", and "$34,578", 
resDectivelv 
(f) (1) Section 231(c) (2) of such Act is amended by striking out 
' ' ''''' '''^"• 
"$8,800", "$12,375", "$14,850", "$18,700", and "$21,175" in the matter 
preceding the first semicolon and inserting in lieu thereof "$12,300", 
"$17,188", "$20,525", "$24,700", and "$29,038", respectively. 
(2) Section 231(c) (2) of such Act is further amended by striking 
out "$10,450", "$14,850", "$17,600", "$22,000", and "$25,025" in the 
matter following the first semicolon and inserting in lieu thereof 
"$13,975", "$20,025", "$24,350", "$31,500", and "$34,578", respectively. 
(g) (1) Section 234(e) (3) of such Act is amended by striking out 
^^ use ivisy. 
"$9,900", "$13,750", "$16,500", "$20,350", and "$23,100" in the matter 
preceding the first proviso and inserting in lieu thereof "$13,000", 
"$18,000", "$21,500", "$26,500", and "$30,000", respectively. 
(2) Section 234(e) (3) of such Act is further amended by striking 
out "$11,550", "$16,500", "$19,800", "$24,750", and "$28,050" in the 
first proviso and inserting in lieu thereof "$15,000", "$21,000". 
"$25,750", "$32,250", and "36,465", respectively. 
ELIMINATION OF PROJECT MORTGAGE DOLLAR LIMITS 
SEC. 304. (a)(1) Section 207(c) of the National Housing Act is 
amended by striking out paragraph (1). 
(2) Section 207(c) (3) of such Act is amended by striking out "or 
$1,000,000 per mortgage for trailer courts or parks". 
38-194 O - 76 - 46 Pt. 1 
12 u s e 1713. 
678 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
12 use i7i5e. 
(b) SectioH 213(b) of such Act is amended by striking out 
paragraph (1). 
(c) Section 213(c) of such Act is amended by striking out "not to 
exceed $12 500 000 and". 
1
2 use 1715k. 
(^) Section'220(d) (3) (B) of such Act is amended by striking out 
clause (i). 
1
2 use 1715Z. 
^g^ Section 221(d) of such Act is amended— 
(1) by striking out clause (i) in paragraph (3) ; and 
(2) by striking out clause (i) in paragraph (4). 
1
2 use i7i5v. 
(f) Section 231(c) of such Act is amended by striking out 
paragraph (1). 
1
2 use 1715W. 
(g) Section 232(d) (2) of such Act is amended by striking out "not 
to exceed $12,500,000, and". 
12 use 1715y. 
(1^) Section 234(e) of such Act is amended by striking out 
paragraph (1). 
(i) Section 242(d) (2) of such Act is amended by striking out "not 
to exceed $50,000,000, and". 
i2usei748h.2. 
(j)(l) Section 810(f) of such Act is amended by striking out 
" (1) not to exceed $5,000,000 or (2)". 
(2) Section 810(g) of such Act is amended by striking out "not to 
exceed $5,000,000 and". 
(k) Section 1002(c) of such Act is amended by striking out the 
second sentence. 
i2usei749aaa. 
(j-^ Sectiou 1101(c) of sucli Act is amended by striking out para-
graph (1). 
ENERGY 
CONSERVATION 
SEC. 305. Title V of the National Housing Act (as amended by sec-
ion 301 of this Act) is amended by adding at the end thereof the fol-
12 u s e 1715Z-7. 
12 u s e 1749bb. 
lowing new section 
'ENERGY CONSERVATION 
12 u s e 1735f-4. 
"SEC. 526. To the maximum extent feasible, the Secretary of Housing 
and Urban Development shall promote the use of energy saving tech-
niques through mininuim property standards established by him for 
newly constructed residential housing subject to mortgages insured 
under this Act." 
COMPENSATION FOR DEFECTS 
12 u s e 1735b. 
SEC 306. Section 518(b) of the National Housing Act is amended to 
read as follows: 
"(b) The Secretary is authorized to make expenditures to correct, 
or to reimburse the owner for the correction of, structural or other 
major defects which so seriously affect use and livability as to create a 
serious danger to the life or safety of inhabitants of any one or two 
family dwelling which is covered by a mortgage insured under section 
235 of this Act or which is located in an older, declining urban area 
^yWi^^^ ^^°^' 
and is covered by a mortgage insured under section 203 or 221 on or 
after August 1, 1968, but prior to January 1, 1973, and which is more 
than one year old on the date of the issuance of the insurance commit-
ment, if (1) the owner requests assistance from the Secretary not later 
than one year after the insurance of the mortgage, or, in the case of a 
dwelling covered by a mortgage insured under section 203 or 221 the 
insurance commitment for which was issued on or after August 1,1968, 
but prior to January 1, 1973, not more than one year after the date of 
enactment of the Housing and Community Development Act of 1974, 
and (2) the defect is one that existed on the date of the issuance of the 
insurance commitment and is one that a proper inspection could 
reasonably be expected to disclose. The Secretary may require from the 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
679 
seller of any such dwelling an agreement to reimburse him for any 
payments made pursuant to this subsection with respect to such dwell-
ing. Expenditures pursuant to this subsection shall be the obligation 
of the Special Risk Insurance Fund." 
» 
CO-INSURANCE 
SEC. ^07. Title II of the National Housing Act is amended by adding 
at the end thereof the following new section: 
u 
CO-INSURANCE 
"SEC. 244. (a) In addition to providing insurance as otherwise 
uusc i7isz-9. 
authorized under this Act, and notwithstanding any other provision of 
this Act inconsistent with this section, the Secretary, upon request of 
any mortgagee and for such mortgage insurance premium as he may 
prescribe (which premium, or other charges to be paid by the mort-
gagor, shall not exceed the premium, or other charges, that would 
otherwise be applicable), may insure and make a commitment to insure 
under any provision of this title any mortgage, advance, or loan 
otherwise eligible under such provision, pursuant to a co-insurance 
contract providing that the mortgagee will— 
"(1) assume a percentage of any loss on the insured mortgage, 
advance, or loan in direct proportion to the amount of the 
co-insurance, which co-insurance shall not be less than 10 per 
centum, subject to any reasonable limit or limits on the liability 
of the mortgagee that may be specified in the event of unusual or 
catastrophic losses that may be incurred by any one mortgagee; 
and 
"(2) carry out (under a delegation or otherwise and with or 
without compensation but subject to audit, exception, or review 
requirements) such credit approval, appraisal, inspection, com-
mitment, property disposition, or other functions as the Secretary, 
pursuant to regulations, shall approve as consistent with the 
purposes of this Act. 
Any contract of co-insurance under this section shall contain such 
provisions relating to the sharing of premiums on a sound actuarial 
basis, establishment of mortgage reserves, manner of calculating 
insurance benefits, conditions with respect to foreclosure, handling and 
disposition of property prior to claim or settlement, rights of 
assignees (which may elect not to be subject to the loss sharing provi-
sions), and other similar matters as the Secretary may prescribe 
pursuant to regulations. 
"(b) No insurance shall be granted pursuant to this section with 
respect to dwellings or projects approved for insurance prior to the 
beginning of construction unless the inspeciion of such construction 
is conducted in accordance with at least the minimum standards and 
criteria used with respect to dwellings or projects approved for mort-
gage insurance pursuant to other provisions of this title. 
"(c) No insurance shall be granted pursuant to this section unless 
the Secretary has, after due consultation with the mortgage lending 
industry, determined that the demonstration program of co-insurance 
authorized by this section will not disrupt the mortgage market or 
reduce the availability of mortgage credit to borrowers who depend 
upon mortgage insurance provided under this Act. 
"(d) No mortgage, advance, or loan shall be insured pursuant to 
this section after June 30, 1977, except pursuant to a commitment to 
insure made before that date. The aggregate principal amount of mort-
gages and loans insured pursuant to this section in any fiscal year 
680 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
beginning on or after July 1,1974, and ending prior to October 1,1977, 
shall not exceed 20 per centum of the aggregate principal amount of 
all mortgages and loans insured under this title during such fiscal year. 
The overall percentage limitation specified in the preceding sentence 
shall also apply separately within each of the following categories— 
"(1) mortgages and loans covering one- to four-family dwell-
ings; and 
"(2) mortgages and loans covering projects with five or more 
dwelling units. 
"(e) The Secretary shall not withdraw, deny, or delay insurance 
otherwise authorized under any other provision of this Act by reason 
of the availability of insurance pursuant to this section. The Secretary 
shall exercise his authority under this section only to the extent that 
he finds that the continued exercise of such authority will not adversely 
affect the flow of mortgage credit to older and declining neighborhoods 
and to the purchasers of older and lower cost housing. 
c^^^esV° 
"(^) '^^^ Secretary shall submit to the Congress a report, not later 
than March 1, 1975, and annually thereafter, describing operations 
under this section, including the extent of mortgagee participation and 
any special problems encountered, particularly with respect to the flow 
of mortgage credit to older and declining neighborhoods and to pur-
chasers of older and lower cost housing, and setting forth any recom-
mendations he may deem appropriate with respect to the continuation 
or modification of the authority contained in this section. If the Sec-
retary shall fail to submit any such report by the date due, his author-
ity under this section shall terminate." 
EXPERIMENTAL 
FINANCING 
SEC. 308. Title I I of the National Housing Act (as amended by sec-
tion 307 of this Act) is amended by adding at the end thereof the fol-
lowing new section: 
"EXPERIMENTAL FINANCING 
1
2 use 1715Z-10. 
"gEC. 245. The Secretary may insure on an experimental basis under 
any provision of this title mortgages and loans with provisions of 
varying rates of amortization corresponding to anticipated variations 
in family income to the extent he determines such mortgages or loans 
(1) have promise for expanding housing opportunities or meet special 
needs, (2) can be developed to include any safeguards for mortgagors 
or purchasers that may be necessary to offset special risks of such mort-
gages, and (3) have a potential for acceptance in the private market. 
The outstanding aggregate principal amount of mortgages which are 
insured pursuant to this section may not exceed 1 per centum of the 
outstanding aggregate principal amount of mortgages and loans esti-
mated to be insured during any fiscal year under this title. A mortgage 
or loan may not be insured pursuant to this section after June 30,1976, 
except pursuant to a commitment entered into prior to such date." 
12 u s e 1703. 
PROPERTY IMPROVEMENT AND MOBILE HOME LOANS 
SEC. 309. (a) Section 2(b) of the National Housing Act is amended— 
(1) by striking out "$5,000" in clause (1) and inserting in lieu 
thereof "$10,000"; 
(2) by striking out "if such obligation" in clause (2) and all 
that follows down through "the general economy, and" and insert-
ing in lieu thereof the following: "if such obligation has a matu-
rity in excess of twelve years and thirty-two days, except that"; 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
681 
(3) by striking out "twelve years and thirty-two days (fifteen 
years and thirty-two days in the case of a mobile home composed 
of two or more modules)" in the proviso in clause (2) and insert-
ing in lieu thereof "fifteen years and thirty-two days"; and 
(4) by striking out "$15,000", "$2,500", and "seven years" in 
the third proviso in clause (3) and inserting in lieu thereof 
"$25,000", "$5,000", and "twelve years", respectively. 
(b) (1) Section 2(a) of such Act is amended by adding at the end 
1
2 use 1703. 
thereof the following new paragraph: 
"Alterations, repairs, and improvements upon or in connection with 
existing structures may include the provision of fire safety equipment, 
energy conserving improvements, or the installation of solar energy 
systems. As used in this section— 
Definitions. 
"(1) the term 'fire safety equipment' means any device or facil-
ity which is designed to reduce the risk of personal injury or 
property damage resulting from fire and is in conformity with 
such criteria and standards as shall be prescribed by the Secretary; 
"(2) the term 'energy conserving improvements' means any 
addition, alteration, or improvement to an existing or new struc-
ture which is designed to reduce the total energy requirements of 
that structure, and which is in conformity with such criteria and 
standards as shall be prescribed by the Secretary in consultation 
with the National Bureau of Standards; and 
"(3) the term 'solar energy system' means any addition, altera-
tion, or improvement to an existing or new structure which is 
designed to utilize solar energy to reduce the energy requirements 
of that structure from other energy sources, and which is in con-
formity with such criteria and standards as shall be prescribed 
by the Secretary in consultation with the National Bureau of 
Standards." 
(2) The first sentence of section 2(a) of such Act is amended by 
inserting before the period at the end thereof the following: "or 
financing the purchase of a lot on which to place such home and paying 
expenses reasonably necessary for the appropriate preparation of such 
lot, including the installation of utility connections, sanitary facilities, 
and paving, and the construction of a suitable pad, or financing only 
the acquisition of such a lot either with or Avithout such preparation 
by an owner of a mobile home.". 
(3) Section 2(b) of such Act is amended by adding at the end 
thereof the following new sentence: "Notwithstanding the foregoing 
limitations, any loan to finance fire safety equipment for a nursing 
home, extended health care facility, intermediate health care facility, 
or other comparable health care facility may involve such principal 
amount and have such maturity as the Secretary may prescribe.". 
(c) Clause (i) in the first paragraph of section 2(a) of such Act 
is amended by inserting "or mobile homes" immediately after "in 
connection with existing structures". 
(d) Section 2(b) of such Act (as amended by subsection (b)(3) 
of this section) is amended by adding at the end thereof the following 
new paragraphs: 
"Notwithstanding the limitations contained in the first proviso to 
clause (2) of the preceding sentence, a loan financing the purchase of 
a mobile home and an undeveloped lot on which to place the home 
shall— 
"(A) involve an amount not exceeding (i) the maximum 
amount under clause (1) of the first paragraph of this subsection, 
and (ii) such amount not to exceed $5,000 as may be necessary to 
cover the cost of purchasing the lot; and 
et seq 
682 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
"(B) have a maturity not exceeding fifteen years and thirty-
two days (twenty years and thirty-two days in the case of a 
mobile home composed of two or more modules). 
"A loan financing the purchase of a mobile home and a suitably 
developed lot on which to place the home shall— 
"(A) involve an amount not exceeding (i) the maximum 
amount under clause (1) of the first paragraph of this subsection, 
and (ii) such amount not to exceed $7,500 as may be necessary to 
cover the cost of purchasing the lot; and 
"(B) have a maturity not exceeding fifteen years and thirty-
two days (twenty years and thirty-two days in the case of a 
mobile home composed of two or more modules). 
"A loan financing the purchase, by an owner of a mobile home 
which is the principal residence of that owner, of only a. lot on which 
to place that mobile home shall— 
"(A) involve such an amount as may be necessary to cover the 
cost of purchasing the lot but not exceeding (i) $5,000 in the case 
of an undeveloped lot, or (ii) $7,500 in the case of a developed 
lot; and 
"(B) have a maturity not exceeding ten years and thirty-two 
days. 
A mobile home lot loan may be made only if the owner certifies that he 
will place his mobile home on the lot acquired with such loan within 
six months after the date of such loan." 
(e) The last sentence of section 3(a) of the Act entitled "An Act to 
^^^ysc 1801 
amend chapter 37 of title 38 of the United States Code with respect 
to the veterans' home loan program, to amend the National Housing 
xVct with respect to interest rates on insured mortgages, and for other 
purposes," approved May 7, 1968, as amended (12 U.S.C. 1709-1), is 
amended by striking out ", and which represent loans and advances of 
credit made for the purpose of financing purchases of mobile homes,". 
DOWNPAYMENT REQUIREMENTS FOR REGULAR EHA ONE- TO FOUR-FAMILY 
MORTGAGES 
SEC. 310. (a) The first and second sentences of section 203(b) (2) of 
1
2 use 1709. 
fi^Q National Housing Act are each amended— 
(1) by striking out "$15,000" in clause (i) and inserting in lieu 
thereof "$25,000"; 
(2) by striking out "$15,000" and "$25,000" in clause (ii) and 
inserting in lieu thereof "$25,000" and "$35,000", respectively; 
and 
(3) by striking out "$25,000" in clause (iii) and inserting in 
lieu thereof "$35,000". 
1
2 use 1715k. 
(b) Section 220(d) (3) (A) (i) of such Act is amended by— 
(1) by striking out "$15,000" in each clause numbered (1) and 
inserting in lieu thereof "$25,000"; 
(2) by striking out "$15,000" and "$25,000" in each clause num-
bered (2) and inserting in lieu thereof "$25,000" and "$35,000", 
respectively; 
and 
(3) by striking out "$25,000" in each clause numbered (3) and 
inserting in lieu thereof "$35,000". 
(c) Section 222(b) (3) of such Act is amended to read as follows: 
"(3) have a principal obligation not in excess of the sum of (i) 
97 per centum of $25,000 of the appraised value of the property as 
of the date the mortgage is accepted for insurance, (ii) 90 per 
centum of such value in excess of $25,000 but not in excess of 
$35,000, and (iii) 80 per centum of such value in excess of 
$35,000; and". 
12 u s e 1715m. 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
683 
(d) That part of clause (A) of the third sentence of section 234(c) 
of such Act which begins "and not to exceed" is amended to read as 
^^ ^^^ i7i5y. 
follows "and not to exceed the sum of (i) 97 per centum of $25,000 of 
the appraised value of the property as of the date the mortgage is 
accepted for insurance, (ii) 90 per centum of such value in excess of 
$25,000 but not in excess of $35,000, (iii) 80 per centum of such value 
in excess of $35,000". 
12 use 1715n. 
12 use 1715e. 
MULTIFAMILY MORTGAGES 
SEC. oil. (a) Section 223 of the National Housing Act is amended 
by adding at the end thereof the following new subsections: 
"(f) Notwithstanding any of the provisions of this Act, the Secre-
tary is authorized, in his discretion, to insure under any section of this 
title a mortgage executed in connection with the purchase of refi-
nancing of an existing multifamily housing project. In the case of 
refinancing under this subsection of property located in an older, 
declining urban area, the Secretary shall prescribe such terms and 
conditions as he deems necessary to assure that— 
"(1) the refinancing is used to lower the monthly debt service 
only to the extent necessary to assure the continued economic via-
bility of the project, taking into account any rent reductions to be 
implemented by the mortgagor; and 
"(2) during the mortgage term no rental increases shall be 
made except those which are necessary to offset actual and reason-
able operating expense increases or other necessary expense 
increases approved by the Secretary. 
"(g) Notwithstanding any other provisions of this Act, the Secre-
tary may, in his discretion, insure a mortgage covering a multifamily 
housing project including units which are not self-contained." 
(b) Section 213(b) (2) of such Act is amended by striking out "97 
per centum" and inserting in lieu thereof "98 per centum". 
GROUP PRACTICE FACILITIES 
SEC. 312. (a) Title X I of the National Housing Act is amended— 
(1) by inserting after "unit or organization" in section 1101 i2usei749aaa. 
(b) (1) the following: "or other mortgagor"; 
(2) by inserting after "group practice facility" in section 1101 
(b) (3) the following: "or medical practice facility"; 
(3) by inserting after "group practice facility" in section 1101 
(e) the following: "or medical practice facility"; 
(4) by inserting after "group practice facility" in section 
1101 (f) the following: "or medical practice facility"; 
(5) by striking out in "(as defined in section 1106(1))" section 
1105(a) and inserting in lieu thereof "or medical practice facility 
^^ use i749aaa-
(as defined in section 1106)"; and 
(6) by redesignating paragraphs (2) through (8) of section 
1106 as paragraphs (3) through (9), respectively, and by insert-
ing after paragraph (1) of such section the following: 
"(2) The term 'medical practice facility' means an adequately 
Definitions. 
equipped facility in which not more than four persons licensed to 
practice medicine in the State where the facility is located can provide, 
as may be appropriate, preventive, diagnostic, and treatment services, 
and which is situated in a rural area or small town, or in a low-income 
section of an urban area, in which there exists, as determined by the 
Secretary, a critical shortage of physicians. As used in this 
paragraph— 
"(A) the term 'small town' means any town, village, or city 
having a population of not more than 10,000 inhabitants accord-
12 use 1749aaa-
5. 
684 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
ing to the most recent available data compiled by the Bureau of 
the Census; and 
"(B) the term 'low-income section of an urban area' means a 
section of a larger urban area in which the median family income 
is substantially lower, as determined by the Secretary, than the 
median family income for the area as a whole." 
i2usci749aaa- 
(b) Sectlou 1106 of such Act is amended as follows: 
(1) Paragraph (1) is amended by inserting "or osteopathy" after 
"practice medicine", and by inserting after "State" where it last 
appears the following: ", or, in the case of podiatric care or treatment, 
is under the professional supervision of persons licensed to practice 
podiatry in the State". 
(2) Paragraph (2) (as redesignated by subsection (a) (6) of this 
section) is amended by inserting ", osteopathy," after "practice medi-
cine", and by inserting after "dentistry in the State," the following: 
"or of persons licensed to practice podiatry in the State,". 
(3) Paragraph (3)(A) (as so redesignated) is amended by insert-
ing "osteopathic care," after "comprehensive medical care,", by striking 
out "or" after "optometric care,", and by inserting after "dental care," 
the following: "or podiatric care,". 
(4) Paragraph (3) (B) (as so redesignated) is amended by insert-
ing "osteopathic,", after "medical,", by striking out "or" after "opto-
metric,", and by inserting after "dental" the following: "or podiatric". 
SUPPLEMENTAL 
LOANS 
i2usci7i5z^. 
gjj^. 3j^3^ Section 241 of the National Housing Act is amended by 
adding at the end thereof the following new subsection: 
"(d) Notwithstanding the foregoing, the Secretary may insure a 
loan for improvements or additions to a multifamily housing project, 
or a group practice or medical practice facility or hospital or other 
health facility approved by the Secretary, which is not covered by a 
mortgage insured under this Act, if he finds that such a loan would 
assist in preserving, expanding, or improving housing opportunities, 
or in providing protection against fire or other hazards. Such loans 
shall have a maturity satisfactory to the Secretary and shall meet such 
other conditions as the Secretary may prescribe. In no event shall such 
a loan be insured if it is for an amount in excess of the maximum 
amount which could be approved if the outstanding indebtedness, if 
nny, covering the property were a mortgage insured under this Act." 
MORTGAGE INSURANCE FOR LAND DEVELOPMENT 
SEC. 314. The first sentence of section 1002(c) of the National Hous-
12use i749bb. ing ^(.^ ig amended to read as follows: "The principal obligation of 
the mortgage shall not exceed the sum of 80 per centum of the Secre-
tary's estimate of the value of the land before development and 90 per 
centum of his estimate of the cost of such development.". 
SALi;S TO 
COOPERATIVES 
SEC. 315. Title II of the National Housing Act (as amended by sec-
tions 307 and 308 of this Act) is amended by adding at the end thereof 
the following: 
^^12 use i7i5z. 
"SEC. 246. In any case in which the Secretary sells a multifamily 
housing project acquired as the result of a default on a mortgage 
which was insured under this Act to a cooperative which will operate 
STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
685 
it on a nonprofit basis and restrict permanent occupancy of its dwell-
ings to members, the Secretary may accept a purchase money mortgage 
in a principal amount equal to the sum of (1) the appraised value of 
the property at the time of purchase, which value shall be based upon 
a mortgage amount on which the debt service can be met from the 
income of the property when operated on a nonprofit basis after pay-
ment of all operating expenses, taxes, and required reserves, and (2) 
the amount of prepaid expenses and costs involved in ^ achieving 
cooperative ownership. Prior to such disposition of a project, funds 
may be expended by the Secretary for necessary repairs and 
improvements." 
EXTENSION OF REGULAR FHA INSURANCE PROGRAMS 
SEC. 316. (a) Section 2(a) of the National Housing Act is amended 
by striking out "October 1,1974" in the first sentence and inserting in 
lieu thereof "June 30,197Y". 
(b) Section 217 of such Act is amended by striking out "October 1, 
1974" and inserting in lieu thereof "June 30, 1977". 
(c) Section 221(f) of such Act is amended by_ striking out "Octo-
ber 1,1974" in the fifth sentence and inserting in lieu thereof "June 30, 
1977". 
(d) Section 809(f) of such Act is amended by striking out "Octo-
ber 1, 1974" in the second sentence and inserting in lieu thereof 
"June 30, 1977". 
(e) Section 810 (k) of such Act is amended by striking out "Octo-
ber 1, 1974" in the second sentence and inserting in lieu thereof 
"June 30, 1977". 
(f) Section 1002(a) of such Act is amended by striking out "Octo-
ber 1, 1974" in the second sentence and inserting in lieu thereof 
"June 30, 1977". 
(g) Section 1101(a) of such Act is amended by striking out "Octo-
ber 1, 1974" in the second sentence and inserting in lieu thereof 
"June 30, 1977". 
12 use 1703. 
12 use 1715h. 
12 use 1715/. 
12 use 1748h-l. 
12 use 1748h-2. 
12 use 1749bb. 
12 use 1749aaa. 
EXTENSION o r FLEXIBLE INTEREST RATE AUTHORITY 
SEC. 317. Section 3(a) of the Act entitled "An Act to amend chapter 
37 of title 38 of the United States Code with respect to the veterans' J^J^^^ ^^°'' 
horne loan program, to amend the National Housing Act with respect ^ ^^^' 
to interest rates on insured mortgages, and for other purposes", 
approved May 7, 1968, as amended (12 U.S.C. 1709-1), is amended by 
striking out "October 1, 1974" and inserting in lieu thereof "June 30, 
1977". 
MORTGAGE INSURANCE IN MILITARY IMPACTED AREAS 
SEC. 318. Section 238 of the National Housing Act is amended by 
^
^ use i7i5z-3. 
adding at the end thereof the following new subsection : 
"(c) The Special Kisk Insurance Fund may be used by the Secre-
tary for carrying out the mortgage insurance obligations of sections 
203 and 207 to provide housing for military personnel, Federal civil-
ian employees, and Federal contractor employees assigned to duty or 
employed at or in connection with any installation of the Armed 
Forces of the United States in federally impacted areas where, in the 
judgment of the Secretary (1) the residual housing requirements for 
persons not associated with such installations are insufficient to sus-
tain the housing market in the event of substantial curtailment of 
employment of personnel assigned to such installations, and (2) the 
benefits to be derived from such use outweigh the risk of possible cost 
to the Government." 
686 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
AMENDMENT TO MAKE PUBLIC HOUSING AGENCIES ELIGIBLE AS MORT-
GAGORS UNDER SECTION 2 2 1 ( d ) ( 3 ) OF T H E NATIONAL HOUSING ACT 
SEC. 319. (a) Section 221(d)(3) of the National Housing Act is 
amended by striking out "(and which certifies that it is not receiving 
financial assistance from the United States exclusively pursuant to the 
United States Housing Act of 1937)" and inserting m lieu thereof 
"(and, except with respect to a project assisted or to be assisted pur-
suant to section 8 of the United States Housing Act of 1937, which 
certifies that it is not receiving financial assistance from the United 
States exclusively pursuant to such Act)". 
(b) With respect to any obligation secured by a mortgage which is 
insured under section 221(d)(3) of the National Housing Act and 
issued by a public agency as mortgagor in connection with the financ-
ing of a project assisted under section 8 of the United States Housing 
Act of 1937, the interest paid on such obligation shall be included in 
gross income for purposes of chapter 1 of the Internal Revenue Code 
of 1954. 
TITLE IV—COMPREHENSIVE PLANNING 
COMPREHENSIVE PLANNING 
12 u s e 
42 u s e 
42 u s e 
12 u s e 
note. 
42 u s e 
26 u s e 
1715^ 
1430. 
1408. 
1715^ 
1408. 
1 et 
40 u s e 461. 
Ante, p. 633. 
42 u s e 3334. 
SEC. 401. (a) Section 701(a) of the Housing Act of 1954 is 
amended— 
(1) by striking out "State planning agencies" in paragraph 
(1) and inserting in lieu thereof "States"; 
(2) by striking out the numbered paragraphs following para-
graph (1) and inserting in lieu thereof the following: 
"(2) States for State, interstate, metropolitan, district, or 
regional activities which may be assisted under this section; 
"(3) cities (including the District of Columbia) having popu-
lations of at least 50,000 according to the latest decennial census 
for local activities which may be assisted under this section; 
"(4) urban counties as defined under title I of the Housing and 
Community Development Act of 1974; 
"(5) the areawide organization in any metropolitan area which 
is formally charged with carrying out the provisions of section 
204 of the Demonstration Cities and Metropolitan Development 
Act of 1966 and section 401 of the Intergovernmental Coopera-
42 use 4231. 
^^Qj^ ^p^ Q£ -
j
^
Q
g
g . pY-oqyfded, That any such areawide organization, 
to the extent practicable, shall be composed of or responsible to 
the elected officials of the unit or units of general local govern-
ment for the jurisdictions of which they are empowered to carry 
out the provisions of such Acts; 
" (6) Indian tribal groups or bodies; and 
"(7) other governmental units or agencies having special 
planning needs related to the purposes of this section, including 
but not limited to interstate regional planning commissions, and 
units or agencies for disaster areas, federally impacted areas, 
and local development districts, to the extent these needs cannot 
otherwise be adequately met."; and 
(3) by striking out the part which follows the numbered para-
graphs and inserting in lieu thereof the following: 
"Activities assisted under this section shall, to the maximum extent 
feasible, cover entire areas having common or related development 
problems. The Secretary shall encourage cooperation in preparing and 
carrying out plans among all interested municipalities, political sub-
divisions, public agencies, and other parties in order to achieve coordi-
nated development of entire areas. To the maximum extent feasible, 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
687 
pertinent plans and studies already made for areas shall be utilized so 
as to avoid unnecessary repetition of effort and expense." 
(b) Section 701 of such Act is further amended by striking out all 
"
^
^ use 46i. 
that follows subsection (a) and inserting in lieu thereof the following: 
"(b) Activities which may be assisted imder this section include 
those necessary (1) to develop and carry out a comprehensive plan as 
part of an ongoing planning process, (2) to develop and improve the 
management capability to implement such plan or part thereof or 
related plans or planning, and (3) to develop a policy-planning-eval-
uation capacity so that the recipient may more rationally (A) deter-
mine its needs, (B) set long-term goals and short-term objectives, (C) 
devise programs and activities to meet these goals and objectives, and 
(D) evaluate the progress of such programs in accomplishing those 
goals and objectives. Activities assisted under this section shall be car-
ried out by professionally competent persons. 
"(c) Each recipient of assistance under this section shall carry out 
an ongoing comprehensive planning process which shall make provi-
sion for citizen participation pursuant to regulations of the Secretary 
where major plans, policies, priorities, or objectives are being deter-
mined. The process shall involve development and subsequent modi-
fications of a comprehensive plan which shall be reviewed at least 
biennially for necessary or desirable amendments. Any such plan shall 
include, as a minimum, each of the following elements: 
" (1) A housing element which shall take into account all avail-
able evidence of the assumptions and statistical bases upon which 
the projection of zoning, community facilities, and population 
growth is based, so that the housing needs of both the region and 
the local communities studied in the planning will be adequately 
covered in terms of existing and prospective population growth. 
The development and formulation of State and local goals pursu-
ant to title XVI of the Housing and Urban Development Act of 
1968 shall be a part of such a housing element. 
'^s use i44ia. 
"(2) A land-use element which shall include (A) studies, cri-
teria, standards, and implementing procedures necessary for 
effectively guiding and controlling major decisions as to where 
growth shall take place within the recipient's boundaries, and (B) 
as a guide for governmental policies and activities, general plans 
with respect to the pattern and intensity of land use for residen-
tial, commercial, industrial, and other activities. 
Each of the elements set forth above shall specify (i) broad goals and 
annual objectives (in measurable terms wherever possible), (ii) pro-
grams designed to accomplish these objectives, and (iii) procedures, 
including criteria set forth in advance, for evaluating programs and 
activities to determine whether they are meeting objectives. Such ele-
ments shall be consistent with each other and consistent with stated 
national growth policy. 
"(d) After an initial application for assistance under this section 
has been approved, the Secretary may make grants on an annual basis, 
if— 
"(1) the applicant submits to the Secretary annually a descrip-
tion of its work program designed to meet objectives for the next 
succeeding one-year period and setting forth any changes the 
applicant intends to undertake to achieve better progress; and 
"(2) the applicant submits to the Secretary biennally (A) an 
evaluation of the progress made by it during the previous two 
years in meeting objectives set forth in its plan, and (B) a 
description of any changes in the plan's goals or objectives. 
688 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
The Secretary shall make no grant after three years from the date 
of enactment of the Housing and Community Development Act of 
1974, to any applicant (other than an applicant described in para-
graph (6) or (7) of subsection (a)), unless the Secretary is satisfied 
that the comprehensive planning being carried out by the applicant 
includes the elements specified in paragraphs (1) and (2) of subsec-
tion (c). 
limitauon"^* 
"(e) A grant made under this section shall not exceed two-thirds 
Appropriation. 
of the estimated cost of the work for which the grant is made. There 
are authorized to be appropriated for the purposes of this section not 
to exceed $130,000,000 for the fiscal year 1975, and not to exceed 
$150,000,000 for the fiscal year 1976. Of the funds appropriated under 
this section, not to exceed an aggregate of $10,000,000 plus 5 per 
centum of the funds so appropriated may be used by the Secretary for 
studies, research, and demonstration projects, undertaken independ-
ently or by contract, for the development and improvement of tech-
niques and methods for comprehensive planning and for the 
advancement of the purposes of this section, and for grants to assist 
in the conduct of studies and research relating to needed revisions in 
State statutes which create, govern, or control local governments and 
local governmental operations. 
"(f) It is the further intent of this section to encourage compre-
hensive planning on a unified basis for States, cities, counties, metro-
politan areas, districts, regions, and Indian reservations and the 
establishment and development of the organizational units needed 
therefor. In extending financial assistance under this section, the Sec-
retary may require such assurances as he deems adequate that the 
appropriate State and local agencies are making reasonable progress in 
the development of the elements of comprehensive planning. The Sec-
retary is authorized by contract, grant, or otherwise to provide tech-
nical assistance to State and local governments, and interstate and 
regional combinations thereof, to Indian tribal bodies, and to govern-
mental units or agencies described in subsection (a) (7), undertaking 
such planning and, by contract or otherwise, to make studies and 
publish information on comprehensive planning and related manage-
ment problems. 
"(g) The consent of the Congress is hereby given to any two or more 
States to enter into agreements or compacts, not in conflict with any 
law of the United States, cooperative effort and mutual assistance in 
the comprehensive plaiming for the growth and development of inter-
state, metropolitan, or other urban areas, and to establish such agencies, 
joint or otherwise, as they may deem desirable for making effective 
such agreements and compacts. 
"(h) In addition to the planning grants authorized by subsection 
(a), the Secretary is further authorized to make grants to organiza-
tions composed of public officials representative of the political juris-
dictions within the metropolitan area, region, or district involved for 
the purpose of assisting such organizations to undertake studies, collect 
data, develop metropolitan, regional, and district plans and programs, 
and engage in such other activities, including implementation of such 
plans, as the Secretary finds necessary or desirable for the solution 
of the metropolitan, regional, or district problems in such areas, 
regions, or districts. To the maximum extent feasible, all grants under 
this subsection shall be for activities relating to all the developmental 
aspects of the total metropolitan area, region, or district including, 
but not limited to, land use, transportation, housing, economic devel-
opment, natural resources development, community facilities, and the 
genei-al improvement of living environments. 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
689 
"(i) In addition to the other grants authorized by this section, the 
Secretary is authorized to make grants to assist any city, other munici-
pality, or county in making a survey of the structures and sites in 
the locality which are determined by its appropriate authorities to 
be of historic or architectural value. Any such survey shall be 
designed to identify the historic structures and sites in the locality, 
determine the cost of their rehabilitation or restoration, and provide 
such other information as may be necessary or appropriate to serve 
as a foundation for a balanced and effective program of historic pres-
ervation in such locality. The aspects of any such survey which relate 
to the identijfication of historic and architectural values shall be con-
ducted in accordance with criteria found by the Secretary to be com-
parable to those used in establishing the national register maintained 
by the Secretary of the Interior under other provisions of law; and 
the results of each such survey shall be made available to the Secre-
tary of the Interior. A grant under this subsection shall be made to 
the appropriate agency or entity specified in paragraphs (1) through 
(6) of subsectiou (a) or, if there is no such agency or entity which is 
qualified and willing to receive the grant and provide for its utiliza-
tion in accordance with this subsection, directly to the city, other 
municipality, or county involved. 
"(j) Grants made under this section may be used, subject to regu-
lations and conditions prescribed by the Secretary, for any activities 
made eligible by the provisions of this section; but such regulations 
shall provide that grant assistance shall not be used to defray the 
cost of the acquisition, construction, repair, or rehabilitation of, or the 
preparation of engineering drawings or similar detailed specifications 
for, specific housing, capital facilities, or public works projects. 
"(k) The Secretary shall consult with the heads of other Federal 
departments and agencies having responsibilities related to the pur-
poses of this section, including responsibilities connected with the 
economic development of rural and depressed areas and the pro-
tection and enhancement of the Nation's natural environment, with 
respect to (1) general standards, policies, and procedures to be fol-
lowed in the administration of this section, and (2) particular grant 
actions or approvals which the Secretary believes to be of special inter-
est or concern to one or more of such departments and agencies. 
"(1) Funds made available under any Federal assistance program 
for projects or activities, approved as part of or in furtherance of a 
planning program or related management activities assisted under this 
section, may be used jointly with funds made available for such proj-
ects or activities under any other Federal assistance program, subject 
to regulations prescribed by the President. Such regulations may 
include provisions for common technical or administrative require-
ments where varying or conflicting provisions of law or regulations 
would otherwise apply, for establishing joint management funds and 
common non-Federal shares, and for special agr-eements or delegations 
of authority, among different Federal agencies in connection with the 
supervision or administration of assistance. Such regulations shall in 
any case include appropriate criteria and procedures to assure that any 
special authorities conferred, which are not otherwise provided for by 
law, shall be employed only as necessary to promote effective and effi-
cient administi'ation and in a manner consistent with the protection of 
the Federal interest and program purposes or statutory requirements 
of a substantive nature. For purposes of this subsection, the term 'Fed-
eral assistance program' has the same meaning as in the Intergovern- gram 
mental Cooperation Act of 1968. 
" 
42 use 420i 
'Federal as-
sistance pro-
note. 
690 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
Definitions. 
" (m) As used in this section— 
"(1) The term 'metropolitan area' means a standard metro-
politan statistical area, as established by the Office of Management 
and Budget, subject, however, to such modifications or extensions 
as the Secretary deems to be appropriate for the purposes of this 
section. 
"(2) The term 'region' includes (A) all or part of the area of 
jurisdiction of one or more units of general local government, 
and (B) one or more metropolitan areas. 
" (3) The term 'district' includes all or part of the area of juris-
diction of (A) one or more counties, and (B) one or more other 
units of general local government, but does not include any por-
tion of a metropolitan area. 
" (4) The term 'comprehensive planning' includes the following: 
" (A) preparation, as a guide for governmental policies and 
action, of general plans with respect to (i) the pattern and 
intensity of land use, (ii) the provision of public facilities 
(including transportation facilities) and other government 
services, and (iii) the effective development and utilization 
of human and natural resources; 
"(B) identification and evaluation of area needs (including 
housing, employment, education, and health) and formula-
tion of specific programs for meeting the needs so identified; 
"(C) surveys of structures and sites which are determined 
by the appropriate authorities to be of historic or architec-
tural value; 
"(D) long-range physical and fiscal plans for such action; 
"(E) programing of capital improvements and other major 
expenditures, based on a determination of relative urgency, 
together with definite financing plans for such expenditures 
in the earlier years of the program; 
"(F) coordination of all related plans and activities of the 
State and local governments and agencies concerned; and 
"(G) preparation of regulatory and administrative meas-
ures in support of the foregoing. 
Comprehensive planning for the purpose of districts shall not 
include planning for or assistance to establishments in relocating 
from one area to another or assist contractors or subcontractors 
whose purpose is to divest, or whose economic success is dependent 
upon divesting, other contractors or subcontractors of contracts 
theretofore customarily performed by them. The limitation set 
forth in the preceding sentence shall not be construed to prohibit 
assistance for the expansion of an existing business entity through 
the establishment of a new branch, affiliate, or subsidiary of such 
entity, if the Secretary finds that the establishment of such branch, 
affiliate, or subsidiary will not result in an increase in unemploy-
ment in the area of original location or in any other area where 
such entity conducts business operations, unless the Secretary has 
reason to believe that such branch, affiliate, or subsidiary is being 
established with the intention of closing down the operations of 
the existing business entity in the area of its original location or 
in any other area where it conducts such operations, 
"(n) In carrying out the provisions of this section relating to plan-
ning for States, regions, or other multijurisdictional areas whose 
development has significance for purposes of national growth and 
urban development objectives, the Secretary shall encourage the formu-
lation of plans and programs which will include the studies, criteria, 
standards, and implementing procedures necessary for effectively 
guiding and controlling major decisions as to where growth should 
88 STAT.] 
PUBLIC LAW 93-383-AUG. 22, 1974 
691 
take place within such States, regions, or areas. Such plans and pro-
grams shall take account of the availability of and need for conserving 
land and other irreplaceable natural resources; of projected changes 
in size, movement, and composition of population; of the necessity for 
expanding housing and employment opportunities; of the opportuni-
ties, requirements, and possible locations for new communities and 
large-scale projects for expanding or revitalizing existing communi-
ties; and of the need for methods of achieving modernization, simpli-
fication, and improvements in governmental structures, systems, and 
procedures related to growth objectives. If the Secretary determines 
that activities otherwise eligible for assistance under this section are 
necessary to the development or implementation of such plans and 
programs, he may make grants in support of such activities to any 
governmental agency or organization of public officials which he 
determines is capable of carrying out the planning work involved in an 
effective and efficient manner and may make such grants in an amount 
equal to not more than 80 per centum of the cost of such activities." 
(c) Section 703 of such Act is amended by striking out "and" in 
'^° "^*^ '*^°-
clause (1), and by inserting ", and the Trust Territory of the Pacific 
Islands" immediately before the semicolon at the end of such clause. 
I'RAIXIXG AND FELLOWSHIP rROGRAMS 
SEC. -lO'i. (a) Section 801(b) of the Housing and Urban Develop-
ment Act of 1%4 is amended to read as follows: 
20 use soi. 
"(b) It is the purpose of this title to provide fellowships for the 
graduate training of professional city and regional planning, man-
agement, and housing specialists, and professionally trained per-
sonnel with a general capacity in urban affairs and problems: to make 
grants to and contracts with institutions of higher education (or com-
binations of such institutions) to assist them in planning, developing, 
strengthening, improving, or carrying out programs or projects for 
the preparation of graduate or professional students to enter the pub-
lic service; and to assist and encourage the States and localities, in 
cooperation with public and private universities and colleges and 
urban centers and with business firms and associations, labor unions, 
and other interested associations and organizations, to (1) organize, 
initiate, develop, and expand programs which will provide special 
training in skills needed for economic and efficient community develop-
ment to those technical, professional, and other persons with the 
capacity to master and employ such skills who are, or are training to 
be, employed by a governmental or public body which has responsibil-
ity for community development, or by a private nonprofit organization 
which is conducting or has responsibility for housing and community 
development progranis, and (2) support State and local research that 
is needed in connection with housing programs and needs, public 
improvement programing, code problems, efficient land use, urban 
transportation, and similar community development problems." 
(b) Section 802(a) of such Act is amended to read as follows: 
20 use 802. 
"(a) The Secretary is authorized to provide fellowships for the 
graduate training of professional city planning, management, and 
housing specialists, and other persons who wish to develop a general 
capacity in urban affairs and problems as herein provided. Persons 
shall be selected for such fellowships solely on the basis of ability and 
upon the recommendation of the Urban Studies Fellowship Advisory 
Board established pursuant to subsection (b). Fellowships shall be 
solely for training in public and private nonprofit institutions of 
higher education having programs of graduate study in the field of 
city planning or in related fields (including architecture, civil engi-
692 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
neering, economics, municipal finance, public administration, urban 
affairs, and sociology) which programs are oriented to training for 
careers in city and regional planning, housing, urban renewal, and 
community development." 
20 use 801. 
(c) Title VIII of such Act is further amended (1) by redesignating 
2 0 use 804. 
sections 804 through 807 as sections 805 through 808, respectively, and 
(2) by inserting after section 803 a new section as follows: 
20 u s e 803a. 
20 u s e 806. 
42 u s e 1471. 
PROJECT GRANTS AND CONTRACTS 
"SEC. 804. (a) The Secretary is authorized to make grants to or 
contracts with institutions of nigher education, or combinations of 
such institutions, to assist them in planning, developing, strengthen-
ing, improving, or carrying out programs or projects (1) for the 
preparation of graduate or professional students in the fields of city 
and regional planning and management, housing, and urban affairs, 
or (2) for research into, or development or demonstration of, 
improved methods of education for these professions. Such grants or 
contracts may include payment of all or part of the cost of programs 
or projects. 
" (b) (1) A grant or contract authorized by this section shall be made 
only upon application to the Secretary at such time or times and con-
taining such information as he may prescribe, except that no such 
application shall be approved unless it— 
"(A) sets forth programs, activities, research, or development 
for which a grant is authorized under this section; 
"(B) provides for such fiscal control and fund accounting pro-
cedures as may be necessary to assure proper disbursement of and 
accounting for Federal funds paid to the applicant under this sub-
section; and 
"(C) provides for making such reports, in such form and con-
taining such information, as the Secretary may require to carry 
out his functions under this subsection, and for keeping such 
records and for affording such access thereto as the Secretary may 
find necessary to assure the correctness and verification of such 
reports. 
"(2) Payments under this section may be used, in accordance with 
regulations of the Secretary, and subject to the terms and conditions 
set forth in an application approved under paragraph (1), to pay part 
of the compensation of students employed in professions referred to 
in subsection (a) (1), except students employed in any branch of the 
Government of the United States, as part of a program for which a 
grant has been approved pursuant to this subsection." 
(d) Section 807 of such Act (as redesignated by subsection (c) of 
this section) is amended by inserting before the period at the end of 
the first sentence a comma and the following: "which amount shall be 
increased by $3,500,000 on July 1, 1974, and by $3,500,000 on July 1, 
1975". 
TITLE V—RUKAL HOUSING 
INCLUSION OF UNITED STATES TERRITORIES AND TRUST TERRITORY OF T H E 
PACIFIC ISLANDS 
SEC. 501. Section 501(a) (1) of the Housing Act of 1949 is amended 
by striking out "Puerto Rico and the Virgin Islands" and inserting in 
lieu thereof the following: "the Commonwealth of Puerto Rico, the 
Virgin Islands, the territories and possessions of the United States, 
and the Trust Territory of the Pacific Islands". 
88 STAT. ] 
PUBLIC LAW 93-383--AUG. 22, 1974 
693 
REFINANCING OF INDEBTEDNESS FOR CERTAIN ELIGIBLE APPLICANTS 
SEC. 502. Section 501 (a) (4) of the Housing Act of 1949 is amended— 
^2 use 147i. 
(1) by adding after the comma at the end of clause (B) the 
following: "or, if combined with a loan for improvement, rehabil-
itation, or repairs and not refinanced, is likely to cause a hardship 
for the applicant, and"; and 
(2) striking out clauses (C) and (D) and inserting in lieu 
thereof the following: 
"(C) was incurred by the applicant at least five years prior to 
his applying for assistance under this title.". 
LOANS TO LEASEHOLD OWNERS UNDER ALL RURAL HOUSING PROGRAMS 
SEC. 503. Section 501 (b) (2) of the Housing Act of 1949 is amended 
by striking out "sections 502 and 504" and inserting in lieu thereof 
"this title". 
REHABILITATION LOANS AND GRANTS 
SEC. 504. Section 504(a) of the Housing Act of 1949 is amended to 
^^ ^^^ i^^^-
read as follows: 
"(a) In the event the Secretary determines that an eligible appli-
cant cannot qualify for a loan under the provisions of sections 502 and 
503 and that repairs or improvements should be made to a rural dwell-
ing occupied by him in order to make such dwelling safe and sanitary 
and remove hazards to the health of the occupant, his family, or the 
community, and that repairs should be made to farm buildings in 
order to remove hazards and make such buildings safe, the Secretary 
may make a grant or a combined loan and grant to the applicant to 
cover the cost of improvements or additions, such as repairing roofs, 
providing toilet facilities, providing a convenient and sanitary water 
supply, supplying screens, repairing or providing structural supports, 
or making similar repairs, additions, or improvements, including all 
preliminary and installation costs in obtaining central water and 
sewer service. No assistance shall be extended to any one individual 
under this subsection in the form of a loan, grant, or combined loan 
and grant in excess of $5,000. Any portion of the sums advanced to 
the borrower treated as a loan shall be secured and be repayable within 
tw^enty years in accordance with the principles and conditions set 
forth in this title, except that a loan for less than $2,500 need be 
evidenced only by a promissory note. Sums made available by grant 
may be made subject to the conditions set forth in this title for the 
protection of the Government Avith respect to contributions made on 
loans made by the Secretary.". 
E S C R O W A C C O U N T S F O R T A X E S , I N S U R A N C E , A N D OTHER EXPENSES 
SEC. 505. (a) Section 501 of the Housing Act of 1949 is amended by 
42 use 1471. 
adding at the end thereof the following new subsection: 
"(e) The Secretary may establish procedures whereby borrowers 
under this title may make periodic payments for the purpose of taxes, 
insurance, and such other necessary expenses as the Secretary may 
deem appropriate. Such payments shall be held in escrow by the Sec-
retary and paid out by him at the appropriate time or times for the 
purposes for which such payments are made. The Secretary shall 
notify a borrower in writing when his loan payments are delinquent.". 
(b) The second sentence of section 502(a) of such Act is amended 
"
^
^ use 1472. 
by inserting before the period at the end thereof the following: "and 
on the borrower prepaying to the Secretary as escrow agent, on terms 
and conditions prescribed by him, such taxes, insurance, and other 
38-194 O - 76 - 47 Pt. 1 
42 u s e 1487. 
694 
PUBLIC LA\V 93-383-AUG. 22, 1974 
[88 STAT. 
expenses as the Secretary may require in accordance with section 
501(e)". 
(c) Section 517 of such Act is amended— 
(1) by striking out "as it becomes due" in the first sentence of 
subsection (d); 
(2) by striking out "prepayment" and "prepayments" each 
place they appear in subsection (j)(l) and inserting in lieu 
thereof "payment" and "payments", respectively; and 
(3) by inserting before the semicolon at the end of subsection 
(j) (1) the following: "or until the next agreed annual or semi-
annual remittance date". 
RESEARCH AND STUDY 
PROGRAMS 
42 use 1476. 
gEC. 506. (a) Section 506 (d) of the Housing Act of 1949 is amended 
to read as follows: 
"(d) The Secretary may carry out the research and study programs 
authorized by subsections (b) and (c) through grants made by him, 
on such terms, conditions, and standards as he may prescribe, to land-
grant colleges established pursuant to the Act of July 2,1862 (7 U.S.C. 
301-308), or (upon a finding by the Secretary that the research and 
study involved cannot feasibly be performed through the personnel 
and facilities of the Department of Agriculture or by land-grant col-
leges) to such other private or public organizations as he may select.", 
(b) Section 506(e) of such Act is amended by striking out "farm 
housing" each place it appears and inserting in lieu thereof "rural 
housing". 
VETERANS 
PREFERENCE 
42 use 1477. 
g^^_ gQ^^ Section 507 of the Housing Act of 1949 is amended— 
(1) by inserting after "concurrent resolution of Congress" each 
place it appears a comma and the following: "or during the period 
beginning after January 31, 1955, and ending on August 4, 1964, 
or during the Vietnam era (as defined in section 101(29) of title 
38, United States Code),"; and 
(2) by inserting "or era" before the period at the end of the 
third sentence. 
UTILIZATION 
OF COUNTY 
COMMITTEES 
42 use 1478. 
^^^ 5Q8_ Section 508(b) of the Housing Act of 1949 is amended to 
read as follows: 
"(b) The committees utilized or appointed pursuant to this section 
may examine applications of persons desiring to obtain the benefits of 
section 501 (a) (1) and (2) as they relate to the successful operation of 
a farm, and may submit recommendations to the Secretary with respect 
to each applicant as to whether the applicant is eligible to receive such 
benefits, whether by reason of his character, ability, and experience he 
is likely successfully to carry out undertakings required of him under 
a loan under such section, and whether the farm with respect to which 
the application is made is of such character that there is a reasonable 
likelihood that the making of the loan requested will carry out the 
purposes of this title. The committees may also certify to the Secretary 
with respect to the amount of any loan." 
ASSISTANCE 
AUTHORIZATION 
SEC. 509. (a) Clauses (b), (c), and (d) of section 513 of the Housing 
42 use 1483. 
j^p^ ^f ]^949 ^j.g amended to read as follows: "(b) not to exceed 
42 use 1474. 
$80,000,000 for loans and grants pursuant to section 504 during the 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
695 
period beginning July 1, 1956, and ending June 30, 1977; (c) not to 
exceed $80,000,000 for financial assistance pursuant to section 516 for 
'^^ ^^^ ^'**^* 
the period ending June 30, 1977; (d) not to exceed $250,000 per year 
for research and study programs pursuant to subsections (b), (c), and 
(d) of section 506 during the period beginning July 1,1961, and end- 
^"^^' p- ^94. 
ing June 30, 1974, and not to exceed $1,000,000 per year for such pro-
grams during the period beginning October 1, 1974, and ending 
June 30, 1977;". 
(b) Sections 515(b) (5) and 517(a) (1) of such Act are amended by ^^f^ use i485. 
striking out "October 1, 1974" and inserting in lieu thereof "June 30, 
1977". 
DIRECT AND INSURED LOANS TO PROVIDE HOUSING AND RELATED FACILITIES 
FOR ELDERLY PERSONS AND LOWER INCOME FAMILIES I N RURAL AREAS 
SEC. 510. (a) Section 515(b)(1) of the Housing Act of 1949 is 
42 use i485. 
amended— 
(1) by striking out "$750,000 or"; and 
(2) by striking out "least" and inserting in lieu thereof "less", 
(b) Section 515(d) (4) of such Act is amended to read as follows: 
"(4) the term 'development cost' means the costs of construe- 
"Development 
ing, purchasing, improving, altering, or repairing new or existing 
housing and related facilities and purchasing and improving the 
necessary land, including necessary and appropriate fees and 
charges, and initial operating expenses up to 2 per centum of the 
aforementioned costs, approved by the Secretary. Such fees and 
charges may include payments of qualified consulting organiza-
tions or foundations which operate on a nonprofit basis and which 
render services or assistance to nonprofit corporations or consumer 
cooperatives who provide housing and related facilities for low or 
moderate income families." 
DEFINITION OF RURAL AREA 
SEC. 511. Section 520 of the Housing Act of 1949 is amended by 
42 use i49o. 
inserting before the period at the end thereof a comma and the follow-
ing: "or (3) has a population in excess of 10,000 but not in excess of 
20,000, and (A) is not contained within a standard metropolitan statis-
tical area, and (B) has a, serious lack of mortgage credit, as determined 
by the Secretary and the Secretary of Housing and 
Urban 
Development". 
MUTUAL AND SELF-HELP 
HOUSING 
SEC. 512. (a) Section 623(b)(1) of the Housing Act of 1949 is 
amended by inserting immediately before "; and" at the end thereof 
the following: ": Provided, That the Secretary may advance funds 
under this paragraph to organizations receiving assistance under 
clause (A) to enable them to establish revolving accounts for the pur-
chase of land options and any such advances may bear interest at a 
rate determined by the Secretary and shall be repaid to the Secretary 
at the expiration of the period for which the grant to the organization 
involved was made". 
(b) Section 523(f) of such Act is amended— 
(1) by striking out "1974" each place it appears and inserting 
in lieu thereof "1977"; and 
(2) by striking out "$5,000,000" and inserting in lieu thereof 
"$10,000,000". 
(c) Section 523 of such Act is amended by adding at the end thereof 
the following new subsection: 
42 u s e 1490c. 
696 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
Rules and 
regulations. 
1485, 1487. 
"(h) The Secretary shall issue rules and regulations for the 
orderly processing and review of applications under this section and 
rules and regulations protecting the rights of grantees under this sec-
tion in the event he determines to end grant assistance prior to the ter-
mination date of any grant agreement.". 
SITE 
LOANS 
SEC. 513. The first sentence of section 524(a) of the Housing Act of 
42 use i490d. 2949 is amended to read as follows: "The Secretary may make loans, 
on such terms and conditions and in such amounts he deems necessary, 
to public or private nonprofit organizations for the acquisition and 
development of land as building sites to be subdivided and sold to fam-
ilies, nonprofit organizations, public agencies, and cooperatives eligible 
for assistance under any section of this title or under any other law 
which provides financial assistance for housing low- and moderate-
income families." 
RENTAL 
ASSISTANCE 
42 use 1490a. 
QEC. 514. (a) Section 521 (a) of the Housing Act of 1949 is amended 
by inserting "(1)" after "(a)", and by adding at the end thereof the 
following new paragraph: 
"(2) (A) The Secretary may make and insure loans under this sec-
^'*2^usc^i484, 
tion and sections 514, 515, and 517 to provide rental or cooperative 
housing and related facilities for persons and families of low income 
in multifamily housing projects, and may make, and contract to make, 
assistance payments to the owners of such rental housing in order to 
make available to low-income occupants of such housing rentals at 
rates commensurate to income and not exceeding 25 per centum of 
income. Such assistance payments shall be made on a unit basis and 
shall not be made for more than 20 per centum of the units in any one 
project, except that (i) when the project is financed by a loan under 
section 515 for elderly housing or by a loan under section 514 and a 
grant under section 516, such assistance may be made for up to 100 
per centum of the units, and (ii) when the Secretary determines such 
action is necessary or feasible, he may make such payments with 
respect to more than 20 per centum of the units. 
"(B) The owner of any project assisted under this paragraph shall 
be required to provide at least annually a budget of operating expenses 
and record of tenants' income which shall be used to determine the 
amount of assistance for each project. 
"(C) The project owner shall accumulate, safeguard, and periodi-
cally pay to the Secretary any rental charges collected in excess of basic 
rental charges as established by the Secretary in conformity with sub-
paragraph (A). These funds may be credited to the appropriation 
and used by the Secretary for making such assistance payments 
through the end of the next fiscal year." 
(b) Section 521(c) of such Act is amended to read as follows: 
"(c) There shall be reimbursed to the Rural Housing Insurance 
Fund by annual appropriations (1) the amounts by which nonprinci-
pal payments made from the fund during each fiscal year to the holders 
of insured loans described in subsection (a) (1) exceed interest due 
from the borrowers during each year, and (2) the amount of assistance 
payments described in subsection (a)(2). The Secretary may from 
time to time issue notes to the Secretary of the Treasury under section 
517(h) to obtain amounts equal to such unreimbursed payments, pend-
ing the annual reimbursement by appropriation." 
(c) Section 517 (j) of such Act is amended— 
(1) by striking out "and" at the end of paragraph (2); 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
(2) by striking out the period at the end of paragraph (3) and 
inserting in lieu thereof "; and"; and 
(3) by adding at the end thereof the following new paragraph: 
"(4) to make assistance payments authorized by section 521 
(a)(2)." 
TECHNICAL AND SUPERVISORY ASSISTANCE 
SEC. 515. Title V of the Housing Act of 1949 is amended by adding 
at the end thereof the following new section : 
" P R O G R A M S O F TECHNICAL AND SUPERVISORY ASSISTANCE FOR 
LOW-INCOME 
FAMILIES 
ep7 
Ante, 
p. 696. 
42 u s e 1490e. 
"SEC. 525. (a) The Secretary may make grants to or enter into con-
tracts with public or private nonprofit corporations, agencies, institu-
tions, organizations, and other associations approved by him, to pay 
part or all of the cost of developing, conducting, administering or 
coordinating effective and comprehensive programs of technical and 
supervisory assistance which will aid needy low-income individuals 
and families in benefiting from Federal, State, and local housing pro-
grams in rural areas. In processing applications for such grants or 
contracts made by private nonprofit corporations, agencies, institu-
tions, organizations, and other associations, the Secretary shall give 
preference to those which are sponsored (including assistance to the 
applicant in processing the application, implementing the technical 
assistance program, and carrying out the obligations of the grant or 
contract) by a State, county, municipality, or other governmental 
entity or public body. 
"(b) The Secretary is authorized to make loans to public or private 
nonprofit corporations, agencies, institutions, organizations, and other 
associations approved by him for the necessary expenses, prior to con-
struction, of planning, and obtaining financing for, the rehabilitation 
or construction of housing for low-income individuals or families under 
any Federal, State, or local housing program which is or could be 
used in rural areas. Such loans shall be made without interest and 
shall be for the reasonable costs expected to be incurred in planning, 
and in obtaining financing for, such housing prior to the availability 
of financing, including but not limited to preliminary surveys and 
analyses of market needs, preliminary site engineering and archi-
tectural fees, and construction loan fees and discounts. The Secretary 
shall require repayment of loans made under this subsection, under 
such terms and conditions as he may require, upon completion of the 
housing or sooner, and may cancel any part or all of such loan if he 
determines that it cannot be recovered from the proceeds of any perma-
nent loan made to finance the rehabilitation or construction of the 
housing. 
"(c) There are authorized to be appropriated for the fiscal years 
Appropriation. 
ending June 30, 1975, and June 30, 1976, not to exceed $5,000,000 for 
the purposes of subsection (a) and not to exceed $5,000,000 for the pur-
poses of subsection (b). Any amounts so appropriated shall remain 
available until expended, and any amounts authorized for any fiscal 
year under this subsection but not appropriated may be appropriated 
for any succeeding fiscal year. 
"(d) All funds appropriated for the purpose of subsection (b) shall 
Low-income 
be deposited in a fund which shall be known as the low-income sponsor ^''°"^°'" 
fund, and which shall be available without fiscal year limitation and 
be administered by the Secretary as a revolving fund for carrying 
out the purposes of that subsection. Sums received in repayment of 
loans made under subsection (b) shall be deposited in such fund.". 
698 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
CONDOMINIUM 
HOUSING 
Ante, 
p. 697. 
42 u s e 1490f. 
SEC. 516. (a) Title V of the Housing Act of 1949 (as amended by 
section 515 of this Act) is amended by adding at the end thereof the 
following new section: 
CONDOMINIUM 
HOUSING 
"SEC. 526. (a) The Secretary is authorized, in his discretion and 
upon such terms and conditions (substantially identical insofar as may 
Ante, p. 693. 
\)Q feasible with those specified in section 502) as he may prescribe, 
to make loans to persons and families of low or moderate income, and 
to insure and make commitments to insure loans made to persons and 
families of low or moderate income, to assist them in purchasing dwell-
ing units in condominiums located in rural areas. 
"(b) Any loan made or insured under subsection (a) shall cover a 
one-family dwelling unit in a condominium, and shall be subject to 
such provisions as the Secretary determines to be necessary for the 
maintenance of the common areas and facilities of the condominium 
project and to such additional requirements as the the Secretary deems 
appropriate for the protection of the consumer. 
"(c) In addition to individual loans made or insured under sub-
section (a) the Secretary is authorized, in his discretion and upon 
such terms and conditions (substantially identical insofar as may be 
feasible with those specified in section 515) as he may prescribe, to 
make or insure blanket loans to a borrower who shall certify to the 
Secretary, as a condition of obtaining such loan or insurance, that 
upon completion of the multifamily project the ownership of the 
project will be committed to a plan of family unit ownership under 
which (1) each family unit will be eligible for a loan or insurance 
under subsection (a), and (2) the individual dwelling units in the 
project will be sold only on a condominium basis and only to pur-
chasers eligible for a loan or insurance under subsection (a). The 
principal obligation of any blanket loan made or insured under this 
subsection shall in no case exceed the sum of the individual amounts 
of the loans which could be made or insured with respect to the indi-
vidual dwelling units in the project under subsection (a). 
"Condominium." 
u ^^^ ^g ^ggj -j^ ^j^jg gectiou, the term 'condominium' means a multi-
unit housing project which is subject to a plan of family unit owner-
ship acceptable to the Secretary under which each dwelling unit is 
individually owned and each such owner holds an undivided interest 
in the common areas and facilities which serve the project." 
42 use 1487. 
^^^ Section 517(b) of such Act is amended by striking out "and 
slpr^? ^^^°''" 
^24" and inserting in lieu thereof "524, and 526". 
(c) (1) Section 521(a) (1) of such Act (as amended by section 514 
Ante, p. 696. 
(g/) of this Act) Is amended— 
42 use 1485. 
(^) by striking out "and loans under section 515" and insert-
ing in lieu thereof "loans under section 515"; and 
(B) by inserting after "elderly families," the following: "and 
loans under section 526 to provide condominium housing for per-
sons and families of low or moderate income,". 
(2) Section 521 (b) of such Act is amended— 
(A) by striking out "or 517(a)(1)" and inserting in lieu 
thereof 'S 517(a)(1), or 526(a)"; and 
(B) by inserting "or 526 (c)" after "under section 515". 
(3) Section 521(c) of such Act (as amended by section 514(b) 
of this Act) is amended by inserting "and section 526" after "section 
617(h)". 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
699 
TRANSFER OF P R E - 1 9 6 5 INSURED HOUSING LOANS TO T H E RURAL HOUSING 
INSURANCE 
FUND 
SEC. 517. Section 517(b) of the Housing Act of 1949 is amended 
^"'^' P- ^^^• 
by adding at the end thereof the following new sentences: "The notes 
held in the Agricultural Credit Insurance Fund (7 U.S.C. 1929) 
which evidence loans made or insured by the Secretary under section 
514 or 515(b), the rights and liabilities of that Fund under insurance Anfe^^p^elT.'*' 
contracts relating to such loans held by insured investors, the mort-
gages securing the obligations of the borrowers under such loans held-
in that Fund or by insured investors, and all rights to subsequent col-
lections on and proceeds of such notes, contracts, and mortgages, are 
hereby transferred to the Rural Housing Insurance Fund and for 
the purposes of this title and any other Act shall be subject to the 
provisions of this section as if created pursuant thereto. The Rural 
Housing Insurance Fund shall compensate the Agricultural Credit 
Insurance Fund for the aggregate unpaid principal balance plus 
accrued interest of the notes so transferred.". 
MOBILE HOMES 
SEC. 518. Title V of the Housing Act of 1949 (as amended by sec-
tions 515 and 516(a) of this Act) is amended by adding at the end 698?'^' ^^* ''^^' 
thereof the following new section: 
"MOBILE HOMES 
"SEC. 527. (a) As used in this title, the term 'housing' shall, not- 
"s^usc^ugog. 
withstanding any other provision of this title and to the extent deemed 
practicable by the Secretary, include mobile homes and mobile home 
sites. 
"(b) With respect to mobile homes and mobile home sites financed 
under this title, the Secretary shall— 
"(1) prescribe minimum property standards to assure the liva-
bility and durability of the mobile home and the suitability of 
the site on which it is to be located, and 
" (2) obtain assurances from the borrower that the mobile home 
will be placed on a site which complies with standards prescribed 
by the Secretary and with applicable local requirements. 
Loans under this title for the purchase of mobile homes and sites 
shall be made on the same terms and conditions as are applicable 
under section 2 of the National Housing Act to obligations 
financing 
^"^^' P* ^^^• 
the purchase of mobile homes and lots on which to place such homes." 
CONTRACT SERVICES AND FEES 
SEC. 519. (a) Section 506(a) of the Housing Act of 1949 is amended 
^2 use i476. 
by striking out ", as may be required by the Secretary, by competent 
employees of the Secretary" and inserting in lieu thereof "as required 
by the Secretary". 
(b) Section 5l7(j) (3) of such Act is amended by inserting after 
42 use i487. 
"borrowers," the following: "and other services customary in the 
industry, construction inspections, commercial appraisals, servicing of 
loans, and other related program services and expenses,". 
STATE AND LOCAL AGENCIES 
SEC. 520. Section 501(c) of the Housing Act of 1949 is amended by 
adding at the end thereof the following: "If an applicant is a State or 
local public agency— 
42 u s e 1471. 
700 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
"(A) the provisions of clause (3) shall not apply to its appli-
cation; and 
"(B) the applicant shall be eligible to participate in any pro-
gram under this title if the persons or families to be served by the 
applicant with the assistance being sought would be eligible to 
participate in such program." 
National Mobile 
TITLE VI—MOBILE HOME CONSTRUCTION AND 
Home Construe-
tion and Safety 
SAFETY STANDARDS 
Standards Act of 
1974. 
42 u s e 5401 
note. 
SHORT TITLE 
SEC. 601. This title may be cited as the "National Mobile Home Con-
struction and Safety Standards Act of 1974". 
STATEMENT OF PURPOSE 
42 use 5401. 
gj,(~,_ gQ2^ The Congress declares that the purposes of this title are 
to reduce the number of personal injuries and deaths and the amount of 
insurance costs and property damage resulting from mobile home 
accidents and to improve the quality and durability of mobile homes. 
Therefore, the Congress determines that it is necessary to establish 
Federal construction and safety standards for mobile homes and to 
authorize mobile home safety research and development. 
42 u s e 5402. 
DEFINITIONS 
SEC. 603. As used in this title, the term—• 
(1) "mobile home construction" means all activities relating to 
the assembly and manufacture of a mobile home including but not 
limited to those relating to durability, quality, and safety; 
(2) "dealer" means any person engaged in the sale, leasing, 
or distribution of new mobile homes primarily to persons who in 
good faith purchase or lease a mobile home for purposes other than 
resale; 
(3) "defect" includes any defect in the performance, construc-
tion, components, or material of a mobile home that renders the 
home or any part thereof not 
fit 
for the ordinary use for which it 
was intended; 
(4) "distributor" means any person engaged in the sale and 
distribution of mobile homes for resale; 
(5) "manufacturer" means any person engaged in manufactur-
ing or assembling mobile homes, including any person engaged in 
importing mobile homes for resale; 
(6) "mobile home" means a structure, transportable in one or 
more sections, which is eight body feet or more in width and is 
thirty-two body feet or more in length, and which is built on a 
permanent chassis and designed to be used as a dwelling with or 
without a permanent foundation when connected to the required 
utilities, and includes the plumbing, heating, air-conditioning, and 
electrical systems contained therein; 
(7) "Federal mobile home construction and safety standard" 
means a reasonable standard for the construction, design, and 
performance of a mobile home which meets the needs of the pub-
lic including the need for quality, durability, and safety; 
(8) "mobile home safety" means the performance of a mobile 
home in such a manner that the public is protected against any 
unreasonable risk of the occurrence of accidents due to the design 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
701 
or construction of such mobile home, or any unreasonable risk of 
death or injury to the user or to the public if such accidents do 
occur; 
(9) "imminent safety hazard" means an imminent and unrea-
sonable risk of death or severe personal injury; 
(10) "purchaser"' means the first person purchasing a mobile 
home in good faith for purposes other than resale; 
(11) "Secretary" means the Secretary of Housing and Urban 
Development; 
(12) "State"' includes each of the several States, the District of 
Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin 
Islands, the Canal Zone, and American Samoa; and 
(13) "United States district courts" means the Federal district 
courts of the United States and the United States courts of the 
Commonwealth of Puerto Eico, Guam, the Virgin Islands, the 
Canal Zone, and American Samoa. 
FEDERAL MOBILE HOME CONSTRUCTION AND SAFETY STANDARDS 
SEC. 604. (a) The Secretary, after consultation with the Consumer 
'^^ use 5403. 
Product Safety Commission, shall establish by order appropriate Fed-
eral mobile home construction and safety standards. Each such Fed-
eral mobile home standard shall be reasonable and shall meet the 
highest standards of protection, taking into account existing State 
and local laws relating to mobile home safety and construction. 
(b) All orders issued under this section shall be issued after notice ^°^'-''^-
and an opportunity for interested persons to participate are provided 
in accordance with the provisions of section 553 of title 5, United 
States Code. 
(c) Each order establishing a Federal mobile home construction and f^^^f 
"^'^^''^e' ^^' 
safety standard shall specify the date such standard is to take effect, 
which shall not be sooner than one hundred and eighty days or later 
than one year after the date such order is issued, unless the Secretary 
finds, for good cause shown, that an earlier or later effective date is in 
the public interest, and publishes his reasons for such finding. 
(d) Whenever a Federal mobile home construction and safety 
standard established under this title is in effect, no State or political 
subdivision of a State shall have any authority either to establish, or 
to continue in effect, with respect to any mobile home covered, any 
standard regarding construction or safety applicable to the same 
aspect of performance of such mobile home which is not identical to 
the Federal mobile home construction and safety standard. 
(e) The Secretary may by order amend or revoke any Federal ^ "^"^"f^^^effec-
mobile home construction or safety standard established under this '^^'""'^ ' 
section. Such order shall specify the date on which such amend-
ment or revocation is to take effect, which shall not be sooner than 
one hundred and eighty days or later than one year from the date 
the order is issued, unless the Secretary finds, for good cause shown, 
than an earlier or later date is in the public interest, and publishes his 
reasons for such finding. 
(f) In establishing standards under this section, the Secretary 
shall— 
(1) consider relevant available mobile home construction and 
safety data, including the results of the research, development, 
testing, and evaluation activities conducted pursuant to this title, 
and those activities conducted by private organizations and other 
governmental agencies to determine how to best protect the 
public; 
tive date. 
702 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
(2) consult with such State or interstate agencies (including 
legislative committees) as he deems appropriate; 
(3) consider whether any such proposed standard is reason-
able for the particular type of mobile home or for the geographic 
region for which it is prescribed; 
(4) consider the probable effect of such standard on the cost 
of the mobile home to the public; and 
(5) consider the extent to which any such standard will con-
tribute to carrying out the purposes of this title. 
(g) The Secretary shall issue an order establishing initial Federal 
mobile home construction and safety standards not later than one year 
after the date of enactment of this Act. 
NATIONAL MOBILE HOME ADVISORY COUNCIL 
42 use 5404. 
Appointment; 
5 use 101 et 
seq. 
eonsultation. 
SEC. 605. (a) The Secretary shall appoint a National Mobile Home 
m^bership?" 
Advisory Council with the following composition: eight members 
selected from among consumer organizations, community organiza-
tions, and recognized consumer leaders; eight members from the mobile 
home industry and related groups including at least one representa-
tive of small business; and eight members selected from government 
agencies including Federal, State, and local governments. Appoint-
ments under this subsection shall be made without regard to the provi-
sions of title 5, United States Code, relating to appointments in the 
competitive service, classification, and General Schedule pay rates. 
The Secretary shall publish the names of the members of the Council 
annually and shall designate which members represent the general 
public. 
(b) The Secretary shall, to the extent feasible, consult with the 
Advisory Council prior to establishing, amending, or revoking any 
mobile home construction or safety standard pursuant to the provisions 
of this title. 
eompensation. 
^^^ ^^^ 
member of the National Mobile Home Advisory Council 
who is appointed from outside the Federal Government may be 
compensated at a rate not to exceed $100 per diem (including travel-
time) when engaged in the actual duties of the Advisory Council. 
Such members, while away from their homes or regular places of 
business, may be allowed travel expenses, including per diem in lieu 
of subsistence as authorized by section 5703(b) of title 5, United 
States Code, for persons in the Government service employed inter-
mittently. 
JUDICIAL REVIEW OF ORDERS 
42^usc"5405T^' 
^^^' ^^^' (^)(1) ^^ ^ case of actual controversy as to the validity 
of any order under section 604, any person who may be adversely 
affected by such order when it is effective may at any time prior to the 
sixtieth day after such order is issued file a petition with the United 
States court of appeals for the circuit wherein such person resides or 
has his principal place of business, for judicial review of such order. 
A copy of the petition shall be forthwith transmitted by the clerk 
of the court to the Secretary or other officer designated by him for 
that purpose. The Secretary thereupon shall file in the court the 
record of the proceedings on which the Secretary based his order, as 
provided in section 2112 of title 28, United States Code. 
evidenceT^ 
(2) If the petitioner applies to the court for leave to adduce addi-
tional evidence, and shows to the satisfaction of the court that such 
additional evidence is material and that there were reasonable grounds 
for the failure to adduce such evidence in the proceeding before the Sec-
retary, the court may order such additional evidence (and evidence in 
rebuttal thereof) to be taken before the Secretary, and to be adduced 
88 STAT.] 
PUBLIC LAW 93-383-AUG. 22, 1974 
703 
upon the hearing, in such manner and upon such terms and conditions 
as to the court may seem proper. The Secretary may modify his find-
ings as to the facts, or make new findings, by reason of the additional 
evidence so taken, and he shall file such modified or new findings, and 
his recommendation, if any, for the modification or setting aside of 
his original order, with the return of such additional evidence. 
(3) Upon the filing of the petition referred to in paragraph (1) 
of this subsection, the court shall have jurisdiction to review the order 
in accordance with the provisions of sections 701 through 706 of title 
5, United States Code, and to grant appropriate relief. 
(4) The judgment of the court affirming or setting aside, in whole 
or in part, any such order of the Secretary shall be final, subject to 
review by the Supreme Court of the United States upon certiorari or 
certification as provided in section 1254 of title 28, United States Code. 
(5) Any action instituted under this subsection shall survive, not-
withstanding any change in the person occupying the office of Secre-
tary or any vacancy in such office. 
(6) The remedies provided for in this subsection shall be in addition 
to and not in substitution for any other remedies provided by law. 
(b) A certified copy of the transcript of the record and proceedings 
under this section shall be furnished by the Secretary to any interested 
party at his request and payment of the costs thereof, and shall be 
admissible in any criminal, exclusion of imports, or other proceeding 
arising under or in respect of this title, irrespective of whether pro-
ceedings with respect to the order have previously been initiated or 
become final under subsection (a). 
Jurisdiction. 
Savings provi-
Transcript, 
copies. 
PUBLIC INFORMATION 
SEC. 607. (a) Whenever any manufacturer is opposed to any action 
of the Secretary under section 604 or under any other provision of this 
title on the grounds of increased cost or for other reasons, the manu-
facturer shall submit such cost and other information (in such detail 
as the Secretary may by rule or order prescribe) as may be necessary 
in order to properly evaluate the manufacturer's statement. 
(b) Such information shall be available to the public unless the man-
ufacturer establishes that it contains a trade secret or that disclosure 
of any portion of such information would put the manufacturer at a 
substantial competitive disadvantage. Notice of the availability of 
such information shall be published promptly in the Federal Register. 
If the Secretary determines that any portion of such information con-
tains a trade secret or that the disclosure of any portion of such infor-
mation would put the manufacturer at a substantial competitive 
disadvantage, such portion may be disclosed to the public only in such 
manner as to preserve the confidentiality of such trade secret or in 
such combined or summary form so as not to disclose the identity of 
any individual manufacturer, except that any such information may 
be disclosed to other officers or employees concerned with carrying out 
this title or when relevant in any proceeding under this title. Nothing 
in this subsection shall authorize the withholding of information by 
the Secretary or any officer or employee under his control from the 
duly authorized committees of the Congress. 
(c) If the Secretary proposes to establish, amend, or revoke a Fed-
eral mobile home construction and safety standard under section 604 
on the basis of information submitted pursuant to subsection (a), 
he shall publish a notice of such proposed action, together with the 
reasons therefor, in the Federal Register at least thirty days in 
advance of making a final determination, in order to allow interested 
parties an opportunity to comment. 
42 u s e 5406. 
Publication in 
Federal Register, 
Safety standard, 
amendment or 
revocation; pub-
lication in Fed-
eral Register. 
704 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
"Cost infor-
mation." 
42 u s e 5407. 
Grants. 
(d) For purposes of this section, "cost information" means informa-
tion with respect to alleged cost increases resulting from action by the 
Secretary, in such a form as to permit the public and the Secretary to 
make an informed judgment on the validity of the manufacturer's 
statements. Such term includes both the manufacturer's cost and the 
cost to retail purchasers. 
(e) Nothing in this section shall be construed to restrict the author-
ity of the Secretary to obtain or require submission of information 
under any other provision of this title. 
RESEARCH, TESTING, DEVELOPMENT, AND TRAINING 
SEC. 608. (a) The Secretary shall conduct research, testing, develop-
ment, and training necessary to carry out the purposes of this title, 
including, but not limited to— 
(1) collecting data from any source for the purpose of deter-
mining the relationship between mobile home performance char-
acteristics and (A) accidents involving mobile homes, and (B) 
the occurrence of death, personal injury, or damage resulting from 
such accidents; 
(2) procuring (by negotiation or otherwise) experimental and 
other mobile homes for research and testing purposes; and 
(3) selling or otherwise disposing of test mobile homes and 
reimbursing^ the proceeds of such sale or disposal into the current 
appropriation available for the purpose of carrying out this title. 
(b) The Secretary is authorized to conduct research, testing, devel-
opment, and training as authorized to be carried out by subsection (a) 
of this section by contracting for or making grants for the conduct 
of such research, testing, development, and training to States, inter-
state agencies, and independent institutions. 
COOPERATION W I T H PUBLIC AND PRIVATE AGENCIES 
SEC. 609. The Secretary is authorized to advise, assist, and cooperate 
with other Federal agencies and with State and other interested pub-
lic and private agencies, in the planning and development of— 
(1) mobile home construction and safety standards; and 
(2) methods for inspecting and testing to determine compliance 
with mobile home standards. 
PROHIBITED ACTS 
42 use 5409. 
Q^^^ g^Q. (a) No pcrson shall— 
(1) make use of any means of transportation or communica-
tion affecting interstate or foreign commerce or the mails to 
manufacture for sale, lease, sell, offer for sale or lease, or intro-
duce or deliver, or import into the United States, any mobile 
home which is manufactured on or after the effective date of any 
applicable Federal mobile home construction and safety standard 
under this title and which does not comply with such standard, 
except as provided in subsection (b), where such manufacture, 
lease, sale, offer for sale or lease, introduction, delivery, or 
importation affects commerce; 
(2) fail or refuse to permit access to or copying of records, or 
fail to make reports or provide information, or fail or refuse to 
permit entry or inspection, as required under section 614; 
(3) fail to furnish notification of any defect as required by 
section 615; 
(4) fail to issue a certification required by section 616, or issue 
a certification to the effect that a mobile home conforms to all 
42 u s e 5408. 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
7m 
applicable Federal mobile home construction and safety standards, 
if such person in the exercise of due care has reason to know that 
such certification is false or misleading in a material respect; or 
(5) fail to comply with a final order issued by the Secretary 
under this title. 
(b) (1) Paragraph (1) of subsection (a) shall not apply to the sale, 
the offer for sale, or the introduction or delivery for introduction in 
interstate commerce of any mobile home after the first purchase of it 
in good faith for purposes other than resale. 
(2) For purposes of section 611, paragraph (1) of subsection (a) 
shall not apply to any person who establishes that he did not have 
reason to know in the exercise of due care that such mobile home is not 
in conformity with ajiplicable Federal mobile home construction and 
safety standards, or to any person who, prior to such first purchase, 
holds a certificate issued by the manufacturer or importer of such 
mobile home to the eifeet that such mobile home conforms to all appli-
cable Federal mobile home construction and safety standards, unless 
such person knows that such mobile home does not so conform. 
(3) A mobile home offered for importation in violation of para- re^uLT/onl""' 
graph (1) of subsection (a) shall be refused admission into the United 
States under joint regulations issued by the Secretary of the Treasury 
and the Secretary, except that the Secretary of the Treasury and the 
Secretary may, by such regulations, provide for authorizing the 
importation of such mobile home into the United States upon such 
terms and conditions (including the furnishing of a bond) as may 
appear to them appropriate to insure that any such mobile home will 
be brought into conformity with any applicable Federal mobile home 
construction or safety standard prescribed under this title, or will be 
exported from, or forfeited to, the United States. 
(4) The Secretary of the Treasury and the Secretary may, by joint 
regulations, permit the importation of any mobile home after the first 
purchase of it in good faith for purposes other than resale. 
(5) Paragraph (1) of subsection (a) shall not apply in the case of 
a mobile home intended solely for export, and so labeled or tagged on 
the mobile home itself and on the outside of the container, if any, 
in which it is to be exported. 
(c) Compliance with any Federal mobile home construction or 
safety standard issued under this title does not exempt any person 
from any liability under common law. 
CIVIL AND CRIMIXAL 
PENALTY 
SEC. 611. (a) Whoever violates any provision of section 610, or any 
'^^ ^^^ 54io. 
regulation or final order issued thereunder, shall be liable to the United 
States for a civil penalty of not to exceed $1,000 for each such viola-
tion. Each violation of a provision of section 610, or any regulation or 
order issued thereunder shall constitute, a separate violation with 
respect to each mobile home or with respect to each failure or refusal 
to allow or perform an act required thereby, except that the maximum 
civil penalty may not exceed $1,000,000 for any related series of viola-
tions occurring within one year from the date*^ of the first violation. 
(b) An individual or a director, officer, or agent of a corporation 
who knowingly and willfully violates section 610 in a manner which 
threatens the health or safety of any purchaser shall be fined not more 
than $1,000 or imprisoned not more than one year, or both. 
JURISDICTION AND 
VENUE 
SEC. 612. (a) The United States district courts shall have jurisdic- 
^^ "^^ ^^^^• 
tion, for cause shown and subject to the provisions of rule 65 (a) and 
Notice. 
or jury 
706 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
28 use app. 
^1^^ Q£ ^j^g Federal Rules of Civil Procedure, to restrain violations of 
this title, or to restrain the sale, offer for sale, or the importation into 
the United States, of any mobile home which is determined, prior to 
the first purchase of such mobile home in good faith for purposes 
other than resale, not to conform to applicable Federal mobile home 
construction and safety standards prescribed pursuant to this title or 
to contain a defect which constitutes an imminent safety hazard, upon 
petition by the appropriate United States attorney or the Attorney 
General on behalf of the United States. Whenever practicable, the 
Secretary shall give notice to any person against whom an action for 
injunctive relief is contemplated and afford him an opportunity to 
present his views and the failure to give such notice and afford such 
opportunity shall not preclude the granting of appropriate relief. 
^!^,tv^ ^^ ''°"'^* 
(^) ^^ ^^y proceeding for criminal contempt for violation of an 
injunction or restraining order issued under this section, which viola-
tion also constitutes a violation of this title, trial shall be by the court 
or, upon demand of the accused, by a jury. Such trial shall be conducted 
in accordance with the practice and procedure applicable in the case 
of proceedings subject to the provisions of rule 42(b) of the Federal 
18 use app. 
^^Yes of Criminal Procedure. 
(c) Actions under subsection (a) of this section and section 611 
may be brought in the district wherein any act or transaction consti-
tuting the violation occurred, or in the district wherein the defendant 
is found or is an inhabitant or transacts business, and process in such 
cases may be served in any other district of which the defendant is an 
inhabitant or wherever the defendant may be found. 
(d) In any action brought by the United States under subsection 
(a) of this section or section 611, subpenas by the United States for 
witnesses who are required to attend at United States district court 
may run into any other district. 
(e) It shall be the duty of every manufacturer offering a mobile 
home for importation into the United States to designate in writing 
an agent upon whom service of all administrative and judicial proc-
esses, notices, orders, decisions, and requirements may be made for 
and on behalf of such manufacturer, and to file such designation with 
the Secretary, which designation may from time to time be changed 
by like writing, similarly filed. Service of all administrative and judi-
cial processes, notices, orders, decisions, and requirements may be 
made upon such manufacturer by service upon such designated agent 
at his office or usual place of residence with like effect as if made per-
sonally upon such manufacturer, and in default of such designation 
of such agent, service of process or any notice, order, requirement, or 
decision in any proceeding before the Secretary or in any judicial 
proceeding pursuant to this title may be made by mailing such process, 
notice, order, requirement, or decision to the Secretary by registered 
or certified mail. 
NONCOMPLIANCE WITH S
T
A
N
D
A
R
D
S 
42 use 5412. 
jgj,(. Qi^^ (^^^ jf i^Q Secretary or a court of appropriate jurisdiction 
determines that any mobile home does not conform to applicable Fed-
eral mobile home construction and safety standards, or that it contains 
a defect which constitutes an imminent safety hazard, after the sale 
of such mobile home by a manufacturer to a distributor or a dealer and 
prior to the sale of such mobile home by such distributor or dealer to 
a purchaser— 
(1) the manufacturer shall immediately repurchase such mobile 
home from such distributor or dealer at the price paid by such 
distributor or dealer, plus all transportation charges involved 
and a reasonable reimbursement of not less than 1 per centum per 
88 STAT.] 
PUBLIC LAW 93-383-AUG. 22, 1974 
707 
month of such price paid prorated from the date of receipt by 
certified mail of notice of such nonconformance to the date of 
repurchase by the manufacturer; or 
(2) the manufacturer, at his own expense, shall immediately 
furnish the purchasing distributor or dealer the required conform-
ing part or parts or equipment for installation by the distributor 
or dealer on or in such mobile home, and for the installation 
involved the manufacturer shall reimburse such distributor or 
dealer for the reasonable value of such installation plus a rea-
sonable reimbursement of not less than 1 per centum per month of 
the manufacturer's or distributor's selling price prorated from the 
date of receipt by certified mail of notice of such nonconformance 
to the date such vehicle is brougiht into conformance with applica-
ble Federal standards, so long as the distributor or dealer proceeds 
with reasonable diligence with the installation after the required 
part or equipment is received. 
The value of such reasonable reimbursements as specified in para-
graphs (1) and (2) of this subsection shall be fixed by mutual agree-
ment of the parties, or, failing such agreement, by the court pursuant 
to the provisions of subsection (b). 
(b) If any manufacturer fails to comply with the requirements 
of subsection (a), then the distributor or dealer, as the case may be, 
to whom such mobile home has been sold may bring an action seeking 
a court injunction compelling compliance with such requirements 
on the part of such manufacturer. Such action may be brought in 
any district court in the United States in the district in which such 
manufacturer resides, or is found, or has an agent, without regard to 
the amount in controversy, and the person bringing the action shall also 
be entitled to recover any damage sustained by him, as well as all 
court costs plus reasonable attorneys' fees. Any action brought pur-
suant to this section shall be forever barred unless commenced within 
three years after the cause of action shall have accrued. 
Parts, replace-
ment and reim-
bursement for 
installation. 
Noncompliance, 
court injunction. 
Statute of 
limitations. 
INSPECTION or MOBILE HOMES AND RECORDS 
SEC. 614. (a) The Secretary is authorized to conduct such inspec-
tions and investigations as may be necessary to promulgate or enforce 
Federal mobile home construction and safety standards established 
under this title or otherwise to carry out his duties under this title. 
He shall furnish the Attorney General and, when appropriate, the 
Secretary of the Treasury any information obtained indicating non-
compliance with such standards for appropriate action. 
(b) (1) For purposes of enforcement of this title, persons duly 
designated by the Secretary, upon presenting appropriate credentials 
to the owner, operator, or agent in charge, are authorized— 
(A) to enter, at reasonable times and without advance notice, 
any factory, warehouse, or establishment in which mobile homes 
are manufactured, stored, or held for sale; and 
(B) to inspect, at reasonable times and within reasonable 
limits and in a reasonable manner, any such factory, warehouse, 
or establishment, and to inspect such books, papers, records, and 
documents as are set forth in subsection (c). Each such inspection 
shall be commenced and completed with reasonable promptness. 
(2) The Secretary is authorized to contract with State and local 
governments and private inspection organizations to carry out his 
functions under this subsection. 
(c) For the purpose of carrying out the provisions of this title, 
the Secretary is authorized— 
(1) to hold such hearings, take such testimony, sit and act 
at such times and places, administer such oaths, and require, by 
42 use 5413. 
Hearings. 
708 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 ST 
AT, 
Witness fees. 
Violation, 
penalty. 
Building plans, 
submittal to 
Secretary for ap-
proval. 
Records and 
reports, inspec-
tion. 
subpena or otherwise, the attendance and testimony of such wit-
nesses and the production of such books, papers, correspondence, 
memorandums, contracts, agreements, or other records, as the 
Secretary or such officer or employee deems advisable. Witnesses 
summoned pursuant to this subsection shall be paid the same fees 
and mileage that are paid witnesses in the courts of the United 
States; 
(2) to examine and copy any documentary evidence of any 
person having materials or information relevant to any function 
of the Secretary under this title; 
(3) to require, by general or special orders, any person to file, in 
such form as the Secretary may prescribe, reports or answers in 
writing to specific questions relating to any function of the Secre-
tary under this title. Such reports and answers shall be made 
under oath or otherAvise. and shall be filed with the Secretary 
within such reasonable period as the Secretary may "prescribe; 
(4) to request from any Federal agency any information he 
deems necessary to carry out his functions under this title, and 
each such agency is authorized and directed to cooperate with the 
Secretary and to furnish such information upon request made by 
the Secretary, and the head of any Federal agency is authorized 
to detail, on a reimbursable basis, any personnel of such agency 
to assist in carrying out the duties of the Secretary under this 
title; and 
(5) to make available to the public any information which may 
indicate the existence of a defect which relates to mobile home 
construction or safety or of the failure of a mobile home to comply 
with applicable mobile home construction and safety standards. 
The Secretary shall disclose so much of other information 
obtained under this subsection to the public as he determines will 
assist in carrying out this title; but he shall not (under the author-
ity of this sentence) make available or disclose to the public 
any information which contains or relates to a trade secret or any 
information the disclosure of which would put the person furnish-
ing such information at a substantial competitive disadvantage, 
unless he determines that it is necessary to carry out the purpose of 
this title. 
(d) Any of the district courts of the United States within the juris-
diction of which an inquiry is carried on may, in the case of contumacy 
or refusal to obey a subpena or order of the Secretary issued under 
paragraph (1) or paragraph (3) of subsection (c) of this section, issue 
an order requiring compliance therewith; and any failure to obey such 
order of the court may be punished by such court as a contempt 
thereof. 
(e) Each manufacturer of mobile homes shall submit the building 
plans for every model of such mobile homes to the Secretary or his 
designee for the purpose of inspection under this section. The manu-
facturer must certify that each such building plan meets the Federal 
construction and safety standards in force at that time before the model 
involved is produced. 
(f) Each manufacturer, distributor, and dealer of mobile homes 
shall establish and maintain such records, make such reports, and pro-
vide such information as the Secretary may reasonably require to 
enable him to determine whether such manufacturer, distributor, or 
dealer has acted or is acting in compliance with this title and Federal 
mobile home construction and safety standards prescribed pursuant 
to this title and shall, upon request of a person duly designated by 
the Secretary, permit such person to inspect appropriate books, papers, 
records, and documents relevant to determining whether such manu-
facturer, distributor, or dealer has acted or is acting in compliance 
88 
STAT.] 
PUBLIC LAW 93-383~AUG. 22, 1974 
709 
with this title and mobile home construction and safety standards 
prescribed pursuant to this title. 
(g) Each manufacturer of mobile homes shall provide to the Sec-
retary such performance data and other technical data related to 
performance and safety as may be required to carry out the purposes 
of this title. These shall include records of tests and test results which 
the Secretary may require to be performed. The Secretary is author-
ized to require the manufacturer to give notification of such per-
formance and technical data to— 
(1) each prospective purchaser of a mobile home before its 
first sale for purposes other than resale, at each location where 
any such manufacturer's mobile homes are offered for sale by 
a person with whom such manufacturer has a contractual, 
proprietary, or other legal relationship and in a manner deter-
mined by the Secretary to be appropriate, which may include, but 
is not limited to, printed matter (A) available for retention by 
such prospective purchaser, and (B) sent by mail to such 
prospective purchaser upon his request; and 
(2) the first person who purchases a mobile home for purposes 
other than resale, at the time of such purchase or in printed 
matter placed in the mobile home. 
(h) All information reported to or otherwise obtained by the 
Secretary or his representative pursuant to subsection (b), (c), (f),or 
(g) which contains or relates to a trade secret, or which, if disclosed, 
would put the person furnishing such information at a substantial 
competitive disadvantage, shall be considered confidential, except that 
such information may be disclosed to other officers or employees 
concerned with carrying out this title or when relevant in any 
proceeding under this title. Nothing in this section shall authorize the 
withholding of information by the Secretary or any officer or employee 
under his control from the duly authorized committees of the Congress. 
Performance and 
technical data. 
Notification to 
purchasers. 
Information 
disclosure, ex-
ception. 
NOTTFICATIOX AND CORRECTION OF DEFECTS 
SEC. 615. (a) Every manufacturer of mobile homes shall furnish 
notification of any defect in any mobile home produced by such manu-
facturer which he determines, in good faith, relates to a Federal 
mobile home construction or safety standard or contains a defect 
which constitutes an imminent safety hazard to the purchaser of such 
mobile home, within a reasonable time after such manufacturer has 
discovered such defect. 
(b) 
The 
notification 
required 
by 
subsection 
(a) 
shall 
be 
accomplished— 
(1) by mail to the first purchaser (not including any dealer or 
distributor of such manufacturer) of the mobile home containing 
the defect, and to any subsequent purchaser to whom any war-
ranty on such mobile home has been transferred; 
(2) by mail to any other person who is a registered owner of 
such mobile hom.e and whose name and address has been ascer-
tained pursuant to procedures established under subsection (f); 
and 
(3) by mail or other more expeditious means to the dealer or 
dealers of such manufacturer to whom such mobile home was 
delivered. 
(c) The notification required by subsection (a) shall contain a clear 
description of such defect or failure to comply, an evaluation of the 
risk to mobile home occupants' safety reasonably related to such defect, 
and a statement of the measures needed to repair the defect. The 
notification shall also inform the owner whether the defect is a con-
struction or safety defect which the manufacturer will have corrected 
42 u s e 5414. 
Description. 
Notice. 
710 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
at no cost to the owner of the mobile home under subsection (g) or 
otherwise, or is a defect which must be corrected at the expense of 
the owner. 
ti^n°s"'tTdeaL"rs, 
(^) Every manufacturer of mobile homes shall furnish to the Secre-
copies to secre- tarj a true or representative copy of all notices, bulletins, and other 
^^'•y* 
communications to the dealers of such manufacturer or purchasers 
of mobile homes of such manufacturer regarding any defect in any 
dit" k)'^^rl'°ex- 
^^^^ mobile home produced by such manufacturer. The Secretary shall 
ception. ' 
disclose to the public so much of the information contained in such 
notices or other information obtained under section 614 as he deems 
will assist in carrying out the purposes of this title, but he shall not 
disclose any information which contains or relates to a trade secret, or 
which, if disclosed, would put such manufacturer at a substantial com-
petitive disadvantage, unless he determines that it is necessary to carry 
out the purposes of this title. 
(e) If the Secretary determines that any mobile home— 
(1) does not comply with an applicable Federal mobile home 
construction and safety standard prescribed pursuant to section 
604; or 
(2) contains a defect which constitutes an imminent safety 
hazard, 
then he shall immediately notify the manufacturer of such mobile 
home of such defect or failure to comply. The notice shall contain 
the findings of the Secretary and shall include all information upon 
Opportunity to 
^hlch thc fiudiugs are based. The Secretary shall afford such manu-
presen views. 
facturcr au opportuuity to present his views and evidence in support 
thereof, to establish that there is no failure of compliance. If after 
such presentation by the manufacturer the Secretary determines that 
such mobile home does not comply with applicable Federal mobile 
home construction or safety standards, or contains a defect which 
constitutes an imminent safety hazard, the Secretary shall direct the 
manufacturer to furnish the notification specified in subsections (a) 
and (b) of this section. 
chase°s'^ °^ ^'"^' 
(^) Every manufacturer of mobile homes shall maintain a record 
of the name and address of the first purchaser of each mobile home 
(for purposes other than resale), and, to the maximum extent feasible, 
shall maintain procedures for ascertaining the name and address of 
any subsequent purchaser thereof and shall maintain a record of names 
and addresses so ascertained. Such records shall be kept for each home 
produced by a manufacturer. The Secretary may establish by order 
procedures to be followed by manufacturers in establishing and main-
taining such records, including procedures to be followed by distrib-
utors and dealers to assist manufacturers to secure the information 
required by this subsection. Such procedures shall be reasonable for 
the particular type of mobile home for which they are prescribed. 
Notice o
f de- 
(g) A manufacturer required to furnish notification of a defect 
under subsection (a) or (e) shall also bring the mobile home into com-
pliance with applicable standards and correct the defect or have the 
defect corrected within a reasonable period of time at no expense to 
the owner, but only if— 
(1) the detect presents an unreasonable risk of injury or death 
to occupants of the affected mobile home or homes; 
(2) the defect can be related to an error in design or assembly 
of the mobile home by the manufacturer, 
PT°sent^views^° '^^^ Secretary may direct the manufacturer to make such corrections 
after providing an opportunity for oral and written presentation of 
views by interested persons. Nothing in this section shall limit the 
rights of the purchaser or any other person under any contract or 
applicable law. 
feet 
88 STAT. 
PUBLIC LAW 93-383-AUG. 22, 1974 
711 
(h) The manufacturer shall submit his plan for notifying owners 
of the defect and for repairing such defect (if required under sub-
section (g)) to the Secretary for his approval before implementing 
such plan. Whenever a manufacturer is required under subsection (g) 
to correct a defect, the Secretary shall approve with or without modi-
fication, after consultation with the manufacturer of the mobile home 
involved, such manufacturer's remedy plan including the date when, 
and the method by which, the notification and remedy required pur-
suant to this section shall be effectuated. Such date shall be the earliest 
practicable one but shall not be more than sixty days after the date of 
discovery or determination of the defect or failure to comply, unless 
the Secretary grants an extension of such period for good cause shown 
and publishes a notice of such extension in the Federal Register. Such 
manufacturer is bound to implement such remedy plan as approved by 
the Secretary. 
(i) Where a defect or failure to comply in a mobile home cannot be 
adequately repaired within sixty days from the date of discovery or 
determination of the defect, the Secretary may require that the mobile 
home be replaced with a new or equivalent home without charge, or 
that the purchase price be refunded in full, less a reasonable allow-
ance for depreciation based on actual use if the home has been in the 
possession of the owner for more than one year. 
Public 
''ederal ation in 
Register. 
CERTinCATIOX OF CONFORMITY WITH CONSTRUCTION AND SAFETY 
STANDARDS 
SEC. 616. E\ery manufacturer of mobile homes shall furnish to the 
distributor or dealer at the time of delivery of each such mobile home 
produced by such manufacturer certification that such mobile home 
conforms to all applicable Federal construction and safety standards. 
Such certification shall be in the form of a label or tag permanently 
affixed to each such mobile home. 
42 use 5415. 
CONSUMER INFORMATION 
SEC. 617. The Secretary shall develop guidelines for a consumer's 
manual to be provided to mobile home purchasers by the manufacturer. 
These manuals should identify and explain the purchasers' responsi-
bilities for operation, maintenance, and repair of their mobile homes. 
Consumer's 
manual. 
42 use 5416. 
EFFECT UPON ANTITRUST LAWS 
SEC. 618. Nothing contained in this title shall be deemed to exempt 
from the antitrust laws of the United States any conduct that would 
otherwise be unlawful under such laws, or to prohibit under the anti-
trust laws of the United States any conduct that would be lawful 
under such laws. As used in this section, the term "antitrust laws" 
includes, but is not limited to, the Act of July 2,1890, as amended; the 
Act of October 14, 1914, as amended; the Federal Trade Commission 
Act (15 U.S.C. 41 et seq.); and sections 73 and 74 of the Act of August 
27,1894, as amended. 
42 use 5417. 
"Antitrust 
laws." 
15 use 1. 
15 use 12. 
15 use 8, 9. 
USE OF RESEARCH AND TESTING FACILmES OF PUBLIC AGENCIES 
SEC. 619. The Secretary, in exercising the authority under this title, 
shall utilize the services, research and testing facilities of public agen-
cies and independent testing laboratories to the maximum extent prac-
ticable in order to avoid duplication. 
42 use 5418. 
712 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
42 u s e 5419. 
42 u s e 5420. 
42 u s e 5421. 
INSPECTION FEES 
SEC. 620. In carrying out the inspections required under this title, 
the Secretary may establish and impose on mobile home manufactur-
ers, distributors, and dealers such reasonable fees as may be necessary 
to offset the expenses incurred by him in conducting such inspections, 
except that this section shall not apply in any State which has in effect 
a State plan under section 623. 
PENALTIES ON INSPECTIONS 
SEC. 621. Any person, other than an officer or employee of the 
United States, or a person exercising inspection functions under a 
State plan pursuant to section 623, who knowingly and willfully fails 
to report a violation of any construction or safety standard established 
under section 604 may be fined up to $1,000 or imprisoned for up to 
one year, or both. 
PROHIBITION ON WAIVER OF RIGHTS 
SEC. 622. The rights afforded mobile home purchasers under this 
title may not be waived, and any provision of a contract or agreement 
entered into after the enactment of this title to the contrary shall 
be void. 
STATE J U R I S D I C T I O N ; STATE PLANS 
42 u s e 5422. 
Enforcement 
standards plan, 
Approval. 
SEC. 623. (a) Nothing in this title shall prevent any State agency 
or court from asserting jurisdiction under State law over any mobile 
home construction or safety issue with respect to which no Federal 
mobile home construction and safety standard has been established 
pursuant to the provisions of section 604. 
(b) Any State w^hich, at any time, desires to assume responsibility 
sub'i^7tar t*^'Sec- 
for enforcement of mobile home safety and construction standards 
••etary. 
relating to any issue with respect to which a Federal standard has been 
established under section 604, shall submit to the Secretary a State 
plan for enforcement of such standards. 
(c) The Secretary shall approve the plan submitted by a State 
under subsection (b), or any modification thereof, if such plan in his 
judgment— 
(1) designates a State agency or agencies as the agency or 
agencies responsible for administering the plan throughout the 
State; 
(2) provides for the enforcement of mobile home safety and 
construction standards promulgated under section 604; 
(3) provides for a right of entry and inspection of all facto-
ries, warehouses, or estaiblishments in such State in which mobile 
homes are manufactured and for the review of plans, in a manner 
which is identical to that provided in section 614; 
(4) provides for the imposition of the civil and criminal penal-
ties under section 611; 
(5) provides for the notification and correction procedures 
under section 615; 
(6) provides for the payment of inspection fees by manufac-
turers in amounts adequate to cover the costs of inspections; 
(7) contains satisfactory assurances that the State agency or 
agencies have or will have the legal authority and qualified per-
sonnel necessary for the enforcement of such standards; 
(8) give satisfactory assurances that such State will devote 
adequate funds to the administration and enforcement of such 
standards; 
88 STAT.] 
PUBLIC LAW 93-383-AUG. 22, 1974 
713 
(9) requires manufacturers, distributors, and dealers in such 
State to make reports to the Secretary in the same manner and to 
the same extent as if the State plan were not in effect; 
(10) provides that the State agency or agencies will make such 
reports to the Secretary in such form and containing such infor-
mation as the Secretary shall from time to time require; and 
(11) complies with such other requirements as the Secretary 
may by regulation prescribe for the enforcement of this title. 
(d) If the Secretary rejects a plan submitted under subsection (b), 
he shall afford the State submitting the plan due notice and opportu-
nity for a hearing before so doing. 
(e) After the Secretary approves a State plan submitted under 
subsection (b), he may, but shall not be required to, exercise his-
authority under this title with respect to enforcement of mobile home 
construction and safety standards in the State involved. 
(f) The Secretary shall, on the basis of reports submitted by the 
designated State agency and his own inspections, make a continuing 
evaluation of the manner in which each State having a plan approved 
under this section is carrying out such plan. Such evaluation shall be 
made by the Secretary at least annually for each State, and the results 
of such evaluation and the inspection reports on which it is based shall 
be promptly submitted to the appropriate committees of the Congress. 
Whenever the Secretary finds, after affording due notice and oppor-
tunity for a hearing, that in the administration of the State plan there 
is a failure to comply substantially with any provision of the State 
plan or that the State plan has become inadequate, he shall notify 
the State agency or agencies of his withdrawal of approval of such 
plan. Upon receipt of such notice by such State agency or agencies 
such plan shall cease to be in effect, but the State may retain juris-
diction in any case commenced before the withdrawal of the plan 
in order to enforce mobile home standards under the plan whenever 
the issues involved do not relate to the reasons for the withdrawal 
of the plan. 
GRANTS TO STATES 
SEC. 624. (a) The Secretary is authorized to make grants to the 
States which have designated a State agency under section 623 to 
assist them— 
(1) in identifying their needs and responsibilities in the area 
of mobile home construction and safety standards; or 
(2) in developing State plans under section 623. 
(b) The Governor of each State shall designate the appropriate 
State agency for receipt of any grant made by the Secretary under 
this section. 
(c) Any State agency designated by the Governor of a State desiring 
a grant under this section shall submit an application therefor to the 
Secretary. The Secretary shall review and either accept or reject such 
application. 
(d) The Federal share for each State grant under subsection (a) 
of this section may not exceed 90 per centum of the total cost to the 
State in identifying its needs and developing its plan. In the event the 
Federal share for all States under such subsection is not the same, the 
differences among, the States shall be established on the basis of objec-
tive criteria. 
RULES AND REGULATIONS 
SEC. 625. The Secretary is authorized to issue, amend, and revoke 
such rules and regulations as he deems necessary to carry out this title. 
Notice and 
hearing. 
Evaluation, 
submittal to con-
gressional com-
mittees. 
Notice and 
hearing. 
42 u s e 5423. 
Application. 
42 u s e 5424. 
714 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
ANNUAL REPORT TO CONGRESS 
pf 
"^idinf^'° 
^-^- ^^^- (^) "^^^ Secretary shall prepare and submit to the President 
42 use 5425. 
foT transmittal to the Congress on March 1 of each year a compre-
hensive report on the administration of this title for the preceding 
Contents. 
Calendar year. Such report shall include but not be restricted to (1) 
a thorough statistical compilation of the accidents, injuries, deaths, 
and property losses occurrmg in or involving mobile homes in such 
year; (2) a list of Federal mobile home construction and safety stand-
ards prescribed or in effect in such year; (3) the level of compliance 
with all applicable Federal mobile home standards; (4) a summary of 
all current research grants and contracts together with a description 
of the problems to be studied in such research; (5) an analysis and 
evaluation, including relevant policy recommendations, of research 
activities completed and technological progress achieved during such 
year; (6) a statement of enforcement actions including judicial deci-
sions, settlements, defect notifications, and pending litigation com-
menced during the year; and (T) the extent to which technical 
information was disseminated to the scientific community and con-
sumer-oriented information was made available to mobile home owners 
and prospective buyers. 
(b) The report required by subsection (a) of this section shall con-
tion? "" '"^"'° 
tain such recommendations for additional or revised legislation as 
the Secretary deems necessary to promote the improvement of mobile 
home construction and safety and to strengthen the national mobile 
home program. 
(c) In order to assure a continuing and effective national mobile 
home construction and safety program, it is the policy of Congress to 
encourage the adoption of State inspection of used mobile homes. 
Study and in- 
TherefoTC, to that end the Secretary shall conduct a thorough study 
and investigation to determine the adequacy of mobile home con-
struction and safety standards and mobile home inspection require-
ments and procedures applicable to used mobile homes in each State, 
and the effect of programs authorized by this title upon such standards, 
requirements, and procedures for used mobile homes, and report to 
Congress as soon as practicable, but not later than one year after the 
date of enactment of this Act, the results of such study, and recom-
mendations for such additional legislation as he deems necessary to 
carry out the purposes of this title. Such report shall also include rec-
ommendations by the Secretary relating to the problems of disposal 
of used mobile homes. 
Recommenda' 
tions for legisla 
vestigation. 
AUTHORIZATION OF APPROPRIATIONS 
42 use 5426. 
42 u s e 5401 
note. 
SEC. 627. There are authorized to be appropriated such sums as 
may be necessary to carry out the provisions of this title. 
E F F E C T I V E DATE 
SEC. 628. The provisions of this title shall take effect upon the expira-
tion of 180 days following the date of enactment of this title. 
Consumer Home TITLE VII—CONSUMER HOME MORTGAGE ASSISTANCE 
Mortgage Assist-
ance Act of 1974. 
12 u s e 1464 
note. 
SHORT TITLE 
SEC. 701. This title may be cited as the "Consumer Home Mortgage 
Assistance Act of 1974". 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
715 
PART A—^LENDING AND INVESTMENT POWERS, FEDERAL SAVINGS AND 
LOAN ASSOCIATIONS 
CONSTRUCTION LOANS 
SEC. 702. Section 5(c) of the Home Owners' Loan Act of 1933 (12 
U.S.C. 1464(c)) is amended by adding at the end thereof the follow-
ing new paragraph: 
"Without regard to any other provision of this subsection, any such 
association is authorized to invest an amount, not exceeding the greater 
of (A) the sum of its surplus, undivided profits, and reserves or (B) 
3 per centum of its assets, in loans or in interests therein the principal 
purpose of which is to provide financing with respect to what is or is 
expected to become primarily residential real estate within one hun-
dred miles of its home office or within the State in which such 
office is located, where (i) the association relies substantially for repay-
ment on the borrower's general credit standing and forecast of income, 
with or without other security, or (ii) the association relies on other 
assurances for repayment, including but not limited to a guaranty 
or similar obligation of a third party, and, in either case described 
in clause (i) or (ii), regardless of whether or not the association takes 
security; and investments under this sentence shall not be included in 
any percentage of assets or other percentage referred to in this 
subsection." 
SINGLE FAMILY DWELLING LIMITATIONS 
SEC. 703. Section 5(c) of the Home Owners' Loan Act of 1933 (12 
U.S.C. 1464(c)) is amended by striking out "$45,000" immediately 
before "for each single family dwelling" and inserting in lieu thereof 
"$55,000 (except that with respect to dwellings in Alaska, Guam, and 
Hawaii the foregoing limitation may, bv regulation of the Board, be 
increased by not to exceed 50 per centum)". 
LENDING AUTHORITY UNDER T H E HOME OWNERS' LOAN ACT 
SEC. 704. Section 5(c) of the Home Owners' Loan Act of 1933 (12 
U.S.C. 1464(c)), as amended by section 702 of this Act, is amended Supra. 
by adding at the end thereof the following new paragraph: 
"Subject to such prohibitions, limitations, and conditions as the 
Board may prescribe, any such association may invest in loans and 
advances of credit and interests therein upon the security of or 
respecting real property or interests therein used for primarily resi-
dential purposes (all of which may be defined by the Board) that do 
not comply with the limitations and restrictions in this subsection, but 
no investment shall be made by an association under this sentence if its 
aggregate outstanding investment under this sentence determined as 
prescribed by the Board, exclusive of any investment which is or 
at the time of its making was otherwise authorized, would thereupon 
exceed 5 per centum of its assets.". 
AMENDMENT TO T H E HOME 
OWNERS' LOAN ACT OF 1 9 3 3 CONCERNING 
PROPERTY IMPROVEMENT 
LOANS 
SEC. 705. The second and third undesignated paragraphs of section 
5(c) of the Home Owners' Loan Act of 1933 (12 U.S.C. 1464(c)) are 
amended by striking out "$5,000" and inserting in lieu thereof 
"$10,000". 
716 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
ADVANCES FROM A STATE CHARTERED CENTRAL RESERVE 
INSTITUTION 
INCLUDING MORTGAGE FINANCE 
AGENCIES 
Ante, 
p. 715. 
SEC. 706. Section 5(c) of the Home Owners' Loan Act of 1933 (12 
U.S.C. 1464(c)), as amended by sections 702 and 704 of this Act, is 
amended by adding at the end thereof the following new paragraph: 
"Subject to regulation by the Board but without regard to any other 
provision of this subsection, any such association whose general 
reserves, surplus, and undivided profits aggregate a sum in excess of 5 
per centum of its withdrawable accounts is authorized to borrow funds 
from a State mortgage finance agency of the State in which the head 
ofSce of such association is situated to the same extent as State law 
authorizes a savings and loan association organized under the laws of 
such State to borrow from the State mortgage finance agency, except 
that such an association may not make any loan of such funds at an 
interest rate which exceeds by more than 1% per centum per annum 
the interest rate paid to the State mortgage finance agency on the obli-
gations issued to obtain the funds so borrowed." 
PART B—NATIONAL BANKS 
REAL E S T A T E LOANS BY NATIONAL BANKS 
SEC 711. Section 24 of the Federal Reserve Act (12 U.S.C. 371) is 
amended to read as follows: 
"REAL ESTATE LOANS BY NATIONAL BANKS 
"SEC. 24 (a) (1) Any national banking association may make real 
estate loans, secured by liens upon unimproved real estate, upon 
improved real estate, including improved farmland and improved 
business and residential properties, and upon real estate to be improved 
by a building or buildings to be constructed or in the process of con-
struction, in an amount which when added to the amount unpaid upon 
prior mortgages, liens, encumbrances, if any, upon such real estate 
does not exceed the respective proportions of appraised value as 
provided in this section. A loan secured by real estate within the mean-
ing of this section shall be in the form of an obligation or obligations 
secured by a mortgage, trust deed, or other instrument, which shall 
constitute a lien on real estate in fee or, under such rules and regula-
tions as may be prescribed by the Comptroller of the Currency, on a 
leasehold under a lease which does not expire for at least ten years 
beyond the maturity date of the loan, and any national banking asso-
ciation may purchase or sell any obligations so secured in whole or in 
part. The amount of any such loan hereafter made shall not exceed 
66% per centum of the appraised value if such real estate is unim-
proved, 75 per centum of the appraised value if such real estate is 
improved by offsite improvements such as streets, water, sewers, or 
other utilities, 75 per centum of the appraised value if such real estate 
is in the process of being improved by a building or buildings to be 
constructed or in the process of construction, or 90 per centum of the 
appraised value if such real estate is improved by a building or build-
ings. If any such loan exceeds 75 per centum of the appraised value 
of the real estate or if the real estate is improved with a one- to four-
family dwelling, installment payments shall be required which are 
sufficient to amortize the entire principal of the loan within a period 
of not more than thirty years. 
"(2) The limitations and restrictions set forth in paragraph (1) 
shall not prevent the renewal or extension of loans heretofore made 
and shall not apply to real estate loans (A) which are insured under 
88 STAT.] 
PUBLIC LAW 93-383-AUG. 22, 1974 
717 
the provisions of the National Housing Act, (B) which are insured 
^
^ use noi 
by the Secretary of Agriculture pursuant to title I of the Bankhead-
Jones Farm Tenant Act, or the Act of August 28, 1937, as amended, J^^^lf^ ^°°° 
or title V of the Housing Act of 1949, as amended, or (C) which are ''"42'usc 1471. 
guaranteed by the Secretary of Housing and Urban Development, for 
the payment of the obligations of which the full faith and credit of 
the United States is pledged, and such limitations and restrictions 
shall not apply to real estate loans which are fully guaranteed or 
insured by a State, or any agency or instrumentality thereof, or by a 
State authority for the payment of the obligations of which the faith 
and credit of the State is pledged, if under the terms of the guaranty 
or insurance agreement the association will be assured of repayment 
in accordance with the terms of the loan, or to any loan at least 20 per 
centum of which is guaranteed under chapter 37 of title 38, United 
States Code. 
_ 
as use isoi. 
"(3) Loans which are guaranteed or insured as described in para-
graph (2) shall not be taken into account in determining the amount 
of real estate loans which a national banking association may make 
in relation to its capital and surplus or its time and savings deposits 
\ 
or in determining the amount of real estate loans secured by other 
than first liens. Where the collateral for any loan consists partly of 
real estate security and partly of other security, including a guaranty 
or endorsement by or an obligation or commitment of a person other 
than the borrower, only the amount by which the loan exceeds the 
value as collateral of such other security shall be considered a loan 
upon the security of real estate, and in no event shall a loan be con-
sidered as a real estate loan where there is a valid and binding agree-
ment which is entered into by a financially responsible lender or other 
party either directly with the association or which is for the benefit of 
or has been assigned to the association and pursuant to which agree-
ment the lender or other party is required to advance to the association 
within sixty months from the date of the making of such loan the full 
amount of the loan to be made by the association upon the security 
of real estate. Except as otherwise provided, no such association shall 
make real estate loans in an aggregate sum in excess of the amount 
of the capital stock of such association paid in and unimpaired plus 
the amount of its unimpaired surplus fund, or in excess of the amount 
of its time and savings deposits, whichever is greater: Provided, That 
the amount unpaid upon real estate loans secured by other than first 
liens, when added to the amount unpaid upon prior mortgages, liens, 
and encumbrances, shall not exceed in an aggregate sum 20 per centum 
of the amount of the capital stock of such association paid in and 
unimpaired plus 20 per centum of the amount of its unimpaired sur-
plus fund. 
"(b) Any national banking association may make real estate loans 
secured by liens upon forest tracts which are properly managed in 
all respects. Such loans shall be in the form of an obligation or obliga-
tions secured by mortgage, trust deed, or other such instrument; 
and any national banking association may purchase or sell any obli-
gations so secured in whole or in part. The amount of any such loan, 
when added to the amount unpaid upon prior mortgages, liens, and 
encumbrances, if any, shall not exceed 66% per centum of the 
appraised fair market value of the growing timber, lands, and 
improvements thereon offered as security and the loan shall be made 
upon such terms and conditions as to assure that at no time shall the 
loan balance, when added to the amount unpaid upon prior mortgages, 
liens, and encumbrances, if any, exceed 66% per centum of the origi-
nal appraised total value of the property then remaining. No such 
loan shall be made for a longer term than three years; except that 
any such loan may be made for a term not longer than fifteen years 
718 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
if the loan is secured by an amortized mortgage, deed of trust, or 
other such instrument under the terms of which the installment pay-
ments are sufficient to amortize the principal of the loan within a 
period of not more than fifteen years and at a rate at least 6% per 
centum per annum. All such loans secured by liens upon forest tracts 
shall be included in the permissible aggregate of all real estate loans 
and, when secured by other than first liens, in the permissible aggre-
gate of all real estate loans secured by other than first liens, prescribed 
in subsection (a), but no national banking association shall make 
forest tract loans in an aggregate sum in excess of 50 percentum of 
its capital stock paid in and unimpaired plus 50 per centum of its 
unimpaired surplus fund. 
"(c) Loans made to finance the construction of a building or build-
ings and having maturities of not to exceed sixty months where 
there is a valid and binding agreement entered into by a financially 
responsible lender or other party to advance the full amount of the 
bank's loan upon completion of the building or buildings, and loans 
made to finance the construction of residential or farm buildings and 
having maturities of not to exceed sixty months, may be considered 
as real estate loans if the loans qualify under this section, or such 
loans may be classed as commercial loans whether or not secured by 
a mortgage or similar lien on the real estate upon which the building 
or buildings are being consti'ucted, at the option of each national bank-
ing association that may have an interest in such loan: Provided, That 
no national banking association shall invest in, or be liable on, any 
such loans classed as commercial loans under this subsection in an 
aggregate amount in excess of 100 per centum of its actually paid-in 
and unimpaired capital plus 100 per centum of its unimpaired surplus 
fund. 
"(d) Notes representing loans made under this section to finance 
the construction of residential or farm buildings and having maturi-
ties of not to exceed nine months shall be eligible for discount as com-
mercial paper within the terms of the second paragraph of section 13 
of this Act if accompanied by a valid and binding agreement to 
advance the full amount of the loan upon the completion of the build-
ing entered into by an individual, partnership, association, or corpora-
tion acceptable to the discounting bank. 
"(e) Loans made to any borrower (i) where the association looks 
for repayment by relying primarily on the borrower's general credit 
standing and forecast of income, with or without other security, or (ii) 
secured by an assignment of rents under a lease, and where, in either 
case described in clause (i) or (ii) above, the association wishes to 
take a mortgage, deed of trust, or other instrument upon real estate 
(whether or not constituting a first lien) as a precaution against 
contingencies, and loans in which the Small Business Administration 
cooperates through agreements to participate on an immediate or 
deferred or guaranteed basis under the Small Business Act, shall not 
be considered as real estate loans within the meaning of this section 
but shall be classed as commercial loans. 
"(f) Any national banking association may make loans upon the 
security of real estate that do not comply with the limitations and 
restrictions in this section, if the total unpaid amount loaned, exclusive 
of loans which subsequently comply with such limitations and restric-
tions, does not exceed 10 per centum of the amount that a national 
banking association may invest in real estate loans. The total unpaid 
amount so loaned shall be included in the aggregate sum that such 
association may invest in real estate loans. 
"(g) Loans made pursuant to this section shall be subject to such 
conditions and limitations as the Comptroller of the Currency may 
prescribe by rule or regulation.". 
12 use 343. 
15 use 631 
note. 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
719 
PART C—FEDERAL CREDIT UNIONS 
LENDING AUTHORITY AND DEPOSITORY AUTHORITY 
J 
SEC. 721. (a) Paragraph (6) of section 107 of the Federal Credit 
Union Act (12 U.S.C. 1757(6)) is amended to read as follows: 
"(6) to make loans to its own directors and to members of its 
own supervisory credit committee provided that any such loan 
or aggregate of loans to one director or committee member which 
exceeds $2,500 plus pledged shares must be approved by the board 
of directors, and to permit directors and members of its own super-
visory or credit committee to act as guarantor or endorser of loans 
to other members, execept that when such a loan standing alone or 
when added to any outstanding loan or loans of the guarantor 
exceeds $2,500, approval by the board of directors is required;", 
(b) Paragraph (9) of such section is amended by inserting immedi-
ately before the semicolon at the end thereof the following: ", and for 
Federal credit unions or credit unions authorized by the Department 
of Defense operating suboffices on American military installations in 
foreign countries or trust territories of the United States to main-
tain demand deposit accounts in banks located in those countries or 
trust territories, subject to such regulations as may be issued by the 
Administrator and provided such banks are correspondents of banks 
described in this paragraph". 
FEES 
SEC. 722. The first sentence of section 109 of the Federal Credit 
Union Act (12 U.S.C. 1759) is amended by striking out "the entrance 
fee" and inserting in lieu thereof "a uniform entrance fee if required 
by the board of directors". 
DIRECTORS 
SEC. 723. (a) Tlie third sentence of section 113 of the Federal Credit 
Union Act (12 U.S.C. 1761b) is amended by inserting ", except that 
the board may designate a committee of not less than two to act as an 
investment committee, such investment committee to have charge of 
making investments under rules and procedures established by the 
board of directors" immediately after "have charge of investments 
other than loans to members". 
(b) The fourth sentence of such section is amended by striking out 
"act for it in the purchase and sale of securities, the borrowing of 
funds, and making of loans to other credit unions" and inserting in 
lieu thereof "exercise such authority as may be delegated to it subject 
to such conditions and limitations as may be prescribed by the board". 
(c) The fifth sentence of such section is amended by striking out 
"a membership officer" and inserting in lieu thereof "one or more mem-
bership officers". 
(d) Such section is amended by adding at the end thereof the fol-
lowing new sentence: "If a membership application is denied, the rea-
sons therefor shall be furnished in writing to the person whose 
application is denied, upon written request.". 
SUPERVISORY COMMITTEES 
SEC. 724. Section 115 of the Federal Credit Union Act (12 U.S.C. 
1761d) is amended by striking out "a semiannual" and inserting in 
lieu thereof "an annual". 
720 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
DIVIDENDS 
SEC. 725. (a) The first sentence of section 117 of the Federal Credit 
Union Act (12 U.S.C. 1763) is amended by striking out "Annually, 
semiannually, or quarterly, as the bylaws may provide" and inserting 
in lieu thereof "At such intervals as the board of directors may 
authorize". 
(b) The last sentence of such section is amended by striking out 
"for a month", and by striking out "which are or become fully paid 
up during the first ten days of that month" and inserting m lieu 
thereof "as authorized by the board of directors". 
APPLICABILITY 
SEC. 726. Section 126 of the Federal Credit Union Act (12 U.S.C. 
1772) is amended by inserting immediately after "the several terri-
tories" the following: ", includmg the trust territories,". 
DEFINITION OF MEMBERS ACCOUNTS 
SEC. 727. Section 202(h) of the Federal Credit Union Act (12 
U.S.C. 1782(h)) is amended— 
(1) by striking out "and" at the end of paragraph (1); 
(2) by striking out the period at the end of paragraph (2) and 
inserting in lieu thereof "; and"; and 
(3) by adding after paragraph (2) the following new para-
graph : 
"(3) the term 'members accounts' when applied to the premium 
charge for insurance of the accounts of federally insured credit 
unions shall not include amounts in excess of the insured account 
1
2 use 1787. 
j - ^ . ^ g^^ £Q^^J^ .^ section 207(c)." 
TERMINATION 
SEC. 728. (a) Section 206(a) of the Federal Credit Union Act 
(12 U.S.C. 1786(a)) is amended to read as follows: 
"(a) (1) Any insured credit union other than a Federal credit union 
may, upon not less than ninety days' written notice to the Adminis-
trator and upon the affirmative vote of a majority of its members 
within one year prior to the giving of such notice, terminate its status 
as an insured credit union. 
"(2) Any insured credit union, other than a Federal credit union, 
which has obtained a new certificate of insurance from a corporation 
authorized and duly licensed to insure member accounts may upon not 
less than ninety days' written notice to the Administrator convert 
from status as an insured credit union under this Act: Provided, That 
at the time of giving notice to the Administrator the provisions of 
paragraph (b) (1) of this section are not being invoked against the 
credit union.". 
(b) The first sentence of section 206(c) of such Act is amended by 
inserting " (1)" immediately after " (a)". 
(c) Section 206(d) of such Act is amended by inserting "(1)" 
immediately after "(d)", and by adding at the end thereof the follow-
ing new paragraphs: 
"(2) No credit union shall convert from status as an insured credit 
union under this Act as provided under subsection (a) (2) of this sec-
^"p^^- 
tion until the proposition for such conversion has been approved by a 
majority of all the directors of the credit union, and by affirmative vote 
of a majority of the members of the credit union who vote on the propo-
sition in a vote in which at least 20 per centum of the total membership 
12 u s e 1782. 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
721 
of the credit union participates. Following approval by the directors, 
written notice of the proposition and of the date set for the member-
ship vote shall be delivered in person to each member, or mailed to each 
member at the address for such member appearing on the records of 
the credit union, not more than thirty nor less than seven days prior to 
such date. The membership shall be given the opportunity to vote by 
mail ballot. If the proposition is approved by the membership, prompt 
and reasonable notice of insurance conversion shall be given to all 
members. 
" (3) In the event of a conversion of a credit union from status as an 
insured credit union under this Act as provided under subsection (a) 
(2) of this section, premium charges payable under section 202(c) of 
this Act shall be reduced by an amount proportionate to the number of 
calendar months for which the convertmg credit union will no longer 
be insured under this Act. As long as a converting credit union remains 
insured under this Act, it shall remain subject to all of the provisions 
of chapter II of this Act.". 
LIQUIDATION 
SEC. 729. Section 208(a) (1) of the Federal Credit Union Act (12 
U.S.C. 1788(a) (1)) is amended to read as follows: 
"(1) In order to reopen a closed insured credit union or in order 
to prevent the closing of an insured credit union which the Admin-
istrator has determined is in danger of closing or in order to assist 
in the voluntary liquidation of a solvent credit union, the Administra-
tor, in his discretion, is authorized to make loans to, or purchase the 
assets of, or establish accounts in such insured credit union upon such 
terms and conditions as he may prescribe. Except with respect to the 
voluntary liquidation of a solvent credit union, such loans shall be 
made and such accounts shall be established only when, in the opinion 
of the Administrator, such action is necessary to protect the fund 
or the interests of the members of the credit union." 
TITLE VIII—MISCELLANEOUS 
NATIONAL HOUSING GOAL 
SEC. 801. Title XVI of the Housing and Urban Development Act 
of 1968 is amended— 
(1) by inserting " ( a ) " before "The Congress" in the first sen-
tence of section 1601; 
42 use 1441a. 
(2) by adding at the end of section 1601 the following new 
subsections: 
"(b) The Congress further finds that policies designed to contribute 
to the achievement of the national housing goal have not directed 
sufficient attention and resources to the preservation of existing 
"hous-
ing and neighborhoods, that the deterioration and abandonment of 
housing for the Nation's lower income families has accelerated over 
the last decade, and that this acceleration has contributed to neigh-
borhood disintegration and has partially negated the progress toward 
achieving the national housing goal which has been made primarily 
through new housing construction. 
"(c) The Congress declares that if the national housing goal is 
to be achieved, a greater effort must be made to encourage the preserva-
tion of existing housing and neighborhoods through such measures 
as housing preservation, moderate rehabilitation, and improvements 
in housing management and maintenance, in conjunction with the 
provision of adequate municipal services. Such an effort should con-
centrate, to a greater extent than it has in the past, on housing and 
42 use 1441c. 
722 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
neighborhoods where deterioration is evident but has not yet become 
acute."; and 
(3) by redesignating clauses (3) through (6) of section 1603 as 
clauses (4) through (7), respectively, and by inserting after 
clause (2) the following new clause: 
"(3) provide an assessment of developments and progress dur-
ing the preceding fiscal year with respect to the preservation of 
deteriorating housing and neighborhoods and indicate the 
efforts to be undertaken in future years to encourage such 
action;". 
42 use 1440. 
STATE HOUSING FINANCE AND DEVELOPMENT AGENCIES 
SEC. 802. (a) It is the purpose of this section to encourage the for-
mation and effective operation of State housing finance agencies and 
State development agencies which have authority to finance, to assist 
in carrying out, or to carry out activities designed to (1) provide 
housing and related facilities through land acquisition, construction, 
or rehabilitation, for persons and families of low, moderate, and mid-
dle income, (2) promote the sound growth and development of neigh-
borhoods through the revitalization of slum and blighted areas, (3) 
increase and improve employment opportunities for the unemployed 
and underemployed through the development and redevelopment of 
industrial, manufacturing, and commercial facilities, or (4) implement 
the development aspects of State land use and preservation policies, 
including the advance acquisition of land where it is consistent with 
such policies. The Secretary of Housing and Urban Development shall 
encourage maximum participation by private and nonprofit developers 
in activities assisted under this section. 
(b) (1) A State housing finance or State development agency is 
eligible for assistance under this section only if the Secretary deter-
mines that it is fully empowered and has adequate authority to at 
least carry out or assist in carrying out the purposes specified in clause 
(1) of subsection (a). 
Definitions. 
(^2) for the puTpose of this section— 
(A) the term "State housing finance or State development 
agency" means any public body or agency, publicly sponsored 
corporation, or instrumentality of one or more States which is 
designated by the Governor (or Governors in the case of an inter-
state development agency) for purposes of this section; 
(B "
> the term "State" means any State of th*^. United States, the 
District of Columbia, the Commonwealth of Puerto Rico, or any 
territory or possession of the United States; and 
(C) the term "Secretary" means the Secretary of Housing and 
Urban Development. 
Guarantees. 
(c)(1) The SecTctary is authorized to guarantee, and enter into 
commitments to guarantee, the bonds, debentures, notes, and other 
obligations issued by State housing finance or State development agen-
cies to finance development activities as determined by him to be in 
furtherance of the purpose of clause (1) or (2) of subsection Ca), 
except; that obligations issued to finance activities solely in furtherance 
of the purpose of clause (1) of subsection (a) may be guaranteed only 
if the activities are in connection with the revitalization of slum or 
Ante, p. 633. 
blighted areas under title I of this Act or under any other program 
determined to be acceptable by the Secretary for this purpose. 
*^'"^"'^- 
(2) The Secretary is authorized to make, and to contract to make, 
grants to or on behalf of a State housing finance or State development 
agency to cover not to exceed 33i/s per centum of the interest payable 
on bonds, debentures, notes, and other obligations issued by such 
88 STAT.] 
PUBLIC LAW 93-383-AUG. 22, 1974 
723 
agency to finance development activities in furtherance of the pur-
poses of this section. 
(3) No obligation shall be guaranteed or otherwise assisted under 
this section unless the interest income thereon is subject to Federal taxa-
tion as provided in subsection (h) (2), except that use of guarantees 
provided for in this subsection shall not be made a condition to nor pre-
clude receipt of any other Federal assistance. 
(4) The full faith and credit of the United States is pledged to the 
payment of all guarantees made under this section with respect to 
principal, interest, and any redemption premiums. Any such guar-
antee made by the Secretary shall be conclusive evidence of the 
eligibility of the obligation involved for such guarantee, and the valid-
ity of any guarantee so made shall be incontestable in the hands of a 
holder of the guaranteed obligation, 
(5) The Secretary is authorized to establish and collect such fees and 
charges for and in connection with guarantees made under this section 
as he considers reasonable. 
(6) There are authorized to be appropriated such sums as may be 
necessary to make payments as provided for in contracts entered into 
by the Secretary under paragraph (2) of this subsection, and pay-
ments pursuant to such contracts shall not exceed $50,000,000 per 
annum prior to July 1, 1975, which maximum dollar amount shall be 
increased by $60,000,000 on July 1, 1975. The aggregate principal 
amount of the obligations which may be guaranteed under this section 
and outstanding at any one time shall not exceed $500,000,000. 
(d)) The Secretary shall take such steps as he considers reasonable 
to assure that bonds, debentures, notes, and other obligations which 
are guaranteed under subsection (c) will— 
(1) be issued only to investors approved by, or meeting require-
ments prescribed by, the Secretary, or, if an offering to the 
public is contemplated, be underwritten upon terms and condi-
tions approved by the Secretary; 
(2) bear interest at a rate satisfactory to the Secretary; 
(3) contain or be subject to repayment, maturity, and other 
provisions satisfactory to the Secretary; and 
(4) contain or be subject to provisions with respect to the pro-
tection of the security interests of the United States, including 
any provisions deemed appropriate by the Secretary relating to 
subroofation, liens, and releases of liens, payment of taxes, cost 
certification procedures, escrow or trusteeship requirements, or 
other matters. 
(e) (1) The Secretary is authorized to establish a revolving fund 
to provide for the timely payment of any liabilities incurred as a 
result of guarantees under subsection (c) and for the payment of obli-
gations issued to the Secretary of the Treasury under paragraph (2) 
of this subsection. Such revolving fund shall be comprised of (A) 
receipts from fees and charges; (B) recoveries under security, subroga-
tion, and other rights; (C) repayments, interest income, and any other 
receipts obtained in connection with guarantees made under subsection 
(c) ; (D) proceeds of the obligations issued to the Secretary of the 
Treasury pursuant to paragraph (2) of this subsection; and (E) such 
sums, which are hereby authorized to be appropriated, as may be 
required for such purposes. Money in the revolvina: fund not currently 
needed for the purpose of this section shall be kept on hand or on 
deposit, or invested in obligations of the United States or guaranteed 
thereby, or in obligations, participations, or other instruments which 
are lawful investments for fiduciary, trust, or public funds. 
(2) The Secretary may issue obligations to the Secretary of the 
Treasury in an amount sufficient to enable the Secretary to carry out 
his functions with respect to the guarantees authorized by subsection 
Appropriation. 
Revolving fund, 
establishment. 
Appropriation. 
31 use 774. 
Technical as 
sistance. 
724 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
(c). The obligations issued under this paragraph shall have such 
maturities and bear such rate or rates of interest as shall be determined 
by the Secretary of the Treasury. The Secretary of the Treasury is 
authorized and directed to purchase any obligations so issued, and for 
that purpose he is authorized to use as a public debt transaction the 
proceeds from the sale of any securities issued under the Second Lib-
erty Bond Act, and the purposes for which securities may be issued 
under that Act are extended to include purchases of the obligations 
hereunder. 
(3) Notwithstanding any other provision of law relating to the 
acquisition, handling, improvement, or disposal of real and other prop-
erty by the United States, the Secretary shall have power, for the 
protection of the interests of the fund authorized under this subsection, 
to pay out of such fund all expenses or charges in connection with the 
acquisition, handling, improvement, or disposal of any property, real 
or personal, acquired by him as a result of recoveries under security, 
subrogation, or other rights. 
(f) The Secretary is authorized to provide, either directly or by 
contract or other arrangements, technical assistance to State housing 
finance or State development agencies to assist them in connection with 
planning and carrying out development activities in furtherance of the 
purpose of this section. 
(g) All laborers and mechanics employed by contractors or sub-
contractors in housing or development activities assisted under this 
section shall be paid wages at rates not less than those prevailing on 
similar work in the locality as determined by the Secretary of Labor 
in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 
276a-276a-5) : Provided^ That this section shall apply to the construc-
tion of residential property only if such property is designed for 
residential use for eight or more families. No assistance shall be 
extended under this section with respect to any development activities 
without first obtaining adequate assurance that these labor standards 
will be maintained upon the work involved in such activities. The Sec-
retary of Labor shall have, with respect to the labor standards specified 
in this subsection, the authority and functions set forth in Reorganiza-
5 use app. 
^IQJ^ PI^J^ Numbered 14 of 1950 (64 Stat. 1267), and section 2 of the 
Act of June 13,1934 (40 U.S.C. 276c). 
(h) (1) In the performance of, and with respect to, the functions, 
powers, and duties rested in him by this section, the Secretary, in addi-
tion to any authority otherwise vested to him, shall— 
(A) have the power, notwithstanding any other provision of 
law, in connection with any guarantee under this section, whether 
before or after default, to provide by contract for the extinguish-
ment upon default of any redemption, equitable, legal, or other 
right, title, or interest of a State housing finance or State develop-
ment agency in any mortgage, deed, trust, or other instrument held 
by or on behalf of the Secretary for the protection of the security 
interests of the United States; and 
(B) have the power to foreclose on any property or commence 
any action to protect or enforce any right conferred upon him by 
law, contract, or other agreement, and bid foi* and purchase at 
any foreclosure or other sale any property in connection with 
which he has provided a guarantee pursuant to this section. In the 
event of any such acquisition, the Secretary may, notwithstanding 
any other provision of law relating to the acquisition, handling, 
or disposal of real property by the United States, complete, admin-
ister, remodel and convert, dispose of, lease, and otherwise deal 
with, such property. Notwithstanding any other provision of law, 
the Secretary shall also have power to pursue to final collection 
by way of compromise or otherwise all claims acquired by him in 
12 u s e 1464. 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
725 
connection with any security, subrogation, or other rights obtained 
by him in administering this section. 
(2) With respect to any obligation issued by a State housing finance 
or State development agency for which the issuer has elected to receive 
the benefits of the assistance provided under this section, the interest 
paid on such obligation and received by the purchaser thereof (or his 
successor in interest) shall be included in gross income for the pur-
poses of chapter 1 of the Internal Revenue Code of 54. 
26 use i et 
(i) (1) Section 24(a) (2) of the Federal Reserve Act (as amended ^^^' 
by section 711 of this Act) is amended by inserting the following 
^"t^- P- 716. 
before the period at the end thereof: ", or to obligations guaranteed 
under section 802 of the Housing and Community Development Act 
of 1974". 
(2) The twelfth paragraph of section 5(c) of the Homeowners' 
Loan Act of 1933 is amended by adding in the last sentence immedi-
ately after the words "or under part B of the Urban G'rowth and New 
Community Development Act of 1970" the following: "or under sec-
tion 802 of the Housmg and Community Development Act of 1974". 
NEW COMMUNITY PROGRAM AMENDMENTS 
SEC. 803. (a) (1) Part B of title VII of the Housing and Urban 
Development Act of 1970 is amended by striking out "Community 
^2 use 4511. 
Development Corporation" wherever it appears and inserting in lieu 
thereof "New Community Development Corporation". 
(2) The heading of section 729 of such Act is amended by inserting 
^'^ use 4532. 
"NEW" before "COMMUNITY". 
(b) Section 729(b) of such Act is amended— 
(1) by striking out "five members" in the matter preceding 
paragraph (1) and inserting in lieu thereof "seven members"; 
and 
(2) by striking out "three persons" in paragraph (3) and 
inserting in lieu thereof "five persons". 
(c) The last sentence of section 713(a) of such Act is amended by 
^'^ use 4514. 
striking out "in amounts" and all that follows and inserting in lieu 
thereof "in amounts equal to 30 per centum of the interest paid on such 
obligations." 
(d) Section 718(c) of such Act is amended by inserting before the 
''^ "^^ '*^^^-
period at the end thereof the following: ", or a project or portion of a 
project consisting of the purchase, renovation, or construction of 
facilities, the purchase of land, or the acquisition of equipment or 
works of art assisted by contracts or grants under section 5 of the 
National Foundation on the Arts and the Humanities Act of 1965". 
^° "^^ ^^''• 
(e) Section 711 (f) of such Act is amended— 
42 use 4512. 
(1) by striking out "sewage disposal" in the first and second 
sentences and inserting in lieu thereof "sewage or waste disposal"; 
(2) by inserting "community or neighborhood central heating 
or air-conditioning systems," after "storm drainage facilities," 
in the first sentence; and 
(3) by inserting ", a community or neighborhood central heat-
ing or air-conditioning system," after "disposal installation" in 
the second sentence. 
EXPANSION o r EXPERIMENTAL HOUSING ALLOWANCE PROGRAM 
SEC. 804. Section 504 of the Housing and Urban Development Act 
of 1970 is amended to read as follows: 
12 use 1701 z-3. 
38-194 O - 76 - 49 Pt. 1 
726 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
ii 
Time limita 
tion. 
HOUSING AIXOWANCES 
"SEC. 504. (a) The Secretary is authorized to undertake on an exper-
imental basis programs to demonstrate the feasibility of providing 
housing allowance payments to assist families in meeting rental or 
homeownership expenses. 
"(b) For the purpose of carrying out this section, the Secretary 
is authorized to make, and to contract to make, housing allowance pay-
ments to or on behalf of participating families. No housing allowance 
Appropriation. 
payments shall be made after July 1,1985. There are authorized to be 
appropriated such sums as may be necessary to carry out the provisions 
of this section, including such sums as may be necessary to make pay-
ments as provided for in contracts entered into under this section and 
such sums as may be necessary to cover administrative costs. The aggre-
gate amount of contracts to make housing allowance payments shall 
not exceed amounts approved in appropriation Acts, and payments 
pursuant to such contracts shall not exceed $40,000,000 per annum. 
After January 1, 1975, the Secretary shall not enter into contracts 
under the United States Housing Act of 1937 to carry out the purposes 
of this section. The Secretary may contract with public or private 
agencies for the performance of administrative functions in connection 
with the programs authorized by this section. 
"(c) The Secretary shall report to the Congress on his findings 
pursuant to this section not later than eighteen months after the enact-
ment of the Housing and Community Development Act of 1974." 
FEDERAL HOME LOAN MORTGAGE CORPORATION AMENDMENTS 
Ante, p. 653. 
12 use 1454. 
12 u s e 1701 
and note. 
SEC. 805. (a) Section 305(a) (1) of the Federal Home Loan Mort-
gage Corporation Act is amended— 
(1) by striking out ", and to hold" and inserting in lieu thereof 
the following: ". The Corporation may hold"; and 
(2) by striking out the period after "therein" and inserting 
in lieu thereof the following: ", and the servicing on any such 
mortgage may be performed by the seller or by a financial institu-
tion qualified as a seller under the provisions of the preceding 
sentence, or by a mortgagee approved by the Secretary of Housing 
and Urban Development for participation in any mortgage 
insurance program under the National Housing Act, with which 
institution or mortgagee the seller may contract." 
(b) Section 305(a) (2) of such Act is amended— 
(1) by striking out "75 per centum" each place it appears in 
the first sentence and inserting in lieu thereof "80 per centum"; 
(2) by striking out "private" in clause (C) of the first sentence; 
(3) by striking out "10 per centum" in the third sentence and 
inserting in lieu thereof "20 per centum"; and 
(4) by striking out "which are comparable to the limitations 
which would be applicable if the mortgage were insured by the 
Secretary of Housing and Urban Development under section 203 
17U.'''"" ' "'' 
(b) or 207 of the National Housing Act" in the fourth sentence 
and inserting in lieu thereof the following: ", but such limitations 
shall not exceed the limitations contained in the first proviso to 
the first sentence of section 5(c) of the Home Owners' Loan Act 
12 u s e 1464. 
^f ^933„^ 
12 use 24. 
^p^ ^-j^^ Section 5136 of the Revised Statutes is amended by inserting 
immediately after "Government National Mortgage Association" in 
paragraph Seventh thereof the following: ", or mortgages, obliga-
tions, or other securities which are or ever have been sold by the Fed-
eral Home Loan Mortgage Corporation pursuant to section 305 or 
"^''^' 
section 306 of the Federal Home Loan Mortgage Corporation Act". 
12 u s e 1709, 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
727 
12 use 1431. 
(2) Section 11 (h) of the Federal Home Loan Bank Act is amended 
hj inserting immediately after "Government National Mortgage Asso-
ciation" the following: ", in mortgages, obligations, or other securities 
which are or ever have been sold by the Federal Home Loan Mortgage 
Corporation pursuant to section 305 or section 306 of the Federal 
Home Loan Mortgage Corporation Act". 
^^'^2 use 1454, 
(3) Section 16 of the Federal Home Loan Bank Act is amended by 
1
2 use 1436. 
inserting immediately after "Government National Mortgage Associa-
tion" the following: ", in mortgages, obligations, or other securities 
which are or ever have been sold by the Federal Home Loan Mortgage 
Corporation pursuant to section 305 or section 306 of the Federal Home 
Loan Mortgage Corporation Act". 
(4) Section 5 (c) of the Home Owners' Loan Act of 1933 is amended 
^^ use i464. 
by inserting immediately after "Federal Home Loan Bank" in the first 
paragraph the following: ", or in mortgages, obligations, or other 
securities which are or ever have been sold by the Federal Home Loan 
Mortgage Corporation pursuant to section 305 or 306 of the Federal 
Home Loan Mortgage Corporation Act". 
(5) Section 107(8) (E) of the Federal Credit Union Act is amended 
»
2 use 1757. 
by inserting immediately after "Government National Mortgage 
Association" the following: "; or in mortgages, obligations, or other 
securities which are or ever have been sold oy the Federal Home Loan 
Mortgage Corporation pursuant to section 305 or section 306 of the 
Federal Home Loan Mortgage Corporation Act;". 
FEDERAL NATIONAL MORTGAGE ASSOCIATION AMENDMENTS 
12 use 1717. 
SEC. 806. (a) Section 302(a)(2) of the National Housing Act is 
amended— 
(1) by striking out "the effective date established pursuant to 
section 808 of the Housing and Urban Development Act of 1968" 
in the matter preceding subparagraph (A) and inserting in lieu 
thereof "September 1,1968"; and 
(2) by striking out "effective" in subparagraphs (A) and (B). 
(b) The third sentence of section 302(a)(2)(B) of such Act is 
amended— 
(1) by inserting "or the metropolitan area thereof" immedi-
ately after "District of Columbia"; 
(2) by inserting "jurisdiction and" immediately before "venue"; 
and 
(3) by striking out "resident thereof" and inserting in lieu 
thereof "District of Columbia corporation". 
(c) Section 302(b) (2) of such Act is amended by striking out "75 
per centum" each place it appears and inserting in lieu thereof "80 per 
centum". 
(d) Clause (C) of the second sentence of section 302(b)(2) of 
such Act is amended by striking out "private". 
(e) The fourth sentence of section 302(b)(2) of such Act is 
amended by striking out "10 per centum" and inserting in lieu thereof 
"20 per centum". 
(f) 
The last sentence of section 302(b)(2) 
of such Act is 
amended by striking out "which are comparable to the limitations 
which would be applicable if the mortgage were insured by the Sec-
retary of Housing and Urban Development under section 203(b) or 
207 of the National Housing Act" and inserting in lieu thereof the 
following: ", but such limitations shall not exceed the limitations 
contained in the first proviso of the first sentence of section 5(c) of 
the Home Owners Loan Act of 1933". 
(g) Section 303 (a) of such Act is amended— 
• /; ' 
1
2 use 1718. 
12 u s e 1718. 
Repeal. 
728 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
(1) by striking out all of the first sentence which follows 
"directors" and inserting in lieu thereof a period; and 
(2) by striking out everything after the second sentence, 
(h) Section 303(c) of such Act is amended— 
(1) by striking out "the effective date established pursuant 
to section 808 of the Housing and Urban Development Act of 
1968" in the fourth sentence and inserting in lieu thereof "Sep-
tember 1,1968,"; and 
(2) by striking out the proviso in the last sentence, 
(i) Subsections (d) and (e) of section 303 of such Act are repealed, 
(j) The last sentence of section 304(a) (1) of such Act is amended 
by striking out "section 502 of the Emergency Home Finance Act of 
1970" and inserting in lieu thereof "section 243 of the National Hous-
ing Act". 
(k) Except with respect to any person receiving an annuity on the 
date of the enactment of this Act, section 309(d) (2) of such Act is 
amended— 
(1) by striking out "the termination of the transitional period 
referred to in section 810(b) of the Housing and Urban Develop-
ment Act of 1968" and inserting in lieu thereof "January 31, 
1972,"; 
(2) by inserting "positions listed" immediately before "in sec-
tion 5312"; and 
(3) by inserting before the period at the end of the next to last 
sentence the following: ": Provided^ That with respect to any 
person whose employment is made subject to the civil service 
retirement law by section 806 of the Housing and Community 
Development Act of 1974, there shall not be considered for the 
purposes of such law that portion of his basic pay in any one 
year which exceeds the basic pay provided for positions listed 
m section 5316 of such title 5 on the last day of such year". 
,1^^^ \„ 
^ 
(^) Subsections (b) and (c) of section 810 of the Housing and 
" '"— 
Urban Development Act of 1968 are repealed. 
12 use 1719. 
12 use 1715Z-8. 
12 use 1723a 
He. 
12 u s e 1723a. 
12 
note, 
12 
use 
use 
1716b 
1717. 
LIMITATION ON DOLLAR AMOUNT OF GNMA-PCRCHASED MORTGAGES 
SEC. 807. Clause (3) of the proviso in the first sentence of section 
302(b) (1) of the National Housing Act is amended by striking out 
"$22,000" and inserting in lieu thereof the following: "$33,000 (or such 
higher amount not in excess of $38,000 as the Secretary may by regu-
lation specify in any geographical area where he finds that cost levels 
so require)". 
PROHIBITION AGAINST DISCRIMINATION ON ACCOUNT OF SEX IN EXTENSION 
OF MORTGAGE ASSISTANCE; FAIR HOUSING 
SEC. 808. (a) Title V of the National Housing Act is (as amended 
^^Ante. pp. 67 6, 
^^ sectious 301 and 305 of this Act) is amended by adding at the end 
thereof the following new section: 
" P R O H I B I T I O N A G A I N S T D I S C R I M I N A T I O N O N ACCOUNT OF SEX 
IN 
EXTENSION OF MORTGAGE ASSISTANCE 
12 use 1735f-5. 
"SEC. 527. No federally related mortgage loan, or Federal insur-
ance, guaranty, or other assistance in connection therewith (under this 
or any other Act), shall be denied to any person on account of sex; 
and every person engaged in making mortgage loans secured by resi-
dential real property shall consider without prejudice the combined 
income of both husband and wife for the purpose of extending mort-
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
729 
gage credit in the form of a federally related mortgage loan to a 
married couple or either member thereof. 
"(b) For purposes of subsection (a), the term 'federally related latld^morfgige^' 
mortgage loan'means any loan which— 
loan." 
" (1) is secured by residential real property designed principally 
for the occupancy of from one to four families; and 
" (2) (A) is made in whole or in part by any lender the deposits 
or accounts of which are insured by any agency of the Federal 
Government, or is made in whole or in part by any lender which 
is itself regulated by any agency of the Federal Government; or 
"(B) is made in whole or in part, or insured, guaranteed, sup-
plemented, or assisted in any way, by the Secretary of Housing and 
Urban Development or any other officer or agency of the Federal 
Government or under or in connection with a housing or urban 
development proq-ram administered by the Secretary of Hous-
ing and Urban Development or a housing or related program 
administered by any other such officer or agency; or 
"(C) is eligible for purchase by the Federal National Mort-
gage Association, the Government National Mortgage Associa-
tion, or the Federal Home Loan Mortgage Corporation, or from 
any financial institution from which it could be purchased by the 
Federal Home Loan Mortgage Corporation; or 
"(D) is made in whole or in part by any 'creditor', as defined 
in section 103(f) of the Consumer Credit Protection Act of 1968 
(15 U.S.C. 1602(f)), who makes or invests in residential real 
estate loans aggregating more than $1,000,000 per year." 
(b)(1) Subsections (a), (b), (c), (d), and (e) of section 804 of 
the Act entitled "An Act to prescribe penalties for certain acts of 
violence or intimidation, and for other purposes", approved April 11, 
1968 (42 U.S.C. 3604), are amended by inserting a comma and the 
word "sex" immediately after the word "religion" each time it appear-s. 
(2) Section 805 of such Act is amended by inserting a comma and 
'*^ ^^^ ^^°^-
the word "sex" immediately after the word "religion". 
(3) Section 806 of such Act is amended by inserting a comma and 
42 use 3606. 
the word "sex" immediately after the word "religion". 
(4) Subsection (a), paragraph (1) of subsection (b), and subsec-
tion (c) of section 901 of such Act are amended by inserting a comma 
^2 use 3631. 
a.nd the word "sex" immediately after the word "religion" each time 
it appears. 
NATIONAL INSTITUTE 
OF BUILDING 
SCIENCES 
SEC. 809. (a)(1) The Congress finds (A) that the lack of an 
1
2 uscnoij-::. 
authoritative national source to make findings and to advise both the 
public and private sectors of the economy with respect to the use of 
building science and technology in achieving nationally acceptable 
standards and other technical provision for use in Federal, State, and 
local housing and building regulations is an obstacle to efforts by and 
imposes severe burdens upon all those who procure, design, construct, 
use, operate, maintain, and retire physical facilities, and frequently 
results in the failure to take full advantage of new and useful devel-
opments in technology which could improve our living environment; 
(B) that the establishment of model buildings codes or of a single 
national building code will not completely resolve the problem because 
of the difficulty at all levels of government in updating their housing 
and building regulations to reflect new developments in technology, 
as well as the irregularities and inconsistencies which arise in applying 
such requirements to particular localities or special local conditions; 
(C) that the lack of uniform housing and building regulatory provi-
sions increases the costs of construction and thereby reduces the amount 
National Insti-
tute of Building 
Sciences, 
730 
PUBLIC LAW 93-383~AUG. 22, 1974 
[88 STAT. 
of housing and other community facilities which can be provided; 
and (D) that the existence of a single authoritative nationally recog-
nized institution to provide for the evaluation of new technology could 
facilitate introduction of such innovations and their acceptance at 
the Federal, State, and local levels. 
(2) The Congress further finds, however, that while an authoritative 
source of technical findings is needed, various private organizations 
and institutions, private industry, labor, and Federal and other gov-
ernmental agencies and entities are presently engaged in building 
research, technology development, testing, and evaluation, standards 
and model code development and promulgation, and information dis-
semination. These existing activities should be encouraged and these 
capabilities effectively utilized wherever possible and appropriate to 
the purposes of this section. 
(3) The Congress declares that an authoritative nongovernmental 
instrument needs to be created to address the problems and issues 
described in paragraph (1), that the creation of such an instrument 
should be initiated by the Government, with the advice and assistance 
of the National Academy of Sciences-National Academy of Engineer-
ing-National Research Council (hereinafter referred to as the "Acad-
emies-Research Council") and of the various sectors of the building 
community, including labor and management, technical experts in 
building science and technology, and the various levels of government. 
(b) (1) There is authorized to be established, for the purposes 
described in subsection (a) (3), an appropriate nonprofit, nongovern-
Estabiishment. nieutal instrument to be known as the National Institute of Building 
Sciences (hereinafter referred to as the "Institute"), which shall not 
be an agency or establishment of the United States Government. The 
Institute shall be subject to the provisions of this section and, to tho 
extent consistent with this section, to a charter of the Congress if such 
a charter is requested and issued or to the District of Columbia Non-
1001*^' ^"'^^ ^^ 
profit Corporation Act if that is deemed preferable. 
(2) The Academies-Research Council, along with other agencies and 
organizations which are knowledgeable in the field of building tech-
nology, shall advise and assist in (A) the establishment of the Insti-
tute; (B) the development of an organizational framework to 
encourage and provide for the maximum feasible participation of 
public and private scientific, technical, and financial organizations, 
institutions, and agencies now engaged in activities pertinent to the 
development, promulgation, and maintenance of performance criteria, 
standards, and other technical provisions for building codes and other 
regulations; and (C) the promulgation of appropriate organizational 
rules ard procedures including those for the selection and operation of 
a technical staff, such rules and procedures to be based upon the pri-
mary object of promoting the public interest and insuring that the 
widest possible variety of interests and experience essential to the 
functions of the Institute are represented in the Institute's operations. 
Recommendations of the Academies-Research Council shall be based 
upon consultations with and recommendations from various private 
organizations and institutions, labor, private industry, and govern-
mental agencies entities operating in the field, and the Consultative 
Council as provided for under subsection (c) (8). 
(3) Nothing in this section shall be construed as expressing the 
intent of the Congress that the Academies-Research Council itself be 
required to assume any function, or operation vested in the Institute by 
or under this section. 
Board o
f Direc- 
(c) (1) Thc lustitutc shall havc a Board of Directors (hereinafter 
referred to as the "Board") consisting of not less than fifteen nor more 
than twenty-one members, appointed by the President of the United 
tors. 
STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
731 
States by and with the advice and consent of the Senate. The Board 
shall be representative of the various segments of the building com-
munity, of the various regions of the country, and of the consumers 
who are or would be affected by actions taken in the exercise of the 
functions and responsibilities of the Institute, and shall include (A) 
representatives of the construction industry, including representatives 
of construction labor organizations, product manufacturers, and build-
ers, housing management experts, and experts in building standards, 
codes, and fire safety, and (B) members representative of the public 
interest in such numbers as may be necessary to assure that a majority 
of the members of the Board represent the public interest and that 
there is adequate consideration by the Institute of consumer interests 
in the exercise of its functions and responsibilities. Those representing 
the public interest on the Board shall include architects, professional 
engineers, officials of Federal, State, and local agencies, and repre-
sentatives of consumer organizations. Such members of the Board 
shall hold no financial interest or membership in, nor be employed 
by, or receive other compensation from, any company, association, or 
other group associated with the manufacture, distribution, installation, 
or maintenance of specialized building products, equipment, systems, 
subsystems, or other construction materials and techniques for which 
there are available substitutes. 
(2) The members of the initial Board shall serve as incorporators 
and shall take whatever actions are necessary to establish the Institute 
as provided for under subsection (b) (1). 
(3) The term of office of each member of the initial and succeeding 
Boards shall be three years; except that (A) any member appointed 
to fill a vacancy occurring prior to the expiration of the term for which 
his predecessor was appointed shall be appointed for the remainder of 
such term; and (B) the terms of office of members first taking office 
shall begin on the date of incorporation and shall expire, as designated 
at the time of their appointment, one-third at the end of one year, 
one-third at the end of two years, and one-third at the end of three 
years. No member shall be eligible to serve in excess of three consecu-
tive terms of three years each. Notwithstanding the preceding provi-
sions of this subsection, a member whose term has expired may serve 
until his successor has qualified. 
(4) Any vacancy in the initial and succeeding Boards shall not 
affect its power, but shall be filled in the manner in which the original 
appointments were made, or, after the first five years of operation, 
as provided for by the organizational rules and procedures of the 
Institute. 
(5) The President shall designate one of the members appointed to 
the initial Board as Chairman; thereafter, the members of the initial 
and succeeding Boards shall annually elect one of their number as 
Chairman. The members of the Board shall also elect one or more 
of their Members as Vice Chairman. Terms of the Chairman and Vice 
Chairman shall be for one year and no individual shall serve as Chair-
man or Vice Chairman for more than two consecutive terms. 
(6) The members of the initial or succeeding Boards shall not, by 
reason of such membership, be deemed to be employees of the United penses 
States Government. They shall, while attending meetings of the Board 
or while engaged in duties related to such meetings or in other 
activities of the Board pursuant to this section, be entitled to receive 
compensation at the rate of $100 per day including traveltime, and 
while away from their homes or regular places of business they may be 
allowed travel expenses, including per diem in lieu of subsistence, equal 
to that authorized under section 5703 of title 5, United States Code, 
for persons in the Government service employed intermittently. 
Term of office. 
Vacancies. 
Chairman. 
Compensation 
and travel ex-
732 
PUBLIC LAW 93-383~AUG. 22, 1974 
[88 STAT. 
(7) The Institute shall have a president and such other executive 
officers and employees as may be appointed by the Board at rates of 
compensation fixed by the Board. No such executive officer or employee 
may receive any salary or other compensation from any source other 
than the Institute during the period of his employment by the 
Institute. 
^^^""^I'ltative 
(8) The Institute shall establish, with the advice and assistance of 
°Est^^biishment. the Aoademics-Research Council and other agencies and organizations 
which are knowledgeable in the field of building technology, a Con-
sultative Council, membership in which shall be available to repre-
sentatives of all appropriate private trade, professional, and labor 
organizations, private and public standards, code, and testing bodies, 
public regulatory agencies, and consumer groups, so as to insure a 
direct line of communication between such groups and the Institute 
and a vehicle for representative hearings on matters before the 
Institute. 
(d) (1) The Institute shall have no power to issue any shares of 
stock, or to declare or pay any dividends. 
(2) No part of the income or assets of the Institute shall inure to 
the benefit of any director, officer, employee, or other individual 
except as salary or reasonable compensation for services. 
(3) The Institute shall not contribute to or otherwise support any 
political party or candidate for elective public office. 
(e) (1) The Institute shall exercise its functions and responsibilities 
in four general areas, relating to building regulations, as follows: 
(A) Development, promulgation, and maintenance of nation-
ally recognized performance criteria, standards, and other 
technical provisions for maintenance of life, safety, health, and 
public welfare suitable for adoption by building regulating 
jurisdictions and agencies, including test methods and other 
evaluative techniques relating to building systems, subsystems, 
components, products, and materials with due regard for consumer 
problems. 
(B) Evaluation and prequalification of existing and new build-
ing technology in accordance with subparagraph (A). 
fC) Conduct of needed investigations in direct support of 
subparagraphs (A) and (B). 
(D) Assembly, storage, and dissemination of technical data 
and other information directly related to subparagraphs (A), 
(B^,and(C). 
(2) The Institute in exorcising its functions and responsibilities 
described in paragraph CI) shall assign and deletrato. to the maximum 
extent possible, responsibility for conducting each of the needed activi-
ties described in paragraph (1) to one or more of the private organiza-
tions, institutions, agencies, and Federal and other governmental 
entities with a capacity to exercise or contribute to the exercise of such 
responsibility, monitor the performance achieved through assignment 
and delegation, and, when deemed necessary, reassign and delegate 
such responsibility, 
(3) The Institute in exercising its functions and responsibilities 
under paragraphs (1) and (2) shall (A) give particular attention to 
the development of methods for encouraging all sectors of the economy 
to cooperate with the Institute and to accept and use its technical find-
ings, and to accept and use the nationally recognized performance cri-
teria, standards, and other technical provisions developed for use in 
Federal, State, and local building codes and other regulations which 
result from the program of the Institute; (B) seek to assure that its 
actions are coordinated with related requirements which are imposed 
in connection with community find environmental development gener-
ally ; and (C) consult with the Department of Justice and other agen-
88 STAT.] 
PUBLIC LAW 93-383-AUG. 22, 1974 
733 
cies of government to the extent necessary to insure that the national 
interest is protected and promoted in the exercise of its functions and 
responsibilities. 
(f) (1) The Institute is authorized to accept contracts and grants 
from Federal, State, and local governmental agencies and other enti-
ties, and grants and donations from private organizations, institutions, 
and individuals. 
(2) The Institute may, in accordance with rates and schedules estab-
lished with guidance as provided under subsection (b) (2), establish 
fees and other charges for services provided by the Institute or under 
its authorization. 
(3) Amounts received by the Institute under this section shall be in 
addition to any amounts which may be appropriated to provide its 
initial operating capital under subsection (h). 
(g) (1) Every department, agency, and establishment of the Federal 
Government, in carrying out any building or construction, or any 
building- or construction-related programs, which involves direct 
expenditures, and in developing technical requirements for any such 
building or construction, shall be encouraged to accept the technical 
findings of the Institute, or any nationally recognized performance 
criteria, standards, and other technical provisions for building regula-
tions brought about by the Institute, which may be applicable. 
(2) All projects and programs involving Federal assistance in the 
form of loans, grants, guarantees, insurance, or technical aid, or in any 
other form, shall be encouraged to accept, use, and comply with any of 
the technical findings of the Institute, or any nationally recognized 
performance criteria, standards, and other technical provisions for 
building codes and other regulations brought about by the Institute, 
which may be applicable to the purposes for which the assistance is to 
be used. 
(3) Every department, agency, and establishment of the Federal 
Government having responsibility for building or construction, or for 
building- or construction-related programs, is authorized and encour-
aged to request authorization and appropriations for grants to the 
Institute for its general support, and is authorized to contract with 
and accept contracts from the Institute for specific services where 
deemed appropriate by the responsible Federal official involved. 
(4) The Institute shall establish and carry on a specific and con-
tinuing program of cooperation with the States and their political 
subdivisions designed to encourage their acceptance and its technical 
findings and of nationally recognized performance criteria, standards, 
and other technical provisions for building regulations brought about 
by the Institute. Such program shall include (A) efforts to encourage 
any changes in existing State and local law to utilize or embody such 
findings and regulatory provisions; and (B) assistance to States in 
the development of inservice training programs for building officials, 
and in the establishment of fully staffed and qualified State technical 
agencies to advise local officials on questions of technical interpretation. 
(h) There is authorized to be appropriated to the Institute not to 
exceed $5,000,000 for the fiscal year 1975, and $5,000,000 for the fiscal 
year 1976 (with each appropriation to be available until expended), to 
provide the Institute with initial capital adequate for the exercise of 
its functions and responsibilities during such years; and thereafter the 
Institute shall be 
financially 
self-sustaining through the means 
described in subsection (f). 
(i) The Institute shall submit an annual report for the preceding 
fiscal year to the President for transmittal to the Congress within 
sixty days of its receipt. The report shall include a comprehensive and 
detailed report of the Institute's operations, activities, financial con-
Contracts and 
grants. 
Appropriation. 
Annual report 
to President. 
734 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
dition, and accomplishments under this section and may include such 
recommendations as the Institute deems appropriate. 
12 u s e 1706e. 
URBAN HOMESTEADING 
SEC. 810. (a) Notwithstanding any other provision of law, the Secre-
tary of Housing and Urban Development (hereinafter referred to as 
the "Secretary") is authorized to transfer without payment to a unit 
of general local government or a State, or a public agency designated 
by a unit of general local government or a State, any real property— 
(1) which is improved by a one- to four-family residence; 
(2) to which the Secretary holds title; 
(3) which is not occupied; 
(4) which is requested by such unit. State, or agency for use 
in an urban homestead program; and 
(5) which the Secretary determines is suitable for use in an 
urban homestead program which meets the requirements of sub-
section (b). In determining the suitability of such property for 
use in an urban homestead program, the Secretary shall consider— 
(A) the difficulties and delays w^hich would be involved in 
the sale of the property; 
(B) the value of any repairs and improvements required 
by the program; 
(C) the benefits to the community and the reduced 
administrative costs to the Federal Government which would 
accrue from the expedited occupancy of the unoccupied prop-
erty; and 
(D) the possible financial loss to the Federal Government 
which may result from the transfer of the property without 
payment. 
(b) For the purposes of subsections (a) and (c), the Secretary shall 
approve an urban homestead program carried out by a unit of general 
local government or a State or a public agency designated by a unit 
of general local government or a State, which provides for— 
(1) the conditional conveyance of unoccupied residential prop-
erty by the responsible administrative entity to an individual or a 
family without any substantial consideration; 
(2) an equitable procedure for selecting the recipients of the 
unoccupied residential property, giving special consideration to 
the recipients' need for housing and capacity to make or cause 
to be made the repairs and improvements required under para-
graph (3) (C) of this subsection; 
(3) an agreement whereby the individual or family to whom 
such property is conveyed agrees to— 
(A) occupy such property as a principal residence for a 
period of not less than three years; 
(B) make repairs required to meet minimum health and 
safety standards for occupancy prior to occupying the prop-
erty ;' 
(C) make such repairs and improvements to the property 
as may be necessary to meet applicable local standards for 
decent, safe, and sanitary housing within eighteen months 
after occupying the property; and 
(D) permit reasonable periodic inspections at reasonable 
times by employees of the unit of general local government 
or State or the public agency designated by the unit of gen-
eral local government or State for the purpose of determin-
ing compliance with the agreement; 
(4) the revocation of such conveyance upon any material breach 
of the agreement referred to in paragraph (3) ; 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
735 
(5) the conveyance from the unit of general local government 
or State or the public agency designated hj the unit of general 
local government or State of fee simple title to such property 
without consideration upon compliance with the agreement; and 
(6) a coordinated approach toward neighborhood improvement 
through the homestead program and the upgrading of commu-
nity services and facilities. 
The Secretary may approve such otlier programs as he determines to 
reasonably fulfill these criteria. 
(c) The Secretary is authorized to tnter into agreements with imits 
of general local government or St riles or public agencies designated by 
units of general local government or State to provide technical assist-
ance for the administration of urban homestead programs which meet 
the requirements of subsection (b) and to individuals and families 
who are participants in such programs. 
(d) The Secretary is authorized to issue such rules and regulations lauon^s^ ^"'^ ''^^"' 
as may be necessary to carry out his functions under this section. 
(e) The Secretary shall cuJiduct a continuing evaluation of programs eva^uitr^n"^ 
carried out pursuant to this section and, beginning with the third year 
commencing; after the date of enactment of this section, shall transmit 
Report, trans-
, 
,T 
r^ 
• 
, 
, 
• 
• 
j > i - 
T 
m i t t a l to Con-
to the Congress an annuHl report contammg a summary or nis evalua- gress. 
tion of such programs and his recommendations for future conduct 
of such programs. 
(f) In order to facilitate planning for purposes of this section, the 
Secretary shall, upon request of a unit of general local government or 
a State or a public agency designated by a unit of general local 
government or a State, provide a listing of all unoccupied one- to four-
family residences to which the Secretary holds title and which are 
located within the geographic jurisdiction of such unit, State, or 
agency. 
(g) To rtimburse the housing loan funds for properties transferred 
Appropriation. 
pursuant to this section, and to carry out the provisions of subsection 
(c), there are authorized to be appropriated not to exceed $5,000,000 
ff the fiscal year 1975, and not to exceed $5,000,000 for the fiscal year 
Ul76. Any amounts so appropriated shall remain available until 
expended. 
COUNSELING AND TECHNICAL ASSISTANCE 
SEC. 811. (a) Section 106 of the Housing and Urban Development 
Act of 1968 is amended by rewriting the heading to read as follows: 
"Technical Assistance, Counseling to Tenants and Homeowners, and 
Loans to Sponsors of Low- and moderate-income Housing". 
(b) (1) Section 106(a) (1) (iii) of such Act is amended to read as 
follows: 
"(iii) counseling and advice to tenants and homeowners with 
respect to property maintenance, financial management, and such 
other matters as may be appropriate to assist them in improving 
their housing conditions and in meeting the responsibilities of 
tenancy or homeownership; and". 
(2) Section 106(a) of such Act is amended by redesignating para-
graph (2) as paragraph (3) and inserting immediately after para-
graph (1) the following new paragraph: 
"(2) The Secretary shall provide the services described in clause 
(iii) of paragraph (1) for homeowners assisted under section 235 of 
the National Housing Act. For purposes of this paragraph and clause 
(iii) of paragraph (1), the Secretary may provide the services 
described in such clause directly or may enter into contracts with, 
make grants to, and provide other types of assistance to private or 
public organizations with special competence and knowledge in coun-
seling low- and moderate-income families to provide such services." 
12 
use 1701x 
12 
use 1715Z. 
736 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
Ante, p. 735. 
((.) SectioH 106(a) (1) of such Act is further amended by adding 
at the end thereof the following new subparagraph: 
"(iv) the provision of technical assistance to communities, 
particularly smaller communities, to assist such communities in 
planning, developing, and administering Community Develop-
ment Programs pursuant to title I of the Housing and Community 
Ante. p. 633. 
Development Act of 1974." 
(d) Section 106(a) (3) of such Act (as redesignated by subsection 
(b) (2) of this section) is amended by striking out "not to exceed 
$5,000,000" and inserting in lieu thereof "such sums as may be 
necessary". 
(e) Section 106(b)(1) of such Act is amended by inserting "or 
public housing agencies" immediately after "nonprofit organizations". 
(f) Section 106(b)(2) of such Act is amended by inserting "or 
public housing agency" immediately after "nonprofit organization". 
INTERSTATE 
LAND 
SALES 
SEC. 812. (a) Section 1402 of the Housing and Urban Development 
1
5 use 1701. 
^^^^ ^^ ^fjgg .g ajnended— 
(1) by inserting after "land" where it first appears in para-
graph (3) the following: ", located in any State or in a foreign 
country,"; and 
(2) by inserting before the semicolon at the end of paragraph 
(7) the following: "or between anv foreign country and any 
State". 
1
5 use 1702. 
^1^^ Section 1403(a) of such Act is amended by striking out "or" 
at the end of paragraph (9), by striking out the period at the end of 
paragraph (10) and inserting in lieu thereof "; or", and by adding 
after paragraph (10) the following new paragraph: 
saie^orYea\*e! 
" (11) the Sale or lease of real estate which is zoned by the appro-
priate governmental authority for industrial or commercial 
development, 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 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 business, and is 
not affiliated with the seller or agent; and 
"(E) a policy of title insurance or 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 writ-
ing by such purchaser or the lessee prior to recordation of 
the instrument of conveyance or execution of the lease, but 
(i) nothing hei'ein shall be construed as requiring the recorda-
^^^^^'"- 
tion of a lease, and (ii) any purchaser or lessee may waive, in 
writing in a separate document, the requirement of this sub-
paragraph that a policy of title insurance or title opinion 
be issued in connection with the transaction." 
Effective date 
15 
note. 
49 
use 
use 
1703 
1602. 
88 STAT. ] 
PUBLIC LAW 93-383-AUG. 22, 1974 
737 
(c)(1) The second sentence of section 1404(b) of such Act is 
is use 1703. 
amended— 
(A) by striking out "within forty-eight hours" where it first 
appears and inserting in lieu thereof "until midnight of the third 
business day following the consummation of the transaction"; 
and 
(B) by striking out all after "provide" and inserting in lieu 
thereof a period. 
(2) The amendments made by paragraph (1) shall be effective sixty 
days after the date of the enactment of this Act. 
MASS TRANSPORTATION 
SEC. 813. (a) Section 3 of the Urban Mass Transportation Act of 
1964 is amended by adding at the end thereof the following new sub-
section : 
"(f) No Federal financial assistance under this Act may be pro-
vided for the purchase of buses unless the applicant or any public body 
receiving such assistance for the purchase of buses, or any publicly 
owned operator receiving such assistance, shall as a condition of such 
assistance enter into an agreement with the Secretary that such public 
body, or any operator of mass transportation for such public body, 
will not engage in charter bus operations outside the urban area within 
which it provides regularly scheduled mass transportation service, 
except as provided in the agreement authorized by this subsection. 
Such agreement shall provide for fair and equitable arrangements, 
appropriate in the judgment of the Secretary, to assure that the finan-
cial assistance granted under this Act will not enable public bodies and 
publicly and privately owned operators for public bodies to foreclose 
private operators from the intercity charter bus industry where such 
private operators are willing and able to provide such service. In addi-
tion to any other remedies specified in the agreement, the Secretary 
shall have the authority to bar a grantee or operator from the receipt 
of further financial assistance for mass transportation facilities and 
equipment where he determines that there has been a continuing pat-
tern of violations of the terms of agreement. Upon receiving a com-
plaint regarding an alleged violation, the Secretary shall investigate 
and shall determine whether a violation has occurred. Upon determina-
tion that a violation has occurred, he shall take appropriate action to 
correct the violation under the terms and conditions of the agreement.". 
(b) Section 164(a) of the Federal-Aid Highway Act of 1973 is 
^9 use i602a. 
amended— 
(1) by inserting "or" before "(2)" in the first sentence; 
(2) by striking out "or (3) the Urban Mass Transportation 
Act of 1964," in the first sentence; and 
(3) by striking out all after the word "operations" in the first 
sentence and all of the second sentence, and inserting in lieu 
thereof "outside of the urban area (or areas) within which it pro-
vides regularly scheduled mass transportation service, except as 
provided in an agreement authorized and required by section 3 (f) 
of the Urban Mass Transportation Act of 1964, which section 
shall apply to Federal financial assistance for the purchase of 
buses under the provisions of title 23, United States Code, referred 
^^ ^^^ ^°^ ^' 
to in clauses (1) and (2) of this sentence." 
^^'^' 
(c) The Secretary shall amend any agreements entered into pur- ^^\l ^^'^ i602a 
suant to section 164(a) of the Federal-Aid Highway Act of 1973, to 
conform to the requirements of the amendments made by this section. 
The effective date of such conformed agreements shall be the effective 
date of the original agreements entered into pursuant to such section 
164(a). 
738 
PUBLIC LAW 93.383-AUG. 22, 1974 
[88 STAT. 
12 u s e I V O l z - l . 
SOLAR ENERGY 
SEC. 814. Title V of the Housing and Urban Development Act of 
1970 is amended by adding at the end thereof the following new 
section: 
"SOLAR ENERGY 
u u
°
s
"
c iToi°"5" 
"^^<^' ^^^' (^) I^ carrying out activities under section 501, the Sec-
retary may, after consultation with the National Science Foundation, 
undertake demonstrations to determine the economic and technical 
feasibilitjr of utilizing solar energy for heating or cooling residential 
housing (including demonstrations of new housing design or structure 
involving the use of solar energy). Demonstrations carried out under 
this section should involve both single family and multifamily hous-
ing located in areas having distinguishable climatic characteristics in 
urban as well as rural environments. To carry out the purpose of this 
section the Secretary is authorized— 
" (1) to enter into contracts with, to make grants to, and to pro-
vide other types of assistance to individuals and entities with spe-
cial competence and knowledge to contribute to the planning, 
design, development, and operation of such housing; 
" (2) to utilize the contract, loan, or mortgage insurance author-
ity of any federally assisted housing program in the actual plan-
ning, development, and occupancy of such housing; and 
" (3) to set aside any development, construction, design, or occu-
pancy requirements for the purpose of any demonstration under 
this section if he determines that such requirements inhibit such 
demonstration, 
'"(b) The Secretary shall include in any demonstration under this 
section an evaluation of the demonstration to cover the full experience 
involved in all stages of the demonstration. 
feT"*^*'° ^°"' 
"(c) The Secretary shall transmit to the Congress not later than 
6 months following the close of any year in which he carries out a dem-
onstration under this section a full report on such demonstration. Such 
report may include an evaluation of the economic and technological 
feasibility of the widespread application of solar energy to residential 
housing.*' 
ADDITIONAL RESEARCH AUTHORITY 
SEC. 815. Title V of the Housing and Urban Development Act 
of 1970 (as amended by section 814 of this Act) is amended by adding 
at the end thereof the following new section : 
Evaluation. 
gress 
12 u s e 1701Z-6. 
"ADDITIONAL RESEARCH 
AUTHORITY 
"SEC. 507. (a) In carrying out activities under section 501, the Sec-
retary may undertake special demonstrations to determine the housing 
design, the housing structure, and the housing-related facilities, and 
amenities most effective or appropriate to meet the needs of groups with 
special housing needs including the elderly, the handicapped, the dis-
placed, single individuals, broken families, and large households. For 
this purpose, the Secretary is authorized to enter into contracts with, 
to make grants to, and to ))rovide other tj^pes of assistance to individ-
uals and entities with special competence and knowledge to contribute 
to the planning, development, design, and management of sucli 
housing. 
"(b) In carrying out his functions under this section, the Secretary 
shall give preferential attention to demonstrations which in his judg-
ment involve areas of housing user needs most neglected in past and 
current research and demonstration efforts. 
88 
STAT.] 
PUBLIC LAW 93-383-AUG. 22, 1974 
'39 
"(c) The Secretary is authorized to undertake demonstrations 
involving the actual planning, development, and occupancy of housing 
utilizing the contract and loan authority of any federally assisted 
housing program. He is also authorized to set aside any development, 
construction, design, and occupancy requirements, for the purposes of 
these demonstrations, if in his judgment they inhibit the testing of 
housing designed to meet the special housing needs. 
"(d) In carrying out this section, the Secretary shall include, as 
part of any demonstration, an evaluation of the demonstration to cover 
the full experience involved in planning, development, and occupancy. 
"(e) In addition to any other contract or loan authority which the 
Secretary may utilize under subsection (c), not more than $10,000,000 
from amounts approved in appropriation Acts shall be available for 
research under this section." 
Evaluation. 
FLOOD INSURANCE 
PROGRAM 
SEC. 816. (a) Chapter I I I of title X I I I of the Housing and Urban 
Development Act of 1968 is amended by adding at the end thereof the 
following new section: 
42 u s e 4101. 
"NOTICE OF FLOOD HAZARDS 
"SEC. 1364. Each Federal instrumentality responsible for the super-
vision, approval, regulation, or insuring of banks, savings and loan 
associations, or similar institutions shall by regulation require such 
institutions, as a condition of making, increasing, extending, or renew-
ing (after the expiration of thirty days following the date of the 
enactment of this section) any loan secured by improved real estate or 
a mobile home located or to be located in an area that has been iden-
tified by the Secretary under this title or Public Law 93-234 as an area 
having special flood hazards, to notify the purchaser or lessee (or 
obtain satisfactory assurances that the seller or lessor has notified the 
purchaser or lessee) of such special flood hazards, in writing, a reason-
able period in advance of the signing of the purchase agreement, lease, 
or other documents involved in the transaction." 
(b) Section 1307 of such Act is amended by adding at the end thereof 
the following new subsection: 
"(e) Notwithstanding any other provision of law, any community 
that has made adequate progress, acceptable to the Secretary, on the 
construction of a flood protection system which will afford flood pro-
tection for the one-hundred year frequency flood as determined by the 
Secretary, shall be eligible for flood insurance under this title (if and 
to the extent it is eligible for such insurance under the other provi-
sions of this title) at premium rates not exceeding those which would 
be applicable under this section if such flood protection system had 
been completed. The Secretary shall find that adequate progress on 
the construction of a flood protection system as required herein has 
been only if (1) 100 percent of the project cost of the system has been 
authorized, (2) at least 60 percent of the project cost of the system has 
been appropriated, (3) at least 50 percent of the project cost of the 
system has been expended, and (4) the system is at least 50 percent 
completed." 
42 u s e 4104a. 
42 u s e 4002 
note 
42 u s e 4014. 
Flood insur-
nce, eligibility. 
LIMITATION ON WITHHOLDING OR CONDITIONING OF ASSISTANCE 
SEC. 817. Assistance provided for in this Act, the National Housing 
Act, the United States Housing Act of 1937, the Housing Act of 1949, 
^^ use 1701. 
the Demonstration Cities and Metropolitan Development Act of 1966, 
42 usc'u"i" 
and the Housing and Urban Development Acts of 1965, 1968, 1969, "°t«' 3301 note 
740 
PUBLIC LAW 93-383-AUG. 22, 1974 
[88 STAT. 
^12 use i749aa ^j^^ -^g^^Q shall not be withheld or made subject to conditions or pref-
i72o' note, noTs' crcnce by reason of the tax-exempt status of bonds or other obligations 
"°te. 
issued or to be issued to provide financing for use in connection with 
such assistance, except where otherwise expressly provided or author-
ized by law. 
ADDITIONAL ASSISTANT SECRETARIES OF HOUSING AND URBAN 
DEVELOPMENT 
42 u s e 3533. 
1
2 use noil-i. 
SEC. 818. (a) Section 4 of the Department of Housing and Urban 
Development Act (Public Law 89-174, 79 Stat. 667) is amended— 
(1) by striking out "six" in the first sentence of subsection (a) 
and inserting in lieu thereof "eight"; 
(2) by striking out subsection (b); and 
(3) by redesignating subsections (c) and (d) as subsections (b) 
and (c), respectively, 
(b) Section 5316 of title 5, United States Code, is amended by strik 
ing out paragraph (122). 
(c) Paragraph (87) of section 5315 of title 5, United States Code, is 
amended by striking out "(6)" and inserting in lieu thereof "(8)". 
MORTGAGE PROCEEDS FRAUDULENTLY MISAPPROPRIATED BY 
MORTGAGOR 
SEC. 819. The Secretary of Housing and Urban Development shall 
take action to secure the payment of any deficiency after foreclosure 
on a mortgage insured or assisted under Federal law where the Secre-
tary has reason to believe that mortgage proceeds have been fraudu-
lently misappropriated by the mortgagor. 
NEIGHBORHOOD DEVELOPMENT 
PROGRAM 
SEC. 820. Notwithstanding the provisions of section 133(b) of the 
Housing Act of 1949 or of any other law, local expenditures made in 
connection with the Broad and Front Street Garage in Trenton, New 
Jersey, shall, to the extent otherwise eMgible, be counted as a local 
grant-in-aid to the first two action years of the Trenton Neighborhood 
Development Program (N.J. A-1) in accordance with the provisions 
of title I of the Housing Act of 1949. 
CONDOMINIUM 
AND COOPERATIVE 
STUDY 
SEC. 821. The Secretary of Housing and Urban Development is 
authorized and directed to conduct a full and complete investigation 
and study, and report to Congress not later than one year after the 
date of enactment of this Act, with respect to condominiums and 
cooperatives, and the problems, difficulties, and abuses or potential 
abuses applicable to condominium and cooporative housing. 
DIRECT FINANCING 
STUDY 
SEC. 822. The Secretary of Housing and Urban Development and 
the Secretary of the Treasury shall study the feasibility of financing 
the programs authorized under section 236 of the National Housing 
Act and section 802 of this Act through various financing methods, 
including direct loans from the Federal Financing Bank, with a view 
to determining whether there is any such method that would result 
in net savings to the Federal Government (after taking into account 
Report to Con- 
^j^^ direct aud indirect effects of such method). The Secretary of 
Housing and Urban Development and the Secretary of the Treasury 
42 u s e 1469b. 
42 u s e 1450. 
42 u s e 3532 
note. 
Report to eon-
gress. 
12 u s e 1715Z-1 
note. 
gress 
STAT.] 
PUBLIC LA\V 93-385-AUG. 23, 1974 
741 
shall transmit to the Congress a report on the study required by this 
section not later than one year after the date of enactment of this Act 
Approved August 22, 1974. 
Public Law 93-384 
JOINT RESOLUTION 
To authorize the erection of a monument to the dead of the First Infantry 
Division, United States Forces in Vietnam. 
August 23, 1974 
[S. J. Res. 66] 
Resolved hy the Senate and House of Representatives 
of the United 
States of America in Congress assemhled^ That the Society of the First 
Infantry Division—First Division Memorial Committee is authorized 
to erect (at no cost to the United States or the District of Columbia) 
a monument to the dead of the First Infantry Division, United States 
Forces in Vietnam, on the public grounds of the United States in the 
District of Columbia previously set aside for memorial purposes of the 
First Infantry Division, adjacent to the monument to the dead of the 
First Infantry Division, American Expeditionary Forces in World 
War I, and adjacent to the monument to the dead of the First Infantry 
Division, United States Forces in World War II. 
SEC. 2. The design and plans for such monument shall be subject to 
the approval of the Secretary of the Interior, the National Commission 
of Fine Arts, and the National Capital Planning Commission. 
SEC. 3. The Secretary of the Interior shall be responsible for the 
maintenance and care of any such monument, in accordance with the 
provisions of the Act entitled "An Act to establish a National Park 
Service, and for other purposes", approved August 25, 1916, and the 
Act entitled "An Act to provide for the preservation of historic Ameri-
can sites, buildings, objects, and antiquities of national significance, 
and for other purposes", approved August 21,1935. 
Approved August 23, 1974. 
First Infantry 
Division, United 
States Forces in 
Vietnam. 
Monument. 
Design. 
Maintenance, 
16 use 1. 
16 u s e 461. 
Public Law 93-385 
AN ACT 
To amend the Public Health Service Act to extend through fiscal year 1975 
the scholarship program for the National Health Service Corps and the loan 
program for health professions students. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled, That section 225 (i) 
of the Public Health Service Act is amended by inserting before the 
period ", and $40,000,000 for the fiscal year ending June 30,1975". 
SEC. 2. (a) Section 742(a) of the Public Health Service Act is 
amended by striking out "and" after "1973," and by inserting after 
"1974" the following: ", and $60,000,000 for the fiscal year ending 
June 30,1975". 
(b) Section 740(b) (4) of such Act is amended by striking out 
"1974" and inserting in lieu thereof "1975". 
SEC. 3. (a) Section 824 of the Public Health Service Act is 
amended— 
(1) by striking out "and" after "1973,"; and 
(2) by inserting after "1974," the first time it appears the fol-
lowing: "and $35,000,000 for the fiscal year ending June 30,1975,". 
(b) Section 822(b)(4) of such Act is amended by striking out 
"1974" and inserting in lieu thereof "1975". 
Approved August 23, 1974. 
August 23, 1974 
[S.3782] 
Health serv-
vices. 
Scholarship and 
student loan pro-
grams, extension. 
42 u s e 234. 
42 u s e 294b. 
42 u s e 294. 
42 u s e 297c. 
42 u s e 297a. 
38-194 O - 76 - 50 Pt. 1