Housing and Community Development Act of 1974

Summary

Housing and Community Development Act - Chapter I: Housing Loan Insurance and Mortgage Credit Assistance Title I: General Authority - Revised National Housing Act - Provides for the consolidation and revision of laws relating to housing loan insurance and mortgage credit assistance. Sets forth the definitions of terms used in this Act. Provides that to be eligible for insurance under this Act: (1) a mortgate or loan shall be made and held by a mortgagee or lender approved by the Secretary of Housing and Urban Development; and (2) the mortgage transaction shall be determined by the Secretary to be an insurable risk, with specified exceptions. Empowers the Secretary with general insurance authority to adjust mortgage and interest rate ceilings. Authorizes the Secretary to provide compensation for structural defects in mortgaged homes. Requires specified water and sewer facilities to use technically suitable structural materials prior to mortgage insurance or guarantee approval under this Act. Allocates sums appropriated for home ownership assistance payments and multifamily rental assistance payments, including 75 percent to metropolitan areas. Provides for the development of experimental and demonstration programs. Authorizes the Secretary to furnish counseling to families assisted under this and the National Housing Acts. Title II: Insurance Funds, Premiums and Charges - Provides that the General Insurance Fund, created by the National Housing Act, shall be used as a revolving fund for carrying out the Secretary's duties under that Act and specified obligations under this Act. Enumerates the circumstances under which the Special Risk Insurance Fund and the Cooperative Management Housing Insurance Fund shall be used by the Secretary. Authorizes the Secretary to fix insurance premiums for the insurance of mortgages and loans under this Act. Provides that where the mortgagor is a serviceman specified rules apply as to the mortgage insurance premiums. Empowers the Secretary to charge and collect from the mortgagee or lender reasonable amounts for the processing of applications, property appraisal and other services. Title III: Insurance for Property Improvement, Historic Structure Preservation, and Mobile Home Loans and for Rehabilitation Loan Funds - Authorizes the Secretary to insure financial institutions against losses from making, advancing credit, or purchasing property improvement loans, historic structure preservation loans, and mobile home loans, and mobile home lot loans. Provides that the property improvement loan shall be for financing alterations, repairs, and improvements to existing structures, and the building of new structures, including the restoration of improvements which have been damaged by a natural catastrophe. Specifies the qualifying criteria for mobile home loans and historic structure preservation loans and the terms for such loans. Provides that the Secretary may declare ineligible for financing any item, alteration, improvement, or class thereof, which he determines would not substantially protect or improve the basic livability of properties to be improved by the financing. Limits the insurance granted by the Secretary to any financial institution under this Act to either: (1) 10 percent of the total amount of the loans, advances of credit, and purchases; or (2) 90 percent of the amount of loss on any individual loan, advance of credit, or purchase. Title IV: Home Mortgage Credit Assistance - Authorizes the Secretary to insure a home mortgage (including open-end advances) meeting the requirements of this title. Provides that where the mortgage involves a one-family unit in a condominium, the Secretary shall establish requirements for the protection of the consumer. Provides for maximum mortgage principal obligations of up to 85 percent for newly constructed dwellings meeting specified requirements and for a mortgagor who is not the occupant of the property. Requires the seller, builder, or other person designated, to deliver to the mortgagor (prior to the completion of the sale) a written statement setting forth the amount of the appraised value of the property, as determined by the Secretary. Requires, where the mortgage involves a dwelling approved for insurance prior to construction, the seller to deliver a warranty that the dwelling is constructed in substantial conformity with the plans and specifications on which the Secretary based his valuation. Authorizes the Secretary to insure a home mortgage executed to refinance existing indebtedness and to finance any needed repairs and improvements. Provides that, for the purpose of assisting lower income families in acquiring or maintaining homeownership, the Secretary is authorized to make periodic assistance payments on behalf of such homeowners through payments to mortgagees holding mortgages which meet the requirements of, and are insured under, this title. Authorizes appropriations for the purpose of carrying out the provisions of this title. States that no assistance payments shall be made with respect to any mortgage securing a loan to finance the rehabilitation of any owner-occupied property, unless: (1) the property is located in a neighborhood which is sufficiently stable to support long-term values; (2) the property, without rehabilitation, does not conform to public standards for decent, safe, and sanitary housing; and (3) the improvements are reasonably required to provide decent, safe and sanitary housing. Defines "lower income families" to mean those families whose incomes do not exceed 80 percent of the median income for the area, as determined by the Secretary. Excludes from calculation of such income specified amounts, including income of students and the first $300 of secondary income by a minor member of the family. Title V: Project Mortgage Credit Assistance - Authorizes the Secretary to insure a mortgage (including advances) which covers property involving a multifamily housing project to be executed by a mortgagor approved by the Secretary. Provides that the mortgage may involve the financing of new construction, the rehabilitation of an existing structure, or the purchase or refinancing of an existing project. Describes the principal obligation percentages for each such type of mortgage. Authorizes the Secretary to make periodic assistance payments on behalf of the owner of a multifamily housing project. Authorizes appropriations for such purposes. Authorizes the Secretary to insure a mortgage upon a multifamily housing project to be occupied primarily by those who are lower income tenants at the time of initial occupancy. Provides for mortgage insurance for health facilities and land development. Sets forth cost certification and labor standards requirements to be followed in carrying out the provisions of this title. Title VI: Guarantee of State Housing Bonds - Empowers the Secretary to guarantee bonds issued by State housing finance agencies approved under this title. Prescribes the criteria for approval of such State housing financing agencies. Title VII: Insurance Claims - Sets forth the procedures for home mortgage insurance claim settlement. Provides that the value of the mortgage shall be determined by specified calculations made on the original principal obligation. Allows the Secretary to permit forebearance of payments where the default on the home mortgage was beyond the control of the mortgagor. Permits the Secretary to consent to the assignment of the defaulted mortgage to avoid foreclosure. Prescribes the procedures for: (1) project mortgage insurance claim settlement; (2) modifications in terms of project mortgages; and (3) settlement of insurance claims with debentures. Title VIII: Miscellaneous - Empowers the Secretary with specified authorizations for dealing with and disposing of property. Makes conforming and technical amendments to specified acts. Chapter II: Low-Income Housing Assistance - Declares it to be the policy of the United States to remedy the unsanitary housing conditions and the shortage of decent housing for low-income families. Sets forth the definitions of terms used in this Act, including "low-income housing", and "low-income families". Authorizes the Secretary to make loans to public housing agencies to finance or refinance the development of low-income housing projects. Empowers the Secretary to make annual contributions to public housing agencies to assist in maintaining the low-income character of their projects. Outlines the procedures and amounts of such contributions. Permits the Secretary to include in any contract for loans such covenants as he deems necessary to insure the low-income character of the project involved, including the condition requiring a playground. Sets forth additional provisions required in every contract for annual contributions. Directs the Secretary to encourage public housing agencies to develop housing to meet the needs of displaced, elderly and handicapped families. Directs public housing agencies to provide, to the extent possible, low-income housing in private accommodations. Provides for additional annual contributions by the Secretary to public housing agencies for the operation of low-income housing projects. Makes technical and conforming amendments to the National Bank Act and the Lanham Act. Chapter III: Community Development - Community Development Assistance Act - Sets forth Congressional findings. Provides that the program of Federal assistance provided in this Act is designed to support community development activities which are directed toward specific objectives, including: (a) eliminating slums and preventing deterioration of property and facilities; (b) achieving more rational utilization of land; and (c) expanding and improving the quality of community services. Sets forth definitions of terms used in this chapter. Sets forth specified activities which further the purposes of the Act including: (1) acquisition of property which is blighted or inappropriately developed, appropriate for rehabilitation or conservation, necessary for preservation, beautification, conservation or future development, to be used for public works, facilities or other public purposes; (2) disposition of property at its fair value; (3) clearance or demolition of buildings; (4) acquisition, construction or reconstruction of community facilities; and (5) designing and interim financing for the construction of certain public facilities. Authorizes the Secretary to incur obligations in an amount not exceeding $6.1 billion as approved in an appropriation act, beginning July 1, 1974 for these purposes. Provides that authority to liquidate obligations would be limited to $2.8 billion prior to July 1, 1975, and $6.1 billion prior to July 1, 1976, with sums appropriated remaining available until expended. Requires the Secretary to submit requests for increased authorizations and any needed adjustments in the schedule for liquidation of obligations in a timely manner. Requires that 75 percent of the appropriated funds for community development be allocated to metropolitan areas. Prescribes the procedure for application and review of applications by community development agencies for financial assistance. Authorizes the Secretary to enter into contracts to make grants to community development agencies for activities to be carried out within a two year period. Provides that no grant may exceed 90 percent of any agency's total net program cost. Provides that where the program involves rehabilitation grants or relocation payments, the grant may be increased to include either the full cost of making rehabilitation grants, or the full cost up to $25,000 for each displaced person for relocation. States that non-Federal contributions to the program cost must be in the form of cash grants, with specified exceptions. Provides interim financing for the undertaking of community development programs. Provides that the Secretary in carrying out the provisions of this Act shall consult with other Federal agencies which administer grant-in-aid programs. Authorizes the Secretary to provide technical assistance to smaller communities in developing community programs. Sets forth minimum wage requirements for laborers and mechanics performing construction under this Act. Provides for transitional termination of specified existing programs under other enumerated acts. Chapter IV: Comprehensive Planning - Empowers the Secretary, under the Housing Act of 1954, to make grants to States, local governments, cities, metropolitan counties, areawide organizations in metropolitan areas, Indians, and other governmental units or agencies related to fulfilling the purposes of this Act. Expands provisions of the Housing Act to encompass the goals and objectives of this Act. Calls for coordination of Federal aids in metropolitan areas under the Demonstration Cities and Metropolitan Development Act. Chapter V: Rural Housing Assistance - Extends the Rural Housing Program to include Guam. Directs the Secretary to establish escrow accounts for taxes, insurance, and other expenses. Makes conforming amendments to the Housing Act of 1949 relating to: (1) rehabilitation loans and grants; (2) research and study programs; (3) veteran's preference; (4) utilization of county committees; (5) assistance authorizations; (6) maximum loan amount for rental housing; (7) subsidy and assistance payments for low-income families; (8) mutual and self-help housing; and (9) site loans. Authorizes the Secretary to make loans for programs of technical and supervisory assistance for low-income families, and loans to low or moderate income families for purchase of condominiums located in rural areas. Transfers items held by the Agricultural Credit Insurance Fund to the Rural Housing Insurance Fund. Chapter VI: Mobile Home Construction and Safety Standards - National Mobile Home Construction and Safety Standards Act - Sets forth the purpose of this Act and definitions of terms used in the Act. Directs the Secretary of Housing and Urban Development to establish Federal mobile home construction and safety standards. Provides that in prescribing standards under this Act, the Secretary shall: (1) consider relevant available mobile home safety data; (2) consult with such State or interstate agencies (including legislative committees); (3) consider whether any such proposed standard is reasonable for the particular type of mobile home for which it is prescribed; (4) consider whether any such standard increases the cost of the mobile home substantially beyond the value of expected benefits to the public; and (5) consider the extent to which any such standard will contribute to carrying out the purpose of this chapter. Directs the Secretary to establish a National Mobile Home Advisory Council. Specifies the composition of such Council and their rates of compensation. Provides for judicial review of any order regarding Federal mobile home construction and safety standards. States that whenever any manufacturer is opposed to action taken by the Secretary, such manufacturer shall submit cost and other information for evaluation by the Secretary. Prescribes the procedures for such submission and evaluation. Directs the Secretary to conduct research, testing, development and training necessary to carry out the purposes of this chapter. Authorizes the Secretary to advise and assist Federal agencies, State agencies, and other interested public and private agencies in the planning and development of mobile home safety standards. Sets forth the activities which constitute prohibited actions under this Act. Prescribes a civil penalty not to exceed $1,000 for each violation. Provides that if the Secretrary or a court determines that any mobile home does not conform to Federal standards, the manufacturer shall: (1) repurchase the mobile home; or (2) furnish the equipment, at his own expense, to bring the mobile home into conformance with such standards. Authorizes the Secretary to conduct inspections necessary to enforce the standards promulgated under this chapter. Enumerates additional powers of the Secretary. Requires each manufacturer of mobile homes to submit the building plans of every model to the Secretary for technical evaluation and approval. Requires every manufacturer to furnish notification of any defect which relates to mobile home construction or safety, to the purchase of such mobile homes, within reasonable time after discovery of the defect. Sets forth additional notice and record requirements to be complied with by mobile home manufacturers, including the furnishing of a one-year warranty to the first purchaser of every mobile home. Establishes the National Mobile Home Administration to perform such duties as are delegated to it by the Secretary. Provides for States to assume responsibility for enforcement of mobile home standards, if they so desire. Details the procedures for establishment of acceptable State plans, approval by the Secretary, and grants to the States. Requires the Secretary to submit an annual report to Congress. Specifies the content of such report. Authorizes the appropriation of such sums as are necessary to carry out the provisions of this chapter. Chapter VII: Housing Cooperative Financing Association - Housing Cooperative Financing Association Act - Creates a body corporate known as the Housing Cooperative Financing Association, in the Department of Housing and Urban Development, with the authority to make and service loans, issue obligations, and exercise other enumerated powers. Vests the powers and duties of the Association in the Secretary, initially, and management in the board of five directors. States that the Association may issue capital stock and prescribes the procedures for such issuance. Outlines the obligations of the Association. Enumerates the character of loans which may be authorized by the Association, including: (1) to finance the construction of new housing projects; and (2) to finance property acquisition for conversion to cooperative ownership. Prescribes the eligibility requirements required from each cooperative obtaining a loan pursuant to this chapter, and the regulatory requirements imposed. Chapter VIII: Miscellaneous - Establishes, under the Housing and Urban Development Act of 1968, a national housing goal. Provides for the expansion of the experimental housing allowance program. Requires the Secretary and the Secretary of the Treasury to study the feasibility of direct financing. Creates a trust fund to be known as the National Elderly and Handicapped Housing Loan Fund. Authorizes the Secretary to issue notes and other obligations aggregating $100,000,000 for the use of such Fund, and authorizes additional appropriations to the Fund. Establishes an Office of Security in the Department of Housing and Urban Development to serve as a clearinghouse for information relating to the physical security of Federally insured or assisted housing projects and to provide Federal assistance for improved security of such projects. Empowers the Secretary to make grants to demonstrate the feasibility of providing assistance for the purpose of increasing housing locational opportunities for lower-income families. Authorizes appropriations of $20,000,000 for fiscal year 1975 for such purposes. Authorizes the Secretary, after consultation with the National Science Foundation, to undertake demonstrations to determine the feasibility of utilizing solar energy in residential housing. Authorizes appropriations of $2,500,000 for fiscal year 1975 for such purposes. Expands discrimination clauses to include fair housing with respect to sex. Authorizes to be established a National Institute of Building Sciences, not as an agency of the United States Government, and governed by a board of directors. States that the Institute shall establish a Consultative Council. Directs the Institute to exercise responsibilities in four general areas relating to building regulations, including development of performance standards, evaluation of building technology, conduct of investigations, and dissemination of data and information. Authorizes appropriations to the Institute of $5,000,000 for fiscal year 1975, and $5,000,000 for fiscal year 1976, after which it shall be self-sustaining. Authorizes the Secretary to: (1) transfer, without payment, real property for use in an urban homestead program; and (2) make loans to finance the rehabilitation of property by owners and tenants. Authorizes appropriations for such rehabilitation loans. Provides for a transitional extension of the FHA insurance authority. Provides for advances, under the Home Owners' Loan Act, from a State chartered central reserve institution, including mortgage finance agencies. Requires, under the Urban Mass Transportation Act, that no Federal financial assistance may be provided for the purchase of buses unless an agreement is entered into whereby the mass transportation operator shall not engage in charter bus operations outside the urban area within which it provides regularly scheduled service.

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3 official files

• Public Law (PDF)

  Public Law · EN · 23 August 1974

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• Public Law

  summary · EN · 22 August 1974

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• Introduced in Senate

  summary · EN · 27 February 1974

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