Housing and Community Development Act of 1987

Summary

Housing and Community Development Act of 1987 - Title I: Program Extensions and Amendments - Subtitle A: General Extension of Programs - Amends the National Housing Act to make authority permanent for: (1) title I financial institution insurance for housing renovation and modernization; (2) general mortgage insurance; (3) low and moderate income and displaced families mortgage insurance; (4) mortgage co-insurance including rental rehabilitation and development projects; (5) graduated payment and indexed mortgage insurance; (6) mortgage insurance for armed forces civilian employees and defense housing for impacted areas; (7) mortgage insurance for land development; and (8) mortgage insurance for medical and dental group practice facilities. Amends the National Flood Insurance Act of 1968 to extend authority for national flood insurance, including emergency implementation and flood-risk zones through September 30, 1989. Limits premium increases through such period to not more than a prorated annual amount of ten percent. Amends the Housing and Urban Rural Recovery Act of 1983 to extend indefinitely the maximum interest rate limitation on loans for housing and related facilities for elderly or handicapped families. Extends the Home Mortgage Disclosure Act of 1975 permanently. Amends the Housing Act of 1964 to extend urban rehabilitation loan authority through September 30, 1989. Amends the Housing Act of 1949 to extend Farmers Home Administration authority through September 30, 1989, for: (1) insured loans for rental and cooperative housing and related facilities for elderly persons and families in rural areas; and (2) mutual and self-help housing grant and loan authority. Subtitle B: Mortgage Insurance and Secondary Mortgage Programs - Amends the National Housing Act to set premium charge limits for Federal Housing Administration (FHA) mortgage insurance. Requires the Secretary of Housing and Urban Development to certify to the Congress 90 days prior to any fee increase that such increase is solely for the purpose of meeting anticipated insurance claims and administrative expenses. Raises FHA multi-family mortgage limits. Permits the refinancing of graduated payment mortgages for the total outstanding balance if refinancing would result in a lower monthly mortgage payment. Makes nursing homes, intermediate care facilities, and board and care homes eligible for health care facility refinancing mortgage insurance. Makes public nursing homes, intermediate care facilities, and board and care homes eligible for mortgage insurance. Provides, with regard to hospital mortgage insurance eligibility, that in States not having a certifying agency the required certification of need and feasibility may be provided through a State-conducted or commissioned independent study. Authorizes city and State housing authorities to use unexpended low-income rental and cooperative housing funds for interest and rental assistance payments if so agreed to by the housing authorities and the Department of Housing and Urban Development (HUD). Increases FHA authority to insure adjustable rate single-family mortgages. Prohibits the imposition of user fees on Government-sponored secondary mortgage market agencies. Amends the Federal National Mortgage Association Charter Act to permit the elimination of cumulative voting in the election of Federal National Mortgage Association (Fannie Mae) board members. Directs the Secretary to take appropriate administrative actions to reduce losses on mortgage insurance programs. Authorizes the Secretary to require mortgagors and lenders to report the taxpayer identification numbers of National Housing Act borrowers. Requires mortgagors with high default rates to submit reports, including proposed corrective steps, to the Secretary. Amends the National Housing Act to transfer mortgage insurance programs for Hawaiian homelands and Indian lands from the Mutual Mortgage Insurance Fund to the General Insurance Fund of the Treasury. Permits Native Hawaiians to transfer FHA-financed property to their children or surviving spouses who do not meet the legal definition of native Hawaiian. Provides applicants for National Housing Act property improvement or manufactured home loan insurance with the option, until January 1, 1988, of complying with either the regulations in effect prior to January 15, 1986, or the regulations published on October 25, 1985. Directs the Secretary to establish a demonstration program of home equity conversion mortgage insurance for elderly homeowners. Authorizes the Secretary to insure any home equity conversion mortgage eligible for insurance and to make insurance commitments to the extent the Secretary determines such mortgages: (1) have promise for improving the financial status or otherwise meeting the special needs of elderly homeowners; (2) will include appropriate risk safeguards for mortgagors; and (3) have acceptance potential in the private mortgage market. Sets forth provisions regarding: (1) eligibility; (2) disclosure; and (3) mortgagor information. Prohibits mortgages without a prior commitment from being insured after September 30, 1991. Limits: (1) the total number of insured mortgages to 2,500; and (2) insurance coverage to maximum one-family residence amounts under such Act. Prohibits the Secretary from insuring a home equity mortgage unless the mortgage defers repayment until the homeowner's death, sale of the house, or other occurrence as specified by the Secretary. Requires the Secretary to: (1) submit an interim program report to the Congress by September 30, 1989; (2) submit a preliminary program evaluation to the Congress by March 30, 1992, and biennial program reports thereafter; and (3) issue proposed implementing regulations. Amends the Federal National Mortgage Association Charter Act to permanently extend the authority of Fannie Mae to purchase residential second mortgages. Amends the Federal Home Loan Mortgage Corporation Act to permanently extend the authority of the Federal Home Loan Mortgage Corporation (Freddie Mac) to purchase residential second mortgages. Amends specified provisions of the National Housing Act regarding negotiated interest rates, including certain provisions regarding nursing home fire safety equipment. Amends the definition of veteran, for purposes of mortgage insurance and rehabilitation and neighborhood conservation housing insurance, to require that persons who enlisted in the armed forces after September 7, 1980, or who entered active duty after October 16, 1981, have their eligibility determined in accordance with specified Federal law. Repeals specified coinsurance provisions. Amends the Housing and Community Development Act of 1977 to repeal the requirement that HUD prepare annual prototype housing costs. States that any new credit authority provided by this Act shall be effective only to the extent that such amounts are approved in appropriation Acts. Subtitle C: Community and Neighborhood Development and Conservation Programs - Amends the Housing and Community Development Act of 1974 to extend community development block grant entitlement authority for certain metropolitan city and urban county areas through September 30, 1989. Reduces FY 1991 grants by 50 percent to any such entity that loses its entitlement classification, with the remaining 50 percent allocated to the small city community development program (for which such entity would be eligible). Gives cities becoming classified as metropolitan cities the option to defer such classification if they elect to have their population included in an urban county. Stipulates for FY 1988 that a city may elect not to retain its metropolitan city classification. Includes within the definition of urban county a county that has: (1) a combined population in excess of 175,000; (2) more than 50 percent of its housing units unsewered; and (3) a specified sole source acquifer. Extends through FY 1989 the transition classification of a designated urban county whose decreased population no longer entitles it to such designation. Defines the entire nonmetropolitan area of a State as the designated area for making community development block grant (CDBG) income determinations. Considers the counties of Kauai, Maui, and Hawaii in the State of Hawaii as cities for urban development action grant (UDAG) purposes. Authorizes UDAG appropriations through FY 1989. Modifies UDAG selection criteria so that: (1) 65 percent of such grants are awarded on the basis of distress, impact, and project quality and (2) 35 percent on project quality alone. Awards bonus points for certain cities that have not received a grant since October 15, 1984. Requires at least two rounds of UDAG grant competitions annually. Permits a city to retain any repaid UDAG funds. Requires the city to submit a plan to the Secretary for such funds' reuse. Prohibits the Secretary from discriminating against applications on the basis of the type of activity involved. Requires the Comptroller General to: (1) report to the Congress within six months, and every three years thereafter, regarding such selection criteria and eligibility standards; and (2) report to the Congress within three months of the final FY 1987 grant competition regarding targeting of grants, geographic distribution, funding levels, and economic development. Prohibits relocating a business from one UDAG area to another unless the Secretary determines that no adverse effect will result. Authorizes appropriations through FY 1989 for: (1) CDBG; and (2) urban homesteading. Extends the local property demonstration program through FY 1989. Extends the evaluation reporting date to December 31, 1989. Gives homesteading priority to lower income families. Amends the Housing Act of 1964 to prohibit risk premiums or loan fees under the rehabilitation loan program. Amends the Neighborhood Reinvestment Corporation Act to authorize appropriations for the Neighborhood Reinvestment Corporation through FY 1989. Modifies the composition of the Neighborhood Reinvestment Corporation Board to permit designated members rather than only the Chairmen of the Home Loan Bank Board, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the National Credit Union Administration, to be on such Board. Amends the Housing and Urban-Rural Recovery Act of 1983 to authorize appropriations for the neighborhood development demonstration program through FY 1989. Amends the Housing and Community Development Act of 1974 to prohibit a State from deducting administrative expenses from distribution amounts in entitlement areas in excess of the sum of $100,000 ($102,000 under current law) plus 50 percent of a State's administrative expenses above $100,000. Authorizes the City of Hartford, Connecticut, to retain and use certain land disposition proceeds from the financially closed-out Sheldon Charter Oak, Section A Urban Renewal Project (No. Conn. R. 77). Subtitle D: Miscellaneous Program Amendment - Amends the National Flood Insurance Act to authorize appropriations for flood insurance programs through FY 1989. Directs the Secretary and the Secretary of Agriculture to: (1) collect social and ethnic data on the participants of their respective housing and related programs; and (2) include such information in their annual reports to the Congress. Amends the Solar Energy and Energy Conservation Bank Act to authorize appropriations for residential and commercial solar energy improvements through FY 1989. Amends the Housing and Urban Development Act of 1970 to authorize appropriations for housing research and project development through FY 1989. Title II: Housing Assistance - Subtitle A: Programs Under United States Housing Act of 1937 - Amends the United States Housing Act of 1937 to authorize FY 1988 and 1989 budget authority for lower income housing. Makes recaptured program funds for public housing development, comprehensive improvement assistance, or Indian housing available for reuse. Requires: (1) 15-year terms for annual contributions contracts for (section 8) existing dwellings; (2) administrative and preliminary fees to be calculated according to the method in effect prior to January 1, 1985; and (3) an annual adjustment of fair market rents as of October 1 of each year. Authorizes appropriations through FY 1989 for public housing authority (PHA) operating subsidies. Prohibits the Secretary from totally restricting public housing admissions to very-low income families. Provides a displacement exemption for low-income families. Authorizes appropriations through FY 1989 for the rental rehabilitation and development program. Extends eligibility to housing which is owned by State or locally chartered neighborhood nonprofit organizations. Sets rehabilitation assistance caps at $7,500 per unit for units with up to two bedrooms and $8,500 per unit for units with three or more bedrooms (current cap is $5,000 per unit). Gives grantees the option of basing their assisted housing rent on recent median area income or on such income at the time of the grantee's project application. Authorizes the Secretary to require HUD applicants or participants to provide social security or employer identification numbers in order to verify eligibility. Amends the Social Security Act to provide HUD with access to State wage or unemployment compensation records. Limits the use of such information to housing eligibility purposes. Sets forth applicant and participant protections. Imposes a criminal penalty for the wrongful request or disclosure of such information. Amends the United States Housing Act of 1937 to permit public housing residents to form resident management corporations. Requires such corporations to obtain fidelity bonding and insurance and have their records audited annually. Authorizes such projects to receive comprehensive improvement assistance. Provides for: (1) retention of excess revenues; and (2) resident management technical assistance and training. Limits financial assistance to: (1) $100,000 for any particular project; and (2) $1,500,000 for the total program. Provides lower income public housing residents with the opportunity to purchase project dwelling units through a qualifying resident management corporation. Requires, as conditions for resident ownership, that: (1) a resident management corporation be formed; (2) the corporation has entered into a contract with the PHA; and (3) the corporation has demonstrated its managerial ability for at least three years. Authorizes the Secretary to provide comprehensive improvement assistance to a project undergoing resident ownership activities. Sets forth purchase conditions, including: (1) PHA public hearings; (2) safety and livability determinations; and (3) PHA certification of sold unit replacement if justified by local low-income housing needs. Sets forth resale conditions, including: (1) permitted resale only to the resident management corporation, PHA, or other eligible low-income family; and (2) recapture of profit for any unit resold within five years. Requires that sale or recapture proceeds be used only to increase the number of available units. Permits PHA financing if no other source is available. Sets the interest rate at not less than 70 percent of the conventional mortgage rate. Requires HUD to continue to pay annual assistance to the project. Eliminates operating subsidies for a purchased building. Sets forth the following protection for nonpurchasing families: (1) eviction prohibition; (2) tenants' rights; (3) and rental and relocation assistance. Directs the Secretary to: (1) provide PHAs with the necessary financial assistance to carry out such ownership program; and (2) report annually to the Congress. States that after September 30, 1987, the Secretary shall reserve public housing funds only if: (1) funds are needed to complete units whose funding is already obligated; (2) at least 85 percent of the units meet, or will meet, HUD standards; (3) development is needed to replace disposed units or to comply with court orders or the Secretary's directions; or (4) the locality has demand for family housing that the PHA plans to meet with the development of not more than 100 units. Permits up to 20 percent of public housing development funds to be used for redesign or reconstruction of existing projects. Sets forth the findings of the Congress regarding the problems of substandard public housing and the need to reform the comprehensive grant program in order to provide stable assistance and capital and managerial improvements. Directs the Secretary, within one year of enactment of this Act, to: (1) complete the HUD public housing modernization study, and any other related studies; and (2) submit to the Congress specified funding allocation determinations. Revises the definition of "disability" under such Act. Subtitle B: Other Housing Assistance Programs - Prohibits subsidized project owners from discriminating against a certificate or voucher holder solely because of the status of such prospective tenant as the holder of a certificate or voucher. Amends the Housing Act of 1959 to authorize appropriations through FY 1989 for housing for the elderly or the handicapped. Bases interest rates on the most recently issued 30-year Treasury obligations. Requires that at least 15 percent of annual appropriations for such elderly or handicapped housing be allocated for the nonelderly handicapped. Directs the Secretary to establish new and more appropriate housing and related service options for the nonelderly handicapped. Replaces the existing subsidy system with 240-month contract to cover actual costs not covered by project income. Provides for the continued commitment of certain funds for the home ownership program. Amends the Congregate Housing Services Act of 1978 to authorize appropriations for congregate services through FY 1989. Directs the Secretary to contract for a report due to the Congress by September 30, 1989, which will: (1) document the number of elderly persons living in federally assisted housing at risk of institutionalization; (2) compare alternative congregate services delivery systems; and (3) assess the availability of Federal, State, and local financial support. Amends the Housing and Urban Development Act of 1965, with regard to rent supplement projects, to repeal the requirement that HUD furnish a project owner with certain renter information. Requires owners to give housing preference to persons in substandard housing. (Current law requires that such persons be given priority.) Includes among such preferred applicants persons who are paying more than 50 percent of their income for rent. Title III: Rural Housing - Amends the Housing Act of 1949 to extend rural housing insurance and guaranty authority through FY 1989. (Sets forth specified limits on such authority for FY 1988 and 1989.) Authorizes FY 1988 and 1989 appropriations for: (1) rehabilitation grants; (2) structural rehabilitation; (3) the meeting of obligations issued under the rural housing insurance fund; (4) farm labor housing; (5) self-help housing; (6) housing preservation; and (7) administrative costs. Authorizes the Secretary, as approved in FY 1988 and 1989 appropriations, to enter into rental assistance payment contracts. Extends the 10,000-20,000 population rural area classification date to September 30, 1989. Requires the Department of Agriculture to make or insure loans for rural manufactured homes for the same time period applicable under section 2 of the National Housing Act. Defines "very-low income families or persons" for rural housing loan purposes to mean those families or persons with incomes less than the appropriate levels established under the United States Housing Act of 1937, or those families and persons with incomes that do not exceed 50 percent of the median income for all nonmetropolitan areas in the State. Permits public and private tax-exempt nonprofit sponsors to treat loan packaging costs as eligible development costs. Directs the Secretary to develop tax and insurance escrow procedures for assisted homebuyers. Title IV: Fair Housing Demonstration - Authorizes the Secretary to make grants or enter into contracts through FY 1989 with State or local governments or private or public entities to formulate and carry out programs to prevent or eliminate discriminatory housing practices. Directs the Secretary to: (1) notify the appropriate congressional committees before entering into a grant or contract agreement; (2) submit a quarterly program summary to such committees; (3) issue implementing regulations; and (4) establish private enforcement guidelines. Authorizes FY 1988 and 1989 appropriations. Title V: Nehemiah Housing Opportunity Grants - Authorizes the Secretary to make grants to nonprofit organizations for noninterest bearing second mortgages for new or rehabilitated homes. Sets maximum loans at $15,000. Requires at least a ten percent downpayment. Prohibits leasing. Makes such loans repayable to the Secretary upon the sale, lease, or transfer of the property. Requires an eligible family to: (1) have an income not in excess of the greater of 115 percent of the local metropolitan median income for a family of four, or the national median income for a family of four; and (2) not have owned a home within three years. Sets forth criteria for: (1) grant selection; and (2) assistance conditions. Establishes in the Treasury the Nehemiah Housing Opportunity Fund. Requires an annual report to the Congress. Authorizes FY 1988 and 1989 appropriations.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 12 March 1987

   Reported

   Committee on Banking ordered to be reported an original measure.

   Source: Committee

2. 24 March 1987

   Introduced

   Introduced in Senate

   Source: IntroReferral

3. 24 March 1987

   Calendars

   Placed on Senate Legislative Calendar under General Orders. Calendar No. 68.

   Source: Calendars

4. 24 March 1987

   Reported

   Committee on Banking. Original measure reported to Senate by Senator Proxmire. With written report No. 100-21.

   Source: Committee

5. 24 March 1987

   Reported

   Committee on Banking. Original measure reported to Senate by Senator Proxmire. With written report No. 100-21.

   Source: Committee

6. 30 March 1987

   Floor

   Measure laid before Senate by unanimous consent.

   Source: Floor

7. 31 March 1987

   Floor

   Considered by Senate.

   Source: Floor

8. 31 March 1987

   Vote

   Passed/agreed to in Senate: Passed Senate with amendments by Yea-Nay Vote. 71-27. Record Vote No: 49.

   Source: Floor

9. 7 April 1987

   Introduced

   Referred to House Committee on Banking, Finance and Urban Affairs.

   Source: IntroReferral

10. 7 April 1987

    Floor

    Message on Senate action sent to the House.

    Source: Floor

11. 17 June 1987

    Floor

    House Incorporated H.R.4 in This Measure as an Amendment.

    Source: Floor

12. 17 June 1987

    Passed

    Passed House (Amended) by Voice Vote.

    Source: Floor

13. 17 June 1987

    Passed

    Passed/agreed to in House: Passed House (Amended) by Voice Vote.

    Source: Floor

14. 17 June 1987

    Floor

    Called up by House by Unanimous Consent.

    Source: Floor

15. 17 June 1987

    Discharge

    House Committee on Banking, Finance and Urban Affairs Discharged by Unanimous Consent.

    Source: Discharge

16. 17 June 1987

    Committee

    House Committee on Banking, Finance and Urban Affairs Discharged by Unanimous Consent.

    Source: Committee

17. 23 June 1987

    Floor

    Message on House action received in Senate and held at desk: House amendments to Senate bill.

    Source: Floor

18. 10 July 1987

    Passed

    Resolving differences -- Senate actions: Senate disagreed to the amendments of the House by Voice Vote.

    Source: NotUsed

19. 10 July 1987

    ResolvingDifferences

    Senate requests a conference. Appoints conferees. Proxmire; Cranston; Riegle; Sarbanes; Heinz; D'Amato; Gramm.

    Source: ResolvingDifferences

20. 10 July 1987

    Passed

    Senate disagreed to the amendments of the House by Voice Vote.

    Source: Floor

21. 13 July 1987

    Floor

    Message on Senate action sent to the House.

    Source: Floor

22. 15 July 1987

    Floor

    Message on House action received in Senate and held at desk:. House agrees to hold a conference.

    Source: Floor

23. 15 July 1987

    Passed

    House Agreed to Request for Conference and Speaker Appointed Conferees: St Germain, Gonzalez, Fauntroy, Oakar, Vento, Garcia, Schumer, Frank, Lehman (CA), Morrison (CT), Kaptur, Erdreich, Wylie, Roukema, Wortley, Bereuter, Hiler, Ridge, Bartlett.

    Source: ResolvingDifferences

24. 15 July 1987

    ResolvingDifferences

    House Insisted on its Amendments by Voice Vote.

    Source: ResolvingDifferences

25. 15 July 1987

    NotUsed

    Resolving differences -- House actions: House Insisted on its Amendments by Voice Vote.

    Source: NotUsed

26. 4 August 1987

    ResolvingDifferences

    Conference held.

    Source: ResolvingDifferences

27. 4 August 1987

    ResolvingDifferences

    Conference committee actions: Conference held.

    Source: ResolvingDifferences

28. 17 September 1987

    ResolvingDifferences

    Conference held.

    Source: ResolvingDifferences

29. 17 September 1987

    ResolvingDifferences

    Conference committee actions: Conference held.

    Source: ResolvingDifferences

30. 20 October 1987

    ResolvingDifferences

    Conference held.

    Source: ResolvingDifferences

31. 20 October 1987

    ResolvingDifferences

    Conference committee actions: Conference held.

    Source: ResolvingDifferences

32. 27 October 1987

    ResolvingDifferences

    Conference held.

    Source: ResolvingDifferences

33. 27 October 1987

    ResolvingDifferences

    Conference committee actions: Conference held.

    Source: ResolvingDifferences

34. 6 November 1987

    ResolvingDifferences

    Conference report filed: Conference Report 100-426 Filed in House.

    Source: ResolvingDifferences

35. 6 November 1987

    ResolvingDifferences

    Conference Report 100-426 Filed in House.

    Source: ResolvingDifferences

36. 9 November 1987

    Vote

    House Agreed to Conference Report by Yea-Nay Vote: 391 - 1 (Record Vote No: 417).

    Source: ResolvingDifferences

37. 9 November 1987

    Vote

    Conference report agreed to in House: House Agreed to Conference Report by Yea-Nay Vote: 391 - 1 (Record Vote No: 417).

    Source: ResolvingDifferences

38. 10 November 1987

    ResolvingDifferences

    Conference papers: message on House action held at the desk.

    Source: ResolvingDifferences

39. 12 November 1987

    ResolvingDifferences

    Conference report considered in Senate.

    Source: ResolvingDifferences

40. 13 November 1987

    ResolvingDifferences

    Conference report considered in Senate.

    Source: ResolvingDifferences

41. 13 November 1987

    Vote

    Motion to waive the Budget Act with respect to the conference report on S.825 rejected in Senate by Yea-Nay Vote. 53-40. Record Vote No: 376.

    Source: Floor

42. 17 November 1987

    Vote

    Motion by Senator Byrd to reconsider the vote by which the motion to waive the budget act with respect to the conference report was rejected, agreed to in Senate by Yea-Nay Vote. 99-1. Record Vote No: 379.

    Source: Floor

43. 17 November 1987

    ResolvingDifferences

    Conference report considered in Senate.

    Source: ResolvingDifferences

44. 21 December 1987

    NotUsed

    Resolving differences -- Senate actions: Senate concurred in the House amendments with amendments by Voice Vote.

    Source: NotUsed

45. 21 December 1987

    Floor

    Measure laid before Senate by unanimous consent.

    Source: Floor

46. 21 December 1987

    ResolvingDifferences

    Senate concurred in the House amendments with amendments by Voice Vote.

    Source: ResolvingDifferences

47. 22 December 1987

    Vote

    House Agreed to Senate Amendments to House Amendments by Yea-Nay Vote: 391 - 2 (Record Vote No: 511).

    Source: ResolvingDifferences

48. 22 December 1987

    Vote

    Resolving differences -- House actions: House Agreed to Senate Amendments to House Amendments by Yea-Nay Vote: 391 - 2 (Record Vote No: 511).

    Source: NotUsed

49. 22 December 1987

    Floor

    Message on Senate action sent to the House.

    Source: Floor

50. 25 January 1988

    Floor

    Measure Signed in Senate.

    Source: Floor

51. 26 January 1988

    Floor

    Presented to President.

    Source: Floor

52. 26 January 1988

    President

    Presented to President.

    Source: President

53. 5 February 1988

    Became law

    Became Public Law No: 100-242.

    Source: President

54. 5 February 1988

    Became law

    Signed by President.

    Source: BecameLaw

55. 5 February 1988

    President

    Signed by President.

    Source: President

Votes

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

4 official files

• Public Law (PDF)

  Public Law · EN · 6 February 1988

  ViewDownloadOpen at official source

• Senate agreed to House amendment with amendment

  summary · EN · 21 December 1987

  Open at official source

• Passed Senate amended

  summary · EN · 31 March 1987

  Open at official source

• Introduced in Senate

  summary · EN · 24 March 1987

  Open at official source

Sponsors

• Sen. Proxmire, William [D-WI] · D · Sponsor
• · hsba00 · Standing
• · ssbk00 · Standing

Related records

• related to → Housing, Community Development, and Homelessness Prevention Act of 1987