96th Congress > House > Vote 165

Date: 1979-06-05

Result: 162-266

Vote Subject Matter: Social Welfare / Budget Special Interest

Sponsor: RITTER, Donald Lawrence (R-PA)

Bill number: HR3875

Description: TO AMEND H.R. 3875, THE HOUSING AND COMMUNITY DEVELOPMENT AMENDMENTS OF 1979, BY TRANSFERRING $200 MILLION OF THE $275 MILLION INCREASE IN AUTHORIZATIONS TO THE URBAN DEVELOPMENT BLOCK GRANT PROGRAM. (MOTION FAILED)

Bill summary: (Conference report filed in House, H. Rept. 96-706) Housing and Community Development Amendments of 1979 - =Title I: Community and Neighborhood Development and Conservation= - Extends the rehabilitation loan program and authorizes appropriations for fiscal year 1980 for community and neighborhood development and conservation provided under the Housing Act of 1964. Amends the Housing Act of 1954 to extend the comprehensive planning program and to authorize appropriations for fiscal year 1980. (...show more) Authorizes appropriations for fiscal year 1980 for Neighborhood Reinvestment Corporation programs under the Housing and Community Development Amendments of 1978. Reduces the authorization level for fiscal year 1980 for the neighborhood self-help development programs and the livable cities programs under the Housing and Community Development Amendments of 1978. Increases the authorization for appropriations of the community development block grant program and the set aside under such program for nonentitlement metropolitan communities in fiscal year 1980. Authorizes the Secretary of Housing and Urban Development to waive all or part of the summary, formulation, and description requirements of the community development block grant program under the Housing and Community Development Act of 1974 in those cases in which an application for a block grant does not involve a comprehensive community development program and such waiver is not inconsistent with the purposes of the program. Extends through fiscal year 1980 the provision that requires a pro-rata reduction in all block grants in the case of a shortfall in funding for entitlement. Makes any unit of local government which is part of, but not located entirely within, an urban county eligible for such block grants provided the funds received will be used in that part of the unit for which the grant was made and not in that part located outside of the urban county. Stipulates that such unit of local government may not be included as part of any other unit of local government for the purpose of computing such assistance. Makes general political subdivisions of the Northern Mariana Islands eligible for community development block grants. Authorizes the Secretary to delegate responsibility for certain environmental reviews to local governments. Authorizes the Secretary to make grants out of funds appropriated to the urban development action grant (UDAG) program to cities or urban counties experiencing severe distress in only certain areas within their boundaries and which do not meet the minimum standards for the UDAG program. Sets forth requirements based on population and prevailing income levels for determining eligibility for such grants. Directs the Secretary to establish criteria for selecting grant recipients from among the eligible areas. Prohibits the Secretary from using more than 20 percent of the funds available under the UDAG program for such grants. Predicates a project's eligibility under the UDAG program on the Secretary's determination that: (1) non-federal funds would not be invested in the project without the grant; and (2) the grant would not be a substitute for non-federal funds otherwise available to the project. Authorizes the Secretary to waive the requirement that a town or township be closely settled in order to be eligible for community development grants. Authorizes the Secretary to reimburse the Veterans Administration and the Secretary of Agriculture for properties transferred to urban homesteading programs approved by the Secretary. Amends the Housing and Community Development Amendments of 1978 to reduce the authorization for neighborhood self-help development in fiscal year 1980. Allows up to ten percent of the assistance available under the Neighborhood Self-Help Development Act of 1978 to be used for uncertified projects demonstrating innovative means of assisting in neighborhood conservation and revitalization. Reduces the fiscal year 1980 authorization for the livable cities program. Requires local housing assistance plans to contain an assessment of the impact of the conversion of rental housing to condominium or cooperative ownership on the present and anticipated housing needs of lower income persons. Directs the Secretary to review such plans and submit a report to the Congress within six months. =Title II: Housing Assistance Programs= - Amends the United States Housing Act of 1937 to authorize appropriations for annual contributions to low-income housing projects and operating services through fiscal year 1980. Establishes a ceiling on the amount of appropriations the Secretary may use in entering contracts to assist public housing projects. Requires that specified amounts be made available for modernization of such projects. Amends the United States Housing Act of 1937 to set forth: (1) new limits on the percentage of a family's income which may be required as rent for low-income housing; (2) criteria for tenant selection; (3) requirements for the maintenance of the low-income character of certain assisted housing projects; and (4) provisions for the distribution of unexpended operating subsidies. Exempts from such provisions tenants who are residing in assisted low-income housing units on December 31, 1979, so long as continuous occupancy is maintained. Amends the Housing and Urban Development Act of 1965 to redefine the eligibility, income, and payment standards for rent supplement assistance to make them identical to those applicable to low-income housing assistance under the United States Housing Act of 1937. Exempts existing recipients of supplements from such eligibility provisions. Directs the Secretary to give priority in extending rent supplemental payments to individuals or families who are occupying substandard housing or are involuntarily displaced at the time they are seeking housing assistance. Amends the National Housing Act to redefine the income standard for determining eligibility for assistance under rental or cooperative housing programs to make them identical to those applicable for low-income housing under the United States Housing Act of 1937 excluding tenants occupying units on the date of enactment of this Act and maintaining their occupancy thereafter. Exempts appropriations for modernization of low-income housing projects from allocation requirements of the Housing and Community Development Act of 1974. Requires a State's allocation to be maintained even if it is not utilized within a fiscal year unless no community in such State can use the funds. Authorizes appropriations for operating assistance for troubled multifamily projects in fiscal year 1980. Directs the Secretary to give preferences in selecting tenants for public and low-income housing projects to persons and families who are displaced or occupying substandard housing. Requires undistributed appropriations for operating subsidies to be used to assist projects facing unforeseen, excessive costs. Directs the Secretary to provide assistance to displaced tenants in HUD-owned projects. Directs the Secretary, to the maximum extent practicable to: (1) consider modernization projects which incorporate weatherization measures as defined in the Energy Conservation in Existing Buildings Act of 1976 when providing for assistance for the rehabilitation of low-income housing projects; and (2) require newly constructed and substantially rehabilitated projects receiving assistance to be equipped with heating and cooling systems selected on the basis of criteria which include a life-cycle cost analysis of such systems. Directs the Secretary to establish procedures to verify the income data submitted as a prerequisite to Federal assistance for low-income housing projects. Requires such procedures to include the random and confidential sampling of family incomes through the examination of unemployment compensation, income tax, social security, and food stamp information. Prohibits any low-income project from being disposed of prior to ten years from the payment of a Federal operating subsidy unless such disposition is approved by the Secretary. Directs the Secretary to prepare a study for submission to Congress on the feasibility and financial desirability of requiring minimum rental payments from tenants in federally assisted low-income housing projects. Directs the Secretary to give preference to low-income families displaced by condominium and cooperative conversions in extending ownership assistance under the National Housing Act. States that such assistance may include the acquisition of a condominium or interest in a cooperative. Repeals restrictions on ownership assistance for acquisition of existing dwelling units and condominiums which authorized assistance only for families with five or more minor children or families living in public housing. Permits the Secretary to insure certain mortgages involving principal amounts exceeding current maximum limits by not more than 20 percent if: (1) such mortgage bears an interest rate of at least four percent per annum; (2) the insured property is located in an area in which a community sponsored program of concentrated redevelopment or revitalization is being undertaken; and (3) such action would enable eligible families living in the area in substandard housing, or who are being involuntarily displaced, to remain in the area in decent, safe, and sanitary housing. =Title III: Program Amendments and Extensions= - Extends for one year, through September 30, 1980, the authority of the Secretary of Housing and Urban Development (HUD) to insure mortgages or loans under certain HUD mortgage or loan insurance programs under the National Housing Act and to set interest rates for insured mortgage loans. Extends until October 1, 1980, the authority of the Government National Mortgage Association to enter into new commitments to purchase mortgages under the interim mortgage purchase authority of the National Housing Act as amended by the Emergency Home Purchase Assistance Act of 1974. Amends the Housing and Urban Development Act of 1970 by authorizing appropriations for fiscal year 1980 for research. Amends the National Housing Act to authorize appropriations as may be necessary from time to time to cover losses sustained by the General Insurance Fund. Increases for fiscal years 1980, 1981, and 1982, the borrowing authority of the Department of the Treasury for housing programs for the elderly or handicapped under the Housing Act of 1959. Sets forth new factors which the Secretary may consider in reviewing applications for loans for such programs including, but not limited to, the provision of relocation housing for elderly and handicapped families being displaced by revitalization activities. Includes adult day health facilities within the definition of "related facilities" for the purpose of providing such loans. Directs the Secretary to readjust the amount of rental assistance to be provided under a contract for annual contributions in order to reflect fully any difference between the interest rate which will be charged for the permanent financing of the assisted project, and the rate which was in effect at the time of project reservation. Requires the Secretary to report to the Congress on means to reduce the cost of the program which do not unduly burden project sponsors or adversely affect the ability of the program to meet the housing needs of elderly and handicapped families. Directs the Secretary to submit a report to the Congress on the direction of Federal housing programs and the capacity for meeting the housing needs of the elderly and the handicapped in rural areas. Authorizes appropriations for the Neighborhood Reinvestment Corporation in fiscal year 1980. Exempts mortgages or advances insured under the National Housing Act by the Federal Housing Administration from State constitutional and statutory usury ceilings. Directs the Secretary to submit to the Congress, along with recommendations for legislation, a study of possible alternatives to the fixed statutory maximum mortgage limits. Requires such study to include examination of mortgage ceilings, prototype cost limits, regional ceilings, sales prices, and construction costs. Exempts dwellings covered by HUD approved consumer protection or warranty plans from the ten percent downpayment requirement if such dwellings are less than one year old or were not approved by the Federal Housing Administration (FHA) prior to construction. Homeownership Opportunity Act of 1979 - Amends the National Housing Act to provide new options for homebuyers under the FHA-insured graduated payment program by reducing the downpayment to that which is required under regular FHA-insured programs and removing the limitation that the mortgage balance not exceed 97 percent of the appraised value of the home at the time of purchase. Requires the Secretary to determine, before insuring a graduated payment mortgage, that: (1) the mortgagor could not reasonably afford a dwelling under another FHA-insured program; (2) the principal obligation of the mortgage does not initially exceed existing limits when accepted for insurance; (3) the principal obligation will never exceed 113 percent of the appraised value of the property thereafter; and (4) the mortgagor has not owned a dwelling unit for the preceding three years. Stipulates that the mortgage balance may not exceed 97 percent of the "projected value" which would be calculated by increasing the initial appraised value of the property by an appreciation rate of not more than two-and-one-half percent. Limits the number of graduated payment mortgages which may be insured in any fiscal year to the greater of: (a) ten percent of the total principal amount of FHA one-to-year family mortgages insured during the previous fiscal year; or (b) $50,000. Preempts State law contrary to the Secretary's authority with respect to graduated payment mortgages. Increases the maximum insurable mortgage amounts prescribed under the National Housing Act for the following programs: (1) regular rental housing; (2) cooperative housing; (3) neighborhood conservation and renewal housing; (4) mortgage insurance for condominiums; (5) rental housing for moderate-income and displaced families; and (6) mobile home parks. Sets the maximum mortgage limit at 75 percent in any geographical area and at 90 percent in high-cost areas determined by the Secretary. Prohibits the Secretary from approving any hospital's application for insurance or refinancing which utilizes the issuance of tax-exempt securities combined with the Federal loan guarantee. Exempts applications for insurance or refinancing submitted prior to March 29, 1979 from such prohibition. Exempts from such prohibition any non-profit hospital which has engaged an investment banker and notified the appropriate Federal departments to arrange such financing prior to June 7, 1979 if such hospital derives revenues from Medicare and Medicaid exceeding 125 percent of the national average. Amends the Federal Home Loan Mortgage Corporation Act to permit securities sold, issued, or guaranteed by the Corporation to be lawful investments and accepted as security for all fiduciary trusts and public funds. Permits a State to override such authority. Terminates such authority on June 30, 1985. States that the Corporation's securities shall be considered obligations of the United States. Authorizes the Government National Mortgage Association to purchase mortgages on certain multifamily housing projects with an original principal obligation that exceeds the otherwise applicable maximum amount per dwelling unit provided: (1) such mortgages are insured by the Federal Housing Administration; and (2) at least 20 percent of the units covered by such mortgages are assisted under contracts authorized for low-income housing assistance under the United States Housing Act of 1937. Authorizes the Secretary of HUD to insure mortgages on farm homes located on plots of land at least two and one half acres in size adjacent to an all-weather public road. Deletes provisions of existing law which make such mortgage insurance available only to homes located on at least five acre tracts adjacent to public highways. Sets such minimum lot size at two-and-one-half acres. Repeals language of the National Housing Act which limited the insurance of a supplemental loan for improvements to a Federal Housing Administration insured multifamily project, hospital, or group practice facility to the remaining term of the original mortgage on such property. Amends the National Mobile Home Construction and Safety Standards Act of 1974 to permit the use of inspection fees to cover the expenses incurred in making inspections. Directs the Secretary of Housing and Urban Development to make recommendations on programs to encourage individual ownership of mobile home lots through condominium or cooperative development of mobile home parks or subdivisions. Disapproves the final rule revision of HUD entitled "Increases in Thermal Requirements for HUD Minimum Property Standards". Invalidates such rule revision insofar as it applies to masonry construction. Amends the Federal Deposit Insurance Act, the National Housing Act, and the Federal Credit Union Act to make Federal deposit insurance of up to a maximum of $100,000 per account available to Indian tribal funds deposited in an insured bank, savings and loan association, or credit union. Declares that such amendments are not applicable to closings of financial institutions prior to enactment of this Act. Authorizes national banks, designated by the Secretary of the Treasury, to serve as depositories for Indian tribal funds. Requires such banks to give satisfactory security for the safekeeping and prompt payment of such funds by the deposit of United States bonds. Amends the Federal Home Loan Bank Act and the Home Owner's Loan Act of 1933 to authorize the Federal home loan banks and savings and loan associations to invest in minority enterprise small business investment companies for the purpose of aiding members of the Federal Home Loan Bank System. Prohibits such investments from exceeding one percent of the assets of a Federal Savings and Loan Association. Raises the ceiling on single-family loans for federally chartered savings and loan association from $60,000 to $75,000. Amends the Federal Home Loan Bank Act to decrease (from 12-to-1 to 20-to-1) the ratio of capital stock required to be purchased by a member of a Federal Home Loan Bank for such member to be eligible for loans from the Federal Home Loan Banks. Directs the Secretary of Housing and Urban Development, the Administrator of Veterans' Affairs, and the Secretary of Agriculture to employ uniform forms in their housing financing transactions and to eliminate forms which solicit duplicative information. Requires the Office of Management and Budget to coordinate these efforts and to report to Congress on the implementation of such paperwork reduction. =Title IV: Interstate Land Sales= - Amends the Interstate Land Sales Full Disclosure Act to outline specified exemptions from the provisions of such Act including provisions requiring registration and disclosure of the sale or lease of lots in subdivisions of specified size and intrastate sales of lots which have been inspected by the purchaser, are free and clear of all encumbrances, and have clearly defined the party responsible for providing access roads, utilities, and other amenities. Sets forth requirements relating to the sale or lease of lots if a mobile home is to be erected as a primary residence. Makes it unlawful for any developer or agent to deceive or in any way defraud a purchaser or lessee of a lot. Provides for civil relief by a purchaser or lessee for any such unlawful act. Permits the Secretary of Housing and Urban Development to certify as equivalent to the Federal law any State land sale disclosure law which is substantially equivalent to the Interstate Land Sales Full Disclosure law. Sets forth criminal penalties for any willful violation of this Act. Requires the Secretary to submit to the Congress biennially a report on the administration of this Act and its impact upon the land development industry and purchasers and lessees of undeveloped land. States that the effective date of the amendments made by this title shall be the effective date of implementing regulations, except that the intrastate land sales exemption shall become effective upon enactment of this title. =Title V: Rural Housing= - Authorizes appropriations for fiscal year 1980 for the following rural housing programs administered by the Secretary of Agriculture subject to approval in appropriation Acts: (1) low and moderate income or elderly rental and cooperative housing assistance; (2) insurance of loans for housing and related facilities for domestic farm labor; and (3) advances from the escrow account for taxes, insurance and other expenses. Authorizes appropriations for: (1) payments on notes and obligations issued by the Secretary for the purpose of making direct loans; (2) loans and grants for repairs and improvements to rural dwellings; (3) financial assistance to provide low-rent housing for domestic farm labor; (4) loans and loan insurance for the purchase of condominiums in rural areas; and (5) sums necessary for the Secretary to administer specified Federal housing program for lower income families. Repeals the ceiling on the aggregate loan principal which may be insured in a single fiscal year for housing and related facilities for domestic farm labor. Limits the amount of contract authority for home ownership subsidies in fiscal years 1979 and 1980. Prohibits such assistance in any fiscal year after 1980. Authorizes appropriations for mutual and self-help housing programs and for the Self-Help Housing Land Development Fund in fiscal year 1980. Extends certain rural housing loan insurance programs through fiscal year 1980. Authorizes the Secretary of Agriculture to raise the interest rate on rural housing loans to the maximum FHA rate if the borrower can afford such a rate. Defines "persons and families of low income" for the purpose of Federal rural housing programs. Restricts refinancing and prepayment of certain loans to project owners in order to preserve the character of housing which has received Federal assistance. Increases the percentage of family units which may receive rental assistance from 20 to 70 percent of the units in a project. Directs the Secretary to give priority to projects with 40 percent or less of the units receiving such assistance. Expands the authority of the Secretary to contract for services facilitating public and private nonprofit entities in providing technical supervisory assistance to low-income individuals who are participating in mutual self-help housing in rural areas and small towns. Repeals the requirement that, in order for the Secretary of Agriculture to extend financial assistance through the Farmers Home Administration to specified owners of farms or real estate in rural areas for refinancing indebtedness, such indebtedness must be incurred at least five years prior to the application for assistance. Limits refinancing to instances where: (1) the applicant would uncontrollably lose a dwelling or essential building; or (2) the applicant's dwelling is substandard and would otherwise continue to remain substandard. Empowers the Secretary of Agriculture to repair and rehabilitate any property acquired by foreclosure or sale, Prohibits the Secretary from disposing of any residential property unless: (1) the Secretary assures that the property will meet decent, safe, and sanitary standards; (2) the purchaser covenants that the property will meet such standards before it is occupied; or (3) the property will not be used for residential purposes. Extends the period of time in which a homeowner who has received assistance may request aid to correct construction defects. Allows the Secretary to provide up to 90 percent of the development costs of housing for migrant farmworkers while they are away from their residence. Increases the assistance which one individual may receive under the Housing Act of 1949 for the repair and improvement of a rural dwelling to $5,000 in the case of a grant, and $7,500 in the case of a combined loan and grant. Requires 30 percent of the assistance made under the Farmers Home Administration in any fiscal year to benefit, to the extent practicable, persons with incomes below 50 percent of the area median income. =Title VI: Crime Insurance, Riot Reinsurance and Flood Insurance Extensions= - Amends the National Housing Act to extend until September 30, 1981, the authority of the Secretary of Housing and Urban Development under the national insurance development program. Authorizes the Secretary to continue certain reinsurance and direct insurance until September 30, 1984. Amends the National Flood Insurance Act of 1968 to extend until September 30, 1981, the flood insurance program. Authorizes to be appropriated for fiscal year 1980 an amount not to exceed $74,000,000 for flood insurance studies required to establish actuarial premium rates for the regular flood insurance program. Amends the Urban Property Protection and Reinsurance Act of 1968 to transfer the position of the Federal Insurance Administrator from the Department of Housing and Urban Development to the Federal Emergency Management Agency.

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Bill titles: A bill to amend and extend certain Federal laws relating to housing, community and neighborhood development and preservation, and related programs, and for other purposes.

Original source documents: Digest of the Congressional Record vol. 71, p. 4056;

Links for more info on the vote: congress.gov

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