EXCERPTS FROM THE HOUSING ACT OF 1959 [Public Law 86–372, 73 Stat. 654, 667, 12 U.S.C. 1701q] TITLE II-HOUSING FOR THE ELDERLY OR § 202 LOAN PROGRAM SEC. 202. (a) (1) The purpose of this section is to assist private nonprofit corporations, limited profit sponsors,2 consumer cooperatives, or public bodies or agencies to provide housing and related facilities for elderly or handicapped families. 5 4 3 (2) In order to carry out the purpose of this section, the Secretary may make loans to any corporation (as defined in subsection (d) (2)), to any limited profit sponsor approved by the Secretary, to any consumer cooperatives, or to any public body or agency for the provision of rental or cooperative housing related facilities for elderly or handicapped families, except that (A) no such loan shall be made unless the applicant shows that it is unable to secure the necessary funds from other sources upon terms and conditions equally as favorable as the terms and conditions applicable to loans under this section, (B) no such loan shall be made unless the Secretary finds that the construction will be undertaken in an economical manner and that it will not be of elaborate or extravagant design or materials, and (C) no such loan shall be made to a public body or agency unless it certifies that it is not receiving financial assistance from the United States exclusively pursuant to the United States Housing Act of 1937. 1 Sec. 203, Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 783, 784, amended the program of loans for housing for the elderly (and also the FHA secs. 221 and 231 mortgage insurance programs, the PHA low-rent public housing program, and the demonstration grant programs for low-income housing) to include handicapped persons and families. 2 Sec. 1706 (1), Housing and Urban Development Act of 1968, Public Law 90-448, approved August 1, 1968, 82 Stat. 476, 605, added "limited profit sponsors”. Sec. 201(a)(1). Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149. 162, added "consumer cooperatives. or public bodies or agencies". Immediately prior to amendment by sec. 201(a)(2), Housing Act of 1961. Public Law 87-70, approved June 30. 1961, 75 Stat. 149, 162, this subsection read as follows: "In order to carry out the purpose of this section, the Administrator may make loans to any corporation (as defined in subsection (d)(2)) for the provision of rental housing and related facilities for elderly families and elderly persons, except that (A) no such loan shall be made unless the corporation shows that it is unable to secure the necessary funds from other sources upon terms and conditions equally as favorable as the terms and conditions applicable to loans under this section, and (B) no such loan shall be made unless the Administrator finds that the construction will be undertaken in an economical manner, and that it will not be of elaborate or extravagant design or materials." See provisions for refinancing in sec. 201(d), Housing and Urban Development Act of 1968. 5 Sec. 16, Public Law 90-19. approved May 25, 1967. 81 Stat. 17, 25, substituted "Secretary" for "Administrator" thronghont this section in order to make it conform to the Department of Housing and Urban Development Act, which placed all the functions of the Housing and Home Finance Administrator in the Secretary of Housing and Urban Development. 415 3 (3) A loan 1 under this section may be in an amount not exceeding 2 the total development cost (as defined in subsection (d) (3)), as determined by the Secretary, except that in the case of other than a corporation, consumer cooperative, or public body or agency the amount of the loan shall not exceed 90 per centum of the development cost; shall be secured in such manner and be repaid within such period, not exceeding fifty years, as may be determined by him; which is not more than a rate determined by the Secretary of the Treasury taking into consideration the average interest rate on all interest bearing obligations of the United States then forming a part of the public debt, computed at the end of the fiscal year next preceding the date on which the loan is made adjusted to the nearest one-eighth of 1 per centum, plus an allowance adequate in the judgment of the Secretary to cover administrative costs and probable losses under the program.5 4 (4) (A) There is authorized to be appropriated for the purposes of this section not to exceed $500,000,000, which amount shall be increased by $150,000,000 on July 1, 1969. Amounts so appropriated, and the proceeds from notes or other obligations issued under subparagraph (B),8 shall constitute a revolving fund to be used by the Secretary in carrying out this section." (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 $1,475,000,000, which amount shall be increased to $2,387,500,000 on October 1, 1977, and to $3,300,000,000 on October 1, 1978 10 in such forms and denominations, bearing such maturities, and subject to such terms and conditions as may be prescribed by the Secretary of the Treasury. Such notes or other obligations shall bear interest at a rate determined by 1 Sec. 201 (a) (3), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 163, deleted "to a corporation' " 2 Sec. 201(b), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 163, deleted "98 per centum of". 3 Sec. 1706, Housing and Urban Development Act of 1968, Public Law 90-448, approved August 1, 1968, 82 Stat. 476, 605, inserted ", except that in the case of other than a corporation, consumer cooperative, or public body or agency the amount of the loan shall not exceed 90 per centum of the development cost". 4 Sec. 11 (c) (1) of the Housing Authorization Act of 1976, Public Law 94-375 approved August 3, 1976, 90 Stat. 1067, amended section 202(a)(3) of the National Housing Act to read as set forth in the text. 5 Sec. 210(a) of Housing and Community Development Act. of 1974, Public Law 93-383, 88 Stat. 633, approved August 22, 1974, amended section 202 (a) (3). 6 Sec. 210(d)(1) of Housing and Community Development Act. of 1974, Public Law 93-383, 88 Stat. 633, approved August 22, 1974, inserted "(A)" after "(4)". 7 Sec. 201 (c), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 163, substituted "$125,000,000" for "$50,000,000," sec. 3(a) of the Senior Citizens Housing Act of 1962, Public Law 87-723, approved September 28, 1962, 76 Stat. 670, substituted "$250,000,000" for "$125,000,000", Public Law 88-158, approved October 24, 1963. 77 Stat. 278, substituted "$275,000,000" for "$225,000,000", sec. 201, Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 783, substituted "$350,000,000" for "$275,000,000", and sec. 105 (a), Housing and Urban Development Act of 1965, Public Law 89-117, approved August 10, 1965, 79 Stat. 451, 457, substituted "$500,000,000" for "$350,000,000". Sec. 218, Housing and Urban Development Act of 1969, Public Law 91-152, approved December 24, 1969, 83 Stat. 379, 390, increased the authorization by $150,000,000 on July 1, 1969. See authorizations for sales of participations in loans for housing for the elderly contained in appropriation acts. 8 Sec. 210 Housing and Community Development Act. of 1974, Public Law 93-383, 88 Stat. 633, approved August 22, 1974, added the words ", and the proceeds from notes or other obligations issued under subparagraph (B),". Sec. 201 (c), Housing Act of 1961, Public Law 87-70 approved June 30, 1961, 75 Stat. 149, 163, deleted the sentence following which read: "The amount outstanding from such fund at any one time for related facilities (as defined in subsection (d) (8) shall not exceed $5,000,000." 10 Sec. 11 (a) (1) of the Housing Authorization Act of 1976, Public Law 94-375, approved August 3, 1976, 90 Stat. 1067, amended section 202 (a) (4) (B) (i) of the Housing Act of 1959, by deleting "$800,000,000" and inserting in lieu thereof "$1,475.000,000, which amount shall be increased to $2,387,500,000 on October 1, 1977, and to $3,300,000,000 on October 1, 1978". the Secretary of the Treasury, taking into consideration 1 the average interest rate on all interest bearing obligations of the United States then forming a part of the public debt, computed at the end of the fiscal year next preceding the date on which the loan is made. 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 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. All 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. The 2 Secretary may not issue notes or other obligations to the Secretary of the Treasury pursuant to this section in an aggregate amount exceeding $800,000,000 except as approved in appropriation Acts. (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 interest on obligations issued under subparagraph (B). The aggregate loans made under this section in any fiscal year shall not exceed the limits on such lending authority established for such year in appropriation Acts.3 (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.* (b) In the performance of, and with respect to, the functions, powers, and duties vested in him by this section the Secretary shall (in addition to any authority otherwise vested in him) have the functions, powers, and the duties set forth in section 402 (except subsection (c) (2)) of the Housing Act of 1950. (c) (1) Housing constructed with a loan made under this section shall not be used for transient or hotel purposes while such loan is outstanding. (2) As used in paragraph (1), the term "transient or hotel purposes" shall have such meaning as may be prescribed by the Secretary, but rental for any period less than thirty days shall in any event constitute use for such purposes. The provisions of subsection (f) through (j) of section 513 of the National Housing Act (as added by section 132 of the Housing Act of 1954) shall apply in the case of violations of paragraph (1) as though the housing described in such 1 Sec. 11 (c) (2) of the Housing Authorization Act of 1976, Public Law 94-375 approved August 3, 1976, 90 Stat. 1067, amended section 202(a) (4) (B) (i) of the National Housing Act to read as set forth in the text. 2 Sec. 11(a) (2) of the Housing Authorization Act of 1976, Public Law 94-375, approved August 3. 1976, 90 Stat. 1067, amended section 202 (a) (4) (B) (i) of the Housing Act of 1959 by adding a new last sentence. 3 Sec. 210(d) of Housing and Community Development Act of 1974, Public Law 93-383. 88 Stat. 633, approved August 22, 1974, also amended sec. 202 (a) of the Housing Act of 1959 by adding new subparagraphs (B) and (C). Sec. 210(e) of Housing and Community Development Act. of 1974, Public Law 93-383, 88 Stat. 633, approved August 22, 1974, added this new paragraph (5). subsection were multifamily housing (as defined in section 513 (e) (2) of the National Housing Act) with respect to which a mortgage is insured under such Act. (3) The Secretary shall take such action as may be necessary to insure that all laborers and mechanics employed by contractors and subcontractors in the construction of housing assisted under this section shall be paid wages at rates not less than those prevailing in the locality involved for the corresponding classes of laborers and mechanics employed on construction of a similar character, as determined by the Secretary of Labor in accordance with the Act of March 3, 1931, as amended (the Davis-Bacon Act); but the Secretary may waive the application of this paragraph in cases or classes of cases where laborers or mechanics, not otherwise employed at any time in the construction of such housing, voluntarily donate their services without full compensation for the purposes of lowering the costs of construction and the Secretary determines that any amounts saved thereby are fully credited to the corporation, cooperative,1 or public body or agency undertaking the construction. (d) As used in this section (1) The term "housing" means structures suitable for dwelling use by elderly or handicapped families which are (A) new structures, or (B) provided by rehabilitation, alteration, conversion, or improvement of existing structures which are otherwise inadequate for proposed dwelling use by such families. (2) The term "corporation" means any incorporated private institution or foundation no part of the net earnings of which inures to the benefit of any private shareholder, contributor, or individual, if such institution or foundation is approved by the Secretary as to financial responsibility. (3) The term "development cost" means costs of construction of housing and of other related facilities, and of the land on which it is located, including necessary site improvement. 2 (4) The term "elderly or handicapped families" means " families which consist of two or more persons and the head of which (or his spouse) is sixty-two years of age or over or is handicapped, and 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) substantially impedes his ability to live independently, and (C) is of such a nature that such ability could be improved by more suitable housing conditions. A person shall also be considered handicapped if such person is a developmentally disabled individual as defined in section 102(a) (5) of the Developmental Disabilities Services and Facilities Construction Amendments of 1 Sec. 201 (a) (4), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 163, added "cooperative, or public body or agency". 2 Immediately prior to amendment by sec. 203, Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 784, the first sentence of this paragraph read as follows: "The term 'elderly families' means families the head of which (or his spouse) is sixtytwo years of age or over; and the term 'elderly persons' means persons who are sixty-two years of age or over. 3 Sec. 210(b) (1) of Housing and Community Development Act of 1974, Public Law 93-383, 88 Stat. 633, approved August 22, 1974, substituted "an" for "a physical". 1970.1 The Secretary shall prescribe such regulations as may be necessary to prevent abuses in determining, under the definitions contained in this paragraph, the eligibility of families and persons for admission to and occupancy of housing constructed with assistance under this section. Notwithstanding the preceding provisions of this paragraph, the term "elderly or handicapped families" includes two or more elderly or handicapped persons living together, one or more such persons living with another person who is determined (under regulations prescribed by the Secretary) to be essential to their care or well-being, and the surviving member or members of any family described in the first sentence of this paragraph who were living, in a unit assisted under this section, with the deceased member of the family at the time of his or her death.2 (5) The term "State" includes the several States, the District of Columbia, the Commonwealth of Puerto Rico, and the possessions of the United States. (6) The term "Secretary" means the Secretary of Housing and Urban Development. 3 (7) The term "construction" means erection of new structures or rehabilitation, alteration, conversion, or improvement of existing structures. 5 4 (8) The term "related facilities" means (A) new structures suitable for use by elderly or handicapped families residing in the project or in the area as cafeterias or dining halls, community rooms or buildings, workshops, or infirmaries or other inpatient or outpatient health facilities, or other essential service facilities, and (B) structures suitable for the above uses provided by rehabilitation, alteration, conversion, or improvement of existing structures which are otherwise inadequate for such uses. 6 (e) Nothing in this section or in regulations promulgated under this section shall prevent a corporation or consumer cooperative from obtaining a loan under this section for the provision of housing and related facilities for elderly or handicapped families, notwithstanding the fact that such corporation or cooperative has theretofore obtained a commitment from the Federal Housing Administration for mortgage insurance under section 231 of the National Housing Act with respect to the housing involved, if (1) such corporation or cooperative is otherwise eligible for such loan under this section, (2) such commitment was obtained prior to the date of enactment of the Housing Act of 1961 and (3) the Secretary determines that the financing of such 7 1 Sec. 210(b) (2) of Housing and Community Development Act of 1974, Public Law 93-383, 88 Stat. 633, approved August 22, 1974, contained two technical errors: the date of the Developmental Disabilities Services and Facilities Construction Amendments was cited as 1950 instead of 1970 and section 102(a) (5) of those Amendments was cited as section 102 (5). 2 Sec. 11(b) of the Housing Authorization Act of 1976, Public Law 94-375, approved August 3, 1976, 90 Stat. 1067, amended section 202 (d) (4) of the Housing Act of 1959, by adding a new last sentence. 3 Sec. 203, Housing Act of 1964. Public Law 88-560, approved September 2, 1964, 78 Stat, 769, 784. added the remainder of this paragraph. Immediately prior to amendment by sec. 203, Housing Act of 1964, Public Law 88-560, approved September 2. 1964, 78 Stat. 769, 784, this paragraph read as follows: "(8) The term 'related facilities' means new structures suitable for use as cafeterias or dining halls, community rooms or buildings, or infirmaries or other inpatient or outpatient health facilities, or for other essential service facilities." 5 Sec. 210(f) of Housing and Community Development Act of 1974, Public Law 93-383, 88 Stat. 633, approved August 22, 1974, added the words "residing in the project or in the area". Added by sec. 210 (d), Housing Act of 1961, Public Law 87-70. approved June 30, 1961, 75 Stat. 149, 163, and amended by sec. 203, Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 783, to include handicapped persons and families. June 30, 1961. |