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Section 1709. International housing
This section amends section 604 of the Housing Act of 1957 to clarify the authority of the Secretary of HUD to-(1) Exchange data on housing and urban development with foreign countries; (2) employ private citizens to participate in intergovernmental and international meetings sponsored or attended by HUD; and (3) accept funds and other donations from international organizations, foreign countries, and private foundations in connection with activities carried on under international housing programs.
Section 1710. Eligibility for rent supplement payments
This section extends eligibility to participate in the rent supplement program under section 101 of the Housing and Urban Development Act of 1965 to two projects in New York City which are presently ineligible for rent supplement assistance because of the early date of their approval for mortgage insurance.
Section 1711. Consolidation of low-rent public housing projects in the District of Columbia
This section allows the National Capital Housing Authority to consolidate the operating income and expense accounts for certain lowrent housing, built in the District of Columbia under title I of the District of Columbia Alley Dwelling Act before the enactment of the U.S. Housing Act of 1937, into its annual contributions contracts covering projects built under title II of the District Act with assistance under the 1937 act.
Section 1712. Urban renewal project in Garden City, Mich.
This section authorizes the inclusion as a local grant-in-aid, toward the Cherry Hill urban renewal project in Garden City, Mich., of local expenditures made in connection with the construction of the Florence Primary School notwithstanding the date of commencement of such construction.
Section 1713. Urban renewal project in Sacramento, Calif.
This section authorizes the inclusion as a local grant-in-aid, toward the Capitol Mall Riverfront urban renewal project in Sacramento, Calif., of local expenditures made in connection with the construction of a storm drainage system notwithstanding the date of commencement of such construction.
Section 1714. Self-help studies
This section amends section 207 of the Housing Act of 1961 to permit the Secretary of HUD to include the study of self-help in construction, rehabilitation, and maintenance of housing for low-income persons and families in the low-income housing demonstration program. Also directs Secretary of HUD to make a report to Congress within 1 year after date of enactment of this act, setting forth the results of the self-help studies and demonstrations carried out under section 207 with such recommendations as he deems appropriate. Section 1715. Earthquake study
This section amends section 5 of the Southeast Hurricane Disaster Relief Act of 1965 to extend, from October 31, 1968, to June 30, 1969, the date on which the Secretary must report on earthquake insurance under that act.
Section 1716. Savings and loan associations
Subsection (a) would authorize Federal savings and loan associations to raise capital in the form of such savings deposits or other accounts (as well as shares) for fixed, minimum, or indefinite periods of time and to issue passbooks, time certificates of deposit, or other evidences of such deposits or accounts as permitted by their charters or by regulations of the Federal Home Loan Bank Board. All instruments issued pursuant to this provision would have the same priority in the event of liquidation. That subsection would also permit such associations to borrow money and give security therefor and to issue notes, bonds, debentures, or other securities (except capital stock), subject to authorization by the Board.
Subsection (b) would authorize Federal associations to invest in time deposits, certificates, or accounts in banks insured by the Federal Deposit Insurance Corporation.
Subsection (c) would authorize Federal associations to invest in unsecured loans not exceeding $5,000 to finance the construction of new structures related to residential use (vacation homes). Such authority is in addition to the authority to make such loans for the repair, alteration, or improvement of existing homes.
Subsection (d) would authorize Federal associations to invest in loans for the purpose of mobile home financing, subject to such prohibitions, limitations, and conditions as the Federal Home Loan Bank Board may prescribe by regulation. That subsection would also authorize loans not exceeding $5,000 for the equipping of homes, as well as for their repair, alteration, or improvement, also subject to such prohibitions, limitations, and conditions.
Subsection (e) would authorize Federal associations to invest in loans, guaranteed by AID under section 221 of the Foreign Assistance Act of 1961, on housing projects located in developing countries outside of Latin America. Investment in such loans, together with investment in Latin American loans guaranteed under section 224 of that act, would be subject to a 1-percent-of-assets limitation.
Subsection (f) would authorize Federal associations to invest in loans to federally supervised financial institutions or to brokers or dealers registered with the Securities and Exchange Commission, if such loans are secured by loans, obligations, or investments in which the Federal association has statutory authority to invest directly. Section 1717. Federal Home Loan Bank Act
This section amends section 12 of the Federal Home Loan Bank Act to permit Federal home loan banks, subject to the regulations of the Board, to invest in housing project loans or interests therein having the benefit of any guarantee under section 221 of the Foreign Assistance Act of 1961. The section also authorizes investments in loans or interests therein having the benefit of any guarantee under section 224 of the Foreign Assistance Act of 1961. The latter section relates to guarantees of loan investments in pilot or demonstration private housing projects, credit institutions furnishing home mortgage financing, lower-income housing projects, and certain other housing investments in Latin America of types intended to foster the development of local capital-generating enterprises. This section is not intended to confer any investment authority on Federal savings and loan associations or
any other members of Federal home loan banks that they would not have in the absence of this section.
Section 1718. Federal Reserve Act
This section amends section 24 of the Federal Reserve Act to authorize construction loans up to 36 months in length as an exception to the limitation on real estate loans, to permit national banks to continue to purchase participations in existing mortgages, and to provide that loans by national banks shall not be considered real estate loans if the bank looks primarily for repayment out of the income of the borrowers or to security other than real estate even though the bank takes real estate mortgages as additional security for such loans.
Section 1719. Low-rent public housing-Corporate status
This section amends the U.S. Housing Act of 1937 to eliminate the provisions which presently confer corporate status upon the public housing entity in the Department of HUD, and to vest directly in the Secretary the necessary functions, powers, and duties for the low-rent public housing program. It also permits the retirement and return to the Treasury of the $1 million capital stock of such entity. Section 1720. Special studies of savings and loan industry
This section amends that part of chapter IV of the Second Supplemental Appropriation Act, 1966, which relates to expenses necessary for special studies of the savings and loan industry, to extend the completion date of these studies from December 31, 1968, to December 31, 1969.
Section 1721. Small Business Act
This section extends the provisions of the Small Business Act to include the Trust Territory of the Pacific Islands.
Section 1722. Technical amendments
Subsection (a) amends section 110 (c) of the Housing Act of 1949 to make it clear that urban renewal project funds can be used for "the restoration of acquired properties of historical or architectural value."
Subsection (b) amends section 110 (d) of the Housing Act of 1949 to make it clear that grant-in-aid credit can be given for expenditures by a public body for the construction of foundations and platforms on air rights sites in urban renewal projects to the same extent that such work could now be done with project funds.
Subsection (c) amends section 110(e) of the Housing Act of 1949 to make it clear that the restoration of historic properties can be carried out as an urban renewal project cost for those projects approved for three-fourths Federal grant assistance on a limited project cost basis
Subsection (d) amends section 1101 (c) (3) of the National Housing Act to permit amortization of the mortgage term under the medical group practice facilities program to commence after completion of construction of the facility rather than at the time the mortgage is executed.
Subsection (e) amends section 213 (o) of the National Housing Act to clarify the authority of the Secretary to invest all moneys, not currently needed for the operation of the cooperative management housing insurance fund, in Government bonds or obligations, or in the pur
chase on the open market of debentures which are the obligation of the fund.
Subsection (f) amends section 810(e) of the National Housing Act to permit an individual, who is approved by the Secretary, to be a mortgagor under the FHA section 810 housing program for military personnel, or employees or personnel of NASA or AEC research or development installations.
Subsection (g) amends section 220 (d) (2) (B) of the National Housing Act to permit entities, other than corporations, restricted as to rents, charges, capital structure, rate of return, or methods of operation, to qualify for the higher maximum mortgage amount that corporations so regulated now qualify for.
VA AND FHA HOUSING AMENDMENTS
[Public Law 90-301, approved May 7, 1968]
To amend chapter 37 of title 38 of the United States Code with respect to the veterans' home loan program, to amend the National Housing Act with respect to interest rates on insured mortgages, and for other purposes
HISTORY OF LEGISLATION
H.R. 10477 was introduced in the House of Representatives on June 1, 1967 by Mr. Teague of Texas. The bill was subsequently considered and reported by the Veterans' Affairs Committee of the House of Representatives on March 13, 1968 (H. Rept. 1171). The measure was considered and passed by the House on March 26, 1968, and was sent to the Senate where it was referred to the Banking and Currency Committee on March 27, 1968. The bill was subsequently considered and amended by the committee and reported by Senator Sparkman on April 10, 1968 (S. Rept. 1090). H.R. 10477, as amended, was considered and passed by the Senate on April 19, 1968, and sent to the House of Representatives. On April 30, 1968, the House concurred in the Senate amendments and further amended the bill and returned it to the Senate. The Senate concurred in the House amendment on April 30.
H.R. 10477 was approved by the President on May 7, 1968, becoming Public Law 90-301.
DIGEST OF STATUTE
Section 1.-Amends sections 1810(c) and 1811(d) of title 38, United States Code, to increase the maximum amount of guarantee on VA-guaranteed home loans from $7,500 to $12,500.
Section 2.-Amends section 1810(b) of title 38, United States Code, to permit an eligible veteran to pay as the sales price of a home purchase such amount in excess of the reasonable value as the veteran may determine.
Section 3-Amends several sections of the National Housing Act to provide authority until October 1, 1969, to the Secretary of Housing and Urban Development to set the interest rate on all (single and multifamily) FHA mortgage insurance programs (excluding the title I home improvement loan program) at a rate necessary to meet
the mortgage market. (Pursuant to sec. 5(b) of Public Law 89-358, approved March 3, 1966, the Administrator of the VA may set the interest rate at a level which is necessary to meet the mortgage market except that such rates shall never exceed the rate set by the Secretary of HUD for FHA sec. 203(b) mortgages. Thus, by permitting the Secretary of HUD authority to set FHA interest rates at a level that is necessary to meet the market, the Veterans Administrator could establish the VA rate at a level no higher than the rate prescribed by the Secretary of HUD for sec. 203(b) mortgages.
Section 3 also amends sections 207 (regular rental housing), 213 (cooperative housing), 231 (housing for the elderly), 234 (condominiums) of the National Housing Act to increase the statutory interest rate on mortgages insured under these sections to 6 percent.
Section 4.-Establishes a commission to study mortgage interest rates and to make recommendations to assure the availability of an adequate supply of mortgage credit at reasonable cost to the consumer. Section 5.-Adds a new section 1827 to chapter 37 of title 38, United States Code, to provide aid to distressed veteran home buyers who after relying on VA or FHA construction standards find structural defects in their properties.
EFFECT OF RAILROAD MERGERS ON COMMUTER
On March 26, 27, and 28, 1968, the Housing and Urban Affairs Subcommittee held open hearings on the effect of railroad mergers on commuter transportation. These hearings were exploratory in nature in order to obtain information that might provide some help or solutions to some of the problems of urban mass transportation. At the conclusion of the hearings, the hearing record was printed.