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Coverage will be available initially for one- to four-family dwellings and small business establishments but is to be extended to additional types and classes of property as found feasible by the Secretary. In the case of dwellings, the insurance limit, where the rate is less than the full risk rate, will be $17,500 for any single dwelling and $30,000 for a two- to four-family structure, plus $5,000 per dwelling for contents. Small business properties can be insured for up to a total of $30,000 for the structure and $5,000 for the contents of each individual business. These limits may be doubled upon the payment of full premium rates for the coverage in excess of such limits by the insured property owner. Availability of flood insurance in a given area will require a study of that area for the purpose of setting rates.

The Secretary is directed to develop criteria designed to encourage the adoption of State and local measures to restrict the development of land which is exposed to flood damage, guide development of proposed construction away from locations threatened by flood hazards, assist in reducing damage caused by floods, and otherwise improve land management and use of flood-prone areas.

After June 30, 1970, no new flood insurance coverage can be provided in any area unless an appropriate public body has adopted permanent land use and control measures which the Secretary finds are consistent with the criteria he has prescribed for land management and use in flood-prone areas.

The Secretary is directed to appoint a flood insurance advisory committee.

The face amount of flood insurance coverage outstanding and in force at any one time is limited to $2.5 billion.

The flood insurance program will go into effect 120 days following the date of enactment unless the Secretary prescribes a later effective date, not to exceed 180 days from the date of enactment.

The Secretary of HUD is authorized to undertake studies for the purpose of determining the extent to which insurance protection against earthquakes, or other natural disaster perils, other than flood, is not available, and the feasibility of such insurance protection being made available.

TITLE XIV-INTERSTATE LAND SALES

The "Interstate Land Sales Full Disclosure Act" enacted by title XIV makes it unlawful for any developer to sell or lease, by the use of the mail or by any means in interstate commerce, any lot in any subdivision (defined as one with 50 or more lots for sale as part of a common promotional plan) unless

(1) There has been filed with the Secretary of HUD a statement of record listing certain required information about the ownership of the land, the state of its title, its physical nature, the availability of roads and utilities, and other matters; and

(2) A printed property report, containing pertinent extracts from the statement of record, is furnished to the purchaser in advance of the signing of an agreement for purchase or lease. These requirements do not apply to any subdivision where the property is clear of all liens and if every purchaser has personally inspected the lot which he purchased, as evidenced by a written affirmation by the developer.

Any contract for the purchase or lease of a lot covered by this act is voidable at the option of the purchaser if he was not furnished with a property report at least 48 hours in advance of his signing the contract. If the property report was received by the purchaser less than 48 hours in advance of his signing the contract, it is voidable for a period of 48 hours after the signing unless he stipulates in writing that he has read the report and inspected the lot before he signed the

contract.

Violation of these requirements is subject to criminal penalties of imprisonment for not more than 5 years, or a fine of not more than $5,000, or both. Broader civil remedies than heretofore available are also provided. A suit for damages may be brought in any State or Federal court for the district in which the defendent may be found or in which the transaction took place. The Secretary is authorized to seek an injunction against any developer he can show is violating or about to violate the law.

In carrying out his responsibilities under this legislation, the Secretary is required to cooperate with State authorities charged with the responsibility of regulating the sale of lots in subdivisions.

This act does not become effective until 270 days after enactment.

TITLE XV-MORTGAGE INSURANCE FOR NONPROFIT HOSPITALS

This title establishes a new FHA program (sec. 252 of the National Housing Act) under which the Secretary of HUD will insure mortgages covering new or rehabilitated hospitals (including initial equipment). The mortgage may not exceed $25 million or 90 percent of replacement cost and the hospital must be owned and operated by one or more nonprofit organizations. (Recently completed hospitals not yet permanently financed are eligible subject to a limit of $20 million on the aggregate of such mortgages.)

TITLE XVI-HOUSING GOALS AND ANNUAL HOUSING REPORT

Reaffirmation of national goal

The Congress finds that the supply of the Nation's housing is not increasing rapidly enough to meet the national housing goal and reaffirms this goal. It determines that it can be substantially achieved within the next decade by the construction or rehabilitation of 26 million housing units, 6 million of these for low- and moderate-income families.

Report outlining plan

Not later than January 15, 1969, the President is required to make a report to the Congress setting forth a plan to be carried out over the next 10 years for the elimination of all substandard housing and the realization of the national housing goal. The report shall, in addition, contain a projection of the residential mortgage market needs and prospects during the coming year, including an estimate of the requirements with respect to the availability, need and flow of mortgage funds, together with recommendations for encouraging the availability of funds.

Periodic reports

On January 15, 1970, and on each succeeding year through 1979, the President is required to submit to the Congress a report of results

achieved in the provision of housing, and recommendations for legislation or additional administrative action that may be needed to achieve the objectives of the President's plan.

Commission on Mortgage Interest Rates

Funds appropriated and available for studies of housing markets and credit under laws previously enacted in 1948 and 1956 are made available for expenses of the Commission on Mortgage Interest Rates to study mortgage interest rates. This Commission was established by Public Law 90-301.

Model cities

TITLE XVII-MISCELLANEOUS

The authorization for supplemental grants for model cities is increased by $1 billion for fiscal year 1970, and an additional $12 million is authorized for fiscal year 1969 for grants for planning model cities programs. Amounts authorized but not appropriated are made available for appropriation for any succeeding fiscal year commencing prior to July 1, 1970.

Urban renewal demonstration grant program

Urban renewal demonstration grants are authorized to be made to nonprofit organizations. Under prior law these grants were available only for public bodies.

The limit on the amount of urban renewal demonstration grants is increased from two-thirds of the cost of the undertakings to 90 percent of the cost. The amount of funds available for these grant: is increased from $10 million to $20 million.

Authorization for urban information and technical assistance service

program

The authorization for grants to States to assist in the provision of urban information and technical assistance is increased by $5 million for fiscal year 1969, and by $15 million for fiscal year 1970. Amounts authorized for these grants but not appropriated are authorized to be appropriated for any succeeding fiscal year commencing prior to July 1, 1970.

Advances in technology in housing and urban development

Such sums as may be necessary are authorized to be appropriated, commencing with fiscal year 1969, for studies of new and improved techniques and methods of applying advances in technology to housing construction and rehabilitation, and to urban development. Fouryear contracts are authorized for such studies rather than 2-year contracts as heretofore authorized.

College housing

The college housing direct loan program is expanded to add a new program to provide financial assistance by means of annual debt service grants. The new grant program is to be used to reduce the borrower's annual debt service payments on private market loans to the average annual debt service that would have been required if the loan were based on the rate charged on loans under the direct loan program. Annual grants can be made over a fixed period up to 40 years. Annual grant contracts for assistance payments are authorized, subject to approval in appropriation acts, in the amount of $10 million in this fiscal year which amount is increased by $10 million on July 1, 1969.

Both the loan and new grant program are made available for the purchase of existing properties which are in need of little or no rehabilitation.

Federal-State training programs

The Federal-State training program is broadened to permit grants to States for the training of subprofessional (heretofore limited to professional) persons who will be employed in the field of housing as well as community development. The trainees may be trained for employment by private nonprofit organizations which have responsibility for housing and community development programs, in addition to public organizations. Guam, American Samoa, and the Trust Territory of the Pacific Islands are made eligible for grants under the program.

Additional Assistant Secretary of Housing and Urban Development

An additional Assistant Secretary of Housing and Urban Development is authorized.

Self-help studies

Grants are authorized to be made under the low-income housing demonstration program for studies of self-help in the construction, rehabilitation, and maintenance of housing for low-income persons and families and the methods of selecting, involving, and directing them in self-help activities. The Secretary of HUD is required to report to Congress within 1 year on the results of any such studies. Savings and loan associations

Federal savings and loan associations are authorized to refer to their share accounts as "savings deposits" and to borrow through the issuance of bonds and other obligations.

Their lending and investment powers are liberalized and broadened by authorizing them to invest in:

Time deposits, certificates or accounts in banks insured by the FDIC;

Loans to finance mobile homes;

Unsecured loans not exceeding $5,000 to finance the construction of new structures relating to residential use;

Loans not exceeding $5,000 for the equipping of homes; Loans guaranteed by AID on housing projects located in developing countries outside of Latin American; and

Loans to federally supervised financial institutions or brokers or dealers registered with the SEC, if the loans are secured by loans, obligations or investments in which the Federal association has statutory authority to invest directly.

Federal Home Loan Bank Act

Federal home loan banks are authorized to invest in housing project loans guaranteed under the Foreign Assistance Act of 1961.

Federal Reserve Act

Section 24 of the Federal Reserve Act is amended to authorize construction loans by national banks up to 36 months in length (previously limited to 24 months) as an exception to the limitation on real estate loans.

National banks are permitted to continue to purchase participations in existing mortgages, and it is made clear that loans by national banks are not to be considered as real estate loans where the bank looks primarily for repayment out of security other than real estate.

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