year 1970 and by an additional $100 million beginning with fiscal year 1971.

Subsection (b) amends section 101 (b) of the 1965 act to make rent supplement payments available to private nonprofit entities, limited dividend entities, and cooperative housing corporations which own certain rental or cooperative housing projects financed with assistance under a State or local program and which are approved for rent supplement purposes prior to the completion of the construction or rehabilitation involved.

Part B-Low-Rent Public Housing

Section 203. Increased low-rent public housing authorization

Subsection (a) amends section 10(e) of the U.S. Housing Act of 1937 to increase the authorization for annual contribution contracts under the low-rent public housing program by $100 million on the date of enactment, and by an additional $150 million on July 1 in each of the years 1969 and 1970.

Subsection (b) amends section 20 of the 1937 act to modify the method of computing HUD's use of borrowing authority under the public housing program, including a provision allowing the President to increase the present $1.5 billion limit on such authority.

Section 204. Upgrading management and services in public housing projects

This section amends section 15 of the U.S. Housing Act of 1937 to authorize the Secretary of HUD to enter into grant contracts with local housing authorities to assist them in upgrading their management activities and providing tenant services to families living in lowrent housing projects, with a preference for programs providing for maximum tenant participation in the development and operation of such tenant services. Tenant services include: Counseling on household management, housekeeping, budgeting, money management, child care, and similar matters; advice as to resources for job training and placement, education, welfare, health, and other community services; services which are directly related to meeting tenant needs and providing a wholesome living environment; and referral to appropriate agencies when necessary for the provision of such services. Existing public and private agencies would be used for the provision of such services to the maximum extent available and appropriate. Appropriations of $15 million for fiscal year 1969 and $30 million for fiscal year 1970 are authorized.

Section 205. Purchase of units by tenants

This section amends section 15 (9) of the U.S. Housing Act of 1937 to permit a local housing authority to sell any low-rent housing unit to a tenant if such unit is suitable for individual ownership. (Under existing law tenants may purchase under this provision only units which are detached or semidetached.)

Section 206. Public housing in Indian areas

This section amends sections 1 and 10(a) of the U.S. Housing Act of 1937 to permit public housing assistance for Indian families who live on or adjacent to their farmland.

Section 207. Limitation on high-rise structures in low-rent public housing projects

This section amends section 15 of the U.S. Housing Act of 1937 to provide that, except in the case of housing predominantly for the elderly, the Secretary is not to approve high-rise elevator projects for families with children unless there is no practical alternative. Section 208. Sale to tenants of low-rent housing in private accommodations

This section amends section 23 of the U.S. Housing Act of 1937 to authorize a local housing authority to purchase a structure containing low-rent housing in private accommodations for the purpose of reselling the structure to the tenant or tenants, or to a group of tenants occupying units aggregating in value at least 80 percent of the structure's value, on such terms and conditions as may be necessary to enable the tenants involved to make the purchase without undue financial hardship. Housing purchased by the local agency under this provision would not be subject to the workable program requirement or certain other requirements otherwise generally applicable to low-rent housing. Section 209. Additional subsidy for large families and families of unusually low income

This section amends sections 2(2) and 10 (a) of the U.S. Housing Act of 1937 to provide an additional annual $120 subsidy for large families (i.e., families with four or more minors) and for families of unusually low income (i.e., families whose incomes are so low that they could not be housed without the additional subsidy). Such an additional subsidy is presently provided only for the elderly and the displaced.

Section 210. Prohibition against certain limitations on types or categories of low-rent housing in private accommodations

This section amends section 23 (d) of the U.S. Housing Act of 1937 to prohibit the Secretary of HUD from prescribing by regulation any limitations on section 23 low-rent housing in private accommodations, other than the limitations specifically provided for in section 23, that would prevent any types or categories of structures in an area from qualifying for use under the section 23 program.

TITLE III-FEDERAL HOUSING ADMINISTRATION INSURANCE OPERATIONS

Section 301. Mortgage insurance premiums for servicemen and their widows

This section amends section 222 of the National Housing Act to permit the transfer to that section of mortgage insurance covering a single-family dwelling, or a one-family unit in a condominium project, where the mortgage has been assumed by a serviceman, so that the mortgage insurance premiums can be paid by the Secretary of Defense (or the Secretary of Transportation) in accordance with the existing provisions of that section. It also provides that the payment of these premiums is to continue on behalf of the serviceman's widow, when he dies on active duty, for 2 years beyond the date of his death or until the date the widow disposes of the property, whichever occurs first.

Section 302. Modifications in terms of insured mortgages covering multifamily projects

This section adds to title II of the National Housing Act a new section 239, providing that the Secretary of HUD may consent to any extension or modification of an insured mortgage covering multifamily housing only under and in conformity with regulations prescribed by him. Such regulations must provide that during the period of any such extension or modification the mortgagor will be required to place in trust any income from the project in excess of its operating needs, subject to criminal penalties; except that the Secretary may consent to an extension or modification of a mortgage without regard to this requirement if he determines that it would not jeopardize the interests of the United States.

Section 303. Condominiums

Subsection (a) amends section 234 (c) of the National Housing Act to authorize FHA insurance for individual units in a 2-to-11-unit condominum project without requiring that the project be first covered by an FHA project mortgage.

Subsection (b) amends section 234 (c) of the act to decrease from 25 to 20 percent the portion of the value of a unit in a condominium project in excess of $20,000 which must be included in the downpayment (thereby conforming the condominium formula to the regular section 203 (b) program).

Subsection (c) amends section 234 (f) of the act to permit insurance of a condominium project mortgage covering four or more units (instead of five or more as at present).

Section 304. Insurance of loans for purchase of fee simple title from lessors

Subsection (a) adds to title II of the National Housing Act a new section 240 authorizing the Secretary of HUD to insure a loan made to a homeowner to finance the purchase of fee simple title to property on which his one-, two-, three-, or four-family home is located, in cases where the homeowner has only a leasehold interest in the land. An insurable loan could not exceed $10,000 per family unit and (when added to any outstanding indebtedness) could not create a total indebtedness in excess of the applicable section 203 (b) limit.

Subsection (b) amends section 5 (c) of the Home Owners' Loan Act of 1933 to permit savings and loan associations to invest in loans insured under the new section 240 program.

Section 305. Extension of section 221 (d) (2) sales housing program for two-, three-, and four-family residences to all low and moderate income families

This section amends section 221 (d) (2) of the National Housing Act to authorize FHA insurance for mortgages secured by two-, three-, and four-family properties occupied by the owner for all low and moderate income families. (Under existing law section 221(d) (2) mortgage insurance is available on properties of these types only where the mortgagor occupying one of the units is a displaced family.) Section 306. Removal of dividend restriction for nondwelling facilities in section 221 projects

This section amends section 221 (f) of the National Housing Act to remove the requirement that the mortgagor of a section 221 multi

family market-rate project in an urban renewal area must waive dividends on its equity investment in any nondwelling facilities which are designed to serve nonresidents of the project.

Section 307. Supplemental loan program for projects financed with Federal Housing Administration insured mortgages

This section adds to title II of the National Housing Act a new section 241, authorizing FHA insurance of supplemental loans to finance improvements and additions to FHA-insured multifamily projects. including nursing homes and group practice facilities and their equipment. Such a loan could not exceed 90 percent of the estimated value of the required improvements, additions, and equipment, and could not, when added to the outstanding balance of the project mortgage, exceed the maximum mortgage amount permitted under the section or title pursuant to which the original mortgage was insured. Any such loan would be governed by the labor standards provisions under section 212 of the National Housing Act applicable, at the time the commitment to insure the supplemental loan is issued, to the section or title pursuant to which the original mortgage was insured.

Section 308. Home improvement loans-increase in maximum maturity, finance charge, and loan amount

This section amends section 2(b) of the National Housing Act to increase the maximum loan amount under FHA's home improvement loan program from $3,500 to $5,000, and to increase the maximum maturity of loans under such program from 5 years and 32 days to 7 years and 32 days. It also increases the maximum permissible financing charge on the first $2,500 of such a loan from $5 to $5.50 discount per $100 of the original face amount of the loan, and on the remainder of such a loan from $4 to $4.50 discount per $100 of the original face amount.

Section 309. Experimental housing program

This section amends section 233 of the National Housing Act to make FHA's experimental housing program available for use in connection with all FHA programs, thus including the programs of mortgage insurance for land development (title X) and group practice facilities (title XI) as well as the presently covered programs under title II of the act.

Section 310. Term of Federal Housing Administration mortgages for land development

This section amends section 1002(d)(1) of the National Housing Act to increase from 7 to 10 years the maximum maturity of an insured land development mortgage. It also permits the Secretary of HUD to extend the maturity beyond 10 years if he determines unusual or unforeseen circumstances make extension necessary to avoid undue hardship to the mortgagor.

Section 311. Rehabilitated multifamily projects in urban renewal areas This section amends sections 220 (d) (3) (B) and 221(d) (3) (iii) of the National Housing Act to permit FHA insurance thereunder of mortgages covering the purchase of multifamily properties in urban renewal areas where the properties have been rehabilitated by local public agencies. (Under existing law, such insurance is available only

in connection with projects which are newly constructed or substantially rehabilitated after FHA's commitment to insure is issued.) Section 312. Miscellaneous housing insurance

Subsection (a) makes several amendments in section 223 of the National Housing Act to permit the insured refinancing of a mortgage insured under any provision of the National Housing Act as well as insurance of an FHA-insured mortgage assigned to the Secretary of HUD or executed in connection with the sale of property acquired under any provision of such act. (Under existing law, this authority is limited to specific sections which are enumerated in sec. 223.) It also permits payment of an insurance claim in cash rather than debentures in connection with a mortgage assigned to the Secretary or executed in connection with the sale of an acquired property.

Subsection (b) amends section 223 (d) of such act to authorize the Secretary to insure a separate loan covering operating losses under a multifamily mortgage during the first 2 years, instead of adding such excess to the amount of the original mortgage itself, as is presently provided.

Section 313. Supplementary loans for cooperative housing purchased from the Federal Government

This section amends section 213(j) of the National Housing Act to authorize FHA insurance of supplementary loans to housing cooperatives which purchased from the Federal Government wartime housing partly covered by an uninsured mortgage. Such loans would be subject to the regular section 213 (j) supplementary loan limitations, with a maximum maturity of up to 10 years beyond the remaining term of the uninsured mortgage where the loan is for major rehabilitation or modernization and the mortgage is more than 20 years old.

Section 314. Equipment in nursing homes

This section amends section 232 of the National Housing Act to permit the cost of major equipment used in the operation of a nursing home to be included in an FHA-insured nursing home mortgage. Section 315. Flexible interest rates for certain FHA insurance pro

grams

This section amends section 3 (a) of Public Law 90-301 (approved May 7, 1968) to make interest rates under the new programs added by this act subject to the flexible interest rate provisions of that law, which by its terms already applies to all of the FHA mortgage insurance programs in existence on the date of its enactment.

Section 316. FHA section 221 (h) program

Subsection (a) amends section 221 (h) (2) (A) of the National Housing Act to decrease from five to four the minimum number of units in an insurable section 221 (h) project, and to permit section 221 (h) insurance of housing consisting of units in a condominium structure. Subsection (b) amends section 221(h) of such act by adding two new paragraphs which provide that the term "single-family dwelling" (for purposes of both the existing section 221 (h) program and the new program established in section 221 (h) (6) by section 101 (c)) shall include a unit in a condominium structure, and a two-family dwelling which has been approved by the Secretary if one of the units is to be occupied by the owner.