Section 902. Creation of corporations

This section authorizes the creation of a private corporation for profit (the "corporation"). It also authorizes the President to create one or more additional corporations to carry out the purposes of the title when he finds it in the national interest to do so.

Section 903. Process of organization

This section authorizes the President, by and with the advice and consent of the Senate, to appoint incorporators who will take such action as may be necessary or appropriate to establish the corporation, will serve as its initial board of directors, and will arrange for an initial stock offering.

Section 904. Directors

This section provides that the Corporation is to have a 15-member board of directors; three members are to be appointed by the President by and with the advice and consent of the Senate, to serve for 3-year terms, and the other 12 are to be elected by the stockholders. Section 905. Financing the corporation

This section authorizes the corporation to issue shares of stock in such number and of such types as may be permitted in its articles of incorporation.

Section 906. Purposes and powers of the corporation

This section authorizes the corporation to engage in specified activities appropriate to the provision of housing and related facilities primarily for low or moderate income persons, with or without the use of Federal programs. It also authorizes the corporation to enter into and participate in all forms of partnerships and associations, to conduct research and study projects, to provide technical assistance, and to provide financing assistance to other organizations in connection with its activities. The corporation is to have the usual powers conferred upon a stock corporation by the District of Columbia Business Corporation Act. Nothing in title IX is to have the effect of waiving the Davis-Bacon Act or any other law requiring compliance with labor standards, to the extent that such act or law would otherwise apply.

Section 907. National housing partnership

This section authorizes the corporation to form a limited partnership (the "partnership") in which the corporation is the general partner and each of the corporation's stockholders may be limited partners. The partnership is authorized to conduct the same activities as those authorized for the corporation for the purpose of engaging in low and moderate income housing undertakings in particular localities. The partnership investment in any such undertaking may generally not exceed 25 percent of the initial equity investment.

Section 908. Report to Congress and records

This section directs the corporation to submit annual reports to the President for transmittal to the Congress, and requires that its accounts be audited annually by independent accountants.

Section 909. Antitrust laws

This section makes it clear that activities of the corporation, the partnership, and other participants in the title IX program are subject to the Federal antitrust laws.

Section 910. Right to repeal, alter, or amend

This section reserves to the Congress the right to repeal, alter, or amend the title at any time.

Section 911. Amendment to banking laws

This section amends section 5136 of the Revised Statutes to permit national banks to invest in the corporation, the partnership, or any other entity formed under the title.

TITLE X-RURAL HOUSING

Section 1001. Loans to provide occupant-owned, rental, and cooperative housing for low and moderate income persons and families This section adds to title V of the Housing Act of 1949 a new section 521, authorizing direct and insured loans to provide in rural areas (places with 5,500 population or less) occupant-owned housing for low and moderate income persons and families and rental and cooperative housing for low and moderate income persons and families or elderly persons and families, where assistance is not available from other sources including the new HUD section 235 and 236 programs added by the bill. Interest is to be at a rate (not less than 1 percent) set by the Secretary of Agriculture after considering the annually determined cost of money to the Treasury (for U.S. obligations of comparable maturities) and the payment ability of the applicants. An interest supplement in such amount as may be necessary to market the insured loans will be paid from, and reimbursed by annual appropriations to, the rural housing insurance fund. Eligibility is broadened to include such persons and families not previously residing in rural

areas.

Section 1002. Housing for rural trainees

This section adds to title V of the Housing Act of 1949 a new section 522, authorizing financial and technical assistance to provide housing and related facilities in rural areas for trainees (and their families) who are enrolled in federally assisted training courses to improve their employment capability, where such housing and facilities could not be reasonably provided in any other way. Sites would be selected only after a labor area survey and with full coordination among all Federal agencies having related responsibilities. The financial assistance would be in the form of advances, which (if for land purchase) would be repayable with interest over periods not longer than 33 years or (in other cases) would be nonrepayable or repayable with or without interest, depending on the applicant's payment ability. Interest is to be at a rate (not less than 1 percent) set by the Secretary of Agriculture after considering the annually determined cost of money to the Treasury (for U.S. obligations of comparable maturities) and the payment ability of the applicants.

Section 1003. Appropriations

This section amends section 513 of the Housing Act of 1949 to authorize appropriations to the Secretary of Agriculture for the cost of

administering in rural areas the new section 235 and 236 programs added by the bill. A reasonable portion of the authority to enter into contracts thereunder is to be transferred to the Secretary of Agriculture for use in these areas.)

Section 1004. Purchase of land for building sites .

This section amends section 514(f) (2) of the Housing Act of 1949 to broaden the eligible purposes of domestic farm labor housing loans under section 514 to include the purchase of necessary land for building sites.

Section 1005. Mutual and self-help housing

This section adds to title V of the Housing Act of 1949 a new section 523, authorizing the Secretary of Agriculture to make grants to (or enter into contracts with) public or private nonprofit organizations to pay part or all of the cost of developing programs to carry out mutual or self-help housing efforts and to coordinate necessary technical and supervisory assistance. A self-help housing land development fund is authorized to provide a source of short-term funds to public or private nonprofit organizations to buy and develop building sites to be sold to families, nonprofit organizations, and cooperatives eligible for assistance under section 235 or 236 of the National Housing Act or section 521 of the Housing Act of 1949.

The Secretary is also authorized to make loans to needy low-income participants for the acquisition and development of land and the purchase of necessary materials; the loans would bear interest at not more than 3 percent and have terms of not more than 33 years. Appropriations not over $5 million a year are authorized for the purposes of the new program, and no commitment can be entered into after June 30, 1973. The section authorizes appropriations to the new self-help revolving fund not to exceed $1 million for fiscal year 1969 and not to exceed $2 million for fiscal year 1970.

TITLE XI-URBAN PROPERTY PROTECTION AND REINSURANCE

Section 1101. Short title

This section provides that title XI may be cited by its short title the "Urban Property Protection and Reinsurance Act of 1968." Section 1102. Findings and declaration of purpose

Subsection (a) sets forth a finding by the Congress that the unavailability of property insurance in inner city areas is accelerating the deterioration and threatening the economic well-being of cities, and that the unavailability of riot loss reinsurance makes adequate property insurance even more difficult to obtain.

Subsection (b) states that the purpose of title XI is to encourage the development of statewide programs to increase the availabiltiy of property insurance, and to provide Federal reinsurance with appropriate State sharing in reinsured riot losses.

Section 1103. Amendment of the National Housing Act

This section adds to the National Housing Act a new title XII, establishing the national insurance development program.

TITLE XII-NATIONAL INSURANCE DEVELOPMENT PROGRAM

Section 1201. Program authority

Authorizes the Secretary of HUD to establish and carry out the programs provided for in the title, and provides that the powers of the Secretary will terminate on April 30, 1973, except to the extent necessary to continue reinsurance until April 30, 1976, and to complete liquidation in accordance with a plan approved by Congress.

Section 1202. Advisory board; meetings, duties, compensation, and expenses

Establishes a 19-member advisory board appointed by the Secretary, who would also designate the chairman and vice chairman, to represent the general public, the insurance industry, State and local governments, and the Federal Government. No more than six members of the Board would be from the Federal Government, no less than four would be representatives of the private insurance industry, and no less than four would be representatives of State insurance authorities. The Board would review general policies, advise the Secretary, and perform other functions specified in the title.

Section 1203. Definitions

This section defines (1) "environmental hazard" to mean insurance hazards beyond the control of the property owner; (2) "essential property insurance" to mean insurance against direct loss to property as defined and limited in standard fire and extended coverage policies, as approved by the State insurance authority, and insurance for such types, classes, and locations of property against the perils of vandalism, malicious mischief, burglary, or theft, as the Secretary shall designate, but such insurance could not include automobile insurance or such types of manufacturing risks excluded by the State insurance authority; (3) "inspection facility" to mean any rating bureau or other person designated by the State insurance authority to perform inspections under the plans set forth in part A; (4) "insurer" to include insurance companies authorized to engage in the insurance business under State law; (5) "pool" to mean a pool or association of insurance companies formed to make property insurance more readily available; (6) "losses resulting from riots or civil disorders" to mean losses resulting from riots or civil disorders under policies for standard lines of property insurance for which reinsurance is offered as determined under regulations of the Secretary; (7) "property owner" to mean any person having an insurable interest in real or personal, or mixed real and personal property; (8) "person" to include any individual or group of individuals, corporation, partnership, association, or any organized group of persons; (9) "reinsured losses" to mean losses on reinsurance claims and expenses incurred in connection therewith; (10) "standard line of property insurance" to include fire and extended coverage, vandalism and malicious mischief, other allied lines of fire insurance, burglary and theft, those portions of multiple peril policies covering perils similar to the foregoing, inland marine, glass, boiler and machinery, ocean marine, aircraft, physi

cal damage, and such other lines as the Secretary may designate; (11) "State' to mean the several States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the territories and possessions, and the Trust Territory of the Pacific; (12) "urban area" to include any municipality or political subdivision of a State subject to population limits and such additional areas as are designated by the State insurance authority; and (13) "year" as a calendar year, fiscal year, or other period of 12 months as designated by the Secretary. The Secretary would be authorized to define any technical or trade term.

Part A-Statewide Plans To Assure Fair Access to Insurance Requirements

Section 1211. Fair plans

Subsection (a) requires every insurer reinsured by the Secretary to cooperate with the State insurance authority, in each State in which it acquires reinsurance, in establishing and carrying out statewide plans to assure fair access to insurance requirements (Fair plans).

Subsection (b) provides that these plans, which must be approved by, and administered under the supervision of, the State insurance authority or authorized by State law, are to be designed to make essential property insurance more readily available in all urban areas in the State. Such plans may vary from State to State because of local conditions, but all plans must include provisions that

(1) No insurance risk shall be written at a surcharged rate or be denied "essential property insurance" unless there is first an inspection of the property by an inspection facility, without cost to the owner of the property, and a determination made that the risk is not insurable at the applicable premium rate;

(2) Inspections under the plan may be requested (in writing or otherwise) by a property owner (anyone with an insurable interest) his representative, or by an insurer, agent, broker, or other producer;

(3) The owner of the building need not be present during an inspection for a tenant seeking insurance to obtain an inspection;

(4) A copy of the inspection report will be promptly sent to an insurer after an inspection;

(5) The insurer will promptly process the application for insurance after the inspection report is received and will promptly return to the inspection facility a copy of the inspection report and a copy of an action report setting forth the amount of coverage the insurer agrees to write. If the insurer agrees to write the coverage with a surcharge, if any is authorized, it must also state the improvements that must be made to the property before it will provide coverage at an unsurcharged rate; if the insurer agrees to provide coverage on condition that certain improvements are made, it must state what improvements are required, as well as the amount