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89th Congress, H. R. 7984

August 10, 1965

An Act

79 STAT. 451.

To assist in the provision of housing for low- and moderate-income families, to

promote orderly urban development, to improve living environment in urban areas, and to extend and amend laws relating to housing, urban renewal, and community facilities.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may Housing and Urbe cited as the "Housing and Urban Development Act of 1965”.

ban Development

Act of 1965. TITLE I-SPECIAL PROVISIONS FOR DISADVANTAGED

PERSONS

FINANCIAL ASSISTANCE TO ENABLE CERTAIN PRIVATE HOUSING TO BE

AVAILABLE FOR LOWER INCOME FAMILIES WHO ARE ELDERLY, HANDI-
CAPPED, DISPLACED, VICTIMS OF. A NATURAL DISASTER, OR OCCUPANTS
OF SUBSTANDARD HOUSING

owner.

SEC. 101. (a) The Housing and Home Finance Administrator (hereinafter referred to as the “Administrator”) is authorized to make, and contract to make, annual payments to a “housing owner” on behalf of "qualified tenants”, as those terms are defined herein, in such amounts and under such circumstances as are prescribed in or pursuant to this section. In no case shall a contract provide for such payments with respect to any housing for a period exceeding forty years. The aggregate amount of the contracts to make such payments shall not exceed amounts approved in appropriation Acts, and payments pursuant to such contracts shall not exceed $30,000,000 per annum prior to July 1, 1966, which maximum dollar amount shall be increased by $35,000,000 on July 1, 1966, by $40,000,000 on July 1, 1967, and by $45,000,000 on July 1, 1968.

(b) As used in this section, the term "housing owner” means a pri- "Housing vate nonprofit corporation or other private nonprofit legal entity, a limited dividend corporation or other limited dividend legal entity, or a cooperative housing corporation, which is a mortgagor under section 221 (d) (3) of the National Housing Act and which, after the 75 Stat. 150. enactment of this section, has been approved for mortgage insurance 12 USC 17151. thereunder and has been approved for receiving the benefits of this section: Provided, That, except as provided in subsection (j), no payments under this section may be made with respect to any property financed with a mortgage receiving the benefits of the interest rate provided for in the proviso in section 221 (d)(5) of that Act. Post, p. 454. Subject to the limitations provided in subsection (i), the term “housing owner" also has the meaning prescribed in such subsection.

(c) As used in this section, the term "qualified tenant” means any "Qualified individual or family who has, pursuant to criteria and procedures tenant." established by the Administrator, been determined

(1) to have an income below the maximum amount which can be established in the area, pursuant to the limitations prescribed in sections 2(2) and 15(1)(b)(ii) of the United States Housing Act of 1937, for occupancy in public housing dwellings; and Post, p. 457. (2) to be one of the following

63 Stat. 422.

42 USC 1415. (A) displaced by governmental action;

(B) sixty-two years of age or older (or, in the case of a family to have a head who is, or whose spouse is, sixty-two years of age or over);

29 STAT. 452.

(C) physically, handicapped (or, in the case of a family, to have a head who is, or whose spouse is, physically handicapped);

(b) occupying substandard housing; or

(E) an occupant or former occupant of a dwelling which is (or was) situated in an area determined by the Small Business Administration, subsequent to April 1, 1965, to have been affected by a natural disaster, and which has been extensively damaged or destroyed as the result of such dis

aster. The terms "qualified tenant" and "tenant" include a member of a cooperative who satisfies the foregoing requirements and who, upon resale of his membership to the cooperative, will not be reimbursed for any equity increment accumulated through payments under this section. With respect to members of a cooperative, the terms "rental" and "rental charges” mean the charges under the occupancy agreements between such members and the cooperative.

(d) The amount of the annual payment with respect to any dwelling unit shall not exceed the amount by which the fair market rental for such unit exceeds one-fourth of the tenant's income as determined by the Administrator pursuant to procedures and regulations established by him.

(e) (1) For purposes of carrying out the provisions of this section, the Adṁinistrator shall establish criteria and procedures for determining the eligibility of occupants and rental charges, including criteria and procedures with respect to periodic review of tenant incomes and periodic adjustment of rental charges. The Administrator shall issue, upon the request of a housing owner, certificates as to the following facts concerning the individuals and families applying for admission to, or residing in, dwellings of such owner:

(A) the income of the individual or family; and

(B) whether the individual or family was displaced by governmental action, is elderly, is physically handicapped, or is (or was) occupying substandard housing or housing extensively damaged

or destroyed as the result of a natural disaster. (2) Procedures adopted by the Administrator hereunder shall provide for recertifications of the incomes of occupants, except the elderly, at intervals of two years (or at shorter intervals in cases where the Administrator may deem it desirable) for the purpose of adjusting rental charges and annual payments on the basis of occupants' incomes, but in no event shall rental charges adjusted under this section for any dwelling exceed the fair market rental of the dwelling.

(3) The Administrator may enter into agreements, or authorize housing owners to enter into agreements, with public or private agencies for services required in the selection of qualified tenants, including those who may be approved, on the basis of the probability of future increases in their incomes, as lessees under an option to purchase (which will give such approved qualified tenants an exclusive right to purchase at a price established or determined as provided in the option) dwellings, and in the establishment of rentals. The Administrator is authorized (without limiting his authority under any other provision of law) to delegate to any such public or private agency his authority to issue certificates pursuant to this subsection.

(4) No payments under this section may be made with respect to any property for which the costs of operation (including wages and salaries) are determined by the Administrator to be greater than similar costs of operation of similar housing in the community where the property is situated.

79 STAT. 453.. (f) Section 101(c) of the Housing Act of 1949 is amended by insert- 68 Stat. 623. ing" (i)" after “a mortgage under" in the first proviso and by inserting 42 USC 1451. immediately before the colon at the end of such proviso the following: ", or (ii) section 221 (d) (3) of the National Housing Act if payments with respect to the mortgaged property are made or are to be made under section 101 of the Housing and Urban Development Act of 1965, except that no such mortgage shall be insured, and no commitment to insure such a mortgage shall be issued, with respect to property in any community for which a workable program for community improvement was required and in effect at the time a contract for å loan or capital grant was entered into under this title, or a contract for annual contributions or capital grants was entered into pursuant to the United States Housing Act of 1937, unless there is a workable program 50 Stat. 888. for commụnity improvement which meets the requirements of this 42 USC 1430. subsection in effect in such community at the time of such insurance or commitment”.

(g) The Administrator is authorized to make such rules and regulations, to enter into such agreements, and to adopt such procedures as He may deem necessary or desirable to carry out the provisions of this section. Nothing contained in this section shall affect the authority of (1) the Federal Housing Commissioner with respect to any housing assisted under this section and under sections 221(d) (3) and 231(c)(3) of the National Housing Act, or (2) the Housing and Home Finance 75 Stat. 150; Administrator with respect to any housing assisted under this section 73 Stat. 665. and under section 202 of the Housing Act of 1959, including the 12 USC 17151, authority to prescribe occupancy requirements under other provisions 1715v. of law or to determine the portion of any such housing which may be 73 stat: -667.

12 occupied by qualified tenants.

(h) There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this section, including, but not limited to, such sums as may be necessary to make annual payments as prescribed in this section, pay for services provided under (or pursuant to agreements entered into under) subsection (e), and provide administrative expenses.

(i) Section 114(c)(2) of the Housing Act of 1949 is amended by 78 Stat. 788. inserting before the colon at the end of the first proviso the following: 42 USC 1465.

or a dwelling unit assisted under section 107 of the Housing and Urban Development Act of 1965".

(j) (1). For the purpose of assisting housing under this section on an experimental basis, subject to the limitations of this subsection, the term "housing owner" (in addition to the meaning prescribed in subsection (b)) includes

(A) a private nonprofit corporation or other private nonprofit legal entity, a limited dividend corporation or other limited dividend legal entity, or a cooperative housing corporation, which is a mortgagor under a mortgage which receives the benefits of the interest rate provided for in the proviso in section 221(d) (5) of the National Housing Act and which, after the date of the enact- Post, p. 454. ment of this Act, has been approved for mortgage insurance under section 221(d) (3) of the National Housing Act and has been approved for receiving the benefits of this section;

(B) a private nonprofit corporation or other private nonprofit legal entity which is a mortgagor under a mortgage insured under section 231(c)(3) of the National Housing Act and which, after the date of the enactment of this Act, has obtained final endorsement of such mortgage for mortgage insurance and has been approved for receiving the benefits of this section; and

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