(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Children's Library | Biodiversity Heritage Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

Full text of "Compilation of the Domestic Housing and International Recovery and Financial Stability Act of 1983"

Google 



This is a digital copy of a book that was preserved for generations on library shelves before it was carefully scanned by Google as part of a project 

to make the world's books discoverable online. 

It has survived long enough for the copyright to expire and the book to enter the public domain. A public domain book is one that was never subject 

to copyright or whose legal copyright term has expired. Whether a book is in the public domain may vary country to country. Public domain books 

are our gateways to the past, representing a wealth of history, culture and knowledge that's often difficult to discover. 

Marks, notations and other maiginalia present in the original volume will appear in this file - a reminder of this book's long journey from the 

publisher to a library and finally to you. 

Usage guidelines 

Google is proud to partner with libraries to digitize public domain materials and make them widely accessible. Public domain books belong to the 
public and we are merely their custodians. Nevertheless, this work is expensive, so in order to keep providing tliis resource, we liave taken steps to 
prevent abuse by commercial parties, including placing technical restrictions on automated querying. 
We also ask that you: 

+ Make non-commercial use of the files We designed Google Book Search for use by individuals, and we request that you use these files for 
personal, non-commercial purposes. 

+ Refrain fivm automated querying Do not send automated queries of any sort to Google's system: If you are conducting research on machine 
translation, optical character recognition or other areas where access to a large amount of text is helpful, please contact us. We encourage the 
use of public domain materials for these purposes and may be able to help. 

+ Maintain attributionTht GoogXt "watermark" you see on each file is essential for in forming people about this project and helping them find 
additional materials through Google Book Search. Please do not remove it. 

+ Keep it legal Whatever your use, remember that you are responsible for ensuring that what you are doing is legal. Do not assume that just 
because we believe a book is in the public domain for users in the United States, that the work is also in the public domain for users in other 
countries. Whether a book is still in copyright varies from country to country, and we can't offer guidance on whether any specific use of 
any specific book is allowed. Please do not assume that a book's appearance in Google Book Search means it can be used in any manner 
anywhere in the world. Copyright infringement liabili^ can be quite severe. 

About Google Book Search 

Google's mission is to organize the world's information and to make it universally accessible and useful. Google Book Search helps readers 
discover the world's books while helping authors and publishers reach new audiences. You can search through the full text of this book on the web 

at |http: //books .google .com/I 



Stanlbrd IMranh Ubrahes 

iiiiiilini 

3 6105 119 609 142 



(COMMITTEE PRINT 98-sT 



/^^ 



>S 



t 



COMPILATION OF THE DOMESTIC HOUSING 

AND INTERNATIONAL RECOVERY AND 

FINANCIAL STABILITY ACT OF 1983 



SUBOOMMITTEE ON HOUSING AND 
COMMUNiry DEVELOPMENT 

OF THE 

COMMITTEE ON BANKING. FINANCE 

AND URBAN AFF.MRS 

HOUSE OF REPRESENTATIVES 

98th Congress, Second Session 




SEPrEMBER iyf<4 



PrlnlL-d roc Ih, »„ of th. Oramitut « Bnoling. Fliaii» onl Urtmn 
AITnire 




yGoot^le 




yGoot^le 



[COMMITTEE PRINT 98-9] 



COMPILATION OF THE DOMESTIC HOUSING 

AND INTERNATIONAL RECOVERY AND 

FINANCIAL STABILITY ACT OF 1983 



SUBCOMMITTEE ON HOUSING AND 
COMMUNITY DEVELOPMENT 



COMMITTEE ON BANKING, FINANCE 

AND URBAN AFFAIRS 

HOUSE OF REPRESENTATIVES 

98th Congress, Second Session 




yGoot^le 



HOUSE COMMITTEE ON BANKING. nNANCE AND URBAN AFFAIRS 

FERNAND J. ST GERMAIN. Rhode IsUnd, Chaimuin 



HENRY B. GONZALEZ. Texas 
JOSEPH G. MINISH. New Jereey 
PRANK ANNUNZIO, lllinoiB 
FARREN J. MITCHELL, Maiyland 
WALTER E. FAUNTROY, Difltrict of 

Columbia 
STEPHEN L. NEAL. North Carolina 
JERBY M- PATTERSON, CBlifomia 
CARROLL HUBBARD, Jr.. Kentucky 
JOHN J. UFALCE. New York 
NORMAN E. D' AMOURS, New Hampehin 
STAN LUNDINE, New York 
MARY ROSE OAKAR, Ohio 
BRUCE F, VENTO. Minnesota 
DOUG BARNARD. Jr., Georgia 
ROBERT GARaA. New York 
MIKE LOWRY, Washington 
CHARLES E. SCHUMER. New York 
BARNEY FRANK, MaBsachuBetts 
BILL PATMAN. Texas 
WILLIAM J. COYNE. Pennsylvania 
BUDDY ROEMER, Louisiana 
RICHARD H. LEHMAN, California 
BRUCE A, MORRISON, Connecticut 
JIM COOPER. Tenneasce 
MARCY KAPTUR, Ohio 
BEN ERDREICH, Alabama 
SANDER M. LEVIN, Michigan 
T HOMA S R. CARPER, Delaware 
ESTEBAN E. TORRES. Caliromia 
OERALD D. KLECZKA. Wisconsin 



CHALMERS P. WYUE. Ohio 

STEWART B. McKlNNEY. Connecticut 

GEORGE HANSEN. Idaho 

JIM LEACH. Iowa 

RON PAUL, Teias 

ED BETHUNE, Arkansas 

NORMAN D. SHUMWAY. California 

STAN PARRIS, Virginia 

BILL McCOLLUM, Honda 

GEORGE C. WORTLEY, New York 

MARGE ROUKEMA. New Jersey 

BILL LOWEBY, California 

DOUG BEREUTER, Nebraska 

DAVID DREIEH. California 

JOHN HILER. Indiana 

THOMAS J. RIDGE. Pennsylvania 

STEVE BARTLETT, Texas 

JACK EDWARDS. AUbama 



Subcommittee on Housing and CoMMUNirv Development 
HENRY B, GONZALEZ, Texas. Chairman 

STEWART B. McKINNEY, Connecticut 
CHALMERS P. WTLIE, Ohio 
Columbia JIM LEACH. Iowa 

ED BETHUNE. Arkansas 
MARGE ROUKEMA, New Jersey 
GEORGE C. WORTLEY, New York 
BILL McCOLLUM. Florida 
BILL LOWERY. California 
DOUG BEREUTER. Nebraska 
DAVID DREIER, California 
JOHN HILER, Indiana 
THOMAS J. RIDGE, Pennsylvania 
STEVE BARTLETT, Texas 



JERRY M. PATTERSON, Califumia 
STAN LUNDINE. New York 
MARY ROSE OAKAR, Ohio 
BRUCE F. VENTO, Minnesota 
ROBERT GAROA, New York 
MIKE LOWRY, Washington 
FARREN J, MITCHELL, Maryland 
CARROLL HUBBARD, Jr.. Kentucky 
NORMAN E, FAMOURS. New Hampehin 
CHARLES E. SCHUMER. New York 
BARNEY FRANK, Massachusetts 
WILLIAM J, COYNE. Pennsylvania 
RICHARD H. LEHMAN, California 
BRUCE A. MORRISON. Connecticut 
JIM COOPER. Tennessee 
MARCY KAPTUR, Ohio 
BEN ERDREICH, Alabama 
SANDER M. LEVIN. Michigan 
THOMAS R. CARPER, Delaware 
ESTEBAN E. TORRES, Califoniia 



yGoot^le 



LETTER OF TRANSMITTAL 



August 1984. 
To: All members of the Committee on Banking, Finance and Urban 
Affairs. 

Treuismitted herewith for the use of the Committee on Banking, 
Finance and Urban Affairs is a compilation of the provisions con- 
tained in Public Law 98-181, an act making supplemental appro- 
priations for the fiscal year ending September 30, 1984, and for 
other purpoees, that were added to this Appropriations Act by ac- 
tions taken by the Senate Committee on Banking, Housing and 
Urbsin Affairs and House Committee on Banking, Finance and 
Urbfui Affairs, entitled "The Domestic Housing and International 
Recovery and Financial Stability Act." 

The congressional action on this legislation was an extraordinari- 
ly unique process for a major piece of legislation: the Senate did 
not take any floor action on the housing authorization portion of 
the legislation; there v/aa no conference on the differing versions of 
the housing authorization bills; separate pieces of legislation deal- 
ing with the Export/Import Bank Act, authorization and appro- 
priations for the International Monetary Fund, authorizations for 
multUaterfil banks, and l^islation dealing with international lend- 
ing supervision were added to this legislation. In addition the final 
congressional action taken on this legislation was of an expedited 
nature. The Senate added all of these provisions to a supplemental 
appropriations bill as Jui amendment to an amendment in techni- 
cal disagreement to H.R. 3959. The House of Representatives ap- 
proved the total package eis part of the rule making in order the 
immediate consideration of H.R. 3959, the Supplemental Appro- 
priations Act of 1984. There was less than an hour of floor debate 
on what was one of the most important and complicated pieces of 
legislation in the first session of the 98th Congress, 

Because of this unique process that we were forced to employ, I 
am publishing this compendium of the major documents regarding 
the many provisions of the Domestic Housing and International 
Recovery and Financial Stability Act so that an accurate legislative 
history can be available to the Members of Congress Emd the 
public. 

Sincerely, 

Fernand J. St Germain, 

Chairman. 



yGoo<^\q 



yGoot^le 



CONTENTS 



Public Law 98-181 

Summary of the portion of the act "The Domestic Housing and International 
Recovery and Financial Stability Act of 1983" 

Summary of Mf^or Issues Resolved between H.R. 1 and S. 1338 

Summarv of L^ialative Actions on Eiport-Import Bank, International Mone- 
tary Fund, International Lending Supervision, and Multilateral Develop- 
ment Bank Portions of H.R. 3959 

Statement by Chairman St Germain 

Statement by Senator Gam 

House Floor Debate on H-R. 1 

House Committee Report 98-123 

House Committee Report 98-123, part 2 

Senate Committee Report 98-142 



yGoot^le 



yGoot^le 



PUBUC LAW 98-181— NOV. 30. 1983 97 STAT. 1153 



Public Law 98-181 
98th Congress 



IT •Ddinc Savtvnbw M H 



Be it rnacltd by tht SenaU and Houte of Rtprttentatiat* of tht 
United Slatta of America in Congnta OMsembled, That the foUowing SupplFmrnUl 

•urn* an eppniprUted, out of any money in the Treasury not Appnraraiior 
othenriM appropriated, to provide nipplemental appropriationa for ^^ 

the fiacal year ending September 30, 1984, and for other purpoeea, 

TTIIjE I 

CHAPTER 1 

DcPAKTIfKNT or HOVOINO AND UUAN DEWLOnUNT 



Title I of the Department of Housing and Urtmn DeveliqHiient- 
Ifidepandent A^nciee Appropriation Act, 19S4 (Public Uw 98-45), 
is amended by inserting before tlM period at the end of the para- 
graph under the beading "Housing tor the elderly or handicapped 
nind" (97 Stat 219, 220) the following: ": Pnvided fuHher. TKat 
notwithstanding section 202(aX3) of the Housing Act of 1959, loons 
made in fiscal year 1984 shall bear an interest rate which does not 
e i c eoJ 9.2S per centum, including the allowance adequate in the 
Judgment of the Secretary to cover administrative costs and prob- 
able loMM under the program". 

EucuTTVs Omcs or nn Pmbidcmt 



For an additional amount for the "Council on Environmental 
Quality and OfHce of Environmental Quality", $600,000 to conduct a 
study to consider and define a National Center for Water Resources 
Rwt B rch. and a studv to define and plan a National Cnearinghouse 
fbr Water Resourcea uformation. 

Pd»XAL ESHKBaENCV MANAOSmNT Aginct 



yGoot^le 



PUBUC LAW 98-181— NOV. i 



D UX^AL ASBtSTANCI 



The Department of Houaing and Urban Development-Independent 
A^nciee Appropriation Act, 1984, under the account. Federal Elmer- 
mncy Management Agenej, State and Local AssUtance, it amended 
by adding the following before the period: ": Provided further. That 
notwithatanding any other provioion of taw for the fiscal year 19S4, 
$55,000,000 ia available for contribution* to the States under section 
205 of the Faderal Civil Defense Act of 1950, as amended (50 U S C. 
App. 2286), for penonnel and administrative expenses". 



For an emerKenn[ food distribution and shelter prcsram to be 
carried out by tne Director of the Federal Emergency hunagement 
KgtBCy. t30,000,000, such sum to remain available for obligation 
until March 31, 19S4, and to be made available under the following 
terms and conditions: 

(1) The Director of the Federal Emergennf Management 
Agency ahall, as soon as practicable afler the date of the 
enactment of this Act, constitute a national board for the 
purpose tX determining how the program ftmds are to be distrib- 
uted to individual locuities. The national board shall consist of 
■even member*. The United Way of America, the Salvation 
Army, the National Council of Churches, the National Confer- 
ence of Catholic Charities, the Council of Jewish Federations. 
Incorporated, the American Red Cross, and the Federal Emer- 
^ncy Management Agency shall each designate a representa- 
tive to sit on the national board. The representative of tiie 
Federal Emergency Management Agency shall serve as chair- 
man of the national board. 

(2) E^h locality designated by the national board to receive 
funds shall constitute a local hoard for the purpose of determin- 
ing how its funds will be distributed. The local board shall 
consist, to the extent practicable, of repr e s e ntatives of the same 
organizations as the national board except that the mayor or 
appropriate head of government will replace the Federal Emer 
gency Management Agency member. 

(3) The Lhrector of the Federal Emergency Managemen. 
Agency shall award a grant for $30,000,000 to the national 
board within thirty days after the date of the enactment of this 
Act for the purpose of providing emergency food and shelter to 
needy individuals through private voluntary organisations. 

(4) Eligible private voluntary organizations shall be nonprofit, 
have a voluntary board, have an accounting system, and prac- 
tice nondiscrimination. 

(5) Participation in the program shall be based upon a private 
voluntary organization's ability to deliver emergency food and 
shelter to needy individuals and such other factors as are 
determined by the local boards. 

(6) Total administrative costs may not exceed 2 percent of the 
total appropriation. 

(7) As authorized by the Charter of the Commodity Credit 
Cori>oration, the Corporation shall process and distribute sur- 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

plus food own«d or to be purchased bj the Corporation under 
the food distribution and emergenn shelter program in cooper- 
ation with the Federal Emergency Management Agency. 

National AKRONAtmcs and Spaci ADuiNisTaATiON 

coNSntucnON o» FACtumM 

For an additional amount for "Construction of facilitiea", 
$20,000,000, to remain available until September 30, 1986, for partial 
funding of the construction of facilitiea at the John P. Kennedy 
Space Center for the Solid Rocket Booeter araembly and refurbish- 
ment contractor and for warehousing to be used by the Shuttle 
procesaing contractor Provided, That with the funds appropriated 
under the "Space flight, control and data oommunicationa" account 
in the 19S4 Housing and Urban Development-Independent Agencies 
Appropriation Act (Public Law 98-45), NASA may enter into a 
contract with Morton Thiokol, Inc., to amortiie the Thiokol Casting 
Pit Covers over a twelve-year period for a total cost of not to exceed 
$23,000,000 under the authority granted under Public Law 98-45. 

VrrDUNS ADUINIBTmATION 



JOBTRAININO 

For an additional amount for payment d expenaea as authorized 
by the Emergency Veterans' Jd) "n^ing Act of 1983 (Public Law 
98-77), $75,000,000, to remain available untU September 30, 1986. 

BHOST TTTLX AND TABLB OT CONTCNTB 

SicnoN 1. (a) Titles I through XI of this Act may be cited as the 
"Domestic Housing and International Recovery and Financial Sta- 

biUty Act". «™„ .^ 

(b) Titles 1 through V of this Act may be dted as the "Housing and ^^[^ 

Urban-Rural Recovery Act of 1983". Stability Act 

TABLE OF CONTENTS ^u*" ^^"^ 

Sk. 1. Short title and table of contmU. Houaingand 

Urban-Rural 

TITLE 1— COHHlJNrrY AND NQCHBORHOOD DEVELOPMENT AND Recovec? Act of 

CONSERVATION 1983. 

„ . ^ ^ ». „ .^ lauaciToi 

Past a— Commuhttt wvaLomDrT Blocs Okaht Paooaui note. 

Sec 101. Low and moderate ioeaoH banefll atijecljn. 



Allocation and distribution cl funda. 

Diacretionary fund. 

Guarantee of loani. 

Uie of (TanU lo Httle outatandiBf urban n 

Tranaition pmriaion*. 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 



Sic 111. Urb*n dtnlepmant •etinn fnnt*. 

Sk. Ill Vibm hnmtalmAint. 

Ste. IZa. NtlchbiFluad^nlBfiDtiitdmcnatistiea. 

Bkc. tZ4. RahabiliUtisB loua. 

Bkc. tZS. NaiclibDrhaod RalnnMmmt Corporatian. 

Sw. IZGRapHlm. 

TITLE n-HOU3INO ASSISTANCE PROGRAMS 
Sm. SOI. AUaedttao uid ina o( uciited beunnc ■uchorin. 
Sk. 202. InenM in tiotla pr« genpucT tuDitaUso. 
Sm. sot. Priarit]r Air boudi* M«M«n 



Sac. sen. VoucbM- damHtntica. 

Sm. 206. RMmnlarsKtioaBccntncta. 

Sm 209. RcpMl of hw nntnictiin authoritj. 

Sm. 210. KnglB ram occupucj baudnf. 

8m. 211. Sharad hnaiiic for tta* Mnlj awl bundiapp^ 

Sm 212. PajnmM tor «antion s< Wnr in 

Sm. 213. laeoow ■lir'^-'i- 

Sm. 2M. DmdIiliM 

Sk. 21G, FinaBdnc 




Sm. 2il. CanBdentioB^utilltjr 



•ntHB tt iiamy wFinwita Bit 
houiuwdiild cuaonnonMnl 
)( fiir tb> Mnit mid huiilica[ 



Sm 224. CoBgn^M m 
Sm 225. Damoiiitntia. 
6k. 226. SkUob Z3S hc„ 
Sm. Z2T. Pet ownenhip in 

TITLE m-RENTAL HOUSING REHABILITATION AND PRODUCTION 



Ssc sot. RenUI nlubiliUd« and dnalopBint cruM. 

~" ~ ' rmiof uHikdnanU U the Hounnf and C 
Act of 19T4. 



c 302 CODfon 



TITLE IV-PROORAM AMENDMENTS AND EXTENSIONS 
Put a— Fdouu. Hounho ADHtHBTBAnim MamMOi bnubuici PaocaAUi 
Subpart 1 — Central Authoritica and RaquireEneiila 
Sm. 401. Eitflnnon of mortgiM iiuuranca pnrrama. 
Sw. 402. Aniount to bi inund uncln- th* Natxna] Hoiuinf AcL 

8«. 104. Eliminatton of nquiivToant lliat Fsdaral Houains Adniniatrabon iotenal 

Sk. 40B. MiBiniuB prap«t]i i"— 
Sm. 40C. Tim* of paymanl of : 

Sm. 408. AiaipiDMnt of aaction £21(tll4) mortgafoa lo Govonmwnt National Mort- 
Sec. 401. Termination of aaction 221 bur-baek pronaioB. 

SubpHrl 2— ffincle-Pamil^ Man«ace Inninutca ProcTana 
Sm. 41G. litla I inaurance (or augtinc manufactureil homaa. 
Sm. 41G. Increaaed title I loan limiu Tor manulactured hooHa and Ma. 
Sk. 411. Refinancing manufactund twmaa under titlt L 
Sk. 418. CDunaelinc fo 

8k. 418. Cooperativeli 



yGoot^le 



PUBUC LAW 9&-181-NOV. 30, 1983 



Sac. t£l. Sii«l»Amil:r owrtfica in 

Sb. 122. Singk hnulj nwrtgagviD 

8*c 423. TnUnuit of FadenI Houno( Ai 



[y priced sdcIb ^ 



Subjiwt 3— WuHifwiuly and Othar hSotlfg* lo 
Bac 43L DtKrMionMfj authority to nyulala ronli or chama. 
Sac. 432. Ramova] of nOnandng limitatiofia oo cotain multitBinily pnnacta. 
Sac. 433 LunitAtion on pnpaynwnt at mortgagH on multifamlLjr raatal hooaini 



daCion iDoctaa»4>*(A*d taairitHa pncram. 
Sac. 4SZ. Goremmant NmIoih] Mortpfi ABOciation oomm 
Sac. 48S. Spacial aaalitanee aod amaisann moftcan pureh 
of tba Govamment National Hortgag* taodatii 
TTTLB V-BURAL K0U8IN0 
Sac. SOI. Short till*. 
DaflBlboiw. 
SaeticiD 502 amendmnita. 



Sac. S03. 
Sac. Mi. 
Sac. GOG. 



Sk. got. Ganorvl authorit* of tha SecnUry. 
Sm. GM. AmHidmeat lo aeetion Ml. 



yGoot^le 



97 STAT. 1158 



PUBUC LAW 98-181— NOV. 80. 1983 



51G. Drdnilion of 
SIS Slurvd hoati 
GIT. RrnUl nxuO, 



TITLE VI-EXPtWT IMFDRT BANK ACT AHENUIENTS OP I98S 



fK ElipDrtfl dTflrr 
T. Comiirtilivp ■ 



support of Unilol 9uia( nporta. 






S«. 631. Miichinf eradi 



Miichinf 



Sk ESa Technical ar 

P 

Sm. B4I. Short title 
S«. 642. SUtement or 
S«. 613. NHolialine i 
Sk. 6M. EstabliHhmci 
Import 6a 
Sk. 615. Eatabluliinri 



Put C— Tin Aid Cbdht Eihibt Si 



' ■ ii«< ud ciedit pnvnni 
■ tisl aid cmdlt pracnm in 



le United Slate* Eiport- 



TTTLE VIEI-im'ERNATIONAl, MONETARY FUND 



7. C^pM ins Fund 



wing in United Statee credit i 



c. 813. Report* U Coni 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

TTTLB tX-WmtNATUmAL LBNDINO SUPERVISION 

II. Short Utl.. 

' HI of ixUicj. 



8m. MS. CapiUI tOtnamct. 

Sk. 909. Fonffti loan vnluaUou. 

Sm. 910. Gnanl ■utboritiH. 

8m, 911.0X0 audit authoritx- 

Sm. 912. Bqiul npnHDUtian for Cht FHtaral DtfiMlI iBMraon Corpon 

TITLB X— MULTILATERAL DEVELOPMENT BANKS 

Sac. 1001. Intar-AawricmiDmlaiiiDnitBuik. 



Sk. 1006. Pnmiu] pncticH. 

TTTLE Xl-nir APPROPRUTION 
8m. 1101. IMP approprutkiii. 
fiat llSZ.OD(idiU0Baf loUrnaliODBlfiiiueialQatam. 



Part A— Oommunitt DKvSLOniBtT Block Gkamv Frookam 



Sic 101. (a) Sactioa 101(c) of the Houainc and Communitr Derel- 
opment Act of 1974 ii amended— 

(1) in the fint Mntence, br inserting after "title" the follow- 
ing: "and of the commum^ devek^inent program of each 
grantee under thia title"; and 

(2) in the tecood aentuiee, bj inaerting after the fint Mnma 
the following: "not 1cm than 61 peroant of the aggregate of the 
Federal aKistamce proirided under MCtion 106 anoT if ^>^Uci " 
the fund* receiTcd ai a remit of a guarantee lu ' 
•haU be ueed for the eupport of actlrittee that bi 
low and moderate income, and". 

(b) Section 104a>X3) of such Act U ai 

(1) by atriking out the first aemlcolon and Inserting in lieu 
thereof", and"; and 

(2) by inserting before the aemicotou at the eod thereof the 
following: ", est^ that the aggregate use of Autds ncalvad 
under section 106 and. if applicable, as a result of a guarantee 
under saetkni 108, during a period ^edfied tnr the grantee of 
not more than 8 years, snail princtpally benefit peraons of low 
and moderate income in a manner that ensures that not leas 
than El percent irf such funds are uaed for ectivitiee that benefit 
such persons during such period". 



yGoot^le 



PUBUC LAW 98-181— NOV. 30. 1983 

(1) br itrikinff out Uw wmioolon and all that fbllom through 
"lat^iand 

(2) tn adding at the end thereof the rollowing new lentencea: 
"In oraer to permit an orderlr tranaition of each dty loaing ita 
clawificatiop aa a metropolitan dtj bj r«aaon of the population 
dataof tba 1960 decennial oenaua or raviaiona in the osaignation 
of metnjxditan areaa or central citiea, an* city claanTied aa or 
deemed bj law to he a metropolitan citj for purpcaee of BMiat- 
anee under any aection of this title for fiacal year 1983 ahall 
retain auch qualification for puipoaea of receiving auch aaaiat- 
anoe for fiacal yean 1984 and 1986. Any unit of general local 
govenunent that beoomea eligible to be cUwified aa a metropoli- 
tan ci^ (br fiacal year 1984 or 1985 while ita population ia 
included in an urban county for nich fiscal year mav. upon 



of written notification to the 



cal year may. i 
Secretary, defe 



42 use 143T1. 

"(21) The 



claMifkatimi aa a metropolitan city for all purpoaea under thia 
title for fiacal yean 1984, 1985, and 1986 if auch unit of feneial 
local government continuea to have ita population included in 
■uch urban county under lufaeection (d).". 
(b> Section 102(aKG)of auch Act iaammded by striking out the last 
aentence and inaerting in lieu thereof the following new sentences: 
"In order to permit an orderly tranaition of each county losing its 
clavificBtion aa an urban county by reason irf a decreaae in popula- 
tJOT, any coan^ classified aa ordeenwd to be an urban county under 
this para^ra^ for purpoa e a of reesiTuw assistanca under any see- 
tiim of thia title tor fiacal year 1983 ahsdl retain such qualification 
for purpoees of receiving auch aasistanee for fiscal yean 1984 and 
19SS, or for such loiuer period covend by a cooperation agreement 
entered into during fiscal year 19S4. Notwithstanding the combined 
papulation amount aet forth in clauae (B) of the First sentence, a 
county shall also quali^^ as an urban county for purposes of assist- 
ance under section 106 if such county (A) compTiea with all other 
requirements set forth in the first sentence: (Bl has, according to the 
most recent available decennial census data, a oomtnned population 
between 190,000 and 199,999, inclusive; (C) had a population growth 
rata of not less than 16 percent dunng the moat recent 10-year 
period measured by applicable cenwaea; and (D) haa submitted data 
satisfactory to the Secretary that it haa a combined pt^nilation of 
not leas than 200.000.". 

(c) Section 102(a> ot such Act is amended by adding at the end 
thmreof the following new paragraphs: 

"(20) like terms 'peraons of low and moderate ii 
low- and moderate-income persons' have U 
term 'lower income families' in section i 
States Hoiuing Act of 19ST. The term ' 
income' haa the meaning given the term 'venr low-mcome lami- 
lies' in such section. For mirpoaea of such terms, the area 
involved shall be determined in the same manner aa such area 
is determined for purposes of assistance under aection S of such 



term "buildings for the general conduct of govern- 
IS dtf halls, count* administrative buildings. State 
capital or ofRce building or other facilities in which the l^isla- 
tive or general administrative affairs of the go^'emment ar« 
conducted. Such term does not include such facilities aa neigh- 
borhood ssrvice centers or special purpose buildings located in 
low- and moderate-income areas thiit house varioua nonlegiala- 



yGoot^le 



PUBUC LAW 98-181— NOV. 30. 1983 

tiv« functloni or MrvicM providMi l^ govnTUUMit it decentral- 

ind loeatiouB.". 

(d] Section 102 of (uch Act U amended b^ (trikinc out "Deput- 

ment of Comowrce" •■ch place it appe«ra in pera^raidM (3), it), and 

(9)af HihaectioDWandinmibMctionCbjaDdiiuMtuuf in lieu thereof 

— •- -[t". 

■ amended bj etriking out the last 



(0 The lait Mntrace d aection 102(d) of euch Act ia amended bj 
inaertiiwbefon the period at the end thereof the following ".except 
where the unit of general local government loaea the deeignation of 
metropolitan dtj". 



inaeriin^ in lieu thereof tlw following: "Iliere m 



VTATBUNT OF A 

Site. 104. (a) Section 104(aKl) of the Houaing and Community 
Develpment Act of 1974 u amended by adding at the end thereof the 42 U9C 5304. 

following new aentenea; "In all eaaea, beginning in fiacal nai 1934, 
the atatement reauired in tbi* eubaaction ahall mclude a aeecr^tion 
of the uae of fundi made available under aacUon 106 in fiacal year 42 U9C SMS. 
1982 and thereafter (or. beginning in (lacal year 1985. auch uaa lince 
preparation of the lait itatament prepared punuant to thia au b ae c - 
tion) together with an aneaamant of the relationahip of auch uae to 
the community development oliiectivce identiiM in the atatement 



pimared pursuant to thia lubatctiwi for auch previoua fiacal yeaia 
and to the raquirementa of aection 104(bX8).". '^"f. P 11^9. 

<b) Section 104(aX2) of nich Act is amended— 

(1) in the Tint aentence, by inaerting "in a timely manner" 
after "ahall"; 

(2) in lubpaiagraph (A)— 

(A) by inaerting after "citiiena" the following; "or, as 
aii^wopriate, units of general locaJ government"; and 

(B) tn inserting bMore the lonlcaloa at the end thereof 
the falloiwing: ", including the ertimatad amount propoaed 
to be used for activitiea that will benefit persons of low and 
moderate income and the plana of the grantee for minJmia- 
in^ diaplacMnant of peiaons aa a result of activities assisted 
with such funds ana to assist peraona actually displaced as 
a result of such activities"; 

(3) by striking out "and" at the end of subparagraph (BY, 

(4) by striking out the period at the end of aiibparagraph (Q 
and inserting in lieu thereof a semicolon; 

(6) by inaerting after subparagraph (O the following new 
Sul^ragrephK 

"(D) provide citizens or, as appropriate, units of general local 
government with reasonable access to records regarding the 
pest use of funds received under section 106 by the grantee; and 42 U9C 5306. 

"(E) provide citizens or, aa appropriate, units of gmeral local 
government with reasonable notice of, and opportunity to com- 



yGoot^le 



97 STAT. 1162 PUBUC LAW 98-181— NOV. SO. 1983 



(6) bj adding >t the end thereof the following new aentencc: 
"A117 fmal itateiDent of BCtivitiM maj be modined or amended 
tiata time to time by the grantae in accordance with the laine 
proceduTN required in thii parteraph for the preparation and 
■ubnuMian of lucb atatement.". 

(c) Section 104(b) of nich Act ia amonded— 

(1) bjr iiuMtiug before the Bemioolon at the end of pangrvph 
(2) the following; ", and the grantee will affirmatiTely further 
fair houaing"; 

(2) bj atrilung out "and" at the end of paragraph (3); 
(3> m redesignating paragraph (4) as paragrapo (6); and 

(4) bjr inamting an«r paragraph (3) the fbllowing new 
paragrai^iB: 

"w it haa developed a community development plan, for the 
neriod (pecifM bv the grantee under paragraph (3), that identi- 

■ communis oerekipmant and housing need* and speciTiee 

tb riioTt- and Imu-tann commup'*- ••— ~i~— "* -»..~rfi~— 
.__it have been devetoped in aecorda 
tive and requiivmenta (^ this title; 

"(6) the granlM will not attempt to recover any capital coat* 
cf public impniveroenta aMisted in ii4iole or part unoer aectioa 
106 Of with amount* nsttlting ttom a guarantaa under aectioa 
108 1^ BMUMlng any amount i^ainst propertiea owned and 
occupied by penmia m low and moderata Incmne, including any 
fee charged or aaaeannent made as a condition of obtaining 
access to such public improreroenU, nnless (A) funda received 
under section IK are used to pay the proportion of such fee or 
asaessBMnt that relates to the capital costa of such public 
improvement* that are financed from revenue sources other 
than under this title; or (B) for purpoae* of niTwinf any 
amount against pn^Mrties owned and occupied by person* of 
low and moderata mcome who are not persona 01 very low 
income, ths grantee certifies to the Secretary that it lacks 
sufTident f^inds received under section 106 to comply with the 
requirements of subparagraph (A); and". 

(d) Section 104(cKlXA} of such Act i* amended by inserting after 
"community" the first [dace it appears the following: "(including the 
number of vacant and alsandoned dwelling unite)". 

(e) Section 104(d) of nich Act i* amended— 

(1) by inserting "and evaluation" after "performance" in the 
firatH - 



(2) by inaerting "and to the requirements of subsection (bK3)" 
afier ntbaecUon (a)" in the first sentence and 

(3) by inserting after the first sentence the following; "Such 
report shall also be made available to the dtisens in each 
grantee's jurisdictlcm in sufficient time to permit such dtizena 
to comment mi such report prior to it* submission, and in such 
manner and at such times as the grantee m«or determine. Tlie 
grantee's report shall indicate it* pragrammatic accomplish- 
ments, the nature of and reason* for changes in Um grantee'* 
program objective*, indication* of how the grantee would 
change it* program* aa a result of it* eKperiences, and an 
evaluation of the extent to which, ita funds were used for 
activities that benefited low- and moderate-income person*. The 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

nport tbmU indnde a ■lunnwi; of an^ camments nceivad by 
th* grant** from citiiena in ita juriadiction T«ap«ctiiic ita pro- 
frwB. Hw SacrMary ahall encouraca and awiat national aaaoci- 
ationa oT gnmtaaa eligibla undar section 106(dX2XB), national 
•Modationa of Statea, and national nainrintinni of units of 
genaral local govsnunoit in nonsntitlamaBt araa* to develop 
and noommand to the SacntaiT, within one year after the 
•fUsctin date of this sentence, unlfenn recordkeeping, perfonn- 
rMMTtins , and evaluation reporting, and auditing requin- 
s for miat granleea, States, wid units of local mvanunsnt, 
. letirelj. B as ed on the Secretary's approval of thsse raoom- 
nMndatims, the Secretaij shall sstablish such requirements for 



bj Insertinc after "pavnient" the following "and substantial dis- 
burs«nenlB from sucii nmd must begin withm 180 days after receipt 
of such pajrmant". 

^ SectMU 104 of such Act b amended by adding st the end 
thereof the following new subsection 

"(i) Notwithstanding any other jiroTiaion of law, any unit of 
ent may retain anv program incc~- ' 
. _ int made by the Sscretaiy, or ai 

distributed by a State, under section 106 if (1) nich L _ 

raaliMd after the initial disbursement of the flindi received by nich 
unit of general local govamment under such section; and (2) such 
unit of genaral local govmment has agreed that while the unit of 
general local government is particuoatinft in a communis deve l op- 
meat program under this title it wiDutiliie the program income for 
eligible community developntent activities in acowdanoe with tha 
provi^ous of this title. A State may require as a condition of any 
•mount distributed by such State under section 106(d) that a unit of 
general local government shall nay to luch State any su^ income to 
M uaed bf sum State to fund soditionBl eligible community develop- 
BMDt activities, except that such State •hall waive such condition to 
the extent such income is applied to continue the activi^ from 
vrttlch such biaxne was derived. 

"(j) Bach grantee shall provide for reasonable beueflta to any 
person involuntarily and pemumently displaced as a result of tha 
use of assistsnoe received under this title to scquire or subetantially 
rriiabilitata proper^.". 



Sk. 106. (a) Saction 10S(aX2) of the Housing and Community 
Davalopmsnt Act of 1974 is amended to raad as fuiows: 

(2) tha acquisition, oonstnietlon, reconstruction, or installa-. 
tion (including deaign featuree and improvements with rcapect 
to such construction, reconstruction, or instsUstiMi that pro- 
mote energy efliciency) of public works, facilities (except Cor 
buildings lor the general conduct of government), and vta or 
other improvements;". 
(bKDSacUon 105(aX8)of such Act is amended— 

(A) by striking out "10" and inserting in lieu theraof "15"; 

(B) by inserting before the semicolon at the end theraof the 
following: "unless such unit of general locsl government ussd 
more than 16 percent of the assistance rseeived under this title 



37-922 O - 84 - 2 ' 



yGoot^le 



PUBLIC LAW 98-181— NOV. 30, 1983 

(or fiBcal year 1983 for such activities (excluding any awiatance 
received ourauant to Public Law 98-8). in nhich caae Buch unit 
of general local government may use not more than the percent- 
age or amount of such aamstance tued for such activitiea for 
■ueh fiscal year, whichever method of calculation yields the 
higher amount", 
(2) Section 303(b) of the Housing and Community Development 

Amendments of 1981 is amended hi striking out ", 1983. and 1984" 

and inserting in lieu thereof "and 1983". 

(c) Section 105{a)(U)of the Housing and Community Development 
Act of I9T4 is amended by inserting after "public facilities" the 
following: "(except for buildings for the general conduct of 
government)". 

(d) Section 105(aXt5) of such Act is amended by inserting the 
following before the semicolon at the end thereof: ". including 
grants to neighborhood-based nonprofit organizations, or other pri- 
vate or public nonprofit organizations, for the purpose of assisting, 
as pari; of neighborhood revitalization or other community develop- 
ment, the development of shared housing opportunities (other than 
by construction of new facilities) in which elderly families (as de- 
fined in section 3(b)(3) of the United States Housing Act of 1937) 
benefit as a result of living in a dwelling in which the facilities are 
shared with others in a manner that effectively and efficiently 
meets the bousing needs of the residents and thereby reduces their 
cost of housing", 

(•) Ssction 105 of such Act is amended by adding at the end 
thereof the following new subsections 

"(cXl) In any case in which an assisted activity described in 
paragraph (14) or (17) of subsection (a) is identified as principally 
Denenting persons of low and moderate income, such activity shall — 
"(A) be carried out in a neighborhood consisting predomi- 
nately of persons of low and moderate income and provide 
services for such perwHis; or 

"(B) involve facilities designed for use predominately t^ per- 
sons of low and moderate income; or 

"(C) involve employment of persons, a mtgority of whom are 
persons of low and moderate income. 
"(2) In any case in which an assisted activity described in subsec- 
tion (a) is designed to serve an area generally and is clearly dssigned 
to meet identified needs of persons of low and moderate income in 
such area, such activity shall be ctHuidered to principally benefit 
peisons of low and moderate income if (A) not less than 51 percent of 
the residents of such area are persons of low and moderate income; 
or (B) in any jurisdiction having no areas meeting the requirements 
of subparagraph (A), the area served by such activity has a larger 
proportion of^isons of low and moderate income than not less than 
75 percent of^the other areas in the jurisdiction of the recipient. 
"(3) Anv assisted activity under this title that involves the acquisi- 
tion or rehabilitation of property to provide housing shall be consid- 
ei«d to benefit persons of low and moderate income only to the 
extent such housing will, upon completion, be occupied by such 

ALLOCATION AND DISTIIIBiniON Or FUNDS 

Sec. 106. (a) Section lD6(b) of the Housing and Community Devel- 
opment Act of 1974 is amendsd by adding at the end thereof the 
following new paragraph: 



yGoot^le 



PUBUC LAW 98-181— NOV. 80, 1988 

"mA) Where deU era awulaUe. the emoimt determined under 
peragreidi (I) for a metropoliten citjt that ha* been formed bjr the 
COnKHidatUoi of me or more metropolitan citiea with an uihan 
coun^ thall be equal to the ■um of the amounla that would have 
been determined under paraKraph (1) for the metropolitan d^ oi 

cities and the balance of the conaolidatad ■ ' " ~~~' 

eonaolidatiou had not occurred. Thia paragrapE 
anj oonaolklation that — 

"(i) included aU metropcditan citiee that received grants under 
thia aection for the fiacal year preceding auch conaolidation and 
that wen located within the urban county; 

"(ii) included the entire urban county that received a grant 
under this section for the Tiacal year preceding such cons^ida- 



"(iii) took place on or after January 1, 1983. 
) The population growth rata uiall metropolit 

' I lOaiaNlZ) dull be based oa the popuUtion of (i) 4ZUSC63D2. 



a irfall metropolitan citiea reTerred 



BMtropolitan dtiea other thJim consolidated governments the grant 
fivr which ia determined under thia paragraph; and (ii) citiea that 
were metn^iotilan citiea before tiieir inco^poratiou into eonsolidatad 
governments. Foe purpeees of calculating the entitlement ehare tot 
the balance of the conaolidBted government under thia paragraph, 
the entire balance shall be considered to have been an urban 



(b) section 106(cXlXB) of such Act is a _ 

"(B) In reallocating amounts reaulting from an action under 
aection 104(d) ot aection 111, a city or county againatwhwn any 
■udi actim was taken in a fiscal year shall be ezcluded from a 
calculation of share for purpoaea of reallocating, in the eueoeed- 
ing year, the amounts becoming available aa a reault of such 
action; and". 

(c) Section 106(c) of such Act ia amended by adding at the end 
thereof the following new paragrai^; 

"(3) Notmthatanmng the provisions of paragrBph (1), the Secre- 
tary may upon reifueet transfer responsibility to any metropolitan 



city for the administration of any amounta received, but not 
obligated, by the urban county in wliich such city is located if (A) 
such city was an included unit of general local goreroment in such 
county prior to the qualification of such dty as a metropolitan dty, 
(B) such amounts were designated and received hy such county for 
use in such dty prior to the qualiffcation of such city aa a metr^wl>- 
tan dty; and ICI such city and county agree to such transfer of 
respmaibility for the administration of such amounts.". 
(dXl) Section I06(dX2XA) of such Act is amended— 

(A) by etrilung out "the State" and inserting in lieu thereof "a 
Stata tnat has elected, in such manner and at such time as the 
Secretary shaU preocribe"; and 

(B) by inserting after clauae (ii) the following new Kntence: 
"Any election to distribute funds made after the close of fiscal year 
1984 ia permanent and final,". 

(2) Section 106(dX2KB) of such Act is amended t» etriking out 
"irtiere" and all that follows through the period at tae end thereof 
and inaerting in lieu thereof the following: "if the State has not 
elected to diatributa such amounts.". 

(a) Section 106(dX2KO of auch Act is amended by striking out 
dauaa (iii) and inaerting in lieu thereof the following new clauae: 



yGoot^le 



97 STAT. 1166 PUBUC LAW 98-181— NOV. 30, 1983 

"tiii) will not nfuse to distribute iuch amounts to any unit of 
Beneral local government on the basis of the particular eligible 
activity selected by such unit of genera] \ocai government to 
meet its community development needs, except that this clause 
may not be considered to prevent a State from establishing 
priorities in distributing such amounts on the basis of the 
activities selected; and". 
42 use 5306. {{) Section 106(dX2) of such Act is amended by adding at the end 

thereof the following new subparagraph: 
Ortirication. "(Dl To receive snd distribute amounts allocated under paragraph 

(1). the Governor of each State shall certify that each unit of^neral 
local government to be distributed funds will be required to identify 
its community development and housing needs, including the needs 
of low and moderate income persons, and the activities to be under- 
taken to meet such needs.". 
Payments (g) The Second and third sentences of section 106(dK3NAI of such 

Act are amended to read as follows: "The State shall pay from its 
own resources all administrative expenses incurred by the Stata in 
carrying out its responsibilities under this title, except that frtKn th« 
amounts received for distribution in nonentitlement areas, the Stat« 
ma* deduct an amount to cover such expenses not to exceed the sum 
of S102.000 plus SO percent of any such expenses in excess of 
SIW.OOO. Amounts deducted in excess of (100,000 shall not exceed 2 
percent of the amount so received.". 

(hi Section ll>6(dX3) of such Act is amended by striking out 
'Subparagraph (C) and inserting in lieu thereof the following: 

"(C) Any amounts allocated for use in a State under paragraph (II 

that are not received by the State for any Tiscal year because of 

failure to meet the requirements of subsection (a) or (b) of sectKM 

104, or that become available as a result of actions against the State 

Anit. p. U6Z. under section 104(d) or 111, shall be added to amounts sllocat«d to 

4£USC .S31]. all States under paragraph (1) for the succeeding fiscal year. 

"(D) Any amounts allocated for use in a State under paragrqih (1) 
that become available as a result of actions under section 104(d) or 
111 against units of general local government in nonentitlement 
areas of the State or as a result of the closeout of a grant made by. 
the Secretary under this section in nonentitlement areas of the 
State shall be added to amounts allocated to the State under para- 
graph (1) for the fiscal year in which the amounts become ao 
available". 

(i) Section 106(d) of such Act is amended by adding at the end 
thereof the following new paragraphs: 

"(5) No amount may be distributed bv any State or the Secretary 
under this subsection to any unit of general local government 
located in a nonentitlement area unless such unit of general local 
government certifies that — 

"(A) it will minimize displacement of persons as a result of 
activities assisted with such amounts: 

"(B) its program will be conducted and administered in con- 
42 use ZWKta formity with Public Law 88-352 and Public Uw 90-ZW, and 

5"^ ., that it will afTirmatively further fair housing: 

SZ Stal. 3. ■■((;) j( ^j] proYidg for opportunities for citizen participation, 

hearings, and access to information with respect bo its commu- 
nity development program that are comparable to those 
42 use 5304 required of grantees under section 104(aX2); and 

(D) it will not attempt to recover any capital costs of public 
improvements assisted in whole or part under section 106 or 



yGoot^le 



PUBUC LAW 98-181— NOV. 80. 1983 97 STAT. 116 

with amounts remilting fiom a guarantee under lection 108 by M Sul 91S. 

— — '"g any amount against prapertiea owned and occupied by ^^ ^^^ 'St*^ 

perwnf of low and moderate income, including any fee charged 

or awowment made as a condition of obtaining accew to nich 

public imimtvemenla, unkaa (i) funds received under section 106 *2 USC 5306. 

an ueed to pay the proportioB of such fee o . . .■ . 



and oocuiried by persona of low and moderate income who are 
not persons of very low income, the grantee certiAee to the 
Secretary or such State, as the case may be, that it leeks 
suf5dent funds received under section 106 to comply with the 
requirements of clause (i). 
"(6) Any activities conducted with amounts received by a unit of 
general local government under this sufaeection shall be subject to 
the applicable provisioii* of this title and other Federal law in the 
same manner and to the same extent as activities conducted with 
amounts received by a unit of general local government under 
subsectioR (a).". 
U) Section 106(0 of such Act is amMided to read as faOowK 
"X If the total amount available for distribution in any fiscel year 
to metrop^tan cities and urban counties under this section is 
insufficient to provide the amounts to whidi metrcmolitan cities and 
uiban counties would be entitled under sufaeection lb), and fimds are 
not otherwise appropriated to meet the diefidency, the Secretary 
shall meet the oeficiency through a pro rata reduction of aU 
amounts determined under subsection (bX If the total amount avail- 
able for distribution in any fiscal year to metropolitan cities and 
urban counties under this section exceeds the amounts to which 
metropolitan cities and urban counties would be entitled under 
ion (b), the Secretary shall distribute the excess throush a 
a increase of all amounts determined under subsec t ion u>).". 



Sic. lOT. (a) Section 107(a) of the Housing and (Community Devel- 
opment Act of 1974 is amended by striking out the first sentence and 
inserting in lieu thereof the following: "Of the total amount 
aiqwDved in appropriation Acts under section 103 for each of the 
fiscal yean 19S4, ldS6. and 1986, not mon than $68,200,000 for each 
such fiscal year may be set aside in a special discretionary fund for 
grants under subeection (b).". 

(b) Section 107(bX4) of such Act is amended to read as follows: 
"(4) to States, units c^ general local government, Indian 



tribes, or areawida planning organizations for tJM purpose of 
providing technical assistance in planning, developing, and 
administering sssistanoe under this title; to groups assJgtated 



by such governmental unite to assist them in carrying <._ 
assistance under this title; to qualified groupe for the purpcee of 
assisting mon than one such governmental unit to carry out 
Mdstance under this title; and to States and units of general 
local government for implementing special projects otherwise 
authoriied under this title; and the Secntary may also provide 
technical assistance, directly or through contracts, to such fov- 
emmental unite and groups; and", 
(c) Section 107(b) of such Act is ai 



yGoot^le 



97 STAT. 1168 



PUBUC LAW 9ft-181— NOV, 30, 1983 

(I) by itriking out "and" at the end of paragraph (3); and 

(!) by adding at the end thereof the following new paragraph: 

"(5) to States and units of general local Kovemment for the 

purpose of allocating amounta to any Buch Stale or unit of 

Keral local government that is determined tnr the Secretary to 
« received insufTicient amounta under section t06 as a result 
of a miscalculation of its share of funds under such section.". 



OUAKAirm OF LOANS 

Sk. 108. (a) Section 108(a) of the Housing and Community Devel- 

rent Act o( 1974 is amended by inserting after the first sentence 
following new sentence: "A guarantee under this section may ba 
used to assist a grantee in obtuning financing only if the grantae 
has made efforts to obtain such financing without the use of such 
guarantee and cannot complete such financing consistent with the 
lion of the proeram plans without such 
108(a) of such Act is amended by stritcinq 
inserting in lieu thereof the following: "h 
ing any other provision of law and subject only to the absence of 
qualified applicants or propoeed activities, to the authority provided 
in this section, and to any funding limitation approved in appropri- 
ation Ada, the Secretary shall enter into commitmeitts during fiacal 
year 1984 to guarantee notes and obligations under this section with 
an aggregate principal amount of $225,000,000.". 



ft) Section 



USE or GRANTS TO SnTLI OUTSTANDING V 






Sic. 109. Section 112 of the Housing and Community Development 
Act of 1974 is amended by adding at the end thereof the following 
new subsection: 

"(c) Any unit of general local government may retain any pro- 
gram income tltat is realized from a grant made by the Secretair 
pursuant to subsection (a) or under title I of the Housing Act of 1949 
if (1) iuch income was realized after the initial disburaement of the 
grant funds by such unit of general local government- and (2) such 
tmit of general local government agrees to utilize the prop«m 
income for eligible community development activitiea in aceordaiice 
with the provisions of this title.". 

TKANamON PROVtaiONS 

Sk. 110. (a) Section llG(b) of the Housing and (immunity Deval- 
opment Act of 1974 b amended by— 

(1) striking out "(in that fiscal vear)"; and 

(2) striking out "in that year and inserting in lieu thereof 
"for that year". 

(b) The amendments made bv this section shall apply only to 
funds available for fiscal year 1984 and thereafter. 

Part B— Othm Prookams 

1;RBAN DCVELOFHaNT ACTION GRANIS 

Sk. 121. (a) Section U9(a) of the Housing and Community Devel- 
opment Act of 1974 is amended by adding at the end thereof the 
following new sentence: "There are authorized to be appropriated to 



yGoot^le 



PUBUC LAW 98-181— NOV. 80. 1983 97 STAT. 1169 

carry out the proviMon* of thi* •ection not to exceed $440,000,000 for 
each of the fiacal jeara 1984, 198&. and 1986, and an; amount 
appropriated under this wntence ihall remain available until 
expended.", 
(bisection ll9(bXl)ofauch Act ia amended— 

(1) in the last eentanee, by atriking out "where data are 
available, the extent of unemployment and Job lag" anil inaert- 
ing in lieu thereof the following: "the extent at unemplosnnent. 
Job lag, or curplue labor"; and 

(2) Dj adding at the end thereof the following new eentencea: 
"Any dty that has ■ population of leaa than 60,000 peraoni and 
ia not the central dty of a metropolitan tn», and that waa 
•Unble for fiical year 1983 under thii paragraph fbr aaaiatance 
unBer tbi* aection, ahall continue to be eli^ble foe such aanat- 
ance until the Secretary reviaea the otandarda for eligibility for 
auch citiee under this paragraph and includea the extent of 
unemployment, job lag, or labor nirplus aa a itandaid of die- 
tree* tor auch citiee. Tm Secretary ahall make auch reviaion ae 
eoon aa practicable following the effective date of thia 

(c) Subpara^apha (A) and (B) of aection 119(bK2) of eueh Act ar 
each amended t^ inaerting "neighborhood etatiatica areea," aftei 
"enumeration diatricta,". 

(d) Section 1 19(cK3) of nich Act ia amended— 

(1) by atriking out ", and (B)" and inaerting in lieu thereof "; 
{B)":and 

(2) by inaerting the following after "carried out" in dauae (By. 
": and (O haa made available the analyaia deecribed in clauae 
(B) to anji intereatad peraon or organization rending or located 
In the neighborhood m which the propoaed activitiea are to be 
carried out". 

(e) Section 119(dXl) ofauch Act ia amended in the first aentance by 
adding after the word "criteria" where it firat appeatv "for a 
national competition". 

(f) Section 119(i) of auch Act ia amended by adding at the end 
thenof the fi^lowing new aentence: "The Semtair abiOl encourue 
cooperation by geographically proximate dtiee of leea than 50,000 
population by permitting eoneortia of auch citiee, which may alao 
mclude county mvemmmta that are not urban countiea, to apply 
for grantaon Dehalf of ad^ that ia otherwiae eligible fbr asaistance 
under tiua lection. Any granta awarded to nich oonaortia ahall be 
adminiatared in eompliaiice with eligil^ty requirementa applicable 
to bidividual dtiea.". 

<g) Section 119 of such Act ia amended by adding at the end 
thereof the following new aubaectiona: 

"<p> An unincorporated portion of an urban county that ia 
a^ roved by the Secretary aa an identifiable community for pur- 
poeea of thia aection ia eligible for a grant under aubaection (bX2) if 
auch portion meeta the eligibility requirementa contained in the 
flrat aentance of eufaeection <bXl> uid the requirementa of aubaection 
(bX2XB) (^n>lied to the population of the portion of tiie urban 
county) and if it otherwiae eompliei with the proviaiona of thia 

"(q) Of the amount! appropriated for purpoeee of thia aection for 
any ftaeal year, not more than $2,600,000 may be need by the 
Secretary to make technical aviatance granta to Statei or their 
agendea, municipal technical adviaory aervices operated by univerai- 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

tiea, or State aioociBtioni of counties or munieipalitica, to enaMe 
nich entitiea to fwaiit units of general local government described in 
■ubwction (i) in developing, appljnng for asiatance for, and imple- 
menting pngnma eligiDle for aasutance un<kr thu tection. 

"(r) In providing (mittanffi under this lection, the Secretarr may 
not diacriminate amtms procrama on the baaii of the particular typ* 
of activity involved, whether audi activity is primarily a neighbor- 
hood, induatrial, or commercial activity.". 

UmBAM HOURTIADDra 



"and (g)" and all that foUowi throuf^ "19S3" and inserting in lieu 
tberecrf the following: ", (f), Oi), and (i), there are authorised to be 
appropriated not to exceed (12,000,000 for fiscal year 1984, and such 
nuns as may be neceaearr for fiscal year 1985". 

(b) Section 810(eK3) of such Act is amended by inserting "^ a 
person legally entitled to reeide there" before the aemicolon. 

(c) Section SlOCbXS) of such Act is amended— 

(1) by striking out "three yean" in nibparagraph (A) and 
inserting in lieu thereof "5 vean, except under such emergency 
standard as may be prescrioed by the Secretary': 

(21 by striking out subparagraph (B) and inaerting in lien 
there<^the fo" 

"(B) re ,..^ 

tial danger to health and safety within 1 year of the date of 
such initial conveyance;": and 
(S) by striking out "eighteen months after occupying the 
property" in subparwrapn (O and inserting in lieu theiMtf "3 
years aRer the date of initial conveyance". 

(d) Section 810(b) of such Act is amended— 

(1) by striking out "and" at the end of paragraph (5); 

(2) by striking out the period at the end of paragraph (6) and 
inserting in lieu thereof' : and"; and 

(3) by adding at the end thereof the following new paragraph: 
"(T) an equitable procedure for selecting the recipients at suck 

properties that — 

"(A) gives a special priority to applicants — 

(i) whose current housing fails to meet standards ot 
health and safety, including overcrowding: 

"(ii) who currently pay in excess of 30 percent cf 
their income for shelter, and 

"(iii) who have little prospect of obtaining improved 
bousing within the foreaeeable future through means 
other uian homesteading; 
"(B) excludes applicants mo are currently homeownera; 



tion process, or to obtain assistance from orivate Bource*, 
community organiiations, or other sources. . 
(e) Section 810(1) of such Act is amended— 

(1) by inaerting ", the Secretary of Agriculture," after "Secre- 
tary'" each place it ai 
itnking out 
u thereof "residential properties": and 



yGoot^le 



PUBUC LAW 98-181— NOV. ! 
(3) bjr ■ 



, _ , Public «™» 

J hours at the offices of such unit of BeDeral local 

govemnient or public agency.", 
(f) Section 810 of such Act is amended— 12 U9C no6s. 

(1) in subsection <c), t^ inaerting "or (h)" after "nifaeection 

(br-. 

W bv redeei^nating nibeection (h) as subsection 00; and 

(3) by inserting after subsscticm (g) the following new 



"(hxi) Tm Secretary may, on a demonstration basis during fiscal 
years 19S4 and 1985. convey to any unit of general local government 
or public agency designated by such unit of general local govem- 
perty— 

h the Secretary holds title; and 
"(B) that the Secretary detemiines to be suitable for a multi- 
family homeateading prograni that complies with the require- 
ments of paragraph (2); 
for such consideration, if any, as mav be agreed upon b e t wee n the 
Secretary and such unit of general local government or public 
agency. 

"(2) Any multifamily homesteading program carried out by any 
unit of general local government or public agency designated 1^ au^ 
such unit of general local government shall be consiaered a multi- 



contains adequate assurances that — 

"(A) tlie primary use of all nomeaieaa properuas loiwwmg 
convenion or rehabilitation shall be residential; and 

"(B) not leas than 75 percent of the rvaideutial occupants of 
homwrtead properties following conversion or rehabilitation 
shall be lower income families. 
"(3) As ussd in this suhaectian and sufassction (i) the term 'lower 



e meaning given such term in section 3AX2) 
Ml SUtas Housing Act of 1937. 
"(iXD The Secretary shaU uae not more than (1,000,000 of the 



of the United SUtas Housing Act of 1937. 



amounts appropriated under this section for each of the fiscal yean 
t9S4 and 19S5 to undertake a program to demonstrate the feasioility 
of providing assistance to State or local governments or their agen- 
cies for the purchase of any real property that— 

"(A) is improved bj* one- to four-family residence; 
"(B) is not occupied by a person legally entitled to reside 
tber^, 

"(O is designated by a State or general unit of local govern- 
ment for use in a single family homestead progivm; and 

"(D) will be conv^red to lower income families under such 
program upon condition that each such bmily agrees— 

"(i) to occupy the property as a principal reaidence for a 
period of not leas than 5 yeara, except under such 
emergency standards as may be preocribed by the 

"(ii) to repair all defects in the property that pose a 
substantial oanger to health or safety within 1 year of the 
date of the initiid conveyance; and 

"(iii) to make such repairs and improvements to the 
property as may be neceeaary Is meet applicable local 



yGoot^le 



PUBUC LAW 98-181— NOV, 30, 1983 



Congrem, 



ropertiM thitt 
I u tax Iwnt, 

"(j) The Secretary ■hall conduct a continuing evaluation of the 
denuKwtnition prognuiw carried out under lubaectioni (h) and (i) 
and ehall transmit to the Congress a report not later than December 
31, 198S, containing a sununarr of his evaluation of all such pr^- 
grama and his recommendationi for the future conduct of audi 
programs.". 



nei^bi 

(C> developing, rehabilitating, or managing neighborhood 
housing stock; 

(D) developing delivery mechanisms for essential ■ervicea 
that have lasting benefit to the neighborhood; or 

(E) planning, promoting, or financing voluntary neighbor- 
hood improvement efforta, 

(2) The t£rm "eligible neighborhood development organinp 

(A) an entity organized as a private, voluntary, nonpitifit 
corporation under the laws of the State in which it 

(B) an organization that is responsible to residents of its 
neighborhood through a governing body, not lest than 51 
per centum of the members of which are residents of t^ 
area served; 

(C) an organization that has conducted businen for at 
least three years prior to the date of application for 
participation; 

<D) an organization that operates within an area that 
meets the requirements for Federal assistance under aeo- 
tion 119 of the Housing and Community Development Act 
afl»T4;and 

(E) an organization that conducts one or more eligihla 
neighborhood development activities that have as UMir 
priina^br """"""""" '" ---■--'- • ■ — 

Development Act of 1974. 

(3) 'nie term "Secretary" means the Secretary of Houaingond 
Urban Development. 

(bXI) The Secretary shall carry out, in accordance with this 
section, a demonstration program to determine the feasibility of 
suppmting eligible neighborhood development activities by provid- 
ing Federal matching funds to eligible neighborhood development 
organizations on the oasis of the monetary support such organiza- 
Ums have received from individuals, businesses, and nonprofit or 
other organizations in their neighborhoods prior to receiving assist- 
ance under this section. 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 



bood development oraaimatiotia for perticipation ti 
tion program. Eligible oiganizationa may participate 

B ^ear of the prograni, but Bhall be required to submit a 



applicatiOD and to compete in the Belection proccM for each pnigram 
year. Not more than 30 per centum of the grants may be for 
multiyear awards. 

(3) From the pool of eligible neighborhood develo[Hnent organiza- 
tions submitting applications for participation in a ^ven program 
year, the Secretai; shall select participating organisations in an 
appropriate number through a competitive sMection process. To be 
selected, an applicant shall — 

(A) have demonatrated measurable achievements in one or 
more of the activities specified in subeection (aX4): 

(B) specify a buninew (dan for accomplishing one or more of 
the activities specified in subsection <aX4y, and 

(Q specify a strategy for achieving greater long term private 



(cXl) The Secretary shall award grants under thia section among 
the eligible neighborhood development organizations submitting ap- 
plications for such grants on the basis of— 

(A) the degree of economic distress of the neighborhood 
involved; 

(B) the extent to which the proposed activitiee will benefit 
persons of low and moderate income; 

<C) the ertent of neighborhood portidpetion in the proposed 
activities, as indicated by the proportion of the households and 
businesses in the neighborhood involved that are members of 
the eligible neighborhood development organization involved; 

(D) the extent of voluntary contributions availaUe for the 
purpoM of subsection (eX4), except that the Secretary shall 
waive the requirement of this subparagraph in the case of an 
application submitted by a small eligible neighborhood develop- 
ment organization, an application involving activities in a very 
low-income neighboiiiood, or an application that is especially 
meritorious. 
(d) The Secretarv shall consult with an informal working group 
representative of eligible neighborhood organizations with respect to 
the implementation and evaluation of the program establislied in 
this section. _ 

ecretary shall assign each partii 
defined program year, during which time v 
from indiviauals, busini ''' 

the nrnghborhood shall 

<2} Siuqect to paragraph (3), at the end of each three-month period 
oocurring during the program year, the Secretary shall pay to each 
participating nei^borhood development organization Uie product 
of— 

(AJ the aggregate amount of voluntary contributions that 
such onaniiation certifies to the satisfaction of the Secretary it 
received during such three-month period; and 

(B) the matdiing ratio established for such test neighborhoods 
underperagraph (4). 
(3) TV SeOTebsty shall pay not more than 150,000 under this Act 
to any participating neighnorhood development organization during 
a allele prognmi year. 



mprofit or other organizations ii 
whborhood shall be eligible for matching. 



yGoot^le 



97 STAT. 1174 

FMenI matched 



PUBUC LAW 98-181-NOV. 30, 1983 



EvaJuation ai 



12 use USZh. 



■uch ratios shall b« established for neighborhooda having the small- 
Mt number of households or the greatest degree of eoanonie 

(6) The Secretary shall insure that— 

(A) grant! and other forma of nnrittnnfr may be maae 
available under this section only if the applicatioo cxmtains ■ 
certification l^ the unit of general local government within 
which the neighborhood to m assisted is located that soeb 
assistance is not inconsiBtent with the housing and communis 
development plans of such unit, except that the failure of a unit 
of general hical government to respond to a request for a 
certiTication within thirty day* after the request is made shall 
be deemed to be a certification; and 

(B) eligible neighborhood development activities comply with 
all applicable provisions of the Civil Rights Act of 1964. 

(6) To carry out this section, the Secretary — 

(A) may issue regulations as necessary; 

(B) ritall utilize, to the fiiUest extent practicable, ral«vant 
research previously conducted by Federal agencies, Stata and 
local governments, and private organisations and peraoiiB; 

(C) shall dis sem inate mformation about the klnos of activities, 
forms of organizations, and fund-raising mechanisms awociatsd 
with successful programs; 

(D) shall unifertake any other activity the Secr«tarT rlaams 
neceaaary to carry out this section, which shall induda aa 
evaluation and report to Congress on the demonatrattan aad 
may include the performance of research, planning, and 
istration, either directly, or when in the Secretary's jut 
such activity will be carried out more effectively, mora n 
or at leas cost, by contract or grant; and 

(E) may use not more than 5 per centum of the funds mfipifh 
priated for administrative or other expenses in connectioa with 
the demonstration. 

(f) The Secretary shall submit to the Congress— 

(1) not later than three months after the end of each fiscal 
year in wliich payments are made under this section, an intsfia 
report containing a summary of the activities carried out nndsr 
this section during such fiscal year and any preliminaiy fliid- 
insa or concluaions drawn from the demonstration program; and 

W not Uter than March 15 of the year after the sod of the 
last fiscal year in which such payments are made, a final report 
containing a summary of all activities carried out under thta 
aection, the evaluation required in subsection (eX6XD) and mnf 
(indinga, conclusions, or reconunendationa for legislation drawa 
from the demonstrati<m program. 

(g) For purposes of carrying out this section, there are authorisad 

*A 1^ BHAVAVSnBtAfl nH* »A ^ C9 /UVt AAA fjW AB^h rJ tU^ ^ ' 



o exceed $2,000,000 for each of the fbcal 



-.1^ 



Stc 124. (a) Section 312(d) of the Housing Act of 1964 is a 
by adding the following new sentence at the end thereof; "I^ 
Secretary may not esteJilish (1) any requirement that a oartain 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 97 STAT. 1175 

4t of antstance received under thi« eection be utilind for 
ieulw tyft of dwelling unit; or (2) anjr primity for the 
r meh awutance that iiDaMd on the reonpt or use of fiindi 
oUcant or area under any other program of Federal aariat- 
Bounng or eommuni^ devd<q»Mnt, other than the urban 
■dine program eatablidted In aection 810 of the Houaing and 
1^ Development Act of 1971". iz uac iToSa. 

:ioa SiaCh) of auch Act b amended— ^"t. p. Ttf . 

bjr atriking out "November 30, 1983" and inaerting in lieu '^ USC i46Zb- 
mT "September 30, 1984"; and 
br atnking out 'l)eeember 1, 1983" and inaerting ii 

»rf"C 



f "October 1. 1984". 



S. Section 608(a) of the Neighborhood Reinveatment Corpo- *i VX SIDT. 
Gt ia amended by itriking out "title" and all that follom 
1982" and inaerting in lieu theretrf the following: "title not 
1 116,612.000 for fiscal year 1984, and auch aumi as may be 
r for fiacal year 1985". 



& (oXl) Section 414 of the Houaing and Urban Development 

89 her^yia repealed. 40USC« 

.withstanding paragraph (1), the Secretary of Ibuaing and Pnqierty 

•waloDment ami the Seeretai-v of Anictthuie mav dianoae °f?^: 



4DUSC« 



g paragraph (1), the Secretary of Houaing 

and the Secretary of Agricuhuie may dii 

r1 property pursuant to tm terma of tectioi 
Ut a, prior to the date of the enactment of this Act, atber 
f had requested the AdminiatrBtdr of 0«ieral Services to 
■ndi property for such dispoaitioa. 

wHhstwiding paragraph (D. sectioa 414(b) of such Act shall 10 uac 184b 
to V^y, where applicable^ to all property tranaforred by '">*'' 
tcretary pursuant to section 414 of sudi Act, including 



tioB 703((U of the Housing and Urban Development Act of 
e of aection 706, of the 



ifajr is repealed 
"n 704. and 



Act of 1961 hereby are repealed. 

TFTIf n— HOUSINa ASSICTANCE PROGRAMS 

LLOCATION AND Un Ot ASStffTKD HOUSINO AtrmOUTV 

)1. (aXl) Section 213(aXl) of the Houaing and Communis 
oent Act of 1974 is amended by adding at the end thereof 
iwing: "Upon receiving an application fbr such housing 
«, the Secretary shall Bsaure that tUnda made available 
hh aection shall be utilized to the ttt'*'"'"" extant 
4e to meet the needs and goals identified in the unit of local 
ant's bousing assistance plan.". 

tion 213(d) of such Act is amended by striking out para- 
Jand (2) and inserting in lieu thereof the followino: 
le Secretary shall allocate aaaiatance redwKed b 



9, 14, 1 



Be approved in aKmtpriation Acti 
17 of the United sUlea Houaing A 



yGoot^le 



97 STAT. 1176 PUBUC LAW 98-181— NOV. 30, 1988 

42 use 143Tb. 1937) the Hrat time it ia avmiloble for rMervation on the basis of a 

'^o/""' formula which is contained in a r^pilation pnacribed by the Seer*- 

P- ii»e. j^^_ ^j which ia baaed on the relatiTe need* of dilTerent States, 

areas, and coninmnitiea as reflected in data ai to populatioa, 
puveitji, housinB overcrowding, bouHng vacannea, amount of sub- 
standard housinK, and other objectively measurable conditions speci- 
fied in such reciuatiou. An; amounts allocated to a State or areaa or 
communitiea within a State which are not likely to be utilised 
within a (iacal year shall not be reallocated for use m another State 
unless the Secretary determines that other areas or communities 
within the same State cannot utilixe the amounts within that aame 
fiscal year. 

"(2) Not later than siztv days after approval in an appropriattoo 
Act, the Secretary shall allocsde from the amounts available for use 
in nonmetropolitan areas an amount ot authority for iiMiirtnnfm 
42 use 143Tf under section S(d) of the United States Housing Act of 1937 deter- 

mined in consultation with the Secretary of Agriculture for use in 
Aai. p. 1250. connection with section 532 of the Housing Act of 1949 during the 

fiscal year for which such authmi^ is approved. The amount d 
assistaitce allocated to nonmetrt^xilitan areas purauant to this eec- 
tion in anv fiscal year shall not be leas than 20 nor more tlian 25 per 
centum of the total amount of luch aasutance.". 
Sepott to (3j Hot later than March 1, 1984, the Secretary shall report to the 

CongTHH. Congress on the impact of the last sentence of secUon 213(dX2) of the 

Anit, p. 1175. HousingandCommunity Development Act of 1974. 

42 use 1437c. (b) Section 5(c) of the United SUtes Housing Act of 1937 is 

amended — 

(1) by striking out the last sentence of paragraph (1); 

(2) by striking out paragraphs (2) and (3) and redesignating 
the remaining paragraphs accordingly; and 

(3) b^ adding at the end thereof the following: 

CoDvcnion "(5) During such period as the Secretary may preacribe for atMt- 

approval j,,- constructjon, the Secretan may approve the canverww of 

42 use 14371. public housing development autnority for uaa under section 14 or for 

uae for the acquisition and rehabilitation of property to be uaad in 

public housing, if the public housing sgency, afW consultation with 

the unit of load government, certifies that such assistance would be 

more effectively used for such purpose, and if the total number of 

units assisted will not be less than 90 per centum of the units 

covered by the original reservation. 

t^'r?^ "(G) The aggregate amount of budget authority which may be 

^ ™ i™*" obligated for contracts for annual contributions and for grants 

ftefV[i96 ^"^^ section 17 u increased by {9,912,928,000 on October 1, 1983. 

and by such sums as may be approved in appropriation Acts on 

October 1, 1934. 

"(TXA) Using the additional budget authority provided under 
paragraph (6) and the balances of budget authority which becocna 
available during fiscal year 1984, to the extent approved in appropri- 
ations Acts, the Secretary may reaerve authority to enter into 
obligations aggregating— 

"(i> not to exceed (1,289,550,000 for public housing, of which 

not to exceed $389,550,000 shall be available for Indian housing; 

42 use 1437f. "(ij) not to exceed $1,926,400,000 for assistance under section 8 

in connection with projects developed under section 202 of the 

12 use tTDiq. Housing Act of 1959; 

"(iii) not to exceed $1,550,000,000 for comprehensive improve- 
a use 14371. ment aasistance under section 14; 



yGoot^le 



PUBUC LAW 98-181— NOV. 30. 1983 
"(iv) not to excMd $2^17,160,000 for m 

"(v) not to excMd $540,000,000 for aanrtance under section 
8(eX6>. Aatp. 11S3. 

"(vi) not to ezcMd $242,115,000 for aanatance under lection 
8(0); Pot. p- 1181. 

"(vii) not to exceed $160,000,000 for aariatance under section 
17 with respect to rental rehabilitation: Poti. p- UK. 

"(viii) not to exceed $200,000,000 with respect to rental devel- 
opment under Mction 17; and 

"(is) not to exceed $1,603,170,000 for additional Meiatsnce 
under section 8. U USC i43Tr. 

"(B) Usinx the additional budget authority provided under para- 
graph (6) and the balances of budget authority which become 
Available during fiscal year 1985, to the extent approved in apprc^ri- 
ations Acts, the Secretary may reserve authority to enter into 
obligations aggrefating— 

"(i) not to exceed luch sums aa may be approved in an 
appropriation Act for public housing, of which not to eiceed 
such Buma as may be approved in an appropriation Act shall be 
available for Indian housing 

"(ii) not to exceed such sums as may be approved in an 
appropriation Act for assistance under section B m connection 
with proiects developed under section 202 of the Housing Act of 
1959; lauscmiq. 

"(ill) not to exceed such sums as may be approved in an 
Bppiopriation Act for comprehensive improvement asaistance 
under section 14; *i USC 1137i, 

"(iv) not to exceed such sums as may be aM>roved in an 
epmopriation Act for assistance under section 8(bKl); <2 USC I437f. 

(v) not to exceed such sums as may be approved in an 
apEvopriation Act for aMistance under seeUou 6(0X6^ Am p 1183. 

(vi) not to exceed such sums as may be approved in an 
aporopriation Act for assistance under section 8(a); Aa4 p. IISI. 

(rii) not to exceed $150,000,000 for assistance under section 
17 with respect to rental rehabilitation; ^^'- P- 'l^- 

"(viii) not to exceed $116,000,000 with reopect to rental devel- 
opnwnt under section 17; and 

"(ix) not to exceed such sums as may be approved in an 
Bpm^iriation Art for additional assistance under section 8. (2U3CI437f. 

"(Cl The specific authorities under this paragraph are suttject to 
miA a4JiiBtmenta as may be made under paragraph 15).". 

(c) Section 6 of such Act is amended by ad&ig at the end thereof il use i43Td. 
the following: 

"(h) On or af 
contract involv _ ... 

agency demonstrates to the satisfkctlou of the Secretary that the 
cost of new construction is lees than the cost of acquisition or 
acquisition and rehabilitation, including any reserve nmd under 
•uDSection (i), would be. 

"(i) The Secretary may, upon application by a public housing Rtmm fiind. 
■gen(7 in connection with the acquisition of housing for use as 
puUic housing, establish and set aside a reaerve fund in an amount 
not to exceed 30 per centum of the acquisition cost which shall be 
•vailable for use for nu^jor repaiTe to such housing. 

"(j) On or after October I.. 1983. in entering into commitments for UrgtKfamiix 
the development at public housing, the Secretary thai] give a prioi^ hounng. 



C«>t» 



yGoot^le 



PUBUC LAW 98-181— NOV. i 



42 use 1437<1. 
42 use 1437f. 



INCRBASZ IN SDIOLB PCRBON OCCUPANCT UmTATION 

Sic 202. Section 3(bX3> of the United State* Hounng Act of 1937 
ia amended by adding at the end thereof the following new aentence: 
"nw SecretaiT mar increase the limitation deacribM in the Mcond 
■mtence of tnii paragraph to not more than 30 per centum if, 
foUowing eonaultation witn the public housing agency invalved, the 
Secretary deteiminea that the dwelling units involved are neither 
being occupied, nor are likely to be occupied within the next 12 
inontha, by families or persons described in clauses (A), (BJ, and (O, 
due to Ute condition or location of nich dwelling units, and that such 

dwelling units may be occupied if made available to •u~~' 

described in clause (D).". 



PKiouTT roR nouanto 

Sk. 203. (a) Section 64cX4XA) of the United States Housing Act of 
1937 ia amended by inserting "or are paying more than 60 per 
centum of family income for rent" after "under this Act". 

(bKl) Section 8(dXlXA) of such Act is amended by inserting ", m« 
paying more than 50 per centum of family income for rent, ' after 
subatandard housing*^. 

(2) Section 8(eH2) of such Act ia amended by inserting ", aiv 
paying more than 50 per centum of family income for rent," afler 

substandard housing'^. 

(3) Section lOKeHlXB) of the Housing and Uttan Develop 
Act of 1965 b amended by inserting ", was paying n 
centum of ismily ii *" " *" " " ■"'" 



lopment 

^ .. r-j— = aSOper 

for rent," after "substandard housiog". 



"(k) The Secretary shall by regulation require each public bousing 
agency receiving assistance under this Act to establish and impla- 
ment an administrative grievance procedure under which tmanta 
wiU- 

"(Dbeadvissdof the spedTic grounds of any proposed advarsa 
puUic housing agency action; 

"(2) have an opportunity for a hearing before an Impartial 
par^ upcm timely request within any period applicable under 
subsection (1)-, 

"(3) have an opportunity to examine any documents or 
records or regulations related to the proposed action; 

"(4) be entitled to be repreaented by another person of his 
choice at any hearing; 

"(S) be entitled to ask questions of witnesses and have others 
make stat^ents on his behalf; and 

"(6) be entitled to receive a written decision by the public 
bouidng agen^ on the [sopoaed action. 
An Bgencjr may exclude from its procedure any grievance concvm- 
ing an eviction or termination of tenancy in 
■ ""^ ■ -" - * '-"-- - '«nantbegi 



yGoot^le 



PUBLIC LAW 98-181-NOV. 30, 1983 97 STAT. 1179 

which the Secretaiy detomiiiiea provides the basic elements of due 

"(1) Each public houaiiig agent? ahall utilize leaaee which — Imaim. 

'\D do not contain unreaaonable term* and conditicns; 
"(2) obligate the publk bousing agency to maintain the 
project in a decent, sate, and sanitary condition; 

VSl require the public housing agency to eiva adequate writ- 
ten notice of tamunation of the lease which shall not be leea 
than— 

"(A) a reasonable time, but not to exceed 30 days, when 
the health or safety of other tenants or public houaing 
agency employees is thraatened: 
"(B) 14 days in the case of nonpayment of rent; and 
"(C) 30 days in any other cae^, end 
"(4) require tli^t the public housing agency ma^ not terminate 
the tenancy except for serious or repeated violation of the terms 
or conditions of tne lease or for other good cause.". 

axpoBTiNO uquiKCHsKTa 

Sic 206. Section 6 of the United SUtes Housing Art of 1937 is AnUp^un. 
amended by adduig at the end thereof the fbUowing; *^ "*^ '*"<' 

"(m) The Secretary shall not impose any unneceMarily duplicative 
or burdensome reporting requirements on tenants or public hearing 
agencies aasiated under this Act". 

AMKNDinNTB AJTSCTTNO TKNANT KENn OS CONTSIBUTtOm 

•-. 206. (a) SecUon 3(a) of the United States Housing Act of 1987 42 USC 143I>- 



(1) by inserting the (bUowing immediately after the first 
sentence: "Reviews of family income ehall be made at least 
annually."; and 

(2) bv inaerting after "under this Act" in the final sentence 
the following: 'Tother than a family assisted under section 
8(o))". 

(b) Section 3(b) of such Act is amended by striking out the period 
at the end of paragraph (2) and inserting in lieu theretrf' the follow- 
■•"^ ", except that tne Secretary m» establish income ceiling 
" " ■ n of^thi " ' ■' 



higher or lower than 60 per centum of^the median for the area on 
the bans of the Secretary's findings that such varlat' 
sary because of unusually high or low family incomes 



the bans of the Secretary's findings that such variations are n 
sary because of unusually high or low family incomes.", 
(c) Section 3(bX5) of the United State* Houaing Act of 1937 is 



amended to read as followK 

"(5) Hm term 'adjusted income' means the Income which remains 
after excluding — 

"(A) $4B0 for each member of the family residing in the 
household (other than the head of the household or his 
spouse) who is under 18 yean of age or who is 16 years of 
*S!6 or older and is disabled or handicapped or a lull-time 
Student; 
"(B) 1400 for an; elderly family; 

"(Q medical expenses in excess of 3 per centum of annual 
famiily income for any elderly family; and 

"(D) child care expensea to the extent neceesary to enable 
another member of the family to be employed or to furtiier 
bis or her education,". 



37-922 0-84-3 



yGoot^le 



97 STAT. 1180 PUBUC LAW 98-181-NOV. 30, 1983 



tenant occupying houaing aaststcd under tlw muthoritie* amended hf 
ibit Mction or nibaectiona ta) through (h) of Mctioo 322 of the 
HouBing and Cominunitr Development Amendtnents of 1981 (bei*- 
inafter referred to aa "asaiEted houaing") on or before the c fl bc ti Te 
date of regulationa implementing this aection: 

(A) Notwitbatandinc anv other proriaion of thia Mctioa or 
flubeectiona (a) through (h) of eectiMi 3ZZ of the Houaing and 
Communitr Development Amendmenta of 19S1, the Secretarx of 
Houaing and Urban Development (hereinafter retierred to as the 
"Secretarjr") may provide for delaTed appUcahilit^, or for atafed 
implementation, of the procedurea for determining rente or 
contributiona, ai appropriate, required by euch provisions if the 
Secretary determines that immediate application of such prooe- 
durea would be impracticable, would violate the tenna of eziat- 
ing leases, or would result in extraordinary hardship for anj 
class of tenants. 

(B) The Secretary shall provide that the rent or contributioo, 
as appropriate, required to be paid by a tenant shall not 
increase aa a result of the amendments made by this aectioo and 
■ufaaections (a) through (h) of aection 322 of the Houaing and 
Community Development Amendments of 1981, and aa a result 
of any other provision of Federal law or regulation, knr mora 
than 10 per centum during any twelve-month period, unMi the 
increase above 10 per centum is attributable to Jncieasaa ta 
income which are unrelated to such amendmenta, law, or 
rwulation. 

(2) Tenants of assisted housing other than those referred to m 
paragraph (I) shall be subject to mmiediate rent payment or cootri- 
Dution determinations in accordance with applicable law and with- 
out regard to the provisiona of para^jdi (1), but the Secretary shall 
provide that the rent or contribution payable by any such tenant 
who is occupying i™'*«*ar< housing on the eflective date of aiw 
provision of Federal law or regulatim shall not increaae, as a raauR 
of any such proviwon of Federal law or regulation, by more than 10 
per centum during any twelve-month period, unleaa the increMe 
above 10 per centum ia attributable to increases in income which ate 
unrelated to such law or rtyulation, 

(3) In the case of tenants receiving rental assistance under sactiaB 
521(aXl) of the Housing Act of 1949 on the effective date of Oita 
section whose assistance is converted to assistance under sectiroa 6 of 
the United States Houaing Act of 1937 on or after such date, the 
Secretary shall provide that the rent or contribution payable bj any 
such teiunt shall not increase, as a result of such converskw, iff 
more than 10 per centum during any twelve-month p ' ' 

the increaae ahove 10 per centum is attributable to 

income which are unrelated to such conversion or to any p 
of Federal law or regulation. 

(4XA) Notwithatutding any other proviaion of law, in the a 

the ConversicHt of any assistance under aection 101 of the Housioc 
and Urban Development Act of 1965. section 236(fXZ) of the National 
HoiMing Act, or section 23 of the United States Housing Act of 1937 
,_..-_ .(.-.... . .1 . ._^_ _».,._ . J jjj yj^ Houaing and 



*2 use lM7f. 



D eflect before the date of the e 
Community Development Act of 1974) to assistance under si 
of the United States Housing Act ot 1937, any increase in ram 
payments or contriliutiona reaulting from such conversion, and tma 



yGoot^le 



PUBUC LAW 98-181— NOV, 30, 1983 97 STAT. 1181 



the Bmendmenla made b; thii aectioii of any tenant be) 



■uch aaiiatance who ia uxty-two yean of age or older may not exceed 
10 per centum per annum. 

(B> In the CAM of any euch converaion or aaiifltance occurring on or 
■iter October 1, 1981, and before the date of the enactment of thia 
aection. the rental p^moenta due after anch date of enactment by 
any tenant beneAtlng from aueh aasiatance who waa aiz^-two veara 
of age or older on the date of mich convenion ahall be computed as if 
the tenant's rental payment or contribution had, on the date of 
convenuon, been the leaaer of the actual rental pej^ment or contribu- 
tion required, or 25 per centum of the tenant's income. 

(5) The limitations on increasee in rent contained in paraKrapha 
(IXB), (2), (3), and (4) ahall remain in effect and mav not be changed 
ir auperaeded exceiA by another provision of law which amende tnia 



.}) Aa uiwd in thia Bubaection, the tarm "contribution" means an 
amount repreaenting 30 per centum of a tenant's monthly adjusted 
income, 10 per eenttun of the tanant's monthly income, or the 
deaicnatad amount of welfare asristance, whichever amount ia used 
to determine the monthly aasiatance payment for the tenant under 
section 3(b) of the UnitMl SUtaa Ho««an« Act of 1937. 

(7) The jnvrislons of sufaaectlons (a) uirou^ (h) of section 322 of 
the Housua and Communi^ Development Amendmenta of 1981 
shall be implemented and fully applicable to all affected tenants no 
later than Ave veara following the date of enactment of auch amend- 
ments, except tKat the Secretary m^ extend the time for implemen- 
tation if the Secretary det«rmmes that full impleir"~*-"~ —"■•■* 



Sh^ 207. Section 8 of the United SUtes Houwng Act of 1987 is « use imr 
amended by adding at the end thereof the following: ""■ p i'^ 

"(oXl) In connection with the rental nhabilitation and develop- ^''^'^^ 
ment program under section 17 or the rural houaing preaervation ^:!r' iW 
grant pn«ram under section 533 of the Housing Act of 1949, or for ^ ^' l^' 
other purpoaes, the Secretary is authorized to CMiduct a demonstra- ^*^ ^ 
tion program using a payment standard in accordance with this 
Bubaection. The payment standard shall be used to determine the 
monthly assistance which may be paid for an* family, as provided in 
paragr^h <2) of this aubaertion, and shall be baaed on the fair 
market rental eatablished under mbaection (c). 

"(2) The monthly asaistance payment for any family shall be the Monthly 
amount l^ which the payment standard for the area exceeds SO per 
centum m the family^ monthly a4juated income, except that such 
monthly asnstance payment ahall not exceed the amount by which 
the rent for the dwelling unit (including the amount allowed tor 
utilitiee in the caae of a unit with aepvato utility metering) exceeds 
10 per centum of the family's monthly income. 

'\S) Assistance payments may be made only for (A) a family 
determined to be a very low-income family at the time it initially 
leoeivea assistance^ or (B) a family previously awisted under this 
Act. in selecting funilies to be assuted, prefennce shall be given to 
families which, at the time they are seeking assistance, occui^ 
substandard housing, are involuntarily displaced, or are paying 
DKne than 50 per centum of family income for rent 



yGoot^le 



PUBUC LAW 98-181— NOV. 30. 1983 

"») The Secretary ihAU uw wlNtentuair all of the authoritj to 
enter into contracta under thia aubaection to maka aMiitanf fmr- 
meota for familiea i«aidiiig in dwelling to be ichabilitatad wiUt 
uaiataiKa under lection 17 and Tor families diaplaced ai a raault cf 
rental houaiiu devehqiment asaisted under auch aection or aa a 
raauk of actintiea oaaiated under aection 633 of the Hounns Act of 
1»49. 

"(5) If a family vacates a dwelling ujut befora tba expiration of « 
leaae term, no aaajatanca payment may be made with respect ta thm 
unit after the month durine which the unit was vacated. 

"(6) A contract with a public bouaiiv agcn^ tar annual coatribit- 
tima under this aubeectioo shall be for an initial term of vz^ 
months. The Secretary shall require (with respect to any unit) that 
(A) the public bousini ^ency inspect the unit Mfera anjr assiitanca 
payment ma; be made to determine that it meata houainc ooali^ 
standards for decent, safe, and eanitary houaing eatablishsd bj tliia 
Secretary for the purpoae ol thia eection, and (B> the public houaiBi 
■ e annual or more frequent inspection 



■ any auc^ Miluiv 
is promptlv corrected by the owner and the correction verified hj 
the public nousing agency. 

"(iXA) Tlie amount of assistance payments under this iiibaectioB 
may, in the disoation of the public housinB agency, be adjusted aa 
frequently as twice during any five-year period where ntcsssaiy to 
assure continued affordability. The aggregate amount of adjust- 
ments punuant to the preceding sentence may not exceed the 
amount of any excess of the annual contributions provided for in the 
contract over the amount of assistance paymenta actually paid 
(including amounte which otherwise become available during the 
contract period). 

"(B) For the purpose of subparagraph (A), each contract with a 
puUie houaing agency for annual contributions under this subaae- 
tion shall prcwide annual contributions equal to 115 per cent u m of 
the eatimatad aggregate amount of aaeistance required during tha 
fintyear of the contract. 

"(O Any amounts not needed for adjustments under subpara- 

Kph (A) may be used to provide assistance payments for additMoal 
lilies. 



regarding the impact of such ad)uatmenta on Uie number of fkmiUea 



"(8) A puUic housing agency may utilize not to exceed S par 
centum of the amount of authority available under this subaeetuti 
to provide assistance with respect to cooperative or mutual honain( 
which has B resale structure which maintains affordability tor lower 
income families where the agency determines such action will aMiat 
in maintaining the affordability of such housing for such familiaa.". 

KKNSWAL or SBCnON I CONTaACTS 

Sac. 208. Section 8(dX2) of such Act ia amended by adding at the 
end thereof the following: "A contract under thia section may not ba 
attached to the structure except where the Secretary apecifieally 
waives the foregoing limitation and the public houainf scncy 
iqiprovea such action, and the owner agreea to rehabihtate tba 



yGoot^le 



PUBUC LAW 98-181— NOV. f 

•tructura other than with Maistance under thii Act and otherwiM 
compliM with the requirements or this section. The a^gngKte term 
of such contract and any contract estenaion BUiy a' 
180 months.". 



e asKregat 



Sk. Z09. (a) The United States Housing Act of 1937 is 

(1) Section 8(b) is amended by striking out ", 
atnicted, and subetanttolly nhabilitated". 

(2) SecUon 8(bX2) is repealed. 



(5) as paragrapha (1) and (2), respectively. 

(4) SecUon m) of such Act ii repealed. 

(5) Section 8 of such Act is amended by striking out subaeo- 
tiona a) and (m). 

(6) Section e(n) of such Act is amended by striking out "(eXS) 
and eubeection (i)" and inserting in lieu thereof "(eX2)". 

(b) Ute amendmenta made by auDeection (a) shall take effect on 
October 1, 1983, except that the provisions repealed shall remain in 
effect— 

(1) with respect to any fiinda obligated for a viable prqiect 
under aection 8 of the United States Hotwing Act of 1937 prior 
to January 1, 1984; end 

(2) with respect to any project financed under section 202 of 
the Housing Act of 1969. 

SINQLK BOOM OCCUPANCt UOtUtNO 

Sic 210. SecUon 8(n) of the United States Houaiog Act of 1937 is 
amended — 

(1) by inaerting "subsection (bXD." before "subaection (aXS)"; 

(2) by inaerting a comma after "(eX5)"; 

(3] Iq' striking out "and" at the end of paragraph (1); 

(4) Iqr striking out the period at the end of paragraph (2) and 
inaerUng in lieu thereof ' : and"; and 

(5) by inserting after paragraph (2) the following new 
paragraph: 

"(3) in the case of aaaiatance under subsection (bXl)_, the unit 
of general local government in which the property is located 
ana the local pubuc housing agency certi^ to the Secretary that 
the property complies with local health and safety standards.". 



Sic 211. Section 8 of the United Sutas 



M (as defined in i 



42 use 143Tf. 



Certification. 



Act of 1937 b « use l*aTf. 



^ MistelderWfi 

who elect to live in a shared houaiiw a , 

benefit as a remit of sharing the fociutiea <rf' a dwelling with others 
in a manner that effecUvely and efficiently meets tneir housing 
needs and thereby reduce* vmr cost of housing, the Secretary sbsfl 
permit assistance provided under the euotlng housing and moderate 
rehabilitation programs to be used by such families in such arrange- 
ments. In carrying out this subeertion, the Secretary shall issue 



yGoot^le 



97 STAT. 118) PUBUC LAW 98-181— NOV. 80, 1983 

n habitability Mandarda for the purpcae of unii 
'unUiea wl " 
sd housing 

PAYM SNTS FOB OPKIMIION Of LOWKS INCOMI HOUBINO 



_ . . . unitanr homing for such famUi 

account the ipecial circumitances of shared houaing.". 



Sic. 212. Section Wc) of the United SUtes Houaing Act of 1937 ii 



(1) by Htriking out "and" after "October 1, 1980,"; and 

(2) bjr inwTting before the period at the end thereof ths 
following: ", not to exceed $1,600,000,000 on or after October 1, 
1983, and by auch aumi aa may be neceeeary on or after October 
1, 19M.". 



Sk. 213. Section 16(b) of the United SUtea Housing Act of 1937 m 
amended by striking out "10 per centum" and inserting in lien 
thereof "26 per centum". 

DEMOLITION AND DISPOSmON OP PUBUC HOUSINQ 



"Sbc. 18. (a) He Secretary may not approve an application by a 
public housing agency for permiaaiou, with or without financial 
BMistsnce under Siia Act, to demolish or dispose of • public houMnc 
project or a portion of a public houaing project unleaa the Secretuy 
has determined that — 

"(1) in the case of an application proposing demoUtioB of • 
public housing prttject or a porti<» of a public houaing n~~"~* 
the project or portion of the prqject ii obsolete aa ' 

condition, location, or other favors, ■"■n^g it v ___ 

housing puHMaee, or no reaaonable program of tnodiSeatkna ii 



feasible to return the prqject or porticm of the project to useful 
life; or in the case of an application proposiiu the demolitka tf 
only a portion of a project, the demolition will help to aanire the 
useful life of the remaining portion of the project; or 

"(2) in the eaae of an appQcation propomng dlspoaltioa of raal 
property of a public housing agency by mIb or other tranrfM' — 
'XAXi) the property's retention is not in the bast intereata 
of the tenants or the public housing agency becanae dercl- 
opmental changes in the area surrounding the prqfact 
adversely affect the health or aafetv of the tenants or tba 
feasible operation of the project by the public houaing 
agency, bMause disposition allow* the acquisition, devdcn- 
ment, or rehabilitation of other properties which will M 
more efFIciently or effiectivel^ operated aa lower income 
housing projects and which will preaerve the total amount 
of lower income housing stock available in the commwiit7, 
or because of oUier factors which the Secretary ilnlmnihisa 
are consistent with the best interests of the tenants and 
public houMng agency and which are not inconsistent wHh 
Other provisions of this Ac^ and 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

"(ii) for propertr other than dwelling units, the property 
ia excew to the need* of a project or the disposition is 
incidental to, or doM not interfere with, continued oper- 
ation oTa pK^BCt; and 

"(B> the net proceeds of the disposition will be used for (i) 
the payment of development coat for the project and for the 
retirement of outstanding obli^tions uaued to finance 
original development or nwdemuation of the project, and 
(ii) to the extent that any proceeda remain after the Bp)>lica- 
tion of |>rocecds in accordance with elauae (i), the provision 
of housing assistance for lower incmne families through 
such measures as modernization of lower income housing, 
or the acquiaition, development, or rehabilitation of other 
properties to operate as lower income housing. 
"(b) The Secretary may not appnrn an application or furnish 
assistance under this section under this Act unless — 

"(1) the application from the public housing agency has been 
developed in consultation with tenants and tenant councils, if 
any, who will be affected by the demolition or dispoaition and 
contains a certification by appropriate local government offi- 
cials that the propoaed activity i* consistent with the applicable 
housing assistance plan; and 

"(2) ul tenants to be displaced as a result of the demolition or 

disposition will be given assistance by the public housing agency 

and are relocated to other decent, safe, sanitary, and alfordaUe 

housing, which is, to the maximum extent practicable, housing 

of their choice, including housing assisted under section 8 of this 

Act 

"(c> Notwithstanding any other provision of law. the Secretary is 

authorised to make available financial aaaiatance for a|>plications 

approved under this nction using available annual contributions 

authoriied under section 6(c). 

"(d) The provisions of this ssction shall not apply to the convey- 
ance of units in a public bousiiw project for the purpose of providing 
honeownership opportunities for lower income families capable of 
assuming the resp(MuU>ilities of homeownership.". 
(b) Section 6(f) and section 14(0 of such Act are repealed. 

RNANCmO UM rTATTONS 



"rtNANCWO UinTATIONS 



regarding obligations financing public housing projects author- 
ized by aection 6(c) if such obligationa are exempt from taxation 
under section 11(b), or if such obligationa are inued under 
eection i and such ofaligations are exempt from taxation; and 
'UZi mav not enter into fontractji for neriodif naymenta to the 
) the Bank of 
aing obligationa (as described in the first sentonce of 

16(b) of the Federal Financing Bank Act of 1973) iaaued 

by local public housing agencies for purposes of financing public 
houaing projects authorized by section 5(c) of this Act.". 






yGoot^le 



84 

PUBUC LAW 98-181— NOV. 30, 1983 



Sac. 216. "Hwre are authorized to be appropriated not to exoaad 
(60,000,000 for fiacal year 1984 for th« Secretary to make granta l« 
States, units of general local government, and Indian trttna, and 
DonproTtt organizations which will operate programs oo bahalf of 
mch units Of general local government and Indian tribet, for tlM 
provision of shelter and eaaential services for individuals wbo mrm 
subject to life-thrBBtening situations because of their \atk at hooa- 
ing. Such granta shall be awarded on the basis of the «ct«nt of the 
need for emergency housing in the mm where the prefect is, or wiU 
be, located, taking into account regional variations in the cost of 
providing shelter. Such grants ma^ be used to rehabilitate wriWing 
structures in order to provide basic shelter, to maintain itructurM 
providing such shelter, to pay for utilities and the fiimishing of audi 
■belters, to inovide for any health and safety meaaurea that mn 
required to protect the individuals using such shelter, and for any 
activity described in section 105(a) of the Housing and Communis 
Development Act of 19T4 that is consistent with the purposes of this 
paragraph. A structure which is rehabilitated with awiitancs undtor 
this paragraph shall be used for emer^nc^ housing for ■ period of 



OPXKATINO ASSISTANCS rOR TKOUBLin UULTirAMILT KOUStNO 



Sac. 217. (aXl) Section 201(b) of the Housing and (. 

12 use Development Amendments of 1978 is amended £y inserting belbs* 

ITlSi-la. the period at the end thereof the following: ", without ngaid to 

whether such projects are insured under the National Housing Act". 

(2) Section 201(b) of such Act is amended by inserting belm the 
period at the end thereof the following: ", without regard to iriwtttsr 
such projects are insured under the National Housing Act". 

(3) Section 201(cXlXA) of such Act is amended by striking out tb« 
first semicolon and all that follows through "1979". 

(bXl) Section ZOl(a) of such Act is amended by striking out "or 
under" and inserting in lieu thereof ", the United States Housing 
Act of 1937, or". 

(2) Section 201(cKl) of such Act is amended— 

(A) by striking out "or" at the end of subparagraph (A); 

(B) by redesignating subparagraph (B) as subparagraph (C); 

(C) by inserting after subpersgraph (A) the following new 
subparagraph: 

"(B) is assisted under section 8 of the United States Housing 
42. use l43Tf. Act of 1937 following conversion to such assistance from sssiM 

12 use 17151-1 ance under section 23G of the National Housing Act or sactJasi 

12 use nou, 42 101 of the Housing and Urban Development Act of 1966; or". 

V_^.ii^.L.. . (c) Section 236(rx3) of the National Housing Act is aroendsd by 

striking out "September 30, 1982" and inserting in lieu tbsraof 
■ !r 30, 1985". 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 



Sic. 218. (s) Section 236(fl of the National Housing Act i« amended 
by adding at the end thereof the following: 

"(4) To ensure that eligible tenanta occupying that number of 
unite with respect to which aasiatanee was being provided under thie 
■ubeection immediately prior to the date of enactment of thia een- 
tence receive the benefit of assiatance contracted for under para- 
graph (2), the Secretary shall offer annually to amend contracts 
entered into under thia Buboection with owner* of prq|ecta asaiated 
but not subject to mortgagee insured under thia aection to provide 
BufTicient paymenta to cover up to 90 per centum of the neceaaary 
rent iiicreaaea and changes in the incomes of eligible tenants, 
subject to the availability of authority for such purpoee under 
section 6(c) of the United States Housing Act of 1937. The Secretary 
shall take such actions as may be necessary to ensure that pay- 
ments, including paymenta that reflect necessary rent ihcreasea and 
changes in the incomes of tananta, are made on a timetv baaia for all 
unita covered bv contracts entered into under paragraim (2).". 

(b> Section 236(iXl) of such Act is amended by adding at the end 
thereof the following new sentence: "The Secretary ahall utilize, to 
the extent neceesary after September 30, 1984, any suthcHity under 
thia section that is recapturea either aa the result of the conversion 
of houaing projects covered l^ assistance under subsection ((K2) to 
eoDtracta for assistance under section 8 of the United States Hous- 
ing Act of 1937 or otherwise for the purpose of '"■^iny assistance 
payments, including amendments as provided in 8ubaect—~ "■' — "^ 
respect to housing projects assisted, but not subject ti 
insured, under this aection that remain covered by ai ' 
subsection (fX2).". 



12USC171SI-I. 



(h),with 
irtgagea 



S*C. 219. (a) Section 101(g) of the Housing and Urban Development 
Act of I96S is amended by adding at the end thereof the following: 
'To ensure that qualiTied tenants occupying that number of units 
with respect to which assistance was being provided under thia 
aection immediately prior to the date of enactment of this sentence 
receive the beneHt of assistance contracted for under thia section, 
the Secretary shall offer annually to amend contrw:ts entered into 
with owners of projects sasisted under thia section but not subject to 
mortgagea insured under title U of the National Housing Act to 
provide sufTicient payments to cover up to 90 per centum of the 
necessary rent increases and changes in the incomes of qualified 
tenants, subject to the availability of authority for auch purpow 
under section 5(c) of the United Sutes Housing Act of 1937. The 
SeGTBtary shall take such actions as mav be neceaaary to ensure that 
paymenta, including payments that reflect neceanry rent ii 
and chanma in the incomes of tenants, are n ' 
for all uiuta covered by contracts entered intL . 

(b) Section 101(1) of such Act is amended by adding at the end 
thereof the following new sentence: "The Secretary shall utiliie, to 

the extent necessary after ""' — »-— "" •""• .■.__-, 1._ 

this aection that is recapti 

of housins prqiecta covered by 

contracts Tor aasiatauce under sei 



e made on a timely bada 



42 use 143Tr. 



ContncM tnd 
paymtntM. 
12 U9C 17011. 



42 use 143Tf. 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

respect to houainK projects HiUtad under thia section, but not 
subject to mortewea insured under the National Housing Act, tlut 
remain covered E^ aasistance under this section; and (2) if not 
required to provide assistance under this section, and notwithstand- 



UPOtT KKGAKDINO MOUSINC NHOHBOBHOOD STKATKOy 



Sic. 220. Not later than the expiration of the one hundred twenQF- 
day period following the date of the enactment of thia Act, l£m 
Secretar? shall transmit to the CongresB a report with raapect to the 
program established by the Secretary to provide assistance under 
section 8 of the United Sutcs Housing Act of 1937 to uniU of 
general local government in areas where concentrated housing and 
community development block-grant assisted physical developmoit 
and public service activities are conducted under title I of the 
Housing and Community Development Act of 1974. Such report 
shall include the following information for each unit of general kic«l 
government selected to participate in such program: 

(1) the total number of dwelling units located in such unit of 
general local government that have been initially rcasrvcd bj 
the Secretary for aaaistance under such program, and anj 
subeeauent revision of such number 

(2) tAe total amount of funds pledged by such unit of genetal 
local government for all public improvements and services, amd 
actual and future expenditure, in connection with such 

located in such unit of 

„ „ _._ _ _jen initially reserved by 

the Secretary for assistance under such program, including the 
number of units completed and occupied; 

(4) the total number of dwelling units required to completa 
each local program, as estimated by such unit of general local 
government; and 

(5) the total number of local programs considered completed 
by such unit of general local government. 

CONSmtKATION OF UnUTY PATMENTS MADK ST TENANTS 



12 use ni5i-l. 
12 U3C noii-6 



42 use GOZ note Sac. 221. Notwithstanding any Other provision of law, for purpoMB 

of determining eli^bility, or the amount of benefits payable, und^ 

42 use 601 el. chapter A of title IV of the Social Security Act. any utility payment, 

'~ the utility allowance, made by a person living in a dwelling 



unit in a lower income housing project assisted under the Unil 
SUtca Housing Act of 1937 or section 236 of the National " 
Act shall be considered to be a rental payment. 



Sec. 222. (ai The Secretary of Housing and Urban Developtnsnt 
Chereinsfter referred to as the "Secretary ') shell carry out a demon- 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

familiss who mide in public houung. The Secretary ahaU deaigii 
■uch program to determine the eitent to which the availability of 
child c«t« Mrvices in lower income homing prqjecta facilitate* the 
employability of the head* of such families and their ■pouaea. 

(b) To carry out the demonstration under thia lection, the Seci:«- 
taiy ahall authorize the uae (j public housing agency facilities 
located in areas where — 

(1) the units of general local govemnient have indicated that 
funda under title I of the Housing and Community Development 
Act of 1974 will be made available to make minor renovations to 
the facilities to make them suitable for use as child care fadli- 
tiea, and to suiqiort child care services in such facilities 

(Z) the pubUc housing agency does not have a child care 
service* program in operatton prior to the demonstration pro- 
gram under this section; 

<3) the propoaed child care servicea program will serve pre- 
school children during th» day, elementary school children aAer 
school, or both, in order to permit eligible perstms who head the 
families id such children to obtain, retain, or train for 
employment; 

(4) the proposed child care service* program of such public 
housing agency is designed, to the extent practicable, to involve 
the participation of the parents of children benefiting from such 
program, and to employ in part-time position* elderly individ- 
uals who reside in the lower income housing project involved; 

(5) the proposed child c 
hmiaing agency will compl. 
laws, regulations, and ordinances. 

te) The Secretary shall conduct periodic evaluations of each child 
care services demonstration carried out under this section for pur- 
poses of determining the efTectivenees of such demonstration in 
providing child care eervice* and permitting eligible persons who 
head lower income families and their spousea residing in public 
housing to obtain, retain, or train for employment 

(d) Nothing in thia section may be construed as authorizing the 
Secretanr to eetablish any health, saret:r, educational, or other 
standara with respect to child care services or facilities assisted 
with grants received under this section. 

(e) Not later than the eipiration of the two-year period following 
the date of enactment of this Act, the Secretary shall prepare and 
submit to the Congress a detailed report setting forth the lindingB 
and conclusions of the Secretary as a result of carrying out the 
demonstration program established in this section. Such report shall 
include any recommendation* of the Secretary with respect to the 
establishment of a permanent program of using public housing 
facilitiea to be used in providing child care service* in lower income 
housing prqjects. 

HOUSmO FOB THB tU>I>LV AND HAKDICAPPBD 

Sk. 223. (aXl) Section 202(aX3) of the Housing Act of 1959 is 
amended by inserting the following before the period at the end 
thereof^ ", except that such interest rata plus such allowance shall 
not exceed 9.25 per centum per annum". 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

(2J The amentlinent made by peragraph (1) «h«ll apply onlj with 
respect to loan agreementa entered into after Septeinlwr 80, 1962, 
and prior to Octobsr 1, 1984. 

(b) Section 202(aK4XBXi) of such Act ia amended— 

(1) ty itriking out "and" after "1980," in tl 

(2) by inaerting ", to (6,400,000,000 on October 1. 1988, and to 
such mm aa may be approved in an appiopriation Act on 
October 1. 1986," after "1981". 

<c) Section 202(aX4XO of auch Act ia amended by atrikinc out 
"$860,848,000" and "1982" in the ncond aentenee and insertiiiK IB 
lieu tbereoT "1666,400,000" and "1984", respectively. 

(d) Section 2D2(h) of auch Act ii amended— 

(1) by rtriking out "1978" and inaerting in lieu thereof "1968"; 

(2) by inaerUng before the period at the end of tha firat 
aentence the following: ", and persona deacribed in Wl b fiaf- 
graplM (B) and (O of nibsection (dX4) who have been laleaaeJ 
treai reaidBntial health treatment fiacilitiea"; 

(8{ in paragraph (1), by atriking out "handicapped paraon^ 
— i inaerting in lieu theiwrf "persona dfacribed in the bat 
itenc* of this aubeection"; 

(4) in paragraph (2), by striking out "handicapped peraona" 
and inanling in lieu thiBreof "peiaona deacribed in tbe firat 
sentence of this subaection who are"; 

<5) in paragrairii (1), by striking out "and" at the end tfaecvo^ 

(6) in peragrai^ (2), by atriking out the period at tha and 
thereof and inserting in lieu thereof "; and". 

(e) Section 202 of audi Act ia amended by adding at tbe end 
thereof the following new subaectiont: 

EfTKiancy units. "(iXl) Unleas othMwise requested by the sponsor, « maaimum tt 

25 per centum of the unite in a project financed under thia sectioB 
may be eRiciency units, subject to a determination by the Saoaten 
that auch units are appn^niato for the elderly or handicapcaq 
population reaiding in tiie vicinity of such project or to be aervM iff 
suchproiect. 

"(2) The Secretary may require a aponaor of a housing prgjsct 
Tmanced with a loan under this section to deposit en amount not to 
exceed SiO,000 in a special escrow account to assure the commit- 
ment and long-term management capabilities of such iponaor. 

Per unit cart "(3) In eatuilishing per unit cost limitetions for purpoaea of this 

liniitatigiu. section, the Secretary ahall take into account deaign flsaturea nacaa- 

BBTV to meet the needs of elderly end handicapped reaidenia, and 
sucn lunitationa shall reflect the cost of providing such feature*. Tlta 
Secretary shall tdjuat the per unit cost limitetions in effect OB 
January 1, 1983, not leas than once annually to reflect changes lit 
the general level of construction coate. 

p,^pj™„nt — ' •••■^1 > ■^- o • ' 



such loan, unless such fn^m^ 
ment or transfer is made as pert of a tranaaction that will enaora 
that the project involved will continue to operate until the original 
maturity date of auch loon in a manner that will provide rantal 
housing for the elderly and handicapped on terms at lea st as 
advantageous to existing and ftiture tenante aa the terms requir«d 
by the original loan agraement entered into under this sectioa and 
any other loan ogreemente entered into under other proviaioBa «f 
law. 



yGoot^le 



PUBLIC LAW 98-181— NOV. 30. 1983 I 

"<2) "Ri* Secretai> may not sell any mortga^ held by tb« Secre- 
UiT as aecurity for s loan mode under this MCtion. 

(kXl) In the proceea of MlecUng project* for loans under thie 
BMtion, the Seci«ti>Ty shaU Mture tAe inclusion of special deaign 
features and congregate space if neccMary to meet the special needs 



"(2) lite Secretary liiall encourage the provision of small and 
scattered site group homca and independent living fadlitiea tor 
nonelderly handicapped persons and fainiliea. 

"(1) The basis for selection of a contractor to be employed in the Selection 
development or construction of ■ prtiject aasiBted under tnis section controctoi 
shall M determined by the pnnect sponsor or borrower if the 
development ccet of the project is less than $2,000,000, if the project 
rentals will be leea than 110 per centum of the fair market lent 
applicable to projects financed under this section, or if the iponsor of 
the project is a labor organization, 

"(m) Nothing in this section authorizes the Secretsir to prohibit 
any sponsor man voluntarily providing fiinds from other sources fbr 
amemtiea and other features of appropriate design and construction 
suitable for inclusion in such project if the coet of such amenities is 
(1) not financed with the loaii, and (2) not taken into account in 
detennining the amount of Federal subsidy or of the rent contribu- 
tion ^tenants.". 

coNCBKiAn snvicB 

Sbc 224. (a) Section 408 of the Congregate Housing Services Act of Iteport to 
1978 is amended by adding at the end thereof the following new ^IS^B 



"(c) Not Uter than March IS, 1984, the Secretary shall prepare 
and submit to the Congress a nport evaluating the effects of any 
changes in the administration of the congregate housing services 
promm eetabUihed in this title which have occurred since January 
1, 1983. Such report shall include an evaluation b^ the Secretary of 
the reorganization or decentralisation c^ the administration (rfauch 



program, and any Iwislative recommendations of the Secretary for 
the establishment of ■ permanent congregate housing services pro- 
gram and the reasons for such recommendations.". 

(b) Section 411(a) of the Congregate Housing Services Act of 1978 
is amended — 

(1) by striking out "and" at the end of paragraph (3h 

(Zi t^ striking out the period at the end oTparagraph (4); and 

(3) by adding the following at the end therecrf: 

"(5) for fwd year 1984. not to exceed (4.000.000; and 

"(6) for fiscal year 1986, such sums as may be necessary.". 

DmONSTmATION psoncT 

Sbc. 225. (a) The Congreas finds that— 

(1) the Department of Health and Human Servicee spends in 
excess of (5,000.000.000 annually for housing in the form of 
allowances for shelter for public assistance recipients; 

(2) States adroiniaterin^ the Department of Health and 
Human Servicee public sBsistAnce program often specify shelter 
allowaneea that have little relationship to the coet or the quality 
tS the housing in which public asBistance recipients live; 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

(4) the older rental buildingi in which many public Mrirtane* 
recipients live are in thoM netghborbooda that need tfaa airiat- 
ance of the program* of the Department of Housing and Urti«B 
Development for preservation and rehabilitation; and 

<5} tAere ia the potential for improving houaing tax maaj 
lower income famihea by coordinating State and local govttm- 
ment etforia in order to awure that familiea TeceiTing public 
awirtance paymenta from the Department of Health and 
Human Services are able to live in decent, safe, and MAttaiy 
housing. 

(b) "Hie purpoee of this section, therefoie, is to provide asristanoa 
to nnita or suieral local government and their deaiguated agendas 
in order to aavelop a program that will — 

(1) encourage the upgrading of housing occupied prinurilj by 
lower income fMnilies, including familiea receiving aasiatliiica 
under the aid for fainilies with dependent children pngraiii 
established under title IV of the Social Securitv Act; and 

(2) provide for better coordination at the local levd of tha 
efforts to assist familiea receiving public assistance from tha 
Department of Health and Human Servicea so that thoae tuai- 
liea will be able to occupy affordable houaing that is decent, 

safo, and sanitar ■ -■ - — • 

fiinds provided I 
Development. 

(c) "nte Secretarjr of Housing and Urban Development (beieaflar 
referred to in this section as the "Secretary") shall, to tlie e 
approved in appropriation Acts, a 



(d) In carrying out such project, tl ^ — ,-„_ 

to units of genera) local government, or designated agenciea tharvoC 
to carry out adminiatrativa plans appro v ed by the Secretair to 
accordance with subsection (e), and the Secretary may make granta 
to States to provide technical aaaiBtance for the purpoae of ■—'^^'^K 
auch units of general local government to develop and cany o«n 
auch plans. 

(eXl) Grants may be mode to States and units of general local 
government and agenciea thereof that apply for tlwro in a mawllT 
and at a time determined t^ the Secretary and Utat, in the cat* of 
units of general local government and their agencies, are selected On 
the basis of an administrative plan deecribed in such anplicatian. 
(2) No such administrative plan shall be selected bj the Secivtarj 
unless it seta forth a plan for local government activities that mrm 
designed to— 

(A) require or encourage ownen of rental housing occupied taj 
lower income families to bring such housing into compUaoea 
with local housing cedes; 

(B> provide tedmical aasistance, loans, or grants to asstat 
owner* deecribed in subparagraph (A) to undertake cost«Jbo- 
tiva improvements of such houidng; 
(Q worit with ttie State to eetabluh and implement a acbednla 
shelter allowancee for recipients ttf ai 



Utle IV of the Social Secunty Act based on buUding quality that 
will be applicable to buildings involved in thi* program; and 
(D) coordinate local housing inspection, housing rehabilitatiaa 
loan or grant assistance, rental aseiatance, and social servioa 
prosranH for the puRMae of improving the qualitv and afford- 
abiuty of housing for lower income fanuliee. 



yGoot^le 



PUBUC LAW 98-181— NOV. 30. 1983 

(3) Foncb received from any grsnt made b; the Secretai; fai ■ unit 
of gMWral local government ehall be nuule available for uw accord- 
ing to th« adminiatrative plana and may be used for — 

(A) technical aaaistance or finaJiciBi aaaiBtance to property 
ownen to upgrade housing project* deecribed in paragraph 
(2XA) of thii aufaoection; 

(B) temporary rental aaaistance to families who live in build- 
ing! aseiMed under this program and who are eligible for, but 
are not receiving, assistance under section 8 of the United 
States Housing Act of 1937, except that such fiuniltes shall not 
include fomiliea receiving assistance under title TV at the Social 
Security Act, and the amount of such rental assistance may not 
exceed 20 per centum of each grant received under this section; 

<Q housuig counseling and referral and other housing related 



<D> expenses incurred in administering the program carried 
out with funds received under this section, except that such 
expsnsss may not exceed 10 per centum of the grant received 
under this section; and 

(E) other apprt^triate activities that are consistent with the 
purpaaesof this section and that are approved by the Secretary. 
(0 Any recipient of a grant from the Secretary under this section 
■hall agree to— 

(1) contribute to the program an amount equal to 15 per 
centum of the funds received from the Secretary under this 
section, and the Secretary shall permit the recipient to meet 
this requirement by the contribution of the value of services 
carried out specifically In connection wlUi the program assisted 
under this tectim; 

(2) permit the Secretary and the General Accounting Oflice to 
audit its books in order to assure that the funds received under 
this section are used in accordance with the section; and 

(3) other terms and condi 
the purpose of carrying o 



<g) In making grants available under thia section, the Secretary 
■hall select as recipients at least 20 units of general local govern- 
ment (or their dewgnated agenciea). The selection of proposals for 
funding shall be based on criteria that result in a selection of 
pHtJeda that will enable the Secretary to carry out the purpose at 
this section in an effective and efTicient manner and provide a 
sufncient amount of data necessary to make an evaluation of the 
demonstratunt project carried out under this section. 

(hXU Not later than June 1. 1984. the Secretary shall transmit to 
the Congress an interim report on the implementation of the demon- 
stration under this section. 

(2) Hm Secrtttary shall transmit, not Uter than October 1, 1985, to 
both Hotises of the Congress a detailed report concerning the find- 
ings and eonclusiona that have been resched by the Secretary as a 
reault of carrying out this section, along with any legislative recom- 
mendations that the Secretary determines are necessary. 

(i) To carry out this section, there ere authorized to be appropri- 
ated not to exceed $10,000,000 during fiscal year 1984, and not to 
exceed (15,000,000 during fiscal year 19S5, to remain available until 
expended. 



yGoot^le 



97 STAT. 1194 



PUBLIC LAW 98-181— NOV. 30, 1983 



BlCnON 135 HOmOWNSK 

Sk. 226. (a) Section 23S(cXl) of the National Housiiig Act k 
amended — 

(1) b; itriking out "The" in the Tirst sentence and inaertinc in 
lieu thereof "Subject to the second sentence of this paragnqih, 

(2) by inserting after the first aentenee the following new 
sentence: "Assistance paymentj punuant to an; naw canti*ct 
entered into after September 30, 1963. that utilina authority 
approved in appropriation Acta for an; fiscal year beginning 
afUr such date may not be made for more than a lO-jear 

(b) Section 235(c) of such Act ia amended by adding at the end 
theieof the following new paragraph: 

"(3XA) There hereby ia eotobliBhed in the Treasury of the United 
States a fund, which, to the extent approved in approi»iatioD Acta, 
maj be used by the Secretary for purposes of carrying out aubpar*- 
graph (B). There shall be depoaitad into such fund (i) any aoaount 
recaptured under paragraph (2); (ii) any authority to mmkt aMHt- 
ance payments under subsection (a) that is committed for uM in ■ 
contract but is unused because the mortgage, loon, or advanca <f 
credit involved is refinanced or because such assistance payments 
are terminated or suapended for other reasons before the orii^n>l 
termination date of such contract; and (iii) any amount received 
under Hubparagraph (O. 

"(B) In the case of any homeowner whose assistance payments are 
terminated by reason of the 10-year limitation refernd to in para- 
graph (1), and who is determined by the Secretary to be unsble to 
assume the full payments due under the mortgage, loan, or advance 
of credit involved, the Secratoiv shall, to the extent of tlte avaiUiil- 
i^ of amounts in the hmd established in subparagraph (AX oontraM 
to make, and make, continued assistance paymenla on behalf of aud> 
homeowner. Such continued assistance payments shall be made in 
an amount determined in accordance with the applicable provisions 
of paragraph (1) or subaection (aX2X6) and for such period as the 
Secretary determinea to be appropriate. 

"(C) Any amounts in such fund determined by the Secretary to be 
in ezceas of the amounta currently required to carry out the i»mi- 
eioni of subparagraidi (B) shall be invested by the Secretary in 
obligations of, or obligationa guaranteed aa to both prindpsl and 
intereot by, the United States or any agency of the United Stotas.". 

(c) Section 235(hXl>of such Act is amended— 

(1) by striking out "and" after "1971," in the second smtenoK 

(2) Iqr inserting the following before the period at the end M 
such senten^: ", and by such sums as may be approved in an 
appropriation Act on or after October I, 1983 (from the addi- 
ticowl authority to enter into contracts made available on such 
date under the first sentence of section 5(c)(1) of the United 
Statee Housing Act of 1937)"; and 

(3) by inserting the following new sentences after the second 
sentence: 'The aggregate amount that may be obligated ovsr 
the duration of the contracts entered into with the authtti^ 
provided on or after October 1, 1983, may not exceed such suns 
of new budget authority as may be appropriated after ths date 
of enactment of this sentence. The Secretary shall begin lliiin 
new commitments and reservations to provide mortgage Insur- 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

WK* and aMUtance Miymenta under this MCtion before tha 
exparatSon of the SO^y period following the approval in any 



M tlM anactment of Uiia aentence.". 
Section 23S(U of nieh Act ia amended— 
(Din paragraph (3XA>- 

(A) br etriking the word "two-family" and inaerting 
"thre^-family" in lieu thervof; and 

(B) bv inaerting the worda "or a two-hmily" belbre the 
word "dwelling" Uu first time it appeara; 

<2) in paragraph (3XD)— 

(A) ty inaerting the wordi "or three-familT" before the 
word "dwellinr ; 

(B) by striking the figure "(55,000" and 
"S60/MW" in Uau^arwtf; and 

(C) tnr atriking the figun "t61,260" 
"166,260" in UeutharMf; and 

™,^. ... . ind thereof the foUowing . _ . 

... - ..,.. > mortgagea under thia aubaectioa, the 

Secretary may not dray inaurance on the basia that a mortgage 
inTcrivea a tw» to Uirae-tamily dwelling or ia to be tued to finance 
subatantial rehabilitation rather than new CMistniction. 
"(5) Aa a condition of insuring a mortgage o 
" " "ill nqnire vat n 

. ^ ._ ,_._, jenanta Ml the bi .___ 

of or dlglbUity for houaing assiatanee under any Federal. State or 
local houaing assistance program and (B) to agree that during the 
term of the mortgage each M the rental unita shall be occupied by. 
or available for occupant by, persona and funilies whose incomea 
do not exceed 100 per centum of the area median income.", 
(e) Section 235(j) of such Act b amended— 

(1) in paragraph (6) by striking out "two^amily" and inserting 
"two- to three-hmily" m lieu thereof; and 

(2) bjr adding at the end thereof the following new paragraph: 
"&) In mauring eligible mortgagea under this subaection, the 

Secretary may not deny insurance on the baaia that a mortgage 
involvea a two- to thiee-family dwelling or ia to be used to fmonce 
subatantial rehabiUtation rather than new conatruction.". 



Sh:. 227. (a) No owner or manager of any federally oaaisted rental 
houaing tat the elderly or handicapped may — 

(1) aa a condition of tenancy or otherwise, prohibit or prevent 
•ny tenant in such housing from owning conunon household 
peti or having commm household pets hving in the dwelling 
s^]^ff > ^^^ f^^^rt iftw^ of such tenant in siKh housing; or 

O iMtrict or diacrijninate wainst any peraon in connection 

with admiiaion to, or continued occupancy at, such houaing br 

isaaiiii of the ownership of such pets mr, or the presence of sucn 

psta In tlia dwelling accommodations m, such peraon. 

(bKl) Not later than the expiration of the twelve-month period 

following the data of the enactment of this Act, the Secretary of 

Housiiig and Urban Developmrait and the Secretaiy of Agriculture 

shall ewih Iwua such regulations aa may be necessary to ensure (A) 

compliance with the proviaiona of subsection (a) with respect to any 



37-922 0-84-4 



yGoot^le 



97 STAT. 1196 PUBUC LAW 98-181— NOV. 30. 1983 

program of Matitanca wfM wd to In ■ubtftion (d) that to **—*■'*■- 
terM by mieh SscrataiT; and (B) attaining th* goal of ptwidiac 
daccnt, taf*, and lanitary houiiiu for the M»r\y or lwndkaii|M£ 
<2) Such ragulationa ■hall estafili^ piidaline* under wfaica As 
owner or manamr of any faderallj' aaaist«d rental houiing fiv iba 



i2uscnoi. 

12USCUTI. 
12 use nOlq. 



T ntanmgtr of any federall)' 
elderly or handicapped (A) may preacribe reaaonable rulaa far iht 
keepiiw of peta bj tananta in auch homing; and (B> shall '-^nfiilt 
with the tenant! of luch housing in prescribing such rulM. Sudi 
nilea majr consider foctorv such as density of tenanta, net fin, ^p« 
of peta, potentiei fuiancial obligsttDns of tenanta, ana standaroi tt 



handicapped, or any local housing authority or other appn^niate 
authority of the community where such housing is located, frcm 
requiring the removal from any Buch housing of any |wt whoaa 
conduct or condition ia duly determined to constitute a nuisance or a 
threat to the health or safety of the other occupants of such bouiiBg 
or of other peiaons in the community where such housing is locatea 

yji V r .1.; .;_ .u- . ■"— lerallj awited t«Mrf 

IS any rental 



(2) is aaaiated under the 
theNar - 



the National Housing Act, or title V of the Houdng Act at IMI, 
■ ' ■ " nated for c 



section 202(dX4) < 
Act of 1959. 



RBNTAL REHABILITATION AND DEVKLOPMINT CI 



"Sic. 17. (a) Phookam AuntourT,— <1) RcHABiLiTA'noN and 
Development GaAifra,— The Secretary is authoriied— 

"(A) to make rental rehabilitation grants to States and units 
of general local government to help support the rriiabilitatioa 
of privately owned real property to be used for primarily Resi- 
dential rental purposes in accordance with subsection ley, and 
"(B) to make develi^ment grants for new conatructioa or 
•ubstsntiol rehabilitation in accordance with subsection (d}. 
"(2) AtmnmiTT to Reserve Houbind AssmANCs.— In eonnsctioo 
with a grant under this section, the Secretary may reserve authmi^ 
to provide housing assistance under section 8(o) to the extant 



"(A) to provide housing sssistance to peisons displsced by 
actiritiea under this section; or 

"(B) to support the grantss's program. 
"(3) Authorization.— To carry out the purposes of this ssctioa 
the Secretary roar utilize not to eiceed S615.0(XI,000, as provided ia 
section 5(c> for fiscsl years 1984 and 1985, of which amount — 



yGoot^le 



PUBUC LAW 98-181— NOV. 30. 1983 97 STAT. 1197 

"UO Bot to MCMd 1160,000,000 shall be available in each tudl 
TMT tbr mital rahabilitatioo, oT which $1,000,000 ^lall b« 
available aadi year for technical pwFttfTi'''^ and 

"S) not to mceed $200,000,000 for fiKal year 19S4. and 
1115,000,000 for fiw«l year 1985. shaU be availdile for ilevelop- 
mmatgrinU. 
"(b) DtsnoBunoN or Rbntal Rbhabiutation Gkant Funim.— (1) ReguiBtion 



FcMUiUiA Allocatiom.— Of the amount available in anj fiical year 
for rehabilitation granta under this section, the Secretai? uiall 
allocate amounta m rehabiUtation grants under iubaertioa (c) to 



citiw having populationa of fifty thouaand or more, urban countiea, 
and Stataa f<w use as provided in subsection (e), on the basis it m 
formula which shall be contained La a regulatiixi propoaed bv the 
Secralaiy not later than dx^ days after the effective date M this 
section. Such regulatiMt •hoU be accmnpanied by the specifie fund 
allocaticm for fbcal year 1984 for individual dtiee, urban counties, 
and States which wmild result from the prt^Msed formula and any 
Miuvtmenta under paragraph (2). "Hie formula contained in the 
regulation shall take into account olgactivaly measurable omidi- 
tiaas, including such foctors as low income renter population, over- 
GTOirding of rental hounng, the extent of physically inadequate 
housing stock, and such other otqectively measurable conditiMis as 
the Secretary deems appropriate to reflect the need for anstance 
umler this section, but excluding data relating to such facton which 
pertain to areas eligible for aaaistance under title V of the Housing 
Act of 1949. 

"(2) AnruBnaNTS. — Before an allocation determined under para- 
graph (I) for any fiscal year is made available for use, the Secretary 
may a4iust the allocation as fotlowK 

' (A) The Secretary is authorized to establish minimum alloca- 
tion amounts for cities and urban counties, repreaenting pro- 
gram levels below which, in the Secretary's detonnination, 
conduct of a rental rehabilitation pragram would not be faoa- 
iUe. lite amount of any allocation which is below this tHltilmum 
shall be added to the afiocation for the State In which the dty or 
county is located and shall be available in accordance with 
•ufaeection (e). 

"(B) Beginning with fiscal years after fiscal year 1984, the 
Secretary la autnorlMd to ac|just the allocation for a city, urban 
county, or State administering a rental rehabilitetion program 
•• provided in subaectiwi (f), by up to 16 per centum above or 
belowtheamount of such allocation, baaed on an annual review 
of performance In carrying out activities under this section in a 
tiindy maimer and in achieving the result that at least 80 per 
centum of the unite rehahiliteted with assistance under this 
sec t io n In all program years have rente which are and remain at 
a levd iriiich WMild be affordoUe by lower income f amiliao. "nw 



n of an adhistment under this subparagrafdt. 1^ Secre- 
jhoU wtabUsh by reoulatit ■■ • - 

■ of this ■ubparagraph. 



iation performance criteria for pur- 



"(3) Rkauacation.— After the allocation of rehabilitetion grant 
amounta, tha Secret a ry is authoriied to reallocate such amounte 
among granteea on Um basis of the Secretary's asweament of the 



yGoot^le 



PUBLIC LAW 98-181— NOV. i 



tration of the Krantaes' rental rehabilitation progranu. 

"(4) RacArruaz. — Any rental rehabilitation grant amounta whk^ 
are not obligatad at the end of any fiacal year ahall be *dded to the 
amount availabls for allocation for such grants for the ■iirfwwiiiil 
fucalyear. 

"(C) G«ANTfl rOR MODCKATt RCHABILfTATION.— <1) PbOOMAM 

DncKiraoN. — A rehabilitation grant may be made under tlua mo- 
tioa on the boaif of aatiafactory information provided in ■ pttignm 
deBCription which shall be submitted by the grantae at aiach tiam 
and in such manner m the Secretary may prescribe and whi^ ahan 

"(A) a deacription of the grantee's propoa e d rental rehabil- 
itation program, which shall consist of the activitiea ttth 
grantee prapoaes to undertake for the fiscal year, including tha 
grantee's anticipat«d schedule in carrying out those activitka, 
or, in case of a State distributing resources as p r o v ided in 
subsection (e), its proposed method of distributing the reaourccs, 
which shall have been made available to the public; 

"(B) a certification that the grantee's program was derelopMl 
after consultation with the public; 

"(O a statement of the procedures end standards which will 
govern aclection of proposala by the grantee, which procedures 
and standards shaA take into account the extent to wfaidi 
the propoaal represents the efficient use of Federal r«aourc«e 
and the extent to which the housing units involved will be 
adequately maintained and operated with rents at the levels 



"(D) an estimate of the effect of the proposed ptDgram on 
neighborhood preservation; 

"(E) evidence demonstrating the financial feasibility of the 
proposed program, including Uie svailability of non-Federal and 
private resources and including evidence that the prtyecta to be 
selected for rehabilitation wOl be located in nei^iboriwods 
where rents are generally affordable to lower income fsmjlins 
trof thi 



and that the character of the neighborhood indicates that au^ 
Its will not materially change over an extended period; and 
'(F) such other information as the Secretaiy shall prescrjbs. 



d under this section shall provide that — 

"(A) grant assistance shall only be used to rehabititate rasl 
property to be used for primarily residential rental purpoOBK 

"(B) grants shall only be used to assist the rehabihtatiroa of 
real property located in neighborhoods where the msdian 
income does not exceed SO per centum of the median income Ibr 

"<0 grant assistance for any structure shall not exceed 60 pw 
centum of the total costs associated with the rehabilitation of 
that structure, as determined by the Secretary, except that 
where the Secretary determines that refinancing costs aitd tha 
miecial nature of the project require a greater amount of anst* 
ance, the grant amount shall be limited to not to exceed 60 per 
centum of the development cost includinjg acquisition; 

"(D) rehabilitation assisted under this section shall only bv 
that which is necessary to corract substandard oonditiorw, to 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

make aseatial impravemeiiU, and toirepair major ayBtemi in 
danger of failure; 

"(E) th« amount of rental rehabilitation aseistance provided 
under thia lection for any itructure shall not exceed (5,000 per 
unit except aa otherwise determined by the Secretary in areas 
of high material and labor ceata where the grantee demon- 
■trates that every appropriate itep haa been taken by the 
grantee to contain the amount of assistance within the limit set 
bj this paragraph and that an exception is neceoaary to conduct 
a rehabilitation program while not exceeding the rehabilitation 
■tandarda of aubparagraph (Dy, 

"(F) a atructure may be aMisted under this section only if the 
r«habilitation of nieh structure will not cauM the involuntary 
ilies by families who are 



"(G) the owner of each aaaiated structure agrees— 

"(i) not to discriminate against projective tenants on the 
basis of their receipt of or eligibility for housing assistance 
under any Federal, State, or local housing assistance pro- 
gram or. except fbr ■ structure for housing for the elderly, 
on Um basis tliat the tenants have a minor child or children 
who will be residing with them; and 

"(ii) not to convert the unite to condominium ownership 
(or in the case of a cooperative, to condominium ownership 
or any form of cooperative ownierahip not eligible for assist- 
ance under this section); 
for at least 10 years beginning on the date on which the units in 
the project are completed; 

"(H) the State or unit of general local government that 
receives the aanstance certifies to the aatisfaction of the Secre- 
tafT that the assiatanoe will be made available in conformity 
with Public Uw 88-352 and Public Law 90-2S4; and 

"V) 100 per centum of the amount of assistance provided 
tinder this sscticm shall be used ^ the grantee for the henefit of 
law«r income families, except that such requirement shall be 
reduced to (i) TO per centum if the grantee certifiea in accord- 
ance with standards prescribed by the Secretary that such 



reduction is necsMary, and that the grantei 
propoasd program wuch complies with such requirez 
eoiuttltation with the public regarding the inability to develop a 



program which complies with such requirement, and (ii) tt 
leas than 60 per centum where the Secretary determines that 
such ftuther reduction it neceesary. 
"(3} SiCXRAMAL RtSPONffBiUTT.— The Secretary shall aaeure 

iMt— 

"(A) an equitable share of the rehabilitation grants under this 
secUOQ is used to assist in the provision of housing for families, 
includioc Isirge families with children; and 

"(B) a priority shall be ^ven to pnyects containing units in 
substandard condition which are occupied iy very Imv-income 



"(1) Tto of Assi8TiU4ca. — Development grant funds may be used 
\^ the grantee to make grants or loans, provide intercat reduction 
paymenta. or furnish other cnnparable assistance to support the 



yGoot^le 



97 STAT. 1200 






PUBUC LAW 98-181— NOV. 30, 1983 
>r eonatruction or aubMantial rehabilitation of real proport y to bt 



primarily for residential rental purpOMa, 

!) Abba EuaiBturv.— Tq be eligible for deve)opiD«nt giwili 

T this aufaa o ction. a project niiut be located in an an* uwt ii 



'■(2) 
under this subaection, a project n 

experiencing a were shorta^ of decent rental houaing opmctinu- 
tiea fbr famUiea and individuala without other reaaonabls ami 
afTordable houaing altemativea in the private market Tt» Secra- 
tary ahall iaaue reflations, conaistent with the precedinf ■nntanra. 
that set forth minunum standard* for determining areM iilifihla far 
aaaistance. Such standards shall be based on lAjectiTeW msaaurahli 
conditions, end shall take into account tbe extent of poverto, At 
extent of occupancy of physicalljr inadequate bounng bjr I 
income families, the extent of houaing overc 
lower income faroiliea, the level 

vacancies, the extent of the lagb>_ 

production of rental housing, and other otqectiTetj msMurahle ol_ 
ditions specified by the Secretary conaistent with tha first tifiVfiifft 



ies, the extent of houaing overcrowdiiw e^ariMtoed by 
e families, the level and duration of rental *"«irrinf 
e extent of the lag be t we en the estimated Dead Ibr ana 



this section and shall promptly transmit to the Confress auA 
proposed r^ulations accompanied by a list of those aiaas whid 
meet the mmimum etandarda contained in such regulations. Anr 
unit of government located in an area which meeta such '«i"inHint 
standards is eligible to submit an aiiplication for a rental hmMifig 
development grant under this lection. Tbe Secretary tnaj also 
consider an application for a project to be located in an area which 
is not eligible under such atandardt where the Secretary iliil<ii Hihias 
that a project involving assistance for other than moderate rahahib- 
tation is necessary in order to meet special housing n e ed s or la 
advance a particular neighborhood preservation purpoae. 

"(3) Ai-pucATiON.—A development grant may oe made under this 
section oa the basis of information provided in an applicatioti wlikfe 
shall be submitted by the grantee at such time and in such niannsr 
as the Secretary may prescribe. In addition to information relati^ 
to the selection criteria set forth in paragraph (5). the andicatiaa 



,-_,.__-a to undertake for the fiscal year, including a 

tion of the grantee's anticipated schedule in carrying out Ihnsn 

activities; 

"(B) a certiTicatton that the grantee's program waa davelopad 
after consultation with the public; 

"(Q a statement of the procedures and standards whi^ will 
govern selection of proposals by the grantee, which procedures 
and standards shall take into account the extent to which tha 
proposal represents the eflident use of Federal reeourcea and 
the extent to which the housiiw units involved will ba ade- 
quately maintained and operated with rents maintained at th* 
levels proposed; 

'""' " """ e of the effect of the j: 



T information as the Secretary shall preaeribe. 
"(4) Program Rbquirxments.— A rental development proeram 
assisted under this section shall provide that — 

"allbeuaed 



'■(AJffranl 
le used for I 



residential rental purpoaes only; 



« used to develop real pr oper ty to 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 



"(B) grant SMutance for anj atructure Bhall not exceed 50 per 
centum of the total coata aModated with the nhahilitatioo or 
development id that ■tnicture, aa determined l^ the Secretai7, 
«xc«pt that where the Secretary detonninea that re&nancin( 
ooeta and the ipecial natun of the prefect require a grttlMt 
■mount of Meiitanoe, the grant amount ihall be limited to not 
to exceed 50 per centum of the development coet including 
•oquiaitioB; 

ffZ a structure may be aaaiatad under thia lection only if the 
development of such structure wiU not cause the involuntary 
diaplaoement of very low-income familiee by familiee who are 



"(i) not to discriminate against prospective i 
baais vX their receipt of or eligibiuty for hout ^ 
under any Federal, State, or local houvng anistance pro- 
gram ur, except for a itructure for houaing for the elderly, 
on the basis that the tenants have a minor child or childrm 
who will be residing with them; and 

"(u) not to convert the uniti to condominiuni ownership 
(or in the case d a cooperative, to condominium ownership 
or any form of cooperative vmierahip not eligible for assist' 
~ ~ « under tliia section); 
_ the 2(^year perio * ' 
units in the project are available for oocupency; 

"(E) the owner of each assisted structure agree* that, during 
the 2l>Tear period beginning on the date on which 50 per 
centum of the units in the structure are occupied or completed, 
at least 20 per centum of the units the constniction or aufaetan- 
tial f«lkabilitation of which is provided fbr under tlie application 
■hall be occupied, or available for occupancy by, persons and 
families whose incomes do not exceed 80 per centum of the area 
median income; 
"(F) the structure— 

"(i) will have a value after rehabilitation or ctmstruction 
that is not more than the amount of a mortgage on the 
structure that could be insured under section 207 of the 
National Housing Act; and I2U8C1713. 

"W is secured by a mortgage which beaia a rate of 

interest and contains such other terms and conditions ai 

the Secrotary detenninea are reasonable; 

"(G) the grantee must commence construction ur substantial 

rehabilitation activities not later than 24 monthi after notice of 



"(H) the State or unit of general kcal government that 
receives the assistance certifies to the satisfaction of the Secre- 
tary that the aMiatance will be made available in conformity 
wiOi PubUe Uw 8B-SE2 and Public I^w 90-284. «2 use 2aaaB 

"(6) PaoracT SiLacTiON.— In selecting project* to receive develop- ""*•; 82 Sut 73 
lent grant*, the Secretary ahall make such aelection on the basis of 



yGoot^le 



97 STAT, 1202 PUBLIC LAW 98-181— NOV, 30, 1983 

"(B) of non-Federal public and privat« financial or other 
eontributiona that reduce the amount of aaaifltance ttmetmmtf 
under thii lection; 

"(C) to which the project or project! contributa to neighbor- 
hood develiqnnent and mitigate diiplacement; 

"(D) to which the applicant haa eatabliahed « latia&Ktocy 
record of performance in meeting aasiated hounng needi ukd 
haa the capadty to undertake the prap«m in a timelji mauMi; 

"(E) to which the awistonoe requeated will provide the maxi- 
mum number of units for the least coat to the Federal Govern- 
ment, taking into consideration the extent to which assjatanco 
provided wm be recaptured and cost differences amooi dilto- 
ent areas, among financing altemativea, snd among the typas of 
projects and tenants being served; 

"(F) to which the grantee will establish a mechanism to 
assure the maintenance of affordable rentals for lower income 
families; 

"(G) to which the applicant has demonstrated the financial 
feasibility of the proposed program, including the availabili^ ot 
non-Federal and private resources; and 

"(H) to which an equitable share of the development grant 

funds under this section will be used to assist in the provision of 

housing for families, including large families with children. 

"(6) Paioarrm.— In selecting projects for grants under this suboee- 

tion, the Secretary shall give s priority to proposals involnni 

"(A) which exceed the minimum requirements of paragraph 
(*XE); and 

"(B) in areas when the waiting lists for housing sssistanoa 
are relatively long and where families holding certifkatM 
42 use usrr under section 8 require sn excessive length of time to find 

housing. 
"(7) BNroscBMKNT OF Phograh RcquiRCMCNTV,— <A) The granlae 
shall take appropriate legal action to enforce compliance with the 
requirements of this subsection by the owner of any assisted prop- 
erty or his or her successors in interest during the 20-year period 
banning on the dale on which 50 per centum of the units ara 
VioLation, occupied or are completed. For any violation of such sgreements, the 

payment, owner or his or her successors in interest shall make a payment to 

the grantee of an amount that equals the total amount <u assist anca 
provided under this title with respect to such project, plus interest 
thereon (without compounding), for each year and any fraction 
thereof that the assistance was outstanding, at a rate determined far 
the Secretarv taking into account the average yield on outatandinc 
** marketable long-term obligations of the United Stales during the 

month preceding the date on which the assistance was made avidl- 
able. The amount of such assistance (and accrued interest) which is 
required to be r^taid shall be reduced l>y 10 per centum for each ftill 
year in excess of 10 years which intervened between the commanca- 
ment of the period and the violstion. Any amounts recovered by the 
grantee shall be used to furnish assistance under this section. 
"(B) Notwithstanding any other provision of law. any »"'f*afn^ 
provided under this subsection shall constitute a debt, which is 
payable in the case of any failure to carry out the agreements, and 



yGoot^le 



PUBLIC LAW 98-181— NOV. 30, 1983 97 STAT. 1203 

*WKAJ Rent Pkovuionb. — Rents charged for unita available for 
occupancy br lower income familiee in any project assisted under 
tbii aubwctioa (hall be approved by the grantee. In approving such 
rants, the gTaot«e ihall provide that the renta of such unita are not 
more than 30 per centum of the adjusted income of a family whose 
inoMne equab SO per centum of the median income for the area, as 
datarmined by tiie Secretat; with a^juatmenta for smaller and 
larger families. Not less than 30 days prior written ttotice of any Increue 
inoneaaa in ranta shall be provided to bucb tenants. noiificaixHi. 

"(B) Any schedule of rants submitted by an owner to the grantee 
for approval shall be dawned to be approved unless the grantee 
tnfonm the ownar, within 60 days aner receiving such a:hedule, 
that such idtBdule is diaapprovad. 

"(91 Gbant Amount.— The amount of a devetopment grant pro- 
vided under this subaection shall not be more than that amount 
which will provide decent rental or cooperative housing of modest 
design which is affordable for familiee and individuals witiiout other 
faasooable and affordable housing alternatives in the privata 
market, including an amount necessary to achieve compliance with 
raph(8XA). 



"(a) Statx Pboobam .— (1) Except as provided in paragraph (2), the 
State shall administer resources made available under subsection 
(bX2) for any fiscal year. These resources shall only be used to carry 
out activities under tiiis section in cities with populations of lev 
than flfty thousand and in urban counties and cities whoae allocft- 
tions are less than the minimum allocation amount established 
under subsection (b)(2), but may not be used in areas which are 
eligible for aMiitance under Utle V of the Housing Act of 1949. The 
Sts^ mar use all or part of theae resources (A) to carry out its own 
rental ruiabilitation prcgram, or (B) to distribute them to units of 
general local government. A city with a population over fifty thou- 
sand may, with the agreement of the State government, elect to 
contract with the State to administer the grant program under this 
section in any fiscal year. 

"(2) Statca may elect not to administer rteources made available 
under subsection (bX2) of this section. lUs election shall be made in 
such manner and before such time as the Secretary may prescribe. 
"nm Secretary shall administer the resources available to any State 
exarcidng audi an election in accordance with r^ulations and 
_ — i..-.^ preacribed by Om Secretary, including the administra- 



tiaa of nant programs of cities with populations over (Ufy thousand 
which elect not to administer their own program. Such regulations 
shall, to the maximum extent practicable, he comparable to those 
for cities and uihan counties receiving resources under Bubsectim 



shall, to the maximum extent practicable, he comparable to those 

fort ' ■■ ^ ■■ *. . .__^,__ 

(b). 

"(8) A State may apply for and receive, on behalf of a unit of local 
gavenunent located in that State and with the concurrence of that 
unit of general local government, a rental development grant to he 
I land in accardance with the provisions of subsection (d). 

"(4) In any case in which the State is a grantee under any 
provision of this section, the Secretary shall require that the State 
take such actitma as may be appropriate to assure compliance with 
tba program requirements, owner agreementa, and other provisions 
of this section. 

"(f) Amjcaaiurr or Rm^vmEHttm oa AoaEXHEins.— Require- 
menla im p osed by or agreements made with States and units of 
genml local government regarding rents in structurea assisted 



yGoot^le 



97 STAT. 1204 PUBLIC LAW 98-181— NOV. 30, 1983 

under this •ection (including requirements relating to th* ranti 
which may be charged after rehabilitation) ihall not Bpplj to ■ 
structure aniited under this tection unlew <1) such roquireoHats 
are impoaed or agreements are entered into puiauant to a State law 
or local ordinance of general applicability which was enactad and in 
effect in that jurisdiction prior to the dat« of anactntent of this 
section, and (2) such requirements or a^reementd would apply gaxr- 
ally to structurea not aasiatad under this aaction. 



*2 use H37i. 



related naeistance as the Secretary determines to be a| 

"(h) ADMiNmxATTVi EkpcNSis. — Grantees receiving aaHataost 
under this section shall not deduct therefrom any amounts to oowr 
administrative expensea incurred by them in carrying out tlisc 
renxHiaibilities under this section. 

(i) PUSKRVATION, EnVIBONMKNTAL PoUCT, AND LaBOK StA»> 

AMne.'-il) The Secretary shall establish procedurea whidi aupiNKl 
national historic preservation objectives and which assuro that, t 
any retiabilitation or development proposed to be assisted iinifcir Ob 
section would affect property which is included on the NaUoMl 
Register of Historic Placta or which is eligible for inclusion on ths 
National Register of Historic Places, such activity ahoD not be 
undertaken unless (A) it will reasonably meet the standanla issoad 
by the SecretaiT of the Interior and the appropriate Slate hktork 
preservation oflicer is afforded the opportunity to commMit on tfai 
specific rehabilitation or development program, or <B) the Adviaarr 
Council on Historic Preservation is afforded an opptntunity to can- 
ment on cases for which the grantee of assistanc*, in consuItatiMi 
with the State historic preservation ofTicer, determines that the 
proposed activity cannot reasonably meet such standards or would 
adveiady aTTect historic property as defined therein. 

"(2) The Secretary's award and grantee's use of reeourcea mads 
available under this secUon shall be subject to section 104(0 of tl« 
Housing and Community Development Act of 1974. 

"(3) A structure assisted under this section shall bs treated aa a 
prttjeet subject to a mortgage insured under section !90 at the 
National Housing Act for the purpose of section 212 of audi Act 

"(j) FiNANCtNO.-^ubJect to terms and conditions that are pte- 
scrttiBd by the Secretary and are consistent with the purpose and 
other provisions of this section, any obligation issued hj 
local housing agency for the purpose of financing the deve' 
a project or projects assisted under this section is hereby i 
obligation that meets the requirements of, and has (' 
(including the benefit of interest earned with respect t< .._ .. 
tion being exempt from Federal taxation) associated with, an el 
tion described in section 11(b). 

"(k) Oar u i m ont. — For the purpose of this section — 

"(1) the term 'rehabilitation grant' means a grant to th 
moderate rehabflitation; 

1 'development grant' means a grant to tit 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

iriiich liM * nsale rtructure which enablei the cooperative to 
imuntain aflbrdability (or lower income families; and 
"(5) the term 'grantee' meaiu— 

"M any ci^ or urban county receiving reaourcee undo" 
tiusMCtion; 
"(B) may State administering a rental rehabilitation or 

1 — 1 . . _ y^^^ jj, Bubaection (f); and 

... _ il government which receives 

aaiistance from the Secretary as provided in suhaection 
(fX2). 
Hie Secretary shall encourage eooperetion by units of ftatral local 
government m the administration of grwitB under this section by 
permitting oonaortia of geographically proiimBta units of generd 
local gmemnient to apply for anistanca on behalf of their members, 
ioclucung eatabliahment of eligibility imder subsection (til for consor- 
tia whose combined populations exceed fifty thousand end which 
can otherwiae meet the requirements of such subaaction. Any 
amounts made available to such a consortium shall be deducted 
fh«i the allocation to the State in whidi the units of general local 
govnnment ore located. 

"(I) Rivmr ANn Aimtr— The Secretary shall, at least on an 
annimt basis, moke such reviews and audits as may be nscesaary or 
appropriate to detennine— 

"(1) when the grantee is a unit of general local Eoyemment 
or a State carrving out its own program as provided in sufaaec- 
tion (fXl), whetner the grantee has carried out its activitiea in a 
tinely manner and in accordance with the requirements of this 
■actio n , and has a continuing capacity to carry out those activi- 
ties in a timely manner; and 

"O where the grantee is a State distributing resources made 
■vailabla under this section to units of genera] local government 
as prorided in subsection (eK2), iriwther the State (A) has 
disteibuted such resources in a timely mannar and in accord- 
ance with the requirements of this section, and (B) has made 
Bud) re v iews and audits of the units of general local govern- 
ment ss may be necessary mr appropriate to determine whether 
they have satisfied the performance criteria described in para- 



n additior 



(1>. 



[ditini to the a4)UBtmenta baaed on peiflannanee authorixed by 
" 1 (bN2), the Secretary may ai^ust, reduce, or withdraw 
Sb available to States and units of general local govsm- 
t assistance ondar this ssction, or take other action as 
appro^iato in acctwdance with the tindinn of theae reviews and 
audita except that resources already expended on eligible actiritiea 
riiall not be rvcaptured or deducted from future reeources made 
available to the grantee. Any amounts which become available as a 
rasnlt of actions under this paragraph shall be reallocated in the 
jear in iriiidi they become availanle to such grantee or franteea as 
the SeCTBtary may deb 
"(m) P^woxHANCB : 

198S and each fiscal year tl „. 

the Secretary a performance report concerning the activities carried 

out pursuant to this asction, together with an mans rut by the 

grantee of the relstionship of theae activitiee to the objectives M this 
■ection. Soch report shall contain an analysia of the program's cost 
effectiveneas, the ^pe and income level* of tananta who benefit from 
the rehabilitatian program, any tenant displacement reeulUitg from 



yGoot^le 



PUBLIC LAW 98-181— NOV. 30, 1988 



the progTam, and any other information the Sacratarj tamr raqiiin. 
To facilitate this reporting requirement, each gc«Dt«e ■hall raqoin 
owner* of property rehabilitated under this lectioa to pravide vert- 



e data and other pertinent tenant demograpUc infbrfpa- 
uon 33 prescrib«d by the Secretan' (to include boiuMioU iua uuf 
race) or to otherwiae arranm for the collection of tuch infomwtki 
on an annual baaia. The Sacretar? ahall atipulat* tha fbrmat idi 
such data collection to eseure that nich information cut ba agpe 
gat«d at the national level to allow coogTewionaJ orend^t. 

"(n) RapORT TO Concriss.— Prior to the beginning M Sk*! ^m 
1985 and each fucal year thereafter, the Secretat; ihall pnmdtl 
report to the Con^resa aa to the ovenll progKW of grantoM k 
meeting the objectives of thia aection. Such report ahall induda ■ 
analyiia of program coata. aervicca delivered, oenefieiariM, and tb 
extent to whicn lower income tenant* have been displ«cad •• I 
result of rehabilitation assisted under this aection,". 



DTVKLOMtnn ACT OP 19T4 



BCOmUVNTTY 



Stc. 302. (a) Section 105(a) of the Housing and CMumiini^ Daivil- 
opment Art of 197* is amended— 

(1) by striking out "and" at the end of clause (16); 

(2) by atriking out the period at the end of claua* (IT) and 
inserting in lieu thereof ": and"; and 

(3) by adding at the end thereof the following: 

"(16) the rehabilitation or development of hounng aaairtad 
under section IT of the United States Housing Act «f IMT.'. 
(b) Section 107(d) of auch Act ia amended— 

(1) by striking out "unless the apjilicant" in para^aph (1) and 



(c) Section 817 of such Act ia amended — 

(1) by atriking out "and" after "1966,"; and 

(2) tw inserting after "and 1970" the following: ", m 
17 of the United Statea Housing Act of 1937". 



HINO IkMINOUKtm Tl 



■ NATIONAL KOUBDro ACT 



iMurance. Sic. 303. (a) Section 244 of the National Housing Act is ■ 

12 use ni5i-9. Qy piMing at the end thereof the following: 

"(h) Notwithstanding any other provision of this taction, in Ika 

Poll, p. IZOT. case of a mortgage insured under section 223(f) secured by puitsi^ 

which ia to be rehabilitated or developed under section IT of Ika 

Anil, p. 119S. United States Housing Art of 1937, auch coinsurance maj infliiii 

provisions that — 

"(1} insurance benefits shall equal the aum of (A) 90 pOT 
centum of the mortgage on the date of institution of foracloMBa 
proceedings (or on the date of acquisition of the propartjr othsr- 
wise after default), and <B) 90 per centum of intereM arravia cm 
the date benefits are paid; 

"(2) the mortgagee shall remit to the Secretary, for cradit tu 
the General Insurance Fund, 90 per centum of any p 
the property, including sale proceeds, net of the n 



yGoot^le 



PUBUC LAW 98-181— NOV. 30. 1983 

actual and reawnable ooats Tclatad to the property and the 
enforcwmeat of aacurity; 

"(31 pajToent of such benefits shall be made in caah unless the 
mortgagee tubinita a written request for debenture pnyment; 

"(4) the underwriter of coinsurance may reinsure 10 par 
centum of the mortgage amount with a private mortgage insur- 
ance company or with a State mortgage iniuranoe agency. 
No commitment for insurance pursuant to tUa subaection may be 
taaued on or after Octeber 1. 1985.". 

da) Section 223(f) of such Act ii amended by adding at the end 
thnneof tba followiiw: 

"W In the caae of any purchase or reflnancitig under this subeee- 
tion ioToIving property to be rehabilitated or developed under aec- 
tion IT of the United States Housing Act of 1937. the Secretary 

"(A) include rehabilitation or develcnproent ooata of not to 
•xcead $20,000 per unit, except that the Secretary may increaae 
Buch amount t^ not to eseeed 25 per centum for opecific propei^ 
tiea where cost levels so require; 

"(B) permit subordinated liens securing up to the full amount 
of mortgaga financing provided by State or local BDvenunents or 
agencies thereof ; and 

"(C) pay cuch benefits in cash unless the mortgagee submits a 
written requeat for debenture payment". 

TTTLB IV— PROGRAM AMENDMENTS AND EXTENSIONS 



Subpart 1 — General Authoritiea and Requirements 

H or MORTGAOI INSUKANCX PROGRAMS 



^ ^ ,— ..iten.745. 

30, 1983" and inserting in lieu thereof "Septuuber 30, 1985". i^ "^ I7i5h. 

(c) SactioB 221(0 of audi Act is amended by striking out "Novem- '*"'«& ''i^ 
bw 80, WSar in the fifth sentence and inaerting in lieu thereof '^ ^^ "1^' 
"8M>t«mb«rS0,198S". 

(Ml) Section 236(m) of such Act is amended by striking out Antt. a. 746. 
'74ov«uber SO, 1983" and inaerting in lieu thereof ''September 30, 13 USC 171S>. 
198S". 

(2) SactioD 236((tXl) of such Act is amended by striking out "No- 
VM^er 80, 19SS" in the lost sentence and inserting in lieu thereof 

Ante. p. US. 
in the first sentence 12 "* 1715.-9 
), 1985": 
(2) by striking out "December 1, 1983" in the second sentence 
and inmting in lieu theivof "October 1, 1985"; and 
<3Xby striUng out the last two sentanoea. 



yGoot^le 



Aalt. p 145 

12 DSC lT4Bh-l. 

AnU. p. 745 

12 DSC lT4eh-2. 

Aaie. p. 74S. 
12 use n49bb. 

Anit. p 745 

12 use ]749aB«. 

12 use l735f-9. 



12 use 1709-1 
12 use 1703 



PUBUC LAW 98-181— NOV. 30, 1983 

(f) Section 245(a) of such Act ii amended by Mriking out "Nowan- 
ber 30, 1983" in the last sentence and inaertiiig in liau themf 
"September 30, 1985". 

(g) Section 809(f) of such Act i» amended by Krikin( out "Novtn- 
ber 30, 1983" in the last sentence and inaerting in Iwu tfanaef 
"September 30, 1985". 

Oi) Section 810(k) of such Act is amended by atriking out "Novoa- 
ber 30, 1983" in the laat sentence and inserting in lieu tbarssf 
"September 30, 1985". 

(i) Section 1002(a) of such Act is amended by strikins out "No*«» 
ber 30, 1983" in the laat sentence and inserting in lieu thmnd 
"September 30, 1985". 

(j) Section 1101(a)of such Act is amended by striking out 'TlavMi- 
ber 30, 1983" in the last sentence and insertii^ in. lieu tbssMf 
"September 30, 19S5". 



AMOUNT TO ■■ INBUKCD UNDBB T^E NATTONAL HOUSINO 

Sic. 402. Section 531 of the National Housing Act is 
read as follom: 

"amount of INSuaiO MOtTGAOn 

"Stc. 531. Notwithstanding any other provision of law and L ,__. 

only to the absence of qualined requeeta for inauranca, to tlw 
autnoritv provided in title II, and to any funding «— =--^— 
approved in appropriation Acta, the Secretary shall enter inti 
mitments during each of the fiscal years IvM and 1985 to i 

lortgagea under title II with an aggregate principal 

60,900,000 



S60,9t 



Sbc. 404. (a) The Act entitled "An Act to amend chapt«r ST of tiUs 
38 erf the Unit«d States (^ode with respect to the veterans' hosM loM 
program, to amend the National Houaing Act with napeet to inter- 



1,000,000.". 



ELIMINATION OF REQUntEMINT T1 



May?. 1 
and 4. 



8 (Pub. L 90-30 



(bXl) Section 2(bX5) of the National Housing Act ii i 
r*ad as follows: 

"(5) No insurance shall be granted under this sectioD to any waA 

financial institution with respect U> any obligatio — " 

such loan, advance of credit, or purchase by it unless i 
has such maturity, bears such insurance premium 

contains such other terms, conditions, and restrictions „ 

taiy shall prescribe, in order to make credit availabla for 
purpose of this title. Any such obligation with nmpttt to wfaid 
e is granted under this section shall bear intoraat at and 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 97 STAT. 1209 

IV be agned upMi by the borrower and the flnancial 



mortgagor and the mortgagee.". 
[3J Section 2030cX3XB) of iilch Ac 
"(B) bear interest at inch ret« ai 



roortgacorai 
) The lirat I 



nrat sentence of tl 
I) 207(cX3) of Buch Act ii 
mortgage ahall provide for complete amortization b 
■nenta within nich term aa the Secretary ahall preat 
bear interest at auch rate m may be agreed upon by the mortgagor 
and the mortgagee.". 

(5) The first sentence of aectiOQ 213(d) of such Act ia amended to IZ USC ni5e 
read as foUowa: "Any mortgage insured under thia section shall 
provide for complete amorUxation by periodic payments within such 
term as the Secretary ma^ prescribe but not to exceed 40 years from 
the beginning of amortization of the mortgage, and shall bear 
interest at such rate as may be agreed upon by the mortgagor and 
the mortgagee.". 

<6) The second sentence of section 220(dX4) of such Act is amended IZ USC 171Gk. 
to r«ad as followi: "The mortgage shall bear interest at such rate aa 
may be agreed upon by the mortgagor and the mortgagee and 
contain such terms and provisions with respect to the ap|»ication of 
the mortgager's periodic payment to amortization of the principal of 
the mortgage, insurance, repairs, alterations, payment of taxes, 
default reserves, delinquency charges, forecloeure proceedings, 
anticipation of maturity, additional and secondary liens, and other 
■natters as the Secretary may in the Secretary's discretion 
preecribe.". 

(7) Section 220(hX2)(iii) of such Act is amended to read as follows: 

"(iii) bear interest at such rate as may be agreed upon by the 
mortgagor and the mortgagee;". 

(8) Section 221<dX5) of such Act U amended by striking out "(exclu- 12 USC ITIU. 
sjve" and all that fbllowa through "mortage market" and inserting 

in lieu thereof the fbllowing: "at such ratios may be agreed upon by 
the mortgager and the mortgagee". 

(9) Section 231(cX6) of such Act is amended to read as follows: 12 usc ITiS*. 

"(6) bear interest at such rate as may be agreed upon by the 
m or t g ago r and the mortgagee; and". 

(10) Section 232(dXSXB) of such Act is amended to read aa follows: 12 USC lT15w. 
"(B) bear interest at such rate as may be agreed upon by the 

mortgMor and the mortgagee.". 

(11) The first sentence of section 234(f) of such Act is amended to 12 USC ITiSy 
read aa follows: "Any blanket mortgage insured under subeectjon (d) 

shall provide for complete amortization by periodic payments within 
snch terms as the Sscretarr may preanibe but not to exceed 40 
ITS from the beginning of amortization of the mortgage, and shall 
\r interest at such rate as may be agreed upon by the mortgagor 






(A) bj striiting out "and" a 
"' g out the perioc 

I lieu thereof "; 1 . _ , 

I the following new subparagraph i 



12USCni5E. 



yGoot^le 



12 use m5i-5. 



12 use ITlSi-e. 



PUBLIC LAW 98-181-NOV. SO, 1983 



any time u the Sacretary find* neccaw; to m«et Um iiiiiiUMi 
market, taking into coiuideration tha jialdi on mortcagaa fa 
the phmarv and aecondan mM-kets.". 
(13) Section iWcM) at aucli Act ia amended to re*d am feUom 
"(4) bear intetaat at mch rate aa mv he agned tipon by the 
mortgagor and the mortgagee;". 
(l«k Section 241(bX3) of aueh Act ia amended to ivmI aa fcllaaK 
"(3) bear interact at auch rate aa may be agiaad upon by tka 
mortgagor and the mortgagee;". 

(15) Section 242(dX3XB> of auch Act ia amended to read aa fblkmc 
"(B) bear intetaat at auch rat« a« may be agraed npoti by tbt 

mortgagor and the mortgane.". 

(16) Section lOOaidNZ) of tuch Act U emended to r«Ml as feDmn: 
"(2) bear interest at auch rate as may be agreed upon hf tta 

mortgagor and the mortgagee, except that the Seci«twr]r aaj 
agree to ■ reaaonaUe extenaion of the term of a mortgage, tfaa 
maturity of which ia limited by this paragraph to not mar* than 
10 yeaiB, if the Secretary determines that unuaual o~ ~ * 
aeen drcumatances make auch c ' 

undue hardship to the mortgager:". 

nANtMBM 



(1) in the (irat aentence. by i 
tured homes," after "houaing"; 

(2) by adding the following new sentence at the end tbafaoC 
"Following the effective date of thia aentence, the eae r p pw- 
formance requirements developed and eatobliahed tj tha Saa» 
tary under thia subaection for newly cooaUvtMi iiwiVaiHal 
houaing, other than manufacttired homea, shall be at laaat m 
effective in performance as the energy perCDrmanc* nqiiii» 
ments incorporated in the minimum promrty atandrda Ibit 
were in effect under this subaection on September 80; IMS."; 

(3) by inserting "(a)" after the section deaignation and addiDg 
at the end thereof the fallowing new subsection: 

"(b) The Secretary may require that each property, othar than a 
manufactured home, autgect to a mortgaga insured undsr thia Act 
shall, with respect to health and safMv, comply with ooa of tlw 
nationally recosniwd model building codes, or with a Stat* or loeid 
building code baaed oa one of the nationally rscagniaed BOdil 
building codes or their equivalent The Secretary ahall be ranoB» 
ble for determining the comparability of the State and local coasi ta 
such model codes and for selecting for compliance purpoasa as 
appropriate nationally recogniied model building cods where ■> 
such model code has been duly adopted or where the Hacrataiy 
determines the adopted code is not comparable,", 

(b) The section heading of section 526 of such Act is amaudad la 
read as fbllowa: "MmiiiUM Piopihtt Standakos", 



Sk. 406, Section 530 of the National Housing Act is • 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 97 STAT. 121; 

(1) bjr itriking out "promptly upon their receipt from the 
borrower" and inaerting in lieu thereof the following: (I) in the 
ease of loam or mortgages respecting one- to four-family re^ 
dencee, promptly upon tfieir receipt from the borrower, and (2) 
in any other case, promptly when due to the Secretaty"; 

(2) by inserting "or due date, as appropriate." after "such 
receipt '; and 

(3) by inserting "or afl«r the due date, as appropriate," before 
"and ending". 

MOSTGAOB mSUKANCB FOK AMEBICAM SAMOA 

Sbc. 407. (a) Section 9 of the National Housing Act is amended by 12USC1706d. 
■naerting "American Samoa," after "the Trust Territory of the 
Pacific Islands,". 

(b) Section 201(d> of such Act is amended by inserting "American iz USC no7. 
Samoa," after "the Trust Territory of the Pacific Islands,". 

(c) Section 207(aX7) of such Act is amended by inserting "Ameri- 1^ USC 1713 
can Samoa," after "the Trust Territory ot the Pacific Islands,". 

ASnCNMKNT or BICTION IIl(gK41 HOBTOAOn TO OOVKRNHXNT 



Sk. 40S. Section 221(gX4} of the National Housing Act U amended 13 USC 17151. 
by Inserting "(A)" after the paragraph designation and by adding 
the following new subparagraph at the end thereof: 

"(B) In processing a claim for insurance benefits under this para- 
graph, the Secretary may direct the mtwtgagee to assign, transfer, 
and deliver the ori^nal credit instrument and the mortgage secur- 
ing it directly to the Government National Mortgage Association in 
lieu of assigning, transferring, and delivering the credit instrument 
and the mortgage to the Senetary. Upon the assignment, transfer, Contnct 
and delivery of the credit instrument and the mortgage to the lermiMii™. 
Association, the mortgage insurance contract shall terminate and 
the mortgagee shall receive insurance beneflts as provided in sub- 
paragraph (A), "nie Association is authorised to accept such loan 
documents in its own name and to hold, service, and sell such loans 
as agent for the Secretary. The mortgagor's obligation to pay a 
service charge in lieu of a mortgage insurance premium shall 
cmtinue as long ss the mortgage is held by the Association or by the 
Secretary. The Secretary shall have ths same authority with respect 
ta mortgagee assigned to the Secretary or the Association under this 
subparagraph as provided by section 223(c)". 12 USC 1715n 



Sue. 409. The first sentence of section 221(gX4XA) of the National 
Housing Act, as redesignated by section 408 of this Act, is amended 
t^ inserting after "this section" the following: "pursuant to a 
commitment to insure entered into before the elective date of this 



37-922 O - 84 - 



yGoot^le 



97 STAT. 1212 PUBUC LAW 98-181— NOV. 80. 1983 

Subpert 2— SinKte-Funily Mwtgafs IntunnM hogram 

TiTU I tmuKANca torn ^uanNo MAKurACimsD Moma 

IZUSCnoa. Sk. lis. Section 2(a) of the NationAl Houaing Act k uwd^^ tv 

inserting tlw following before the l«st undeaigBatad p«ngnpa 
thereof: 

'"Hie insurance authority provided under thia sactioo amj ht 
made available with raepect to an; existing i«»tinf»ff « n i'ii<l boms 
that has not been injured under this sectioa if audi bd^M WM 
constructed in accordance with the standards iMUsd andir lb* 
National Manufactured Housing Construction and Sale^ Standtt4i 
42 use 5401 Act of 1974 end it meet* standards aimilar to the min.M^iin p nj|MiU 

121330 I7(n Standards applicable to existing homes insured under Mia IL . 

DfCRKASKD TTTLB I LOAN LOCrn VOS HANUTACnnXD WWn AND LOB 

1ZUSC1T03 Sac. 416. (a) Section 2(bKl) of the National Hoa«b« Act is 

amended — 

(1) in subparagranh (Q, by striking out "$22,600" aDd sB tiMt 
follows through modules}" and inserting in lien tkasaef 
"»40,500"; 

(2) in subparagraph (D), by striking out "S3G,000" and aU tiMt 
fbllaws through modules)" and inserting in lien thstarf 
"$54,000"; and 

(3) in subparagraph (E), by striking out "such an ; 
may be neceaaarr, but not eiceeding $12,500," and ii 
lieu thereof "$13,500". 

(b) Section 2(bX2) of such Act is amended by striking out tha lart 



n dollar amounts specified ii 

(bXlNE) mav be increased on an area^byntrea baaia to tha aslant dw 
Secretary deenu neceasaiy, but not to eiceed the nerrantata bf 
which the maxim nm mortgage amount of a one-fami^ raaidsnea ■ 
the area is increased by the Secretary under sectioo SOSCbXS-'- 

■BINANCtNO MMtUTACtUXn HOIOS UNDn TRLK I 

Sk. 417. Section 2aiX6) of the National Housing Act ia a: 
bj adding at the end thereof the following n 

"(C) The owner-occupant of a manufactured home or a booh ana 
lot which was purchased without aasistance under this f^ i rm bst 
which otiierwise meets the requirements of this seetiMi maj rrft 
nance ludi home or home and lot under this section if tha home was 
constructed in accordance with standards established under MCtka 
604 of the National Manufacttired Housing Construction and SafMj 
Standards Act of 1974.", 



COOmATIVC HOUaiNO 

Sk. 419. Section 203(n) of the National Housing Act is 



yGoot^le 



PUBUC LAW 98-181-NOV. 30. 1983 



Ul in paragraph (1), by inserting the rollowing before the 
period at Uie end of the second sentence: "or the construction of 
which was completed more than a year prior to the application 
for the mortgage insurance" i and 

(2) by striking out "nonprofit" in paragraph (2XA). 



Sbc. 420. (a) The first sentence of section 234(c) of the National 
Housing Act is amended by striking out "(2)" and all that follows 
through the period at the end thereof and inserting in lieu Uiereof 
the following: "and (2) at least SO percent of the u' ''~ 
covered by mortgages insured under this title ar 
mortgagors or comortgagora.". 

(b) The third sentence of section 234(c) of such Act is amended by 
striking out "(A)" and all that follows through "(25,000" the second 
place it appears and inserting in lieu thereof the following: "(A) 



in the proje< 
supied by th 



nofa 



in the area pursuant U 

(c) Section 234 of such Act is amended by adding at the end 
thereof the following: 

"(k) With respect to a unit in any project which was converted 
from rental housing, no insurance mav be provided under this 
section unless (1) the conversion occurred more than one year prior 
to the application for insurance, (2) the mortgagor or comortgagor 
was a tenant of that rental housing, or (3) Uie conversion of Uie 
property is sponsored by a bona fide tenants oreanization represent- 
ing a m^iohty of the households in the project.' . 

BINCLS-PAMILV MOBTGAOt INSuaANCE ON HAWAIIAN HOMB LANDS 



MORTDAOI INSUAANCE O. 

"Sbc. 247. (a) The Secretary, subject to such conditions as the 
Secretary may prescribe, may insure under any provision of this 
title that authorizes such insurance, a mortgage covering a property 
upon which there is located a one- to four-family residence, without 
regard to any limitation in this Act relating to marketability of title 
or any other limitation in this Act that the Secretary determines is 
contrary to promoting the availability of such insurance on Hawai- 
ian home lands, if— 

"(1) the mortgage is executed by a native Hawaiian on prop- 
erty located within Hawaiian home lands covered under a 
homestead lease issued under section 207(a] of the Hawaiian 
Homes Commission Act, ISM, or under the corresponding provi- 
sion of the Constitution of the State of Hawaii adopted under 
section 1 of the Act entitled "An Act to provide for the admis- 
sion of the State of Hawaii into the Union ', approved March 18, 
1959 (73 Stat. 5>. 

"(2) the property will be used as the principal residence of the 
Mortgagor; and 

"(3) the Department of Hawaiian Home Lands of the Stete of 
Hawaii (A) is a comortgagor; (B) guarantees to reimburse the 



yGoot^le 



PUBLIC LAW 98-181-NOV. 30. 1988 

SMretar; for any mortgage in«urance claim paid in connectioa 
with a property on Hawaiian home lands; or (C) oflua other 
aecurjty acceptable to the Secretary. 
"(b) Notwithstanding any other provision of thia Act, tbtt Saci*- 
tary may, with respect to mortgages eligible for iasurance luidar 
subsection (a), insure and make commitments to insuie advances 
made during construction if the Secretary determiiw that the 
proposed construction is otherwise acceptable and that do fnasibls 
financing alternative is available. 
"(c) For purposes of this section: 

"(DThe term 'native Hawaiian' means any dsacemUnt of not 
less than one-half part of the blood of the racaa inhabitinc th* 
Hawaiian Islands before January 1, 1778. 

"(2) The term 'Hawaiian home lands' means all laitda cmn 
the status of Hawaiian home lands under aectioa 204 of tfae 
Hawaiian Homes Commission Act, 1920, or under Iha cum- 
sponding provision of the Constitution of the State of Hwaii 
adopted under section 4 of the Act entitled "An Act to pravida 
for the admission of the State of Hawaii into the Union", 
approved March IS, 1959 (73 Stat. 5).". 



SINCtJ tAUlLI tlOStCAGI INSUSANCt o: 

"Sec. 248. (a) The Secretary, subject to such special conditioaa as 
the Secretary may prescribe, may iruure under any provisiori at this 
title that authorizes such insurance, a mortgage covering a ptofMr^ 
upon which there is located a one- to four-family residence, w i tho u t 
regard to any limitation in this Act relating to marketabilitjr of tiUa 
or any other limitation in this Act that the Secretary detMnninaa ii 
contrary to promoting the availability of such insurance on 1~Hian 
reaervations if the mortgage (1) is executed by en Indian triba nd 
the property is located on trust or otherwise restricted landa; or (S ii 
eiecul«d by a member of an Indian tribe who will use the rmmttj 
as a principal residence and the property is on trust (anoa w 
otherwise roitricted land. 

"(b) Notwithstanding any other provision of this Act, with rsapatt 
to mortgages covering a property upon which there is locatad a ona- 
to four-family residence — 

"(1) uie Secretary may insure and make commitmonta In 
insure under this title pursuant to this section advanoaa mad* 
during construction where the Secretary determines that the 
proposed construction is otherwise acceptable end meats aa 
applicable tribal or national model building code, and that no 
bauble financing alternative is available; 

"(2) the applicable percentage limitation on the amount of tha 
principal obligation of a mortgage based on the appraiaad valos 
or replacement cost, as appropriate, of a one- to feur-fiunily 
owner-occupied residence contained in this title shall apply ia 
the case of all mortgages insured pursuant to this aaction 
without regard to whether the residences are ownsriKcupiad 
where the residences are owned by the tribe; and 



yGoot^le 



PUBUC LAW 98-181— NOV. 30. 1983 

"(3XA) the Secretary may require an Indian tribe, only m a 
condition of insurance made under this title pursuant to this 
•ection, to pledge income from tribal resources or income from 
tribal osseta not subject to a rettriction by the Secretary of the 
Interior or pledge grants under title 1 of the Housing and 
Community Development Act of 1974 or any other Federal 
inis(«red bv the Secretary of Housing and 



pant program administered bv the Secretary of Housing and 
Urban Development to be used to reimburae the Secretary for 
any mortgage insurance claims paid in connection with red- 
dencee insured pursuant (o this section; or 

"(Bl in the case of an individual Indian mortgagor, the Secre- 
tary may require a pledge of his or her share of distribulieid 
income from tribal resources or income from tribal assets, 
excluding any Federal grants received by the tribe. 

"(c) The Secretary may not refuse to insure a mortgage under this 
section to an individual home purchaser because there is no distrib- 
uted tribal or trust fund income attributable to that purchaser. 

"(d) Before making any commitment to insure a mortgage under 
this section with respect to property located on tribal or trust land, 
the Secretary shall require a showing by the tribe that it has 
adopted eviction procedures to be used in the event of a default 

"(e) A mortgage insured under this section may be assumed, 
subject to credit approval by the lender and the consent of the tribe 
to an assumption o( the existing lease or the grant of a new lease, 
without an adjustment of the interest rate. Any other sale of a 
property subject to a mortgage insured under this section may be 
made only if a new lease is granted, except that a sale following a 
foreclosure may be accompanied by an assumption of the lease with 
the consent of the tribe. 

"(fXU The Secretary shall make information regarding the status 
and payment history of loans insured under this section available to 
local credit bureaus and proapective creditors. Prior to accepting 
assignment of a mortgage, the Secretary shall require mortgagees to 
submit documentation that mortgagors have been counseled in a 
face-to-face interview, informed of die provisions of this subsection 
or other available assistance, and provided with the names and 
addresses of ofTicials of the Department of Housing and Urban 
Development to whom further communications shall M addressed. 

"(2) Notwithstanding the requirement for convevance of title 
under section 204, a mortgagee under this section shall be entitled to 
receive the benefit of insurance under this section in the case of a 
mortgage which is more than 90 days in default upon conveyance of 
the lease agreement and the mortgage documents. 

"(3) In the event that any default is cured, the Secretary shall 
seek to reinstate the loan with the mortgagee or another mortgagee. 
For purposes of this paragraph, the Secretary may provide appropri- 
ate financial incentives to reinstate the loan commensurate with 
sound management of the insurance fund. 

"(4) If the Secretary determines that a mortgagor is not making a 
good-faith effort to cure a default, and that trust fund or tribal 
income is available under subsection (bX3XB), the Secretary shall 
commence proceedings for the garnishment of the mortgagor's dis- 
tributed share of trituil or trust fund income in order to collect loan 
Cyments that are past due. Proceedings under this paragraph ma} 
instituted in a tribal court, court of competent jurisdiction desig- 
nated by the tribe, or Federal district court. 



yGoot^le 



PUBUC LAW 98-181— NOV. 30. 1983 

"(5j If the Secretary determines such action ia necaMary to ^mUct 
the iniurance Tund from undue loe*. the Secretary may mitiata 
forecloBure proceedings with reapcct to any mortcaga acquired 
under this subaection. Such proceeding ma; taka place in • tiftal 
court, a court of competent juriadiction, or Federal district coiiit. 
Any Buch court shall mive junadiction to convey to the Secnten the 
remaining life of a lease on the real property and to order evictioa <f 
the delinquent mortgagor. 

iniatratii 

u charge for ii 
cover the full costs of the mortgage ii 
section, except that such charge may i 

annum of the principal amount of the mortgage outstanding at 
time. Not later than SeptembeT 30. 1984, the Secretaty shall dataf- 
mineand report to the Congress on thefeaaibility of eliminating any 
eitcesa amount of the premium under this section over the^cmium 
under section 203. In the event such premiums are not sufnciwit to 
cover the full costs of the mortgage insurance program under tluB 
section, the Secretary shall make recommendations U '' " 



that will be sulTicient to 
program undar this 
[ceed 3 percMit per 



"(1) The term 'Indian tribe' means any Indian o 
native tribe, band, nation, or other organized group oi 
nity of Indians or Alaska natives recognized as eluible for the 
services provided to Indians or Alaska natives by the Secretary 
of the Interior because of ita status as such an entity, or that ■ 
an eligible recipient under chapter 67 of title 31. United StaAsa 
Code. 

"(2) The term 'trust or otherwise restricted land' maana (A) 
that area of land, as defmed by the Secretary of the Interior, 
over which an Indian tribe is recognized by the United State* as 
having governmental jurisdiction; (B) land held in trust flM' the 
benefit of any Indian tribe or individual or held by any Indian 
tribe or individual subject to a restriction by the United States 
against alienation; or (C) land acquired by Alaska natives under 
the Alaska Native Claims Settlement Act or any other Iwid 
acquired by Alaska natives pursuant to statute by virtue of 
their unique status as Alaska natives.". 

HOUBINC ADMIN IBniATION 8IKGU FAMILY 



Sk. 423. (a) Section 203 of the National Housing Act is 
by inserting the following new subsection after subsection (c); 

"(d) Notwithstanding any provision of this title governing maii- 
mum mortgage amounts for msuring a mortgage secured by a ooa- 
to four-family dwelling, the maximum amount of the mortgua 
determined under any such provision may be increased by the 
amount of the mortgage insurance premium paid at the time the 



by striking out the following: ": Prouidtd, That the foregoing n 

mum mortgage amounts may be increased by the amount of tb* 
mortgage insurance premium paid at the time the mortgag* ia 
insured . 

(2) Section 213(bX2) of such Act is amended by striking out the 
following; "; Prooided furttur. That the foregoing n 



yGoot^le 



mortgage 



PUBLIC LAW 98-181-NOV. ! 



gage amounts may be increased by the amount of the r 
insurance premium paid at the time the mortgage ii i 

(3) Section 221(dK2XA) oTsuch Act is amended by striking out the 
following: ": Provided further. That the foregoing maximum mort- 
gage amount! may be increased by the amount of the mortgage 
insurance premium paid at the time the mortgage ia insured '. 

(4 ) Qause <A) of the third sentence of section 234(c) of such Act is 
amended by striking out the following: ": Provided. That the forgo- 
ing maximum mortgage amounts may be increased by the amount 
of the mortgage insurance premium paid at the time the mortgage is 

(5) Section 235(i) of such Act is amended— 

(A) by striking out in paragraph (3NB) the following: ": Pm- 
vidtd. That the foregoing maximum mortgs^ amounta may be 
increased by the amount of the mortgage insurance premium 
paid at the time the mortgage is insured": 

. (B) by striking out in paragraph (3KC) the following: "; Pro- 
vided, That the foregoing maximum mortgage amounts may be 
increased by the amount of the mortgage insurance premium 
paid at the time the mortgage is insured"; and 

(Q by striking out in paragraph (3XD) the fallowing: ": Pro- 
vided, That the foregoing maximum mortgage amounts may be 
increased by the amount of the mortgage insurance premium 
paid at the time the mortgage is insured". 
(c> The amendments made by this section shall take effect only if 
the Secretary of Housing and Urhan Development determines that 
the program of advance payment of insurance premiums, with 
specific regard to the effect of the provisions authorized by the 
amendments made by such sections, is actuarially sound. 

N-TO-VALUI KATIO H 



Sbc. 424. (aJ Section 203(bK2) of the National Housing Act is 
amended— 

(1) by striking out "(except as provided in the next to the last 
aentence of this paragraph)" in the TirM sentence and inserting 
in lieu thereof the following: "lexcept as otherwise provided in 
thia paragraph)": and 

(2) by inserting after the first sentence the following new 
sentence: "If the mortgage to be insured under this section 
covers property on which there is located a one- to four-family 
residence to be occupied as the principal residence of the owner, 
•nd the appraised value of the prc^mty, as of the date the 
mortgage is accepted for insurance, does not exceed $50,000, the 
principal obligation may be in an amount not to exceed 97 
percent of such appraised value.", 

(&) The amendment made by subsection la) shall take effect only if 
the Secretary finds and reports to the Congress that such amend- 
ment, taking into account the higher loan-to-value ratio resulting 
from the advance payment of mortgage insurance premiums, will 
not adversely affect the actuarial soundness of the Federal Housing 
Administration mortgage insurance program. 



CongreflO- 

12 use 1J09 



yGoot^le 



66 

97 STAT. 1218 PUBUC LAW 98-181— NOV. 30, 1983 



Sac. 425. Section 203a>XS) of the National Housing Act ii amendad 
by itrikinK out alt that follows "an amount «qual to" thitiu^ 
"Bubaection:" and inserting in lieu thereof the followinc: " ' 
of (A) the otherwise applicable n ' 



rATMENT or ctjLiua wmtour AcquwmoM or Tin.! 

Sk. 426. (a) Section 204(a) of the NaUonal HouMm Act ii 
•mended— 

(1) by Btriking out "Upon such conveyance and aangnmmOC 
in the second sentence and inserting in lieu thereof Um falkw- 
ing: "The Secretary is also authoriied, in accordanM with audi 
regulations as the Secretary may prt^cribe, to make th» beneflt 
of the insurance u hereinafter provided available to ths mort- 
gagee, notwithstanding any provision of this aectton iMpiiriaf 
conveyance of title to the property to the Secretary, (1> upon 
sale of the insured property at foreclosure, where such ••)• Ji 
for at least the fair market value of the property (with appnipri- 
ate attjustments). as determined by the Secretary, and W tt|Nn 
the assignment to the Secretary of all claims l afe n ad to im 
clause (2) of the preceding sentence. The paymant of b 
under the preceding sentence may be made for any n 
insured pursuant to a commitment to insure iwued on or anar 
the effective date of this sentence and. with the approval afUw 
mortgagee, for any mortgage insured pursuant to a CMnout- 
ment issued before that date. Upon the conveyance and aMB|ti- 
ment referred to in the first sentence of this section or th* aale 
and Bissignment referred to in the second sentence of tfaii 
Bubeection,"; and 

(2) by atriking out "and any amount" and all that follow* 
through the colon preceding the first proviso of the final aen- 
tence and inserting in lieu thereof the following: "any amoiuit 
received as rent or other income from the property, lea* re ■■on- 
able expenses incurred in handling the property, after aithar of 
such dates, and, in the case of insurance benefits paid in 
accordance with the second sentence of this section, any aanouiit 
received upon the forecloeure sale of the property:". 

(b) Section 204(j} of such Act is amended by inserting after "under 
section 203" the following: "lother than a mortgagee raceJTing 
insurance beneflta under the second sentence of BubeectkM (ajr 

rTRUCTUILAL DBPKC18 IM VETKHANS' ADMINlSTKATION-ArrKOVn, 
miERAL HOUSING ADMINISTRATION -INSURED NEW HOME* 



Sec. 427. Section S18(aJ of the National Housing Act it a: 
by striking out "approved for mortgage insurance prior to tbt 
beginning of construction which he finds" and inserting in Uau 
thereof the following: "that, before the banning of conttruetion, 
was approved for mortgage insurance under this Act or tot 
guaranty, insurance, or a direct loan under chapter 37 of title M, 
United States Code, end that the Secretary finds". 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

KEINSURANCK DEMONfffRATION PBOGHAH 



"SEINSUBANCE CONTHACTS 

"Sec. 249. (a) The purpose of this KCtion is to authorize a demon- 
■tnition mortgage reinsurance program designed to test the reaaibil- 
ity of entering into reinsurance contracts with private mottgage 
insurers in order to reduce Government risk and administrative 
coots, and to speed mortgage processing. The Secretary shall limit 
the demonstration under this section to not more than two adminis- 
trative regions of the Department of Housing and Urban Develop- 
ment, and shell assure that the program is in the financial interest 
of the Government and will not result in loss of employment by any 
employees of the Department of Housing and Urban Development 
before September 30, 1985. The aggrt^ate number of mortgages 
insured under this section in any administrative r^on erf the 
Department of Housing and Urban Development in any fiscal year 
mav not exceed 10 percent of the aggregate number ot mortgages 
and loans insured by the Secretary under this title in such region 
during the preceding fiscal year, 

"(b) Notwithstanding any other provision of this Act incorwstent 
with this section, the Secretary is authorised to provide mortgage 
inaurance with respect to one- to four-family dwellings under sec- 
tions 203(bl, 234, and 245 through reinsurance contracts with private 
mortmge insurance companies Which have been detemtined to be 
qualified insurers under section 30g(bX2XO. Such contracts shall 
require private mortgage insurance companies to — 

"lU assume a percentage of loss on any mortgage insured 
pursuant to section 203(b), 234. or 245 covering a one- to four 
family dwelling, which percentage of loss shall be set forth in 
the reinsurance contract; and 

"(2) carry out (under appropriate delegation) such credit ap- 
proval, appraisal, inspection, commitment, claims processing, 
property disposition, or other function as the Secretary puiau- 
ant to regulations, shall approve as consistent with the purpoees 
of this section. 
"(c) Any contract of reinsurance under this section shall contain 
such provisions relating to the sharing of premiums on a sound 
actuarial basis, establishment of insurance reserves, manner of 
calculating claims on such insurance, conditions with respect to 
foreclosure, handling and disposition of property prior to claim or 
settlement, right of assignees, and other similar matters as the 
Secretary may prescribe pursuant to regulations. Pursuant to a 
contract under this section, a private mortgage insurance company 
shall endorse loans for insurance and take such other actions on 
behalf of the Secretary and in the Secretary's name as the Secretary 
may authorize. 

'li) The Secretary shall require any private mortgage insurance 
company participating in the program under this section to provide 
reinsurance for those mortgages offered by the Secretary for inclu- 
sion in the program.", 

(bl The Secretary of Housing and Urban Development shall evalu- 
ate the reinsurance program under section 249 of the National 
Housing Act and, not later than March 1, 1985, submit to the 



12 use no9, 

ITISy, nibz-W. 

ij use nn 



yGoot^le 



PUBLIC LAW 98-181-NOV. 30. 1988 

Congress b report setting forth the results of such evBluation. ! 
report shall include an evaluation of the possible efTect of a 
ance pTagram on the charscteristio of the pool of m 
remaining wholly under the applicable insurance funds and the 
actuarial soundness of such funds under such conditions. 

Subpart 3— Multifamily and Other Mortgage 



Sk. 431. (a) Section ZOTOtXZ) of the NatknuJ Hausing Act >• 
amended— 

(1) by strilting out "any other mortgagor approvad by tha 
Secretary" and all that follows through "reasonable return on 
the investment." and inserting in lieu thereof the folkniinf: 
"any other mortgagor approved by the Secretary. The SecitttBir 
may. in the Secretary's discretion, require any such mortca^BT 
to be regulated or restricted as to rents or sales, iliargea, capital 
structure, rate of return, and methods of opermtknt so ■■ to 
provide reasonable rentals to tenants and a tcaaonaU* t«tani 
on the investment. Any such regulations or restHctiotis dull 
continue for such period or periods as the Secretary, in tfae 
Secretary's discretion, may require, including until the termina- 
tion of all obligations of the Secretary under the insuranc* and 
during such further period of time as the Secretary shall b« the 
owner, holder, or reinsurer of the mortgage"; 

(2) t^ striking out "render effective Uie rt^lationa or wtric 
tions" and inserting in lieu thereof "render effective any aadt 
regulations or restrictions"; and 

(3) by striking out "and directed" in the second senteooe of 
the first undesignated paragraph. 

(b) Section 234(dK2) of such Act is amended— 

(1) by striking out "shall be regulated or restricted by tha 
Secretary" and inserting in lieu thereof "may, in the Sacra- 
tary's discretion, be regulated or restricted"; and 

(2) by striking out "the regulation and restriction" and inaart- 
ing in lieu thereof "any such regulation or restriction". 

(cl The amendments made in this section shall not apply with 
respect to mortgages insured by the Secretary of Housing and 
Urban Development before the date of the enactment of this AcL 

N CDtTAIN MULTIPAIiaLT 



12 use 1715k. Sec. 432. la) Section 220(dX3KBNii) of the National Housing Act a 

amended by striking out "Provided further," the first time it m^ 
pears and all that follows through "property or project.". 
IZ use 1715/, (b) SecUon 221(d)(3Kiii) of such Act is amended- 

(II by striking out "Pmmded. That" and all that follow* 
through "property or project:"; and 
(2) hy striking out further" the first time it appear*. 
Id Section 221ldX4Mivl of such Act U amended- 

(1) by striking out "Prooided, That" and all thai tbllowa 
through ''property or project:"; and 
<2) by striking out "further" the Tint time it appear*. 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 97 STAT. 1221 

UMTTATION ON ntEPATMBNT OP kinSTOAOn OM llVLTirAMn.T ICNTAL 



UUITATION ON PKXPAVIIINT Or UOKIOACB OM ltVLrttAUB.\ 



"Sbc. 250. (a) During any period in which an owner of ■ multi- 12 U8C 

family rental housing project ia required to obtain the approval of I^i5i-I5. 
the Secretary for prepayment of the mortgage, the Secretary shall 
not accept an offer to prepay the mortgage on such project unless — 
"(1) the Secretary has determined that such project is no 
longer meeting a need for rental housing for lower income 
families in the area or that the needs of lower income familiea 
in such project can more efTiciently and effectively be met 
through other Federal housing assistance taking into account 
the remaining time the project could meet such needs; 

"(2) the Secretary (A) haa determined that the tenants have 
been notifled of the owner's request for approval of a prepay- 
ment; (B) has provided the tenants with an opportunity to 
comment on the owner's request; and <C) has taken such com- 
ments into consideration ; and 

"(3) the Secretary has ensured that there is a plan for provid- 
ing relocation asaiatance for adequate, comparable housing for 
any lower income tenant who will be displaced as a result of the 
prepayment and withdrawal of the project from the program. 
"(b) In the case of a project oBsisted under secUon 236 or the 12 USC lTI5z-l. 

proviso to section 221(dX5) of this title, section 101 of the Housing IZ USC ITIS/. 

and Urban Development Act of 1965. or section 202 of the Housing 12 USC ITOla. 42 

Act of 1959 where the owner has the right to prepay the mortgage V^usc^itoiq. 

covering the assisted project without the Secretary's approval, the ^ 

Secretary shall give a priority for additional assistance under sec- 
tion 8 of the United States Housing Act of 1937 and section 201 of 42 USC i43Tr. 
the Housing and Community Development Amendments of 1978 to 12 USC ITiSi-l 

tenants and applicants to become tenants of the project, if — i? i 'k°l'' 

"(1) fun^ to provide such additional BSsistance are available; ' ' 

"(2) the Secretary determines that making such additional 
assistance available to the project is necessary to prevent the 
owner from prepaying the mortgage. 
"(c) Any owner of a mullifaroily rental housing project referred to 
in subsection (b) who receives additional assistance under section 8 
of the United States Housing Act of 193T under the priority estab- 42 USC UVt. 
lished in subsection (b) shall— 

"(1) fully utilize the assistance which is available; 
"(2) grant a priority to applicants to became tenants who have 
the lowest incomes; and 

"(3) maintain the low-income character of the project for a 

period at least equal to the remaining term of the project 

mortgage to the extent that assistance is provided. 

"(d) For purposes of this section, the term 'lower income families' 

has the meaning given such term in section 3(bX2) of the United 

States Housing Act of 1937.". « use 143T» 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 198S 
AmuumoH or torn undo iiuLnrAuav oMinuKAMcc 



12 use niSi-9 S(C. 434. Section 244(g) of the NaUon»l Hoiuinc Act ia a: 

(1) in paragraph (1), by •trikiiu out "th* ino rtg aya ia ■public 
housing agency or an iniured depoutory inatitutioo and ; and 

(2) by itriking out paragraph {SI and inserting in lieu thereof 
the foJlowing new paragraph: 

'\5) As used in this subeection, the term 'public boudnc ■■mcjr' 
has the meaning given such term in section 3(bK€) of tlM United 
42 VSC M8T.. SUtes HousinK Act <rf 1937.". 

a MANUfACTUIKD HOKE r*axa n« TIB 



Sk. 435. The Tirst sentence of the second undengnat 



1^ 



wgnik 



12 DSC ni5i-7. 



12 use ITlSw. 



Ai use l»B2a. 



n 20T(b) of the National Housing Act H m 
out "no mortsege shall be insured hereunder" and li 
thereof the fMlowing: "the Secretary may not insura any n 

under this section (eiuxpt a mortgage with reapact to a n 

1 home park deaigned exclusively for occupancy hj ddarty 



klORTQAOl INSUKANCa r 



t PUBUC KOBPcrAU 



BC. 436. Section 242 of the National Housing Act is »»Miwliri- 
(11 by inserting "public facility," in subsection (bXlXO aftw 
"which is a"; and 
(2) by inserting the following before the period at tlM aid tf 
" n (!> ", and. in the case of public hoapitala, to OMOur- 
is that are undertaken to provide iiMenfial baaltti 
I to all teeidents of a community regardlasa c( 
ability to pay". 

MORTGAOB INBUKANCI fOB BOABD AND CARB HOM^ 

Stc. 437. (a) Section 232(aX2) of the National Hoiuing Act il 
amended by inserting "and board and care homea" after "intarmaiB- 
ate care facilitiea". 
(b) Section 232(b) of such Act ia amended— 

<l) by atriking out the period at the end of paragraph (3) and 
Inserting in lieu thereof ; and"; and 
(2) by adding the following new paragraph at the and thancC 
"(4) the term "board and care home^ means any reatdnitial 
facility providing room, board, and continuous prtrtactiva awf 
sight that is regulated by a State pursuant to the pr onriatona «f 
section lG16(e1 of the Social Security Act, ao long as the hotMll 
located in a State that, at the time of an applicatiMi ia mada fir 
insurance under this section, has demonstrated to the Sacrataiy 
that it is in compliance with the provisions of aueh aaetlM 
IGlfte).". 
(cKl) Section 232(d) of such Act is amended by inaarting "er ■' 
board and care home" after "intermediate care facility" th* aacood 
place it appears. 
(2) Section 232(dX4} of such Act is amended— 

(A) by atriking out "The" in the first sentence and Inaailint 
in lieu thereof tlie following^ "(A) With mpeet to But«fB( 
homea and intermediate care facilitiea and combiiMd nut^Bf 
home and intermediate care facilitiea. the": 



yGoot^le 



PUBUC LAW 98-181— NOV. 80, 1983 

(B) by atnking out "(A)" and "(B)" in the flnt sentence and 
inMiling in lieu thereof "(i)" and "(ii)", reapectivetv; and 

(O by adding the following new subparagraph at the end 
thereof: 

"(B) With respect to board and care homes, the Secretary 
■hall not insure any mortgage under this section unleai he has 
received from the appropriate State licensing agency a state- 
ment verifying that trie State in which the home ia or is to be 
located is in compliance wiUi the provisions of section 1616(el of 
the Social Security Act", 42 use I382e 



Education, and Welfare" and ii 



(e) Section Z32(h) of such Act is amended by striking out "Health, 
Education, and Welfare" and inaerting in lieu there<rf "Health and 
Human Services". 

(f>l) Section 23aiXl) of such Act is amended— 

(A) t^ inaertirig "or to board and care homes" after "i 



(B) by inserting the following after "Association": "(or any 
subsequent edition specified by the Secretary of Health and 
Human Services)"; 

(Q by striking out "Health, Education, and Welfare" and 
inserting in lieu thereof "Health and Human Services"; and 

(D) by inserting the following before the period at the end 
thereof: "or as mandated by a State under the provisions of 
section 1616(e) of such Act". 
(2) Section 232(i)(2) of such Act is amended— 

(A) by striking out "and" at the end of subparagraph (DY, 

(B) by striking out the period at the end of subparagraph (E) 
and inserting in lieu thereof "; and"; and 

(C) by adding the following new subparagraph at the end 
thereof: 

"(F) in the case of board and care homes, be made with 

respect to such a home located in a State with respect to which 

the Secretary has received from the appropriate State licensing 

agency a statement veri^ring that the State in which the home 

is or IS to be located is in compliance with the provisions of 

section 1616(e) of the Social Security Act.". 

(g) The section heading of section 232 of the National Housing Act 

is amended to read as follows: "Mortgage Insurance tor Nursing 

Homes, Intermediate Care Facilities, and Board and Care Homea' . 

Subpart 4 — Insurance of Alternative Mortgage Instruments 



. 441. (a) Section 245(a) of the National Housmg Act is 



(1) in the first sentence, by insertins after "income" the 
followitw: "or with monthly payments end outstanding balances 
a4)usted by a percentage change in a selected price index": and 

(2) in the second sentence, by striking out "subsection (b) and 
inaerting in lieu thereof "subsections (b) and (c)". 

(b) Section 245 of such Act is amended l^ redesignating subeection 
(e) aa subsectum (d) and by inserting the following new subeection 
• ■■111(b): 



lauscnisw. 



yGoot^le 



PUBLIC LAW 98-181— NOV. 30. 198S 

"(cl Notwithatanding the pnrtiaiatm of aufaMCtion W. tb* Ski*- 
tary may insure under any prDviaion of thk till* a ntortof* or Ioh 
that meeU the requirement* of the flrct ■entance at suMcti^ it) 
and that ha* provuion* permitting adjuatment of moaOdj \ 
and outatanding principal according to changes or pen 
changM in a wleetod price indei if the Secretary d* 
"(1) the principal obligation of tbe i 



Md the percentage at the initial appraind vate rf 
the proper^ ■pecifwd in aection 203(b> aa oT tha 4a^ Om 
mortgage or loan i* accepted for inaunmee; and 
"(2) the moDthlv payment* and principal oHi^tii of tt* 

mortgage or loan thereafter will not at any time be in *-* 

a rate greater than the percentage change in the p 
■tipulatad in the initial mortgage or loan c utttr art. 
In carrying out this subaection, the Secretan riiall give a , 

mortgagee executed by mortgagors who, ea detennined h^ the 

tory, have not owned dwelluig unit* within the pacediiig I jmn. 
The SecreUiy shatl. not later than March 31. 1984. piMerUa ranln- 
tion* establuhing guideline* governing mortgage* and mm 
deacrihed in this ■uhsection and ehall, to the extent ptaOiaUa, 
conduct a demonstration program to insure mortgagea Md Imbi ii 
accordance with thi* Bubaection during fiacal yean 19U and UK. 
The aggregate number of mort^igea and loan* ii 



exceed 10 percent of the aggregate number 
insured by the Secretary under this title during the 
year.". 

(c) "nie section headmg of section 245 of auch Act ia 
read aa follow*; " 



CXADUATED 

Sic. 442. Section 245 of the National Housing Act, ai 
section 441, i* amended 1^ — 

(l)redesifpiating subaection (dlasaubaection(«)l I 

(2) inserUng after subaection (c) the following nv . 

"(dXl) The Secretary may insure, under any proviaiao of thia lM« 
relating to multifamily housing projects, mortgage* and loaaa wilk 
provisions of varying rate* of amortization eorreaponJing to t 



1 the ( 



t the 



determine* mich mortgage* or loans (A) have promiae for ■■nairflag 
houaing on)ortunitie* or meet special needs; <B) can be devalupadii 
include any caf^uarda for mortgagors, tenants, or puirhaaeia thai 
may be naceaaary to offaet special riak* of auch mortgaga^ and (O 
have a potential lor acceptance in the private market. 

"(2) Notwithstanding any other provision of thi* title, the prind- 
pal obligation of a mortgage or loan inaured pursuant to thil 
aubaection— 

"(A) may not exceed initially the percentage of the initial 
appraiaed value or replacement coat (tf the pinpertji ~~ 
that is required by the provision of this title under w 
property is insured; end 

"(B) thereafter (including all intereat to be deforred am 
to principal) may not at any time be acheduled to aaa 
percent of the projected value of auch property. 
"(Si Tot purpoae* of this subaection. the proiectad vali 
propMty ahall be calculated by the Secretary by ino 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 



AMunABLX kxn uoKTOAOts roft aiNOLa rAutLV Housmo 



"AtUUSTABU KATV BINOI^C rAMILV MOKTCAOia 

"Sbc 251. <a) The Secretary may insure under any provision of 
this title a mortgage involving property upon which there is tocat«d 
a dwelling designed principally for occupancy by one to four fami- 
lies, where the mortgage provides for periodic adjuBtments by the 
mortgagee in the ef^ctive rate of interest charged. Such interest 
rate attjuetmenti may be accomplished through adjustmenta in the 
monthly payment amount, the outitanding principal balance, or Uie 
mortgage term, or a combination of these factors, except that in no 
case may any extension of a mortgage term result in a total term in 
•xsess of 40 year*. Aitiuatmenta in the effective rate of interest shall 
correspond to a specified nationa] intsrest rate index approved in 
regulations by the Secretary, information on which is readily acces- 
sible to mortgagor* from generally available published sources. 
A4justmenta in the effective rate of interest shall (1) be made on an 
annual basis; (2) be limited, with respect to any single interest rate 
incraase, to no more than I percent on the outstanding loan balance; 
and (3) be limited to a maximum increase of 5 percentage points 
above the initial contract interest rate over the term of the 



mortgan. 

"(b) The Secretary shall issue r^ulations requiring that the 
mOTtga^ make available to die mortgager, at the time of loan 
application, a written eiplanation of the features of the ailiustabla 
rat« mortgage, including a hn>othetical payment schedule that 
displays the maximum potential increases m monthly payments to 
the mortgagOTOver the first 5 years of the mortgage term. 

"(c) The aggregate number of mortgages and loans insured under 
this section, section 245(c), and section 252 in any fiscal year may 
not exceed 10 percent of the aggregate number of mortgages and 
loans insured Iqr the Secretary under this title during the preceding 
fiscal year.", 

SHAKED APPaaCtATION UOETOAon rOE SINQU fAMnv HOUSlNa 



"Sic 2S2. (a) Notwithstanding any provision of this title that is 
inconsistent with this section, the Secretary may insui«, under any 
provision of this title providing for insurance of mortgages on 
properties upon which there is located a dwelling designed prind- 
pally (br occupancy by one to four families, a mortgage secured b^ a 
first lien on such a property or on the stock allocatad to a dwelling 
unit in a residential cooperative housing corporation, which — 

"(1) provides for the mortgagee to share in a predetermined 
percentage of the property's or stock's net appreciated value; 



yGoot^le 



PUBUC LAW 98-181— NOV. 30. 198S 

"(2) bMis iiit«r«at at a rate which a 
theSMmUiv; 

"(3) providei for amortiiation over a period of not to BKcaad M 
yeart. but th« actual t«nn of the mortg^a (axduditv WIT 
rafmancin^) may be not lew than 10 nor more than 30 ytmn, 
and contain* nich proviaiont relating to rafinanciiv « Iht 
principal balance of the mortgage and an; coatiivant datend 

le SecietaiT Bajrraqnin 



by regulation. 



■ ahara of a property'* 



Secretary) of the property or stock or payment in full of the n . 
"Net gi^e, wluchever occur* Hnt For purpoaea of thia Mciioo, tfaa t«B 

appndatcd ^n^t appreciated value' mean* the amount bv which the aalaa prica 

*■""■ of tha property or itock Oes* the mortmora ■)'" — " 

the value of the property or atock at the time 
insure ii iaaued (with at^uBtment* for capital ii. , . . 

lated in the loan contract). If there has faeco no aale or b 

the time the mortga^'i ahare of net appreciBt«d value bwoaan 
payable, the aales price for purpoaea (tf tnt* ■action ahall b« Jatar 
mmed by mean* of an appraual conducted in accordance with 
procedurea approved by the Secretary and provided for in tbt 
mortgage. 
"(c) In the event of a default, the mortgagee ahall ba entttM ts 
Ante. p. 1218. receive the beneTita of iniurance in accordance with aectioM HUttX 

but *uch insurance benefit* shall not include the mortfame's mbtn 
indpal oMigat' 



appreciated value. The term 'original principal OMlga' 
□rtgage' as used in tection 204 thall not include tha a 



the mortgage' 



gee'* share of net appreciated value. 

"(d) Mortgages insured purauant to thi* section which c 
pravi*ion* for iharing appreciation or which otherwisa r 
permit increases in the outstanding loan balance whid> a 
lied under this section or under applicable rcgulationa ihall not bt 
subject to any State constitution, statute, court decree, '™"""" law, 
rule, or public policy limiting or prohibiting incfaaaie in the «ut- 
■tanding loan balance after execution of the mortgage. 

"(e) In carrying out the provision* of this •ection, the Sacntan 
ahall encourage U)e use of inaurance under this sectioD fay low ana 
moderate income tenants who wonld otherwise be displaced faj the 
conversion of their rental housing to condominiui 
ownership. 

"(0 The Secretary shall prescribe adequate consumer p 
and disclosure miuirements with rcepect to mortgagee mauieo 
under this section, and may pracribe such other tanna and eondi- 
tions as may be appropriate to carry out the proviaiona of this 



"(g) The 



number of 



lortgagea and loans insured wndar 



not exceed 10 percent of the aggregate number of mortgagea 
loan* iniurad i^ the Secretary under thi* title during tha 
flsea] year.", 

SHAKED APFUCIATION klOaTOACn FOR MULTirAMILV HOUaMO 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

"BHABKO APPBICUTION MORTCAQtS FOR MULTirAMILIr HOUSING 

"Sic. 253. (a) Notwithitanding any proviaion of thia title that ia 
inconaiatent with thii aMtion, tbi Sacratary may inaure, under any 
proviaioa of thia titia providing for insurance of mortgagee on 
pTopertiei including 5 or more family units, a mortgage secured by a 
tint lien on tha property that (1) pnmdes far the mortgagee to share 
in a predetennuwd percentage of the property's net anireciated 
value; and (2) meets such other conditions, including limitations on 
the rate of interest which may be charged, as the Secretary may 
require by reflation. 

"(b) The mortgagee's share of a property's net appreciated value 
shall be payable upon maturity or upon payment in full of Um loan 
or sale or transfer (as defined by the Secretary) of the property, 
whichever occurs Tiret Hie term of the mortgage shall not be leas 
than 15 years, and shall be repayable in equal monthly installments 
of principal and fixed interest during die mortgage term in an 
amount which would be sufficient to retire a debt with the same 
principal and fixed interest rate over a period not exceeding 30 
years. In the case of a mortgage which will not be completely 
amortized during the mortgage term, the principal obligation of tlu 
mortgage may not exceed 85 percent of the estimated value of the 
property or prctfect. For purposes of this section, the term 'net 
appreciated value' meana the amount by which the sales price of the 
pitnerty Oess the mortgagor's selling costs) exceeds the value (or 
replacement cost, as appropriate) of the property at the time the 
commitment to insure is issued (with adiustments for capital im- 
provements stipulated in the loan contract). If there has been no 
sale or transfer at the time the mortgagee's share of net appreciated 
value becomes payable, the salea price for purposes of thu section 
•hall be determined by means of an appraisal conducted in accord- 
ance with procedures approved by the Secretary and provided for in 
the mortgage, 

"(c) In the event of a default, the mortgagee shall be entitled to 
receive the beneflts of insurance in accordance with section 204, but 
such insurance benefits shall not include the mortgagee's share of 
not appreciated value. The term 'original principal obligation of the 
mortgage* as used in section 204(a) shall not include the mortgagee's 
shar« M net appreciated value. 

"(d) 1^ Secretary ahall establiah by regulation the maximum 
percentage of net appreciated value which may be payable to a 
mortgagat as the mortgagee's share. The Secretary shall also estab- 
lish Aselosure requirements applicable to mortgagees making mort- 
gage loans pursuant to this section, to assure that mortgagors are 
infbnnedof the characteristics of such mortgages. 

"(e) Mortgages insured pursuant to this section which contain 
proviaionB for sharing appreciation or which otherwise require or 
permit increasea in the outstanding loan balance which are author- 
tied under thia section or under applicable regulations shall not be 
subject to any State constitution, statute, court decree, common law, 
rule, or public policy limiting or prolubiting increases in the out- 
standing loan balance after execution of the mortgage. 

"(f) 'nie number of dwelling units included in properties covered 
by mortgages insured pursuant to this section in any Tiscal year may 
not exceed 5,0(K).". 



97 STAT. 1227 



SKT'" 



37-922 O - 84 - 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

IKSUKANd or HOmGACCS 



Stc. 446. (a) Th« firat aentencs of the Tirst undwigiwtod pansrub 
of Mction 20T(cK3) of the National Houeuig Act ie ammdad fay 
inaerting immediately after "periodic paymenta" the foUowin^ 
"lunlen otherwiae approved by Uie Secretary)". 

(c) SectioQ 22l)(dK4) of auch Act ia ammded by inaertinc after 
"periodic payment*" the following; "(unleai otherwiaa Bppnmd by 
the Secretatyr. 

(d> Section 221(dX6> of auch Act ia amended by inaertinc aAar 
"periodic payments" the fbllowjnr "(unleai otherwin approved by 
tbeSecTVtaiy)". 

(e) Section 231(cX5} of auch Act ia amended by inaertinc tlbtr 
"periodic paymenta" the following: "(unleia otherwiaa approved fay 
the Secretary/'. 

(0 The aggregate number of dwelling unite included in proper t iea 
covered by mortgage* insured pursuant to the authority gnntad ki 
the amendments made by this section in any fiscal year maj not 
exceed lO.ODO. 

pucutUH CHAKcn roa iNsuaANcs or AvroMA-rm moktoaob 



12 use 1709. Stc 447. The first proviso in section 203(c) of the National Haw- 

ing Act ia amended by inserting after "fixed for inauranoe" tbs 
IZ use fUlowing: "(1) under section 245, 247, 251, 252, or 263. or any oUmt 

'^'Izia^'im' financing mschanism providing alternative methoda for r e p ay m eat 

VSvi of a mortgage that ia determined by the Secretary to invuva wA^ 

tiona]riak,or<2)". 

HDOKT ON ROUS BQUmr CONVXXBION MORTOACn rOR THK ""imiT 

Baport to Sac. 448. The Secretary of Housing and Urban Developmmt shall 

Congma. evaluate the existing use of home equity conversioa martgagea liar 

IZUSC 1709 (]^ elderly and, not later than the expiration of the 1-year period 

'*°^' following the date of the enactment of this Act, submit to the 

Congress a report setting forth the results of such evaluatioo. SuA 

report shall include — 

(1) an evaluation of whether the use of such mortcigca 
improvea the financial situation, or otherwise meets the special 
needs, of elderly homeownen; 

(2) an evaluation of any risks incurred by mortgagor* sa a 
result of the un of such mortgagee, and any reoommandatioas 
of the Secretary for appn^Miate safeguards to be ■"^'■vitid ta 
such mortgagee to minimise such risk*; 

(3) an eviJuation of the potential for acceptanea of auA 
mortgages in the private marketi and 

(4) any rectanmendations of the Secretary for the «_ 
ment of a Federal program of insuring such mortg^ea. 



yGoot^le 



PUBLIC LAW 98-181— NOV. 30, 1983 
Pact B— Fux» and Ptonotrv Inbueancb Pkoosams 



97 STAT. 1229 



Sic. 451. (a) Section 1319 of th* National Flood Iiuurance Act of 
1968 it anwiuM by ftriking out "November 30, 1983" and iiuertinK 
in lieu thereof "September 30, 1986". 

(b) Section 1336(a) irfauch Act is amended by itrikingout "Novem- 
ber 30, 1983" and inserting in lieu thereof "September 30, 1985". 

(c) Section 13T6(c) of «uch Act is amended^ 

(1) by ftriking out "and" after "19S1,"; and 

(2) by inserting the following before the period at the end 
thereof ", not to exceed ^9,752,000 for the rucal year 1984, and 
■ueh Buma aa may be necessary for fiacal year 1985". 

(dXU The National Flood Iniurance Act of 1968 is amended by 
striking out "Secretary" and "Secretary's" each place they appear 
therein (other than aa a reference to a Secretary other than the 
Secretary of Housing and Urban Development) and inserting in lieu 
thereof Director" and "Director'a", reapecUvely. 

(2) Section 1304(a) of such Act is amended by striking out "Secre- 
tary of Housing and Urban Development" and inserting in lieu 
thereof "Director of the Federal Emergency Management Agency". 

(3) Section 1333 of such Act is amended by inserting "original 
exclusive" before "jurisdiction", 

(4) Section 1340(aX2> of such Act is amended b^ striking out 
"oHicera and employees of the Department of Housmg and Urban 
Development, and". 

(5) Section 1341 of such Act is amended by inserting "original 
exclusive" before "jurisdiction", 

(6) Section 1360(aX2) of such Act is amended by striking out 
"within Tifleen years following such date" and inserting in lieu 
thereof "by September 30, 1985'^. 

(7) Section 1360 of such Act is amended by adding at the end 
thereof the following new subsection: 

"(d) The Director shall, not later than September 30, 1984, submit 
to the Congress a plan for bringing all communities containing 
flood-risk sones into full program status by September 30, 1987.. 

(8) Section 1370(bX6) of such Act is amended to read as follows; 

"(6) the term 'Director' means the Director of the Federal 
Emergency Management Agency.". 
(eXl) The Flood Disaster Protection Act of 1973 is amended by 
striking out "Secretary" and "Secretary's" each place they appear 
therein (other than aa a reference to a Secretary other than the 
Secretary of Housing and Urban Development) and inserting in lieu 
thereof ' Director" and "Director's", respectively. 

(2) Section 3(aX6> of such Act is amended to read as follows: 

"(6) 'Director' means the Director of the Federal Emergency 

Management Agency.". 

It) Section 15(e) of the Federal Flood Insurance Act of 1956 is 

■mended by striking out "Secretary" the first and third places it 

appears therein and inserting in lieu thereof "Director of the 

Federal Emergency Management Agency". 

(gXl) Thn premium rates charged for flood insurance under any 
program eatablished pursuant to the National Flood Insurance Act 



AhU. p. 746. 
42 use 4D56. 
42 use 4127, 



date of the enactment of this Act and ending on Septomberlli 



D the 



42 use 40T2. 
42 use 4101 



12 use 4121, 



42 use 4003. 
4012a. 
410.'i-4l07. 412S. 



42 use 4015 
42 use 4001 



yGoot^le 



97 STAT. 1230 



PUBUC LAW 98-181— NOV. 80, 198S 

(2) The Pederal Inaurancc Administrator Ami], aot latw than 
June 30, 1984, aubmit to the CongreM a report with rennet to the 
premium rate itmcture for flood insurance made available pmsoaBt 
to the National Flood Insurance Act of 1968. Such report riiall 
include an explanation of any increases in such pramiuias that tb* 
Administrator anticipat«a will be made before October 1, 198Sl 

CaiME AND MOT INSUaANCI 

Sac. 452. (aXU Section 1201(b)(1) of the National Housii« Act is 
amended Inr striking out "this title shall terminata on Novambar SO, 
1983," and inserting in lieu thereof the followinc: "part B shall 
t«rminala on November 30, 1983. and parts A, C, and D diall 
terminate on September 30, 1984.". 

(2) Section 1201(b) of such Act is amended by adding at tba and 
thereof the following new paragraph: 

"(3) Tht Administrator shall notify participating inauian ondsr 
part B that the reinsurance authority of the Adminiatrator nndsr 
such part shall terminate on November 30, 1983.". 

(bNl) Title XII of such Act w amended by striking out "Secrataty 
and "Secretary's" each place they appear therein (other than aa a 
reference to a Secretar? other than Uie Secretary of Housin| and 
Urban Development) and inserting in lieu thereof "Diractor^ and 
"Director's", respectively. 
<Z) Section 1203(a) of such Act ia amended— 

(A) by striking out "and" at the end of paragraph (15); 
(8} by striking out the period at the end of paragraph (16) and 
inserting "; and ' in lieu thereof; and 
(Q by adding at the end thereof the following new paragraph: 
"(17) 'Director' means the Director of the Federal Emergancgr 
Management Agency.". 

(3) Section 1232(2) of such Act is amended by striking out "officers 
and employees of the Department of Housing and Urban Pavalop- 
ment, and' . 

(4) Section 1247 of such Act is amended by inserting "of tfaa 
Secretary of Housing and Urban Development" after "regulationa)". 



Sac. 453. The Director of the Federal Emer^ncy I 
Agency may make a grant to a nonprofit organization, educatkxtal 
institution or affiliated agency or entity, or State or local agvnn to 
finance a study of the feasibility of expanding the national fknd 
insurance program to cover damage or loss arising trom rinkhoka. 
There is authorized to be appropriated not to exceed 11,000,000 to 
carry out the provisions of this section. 



Pamt C— RsGin^TORT A 



[> OiHiH PnocKAia 



aXAL KfATt snTLBMBNT PBOODURn 



(l)by striking out "and" at the end of paragraph (6); 

(2) 1^ striking out the period at the end of paragraph (fi) and 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

"(7) the term 'ctmtrolM buaiiMM airangnneat' i 
anangeraent in which (A) * penon who is in • poaitio.. . _ _ 
buaincM inddMit to or a part of a raat catat* aettleiuMit aervtca 



_r beneficial ownerehip interert of more than 1 percent in a 
provider of aattlemant aer v icea ; and (B) either of luch peraona 
directly or indirectljr refera auch buaineaa to that provider or 
ftffinnatively influence* the aelection of that provider; and 

"(8) the term 'aaaoeiate' meant one who haa one or more of 
the following relationahipa with a person in a poeition to refer 
aettlement buaineaa: (A) a Hpouae, parent, or child of auch 
person; (B) a corporation or buaineaa entity that controla, ia 
controlled by, or is under common control with auch peraon; (O 
an employer, officer, director, partner, franchisor, or franchiaee 
of auch person; or fD) anyone who ha« an asreement, arrange- 
ment, or understanding, with auch peraon, Uie purpoae or aub- 
•tantial effect of which la to enable the person in a position to 
refer aettlement buainess to benefit financially from the refer- 
rala of such buaineaa.". 

(b) Section 8(c) of such Act is amended— 

(1) by atriking out "or" before "(3)"; 

<2I by ledeaignating clauae (4) aa clauae (5>, 

(3) l^ inaerting the following after "brokere," at the end of 
clauae (3): "(4) controlled buaineaa airangementa ao long as (A) 
at or prior to the time of the referral a dwcloeure ia made of the 
existence of such an arrangement to the person being referred 
Knd, in connection with the referral, such person is provided a 
written estimate of the charge or range of charge* generally 
mode by the provider to which the peraon ia referred, except 
that where a lender makea the referral, tht* requirement may 
be iatisTied aa part of and at the time that the eatimatea M 
aettlement charge* required under section 5(c) are provided. (B) 
auch peraon ia not required to use any particular provider of 
aettlement service*, and (C) the only thing of value that is 
ncaived from the arrangement, other than the payments per- 
mitted under this subsaction, is a return on the ownership 
int«r«at or franchiaa relationship,"; and 

(4) by insertins the following new sententw at the end thereof: 
"For purpoaaa a( the preceding sentence, the fallowing ahall not 
be connitored a violation of clause 4(B): (U any arrangement that 
require* a buyer, borrower, or aeller to pay for the services of an 
attorney, credit reporting agency, or real eatate appraiser 
chosen bj the lander to represent the lender's interest in a real 
aetal* transaction, or (ii) any arrangement where an attorney or 
law firm rspreaanta a client in a real estate trannution and 
iaauea or arranges for the issuance of a policy of title insurance 
in the tranaactioD directly aa agent or through a separate 
corporate title insurance agency that may be •stablished by 
that attorney or law firm and operated ai an adjunct to his or 
its law practice.". 

(c) Section 8(d) of such Act is amended by striking out paragrs^ 
(2) and inserting in lien thereof the following: 

'fZ) Any person or persona who violate tns prohibitions or limita- 
ticna of tnis aactioD ahall be jmntly and aererally liable to the person 
or psnona diarged far the aettlement aervice involved in the viola- 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

tion in an unouut equal to thna timM tb* unount «f »aj ebmigt 
paid for audi Mttlement Nrricw. 

"(3) No peram or peraona ihall be UabU for * vkUiai of dw 
prvvivona of wcticoi fi(cX4XA) if nich person or peric oi pcofas by > 
prapondennce of the evidence that nich vioUtkn ma ■«! 
intentional and naulted from a bona fide error notwitlHtaiidiBK 
maintenance of procedune that an r aaa on ably adapted to vrad 
•uch error. 

'\i) The Secretary, the Attonuj General ef any Stata, or tfaa 
inaurance commiaeiODer of any State may bring an aetkn to aqjeta 
violationa of thia aection. 

"(6) In any private action brought purauant to thia aiihaection, the 
court may award to the pr«vailing party the court casta of the aetiaB 
together with reeaonable attomeya feea. 

(6) No provision of State law or reffulatit 
stringent limitationa on controlled busuess arrangemeula ahall be 
consbved as beiiu inconsistent with thia section.**. 

(d) Section 16 of auch Act is mmimAmA to read as foUowK 

"juaiaiHcnoN op couan 

"Sbc 16, Any action pursuant to the provisions of ss ct iow 8 or 9 
may be brought in the United States district court or in any othar 
court of competent jurisdiction, for the district in whidi tbe 
property involved is located, or where the violation is allaged to 
nave occurred, within one year from the date of tbe 



the violation, except that actions brought by the Secretary, the 

Attorney General of any State, or the u '— ' — '■ — ' 

any State rosy be brought '" ' " 
occurrence of uw violaticm.". 

(e) Section 19 of such Act is amended by adding the fidlowing n 
subsection at the end thereof: 



"(cKD The Secretary may inveatigate any facta, cooditioaa, no- 

„ — ■■--■ — ly be deemed neceaaary or prq>er to aid ia 

iforcement of the D! 



ticca, or mattera that may ee deemed neceaaary or pnmer to 

the enforcement of the provisions of this Act, in pTeotaTUag of nilas 



■ettlement practices. To aid in the inv««tigationB, the SacrataiT ii 
authorized to hold such hearinga, admmiatar suefa oatha. and 
recniire by subpena tbe attendance and testimony of such w 
and production of such documents as the Secretary de« 

"(2) Any district court of the United Sutes within U 

of which an inquiry is carried on may, in the caas of 

refusal to obey a subpena of the Secretary issued under this s< 
issue an order requiring compliance therewith; and any fUtura lo 
obey such order of tbe court may be punished by such court sa a 
contempt thereof.". 

(0 The ameadmenta made by this aection shall become efbrtiva oa 
January 1, 1964. 

KATtONAL INSI'irUIS OP BUILOIND saBNca 



f adding a 



following new sentences: "In addition to the amounts authoriaad to 
be appropriated under the first sentence of thia section, there is 
autbcmied to be ^tpropriated to the Institute to cany out the 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 97 STAT. 1233 

proviBiou of thi* wction not to exceed 1250,000 for fucal year 1984. 
Any Bmount appropriated under the preceefling sentence shall be 
made available for expenditure or obligation bv the Institute only to 
the extent of an equal amount received by the Institute after the 
effective date of Uua sentence from persona or entities other than 
the Federal Government.". 



Sbc. 463. (aXl) Section 504(6) of the Solar Energy and Energy 
Conservation Bank Act is amended — 

(A) by inserting after subparagraph (G) the following new 
•ubparturaphs: 

"(H) air<oaditioning systems having better than average 
eneno' efficiency ratings; 

"(Dany residnitial energy audit;"; 

(B) by redesignating subparagraphs (fi) and (I) as subpara- 
gra^is tJ) and (K), reanectively; and 

(CI in subparagraph (K), as so redesignated in this para- 
graph— 

(i) by striking out "any residential energy audit,"; and 
(ii) by striking out "(H)" and inserting m lieu thereof 

■vy: 

(2) Section 5a4ai of the Solar Energy and Energy (Conservation 
Bank Act is amended — 

(A) by inserting after subparagraph (I) the following new 
■ubparanrapha: 

"(3) air-conditioning systems having better than average 



(B) by redoignating subparagraplis 
graphs (L) and AD, respectively; and 
[Q in subparagraph (tit), as so re 



nibparagraph (tit), as so redesignated in this para- 
grapn— 

(i) by striking out ", and any commercial energy audit,"; 

(ii) by striking out "(J)" and inserting in lieu thereof 

"(L)". 

(b) Section 50S(f) of such Act is amended by adding at the end 

thereof the following new sentence: "Each such advisory committee 

AaU roeetatthecaOof its chairperson or a majority of its members, 

and shall meet not leM than twice during each year.". 

(cXl) SecticM) SlKa) (rf' such Act is amended— 



(A) by striking out "and" at the end of parupraph (3); 

(B) fc^ striking out the period at the end afpaiagraph 
inserting in lieu thereof "j and"; s 



(O Iv T^'^'"g at the end thereof the following new paragraph: 

"(6) m the case of a reeidential building witfi 2 to 4 dwelling 

onita and an owner or tenant whose income exceeds 150 percent 

of the median area income, or in the case of a residential 

building that is available for rent and is owned by a person 

whose income exceeds 150 percent of the median area income — 

"(A) an amount equal to 20 percent of the coet of the 

residential energy conservation improvements; o 



yGoot^le 



12 use 3612. 



PUBUC LAW 98-181— NOV. 30. 1968 

(2) Section 511 of auch Act is smended by midiag at tlw wd 
thereof Ute following new mibeectiim: 

"(d) The Board may not limit the 
that majr b« provided under this ■ubtitle for the 
Ution of rMidential or commcraal energy ctMuerrinf 
on the basis of the projected amount of energy cr 
of such improvements. '. 
(cXl) Section 514(aX2) of such Act b amended 

"(2XA) the contractor who installs reeidential or e . _ 

energy conserving improvement* in a building shall, in O 

tion with such improvemcnta. warrant in writinf that tta 
owner or tenant receiving the proceeds of such loan shall (fa 
those improvements found within 1 ]rear of ■"^■"■*'*^ to to 
defective due to materials manufacture, design, or inslallatiaal 
at a minimum be entitled to obtain within a reasonabla pariad 
of time and at no charge appropriate replacement partly 
materials, or installation; and 

"(B) in the case of ener^ conserving improvMMiita twatallsd 

by an owner or tenant without the asMstanee ef a «oati«clar, 

s^h owner or tenant shall certify to the financial iustiUiliua 

that he or aha has obtained warranties as appropriato from the 

supplier fcH- the energy conserving measures:' . 

(2> Section 514(bX4) of such Act is amei 

semicolon at the end thereof the following: "unles 

energy conserving improvements are installed in a bnildinc wfaidi k 

either located in an area which ia not served br a public otilitr 

deacribed in section 211(a) of such Act or which isMcatadiB an area 

served by such a public utility but in which no list boa baan laads 

public by the pubtic utility under section 215(aX3) of such Act or br 

the Secretary of Energy". 

(3) Section 514(bX5) of such Act is amended ta'Mod aa IbllowK 

"(5HA) the contractor who installs residential or commatcial 
energy conserving improvements in a building diall, in taaam^ 
tion with such improvements, warrant in writing that ths 
owner or tenant receiving the proceeds of such loan ahall (hr 
thoae improvements found within 1 year of insUllatioa to fas 
defective due to materials manufacture, design, or iastallatkn) 
at a minimum be entitled to obtain wiUiin a reasonabla pariad 
of time and at no charge appropriate replacement partly 
materials, or installation; and 

"(B) in the caae of enersy conserving impmemanta Jnatallad 
by an owner or tenant without the assistance et a eo ato c to , 
such owner or t^iant shall certify to the finandal ina UlMU an 
that he or aha ho* obtained warrantiee as appropriato f^wn lbs 
supplier (br the energy conserving measures; . 
(a) Section 620 of such Act is amencted— 

(1) by inserting "(a)" after the section dealgnalion; and 

(2) Inr adding at the end thereof the following new aiibaaellow 
"(b) Not later than 90 d^ after the effective date of tUa aabaM- 

tion, the Board shall issue regulations that— 

"(1) permit the provision of financial sssistanra undar this 
subtitle for the purchase and installation of solar enSTgr ^^ 
tems of the active type, and the purchase and Installatfan of 
passive and active type solar apace heat 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

"(2) do not prohibit Uu use of tax-exempt financing in connec- 
tion with any purchase or inctallation of reeidential or commer- 
cial enenO' conserving improvements or solar energy eyBtams 
aasisted under this eubtitle; 

"(3) provide that a re^dential energy audit ihall not be 
required as a condition of the receipt of unandal aMiatamce by 
an owner or tenant of ■ residential building under thia eubtitle, 
accept that auch regulationa may require Mich audit with 
reapect to any auch building located in an area in which an 
audit is available under the pnrtiamia of title II or VII of the 
National Ener0 Conservation Policy Act; 

"(4KA) estaUuh ■ iw»imnm limitation on the percentage or 
amount of any flnancial aaaistance provided under this subtitle 
that may be used for administrative expenses, which limitation 
shall be 12 percent (or such higher percentage as the Secretary 
may determine to be appropriate), or |20,000, whichever 
■iDount is greater; and 

"(B) pnmda that not more than one-half of any such amount 
may be used by any State for its administrative expensea, except 
that if any State is the eole administrative entity in such State 
with respect to financial asaistance under this subtitle such 
State may use all of such amount for such expensea; 

"iS) estaUish criteria for the allocation of financial assistance 
under this subtitle among eligible financial institutions; and 

"(6) provide that aia amount of unexpended financial assist- 
ance under thia subtitle tltat is recaptured 1^ the Board shall be 
reallocated by the Board to eligible financial institutions under 
thia subtitle. . 
(fXl) Section 1971 of the Omnibus Budget Reeondliation Act of 
1981 is amended— 

(A) by striking out "such fiscal year" and inserting in lieu 
thereof "of fiscal yean 1982 and 1983"; and 

(B) by inaerUng after "SSO.DOO.OOO" the following; ", and for 
fiscal year 1984 not to exceed (35.000,000,". 

<Z)Secti(m622of the Solar Ene^y and Energy Conservation Bonk 
Act is amended — 

(A) by striking out the hyphen before paragraph (1) in subsec- 
tira (a) and all that follows throu^ the period at the end irf 
aubaection (b) and inserting in lieu thereof the following; "and 
of sotar energy systems such sums as may be necessary for fiscal 
year 1985.": and 

(B) by redesignating subsection (c) as subaection (b). 



Energy C 
Buildingi Act of 1976 is amended to read as follows: 

"authouzation or AppKoraiATioNa 

"Sec. 422. Of the fUnds authoriied by secUon 1005(1) of the 
Omnibus Budget Reconciliation Act of 1981 for energy conservation 42 USC TZTD 

for ftseal year 19S4, not less than 1190,000,000 is authorized to be "<»< 
o p pTMa i atad to carry out the weathenzation program under this 
p*rt. lliere is authoriied to be appropriated such sums as may be 
mil I asm J tor flscal year 1985 to carry out such weatherication 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 



Sue. 46S. SectkN) 106(aX3> of the Hmuing Mtd Urbu DnvlopOHnt 
Act of 1968 it amended— 

(Ubr Krlklng out "1962" and inantins in Ueu thMWif "IMI"; 



Sic. 466. <e) Section 601 of the Hotuins and Uifaan DairriofaMOt 
Act of 1970 is amended by itriking out the lecand aentenea mad 
uuertiiiK in lieu thareoT the following: "There an autboriaid to b* 
appropriated for activities under this title not to e x ceed tl9,0OO4IW 
for fiscal year 1984, and nich luma aa may be iMceaaaiy for fiacal 
year 1985, Of the amount appropriated under the pnoadiac Mn> 
teoee for fiscal year 1984, not Iom than S2.000,000 ihall be providad 
for implementation 6f a research program to be developed in cntMul- 
tatioD with public housing agendas, which program shall identic 
current problems of public housing management, specific solutioos 
to such problems, and incentivea to encourage implemetitatMMi of 
such aolutions.". 



BUKvn or KONOuic a 

1 The Secretary shall, __ 

national, regional, and local economic and houaing markat e 
tions in a manner tiiat provides data ccnnparaUe to tfa« data 
collected in such survey conducted in 1981.". 

NATIONAL HOUSINO PAKTNXaBHtPS 

Sic. 467. Section 906(aXl) of the Housing and Urban Development 
Act of 1968 is amended— 

(1) hv striking out "or" after "building" and inserting in Uev 
thereof a comma; and 

(2) by inserting after "rehabilitation" the followixig ", acquit- 
tion. and fmancing". 

■CrORT BBOASniNO ntOCRAX ckancis 

Sk. 468. The Secretary of Housing and Urban Development shall, 
not later than March 1, 1984. transmit a report to botn Housaa «t 
the Congreaa that describes— 

(1) the standards utilized by the Department of Housing and 
Urban Devel^Knent to make determinations concerning 
whether program requirements and changes to those raquito- 
ments are implemented through the use of regulations, hand- 
books, memoranda, telegrams, or other forms of formal gr 
infbrmal notioes; and 

<2) the system currently utiliied by the Department to asaura 
that changes in the operation of departmental programs that 



yGoot^le 



PUBUC LAW 9*-181— NOV. 30, 1983 97 STAT. 1237 

■ufaatantiallj aCect the eligibility, rights, or benefita of penona 
applying for or raceiving usistancc under any luch progranu 
an aubject to requirementB at notice and publication, eapedally 
thooe requirements fpedfied in mbaectiona (b) through (e) oT 
•ection 653 of title 6, United Sutea Code. 



Sac. 469. Aa aoon as practicable following the date of the enact- 



Federal Dntont Insurance Corporation, the Board of Governors of 
tlw Federal Raaenw Syatam, and the Comptroller of the Currency, 
diaU dvrelo^ a method of accurately reporting to the Coitgrees on a 
periodic bans with respect to residential mortgage delmquendee 
and feredoaurea. Each such report shall include information with 
respect to the number of residential mortgage foreclosurea, and the 
number of ais^- and ninetv-da; residential mortgage delinquende*. 
in the Nation and in each State. 



iaduded in a notice of funding availabiUty; and (2) t£ere expiree a 
Mriod of aizty calendar dan following the date of such publication, 
OBring which period the Secretary Mall fully consider any public 
comments submittad with raapect to such demonstration program. 
(b> Nothing in this section may be considered to authorise the 
conducting of any demcmatration program by the Secretary of Hous- 
ing and Urban Development 



Regiilcr. 
42 use 3! 



Sic. 471. Section 864 of the Multifamilv Mortgage Foreclosure Act 
of 1981 U amended by adding at the end thereof the following new 12 USC 3703. 

sentence: "If the Secretary forecloses on any such mortgage pursu- 
ant to nich other foreclosure procedures available, the provisions of 
section 3G7(b) may be applied at the discretion of the Secretary.". 12 USC 3T06. 

ALnmKATIVl MOaTQAOt TKANSACTIONS 

Sec 472. Section 805(a) of the Alternative Mortgage Transaction 
Pari^ Act of I9S2 is amended by inserting after "transactions" the 12 USC 3801. 

fbUowiaf "(or to any class or type of alternative mortgage 



Sbc 47S. Section 34I(d} of the Thrift Institutions Restructuring 
Act ia amended by striking out "A lender" and inserting in lieu 
tbereof Iha following: "With reapect to a real propertv loan secured 
\j a lien on residential real property contaimng leas than five 
dweUinf units, including a lien on the stock allocated to a dwelling 



yGoot^le 



97 STAT. 1238 PUBUC LAW 98-181— NOV. 30. 1983 



T OWED THi ntxAsmr AND u4uio*noM or 



Sac 474. (a) In order to provide for the manaoBment 
liquidation of the aneta, and diachar^ the Uabilitiea, 



incurred in connection with the new communities praaram Mtthor- 
i»d purauant to title IV of the Houaing and UiImb DwwInpmiBt 
Act of 1968 and title VII of the Houaing end Urbaji Di»e l og»«Bt 
Act of 1970 (bM«an«r leferrad to in thia aection m "title IST «nd 
"title VQ", reenecUvely), the liquidation of the new woimMiiiti— 
proKram ahall be carried out punuant to the pco viai cna cf law 
applicable to the revolving fund (UqM^tu ' ^-"•-'--' 



': upon the transfer by the Secretary of Housing and Uffaa* 

DBvelojMnent QMreaflM- in this section referred to as the "8mi» 

tary") of the a»ets and liabilities at the fiind aulhoriwd imdar 

12 U9C tSiB. section 717 of title VH to such ravolving fund, m rw|u^«d in tiUa I 

of the Department of Housing and Urban Development>IndspandsBt 

Anir, p. 219. Agendes Appropriation Act, 1984. The Secretarr shall report ta Um 

Report to Congress not Issi than sixty days prior to taking any Kiiaa with 

"™«'*" respect to the diapoution irf real prop ^ ■-.'--- .■--- ■-- — 

moner mortgage) which involves any n. 

B from the Department M Houaing and Urban Devdop- 



the diaposition M real proper ty (other than a purchaas 
rtgage) which involves Boy nirtner potential liabui^of or 



■nent with respect to any proper^ so tran^rred. 

(b) In carrying out thajturpoassofsubssctioM (a), all mootga in tha 
ravcdring fuitd (Uquidatuig pregrama) shall be available for necea 
•arv adminiatrative and other espenaee of servicing and tiquidatinc 
obligations guaranteed pursuant to section 408 and ■ecUoo 713 at 
42USC3902, tiUe IV and title VII, rsspMrtlvely, including oosts cf servicM (indnd- 

^^'^ ing legal SNvioes) pa rf ormed on a contract or fee basis, and to 

diachargeanyotharliability acquired or incurred in connectioa widi 
'' IT cotnmnnitiea program. Notwithstanding any other provt- 



the protection of the interaata of the revidTing fund Q 
propvms), to pay out at anj • . • - 

chai^ss in coimection with tl 



pra^ams;^ to pay out of an* moneys in sudt ftmd idl swpiwses a 
"htha a 



Act aa a result of recoveries under security, subragatiMi, or other 
rights in connection with the new communities program. 

,_, .- ._.__..... , . -•^- "tie I cJtbe Department 

tdent Agendea Appn- 
priation Jut, 1984, the Sservtary of Housing and Urban Dsnlop- 



(c) After making 
of Housing and Uiban DBvelopment-Indapendent / 



it may issue obligations to the Secretary cf the Treasory in an 

amount sufficient to enable the Seeretan of Houaing and Urban 
Development to tatisfr any guarantee made pursuant to sectioa 408 
or 71S of title IV or UUe Vn. respectively, and othsrwiss carry oat 
ths functions authoriMd by thia section. The obUgatioBS iMuad 
under thia subssction shall have aucb maturitiee and bear sudi tito 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 97 STAT. 1238 

Sacreta^ of the Treaoury u authorizad to use u a public debt 

trmnaaction tha proceada from the aale of any aecuritiea laaued under 

chapter 31 of title 31, United Statea Code, and the purpoaea for % Stat aSJ. 

whkli aecuritiea mw be laaued under aucb chapter are ectended to ^' ^^ ^"^^ '' 

include purchaaea of obligationa iwued under this aubaection. *^' 

(d) Upon the transfer required in title I of the Department of 
HouainK and Urban Development-Independent Afenciea Appropri- 

Btioa Act, 1984. each obligation iaeued by the Secratary of Hounng '*"'*■ P 219- 

and Urban Development to the Secretary of the Treaauiy purauant 

to aection 407(a) w TlTft) of tMe tV or title VII. reapecUvely. «ysC3906, 

together with any promiae to repay the principal and unpaid inter- *"' 

eat which hai accnied on each obligation, anid any other term or 

condition apedfkd by each auch obligation, ia canceled. 

(e) TiUe IV, except for aecti<ma 408, 411. 413. 414. and 416, and part i^ USC 3901 it 
B of tiUe Vn. except for aectiona 724, 725, 726. and aufaaectiona (b) ^..e^.,., 
thrwigh (e) of aection 727, are hereby repealed. Section 717 of UtJe Z,^'^ *^" " 
VH ahall remain in effect until completion of the tranafer required 42 uSC 4.SI8 
in title 1 of the* Department of Housing and Urban Develofunent- note. 
Independent Agenciea Appropriation Act, lEKt4. Tha Secretary may *2 use U36i> 
not implement the amendment to aection 214 of the Housing and "^^ 
Community Development Act of 1980, made Inr aection 329(a) of the 

Housing and Communitr Development Amendmenta of 1981, before 42 use 1136a. 

tba expiration of the one-year period following the date of the 

enactment of thla Act Any actiona taken, prior to repeal, under the *^ "^ 3^1 

authority of any of the sectiona which are repealed oy this aection ""^ 

diall coDtlnue to he valid. Nothing in this aubaection shall impair 

tlM validly oif anyguar«BteM which have been made purauant to 

title IV or title VU and any auch guaranteea ahall continue to be 42 usc 390t, 

fovemed hj the praviaiona of title IV or title VII, as api^icable. aa ^^> 

thay existed immediately before the date of the enactment of this 

Act 

Part D — SscoNnAav Moktcagi Makkkt pRoosAMa 

AMOUNT n BS OUAaANTKED UNDBK THB OOVXaNMENT NATIONAL 
MOKTOAOX ASSOCIATION HOBTOAOI-BACUD SICUBrnXS FKKmjtU 

Sac. 481. Section 306(gX2) (^ the Federal National Mortgage Asso- 
ciation Charter Act is amended to read as toUowa: 1^ "SC mi. 

"(2) Notwithstanding any other provision of law and lultject only 
to ttia abaanca of qnaUiled requaata for guaranteea, to the authori^ 
pravidad in thia aubaection, and to any nmding limitation approved 
in appropriatiim Acta, the Association ahall enter into commitments 
Uir oadi of the tbcal yeara 1984 and 1985 to issue guarantees under 
thia aubaection for each auch fiscal year in an aggregate amount of 
168,260,000.000.". 



tei 482. The commitment isaued under aection 306(b) of the 
Federal National Mortgage Association Charter Act, known as 
GNBIA commitment numbered 926-984, to purchase a mortgage 
Inaured under auch Act ahall be granted for 43 months without the 
hnporition of additional fisea beyond the initial commitment fee. 



yGoot^le 



97 STAT. 1240 PUBUC LAW 98-181— NOV. 80, 1988 

■PKIAI. ASnRANCK AND DfKBGKNCT HOKTOAOB rVKMAMK AMVT 
ANCI FUNCnONI or lia OOVKmNMKNT NAnONAL MOKRIAM 
ASSOCIATION 

Sk. 483. (a) SectiMu 305 and 813 of the FedenJ N«tioa»l Uort- 
gage AMociation Charter Act and aection 3(b) of tba Ihiwigwuj 
Hwne PurchoM AMiManee Act ^ 19T4 are hen^ rapealad. 
usL iTzse (I,) ^j^ purchaM or comtniUDent to purchaae any iM(tgic» pan» 

use 1720 ant to aection SOS or 313 of the FMleral NatioDal Hortfif* Aaaaci- 

Charter Act made befoT* the di 
' dng and diapoaition d 

ovenied hy the provi 

liat«ly briim the effoctiva data of thia MctioB. 

TITLE V— RURAL HOUfflNG 



12 use 1720. 
lT23e. 



la the "Rural HouaiDg Antand- 



Sk. 602. (a) Section 50I(bX4) of the Houaing Act of 1M9 b 
amended to read a* follows: 

"(4) For the purpoee of thia title, the temu low incona ftuniliw ar 
peraoni' and Sfen* low-incoi 
familiee and persona whoee 
levela eatablished for lower ini 
familiee by the Secretary of Houaine and I 
the United State* Houeing Act of 1937.". 

(b) Section 501(bX5) of such Act is amended to read aa fidlowK 

"(5) For the purpoee of thia title, the terms 'income' and 'adtuatid 
income' have the meanings given by sections 3(bK4) and StbXSIl 
leapectively, of the United State* Housing Act of 1937.". 

BicnoN MI 

Sk. 503. (a) Section 502 of the Housing Act of IE 
adding at the end thereof the fbllowinr 

"(d) On and after the effective date of the Rural Housing Amend- 
roenta of 1983— 

"(1) not leas than 40 per centum of the dwelling units financed 
under this aection shall be available only for occupant 1^ vaty 
low-income familiea or persons; and 

"(2) not leea tlian 30 per centum of the dwelling unite in «adi 

State financed under this aection ahall be availaUa only Ibr 

occupancy by verv low-income familiea or persona. 

"(eXl) A loan whidi may be made or insured under thia aectkn 

with reapect to housing shall be made or insured with raqwct to ■ 

manufoctured home or with reepect to a manufactured mbm and 

lot, whether such home or such home and lot ia real pro i »« Hy. 

peraonal property, or mixed real and peraonal property, if— 

"(A) the manufactured home meets the standards pwaorfbad 
puiauant to title VI of the Housing and Communis Dawdo^ 
mentActofl»T4: 

"(B) the manuwcttired home, or the manufactured beoM and 
lot, meets the installation, structural, and site r 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 97 STAT. 1241 

which would aplrijr under title n of the Natumal Hoiuing Act; li USC ITDT. 



.„. -., h (2), the numufo^ured home meets the energy conaerving 
requiremente eppliceble to boueiog other then manufactured 
houtinc financed under thk title. 
"(2) Energy eoneerving requiremente eetabliahed by the Secretary Energy 
for the purpoee of paragraph <lKQ«hall— ?^'^"' u. 

' (A) reduce the opeiating coeti for a borrower by maKJmizing requireroenu. 
the energy aavings and be coet-effective over the life of the 
manufactured htnne or the term of the loan, whichever is 
ahorter, takiiu into account variations in climate, type* of 
energy used, the coat to modify the home to meet such require- 
menta, and the estiniatad value of the energy saved over the 
tenn of the mortgage; and 

"(B) be eetabliahed ao that the increase in the annual loan 
payment resulting from the added energy conserving require- 
menta in ezcees of thoae required by the atandards prescribed 
under title VI of the Housing and Cconmunity Development Act 
of 1974 shall not exceed the projected savings in annual energy *2 USC 5401. 

A) Within 18 months from the issuance by the Secretary of Report bi 
Afrieuiture of regulations under section 50e(eX2} of the Housing Act ^^^,-„^ 
of IMS. the Secretary of Energy, in consultation with the Secretary ^'*- '"'^ 
ct Housing and Urban Development and the Secretary of Agricul- Anir. p 1240. 
ture, shall conduct a study and transmit to the Congress a report 
that compares the incrMsed construction coetB. actual annual 
energy use, and the pngected value of eneigy saved over the 
expected life of the home or the mortgage term, whichever is 
shortar. of manufactured homes which are financed under titlea 1 
and H of the National Housing Act, or under title V of the Housing !?J/^ '''"^• 
Act of 1949 and which are built according to national manufactured 42 use I47i 
bousing safety standards with other homes insured under either 
such Act. 

te) Section S2T of such Act is repealed. Repeal. 

(d) Section 60aa) of such Act is amended- « y^C H90g. 

<1) Jv inserting "iiy after the subsection designation; " "^ '*^^ 

(2) t^ striking out all after "making of the loan with interest" 
and inserting in lieu thereof a period and the following: "Hie 
Secretary may accept the personal liability of any peiaon with 
adequate repayment ability who will coeign the applicant's note 
to compensate for any deficiency in the applicant ■ repayment 
abilitv. At the borrower's option, the borrower may prepay to 
the Secretary as escrow agent, on terms and conditions pre- 
scribed by hira, such taxes, insurance, and other expenses as the 

Secretary may require in accordance with section 501 <e),"; and 42 USC 1471. 

(3) by adding at the end thereof the following new paragraph: 

"(2) The Secretary may extend the period of any loan made under Loan «i«uicm 
this section if the Secretary determines that such extension is penod. 
naceaaaiy to permit the making of such loan to any person whose 
income ooea not exceed 60 per centum of the median income for the 
area and who would otherwise be denied such loan because the 
payments required under a shorter period would exceed the finan- 
cial capacity of such person. Ilw aggregate period for which any 



yGoot^le 



PUBUC LAW 98-181— NOV. 30. 1983 



Stc. 504. The fliM and aaeood MntcncM of Mction SIHta) ot Oa 
Houaing Act of 1949 are amended to read m MiowK "ttm aecre taw 
may make a Umd, grant, or combined kMn and grant to an allgMi 
very tow-income amlicant in order to impnrw la tnodemin ■ nnl 
dwelling, to make Uie dwdling safer or mm* makttaj, «r to immm 
hazarda. The Secretar; may make a loan or graat oadw tUa 
aubaertion to the applicant to cover the coat tt any or all rapain 
improvementa, or addiliona auch aa repairing rooh^ pwrid if a^it 
ta^ waste fiacilitiea, providing a convenient and aanitary wilw 
supply, repairing or providing structural aupporta, o 
lar repairs, additions, improvements, including all ~ 
inatallatjan eoeta in obtaining central water and a< 
m»»inniim amount of a grant, a loan, or a kan 
not exceed sucb limitatitma aa the Secretary iVitm iiiiiwa to be 
a pp ropriate.". 

ncHNicAL aiavicn and »— "^"^ 

Sac. 505. SecUon 606(b) of the Housing Act of 1949 b "■f'M I9 
adding at the end thereof the following: "In cafTjiiig oat Una 
Bubaection, the Secretary may permit demonstntiaiia invoMBg 
innovative housing units and systems which do nat maat *■*■"■§ 
published standards, rulea, regulationa, or policiaa if th* H i r rs t a i T 
finds that in so dfung. the health and safMy of the popolatfaB of Oe 
area in which the demonatratioa is carried out will not be advaiMtr 
affected, except that the nagregata expenditurea for such deaMnatn- 
tjons m^ not exceed JlOSOO.r"* ' " ' ~ - - 

shall report to the Congress ai 
results of such demoostrations.". 



« nsgregata expenditurea for such deaMnatn- 
(10^,000 in any flaeal year. Tba Ba ct e Ui y 
ngreas at the cloae of ead flaeal y«ar en the 



•TANDJUUM FOX ADC9UATX ROUaOKI 

Sac. 606. (a) Section 509(a) of the Housing Act eri949 ia UMnded 
t^ adding at the end thereof the following: "The Secretary ahaU 
approve a rcaidentiel building as meeting audi atandaiA if tte 
building is constructed in accordance with (1) the mlnliiniiB 
standards prescribed by the Secretair, (Z) the minimum p nfm*J 
standards [wescribed Inr the Secretary of Houting and Urfaan Dw w 
opment for mortgages msured under title II of the National Hownng 
Act, (3) the standards contained in any of the vdtintaiT MJioBai 
model building codes, or (4) in the case <rf manufactured lw»idng. the 
standards referred to in section 502(e) of this Act To the maximuB 
extent feasible, tlw Secretary shall promote tlw use of energy aaviag 



newly const 

standards s 



_._ J practicable, be conslsteBt with the 

standards established pumiant to section 626 of the Natlosial Hooa- 

fiiuc, p. liiu. ing Act and shall incorporate the energy perfon ' *" 

developed pursuant to auch section.", 

RapMl. (b) Section 629 of such Act is repealed. 

421^ 149D1. 



yGoot^le 



91 

PUBLIC LAW 98-181— NOV. 30, 1983 97 STAT. 1243 



Sk. 507. (al Section 510(e) of such Act is amended bv adding 42 USC 14B0. 
before the semicolon at the end thereof the following: 'and the 
authority of the Secretary under this paragraph includes the 
authority to transfer section 502 inventory properties for use aa *2 USC 1472. 
rental or cooperative units under section 515 with mortgages con- 42 USC 1486. 
toining repayment terms with up to fifty years to private nonprofit 
organizations or public bodies. Such a transfer may be made even 
whiere rental assistance may be reauired so long as the authority to 
provids such aaaistanca is available afler tailing into account the 
requirements of section 521(dXl). Where the Secretary determines Poit. p. 1249. 
the transfer will contribute to the provision of housing for very low- 
income persons and families, the transfer may be maife at the lesser 
of the appraised value or the Farmers Home Adminstration's 
inveatment". 

(b) Section 510 of such Act is amended by redesignating subsection 4Z USC 1480. 
(j> as subsection (U and inserting alter subsection (i) the following 
□aw subsection; 

"()) utilize the services of fee inspectors and fee appraisers to 
expedite the processing of applications for loans and grants 
under this tit)e. which services shall be utilized in any case in 
which a county or district ofTice is unable to expeditiously 
procees such loon and grant applications, and to include the cost 
of such services in the amount of such loans and grants; and". 



n511 of the Housing Act of 



Smc. 509. Section 512 of the Housing Act of 1949 ia repealed. 

DBTKUHNATION OF NCZD FOK HOUSING UNDER BXTTIONS 514 AND SIB 

Sbc 510. Section 514 of the Housing Act of 1949 ia emended by 
adding the following new subsection at the end thereof: 

"(h) In making available assistance in any area under this section 
or section 516, the Secretary shall — 

"(1) in determining the need for the assistance, take into 
conaideratioii the housing needs only of domestic farm labor, 
including migrant farmworkers, in the area; and 

"(2) in detMmining whether to provide such assistance, make 
such determination without regard to the extent or nature of 
other housing needs in the area. . 



"Sac I>13. (a). The Secretary may insure and guarantee loans 
under this title during Tiscal years 1984 and 1985 in an aggregate 
amount not to exceed such sums as may be approved in an appropri- 



yGoot^le 



97 STAT. 1244 PUBUC LAW 98-181— NOV. 30, 1983 

"(b) There are BUthoriiad to be appn^riated for tbcal Toara 1W4 
and 1985— 

"(1) Buch aumt as may be neceMary for gnnts puiauant to 
42 use 14T4. BOCtion 5M; 

"(2) Huch sums aa may be nectwaiTi for the pnrpoaw of aartka 
42 use 14T9. e09(c); 

"(3) Huch aums aa may be neceaaaiy to meat pa ym a u ta m 
notes or other obligationa issued by the Sten^MXj OBOar aiiftiwi 
42 use 1481 511 aqua) to (A) the aggregate of the contributkiaa Bwda by tfa* 

Secretat; in the form or credits on principal due oa loana Balk 
12 use 14T3 punuant to oection 503. and (B) the intareat diM aa a aimilar 

sum repreaented by note* or other obIisatia«ia twued b; the 
Secretary: 
"(4) Budi sums as may be neceaaaiy for Rnaitcial aaaiBtuca 



\2 use H37f. 



"(5) such-sums aa may be necewary for the porpoaaa of MCtka 
23; 
"(6) such luroa aa may be neo 



12 use ITiSz. Housing Act and section S of the Unit«d SUtea Hooafnc Act of 

JTl,^-^- 1937. 

'""' "(c) The Secretary may enter into rantal aaaiatanca matrada 

aggregating such auma aa may be approved in appropriatioB Ada 
under section 521(aX2XA) during fiaca] yean 1984 and 1986.". 

(b) Section 515(bK5) of such Act m amended Irr ^-^•- - 
"November 30, 1983" and inserting in lieu tharaof H 
1985". 

(c) Section 517(aXl} of auch Act is amended br atriUiic out 
"November 30, 1983" and inaerting in lieu thereof '"Septambtt- SO, 
1985", 

(d) Section 523(0 of auch Act is amended— 

(1) by striking out the first sentence; and 

(2) by atriking out "November 30, 1983" and iiissiUni fat Uan 
thereof "September 30, 1985". 

(e) Section 523(g) of auch Act ia amended— 
(1) by striking out "fiacal ^eor 1982" in the ' 



SECTION SIS AHBNDIlCm 

Sac. 512. (a) SecUon 515 of the Housing Act of 1949 la ai 
adding at the end thereof the following: 

"(g) The Secretary ahall limit increasea in renta on or aflar tfa* 
date of enactment of this subaection for newly conatmctad <r ab^ 
stantially rehabilitated prcjecta aawif^iH undN thia tactton la the 
leaser of the actual operating coat increaaaa incurred or tba amoBBl 
of operating coat increase* incurred with reapact to raoqMraUa 
rental dwelling unita of various aiaea and Qrpea la tba iaBM m aita t 
area which ara suitable for occupancy by families and pafMM 
aasisted under this aectiim. Where no comparaUe dwdUng units 
exist in the same market area, the Secretary shall have autheri^ to 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

Bpprove such increaBCE in accordance with the best available data 
regarding operating cost increases in rental dwelling units. 

'(h) Alter approving a project involving newly constructed or 
substantially rehabilitated units under this section, the Secretary 
shall limit coat increases to thoee approved by the Secretary. The 
Sec:retary may approve thoee increases only Tor unforeseen factors 
beyond Uie owner s control, design changes required by the Secre- 
tary or the local government, or changes in Tman^ng approved by 
the Secretary. 

"(i) For the purpose of achieving the lowest cost in providing units 
in newly constructed projects assisted under this section, the Secre- 
tary shall give a preference in entering into contracts under this 
section for projects which are to be located on specific tracts of land 
provided by States, units of local government, or others if the 
Secretary determines that the tract of land is suitable for such 
housing, and that alTording such preference will be cost elective. 
"(j) The Secretary shall assure that management fees are not 
excessive when a project developed under this section is managed by 
the developer or an affiliate of the developer. 

"(k) For purposes of determining the market feasibility of any 
project to be assisted under this section— 

"(1) in the case of any applicant whose project is expected to 
utilise rental assistance payments imder section 521, the Secre- 
tary shall only require such applicant to demonstrate that a 
market exists for persons and famiiiee eligible for such rental 
aasiatance payments; and 

"(2) in tne case of any applicant whose project is expected 
to utilize any assistance under a program of a State, or political 
BubdiviMon thereof, that is similar to such assistance payments 
under section 621, the Secretary shall only require such appli- 
cant to demonstrate that— 

"(A) a market exists for persons and families eligible for 
such program of assistance; 

"(Bl such program of assistance will provide rental assist- 
ance for a period of not less than five years, and for the 
term of the loan remaining afler the period of sucb assist- 
ance, that an adequate rental market exists for the project 
without such assistance; and 

"(C) during the te'm of such rental assistance contracts, 

such State or political subdivision shall make available the 

amounts required for such rental assistance not less than 

annually. 

"(I) The Secretary shall establish standards for bousing and 

related facilitiee rehabilitated or repaired with amounts received 

under a loan made or insured under this section. Standards estab- 

Ushed by the Secretary under this subeection shall provide that 

except for substantial rehabilitation the particular items or systems 



repaired or rehabilitated n 



appropriate levels of quality or 

^ camparaoie lo inose levels prescribed by the Secretary 

of Housing and Urban Development for rehabilitation, but shall not 
i«quire that such items or syetems or the remainder of the property 
■nMt the standards which are applicable to new construction. The 
Seovtai; shall ensure that standards prescribed under this subsec- 
tiofi pnrnde decent, safe, and sanitary housing and related facilities. 
"(m) lie Secretary mav not deny assistance under this section or 
section ^I on the basis tliat the project involved is to be located on 



yGoot^le 



97 STAT. 1246 



PUBUC LAW 98-181— NOV. 30, 1988 



42 use 14900. 



42 use U 

42 use 1' 



"(n) Tha Sacretary nuty not (1) deny bmuUiim imdn' thii wction 
on Uw Imbu that rantal aaaiatanc* paymenta uodBr aectkn GZl loaj 
be raquirad unleaa the authority to provide nich —rtttanca ■■ not 
Bvoil^le; or (2) promulsate any rasulatiiHi that wtwld ha«» tha 
affect of denjriiig occupancy to alujbla penona on tha haaia that auA 
peraoDi require rental aBiataace pajrmanta uodar aacticm 621. 

"(oXI) To the extent Baatstance ja available under wteUtm ttlOOODi 
not mora than 25 per centum of the dwelling unita wUch ««• 
available for occupancy under this section prior to tha date of 
enactment of thia lubaection, and which will be laaaad oo or altar 
auch effective date shall be available for leaains by knr '""™'^ 
Bona and (amiliaa other than very low-incmna pmona aad 






"(Z) To the extent aaustance ia available under aactkn StlCaX&b 
not more than 5 per centum of the dwelling unita which baoBna 
available for occupancy under thia tection on or after tbe data <f 
enactment of thia aubaection shall be available for Itwrlng taj low 
income peraona and familiea other than very low^inooaia perMua 
and families. 

"(3) Unita in projects financed under this aaction wfaidi ♦'fiitt 
available for occupancy after tlie date of enactment of thia anhaae 
tion ahoU not be available for occupann by penons and fiiniiltai 
other than very low-income penona and Nuuliea if the autlMri^ to 
provide aaaiatance for auch peraona ia available. 

"(p) In determining tbe income of a penon or fomily oocapjrfaig 

houaing financed under thia section, the Secretary ah" •>---•- 

value of that pereon'a or family's aosets in the a 
Secretary of Houaing and Uiban Development o 
for the purpoae of the United SUtee Houaing Act of ISSI.". 

<b) Section SlG(b) of such Act is amended— 

(1) by striking out "and"at theendofclauaa(5^ 

(2) by striking out the period at the end of dauae (6) aad 
inserting in lieu thereof "; and"; and 

(3) by adding at the end ti>ereof the following: 

"(7) loana may be made to owners irtio are othervriaa ■HgiMt 
under this section to purchase and con v ert Bingl»4amily rait 
dencee to rental units of two or more dwellings. ". 

(c) Section SIS of such Act is amended — 

(1) by striking out aubaection <aK2^ 

(2) l^ redeaignating subaectiona (aX3) and <aX4) oa atibaactfcwa 
(aX2) and (aXS). reapecUvely; 

(3) by striking out aubaection (bMSY, and 

(4) by redeaignating subaectiona (bXS), (bX4). (bXS), (bXti. and 
a>X7) as subaectiona (bK2). (bXS), (bX4), (bX6). and (bXSK 
reepectively. 

(d) Section &16(c} of such Act is amended by adding at tfaa aal 
thereof the following: "A loan may be made or insurad undv 
aubaection (a) or (b) with respect to detached units, including ttwn 
on scattered sitea, for cooperative housing.". 

(e) Section SlKdXl) of such Act is amended by inaerting baAira tha 
firat semicolon the following ", and such term also means tnawihc- 
tured home rental parks where either the lota or both tha lota and 
the homea are available for uae by occupants «ligU>le under tUa 



yGoot^le 



PUBUC LAW 9&-181— NOV. i 



FARM LABOB HOOTINO 



Skc. 513. SMtion 516 of th« Hotuing Act of 1949 is amendad by 
■dduigat the end thereof the following subsection: 

"(Ullie Secretary shall utilize not more than 10 per centum of the 
•mouota available for any flacal year for ourpoees of this section for 
financial aatietance to eligible private and public nonprofit agencies 
to eim>urage the development of domestic and migrant farm labor 
houaing prtijecta under this title.". 



Sac 514. (a) Section 517 of the Mousing Act of 1949 is amended— 

(1) bj striking out all after "insured" in subsection <s) and 
inserting in lieu thereof a period and the following: "The 
amount of such a loan to a low income person or family shall 
not exceed the amount necessary to provide adequate housing 
which is modest in size, design, and ccet (as dett.-rmined by the 
Secretary)."; and 

(2) by striJdng out "(bX4}" in subsection (h) and inserting in 
lieu thereof "(bXS)". 

(b) Section GlTti) of such Act is amended— 

(1) by striking cut "; and" at the end of paragraph (5) and 
inserting in lieu thereof a period; and 

(2) by striking out paragraph (6). 

(c) Section 5I7(o) of audi Act is repealed. 

(d) Section 617 of such Act is amended by adding at the end 
thereof the foUowiiig: 

"(o) Hw Secretary shall promulgate rules which encourage the 
rehabilitation or purchase of existing buildings for the purpoae of 
jMwiding housing which ia economical in cost and operation.". 

nsriNiTiON or kusal asea 

Sk. 516. Section 620 of the Housing Act of 1949 is amended by 
adding at the end thereof the following new sentence; "For purpoaea 
of thia title, any area classified as 'rural' or a 'rural area' prior to 
the receipt of data from or after the 1980 decennial census and 
datonnined not to be 'rural' or a 'rural area' as a result of euch data 
ahall continue to be so classified through the end of Tiscal year 1984, 
if NCb area has a population in excess of 10,000 but not in excess of 
20,000.". 

»"*"" HousiNO roa nii minu.v amd HANDicAPFcn 

&c 516. Section 621(aX2) of the Houring Act of 1949 U amended 
bgr adding the following new subparagraph at the end thereof 



'XBi In order to asaiat elderty or haiu&capped persons or families 



iriko elect to live in a shared nousing arrangement in which they 
benefit aa « result of iharing the facilitiee of a dwelling with others 
in a manner that effectivev and efficiently meeta uieir housing 
needs asd thereliT reduces their coat of housing, the Secretary shall 
pannit rental assistance to be used by such pereons or families if the 
ahared houain^ arrangement is in a aingle-family dwelling. For the 
— — "* *»"- -..».—-—"». the Secretary shuill prescribe mini- 
> assure decent, safe, and sanitary 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 



RENTAI, AMISTANCI TCNANT CONimiaVTlON 

Sk. 517. (a) SecUon SZKaXZXA) of the Hoiuing Act ot 1»49 ii 
amended by atriking out the last two Mntencc*. 

(b) Section 521(a) of luch Act is amended by adding at tha end 
thereof the followinr 

"(SNA) In the case of loana under aectiona 514 and 615 ajlfwiwirf 
prior to the effective date of thi* paragraph with raapAet to wliicfa 
rental awistance ii provided, the rent for tenant* recaivinc Micfa 



monthly adjusted income, (ii) 10 per centum of n; 

(iii) if tne person or family is receiving pavmenta for weUan 

once from a public agency, the portion of such payments whidi is 

spedfieally designated by such agency to meet the penoa'a tm 

family'! houaing casta. 

"(B) In the caae of a section 515 loan approved inior to the 
effective date of this paragraph with respect to i^idi i 
credit! are provided, the tenant's rent shall not exceed the 
of(i)30percentumof monthly adjusted income, (ii) 10 ^ oenram cc 
monthly income, or (iii) if the person or family is receivuw pajawBta 
for welfare assistance from a public agency, the portion of Midi 
payments which is specirically designated by such agso^ to aioet 
the person's or family's housing coats, or, where no rsntal ■ wist Mil a 
authority is available, the rent level established on a tinaisftf ■ 1 par 
centum interest rate on debt service. 

"(C) No rent for a unit financed under lectioo 614 or 61S abatl bo 
increased as a result of this subaection or other provisian at Pkdoral 
law or Federal regulation by more than ID per centum in ai^ 
twelve-month period, unless the increase above 10 per contum m 
attributable to increases in income which are tmrelatad to thte 
subsection or other law, or regulation. 

"(4) In the case of a loan with respect to the puicbaaa at m 
manufactured home with respect to which rental r"""*r~^ it pro- 
vided, the monthly pa3'ment lor principal and interest on the manu- 
factured home and for lot rental and utilities ihall not in r will tho 
highest of (A) 3D per centum of monthly adjusted income, <B) 10 par 
centum of monthly income, or (Cl if the person or family is focoiviBS 
payments for welfare assistance from a public agency, the portkn or 
such payments which is specifically designated by such agency to 
meet the person's or family B housing costs.". 

(c) Section 521(aX2XA) of such Act is amended by striking out "25 
per centum of income." and inserting in lieu thereof "the hi^ieat 0^ 
(i) 30 per centum of monthly adjusted income, (ii) ID par cantun 0^ 
monthly income; or (iii) if the person or family is receivit^ paymenta 
for welfare assistance from a public agency, the portion of sucii 
psjrments which ia specifically designated by such agency to meat 
the person's or family'! housing costs. Any rent or contributiao of 
any recipient shall not increase as a result of this nction or aaj 
other provision of Federal law or regulation by more than 10 par 
centum during any twelve-month period, unices the increaoe abovo 
I€ per centum is attributable to increasea in income which are 
unrelated to this subsection or other law or regulation.". 

(d) Section 530 of such Act is amended by !triklng out "25" and 
inserting in lieu thereof "30". 



yGoot^le 



PUBLIC LAW 98-181-NOV. 30, 1983 97 STAT. 1249 

(e) Section 621 of auch Act is amended by adding at the end 42 USC 1490a. 
thereof the following: 

"(dNlXA) In entering into contracts for assistance under this Cmtracu. 
section and utilizing rental assistance authority which becomes 
available, the Secretary shall first assure that expiring contracts are 
extended for thoae unita occupied by persons and families of low 
income, and that additional asaistaiice is used where necessary to 
provide the full amount authorized pursuant to existing contracts. 

"CB) Remaining funds shall be used for contracts which assist very 
low-income persons and families occupying projects receiving com- 
mitments under aection 514, 515, or 516 after fiscal year 1983, except 42 USC 
that up to 5 per centum of the units assisted may be occupied by 14S4-1486. 
persons and families of low income, 

"(O To the extent any funds are available after providing assist- 
ance in accordance with subparagraphs (A) and (B), the Secretary 
shall provide additional assistance to existing projects which would 
become occupied and affordable by very low-income persons and 
families, except that up to 5 per centum of the units assisted may be 
oiimpied by persons and families of low income. 

"(2) The Secretary shall transfer rental assistance contract Tranafer 
authority under this section from projects where such authority is aulhonty. 
unused after initial rentup and not needed because of a lack of 
eligible tenants in the area to projects where such authority is 

"(e) Any rent or contribution of any recipient shall not increase as 
a result of this section, any amendment thereto, or any other 
provision of Federal law or regulation by more than 10 per centum 
during any twelve-month period, unless the increase above 10 per 
centum is attributable to increases in income which are unrelated to 
this subsection or other law or regulation.". 

(0 The amendments made by this section shall take effect six Eflective dale. 
months after the date of enactment of this Act, or upon the earlier *^^ iiiOa 
promulgation of ttsulstionB implementing this section by the " 



Sic. 518. (a) The last sentence of section 5Z5(b) of the Housing Act 42 USC H»Oe. 
of 1949 is amended by striking out all after "sooner" and inserting 
in lieu thereof a period, 

Q>) Section E25(c) of such Act is repealed. 



c SU, (a) Section 526 of the Housing Act of 1949 is amended— *i USC UMf. 
<1) t^ striking out "in his discretion" in mfaoection (a); and 
(2) 1^ striking out "in his discretion" in subsection (c). 



PHA INSURANCS 



"Sk. 631. The SecreUi 



iry is 
iUrb 



Secretary vt Housing and Urban Development to recammend insur- 



n agent of the 42 USC 1490k. 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 



P APPUCATIONS 



"Sbc 532. (a) The Secretaiy shall, in making assistance available 

under this title, give a priority to applications submittsd by — 

"(I) persons and families that have the gna.U0t bouaug 

~e needs because of their low income and tbeir resading 



inadequate dwell inKs; 

ippfying fi ... 
ind families; and 



"<2) appticanta applying for assistance for prcgecto that wiU 



"(3) applicants residing in areas which ai« the moat rural io 

character. 

"fl>) In making available the assistance authorized I7 aectioa 513 

and section S21(a) with respect to projects involving inaured and 

guaranteed loons and interest credits and rental asrirtante pH- 

ments, the Secretary shall process and approve requeata fi>r audi 

In a manner that provides for a preliminary ia»si»iliiMi 

s at the time of initial approval of the project.". 



"Sac. 533. (a> The purpose of this section ia to authoriaa tb» 
Secretary to make grants to eligible grantees includiDC privale 
nonprofit orffanizations, Indian tribes, general units of local govtm- 
ment, counties, States, and consortia of other eligible gnuteea, in 
order to— 

"(1) rehabilitale single family housing in rural areas which ii 

owned by low- and very low-income persona and familisi^ and 

"(2) rehabilitate rental properties or cot^erativa houring 

which has a membership resale structure that enablea tbt 

cooperative to maintain aiTordability for peiaons of low incooM 

in rural areas serving low- and very low-income nccupantt. 

The Secretary may also provide assistance payments as provided bf 

section 8(0) of the United Stales Housing Act of 19S7 npMi the 

request of grantees in order to minimize the displacemmt of vary 

low-income tenants residing in units rehabilitated with awiatance 

under this section. 

"(b) Rehabilitation programs assisted under this sectioa ihall— 

"(1) be used to provide loans or grants to owners of aiogle 

family housing in order to cover the cost at repaira Uid 

improvements; 

(2) be used to provide interest reduction payment; 
"(3) be used to provide loans or grants to owners at rental 
housing, except that rental rehabilitation assistance provided 
under this subsection for any structure shall not sa c aad 7S par 



yGoot^le 



PUBLIC LAW 98-181— NOV. I 



Gvntiun oT the tots] costs associated with the rehsbilitatioD of 
that (tmctur^ 

"(4) be used to provide other comparable assistance that the 
SecretaT7 deems appropriate to carry out the purpose of this 
section, designed to reduce the costs of such repair and rehabih- 
tation in order to moke such housing affordBOle by persons of 
low income and, to the extent feasible, by persons and families 
whose incomes do not esceed 50 per centum of the area median 
income: 

"(5) benefit liiw- and very low-income persona and families in 
rural areas, without causing the displacement of current resi- 
dents; and 

"(6) raise health and safety conditions to meet those specified 

in section 509(a). 

"(cXl) The Secretan shall allocate rehabilitation grant fbnds for 

use in each State on the basis of a formula contained in a regulation 

preacribed by the Secretary using the average of the ratios 

"(A) the population of the rural areas in that State and the 
population of the rural areas of all States; 

"(B) the extent of poverty in the rural areas in that State and 

the extent of poverty in the rural areas of all States; and 

"(C) the extent of substandard housing in the rural areas of 

that State and th« extent of substandard housing in the rural 

areas of all Sutes. 

Any funds which are allocated to a State but uncommitted to 

grantees will be transferred to the State ofTice of the Farmers Home 

Administration in a timely manner and be used for authorised 

rehabilitation activities under section 504. 

"(2) Unless there is only ons eligible grantee in a State, a single 
grantee may not receive more than GO per centum of a State's 
allocation. 

"(dXl) Eligible grantees may submit a statement of activity to the 
Secretaiy at the time specified by the program administrator, con- 
taining a description of its proposed rehabilitation program. The 
Statement shall consiat of the activities each entity proposes to 
undertake for the fiscal year, and the projected progress in carrying 
out thoae activitiss. Ths statement of activities shall be made avail- 
able to the public for comment. 

"(2) In preparioft cuch statement, the grantee shall consult with 
and consioer the views of appropriate local officials. 

"<S) Tlie Secretary shall evaluate the merits of each statement on 
the basis 4it such criteria as the Secretary shall prescribe, including 



"(A) to which the repair and rehabilitation i 
assist persons of low income who lack adequate shelter, with 
priori^ given to applications assisting the maximum number of 
persons and fkmiliss whcss incomss do not exceed 50 per 
centum of the area median income; 

"(B) to which ths repair and rehabilitation activities include 
the participation of c^her public or private organizations in 
providing assistance, in addition to the assistance provided 
under this section, m order to lower the costs of such activities 
or provide for ths leveraging of available funds to supplement 
tfas rural bousing preservation grant program; 



yGoot^le 



PUBUC LAW 98-181— NOV. M, 1988 

"(O to which such Bctivities wUl be u 
having populations below 10,000 or in remote {Ntrto of other 
rural ateaa; 
"(D) to which the repair and rehabilitation MiWltiaa OtMj be 

expected to result in achieving the greateat degree oT — 

improvement for the least coat per unit or dwelung; 

(E) to which the program would minimiw djq. , 

"(F) to which the program would alleviate o v e rcr owding in 
rural reeidencea inhabited by low- and very low-inoonM ponoo* 
and families; 

"(G) to wliich the program would minimise the nae of grant 
funda for administrative purpoeee; and 

"(H) to which the owner agrees to meet the requimnent of 
■ubeection (eXIXBXiv) for a period longer than 6 yeum; 
and ihall aBsess the demonstrated capacity of the grantae to carry 
out theprogram as well aa the Tinancial feaaibility at the procrain. 
"(4) The amount of assistance provided under this ■ectjun with 
reapect to any housing shall be the least amount that the Secretary 
determines is necessary to provide, through the repair and triiafaili- 
tation of such housing, decent housing of modaat dwign that il 
affordable for peraons of low income, 

"(eXl) Assistance under this section may be provided with respect 
to rental or cooperative housing only if— 

"(A) the owner has entered into such agreeoMnta irith the 
Secretary as may be necessary to assure compUancs with tbt 
requirements of this section, to assure the flnancial tesibili^of 
such housing, and to carry out the other proviaiena of this 

"(B) the owner agrees— 

"(i) to pass on to the tanants any reduction in the dabt 
service payments resulting from the sssiitanw pravided 
under this section; 

"(ii) not to convert the units to condominium owuMsh^ 
(or in the case of a cooperative, to condMuiitiiim ownarahip 
or any form of cooperative ownership not eligfUa Ear mmitb- 
ance under this section); 

"(iii) not refuse to rent a dwelling unit in tfaa structun lo 
a family solely because the family is receiving or is «iija«l« 
to receive assistance under any Federal, ^ta, or lottl 
bouaing assistance program; and 

"(iv) that the units repaired and rehabilitated with sudi 
assistance will be occupied, or available for oecupsn^, bj 
persons of low income; 
during the 5-year period beginning on the date on which the 
units in the housing ere avaiJahle for occupancy; 

"(C) the unit of general local government or nonprofit oiiani- 
ration that receives the assistance certifies to the ■atiatactiaa of 
the Secretary that the assistance will be made avaUable in 
conformity with Public Law 88-352 and Public Law 90-8U; 
"(D) the owner agrees to enter into and allude by w ri tt s n 
leases with the tenants, which leases shall provide that tanaats 
may be evicted only for good cause; and 

' (E) the unit of general local government or nonpront oinuu- 
sation will agree to supervise repair* and rehabUitatioa siia will 
agree to have a disinterested party inspect such repain and 
rehabilitation. 



yGoot^le 



PUBLIC LAW 98-181— NOV. 30, 1983 97 STAT. 1253 

"(2) Assistance under this section provided with respect to any 
housing other than rental or cooperative housing may be provided 
only if the owner complies with the requirements set forth in 
subparagraph <E) of paragraph (1| and any other requirements 
established by the Secretary to carry out the purpose of this section. 

"(3NAI The Secretary shall provide that if the owner or his or her 
successors in interest fail U) carry out the agreements described in 
subparagraphs (A) and (B) of paragraph (1) during the applicable 
period, the owner or his or her successors in interest shall make a 
payment to the Secretary of an amount that equals the total amount 
of assistance provided under this section with respect to such hous- 
ing, plus interest thereon (without compounding), for each year and 
any fraction thereof that the assistance was outstanding, at a rate 
determined by the Secretary taking into account the average yield 
on outstanding marketable long-term obligations of the United 
States during tne month preceding the date on which the assistance 
was made available. 

"IB) Notwithstanding any other provision of law, any assistance 
provided under this section shall constitute a debt, which is payable 
in the case of any failure to carry out the agreements described in 
subparagraphs (A), (B), and (C) of paragraph ID, and shall be secured 
by the security instruments provided by the owner to the Secretary. 

"(fi The Secretary shall provide for such advance payments of Advance 
assistance under this section as the Secretary determines is neces- S^Sraw 
sai7 to effectively carry out the provisions of this section. paymen 

'(g) The Secretary shall, at least on an annual basis, make such Review and 
review and audits as may be necessary or appropriate to determine "'"^^ 
whether the grantee has carried out its activities in a timely 
manner and in accordance with the requirements of this section, the 
degree to which the activities assisted benefitted persons of low 
income and very low-income who lacked adequate housing, and 
whether the grantee has a continuing capacity to carry out the 
activities in a timely manner. The Secretary may adjust, reduce, or 
withdraw resources made available to grantees receiving assistance 
under this section, or take other action as appropriate in accordance 
with the findings of these reviews and audits. Any amounts which 
became available as a result of actions under this subsection shall be 
reallocated in the year in which they become available to such 
grantee or grantees as the Secretary may determine. 

"(h) The Secretary is authorized to prescribe such rules and 
regulations and make such delegations of authority as he deems 
necessary to carry out this section within 90 days after the date of 
enactment of this section. 

"li) The Secretary shall establish procedures which support Procedures 
national historic preservation objectives and which assure that, if f.^EJJ'v'"^ 
any rehabilitation proposed to be assisted under this section would prHcrvBtion. 
affect property that is included or is eligible for inclusion on the 
National Register of Historic Places, such activity shall not be 
undertaken unless (II it will reasonably meet the standards for 
rehabilitation issued by the Secretary of the Interior and the appro- 
priate State historic preservation officer is afforded the opportunity 
to comment on the specific rehabilitation plan, or (2) the Advisory 
Council on Historic Preservation is afforded an opportunity to com- 
ment <m CBsea for which the recipient of assistance, in consultation 
with the State historic preservation officer, determines that the 
propooed rehabilitation activity cannot reasonably meet such stand- 
■irds or would adversely afTect historic property as defined therein. 



yGoot^le 



I PUBLIC LAW 98-181-NOV. 30. 1988 

"(j) Not later than 180 dayi after the cloee of aach fltcal Tear in 
which asaurtonce under thia MCtion ia furnished, the Seerataiy abatl 
■ubmtt to the Congreea a report which shall contain — 

"(1) a deecription of the progreM made in aceomplMiing ttw 
objectives of this aection; and 

(2) a summary of the use of such funds duiinf the praeading 

year. 

Hie Secretary shall require granteee under this aectioD to aubmtt to 

him such reports, and other information as may be iMC— aiy ia 

order for the Secretary to make the report required by thk 



maCKUANBOUB 



PubLicstion in "Sic, 534. (a) Notwithstanding any other proviaion tt \tm, no luk 

Federal ^^ regulation puieuant to this title may become eftacUve iinlMi it 

mJSc'^Uson **** '^'^ ^^'^ published for public comment in the Fedanl SagiMar 

for at least 60 days, and published in final form for at laaat 80 daya. 
Traiumitul u "(b) The Secretary shall transmit to the chairman and rmnkinf 

ixiBSrvmwiti Member of the Committee on Banking, Housing, and Urban Afhin 

cDmimtiees ^ q^ Senate and the Committee on Banking, Finance and Uifean 

AfEairt of the House, all fvles and regulationsat least 16 dayabeAiN 

they are sent to the Federal Register for purpoaee of subascttoB UL 
"(c) Tht proviaiona of this aection shall not apply to a nila or 

regulation which the Secretary certifies is issued on an ai 



42 use I490O. 



taanoart m Appaovju. or housinc tavovnaotn amono 



"Sac. SSS-TheSecretaryof Agriculture, the Secretanr of HouaiBC 
and Urban Development, and the Administrator of Vatemis' A^ 
&ura diall each accept an administrative approval ef say booring 
aubdiviaion made by any of the others so that ~~* *-*-- -*--- 
January 1, 19S4, there is total reciprocity for hou< 
approvals among the agendea which they head.". 



mOlTTtTLB 



Fast A — GxrcaT-litPoaT Bank Act Ah DnunNTB 

ITRNBION or Tin npOKT-iMroBT bank act 

8k. 611. Section 8 of the Export-Import Bank Act of 1946 (U 
U.S.C. 686f) is amended by striking out "November 18, 1983" »bA 
inaerting in lieu therecJ "September 30, 1986". 



yGoot^le 



108 

PUBLIC LAW 98-181— NOV. 30, 1983 



Sk. 612. (e) The second sentence of section 2(bXlKA) of the 
Export-Import Bank Act of 1945 (12 U.S.C. GSSOiXlHA)) is amended— 

(1) by inserting "in all its programs" after "objective"; and 

(2) by inserting "fully" after "which are". 

(b) The (irst sentence of section 2(bXlXB) of such Act (12 U.S.C. 
635(bXlKB)) U amended by striking out "It is" and all that follows 
through "exporta of other countries;" and inserting in lieu thereof 
the following: "It ia further the policy of the United States that 
toans made by the Bank in all its programs shall bear interest at 
rates determined by the Board of Directors, consistent with the 
Bank's mandate to support United States exports at rates and on 
terms and conditions which are fully competitive with exports of 
other countries, and consistent with international agreements. For 
the purpose of the preceding sentence, rates and terms and condi- 
tions Deed not be equivalent to those offered by foreign countries. 
but should be established so that the effect of such rates, terms, and 
conditions for all the Bank's programs, including those for small 
businesses and for medium-term fmancing, will be to neutralize the 
efiect of such foreign credit on intern-itional sales competition. The 
Bank shall consider its average cost of money as one factor in its 
determination of interest rates, where such consideration does not 
impair the Bank's primary function of expanding United States 
exports through fully competitive financing. It is also the policy of 
the United States". 

(c) The fust sentence of section 2(bXlXB) of such Act (12 U.S.C. 
635(bXlXB)), as in effect on the day before the date of the enactment 
of this title, is amended by inserting "export trading companies," 
after "independent export firms,". 



Sbc. 613. Section 3(d) of the Export-Import Bank Act of 194S (12 
U.S.C. 635a(d)) ia amended to read as follows^ 

"(dXlKA) There is established an Advisory Committee to consist of 
twelve members who shall be appointed by the Board of Directors on 
the recommendation of the President of the Bank, 

"(B) Such members shall be broadly representative of production, 
commerce, finance, agriculture, labor, services, and State 
government. 

"12) Not lees than three members appointed to the AdviB0[7 
Committee shall be representative of the small business community. 

"(3) The Advisory Committee shall meet at least once each 

"(4) The Advisory Committee shall advise the Bank on its pro- 
erams, and shall submit, with the report specified in section 
2(bKlXA) of this Act. its own comments to the Congress on the 
extent to which the Bank is meeting its mandate to provide competi- 
tive financing to expand United States exports, and any suggestions 
for improvements in this regard.". 



yGoot^le 



56 PUBUC LAW 98-181— NOV. 80. 1988 

(1) by redesignating the flnt sentence through the Mventh 
■entence of such section as psragrairtis (1) through (T), 
respectively: 

(2) in the Tifth paragraph of such gection, m m indfitiiatiiil 
by paragraph (1). by striking out 'Terms of the dinctocv shsU 
be at the pleasure of the President of the Unitad SUtM, and 
the" and inserting in heu thereof "The"; and 

(3) by adding at the end thereof the following 

"(SKA) the terms of the directors, including the PrcaidMit uid the 
First Vice President of the Bank, appointed under this sactioD shall 
be four years, except that — 

"(i) during their terms of ofTice, the dinctois Bh«U aem at 
the pleasure of the President of the United States; 

"(li) the term of any director appointed after tha date of 
enactment of this paragraph to serve before January 20, 198S, 
shall expire on January 20, 1985; 

"(iii) of the directors first appointed to serve beginnina on or 
after January 21, 1965, two directors {other than the F 
and First Vice President of the Bank) shall be mmmavaa lor 
terms of two years, as designated by the President Mthe United 
States at the time of their appointment; and 

"(iv) any director first appointed to serve for a term begiaaiag 

on any date after Januai^ 21, 1985, shall serve only nr the 

remainder of the period for which such director would bmn 

been appointed if such director's term had begun on January 21, 

1985, If such term would have expired before the date on nidi 

such director's term actually begins, the term of audi iHrwrfrir 

shall be the four-year period, or remainder thereof, aa If audi 

director had been preceded by a director whoee term had begnn 

on January 21, 1985. 

"(B) Of the five memben of the Board appointed 1» the Preeideat, 

not less than one such member shall be selected m>m among the 

small business community and shall represent the intereata of email 

business. 

"(C) Any person chosen to fill a vacancy shall be a^xunted only 
for the unexpired term of the director whom such person su coeedi, 
"(D) Any director whose term has expired taay be reaiqMNnted.". 
(b) In order to carry out the amendment maoe by subaec t ion (a) 
regarding section 3(cX8)(B) of the Export-Import Bank Act at IMS, 
tM first member, other than a member who will serve as Chairman 
or Vice Chairman of the Bank, appointed by the Praaidant of tbs 
United States to the Board of Directors of the ExpoTt-Import Bank 
of the United States after the date of the enactment of this wction 
shall be selected from among the small businoas community and 
shall represent the interests of small business. 

MBPORT ON AUTHORm 

Sec. 615. Section T(aK2) of the Export-Import Bank Act of 1»45 (12 
U.S.C. G35e<aK2)) is amended to read as follows: 

"(2MAKil Not later than March 31 of each fiscal year, the Presi- 
dent of the United States shall determine whether the authority 
available to the Bank for such Tiscal year will be sufficient to meet 
the Bank's needs, particularly those needs arising from — 

"(I) increase* in the level of exports unforeseen at the tioM of 
the original budget request for such fiscal year; 
"(II) any increased foreign export credit subsidies; or 



yGoot^le 



(1> in the second tentence of aubaection (aXl). by inserting 
"and Mrvicea" after "exchange of commodities"; 

(2) in the ucond nntence of subsection (bXlXA), by inserting 
"of gooda and aervicai" after "eiporta"; and 

(3) by inaerting after subsection (bXlXC) the following: 
'XDXi) It ii further the policy of the United States to foster the 

delivery of United States services in international commerce. In 
cx^^iaing its pcnvers and ftinctiooB, the Bank shall give full and 
squal consideration to making loans and providing guarantees for 
tba sjLpoit of servicM (independently, or in coiuunction with the 
c&INu't of manufactured goods, equipment, hardware or other capital 
moda) coDBiBlent with the Bank s policy to neutralize foreign subsi- 
dised credit competition and to supplement the private capital 



(1) fa^ striking out "or" after "export accounts receivable" and 
'• -" — 8 in lisu thereof a comma; and 



& tj iimsillim after "exportable goods," the following: "ac- 

*■ raosivable firom leases, per^rmance contracts, grant 

" 'i, participation fees, member dues, revenue from 

ir such other collateral as the Board of Directors 



Sac G17. Section 2 of the Export-Import Bank Act of 1945 (12 
US.C. 635) is amended by adding at the end thereof the following: 

"(dXl) In canying out its responsibilities under this Act, the Bank 
diall work to Rwure that United States companies are afforded 
an equal and lUMtdiscriminatoi; opportunity to Did for insurance in 
connectko with transactions assisted by the Bank. 



PUBLIC LAW 98-181— NOV. 30, 1983 

"(OD the lack of progreas in n^otiations to reduce or elimi- 
nate export credit subsidies, 
"(ii) Not later than April 15 of each year, the President of the 
United States shall transmit to ^e Congress a report on such Concrn*. 

drtermination. 

"(BXi) If the Preaident of the United States fmds that the amount PmidentiBl 

rf direct loan authority or guarantee authority available to the renuwt for 

Bank for the fiscal jrear involved exceeds the amount which will be uXinwraH 

nece^ury to carry <nit the Bank's functions consistent with the ^^"'~' 

■vailabiUty of qualified applications and limitations imposed by law 
during such year, the President of the United States shall promptly 
transmit to the Congress a request for legislation to elimmate the 
■mount of such exceas direct loan, loan guarantee, or insurance 
■ntboritv. 

"(ii) Trie Bank shall continue to make remaining amounts of its 
authority available for the fiscal year involved, in accordance with 
the requirements of this Act, unless otherwise 
toUw.''. 



"GQ The Bank shall include in its annual report a summary of its 
programs regarding the export of services.". 

IH Section 206 oftbe Export Trading Company Act of 19S2 (Public 9E3tj». 1239. 
I-wOT-2?0)U«nended- _ i^^^"* 



96 Stat. 1233. 



yGoot^le 



58 PUBUC LAW 98-181— NOV. 30, 1988 

"(2) In furtherance of such efTort. the ChBimian of the Bmak dwll 
review Bank policies and programs in regard to this iMue, and in 
coordination with the United States Trade Repraaentative and the 
appropriate agencies of the Department of State, the Department of 
the Treasury, and the Department of Commerce, undertaka action* 
designed to proniol« equal and nondiscriminatorr mportui '*' ~ '~ 
bid for insurance in connection with all aapecta of inten 
trade activities. 

"(3) The Bank shall report to the Committee or Banking, Finance 
and Urban Affairs of the House of Representative* and the Cotnmit- 
t«e on Banking. Housing, and Urban Affairs of the Senate not later 
than May 15, 1984, r^^arding— 

"(A) the existing obstacles to equal and nondiacriminatOf 
bidding for insurance related to transactions aa»i«teid bj the 
Bank; 

"(B) the efforts that the Bank has taken in addreMing such 
problems; and 

"(C) recommendations for such legislative or adminiatratin 
actions as the Bank considers necessary.". 

Sbc. 61S. <a) Section 2tbXl) of the Export-Import Bonk Act of IMS 
(12 U.S.C. 635a>)(l)) is amended— 

(II in subparagraph (Bl. by striking out "that the Bank shall 

give due recognition to tiie policy stated in section 2(a} of the 

Small Business Act" and all that follows through "the Small 

Business Administration and other departments and a{ 

matters affecting small business concerns;"; and 

12) by adding at the end thereof the following: 

"(EMiXI) It is further the policy of the United State* to « 

the participation of small business in international commarc*. 

"(11) In exercising its authority, the Bank shall develop a proL 
which gives fair consideration to making loans and providing guar- 
antees for the export of goods and services by sroall huainsMW 
"(ii) It is further the policy of the United SUtaa that tha Bank 
shall give due recognition to the policy stated in section 2ta) of the 
Small Business Act that 'the (jovemment should aid. counael, ■wi*t. 
and protect, insofar as is possible, the interests of small bmin— 
concerns in order to preserve free competitive enterprise'. 

"(iii) In furtherance of this policy, the Board of Diracton shall 
designate an ofHcer of tiie Bank who — 

"(I) shall be responsible to the President of the Bank for all 
matters concerning or alTecting small business concema; and 
"(11) among other duties, shall be responsible for advisinc 
small business concerns of the opportunities for small busine« 
concerns in the functions of the Bank and for maintaining 
haison with the Small Business Administration and other 
departments and agencies in matters affecting small buaities* 



"(iv) 'The Director appointed to represent the interests of atnall 
business under section 3(c) of this Act shall ensure that tha Bank 
carries out its responsibilities under clauses (ii) and (iii) of this 
subparagraph and that the Bank's financial and other resources are, 
to the maximum extent possible, appropriately used for small buu- 
ness needs. 



yGoot^le 



PUBLIC LAW 98-181— NOV. 30, 1983 



the 



loan, guarantee, and 



authority available to 
lainess concenu (aa 
Act) which ihall be 



deHned u 
not ICM than— 

"(I) 6 per centum of such authoritv for fiscal year 1984; 

"(II) 8 per centum of auch authority for fiscal year 1985; and 

"(in) 10 per centum of such authority for fiscal year 1986 and 

thereafter. 

"(vi) The Bank ahall utilize the amount set eaide punuant to 

clause (v) of this ■ubparagraph to offer financing for amall business 

export* on term* which are fully competitive witn regard to intenet 

rates and with regard to the portion of financing which may be 

provided, guaranteed, or insured. Financing under this clause (vi) 

' " ■ " " ard to whether financing for the 

MppTOved by any other Federal 

"(viiXD The Bank shall utUize a part of the amount set aside 
pursuant to clause (v) to provide lines of credit or guarantees to 
consortia erf small or medium size banks, export trading companies. 
State espmrt Bnanca agencies, export financing cooperatives, imall 
buainesi inveatiaent companies (as defined in section 103 of the 
Small BusinM Investment Act of 1958), or other fmancing institu- 
tioiis or entities in order to finance email business exports. 

'YID Financing under this danse (vii) shall be made available only 
where the oonacwtia or the partidpaUng institutions agree to under- 
take iiiiiiessiii|[. servicing, and credit evaluation functions in con- 
naetton with such fmancing. 

"(HD To the i" B ^ini'i" ) extent practicable, the Bank shall delegate 
to tbe conamlla the authority to approve financing under this clause 

(viix 

"dV) In the sdministmtion of the program under this clause (vii). 
the Bank shall provide appropriate technical asaiatance to partici- 
pating consortia and may require such consortia periodically to 
nimiui information to the Bank r^arding the number and amount 
of loana made and the creditworthinees of the borrowers. 

"(viii) In order to assure that the policv stated in clause (i) is 
carried out, the Bank shall imimote email Dusinesa exporta and ita 
small busineos export financing programs in cooperation with the 
Secretary of Commerce, the Mnce of International Trade of the 



m Adminiatralion, and the private sector, particularly 

. > organintiona. State agenciea. chambers of commerce, 

^^nifcjHj organia^iona, export management companies, export trad- 
iag msnpniiins. and private industry. . 
(b) Saction 9 afsneh Act (12 U.S.C. 635g) is amended— 

(1) in the first sentence of subeectitm (b), ^ inserting before 
tha period at the end thereof the following: and of the activi- 
ties of the member of the Board appointed to represent the 
interests of small business"; and 

(2) bj adding at the end thereof the following: 

"(cXl) The Bank shall include in its annual report to the Congress 
a raport on the allocation of the sums set aside for small buainess 
axporto pursuant to section 20)X1XE). 
''(2) Such raport shaU epecify— 

^U the total numher and dollar volume of loans made from 
the •ons sot aside; 



37-922 O - 84 - 



yGoot^le 



97 STAT. 1260 PUBLIC LAW 98-181— NOV. 80. 1988 

"(B) the number •nd dollar vtriiune of Imuw mad* thi«a(h ti» 
Anit. p. 1258. cMiaortia progmn under Mction ZCbXlKEXvlik 

'\Q the kinount of guarantoea and inmraDoa piwidad far 
Huall buaineai exporta; 

"(D) tha number of recipienta of tmantiiiK frtan tba auma Ht 
•aide who have not previoualy participated In tba Bank'i 
profrnunfli 

"(E) the number of commitmenta entered into in amoant* le* 
than $600,000; end 

"(P) any recommendationa for increaainc the paitic^Mtkn of 
bai^ and other institutione in the proKrama auUHrtaad imder 
aection 2(bKlXG). 
TrBMmiual to "(3) For the purpose tf this lubeection, the Bank'i report ahall be 

tranamitled to the Committee on Small Buaineaa tt tba ^"•^r*^ mat 



'"(Fi CoDBistcut with international BKreementa, the Bank ■ 

urge the Forei^ Credit Insurance AMOciation to provide cor w^e 
a^inat 100 per centum of any loea with remiect to exporta hanr' ~ 
value of loH than 1100.000.". 

spactAi. rAciuTtn in avreoxr or tTNrmi statss Kx r o m n 



BPBcuL PAcnjTm IN BUPFOKT Or UMTRD BTATn Kxrana 

"Sk^ 13. The Bank ie authorized to eatabliah genaral ftw^iiffw 
oonaiatins of Buaranteea and insurance in aupport of enorttcwuee- 
tiona to Brazil in the acKn«at« amount of 11.600.000.000 and la 
Iteieo in the aggregate amount of 1500,000.000. No auch guaranlan 
mar be made, or maurance itaued, after March 81. 1986.". 

(b) The tint aenlcnce of section 2(bX3) of the ExportJnqMrt Bank 
Act of 1945 (12 VS.C. 635ft>X3)) ia amendMl by inaartins "vr ganeid 
guarantee or insurance faeiUty" after "no loan or **■?'—■■' 
guarantee". 

(c) Section 2(bX3XA) of the Export-Import Bank Act of IMS (U 
U.S.C. 635(bX3XA)} is amended to read as followa: 

"(A) in the case of a loan or financial guarantaa — 
"(i) a brief description of the purpoaaa of the ta 
"(ii) the identity of the party or p ''~ — 
loan or financial guarantee; 

"(iii) the nature of the good* or ae -, - - 

and the uae for which uie gooda or sanicea are to be 
exported; and 

(iv) in the caae of a general guarantee or inaoranM 

"(D a deacription of the nature and purpoaa of tbt 

"(II) the total amount of guarantees or ii 



"(in) the reasons for the facility and its B 
operation; and", 

(d) Section ZOt) of the Export-Import Bank Act of 1946 aZ VS.C 
635(b)) is amended— 



yGoot^le 



PUBUC LAW 98-181— NOV. 30. 1983 

(1) hj r»dwiipi»ting frngmpb (8) aa paragraph (9); 

(2) Iqr ndaaviatiiiK wngniph (TK the wcDnd time it anwua 
therein, a* paragraph (8h end 

{8)bT ■■■ 

"(lOXA) T 
law, piaraBt«e, innire, or mtand credit (or participate in 
akm of credit) to— 

~ t ipedfic oountries with balance of payment* 



>t (aa the primary purpoae of any nich guarantee, 

inmraiKe, or credit) any couotry in the management of it« 

intamatiMtal iadebtedneal, other than its outstanding obli- 

gationa to the Bank. 

"(B) Nothing contained in oubparagraph (A) ahall preclude 

Kuaranteea, insurance, or credit the primaiy purpoae of which i> 

to support United States exports.". 

nCHNICAL AMKNOHnrra 

&C. 620. (a) SecUon 2(bXi) of the Export-Import Bank Act of 1945 
(12 VS.C. 635(bX4)) is amended by striking out "he" wherever it 
■raears and inserting in lieu thereof "the Secretary". 

0>) Section 3(e) of the Ezport-Import Bank Act of 1945 (12 U.S.U. 
6S6«(e))i*Biitaided— 

(1) by striking out "his" and insaiting in lieu thereof "such 
individual's"; and 

(2) by striking out "he" and inserting in lieu thereof "nich 
individual". 

(c) Saction 4 trf the Biport-Iniport Bank Act of IMS (12 U.S.C. 
636b) is amended by striking out "he" and inserting in lieu thereof 
"the President". 

(d) Section 7(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 
6S6e(b)) is amended by striking out "he" wherever it appear* and 
inserting in lieu thereof "the President". 

CAPTTAL LXVSL or THE BANK 



CAPITAL LKVSL OP TUB BANK 

"Sbc 14. After fiscal year 1983, if at the end of any Tiscal quarter Notification oS 

the value cf the total capital stock and retained earnings of the Congrees. 
Bank (alls bdowSOper centum of the value of the total capital stock izU8C635i-2. 
and retained earnings of the Bank at the end of fiecal year 1983, the 
Board «f IKractors diall notify the Congree* of the decreew in the 
levd of the capital stock of the Bank not later than thirty days after 
the and of the fiscal quarter involved and the Congress shall take 
a p p r opriate action.". 



yGoot^le 



97 STAT. 1262 PUBUC LAW 98-181— NOV. 80, 1988 

"(2) In order for the Bank to be coniwtitive in all of It* 



progruns with oountrie* whoae earpo rte ccoipeto with United Statet 
exports, the Bank •hall establiah B imigrun that — 

"(A) pTovidM ntedium-term financing where Decaaaaiy to be 
fuUy cranpetitive — 

"(i) at rates of intereat to the cuBbxner which am aqnal to 
rataa eatabliabed in international agreementa; and 

"(ii) in anwunta up to 85 percent at the tcrtal coat of A* 
exporta involved; ana 
"(B) enaUaa the Bank to cooperate MIt with the Secretai? «f 

rnmiMWMtuI t.ha Ailmiiiiatratnrnf IJm HimII niimniii Ailiwjn. 

Uration to develop a program for puipoaea of iliMHiiiliialliij 
iiiftjrmBtian (uaing existing private institution*) to small bush 
ness concerns regarding the medium-tern) Rnsadng pnrvided 
under this paragraph.". 



Sac. 623. SecUon 9 of the Export'Inipmt Bank Act ol 194S {\t 
U.8.C. 635e) U amended by adding at the end tbereoT the foOowii^ 

"(dKl) The report shall include a detailed deacrMkxi of all aetwes 
which have be^ taken by the Bank or whidi wul be taken hj Ih* 



"(B) to support iodustriee which a: 
hish value added products; 

(Q to support industries which are eng^sd In the devricp- 
ment of new capital goods technology; 

"<D) to preserve and create hi^ skiUed Jobs in the United 
States economy; and 

"(E) to enhance the opportunity for growth and expanafaMi of 
small busineasea and entrepreneturial enterpriaea. 
"(2) Such report shall include the comments tt the AdriMrT 
Committee regarding the otyectives specified in paragnph <U . 

Past B— Matchino Cantns 

UATCHWO cunnB 

Sic. 631. Section 1912 of the Export-Import Bank Act Amaod- 
menta of 1978 ii amended — 

(1) by adding at the end orsubsectian (aXD tlM feOowing: "Tb* 
inquiry, and where appropriate, the detenninatkn and authori- 
sation to the Expor^Import Bank of the Unitad Stataa nfensd 
to in this section shall be completed and made within 60 dqssf 
the receipt of such information."; and 

(2) in subsection (bXl). \fs str^ing out "i 
and inserting in lieu thereof "significant hctor". 



Sac 632. Section 1911 of the Export-Import Bank Act Amaod- 
ments oft97S iB amended by adding at the end thereof the feUowioc 
"After October 1, 1983, there are authorised to be apprnviatad sun 
sums as may be n e c e es a iy to carry out the proYiaioBi of lliii 



yGoot^le 



PUBUC LAW 98-181— NOV. i 



tXCHNICAL AHINDKBNT 



97 STAT. 1263 



Sac 633. (a) Section 19120)) of the Export-Import Bank Act 
AnModmenta of 1978 ia amended by rtrklng out "he and inserting 
in lieu thKtnS "the Secratary". 

<b) SectioD 1912laX2) of the Eiport-Import Bank Act Amendmenta 
of 1978 ii amended by atriking out "he" and inserting in lieu thereof 
"thaSaeretwT". 

Pait C— Tied Aid CMtDrr Exi>oin' SuanoiKS 



Sac. 642. The purpose of this part is— a USC 63 

<1) to expand employment and sconomic growth in the United 
Statea by expanding Unitad States exports to the markets of the 
developing world; 

<2) to stimulate the sconomic development of countries in the 
developing world by improving their access to credit for the 
importatiim of United States products and services for develop- 
mental pnrpoaea; 

(3) to neutralixe the predatory financing engaged in by many 
nations whose exports compete with United States exports, and 
thereby rea t ore export competition to a market basis; and 

44) to encourage (breign governments to enter into effective 
and eomprehenaive agreements with the United Stales to end 
the use of tied aid credits for exports, and to limit and goverr 
the use of export credit subsidies generally. 



Smc 643. The President shall vigorously pursv 
limit and set rules for the use of tied aid for exporti 
oltfsctiTce of the United States should include reaching 

(1) to define the various forms of tied aid credit, particular^ 
mixad oredita under the Arrangement on Guidelines for ORi- 
dallj Supported Export Credits established through the Organi- 
xMion for Economic Coloration and Development (hereinafter 
in this iNut referred to as the "Arrangement' y, 

(2) to phase out the use of government-mixed credits by e date 



(8)loi 



(41 to 

cndittc 

(5) to 



I govern] 

forms M mixed financing, which may have the 
govenunent-mixed credits of drawing 



wnti 



iistan< 



o produce subaidized export financing; 



raise the threshold for notification of the use of tied aid 

taSO per centum level of concessionality; 

Improve notification procedures so that advance notifi- 
must be given on all uses of tied aid credit; and 
o prtdiibtt the use of tied aid credit for production facili- 
r iooda which Kre in structural oversupply in the world. 



yGoot^le 



PUBLIC LAW 98-181— NOV. 30, 1983 



Sic 644. («X1) The OiHinnan of the Eiport-lmport Bank of the 
United Statea ahall establiah, within the Expoit-Import Bank of the 
United States, a program of tied aid credita for United State* 

(2) TTie prcgram ehall be carried out in Eooperation with the 
Agency for International Development and with private financial 
inatitutiona or entitiea, as appropriate. 

(3) lite program may include— 

(A) the comhined lue of the credita, loana, or puranteei 
oflerad by the Esport-Import Bank of the United States with 
c on c e s s ional financing or grants offerod by the Agency for 
International Development, by methode including the blending 
of the financing of. or parallel financing by, the Bank and the 
Agency for International Development; and 

(B) the combined uae of credita, loans, or guarantees offered 
by the Bank, with financing ctffered by private financial institu- 
tions or entitiee, by methods including the Uending of the 
financing of, or parallel financing by, the Bank and private 
institutions or entities. 

(b) The purpose of the tied aid credit program under this section if 
to offer or arrange for financing for the export of United States 
goods and services which it subetaotially as owiceaaional as t<M«igD 
financing for which there is reasonable proof that such foreign 
financing is being offend to, or arranged for, a bcma fide foreign 
competitor for a United States export ssle. 

(c) The Chairman of the Bank ii authorized to eetahlish a fund, ss 
' T CBTiTing out the tied aid credit program described in 



(d) Concessional financing or grants offered by the Agency for 
International Development for the purposes of the mixed financing 
program established under this section shall be mads avBilable in 
accordance with the provisions of subsections (c) and (d) of section 
645rfthi8AcL 



A TiKD Am cxBtrr pxoobam in tri aobnct fob 



SH^ 64G. (a) The Administrator of the Agency for International 
Developmsnt shall ttstaMlsh within the Agency ■ program et tied 
aid credita for United States exports. The program dudl be canied 
imt in coopeiation with the Export-ImiwTt Bank of Um United 
Statss and with private financial institutions or sntltisa, as apim>- 
priato. The program may include — 

(1) the combined use of the credits, loans, or guarantees 
offered by the Bank with conceeaional financing or grants 
offered by the Agency for International Development, by meth- 
ods including the blending of the financing of, or pandlsl 
financing by, the Bank and the Agency for International Devel- 
opmtat;aad 

(2) the combination of conceeaional financing or grants ofleittd 
hr the Agency for International Development with financing 



yGoot^le 



PUBLIC LAW 98-181— NOV. 30, 1988 

iy, tha Afeoc^ for Intemmtional Development and private insti- 
tutiona or entitie*. 

(b) Tlieaa fund* mM be combined with Tmancing by the Ezport- 
Import Bank of tbe United Statca or private* coramercial financing 
in coder to offer, or arrange for, financing for the exportation of 
Unitad Stataa BO(ida and aervicM which ia subatantially aa cooces- 
Moal aa fixcign financing for which there ia reaaonable proof that 
mdt foniga financing ii being tiered to, or arranged for, a bone 
fide forrign emnpetitor for a United States export tale. 

(cXl) nuuk ct the agenc; for Intamatiofial Development which 
•I* uaed to cairr out a tied aid cndit program authorised by 
wbaectiona (a) and A) ahall be offered only to finance United Stataa 
norta which can reascoiBbly be expecUd to contribute to the 
amnoaBMot of tlM development objecttvea of Uie importing country 
or GonntnaL and ahall be conaiatent with the economic, aecurity, 
md political criteria uaed to eetabliali country allocationa of Eco- 
nmuc Support Puiuta. 

(2) nm Xdminiatrator of the Agency for International Develop- 
■ant ia autbrniMd to catablidi a fimd, aa neceaaary, for carrying out 
a tiad aid credit Rnaneing program aa deecribed in this aection, 

(d) Hm Adminiatrator of the Agency for International Develop- 
■Mat may draw on Bri^m^ty Support Funda allocated for Commod- 
ity Import Progiama to finance a tieJ aid credit activity. 



Sk. 646. (aXl) Tbe National Adviaory Council on International 
Htnetan and Rnandal Polieiea ahall coordinate Uie implementa- 
tta of tne tied aid credit programa authoriaed by aectiona 644 and 

CD No financing may be approved under the tied aid credit 

— » uithoriied by aection 644 or aection 645 without the 

ua consent irf' the memlien of the National Adviaory Coun- 
o International Uonetaiy and Financial Polidea. 



C 647. For piirpoaee irf thia part— 
(1) tbe term ^'Ued aid crsfit" mi 



country nanting the oedit; 

(O iriuch ia *'"f"<'-<l either exclusivelr from public funda, 
or, aa a mixed credit, partly from public and partly from 

. -la defined by the Develop- 

„_, Jommittee of the Organization for Eco- 

ncinic Coopervtioa and Development, greater than aero 



private fimd^ and 

(D) which hna a grant el 
ment Aariatance Commit 



(Z) tbe term "Kuvei lunent-mixed credita" meana the combined 
vaa of oedlta, inaiirance, and guarantaea offered by the Elxport- 
Import Bank of tbe United Statea with conceaaional fmancing 
cr franti o ffe red by tbe Agent? for IntemationBl Development 



neans the combined 
Baa of altber oAdal development asaiatance or official export 
credit with private commercial credit to fmance exporta; 



yGoot^le 



PUBLIC LAW 98-181-NOV. 30, 1988 



12 use 636a-a. 
19 use 1671*. 
19 use 1611b 



(4) the term "blendinff of^nancings" i 
Combinationa of ofFiciaT development ai 
credit, and private commerdal credit, inteKi^ted into a sin^ 



I, offitnal export 



package witn a single set of financial terma, to finance ^port^ 
<6) the terra "parallel financinc" means the related lue d 
varioua combinationa of separate linea of official development 
aaristaiice, official ex|3ort cr«dita, and private commerdal 
credit, not combined into a single package with a single set of 
financial terma, to finance eiporta; and 

(6) the term "Bank" means the Export-Import Bank of the 
United States. 
S(C. 650. (a) SecUon 702 of the Tariff Act of 1930 as amended, h 
amended b* adding af^ subsection T02(bX2) a new suboectioii 
T02(bX3) as followa: 

"(3) PrrrnoN Baskd Upon a Dkrogation op an iNTKaNATiONAi. 
Undkbtakino on OmciAi. Espobt Caxorrs. — If the sole basia of a 
[letition filed under subsection 702(b)(l} is the derogntion of an 
utemationol undertaking on official export credits, the Administer- 
ing Authority shal] immediatelj notify the Secrvtat; of the Treas- 
ury who shall, in consultation with the Administering Authority, 
within twenty days determine the existence and estimated value of 
the defection, if any, and shall publish such determination in the 
Federal Register.". 

(b) Section 703 of the Tariff Act of 1930, aa amended, is antended 
by redesignating eubaection 703(b) as subaection 703(bXl} and adding 
a new subsection 7030>X2) as follows: 

"(2) NotwithatandinK subeecUon (bXl), when Um> peUtion is one 
subject to subaection 702(bK3), the Administering Authority shall, 
takmg into account the nature of the subsidy concerned, make the 
determination required by subaection 703(bKl> on an expedited basis 
and within 85 days after the date on whidi the petition is filed 
under section 7020)) unleaa the provisions of section T03(c) apply.". 

(c) TiUe VU of the Tariff Act of 1930 is amended by adding at the 
end thereof the following new section — 

"Sec. 708. Nothing in this title shall be interpreted as superseding 
the provisions of section 1912 of the Export-Import Bank Act 
Amendments of 1978, except ttiat in the event of an assessment of 
duty based on a derogation under section 706 or action under section 
703(dKZ>, the SecreUry of the Treasury shall not authMiie the Bank 
to provide guarantees, insurance and credits to competing United 
States sellers pursuant to section 1912 of such Act". 

TTTLE Vn— MISCELLANEOUS PROVISIONS 



Sk. 701. (a) Sections 304, 310, and 311 of the Home Mortgage 
Disclosure Act of 1975 (12 U.S.C. 2803. 2809, and 2810) are amended 
by striking out "standard metropolitan statistical area" wherever it 
appears and inserting in lieu thereof "primary metropolitan statisti- 
cal area, metropolitan statistical area, or conaolidated metropolitan 
statistical area that is not comprised of designated primary metro- 
piriitan statistical areas". 

(b) SecUon 308 of the Home Mortgage Discloeure Act of 1975 (12 
U.S.C. 2807) is amended by striking out "standard metropolitan 
statistical areas" wherever it appears and inserting in lieu ther«of 
"primary metropolitan statistical areas, metropolitan statistical 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 97 STAT. 1267 



nM, or CMMolidrtwL , 

wp i 'i— d of dangnatad primary n 



(c) Section 208(1) of the Depontory Institutiona Management In- 
«rleda Act (12 VS.C. 3202(1)) ia amended bjr striking out "standard 
urtnrirfmaii atatiatical area" and inaerUng in lieu thereof "primary 
wtujwlilMj rtatiatical area, the aacne metropolitan statistical area, 
w tka aama cooMdidated metiDpolitan statistical area that ia not 
Wli|W laiMl ct designated primary metropolitan statistical areas". 



Sac 702. (a) Section 2 of the Federal Deposit Insurance Act (12 
J&C 1812) is amended by insertiiig after the third aentence the 
* ** ' ig: "&k1i such appointive member may continue to serve 
» azpiratian of his term until a succeosor haa been appointed 



"September 30, 1983" and inserting in lieu thereof 



0) Section 17(a) of the FedenU Home Loan Bank Act (12 U.S.C. 
lIMa}) is amended by adding at the end thereof the followins- 
"Uaon the expirationMthe term <rf office irf a member of the Board, 
an member may continue to aerve until a successor has been 
maintert and qualified.". 

DKTDna noDucnoN act amNatON 

te. 703. The first aentenoe of Section 7lT(a) of the Defense 
FMduction Act of 1950 (50 US.C. App. 2166(a)) is amended by 
ttiking out "SMttember 30, 1983" and in 
-IbiSaD. 1984": 



TITLE Vin— INTERNATIONAL MONET ABY FUND 
a ooNDtnoNS roa kxchangs sati STAatuTV 



40. (a) In order to help aaaure that the resources provided Iniiiaiives by 
■■ " ■■ which will I™.'">' 



ndar section 41 are uasd to support pn^growth policies 

Up sstaMish the economic conditions necessary for more appropri- 

A WwftwiMi and exchange rate alignment and stability, it is the 



„. _ J Seci«tary of State and the 

United States Trade Repreaentative, initiate discussions with 
otho' countries regarding the economic dislocations which 
rauH ftwn structural esdunge rate imbalances: and 

"(2) instruct the United Statea Executive Director of the Fund 
ta work fbr adoption of poUdee in the Fund, both within the 

B IV (of the Articles of Agreement of the 

» and with reepect to the conditions 

1 with Fund.supported balance of payments adjust- 



diaace ntea between major cur 

liiea, the Secretary of the Treasury shall propose strengthening 

the article IV conaultation procedures of the Fund to attempt to 






yGoot^le 



97 STAT. 1268 PUBLIC LAW 98-181— NOV. 30, 1988 

enaure that coiintrica which are artificially ■""'"tfi'^'ng under 
valued or overvalued rates of exchange agree to adopt market 
determined exchanKe rates. 
"(hi In determining his vote on eitennoua of aaaiBtance to aiqi 
Fund borrower, the United Statea ELzecutive Director of the Fund 
diall take into account whether auch borrower'a policiea are conaitt- 
ent with the requirements of article IV of the Article* of Agreement 
of the Fund". 



Sbc 802. (a) The Bretton Wooda Agreements Act (22 U.S.C. 286 et 
nq.) ia amended — 

(l)io section 17<a>~ 

(A) by strilting out "dec!si<n) of January 5, 19G2," and 
inserting in lieu thereof "decisions of Januai; 5, 1962, and 
February 24, 1983, as amended in accordance with their 
terms,"; and 

(B) by striking out "not to excead $2,000,000,000 outstand- 
ing at any one time," and inserting in lieu thereof "in an 
amount not to exceed the equivalent of 4,2GO,000.000 Spe- 
cial Drawing Rights, limited to such amounts as are prf^ 
vided in advance in appropriations Acts, except that piim 
'a activation, the Secretary of the Treasury shall certi^ 



that supplementary resourcsa are needed to forestall e 
cope with an impairment of the international mi 
system and that the Fund has fully explored other ie 



funding,"; 

<2) in section 170)), by striking out "$2,000,000,000," and 
inserting In lieu thereof ''4,250,000,000 Special Drawing Rights, 
except that prior to activation, thie Secretary of the Treasuiy 
shall certify whether supplementaiy resources ai« needed to 
forestall or cope with an impairment of the intematicKial mone- 
tary system and that the Fund ha* fully explored other means 

(3) by Mduig at the end of section 17 the folloiving: 

"(d) Unless the Congress by law so authorizes, neither the Presi- 
dent, the Secretary of the Treasury, nor anv other person acting on 
behalf of the United States, may instruct the United States Execu- 
tive Director to the Fund to consent to any amendment to the 
Deciaion of February 24, 1983, of the Executive Directors of the 
Fund, if the adoption of such amendment would aignificantly alter 
the amount, terms, or conditions of p«rticipation by the United 
States in the General Arrangements to Borrow."; and 

(4) by adding at the end thereof the followiog: 

"Sic. 41. (a) The United States Governor of the Fund is authorized 
to consent to an increase in the quota of the United States in the 
Fund equivalent to 5,310,800,000 Special Drawing Rights, limited to 
such amounts as are provided in advance in apprapriations Acts. 
"(bXl) 'nie Secretary of the Treasury shall consult with the chair- 
man and the ranking minority member of— 

"(A) the Committee on Banking, Finance and Urban Affairs 
and the Committee on Appropriations of the Houae of R^>re- 
•entativee, and any appropriate subcorrmiittee of each such 
committee; and 



yGoot^le 



PUBUC LAW 98-181-NOV, 30, 1983 

'XBi tha CMUaittas oa Foreign ReUtioiu, th« Committee on 

^KirOfnriatioiis, and the Committee on Banking, Housing, and 

Unan Albin of tbo Senate, and anr appropriate suboommittee 

rf aacfa nich ecaniiiittee, 

W purpOM* of ■*'—"—' "B the poeition of the executive branch and 

ha vjfl«n of the Omgroi with respect to any international negotia- 

■BBa beiiK hold to conaideT an^ future quota increase for the 

J Mooetaij Fund which ma; involve an increased con- 



"(B) during tha period in which tuch negotiationa are being 
held, in a fr«quent and timely manner; and 

"(C) before a aeaaiaai of eudi negotiations is held at which the 
United States representatives may agree to such quota increase. 



bDrmring, and to allow landers to make sound and prudent 
dsdnona co n caming thair international lending, threatens the 
slalrili^ of the intamatioaal moaetary syBtam; and 

"YS m racognition of tha Fund's dutjea, as provided particu- 

larty by article Vm of the Articles of Agreement of the Fund, to 

Kt M « canter fbr tha collectioo and exchange of information on 

menetan and financial problems, the Fund should adopt necea- 

mr and appropci»t« meawrw to ensure that more complete 

■bJ timely fmandal inforawtion will be available. 

HM T» this end, tha Saa«tai7 of the IVeaaurj; shall instruct the 

tUad Stataa Bucutive Director of the Vuad to initiate discussions 

•llhotherdirecloriof the nindaitd with Fund management, and to 

fnpoM and vote fbr, the adoption of procedurae, within the Fund— 

"(1) to collect and diMeminate information, on e quarterly 

hi is. from and to Fund memben, and to such other persons as 

tha Fnnd ili«ims appnpriala, concsming — 

"CA) the extension oT credit by banks or nonbanks to 
private and public enUtias, inflmliiig all government enti- 
tiaa, instnimmtnlitins. and central banks of member coun- 
tiiskand 

"(B) the receipt of such credit bv those private and public 
•ntitiea of member oountries, where such bonks or non- 
banks are not principally established within the borden of 
the I in II 111 Mil country to which the credits ore extended; and 
"(Z) to diiniiiiiislii pablidy information which is developed in 
it the Fluid's colIectioR, and to review and comment 



t entitiM, instnmientalitiea. and central banks at 



yGoot^le 



7="? 



PUBLIC LAW 98-181— NOV. 30, 1988 

"(2) untued lines of credit which have been made avaiUtle to 
thoee private and public entities of any member, 
where such loans or lines of credit are repayable in freely concert' 

"(d) The President is authorized to um the authority provided 
under section S of this Act to require any perwm (as defined in Mch 
section) subject lo the jurisdiction of the United States to proride 
such information aa the Fund determinee to be necessary in order to 
carry out the provisions of this section.". 

SPECIAL DRAwwo uoms 

Sbc. 803, Section 6 of the ^>ecial Drawing RighU Act (22 U.S.C 
2S6q) is amended— 

(1) by inserting "(a)" after "Skc. 6."; and 

(2) by addine at the end thereof the fMlowinp 

"(bKl) Neither uie President nor any peraon or sgency shall oa 
behalf of the United States vote to allocate Special Drawing Righti 
under article XVIII, sections 2 and 3. of the ArtKleaofAgreeiacmtaf 
the Fund without consultations by Uie Secrvtarj of the Trcaiun at 
least 90 days prior to any such vots, with the Chairman fnd rankiiic 
minority membera of the (Committee on Foreign RalationB and tb* 
Committee on Banking, Housing, and Urban AfEtii* of the Scoals 
and the Committee on Banking, Finwoce and Urban AfTaira of ths 
Ives, anduieai 



House of Representatives, ai 



le appropriate subcommittees tbers- 



"(2) Such consultations riudi include an explanation of the consiit- 
ency of such proposal to allocate with the raquiraments of tfaa 
Articles of Agreement of the Fund, in particular the requirsnMDt 
that in all itsdecisions with reapect to allocation of Special Dnnring 
Rights, the Fund shall 'seek to meat the long-term global nasd, m 
and when it arises, to supplement existing rseenrs asaeta in siidi 
manner as will promote the attainment of its purposes and wiB 
avoid economic stagnation and deflation ss well as excess 't*"'—'^ 
and inflation in the world'.". 



'iNBTRUCnONS TO THE UNTTCD STATD KSKCUTIVI DtOaCTOa 



other highly inefiicient labor and capital supiJy rigUities whiA 
contribute to balance of pajmtents deficits in <uract contradiction of 
the goals of the International Monetarr Fund, llwrelbn. the Seera- 
tary of the Treasury shall instruct Uw Unilad States Executive 
Director of the Fund to actively oppose any focilit; tnTOlving use <( 
Fund credit by any Communist dictatoishipk onksa the Secratair ef 
the Treasury certifies and documents in writing upon request and SO 
notifies and appears, if requested, befora the Foreign Relations and 
Banking, Housing, and Urban Affairs Committees of tbe Senate and 
the Banking, Finance and Urban Affairs Committas of tbe House Vt 
RepresentaUves. at least twenty-one days in advance of any vote en 
such drawing that such drawing— 



yGoot^le 



PUBUC LAW 98-181— NOV. 30. 1983 



n labor and capital 
Qitr or other higfal; ineflicieiit labor and capital supply 
SUm and advancea market-oriented forces io that country; 

' ti in the beet ecmtomic intereet of the nuiiority of the 
lain that covnti;. 

.m._ a . — .... j^^^ ^ requeet to appear before the 

e at least twenty-one days in advance of 



t, the United SUtca Executive Direc- 
tauchproKrani. 

■ bercegr find* that the practice of apartheid 
atrainte on labor and capital mobility and other 
it labor and cai^tal supply rigidities which contrib- 
e of paymcoti defidta m (Urect contradiction of the 
HM intamatianal Uaoetary Fund. Therefore, the Preflident 
tract the United SUtea Executire Director of the Fund to 
Me any fadlity inv(dviiig uae of Fund credit by any 
li prarticea aiiarthrid muMi the Secretary of the Treas- 
UM documcnla in writinK. vpoa requeat, and lo notifiea 
if leauealad, brfbre the FWeiiKn RelationB and Banking, 
I Urban AOaira Conunitteoa of the Senate and the 
ft and Urban Aflkiia Committee of the House of 
. at In a at twenlT«ne daya in advance of any vote on 
L that aueb drawing: (1) wtnild reduce the severe con- 






■ciallv- 

Uri c tioiM on the Beogmihieal moUlibr of labor, (2) would 
tar U0i]y ineffident bbor and capitu supply rigiditiea; 
D^tt acmamicaUT the muority of the people of any ooi; 



a the al bta i D witi o ne d mmmittiTni at least twenty-one 

i fc a nea «f any vote on mny Cscili^ involving use of Fund 
' ai^ eounti7 practicing apaitbod and certify and docu- 
wnting that thcae four conditioM have been met, the 
lalai Baacotiw IMiactor shall vote against such program.". 



:iru Bpartheid. 
•tricted fuiHJ- 

Mirictition of 



"BJHDfAtiOM or AancuLTUBAi. axroar suaanMB 

M. The SecretafT of the Treasury shaU instruct the United 22VSC2Mhb 
l ac uti va IXiactor of the F^ind to p ropoee and work for the 
flf a policy encouraging Au^ i n ii !>!* ■• to eliminate all 
f agrictiltnral azport sobaidies which might result i: 
■ urothn'ni 



yGoot^le 



PimLIC LAW 98-181— NOV. 30. 1983 
auiTAiNiNO aconomc omowtb 



"SUSTAININO aCONOMIC 

"Sec. 4E. (aXl) The Prendent ahsU inatruct the SBCretar? ■ 
Treaaury. the Secretary of State, utd other a p iwtmriate Ft 
officiala. and shall request the Qiairman of the Bmm of Gov* 
of the Federal Reeerve System, to uae all appraprial« 



[xurage couDtriea to formulate economic a^iuatinent pncra 

il with their balance of payment difBcultiea and ext^mal 
owed to private banks. 

"(2) Such ecoBomic adjustment programs abouM be iletigr 
safeguard, to the maximum extent fauible, intcmatiooal •" 

growth, world t^Mle, employment, and the loi ""' 

Banks, and to minimi™ the likelihood of civil d 
triea needing economic adjustment programs. 

"(b) To ensure the effectiveneeB of economic a4juatment pro| 



"(1) the United Sutee EiecuUve Directw of the Fund 
recommend and shall work for changea in Fund guid< 
policies, and decisions which would — 

"(A) convert short-tern) bank debt which was BU 
high intereet rates into long-term debt at lower n 
interert; 

"(B) assi 
shaD include principal, intereet, points, fees, i 
charges required of the country involved, is a manai 
and prudent percentage of the projected annual 4 
earnings of such count^, and 
"(O provide that ' 

program the Fund 

countries apolying to the Fund fbr . _,__ 

programs ana the aggi^ate effects that such progran 

nave on international economic growth, worM 

exports and employment of other member countriei 

the long-term solvency of banks; and 

"(2) except as provided in subaection (c) of this sectlo 

United States Executive Director of the Fund ihaU oppot 

vote against providing awietance from the Fund fbr an 

nomic adjustment program for a country in which the ■ 

external debt eervkce exceeds B5 per centum of the a 

export earnings of such country, \iTi\tm the Secretary ' 

Treasunr firat determinea and provides written documen 

to the Committee on Banking, Housing, and Urban AfHai 

the Committee on Foreign Relations of the Senate an 

Committee on Banking, Finance and Urban Affair* i 

House of Rcpreaentativea that — 

"(A) the economic adjustment program convert! 
interest rate, abort-term bank debt Into kmg-tenn d 
significantly narrower interest rate spreads than tbi 
age intereet rale spreads prevailing on bank debt r(~~ 

ings negotiated between A ■ '^" -* * ' 

countries receiving aasista 

adjustment program* in order to minimise the burd 



prevailing on bank lUtt reac 
August U82 and Aupist IS 
tance from the Fund for eco 



yGoot^le 



PUMJC LAW 98-181— NOV- 30, 1983 

KJjii^tiieirt on the debtor nation, provided that such inter- 
est rate apnada are consistent with that nation's need to 
obtain adequate external private fmancing; 

"(B) the annual external debt service required of the 
counti; involved is a manageable and prudent percentage 
of the fmgected annual export earnings of sucn countiy; 
and 

. _. economic growth, world 

_, and employment of other member countries, 

and the long-term solvency of banks. 
lie) The praririona of nibMCtion (bX2) Bhatl not apply in any caae 
■ whidi tM Sacretai; cf the Treasury first determines and provides 
■iiU«m docmnentatMKi to the Committee on Banking. Housing, and 
Ihtea Affoira and the Committee on Foreign [lelations of the 
flwislt and the Cotnmittee aa Banking, Finance and Urban Affairs 
rflhe Houae oTBqxvMntatives that- 
'll) an cmeigency exiata in a nation that has applied to the 
Fund for aviitance that reauirea an immediate short-term loan 
to avoid dianiptuiK orduiy financial markets; 

*X2) a ff"*iw' qecraaae in export earnings in the country 
iqifilying to tita Fund for aaaintnnrr has increased the ratio at 
■Dnnal tttemal debt service to annual export earnings, to 
maisr than 8fi per ceitum for a period pK^ected to be no more 
ninnixwyear or 

"XSi other extraordinary circumstances exist which warrant 
waiving the provinons of subsection (bX2).". 

OFPOaiMO FUND BAlLOtna or BAMKS 



oPFOONa ruNO bailoitis op banks 

"Sac 46. nie Secretary of the Treasury shall instruct the United 
SMm Eiwcutive Director of the Fund — 

"il) to oppose and vote against any Fund drawing by a 
nNalwr country where, in his judgment, the Fund resourcee 
woold be drawn principnUy for the nuivne of repaying loans 
<riliGll fame been imprudently msrde by banking institutions to 
th* mandMr eount^ and 

"00 to wmk to uaure that the Fund encourages borrowing 
umiiliiaa and bankiiu inatituticau to negotiate, where a[vropn- 
ate^ • I— IisiImIIiiu of debt which is consistent with safe and 
■Mnd banfcing practices and the country's ability to pay.". 

auHFUfS ooMMOomn 

Sk-SOB-WSl 

DAC 288b(b» is < 

Mta Eituti ws Duector ol 

. Act that devrioMMot aanatance loans have upon individual 
I Uastn Melon and international commodity markeU — 
"^A) to minimi— imgected advene impacts; and 



yGoot^le 



PUBUC LAW 98-181-NOV. 30, 1983 



tho market* for nidi 



"Sk. 47. The Secretary of the Treasury (hall iaatniet th« Unit«d 

States E^zecutive Director of the Fund to propcae that tbe Fund 

adopt the following polidea with reapect to tntamatiemal landiiif 

"(1) In its eonaultationa with a member gnBmitient oa m 

economic policies pursuant to article IV of the Articles nf 

Agreement of the Fund^ the Fund should — 

"(A) intMuiiy its esaminatiou of the trend and volmue of 
external indefatadneM of private and public bot r oaw is in 
the member country and comment, as ^>propriate, in Hi 
report to the Executive Board thMn Um Tiewpnnt of the 
contribution of sudi bontwrings to ti>e acono mi e staMUQf «l 
the borrower; and 

"(B) consider to what extent and in what IbnB thass 

comments mitjht be made available to the intematioMsl 

banking communitv and the public. 

"(2) As part of any Fund^pproved «*»'*■'■*»*■"■ program, tbs 

Fund shcHild fcive consideration to placing limits on pnbUe 

sector external short- and long-term borrovring. 

"(3) A* a iwrt of its annual report, and at soch Umas as it msy 



"mr iNTCXxn' XATXi 
S2USC286fT. 



Fund drawing to bring those rates in line with market ralaa.". 



Sic. 811. Section 5 of the Bretton Wooda AgrMmants Act (SI 
U.S.C. 286c> la amended by adding at the end thereof the fonowing: 



'Neither the President nor any person or agencT shall, on bdialf of 

• . .1.. .. . . n. _ . . . . . jjy borrowing (ouier than btvrmrinc 

other ofRcial public souroa) bj the 



the United States, consent to any borrowing (ouier than har 
from a foreign government or other ofRcial public souroa) 
Fund of funds denominated in United States dollars, unh . . . 
Secretary of the Treasury transmits a notice of such proposed 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 97 STAT. 1275 

[ to both Houw* of the Conrrcta at least 60 deya prior to 
■I whidi such borrowing ui Bcheduled to occur.". 



"tsadb PROvisicms 



■ BzecutivB Director of the Fund 
tfm with the Managing Director of the Fund and the other 
> «f the Fund with regard to the development of Fund 
I aMJatBitce polidea which, to the maximuni feasible 

A) (edaeo ohrtaclee to and restrictions upon international 

to and innMznent in goods and services; 

n diminato nnfeir trade and investment practices; and 

wmnate mutually advantageous economic relations. 

ha Saattaiy of the Treasury sWi work closely in this effort 

1 Aade PolKy Committee, 



o Fund staff and the GATT Secretariat 

The Secretary of the IVeasury shall instruct the United 
kMUtive Director of the Fund, prior to the extension to any 
of finsaicial assiatanoe by the Fund, to work to have the 
itain the ^reement of such country to eliminate, in a 
conaiatent with ita balance of paynients adjustinent pro- 
odUr trade and inv««tment practicee with respect to goods 
ricaa which the United States Trade Representative, after 
ttai with the Trade Policy Committee, has determined to 
"~~t deleterious effect on the international trading 



aectioo with the ezp>rting of agricultural conuno<Utiee and 

facta thereof to fi>reign countriea; 

n the proviakm of other export subaidies, such as govern- 

d ibeiniwid bdow-market interest rate financing for com- 

Ktiea or manufactured goods; 

O tUTHMonable import restrictions: 

n> the impoeiUaa of trade-related performance require- 

■toOB forei^ inveatment; and 

K pcadicee which are inconsistent with international 



In *«**■ iiiininj the United States position on reauests for 
dnwing under Fund programs, the Secretary of tne Treas- 
II tKk» nil] account of the pi ogiees countries have made ij 



ig targets for eliminating or phasing out the practices 

to in BObaection (b) of this section. 

1 the event that the United States supports a request for 
: ^ a country that has not achieved the Fund targets 

to audi practicee apeciTied in its program, the Secretary of 
aamy dwU report to the appropriate committees of the 
■ the reasMis for the United States position. ". 



yGoot^le 



PUBLIC LAW 98-181— NOV. 30. 1983 
XKFORn TO ooNOBm 



"Sic. 50. (a) T^m National Advuory Council on Int«matioiMl 
Monetary and Fbiancial Policies ihall include in tta annnal reporti 
to the Congren— 

"(1) a atatement listing all appraiaal report* whidi liK*e iMen 
circulated during the prececung year within the Bank for 
project aasiitance which would ect^liah or iKaiw the capac- 
ity of any country to produce a commodity tor export, if— 
"(AJ nieh commoittj is in nirplua <m world manata «r i* 
likely to be in nirplua on world market! at the time the 
reaulting productive capacity ia expected to bacome opera- 

"(B) luch project aniBtance will cauaa matarial it^ury to 
United States producers of the Hune, cimilar, or compMinf 
commodity, 

"(2) a review of succeM in reducing or elimlnatiBg impart 
reatrictiona and unfair export subaidiea iriiich have been detei^ 
mined to be inconaistent with international agreementa, and 
which have a aerioua adverae impact on the United Statea, or 
any other raember'a, exporta or employment; 

'^(3) a study for the fiacal year 1934 report of the impact on the 
United Statce steel and copper induatriea ot atwl and copper 
aubaidiea by nationa who are borrowets from the tvmii 

"it) a review for the fiscal year 1984 report nsardinc p rograai 
achieved in reaching the goal of eliminating allprad^tMy agri- 
cultural export Bubaidiee which might reeult in tlta reduclieB of 
other member countriea' exports as set forth ir 



"(5) copies of the analyses and any written i 
prepared by the Secretary of the Treasury pursuant b 

tiona (bX2) and (c) of iection 45 and a statement datK .. 

IB and progress made in carrying out the raquirementa d 
" iB<a)andai)ofBe " 



"(b) Not later than one year after the date tt the enactment of this 
section, the Secretary irf the Treasury shall transmit a report to tha 
Congreaa on the operation of Uie international monetary and finan- 
cial ayatem, including— 

"(1) findines of the Secretary of the Treaaun, the Chairmas 

of the Board of Governor* ot the Federal Reanva, and tha 

Secretar; of State regarding consideration of United Stalaa 

membership in the Bank for International Settlementa; and 

"(2) proposals to improve the floating exchange i«ta systenL 

"(c) Not Later than one year after the date of the enacbnent cf thia 

section, the Secretary of the Treaaurjr shall transmit a report to the 

Congnas with respect to etrengthenmg the role and improving the 

operation of the International McmMiry Fund, in * 



"(1) ways to maintain realistic, market-deteRniBad andbaaM 
rates with other m^Jor currendea and lecommendatlaaa ngara- 
ing what con be done t« avoid exchange rate manipulation, b 
particular, auch report ahall axamine tha poUdsa at m^Jor 
trading partnera which (A) maintain a aubatantial trade suiplns 
I) encourage export of capital to 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

nch an extent that czchanse rata do not appear to reflect 
adhutmeDta faai«d on trade pattern* alone; 
W a review and analyaia of— 

"(A) the ability of the Fund to promote real economic 
gni|wth and auBtained, Doninflationai? recovery, pursuant 
to ita mandate in article 1 of the Articles of Affreemeiit of 
the FubA, in couatriea which enter intii stabilization pro 
grama with the Fund: 

"(B) the feasibility of the Fund issuing securitiea in the 
^ivate capital markets as a means of increasing its 
reaouieea, either in lieu of, or in addition to, future quota 
incraasM, together with an evaluation of how luch borrow- 
ing would ainct the credit marketa of the United States; 

^lO the feasibility of returning all or part of the Fund's 
gold ree cr r w to Fund members or of selling the Fund's gold 
r eeervi w in the inivate markets in an effort to raise capital; 

"(D) the feasibili^ of aatabliahing temporary, supplemen- 
tal fin«nfii<g facilitiea at the Fund; 

"(E) the feasibility of eatablisbing a Gold Lending Facility 
where^ the Fund would lend gold to Fund memoerB who 
would in turn use such gold as collateral for commercial 

"(F) recommendations for amendments to the Artielea of 
Agreement of the Fund, if any, to improve the role of the 
Fund in the international monetary system; and 

"(G)tbeeffect on (i) the market price of gold, (ii) countries 
whoae central banks maintain reservea in the form of gold 
and (iii) credit markets of the United States as a result of 
taking any of the actions described in subparagraphs (Q, 
(D), or (E!) of this paragraph; 
"XSi actions which have been taken to carry out the provision* 
«f taction 33 of this Ac^ 

"^a progress made in implementing section 46 of this Act; 
tS) a itiuijr on the past and uitential impact of Fund loan 

> > — gm^ ^g^ world oil prices, such study to be done in 

with the Secretary of State and the Secretary of 

"(A) of whether under present circumstances a system- 
atic restructuring and stretching out of developing country 
debt should be ctmducted; 

"(B) regarding the role global recovery will play in solv- 
ing the debt crisis and wnat interim financing meeaures 
RHV have to be taken for those countries which have no 
poasttHlity of eontinning to service their debts even in the 
•fentof a vigorous economic recovery; 

"(Q of whether the Fund, which is increasingly being 
taad as a source of credit to finance balance of payments 
datlcita, haa adaqato resources te cover all conceivable 
nqussta for credit extensions taking into account the quote 
iacrs as e ctmaantad to under section 41 of this Act; 

•\D) regarding what role the United Sutes Government 
■esa for the Fund in providiiu fmance and credit to the 
least devvloped countries who have such a limited capacity 
to borrow to finance paymente deficite; and 

"(E) pursuant to the agreement at the Williamsburg 
Summit outlining what progress has been made in the 



yGoot^le 



1983. 

.2 use 3901 



PUBUC LAW 98-181— NOV. 80, 1983 



coiuultatioiu among finance ministen and the managing 
director of the Fund on the conditiona for improring the 
international monetary system; and 
"CI) establishing collection, review, comment, and reporting 

procedures within the Fund as provided in aecUon 42 of this 

Act.". 

TITLE Dt— INTERNATIONAL LENDING SUPERVISION 



DBOAEATIDN or POUCV 



Ssc. 902. (aKD It is the policy of the Congrees to assure that the 
economic health and stability of the United States smd the other 
nations of the world shall not be adversely affected or thr«atciied in 
the future by imprudent lending practices or inadequat* 



(2) This shall be achieved bv strengthening the bank regulatory 
framework to encourage pruoent private decmoiunsiking and ^ 
enhancing international coordination among bank r^ulatory 
authorities. 

(b) The Federal banking ax^ciee shall conmilt with the bunking 
supervisory authorities of other countries to reach understandina 
aimed at achieving the adoption of effective and consisteat supervi- 
sory policies and practices with respect to international lending. 

nsFiNrnoNa 

Sbc. 903. For purpoees of this title— 

(1) the term "appropriate Federal bankiiw agenn" has the 
same meaning given such term in section 3(i^ of uie Fedeml 
Deposit Insurance Act, except that for purposes of this title neb 
term means the Board of Governors of the Federal Susjn 
System for — 

(A) bank holding companies and any nonbank auhsidiBrT 



(B) Edge Act corporatioi 



nixed under section 2S(a)af 



12 use 611-631. the Federal Reserve Act; and 

(Q ^reement Corporations operating under section 26 of 
12 use the Federal Reserve Act; and 

601-6M* (2) the term "banking institution" means— 

(AXi) an insured bank as defined in section 3Ch) of the 
12 use 1813 Federal Deposit Insurance Act or any subsidiary of an 

insured bank; 

(ii) an Edge Act corporation organixed under section 25(a) 
of the Federal Reserve Act; and 

(iii) an Agreement Corporation operating under section 
2& of the Federal Reserve Act; and 

(B) to the extent determined Inr the appropriate Federal 
banking agency, anv agency or branch of a fbieign bant 
and any commercial lending company owned or cantrollaa 
by one or more foreign banks or companies that control • 
foreign bank as those terms are denned in the Interna- 



yGoot^le 



PUBUC LAW 98-181-NOV. 30, 1983 97 STAT. 1279 

inking inatitution" 12 use aUH 



nuNQTBKKBD lUpnvtnoN or inteiinational lending 

Sk. 904. (a) Bad) Appropriate Federal banking agency shall evalu- 
rit banking jnrtitution foreign country exposure and transfer risk 
buae in barring inatitution examination and supervision. 

(b) Each nich agency ahall establish examination and supervisory 
{ncadurea to asnire that factors such as foreign country exposure 
•nd transfer risk an taken into account in evaluating the adequacy 
rfthe capital of banking institutions. 



8k. 905. (aKl) Each appropriate Federal banking agency shalJ 
rsfuii* A banking inatitution to establish and maintain a special 
nssrra whenever, in the judgment of such appropriate Federal 
tanking agency — 

A) the quality of such banking institution's assets has been 
impaired by a protracted inability of public or private borrowers 
ia a forei^ country to make payments on their external indebt- 
ednesB as indicatedhy luch factors, among others, as— 

(i) a failure by such public or private borrowers to make 
full interest payments on external indebtedness: 

(ii) a failure to comply with the terms of any restructured 
indebtedness; or 

(iii) a failure by the foreign country to comply with any 
IntematioDBl Monetary Fund or other suitable adjustment 
program; or 
(B) no definite prospects exist for the orderly restoration of 
d^ service. 
D Soch reaerv«a diall be charged againe 
dhall&ot be considered ai part of capital and 



m Hw api»vpriate Federal banking agencies shall analyze the 
■■olta of foreign loan leacheduling negotiations, assesB the loan loos 
JbA nflected in ivacheduliiu agreements, and, using Uie power* set 
fcrth in aaction 908 (ragarding capital adequacy), ensure that the 
rngtUl aad reaerva |MaiUons M United States banks are adequate to 
mtmmnntitAmtm potrotial losses on their foreign loans. 

(c) Th» •pfwopriata Fadaral banking agencies shall promulgate 
~~ ~ * ' 'nm w orders necessary to implement this section within one 
I and twenty days afur th* date of the enactment of this 
BUa. 

AOOOUNTINO FOB PUS ON INTERNATIONAL LOANS 

Sk. 906. (aXl) In order to avoid escesaive debt service burdens on 
Utor countries, no banking inatitution shall charge, in connection 
■itb tba reatnicturing of an intomational loan, any fee exceeding 
ft* ■dministrativa cost of th« restructuring unless it amortizes such 
la orar the effective life of each such loan. 

(ZXA) Each appropriato Federal banking agency shall promulgate 
■d regulations aa ara necessary to further carry out the provisions 
tfthksi' 



yGoot^le 



97 STAT. 1280 



PUBLIC LAW 98-181— NOV. 80, 1983 

(B) Hie requirement of para^aph (1) diall take efTact oa tha data 
of the enactment of this aection, 

(bXl) Subject to subsection (a), the appropriate Federal banking 
agencies shall promulgate regulations for accounting for agtacj, 
commitment, management and other fee* charied iy m y^rAinf 
institution in connection with an international loan. 

(2) Such regulations shall establish the accounting treatment of 
such fees for regulatory, Bupervison, and diaelomire purpnaes to 
assure that the appropriate portion of such fees is accrued in inoooM 
over the effective life of each such loan. 

(3) The appropriate Federal banking agencies shall promulgata 
regulations or orders necessary to implement this subsection witUn 
one hundred and twenty days after the date of the enactment of lUi 
Utte. 



CXlLLBCnON A 



] DiacLoauBC op cutTAtN intsbmatiohal UNnNO 



Sac. 907. (a) Each appropriate Federal banking asen^ riiall 
require, by regulation, each banking institution wiui foreifn conn- 
try expoaure to submit, no fewer than four times each calenaaryMT, 
infonnation r^arding such exposure in a format preacribed by audi 
r^Ulations. 

(b) Each appropriate Federal banking agency ahall require, by 
regulation, >*»"'fi"g institutions to ''■f'"ti' to the public infbrmtika 
regarding material foreign country expoaure in relation to anrts 
and to capital. 

(c) The appropriate Federal banking agencies shall promulxats 
regulations or ordera necessary to implement this McUon within ctw 
hundred and twenty days after the date of the enactment of this 
tiUe. 



agency aball 



t:^ establidung minimum levels ot capital for such b 

tions and bf using such other methods as the aj^iropriate Fedtnl 

banking agency deems appropriate. 

(2) Each appropriate Federal banking agen^ ihaU hm tbt m- 
thority to establish such minimum level of capital fbr a baiAiBt 
institution as the appropriate Federal banking asancv, in Ha diKffr 
tion. deems to be necessary or appropriate in lignt of the paitiwilw 
circumstances of the banking institution. 

(bHl) Failure of a banking institution to F»1'<''*»'" capital at or 
above its minimum level as established pursuant to Wibaection W 
may be deemed by the appropriate Federal hanfctng aianqr, in fta 
discretion, to constitute an unsafe and unsound practioe within the 
meaning ofsection 8 of the Federal Deposit Insuranca Act 

(2KA) In addition to, or in lieu of, any otlwr action MiliwriMd bf 
law, including peranai^ (1), the appropriate Pedeivl *"""■> 
agency may issue a directive to a banking institntioB that bOi to 
maintain captial at or above its required level aa eatahlisbed pona- 
ant to subsection (a). 

(BXi) Such directive may require the banking insUtutioo to aubmlt 
and adhere to a plan acceptable to the appropriate Federal bawfclnt 



yGoot^le 



PUBUC LAW 98-181— NOV. 80, 1983 97 STAT. 1281 



3 aired capiU level. 
I punuuit to this paragraph, includ- 
B( ^«ni mbmittod punuant thereto, shall be enforceable under 
ka proriaiona of Mction 8(i) of tbe Federal Deposit Inauraiice Act to 
ka aama aztant as an effective and outstanding order issued pursu- 
nt to aectioo B(b) of the Federal Deposit Insurance Act which has 
iMtDW final 

QDUU Each apyropriala Federal banking agency may consider 
■Alwnkiiv™t>tution'spR]Krassin adhering to any plan required 
ndar tUi wibaectton whenever such banking institution, or an 
^SEmtm theraof, or Ilia holding company which controls such bank- 
H Inatitution, seeks the requisita approval of such appropriate 
Maral banking agency for any proposal wliich would divert eam- 
Bp. Jimiwlnh caiutcl, or otherwise impede such banking institu- 
ioB a nrearess in nchi«viiiK its minimum capital level. 

} Such appropriate Federal banking agency may deny such 
oval wb^ it determines that such proposal would adversely 
t tha abili^ of the tmnWing institution to comply with such 

(O Hts Chairman of the Board of Governors of the Federal 
" ■ ..." • ., -, ^^^ shall encourage 

auUioritiea of other 



SETS.' 



., r *— "fc'-g countries to work toward maintaining and, where 
fpiii|wialii. strengthening the coital bases of banking institutions 
BMl««d In iatamational lending. 

PO«DON LOAN bvaluahons 

he. 909. (aXl) In any case in which one or more banking Inititu- 
■■aaxtcnd credit, whether by loan, lease, guarantee, or otherwise, 
■ktt individually or in the agKre|(Bte exceed* 120,000,000, to 
* "" > any project which has as a mmor objective tiie construction 
~**~nafaByniiningoMration,any metal or mineral primary 

operauon, any fabricating facility or operation, or any 

■afliiiakhn operations (semi and finished) located outside the 
Mlad States or its territtMiea and posswiions, a written economic 
kHftSihr •valuatitm of such foreign jingect shall be prepared and 
qpnina in writing by a senior official of the banking institution, 
m, H BBOt* than one banking Institution is involved, the lead bank- 
Mhislitiilinii prior to the extension of such credit. 
CD Sudi avaluation diall— 

(A) take into account the profit potential of the project, the 
*-T'»^ of the prqject on world markets, tbe inherent competi- 
Owm advMitaceB and disadvantages of the project over the entire 
Uis of the prefect, and the likely efhet of the project upon the 
0«iw»ll kmg-term economic development of the country in 
iriiidi the prqiect is located; and 

(B> eotiaiaer whether the extension of credit can reasonably be 
« ap ac to d to ba repaid from revenues generated by such foreign 
pcqisrt without regard to any subsidy, as defined in inter- 
Manonal a 



tm li M tnii nentality at my country. 
^ftich acooomic nesibibtj' evaluations shall be reviewed by 
*■— -mtativM of the appropriate Federal banking agencies when- 
" n by such appropriate Federal banking agency is 



yGoot^le 



97 STAT. 1282 PUBUC LAW 98-181— NOV. 80, 1983 

(cKl ) The authoritiM of the Federal banking BgeneiM conUioed k 
12 use isis Mction 8 of the Federal Devout Inauranee Act and in section 910 of 

thia Act, except thoM contained in aection 910(d), ihall be applicable 
to thia aection. 

(2) No privata right of action or claim for relief may be pradtcatii 
upon thia section. 

OKNBXAL AUTHOKtrm 

RKulation* or Sk. 910. (aXl) The appropriate Federal banking agandea are 

?^fJS;. »anq authoriied to intarpret and define the tanna naad in th& tttla, and 

li v!^ dwi> ^^^ apprt^niate Federal bonking agency diall preacribe nilea or 

re^lationa or iasue orden aa neceasarj to effectuate the puipcMea of 

thia title and to prevent evasiona thereof. 

|2) The appropriate Federal banking agency ia authoriaed to apply 
the provisions of this title to any affiliate of an inaurad bank. Mt 
only to affiliatee for which it ia the appropriate Federal banking 
agency, in order to promote unifonn application of thia title or to 
prevent evasions thereof. 

(3) For purposes oT thia section, the term "afiiliata" ahall haw the 
12 use 3Tic. aame meaning aa in section 23A of the Federal Reserve Act, except 

that the term "member bank" in such section shall be deamad to 
Tefertoan"inBuredbBnk", as such term is used in aection 3(h) of flis 
12 use 1H13 Federal Deposit Insurance Act. 

(b) "Hie approitriate Federal banking agencies shall establish on- 
' — ~~'~~ka to implement the authoritiea provided under thia lir*~ 



(cXl) Hie Dowen and authorities granted in this title ahaU ba 
■upplemental to and shall not be deemed in any manner to deroBjSta 
from or restrict the authority of each appropriate Federal t»«lHng 



agency under section 8 of the Federal Deposit Insurance Act or any 
other law including the authority to require additional capital or 

(2) Any such authority may be used by any appropriata Ftodersl 
banking a^ncy to ensure compliance by a banldng insUtntioB with 
the provisions of this title and all rules, regulations, or orders issusd 
pursuant thereto. 

(dKl) Any banking institution which violates, or any officer, dirsfr 
tor, emi>loyee, aoent, or other person partici|»atiDg in the coadnct cf 
the affairs of such banking institution, who violates any provison of 
thia title, or any rule, regulation, or order, laaued under thia tiO», 
shall forfeit and pay a civil penalty of not more than $1,000 par in 
Tot each day during which such violation continuea. 

(2) Such violations shall be deemed to be a violation of a fhial 
order under section 8<iX2l of the Federal Depoeit Insurance Act and 
the penalty ahall be assessed and collected by the appropriate 
Federal banking agency under the procedures establiahed by, and 
subject to the rights afforded to parties in, such section. 

oAo AUDIT AtnHORm 

Stc 911. (aKD Under reffulationa of the Comptroller General, tha 
Comptroller General shall audit the appropriate Federal tMwt-itig 
agendea (aa defined in section 903 of thia title), but maj carry out an 
onaita examination of an o^n inauiad bank or bank boldinf 
company only if the appropriate Federal banking agency haa con- 
sented in writing. 

(2) An audit under this subsection may include a review or 
evaluation of the international regulation, auperviaion, and CKami- 



yGoot^le 



PUBLIC LAW 98-181— NOV. 30. 1983 

Mho activitiM of the appropriate Federal banking agency, jnclud- 
V a* coontinatinn of such activities with similar activities of 
HWlatiiij authoritiM of a foreign government or international 



97 STAT. 1283 



_} Audita of the Federal Reserve Board and Federal Reserve 
laksmaj not include — 

(A) trwunctknia for, or with, a foreign central bank, govem- 
tnt of m foreign counti;, or nonprivate international financing 



(K itHSamtioaa, decisions, or actions on monetary - policy 
matten, iiwlinling diacount window operations, reserves of 
wtaAer banks, Mcurities credit, interest on deposits, or open 
nufcat opMatiMw; 

(O tnmiactMiia made under the direction of the Federal Open 



(I9apMtof a discussion or communication among or between 
■'—■*'— ■ of the Board of Governors of the Federal Reserve 
ftnteoi and ofBcers and employees of the Federal Reserve 
^■tem nlaled to subparagraphs (A) through (O of this 

felOXA) &etpt as provided in this subsection, an officer or 
■fktras of the General Accounting Office mav not disclose infor- 
NHn identifying an open bank, an open bank holding company, or 
icwtooMr of an open or closed bank or bank holding company. 

M Hw Oomptroller General may discloee information related to 
kiiAdnof a dosed bank or closed bank holding company identify- 

SB OMtooier of the dosed bank or closed bank holding company 
iWOtB Comptroller General believes the customer had a control- 
taWlnance in the management of the closed bank or closed bank 
Wfaf company or was related to or alTiliated with a person or 
piMaarniig a controlling influence. 

flfjla oSker or employee of the General Accounting Office may 
Ihb ■ coatomer, baink, or bank holding company with an official 
fas appropriate Federal banking agency and may report an appar- 
■ItlMl'i'f' violation to an appropriate law enforcement authority 
rftBtfadtod States Goremment or a SUte. 

fl) Tbia lihaection does not authorize an officer or employee of an 
|^apriat0 Federal '^'"'''"g agency to withhold information from a 
■■itiaa air the Congress authorized to have the information. 
(dOXA) To carry out this section, all records and property of or 
■i fey an ^ipn^iriate Federal banking agency, including samples 
rmpotti flf azaminalions of a bank or bank holding company the 
Mptmller General considers statisticaUy meaningful and work- 
ipan and co r i ea p ondenoe related to the reports shall be made 
~ "a to the Ctnnptroller General, including such records and 
' ' ' g to the coordination of international regulation, 
' ui appropriate Federal 



■Oi Bmper m 
Hi^aad^riM] 



ir copies necessary to carry out a 



IQ Eadi appropriate Federal banking agency shall give t)ie Comp- 
milsi GauOTal suitable and lockable tnlices and furniture, tele- 
hsMS, and access to copying facilities. 



yGoot^le 



PUBUC LAW 98-181— NOV. 80, 1983 

(2) Except for the temporary removal of workpapers of the Comp- 
troller General that do not identify a cuatomer erf' an open or ctoMd 
bank or bank holding company, an open bank, or an open bank 
holding company, all workpapers of the Comptroller General and 
records and property of or Uied by an appropriate Federal banking 
agency that the Comptroller General po ooc a oc a during an audit, 
shall remain in such agency. The Comptroller General ahall prevent 
unauthorized access to records or property. 

■4UAL REPUSENTATION r 



Bory agencies, and as the insurer of the United States __. ._ 
involved in international lending, the Federal Deposit InsursDce 
Corporation shall be given equal representation with the Bosid cf 
Governors of the Federal Reserve System and the Offic* of Iks 
Comptroller of the Currency on the Committee on Banking Regvl*- 
tions and Supervisory Practices of the Group of Ten Countries ami 
Switzerland. 



Trunsmitul u> Sec, 913. Not later than six months after the date of ttie 

^ijeij??' ment of this titie, the Secretary of the Treasury or the app 

\i use i3[d. Federal banking agencies as specified below, shall transmit 

to the Congr^ regarding chan^ to imorove the intemstMOsl ' 
lending operations ol banking institutions. Such report (hall — 

(II review the laws, regulations, and eiamination and 
supervisory procedures and practices, governing international 
banking in each of the Group of Ten Nations and Switaerland 
with particular attention to such matters bearing on ca^tal 
requirements, lending limits, reserves, diaclosure, ezamnHr 
access, and lender of last resort resources, such report to bs 
prepared by the Chairman of the Board of Govenwrs of tl» 
Federal Reserve System; 

(2) outline proeresa made in reaching tiie goal spadftad la 
Abu. p. 12X0 section 908(c), such report to be prepared bv the Secrrtarr of tbs 

Treasury and the Chairman or the Board of GovemorB of tbs 
Federal Reserve System; and 

(3) indicate actions taken to implement this title br tbs 
appropriate Federal banking agencies, including a JusLiIptioB 
or the actions taken in carrying out Uie objectives of ths titk 
and any actions taken by any appropriata Federal banUng 
agency that are inconsistent with the uniform implsmsntatka 
by the appropriate Federal banking agencies of their l a sp s cti ^ 
authorities under this title, and any recommendatioas §01 
amendments to this or other legislation, such report to bs 
prepared by the appropriate Federal hanking agenciee. 

TITLE X-MULTILATERAL DEVELOPMENT BANKS 



Sec. 1001. The Inter- American Development Bank Act (22 U,S.a 
2S3 et seq.) ia amended by adding at the end thereof the followi^ 

"Sec. 31. (aKl) The United Stetcs Governor of the Bank is author- 
ized to vote for resolutions— 



yGoot^le 



PUBLIC LAW 9»-181— NOV. 30. 1983 97 STAT. 1285 

t propowd b]r the Goventon at a apedal 
7 IMS; 

8 before the Board of Govemora of the 

I the authorized capitai stock of the 
Bank and aufaacHptiona thereto; and 

"(ii) an increaae in the reaources of the Fund for Special 
Ooeratiooa and cxmtributions thereto. 
Uuponwloniii 



"Ml m^maOx to 4Z7,396 ahaiea of the increase in the author- 
id ovital stod of the Bank; and 
*VU ContriUilc $350,000,000 to the Fund for Special 



it to make such auhecript 

lod to make such contributions to the Fund 
CCmI Operations shall be effectiTe Onl^ to such extent or in 
mmnta aa are provided in advance in appropriation Acts. 
bi4inler to pay for the increase in the United States aubecrip- 
■d eontributkin provided for in this section, there are author- 
I be ■ p propriateo. without (iscal jwar limitation, for payment 
Sact^arv of the Treasury— 
•tU $S,1&,86Z.744 for the United Statea sufaacriptiona to the 



me. Tbe Asian Derclopinent Bank Act (22 U.S.C. 285 et *eq.) 
pAid by adding at tbe end thereof the following: 

i. tl. (aMIt Tbe United States Governor (rf tbe Bank is author- 22 USC zssi. 
I a^Mcnbe on briialf of the United States to one hundred 
pttne thousand three hundred and seventj-five additional 
icfttte capital stock of the Bank. 

Aqr anfaacription to the capital stock of the Bank shall be 
WB only to such extent or in such amounts as are provided in 
B* in apprcpriation Acta. 

border to pay for the increase in the United States aubacrip- Apfinipriatiaa 
»&■ Bimk pnnided for in suhaection (a), there are authorized ■uiborixatton 
MPopriated, without Rscal year limiUUon, 11,322,999.476 for 
■Iby tfae Secretary of the Treasury. 
UThe Cougnas hm^finds that— 

*U> tba RepuUic of China (Taiwan) is a charter member in 
■d otanding <rfthe Asian Development Bonk; 
*tn the Republic <rf' China baa grown from a borrower to a 
■dar in the Aaian Development Bank; and 
*^(C) the Repuhlic of Cnina prtnidea, throng its economic 
neos, a model for other nations in Ana. 
R ia the aense €f the Congress that— 

*1UU1^rwBn, Republic of China, should remain a fiill member 
the AMn Denclopment Bank, and that its status within that 
rfjr afaouU mnain unaltered no matter how the iaaue of the 
afla'a Republic of China's application for memberahip is 



yGoot^le 



97 STAT. 1286 PUBLIC LAW 98-181— NOV. SO, 1983 

"(B) the Praaident and the Secretaf? of State should upn* 

support of Taiwan. Repubhc of China, Dwku^ it elmar thftt the 

United Stales will not ctnintenanca attempts to expel TaiwsB, 

Republic of China, from the Asian Derelopment Bank; and 

"(C) the Secretary of the Senate and Clerk of the House shall 

transmit a copy of this resolution to the PrMiilent with ths 

request that he transmit such copy to the Bosutl of Oo v i um s of 

the Asian Development Bank. 

Anwi Develop- "Ssc. 28 (aHI) The United States Governor of the Bank is autlM(> 

!^f.'<^«'l "»«1 "> contribute on behalf of the United States 1520,000,000 to Urn 

ri use «i.y. ^^^ Development Fund, a special fund of the Bank. 

"(21 Any commitment to make the contribution authoriaed la 
paragraph II) shall be made subject to obtaining the mil imssij 
appropriations. 
Apprapriation "(b) In order to pay for the United States contribution to ths 

auuiDriiation. Asian Development Fund provided for in this section, there ars 

authorized to be appropriated, without fiscal year '■"■"r'iwi. 
1520.000,000 for payment by the SecreUry of the Treasuof ."■ 

AraiCAM DSVn^PMENT FUND 

Sbc. 1003. The African Development Fund Act (22 U.S.a ZSMtg et 

seq.) is amended by adding at the end thereof the following: 
U.S "Sec. 213. (aXl) The United States Governor of ths F'und b 

™'^".'S[^ 1* authorized to contribution behalf of the United States 1160,000,000 

ii. uw. c*iK- vi. ^ ^^ p^^j ^ ^^ United States contribution to the third r«plnuifa- 

ment of the resources of the Fund. 

"(2) Any commitment to make the contribution authoriMd ia 

paragraph (1) shall be made subject to obtaining the mil ii— ij 

appropriations. 
AppropriBiion "(b) In order to pay for the United States contribution providsd fer 

auihoniation. ^^ ^^ section, Uiere are authorized to be appropriated, withont 

fiscal year limitation, (150,000,000 for payment by the SecretaiT af 

the Treasury.". 



Sk;. 1004. Section 701 of the International Financial Institutioas 
Act (22 U.S.C. 262g) U amended— 

(1) in subsection (aXU. by striking out "consistent"; and 
(21 in subsection (gXI). by striking out "The Secretary gf ths 
Treasury, in consultation with the Secretary of State, shsll 
report quarterly" and inserting in lieu thereof "Not latar than 
thirty days after the end of each calendar quarter, the Seoetaiy 
of the Treasury, in consultetion with the Secretary of State, 
■hall report.". 



Sbc. 1005. (a) It is the sense of Congress that— 

(1) the multilateral development institutions serve an invaln- 
able role in promoting development abroad; 

(21 foreign direct investment, trade, and commercial lending 
make a contribution at least equal to that of devrioptneBt 
assistance in promoting development; 

(3) United States economic interests are vitally affectad fay 
conditions in developing countries; and 



yGoot^le 



PUBLIC LAW 98-181— NOV. 30, 1983 97 STAT. 1287 

4} tlw multilateral development banka already play an im- 
-tut, although indirect, role in encouraging private invest- 

[A) Hie Secretary of the Treasury shall conduct a Btudy of 
B multilateral development inatitutiona could more actively 
■(« foreign direct investment and commercial capital nowe 
aimel such investment and capital flows to developing coun- 
•€ ■ound and productive development projects through the 
f*V^f' Finance Corporation in cooperation with the multilat- 
valopment institutions or throu^ a new investment banking 
atone or more of these institutions. 

I addition, such study shall evaluate whether the multilateral 
■nent in^tutiona could help increase foreign direct invest- 



ha Secretary of the Treasury shall solicit 
from the multilateral development 
vate such comments with the study m a 
to both Houses of the Congress within 
htjm <if the date of the enactment of this se 



and shall 
sport to be trana- 
ne hundred and 



1006. <a] It shall be the policy of the United States that no 
itm, discusaions. or recommendations concerning the place- 
r removal of any Inter-American Development Bank. Asian 
MDent Bank, or African Development Bank personnel shall 
d Ml the political philosophy or activity of the individual 



•fciiig 

»andl 



Secretary of the Treasury shall consult with the Chairman 
[ minority member of the Committee on Banking, 
Urban Anairs of the House of Representatives and the 
on Foreign Relations of the Senate and the relevant 
■ prior to any discussions or recommendations by any 
United States Government concerning the placement 
' any principal oRicer of the Inter-American Develop- 
Asian Development Bank, or African Development 



TITLE XI— IMF APPROPRIATION 



22 use 276c-a. 



1101. (a) Notwithstanding any other provision of this Act. 
I appropriated for an increase in the United Stetes quota in 
teraational Monetary Fund, the dollar equivalent of 
W.ODO Special Drawing Rights, to remain available until 
■d. 

lotwithstanding any other provision of this Act, there is 
rialed for an increase in loans to the International Monetery 
nder the General Arrangements to Borrow, the dollar equiv- 
f 4,250,000.000 Special Drawing Rights less $2,000,000,000 
irihr appropriated by the Act of October 23. 1962 (Public Law 
76 Stat. 1163), pursuant to the authorization contained in 
17 of the Bretton Woods Agreements Act and merged with 
propriation, to remain available until expended. 



22 UST 2><6e-2 



yGoot^le 



97 STAT. 1288 



PUBLIC LAW 98-181-NOV. 30, 1983 



CONDITION or 

Sk. 1 102. (a) The Congress find* and declares that— 

(1) the international banking lyateni is currently 
t^ a series of national financiBl crises; 

(2) the Congress is desirous of finding a solution to tha i 
mooetary crisis which will result in a stable monetaiy 
and preaervation of a liberal intemationnl economy; 

(3) this solution must be found without r'*""g 
pressures on United States credit markets; 

<4) the breakdown in the Brettoo Woods monetaiy ^stera bM 
contributed directly to these problems; 

(5) the economic policies prescribed by tha '. 
etary Fund can be harmful to economic growth; and 

(6) the International Monetaty Fund currently ho 
mstely ^0.000.000,000 of uncommitted assets in I 
gold bullion and has rot utilized them MIy to data. 

(b) It is the sense of the Senate that— 

(1) restoration of a stable monetary syst< 



e economic growth and to maintain a liberal intematiaMl 

(2) as a first step toward this restoration the Seerrtaiy «f tht 
Treasury should call for an intamational cMifneoca on flit 
monetary system to investigate its sjrstemic proUema; 

(3) in coping with the current financial crisis, the Intsrt» 
tional Monetary Fund should make fuller uss of its eunWt. 
assets, including its gold holdings; 

(4) tin International Monetary Fund should revise ths eoaA 
tions placed on its loons so as to encourage 



OmtKAL OPBRATTNQ 



for an evaluation of the emergency 

CHAPTER n 
LEGISLATIVE BRANCH 

PAVMSNT TO WIDOWS AND HKIB8 OF DBCEAaKD UEUBXBS OF CC 

For payment to Helen H, Jackson, widow of Heniy H. • 
late a Senator from the SUte of Washington, $69,800. 

Salabies, Officuis and Emplovkis 

oftices op thl uajoiutv a 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

OcmriHOtNT ExFBNSB or nn Senate 

ncscTAK* or tub ssnati 

1 additioiul amount for "Secretary of the Seiute", $60,000. 

GENERAL PROVISIONS 

201. The Saixeant at Arms and Doorkeeper of Uie Senate 
fbn- in thn aection rftfemd to aa the "Sergeant at Anna") 
Ignate one or mora emplojeea in th* OfRca of the Sergeant 
•nd Doorkeeper of the Senate to approve, on hia behalf, all 
% Ibr payment of moneys, which the Sergeant at Artna ia 
«d to approve. Whenever the Sergeant at Arms makes a 
tan nnder the authority of the preoedinK sentence, he shall 
Mij notify the Committee on Rules and Administration in 
of the designation, and thereafter any approval of anv 
, far payment of moneys, by an employee so designated shall 
di design at inn is revoked and the Sergeant at Arms notifies 
inittee on Rules and Administration in writing of the 
Ml) b* deemed end held to be approved by the Sergeant at 
r^ intents and purposes. 

■OS. Any prowisicm of law irtiich is enacted prior to October 
HSd which directs the Serjeant at Arms and Doorkeeper of 
As to dsposit any moneys in the United States Tnaauiy for 
Aa account, within the contingent ftind of the Senate, for 
aiwoua Itema", or for "Automobiles end Maintanance" 
I and after October 1, 1983, be deemed to direct him to 
ntsh moneys in the United States Treasury for credit to the 
within the continfent fund of the Senate, for the "Serseont 
■ImI Doorkeeper of the Senate". 

nS. te) SecUon 106(aX2) of the Legislative Branch Appropri- 
«, 1968 (2 U.S.C. ei-l<2)) is amended to read as follows: 
iw or changed ratesofcwnpensation (other than changes in 



■ST:. 



appointment, transfer from one Senate appointing 
f so another, or promotion by an appointing authority to a 
the coropensntioii for which is fixed by law). In the case of 
ntment or other new rate of compensation, the certification 
racsiTed by such office on or before the day the rate of new 
atioa is to become effective. In any other case, the changed 
eotpsnsation shall take efRsct on tne first dajr of the month 
t tucti certification is received (if such cerUfication is re- 
tthin the first ten days of such month), on the first day of 
Ot aftar the month in which such certiilcation is received (if 
osi irtiich such certification is received ia after the twenty- 
- of the month in which it is received), and on the sixteenUi 
ba month in which such certification is received (if such 
tion is received after the tenth day and before the twenty- 
f of such month). Notwithstanding the preceding sentence, 
«tifIcation for a changed rate of compensation for an em- 
paciiSas an effective date of such change, such change shall 
affisctive on the date so specified, but only if the date 






is the first or sixteenth day of a month and is after the 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

efTective date procrlbed in the prsCBdinK Mntence; and, notwitb- 
itanding Buch sentence and the preceding provisioii* of this mi- 
t«nce, any changed rat« of compenaation for a new employee or an 
employee transferred from one appointing authority to anatber 
shall take effect on the date of nieh employee'! appointment or 
transfer (as the case may be) if such date ia later than the effective 
date for such changed rate of compensation as preacribed by tuA 

(til The amendment made by subaection (a) ihall be applicable In 
the case of new or changed ratea of compenaatjoniriuch art certifiMl 
to the Disbursing OfTice of the Senate on or after Jannanr 1, 1961 

Sic 1204. (a) The fifth sentence of subeectioD (e) «f •ectiaa 606 of 
the Supplemental AmmniriationB Act, 197S Q VS.C. S8M) li 
aroendeid by atriking out or Hinoritv Whip" and hiiiliin ia lias 
thereof "Minority Whip. Secretary or the QmferencaoT the Major 



S use S8 nou. g^g^ of expenaea incurred or chaig** impoaed oa or after October 1, 

1963. 

2 use 58a. Sbc 1206. (a) The Sergeant at Arms and Doorkeeper of the Senate 

shall hiralah each Senator local and loag-diatanca teiaoommunica- 
tiona aervicea in Weahiogton, District of ColumUa. la aoeordanea 
with regulationB prescribed by the Senate Committee oa Rtilaa and 
Adminiatration; and the casta of such aerriee shall be paid out of tba 
contingent ftmd of the Senate from moneya made available to hta 
fbr that purpoae. 

Repeal. (b) SubeecUon (g) of eection 112 of the LegislatiTC Brand) Apfn- 

priaUon Act, 1978 (2 U.S.C 68a) ia repealed, eRectiTe on the firat d«r 
of the first calendar month which begina more than thirty days after 
thedateofenactmentof this Act 

HOUSB OF BSPUSBNTATIVn 

For payment to Kathryn Jackson McDonald, widow of HoDOcabla 
Iattv McDonald, late a Repreeentative from the State of Georgia, 

«9,gr- 



Rauju 



D AcoouNiTOO Fuotan^ Boaid 



For aalarlei and expenses. Railroad Accounting Prindple* Boaid, 
$50,000, to be expended in accordance with section SOZW at Publk 
Law K-448 (49 U.S.C 11161-11168), subject to the e 
authorizing legislation. 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1988 97 STAT. 1291 

CHAPTER m 

KPASTBIENT OF THE INTERIOR 

BuaxAu OP Rkxamation 

ootnnucTioN PROCSAU 



DMmo at the Ymw R 

■adated wiUi the n 



MtwHlj 



NiTsable and constructed feature* will be 
a Valley Water Uiera Association for oper- 

department of energy 

1 Supply, Rbiabcm and Dkvxlopuknt Acttvities 

t for "Energy Supply, Research and 
I renuun available until expended, of 
le available to implement the four atoll 
n aection 102 of Public Law 96-205 and 
uction and operation of a second email 
r tol*r mergy prc(ject on the island of Molokai, Hawaii. 

Atomk Enbxot DcPENSt Acnvrms 



il amoont for "Atomic Energy Defense Activities", 

ftp Pnjact Tf-13-r, $G7,000,000, to i«main available until expended. 

Of Um fnnds ■ppr^riated for "Atomic Energy Defense Activities" 
in Pablic I'w 9»-«0, an amount shall be made available to purchase 
4^1itwnBl helkaplera. 



tnUnMATION OP TK> UBI OP CBTTAIN BESPAQI B 



Sscntaryi 
(ift 



. . to tennioate, within 24 months after the date of enactment 
of Ihii Act tbe use of seepage basins associated with the fuel 
" ' " ■ at the Savannah River Plant, Aiken, South 



(S to aubmit to the appropriate committees of Congress, 
'thin G months after the date of enactment of this Act, a plan 
* the protactkm of groundwater at the Savannah River nant 
ud) dialt include — 

(A) propoaed methods for discontinuing the use of seepage 
baainB siw inlml with the materials processing areas; 

(B) provisions for the implementAtion of other actions 
sqipropriate to mitigate any significant adverse effects of 
OD^aite or off-site groundwater and of chemical contami- 
nants in seepage baniu and adjacent areas, including the 
rcmov*] of such contaminants where necessary: and 



37-922 0-84-10 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1988 

(C) provisions tor continuinK the expanded nHmitorinK 
program of groundwater impacts involving the appropriate 
South Carouna agencies in accordance with the rtatutixT 
responsibilitiea of such agencies. 



Of the funds appropriated for "Atomic Energr Defense Activitiss" 
in Public Uw 98-50 for Project 82-D-109, 16S mm artUlary find 
atomic projectile, SQO.OOO.OOO ai« leaciuded. 

NucLKAB Wastb Disposal Fund 

For an additional amount for "Nuclear Waste Disposal Fund", 
$12,000,000, to remain available until expended, to be derived fron 
the Nuclear Waste Fund. To the extent that balancea in the (Und 
ate not sufficient to cover amounts available for obligatjon in this 
account, the Secretary shall ezerciBe his authori^ pursuant to 
section 302(eKS) of Public Law 97-425 to issue (d>ligations to the 
Secretary of the Treasury. 

INDEPENDENT AGENCIES 

Appalachian RaotoNAL Cotof nsiON 

Funds AppaopuATcn td thk PsasnnNT 

APPALACHIAN BKllONAL DXVILOPtaNT PKOGKAMS 

For an additional amount for "Appalachian Ra^onal Devdop- 
ment Prozraras", $9,400,000, to lemoin available until expended, fct 
the Appalachian Development Highway System. 

GENERAL PROVISIONS 

Sac. 1300. No part of the funds appropriated under this Act <»' any 
other provisions of law may hereafter be need by the Depstftment of 
Justice to represent the Tenneeeee Valley Authority in litigation in 
which the Authority is a party unless the Department is i«questsd 
to provide representation in such litigation by the Authori^. 

Sec. 1301. Within funds available to the Corps of Englneara— CMl 
for Operation and Maintenance, General, not te exceed $2,000,000 
shall De used to rehabilitate, restore, and reftirbiah the Carpi of 
Engineers dredge vessel Kennedy, te transport the vessel to New 
Orleans, Louisiana, and there to operate, maintain, and disidar the 
veaael for the duration of the 1984 Louisiana World Expcaitioa. Sudi 
operation, maintenance, and display shall include the pr^Mration 
and use of audio-visual and other exhibits to inform the public of 
Corpe of Engineers water resources activitiee. 

Sac 1302. The Secretary of the Army is authorind, tor a period of 
two years beginning with enactment of this Act with the concur- 
rence of the Director of the National Park Service and the South 
Florida Water Management District, to modify the schedule for 
delivery of water from the central and eouthem Florida prqject to 



yGoot^le 



PUBUC LAW 98-181— NOV. 30, 1983 

. _ D for the delivery of water to the Everglsdei 
NationAl P»ik frna auch project for the purpose of determining an 
inproved KlMdule for *uch delivery. 

nw Socretaij of the Army ia further authorized to acquire such 
mteraat in land* cun«titly in agriculture production which are 
> d» W Blyff«ctwHy any modification of schedule for water delivery 
la &witfadw NatioDal Park under the preceding paragraph, "nw 
Been^mrj AM acquire any interest in land at the fair market value 
of auch intereat baaed oo conditions existing after the construction 
of tbe prqinct lieaLiiLuJ in the preceding paragraph of this section 
and farfsiV any loadification of auch delivery Mhedule. The Secre- 
tai7 ia atao autboriBsd to conatruct necesBary flood protection meas- 
nraafcr imtactioa of homea in the area affected by any modification 
if auch delivuT schedule, at an estimated cost of {10,000,000. 

Sac 1303. Tha Secretary of the Army, acting through the Chief of 
bfuMOia, ia directed to utiliie available construction general 
apfrapriatiana lo eoiopMt bank protection works at Wheeling 
faland, Weat Virginia, m tin Hannibal Lock and Dam pool, at an 
-^■— '"^ coat of 1136,000 and to complete the local Rood protection 
prqiect at HiiweU, Kentucky, at an estimated cost of $600,000. 

Sac 1304. The Secretary of the Army, acting through the Chief of 
" ' 'B, is directed to utilise available general investigation funds 
m a study nl altemativea to the Mentone Dam of the Santa 
instem pnijact in California and the flood control study of 
the niinMa River ba t wee u Henry and Naples, Illinois. 

Sac 1305. Funds available or hereafter made available for the Red 
Biwer Waterway P ro j ect shall be used to provide for construction of 
a Ugh level replacement bridge for the Louisiana and Arkansas 
Idway Company ttear Alexandria, Louisiana, pursuant to an 
apatiiisirt between the Cbitt of Engineers and the Railway Com 
HBj and upon tcnna and conditions acceptable to the Chief oi 
BVDoen in tha interest of navigation and tiie expeditious proeecu 
tion of the Prcgect. Federal costs of the bridge replacement, includ 
■g deaign and constniction, shall be limited to (24,270,000 (July 1, 
IttS prioa levda^ with an adjustment to this amount, if any. as may 
bainalified by reason of a fluctuation in the cost of construction as 
i«acatad by the Bnginesr News Record's applicable construction 
tadieaaiplus the ooat of neceasary teal estate interests to be acquired 
b* dta Omp* of Engineers, whidi interests may be conveyed to the 
Rdaraj CHBpany. 

Sac 130& Section lie(a) of the Rivers and Harbors Act of 1970 
(PabUe I^w 91-611) is amended by adding at the end thereof the 

*^Mae areas of the river between Howard Street and Cald- 
well Avenue in Nilee, Illinois, that have aocumutated silt and 
ing should be excavated to the normal align- 



yGoot^le 



97 STAT. 1294 PUBLIC LAW 98-181— NOV. 30, 1988 

CHAPTER IV 

DEPAKTMENT OF THE INTERIOR 

FISH AND WILDLIFB AND PARKS 

UNimt Statcs Fish and Wildutb S^nnci 

tnouBCB UANAOKMam 

For an additional amount for "R«aource n 

National Park Srvio 



Fund* appropriated to the National Park Service under thia head 
in Public Law 97-394 shall be available to reimbune the Estate of 
Besa W. Truman for operation expense*, including maintenance and 
protection, of the Kan? S Truman National Historic Site incurrad 
during the period October IS. 1962 through December 27, 1982. 

coNsntxnioN 

Notwithstanding any other proviiion of law, •action 4 of the Act <rf 
October 26. 1972, as amended (86 Stat 1181; 16 U.ac 43ac note), ii 
amended by striking the numeral "9,327,000" and inserting in IwB 
thereof'10,500.000'T 

LJUaO ACquiSmON AND STATC ASBISTANCI 

For an additional amount for "L^nd acquisition and Stat* aarial- 
ence", |25.500,000, to be derived from the Land and Water ConsM^ 
vation Fund and to remain available until expended. 

OmCK OP SUKTACS MlNINO RSCUUIATION AND EnPCSCIKMNT 
ABANDONED MNB aaCIAJUTION njND 

For an additional amount for "Abandoned Mine RnrlamaHnn 
Fund", (42,000,000. to remain available until expanded, to ba 
derived from receipts of the Abandoned Mine Reclamatian Fund to 
provide for the acquisition of private homes and bunnsasss and 
nonprofit buildings occuoied or utilized eontinuouslj rinoa Sa pt am- 
her 1, 1983. and the lands on which they are located, ""^I'l^'ny all 
mineral interests, and the relocation of families and iudlviduala 
residing in the Borough of Centralia and the Village c^ Byrneavills 
and on outlying properties who are threatened by the [iimisssive 
movement of the mme fire currently burning in and around the 
Borough of Centralia: Provided, That all acquisitions made hy the 
Commonwealth of Pennsylvania under the authority pr w ided 
herein shall be at bir market value without regard to mine An 
related damages as was properly done b^ OSM in its prior acquiai- 
tiona of Centralia properties. These activities must comply with tbs 
Uniform Relocation Assistance and Real Property Acquisition Poli- 
cies Act of 1970 (42 U.S.C. 4601, et seq.). but shall not constitute a 
iDRJor action within the meaning of section 102(2Nc) of the National 
Environmental Policy Act of 1969 {42 U.S.C. 4332>r Atwittef furOter, 



^Coo<}^z 



PUraJC LAW 98-181— NOV. 30. 1983 



niat no Ibiidi mmyte OMd to pay for the actual a 

~ lidal further, Tliat the Federal discretion- 
d 75 percent of the cost of such acquisition 

id further. Hut any funds remaining available 

, a «f Ifaese acquintian and relocation act' '"" 

■nf be made available to the Commonwealth of Pennaylva 



■f further, lliat funds made available under this head to the 

jdwealUi of Pcnn^lvania shall be accounted against the total 

Ptakral aiul State ahare funding which is eventually allocated to the 

BuBKAU or Indian ArrATU 



_ . amount for pre-kindeigarten programs, 

NotwitlMtanding the pnrrisions of Public Lsw 9T-25T, the funds M Stat $1« 
mmpriatod therein under this head for transfer to the State of 
Utt^M shall remain available until expended and may be used for 
neooatruction of day schools formerly operated by the Bureau of 
^^■w Affaira. 

GnraKAL I'aoviBioNa 

Funds available to the Department of the Interior and the Forest Pnvawi^ own 
kvke in fiscal jear 1984 for the purpose of contracting for aervicss ^^^^' 
ttMt ivquire the utilisation ol privately owned aircraft for the conincu 
tMiia(e of caign or fm^t shall be used only to contract for aircraft 
Itit aic certifiad as airworthy by the Administrator of the Federal 
AvjstioD Adminiatntion as standard category aircraft under 14 
(ra Zl-183 unless the Secratar; of the contracting department 
islw III! lias that such aircraft are not reasonably available to con- 
fact such services. 

a (d) of seetian 109 of the Act entitled "An Act making 
M for tlM Department of the Interior and related agen- 
(M far tlM fiscal year anding September 30, 1984. and for other 
■uipuaua" (Public Law 98-146), b amended by striking out "The Anit. p. 936. 
*"'^r*''" with xfud to this subwction on the use of funds shall 
BOt nply if any nal»«wned tide or submeixed lands within the 
maaMcribad in this subsection are now or hereafter subject to sale 
sr Isaaa for the extraction of oil or gas from such State lands; and" 
■id inant in lieu thereof "The limitation with regard to this 
■dasctiaa on the use of funds shall not apply to submerged lands 
withia SlVoautical miles off any Florida land mass located south of 
n JigrBSi north latitudr, and". 

DEPARTSIENT OF ENERGY 

foma. Enekct BnuKCH and Dxvelopment 



yGoot^le 



PUBUC LAW 98-181~NOV. 30, 198 
SMrmsoNiAN Inritution 

SAlAKltS AND tXnSKT NATIONAt. OALLKIT 



CHAPTERV 

UNITED STATES RAILWAY ASS0CUTI(»4 

Adhinistrattvi ExpsNsn 

The CongresE disapprovM the proposed deferral of budget author- 
ity in the amount of $2,050,000 tor Um United States Railway 
Association (deferral numbered Da4-20), a* set forth in tha Presi- 
dent's special message which was transmitted to the Congress m 
Otiober 3, 1983. This disapproval shall be efTective on the date <i 
enactment of this Act and the amount of the proposed deferral 
disapproved herein shall be made available for oblation. 

CHAPTER VI 

DEPARTMENT OF AGRICULTURE 

FsDBRAL Grain iNSPscnoN Soviet 

INBPBCnON AND WDCIHINQ BnVICKB 



lished under section T(jXl) of the United States Grain Standards AO, 



For expenses neceaaary to recapitalize the revolving fuitd si 
lished under section 7ljXl) of the United S( ■ " ■ "- • • 
M amended a U.S.C, 79ljXl», 16,000,000. 

Food and Nutxition Scsvicb 

Effective on October 16. 1983, and until April 16. 19g4, tha Sscrs- 
tary of Agriculture shall not reduce or witAhold reimburacnnenllh 
shall not collect or attempt to collect hinds from an institution, its 
parenta. affiliates or Buccessors, and shall not otherwiss aflM an 
Institution's participation in' the child care food program (42 U.8.C 
1766), where the Secretary's claim relates to payments ouds In Ns« 
York during the period January 1. 1975, through December SI, 19TB, 
by the Secretary to the institution as a perUcipaQt in the child car* 
food program. 

AoRicuLTitaAi. Stabilization and CoNsnvAiioN S^mcs 

cunomcv consuivation pkoobau 

For an additional amount to carry out the emergra^ conser**- 
tion program authorized by title IV of the Agricultural U«dit Act «f 
1978 (16 U.S.C. 3201 et seq.). $7,000,000, to remain available until 
expenided. 

Donation or Ckstain pKOpnrr 



tion, the land, buildings, fadlities and equipment at the Unites 



yGoot^le 



PUBLK; law 98-181— NOV. 30, 1983 97 STAT. 1297 

A of Agncoltiire P1«iiit Introduction Station, eom- 
Bonlj known ■■ Bamboo RcaMich Station* in Savannah, Georgia, to 
^_ '■-■■ ' • — ■-■^-s, UnivoMJty of Geotjia. 

CHAPTER Vn 

DvAxiMKNT or Bducaiton 

HKlHEa mUCATION 



TITLE n 
GENERAL PROVISIONS 

Sk: 8001. No part of wiy appropriation ooBtainod in this Act shall 
MBMin avaOabb for ^MigrUm bejond September 30, 1984, unlcaa 
•nmirijao nnwided harain. 

mc 8002, NotwitfaatandinK anj other provision of law, the terms 
"■aat" and "meat find pnoneta" as naad in the Prompt PayineDt 
Act (Public l«r 97-177; 96 Stat 85) in aection aaXZKBKi) thereof 
iball indude also adibla frorii or froMn poultry meat, perishable 
isnitnr ma rt Ibod pvodocta, fiiMb eggs and perishable egs products; 
Md tbe SetTetai7 of Agnenltura, out of Rinds available to the 
rMsanndilj Oradit Oirpondioa. npon proper proof of low, shall pay 
lalilaiiiliin daima for loaaea nsulting tntn the 1980 embargo on 
■ba at ^ncnltttral flommoditiw to tbe Soviet Union sustained by 
taiBaaaea dealing in pork and fracan hog carcassea as well as edU)le 
felA or froaen ponltij meat, pttiahahle poultry meat food products, 
huh eg> and pwritftaMe egg products. 

S^ 2003. (a) Section 4or tbe Act entitled "An Act to save 
hjti^i and to provide standard time for the United Statee", 
nd Hatch 10, 1918 (IS VAC 263). is amntded— 
(1) by ^'^fc'''^ oat "Yukon" and inserting in lieu thereof 



(D br striking out "Alaska-Hawaii and 
ttarMS lEiawMlrAleutian"; and 
QD br striking out "Bearing" and inserting 



e to Yukon standard time in any law, regula- 

L, record, or other paper of tbe United States 

d considered to be a rderence to Alaska standard 

09 Any nfeiBice to AIsAa-Hawaii standard time in anv law, 
' " ' record, or other paper of tbe United 

' to be a reference to Hawaii- 



(8>Any . _ 

BdocuMnt, neord, or other paper of the United Statee shall be 
and Goaadend bi be a tefnence to Samoa standaid time. 
fe) The Rsciaaal RaU RMirganiiation Act of 1973 (46 U.S.C. 701 et 

a) by striking from section 201<e) of such Act "1983" and 
iiMartiiv in Um thereof "1985"; and 



ood produci 
II use 390; 



yGoot^le 



PUBLIC LAW 98-181— NOV. 30, 1988 

(2) by Btriking from section 308(cXl) of Buch Act "1983" and 
inaerting in lieu thereof "1985". 
Sec. 2004. It is the sense of the Senate that the United States 
Armed Forces engaged in military operations in Grenada are to be 
commended for their rescue of United States citizens on that island, 
and for their valor, success, and eiemplary conduct in battle, which 
has been in the highest traditions of the military service. 

Sbc. 2005. (a) Section IT of the Railroad Unemployment Insurance 
Act is amended — 

(1) in subsection (bX2), by inserting ", or the benefit year 
beginning July 1, 19S3" after "July 1, 1982"; 

(2) in subsection (el, by striking out "June 30, 1983" and 
inserting in lieu thereof "June 30, 1984"; and 

(3) by amending subsection (f) to read as follows: 

"(fXl) For purposes of this section the term 'period of eligibility' 
means, with respect to any employee for the benefit year beginning 
July 1, 1982, the period beginning with the later of— 

"(A) the flrst day of unemployment following the day on 

which he exhausted his rights to unemplojiment benefits (as 

determined under subsection (bU in such twnefit year; or 

"(B) March 10. 1983, 

and consisting of five consecutive registration periods (without 

regard to benefit year); except that for purposes of this paragraph, 

any registration period begin nine after June 30, 1983, and before the 

date 01 the enactment of the Supplemental Appropriations Act, 

1984, shall not be taken into account for purpc«es of p«)Tnent «f 

benefits, or in determining the consecutivenesa of registratun 

"(2) For purposes of this section the term 'period of eligibility' 
means, with respect to any employee for the benefit year beginning 
July 1, 1983, the period beginning with the later of^ 

"(A) the first day of unemployment following the day on 
which he exhausted his rights to unemploj'ment benefits (as 
determined under subsection (b)l in such benefit year, or 

"(B) the date of the enactment of the Supplemental Appropri- 
ations Act, 1984, 
and consisting of five consecutive registration periods; except that 
no such period of eligibility shall include any registration period 
beginning after June 30, 1984.". 

(b) The amendments made b^ this section shall apply with reapect 
to days of unemployment during any registration period beginning 
on or after the date of the enactment of this Act. 

(c) Amounts appropriated under section 1021)) of Public Law 98-8 
shall remain available without regard to fiscal year limitation for 
purposes of carrying out the amendments made by this section, and 
amounts appropriated under such section into the railroad unem- 
ployment insurance account in the Unemployment Trtist Fund may 
be transferred into the railroad unem^oyment insurance adminis- 
tration account in the Unemployment Trust Fund as may be nsCM- 
sary to carry out the amendments made by this section (as 



e Hist paragraph under the t: . _ . . 

development grants" in the Department of Housing and Urban 
Development-Kidependent Agencies Appropriation Act, 1981 (Public 
I«w 98-45) is hereby amended l^ striking out the period at Uie end 
thereof, and inserting the following ": Provided further. That any 
unit of general local govenunent which was classlTied as an urban 



yGoot^le 



PUBUC LAW 9&-181— NOV. 30, 1983 97 STAT. 1299 



mint; in fiMsal jtmz 19SS pumunt to iection 102(aX6) of the Hoiu- 
Df and Community DBvelopment Act of 1974, as amended, ahall 
Hotinue to be clasnfied aa an urban county for the purpoeea of the 
iQocatioii of fundi provided therein for fiacal year 1984.". 

Tlii« Act may be cit«d as the "Supplement Appropriations Act, 
1W4". 

Approved November 30, 1983. 



UCaSLATIVE HISTO RV— H.R 3959 (H.R lliH.R Z95T)(S. 695I(S. S69MS. 131DK 
BOUSE REPOarS: No. 9B-m ud pi 

(Comm. 

SENATE REPORTS: No. 98-35 acnompenying S. 

1310. No. 98-1B3 aa»nipanyin« S. S 
Foreign R^tioiu). No. 9^111 accampi 
accomunjiiig S. 695 both from (Corni 
ami Urbui AITunl, and No. 9S-27& i 
IComm, on Appropriationil. 
00NORBS8IONAL RECORD. Vol. 129 (I983h 

June T, 8, 8. 6!>fi conndarad and paned Senate. 
Jub II- IS. H.R. 1 CMuidind and pa»«l Hoiue. 
Jnh ES, as, a, Auc. 3, H.R. ^K^ considered and pssk. 
~id S. 69S, ai "-J ' '- "— 



Sept. 2a, S. 869 ccnuidered and paned Senate. 
Oct e. H.R. S»S9 eoniidend uidf^Hl Hoiue 
Oct- E&^ZI^ onuidcnd and pa WOO SenaU. amen 



■nMndnwnU and in otiwn with amendmente. 
No*. IT, Senate agreed to nmferena report^ concurred in Hoiue amendmenu 

and in another with an amendment. 

Not. 18, HouM coaoimd in Senate amendment. 

WEEKLY CCMPILATIONOT PRESIDENTIAL DOCUMENTS. Vol 19. No. 4H(1983): 



yGoot^le 



yGoot^le 



B. 1959 - Bajsiim and Utaa 
sect ion- by- Sect lar 



tkc «jpp(jrl of I 
ceriiticati 



q-4illf.c.tIor, fa: 



cU»»ific«ti=- as a- ,r=a- 

In liscal year 1933, fcr f: 
ptriod covered By » cospeii 
I«« 1914. A coji-.y s^.s:: 



yGoot^le 



■ ipjljtion growth rate of not loss than 15 percent during 
it recent 10-yeac period measured by applicable eensoBesj 

a combined popjlatlon of not Ipss than 201. Oni. 

as families whose incomes .ti> 'i.>i, i'«[r.;.>.1 30 p-^tcent of the area median 
income. The term "persons of -'eiry low income" means lower Income 
families whos.; incom-s do not PKcepd 50 pavcnt 'if th.f ^cea median 

detei-rnined in the same manno: as fOL S.fCtlon 8 of the 1937 Housing 

Gowernment Bai ldings--Sec . 102(cl detines "bjildiogs for the 

buildings, Stato capitol or office buildings or other faciliti<?fl in 
which government affairs are conducted . 

Metropolitn statistical Areas (><Sft5> and other detetioinations for 

sec. 102(e) st;iK';i Unjjd.j." L.>[«rriny to fiscal years !'»ai-1983. 

Los-^s its classification as ajch to be inc!jd.?d in an urban county 
In any year of thp 1-year cycle. 

Authorization- -Sec. 101 authu;ii-i .Li ippropr la t ion of S3. 468 
billion for each 'of the fiscal years 1984. 19HS, and 1986. 

Statement of Activit !.■■? and Bsluew 

Community Deuelqement Objyctlves--Sec. lOJ(a) states that all 
CIWG grant recipients, beginning inFV 84. describ" the use of funds 
received in Ft 82, and theteaf t-r, lor beginning in FV HS the use of 

meot objecliwes. 

.Pl5l'.c.Be'''.">'--S"C. 10i(b)(l) states that g^ant^.^a shall Furnish 






yGoot^le 





jn Picticipation- 

tlwn^ nr ippcopr 
records regarding 
notice of and op 


3L 


mil 


'■'J^lnll 


araend or mntiiiy 
with the above p 


roced 


j"f 


rtlipi-"f« 


!°^; 


-Sec. 104 


(cKl 


) c 


Comunity Develo[«ient 
M the conmjoity dei/elopm. 
iMjnity development objec 
Uary objectiu« and ceqjl 


"n t" 


iTir 



jroposed . sub- 



• CDBG Program. 



, J CertIfi_catt'>n~Sec. 104(0(41 

11 not attempt to "charge or'assess fees and i 

ipitsl costs of public improvements rjnde<'l in 
th CDBG funds against properties owned by lov 
rsons (including fees made as a condition of 

;ch pjblic improvements) unless CDftr; fjnds art' 



. except for vo.y low 



vacant and Aba 
ovi3es tfiat'va'car 
,to consideration 
tiling Assistance 



U the graf 


itee'i 


pma^a-nmatic ace 


tur» of Chi 


ing< 




.n proqi 


iwe"-oaK 


eMperieno 






: a grai 












hen-f ith. 








thin thrt ji 


.-an' 


tee' 


■s J urn 


id let ion. 


The Secret, 


sry 


shall encourage 










3 of Statf 












icr»tary wii 








a unlfoL-n 


ipoctina. a. 


Id 1 


!val 


luatlnn 


cepo.tin.. 



units of .jereral 
1 and t-pcom.n.:nd tc 
•ping, performancf 



yGoot^le 



L04(f) provides 



fur 



after t 



income for eligible oommunitj' development a< 
require as a condition, jndec the small citi 

income to be used by tne State to fund addii 
development activities, except that the Stal 
dition to the extent such income is applied 

Assistance- -Sec. I04lg) als( 
grantee pioviae reason ' ' - 

permanently 



iced in a revolving 

. recipients nay 
zed after the initu 
■ee to jse program 

,o the State any such 
inal eligiOle communi 

I continue the activi 



lity Eligibility — Sec, 105(a) makes cl 
s, with the exception of buildings foi 
of government, are eligible for COBG funding. 



on on the use oE CDBG funds for publi 
1 under Sec. 105(a)(8)i however, units 
It which used mote than 15 percent at 



s where general conduct of government 
derly Shared Hou sing --sec. 105(d) permit; 



tod of calcula- 



1 for public fflcilil 



,y when developed by neighbor hood- based nonprofit organiiati 
■ lie nonprofit orgamzationa. 



es are carried out by private for-profit entities, and the 
y is identified by tne applicant as principally benefiting lo 
lerate income individuals, the activity shall either (1) be 
out in a noiynbornood consisting predoninately of low and 
come persons and provide essential services tor such per- 
nvolve facilities designed for use predcminately ty low 
e income persons; or (3) involve employment of persons. 



yGoot^le 



153 



AresHlde B«nefita to Low and Moderate Income PijcsoriB — Sec. 
Oil «y also pcowldea that where "an el igible "actiwity isdesigned 
) serve an aioa (jenetjlly and is eleaily designed to meet identi- 
i(d needs of low and moderate Incoiiu? persons in such areas, the 
IBG e-jnds allocated to that aciUity sh^tl ti.> considered to 
Incipally benefit low and moderate income persons IF [1) not 
tt than 51 percent ot the i-i^sidents of such area are persons 
low and mniiiatu income, or 12} the area served has a laryir 
cpoction of not lesa than 75 percent of low and pfLOderstP i ncom-i 
r«ns of the other areas in the jurisdiction of tne recipient. 

eonsld-^red to henefit low and moderate incofne pprsooq only to 



location and Distcibutlon of Funds 

Metropolitan City Consolidation — Sec. 106(a) states that the 
ount det#»XTiiin«^ for a metropolitan city formed by the consolidation 
one or more metropolitan cities with an jrban cojrity should equal 
« SUB of the amounts that wojld have been determined for the metro- 
litan city or cities and the urban county if th" consolidation had 
t occurred. This shall apply to any consolidation that: (1) in- 
jded all metropolitan cities receiving grants In the prior fiscal 

ban county that received a grant in the fiscal year prior to 
nsolidatinn; and (3) occurred on or after January 1, 1983. 

Population Growt h Rate --Sec. 106H) -tlsi piovid'-s that the 
pjla'tion growth rate shall be based on the population of 
) •etmpolitan cities other than ttiose tor which the grant is 
ii^ determined, and (21 cities that were metropolitan citi.-; 
forf incorporation into consolidated governments. in calculating 

Fund ing Real location — Sec, in6(b} states that any city or 
jnty which loses its'funding due to adjustments hy the Secretary 
noncompliance in any fiscal year shall bf oxcla.l^id in the suc- 
[ding year from the calculation of the share of the reallocation. 

s Secretary iday, uiion" r-'quest, transfer the responsibility for the 
linistL-ation of amounts received but not obligjiud by the urban 
jnty to any metropolitan city located within It If (a) the city 
« an included unit of government in the ,:,)unty prior to qualifying 
a Betropolitan city; (b) the amount was designated and received 
the county for use in that city prior to its classification as a 
tropolitan city; and (c) the city and county agree to the transfer 
responsibility. 



yGoot^le 



Nonentitlement Area Ailocacion-'Sec. lOtld) states that 
aisttibjtion of fjnds "in nonerit iclement areas of a State be carried 

trtbjte tantia after the end of fiscal year 1S8* is penoaneot. The 
Secrecar/ shall distribjte the amojnts if a State Has elected not 



-Sec. 106(e) provides 
'ity chosen to meet It! 



Certi fica tion by State s— Sec. 106(f) directs the Governor 
each state tn certify that each jnit of general local gouernmen 

nent and housing needs, includxng the needs of low and moderate 
income persons and the activities to be undertaken to meet thoa 

State shall pay from i ts own resources all administrative exper 

areas, it may deduct an amount not to exceed the sum of SlD2rOQ 

Amounts deducted In excess of 5100,000 shall not exceed 2 percs 
of the total amount received. 

Realloca tion of t 



ived by a State becajse of failure 
to meet tne requirements oi :>ection 104(a) or (b) or because at 



areas of the State or as Che result of a closeout of a grant shall C 
added to anounts allocated to the State in the fiscal year in which 
they become available. 

any State or the Secretary may not distribute funds to any unit of 
general local government located in a nonent t tlement area unless it 
certifies that: (a) it will minimize displacement as a result of 
activities assisted with these funds; (b) the program is conducted 
and administered in conformity with civil rights laws and the 

(c) it will provide opportunities for citizen participation, hearing 
and information on its community development program similar to tha< 
required for entitlement communities! {dl it will not attempt to 
recover any capital costs of public improvements funded in whole or 



yGoot^le 



.ip«!:t with COBG tjnda Ijy flsq.ia^inj t,;,.ri *jjinat (iropactiBS oanad 
■■I occupied by low and nodecatB income psc*)iii, mcjtadin.j fees oi- 
uessuBnCH aa.l'; is .) cundLhion of obtaining acceofl to poblic lupirr 

»i Cut relates to capital coata financed from other cevenue 80iji-( 
r liil in caaea oncept foi" very low income famlllea, Jhi:,-.- th.> 
rinted n.^rt if t'l* t'> the State or the Seccetacy that it lacks sjf- 
ident funda to cnniilutH iti Ci>nr. activities. 

Sec. lOfi(i) statea that in the case whatfi fjo.ls ■.^- ■■<->.ilfici' 
) provide the amounta to which ma tropo 1 i tan cities and urban 
unties are entitled, the Secretary shall ue^t the deficiency 
itOk>gh a pro r^tii reduction of all amounts. If the total amojnt 
■tilable exceeds the lentltleinitnt anojnts fas: citits ami jrban 



Secretar)^' s Discretionary Pjnd — Sec. 
r (i»c«r"years 19^4 7 'Wa^ ," l^Si ' ^or grar 
icretlonary Fund. 



(4, 1985, and 1986, under the Secretary's DIsctetiondi y P.jn.1 . th.* 
iretat-y nuy allocate amaunts to any State otr unit of ginn^Ml local 
•ernnunt that is determined by the Secretary to have received 
ijfCicient amounts und^r Sec. lOS as a result of a miscalcjlatiiin 
its Bhar'i of fjn<H. 

jrJintee of Lqajis 

Uxn Guarantees aod_ Financing— Sec. 1081a> states that a 
iranc'ee nay be used to assist a grantee to obtain financing only 
th« gr-iiit<'<> h-41 made efforts to obtain financing without such 
trantee and cannot complete flnancinj co'H i-il-ot with the program 

Au thor ization — Sec. 108(b) provides that Mjhject to the absence 
qualities "applicants and to limits appro^ied in appropriation Acts 



B Secretary shall 'inter into ccmmitnenl 
guarantee notes and (^ligations for th>i pu: ch. 
real property with an aggregate |>rincLpal amoi. 



seal y-.^i 19B4 
or rehabilin- 
of S225 mllli 



3T-9JJ o - 84 - 11 



yGoot^le 



156 

indinu_yct)an Renewal .Loans 






ccvnnxanity developing 



available. This shall apply to fonda available (oc FY B4 aid aft-if. 

Pait H - Othe;- Programs 

Ul5.*5._?^'^^l''_P'?^.'^t Action Gr ants 

Authotizatlon--sec . 121{3) ajthocizes to be appropriated Cor 
Urban'tiewelopiwnt "Action Grants (UDAGl , not to eKceed, S440 million 
Col each of the fiscal yeais 1984, l^BS, and 1986. 

Standards of Distress— See. IZUh) incljdes the extent ot 

sec. 121(b) also states chat any city with a popalation o€ 
area and eligible Cor UOAG assistance in fiscal year 19m, shOijld 
oC eligibility to include surplus labor as a standard of distcess. 

UDAG assistance. 

UDftG ftppl icant'a lapact Analj^sis — Sec. IZlld) provides th^t 
the UOAG applicant's analysts of the impact of proposed activities 

moderate income, of the neighborhood in which the activities at"^ 
eaiL-ied out, must be made available to any lnte;»5tcd person or 
organization In the neighborhood where the oroposed activities are 
to be carried out. . 

Matlo nal C<Miipetition — Sec. 121(e) states that the OOAG 



yGoot^le 



1S7 



City and Urban County Consortia — Sec. 121(C) directs the 
reratary to psrrilc a'consoftl'i'jif 'ii hi-?* Jith piipjlations of 
'SS than SO, 000. which may ind.i.l-; uiuity governments that acH 
It urban c<>jati>3s, C'> apply for granta on behalf of a city that 
otherwise ali.jini«. Kny granta auardeil to a coniSOL't i-i -ihall 
adttinifltered In compliance with eligibility requirements appli- 
ble to individual cities. 

ei ijt bility of Uninqorporated Areas for UD*G Pockets of 
nerty — sac .""12 1 ("q) 'provides "that in "the case of 'an urban c'oonCy, 
identifiable unincorporated cwimjoity nay qaslify 'o^ i IJMG 

Techn ical Assiscanci to. Small Cit tes--Sec . 12l(g> r-friji c^ 
I Secratary toprowide technical assistance to Stats^ 'j.- t'l'M :■ 
tnci.!>;, iiniversity operated mjniclpdl techiical -idui^-jry seri/icea, 

ties to develop, apply for assistance, and impt'^iTi.'ni: 'iriAO pL-D^ran: 
ajtborizes 52,500,000 for fiscal years 1984, 19BS, and tsafi. 

S«c. IJllgl also states that tht- s«cr<?ta;-y may not disCLMmlnati? 
ing programs on th.? basia of the particular activity involved, 
tther it is prinarily a neighborhood, industi' i'lt. . Oi •;O'0iieiclal 

ressary for fiscal yeiir Itas. 

Conve yance of HOD^Owned Single Family Prqgertx--Sec. 122(h) 
.horizes the Se'ccetBty "to 'transfer7"HitKoJt 'payment, to any jnit 

-•Eniaent any real property: that is improved by ^ I'l.?- t'l T'lui- 

nipied by a person legally entitled to reside on such property; 
I that i^ r-jqjested by the local government or agency for use In 

Rep airs, Imprqvementa, and Residency--Sec. 122(c) statics that 
I Secretary shall approve th.? initial conveyance of vacant resi- 
icial property by the local government oi- pjblii- ay^-rii;/ -without 
ivtantial oinsideratioo to an individual or a fanily upon condt- 

the date of such initial conveyance; an ayixsiM.'nr i.hat qjch fanil 
person sh-ill 'iak« repairs and improvements to th^ p^ropwrty as maj 
necessary to in«.3t applicable local standards fo ■ d-c'.ii., -iaf'S, jr 
nitary hojaing within 3 years of the date of initial conveyancei 
d occupy the property as a principal L-.!sMenee for a period of nol 

: establiah*! by the Secretary. 



yGoot^le 



. 122(fll provi.lKt Cof *n uqjitable 
;Li)iBOts ot SJCh propect(e« that 
■> sppl icrtritii; whose cuEcont houatoy 
ich and safety, including ovec- 
excBSS of 30 [wccaric of Ch«ir 
alnlivj 

■e'cuccently 



Unqccyfii'"! '^^s*:*'^'?'^.!^.! PlOE^t^ies Lislinq--Sec. 122(e) providH^ 
: in order to f^acilitate planning foi' th.! Homes teading Progran, 
HilD Sectetary. the Adminlatcahoc of Veterans' Affaita. and the 
retary of Agricjltuce shall, upon the request ot at'/ local gouecti 
t oi- p.iblli; *j-jricy designated by the local ijoveLoment prowide a 
:ing of all onoccopied residential prop^iit I'j-j to which the HUD 
retary, the Administiatoi', or the secretary of Agricultors holds 

il ijoh^ernment or public agency. Provides that such Hating shall 
accessible to the public during ordinary business hours at the 
ices of the local goyernment or public agency. 





Conve 


^ance of HUD-o. 


Tied Multifamily Propectle 


~<iec. 122{f) 








may. on a 


demonstration 


aaia dur 


ing FY 8 










I local govern 


ent or p 


ublic 








local gove 




property 




whl 


ch the 


secretary holds 


title; th 


t the secretary detet.s 












pi ilea 






in multlfamily 


homestead i 


ng requirements 


and for 


conslde 






any, as may be 


agreed upo 








uni 


t of general local gov 


ernment or 


public agency. 








Mult 


family Homestea 


ding Progr 


im Reguirements 


-A mult 


family 


hom 


BsteaTinij program car 


fed out by 






public 


age 


ncy de 


ign.ite.1 by th* 












tlfamily homesteadlng 


program th 


at complies wit 










retary determir 




- program conta 


n. fldequ 






uraocB 


that (I) the f 




of all homestead [icop^i 


ties 


follo-in.j 








idential 


; (2) 




leas 


ban 75 percent 


of the rea 


idential oocupa 


ta of he 


rnieatead 




i-.-tie 


following conv 












lower 






ncomo families" 




od aH 



yGoot^le 



.,aaa,53d~in Yy S4 and 35 foe a program to denonstraE^ th.; 
<<iibllity of providing aasiacancfi to State or local gouernoe'ita 

thslr agsnoiHs for the pjtchasa of ti^al pcoperty that is 
proved by a one- to tour-family ri>-jii1';iio«; i -; n.it occupied by a 
rson legally entitled to r^^iii'i on 9jch property; is designated 

the local govecnment or public agency for use in a ai^ijlii-f ani ly 
MSteaflinj pt-i>jL'.4<i; and will be conveyed to Ion";.- iricome Camilies 
M condition that the family agrees: (1) t) 'ii;cj[>y tht^ property 

a principal reaid^no-- for a pKriod of not less than 5 years. 
capt under such emergency circumstances as may ;>e established 

the Secretary; (2) to repair all defects in the pcijppfty that 
M a sabatantial danger ti> ii^Mlth ml saf-^ty ulthln one year of 
a date of Initial conveyance; and {1} Co ^nalte repairs and improve 
nts to the property as may be necessary to mtit local standards 



public 11 


:: 


ry shall 


r? 


ve pre 
liens 


fe 


Evaluat 
tdjct a CO 


ti 


ulng eva 


" 


. 122 


t) 






technica 








utainlng a sun 
ter than Decen 


macy and 
ber 31, 


.' 


turer 


ec 


iahborhopd 


Development 


Grants 




Sec. 123 Cl-^;.t..s .. 
IgiblB neighborhood de 
rry out nei-jhborhood d 


'• 


opment 
lopm.,. 


'o 


eitablish 


-^ 


t.UUUs 
enpand n 


■w 


ligib 
buBlne 


i: 



ly Made vip of at least 51 pet 
> neighborhood, has conducted 
lor to the date of an appltca 
itressed area as defined by (J 
c or wire of the eligible act 



Prog ram Fun di no --The demonitracion | 
Cching funds to eligible neighborhood c 
« basis of monetary flupixj^'t v«*ceived fi 
4 nonprofit or other organiiit ion-s. 



yGoot^le 



AEE.l-ic3ii-?.".l!-:'^Plication 


s will be submlttad to the Secretary 




ticipate in more than one year of th 


program bjt must submit a new 


application and compete for each 


proyram year. Not more than 3 




year award 9, 




ABpl ication ReiJirements- 


-Participating organizat ions will be 


selected on a competitive basi 


s. TO be selected, an applicant Bha 




achievement in one or more of the 




a), neighborhood development actiuic 



■ proposed act 



3 of the neigl 



businesses and individuals participating in 
are representative of all businesses and 
individuals in the neighborhoodj and the extent of voluntary contri 

the case of an application sjbmLttcd by a small, eligible neighbor- 
hood organization; an organization targeting a very low-ircone 



Grant ApiqLjnts --Part icipatinq organizations shall be assigned a 
program year during which voluntary contt-ibocionB shall be eligible 
for matching. On a quarterly basis, each eligible organization shal 
be paid the product of the aggregate amount of contributions receive 

neighborhood, but shall not exceed SSO.OOO in a program year. The 



irded only if 



the unit of governmenc in which 




sted neighborhood is located 


housing and community developmen 


istancc 
plans 


' with%ivil'rights''8tatutes 


Reflulations-ln order to ca 
research conducted by federal ag 


ry out 
nds of 





yGoot^le 



iljde the pertorinai 



ippnipr la t«il anount t 
Hap orts to Conqt 






IT fTT* 


and" 


:^.^i.S"T ere 


ed 


o be 


apt 


.oprt 


i;.>d 3^.000. 


'MipJiA 


2 Re 


hab 


ti'^-tiq 


Loans 












sec. 124 

;^'as°stngl 

«*ipt oi js^ 


s f 
an 


flfl th^t 

funds 
oiily or 
a prior 

as CDBG 


ty tor rece 
or Section 


prof' if 

finds) 1 


ng 

log 


t rfiq 
type 

Prog 


oE housiny 
Secretary 

munlty 
a priority 




CorEO_ra_t.ion 












sec. 


125 
y be 


authorises 


16.^12,000 for 


isca 


y. 


.r n 


4 .toil s,j.:ii 


BMlers 




















ogra™, 
■ever, 
tmc the 
]jeat<><l 
ction a 


GSA to 
so reta 
ny prop 


s HUD an,1 P.»»-. to disp^ 

ransfer tho land prior 

rty within 30 years, or 
not used for housing of 


20 y 


a" 


Sutpljs Land 

plj<i property 
tetary^had 

inership to tl.i 

nn.l^fite income 



126 lb: 



(11 



I6(g: 



A9, dealing with a tra 
naj (2) S.JC. 703(d) of the Housing and 
(S5, which prohibits the conversion of I 
icllities during a 20-yecir period follov 
14 and tho second sentence of Sec. 706 < 
lich prohibits th; caovecBion of open spai 
:iglnelly approved by HUD, and which give: 
Jthorlty to deny approval of the conversli 



^ of neighborhood 
HojsingAct of 1961, 



yGoot^le 



TITLE II— HOUSING RSSlSTA-iCE PROOR^tS 



Assisted Hojsing f 



le a fo^jl* prescriti^J ti/ 
ttii relative needs of lifFe^ 



xlthin that fiscal yvi 

•iic. 201(a) 
approval of app.-. 
of assistant- ji ' 
lonmetropolitan a 



Lcaf? pr->jri.« f. 
!0 nor Bore thai 
;n ny fiscal j 



may approwe' the 



lority— Sec. 2111 



ng developnent ajlhority 
f property t-> 0-t js-?-3 fir pjblic hojsing if the 



>xceed SI. 28*, 5^0, 000 for pablic hojsir 
. fo.' lo.l.-i'i iijsna): Sl,926,*00.000 t 
conjjnction with the Sec. 202 pr>jran, 
• isiwe -Do.iirTiiiti .a, 32.217,150.000 fc 
: 5540,000,000 for Sec. 8 vdtrate rehj 



5115,000.000 for 



yGoot^le 











20UC) 


tn 


tea t 
acqjl 


n 




Ion only If 




sretary may 
PH» deraans 


' 


, a PBA in conne 
1 p»rcont of the 


—See. 201(c) « 


so .ir,t.lbli 

eve fund in 
St fOL- «io 


*of*iio 


po 


.. appl 


« 



on or aftec October 1. 19H3, pi-iori 
jBLng development shall lie gi^ren to pr 
ising fo:: occjp4ncy by larye fanllies- 

lv«r of Sing le Pecaon Occupan cy Limita 



■ ara a rHoiaining member ot a tenant family dje to the condition oc 
cation of ajch dwelling jnlt. and that such dwelling unit may bs 
cupled if made available to single persons In circumstancua 
•eribed to cegolatlons of the Secretary. 

i qrity for .Housing Assi stance 

Sec. 20J states that the priority in assisted housing programs 



sec. 20A provides that the secretary shall legji 


e public housing 


•nciea"to establish and implement an administrative 




Etcedure under which tenants will: 11 be advised of 




yjnds of any proposed, adverse PHA action; 2> have 


n opportunity 


.- a hearing before an impartial party upon an appl i 




■luesci 1) have an opportunity to eiamine any docume 


ts. i-scor-is. 




o be represented 


a person of his/her choice: 51 be entitled to ask 


uestions of 






be entitled to receive a written decision by the P 





1 agency may CKclude pcoceduren for evii 
incy if the local jurisdiction requires 
:retary detec^inea will provide the basi 



yGoot^le 



Sec. 204 also states that the PHA shall jtlllie lease* chati 
{l> do not contain on tea so nab le c«i-mfl or conditions; (21 require 

reqoice the PHA to give ad^qjate written notice oE trtmiodtion 
of the lease which shall not by lass than: (a) a reasonable tiite, 
not to exceed 30 days, when the health and safety of '*HA enployees 
.)!- othi't twnants is threatened; (b) 14 days in the case ot nonpay- 
ment of rent; and (c) 30 days in any other cai«; and (4) reqj lre 
the PHA may not termi nata th^r tenancy eKcept for serious or repeated 
violation of the t«vm9 ot conditions ot the lease or tor other guod 

Repor t I ncj Requ irem ents 



djplicative ot bjcdensome 
Amend aents Affecting Tenan 






/ipply foe fanilles receiving 
ler denonstrat ion program. 

PamilLea--Sec. 206(b) provides 
ioV ceilings higher or lower 
1^ -.L-..^ h.n.jd on the Secretary's 
lessary becaja^ rjf jnjsually high 



:>BCinition of Adjusted Income— See. 206(c) defines the terra 
■adjusted fricdnie- "foe purposes of "th.^ 1137 Act as income less; 

student la years or older; S400 per elderly family; medical 
enpenses which enceed 1 percent of .innjal family income for any 
elderly family; and chili) c.if i'xp..-nses needed for BTRployment or 
to fjrther the education of the individual. 

or before thi effective date of regulations i.ni)l.!.n^nt i nj this section: 
(a) the Secretary 'nay provide for delayed applicability or staysd 
implementation of procedures for determininij rents or contributions 
if ir is determined that the procedures would violate the terms oF 



yGoot^le 



Tenant* not covered in the above paL'^gtr^ph will be sjbjecc 
to payment of rant or conttibiutiopi jnder applicable law. but the 
increase ot the cant or coocribocion shall be limited to 10 percent 
t year i( the incraaaa is dje to a change oE law or regulation and 
the tenant is in an assisted housing program on or before the 
effective date of implenentat inn. Th-' ;ni:iiMS'^ nay be above 10 
percent only iC it is based on an inccease of the Income oC the 

Tenants receiving rental aiqiMh.im;'! jndec Sec. 521(a)(1) of 
the Hou3in.j A.:t .->f 1*49 on th^ effective date of this section 

of assistance fron Sec. 101 of the HUD Act of 196^. Sec. 23fi of 
the Natiooal Housing Act oir Sec. 23 oC the U. S. Housing Act nf, 
19J7 to Sec. 8 ot its a result of any amendments made by this Act 
to not iiKice than 10 peceent annually in the ease of elderly tananta 

occurring after October 1, 19B1, and befon; thi; 'inactment date of 
this Bill, the rental payments due after such date by any elderly 

shall tm OcTnliJJted as if the 10 percent limitation had been in effec 
on the date of conversion. These limitations mAy bi i-^ruv^d only t 



3 monthly adjusted income; 10 percent of the tenant 
I or the designated cuiuunt ■if welfare assistance-. 

1 25 to jn p;;-™nl 



than b-=- fully implemented no later than 5 •, 
■n^ictment of such amendments, except that tf 



rental riliahLl itation and development program under Sec. 17 < 
- '" -' -■-- sing Act ot 1949 or for other 

Assis tance Payments- -The monthly assistance payment for any 
family shall~iJe "tfie amount by which the payment standard foe the 
i exceeds JO poicent of the fa'Oily's monthly adjjsteed income, 
encept the assistance shal! nfjt .jno-'ed the amount by which the 

eluding utilities tf 4 unit h^s a s>!parate neterl exceeds 
it of the family's nonthly income. 



yGoot^le 



es or £a»lllos previojsly asaisti-il jndar See. S. Preference 
tiCarily dlaplicecl; who are paying more Chan ?0 percent of 



ThB secretary shall use the aathotity to enter li 
Ike aaslatance avallabble to familLea liiring in dwellings to 
ihabilitated with sec. 17 f^inds; Cor fa>nilies displaced as a 
It of Sec. 17 actWlty or sec. 5J3 activity. 

If a family vacates a jitlt before the expiration of the lease. 



Annual C ontributions Contiflct--A contract with a PH* shall bo 
initially for 60" months. The Secretary shall require chad (a) the 
PHA inspect Che jnit before assistance is made available to determine 
that It meets scandatd^ foe decent, safe, and sanitary hojsing; 
(b) the PHA make annjal or more treqoenc inspections djcirig the 

these qjality standards, unless it is corrected promptly by the owner 
and verified by the PHA. 

Paym ent Adj jstme_n^ts--At the discretion of the PHA, assistano<. 
payments may be adjjsted as frequently as twice during any S-yea^~ 

exceed the anoant of the annual contributions over the amount of 
assistance payments actually paid, including amounts which (ith,j.-wi'!<s 
become available during the contract period. Each contract with a 
PHA shall provide annual contributions equal to 115 percent oC th» 
aggregate amount, of assistance required during the ClrsC year. Any 
amounts not no>>ded for adjustnents may bu js-id for as'ii?it in':* to 



affordability of this housi 

Renewa l of Seq^ 8 ContractJ 
Sec. 208 provide that 



yGoot^le 



B ip»» l of t l»w Construction Author i tj; 



pcogran. The re(Kial takes effect October 1, 19B3. except for fjnd<j 
obliijBted for • viable Sec. 8 project before January 1, 1984, and 
tor any Sec. 202 elderly project. 

■ Occ upancy H oui 



Sec. 210 pro. 

rfiich Kwe or all 
or kitchen facilfi 


Mr 


: tl 


tha 


t as 
-ell 


i^^unltl 


local .jotfet 
pjblic houE 
copHes ui 


!ln.j ag. 
.th loc, 


)l 


;y . 


ich 


ify 


propi 
saf. 


sty 1 


Shared Hou. 






he 


Ein, 


.rly 







Sec. 211 permitH Sec. S existing ho 

lulJ-tlng for the elderly as such persons 
of the U. S. Housing Act of 1937 and dir 
develop ninlinum property standards for s 



' El igibility 



See. 213 deletes the provision adopted in the Onnihus 
Beconciliation Act of 1981 which cestricted in the Sec. ft a 
public houqiri^ prograrns the percentage of familiee with inc 
betiieen SO and 80 percent of area <nedian IncoiMi and provie 
at l'-irtC 25 percent of the families a)i>ilst<>d under Sec. 8 n 
vary low income (below SO percent of nnodian inconii^) . 



yGoot^le 






il d»!nolitlon, the denolll 
.ii<j poition of the project 
' ni- ttansEer, (i) the 



th« project by t 



effectively 


€" 


"lo«r"i'nconi9"hoos?ng'^Btr>ok? .' 


nd will pcese 
I- (iii) chs 
ca oi- the PHA 


pnity is ex 


Llln 


^n .ipplic^tion for dispositio 
with the contln.i^.i operation o 


n of property 

incidental to 
f a project. 


U9e_q[ Dl 


epos 


ti£Q N£t .p^9q«sr:''*^p''""•''' 


a of J dispoa 



I tlie paymeiit'of development cost for the project 
! retirement of ootstrtnrttn.j ■ibl igations Issjed to finance 
il develop^B-i'ii; oi" noderniiatlon of the project; and 2) to the 

acquisition, development, or rehabilitation of other properties 






the local gove 



■ unless 
r disposition and con 



iry may n 



approve an 

ly, affected 

Lcatton by 



1 result of tf 
md affordable 






Sec, Zl-i stflt.-s that c 

^rest diftei-enttal payne 
fi-rnpt public hoj.sing 1 



yGoot^le 



BMrgen ey S lwlter ^ofltM 

sec. 216 authorizes SSI) million for CLE 

Hrvicis for Individ jala facing 1 ife-thceate 
■ill ba awacded on the basis of the extent c 
twjslny in the area, taking into accoont re^ 
tlw .-lost to urijtf Ide a shelter. Grants may t 
ind/or natntain sxisting structures, to pay 
f.iriiishi'vja, to provide for health ' ' ' 
»iiV CDBG actluity that is constste 

Behabilitat.-.l st.-j.:t.i.-.;^ ahal 

ttie special needs of families and 



Eligibility— sec . Snta) clarifies thst as^i sl^.i^ii- ■ihall tit 
tad4 aV^I table under the troubled projects program to eligible 



sec. 


2J6 Assi> 


itance 


























Requirem.e 


^nt to M; 


Ike 


AmendmeT 


itB- 


-Sec. 2H 


;ai 


am. 


indi 




JC. 


236 of 




the 


Natiooal >- 






«i"th"ri 


!Bpe< 




Lgible 














,s and reee 


living S. 




2-iti ass: 




ice prio! 




) tl 


^^ ddt. 


; OF 






«nac 


:tm«nt of t 


;his pro> 






:equ 


ire the ! 


























:ed 


into wit) 




roj. 












S^c. 


2}6(f)(3) 








pay. 




) pi 










lent 




payi 


























and 






















li .ifC^ 












lard to -hetl 












by su. 








subject 




moctgagi 
















nd tha 




the 


secretary 

L payments, 


shall t. 


like 


payment! 


^'th! 


3 as may 


Ct^l 


nee! 


es^i 


iry' 


'ren 


t'incr 


ua' 






1 the inccnea of tei 














ily 






lor 


all units 


covered 


by 


s.i.;'i ■;'}< 


itrsi 


cti. 

















Use of Becagtured Authority — Sec. 2lfl{b) amends Sec. 216 to 
ividi' tlvtt d'Cter Septeiiber 10. 1981, any authority that is 
;aptjred either as tho result of the conversion oC iMj^L'ig projm 
listed under Sec. 236(f)(2) to contracts for assistance under Sec 
ihall be utilized by th.> S.v;..-etary to the extent 



yGoot^le 



necessary tor t*ie pj-'ji-i- .1' ukin.j assistance payaents, includtno 
as^?xi:«e nts , with r-^spect to tiojsmf p^'Oj-^cts t **i^t**r or i»ot subject 

iimszaztce jnde: Sec. I]6<fM2l. 






to Projects- -sec- Zl 
"iti '-i~6a!i 'development iWt ol 
ta eligible teiants 3ccjpyir»g 
3 the date ot enactment o£ tdi' 



ai a«?id<> S'C. lOl o( the 
965 (Reic Sjpplesent), with 



-.-*1 i 



(ith 



iiiJe sufficient payaenes to 

lat «jch off*.- 5hal1 :»'• 
covered hy sjch c-Mtracta 
s ^;t, anJ that tie 
le lecessary to ensure that 



? 3f Recjptjred A 



. Sf.-. i» ir 3 



1 contracts tor as^is 
i Hf 11* 'i-cretary to 



nee pay:»ents jnder Sec. JJSIfKI' 



sec. 2J0 r«;-!res -M.- S-ci--i-, 
■ ;• enactve-.;. -. ■ :->-^':-~ t-- t'-.e 
jrajraim estas 1 : s";.*! Sy the Seer* 



;:x Sec. a assista-.ce , 
^■.^}ei tor pjMi; -.->?: 
cip«-.i:t.,res cor-.tected 
■.-.■-.i:.v r-iMrv-^J fcL- 
r3»;lete^ a-sJ occ-p-.ei; 

:;-s-.Jered la-fle-.^i. 



laer t 



Iter than 120 days after 
prwiSe Sec. 8 
■ the CDBu prograa. Ttie 

E. Sid actjat and fjtjre 
< the itatjs of anits 
: fie nn^r of jnits 

>j«3er of local proji-sas 



yGoot^le 



Sec. 221 provides that, 
of law, for purposes ol detei 

living in a dwelling jnlt in 
.mder the 1437 Housing Act oi 
■hall be consld<4E'ed tii bi> a i 



Sec. 23« of t 



author ity to .Carrj Out .Demonstration .Proarara — s« 
provides that the' 'secretary 'stiair'carry 'out a deiibnst 
to deteiTiiine the feasibility ot jslny pjhl Ic hoj^iivj 
to provld.' child cat- spfvicea tor lower income famii 
in pdblic housing. It provider that the Secretary sh 



) chill 



:hll(: 



support child cari 



jrvict 



progra 



prior to the denonal . ^ 

pojrv^ of the PHA will serve preschool children during 
tlmenCary school children after school, or both, in ore 
eligible persons who head the families of the children I 
retain, or train for eaploynent; 4) the child care smvi 
Of the Pa\ la designed, to the extent practicable 



of I 






jipVoy i 



ime pos 



ing frt 



prograa for purposes of determining thi 
program in providing child care servici 
persons uho head lower income families 
to obtain, retain, or train for employ 

Sec. 222|d) provides that the deiM 
0* construed as authorizin-j the Secreti 
lafety, educational, or other standardi 



ach child ca; 
effect tvenea 



37-922 0-84-12 



yGoot^le 



—Sec. 



of ths !-ye»r period fo. 
Secretary shsll prepare 

nt carrying out this dewor 
report ahal 1 Lncljde . 
respect to the eatabl 



provides that n 

awing the bill' 

,nd submit to tn 

findings a 



in the explEstic 
1 detailed repor 



Elder ly and Han dicapp ed Hojainq 

E lde rly .«nd_Hand lcageed_ .Hqusi 

SeptemOar 3D, 1982, and prior to C 



*ing author! ty for the ^ 



ajthoriies an increase in Treasjry 
. 202 piogcam tor tiacal year 19B4 
may be necessary for fiscal year 19( 



ion for the Sec. 202 program for 1 
iBd Hol laing Set -As idee - -See. 223(d; 



I amends S>^c. 202(h; 

least S50 million ol 
nounts appropriated (or the ptogtam for 19H4 shall be made 
ible Eo:: hariilic^pped housing, and to expand the definition of 



iry may not a 



. 221le1 limits 
lercent unless 
) SIO.OOO the a 



i prepaymt 



Fill e 



i the 



- of Sec. 20 2 
linued operation 



ita as provided for in the 

Sec. 202 mortgages. In thi? process oE selecting process, the 
Secretary shall assure the inclusion of special design features 
and congregate space for elderly and handicapped residents and 
encourage small and scatter site gro.jp homes and independent living 
facilities for nonelderly handicapped persons and families. 



yGoot^le 



Th« b«*la (or aalecl 
deteninml by the projoci 
cost is l«aa than 92 iw'" 

s a labor organ i 



The Secratary nay not 
ividlng funda fro* othei 
appropriate design and 
:. 202 projects IE he c- 



Ion of a Sec. ZOZ 

loni It project ri 
02 fair naniet rei 

t prohibit a prnjt 



Con-jraqatc Housiiuj 



include an evaluation bj 
decentraliiJiti.jn oF t^^ 
Idijislative cecosnendati 



y change since January 
gate hojsinj s.'ixic'^s [ 
Ides that such report s 
»ry ot thp reotgail J!atl 

S-jci-.jtfl-y f'l:- th» PStat 
ervlces program, 

horizefl S4 million for 



iblishex as t 

and their designated auenci.>s in ');'lec to 
■ill (II encourage ths upgrading of hausir 
lower incone Csmillna, Including families 
under the aid for Eaoilies with dependent 
jnder Title IV of th.i Social Secjrlty Act: 
coordination at the local level at the eCC 
receiving public assistance from the Depar 



ivelop a program th 
occupied primarily 
ictiving aasiatance 



Autho rity to Car ry Out Oemonstrat ton Ptoqr aiii--S 
ajthorizcs the "secretary of' HUD 'to carry "out tlir- den 
t^b» extent approved in appropi-iation Acts. 



yGoot^le 



Authority to Mafce G r ants — Sec. It^ld) provide* that in carrying 
out the tieiiKinstratlnn prujuot. tttt Secretary shall nake grants to 
jnlts oC general local gO''>«rTimiiit, or designated agencies thereof, 
to carry out adminlstratiue plans flpprou-d h/ the Secretary, and 



assi: 


stance for the pj 


cpose r,f asslstlig 


SJCh 


unltn of 


g^n-r^l local 


goue; 


cnT,ini. to develop 


and earn 


' O'Jt 8"=*' 


1 plan 






.ay, 


Eligibility for 


■"Snd units 


; of gene.-il lo 


cl^ltZ 


-nment and 


ageni 




spply Cor 










dete, 


rralned by the Sec 


retary a-ic 


i thit. in 


, the 


case ot I 


inits ot genera 






their ager 






cted on t 


:he basis of an 


admii 


ntstratlve plan d 


.>-?ci-ih«d i 


■ n sjch sif 


.plica 


tlon. 






AdmlniatrativB P 


Ian— Sec. 


225(e)(2) 


prov 


ides thai 


-. no such 






ha'll be at 












^orth^rplan'for 






icttvi 


ties that 


: are designed 


to ( 




ourage owr 






housing ' 


Kcupie.! by 






to bring 




ling I 


nto compl 




local housing codes; 


12) provic 


le technic 


:al as 


sislance, 


loans, or 


gi-sn 












of 3 


jch housing; (3) 


work with 


the State 




stablish 


and Irapl-Bent 












ciplents 




undo 


r Title IV of the 




lourlty Ac 




ed on bj 


ding ojal ty 




-111 be appllcab 


le to bul! 


dings ln« 




in this 


>imation^?oL 




coordinate local 


housing ir 


ispection. 


hous 


Ing rehal 








rental ass 




..n.1 social set 


-vice prog rails 










,y and 




hojs 


ing for lower inc 


ome faraili 


.es. 










Eliai.ble_U3e .of . 


Funds— Set 


:. 22S(e){ 


3) pr 


ovide« tt 


lat funds 




ived from any gtra 




■etacy 






loca 


I govern.nent shall he made 


available 


. for 




■ding to the 


adral 


nistrative plans 




! used (ot 


■ (1) 






or fln^nc^Ul .is^istan 






upgrade 




deac 


ribed below: (2) 


temporary 


cental as 


Iststa 




,mUi«s who 


live 






.r their [ 


)rogra 


a and who are eligible 


fo:r. 




iving, as! 






S.iC, fl, '. 


sxcept that 










iving aS! 


ilatance under 


Titl. 


e IV of the Socia 




■ Act, and 


1 the 




■■ SJCh rHntal 




stance may not ex 


ceed 20 percent of 




grant ret 


:eived under 








1 refe 




other housing 


related ser«tc«s: li) 


expenses 


Incurred 


in ad 




ing the proyran 
















aitpe 


nsea may not exceed 10 pen 


rent of tf 




nt received" under this 


sect 


lont and (5) othe 


t appri^ri 




'ities 




Kith 










e approv. 


td by th,, 


Seer. 


etary. 














Conditions on As 


slstance— 


-Sec. 225(e) nc 


ovidea tt 


lat grant 




pT^ITts— hirr-agreeto-riT [ 




li pe 




Lohing 












rried oul 




with 


the program; (2) 


permit tt 


le secrets 


• try an 


d the Gei 


leral Account 1' 



yGoot^le 



■ rrying c 



: thin 



effect 



and effi 



: the funds re'^tiiaH 
h! S'^iiCioni and (31 
iry for the purpose 



Selec tion C riteria — Sec. ZJSIg) provides that the Secretary 
•11 select as r'icipients at least 20 jrtlts ni gnneral local 
■rniaent (or their dosicjnated agijooiHsl and that ths selection of 
Dpoaals for funding shall hv basftd on criteria that result in a 
laction of projscti that will enable the Secretary to cacr/ out 
■ purpose ot this s-^ctlon in an effective and efficient nanner 
i provide a sufficient aiBojnt iif data necessary to maXe an 
iljation ot the demonstration proj-ct i;->::i".i 'i.jt under this 



Report- -S 
•r tfian'jjr 



Ions that 
irrying o 
ions that 



.his 



f.ion. It also requires 
than October 1, 19B5, 

iached by the Secretary 



Sec. 22^(i) H 
i of SIO mill! 
ot SIS milli 



Authqriiai 
lilable until expei 

:tto n .?35_HQraoqwnBrshie ABsistafice 

Li»it atlon on _Tei7i of ftss iscance P; 
It assistance payments under Sec. 2l''i 
:eced into after Septe^nher 30, 1983, t 
appropriation Acta tor any fiscal yn 



!'■• appropriated a 
I y>ar 1984 and ar 
1 year 1985, to re 



I provides 
:ity approvH 



til^ 


for Prov 


'.sion 


,qt-M(lL 


t'o 


al_ 


553i.ltA 


-s 


exte 


226(b) 
t appro 




lablishes In the 


Tcea 


ury a t 


jnd 


whi 


ch, to 




n^lpria 






be used 


by 


the 








ovid,. ^ 
















po3 i t-i 








;ljde a 




recaptured a 






jlt ot 


h.> 


■ill- 




nded 












ty 










It is c 






















rCgas]-, 




adva 


nee ot c 


red 




nvolvod 


is 


i-efi 


lanced c 




:ausa s 






payment 


















wna befo 




. original 




inatlon 




e of 


such cf 




1 any i 


















ints 




in the f 


und i 




of 




unts de 


tei-mined 


by the 




:ratary 


to be cu 




ly necesaar 














the Un 












ncy obliga 




It pyr 




It in t 


e case of any 










0-/^ 




d of 


ilatancrt i^ det: 


rmined by the 


Se 


ret 


ary to 


be 


nabl 


p to as 


j.n« 



yGoot^le 



11 payments due under the noctgage. lOdn, ot' ^vance of cradit 

amounts In the fund, conttact to nake, and nakii, contlrued 

itinued assistance payments shall h-; madu in an amount determined 
accii\lance with the method for detirmining such payinenta under 

Author i latton — Sec. JZ6(c} provides that the agyreyflt« *'K)urit 
outstanding contracta to make assistance payiaents under Sec. DS 
)j'!<:t to appcoval in appropriation Acts shall be Increaaed by 
j.66 million on October 1, 19B1, and that the aggre^jate awiunt 
It may be obligated over the duration of ajch cnntriici'! 'O/iy oot 
;eed $166.6 million. 





Issuance of Commi tmenta and Bese_rvation3--Sec . 226ic) provic 




t Che Sectretairy shall begin issuing n->M commitments and 










per 


lod (ollowing the approval in any appropriation Act of budget 




hocity for Lh.- :^.;ti<>n after the date of enactment of this Act 




Ekpansion of 2iS Program— sec. 226(d) provides that t-o Fa..i 


dwe 


11T?T5^ are elCgTbre for new construction an.1 ■JuBstantlal rehal 




■■.- th-j 2J5 program and thre-4 f^rnily dwellings are eligible foi 




stantial rehab. Mortgage limits for two and thr^ie f*nlly 




llings av.; SSO.DOO and 566,250 In high cost areas. Rental jni 




t be occupied by persons or families -hose incomes do not exc( 


100 


ppvc-^nt of the area median income. 




P^A? i". Assisted Housing-S^c. 227 tenants in assisted housi 



the elderly and" handicapped c _ 

although gjidelinei 'Shall bu established by both Management and t-^nar 
as to 5ii.» and type of pets allowed, financial ■)blig^tions and 
st.indrirds of pet care. Pets may bs removed for health and safety 



yGoot^le 



ion and DBvelopnent Grants 



■ntr flr"h»"re°ta l''re ha b i 1 i tH "^ot ^ r 
3p«rty to be used for prinariiy resident 
1 Bake developDent grants tor new constt 
tiabil itation of real property tot primar 
rpo«e». 


vately-owned 
al rental pu 

ly residenti 


J to support the grantee's progcara. 


placed by tbl 


Uion for fiscal years 1984 and 1985, of 
llion shall be available for technical a 
■11 be available for development grants. 


which. (1) 
BiHtation, o 

on for fiaca 


Foraula Allocation— Funds available u 
■llocated to cities with populations of 


50,000 or mo 



14, the Secretary 


m 


y art 


iinl' 


State 


administer 












low 












wlr review and 1 




cfileving 


labili 




















imount esta 




shed 


tor 



The secretary a 



on is not feasible. 
c shall be added to the state allocation 



lish performance c 



yGoot^le 



1 Secretary may i 



9al locate 
by grant 



r shall be added t 



rehsbllita 

end of t^ 



n program c 
od of distr 



tablishes 


rules. The pcogr 






ting of 1 


s proposed actlvl 



ren 


s at 


the proposed leue 


s; a 


< the 


e 


feet 


of the pcogram on 


nei 


hbochood pres 


ilabiliti 
selected 


(5) a 


fina 


c 


al feasiOility analysis. 


alld 


evlde 


nee that 


proje 


ctB% 


1 


be" 


ocated in neighborhoods 






















Ighborhood indica 












ext 


nded 


period, 


and (6) s 


ch in 


forma 


» 


n as 


the secretary prescribes. 




pros 


SiiSf" 


irements- 


ft ren 


tal r 


h 


bili 


Btlon progran shall: 




only 


to rehabi 






P 








arlly 


residen 






poses 




2) be used in neighborhoods 




e the 




















the gran 








o SO 


percent of the total 
















cept 


in cases where the 


sec 


etar 








ncing 




sts 




of 




oject re 


quires gr 










he grant assistance is 






o 50 per 










opne 




(4) 


only 


be that 


rehat.il It 


tion 








correct substandard 




itio 








)coveme 






ays 




n dangec 


of failu 


re: (5 




ide th 


t assistnace for any . 






shall n 






per 






cept in areas of high 






c costs a 


d whe 






fort 


by the grantee to keep 


cos 


s ul 


hin ptas 




s -ad 




(6) 




dis 




ent of V 






famil 




by 


amilies who are not very 


low 


incone; (7] r 


equJre th 


owne 




) 




iscrininate against 




pect 








of t 




r receipt oc eligibility of 


fed 


ral, 


State, o 


r local housing 








or, except for an elderly 


pro 


ect, 




asis of t 




«ith 






hildcen, and ib) not 








domin 






oope 








10 years 


beg inn in 










ich the project units 


are 


comp 


eted : I S 


) provide 


that 


the S 


a 


e or 


local gowernment 



yGoot^le 



that asBistance ia aade availahle 
ing lami and (9) use 100 percent o 
ot(*r incope familiaB, except that i 
70 percent if the grantee certifies 
ary and cannot develop a program, a 

t tihere the Secretary determines'th 


n coBpliance with 

shall be reduced 

ter consultation 
(b) not less than 


•t«rv-8 Responsibility-- The Secreta 


y shall assure tha 


ble Bhare oF grants is used to assi 
ilies "ith children, and priority s 
containing units in substandard con 
by vary low income families. 


t farailies, includ 
ition which are 



r Ne« C 


onst^uct 


lo 


and 


subs 


loans, 
ruction 

d prima 


-Develop 
provide 

rily for 


me 


tial 


t re 
re ha 


EUgib 
ing a s 


^^'ll 


or 


proj 
age 


f'de 



account the extent of poverty, tti 
incone fanilies of physically inad 



; of i 



ling, 



ijpancy 



:he level ; 

housing vacancies, the extent of lag between the need 
coduction of rental housing, and other objectively mea- 
ditlons specified by the Secretary. The Secretary shall 
egulations no later than 60 days after the date of 

and shall promptly transmit to Congress the regulations 
•d by a list at areas meeting the minlmjm standards, 

aubmtt a grant application. The Secretary may consider 
ation located in an area not eligible where the Secretary 
B that a project involving assistance for other than 
rahabllitation is necessary to meet special housing 
to advance a particular neighborhood preservation purpose. 

grantee shall submit an application which 
description of the grantee's rental rehabili- 
itlng of the proposed activities for the 

■ schedule to carry them out; 12) a 
was developed after consultation 
procedures and standards 
,ee's proposals, taking into 

mits will be adequately main- 

ied program on neighborhood 

lion as the Secretary prescribes. 




yGoot^le 



PEoqrani I(equlreiiient8 --Ttie program shall provido thati 
(1) assTstance be used to develop real property for residential 
rental purposes only; <2) grant aeslatance be United to 50 peccent 
of total rehabilitation cost of tha structure, except in cases 
where the Secretary determines that refinancing costs and the 
special nature of the project requires greater assistance, the 
grant Is li»lted to iO percent of the total development cost plus 
acquisition; 11} the development will not cause the involuntary 
displacement ai very low inccne families by fanilies who are not 
very low incone; (4) the owner agrees; la) not to disctininate 
against prospective tenants on the basis o£ their receipt or 

except for an elderly project, on the basis that the tenants have 
a minor child or children; and (b> not to convert the units to 
condcniinium or cooperative ownership during the 20-year period 
beginning on the date on which units in the project are available 
for occupancy; (5) for 20 years, beginning on the date on which 
50 percent of the units ace occupied ot completed, at least 20 
percent of the units shall be occupied or available foe occupancy 
by persons and families whose incomes do not exceed 80 percent of 
the area median income; 16) the structure: (a) will have a value 
after rehabilitation or construction that is not more than the 
mortgage amount Insurable under Section 207 of the National Housing 
Act! and (b) is secured bv a mortgage which bears a rate of interest 
ditiona as determined by the 



!rity of the shortage of decent 

idividuals without other reasonable and 
12) of non-federal public and 
ibutionsi 11) to which projects 
upment and mitigate displacement i 
itablished a satisfactory record 
;apocity to undertake the program 



and 


other reasons 


le 


ems 










r than 24 mon 


hs 


fter 










abl 


in complianc 


wi 


th fa 




Proiect seleotio 


J— pr 




s of the exte 




(U c 








loc 


ted for famil 










al 
















hbo 


rhood 




to which the 


ppl 


cant 












5) to 










are 


xint recapture 
a, financing 


Ite 


rnatt 




nts being ser 




(6) 


for 




ami 





, including large fanilies 



east federal c 

differences among different 
d the types of projects and 
h rents will remain affordable 

which the applicant has 



yGoot^le 



ith relatively long waiting lists ti 
lere Eamiliea with Section S certif 
tngth of tiae to find housing. 

Entorceaant of Program Requlremi 
take legal action to enforce coinp 

ring the 2a-yea[ period beginning on the date when 
the units ate occupied or ccinpleced. For violt,-5i 
shall ma>ie a payment to the 



ar and any frai 
temined by tht 
outstanding mt 
nth preceding the dal 

quired to be repaid ipius interesti snail oe cei 
nt for each year in excess of 10 years between i 
-year date and the violation. Any amounts reco' 
ed for developBenc grants. Any assistance jndei 
nstltutcs a debt payable fee failure to carcy out the agre> 
d shall be secured by the security instruments provided by 



iding. The rate will be 

Lto account the average yield 

shall be reduced by 10 per- 
'ered shalll be 



i occupied by 



ared approved 



Grant teounl 



t the SI 



anount established for eligible are 
I or part of these resources to cart 
ition program or to diatribiiEe theni 
;lcy with a population over 50,000 n 
Iminister its program. 



yGoot^le 











listec the resources in accordance 




jcocedures, including grants to ci 




10 electing not to tadminlster the 








r own programs. 




A State nay apply for and receive 


a deveU 







cehabillti 

property included or eligible for inclusion in the National 
Register of Historic Places, that: (1) it will reasonably me 
BtandardB issued by the Secretary of the Interior and that til 
appropriate state historic preservation officer is afforded t 

; proposed activity c 



luld adversely affect historic property, the Advisory 
;ortc Preservation te afforded the opportunity to 



Assistance is subject to Sec. I0*lt) oi 
munlty Development Act of 197J concerning ei 
and Sec. 220 of the National Housing Act. 


t the Housing and Cf 
ivitonmental policy 


Financing— subject to terms and condit 
secretary. State or local PHA obligations ii 
development or rehabilitation projects are i 


ions prescribed by t 
BHued to finance 
tax exempt. 


Definitions— The ter™: 




(11 -Hehabilitation granf means a grai 


It to finance moder: 



yGoot^le 



Bousing and Co^unlty Davel 
be used prlnarily lor ; 
— ^araclva or Butual 1 



bilitation or davelopmei 

Secretary shall pern: 
imate units of local 
twhalC ot their ■embecrs. 
nceed 5O,D00. ftny sbout 
froa the state allocatior 

Review aiw) Audit—The 
view and audit proqran 
it of local 90vernnenl 
tivities in a tiiuly n 
rry out those activiti 
■e of a Stats adainist 
) distributed the resc 
«lth pEograa requlr^enl 
of local goveriaentB to 
■tcrstary aay adjust, re 
» grantees or take othc 
(Tlaw findings, except It 
B eligible activities or < 
■vallable to the grantee. 
jlt of actions describef 
t year they becone 







aftotdability fot lo» 



of geogtaphi 
pply for assi 


ally 


e whose combi 
consortia sha 


ed populat 
1 be dedoc 



ither the grantee 



require owners of properl 

rifled IncoBe data and ot 

prescribed by the se 

basis. The infornati 
:an be aggregated at a r 



yGoot^le 



1985 and each flacal year there 
to Congress on the overall pro^ 
all pcogcaxi objectives, Incljdi 
services dellveced, beneflclsri 

Conforming flmcndmenta 



under Sec 


. 223(fl, 


secut 


Bd by property wh 


ch 


is to b 


rehabilitate 




ped under 












tha 


: (1 




e ben 


efits shall equal 


th 


sume o 


: (a) 90 pe 


cen 




le moprCgage on 














the d 


ate of acquisition 




the property 




rwise 






and (b) 90 peccan 








he date beneti 






tg 


ge Bhal 




the 




tary, for 










nd, 90 per- 




of a 




B Of 


the property, incl 


ud 


ng sale 








e luortgag 




-tual and reasonable 




lated to 'the 


property 










benefi 


3 shall be 






ash, unle 




Mortgagee submits 






request toe 






payment! 


and ( 








anca may 


rei 








He mortgage amount 








ins 


ranee 


conpany or wit 


li a State mortgage 






agency. No 


ins 


ranee 




t may 


be issued on or a 


ft 


r October 1, 1985. 




Sec. 


303(b) states 


that any purchase 


or 


refinancing under 




Ion 2Z3(£) involving 


property rehabil 








und 




. 17, the 




tary may: (a) inc 






U tat ion or 




lopme 




















he limit by 25 per 








(b) 


petmi 


t Bubordi 


ated 


iens securing up 








■ortgage 


financing 


by St 




nra 


nts or 


heir agencie 



yGoot^le 



TITLB IV—FROGBAH AHENDHEHTS I 



t Nortgajje Ina uranea Prog.?™! 



Sjbsect ion 


(a) 


extends t 


rough fi 


ca 


yeai 


19S5 S 


c 


2(a) 


operty inprov 


e>en 


and nanu 


actui-ed 


om 


loan 


insura 


= 


prog 


Subsection 


(b) 


e« tends t 


rough fi 


ca 


year 


1985 a 


1 


FHA 


rtgage inauta 






der the 




ority 








eluding Sec. 


201— 




moi-tgag 










07— r 


jairtg insuran 






ooperati 






i insur 






B-rehabiltiat 




nd neighboiliood co 












c. a2J— Boctg 


ago 


nsucance foe servi 




nr Se 
























g urbi 


■as and for e 


Kiit 


ng nultif 


iHiilv hoj 


i" 


proj 


Cts; S 






j.ing £oi the 




rly: sec. 








s: sec. 






p.ri«ental ha 


using 


7 Sec. 23 


—condom 




ms; S 


c. 23T 




pecia 




Sec 






fee 5 


mple ti 


c. 241— supp 




al loans 






ly ho 


aslng p 






c. 242— hosp 
lilies. 


tals 


and sec. 


243--h™n 


ow 


et-hip 




" 


e-lnc 


Subsection 


(cl 


extends t 


tough fi 


ca 




1985 S 


^ 


221- 


using Col: tnodecate 






famil 








subsection 


(d) 


extends t 


rough fi 


ca 


year 


1985 S 


c 


2 35- 


■ownership [ 


ot Ic 


wee incom 


fa^ilie 












Subsection 


(e) 


extends t 


rough fi 


ca 


year 


1985 S 


c 


244- 


ijcance on a 


co-ir 


Burance b 


sis. 












Subsection 


If) 


extends C 


rough Cl 


ca 


year 


1985 S 


c 


245- 



:endB through in 



yGoot^le 



186 

rough fiBCOl year 1985 Sec. llOKa)-- 
T Hay Be 

sec. 402 extends foi- fiscal yeat 19B4 and 1985 the suthocity 

princ^ipal amount not to exceed S50.9 billion, and requires the 
Secretary to enter xnto commitments up to that amount suOject to 
the absence of qualified applicants. 

FEDERAL HOUSING ADHTN ISTRATION 



Secretary's authority to set the naxinun interest rate on Bost 
FHA programs. Loans insured tftrough the FHA program may bear 
interest at such rate as agreed upon by the mortgagoc and mortgagee. 

Minimum Property Standards 

Sec. 405 maintains the energy performance requireaiBnts 
incorporated in the minimum property standards in effect prior to 

safety, properties insured under the National Housing Act shall 
CCinply with one of the nationally recognized model building codes 

Che nationally recognized model building codes or their equivalent. 

determining the comparability of the State and local codes to 

ccmptlance purposes, an appropriate nationally recognized model 

secretary determines the adopted code is not comparable. 

Time Payment of Mortgage Insurance Premiums 

premiums for single family programs be paid prcmptly upon receipt 
frcm the borrower and in the case of multifaraily mortgages, that 
they be paid promptly when due the Secretary. 



yGoot^le 



m In»uranc« In fTtcan Baaoa 



Sec. 407 Mkas all PBA inBUrancs progr 




taerican Sanaa. 




AasiamenC of Sec. 221(a)(1) Hottoaoes to G 


NMA 


Sec. 408 ataCas that In proceaalng a e 


lain for insorance 


benefits under Sec. 2Zl(g){4) of the Nattan 


al Housing Act, th 


Secretary may direct the Bortgagea to asslg 


n transfer, and de 


the aortgage and credit inatruMnC to GNHA. 


Upon the BBBignn 


to GNHA, the BorCgsge insurance contract 8h 




■ortgagee ahall receive insurance benefits. 


GNHA ia authoirii 


to accept these loan documents and to hold, 


service, and aell 


■uch loans aa agent for the Secretary. The 


aortgagor'H oBlig 


to pay a aervicea charge in lieu of a pren: 




long as the Mortgage Is held by GBMA or the 


Secretacy. 


TecMinatlon of the Sec. 221 Buv-Baefc Ptovts 


ion 


Sec. 409 liBilB the See. 221 loans tha 


t can be aaaigned 




into before the 


affective date of this proirision. 




Subpart 2 - Slngle-Faatly Hortgage In 


surance Programs 


Title I inaurance for Exiattna Hanufactured 


Hones 



Sec. 415 provides FHA Title II insurance for existing 
Binufactured hoaea that Here constructed in ccapliance with the 
1$74 nanufactucad hi^e construction and safety standards, if the 
■anufactursd hoae Beets atandards similar to the mlnimun property 
standards for existing hones inaured under Title II. 

Ittereased Title I Loan Limits for Manufactured Honies and Lots 

Sec. 416(b) increases the loan anounta to $42,S00 for 
■anufactured hoaasi $54,000 foe conbtnation hone and lot loansi 
and *13,500 for lots. 

sec. 416(b) allOHB the Secretary to increase the maKinum 
loan anounts on an araa~by~araa basis as necessary for hone and 
lot loans and lot loana, but not to exceed the percentage by 
■hich the loan aaount for a single family home in the area is 
Increased . 

teflnancing Manufactured Henea 

sac. 417 permlta owner-occupied manufactured hcflnes or hone 
and lot coabtnationa purchased without Title I ' 
teflnanced under Title I if it meats standards 
tlie National Manufactured Housing Construction 
Act of 1974. 



17-922 O - 84 - 



yGoot^le 



Tewp orarv wortg»g» *»»t»tance p«yenf 



sec. 419 provides that Individual cooperativ* units In 
buildings whose construction hsb coaplatad ona yaar prior t 
application for FHA Insurance ara eligible for aortgage ins 
and the cooperative no longer has to be nonprofit to be eli 



I mortgage lialts egual to 

Sec. 420(c) •tatee that if • condoalniun unit Has converted 

B rental housing, no Insurance may be provided unlessi (1> the 

conferslon occurred one year prior to the application for insurance] 

'") nortgagor was a tenant of that rental housing; or (31 the 

•rslon Is sponsored by a tenants' organization representing a 

rity of the households. 

Fanlly Mortgage Inaurance on Hawaiian lalands 



Sec. 422 provides for insuring one- to four-CaBlly homea on 
Indian reservations. 

FHfi single Family Premluns 

Sec. 423 allows HUD to increne the applicable >axl>iui aortgage 
amount by the anojnt of the up-front insurance pranlun charge If 
the secretary detecalnes that it does not comprciiiiBa the actuarial 
soundness of the FKA insurance fund. 

Loan-To-Value Ratio for Kodeatly Priced Single Family Homes 

Sec. 424 changes Che loan-to-value ratios for single family 
hemes to 91 percent if the property la appraised at SSO.OOD or 
less. This change takes place only if the Secretary detemines 
it will not adversely affect the actuarial soundness of the FBA 



yGoot^le 



■onoeeupiit Slngl* F— llv Horto«oor« 

sec. 425 Inccvssaa tha uxlauH Bortf 
OWMt, aingl* f«Bily unlta Insurad by FBJ 
or tS parcant of the appralsad valua of ' 

Tanwnt of Clalaa without Acqulaltlon o: 

Sac. 43( glvaa tha Sacratary diacn 
to aubait Clalaa on forecloaad Inaurad i 
■ad bo paid without transfarrlng title ' 
property for at leaat 
■Kiraiiclata adjust 



B Of 



la Ion 

BBued prloi 

In tha avant of foreclosure. BUD pa] 
dilfecance betoaant (1) the outstanding 
adjusted fair aarkat value) or (i) the oi 
■n) tha Bala pcica at foreclosure. 



Structural Defee 



Title 

Ion to pecvlt Kortgageea 
ngle faaily pcopertlea 

hUD upon sale of the 
ue. Including any 
applies to ccanitBants 
and with the approval of 
tha date 



esser of the 

tatandlng Indebtedness 
1st reimburse lenders 
[•faults exempted fron 
ig assignment program 
lents Program. 

Hew Hoaes 



lalnsuranca paaonstratti: 



sac. 428 authorises a demonstration mortgage 
jraa in order to determine whether the process 
Lly Bortgages by private mortgage ii 



processing. The demonstration 
Imlnlstrative regions and not 
ifore September 30, 19S5. Th 
lana Insurad under tha demona 

the total FRA-insured loans fo 



<f FHA Bingls 

ind the time required for 
Mill be limited to two HUD 
result in the loss of HUD enploynent 

aggregate number of mortgages and 
ration is limited to 10 percent of 

the region in the preceeding year. 



required to: ITT share any 1 
parcentage of loss to be set 
credit approval, claims proce 
other functions as set by reg 
[•gulre participating coopanl 
mrtgagea offered by the Sect 

Evaluation Report - — The 5 



rtgages ins 


red with the 










The Secrets 


y shall 



Ihe program on the characteristics of 
roialning wholly under the applicable insiirai 
•ctuarlal soundness of such funds under such 



pool of mortgages 



yGoot^le 



Subpart 3 - Hultll 



Dtaeccttonacv Authori ty to Ryiulat* B » nt B or Charq«« 

Sac. 431 gives ths Secr«tary diacrationary authority to 
regulate renta and rates of return dn jHSubsidized naured 
projectB. Thia amendnent does not apply to Bortgagsa Inaurad 
before the date of enactsant of thla Act. 

Reaoval of Batinanetng Llwltattona on Cartaln Hultttawlly Projacta 

Sec. 432 raw>ves current raflnanclng llBltatlona on sac. 330 
and Sec. 331 projects to facilitate aubstantlal rahabilltatlon of 

Limitation on Prepayent of Mortgagee on Hultlf^tly Rental Houalng 

Sec. 433 anends Title It of thi 
requests by project oxners on the pi 

Conditions — The Secretary ahall not accept an offer to prepay 
ttie mottgege on a rental housing project unless the Secretary has 
( 1) determined that the project no longer meets the rental housing 
needs of lover inccne families in the area Of that their needs 
can be Bore effectively and efficiently met throjgh other federal 
housing assistance programsj (2)(a) deterttlned that tenant a have 
been notified of a prepayaient request, (b) provided tenanta the 
opportunity to coaiaient on the request, (c) taken these ccauaants 

nto considecatlon; and {31 ensured that there s a plan for 
piovid ng relocation assistance for adequa 
for tenants who w 11 be displaced as a rea 



right to prepay the mortgage without 

the Secretary shall give priority for aaaimonai bec> d asaiscance 
to teTiants and applicants to becoae tenants of the project If: 
(1) funds are available; and (2) the assistance is necessary to 
prevent the owner from prepaying the mortgage. 

Any project omer who receives additional Sec. B sasistancs 
shalli (II fully utilize the available assistance, (2) grant 
priority to low IncoBe applicants to becoara tenantsi and (3) aaln- 
tain the low Income cliars^tLei of the project for the remaining ten 
of the mortgage to the extent that assistance is provided. 

Sec. 434 clarifies HUD's author 



yGoot^le 



IJOM Parta tor the Bl darly 



s«c. 436 Bakaa public hospitals eligible tor mortgage 
irancs undar Sec. 242 of the Hstlanal Housing Act, and e 
public tkispltals to ptrovlde esaentlsl services to coamunlty 
-Mldenta ■ithout regard tO their ability to pay for such i 



InJexad HortO«ae« 

SAC. 441 panilts a danonstratlon progra 

wrtgages in irtilch aonthly payasnts and ogte 

talancea are adjusted periodically according 

. apaciflad price or iiaga Index. The Secrsnairy unaii give 
rity to Bortgagea executed by nortgagors who have not owned 
ling units within the preceedlng 3 years. Regulations to 

conduct tha danonstration shall be laaued not later than Karch 

Jl, 1984. The aggregate number of aortgages and loans Insured 
' r this title is Halted to not nore than 10 percent of the 

total Title II loans Insured In the preceedlng fiscal year. 

Craduated Payment Mortgages for Hultitaifiily Housing 

Authority to Insure — Sec. 442 amends the Sec, 245 Graduated 
payBietit notLgsge Program to provide that the Secretary may insure, 
iniec any provision relating to ■oltifanily housing projects, 
nrtgagas and loans with provisions of varying rates oE anortiiatlon 
corresponding to anticipated variations in project income, to the 
extent the Secretary determines auch mortgages or loans; (11 have 
pcsais* tor expanding housing opportunities or meet special needs; 
'" can be developed to include any sateguards for mortgagors, 
nta, or purchasers that may be necessary to offset special 
lisks Of sjch mortgageai and (3) have a potential for acceptance 
la the prlvat* nacltet. 

Conditions on Principal Obligations Insured — Sec. 442 provides 
notvithstanding any other provialon of this title authoriiing the 
Secretary to insure OPHa, the principal obligation of a mortgage 
or loan insured pursuant to this subaectloni (1) may not exceed 
initially the percentage of the Initial appraised value or replace- 
*nt cost of the property involved that is required by the provision 



yGoot^le 



oE this title und«r vhlch such property ia Insucad; and (3) tbara- 
aCter (including all interest to be deferred and added to pclneipal] 
may not at any time be scheduled to exceed 100 percent of the 
projected value of such property. 

Property Value — For purpoaea of thin siibBactlon, the projected 
value of a property shall be ealejlated by the Secretary by 
Increaaing the initial appraised value of such property at a rate 

ftd]U5table Race Wot tq agg s for Slrijle Family Houamg 

Authority to InBai-e --Sec. 4*3 allovs the Secretary to Insure 
single family adjustable race mortgages (ARMS). Intereat rate 
adjuatments nay be accomplished through adjustments in the Monthly 
payment amount the outstanding principal balance, or the mortgage 
term or a combination of these, except that an extension of a 
mortgage term may not result in a total tarn In excess of 40 years. 

Interest Race AdiuEtnients --interest rate adjustaents shall 



by the Secretary in regulations. Adjustne 
on an annual basis; (2) be limited, for an 
more char one percent on the outstanding 1 



BequlrMsnts — The mortgagee oust provide the borrowar a 
written explanation of the features of on ARH, including a hypo- 
thetical payment schedule displaying msxlBum potential Incre 
in monthly payaents over the first 5 years of the mortgage. 

The aggregate number of mortgages insured under this se 
sec. 245(c), and Sec. 252 may not exce "- " 

gate number Insured under Title II dur 

Shared Appreciation Hortqaqea for Single Family Housing 

Authority to Insure— Sec, 444 allowa the Secretary to insure 
shared appreciation mortgages (SAHs) for single fasily residences 
which: (1) provides for a mortgagee to share In a predetenlned 
percentage of the property's or stock's net appreciated value; 
(2) bears an interest race prescribed by the Secretary; (3) 
provides an amortization period not to exced 30 years, but the 
actual term (excluding any refinancing) may not be less than 10 
years; and (4) meets other conditions prescribed by the Secretary 

Sale, Transfer, or Default — The mortgagee's share of the 
property's or stock's net appreciated value shall be payable upon 
sale or transfer or payment in full of the norCgage, whichever 
comes first. In the event of a default, the mortgagee has a 



yGoot^le 



Low am) Hod Tat e incoa e" Tcnant a — The secretary ahall encourage 
k* uaa of thTs insurance by low anJ noderate inco*e tenanta xho 
Duld othecvlse be dlaplaced by the conversion of their rental 
DdSing to condoainiua or cooperative ownership. 

Sec. 444 alao requirea the Secretary to prescribe adequate 
HuuBer protections and disclosure requlirenents for nortgages 
nsured under thia section and other terms and conditions as nay 
b* appropriate. The aggregate number of mortgages or loans 
Insured under this section. Sec. 24^(c), and Sec. 251 may not 
ncead 10 parcant of aggregate number insured under Title II In 
tlw preceading fiscal year. 

Shared Appreciation Hortgagea for Wultlfanlly Housing 

Authority to Insure — The Secretary may insure multifamily 
■ortgag es t ha t i <1) provides for the mortgagee to share in a 

letetmlned percentage of the property's net appreciated value; 
(2) meets Othar condleiona, including limitations on interest 
B chargas. •■ required by the Secretary by regulation. 

CorxlltionB — The mortgagee's share of a property's net appreciated 
ja is payable upon maturity or payment in full of the loan, aale, 
transfer, whichever occurs first. The mortgage term must not be 
9 than 15 years eith payments at a fixed Interest rate sufficient 
retire tha debt over a period not to exceed 30 years. In the 

> of a mortgage not completely amortized during the mortgage 
■, the principal obligation of the mortgage may not exceed 85 

percent of the estimated value of the property or project. 

pa fault— in the caae of a default, the mortgage shall be 
itled to file an Insurance claim and receive benefits, excluding 
mortgagee's share of net appreciated value. 

Net Appreciated Value — The Secretary shall estoblish by 
J la t Ion the maximum percentage of net appreciated value payable 

> mortgagee's share. The Secretary will alao establish 
;]oBure requirements to asEure that mortgagors are informed of 



Sec. 446 amends Sec. 2a7(c)(l) of the National Mousing Act to 
■llov the Secretary to insure balloon mortgages limited to 10,000 
psr year. 



yGoot^le 



) Equity Cor 



-BJon Report 



Sec. 443 directs the Secretary to evaluate the exiatlng use 
o£ home equity conversion mortgages for the elderly and report 
to Congress not later than 1 year following the date of eract«»nt 
of the Act, The report shall include: 1) an evaluation of whathec 
the -JSI2 of this mortgage improves the financial sltjation or 
otheiuiso meets the special needs, of elderly homeovners 2 an 
evaluation of any risks incurred by mortyagors and recommeiidatlon> 
Cor saCeguacda to minimize such risks; i) an evaluation of the 
potential for acceptance of such mortgages In the private marketj 
and 4) reccmmendatlons for establlshnent of a federal program to 



— FLOOD AND PROPERTY 






he progr, 

xtends the August 19B3 
n flo ■ 



Insurance program for two years 
irough Septenber 30, L935: and requests a report by June 30, 1984, 
on the Federal Insurance Administration on the preaiuD rata 

3 an explanation of any anticipated 
id to be made before October 1, 1985; 
line for completion of risk studies 
1 September 30, 19B1; confers original 

Iving flood Insurance; changes the designation of adniniatratlve 
cer from HUD Secretary to the Director of the Federal BKsrgency 
gement Agency; and mandates that the premium rates charged for 
lood insurance not be increased during the period beginning on 
ind ending on Septenber 30, 1984. 

Crime and Rtot Insurance 



nkhole Inaura 



- local agency t 



yGoot^le 



fcMlblllty of vxpandlns the national flood Int 
ca*«r duuga or loss acislng Erom sinkholea. ] 
tl aillion to carry out the study. 



PART C~RBGULAT0R1 AND OTHER PBOGRAHS 
»aal Estate Sattlewent Procedur 



Definitions—Sac. 461 definea the term, ' 


controlled business 






a position to refer business incident to or a 


part of a real eatate 




ed mortgage loan, or 


■n associate of such person has either an aff; 


Hate relationship 






percent in a provider of Hottleaent services; 


and (2) either oE such 




iness to that provider 


or affic-atlvely influences Che eolection of t 


hat provider; and 




, patent, or child 




business! (2) a 




is controlled by. 




31 an BMployer, 


officer, director, partner, franchisor, or fra 


nchiaee at such 


parsoni or (4) any person who tiaa an agEBenient 


, BrrangeHsnt, or 


undaratanding, with a person in a position to 








the person in a posltlCHi to refer settlement b 


usinesa to benefit 


financially from the referrals of such busines 




Disclosure of Controlled Business Relatio 


nshlp— Provides that 


nothing In Sec. 8 kickbacks and unearned fees 


^THEibitions shall 


bs construsd as prohibiting controlled busines 




as (A) at or prior to the tine of the referral 


a good faith effort 


i« Bade to disclose the eiilstenco of such an a 


rrangement to the 


person being referred and. In connection with 




provide such person a written estimate of the 


range of charges 


generally >ade by the provider to which the pe 




aicepC that where a lender makes the referral. 




be satisfied as part of and at the tine that t 


he asCLinateB of 


sattlenent charges and Che special Infocoation 


booklet, are provided 


u required under Sec. 5(c) of HESPAi (B) such 


person is not required 


to us* any particular provider of Bettlement B 


ervices, and (C) the 


only thing of value that is received frcn the 


arrangement, other 


than the payaents pemitted under this subsect 




the ownership interest or franchise relatlonah 


.p. Also provides 


that it is not considered a violation of the k 




fees provisions for a lender to require a buye 


r. borrower or seller 


to pay foe the service of an attorney, credit 


reporting agency or 


real estate appraiser chosen to represent the 




for an attorney to issue a title insurance pol 


.cy directly as an 


igent or through an agency operated as an adju 


net to his practice. 



yGoot^le 



! of BESPA provlsi 



State Law Gov err 
law or regulation tha 
controlled 
1 neons Istei 

risdtct 



1 Controlled Bualni 



oe RESPA Sees. 



) nay ba brought 



: jui 



:t in which the property involvei: 
Lon is alleged to have occurred, within on 
t the occurence of the violation, except t 
t by the Secretary, the Attorney General c 
}urance Ccounisa loner of any State nay be b 



Authority of t 


e 


UD Secretary-- The S 


cretary nay inve 


tigaCe 


ny facte, ooSditlo 




practices 


or matte 




nay he de 




ecessary or proper 














f this Act, in pre 


cr 


binq of r 


les and r 


gulat 


ons thereu 


dor. 


r in securing infotma 








ing 


urther legialation 




cerning real estate 




Bment pract 


cea. 


o aid in the Inves 


ig 




secretary is a 












chs. and 






a the 


ttendance and test 




y of such 










ocuments as the 5e 






advisable 










th 


"the*™r 


sdiction 


01 whi 


-h an inqui 


y i» 








ntumacy o 


c re£u 


saJ to obey 




ubpoena of the Sec 




ry issued 


under thi 




on, issue 


n orda 


eqiiiring conpliance t 




nd any fa 




o obey such order 


f the court may be 


pu 


ished by 


uch court 


as a 


ontenpt thereof. 




-T 


eso RESPA 


provision 


» shal 


becone effective 



on January 1. 1984 



yGoot^le 



■■ttocial InatitutB of Building selcncea 

sac. 4G2 ■uthorizea $250,000 for fis 
■•tional InstltutB of Building Sciences. 
■•d« availabl* for expenditure or obltgat 
that an equal aaount la received after Ch 
this sentence fro priv ' 



Solar Energy t Energy Conaervatton Etank 

Sec. 4e3(a) aakea air c> 
average energy efficiency am 
audit eligible for bank auba 



sec. 4e3<b 
kdvisory Coadiit 
their chalrpera 



sec. 4S3(c)l 



ivailable foi 



Idlnga whose Incomes exceed 
In the case of 



ts of two- to four-unit 
150 percent of the area 
esldential building that 

eceive bank subaidlea oE 
energy conseirvation 



sec. 463Ic)<ZI prohibits the Bank 
.stance available for energy consei 
projected energy aavlngs of auch aeaai. 

Sec. 463(d) atataa that, I 

tenant: 1} in the case of the 
:caaDerclal energy conaervlni 
-ant in writing that for defscta found 

laitallatton the owner or tenant shall at 
eceive replscenent parts, DUterials, i: 
.1 and 2) in the case of energy inprovc 



> year of 
jn be entitle 
nation at nc 
natal led by i 



the BUppllf 

see. I 
utility t 



also allows fundi 



ig for energy inprovenenta in 
ty or In areas served by a public 
een laade public under Sec. 215 
clan Policy Act or by the Secretary 



sec. 4e3Ce) directa the HUD 
cagulatlona within 90 days of em 
•olar systeBB eligible for asalsl 
lutallatlon of pasalve and actlt 
mter heating aystena in new and 
and aultifaaily residential bulldlngi 



type solar space 



yGoot^le 



eie>pt financing in connection »lth bank subs 


dies; 3) prohibit 


naking an energy audit a prerequisite for rec 


iving bank aasiatance 


4) limit adminlBtrative expenses to 10 percen 


{or a higher 


percentage determined by the secretaryl or S2 


,000 whichever Is 




be used by a State 


for its adminlatrative expenaeo, except that 






espect to financial 




ue all of the 


amount for ouch expenses; 5) establish criter 


a foe allocating 


funds to eligible financial institutions; and 


6) provide that any 


unexpended funds that are recaptured by the B 


nk shall be reallocat 


to eligible financial Institutions. 




Sec. 463(f) provides 535 million for the 


Solar Bank for fiscal 


year 19B4, and auch Buna as neeeasary for (is 


al year 19B5. 


Weatherization Program 





;c. 464 authorizes S190 million for fiscal year 1 
jms as necessary for fiscal year 19B5 for the DOE 
rizatlon Program with funds to renain available u 



1 for fiscal year 19B4 for the 



Sec. 466 authorizes $ 
/ear 1984. Of the amount 
cor a research prooram tha 
problems and provide solut 
Incentives to Implement th 



survey national, regiona 
conditions to provide da 
conducted In 1981. 



9 ■llllon for HUD reaearch for fiscal 
uthorized, 92 >illlon ia to be provided 
would identify public housing nanageaent 
ons Co chess problems, as well as develop 

I the secretary to, not less than blanniatly, 
, and local econcolc and housing aarket 
I comparable to that collected in surveys 






L Housing Partnt 



sec. 467 amends the Chartet 
CO authorize the HHP to plan, Ir 
and financing of housing, and tl 
acguiaition, and financing of cc 
facilities that provide amployme 
individuals of low and looderace 



:arry out the acqulait 

, rehabilitation, 
industrial, and retail 
Lees to famlllea and 



yGoot^le 



TITLE V~RURAL BOUSING 
sac. 501 cites this title as the -Rural Housing ADendmants 



!C. SOICa) states that the tenas -low-i 
i" and ■very lo«-inco«« fanllLea or per 
IS and peraons whose incone levels do n 
^ive lave Is establlahed by HUD. 





Sec. SOKbl gives the 


terms 'Inc 


one- and 


adjusted 


income* 


the 


aame Hanlngs as defin 


sd by BUD. 








Sec 














Target inq Provislons- 


sec. S03(a 


) provide 


that on 


and aftac 


the 


effoctiva date of' on«ct»«nt of th 






to 


percent of tha dwelling 




need unde 


Sec. 502 of the 


Bousina Act of 1949 shall be availabl 




very 




ons; and ( 


2) not lee 






oe 


the dwelling units in e 






der Sec. 


502 be 


na 


liable for occupancy by 


very lo«-i 


ncome fam 


lies or 






Hanufactured Houslnq- 


Permits 5e 


e. 502 loans to be 


made or 


ins 


ured for a manufactured 


hone or na 


nufactured 


home an<: 




■heChec it la real, person 


1, or mixed teal and 




property 




1) it neets federal manufactured 




tandacds 


2) it 


■H 


ts HUD title II Inauran 






31 It ne ts Parmer 




Ad»ini strati on (FmHA) 


establlshe 


d energy c 




requlreme 




aanufactured housing, 


r until Fo 


HA energy 


standard 




■It 


sblished,. FmHA standard 


for houBl 






kaui 


mg. 












Bnerav Standards- -Ene 


gy consorv 


ing requlr 


eoents a 


all! 1) 








inqa and 




tffectivo over the lite of 




-tured horn 




loan term 



types of energy used, the cost of home modification to meet these 
itandarda, and tha esti>ated value of energy eaved over the mortgage 
ten; and 2) be established so that any increase in loan payiaentB 
u a result of energy i>provemente cannot exceed the projected 
•nergy savings of the change. 



yGoot^le 



Altarnatlve Hortq«ge» Transactions 

sec. 472 amends Sec. B05(a} ot the Gacn-SC Gemain Depository 
Institutions Act of 1'I82, uMch pemits States to override the 
federal pre-enption of alternative Mortgage Instrunent regulations, 
by pecalttlng StBtsB to partially override the federal pro-a«ption. 

Due-On-Sale Clause 



sec. 473 clarities that due-on-sale enforcement Is prohibited 
inly for single family loans secured by a lien on residential 
real property with less than five dwelling units, including a lien 
in stock allocoted to b dwelling unit in cooperative housing 



Liquidation ot wew Communltlas Progran 



PART D — SECONDARY MORTGAGE MARKET PROGRAMS 
ige-Bscked Securities Program 



Sec. 4B1 authorizes coamltwent levels for the Government 
National Mortgage Association's mortgage- backed securities progri 
at $6S.25 billion for fiscal years 1984 and U8_S_. 



Sac. 482 the GNHA c 



Special A»»i»tar 



Gee. 483 repeals the CHMA Tandem Programs and sllOMS any 
purchase or commitment to purchase before the date oC enactment 
to continue to be governed under these sections. 



yGoot^le 



lea this title as the 'RuebI Housing Amendae 



of 1983.' 



sec. S02(B) BtatcB that the terns 
peraonB* and 'very low-incoBte CaBilies 
iBBllies and persons whose income lave 
■respective levels established by HUD. 



Sec. 50Z ft nendients 



Targe 


ting ProvlaionH — Sec. 


f this Act 


(1) not 


on and after 


the etlect 


ive date o£ enactment 


lass than 


10 percent 


of the dwelling units 




der Sec. 


502 of the 


Housing Ac 


t of 1949 shall be ava 


labia for a 




by very 


low-incr»e 


fanllleB or persons; 


nd (21 not 


less tha 


n 30 percent 


of the dwelling units in each St 




under S 


c. 502 be 


■vail able 


for occupancy by very 


ow- income 


amilies 




Nanuf 


actured Bousing— Pemi 


s Sec. 502 


loans to 


be made or 


iosuridTS 


r a Manufactured home or nanuCactu 




and lot 


■hether it 


Is real, personal, or 


mixed teal 


and personal property 


IE: 11 It 


meets federal manuFac 


ured housin 






Beets BUD 


title II insurance reg 




nd 3) it 




ftse Adnin 


istcatlon (FnUAl established energy conser 


ing requlremen 




ctured housing, or unt 


1 FmHA ener 


gy stand 




•■tablishe 


d. PmHA standards for 


ousing othe 


r than m 


nufactured 


bouBlng. 










Energy Standards— Energy conserving req 


ulrement 


9 shall: 1) 










effective 








he loan term. 


■hichevor 


s shorter, taking int 




riatlons 


In climate. 


types of e 










standards. 


and the estioated value of energy 


saved o 


er the mottgag 


ten; and 


2) be established so t 






oan payments 


a* a resul 


. of energy Inprovemen 




ceed the 


projected 


energy sav 


ngs of the change. 









yGoot^le 



Energy Savings Report 

sec 503(b) directs the Seoretarlea o£ Agvlculture Ensrgy 
and HUD, within IS months of isBuance of energy conserving 
requirenentB regulations by the Secretary of Agrlculturs. to 

udy and trasmit to Congress a report analyzing the 
lue of energy savings for FmHA manufactured hone 

Housing Act of 1949. 

Loan Tama — Sec. 503(d) pentlta the Secretary to accapt 

'.lability of any person with adequate repaynent ability 
roaign an applicant's note. Permits at the borrower's option. 
;o prepay tanes. insurance, and other expenses as prescribed 
■y of Agciciilture to 

in order to permit an otherwiae 
ncome does not exceed SO 
Ian Incoae to afford to participate in 
the Sec. 502 program. 



. 502 loan not 



to clarify that h 



modernization, safety, sanltatl 
other repairs Including was 
atlon coats for central t 
ist Units on the amoun 
set by the Secretary. 

lervic e s and Research 






Standard* of Adequate Bous ing 

Sec SOe amends sec. 509 of the Housing Act of 194», to 
permit FmHA to approve residential construction standards if 
they meet I) minimum standards prescribed by the Secretary; 2) 
HUD nlnlmuD property standards: standards contained in any 
voluntary national Kdel building codes; or 41 In the case of 
manufactured housing. FmHA manufactured housing atandardB: rsqulrei 
that the Secretary ahall pronote energy saving techniques through 
standards for newly constructed residential housing consistent 
with standards established under Sec. 5ZS of the National Housing 



yGoot^le 



Gnwral Authority oC. tha Sacrecary 

invantary Prppartles — Sac. 507(a) gives the SecreCarj 
MtlMCity to transfar Sac. 502 inventory properties for ui 
rantal or COoparatlve housing under Sec. 515 with mortgage 
M-year terms ava labia to nonprofit organizations or pub] 
bodtaa. A transfer may be Bade even where rental asaiatar 
Hy b* required IE auch aaslstance Is available. For verj 
IncoBS persons or Eauiliasr the transfer may be nade at tt 
laaaar of tha apprataed value or the FaHA inveatnent. 



Fee Inspectors ^nd topral ser s - -Sec . 
■etacy to utilize fee Inapactoro and . 



507(1 



luthor 



inapactoro and appraisers to procoas 
loan ano grant applications where a county or district office Is 
unable to expeditiously process applications and provides that 
tha Secretary aay Include the cost of such services in the amount 
of tha loan. 



Sec. SOB rapaala proviaio 
of 1949 dealing with the total 
obligations purchased between 

Sec. 509 repeal* Sec. 513 i 
provided PbHA authority to aaka 
Sec. 501 loans during 19S6 and 



sec. 510 provldaa that foi 
farmworker houalng asalatance. 
consideration the bousing neadi 
Including migrant fatHWorkera, 
Other houalng naeda in the arei 



Program Authortiatlon Leveli 



Sec. 511(B) authorises such 
PbBA*b overall loan acctivlty toi 
also authoriiea auch lunii aa 
lia« and 1985 for Sec. 504 h 
509 t construction defect p. 
aggregate contributions made 
Sac. Sl6 fan labor liousing i 
help housingi {ot Sec 525(a 
grants) and for the adn n sti 
■•c. 8 (low Income homeowner and 
antborlses tlOO million tor each 
frogram, of which 9 percent shal 
The Secretary may enter Into rental 
fee. 521(a)(2)(A] In the amour 
Act* for fiscal 1984 and 1985. 



of sec. 511 

-Incipal amc 
16 and 1969. 



: the Housing Act 



18 as may be appropriated fc 
seal years 1984 and 19B5. 

ipprOpriated f 



■ los 






for Sec. Sll equal t 

or Sec. S23 mutual and self- 
sory and technical assistance 

sec. 235, Sec. 236. and 
al assistance). It also 

for the preservation grant 
used for technical assistance, 
aslstance contracts under 
ay be approved in appropriation 



37-922 O - 84 - 



yGoot^le 



Section S15 Anendnents 



foe 


newly canBtructed or 


aubatanCially rehabilltatea elderly project! 






jal operating cost IncreaBea Incurred or 




amount of operating ■ 


:oat IncreaseB in ccmparablo rental dwelling 






lie dwelling unite exist, the secretary 


aha! 


1 have authority to i 


ipprove rent increaaeBr 




LimitB eOBt incceaa. 


IB in newly constructed or Bube tant ially 




raeen'fa'' ''rE^be"nd' 


) those approved by the Secretary for: 1) 


unfo 




the owner's ccontrol; 2) design changes 


requ 


ired by the secretac; 


f or local government; or 3) changes In 


tina 


ncinfl approved By thi 


) secretary; 



Provi 


des that in t 


to demons t 
applicant 
■UBt demor 


istrate that: 



Directs the Secretary to give preference in entering into 
sec. 515 contracts to those projects located on specific tracts of 
land provided by States, units of local governnent, or others for 
the purpose of achieving the lowest cost. The Secretary Buat 
deteciDlne that the land is suitable for such housing and that it 
is cost effective: 



! case of any applicant using Sec. 521 
:s, the Secretary shall require the applicant 
Ligible market exists. In the case of an 
local governinent assistance, the applicant 
1) market exists for the proposed projectj 
il rental assistance will be provided for a minimuB of 5 years and 
that rental market exists for the term at the loan; and 3) the 
State or local rental assistance will be available annually) 

Directs the Secretary to establish standards for repair and 
rehabilitation that meet levels of quality or performance be coaparable 
to those established by UUDi 

Provides that the Secretary may not deny Sec. 515 or SOC. 521 
assistance because a project is located on more than one sltei 

Provides that the Secretary Day not: 1) deny Sec. 515 assiatance 
on the basis that rental assistance payments nay be required in 
connection with such loans: or 3) prcoulgate any regulation that 
will have the effect of denying occupancy to eligible persons on 
the basis that they require rental assistance paymentai 



yGoot^le 



tor occupancy befc 

low inccoe faMillss otner tnan very low incone tamiiisa; Z] not bo 
ttwn 5 percent of the duelling units vhich become available for 
occupancy on or after the date of enactuent shall be leased to 
lov incoae faalliea o'ther than very low Income persons and that 
units In Sac. SIS projects which become available for occupancy 
after the date of enactaent shall not be available tor occupancy 
by Individuals other than very low inccane Eanllles and persons 
it Che rental assistance authority is available; and 

Provides that in determining 
conaider the value of that familj 
■aae aannar as the BUD procedure. 

Conversion Loans — Sec. S12(bl amends Sec. SlSfb) to 
provide that loans aay be made to owners who are otherwise e 
under this section to purchase and convert single family res 
to two or Bore rental units. 



) amends Sec. 515 



losns to be Blade or ins 
(including those on sea 
mmershlp. 


t-^-d^-s^te^T 


'if a 


nvolving 
vailable 


Zt 


gh cooper a 








sec. 


512(e) 


efines the 


term 


kouslng to 
lot* and h( 




Ived. 


or 


im. 


Labor 


Housino 















sec. 513 provides that the Secretary shall, to the extc 
approved in appropriation Acts, utilize not more than 10 pei 
of the aaounts appropriated for Sec. 51fi grants Cor Cinancii 
Ulistanca to eligible private and public nonprofit aganclet 
ancoursQe the development of dcoestlc and migrant farm laboi 
housing projects. 

Insured Rural Housing Loans 

Sac. 514(a) amends Sac. 517 of the HouBing Act of 1949 
provide that the amount of loan made or Insured to low Incoo 
tHllies under Sec. 502 shall not exceed the amount neceasai 
provide adequate housing which la modest In siia. design, ar 

Sec. 514(b) resuives the authority to utilize the Rural 
lousing Insurance Fund for making construction defects conpc 
psyissnts pursuant to Section 509(c). 



yGoot^le 



sec. S14(cl repeals the authority requiring that £0 percent 
of Sec. S02 and Sec. 515 loans benefit low Inccone persons and 
that 30 percent of assistance available in any State area In a 
fiscal year benefit persons with incomes below 50 percent of the 
nedian inecae. 

Sec. 514(d) states that the Secretary prcnulgate rules Hhich 
encourage the rehabilitation or purchase of existing buildings to 
provide housing which is econcnical in cost and operation. 

Definition of Rural Area 

sec. SIS provides that a rural area with a population in exce 
of 10,000 but below 20,000 is eligible to participate in PaHA 
housing prograas through the end of fiscal year 19SS, as long as 
it has a serious lack of mortgage credit for lOnBr and moderate 

Shared Elderly Housing 

Sec. 516 provides that rural rental assiatance payments 
shall be permitted for elderly and handicapped persona who elect 
to live in shared housing in a single family dwelling and provides 
that the secretary shall issue BinlBun property standards or 
nodlfy existing standards for such shared housing. 

Rental Assistance 



sec. S17(a) removes the TO percent unit limitation for 
assistance payments in multlCanily projects and the requirement 
that the Secretary give priority to projects in which assistancf 
is providsd to 40 percent or less of the units under Sec. Sillal 

Tenant Contribution-'Sec. Sn(b) states that In the case of 



rental Bsslstai 


ICO, the tenant r 


ent 


contrJ 


.bution shall no 


t exceed 


the highest o£i 


1 (il 30 percent 


of 




inthly adjusted 




(ill 10 paroenl 


t of the monthly 






: (ill) the port 


ion Of 


the family's w< 


>lfare payMnt de 


Bigi 


nated 1 


:or housing cost 


. In the 


case in which Sec. SIS Interest 




edits I 




where nc 


rental asslstai 






liable, 




is 


established on 




pe: 








service. Rent 


payment increase 




re limi 


ited to 10 perce 


nt in ani 


li-month period, unless the Inc 










in inccM. 












Sec. snd 




CO 


ntribul 


tion reaulrenents to con- 


form with those in sec. 517(a) 


of 


this Act for Sec. Sil( 


a)(I)lA). 



sec. S17<d) amends Sec. 530 to state that the Secretary may 
C approve rental payment increases for units in which tenants 
a paying In excess of 30 percent of their lnc<ne for rent. 



yGoot^le 



Rantal A>atatance Prlorlt}^ — Sec. 517(e) provl 
Saeratary ahall: ' iT~ex teiHTexpielng rental aaslst 
for unita occupied by lent incooe families and pere 
aitant funda raaaln available, be used for contrac 
nry low Incove faalllea or peraona. eicepC that l 
at the units aay be for low ii 
rcaainlno funda. provide aeai. 
aould becoate occupied and 



The Sacrs 






to exiBting projects which 

by very low income individual 
nlta may be for low income 



iny 12-month period. 



Effective Date — Sec. 517(fl states that the amondmenta Bade 
t>y this section ahall take effect 6 aonths after the date of enac 
>ant of this Act or upon the earlier prcaulgation of regulations 
by the secretary. 



Technical and Supervisory Asststance 

sec. 518 rsBoves the authority of 
cancel repaymant* of Sec. 525 technics 



I Secretary to waive 



redundant terms i 



■ 526 of the Housing 



TEA Inaurance 

sec. 520 adds a new section to Title V of the Housing Act 
□f 1949 to authorite ths Secretary of Agriculture to act as an 
agent for hud to ceccnBend insurance of any siortgage meeting 
BDD/FHA sec. 203 loan regulrenents. 



' *PPJi< 



ittor 



Sec. 911 adds a new section to the Act that provides that 
In pcocesatng applications for PmHA assistance the Secretary 
ahall give priority to applications Eron persons having the 
lowest IncoMSS and the greatest housing needs, to applicants 
■tioaa projects will serve such persons, and to applicants reaidlng 
in areaa which are Boat rural in character, in nsking assistance 
available, Che Secretary shall provide a preliminary reservation 
of assistance at the tiae of the initial approval of the project. 



yGoot^le 



Rural Hou 




Sec 


bi2 p 












of at 


project" 


for lov 



] for rental and for 



sffordabll ty foi 



Jao_j9f_Fundi~The asiisi 
intB to single family hi 
npcovementa; 2) provide 



: ie. 



Lay be used to: 1) aak* loan* 

i9t reduction payiaenta; 
not to exceed 15 percent of t 
designed to reduce repair and 
• such houBing affordable by loa 1 
by pert " -- ' ■■ ' " 



jible, 

i and faBllies 



s and fa 

icooe; 5 



tth and safety condlt 
allocation of Funds — l 



: funds for use in each 
I population of thi 



State and the rural popi 

ol poverty in that Stati 

Itates; and 3) the e. 

of that state and t: 



9 FbBA 
> grantee 

1 than SO percent 



and the projected progress in carrying out th 
Btateiosnt shall be available for public ccniDen 


38e activities. 
in preparin 


statement, the grantee shall consult with and 


onsider the 


B of appropriate local officials. 




Proiect selection Criteria—The Secretary sha 


1 evaluate the 




the activities 


ossist low ncoine persons in need of adequate 


shelter (ulth 


ec of pecEona and families whosp incomea do no 


he DBxl»u> 
exceed 50 







r private organii 



tions providing fir 



yGoot^le 



to lowsr th» cost of such projects; 3) the extent Co ohlch 
ictlvltlaa will ba undertaken In rural areas having populationa 
Mlcur 10,000 or In rewit* parte of other rural areaaj 4) the extent 
te which th« repair and rehabilitation activities may be expected 
te result in achieving the gceBtest degree of repair or iBproveaent 
(or the l«aat cost per unit or dHelling; 5) minlnal displaceaent 
bf the program} G) the alleviation of overcrowding In rural resl- 
dtnces inhabited by low and very low income persons and fanlliesi 
T) ainiBal uas of grant funds for adminiBtrative purposes; and 
II agreeaiertts by the owner to rent to low income Csmllies and 
ptrsons longer than the required 5 years. The Secretary ahall 
uaaas the capacity of the grantee to carry out the program and 
tba financial feasibility of the program. The Secretary shall 
jroiide the least aaount naceesary to repair and rehabilitate 
iMilng of Modest design that is affordable for low inccoe peraons. 

Ter»« and Conditions of Assistance — Assistance will be made 
to rental or cooperative housing only Ifi a) the project owner 
agraea to aasure ccapllance with the program's requirements and 
aaiures that the project is financially feasible; b) the project 
(Mnar agrees during the S-year period beginning on the date on 
lAich unifca are available for occupancy: 1] to pass on to tenants 
uy reduction In debt service payments resulting from thin 

cooperatives. 3) not to refuae to rent to tenants receiving other 
tDUsing asBletance, and 4] that repaired and rehabilitated units 
Hill be occupied or available for occupancy by low income pereons] 
e) mite of local governnent and nonprofit organizations that 
*pply ^o adBintster assistance will certify that they will confom 
Nith the provialona of P. L. BB-352 and 90-284 (the Fair Bousing 
Lavs); d) the owner agrees to enter into and abide by written 
laaaes which provide that tenants may be evicted only for good 

and rehabilitation and to have a diaintereBted party inspect 
tbose repairs and rehabilitation. For homeowners projects 
IBslstance aay be provided only IE there Is ccmipllance with: the 
fair Housing Lawsi In addition any other requirements that the 
Iscretary say establish to carry out the purposes of this section. 

failure to Carry Put Agreeaents — Provides that if owners of 
properties assisted under this section fail to carry out the 
agrecaents, the project owner or succeeaor must repay the assistanct 
•ith Interest and that any aseiatance provided shall constitute a 
debt and ahall be secured by the security instruments provided by 
the owner to the Secretary. 

11 make advances of the 



—The Secretary shall am 

Ths Secretary Bay adjui 

ide available to granteei 



yGoot^le 



procedures which auppoct national hiatocic preservation objectives. 
It any rehabilitation would affect property that ia included or 
eligible for Inclusion on the National Register of Historic Places, 
it Hill not be undertalien unless: 1) it reasonably meets standards 
issued by the secretary of interior and the appropriate State 
historic preservation officer ccnnents on the plan, or 2) the 
Advisory Council on Hiatoric Preservation ccoukentB, in consultation 
storlc preservation officer, on cases In which it 
t the rehabilitation cannot »eet such standards oc 
tiould adversely affect hiatoric property. 

Report — Not later than 180 days after t 
year, the Secretary shall report to Congrosi 
progress made in meeting the objecti\ ' ' 

summary of the use of funds '" """ ~" 
required to submit reports i 
the report required by this 

wiacellaneouB 

Sec. 523 adds a 
rules and regulations 
for at least 60 days 
far* before they becc 

all proposed rules and regulations to the Senate and House Banking 
CoBBitteea at least 15 days before they are published in the 
Federal Register, except those that the Secretary certifies as 
being issued on an emergency baaia. 



section 


to the Act 


that requires FmHA 


be publi 


Hhed in the 


Federal Register 


public c 




30 days in final 






etary shall transmi 



Sec. 524 directs the Secretaries of HUD and Agri 
VA Administrator to establiah no later than January 1 
total reciprocity for housing subdivision approvals. 



yGoot^le 



as. HOUSE OF REPRESENTATIVES 



AGREEHBNTS OH HOUSING BILL 



Set forth below i 



. period specified by t 
t nors than 3 yeacs, the princ 
lot lesH than 51 percent of CC 



lent cities and urban counties that have fallen bel<: 
lation thceahhold (50,000 and 200,000) due to the 1980 
lauB would be grandfathered for the entitlement 



Ilea between 50 and SO percent of median Income could be 
feea for capital inprovements assisted in pact by CDBG 

the coamunity certifies that additional CDBG funds ace 

t to cover those activities. 



1 for FY '85. 
extended for 



yGoot^le 



:3ted H 



ling 



forth in 


ppr 




necesaary 


for 










program a 




e 














housing B 






funds for 







■iationa acts for FY '84 and such suns as iiay be 

'es. Public housing, section 8 existing, and 
'OUld be maintained and a new voucher denanstration 
el of 15,000 units is established. Ho changes 
ic housing performance funding system or the 
public housing inoderniia t ion prograns. Public 

permitted to use FY 'B4 and '85 development 



bill will apply 
that local evict 



derly and handicapped person. 
Ir Market Rents in Section 8 he 
statute. Existing regulations 



retained 


but B 


tatutory 


lly reduca 


ten* 




a deduct 


on of 


$480 


Iderly or 


handl 


capped 


o£ 3 peree 


nt of 





I in the House 

I judicial proceeding 
ire established for 



Is funded at the option of oomn 
Existing Section 8 assistance i 
single room ocoupancy type stri: 



> facilities In publii 



bidding will I 



■ for Section 202 elderly housing la limited 
lan 9 1/4 percent for fiscal year '04. Coopetitive 
le reguired except where the Section 202 loan amount 
!d S2 million, or the Fair Harhet Rent does not 

sponsored by labor unions. The Revision and Consolidation ol 
the Section 202 Program proposed for FY '84 Is not included. 
The HUD/RHS Demonstration program to provide a workable connection 
between HUD housing assistance and HHS welfare housing aasistance 
is included St a level of SIO million for FY '64 and $15 million 
for FY '85. 



level for FY '84. 



yGoot^le 



Title III - R«ntAl BouBlTtg Rehabilitation 

SC15 Billion will be available for PY 81 a 
production prograB. In FY 84 S3S0 Billion uil] 
Billion to be uaed for rehab and $200 Billion t 
In py 85 $2fi5 Billion will be avallablet $150 n 
(115 Billion for new construction. 

to Bike available a portion of the voucher demonstration program 
for peraona displaced, as well as to support tne grantees program. 
Rehab grants will only be used in areas where the average Incoae 
of the residents does not exceed BOt of the area median incoae. 
IDOl of the fundi Bust be used for the benefit of low Incoae Camilic 
except in soae circumstances, a portion of the grant funds may be 
used to reduce the rents for units occupied by other Incone familieg 

determined 



L structure of the PnHA rural housing programs 
ilons for rv 'B4 and 'B5 provide such subb a 
iccordance with the levels set in Approprlat 
juBlng preservation program targeted at the 

this new prograB SlOO nllHon ie reapectf iilly authorized for eac 
fiscal year. The Section 51S rural rental housing program will 
priBsrily targeted to fanllles at or below 50 percent of area 
aedlan InccBe. The definition of income and the amount of tenar 
contribution to rent are Bade uniform with those established in 
the RUD housing assisted programs. 

Title V - niA Extension and Miscellaneous 

All of the PEA insurance prograBs are extended for PY 'B4 a 
'15. The Section 235 program is authorized for PY 'S4 and 'S5 a 
•Itch new budget as Bay be appropriated. A demonstration of in: 
for alternative Bortgage Instruments by pha, not to exceed 10 
percent of the Insurance activities of the prior calendar year is 
authorlied, except that Insurance for shell homes or reverse annuity 
aortgages are not authorized. PRA-lnsured conventional homes 
would be required to meet either one of the nationally recognized 
building codas or a local code the Secretary determineB is coaparable. 

The flood insurance program is extended for PY '84 and 'S5, 
is teninated. 



yGoot^le 



The RESPA provision is retained. The Solar Bank provisi 
? retained, except that the eligibility prowlsion for 
itlement communities were dropped. 

All o£ the secondary mortgage martet prowlsionB are 



yGoot^le 



SUIUJUIY Cff LEdSLATtVE ACTIONS ON EXPORT-IMPORT BANK, 

NTCRNATIONAL MONETARY FUND, INTERNATIONAL lENDINC SUPERVISION, 

AND MULTILATERAL DEVEL<»MENT BANK PORTIONS OP H.R. 39J9 

Th* toUowIng P*BM cenUln a tumnury of ii£nUlcant lesiiUtlvc 
action* In tte Hnw nd Scnata relating to the provUloiu contained In 
THlM Vt, YUt, IX and X ol the Senate amendment to the Houie imendnMnt 
to dw Senate aincndment number 11 to H.R. 1939, whidi became PiMc 
Law n-111. The wmmaiy Indude* hearini*, mtiiaip*. Committee action 
and Ploer action In both bodiet. Following the nimmary li a lectloi^^y- 
Mctlon analyila of Tltla VI thrau^ XI of the Senate amendment. 

(MB) 



yGoot^le 



AprU It, AprU IJ and AprU 20, l»>-^iearingi held on H.R. 2M1, to amend «ie 
Export-Import Bu^ Act of 19tl to establUi dw Competitive Tied Aid Fun^ 
and for other purpoiei, before the Sii>coaimlttee on International Trade, 
tnveltmenl and Monetary Policy. 



May 10, lSt3— Provliloni of H.R. 2St2, w ordered reported by the Full Committee, 
incorporated into Title 1 of H.II. 2997, and ttat bill ordered favorably 
reported by the Full Committee by roll call vote ol 17 aye^ It nayi. 



(For turttwr leglitatWe hbtory, lee K.R. 2997) 

SENATE 

MartA 22 and 24, DSS-Hearlngs held on S. t6», to anund the Eiport-Itr^ort Bank 
Act of 19*J, before the Subcommittee on Intemailonal Finance and Monetary 
Policy. 

April 21, 1M3— Committee on Banking Homing, and Urban Allaire mar1c& i^ S. 
■69, end ordered the bill, ai amended, faigralily reported by voice vote. 

May 16, l9I3~Repart fUed by Mr. Heinz In Senate on S. S69 (S. Kept. 91-111} 

n Porelsn Relatloni for 30 

3(«tB 30, 19S3— Hearlnsi held before Committee on Foreign Relatloni. 



July IS, 19t3-R«port fUed by Mr. Percy In Senate on S. tS9 CS. Rq>t. 9t-lt3} 
Sept. 23, 1913— Senate paned S. S£9, as amended. 
(For further legl*Utive history, m* H.IL 3939) 



yGoot^le 



Lqililuiw* Hitarr «f Interratkml Ucnetary Find ProvUoM 

aid fateriktlanal Lcndbif Siqienridan Act 

rntWs Vm and DC of Demectlc Hoi^iig and Intonatlaul Rccomy 

and Finuicbl Stability Act) ' 



rabnnry 2, S and 9, 1H3— Hearingt held on International finandai marlteti and 
niated problem* before the Committee on Banking, Finance and Urban 
Affain. 

2ff -21 
.Aprll^ and 32^ 1913— Hearingi held on reguiatory atende^ international lending 
reform propoaals and lupervlsory practices before the Siixuimmittee en 



tlay 3, im-Hoarlngl held on H.R. 27K, to ametxl the Bretton Voods Agreement! 
Act to autiiDrize an increaie in the United Statei quota In the International 
Monetary Fund and for other purpotes, before the Siiicommlttee on . 
international Trade, Inveitment and Monetary Policy. 



Uay 9, mS— Committee on Banking, Finance and Urban Affairs, by nice vote, 
ordered favoralily reported, as amended, H.R. 2930, to encourage the 
coordination of national lUcal and monetary policy in order to achieve 
■uatainable and non-inllationary economic growth on a world-wide baili, to 
•mend the Bretton Voodi Agreement! Act to authorize an Increase in the 
United States quota In the tntematlonal Monetary, Fmd, to reduce financial 
presumes on developing nations, and to Improve- the siq>ervlsion ol 
tntematlonal lending by United States banks. 

Hay 10, i9S3— Provlsloni of tlR. 2930, as ordered reported by the FuU Committee, 
incorporated into Titles II, lU and IV ol^^.R. 2937, and that bill ordered 
favorably reported by the Full Committee by roll call vote of 27 ayet. It - 
tiayi. 

n aR. 2930 <K. Kept. »t-I77) and on tUU 

(For tirther legliUtlve hlnory, tee HJL 2957.) 

SENATE " . 

Febriary 14, '13 and 17— Siiicommlttee on International Finance and Monetary 
Policy of the Banking, Housing, and Urban Affairs Committee held hearings 
on proposals to increase resource! of the International Monetary FinvL 

Fdruary 19 and 23, 19t3-Committee on Foreign Relations held hearings on 
propoaals to increase funding for tfie International Monetary Fund and the 
General Arrangement to Borrow, 



yGoot^le 



March IS, IMS-Committee «n Foreign ReUtlont mxlced vp S. i>9, to aniand ih* 
Brettot Woodi Agft/emtntt Act to withortee cantnt to >nd xnherlM 
appropriation! lor in IncreaM in the U^ quota In the tntcmational Monetary 
Fund and to authorize appropriation! for Inaeued U^ participation In the 
IMPi General Arrangementi to Borrow. 

n S. £93, ai amended 



April II, 19S]~Camm[ttee on Banking, Homing, and Urban Atfaln marked up 
S. 69S, and ordered the bill, ai amertded, favorably rqiorted by a vote of 15 
ayei,Onay>. 

May 16, I9S3-Report filed by Mr. Gam on S. C9), ai amended (5. Kept. 91-122). 

]unc7, 1913— Senate considered S. 69S but came to no reioiutlan thereon. 



(Per furthK legltlatlv« hUtory, *ee H.R. 3)})) 



yGoot^le 



OMaXo 



HIttarr •< IMtUatml Dm^ipnient Oudn PravUoni 
X of Doownlc HoiNlnK and biteniatkral Rosverr and 
St^lUtyAct) 



April IS Md aO, 19a>-H«arlr«( held on H.R. 2}g6, to provide for increuad 



id Urban Aflalri ordered H.R. 2832 

Uqr 10, lH3--Provl*io(U ol H.R. 2132, as ordered reported by the Full Cominlttee, . 
Incorporated inta Title V ol H.R. 29f7, and that bill ordered lavn-ably 
reponedby the Pull Committee by roll call vote of 27 ayes, 14 nays. 



tPor lurther leglilatlve history, see H.It. 2937) 



Pdiruary 23, 19B3— Hewlngi held on 5, 6tn, to provldelor U.S. participation In the 
ttdrd replerdriHnent at the African Development Fund, and ai proposals for 
replenlihmentt of the Inter-American Development Bank and the Asian 



April (, l)t3— Conunlttee on Foreign Relation!' martced k^ S. 609, and S. 9tt, 
provicdrv for US. partlclpatlixi In the sixth replenishment of the Inter- . 
American Development Bank's capital itodc, the seventh replenishment of 
the Fund for Special Operations, the 4drd r^lenlshment of the Asian 
Developmetit &aiJf's o^tal itodc, and the tfiird replenishment of the Asian 
Development Fund. The Committee ordered the two bills favorably reported 
at • new bill by voice vote. 

Uay 11, 19t3-Report tiled by Ur. Pticy on S. 1310 (S. Rept. 9S-127.) 

(For f irther lifUUtive history, lee H.R. 3959) 



3T-922 O - 84 - 



yGoot^le 



U^UttM Hbtorr ■< HJL 2»; 
tntlM Vt, vi^X Md X cd Dm DeMMk HaurfM Mid 
Inunatlanal RacomfT «d PlMiwUSt^lll'^ AcO 

(For le|UUUv« hl*tory of the coinponents (d H.R. 2957, tee dlieuMlnn af 
lesUlatlvB hlitory ol Expact-trnport Kwik Act AmenAncntl ol 1913, Intcnadonal 
Monetary Fund protdiloni and Intcm>tlan«l' LendUif Sivcrvttton Act, ind 
multllBtefal development bulla provliioni, whldi ve wt out ibvifii 



May 16, 19S3-Report on H.lt. 2997 filed In Koine (H. Kept. 91-171) 



(For lurther legislative hiitory, lee H.R. 39») 

H 

It tofonats anNndRNOt number II) 

November 17, 1913— Senate agreed by voice vote to oonleranoe report on 
H.R. 39}9, making Kfplemental appropriation* lor the 11k«1 y«*r^jndlng 
September 30, 191«, wt\ich contained provitlons related to Tltlei t, HI, IV 
and V ol H.It. Z9;7, and related to S. 6^ S. U9 and S. 1310, interted br 
means of the Senate amendment to the Houm amendment to the Senate 
amendment number 11 to H.IL 39)9. The Senate amendment to the Hotne 
amendment to ttie Senate amendment number 11 had prewUMily been afrecd 
to, a* modUled, by roll call vote ol 67 eye*, 30 nayt. 

November IS, 19t3— Houn agreed to K.Rei. 379, providing that «it Houae agree to 
ttie Senate amendment to the Houk amendment to the Senate amendment 
number 11 to H.R. 3939, i>y roll caU vote ol 22C yeai, ItCnays. 

November 30,.19t3-SigMd by the Pretident, Public Law 91-111. 



yGoot^le 



NMwnlMr it, 19» ' 
Thta VI J Expert bi^ort Bm* 
Sac (01. Smr thiM ■CxparMinport B«ik Act Amcndmcntt of m3.' 
hrt A - ExUn BMk Act A 



Sac £12. Umdatai Exim to bm fully competitive in »1I iti pregruTM] 
Exlm'i prlmvy pwpote li to expand export* thnnjgh 
csmpetltiva f inendng. The com of money ihill be ■ factor In 
the Eidm'i operation. 

Sec (13. Pravidet for ■ 12 memlier adviiory conunlttee to advise Exim on 

pmpans. Urnnbe n are to be broadly repreicntattve of production, 
cenunerce, finance, asrlculture, labor, lervlcei and State 



Sec (It. Reatructwei the termi of ttie preiidentlally appointed Exim dlrecton 
tiy praidding for ttancred termi conilitir<| of four yean except tor 
nm Aracter* QrM appointed on or after laniary Jl, 1915, whoaa 
term* ihaU be tor two year*. Not len thai one member shall be 
m ll I mil from the anall builnen community. ^ . 

Sac (13. Req<dre« the President of the United States to transnlt to the ' 
C«p«H a report no later than April IS of eadt year on the adequaqr 
of £](&«■* resources. The President can requestConpen to eliminate^ 
exceaslve Exim loan authority for that flscid year. 

Sec 61(. Speclflea that Exim thall provide flitanidni for the export of 
III (1i 1 1. Independently, or In conjunction with the export of 
manutactiaed, equipment, hardware or other cajdtal goods. Also addt 
to Export Trading Company Act items qualifying as security for 



Sac (17. Dlracts Exim to work to ensure that U.S. insurance companies are 
afforded an equal and non-dlicrl minatory opportunity to bid for 
Imurance in Exim tranuctioni. Directs Exim to report to the House 
and Senate Bankir^ Committees not later than May 13, IM* on this 



yGoot^le 



Sec (11. rill liliiiiiilii iliiiilliiii III [l Ii iif llliiiih lij 

reMnrtnc Mrtaln p«rcMta|n qt agpspta mall biMlnm leana, 
guanntoct and tnturvKe authority lor vaall bialnoi pwpoaea In wa 
amount not !«•* thm i parcent lor fbcal yaar 191*, ■ parccnt for 
- flical yaar 1913 wid 10 percent for tbcal jraar in6 and ttwaa l t a fl 
alto urjei the Fardpi Credt Imuranco Anadadan in prs*ida 100 
percent coverage lor any Ioh at export* under $100,000. 

Sec £19. Authorlzet ExLn general fadUtlei propamt lor Brazil and Uaxtce 
throu^ March 31| 19U. Provldef that Exlm not extend cradh 1e 
coontriei with balance of paymnt preblenwor anitt InnMnagemoit 
of It* International ddit Without authorliatlan bf lahr. 

Sec 630. Makei tadnlcal dianget. 



Sec <Z3. Require* Exlm to report on Its actient taken io nvport U J. 

Induftrie*, to create M^ ildlled Job* and to enhance KitaU budnen 

Part B — Matchins Credln 

Sec Ml Reqidrai that ttw Inquiry bt lectlon 1912 of the Exlm Act to ba 

completed within CO dayt at receipt of Inlormatlan. Section 1912 
allowi Cxim financing to mat<:}i fcreiB[^tinanclng by providing 
flnBnc±ig TO competing U^ leilen. 

Sec 6)3. Provide* appropriation authorizafion needed lor lection 19^ til ttie 



Sec 633. Make* technical d 

Part' C — Tied Aid Credit Export Subtldla* 

Sac Ml. Short tttlet Trade and Development Enhancement Act of 19B3.' 

.State* purpose To expand 
Importing nation*, netitra 
eicport (Tedlt nibildiei. 

negotiate toward clarifying lae of tied aid 



yGoot^le 



Sac CM- EnablWwi tied aid credit progruni for U J. exporti. Progruni to ba 
euricd «ut with Agenqr lor Int«rnatlon«l Development (AID). 
Authorlxea Utndlng of Exim and private financial Initltutiont 
- Ibwndng lor export of US. goods and services, if proof ol 

conOBUlonal foreign financing being provided to foreign competitor. 

SecMS.' EstabUthe«tled4ldprogram forU^.eirsrts within Agencylor 

Intanatlonal Development (AID). Authorizes AID to establish a fund 
to kn^Btnent program. Authorizes blending of Exlm AID pants and 
privatB Imtitudon concessional financing lor export ot U,S. goods and 
services if proof of foreign financing twing provided to a foreign 
competitor. Stipulates that AID funds for program to be consbtent 
with criteria of Economic Support Funds and kned for exports 
contributing to development ^jectives of importing country. 



Sec 6*7. Provides definitions of tied aid credit, govemment-mixed Credits, 

public-private coftnancing, blending of financings, paraiiei financing. 



Title VII - Miscellaneous Provision 



Sec 703. Extend* the Defense Production Act until March 30, 19>«. ' 
Title VQI — International Irioneta^ Fund 



Sec 101. Provides intTease in the U.S. IMF quota of m billion. Requires 

Secretary ot Treasury to consult with Congress 30 days before and at 
oti>er intervals in consideration of any future quota increase. 
Provides Increase In General Arrangements to Borrow {CAB) ot $2-* 
bll&on. Require! Secretary of Treasury to certify whether resources 
'are needed to forestall or cope with impairment of International 
monetary system and that IMF has luliy ej^iored other funding 
before activating GAB. Also Instructs U J. Executive Director to 
the IMF to werit for collection of information on the extension ol 
credit by banks and dissemination of this information to the public. 



yGoot^le 



UDRi). 

See. to* ' Requtrei the E>resldent to Instruct U J. Eitecutlve Director to 

actively Oppose (ny IMF credit drawing by any country practicing 
apartheid, or Secr«tvy ol Treasury to llkewije Instruct the Director 
to actively oppose IMF drawings by any comimnist 
dlctatoritUp, unless ttie Secretary at Treasury notifies Congress at 
Jeast 21 days before vote on drawing, and certifies and document* 
tollowlnp ^ 

[a) that «ith regard to any country practicing apartheid, such dnwingi 
(I) reduces severe constraints on labor and capital mobility by 
Increasing worker access to educstloni reduces artiliciai constralnn 
on worker mobility, and substantially reduoa* racial restrictions on 
geographical labor mobilltyi (2) reduces other labor and capital s^iply 
rldigidties; (3) benefits economicaily tiia majority ol tint country^ 
people; (4} that Hie country suffers from balance ot payments 
problems that can't be met In private capital markets. 

(b) that regarding any caminunlst dlctstonhlps such drawing co f rects the 
balance of payment^ problems, reduces Capital and labor rigidities, 
and is in the best interests of the majority in that country. 

In addition. If requested, the Secretary ot the Treasury shall appear 
before Oie House and S^ute Elanking Committees and the Senate 
Foreign Relations Committee at least 2i days before the vote to so 
certify and document that the aforementioned condition* have been 
met. Failure to meet the request would require the U.S. Executive 
director to vote against sudi drawing. 



le elimination of 



Sec. sot. Requires the U.S. Executive [Mrector to work tor dianges in Fund, 
policy which would convert shoA^erm bank debt made at high 
Interest into long-term debt at lower interest rates. Except under " 
certain circumstances, the Executive Director will oppose any 
program for any country where Its annual debt service Is greater than 
13%. of its export earnings. 

Sec. S07. Instructs O 

Sec. IDI. Directs 0)e U.S. Executive Director, as a general piriicy, to avoid 
.government subsidization of the production and export ol 
Citemational commodities without regard to Ae market tor such 
commotfities. 

Sec. K». Instructs U J. Executive Director to propose polides lor international 
cooperation, within IMF consultations, on the trend and volume of 
external indebtedness of borrowers in the member country. 



yGoot^le 



Sac 112. tnttrucn the U.S. Exaonlve Director to work lor IMP poUdei whldt 
reduce raitrictiara on International tr&oe, promote Improved 
•cenomlc reUtion* and eUmlnate tadair trade practices. US. 
Executive Director to work for IMF agreementi with countrlei 
a e et dm aniitance that would end predatory export ubiidiei, 
unre i iMbl e Import reitrictlont, and other unfair practicei. 

SK.IO. 



review ol nccen In reducing or eliminating Import restrictions. 



(e) documentation and progress made In carrying out Sec. t06. 



U.S. membership In the Bank tor International Settlements,^ 

propoaalt to lmprev« the ttoatinjt^diange rate system, 

recommendations on what the IMF can do to avdd the manipulation 
M eadiange r«te«, 

growth in countries 

13) teaaibUity ol Fund Issuing lecvrttiei in private capital markets, 

(fi> featlbUity ol selling Fund's gold reserves, " ' 

(7) tMsifalllty of establishing temporary iun>lement>l financing 
fadlltiea, 

tt) leasibillty of establishing ■ Cold lending Facility, 

Fund In the 



yGoot^le 



(11) actloni taken to carry out the bwic human ne«d4 proWslons, 

(t2) progr«M on equ&Uzing IMF Inlemt ratei with market ntet, 

(13) impact of quoli extenilon on world tul prioei, 

(It) assessment of a systematic restructuring or s tret c h-out of developlni 
countries debt, 

list the rale that global recovery will pUy in wiving the debt crisis, 

(16) adeqiacy ol IMF resources, 

(17) role of IMF in providing credit to least developed countriexi 



Title IX — International I ending Siiperv!iion 

Sec 901, Short title: Intematlanal Lending Supervision Act of I9I3.' 

Sec. 901. Declares the policy of Congreu li to assure that the InlematiofWl 
economic system should not be threatened by imprudent lending or 
Inadequate supervision. 

Sec 903. Defines the terms 'appropriate Federal'Wiking agency,' and 
"banking Insiitinlon' tor purpose* ol this title. 

Sec 9M. Provide* that the appropriate Federal banking agencies ihaOtake 
foreign country exposure and trwofer risk into Account when 
considering the adequacy ol the^pital of banlcing Institutions. 

Sec 903. Provides that the sfipropriate Federal banldng agencies reqidre ■ 

banking initituticns to establish special reserves lor international 
iMns whenever (I) there is a protracted f«Ui>e ol foreign borrowers 
to meet lermi ol IMF lending agreements on restructuring of loans or 
0) no definite prospects exist for the orderly restoration of debt 
service. Requires reserves be charged against income and not part of 
capital. Requires agencies to analyze rescheduling to enture 
adequate capita] and reserves. 

Sec 906. ProlUblts banking institutions from charging any fee lor loan 
restructuring exceeding administrative costs, unless the fee Is 
amortlxed over the life of the loan. Requires the banking agendea to 
regulate lee accounting. 

Sec 907, Directs the appropriate Federal banking agendo* to retpjlre banking 
institutions to disclose thdr foreign country debt expo«re at least 
four time* a year. Requires agende* to require Inlormation to be 
publldy ^*dosed. 



yGoot^le 



• ■(nra9i1*te 
EnadBqutaa 



lo malnttln Maqtata npltal lev^. Fidlure to maintain ludi 
Isreti lauf be deemed by the appropriate agency to coutitute an 
until* aiM lamiund practice within the meaning of tectlon 1 of the 



Sac 909. Requires banking Institutions to prepare an economic f eaalbiiity 



and to evmiuate any lorelgn nibildiei and their Impact on world 



Authorise* tha appropriate Federal agendes to Interpret and 
define term* uud in thlt title and to prescribe rules and 
reguIatianB as may be necenary. PnMdes dvll penalties up to 
$1,000 per day Icr violation* of title. 

Clarilia CAO authority to audit the International regulatory, 
examination, and Hvervisory actions of the approfx-late Federal - 
bonking agcndes. It also Incorporates the sateguardi widdi are 
now provided for in existing CAO banldng agency audit authority. 

Gives FDIC equal representatlcn with the Fed and OCC on the 
Comndttee ol the Croup of Ten Countries on Banking Regulations 
(Basia Conuntttqe). 

Require* the Secretary of the Treasury or the appropriate Federal 
banldng agency, to report to Congress, not later than six months 
altar enactment, regarding diangci to ImprDve the 
International lemfing supervision of banking insiltutiara, 
■trenftheidng ca^t^ bases of banks In international lending and on 
the unform Implementation ol this title. 



Tide X — Multilateral Development Banks 



Authorizes U.S. subscription to the Inter'Amerlcan Development 
Bairic of $1.2 bllUon. Of this amount, *.5% Is paid In and the 
remainder callable capital. Authorizes a S3J0 miUion U J. 
contribution is the IDVt Fund tor Spedal Operations. 

Authorize* U.S. subscription to the Asian Development Bank (ADB) 
«( $13 bUlton. 3% to be paid in and the remainder cali^k c^iitai. 
Authorliet a $320 mllUon U.S. contrlbutkm to the ADS'* 
Development Fund. Expresses sense ol Congress that Taiwan shall 
remain a lull member of the ADB. 

o African 



yGoot^le 



Sec lOM. Clirlllei Intant at Section 701 «1 International Flnandal 

Imtltutiani Act by deleting the word ■coniittent' from the phrua 
"contbtent pattern ol grciis violation at huntan rlShti.* Abo 
require* more timely transmltal of Tre«*uryi quvtcrly reporti an 
human right*. 

Sec. 100). Provldet lor a study on ttaw the MulUlaleral Development Banki 
(MDB*) can help to more effectively diannel private direct 
investment to developing countrlei. 

Sec. lOW. ProWdei that personnel decisions at the MDBS be made In 
coniultatlon with the House Banldng and the Senate Pordgn 
Relations Committees. 

Title XI - IMF AppropriaUon 

Sec. 1101. Provides appropriation for U.S. IMP quota increase of the dollar 

eiiuivaient of i.J billion SDKs. Provides appropriation for increase 
In General Arrangements to Borrow of the dollar equivalent Of an 
additional 2.23 billion SDRs. 

Sec. 1102 Congressional findings that include that a Solution must be found to 
current i.ionelary crisis and that IMF holds gold that is not fully 
utilized. Expresses tense of ihe Senate thai Secretary of Treasury 
should call for a conference on the monetary system and thai IMF 
should malie fuller use of its assets, including gold. 



yGoot^le 



STATEMENT BY CHAIRMAN ST GERMAIN 

[Congreseional Record— House— November 18, 1983] 

Providing Procedures During Consideration of H.R. 3959, 
Supplemental Appropriations, 19S4 

Mr. Long of Louisiana. Mr. Speaker, by direction of the Commit- 
tee on Rules, I call up House Resolution 379 and ask for its imme- 
diate consideration. 

The Clerk read the resolution, as follows: 

H. Res. 379 

Raoloed, That during the Kinsideration of remaining amendments in disagree- 
ment to the bill (H.R. ^59) making supplemental appropriations for the fiscal year 
Hiding September 30, 1984, and for other purposes, the Senate amendment to the 
House amendment to Senate amendment number 11 shall be cmsidered to have 
been read and considered to have been agreed to. 

The Speaker pro tempore. The gentleman from Louisiana (Mr. 
Long) is rect^nized for 1 hour. 

Mr. Long of Louisiana. Mr. Speaker, I yield the customary 30 
minutes, for purposes of debate only, to the gentleman from Ten- 
nessee (Mr. Quillen). Pending that, I yield myself such time as I 
may consume. 

(Mr. Long of Louisiana asked and was given permission to revise 
and extend his remarks.) 

Mr. Long of Louisiana. Mr. Speaker, on Wednesday the House 
adopted the conference report on H.R. 3959, the supplemental ap- 
propriations bill for fiscal year 1984 by a vote of 372 to 51. There 
were 34 amendments in technical disagreement which were all dis- 
posed of as agreed upon by the House and Senate conferees. Fifteen 
of those amendments were House amendments to Senate amend- 
ments to House amendments and, therefore, required subsequent 
action by the Senate. 

Yesterday, the Senate further amended the amendment num- 
bered 11, dealing with veterans job training programs and added to 
it the so-called Garn amendment which contains the following six 
items: 

The housing authorization; 

The IMF authorization; 

The IMF appropriation; 

The authorizations for the Export-Import Bank; 

The authorization for the multilateral development banks; and 

The extension of the Defense Production Act. 

The rule provides that during the consideration of the remaining 

amendments in disagreement, the Senate amendment to the House 

amendment to Senate amendment number 11 shall be considered 

to have been read and shall be considered to have been agreed to. 

(229) 



yGoot^le 



230 

Mr. Speaker, in plain English let me explain to my coUefigues 
what this rule does. It is somewhat unusual, and a procedure which 
the Rules Committee employs only sparingly. This procedure is not 
unprecedented, however, and has been used to expedite the consid- 
eration of very important legislative matters, such as the nuclear 
waste legislation of the last Congress. 

This rule is what we term a "self-executing" rule. Basically, 
House Resolution 379 provides that, upon adoption of the rule, the 
House will be deemed to have agreed to the Senate amendment. 
All of the debate will occur, therefore, on the rule, and the vote on 
the rule is, in essence, a vote on the substance of the legislation. . 

As my colleagues know, a special order, or rule, is considered in 
the House under the hour rule. The floor manager controls the full 
hour and, by custom, yields 30 minutes of that time to the minority 
floor manager. The rule is not amendable. 

Let me also explain, Mr Speaker, that should the previous ques- 
tion be defeated, then it would not be possible to amend the text of 
the substantive legislation. I emphasize again, therefore, that the 
vote on the rule is in effect the vote on the legislation. 

Mr. Speaker, House Resolution 379 allows the House to complete 
action, in an expedited manner, on several vitally important mat- 
ters that have been unresolved for many months: extension of the 
Federal housing program, and authorization of the IMF, the Exim 
Bank, and the multilateral development banks. I am pleased that 
the principal parties in dispute have reached agreement, and that 
the matters have been resolved to their satisfaction. I urge my col- 
leagues to approve the rule, thus approving the amendment in dis- 
agreement. 

D 1400 

Mr. QuiLLEN. Mr. Speaker, I yield myself such time as I may con- 
sume. 

(Mr. Quillen asked and was given permission to revise and 
extend his remarks.) 

Mr. Quillen. Mr. Speaker, the gentlemem from Louisieuia is ab- 
solutely correct. When this rule is adopted, the supplemental ap- 
propriation amendment in diseigreement is adopted, embracing sev- 
eral measures that have already been passed by the House, a very 
important housing bill, the IMF authorization and other compo- 
nents. 

I say that it is mandatory that we get this measure behind us at 
the 11th hour so that we can adjourn. However we might feel 
about IMF, however we might feel about housing, however we 
m^ht feel about the Export-Import Bank, the Inter-American De- 
velopment Bank, the Asian Development Bank, and the African 
Development Fund, lay those differences aside, if you have any, 
and vote for the package because it is mandatory tluit this l^isla- 
tion pass before adjournment. 

I supported IMF when it was on the floor for consideration the 
first time. I talked to the Secretary of the Treasury yesterday and 
he assured me that the measure had been amended to prevent the 
bailout of big banks. I am gratified at that because the criticism I 
had on my vote was that we were bailing out the big banks. 



yGoot^le 



I think that for the economic progress of this Nation the interna- 
tional loan situation is critical. We do not weuit to go back into fur- 
ther recession when we are on the road now to a speedy and sure 
recovery. 

Mr. Speaker, I rise in support of the rule and I urge my col- 
leagues to vote for it so that we can get on with the business of the 
House, the debt ceiling which also must be passed before we ad- 
journ, and other important matters. 

Mr. Long of Louisiana. Mr. Speaker, I yield 2 minutes to the 
gentleman from California (Mr. Patterson). 

Mr. Patterson. I thank the chairman for yielding me this time. 

Mr. Speaker, we have a very complex bill to vote on today. One 
vote will adopt both the rule and the bill. However, we have had 
time to study and vote on each of these matters, the Export-Import 
Bank bill, the multilateral development banks, the International 
Monetary Fund and the housing bill. We had these bills before this 
body for a number of days in previous months. 

We adopted the bills and they went to the Senate. The Senate 
has taken our legislation, somewhat modified it and reduced spend- 
ing amounts, and attached it to the supplemental appropriations 
Irill before us today. Today is our opportunity to pass that legisla- 
tion. It is a very important bill. The President indicated in his 
Epeech at the Williamsbui^ summit that this is the linchpin of eco- 
nomic recoveiy not only for the United States but for the rest of 
the world. 

I think it is very important that we cast "aye" votes for it and I 
call upon my colleagues on the other side of the aisle, the side of 
the aisle of the President's own party, to support your President, 
because without your bipartisan support, without your votes, this 
bill cannot be passed today, and we must pass it; if not today, we 
must pass it prior to September 30 or you can rest assured the 
President of the United States will call this House, the Congress, 
back in special session. 

Therefore, Mr. Speaker, I rise in strong support of the rule on 
today's legislation covering housing, the Export-Import Bank, the 
IMF and the multilateral development banks. As chairman of the 
International FiuEUice Subcommittee, I want to stress the impor- 
tance of this legislation to the economic health of the world at 
large and, especially to the United States. Passage of this legisla- 
tion is veiy much in our own self-interest. 

I want to iiTst thank the chairman of the Appropriations Com- 
mittee, Mr. Whitten, for the help he has provided in enabling this 
legislation to be considered by the House today. I also want to 
praise the chairman of the Banking Committee, Mr. St Germain, 
for the outstanding job he has done during the many months he 
has shepherd this bill though committee, through House passage, 
and through intricate n^otiations with the Senate. 

During this process, he encountered more legislative pitfalls than 
anyone deserves and yet he came though it all with a bill that will 
provide desperately needed resources enabling the IMF to continue 
its indispensable role in the world economy and thereby, as the 
President himself has repeatedly emphasized in correspondence 
with me and with other Members, safeguard our own national se- 



yGoot^le 



curity. At the Williamsburg Economic Summit, the President 
called the IMF "the linchpin of world economic recovery." 

This measure also reallirmB the Federal Government's committ- 
ment to safe and affordable housing for all Americans. A bill that 
renews the charter of the Export-Import Bank, thus enabling a 
continued competitive position for U.S. exports. A bill strongly sup- 
ported by President Reagan, that will also authorize continued U.S. 
participation in the Asian Development Bank, the Inter-American 
Development Bank, and the African Development Fund. These in- 
stitutions fulfill a critical role in the development of the economies 
of our most important trading partners, the developing countries. 
Finally, this legislation takes a realistic approach toward the 
future lending practices of the commercial banks without being so 
restrictive that overseas financing becomes inadequate to sustain 
U.S. exports. 

I believe President Reagan was absolutely accurate in stating 
that the IMF is the key to avoiding worldwide economic chaos and 
disruption of the flow of U.S. exports abroad. I am convinced, by 
what I am told by our President, our Secretary of State, our Secre- 
tary of Treasury, the lengthy and thorough-going hearings which 
our Committee on Banking has held over the past two years on the 
President's IMF request, and by what I know about the needs of 
the employers and employees who live in my own district, that this 
bill must pass. The President has stated that failure to approve 
this legislation will substantially increase the chances for an eco- 
nomic calamity that will affect this country for generations to 
come. The costs of such a calamity would be mr more serious than 
simply endemgerment of the U.S. economic recovery. 

Passage of this legislation is crucial to the 5 million Americans 
who are employed as a direct result of the exports we sell overseas. 
It is not difficult to envision the harsh economic consequences for 
the United States if there was a serious contraction in world trade. 
I know for example, that in my home State of California, five of 
the six largest importers of California products were developing 
countries, some of whom are currently receiving IMF assistance 
and policy advice. Those five countries, including Mexico, account- 
ed for $8.4 billion in purchases from California— ^almost 30 percent 
of the $28.6 billion in exports from California in 1982. It is estimat- 
ed that 720,000 jobs resulted from these exports in California. So, 
for me, the IMr issue is a jobs issue and an issue of jobs for the 
people of my own home State and district. 

Yesterday, the Senate passed its own language requiring the U.S. 
Executive Director at the IMF to oppose loans to all countries 
which are Communist dictatorships or which practice apartheid. 
The Gramm amendment, which passed the House, required the 
United States to oppose all loans to countries characterized as com- 
munist dictatorships. As we all know, the President of the United 
States himself opposed this language and it was eliminated from 
the legislation by the Senate at the express request of President 
Reeigan. The legislation before us, however, contains a newly draft- 
ed provision which gives the President the flexibility he must have 
if he is to conduct U.S. foreign policy. The Senate's language is 
stronger than the House language and it is, by far, more worltable. 
It requires opposition to all loans to Communist countries except 



yGoot^le 



where the administration certifies that numerous tough conditions 
have been met, including the requirement that our national securi- 
ty is best served. 

The Secretary of the Treasury must personally testify to us on 
these conditions and document that they have been fully met. I 
wholeheartedly support the Senate's action in rejecting the Gramm 
amendment, because it provides the President flexibility to work in 
the best interests of our country without allowing U.S. taxpayers' 
money to be sent to Communist debtors, without a strong showing 
by the President as to why this is in the national interest. 

The apartheid provision now contains similar stringent condi- 
tions, generally requiring U.S. opposition to such loans, but allow- 
ing the possibility that the administration may be able to make a 
case that a long list of conditions have all been met. Thank you, 
Mr. Speaker. 

Mr. Mitchell. Mr. Speaker, will the gentleman yield? 

Mr. Patterson. I would be delighted to yield to the gentleman 
from Maryland. 

Mr. Mitchell. I thank the gentleman for yielding. 

Mr. Speaker, I asked the gentleman to yield for the purpose of 
raising at least three questions, one of which might better be di- 
rected to someone from the Committee on Rules. 

I have only been here 14 years and this is the first time I have 
ever been in a procedure where a vote for the rule is a vote for the 
bia. 

Mr. QuiLLEN. Mr. Speaker, I yield 5 minutes to the gentleman 
from Ohio (Mr. Wylie). 

(Mr. Wylie asked and was given permission to revise and extend 
his remarks.) 

Mr. Wyue. I thank the gentleman for yielding this time to me. 

Mr. Speaker, I urge adoption of the rule and an affirmative vote 
on this l^islation which, in addition to providing supplemental &p- 
propriations, provides for the necessary funding for the domestic 
bousing pn^ams, the Export-Import Bank, the multilateral devel- 
opment banks, and the International Monetary Fund. 

It has been a most difficult undertaking to bring this bill to a 
vote on the housing and IMF authorizations, but I would submit 
that there were 20 hours of floor debate on the IMF quota increase 
alone, and the housing issues have been debated extensively. 

Speaking to the increase in the funding for the IMF, in his 
speech at last month's annual meeting of Finance Ministers, Presi- 
dent Reagan reaffirmed his unbreakable commitment to increase 
funding for the IMF. In his speech he noted: 

The legislation is not only crucial to the recovery of America's trading partners 
abroad and to the stability of the entire international financial system, it is also 
III n wiiiij to a sustained recovery in the United States. 

I join in that assessment, Mr. Speaker. 

Let me quote from the President again about what might happen 
if the Congress fails to enact this legislation: 

ir the Congress does not approve uur participation, the incvitiible consequences 
will be a withdrawal or other industrial i/«d countrit^s I'rum duint; their share. At the 
end or this rood could be a major disruptiun or the world tradinf; and finuncial 
lystem, nn economic niuhtmare that could plafjut- generations lo conic. 



yGoot^le 



D 1410 

The President has been in discussions, may I submit, with other 
world leaders on this subject, and I am sure he knows whereof he 
speaks. He h£is just sent me another letter which says, in part: 

Failure U> pass this legislation would undermine our efforts to ensure to a sound 
world economy necesBary for the cNjntinued prosperity of all nations. It is essentia] 
that our country now follow through to strengthen this vital institution. 

The IMF has made a contribution to the United States by rein- 
forcing the trend toward an open international system where free 
markets and free enterprise can thrive. 

Mr. Speaker, I have called it a jobs bill. I think it is very impor- 
tant for our own economy and for jobs in our country, and I sub- 
mitted some statistics during the debate as to how it impacts on 
our own jobs market. 

Adoption of the rule would also authorize the housing programs 
administered by HUD and the Farmers Home Administration. This 
is good housing authorizing legislation, and 1 am happy to say that 
these authorizations are not budget busters. The total budget au- 
thority falls within the budget resolution and is in line with previ- 
ously appropriated amounts. 

It is fair to say that with the help of Mr. Stockman, Secretary 
Pierce, Chairman St Germain, and Senator Garn, this bill makes 
many improvements in existing housing law. 

In most instances this is the first time in 3 years there has been 
comprehensive legislation on housing programs. That in and of 
itself could justify consideration of this legislation, for as we all 
know, Government programs work best when they are modified to 
meet changing circumstances. 

Mr. Mitchell. Mr. Speaker, will the gentleman yield briefly for 
a question on housing? 

Mr. Wylie. 1 will yield to the gentleman when 1 finish. 

Mr. Speaker, in those situations where programs have outlived 
their usefulness, the programs are terminated as we did in the case 
of the riot reinsurance and the section 8 new construction. 

In addition, this legislation includes several innovative changes 
such £is the negotiated FHA rate provision, the so-called Bartlett 
amendment, and the demonstration voucher program. Both of 
these are administration initiatives, and, I believe, will be benefi- 
cial to home buyers in the first instance and helpful to low-income 
renters in the second. All in all, I feet the housing and community 
development titles, standing on their own merit, justify speedy ap- 
proval of the requested rule and enactment of this l^slation. 

The administration supports the IMF and housing provisions. 

Mr. Chairman, the Congress needs to act expeditiously to author- 
ize the IMF quota increeise so the fund can continue to safeguard 
our economic interests. We respectfully ask for £m affirmative vote 
on the rule. 

Mr. Speaker, I rise in strong support of the Senate amendment, 
the Domestic Housing and International Recovery and Financial 
Stability Act, to H.R. 3959, providing supplemental appropriations 
for fiscal year 1984. As you know, the House approved the omnibus 
IMF authorization last August and a housing authorization last 
July. Together with the appropriations for the IMF, these are the 



yGoot^le 



m^ior component parts of the Senate amendment. I have been 
working closely with the White House, the gentleman from Rhode 
bland. Chairman St Germain, Senate Banking Committee chair- 
man, Gam, and Senator Proxmire, and I am fully confident that 
the legislation before the House today represents a carefully bal- 
anced package which truly is in our Nation's best interests. 

After many hours of hearings and debate, it is clear to me that 
this l^islation is important for our international responsibilities as 
the leading power in the free world, for our own economic recov- 
ery, for private sector jobs, and for legitimate housing needs in this 
country. Like it or not, we live in an interdependent world where 
economic growth and recovery at home are dependent upon eco- 
nomic growth and recovery throughout the world. 

The recent full-page ad in the Washington Post sponsored by the 
Ad Hoc Coalition of IMF supporters underscores my point. Groups 
as diverse as the National Association of Wheat Growers, Levi 
Strauss & Co., Johnson & Johnson, the Goodyear Tire & Rubber 
Co., the Colgate-Palmolive Co., the American Association of Export- 
ers and Importers, the American Retail Federation, and many, 
many others support this legislation because it is in our own do- 
mestic economic self-interest. 

Quite frankly, Mr. Speaker, flnancial stability throughout the 
world, aided by the valuable work of the IMF, means trade oppor- 
tunities overseas and jobs here at home. In my home State of Ohio, 
nearly 8 percent of all jobs have been identifled as being directly 
related to exports. 

Let me respectfully remind my collesigues that President Reeigan 
has made the IMP legislation a key element in his legislation strat- 
egy. At last month's einnual meeting of the IMF, President Ree^an 
reaffirmed his "unbreakable commitment" to increase funding for 
the IMF. He told us bluntly: 

I urge the Cangreas to be mindrul ol its responsibility and to meet the pledge of 
our govern ment. 

He told US that the stakes are great. Quoting again from the 
President's speech, he said: 

This legialation is not only crucial to the recovery of America's trading partners 
■broad and to the stability of the entire international financial system it is also nec- 
avuy to a sustained recovery in the United States. 

Let me quote the President one \ast time about what might 
happen if Omgress fails to enact the IMF authorization and appro- 
priation this session: 

If the Congress does not approve our participation, the inevitable consequence 
VDuld be a withdrawal by other industrialized countries Trom doing their share. At 
the end of this road could be a meOor disruption of the entire world trading and 
financial syatems — an economic nightmare that could plaKUL' generations to come. 
No one can afford to make light ot the responsibility we all share. 

I urge all of my colleagues to rise to our responsibilities, respon- 
sibilities in my opinion which are clearly in our national interest, 
and support the Senate amendment. In this way, we will fulfill the 
President's unbreakable commitment to the IMF and to financial 
stability around the world. 

Turning now to other key component parts of this carefully bal- 
'"te, let me point out the highlights of this l^islation. 



37-922 O - 84 - 16 



yGoot^le 



This legislation extends the charter of the U.S. Export-Import 
Bank for 3 years. Among other things, we improve Eximbank's ca- 
pacity to support and finance U.S. exports, which as we all know 
are a growing percentage of our GNP and thus, private sector jobs 
in this country. Changes we make include: 

We provide for greater attention to the needs of smatt business 
as well as minimum financing levels for the aggregate of small 
business loans, guarantee and insurance authority of 6 percent in 
flscal year 1984, 8 percent in fiscal year 1985 and 10 percent in 
fiscal year 1986. 

We require that at least one member of the Board of Directors 
represent the interests of small business. 

Eximbank will now provide for medium-term financing up to 85 
percent of the cost of the exports, and Eximbank also will set up a 
program to help advise small business on this financing. 

We specify that Eximbank can provide financing to all export 
trading companies dealing in services. 

We insure that U.S. insurance companies will have an equal op- 
portunity to bid for insurance contracts on Eximbank's treinsfic- 
tions. 

We provide for a 12-member advisory committee with at least 3 
members representing small business. 

Many new watehdog restrictions will be added by title VIII of 
this l^islation. For example these restrictions include: 

For the first time, we provide for the Secretary of the Treasury 
to certify that the general arrangements to borrow resources are 
needed to forestall an impairment of the international monetory 
system, before the funds can be used. 

I support the inclusion of this provision in the bill in order to 
insure that these resources are used primarily in those cases that 
present serious difficulties for the international monetory system. 
The Secretory of the Treasury is authorized to allow U.S. resources 
to be activated for those cases where use of these resources is nec- 
essary to forestell a serious threat to the international financial 
system and where the Fund has fully explored alternative mesins 
of financing. These stondards are, in their essence, similar to those 
contoined in the eigreement on the general arrangements to 
borrow. As a participant in the general arrangement to borrow, the 
United Stotes is committed to this international obligation. We 
want to note our desire to maintoin our prior international com- 
mitments as well as our desire to allow the Secretory of the Treas- 
ury to be able to respond quickly when such a need arises. 

We instruct the U.S. Director to oppose the use of Fund re- 
sources to repay loans imprudently made by private banks. 

We instruct the U.S. Executive Director to work to bring the in- 
terest rates on Fund drawings into line with market interest rates. 

We direct the U.S. Executive Director to avoid the sul»idy of the 
production of international commodities without toking into ac- 
count the market for these commodities. 

We instruct the U.S. Executive Director to work for Fund poli- 
cies which reduce restrictions on international trade, promote im- 
proved economic relations, and eliminate unfair trade practices. 

We require prior consultation with Congress before the next cre- 
ation of special drawing rights. I welcome this provision, since I be- 



yGoot^le 



237 

lieve it is important that the executive branch consult with Con- 
greBB on this important matter. The requirement for 90-day consul- 
tation prior to any vote, however, could pose some dimculties. 
Since international events can unfold rapidly, we must be sensitive 
to the possible need to respond quickly and eiTectively to such 
events and to accompanying international negotiations. The d(klay 
consultation provision includes specific explanations and standards 
the Secretary of the Treasury must meet. Since such an extended 
period may, in certain cases, preclude the Secretair of the Treas- 
ury from fully meeting these consultation standards, we note our 
opectation that the 90-day consultation requirement be realistical- 
ly applied and met. We will need to be flexible both with respect to 
UK timing of such consultations and the substance on a case-by- 
case basis. 

We direct the Secretary of the Treasury to make all kinds of nec- 
essary reports including: 

Firat, proposals to improve the floating exchange rate system; 

Second, the ability of Fund to promote real economic growth in 
countries undergoing Fund stabilization programs; 

Third, the feasibility of Fund issuing securities in private capital 
markets; 

Fourth, the feasibility of selling Fund's gold reserves; and 

Fifth, the feasibility of establishing temporary supplemental fi- 
oancine facilities. 

Mr. Speaker, section 804 provides instructions to the U.S. Execu- 
tive Director regarding IMF loans to Communist dictatorships and 
countries pursuing a poller^ of apartheid. I know of no Member in 
the House who favors either apartheid or communism. As Mem- 
bers are aware, however, this is a highly controversial issue. The 
proposed provision is the product of extended discussion. I believe 
that it represents a balanced and constructive approach which re- 
sponds to the concerns that have been raised while preserving the 
apolitical character of the IMF. I want to themk all those involved 
for tiieir cooperation in this effort. 

Under the terms of this amendment, the United States would be 
required to actively oppose IMF loans to Communist dictatorships 
and countries practicing apartheid unless the Secretary of the 
Treasury certifies and documents at least 21 days in advance of an 
IMF vote that certain criteria had been met. 

The 21-day requirement is based on current IMF procedures 
which normally provide that the documentation relating to a re- 
quest for use of IMF resources be presented to the Executive Board 
at least 4 weeks prior to a decision. However, it is often not possi- 
ble to meet this schedule and decisions on loans can be made 
within a shorter period. Consequently, there may be situations in 
which it would not be possible for a Secretary of the Treasury to 
satisfy the 21-day requirement. 

It is not the intention of the sponsors to have a provision which 
cannot reasonably be expected to be met. Clearly, the 21-day re- 
quimnent will have to be interpreted realistically to take account 
of the IMF loan n^otiations; the other factors that may affect the 
ability ol the Secretary of the Treasury to provide the necessary 
certifustion and to testify before the appropriate committees. The 
21-d^r requirement represents an expectation, but adherence to 



yGoot^le 



238 

that goal would take into account reasonable variations due to the 
circumstances at the time. 

Under title IX private banks will behave in the future with 
closer supervision and tighter regulation. For example, 

We direct the appropriate Federsi] banking agency to evaluate a 
foreign country's exposure in evaluating capital adequacy stand- 
ards. 

For the first time, we instruct each appropriate Federzil banking 
agency to require banks to maintain adequate capital levels. 

We direct the Federal banking agencies to require banks to es- , 
tablish reserves whenever the agency determines that the public or 
private borrowers are unable to make their plan payments. 

We require that no banking institution snail charge any fee for 
loan restructuring exceeding its administrative cost, unless this fee 
is amortized over the life of the loan. 

We provide for evaluation of foreign loans in excess of $20 mil- 
lion in mining or metal-msiking operations with regard to their 
in^ct on world markets and the degree of subsidy involved. 

We provide for audit authority of international bank supervision 
by the GAO. 

We direct the Secretary of the Treasury to report on changes 
needed to improve the foreign lending operations of U.S. banks. 

Mr. Speaker, we aiso include the authorization for the multilat- 
eral development banks negotiated by this administration. Further- 
more, we provide for a study on how the Multilateral Development 
Bank can help to more efTectively channel private direct invest- 
ment to developing countries. 

Let me now turn to the housing component of this compromise 
legislation. 

There have been comments to the effect that the housing legisla- 
tion is a hostage for the IMF bill and that housing would not have 
been considered had it not been so linked. The implication is that 
the housing portion is not worthy of being considered in its own 
right. 

I do not believe that is correct. 

The housing and community development provisions are, on the 
whole, good provisions. 1 am not saying 1 support everything that is 
in the bill and there are program changes — notably secondary 
market amendments — that I support which are not included. As I 
said, however, on the whole the compromise is a good one. I can 
assure my colleagues that, if we were considering only the housing 
portion, and, if it were a question of an up or down vote, I would 
urge a "yea" vote. 

I would do so for these reasons. 

It is a fiscally responsible piece of legislation. Much more so than 
H.R. 1 was, which I opposed when it was reported from the ink- 
ing Committee. This compromise is $8 bUlion less than H.R. 1, as 
reported. The total new budget authority of $15,627 billion is well 
within the limits of our congressionally adopted budget resolution. 
It mirrors almost exactly the Ending contained in the appropria- 
tion bills. It is definitely not a budget buster. 

It contains many provisions that are necessair if the prt^ama 
that are administered by HUD and the Farmer s Home Adminis- 
tration are to function efficiently and equitably. As an example of 



yGoot^le 



that, let me cite the 3-year authorization for the community devel- 
opment block grant program. This will give the mayors of our 
dtiea an indication aa to how much Federal assistance they can 
expect in the years ahead so they can plan their budgets according- 
ly. Another example would be Uie statutorily established 9Vi per- 
cent interest rate for our 202 elderly projects. Without this, it is 
flttimated that 80 percent of the projects presently in the pipeline 
would fall out. 

It contains many innovative provisions. The negotiated FHA rate 
is an example of tjiis. Originally added by our colleague from Texas 
tMr. Bartlett) this should have a beneficial effect on overall mort^ 
gage coets. Other examples of innovative proposals include the 
d^onstration voucher program and FHA msurance for alterna- 
tive mortgage instruments. 

It contains many cost cutting features for both the Grovemment 
and private enterprise. Section 202 projects of over $2 million must 
be subject to competitive bidding and all 202 projects are required 
to be modestly designed. The contract term for the existing housing 
program that will be part of the voucher demonstration has been 
cut to 5 years, reducing the budget authority coat from an estimat- 
ed $68,000 per unit to $16,000 per unit. Builders would only have to 
meet one acceptable building code. Costly and outdated programs 
are repealed. 

Mr. Speaker, there are many, many more positive features to 
this legislation, and I will cover some of them in more detail in my 
prepared remarks, but I believe I have made my point. The housing 
portion of this compromise is no drawback — it is a plus. It should 
tw supported. 

In cloeing, Mr. Speaker, this is a solid packa^ which fulfills our 
Nation's domestic housing needs and our international financial re- 
Bponsibilitiee. This legislation is strongly supported by the Reagan 
administration. To my Republican colleagues, I encourage you to 
join me and vote in favor of this package. As our former Republi- 
can leader and former President, Jerry Ford, stated recently: 



Mr. Speaker, I would like to discuss in some depth the provisions 
in this compromise as they relate to programs administered by 
HUD. 

COMHUNITY DEVBIX)PMENT BLOCK GRANT PROGRAM 

The community development block grant program is modified in 
a number of ways through this bill. Section 101 clariHes the pri- 
mary objective of this program to benefit persons of low and mod- 
erate income. Each State and unit of general local government 
must certify that, over a period of not more than 3 years, not less 
than 51 percent of a grantee's CDBG funds are used for activities 
that benefit low- and moderate-income persons. This is a compro- 
mise from the language of H.R. 1 and is a fair and equitable 
method of measuring tlus assistance. 

Sectifm 102 contams various provisions relating to the designa- 
tion of entiUement grantees. For exeunple, the bill permits all cities 



yGoot^le 



240 

designated as metro cities in 1983 to retain such designatdon for 
1984 and 1985. It allows cities in zin urban county that gain metro 
city designation to forego such designation if they remain a part of 
the urban county. The bill also provides a transition for counties 
that lose urban county designation because of population decline. 

The bill also authorizes $3,468,000,000 for the basic community 
development block grant program for each of fiscal years 1984, 
1985, and 1986. 

Section 104 includes several s^ificant provisions relating to 
HUD's CDBG programs. It requires grantees' statements to include 
a description of how it has used CDBG funds in previous years, to 
identify estimated amounts that will be used for activities benefit- 
ing low- and moderate-income persons, to submit plans for mini- 
mizing displacement of low- and moderate-income persons and pro- 
vide assistance to persons displaced. This section also requires 
grantees to provide citizens reasonable access to records showing 
past use of grant funds and to provide citizens an opportunity to 
comment on any substantial change in the use of their funds. It re- 
quires grantees to further fair housing and requires grantees to 
certify that they have developed a plan identifying community de- 
velopment and housing needs and objectives. 

Also in section 104, grantees will not assess low-income residents 
to recover local funds used jointly with block grant funds on public 
facilities projects unless they use block grant funds to pay the as- 
sessment in behalf of the low income residents. Moderate-income 
residents cannot be assessed to recover local and block grant funds 
unless the grantees can certify they have insufficient CDBG funds. 

The section also requires grantees to make performance reports 
available to citizens. These reports must contain an evaluation of 
the grantees' accomplishments against its objectives and identify 
the amount of funds used to support activities that benefit low and 
moderate income persons. 

In addition, section 104 directs the Secretary to work with inter- 
est groups in developing uniform, recordkeeping, evaluation report- 
ing, performance reporting, and auditing requirements to be used 
by States and requires that substantial disbursements from lump- 
sum drawdowns for rehabilitation begin within 180 days of receipt. 

The bill in section 105 authorizes each unit of government to use 
up to 15 percent of its grant for public services, or if a higher 
amount was used in fiscal year 1984, that amount may be spent on 
public services. It authorizes grants to be made available to non- 
profit organizations to assist in the development of shcired housing 
opportunities for elderly persons. 

It edeo prescribes that at least 51 percent of residents served by 
an "area benefit" activity be low- and moderate-income persons 
before that activity cem be counted as benefiting low- and moder- 
ate-income persons but provides an exception when a community 
has no areas occupied predominantly by low- and moderate-income 
persons. 

Section 106 makes several provisions relating to the administra- 
tion of the CDBG pr^am. It allows, for esample, HUD to adminis- 
ter the small cities CDBG prcKram in those States that elect not to 
administer it, but States should determine by the b^inning of Oc- 



yGoot^le 



241 

tober whether or not they wish to operate the prc^am for their 
ownnnall cities. 

Hie bill requires the Governor of each State to certify that for 
the small cities program, its recipients have identified community 
develcqmient and housing needs, including the needs of low- and 
moderate-income persons and the activities to address those needs. 
It also applies requirements for minimizing displacement further- 
ing civil rights and fair housing objectives and providing opportuni- 
ties for public participation to the small cities receiving CDBG 
funds. For administrative costs. States may use $100,000 plus up to 
2 percent of its CDBG zillocation, provided it matches each CDBG 
dular with State resources. 

Section 107 authorizes $68,200,000 for the Secretary's discretion- 
aiy fund for 1984, 1985, and 1986. 

The bill restricts the use of section 108 loan guarantees to those 
grantees which Cfuinot complete the financing of an activity in a 
timely manner without the guarantee. It requires the Secretary to 
honor requests for such guarantees up to the limits contained in 
Appropriations Acts. 

Section 109 ia modified to insure that communities may use sur- 
fdus funds generated by urban renewal projects for el^ble commu- 
nity development activities in their jurisdiction. 

UKBAN DEVELOPMENT ACTION GRANTS 

Section 121 authorizes $440,000,000 per year for fiscal years 1984, 
1985, and 1986 for urban development action grants. It expands the 
number of cities that can participate by adding the extent of unem- 
plmrment, job lag, or labor surplus as a criteria for eligibility. 

Eligibility to compete for action grants is retained for any small 
dty that had eligibility during fiscal year 1983 and subsequently 
lost it, until the Secretary revises eligibility criteria to include un- 
employment, job lag, or labor surplus eis a standard. 

B^inning in fiscal year 1984 the bill requires a ne^borhood 
impact analjrsis be made avEiilable to any interested person or orga- 
nization residing or located in the neighborhood in which the pro- 
posed activities are to be carried out. 

Tbe Secretary is directed to establish selection criteria for a na- 
tional competition for action grants and states that the Secretary 
may not discriminate among UDAG applications on the basis of 
the particular type of activity involved, whether such activity is 
primarily a neighoorhood, industrial, or commercial activity. 

This section also encourages cooperation by close small cities to 
apply for action gremts and provides up to $2,500,000 annually for 
t^hnit'J'l assistance grants to assist small cities develop, apply for 
tmd implement UDAG programs. 

URBAN HOMESTEADING 

Section 122 authorizes $12 million for fiscal year 1984 and $8 
million for fiscal year 1985 in urban homesteading funding. This 
section extends the required occupancy of a homesteaded property 
frimi 3 to 5 years prior to a homesteader's receipt of fee simple title 
to the property and extends time limits for completion of required 



yGoot^le 



242 

repair work. A number of changes in homesteader selection criteria 
are made. 

A multifamily demonstration is created for Secretary-held multi- 
family properties, requiring that not less than 75 percent of resi- 
dential occupants shall be lower income families after rehab or 
conversion. This section authorizes a set-aside of $1 million in each 
of fiscal year 1984 and fiscal year 1985 for a demonstration of the 
use of locally owned properties for homesteading. 

NEIGHBORHOOD DEVELOPMENT DEMONSTRATION 

Section 123 authorizes HUD to carry out a neighborhood develop- 
ment demonstration program. Eligible neighborhood activities in- 
clude: Creating permanent jobs in the neighborhood, establishing 
or expanding businesses within the neighborhood, developing, reha- 
bilitating, or managing neighborhood housing stock, developing de- 
livery mechanisms for essential services that have lasting benefit 
to the neighborhood, or planning, promoting, or financing volun- 
tary neighborhood improvement efforts. Eligible neighborhood or- 
ganizations must be responsible to residents through a governing 
board that consists of a m^ority of resident members. Primary 
beneficiaries must be low- and moderate-income persons. 

The Secretery is authorized to provide matching funds to eligible 
groups for conducting this program and up to $50,000 may be pro- 
vided to any neighborhood group in a program year. Neighborhood 
groups must have demonstrated achievement in an eligible activi- 
ty; $2,000,000 for each of the fiscal years 1984, and 1985 is author- 
ized to be set-aside from the Secretary's discretionary fund. 

SECTION 312 REHAB LOAN PROGRAM 

Section 124 authorizes continuation of the section 312 rehabilita- 
tion loan program for fiscal year 1984 and precludes the Secretary 
of HUD from mandating the types of dwellings to be assisted with 
rehabilitation loans. 

The rental rehabilitation portion of the rental housing and pro- 
duction grant program offers a new, cost-effective approach to 
housing lower income households. The program supports a basic af- 
fordability strategy for lower income persons by assuring that 
decent unite are available for persons receiving housing assistance. 
The rehabilitetion grants will make repairs to lower income hous- 
ing both affordable and feasible. The availability of tenant housing 
assistance means that lower income tenants in the buildings being 
rehabiliteted are not displaced and that other lower income ten- 
ants have the opportunity to move into vacant unite. 

Because the program is designed for projecte needing modest 
levels of repairs and because private funds are required in t^ 
projects, the program is capable of assisting many unite. In ffict, 
the rehabilitation program will provide as many as 30,000 rehabili- 
tated unite each year. Because the program will be operated by 
Stete and local govemmente, it can be teilored to the specif needs, 
housing markete, and problems of various parte of the country. 
Local flexibility and control is maximized and Federal redtape and 
intervention minimized. 



yGoot^le 



243 

lUs is a program not just to rehabilitate housing but to provide 
iflbrdable housing for lower income households. While the rental 
rehabilitation portion of the pn^ram prohibits burdensome project 
rent r^ulations, it includes very strong provisions targeting bene- 
fits to lower income households. Projects must be in areas where 
rents are generally affordable to lower income families and where 
rents are expected to remain affordable. All programs must be de- 
signed so that funds are used to benefit lower income families. 

Section 301 of title III authorizes $150,000,000 in 1984 and 
1150.000,000 in 1985 for rehabilitation grants. Development 
grants — new construction and substantial rehabilitation — have au- 
thorization levels of $200,000,000 in 1984 and $115,000,000 in 1985. 

A rental rehab application is required to address targeting of 
funds through neighborhood selection to low-income households. 

One hundred percent of funds must be spent to beneflt lower 
income; however, the grantee may reduce that to 70 percent per 
HUD standards. With specific approval of the Secretary, low 
income benefits may be reduced to 50 percent. 

Other program rules provide limits on the amount of subsidy 
that may be provided; permit rehabilitation only in neighborhoods 
not excee<ling 80 percent of medifin income for area; limit rehabili- 
tation to essential improvements; prohibit involuntary displace- 
ment of very low-income families by higher income families; pro- 
hibit rent restrictions except by laws predating this act; forbid con- 
version to condominiums for 10 years; prevent discrimination 
against subsidized tenants; insure an equitable share of funds for 
large families and afford priority for substandard units occupied by 
very low-income families. 



For the subsidized housing program, this bill conforms in total to 
the actions of the Congress in providing appropriation for this pro- 
gram. The total budget authority provided amounts to 
19,912,928,000. 

Within that total, consistent with amounts already specified in 
appropriations acts, this bill sets forth the following: $1,289,550,000 
to provide for 7,500 public housing units including 2,500 units spe- 
ciiically for Indian families; $1,926,400,000 for section 8 subsidies in 
connection with 14,000 section 202 units; $1,550,000,000 for public 
bousing modernization; $2,217,150,000 to provide for 32,500 section 
8 existing certificates; and $540,000,000 to provide for 7,500 section 
8 moderate rehabilitation units. 

The total number of units thus far is 61,500 additional incremen- 
tal units. The bill is otherwise in conformity with the use of assist- 
ed housing budget authority described in the table accompanying 
the recently enacted continuing resolution. 

In addition to the above, the bill provides authorization for ap- 
prapiiations for a number of additional purposes. This includes 
$242,115,000 for an experimental voucher program. This amount 
would provide for ftasistance to an additional 15,000 families. 

The bill also provides authorization for $1,603,170,000 for 23,500 
more section 8 existing certificates. In total, the bill would provide 



yGoot^le 



244 

for 100,000 more familieB to be assisted as was stated in the confer- 
ence report on HUD's 1984 appropriation. 

The bill also provides for funding the new rental rehabilitation 
and production programs out of the amount of budget authority 
available in the subsidized housing account. There is sufficient 
budget authority available in the account to finance all of the 
above activities, although the Appropriations Committee may have 
to determine a reallocation of carryover and recapture amounts 
prior to their acting upon these authorizations. 

ASSISTED HOUSING 

Let me now describe the bill's provisions with regard to assisted 
housing. The bill will maintain almost all basic assisted housing 
authorities, and it will fund them consistent with appropriations 
actions. However, two important changes should be empheisized. 

First, the section 8 new construction program is repealed by sec- 
tion 209 of the bill, except for funds appropriated prior to January 
1, 1984, and except for funds used in connection with section 202 
housing for elderly. Congress has recc^nized that this extremely 
costly production program is simply not efficient, and this bill en- 
sures that this intent is not violated. 

Second, the bill authorizes a new demonstration prc^am for 
housing vouchers. The program will incorporate a subsidy based 
upon a payment stendard rather than a fair market rent, and thus 
will contain a "shopping incentive," which is not present under 
other comparable programs. In addition, the program will provide 
for discretion on the part of local public housing agencies (PHA's) 
to adjust assistance payments twice over the 5-year term of the as- 
sistance contract. The authorization of this demonstration repre- 
sents £in excellent stert in establishing more efficient assistance 
programs for lower income households. 

The bill before you also contains essential provisions regarding 
the tenant rent contributions of assisted households. The bill re- 
tains the basic contribution levels established by the Omnibus 
Budget Reconciliation Act of 1981. Generally, tenants of assisted 
housing will contribute 30 percent of adjusted income toward rent. 
However, this bill defines adjusted income, and includes certain ex- 
clusions from income. Under the deductions allowed in the bill 
$480 is allowed for each family member under age 18 — other than 
the head of the household or spouse — or who is handicapped, dis- 
abled, or a full-time student; $400 for any elderly or nonelderly 
handicapped family; medical expenses of an elderly family in 
excess of 3 percent of income; and certain child care expenses. I 
should note also that the bill reteins the current tenant protection 
in the form of a 10-percent limitetion on rent increases from the 
phasing in of the rent contribution level. These ac^ustments pro- 
vide some relief to the most needy HUD subsidized tenants while, 
at the same time, meeting congressional desires to preserve equity 
among HUD tenants and reduce some of the disparity between 
rents paid by subsidized and unsubsidized low income households. 

As I have mentioned, the compromise legislation maintains basic 
assisted housing authorities, including authority for the section 202 
program for elderly and hfindicapped households. In addition, sec- 



yGoot^le 



245 

tkn 223 at the bill makes a aumber of amendments to section 202. 
Some are strictly programmatic, in that they define certain techni- 
cal aspects of the pn^ram. These include: establishing the loan 
rate at 9.25 percent; limiting sponsor contribution to $10,000; limit- 
ing the number of efficiency units in a project to 25 percent, unless 
a greater number is requested by the sponsor; and, establishing cer- 
tain conditions under which the sponsor may exercise discretion to 
curtail the development costs of the project or use the leeist costly 
developer through a competitive bidding process. 

Other amendments, also made under section 223 of this bill, pro- 
vide special emphases within the section 202 program, such as: 
taking into account special design features or congregate space nec- 
esBary to meet elderly and handicapped needs; accommodating 
handicapped persons who have been released from residential 
health facilitieB; or encouraging group homes and independent 
living facilities for nonelderly, handicapped households. Finally, 
Bobsection 223(j) limits the Secretary of HUD in his ability to ap- 
prove prepayments of section 202 loans and is prohibited from sell- 
mgany section 202 mortgage. 

The "bill contains two other noteworthy provisions with respect to 
elderly housing. Under section 211, the Secretary of HUD is di- 
rected to permit assistance under the section 8 existing housing 
and moderate rehabilitation programs for elderly families who 
elect to live in shared housing. Shared housing is a concept that 
has broad support. Shared housing arrangements can contribute to 
reduced housing costs, companionship, and security for elderly per- 
sons. It is time we saw this concept realized under the assisted 
bousing prognuna. Under the provision, HUD also is to issue mini- 
mum habit^ility standards for shared housing. 

Also, under section 224 of the bill, congregate housing services 
are authorized for fiscal year 1984 at a level of $4 million. 

This bill takes deliberate steps to protect the status of assisted 
hou^ng is not Insured under the National Housing Act. For exam- 
I^, section 217 of the bill extends troubled project operating subsi- 
dy to projects which are not insured but are assisted by HUD and 
sections 218 and 219 provide for amendments for these projects re- 
ceiving rental assistance payments and rent supplement assistance. 

I also want to mention that under the assisted housing provisions 
of the bill, the special needs of certain lower income households are 



First, the bill, under section 210, extends assistance under the 
section 8 existing housing program to single room occupancy hous- 
ing. This, of course, would be subject to local demeuid for such 
housing. 

Second, section 216 authorizes up to $60 million for fiscal year 
1984 for grants to States, local governments, Indian tribes, and 
nonprofit organizations to provide shelter for the homeless who 
face life-threatening circumstances. 

Third, a special demonstration project is authorized under sec- 
tion 225 of the bill to provide assistance to local governments to en- 
ooonige the upgrading of housing occupied by lower income fami- 
lies, and to provide coordination at the local level so that families 
' 1 under HHS pn^rams can find and occupy decent housing. 



yGoot^le 



246 

Grant funds could be used for a variety of housing services, includ- 
ing housing assistance. 

Fourth, homeownership assistance under section 235 is author^ 
ized, subject to appropriation acts. New assistance contracts would 
be for 10 years, although provision is made for extension of such 
contracts, should the homeowner be unable to make full mortgage 
payments at the end of the 10-year term. 

Fifth, section 203 of the bill provides a priority in the section 8 
and public housing prc^rams for families paying more than 50 per- 
cent of income for rent. This priority recognizes the affordabUity 
problem faced today by renters, and targets assistance at the most 
needy — those with the highest rent burden. 

And sixth, under this bill, the Secretary is authorized to carry 
out a demonstration to determine the feasibility of using public 
housing facilities for child care services for lower income families. 
Funding for this demonstration will be provided through CDBG 
funds. 

I do have concerns with the spending implications of the propos- 
als I have described; but, they do reflect a creditable job at identify- 
ing those areeis where special efforts need to be taken on behalf of 
lower income families. 

In summary, the assisted housing provisions respond both to the 
needs of lower income families and the reality of fiscal discipline. 
In this regard, the bill is positive in providing the prt^ams needed 
and positive in its reflection of a continuing bipartisan commit- 
ment to lower income housing. 



This legislation contains important changes in FHA pn^rams. 
These changes are designed to better serve first-time home buyers, 
to mfike FHA more effective as a provider of credit, and to improve 
bzksic program operations. I would like to note first that basic in- 
suring authorities, including those for nursing homes and hospitals, 
are extended for 2 years, as opposed to the historical 1-year exten- 
sion. Also, the credit ceiling for fiscal year 1984 is set at $50.9 bil- 
lion. 

An important provision applicable to most insuring authorities is 
contained in section 404. This section eliminates the requirement 
that FHA interest rates be set by law, and allows FHA to operate 
under a negotiated interest rate structure. In this way, FHA will 
operate under normal market practices, where rates are agreed to 
by the lender and the borrower. As a result, points normally associ- 
ated with FHA transactions can be minimized. 

In the general area of single-family housing, some very creative 
changes are being made. 

First, a number of alternative mortgage instruments will be per- 
mitted by the bill. These include: a principal indexed mortgage, 
where monthly payments and the outstanding balance on the loan 
can be adjusted for inflation according to an index; an Etdjuatable 
rate mortgage for single-family housing, under which periodic ad- 
justments to the interest rate can be made; and a shared apprecia- 
tion mortgage, under which the lender can assume a share of pro- 
spective property appreciation in return for a lower interest rate. 



yGoot^le 



247 

TlwK mortf i instruments will have the potential of making 
mortgage ci >t more available and more affordable to home 
\nfexB, and cause FHA now will be able to offer them, will 
extend these tinancing options to the first-time home buyers that 
FHA serves. The bill adoressea consumer concerns raised by such 
loans and limits activity under these mortgage instruments to 10 
pmcmt of the aggregate number of mortgages insured under title 
n of the National Housing Act during the previous fiscal year. 

Second, in addition to providing new mortgage financing options, 
the bill emphasizes homeownership opportunities of £ill varieties, 
including cooperatives, condominiums, £md manufactured homes. 
Sections 419 and 420 of the bill ease certain restrictions with 
regard to insuring cooperative and condominium units, respective- 
br. The latter provision also raises the maximum mortgage amount 
nir condominiums. In addition, a series of amendments improves 
manufactured home financing. Section 415 permits the insurance 
of an existing manufactured home which previously did not have 
insured financing, and section 417 authorizes the refinancing of a 
manufactured home or a manufactured home and lot. In both cases 
the home must have been constructed in accordance with the na- 
tional manufactured housing construction and safety standards. Fi- 
naUy, section 416 raises the loan limits for insurance of a manufac- 
tured home and lot, combined — a long overdue adjustment. 

liiird, this legislation contains provisions to make FHA insur- 
ance more wi^Whr available to areas which may not have received 
the benefit of FHA insuring activity in the past. The bill extends 
FHA insurance to American Samoa, to Hawaiian homelands, and 
to Indian reservations. In the last two cases, the bill's provisions 
otend insurance authority without regard to marketability of title, 
and this reflects a special effort on the part of the administration 
and Congress to extend home financing opportunities fairly to 
these unaerserved people. 

Fourth, section 424 of the bill provides that for buyers of modest- 
hr priced houses — those with a value of $50,000 or less — lower 
iknnipaymenta than normal will be required. Loans of 97 percent 
viU he available for these cases. This provision clearly will permit 
more first-time home buyers with a modest income to participate 
in FHA programs, and is an example of the targeting which FHA 
is tiying to achieve throughout its activities. 

I firmly believe that because of the provisions I have just de- 
Kribed, FHA will be a better position to meet its market and to 
o^r a wicte range of homeownership options to those who may be 
and ww e iv ed in the conventional market. Let me emphasize, in ad- 
dition, that the bill treats multifamily housing in the same positive 
wajr that it addresses single-family housing. 

u the first place, the extender provisions of the bill make an im- 
portant change to the coinsurance program authorized under the 
mtknal Housing Act. This change relaxes the limitation on the 
volume of aetivi^ which can be insured under coinsurance provi- 
MBs. The bill eliminates the individuctl 20-percent caps for single- 
Hd mnlti^mily insurance, and raises the aggregate cap on coin- 
■tfinoff activity to 40 percent of all insured loans. This is vitally 
in^cstant be ^use HUD'S multifamily programs will soon begin to 
tapkjy a ooii irance format to a much greater extent, and should 



yGoot^le 



248 

not be restrained by the previous arbitrary limitation. The benefits 
of coinsurance are compelling: It maximizes the role of the private 
sector; it reduces processing time through lender processing; and, it 
reduces HUD's exposure to losses through risk sharing, mcreased 
cooperation and direct involvement of the private sector in multi- 
family program will be facilitated through this change. 

A second area of improvement involves rent deregulation. Sec- 
tion 431 of the bill provides the Secretary of HUD discretion as to 
rent regulation. This affects section 207 and 234 of the National 
Housing Act, authorities which do not now provide for this discre- 
tion. I believe it is important for unsubsidized FHA proertmis to 
parallel conventional market practices, and the deregulation of 
rents contributes to this objective. I am sorry, however, that this 
provision will apply only to prospective insurance. 

1 am concerned, also, with section 433 of the bill. This provision 
limits the ability of the Secretary to approve prepayments of mort- 
gages—for assisted housing — and to forestall requests for prepay- ; 
ment of multifamily mortgages which receive assistance but which j 
do not require Secretarial approval of prepayment requests. I be- j 
lieve HUD now exercises adequate oversight of such situations, and -i 
has adequate procedures to handle such cases, and that a legisla- 
tive mandate in this regard probably is not needed. 

A third area of innovation regarding multifamily insurance in- 
volves the provision of new mortgage instruments and new insur- 
ing authorities. Subpart 4 of title IV of the bill provides for: a grad- ! 
uated payment mortgage for multifamily housing, to reduce d^ i 
service costs in the early years of a project's life; a shared apprecia- ^ 
tion mortgage for multifsunily housing — limited to 5,000 units in I 
any fiscal year — and partially amortizing mortgages for multifam- il 
ily housing — limited to 10,000 units in any fiscal year. These new 
instruments will enhance FHA's ability to provide financing for 
unsubsidized rental housing development. Income properties in 
many cases require innovative financing techniques, and the bill 
extends such techniques to FHA. 

In addition, section 437 of the bill adds insuring authority for 
board and care homes to section 232 of the National Housing Act 
In addition to nursing homes and intermediate care feicilities, HUD 
now will be able to insure a residential facility which provides 
room, board, and continuous protective oversight. The Eiging of our 
population, and the need for noninstitutional alternatives for elder- 
ly living, make this provision particularly timely and wise. 

Finally, I want to point out that the provLsions of the bill affect- 
ing FHA have been concerned with the soundness of FHA pro- 
grams. In light of the new thrusts in mortgage financing contained 
in the bill, Euid the extension of mortgage insurance programs to 
underserved areas, the bill allows mortgage insurance premiums 
for the alternative mortgage instruments and for insurance on Ha- 
wsiiian homelands to exceed the regulatory limits for other pro- 
grams, subject to the statutory 1-percent limitation. In addition, 
the provision for insureuice of single-family housing on Indian res- 
ervations allows a premium of up to 3 percent. The bill also re- 
quires the Secretary to assess the actuarial risk involved with the 
low downpayment loan I described previously. These provisions are 
designed to insure that the new programs operate with an ade- 



yGoot^le 



249 
qnate premium and not endanger the current status of the insur- 

I should add that the bill also addresses minimum property 
standards for insured housing. Section 405 of the bill requires that, 
for other than manufactured homes, energy performance standards 
required by the Secretary be at least as eH'ective in performance as 
those contained in the MPS on September 30, 1982, and that health 
and safety requirements for insured properties comply with a na- 
tkmally recognized model code or with a State or local code based 
upon a national code or its equivalent. 

In two are&s, the bill calls for further evaluation, or for a demon- 
■tration prqject, before pure authorization is extended. These are: 
m evaluation of the existing use of home equity conversion mort- 
gage; and a demonstration in two regions of a reinsurance pri^am 
with private mortgage insurers. 

In summary, the FHA portion of this bill represents a giant step 
fbrward. There is no question in my mind that FHA will become 
more efiective in providing single-family and multifamily mortgage 
credit more effective in serving modest income home buyers — in- 
cluding first-time home buyers — and innovation in mortgage fi- 
nance. 

CONCLUSION 

Mr. Speaker, in conclusion, this legislation deserves our support. 
We need a bill such as this, not only because of the international 
aspects, but also because we have not had a comprehensive housing 
and community development packeige since the 1981 Omnibus 
Budget Reconciliation Act. 

The budget authority costs for the housing and community devel- 
opment portions of the bill are essentially the same as the levels 
appropriated for 1984 for HUD and FmHA programs. HUD's new 
assisted housii^ prt^ams are funded within the $9.9 billion of 
budget authority contained in the HUD-Independent Agencies Ap- 
propriations Act (Public Law 98-45). Budget outlays in the bill for 
nousing and community development programs are within 2 per- 
cent of those estimated for HUD and the FmHA rural housing pro- 
grams at their 1984 enacted levels. The bill authorizes HUD's 
m^jor housing credit programs to operate in 1984 at the enacted 
appropriation levels of $50.9 billion for FHA and $68.25 billion in 
GNMA. 

The bill allows the administration to continue eiforts to reduce 
excessive costs of some housing subsidy programs while preserving 
the benefits received by eligible low-income households. It also au- 
thorizes mcnor structural reforms to make homeownership more 
readily available, especially for first-time home buyers and those 
who purchase lower priced homes through FHA. 

&lr. Speaker, finally I wish to thank the Members and their re- 
mective staff for the excellent cooperation displayed in developing 
this moet complex legislative packfige. 

The bill represents a bfilanced approach for providing housing 
subsidies to low-income households, housing credit assistance to 
American home buyers not served by the private market, and com- 
munity and economic development support for local communities 



yGoot^le 



250 

within the resources Congress has made available for those in 1984 
appropriations actions for HUD and the FmHA rural housing pro- 
grams. 

Mr. Leach of Iowa. Mr. Speaker, will the gentleman yield? 

Mr. Wyue. I yield to the gentlemein from Iowa. 

(Mr. Leach of Iowa Eisked find weis given permission to revise and 
extend his remarks.) 

Mr. Leach of Iowa. I thank the gentleman for yielding and ui^ 
support for the IMF legislation. We simply cannot ztfford to play 
Russian roulette with the international monetary system and domi- 
noes with the American economy. 

Mr. Speaker, the cloud over this vote on the IMF is the question 
of whether it represents a banking bailout. This is a fair question. 
But the fair answer is that the legislation represents a bailout of 
the monetary system, not the banking system. 

Prior Congresses have voted contingency l^islation that could 
have the effect of bailing out the banks. That is what the FDIC and 
Federeil Reserve Acts are all about. 

Hopefully, no bailout of banks will be necessary. But if such dire 
circumstances come to pass, it should be noted that 82 percent of 
the funds to be obligated in this replenishment for the IMF come 
from foreign countries, whereas 100 percent of any other approach 
to aiding the banking system will come from the U.S. taxpayer, di- 
rectly or indirectly. 

In addition, it should be stressed that the countries in trouble 
today are not only important U.S. trading partners but anchors of 
the free world — countries like Mexico, Brazil, Argentina, Nigeria, 
and Indonesia. Just as no American President will allow the bank- 
ing system to collapse, no American President will allow these 
countries to fall into economic anarchy. The alternative to modest 
lending support to the IMF is massive direct foreign aid and an in- 
determinate but certainly very large increase in military spending. 
It is thus far more costly to vote against than for the IMP. 

The issue is whether trade or edd has the best chance to pull us 
out of the mess we are in. 

To my Democratic colleagues, it should be noted that a vote to 
turn our back on the international monetary problem increases the 
likelihhood of conflict in the world: It is both cheaper and safer to 
concern ourselves with building rather than destroying. 

To my Republican colleagues, let me stress that the word of the 
President of the United States is at stake. Our President has 
worked for 2 years to defer and restrain the U.S. financial obliga- 
tion to the IMF. He has struck a very prudent deal, involving Uie 
lowest percentage contribution ever negotiated by an American 
President to a similar international institution. Instead of being on 
the line for 30 percent or more of total international funding, 
which has been the postwar norm, President Reagan has commit- 
ted our country to an 18-percent contribution, which is less than 
our total percentage of the world's GNP. 

This legislative package represents a conservative deal to con- 
serve the world economy. It includes stricter controls on U.S. par- 
ticipation in the IMF and tighter regulation and supervision of pri- 
vate lending overseas. 



yGoot^le 



251 

Last montii at the IMF's annual meeting. President Reagan de- 
■ciibed the IMF as the "linchpin of the international financial 
nstem," and he declared before the Eissembled finance ministers 
uat this legislation haa his complete support. 

I urge my colleagues, especially those on this side of the aisle, to 
follow the lead of our President and pass this legislation which is 
» essential to the continued economic recovery of this country. 
This is not a bailout of the big banks or a foreign aid giveaway. It 
is a carefully crafted piece of legislation which will place curls on 
the lending excesses of the big banks. 

Many critics of U.S. involvement in the Fund have the impres- 
sion that the m^ority of IMF's resources go to overextended "Third 
World countries. Quite the contrary, the vast majority of IMF re- 
sources have been used to provide temporary balance-of-payments 
support to Western European countries such as Great Britain, 
France, and Italy as well eis the United States. 

The United States has been the second lai^est borrower from the 
Fund over its history. Only Great Britains' drawings have exceeded 
ours. We have drawn from the Fund on 24 separate occasions for a 
total exceeding $7.5 billion. In November, 1978 for example, we bor- 
rowed $3 bilhon in German marks and Japanese yen to help slow 
the rapid fall of the dollar. 

Critics have also failed to appreciate the fact that payment of the 
U.S. quota to the IMF has no direct impact on the Federal budget 
because it entails no net outlay from the Treasury. When the IMF 
draws on the U.S. quota we are credited with an increase in our 
reserve position in the Fund. This reserve position is an interna- 
tional monetary reserve asset. Contributing to the Fund is analo- 
gouB to putting money in a bank account. The Fund pays interest, 
so over the years we have made money as we loan it out and been 
required to pay interest when we have ourselves been borrowers. 

Some have charged that this legislation is nothing more than a 
big give-away pn^am. I wholeheartedly concur: Any Member who 
votes against this Dill will be giving away jobs and opportunities for 
increased exports from his district and State. 

Not even the strongest industrial power will be able to sustain 
reasonable growth if the markets in the developing countries 
remain depressed for lack of credit and financing. Iliird World 
countries have been the fastest growing markets for U.S. exports. 
These countries, which have tripled their output of goods from 1955 
through 1980, now buy 40 percent of our exports — more than all of 
Europe, the U.S.S.R., and China combined. 

One fifth of all U.S. jobs depend on foreign trade and about one 
third of corporate profits come from international operations. One 
out of every three acres now in cultivation produces crops for 
export. Two-fifths of our agricultural production is sold abroad. For 
the United States as a whole, agricultural exports account for ap- 
proxiniately $40 billion in income and some 4 million jobs. With 
the IMF's role in supporting and encouraging the growth of inter- 
national trade, it may well be that this quota increase is the most 
important piece of farm legislation in the 98th Congress. 

&mply put, failure to support the IMF implies the likelihood of 
failure to nalt a collapse in the world's monetary system. Without 
the ability to transfer credit and currency, international trade will 



yGoot^le 



252 

Elummet. All of the peoples of the world, particularly thoee like 
irniers who depend on foreign trade, will be the poorer. 

The IMF is crucial to U.S. economic recovery. It safi^uards and 
strengthens those parts of the internationsd economic system 
where free markets and free enterprise thrive. 

To underline our vulnerability to the taking of protectional steps 
in international finance. Data Resource Inc. (DRI) has estimated 
that if South American countries stopped payments in 1984 on 
their debts to the United States, our GNP would fall by some $70 
billion, unemployment would rise by 10 percent and interest rates 
would climb by more than 2 percentage points. 

But there is no need to refer to futuristic scenarios or hypotheses 
in making the case for this quota increase. It is needed here and 
now, and agriculture is a case in point. Directly and indirectly, the 
IMF helps developing countries purchase American farm products. 
The IMF's special cereal facility alone heis financed the sale of 
more than $330 million in farm products, mostly from the United 
States, to developing countries which have experienced severe bal- 
ance-of-payments difficulties. 

From 1981 to 1982, Argentina, Mexico, South Korea, and Brazil 
cut back the purchases of our agricultural products from $6 to $3.2 
billion. With IMF programs in place in several of these countries 
their purchases from the United States are now climbing back to 
pre-1981 levels. 

Above anything else, at issue with the IMF is the problem of pri- 
orities. It simply makes no sense whatsoever for this country on 
the one hand to provide hundreds of millions of dollars in security 
assistance to our allies while on the other hand we deny them any 
resources from the one institution which c£ui best protect their 
long-range economic security. 

From Franklin Roosevelt through Ronald Reagan, the United 
States has given strong bipartisan support to the IMF. This institu- 
tion has been a remarkable success. It cannot solve all the world's 
economic problems, but we can be sure that these problems would 
be a lot worse without the IMF. It is simply too callous for our 
friends abroad and too risky for our economy at home to turn our 
backs on the IMF. It should be passed, forthwith. 

Mr. Paul. Mr. Speaker, will the gentleman yield? 

Mr. Wylie. I yield to the gentleman from Texas. 

(Mr. Paul Eisked and was given permission to revise and extend 
his remarks.) 

Mr. Paul. Mr. Speaker, I thank the gentleman for yieldii^, and I 
rise in strong opposition to the rule. 

Mr. Speaker, the way this rule on the supplemental appropria- 
tion has been written absolutely prevents any democratic or parlia- 
mentary due process. None of the amendments that are supported 
by a m^ority of the American people c£m be considered. The Mem- 
bers of this House who oppose giving additional money to the Inter- 
national Monetary Fund cannot even have a separate vote on that 
question. This is a travesty. It is an example of the Big Fix, and the 
losers are the American taxpayers. 

The process we are being forced to follow here today is the 
strongest proof that the Americein people do not support the bail- 
out of the banks and their bad loans. Itiey do not support tiie IMF 



yGoot^le 



253 

bureaucrata who have transformed that institution into a foreign- 
aid agency and want to make Bure that it keeps expanding its 
power amd influence. If the AmericEm people supported this dis- 
credited policy of throwing bad money after good, this legislation 
would have been passed early last summer. But because a majority 
of the American people oppose this IFM bailout, we find the rules 
of the game are rigged so that the vested interests can get their 
money without an open vote. 

Look how desperate these vested interests are to get this IMF 
bailout through the Congress: Look at the housing bill that would 
never have been considered by the Senate if they had not been 
forced to swallow it in order to get this precious funding for the 
IMF. The new spending authority for subsidies to housing amounts 
to $15.6 billion — and when all of the loan guarantees are figured 
in, it comes to more than $20 billion. All of this for a puny IMF 
(niota increase of $5.6 billion and a couple of billion dollars for the 
GAB. They do not care if the budget jumps $20 billion further out 
of balance, just bo long as the IMF gets the money it wants to keep 
itself in power and pay off its client States and their bankers. 
Haybe the whole idea is to put the United States itself into such 
Bad budgetary shape that we will have to apply to the IMF for our 
own conditionality agreement to rescue our economy in a couple of 
years. 

I sincerely trust that the Members of this House who have de- 
fended the American people against these powerful international 
buieaucrats may have them on notice that this money will be the 
last they dare ask for. There have been rumors, based on some in- 
ternal staff memoranda from the IMF that they were planning to 
come back next year for still more money. Let them pay attention 
this time — if they think they have rolled over Congress and the 
American people and taken their money in spite of our resist- 
ance — do not come back next year, or the year after that. These 
are enough respectable economists who have called for abolishing 
the International Monetary Fund instead of increasing its size that 
next time we will stop them before they can even get to the point 
of bujring their subsidy with pork-barrel politics and more excessive 
spending. 

Mr. MrrCHELL. Mr. Speaker, will the gentleman yield? 

Mr. Wyus. I Etm glad to yield to the gentleman from Maryland. 

Mr. Mitchell. Mr. Speaker, I asked the gentleman to yield be- 
cause I do want to compliment him and our chairman on feishion- 
ing and getting accepted a very significant housing bill. 

Mr. Wyus. Mr. Speaker, I thank the gentleman. 

Mr. Mitchell. Many of us had almost given up in despair. 

We now have a 2-year appropriation for housing, is that correct? 

Mr. Wyue. It is a 2-year authorization. 

Mr. Mitchell. A 2-year authorization. 

Mr. Wyub. That is correct. 

Mr. MrrcniELL. And there was an increase of $1.5 billion added on 
in our housing bill, is that not right, moving it up to 16? 

Mr, Wylie. There wm an increase over the House figure. It was 
under the Senate figure, but it was within the figure in the appro- 
priation bill. 



yGoot^le 



The Speaker pro tempore (Mr. Harrison). The time of the gentle 
man irom Ohio (Mr. Wylie) has expired. 

PARUAMENTARY INQUIRY 

Mr. MrrcHELL. Mr. Speaker, I have a parliamentary inquiry. 

The Speaker pro tempore. The gentleman will state it. 

Mr. Mitchell. Mr. Speaker, I had sought earlier to find out 
whether or not this was a usual procedure under which a vote for 
the rule is a vote for the bill, and 1 would like to get some clarifica- 
tion on that. It seems to me to be a very unusual circumstance, one 
that I do not recEill having encountered during my period of serv- 
ice. 

Could we get some clarification on precedents for this? 

The Speaker pro tempore. The Chair would request the gentle- 
man to direct that question to the managers on behalf of the Rules 
Committee. 

Mr. Mitchell. Mr. Speaker, I would be delighted to direct the 
question to the gentleman from Louisiana (Mr. Long). 

Mr. Long of Louisiana. Mr. Speaker, as I said in the opening 
statement, the Rules Committee well recognizes that it is an un- 
usual procedure. It has been used before. It was used on the nucle- 
ar waste bill. 

In the memorandum that I gave to the gentleman from Mary- 
land, under House Resolution 636 it provided that the Senate 
amendments to H.R. 3809, which was the Nuclear Waste Policy Act 
of 1981, be considered as adopted by the House, and the procedure 
was the same. By the adoption of the rule itself. House Resolution 
636, it constituted the approval of the program that was set forth 
in the nuclear waste bill and that was the same procedure that is 
followed here. 

Mr. MrrcHELL. Mr. Speaker, I thank the gentleman. 

I would like to ask one other question on precedents. 

Where we are dealing with this supplemental appropriation, 
with a number of bills included in it, some of which apparently 
have little or no relationship one to the other, IMF and housing, I 
was wondering whether that was taken into consideration when 
the gentleman was guided by those precedents. 

Mr. Long of Louisiana. Mr. Speaker, it was taken into consider- 
ation, and, frankly, the Rules Committee was not very happy with 
following this procedure. 

Mr. Mitchell. May I add to the gentleman, nor am I. 

Mr. Long of Louisiana. I am sorry, I did not understand the gen- 
tleman. 

Mr. Mitchell. I said, nor am I very happy with it. 

Mr. Long of Louisiana. Certainly the Rules Committee was not 
very happy with it. 

The Speaker pro tempore. The Chair must observe that the gen- 
tleman had been attempting to proceed under a parliamentary in- 
quiry, and at this point it is no longer a valid parliamentary in- 
quiry. 

Mr. Mitchell. Mr. Speaker, the second part of the parliamenta- 
ry inquiry was whether or not there was a precedent or whether 



yGoot^le 



255 

the precedents cited were applicable of this kind of situation that 
we confront. 

The Speaker pro tempore. The point that the Chair wishes to 
make is that all time is controlled, and unless the gentleman from 
Louisiana (Mr. Long) is prepared to yield time, the gentleman from 
Maryland cannot proceed further. 

Mr. MrrcHELL. All right. I thank the Chair. 

The Speaker pro tempore. The Chair recognizes the gentleman 
from Tennessee (Mr. Quillen). 

Mr. QuiuAN. Mr. Speaker, I yield 5 minutes to the gentleman 
from A»ansa8 (Mr. Bethune). 

(Mr. Bethune asked and was given permission to revise and 
extend his remarks, and include extraneous matter.) 

Mr. Bethune. Mr. Speaker, I thank the gentleman from Tennes- 
see for yielding time to me. 

Mr. Speaker, I would like to begin by inquiring of the distin- 
guished gentleman from Louisiana (Mr. Long) on a matter concern- 
ing the Defense Production Act. 

Last evening I appeared before the Rules Committee. I was con- 
cerned that we were including in this basket of measures a reen- 
actment oif the old Defense Production Act when in fact this House 
and the Senate have enacted bills that are much tighter and have 
criteria for lending prc^ams. Accordingly, I was seeking permis- 
sion to do somethinig about that. 

In the course of the presentation before the Rules Oimmittee, we 
discovered mutually that there is a letter from the Defense Depart- 
ment saying they would not spend the $50 million that has been 
appropriated between now and March 1, and I understand that in 
this bill the old Defense Production Act would be renewed only 
until March 1 next year. I want to get that in the Record. 

Is that the gentleman's understanding? 

Mr. Long of Louisiana. Mr. Speaker, if the gentleman will yield, 
the gentleman is absolutely correct. 

There was a letter delivered to the Rules Committee. It is ad- 
dressed to the Honorable Fernand J. St Germain, that is signed on 
the stationery of the Under Secretary of Defense for Research and 
Engineering by R. D. DeLauer, who I assume is the Under Secre- 
tary. And it does so state. 

Mr. Bethune. Mr. Speaker, I thank the gentleman from Louisi- 
ana (Mr. Long), and I include that letter in the Record at this 
point, as f(dlows: 

The Under Secretary Of DeFCNSB, 
Washington, DC. November 17. 1983. 
Hon. Pesnand J. St Germain, 

Chairman, Committee on Banking, Finance and Urban Affairs. House of Representa- 
tives, Wathington, D.C. 

De&K BAb. CaAntMAN: t would like to confirm the Department of Defense position 
OD the UM of the fiscal year 1983 appropriatione authorized under title III of the 
DBtaue Production Act (DPAl. The title III projects are now sufTiciently defined nor 
an the nquesta for proposals fmalized to allow for obligation of the fiscal year 1983 
IH WOp i ' l ationa. Under these circumstances, the Department of Defense will not fi- 
naJioe any contracts utilizing the appropriations authorized under section 799, 
Public Law 87-377, DOD Appropriations Act. 1983, prior to April 1, 1984. 



yGoot^le 



I am sending a duplicate of this letter to Jake Gam, Chairman, Committee on 
Banking, Housing, and Urban Affairs, U.S. Senate. 
Sncerely, 

R, D. DbLaukr. 

Mr. Speaker, everyone has heard me speak, I presume, at some 
length about the fact that lending pr(^ams are growing faster 
than spending programs. At the present time credit assistance pro- 
grsims are growing at an exponential rate. We have over $600 bil- 
lion in credit assistance pn^iuns out there right now, and we have 
got to do something about it because it crowds people out of the 
marketplace and we substitute political decisions for the decisions 
of the marketplace. 

I raise that point because that is precisely what we do in a larger 
context when the IMF makes loans throughout the world. We are 
actually allocating credit now through a super mechanism known 
as the IMF. That was not the original intention of IMF as Em insti- 
tution. Everyone recognizes there are systemic problems with the 
IMF, and they have been discussed at great length. What I want to 
mention today is that it seems to me the heartburn on this particu- 
lar issue insofar as the House is concerned is the bailout-cf-the- 
banks allegation. This House passed an amendment when we con- 
sidered the bill here. It was not debated much, but we passed an 
amendment which would have done something about that. 

I introduced the amendment and I labeled it: "They may have 
ripped us off, but we get the money back." The resison I called it 
that is that the banks did, in the course of making these improvi- 
dent loans around the world, charge interest rates and fees that 
were way in excess of what they should have chEtrged. They con- 
tended that they were exposed to a great risk, and, therefore, it jus- 
tified the interest charge that they made in the so^alled world 
marketplace. 

The fact of the matter is that if this bill goes through, they had 
no risk because we are bailing them out. We are extinguishing 
whatever risk they had. If we are going to extinguish whatever risk 
they had, it seems to me that we ought to recover from them the 
excess profit they made, because if we do not, thev have been un- 
justifiably enriched. And that is all the amenoment that this 
House put in the bill and that I offered would do. 

My amendment was as follows: 

RBIMBURSRMBNT PROM BBNBnCIARlES OP ^UOTA INCRBASBS 



A BENEFiaARIBS OF <)UOTA INCREASES 

"Sec. 5G. (a) The Congress hereby finds — 

"(1) depositor)' institutions have charged excessive rates of interest on loans 
made to foreign countries; 

"(2) such excessive ratee of interest were often imposed in order to compen- 
sate for the declared high-risk rate of lending to such countries; 

"(3) the United States Government, bv increasing its quota contribution to 
the International Monetary Fund, has substantially eliminated the risk of lend- 
ing to those foreign countries which benefit from uie increased resources of the 
International Monetary Fund; 

"(4) such quota contribution by the United States Government will result In a 
considerable financial burden to the American taxpayer^ and 



yGoot^le 



257 

"(5) pennitting depodtory institutions to retain the profits earned from the 

^tceanve interest rates charged to such foreign countries would result in uiijuBt 

eaiichment to such depoeitory institutions in light of the increase in the United 

States quota contribution. 

"(b) Eadi dmodtoiy institution shall transmit a report to the Secretary of the 

Traasury tpeciJying— 

"(I) all loans made by such depository institution to any foreign country; 
"(2) with respect to each such loan— 

"(A) the rate of interest charged on such loan; 
"(B) all service fees imposed on Buch loan; 
"(C) the unpaid balance on such loan; 
"(D) the total amount of interest collected on such loan; and 
"(E) such other information as may be requested by the Secretary, 
"(cKl) The Secretary may examine the books and records of any depository insti- 
tution in order to insure compliance with the provisions of this section. 

"{2) The Secretary shall consult with the Board of (kivemors of the Federal Re- 
■STTe System, the Board of Directors of the Federal Deposit Insurance Corporation, 
•nd other appropriate Federal and State regulatory agencies in order to obtain in- 
formation on foreign loans by depository institutions which may have been reported 
to such agencies. 

"(dXl) The Secretary shall determine which loans made by depository institutions 
or subsidiaries thereof have been extended, refmanced, or made more secure, or in 
tny other manner affected by the increased United States quota contribution to the 
latemational Monetary Fund made pursuant to section 40. 

"(2) Ilie Secretary shall determine the interest rate charged, and the interest rate 
earned, on such loans. All such interest rates shall be determined in accordance 
with provisions of the Truth in Lending Act and the regulations issued pursuant to 
such Act. 

"(eXl) With respect to loans identified in subsection (dl, the Secretary shall deter- 
mine whkh loans have earned for the depository institution involved a rate of 
return which is greater than the rate of return which would have been earned by 
auch depository institution if the principal amount involved had been lent in the 
United States to a corporate borrower with a rating of AAA for a similar maturity. 
"(2) The amount determined by the Secretary to have been earned in excess of the 
amount which would have been earned from a domestic loan (as determined under 
paragraph (1)) shall be paid to the Treasury as a reimbursement for the increased 
quota contribution made pursuant to section 40 of this Act. 
"(fl For purposes of this section— 

"(1) the term 'depository institution' shall have the same meaning given such 
term in section 19(bKlMA) of the Federal Reserve Act; 
"(21 the term "loan" means any extension of credit to — 

"(A) a foreign government or any agency or instrumentality thereof; 
"(Bl any entity owned in whole or in part by a foreign government unless 
United States persons own at least 1 percent of such entity; 

"(O any entity which is not more than 10 percent owned by United 
States persons.". 

D 1420 

Under my amendment we simply would calculate the amount of 
interest and fees that the banks charged, then we would determine 
what the triple A corporate loan rate for that same period of time 
was and the Treasury Secretary would seek reimbursement of the 
difference from the banks if they are now being benefited by this 
bailout. A very simple proposition, restrospective in its operation, 
to try to recover for the people the amount of money that the 
banks gained as a result of this action of the Congress. 

Now, because debate weis limited here in the House and because 
of this convoluted process in which we now fmd ourselves, a hand- 
ful of elitiats on the Banking Committee on the Senate side and on 
the Banking Committee here and down at the Treasury Depart- 
ment and from the IMF and from the bowels of other agencies scat- 



yGoot^le 



258 

tered about this town have come in and written a bill for us, and 
they have routinely knocked that provision out. 

Well, I assure you that every time I talk about this, I see the 
ears perk up on the lobbyists around who are from the big banks. 
They do not want this amendment in the bill. If we defeat this rule 
today and this bill goes down, I assure you the only way they will 
ever be able to get it through this institution is to include some 
provision such as mine to try to recover the unjust enrichment that 
the banks made at the expense of the American taxpayer. That is 
why I hope we will defeat the rule and get this amendment in the 
bill. 

Mr. Long of Louisiana. Mr. Speaker, I yield such time as he may 
consume to the gentleman from Hawaii (Mr. Akaka). 

(Mr. Akaka asked and was given permission to revise and extend 
his remarks.) 

Mr. Akaka. Mr. Speaiker, I rise in strong support of this rule and 
the legislation that will be enacted upon its passage. I ask unani- 
mous consent to revise and extend my remarks. 

I want to pay tribute to the chairman of the House Committee 
on Banking, Finance and Urban Affairs and the chairman of the 
Housing Subcommittee, the gentleman from Texas, for Eill of their 
diligent efforts that allow consideration of the housing bill on the 
floor today. As you know, only a few weeks aigo it seemed that we 
might never pass a housing bill this year. Today, however, we have 
the opportunity to act on vitally important housing I^islation. It is 
due to the many, many hours of negotiations between the House 
and Senate committees that have produced this legislation. I com- 
mend the committee and their staff for all their hard work. 

In particular, I want to thank the committee for insisting that an 
amendment I offered when the bill was considered on the House 
floor be included in the compromise legislation. My Etmendment 
would require the Federal Housing Administration to insure mort- 
gages of Native Hawaiians who wish to obtain mortgages on prop- 
erty located on Hawaiian homeland. Up to now, individuals living 
on Hawaiian homelands have been unable to obtain FHA insured 
mortgages. 

Under this legislation, individuals owning homes located on the 
approximately 200,000 acres of Hawaiian homelands may obtain in- 
sured mortgages from FHA, My amendment will remove an exist- 
ing impediment and open the door to insured mortgages for Hawai- 
ian homestead leases. 

Perhaps nowhere else do we find such a pressing call for access 
to an established Federal program that has gone unanswered. The 
cost and availability of housing for Native Hawaiians is especially 
acute. In Hawaii, the cost of a home is 2W times greater than the 
national average. By contrast, income levels of Native Hawaiians 
are the lowest in the State. 

Under my amendment, the restrictions against attachment, levy, 
or sale that are contained in leases under the Hawaiian Homes 
Commission Act will no longer prevent homeowners living on Ha- 
waiiem homelands from receiving FHA insured mortgages. It will 
mean greater access to much needed housing for Hawaiians. 

Mr. Long of Louisiana. Mr. Speaker, I yield 2 minutes to the 
gentleman from New York (Mr. Lundine). 



yGoot^le 



(Mr. Lundine asked and was given permission to revise and 
extend his remarks.) 

Mr. Lundine. Mr. Speaker, I wish to speak in support of House 
action to amend H.R. 3959, the supplemental appropriation for 
fiscal 1984, with the compromise provisions of both H.R. 2957, the 
International Recovery and Financial Stability Act, and H.R. 1, the 
Ifousiiig and Urban-Rural Recovery Act. 

I recognize that some dissatisfaction exists with the necessity of 
combining a m^or housing reauthorization bill with legislation to 
increase Uie U.S. quota contribution to the International Monetary 
Fimd, as well as with the need to bring both measures before the 
House as amendments to the conference report on the supplemen- 
tal appropriation. I think this is unfortunate, but strongly believe 
that we have no other alternative to this procedure. Given the 
narrow House vote in support of the international financial provi- 
sions, and the administration's strong opposition to the needed 
housing provisions in H.R. 1, this process has become absolutely 



I wiah to commend the chairman of the Banking Committee (Mr. 
St Germain) for his foresight in recognizing this necessity and for 
his leadership and dogged determination to forge a compromise 
package that is acceptable not only to this body, but to the Senate 
and the administration. 

Let me point out that while I support this broad package of hous- 
ing and international financing provisions, I also supported each 
Cof the package separately when they were considered by the 
se. I continue to endorse each of the separate proposals. 

The housing provisions in the legislation are absolutely essential. 
Without their enactment, we will go 3 years without approving any 
major housing legislation. This period coincides with the worst re- 
cession in housing since the Great Depression and a period in 
vrhich an increasing number of Americans were either forced into 
poverty or forced to give up their dreams of home ownership. 

While the compromise housing provisions incorporated in the 
l^islation are not all I would like them to be, they do address 
many of the critical housing policy questions the House sought to 
address. They provide needed clarifying and technical changes to 
improve the operation of our community development pr(^ams 
and our public housing and elderly housing pri^rams, while offer- 
ing important new assistance for rental housing construction and 
housing rehabilitation. 

In the area of rural housing, the legislation contains numerous 
provisions to continue our current single-family and multi-family 
housing prc^ams and make them work more effectively. While I 
am disappointed with some of the Senate provisions incorporated 
into tiie legislation, 1 must acknowledge the Senate's support and 
increased funding for a new housing preservation program which I 
nionBored that will greatly enhance the ability of local communi- 
ties to improve their housing stock. I believe this legislation offers 
the strongest rural housing bill we have seen in many years and 
constitutes a mftjor victory over the administration's effort to elimi- 
nate the Nation^ rural housing effort. 

I also strongly support increasing our Nation's quota contribu- 
tion to the International Monetary Fund by $8.4 billion. 1 cannot 



yGoot^le 



260 

^^ee with those Members who term this measure a "bail out" for 
the large international banks. On the contrary, the a4justment pro- 
grams negotiated by the IMF with debtor nations require commer- 
cial banks to make new loans and actually increase their involve- 
ment and exposure in third-world lending. These prc^ams do not 
seek to replace private debt with public money, but provide the 
stimulus to keep commercial banks from merely writing off these 
enormous debts at the taxpayers expense and at the risk of reusing 
interest rates both here and abroad. 

I would also emphasize that the legislation has served as a vehi- 
cle to impose new reserve and operational requirements on the 
commercial banks in order to restrict their questionable lending 
practices and expose their operations to greater public scrutiny. 

The cost of increasing the Nation's line of credit to the IMF is 
certainly insignificant when you consider the possible alternative — 
a collapse of international trade and finance. A default by one or 
more of the major debtor countries would have disastrous conse- 
quences for world trade, particularly for the United States. Since 
the onset of the debt crisis, U.S. export sales to Latin America have 
declined by 22 percent. A default by Mexico, Argentina, or another 
major Latin American trading partner would further cut U.S. sales 
abroad emd force thousands of Americans out of work. 

This strong link between U.S. trade and domestic economic re- 
covery also forms the basis for my continued support for the provi- 
sions extending the charter for the Export-Import Bank. I believe a 
strong and full^ competitive Export-Import Bank is essential if the 
United States is to meet the challenge of foreign competition and 
sustain our economic recovery. 

There are a number of provisions in this portion of the legisla- 
tion which I believe will contribute to improving the operation of 
the Exim Bank. First, the mandate that the Bank be fully competi- 
tive in eill its pr(^rams will insure that our firms remain on a level 
playing field with their competitors. Second, the creation of an ad- 
visory committee to the Board of the Bank will help foi^e a closer 
working relationship between Government and private industry on 
the question of international trade and competitiveness. 

Also important are new provisions establishing a medium-term 
credit Pribram and setting aside Exim assistance for small busi- 
ness. These changes will insure that aggressive efforts are being 
made to assist our small businesses that are the Nation's primary 
job creators and innovators of new products to market abroad. 

Finally, as the original House sponsor of the matching credit pro- 
vision in the Exim Bank provisions, I am obviously pleased with its 
inclusion in the compromise and am convinced that it is essential 
for improving the position of U.S. firms in our own domestic 
market. In recent years, jobs have been lost as vital contracts have 
gone abroad due to foreign subsidies and other assistance provided 
to foreign firms. The requirement that heretofore matching credit 
will be made available to U.S. firms facing subsidized foreign com- 
petition should put an end to the ability of foreign goverments and 
firms to capture American contracts and jobs in this manner. 

Mr. Speaker, I believe this legislation is vital not only for sus- 
taining our own domestic recovery, but for preservirw the stability 
of world trade and finance. Failure to adopt it would mean loss of 



yGoot^le 



261 

jobs and further frustration of the hopes for decent hous- 
ing and jobs of millions of our citizens. 

I urge incorporation of this legislation in the Supplemental Ap- 
pnniriation and support its adoption. 

Mr. Long of Louisiana. Mr. Speaker, I yield 1 minute to the gen- 
Usnan from Texas (Mr. Patman). 

Mr. Pathan. Mr. Speaker, it is very difficult to describe an issue 
or to discuss it in the short length of time that we have here today. 

This rule should be defeated. It is ironic that housing would be 
included with the IMF on this, because if anything will ruin hous- 
ing it is high interest rates. By having this drain of $8.4 billion 
from the U.S. Treasury, we will insure higher interest rates. Not 
only will that $8.4 billion be devoted to world debt, but we will 
have the banks bailed in, as my colleague, the gentleman from 
New York, has said, by the requirement that certain banks loan an 
additional $4 for every dollar in the IMF loans. 

That is a new program that should be stopped. It is a new pro- 
gram of the IMF that causes increased pressure on interest rates in 
this Nation. Those pressures will result in higher and higher inter- 
est rates that American borrowers will have to pay. 

Our country is striving to pull out of a recession. Congress should 
defeat this IMF proposal which could deal a very severe blow to 
that recovery. 

'Hie ones who stand to profit from the $8.4 billion commitment 
are a few of our b^gest urban banks. For them, the IMF deal 
ofTers a partial bailout if any of their high-interest, risky loans to 
shaky foreign countries go sour. These big banks, like Chase Man- 
hattan and Citicorp, have realized they may be in deep trouble if 
debtor countries renege on repayment of their loans. 

There is no question that b^ bemks are at heavy risk on many of 
their foreign loans. The nine largest banks in Uie United States 
have loaned 222 percent of their total capital to nonoil-producing 
developing countries. These are countries with very weak, highly 
inflationary economies. 

A heavy concentration of capital exposure is potentially riskier, 
even, than the actual amount of exposure on all loans. The same 
nine banks that I mentioned have 112.5 percent of their capital ex- 
posed in loans to just three countries — Argentina, Brazil, and 
M^co. 

"Hie importance of the $8.4 billion U.S. commitment to the big 
American banks is that it bolsters the banks' willingness to contin- 
ue lending and to ren^otiate old loans to foreign countries on 
Btretched-out terms. 

The purpose for which the IMF was established after World War 
n is being subverted. Its primary purpose, originally, was to help 
Gauntries with temporary cash flow problems, thereby contributing 
to international stability by averting short-term crises. The thrust 
rf the IMF now has been changed to turn it into what amounts to 
a finvign aid office. 

Host Americans are adversely aSfected by this $8.4 billion com- 
nutment. When these weak, unstable foreign governments allocate 
their IMF credit inefficiently — or even use the money to subsidize 
their own exporters, who can compete in the international market 



yGoot^le 



262 

with an unfair trade advantage over our exporters — it hurts the 
U.S. domestic economy. 

When $8.4 billion more is siphoned out of the U,S. Treasury the 
American domestic money supply will grow tighter. That means 
there will be less money available for domestic borrowing for cap- 
ital equipment, for home building and home buyii^, for new cars 
and for many other purposes. 

There will be less money available for farm equipment, for small 
businesses trying to grow — or trying simply to weather the rec^ 
sion. 

When you t^hten the money supply — with the U.S. Government 
the heaviest borrower of all — you tend to drive up interest rates 
and tighten credit for private borrowers. The economic recovery 
that we all want will be dampened, and we may be driven back 
into a recession that still finds about 9 million people unemployed. 

These are some of the reasons I have opposed this $8.4 billion 
IMF bail out for the big banks. I wUl continue to oppose this dan- 
gerous kind of threat to American taxpayers. 

Mr. QuiLLEN. Mr. Speaker, I yield 3 minutes to the gentleman 
from Connecticut (Mr. McKinney). 

(Mr. McKinney asked and was given permission to revise and 
extend his remarks.) 

Mr. McKinney, Mr, Speaker, I have never in my 14 years in this 
body voted for a closed rule, and yet I would say to you that I sup- 
port this rule. House Resoultion 379, because in essence it is not a 
closed rule. Every single issue that the House is going to package 
together today has been debated in this House, h£is been debated, 
and those Members who care have had their chance to add their 
will to the legislation. 

To my Republican colleagues I would like to point out that a 
similar rule was proposed and adopted by the House last December 
in the closing days of the 97th Congress. On that occasion 121 Re- 
publicans voted for the rule and only 6 voted against it. If you are 
opposed to the substance of the legislation, vote accordingly. But 
don't try to hide behind the parliamentary argument. The record is 
clear. 

Since I raised the question of voting on the substance of this sup- 
plemental appropriations bill, I would like to tell my colleagues 
that the merits of the pack^e deserve our suppwrt. The Senate 
amended in consultation with appropriate representatives of the 
House, Treasury, HUD, and OMB, bills that had been passed by 
the House. The version that we will vote on today is a better ver- 
sion in almost every respect. Some concessions nave been made, 
but on balance 1 think the administration is getting a good deai. 
Believe me, David Stockman would not have agreed to these terms 
if that were not the case. 

The Housing authorization legislation contains a funding level 
within the budget level adoptea by the House. Several prograioB 
that had been included in H.R. 1 have been scaled back or deleted, 
but still the bill addresses some of the major weaknesses in the 
Federal housing programs. 

The amended legislation also improves on the IMF bill that the 
House passed. It continues to require more prudent lending prac- 
tices by the banks as well as continued bank participation. It will 



yGoot^le 



How tbe United Stetes to continue to play a dominant role in 
lapinc the economic and political policies of many developing na- 
onB. The Secretaries of Treasury and State have given this legisla- 



tion their approval. 

In my opinion, H.R. 3959 contains legislation which is in the best 
interest of the people of the United Stetes. I. too, have heard from 
a number of constituents who oppose communism, unsound bank 
practices and several other issues involved in this legislation. I 
nave weighed those arguments against the points made by Presi- 
dent Rea^in and his cabinet as well as numerous other supporters 
of the IMF and housing bills. The answer is clear. 

I do not believe that we can abdicate our responsibility either to 
help provide a steble international financial system or to help pro- 
vide better housing for Americans. This legislative package is nec- 
essary to meet those responsibilities. I intend to support my Presi- 
dent and the American people by voting for House Resolution 379. 

We have a whole entire world economy standing on the brink of 
watehine what this Nation does and how responsible it can be to 
its world commitment. 

I would love to walk through the city of Bridgeport where I have 
lost Dictaphone and Bridgeport Brass and Singer Sewing Machine 
and everything else and say, "Oh, boy, I voted against all that sort 
of stuif,' but the fact of the matter is that Bridgeport would have 
lost them sooner if it had not been for the International Monetary 
Fund, which we started. 

We have a reasonable housing bill. We have a reasonable supple- 
mental appropriations bill. We have a reeisonable continuation of 
the International Development Banks, which we voted for and 
which we all need, it we in fact decide to remain a part of the 
world community. 

Most of us, and 1 look at my good friend from Baltimore sitting 
there, know of my voting record. 

I would just end by saying, Mr. Chairman, what I said with 
regard to Grenada. We can either be a world leader or we can go 
back to the make believe world of Peter Pan. 

Mr. QuiLUEN. Mr. Speaker, I yield 5 minutes to the gentleman 
from Massachusetts (Mr. Conte). 

(Mr. Conte asked and was given permission to revise and extend 
his remarks). 

Mr. CONTB. Mr. Speaker, I rise in strong support for this rule 
and for this Senate amendment authorizing and appropriating 
funds for the International Monetary Fund, authorizing the export- 
promotion activities of the Export-Import Bank, authorizing contin- 
ued U.S. participation in the Inter-American Development Fund, 
and authorizing previously appropriated funds for domestic hous- 



mg 



I also rise in support for the unusual procedure which brings this 
d i verse package to the floor on what we hope will be the flnal day 
of this session. The timing is most critical in r^ard to the Interna- 
txmal Monetary Fund. 

IMF rules require that a country pay its increased quote sub- 
scription befcn« the new quote can become effective. Most major in- 
dusbial countries are waiting for the United Stetes to act before 
approving the quote increase. There is nothing wrong with that; we 



yGoot^le 



264 

started the IMF back with the Bretton-Woods Agreement, and we 
are one of the major beneficiaries of its operations which stabilize 
the international financial system. 

A further delay in this authorization and appropriation for the 
IMF will mean that the quota increase will not become effective, 
and the IMF will not have the resources needed to deal with the 
global debt problem. The Fund's loanable resources are virtually 
exhausted, forcing the IMF to suspend completion of negotiations 
on new lending commitments. 

Delay in implementing the quota increase will mean that coun- 
tries of vital interest to the United States will be unable to obtain 
support necessary to correct their economic problems. 

Mr, Speaker, these countries include Israel, Egypt, the Philip- 
pines, Jamaica, Venezuela. El Salvador, Costa Rica, Honduras, Ni- 
geria, Ivory CoEist, Sudan, Liberia, and Senegal, among others. Sev- 
eral of the countries receive significant bilateral foreign assistance 
from the United States, but we cannot provide all the resources 
needed to bring about fliU economic recovery from the worldwide 
recession. They must receive this assistance from the IMF. If they 
do not, we may be forced to provide far more in the way of bilater- 
al assistance to keep some of these friends afloat. 

For my friends on the Republican side of the aisle, I want to 
remind you of President Reeigan's strong and unwavering support 
for this IMF quota increase. 

That is President Ronald Reagan, our staunch conservative 
leader. The President has stated his support in blunt terms, and I 
quote: 

No legislation now before the Congress is more important to a healthy world econ- 
omy ana to a continuing economic recovery here in the United States. 

Later in an address before the Board of Governors of the World 
Bank and the IMF, President Reagan repeated his commitment. 
Again, I quote: 

My adminiBtration ie committed to do what ifi legitimately needed to help ensure 
that the IMF continues as the cornerstone of the international financial system. Let 
me make something very plain: I have an unbreakable commitment to increased 
funding for the IMF * * *. 1 urge the Congress to be mindful of its reaponsibility 
and to meet the pledge of our Government. 

That is our leader, Republicans. 

The President predicted dire consequences if the Congress does 
not meet this responsibility, in stating: 

At the end of this road could be a maior disruption of the entire world trading 
and fmancial systems — an economic nigntmare that could plague generations to 
come. No one can afford to make light of the responsiblity we all share. 

That was our President, Jack Kemp. That was our President, 
President Reagan, the arch conservative. 

I can see that some on our side are still skeptical. Well, if Ronald 
Reagan is not conservative enough for you on this issue, let us hear 
what Gen. Alexander Haig s^s about this IMF increase. In an op- 
ed article submitted to the WEishington Post this week. General 
Haig wrote: 

We have just devoted increased resources for our military defense. Now wa must 
do the same for our international economic defenses. 

General Hfiig continued: 



yGoot^le 



Hm IMF, armed with adequate reeourcee, is the linchpin in the strategy to avert 
politically cataatrophic conaequences. Without it. the financial problems confronting 
■ number of our key Latin American and other friends could also generate danger- 
oui political and aoaai instability extremely detrimental to our interests. 

There are mixed opinions in this body about Al Haig, but nobody 
has ever questioned his devotion to the security interests of this 
country. I would also mention that he argues strongly and persua- 
sively against attaching political limitations on the IMF in this au- 
tborizatioD. Specifically, he points out that countries such as Yugo- 
slavia, Hungary, and Romania have been able to seek an alterna- 
tive to total dependence on the Soviet Union through such mecha- 
nisms as the IMF. He also states that the IMF is not the proper 
forum for moderating South African racial policies, as disgusting as 
those policies are, with the admonition: 
If we politicize the IMF. what ailments will we have when others do the same? 

Perhaps some others in this House are laboring under the as- 
sumption that there is no constituency for the IMF, other than big 
banks. That is clearly not the case. In case you missed it, a large ad 
appeared recently with the headline: "Pass the IMF legislation." 
That ad continued to state that the IMF protects existing jobs in 
the United States and in the long run promotes new ones, and that 
interest rates and our economic recovery are at stake. Who spon- 
sored that ad? No, it was not the big banks. It was the big employ- 
ers in your districts and in mine. Somewhat belatedly, these com- 
panies which employ millions of Americans have recognized the 
important stake l^y have in this legislation. I will read off just a 
few of these IMF supporters: 

American Association of Exporters and Imfwrters, Alli&- 
Chalmers Corp., the Boeing Co., Cargill, Inc., Caterpillar Tractor 
Co., the Chamber of Commerce of the United States, Chrysler 
Corp., the Coalition for Employment Through Exports, Colgate-Pal- 
molive Co., Continental Grain Corp., Corning Glass, Works, Dresser 
Industries, Inc., Emergency Committee for American Trade, Ford 
Motor Co., General Mills, Goodyear Tire & Rubber Co., Internation- 
al Engineering & Construction Industries Council, Johnson & John- 
son, Land O'Lakes, Inc., Levi Strauss & Co., Lockheed, Corp., 
McDonnell Douglas Corp., Monsanto Co., Motor Vehicle Manufac- 
turers Association, National Association of Manufacturers, Nation- 
al Association, of Wheat Growers, National Rural Electric Coopera- 
tive Association, Owens-Illinois, Inc., Ralston Purina Co., Rockwell 
International Corp., the Singer Co., United States Council for Inter- 
national Business, Westinghouse Electric Corp., and the Weyer- 
haeuser Co. 

These companies and their associations, together with the thou- 
sands of subcontractors and suppliers, represent significant employ- 
ers in many of your districts, and they all support this increase in 
the IMF. lliis is not a risky vote, this is a vote for jobs and for con- 
tinued economic recovery in this country. 

It is also a vote for the economic recovery of the agricultural 
sector rf our economy. The Secretary of Agriculture, John Block, 
recently wrote to me and to other Members expressing again his 
strong support for the IMF. He pointed out that: 



yGoot^le 



The beat potential areas for expanding agricultural exports are the less develop- 
ing countries. These are also the countries facing the most severe short-term liquitU- 
ty problems and extraordinary debt burdens. 

He continued: 

The IMF provides the linchpin to manage this current difficult situation. Conse- 
quently, if we are to realize the full potential for agricultural exports, we must pro- 
vide this crucial short-term financing. 

Our former colleague and now Senator from North Dakota, Mark 
Andrews, who is a farmer himself, recently reversed his earlier op- 
position to the IMF and stated simply in an op-ed article in the 
New York Times that: "American agriculture need the IMF." 
Mark notes that from 1981 to 1982, Argentina, Mexico, South 
Korea and Brazil — the four largest debtors among the less-devel- 
oped countries — cut back purchases of U.S. agricultural products 
from $6 to $3.2 billion, a reduction of 47 percent. Agriculture ex- 
ports to Mexico alone fell by $1.3 billion in 1982. This is estimated 
to have cost 31,000 jobs in the United States. 

Farmers know what exports mean to their income. This is a good 
vote for those of you with large farmer constituencies. 

Mr. Speaker, I have attempted to bring out some of the reasons 
for supporting this Senate amendment. We should vote for the 
amendment to support the President, to help our friends abroad, 
and we should vote for it to help our own economy, companies and 
workers, In fact, I cannot think of any reason not to vote for it. 

But in the slight case that any of you are still not convinced that 
this is a good vote, let me give you one more reason: vote yes for 
me. 

I hope this does not look like a conflict of interest, but as I re- 
viewed the Secretary of Agriculture's reasons for a yes vote on this 
amendment, I become even more convinced that agriculture ex- 
ports are the most promising weapon we have in this tough eco- 
nomic world. 

My mind turned toward that little tomato pach in my backyard, 
as it often does. I began to think about how I am going to support 
my family after I leave this hall someday. There must be i>eople in 
Brazil and Mexico and South Korea who have never tasted my to- 
matoes, and who, if they had the foreign exchange, would love to 
import some of my produce. I might even expand into a few pepper 
plants. 

So, if you are still looking for a reason to support this amend- 
ment, think of a small enterpreneur of Italian-American parentage 
who would like to get into the export market someday, maybe even 
employ a few unemployed veterans if business picks up. 

Let us pass this amendment by unanimous consent. 

The housing authorization provisions of this amendment to the 
conference report on the supplemental have appeared very sudden- 
ly on this floor. But, as many of my colleagues are well aware, 
these proposed authorizations for housing and community develop- 
ment programs represent many months — in fact, many years — of 
effort and negotiation. 

It is a good compromise, one which has had the input of the: 
House and Senate Banking, Housing and Urban Affairs commit- 
tees, the House and Senate appropriations committees, the Depart- 



yGoot^le 



267 

ment of Housmg and Urban Development, the Farmers Home Ad- 
miniBtration, and the Office of Management and Budget. 

Some Members may wonder why there is such an urgent need 
for a housing authorization at this time. I would like to emphasize 
to my colleagues the fact that there has been no housing authoriza- 
tion enacted into law since 1980. No Member can persuasively 
argue that our Nation's economy has remained stable over the 
course of the past 3 years. Our changing economy has affected 
renters, homeowners, prospective homeowners, builders, develop- 
ers, realtors and every segment of the population. 

But, particularly for those who come to the Federal Government 
for housing £uid community development assistance, we need to 
bring our authorizations up to date to reflect the economic and 
social changes which have occurred in the past 3 years. 

I do not often find myself in the position of supporting authoriz- 
ing legislation on Ein appropriations bill. I have, however, found al- 
together too many occasions whereon the authorizing committees 
have failed to act in timely manners. 

The fact that we have had no new housing authorization since 
1980 has made the work of the appropriations committee most dif- 
ficult. We have, however, managed to continue funding those pro- 
gams which are authorized through regular, annual appropriations 
bills. 

The fiscal year 1984 appropriations bill for the Department of 
Housing and Urban Development and Independent agencies was 
enacted into law on July 12, 1983. I served as a manager on the 
conference committee, smd recommended new budget authority for 
fiscal year 1984 in the amount of $55.8 billion. Of this amount, $1.5 
billion was placed in a reserve fund, and made unavilable to the 
Department until January 1, 1984, pending enactment of a housing 
authorization bill in this session of the 98th Congress. 

Last week, in the act making further continuing appropriations 
for fiscal year 1984, the so-cfdled second continuing resolution, the 
Congress took further action on the disposition of this reserve. In 
the event that this bousing authorization is enacted, $1.5 billion 
will be made available to the Department of Housing and Urban 
Development on March 31, 1984, in accordance with the provisions 
of the second continuing resolution. 

The enactment of this supplemental conference report, as further 
amended by the Senate, will reauthorize many important housing 
and community development programs for 2 years. Community de- 
velopment block grant and urban development action grant pro- 
grams would be authorized for 3 years. 

Many authorizations for these programs were considered and ap- 
proved by the House on July 13, 1983, when we passed H.R. 1, the 
Housing and Urban Rural Recovery Act of 1983, Included among 
these are: 

Acljustments in the form of allowable deductions to the annual 
grOBB income formula for tenant rent contributions. 

A 3-year reauthorization for the CDBG and UDAG programs. 

The new construction component of the rental rehab and devet- 
(qimrat grants program. 



yGoot^le 



The elimination of the requirement that the HUD Secretary set 
the FHA maximum mortgage rate, thereby allowing this rate to be 
set more flexibly by the market. 

And several important Farmers Home Administration programs. 

The authorization for several other programs has been included 
in an effort to effect a compromise with the Senate and the admin- 
istration. These include: 

A voucher demonstration program for em initial contract term of 
5 years, establishing a limited 15,000-unit housing certiflcate pro- 
gram. 

Authorization for HUD to promulgate regulations establishing 
lease and grievance procedures for public housing in those areas 
where local eviction procedures do not require a judicial proceed- 
ing. 

FHA insurance to be provided for a number of new alternative 
mortage intruments, permitting HUD to offer insurance which is 
not presently available in the marketplace for the financing of 
single and multifamily housing. 

The level of budget authority contained within this amendment 
is essentially the same as the levels appropriated for HUD and the 
Farmers Home Administration in fiscal year 1984. 

HUD assisted housing programs including public housing, section 
8 existing and moderate rehab are funded within the $9.9 billion of 
budget authority contained in the fiscal year 1984 appropriation. 
Community development block grant and urban development 
action grants are also maintained at their appropriated levels of 
$3.5 billion and $440 million respectively. 

Public housing modernization and operating subsidy programs 
are not changed. These programs can be run in fiscal year 1984 
with available funds. Rural housing programs as administered by 
the Department of Agriculture would be authorized at levels appro- 
priated in the continuing resolution with the exception of an addi- 
tional authorization for rural housing grants in the amount of $100 
million. 

In this amendment, 1984 budget outlays would be authorized at a 
level which would be 2 percent above the fiscal year 1984 enacted 
appropriation levels for HUD and FmHA rural housing programs, 
liie increase of $300 million in authorized outlays is due to an in- 
crease in the number of allowable deductions to tenant income. 
The deductions would include: $480 per minor and handicapped 
person; $400 per elderly household; elderly household medical ex- 
penses in excess of 3 percent of income; and child care expenses. 

Such deductions would be used in the determination of tenant 
rent payments in HUD-subsidized housing programs. 

As is the case with any bill or amendment, there will always be 
Members who oppose certain of its provisions or the process by 
which it is considered. 

In this case, I ask my colleagues to consider the efforts which 
have been made on both sides of the aisle, and in both Chambers, 
to have an authorization enacted before we adjourn. Unfortunately, 
the only remaining vehicle for this legislation is the conference 
report to the supplemental. 



yGoot^le 



I am not proud of this method of l^islatiog. I believe in keeping 
onautborized projects and authorizing legislation off of appropria- 
tiiHis bills. 

But, in light of the agreements which have finally been reached 
on these issues, and the time pressures that we are under, I will 
npport this housing amendment, and the rule which provides for 
its adoption, and I ask my colleagues to do the same. 

D 1430 

Mr. CoNABLE. Mr. Speaker, will the gentleman yield? 

Mr. CoNTK. I yield to the gentleman from New York. 

Mr. CoNABLE. I thank the gentleman for yielding. 

Mr. Speaker, I support the rule, and I associate myself with the 
remarks the gentlem£ui from Massachusetts is likely to Taake and 
the fervor wiui which he is lik^y to make them. 

The Speaker pro tempore. Tlie Chair would inform the House 
that the gentleman from Louisiana (Mr. Long) has 21 minutes re- 
maining and the gentleman from Tennessee (Mr. Quillen) has 10 
minutes remaining. 

Mr. Long of Louisiana. Mr. Spettker, I yield 1 minute to the gen- 
tleman from Louisiana (Mr. Roemer). 

(Mr. Roemer asked and was given permission to revise and 
extend his remarks.) 

Mr. RoEHES. I thank the gentleman for yielding me this time. 

Mr. Speaker, what do Ralph Nader and Milton Friedman have in 
common? Opposition to the IMF bill. 

We should join in opposition to IMF because of what it does not 
do. It does not call for a new Bretton Woods meeting on monetary 
exchange rates; it does not regulate the big banks so eis to prevent 
a reoccurrence of this financial fiasco; it does not require the IMF 
to use its $44 billion in gold; and it does not force the IMF to em- 
phasize growth rather than the limitation of the international eco- 
nomic system. 

We should join in opposition to IMF because this bill eliminates 
a number of the reforms we placed in the original IMF bill that 
bare^ passed the House. 

lite following reforms have been eliminated: 

A requirement for prior congressional approval before the U.S. 
Executive Director commits the Congress to the next permanent in- 
crease in quotas. 

A provision preventing U.S. banks from collecting profits above 
what they could earn on domestic loans on the very loans requiring 
IMF assistance to pay back. 

A requirement that IMF salaries not exceed our current Federal 
a apl oyee executive IV level salaries of $67,200 a year and that 
IMF employee home loans at less than half the interest payments 
that average American taxpayers are currently paying be discon- 
tinued. 

A provision preventing U.S. banks from continuing to charge 
feeB due immediately for loan rescheduling far in excess of admin- 
istiBtive costs. 

A requirement that future payments to the IMF be made with 
greater portions of convertible currencies so that countries perpet- 



yGoot^le 



270 

ually receiving IMF loans will start financing more of the real 
costs. 

Do not be fooleri. Passage of this bill will cost Americeui jobs, will 
keep interest rates high, and will bail out the biggest, richest bank 
on Earth. 

Mr. Long of Louisiana. Mr. Speaker, I yield 1 minute to the gen- 
tleman from Ohio (Mr. Eckart). 

(Mr, Eckeirt asked and was given permission to revise and extend 
his remarks.) 

Mr. Eckart. I thank the gentleman for yielding me this time. 

I am indeed chagrined that the snout and ears of my friend from 
Massachusetts appear to have been replaced by turkey feathers. 

We ought to reject this Thanksgiving turkey that comes to us 
stuffed and gagged, filled with more giblet than goodies. 

Under the most unusual type of rule that my friend usually re- 
jects, because this turkey cannot stand the light of day, cannot 
stand to be seen in public, cannot stand to have its contents exam- 
ined because, like a good friend of mine once said, if you like sau- 
sage and laws, do not watch either one being made. 

Well, this is a lot of sausage and not very good law. It takes It^- 
rolling and turkey stuffing to a new height. 

This unusual rule defines gag rules in the newest way possible. 
Reject the rule, restore some sanity to the process. If you are a 
smEill businessman and your partner cannot get a loan, try to ex- 
plain to them why we gave $8.5 billion of taxpayers' dollars away 
to some of the richest banks in America. Reject the rule. 

Mr. Long of Louisiana. Mr. Speaker, I yield 1 minute to the gen- 
tleman from Michigan (Mr. Levin). 

(Mr. Levin of Michigan asked and was given permission to revise 
and extend his remarks.) 

Mr. Levin of Michigan. I thank the gentleman for jaelding me 
this time. 

Mr. SpeEiker, 1 come from a very hard hit State, economically, 
and that is why I favor this bill. 

First, we need the housing in it. Second, we are struggling to get 
back on our feet economically and so we have the greastest stake 
in avoiding a collapse of international economic system and IMF is 
a key in this. The proof is in the pudding. I suggest we look at re- 
sults. Mexico is now moving back on its feet. A hard but necessfiry 
bargain has been struck by the IMF with Brazil. 

This allegation of elitism is poppycock. A hardnosed judgement, I 
am sure, is that this bill is mainly necessa^ for the people of 
Michigan, not for the banks of Michigan, eaid I urge its support by 
everyone on this floor. 

Thank you very much. 

Mr. Long of Louisiana, Mr. Speaker, I yield 1 minute to the gen- 
tleman from New York (Mr. Schumer). 

(Mr. Schumer asked and was given permission to revise and 
extend his remarks.) 

Mr. Schumer. I thank the gentleman for yielding me this time. 

Mr. Speaker, I too rise in support of this bill for two reasons: 
First, it is a housing bill. It has in this bill for the first time a 
rented production prc^am, the so-called Dodd-Schumer program, 
part of the bill, which will flnedly build rental housing in our cities, 



yGoot^le 



271 

aa luburbs, and our rural areas. There are homeless in America. 
Ito are homeless because they do not have housing, 
une turn our backs on them, we cannot say we are doing some- 
thing for the liozneless. This is our last opportunity to do that, gen- 
demen. 
Many Members, when they think of federally subsidized housing, 
think of past prc^^ame like section 8 new construction, and get a 
lad taste in tfieir mouths. But the Dodd-Schumer program repre- 
Rots a dramatic break from previous housing programs. This pro- 
pam has received strict scrutiny in the 2V^ years since it was nrst 
introduced by Senator Chris Dodd of Connecticut and I, and it has 
emerged subetantially the same as we introduced it. The program 
recognizes that while the section 8 program produced some ex- 
btmely valuable housing units, it was also marred by fatal flaws, 
and tries to correct many of those mistakes. 

first, section 8 committed the Government to pay rental subsi- 
dies far into the future. Assistance under the Dodcf-Schumer pro- 
gram comes in the form of a one-shot, upfront subsidy to help 
reduce the project's debt service costs. 
Second, section 8 construction is extremely expensive, because it 
prorided a deep subsidy over a long term. Dodd-Schumer, by utiliz- 
ing a shallow subsidy up front, produces far more units for the 
same amount of money. For example, in this bill, we authorize 
(315 million over 2 yesirs, and expect that it will assist in the pro- 
duction of over 20,000 units, at least 4,000 of which will be set aside 
fci lower income families for 20 years. By contrast, if the same 
amount was invested in section 8 new construction units, we could 
produce, according to figures used by the Appropriations Commit- 
to, only 2,300 units. Thus, under Dodd-Schumer we will produce 
more lower income units. In addition, the nonlower income units 
added to the housing stock will put some slack into tight urban 
rental markets, which should alleviate some of the pressure driving 
up all rents, ■which hits lower income families the hardest. 

Third, under section 8, developers had every incentive to build 
units up to the maximum allowable cost, because HUD guaranteed 
their rental income. The Dodd-Schumer program contains incen- 
tives to minimize development costs by selecting projects according 
to competitive criteria, which heavily weight the degree to which 
private contributions and local governmental contributions to the 
prmect are maximized, and Federal contributions are minimized. 

Fourth, section 8 was distributed to areas of the country by a for- 
mula, which was designed to measure need, but which frequently 
ended up providing funds where they were not necessarily needed. 
Assistance under the Dodd-Schumer program is highly targeted. 
Only communities suffering from a severe shortage of rental hous- 
ing ¥rill be eligible for assistance, and those communities with the 
Dxet severe shortages will be favored in the competitive selection 
process. 

Uf^ Members here sire well acquainted with the highly success- 
fill UDAG profp'am, which is designed to develop public-private 
partnerships in economic development projects, with local govern- 
ments leamng the way and shaping their own strategy according to 
their priorities. The Dodd-Schumer program is best viewed as a 
UDAG for housing. 



yGoot^le 



272 

The second reason I am for this bill ia, that in the IMF portion of 
the bill safeguards have been added in the form of the amendment 
that I had introduced when the bill was tlrst considered. That 
amendment had lost on the floor, but had been restored to the bill. 
It tells the banks that they can no longer make excessive profits on 
their IMF loans profits that hurt both the economies of our country 
and of the later American borrowers. The langu£^e of the amend- 
ment limits the spreads that banks charge on their loans restores 
some balance of funds between the creditors, debtors, and the 
world economy. 

D 1440 

Mr. Long of Louisiana. Mr. Speaker, I yield 1 minute to the gen- 
tleman from Massachusetts (Mr. Frank). 

Mr. Frank. Mr. Speaker, I wish we had more time on this but 
we are improving. We have 50 percent more time to debate this 
today than we had for the Constitution on Tuesday, so we march 
toward democracy. 

This bill is not perfect in either regard— either for housing or the 
IMF. And it would be better if they could come up separately. But 
in these peculiar circumstances, this bill has to be t<^ther, al- 
though I usually do not like that procedure, to make the housing 
part veto proof It is the only way to help provide housing for the 
elderly and other needy people without a veto. It is an imperfect 
attempt to deal with IMF, but a satisfactory one. And it is an im- 
perfect housing bill, but it is definitely an advance with regard to 
housing. 

The IMF part does restrict the ability of the bainks to make prof- 
its off of their mistakes. The housing part does provide some relief 
to the poorest people in this country, the residents of public hous- 
ing who were unfairly, in my judgment, damaged some time ago. 

We do not get perfection in this great, sprawling, multicham- 
bered Government, but this bill does represent the best compro- 
mise we are going to get. Vote this down today and you will not 
have another IMF bill, and there will not be another housing bill. 
This represents the most we can get, given the forces at work here 
and at the White House. 

All sides have gone as far as they can and this is the result. 
Sometimes, compromise is essential if we are to govern fairly and 
effectively. 

On one specific point, Mr. Speaker, I would like to ask the distin- 
guished chairman of the Banking Committee the following ques- 
tions with respect to the Real Estate Settlement Procedure Act pro- 
visions contained in the legislation. Am I correct that the legisla- 
tion has been modified from the text of H.R. 1 with respect to dis- 
closures made to consumers and that the new language is baaed 
upon similar language found in the Tnith-in-Lending Act which 
provides a defense to allied violations of the disclosure require- 
ments? 

Mr. St Germain. The gentlemem is correct. 

Mr. Frank. Would the chairman agree that eilthough this lan- 
guage is based upon the Truth-in-Lending Act, it is not intended 



yGoot^le 



273 

thBt judiciRl or other interpretations of the defense contained in 
that act would nec^Barily be applicable under this legislation? 

Mr. 9r Gesmain. Yes, I would agree with that asseBsment. 

Mr. FsANK. Furthermore, would the chairman agree that since 
the discloBures which are to be made under this legislation are 
likely to be much simpler than those required under Uie Tnith-in- 
Leaddng Act, it is intended that the error avoidance procedures 
necessary to establish a valid defense to an alleged controlled busi- 
ness violation would also be simpler? 

Mr. St Germain. Once again, I would agree with the gentleman. 

Mr. Frank. Finally, would the chairman agree that it is intended 
under this legislation that error avoidance procedures be adopted 
which reflect the nature of customer dealings in the settlement 
services industry in which the referring party is engaged? 

Mr. St Gerbiain. That is correct. 

Mr. Frank. I thank the chairman for his clarification of the leg- 
islative intent of this provision. 

Mr. Quiu-EM. Mr. Speaker, I yield 2 minutes to the gentleman 
from South Carolina (Mr. Hartnett). 

Mr. Hastnett. I thank my colleague for yielding. 

Mr. Speaker, one of the most frustrating parts of being a 
Member of this body, I think, is seeing things that are wrong and 
being unable to correct those things. 

I tiiink it is terribly poor that once again we are faced with what 
is a gag rule. We are taking what is a necessary housing bill and 
tying on to it something that I do not think is good for the Ameri- 
can taxpayer. 

We are attempting to bail out the IMF when we are $1.2 trillion 
in debt and they are $20 billion in debt. How can this country and 
my colleagues on the other side of the aisle say they want to 
r^uce our deftcits when they brought a tax bill before us yester- 
day which would have, in effect, done that, and here today we are 
gomg to vote to give away $8 billion which the U.S. Treasury does 
not have and which will only add another $8 billion to our deficit. 

Mr. Speaker, this is improper. It is one of those things that is 
wrong and people like myself are unable to correct. But I would 
use my colleagues on both sides of the aisle not to vote for this 
rule. 

You have heard here this afternoon that this is the only housing 
IhU we will ever get. I do not understand why the tremendous lead- 
ership on the other side of the aisle could not bring before us what 
I woi^d call a clean housing bill when we return in late January or 
early February. 

Th^ are uang it as a blackmail to get our votes for the IMF, to 
get 8 Dillion dollars' worth of tax dollars that the Treasury does 
not have and which will add $8 billion more to our deficit. 

I urge my colleagues on both sides of the aisle to vote against 
this rule and I yield back whatever time I have remaining. 

Bfr. Long of Louisiana. I yield 2 minutes to the distinguished 
gentleman from Maryland (Mr. Long). 

(Mr. Long of Maryland asked and was given permission to revise 
and eactend his remarks.) 

Mr. Long of Maryland. Mr. Speaker, this is a gag rule of the 
worst order, with hundreds of pages of amendments which have 



yGoot^le 



274 

been almost impossible to get copies of and, an amendment which 
includes $25 billion for IMF and housing. 

Let me tell you, Mr, Speaker. As chairman of the subcommittee 
that deals with the IMF issue, I have been given 2 minutes to 
speak, and that is part of the gag rule. 

Three or four years ago President Reagan promised if elected to 
stop deficits by 1984, even by 1983. What has happened? 

In 1983 alone there is a deficit of $195 billion, which equals the 
deHcits of all 4 years of the Carter administration. This deficit will 
grow to $208 billion in 1984 even without this amendment. 

Nobody can deny that they are going to have to borrow $8.5 bil- 
lion to give to the IMF if this amendment passes. Why should we 
increase the deficit in this manner? The IMF has 20 times as much 
gold, per billion dollars of debt as the United States. Yet the 
United States is being asked to borrow or print money to bail out 
the IMF. 

Why? They have plenty of money to deal with their present prob- 
lems. What they are planning to do is bail out the big banks that 
loaned $350 billion to foreign countries. Many of these have na- 
tions close to default and most have in one way or another indicat- 
ed that they cannot possibly pay it back. And, we know from histo- 
ry they will not pay it back. 

I am not one to look under the bed for Communists. The adminis- 
tration has stretched the Communist threat in many places where 
that threat is only tenuous. But, if communism is a uireat, why are 
we proposing to bail out Communist economies so that they can 
concentrate on their military buildup? 

Certainly we ought not to do it when we are asking American 
boys to fight and die against communism. 

Like it or not this will be an issue in the next election. Make no 
mistake, IMF is an economic Lebanon or Vietnam. The deeper we 
get, the further in we are going to have to get, and the more diffi- 
cult it is going to be to withdraw. 

Vote "no" on this bank bailout package. It is a vote you will 
never have to explain. 

Mr. Long of Louisiana. Mr. Speaker, I yield 1 minute to the gen- 
tleman from North Dakota (Mr, Dot^an). 

(Mr. Dorgan asked and was given permission to revise and 
extend his remarks.) 

Mr. Dorgan. Mr. Sj>eaker, the question is why this procedure? 
Why the time limit? 

I think the procedure and time limit are necessary because this 
bill cannot be defended or explained in an afternoon. If we had 
more time to talk about this we would talk about the things that 
have been said by the gentlemen that preceded me. 

They said there are safeguards in this bill. That is absolute non- 
sense. They are toothless tigers. There are no safeguards in this 
bill. 

This bill has been stripped of the safeguards. The safeguards are 
gone, and that is why we ought to vote against this rule. 

The only way they could get this bill passed is to sweeten it with 
housing, and that talks about the merits of the legislation. 

People say this is not a bailout of the big banks. Of course it is a 
bailout to the big banks. What do you think it is? If you do not 



yGoot^le 



275 

want to call it a bailout, call it a cave-in, caving in to the big banks 
fiH' S8.5 billion, a bill that is going to be footed by the taxpayers in 
diis country, and on the final legislative day of the session when 
we have a $197 billion Federal deficit. 

Some say you need to see the higher truth. I see the higher 
truth. The truth is we ought to do things the right way and this is 
the wrong way, and I say you ought to vote against the rule. 

Mr. Long of Liouisiana. I yield 2 minutes to the gentleman from 
Wisconsin (Mr. Obey). 

Hr. Obey. Mr. Speaker, I know that my chairman, Mr. Long, 
does not like the fact that our subcommittee is bypassed on this 
matter and I do not, either. 

I joined him in opposing the President on Lebftnon and in oppos- 
ing the President's policy in El Salvador. But on this one the Presi- 
dent is right. I do not happen to agree with Ronald Reagan's eco- 
nomic approach to life. I do not happen to agree with what I see as 
his favoritism to big business or his favoritism to the wealthy. 

I do not even like a lot of the parts of this bill. 

But the fact is that in this instance the President is simply 
trying to keep the economic system of the world afloat and we owe 
hun our support. 

The idea that some people seem to have, including the hard 
rightwing, that somehow the President is going to lavish loans on 
Communist countires is, frankly, so much baloney. If some groups 
really feel that the President is not sufficiently anti-Communist to 
be trusted with maximum authority to decide which loans are in 
our national interest and which loans are not, then I would simply 
niggest to you that is not the Ronald Reeigan I know. 

You bet this bill is not perfect. There are part of this bill that I 
would like to vote against, but the fact is that people ought to quit 
blaming the President and quit blaming the Ckingress for the fact 
that the world is complicated and sometimes you have to do some 
things that are not perfect. 

1 have opposed the President on many things. But I will support 
him on this one because the stakes are simply too high if we do 
not. The stability of the world's economic system is at stake, and 
the security of our own economic recovery is at stake. 

If we fail to support him on this issue today we risk both of those 
things, and I do not think we can afford to do it. 

I also ask you to remember we Americans started the IMF. It is 
the United States and Great Britain who have drawn on it more 
greatly than any other country. The Soviets do not even like the 
IMF. They think it is too capitalistic for their own good. 

I ask you to support the President on this today and I ask you to 
¥ote yes today. A vote yes will help to stabilize the world economic 
system, strengthen U.S. export opportunities and build some 
hmiaes for Americans. 

Mr. Long of Louisiana. Mr. Speaker, I yield 1 minute to the gen- 
tlewoman from Ohio (Mr. Dakar). 

(Ms. Dakar asked and v/as given permission to revise and extend 
herremarbi.) 



yGoot^le 



D 1450 

Ms. Oakar. I thank the chairman for yielding. I would like to 
rise in support of the rule. 

Mr. Speaker, I yield briefly to my friend (Mr. Marriott). 

Mr. Marriott. I thank the gentlewoman for yielding. 

Mr. Speaker, I will ask if the gentlewoman would clarify some 
things on section 409. 

Am I correct in that the terms "construction" and "operation" as 
used there in section 409 include the word "expansion"? 

Ms. Oakar. That is correct. As the original sponsor of the foreign 
loan evaluation section which included the words "construction or ■ 
operation" it is the intent that loans in excess of $20 million at ex- '• 
isting facilities be interpreted as loans for construction of opeiv '■ 
ation. ' 

Mr. Marriott. Also in terms of the word subsidy, I assume that | 
the phrase is intended to cover all material or significant subsidies | 
that may be provided by a foreign government even though it is j 
not specifically mentioned. '■ 

Ms. Oakar. Yes. I thank the gentleman for his question. Let me | 
reclaim my time and say that international agreements do include i 
material subsidies. I appreciate the gentleman's concern for the : 
economic distress our industries are facing and his support for this 
measure. ■ 

I was very pleased with my chairmein for preserving that section. > 
If we get another IMF bill, I guarantee it will not have this section < 
in and our industries will not be protected. 

So I hope you will support the bill. 

The Speaker pro tempore. The Chair will observe that at this ■ 
point the gentleman from Louisiana (Mr. Long) has 10 minutes re- ■ 
meiining and the gentleman from Tennessee (Mr. Quillen) heis 8 
minutes remaining. 

Mr. Quillen. Mr. Speaker, I yield 2 minutes to the gentleman 
from California (Mr. Dannemeyer). 

(Mr. Dannemeyer asked and was given permission to revise and 
extend his remarks.) 

Mr. Dannemeyer. I thank the gentleman from Tennessee. 

Mr. Speaker, I rise in opposition to this rule, most particularly to 
the inclusion of the IMP funding or the bank bailout provision of 
the bill. 

For a person in my posture I think it is appropriate to ask: Well, 
what if it goes down? What then? How will the IMF meet, truly, 
the international crisis, the monetary crisis that is facing our 
world? That is a fair question. 

We should understand that the IMF today has $44 billion in gold, 
current value, in its coffers. 

At one of the hearings, the head of the IMF was asked by a 
Member of Congress: "Mr, Chairman, under what circumstancea 
would you use the gold to bail yourself out of this problem?" And 
his response was, "Well, in case of an emergency we would use that 
gold." 

Well, now if this is not an emergency, I suggest that the IMF 
people do not know how to define it because if they are truly in a 



yGoot^le 



277 

mna th^y should use that resource rather than to come to ub to 
bail them out. 

Ihis problem with the IMF is not the cause, it is a symptom, the 
lymptoin of an underlying fiscal and monetary discord that exists 
in uie whole world. And when this IMF bill came up earlier I 
■night to attach an amendment to the IMF bailout that would con- 
dition the U.S. contribution on the United States declaring a fixed 
relationship between the dollar and gold by January 1, 1985, be- 
cause only by getting honest money in the United States, a doUar 
backed by something solid such aa gold which h£is proved histori- 
cally the way to rein in runaway politicians in our world, until we 
get that honest money we are not going to solve the international 
monetary crisis. I was denied that opportunity on a point of order. 
We need a full debate in this House on the problem of paper 
money, which is at the root of our problems. 

Mr. Kemp. Mr. Speaker, will the gentleman yield? 

Mr. Daknbmeyer. I yield to my colleague from New York. 

(Mr. Kemp asked and w£is given permission to revise and extend 
his reniarks.) 

Mr. Kemp. I thank my friend for yielding. 

Mr. Speaker, 1 rise to agree with the gentleman from California 
and to speak against the rule and the bill. 

A few moments ago, my friend the gentleman from Massachu- 
setts, quoted President Reagan's statement that this International 
Monetary Fund bill is the linchpin of the international monetary 
Bystem. Regretfully, I must disagree, for as Aristotle put it so well, 
"Plato is dear to me but the truth is dearer." The President is dear 
to me but the truth is dearer, and the truth is that there is no 
international monetary system and that is the problem with the 
niF today. 

There is no international monetary system for which the IMF or 
any other body may act as linchpin. Since we abandoned the funda- 
mentals on which the Bretton Woods agreement was based we 
have destabilized all phases of international trade and finance and 
the floating rate sjmtem is causing international economic contrac- 
tion, austrity, and unemployment. 

To understond the true situation, I ask my colleagues and our 
President to remember the words of another great President, John 
P. Kennedy, who said, "We shall continue jwlicies designed to stim- 
ulate growth here at home — the well-being of all free peoples is in- 
extricably entwined with the progress achieved by our own people. 
I want to make it perfectly clear that this Nation will maintain the 
dollar as good as gold * * * the foundation stone of the world's 
trade and payment system." 

Bfr. Speaker, this is the potential linchpin for a monetary system 
i^Hiilt on the principles of stable exchange rates, free movement of 
otpital, restoration of a liberal trading order and a new Bretton 
Woods type system with an international unit of account "as good 
Mgold.'' 

1 do not oppose this bill out of isolationism but out of my belief 
that a systemic chan^ is cedled for in international and domestic 
mmetary policy of this bill as I want te explain, will compound not 
cure our difficulties. 



yGoot^le 



278 

I want to briefly address the substance of the compromise which 
has caused such division in this House and to point out a few of the 
reasons why the authors of this compromise, a compromise com- 
pleted far from public view and without consultation with the mi- 
nority in this body, refuse to allow the close scrutiny which would 
normally be applied. 

When the IMF quota increase was first before us, I opposed it as 
an inappropriate response to a serious International monetary 
problem. Nothing has changed to alter that opposition. 

The monetary problems we face are not limited to a handful o£ 
developing and Eastern bloc nations. They extend throughout the 
monetary system and are endemic to it. Under the current regime, 
money is a hodgepodge of paper currencies crawling, sinking or : 
floating against other currencies, baskets of currencies or constant- ; 
\y fluctuating, abstract, trade-weighted averages. Even nominally i 
fixed currencies are pummeled by the actions of central bankers; ' 
they control the reserve currencies with no standard by which to 
measure actions or anticipate them until the relationship of mone- 
tary and real values forces a devaluation. 

Without a monetary standard, credit markets become agents of 
damage control rather than allocators of resources. Protectionist 
pleas are in large part reactions to these constantly shifting cui^ 
rency values. 

Therefore, Mr. Speaker, a precipitous move to expand the re- 
sources of the IMF without addressing the system's underlying 
weaknesses will simply worsen the hemorrhage as current borrow- 
ing is diverted to interest payments on old debt. Potentially produc- 
tive resources will be transferred by political fiat to those bank- 
rupted by the lack of monetary standards. Rather than providing 
assistance to developing nations we will just be postponing inevita- 
ble policy adjustments. 

Let us look for a minute at what would happen without IMF 
quota increase. 

First, as has been pointed out by Fred Smith of the Council for a 
Competitive Economy, the IMF does not require funding to act as 
financial arbitrator between the private banks and the debtor na- 
tions. It can easily take the role of Moody's or Standfird & Poor, 
providing guidance and evaluations. 

Second, the banks continue to have the same incentives to re- 
structure loans and avoid defaults whether the IMF has additional 
lending authority or not. Working through the Bank for Interna- 
tional Settlements, the Paris Club and through their own individ- 
ued channels, the international banks will continue to seek solu- 
tions to the problems they share with the debtors. 

It should also be remembered that our Government is not impo- 
tent to act if some of these efforts fall short. The Federal Reserve 
System stands ready to assist as it did in Mexico by making addi- 
tional exchange available in support of the banking system. The 
Exchange Stabilization Fund at Treasury is similarly available to 
help those who are in real danger. 

I am sure that supiwrters of the legislation will respond that this 
is too much for us to do alone, that we must leverage other nations 
to support our efforts emd that we can only do that through the 
IMF. To this I say, nonsense. Other nations do have the same in- 



yGoot^le 



279 

we have to seek solutions. These are not dependent on the 
DIF any more than the incentives of the banks are dependent on 
ootaide forces. Moreover, we should keep in mind that the only 
usable resources which flow into the IMF or any international in- 
ititution are those of the industrialized nations, basically the G-10. 
There is not a member of this group which would fail to support its 
trading partners in an effort to maintain trade relationships and 
aroid crisis. 

I believe that these mechanisms wilt forestall any panics, failures 
or crises. But, for the sake of debate, let us ask the question, "What 
would happen in the event of a default by a major debtor?" 

The dire warnings from Treasur>' indicate that U.S. banks would 
bil, that a m^or deflation would occur and that interest rates 
would skyrocket. Where is the truth? 

To begin with, a major default, or even writing off the bad loans 
being held by some banks, will indeed cause problems for those 
banks. Their stockholders will probably lose money. But that is the 
risk which they accepted in making capital available for adventur- 
ous foreign lending. It is not the responsibility of the taxpayer. 

We should keep in mind that it is the stockholders who are at 
risk, not the depositors. The Federal Deposit Insurance Corporation 
stands ready to protect depositors. Ever, if this requires additional 
funding, it results in the economic damage being placed on the ap- 
propriate risk takers. 

Just as the FDIC protects depositors, the Federal Reser^-e S>'stem 
has the authority to prevent any spread of defaults or a deflation. 
If bank assets are wiped out by default to such a degree that the 
banking system itself is endangered, the Fed can step in with addi- 
tional reserves in an amount identical to the Ic^t assets. This injec- 
tion of reser\'es would protect the systein without bailing out irre- 
qxKisible bankers. Moreover, since the Fed can replace the exact 
amount of assets lost, there is no domestic denationar>- or inflation- 
air impact. 

The notion that interest rates would rise is simply a ruse. The 
Ominnan of the Federal Resen-e Board scored the Congress re- 
omtly for high deficits, increased borrowing and the pressures 
these bring on interest rates. He now Tells us '.ha: if we do not 
borrow additional funds for the IMF rates wiH rise. I have been 
b^d by some supporters of this :e^laT;or. tha: :-r.ding the IMF 
will not cause rates to fall but r.ct fMr.iir.g :'. ■*':'.] ca'JS* the.T^ to 
rise. What logic is this? 

Interest rates in international lending are se*.. as those for do- 
mestic lending, based on risk of ir.fiatior. ->r def.aTlon and the qual- 
ity of the investments undertaker. The or.ly possib'.e incresise ir. 
rates if we do not fund the IMF w-ill t* cue :'. "akir-e banks r^ 
qnnsible for their risks, that is. ;: the bh-.k^r: pe.-:*:;-.^ :ha: a Oov- 
enunent guarantee of their losr-s has beer. ■*-.:'r.'ira-f.-r. \\ .-,&•_ effw. 
would this have domestically? It is ver;.- siir.p.t: iXrr.trs-.ic !trr.c:.-.g 
opportunities — ungtiaranteed loans for h-v.is«. =u:o.T.-jr.<:l«. ■:o.!e^e 
cdiK^icHis and small busine^es — "kzI'. riove -p '.r.h ..='. ■/. dfrsi-'an!': 
liAs as the Government rjbsidy to foreier. >.'.d:r.B .■■. r'z~j/-h^ 

As I have shown alxn-e. the F« :^r. :or«*.all hr.-> i.'.f.stior.ar;.- or 
deflatiaDary effects of defaults, so ther^ is r.o ■yT'^.'-iiTh -...•■. ir.te.'ett 
rates fnxn that sounx. 



yGoot^le 



280 

The only pressure for increased interest rates comes from the de- 
termined position of Federal Reserve Board Chairman Paul 
Volcker to join with the IMF in a program of stifling austerity. 

When we debated the IMF Quota increase in July, I made the fol- 
lowing statement: 

My question is that the Federal Reserve Board in the last three months has 
raised the federal funds rate from S.2 to 9.4 percent. They are raising interest rates 
right now. and the gentleman suggests that by spending more abroad we can lower 
interest rates in the United States. The gentleman should be directing his att<?ntion 
at Paul Volcker and the Federal Reserve Board to bring down those interest rates 
because that would do more for Mexico and Brazil than the so-called quota increase 
for the IMF. 

Since I made that statement, the situation has only worsened. 
The growth of the money supply as measured by the Fed's revered 
Ml has slowed dramatically in the second half of the year. It has 
risen at an economically crippling rate of 1.1 percent over the last 
3 months, leaving growth for the Fed's main monetaiy target at or 
below the bottom of its target range. The results are clear. 

Interest rates continue to move upward. The dollar remains 
strong with even the Soviet Union joining in the rush to the dollar 
by selling major shares of its holdings of German marks and 
buying dollars. Key commodity spot and futures prices remain at 
or below the deflated values prevalent at the beginning of the year 
while key measures of inflation show stable prices for both con- 
sumer and producer goods despite the strong recovery. 

The most telling result of all, Mr. Speaker, is that unemploy- 
ment, while falling, remains far above normal and at levels far too 
high. 

Adding to the burden already being carried by American workers 
by shifting resources from productive activities to support austerity 
and incentive-destroying fiscal policy changes in developing nations 
will not change this situation. Only the actions of the Federal Re- 
serve Board in reversing its policies will provide the respite in do- 
mestic and international financial markets required for movement 
toward reestablishment of a monetary standard and the economic 
growth and stability which would emerge. 

But what do we see instead? The Fed, not content to support the 
austerity preached by the IMF, has taken to the domestic pulpit. 
While staunchly maintaining its all of independence of the Con- 
gress and the President when it comes to monetary matters, the 
Fed, through Chairman Volcker, is attempting to tfdce an increas- 
ing role in the setting of fiscal policy. While obstinately continuing 
the policy of unreasonably high interest rates, Mr. Volcker has un- 
dertaken to try to influence fiscal policy in closed meetings with 
Members of the Congress. According to reports in the press and 
from the Senate, the offer before us is slight monetary ease and 
slightly lower interest rates in return for a fiscal policy of higher 
taxes which is to the liking of the Fed Chairman. 

Mr. Speaker, I find this intervention in the duties of the Con- 
gress by a body which considers itself beyond our control and 
which has steadfastly refused to enter a dialt^ with us on mone- 
tary policy to be intolerable. 

This is the same tactic used by the IMF. The IMF does not 
impose austerity in the strictest sense of the word. What happens 



yGoot^le 



281 

is that thcgr go into a country with their team of economists and 
work with the finance minister, or the chancellor of the exchequer, 
and they end up saying, "In exchange for the help we are going to 
pve you, you have got to impose budget austerity as the means of 
correcting your current account imbalance." 

As I have often stated before, the austerity being practiced in the 
world today is to raise consumption taxes on the poor, to raise 
taxes on savings and investment and channel these resources into 
the central government. Credit is then allocated through the na- 
tional policy board or the development bank or whatever govern- 
ment agency has been established to make political decisions on 
the allocations of credit. 

The parallels of the actions of the international monetary body 
and our own Fed are exact. Fortunately for American taxpayers 
the Congress rejects this approach. Yesterday, by defeating the rule 
on the Ways and Means Committee tax bill we killed the issue of 
tax increases for this year. 

Just as we have rejected the misguided policy of incentive-de- 
stroying tax increases and austerity for our constituents, we should 
reject the imposition of those policies on the poor of developing na- 
tions by the IMF and its allies in the Fed. 

I ur^e my colleagues to join me in voting no on this legislation 
and send an unmistakable signal to those who would stymie the 
pace of global economic growth which is just now b^inning and is 
more threatened by the Federal Reserve Board and IMF econo- 
mists than any other cause. 

Mr. Long of Louisiana. Mr. Speaker, I yield 2 minutes to the 
gentleman from North Carolina (Mr. Neal). 

(Mr. Neal asked and was given permission to revise and extend 
his remarks.) 

Mr. Neal. Mr. Speaker, the world financial crisis is still with us, 
and far from being resolved, even though it has been somewhat 
contained through the cooperative efforts of the large industrial 
countries and the debt-burdened developing countries. 

Mr. Speaker, the IMF desperately needs additional funds to help 
debtor countries weather the recession and get their finances in 
order. At stake here is the survival of the world trading and finan- 
cial systems, from which the United States benefits perhaps more 
than any other country. This IMF bill is really about jobs and a 
future for many of our people. 

Mr. Speaker, despite months of delay, the IMF and most of the 
bee world nations are counting on the United States to come 
through with its share of the increase in IMF lendable funds. 
When we do, the other 145 member nations will continue to follow 
our lead. 

It is fortunate that the IMF exists, because we have no other ve- 
hide to provide the discipline and the coordination needed to re- 
Jolve the drfrt problem. Every U.S. President from Franklin Roose- 
Tclt through Ronald Reagan has recognized the importance of the 
lUF and given it full support. In recent years, the IMF has rescued 
(heat Britian, Turkey, Portugal, and other countries from econom- 
ic calamity, and today dozens of developing countries are depend- 
ing on it for temporary assistance and advice in the worst world- 
wide recession since the Great Depression. 



yGoot^le 



Mr. Speaker, even though the IMF has a remarkable record of 
success, its work and mission are poorly understood. Let us correct 
some of the common misperceptions about the IMF: 

The IMF does not bail out banks. IMF loans are a small percent- 
age of a country's debt. For example, Mexico owes nearly $90 bil- 
lion, but is borrowing from the IMF $3.5 billion spread over 3 
years. Mexico could not even begin to pay the interest on its debt 
with less than $1.2 billion a year from the IMF. Furthermore, the 
IMF's total resources — even with the proposed increase — Jire but a 
small fraction of the $700 billion of Third World debt. Banks and 
everyone else benefit primarily from the IMF-approved economic 
reform plans required of borrowing countries. IMF programs ioi- 
prove debtor countries' financial stability and make them better 
credit risks. This helps assure a more stable international trade en- 
vironment from which we all benefit. 

The IMF does not create austerity conditions in borrowing coun- 
tries. Countries seeking IMF loans already are in such desperate 
circumstances that austerity is inevitable. With the help of IMF 
loans and advice, countries can institute belt-tightening measures 
with as little pain and disruption as possible. Countries with IMP 
programs usually attract private capital and keep their economies 
working toward recovery. Without the IMF, some countries would 
face bankruptcy and collapse; in that event, the austerity required 
would be much worse. 

Our IMF participation is not a contribution or a giveaway, nor is 
it foreign aid. It constitutes a loan, on which we earn interest at 
near-market rates. Our only cost is the difference between the in- 
terest the IMF pays us and our Government's cost of borrowing the 
funds we invest. Over the years, the cost has been nominal. In 
some years, we have actually made money on our IMF investment. 
The IMF is like a big credit union: Members deposit money emd 
members — if qualified and in need — may borrow. Our deposits are 
safe. No country has ever defaulted on an IMF loan. 

Few Communist countries are IMF members. Of the Extern 
bloc, only Hungary, Romania, and Yugoslavia have current IMF 
programs, and their borrowings are a small percentage of total 
IMF lending. These three countries, as you know, are more market- 
oriented than other Communist nations, and we have always tried 
to encourage their departures from the Soviet line. Most Commu- 
nist nations shun the IMF because it requires free market solutions 
to economic problems. Nothing would please the Soviet Union more 
than to see the IMF run out of funds and become ineffective. From 
the U.S. perspective, consider the [wUtical dangers of a Third 
World bankrupt, in turmoil and ripe for takeovers, 

Mr. Speaker, after months and months of hearings, debates, 
amendments, and votes on the proposed increase in the U.S. quota 
in the International Monetary Fund, it is time for us to approve it. 

Mr. Speaker, while the IMF quota increase is at the heart of this 
package, the package also contains quite a bit of additional legi^- 
tion on important issues which have not commanded all the atten- 
tion they deserve. Due to the extraordinary circumstances out of 
which this bill has evolved, there has been little legislative history 
clarifying some of these matters. 



yGoot^le 



In this package, we have essentially accepted the Senate's ver- 
nm of tha Export-Import Bank's competitiveness mandate. This 
language requires that Exim should be fully competitive in all its 
nogiBins, but it should also ti^, to the extent possible, to honor its 
longBtanding tradition as a self-sustaining financial institution. The 
Sraiate language speaks of being "fully competitive," and not per- 
mitting a concern with the Bank's own cost to impair this primary 
function. But the language also makes clear that being fully com- 
petitive does not require an exact matching of the rates and terms 
(flered by foreign governments. Moreover, the Bank will hence- 
forth be required, by this legislation, to report to the Congress any 
cumulative losses which result in wiping out half its capital, at 
which point the Congress would "take appropriate action." Obvi- 
ously this language establishes a clear congressional concern that 
E^Kim's losses not oe excessive. I could well imagine that the quick- 
est way for Exim to impair its primary function would be to run up 
loBses so heavy that Congress and the American people would no 
loiter support what has historically been one of the most effective 
and efficient and valuable of all Government programs. 

Mr. Speaker, this legislation also mandates the establishment of 
a medium-term financing program within the Export-Import Bank. 
While the language in the bill concerning this may make it appear 
to be an entitlement program, it is clear from a reading of the 
entire section that medium term financing need be offered only on 
whatever terms are necessary to be fully competitive. The language 
does not automatically require such financing to be offered, even if 
genuine foreign competition at the stipulated interest rates can be 
documented. Exim still has to allocate its resources among all 
claimants, and this language does not create any privileged posi- 
tion for any class of claimants. In other words, it does not preclude 
Exim's Board from exercising its independent judgment as to how 
its budget resources can be most efficiently utilized to promote U.S. 
exports as such. 

Finally, Mr. Speaker, I would like to notice one of the striking 
innovations contained in this l^islation: The establishment of tied 
aid credit prt^ams in the Eximbank and in the Agency for Inter- 
national Development. The National Advisory Council on Interna- 
tional Monetary and Financial Policies is designated to coordinate 
these programs, and will be able to effectively control their use. I 
think this clearly indicates a congressional desire to rationalize the 
granting of tied aid credits within a coherent government-wide pro- 
gram, so that independent agencies can no longer operate on their 
own in this highly sensitive and expensive form of quasi-aid, quasi- 
export financing. Moreover, the purjwse of the whole scheme, as 
d^rly spelled out in the legislation, is to support our negotiating 
dforts to reduce and control the worldwide practice of granting 
tied aid credits. The exact mechanics of the programs — what terms 
to offer, what sales to target — should be determined in light of our 
negotiatii]^ objectives. To offer credit substantially as competitive 
as that ofierea by foreign governments, as required by this act, is 
■imply a restatement of Exim's competitiveness mandate, this is, to 
offer fully competitive fmancing. As 1 have already mentioned, that 
mandate does not require an exact matching of rates and terms. 
Hence, neither does the tied aid credit program. 



37-922 - 84 - 



yGoot^le 



Mr. Speaker, with these clarifications, I think the entire Export- 
Import Bank reauthorization package is a workable and worth- 
while compromise. I must reemphasize however that it was a com- 
promise hammered out in haste, and subordinated to the overrid- 
ing neccessity of completing action on the IMF quota increase. The 
result, though workable, is far from optimal. Vigilant oversight of 
Exim programs and policies will be required over the next 3 years, 

Mr. Speaker, approval of this rule will authorize our continued 
support of the IMF and the Eximbank and I urge its adoption. 

Mr. QuiLLEN. Mr. Speaker, I yield 3 minutes to the gentleman 
from Minnesota (Mr. Frenzel). 

(Mr. Frenzel asked and was given permission to revise and 
extend his remarks.) 

Mr. Frenzel. Mr. Speaker, I WEint to associate myself with what 
I think are the very thoughtful and compelling remarks of the gen- 
tleman from North Carolina. 

Mr. Speaker, there is not much controversy over this bill with 
the exception of the IMF portion, and unfortunately that appears 
to be hip deep in controversy. 

I would like to say to those in this body who are interested in 
exports and the opportunity to advance American employment op- 
portunities through exports, that there is no more im[>ortant 
export hill that this House will vote on this year. 

There is no other way to ensure the short-term growth of Ameri- 
can markets abroad quite as effectively as through the passage of 
this particular bill. 

So for those who are interested in export jobs, I say that I hope 
you will help pass this bill. 

There has been a lot of talk about who this bill is going to help. 
It is going to help everybody. It will help us and other countries 
around the world whose continued financial health is enormously 
important to us and to the jobholders of this country. 

Yes, if it is successful, it is going to help some banks, too. 

But if this bill does not work we will spend a good deal more, 
propping up the banks of this country, than 58.5 billion. 

Let us suppose that Mexico goes broke. That financial distress 
will be accompanied by shrinking food supplies and higher prices 
and soon our security interests will be involved. 

I assure you that our ultimate cost would vastly exceed the $8.5 
billion which is put in this bill. 

The decision comes simply down to this: Either we can pay $8.5 
billion today and hope to help world recovery, or we can deny this 
bill and then later be forced to pay a good deal more for both secu- 
rity and economic interests. 

1 believe the first choice, passage of this IMF bill, is the right 
one. I hope it will be swiftly passed. 

Mr. Long of Louisiana. Mr. Speaker, I yield 1 minute to the gen- 
tleman from Connecticut (Mr. Morrison). 

(Mr. Morrison of Connecticut asked and was given permission to 
revise and extend his remarks.) 



yGoot^le 



D 1500 

Mr. MOBSISON of Connecticut. Mr. Speaker, I rise in support of 
this rule. We need to pass it for two reasons. 

F^rst, the United States has not had a housing authorization pro- 
gram in force for the past 3 years. Enactment of this rule will in- 
corporate into the supplemental appropriation bill comprehensive 
housing legislation that will make a substantial contribution to the 
production of new housing and to the renovation of existing houB- 
insunits- 

The bill improves the targeting of the community development 
block grant program so that those funds will go to the benefit of 
low- and moderate-income people. The bill also expands the section 
235 home-ovmership pn^am from single-feunily to two- and three- 
family homes based on an eunendment I offered when H.R. 1 was 
considered in the House. 

Finally, the housing provisions will significantly reduce the rents 
paid by individuals living in publicly operated or subsidized hous- 
ing units by allowing tenants deductions from income before apply- 
ing the 30-percent rent-to-income formula. If this rule is adopted, 
tenants will be entitled to deductions of $480 per child, $400 per 
handicapped or elderly household, child care expenses and medical 
I in excess of 3 percent of income for elderly and handi- 



capped persons. 

T^ese are substantial improvements for which we can be justly 
proud. 

Second, passage of the rule will result in a needed funding in- 
crease for the ^temational Monetary Fund. In truth, the provi- 
sions restricting the authority of the U.S. representative to the 
IMF are not all that they should be. 

But the message being sent by this bill is still clear. The IMF 
must change its approach by moving to streteh out short-term 
loans at lower rates of interest and by adopting a more growth-ori- 
ented approach to the Third World countries. 

I want to thank and to commend the chairman of the Committee 
on Banking, Fintuice Euid Urban Affairs, Fernand J. St Germtun, 
who conceived the strategy of linking the housing and IMF provi- 
sions of this bill to insure their enactment. 

It is no secret that the White House had no interest in the Demo- 
crats' housing prt^am. Mr. St Germain found a way to spark their 
interest and for that we are all in his debt. 

I urge my coUeetgues to pass this important rule. 

Mr. Long of Louisiana. Mr. Speaker, I yield 2 minutes to the 
gentleman from Massachusetts (Mr. Boland). 

(Mr. Boland etsked and was given permission to revise and extend 
his remarks.) 

Mr. Boland. Mr. Speaker, I support the rule and I support the 
lemslative proposids embraced by the rule. 

Mr. Speaker, I know that many of the Members here are con- 
cerned with the procedure being used to pass these substantial 
pieces of legislation. I share that concern — but I believe that if we 
are going to be successful in getting a housing authorization bill 
enacted — we need to support the elements of the Gfum amendment. 
That amendment includes the housing authorization bill — the 



yGoot^le 



Internationa] Development Banks authorization — the IMF authori- 
zation and appropriation — the Export-Import Bank authorization — 
and the Defense Production Act extension. 

Let me take just a moment to discuss one element of the pack- 
age, the housing authorization bill. Fundamentally, it has author- 
ized the amounts already appropriated for existing HUD programs. 
These programs include such activities as urban development 
action grants, community development block grants, public hous- 
ing, section 8 existing and moderate rehabilitation, urban home- 
steading, section 202 housing for the elderly or handicapped, and 
operating subsidies. The housing bill simply reflects the amounts 
already appropriated for these programs. 

There are sdso a number of new prc^ams in this authorization 
bill. These include the neighborhood development demonstration 
program, a voucher demonstration program, a new emergency shel- 
ter program, a public housing child care demonstration prc^ram, 
additional authorization for section 235 homeownership assistance, 
and a m^or new rental housing rehabilitation and production pro- 
gram. 

As has been stated here before, and I know the gentlemem from 
Rhode Island is familiar with this fact, what the Appropriations 
Committee did when the 1984 appropriation v/aa enacted v/as to set 
aside $1.5 billion to fund parts or all of these new pri^rams. That 
$1.5 billion is still in reserve and it will remain in reserve at least 
until January 1, 1984. 

However, in the second continuing resolution, language was in- 
cluded which provides that if no authorization bill is enacted by 
January 1, 1984, the $1.5 billion held in reserve is automatically 
available for the section 8 existing housing program. On the other 
hand, if an authorization bill is enacted as part of this package, the 
$1.5 billion of funds in reserve continues in reserve until March 31, 
1984. 

That means that after we come back on January 23, the Appro- 
priations Committee will report a vehicle that will allocate the $1.5 
billion. Of course, we will be guided by the Authorization Act in 
our efforts to edlocate that $1.5 billion. 

But the important point to keep in mind is that unless this hous- 
ing authorization is enacted before we go home, unless we do that 
before January 1, 1984, the total $1.5 billion now in reserve will 
automatically be used for the section 8 existing pn^am. 

There is nothing wrong about that because additional section 8 
units provide subsidized housing for more families. But the Appro- 
priations Committee has made an effort to hold that $1.5 billion in 
reserve as long as possible so that there would be new funds avail- 
able for implementation of whatever new thrusts were adopted in a 
housing authorization bill. 

Therefore, I would urge that you support this rule and the hous- 
ing authorization bill — even though the procedure is clearly «i- 
traordinary. The point is that if we are going to have a housing au- 
thorization bill for 1984 — this package must hang together. 

Mr. Speaker, in summary, this is not the best way to l^islate. 
We all know that. But what it represents is both a compromise and 
a trade. Our history is replete with trades and compromises ihat 



yGoo<^\q 



287 

have a<diiev«d major pieces of l^islation. That is what this is — 
pure and simple — and I urge you to support it. 

Mr. Long of Louisiana. Mr. Speaker, I yield 30 seconds to the 
gentleman from New York (Mr. Garcia). 

Mr. Garcia. Mr. Speaker, I rise in support of this rule. And I 
also rise to commend the chairman of the full committee for work- 
ing out with the chairman of the full committee in the Senate this 
compromise. It is not perfect, but it is the best we can get. 

And I would hope that everybody will support the rule today. 

Ikfr. QuiLLBN. Mr. Speaker, to close debate, I yield the remainder 
of my time to the distinguished gentleman from Illinois (Mr. 
Michel), our minority leader. 

(Mr. Michel asked and was given permission to revise and extend 
his remarks.) 

Mr. Michel. Mr. Speaker, I rise in support of the rule. I think 
every one of us knows the arguments, pro and con, about IMF, Ex- 

Erts on both sides have spoken at length. I want to speak particu- 
■ly to Members on our side, who said we were shortchanging the 
process here by bringing this up in this form under this procedure. 
Aa I recall, there were 14 days of hearings on IMF in the commit- 
tee, there were 20 hours of debate on the floor of this House, with 
32 amendments being offered before it ever went over to the other 
body. 

It is my understanding also in the housing bill we had an exten- 
ove debate here. You remember initially how we were opposed to 
the magnitude of that bill, but it was pared down as it left the 
House and improved even more in conference so that it is accepta- 
ble to the administration on all counts. 

We have as a matter of fact already provided for the funding in 
the HUD appropriation bill. 

This will oe the first authorization for housing in 3 years. 

So, frankly, we have had a full airing and debate in both bodies 
and this is the time now for completing eiction on both the housing 
and IMF measures. 

I have two overriding concerns that I have got to make mention 
of here. 

The President of the United States, our President, is on the line 
here today. And I address my remarks primarily again over here 
on my side. Our President has had the courage to set a course for 
us and act upon it. At Williamsburg he told other industrial democ- 
racies that the United States would remain a partner with them in 
international development. He faced them eyeball to eyeball and 
put his credibility and our credibility on the line. He did the same 
m his efforts to reestablish our friendship and allegiance with our 
Caribbean neighbors, who are struggling to preserve democracy 
and freedom right at our doorstep. 

The INIF is very much a part of that effort. It is critical to Ja- 
maica, Costa Rica, Haiti, and others. What they now expect from 
VB is the measure of what we can expect from them in the future. 

This has not been an easy decision for me. We have folks on our 
side who feel strongly on both sides of the IMF issue. We are split 
ri^t down the midoJe. But somewhere along the line, the Presi- 
dent has to make tough decisions that the same President could 
have avoided as a candidate or simple observer of international oc- 



yGoot^le 



currences. When you are in the hot seat, realities of life hit home 
and we have to appreciate that here today. 

May I say further that my steadfastness on this thing ought not 
to be mistaken for simple jwlitical loyalty to the President. My sup- 
port for his efforts extends well beyond political boundaries. To me 
it is a matter of national interest and not political interest. 

And when I talk about national interests, I am not only talking 
about credibility abroad, but concern for our people at home, aver- 
age American families, all across this counti?. The Department of 
ihe Treasury says that inadequate funding of the IMP could result 
in export losses to the United States of $12 billion. And my col- 
leagues know what that means, it means a loss of 300,000 Ameri- 
can jobs. Let me repeat that number, 300,000 or more. 

And so I look at this as very much of a jobs bill. The gentleman 
from North Carolina made the point very well that we are loaning 
the money — not giving it away. It does not really have any budget 
impact. What we really are providing for in effect is a letter of 
craiit. 

As I recall, in the past we actually made money from our contri- 
bution to IMF. And even though we have been in a worldwide re- 
cession for the last several years, that net cost in interest to the 
United States has only been $42 million a year, for each of the leist 
5 years. That is a miniscule amount when you think in terms of 
what it has done out there in the Third World to prop up those 
governments, which in turn can purchase from ua. 

I have a dominant industry in my district where 50 percent of 
the people working for it depend upon an export market for their 
products. And that ex[X)rt market will not be there unless we keep 
those Third World countries alive. In my district, there are 7,000 
families whose income depends upon the export market for Cater- 
pillar products. I am talking about their jobs, their livelihood. 
True, many countries in the Third World have had serious troubles 
within these past several years, but in my judgment, the long- 
range implications here are very profound. We ought to do the 
right thing here today. Even though some may quarrel with the 
parliamentary procedure as a means of tearing the compromise 
agreement apart, we ought to do the right thing and support this 
rule today. 

Mr. Long of Louisiana. Mr. Speaker, I yield such time as he may 
consume to the gentleman from California (Mr, Lehman). 

(Mr. Lehman of California asked and was given permission to 
revise and extend his remarks.) 

Mr. Lehman of California. Mr. Speaker, I rise today to uree my 
collee^ues to join me in supporting the passage of H.R. 3959. Em- 
bodied in this bill is the housing authorization bill, H.R. 1, which 
represents countless hours of work by the House Subcommittee on 
Housing and Community Development and the House Banking 
Committee. The bill comes before us for a vote todav due primarily 
to the perseverance and negotiating skill of the chairman of the 
Housing Subcommittee, Mr. Gonzalez, and the chairmfm of the fiill 
Banking Committee, Mr. St Germain. I would like to offer my sin- 
cere congratulations to both of these gentlemen and their stanTs for 
shepherding this measure through both Houses of Congress with 
obvious success. 



yGoot^le 



This past April I was fortunate enough to chair a hearing of the 
Housing Subrommittee in my district in Stockton, Calif, where 
witness after witness testiHed to the effectiveness of current hous- 
ing programs, and provided evidence of the urgent need for the 
continuation and expansion of these programs. After suffering sub- 
stantial cutbacks on funding for housing programs during the last 
session of Congress, this measure will be the first housing reauthor- 
ization bill to pass the House in over 2 years. 

The bill will reauthorize a long list of programs that provide 
housing for many low-income Americans, assist first time home 
buyers in purchfising their first homes, and give sorely needed as- 
sistance to our cities through the use of community development 
block grants, urban development action grants, and other programs 
that I know are effective because I have seen firsthand the results 
produced by these programs in my district, as well in communities 
across the country. 

The $15.6 billion in this bill will not only provide housing for 
thousands of Americans, it will provide jobs for construction work- 
ers, much needed business for homebuilders, and a restored sense 
of civic pride for many of our communities. The bill has received 
bipartisan support in both Houses of Congress, and 1 know that my 
colleagues in the House will see fit to approve this measure today. 

Mr, Speaker, if we are to keep our commitment to provide 
decent, affordable housing for all of our citizens, we need to pass 
this bill. 

Mr. Long of Louisiana. Mr. Speaker, I yield 1 minute to the gen- 
tleman from Maryland (Mr. Mitchell). 

Mr. Mitchell. Mr. Speaker, I would like to raise some questions 
to the apartheid language that is in the IMF bill. 

From the way 1 read this language, it appears that it is not man- 
datory that the Secretary of the Treasury certify in writing to the 
conunittee. 

Could the gentleman give me some clarification on that? 

Mr. St Germain. Mr. Speaker, will the gentleman yield? 

Mr. Long of Louisiana. I yield to the gentleman from Rhode 
Island. 

Mr. St Germain. I thank the gentleman. 

I would like to state in our discussions and in my deliberations 
with Treasury on this, I come away and my understanding of the 
language is the Secretary has to, must certify and notify the com- 
mittees of the House. 

I sHeiII make sure he does in every instance. But in addition to 
that, at the beginning of each year I will put in a blanket request 
that the Secretary of Treasury to appear in each and every in- 
stance on these. 

Mr. Mitchell. I thank the gentleman. That clarifies it. It is an 
awful price to pay for housing. But we desperately need housing. 
We have got to pay a price for the IMF bill and language not as 
strong on apartheid as I would want it to be, but I am going to sup- 
port the rule, only because we desperately need housing. 

Mr. Long of Louisiana. Mr. Speaker, I yield 3 minutes to the dis- 
tinguished chairman of the committee, the gentleman from Rhode 
Isleoid (Mr. St Germain). 



yGoot^le 



D 1510 

Mr. Dicks. Mr. Speaker, will the gentleman yield? 

Mr. St Germain. I yield to the gentleman from Washington. 

(Mr. Dicks asked and was given permission to revise and extend 
his remarks.) 

Mr. Dicks. Mr. Speaker, I rise in strong support of the rule, par- 
ticularly hecause of the outstanding work done on the Export- 
Import Bank and on the housing bill. 

Mr. St Germain. I thank the gentleman. 

Mr. Wyue. Mr. Speaker, will the gentleman yield? 

Mr. St Germain. I yield to the gentleman from Ohio (Mr. Wylie), 
the distinguished ranking minority member. 

(Mr. Wylie asked and was given permission to revise and extend 
his remarks.) 

Mr. Wylie. I thank the distinguished chairman for yielding. 

Mr. Speaker, I have a point of clarification. 

I would like to ask the chairman whether he agrees with my in- 
terpretation relative to commitment as stated in the paper which I 
handed him a little while ago. 

Mr. St Germain. Mr. Speaker, I would say to the gentleman that 
yes, indeed, I agree. The gentleman's understanding is correct. The 
term "commitment" then should refer to and include conditional 
commitments. 

Mr. Wyue. I thank the gentleman. 

Mr. St Germain. Mr. Speaker, the legislation before us repre- 
sents the work product of so many Members that it would take too 
much time to mention them all and thank them for their contribu- 
tions. However, I would like to state for the record that the propos- 
al before ua would not be here without the efforts of the House 
leadership on both sides of the aisle; my good friend and associate, 
Chalmers P. Wylie, ranking minority member of the committee; 
Henry B. Gonzalez, chairman; and Stewart B. McKinney, ranking 
minority member of our Housing and Community Development 
Subcommittee; Jerry M. Patterson, chairman; and Doug Bereuter, 
ranking minority member of our Subcommittee on International 
Development Institutions; and Stephen L. Neal, chairman; and Jim 
Leach, ranking minority member of our Subcommittee on Interna- 
tional Trade. In addition, I want to commend the efforts of M of 
my colleagues on the committee for their intense interest, valuable 
contributions, and total support. 

The process and procedure in which we are engaged in bringing 
this legislation to the floor is somewhat unique. For those who feel 
oppressed by this unique procedure, I apologize. I feel, however, 
that the importance of the items contained in the legislation; such 
as, new housing authorization programs for 2 years; new authoriza- 
tion for U.S. participation in the International Monetary Fund; 
new authorization for the Export-Import Bank; new authorization 
for the Inter-American Development Bank, the Asian Development 
Bank and Asian Development Fund, and the African Development 
Fund; new bank regulatory provisions to be used by the regulatory 
agencies concerning U.S. bank lending to lesser develop&i coun- 
tries; and other important matters justify the process. As most, if 
not all, of the Members know, the authorizing l^islation before us 



yGoot^le 



291 

today has traveled a circuitous and tortuous route. This House ini- 
tially passed a Housing and Community Development bill, H.R. 1, 
as July 13, 1983, by a vote of 263 to 158. The Senate called up their 
housing authorization legislation on June 21, 1983, and debated for 
approximately 1 hour and then withdrew the legislation. It was un- 
derstood the other body would subsequently return to consideration 
of the housing and community development legislation. It never 
happened. 

On August 4, 1983, the House passed H.R. 2957 which provided 
new authorizations for the IMF, Export-Import Bank, and the mul- 
tilateral development banks. The Senate has passed authorizing 
legislation for me IMF and Export-Import Bank but has not yet 
considered authorizing legislation for the multilateral development 
banks. 

Mr. Speaker, I relate a little bit of the history concerning these 
l^islative matters, in part, to justify the unique procedure in 
which we are engaged today. Without the authorization and appro- 
priation of funds for the IMF there would be no housing and urban 
development bill. Also, I am convinced that the housing component 
of this pacluige will help obtain the necessary votes. We are faced 
with the necessity of both authorizing and appropriating funds for 
the International Monetary Fund in a single piece of legislation. To 
my coUeagues who may feel that their jurisdiction has been violat- 
ea, I apologize. The lateness of the hour, the insistence of the ad- 
ministration, left me no alternative. On balance, the substance of 
the l^islation before us as regards its domestic importance and the 
provisions for our necessary continued U.S. participation in the 
mtemational arena overwhelmingly justify the procedure we have 
before us. 

Mr. Speaker, I would now like to describe some of the major pro- 
visions contained in the various titles of this legislation. 

The first five titles of this legislation are the housing and com- 
munity development provisions that were resolved based on agree- 
ments between both the House and Senate and the administration. 

Title I contains the $3,4 billion reauthorization of the community 
development block grant and $440 million for the urban develop- 
ment action grant program. As part of the reauthorization of these 
two important pn^rams, this l^slation makes a number of policy 
changes with r^ard to both the CDBG and UDAG programs. The 
mincipal policy change deals with the so-called "principally bene- 
fit" issue. This legislation states that not less than 51 percent of 
CDBG funds are to be used for activities to benefit low and moder- 
ate income persons for a period of not more than 3 years. There 
are a number of other changes in this title including grandfather- 
ing provisions that would keep entitlement cities and urban coun- 
ties that have fallen below the population threshold as entitlement 
communities for an additional 2 fiscal years. The section 312 reha- 
Ulitation loan program, of which I was one of the principal authors 
back in 1964, was extended for 1 additional fiscal year. 

Ld title n we have authorized $9.9 billion for the assisted housing 
programs at levels set forth in appropriations acts for fiscal year 
1^4, and have authorized such sums as may be necessary for fiscal 
year 1985. We have retained the assisted housing delivery system 
after a lengthy stn^gle with the administration who wanted to re- 



yGoot^le 



292 

place such programs as section 8 and public housing with a housing 
voucher program. The very difficult issue of Uie t^iant rental roll- 
back is resolved not entirely satisfactorily to the House provision, 
but provides for increased deductions of $480 per child, child-care 
expenses, $400 for elderly or handicapped households, and medical 
expenses in excess of 3 percent of income for elderly and handi- 
capped persons. By providing for these additional deductions we 
will sul^tantially reduce tenant rents for people living in assisted 
housing. I regret that in our negotiations with the administration, 
we were unable to maintain the changes made in the public hous- 
ing comprehensive modernization program and the Performance 
Funding System of the public housing operating subsidies program. 
Simply put, the administration wanted no statutory changes in 
these programs, but 0MB Director Stockman has sent me a letter 
stating that the administration will make no fundamental changes 
or structural program reforms absent seeking authorizing legisla- 
tion. 

Title III provides a $350 million program for rental housing reha- 
bilitation and production. It is modeled along the lines developed 
by our distinguished coUesigue from New York Chuck Schumer. 
This program will provide $615 million to be made available over 
the next 2 fiscal years. This new rental program provides for up- 
front grants rather than long-term subsidies as our previous assist- 
ed housing programs had been carried out. 

Title IV extends all of the FHA insurance pri^rams through 
fiscal year 1985, including the section 235 homeownership assist- 
ance program. A demonstration of the FHA insurance for alterna- 
tive mortgage instruments is provided for with various limits as to 
the total amount of its activities. The flood insurance prt^am is 
extended for the next 2 fiscal years. The crime insurance program 
is extended for 1 additionsi] year and the riot reinsurance program 
will be terminated. 

The secondary mortgage market provisions were deleted from 
this l^slative package, since the Senate insisted that without its 
securities legislation they could not consider the other secondary 
market provisions that were contained in H.R. 1; but the Housing 
Banking Committee's Housing Subcommittee will be conducting 
hearings on the secondary market issues early in the next session 
and, hopefully, we can get this legislation moving early next year. 

Title V retains the essential structure of the $3.2 billion Farmers 
Home Administration's rural housing programs for both fiscal 
years 1984 and 1985. A new rural housing preservation prc^ram 
targeted at the low and very low income population is es^blished 
in this title, and I would like to commend our distinguished col- 
league from New York (Stan Lundine), who is the principetl propo- 
nent of this program. 

Mr. Speaker, I am plesised to report that the International Mone- 
tary Fund provisions in title VIII and the International Lending 
Supervision Act of 1983 in title IX, are virtualhr indentical to the 
major provisions of H.R. 2957 which passed the House on August 8, 
1983. While this final result, like the rest of this legislation, is a 
compromise between House and Senate positions, it is a compro- 
mise that retains essentially all the tough international finance re- 
forms adopted by the House. It is a compromise that will insure 



yGoot^le 



293 

that the foreini loan activities of our money center banks will be 
monitored by CongrMS, thepublic, the Federeil bank r^ulators and 
the General Accounting Office, more closely than ever before. 

Thorough audit and accountability is provided for by specific 
statutory inatructions to the Secretary of the Treasury, the U.S. 
IMF r^nresentative. and to the Federal bfuiking agencies in fur* 
therance of the Declaration of Policy contained in the Internation- 
al Lending Supervision Act. That declaration states, and I quote, 
"It is J>olic? of the Congress to assure that the economic health and 
stability of the United States and the other nations of the world 
shall not be adversely affected or threatened in the future by im- 
prudent lending practices or inadequate supervision." 

The proviaions of title VII will require the U.S. representative to 
the IMF to vote against IMF loans which would bail out banks for 
their imprudent loans. Congressional control over the IMF has 
been increased by consultation requirements before they increase 
SDR allocations and directives to work for greater monitoring and 
diBcloeure Iqr the IMF of foreign loan trends and increases in the 
maturity and lower interest rates on the debts owed by developing 
nations. Specific instructionB to the U.S. representative to the IMF 
will result in comprehensive reports that will enable the appropri- 
ate committees of the Congress to discharge satisfactorily their 
oversight responsibilities. In the future, the IMF will be a greater 
participant in the effort of preventing financial crises. 

Title IX mandates far more intensive supervision by the regula- 
tory agencies than has been the case in the past. Several provi- 
sions, each of which reflect the House position, should be empha- 
sized. 

The provision on capital adequacy — section 908 — is of utmost im- 
portance. The Senate receded to the tough House language requir- 
ing for the first time that regulators establish fixed standard^ of 
adequate capital for "multinational" bernks. Ffiilure to maintain es- 
tablished capital levels is explicitly made an "unsafe and unsound 
piactice" within the meiming of Section 8 of the Federal Deposit 
Insurance Act~ A penalty of $1,000 a day for violation of regula- 
tions promulgated under this authority is provided. 

In addition, the banking agencies are required to impose loan- 
losB reserves on bank loans in which countries are facing protract- 
ed repayment difUculties. This section — sec. 905 — a merger of 
Senate and House provisions also requires the banking eigencies to 
analyze each foreign loan rescheduling, assess the loan-loss risk re- 
flected in rescheduling agreements, and insure that bank capital 
and reserve positions are adequate to accommodate potential losses 
of foreign loans. 

To address the deeply troublesome problem of banks charging ex- 
ce«ve fees for rescheduling imprudent and unjustifiably short- 
term loans, the Senate has accepted the House provision which will 
prevent excessive fees by requiring agency regulation of such fees 
and prohibiting banks from charging any fees over the administra- 
tive costs of the rescheduling unless they are paid by the borrowing 
country in equal installments over the life of the loan, rather than 
in one ourdensome, up front, lump sum payment. 

The Senate and the House also agreed on the need for more bank 
disckBure. The International Lending Supervision Act mandates 



yGoot^le 



294 

an unprecedented mcrease in the distribution of international lend- 
ing information, and will assure that we will never again be kept 
in the dark by the international banks r^arding the true size and 
growth of international lending. 

In addition to disclosure, the House and Senate agreed that there 
is a need for banks to analyze much more carefully the repayment 
capacity of the recipients of foreign loans. To address this problem, 
the Senate has accepted, with only slight modification, the tough 
House requirement that commercial banks conduct a thorough re- 
payment analysis of every foreign loan above $20 million in size. 

To clearly demonstrate congressional intention to monitor closely 
the international lending supervision activities of our banking 
agencies, the Senate agreed to the House provision clarifying and 

firoviding the authority the GAO needs to fully audit international 
ending activities. 

To assure that the agency with ultimate insurance responsibil- 
ity — the FDIC — is a full participfmt in international supervision, 
the Senate accepted the House provision directing that the Federal 
Deposit Insurance Corporation will be given equal representation 
on the International Committee on Banking Itegulations and Su- 
pervisory Practices. Over time, the FDIC perspective will strength- 
en international regulation and supervision. 

Of great importance is the fact that both titles VTII and Dt re- 
quire significant reporte which will assure public discloeure and 
continued congressional participation. Both are essential if we Eire 
to improve the existing system of IMF funding and regulatory su- 
pervision. Both House and Senate versions contained reporting re- 
quirements with appropriate public disclosure. 

Mr. Speaker, this legislation would edso extend the Eximbank, so 
vitel to U.S. exports, until September 30, 1986, improve Exim's sup- 
port of small business exporte, expand Exim's programs to incluae 
exports of services as well as go<>ds, and restructure the terms <rf 
the Exim board members to make them more responsive to Con- 
gress. To offset the effects of unfair foreign subsidies, it would au- 
thorize Exim to grant lump sum eissistance to injured companies. 
To increase U.S. exports, the Eximbank, and the Agency for Inter- 
national Development would be required to establish tied aid credit 
progTEims for U.S. exports. 

Mr. Speaker, title X of this legislation would provide U.S. fund- 
ing for the Inter-American Development Bank, the Asian Develop- 
ment Bank and Development Fund, and Africtm Development 
Fund. 

Mr. Speaker, the "apartheid" and "Communist dictatorship" 
amendment before us does contein an amendment to the House- 
passed language on apartheid and Communist dictatorship lan- 
guage. 

While some of our Members might not approve of the Senate 
amendment, I believe when the amendment is looked at as a 
whole, the Senate amendment in this instance is acceptable. The 
Senate amendment provides, in the instence of apartheid, that the 
Secretary of the Treasury must appear before the committees of 
Congress having made certain findings, before the Executive Direc- 
tor to the IMF can vote for a resolution providing credits to a coun- 
try which engages in apartheid. These frndlngs must state that the 



yGoot^le 



credits are made available only if the majority of the people in the 
nation will be benefited. There are other criteria which must be 
met before a positive vote can be made concerning the granting of 
credits to a country which practices apartheid, all equally stringent 
as the one just mentioned. 

It is my intention at the beginning of every congressional session 
to ask for a blanket request — the Secretary of the Treasury will 
have to appear before our committee in each and every instance 
where an IMF credit is being considered to a country which prac- 
tices apartheid. 

"Hie Secretary of the Treasury will have to notify us and certify 
to the criteria in this amendment. I sheUl make sure he does it in 
eath and every instance. 

Mr. Speaker, this is a good amendment which will evidence to 
the world our commitment to do whatever we can to stamp out this 
repugnant form of economic, social and racial prejudice. 

The Senate amendment concerning Communist dictatorships as 
ing»"*"* on by the Senate would allow our Executive Director to the 
IMF to vote in favor of the granting of a credit to such nations, 
again after the Secretary of the Treasury appears before the com- 
mittees of the Congress. In those cases where, among other things, 
it can be shown the majority of the people in that country would 
benefit from an IMF credit, we can vote in the affirmative. 

For Hungary and Yugoslavia and other countries which we are 
trying to assist in breaking away from their Communist leanings 
this is, in my opinion, a good amendment. Therefore, Mr. Speaker, 
I believe the "apartheid" and "Communist dictatorship" amend- 
ment is a good amendment and should be supported by the Mem- 
bers of the House. 

Mr. Spefiker and Members of ths House, I repeat, in the spirit of 
compromise and in order to get the best result possible, there are 
amne items contained in this rather weighty package that may not 
totally satisfy all Members. By the same token, it seems clear to 
me for anyone interested in housing and community development 
as well as the plight of our low-income people, for those who are 
concerned about the present and future economic well-being of this 
Nation; for those who are interested in a continued commitment to 
our multilateral development banks; for those who subscribe to the 
[diilosophy that the Ex-lm Bank is needed to create jobs; and that 
the amendments contained herein will create even more jobs, par- 
ticularly in the small business sector — 1 say that we have brought 
a le^slative package that is worthy of your support. 

Mr. Speaker, I include in the record at this point a letter from 
the Director of the Office of Management and Budget, David Stock- 
man, which states the administration will make no fundamental or 
structural progriun changes to the public housing operating subsi- 
^ and modernization programs in 1985 without iirst seeking au- 
ttoriziiig I^islation: 



yGoot^le 



ExBCUTtvB OmcB or rm P 

OrpicB or Manaoehknt and BuDGKr, 

Waehington. D.C, November 6, 1983. 
Hon. Fbrnand St Germain, 

Chairman, Banking, Finance and Urban Affairs Committee, House of Representa- 
tives. Washington, D.C. 
Dear Mr, Chaibhan: This letter is intended to clarify the Administration's posi- 
tion concerning fundamental structural program reforms for the Public Hoiunng 
Operating Subsidy and Modernization Pri^raniB in 1984 and 1985. 

Ab you know, the Department of Housine and Urban Development has developed, 
through published r^ulations and other administrative procedures, a complex, tech- 
nical system for allocating operating subsidies and modernization fuods among 
more than 2,600 local puhnc housing authorities. The Department will administer 
these programs in 1984 with the funding provided in the HUD-Independent Agen- 
cies Appropriations Act of 1984 (P.L, 98-45) pursuant to regulations and pohcies in 
effect as of November 15, 1983, except prescient to the pending authorization bilL 
The Administration has agreed that it would seek authorizing legislation for any 
fundamental changes or structural program reforms it might wish to make for these 
programs in 1985. 

1 hope these clarifications will remove any concerns Members of Congress may 
have concerning the Administration's position on this matter. 
Sincerely, 

David A. Stockman, 

Dtrtctor. 

Mr. Vento. Mr. Speaker, will the gentleman yield? 

Mr. St. Germain. I yield to the gentleman from Minnesota. 

(Mr. VENTO asked and was given permission to revise and 
extend his remarks.) 

Mr. Vento. Mr. Speaker, I rise in support of this amendment to 
H.R. 3959 and commend the chairman, Mr. St Germain, of the 
Banking, Finance and Urban Affmrs Committee for the good work 
that he has done to bring this matter before us today. 

Indeed, this amendment includes the culmination of a great deal 
of work in the Banking, Finance and Urban Affairs Committee and 
subcommittees on which I serve. 

These matters have been debated and discussed for many hours 
in the full House as well as in our committee and have been re- 
packaged in this manner to insure the Reagan administration's 
support when this measure reaches the President's desk. 

This administration has successfully undermined or resisted any 
housing and community development legislation the past 2 years. 
Hopefully, this will not be the case in the future. 

"This measure continued the authorization of assisted and public 
housing, both urban and rural, community development block 
grants, FHA and GNMA programs, and urban development action 
grants. 

Some new programs including rental rehabilitation, rental con- 
struction program and emergency shelter are also contained in this 
package along with many substantive changes in the existing law. 
This is a major victory for those of us who feel that the National 
Government must play a key role in helping create the environ- 
ment and housing that American families need. 

The other titles of this amendment before us are equally impoi^ 
tant and some are controversial. 

Mr. Speaker, members are right to be concerned about the IMF, 
but should be aware that this measure for the quota increase for 
the International Monetary Fund and general agreement to 
borrow, special drawing rights amounts to the United States bor- 



yGoot^le 



297 

rowing about $8.4 billion to fund these programs, which is only 
about 20 percent of the total IMF new resources. The remainder 
comes from other member nations. 

The importance of this program to help achieve stability in the 
international economy are extremely important. Even the United 
States itself from time to time has utilized the IMF program to 
deal with liquidity problems. 

Nevertheless, m^or reforms are needed within the context of the 
existing IMF/GAB program. This measure before us provides for 
new regulation and reporting requirements for U.S. financial insti- 
tutions, limitations on the ability of the IMF to borrow in U.S. dol- 
lars and notification to the committees of Congress. It specifically 
states c^jectives and concerns important to U.S. economic policy 
and the interrelationship of the IMF activities to our economy. Fi- 
nally, the eimendment contains the language which I and others 
strongly supported to insure that the excessive bank and broker 
charges will not be permitted and that the IMF will strive to par- 
ticipate in loans to Third World nations at limited rates of interest 
and stretch out the term so that reasonable time and cost would 
prevail to permit a realistic prospect for these nations to successful- 
ly manage these enormous debts. 

The Export/Import Bank authorization is also included and is an 
extremely important tool to assist our U.S. exports. The multilater- 
al development banks are authorized to permit us to reach out in 
coordinated manner with other nations and offer real assistance to 
the underdeveloped Third World nations. 

These measures all reflect the strong imprint of the legislative 
process. Frankly I think we have made substantial progress under 
difficult circumstances to meet our responsibilities and urge my 
colleagues in the House to support this measure. 

Mr. BoNKEH. Mr. Speaker, I rise in support of the rule (H. Res. 
379) and the conference report on H.R. 3959 as amended by the 
Senate, containing among other provisions replenishment of the 
International Monetary Fund, extension of the Export-Import 
Bank, and establishment of a program of mixed credit for U.S. ex- 
ports to developing nations. I congratulate particularly the leaders 
of the House and Senate Banking Committees, the Ways and 
Means Committee, and the Finance Committee for developing the 
compn)mise package which is now before the House. I believe it is 
a package which will contribute greatly to international financial 
stability and will improve the competitiveness of American firms 
in foreign markets. Since four out of five new jobs in the United 
States in recent years are attributable to export markets, it is es- 
sential that the world trading system be maintained and improved, 
liiis legislation makes a major contribution to international trade, 
and therefore to employment in this country, and I strongly sup- 
port it. 

The pn^am authorizing the use of mixed credits to facilitate 
and increase U.S. exports to developing countries is an especially 
important and welcomed element of this legislation. Such a pro- 
gram is long overdue. As my colleagues will recall, mixed credit 
provisions were deleted from the House version of this legislation 
when it was considered last August. The mixed credits proposal 
now before us consists mostly of provisions adopted by the Senate. 



yGoot^le 



In my judgment. It is a far more constructive and workable propos- 
al than the one previously considered and rejected by the House. 

In the aggregate, Mr. Speaker, the developing world constitutes 
both our largest and most rapidly expanding export market. One of 
the major competitive obstacles U.S. exporters have encountered in 
that market is the ability of other exporting nations to offer rela- 
tively low-cost financing for projects and export goods by mixing in 
various ways concessional government credits with market-rate 
commercial credits while the United States has had no mechanism 
for mixing of credits. As a result, many contracts have been lost to 
our competitors even where the direct cost of our goods has been 
highly competitive. By using mixed credits, our competitors have 
been able to provide cheaper financing which has offset the higher 
cost and sometimes lower quality of their goods and services. 

The fact is that financing is a crucial element in the purchasing 
decisions of developing countries. In order to continue to compete 
in those markets, we simply must be able to meet the financing 
terms offered by our competitors. 

Progress has been made, Mr. Speaker, to reach eigreements with 
our competitors to set common limits on export financing. In par- 
ticular, an agreement, known as the Arrangement on Export Cred- 
its has been reached and is in force among members of the Organi- 
zation for Economic Cooperation and Development. That agree- 
ment, however, does not fully cover the use of mixed credits. As a 
result, the use of mixed credits by our export competitors continues 
to pose a problem for U.S. industries seeking to maintain EUid 
expand business in the developing nations. 

Mr. SpeEiker, I favor continued efforts to expand the scope and 
improve the procedures of the OECD agreement so as to neutralize 
the effects of mixed credits upon export competition. In the mean- 
time, however, we need the ability to mix credits ourselves where 
necessary to meet foreign competition. The proposal now before the 
House, which I urge my colleagues to join me in supporting, would 
provide that ability. In general terms, it directs the Export-Import 
Bank and the Agency for International Development to work to- 
gether to combine concessional and commercial credits tied to the 
purchase of U.S. goods and services. It authorizes mixing of govern- 
mental credits and public-private cofinancing, as well as parallel fi- 
nancing. Financing may be integrated into single packages subject 
to a single set of financial terms, or may be a combination of sepa- 
rate lines of credit. 

To the extent that this program draws upon funds administered 
by the Agency for International Development, authorized by the 
Foreign Assistance Act, it falls within the jurisdiction of the Com- 
mittee on Foreign Affairs. To the extent that it directly eiffects U.S. 
exports and export competitiveness, it also comes within the juris- 
diction of the Subcommittee on International Ekionomic Policy and 
Trade, which I have the honor to chair. Because of the press of 
other business, Mr. Speaker, and the defeat of the mixed credits 
program originally recommended by the Committee on Banking, 
the Committee on Foreign Affairs did not have an opportunity to 
consider or act upon proposals pending before it to establish a 
mixed credits program. The proposal now pending before the 
House, however, is very similar to the proposals referred to the 



yGoot^le 



Fmeign Af&urs Committee on the basis of the role of the Agency 
for Intemational Development and the use particularly of econom- 
ic supporting assiatance funds authorized by the Foreign Assistance 
Act. 

Mr. Speaker, I am certain that the Committee on Foreign Af- 
fairs, and the subcommittee which I chair, will take an active role 
and will fully exercise its jurisdiction in providing for any neces- 
sary refinement and for uie funding and implementation of the 
mixed-credit pn^ram established by the bill oefore the House. I 
was glad to work with the distinguished chairman of the Commit- 
tee on Foreign Affairs, Mr. Zablocki, in assuring the Committee on 
Bankine of our support for the establishment of a mixed-credit pro- 
gram along the lines approved by the Senate despite its effect on 
existing prcKrams within the jurisdiction of the Foreign Affairs 
Committee. I want to thank and commend Chairman Zablocki for 
rect^nizing the need to establish a mixed-credit program in the in- 
terest of U.S, export competitiveness and foreign development, and 
his readiness to exercise the jurisdiction of the Foreign Affairs 
Committee over this prc^am through future authorization of for- 
eign assistance funds and other measures rather than delay the es- 
tablishment of a mixed credits program at this time. I think this is 
a wise and most responsible approach in which I intend to take 
part actively. 

With respect to the $8.4 billion increase in U.S. participation in 
the Intemational Monetary Fund provided by this bill, Mr. Speak- 
er, I believe this further U.S. commitment, which will be matched 
by the other developed nations of the world, is in the best interests 
m the American people. As I have already noted, we benefit enor- 
mously from trade with poorer nations who bear heavy debt bur- 
dens in their continuing efforts to meet the needs of their own 
people and to modernize. Many of those countries have been hard 
nit by the energy crisis and the world economic recession of recent 
years. A default by one or more major debtor nations could set off 
a chain reaction that would drastically depress world trade and 
prosperity. In short, we have much more to lose if these nations 
are not helped cope with their debt problems than the cost of pro- 
viding that help. Funds provided to the International Monetary 
Fund are loans not grants. In reloaning those funds to countries 
witii faltering economies, the IMF imposes strict conditions and 
provides m^or incentives which, in the long run, help to avert 
future economic problems. 

I do not necessarily agree, Mr. Speaker, with all of the conditions 
impoeed by this l^islation upon U.S. participation in the IMF. I 
believe, however, that the provisions designed to impose greater 
discipline upon lending to developing nations by large private 
banks are useful and balanced. We must encourage and assure con- 
tinued l^iding by such banks because the IMF alone cannot pro- 
vide all of the financing needed to achieve growth and development 
throughout the developing world. At the same time, however, we 
must assure thatprivate banks do not engage in irresponsible lend- 
ing or utilize IMF funds to recover from irresponsible lending prac- 
tices. I believe the bill before us strikes the proper balance between 
encouraging and better regulating private bank lending to the de- 
veloping world. 



37-922 O - 64 - 



yGoot^le 



300 

Finally, Mr. Speaker, the Export-Import Bank since 1945 has 
provided direct loans and loan guarantees to finance the export of 
major capital equipment from the United States. It has contributed 
substantially to our export competitiveness. When commercial in- 
terest rates were relatively low, it was able to accomplish its legis- 
lative mandate to facilitate exports while operating on a self-sus- 
taining basis. As U.S. interest rates have risen, however, it has 
become less and less able to meet foreign export financing competi- 
tion. In order to continue to perform its principle function of facili- 
tating exports, the Export-Import Bank's authorities must not only 
be extended and its funds replenished, but it must be authorized to 

five greater weight to matching the financing terms being offered 
y our competitors, and somewhat less weight to making a profit 
on its own operations. Again, I believe this bill provides these 
needed changes in the Export-Import Bank charter. 

The United States, Mr. Speaker, through the Export-Import 
Bank helps to finance only about 13 percent of all of our manufac- 
turered exports, while Government of France helps finance more 
than 25 percent of its exports, Great Britain more than 50 percent 
and Japan more than 40 percent. The Eximbank is an essential ele- 
ment of our national export competitiveness effort whose continu- 
ation under more liberal lending terms is needed to counter the 
even more aggressive programs by our competitors. 

Mr. Speaker, for all of these reasons I urge my colleagues to sup- 
port House Resolution 379 and the amended conference on H.R. 
3959. 

• Mr. Porter. Mr. Speaker, today we are considering legislation to 
increase the U.S. quota in the International Monetary Fund [IMF] 
by $8.4 billion. The requested increase would provide $5,8 billion to 
supplement the basic resources of the IMF and $2.6 billion to the 
General Agreement To Borrow. 

This legislation comes only after a compromise w£is struck to in- 
clude the authorization for the Nation's housing programs with the 
IMF's quota increase. It is important to point out that the $16 bil- 
lion authorized for the housing programs in this bill is not new 
spending authority. The bill simply determines how the money al- 
ready appropriated by this House and signed into law by the I^esi- 
dent will be spent for the Nation's housing program. 

The issue then turns to the IMF portion of the bill. As I said in 
my statement on August 3, the last time the House debated this 
bill, my support for the requested quota increase hinges on provi- 
sions of the legislation that will instill discipline in international 
lending practices of U.S. banks. Today, I support this compromise 
legislation because its provisions are very similar to the House's 
original tough provisions to strengthen bank lending practices in 
four important areas. 

First, the bill explicitly instructs the U.S. Director at the IMF to 
oppose and vote against requested fund drawings where, in the 
opinion of the Director, the fund resources will be used to pay for 
loans which have been imprudently made by banking institutions. 
This language specifically precludes the possibility of using this 
new quota increase to bail out U.S. banks which overextended 
themselves and now experience great difficulty in collecting debts 
owed to them. 



yGoot^le 



Second, the compromise includes two provisions to clamp down 
on tbe banks' capital and reason requirements. The appropriate 
Federal bonk superviBors will now establish a reserve level for fi- 
nancial institutions whenever the agency determines that the 
public or private borrowers are unable to meet their loan obliga- 
tions, and will require banks to maintain adequate capital levels. 
These provisions are fundamentally necessary to encourage banks 
to return to prudent bank practices. The establishment of reserves 
will provide coverage on a country-by-country basis when it ap- 
s likely that an individual country will not be able to repay its 



pears 1 
loans. 



Capital requirements will assure that financial institutions are 
not making large lotms that will endanger their overall capital sit- 
uation. Previously, large bemka were making loans that were of a 
higher percentage of their capital than smaller banks could make. 
The result was that laige banks were imprudently making huge 
loans that, if defaulted, could have seriously jeapordize the banks' 
oiverall capital strength. Smaller banks had been closely monitored 
to assure that their loans could not endanger the institutions' over- 
all health. The equalization of capital ratios mandated by this leg- 
ialation would require all banks, regardless of size, not to m£ike 
loans greater than a certain percentage of their capital. 

Hie compromise also directs the appropriate Federal banking 
agency to evaluate a foreign country's exposure when evaluating 
capit^ adequacy standards. Again, this is basically the tougher 
House language. The Senate's provisions simply established capital 
adequacy requirements, but the House went futher to require 
banks that now do not meet the standard, to establish a plan to 
meet the capital requirements. If after establishing the plan, a 
bank does not meet the plan's outline. Federal agencies will use 
their full enforcement powers, including the levying of heavy fines, 
to hring the offending institutions into compliance. 

FiiuUly, this bill provides for the collection and disclosure of cer- 
tain international lending information for dissemination to the 
public. It is vitally important, in my judgment, to provide adequate 
information to potential bank investors so that they understand 
the institutions' commitment to international lending before 
making an investment. 

Mr. Speaker, the Congress must approve the requested increase 
in the U.S. contribution to the IMF to assist the world economy as 
weU as the U.S. economy. Without the IMF loans, lesser developed 
countries (LDC's) would not have access to the capital necessary to 
improve their economies. These LE)C's use a substantial percentage 
(rf their IMF loans to purchase American goods. When we realize 
that some 20 percent of all U.S. jobs can be directly attributed to 
exorting, the importance of assuring export opportunities for LDC's 
becomes apparent. Further, it is important to the world's economic 
stability that the U.S. join the other 145 IMF member nations in 
increasing its shares of IMF funding. If we do not provide these 
funds, other member nations will withdraw support from the IMF 
and further imbalance world economic growth and the possibility 
of international monetary collapse could result. 1 urge my col- 
leagues to support this legislation-^ 



yGoot^le 



• Ms. Kaftur. Mr. Speaker, the reauthorization of the Export- 
Import Bank includes a new provision which my colleague from 
Louisiana, Mr. Roemer, and I offered in the Banking Committee to 
aid small business. This provision will give small businesses im- 

firoved access to the export financing programs of the Export- 
mport Bank. 

AH of us are aware of the important contributions small business 
makes to our economy in terms of jobs and innovative technology. 
Small business can also become a leading contributor in exporting 
if competitive export financing is made available. Indeed, the Com- 
merce Department estimates that at least 20,000 businesses in this 
country would export, but currently do not. In fact, only 1 percent 
of American manufacturers account for over 80 percent of our ex- 
ports. As we face record trade deficits, it is imperative that small 
businesses become more active in exporting. Without question, in- 
creasing exports will improve both our balance of trade posture 
and our employment situation. Small businesses, as the creators of 
the largest number of jobs in this country, are in the best position 
to achieve those goals. 

The new Exim provisions call for the establishment of a smedl 
business set-aside for iiscEil year 1984 equal to 6 percent of the total 
direct loan, guaranteed loan and insurance levels provided in ap- 
propriations acts. The percentage would increase to 7 percent m 
hscal year 1985, 8 percent in fiscal year 1986 and 10 percent in 
fiscal year 1987, the final year of the reauthorization. This set-aside 
would increase small business export financing by over $2.3 billion 
in the next 4 years without increasing Exim's budget. This provi- 
sion will ensure that Exim's funds are utilized more produc^vely. 

Second, the provisions also direct Exim to establish a program to 
provide lines of credit or guarantees to consortia of local banks, 
export trading companies, small business investment companies. 
State financing companies, and export financing cooperatives. 
These lines of credit or guarantees would be used by the consortia 
to finance small business exports. 

Third, Exim would be required to promote small business exports 
and its export financing programs in cooperation with the Depart- 
ment of Commerce, the Small Business Administration, and espe- 
cially the private sector. This is critical to enable small business to 
be aware of the financing to take advantage of it. 

Fourth, at least three members of the Advisory Committee estab- 
lished in the bill must be chosen from the small business communi- 
ty. In addition, at least one of the five members of the board of di- 
rectors must be appointed from the small business community to 
represent small business. 

Fifth, Exim is also directed to ui^e the Foreign Credit Insurance 
Association (FCIA) to provide insurance against 100 percent of the 
loss of export sales up to $100,000. 

Lastly, Exim must report annually to Congress on the effective- 
ness of the set-aside, the small business programs, and Elxim's ef- 
forts in promoting small business exports. This is an important pro- 
vision for it will enable Congress to monitor Exim's enorts in fiil- 
filling the mandate of these new provisions. 

These provisions will make more financing available to small 
business exporters. The program will only be successful, however, if 



yGoot^le 



EaJm aggressively implements this legislation. It is incumbent 
iqiofL Ezim to reach out into the small business community in a 
poaitivewa^. 

I would like to include in the Record an editorial which appeared 
in the Toledo Blade on May 9, 19S3, after passage of the ESxim re- 
authorization b^ the House Banking Committee. The amendment 
was later modified. The editorial follows: 



Practical Amendments 



_« a •ubatantdal contribution that Congresswoman Mar^ Kaptur made to 

latkin autluMriimg new Import-Export Bank loan programs for fiBcal 19S4 and 
15. She achieved agreement in a House subcommittee on her amendments aimed 
■t giving tmall bunneasefl — those with less than S35 million a year in annual 
mIm— aluKBr dice of the ban pie. 
Tiia would be a fi ' '— ' ■ 



li«ririnti( 
IKSTsh 



a fonrard-looking change, reflecting an awareness of the need tt 



JSM 



. t fr<Hn the current 3 percent to 9 percent in the first year 

^ t in the secoDd. Inasmuch as nearly $14 billion a year is involv^ in 

dinct louw 1^ tite bank and in loan guarantees for other financial institutions to 
help American bonneeeee operate on the international scene, the amount diverted 
to amall finna would be aubatantial. 

Vmnf commuiiitiee benefit from the global business done by large firms, such as 
UuM here in the Tbledo area. But figurea cited by Coi^reeswoman Kaptur indicate 
that only a relatively few firms hanue 70 percent of the exports from this country, 
■> there i> a need for financial help to the many smaller companies. 

Tbe second amendment calls on President Reagan to fill the next vacancy on the 
bank's five^nember board with a i>erson representing small business. The overall 
■nthnization measure, of course, still has to clear the Banking Committee and win 
the approval of the fiill House and Senate, not to mention receiving the President's 
■gn^ure. But, given the logical and reasonable nature of the Kaptur amendments, 
the legialation merits approval all down the line.# 

• Blr. Dicks. Mr. Speaker, I commend my colleagues for adopting 
the Senate amendment to this supplemental appropriations confer- 
atoe report, and in particular, would like to emphasize the impor- 
tance m the international Hnancing institutions to American em- 
ployment 

As my colleagues know, I have been a strong supporter of the 
Export-unport Bank during my career in Congress. The legislation 
we considered today provides a 3-year reauthorization for this insti- 
tution, expands thie Bank's coverage to enhance access for small 
bosinees, and will assist American industry in competing on equal 
trams with our world trading partners. Eximbank's most recent 
iiTiniiiil report shows that every dollar authorized for Eximbank 
loans, guarantees, and insurance generates $1.45 in export sales. 
That means that Exim's current authorization of $4.4 billion in 
direct loans and $9 billion in guarantees generates $19 billion in 
export sales. Using the Commerce Department's estimates, which 
indicate that $1 biUion in export sales supports 25,000 mein-years of 
employment, that $19 billion in sales backed by the Eximbank will 
■nroort 475,000 man-years of employment. 

I am pleased that the Congress has clarified the Bank's mandate, 
aofdiasizing that the Bank is to provide competitive financing as 
its primai7 goal. Recently, the Bank has been reluctant to match 
competitive nnancing provided by other nations. This has effective- 
ly disarmed the strongest weapon in our trade arsenal. The action 
taken by the Congress today will m£ike that mandate clear to the 
Director of the Bank. 



yGoot^le 



304 

On the housing issues, I commend Chairman St Germain for his 
perseverance in dealing with the administration and the Senate. 
When the issue appeared deadlocked, the chedrman did not give up, 
but continued to press for Senate action. We have not had a hous- 
ing authorization bill for several years; enactment of this le^la- 
tion is a real achievement for both the Congress and the adminis- 
tration. 

Finally, Mr. Speaker, I am pleased to see that this bill breaks the 
impEisse that has occurred over the extension of the Defense Pro- 
duction Act. Ab you may recall, the Committee on Appropriations 
voted to approve a modest DPA program for fiscal year 1984. The 
administration had requested $200 million in the 1984 budget for 
procurement of domestically produced atrat^c metals and other 
materials, and although we did not feel there was enough informa- 
tion about the program to justify that amount, vre did feel it was 
time to reopen this important authority and to finally do some- 
thing about this country's dangerous reliance on foreign sources of 
strat^c and critical minerals, metals, and other materials. 

Unfortunately, the committee's proposal for $50 million in DPA 
funding for 1984 came to the floor after the basic authorization htid 
expired on September 30, and the proposal was deleted on a point 
of order. 

The parliamentary difficulty that occurred does not alter our 
desire to see this program go forward. Certain preliminary assess- 
ments are currently being made by the Department of Defense con- 
cerning the potential for our country to produce some of the miner- 
eils and metals we now buy almost exclusively in Central and 
Southern Africa. Since we need to know this information in order 
to assess the desirability of producing these materials in this coun- 
try, we would hope that these assessments will continue and that 
the Department will be ready early next year to provide us with 
the information we will need to act on this matter. 

Again, 1 commend my colleagues for adopting this amendment. 
Thank you, Mr, Speaker.9 

• Mr. BiAGGi. Mr. Speaker, I rise today with a mixed reaction to 
the proposal before us this afternoon. As has been discussed, this 
vote if approved will mean not only that the very fine housing bill 
which was H.R. 1 will be passed — but also the hi^ly controversial 
funding for the International Monetary Fund [IMF] will also be ap- 
proved. 

Simple fact of life is— I am a firm supporter of the housing por- 
tion of this conference report largely because it does provide for 
some increases In funds for public housing both in terms of housing 
starts and assistance to those in need. Further the bill will provide 
for increases in funds reserved for the section 202 pn^am for the 
elderly and handicapped. 

I am especially pleased that an amendment I authored to the 
House passed bill has been retained in this final I^fislation. This 
amendment would allow elderly and disabled residents of federally 
funded and subsidized housing to own and keep pets. 

I authored this legislation as the chairman of the Subcommittee 
on Human Services of the House Select Committee on Aging when 
it was brought to my attention that many elderly find disabled citi- 
zens were being threatened with eviction simply because of pet 



yGoot^le 



305 

ownenhip. Studies have shown, and statistics have proven, that pet 
owneTship can be beneficial to the psycholc^cal, emotional, and 
physical well-being of elderly and disabled people. For many, a pet 
is the only companion they have, the only protection and the only 
link to the outsule world. 

My amendment is not one without responsibilities, however. Re- 
alizing that landlords have a right to act in the case of destruction 
of property or in the case of any disturbances to other tenants in 
the building, my amendment provides a necessary balance of re- 
sponsibility. The landlord has the right to remove the pet should it 
become a threat to the health or safety of occupants in the build- 
ing. The landlord also has the right to set up guidelines, upon con- 
sultation with the tenants, that takes into consideration such fac- 
tore as size of pet, financial obligations of the pet owners, density of 
population of the building and the standards of pet care. My 
amendment seeks to bring together the responsible pet owner and 
the reasonable landlord. 

Let me conclude with the observation that I remain opposed to 
the inclusion of both the authorization and appropriations neces- 
sary to increase the U.S. contribution to the International Mone- 
tary Fund. I consider this to be an unwise and excessive invest- 
ment of funds — an amount which could exceed $8.4 billion at a 
time when we are struggling to correct problems at home caused 
by massive cutbacks in spending — and while we tackle a Federal 
deficit problem which has grown quite severe. 

The simple fact is that in the eyes of our constituents, whether 
they be from the Bronx or anywhere, I do not see the wisdom of us 
spending this money at this time in this way. 1 am inclined to 
agree at this time not only because of the amount we are spending, 
Imt because of the occasiontil poor investment decisions made by 
the IMF. 

I will vote for this bill because I believe the good in it does out- 
wei^ the bad. Housing is a desperate need in many aretis of our 
Nation and after 2 years of abdicating our reponsibilities in the 
field of housing we have a chance to reverse this trend. This bill 
will do so. However let the record show that I opposed to the IMF 
provisions in this bill and strongly so.s 

• Mr. Whttten. Mr. Speaker, more than a year ago, our Commit- 
tee on Appropriations was called upon to write the jobs bill. We did 
that effectively, as a start toward trying to work out of our depres- 
sion by increased production, substituting productive work with 
Bomething to show for our efforts, instead of merely providing for 
more vreeka of unemployment compensation, which had grown to 
$32,000,000,000 a year, which however essential to the recipient 
does not add wealth. 

I supported the housing bill and other measures which passed 
the House of Representatives to get us back to looking toward more 
mn'k, enabling our people to provide for themselves what is 



I have made a close study of the need to give some relief to the 
insent international credit and threatened bankruptcy of many 
eoDntries, where we are the principal creditor. I have studied histo- 
ly. Such a situation existed as far back as World War I. 



yGoot^le 



I do believe that what we do here may be just postponing a show- 
down and that it may be that we cannot avoid the situation getting 
worse. 

I do believe it well, however, to postpone — in the hope that we 
can get world flnances straightened out — that it may help us to get 
our finances in shape. 

Foreclosing on what is owed us if possible and it is not apparent- 
ly would bring in little but lead to default there than here. When 
we do this, I truly believe we must pull our horns, slow down mili- 
tary spending to real defense and get back in production, restore 
and develop our Nation's resources — for that is our real wealth. 

I truly hope I am right in voting for this amendment to the sup- 
plemental appropriations bill from our committees 
• Mr. Oberstar. Mr. Speaker, those of us who oppose the $8.4 bil- 
lion increase in U.S. participation in the IMF are faced with a diffi- 
cult decision today because the IMF quota increase has been at- 
tached to important housing legislation. 

I have not changed my opposition to the IMF quota increase. The 
large multinational banks should bear the brunt of their own un- 
sound banking policies. These banks have made risky short-t«rm, 
high-interest loans to financially questionable nations in the hope 
that the Americsm taxpayer will bail them out when these highly 
profitable loans turn into liabilities. They ought to work out tneir 
problems in the marketplace, under customary financial terms. 

The administration is fisking the American people to bail out the 
large multinationtil banks, while ignoring the plight of 9.9 million 
unemployed Americans. It has failed to come to the rescue of 
family farmers who lost their farms when they could not meet 
mortgage payments. 

The administration is now ready to come to the rescue of the big 
banks, with the American people footing the bill. The IMF quota 
increase will not solve the debt problems of debtor nations having 
trouble meeting their loan payments. It will merely provide a quick 
fix solution which will permit large multinational banks to contin- 
ue earning exorbitant profits, and paying little In the way of taxes. 

The interest rate charged to many Latin American countries by 
the large multinational banks is approximately 2 percent higher 
than the prevailing rate. These large banks also receive a 1.14-per- 
cent avereige rate of return on their assets in Latin America com- 
pared to 0.46 percent on assests in the United States. 

The IMF quota increase should not have been attached to l^isla- 
tion which provides funding for much needed housing aid emd com- 
munity development grants. H.R. 3959 restores a substantial por- 
tion of assistance cut by the Reagan administration. The cuts have 
severely hampered the economic development efforts of our Na- 
tion's cities and small towns. We must act today to reauthorize 
community development block grants and urban development 
action grants for nscal years 1984, 1985, and 1986. Earlier this 
year, during House consideration of H.R. 1, I worked with my col- 
league from Illinois (Mr. Durbin) to assure that small cities with 
high unemployment would be eligible to compete for UDAG's. I am 
pleased that this bill reflects our concern for those cities and towns 
around the Nation which have been hardest hit by the Reagan re- 



yGoot^le 



307 

Our Nation's public housing stock is rapidly deteriorating. The 
Reagan administration recenUy announced a list of surplus hous- 
ing for the poor; however, closer examination showed that, in reali- 
ty, the administration could not find a single Federal housing pro- 
gram with a surplus. This legislation would reverse the indi^'er- 
ence of this administration to Federal housing prc^ams for the 
poor and would bring the Federal Government back into the hous- 
ing market to fulfill its obligation to our Nation's needy, to provide 
housing for the elderly, handicapped, and low-income persons. 

Because of my strong support for these housing and community 
development programs, I must support H.R. 3959. I do so reluctant- 
ly because of the IMF quota increase.9 

• Mr. Fauntroy. Mr. Speaker, I rise in reluctant support of the 
rule that has us voting on a supplemental appropriations bill 
which combines appropriations for the International Monetary 
Fund, the Export-Import Bank, the Inter-American Development 
Bank, the Asian Development Bank and Fund, the African Devel- 
opment Fund, and most importantly, a significant housing bill. 

I wish to make it very clear that I am not completely satisfied 
with the language in section 804 with regard to the IMF. The com- 
promise language on South Africa, while not insignificant in posing 
a requirement on the U.S. Executive Director with respect to any 
Gountiy practicing apartheid in the world, is not language that I 
would have preferred. That languE^e states: 

Hie Congress hereby finds that the practice of apartheid results in severe con- 
ttnintB on labor and capital mobility and other highly inefficient labor and capital 
np^y rieidities which contribute to balance of payments deficits in direct contra- 
*'^-— of the goals of the International Monetary Fund. Therefore, the President 



(mat, an 



Aall instruct uie United States Executive Director of the Fund to actively oppose 
HIT facility invalving use of Fund credit by any country which practices apartheid 
■nlMB the Secretary of the Treasury certifies and documents in writing, upon re- 
and BO notifiCB and appears, if requested, before the Foreign Relations and 
r( g, Housing and Urban AfTaira Committees of the Senate and the Banking, 
nuance and Unmn AfTain Committee of the House of Representatives, at least 
tmmty-aae days in advance of any vote on such drawing, that such drawing: (1) 
VDUlil reduce the severe constraints on labor and capital mobility, through such 
■rann as increasing access to education by workers and reducing artificial con- 
■Itainta on worker mobility and substantial reduction of racially-based restrictions 
geographical mobility of labor; (2) would reduce other highly inefficient labor 
ipital supply rigidities; (3) would benefit economically the majority of the 



Id the Secretary not meet a request to appear before the aforementioned 

Oanunittoca at least twenty-one days in advance ol^ any vote on any facility involv- 
ing uae of Fund credit by any country practicing apartheid and certify and docu- 
nent in writing theee four conditions have been met, the United States Executive 
Dinctor shall vote against such program. 

I would have preferred the language that was in the House 
passed bill on the IMF because that original language would not 
permit an administration to come here and tell us without affirma- 
tive action on the part of the Congress that loans to such countries 
■hould be authorized. That language was ably crafted by our distin- 
guished colleagues. Congressmen Jerry Patterson and Julian Dixon 
and I commend them for their courage. I also want especially to 
thank the chairman of my full committee, Mr. St Germain, for pro- 
fiding tiie leadership that does give us an important precedent 
that will restrict the ability of the administration to support IMF 



yGoot^le 



drawings for countries practicing apartheid. There has never previ- 
ously been any \angaage at all attached to the IMF with regard to 
apartheid sind 1 want to publicly thank Chairman St Germain for 
holding fast on this issue of vital importance to our nationsil inter- 
est. Unfortunately, the other body insisted on the language that we 
have before us. 

Mr. Speaker, the overriding importance of the housing authoriza- 
tion bill contained in the supplemental appropriation compels me 
to support the rule, the authorization, and the appropriation. We 
will fight another day on the issue of our country's relations with 
South Africa. Let us pass the rule, the authorization, and the ap- 
propriation. • 

• Mr. Corcoran. Mr. Speaker, I rise today in opposition to the 
supplemental spending bill which has been returned to this body 
from the Senate with the highly objectionable IMF-housing legisla- 
tion attached. If proponents of the International Monetary Fund 
believe that linking the U,S.-IMF contribution to such a very di- 
verse issue such as housing somehow legitimizes or changes the 
large IMF quota increase, they are mistaken. 

I would like to point out to my colleagues that we are consider- 
ing the same issues that we did with the IMF in August. The legis- 
lation still contains a total $8.4 billion to "bail out" banks who 
have made and will continue to make imprudent loans to countries 
who are ill-equipped to even absorb interest payment on their 
loans. 

Third World countries continue to request additional funds, 
while failing to fulfill obligations to alter the economic practices 
which necessitated IMF assistance in the first place. The IMF is 
doing a disservice to these countries and the other Fund members 
by perpetuating the myth that financial assistance alone will solve 
economic problems which have been festering for years. 

In addition, Congress considered the initial IMF request believ- 
ing that no additional funding requests would be made in the next 
few year. A recent meeting of the International Monetary Fund in 
Washington confirmed what many anticipated. The IMF will not 
be back in 3 years, or even 2 years. The United States along with 
other member countries will be considering this issue again next 
year. I ask. my colleagues to consider the implications of a yearly 
IMF increase which is by agreement to take place every 5 years. 
The United States is not alone in believing that the problems 
facing the IMF are far deeper than monetary levels. 

While I vigorously oppose the IMF quota increase contained in 
this bill, and encourage my colleagues to oppose the measure, I 
would like to see our U.S. -IMF representatives push for a serious 
reexamination of the goals of this organization. I would like to see 
this organization become a valuable economic educator and fuiEm- 
cial resource while losing its current identity as an "unconditional 
world banker."* 

• Mr. Bereuter. Mr. Speaker, this Member supports H.R. 3959 
which includes the Domestic Housing and International Recovery 
and Financial Stability Act authorizing domestic housing programs 
and fulfilling U.S. pledges to the International Monetary Fund and 
the multilateral development banks. This legislation has the full 



yGoot^le 



m iyort of the administration and includes the strict regulation 
ain oversi^t of private bank lending overseas. 

^liB legislation is vitally important for the American farmer in 
that the IMF plays a criti^ role in expanding trade, including the 
e^ort of American farm products. Almost 1 out of every 3 acres of 
American farmland produces food for export. 

Exports of wheat and com, among other crops, have balanced to 
a lax^ degree our vei? expensive oil import bill. According to the 
latest information available, agricultural exports from my State of 
Nebraska amount to more than $2.1 billion per year and account 
far the approximate equivalent of 24,000 jobs. 

Over the last several years, however, the international debt crisis 
has adversely affected the American farm community because de- 
letoping countries can no longer afford large-scale food imports. 

From the period 1981 to 1982 U.S. exports of yellow com fell by 
$2^ billion — a one-third drop. Grain sorghum and wheat exporte 
also fell by one-third, costing our farmers about $1.5 billion in lost 
nles. Without IMF financing for these countries, the drop would 
have been even larger and their economic recovery is dependent 
more than ever upon concessional lending and IMF assistance. 

TTie measure before us also contains funding for severfil raultilat- 
«al development banks including The Inter-Americem Develop- 
ment Bank, The Asian Development Bank and The African Devel- 
opment Fund. 

It also contains as well, provisions requiring the Treasury De- 
partment to report on how the Banks can play a more active role 
m encouraging private companies and investors to support worth- 
riiile development projects. 

HUs report will be of great use to those of us on the Banking 
CiRamittee who would like to see the Banks encourage private 
bank loans and foreign investment flows in countries where the 
multilateral assistance fedls short of meeting their capital function 
requirements. 

Continued funding of these Banks serve important U.S. foreign 
poli^ interests. Most of the MBD loans are concentrated in coun- 
tries or areas of special interest to the United States. In 1980, for 
(sample, key U.S. allies including Brazil, Turkey, Korea, Egypt, 
and Pakistan, received a large share of this multilateral aid. 

In these and other countries, multilateral aid serves long term 
U.S. economic and security interest at the same time that it pro- 
motes market-oriented economic reforms. The MDB's also help to 
ithmilate world trade and have been an important factor in ex- 
panding U.S. exports to Third World countries. 

Furthermore, U.S. contributions to the MDB's benefit the U.S. 
economy. For every dollar in sales of U.S. goods and services to the 
MDB's, there is a multiple effect of an extra $3 added to the U.S. 
gnas national product. Over the past several years, for every dollar 
actually paid in to the Banks, we have exported $1.50 worth of 
goods eina services. Clearly, continued strong support of the mutila- 
teial development banks is in the national interest of this country. 

President Reagan calls the Fund the "linchpin" of the world fi- 
nancial system. It is that, but it is also much more than that: 
The Fimd is a key element in our foreign policy. 



yGoot^le 



310 

The IMF is important to the economic well-being of Americans, 
both those who work in our factories and on our farms. 

On reflection, we find the objections to the Fund to have little 
merit. 

Foreign policy: In the past year Fund assistance has been crucial 
for Mexico, Brazil, and Argentina. The economic pressures on these 
countries have indeed been very heavy. Without the financial re- 
sources mobilized by the IMF from U.S. and foreign sources, friend- 
ly regimes might have been replaced and domestic stability woidd 
certainly have been jeopardized. Surely, these large countries are 
as important to the United States as the smaller ones of Central 
America and the Caribbean where we have sent troops and U.S. 
foreign aid. 

As to those of my colleagues who are strong supporters of assist- 
ance to Israel and Egypt, I would point out too that these two coun- 
tries are undergoing serious economic difficulties at present and 
are prime candidates for IMF concessionail financing. Yet the Fund 
will have no further resources if we do not provide this quota in- 
crease by the end of this month. 

Numerous U.S. allies in Africa eind Latin America are also likely 
to need balance-of-payments financing from the Fund in the near 
future. Do we want to reject this quota increase today in the name 
of fiscal austerity only to face much larger foreign aid expenditures 
or loans to our financially depressed allies in the coming year? 

U.S. economy: The Fund is playing a positive role in the U.S. eco- 
nomic recovery. By lending its own funds and by inducing the com- 
mercial banks to keep on lending, the IMF helps to finance U.S. 
exports. The importance of this to the U.S. economy can by seen by 
a few numbers. From 1981 to 1983, the U.S. trade balance (exporte 
minus imports) fell by $21 billion. Almost all of this net loss ($19 
billion) can be said to be due to trade difficulties caused by econom- 
ic problems in Latin and other Caribbean Nations. The full reper- 
cussions of such a drop in the trade balance result in a $30 billion 
contraction in U.S. gross national product and caused the direct 
loss of hundreds of thousands of jobs in the United States. 

The IMF also plays a key role in avoiding defaults on the over- 
seas debt owed to American banks. So long as the IMF and the 
commercial banks are making new loans to foreign countries they 
will have the incentive to avoid defaulting on their debts. If they 
did default, or, more likely, declare a moratorium on payments on 
their debts, the loss in income might cause some banks to fail and, 
more certainly, would cause the banking system fis whole to cut 
back sharply their lending to U.S. business. The Federal Reserve 
could meet the problem by providing liquidity to the banks but this 
would raise the specter of renewed infiation. Moreover, bfinks 
would have to curtail lending even if the Federal Reserve Board 
acted quickly, and interest rates would rise. The result would be a 
financial panic with disastrous results for our citizens and Nation. 

The objections: There are several major objections to IMF quota 
increase. Let us briefly consider the most commonly cited. 

It is asserted that the commerical banks made imprudent loans 
and are now being bailed out by the Fund. It is easy in hindsight to 
say that the loans were excessive. Perhaps the banks should have 
foreseen that the deepest U.S. recession since the depression of the 



yGoot^le 



311 

thirties would occur at a time of high oil prices and high interest 
rates. They did not. The did make loans primarily to those develop- 
ing countries with a history of sustained economic success. 

Two-thirxls of all bank loans to developing countries went to Ar- 
gentina, Brazil, Mexico, and South Korea. As the noted interna- 
tional economist Rohert Solomon points out, Brazil's real gross na- 
tional product grew by almost 9 percent per year over the 19T0's; 
Mexico s grew by 6.4 percent and South Korea's by 10 percent. And 
tbe rate of increase in their exports, a good measure of their ability 
to service foreign debt, grew even faster. The figures in real terms 
ibr the 1970'8 are impressive: Argentina, 10.7 percent per year; 
Brazil 9.1 percent. Mexico 10.9 percent, and South Korea 25.3 per- 
cent. In short, lending to these countries must have seemed like 
good business in the 19T0'b. 

Nor is the DVIF bailing the bfinks out. IMF loans to a country are 
being made on condition that the private banks increase their 
loEUis to that country. Moreover, the entire proposed increase in 
the IMF resources could pay off only 10 percent of the $350 billion 
owed by developing countries to private banks. 

It is asserted that much of the $8.4 billion would go to Commu- 
nist countries. Recent experience suggests otherwise. In the 12 
months ending April 30, 1983, the IMF loaned $14.8 billion but 
only $499 million (3 percent of the total) went to a Communist 
country, Hungary. Latin America, on the other hand, got $11.8 bil- 
Ikhi, or 80 percent of the total. Clearly, the IMF is supporting an 
area of the world of strategic and economic importance to the 
United States. It does so by using foreign as well as U.S. loan re- 
■ources. 

Mr. Speaker, I, therefore, urge the speedy adoption of this vitally 
important piece of l^islation.9 

GENERAL LEAVE 

Blr. Long t^ Louisiana. Mr. Speaker, I ask unanimous consent 
that aU Members may have permission to revise and extend their 
ranarks on House Resolution 379 until the last edition of the Con- 
gressional Record for this session of Congress is published. 

The Spkaker pro tempore. Is there objection to the request of the 
gentleman from Louisiana? 

There was no olgection. 

Ur. Long of Louisiana. Mr. Speaker, I move the previous ques- 
tim on the resolution. 

The previous question was ordered. 

The Speaker pro tempore. The question is on the resolution. 

The question was taken; and the Speaker pro tempore announced 
that the ayes appeared to have it. 

Mr. Dannbheyer. Mr. Speaker, on that I demand the yeas and 

The yeas and nays were ordered, 

^le vote was taken by electronic device, and there were — yeas 
286, nasrs 186, not voting 22, as follows: 



yGoot^le 





312 






[Roll No. 532] 






YEAS-226 




Ackennan 


Pascell 


Lowry(WA) 


Addabbo 


Fazio 


Lman 
Luken 


Akaka 


Fish 


Alexander 


Foi^(TN) 


Lundine 


Andrews (NO 


MacKay 


Andrews (TX) 


Markey 


Anthony 


Marriott 


Aspin 


Forwthe 
Fowler 


Martin (NO 


AuCoin 


Martin (NY) 


Bedham 


Frank 


Matoui 


Barnard 


Frenzel 




Barnes 


Froet 


Mazzoli 


Bartlett 


Fuqua 


McCandless 


Bateman 


Garcia 


McDade 


Bedell 


Gaydoe 


McEwen 


Beilenson 


a£"" 


McHugh 


BereuUr 


McKeman 


Berman 


Gephardt 


McKinney 


Sir. 


Gibbons 


McNulty 


Gilman 


Mica 


Boega 
Bolind 


Glickman 


Michel 


Gore 


MineU 


Boner 


Gradison 


Mitchell 


Bonior 


Cray 


MoakJey 


Bonker 


Gre^n 


Moody 


Borski 


Guarini 


Boucher 


lallON) 


Morrison (WA) 


Boxer 


lamilton 


Murtha 


Britt 


Harkin 


Natcher 


Brown (CA) 


Harrison 


Ne^ 


Burton (CA) 


latcher 


Nowak 


Campbell 


iJ^ 


O'Brien 


Carper 


Dakar 


Chandler 


lar- 


Oberatar 


C3ieney 


Obey 


aarke 


lorton 


Ottinger 


ainger 
Coelho 
CWemandX) 


loward 


Owens 


KE^ 


Oxley 
Patterson 


Collins 


Hyde 


Pease 


(Enable 


reland 


Pepper 


Conte 


Jefforda 


Porter 


Conyers 


Johnson 


Price 


Coo^r 


Jones (NO 


Pritchard 


Coughlin 


Kaptur 


Pursell 


Cbyne 


Kennelly 




Oockett 






Davis 


Kogovaek 




de la Garza 


Kostmayer 




Dellums 


AFalce 




Derrick 


.agomarsino 




DeWine 


Lantoa 


Roe 


Dickinson 


Latta 


Rose 


Dicks 


Leach 


Rostenkowski 


Dingell 


Lehman (CA) 




Dixon 


Lehman (FL) 


&" 


Downey 


Leiand 


Dwyer 


«nt 


Savage 


Edgar 




Sawyer 


Edwards (AL) 




Sch^er 


Edwards (CA) 


fl^^? 


Schneider 


Erienbora 


Schumer 


Evans (lA) 


Lowery (CA) 





yGoot^le 



aikanki 


%wke 


Williams (OH) 


Smitb(FL) 


Wirth 


aniUKIA} 


Torrea 


Wolpe 


Smith (NJ) 


TVirriceUi 


Wortley 


SDOwe 


Towns 


Wright 
Wyden 


&dlR 


Udal) 


Spmtt 


Vander Jagt 


Wyiie 


9t Germain 


Vento 


Yates 




Wajman 


Young (MO) 


Stokes 


Weiss 


Zablocki 


Stntton 


Wheat 


Zechau 


Studds 


WhitehuTBt 




9mft 


Whitten 

NAYS-186 




Alborta 


Plorio 


Miller (CA) 


Anderaon 


FranUin 


Molinari 


Applegate 


Gingnch 


Mollohan 


Areher 


Goiualez 


Montgomery 


Bitea 


Goodling 


Moorl 


Bennett 


Granun 


Moorhead 


Bethune 


Gunaeraon 


Mrazek 


Bilii«ki« 


Murphy 


BUky 


Hall (OH) 


Myere 


BoKb 


HaU, Ralph 


Nelson 


Bnaiu 


Hall. Sam 


Nielson 


Brooks 




Olin 


Bnomfield 


Hansen (ID) 


Packard 


Brown (CO) 


Hartnett 


Panetta 


BnvhUl 


Hefner 


Parris 


Bryint 


Hertel 


Pashayan 


BnitanflN) 


Hiler 


Patman 


Bnon 


HopUns 


Paul 


Smey 


Huckaby 


Penny 


CbiT 


Hughes 


Perkins 


Ouppell 


Hunter 


Petri 


Qui^e 


Hutto 


Pickle 


CMta 


JactriM 


Rahall 


Cdeman (MO) 


Jenkins 


gfd 


Courter 


Jones (OK) 


Cnig 


Jones (TN) 


Richardson 


Cnne, Daniel 


Kasich 


Hitter 


Crane. Philip 


Kastenmeier 


Roberts 


[TAaiouni 


Kazen 




Uiel 


Kemp 


Roemer 


(umemeyer 


Kildee 


Rogers 


Dwden 


Kolter 


Roth 


IhKhto 


Kramer 


Rowland 


luib 


Leath 


Russo 


Dixmelly 


Levitas 


Schaefer 


Dorpu) 


Lewis (FL) 


Schroeder 


Dnfdy 


Lipinski 


Schuire 


IW 


Lloyd 


Sensenbrenner 


Dooeui 


Loefller 


Shannon 


Durbin 


Long (MD) 


Sharp 


Djwn 


Lott 


Shaw 


i!^ 


Lungren 


Shelby 


Eck^ 


Madigan 


Shumway 


BihmrdatOK} 


Marlenee 


Shuster 


Down 


Martin (ID 


SiUander 


&^ 


McCain 
McCloekey 


Sisisky 
Skeen 




McCollum 


Skelton 


^' 


McCurdy 
McGrath 


Slattery 

Smith (NE) 


fid& 


Mikulski 


Smith. Denny 



yGoot^le 



Smith, Robert 


Taylor 


Weaver 


ffi™ 


Thomas (CA) 


Weber 


Thomas (GA) 


Whitley 
Whittaker 


Sriiia 


Trailer 


»" 


Valentine 
Vandergriff 


Wilson 
Winn 


Stenholm 


Volkmer 


Wise 


Stump 


Vucanovich 


Wolf 




Waigren 
Walker 


Yatron 


Tailon 


Young (AK) 


Tauzin 


Watkins 

NOT VOTING-22 


Young (FL) 


Annunzio 


Hansen <UT) 


Nichols 


Bevill 


Hawkins 


Ortiz 


Clay 


Holt 


Binaldo 


Corboran 


Lewis (CA) 


Rudd 


DymaUy 


Mack 


Simon 


Ferraro 


Martinez 


Williams (MT) 


FmtKHD 


Miller (OH) 




Hance 


Minish 





D 1530 

The Clerk announced the following pairs: 

On this vote: 

Mr. Hawkins for. with Mr. Bevill against. 

Mr. Minish for, with Mr. Nichols against. 

Mr. Dymally for, with Mr, Williams of Montana against. 

Mr. Crockett chtuiged his vote from "nay" to "yea." 

So the resolution was agreed. 

The result of the vote was Einnounced as above recorded. 

A motion to reconsider was laid on the table. 

The Speaker pro tempore. Accordingly, the Senate amendment 
to the House amendment to the Senate amendment numbered 11 
to the bill, H.R. 3959, is agreed to. 



yGoot^le 



Titles I Through V of the Domestic Housing and 
International Recovery and Financial Stability Act 

I would like to explain several of the major provisions of the 
Housing and Urban-Rural Recovery Act of 1983 as provided by this 
amendment. 

TITLE I — COMMUNITY DEVELOPMENT PROGRAMS 

Community development block grants 

The $3,468 billion is authorized for each of the fiscal years 1984, 
1985 and 1986, It was almost exactly two years ago that the Admin- 
istration first proposed regulatory changes to the Community De- 
velopment Block Grant Program that threatened to weaken the 
empnasis this pn^am has historically placed on community devel- 
opment activities that principally benefit low and moderate income 
families. Since HUD was unwilling to retain the existing regula- 
tiona that assured the m^ority of the funds spent under the pro- 
gram would be used to benefit the less economically fortunate 
members of a community, Congress has been forced through this 
l^islation to clarify the basic intent of the program. States and en- 
titlement communities may propose one, two or three year commu- 
nity development plcms; fifty-one percent of all funds spent in a 
State or in an entitlement community over the period specified in 
such plans must principally benefit low and moderate income fami- 
lies. If CDBG funds are used to finance public improvements in 
whole or in part, families of 50 percent of median or below may not 
be assessed for ^eir share of the cost and families between 50 and 
80 percent of median may be assessed for the non-CDBG share of 
the cost only if the community's CDBG grant is insufficient to 
cover the assessment. Low and moderate income families are de- 
fined for both the States and the entitlement communities similar- 
ly to the assisted housing definition as families of 80 percent of 
area median income or below. 

I^e statute defines eligible activities and how certain activities 
are to be considered to principally benefit low and moderate 
income families; these provisions apply both to entitlement commu- 
nities and to small cities receiving funds from either HUD or the 
State. Although States may establish criteria and priorities rele- 
vant to selecting small city applications on a competitive basis, 
they may not forbid the use of CDBG funds for any activities de- 
fined as eligible under the statute. 

The bill clarifies the responsibility of each small city receiving 
funds to identify its housing and community development needs 
(including the needs of low and moderate income residents) and the 
activities designed to meet those needs. This provision should be 
implemented in a simple and reasonable manner, taking into ac- 
count tiae limited resources and personnel available to small cities. 
(315) 



37-922 O - 84 - 



yGoot^le 



316 

Like entitlement grantees, small cities must also agree to minimize 
displacement, affirmatively further fair housing and provide citi- 
zens the opportunity to assist in the development of the grant pro- 
posal. While each small city is not required to meet the 51 percent 
low income benefit test, States should encourage or give priority to 
applications that will meet or exceed that test in order to eissure 
that the State as a whole will be able to comply with the principal 
benefit requirement over the 1-, 2- or 3-year period of the State's 
plan. 

The bill contains various provisions designed to assure that enti- 
tlement communities that have lost population according to the 
1980 census or lost their classification as central cities continue to 
be considered entitlement communities for an additional 2 years. 
Any unit of general local government that becomes eligible to be 
classified as a metropoHtian city for fiscal year 1984 or 1985 while 
its population is included in an urban county may continue to be 
considered part of the urban county for fiscal years 1984 and 1985 
and if a new three-year cooperation agreement pursuant to Section 
102(d) is entered into during those fiscEil years, it will continue to 
be classified as an urban county for the period of such agreement. 

Urban development action grant 

The $440 million is authorized for each of the fiscal years 1984, 
1985 and 1986 for the Urban Development Action Grant program 
and the extent of unemployment, job lag or surplus labor will be 
included in the UDAG eligibility criteria for small cities just as the 
extent of unemployment has been considered for entitlement com- 
munities. No small city that was eligible for a UDAG in fiscal year 
1983 shall lose its eligibility until it is determined whether it will 
qualify for assistance when the unemployment, job lf% or surplus 
labor criteria are issued. 

Urban Homesteading and 312 Rehabilitation Programs 

The single family Urban Homesteading Program has been re- 
vised to assure that the benefits to this program will accrue to low 
and moderate income families whose primary opportunity for 
homeownership lies in homesteading this program. By requirii^ 
the property to be transferred for free, by providing up to three 
years for all repairs other than those posing a substantial danger 
to be completed, and by giving priority to applicants whose current 
housing is inadequate and who pay over 30 percent of their income 
for shelter, low and moderate income families whose primary re- 
source is their own and their friends' labor, will be offered the op- 
portunity to become homeowners. The Multifamily Urban Home- 
steading is also structured to assure that not less than 75 percent 
of the occupants following rehabilitation or conversion will be 
lower income families. While $12 million is authorized for this pro- 
gram in fiscal year 1984, it is expected that funds for the rehabili- 
tation of these buildings will he available from the Section 312, 
CDBG, the new rental rehabilitation grants and private reso\irces. 
By extending the Section 312 program for fiscal year 1984, Con- 
gress explicitly permitted HUD to establish a priority only for Uie 
use of these funds in conjunction with the Urban Homesteading 
Program. HUD is not permitted to require the linkage of 312 loan 



yGoot^le 



funds with any other federal pn^am. Participating communities 
may in their discretion use 312 loan program for single family or 
miiitifiiTnily rehabilitation. 

TITLE U — ASSISTED HOUSING PROGRAMS 

Budget authority 

The bill provides that the amount of budget authority which may 
be obli^t^ for all the HUD assisted housing programs, including 
the new rental rehabilitation and production program, is increased 
by $9.9 billion on October 1, 1983, and by such sums £is may be ap- 
proved in appropriation acts for fiscal year 1984. 

Amiated housing tenant rents 

One of the m^or items directly related to the issue of affordabil- 
ity of assisted housing is the tenant rent contribution. In an effort 
to reduce federeil spending in 1981, the Administration raised the 
contribution requirement from 25 to 30 percent of adjusted income. 
Regulations proposed in 1983 would have limited deductions from 
income to $400 per child and $300 per elderly household. The con- 
cern cf the House has been that these increases place an unwar- 
ranted Rnancial burden on families and individuals who can least 
afford it. 

While the agreement retains the 30 percent rent to income ratio, 
it establishes more equitable adjustments to income: $480 per 
family member under 18 years of age or who is 18 years or older 
and is either disabled or a full time student; $400 per elderly Euid 
handicapped family; medical expenses in excess of 3 percent of 
annual income for each elderly and handicapped family; and child 
care expenses to the extent necessary to enable another family 
member to be employed or pursue an education. 

Operating subsidies 

It is the intent of Congress that the Department of Housing and 
Urban Development (HUD) shall continue to use a Performance 
Funding System in establishing public housing operating subsidy 
levels, and that the system shall be based upon current PFS. In ad- 
^tion to taking into account the character of projects, local condi- 
tions and the character of households served. Congress expects that 
HUD will consider the impact of distressed local conditions on op- 
erating costs and should adjust operating subsidies to account for 
the impact of such distressed conditions. It is also intended that 
HUD make such adjustments as are necessary to account for 
under-and over-prediction of inflation in operating costs in making 
annual adjustments to PFS, and that such adjustment shall be 
made in such a way eis to minimize disruptions to the PHA budget 
[dannin^ process. In addition, there is a need to provide incentives 
to housing authorities to increase their 0[>erating income. HUD 
[^Illations and policies reflect an intent to maintain or increase 
incentives in this area. It is not the intent of the Committee that 
HUD penalize efficient management recapturing income received 
by PHAs in excess of the amounts contained in their approval 
budgets, unless explicitly provided for in regulations that include 
definitions of "excess" income, procedures for calculating such 



yGoot^le 



"excess," and methods and timetables for recapturing such 
"excess." Several PHAs have been very aggressive in making 
timely investments in pursuing utility rate aqjustments ^m their 
States and succeeding in court suits that add to their income. 
Given the precarious state of the operating budgets of many 
PHA's, these aggressive management steps should be rewarded and 
should not be penalized through the memipulation of the PFS 
system, of regulations or of policy directives to the field. 

Comprehensive modernization 

The bill does not change existing stetutory provisions concerning 
the Comprehensive Improvements Assistance Program (CIAP), 
since Congress continues to support the provisions of the current 
statute which emphasize the intent of the program to assist local 
Public Housing Authorities (PHAs) in carrying out comprehensive 
programs of modernizing their public housing developments, in 
order to guarantee the long-term social and ^ysiceil viability of 
public housing developments. To this end, we expect comprehensive 
modernization to be given the highest consideration for funding by 
HUD, eifter emergencies are funded, wherever this is the expr^sed 
priority of the local PHA, In all cases, HUD should give clear rec- 
ognition to the modernization needs identified by local PHAs when 
making funding decisions under CIAP, whether the needs be emer- 
gency, special purpose or comprehensive modernization. It was not 
the intent of Congress at the time of enactment of the CIAP stat- 
ute, nor is it now, to limit special purpose modernization funds 
solely to energy conservation improvements, nor to give priority to 
items which only produce reductions in PHA operating costs and 
operating subsidies. Because of the usual nearly year-long delay in 
funding emergency items, such items should be interpreted by 
HUD to mean not only those produced by an immediate, already- 
existing crisis, but also those work items which are considered nec- 
essary by the PHA in order to prevent such a crisis from occurring 
within the very near future. Any evaluation of the proposed bene- 
fits of CIAP expenditures, for purposes of prioritizing HUD alloca- 
tions, shedl be carried out in accord with the purpose of long-term 
project viability, safety and habitability not solely in terms of 
short-term cost-savings. Comprehensive applications should be 
ranked against other comprehensive applications in making fund- 
ing determinations, rather than against special-purpose applica- 
tions. 

In this bill, we are continuing the public housing development 
program but, as an accommodation to Senate concerns, we have 
provided that additional public housing units can be develoiied by 
new construction only where such is ' less costly than acquisition 
or acquisition and rehabilitotion would be." T^is assessment must 
include the cost of the fund that will be established to finance 
m^or repairs that may not be necessary when the building is ac- 
quired, but will be necessary within five years of acquiBition in 
order to assure the long-term viability and habitability of the 
project. Plainly, the bill means that any existing structures, to 
which the Secretary refers in determining whether or not proposed 
new construction is less costly, must be in the same general neigh- 
borhood Eis the proposed new construction, be avauable for pur^ 



yGoot^le 



319 

e and be capable of getting local approvEil. Moreover, these pro- 
ns ahall not apply to any project for which a PHA has, prior to 
January 1, 1984, in any way appued to HUD for funds or initiated 
any local process leading to an application to HUD for funds. 

Otiier provisions in tne bill allow the Secretary to increase the 
amount of single person occupancy in any public housii^ authori- 
ty's inventory of assisted housing to 30 percent of the units. Priori- 
^ for housing assistance is given to families paying more than 50 
percent of family income for rent. 

Provisions in the House and Senate housing bills concerning pet 
ownership in assisted rental housing are included in this ^"ee- 
ment. An elderly or handicapped tenant may not be prohibited 
from owning a pet or be denied occupancy because of pet owner- 
ship in assisted nousing. Regulations will be issued outlining rules 
fisr keeping pets emd the types of pets allowed. 

Demolition and disposition of public housing 

With r^ard to the demolition an disposition of public housing, 
the Committee does not intend to encourage the sale of public 
housing projects. The Committee intends for public housing to con- 
tinue to serve those who are most in need — low income families 
and elderly persons. The demolition or disposition of these extreme- 
ly vital housing units should only be undertaken as a last resort 
and only if each and every condition for such transactions have 
been met. 

The bill authorizes the Secretary of HUD to approve the sale of a 
public housing project if the property's retention is not in the best 
interest of the tenants or the public housing agency, or because the 
disposition allows the acquisition, development or rehabilitation of 
other properties for low income persons. It is expected that the sale 
of a project not be approved unless there is an assurance that there 
is a strong possibility replacement units will in fact be made avail- 
able and plans for such replacement housing are established. 
Funds must be available, commitments made and local government 
approval obtfiined prior to the approval of a sale. 

The bill provides that proceeds from the sale of a public housing 
project be used to retire the debt incurred for the development or 
modernization of the project. Any funds remaining from the sale 
may be used for the acquisition, construction or modernization of 
other public housing projects. The Committee does not intend for 
the proceeds of a sale to be a substitute for ClAP modernization 
fundfi. The Committee is also of the opinion that the modernization 
of vacant public housing units does not satisfy the one-for-one re- 
placement requirement in the current regulations or should the 
modernization of public housing units be considered to meet the 
housing authority s obligation in this new statute to maintain the 
aame total amount of low income housing stock. 

Again, it must be emphasized that the demolition or sale of any 
pubfic housing project in this country should only be permitted as 
a last resort. This bill is intended to set standards limiting the cir- 
cumstances under which public housing can be demolished or oth- 
erwise disposed. It is our intention that the standards in this bill be 
folly enforceable by tenants, tenants councils and through certifica- 
tion by local government officials. 



yGoot^le 



320 

Recognizing the particular dilemma of many individuals who are 
homeless and the demands placed upon local governments to meet 
their needs, there is $60 million authorized for emergency shelter 
grants. These grants will be used to provide shelter and essential 
services for individuals facing life-threatening situations due to the 
lack of housing. Awards will be made on the basis of the extent of 
need, taking into consideration the special needs of families and 
single women. 

The HUD Secretary is authorized to carry out a child care dem- 
onstration program in lower income housing projects. The prt^ram 
will operate in areas where units of local government have provid- 
ed Community Development Block Grant funds for the renovation 
of public housing facilities and the operation of child care services. 
The program shall be designed to determine the extent to which 
these services facilitate the employability of public housing resi- 
dents. The program will operate in public housing agencies where 
child care services do not exist, should involve the parents of chil- 
dren benefiting from the program, and should employ in part-time 
positions elderly individuals living in the project. At the end of two 
years, the Secretary shall report to the Congress on the demonstra- 
tion program with recommendation for a permanent pn^ram. 

Section 202 elderly or handicapped housing 

The section 202 loan program is smiended to include a 9.25 per- 
cent interest rate limitation for fiscal year 1984. A project financed 
under this section may contain a maximum of 25 percent efficiency 
units. Nonprofit sponsors of 202 housing projects for the elderly 
and handicapped would be permitted to determine the bfisis of con- 
tractor selection if the loan amount is less than $2 million, or the 
project rentals will be less than 110 percent of the fair market 
rentals applicable to projects for the elderly and hemdicapped, or 
the sponsor is a labor organization. The fair market renttds for 
projects for the elderly and handicapped assisted under section 202 
are 105 percent of the fair meirket rentals applicable to other 
projects. The terms of this provision in the bill are predicated on 
the continuamce of a differential in fair market rentals between 
elderly find non-elderly projects at least as great as the differential 
that currently is in effect. 

HUD/HHS housing quality demonstration 

The Secretary of HUD is authorized to carry out a demonstration 
progrsim to encourage the upgrading of housing occupied by lower 
income families, especially those receiving public assistance, and to 
provide better coordination between the Department of HHS and 
HUD at the local levels to provide decent, affordable housing. 
Grants will be made to states, local governments, and agencies. 
Funds may be used to provide techniral or finacial eissisfaance to 
property owners to upgrside housing projects, temporary housing 
assistance to families currently not receiving it, housing counseling 
and referral and other housing related services, and administative 
expenses. The Secretary shall transmit an interim report on the 
implementation of the demonstration program and a final evalua- 
tion report to Congress. 



yGoot^le 



321 

Public housing lease and grievance procedures 

The bill establishes in statute the standards that must be imple- 
mented in any public housing lease and grievance procedures. The 
intent of these provisions is to require each public housing agency 
to establish an administrative procedure under which tenants will 
be advised of the specific grounds of any proposed adverse action; 
have an opportunity for a hearing before an impartial party; have 
an opportunity to examine documents related to the proposed 
action, be entitled to representation of their choice; be entitled to 
ask questions of witnesses and have others make statements on his 
or her behalf; and be entitled te receive a written notice in a time 
specified on the proposed action. These actions are aimed at provid- 
ing individuals with basic due process protections. For more than a 
decade, HUD has required that PHAs conduct fair administrative 
hearings before goii^ to court to evict a tenant. This HUD require- 
ment was based on Supreme Court and other federal appellate 
court decisions interpreting the due process clause of the Constitu- 
tion. HUD recently proposed regulations that would exempt the 
PHAs from this obligation. The purpose of this section is to make 
clear that a PHA may be exempted from that obligation only 
where HUD has determined that the court hearing which the 
tenant would be given would provide the basic elements of due 
process. These basic elements have been identified by the courts 
and by HUD regulations [Goldberg v. Kelly. 397 U.S. 254 (1970); 
Kingv. Housing Authority, 670 F. 2nd 952 (11th Cir., 1982); 24 
C.F.R. Section q66.53(c)] and have been included in the standards 
specified in the statute for PHA administative hearings. 

If a Housing Authority considers that it should be allowed this 
exemption, the Authority must make a request of HUD giving 
notice of the request to its tenants and other interested persons. 
HUJD should provide tenants and others with an opportunity to be 
beard with respect to the propriety of granting the request. HUD 
must make these decisions with respect to each court system or 
level in each state, scrupulously ascertaining whether the due proc- 
ess elements are provided in each court. State-by-state determina- 
tions will not suilice, because urban courts often provide protec- 
tions that are not available in rural areas. 

Section 235 homeownerskip 

The Section 235 homeownership program is extended through 
fiscal year 1985. Any new contracts entered into after September 
30, 1983, under this section may not be made for more than a ten 
year period. If a family continues to need assistance beyond the ten 
year limitation, the Secretary may continue assistance payments 
from a revolving fund established in this bill. 

Section 236 and Rental Supplement Programs 

Tlie bill contains provisions to assure continued adequate fund- 
ing for State-financed, non-FHA insured projects assisted with Sec- 
tion 236 rental assistance payments and Section 101 rent supple- 
ment payments for the remainder of their assistance contract 
tenns by mandating sufficient payments by HUD each year to 
cover fiilly 90 percent of necessary rental increases and changes in 



yGoot^le 



322 

tenant incomes for all units in each project covered by the assist- 
ance contract. These actions, where applicable, should be made on 
a timely basis for all units covered by contracts under these sec- 
tions. The Secretary shall use any recaptured authority under 
these sections due to conversion of contracts to section 8 assistance 
for the purpose of providing assistance under existing section 236 
and section 101 contracts. In the case of recaptured Section 101 au- 
thority not being required to cover assistance under that section, it 
should be used to cover assistance under the section 236 program. 

Section 8 New Construction Program 

As of January 1, 1984, the bill repeals the authority for Section 8 
new construction and substantial rehabilitation assistance that is 
not used in conjunction with the Section 202 program. Any funds 
appropriated for the Section 8 new construction and substantial re- 
habilitation program prior to that date are to be used pursuant to 
those authorities and the requirements of those sections will, of 
course, continue to apply to any units already constructed or reha- 
bilitated pursuant to those authorities. 

Section 8 fair market rents 

The bill does not contain a statutory description of the rents that 
must be taken into account in establishing the fair market rents 
for the existing Section 8 program since regulations have recently 
been issued which reflect a compromise between HUD's initial fair 
market rent proposal and the language included in H.R. 1. The 
present formula establishes fair market rents at the forty-fifth per- 
centile of all rents for decent, safe and sanitary housing occupied 
by recent movers, excluding public housing and units built within 
the last two years. It is with the understanding that the Secretary 
will not deviate from the present formula in a way that results in 
lower fair market rents, the House agreed to eliminate statutory 
language. However, it is expected that the Secretary will revise 
these rentfi annually so that they reflect accurately current rental 
market conditions. 

Section 8 voucher demonstration 

The $242 million is authorized for a demonstration of approxi- 
mately 15,000 housing vouchers to be provided to families whose 
income is 50 percent of median or below, or have previously lived 
in federally assisted housing. The Secretary shall establish a pay- 
ment standard based on the fair market rent established for the ex- 
isting Section 8 program. The monthly assistance payment for any 
family is the amount by which the payment standard for the area 
exceeds thirty percent of the family s monthly adjusted income or 
ten percent of the family's gross income. 

Substantially all of the authority is to be used in conjunction 
with the new rental rehabilitation program, for families displaced 
by the new rental construction program or in conjunction with the 
new FmHA rural housing preservation grant program. 

The assistance payment may, at the discretion of the public hous- 
ing authority, be adjusted twice in five years to assure that the low 
income family participating in the program can continue to afford 
the rental unit. To cover the cost of such adjustments, each Euuiual 



yGoot^le 



contributionB contract with the public housing authority will pro- 
vide ntiTuml contributions equal to 115 percent of the estimated ag- 
negate amount of assistance needed during the first year of the 
five-year contract. The total amount of any adjustments that are 
made within the five-year period plus the iissistance payments ac- 
tually paid may not exceed the total annual contributions provided 
in the contract for the five-year period. Any amounts not needed 
for adjustments may be used by the public housing authority for 
additional vouchers. 

It is expected that HUD will closely monitor this program and 
report r^ularly to Congress on its impact. Of particular concern is 
whether low income families will have to pay more for decent shel- 
ter and whether large ftimilies, in particular, will have greater dif- 
ficulty in finding such shelter than under the existing Section 8 
program. ChT importance also is the extent to which vouchers pro- 
vide mobility to families to locate adequate shelter outside areas in 
which they presently reside. Any reports should provide compari- 
sions between the two pn^ams in communities that contain vary- 
mg proportions of low income residents and difTering vacancy rates 
for moderately priced rental housing. 

TITLE ni — BENTAL REHABIUTATION AND DEVELOPMENT GRANTS 

The Rental Housing Rehabilitation and Development Program 
has 2 components. One component is designed to make rental reha- 
bilitation grants to units of general local governments and states to 
aid in rehabilitation privately owned rental housing stock. The 
other component is to make available to certain areas of the coun- 
tiy that have a severe shortage of affordable rental housing, devel- 
opment grants to subsidize the cost of new construction and sub- 
stantial rehabilitation. 

A total of $615,000,000 is authorized for this new program in 
1984 and 1985. Out of this total $150,000,000 will be spent on the 
F^abilitation component of the program for both 1984 and 1985, 
while $200,000,000 will be available for the development grant com- 
pment in 1984 and $115,000,000 will be available in 1985. These 
amounts are expected to assist approximately 60,000 units of rental 
rehabilitation (30,000 in 1984 and 30,000 in 1985) and a total of 
28,249 units with development grants, (16,666 units in 1984 and 
9,583 units m 1985). 

In order to assure very low income tenants the opportunity to be 
housed under the rental rehab program, 15,000 housing certificates 
are provided. It is expected that these certificates will be used pri- 
marily to support the rehabilitation program developed by the 
grantee by enabling many very low income tenants to remain in a 
itructure that is improved, as well as to provide housing assistemce 
to those who for any reason may be displaced by either the reha- 
Ulitation or development program. 

Rental Rehabilitation Program 

The program structure for the rental rehabilitation component is 
similar to a block grant. Allocations will be made by formula to 
cities over 50,000, urban counties and states, all of which will ad- 
minister the program and distribute the grants. 



yGoot^le 



324 

A formula designed by the Secretary will take into consideration 
such factors as low income renter population, overcrowding of 
rental housing, the extent of physically inadequate housing stock 
and other objectively measurable criteria that the Secretary deter- 
mines may be useful in accurately determining the needs for reha- 
bilitation funds around the country. 

The rehabilitation program provides for establishing a minimum 
allocation level below which the conduct of a local progrsun would 
not be feasible. If a city or urban county is by formula allocated 
less than a minimum amount, these amounts would be added to 
the allocations for the States where the relevant cities and counties 
are located. 

After 1984 an annual performance adjustment will be made by 
the Secretary up to 15 percent above or below the prior year's allo- 
cation, depending on the grantee's progress in meeting program re- 
quirements and in achieving the goal that at least 80 percent of the 
units rehabilitated must have rents that would be affordable by 
lower income families. Affordable rents are those which lower- 
income families can pay with 30 percent of their adjusted incomes. 

While the grantee will not be required to submit an application 
for approval, the grantee will be required to provide a program de- 
scription to the. Secretary that will contain a description of their 
rental rehabilitation program, including a proposed schedule of 
carrying out these activities, a certification that the public was in- 
volved in developing the program, a statement of procedures and 
standards that govern the selection of the projects and other infor- 
mation necessary to assure that the rehabilitation program is 
achieving its goal. 

The rehabilitation program requires that a number of key re- 
quirements be met. The grants can only be used in Eu%as where the 
median income is 80 percent of the community's median income or 
below. Rehabilitation is limited to correcting substandard condi- 
tions, to make essential improvements, and to repair major systems 
in danger of failure; 100 percent of the funds must be used for the 
benefit of low income families, except in some cases this require- 
ment could be reduced in order to enable the project to be feasible; 
the maximum amount of Eissistance per unit is 15000 but may in- 
cresise in high cost areas with the Secretary's approval; and the 
grant assistance cannot exceed 50 percent of the total cost to reha- 
bilitate a structure. In addition, the owner of each building receiv- 
ing assistance must agree not to (1) discriminate against families 
because they receive or are eligible for any housing assistance or 
(2) convert the building to a condominium or a cooperative that is 
not a limited dividend cooperative 10 years after the rehabilitation 
is complete. 

Because one of the greatest needs in many areas of the country 
is the lack of decent and safe housing for families, and in particu- 
lar large families, it is expected that the Secretary in distributing 
funds in both the rehabilitation and the development program wiU 
assure an equitable distribution to these families. Since many of 
the substandard units in our nation are occupied by very low 
income families, projects containing such units will be given a pri- 
ority in the rehabilitation program. 



yGoot^le 



325 

Deoeli^ment Grant Pix^ram 

The need for new or substantially rehabilitated rental units in 
many parts of the country is severe and the development grant 
component is intended to aid these areas of the country experienc- 
ing such a Mortage. The Secretary is required to set these stand- 
ards for area eligibility based on such factors as the extent of pov- 
erty, the extent of occupancy of physically inadequate or over- 
crowded housing by lower income families and other housing dis- 
tress factors. Since some areas may not be eligible for development 
Emts because they don't meet the housing distress standards but 
ve a particular project that cannot be carried out through mod- 
erate rehabilitation, the Secretary may consider an application 
from these areas in order to meet special housing needs or to sup- 
port a special neighborhood preservation purpose. 

A grant application must contain certain information, including 
a description of the project and its production timetable, certifica- 
tion Uiat the public was consulted about the project, a statement as 
to how the grantee will select the project taking into account the 
extent to which Federal funds will be efficiently used, how the 
units will be maintained and the rents will be maintained at levels 
that are affordable for the low income tenants and other criteria 
the Secretary may prescribe. 

In order to assure that low income families are assisted under 
this program and to assure an adequate leveraging of private in- 
vestment with federal funds, certain requirements must be met 
under the rental development program. These include: requiring 
Urat for at least 20 years, at least 20 percent of the units in a struc- 
ture must be occupied or available for occupancy by families whose 
incomes do not exceed 80 percent of the area medium; using grant 
assistance only to develop real property for residential purposes; 
Igniting grant assistance to 50 percent of the total costs of the de- 
velopment, acquisition or rehabilitation; and prohibiting assistance 
if it involves involuntary displacement of very low income families 
1^ moderate income families. The landlord may not discriminate 
against tenants who are eligible for or are receiving other housing 
aasistance (such as existing section 8 or vouchers) or those with 
dtildren and may not convert units to condominium or coop owner- 
ihip during the 20-year period from time of initial occupancy. 

Once eligible areas are designated and the grantee submits 
looject applications to HUD, the Secretary then must select the 
pra>)ectB to be funded. The selection criteria include: the extent of 
the severity of the shortage of decent rental housing opportunities 
in the project area; the extent to which nonfederal public and pri- 
vate funds reduce the amount of development grant money needed; 
how projects contribute to neighborhood development and mitigate 
displacement; the past performance of the applicant community in 
meeting assisted housing needs; the number of units developed for 
the least cost to the Federal Government, taking into account a 
number of factors, including cost difTerences among areas, among 
financial alternatives and among types of projects and tenants 
bang served. 

A critical selection criteria is the extent to which a mechanism is 
established to assure the maintenemce of affordable rents for lower 



yGoot^le 



326 

income families for the required 20-year period. Possible mecha- 
nisms include establishing a reserve account with part of the cap- 
ital grant or with excess rents collected from unsubsidized tenants, 
or any other means to accumulate sufficient funds to lower rents 
for the subsidized tenants. An affordable rent is a rent that does 
not exceed 30 percent of a family's adjusted income. This criterion 
is intended to establish Congress preference for projects which pro- 
vide that the lower income units are Eiffordable to a range of lower- 
income families, including very low income families, ensuring that 
no lower-income family pays more than 30 percent of its adjusted 
gross income for rent. Although the amount of subsidy provided 
should be enough to make the rents for the lower-income units af- 
fordable by a family earning 50 percent of the median income, Con- 
gress does not anticipate that the rents of all of the lower income 
units will be at this level, regardless of whether the family's 
income is 35 percent of median income or 75 percent of median 
income. Rather, Congress believes that the 30 percent rent to 
income ratio established for other lower-income housing programs 
should apply to the lower-income units produced by this prt^ram 
as well. The selection criteria are designed to reward prop(»als 
which provide for such a rent structure, and which will set aside 
more than 20 percent of the units in any project for low income 
families. The financial feasibility of the project must be considered 
in the selection process and the Secretary must also consider in se- 
lecting projects the equitable distribution of the assistance to 
assure that families including large families are housed under this 
program. The ability of large families to find adequate shelter is a 
serious national problem and the intent of this new program is di- 
rected to this situation. 

From among the projects selected by the Secretary based on 
these criteria the Secretary shall give a priority to projects that 
will provide more than 20 percent of the units for occupeincy by 
low income families, as well as a priority for projects in areas with 
lengthy waiting lists for those in need of housing assistance, and 
for projects in areas where families may have Section 8 certificates 
but must look for an excessive length of time to locate suitable 
housing. 

There is no fair market rent established for the units expected to 
be occupied by families below 80 percent of the area mediitn 
income but the rent provision requires that the grantee must ap- 
prove the project rents for those families and these rents cannot be 
more than 30 percent of the adjusted income of a family whose 
income equals 50 percent of the median income for the area. It is 
expected that a project will have a mechanism as described in the 
selection criteria to help house those families whose income may be 
below 50 percent of median as well as to assure that these lower 
income families pay no more than 30 percent of their adjusted 
gross income for rent. 

If the program requirements are violated during the 20-year 
period beginning on the date on which 50 percent of the unite are 
occupied or completed either the owner or his or her succeeeor 
must repay to the grantee the assistance provided plus the simple 
interest thereon except that after the 10 years the amount to be 
repaid shall be reduced 10 percent per year for each full year after 



yGoot^le 



327 

year 10. The grantee iB expected to use any money recovered be- 
cause of the Niforcement provision to provide additional assistance 
for low income families. 

The bUl provides that the assistance provided under the program 
shall constitute a debt, payable if the owner fails to carry out the 
agreements, and shall be secured by security instruments provided 
t^ the owner to the grantee. It is not intended to imply that the 
assistance provided for these projects shall be considered recourse 
loans. A provision requiring that assistance for moderate rehabili- 
tation be in the form of recourse loans weis contained in the origi- 
nal Senate bill, but was dropped after extensive discussions on the 
present bill. Having dropped if for moderate rehabilitation, it was 
not intended to reconstitute that requirement in the development 
program. Congress intends that the advance of the subsidy to the 
owner can be secured by a security device such as a subordinate 
lien on the project. It is not intended that this lien would have a 
priority over the prim£iry security instruments for the financing of 
the project. 

The amount of assistance to be provided would be the leeist 
amount needed to provide afTordable and modestly designed hous- 
ing for families that are imable to find other reasonable and afford- 
able housing in the private market. 

The bill provides for a State rental rehabilitation program but 
the States can only carry out the activities under this program in 
cities with populations of less than 50,000 and in urban countries 
and cities that receive less than the minimum allocation. The State 
has the option to run its own rental rehabilitation program or may 
distribute funds to units of general local government. If a State 
opla not to run a rehabilitation program the Secretary has the au- 
thority to do so. 

When the State is administering such a program the State must 
comply with the program requirements, as well as any other crite- 
ria of the program, and units of general local government that run 
a proeram must certify to the States that they are in compliance 
with uie requirements. 

A provision contained in the Rental Rehabilitation and Develop- 
ment Program would prohibit the imposition of any rent require- 
ments on structures assisted under these programs except where 
Bu^ requirements or other agreements, were entered into pursu- 

t to a State or local law enacted prior to the effective date of this 



prosram. 
The Coi 



! Congress has debated rent control exclusively in the past 
several years. The bill reported out of the Senate Banking Commit- 
tee conteiDed a provision prohibiting the imposition of rent con- 
trols on any unit assisted under the rental rehabilitation and devel- 
opment pr<^am. An attempt to replace this provision with a 
rldfather provision was narrowly defeated, on an 8-8 tie, and 
provision was not debated on the Senate floor. 
In the House, the Banking Committee has a long history of re- 
jecting anti-rent control proposals, and this year an anti-rent con- 
trol amendment was defeated twice on the House floor. The com- 
pnnnise provision contained in the bill recognizes the autonomy of 
Qiose junsdictions which have enacted rent regulations over their 
local nousing markets. It adopts the langueige contained in the 



yGoot^le 



Senate program, but grandfathers jurisdictions with State or local 
laws providing for the imposition of some form of rent regulations. 

In adopting this provision, communities have been grandfathered 
and not Just specific statutes. The grandfather provision is intended 
to cover not simply existing statutes, but also extensions, re«nact- 
ments, or amendments to these statutes which occur after the ef- 
fective date of this program. 

In order to assure the modest design of the project, the meuti- 
mum mortgage amount for the project may not exceed the amount 
insurable under Section 207 of the National Housing Act. State and 
local bonds issued to finance eligible projects could qualify as Sec- 
tion 11(b) tax-exempt bonds. Davis-Bacon wage standards will also 
apply to projects developed with assistence from this program. 

The Secretary is required to undertake a review and audit annu- 
ally to determine that the grantee is carrying out its activities in a 
timely manner and the grantee must provide a performance report 
annually to the Secretary including information dealing with the 
program's cost effectiveness, the type and income levels of tenants 
who benefit from the program, any tenant displacement and any 
other information the Secretary may require. While this provision 
requires owners to supply verifiable data to the grantee with 
regard to tenant income, household size, and other pertinent demo- 
graphic information, the intent of the performance report is to fa- 
cilitate Congressional oversight and we could not want these re- 
quirements so stingent that they could in any way hamper the ef- 
fective functioning of this program. If the owner shows the Secre- 
tary that his ability to obtain the information is not practical, the 
Secretary may consider other data useful in providing information 
for effective Congressional oversight of this program. And third the 
Secretary must provide a report to Congress as to the grantee's 
progress under this program. 

If a mortgage on a property which is rehabiliteted or developed 
under this program is insured under 223(f) of the National Housing 
Act, it may also be governed by the coinsurance requirements es- 
tablished by Section 244 of the National Housing Act, which is 
amended for this purpose to provide that: (1) insurance benefits 
shall equal the sum of (A) 90 percentum of the mortgage on the 
date of institution of foreclosure proceedings (or on the date of ac- 
quisition of the property otherwise after default), and (B) 90 percen- 
tum of interest appears on the date benefits are paid; (2) the mort- 
gagee shall remit to the Secretory, for credit to the General Insur- 
ance Fund, 90 percentum of any proceeds of the property, including 
sale proceeds, net of the mortgagee's actual and reasonable costs 
related to the property and the enforcement of security; (3) pay- 
ment of such benefits shall be made in cash unless the mortgagee 
submits a written request for debenture payment; and (4) the un- 
derwriter of coinsurance may reinsure 1() percentum of the mort- 
gage amount with a private mortgage insurance company or with a 
stete mortgage insurance agency. In the case of any purchase or 
refinancing of a property eligible for rental rehab grants under 
Section 223(f) of the National Housing Act, the Secretary may in- 
clude rehab or development costs up to $20,000 per unit, but this 
may be increased by 25 percent by the Secretary and subordinated 
liens securing up to the full amount of mortgage financing provid- 



yGoot^le 



ed by State or local governments or agencies thereof smd pay bene- 
fits in cash unless the mortgage submits a written request for de- 
benture payment. 

TFFLE IV— PROGRAM AMENDMENTS AND EXTENSIONS 

The authority for the Federal Housing Administration Mortgage 
Insurance Programs is extended for two years. This is not in keep- 
ing with the practice of prior years, but because of the complexities 
involved in developing a multifaceted housing bill and in view of 
the difRculties involved in peissing such a bill, to two-year exten- 
sion as proposed in the Senate bill was adopted. The adoption of 
this provision is not intended to signal either a lack of concern or a 
retreat in the Congress' commitment to housing and community 
development programs, but rather a recognition that consistency 
and stability are needed and a two-year extension is the best policy 
at this time. 

The FHA insurance Hmit is set at $50,900,000 for both 1984 and 
1985. 

The provision to eliminate the requirements that FHA interest 
rates be set by law is included in this title as identical provisions 
<m this issue were in the Senate and House bills. 

FHA minimum property standards 

The bill provides the Secretary of HUD the discretion to insure 
single and multifamily buildings if they meet standards established 
in nationally recognized building codes or local codes that the Sec- 
retary has determined are comparable to the nationally recognized 
axles. It is essential that the Secretary carefully review local codes 
to determine that standards affecting health and safety are as ef- 
fiective as those assured through nationally recognized model codes. 
Since the existing FHA minimum property standard is clearly 
equivalent to a nationally recognized model building code, if build- 
ers choose to build according to that standard, they may do so. In 
any case, the Secretary retains the discretion to require that all 
buildings insured by FHA meet minimum property standard estab- 
lished by the Secretary. 

Manufactured homes 

The insuring authority for manufactured homes is expanded in 
this bill and the Title I loan limits for manufactured homes are in- 
creased. 

Single-family mortgage insurance on Hawaiian homelands and 
Indian reservations 
The requirements for single-family mortgages under the Nation- 
al Housing Act are modified to permit such mortgages on Hawai- 
ian Homelands and Indian Reservations. 

Digcretionary authority to regulate rents or charges 

Secretarial authority to regulate rents under section 207 of the 
National Housing Act is eliminated, but only for those mortgages 
insured by the Secretary after the date of the enactment of this 
Act The mandate of the Secretary to regulate rents will remain on 



yGoot^le 



those mortgages presently insured as landlords were aware of this 
provision when entering the program and those tenants presently 
residing in such housing entered into leases with the understand- 
ing that rent levels would be reviewed by the Secretary. 

Insurance of alternative mortgage instruments 

A demonstration program for alternative mortgage instruments 
is included in this bill. The alternative mortgage instruments in- 
cluded in this program are indexed mortgages, adjustable rate 
mortgages and shared appreciation mortgages. While the Secretary 
will have the authority to insure such mortgages, the aggregate 
amount of these instruments cannot exceed 10 percent of the ag- 
gr^ate number of mortgages insured by the Secretary in the previ- 
ous Hscal year. While the Committee still believes that it is impera- 
tive that the FHA program retain the long-term fixed rate mort- 
gage as an anchor of stability in the ever changing and complex 
nnancial market for homebuyers there appears to be a need to 
permit prospective homeowners to utilize, on a limited basis, some 
of the new mortgage instruments being offered. The bill also cre- 
ates a new insurance program for multifamily housing shared ap- 
preciation mortgages, but sets a limit under this section to 5,000 
units in each fiscal year. 

The idea of including the home equity conversion mortgage for 
the elderly under the FHA programs was rejected for a number of 
reasons, but mmnly because there is no evidence to show that this 
type of mortgage is in the best interest of the elderly homeowner 
nor that the federal government should be in a position of encour- 
aging or supporting such mortgages at this time. A number of dem- 
onstration pro-ams are being conducted around the country and 
the Secretary is directed to evaluate the use of this type of mort- 
gage and to report back to Congress in one year. 

Flood and Property Insurance Programs 

The Flood Insurance Program has been continued for two years 
until September 30, 1985, and there are to be no premium in- 
creases on flood insurance from the date of enactment of this Act 
until after September 30, 1984. 

The Crime Insurance Program has been continued for one year 
while the Riot Insurance Program will expire November 30, 1983. 

Secondary mortgage market 

The absence of the provisions approved by the House in H.R, 1 
for FNMA and FHLCM in no way reflect a lessening of support for 
these changes but rather a decision by the Senate not to accept any 
secondary market provisions unless changes in the securities laws 
for private mortgage backed securities were included. However, the 
securities law changes are not within the jurisdiction of the House 
Banking Committee and thus could not be included. 

FNMA and FHLMC are vitally important to housing, especially 
for low and moderate income families and it is intended that they 
continue to play the critical role of providing credit for our nation s 
homebuyers. Any attempt to curtail this role for either FNMA or 
FHLMC will not be entertained and their role may well increase in 
the coming years. 



yGoot^le 



TTTLK V— RURAL HOUSING 

Tlie Rural Housing Amendments of 1983 extend the rural hous- 
ing assistance programs for 2 years and provide for 2-year funding 
authorizations in amounts necessary as approved in appropriations 
Acts, except for the new rural housing preservation grant program 
which contains a specific 2-year authorization for appropriation of 
$100 million for each year. In providing for these authorizations 
and extending the existing rural housing assistance programs in 
this manner, the Congress has recognized that several of the alter- 
natives for providing such Eissistance through the states at far 
lower levels are not appropriate to meet the nature and extent of 
the need in the rureil areas of the nation. This level of assistance is 
critical to very low income rural families and in the areas of the 
nation that are most rural in character. Thus, provisions are in- 
cluded throughout these amendments to more effectively target 
and give priority to very low income persons and families in 
making the housing assistance available in rural aresis. 

Other provisions included in these amendments make the Farm- 
ers Home Administration rural low and very low income housing 
assistance provisions more uniform with those operated by the De- 
partment <^ Housii^ and Urban Development; streamline and ex- 
pedite application processing and provide new authority to use 
cost-effective approaches in meeting the rural housing needs, in- 
cluding the use of energy efficient manufactured housing. 

This amendment provides that the definition of rural low and 
very low income families and persons is the same as that used for 
the purposes of the United States Housing Act of 1937, which is re- 
spectively SO percent or less and 50 percent or less of the area 
median income. In addition, the terms income and adjusted income 
as used in the rural housing programs are revised to mean the 
same as those terms mean in that Act. In addition provisions are 
included to conform to the Department of Housing and Urban De- 
velopment requirements, the amounts required to be contributed 
b; tenants for rent in housing assisted by PmHA with respect to 
amount of income, deductions, and limitations on rental increases, 
lliese provisions are designed to make uniform the low and very 
low income and related criteria utilized for federal housing Eissist- 
ance purposes in both rural and urban areas of the nation. 

The Section 502 rural homeowner assistance program is amended 
to provide that not less than 40 percent of the homes eissisted na- 
tionally and 30 percent in each state shall be for persons and fami- 
lies having incomes of 50 percent or less of the area median 
income. The Congress expects that with such strict targeting re- 
quirements the FMHA will utilize its subsidy authority to the full- 
est extent to meet these targets but not ignore the serious housing 
needs of persons and families above these income levels but below 
80 percent of the area median income. 

Given the concern of FmHA that homes financed for low income 
families cost as little as possible to operate particularly with re- 
spect to utility use, the bill permits manufactured homes to be fi- 
nanced only if they meet energy conserving requirements estab- 
lished by FmHA that take into account the geographical location of 
the home and Eire cost-effective over the life of the building or the 



37-922 O - B4 - 



yGoot^le 



loan, whichever is shorter. Until the FmHA issues regulations that 
are specifically designed for manufactured homes, such homes may 
be financed if they meet the ener^ conserving requiremente 
FmHA hs silready established for site-built homes. More specifical- 
ly. Section 502 and Section 515 loans or insurance are extended to 
manufactured housing units including the lots on which they are 
located which meet the basic Title VI Federal manufactured hous- 
ing standards, the FHA insurance requirements of the Department 
of Housing and Urban Development with respect to installation, 
structural and site standards and which meet the Farmers Home 
Administration enei^ conservation requirements for site-built 
housing until such requirements are established by the FmHA for 
manufactured housing. Also, this provision directs the Secretary of 
Agriculture to establish energy conservation requirements that 
minimize operating costs and which are cost-effective over the life 
of the manufactured home or the term of the loan, whichever is 
shorter. Increases in annual loan repayments resulting from added 
energy conservation requirements shall not exceed the saving in 
annual energy costs. The Secretary of Energy, in consultation with 
the Secretaries of HUD and Agriculture, is directed to conduct a 
study and reort to Congress within 18 months from the time the 
Secretary of Agriculture issues regulations governing the energy 
efficiency of manufactured homes. This study shall compare in- 
creased construction costs, actual energy use, and projected energy 
savings of manufactured housing financed by HUD or by FmHA 
with other homes that are insured by both agencies. 

In order to make assistance available under Section 502 to fam- 
lies whose incomes are below that necessary to qualify for a Sec- 
tion 502 loan with full interest credit subsidy but who otherwise 
could meet the financial and related requirements, the Secretary of 
Agriculture is authorized to extend the period of the loan up to 5 
years and thereby reduce the monthly payment to within the 
means of these low income borrowers. Only persons whose incomes 
do not exceed 60 percent of the area median income are made eligi- 
ble for such an extension. The Congress directs the Secretary to im- 
plement this new authority with dispatch. It can benefit many 
rural very low income families without adding to the cost of the 
Federal Government for subsidies. 

Provisions are included to amend the Section 504 home repair 
loan and grant program targeting losais and grants to very low 
income ffimilies and clarifying the repairs and improvements that 
may be financed, including those necessary for sanitary water and 
waste disposal facilities. 

Technical Services and Research activities are strengthened by 
permitting the Secretary to undertake innovative demonstrations 
of housing and building systems under standards that may difler 
from the FmHA minimum property standards. An annual amount 
of not to exceed $10 million is authorized for such demonstrations 
and a report to Congress is required annually on the results of the 
demonstrations undertaken. 

FmHA may provide loans for properties meeting FmHA mini- 
mum property standards, HUD minimum property standards, 
standards contained in any voluntary national code or, in the case 
of manufactured housing that meets HUD's title VI standards, the 



yGoot^le 



properties also meet FmHA energy requirements as provided by 
ttm title. For the purposes of approving applications for loans, 
grants and rental assistance payments, the Secretary may only re- 
quire that a market exists for the persons and families the projects 
are intended to serve. These measures will clarify that Congress in- 
tends applications for FmHA rental housing assistance must be ap- 
proffld when they meet all other requirements if the need for the 
ipediic housing project is demonstrated, without r^ard to other 
hoQsine needs in an area. 

In addition to the above-mentioned rental housing assistance pro- 
gram amendments, the amendment limits rent increases to the 
ieser of the Eunounts necessary for increases in actual operating 
costs or comparable operating costs of other similar housing in the 
am. Increases in approved construction costs are limited by the 
Secretary to only thme resulting from factors beyond the owners' 
control, design changes required bj[ the Secretary or approved 
dtanges in tne financing of the project. For new construction, a 
preference shall be given to projects located on donated land where 
the Secretaiy finds the site suitable and where a project will be 
nnre cost-efiective by locating it on the land donated. In giving 
inference to donated lands, it is not the intention of the Congress 
to ignore the relative housing needs of rural communities. Prefer- 
eoce for donated lands should be provided after analyzing and 
ranking the housing applications based on need. The Secretary is 
required to assure that the management fees charged by a develop- 
er or an affiliate of a developer are not excessive. 
Moderate rehabilitation activities under Section 515 rental hous- 
ing is permitted at a lesser standard than that applicable to new 
nogtniction and substantial rehabilitation and items and systems 
not included in the proposed rehabilitation need not be reouired to 
meet F^nHA minimum property standards but are required only to 
neet appropriate quality and performance standards. Congress ex- 
pects that the Secrettuy will administer this provision so that mod- 
oite rehabilitation includes all rehabilitation activities except 
Suae which involve substantial alternatives of the structural com- 
ponents of a unit. Moderate rehabilitation is expected to be permit- 
ted to be carried out in units which substantially meet the struc- 
ttral requirements of the FmHA minimum property standards. 
The Congress has taken this action to assure that moderate reha- 
lilitation activities will be undertaken in rural areas without re- 
ipiiring ovmers to improve an entire existing building to new con- 
struction standards when only parts of the building may be in need 
of repair. In setting forth these amendments. Congress maintains 
h intention to see that decent, safe and sanitary units are pro- 
duced as a result of the rehabilitation activities without unneces- 
sary added costs to the government or the owner. The amendments 
iko permit FmHA to approve rental housing projects to be located 
(D tcattered sites. The Secretary is prevented from denying direct- 
Ij or through other regulations FmHA rental housing loans on the 
ba^ that rental assistance payments may be required in a pro- 
posed project. 

In permitting the Secretary to make rental housing loans avail- 
aUe in projects which will receive aissistemce from a State or local 
(pvemment similar to FmHA rental assistance payments, the Con- 



yGoot^le 



gress intends to encourage the participation of the States and IoceJ 
governments in meeting the needs of low and very low income 
rural families. For this reason, it has provided that the assistance 
need only be pledged for a 5-year term and appropriated by the 
States or local governments annually. However, the ament^ent 
also requires that these jointly assisted projects be determined by 
the Secretary to be marketable without the rental subsidy after the 
term of the initial subsidy and for the remainder of the term of the 
loan. This is to eissure that a project will not become bfinknipt 
without federal rental assistance subsidies if the State or locality 
fails to provide the required subsidy after tlie initial period. In im- 
plementing this requirement, the Secretary should assure that it 
only be used in approving specific State or locally aided Section 515 
loan applications and not extended to the determinations of regu- 
lar Section 515 loan applications thus nullifying other provisions 
included in these amendments with respect to Section 515 and Sec- 
tion 521 application approval requirements. 

In requiring that an applicant demonstrate that an adequate 
rental housing market exists after the initial period of assistance, 
the Congress directs the Secretary not to require a full market 
survey but to accept other reasonable estimates of the future rental 
housing market taking into account that the basic intent of the 
Congress is to encoureige the joint participation of the States and 
local governments with the federal government in providing rural 
rental housing for low and very low income rural families. 

A provision is included limiting to not more than 25 percent the 
units in Section 515 rental projects that may be occupied by per* 
sons and families requiring rental assistance payments other than 
those whose incomes are at or below 50 percent of the area median 
income. However, after the date of enactment of these amend- 
ments, only 5 percent of the units that become available in new 
projects in which rental assistance payments are provided may be 
occupied by low income persons or families having incomes be- 
tween 50 and 80 percent of the area median income. All of the re- 
maining units that become available for occupancy after such date 
must be available only for very low income persons and families 
with incomes of 50 percent or below the area median income so 
long as rental assistance payments funds are available. 

Section 515 is amended to include projects involving scattered 
site and detached units; single family residences that may be pur- 
chased or converted for rental housing; and manufactured home 
rental parks where either the lots or the lots and the homes are 
available for low and very low income persons and ffunilies. 

Not more than 10 percent of the funds available for Section 516 
farm labor housing grants are made available to nonprofit organi- 
zations and public Eigencies that will encourage the development of 
farm labor housing, including housing for migrant farmworkers. 
These farmworkers lack the capacity to package, develop and pro- 
mote housing projects, and local governments in areas in which 
decent farmworker housing is needed have limited resources with 
which to cany out such activities as Congressional hearings and in- 
quiries have shown. For this reason, the funds available from 
FmHA for farmworker housing are often left unspent due to an in- 
sufficient number of queility applications, despite the overwhelming 



yGoot^le 



335 

need for such housing. Therefore, the Congress directs the Secre- 
taiy to utilize this assistance fiilly and witiiout delay so that the 
diagraceful and inhuman housing conditions of these persons and 
Eamiliefl may be appreciably improved. 

Other amendments are included to limit the amount of FmHA 
hoomng loans to that necessary to provide housing of modest size, 
design and cost without impairing the adequate livability of the 
units financed; and to encourage through rehabilitation or pur- 
diase the use ^ existing housing which is economical in acquisition 
and rehabilitation cost, as well as the cost of operating such hous- 
ingby promulgating rules for such purpose. 

llie amendments include a provision that permits any area clas- 
sfied as a rural area eligible for FmHA assistance to retain such 
classification for fiscal year 1985. 

Provisions are included that require the Secretary to prioritize 
the interest credits and rental assistance payments made available 
fiw contracts for assistance. First, the priority should be to renew 
expiring contracts and to add the amounts necessary for contracts 
that have run out of the amounts prior to the end of their terms; 
secondly, to {issist very low income persons and families in projects 
receiving commitments after FY 1983, except that in such projects 
up to 5 percent of the units may be occupied by low income fami- 
ly; and thirdly, for units which become available in existing 
projects, except that 95 percent of such units must be for very low 
income persons and families and 5 percent of low income persons 
and families. Along with other related provisions these provisions 
are designed to assure that the most needy persons and families in 
the meet rural areas are first served with the limited federal finan- 
cial resources available. 

In addition, provisions are included to make more effective the 
F^nHA application processing system, to permit the FmHA to proc- 
ess applications for HUD single fcunily housing insurance, to pro- 
ride that housing subdivision applications for Veterans Adminis- 
tration, HUD or FmHA purposes shall be mutually acceptable so 
that by Janueiry 1, 1984, there will be total reciprocity of subdivi- 
non awlications among these agencies. It is the intent of the Con- 
gress that the Secretary of Agriculture ensures that any subdivi- 
sion approved under the reciprocity provisions have adequate facili- 
ties for potable water and for waste disposal and will meet cost-ef- 
fective energy conservation standards. 

The amendments establish a new program of Housing Preserva- 
tion Grants to private nonprofit organizations, Indian tribes, units 
rf general local government, counties, States and consortia of other 
^igible grantees to rehabilitate single and multifamily housing for 
rural low and very low income persons and families. In addition, to 
nich grants, housing certificates under the HUD Section 8 program 
may beprovided to eligible tenants assisted as a result of this pro- 
gram. The grants may be utilized by the grantees through a varie- 
W of methods to reduce the cost of the repairs and rehabilitation so 
tnat the units provided are affordable by low income families, and 
to tiie extent feasible, very low income persons and families. Provi- 
aums require that there be no displacement of the residents occupy- 
ing the housing to be assisted and that the repairs and rehabilita- 
tion result in FmHA health and safety requirements. 



yGoot^le 



336 

Housing Preservation Grants must be allocated among the States 
on the basis of a formula that takes into account the population, 
the extent of a poverty, and the extent of substandard housing. Al- 
located but uncommitted funds in a State must be transferred to 
the FmHA State office and then may be used for Section 504 very 
low income repair grants or loans. No single grantee in any State 
may be allocated more than 50 percent of the funds allocated to 
that State unless there is only one applicant. 

In order to receive grsmis, otherwise eligible applicants must 
submit a statement describing its proposed rehabilitation pri^ram 
and the activities it proposes to undertake each year and shall 
make the statement available for public comment. Such statements 
must be prepared in consultation with and in consideration of the 
views of appropriate local officials. The Secretary is required to 
evaluate the statements submitted and approve applications on the 
basis of criteria prescribed by the Secretary, including the extent to 
which the activities will assist low income persons lacking ade- 
quate shelter with a priority for very low income persons; the 
extent to which other public and private contributions are involved 
to lower the costs of the repairs or rehabilitation undertaken or 
supplement the federal assistance involved in order to maximize 
the averaging of these federal funds; the extent to which the pro- 
posed activities wil be undertaken in small rural communities or in 
remote parts fo rual areas; the extent to which the most repair or 
rehabilitation may be expected for the least coat; the extent to 
which displacement is minimized; the extent to which overrowding 
is reduced, the extent to which the least amount of administrative 
funds are required; the extent to which the owner agrees to mtike 
the units in a building receiving this assistance for more than 5 
years; and the capacity of the grantee to carry out the program 
and the financial feasibility of the proposed program. Assistance 
under the pn^am is limited to the leat amount necessary to carry 
out the progTEim. Owners of rental or cooperative housing must 
enter into agreements with the Secretary with respect to the Secre- 
tary's requirements and the financial feasibility of the program 
and must agree to pass to tenants any reductions in debt service 
savings; not to convert the project to a condominium, not to refuse 
to rent to persons or families because they require federal, State or 
local housing assistance; and, that the units repaired or rehabilitat- 
ed will be occupied or available to be occupied by low income per- 
sons or families for a least 5 years. In addition, owners must Eigree 
to provide wirtten annual leases that prohibit eviction of tenants 
without good cause and local governments and nonprofit organiza- 
tions must certify to meet fair housing laws, supervise repairs and 
rehabilitation, and have an impartial party inspect the repairs and 
rehabilitation. Other provisions regfirding annufil audits and re- 
views, nonconformance and historic preservation elements are in- 
cluded, as well as the requirement of a report to Congress 180 days 
after the close of each fiscal year containing a description of the 
progress made by the grantee in accomplishmg the program's ob- 
jectives and a summary of the use of funds, m establishing this 
program. Congress recc^nizes the limitations of the existing FmHA 
repair and rehabihtation programs. They are not structured nor 
funded Eidequately to meet me housing rehabilitation needs of 



yGoot^le 



337 

nual areas so that the existing rural housing supply might better 
be utilised for the vast, unmet housing needs of the rural poor and 
with the participation of the States and local governments, as well 
at capable nonproHt organizations dedicated to assisting these rual 
fomilies. In this respect, it is the intention of the Congress that all 
eligible applicants be given equal standing by the Secretary and 
that only the specified criteria be used in selecting applications 
from among the several grantees. While this new program encour- 
ages tlie partidpetion of the States, the clear intent of the congress 
m that the Secretary not delegate the authority provided under the 
pTwram to a nonfederal entity. 

The amendmetits established a Congressional review of FmHA 
rules and regulations which provides that no rule or regulation 
may become effective until it has been published in the Federal 
Register and available for public comment at least 60 days prior to 
its eflective date and shall not be published as final for at least 30 
days thereafter. The Secretary is required to provide the appropri- 
ate Committees of the Congress all rules and regulations at least 15 
days before being submitted to the Federal Register for publication. 
Rules or r^ulations the Secretary certifies to the Congress is nec- 
enary for an emergency may be exempt from the requirements of 
the applicable provisions of this amendment. In providing for this 
exemption, the Congress is concerned that it not be used to circum- 
vent the Administrative Procedures Act and expects that these pro- 
visions will be implemented in full conformance with that Act. 



yGoot^le 



yGoot^le 



STATEMENT BY SENATOR GARN 

[Congressional Record— Senate— November 17, 1983] 
Mr. Hatfield. I yield to Senator Gam. 

AMENDMENT NO. 2633 

Mr. Gabn. Mr. President, I move that the Senate concur in the 
House amendment to the amendment of the Senate numbered 11 
with the following amendment which I send to the desk at this 
time. 

The Presiding Officer. The amendment will be stated. 

The l^islative clerk read as follows: 

The Senator from Utah (Mr. Gam) proposes an amendment numbered 2633. 

Mr. Garn. Mr. President, I move that further reading of the 
amendment be dispensed witii. 

BJr, Byrd. Mr. President, reserving the right to object — and I 
could object, which would require the reading of that entire amend- 
ment — may I Eisk the distinguished Senator, still reserving my 
right to object, is this the block of amendments that we have been 
healing about and, if so, what is involved? 

Mr. Garn. I would be happy to answer the distinguished minori- 
ty leader's question. I was going to explain it, but it is appropriate 
to do it at this point. 

This is the amendment that everybody has been talking about, 
and it is a situation where we passed the IMF bill in the Senate 
early this summer and expected to go to conference with the House 
of Representatives before the August recess. They were unwilling 
to appoint conferees on that particular issue, although the Senate 
was ready to proceed, and we were told that unless there was a 
bousing authorization bill to go with the IMF bill, there would be 
00 ^F conference. Therefore, there has been a series of n^otia- 
Uons with the administration, with the distinguished chairman of 
the House Banking Committee, myself, and many others to 
produce a housing authorization bill. 

So the Senate is correct, this is a large and rather unprecedented 
amendment, a method of procedure that I do not like, I do not 
think is appropriate and wished I had not been forced into proceed- 
ing in thjs manner. But at this late date there are important 
iasues. "Hie housing authorization bill is certainly one that is im- 
portant to the country, so it is a large amendment including IMF 
and housing and others that I will explain in more detail. I will not 
take the time now, but to identify it for everyone this is that com- 
bination package that has been talked about. 

Mr. BvRD. Mr. President, I still reserve the right to object, and I 
hope the distinguished Senator will indulge what I am about to 



yGoot^le 



340 

Mr. Garn. I would be happy to. 

Mr. Byrd. The distinguished Senator has indicated that the IMF 
and the housing measures are included in this amendment, and he 
has said "others that he will explain." I would like to know what 
the "others" are. 

Mr. Garn. Without explaining in detail, the Eximbank authori- 
zation will also be in it, as well fis the authorization for the Inter- 
national Development Banks. 

Mr. Byrd. We have four authorizations? 

Mr. Garn. There are three authorizations^for IMF, for Ex-Im, 
for housing — and then we have the appropriation for IMF as well. 

Mr. Byrd. Mr. President, still reserving the right to object, I 
have to say — and this is without any denigration or aspersions with 
respect to the Senator from Utah or any other Senator 

Mr. Garn. May I interrupt the Senator? 

Mr. Byrd. Yes. 

Mr. Garn. There is one other element I neglected to announce. 
We have not been able to come to an agreement with the House on 
the Defense Production Act authorization. Therefore, an additional 
element in this package is a simple extension of the Defense Pro- 
duction Act authorization. I want the distinguished minority leader 
to know eveiything. 

Mr. Byrd. I thank the distinguished Senator. 

My situation is this, Mr. President. I do not want to take long in 
reserving my right to object, but if I do not reserve the right to 
object, I might just have to go ahead and object, which would cause 
the amendment to be read and that would take a good bit of time 
of the Senate, because that is quite a lengthy amendment. I do not 
intend to object. 

I have the floor, do I not, Mr. President? 

The Presiding Officer. The Senator from Utah lost the floor 
when he sent the amendment to the desk. Until the amendment 
has been read, or its reading called off, no Senator has the right to 
the floor. 

Mr. Byrd. Mr. President, I do not want to object. I want to save 
the Senate's time, so I ask unanimous consent that I be permitted 
to speak for a brief time. 

The Presiding Officer. Is there objection to the request of the 
minority leader? The Chair hears none, and it is so ordered. 

The minority leader is recognized. 

Mr. Byrd. Mr. President, this is a bad way to legislate. Again, I 
am not complaining about the Senator. He too has said it is a bad 
way, but he is a victim of circumstances. 

There is one part of this package I strongly favor, and that is the 
housing part. As to IMF and most other items he has mentioned, I 
feel varying degrees of hostility or support, whichever word best 
applies. 

This is a reprehensible way to legislate. At leeist five mcgor bills 
have been offered as an amendment en bloc to an amendment in 
disagreement. 

Is this a motion to strike and insert? 

The Presiding Officer. It is a motion to strike and insert. 

Mr. Byrd. So there could be no request for a division on the 
amendment. Am I correct? 



yGoot^le 



S41 

The PsBaniNG Officer. The Senator is correct. 

Mr. Btrd. However, any Senator could move to strike any one or 
more of these various items and thus get a separate vote in that 
way. Am I correct? 

The Presiding Officer. The Senator is correct. 

Mr. Bybd. I thank the Chair. 

The Senate has already passed several of these measures, I be- 
lieve — IMF and what others? 

Mr. Garn. It has passed them, except housing and defense pro- 
duction. The others have been peissed by the Senate, including the 
appropriation for IMF. 

Mr. Byrd. I just want to say for the record that I hate to swallow 
this kind of pill. I am going over in my mind as to whether I will 
offer an amendment to strike one of these measures, such as the 
IMF, for which I voted when it passed the Senate — but to strike it 
out, in protest of this procedure. 

For the moment, I suf^est the absence of a quorum. 

Quorum Call 

The Presiding Officer. The clerk will call the roll. 
The l^islative clerk called the roll, and the following Senators 
entered the Chamber and answered to their names: 



Bjrrd 


Hawkins 


Levin 


DcConcini 


Heinz 


Mathiaa 


Denton 


Inouye 


Proxmire 


Itodd 




Riegle 


Gua 


Lautenberg 


Stennis 


Hatfield 


Uahy 


Wilaon 



The Presiding Officer. A quorum is not present. 

Mr. Baker. Mr. President, I move that the Sergeant at Arms be 
instructed to require the attendance of absent Senators, and I ask 
for the yeas and nays. 

The Presiding Officsr. Is there a suf^cient second? There is a 
sufficient second. 

The yeas and nays were ordered. 

The Presiding Officer. The question is on E^eeing to the 
motion of the Senator from Tennessee to instruct the Sergeant at 
Arms to require the attendance of absent Senators. On this ques- 
tion the yeas and nays have been ordered, and the clerk will call 
the roll. 

The eissistant legislative clerk called the roll. 

Mr. Stevens. I announce that the Senator from North Carolina 
(Mr. Blast) is necessarily absent. 

Mr. Byrd. I announce that the Senator from California (Mr. 
Cranston), the Senator from Ohio (Mr. Glenn), and the Senator 
from SouUi Carolina (Mr. Hollings) are necessarily absent. 

The PtasiDiNG Officer. (Mr. Gorton). Are there any other Sena- 
tors in the Chamber who desire to vote? 

The result was announced— yeas 92, nays 4, aa follows: 



yGoot^le 



[Rollcall Vote No. 371 Leg.] 



Mitchell 
Moynihan 
Murkowski 
NicklcB 

Packwood 

Pell 

Percy 

Ruidolph 

Riesle 

Roth 

Rudinan 

Sarbanee 

Sasser 

Simpson 

Specter 

Stafford 

Stennis 

Stevens 

gvmmB 

lliumiand 

Tower 

Trible 

Tsongas 

WaUop 

Wilson 
Zorinsky 



So the motion was eigreed to. 

The Presiding Officer. With the addition of Senators voting 
who did not answer the quorum call, a quorum is now present. 

Supplemental Appropriations, 1984 — Conference Report 
amendment no. 2633 

Mr. Byrd addressed the Chair. 

The Presiding Officer. Is there objection to the request of the 
Senator from Utah? 

Mr. Byrd. Reserving the right to object, Mr. President, I do not 
intend to object to the request of the Senator from Utah to dis- 
pense with the reading of the amendment. That funendment would 
require 6 hours of reading. It was not my purpose in the b^inning 
to object to the reading of the amendment. So I do not object to his 
request. 

Mr. Bakeb. Mr. President, is the request still pending? 



Abdnor 


Gam 


Andrews 


Gorton 


Armstrong 


Grassley 


Baker 


Hart 


Baucus 


Hatch 


Bentsen 


Hatfield 


Biden 


Hawkins 


Bingnman 


Hecht 


Boren 


leflin 


BOBChwitz 


leinz 


Bradley 


Helms 


las- 


luddlestan 
lumphrey 


a. 


nouye 
!ohwton 




Kassebaum 


Cohen 


Kasten 


D'Amato 




Danforth 


Lautenbfrg 


DeConcini 


Laxalt 


Denlmi 


*ahy 


Dixon 


*vin 


Dodd 


x)ng 


Dole 


Lugar 


Demenid 


Mathias 


Durenberger 


Matsunaga 


Eagleton 


Mattingly 


Evans 


McClure 


Exon 


Melcher 


Ford 


Metzenbaum 




NAyS-4 




W& 


Pnnmira 




NOT VOTING- 


Cranston 


Glenn 


Bast 


HollingB 



yGoot^le 



343 

The Pbbsiihng Officer. The request is still pending. 

Several Senators addressed the Chair. 

Mr. Arbsttbong. Mr. President, reserving the right to object, it is 
not my intention to object but I would like to say a word about the 
parliainentary situation we find ourselves in. 

Mr. Byrd. Will the Senator yield to me? 

Mr. ASHSTRONG. Yes. 

Mr. BvRn. Neither one of us has the right to debate this just 
DOW. We either object or do not object. I hope the Senator will not 
object. We will have an opportunity, once the request of the Sena- 
tor from Utah is acceded to, to speak. Inasmuch as it was I who 
called for the live quorum, I would like to say something about the 
parliamentary situation. 

Mr. AsMffTRONG. Since there are a number of Senators on the 
floor, I wonder if the Senator from Utah can withhold his request 
for a moment so that the minority leader might speak on the sub- 
ject and I might speak on the subject. 

Mr. Gabn. If the minority leader will yield, since I put in the re- 
quest, certainly I would expect the minority leader to be recognized 
first for his statement, and then I would hope I would be allowed, 
as manager ot the bill, to make my opening statement. Then I 
would be happy for anyone to seek the floor. I think the minority 
leader deserves to be recognized first, however. I think we should 
let the request go through and then the minority leader would 
have the floor. 

The Pbesiding Officer. Is there objection to the unanimous-con- 
sent request of the Senator from Utah? Hearing none, it is so or- 
dered. 

(The text of amendment No. 2633 is printed later in today's 
Record under Amendments Submitted in Routine Morning Busi- 
ness.) 

The Presiding Officer, The minority leader is recc^nized. 

Mr. BvRO. Mr. President, I felt I would be neglectful in my duties 
to my colleagues if I did not alert them to what we were doing 
here. It is nothing new for the Senate to adopt an amendment to 
an amendment in disagreement. That heis been done many times 
here. 

In this instance, however, the amendment contains, I believe, 
five meyor bills. I suppose there are two saving graces here — at 
least two saving graces. Those saving graces are: First, the housing 
bill, which is in here, and which the administration has opposed — 
BO Uiat is one thing. 

Second, the Senate has already acted at one time or another, I 
believe, the other four items. Am 1 correct — without losing my 
right to the floor? 

Mr, Gabn. Three out of the four have been passed by the Senate 
previously. 

Mr. Bybd. Which item has not previously been passed by the 
Senate? 

Mr. Gabn. The International Development Bank. 

Mr. Byrd. I thank the Senator. 

Here is where we are, Mr. President. Because there is a sweeten- 
er in the package — namely, the housing bill — we are being asked, 
at the last minute, figuratively speaking, to adopt a package of five 



yGoot^le 



344 

bills, three of which the Senate has already acted on, euid two of 
which the Senate has not acted upon. 

Mr. Garn. That is correct. 

Mr. Byrd. One of which two I am especially supportive of, 
namely the housing bill. 

Mr. President, 1 do not think this is a good way to I^islate. I say 
again that it is perfectly proper to amend amendments in disagree- 
ment. I urge my colleagues and I apologize to them for forcing a 
live quorum here, but I thought I had the duty to do it so all Sena- 
tors can see what we are doing. 

I do not have any criticism of the Senator from Utah. I think he 
is a victim of circumstances here. I have no criticism of the m^ori- 
ty manager or the ranking manager, because 1 think they are 
caught in the same situation. I doubt that they like this procedure 
any better than I do. 

I say for the third time, it is perfectly proper to do this. The 
Senate from time to time will add an amendment to an amend- 
ment in disfigreement. But I want my colleagues to know that we 
are adding a package here en bloc — five bills. It is an amendment 
to strike out and insert, so a Senator cannot ask for a division. A 
division cannot be had. The only way to get a separate vote on any 
one of these five bills would be to move to strike that particular 
measure from the amendment and the Senate could then get a sep- 
arate vote on that, 

I shall not do that. I have not played the part of an obstruction- 
ist in the Senate for the last 19 years out of my 26 years here. The 
chairman of the committee and the ranking member have worked 
hard and the Senator from Utah has worked hard on this. 

Mr. President, I also call attention to the fact that any Senator 
who wished to add an amendment to this package — if we are going 
to go this way, I thought I should alert my colleagues to the fact 
that they have a right fdso to ofTer to amend this package — any 
Senator who wants to offer an amendment can of!er it. It is a per- 
fectly legitimate way to get a vote on your amendment. I just hope 
that we will not be forced on many future occasions to vote on a 
package of five bills in order to be supportive of one we like. 

I do not like the procedure of having to vote for four measures 
that Senators might not like in order to get one they strongly sup- 
port. 

I say again to any Senator who wishes to participate in this kind 
of approach that he has the right to do so. 

Mr. Baker. Mr. President, will the Senator yield to me? 

Mr. Byrd. Yes, Mr. President. 

Mr. Baker. Mr. President, I cannot think of a single word ut- 
tered by the minority leader that I disagree with. It is an awkward 
and cumbersome way to legislate, but it is also right and proper. I 
can assure the Senator for my part that it is not going to become a 
practice as far as the leadership on this side is concerned. I ac- 
knowledged to the distinguished chairman of the committee and 
the distinguished Senator from Utah that I do not think there is 
any other practical way. I feel the Senator from Utah was perhaps 
reluctant to proceed this way but there is no other practical way. I 
agree with the minority leader that it is not good, but perhaps best 



yGoot^le 



345 

to go along with it. I assure my coUee^es on both sides of the aisle 
that this ia not going to be habit forming. 

Mr. Byrd. I tnank the majority leader. I am going to give up the 
floor in a moment, but I want to extend my congratulations to the 
diainnan of the committee, Mr. Hatfield, who is an outstfuiding 
chairman, always fair and considerate, and all Members are grate- 
ful to him. And kudos also to the ranking member and an apology 
to the chairman of the subcommittee. 

I have not yet given up the floor, but I do not intend to hold it 



■"llr. 



[r. Meizenbaum. Will my colleague yield for a question? 

Mr. Btrd. I yield for a question, Mr. President. 

Mr. Meizenbauh. Mr. President, nobody wants to keep matters 
from moving forwfird, but it occurs to me that this package pro- 
vides literally millions of dollars with respect to foreign expendi- 
tures — International Monetary Fund, IDA, I forget the third one — 
Eximbank, which really has to do with overseas matters. There is a 
little bit in there as far as housing is concerned. 

I know I have heard the Senator from Michigan address himself 
on a number of occasions to the need to have an opportunity to in- 
clude health insurance for the unemployed in some way — I think 
the junior Senator was speaking of disability insurance and the 
senior Senator was speaking of health insurance for the unem- 
ployed. I wonder whether there would not be more equity if this 
pacKage had a little greater concern for people living in this coun- 
try, even though I am concerned for people living throughout the 
world. I wonder if when the package is put together, it should not 
indude either or both of the measures that the two Michigan Sena- 
tors, with my support, have been advocating. 

Mr. Byrd. Mr. President, I shall respond to the Senator, then I 
shall sit down. Certainly, any Senator has the right, the Senator 
&om Michigan or any other Senator, to call up an amendment to 
the package and he can get a vote on it. That is my response. 

Mr. Gasn. Mr. President, I would like to respond to the distin- 
guished minority leader and say that I, too, agree with everything 
he said about the procedures. As a matter of fact, during the 
quorum call and vote, I told him there was nothing he could possi- 
bly say negative or nasty about the procedure that I would not 
agree with. It is a terrible way to legislate and I think the minority 
leader knows that since I have been chairman of the Banking and 
HUD independent agencies, my bills have been out first, 3 years in 
a row. Dee Huddleston and I have worked together and we have 
produced the first appropriations bill that has been signed. We 
Kissed the housing authorization bill out of the Senate Banking 
Committee a long time ago. We passed Eximbank authorization. 
WeoaBsedlMF. 

The major portions of this bill either came out of the Senate 
Riinying Comniittee last June and July or passed the Senate emd 
the House and went to the President for signature in some cases. 
So this is not my idea of being the proper way to legislate. It is 
wiODg and we should not be doing it. I point out to my colleagues 
that it was not the choice of either Senator Proxmire and I from 
the Bwpfci"g Committee or Senator Huddleston and 1 from the Ap- 
propriations Subcommittee to do it this way. We were ready to go 



yGoot^le 



346 

to conference on IMF in July. We were ready to go to conference 
on a number of these issues and the House of Representatives 
simply told us no, that they wanted a housing package attached to 
this. We started negotiating more than 6 weeks ago, negotiations 
that have been detailed and comprehensive and have been done at 
the principal level between the distinguifihed chairman of the 
House Banking Committee, Secretary Regan, myself, David Stock- 
man, and others who were brought in on various parte of the nego- 
tiations. At no time have I liked the procedure. I made the com- 
ment it was like mating a turkey and a camel and hoping it would 
lly. So I cannot tell my colleagues enough that this is Uie wrong 
way to do it. But it was not the choice of this Senator or my Demo- 
cratic colleagues on my committees to do it this way. It was forced 
on us by the House of Representatives. That is the reality of the 
situation. I wish it were otherwise. If I could possibly have avoided 
this procedure, I would have done so. 

But having said that, we do have what I think is a very good 
package. Those negotiations resulted in some good, reasonable com- 
promises between the House and Senate versions. I believe those 
who have had the opportunity to study it will find that this is a 
good housing package. It tracks very closely with the appropria- 
tions bill that was passed, as I said, in June, the first »)propria- 
tions bill to do so. I think the compromises between the House and 
the Senate are reasonable. But it is important — the minority leader 
is correct — anyone has a right to amend my amendment, and I do 
expect several amendments to be offered. Some of them I may 
agree with and some of them I may not. But having described tlm 
tortuous 3-, 4-, 5-hour per day negotiations for weeks and now 
having agreement that the House of Representatives will accept it, 
that the President will sign the whole package because his people 
have been involved in the negotiation, housing, the whole works, 
without any thought of change or of veto, it is important for Sena- 
tor Proxmire and I now to try to maintain this package intact. 
Once eigain, do not misunderstand me. That is not locking out any- 
body who wishes to offer an amendment but to say that we feel 
constrained to try and defeat those amendments even if they are 
good ones, because if we send this back to the House in disagree- 
ment again and they modify it, it comes back to us, we could lose 
everything. We could lose the housing package and, believe me, if 
it is separated, the minority leader is also correct that someone can 
make a motion to separate out one of these titles. But after 6 
weeks of carefully constructing this mess we simply, if we separate 
it, defeat all the parts. 

I do not want that to happen. I want a housing bill, too. And this 
is a good one. So I would hope my colleagues understand the proce- 
dure and that there is no disagreement whatsoever with the distin- 
guished minority leader, the fine parliamentarian that he is. This 
is not the way to conduct the Senate's business. If I can avoid it in 
the future, as long as I am here, it will never be initiated by me. I 
will guarantee that. This procedure will never be initiated on the 
Senate side. 

Mr. Proxmire. Mr. President, will the Senator yield? 

Mr. Garn. I would be happy to yield to the Senator from \ 



yGoot^le 



347 

BAr. Pkoxmikb. Mr. President, as ranking member of the Banking 
Committee, I strong^ support my cheiirmeui. I think he is at^olute- 
ly right about this. I rise in support of this amendment because it 
is an amendment that certainly is unusual — not unprecedented, as 
the minority leader has pointed out, but unusual. We do not like to 
legislate this way. Normally it is not the way we do it. However, 
this is legislation which simply takes three bills that have passed 
the Senate emd two measures which have the support of the appro- 
priate committee, the jurisdictional committee, and put them in a 
package which is the only way we can get them through. The 
House has been adamant on it. There is no way they will take and 
implement this bill unless there is housing attached to it. lliat is a 
iact of liJFe, I feel veiy strongly, as did the majority of the Senate 
who voted for the IMF bill, that we ought to pass it. This is the 
only way we could do it. So I hope that the Senate recc^nizes that 
this is a combination of measures that has passed the Senate 
before or has the approval of the authorizing committee and those 
that have not passed the Senate, it seems to me are not really in 
much dispute in this body. 

So I again strongly support my chairman. I think he is right on 
this. I think he has done a fine job of working out a compromise 
with the House, and this is the only way we can get this l^slation 
enacted. I think the minority leader was absolutely 100 percent 
correct in calling our attention to this unusual kind of action, and I 
hope we do not have to repeat it. 

Mr. President, I urge my colleagues to support this amendment 
which will, among other things: 

First, authorize the United States to increase its quota to the 
International Monetary Fund (IMF); 

Second, renew and strengthen the mandate of the Export-Import 
Bank; and 

Third, extend and amend congressional authorization for housing 
and community development programs. 

Portions of the bill dealing with the IMF will authorize an in- 
crease in the U.S. quota to the IMF of $5.8 billion, and also author- 
ize appropriations of $2.7 billion in order to increase the amount of 
fiinds which the United States may lend to the IMF under the gen- 
eral agreement to borrow. 

I support the IMF legislation because I am convinced it is vital to 
insure America's continued prosperity and jobs for our workers. In 
a recent speech. President Reagan warned that if Congress failed to 
pass the IMF legislation we could face, in his words, "a major dis- 
ruption of the entire world trading and financial system — an eco- 
nomic nightmare that could plague generations to come." I agree 
with the President — this legislation is needed now if we are to pull 
the world's economy back from the abyss of fmancial collapse. 

I also wish to emphasize that the United States is not acting 
alone in this rescue effort. For every dollar we are making avail- 
able to the IMF, other countries together are making available a 
little more than $4. So we are getting lots of help from other coun- 
tries in this truly cooperative enort to avert financial disaster. 

There are some who will charge this bill is nothing more than a 
bailout for the big banks who are in trouble because of their own 
miqudgments and lack of prudence. 1 do not agree. There is a spe- 



yGoot^le 



348 

ciflc provision in this bill that requires the United States to oppose 
and vote against any funding by the IMF where the principal pur- 
pose is to allow countries to pay back imprudent loans meide by the 
banks. The fact of the matter is that we are bailing in the big 
banks, not bailing them out. For every dollar the IMF lends to the 
debtor nations to help them through this difficult period, the inter- 
national bankers are going to lend $3 or $4. Combining this with 
the money from other countries means the American taxpayer is 
going to get about 10 times as much for his money as he does on 
most foreign aid programs. To say then that the bfmkers are just 
being repaid by IMF for their past imprudent loems to developing 
countries is false. 

Some argue that if these developing countries cannot repay their 
debt, we should let them go bankrupt. Those who advocate such a 
course fail to recognize that 45 percent of our exports of manufac- 
tured goods and 39 percent of our total exports are to developing 
countries. If they went bankrupt the effect on our country would 
be devastating. Hundreds of thousands of Americans would lose 
their jobs as our export sales dwindled. Perhaps even more impor- 
tant, those bankrupt developing countries would become ripe for 
social revolution and the influx of communism. Many of these 
debtor countries, such as Mexico, Brsizil, and Argentina, are in 
Latin America. Bankruptcy for them could mean economic and po- 
litical chaos. We certainly do not need any more Castro-style re- 
gimes in that part of the world. 

The IMF, as you know, does not loan money to countries with 
balance-of-payments problems without requiring them to take 
measures to insure the loans can be repaid. These conditions are 
designed to make sure that the borrowing nation puts its economic 
house in order. To guarantee that the IMF does not fund practices 
that contribute to the breakdown of our international financisU sind 
trading system we have put provisions in this legislation that will 
require our representative to the Fund, to seek to have practices 
such as export subsidies discontinued by a country before it can 
qualify for IMF funding. 

The IMF bill eilso contains four provisions to reform the U.S. 
bank regulatory system in order to prevent our banks from making 
imprudent foreign loans. 

In recent years many of our large banks had a capital ratio with 
respect to their assets of less than 4 percent. This legislation re- 
quires the bank regulating agencies to establish uniform systems 
for requiring hanks to maintain adequate levels of capital. It does 
not, itself, establish a uniform level of capital adequacy but leaves 
that to the regulators. The Banking Committee will keep a close 
watch on how the regulators carry out this requirement. 

Second, the bill provides that each regulatory agency shall re- 
quire its banks to establish and maintain a special reserve against 
foreign loans that have not been repaid over a protracted period. 
These reserves would be maintained off the books of the bank and 
could not be counted as capital for supervisory, regulatory, or dis- 
closure purposes at the bank r^ulatory agencies and at the Securi- 
ties and Exchange Commission. Mfiintenance of such a special re- 
serve by a bank would be tantamount to writing off such loans. 



yGoot^le 



349 

lUid, the bill provides that each appropriate banking agency 
Bhall establish rules for accounting fees charged by banks in con- 
ntetioD with their international loans. Under such rules any por- 
tioD [^ a lo£Ln fee that is deemed interest income would be amor- 
tiKd over the effective life of the loan. Some banks have taken re- 
scbedulit^ fees as earnings in the quarter they are received. Thus 
these banks have actually shown an increase in their recorded 
pn£ts after rescheduling their foreign debts, even though the qual- 
ityoftheloan portfolio heis deteriorated. 

Finally, the bill authorizes the regulatory agencies to require 
more frequent and complete reports from banking institutions with 
reaped to foreign country exposure. This legislation would require 
Buch reports to be filed no fewer than four times a year, rather 
than semiannually as now. 

tliese refozins will go a long way toward correcting abuses that 
have crept into our beuiking system over the last several years. 

To Bum up 1 urge your support for the legislation to increase 

our IMF con^tribution because it is a bargain basement means of 
helping to safeguard U.S. economic and political interests while at 
the 8ame tinne achieving reforms that will help prevent a reoccur- 
rence of the zio^ threatening debt crisis. Our economy will benefit 
1^ maintaining a viable International Monetery Fund. 

Another section of this bill renews and amends the mandate of 
the Eiport-Import Bank — Eximbank. 

The private sector traditionally has provided most of the financ- 
ing needed by our exporters. There are occasions, however, when 
private sector credit is not available or is unsuitable because of 
cratract terms, political risks, or interest rate constraints. In many 
instances the Exim fills a void for our exporters. It can also play a 
vital supplementary role by providing guarantees or insurance that 
serve to stimulate private credit financing of our exports. 

To make sure the Bank considers the needs of all of our export- 
ers, this bill amends the Exim charter to make it clear that service 
exports are to receive the same and equal treatment as the Bank 
pves the export of goods. I think this particular amendment is 
most welcome because services represent the fastest growing sector 
of American exports and the Bank has been somewhat in doubt 
siout its authority to provide support for service exports. 

During the consideration of this bill, I heard complaints that the 
Bank was not always responsive to the needs of small businesses. 
Therefore, we have added a provision, which requires the Bank's 
chairman to designate one member of the five-person board to 
insure that the Bank's resources are appropriately used to the 
maximum extent for small businesses. This provision states that it 
is U.S. policy to encourage the participation of small business in 
international commerce and directs the Bank to develop a program 
to make loans and provide guarantees for the export of goods and 
services by such businesses. 

To assure that the Bank takes seriously our concerns about small 
business, we are requiring it to set aside 6 percent of its 1984 ag- 
gr^ate loan, guarantee and insuranc>. authority, to finance exports 
^ small business concerns. The set-aside program will increase 1 
percent a year until it reaches 10 percent in fiscal year 1988. 



yGoot^le 



350 

This bill marks our resolve to stabilize the free trading system to 
which the members of the GATT and OECD have committed them- 
selves. The bill will allow parties, that may be iryured by foreign 
government subsidized imports to our country, to have access to a 
streamlined process under which duties can be impeded on the 
import that will eliminate the effect of the foreign subsidy. 

It is our intention that if the Secretary of the Treasury deter- 
mines that there has been a derogation of an international under- 
taking on official export credits, pursuant to section 650 of this bill, 
the liquidation process on the entry of any such goods shall not be 
finalized pending a final determination on the matter by the ad- 
ministering authority. 

We intend that the Secretary exercise his discretion and impose 
a cash deposit on the offending merchandise because this is the 
most effective method to deter use of these illegal export subsidies. 

Petitions filed under this provision constitute a special class of 
petitions filed with the Commerce Department. Congress intends to 
single these petitions out for special consideration because of their 
public importance. They are to be considered and investigated im- 
mediately and their handling should be expedited in every way so 
they can be brought to an accelerated conclusion. 

1 believe the Export-Import Bank provisions will benefit our 
economy and enable all segments of our export community to com- 
pete internationally, particularly small business. The export sector 
of our economy is vitel to our prosperity in terms of jobs it provides 
our workers and the profit it provides our companies. This Ex-Im 
legislation supports our efforts to maintain a strong export sector 
to our economy. The provision to deter use of illegal subsidies by 
other countries will also help protect our domestic industry from 
predatory practices by other nations. 

Several Senators addressed the Chair. 

The Presiding Officer. The Senator from UUih has the floor. 

OVERVIEW OF HOUSING AND COMMUNITY DEVELOPMENT PROVISIONS 

Mr. Garn. I thank the distinguished Senator from Wisconsin. 

Mr. President, the housing authorization langu^e contained in 
the IMF-Housing amendment is a hybrid product of extensive nego- 
tiations between the Senate and House Banking Committees and 
the administration. This product provides a 2-year authorization 
for most housing programs including housing assistance and the 
PHA insurance programs. Exceptions to this rule include a tradi- 
tional 3-year authorization for the community development block 
grant and urban development action grant programs, and a 1-year 
authorization for the section 312 rehabilitation loan program and 
the Federal crime insurance program operated by Federal Emer- 
gency Management Agency. 

Funding authorization for fiscal year 1984 in this housing pack- 
age adhere to the same levels set in the fiscal 1984 HUD appropria- 
tions law enacted Ifist June. Senators will recall that the appropria- 
tions bill set aside $1.5 billion of appropriations for new programs 
if such programs were authorized. The housing authorization lan- 
guage creates two new programs: a rental rehabilitation and devel- 
opment grant program funded at $615 million f^r 2 years and a 



yGoot^le 



housing voucher demonstration program funded at approximately 
$242 miUioD. The balance of the $1.5 billion would be used to fund 
the current program of section 8 for existing housing certificates. 

COlfMUNiry AND NEIGHBORHOOD DEVELOPMENT AND CONSERVATION 

Community development block grants will be reauthorized for 3 
years at $3,468 billion per year. Of this total, $68.2 million will be 
used for the Secretary's discretionary fund for each of the 3 years. 

TTie objective of the CDBG program, to principeilly benefit low- 
and moderate-income feimilies, is strengthened by requiring that 
during a period of up to 3 years, not less than 51 percent of the 
funds expended must be used by a grantee to benefit low- and mod- 
erate-income persons. 

Cities or urban counties losing their entitlement status because 
of updated census information are grandfathered for 2 fiscal years. 
In the instance that a newly designated entitlement city wishes to 
retain its status as part of an urban county program, it may do so 
for a period of up to 3 fiscal years. A county may qualify as an 
urban county between decennial census if it meets the criteria 
roecified by the act and has verified that it has a combined popula- 
tion of not less than 200.000. 

Urban development action grants are reauthorized for 3 fiscal 
years at a level of $440 million each year. 

HUD is required to use unemployment data in determining 
UDAG eligibility for small cities. Currently eligible small cities will 
retain their eligibility until the criteria are revised to include un- 
emplojonent statistics. 

The section 312 rehabilitation loan program is extended for 1 
year. New loans are permitted from repayments to the revolving 
fund. 

Urban homest«ading is reauthorized at $12 million for fiscal year 
1984, and at such amounts as are appropriated for 1985. 

An equitable procedure for selecting the recipients of the proper- 
ties is established. 

Several demonstration programs, including one using multifam- 
ily rental properties, are adopted. 

HOUSING ASSISTANCE PROGRAMS 

Budget authority is provided for housing assistance programs to- 
taling $9.9 billion for fiscal year 1984, and such sums as may be 
apm^priated for flsceil year 1985. 

The section 8 new construction and substantial rehabilitation 
programs have been repealed, except in conjunction with the sec- 
tion 202 elderly housing program. 

Tenants of public housing and housing assisted under section 8 
would continue to pay 30 percent of their adjusted income for rent 
iy 1986. Deductions from family income will be; $480 for each 
child, $400 for any elderly family, the amount of medical expenses 
in excess of 3 percent of annual income of an elderly family, and a 
deduction for child care. 

A voucher demonstration program is authorized in connection 
with the rental rehabilitation and development program to assist 
families below 50 percent of median income. Public housing au- 



yGoot^le 



352 

thorities wil] receive 5-year contracts from HUD to make assist- 
ance payments primarily for families residing in units fissisted 
under the rental rehabilitation and development pri^ram. The 
monthly assistance payment for any family represents the amount 
that the payment standard for the area exceeds 30 percent of the 
family's monthly income. The monthly payment cannot exceed the 
amount that the rent exceeds 10 percent of the family's income. 

The section 202 elderly housing program is authorized at a level 
of $666 million for fiscal year 1984. An annual interest rate of 9.25 
percent on 202 loans has been statutorily set for 1 year. Prepay- 
ment or transfer of a 202 mortgage will only be allowed if the 
project is operated under the original contract until the maturity 
date. 

Competitive bidding would be allowed on 202 project construction 
only if the rents required to operate the unit exceed 110 percent of 
the fair market rent applicable to such projects, if the project ex- 
ceeds $2 million or if the project is not sponsored by a labor organi- 
zation. 

Lease and grievance procedures are established to implement an 
administrative procedure to advise tenants of the specific grounds 
of any action taken against them by a public housing agency, pro- 
vide an opportunity for a hearing, emd require a written decision 
on the proposed action. 

An emergency shelter prc^am is authorized at $60 million for 
fiscal year 1984 to provide shelter and essential services for individ- 
uals who are subject to life threatening situations because of their 
lack of housing. Grants may be used to rehabilitate existing struc- 
tures, maintain existing structures, pay utilities and furnish the 
shelters and provide health and safety measures. 

A public housing child care demonstration program is estab- 
lished to utilize public housing facilities for the provision of day 
care for lower-income residents. 

RENTAL HOUSING REHABIUTATION AND DEVELOPMENT PROGRAM 

This new prt^am is established as a lower-cost alternative to 
the section 8 programs for rehabilitation and construction of rental 
housing. Total funding for this program may not exceed $615 mil- 
lion for fiscal years 1984 and 1985. Of this amount, $150 million 
will be available for rental rehabilitation in each fiscal year. 
During fiscal year 1984 up to $200 million will be available for de- 
velopment grants. In 1985, $115 million will be provided for devel- 
opment. 

This program provides grants to States and localities to support 
the rehabilitation of privately owned rental properties for lower 
income families, or for new construction or substantial rehabilita- 
tion under very restricted circumstances. 

Assistance for rehabilitation grants can be used only for residen- 
tial rental properties located in moderate income neighborhoods 
where the area income is less than 80 percent of median. Grant as- 
sistance cannot exceed 50 percent of the total cost of rehabilitation, 
except under limited circumstances, and must be used only to 
make essentifU improvements. A maximum of $5,000 grant funds 
may be provided for each unit. 



yGoot^le 



353 

Development ^ants can only be made in areas experiencing a 
severe shortage of decent rental housing, as determined by the Sec- 
retary of HUD. Grant funds can only be used to develop rental 
properties, and assistance can not exceed 50 percent of the develop- 
ment cost, including acquisition. For 20 years following construc- 
tion, 20 percent of t^e units must be available for persons of fami- 
lies with incomes below 80 percent of the median. 

PROGRAM AMENDMENTS AND EXTENSIONS 



FHA insurance programs are reauthorized for iiscal years 1984 
and 1985 at an aggregate commitment level of $50.9 billion per 
year. Losses to the fund are covered by such sums as may be neces- 
sary. 

■Hie requirement that the FHA interest rate be set by the Secre- 
tary of HUD has been eliminated. Interest rate on FHA insured 
loans will be agreed upon by the borrower and the financial insti- 
tution. 

Properties insured under FHA may comply with one of the na- 
tionally recc^nized model building codes or a State or local build- 
ing code based on one of the nationally recognized model building 
codes or their equivalent. Energy performance requirements for 
new construction must be at least as effective as the requirements 
which were in effect on September 30, 1982. 

Loan limits for manufactured homes and lots insured under title 
I have been increased. Manufactured homes which are not insured 
by FHA may be refinanced through FHA if they meet the stand- 
ards established in the National Manufactured Housing Construc- 
tion and Safety Standards Act of 1974. 

Lending for condominium and cooperative housing is facilitated 
by allowing insurtince on cooperative shares where the basic loan 
was not FHA insured. Loan limits for condominium units will be 
consistent with those provided in section 203(bX2). 

Single family mortgage insurance is facilitated on Indian trust 
land, Hawaiian homelands and Pacific Trust Territories where title 
cannot be conveyed. 

The maximum amount a mortgage secured by a one- to four- 
family dwelling can be increased by the amount of the mortgage 
insurance premium paid at the time the mortgage is insured. 

The mfiximum loem to value ratio for homes up to $50,000 has 
been charged to 97 percent of the appraised value. 

A demonstration mortgage reinsurance program has been au- 
thorized to test the feasibility of entering into reinsurance con- 
tracts with private mortgage insurers in order to reduce Govern- 
ment risk and administrative costs and to speed mortgage process- 
ing. 

Demonstration programs for alternative mortgages including 
ARM'S, SAM's, PLAAfs, are authorized. 



yGoot^le 



PART B — FLOOD AND PROPERTY INSURANCE PROGRAMS 

The flood insurance program has been extended for 2 fiscal years 
and mapping studies have been authorized at a level of $49,752,000 
for fiscal year 1984 and such sums as may be necessary for the fol- 
lowing year. 

The Director of FEMA must submit a plan to Congress for bring- 
ing all the communities with flood risk zones in the emergency 
phase of the program into full program status by September 30, 
1987. The study must be prepared by September 30, 1984. 

The premium rates charged for flood insurance cannot be in- 
creased during fiscal year 1984. By June 30, 1984, the Federal In- 
surance Adminstrator must submit a report to Congress on the pre- 
mium rate structure for the program and an explanation of any 
premium increases anticipated before October 1, 1985. 

The riot reinsurance program is repealed. 

The crime insurance program is extended until the close of fiscal 
year 1984. 

PART C — REGULATORY AND OTHER PROGRAMS 

The Real Elstate Settlement Procedures Act has been clarified by 
permitting controlled business arrangements if disclosure is made. 
A strong antitying provision prohibits any requirement that a 
client use a particular settlement service provider. 

The National Institute of Building Sciences is authorized to re- 
ceive no more than $250,000 for flscal year 1984, in addition to the 
amounts already authorized to be appropriated. The amount appro- 
priated must be matched by donations from nongovernmental con- 
tributors to the Institute. 

The solar energy and energy conservation bfUik has been reau- 
thorized at $35 million for flscal year 1984. 

The weatJierization program has been authorized for not less 
than $190 million for flscal year 1984. 

The housing counseling program has been authorized at $3.5 mil- 
lion for fiscal year 1984. 

The research authorization for the Department of HUD is $19 
million for fiscal year 1984; $2 million of this totfU will be used to 
identify current problems of public housing management EUid po- 
tential solutions to the problems. 

Studies emd reports will also be conducted on the following 
topics: 

PROGRAMS 
PART D — SECONDARY MORTGAGE MARKET PROGRAMS 

The Government National Mortgage Association is authorized to 
enter into commitments to issue guarantees under the mortoa^ 
backed securities prc^am for an aggr^ate amount of $68.25 bil- 
lion for flscal years 1984 and 1985, 

RENTAL requirements/agreements STATEMENT 

Mr. President, the title of this legislation which establishes a 
rental rehabilitation and development program provides that 



yGoot^le 



355 

rental requirements or agreements shall not apply to units assisted 
under that title unless such requirements or agreements are en- 
tered into pursuant to a State law or local ordinance of general ap- 
plicability which was enacted and in effect in that jurisdiction 
prior to the enactment of this section and such requirements and 
agreements would apply generally to structures not assisted under 
tUs section. 

For the sake of those cities which are covered by this grandfa- 
ther provision, it is not our intention that the grandfather protec- 
tion lapses if a Stat« or local ordinance temporarily' lapses while 
awaiting reenactment by a legislative body. Not even Congress 
always extends programs before deadlines have temporarily passed. 
This provision also prevents States or cities from applying rent con- 
trols or agreements specifically created just for projects assisted 
under the rental rehabilitation or development program. 

We also want to make clear that the provision exempting 
projects in those certain jurisdictions from the rent control preemp- 
tion under this progrzun does not affect the power of HUD to pre- 
empt rent controls on projects benefiting from FHA mortg^e in- 
surance. HUD's power to preempt rent controls on FHA-insured 
projects, whether or not subsidized under this program, in order to 
protect the fiscal interest of the Federal Government would apply 
to projects in grandfathered jurisdictions in the same manner as to 
those elsewhere. 

With respect to title 6 which deals with the Export-Import Bank, 
Mr. President, what we have worked out closely approximates the 
Senate version of the bill. Senate language w£is agreed to with only 
minor changes in the provisions clarifying the Bank's mandate to 
provide competitive financing and specifying a level of assistance 
for small business — the Boschwitz Eimendment. 

The practice of mixing foreign sad moneys with officially support- 
ed exjKjrt credits is a particularly unfair and pernicious practice. 
Yet, in recent years, our industrialized trading partners have re- 
peatedly engaged in this practice in order to garner export con- 
tracts in less developed country markets. The compromise struck 
with the House creates a new mixed credit, or tied aid, program at 
the Ebcport-Import Bank. This program should act as a deterrent 
against this unfair practice and help our trade negotiators reach 
agreement with our allies to end it. But it would also act, in select- 
ed cases, as a defense for U.S. exporters who are the potential 
losers when this practice is used. The program would be adminis- 
tered by the Eximbank and coordinated by NAC, the National Ad- 
visory Council, an interdepartmental group established to coordi- 
nate international economic policy. Unanimous approval of the 
NAC would be necessary before any mixed credit under this pro- 
gram could be implemented. 

The legislative language makes it clear that the unanimous ap- 
proval of the NAC is only necessary for mixed credit programs car- 
ried out under this particular program. Nothing in this legislation 
precludes the Eximbank from continuing to carry out its own 
mixed credit programs as it has in the past, or from derrogating 
from the arrangement on officially-supported export credits of the 
organization for economic cooperation and development under its 



yGoot^le 



own charter and under the implementation procedures it has used 
heretofore. 

The midyear report requirement in the Senate hill as well as the 
provision effectively making the Bank subject to the rescission 
mechanism are also included in this compromise with a number of 
wording changes that clarify that such reports or requests are to be 
submitted by the Office of Management and Budget on behalf of 
the administration and not by the Bank directly. Further, the new 
language clarifies that even if a proposed rescission were disap- 
proved, the Bank would not be obligated to make available all of 
its funds regardless of the qualifications of the applicants for them. 

One area where the compromise differs from the Senate bill is 
with respect to the question of the independence of the Bank's 
Board of Directors. Although the compromise includes the Senate 
language providing fixed, staggered terms for the Board members, 
it also includes language providing that the Board members will 
continue to serve at the pleasure of the President. This is a weak- 
ening of the Board independence the Senate wanted to create, but 
the fixed staggered terms will nonetheless provide for greater con- 
tinuity of Board policy and closer, more regular oversight of Board 
activities by the Congress. 

Another area where the compromise difiers from the Senate bill 
is its treatment of subsidized export financing offers in the United 
States. Section 1912 of current law creates a mechanism whereby a 
U.S. company competing in the United States against a foreign 
subsidized financing offer can obtain a matehing offer from the Ex- 
imbank. The compromise strengthens that language by requiring 
that the subsidized financing be a significant factor in the sale 
rather than a determining factor, as in present law, and by putting 
a 60-day time limit on the Treasury Department for making that 
judgment. 

In addition to this provision, the compromise also contains a re- 
vised version of the Proxmire amendment, which provides an addi- 
tional recourse for aggrieved American companies. The original 
language would have created a mechanism permitting the Govern- 
ment to exclude goods or services benefiting from subsidized export 
financing from our shores. The revised version amends the counter- 
vailing duty law to provide for an accelerated determination by the 
15th day of whether or not the proposed export financing derogates 
from the international arrangement on export credit financii^ smd 
an evaluation of the amount of that subsidy. 

Subsequent to such a finding, the normal countervailing duty 

firocedures would operate, except that in the event of suspension of 
iquidation, a cash deposit would be required rather than a bond. 
The current law's injury requirement would remain intact, al- 
though we would expect that the International Trade Commission 
would lend special weight to the fact that in these cases the harm 
done is usually irreparable, the sale having been eigreed to, and to 
the fact that sales in the large capitol goods sector are often infre- 
quent. In my judgment, this earlier determination of whether the 
financing has derogated from the arrangement will be a significant 
deterrent to the offering of subsidized export financing by our for- 
eign competitors. 



yGoot^le 



357 

The compromise also expresses congressional authorization for 
the Mexican and Brazilian facilities eBtabliehed by the Bank on 
September 30, with a proviso that such facilities are to be used for 
export purposes and not for balance of payments purposes. Fur- 
ther, the compromise reauthorizes the Bank for 3 years, instead of 
2 years as proposed by the House and 6 years as proposed by the 
Senate. 

A number of other minor provisions from both the House and 
Senate bill are also included in the compromise: The House provi- 
sion on medium term credits, with a minor change in language, the 
House provision on the export of services, the Senate provisions on 
export trading companies, the House provision providing notifica- 
tion to Congress if the Bank's capital falls below 50 percent of the 
value of its capital at the end of fiscal 1983, the Senate provision 
on FCIA insurance for small exporters, the House provision recon- 
stituting the Bank's advisory committee, without the Senate re- 
quirement that advisory committee members be permitted to 
attend Bank Board meetings, the House provision on nondiscrim- 
inatory insurance opportunities, the House provision authorizing 
appropriations for an International Trade Commission report on 
the impact of the Bank's activities on industries and employment 
in the United States — this report had been previously authorized 
without funding being provided for it, and a group of technical 
amendments pr^K)sed by the Bank to make references in the act 
gender-neutral. Finally, the Senate's provision raising the report- 
ing threshold for large transactions to $250 million has been 
dropped. 

Mr. President, this is a good compromise between version of the 
legislation that were not that far apart to being with. The Senate's 
determination that the Bank become more competitive, more e^- 
gressive, and more independent is fully reflected in this final prod- 
uct. In view of the fact that the Bank apparently utilized less them 
one-fourth of the direct credit funds available to it in the last fiscal 
year, it is clefu- that the Bank has not yet received the message the 
Congress expects a more aggressive performance. This bill sends 
that message loud and clear. 

Title 8 of the legislation provides authorization for the U.S. share 
of increases in two International Monetary Fund lending facilities. 
One is a 47-percent increase in IMF quotas, of which the U.S. share 
is $5.8 billion. The second is a $19 billion increfise in the "General 
Agreement to Borrow" (GAB), of which the U.S. share is $2.6 bil- 
lion. 

Opponents of the increase in the IMF's resources have charged 
that the new funding will be used to bail out international banks 
that have made imprudent foreign loans. But such criticism is 
based on a misunderstanding of how the IMF operates. Before the 
IMF will loan to a country, the IMF requries the commercial banks 
with outstanding loans to that country to commit to continue their 
lending as well. Far from being a bail out for the banks, the IMF 
prwrams should be viewed as bailing in the banks. 

"Hie big advantage of including the IMF in these lending pro- 
grams is that the IMF can require the borrowing countries to un- 
dertake the fundamental economic policy changes that are re- 
quired to solve their balance-of-payments difficulties. 



yGoot^le 



Title 8 also contains a number of significant amendments to the 
Bretton Woods Agreement Act. The Secretary of the Treasury is di- 
rected to work toward the adoption of policies which promote 
proper exchange rate alignment and stability and preclude the ma- 
nipulation of exchange rates between currencies. He is also direct- 
ed to work for procedures which collect and disseminate timely in- 
formation on extensions of credit to public and private entities 
throughout the world. In addition, the Secretary would be required 
to give Congress 60 days notice before any IMF borrowing takes 
place in the U.S. credit markets. Nor, would any approval to in- 
crease allocations of special drawing rights be authorized unless 
the Congress is consulted 90 days prior to such action. 

Title 8, further, provides a number of instructions to the U.S. Ex- 
ecutive Director to the Fund. Among other things, the USED is in- 
structed to work for the elimination of predatory export subsidies, 
for the reduction of obstacles to world trade, for market rates on 
IMF loans, for greater IMF review and disclosure of international 
lending information, and against any loans which could be consid- 
ered bank bailouts. 

Finally, title 8 contains an omnibus reporting requirement which 
requires the National Advisory Council on international monetary 
Emd financial policies to include in its annual reports to the Con- 
gress a very substantial list of analyses and information based on 
every amendment requiring such analyses offered in the Senate — 
as well as an almost equally comprehensive list from the House. 
For example, analyses will be prepared on questions such as wheth- 
er project assistance from the Bank will establish or enhance the 
capacity of any country to produce a commodity in surplus on the 
world markets; what is the impact on the U.S. steel and copper in- 
dustries of steel and copper subsidies by nations who are borrowers 
from the Fund; and what progress has been made in eliminating 
agricultural subsidies by Fund members. A number of other impor- 
tant studies will be produced by the Secretaries of State, Energy, 
and the Treasury pursuant to the reporting requirements of this 
provision. I think my colleagues will agree that the hill will provide 
a mandate for information which will be of benefit to us ana to our 
constituents for years to come. 

Title 9 of this legislation provides: First, for strengthened super- 
vision and r^ulation of international lending by the Federal bank 
regulatory agencies; second, for more timely and comprehensive 
public information on individual banks' foreign borrowing and 
lending; and third, for accounting procedures that will more accu- 
rately refwrt the true results of international lending. 

As the title 9 provisions are very similar in most respects to the 
provisions in S. 695 as reported by the Bfmking Committee and 
passed by the Senate, the report accompanying that legislation — 
Senate Report No. 98-122 — should be reference for a detailed ex- 
planation of the intent of the provisions in title 9. 

Some proposed measures beyond those in S. 695 relating to reeu- 
lation of international lending — such as requiring a rebate to uie 
Treasury of all interest earned above a certain level — proved to be 
unworkable and/or counterproductive upon closer examination. 

The l^islative proposals which are included in title 9 meet the 
test of being workable. They also meet the test of having a positive 



yGoot^le 



impect on the overall strength of the interaational financial 
Oyvtem and the test of meeting the legitimate needs of the Federal 
bank r^ulatory agencies. 

In light of the transfer risk associated with foreign lending, the 
legislation specifically directs each of the Federal banking agencies 
to incorporate country exposure and transfer risk in its examina- 
tion and supervision procedures as well as in its evaluations of cap- 
ital adequacy, while recognizing that such factors as diversification 
of foreign credits clearly are important in assessing capital adequa- 
cy. 

As recommended by the Federal bank regulatory agencies, title 9 
creates a new category of special reserves which commerciid banks 
would be required to set aside against foreign loans when borrow- 
ers experience a protracted inability to make debt service pay- 
mentB. 

Protracted inability to make payments would be indicated by 
such factors as first, a failure of borrowers to make full interest 
payments on indebtedness for a substantial time period such as 6 
months or more second, the terms of restructured indebtedness 
have not been met for over 1 year third, an IMF or other suitable 
adjustment program has not been complied with and there is no 
immediate prospect for such compliance, or fourth, no definite 
prospects exist for the orderly restoration of debt service in the 
near future. 

These special reserves would not apply, for example, to lending 
to a country where the terms of any restructuring of debt are being 
met, where interest payments are being made regularly, and where 
the borrowing country is complying with the terms of an IMF-ap- 
proved stabilization program. 

As an alternative to establishing special reserves, a bank would 
have the option to write off all or part of the loans that would be 
subject to special reserves and, thereby, reduce the smiount of spe- 
cial provisions tmd reserve balances that otherwise would be re- 
quired. 

Consideration was given to requiring that these special reserves 
be applied to any foreign loan that was renegotiate. After much 
discussion, the decision was made that this would be unwise. 

Domestic loans as well as foreign loans often must be renegotiat- 
ed and, in both cases, the renegotiation frequently improves the 
quality of the loans. To impose special reserves on a loan just be- 
cause it was ren^otiated, thus, would not make sense. 

Moreover, a prime objective of this legislation is to strengthen 
the international financial system, not to weaken it. Special re- 
serves are not included in capital, as are regular loan loss reserves. 
As a result, whenever a bank is required to make an allocation to 
these special reserves, the capital position of that bank is weak- 
ened. This consideration underscores the need to limit application 
of special reserves to only those loans where there is a clear pro- 
tracted inability to make debt service payments. 

Title 9 further recognizes the importance of bank capital by 
granting explicit authority to the Federal banking e^encies to re- 
quire banks to maintain adequate levels of capital. The language in 
title 9 on capital adequacy is more specific than in S. 695 regeu'ding 



yGoot^le 



the enforcement of capital requirements, but the intent of both ver- 
sions of the capital-adequacy language is the same. 

In carrying out these capital adequacy provisions, the banking 
agencies are expected to give banks reasonable time periods to 
meet any requirements for higher capital rations. 

Title 9 provides specific guidelines for banks in their accounting 
treatment of "front-end" fees charged in connection with the re- 
structuring of international loans. If such a fee exceeds the admin- 
istrative cost of the restructuring, the excess must be amortized 
over the effective life of the loan. Of course, the effective life may 
differ from the loan's stated term. 

In order to enhance the bank supervisory agencies' capacity to 
analyze and assess developing trends in international lending and 
to supervise better the banking institutions involved, the bill au- 
thorizes the agencies to require more frequent reports from bank- 
ing institutions with respect to foreign country exposure. Current- 
ly, counti? lending reports are required on a semiannual beisis, 
whereas this legislation would require such reports to be filed no 
fewer than four times a year. 

The bill also directs the bank supervisory agencies to require 
public disclosure of information regarding material country risk ex- 
posure in relation to the assets and capital of the banking institu- 
tion. Such disclosure requirements are separate from those re- 
quired under SEC authority but, of course, similar information 
may be required by the SEX^. Public disclosure will enhance mar- 
ketplace discipline by providing depositors and investors with infor- 
mation upon which to assess the banking institutions' foreign lend- 
ing. Banks will need to be prepared to defend policies leading to 
lat^e and concentrated country exposure. Recognizing the relation- 
ship of disclosure to the financial and competitive condition of the 
bank, however, the bill grants to the three banking agencies the 
authority to determine the form and type of information which 
must be disclosed. 

Section 911 clarifies the current audit authority of the General 
Accounting Office with respect to the activities of the Federal 
banking agencies. Reports prepared by the Comptroller General 
under this section will not disclose to the public policy proposals or 
nonpublic supervisory actions of foreign central banl^ or regulato- 
ry authorities or international organizations provided to Federal 
banking agencies in confidence. It is expected that the GAO's 
access to agency records pursuant to an authorized audit will be in 
such framework as will not impede or jeopardize productive discus- 
sions, negotiations and sound working relations among U.S. bank- 
ing agencies and foreign agencies and institutions. This provision is 
not intended to modify in any way exemptions from audit as con- 
tained in the Federal Banking Agency Audit Act and all the provi- 
sions of title 31, sections 701-779 that apply to GAO audita of these 
agencies will continue to apply. 

Finally, in light of the transfer risk associated with foreign lend- 
ing which has been highlighted by the recent liquidity problems of 
some countries, the legislation specifically directs each of the Fed- 
eral banking agencies to incorporate country exposure and Ixansfer 
risk in its examination of supervision procedures. It is expected 
that an effective system of country exposure warnings will be 



yGoot^le 



adopted as part of the examination process that assures these 
warnings are considered at the pohcymakii^ level. This system of 
country exposure warning should recognize that certain country 
exposure may be subject to greater levels of transfer risk than 
others, depending on domestic economic policies and conditions, as 
well as other factors, in a particular country. The legislation also 
directs the hanking agencies to include considerations of country 
exposure and transfer risk in evaluations of capital adequacy, 
while recognizing that such factors as diversification of foreign 
credits clearly are important in assessing the amount of capital 
needed by an individual bank. 

Mr. Hatfield. Mr. President, this is an unusual procedure. In 
fact, I never would have agreed to it if it had not been for the ur- 
gency of the matter, and I would confirm the thesis as given to us 
today by the minority leader of the Senate. We have several hun- 
dred pages of legislation in the form of an amendment to an 
amendment in disagreement on a minor supplemental appropria- 
tions bill. I remind the Senate that we have had a very extraordi- 
nary record of the appropriations process functioning will for the 
first time in my memory. We have reported all 13 bills to the 
Senate. We have passed 11 of the 13 in the Senate. We have eight 
of them signed into law and two more on the way down to the 
White House to be signed into law. We have passed two continuing 
resolutions. We have had two previous supplementals and now this 
supplemental. 

In this context, it is particularly disconcerting to see another ap- 
propriation bill held up for the consideration of extraneous l^sla- 
tion. Time and time again Senators have complained from the au- 
thorizing committees about legislative provisions in appropriation 
bills, and the intrusion into their jurisdiction. These complaints are 
often well taken. Senator Stennis and I have worked hard together 
to fend off legislative provisions, but we have just as often found as 
we find here that we are asked to carry provisions of legislation on 
appropriations. We are asked, not that we have initiated. I do not 
believe we can have it both ways. The chairmen and the members 
of the authorizing committees do not want legislative provisions in 
appropriation bills, and I hope they will refrain from asking us on 
the Appropriations Committee to carry them and vote with us 
when we attempt to keep them out. But as I say, with the extraor- 
dinary circumstances which we face today, 1 want to commend the 
efforts of Senator Gam and Senator Proxmire and their counter- 
parts on the House side for their diligence in putting this package 
together. I am also happy to support the administration and the 
IMF appropriation, and I am pleased to support the housing provi- 
sion. But I am disheartened to see the appropriations process used 
again as a vehicle for all and sundry legislation, no matter how 
vital it is. But I shall support it in this particular CEise because of 
the exigencies of the time. 

Several Senators addressed the Chetir. 

The Presiding Officer. The Senator from Nebraska. 

Mr. ExoN. Mr. President, what I am about to say is in no way 
critical of the distinguished members of the Banking Committee or 
the Appropriations Committee, but it seems to me that there is an 
overriding issue here, despite the fact that there has been a great 



yGoot^le 



362 

amount of effort, supposedly, and I believe it has been put forth in 
an effort to come up with a compromise. 

Unfortunately, "compromise" is beginning to be the key word in 
passing legislation, both by the House of Representatives and the 
U.S. Senate. Indeed, ™aybe it would be well if every law we passed 
started out by saying, "This was not what we wanted to do, collec- 
tively or individually, but this is a compromise." 

I have listened with amazement to the remarks that have just 
been made in this regard on the Senate floor. I have heard s^te- 
ments such as these: "This is a carefully constructed mess." "We 
don't like to legislate in this way, but we have to." "This is a terri- 
ble way to legislate, which we should not do now, and we should 
never do it in the future." 

However, it seems that the recommendations are that we go 
Eihead and do it. 

Mr. President, I call to the attention of this great body that, sup- 
posedly, we are the most deliberative body in the world. If we study 
the intentions of the Founding Fathers, the U.S. Senate, by its very 
nature and by its procedures and by its staggered terms and by its 
6-year tenure, is supposed to say, "Halt! Halt!" when the U,S. 
House of Representatives goes off on a tangent to which this more 
deliberative body is supposed to say, "No." 

I suspect that many Members of this body sire similarly situated 
to the Senator from Nebraska, and that is that there are some 
parts of this horrendous and horrible compromise that I might be 
able to support, but I am not willing to go ahefid under any circum- 
stances, nor can I vote for this proposal and will continue to oppose 
it if the full funding as recommended by the President, and which 
he is now pushing for, is part of the package. They have evidently 
put in some sweeteners from one place or einother, put together a 
mess, as it has been described by one of the leading Senators in- 
volved in this compromise. 

Mr. Garn. Mr. President, will the Senator yield for a correction? 

I said it is a procedural mess, hut substantively it is a good hous- 
ing bill. I wfmt to be quoted correctly. It is a procedural mess, 
turkey, anything you want to apply to it. 

Mr. ExON. I thank my friend for that clarification. I think it is 
not only everything he says from a procedural standpoint, but also, 
it goes much farther than that, and we might differ. 

I suppose some of the justification advanced for this is that we 
have to get out of here. There is no Member of this body who 
would rather see us adjourn, because I think it would be in the best 
interests of the Senate and the American public. But in our rush to 
get out of here for Thanksgiving and a long recess, I think we are 
doing a disservice to the responsibilities we have as U.S. Senators if 
we vote for this piece of legislation, whatever it is called; if, individ- 
ually and collectively, as a majority, we cannot agree that it is good 
legislation. 

So I simply call upon the Senate, once ^ain, to recognize that, 
as badly as we would like to leave, and as much as I think we 
should, pushing through something that is put tcwether in this 
fashion, whether it is a procedural mess or a legislative mesa, is 
not legislation that should be passed by the U.S. Senate, either in 
its form, in its substance, or in the way it was handled. 



yGoot^le 



Several Senators ad<lre8sed the Chetir. 

The Presiding Opficke. The Senator from Colorado. 

Mr. AauSTRONG. Mr. President, I think the Senator from Nebras- 
ka is absolutely right about the procedure we are following. The 
minority leader is right in criticizing the procedure we are follow- 
ing. The Senator from Utah, the manager of this bill, is completely 
correct in describing this, imd I noted precisely his words, because I 
found them to be profoundly descriptive of our circumstance. 

He said: "A terrible way to legislate." He is right about that. It 
is a horrible way to legislate. It is a travesty on the legislative proc- 
ess. Why are we doing it, then? 

The Senator from Wisconsin (Mr. Proxmire) explained it very 
well. He said it is the only way we could get these bills enacted — 
and I think that is right — which gives us an additional resison, in 
my opinion, to turn down the proposed amendment. 

This legislation is bad in its substance, in my opinion, and I 
expect to point out some shortcomings in this legislation, and I 
expect to propose some amendments which, if adopted, would 
greatly improve it. 

More than that, and as a place to start, we should think serious- 
ly about the consequences of giving into our brothers in the other 
body on a matter such as this. 

This is exactly what happened: The Senate passed an IMF bill. I 
did not vote for that. It was a controversial piece of legislation. But 
the Senate worked its will, expressed its intention to pass an in- 
crease in the IMF authorization. We sent that to the House months 
ago. 

The House would not take it up, would not consider it, would not 
confer with us; just would not perform their part of the legislative 



Instead, in a very public way, in a blatant way, in a flagrant 
way, they said, "Look, we're going to hold this IMF matter hoste^e 
until you get a housing bill out." 

Mr. President, if we start that game on a grand scale — obviously, 
there has been some of that kind of practical procedure common to 
the l^islative process, I guess, forever — but when you start rolling 
together issues of this consequence and then bringing them back as 
an amendment in disagreement, we are going a long way in the di- 
rection the Senator from Nebrfiska suggested, saying we did not 
want to do this, but everything got rolled together. 

We should separate this into its component parts and consider 
each component part on its merits. If we fail to do so, if we just 
give in and vote on this package, whether it is voted up or down, it 
seems to me that we greatly encourage the other body to proceed 
in this way in the future. 

So, Mr. President, I want to talk about the substance of the IMF 
Inll first, and then it is my intention to offer an amendment. 

I win also aak that the matter be divided, so that IMF will be 
considered separately on its merits; and then, having disposed of 
that, I will hope to turn to a detailed consideration of the housing 
bQl, and I have some Eimendments there to offer. 

Before I do so and before I yield to the Senator from Pennsylva- 
nia, who I gather would like to make a statement at this time, let 
me say that while I am extremely critical of the process and while 



37-922 O - 84 - 24 



yGoot^le 



I am really dismayed at the fix we find ourselves in, I nonetheless 
have the greatest sympathy and admiration for the role played by 
the Senator from Utah in all this. 

He and I have been conferring about this on a daily basis for 
weeks, and weeks, and weeks. In fact, he prefaced a conversation a 
day or two ago by saying: "I am not calling you about the housing 
bill or IMF." He has gone the extra mile not only in dealing with 
me but, more important, in dealing with the other body. 

This is not the procedure of his choosing. While he arrived at a 
different conclusion about the propriety of this project and about 
the substance of the legislation, I compliment him for handling this 
with the courtesy, with the steadiness, with the scholarship, and 
with the infinite patience that is in the highest tradition of the 
Senate and of the legislative process, and I publicly express my ap- 
preciation. 

My strong appreciation is more than just a thank you. In consid- 
eration of his patience and courteous efforts, I have forgone the op- 
portunity I would have otherwise exercised to object to the consid- 
eration of this matter, to speak against the motion to proceed on 
the housing bill if it had been brought up as a separate bill, to 
object to the waiving of the reading of this amendment when it was 
presented at the desk, or in some other way to use procedural tac- 
tics to delay the process. 

I have done so for no other reason than his extraordinary pa- 
tience and courtesy and his helpfulness to me on a lot of matters 
we dise^ee about. I am not going to try to delay this bill. I am not 
going to fihbuster it. I believe there is a reasonable chance that on 
its merits it m^ be defeated. I expect to raise those issues as force- 
fully as I can. But after all he has gone through, I do not have the 
heart to engage in some kind of parliamentary high-jinks, delaying 
tactics, or filibustering, to try to avoid voting on the issue. I am 
ready to vote on it after everyone has taken up their amendments. 
I want to acknowledge publicly the role he has played. 

Mr. Garn. I want to thank the Senator for stating his position as 
clearly as he has and to thank him for his generous comments. 

Mr. Armstrong. I am ready to proceed, but I see the Senator 
from Pennsylvania is on the floor and wishes to make an opening 
statement. I will yield the floor so that he can proceed, and then 
pick up with my amendments and my observations about this bill. 

Mr. Heinz. Mr. President, I thank the Senator from Colorado for 
yielding the floor. 

Mr. President, what I want to say about this procedure and 
about the substance involved here are two very different things. I, 
too, have reservations about the procedure, legislatively, emd I 
would be hard put to disagree with most of the statements which 
have been made about it insofar as it poses a precedent. But one 
point I would make to all my colleagues on the procedure is that, 
for all intents and purposes, it does not sacrifice the right of emy 
Senator to modify the legislation. I would remind our coUeagues 
that most of the elements of this amendment have been on the 
floor of the Senate. As the manager of two elements, the Ebcimbank 
authorization and the International Monetary Fund authorization, 
and as a very interested party in the housing authorization, I can 
testify to the fact that each of them has been on this floor not just 



yGoot^le 



for hours but in scnne cases for days. In the case of the Eximbank 
and the IMF, the Senate worked its entire will on both of those. 
We considered many amendments, including those of my friend 
from Colorado, and the Senate had the total opportunity to work 
its will. 

Indeed, it seems to me that anybody who has any reservations 
about the IMF, or the Eximbank or the housing authorization is 
now getting a second bite at the apple. Substantively and procedur- 
ally, therefore, everybody's rights, so far as this Senator can deter- 
mine, are being fully protected. So I would hope that no one having 
heard all the protestations, which I think are well taken, about the 
procedure believes that the procedure is either illegal or sacrifices 
the rights of Senators to deal with these matters. 

(Mr. Boschwitz assumed the chair.) 

Mr. Heinz. I do not like it that the House has put us in this pro- 
cedural bind, and I intend to join Senator Garn, the minority 
leader, the majority leader, Senator Armstrong, and all others in 
resisting tiny further use of this procedure. But I must tell my col- 
leagues that this is not the first time that the House has taken hos- 
tages, nor is the Senate free from having taken hostages or prison- 
ers on other occasions. There were some people who might have 
said that the debt ceiling was a prisoner in this past couple of 
weeks in an effort to get the House to move forward on reconcilia- 
tion or some deficit-reduction measure. In every legislative process, 
Strisoners are Uiken at every opportunity unless they are fleet of 
OOt. There is an army after them at each and every moment. 

So I do not know that I would characterize the political proce- 
dure here as anything out of the ordinary. I think any of us who 
have ever been privileged to chair a committee or a subcommittee 
knows that l^islation ultimately emerges only when you have 
enough votes to get it to the full committee and report it from the 
full committee to the floor. I do not expect, therefore, that this will 
be the last attempt to take prisoners, but it does suggest to me that 
it is certainly well to be on our guard. 

Mr. President, having spoken at length during the consideration 
of the Eximbank bill and the IMF bill when they were on the floor, 
I shall say nothing of them except that I support them again. I 
hope we enact them in this procedure, notwithstanding all our res- 
ervations about it. 

I would only say that the housing authorization that Senator 
Gam h£is worked at so diligently is an excellent compromise. It is 
literally true — I know, because I have tried to contact him on other 
matters on which he has also spent a good deal of time — he has 
spent 3, 4, and 5 hours a day on this compromise, and it has been 
going on for weeks. I do not know of any other Member of this 
body who has such patience and perseverance. I would be remiss if 
I did not compliment him and the ranking minority member. Sena- 
tor Proxmire, as well as Senator Riegle and others who have 
fjayed an indispensable role in getting an agreement on a housing 
authorization that, assuming we pass it and I hope we do, will be 
the first time we have enacted a housing authorization in some 3 
years. 

Mr. President, I want to commend the Banking Committee lead- 
erdiip in both Houses of Congress as well as the administration for 



yGoot^le 



coming to an a^eement on a housing authorization bil} for 1983. 
Those of us who care about the Federal responsibility for insuring 
that all Americans have decent and affordable shelter should be 
pleased that we are on the verge of passing the first housing au- 
thorization bill under the current administration. Those of us who 
serve on the respective housing subcommittees of the House and 
Senate Banking Committees as I do, should feel some measure of 
satisfaction for the contributions made toward the achievement of 
a consensus document. 

S. 1338, the ori^neil Housing and Community Development Act 
of 1983, reported m May by the Senate Banking Committee, was a 
sound and fisc£illy responsible piece of legislation. It contained the 
seeds of the compromises reached between Congress and the ad- 
ministration on many of the major points of disagreement, includ- 
ing the level of rent contributions to be made by tenants in subsi- 
dized housing; a reasonable legislative response to HUD's adminis- 
trative efforts to change the methods of calculating fair market 
rents for section 8 existing housing units; and protection of the ex- 
isting method of allocating operating subsidies and modernization 
funding to public housing authorities across the country. While I 
have some questions about the exact nature of that protection, 
which I shall direct to Chairman Gam at the appropriate time, 
public housing management should feel reassured that Congress 
will be vigilant in its oversight of HUD. I fully support these and 
other congressional efforts to inject a measure of stability into Fed- 
erfil housing assistance programs for the poorest families in Amer- 
ica. 

The legislation before us today draws from S. 1338 and H.R. 1 to 
enact a vital new rental production pri^ram, a signiiicant portion 
of which will be devoted to new construction of rental units. Since 
the elimination of the section 8 construction and rehabilitation pro- 
grams, many of us in Congress have been struggling to devise a re- 
sponsible way to help local communities meet the rising demand 
for affordable low- and moderate-income rental housing, an eH'ort 
of special importance to States with older housing stock such as my 
own State of Pennsylvania. 

I am also pleased that we have extended the successful Federal 
community development programs, I supported efforts to clarify 
congressional intent requiring that low-income Americans be the 
principal beneficiaries of the community development block grant 
program. The prospective improvements in the small cities portion 
of urban development action grant program are especially wel- 
come. It is about time that we made the small cities UDAG pro- 
gram more workable, particularly for those jurisdictions suffering 
the severest long-term economic hardship. By adding the best avail- 
able measure of unemployment in small communities, the labor 
surplus area designation, to the eligibility criteria for the small 
cities UDAG prt^am, Congress will give nearly 2,000 of the most 
distressed small jurisdictions, including 200 in Pennsylvemia, the 
opportunity to use this vital economic development tool. This is a 
change I sought legislatively ob well ob administratively in a letter 
to 0MB Director, David Stockman, in September. 

Mr. President, I am pleased to see that many provisions benefi- 
cial to elderly housing are part of the compronuse bill. As chair- 



yGoot^le 



man of the Special Committee on Aging, I have monitored closely 
the provisions in S. 1338 and H.R. 1 which affect the housing needs 
of older Americans. This bill wilt cap the interest rate for section 
202 loans at 9.25 percent; preserve the ability of aged households to 
deduct excessive medical expenses from their income prior to calcu- 
lating their rent share; and retain the nonprofit sponsors' option of 
negotiating contracts or getting competitive bids in most cases. 

Ihave strongly supported these provisions as they provide impor- 
tant protections for elderly residents. I am gratified to see that $6.8 
million is provided for 14,000 units of section 202 housing for the 
elderly and handicapped. I understand that a provision in H.R. 1 to 
expand the 202 program to 36,000 units beginning in 1985, offered 
by Representative Lundine, was dropped during conference. It was 
felt by the conferees that the proposal required further study. 

Last July, I introduced similar legislation, S. 1648, to modify and 
consolidate current Federal programs providing housing assistance 
for elderly and handicapped households. At that time, I emphasized 
the fact that this l^islation did not represent the one and only so- 
lution to. the housing needs of the elderly and handicapped of this 
country. Also, because of the revised financing and subsidy mecha- 
nism and the inclusion of for-profit sponsors in the proposal, I 
stressed the need for further budgetary analysis and a public 
forum on the bill. Accordingly, as chairman of the Aging Commit- 
tee and as a senior member of the Housing Subcommittee of the 
Senate Banking Committee, I plan to push for a series of hearings, 
b^inning in February, on housing for older Americans, with the 
first on S. 1648 and the section 202 program. 

In order to prepare for this hearing and to assure that we have 
the most current data on the present section 202 prc^am, the 
Senate Aging Committee is now conducting the first comprehensive 
survey of all section 202 projects across the country. The results 
will give Congress £md elderly housing advocates a detailed picture 
of the current 202 population and those waiting for 202 units. 

Mr. President, Federal housing programs are currently providing 
assistance to more than 3 million older Americans. The section 202 
pnwram is the most well known of the Federal housing programs, 
and preliminary results from the Aging Committee survey under- 
score the immense demand for this specially designed housing. Yet, 
less than 6 percent of all federally assisted unite occupied by the 
elderly have been constructed under this pn^am. The primary 
sources of assistance are the section 8 and public housing pro- 
grams. We must examine these Federal programs and other pri- 
vate sector options for housing elderly families in light of the dra- 
matic growth of America's older population. I plan to develop com- 
prehensive elderly housing legislation in 1984. 

In the community development title of this bill. Congress has 
also enacted the Neighborhood Development Demonstration Act, a 
bill I first introduced a year ago with Senator Hatfield. Reintro- 
duced in Feburary, 1983 with bipartisan support as S. 586, the leg- 
islation was accepted in both S. 1338 and H.R. 1. It establishes a 3- 
year pn^am to demonstrate public/private partnerships for job 
development, small enterprise development, and community revi- 
talization by neighborhood groups. This legislation complements 
recent efforts by the Ford Foundation and the Local Initiative Sup- 



yGoot^le 



port Corporation (LISC) in Pittsbui^h, Philadelphia, and elsewhere 
across the country. 

Unfortunately, his package does not include another bill, S. 846, 
I introduced to assist unemployed homeowners avoid the tragedy of 
foreclosure on their homes. This legislation, I might add, was 
agreed to by the Senate Banking Committee when it reported S. 
1338 in May 1983. Due to objections persistently raised by the ad- 
ministration, the leadership in both houses of Congress was com- 
pelled to drop any language on mortgage foreclosure assistance 
from the compromise packe^e before us today. 

Mr. President, I have repeatedly stated my intention to offer an 
amendment on mortgage foreclosure assistance to the housing bill 
when it reached the Senate floor. I and Senator Riegle, my cospon- 
sor, have felt that we owe it to our constituencies — the unemployed 
factory workers in our States whose unemployment compensation 
is running out and whose home mortgage payments are already de- 
linquent — to make every effort to pass foreclosure assistance legis- 
lation. Our colleagues may recall that we offered a much reduced 
Eimendment to the fiscal year 1984 HUD appropriations bill in July 
1983 which was not accepted by the Senate. 

Members of Congress who have followed the negotiations on this 
housing package know that we attempted to have included modest 
language allowing mortgage foreclosure assistance to be an eligible 
activity under the CDBG program and authorizing the Secretary of 
HUD to use discretionary funds to provide such assistance in areas 
of the country hardest hit by unemployment and high mortgage de- 
fault rates — areas like the Monongahela Valley in western Penn- 
sylvania. We were rebuffed again by colleagues, both Democratic 
and Republican, who did not want to jeopardize the progress of the 
negotiations. 

Mr. President, this has been a difficult situation for me to accept. 
I am deeply disappointed by the fact that this legislation was never 
given fair consideration by the administration. And while I am, of 
course, extremely pleased that this Nation appears to be enjoying a 
steady economic recovery, I urge my colleagues to remember that 
there are regions of this country where hardship is ob severe as 
ever. Unemployment and mortgage delinquency rates are not de- 
clining in areas where smokestack industries remain depressed — 
places like Gary, Ind., where 20 homes a week go into foreclosure 
and in Allegheny County where nonprofit E^encies like Action 
Housing are running out of the means to help the steadily increas- 
ingstream of pleas for assistance. 

There were nearly 500,000 home loans past due at the end of the 
first quarter of 1983. There were 60,000 homes edready in foreclo- 
sure. That is 60,000 families — fathers, mothers, sons, and dai^h- 
ters — who were forced to give up their stake in the American 
dream, 

Mr. President, I have reluctantly agreed not to offer an amend- 
ment to this housing bill. The country can no longer look to the 
Federal Government for quick action on this matter. I will look to 
the wise and responsive leadership of nonprofit organizations, of 
sympathetic lending institutions, of local city and county executive 
and judicial officials, and of legislatures in my home State of Penn- 
sylvania and ot^er States where mortgage foreclosure assistance 



yGoot^le 



Icfiislatum is pending. I will continue to urge all those in govern- 
ment and in the private sector to forebear on mortgfige delinquen- 
cies wherever possible. 

The Federal Government must continue to do what it can to help 
low-income Americans find decent housing; it must address the 
question of how this Nation intends to house its growing elderly 
population; it must continue to make it [>ossible for young Ameri- 
cans to buy their first homes; and I would hope, Mr. President, that 
it will in the future fulfill a responsibility to help those hard-work- 
ing Americans who through no fault of their own are temporarily 
out of work and who have invested their life's savings in a home. 

In sum, Mr. President, as one who has been pressing since May 
for passage of a housing authorization bill, I am encouraged by the 
progress we have made in this legislation. Probably no one who has 
worked on the bill is completely satisfied with the results — that is 
the nature of compromise. Congress and the administration have 
more work to do on national housing policy and in my capacity as 
a senior member of the Senate Banking Committee I will continue 
to push for responsible Federal responses to the overriding housing 
needB of poor, elderly, and unemployed Americans. 

Mr. Gabn. Mr. President, I would compliment the distinguished 
Senator from Pennsylvania because he has spent a total of weeks 
and months in the IMF section of this bill and has a great interest 
in that portion of it. He is chairman of the International Finance 
Subcommittee of the Banking Committee. I wish to thank him for 
all his work in that area, without which we would not have passed 
the IMF bill in the first place earlier in the summer. 

I see Senator Dodd is about to seek recognition. Rather than in- 
terrupt again, I would like to thank him and Ed Silverman of his 
staff for the very important role they played and their help on the 
housing section of this bill. We appreciate that very much. 

Mr. Dodd addressed the Chair. 

The Presiding Officer. The Senator from Connecticut. 

Mr. Dodd. Mr. President, I join with my other colleagues on this 
side of the aisle. This is not a memorial service for Jake Garn, but 
a lot of us feel that without his perseverance, we would not be at 
this particular juncture. He has done a remarkable job in holding a 
negotiating process together, which is a very difficult thing to do. 
This process has been maligned significantly here this afternoon. I 
would just like to make a couple of points on the procedure. 

We do not operate like the textbooks told us we were going to 
operate. This is not the first time and it will not be the last time. It 
is not a particuleu'ly attractive sight, the tools that have been used 
over and over, and the two things people should not witness in pro- 
duction, the production of sausage and laws, which certainly ap- 
plies to this particular effort from a procedural standpoint. I want 
to emphasize this does occur and it has over our long history. I pre- 
sume it will again. Enough said on that. 

With regard to the issue of compromise, I have heard a number 
<rf' people rise emd say compromise is somehow an ugly word in all 
rf this. How else do we Etccomplish anything short of compromise? 
You take strong people with strong views who work hard on issues, 
and if you have any hope at all of moving forward in vital areas, 
whether it be international monetary policy or export policy or cer- 



yGoot^le 



370 

tainly something as important to all of us as housing, it takes com- 
promise. That is, in fact, the deflnition of politics, in effect, the art 
of compromise. For those who have suggested that this is not a 
worthwhile way to proceed, I would again strongly commend the 
efforts of the Senator from Utah, the Senator from Wisconsin, Sen- 
ator Proxmire, and Senator Riegle, who I think have worked tre- 
mendously hard and long to see that we arrive at the point we are. 

As the Senator from Utah, Jake Garn, has pointed out, the chair- 
man of our committee, the housing section of this is something I 
have a particularly strong interest in. I think we have done a good 
job. It is not eve^hing I wanted. He knows that. I would have 
wanted more, frankly, in this area, but I think it is an excellent, 
excellent beginning. 

Overall, I would consider it, frankly, as part of this whole pack- 
age, the most important aspect of the legislation we have moved 
forward on. It is a modest new initiative contained in title III to 
establish a program of rental housing, rehabilitation, and develop- 
ment grants. 

On the bill itself, I can only say that the proposal before us rep- 
resents a compromise of some very divergent views in this counti^. 
Everyone was forced to make some concessions. I am sure that we 
will all feel there are some positive and negative aspects to the 
package as it is before us. 

But the bottom line, as viewed by this Senator, is a positive one. 
We have reauthorized and improved targeting of community devel- 
opment progams, which is essential for our cities. Important 
changes have been accomplished in our assisted and insured hous- 
ing programs, an extremely important effort. Most significantly, we 
are addressing the major void in rental housing policies by reestab- 
lishing and properly defining the Federal role with respect to reha- 
bilitation and development of rental housing for low- and moder- 
ate-income people in this country. This is the first time in 2% 
years we have been able to do something in this area. While it is 
not everything I wanted, I think it is a very important feature of 
this legislation. 

On this latter issue, Mr. President, I want to signal my endorse- 
ment of the proposed rehab and development grant program. This 
program responds to the general need and incorporates m^or por- 
tions of legislation I introduced over 2 years ago with Representa- 
tive Charles Schumer of New York. Over the next 18 months, $600 
million will be available to States and localities for block grants for 
moderate rehab or targeted discretionary grants for the develop- 
ment of modest affordable rental housing. Like prior programs in 
this r^ard, the Federal program is not committmg resources over 
an extended time. It is not assuming the total risk. These are 
highly leverfiged initiatives and in mtuiy aspects are structured in 
a similar manner to the very successful community development 
block grant and urban development action grants program of years 
past. 

Assistance under either allocation mechanism is highly targeted 
to both individuals and areas with objectively measured needs. 

Finally, the practice not only emphasizes leveraging of Federal 
funds but in addition requires the most prudent use of these limit- 
ed resources. 



yGoot^le 



THE miLTILATERAL DEVBLOPMENT BANK REPLENISHMENTS 

Mr. President, I riBe today to aupport provisions of this amend- 
ment which authorize U.S. participation in the pro[>osed replenish- 
ments of three key multilateral development institutions — the 
Inter-American Development Bank, the Asian Development Bank, 
and the African Development Fund. The Committee on Foreign Re- 
lations held hearings on these requests and, after careful review, 
recommended that the Senate give it favorable consideration. The 
House has already acted favorably on similar legislation. 

Little needs to be said with respect to the African Development 
Fund replenishment request, as the Senate considered an identical 
request during the last Congress and passed legislation without ob- 
jection. It is only because the House failed to act on the bill before 
the Congress adjourned that we have once ageiin been asked to con- 
sider it. In fact, subject to favorable action on the authorization 
bill. Congress has already approved appropriations of $50 million in 
fiscal year 1983 as the first installment, in the $150 million 3-year 
replenishment. 

The replenishments of the Inter-American Development Bank's 
(IDB) ordinary capital account and its concessional loan window — 
the Fund for Special Operations (FSO), together with the replenish- 
ments of the ordinary capital of the Asian Development Bank 
(ADD) and its concessional afHliate, the Asian Development Fund 
(ADF), are the first multilateral development bank (MDB) replen- 
ishments negotiated by the Reagan administration and submitted 
to the Congress for its approval. As I am sure all of my colleagues 
know, the Reagan administration came into office highly skeptical 
of the utility of continued U.S. participation in these institutions. 
However, after an exhaustive review by the Department of the 
Treasury, the administration was forced to conclude in the compre- 
hensive report of its findings, "U.S. Participation in the Multilater- 
al Development Banks in the 1980's," that "the MDB's • • • have 
been most effective in contributing to the achievement of our 
global economic and financial objectives." 

It m^ht be useful to take a look at some of the factors which I 
am sure helped to convince the Reagan administration that contin- 
ued support of the MDB's would be in the economic and foreign 
policy interest of the United States, First, the MDB's activities 
have proved to be significant in stimulating overall investment and 
fostering economic growth in the developing world. In the case of 
the IDB for example, the $22 billion of loans made in the course of 
its 23 years of operation have served as the catalyst for invest- 
ments totfiling $85 billion in Latin America. 

The MDB's have been able to provide significant amounts of fi- 
nancial Eissistonce to developing countries in a cost-effective 
manner. The proposed replenishments continue that practice. In 
the case of the ADB, for example, as little as $13 million in U.S. 
appropriations annually would enable the ADB to make loans to- 
taling $12 billion over the next 5 years. Similarly in the case of the 
IDE, annual U.S. appropriations of only $145 million will contrib- 
ute to a $14 billion loan program during 1983-86. Given the tight 
budgets which most countries face today, these institutions enable 
us to maximize U.S. assistance to developing countries, friendly to 



yGoot^le 



372 

us and our allies, at the least possible cost to the Treasury and the 
U.S. taxpayer. In fact, if one analyzes the annual cost of U.S. par- 
ticipation in these proposed replenishmentfi, one discovers that it is 
only slightly more than $338 million, and represents a 15-percent 
reduction from current U.S. commitments to the MDB's. 

Continued U.S. participation in the MDB's, the primary develop- 
ment institutions serving their respective regions, helps to meet 
important U.S. foreign policy goals. The IDE, for example, is the 
primary source of official assistance for the nations of the Caribbe- 
an region — a region which the President felt was bo important to 
our national security and foreign policy interests that it warranted 
extraordinary assistance from the United States in the form of the 
Caribbean Basin Initiative. Similarly, the President's recent trip to 
the Asian and Pacific region emphasizes the importance the U.S. 
accords in foreign policy terms to the region which depends on the 
ADB for funds and technical assistance to meet its economic devel- 
opment objectives. 

In countries where poverty is at the root of revolutionary fervor; 
eliminating hunger, eradicating disease, and providing jobs for 
people are the soundest methods of fostering political stability. In 
this regard, the MDB's have a proven track record of successfully 
reaching out to the poorest peoples of these countries, making day- 
to-day existence more tolerable and fostering a spark of optimism 
about tomorrow. Not only do our contributions improve the materi- 
al conditions of people in these regions, and foster good will region- 
ally and internationally, but it also serves to thwart propaganda ef- 
forts by those who would seek to portray us as concerned only with 
winning the political victories of propping up right-wing dictators, 
and not with improving the lives of the vast majority of people who 
live there. For these reasons I believe that our firm support for the 
MDB's is necessary and wise. 

In conclusion Mr. President, I believe that continued support for 
the multilateral development banks makes sound economic and for- 
eign policy sense, as these institutions complement our bilateral ef- 
forts as well as the efforts of the IMF in fostering a stable and 
growing international economy. U.S. national security interests 
continue to benefit from our participation. Therefore, I urge my 
colleagues to give their endorsement to these replenishment re- 
quests. 

In conclusion, Mr. President, I want to also acknowledge the con- 
tributions, as I have, of Senator Tower of Texas, of Senator Prox- 
mire, the ranking minority member of our Banking Committee, 
and Senator Riegle, of Michigan, for their work in getting this leg- 
islation to this point, and for their accommodations to this particu- 
lar Senator for several provisions in addition to those I have just 
highlighted in these remarks. 

Again, Mr. President, let me associate myself, if I may, with the 
remarks of my minority leader, the Senator from West Virginia, at 
the outset of this discussion. He appropriately points out that this 
is not the best way to run a railroad. But we are in that awkward 
position, as we have been in the past and I presume before I leave 
this body we will be in again. It is advisable for us to avoid it but 
when we cannot, when we have important measures before us, we 



yGoot^le 



373 

have to m forward this way if we are goin^ to get things done. So I 
commena again the chairman of the committee for his work. 

Mr. Presioent, I yield the floor. 

Several Senators addressed the Chair. 

The Presiding Officer. The Senator from Colorado. 

Mr. Arbibtrong. Mr, President, if the Senator from New Jersey 
wishes me to withhold for a couple of minutes, I will do so. 

Mr. Lautenberg. I appreciate my colleague's yielding. 

Mr. President, I will not take much of the Senate's time now, but 
1 want to briefly express my thanks to those with whom I have 
worked on this legislation regarding housing. I commend the chair- 
man of the Banking Committee, without whose cooperation we 
would not be approving this housing bill today. I also thank the 
ranking minority member. Senator Proxmire, and the ranking mi- 
nority member of the Housing Subcommittee, Senator Riegle, for 
their work in accomplishing what was a difficult compromise. 

In my work on this bill as a member of the Housing Subcommit- 
tee, I found the leadership of the committee and their staff to be 
cooperative and sensitive to the needs of my State. While there are 
elements of the bill I supported in the committee which are not in- 
cluded in this bill, many of the issues of importance to New Jersey 
have been addressed. I am pleased to have been able to play a part 
in their resolution. 

There is a crying need for new construction and rehabilitation of 
rental housing in New Jersey. I want to commend the Senator 
from Connecticut Senator Dodd, for his authorship and his partici- 
pation in the development of this legislation. 

Community development block grants and urban development 
action grants extended under this title for 3 years are of vitol im- 
portance to communities in my State. Low- and moderate-income 
citizens will be served well by this bill and local housing conditions 
and circumstances will be addressed, as well as housing for the eld- 
erly and support for public housing operations. 

While the procedure is one that I continue to learn about here, 
and it may be faulty, 1 do strongly support this housing bill. 

Mr, President, I rise in support of this amendment to provide au- 
thorizations for the Nation's housing and community development 
programs. With the possible exception of general revenue sharing, 
no l^islation has been of more interest to local governments in 
New Jersey. Nor is any legislation more important for local eco- 
nomic development than the passage of this housing and communi- 
ty development bill. 

Communities throughout New Jersey rely heavily on community 
development block grants and urban development action grants to 
provide jobs and a healthy living environment. The need for addi- 
tional housing in New Jersey is critical, particularly for those of 
low and moderate income. With vacancy rates well below the na- 
tional average in many of our cities, there is a crying need for new 
rental construction in New Jersey. 

Mr, President, several provisions of this bill are especially impor- 
tant to me. They are: 

A 3-year authorization for community development block grants 
which means in excess of $100 million in funds to New Jersey com- 
munities. 



yGoot^le 



374 

Reauthorization of the UDAG program which brought $80 mO- 
lion to New Jersey last year. 

Protection of those communities who due to population loss or 
other changes in formula allocation were in danger of losing their 
CDBG entitlement status. In New Jersey the affected communities 
include Hoboken and Hudson County, Asbury Park, Sajrrevilie, 
Long Branch, Parsippany-Troy Hills, and Bloomfield. 

Creation of a new rental rehabilitation and construction pn^ram 
at $615 million over 2 years to produce and repair rental housing. 

Increases the allowable percentage of community development 
block grant funds which can be used for social services from the 
present 10 percent to 15 percent and also allows those communities 
which utilized a higher than a 15 percent level in fiscal year 1983 
(excluding funds under the jobs bill passed earlier this year) to 
maintain a higher than 15 percent level of social service funding. 

Continuation of the urban crime insurance program which has 
been used to insure against residential and commercial loss due to 
urban crime in New Jersey and throughout the Nation. 

Provision of 14,000 units of section 202 housing for the elderly 
and handicapped, which brought over $20 million to New Jersey in 
fiscal year 1983 and produced 406 much-needed units. 

Coverage of necessary rent increases in State-insured section 236 
and 235 housing under the rental assistance and rent supplement 
programs. Ninety percent of these rent increases will be covered 
under this bill to preserve this housing for existing tenants. 

Mr. President, one of the principal controversies in the Banking 
Committee during consideration of housing legislation this year 
was whether the Federal Government should preempt local rent 
control laws as a precondition to receiving Federal assistance to re- 
habilitate or construct rental housing. I firmly resisted this on the 
basis of the strong tradition of home rule in New Jersey. I was also 
very concerned that denying local jurisdictions the flexibility to 
maintain their current practices might well lead to the trfigic dis- 
placement of low- and moderate-income people. This bill will not 
adversely affect current practices in New Jersey. The bill includes 
a grandfather provision sought by me in committee to insure that 
existing local ordinances would not be overridden. 

This legislation is the product of difficult negotiations. It repre- 
sents a rather painful compromise. This is not the bill I would have 
written if it was left to me to write it. Nevertheless, the bill is the 
first housing authorization bill approved by the Congress in several 
years. It gives much needed direction and assistance to our Na- 
tion's housing [>olicy. I urge its adoption. 

Mr. Armstrong. Mr. President, depending on who you listen to, 
this IMF provision is the cornerstone of a sound economic policy 
which will set the stage not only for international monetary stabili- 
ty but for the restoration of the kind of growth and prosperity in 
this country and abroad that we all long for. It will lead to a reduc- 
tion of unemployment, better relations between countries, an up- 
surge of trade. Or, if you listen to other sources, it is nothing lees 
than a bailout of the big banks, an egregious affront not only to tiie 
financial well-being of our country but in fact it is a ripoff. 

I suppose the truth is somewhere in between. My own feelii^ is 
that this is not so much as a bank bailout but it is a bank bail-in. If 



yGoot^le 



we pass this IMF section, we are not bailing the banks out of these 
bad loans; we are encouraging them to take themselves even 
deeper into the hole that they are in. 

I am not going to talk about the jobs argument or the financial 
stability argument. Frankly, I just do not think the case has been 
made. If we could buy economic prosperity for $8 billion, I would 
say let us buy a double load emd authorize $16 billion. I just do not 
believe it. I do not think that case has been persuasively made, so I 
am not disposed to deal with it at any length at this point. I do 
want to look at some of the banking issues involved, because I am 
honestly convinced, as are many of the most thoughtful observers, 
including many bankers, including leading economists and others, 
that by passing this IMF legislation in its present form, we are 
likely to make the situation worse rather than better. Far from fos- 
tering reform, we are likely to retard reform. 

The problem for the United States is that many of our major 
banks are already vulnerable because they now hold a large 
amount of questionable loans to Brazil, Mexico, and other Third 
World countries. Normally, these loans would be rated nonperform- 
ing and the banks would have to write them down. 

This process would be painful to some of the financial institu- 
tions involved. It would mean that the banks would bear some 
costs, the same kinds of costs that banks ordinarily bear when they 
make nonperforming losms. If you or I fall behind on a loan to our 
neighborhood banker, it is rated as nonperforming and at a very 
early time, it is written down on the bool^ of the bank. 

I do not see that, from a banking standpoint, from the standpoint 
of sound financial practice, it is wise to permit these extraordinari- 
ly lEirge, infinitely larger loans to be treated in a different way. 

It would be costly for the banks to follow that normal business 
practice. It would not be, in my opinion, nor the opinion of many 
others — officials who have served in the highest positions of our 
Government, like former Treasury Secretaries, people who have 
headed large banks like the former chairman of the Chase Manhat- 
tan Bank, economists like Paul Craig Roberts, Milton Friedman, 
and others — it would not be catastrophic. 

It would be painful, but it would be the best medicine. But there 
would be a cost. 

Borrowers would £dso have to bear a portion of the cost. They 
would have to b^n to perform on these loans if they are going to 
ccmtinue to enjoy access to capital markets, thus would have every 
incentive to take the steps necessary to improve security positions 
of their banks. For example, they might be called u[x>n to put up 
some collateral or to expand the equity position of their creditors 
in tjhe enterprises or to agree that subsequent debt disputes might 
be arbitrated in U.S. courts. Neither the banks nor the creditor na- 
tions nor creditor entities would be happy with this kind of devel- 
opment, but I say to my colleagues in the Senate, these are not 
^od loans and it does not matter — that is to say, some of them are 
not. Ot course, some are. But the loems that have gotten us into a 
jam are not performing loans and whether we call them something 
else, liie notion of increasing the IMF authority so we can extend 
more money to countries who are not performing on their loans so 



yGoot^le 



376 

they can perform in part, is really, when you boil it down to its 
simplest essence, a very flawed idea. 

In fact, I guess I would have to report to you that out our way, it 
seems like kind of a foolish idea. Why would we want to pump out 
more money in order to get just a part of it back? That is what this 
whole rescheduling idea is all about. 

The notion behind this IMF increase is that, somehow, we can 
avoid the hard choices. The IMF arranges for new funding that 
permits debtor nations to continue servicing existing loans and we 
play a game of "let's pretend there is no crisis" when we all know 
there is a crisis. I do not think that is to the benefit of the banks, 
nor to the benefit of debtor nations, either. 

The debtor nations do not benefit, either. Political leaders and 
the various creditors are encouraged to defer any hard adjustment 
decisions. Instead, they negotiate with the IMF to determine what 
minimum conditions must be met. Since these burdens will be allo- 
cated politically, we can be sure that they will fall on the less po- 
litically powerful groups. 

So, Mr. President, we have a "bail-in" provision, instead of bail- 
ing anybody out. We are not bailing out the debtors, not bailing out 
the banks, we are instead postponing the day of reckoning and 
hinting or implying there will not have to be a day of reckoning; 
maybe we can just postpone the whole problem. 

How did the IMF get into such a delicate situation? Originally, 
the IMF was intended to handle short-term currency fluctuations 
associated with fixed exchange rates. External events could create 
currency shortages which would require formal Government action 
to alleviate and that might take time: Thus the IMF was created to 
provide short-term bridging liquidity. When floating exchange 
rates were introduced in 1973, this rationale for the IMF vanished. 
IMF lending in such circumstances would only impede the normal 
a<^ustment6 of exchange rates and encourage nations to interfere — 
to "dirty" the float. 

However, another rationale for the IMF operation was found. 
The IMF would play the expert credit assessor-credit advisor role. 
When nations got into trouble the IMF would intervene, determine 
a plan to restore its economic health and then monitor the nation's 
adherence to the plan. To make acceptance of these, at times, 
rather harsh plans more palatable, the IMF would itself lend 
funds. This lending role was thought to be the "spoonful of sugar" 
to help the medicine go down. 

In some cases, Mr. President, I think it has worked out in that 



Thei 



here are also problems with this approach, the most serious of 
which is that the IMF's lending authority would be in conflict with 
its credit assessment role. In this role, the IMF is to determine 
whether the prospects for loan repayment justify banks to lend 
more. As a lender, however, IMF wants to keep the loan cycle 
churning. Banks may then decide to lend to the debtor nation not 
because they believe IMF's credit assessment, but because they be- 
lieve the IMF has gotten itself into the same boat and therefore 
would not let the boat sink. 

That is the argument we have heard over and over in private, 
that we are so deep in this thing that we cannot pull the plug. Mr. 



yGoot^le 



377 

President, I do not believe we are in that kind of crisis, but I think 
we could be going in that direction. There £ire some places where 
the loans could b«»me so large that there will not be any solution, 
there will not be any way out through normal banking practices. 
We are not in that situation at this point. 

Mr. President, 1 think it is a mistake for us to enact this legisla- 
tion. However, I must say that I am impressed by the prestige and 
sincerity of those who are advocationg its passage. I am not so sure 
that I would be willing on my own recc^nizance to urge the Senate 
to turn down this legislation, just to say that because the idea does 
not seem sound to me, I would want to buck the influential and the 
thoughtful persons who are backing this legislation. It so happens 
that there fire as many and [>erhaps more of the most thoughtful 
and the best informed experte on this subject who eigree with the 
position I have just outlined than there are who say we ought to go 
ahead and pass this. I wish to quote briefly from a letter from Dr. 
Bililton Freedman, the Nobel Prize-winning economist, who, on Sep- 
tember 23, wrote to our colleague, Representative Clarence Long, 
who is the chairman of the Subcommittee on Foreign Operations of 
the Committee on Appropriations which has jurisdiction over this 
matter. 

By the way, Mr. Long told me yesterday that he is very much 
opposed to t^e passage of this proposal. Here is what Dr. Friedman 
wrote: 

I write to expreM my opposition to the proposed increase in the IMF quota on 
whkh your subcommittee is holding hearings, 

"Hie IMP was founded to preside over the system of fixed exchange rates estab- 
liihed by Bretton Woods. Its power to make loans was created to facilitate that func- 
ticm, not to enable it to become a central bank, or a lender of last resort, or a savior 
W banks that have made bad loans. 

Dr. Friedman goes on at some length. 1 do not intend to quote 
the letter in its entirety. I shall, in a minute, send it to the desk 
and ask that it be printed in full. Let me read the conclusion Dr. 
Friedman reeiches. 

In consequence, I strongly oppose any increase in the IMF quota. 

I send this letter to the desk and ask unanimous consent that it 
be printed in the Record at this point. 

Mr. Pbrcy. Mr. President, we have before us today a vitally im- 

Grtant l^islative package. This package includes housing, Export- 
iport Bank, International Monetary Fund, and multilateral de- 
velopment bank legislation. 

There is a common thread which holds the contents of this pack- 
age together, American workers will be helped by each of the four 
pieces of l^islation contained here. Our unemployment will be re- 
duced. Our economic recoveiy will be furthered. In the judgment of 
the President of the United States, particularly with respect to the 
International Monetary Fund, by our taking positive action as he 
has strongly recommended, we could help ward off what might 
become a worldwide depression if we have a catastrophic ffiilure or 
bankrupty by country after country if they cannot be at this time 
of world recession eissisted and helped. 

Hie chairman of the Betnking Committee has addressed in detail 
the housii^ and Export-Import Bank portions of this legislation. I 



yGoot^le 



378 

want to confine my remarks to the Internationa] Monetary Fund 
and Multilateral Development Banks. 

The Senate has already acted on the IMF authorization legisla- 
tion. What Members have before them today represents the care- 
fully worked out compromise between the House and Senate au- 
thorization bills. I need not rehearse in detail for my colleagues the 
reasons why action by Congress on this legislation is absolutely 
necessary. Though we will provide only about 20 percent of the ad- 
ditional resources for the IMF, other countries are awaiting our 
lead before fulfilling their pledges. 

At a time of continuing global recession we must not abstain 
from fulfilling our role as the leader of the free world. Only the 
Soviet Union gains from economic disruption in the Third World. 
The IMF plays an important role in avoiding such disruption. 

But we must be candid. Not just our leadership is at stake here; 
our self interest is caught up as well in the fate of the IMF legisla- 
tion. As I said, President Reagan has made this clear. Restoring 
the health of the U.S. economy depends heavily on reviving U.S. 
exports. But our exports require foreign markets and those mar- 
kets are being adversely affected by the global recession. 

To cite only one example, according to the U.S. Department of 
Treasury. 

U.S. exports to Brazil fell steeply in the first half of 1983 following moderate de- 
clinea in 1981 and 1982. The U.S. exported only $1.22 billion January-June, 1983, 30 
percent lower than the level of $1.76 billion for the first half of 1982. 

The IMF is absolutely critical to the economic recovery of Brazil 
and other major markets for U.S. exports. 

This is not an abstract issue for this Senator. Last year Illinois 
companies exported over $360 million in goods and services, repre- 
senting over 10,000 agricultural and manufacturing jobs in our 
State, to 9 countries on the IMF troubled country list. 

Illinois needs the IMF and the IMF in turn needs access to in- 
creased resources. 

That could be said by many, many Senators. Every Senator that 
is from a State that depends upon export for jobs would be adverse- 
ly affected if we do not act wisely and properly in accordance with 
the request of the President in this regard. 

Let me now turn to the multilateral development bank legisla- 
tion. 

The legislation before us provides for replenishments for the Af- 
rican Development Fund, the Inter-American Development Bank, 
and the Asian Development Bank. 

The Senate Foreign Relations Committee received testimony Ifist 
winter from Secretary of the Treasury Donald Regan that — 



„ „ . . irtlcipatK 

represents a significant part of both present and projected U.S, foi 

The multilateral banks are the largest official source of external 
capital for the lesser developed countries (LDC's). Furthermore, 
multilateral development bank lending is an important catalyst in 
generating other resources. The U.S. tax dollar, in short, goes far. 

The statistics speak for themselves. For every one dollar the U.S. 
contributes to the Multilateral Development Banks other members 



yGoot^le 



379 

contribute $3. These banks in turn borrow on the capital markets 
generating additional lendable resources. For example, for every 
dollar the United States contributes to the World Bank, the Bank 
lends over $60. 

Let me conclude by saying I am sure that some of my colleagues 
may have problems with certain elements of this package. I do not 
approve of every single feature of what is, after all, a substantial 
document. I do believe on balance that the package serves our na- 
tional interests. I urge its passage. 

I wish to thank my distinguished colleague very much, indeed, 
for his thoughtfulness in yielding at this time, and to express my 
tremendous respect for his tenacity, his determination, and the 
perspective from which he causes the Senate to look at a great 
many of these issues. So many times in the past we sort of passed 
over lightly and let them go without very, very close examination. 
He is forcing the Senate to take a good hard look at these matters, 
in addition to the growing concern I have along with my distin- 
guished colleague about the national debt and what we are going to 
do about it. It has given us all cause for thoughtful concern — how 
we face up to this issue. The question, "What are we going to do 
about it?" that he puts to us I feel very deeply is put to me as a 
Senator from the State of Illinois, and I intend to do something 
about it. I will try in every way I possibly can to further the objec- 
tive of our distinguished and respected colleague. 

Mr, Armstrong. Mr. President, I want to acknowledge my tre- 
mendous appreciation to my friend from Illinois for his generous, 
indeed, his flattering comments about my participation, which are 
far more generous than I deserve. 

I am especially conscious of the task I am undertaking here 
today because we are on opposite sides, and his statement and his 
interest in passing this IMF bill give me pause because I know he 
is an authority on this matter and has provided admirable leader- 
ship. It pains me to be at cross purposes with him in this matter. I 
am sorry that fate has cast us in this role and I truly hope it will 
not often be so. 

Mr. Percy. If we differ on some issues, let me just give a report 
at this time on one issue where we stood side by side, the fact that 
we have $147 billion in debts owed the U.S. Government, $43 bil- 
lion in deficits in default and we ought to do something about it. 
We worked together on legislation that gave the power to the Fed- 
eral Government and this administration, when it was refused by 
the last administration and the last Congress, Senate and House, to 
even consider it. We grasped onto it. It is now law. And without 
raising taxes, $4 billion of new money will come to the Federal 
Treasury reducing our deflcit by that amount simply by giving five 
additional powers to the Federal Government to go out and collect 
our debts. 

I thank my distinguished colleague for the support he gave to me 
in the l^pslation I offered in that regard. 

Mr. Armstrong. Mr. President, on the contrary. We are all in- 
debted to the Senator from Illinois for his leadership on that, and I 
just hope he has some more ideas like that because we sure need to 
save some money. 



yGoot^le 



Mr. RiEGLE. Will the Senator yield so that I might address some- 
thing to the Senator from Illinois before he leaves the floor, related 
to what he just said? 

Mr. Armstong. Of course, I will be happy to yield. 

Mr. RiEGLE. I want to address one question to the Senator from 
Illinois. We are proposing here to spend billions of dollars overseas 
through a variety of devices. Like the Senator, I think it may be 
necessary that we do it, although I do not like it, and I am troubled 
about it. But by the same token, we are doing very little for people 
in this country. I may be offering later an amendment to provide 
health insurance for unemployed workers in the Senator's State, in 
mine, and in the rest of the 50 States. I am wondering, in light of 
the fact that I listened to his appeal on the need to spend literally 
tens of billions of dollars abroad, if we are going to be able to use 
the same logic to defend spending a tiny fraction of that for health 
insurance for unemployed workers in Illinois and in Michigan and 
other States, and if the Senator will be prepared to support such an 
amendment as part of the package of responses to crises at home 
as well Eis Eibroad. 

Mr. Percy. I am conversant with this legislation and sympathetic 
with his compassion for the unemployed. Illinois is only exceeded 
by a few States — West Virginia, Michigan — in unemployment level. 
We have a very high unemployment level. But what would be the 
cost of this new entitlement program in the first year, the second 
year, the third year, and the fourth year? 

Mr. RiEGLE. Yes. 1 can tell the Senator that I can lay that out in 
detail. But first the Senator should know that we have worked out 
on a bipartisan basis an agreed-upon packeige where there will be 
adjustments in the tax laws to provide the funding, the full cost of 
this program, so that this program will not have an effect upon the 
deficit. 

That has been worked out with Senator Dole in the Finance 
Committee and other Members on the Senator's side of the aisle. 
Senator Quayle, Senator Heinz and others, so that we have an au- 
thentic bipartisan packf^e which is self-financing from a budget 
point of view. 

So I would hope this would be something that the Senator could 
support. 

I wish to say, frankly, we are at a point here where I do not 
think we can have appeals from the Foreign Relations Committee 
to be sending tens of billions of dollars out of this country and at 
the same time an unwillingness to respond to urgent human prob- 
lems at home. I think it is hypocrisy of the worst form, and I would 
hope that the Senator would feel that he could suppjort an initia- 
tive like that as long as we are responding here to emergency prob- 
lems. I might further say that my amendment could not create an 
entitlement. 

Mr. Percy. Mr. President, I shall briefly res[>ond. First, the Sena- 
tor could not possibly vote for a bill that I do not know the cost of, 
and I am glad to hear we will get the details later. I could not find 
out what the costs of this new entitlement program was the last 
time we were called upon to vote. 

There is the practiced problem we face, and I turn to the distin- 
guished manager of the bill and chairman of the Banking Commit- 



yGoot^le 



381 

tee for a reply on this: What we are faced with is the package here. 
The package has been agreed to by the House of Representatives. 
We either buy this package now and take it and do it, or we begin 
throwing people out of work in Illinois, Michigan, and all over Uie