Housing Act

Housing Act - Chapter I: Mortgage Credit Assistance - Revised National Housing Act - Title I: General Authority - Sets forth the definitions of terms used in this Act. Provides that to be eligible for insurance under this Act: (1) a mortgage or loan shall be made and held by a mortgagee or lender approved by the Secretary of Housing and Urban Development; and (2) the mortgage transaction shall be determined by the Secretary to be an insurable risk, with specified exceptions.

Authorizes the Secretary to guarantee mortgage bonds of local housing agencies for the purpose of financing multifamily housing. Provides that no bond shall be guaranteed unless the project financed is acceptable as a special risk by the Secretary. Empowers the Secretary to utilize the Special Risk Insurance Fund in conjunction with such guarantees. Enumerates additional powers and duties vested in the Secretary.

Provides that the Secretary shall not insure a mortgage or guarantee a mortgage bond covering property in any area which exceeds, by specified amounts, the appropriate prototype cost for the area. Prescribes the procedure for the Secretary to follow in determining prototype costs.

Directs the Secretary to prescribe the maximum interest rates which mortgages, loans or mortgage bonds eligible for insurance or guarantees under this Act may bear.

Requires specified water and sewer facilities to use technically suitable structural materials prior to mortgage insurance or guarantee approval under this Act.

Allocates sums appropriated for home ownership assistance payments and multifamily rental assistance payments, including sixty percent to metropolitan areas. Sets forth the requirements under which such allocated funds shall be made available to States, regional bodies, and units of local government.

Title II: Insurance Funds, Premiums and Charges - Provides that the General Insurance Fund, created by the National Housing Act, shall be used as a revolving fund for carrying out the Secretary's duties under that Act and specified obligations under this Act. Enumerates the circumstances under which the Special Risk Insurance Fund and the Cooperative Management Housing Insurance Fund shall be used by the Secretary.

Authorizes the Secretary to fix an insurance premium for the insurance of mortgages and loans under this Act. Provides that where the mortgagor is a serviceman specified rules apply as to the mortgage insurance premiums.

Empowers the Secretary to charge and collect from the mortgagee or lender reasonable amounts for the processing of applications, property appraisal and other services.

Title III: Insurance for Property Improvement, Historic Structure Preservation, and Mobile Home Loans - Authorizes the Secretary to insure financial institutions against losses from making, advancing credit, or purchasing property improvement loans, historic structure preservation loans, and mobile home loans.

Provides that the property improvement loan shall be for financing alterations, repairs, and improvements to existing structures, and the building of new structures, including the restoration of improvements which have been damaged by a natural catastrophe.

Specifies the qualifying criteria for mobile home loans and historic structure preservation loans and the terms for such loans.

Provides that the Secretary may declare ineligible for financing any item, alteration, improvement, or class thereof, which he determines would not substantially protect or improve the basic livability of properties to be improved by the financing.

Limits the insurance granted by the Secretary to any financial institution under this Act to either: (1) 10 percent of the total amount of the loans, advances of credit, and purchases; or (2) 90 percent of the amount of loss on any individual loan, advance of credit, or purchase.

Title IV: Home Mortgage Insurance - Authorizes the Secretary to insure a home mortgage (including open-end advances) meeting the requirements of this title. Provides that where the mortgage involves a one-family unit in a condominium, the Secretary shall establish requirements for the protection of the consumer.

Provides for maximum mortgage principal obligations of up to 85 percent for newly constructed dwellings meeting specified requirements and for a mortgagor who is not the occupant of the property.

Requires the seller, builder, or other person designated, to deliver to the mortgagor (prior to the completion of the sale) a written statement setting forth the amount of the appraised value of the property, as determined by the Secretary. Requires, where the mortgage involves a dwelling approved for insurance prior to construction, the seller to deliver a warranty that the dwelling is constructed in substantial conformity with the plans and specifications on which the Secretary based his valuation.

Authorizes the Secretary to insure a home mortgage covering property located in a neighborhood preservation area, and executed to refinance existing indebtedness.

Provides that, for the purpose of assisting lower income families in acquiring or maintaining homeownership, the Secretary is authorized to make periodic assistance payments on behalf of such homeowners through payments to mortgagees holding mortgages which meet the requirements of, and are insured under, this Act.

Authorizes appropriations for the purpose of carrying out the provisions of this title.

States that no assistance payments shall be made with respect to any mortgage securing a loan to finance the rehabilitation of any owner-occupied property, unless: (1) the property is located in a neighborhood which is sufficiently stable to support long-term values; (2) the property, without rehabilitation, does not conform to public standards for decent, safe, and sanitary housing; and (3) the improvements are reasonably required to provide decent, safe and sanitary housing.

Defines "lower income families" to mean those families whose incomes do not exceed 90 per cent of the median income for the area, as determined by the Secretary. Excludes from calculation of such income specified amounts, including income of students and the first $300 of secondary income by a spouse.

Title V: Project Mortgage Insurance - Authorizes the Secretary to insure a mortgage (including advances) which covers property involving a multifamily housing project to be executed by a mortgagor approved by the Secretary. Provides that the mortgage may involve the financing of new construction, the rehabilitation of an existing structure or structures, or the purchase or refinancing of an existing project. Describes the principal obligation percentages for each such type of mortgage.

Empowers the Secretary to prescribe such terms as necessary to assure that specified conditions are met, including: (1) refinancing the making of necessary repairs; (2) the mortgagor or family member owned the property for not less than three years prior to refinancing and (3) the property will be continuously maintained.

Authorizes the Secretary to make periodic assistance payments on behalf of the owner of a multifamily housing project. Authorized appropriations for such purposes. Authorizes the Secretary to insure a mortgage upon a multifamily housing project to be occupied primarily by those who are lower income tenants at the time of initial occupancy.

Provides that the Secretary is authorized to insure a mortgage which covers a new or rehabilitated project designed for use as a hospital, nursing home, intermediate care facility, group practice facility or medical practice facility. Sets forth the requirements for insuring such mortgages.

Authorizes the Secretary to insure a supplemental project loan with respect to a multifamily project or health facility to cover: (1) operating costs; (2) repairs and additions; and (3) purchases and resales of cooperative memberships. Sets forth the terms for such loans. Authorizes the Secretary to insure mortgages for land development.

Requires the Secretary to require that the mortgagor certify as to the actual cost of construction or rehabilitation. Requires that specified labor standards be met prior to the insurance of any loans or mortgages under this Act.

Title VI: Insurance Claims - Sets forth the procedures for home mortgage insurance claim settlement. Provides that the value of the mortgage shall be determined by specified calculations made on the original principal obligation. Allows the Secretary to permit forebearance of payments where the default on the home mortgage was beyond the control of the mortgagor. Permits the Secretary to consent to the assignment of the defaulted mortgage to avoid foreclosure.

Prescribes the procedures for (1) project mortgage insurance claim settlement; (2) modifications in terms of project mortgages; and (3) settlement of insurance claims with debentures.

Title VII: Miscellaneous - Empowers the Secretary with specified authorizations for dealing with and disposing of property, including: (1) acquiring of titles; (2) insuring of mortgages sold or executed in connection with the sale of property (by the Secretary); and (3) making of expenditures to correct defects in mortgaged homes and experimental property.

Authorizes the Secretary to refuse participation under this Act to any person or firm if he determines it has not met, or has violated, the enumerated requirements.

Chapter II: Public Housing Assistance Program - Declares it to be the policy of the United States to remedy the unsanitary housing conditions and the shortage of decent housing for low income families. Sets forth the definitions of terms used in this Act, including "low-income housing", and "low-income families".

Authorizes the Secretary to make loans to public housing agencies to finance the development of low-income housing projects. Empowers the Secretary to make annual contributions to public housing agencies to assist in maintaining the low-income character of their projects. Outlines the procedures and amounts of such contributions.

Permits the Secretary to include in any contract such covenants as he deems necessary to insure the low-income character of the project involved, including the condition requiring a playground. Sets forth additional provisions required in every contract for annual contributions.

Directs the Secretary to encourage public housing agencies to develop housing to meet the needs of displaced, elderly and handicapped families. Directs public housing agencies to provide, to the extent possible, low-income housing in private accommodations.

Provides for additional annual contributions by the Secretary to public housing agencies for the operation of low-income housing projects.

Allocates the funds authorized for annual contributions between communities of less than and more than fifty thousand in population.

Prescribes a rental adjustment formula if a contract for rental contributions requires increased charges to a family in low-income housing. Exempts specified projects from such rental formula.

Makes technical and conforming amendments to the National Bank Act and the Lanham Act.

Chapter III: Special Housing Needs - Grants the Secretary additional research authority in carrying out specified activities under this Act.