Neighborhood Conservation Act

Neighborhood Conservation Act - Declares it to be the purpose of this Act to encourage the preservation of older neighborhoods which are threatened with blight and housing abandonment and to stimulate the broadscale conservation and upgrading of existing low and moderate income housing by establishing a program of neighborhood conservation grants and a new program of mortgage insurance designed to generate private capital for housing repairs, maintenance, and rehabilitation.

Authorizes the Secretary of Housing and Urban Development to make grants to cities, municipalities, counties and other general purpose units of local government to assist them in carrying out such programs. States that such grants may cover a period of not to exceed five years and may provide one hundred percent of the cost of activities set forth in this Act.

Provides that to be eligible for grants under this Act a locality, acting through its chief executive authority, shall designate a specific area and prepare and submit to the Secretary a plan specifying: (1) the improvements in basic community facilities and services to be made in such area over the five year period in which such improvements shall be made; (2) the programs to be introduced to improve the quality of housing in the area; and (3) the public and private resources which will be used to carry out such improvements and programs.

Authorizes to be appropriated for grants under this Act not to exceed $100,000,000 for fiscal year 1974, not to exceed $150,000,000 for fiscal year 1975, and not to exceed $220,000,000 for fiscal year 1976.

Declares it to be the purpose of this part to help preserve and upgrade the quality of housing in designated neighborhood conservation areas by facilitating the rehabilitation financing of such housing or its transfer to tenant or neighborhood-based corporate ownership.

Authorizes the Secretary to insure any mortgage which covers residential property located in a neighborhood conservation area approved for assistance under this Act. Sets forth requirements with respect to the type of property a mortgage may cover and the individual or organization who shall execute such mortgage.

Provides that the Secretary shall not insure any mortgage under this Act unless he has received satisfactory and enforceable assurances from the mortgagor that the refinancing or sale of the property will not result, directly or indirectly, in any increase in the rentals or other charges for dwelling units in the property for a period of at least one year from the date of final endorsement of the mortgage insurance, or in any rent increases thereafter in excess of such increases as the Secretary finds justified and approves on the basis of increased operating expenses.

Authorizes the Secretary, for the purpose of maintaining or reducing rentals or other charges for properties insured under this Act, to make and to contract to make periodic interest reduction payments on behalf of the owners of the properties which shall be accomplished through payments to mortgagees holding mortgages under the requirements of this Act.

Provides that the Secretary shall cooperate with the Secretary of Labor and the Secretary of Health, Education, and Welfare to insure that funds appropriated under the Manpower Development and Training Act of 1962 shall be made available on a priority basis for training and employment support use in connection with improvements financed under this Act.

Provides that the Secretary shall develop and maintain full information and statistics regarding the utilization of and experiences incurred under this program. States that the Secretary shall submit each year to the Congress and to the President an annual report summarizing such information, his analysis of the effectiveness and scope of the program, and his recommendations for its improvement and greater utilization.