A bill to extend and amend section 312 of the Housing Act of 1964.

Extends the authority of the Secretary of Housing and Urban Development to make 3 percent interest rate loans to property owners to rehabilitate their property in urban renewal areas through September 30, 1978.

Permits the Secretary to require borrowing property owners to pay a greater interest rate when the income of such borrower exceeds the median income for a family of four persons.

Directs the Secretary to administer the loan program in a manner designed to: (1) encourage communities to undertake programs which facilitate public or private financing of rehabilitation with funds not made available under any Federal housing program; (2) encourage communities to address the rehabilitation needs of owner-occupants living in areas participating in rehabilitation programs whose incomes are too low to afford such Federal loans; and (3) accommodate the needs of communities which have no other feasible source of loan funds for rehabilitation.

Transfers the funding for such program from the appropriations process to the Treasury borrowing process. Authorizes appropriations of up to $7,500,000 for any fiscal year for such program.