National Urban Bond Act

National Urban Bond Act - Expresses the finding of Congress that a long-term program for the financing of construction of housing is critically needed. Declares it to be the purpose of this Act to establish a program under which the Federal Government will issue and sell national urban bonds to the public, with the proceeds being used to finance housing construction by nonprofit and limited profit entities.

Establishes the National Urban Corporation within the Department of Housing and Urban Development. Directs the Secretary to select persons to head the Corporation.

Directs the Corporation to issue and to sell national urban bonds to the public. States that such bonds shall be issued in denominations of $500 and higher, shall have maximum maturity of twenty years, and shall be issued in such amount and at such interest rate as the Secretary shall determine. Exempts the bonds and their interest from income tax.

Directs the Corporation to carry out the construction or rehabilitation of housing for individuals or families of low or moderate income by making loans to nonprofit or limited profit organizations (as defined in this Act) from the Urban Housing Fund. Authorizes the Corporation to impose a low interest charge on such loans.

Establishes the Urban Housing Fund within the Treasury of the United States. Sets forth as the purpose of the Fund: (1) the making of loans; and (2) the payment of principal and interest on outstanding national urban bonds. States that the fund shall be credited with (1) the proceeds from the sale of bonds, and (2) the proceeds from the repayments of interest. Directs the Corporation to submit an annual budget for the Fund to Congress for review.

Enumerates the general powers of the Corporation. Exempts the Corporation from all taxation on any Corporation holdings except real property. Authorized the Secretary of the Treasury to prepare such forms as are necessary to supply the printed obligations necessary for the issuance of national urban bonds, and directs the Corporation to reimburse the Secretary for such services.

Authorizes and directs the Federal Reserve Banks to act as fiscal agents for the Corporation and to be reimbursed for such service. States that moneys of the Corporation not invested in mortgages or other security holdings or in operating facilities shall be kept in cash on hand or on deposit, or invested in obligations of the United States or guaranteed thereby, or in obligations, participations or other instruments which are lawful investments for fiduciary, trust, or public funds.

States that all national urban bonds shall be lawful investments, and may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority and control of the United States or any officer or officers thereof. Declares that all national urban bonds shall, to the same extent as securities which are direct obligations of or obligations guaranteed as to principal or interest by the United States, be deemed to be exempt securities within the meaning of laws administered by the Securities and Exchange Commission.

Authorizes to be appropriated: (1) $50,000,000 of which $25,000,000 shall be for a special guarantee account to provide initial captial for the Urban National Fund; and (2) such funds as may be necessary each fiscal year for administrative expenditures incurred with the national urban loan program. Directs the Corporation to submit to the President and Congress an annual report on its operations.