Housing and Community Development Act of 1983

Housing and Community Development Act of 1983 - Title I: Community and Neighborhood Development - Amends the Housing and Community Development Act of 1974 to authorize appropriations for FY 1984 through 1986 for the community development block grant program, the urban development action grant program, and the special discretionary fund of the Secretary of Housing and Urban Development. Earmarks a specified amount of the appropriations set aside for the discretionary fund for grants to Indian tribes.

Authorizes the Secretary to: (1) make rental rehabilitation grants to State and local governments for the rehabilitation of privately owned property for residential rental purposes; and (2) make available contract authority to assist the very low-income tenants who are displaced by such rehabilitation activities, to minimize such displacement, and to assist other very low-income tenants in obtaining decent housing.

Sets forth guidelines for the allocation of such grants and assistance (resources) among cities having a population of 50,000 or more, urban counties, and States. Requires the Secretary to conduct annual audits and reviews of the performance of resource recipients. Permits the Secretary to adjust the amount of resources provided to recipients in accordance with the findings of such audits and reviews. Prohibits any adjustments to recapture resources already expended.

Authorizes the Secretary to limit the rental rehabilitation grant amounts any entity may receive in any fiscal year.

Requires any assisted city, urban county or State administering a rental rehabilitation program to provide for the public and the Secretary an annual statement on proposed rehabilitation activities.

Lists requirements for rental rehabilitation programs assisted under this Act. Restricts the use of rehabilitation grants to structures that are to be used for rental residential purposes in low- and moderate-income areas. Limits the amount of rehabilitation assistance for a structure to 50 percent of the total rehabilitation costs of that structure. Prohibits assisted State and local governments from imposing rental requirements on assisted structures which differ from those applicable to structures rehabilitated without assistance. Requires a borrower under such a program to be personally liable for repayment of any financing upon default.

Provides for State administration of resources in areas outside a city or county receiving a direct allocation. Permits a State: (1) to use allocated resources to conduct its own rehabilitation program; (2) to distribute such resources to local governments; or (3) in FY 1983, to elect to have the Secretary administer such resources.

Authorizes the Secretary to establish relocation standards. Directs the Secretary to establish specified procedures governing rehabilitation involving historic structures.

Prohibits the Secretary from making rehabilitation grants unless the recipient provides satisfactory assurances that its program will be administered in conformity with specified civil rights requirements.

Authorizes appropriations for the urban homesteading program for FY 1984 and 1985.

Provides for the payment of consideration by a State or local government to the Secretary and by an individual or family to such government for real property transferred under an urban homesteading program. Requires such a government to remit to the Secretary 50 percent of any amount by which the consideration it receives for such property exceeds the consideration it paid for such property.

Authorizes the Secretary to undertake a program to demonstrate the feasibility of using homesteading techniques to facilitate the reuse of multifamily properties owned by the Secretary for home ownership purposes. Directs the Secretary to convey suitable properties to State and local governments for subsequent transfer to individuals under a cooperative or condominium form of ownership.

Requires that community development grants to States for nonentitlement areas (areas other than metropolitan cities or urban counties) be distributed by the States. (Current law provides for distribution by the Secretary in certain cases.) Revises grant certification requirements to delete requirements that: (1) the Governor of a State must be the State official who makes such certifications; and (2) a State must match ten percent of such grant amount for community development activities. Requires the reallocation among all States of grant funds that are allocated to a State for nonentitlement areas but not received by the State because it fails to meet grant prerequisites or because of an administrative action against the State. Requires that amounts of a State's allocation that become available as a result of grant closeouts or administrative actions against local governments be added to that State's allocation for the fiscal year in which such amounts become available or, if such State did not receive a grant in such year, to amounts to be allocated to all States in the succeeding fiscal year.

Includes among activities that are eligible for funding through community development block grants: (1) the acquisition, construction, reconstruction, or installation of all public facilities except buildings for the general conduct of government; and (2) the new construction of housing.

Revises the definition of an Indian tribe for purposes of provisions concerning eligibility for community development block grants and urban development action grants.

Requires recipients of community development block grants to include in proposed and final statements on community development objectives and the projected use of funds a description of the use of funds received in specified past periods and an assessment of the relationship of such use to the objectives proposed for such funds.

Provides that, under certain conditions, the amount of community development block grants for a government formed by the consolidation of metropolitan cities and urban counties shall be equal to the sum of amounts such cities and counties would have received if they had not consolidated.

Requires that grant funds originally allocated to metropolitan cities and urban counties which become available for reallocation be redistributed on a nationwide basis in the succeeding fiscal year. (Currently, such funds are redistributed among cities and counties within the same metropolitan area as the city or county to which the funds were originally allocated.) Requires the Secretary to distribute any excess metropolitan city and urban county grant amounts in a fiscal year on a pro rata basis.

Authorizes the Secretary to make grants to qualified groups and groups designated by governmental units to assist such units in carrying out the community development block grant and urban development action grant programs.

Repeals the exclusion of central cities of metropolitan statistical areas with populations of less than 50,000 as small cities with such populations for which 25 percent of urban development action grants are set aside.

Repeals provisions that: (1) allow local governments to receive an advance payment of the amount of their block grants to establish a revolving fund to be used for their rehabilitation activities; and (2) authorize the Secretary to guarantee obligation issued by local governments to finance the acquisition and rehabilitation of real property.

Amends the Housing Act of 1964 to repeal provisions authorizing the Secretary to make rehabilitation loans to property owners and tenants.

Amends the Housing and Urban Development Act of 1969 to repeal provisions authorizing the General Services Administration to transfer Federal surplus real property to the Secretary or the Secretary of Agriculture for sale or lease at fair value for use for low- and moderate-income housing. Permits the transfer of property requested before enactment of this Act.

Amends the Housing Act of 1949 to repeal provisions that prohibit an urban renewal plan from providing for the construction of transient housing unless the community involved has obtained a transient housing study indicating a need for such housing.

Amends the Housing and Urban Development Act of 1965 and the Housing Act of 1961 to repeal provisions requiring the Secretary's approval of the conversion of neighborhood facilities or open space land to uses not originally approved by the Secretary when awarding a grant for acquisition of such facilities or land.

Title II: Assisted Housing - Amends the United States Housing Act of 1937 to provide the Secretary additional contract authority for FY 1983 for contributions for the acquisition and development of public housing projects. Directs the Secretary to use a specified amount of such approved authority for contracts for improvement assistance to such projects. Authorizes appropriations for FY 1982 through 1984 for operating assistance for such projects. Repeals provisions providing for the approval of an application for housing assistance on the basis of consistency with a local housing plan.

Authorizes the Secretary to make grants to Indian tribes to: (1) assist in the development of newly constructed housing for tribe members; and (2) make rental units in such housing affordable to very low income members. Provides that assisted housing units may be: (1) owned by a tribe or an Indian housing authority and leased to the families; or (2) owned by the tribe or authority and the family as comortgagors. Sets forth grant application requirements, criteria for selecting grant participants, and maximum grant amounts. Authorizes appropriations for such grants for FY 1984 and 1985.

Amends the National Housing Act to authorize the Secretary to insure: (1) mortgages of such assisted Indian housing units; and (2) advances for construction of such units when no feasible financing alternative is available.

Amends the United States Housing Act of 1937 to require operating subsidies for public housing projects to be determined on the basis of a formula calculated to assure that the income of the public housing agency will be comparable to the sum of the existing housing fair market rents or the payment standards for the public housing agency's units, with specified adjustments by the Secretary. Requires the payment of a subsidy determined under current provisions of such Act plus a reasonable replacement allowance if such total amount is less than the subsidy as determined under this Act. Sets forth provisions governing the transition from the current method of calculating operating subsidies to the formula method. Authorizes the Secretary to: (1) fund certain public housing projects under a different formula; and (2) reimburse public housing agencies for costs of required audits. Repeals provisions that require the Secretary to allocate excess operating subsidy funds to public housing projects that incur unanticipated excessive costs due to circumstances beyond their control.

Prohibits the Secretary from entering any contracts to provide comprehensive improvement assistance to public housing projects after September 30, 1987, using authority approved in appropriation Acts for fiscal years after 1987.

Amends the Housing Act of 1937 to permit low-income housing assistance contracts providing assistance payments based on a payment standard used to determine the maximum monthly assistance payable for any family with respect to an existing unit selected by the family. Directs the Secretary, at least annually, to establish payment standards for various sizes and types of dwelling units in the market area at levels designed to assist the greatest possible number of families in securing decent, safe, and sanitary housing. Directs the Secretary to publish payment standards in the Federal Register.

Establishes the monthly assistance payment for a family as the amount by which the payment standard exceeds 30 percent of the family's monthly adjusted income, provided that such monthly assistance payment is not greater than the amount by which: (1) the monthly rent for the unit exceeds ten percent of the family's monthly income; or (2) the lower of such rent or the payment standard exceeds the part of any welfare payment designated for the family's housing costs. Restricts such assistance payments to very low-income families and families previously assisted under specified housing programs, with preference given to families which: (1) occupy substandard housing; (2) are involuntarily displaced; or (3) pay more than 50 percent of their income for rent. Permits the Secretary to disregard such preference and provide assistance to: (1) eligible families occupying units in formerly assisted projects acquired by the Secretary; (2) families in units to be rehabilitated; or (3) families residing in assisted Indian housing projects.

Terminates such assistance with respect to any vacant unit. Limits the duration of such assistance payments to five years. Requires the public housing agency to inspect the assisted unit at least annually to determine that it meets housing quality standards. Provides for the administration of such assistance contracts for Indian housing tenants by an Indian tribe or an Indian housing authority. Limits the duration of such contracts.

Provides for low-income housing assistance based on a payment standard for families renting manufactured homes or spaces.

Requires that tenants be given a preference for assistance under certain public housing and rent supplement programs if they are paying more than 50 percent of their income for rent.

Allows the Secretary to establish income ceilings higher or lower than 50 percent of the area median income when defining "very low-income families" for purposes of the housing assistance programs if such variations are necessary because of unusually high or low family incomes.

Amends the Omnibus Budget Reconciliation Act of 1981 to: (1) extend the applicability of provisions providing for delayed implementation of rent increases under such Act to tenants occupying assisted housing on or after the effective date of regulations implementing such Act; and (2) prohibit annual rent increases of more than 20 percent (currently ten percent) for tenants occupying assisted housing on or before such date as a result of provisions of such Act, the payment standards under this Act, or any other provisions of Federal law redefining which governmental benefits are to be considered as income. Authorizes the Secretary to delay implementation of specified procedures for determining a family's rent or contribution under certain housing programs if the Secretary determines that immediate implementation would be impracticable, would violate the terms of existing leases, or would cause extraordinary hardship for any class of tenants. Provides that the 20 percent limitation on rent increases shall not apply to a tenant whose rent payments are based on parts of welfare payments specifically designated for housing costs if the Secretary determines that the tenant will not bear the burden of such rent increases. Prohibits any reduction in a tenant's rent or contribution for assisted housing as a result of the implementation of procedures under this Act.

Makes a technical revision in the definition of a developmentally disabled individual for purposes of certain housing programs for the elderly or handicapped and public housing programs.

Permits the Secretary to petition any U.S. district court or the appropriate State court for the appointment of a receiver for a public housing agency which is in default on the covenants or conditions to which it is subject. Authorizes the court to grant temporary or preliminary relief pending final disposition of such petition. Terminates an appointed receiver upon the petition of the Secretary or when the court determines that all defaults have been cured and that the public housing agency will operate according to controlling covenants and conditions.

Permits the Secretary to approve the demolition of a public housing project or a portion thereof if the project is unusable and cannot be restored feasibly. Allows the Secretary to approve the disposition of such a project or portion if: (1) the property's retention is not in the best interest of the tenants or the public housing agency due to health and safety or economic factors; and (2) the net proceeds of the disposition will be used to retire outstanding indebtedness as prescribed by the annual contributions contract or the Secretary. Conditions the approval of such demolition or disposition or requirements that: (1) affected tenants be consulted; and (2) displaced tenants be given an opportunity by the public housing agency to relocate to other decent, safe, sanitary, and affordable housing. Permits the Secretary to approve any disposition of property determined to be excess to the needs of a project and any disposition which does not interfere with the continued operation of a project.

Amends the Housing Act of 1959 to eliminate the requirement that a nonprofit corporation, to be eligible for loans for the provision of housing for the elderly and handicapped, have on its governing body members selected to represent the views of the community where such housing would be located.

Amends the Housing and Community Development Amendments of 1978 to require that a rental or cooperative housing project be covered by a federally-insured mortgage to be eligible for operating assistance for troubled multifamily projects. Amends the National Housing Act to extend through September 30, 1985, the period during which amounts in the rental housing assistance fund may be approved for such operating assistance.

Amends the definition of a multifamily housing project to make certain requirements concerning tenant participation applicable to only those projects: (1) the mortgages of which are, or have been, federally insured; (2) which have been sold subject to a mortgage insured or held by the Secretary and subject to an agreement requiring the project's low- and moderate-income character to be maintained; or (3) the mortgages of which are, or have been, federally insured and the owner of which is the Secretary.

Amends the Social Security Act to require State unemployment agencies to disclose information to the Department of Housing and Urban Development (HUD) and public housing agencies concerning applicant wage information and unemployment benefits. Requires the State agencies to establish safeguards to assure that disclosed information is used only to determine an individual's eligibility for benefits or the amount of benefits under HUD programs.

Requires the entity responsible for determining eligibility for, or the level of, certain Federal housing benefits to deny such benefits to any applicant who knowingly submitted incorrect or misleading statements, concealed or withheld relevant information, or violated other benefit requirements.

Amends the Housing and Community Development Act of 1980 to extend the prohibition against providing housing assistance to non-resident aliens to assistance provided under a specified mortgage insurance program under the National Housing Act.

Title III: Program Amendments and Extensions - Amends the National Housing Act to extend through September 30, 1985 the Secretary's authority to insure housing loans and mortgages under specified insurance programs contained in such Act. Terminates the Secretary's authority to insure mortgages for: (1) servicemen, nursing homes, intermediate care facilities, and hospitals after May 20, 1983; and (2) mortgagors qualifying for home ownership assistance payments under such Act after September 30, 1983.

Authorizes the appropriation of such funds as may be necessary to cover losses sustained by the General Insurance Fund.

Amends the Housing and Urban Development Act of 1970 to authorize appropriations for research activities of the Department of Housing and Urban Development (HUD) for FY 1983 through 1985.

Provides for the liquidation of the new communities program authorized by the Housing and Urban Development Acts of 1968 and 1970. Cancels the duty of the Secretary to repay the principal and interest on obligations issued to the Treasury to finance such programs.

Cancels, each fiscal year, the duty of the Government National Mortgage Association to repay the principal and interest on obligations it issued to the Treasury to finance its special assistance functions and emergency home purchase assistance programs. Provides for the liquidation of assets acquired and the discharge of liabilities incurred under such programs. Repeals the provisions of the Federal National Mortgage Association Charter Act authorizing such programs.

Amends the National Housing Act to repeal the Secretary's authority to establish maximum interest rates on Federal Housing Administration (FHA) loans. Provides that housing mortgages or loans insured under programs that are extended beyond FY 1983, with specified exceptions, shall bear interest at such rate as may be agreed upon by the borrower and the lender. (Currently, the Secretary sets or approves such interest rates within prescribed limits.) Continues the authority of the Secretary to set the maximum interest rate for insured mortgages of mortgagors receiving home ownership assistance payments.

Authorizes the Secretary to agree to an extension of the term of an insured mortgage on property or land to be improved or developed, upon determining that unusual circumstances make such extension necessary to avoid undue hardship to the mortgagor.

Repeals a provision of the Multifamily Mortgage Foreclosure Act of 1981 that requires the purchaser of a project foreclosed under such Act, if a majority of the project units are occupied at the time of sale, to continue to operate the project according to the terms of the Federal insurance or rehabilitation loan program under which the project received assistance. Amends such Act to authorize lenders participating in the multifamily coinsurance program to use the Act's foreclosure procedures for mortgages in default.

Repeals a provision of the Housing and Community Development Act of 1977 that requires the Secretary to publish prototype housing costs for each housing market area of the United States.

Amends the National Housing Act to increase the maximum amounts of loans for purchasing manufactured homes and lots that may be insured under the FHA program. Allows the Secretary to increase such maximum amounts for an area by not to exceed the percentage by which the maximum insurable amount for a one-family home in that area is increased. (Currently, such increase is limited to $7500.) Allows a qualified owner-occupant of a manufactured home and lot purchased without FHA insurance to refinance such home through an FHA-insured loan, provided the home was constructed in accordance with standards established under the National Manufactured Housing Construction and Safety Standards Act of 1974.

Increases the maximum loan-to-value ratio of a single-family home for FHA insurance purposes.

Increases the amount of the principal obligation of a mortgage executed by a non-occupant mortgagor which is eligible for FHA insurance.

Authorizes the Secretary to set varying FHA insurance premiums of up to three (currently one) percent per year of the outstanding principal mortgage obligation for different housing programs.

Authorizes the Secretary to insure, on a coinsurance basis, a specified number of mortgage loans for the purchase and construction of shell homes for occupancy by the buyers. Directs the Secretary to encourage buyers to contribute the value of their labor as equity in the property.

Authorizes the Secretary to provide mortgage insurance benefits to a mortgagee without requiring conveyance of the title to the insured property if: (1) the property is sold at foreclosure for at least its fair market value and the proceeds of the sale are deducted from the value of the mortgage; and (2) all claims of the mortgagee relating to the mortgage are assigned to the Secretary.

Makes it discretionary (rather than mandatory) for the Secretary to regulate the rents and rate of return on HUD-insured housing projects and to provide such insurance primarily to projects providing for families with children.

Permits the Secretary to insure mortgages of manufactured home parks designed exclusively for the elderly.

Eliminates special limitations on the amount of a mortgage involving refinancing for rehabilitation purposes which qualifies for FHA insurance.

Authorizes the Secretary to direct mortgagees exercising their option to assign certain insured mortgages to the Secretary, to deliver the mortgages and original credit installments directly to the Government National Mortgage Association in lieu of the Secretary. Authorizes the Association to hold and service such loans as agent for the Secretary. Eliminates the option of mortgagees to assign such insured mortgages to the Secretary with respect to a commitment to insure entered into on or after the effective date of this Act.

Eliminates the requirement that a condominium meet one of the following conditions to qualify for FHA insurance: (1) the project containing the condominium is or has been federally-insured; (2) there are less than 12 units in the project; or (3) if the project has 12 or more units, it is more than one year old. Deletes the additional requirement that the mortgagor acquire the condominium for his or her own use and occupancy and not own more than four units covered by insured mortgages.

Extends the Secretary's authority to insure graduated payment mortgages. Eliminates the requirements that a mortgagor must be unable to afford a dwelling under any other mortgage insurance program and must not have owned a dwelling within the previous three years in order to qualify for graduated payment mortgage insurance. Deletes restrictions on the number of graduated payment mortgages which may be insured during a year. Provides authority for the Secretary to insure graduated payment mortgages for housing projects consisting of five or more dwelling units.

Authorizes the Secretary to insure a limited number of adjustable rate mortgages for dwellings designed for occupancy by one to four families (single-family homes). Permits annual interest rate adjustments of not to exceed one percent through adjustments in the monthly payment, the outstanding principal balance, the mortgage term, or a combination of these factors. Prohibits: (1) extending the mortgage term beyond 40 years; or (2) increasing the interest rate by more than five percentage points over the mortgage term. Directs the Secretary to require the mortgagee to provide information to the mortgagor describing the features and maximum possible payment schedule for an adjustable rate mortgage.

Authorizes the Secretary to insure a specified number of shared appreciation mortgages for single-family homes, cooperative housing stock, and multifamily housing projects. Provides that the mortgagee's share of a property's or stock's net appreciated value shall be paid upon the sale or transfer of the property or stock or payment in full of the mortgage, whichever comes first. Excludes a mortgagee's share of the net appreciated value from the mortgagee's insurance benefits in the event of a default. Directs the Secretary to prescribe consumer protection and disclosure requirements applicable to mortgagees making shared appreciation mortgages. Exempts such mortgages from State authority. Requires a shared appreciation mortgage on a multifamily housing project to have a mortgage term of at least 15 years and to be repayable in monthly installments needed to retire the debt over 30 years.

Directs the Secretary to establish the maximum percentage of net appreciated value of a multifamily housing project that is payable as the mortgagee's share.

Authorizes the Secretary to insure certain housing loans which do not completely amortize over the loan term.

Authorizes the Secretary to insure a specified number of home equity conversion mortgages for elderly homeowners on a demonstration basis. Declares that such a mortgage shall: (1) be secured by a first lien on property designed as a one-family residence; (2) provide for periodic or lump sum payments to the homeowner based upon accumulated equity; (3) have a fixed or variable term or provide for the lender and the homeowner to share the appreciation in the value of the property; (4) become due on a specified date after disbursement of the full principal amount or when a specific event occurs such as the sale of the property or the death of the homeowner; (5) allow prepayment without penalty; and (6) provide for a fixed or adjustable interest rate. Lists other conditions for insurance eligibility. Establishes the eligibility of mortgagees for insurance benefits for such mortgages.

Directs the Secretary to require mortgagees to provide a written explanation of the features of a home equity conversion mortgage to any applicant. Preempts State regulation of certain aspects of such a mortgage. Authorizes the Secretary to take any actions necessary to: (1) provide a mortgagor with funds to which the mortgagor is entitled but which the mortgagor has not received under an insured mortgage because the party responsible for payment has defaulted; and (2) obtain repayment of such funds.

Authorizes the Secretary to make expenditures to correct or provide compensation for structural defects in an FHA-insured single-family home for which a Veterans Administration loan guaranty was approved prior to construction.

Requires payment to the Government of mortgage insurance premiums promptly: (1) upon their receipt from the borrower with respect to mortgages on single-family homes; and (2) when due to the Secretary with respect to mortgages on multifamily housing projects.

Authorizes the Secretary to insure the mortgages of single-family homes on Indian reservations or Hawaiian home lands, without regard to certain restrictions of the National Housing Act, if such a mortgage is executed: (1) by an Indian tribe or a member of an Indian tribe and the Indian tribe as comortgagors; (2) by a native Hawaiian if the Department of Hawaiian Home Lands of the State of Hawaii is a comortgagor or guarantees to reimburse the Secretary for any insurance paid; or (3) in connection with a property assisted under the Indian housing program under this Act. Authorizes the Secretary to require Indian tribes to pledge income from tribal resources or assets or pledge Federal grants to reimburse the Secretary for insurance claims paid on such homes.

Amends the Housing and Urban Development Act of 1968 and the National Housing Act to repeal the Secretary's authority and obligation to provide housing counseling assistance to certain tenants and homeowners.

Amends the National Housing Act to provide that the interest on obligations issued by State or local governments to finance mortgages on a coinsurance basis shall not be tax exempt.