
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC1479]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
       CHAPTER 8A--SLUM CLEARANCE, URBAN RENEWAL, AND FARM HOUSING
 
                      SUBCHAPTER III--FARM HOUSING
 
Sec. 1479. General powers of Secretary


(a) Standards of adequate farm housing and other buildings; criteria

    The Secretary, for the purposes of this subchapter, shall have the 
power to determine and prescribe the standards of adequate farm housing 
and other buildings, by farms or localities, taking into consideration, 
among other factors, the type of housing which will provide decent, 
safe, and sanitary dwelling for the needs of the family using the 
housing, the type and character of the farming operations to be 
conducted, and the size and earning capacity of the land. The Secretary 
shall approve a residential building as meeting such standards if the 
building is constructed in accordance with (1) the minimum standards 
prescribed by the Secretary, (2) the minimum property standards 
prescribed by the Secretary of Housing and Urban Development for 
mortgages insured under title II of the National Housing Act [12 U.S.C. 
1707 et seq.], (3) the standards contained in any of the voluntary 
national model building codes, or (4) in the case of manufactured 
housing, the standards referred to in section 1472(e) of this title. To 
the maximum extent feasible, the Secretary shall promote the use of 
energy saving techniques through standards established by such Secretary 
for newly constructed residential housing assisted under this 
subchapter. Such standards shall, insofar as is practicable, be 
consistent with the standards established pursuant to section 526 of the 
National Housing Act [12 U.S.C. 1735f-4] and shall incorporate the 
energy performance requirements developed pursuant to such section.

(b) Terms or conditions of leases or occupancy agreements subject to 
        change with approval of Secretary

    The Secretary may require any recipient of a loan or grant to agree 
that the availability of improvements constructed or repaired with the 
proceeds of the loan or grant under this subchapter shall not be a 
justification for directly or indirectly changing the terms or 
conditions of the lease or occupancy agreement with the occupants of 
such farms to the latter's disadvantage without the approval of the 
Secretary.

(c) Rural Housing Insurance Fund for payment of expenditures respecting 
        construction defects; judicial review prohibition

    The Secretary is authorized, after October 1, 1977, with respect to 
any unit or dwelling newly constructed during the period beginning 
eighteen months prior to October 12, 1977, and purchased with financial 
assistance authorized by this subchapter which he finds to have 
structural defects to make expenditures for (1) correcting such defects, 
(2) paying the claims of the owner of the property arising from such 
defects, or (3) acquiring title to the property, if such assistance is 
requested by the owner of the property within thirty-six months after 
financial assistance under this subchapter is rendered to the owner of 
the property or, in the case of property with respect to which 
assistance was made available within eighteen months prior to October 
12, 1977, within thirty-six months after October 12, 1977. Expenditures 
pursuant to this subsection may be paid from the Rural Housing Insurance 
Fund. Decisions by the Secretary regarding such expenditures or payments 
under this subsection, and the terms and conditions under which the same 
are approved or disapproved, shall not be subject to judicial review.

(d) Defaults involving security interest in tribal lands

    In the event of default involving a security interest in tribal 
allotted or trust land, the Secretary shall only pursue liquidation 
after offering to transfer the account to an eligible tribal member, the 
tribe, or the Indian housing authority serving the tribe or tribes. If 
the Secretary subsequently proceeds to liquidate the account, the 
Secretary shall not sell, transfer, or otherwise dispose of or alienate 
the property except to one of the entities described in the preceding 
sentence.

(e) Terms and conditions; regulations

    The Secretary shall, by regulation, prescribe the terms and 
conditions under which expenditures and payments may be made under the 
provisions of this section.

(f) Housing in underserved areas

                 (1) Designation of underserved area

        The Secretary shall designate as targeted underserved areas 100 
    counties and communities in each fiscal year that have severe, unmet 
    housing needs as determined by the Secretary. A county or community 
    shall be eligible for designation if, during the 5-year period 
    preceding the year in which the designation is made, it has received 
    an average annual amount of assistance under this subchapter that is 
    substantially lower than the average annual amount of such 
    assistance received during that 5-year period by other counties and 
    communities in the State that are eligible for such assistance 
    calculated on a per capita basis, and has--
            (A) 20 percent or more of its population at or below the 
        poverty level; and
            (B) 10 percent or more of its population residing in 
        substandard housing.

    As used in this paragraph, the term ``poverty level'' has the 
    meaning given the term in section 5302(a)(9) of this title.

                           (2) Preferences

        In selecting projects to receive assistance with amounts set 
    aside under paragraph (4), the Secretary shall give preference to 
    any project located in a county or community that has, at the time 
    of designation and as determined by the Secretary--
            (A) 28 percent or more of its population at or below poverty 
        level; and
            (B) 13 percent or more of its population residing in 
        substandard housing.

    In designating underserved areas under paragraph (1), in each fiscal 
    year the Secretary shall designate not less than 5 counties or 
    communities that contain tribal allotted or Indian trust land.

                   (3) Outreach program and review

        (A) Outreach

            The Secretary shall publicize the availability to targeted 
        underserved areas of grants and loans under this subchapter and 
        promote, to the maximum extent feasible, efforts to apply for 
        those grants and loans for housing in targeted underserved 
        areas.

        (B) Review

            Upon the receipt of data from the 1990 decennial census, the 
        Secretary shall conduct a review of any designations made under 
        paragraph (1) and preferences given under paragraph (2) and the 
        eligibility of communities and counties for such designation and 
        preference, examining the effects of such data on such 
        eligibility. The Secretary shall submit to the Congress, not 
        later than 9 months after the availability of the data, a report 
        regarding the review, which shall include any recommendations of 
        the Secretary for modifications in the standards for designation 
        and preference.

      (4) Set-aside for targeted underserved areas and colonias

        (A) In general

            The Secretary shall set aside and reserve for assistance in 
        targeted underserved areas an amount equal to 5.0 percent in 
        each fiscal year of the aggregate amount of lending authority 
        under sections 1472, 1474, 1484, 1485, and 1490d of this title. 
        During each fiscal year, the Secretary shall set aside from 
        amounts available for assistance under paragraphs (2) and (5) of 
        section 1490a(a) of this title, an amount that is appropriate to 
        provide assistance with respect to the lending authority under 
        sections 1484 and 1485 of this title that is set aside for such 
        fiscal year. The Secretary shall establish a procedure to 
        reallocate any assistance set aside in any fiscal year for 
        targeted underserved areas that has not been expended during a 
        reasonable period in such year for use in (i) colonias that have 
        applied for and are eligible for assistance under subparagraph 
        (B) or paragraph (7) and did not receive assistance, and (ii) 
        counties and communities eligible for designation as targeted 
        underserved areas but which were not so designated. The 
        procedure shall also provide that any assistance reallocated 
        under the preceding sentence that has not been expended by a 
        reasonable date established by the Secretary (which shall be 
        after the expiration of the period referred to in the preceding 
        sentence) shall be made available and allocated under the laws 
        and regulations relating to such assistance, notwithstanding 
        this subsection.

        (B) Priority for colonias

            (i) Notwithstanding the designation of counties and 
        communities as targeted underserved areas under paragraph (1) 
        and the provisions of section 1490 of this title, colonias shall 
        be eligible for assistance with amounts reserved under 
        subparagraph (A), as provided in this subparagraph.
            (ii) In providing assistance from amounts reserved under 
        this paragraph in each fiscal year, the Secretary shall give 
        priority to any application for assistance to be used in, or in 
        close proximity to, and serving the residents of, a colonia 
        located in a State described under clause (iii). After the 
        Secretary has provided assistance under the priority for 
        colonias located in a State in an amount equal to 5 percent of 
        the total amount of assistance allocated under this subchapter 
        to such State in the fiscal year, the priority shall not apply 
        to any applications for colonias in such State.
            (iii) This paragraph shall apply to any State for any fiscal 
        year following 2 fiscal years in which the State obligated the 
        total amount of assistance allocated to it under this subchapter 
        during each of such 2 fiscal years.

                    (5) List of underserved areas

        The Secretary shall publish annually the current list of 
    targeted underserved areas in the Federal Register.

                 (6) Project preparation assistance

        (A) In general

            The Secretary may make grants to eligible applicants under 
        subparagraph (D) to promote the development of affordable 
        housing in targeted underserved areas and colonias.

        (B) Use

            A grant under this paragraph shall not exceed an amount that 
        the Secretary determines to equal the customary and reasonable 
        costs incurred in preparing an application for a loan under 
        section 1472, 1474, 1484, 1485, or 1490d of this title, or a 
        grant under section 1490m of this title (including 
        preapplication planning, site analysis, market analysis, and 
        other necessary technical assistance). The Secretary shall 
        adjust the loan or grant amount under such sections to take 
        account of project preparation costs that have been paid from 
        grant proceeds under this paragraph and that normally would be 
        reimbursed with proceeds of the loan or grant.

        (C) Approval

            The Secretary shall approve a properly submitted application 
        or issue a written statement indicating the reasons for 
        disapproval not later than 60 days after the receipt of the 
        application.

        (D) Eligibility

            For purposes of this paragraph, an eligible applicant may be 
        a nonprofit organization or corporation, a community housing 
        development organization, State, unit of general local 
        government, or agency of a State or unit of general local 
        government.

        (E) Availability of funding

            Any amounts appropriated to carry out this paragraph shall 
        remain available until expended.

                      (7) Priority for colonias

        (A) In general

            In providing assistance under this subchapter in any fiscal 
        year described under subparagraph (B), each State in which 
        colonias are located shall give priority to any application for 
        assistance to be used in a colonia. The priority under this 
        subparagraph shall not apply in such State after 5 percent of 
        the assistance available in such fiscal year has been allocated 
        for colonias qualifying for the priority.

        (B) Covered years

            This paragraph shall apply to any fiscal year following 2 
        fiscal years in which the State did not obligate the total 
        amount of assistance allocated it under this subchapter during 
        each of such 2 fiscal years.

                       (8) ``Colonia'' defined

        For purposes of this subsection, the term ``colonia'' means any 
    identifiable community that--
            (A) is in the State of Arizona, California, New Mexico, or 
        Texas;
            (B) is in the area of the United States within 150 miles of 
        the border between the United States and Mexico, except that the 
        term does not include any standard metropolitan statistical area 
        that has a population exceeding 1,000,000;
            (C) is determined to be a colonia on the basis of objective 
        criteria, including lack of potable water supply, lack of 
        adequate sewage systems, and lack of decent, safe, and sanitary 
        housing; and
            (D) was in existence as a colonia before November 28, 1990.

(July 15, 1949, ch. 338, title V, Sec. 509, 63 Stat. 436; Pub. L. 95-
128, title V, Sec. 504, Oct. 12, 1977, 91 Stat. 1139; Pub. L. 96-153, 
title V, Sec. 508, Dec. 21, 1979, 93 Stat. 1136; Pub. L. 98-181, title 
V, Sec. 506(a), Nov. 30, 1983, 97 Stat. 1242; Pub. L. 101-625, title 
VII, Secs. 708, 709(b), Nov. 28, 1990, 104 Stat. 4287, 4288; Pub. L. 
102-550, title VII, Sec. 705, Oct. 28, 1992, 106 Stat. 3835; Pub. L. 
104-120, Sec. 4(a), Mar. 28, 1996, 110 Stat. 835; Pub. L. 104-180, title 
VII, Sec. 734(b), Aug. 6, 1996, 110 Stat. 1602; Pub. L. 105-86, title 
VII, Sec. 735(a), Nov. 18, 1997, 111 Stat. 2110; Pub. L. 105-276, title 
V, Sec. 599C(a), (e)(2)(B), Oct. 21, 1998, 112 Stat. 2661, 2662.)

                       References in Text

    The National Housing Act, referred to in subsec. (a), is act June 
27, 1934, ch. 847, 48 Stat. 1246, as amended. Title II of the National 
Housing Act is classified principally to subchapter II (Sec. 1707 et 
seq.) of chapter 13 of Title 12, Banks and Banking. For complete 
classification of this Act to the Code, see section 1701 of Title 12 and 
Tables.


                               Amendments

    1998--Subsec. (f)(4)(A). Pub. L. 105-276, in first sentence, 
substituted ``each fiscal year'' for ``fiscal year 1998'' and, in second 
sentence, substituted ``During each fiscal year'' for ``During such 
fiscal year'' and substituted ``from amounts available for assistance 
under paragraphs (2) and (5) of section 1490a(a) of this title, an 
amount'' for ``an amount of section 521 rental assistance''.
    1997--Subsec. (f)(4)(A). Pub. L. 105-86 substituted ``fiscal year 
1998'' for ``fiscal year 1997''.
    1996--Subsec. (f)(4)(A). Pub. L. 104-180 substituted ``fiscal year 
1997'' for ``fiscal year 1996''.
    Pub. L. 104-120 substituted ``fiscal year 1996'' for ``fiscal years 
1993 and 1994'' and ``During such fiscal year'' for ``During each such 
fiscal year''.
    1992--Subsec. (f)(1). Pub. L. 102-550, Sec. 705(a)(1), substituted 
``in each fiscal year'' for ``in each of fiscal years 1991 and 1992'' in 
introductory provisions.
    Subsec. (f)(2). Pub. L. 102-550, Sec. 705(a)(2), inserted concluding 
provisions.
    Subsec. (f)(4)(A). Pub. L. 102-550, Sec. 705(a)(3), substituted ``an 
amount equal to 5.0 percent in fiscal years 1993 and 1994'' for ``an 
amount equal to 3.5 percent in fiscal year 1991 and 5.0 percent in 
fiscal year 1992''.
    Subsec. (f)(4)(B)(ii). Pub. L. 102-550, Sec. 705(c), inserted ``, or 
in close proximity to, and serving the residents of,'' before ``a 
colonia''.
    Subsec. (f)(8)(C) to (E). Pub. L. 102-550, Sec. 705(b), redesignated 
subpar. (D) as (C), struck out former subpar. (C) which read as follows: 
``is designated by the State or county in which it is located as a 
colonia;'', added subpar. (D), and struck out subpar. (E) which read as 
follows: ``was in existence and generally recognized as a colonia before 
November 28, 1990.''
    1990--Subsecs. (d), (e). Pub. L. 101-625, Sec. 708, added subsec. 
(d) and redesignated former subsec. (d) as (e).
    Subsec. (f). Pub. L. 101-625, Sec. 709(b), added subsec. (f).
    1983--Subsec. (a). Pub. L. 98-181 inserted provisions relating to 
standards, designated cls. (1) to (4), the compliance with which will 
result in approval by the Secretary, and inserted provision relating to 
the promotion of the use of energy saving techniques.
    1979--Subsec. (c). Pub. L. 96-153 substituted ``within thirty-six 
months after October 12, 1977'' for ``within eighteen months after 
October 12, 1977''.
    1977--Subsecs. (c), (d). Pub. L. 95-128 added subsecs. (c) and (d).


                    Effective Date of 1996 Amendment

    Amendment by Pub. L. 104-120 to be construed to have become 
effective Oct. 1, 1995, see section 13(a) of Pub. L. 104-120, set out as 
an Effective and Termination Dates of 1996 Amendments note under section 
1437d of this title.


                               Regulations

    Section 709(c) of Pub. L. 101-625 provided that: ``Not later than 
the expiration of the 120-day period beginning on the date of enactment 
of the Cranston-Gonzalez National Affordable Housing Act [Nov. 28, 
1990], the Secretary of Agriculture shall issue any regulations 
necessary to carry out the amendment made by this section [amending this 
section].''


                      Housing in Underserved Areas

    Section 709(a) of Pub. L. 101-625 provided that: ``The purpose of 
this section [amending this section and enacting provisions set out 
above] is to improve the quality of affordable housing in communities 
that have extremely high concentrations of poverty and substandard 
housing and that have been underserved by rural housing programs, 
including extremely distressed areas in the Lower Mississippi Delta and 
other regions of the Nation, by directing Farmers Home Administration 
assistance toward designated underserved areas.''


Exemptions of Existing Dwellings From Living Area Limitations; Authority 
           of District Offices of Farmers' Home Administration

    Pub. L. 100-202, Sec. 101(k) [title VI, Sec. 632], Dec. 22, 1987, 
101 Stat. 1329-322, 1329-356, provided that: ``During fiscal year 1988 
and each succeeding fiscal year, the Secretary of Agriculture shall 
permit each district office of the Farmers Home Administration to exempt 
any existing dwelling from any limitation established by the Secretary 
on the number of square feet of living area that may be contained in a 
dwelling to be eligible for a loan under section 502 of the Housing Act 
of 1949 [section 1472 of this title], if the dwelling is modest in 
design, size, and cost for the area in which it is located.''

                  Section Referred to in Other Sections

    This section is referred to in sections 1480, 1483, 1490m of this 
title.
