
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-569 Section 703]
[Document affected by Public Law 106-569 Section 708(b)]
[CITE: 42USC1484]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
       CHAPTER 8A--SLUM CLEARANCE, URBAN RENEWAL, AND FARM HOUSING
 
                      SUBCHAPTER III--FARM HOUSING
 
Sec. 1484. Insurance of loans for housing and related facilities 
        for domestic farm labor
        

(a) Authorization; terms and conditions

    The Secretary is authorized to insure and make commitments to insure 
loans made by lenders other than the United States to the owner of any 
farm or any association of farmers for the purpose of providing housing 
and related facilities for domestic farm labor, or to any Indian tribe 
for such purpose, or to any State (or political subdivision thereof), or 
any broad-based public or private nonprofit organization, or any 
nonprofit limited partnership in which the general partner is a 
nonprofit entity, or any nonprofit organization of farmworkers 
incorporated within the State for the purpose of providing housing and 
related facilities for domestic farm labor any place within the State 
where a need exists. All such loans shall be made in accordance with 
terms and conditions substantially identical with those specified in 
section 1472 of this title, except that--
        (1) no such loan shall be insured in an amount in excess of the 
    value of the farm involved less any prior liens in the case of a 
    loan to an individual owner of a farm, or the total estimated value 
    of the structures and facilities with respect to which the loan is 
    made in the case of any other loan;
        (2) no such loan shall be insured if it bears interest at a rate 
    in excess of 1 per centum per annum;
        (3) out of interest payments by the borrower the Secretary shall 
    retain a charge in an amount not less than one-half of 1 per centum 
    per annum of the unpaid principal balance of the loan;
        (4) the insurance contracts and agreements with respect to any 
    loan may contain provisions for servicing the loan by the Secretary 
    or by the lender, and for the purchase by the Secretary of the loan 
    if it is not in default, on such terms and conditions as the 
    Secretary may prescribe; and
        (5) the Secretary may take mortgages creating a lien running to 
    the United States for the benefit of the insurance fund referred to 
    in subsection (b) of this section notwithstanding the fact that the 
    note may be held by the lender or his assignee.

(b) Utilization of farm tenant mortgage insurance fund; additions to and 
        deposits in fund; deposits in Treasury

    The Secretary shall utilize the insurance fund created by section 
1005a of title 7 \1\ and the provisions of section 1005c(a), (b), and 
(c) of title 7 \1\ to discharge obligations under insurance contracts 
made pursuant to this section, and
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    \1\ See References in Text note below.
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        (1) the Secretary may utilize the insurance fund to pay taxes, 
    insurance, prior liens, and other expenses to protect the security 
    for loans which have been insured hereunder and to acquire such 
    security property at foreclosure sale or otherwise;
        (2) the notes and security therefor acquired by the Secretary 
    under insurance contracts made pursuant to this section shall become 
    a part of the insurance fund. Loans insured under this section may 
    be held in the fund and collected in accordance with their terms or 
    may be sold and reinsured. All proceeds from such collections, 
    including the liquidation of security and the proceeds of sales, 
    shall become a part of the insurance fund; and
        (3) of the charges retained by the Secretary out of interest 
    payments by the borrower, amounts not less than one-half of 1 per 
    centum per annum of the unpaid principal balance of the loan shall 
    be deposited in and become a part of the insurance fund. The 
    remainder of such charges shall be deposited in the Treasury of the 
    United States and shall be available for administrative expenses of 
    the Farmers Home Administration, to be transferred annually to and 
    become merged with any appropriation for such expenses.

(c) Insurance contract; obligation of United States; incontestability

    Any contract of insurance executed by the Secretary under this 
section shall be an obligation of the United States and incontestable 
except for fraud or misrepresentation of which the holder of the 
contract has actual knowledge.

(d) Repealed. Pub. L. 96-153, title V, Sec. 501(b), Dec. 21, 1979, 93 
        Stat. 1133

(e) Administrative expenses

    Amounts made available pursuant to section 1483 of this title shall 
be available for administrative expenses incurred under this section.

(f) Definitions

    As used in this section--
        (1) the term ``housing'' means (A) new structures (including 
    household furnishings) suitable for dwelling use by domestic farm 
    labor, and (B) existing structures (including household furnishings) 
    which can be made suitable for dwelling use by domestic farm labor 
    by rehabilitation, alteration, conversion, or improvement;
        (2) the term ``related facilities'' means (A) new structures 
    (including household furnishings) suitable for use as dining halls, 
    community rooms or buildings, or infirmaries, or for other essential 
    services facilities, and (B) existing structures (including 
    household furnishings) which can be made suitable for the above uses 
    by rehabilitation, alteration, conversion, or improvement and (C) 
    land necessary for an adequate site; and
        (3) the term ``domestic farm labor'' means any person (and the 
    family of such person) who receives a substantial portion of his or 
    her income from primary production of agricultural or aquacultural 
    commodities or the handling of such commodities in the unprocessed 
    stage, without respect to the source of employment, except that--
            (A) such person shall be a citizen of the United States or a 
        person legally admitted for permanent residence;
            (B) such term includes any person (and the family of such 
        person) who is retired or disabled, but who was domestic farm 
        labor at the time of retirement or becoming disabled; and
            (C) in applying this paragraph with respect to vacant units 
        in farm labor housing, the Secretary shall make units available 
        for occupancy in the following order of priority:
                (i) to active farm laborers (and their families);
                (ii) to retired or disabled farm laborers (and their 
            families) who were active in the local farm labor market at 
            the time of retiring or becoming disabled; and
                (iii) to other retired or disabled farm laborers (and 
            their families).

(g) Waiver of interest rate limitations

    The Secretary may waive the interest rate limitation contained in 
subsection (a)(2) of this section and the requirement of section 
1471(c)(3) of this title in any case in which the Secretary determines 
that qualified public or private nonprofit sponsors are not currently 
available and are not likely to become available within a reasonable 
period of time and such waiver is necessary to permit farmers to provide 
housing and related facilities for migrant domestic farm laborers, 
except that the benefits resulting from such waiver shall accrue to the 
tenants, and the interest rate on a loan insured under this section and 
for which the Secretary permits such waiver shall be no less than one-
eighth of 1 per centum above the average interest rate on notes or other 
obligations which are issued under section 1481 of this title and have 
maturities comparable to such a loan.

(h) Determination of need for assistance

    In making available assistance in any area under this section or 
section 1486 of this title, the Secretary shall--
        (1) in determining the need for the assistance, take into 
    consideration the housing needs only of domestic farm labor, 
    including migrant farmworkers, in the area; and
        (2) in determining whether to provide such assistance, make such 
    determination without regard to the extent or nature of other 
    housing needs in the area.

(i) Domestic farm labor housing available for other families

    Housing and related facilities constructed with loans under this 
section may be used for tenants eligible for occupancy under section 
1485 of this title if the Secretary determines that--
        (1) there is no longer a need in the area for farm labor 
    housing; or
        (2) the need for such housing in the area has diminished to the 
    extent that the purpose of the loan, providing housing for domestic 
    farm labor, can no longer be met.

(j) Equity skimming penalty

    Whoever, as an owner, agent, or manger,\2\ or who is otherwise in 
custody, control, or possession of property that is security for a loan 
made or insured under this section willfully uses, or authorizes the 
use, of any part of the rents, assets, proceeds, income, or other funds 
derived from such property, for any purpose other than to meet actual or 
necessary expenses of the property, or for any other purpose not 
authorized by this subchapter or the regulations adopted pursuant to 
this subchapter, shall be fined not more than $250,000 or imprisoned not 
more than 5 years, or both.
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    \2\ So in original. Probably should be ``manager,''.
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(July 15, 1949, ch. 338, title V, Sec. 514, as added Pub. L. 87-70, 
title VIII, Sec. 804(a), June 30, 1961, 75 Stat. 186; amended Pub. L. 
88-560, title V, Sec. 502, Sept. 2, 1964, 78 Stat. 796; Pub. L. 90-448, 
title X, Sec. 1004, Aug. 1, 1968, 82 Stat. 553; Pub. L. 91-609, title 
VIII, Sec. 801(a)-(c), Dec. 31, 1970, 84 Stat. 1805, 1806; Pub. L. 95-
128, title V, Sec. 505, Oct. 12, 1977, 91 Stat. 1140; Pub. L. 95-557, 
title V, Secs. 501(d), 504, Oct. 31, 1978, 92 Stat. 2111, 2112; Pub. L. 
96-153, title V, Sec. 501(b), Dec. 21, 1979, 93 Stat. 1133; Pub. L. 96-
399, title V, Sec. 507(b), Oct. 8, 1980, 94 Stat. 1670; Pub. L. 98-181, 
title V, Sec. 510, Nov. 30, 1983, 97 Stat. 1243; Pub. L. 100-242, title 
III, Secs. 305(a), 316(b), Feb. 5, 1988, 101 Stat. 1895, 1897; Pub. L. 
100-628, title X, Sec. 1043(a), Nov. 7, 1988, 102 Stat. 3273; Pub. L. 
104-180, title VII, Sec. 734(e)(1), Aug. 6, 1996, 110 Stat. 1603; Pub. 
L. 105-276, title V, Sec. 599C(d), Oct. 21, 1998, 112 Stat. 2661.)

                       References in Text

    Sections 1005a and 1005c(a), (b), and (c) of title 7, referred to in 
subsec. (b), were repealed by section 341(a) of Pub. L. 87-128, title 
III, Aug. 8, 1961, 75 Stat. 318 (set out as a note under section 1921 of 
Title 7, Agriculture), which also provided that references in other laws 
to the Bankhead-Jones Farm Tenant Act shall be construed as referring to 
appropriate provisions of section 1921 et seq. of Title 7. The fund 
established pursuant to section 1005a of Title 7 was renamed the 
Agricultural Credit Insurance Fund. See section 1929 of Title 7.

                          Codification

    Another section 801(b) of Pub. L. 91-609 amended section 1460(c)(1) 
of this title.


                               Amendments

    1998--Subsec. (a). Pub. L. 105-276 inserted ``, or any nonprofit 
limited partnership in which the general partner is a nonprofit 
entity,'' after ``private nonprofit organization'' in first sentence.
    1996--Subsec. (j). Pub. L. 104-180 added subsec. (j).
    1988--Subsec. (f)(1). Pub. L. 100-242, Sec. 316(b), struck out 
``and'' at end.
    Subsec. (f)(3). Pub. L. 100-242, Sec. 305(a), amended par. (3) 
generally. Prior to amendment, par. (3) read as follows: ``the term 
`domestic farm labor' means persons who receive a substantial portion 
(as determined by the Secretary) of their income as laborers on farms 
situated in the United States, Puerto Rico, or the Virgin Islands and 
either (A) are citizens of the United States, or (B) reside in the 
United States, Puerto Rico, or the Virgin Islands after being legally 
admitted for permanent residence therein.''
    Subsec. (i). Pub. L. 100-628 added subsec. (i).
    1983--Subsec. (h). Pub. L. 98-181 added subsec. (h).
    1980--Subsec. (a). Pub. L. 96-399 inserted reference to Indian 
tribe.
    1979--Subsec. (d). Pub. L. 96-153 repealed subsec. (d) which 
provided for a maximum of $38,000,000 for the aggregate amount of 
principal obligations of loans insured under this section.
    1978--Subsec. (d). Pub. L. 95-557, Sec. 501(d), substituted 
``$38,000,000 (subject to approval in an appropriation Act)'' for 
``$25,000,000''.
    Subsec. (g). Pub. L. 95-557, Sec. 504, added subsec. (g).
    1977--Subsec. (f)(3). Pub. L. 95-128 extended definition of 
``domestic farm labor'' to include laborers on farms situated in Puerto 
Rico and the Virgin Islands and the residents of the islands after being 
legally admitted for permanent residence.
    1970--Subsec. (a). Pub. L. 91-609, Sec. 801(a), authorized insurance 
of loans to broad-based nonprofit organizations and nonprofit 
organizations of farmworkers incorporated within the State and provided 
for housing and related facilities for domestic farm labor any place 
within the State where need exists.
    Subsec. (a)(2). Pub. L. 91-609, Sec. 801(b), substituted ``1'' for 
``5'' per centum.
    Subsec. (f)(1), (2). Pub. L. 91-609, Sec. 801(c), substituted 
``structures (including household furnishings)'' for ``structures'' in 
cls. (A) and (B).
    1968--Subsec. (f)(2). Pub. L. 90-448 included land necessary for an 
adequate site within the definition of ``related facilities''.
    1964--Subsec. (f)(3). Pub. L. 88-560 included residents of the 
United States after being legally admitted for permanent residence.


                            Cross References

    Agricultural Credit Insurance Fund as designation for farm tenant 
insurance fund, see section 1929 of Title 7, Agriculture.

                  Section Referred to in Other Sections

    This section is referred to in sections 1472, 1479, 1480, 1483, 
1486, 1487, 1490a, 1490j, 4851b, 8011, 13664 of this title; title 7 
section 2204f.
