
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-569 Section 704]
[CITE: 42USC1485]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
       CHAPTER 8A--SLUM CLEARANCE, URBAN RENEWAL, AND FARM HOUSING
 
                      SUBCHAPTER III--FARM HOUSING
 
Sec. 1485. Housing and related facilities for elderly persons 
        and families or other persons and families of low income
        

(a) Direct loans; authorization; terms and conditions; revolving fund; 
        appropriation

    The Secretary is authorized to make loans to private nonprofit 
corporations and consumer cooperatives and Indian tribes to provide 
rental or cooperative housing and related facilities for elderly or 
handicapped persons or families of low or moderate income or other 
persons and families of low income in rural areas, in accordance with 
terms and conditions substantially identical with those specified in 
section 1472 of this title; except that--
        (1) no such loan shall exceed the development cost or the value 
    of the security, whichever is less;
        (2) such a loan may be made for a period of up to 30 years from 
    the making of the loan; and
        (3) such a loan, when made to a consumer cooperative for 
    cooperative housing purposes, may, notwithstanding any other 
    provision of law, be made upon the condition that any person who is 
    admitted as an eligible member and tenant of the cooperative may not 
    subsequently be deprived of his membership or tenancy by reason of 
    his no longer meeting the income eligibility requirements 
    established by the Secretary.

There is authorized to be appropriated not to exceed $50,000,000, which 
shall constitute a revolving fund to be used by the Secretary in 
carrying out this subsection.

(b) Insurance of loans; authorization; terms and conditions; utilization 
        of Agricultural Credit Insurance Fund

    The Secretary is authorized to insure and make commitments to insure 
loans made to any individual, corporation, association, trust, Indian 
tribe, or partnership to provide rental or cooperative housing and 
related facilities for elderly or handicapped persons or families or 
other persons and families of moderate income in rural areas, in 
accordance with terms and conditions substantially identical with those 
specified in section 1472 of this title; except that--
        (1) no such loan shall exceed the development cost or the value 
    of the security, whichever is less;
        (2) such a loan may be made for a period of up to 30 years from 
    the making of the loan, but the Secretary may provide for periodic 
    payments based on an amortization schedule of 50 years with a final 
    payment of the balance due at the end of the term of the loan;
        (3) for insuring such loans, the Secretary shall utilize the 
    Agricultural Credit Insurance Fund subject to all the provisions of 
    section 1929 of title 7 and the second and third sentences of 
    section 1928 \1\ of title 7, including the authority in section 
    1929(f)(1) \1\ of title 7 to utilize the insurance fund to make, 
    sell, and insure loans which could be insured under this subsection; 
    but the aggregate of the principal amounts of such loans made by the 
    Secretary and not disposed of shall not exceed $10,000,000 
    outstanding at any one time; and the Secretary may take liens 
    running to the United States though the notes may be held by other 
    lenders;
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    \1\ See References in Text note below.
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        (4) such a loan, when made to a consumer cooperative for 
    cooperative housing purposes, may, notwithstanding any other 
    provision of law, be made upon the condition that any person who is 
    admitted as an eligible member and tenant of the cooperative may not 
    subsequently be deprived of his membership or tenancy by reason of 
    his no longer meeting the income eligibility requirements 
    established by the Secretary;
        (5) loans may be made to owners who are otherwise eligible under 
    this section to purchase and convert single-family residences to 
    rental units of two or more dwellings; and
        (6) the Secretary may make a new loan to the current borrower to 
    finance the final payment of the original loan for an additional 
    period not to exceed twenty years, if--
            (A) the Secretary determines--
                (i) it is more cost-efficient and serves the tenant base 
            more effectively to maintain the current property than to 
            build a new property in the same location; or
                (ii) the property has been maintained to such an extent 
            that it warrants retention in the current portfolio because 
            it can be expected to continue providing decent, safe, and 
            affordable rental units for the balance of the loan; and

            (B) the Secretary determines--
                (i) current market studies show that a need for low-
            income rural rental housing still exists for that area; and
                (ii) any other criteria established by the Secretary has 
            been met.

(c) Equity recapture loans and loans to nonprofit organizations and 
        public agencies

    With respect to a loan made or insured under subsection (a) or (b) 
of this section, the Secretary is authorized to--
        (1) make or insure an equity loan in the form of a supplemental 
    loan for the purpose of equity takeout to the owner of housing 
    financed with a loan made or insured under this section pursuant to 
    a contract entered into before December 15, 1989, for the purpose of 
    extending the affordability of the housing for low income families 
    or persons and very low-income families or persons for not less than 
    20 years, except that such loan may not exceed 90 percent of the 
    value of the equity in the project as determined by the Secretary;
        (2) transfer and reamortize an existing loan in connection with 
    assistance provided under paragraph (1); and
        (3) make or insure a loan to enable a nonprofit organization or 
    public agency to make a purchase described in section 1472(c)(5) of 
    this title.

(d) Construction requirements; detached units for cooperative housing

    No loan shall be made or insured under subsection (a) or (b) of this 
section unless the Secretary finds that the construction involved will 
be undertaken in an economical manner and will not be of elaborate or 
extravagant design or materials. However, specifically designed 
equipment required by elderly or handicapped persons or families shall 
not be considered elaborate or extravagant. A loan may be made or 
insured under subsection (a) or (b) of this section with respect to 
detached units, including those on scattered sites, for cooperative 
housing.

(e) Definitions

    As used in this section--
        (1) the term ``housing'' means new or existing housing suitable 
    for dwelling use by occupants eligible under this section, and such 
    term also means manufactured home rental parks where either the lots 
    or both the lots and the homes are available for use by occupants 
    eligible under this section; and such term also means congregate 
    housing facilities for elderly or handicapped persons or families 
    who require some supervision and central services but are otherwise 
    able to care for themselves; such housing for the handicapped may be 
    utilized in conjunction with educational and training facilities;
        (2) the term ``related facilities'' includes cafeterias or 
    dining halls, community rooms or buildings, appropriate recreation 
    facilities, and other essential service facilities;
        (3) the term ``congregate housing'' means housing in which (A) 
    some of the units may not have kitchen facilities, and (B) there is 
    a central dining facility to provide wholesome and economic meals 
    for elderly or handicapped persons or families.
        (4) the term ``development cost'' means the costs of 
    constructing, purchasing, improving, altering, or repairing new or 
    existing housing and related facilities and purchasing and improving 
    the necessary land, including necessary and appropriate fees and 
    charges, initial operating expenses up to 2 per centum of the 
    aforementioned costs, approved by the Secretary, impact fees, local 
    charges for installation, provision, or use of infrastructure, and 
    local assessments for public improvements and services imposed by 
    State and local governments. Such fees and charges may include 
    payments of qualified consulting organizations or foundations which 
    operate on a nonprofit basis and which render services or assistance 
    to nonprofit corporations or consumer cooperatives who provide 
    housing and related facilities for low or moderate income families. 
    Notwithstanding the first sentence of this paragraph, the term 
    ``development cost'' shall not include any initial operating 
    expenses in the case of any nonprofit corporation or consumer 
    cooperative that is financing housing under this section and has 
    been allocated a low-income housing tax credit by a housing credit 
    agency pursuant to section 42 of title 26.

(f) Administrative expenses

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

(g) Loans for financing transfers of memberships in cooperatives

    Notwithstanding the provisions of subsections (a) and (b) of this 
section, the Secretary may make and insure loans to consumer 
cooperatives to enable such cooperatives to finance the transfers of 
memberships in the cooperatives upon such terms and conditions as low- 
and moderate-income persons can reasonably afford, except that such 
loans shall not be made upon terms more favorable than are authorized 
under section 1490a(a) of this title, and that the total loan to a 
cooperative under this section shall not exceed the value of the 
property.

(h) Project transfers

    After August 6, 1996, the ownership or control of a project for 
which a loan is made or insured under this section may be transferred 
only if the Secretary determines that such transfer would further the 
provision of housing and related facilities for low-income families or 
persons and would be in the best interests of residents and the Federal 
Government.

(i) Limitations on cost increases after approval for project involving 
        newly constructed or substantially rehabilitated units; 
        applicable factors

    After approving a project involving newly constructed or 
substantially rehabilitated units under this section, the Secretary 
shall limit cost increases to those approved by the Secretary. The 
Secretary may approve those increases only for unforeseen factors beyond 
the owner's control, design changes required by the Secretary or the 
local government, or changes in financing approved by the Secretary.

(j) Contract preferences for providing units in newly constructed 
        projects

    For the purpose of achieving the lowest cost in providing units in 
newly constructed projects assisted under this section, the Secretary 
shall give a preference in entering into contracts under this section 
for projects which are to be located on specific tracts of land provided 
by States, units of local government, or others if the Secretary 
determines that the tract of land is suitable for such housing, and that 
affording such preference will be cost effective.

(k) Management fees

    The Secretary shall assure that management fees are not excessive 
when a project developed under this section is managed by the developer 
or an affiliate of the developer.

(l) Determination of market feasibility of project

    For purposes of determining the market feasibility of any project to 
be assisted under this section--
        (1) in the case of any applicant who applies for rental 
    assistance payments under section 1490a of this title in connection 
    with such project, the Secretary shall consider the availability of 
    such rental assistance payments with respect to the project and 
    shall require such applicant to demonstrate that a market exists for 
    persons and families eligible for such rental assistance payments; 
    and
        (2) in the case of any applicant whose project is expected to 
    utilize any assistance under a program of a State, or political 
    subdivision thereof, that is similar to such assistance payments 
    under section 1490a of this title, the Secretary shall only require 
    such applicant to demonstrate that--
            (A) a market exists for persons and families eligible for 
        such program of assistance;
            (B) such program of assistance will provide rental 
        assistance for a period of not less than five years, and, at the 
        option of the applicant, either that there is a reasonable 
        assurance that the contract for assistance will be extended or 
        renewed, or for the term of the loan remaining after the period 
        of such assistance, that an adequate rental market exists for 
        the project without such assistance; and
            (C) during the term of such rental assistance contracts, 
        such State or political subdivision shall make available the 
        amounts required for such rental assistance not less than 
        annually.

(m) Standards for housing and related facilities rehabilitated or 
        repaired; establishment, criteria, etc.

    The Secretary shall establish standards for housing and related 
facilities rehabilitated or repaired with amounts received under a loan 
made or insured under this section. Standards established by the 
Secretary under this subsection shall provide that except for 
substantial rehabilitation the particular items or systems repaired or 
rehabilitated must meet appropriate levels of quality or performance 
comparable to those levels prescribed by the Secretary of Housing and 
Urban Development for rehabilitation, but shall not require that such 
items or systems or the remainder of the property meet the standards 
which are applicable to new construction. The Secretary shall ensure 
that standards prescribed under this subsection provide decent, safe, 
and sanitary housing and related facilities.

(n) Assistance to projects located on more than one site

    The Secretary may not deny assistance under this section or section 
1490a of this title on the basis that the project involved is to be 
located on more than one site.

(o) Rental assistance payments as affecting assistance to projects or 
        occupancy by eligible persons

    The Secretary may not (1) deny assistance under this section on the 
basis that rental assistance payments under section 1490a of this title 
may be required unless the authority to provide such assistance is not 
available; or (2) promulgate any regulation that would have the effect 
of denying occupancy to eligible persons on the basis that such persons 
require rental assistance payments under section 1490a of this title.

(p) Occupancy by low income persons and families other than very low-
        income persons and families

    (1) To the extent assistance is available under section 1490a(a)(2) 
of this title, not more than 25 per centum of the dwelling units which 
were available for occupancy under this section prior to November 30, 
1983, and which will be leased on or after November 30, 1983, shall be 
available for leasing by low income persons and families other than very 
low-income persons and families.
    (2) To the extent assistance is available under section 1490a(a)(2) 
of this title, not more than 5 per centum of the dwelling units which 
become available for occupancy under this section on or after November 
30, 1983, shall be available for leasing by low income persons and 
families other than very low-income persons and families.
    (3) Units in projects financed under this section which become 
available for occupancy after November 30, 1983, shall not be available 
for occupancy by persons and families other than very low-income persons 
and families if the authority to provide assistance for such persons is 
available.
    (4) In projects financed under this section, units that have been 
allocated a low-income housing tax credit by a housing credit agency 
pursuant to section 42 of title 26 shall not be available for occupancy 
by persons or families other than persons or families with incomes not 
in excess of the qualifying income applicable to such units pursuant to 
subparagraph (A) or (B) of section 42(g)(1) of title 26.
    (5) The Secretary shall coordinate the processing of any application 
for a loan under this section for a project and the processing of any 
application for assistance under section 1490a(a)(2) of this title with 
respect to housing units in the same project in an economical and 
efficient manner. At the time the Secretary enters into a commitment to 
make or insure a loan under this section the Secretary shall obligate 
amounts for assistance payments under section 1490a(a)(2) of this title 
for the project, to the extent that such amounts are available and the 
Secretary determines such assistance is necessary for the market 
feasibility of the project.

(q) Determination of income of person or family occupying financed 
        housing

    In determining the income of a person or family occupying housing 
financed under this section, the Secretary shall consider the value of 
that person's or family's assets in the same manner as the Secretary of 
Housing and Urban Development considers such value for the purpose of 
the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.].

(r) Operating reserve and equity contribution requirements; regulations 
        to implement adjustment by negotiated rulemaking procedure

    (1) the \2\ Secretary--
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    \2\ So in original. Probably should be capitalized.
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        (A) may require that the initial operating reserve under this 
    section may be in the form of an irrevocable letter of credit; and
        (B) except as provided in paragraph (2), may require not more 
    than a 3 percent contribution to equity, except that the Secretary 
    shall require a 5 percent contribution in the case of a project that 
    is allocated a low-income housing tax credit pursuant to section 42 
    of title 26.

    (2) The Secretary may adjust the amount of equity contribution to 
ensure that assistance provided is not more than is necessary to provide 
affordable housing after taking account of assistance from all Federal, 
State, and local sources.
    (3) Not later than 60 days after August 6, 1996, the Secretary shall 
issue regulations to implement subsection (r)(2) of this section in 
accordance with the negotiated rulemaking procedures set forth in 
subchapter III of chapter 5 of title 5: Provided, That if the negotiated 
rulemaking is not completed within the designated time, the Secretary 
shall proceed to promulgate regulations under the rulemaking authority 
contained in section 557 of title 5.

(s) Limitation of fees on loans

    No fee other than a late fee may be imposed by or for the Secretary 
or any other Federal agency on or with respect to a loan made or insured 
under this section.

(t) Equity takeout loans

                            (1) Authority

        The Secretary is authorized to guarantee an equity loan (in the 
    form of a supplemental loan) to an owner of housing financed with a 
    loan made or insured under subsection (b) of this section, only if 
    the Secretary determines, after taking into account local market 
    conditions, that there is reasonable likelihood that the housing 
    will continue as decent, safe, and sanitary housing for the 
    remaining life of the original loan on the project made or insured 
    under subsection (b) of this section and that such an equity loan 
    is--
            (A) necessary to provide a fair return on the owner's 
        investment in the housing;
            (B) the least costly alternative for the Federal Government 
        that is consistent with carrying out the purposes of this 
        subsection; and
            (C) would not impose an undue hardship on tenants or an 
        unreasonable cost to the Federal Government.

    The amount of loans guaranteed under this subsection shall be 
    subject to limits provided in appropriations Acts.

                             (2) Timing

        The Secretary is authorized to guarantee an equity loan under 
    this subsection after the expiration of the 20-year period beginning 
    on the date that an existing loan under subsection (b) of this 
    section was made or insured. Not more than one equity loan under 
    this subsection may be provided for any project.

                      (3) Amount of the takeout

        The amount of an equity loan under this subsection shall not 
    exceed the difference between the outstanding principal on debt 
    secured by the project and 90 percent of the appraised value of the 
    project. The appraised value of the project shall be determined by 2 
    independent appraisers, 1 of whom shall be selected by the Secretary 
    and 1 of whom shall be selected by the owner. If the 2 appraisers 
    fail to agree on the value of the project, the Secretary and the 
    owner shall jointly select a third appraiser whose appraisal shall 
    be binding on the Secretary and the owner. The amount of the equity 
    loan shall not exceed 30 percent of the amount of the original 
    appraised value of the project made or insured under subsection (b) 
    of this section.

                       (4) Submission of plan

        An owner requesting an equity loan under this subsection shall 
    submit a plan acceptable to the Secretary to ensure that the cost of 
    amortizing an equity loan under paragraph (1) does not result in the 
    displacement of very-low-income tenants or substantially alter the 
    income mix of the tenants in the project.

                           (5) Regulations

        The Secretary shall issue final regulations within 180 days from 
    December 15, 1989.

                         (6) Effective date

        The requirements of this subsection shall apply to any loan 
    obligated under this section on or after December 15, 1989. This 
    subsection shall not require retroactive reserve account payments 
    with respect to any loan that was obligated on or after December 15, 
    1989, and on or before June 16, 1990, but reserve account payments 
    shall be required for such loans beginning on November 28, 1990.

(u) Reuse of loan authority

    Loan authority that is obligated under this section but that is not 
expended due to any action that removes the original borrower, may be 
reallocated to a different borrower during the same fiscal year in which 
the loan authority was obligated. Any loan authority under this section 
appropriated or made available within limits established in 
appropriations Acts shall remain available until expended.

(v) Assumption of loans

    The Secretary may provide for the assumption or transfer of a loan 
or loan obligation under this section to any person or entity qualified 
to receive a loan or loan obligation under this section in any case of 
default or foreclosure with respect to the original borrower. The 
Secretary shall provide in each assumption or transfer under this 
subsection for the assumption of the obligations, rights, and interests 
under the terms of the loan or loan obligation or such other terms as 
the Secretary determines appropriate.

(w) Set-aside of rural rental housing funds

                            (1) Authority

        Except as provided in paragraph (2), the Secretary shall set 
    aside from amounts made available for each State for loans under 
    this section, not less than 9 percent of the amounts available in 
    each fiscal year. Amounts set aside shall be available only for 
    nonprofit entities in the State, which may not be wholly or 
    partially owned or controlled by a for-profit entity. A partnership, 
    that has as its general partner a nonprofit entity or the nonprofit 
    entity's for-profit subsidiary, is eligible to receive funds set 
    aside under this subsection to sponsor a project which is receiving 
    low-income housing tax credits authorized under section 42 of title 
    26. For the purposes of this subsection, a nonprofit entity is an 
    organization that--
            (A) will own an interest in a project to be financed under 
        this section and will materially participate in the development 
        and the operation of the project;
            (B) is a private organization that has nonprofit, tax exempt 
        status under section 501(c)(3) or section 501(c)(4) of title 26;
            (C) has among its purposes the planning, development, or 
        management of low-income housing or community development 
        projects; and
            (D) is not affiliated with or controlled by a for-profit 
        organization.

                     (2) Minimum State set-aside

        If the amount set aside under paragraph (1) for any State is 
    less than $750,000 in any fiscal year, the Secretary shall pool such 
    amount together with set-aside amounts from other States whose set-
    aside is less than $750,000, and shall make such amounts available 
    for such eligible entities under paragraph (1) in any such State. 
    The Secretary shall establish a procedure to provide that any 
    amounts pooled under this paragraph from the allocation for any 
    State in any fiscal year that are not obligated during a reasonable 
    period in such year shall be made available for any such eligible 
    entities under paragraph (1) in such State. The Secretary may 
    provide amounts available for reallocation under this subsection in 
    excess of $750,000 in a given State, if such amounts are necessary 
    to finance a project under this section.

                         (3) Unused amounts

        (A) Equitable distribution

            Any amounts set aside under this subsection from the 
        allocation for any State that are not obligated by 9 months 
        after the allocation, shall first be pooled and made available 
        to any other eligible nonprofit entity in any State as defined 
        in this subsection. The Secretary shall make reasonable efforts 
        to ensure that pooled funds are distributed under this 
        subparagraph in an equitable manner.

        (B) Return to the States

            After funds have been pooled and obligated for 30 days, the 
        Secretary shall return any remaining funds to the States on a 
        proportional basis for use by any other eligible entity as 
        defined in this section.

(x) Uniform project costs; coordination of housing resources and tax 
        benefits

    The Secretary shall--
        (1) establish standard guidelines for State offices that 
    describe allowable development costs which are required for 
    development of all projects under this section, without regard to 
    whether the project was allocated a low-income housing tax credit;
        (2) require each State to establish a process for coordinating 
    the selection of projects under this section with the housing needs 
    and priorities as established in a State comprehensive housing 
    affordability strategy under section 12705 of this title and a low-
    income housing tax credit allocation plan under section 42 of title 
    26; and
        (3) develop, in consultation with housing credit agencies (as 
    that term is defined under section 42 of title 26), uniform 
    procedures for identifying and sharing information on project costs, 
    builder profit, identity of interests relationships, and other 
    factors, as appropriate, with the relevant housing credit agency for 
    projects that are allocated a low-income housing tax credit pursuant 
    to section 42(h) of title 26 for the purpose of achieving compliance 
    with section 3545(d) of this title.

(y) Service coordinators

                             (1) Grants

        The Secretary may make grants under this subsection, with 
    respect to any project that the Secretary determines has a 
    sufficient number of frail elderly residents, for the cost of 
    employing or otherwise retaining the services of one or more 
    individuals to coordinate services provided to frail elderly 
    residents of the project (in this subsection referred to as a 
    ``service coordinator''), who shall be responsible for--
            (A) assessing the supportive service needs of frail elderly 
        residents of the project, based on objective criteria and 
        interviews with such residents;
            (B) working with service providers to design the provision 
        of services to meet the needs of frail elderly residents of the 
        project, taking into consideration the needs and desires of such 
        residents and their ability and willingness to pay for such 
        services, as expressed by the residents;
            (C) mobilizing public and private resources to obtain 
        funding for such services for such residents;
            (D) monitoring and evaluating the impact and effectiveness 
        of any supportive services provided for such residents;
            (E) consulting and coordinating with any appropriate public 
        and private agencies regarding the provision of supportive 
        services; and
            (F) performing such other duties that the Secretary deems 
        appropriate to enable frail elderly persons residing in 
        federally assisted housing to live with dignity and 
        independence.

                         (2) Qualifications

        Individuals employed as service coordinators pursuant to this 
    subsection shall meet the minimum qualifications and standards 
    established under section 8011(d)(4) of this title for service 
    coordinators under a congregate housing services program.

                    (3) Application and selection

        The Secretary shall provide for the form and manner of 
    applications for grants under this subsection and for the selection 
    of applicants to receive the grants.

                    (4) ``Frail elderly'' defined

        For purposes of this subsection, the term ``frail elderly'' has 
    the meaning given the term in section 8011(k) of this title.

(z) Equity skimming penalty

    Whoever, as an owner, agent, or manager, 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 fund 
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.

(July 15, 1949, ch. 338, title V, Sec. 515, as added Pub. L. 87-723, 
Sec. 4(b), Sept. 28, 1962, 76 Stat. 671; amended Pub. L. 88-340, June 
30, 1964, 78 Stat. 233; Pub. L. 88-560, title V, Sec. 501(d) Sept. 2, 
1964, 78 Stat. 796; Pub. L. 89-117, title X, Sec. 1005(c), Aug. 10, 
1965, 79 Stat. 501; Pub. L. 89-754, title VIII, Secs. 804, 805, Nov. 3, 
1966, 80 Stat. 1282; Pub. L. 91-78, Sec. 1, Sept. 30, 1969, 83 Stat. 
125; Pub. L. 91-152, title IV, Sec. 413(a), Dec. 24, 1969, 83 Stat. 398; 
Pub. L. 91-609, title VIII, Sec. 803(c), Dec. 31, 1970, 84 Stat. 1807; 
Pub. L. 93-117, Sec. 13(b), Oct. 2, 1973, 87 Stat. 423; Pub. L. 93-383, 
title V, Secs. 509(b), 510, Aug. 22, 1974, 88 Stat. 695; Pub. L. 95-60, 
Sec. 4(b), June 30, 1977, 91 Stat. 258; Pub. L. 95-80, Sec. 4(b), July 
31, 1977, 91 Stat. 340; Pub. L. 95-128, title V, Secs. 501(b), 
507(a)(3), 508, Oct. 12, 1977, 91 Stat. 1138, 1140, 1141; Pub. L. 95-
406, Sec. 7(b), Sept. 30, 1978, 92 Stat. 881; Pub. L. 95-557, title V, 
Sec. 501(e), Oct. 31, 1978, 92 Stat. 2111; Pub. L. 96-71, Sec. 5(b), 
Sept. 28, 1979, 93 Stat. 502; Pub. L. 96-105, Sec. 5(b), Nov. 8, 1979, 
93 Stat. 795; Pub. L. 96-153, title V, Sec. 501(f), Dec. 21, 1979, 93 
Stat. 1134; Pub. L. 96-372, Sec. 6(b), Oct. 3, 1980, 94 Stat. 1364; Pub. 
L. 96-399, title V, Secs. 501(b), 502, 503, 507(c), Oct. 8, 1980, 94 
Stat. 1668, 1670; Pub. L. 97-35, title III, Sec. 351(b), Aug. 13, 1981, 
95 Stat. 420; Pub. L. 97-289, Sec. 3(a), Oct. 6, 1982, 96 Stat. 1231; 
Pub. L. 98-35, Sec. 3(a), May 26, 1983, 97 Stat. 198; Pub. L. 98-109, 
Sec. 4(a), Oct. 1, 1983, 97 Stat. 746; Pub. L. 98-181, title V, 
Secs. 511(b), 512, Nov. 30, 1983, 97 Stat. 1244; Pub. L. 98-479, title 
I, Sec. 105(e), Oct. 17, 1984, 98 Stat. 2227; Pub. L. 99-120, Sec. 3(a), 
Oct. 8, 1985, 99 Stat. 503; Pub. L. 99-156, Sec. 3(a), Nov. 15, 1985, 99 
Stat. 816; Pub. L. 99-219, Sec. 3(a), Dec. 26, 1985, 99 Stat. 1731; Pub. 
L. 99-267, Sec. 3(a), Mar. 27, 1986, 100 Stat. 74; Pub. L. 99-272, title 
III, Sec. 3009(a), Apr. 7, 1986, 100 Stat. 105; Pub. L. 99-289, 
Sec. 1(b), May 2, 1986, 100 Stat. 412; Pub. L. 99-345, Sec. 1, June 24, 
1986, 100 Stat. 673; Pub. L. 99-430, Sept. 30, 1986, 100 Stat. 986; Pub. 
L. 100-122, Sec. 1, Sept. 30, 1987, 101 Stat. 793; Pub. L. 100-154, Nov. 
5, 1987, 101 Stat. 890; Pub. L. 100-170, Nov. 17, 1987, 101 Stat. 914; 
Pub. L. 100-179, Dec. 3, 1987, 101 Stat. 1018; Pub. L. 100-200, Dec. 21, 
1987, 101 Stat. 1327; Pub. L. 100-242, title II, Secs. 242, 263, title 
III, Secs. 301(e), 306, 307, 316(c), Feb. 5, 1988, 101 Stat. 1890, 1891, 
1893, 1895, 1896, 1898; Pub. L. 100-628, title X, Sec. 1042, Nov. 7, 
1988, 102 Stat. 3273; Pub. L. 101-137, Sec. 7(a), Nov. 3, 1989, 103 
Stat. 825; Pub. L. 101-235, title II, Sec. 207, title IV, Sec. 402, Dec. 
15, 1989, 103 Stat. 2042, 2048; Pub. L. 101-625, title VII, 
Secs. 701(e), 712, 713, Nov. 28, 1990, 104 Stat. 4282, 4291, 4292; Pub. 
L. 102-142, title VII, Sec. 743(a), Oct. 28, 1991, 105 Stat. 915; Pub. 
L. 102-230, Sec. 4, Dec. 12, 1991, 105 Stat. 1721; Pub. L. 102-550, 
title VII, Secs. 701(e), 707(a)-(f)(1), 708(a), Oct. 28, 1992, 106 Stat. 
3834, 3836-3839; Pub. L. 104-120, Sec. 4(b), (c), Mar. 28, 1996, 110 
Stat. 835; Pub. L. 104-180, title VII, Sec. 734(a), (c)(1), (2), (3)(C), 
(d), (e)(2), Aug. 6, 1996, 110 Stat. 1601-1603; Pub. L. 105-86, title 
VII, Sec. 735(b), Nov. 18, 1997, 111 Stat. 2110; Pub. L. 105-276, title 
V, Sec. 599C(b), Oct. 21, 1998, 112 Stat. 2661.)

                       References in Text

    Section 1928 of title 7, referred to in subsec. (b)(3), was amended 
generally by Pub. L. 104-127, title VI, Sec. 605, Apr. 4, 1996, 110 
Stat. 1086, and, as so amended, consists of subsecs. (a) and (b) which 
are substantially similar to provisions formerly contained in the third 
sentence of such section.
    Section 1929(f)(1) of title 7, referred to in subsec. (b)(3), was 
repealed and section 1929(f)(2) was redesignated section 1929(f)(1) by 
Pub. L. 104-127, title VII, Sec. 744, Apr. 4, 1996, 110 Stat. 1125.
    The United States Housing Act of 1937, referred to in subsec. (q), 
is act Sept. 1, 1937, ch. 896, as revised generally by Pub. L. 93-383, 
title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653, and amended, which 
is classified generally to chapter 8 (Sec. 1437 et seq.) of this title. 
For complete classification of this Act to the Code, see Short Title 
note set out under section 1437 of this title and Tables.

                          Codification

    Section 203(a) of Pub. L. 100-242, as amended, which was formerly 
set out in a note under section 1715l of Title 12, Banks and Banking, 
and which provided that on Nov. 28, 1990, the amendment made by section 
263 of Pub. L. 100-242 is repealed and section is to read as it would 
without such amendment, was omitted in the general amendment of subtitle 
A of title II of Pub. L. 100-242 by Pub. L. 101-625.


                               Amendments

    1998--Subsec. (b)(4) to (7). Pub. L. 105-276, Sec. 599C(b)(1), 
redesignated pars. (5) to (7) as (4) to (6), respectively, and struck 
out former par. (4) which read as follows: ``no loan shall be insured 
under this subsection after September 30, 1998;''.
    Subsec. (w)(1). Pub. L. 105-276, Sec. 599C(b)(2), substituted ``each 
fiscal year'' for ``fiscal year 1998'' in first sentence.
    1997--Subsec. (a)(2). Pub. L. 105-86, Sec. 735(b)(3)(A), substituted 
``up to 30 years'' for ``up to fifty years''.
    Subsec. (b)(2). Pub. L. 105-86, Sec. 735(b)(3)(B)(i), added par. (2) 
and struck out former par. (2) which read as follows: ``provide for 
complete amortization by periodic payments within such term as the 
Secretary may prescribe;''.
    Subsec. (b)(4). Pub. L. 105-86, Sec. 735(b)(1), substituted 
``September 30, 1998'' for ``September 30, 1997''.
    Subsec. (b)(7). Pub. L. 105-86, Sec. 735(b)(3)(B)(ii)-(iv), added 
par. (7).
    Subsec. (w)(1). Pub. L. 105-86, Sec. 735(b)(2), substituted ``fiscal 
year 1998'' for ``fiscal year 1997''.
    1996--Subsec. (b)(4). Pub. L. 104-180, Sec. 734(a)(1), substituted 
``September 30, 1997'' for ``September 30, 1996''.
    Pub. L. 104-120, Sec. 4(b), substituted ``September 30, 1996'' for 
``September 30, 1994''.
    Subsec. (c)(1). Pub. L. 104-180, Sec. 734(c)(3)(C), substituted 
``December 15, 1989'' for ``December 21, 1979''.
    Subsec. (h). Pub. L. 104-180, Sec. 734(c)(1), added subsec. (h).
    Subsec. (r). Pub. L. 104-180, Sec. 734(d)(1), added subsec. (r) and 
struck out former subsec. (r) which read as follows: ``The Secretary--
        ``(1) may require that the initial operating reserve under this 
    section may be in the form of an irrevocable letter of credit; and
        ``(2) may not require more than a 3 percent contribution to 
    equity, except that the Secretary shall require a 5 percent 
    contribution in the case of a project that is allocated a low-income 
    housing tax credit pursuant to section 42 of title 26.''
    Subsec. (t)(4). Pub. L. 104-180, Sec. 734(c)(2), redesignated par. 
(6) as (4) and struck out heading and text of former par. (4). Text read 
as follows: ``For each initial loan made or insured under subsection (b) 
of this section pursuant to a contract entered into after the date this 
subsection takes effect, the owner shall make monthly payments from 
project income to the Secretary for deposit in a reserve account for the 
project. Such monthly payments shall, in the first year after the loan 
is made or insured, equal $2 for each unit in the project, and shall 
increase by $2 annually until the expiration of the 20-year period 
beginning on the date that the loan was made or insured, except that 
such initial payments, any accrued payments, and annual increases shall 
not be required for a unit occupied by a low-income family or individual 
who is paying more than 30 percent of the family's or individual's 
adjusted income in rent. The rent on a unit for which payment is made 
under this paragraph shall be increased by the amount of such payment.''
    Subsec. (t)(5). Pub. L. 104-180, Sec. 734(c)(2), redesignated par. 
(7) as (5) and struck out former par. (5) which read as follows:
    ``(5) Reserve account.--
        ``(A) Payments under paragraph (4) shall be deposited in an 
    interest bearing account that the Secretary shall establish for the 
    project.
        ``(B) The Secretary shall make available amounts in the reserve 
    account only for payments of principal and interest on an equity 
    loan under this subsection. Such payments shall be in amounts 
    necessary to ensure that rent payments made by low-income families 
    residing in the housing do not exceed the maximum rent under section 
    1490a(a)(2)(A) of this title;
        ``(C) Any payments to the account, and interest on such 
    payments, not expended in the project from which such payments were 
    made, shall be used in other projects to make payments of principal 
    and interest on an equity loan under this subsection. Such payments 
    shall be in amounts necessary to ensure that rent payments made by 
    low-income families residing in the housing do not exceed the 
    maximum rent under section 1490a(a)(2)(A) of this title.
        ``(D) The Secretary shall make payments from accounts under this 
    paragraph only to the extent provided in appropriations Acts.''
    Subsec. (t)(6) to (8). Pub. L. 104-180, Sec. 734(c)(2)(B), 
redesignated pars. (6) to (8) as (4) to (6), respectively.
    Subsec. (w)(1). Pub. L. 104-180, Sec. 734(a)(2), substituted 
``fiscal year 1997'' for ``fiscal year 1996''.
    Pub. L. 104-120, Sec. 4(c), substituted ``fiscal year 1996'' for 
``fiscal years 1993 and 1994''.
    Subsec. (z). Pub. L. 104-180, Sec. 734(d)(2), (e)(2), added subsec. 
(z) and struck out heading and text of former subsec. (z). Text 
consisted of 3 pars. which denied Secretary authority to refuse to make 
complying loan solely because facilities were in rural or remote area or 
to provide preference for project based on availability of particular 
essential service and required Secretary to give preference to proposed 
projects serving rural communities 20 or more miles from an urban area.
    1992--Subsec. (b)(4). Pub. L. 102-550, Sec. 701(e), substituted 
``1994'' for ``1992''.
    Subsec. (e)(4). Pub. L. 102-550, Sec. 707(a), struck out ``and'' 
before ``initial operating expenses up to'', inserted ``, impact fees, 
local charges for installation, provision, or use of infrastructure, and 
local assessments for public improvements and services imposed by State 
and local governments'' after ``approved by the Secretary'', and 
inserted at end ``Notwithstanding the first sentence of this paragraph, 
the term `development cost' shall not include any initial operating 
expenses in the case of any nonprofit corporation or consumer 
cooperative that is financing housing under this section and has been 
allocated a low-income housing tax credit by a housing credit agency 
pursuant to section 42 of title 26.''
    Subsec. (l)(1). Pub. L. 102-550, Sec. 707(b)(1), added par. (1) and 
struck out former par. (1) which read as follows: ``in the case of any 
applicant whose project is expected to utilize rental assistance 
payments under section 1490a of this title, the Secretary shall only 
require such applicant to demonstrate that a market exists for persons 
and families eligible for such rental assistance payments; and''.
    Subsec. (p)(4). Pub. L. 102-550, Sec. 707(b)(2)(1), substituted 
period at end for ``, except when the Secretary determines that the 
continued vacancy of units that have been unoccupied for at least 6 
months threatens the financial viability of the project. The preceding 
sentence shall not be interpreted as authorizing the Secretary to--
        ``(A) limit the ability of a housing credit agency to require an 
    owner of housing, in order to receive a low-income housing tax 
    credit, to enter into a restrictive covenant, in such form and for 
    such period as the housing credit agency deems appropriate, to 
    maintain the occupancy characteristics of the project as prescribed 
    in section 42(h)(6) of title 26; or
        ``(B) deny or delay closing of financing under this section by 
    reason of the existence, or occupancy terms, of any such restrictive 
    covenant.''
    Subsec. (p)(5). Pub. L. 102-550, Sec. 707(b)(2)(2), added par. (5).
    Subsec. (r)(2). Pub. L. 102-550, Sec. 707(c), inserted before period 
at end ``, except that the Secretary shall require a 5 percent 
contribution in the case of a project that is allocated a low-income 
housing tax credit pursuant to section 42 of title 26''.
    Subsec. (w)(1). Pub. L. 102-550, Sec. 708(a)(1)-(3), substituted 
``not less than 9 percent of the amounts available in fiscal years 1993 
and 1994'' for ``not less than 7 percent of the amounts available in 
fiscal year 1991 and not less than 9 percent of the amounts available in 
fiscal year 1992'' in first sentence, struck out ``or under whole or 
partial control with a for-profit entity'' after ``by a for-profit 
entity'' in second sentence, and inserted at end ``A partnership, that 
has as its general partner a nonprofit entity or the nonprofit entity's 
for-profit subsidiary, is eligible to receive funds set aside under this 
subsection to sponsor a project which is receiving low-income housing 
tax credits authorized under section 42 of title 26. For the purposes of 
this subsection, a nonprofit entity is an organization that--'' and 
subpars. (A) to (D).
    Subsec. (w)(2). Pub. L. 102-550, Sec. 708(a)(4), inserted at end 
``The Secretary may provide amounts available for reallocation under 
this subsection in excess of $750,000 in a given State, if such amounts 
are necessary to finance a project under this section.''
    Subsec. (w)(3). Pub. L. 102-550, Sec. 708(a)(5), added par. (3) and 
struck out heading and text of former par. (3). Text read as follows: 
``Any amounts set aside or pooled under this subsection from the 
allocation for any State in any fiscal year that are not obligated by a 
reasonable date established by the Secretary (which shall be after the 
expiration of the period under paragraph (2)) shall be made available to 
any entity eligible under this section in such State.''
    Subsec. (x). Pub. L. 102-550, Sec. 707(d), added subsec. (x).
    Subsec. (y). Pub. L. 102-550, Sec. 707(e), added subsec. (y).
    Subsec. (z). Pub. L. 102-550, Sec. 707(f)(1), added subsec. (z).
    1991--Subsec. (b)(4). Pub. L. 102-142 substituted ``1992'' for 
``1991''.
    Subsec. (p)(4). Pub. L. 102-230 inserted at end ``The preceding 
sentence shall not be interpreted as authorizing the Secretary to--'' 
and subpars. (A) and (B).
    1990--Subsec. (b)(4). Pub. L. 101-625, Sec. 701(e), substituted 
``1991'' for ``1990''.
    Subsec. (t)(3). Pub. L. 101-625, Sec. 712(a)(1), substituted 
``original appraised value of the project'' for ``original loan on the 
project''.
    Subsec. (t)(4). Pub. L. 101-625, Sec. 712(a)(2), inserted 
``initial'' before ``loan'' in first sentence and inserted ``initial 
payments, any accrued payments, and'' after ``except that such'' in 
second sentence.
    Subsec. (t)(8). Pub. L. 101-625, Sec. 712(a)(3), added par. (8) and 
struck out former par. (8) which read as follows: ``The requirements of 
this subsection shall apply to any applications for assistance under 
this section on or after the expiration of 180 days from December 15, 
1989.''
    Subsec. (u). Pub. L. 101-625, Sec. 712(b), inserted at end ``Any 
loan authority under this section appropriated or made available within 
limits established in appropriations Acts shall remain available until 
expended.''
    Subsec. (v). Pub. L. 101-625, Sec. 712(c), added subsec. (v).
    Subsec. (w). Pub. L. 101-625, Sec. 713, added subsec. (w).
    1989--Subsec. (b)(4). Pub. L. 101-137 substituted ``September 30, 
1990'' for ``September 30, 1989''.
    Subsec. (t). Pub. L. 101-235, Sec. 207, added subsec. (t).
    Subsec. (u). Pub. L. 101-235, Sec. 402, added subsec. (u).
    1988--Subsec. (b)(4). Pub. L. 100-242, Sec. 301(e), substituted 
``September 30, 1989'' for ``March 15, 1988''.
    Subsec. (c). Pub. L. 100-242, Sec. 242, added subsec. (c). Former 
subsec. (c) redesignated (d).
    Subsecs. (d) to (g). Pub. L. 100-242, Sec. 242(1), redesignated 
former subsecs. (c) to (f) as (d) to (g), respectively.
    Subsec. (h). Pub. L. 100-628 struck out subsec. (h) which read as 
follows: ``The Secretary shall limit increases in rents on or after 
November 30, 1983, for newly constructed or substantially rehabilitated 
projects assisted under this section to the lesser of the actual 
operating cost increases incurred or the amount of operating cost 
increases incurred with respect to comparable rental dwelling units of 
various sizes and types in the same market area which are suitable for 
occupancy by families and persons assisted under this section. Where no 
comparable dwelling units exist in the same market area, the Secretary 
shall have authority to approve such increases in accordance with the 
best available data regarding operating cost increases in rental 
dwelling units.''
    Pub. L. 100-242, Sec. 242(1), redesignated subsec. (g) as (h). 
Former subsec. (h) redesignated (i).
    Subsecs. (i) to (p). Pub. L. 100-242, Sec. 242(1), redesignated 
subsecs. (h) to (o) as (i) to (p), respectively.
    Subsec. (p)(1). Pub. L. 100-242, Sec. 316(c), substituted ``on or 
after such date'' for ``on or after such effective date'', which for 
purposes of codification was translated as ``on or after November 30, 
1983'', thus requiring no change in text.
    Subsec. (p)(4). Pub. L. 100-242, Sec. 306, added par. (4).
    Subsec. (q). Pub. L. 100-242, Sec. 242(1), redesignated former 
subsec. (p) as (q).
    Subsec. (r). Pub. L. 100-242, Sec. 263, added subsec. (r).
    Subsec. (s). Pub. L. 100-242, Sec. 307, added subsec. (s).
    1987--Subsec. (b)(4). Pub. L. 100-200 substituted ``March 15, 1988'' 
for ``December 16, 1987''.
    Pub. L. 100-179 substituted ``December 16, 1987'' for ``December 2, 
1987''.
    Pub. L. 100-170 substituted ``December 2, 1987'' for ``November 15, 
1987''.
    Pub. L. 100-154 substituted ``November 15, 1987'' for ``October 31, 
1987''.
    Pub. L. 100-122 substituted ``October 31, 1987'' for ``September 30, 
1987''.
    1986--Subsec. (b)(4). Pub. L. 99-430 substituted ``September 30, 
1987'' for ``September 30, 1986''.
    Pub. L. 99-345 substituted ``September 30, 1986'' for ``June 6, 
1986''.
    Pub. L. 99-289 substituted ``June 6, 1986'' for ``April 30, 1986''.
    Pub. L. 99-272 directed amendment identical to Pub. L. 99-219, 
substituting ``March 17, 1986'' for ``December 15, 1985''.
    Pub. L. 99-267 substituted ``April 30, 1986'' for ``March 17, 
1986''.
    1985--Subsec. (b)(4). Pub. L. 99-219 substituted ``March 17, 1986'' 
for ``December 15, 1985''.
    Pub. L. 99-156 substituted ``December 15, 1985'' for ``November 14, 
1985''.
    Pub. L. 99-120 substituted ``November 14, 1985'' for ``September 30, 
1985''.
    1984--Subsec. (k)(2)(B). Pub. L. 98-479 inserted ``, at the option 
of the applicant, either that there is a reasonable assurance that the 
contract for assistance will be extended or renewed, or''.
    1983--Subsec. (a)(2) to (4). Pub. L. 98-181, Sec. 512(c)(1), (2), 
struck out par. (2) which related to rates of interest on loans, and 
redesignated pars. (3) and (4) as (2) and (3), respectively.
    Subsec. (b)(2) to (4). Pub. L. 98-181, Sec. 512(c)(3), (4), struck 
out par. (2) which related to rates of interest on loans and 
redesignated pars. (3) to (5) as (2) to (4), respectively.
    Subsec. (b)(5). Pub. L. 98-181, Sec. 512(c)(4), redesignated par. 
(6) as (5). Former par. (5) redesignated (4).
    Pub. L. 98-181, Sec. 511(b), substituted ``September 30, 1985'' for 
``November 30, 1983''.
    Pub. L. 98-109 substituted ``November 30, 1983'' for ``September 30, 
1983''.
    Pub. L. 98-35 substituted ``September 30, 1983'' for ``May 20, 
1983''.
    Subsec. (b)(6), (7). Pub. L. 98-181, Sec. 512(c)(4), redesignated 
par. (7) as (6). Former par. (6) redesignated (5).
    Pub. L. 98-181, Sec. 512(b), added par. (7).
    Subsec. (c). Pub. L. 98-181, Sec. 512(d), inserted provisions 
relating to detached units, on scattered sites, for cooperative housing.
    Subsec. (d)(1). Pub. L. 98-181, Sec. 512(e), inserted provisions 
relating to applicability to manufactured home rental parks.
    Subsecs. (g) to (p). Pub. L. 98-181, Sec. 512(a), added subsecs. (g) 
to (p).
    1982--Subsec. (b)(5). Pub. L. 97-289 substituted ``May 20, 1983'' 
for ``September 30, 1982''.
    1981--Subsec. (b)(5). Pub. L. 97-35 substituted ``1982'' for 
``1981''.
    1980--Subsec. (a). Pub. L. 96-399, Secs. 503(a), 507(c)(1), inserted 
reference to Indian tribes in provisions preceding par. (1), and added 
par. (4).
    Subsec. (b). Pub. L. 96-399, Secs. 501(b), 503(b), 507(c)(2), 
inserted reference to Indian tribe in provisions preceding par. (1), in 
par. (5) substituted ``September 30, 1981'' for ``October 15, 1980'', 
and added par. (6).
    Pub. L. 96-372 substituted ``October 15, 1980'' for ``September 30, 
1980'' in par. (5).
    Subsec. (f). Pub. L. 96-399, Sec. 502, added subsec. (f).
    1979--Subsec. (b)(5). Pub. L. 96-153 substituted ``September 30, 
1980'' for ``November 30, 1979''.
    Pub. L. 96-105 substituted ``November 30, 1979'' for ``October 31, 
1979''.
    Pub. L. 96-71 substituted ``October 31, 1979'' for ``September 30, 
1979''.
    1978--Subsec. (b)(5). Pub. L. 95-557 substituted ``September 30, 
1979'' for ``October 31, 1978''.
    Pub. L. 95-406 substituted ``October 31, 1978'' for ``September 30, 
1978''.
    1977--Subsec. (a). Pub. L. 95-128, Sec. 507(a)(3), authorized loans 
for housing of handicapped persons or families.
    Subsec. (b). Pub. L. 95-128, Secs. 501(b), 507(a)(3), substituted 
``elderly or handicapped persons or families'' for ``elderly persons and 
elderly families'' in provision preceding par. (1) and ``September 30, 
1978'' for ``September 30, 1977'' in par. (5).
    Pub. L. 95-80 substituted ``September 30, 1977'' for ``July 31, 
1977'' in par. (5).
    Pub. L. 95-60 substituted ``July 31, 1977'' for ``June 30, 1977'' in 
par. (5).
    Subsec. (c). Pub. L. 95-128, Sec. 508(a), provided that specifically 
designed equipment required by elderly or handicapped persons or 
families shall not be considered elaborate or extravagant.
    Subsec. (d)(1). Pub. L. 95-128, Sec. 508(b), defined ``housing'' to 
also mean congregate housing facilities for elderly or handicapped 
persons or families who require some supervision and central services 
but are otherwise able to care for themselves and authorized such 
housing for the handicapped to be utilized in conjunction with 
educational and training facilities.
    Subsec. (d)(3). Pub. L. 95-128, Sec. 508(c), substituted definition 
of ``congregate housing'' for prior definition of ``elderly persons'' as 
persons 62 years of age or over and ``elderly families'' as families the 
head of which (or his spouse) is 62 years of age or over.
    1974--Subsec. (b)(1). Pub. L. 93-383, Sec. 510(a), struck out 
``$750,000 or'' after ``exceed'' and substituted ``less'' for ``least''.
    Subsec. (b)(5). Pub. L. 93-383, Sec. 509(b), substituted ``June 30, 
1977'' for ``October 1, 1974''.
    Subsec. (d)(4). Pub. L. 93-383, Sec. 510(b), inserted provisions 
including initial operating expenses up to 2 per centum of enumerated 
costs and requiring payments to be made to consultants rendering 
services to nonprofit corporations or consumer cooperatives providing 
housing and related facilities to low or moderate income families.
    1973--Subsec. (b)(5). Pub. L. 93-117 substituted ``October 1, 1974'' 
for ``October 1, 1973''.
    1970--Subsec. (b)(1). Pub. L. 91-609 substituted ``$750,000'' for 
``$300,000''.
    1969--Subsec. (b)(5). Pub. L. 91-152 substituted ``October 1, 1973'' 
for ``January 1, 1970''.
    Pub. L. 91-78 substituted ``January 1, 1970'' for ``October 1, 
1969''.
    1966--Subsec. (a). Pub. L. 89-754, Secs. 804(a), 805(a), inserted 
``or other persons and families of low income'' after ``income'' and 
substituted ``rental or cooperative housing'' for ``rental housing'', 
respectively.
    Subsec. (b). Pub. L. 89-754, Sec. 805(a), (b), substituted ``rental 
or cooperative housing'' for ``rental housing'' and inserted ``or other 
persons and families of moderate income'' after ``families'', 
respectively.
    Subsec. (d)(1). Pub. L. 89-754, Sec. 804(b), substituted in the 
definition of ``housing'' the words ``occupants eligible under this 
section,'' for ``elderly persons or elderly families''.
    Subsec. (d)(4). Pub. L. 89-754, Sec. 805(c), defined fees and 
charges as used for purposes of ``development cost'' to include payments 
to qualified consulting organizations or foundations which operate on a 
nonprofit basis and which render services or assistance to nonprofit 
corporations or consumer cooperatives who provide housing and related 
facilities.
    1965--Subsec. (b)(5). Pub. L. 89-117 substituted ``October 1, 1969'' 
for ``September 30, 1965''.
    1964--Subsec. (b). Pub. L. 88-560 substituted ``$300,000'' for 
``$100,000'' in cl. (1), and ``1965'' for ``1964'' in cl. (5).
    Pub. L. 88-340 substituted ``September 30, 1964'' for ``June 30, 
1964'' in cl. (5).


                    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.


                    Effective Date of 1992 Amendment

    Section 708(b) of Pub. L. 102-550 provided that: ``The amendment 
made by subsection (a)(5) [amending this section] shall take effect on 
October 1, 1993, and shall apply to fiscal year 1994 and each fiscal 
year thereafter.''


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section 371 
of Pub. L. 97-35, set out as an Effective Date note under section 3701 
of Title 12, Banks and Banking.


                               Regulations

    Section 707(f)(2) of Pub. L. 102-550 provided that: ``The Secretary 
of Agriculture shall issue any regulations necessary to carry out the 
amendment made by paragraph (1) [amending this section] not later than 
the expiration of the 45-day period beginning on the date of the 
enactment of this Act [Oct. 28, 1992]. Not later than the expiration of 
the 30-day period beginning on the date of the enactment of this Act, 
the Secretary shall submit a copy of any regulations to be issued under 
this subsection to the Congress. The requirements of section 534(d) of 
the Housing Act of 1949 [42 U.S.C. 1490n(d)] and subsections (b) and (c) 
of section 553 of title 5, United States Code, shall apply to any such 
regulations.''

                  Section Referred to in Other Sections

    This section is referred to in sections 1472, 1479, 1480, 1483, 
1486, 1487, 1490a, 1490f, 1490j, 1490l, 1490p-1, 1490p-2, 1490r, 4851b, 
8011, 13664 of this title; title 12 section 1701q-2; title 26 section 
42; title 40 App. section 207.
