
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: 42USC1587]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
        CHAPTER 9--HOUSING OF PERSONS ENGAGED IN NATIONAL DEFENSE
 
          SUBCHAPTER VII--DISPOSAL OF WAR AND VETERANS' HOUSING
 
Sec. 1587. Disposition of other permanent war housing


(a) Public interest

    The Secretary of Housing and Urban Development shall, subject to the 
provisions of this section, dispose of permanent war housing, other than 
housing conveyed pursuant to section 1586 of this title, as promptly as 
practicable and in the public interest.

(b) Preference in sales to individuals

    Preference in the purchase of any dwelling structure designed for 
occupancy by not more than four families and offered for separate sale 
shall be granted to occupants and to veterans over other prospective 
purchasers for such period as the Secretary of Housing and Urban 
Development may determine and in the following order:
        (1) a veteran who occupies a unit in the dwelling structure to 
    be sold and who intends to continue to occupy such unit;
        (2) a nonveteran who occupies a unit in the dwelling structure 
    to be sold and who intends to continue to occupy such unit;
        (3) a veteran who intends to occupy a unit in the dwelling 
    structure to be sold.

    Subject to the above order of preference, the Secretary of Housing 
and Urban Development may establish subordinate preferences for any such 
dwelling structure. In the disposition of any dwellings under this 
section which were acquired by the United States from persons occupying 
the dwellings at the time of such acquisition, the Secretary of Housing 
and Urban Development may, notwithstanding the order of preference 
provided in this section, grant a first preference to such persons in 
the purchase of any of these dwellings for such period and under such 
conditions as the Secretary may determine to be appropriate and in the 
public interest. As used in this subsection, the term ``veteran'' shall 
include a veteran, a serviceman, or the family of a veteran or a 
serviceman, or the family of a deceased veteran or serviceman whose 
death has been determined by the Secretary of Veterans Affairs to be 
service-connected.

(c) Preference in sales of projects

    In the case of any housing project required by this section to be 
disposed of, which is not offered for separate sale of separate dwelling 
structures designed for occupancy by not more than four families, such 
project may be sold as a whole or in such portions as the Secretary of 
Housing and Urban Development may determine. On such sales of an entire 
project or portions thereof consisting of more than one dwelling 
structure or of an individual dwelling structure designed for occupancy 
by more than four families, first preference shall be given for such 
period not less than ninety days nor more than six months from the date 
of the initial offering of such project or portions thereof as the 
Secretary of Housing and Urban Development may determine, to groups of 
veterans organized on a mutual ownership or cooperative basis (provided 
that any such group shall accept as a member of its organization, on the 
same terms, subject to the same conditions, and with the same privileges 
and responsibilities, required of, and extended to other members of the 
group any tenant occupying a dwelling unit in such project, portion 
thereof or building, at any time during such period as the Secretary of 
Housing and Urban Development shall deem appropriate, starting on the 
date of the announcement by the Secretary of Housing and Urban 
Development of the availability of such project, portion thereof or 
building for sale), except that a first preference for said period of 
not less than ninety days nor more than six months shall be given to any 
group organized on a mutual or cooperative basis, which, with respect to 
its proposed purchase of a specific housing project or portions thereof, 
has, prior to August 1, 1949, been granted an exception by the Secretary 
of Housing and Urban Development from the sales preference provisions of 
Public Regulation 1 of the Housing and Home Finance Agency and has been 
designated as a preferred purchaser.

(d) Equitable selection method for each preference class

    The Secretary of Housing and Urban Development shall provide an 
equitable method of selecting the purchasers to apply when preferred 
purchasers (or groups of preferred purchasers) in the same preference 
class or containing members in the same preference class compete with 
each other.

(e) Veterans' preference

    Any housing disposed of in accordance with this section shall after 
such disposal be deemed to be housing accommodations the construction of 
which was completed after June 30, 1947, within the meaning of section 
1884 of Appendix to title 50, relating to preference or priority to 
veterans of World War II or their families.

(f) Terms of sales

    Sales pursuant to this section shall be upon such terms as the 
Secretary of Housing and Urban Development shall determine: Provided, 
That full payment to the Government for the property sold shall be 
required within a period not exceeding twenty-five years with interest 
on unpaid balances at not less than 4 per centum per annum, except that 
in the case of projects initially programmed as mutual housing 
communities under the defense housing program, the terms of sale shall 
not require a down payment and shall provide for full payment to the 
United States over a period of forty-five years with interest on unpaid 
balances at not more than 3 per centum per annum.

(g) Disregard of preferences in certain cases

    The Secretary of Housing and Urban Development may dispose of any 
permanent war housing without regard to the preferences in subsections 
(b) and (c) of this section when the Secretary determines that (1) such 
housing, because of design or lack of amenities, is unsuitable for 
family dwelling use, or (2) it is being used at the time of disposition 
for other than dwelling purposes, or (3) it was offered, with 
preferences substantially similar to those provided in the Housing Act 
of 1950, to veterans and occupants prior to April 20, 1950.

(Oct. 14, 1940, ch. 862, title VI, Sec. 607, as added June 28, 1948, ch. 
688, Sec. 7, as added Apr. 20, 1950, ch. 94, title II, Sec. 201, 64 
Stat. 59; amended Mar. 10, 1954, ch. 61, 68 Stat. 26; Aug. 2, 1954, ch. 
649, title VIII, Sec. 805(2), 68 Stat. 644; Pub. L. 89-174, Sec. 5(a), 
Sept. 9, 1965, 79 Stat. 669; Pub. L. 102-54, Sec. 13(q)(6)(B), June 13, 
1991, 105 Stat. 281.)

                       References in Text

    The Housing Act of 1950, referred to in subsec. (g), is act Apr. 20, 
1950, ch. 94, 64 Stat. 48, as amended. For complete classification of 
this Act to the Code, see Short Title of 1950 Amendment note set out 
under section 1701 of Title 12, Banks and Banking, and Tables.


                               Amendments

    1991--Subsec. (b). Pub. L. 102-54 substituted ``Secretary of 
Veterans Affairs'' for ``Veterans' Administration'' in last sentence.
    1954--Subsec. (b). Act Mar. 10, 1954, in last paragraph, inserted 
sentence permitting Administrator to give, in the disposition of 
dwellings under this section which were acquired by the United States 
from persons occupying the dwellings at the time of such acquisition, a 
first preference to such persons in the purchase thereof.
    Subsec. (g). Act Aug. 2, 1954, added subsec. (g).

                          Transfer of Functions

    For transfer of functions to Secretary of Housing and Urban 
Development, see note set out under section 1581 of this title.


                            Cross References

    Extension of dates for disposal and other actions relating to 
housing under this chapter, see section 1589a of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 1589d of this title.
