(3) Amounts received by the Institute under this section shall be in addition to any amounts which may be appropriated to provide its initial operating capital under subsection (h).

(g) (1) Every department, agency, and establishment of the Federal Government, in carrying out any building or construction, or any building- or construction-related programs, which involves direct expenditures, and in developing technical requirements for any such building or construction, shall be encouraged to accept the technical findings of the Institute, or any nationally recognized performance criteria, standards, and other technical provisions for building regulations brought about by the Institute, which may be applicable.

(2) All projects and programs involving Federal assistance in the form of loans, grants, guarantees, insurance, or technical aid, or in any other form, shall be encouraged to accept, use, and comply with any of the technical findings of the Institute, or any nationally recognized performance criteria, standards, and other technical provisions for building codes and other regulations brought about by the Institute, which may be applicable to the purposes for which the assistance is to be used.

(3) Every department, agency, and establishment of the Federal Government having responsibility for building or construction, or for building- or construction-related programs, is authorized and encouraged to request authorization and appropriations for grants to the Institute for its general support, and is authorized to contract with and accept contracts from the Institute for specific services where deemed appropriate by the responsible Federal official involved.

1

(4) The Institute shall establish and carry on a specific and continuing program of cooperation with the States and their political subdivisions designed to encourage their acceptance of its technical findings and of nationally recognized performance criteria, standards, and other technical provisions for building regulations brought about by the Institute. Such program shall include (A) efforts to encourage any changes in existing State and local law to utilize or embody such findings and regulatory provisions; and (B) assistance to States in the development of inservice training programs for building officials, and in the establishment of fully staffed and qualified State technical agencies to advise local officials on questions of technical interpretation. (h) There is authorized to be appropriated to the Institute not to exceed $5,000,000 for the fiscal year 1975, and $5,000,000 for the fiscal year 1976, and $5,000,000 for each of the fiscal years 1977 and 1978 2 (with each appropriation to be available until expended), to provide the Institute with initial capital adequate for the exercise of its functions and responsibilities during such years; and thereafter the Institute shall be financially self-sustaining through the means described in subsection (f).

(i) The Institute shall submit an annual report for the preceding fiscal year to the President for transmittal to the Congress within sixty days of its receipt. The report shall include a comprehensive and detailed report of the Institute's operations, activities, financial condition, and accomplishments under this section and may include such recommendations as the Institute deems appropriate.

1 Editorial change from word "and", as in original, to "of".

2 Sec. 24 of the Housing Authorization Act of 1976, Public Law 94-375. approved August 3, 1976, 90 Stat. 1067, amended section 809 (h) of the Housing and Community Development Act of 1974, by inserting immediately after "fiscal year 1976" the following: ", and $5,000,000 for each of the fiscal years 1977 and 1978".

§ 1

NATIONAL HOUSING ACT

[Public Law 479, 73d Congress, 48 Stat. 1246, 12 U.S.C. 1701 et seq.]

AN ACT To encourage improvement in housing standards and conditions, to provide a system of mutual mortgage insurance, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "National Housing Act."

TITLE I-HOUSING RENOVATION AND

MODERNIZATION

ADMINISTRATIVE PROVISIONS 1

SECTION 1. The powers conferred by this Act shall be exercised by the Secretary of Housing and Urban Development (hereinafter referred to as the "Secretary").

In order to carry out the provisions of this title and titles II, III, V, VI, VII, VIII, IX, X, and XI, the Secretary may establish such agencies, accept and utilize such voluntary and uncompensated services, utilize such Federal officers and employees, and, with the consent of the State, such State and local officers and employees, and appoint such other officers and employees as he may find necessary, and may prescribe their authorities, duties and responsibilities. The Secretary may delegate any of the functions and powers conferred upon him under this title and titles II, III, V, VI, VII, VIII, IX, X, and XI, to such officers, agents, and employees as he may designate or appoint and may make such expenditures (including expenditures for personal services and rent at the seat of government and elsewhere for law books and books of reference, and for paper, printing, and binding) as are necessary to carry out the provisions of this title and titles

1 Sec. 1(b) of Public Law 90-19, approved May 25, 1967, 81 Stat. 17, substituted this heading for "Creation of Federal Housing Administration."

2 Sec. 1 of Public Law 90-19, approved May 25, 1967, 81 Stat. 18, amended this sentence to read as set forth in the text. Prior to this amendment the sentence read as follows: "The President is authorized to create a Federal Housing Administration, all of the powers of which shall be exercised by a Federal Housing Commissioner (hereinafter referred to as the 'Commissioner'), who shall be appointed by the President, by and with the advice and consent of the Senate."

The Department of Housing and Urban Development Act, Public Law 89-174, effective November 9, 1965, 79 Stat. 667, established the Department of Housing and Urban Development and provided in sec. 4(a) that "There shall be in the Department a Federal Housing Commissioner, who shall be one of the Assistant Secretaries, who shall head a Federal Housing Administration within the Department, who shall have such duties and powers as may be prescribed by the Secretary, and who shall administer, under the supervision and direction of the Secretary, departmental programs relating to the private mortgage market." Sec. 5(a) of that act transferred to and vested in the Secretary of Housing and Urban Development all of the functions, powers and duties of the Federal Housing Administration and of the heads and other officers and offices of that Administration.

Sec. 1 of Public Law 90-19, amended all provisions in the National Housing Act with respect to its administration to reflect this transfer. The changes are too numerous to be noted by separate footnotes.

81-793 - 77-10

II, III, V, VI, VII, VIII, IX, X, and XI without regard to any other provisions of law governing the expenditure of public funds. All such compensation, expenses, and allowances shall be paid out of funds made available by this Act: Provided, That, notwithstanding any other provisions of law except provisions of law hereafter enacted expressly in limitation hereof, all expenses of the Department of Housing and Urban Development in connection with the examination and insurance of loans or investments under any title of this Act, all properly capitalized expenditures, and other necessary expenses not attributable to general overhead in accordance with generally accepted accounting principles shall be considered nonadministrative and payable from funds made available by this Act, except that, unless made pursuant to specific authorization by the Congress therefor, expenditures made in any fiscal year pursuant to this proviso, other than the payment of insurance claims and other than expenditures (including services on a contract or fee basis, but not including other personal services) in connection with the acquisition, protection, completion, operation, maintenance, improvement, or disposition of real or personal property of the Department acquired under authority of this Act, shall not exceed 35 per centum of the income received by the Department of Housing and Urban Development from premiums and fees during the preceding fiscal year. The Secretary shall, in carrying out the provisions of this title and titles II, III, V, VI, VII, VIII, IX, X, and XI be authorized, in his official capacity to sue and be sued in any court of competent jurisdiction, State or Federal.

INSURANCE OF FINANCIAL INSTITUTIONS

SEC. 2. (a) The Secretary is authorized and empowered upon such terms and conditions as he may prescribe, to insure banks, trust companies, personal finance companies, mortgage companies, building and loan associations, installment lending companies, and other such financial institutions, which the Secretary finds to be qualified by experience or facilities and approves as eligible for credit insurance, against losses which they may sustain as a result of loans and advances of credit, and purchases of obligations representing loans and advances of credit, made by them on and after July 1, 1939, and prior to June 30, 1977,1 for the purpose of (i) financing alterations, repairs, and improvements upon or in connection with existing structures. or

1 Sec. 202(a), Housing and Urban Development Act of 1965, Public Law 89-117, approved August 10, 1965, 79 Stat. 451, 465, substituted "October 1, 1969," for "October 1, 1965," sec. 2(a) of Public Law 91-78, approved September 30, 1969, 83 Stat. 125, substituted "January 1, 1970" for "October 1, 1969,"; sec. 101(a), Housing and Urban Development Act of 1969, Public Law 91-152, approved December 2, 1969, 83 Stat. 379, substituted "October 1, 1970," for "January 1, 1970": Sec. 1(a) of Public Law 91-432, approved October 2, 1970. 84 Stat. 886, substituted "November 1, 1970" for "October 1, 1970"; Sec. 1(a) of Public Law 91-473, approved October 21, 1970, 84 Stat. 1064, substituted "December 1, 1970" for "November 1, 1970"; Sec. 1(a) of Public Law 91-525, approved December 1, 1970, 84 Stat. 1384, substituted "January 1, 1971" for "December 1, 1970"; and sec. 101 (a), Housing and Urban Development Act of 1970, Public Law 91-609, approved December 31. 1970, 84 Stat. 1770, substituted "October 1. 1972" for "January 1. 1971". Sec. 1(a) of Public Law 92-503, approved October 18, 1972, 86 Stat. 906, substituted "June 30, 1973" for "October 1, 1972". Sec. 1(a) of Public Law 93-85, approved August 10, 1973, 87 Stat. 220, substituted "October 1, 1973" for "June 30, 1973". Sec. 1(a) of Public Law 93-117. approved October 2. 1973, 87 Stat. 421, substituted "October 1, 1974" for "October 1, 1973". Sec. 316(a) of Housing and Community Development Act of 1974. Public Law 93-383, 88 Stat. 633, approved August 22, 1974, substituted "June 30, 1977" for "October 1, 1974".

mobile homes1 and the building of new structures, upon urban, suburban, or rural real property (including the restoration, rehabilitation, rebuilding, and replacement of such improvements which have been damaged or destroyed by earthquake, conflagration, tornado, hurricane, cyclone, flood, or other catastrophe), by the owners thereof or by lessees of such real property under a lease expiring not less than six months after the maturity of the loan or advance of credit; and 2 for the purpose of (ii) financing the purchase of a mobile home to be used by the owner as his principal residence or financing the purchase of a lot on which to place such home and paying expenses reasonably necessary for the appropriate preparation of such lot, including the installation of utility connections, sanitary facilities, and paving, and the construction of a suitable pad, or financing only the acquisition of such a lot either with or without such preparation by an owner of a mobile home; 3 and for the purpose of financing the preservation of historic structures, and, as used in this section, the term "historic structures" means residential structures which are registered in the National Register of Historic Places or which are certified by the Secretary of the Interior to conform to National Register criteria; and the term "preservation" means restoration or rehabilitation undertaken for such purposes as are approved by the Secretary in regulations issued by him, after consulting with the Secretary of the Interior.*

In no case shall the insurance granted by the Secretary under this section to any such financial institution on loans, advances of credit, and purchases made by such financial institution for such purposes on and after July 1, 1939, exceed 10 per centum of the total amount of such loans, advances of credit, and purchases: Provided, That with respect to any loan, advance of credit, or purchase made after the effective date of the Housing Act of 1954, the amount of any claim for loss on any such individual loan, advance of credit, or purchase paid by the Secretary under the provisions of this section to a lending institution shall not exceed 90 per centum of such loss."

8 After the effective date of the Housing Act of 1954,9 (i) the Secretary shall not enter into contracts for insurance pursuant to this

1 Sec. 309 (c) of Housing and Community Development Act of 1974, Public Law 93-383, 88 Stat. 633, approved August 22, 1974, inserted the words "or mobile homes". 2 Sec. 103(c)(2), Housing and Urban Development Act of 1969, Public Law 91-152, approved December 24, 1969, 83 Stat. 379, 380, inserted "; and for the purpose of (11) financing the purchase of a mobile home to be used by the owner as his principal residence". 3 Sec. 309 (b) (2) of Housing and Community Development Act of 1974, Public Law 93-383, 88 Stat. 633, approved August 22, 1974, amended the first sentence of this subsection.

4 Sec. 4(a) (1) of Emergency Home Purchase Assistance Act of 1974, Public Law 93-449, 88 Stat. 1364, approved October 18, 1974, amended the first sentence of this section.

5 This proviso added by sec. 101(a), Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590.

6 Sec. 101 (b), Housing Act of 1954, Public Law 560. 83d Congress, approved August 2, 1954, 68 Stat. 590, provided that as used in this section 2(a) the "effective date of the Housing Act of 1954" should mean "the first day after the first full calendar month following the date of approval of the Housing Act of 1954" (August 2, 1954).

7 Sec. 2(a) of Public Law 86-788, approved September 14. 1960, 74 Stat. 1027, 1028. deleted the last sentence of subsection (a) which read: "The aggregate amount of all loans, advances of credit, and obligations purchased, exclusive of financing charges, with respect to which insurance may be heretofore or hereafter granted under this section and outstanding at any one time shall not exceed $1,750,000,000.

8 This paragraph added by sec. 101 (a) of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590.

Sec. 101 (b) of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2. 1954, 68 Stat. 590, provided that as used in this section 2(a) the "effective date of the Housing Act of 1954" should mean "the first day after the first full calendar month following the date of approval of the Housing Act of 1954" (August 2, 1954).