86 1 ment in the family's rent will be accomplished as follows: 2 (1) When the public agency makes the first review of the 3 family's income pursuant to such Act (as so amended) 4 which occurs at least one year after the effective date of such 5 amendments, the family's monthly rent will be increased by 6 an amount equal to one-half the additional amount of rent 7 which would then be required pursuant to this Act; and (2) 8 the family's monthly rental charge will be increased to the 9 full amount of the rental charge required under this Act when 10 the public housing agency makes its next review of the 11 family's income. Increases in rentals for such families will be 12 effective the first day of the month immediately following the 13 month in which the public housing agency makes the review 11 of family income. 15 16 17 EXEMPTION OF CERTAIN PROJECTS FROM RENTAL FORMULA SEC. 303. The rental or income contribution provisions 18 of the United States Housing Act of 1937, as amended by 19 section 301 of this Act, shall not preclude (1) the use of 20 special schedules of required payments as approved by the 21 Secretary for participants in mutual help housing projects 22 who contribute labor, land, or materials to the development 23 of such projects, or (2) the continued use of special sched24 ules of required payments as approved by the Secretary for 25 home buyers in occupancy in homeownership opportunity 87 1 projects under lease-purchase type contracts on the effective 5 REPEAL OF SPECIFICATION REQUIREMENTS IN CONSTRUCTION CONTRACTS SEC. 304. Section 815 of the Housing Act of 1954 is 6 repealed. 7 RETROACTIVE EFFECT OF REPEAL OF SECTION 10(j) 8 SEC. 305. Section 206 (c) of the Housing Act of 1961 9 (Public Law 87-70, approved June 30, 1961; 75 Stat. 10 165) is amended by adding at the end thereof the follow11 ing sentence: "The Secretary of Housing and Urban De12 velopment is authorized to agree with a public housing 13 agency to the amendment of any annual contributions con14 tract containing the provision prescribed in section 10(j), so as to delete such provision and waive any rights of the 16 United States accrued or that may accrue under such pro 15 17 vision." 18 AMENDMENT TO NATIONAL BANK ACT 19 SEC. 306. The sixth sentence of paragraph "Seventh" 20 of section 5136 of the Revised Statutes, as amended (12 21 U.S.C. 24), is amended (1) by striking out "1421a (b) of title 42" wher ever it appears and inserting in lieu thereof "6 (f) of the United States Housing Act of 1937"; 88 (2) by striking out "either" immediately before clause (1); (3) by striking out "(which obligations shall have a maturity of not more than eighteen months)" in clause (1); (4) by striking out "or" immediately before clause (2); and (5) by inserting before the colon preceding the first proviso the following: ", or (3) by a pledge of both annual contributions under an annual contributions contract containing the covenant by the Secretary which is authorized by section 6 (f) of the United States Housing Act of 1937, and a loan under an agreement between the local public housing agency and the Secretary in which the public housing agency agrees to borrow from the Secretary, and the Secretary agrees to lend to the public housing agency, prior to the maturity of such obligations, moneys in an amount which (together with any other moneys irrevocably committed under the annual contributions contract to the payment of principal and interest on such obligations) will suffice to provide for the payment when due of all installments of principal and interest on such obligations, which moneys under the terms of such agreement are required to be used for 1 2 3 4 89 the purpose of paying the principal and interest on such obligations at their maturity". AMENDMENT TO LANHAM ACT SEC. 307. Section 606 (b) of the Act of October 14, 5 1940, as amended (42 U.S.C. 1586), is amended by strik6 ing out all of the first sentence which follows the parentheti7 cal phrase and inserting in lieu thereof a period, and by 8 striking out the second sentence. 9 10 11 EFFECTIVE DATE SEC. 308. The provisions of this title shall be effective at such date or dates as the Secretary of Housing and 12 Urban Development shall prescribe, but not later than 13 six months after the the enactment thereof. 14 TITLE IV-FEDERAL MORTGAGE FORECLOSURE 15 16 SHORT TITLE SEC. 401. This title may be cited as the "Federal Mort 17 gage Foreclosure Act". 18 CONGRESSIONAL FINDINGS SEC. 402. The Congress finds (1) that disparate State laws relating to the fore closure of real estate mortgages and deeds of trust have inhibited the free flow of mortgage money to home owners at reasonable rates in many States and regions of the Nation and have burdened Federal programs in 90 volving real estate mortgages made, owned, insured or guaranteed by the United States; (2) that delays in completing real estate foreclosures have increased the risks of vandalism, fire loss, depreciation, damage and waste and that resulting losses have burdened Federal programs involving real estate mortgages; (3) that delays in foreclosure generally and delays in the transfer of title due to redemption periods observed in some States have encouraged the practice known as "equity skimming" with consequent financial loss to the Government, homeowners, and mortgagees generally; (4) that real estate foreclosure costs are excessive in many parts of the Nation and result in higher costs of borrowing generally; (5) that the availability of a uniform, less expensive, and more expeditious foreclosure procedure is required to ameliorate these conditions, and facilitate the sale and resale in nationwide secondary mortgage markets of secured real estate loans made, owned, insured, or guaranteed by the the United States and would remove existing burdens on interstate commerce; (6) that enactment of legislation providing for a less expensive and more expeditious nonjudicial foreclosure procedure will reduce unnecessary litigation in the courts |