Bill summaries are authored by CRS.

Shown Here:
Indefinitely postponed in Senate (06/07/1977)

(Measure indefinitely postponed in Senate, H.R. 6655 passed in lieu)

Housing and Community Development Act - =Title I: Community Development= - Amends the Housing and Community Development Act of 1974 to define additional terms, including "age of housing" and "extent of growth lag." Authorizes funds to be appropriated for the purpose of making grants to States and units of local governments to help finance community development programs, not to exceed: $3,500,000,000 for fiscal year 1978, $3,650,000,000 for fiscal year 1979, and $3,800,000,000 for fiscal year 1980. Limits amounts of appropriated funds which may be used to aid metropolitan cities, urban counties, and other units of local government within metropolitan areas to meet their hold-harmless needs.

Authorizes funds not to exceed $400,000,000 to be appropriated for each of fiscal years 1978, 1979, and 1980 for the purpose of assisting severely distressed cities that requires supplemental grant assistance in order to alleviate excessive deterioration through neighborhood reclamation and community revitalization.

Directs the Secretary of Housing and Urban Development to permit recipients to establish, with allocated funds, rehabilitation loan funds to finance rehabilitation activities that are a part of the recipients' community development program.

Changes specified application and review requirements for such grants.

Includes among activities eligible for assistance under this Act: (1) the financing of public or private acquisition for purposes of rehabilitation; (2) activities carried out by public or private nonprofit entities which are necessary or appropriate to meeting the needs and objectives of approved community development plans; and (3) Minority Enterprise Small Business Investment Companies.

Provides that no city's community development grant may be reduced by more than 20 percent in any one year.

Sets forth the formula which the Secretary of Housing and Urban Development must follow in order to determine the amount to be allocated to each metropolitan city and urban county and the distribution of remaining funds.

Extends, by three years, the period during which funds will be reserved for use by the Secretary to make grants at his discretion. Increases, by one percent, the amount of funds to be reserved from the total amount appropriated for Community Development Programs.

Permits the Secretary to guarantee loans for acquisition of property with respect to grants to States and units of local government to help finance Community Development Programs.

Authorizes the Secretary to make urban development action grants to severely distressed cities to help alleviate physical and economic deterioration through community revitalization in areas of population out-migration or stagnating or declining tax base. Reserves urban development action grants only to those cities that have demonstrated results in providing housing for persons of low- and moderate-income and in providing equal opportunity in housing and employment for low- and moderate-income persons and members of minority groups. Lists information to be included in applications for such grants, including a description of a concentrated urban development action program. Directs the Secretary to establish criteria to be followed in selecting cities to be recipients of such grants. Requires annual reviews and audits of grant recipients.

Stipulates that at least 25 percent of the funds available for grants under the urban development action grant program be used for certain cities of less than 50,000 population.

Amends the Housing Act of 1964 to extend the rehabilitation loan program through fiscal year 1979. Authorizes $60,000,000 to be appropriated for fiscal year 1978.

Authorizes appropriations for fiscal year 1978 for comprehensive planning under the Housing Act of 1954.

Provides for (1) an examination, in the President's urban growth report, of the housing and community development problems of cities undergoing a rapid growth rate; (2) a report, to be transmitted to Congress by March 1, 1978, by the Secretary on the fiscal crisis confronting urban areas, and (3) a task force, chaired by the Secretary, on the needs of small cities.

=Title II: Housing Assistance and Related Programs= - Amends the United States Housing Act of 1937 to increase the limit on funds that are authorized to be appropriated for contracts for annual contributions to low- income housing projects in 1977. Sets forth the limitation on funds authorized to be appropriated for the purpose of providing annual contributions for the operation of such projects. Makes provisions of the assumption of maintenance responsibilities of existing dwelling units.

Directs the Secretary of conduct a study of payments in lieu of taxes with respect to housing projects under the United States Housing Act of 1937 and to report to Congress on the adequacy of such payments.

Amends the Housing Act of 1959 to redefine the term "development cost" with respect to loans for housing for elderly and handicapped families.

Directs the Secretary to assure that availability funds for specified local housing assistance plans be allocated or reserved in accordance with goals described in local, state, or other approved housing plans.

Amends the National Flood Insurance Act of 1968 to extend the national flood insurance program until September 30, 1978.

Amends the Housing and Community Development Act of 1974 to extend the Urban Homesteading program for one year.

=Title III: Mortgage Credit= - Amends the National Housing Act to extend specified Federal Housing Administration insurance programs including the following: (1) housing renovation and modernization; (2) general insurance authorization; (3) housing for moderate income and displaced families; (4) rental housing for low-income families; (5) coinsurance of mortgages; (6) experimental housing; (7) armed services housing; (8) group practice facilities and medical practice facilities; and (9) new communities.

Extends the authority of the Secretary of Housing and Urban Development to grant flexible interest rates for specified mortgage insurance programs.

Amends the National Housing Act to increase the maximum mortgage amounts under the Federal Housing Administration's multifamily mortgage insurance programs including the homeownership program.

Changes the eligibility requirements for mortgage insurance under the National Housing Act by decreasing downpayment requirements. Permits the Secretary to increase mortgage insurance premiums for cooperative housing projects. Extends additional assistance payments for low-income rental projects.

Extends additional assistance payments low-income rental projects. Permits the Secretary of Housing and Urban Development to insure on a permanent basis, mortgages and loans with provisions of varying rates of amortization. States that the principal obligation of such mortgages insured may not exceed 97 percent of the appraised value of the property covered by the mortgage. Exempts such insured mortgages from State laws limiting the amount of interest which may be charged.

Authorizes the Secretary to require the Government National Mortgage Association to utilize a part of its authority to purchase mortgages in order to promote homeownership opportunities for low- and moderate-income families, and rehabilitation or acquisition and rehabilitation of housing in older or declining neighborhoods.

Directs the Secretary to publish annually prototype housing costs for one to four family dwelling units for each housing market area in the United States.

Amends the Home Owner's Loan Act to extend the lending authority of savings and loan associations.

Amends the Federal Flood Insurance Act so as to allow a community which, for compelling reasons, does not adopt the HUD land use code, to continue to have access to conventional financing.

Permits the Secretary to provide mortgage insurance in defense impact regions where private developers have been unable to provide adequate low- and moderate-income housing.

=Title IV: Community Reinvestment= - Community Reinvestment Act - States that the purpose of this Act is to require each appropriate Federal financial supervisory agency to use its authority, when examining financial institutions, to encourage such institutions to help meet the credit needs of the local communities in which they are chartered.

Directs each Federal financial supervisory agency in examining financial institutions: (1) to assess the institution's record of meeting the financial needs of its primary savings, service area; and (2) to take such record into account in evaluating the institution's application for a deposit facility.

Directs such supervisory agencies to report the results of such evaluations to Congress annually.

=Title V: Rural Housing= - Authorizes appropriations for specified rural housing programs. Amends the Housing Act of 1949 to make changes in the guaranteed housing loan program.

Authorizes prepayment of taxes and insurance by Farmers Home Administration borrowers without requiring that such funds be held in escrow.

Authorizes the Secretary of Agriculture to make expenditures from the Rural Housing Insurance Fund in order to correct construction defects or to pay claims of the owner of property arising from such defects.

Redefines the term "domestic farm labor" for purposes of farm housing loans and grants to include specified laborers in Puerto Rico and the Virgin Islands.

Sets forth eligibility requirements for farm housing assistance for elderly or handicapped persons or families.

Extends the program for rural housing loan for elderly and handicapped families to include congregate housing facilities for families who require some supervision and central services.

Requires that at least 60 percent of insured rural housing loans shall benefit persons of low income.

Authorizes the Farmers Home Administration to undertake rural housing research with any public or private body.

Makes it mandatory for the Secretary of Agriculture to provide rural rental assistance.

Provides that foreclosed property held by the Secretary of Agriculture be subject to legitimate state and local taxes.

Amends the National Flood Insurance Act to: (1) increase the ceilings on flood insurance coverage for residential and small business properties; (2) revise the negotiated purchase section of the Act; (3) provide low interest loans to facilitate floodway reconstruction in compliance with Federal standards; and (4) provide Federal reimbursement for costs of appeals of wrongful inclusion in a floodway.

=Title VI: Indian and Alaska Native Community Development = - Indian and Alaska Native Community Development Act - Establishes, within the Department of HUD, an Office of Indian and Alaska Native Programs to deliver housing and community development programs affecting Indians and Alaskan natives.