Bill summaries are authored by CRS.

Shown Here:
Passed House amended (07/13/1983)

(Measure passed House, amended, roll call #247 (263-158))

Housing and Urban-Rural Recovery Act of 1983 - Title I: Community and Neighborhood Development and Conservation - Amends the Housing and Community Development Act of 1974 to require that not less than 51 percent of the assistance provided under the community development block grant (CDBG) program be used to support activities that benefit persons of low and moderate income. Amends the definitions of a "metropolitan city" and an "urban county" for purposes of such program by revising population requirements. Defines "low and moderate income" as family income not exceeding 80 percent of the median income of the metropolitan city, urban area, or nonentitlement area involved. Provides that any metropolitan city that qualified for assistance under such program in FY 1983 because it was defined as a central city of a metropolitan area shall continue to qualify for such assistance for FY 1984 and each succeeding fiscal year if it utilizes 75 percent of such assistance received for FY 1982 and each succeeding fiscal year in areas, or on projects, directly benefiting persons of low and moderate income. Authorizes appropriations for such program for FY 1984 through 1986.

Prohibits the Secretary of Housing and Urban Development from awarding a grant under such program to any metropolitan city or urban county unless the applicant certifies that: (1) it has developed a three-year community development plan that identifies community development and housing needs, a comprehensive strategy for meeting such needs, and short and long-term community development objectives; (2) it has formulated a program that describes activities to be undertaken to meet community development needs and objectives, indicates resources expected to be provided from other sources for such activities, needs, and objectives, and specifies a plan to minimize the displacement of persons as a result of such activities and to assist persons who are displaced; (3) it will administer its program in conformity with civil rights laws and will affirmatively further fair housing opportunities; (4) prior to submission of its application, it has prepared and followed a written citizen participation plan in the development of its program and application, notified citizens of the amount of funds available for housing and community development activities and of the range of proposed activities, and held public hearings on housing and community development needs; (5) it will provide citizens with reasonable access to records of an applicant's use of funds and reasonable notice of any substantial proposed change in the use of funds; (6) it will not attempt to recover any capital costs of public improvements financed by CDBG funds by charging any fee against properties owned by persons of low and moderate income, unless such funds are used to pay the proportion of such fee that relates to capital costs financed from other revenue sources; and (7) it will comply with all applicable laws.

Prohibits the Secretary from awarding a grant to a State for nonentitlement areas unless the applicant meets the certification requirements for metropolitan cities and urban counties, with a specified exception, and certifies that it has: (1) consulted with local governments in nonentitlement areas in developing its community development plan and its procedure for allocating CDBG funds; and (2) developed a competitive process for selecting applications for assistance from such local governments under which an application may not be denied on the basis of the particular eligible activity selected by such local government to meet its community development needs.

Prohibits a State or the Secretary from distributing any CDBG funds to any local government in a nonentitlement area unless the applicant meets specified certification requirements prescribed for a metropolitan city or urban county and certifies that: (1) it will utilize such funds to offset amounts charged against properties of low and moderate income persons for capital costs of public improvements in water, sewage, or air quality systems; (2) it will determine the amount of such offset on the basis of the person's ability to pay; and (3) it has developed a statement that identifies its community development and housing needs, includes a strategy for meeting such needs, and includes planned activities to meet such needs with estimates of the costs of such activities and the extent to which they will benefit persons of low and moderate income.

Limits to ten percent of any CDBG the amount of funds that may be used for unspecified local option activities.

Prohibits the allocation or distribution of CDBG funds by the Secretary or any State unless the applicant involved certifies that not less than 51 percent of the assistance received shall be used for the support of activities that benefit persons of low and moderate income.

Requires that the housing assistance plan of a local government receiving CDBG funds include the number of vacant and abandoned dwelling units to be upgraded and preserved.

Requires each State, metropolitan city, urban county, and nonentitlement area receiving CDBG funds to submit an annual performance report on its housing and community development activities to the Secretary or the State, as appropriate. Requires that such report include: (1) an assessment of the relationship of such activities to CDBG program objectives, the entity's certification requirements, the entity's community development and housing needs and objectives, and achievement of the goals of an entity's housing assistance plan; (2) in the case of a local government, an assessment of the benefits provided to low and moderate income persons as a result of such activities, on a project by project basis; and (3) any citizen comments received. Directs the Secretary to prescribe a standard form for such reports. Requires the Secretary to: (1) conduct such reviews and audits as are necessary to determine if nonentitlement areas have satisfied performance criteria; and (2) require each State and local government receiving CDBG funds to maintain such records as necessary to enable the Secretary and States to conduct adequate performance reviews.

Authorizes a local government receiving CDBG funds to request and receive funds for certain projects in one lump-sum payment. Requires that any interest accrued on such payment be expended on such project.

Allows any local government to retain any program income that is realized from any CDBG made by the Secretary or a State if such income is realized after the initial disbursement of CDBG funds and such government has agreed to use such income for eligible community development activities. Permits a State to: (1) make a grant to a local government on the condition that such government pay any such income to the State to be used for additional eligible community development activities; and (2) waive such condition to the extent such income is applied to continue the local government's activity.

Provides that CDBG funds made available to a local government shall be considered to be financial assistance for the purposes of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. Entitles persons displaced by an activity carried out with such funds to assistance from the local government as provided under such Act.

Permits local governments to: (1) use up to 20 percent of CDBG assistance for the provision of public services; or (2) match any higher percentage of such assistance used for such purpose in FY 1981, 1982, or 1983.

Includes as an activity that is eligible for CDBG funding the development of shared housing opportunities by neighborhood-based nonprofit organizations or other private or public nonprofit organizations.

Requires that any acquisition, construction, or rehabilitation activity of a public or private non-profit entity and any economic development activity of a for-profit entity that is identified by a CDBG applicant as predominately benefiting persons of low and moderate income: (1) be conducted in a neighborhood consisting predominantly of such persons and provide essential services to such persons; (2) involve facilities designed for use predominately by such persons; or (3) involve employment of individuals, the majority of whom are persons of low and moderate income.

Sets forth criteria for determining the extent to which certain activities benefit persons of low and moderate income. Prohibits providing CDBG funds for any project intended to relocate any industrial or commercial facility unless the Secretary determines that the relocation will not significantly and adversely affect the unemployment or economic base of the area from which the facility is to be relocated.

Authorizes the Secretary to reallocate to any metropolitan city any CDBG funds that were allocated to, but not received by, an urban county and earmarked for such city prior to its qualification as a metropolitan city, if such city and county agree to such reallocation of funds and the transfer of responsibility for the administration of such funds.

Sets aside a specified amount of the funds authorized for the CDBG program for the Secretary's special discretionary fund for FY 1984 through 1986. Authorizes the Secretary to allocate amounts from such fund to any State or local government that is determined by the Secretary to have received insufficient amounts under a CDBG because of a miscalculation. Requires the Secretary to provide a specified amount of such fund for grants: (1) to institutions of higher education for continuing programs in effect during FY 1983 for providing assistance to economically disadvantaged and minority students who participate in community development work study programs; and (2) in behalf of new communities.

Authorizes additional appropriations for FY 1984 for grants by the Secretary to States, local governments, and Indian tribes for the provision of shelter and essential services for persons who are subject to life-threatening situations because of their lack of housing.

Directs the Secretary to enter into commitments during FY 1984 to guarantee notes and obligations of a specified aggregate amount issued by local governments to finance the acquisition or rehabilitation of real property. Prohibits the Secretary from guaranteeing such a note or obligation unless the issuer certifies that: (1) at least 51 percent of the amounts received through the issuance of such note or obligation will be used to support activities that benefit persons of low and moderate income; (2) it will not attempt to recover any capital costs of public improvements assisted with amounts received from such note or obligation by charging any fee against properties owned by persons of low and moderate income, unless such amounts or CDBG funds are used to pay the portion of such fee that relates to the capital costs financed from other revenue sources; (3) it will use amounts received from such note or obligation or CDBG funds to offset amounts charged against properties of such persons for capital costs of public improvements required to comply with Federal and State water, sewage, or air quality standards; and (4) it will determine the amount of such offset on the basis of a person's ability to pay.

Authorizes appropriations for urban development action grants (UDAGs) for FY 1984 through 1986. Provides that an identifiable unincorporated community of an urban county that meets certain poverty criteria shall qualify for an UDAG.

Requires UDAG applicants to certify for the Secretary that an analysis of the impact of proposed activities on neighborhood residents has been made available to neighborhood-based nonprofit organizations.

Allows the Secretary's criteria for selecting UDAG recipients in FY 1984 to provide for a leveraging ratio of as low as two dollars of private investment for each grant dollar provided to any city that has a population of less than 50,000 and is not a central city of a metropolitan statistical area, if such amounts are to be used for projects involving industrial facilities or providing housing for persons of low and moderate income. Directs the Secretary to assist such cities in evaluating their needs and developing programs to meet such needs upon determining that such assistance would benefit such cities.

Requires the Secretary to allocate amounts available for UDAGs in order to achieve a balance among programs designed to: (1) restore seriously deteriorated neighborhoods; (2) reclaim underutilized real property; and (3) renew commercial employment centers. Prohibits the Secretary from denying UDAG assistance on the basis that such assistance is to be used solely for the provision of housing.

Directs the Secretary to guarantee loans made to nonprofit organizations based in neighborhoods in which activities are funded by UDAGs, if: (1) loan funds are used to finance neighborhood revitalization activities designed to meet housing and related needs of persons of low and moderate income; (2) there is reasonable assurance of repayment of the loan; and (3) financial institutions would not provide the loan without the guarantee. Limits the amount of such loans that may be guaranteed during FY 1984 to an amount equal to ten percent of the amount appropriated for UDAGs.

Directs the Secretary to make grants to assist eligible neighborhood development organizations in conducting neighborhood development activities designed to: (1) create jobs; (2) establish or expand new businesses; (3) develop or rehabilitate neighborhood housing stock; (4) deliver essential services; or (5) plan, promote, or finance voluntary neighborhood improvement efforts. Permits the Secretary to provide up to $50,000 to an organization at a ratio of between three and ten Federal dollars for every dollar received from private sources, depending on the degree of economic distress in relation to the number of households in each neighborhood. Requires an organization to certify that: (1) the private funds will be provided during the period in which the eligible activity will be conducted; and (2) the local government of the neighborhood involved has been notified of, and provided an opportunity to comment on, the grant application. Directs the Secretary to award such grants on the basis of: (1) the degree of economic distress of the neighborhood involved; (2) the extent to which the proposed activities will benefit persons of low and moderate income; and (3) the extent of neighborhood participation in such activities. Directs the Secretary to establish a neighborhood development advisory committee to assist the Secretary in operating and evaluating such grant program. Authorizes appropriations for such program for FY 1984.

Revises the urban homesteading program. Discontinues participation by a State or State-designated agency in such program.

Authorizes the Secretary to: (1) donate property improved by a one- to four-family residence to a local government or a public agency designated by such government for use exclusively in a single-family homesteading program; (2) convey property suitable for a multifamily homesteading program to such government or agency for negotiated consideration; and (3) provide funds to such government or agency for the acquisition of property for use in a single-family or multifamily program.

Requires that a single-family homesteading program provide for: (1) the initial conveyance of property by the government or agency without substantial consideration to a family of low or moderate income (income not exceeding 80 percent of the area median income) upon the condition that the family agrees to repair all dangerous defects in the property within one year; (2) the conveyance of such property to such family without substantial consideration after such defects are repaired if the family agrees to occupy the property for at least five years and to make the improvements necessary to meet local housing standards within three years after the initial conveyance; (3) an equitable procedure for selecting property recipients that excludes current homeowners, considers the capacity of the applicant to contribute labor or obtain other assistance, and gives a priority to applicants who pay more than 30 percent of their income for substandard housing and who have little prospect for obtaining improved housing otherwise; and (4) the provision of technical and rehabilitation assistance to property recipients.

Requires that a multifamily homesteading program provide for: (1) primarily residential use of all homestead properties following conversion or rehabilitation; (2) 75 percent occupancy by low- or moderate-income families; (3) cooperative ownership; (4) the exclusion of entities operated for profit as the first owners of converted or rehabilitated properties; (5) the contribution of labor by the occupants; (6) technical and rehabilitation assistance; and (7) minimal displacement of prior occupants.

Authorizes the Secretary to make grants to a local government or agency for the provision of rehabilitation assistance for homestead property recipients. Requires that at least 75 percent of such assistance be allocated to aid families of very low income (income not exceeding 50 percent of the area median income).

Lists the criteria to be used by the Secretary in selecting projects to receive homesteading assistance.

Requires the Secretary of Agriculture, as well as the Administrator of Veterans Affairs and the Secretary of Housing and Urban Development, to comply with the request of a local government or agency of an area for a listing of the vacant residential properties in that area to which the Secretary holds title. Requires that such listings be accessible to the public.

Requires the annual report of the Secretary of Housing and Urban Development to Congress to include an assessment of the extent to which homesteading programs consider the housing need and income of homestead applicants and an estimate of the median income of homestead recipients during the year. Authorizes appropriations for FY 1984 for the urban homesteading program.

Amends the Housing Act of 1964 to limit the amount of appropriations that may be approved for rehabilitation loans for FY 1984. Prohibits the Secretary from establishing: (1) any requirement that a certain portion of such a loan be used for any particular type of dwelling unit; or (2) any priority for receipt of such a loan that is based on an applicant's receipt of other Federal assistance under any program other than the urban homesteading program.

Amends the Neighborhood Reinvestment Corporation Act to authorize appropriations for the Corporation for FY 1984. Directs the Corporation to use a specified amount of such appropriations to conduct a mutual housing demonstration program emphasizing housing rehabilitation.

Declares that any city that has a population of less than 50,000 persons, that is not a central city of a metropolitan area, and that was eligible for an UDAG shall continue to be eligible for an UDAG until the Secretary revises eligibility standards for such cities and includes the extent of unemployment as a standard of distress for such cities.

Title II: Assisted Housing - Part A: Lower Income Housing Programs - Amends the United States Housing Act of 1937 to: (1) increase, on October 1, 1983, the maximum amount of annual contributions which the Secretary may make to public housing agencies for low-income housing projects; (2) limit the amount which may be obligated over the duration of contribution contracts with respect to additional authority provided on October 1, 1983; and (3) earmark specified amounts of such additional authority for homeownership assistance payments, rehabilitation assistance, public housing modernization, rent subsidies, assistance to upgrade public housing projects, amendments to assistance contracts or reservations, the conversion of other housing assistance to rent subsidies, and for public housing receiving assistance other than rent subsidies, including Indian housing. Requires recaptured authority to be used for the construction of housing for elderly and handicapped families and for rent subsidies. Authorizes appropriations for public housing operating assistance for FY 1984.

Declares that income limits for occupancy and rent in public housing shall be fixed by the public housing agency and approved by the Secretary. Limits the amount that a family shall pay as rent for public housing to not more than the highest of: (1) ten percent of the family's monthly income; (2) the portion of the family's welfare assistance designated for housing costs; or (3) 25 (currently 30) percent of the family's monthly adjusted income. Revises the definitions of a family's income and adjusted income to specify amounts to be excluded or deducted, respectively. (Currently such amounts are determined by the Secretary.)

Amends the National Housing Act and the Housing and Urban Development Act of 1965 to adopt such definitions of income and adjusted income. Reduces the tenant's contribution to rent under the rental assistance payment program from 30 to 25 percent of a family's monthly adjusted income. Increases the amount of rental assistance under the rent supplement program from the lesser of 70 percent of the fair market rent or the amount by which such rent exceeds 30 percent of the tenant's adjusted income to the lesser of 70 percent of such rent or the amount by which such rent exceeds 25 percent of the tenant's adjusted income.

Directs the Secretary to limit to ten percent any annual increase in a family's rental payments resulting from any change in Federal law redefining which governmental benefits are to be considered as income.

Amends the United States Housing Act of 1937 to authorize the Secretary to waive the limitation on the percentage of public housing units that may be occupied by single persons who are not 62 years old, disabled, handicapped, displaced, or a remaining member of a tenant family, if a unit is not, and is not likely to be, occupied by a person in one of such categories within 12 months because of the unit's location or condition.

Prohibits the Secretary from recapturing any authority allocated to a public housing agency for public housing development prior to FY 1984 for 24 months after enactment of this Act. Permits such agency to use such authority for comprehensive improvement assistance after consulting its local government. Prohibits the Secretary from establishing any preference based on the types of activities for which comprehensive improvement assistance is requested other than the preferences currently required.

Directs the Secretary to establish, annually revise, and publish reasonable maximum limitations on public housing development costs.

Directs the Secretary to require public housing agencies to: (1) implement an administrative grievance procedure for tenants and applicants; and (2) use leases that do not contain unreasonable terms and conditions, that obligate the agency to maintain the projects in a decent, safe, and sanitary condition, that require the agency to provide specified written notice of termination of the lease, and that prohibit the agency from terminating the lease except for serious or repeated violations or other good cause.

Makes it the responsibility of each public housing agency operating a lower income housing project to establish a procedure for determining the eligibility of, and rent to be paid by, families applying for, or occupying, project units. Authorizes such an agency to require families to provide only information directly related to accomplishing fair housing objectives or determining eligibility, rental payments, or appropriate unit size.

Prohibits the Secretary from: (1) requiring any such family to provide information that duplicates information provided to a public housing agency, except for a survey of a sample population or an audit of the agency's procedures for determining rent and eligibility; or (2) maintaining any record on an applicant or occupant family, unless such record is necessary for an investigation of a specific allegation of fraud by such family.

Establishes as the fair market rental for existing public housing projects the median rent paid for comparable units by tenants who moved into the area within the most recent two-year period for which data is available. Requires the maximum monthly rent to be reasonable compared with unassisted units. Prohibits the rent for an assisted unit from exceeding the rent charged for comparable unassisted units in a project. Requires the Secretary to revise such fair market rentals at least once each year.

Directs the Secretary to offer to renew any assistance contract with a public housing authority for five-year periods in order to extend the total period of assistance to 15 years, if the authority has carried out the terms of the contract. Allows a public housing agency to attach a contract providing assistance payments to an owner of an existing structure to that structure or the tenant. Permits an owner to renew such a contract attached to a structure for up to a total period of 15 years.

Limits to ten percent any annual increase in rent for elderly tenants due to the conversion of certain housing assistance programs.

Prescribes revisions to the standards to be used by the Secretary in determining costs of operations and projections of income for the purpose of calculating amounts of public housing operating subsidies. Requires the Secretary to submit to Congress: (1) an annual report setting forth detailed estimates of the amount of operating assistance required under such standards and any recommendations for modifications to such standards; and (2) by March 1, 1984, a report setting forth recommendations for standards modifications or other regulatory legislative changes for the purpose of providing incentives to public housing agencies to implement management improvements designed to reduce costs and provide for more efficient operation of projects and delivery of services. Provides that a specified rule concerning gross rent in the calculation of such operating subsidies may not be considered to have been effective before a specified date with respect to public housing agencies that were parties to a civil action to enjoin implementation of such rule.

Repeals provisions of the Omnibus Budget Reconciliation Act of 1981 that restrict the percentage of public housing units available to lower income families other than very low-income families. Requires at least 30 percent of the families assisted under the program providing rent subsidies to owners of existing lower income housing projects to be very low-income families.

Establishes conditions governing the demolition, sale, or disposal of public housing projects.

Amends the Housing and Community Development Amendments of 1981 to permit a public housing agency to retain: (1) the greater of its legal expenses in obtaining a judgment or 50 percent of the amount of a judgment obtained in recovering amounts wrongfully paid as a result of fraud or abuse in any housing program (currently one specific program) under the United States Housing Act of 1937; and (2) 50 percent of wrongfully paid amounts recovered by means other than court actions.

Amends the United States Housing Act of 1937 to prohibit the Secretary from imposing a percentage or other arbitrary ceiling on rent or cost increases on certain federally-assisted lower income housing projects.

Requires the Secretary to report to Congress on the status of the program established by the Secretary to provide housing assistance to local governments in areas of concentrated housing and community development activities under the CDBG program.

Declares that utility payments made by persons living in certain federally-assisted low-income housing projects shall be considered to be rental payments for purposes of determining eligibility or the amount of benefits under the Aid to Families with Dependent Children program.

Authorizes the Secretary to provide rental subsidies to housing owners under the United States Housing Act of 1937 for dwelling units without bathrooms and kitchens if the local government in which such unit is located and the local public housing agency certify that the unit complies with local health and safety standards.

Directs the Secretary to conduct a demonstration program of making grants to assist public housing agencies in providing child care services for lower income families which reside in public housing and are headed by a person who is single or separated or whose spouse is elderly, handicapped, or disabled. Requires the Secretary to design such program to determine the extent to which the availability of such a service facilitates the employability of such persons. Lists criteria for awarding such grants, including requirements that a service be designed to involve parents and employ elderly residents of the housing project involved. Directs the Secretary to: (1) award grants to the largest number of lower-income housing projects possible; (2) ensure a reasonable distribution of such grants between rural and urban areas; (3) conduct periodic evaluations of the effectiveness of each program established; and (4) report to Congress within two years on his or her findings, conclusions, and recommendations concerning such program. Authorizes appropriations.

Part B: Other Assisted Housing Programs - Amends the Housing and Community Development Amendments of 1978 to provide that operating assistance shall be available to troubled multifamily housing projects: (1) without regard to whether such projects are insured under the National Housing Act; and (2) that are converted from assistance under the rent supplement and rental assistance payments programs to the rental subsidy program under the United States Housing Act of 1937. Amends the National Housing Act to extend through FY 1984 the period during which the Rental Housing Assistance Fund may be utilized for such assistance.

Requires the Secretary to offer, annually, to amend rental assistance payment contracts under the National Housing Act to provide sufficient payments to cover necessary rent increases and changes in the incomes of tenants, regardless of whether project mortgages are insured under such Act. Directs the Secretary to use authority recaptured as a result of the conversion of such contracts to rental subsidy contracts under the United States Housing Act of 1937 for remaining rental assistance payment contracts.

Amends the Housing Act of 1959 to limit the maximum annual interest rate and administrative allowance charge on loans by the Secretary for the provision of housing for the elderly and handicapped families. Authorizes an increase in the Treasury borrowing authority and establishes a loan limitation for such loan program for FY 1984. Earmarks a specified amount of the funds available for such program for FY 1984 for the development of housing for the handicapped. Requires that not more than 20 percent of such funds be provided for housing for handicapped persons who have been released from residential health treatment facilities.

Permits up to 25 percent of the units financed with such a loan for elderly and handicapped housing to be efficiencies. Authorizes the Secretary to require the sponsor of such a housing project to deposit up to $10,000 in an escrow account to assure the sponsor's commitment and management capabilities. Directs the Secretary to: (1) consider design features for the elderly and handicapped when establishing project unit cost limitations; and (2) adjust such limitations annually to reflect changes in construction costs. Conditions the sale, transfer, or prepayment of any such loan on the assurance that the project involved will continue to operate until the original maturity date on terms at least as advantageous to the elderly and handicapped as the terms of the original loan. Prohibits the Secretary from selling any mortgage held as security for such a loan.

Replaces the Secretary's authority to provide such loans with authority to provide assistance in the form of a deferred payment, noninterest bearing advance to any corporation, consumer cooperative, or public agency or body for the provision of housing for elderly or handicapped families. Conditions such assistance only on the Secretary's finding that the construction will be undertaken in an economical manner with no extravagant design or materials. Limits the amount of such assistance to the total development cost of a project.

Authorizes the Secretary to provide additional assistance to such an entity in an amount not exceeding 75 percent of the total development cost of a project if part of the financing is to be provided by a public housing agency.

Requires repayment of such assistance after 20 years. Permits the Secretary to forgive a portion of an advance for each year after 20 years that a project continues to serve elderly and handicapped families, and the entire advance after 40 years of continued service. Directs the Secretary to require that at least 75 percent of the units of a project receiving an advance be made available to lower income families during the initial 20-year period of such advance. Authorizes appropriations.

Requires the rents for lower income families occupying such projects to be determined in accordance with provisions governing the determination of rents for lower income occupants of units assisted under the United States Housing Act of 1937, with certain exceptions.

Directs the Secretary to enter into contracts with owners of assisted projects to make payments to cover the costs of units occupied by lower income families that are not met from project income. Limits: (1) the annual contract amount per project; (2) the aggregate contracting authority of the Secretary per year; and (3) the aggregate amount that may be obligated over the duration of the contracts.

Amends the Congregate Housing Services Act of 1978 to require the Secretary to submit to Congress a report evaluating any change in the administration of the congregate housing services program and assessing any plan for decentralizing such administration. Prohibits the Secretary from implementing such a plan until such report is submitted. Authorizes appropriations for such program for FY 1984.

Amends the United States Housing Act of 1937 to direct the Secretary to allow lower-income housing assistance provided under the existing housing and moderate rehabilitation programs to be used for shared housing for the elderly.

Amends the Housing and Urban Development Act of 1965 to direct the Secretary to offer, annually, to amend rent supplement payment contracts with housing owners to provide sufficient payments to cover necessary rent increases and changes in the incomes of tenants, regardless of whether such housing is insured under the National Housing Act. Allows the Secretary to use recaptured authority under such program for further assistance under such program and for rental assistance payments under the National Housing Act.

Amends the Housing and Community Development Act of 1980 to provide that certain restrictions regarding the provision of Federal housing assistance to aliens other than alien students or their families shall apply only to those aliens applying for such assistance after enactment of this Act. Directs the Secretary to require assistance applicants to include in their applications a certification as to their citizen status and eligibility for assistance.

Requires the Secretary to conduct a demonstration project under which the Secretary shall make grants to at least 20 local governments on the basis of applications setting forth administrative plans for government activities designed to: (1) require or encourage owners of rental housing occupied by lower income families to bring such housing into compliance with local housing codes; (2) provide technical and financial assistance to assist such owners to make cost-effective improvements in such housing; (3) work with the State to establish a schedule of local shelter allowances for recipients of assistance under title IV (Aid and Services to Needy Families with Children) of the Social Security Act based on building quality; and (4) coordinate local housing inspection, housing rehabilitation loan or grant assistance, rental assistance, and social service programs for the purpose of improving the quality and affordability of housing for lower income families. Permits the Secretary to make grants to States to provide technical assistance to local governments carrying out such administrative plans. Requires each grant recipient to agree to: (1) contribute an amount equal to 15 percent of the grant amount; and (2) permit the Secretary and the General Accounting Office to audit its books. Requires the Secretary, by March 1, 1984, to transmit to Congress a report concerning such project, along with any legislative recommendations. Authorizes appropriations for FY 1984 for conducting such project.

Prohibits Federal housing assistance provided to an individual from being considered as income or a resource for the purpose of determining the eligibility of, or amount of benefits payable to, such individual under any other Federal assistance program.

Amends the National Housing Act to limit to ten years the duration of a periodic homeownership assistance payment that may be provided under any contract entered into and funded after FY 1983. Establishes a fund in the Treasury to be used by the Secretary to continue providing such payments after such ten-year period has expired to homeowners who are unable to assume the full payments due. Increases the amount of annual payments authorized under such contracts for FY 1984. Specifies the aggregate amount that may be obligated over the duration of contracts entered into with authority provided for FY 1984 for annual contributions for low-income housing under the United States Housing Act of 1937. Repeals restrictions in current law on the Secretary's authority to enter into new contracts for such assistance payments after May 20, 1983.

Authorizes the provision of FHA insurance for mortgages for substantially rehabilitated three-family dwellings, provided the owner occupies one of the units. Conditions such insurance on the owner's agreement: (1) not to discriminate against prospective tenants because of their receipt of, or eligibility for, housing assistance under any Federal, State, or local program; and (2) that, for the mortgage term, the rental units will be occupied by, or available to, tenants whose incomes do not exceed the area median income.

Prohibits federally assisted rental housing projects for the elderly and handicapped from forbidding tenants to have pets or discriminating against persons having pets.

Permits a project authority to require the removal of a pet that constitutes a threat to the health or safety of project occupants or other persons in the community.

Title III: Multifamily Housing Production Program - Rental Housing Production and Rehabilitation Act of 1983 - Directs the Secretary to provide financial assistance to State and local governments (including Indian tribes) to be used to stimulate the construction and rehabilitation of multifamily rental housing projects and housing for persons without other reasonable and affordable housing alternatives in the private market. Directs State and local governments which receive such assistance to provide such projects with capital grants, loans, interest reduction payments, grants for the purchase of land, and other types of assistance designed to reduce project development and operating costs. Prohibits a State from providing such assistance to any project unless the local government of the project area approves the application for assistance for such project. Allows a local government to apply directly to the Secretary for assistance. Prohibits a project from being assisted both directly and by the Federal Government through a State agency under this Act.

Sets forth area eligibility criteria, project selection criteria, and guidelines for allocating assistance. Directs the Secretary to give priority for assistance to projects that exceed requirements concerning occupancy by persons and families whose incomes do not exceed 80 percent of the area medium income. Directs the Secretary to make a reasonable distribution of such assistance in each State between units occupied by handicapped or elderly families and others. Limits the amounts provided for elderly or handicapped families proportionately based on the number of such families compared to the number of other families living in substandard housing in each State. Requires the amount of assistance provided to a project to be the least amount necessary to provide decent and affordable rental or cooperative housing of modest design. Prohibits the provision of assistance to persons who can afford project units without it.

Requires the owner of an assisted project to agree that for the first 20 years of the project: (1) 20 percent of the project units will be available for families whose incomes do not exceed 80 percent of the median area income; (2) savings resulting from reduced debt service payments for assistance will be passed on to the tenants; (3) prospective tenants will not be discriminated against because they have a minor child or children or on the basis of their receipt of, or eligibility for, Federal, State, or local housing assistance; and (4) units will not be converted to condominium ownership or a form of cooperative ownership not eligible for assistance. Directs the Secretary to require an owner who violates any such agreement to repay all assistance plus interest.

Requires rent charges for project units for low-income tenants to be approved by the Secretary. Limits such charges to 30 percent of a tenant's adjusted income. Requires 30 days written notice to tenants of rent increases.

Declares obligations issued by a State or local housing agency to finance a project assisted under this part to be tax-exempt. Authorizes FHA insurance for an assisted project meeting FHA standards.

Requires that contracts for such assistance contain a provision requiring the payment of prevailing wages to workers employed in the development and operation of the project involved.

Provides a specified amount of the budget authority made available for annual contributions to public housing agencies for lower income housing for assistance under this title.

Title IV: Rural Housing - Amends the Housing Act of 1949 to authorize appropriations for FY 1984 to the Secretary of Agriculture: (1) to insure and guarantee loans for rural housing, with specified amounts earmarked for housing loans to persons of low income, loan insurance for housing for domestic farm labor, loans for rental or cooperative housing for elderly or handicapped persons or families of low or moderate income, and certain loans for housing and buildings on adequate farms; (2) to make loans and grants for improvements of rural housing; (3) to provide financial loans and assistance for the provision of low-rent housing for domestic farm labor; (4) to make grants or contracts for the development of programs to assist low-income persons in benefiting from housing programs in rural areas; (5) for programs of mutual and self-help housing in rural areas; and (6) for the Self-Help Housing Land Development Fund.

Extends the authority of the Secretary of Agriculture to: (1) insure loans to provide rental housing for persons of moderate income; (2) insure loans for housing and buildings on adequate farms; and (3) make assistance payments to owners of low-income rental housing projects, with a specified amount of FY 1984 assistance earmarked for domestic farm labor and elderly or handicapped persons who are tenants of newly constructed or substantially rehabilitated housing. Eliminates use of the Rural Housing Fund for specified rural housing programs.

Revises the maximum rental charge for certain assisted rural housing to the highest of: (1) 25 percent of the family's monthly adjusted income; (2) ten percent of the family's monthly income; or (3) the portion of the family's welfare payment designated for housing costs. Declares that the terms "income" and "adjusted income" shall have the same meanings given such terms under the United States Housing Act of 1937, as amended by this Act. Requires the Secretary of Agriculture to provide that the rental payments for families under rural housing programs shall not increase by more than ten percent annually as a result of any provision of Federal law redefining which Government benefits are to be considered as income.

Authorizes the Secretary of Agriculture to extend the period of a rural housing loan for up to five years if necessary to qualify a person of low income to receive such loan.

Provides that interest credits for low- or moderate-income persons who receive rural housing mortgage loans may not exceed the lesser of: (1) the person's mortgage payments after applying 20 percent of his or her adjusted income; or (2) the person's mortgage payments exceeding what those payments would be if the mortgage were to bear one percent interest.

Authorizes the Secretary of Agriculture to use fee inspectors and appraisers to expedite the processing of applications for rural housing grants and loans, and to include the cost of such services in the amount of such loans and grants.

Directs the Secretary of Agriculture, when determining whether to provide housing assistance to domestic farm laborers in an area, to consider the housing needs for only those persons.

Allows the use of rural housing loans for utilizing as rental or cooperative housing for persons of low income existing dwellings that the Secretary holds as a result of a transfer or foreclosure or for which eligible applicants for purchase have not been identified after a reasonable period.

Provides that for the purpose of determining the market feasibility of any rural housing rental assistance project, the Secretary shall require that: (1) applicants for projects requiring Federal rental assistance payments demonstrate that a market exists for persons and families eligible for such payments; and (2) applicants for projects requiring similar State or local assistance payments demonstrate that a market exists for persons eligible for such assistance, that such assistance program permits rental assistance contracts of not less than five years duration, and that amounts required for such assistance shall be provided not less than annually.

Directs the Secretary of Agriculture to establish standards for housing rehabilitated with rural housing assistance that are less stringent than standards for housing constructed with such assistance. Prohibits the Secretary from: (1) denying rural housing loans because a project is to be located on more than one site or because rental assistance payments may be required; or (2) promulgating any regulation that would deny occupancy to eligible persons because they require rental assistance payments. Eliminates a provision directing the Secretary to give a priority for assistance to projects in which assistance is provided to 40 percent or less of the project units.

Provides that a rural area with a population of between 10,000 and 20,000 people that was classified as a rural area before the 1980 census shall continue to be classified as such an area and, therefore, eligible for rural housing assistance through the end of FY 1984 as long as it has a serious lack of mortgage credit for lower- and moderate-income families.

Authorizes the Secretary of Agriculture to provide rental housing assistance for elderly or handicapped persons living under a shared housing arrangement in a single-family dwelling.

Requires the Secretary of Agriculture to give priority to providing rural housing assistance to applicants with the greatest housing assistance needs because of their low incomes and inadequate dwellings.

Requires the Secretary of Agriculture to process requests for insured and guaranteed loans, interest credits, and rental assistance payments in a manner providing for a preliminary reservation of assistance at the time of initial approval of a project.

Authorizes the Secretary of Agriculture to provide financial assistance to local governments and nonprofit organizations for programs of repair and rehabilitation of rental and cooperative housing and single-family dwellings for low-income persons in rural areas. Directs the Secretary to ensure a reasonable distribution of such assistance among eligible rural areas throughout the nation. Directs the Secretary, in selecting assistance recipients, to consider the extent to which: (1) the programs will assist persons of low income lacking adequate shelter; (2) other organizations will provide assistance; (3) activities will take place in areas having populations below 10,000; and (4) activities will achieve the greatest results at the lowest cost. Requires the Secretary of Agriculture to provide the least amount of assistance necessary to provide decent rental and cooperative housing of modest design that is affordable for persons of low income.

Lists conditions for the receipt of such assistance. Requires the owner of rental or cooperative housing to agree that for the first 15 years that housing units are available for occupancy: (1) persons of low income will occupy such housing; (2) savings resulting from reduced debt service payments will be passed on to tenants; (3) prospective tenants will not be discriminated against because of their receipt of, or eligibility for, other Federal, State, or local housing assistance; and (4) units will not be converted to condominium or cooperative ownership that is not eligible for such assistance. Requires the repayment of assistance plus interest if such conditions are violated. Requires the local government or organization to: (1) certify that program assistance will be provided in accordance with fair housing laws; (2) review proposed rent increases; (3) supervise and inspect repairs and rehabilitation performed by someone other than an employee; and (4) report periodically to the Secretary.

Requires rents charged for assisted units to be approved by the Secretary of Agriculture and to be limited to 25 percent of a tenant's adjusted income. Requires 30 days notice of any rent increase.

Directs the Secretary of Agriculture to provide for the recapture of assistance upon the disposition of assisted housing involving a discontinuation of its use under such program. Authorizes appropriations for such program for FY 1984.

Directs the Secretary to use a specified portion of the amounts appropriated for financial assistance for the provision of low-rent housing for domestic farm labor for financial assistance to eligible private and public nonprofit agencies to encourage development of domestic and migrant farm labor housing projects.

Title V: Program Amendments and Extensions - Part A: Federal Housing Administration Mortgage Insurance Programs - Amends the National Housing Act to extend the authority of the Secretary to insure loans for mortgages and home improvement, to provide periodic assistance payments for stimulation of the housing market, and to establish the maximum interest rates for certain mortgage insurance programs. Increases the amount of funds authorized to be appropriated to cover losses sustained by the General Insurance Fund.

Provides that a unit in a cooperative housing project shall qualify for FHA insurance if construction of the project was completed more than a year prior to application for insurance. Eliminates the requirement that the cooperative housing project be nonprofit.

Authorizes the Secretary to insure the loan on an existing manufactured home if such home was constructed according to the standards issued under the National Manufactured Housing Construction and Safety Standards Act of 1974 and it meets minimum property standards for FHA insurance for existing homes.

Requires the Secretary to provide homeownership counseling to persons receiving temporary mortgage assistance payments to avoid foreclosure. (Currently, the Secretary is directed to provide such counseling to the extent practicable.)

Makes public hospitals eligible for FHA insurance.

Makes FHA insurance programs available for property located in American Samoa.

Authorizes the Secretary to insure mortgages and loans with monthly payments and outstanding balances adjusted by a percentage change in a selected price index. Directs the Secretary to give a priority to insuring such mortgages executed by mortgagors who have not owned dwelling units within the preceding three years. Requires the Secretary to conduct a demonstration program for insuring such loans and mortgages during FY 1984.

Requires energy performance requirements established by the Secretary for newly constructed homes subject to FHA-insured mortgages to be as effective in achieving energy efficiency as the requirements in effect on September 30, 1982. Requires that each property subject to a FHA-insured mortgage comply with a nationally recognized model building code or a State or local code based on a nationally recognized code.

Increases the maximum amount of a mortgage on a newly constructed condominium that is eligible for FHA insurance.

Authorizes the Secretary to insure graduated payment mortgages or loans for multifamily housing upon determining that such loans or mortgages: (1) would expand housing opportunities or meet special needs; (2) can be developed to include any safeguard for mortgagors, tenants, or purchasers that may be necessary to offset the special risks of such loans or mortgages; and (3) have a potential for acceptance in the private market. Limits the principal obligation of a loan or mortgage that may be insured.

Authorizes the Secretary to insure a mortgage on a one- to four-family residence on property located within Hawaiian home lands covered under a homestead lease if: (1) the mortgage is executed by a native Hawaiian; (2) the property will be the principal residence of the mortgagor; and (3) the Department of Hawaiian Home Lands is a comortgagor, guarantees to reimburse the Secretary for any insurance claim paid on such property, and offers other security acceptable to the Secretary. Authorizes the Secretary to insure advances made during construction of such a residence if the proposed construction is acceptable and no feasible financing alternative is available.

Amends the National Housing Act to require FHA loans and mortgage loans to bear interest at such rate as may be agreed upon by the borrower and the lender. (Currently such rate is prescribed by the Secretary.)

Authorizes the Secretary to agree to extend the term of an insured mortgage for land development and new communities if necessary to avoid undue hardship to the mortgagor resulting from unusual or unforeseen circumstances.

Authorizes the Secretary to insure any mortgage covering a new or rehabilitated board and care home that is regulated by a State under the Social Security Act as a facility in which a significant number of recipients of supplementary security income benefits reside. Prohibits the Secretary from insuring such a mortgage unless he or she has received a statement from the appropriate State licensing agency verifying the State's compliance with regulatory requirements under such Act. Authorizes the Secretary to insure a loan for the purchase and installation of fire safety equipment for such a home.

Part B: Secondary Mortgage Market Programs - Amends the Emergency Home Purchase Assistance Act of 1974 to extend the authority of the Secretary to direct the Government National Mortgage Association (GNMA) to purchase mortgages and securities.

Amends the Federal National Mortgage Association Charter Act to extend the authority of the GNMA to guarantee mortgage-backed securities issued by the Federal National Mortgage Association (FNMA), subject to the absence of qualified requests.

Amends the Federal National Mortgage Association Charter Act and the Federal Home Loan Mortgage Corporation Act to require the limitation on the maximum principal obligation of a conventional mortgage, in which the FNMA or the Federal Home Loan Mortgage Corporation (FHLMC) may purchase a participating interest, to be calculated with respect to the total principal obligation of the mortgage. Authorizes such corporations, until October 1, 1985, to purchase mortgages secured by a subordinate lien against a one- to four-family dwelling. Specifies limitations on the maximum principal obligation of the mortgages.

Authorizes the FHLMC to purchase mortgage loans insured by State agencies.

Repeals the requirement that all voting rights for the FNMA shall be vested in the common stock shareholders. Deletes requirements that: (1) any loan or any loan extension or renewal made by the FNMA shall not exceed 90 percent of the unpaid principal balances of mortgages securing such loan; and (2) loan terms and periods of renewals or extensions shall not exceed 12 months.

Provides for the annual election by the stockholders of three additional members of the board of directors of the FNMA.

Repeals a provision prohibiting the FNMA from issuing any obligation without the Secretary's approval. Restricts the Secretary's approval authority to FNMA issuances of stock and debt obligations convertible into stock.

Requires the Secretary to report to Congress annually on FNMA activities. Requires the Secretary to approve an FNMA request for action or to report to Congress on its reasons for disapproving such request within 45 days after it receives such report. Authorizes a 15-day extension of such period.

Authorizes the FHLMC to purchase manufactured home loans whether secured by personal, real, or mixed property.

Increases the limitation on the maximum principal obligation of conventional multifamily mortgages purchased by the FNMA or the FHLMC from 125 to 240 percent of the mortgage limits established for FHA insurance eligibility.

Provides for the extension of a GNMA commitment to insure a mortgage without the imposition of a fee if the original commitment was for a period shorter than the construction period as estimated by the Secretary.

Requires the Secretary to submit a report to Congress regarding mortgage prepayment penalties and their impact on secondary mortgage market activities.

Excludes multifamily mortgages from the applicability of provisions that prohibit the FNMA or the FHLMC from purchasing morgages with loan-to-value ratios greater than 80 percent unless the seller has mortgage insurance, retains a ten percent participation interest, or commits to repurchase or replace the mortgage in case of default.

Part C: Other Programs - Requires the Secretary to submit to Congress a report which describes: (1) HUD standards for determining whether program requirements and changes are implemented through regulations, memoranda, or other forms of notice; and (2) the system used to assure that program changes affecting the eligibility, rights, or benefits of applicants for, or recipients of, program assistance are subject to notice and publication requirements of the Administrative Procedure Act.

Amends the Real Estate Settlement Procedures Act of 1974 to exempt a controlled business arrangement under which a person who has an ownership interest in, or an affiliate relationship with, a provider of settlement services refers real estate business involving a federally related mortgage to that provider, from the prohibition against kickbacks for referrals of such business if: (1) prior to such referral, a good faith effort is made to disclose the existence of such arrangement; (2) the person being referred is furnished a written estimate of the provider's charges; (3) such person is not required to use any particular provider; and (4) the only thing of value received under such arrangement is a return on the ownership interest or franchise relationship. Declares that any arrangement which requires the use of an attorney, credit reporting agency, or real estate appraiser chosen by a lender, or under which an attorney representing a client to the transaction issues a title insurance policy directly as an agent or through an agency adjunct to his or her law practice, shall not violate conditions for an exempt controlled business arrangement.

Makes persons who violate the prohibition against kickbacks or referrals jointly and severally liable to the person charged for settlement services for three times the amount charged for such services. Authorizes the attorney general or the insurance commissioner of any State and the Secretary to bring an action to enjoin violations of such prohibition. Sets a three-year statute of limitations for a suit brought by an attorney general, insurance commissioner, or the Secretary. Authorizes the Secretary to conduct investigations and issue subpoenas necessary to enforce such prohibitions.

Amends the Housing and Community Development Act of 1974 to authorize appropriations for FY 1984 for the National Institute of Building Sciences.

Amends the Solar Energy and Energy Conservation Bank Act to make air conditioning systems having better than average energy efficiency and any commercial or residential energy audit eligible for Bank subsidies. Requires the Solar Energy Advisers Committee and the Energy Conservation Advisory Committee to meet at least twice each year at the call of their chairpersons or a majority of their members.

Permits an owner or tenant of a two- to four-unit residential building, or the owner of a residential building available for rent, whose income exceeds 150 percent of the median area income to receive Bank subsidies of the lesser of 20 percent of the cost of energy conservation measures or $400 per dwelling unit.

Prohibits the Board of Directors of the Bank from limiting the amount of assistance available for energy conservation measures on the basis of the projected energy savings of such measures.

Directs the Board to issue regulations that: (1) permit the provision of assistance for the purchase and installation of active solar energy systems and for the purchase and installation of passive and active solar space heating and water heating systems in residential buildings; (2) permit metropolitan cities and urban counties to receive Bank assistance directly; (3) permit the use of tax-exempt financing in connection with Bank subsidies; (4) prohibit making an energy audit a prerequisite for the receipt of Bank assistance by the owner or tenant of a residential building; (5) establish specified limitations on the amount of Bank assistance that may be used for administrative expenses; (6) establish criteria for allocating assistance among eligible financial institutions; and (7) require recaptured assistance to be reallocated among eligible financial institutions.

Amends the Omnibus Budget Reconciliation Act of 1981 to increase the amount of appropriations authorized for the Bank for FY 1984.

Authorizes the provision of solar energy grants to buyers of residential energy conserving improvements installed in buildings located in service areas of utilities not included on the residential conservation list or in service areas for which such list has not been made public.

Amends the Department of Housing and Urban Development Act to prohibit any reorganization plan for the central office of HUD from taking effect until 90 days after a cost-benefit analysis of the plan is published in the Federal Register. Requires the analysis of a reorganization plan for any HUD office to study the plan's impact on unemployment in the public and private sector.

Amends the Energy Conservation in Existing Buildings Act of 1976 to earmark for the weatherization program for FY 1984 a specified amount of the funds authorized to be appropriated for energy conservation under the Omnibus Budget Reconciliation Act of 1981.

Amends the National Flood Insurance Act of 1968 to extend the national flood insurance program until September 30, 1985, and to authorize appropriations for various insurance studies during FY 1984. Changes the officer designated to carry out such program from the Secretary to the Director of the Federal Emergency Management Agency (FEMA). Confers original exclusive jurisdiction upon a U.S. district court to hear and determine actions on flood insurance claims. Extends until September 30, 1987, the deadline for the establishment of flood-risk zones in flood plain areas. Limits premiums charged for flood insurance under such program to the premiums in effect on September 15, 1982. Directs the Federal Insurance Administrator to submit a report to Congress explaining premium rate increases during the two years ending on September 15, 1982, and increases expected to be made before October 1, 1985.

Amends the National Housing Act to extend the authority: (1) to carry out the Federal riot insurance program and the Federal crime insurance program until September 30, 1985; and (2) to continue riot and crime insurance policies written prior to such date until September 30, 1988. Changes the officer designated to carry out such programs from the Secretary to the Director of FEMA.

Amends the Housing and Urban Development Act of 1968 to authorize appropriations for FY 1984 for counseling and technical assistance programs for low- and moderate-income families with respect to housing.

Amends the Housing and Urban Development Act of 1970 to authorize appropriations for research activities of HUD. Earmarks specified amounts of such funds for: (1) implementation of a research program to identify and solve problems of public housing management; (2) a report to be prepared by an independent firm and submitted to Congress on the costs of bringing public housing into compliance with energy standards under the Comprehensive Improvement Assistance Plan and handicapped accessibility requirements, additional assistance required to finance such costs, and past and planned actions; (3) a study of the capacity of mutual housing associations to provide housing to families in a cost-effective manner; and (4) collection of a data series on national, regional, and local economic and housing market conditions.

Amends the Housing and Urban Development Act of 1968 to authorize the national housing partnership to: (1) acquire and finance housing and, to a limited extent, build, rehabilitate, acquire, and finance commercial, industrial, and retail facilities that provide employment or services to families of low and moderate income; and (2) enter into partnerships, limited partnerships, or joint ventures for the acquisition, development, financing, construction, rehabilitation, and management of housing and related facilities, with priority placed on housing for the benefit of families of low and moderate income.

Requires the Secretary to: (1) conduct a survey every three months of residential mortgage delinquencies and foreclosures; and (2) report the results of such surveys to Congress. Requires that such report separately identify federally-insured mortgages.

Amends the Multifamily Mortgage Foreclosure Act of 1981 to require the purchaser of any multifamily mortgage foreclosed by the Secretary to continue to operate the property under the terms of the Federal loan or insurance program originally provided with respect to such property.

Amends the Alternative Mortgage Transaction Parity Act of 1982 to partially override the Federal pre-emption of alternative mortgage instrument regulations. (Currently, States are only authorized to override such pre-emption in its entirety.)

Directs the Secretary to give primary consideration to the relative extent of unemployment in each State or local government when allocating financial assistance under any demonstration program involving employment training.

Title VI: Guaranteed Loan Demonstration Program - Amends the Housing Act of 1949 to direct the Secretary of Agriculture to carry out a program to demonstrate the effectiveness of utilizing the loan guarantee authority provided in this title in connection with State or private mortgage credit.

Authorizes the Secretary of Agriculture to: (1) insure loans for housing and buildings on adequate farms made by any State housing finance agency or private lender on the same terms and conditions as such a loan provided by the Secretary of Agriculture; and (2) provide interest subsidies for such insured loans on behalf of borrowers whose income does not exceed 130 percent of the median area income. Prohibits such an interest subsidy from reducing the annual interest rate of a loan to below one percent. Requires the Secretary of Agriculture to provide for the recapture of such subsidy assistance upon the disposition or nonoccupancy of the property by the borrower.

Earmarks a specified amount of appropriations approved for rural housing loans for persons of low and moderate income for 1984 for such demonstration program.