CONTENTS Introduction__ Explanation of bill.. Title I-Mortgage credit. Section 101-Extension of programs. Section 102-Lower downpayments for FHA-financed sales housing-- Section 104-High-cost area mortgage limits for low- and moderate- Section 105-Mortgage insurance on condominium units for service men_ Section 106-Assistance payments under section 235 for purchaser assuming mortgage__ 5 Section 107 Authorization for assistance payments under sections 235 and 236_. 6 Section 108-Assistance payments with respect to existing dwellings under section 235___ 6 Section 109-Conversion of section 236 projects to condominium ownership. Section 110-Preferences in section 237 mortgage insurance program. 778 Section 113-Increase in GNMA purchase authority. Section 115-Authorization for rent supplements. Section 116-Liberalization of limitation on rent supplement payments with respect to section 236 projects-- Title II-Urban renewal and housing assistance grants. Section 202-Extension of urban renewal assistance to Trust Territory Section 205-Loans for public housing projects.. Section 208-Room cost limitations for public housing projects---- Section 204-Removal of income limitation for loans under rehabilitation loan program__ Section 203-Extension of period of eligibility of local grants-in-aid for certain neighborhood development projects. Study of Federal subsidy requirements for low-rent public housing-- (III) 30 30 མམས མ མི་ཕམ ཆེ ཆེ ཚ ི ཀ པའི ཚེ ར Page Title III-Model cities and metropolitan development program.. Section 304-Authorization for open space, urban beautification, and Section 305-Authorization for new community supplementary assist- Section 306-Community facilities grants... Section 307-Urban mass transportation_ Section 308-Extension of urban information and technical assistance service authorization___ Section 309-Training and fellowship program_ Title IV-Miscellaneous__. Section 401-Flexible interest rate authority Section 402-Authorization for property acquisitions in applying ad- Section 405-Urban property protection and reinsurance-entry into Section 406-Urban property protection and reinsurance-State share of reinsured losses.. Section 407-Study of reinsurance and other programs. Section 408-National flood insurance program-adoption of local Section 409-Interstate land sales- Section 411-Rural housing.. Section 412-Sale of land for housing Section 413-Savings and loan association___ Safety features for medicine cabinets in federally assisted housing- Section-by-section summary Title I-Mortgage credit_ Title II-Urban renewal and housing assistance programs.. Title III-Model cities and metropolitan development programs.. Title IV-Miscellaneous__ Cordon rule dispensed with Individual views of Mr. Tower.. Housing authorizations... Acquisition and sale of land for housing Utilization of new technologies.. Public housing 39 44 47 49 Mr. SPARKMAN, from the Committee on Banking and Currency, submitted the following REPORT together with INDIVIDUAL VIEWS [To accompany S. 2864] The Committee on Banking and Currency, having considered the same, report favorably a committee bill (S. 2864) to amend and extend laws relating to housing and urban development, and for other purposes, and recommend that the bill do pass. Introduction The committee bill reported herewith is essentially a bill to extend and continue existing Federal housing programs authorized by previous acts of Congress. The extension is done in either of two waysone, on a time basis by establishing new termination dates for the program, and the other by authorizing additional funds to carry the programs through the time period indicated. In general, the committee agreed to a 2-year extension of those programs that came before the committee for consideration. The most important of these are the Federal Housing Administration programs, urban renewal, model cities, rent supplement, and public housing. In addition to extending the programs, a number of amendments were agreed to in order to make the programs more workable and more effective in carrying out the intent of Congress and in meeting current housing needs. The committee bill is an omnibus bill containing provisions requested by the administration under S. 2620, and many other bills and amendments submitted to the committee for consideration. Six days of public hearings were held on pending bills-July 15, 17, 18, 21, 22, and 25. The hearings were followed by 7 days of committee executive sessions (August 5, 6, 7, 8, 11, 12, and 13) to consider all pending legislative proposals for appropriate recommendations to the Senate. The recommendations do not include any new far-reaching programs. The comprehensive Housing and Urban Development Act of 1968 established a number of new programs which, even at this time— 1 year later—are not all fully implemented. These programs covered a wide range of activities involving practically every facet of housing and urban development needs and, once implemented, should provide the impetus needed for our Nation to meet the national housing goal of a decent home and suitable living environment for every American family. The committee believes it is important for the administration to make the existing programs fully operational before enacting new ones. The most significant part of the committee bill involves the dollar authorizations to fund the programs through fiscal year 1972. In general, the committee authorized funds to continue the programs at existing levels, but raised the amount authorized to take into account new program authority, increased costs, and increased interest charges. Higher levels of funding were authorized for the interest subsidy programs for fiscal year 1972 to be consistent with the goals require ments of the 1968 Housing and Urban Development Act. The committee believes that, with the new level of funds plus the new improvements in operational authority authorized by the bill, the Federal Government in cooperation with the communities and cities of this Nation would be ready to move full speed ahead to cope with one of our most difficult domestic problems-the slums of America and the shortage of decent housing for our American people. EXPLANATION OF BILL SHORT TITLE Section 1 of the bill cites the bill as the "Housing and Urban Development Act of 1969." Title I-Mortgage Credit EXTENSION OF PROGRAMS Section 101 of the bill would extend, until October 1, 1971, the Federal Housing Administration's authority under the National Housing Act to insure housing and other types of mortgage loans and to insure title I property improvement loans. Without this extension the FHA's basic insuring authorities will (with minor exceptions) expire on October 1 of this year. LOWER DOWNPAYMENTS FOR FHA-FINANCED SALES HOUSING Section 102 of the bill would lower the downpayment required on homes and condominium units under several of FHA's basic home mortgage programs. Under present law, the minimum downpayment required for that part of the value of a home over $20,000 is 20 percent, or 15 percent in the case of a veteran or serviceman. For that part of the value of a home over $15,000 but not in excess of $20,000, the present minimum downpayment is 10 percent. This section would extend from $20,000 to $25,000 the value of a home with respect to which a 10 percent minimum downpayment is required. The 20 percent downpayment requirement (or 15 percent for a veteran or serviceman) would continue to apply for that part of a home's value over $25,000. In recent years, the cost of a medium-priced home has risen rapidly. The same homes which sold for $15,000 a few years ago are now selling at much higher prices. As a result, many moderate income families who wish to purchase these homes do not have the cash resources to meet the increased downpayment requirements presently prescribed. The committee feels this change is needed if FHA's nonsubsidy mortgage insurance programs are to continue to serve moderate income families who, because of increased costs, must pay higher prices for their homes. The larger mortgages which these families must bear because of increased home prices can be offset if full use is made by the Secretary of existing statutory authority to insure mortgages on new homes with maturities of 35 years and the committee expects the Secretary to take appropriate steps to make the 35-year mortgage terms more widely available than at present. (3) |