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Act of 1950 to increase by such sums as may be necessary the aggregate amount of contracts which may be entered into to make annual debt

service grants to help finance college housing facilities.

New Community Development Corporation

Title VII of the Housing and Urban Development Act of 1970 would be amended so as to change the name of the Community Development Corporation to the "New Community Development Corporation." This change is needed to identify more accurately the nature and purpose of the Corporation. Interstate Land Sales Full Disclosure Act

The bill would add a new subsection to the Interstate Land Sales Full Disclosure Act which would authorize the Secretary to promulgate rules and regulations under which he could make a finding that a fiduciary holding only legal title to lots in a subdivision is exempt from the provisions of the Act. In some areas, subdivision land trusts are used instead of more conventional construction and development mortgage financing in order to facilities passage of title from land owners directly to purchasers of developed lots. In such cases, although the trustee holds bare legal title to the subdivision and performs certain ministerial functions only, such as deeding a lot to a purchaser after receipt of the purchase price and distribution of the proceeds to the developer, subdivision landowner, and development lender as may be provided for in the trust, the trustee may personally be subject to all the requirements of the Act, including penalties applicable to a developer. In most instances, this is neither desirable nor necessary to protect the public interest. The bill would not eliminate the requirement that a

subdivision held in the name of a trustee be registered. The developer

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insurance losses and expenses, it is expected that the amounts of subsidy payments made to the flood insurance pool, operated by the National Flood Insurers Association on behalf of insured owners of existing property, will be related to actual program experience over a reasonable period of years rather than, as under present provisions of law, to a calculation based upon highly theoretical estimated actuarial rates without any test

based on experience.

Surplus property

The bill would amend section 414 of the Housing and Urban Development Act of 1969 dealing with surplus property. Section 414 now permits surplus real property to be transferred by the Administrator of General Services, in his discretion, to the Secretary of HUD for sale or lease by him at its fair value for use in the provision of housing to be occupied by

families or individuals of low or moderate income. Property to be used

for related public, commercial and industrial facilities may also be

transferred.

Prior to any sale or lease to a purchaser other than a public body, the Secretary must notify the governing body of the locality where the property is located, and no sale or lease may be made if, within 90 days, the local governing body notifies the Secretary of its objection. Section 414, as it would be amended by the bill, would provide that surplus real property may, in the discretion of the Administrator, of General Services, be made available at the request of the Secretary of Housing and Urban Development for disposition in accordance with the plan approved by him for the provision of housing and related facilities or for land development which is in furtherance of a new community or a major development or redevelopment program having community-wide impact.

would still be required to register. However, the fiduciary (trustee) could be exempted from the responsibilities and penalties provided in

the Act if the Secretary finds that it is not necessary in the public

interest to retain jurisdiction over the fiduciary where there is

satisfactory jurisdiction over a true developer who has an entrepreneurial interest in a subdivision.

Flood Insurance Premium Equalization Payments

The National Flood Insurance Act of 1968 would be amended by deleting section 1334 (b) the detailed provisions for calculating the amount

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of premium equalization payments for a specific payment period. The
detailed requirements of the present subsection (b) apply solely to the
"regular" program initially authorized by the Act prior to authorization
of the "emergency" program in 1969.

Repeal of subsection (b) would permit the amount of the premium equalization payments to be based upon all factors affecting the actuarial results of program operations. It is proposed that the amount of payments to be made in any one period would in the future be based upon regulations governing the terms of the agreement between the Federal Insurance Administrator and the National Flood Insurers Association, the association responsible for the operational aspects of the program. The regulations and the agreement will provide for incorporating the relevant experience data accumulated in the "emergency" program in the determination of premium equalization payments under the "regular" program.

Through the use of a balancing formula so constructed as to continuously take account of properly weighted experience data reflecting actual flood

insurance losses and expenses, it is expected that the amounts of subsidy payments made to the flood insurance pool, operated by the National Flood Insurers Association on behalf of insured owners of existing property, will be related to actual program experience over a reasonable period of years rather than, as under present provisions of law, to a calculation based upon highly theoretical estimated actuarial rates without any test

based on experience.

Surplus property

The bill would amend section 414 of the Housing and Urban Development Act of 1969 dealing with surplus property. Section 414 now permits surplus real property to be transferred by the Administrator of General Services, in his discretion, to the Secretary of HUD for sale or lease by him at its fair value for use in the provision of housing to be occupied by families or individuals of low or moderate income. Property to be used for related public, commercial and industrial facilities may also be transferred.

Prior to any sale or lease to a purchaser other than a

public body, the Secretary must notify the governing body of the locality where the property is located, and no sale or lease may be made if, within 90 days, the local governing body notifies the Secretary of its objection. Section 414, as it would be amended by the bill, would provide that

surplus real property may, in the discretion of the Administrator, of General Services, be made available at the request of the Secretary of Housing and Urban Development for disposition in accordance with the plan approved by him for the provision of housing and related facilities or for land development which is in furtherance of a new community or a major development or redevelopment program having community-wide impact.

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