COMPILATION OF BASIC LAWS APPLICABLE TO THE

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COMPILATION OF BASIC LAWSAPPLICABLE TO THE DEPARTMENTOF HOUSING AND URBANDEVELOPMENTJune 2019 UpdateREVISED THROUGH June 14, 2019This Compilation of Laws Applicable to the Department of Housing and Urban Development is not an official legaledition of the U.S. Code. The public laws in this document were compiled by the Office of Legislation andRegulations in the Office of General Counsel, which strived to make this compilation as complete and accurate aspossible through the date above. However, in making this document publicly available no statements, claims,promises, or guarantees are made about the accuracy or completeness of the contents of this document. An officialversion of the U.S. Code can be found on the website of the Office of Law Revision Counsel athttp://uscode.house.gov/ and on the website of the U.S. Government Printing Office .action?collectionCode USCODE.OFFICE OF THE GENERAL COUNSEL

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TABLE OF CONTENTSTABLE OF CONTENTS . iNATIONAL HOUSING GOALS . 1PART I—COMMUNITY DEVELOPMENT . 7HOUSING AND COMMUNITY DEVELOPMENT ACT . 7CDBG ASSISTANCE FOR COLONIAS . 44COMMUNITY DEVELOMENT NEEDS COMPUTER DATABASE . 46ADDITIONAL PROVISIONS REGARDING USE OF CDBG AMOUNTS . 48DISTRIBUTION OF CDBG AMOUNTS FOR STATE OF HAWAII . 49REHABILITATION DEMONSTRATION GRANT PROGRAM . 50RIGHT OF REDEMPTION FOR SECTION 312 MORTGAGORS . 51NEIGHBORHOOD REINVESTMENT CORPORATION . 52NATIONAL URBAN POLICY. 57JOHN HEINZ NEIGHBORHOOD DEVELOPMENT PROGRAM . 59COMMUNITY OUTREACH PARTNERSHIP DEMONSTRATION . 62COMMUNITY INVESTMENT CORPORATION DEMONSTRATION . 65ENTERPRISE ZONE DEVELOPMENT . 70CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND AFFORDABLEHOUSING . 76NEIGHBORHOOD STABILIZATION PROGRAM . 77NEIGHBORHOOD STABILIZATION PROGRAM II . 81PROGRAM TO REHABILITATE AND MODIFY HOMES OF DISABLED AND LOWINCOME VETERANS . 83PART II—PUBLIC HOUSING AND SECTION 8 RENTAL ASSISTANCE . 87ALLOCATION OF FUNDS . 87UNITED STATES HOUSING ACT OF 1937 . 90REPEAL OF SECTION 8 NEW CONSTRUCTION. 225FUNDING FOR SECTION 8 TENANT-BASED ASSISTANCE . 228VOUCHER MOBILITY DEMONSTRATION . 229MOVING TO WORK DEMONSTRATION . 231SECTION 8 ADMINISTRATIVE FEES . 236SECTION 8 CONTRACT RENEWALS . 237MULTIFAMILY HOUSING MORTGAGE & ASSISTANCE RESTRUCTURING. 238SECTION 8 RENT ANNUAL ADJUSTMENT FACTORS . 261SECTION 8 EXCESSIVE RENT BURDEN DATA . 263SECTION 8 DISASTER RELIEF ASSISTANCE . 264SECTION 8 HOMEOWNERSHIP DEMONSTRATION . 265SECTION 8 HOMEOWNERSHIP ASSISTANCE PILOT PROGRAM FOR DISABLEDFAMILIES . 2661

CONVERSION OF HUD CONTRACTS TO PROJECT-BASED SECTION 8 CONTRACTS. 268SECTION 8 COMMUNITY INVESTMENT DEMONSTRATION . 269USE OF FUNDS RECAPTURED FROM REFINANCING STATE AND LOCALFINANCE PROJECTS . 271ACCESS TO PUBLIC HOUSING AGENCIES’ BOOKS . 272MISCELLANEOUS PROVISIONS . 273PROCUREMENT OF INSURANCE BY PUBLIC HOUSING AGENCIES . 274TRANSITIONAL CEILING RENTS FOR PUBLIC HOUSING . 275PHA PURCHASE OF ENERGY-EFFICIENT APPLIANCES . 276MENTAL HEALTH ACTION PLANS . 277ANNUAL REPORT REGARDING 1998 ACT . 278CONSULTATION WITH AFFECTED AREAS IN SETTLEMENT OF LITIGATION . 279PART III—SUPPORTIVE HOUSING . 281SUPPORTIVE HOUSING FOR THE ELDERLY . 281SECTION 8 PAYMENTS FOR SECTION 202 PROJECTS . 300PREPAYMENT AND REFINANCING OF SECTION 202 LOANS FOR SUPPORTIVEHOUSING FOR ELDERLY PERSONS . 301INTERGENERATIONAL HOUSING ASSISTANCE. 304SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES . 307FUNDING FOR MAINTENANCE AND OPERATION OF SUPPORTIVE HOUSING . 317REVISED CONGREGATE HOUSING SERVICES . 318FUNDING FOR SERVICE COORDINATORS AND CONGREGATE SERVICES . 328PET OWNERSHIP . 329HOUSING FOR PERSONS WITH AIDS . 330PART IV—OTHER FEDERAL HOUSING ASSISTANCE. 339AFFORDABLE HOUSING STRATEGIES AND INVESTMENT . 339RENT SUPPLEMENTS . 377SECTION 236 RENTAL ASSISTANCE . 381FLEXIBLE SUBSIDY PROGRAM . 390MULTIFAMILY HOUSING PLANNING AND INVESTMENT STRATEGIES . 396TENANT PARTICIPATION IN MULTIFAMILY HOUSING . 401ANTI-DRUG ABUSE ACT OF 1988 . 402STANDARDS FOR RESIDENCY, OCCUPANCY PREFERENCES, AND SERVICECOORDINATORS IN FEDERALLY ASSISTED HOUSING . 408SAFETY AND SECURITY IN PUBLIC AND ASSISTED HOUSING. 416REMOVAL OF REGULATORY BARRIERS TO AFFORDABLE HOUSING. 419DISPOSITION OF HUD-OWNED PROJECTS . 422HOUSING COUNSELING . 435HOME INSPECTION COUNSELING . 448PREPURCHASE COUNSELING DEMONSTRATION . 449LEGAL ASSISTANCE FOR FORECLOSURE-RELATED ISSUES . 450STATE HOUSING FINANCE AGENCIES . 451ii

AMENDMENTS AFFECTING TENANT RENTS . 454TREATMENT OF HOUSING ASSISTANCE AS INCOME . 456TREATMENT OF PAYMENTS MADE TO NAZI PERSECUTION VICTIMS . 457FINANCIAL ASSISTANCE IN IMPACTED AREAS . 459RESTRICTIONS ON PUBLIC BENEFITS FOR ALIENS . 460USE OF ASSISTED HOUSING BY ALIENS . 475IMMIGRATION REFORM . 480SOLAR ENERGY SYSTEMS IN ASSISTED HOUSING . 482ENERGY CONSERVING IMPROVEMENTS FOR ASSISTED HOUSING . 483ENERGY EFFICIENCY PLAN . 484LOW-INCOME HOUSING PRESERVATION AND RESIDENT HOMEOWNERSHIPACT OF 1990 . 485TRANSITION AND OTHER LOW-INCOME HOUSING PRESERVATION PROVISIONS. 509PRESERVING EXISTING HOUSING INVESTMENT . 511ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS . 513SURPLUS PROPERTY DISPOSITION FOR LOW-INCOME HOUSING USE . 516RENTAL ASSISTANCE DEMONSTRATION PROGRAM . 521ENERGY AND WATER CONSERVATION IMPROVEMENTS AT. 524MULTIFAMILY RESIDENTIAL UNITS . 524PART V—HOMEOWNERSHIP ASSISTANCE . 527NATIONAL HOMEOWNERSHIP TRUST . 527HOPE HOMEOWNERSHIP PROGRAMS . 532SECTION 235 HOMEOWNERSHIP ASSISTANCE . 547ENTERPRISE ZONE HOMEOWNERSHIP OPPORTUNITY GRANTS . 557ELIGIBILITY UNDER FIRST-TIME HOMEBUYER PROGRAMS . 559PART VI—HOUSING FOR THE HOMELESS . 561MCKINNEY-VENTO HOMELESS ASSISTANCE ACT . 561USE FOR THE HOMELESS OF PROPERTY AT CLOSED DEFENSE BASES . 604FHA SINGLE FAMILY PROPERTY DISPOSITION FOR HOMELESS USE. 618PART VII—HOUSING FOR NATIVE AMERICANS AND NATIVE HAWAIIANS . 619NATIVE AMERICAN HOUSING ASSISTANCE . 619WAIVER OF MATCHING FUNDS REQUIREMENTS FOR INDIAN HOUSINGPROGRAMS . 664LOAN GUARANTEES FOR INDIAN AND NATIVE HAWAIIAN HOUSING. 665AUTHORITY TO PROVIDE HOUSING ASSISTANCE TO STATE OF HAWAII . 676LANDS TITLE REPORT COMMISSION . 677PART VIII—MORTGAGE INSURANCE, RELIEF, AND FORECLOSURE ANDCREDIT ENHANCEMENT FOR HOUSING . 679NATIONAL HOUSING ACT . 679iii

ESTIMATES OF USE OF INSURING AUTHORITY . 817RIGHT OF REDEMPTION IN CASE OF SUBORDINATE LIENS OF FHA—RESALESOF FHA FINANCED HOUSING . 818FHA ASSET DISPOSITION . 819BUILDERS WARRANTY—FHA HOUSING . 821PENALTIES FOR FRAUD . 822INSURANCE OF BMIR AND SECTION 202 MORTGAGES UNDER SECTION 236 . 824RESIDENTIAL WATER TREATMENT . 825DEREGULATION OF RENTS . 826DELEGATED PROCESSING. 827UP-FRONT MORTGAGE INSURANCE PREMIUM . 828STUDY OF BARRIERS TO MORTGAGES FOR HEALTH CENTERS . 829EMERGENCY MORTGAGE RELIEF . 830REPORT ON DELINQUENCIES AND FORECLOSURES. 834DEFAULT AND FORECLOSURE DATABASE . 835WARNINGS TO HOMEOWNERS OF FORECLOSURE RESCUE SCAMS . 836NONJUDICIAL FORECLOSURE OF MORTGAGES FOR SINGLE FAMILY HOUSING. 837FORECLOSURE OF MORTGAGES FOR MULTIFAMILY HOUSING . 846ENERGY EFFICIENT MORTGAGES PILOT PROGRAM . 854MULTIFAMILY HOUSING FINANCE IMPROVEMENT PILOT PROGRAMS . 856PREVENTING MORTGAGE DEFAULTS ON INSURED MULTIFAMILY HOUSINGPROJECTS. 865MULTIFAMILY MORTGAGE RESOLUTION PROGRAM . 866INCREASING ACCESS AND UNDERSTANDING OF ENERGY EFFICIENTMORTGAGES . 867PART IX—SECONDARY MARKET FOR MORTGAGE LOANS . 869FEDERAL NATIONAL MORTGAGE ASSOCIATION AND GOVERNMENTNATIONAL MORTGAGE ASSOCIATION . 869GNMA ADMINISTRATIVE EXPENSES . 890FNMA AND GNMA—PARTITION . 891FNMA MORTGAGE-BACKED SECURITIES PROGRAM PROPOSAL . 892FEDERAL HOUSING ENTERPRISES FINANCIAL SAFETY . 893PART X—REGULATORY PROGRAMS . 907SETTLEMENT COSTS FOR FHA AND VA . 907MANUFACTURED HOME STANDARDS. 908LEAD-BASED PAINT PREVENTION . 928RESIDENTIAL LEAD-BASED PAINT HAZARD REDUCTION ACT OF 1992 . 933ADJUSTABLE RATE MORTGAGE CAPS . 943RECOMMENDED POLICY ON RADON . 944SEISMIC SAFETY PROPERTY STANDARDS . 946FIRE SAFETY SYSTEMS IN FEDERALLY ASSISTED HOUSING . 947HOMEOWNERS PROTECTION ACT OF 1998 . 950iv

PART XI—ORGANIZATION AND ADMINISTRATION OF DEPARTMENT OFHOUSING AND URBAN DEVELOPMENT . 959DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ACT . 959HUD ACCOUNTABILITY AND APPLICANT DISCLOSURES . 972SUBSIDY LAYERING REVIEW . 976ENVIRONMENTAL REVIEW REQUIREMENTS FOR HUD SPECIAL PROJECTS . 977PERFORMANCE GOALS FOR HUD . 979COORDINATION OF HUD PROGRAMS WITH LOW-INCOME HOUSING TAXCREDITS . 980RESEARCH AND DEVELOPMENT PROGRAMS. 982ADMINISTRATIVE AND MISCELLANEOUS PROVISIONS . 986SPECIAL ASSISTANT COMMISSIONER FOR COOPERATIVE HOUSING . 988HUD ANNUAL REPORT . 989ANNUAL REPORT ON CHARACTERISTICS OF FAMILIES IN HUD-ASSISTEDHOUSING . 990SEMIANNUAL REPORT ON CONTRACTS . 991ANNUAL REPORT ON ASSISTED UNITS UNDER LEASE . 992ELIMINATION OF REPORTING REQUIREMENTS . 993IMPROVED ARCHITECTURAL DESIGN . 995PAPERWORK REDUCTION . 996RECORDS AND AUDITS REQUIRED IN CONNECTION WITH LOANS, ADVANCES,GRANTS, OR CONTRIBUTIONS (BYRD AMENDMENT) . 997FRAUD AND FALSE STATEMENTS . 998OBSTRUCTION OF JUSTICE . 1000PREVENTING FRAUD AND ABUSE . 1001INTERNATIONAL HOUSING AND URBAN DEVELOPMENT . 1008SECTION 3 ECONOMIC OPPORTUNITIES FOR LOW-INCOME PERSONS . 1009NOTICE AND COMMENT FOR DEMONSTRATION PROGRAMS . 1011USE OF AMERICAN MATERIALS AND PRODUCTS . 1012REVOLVING FUND FOR LIQUIDATING PROGRAMS . 1013PUBLIC NOTICE AND COMMENT RULEMAKING . 1014HUD HEADQUARTERS BUILDING . 1015HUD CHIEF FINANCIAL OFFICER . 1016HUD NOTICE OF FUNDING AVAILABILITY (NOFA) PROVISIONS . 1018SECTION 236 INTEREST REDUCTION PAYMENTS ELECTRONIC INVOICES . 1019USE OF FHA SAVINGS FOR IMPROVEMENTS IN FHA TECHNOLOGIES,PROCEDURES, PROCESSES, PROGRAM PERFORMANCE, STAFFING, ANDSALARIES . 1020PRESERVATION APPROVAL PROCESS IMPROVEMENT . 1021PART XII—OTHER RELATED PROVISIONS OF LAW . 1023FAIR HOUSING ACT . 1023FAIR HOUSING INITIATIVES PROGRAM . 1040FEDERAL DEPOSIT INSURANCE CORPORATION AFFORDABLE HOUSINGPROGRAM . 1044v

NATIONAL INSTITUTE OF BUILDING SCIENCES . 1055NATIONAL HOUSING PARTNERSHIPS . 1060CONDOMINIUM AND COOPERATIVE CONVERSION PROTECTION AND ABUSERELIEF . 1064WAGE RATE REQUIREMENTS FOR LABORERS AND MECHANICS . 1071TRANSFER OF SURPLUS REAL PROPERTY FOR HOUSING . 1075LIMITATION ON WITHHOLDING OR CONDITIONING OF ASSISTANCE. 1076TREATMENT OF OCCUPANCY STANDARDS . 1077MEDIAN AREA INCOME . 1078SOLAR ASSISTANCE FINANCING ENTITY . 1079GUARANTEES FOR CHURCH ARSON RECOVERY LOANS . 1080HOUSING ASSISTANCE COUNCIL . 1081HOUSING PROTECTIONS FOR VICTIMS OF DOMESTIC VIOLENCE, DATINGVIOLENCE, SEXUAL ASSAULT, AND STALKING . 1083WORKFORCE DEVELOPMENT . 1089PROTECTING TENANTS AT FORECLOSURE . 1101RELOCATION ASSISTANCE . 1102APPENDICES . 1115APPENDIX 1: LIST OF HOUSING-RELATED LAWS PASSED FROM 1995-2019 . 1115APPENDIX 2: INDEX OF UNITED STATES CODE SECTIONS INCLUDED IN THISCOMPILATION . 1123APPENDIX 3: INDEX OF STATUTES INCLUDED IN THIS COMPILATION . 1129vi

HOUSING ACT OF 1949Sec. 2. [42 U.S.C. 1441]NATIONAL HOUSING GOALSHOUSING ACT OF 1949[Public Law 171, 81st Congress; 63 Stat. 413; 42 U.S.C. 1441]Sec. 2. [42 U.S.C. 1441]CONGRESSIONAL DECLARATION OF NATIONAL HOUSING POLICY.The Congress hereby declares that the general welfare and security of the Nation and the health and livingstandards of its people require housing production and related community development sufficient to remedy theserious housing shortage, the elimination of substandard and other inadequate housing through the clearance ofslums and blighted areas, and the realization as soon as feasible of the goal of a decent home and a suitable livingenvironment for every American family, thus contributing to the development and redevelopment of communitiesand to the advancement of the growth, wealth, and security of the Nation. The Congress further declares that suchproduction is necessary to enable the housing industry to make its full contribution toward an economy of maximumemployment, production, and purchasing power. The policy to be followed in attaining the national housingobjective hereby established shall be: (1) private enterprise shall be encouraged to serve as large a part of the totalneed as it can; (2) governmental assistance shall be utilized where feasible to enable private enterprise to serve moreof the total need; (3) appropriate local public bodies shall be encouraged and assisted to undertake positive programsof encouraging and assisting the development of well-planned, integrated residential neighborhoods, thedevelopment and redevelopment of communities, and the production, at lower costs, of housing of sound standardsof design, construction, livability, and size for adequate family life; (4) governmental assistance to eliminatesubstandard and other inadequate housing through the clearance of slums and blighted areas, to facilitate communitydevelopment and redevelopment, and to provide adequate housing for urban and rural nonfarm families withincomes so low that they are not being decently housed in new or existing housing shall be extended to thoselocalities which estimate their own needs and demonstrate that these needs are not being met through reliance solelyupon private enterprise, and without such aid; and (5) governmental assistance for decent, safe, and sanitary farmdwellings and related facilities shall be extended where the farm owner demonstrates that he lacks sufficientresources to provide such housing on his own account and is unable to secure necessary credit for such housing fromother sources on terms and conditions which he could reasonably be expected to fulfill. The Department of Housingand Urban Development and any other departments or agencies of the Federal Government having powers,functions, or duties with respect to housing, shall exercise their powers, functions or duties under this or any otherlaw, consistently with the national housing policy declared by this Act and in such manner as will facilitate sustainedprogress in attaining the national housing objective hereby established, and in such manner as will encourage andassist (1) the production of housing of sound standards of design, construction, livability, and size for adequatefamily life; (2) the reduction of the costs of housing without sacrifice of such sound standards; (3) the use of newdesigns, materials, techniques, and methods in residential construction, the use of standardized dimensions andmethods of assembly of home-building materials and equipment, and the increase of efficiency in residentialconstruction and maintenance; (4) the development of well-planned, integrated, residential neighborhoods and thedevelopment and redevelopment of communities; and (5) the stabilization of the housing industry at a high annualvolume of residential construction.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ACT[Public Law 89-174; 79 Stat. 667; 42 U.S.C. 3531]Sec. 2. [42 U.S.C. 3531]CONGRESSIONAL DECLARATION OF PURPOSE.The Congress hereby declares that the general welfare and security of the Nation and the health and livingstandards of our people require, as a matter of national purpose, sound development of the Nation’s communitiesand metropolitan areas in which the vast majority of its people live and work.To carry out such purpose, and in recognition of the increasing importance of housing and urbandevelopment in our national life, the Congress finds that establishment of an executive department is desirable to1

Sec. 2. [12 U.S.C. 1701t]HOUSING AND URBAN DEVELOPMENT ACT OF 1968achieve the best administration of the principal programs of the Federal Government which provide assistance forhousing and for the development of the Nation’s communities; to assist the President in achieving maximumcoordination of the various Federal activities which have a major effect upon urban community, suburban, ormetropolitan development; to encourage the solution of problems of housing, urban development, and masstransportation through State, county, town, village, or other local and private action, including promotion ofinterstate, regional, and metropolitan cooperation; to encourage the maximum contributions that may be made byvigorous private homebuilding and mortgage lending industries to housing, urban development, and the nationaleconomy; and to provide for full and appropriate consideration, at the national level, of the needs and interests of theNation’s communities and of the people who live and work in them.HOUSING AND URBAN DEVELOPMENT ACT OF 1968[Public Law 90-448; 82 Stat. 476, 601; 12 U.S.C. 1701t and 42 U.S.C. 1441a et seq.]Sec. 2. [12 U.S.C. 1701t]CONGRESSIONAL AFFIRMATION OF NATIONAL GOAL OF DECENT HOMES AND SUITABLELIVING ENVIRONMENT FOR AMERICAN FAMILIES.The Congress affirms the national goal, as set forth in section 2 of the Housing Act of 1949, of “a decenthome and a suitable living environment for every American family.”The Congress finds that this goal has not been fully realized for many of the Nation’s lower incomefamilies; that this is a matter of grave national concern; and that there exist in the public and private sectors of theeconomy the resources and capabilities necessary to the full realization of this goal.The Congress declares that in the administration of those housing programs authorized by this Act whichare designed to assist families with incomes so low that they could not otherwise decently house themselves, and ofother Government programs designed to assist in the provision of housing for such families, the highest priority andemphasis should be given to meeting the housing needs of those families for which the national goal has not becomea reality; and in the carrying out of such programs there should be the fullest practicable utilization of the resourcesand capabilities of private enterp

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