42 U.S.C. § 1437b — Loans and commitments to make loans

Page 4546 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437a–1 of 1965 [12 U.S.C. 1701s], section 236(f)(2) of the National Housing Act [12 U.S.C. 1715z–1(f)(2)], or section 23 of the United States Housing Act of 1937 [section 1421b of this title] (as in effect before the date of the enactment of the Housing and Community Development Act of 1974 [Aug. 22, 1974]) to assistance under section 8 of the United States Housing Act of 1937, any increase in rent payments or contributions resulting from such conver- sion, and from the amendments made by this section of any tenant benefiting from such assistance who is sixty-two years of age or older may not exceed 10 per centum per annum. ‘‘(B) In the case of any such conversion of assistance occurring on or after October 1, 1981, and before the date of the enactment of this section [Nov. 30, 1983], the rental payments due after such date of enactment by any tenant benefiting from such assistance who was sixty-two years of age or older on the date of such con- version shall be computed as if the tenant’s rental pay- ment or contribution had, on the date of conversion, been the lesser of the actual rental payment or con- tribution required, or 25 per centum of the tenant’s in- come. ‘‘(5) The limitations on increases in rent contained in paragraphs (1)(B), (2), (3), and (4) shall remain in effect and may not be changed or superseded except by an- other provision of law which amends this subsection. ‘‘(6) As used in this subsection, the term ‘contribu- tion’ means an amount representing 30 per centum of a tenant’s monthly adjusted income, 10 per centum of the tenant’s monthly income, or the designated amount of welfare assistance, whichever amount is used to deter- mine the monthly assistance payment for the tenant under section 3(a) of the United States Housing Act of 1937 [subsec. (a) of this section]. ‘‘(7) The provisions of subsections (a) through (h) of section 322 of the Housing and Community Develop- ment Amendments of 1981 shall be implemented and fully applicable to all affected tenants no later than five years following the date of enactment of such amendments [Aug. 13, 1981], except that the Secretary may extend the time for implementation if the Sec- retary determines that full implementation would re- sult in extraordinary hardship for any class of ten- ants.’’ Prior provisions for determining rent payable by ten- ants occupying assisted housing under and authorizing delayed application or staged implementation of provi- sions amended by section 322 of Pub. L. 97–35 were con- tained in Pub. L. 97–35, title III, § 322(i), Aug. 13, 1981, 95 Stat. 404, which was repealed by Pub. L. 98–181, title I [title II, § 206(e)], Nov. 30, 1983, 97 Stat. 1181. ESTABLISHMENT OF INCREASED MONTHLY RENTAL CHARGE FOR FAMILY OCCUPYING LOW-INCOME HOUS- ING UNIT; ADJUSTMENT FACTORS Pub. L. 93–383, title II, § 202, Aug. 22, 1974, 88 Stat. 667, provided that: ‘‘To the extent that section 3(1) of the United States Housing Act of 1937, as amended by sec- tion 201(a) of this Act [par. (1) of this section], would require the establishment of an increased monthly rental charge for any family which occupies a low-in- come housing unit as of the effective date of such sec- tion 3(1) (other than by reason of the provisions relat- ing to welfare assistance payments) [see Effective Date note set out above], the required adjustment shall be made, in accordance with regulations of the Secretary, as follows: (A) the first adjustment shall not exceed $5 and shall become effective as of the month following the month of the first review of the family’s income pursuant to section 6(c)(2) of such Act [section 1437d(c)(2) of this title] which occurs at least six months after the effective date of such section 3(1), and (B) subsequent adjustments, each of which shall not ex- ceed $5, shall be made at six-month intervals over whatever period is necessary to effect the full required increase in the family’s rental charge.’’ Executive Documents TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS For termination of Trust Territory of the Pacific Is- lands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions. § 1437a–1. Repealed. Pub. L. 105–276, title V, § 582(a)(1), Oct. 21, 1998, 112 Stat. 2643 Section, Pub. L. 101–625, title V, § 519, Nov. 28, 1990, 104 Stat. 4202, authorized public housing rent waiver for po- lice officers. See section 1437a(a)(4) of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective and applicable beginning upon Oct. 1, 1999, except as otherwise provided, with provision that Secretary may implement the repeal before such date, and with savings provision, see section 503 of Pub. L. 105–276, set out as an Effective Date of 1998 Amendment note under section 1437 of this title. § 1437b. Loans and commitments to make loans for low-income housing projects (a) Authority of Secretary; interest rates; repay- ment date; use as security for obligations of public housing agency The Secretary may make loans or commit- ments to make loans to public housing agencies to help finance or refinance the development, acquisition, or operation of low-income housing projects by such agencies. Any contract for such loans and any amendment to a contract for such loans shall provide that such loans shall bear in- terest at a rate specified by the Secretary which shall not be less than a rate determined by the Secretary of the Treasury taking into consider- ation the current average market yield on out- standing marketable obligations of the United States with remaining periods to maturity com- parable to the average maturities of such loans, plus one-eighth of 1 per centum. Such loans shall be secured in such manner and shall be re- paid within such period not exceeding forty years, or not exceeding forty years from the date of the bonds evidencing the loan, as the Secretary may determine. The Secretary may require loans or commitments to make loans under this section to be pledged as security for obligations issued by a public housing agency in connection with a low-income housing project. (b) Issuance of obligations by Secretary; limita- tion on amounts; forms and denominations; terms and conditions; purchase, establish- ment of maturities and rates of interest, and sale by Secretary of the Treasury The Secretary may issue and have outstanding at any one time notes and other obligations for purchase by the Secretary of the Treasury in an amount which will not, unless authorized by the President, exceed $1,500,000,000. For the purpose of determining obligations incurred to make loans pursuant to this chapter against any limi- tation otherwise applicable with respect to such loans, the Secretary shall estimate the max- imum amount to be loaned at any one time pur- suant to loan agreements then outstanding with public housing agencies. Such notes or other ob- ligations shall be in such forms and denomina- Page 4547 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437c tions and shall be subject to such terms and con- ditions as may be prescribed by the Secretary with the approval of the Secretary of the Treas- ury. The notes or other obligations issued under this subsection shall have such maturities and bear such rate or rates of interest as shall be de- termined by the Secretary of the Treasury. The Secretary of the Treasury is authorized and di- rected to purchase any notes or other obliga- tions of the Secretary issued hereunder and for such purpose is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31, and the purposes for which securities may be issued under such chapter are extended to in- clude any purchases of such obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this section. All redemptions, pur- chases, and sales by the Secretary of the Treas- ury of such notes or other obligations shall be treated as public debt transactions of the United States. (c) Public and Indian housing financing reforms (1) At such times as the Secretary may deter- mine, and in accordance with such accounting and other procedures as the Secretary may pre- scribe, each loan made by the Secretary under subsection (a) that has any principal amount outstanding or any interest amount outstanding or accrued shall be forgiven; and the terms and conditions of any contract, or any amendment to a contract, for such loan with respect to any promise to repay such principal and interest shall be canceled. Such cancellation shall not affect any other terms and conditions of such contract, which shall remain in effect as if the cancellation had not occurred. This paragraph shall not apply to any loan the repayment of which was not to be made using annual con- tributions, or to any loan all or part of the pro- ceeds of which are due a public housing agency from contractors or others. (2)(A) On April 7, 1986, each note or other obli- gation issued by the Secretary to the Secretary of the Treasury pursuant to subsection (b), to- gether with any promise to repay the principal and unpaid interest that has accrued on each note or obligation, shall be forgiven; and any other term or condition specified by each such obligation shall be canceled. (B) On September 30, 1986, and on any subse- quent September 30, each such note or other ob- ligation issued by the Secretary to the Sec- retary of the Treasury pursuant to subsection (b) during the fiscal year ending on such date, together with any promise to repay the prin- cipal and unpaid interest that has accrued on each note or obligation, shall be forgiven; and any other term or condition specified by each such obligation shall be canceled. (3) Any amount of budget authority (and con- tract authority) that becomes available during any fiscal year as a result of the forgiveness of any loan, note, or obligation under this sub- section shall be rescinded. (Sept. 1, 1937, ch. 896, title I, § 4, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 656; amended Pub. L. 97–35, title III, § 322(c), Aug. 13, 1981, 95 Stat. 402; Pub. L. 98–479, title II, § 203(b)(1), Oct. 17, 1984, 98 Stat. 2229; Pub. L. 99–272, title III, § 3004, Apr. 7, 1986, 100 Stat. 102; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; Pub. L. 101–625, title V, § 572(2), Nov. 28, 1990, 104 Stat. 4236.) Editorial Notes PRIOR PROVISIONS A prior section 4 of act Sept. 1, 1937, ch. 896, 50 Stat. 889, as amended, provided for assistance of officers, etc., of other agencies and transfer of property to the Au- thority and was classified to section 1404 of this title, prior to the general revision of this chapter by Pub. L. 93–383. AMENDMENTS 1990—Subsec. (a). Pub. L. 101–625 substituted ‘‘low-in- come housing’’ for ‘‘lower income housing’’ wherever appearing. 1986—Subsec. (c). Pub. L. 99–272 added subsec. (c). 1984—Subsec. (b). Pub. L. 98–479 substituted ‘‘chapter 31 of title 31’’ for ‘‘the Second Liberty Bond Act, as amended’’ and ‘‘such chapter’’ for ‘‘such Act’’. 1981—Subsec. (a). Pub. L. 97–35 substituted reference to lower income for reference to low-income in two places. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see section 371 of Pub. L. 97–35, set out as an Effective Date note under section 3701 of Title 12, Banks and Banking. CARRYOVER OF AMOUNTS OF BUDGET AUTHORITY; AVAILABILITY AS APPROPRIATION OF FUNDS FOR GRANTS Pub. L. 99–500, § 101(g) [H.R. 5313, title I], Oct. 18, 1986, 100 Stat. 1783–242, and Pub. L. 99–591, § 101(g) [H.R. 5313, title I], Oct. 30, 1986, 100 Stat. 3341–242; Pub. L. 100–202, § 106, Dec. 22, 1987, 101 Stat. 1329–433, provided in part: ‘‘That the budget authority obligated under contracts for annual contributions shall be increased above amounts heretofore provided in appropriations Acts by $7,805,668,000: Provided further, That any part of the amount of the increase in budget authority provided for in the immediately foregoing proviso that is avail- able under this Act for public housing development and acquisition costs or which is to be used for amendments for such costs, shall be available as an appropriation of funds, to remain available until expended, for grants, which are hereby authorized in lieu of loans under sec- tion 4(a) of the United States Housing Act of 1937 (42 U.S.C. 1437b), and which the Secretary may make on substantially the same terms (except for repayment un- less repayment is a properly imposed sanction) as those heretofore set forth in annual contributions contracts for loans and annual contributions: Provided further, That during 1987 and thereafter, any amounts of budget authority which are carried over from a prior year, or which are otherwise available for obligation, and which are available for public housing development and acqui- sition costs, together with any amounts of budget au- thority which are to be used for amendments for such costs, in accordance with any Act, shall also be made available as an appropriation of funds for grants, under the same terms as those applying under the imme- diately preceding proviso’’. § 1437c. Contributions for low-income housing projects (a) Contract authorization; amounts; use as secu- rity for obligations of public housing agency; use of existing structures (1) The Secretary may make annual contribu- tions to public housing agencies to assist in