Sec. 1701x. Assistance with respect to housing for low- and moderate-income familiesUnited 
State Code 
  TITLE 12 - BANKS AND BANKING 
    CHAPTER 13 - NATIONAL HOUSING 


U.S. Code as of: 01/26/1998
Sec. 1701x. Assistance with respect to housing for low- and moderate-income 
families
(a) Authorization to provide information, advice, and technical
    assistance; scope of assistance; authorization of
    appropriations
  (1) The Secretary is authorized to provide, or contract with
public or private organizations to provide, information, advice,
and technical assistance, including but not limited to -
    (i) the assembly, correlation, publication, and dissemination
  of information with respect to the construction, rehabilitation,
  and operation of low- and moderate-income housing;
    (ii) the provision of advice and technical assistance to public
  bodies or to nonprofit or cooperative organizations with respect
  to the construction, rehabilitation, and operation of low- and
  moderate-income housing, including assistance with respect to
  self-help and mutual self-help programs;
    (iii) counseling and advice to tenants and homeowners with
  respect to property maintenance, financial management, and such
  other matters as may be appropriate to assist them in improving
  their housing conditions and in meeting the responsibilities of
  tenancy or homeownership; and
    (iv) the provision of technical assistance to communities,
  particularly smaller communities, to assist such communities in
  planning, developing, and administering Community Development
  Programs pursuant to title I of the Housing and Community
  Development Act of 1974 (42 U.S.C. 5301 et seq.).
  (2) The Secretary (A) shall provide the services described in
clause (iii) of paragraph (1) for homeowners assisted under section
235 of the National Housing Act (12 U.S.C. 1715z); (B) shall, in
consultation with the Secretary of Agriculture, provide such
services for borrowers who are first-time homebuyers with
guaranteed loans under section 502(h) of the Housing Act of 1949
(42 U.S.C. 1472(h)); and (C) may provide such services for other
owners of single family dwelling units insured under title II of
the National Housing Act (12 U.S.C. 1707 et seq.) or guaranteed or
insured under chapter 37 of title 38. For purposes of this
paragraph and clause (iii) of paragraph (1), the Secretary may
provide the services described in such clause directly or may enter
into contracts with, make grants to, and provide other types of
assistance to private or public organizations with special
competence and knowledge in counseling low- and moderate-income
families to provide such services.
  (3) There is authorized to be appropriated for the purposes of
this subsection, without fiscal year limitation, such sums as may
be necessary; except that for such purposes there are authorized to
be appropriated $6,025,000 for fiscal year 1993 and $6,278,050 for
fiscal year 1994. Of the amounts appropriated for each of fiscal
years 1993 and 1994, up to $500,000 shall be available for use for
counseling and other activities in connection with the
demonstration program under section 152 of the Housing and
Community Development Act of 1992. Any amounts so appropriated
shall remain available until expended.
(b) Loans to nonprofit organizations or public housing agencies;
    purpose and terms; repayment; authorization of appropriations;
    deposit of appropriations in Low and Moderate Income Sponsor
    Fund
  (1) The Secretary is authorized to make loans to nonprofit
organizations or public housing agencies for the necessary
expenses, prior to construction, in planning, and obtaining
financing for, the rehabilitation or construction of housing for
low or moderate income families under section 235 of the National
Housing Act (12 U.S.C. 1715z) or any other federally assisted
program.  Such loans shall be made without interest and shall not
exceed 80 per centum of the reasonable costs expected to be
incurred in planning, and in obtaining financing for, such housing
prior to the availability of financing, including, but not limited
to, preliminary surveys and analyses of market needs, preliminary
site engineering and architectural fees, site acquisition,
application and mortgage commitment fees, and construction loan
fees and discounts.  The Secretary shall require repayment of loans
made under this subsection, under such terms and conditions as he
may require, upon completion of the project or sooner, and may
cancel any part or all of a loan if he determines that it cannot be
recovered from the proceeds of any permanent loan made to finance
the rehabilitation or construction of the housing.
  (2) The Secretary shall determine prior to the making of any loan
that the nonprofit organization or public housing agency meets such
requirements with respect to financial responsibility and stability
as he may prescribe.
  (3) There are authorized to be appropriated for the purposes of
this subsection not to exceed $7,500,000 for the fiscal year ending
June 30, 1969, and not to exceed $10,000,000 for the fiscal year
ending June 30, 1970. Any amounts so appropriated shall remain
available until expended, and any amounts authorized for any fiscal
year under this paragraph but not appropriated may be appropriated
for any succeeding fiscal year.
  (4) All funds appropriated for the purposes of this subsection
shall be deposited in a fund which shall be known as the Low and
Moderate Income Sponsor Fund, and which shall be available without
fiscal year limitation and be administered by the Secretary as a
revolving fund for carrying out the purposes of this subsection.
Sums received in repayment of loans made under this subsection
shall be deposited in such fund.
(c) Grants for homeownership counseling organizations
  (1) In general
    The Secretary of Housing and Urban Development may make grants
  -
      (A) to nonprofit organizations experienced in the provision
    of homeownership counseling to enable the organizations to
    provide homeownership counseling to eligible homeowners; and
      (B) to assist in the establishment of nonprofit homeownership
    counseling organizations.
  (2) Program requirements
    (A) Applications for grants under this subsection shall be
  submitted in the form, and in accordance with the procedures,
  that the Secretary requires.
    (B) The homeownership counseling organizations receiving
  assistance under this subsection shall use the assistance only to
  provide homeownership counseling to eligible homeowners.
    (C) The homeownership counseling provided by homeownership
  counseling organizations receiving assistance under this
  subsection shall include counseling with respect to -
      (i) financial management;
      (ii) available community resources, including public
    assistance programs, mortgage assistance programs, home repair
    assistance programs, utility assistance programs, food
    programs, and social services; and
      (iii) employment training and placement.
  (3) Availability of homeownership counseling
    The Secretary shall take any action that is necessary -
      (A) to ensure the availability throughout the United States
    of homeownership counseling from homeownership counseling
    organizations receiving assistance under this subsection, with
    priority to areas that -
        (i) are experiencing high rates of home foreclosure and any
      other indicators of homeowner distress determined by the
      Secretary to be appropriate;
        (ii) are not already adequately served by homeownership
      counseling organizations; and
        (iii) have a high incidence of mortgages involving
      principal obligations (including such initial service
      charges, appraisal, inspection, and other fees as the
      Secretary shall approve) in excess of 97 percent of the
      appraised value of the properties that are insured pursuant
      to section 203 of the National Housing Act (12 U.S.C. 1709);
      and
      (B) to inform the public of the availability of the
    homeownership counseling.
  (4) Eligibility for counseling
    A homeowner shall be eligible for homeownership counseling
  under this subsection if -
      (A) the home loan is secured by property that is the
    principal residence (as defined by the Secretary) of the
    homeowner;
      (B) the home loan is not assisted under title V of the
    Housing Act of 1949 (42 U.S.C. 1471 et seq.); and
      (C) the homeowner is, or is expected to be, unable to make
    payments, correct a home loan delinquency within a reasonable
    time, or resume full home loan payments due to a reduction in
    the income of the homeowner because of -
        (i) an involuntary loss of, or reduction in, the employment
      of the homeowner, the self-employment of the homeowner, or
      income from the pursuit of the occupation of the homeowner;
      or
        (ii) any similar loss or reduction experienced by any
      person who contributes to the income of the homeowner.
  An applicant for a mortgage shall be eligible for homeownership
  counseling under this subsection if the applicant is a first-time
  homebuyer who meets the requirements of section 12852(b)(1) of
  title 42 and the mortgage involves a principal obligation
  (including such initial service charges, appraisal, inspection,
  and other fees as the Secretary shall approve) in excess of 97
  percent of the appraised value of the property and is to be
  insured pursuant to section 203 of the National Housing Act (12
  U.S.C. 1709).
  (5) Notification of availability of homeownership counseling
    (A) Notification of availability of homeownership counseling
      (i) Requirement
        Except as provided in subparagraph (C), the creditor of a
      loan (or proposed creditor) shall provide notice under clause
      (ii) to (I) any eligible homeowner who fails to pay any
      amount by the date the amount is due under a home loan, and
      (II) any applicant for a mortgage described in paragraph (4).
      (ii) Content
        Notification under this subparagraph shall -
          (I) notify the homeowner or mortgage applicant of the
        availability of any homeownership counseling offered by the
        creditor (or proposed creditor);
          (II) if provided to an eligible mortgage applicant, state
        that completion of a counseling program is required for
        insurance pursuant to section 203 of the National Housing
        Act (12 U.S.C. 1709); and
          (III) notify the homeowner or mortgage applicant of the
        availability of homeownership counseling provided by
        nonprofit organizations approved by the Secretary and
        experienced in the provision of homeownership counseling,
        or provide the toll-free telephone number described in
        subparagraph (D)(i).
    (B) Deadline for notification
      The notification required in subparagraph (A) shall be made -
        (i) in a manner approved by the Secretary; and
        (ii) before the expiration of the 45-day period beginning
      on the date on which the failure referred to in such
      subparagraph occurs.
    (C) Exceptions
      Notification under subparagraph (A) shall not be required
    with respect to any loan -
        (i) insured or guaranteed under chapter 37 of title 38; or
        (ii) for which the eligible homeowner pays the amount
      overdue before the expiration of the 45-day period under
      subparagraph (B)(ii).
    (D) Administration and compliance
      The Secretary shall, to the extent of amounts approved in
    appropriation Acts, enter into an agreement with an appropriate
    private entity under which the entity will -
        (i) operate a toll-free telephone number through which any
      eligible homeowner can obtain a list of nonprofit
      organizations, which shall be updated annually, that -
          (I) are approved by the Secretary and experienced in the
        provision of homeownership counseling; and
          (II) serve the area in which the residential property of
        the homeowner is located;
        (ii) monitor the compliance of creditors with the
      requirements of subparagraphs (A) and (B); and
        (iii) report to the Secretary not less than annually
      regarding the extent of compliance of creditors with the
      requirements of subparagraphs (A) and (B).
    (E) Report
      The Secretary shall submit a report to the Congress not less
    than annually regarding the extent of compliance of creditors
    with the requirements of subparagraphs (A) and (B) and the
    effectiveness of the entity monitoring such compliance.  The
    Secretary shall also include in the report any recommendations
    for legislative action to increase the authority of the
    Secretary to penalize creditors who do not comply with such
    requirements.
  (6) Definitions
    For purposes of this subsection:
      (A) The term ''creditor'' means a person or entity that is
    servicing a home loan on behalf of itself or another person or
    entity.
      (B) The term ''eligible homeowner'' means a homeowner
    eligible for counseling under paragraph (4).
      (C) The term ''home loan'' means a loan secured by a mortgage
    or lien on residential property.
      (D) The term ''homeowner'' means a person who is obligated
    under a home loan.
      (E) The term ''residential property'' means a 1-family
    residence, including a 1-family unit in a condominium project,
    a membership interest and occupancy agreement in a cooperative
    housing project, and a manufactured home and the lot on which
    the home is situated.
  (7) Regulations
    The Secretary shall issue any regulations that are necessary to
  carry out this subsection.
  (8) Authorization of appropriations
    There are authorized to be appropriated to carry out this
  section $7,000,000 for fiscal year 1993 and $7,294,000 for fiscal
  year 1994, of which amounts $1,000,000 shall be available in each
  such fiscal year to carry out paragraph (5)(D). Any amount
  appropriated under this subsection shall remain available until
  expended.
  (9) Termination
    The provisions of this subsection shall not be effective after
  September 30, 1994.
(d) Prepurchase and foreclosure-prevention counseling demonstration
  (1) Purposes
    The purpose of this subsection is -
      (A) to reduce defaults and foreclosures on mortgage loans
    insured under the Federal Housing Administration single family
    mortgage insurance program;
      (B) to encourage responsible and prudent use of such
    federally insured home mortgages;
      (C) to assist homeowners with such federally insured
    mortgages to retain the homes they have purchased pursuant to
    such mortgages; and
      (D) to encourage the availability and expansion of housing
    opportunities in connection with such federally insured home
    mortgages.
  (2) Authority
    The Secretary of Housing and Urban Development shall carry out
  a program to demonstrate the effectiveness of providing
  coordinated prepurchase counseling and foreclosure-prevention
  counseling to first-time homebuyers and homeowners in avoiding
  defaults and foreclosures on mortgages insured under the Federal
  Housing Administration single family home mortgage insurance
  program.
  (3) Grants
    Under the demonstration program under this subsection, the
  Secretary shall make grants to qualified nonprofit organizations
  under paragraph (4) to enable the organizations to provide
  prepurchase counseling services to eligible homebuyers and
  foreclosure-prevention counseling services to eligible
  homeowners, in counseling target areas.
  (4) Qualified nonprofit organizations
    The Secretary shall select nonprofit organizations to receive
  assistance under the demonstration program under this subsection
  based on the experience and ability of the organizations in
  providing homeownership counseling and their ability to provide
  community-based prepurchase and foreclosure-prevention counseling
  under paragraphs (5) and (6) in a counseling target area.  To be
  eligible for selection under this paragraph, a nonprofit
  organization shall submit an application containing a proposal
  for providing counseling services in the form and manner required
  by the Secretary.
  (5) Prepurchase counseling
    (A) Mandatory participation
      Under the demonstration program, the Secretary shall require
    any eligible homebuyer who intends to purchase a home located
    in a counseling target area and who has applied for (as
    determined by the Secretary) a qualified mortgage (as such term
    is defined in paragraph (9)) on such home that involves a
    downpayment of less than 10 percent of the principal obligation
    of the mortgage, to receive counseling prior to signing of a
    contract to purchase the home.  The counseling shall include
    counseling with respect to -
        (i) financial management and the responsibilities involved
      in homeownership;
        (ii) fair housing laws and requirements;
        (iii) the maximum mortgage amount that the homebuyer can
      afford; and
        (iv) options, programs, and actions available to the
      homebuyer in the event of actual or potential delinquency or
      default.
    (B) Eligibility for counseling
      A homebuyer shall be eligible for prepurchase counseling
    under this paragraph if -
        (i) the homebuyer has applied for a qualified mortgage;
        (ii) the homebuyer is a first-time homebuyer; and
        (iii) the home to be purchased under the qualified mortgage
      is located in a counseling target area.
  (6) Foreclosure-prevention counseling
    (A) Availability
      Under the demonstration program, the Secretary shall make
    counseling available for eligible homeowners who are 60 or more
    days delinquent with respect to a payment under a qualified
    mortgage on a home located within a counseling target area.
    The counseling shall include counseling with respect to
    options, programs, and actions available to the homeowner for
    resolving the delinquency or default.
    (B) Notification of delinquency
      Under the demonstration program, the Secretary shall require
    the creditor of any eligible homeowner who is delinquent (as
    described in subparagraph (A)) to send written notice by
    registered or certified mail within 5 days (excluding
    Saturdays, Sundays, and legal public holidays) after the
    occurrence of such delinquency -
        (i) notifying the homeowner of the delinquency and the
      name, address, and phone number of the counseling
      organization for the counseling target area; and
        (ii) notifying any counseling organization for the
      counseling target area of the delinquency and the name,
      address, and phone number of the delinquent homeowner.
    (C) Coordination with emergency homeownership counseling
        program
      The Secretary may coordinate the provision of assistance
    under subsection (c) of this section with the demonstration
    program under this subsection.
    (D) Eligibility for counseling
      A homeowner shall be eligible for foreclosure-prevention
    counseling under this paragraph if -
        (i) the home owned by the homeowner is subject to a
      qualified mortgage; and
        (ii) such home is located in a counseling target area.
  (7) Scope of demonstration program
    (A) Designation of counseling target areas
      The Secretary shall designate 3 counseling target areas (as
    provided in subparagraph (B)), which shall be located in not
    less than 2 separate metropolitan areas.  The Secretary shall
    provide for counseling under the demonstration program under
    this subsection with respect to only such counseling target
    areas.
    (B) Counseling target areas
      Each counseling target area shall consist of a group of
    contiguous census tracts -
        (i) the population of which is greater than 50,000;
        (ii) which together constitute an identifiable
      neighborhood, area, borough, district, or region within a
      metropolitan area (except that this clause may not be
      construed to exclude a group of census tracts containing
      areas not wholly contained within a single town, city, or
      other political subdivision of a State);
        (iii) in which the average age of existing housing is
      greater than 20 years; and
        (iv) for which (I) the percentage of qualified mortgages on
      homes within the area that are foreclosed exceeds 5 percent
      for the calendar year preceding the year in which the area is
      selected as a counseling target area, or (II) the number of
      qualified mortgages originated on homes in such area in the
      calendar year preceding the calendar year in which the area
      is selected as a counseling target area exceeds 20 percent of
      the total number of mortgages originated on residences in the
      area during such year.
    (C) Mortgage characteristics
      In designating counseling target areas under subparagraph
    (A), the Secretary shall designate at least 1 such area that
    meets the requirements of subparagraph (B)(iv)(I) and at least
    1 such area that meets the requirements of subparagraph
    (B)(iv)(II).
    (D) Expansion of target areas
      The Secretary may expand any counseling target area during
    the term of the demonstration program, if the Secretary
    determines that counseling can be adequately provided within
    such expanded area and the purposes of this subsection will be
    furthered by such expansion.  Any such expansion shall include
    only groups of census tracts that are contiguous to the
    counseling target area expanded and such census tract groups
    shall not be subject to the provisions of subparagraph (B).
    (E) Designation of control areas
      For purposes of determining the effectiveness of counseling
    under the demonstration program, the Secretary shall designate
    3 control areas, each of which shall correspond to 1 of the
    counseling target areas designated under subparagraph (A). Each
    control area shall be located in the metropolitan area in which
    the corresponding counseling target area is located, shall meet
    the requirements of subparagraph (B), and shall be similar to
    such area with respect to size, age of housing stock, median
    income, and racial makeup of the population.  Each control area
    shall also comply with the requirements of subclause (I) or
    (II) of subparagraph (B)(iv), according to the subclause with
    which the corresponding counseling target area complies.
  (8) Evaluation
    Each organization providing counseling under the demonstration
  program under this subsection shall maintain records with respect
  to each eligible homebuyer and eligible homeowner counseled and
  shall provide information with respect to such counseling as the
  Secretary or the Comptroller General may require.
  (9) Definitions
    For purposes of this subsection:
      (A) The term ''control area'' means an area designated by the
    Secretary under paragraph (7)(E).
      (B) The term ''counseling target area'' means an area
    designated by the Secretary under paragraph (7)(A).
      (C) The term ''creditor'' means a person or entity that is
    servicing a loan secured by a qualified mortgage on behalf of
    itself or another person or entity.
      (D) The term ''displaced homemaker'' means an individual who
    -
        (i) is an adult;
        (ii) has not worked full-time, full-year in the labor force
      for a number of years, but has during such years, worked
      primarily without remuneration to care for the home and
      family; and
        (iii) is unemployed or underemployed and is experiencing
      difficulty in obtaining or upgrading employment.
      (E) The term ''downpayment'' means the amount of purchase
    price of home required to be paid at or before the time of
    purchase.
      (F) The term ''eligible homebuyer'' means a homebuyer that
    meets the requirements under paragraph (5)(B).
      (G) The term ''eligible homeowner'' means a homeowner that
    meets the requirements under paragraph (6)(D).
      (H) The term ''first-time homebuyer'' means an individual who
    -
        (i) (and whose spouse) has had no ownership in a principal
      residence during the 3-year period ending on the date of
      purchase of the home pursuant to which counseling is provided
      under this subsection;
        (ii) is a displaced homemaker who, except for owning a
      residence with his or her spouse or residing in a residence
      owned by the spouse, meets the requirements of clause (i); or
        (iii) is a single parent who, except for owning a residence
      with his or her spouse or residing in a residence owned by
      the spouse while married, meets the requirements of clause
      (i).
      (I) The term ''home'' includes any dwelling or dwelling unit
    eligible for a qualified mortgage, and includes a unit in a
    condominium project, a membership interest and occupancy
    agreement in a cooperative housing project, and a manufactured
    home and the lot on which the home is situated.
      (J) The term ''metropolitan area'' means a standard
    metropolitan statistical area as designated by the Director of
    the Office of Management and Budget.
      (K) The term ''qualified mortgage'' means a mortgage on a 1-
    to 4-family home that is insured under title II of the National
    Housing Act (12 U.S.C. 1707 et seq.).
      (L) The term ''Secretary'' means the Secretary of Housing and
    Urban Development.
      (M) The term ''single parent'' means an individual who -
        (i) is unmarried or legally separated from a spouse; and
        (ii)(I) has 1 or more minor children for whom the
      individual has custody or joint custody; or
        (II) is pregnant.
  (10) Regulations
    The Secretary may issue any regulations necessary to carry out
  this subsection.
  (11) Authorization of appropriations
    There are authorized to be appropriated to carry out this
  subsection $365,000 for fiscal year 1993 and $380,330 for fiscal
  year 1994.
  (12) Termination
    The demonstration program under this subsection shall terminate
  at the end of fiscal year 1994.
(e) Certification
  (1) Requirement for assistance
    An organization may not receive assistance for counseling
  activities under subsection (a)(1)(iii), (a)(2), (c), or (d) of
  this section, unless the organization provides such counseling,
  to the extent practicable, by individuals who have been certified
  by the Secretary under this subsection as competent to provide
  such counseling.
  (2) Standards and examination
    The Secretary shall, by regulation, establish standards and
  procedures for testing and certifying counselors.  Such standards
  and procedures shall require for certification that the
  individual shall demonstrate, by written examination (as provided
  under subsection (f)(4) of this section), competence to provide
  counseling in each of the following areas:
      (A) Financial management.
      (B) Property maintenance.
      (C) Responsibilities of homeownership and tenancy.
      (D) Fair housing laws and requirements.
      (E) Housing affordability.
      (F) Avoidance of, and responses to, rental and mortgage
    delinquency and avoidance of eviction and mortgage default.
  (3) Encouragement
    The Secretary shall encourage organizations engaged in
  providing homeownership and rental counseling that do not receive
  assistance under this section to employ individuals to provide
  such counseling who are certified under this subsection or meet
  the certification standards established under this subsection.
(f) Homeownership and rental counselor training and certification
    programs
  (1) Establishment
    To the extent amounts are provided in appropriations Acts under
  paragraph (7), the Secretary shall contract with an appropriate
  entity (which may be a nonprofit organization) to carry out a
  program under this subsection to train individuals to provide
  homeownership and rental counseling and to administer the
  examination under subsection (e)(2) of this section and certify
  individuals under such subsection.
  (2) Eligibility and selection
    (A) Eligibility
      To be eligible to provide the training and certification
    program under this subsection, an entity shall have
    demonstrated experience in training homeownership and rental
    counselors.
    (B) Selection
      The Secretary shall provide for entities meeting the
    requirements of subparagraph (A) to submit applications to
    provide the training and certification program under this
    subsection.  The Secretary shall select an application based on
    the ability of the entity to -
        (i) establish the program as soon as possible on a national
      basis, but not later than the date under paragraph (6);
        (ii) minimize the costs involved in establishing the
      program; and
        (iii) effectively and efficiently carry out the program.
  (3) Training
    The Secretary shall require that training of counselors under
  the program under this subsection be designed and coordinated to
  prepare individuals for successful completion of the examination
  for certification under subsection (e)(2) of this section.  The
  Secretary, in consultation with the entity selected under
  paragraph (2)(B), shall establish the curriculum and standards
  for training counselors under the program.
  (4) Certification
    The entity selected under paragraph (2)(B) shall administer the
  examination under subsection (e)(2) of this section and, on
  behalf of the Secretary, certify individuals successfully
  completing the examination.  The Secretary, in consultation with
  such entity, shall establish the content and format of the
  examination.
  (5) Fees
    Subject to the approval of the Secretary, the entity selected
  under paragraph (2)(B) may establish and impose reasonable fees
  for participation in the training provided under the program and
  for examination and certification under subsection (e)(2) of this
  section, in an amount sufficient to cover any costs of such
  activities not covered with amounts provided under paragraph (7).
  (6) Timing
    The entity selected under paragraph (2)(B) to carry out the
  training and certification program shall establish the program as
  soon as possible after such selection, and shall make training
  and certification available under the program on a national basis
  not later than the expiration of the 1-year period beginning upon
  such selection.
  (7) Authorization of appropriations
    There are authorized to be appropriated to carry out this
  subsection $2,000,000 for fiscal year 1993 and $2,084,000 for
  1994.Source
(Pub. L. 90-448, title I, Sec. 106, Aug. 1, 1968, 82 Stat. 490;
Pub. L. 91-609, title IX, Sec. 903(a), (b), Dec. 31, 1970, 84 Stat.
1808; Pub. L. 93-383, title VIII, Sec. 811, Aug. 22, 1974, 88 Stat.
735; Pub. L. 95-128, title IX, Sec. 903, Oct. 12, 1977, 91 Stat.
1149; Pub. L. 97-35, title III, Sec. 339A, Aug. 13, 1982, 95 Stat.
417; Pub. L. 98-181, title IV, Sec. 465, Nov. 30, 1983, 97 Stat.
1236; Pub. L. 98-479, title II, Sec. 204(f), Oct. 17, 1984, 98
Stat. 2233; Pub. L. 100-242, title I, Sec. 169, Feb. 5, 1988, 101
Stat. 1865; Pub. L. 100-628, title X, Sec. 1009, Nov. 7, 1988, 102
Stat. 3266; Pub. L. 101-137, Sec. 8, Nov. 3, 1989, 103 Stat. 826;
Pub. L. 101-625, title V, Sec. 577, title VII, Sec. 706(c), Nov.
28, 1990, 104 Stat. 4238, 4286; Pub. L. 102-550, title I, Sec.
162(a)-(d), Oct. 28, 1992, 106 Stat. 3719-3721; Pub. L. 104-316,
title I, Sec. 106(a), Oct. 19, 1996, 110 Stat. 3830.)


 
                         REFERENCES IN TEXT
  The Housing and Community Development Act of 1974, referred to in
subsec. (a)(1)(iv), is Pub. L. 93-383, Aug. 22, 1974, 88 Stat. 633,
as amended.  Title I of the Housing and Community Development Act
of 1974 is classified principally to chapter 69 (Sec. 5301 et seq.)
of Title 42, The Public Health and Welfare. For complete
classification of this Act to the Code, see Short Title note set
out under section 5301 of Title 42 and Tables.
  Section 152 of the Housing and Community Development Act of 1992,
referred to in subsec. (a)(3), is section 152 of Pub. L. 102-550,
which is set out as a note under section 1437f of Title 42.
  The National Housing Act, referred to in subsecs. (a)(2) and
(d)(9)(K), is act June 27, 1934, ch. 847, 48 Stat. 1246, as
amended.  Title II of the Act is classified generally to subchapter
II (Sec. 1707 et seq.) of this chapter.  For complete
classification of this Act to the Code, see section 1701 of this
title and Tables.
  The Housing Act of 1949, referred to in subsec. (c)(4)(B), is act
July 15, 1949, ch. 338, 63 Stat. 413, as amended.  Title V of the
Housing Act of 1949 is classified generally to subchapter III (Sec.
1471 et seq.) of chapter 8A of Title 42, The Public Health and
Welfare. For complete classification of this Act to the Code, see
Short Title note set out under section 1441 of Title 42, The Public
Health and Welfare, and Tables.
 
                            CODIFICATION
  Section was enacted as part of the Housing and Urban Development
Act of 1968, and not as part of the National Housing Act which
comprises this chapter.
 
                             AMENDMENTS
  1996 - Subsec. (d)(5)(A). Pub. L. 104-316, Sec. 106(a)(2),
substituted ''(9)'' for ''(10)(K)'' in introductory provisions.
  Subsec. (d)(8). Pub. L. 104-316, Sec. 106(a)(3), struck out
''(for purposes of the study and report under paragraph (9))''
before ''may require''.
  Subsec. (d)(9) to (13). Pub. L. 104-316, Sec. 106(a)(1), (4),
redesignated pars. (10) to (13) as (9) to (12), respectively, and
struck out former par. (9) which related to GAO study and report on
demonstration program.
  1992 - Subsec. (a)(3). Pub. L. 102-550, Sec. 162(a), substituted
''except that for such purposes there are authorized to be
appropriated $6,025,000 for fiscal year 1993 and $6,278,050 for
fiscal year 1994. Of the amounts appropriated for each of fiscal
years 1993 and 1994, up to $500,000 shall be available for use for
counseling and other activities in connection with the
demonstration program under section 152 of the Housing and
Community Development Act of 1992.'' for ''except that for such
purposes there are authorized to be appropriated $3,600,000 for
fiscal year 1991 and $3,700,000 for fiscal year 1992.''
  Subsec. (c)(3)(A)(iii). Pub. L. 102-550, Sec. 162(b)(3), added
cl. (iii).
  Subsec. (c)(4). Pub. L. 102-550, Sec. 162(b)(4), inserted flush
sentence at end.
  Subsec. (c)(5)(A). Pub. L. 102-550, Sec. 162(b)(5), added subpar.
(A) and struck out former subpar. (A) which read as follows: ''(A)
In general. - Except as provided in subparagraph (C), if any
eligible homeowner fails to pay any amount by the date the amount
is due under a home loan, the creditor of the loan shall notify the
homeowner of the availability of any homeownership counseling
offered by the creditor and, as a supplement to counseling provided
by the creditor, shall notify the homeowner of 1 of the following:
    ''(i) The availability of homeownership counseling provided by
  nonprofit organizations approved by the Secretary and experienced
  in the provision of homeownership counseling.
    ''(ii) The toll-free telephone number described in subparagraph
  (D)(i).''
  Subsec. (c)(5)(D)(i). Pub. L. 102-550, Sec. 162(b)(6), inserted
'', which shall be updated annually,'' after ''organizations''.
  Subsec. (c)(8). Pub. L. 102-550, Sec. 162(b)(1), amended first
sentence generally.  Prior to amendment, first sentence read as
follows: ''There is authorized to be appropriated to carry out this
section $6,700,000 for fiscal year 1991 and $7,000,000 for fiscal
year 1992, of which amounts $2,000,000 shall be available in each
such fiscal year to carry out paragraph (5)(D).''
  Subsec. (c)(9). Pub. L. 102-550, Sec. 162(b)(2), substituted
''1994'' for ''1992''.
  Subsec. (d)(12). Pub. L. 102-550, Sec. 162(c), amended par. (12)
generally.  Prior to amendment, par. (12) read as follows: ''There
are authorized to be appropriated to carry out this subsection
$350,000 for fiscal year 1991 and $365,000 for fiscal year 1992.''
  Subsecs. (e), (f). Pub. L. 102-550, Sec. 162(d), added subsecs.
(e) and (f).
  1990 - Subsec. (a)(2)(A) to (C). Pub. L. 101-625, Sec. 706(c),
designated portions of existing text as cls. (A) and (C), and added
cl. (B).
  Subsec. (a)(3). Pub. L. 101-625, Sec. 577(a), substituted
provisions authorizing appropriations of $3,600,000 for fiscal year
1991 and $3,700,000 for fiscal year 1992, for provisions
authorizing appropriations of $3,500,000 for each of the fiscal
years 1988 and 1989.
  Subsec. (c)(5). Pub. L. 101-625, Sec. 577(b)(3), amended par. (5)
generally.  Prior to amendment, par. (5) read as follows: ''The
creditor of a delinquent home loan shall notify an eligible
homeowner of the availability of any homeownership counseling
offered by the creditor.  As a supplement to the counseling
provided by the creditor, the creditor shall notify the homeowner
of the availability of 1 of the following:
    ''(A) Homeownership counseling provided by nonprofit
  organizations approved by the Secretary and experienced in the
  provision of homeownership counseling.
    ''(B) A list of the nonprofit organizations, approved by the
  Secretary and experienced in the provision of homeownership
  counseling, that can be obtained by calling a toll-free telephone
  number at the Department of Housing and Urban Development.
    ''(C) Homeownership counseling provided by the Administrator of
  Veterans' Affairs for loans insured or guaranteed under chapter
  37 of title 38.''
  Subsec. (c)(8). Pub. L. 101-625, Sec. 577(b)(1), amended first
sentence generally.  Prior to amendment, first sentence read as
follows: ''There are authorized to be appropriated to carry out
this subsection $3,500,000 for each of the fiscal years 1988 and
1989.''
  Subsec. (c)(9). Pub. L. 101-625, Sec. 577(b)(2), substituted
''September 30, 1992'' for ''September 30, 1990''.
  Subsec. (d). Pub. L. 101-625, Sec. 577(c), added subsec. (d).
  1989 - Subsec. (c)(9). Pub. L. 101-137 substituted ''September
30, 1990'' for ''September 30, 1989''.
  1988 - Subsec. (a)(2). Pub. L. 100-628 inserted before period at
end of first sentence ''or guaranteed or insured under chapter 37
of title 38''.
  Subsec. (a)(3). Pub. L. 100-242, Sec. 169(a), substituted
''except that for each of the fiscal years 1988 and 1989 there are
authorized to be appropriated $3,500,000 for such purposes'' for
''except that for the fiscal year 1984, there are authorized to be
appropriated not to exceed $3,500,000 for such purposes''.
  Subsec. (c). Pub. L. 100-242, Sec. 169(b), added subsec. (c).
  1984 - Subsec. (b)(1). Pub. L. 98-479 substituted
''architectural'' for ''architechtual''.
  1983 - Subsec. (a)(3). Pub. L. 98-181 substituted ''1984'' for
''1982'', and ''$3,500,000'' for ''$4,000,000''.
  1981 - Subsec. (a)(3). Pub. L. 97-35 inserted provisions
authorizing appropriations for fiscal year 1982.
  1977 - Subsec. (a)(2). Pub. L. 95-128 authorized the Secretary to
provide the services for other owners of single family dwelling
units insured under subchapter II of this chapter.
  1974 - Subsec. (a)(1). Pub. L. 93-383, Sec. 811(b)(1), (c), in
cl. (iii) substituted provisions authorizing counseling and advice
to tenants and homeowners with respect to property maintenance,
etc., for provisions authorizing counseling on household
management, self-help, etc., for families receiving assistance
under this chapter or the United States Housing Act of 1937, and
added cl. (iv).
  Subsec. (a)(2). Pub. L. 93-383, Sec. 811(b)(2), added par. (2).
Former par. (2) redesignated (3).
  Subsec. (a)(3). Pub. L. 93-383, Sec. 811(b)(2), (d), redesignated
former par. (2) as (3) and substituted ''such sums as may be
necessary'' for ''not to exceed $5,000,000''.
  Subsec. (b)(1), (2). Pub. L. 93-383, Sec. 811(e), (f), inserted
reference to public housing agencies.
  1970 - Subsec. (a). Pub. L. 91-609, Sec. 903(a), designated
existing provisions as par. (1), inserted provision respecting
specific authorities without limitation to such authorities,
redesignated former par. (1) as cl. (i), struck out introductory
text relating to assistance with respect to construction,
rehabilitation, and operation by nonprofit organizations of housing
for low or moderate income families now incorporated in cl. (i),
redesignated former par. (2) as cl. (ii), inserting therein
provision for assistance to public bodies or to nonprofit or
cooperative organizations, including assistance with respect to
self-help and mutual self-help programs, and added cl. (iii) and
par. (2).
  Subsec. (b)(1). Pub. L. 91-609, Sec. 903(b), substituted
''section 1715z of this title or any other federally assisted
program'' for ''any federally assisted program'' in first sentence.
                  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 this title.
                            REGULATIONS
  Section 162(e) of Pub. L. 102-550 provided that: ''The Secretary
of Housing and Urban Development shall issue any regulations
necessary to carry out the amendments made by subsection (d)
(amending this section), not later than the expiration of the
6-month period beginning on the date of the enactment of this Act
(Oct. 28, 1992).''
 
               SECTION REFERRED TO IN OTHER SECTIONS
  This section is referred to in title 42 sections 1472, 3535,
9816.
