42 U.S.C. § 1471
The Secretary of Agriculture (hereinafter referred to as the "Secretary") is authorized, subject to the terms and conditions of this subchapter, to extend financial assistance, through the Farmers Home Administration, (1) to owners of farms in the United States and in the Territories of Alaska and Hawaii and in the Commonwealth of Puerto Rico, the Virgin Islands, the territories and possessions of the United States, and the Trust Territory of the Pacific Islands, to enable them to construct, improve, alter, repair, or replace dwellings and other farm buildings on their farms, and to purchase buildings and land constituting a minimum adequate site, in order to provide them, their tenants, lessees, sharecroppers, and laborers with decent, safe, and sanitary living conditions and adequate farm buildings as specified in this subchapter, and (2) to owners of other real estate in rural areas for the construction, improvement, alteration, or repair of dwellings, related facilities, and farm buildings and to rural residents, including persons who reside in reservations or villages of Indian tribes, for such purposes and for the purchase of buildings and the purchase of land constituting a minimum adequate site, in order to enable them to provide dwellings and related facilities for their own use and buildings adequate for their farming operations, and (3) to elderly or handicapped persons or families who are or will be the owners of land in rural areas for the construction, improvement, alteration, or repair of dwellings and related facilities, the purchase of dwellings and related facilities and the purchase of land constituting a minimum adequate site, in order to provide them with adequate dwellings and related facilities for their own use, and (4) to an owner described in clause (1), (2), or (3) for refinancing indebtedness which-
In order to be eligible for the assistance authorized by subsection (a), the applicant must show (1) that he is the owner of a farm which is without a decent, safe, and sanitary dwelling for himself and his family and necessary resident farm labor, or for the family of the operating tenant, lessee, or sharecropper, or without other farm buildings adequate for the type of farming in which he engages or desires to engage, or that he is the owner of other real estate in a rural area or a rural resident without an adequate dwelling or related facilities for his own use or buildings adequate for his farming operations, or that the applicant is an elderly or handicapped person or family in a rural area without an adequate dwelling or related facility for its own use, or that he is the owner of a farm or other real estate in a rural area who needs refinancing of indebtedness described in clause (4) of subsection (a); (2) that he is without sufficient resources to provide the necessary housing and buildings on his own account; and (3) that he is unable to secure the credit necessary for such housing and buildings from other sources upon terms and conditions which he could reasonably be expected to fulfill. If an applicant is a State or local public agency or Indian tribe-
As used in this subchapter (except in sections 1473 and 1474(b) of this title) the terms "farm", "farm dwelling", and "farm housing" shall include dwellings or other essential buildings of eligible applicants.
The Secretary shall establish procedures under which borrowers under this subchapter are required to make periodic payments for the purpose of taxes, insurance, and other necessary expenses as the Secretary may deem appropriate. Notwithstanding any other provision of law, such payments shall not be considered public funds. The Secretary shall direct the disbursement of the funds at the appropriate time or times for the purposes for which the funds were escrowed. The Secretary shall pay the same rate of interest on escrowed funds as is required to be paid on escrowed funds held by other lenders in any State where State law requires payment of interest on escrowed funds, subject to appropriations to the extent that additional budget authority is necessary to carry out this sentence. If the prepayments made by the borrower are not sufficient to pay the amount due, advances may be made by the Secretary to pay the costs in full, which advances shall be charged to the account of the borrower, bear interest, and be payable in a timely fashion as determined by the Secretary. The Secretary shall notify a borrower in writing when loan payments are delinquent.
With respect to any limitation on the amount of any loan which may be made, insured, or guaranteed under this subchapter for the purchase of a dwelling unit, the Secretary may increase such amount by up to 20 percent if such increase is necessary to account for the increased cost of the dwelling unit due to the installation of a solar energy system (as defined in subparagraph (3) of the last paragraph of section 1703(a) of title 12) therein.
The programs authorized by this subchapter shall be carried out, consistent with program goals and objectives, so that the involuntary displacement of families and businesses is avoided.
The Secretary may not restrict the availability of assistance under this subchapter for any alien for whom assistance may not be restricted under section 1436a of this title.
For the purposes of this subchapter, the term "development cost" shall include the packaging of loan and grant applications and actions related thereto by public and private nonprofit organizations tax exempt under title 26.
Notwithstanding any other provision of law, the Secretary shall not transfer any program authorized by this subchapter to the Rural Development Administration.
1So in original.
42 U.S.C. § 1471
EDITORIAL NOTES
REFERENCES IN TEXTThe United States Housing Act of 1937, referred to in subsec. (a)(4), is act Sept. 1, 1937, ch. 896, as revised generally by Pub. L. 93-383, title II, §201(a), Aug. 22, 1974, 88 Stat. 653, and amended, which is classified generally to chapter 8 (§1437 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1437 of this title and Tables. The Indian Self-Determination and Education Assistance Act, referred to in subsec. (b)(6), is Pub. L. 93-638, Jan. 4, 1975, 88 Stat. 2203, which is classified principally to chapter 46 (§5301 et seq.) of Title 25, Indians. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of Title 25 and Tables.Chapter 67 of title 31, referred to in subsec. (b)(6), was repealed by Pub. L. 99-272, title XIV, §14001(a)(1), Apr. 7, 1986, 100 Stat. 327, effective Oct. 18, 1986.
AMENDMENTS2004-Subsec. (b)(5)(B). Pub. L. 108-199 struck out "for fiscal years 2002 and 2003," after "this subchapter,".2001-Subsec. (b)(5). Pub. L. 107-76 designated existing provisions as subpar. (A) and added subpar. (B).2000-Subsec. (b)(3). Pub. L. 106-402 substituted "developmental disability as defined in section 15002 of this title" for "developmental disability as defined in section 6001(7) of this title".1996-Subsec. (h). Pub. L. 104-193 struck out par. (1) designation, struck out "by the Secretary of Housing and Urban Development" before "under section 1436a of this title", and struck out par. (2) which read as follows: "In carrying out any restriction established by the Secretary on the availability of assistance under this subchapter for any alien, the Secretary shall follow procedures comparable to the procedures established in section 1436a of this title." 1992-Subsec. (a). Pub. L. 102-550, §1012(m), added par. (5).Subsec. (j). Pub. L. 102-550, §714, added subsec. (j).1990-Subsec. (b)(4). Pub. L. 101-625, §702, inserted at end "The temporary absence of a child from the home due to placement in foster care should not be considered in considering family composition and family size."Subsec. (e). Pub. L. 101-625, §703, inserted after third sentence "The Secretary shall pay the same rate of interest on escrowed funds as is required to be paid on escrowed funds held by other lenders in any State where State law requires payment of interest on escrowed funds, subject to appropriations to the extent that additional budget authority is necessary to carry out this sentence." 1988-Subsec. (b)(3). Pub. L. 100-242, §316(a), substituted "has a developmental disability as defined in section 6001(7) of this title" for "is a developmentally disabled individual as defined in section 6001(7) of this title".Subsec. (b)(4). Pub. L. 100-242, §302(b)(1), inserted provisions at end relating to maximum income levels established for families and persons in the Virgin Islands to be not less than the highest such levels established for families and persons in American Samoa, Guam, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands.Subsec. (e). Pub. L. 100-242, §303, amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: "The Secretary may establish procedures whereby borrowers under this subchapter may make periodic payments for the purpose of taxes, insurance, and such other necessary expenses as the Secretary may deem appropriate. Such payments shall be disbursed by the Secretary at the appropriate time or times for the purposes for which such payments are made, and after October 1, 1977, if the prepayments made by the borrower are not sufficient to pay the amount due, advances may be made by the Secretary to pay these costs in full, which advances shall be charged to the account of the borrower and bear interest and be payable in a timely fashion not to exceed two years, as determined by the Secretary. The Secretary shall notify a borrower in writing when his loan payments are delinquent."Subsec. (h). Pub. L. 100-242, §302(a), added subsec. (h).Subsec. (i). Pub. L. 100-242, §315, added subsec. (i).1986-Subsec. (b)(6). Pub. L. 99-272 substituted "or was considered an eligible recipient under chapter 67 of title 31 prior to the repeal of such chapter" for "or under chapter 67 of title 31".1984-Subsec. (b)(4). Pub. L. 98-479, §105(a), struck out "by the Secretary of Housing and Urban Development" before "under the United States Housing Act of 1937."Subsec. (b)(6). Pub. L. 98-479, §203(d)(3), substituted "chapter 67 of title 31" for "the State and Local Fiscal Assistance Act of 1972 (Public Law 92-512)".1983-Subsec. (b)(4). Pub. L. 98-181, §502(a), amended par. (4) generally, substituting definition of low and very low-income families or persons as those whose incomes do not exceed levels established by the Secretary under the United States Housing Act of 1937 for definition of persons of low income as those whose incomes do not exceed 80 per centum of the area median income, except when it is impracticable to use such median income or variations are necessary because of other factors. Subsec. (b)(5). Pub. L. 98-181, §502(b), amended par. (5) generally, substituting definition of income and adjusted income as having the meanings given by sections 3(b)(4) and 3(b)(5) of the United States Housing Act of 1937 for definition of income as income from all sources of each household member, as determined in accordance with criteria prescribed by the Secretary.1980-Subsec. (a)(2). Pub. L. 96-399, §507(a), inserted reference to persons residing in reservations or villages of Indian tribes.Subsec. (b)(6) to (8). Pub. L. 96-399, §506, added pars. (6) to (8).Subsec. (c). Pub. L. 96-399, §507(h), inserted "or Indian tribe" after "local public agency" in second sentence.Subsec. (g). Pub. L. 96-399, §512, added subsec. (g).1979-Subsec. (a)(4). Pub. L. 96-153, §506, redesignated former subpar. (B) as (B)(i) and (ii), and in subpar. (B)(i) as so redesignated, inserted reference to circumstances beyond the applicant's control, and in subpar. (B)(ii) as so redesignated, substituted reference to deprivation of decent, safe, and sanitary dwelling for reference to continuing hardship, and struck out subpar. (C) which authorized refinancing indebtedness provided the indebtedness was incurred at least 5 years prior to the application for assistance.Subsec. (b)(4), (5). Pub. L. 96-153, §502(b), added pars. (4) and (5). 1978-Subsec. (f). Pub. L. 95-619 added subsec. (f).1977-Subsec. (a)(3). Pub. L. 95-128, §507(a)(1), substituted "elderly or handicapped persons or families" for "elderly persons".Subsec. (b)(3). Pub. L. 95-128, §507(b), substituted definition of "elderly or handicapped persons or families" for prior definition of "elderly persons" as persons who are 62 years of age or over.Subsec. (c)(1). Pub. L. 95-128, §507(a)(2), substituted "the applicant is an elderly or handicapped person or family in a rural area without an adequate dwelling or related facility for its own use" for "he is an elderly person in a rural area without an adequate dwelling or related facilities for his own use".Subsec. (e). Pub. L. 95-128, §503, substituted as a second sentence "Such payments shall be disbursed by the Secretary at the appropriate time or times for the purposes for which such payments are made, and after October 1, 1977, if the prepayments made by the borrower are not sufficient to pay the amount due, advances may be made by the Secretary to pay these costs in full, which advances shall be charged to the account of the borrower and bear interest and be payable in a timely fashion not to exceed two years, as determined by the Secretary" for "Such payments shall be held in escrow by the Secretary and paid out by him at the appropriate time or times for the purposes for which such payments are made". 1974-Subsec. (a)(1). Pub. L. 93-383, §501, inserted references to the territories and possessions of the United States and the Trust Territory of the Pacific Islands. Subsec. (a)(4)(B). Pub. L. 93-383, §502(1), inserted provisions relating to combining of indebtedness with a loan for improvement, rehabilitation, or repairs. Subsec. (a)(4)(C). Pub. L. 93-383, §502(2), substituted provisions relating to incursion of indebtedness by the applicant at least five years prior to his applying under this clause for provisions relating to indebtedness not held or insured by the United States or any agency. Subsec. (a)(4)(D). Pub. L. 93-383, §502(2), struck out subpar. (D) which related to indebtedness incurred prior to enactment of clause. Subsec. (b)(2). Pub. L. 93-383, §503, substituted "this subchapter" for "sections 1472 and 1474 of this title".Subsec. (c). Pub. L. 93-383, §520, inserted provisions relating to applications of a State or local public agency.Subsec. (e). Pub. L. 93-383, §505(a), added subsec. (e).1970-Subsec. (b)(2). Pub. L. 91-609 substituted "sections 1472 and 1473 of this title, the terms 'owner' and 'mortgage' shall be deemed to include, respectively, the lessee of" for "this subchapter, the terms 'owner', 'farm', and 'mortgage' shall be deemed to include, respectively, the lessee of, the land included in". The words ",the land included in" were improvidently omitted. 1966-Subsec. (a)(1) to (3). Pub. L. 89-754, §801, struck out "previously occupied" before "buildings and land" in cl. (1), "buildings and the purchase of land" in cl. (2), and "dwellings and related facilities" in cl. (3).Subsec. (a)(4). Pub. L. 89-754, §807(a), added cl. (4).Subsec. (c)(1). Pub. L. 89-754, §807(b), inserted as a condition of eligibility that the applicant be the owner of a farm or other real estate in a rural area who needs refinancing of indebtedness described in subsec. (a)(4) of this section. 1965-Subsec. (a). Pub. L. 89-117, §1001(a), authorized the extension of formal assistance to owners of farms to purchase previously occupied buildings and land constituting a minimum adequate site, to owners of other real estate in rural areas for the construction, improvement, alteration, or repair of dwellings, related facilities, and farm buildings, and to rural residents for such purposes and for the purchase of previously occupied buildings and the purchase of land constituting a minimum adequate site.Subsec. (c). Pub. L. 89-117, §1001(b), inserted "or a rural resident" in cl. (1) after "or that he is the owner of other real estate in a rural area". 1962-Subsec. (a)(3). Pub. L. 87-723, §4(a)(1)(A), added cl. (3).Subsec. (b)(3). Pub. L. 87-723, §4(a)(1)(B), added par. (3). Subsec. (c)(1). Pub. L. 87-723, §4(a)(1)(C), inserted provisions requiring the applicant for assistance to show in the alternative that he is an elderly person in a rural area without an adequate dwelling or related facilities for his own use. 1961-Subsec. (a). Pub. L. 87-70, §803(a), authorized assistance to owners of other real estate in rural areas to enable them to provide dwellings and related facilities for their own use and buildings adequate for their farming operations.Subsec. (b). Pub. L. 87-70, §801(a), designated existing provisions as par. (1) and added par. (2). Subsec. (c). Pub. L. 87-70, §803(b), permitted the applicant to show that he is the owner of other real estate in a rural area without an adequate dwelling or related facilities for his own use or buildings adequate for his farming operations.Subsec. (d). Pub. L. 87-70, §803(c), added subsec. (d).
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 1988 AMENDMENTPub. L. 100-242, title III, §302(b)(2), Feb. 5, 1988, 101 Stat. 1894, provided that: "The amendment made by paragraph (1) [amending this section] shall be applicable to any determination of eligibility for assistance under title V of the Housing Act of 1949 [this subchapter] made on or after the date of the enactment of this Act [Feb. 5, 1988]."
EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99-272 effective Oct. 18, 1986, see section 14001(e) of Pub. L. 99-272.
PERFORMANCE GOALS FOR FARMERS HOME ADMINISTRATION Pub. L. 102-550, title IX, §925(b), Oct. 28, 1992, 106 Stat. 3885, provided that:"(1) IN GENERAL.-The Secretary of Agriculture may establish performance goals for the major housing programs of the Farmers Home Administration in order to measure progress towards meeting the objectives of national housing policy. "(2) FORM OF GOALS.-The performance goals referred to in paragraph (1) shall be expressed in terms sufficient to measure progress. "(3) REPORT.-The Secretary of Agriculture shall prepare a report to the Congress on the progress made in attaining the performance goals for each program, citing the actual results achieved in such program for the previous year."(4) FAILURE TO MEET GOALS.-If a performance standard or goal has not been met, the report under paragraph (3) shall include an explanation of why the goal was not met, propose plans for achieving the performance goal, and recommend any legislative or regulatory changes necessary for achievement of the goal."[For termination, effective May 15, 2000, of provisions of law requiring submittal to Congress of any annual, semiannual, or other regular periodic report listed in House Document No. 103-7 (in which a report required under section 925(b)(3) of Pub. L. 102-550 set out above, is listed in item 12 on page 47), see section 3003 of Pub. L. 104-66 as amended, set out as a note under section 1113 of Title 31, Money and Finance.]
EXECUTIVE DOCUMENTS
TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDSFor termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions.
ADMISSION OF ALASKA AND HAWAII TO STATEHOOD Alaska was admitted into the Union on Jan. 3, 1959, on issuance of Proc. No. 3269, Jan. 3, 1959, 24 F.R. 81, 73 Stat. c16, and Hawaii was admitted into the Union on Aug. 21, 1959, on issuance of Proc. No. 3309, Aug. 21, 1959, 24 F.R. 6868, 73 Stat. c74. For Alaska Statehood Law, see Pub. L. 85-508, July 7, 1958, 72 Stat. 339, set out as a note preceding section 21 of Title 48, Territories and Insular Possessions. For Hawaii Statehood Law, see Pub. L. 86-3, Mar. 18, 1959, 73 Stat. 4, set out as a note preceding section 491 of Title 48.
- Secretary
- The term "Secretary" means the Secretary of Housing and Urban Development.1See References in Text note below.
- owner
- The term "owner" means, with respect to federally assisted housing, the entity or private person, including a cooperative or public housing agency, that has the legal right to lease or sublease dwelling units in such housing.