Page:United States Statutes at Large Volume 100 Part 1.djvu/138

 100 STAT. 102

PUBLIC LAW 99-272—APR. 7, 1986

Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec.

3004. 3005. 3006. 3007.

Public and Indian housing financing reforms. Rural housing authorizations. Management of insured and guaranteed rural housing loans. Extension of Federal Housing Administration mortgage insurance programs. 3008. Extension of rehabilitation loan authority. 3009. Extension of rural housing authorities. 3010. Extension of flood and crime insurance programs. 3011. Miscellaneous extensions.

SEC. 3002. PURCHASE OF CDBG GUARANTEED OBLIGATIONS BY THE FEDERAL FINANCING BANK. 42 USC 5308.

42 USC 5308 note. 42 USC 5308 note.

(a) PROHIBITION.—Section 108 of the Housing and Community Development Act of 1974 is amended by adding at the end thereof the following: "(1) Notes or other obligations guaranteed under this section may not be purchased by the Federal Financing Bank.". (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall take effect on July 1, 1986, (c) ADMINISTRATIVE ACTIONS.—The Secretary of Housing and

Urban Development shall take such administrative actions as are necessary to provide by the effective date of subsection (a) private sector financing of loans guaranteed under section 108 of the Housing and Community Development Act of 1974. SEC. 3003. PUBLIC HOUSING OPERATING SUBSIDIES.

42 USC 1437g.

Section 9(c) of such Act is amended by striking out "and by" after "1983," and by inserting after "1984" the following: ", and not to exceed $1,279,000,000 on or after October 1, 1985". SEC. 3004. PUBLIC AND INDIAN HOUSING FINANCING REFORMS.

42 USC 1437b. Loans. Contracts.

Section 4 of the United States Housing Act of 1937 is amended by adding at the end thereof the following new subsection: "(c)(1) At such times as the Secretary may determine, and in accordance with such accounting and other procedures as the Secretary may prescribe, 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 contributions, or to any loan all or part of the proceeds of which are due a public housing agency from contractors or others. "(2)(A) On the date of the enactment of the Housing and Community Development Reconciliation Amendments of 1985, each note or other obligation issued by the Secretary to the Secretary of the Treasury pursuant to subsection (b), together 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 subsequent September 30, each such note or other obligation issued by the Secretary to the Secretary of the Treasury pursuant to subsection (b) during the fiscal year ending on such date, together with any promise to repay the principal and unpaid interest that has accrued on each note or

�