Title 12 — Banks and BankingRelease 119-73
§1701z–3 Experimental housing allowance payment program
Title 12 › Chapter CHAPTER 13— - NATIONAL HOUSING › § 1701z–3
Summary
The Secretary may run experimental programs that test giving housing allowance payments to help families pay rent or buy homes. Those payments must stop after July 1, 1985. After January 1, 1975, the Secretary cannot make new contracts under the United States Housing Act of 1937 to run these programs, but may hire public or private agencies to do administrative work. If Congress approves the money, the Secretary may extend certain annual contribution contracts for the experimental housing allowance supply program through September 30, 1989, on the same terms, only to help homeowners who were in the program on June 1, 1983, and may use authority under section 5(c) of the United States Housing Act of 1937. The Secretary must report findings to Congress by eighteen months after August 22, 1974.
Full Legal Text
Title 12, §1701z–3
Banks and Banking — Source: USLM XML via OLRC
(a)The Secretary is authorized to undertake on an experimental basis programs to demonstrate the feasibility of providing housing allowance payments to assist families in meeting rental or homeownership expenses.
(b)(1)No housing allowance payments shall be made after July 1, 1985. After January 1, 1975, the Secretary shall not enter into contracts under the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.] to carry out the purposes of this section. The Secretary may contract with public or private agencies for the performance of administrative functions in connection with the programs authorized by this section.
(2)Notwithstanding the provisions of paragraph (1), the Secretary shall, to the extent approved in appropriation Acts, extend the annual contributions contracts for the experimental housing allowance supply program through September 30, 1989, on the same terms and conditions as the original contracts, for the sole purpose of providing assistance for homeowners participating in such program on June 1, 1983. In extending such contracts, the Secretary may, to the extent approved in appropriation Acts, use authority available under section 5(c) of the United States Housing Act of 1937 [42 U.S.C. 1437c(c)].
(c)The Secretary shall report to the Congress on his findings pursuant to this section not later than eighteen months after August 22, 1974.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
The United States Housing Act of 1937, referred to in subsec. (b)(1), is act Sept. 1, 1937, ch. 896, as revised generally by Pub. L. 93–383, title II, Aug. 22, 1974, 88 Stat. 653, which is classified to chapter 8 (§ 1437 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 1437 of Title 42 and Tables. Codification Section was enacted as part of the Housing and Urban Development Act of 1970, and not as part of the National Housing Act which comprises this chapter.
Amendments
1983—Subsec. (b). Pub. L. 98–35 designated existing provisions as par. (1) and added par. (2). 1976—Subsec. (b). Pub. L. 94–375 struck out provisions which authorized the Secretary to make or contract to make housing allowance payments, authorized sums to be appropriated as necessary, including sums for contract payments and administrative costs, and limited the aggregate amount of contracts for making housing allowance payments. 1974—Subsec. (a). Pub. L. 93–383 substituted provisions authorizing the Secretary to undertake programs on an experimental basis of housing allowance payments to assist families in meeting rental or homeownership expenses, for provisions authorizing the Secretary in carrying out activities under section 1701z–1 of this title to undertake programs on an experimental basis of housing allowances to assist families of low income to obtain rental housing of their choice in existing units. Subsec. (b). Pub. L. 93–383 substituted provisions relating to the authority of the Secretary to make or contract to make payments to or on behalf of participating families, authorizing appropriations, and setting forth limits on the contracting power of the Secretary, for provisions setting forth limitations on the amount of family allowances and conditioning payment of such allowances. Subsec. (c). Pub. L. 93–383 substituted provisions requiring the Secretary to report to Congress not later than 18 months after Aug. 22, 1974, for provisions setting forth the contracting authority of the Secretary for services. Subsec. (d). Pub. L. 93–383 struck out subsec. (d) which set forth limits on aggregate family allowances and authorizing appropriations to make payments. Subsec. (e). Pub. L. 93–383 struck out subsec. (e) which required a report to Congress by the Secretary as soon as practicable in calendar years 1972 and 1973. Subsec. (f). Pub. L. 93–383 struck out subsec. (f) which defined “families of low income” and “existing standard housing”. Subsec. (g). Pub. L. 93–383 struck out subsec. (g) which prohibited payments after June 30, 1973.
Statutory Notes and Related Subsidiaries
Effective Date
of 1983 Amendment Pub. L. 98–35, § 6(b), May 26, 1983, 97 Stat. 199, provided that: “The
Amendments
made by this section [amending this section] shall become effective on October 1, 1983.”
Reference
Citations & Metadata
Citation
12 U.S.C. § 1701z–3
Title 12 — Banks and Banking
Last Updated
Apr 6, 2026
Release point: 119-73