Title 42The Public Health and WelfareRelease 119-73

§1591a Construction by private enterprise

Title 42 › Chapter CHAPTER 9— - HOUSING OF PERSONS ENGAGED IN NATIONAL DEFENSE › Subchapter SUBCHAPTER VIII— - CRITICAL DEFENSE HOUSING AREAS › § 1591a

Last updated Apr 6, 2026|Official source

Summary

Gives private builders the first chance to provide housing for defense workers and military people in places the President calls "critical defense housing areas." The Secretary of Housing and Urban Development must publish how many permanent homes are needed, the types, rents or sale prices, and general locations in the Federal Register. The President can lift or loosen residential credit limits under the Defense Production Act for needed units. Limits are suspended for homes to sell at $12,000 or less or rent at $85 or less, and relaxed for other housing as needed. Federal construction is blocked unless, within not less than 90 days after mortgage insurance under Title II is announced, private builders or eligible mortgagees do not file real applications showing they will provide the announced housing.

Full Legal Text

Title 42, §1591a

The Public Health and Welfare — Source: USLM XML via OLRC

In order to assure that private enterprise shall be afforded full opportunity to provide the defense housing needed wherever possible, in any area which the President, pursuant to the authority contained in section 1591 of this title, has declared to be a critical defense housing area—
(a)first, the number of permanent dwelling units (including information as to types, rentals, and general locations) needed for defense workers and military personnel in such critical defense housing area shall be publicly announced and printed in the Federal Register by the Secretary of Housing and Urban Development;
(b)second, residential credit restrictions under the Defense Production Act of 1950, as amended [50 U.S.C. 4501 et seq.], (1) as to housing to be sold at $12,000 or less per unit or to be rented at $85 or less per unit per month, shall be suspended with respect to the number and types of housing units at the sales prices or rentals which the President determines to be needed in such area for defense workers or military personnel, and (2) as to all other housing, shall be relaxed in such manner and to such extent as the President determines to be necessary and appropriate to obtain the production of such housing needed in such area for defense workers or military personnel;
(c)third, the mortgage insurance aids provided under title II of this Act shall be made available to obtain the production of housing needed in such area for defense workers or military personnel; and
(d)fourth, no permanent housing shall be constructed by the Federal Government under the provisions of subchapter IX of this chapter except to the extent that private builders or eligible mortgagees have not, within a period of not less than ninety days (as the Secretary of Housing and Urban Development shall specify) following public announcement of the availability of such mortgage insurance aids under title II of this Act, indicated through bona fide applications (which meet the requirements as to types, rentals, or sales prices, and general locations) for exceptions from such residential credit restrictions or for mortgage insurance or guaranty that they will provide the housing determined to be needed in such area for defense workers and military personnel and publicly announced as provided by subsection (a) of this section.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Defense Production Act of 1950, referred to in subsec. (b), is act Sept. 8, 1950, ch. 932, 64 Stat. 798, which is classified to chapter 55 (§ 4501 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see Tables. This Act, referred to in subsecs. (c) and (d), means act Sept. 1, 1951, ch. 378, 65 Stat. 293, known as the Defense Housing and Community Facilities and Services Act of 1951. Title II of this Act enacted subchapter X (§ 1750 et seq.) of chapter 13 of Title 12, Banks and Banking, and amended section 371, 1430, 1702, 1706, 1715c, 1715f, 1716, and 1743 of Title 12. For complete classification of this Act to the Code, see

Short Title

of 1951 Amendment note set out under section 1501 of this title and Tables.

Statutory Notes and Related Subsidiaries

Transfer of Functions

For

Transfer of Functions

to Secretary of Housing and Urban Development, see note set out under section 1581 of this title.

Reference

Citations & Metadata

Citation

42 U.S.C. § 1591a

Title 42The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73