Title 12, Banks and BankingRelease 119-110
§1701z New Technologies in the Development of Housing for Lower Income Families
Title 12 › CHAPTER 13 — NATIONAL HOUSING › § 1701z
Summary
The HUD Secretary must set up a program to promote new building technologies that can produce decent, safe housing for lower-income families. Public and private groups can submit plans to build on federal land HUD provides or on other land where local rules allow experimental housing. HUD will pick no more than five plans that seem most likely to produce affordable housing at large scale, protect environmental quality, be mass-producible, and come from organizations strong enough to build at least 1,000 homes a year using the proposed technology. For projects getting HUD mortgage insurance, HUD will try to produce at least 1,000 homes a year for five years for each type of technology approved. HUD must measure each project’s cost per unit, the environmental quality of the units, and how local codes and zoning affect costs. HUD can transfer suitable excess federal land for these projects. The HUD Secretary must report the results and recommend any new laws needed to expand proven technologies.
Full Legal Text
Title 12, §1701z
Banks and Banking, Source: USLM XML via OLRC
(a)Institution of program; assistance to mobile home buyers
In order to encourage the use of new housing technologies in providing decent, safe, and sanitary housing for lower income families; to encourage large-scale experimentation in the use of such technologies; to provide a basis for comparison of such technologies with existing housing technologies in providing such housing; and to evaluate the effect of local housing codes and zoning regulations on the large-scale use of new housing technologies in the provision of such housing, the Secretary of Housing and Urban Development (hereinafter referred to as the “Secretary”) shall institute a program under which qualified organizations, public and private, will submit plans for the development of housing for lower income families, using new and advanced technologies, on Federal land which has been made available by the Secretary for the purposes of this section, or on other land where (1) local building regulations permit the construction of experimental housing, or (2) State or local law permits variances from building regulations in the construction of experimental housing for the purpose of testing and developing new building technologies.
(b)Approval of plans utilizing new housing technologies; considerations
The Secretary shall approve not more than five plans utilizing new housing technologies which are submitted to him pursuant to the program referred to in subsection (a) and which he determines are most promising in furtherance of the purposes of this section. In making such determination the Secretary shall consider—
(1)the potential of the technology employed for producing housing for lower income families on a large scale at a moderate cost;
(2)the extent to which the plan envisages environmental quality;
(3)the possibility of mass production of the technology; and
(4)the financial soundness of the organization submitting the plan, and the ability of such organization, alone or in combination with other organizations, to produce at least one thousand dwelling units a year utilizing the technology proposed.
(c)Number of dwelling units to be constructed for each type of technology; evaluation of projects
In approving projects for mortgage insurance under section 1715x(a)(2) of this title, the Secretary shall seek to achieve the construction of at least one thousand dwelling units a year over a five-year period for each of the various types of technologies proposed in approved plans under subsection (b). The Secretary shall evaluate each project with respect to which assistance is extended pursuant to this section with a view to determining (1) the detailed cost breakdown per dwelling unit, (2) the environmental quality achieved in each unit, and (3) the effect which local housing codes and zoning regulations have, or would have if applicable, on the cost per dwelling unit.
(d)Transfer of surplus property
Notwithstanding the provisions of chapters 1 to 11 of title 40 and division C (except section 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41, any land which is excess property within the meaning of chapters 1 to 11 of title 40 and division C (except section 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41 and which is determined by the Secretary to be suitable in furtherance of the purposes of this section may be transferred to the Secretary upon his request.
(e)Report of findings; legislative recommendations
The Secretary shall, at the earliest practicable date, report his findings with respect to projects assisted pursuant to this section (including evaluations of each such project in accordance with subsection (c)), together with such recommendations for additional legislation as he determines to be necessary or desirable to expand the available supply of decent, safe, and sanitary housing for lower income families through the use of technologies the efficacy of which has been demonstrated under this section.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Codification In subsec. (d), “chapters 1 to 11 of title 40 and division C (except section 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41, any land which is excess property within the meaning of chapters 1 to 11 of title 40 and division C (except section 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41” substituted for “the Federal Property and Administrative Services Act of 1949, any land which is excess property within the meaning of such Act” on authority of Pub. L. 107–217, § 5(c), Aug. 21, 2002, 116 Stat. 1303, which Act enacted Title 40, Public Buildings, Property, and Works, and Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts. 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.
Reference
Citations & Metadata
Citation
12 U.S.C. § 1701z
Title 12, Banks and Banking
Last Updated
Sep 22, 2026
Release point: 119-110