42 U.S.C. § 1587: Disposition of other…

Summary

The Secretary of Housing and Urban Development must sell permanent war housing as quickly as makes sense for the public. For houses meant for up to four families and sold separately, people living there and veterans get first chances to buy, in this order: a veteran who lives there and will stay, a nonveteran who lives there and will stay, then a veteran who plans to live there. The Secretary can set extra smaller priorities and may give first chance to people from whom the United States bought the house. “Veteran” here means a veteran or servicemember, their family, or the family of a deceased veteran or servicemember whose death the Department of Veterans Affairs has found to be service-connected. Larger projects or buildings sold whole or in parts can be offered first to veteran groups organized as mutual owners or co-ops for a period of not less than 90 days and not more than six months from the first offer. The Secretary must use a fair method to pick among competing preferred buyers. After sale, the homes count as built after June 30, 1947 for veteran priority rules under the Housing and Rent Act of 1947. Buyers generally must pay the full price within 25 years with interest of at least 4% per year, except for projects originally planned as mutual housing under the defense program, which may require no down payment, be paid over 45 years, and carry interest of not more than 3% per year. The Secretary can ignore these preferences if the housing is not suitable for family living, is being used for non-dwelling purposes at the time of sale, or was already offered to veterans and occupants with similar preferences before April 20, 1950.

Title 42, §1587

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(a)Public interest

The Secretary of Housing and Urban Development shall, subject to the provisions of this section, dispose of permanent war housing, other than housing conveyed pursuant to section 1586 of this title, as promptly as practicable and in the public interest.

(b)Preference in sales to individuals

Preference in the purchase of any dwelling structure designed for occupancy by not more than four families and offered for separate sale shall be granted to occupants and to veterans over other prospective purchasers for such period as the Secretary of Housing and Urban Development may determine and in the following order:

(1)a veteran who occupies a unit in the dwelling structure to be sold and who intends to continue to occupy such unit;

(2)a nonveteran who occupies a unit in the dwelling structure to be sold and who intends to continue to occupy such unit;

(3)a veteran who intends to occupy a unit in the dwelling structure to be sold.

Subject to the above order of preference, the Secretary of Housing and Urban Development may establish subordinate preferences for any such dwelling structure. In the disposition of any dwellings under this section which were acquired by the United States from persons occupying the dwellings at the time of such acquisition, the Secretary of Housing and Urban Development may, notwithstanding the order of preference provided in this section, grant a first preference to such persons in the purchase of any of these dwellings for such period and under such conditions as the Secretary may determine to be appropriate and in the public interest. As used in this subsection, the term “veteran” shall include a veteran, a serviceman, or the family of a veteran or a serviceman, or the family of a deceased veteran or serviceman whose death has been determined by the Secretary of Veterans Affairs to be service-connected.

(c)Preference in sales of projects

In the case of any housing project required by this section to be disposed of, which is not offered for separate sale of separate dwelling structures designed for occupancy by not more than four families, such project may be sold as a whole or in such portions as the Secretary of Housing and Urban Development may determine. On such sales of an entire project or portions thereof consisting of more than one dwelling structure or of an individual dwelling structure designed for occupancy by more than four families, first preference shall be given for such period not less than ninety days nor more than six months from the date of the initial offering of such project or portions thereof as the Secretary of Housing and Urban Development may determine, to groups of veterans organized on a mutual ownership or cooperative basis (provided that any such group shall accept as a member of its organization, on the same terms, subject to the same conditions, and with the same privileges and responsibilities, required of, and extended to other members of the group any tenant occupying a dwelling unit in such project, portion thereof or building, at any time during such period as the Secretary of Housing and Urban Development shall deem appropriate, starting on the date of the announcement by the Secretary of Housing and Urban Development of the availability of such project, portion thereof or building for sale), except that a first preference for said period of not less than ninety days nor more than six months shall be given to any group organized on a mutual or cooperative basis, which, with respect to its proposed purchase of a specific housing project or portions thereof, has, prior to August 1, 1949, been granted an exception by the Secretary of Housing and Urban Development from the sales preference provisions of Public Regulation 1 of the Housing and Home Finance Agency and has been designated as a preferred purchaser.

(d)Equitable selection method for each preference class

The Secretary of Housing and Urban Development shall provide an equitable method of selecting the purchasers to apply when preferred purchasers (or groups of preferred purchasers) in the same preference class or containing members in the same preference class compete with each other.

(e)Veterans’ preference

Any housing disposed of in accordance with this section shall after such disposal be deemed to be housing accommodations the construction of which was completed after June 30, 1947, within the meaning of section 4 of the Housing and Rent Act of 1947, as amended, relating to preference or priority to veterans of World War II or their families.

(f)Terms of sales

Sales pursuant to this section shall be upon such terms as the Secretary of Housing and Urban Development shall determine: Provided, That full payment to the Government for the property sold shall be required within a period not exceeding twenty-five years with interest on unpaid balances at not less than 4 per centum per annum, except that in the case of projects initially programmed as mutual housing communities under the defense housing program, the terms of sale shall not require a down payment and shall provide for full payment to the United States over a period of forty-five years with interest on unpaid balances at not more than 3 per centum per annum.

(g)Disregard of preferences in certain cases

The Secretary of Housing and Urban Development may dispose of any permanent war housing without regard to the preferences in subsections (b) and (c) of this section when the Secretary determines that (1) such housing, because of design or lack of amenities, is unsuitable for family dwelling use, or (2) it is being used at the time of disposition for other than dwelling purposes, or (3) it was offered, with preferences substantially similar to those provided in the Housing Act of 1950, to veterans and occupants prior to April 20, 1950.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 4 of the Housing and Rent Act of 1947, as amended, referred to in subsec. (e), is section 4 of act June 30, 1947, ch. 163, title I, 61 Stat. 195, which was formerly classified to section 1884 of the former Appendix to Title 50, War and National Defense, and has been omitted from the Code. The Housing Act of 1950, referred to in subsec. (g), is act Apr. 20, 1950, ch. 94, 64 Stat. 48. For complete classification of this Act to the Code, see

Short Title

of 1950 Amendment note set out under section 1701 of Title 12, Banks and Banking, and Tables.

Amendments

1991—Subsec. (b). Pub. L. 102–54 substituted “Secretary of Veterans Affairs” for “Veterans’ Administration” in last sentence. 1954—Subsec. (b). Act Mar. 10, 1954, in last paragraph, inserted sentence permitting Administrator to give, in the disposition of dwellings under this section which were acquired by the United States from persons occupying the dwellings at the time of such acquisition, a first preference to such persons in the purchase thereof. Subsec. (g). Act Aug. 2, 1954, added subsec. (g).

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.

§1587 Disposition of Other Permanent War Housing

Summary

Title 42, §1587

Notes & Related Subsidiaries

Editorial Notes

References in Text

Short Title

Amendments

Statutory Notes and Related Subsidiaries

Transfer of Functions

Transfer of Functions

Citations & Metadata