Neighborhood Reinvestment Corporation Act
Public Law 95–557, as amended
92 Stat. 2115, as amended
Neighborhood Reinvestment Corporation Act
557
111–203
Statute Compilation
United States House of Representatives
Office of the Legislative Counsel
text/xml
EN
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Neighborhood Reinvestment Corporation Act
1302
95
1978-10-31
Neighborhood Reinvestment Corporation Act
[Public Law 95–557; 92 Stat. 2115; 42 U.S.C. 8101 et seq.]
[As Amended Through P.L. 111–203, Enacted July 21, 2010]
[Currency: This publication is a compilation of the text of Public Law 95–557. It was last amended by the public law listed in the As Amended Through note above and below at the bottom of each page of the pdf version and reflects current law through the date of the enactment of the public law listed at https://www.govinfo.gov/app/collection/comps/]
[Note: While this publication does not represent an official version of any Federal statute, substantial efforts have been made to ensure the accuracy of its contents. The official version of Federal law is found in the United States Statutes at Large and in the United States Code. The legal effect to be given to the Statutes at Large and the United States Code is established by statute (1 U.S.C. 112, 204).]
TITLE VI—

NEIGHBORHOOD REINVESTMENT CORPORATION1
^1
Title VI is an excerpt from the Act entitled the Housing and Community Development Amendments of 1978.

short title
Sec. 601.
[42 U.S.C. 8101 note]
This title may be cited as the “Neighborhood Reinvestment Corporation Act”.

findings and purpose
Sec. 602.
[42 U.S.C. 8101]
(a)
The Congress finds that—
(1)
the neighborhood housing services demonstration of the Urban Reinvestment Task Force has proven its worth as a successful program to revitalize older urban neighborhoods by mobilizing public, private, and community resources at the neighborhood level; and
(2)
the demand for neighborhood housing services programs in cities throughout the United States warrants the creation of a public corporation to institutionalize and expand the neighborhood housing services program and other programs of the present Urban Reinvestment Task Force.
(b)
The purpose of this title is to establish a public corporation which will continue the joint efforts of the Federal financial supervisory agencies and the Department of Housing and Urban Development to promote reinvestment in older neighborhoods by local financial institutions working cooperatively with the community people and local government, and which will continue the nonbureaucratic approach of the Urban Reinvestment Task Force, relying largely on local initiative for the specific design of local programs.

establishment of corporation
Sec. 603.
[42 U.S.C. 8102]
(a)
There is established a Neighborhood Reinvestment Corporation (hereinafter referred to as the “corporation”) which shall be a body corporate and shall possess the powers and shall be subject to the direction and limitations specified herein.
(b)
The corporation shall implement and expand the demonstration activities carried out by the Urban Reinvestment Task Force.
(c)
The corporation shall maintain its principal office in the District of Columbia or at such other place the corporation may from time to time prescribe.
(d)
The corporation, including its franchise, activities, assets, and income, shall be exempt from all taxation now or hereafter imposed by the United States, by any territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority, except that any real property of the corporation shall be subject to State, territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed.

board of directors; establishment
Sec. 604.
[42 U.S.C. 8103]
(a)
The corporation shall be under the direction of a board of directors made up of the following members:
(1)
the Chairman of the Federal Home Loan Bank Board or a member of the Federal Home Loan Bank Board to be designated by the Chairman;
(2)
the Secretary of Housing and Urban Development;
(3)
the Chairman of the Board of Governors of the Federal Reserve System, or a member of the Board of Governors of the Federal Reserve System to be designated by the Chairman;
(4)
the Chairman of the Federal Deposit Insurance Corporation or the appointive member of the Board of Directors of the Federal Deposit Insurance Corporation if so designated by the Chairman;
(5)
the Comptroller of the Currency; and
(6)
the Chairman of the National Credit Union Administration or a member of the Board of the National Credit Union Administration to be designated by the Chairman.
(b)
The Board shall elect from among its members a chairman who shall serve for a term of two years, except that the Chairman of the Federal Home Loan Bank Board shall serve as Chairman of the Board of Directors for the first such two-year term.
(c)
Each director of the corporation shall serve ex officio during the period he holds the office to which he is appointed by the President.
(d)
The directors of the corporation, as full-time officers of the United States, shall serve without additional compensation but shall be reimbursed for travel, subsistence, and other necessary expenses incurred in the performance of their duties as directors of the corporation.
(e)
The directors of the corporation shall adopt such bylaws, policies, and administrative provisions as are necessary to the functioning of the corporation and consistent with the provisions of this title.
(f)
A director who is necessarily absent from a meeting of the board, or of a committee of the board, may participate in such meeting through a duly designated representative who is serving, pursuant to appointment by the President of the United States, by and with the advice and consent of the Senate, in the same department, agency, corporation, or instrumentality as the absent director, or in the case of the Comptroller of the Currency, through a duly designated Deputy Comptroller.
(g)
The presence of a majority of the board members, or their representatives as provided in subsection (f), shall constitute a quorum.
(h)
The corporation shall be subject to the provisions of section 552 of title 5, United States Code.
(i)
All meetings of the board of directors will be conducted in accordance with the provisions of section 552b of title 5, United States Code.

officers and employees
Sec. 605.
(a)
The board shall have power to select, employ, and fix the compensation2 and benefits of such officers, employees, attorneys, and agents as shall be necessary for the performance of its duties under this title, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, classification, and General Schedule pay rates, except that no officer, employee, attorney, or agent of the corporation may be paid compensation2 at a rate in excess of the rate for level IV of the Executive Schedule, except that the board-appointed officers may be paid salary at a rate not to exceed level II of the Executive Schedule. The Corporation shall also apply the provisions of section 5307(a)(1), (b)(1) and (b)(2) of title 5, United States Code, governing limitations on certain pay as if its employees were Federal employees receiving payments under title 5.
^2
Public Law 108–199, 118 Stat. 913, amended this subsection by striking “compensation” and inserting “salary”, but did not specify which occurrence of the term to strike.
(b)
The directors of the corporation shall appoint an executive director who shall serve as chief executive officer of the corporation.
(c)
The executive director of the corporation, subject to approval by the board, may appoint and remove such employees of the corporation as he determines necessary to carry out the purposes of the corporation.
(d)
No political test or political qualification shall be used in selecting, appointing, promoting, or taking any other personnel action with respect to any officer, agent, or employee of the corporation or of any recipient, or in selecting or monitoring any grantee, contractor, or person or entity receiving financial assistance under this title.
(e)
Officers and employees of the corporation shall not be considered officers or employees of the United States, and the corporation shall not be considered a department, agency, or instrumentality of the Federal Government. The corporation shall be subject to administrative and cost standards issued by the Office of Management and Budget similar to standards applicable to non-profit grantees and educational institutions. [42 U.S.C. 8104]

powers and duties
Sec. 606.
[42 U.S.C. 8105]
(a)
(1)
The corporation shall continue the work of the Urban Reinvestment Task Force in establishing neighborhood housing services programs in neighborhoods throughout the United States, monitoring their progress, and providing them with grants and technical assistance. For the purpose of this paragraph, a neighborhood housing services program may involve a partnership of neighborhood residents and representatives of local governmental and financial institutions, organized as a State-chartered non-profit corporation, working to bring about reinvestment in one or more neighborhoods through a program of systematic housing inspections, increased public investment, increased private lending, increased resident investment, and a revolving loan fund to make loans available at flexible rates and terms to homeowners not meeting private lending criteria.
(2)
The corporation shall continue the work of the Urban Reinvestment Task Force in identifying, monitoring, evaluating, and providing grants and technical assistance to selected neighborhood preservation projects which show promise as mechanisms for reversing neighborhood decline and improving the quality of neighborhood life.
(3)
The corporation shall experimentally replicate neighborhood preservation projects which have demonstrated success, and after creating reliable development processes, bring the new programs to neighborhoods throughout the United States which in the judgment of the corporation can benefit therefrom, by providing assistance in organizing programs, providing grants in partial support of program costs, and providing technical assistance to ongoing programs.
(4)
The corporation shall continue the work of the Urban Reinvestment Task Force in supporting Neighborhood Housing Services of America, a nonprofit corporation established to provide services to local neighborhood housing services programs, with support which may include technical assistance and grants to expand its national loan purchase pool and may contract with it for services which it can perform more efficiently or effectively than the corporation.
(5)
The corporation shall, in making and providing the foregoing grants and technical and other assistance, determine the reporting and management restrictions or requirements with which the recipients of such grants or other assistance must comply. In making such determinations, the corporation shall assure that recipients of grants and other assistance make available to the corporation such information as may be necessary to determine compliance with applicable Federal laws.
(b)
To carry out the foregoing purposes and engage in the foregoing activities, the corporation is authorized—
(1)
to adopt, alter, and use a corporate seal;
(2)
to have succession, until dissolved by Act of Congress;
(3)
to make and perform contracts, agreements, and commitments;
(4)
to sue and be sued, complain and defend, in any State, Federal, or other court;
(5)
to determine its necessary expenditures and the manner in which the same shall be incurred, allowed, and paid, and appoint, employ, and fix and provide for the compensation of consultants, without regard to any other law, except as provided in section 608(d);
(6)
to settle, adjust, and compromise, and with or without compensation or benefit to the corporation to release or waive in whole or in part, in advance or otherwise, any claim, demand, or right of, by, or against the corporation;
(7)
to invest such funds of the corporation in such investment as the board of directors may describe;
(8)
to acquire, take, hold, and own, and to deal with and dispose of any property; and
(9)
to exercise all other powers that are necessary and proper to carry out the purposes of this title.
(c)
(1)
The corporation may contract with the Office of Neighborhood Reinvestment of the Federal home loan banks for all staff, services, facilities, and equipment now or in the future furnished by the Office of Neighborhood Reinvestment to the Urban Reinvestment Task Force, including receiving the services of the Director of the Office of Neighborhood Reinvestment as the corporation's executive director.
(2)
The corporation shall have the power to award contracts and grants to—
(A)
neighborhood housing services corporations and other nonprofit corporations engaged in neighborhood preservation activities; and
(B)
local governmental bodies.
(3)
The Secretary of Housing and Urban Development, the Federal Housing Finance Agency and the Federal home loan banks, the Board of Governors of the Federal Reserve System and the Federal Reserve banks, the Federal Deposit Insurance Corporation, and the Comptroller of the Currency, the National Credit Union Administration or any other department, agency, or other instrumentality of the Federal Government are authorized to provide funds, services and facilities, with or without reimbursement, necessary to achieve the objectives and to carry out the purposes to this title.
(d)
(1)
The corporation shall have no power to issue any shares of stocks, or to declare or pay any dividends.
(2)
No part of the income or assets of the corporation shall inure to the benefit of any director, officer, or employee, except as reasonable compensation for services or reimbursement for expenses.
(3)
The corporation may not contribute to or otherwise support any political party or candidate for elective public office.

reports and audits
Sec. 607.
[42 U.S.C. 8106]
(a)
The corporation shall publish an annual report which shall be transmitted by the corporation to the President and the Congress.3
^3
Section 3003(a)(1) of the Federal Reports Elimination and Sunset Act of 1995, Pub. L. 104–66, which is set forth post in part XII of this compilation, provides that certain provisions of law requiring submittal to Congress of an annual, semiannual, or other regular periodic report shall cease to be effective on May 15, 2000. This subsection is covered by such provision. However, section 1102 of the American Homeownership and Economic Opportunity Act of 2000, Public Law 106–569, which is set forth post in part XII of this compilation, provides that such section 3003(a)(1) shall not apply to the report required to be submitted under this subsection.
(b)
The accounts of the corporation shall be audited annually. Such audits shall be conducted in accordance with generally accepted auditing standards by independent certified public accountants who are certified by a regulatory authority of the jurisdiction in which the audit is undertaken.
(c)
In addition to the annual audit, the financial transactions of the corporation for any fiscal year during which Federal funds are available to finance any portion of its operations may be audited by the General Accounting Office4 in accordance with such rules and regulations as may be prescribed by the Comptroller General of the United States.
^4
Section 8(a) of the GAO Human Capital Reform Act, Public Law 108–271, 118 Stat. 814, approved July 7, 2004, 31 U.S.C. 702 note, redesignated the General Accounting Office as the Government Accountability Office. Subsection (b) of such section provides that “[a]ny reference to the General Accounting Office in any law, rule, regulation, certificate, directive, instruction, or other official paper in force on the date of enactment of this Act shall be considered to refer and apply to the Government Accountability Office.”.
(d)
For any fiscal year during which Federal funds are available to finance any portion of the corporation's grants or contracts, the General Accounting Office4, in accordance with such rules and regulations may be prescribed by the Comptroller General of the United States, may audit the grantees or contractors of the corporation.
(e)
The corporation shall conduct or require each grantee or contractor to provide for an annual financial audit. The report of each such audit shall be maintained for a period of at least five years at the principal office of the corporation.

authorization
Sec. 608.
[42 U.S.C. 8107]
(a)
(1)
There are authorized to be appropriated to the corporation to carry out this title $29,476,000 for fiscal year 1993 and $30,713,992 for fiscal year 1994. Not more than 15 percent of any amount appropriated under this paragraph for any fiscal year may be used for administrative expenses.
(2)
Of the amount appropriated pursuant to this subsection for any fiscal year, amounts appropriated in excess of the amount necessary to continue existing services of the Neighborhood Reinvestment Corporation in revitalizing declining neighborhoods shall be available—
(A)
to expand the national neighborhood housing services network and to assist network capacity development, including expansion of rental housing resources;
(B)
to expand the loan purchase capacity of the national neighborhood housing services secondary market operated by Neighborhood Housing Services of America;
(C)
to make grants to provide incentives to extend low-income housing use in connection with properties subject to prepayment pursuant to the Low-Income Housing Preservation and Resident Ownership Act of 1990;
(D)
to increase the resources available to the national neighborhood housing services network programs for the purchase of multifamily and single-family properties owned by the Secretary of Housing and Urban Development for rehabilitation (if necessary) and sale to low- and moderate-income families; and
(E)
to provide matching capital grants, operating subsidies, and technical services to mutual housing associations for the development, acquisition, and rehabilitation of multifamily and single-family properties (including properties owned by the Secretary of Housing and Urban Development) to ensure affordability by low- and moderate-income families.
(b)
Funds appropriated pursuant to this section shall remain available until expended.
(c)
Non-Federal funds received by the corporation, and funds received by any recipient from a source other than the corporation, shall be accounted for and reported as receipts and disbursements separate and distinct from Federal funds.
(d)
The corporation shall prepare annually a business-type budget which shall be submitted to the Office of Management and Budget, under such rules and regulations as the President may establish as to the date of submission, the form and content, the classifications of data, and the manner in which such budget program shall be prepared and presented. The budget of the corporation as modified, amended, or revised by the President shall be transmitted to the Congress as a part of the annual budget required by chapter 11 of title 31, United States Code. Amendments to the annual budget program may be submitted from time to time.