DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966 - Sec. 1013 (Homeowners Assistance Program)
HOMEOWNERS ASSISTANCE PROGRAM
Public Law 89–754, as amended
DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966 - Sec. 1013 (Homeowners Assistance Program)
754
111–5
Statute Compilation
United States House of Representatives
Office of the Legislative Counsel
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EN
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Demonstration Cities and Metropolitan Development Act of 1966
476
89
1966-11-03
DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966 - Sec. 1013 (Homeowners Assistance Program)
[Public Law 89–754; Enacted November 3, 1966]
[As Amended Through P.L. 111–5, Enacted February 19, 2009]
[Currency: This publication is a compilation of the text of Public Law 89–754. 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).]

acquisition of certain properties situated at or near military bases which have been ordered to be closed and certain property owned by members of the Armed Forces, Department of Defense and United States Coast Guard civilian employees, and surviving spouses
Sec. 1013.
[42 U.S.C. 3374]
(a)1
^1
So in law. See amendment made by section 1001(a)(1)(B) of division A of Public Law 111–5 (123 Stat. 194).
(1)

Acquisition of property at or near military installations that have been ordered to be closed.—
Notwithstanding any other provision of law, the Secretary of Defense is authorized to acquire title to, hold, manage, and dispose of, or, in lieu thereof, to reimburse for certain losses upon private sale of, or foreclosure against, any property improved with a one- or two-family dwelling which is situated at or near a military base or installation which the Department of Defense has, subsequent to November 1, 1964, ordered to be closed in whole or in part, if—
(A)
the Secretary determines——2
^2
So in law. The amendment made by section 1001(a)(1)(C) of division A of Public Law 111–5 probably should have struck the 1 em dash that appeared after the word “determines” in the matter to be struck or not included one at the end of the matter to be inserted.
(i)
that the owner of such property is, or has been, a Federal employee employed at or in connection with such base or installation (other than a temporary employee serving under a time limitation, a nonappropriated fund instrumentality employee employed at a nonappropriated fund instrumentality operated in connection with such base or installation, or a member of the Armed Forces of the United States assigned thereto;
(ii)
that the closing of such base or installation, in whole or in part, has required or will require the termination of such owner's employment or service at or in connection with such base or installation or, in the case of a member of the Armed Forces not assigned to that base or installation at the time of public announcement of such closing, will prevent any reassignment of such member to the base or installation; and
(iii)
that as the result of the actual or pending closing of such base or installation, in whole or in part, or if as the result of such action and other similar action in the same area, there is no present market for the sale of such property upon reasonable terms and conditions; or
(B)
the Secretary determines—
(i)
that the conditions in clauses (i) and (ii) of subparagraph (A) have been met;
(ii)
that the closing or realignment of the base or installation resulted from a realignment or closure carried out under the 2005 round of defense base closure and realignment under the Defense Base Closure and Realignment Act of 1990 (part XXIX of Public Law 101–510; 10 U.S.C. 2687 note);
(iii)
that the property was purchased by the owner before July 1, 2006;
(iv)
that the property was sold by the owner between July 1, 2006, and September 30, 2012, or an earlier end date designated by the Secretary;
(v)
that the property is the primary residence of the owner; and
(vi)
that the owner has not previously received benefit payments authorized under this subsection.
(2)

Homeowner assistance for wounded members of the armed forces, department of defense and united states coast guard civilian employees, and their spouses.—
Notwithstanding any other provision of law, the Secretary of Defense is authorized to acquire title to, hold, manage, and dispose of, or, in lieu thereof, to reimburse for certain losses upon private sale of, or foreclosure against, any property improved with a one- or two-family dwelling which was at the time of the relevant wound, injury, or illness, the primary residence of—
(A)
any member of the Armed Forces in medical transition who—
(i)
incurred a wound, injury, or illness in the line of duty during a deployment in support of the Armed Forces;
(ii)
is disabled to a degree of 30 percent or more as a result of such wound, injury, or illness, as determined by the Secretary of Defense; and
(iii)
is reassigned in furtherance of medical treatment or rehabilitation, or due to medical retirement in connection with such disability;
(B)
any civilian employee of the Department of Defense or the United States Coast Guard who—
(i)
was wounded, injured, or became ill in the performance of his or her duties during a forward deployment occurring on or after September 11, 2001, in support of the Armed Forces; and
(ii)
is reassigned in furtherance of medical treatment, rehabilitation, or due to medical retirement resulting from the sustained disability; or
(C)
the spouse of a member of the Armed Forces or a civilian employee of the Department of Defense or the United States Coast Guard if—
(i)
the member or employee was killed in the line of duty or in the performance of his or her duties during a deployment on or after September 11, 2001, in support of the Armed Forces or died from a wound, injury, or illness incurred in the line of duty during such a deployment; and
(ii)
the spouse relocates from such residence within 2 years after the death of such member or employee.
(3)

Temporary homeowner assistance for members of the armed forces permanently reassigned during specified mortgage crisis.—
Notwithstanding any other provision of law, the Secretary of Defense is authorized to acquire title to, hold, manage, and dispose of, or, in lieu thereof, to reimburse for certain losses upon private sale of, or foreclosure against, any property improved with a one- or two-family dwelling situated at or near a military base or installation, if the Secretary determines—
(A)
that the owner is a member of the Armed Forces serving on permanent assignment;
(B)
that the owner is permanently reassigned by order of the United States Government to a duty station or home port outside a 50-mile radius of the base or installation;
(C)
that the reassignment was ordered between February 1, 2006, and September 30, 2012, or an earlier end date designated by the Secretary;
(D)
that the property was purchased by the owner before July 1, 2006;
(E)
that the property was sold by the owner between July 1, 2006, and September 30, 2012, or an earlier end date designated by the Secretary;
(F)
that the property is the primary residence of the owner; and
(G)
that the owner has not previously received benefit payments authorized under this subsection.
(b)
(1)
In order to be eligible for the benefits of subsection (a)(1), a civilian employee or a member of the Armed Forces—
(A)
must be assigned to or employed at or in connection with the installation or activity at the time of public announcement of the closure action, or employed by a nonappropriated fund instrumentality operated in connection with such base or installation;
(B)
must have been transferred from such installation or activity, or terminated as an employee as a result of a reduction in force, within six months prior to public announcement of the closure action; or
(C)
must have been transferred from the installation or activity on an overseas tour within three years prior to public announcement of the closure action.
(2)
A member of the Armed Forces shall also be eligible for the benefits of subsection (a)(1) if the member—
(A)
was transferred from the installation or activity within three years prior to public announcement of the closure action; and
(B)
in connection with the transfer, was informed of a future, programmed reassignment to the installation.
(3)
The eligibility of a civilian employee and member of the Armed Forces under paragraph (1) and a member of the Armed Forces under paragraph (2) for benefits under subsection (a)(1) in connection with the closure of an installation or activity is subject to the additional conditions set out in paragraphs (4) and (5).
(4)
At the time of public announcement of the closure action, or at the time of transfer or termination as set forth above, such personnel or employees must—
(A)
have been the owner-occupant of the dwelling, or
(B)
have vacated the owned dwelling as a result of being ordered into on-post housing during a six-month period prior to the closure announcement.
(5)
As a consequence of such closure such employees or personnel must—
(A)
be required to relocate because of military transfer or acceptance of employment beyond a normal commuting distance from the dwelling for which compensation is sought, or
(B)
be unemployed, not as a matter of personal choice, and able to demonstrate such financial hardship that they are unable to meet their mortgage payments and related expenses.
(c)3
^3
So in law. See amendment made by section 1001(a)(3)(A) of division A of Public Law 111–5 (123 Stat. 194).
(1)

Homeowner assistance related to closed military installations.—
(A)

In general.—
Such persons as the Secretary of Defense may determine to be eligible under the criteria set forth in subsection (a)(1) shall elect either—
(i)
to receive a cash payment as compensation for losses which may be or have been sustained in a private sale, in an amount not to exceed the difference between—
(I)
95 per centum of the fair market value of their property (as such value is determined by the Secretary of Defense) prior to public announcement of intention to close all or part of the military base or installation; and
(II)
the fair market value of such property (as such value is so determined) at the time of the sale; or
(ii)
to receive, as purchase price for their property, an amount not to exceed 90 per centum of prior fair market value as such value is determined by the Secretary of Defense, or the amount of the outstanding mortgages.
(B)

Reimbursement of expenses.—
The Secretary may also pay a person who elects to receive a cash payment under subparagraph (A) an amount that the Secretary determines appropriate to reimburse the person for the costs incurred by the person in the sale of the property if the Secretary determines that such payment will benefit the person and is in the best interest of the United States.
(2)

Homeowner assistance for wounded individuals and their spouses.—
(A)

In general.—
Persons eligible under the criteria set forth in subsection (a)(2) may elect either—
(i)
to receive a cash payment as compensation for losses which may be or have been sustained in a private sale, in an amount not to exceed the difference between—
(I)
95 per centum of prior fair market value of their property (as such value is determined by the Secretary of Defense); and
(II)
the fair market value of such property (as such value is determined by the Secretary of Defense) at the time of sale; or
(ii)
to receive, as purchase price for their property an amount not to exceed 90 per centum of prior fair market value as such value is determined by the Secretary of Defense, or the amount of the outstanding mortgages.
(B)

Determination of benefits.—
The Secretary may also pay a person who elects to receive a cash payment under subparagraph (A) an amount that the Secretary determines appropriate to reimburse the person for the costs incurred by the person in the sale of the property if the Secretary determines that such payment will benefit the person and is in the best interest of the United States.
(3)

Homeowner assistance for permanently reassigned individuals.—
(A)

In general.—
Persons eligible under the criteria set forth in subsection (a)(3) may elect either—
(i)
to receive a cash payment as compensation for losses which may be or have been sustained in a private sale, in an amount not to exceed the difference between—
(I)
95 per centum of prior fair market value of their property (as such value is determined by the Secretary of Defense); and
(II)
the fair market value of such property (as such value is determined by the Secretary of Defense) at the time of sale; or
(ii)
to receive, as purchase price for their property an amount not to exceed 90 per centum of prior fair market value as such value is determined by the Secretary of Defense, or the amount of the outstanding mortgages.
(B)

Determination of benefits.—
The Secretary may also pay a person who elects to receive a cash payment under subparagraph (A) an amount that the Secretary determines appropriate to reimburse the person for the costs incurred by the person in the sale of the property if the Secretary determines that such payment will benefit the person and is in the best interest of the United States.
(4)

Compensation and limitations related to foreclosures and encumbrances.—
Cash payment as compensation for losses sustained in a private sale shall not be made in any case in which the property is encumbered by a mortgage loan guaranteed, insured, or held by a Federal agency unless such mortgage loan is paid, assumed by a purchaser satisfactory to such Federal agency, or otherwise fully satisfied at or prior to the time such cash payment is made. Except in cases of payment as compensation for losses, in the event of foreclosure by mortgagees commenced on or after public announcement of intention to close all or part of the military base or installation, the Secretary of Defense may reimburse or pay on account of eligible persons such sums as may be paid or be otherwise due and owing by such persons as the result of such foreclosure, including (without limiting the generality of the foregoing) direct costs of judicial foreclosure, expenses and liabilities enforceable according to the terms of their mortgages or promissory notes, and the amount of debts, if any, established against such persons by a Federal agency in the case of loans made, guaranteed, or insured by such agency following liquidation of the security for such loans.
(d)
There shall be in the Treasury a fund which shall be available to the Secretary of Defense for the purpose of extending the financial assistance provided above. The capital of such fund shall consist of such sums as may, from time to time, be appropriated thereto, and shall consist also of receipts from the management, rental, or sale of properties acquired under this section, which receipts shall be credited to the fund and shall be available, together with funds appropriated therefor, for purchase or reimbursement purposes as provided above, as well as to defray expenses arising in connection with the acquisition, management, and disposal of such properties, including payment of principal, interest, and expenses of mortgages or other indebtedness thereon, and including the cost of staff services and contract services, costs of insurance, and other indemnity. Any part of such receipts not required for such expenses shall be covered into the Treasury as miscellaneous receipts. Properties acquired under this section shall be conveyed to, and acquired in the name of, the United States. The Secretary of Defense shall have the power to deal with, rent, renovate, and dispose of, whether by sales for cash or credit or otherwise, any properties so acquired: Provided, however, That no contract for acquisition, or acquisition, shall be deemed to constitute a contract for or acquisition of family housing units in support of military installations or activities within the meaning of section 406(a) of the Act of August 30, 1957 (42 U.S.C. 1594i)4, nor shall it be deemed a transaction within the contemplation of section 2662 of title 10, United States Code: Provided further, That no properties in foreign countries shall be acquired under this section, except in connection with compensation for property located on a base or installation pursuant to subsection (1).
^4
Section 406(a) of the Act of August 30, 1957, was repealed by section 7(3) of Public Law 97–214 (96 Stat. 173).
(e)
Payments from the fund created by this section may be made in lieu of taxes to any State or political subdivision thereof, with respect to real property, including improvements thereon, acquired and held under this section. The amount so paid for any year upon such property shall not exceed the taxes which would be paid to the State or subdivision, as the case may be, upon such property if it were not exempt from taxation, and shall reflect such allowance as may be considered appropriate for expenditures, if any, by the Government for streets, utilities, or other public services to serve such property.
(f)
The title to any property acquired under this section, the eligibility for, and the amounts of, cash payable, and the administration of the preceding provisions of this section, shall conform to such requirements, and shall be administered under such conditions and regulations, as the Secretary of Defense may prescribe. Such regulations shall also prescribe the terms and conditions under which payments may be made and instruments accepted under this section, and all the determinations and decisions made pursuant to such regulations by the Secretary of Defense regarding such payments and conveyances and the terms and conditions under which they are approved or disapproved, shall be final and conclusive and shall not be subject to judicial review.
[Subsection (g) was repealed by section 1001(a)(4) of division A of Public Law 111–5.]
(h)
Section 223(a)(8) of the National Housing Act is amended to read as follows:
“(8)
executed in connection with the sale by the Government of any housing acquired pursuant to section 1013 of the Demonstration Cities and Metropolitan Development Act of 1966.”
(i)
No funds may be appropriated for the acquisition of any property under authority of this section unless such funds have been specifically authorized for such purpose in a military construction authorization act, and no moneys in the fund created pursuant to subsection (d) of this section may be expended for any purpose except as may be provided in appropriation Acts.
(j)
Section 108 of the Housing and Urban Development Act of 1965 is repealed.
(k)
The authority provided by this section to the Secretary of Defense shall also be available when the Department of Defense has ordered a reduction in the scope of operations at a military base or installation. All references in subsections (a), (b), (c), (n), and (o) to “closures” or “closings” or words of similar effect shall be deemed to include the reduction in scope of operations at a base or installation.
(l)
Notwithstanding the provisions of subsection (a)(1)(A)(ii) and subsection (b)(5), Federal employees or military personnel employed at or near a military base or installation outside the United States who are otherwise eligible under the criteria as set forth above shall be entitled to compensation for losses arising (1) out of the sale of property, or (2) out of the inability to sell property located on a base or installation, incident to the owner's transfer, reassignment, or involuntary termination of employment, which results in his relocation. Such employees or military personnel whose property is located off a base or installation shall be entitled to compensation under subsection (c) for losses sustained in private sales. Such employees or personnel whose property is located on a base or installation, who sell or are unable to find a purchaser for such property, may surrender their interest in such property to the United States, and shall be entitled to compensation, notwithstanding lack of ownership of the land on which such property is located, in an amount equal to (A) 90 per centum of the sum of the present owner's purchase price of the dwelling and improvements, and all costs of ownership including interest on notes, utilities and services, maintenance and insurance, less (B) the total of all housing allowances received from the Government during ownership and occupancy of the dwelling, all rents collected, and the sale price, if any, received for the property, as determined by the Secretary of Defense: Provided, however, That the maximum compensation shall in no event exceed 90 per centum of the unamortized portion of the cost of the property, including improvements, at the time ownership is terminated, as reflected in the amortization schedule, if any, relating to such property. For the purpose of this subsection, the term “United States” means the several States and the District of Columbia.
(m)
In addition to the coverage provided above, the benefits of subsection (a)(1) shall apply, as to closure actions in the several States and the District of Columbia announced after April 1, 1973, to otherwise eligible employees or personnel who are (1) employed or assigned either at or near the base or installation affected by the closure action, and (2) are required to relocate, due to transfer, reassignment or involuntary termination of employment, for reasons other than the closure action.
(n)
(1)
Assistance under subsection (a)(1) shall be provided by the Secretary of Defense with respect to Coast Guard bases and installations ordered to be closed, in whole or in part, after January 1, 1987. Such assistance shall be provided under terms equivalent to those under which assistance is provided under this section for closings of military bases and installations which are under the jurisdiction of the Secretary of Defense.
(2)
The Secretary of the department in which the Coast Guard is operating, if other than the Department of Defense, shall reimburse the Secretary of Defense for expenditures under subsection (a)(1) made by the Secretary of Defense with respect to closings of Coast Guard bases and installations ordered when the Coast Guard is not operating as a service in the Navy. The Secretary of Defense and the Secretary of the department in which the Coast Guard is operating shall enter into an agreement under which the Secretary of the department in which the Coast Guard is operating shall carry out such reimbursement.
(o)
(1)
Assistance under subsection (a)(1) shall be provided by the Secretary of Defense with respect to nonappropriated fund instrumentality employees adversely affected by the closure of a base or installation ordered to be closed, in whole or in part, after December 31, 1988.
(2)
Notwithstanding subsection (b), a civilian employee who is serving overseas and is entitled to reemployment by the Federal Government (including a nonappropriated fund instrumentality of the United States) at or in connection with a base or installation ordered to be closed, in whole or in part, shall be entitled to the benefits of subsection (a)(1) to the same extent as an employee employed at or in connection with that base or installation.
(3)
All payments to a nonappropriated fund instrumentality employee under this section shall be made from the funds available to the Secretary of Defense under subsection (d).
(p)

Definitions.—
In this section:
(1)
the term “Armed Forces” has the meaning given the term “armed forces” in section 101(a) of title 10, United States Code;
(2)
the term “civilian employee” has the meaning given the term “employee” in section 2105(a) of title 5, United States Code;
(3)
the term “medical transition”, in the case of a member of the Armed Forces, means a member who—
(A)
is in Medical Holdover status;
(B)
is in Active Duty Medical Extension status;
(C)
is in Medical Hold status;
(D)
is in a status pending an evaluation by a medical evaluation board;
(E)
has a complex medical need requiring six or more months of medical treatment; or
(F)
is assigned or attached to an Army Warrior Transition Unit, an Air Force Patient Squadron, a Navy Patient Multidisciplinary Care Team, or a Marine Patient Affairs Team/Wounded Warrior Regiment; and
(4)
the term “nonappropriated fund instrumentality employee” means a civilian employee who—
(A)
is a citizen of the United States; and
(B)
is paid from nonappropriated funds of Army and Air Force Exchange Service, Navy Resale and Services Support Office, Marine Corps exchanges, or any other instrumentality of the United States under the jurisdiction of the Armed Forces which is conducted for the comfort, pleasure, contentment, or physical or mental improvement of members of the Armed Forces.