Housing Act of 1986

Housing Act of 1985 - Sets forth specified regulatory authority of the Secretary of Housing and Urban Development regarding the Department of Housing and Urban Development and the Farmers Home Administration.

Title I: Housing Assistance - Amends the United States Housing Act of 1937 to increase on October 1, 1985, the aggregate amount of budget authority available for lower-income housing rental rehabilitation and development grants. Extends budget authority utilization provisions through FY 1986. Authorizes additional development grant appropriations for FY 1986.

Authorizes public housing agencies to determine (with the Secretary's approval) monthly rents (as an alternative to the existing schedule) based on specified factors. Excludes from the definition of "adjusted income" ten percent of a family's income if any member of such family pays either Federal self-employment or FICA taxes.

Requires Federal housing assistance contracts with public housing agencies to be for 15-year periods.

Repeals the provision prohibiting new rental unit construction unless such costs are less than comparative acquisition or rehabilitation costs.

Directs the Secretary within six months to: (1) issue regulations that establish a comprehensive improvement assistance program allocation and distribution system; and (2) report to the Congress regarding such program. Requires such information to be included in the Housing and Urban Development Act annual report.

Amends the Housing Act of 1959 to authorize budget authority through FY 1986 for housing for the elderly and the handicapped. Limits FY 1986 loan appropriations. Prohibits a housing sponsor from requiring mandatory meal participation as a condition for occupancy.

Amends the Housing and Urban-Rural Recovery Act of 1983 to extend the interest ceiling on loans for housing for the elderly and disabled through October 1, 1986.

Authorizes FY 1986 appropriations under the Congregate Housing Service Act of 1978.

Amends the National Housing Act to: (1) limit aggregate amounts for contracts entered into with the budget authority provided on October 1, 1985; and (2) extend assistance payments and housing stimulus authorities through FY 1986.

Amends the United States Housing Act of 1937 to direct the Secretary to use a performance funding system to allocate lower-income housing project payments. Sets forth system factors, including: (1) annual inflation adjustments; (2) operating cost sharing between the Department of Housing and Urban Development and public housing agencies; (3) public housing agency reimbursement for unexpected costs; and (4) treatment of excess revenues and vacant units. Authorizes FY 1986 appropriations. Requires assistance to be paid in monthly installments, beginning by the first month of the fiscal year. Repeals income eligibility provisions.

Establishes the Task Force on Family Housing Needs in Assisted Housing to examine: (1) the problems of families with children living in federally-assisted highrise buildings, or on housing waiting lists; and (2) the need for additional housing construction. Requires a report to the Congress and the Secretary within one year.

States that specified assisted housing shall be developed in accordance with energy conservation standards (to be developed by the Secretary) with regard to cost-effective construction and operating costs.

Amends the United States Housing Act of 1937 to direct the Secretary to prepare and submit to the Congress a comparative study of the impact of assistance under the rent subsidy and payment standard (voucher) programs.

Requires the Secretary to: (1) include in the Housing and Urban Development Act annual report descriptions of specified characteristics of families in assisted housing; (2) and submit to the Congress a public housing management and funding report.

Title II: Rural Housing - Amends the Housing Act of 1949 to authorize FY 1986 programs for: (1) elderly housing loan insurance; (2) mutual and self-help housing; and (3) specified rural housing loan insurance and guarantee authority.

Authorizes FY 1986 appropriations for: (1) rehabilitation grants and loans; (2) structural repairs under the Rural Housing Insurance Fund; (3) farm labor housing; (4) multi-family unit rental assistance; (5) mutual and self-help housing; (6) site loans; (7) housing preservation; (8) rural housing loan funds; (9) low-income housing assistance; and (10) low-income home ownership and rental or cooperative housing.

Requires the Secretary to issue rural housing preservation program implementing regulations within 90 days.

Title III: Program Amendments and Extensions - Part A: Federal Housing Administration Mortgage Insurance Programs - Amends the National Housing Act to authorize FY 1986 programs for: (1) title I insurance; (2) general insurance; (3) low and moderate income housing insurance; (4) co-insurance; (5) graduated payment and indexed mortgage insurance; (6) armed services housing insurance; (7) land development insurance; and (8) group practice facilities insurance.

Directs the Secretary to: (1) establish maximum interest rates for insured mortgages and obligations; and (2) prepare and submit to the Congress a study of voluntary standards for modular homes.

Part B: Flood and Crime Insurance Programs - Amends the National Flood Insurance Act of 1968 to extend flood insurance and emergency implementation of flood insurance program authority through FY 1986.

Amends the National Housing Act to extend crime and riot insurance program authority through FY 1986. Extends contract authority through FY 1987.

Part C: Secondary Mortgage Market Programs - Amends the Federal National Mortgage Association Charter Act to extend the Government National Mortgage Association mortgage-backed securities program through FY 1986.

Prohibits the imposition of fees on Federal National Mortgage Association and Federal Home Loan Mortgage Corporation transactions. Limits fees on Government National Mortgage Association transactions.

Part D: Regulatory and Other Programs - Amends the Housing and Community Development Act of 1974 to authorize FY 1986 appropriations for urban homesteading.

Amends the Housing Act of 1964 to extend rehabilitation loan authority through FY 1986.

Amends the Neighborhood Reinvestment Corporation Act to authorize FY 1986 appropriations.

Amends the Solar Energy and Energy Conservation Bank Act to authorize FY 1986 appropriations.

Amends the Housing and Urban Development Act of 1968 to authorize FY 1986 counseling appropriations.

Amends the Home Mortgage Disclosure Act of 1975 to repeal the October 1, 1985, termination of authority date.

Amends the Energy Conservation in Existing Buildings Act of 1976 to authorize FY 1986 weatherization program appropriations.

Amends the Housing and Urban Development of 1970 to authorize FY 1986 research appropriations.

Authorizes FY 1986 appropriations for the neighborhood development demonstration program.

Title IV: Shelter Assistance for the Homeless and Displaced - Part A: Emergency Shelter Program - Authorizes FY 1986 emergency shelter program appropriations.

Part B: Second Stage Housing for the Homeless and Displaced - Directs the Secretary to: (1) carry out a demonstration program to determine the effectiveness of assisting nonprofit organizations in providing housing and supportive services for homeless persons; and (2) submit to the Congress an interim and a final report. Sets forth program requirements and FY 1986 budget authority.

Title V: Nehemiah Housing Opportunity Grants - Authorizes the Secretary to provide grants to nonprofit organizations to carry out a Nehemiah housing opportunity program to provide loans to families purchasing approved constructed or rehabilitated homes. Requires an annual report to the Congress.

Requires that each loan: (1) be secured by a second mortgage held by the Secretary; (2) not exceed $15,000; (3) be interest-free; and (4) be repayable to the Secretary upon the transfer of such property to an ineligible family under specified circumstances. Sets forth related program requirements, conditions of assistance, and selection criteria.

Establishes in the Treasury the Nehemiah Housing Opportunity Fund. Authorizes FY 1986 appropriations.