among the most fundamental of human needs. Shelter for most people in the developing countries consists largely of domestic materials assembled by local labor. While recognizing that most financing for such shelter 161 must come from domestic resources, the Congress finds that carefully designed programs involving United States capital and expertise can increase the availability of domestic financing for improved shelter 161 and related services for low-income people by demonstrating to local entrepreneurs and institutions that providing low-cost shelter 161 can be financially viable. The Congress reaffirms, therefore, that the United States should continue to assist developing countries in marshalling resources for low-cost shelter. 161 Particular attention should be given to programs which will support pilot projects for low-cost shelter or which will have a maximum demonstration impact on local institutions and national policy. The Congress declares that the long run goal of all such programs should be to develop domestic construction capabilities and to stimulate local credit institutions to make available domestic capital and other management and technological resources required for effective low-cost shelter programs and policies.

Sec. 222.162 Authorization.-(a) To carry out the policy of section 221, the President is authorized to issue guaranties to eligible investors (as defined in section 238(c)) assuring against losses incurred in connection with loans made for projects meeting the criteria set forth in section 221. The total principal amount of guaranties issued under this title or heretofore issued under prior housing guaranty authorities, which are outstanding at any one time, shall not exceed $2,558,000,000.163 The authority of this section shall

velopment Cooperation Act of 1984, as passed by the House on May 10, 1984. Sec. 541(a) enacted sec. 311 of H.R. 5119.

161 Sec. 541(a) of the Foreign Assistance Appropriations Act, 1985, as contained in the Continuing Appropriations Act, 1985 (Public Law 98-473; 98 Stat. 1903) struck out "housing" and inserted in lieu thereof "shelter". This amendment had been included as sec. 311(a)(2) of H.R. 5119, the International Security and Development Cooperation Act of 1984, as passed by the House on May 10, 1984. Sec. 541(a) enacted sec. 311 of H.R. 5119.

162 22 U.S.Č. 2182. Sec. 222, which was added by the FA Act of 1969 and had concerned housing projects in Latin American countries, was amended and restated by sec. 115(a) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 950).

163 This figure was increased from $2,158,000,000 by title II, chapter III, of the Dire Emergency Supplemental Appropriations for 1990 (Public Law 101-302; 104 Stat. 224). This figure was previously increased from $1,958,000,000 by sec. 313(a) of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 190); and from $1,718,000,000 by sec. 541(a) of the Foreign Assistance Appropriations Act, 1985, as contained in the Continuing Appropriations Act, 1985 (Public Law 98-473; 98 Stat. 1903). This amendment had been included as sec. 311(b)(1) of H.R. 5119, the International Security and Development Cooperation Act of 1984, as passed by the House on May 10, 1984. Sec. 541(a) enacted sec. 311 of H.R. 5119. Previously, the amount was raised from $1,555,000,000 to $1,718,000,000 by sec. 310(a) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1535) and from $1,180,000,000 to $1,155,000,000 by sec. 112(a)(1) of Public Law 96-53 (93 Stat. 363).

Congress did not enact an authorization for fiscal year 2005. Instead, the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2005 (division D of Public Law 108-447), waived the requirements for authorization and title II of that Act (118 Stat. 2809) provided the following:

"DEVELOPMENT CREDIT PROGRAM ACCOUNT

"(INCLUDING TRANSFER OF FUNDS)

"For the cost of direct loans and loan guarantees provided by the United States Agency for International Development, as authorized by sections 108 and 635 of the Foreign Assistance Act of 1961, funds may be derived by transfer from funds appropriated by this Act to carry out part I of such Act and under the heading 'Assistance for Eastern Europe and the Baltic States': Provided, That such funds shall not exceed $21,000,000, which shall be made available only for micro and small enterprise programs, urban programs, and other programs which further the

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continue through September 30, 1992.164 The President may issue regulations from time to time with regard to the terms and conditions upon which such guaranties shall be issued and the eligibility of lenders.

(b) Activities carried out under this section shall emphasize—

(1) projects which provide improved home sites to poor families on which to build shelter, and related services;

(2) projects comprised of expandable core shelter units on serviced sites;

(3) slum upgrading projects designed to conserve and improve existing shelter;

(4) shelter projects for low income people designed for demonstration or institution building purposes; and

(5) community facilities and services in support of projects authorized under this section to improve the shelter occupied by the poor.

(c) In issuing guaranties under this section with respect to projects in a country which require the use or conservation of energy, the President shall give consideration to the use of solar energy technologies, where such technologies are economically and technically feasible. Technologies which may be used include solar hot water systems, solar heating and cooling, passive solar heating, biomass conversion, photovoltaic and wind applications, and community-scale solar thermal applications.

purposes of part I of the Act: Provided further, That such costs, including the cost of modifying such direct and guaranteed loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended: Provided further, That funds made available by this paragraph may be used for the cost of modifying any such guaranteed loans under this Act or prior Acts, and funds used for such costs shall be subject to the regular notification procedures of the Committees on Appropriations: Provided further, That the provisions of section 107A(d) (relating to general provisions applicable to the Development Credit Authority) of the Foreign Assistance Act of 1961, as contained in section 306 of H.R. 1486 as reported by the House Committee on International Relations on May 9, 1997, shall be applicable to direct loans and loan guarantees provided under this heading.".

Sec. 306 of H.R. 1486, as reported by the Committee on International Relations, May 9, 1997 H Rept. 105-94), sought to amend the Foreign Assistance Act of 1961 by adding a new sec. 107A to establish the President's authority to use development credit authority where recipients would otherwise not have access to such credit and that credit would be in keeping with U.S. development purposes. For text, see note at sec. 108 of this Act.

See also in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2005 (division D of Public Law 108-447; 118 Stat. 2809), sec. 565, relating to special debt renef for the poorest.

154 Title II of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2000 (H.R. 3422, as introduced on November 17, 1999, enacted by reference in sec. 1000 ax2) of Public Law 106-113; 113 Stat. 1535), under the heading "Urban and Environmental Credit Program Account", waived the second and third sentences of this subsec. for fiscal year 2000, which in effect lifted the ceiling on the outstanding principal amount of guaranties, and continued the authority contained in the section.

Previously, the authority of this section was extended to September 30, 1992, from Sept. 30, 1991. by title II of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (Public Law 101-513; 104 Stat. 1989). Previously the authority was extended from Sept 30, 1990, by title II of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990 (Public Law 101-167; 103 Stat. 1205); from Sept. 30, 1989, by tite II of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 19 (sec. 101(e) of the Continuing Appropriations for 1988, Public Law 100-202; 101 Stat. 1329, from Sept. 30, 1986, by sec. 313(b) of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 190); and from Sept. 30, 1984, by sec. 541(a) of the Foreign Assistance Appropriations Act, 1985 as contained in the Continuing Appropriations Act, 1985 (Public Law 98-473; 98 Stat. 1903). This amendment had been included as sec. 311 b 2) of H.R. 5119, the International Security and Development Cooperation Act of 1984, as passed by the House on May 10, 1984. Sec. 541(a) enacted sec. 311 of H.R. 5119. This authority had been extended previously from Sept. 30, 1982, by sec. 310(a) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1535); and from Sept. 36, 1980, by sec. 112(a)(2) of Public Law 96-53 (93 Stat. 364).

(k) 165 The total principal amount of guaranties issued under this section for each of the fiscal years 1986 and 1987 shall be comparable to the total principal amount of such guaranties issued for fiscal year 1984, subject to the dollar limitations on the issuance of guaranties under this section which are contained in subsection (a) and in appropriation Acts.

Sec. 222A.166 Agricultural and Productive Credit and SelfHelp Community Development Programs.-(a) It is the sense of the Congress that in order to stimulate the participation of the private sector in the economic development of less-developed countries,167 the authority conferred by this section should be used to establish pilot programs 168 to encourage private banks, credit institutions, similar private lending organizations, cooperatives, and private nonprofit development organizations to make loans on reasonable terms to organized groups and individuals residing in a community for the purpose of enabling such groups and individuals to carry out agricultural credit and self-help community development projects for which they are unable to obtain financial assistance on reasonable terms. Agricultural credit and assistance for self-help community development projects should include, but not be limited to, material and such projects as wells, pumps, farm machinery, improved seed, fertilizer, pesticides, vocational training, food industry development, nutrition projects, improved breeding stock for farm animals, sanitation facilities, and looms and other handicraft aids.

(b) To carry out the purposes of subsection (a), the agency primarily responsible for administering part I is authorized to issue guaranties, on such terms and conditions as it shall determine, to private lending institutions, cooperatives, and private nonprofit development organizations 169 assuring against loss of not to exceed 50 per centum of the portfolio of such loans made by any lender to organized groups or individuals residing in a community to enable such groups or individuals to carry out agricultural credit and self-help community development projects for which they are unable to obtain financial assistance on reasonable terms. In no event shall the liability of the United States exceed 75 per centum of any one loan.

(c) The total face amount of guaranties issued under this section outstanding at any one time shall not exceed $20,000,000.170 Not

165 Sec. 313(c) of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat 190) added subsec. (k). This subsection should probably be designated “(d)”. 166 22 U.S.C. 2182a. sec. 8(a)(2) of the FA Act of 1974 (Public Law 93-559) added sec. 222A. 167 Sec. 541(a) of the Foreign Assistance Appropriations Act, 1985, as contained in the Continuing Appropriations Act, 1985 (Public Law 98-473; 98 Stat. 1903), struck out "in not more than six Latin American countries" and "in Latin America". This amendment had been included as sec. 312(a)(1) of H.R. 5119, the International Security and Development Cooperation Act of 1984, as passed by the House on May 10, 1984. Sec. 541(a) enacted sec. 312 of H.R. 5119.

168 Previously such programs were limited to not more than six Latin American countries (Public Law 99-53; 99 Stat. 364).

169 Sec. 541(a) of the Foreign Assistance Appropriations Act, 1985, as contained in the Continuing Appropriations Act, 1985 (Public Law 98-473; 98 Stat. 1903), struck out "in not more than five Latin American countries" at this point. This amendment had been included as sec. 312(a)(2) of H.R. 5119, the International Security and Development Cooperation Act of 1984, as passed by the House on May 10, 1984. Sec. 541(a) enacted sec. 312 of H.R. 5119.

170 Sec. 112(b)(2) of the International Development Cooperation Act of 1979 (Public Law 9653; 93 Stat. 364) struck out “$15,000,000” and inserted in lieu thereof “$20,000,000”.

more than 10 per centum of such sum shall be provided for any one institution, cooperative, or organization.

(d) 171 The Inter-American Foundation shall be consulted in developing criteria for making loans eligible for guaranty coverage in Latin America under this section.

(e) Not to exceed $3,000,000 of the guaranty reserve established under section 223(b) shall be available to make such payments as may be necessary to discharge liabilities under guaranties issued under this section or any guaranties previously issued under section 240 of this Act.

(f) Funds held by the Overseas Private Investment Corporation pursuant to section 236 may be available for meeting necessary administrative and operating expenses for carrying out the provisions of this section through June 30, 1976.

(g) The Overseas Private Investment Corporation shall, upon enactment of this subsection, transfer to the agency primarily responsible for administering part I all obligations, assets, and related rights and responsibilities arising out of, or related to the predecessor program provided for in section 240 of this Act.

(h) The authority of this section shall continue through September 30, 1988.172

(i) Notwithstanding the limitations in subsection (c) of this section, foreign currencies owned by the United States and determined by the Secretary of the Treasury to be excess to the needs of the United States may be utilized to carry out the purposes of this section, including the discharge of liabilities under this subsection. The authority conferred by this subsection shall be in addition to authority conferred by any other provision of law to implement guaranty programs utilizing excess focal currency. 173

Sec. 223.174 General Provisions.-(a) A fee shall be charged for each guaranty issued under section 222 or 222A 175 in an amount to be determined by the President. In the event the fee to

Sec. 586 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2000 (H.R. 3422, enacted by reference in sec. 1000(a)(2) of Public Law 106-113; 113 Stat. 1535), authorized the President to abolish the Inter-American Foundation and made conforming amendments to legislation related to the Inter-American Foundation to reflect the abolishment. These amendments are to be effective and executed only after the Director of the Office of Management and Budget transmits to Congress a certification that responsibilities delegated to the Director, primarily that of administering and winding-up any outstanding obligations of the Inter-American Foundation, have been fully discharged.

That certification and subsequent administration have not yet been executed. Upon execution of these requirements, sec. 586(h)(3) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2000 (H.R. 3422, enacted by reference in sec. 1000(a)(2) of Public Law 106-113; 113 Stat. 1535), will strike subsec. (d).

This authority was extended from Sept. 30, 1986, to Sept. 30, 1988, by sec. 313 (d) of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 190 This authority was previously extended from Sept. 30, 1983 to Sept. 30, 1986, by sec. 54 a of the Foreign Assistance Appropriations Act, 1985 (Public Law 98-473). This amendment had been included as sec. 312(b) of H.R. 5119, the International Security and Development Cooperation Act of 1984, as passed by the House on May 10, 1984. Sec. 541(a) enacted sec. 312 of HR 5119. Such authority had previously been extended from Dec. 31, 1977 to Sept. 30, 1978, by Public Law 95-88 (91 Stat. 540), from Sept. 30, 1978 to Sept. 30, 1979, by Public Law 95424 92 Stat. 951), from Sept. 30, 1979 to Sept. 30, 1982, by Public Law 96-53 (93 Stat. 364), and from Sept. 30, 1982 to Sept. 30, 1983, by Public Law 97-438 (96 Stat. 2286).

Sec. 502(d)(1) of the International Development and Food Assistance Act of 1978 (Public Law 95-424, 92 Stat. 959) repealed subsec. (j), which concerned a one-time reporting require

ment

17422 U.S.C. 2183. Sec. 105 of the FA Act of 1969 (Public Law 91-175) added sec. 223.

Sec. 8(a)(3) of the FA Act of 1974 inserted "section 221, 222, or 222A" in lieu of "section 221 or section 222". Subsequently, sec. 115 of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 951) struck out the reference to sec. 221.

be charged for such type guaranty is reduced, fees to be paid under existing contracts for the same type of guaranty may be similarly reduced.

(b) The amount of $50,000,000 of fees accumulated under prior investment guaranty provisions repealed by the Foreign Assistance Act of 1969, together with all fees collected in connection with guaranties issued under section 222176 or under prior housing guaranty authorities, 177 shall be available for meeting necessary administrative and operating expenses of carrying out the provisions of section 222 and administering housing guaranties heretofore authorized under this title and under 178 prior housing guaranty provisions repealed by the Foreign Assistance Act of 1969 (including, but not limited to expenses pertaining to personnel, supplies, and printing), subject to such limitations as may be imposed in annual appropriation Acts; for meeting management and custodial costs incurred with respect to currencies or other assets acquired under guaranties made pursuant to section 222 176 or heretofore pursuant to this title or 179 prior Latin American and other housing guaranty authorities repealed by the Foreign Assistance Act of 1969; and to pay the cost of investigating and adjusting (including cost of arbitration) claims under such guaranties; and shall be available for expenditure in discharge of liabilities under such guaranties until such time as all such property has been disposed of and all such liabilities have been discharged or have expired, or until all such fees have been expended in accordance with the provisions of this subsection. Fees collected in connection with guaranties issued under section 222A shall likewise be available to meet similar expenses, costs, or liabilities incurred in connection with the programs authorized by that section. 180 All of the foregoing fees referred to in this section together with earnings thereon and other income arising from guaranty operations under this title shall be held in a revolving fund account maintained in the Treasury of the United States. All funds in such account may be invested in obligations of the United States. Any interest or other receipts derived from such investments shall be credited to such account and may be used for the purposes cited in this section. 181

(c) Any payments made to discharge liabilities under guaranties issued under this title or 182 section 222 or heretofore under prior Latin American or other housing guaranty authorities repealed by

176 Sec. 8(a)(3) of the Foreign Assistance Act of 1974 (Public Law 93-559) struck out "this title" and inserted in lieu thereof "section 221 or section 222". Sec. 115(d) of International Development and Food Assistance Act (Public Law 95-424; 92 Stat. 945) struck out reference to section 221.

177 Sec. 117(b)(2)(A) of the International Development and Food Assistance Act of 1977 (Public Law 95-88; 91 Stat. 540) struck out "hereunder" and inserted in lieu thereof "under section 221 or 222 or under prior housing guaranty authorities".

178 Sec. 115(d)(2) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 951) struck out “221 and section 222 of" and inserted in lieu thereof “222 and administering housing guaranties heretofore authorized under this title and under".

179 Sec. 115(d)(4) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 951) inserted "this title or".

180 Sec. 117(b)(2) of the International Development and Food Assistance Act of 1977 (Public Law 95-88; 91 Stat. 540) added this sentence.

181 Sec. 310(b) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1535) added the final three sentences of subsec. (b).

182 Sec. 115(e) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 951) struck out "section 221 or" and inserted in lieu thereof "under this title or".