# § 2181. Policy
The Congress recognizes that shelter, including essential urban development services, is 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 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 and related services for low-income people by demonstrating to local entrepreneurs and institutions that providing low-cost shelter 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. 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.
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**Source Credit**: (Pub. L. 87–195, pt. I, § 221, as added Pub. L. 91–175, pt. I, § 105, Dec. 30, 1969, 83 Stat. 807; amended Pub. L. 92–226, pt. I, § 103(a), Feb. 7, 1972, 86 Stat. 22; Pub. L. 93–189, § 5(1), Dec. 17, 1973, 87 Stat. 717; Pub. L. 93–559, § 7(1), Dec. 30, 1974, 88 Stat. 1796; Pub. L. 94–161, title III, § 311(3), Dec. 20, 1975, 89 Stat. 861; Pub. L. 95–88, title I, § 117(a)(1), Aug. 3, 1977, 91 Stat. 540; Pub. L. 95–424, title I, § 115(a), Oct. 6, 1978, 92 Stat. 950; Pub. L. 98–473, title I, § 101(1) [title V, § 541(a)], Oct. 12, 1984, 98 Stat. 1884, 1903.)
## Editorial Notes
### Codification
Amendment by is based on section 311(a) of H.R. 5119, Ninety-eighth Congress, as passed by the House of Representatives , which was enacted into permanent law by .
### Prior Provisions
A prior , pt. I, , , as amended by , pt. I, § 104(a), , ; , pt. I, § 104(a), , ; , pt. I, § 103(a), , ; , pt. I, § 104(a), (b), , ; , pt. I, § 104(a), , ; , pt. I, § 104(a), , ; , pt. I, § 103, , , related to general authority for foreign investment guaranties by the President, prior to the general reorganization of this subpart by , pt. I, § 105, , .
### Amendments
1984— substituted “, including essential urban development services, is” for “requirements are” after “The Congress recognizes that shelter” and, in the remainder of the section substituted “shelter” for “housing” wherever appearing.
1978— generally revised the statement of policy to clarify that in developing countries, financing, materials and labor for most housing must be obtained from local sources, while United States capital and technical expertise can increase the availability of housing and related services for low-income people by demonstrating financial viability of credit systems for low-cost housing.
1977— struck out provisions that the total face amount of guaranties issued under this section outstanding at any one time not exceed $430,000,000 and added to the enumeration of sections setting out the conditions under which guaranties shall be issued.
1975— substituted “$430,000,000” for “$355,000,000”.
1974— substituted “$355,000,000” for “$305,000,000”.
1973— substituted “$305,000,000” for “$205,000,000”.
1972— substituted “$205,000,000” for “$130,000,000”.
## Statutory Notes and Related Subsidiaries
### Effective Date of 1978 Amendment
Amendment by effective , see , set out as a note under .
### Use of Funds From Sale of Notes for Discharge of Liabilities Under Guaranties; Transfer of Funds and Cancellation of Notes and Interest
> “Hereafter, none of the funds obtained or authorized to be obtained from the sale of notes under authority of paragraph 111(c)(2) of the Economic Cooperation Act of 1948 [
>
> ] or paragraph 413(b)(4)(F) of the Mutual Security Act of 1954 [
>
> ] may be used for the purposes of discharging liabilities under any guaranties (exclusive of informational media guaranties) issued under sections 221(b) and 224 of the Foreign Assistance Act of 1961 [subsec. (b) of this section and
>
> ], sections 202(b) and 413(b)(4) of the Mutual Security Act of 1954 [sections 1872(b) and 1933(b)(4) of this title] and section 111(b)(3) of the Economic Cooperation Act of 1948 [
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> ]. Any portion of the funds in the reserve established pursuant to section 222(e) of the Foreign Assistance Act of 1961 [
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> ] which are attributable to the funds realized from the sale of notes specified in the preceding sentence shall be transferred to the general fund of the Treasury. The Secretary of the Treasury shall cancel all such notes and sums owing and unpaid thereon, including interest to date of cancellation.”
, , , provided that: