7 1 (2) The members of the Board who are not otherwise 2 employed by the United States shall receive compensation 3 for service as members at the rate provided for individuals 4 occupying a position under level II of the Executive Sched5 ule (5 U.S.C. 5313). 6 (3) No director, officer, attorney, agent, or employee 7 of the Corporation shall in any manner, directly or indirectly,. 8 participate in the deliberation upon, or the determination of, 9 any question affecting his personal interests, or the interests 10 of any corporation, partnership, or association in which he 11 has a direct or indirect personal interest. 12 13 DEMONSTRATION PROGRAM SEC. 5. (a) In order to provide for an effective demon14 stration program, the Corporation shall carry out its func15 tions in three metropolitan housing market areas. In select16 ing the areas for the purpose of such demonstration, the 17 Board of Directors should take into account the necessity for 18 local cooperation and assistance and the extent to which ap19 propriate local officials in any area being considered for se20 lection have demonstrated an interest in cooperating with 21 and assisting the Corporation in carrying out its functions. 22 The Board of Directors shall establish policies which require 23 the officers and employees of the Corporation to consult, on a continuing basis, with local officials and affected residents of 8 1 a selected area with respect to matters of mutual interest and 2 concern. 3 (b) The Corporation shall, for the purpose of the dem4 onstration program, limit its activities to metropolitan hous5 ing market areas where the abandonment of residential prop6 erty as defined in section 3 is substantial. 7 (c) In carrying out its functions under section 6, not8 withstanding the provisions of such section, the Corporation 9 shall 10 11 12 13 14 15 16 17 18 (1) comply with any applicable community development plan or program; (2) comply with any applicable housing plan or program; and (3) hold public hearings in any case where condemnation proceedings or a change in land use is proposed by the Corporation if such hearings are not required by local law in such a case. (d) Upon the expiration of five full calendar years fol19 lowing the date of enactment of this Act, the Corporation 20 may not exercise its power to acquire real property, except 21 in the case of an acquisition in connection with a default on a 22 mortgage held by it. FUNCTIONS OF THE CORPORATION SEC. 6. (a) Whenever the Corporation has probable cause to believe that a residential property is abandoned, the 9 1 Corporation is authorized, on its own motion or at the re2 quest of a Government agency or a federally related financial 3 institution having an interest in such property, to institute 4 proceedings in accordance with the provisions of this section 5 to protect the interests of the United States. 10 6 (b) (1) In the case of abandoned residential property 7, subject to a mortgage which is insured or guaranteed by an 8 agency of the United States, the Corporation may file in the 9 United States district court wherein the property is located an action for forfeiture of such property to the United States, 11 and an application for an order to seize and take possession 12 of such property as the receiver of the court. An order to 13 seize and take possession shall be issued only on affidavits 14 which are sworn to before a United States district court 15 judge or a United States magistrate, and which establish 16 the grounds for issuing the order. If the judge or magistrate 17 finds that grounds for the application exist, or that there is 18 probable cause to believe that they exist, he shall enter an 19 order appointing the Corporation as the court's receiver, and 20 directing the Corporation to seize and take possession of the 21 property. The order shall state the grounds or probable cause 22 for its issuance and the names of the persons whose affidavits 23 have been taken in support thereof. The order may be exe24 cuted and a return made to the court only within ten days 25 after the date of issuance. The Corporation shall execute the 10 1 order and leave with any person at the premises a copy ? thereof and a receipt for any property taken. The Corpora3 tion shall also post a copy of the order and a receipt for any 4 property taken. The return shall be made promptly and shall 5 be accompanied by a written inventory of any property 6 taken. The inventory shall be made in the presence of the 7 applicant for the order and any person at the premises, or in 8 the presence of at least one credible person other than the 9 applicant for the order, and shall be verified. The court shall, 10 upon request, deliver a copy of the inventory to any person claiming an interest in any property taken and to the applicant for the order. 11 12 13 15 (2) In addition to any notice by publication, actual 14 notice of the commencement of any such action, and of the date of the hearing required by paragraph (3) shall be given 16 by the Corporation, in such manner as the court shall direct, 17 to (A) the person who holds title to the property, and (B) 18 any person who has recorded an interest in the property, un19 less after search by the Corporation satisfactory to the court, 20 any such person is not found. 21 (3) Not later than thirty days after the issuance of an 22 order under paragraph (1), the court shall hold a hearing 23 on the merits to determine whether forfeiture should be 24 ordered. If at such hearing, the court determines that the res 25 idential property has been abandoned, and that the abandon 71-509 - 762 11 1 ment of such property tends to constitute a danger to the 2 community or neighborhood, the court shall order that the 3 property be forfeited to the United States and all right, title, 4 and interest therein shall pass to the Corporation. Any such 5 order shall be subject to the payment of just compensation by 6 the Corporation of an amount equal to the value of the in7 terest of any person claiming an interest in the property as 8 established in the hearing on forfeiture by persons or agencies 9 having an interest. In any case in which the person or 10 agency having such an interest is au agency of the United 11 States, the payment by the Corporation shall be in the form 12 of obligations issued by it. 13 14 (4) If the court finds, in any hearing on forfeiture, that a person (other than an agency of the United States) who 15 has an interest in the property failed to protect the interests 16 of the United States by knowingly permitting the continued 17 deterioration of an abandoned property in which it has an in18 terest while having the authority under law or contract to 19 prevent such continuation, it shall give notice of such finding 20 to any agency of the United States which has an insurance or other similar obligation with respect to the property or 22 with respect to the person who has an interest in the property 21 23 so that such agency can take appropriate action to protect the 24 interest of the United States. 25 (5) If at a hearing under paragraph (3) the court de |