diff --git a/0005-libsemanage-genhomedircon-check-usepasswd.patch b/0005-libsemanage-genhomedircon-check-usepasswd.patch
new file mode 100644
index 0000000..30ce4ef
--- /dev/null
+++ b/0005-libsemanage-genhomedircon-check-usepasswd.patch
@@ -0,0 +1,35 @@
+From 511f8bbf779e10152d5af491e8b6a408b8ad666c Mon Sep 17 00:00:00 2001
+From: Vit Mojzis <vmojzis@redhat.com>
+Date: Fri, 30 Oct 2020 17:42:17 +0100
+Subject: [PATCH] libsemanage/genhomedircon: check usepasswd
+
+Only add user homedir contexts when usepasswd = True
+
+Resolves:
+   # grep usepasswd /etc/selinux/semanage.conf
+   usepasswd=False
+   # useradd -Z unconfined_u -d /tmp test
+   # matchpathcon /tmp
+   /tmp	unconfined_u:object_r:user_home_dir_t:s0
+
+Signed-off-by: Vit Mojzis <vmojzis@redhat.com>
+---
+ libsemanage/src/genhomedircon.c | 2 +-
+ 1 file changed, 1 insertion(+), 1 deletion(-)
+
+diff --git a/libsemanage/src/genhomedircon.c b/libsemanage/src/genhomedircon.c
+index d08c88de99a7..18d3d99a1254 100644
+--- a/libsemanage/src/genhomedircon.c
++++ b/libsemanage/src/genhomedircon.c
+@@ -1332,7 +1332,7 @@ static int write_context_file(genhomedircon_settings_t * s, FILE * out)
+ 			s->fallback->home = NULL;
+ 		}
+ 	}
+-	if (user_context_tpl || username_context_tpl) {
++	if ((s->usepasswd) && (user_context_tpl || username_context_tpl)) {
+ 		if (write_username_context(s, out, username_context_tpl,
+ 					   s->fallback) != STATUS_SUCCESS) {
+ 			retval = STATUS_ERR;
+-- 
+2.29.2
+
diff --git a/libsemanage.spec b/libsemanage.spec
index bd85aa6..0e2c27f 100644
--- a/libsemanage.spec
+++ b/libsemanage.spec
@@ -1,10 +1,10 @@
-%define libsepolver 3.1-4
-%define libselinuxver 3.1-4
+%define libsepolver 3.1-5
+%define libselinuxver 3.1-5
 
 Summary: SELinux binary policy manipulation library
 Name: libsemanage
 Version: 3.1
-Release: 4%{?dist}
+Release: 5%{?dist}
 License: LGPLv2+
 Source0: https://github.com/SELinuxProject/selinux/releases/download/20200710/libsemanage-3.1.tar.gz
 # fedora-selinux/selinux: git format-patch -N libsemanage-3.1 -- libsemanage
@@ -14,11 +14,12 @@ Patch0001: 0001-libsemanage-Remove-legacy-and-duplicate-symbols.patch
 Patch0002: 0002-libsemanage-Drop-deprecated-functions.patch
 Patch0003: 0003-libsemanage-Bump-libsemanage.so-version.patch
 Patch0004: 0004-libsemanage-Fix-RESOURCE_LEAK-and-USE_AFTER_FREE-cov.patch
+Patch0005: 0005-libsemanage-genhomedircon-check-usepasswd.patch
 # Patch list end
 URL: https://github.com/SELinuxProject/selinux/wiki
 Source1: semanage.conf
 
-BuildRequires: gcc
+BuildRequires: gcc make
 BuildRequires: libselinux-devel >= %{libselinuxver} swig
 BuildRequires: libsepol-devel >= %{libsepolver} 
 BuildRequires: audit-libs-devel
@@ -29,6 +30,7 @@ BuildRequires: python3-devel
 
 Requires: bzip2-libs audit-libs
 Requires: libselinux%{?_isa} >= %{libselinuxver}
+Obsoletes: libsemanage-compat = 3.1-4
 
 %description
 Security-enhanced Linux is a feature of the Linux® kernel and a number
@@ -54,12 +56,6 @@ Requires: libsemanage-devel%{_isa} = %{version}-%{release}
 The semanage-static package contains the static libraries 
 needed for developing applications that manipulate binary policies. 
 
-%package compat
-Summary: Temporary compat libsemanage.so.1 used for transition to libsemanage.so.2
-
-%description compat
-Temporary compat libsemanage.so.1 used for transition to libsemanage.so.2
-
 %package devel
 Summary: Header files and libraries used to build policy manipulation tools
 Requires: %{name}%{?_isa} = %{version}-%{release}
@@ -132,12 +128,6 @@ InstallPythonWrapper \
   
 cp %{SOURCE1} ${RPM_BUILD_ROOT}/etc/selinux/semanage.conf
 
-%set_build_flags
-CFLAGS="$CFLAGS -fno-semantic-interposition"
-sed -i 's/LIBVERSION = 2/LIBVERSION = 1/' src/Makefile
-%make_build
-cp src/libsemanage.so.1 ${RPM_BUILD_ROOT}/%{_libdir}/libsemanage.so.1
-
 %files
 %{!?_licensedir:%global license %%doc}
 %license COPYING
@@ -155,9 +145,6 @@ cp src/libsemanage.so.1 ${RPM_BUILD_ROOT}/%{_libdir}/libsemanage.so.1
 %files static
 %{_libdir}/libsemanage.a
 
-%files compat
-%{_libdir}/libsemanage.so.1
-
 %files devel
 %{_libdir}/libsemanage.so
 %{_libdir}/pkgconfig/libsemanage.pc
@@ -172,6 +159,10 @@ cp src/libsemanage.so.1 ${RPM_BUILD_ROOT}/%{_libdir}/libsemanage.so.1
 %{_libexecdir}/selinux/semanage_migrate_store
 
 %changelog
+* Fri Nov 20 2020 Petr Lautrbach <plautrba@redhat.com> - 3.1-5
+- Drop and obsolete libsemanage-compat
+- genhomedircon: check usepasswd
+
 * Fri Oct 30 2020 Petr Lautrbach <plautrba@redhat.com> - 3.1-4
 - Drop deprecated functions and duplicated symbols
 - Change library version to libsemanage.so.2