VUt Qongress, IstiSession.

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House Report No.:590

HOUSING ACT OF 1949
REPORT
FROM THE

COMMITTEE ON BANKING AND CURRENCY
TO ACCOMPANY

H. R. 4009
A BILL TO ESTABLISH A NATIONAL HOUSING OBJECTIVE AND THE POLICY TO BE FOLLOWED IN THE ATTAINMENT THEREOF, TO PROVIDE FEDERAL AID. TO ASSIST SLUMrCLEARANCE PROJECTS AND LOW-RENT PUBLIC HOUSING PROJECTS INITIATED BY LOCAL AGENCIES, TO PROVIDE .FOR FINANCIAL ASSISTANCE BY THE SECRETARY OF AGRICULTURE FOR FARM HOUSING, AND FOR OTHER PURPOSES

MAY 16,1949. Reported with amendments, committed to the Committee of the Whole House on the State of the Union and ordered to be printed

UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1949

401

CONTENTS
I. History of legislation. ; II. Major subjects covered by II. R. 4009 ..._ III. Tlfe housing need-. " " .'-IV. Declaration of national-housing policy . V. Slum dearance and community development and redevelopment VI. Low-rent public-housing VII. Housing research... . VIII. .Farm housing..-. IX. Miscellaneous provisions X. Maximum rates of financial commitments under the bill XI. Scction-by-section analysis of the bill as amended XII. Changes in-existing law— Minority views, of Hon. Frederick C. Smith 6 8 8 lly 13 17 26 29. 31 35 35 62 81

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81ST CONGRESS ) HOUSE OF. EEPEESENTATIVES ( REPORT - 1st Session J . _ ( N o . 590

HOUSING ACT OF 1949

MAY 16, 1949.—Committed to, the Committee of the Whole House oh the State of the Union and ordered to be printed

; SPENCE, from the Committee on Banking and Currency, sub~ mitted the following

REB'ORT
[To accompany H-. K- -1009]

The Committee on Banking and Currency to whom was referred the bill (H. R. 4009) to establish a national housing objective and the policy .to bo followed in the attainment thereof, to provide Federal aid to Assist slum-clearance projects and low-rent public housing projects initiated by local agencies, to provide for financial assistance by the Secretary of Agriculture for farm housing, and for other.Jpurposcs, having considered the same, report favorably thereon, with amendments, and recommend that the bill as amended, do pass. The amendments arc as follows: 1. Page 8, lines 5 and 6, and page 10, lino 18, strike out "not'to exceed in any fiscal year an additional" in each place where such appears therein and insert in lieu thereof "additional amounts aggregating not more than". 2. Page 17, lino 12j insert a comma after "3709" and the following '^'as amended,". 3. Pago 19, line 6, strike out "sections 1 and 2 of the", strike out all of lino 7 and "and 276c)" ou lino 8, and insert hi liou thereof "title 18 U. S. C., section 874, and-of title 40 U. S. C., section 276c,". 4. Pago 21, lino 2, strike out "platted urban or suburban"; and on lines 7 and 8 strike out "unplatted urban or suburban". 5. Pngc 28, lino f>, strike out "need" and insert in lieu thereof "needs". 6. Pago 28, lino 24, strike out "initiated after March 1, 1949,". 7. Pago 29, lino 6, after the word "project" insert "initiated after the date of enactment of the Housing Act of 1949,". 1

2

HOUSING ACT OF 1949

S. Page 2.9, olrike out nil of line 16 and strike out through "scrviccr inch)" oh line 17, and insert in lieu thereof:
families of-decw»£cd veterans and scruecinen whose d..ath ha» .been: determined, •.by the Yetcrai-a' Adininistratiuu to be scr\ice-connected, and third preference shall bt-given to families o'f'other veterans.and servicemen;

9. Page 29, lilies 23 Jj»d ?4, strike out "(including families of deceased veterans or servicemen)'" where such appears therein; 10. Page 30, line 4, insert ~& comma immediately following "connected" and the.following:
and second preference shall be given to families of deceased veterans and servicemen whose death has-been (Ictcnnincd by the Veterans' Administration to be service-connected . . ~- -^ " -

11. Page 30, line 22, after "(5)" strike out the remainder uf said line and strike out oil of lines 23, 24, and 25 and.strike out all of lines I through 6, inclusive, on page 31 and insert in licu-llii-rcui.
Even, contract made pursuant to this Act fur loans (other than.preliminary loans)• annual contributions, or -capital grants for any low-rent housing project completed.after January 1, 1948, shall provide that the cost fcr construction and equipment.of aiich project (excluding land, demolition, and nondwelling facilities! shall not- exceed 81,750 per room (82,500 per room in the case, of Alaska)

12. Page 31, line 2i, strike out "The Authority sliaH mnke'lonns,", strike out all of-Ijnes 22,23 and strike out through the word "projects" on line 24 and insert-in lien thereof: - -Every contract made pursuant jo-this Act (or loans (other than preliminary loans),/un.iial contributions, or capital grants \\ith respect to any l.o\\-rcnt housing project initiated after March 1, 1949, shall provide that such project shall be .undertaken in such a itmnncr that it

13. Page 32, line 0, following the comma strike out "every contract for", strike out all of line 7 and strike out through "March 1, 1949," on,line 8, and insert in lieu thereof " every such contract". 1,4. Page 32, line 24, insert a comma following the word "shall" and the following "if the Authority so requires,". 15. Page 35, line 5, immcdiatcly~following the word "Act" ai.d before the close pui cnthesis insert "and notwithstanding any other provisions of law'L. 16. Page 35, lino_17, strike out "provisions of this Act" and insert in lien thereof "first proviso of subsection 10 (b), or, where applicable, the- second proviso of subsection 10 (c)". 17. Page 41, lines 17 and 18, strike out "not to exceed in any fiscal year an additional amount of" where such appears therein and insert in lieu thereof "additional amounts aggregating not more than". 18. Pago 42, line 17, strike out "not to exceed in any fiscal year an additional" and insert in lieu thereof "additional amounts aggregating not more than"; and on line 20 strike out "not to exceed in any fiscal year" and insert in lieu thereof "amounts aggregating not more than". 19. Pago 43, lino 4, strike out "development" and insert in lieu thereof "commencement of construction". 20. Pago 43, lino 24, before the comma following the word "exemption" insert "and the authorization of payments in lieu of taxes". 21. Pago 44, lino 10, strike out "contributions were payable" and insert in lieu thereof "contribution dates occurred"; and on lines 22 and 23 strike out "contributions arc payable" where such appears therein, and insert in lieu thereof "contribution dates occur".

404

and improvement of such project. or may enter into new leases with public bodies or nonprofit organizations for the operation of such projects. immediate fdlloAvahg Jine 11 insert the following new section 208: TRAXSFEH AND-OPERATION* OF LABOR . upon tho transfer of such properties. including disposal of any such project to a public housing agency for a consideration consisting of the pay incut by the public housing agency to the Aut hyrity. (3) By inserting in the first sentence of subsection 12 (c) following the.. arc repen. (4) By deleting in subsection 12 (d) the word "project" in the three. and liquidation of the properties transferred Uereunder and for administrative expenses in connection therewith shall bu transferred. section 43 (f) of the Bankhcad-Jones Fann Tenant Act. The provisions . (a) Section 2 (d) of the Farmers' Home Administration Act oJF 1940. operation. income t hercfrum after deduction of the amount* necessary for (i) reasonable and proper costs of management. for use by-the Authority as low-rent housing •projects in rural nonfarm areas for families and persons of low income. the Authority may continue present leases and permits. (b) The United-States Housing Act of 1937.. line 21. (ii) payments in lieu of taxes not in excess of 10 per centum of shelter rents. all right. Appropriations to reimburse the Authority for any amounts expended pursuant to this subsection. and (5) By deleting from subsection 12 (e) the word "any" where it first occurs and substituting therefor tho word "the".CAMPS SEC. and facilities hcUbin connection therewith and heretofore administered by the Secretary of Agriculture. Page 48. The Authority is authorized to enter into contracts for disposal of said projects by any of the method* . until expended. approved July 31.!i:dctcrinincd by the Administrator (where preference shall also be given migratory farm workers and their families). strike out "familitics" and insert in lieu thereof "families". Page 45. the Authority may make anyncce-v-ary improvements thereto and may [my any deficits iuciu. 1947. including contractual rights and reversionary interests. during a term of not less than twenty \ oars of al. except as otherwise provided in this subsect' . in accordance with the provisions of tho United States Housing Act of 1937. and by deleting thr word 'project" in the two places \\hcrc it occurs in subsection 12 (c) and substituting tho \\oul "projects".Iaw) be low-rent hv«isiiiR projects subject-to the provisions of this Act. so reserved shall not be higher than such workers can afford. as anicndcd.applicablo to the occupants of accommodations other than standard'family dwellings. is hereby amended as follows: (1> By adding the following new subsection (f) to section 12: "(f) There is'hereby-transferred to the Authority. other than standard family dwellings a. and interest. (2) By inserting in subsection 12 (b) following the w-ord "Federal" the words "low-rent housing".ud in their improvement and administration out of any of the" funds available to it under this Act.".-labor homes. in excess of the funds transferred with such projects. title. and Public Law 29S.. to the Public Housing Administration to bu available.of the second and third sentences of subsection 2 (1) of this Act shall not bc.HOUSING ACT OF 1949 3 22. 23. 20S. may be rcscryd for rental-to migratory agricultural-workers and their families and the runts of the accommodations. maintenance. of currently maturing installments of principal and interest on any indebtedness incurred in connection with such project by the public housing agency with the approval of the Authority. Any or all of the accommodations in-any of such projects. (iii) establishment and maintenance of reasonable and proper reserves. and l'i\) the payment. places where it occurs and substituting tho word "projects". as amende'1.pro\ided in this Act. Such projects when so transferred . Pending sale of such project*. operation.as amended. effective not later than sixty days after the effective date of the Housing Act of 1949.Jabor camps. as anicndcd.led effective as of the date of the transfer of the property and funds authorized hercundcr.shall (notwithstanding any other provision of. held by the Federal. (c) All unexpended balances of funds available f</r the maintenance.n. 405 . Government in and with respect-to all labor-supply center*.word "Federal" the words "low-rent housing". are hereby authorized. Pending sale or lease of said projects to public housing agencies.

and capital grants. Page 77. 27. and the Agency is authorized to transfer to the Planning Commission so much of the funds so advanced as the District Commissioners shall determine ti be necessary for the Planning.ipoweTed to accept financial assistance from the Housing and Home Finance Administrator (hereafter iii this section referred to as the Administrator).OF 1940- 24. and 23. and the basic rate of compensation of such position shall be the same as the basic rate of compensation established for the heads of the Constituent agencies of the Housing and Home Finance Agency. 22. line 8..is hereby amended by renumbering sections 20. covenants. 25. line 12. and the Agency. Page 73.'. Page 78. 29. acquiring real property lor redevelopment of project areas and carrying out any functions authorized undor this Act for which advances of funds.1 conditions as may be prescribed by the Administrator pursuant to title I of the Housing Act of 1949. section 508 and section 509: NATIONAL CAPITAL HOUSING AUTHORITY SEC. Page 55." . Page 54. the National Capital Housing Authority is hereby authorized to acquire sites for low-rent public housing projects assisted under the provisions of the United States Housing Act of 1937. 20. li»:^ 2. respectively. the Agency is authorized to accept from the Administrator advances of funds for surveys and plans in preparation of a project or project.line 6 after the period on said lino insert the following he\v sentence: To facilitate the cooperation of Federal agencies in carrying out such studies or surveys. the benefits provided by titles 1 and II of this Act. 21. the Agency is hereby. 30. Jines 3 and 4.imbufse their appropriation for the cost of such studies or surveys. and to authorize the appropriate agencies operating therein to accept. 26. Commission to carry out its functions under this Act with respect to the project or projects to be assisted under title I of the Housing Act of 1949. 20 and 23 and pa^a 75. may enter into such contracts and agreements as may be necessary.subject to the approva_l of the District Commissioners and subject to such terms. loans. immediately following line 8 insert the following new section: • Sue. DISTRICT OF COLUMBIA PARTICIPATION SKC. and by adding after section 19 a new section to read as follows: "SKc. strike out "321b" and insert in lieu thereof "321h". or desirable for such purposes. convenient. loans. 28. The Administrator shall appoint a Director to administer the pryvisions of thi:: title under the direction and supervision of the Administrator. such Federal agencies are hereby authori/cd to accent funds and re. as amended. . 508. in the form of advances of funds. or capital grants may be made to a local public agency under title I of the Housing Act of 1949. strike put "moneys" where such appears in each place therein and in each instance insert in lieu thereof "monies".4 HOUSING JtCT .authorized and ci. ai. the District of Columbia Redevelopment Act of 1945.tithorizcd by this Act which may be assisted under title I of the Housing Act of 1949. immediately following line 8 insert the following new sections. (a) As an alternative method of financing its authorized operations and functions under the provisions of this Act (in addition to that provided in section 16 of this Act). 3 and 6. "(b) Subject to the approval of the District Commissioners. To make available to the District of Columbia. Page 72. strike out "51* nncl i:\sertah lieu thereof "501". Notwithstanding any other provisions of la_w. in addition to 406 . lines 19. pursuant to I'tlo I of tho Housing Act of 1949. "(c) The District Commissioners arn authorized to include in their annual estimates of appropriations items for administrative expenses which. Page 53. 304. 509. strike out "the State or" wl ere such appears therein. to assist the Agency ii. and 22 thereof as sections 21.

the Agency.rely. the property. Seventy-third Congress. shall be deposited in the Treasury of the LnitecTStatcs to the credit of a special fund or funds. revenues. Expenditure^ from such fund shall be audited. of section 107 of the Ilousing Act of 1949.able pursuant to said section 110 (d) with respect to any-project or project? undertaken by the Agency under a contract or contracts entered into under this section and assisted tinder title I of the Housing Act of 1949.HOUSING ACT OF 1949 & loan or . to. the Administrator is authorized to allow and credit to the Agency. The District Commissioners shall include items for such cash payments in their annual. As such a local public agency for all of the purposes of title I of the Housing Act of 1949. 1934. or projects undertaken by the Agency which arc financed in accordance with this section with assistance under title I of the Housing Act ori949— "(1) sections 3 (f). shall have power to transfer to and shall at a practicable time or times transfer by deeds to the National Capital Ilousing Authority those pieces of real property which. pursuant to section 7 (a) of this Act. upon. in accordance with the approved project area redevclcr^icnt -plan. and.. "(2) the site and use plan for the redevelopment of the area. out of any money. or revenues derived' by the Agency from any such project or projects. "(c). 8i-i- 407 .make cash payments of such-deficiencies from-fuiids of IHc District of Columbia. loans. -the District Commissioners arc hereby authorized to entjr into agreements with the Agency. and there arc hereby authorized to be appropriated. as amended. and 7 (g). in accordance with the approved ].ch agreements shall be paid promptly from funds appropriated for such purpose. income. as amended. area redevelopment plan. Scvcnty-lhiru Congress. in accordance with the requirement. and all moneys in such special fund or-funds are hereby made available for carrying out the purposes of this Act with respect to such. or capital grants made by the Administrator to the Agcncj'. are to be devoted to public housing to be undertaken under Public Law 307. approved June 12. including the payment of any advances-of funds or loans. disbursed. r. in the Treasury not otherwise appropriated. In the event such local grant-s-ih-aid as arc so allowed by the Administrator are no'f sufficient to meet the requirements for local grantSrih-aid pursuant to title I of the ilousing Act of 1949. arc tobe devoted to public housing to be undertaken under Public Law 307. or in the form of proceeds. All receipts of the Agency in connection with any project or projects financed in accordance with this section with assistance under title I of the Hou-ing Act of 1949.project or projects. to issue its obligations evidencing such loans. "'fO It is the purpose and intent of this section to authorize the District Commissioners and the appropriate agencies operating within the District of Columbia to do any and all things necessary to secure financial aid under title I of the Housing Act of 1949.which agreements the Administrator iiay. as amended. together with interest thereon.. "(d) Nutwitlistanding the limitation contained in the lost sentence of section 110 (d) or-in any other provision of title I of the HousingrAct oM949.sources as contemplated bj title I of the Housing Act of 1949. and to pledge as .security for the payment of such loans.jch cash payments. the National Capital Housing Authority shall pay for the same out of any of its funds available for such acquisition. such. approved June 12. and accounted for as arc other funds of the District of Columbia. approved June 12. 3 (k). the amounts necessary to nrovide 'for . included in the redevelopment plan of the project area pursuant to section 6 (b) (2) of this Act.riiject. Any amounts due the Administrator pursuant to any sn. and the last sentence of section 6 (b) (2) of this Act shall not be applicable to those pieces of real property which. whether in the form of advances of funds. Seventy-third Congress. Kept. "(3) notwithstanding any other provisions of this Act. estimates of appropriations.arc necessary for the Agency in carrying out its functions under this section. made by the Administrator or by private sources to the Agency. and-other assets acquired in connection with thp project or projects financed in accordance with this section with assistance under ii. and the interest thereon. 1934. rentals. 1934. approximate extent and location of any land wit<hin the area which is proposed to be used for public housing to be undertaken under Public Law 307.other funds available therefor. the Agency is also authorized to borrow nionoj from the Administrator or from private . local grants-in-aid as are appro. shall include the. "(0 With respect to any project. The District of Columbia Redevelopment Land Agency is licrcoy declared to be a local public agency for all of the purposes of title I of the Housing Act of 1049.no.

in substance. In view of the long con. The conclusions of this special committee with respect to the matters covered by titles 1 and 11 of the bill now being favorably reported were as follows: The Government should establish the legal basis upon uliicli State and local jurisdictions mn\ be encouraged to undertake a systematic program of community development in which the stimulation of lou-rent. SBVBNTY-NINTII CONGRESS In July 19-15 the House Special Committee on Postwar Economic Policy find Planning submitted its report on Postwar Public Works and Construction. would provide Federal financial assistance for the clearance of slums. tho uncnacted provisions of housing legislation which. have received extensive study by the Congress. Hearings on II. financing and opera- " i 408 . R. it was the judgment of your committee that first attention should be directed to II. 4009 were held by your committee during the period from April 7 through May 9. These studies and findings are summarized in the following paragraphs. of furthe. support of its provisions from spokesmen of a wide •variety of citizen groups.. line 6.housing occupies a major place. in the main. and for rural housing. have been passed three times by the Senate. Kept. Page 84. "(h) Nothing contained in this section or in any other section of this Act shall relieve the Administrator of his responsibilities and duties under section 105 (c) or any other section of the Housing Act of 1949. but also by the increasing acceptance of its major objectives even by industry leaders who disagreed with detailed provisions. HISTORY OF THE LEGISLATION' -j . Your commit tee heard testimony r b} a great number of witnesses and was impressed not only by the ovpvwhehninn. 11. and in view of the further fact that they arc designed to meet several. The bill would establish a national housing policy. of the most urgent problem areas in the field of housing. 4009 before taking up various other housing proposals consisting. and which were also approved last year by this committee in the Eightieth Congress (H. strike out "508" and insert in lieu thereof "510"." " _ "" 31. HOUSING ACT OF 1949 title I of the Housing Act of 1949. 6888.6. R. for low-rent public housing. 4009 is one of the large number of housing bills which have been referred to your committee on Banking and Currency during the first session of the Eighty-first Congi ess. previously. This program contemplates local initiative in construction. find would authorize a comprehensive program of housing research. sideration and widespread approval which these proposals had already received. but such obligations or such pledge shall not constitute a debt or obligation of cither the United States of of the District of Columbia. your committee had (he benefit of evidence gathered by several congressional committees o\er a period of five years regarding the nature of (he housing problem and various solutions which have been proposed.L H.' •HEARINGS ON BII. In addition. II. No.improvements to financing aids for private housing. / ~ * I. These are. and on line 10 strike out "509" and insert in lieu thereof ?'511". 2340).

. the Congress decided to conduct a further investigation of the housing problem. The legislative recommendations of (lie Joint Committee on Housing (IT.000 printed pages of testimony. This bill. This committee held hearings in 33 cities in all sections of the country and received more than 6. S. this committee reported favorably II. with comprehensive housing legislation as one of its principal purposes. In. passed S. In addition. the cslablishmcnL of Federal yield insurance for privately owned reht». including interest and amort iza•tion on capital indebtedness. 1592 considered by the Seventy-ninth Congress. the continuance and improvement of Federal financing aids to encourage long-term mortgage financing.Jho_ history of which Jliis report has traced. however. Tlic responsibility of the Federal Government shruld be to provide incentives through the purchase of a percentage of the construction bonds. the extension of Federal financial assistance for additional low-rent public housing under the United States Housing Act of 1937. 80th Cong. Eightieth Congress. was tabled by the Committee o'n Rules. 866 which was pending in the last Congress. and strongly supported. At the conclusion of these heatings. consisting of seven members of this committee anil an equal number from the Committee on Banking and Currency of the Senate. the Congress enacted the Housing Act of 1948. aspects of the housing problem. 2d scss. The Enacted provisions" 409 . a substantially similar bill. the Senate. 866. 1592 before the adjournment of Congress. during the special session of the Congress called by the President. was modified to conform to the recommendations of the Joint Committee on Housing and was approved by the Senate in April 1948. II.-during the second session of the Seventy-ninth Congress..l housing. the Banking and Currency Committee was unable to conclude hearings on S. In July of 1947.to the lo. or yearly payments over a specified period. several of its members conducted special studies on specifii. Kept. and of the successor bill S. Before acting on Jicsc bills. 6888.cal authorities of the difference between the income from rentals and the coats of operation. 1948. known as the WagrierEllender-Taft biL. the major provisions of S. EIGHTIETH CONGRESS Legislation closely parallelling the Wagner-Ellender Taft bill was introduced during the first session of the Eightieth Congress. the Eightieth Congress created the Joint Committee on Housing. In the House. The bill contained a declaration of national housing policy and objectives and provided for the establishment of a permanent ovev-all Federal Housing Agency. In August of 1948. which incorporated some of the provisions of the legislation. the establishment of Federal financial assistance to help cities eliminate slums and blighted areas. the development of plans for an attack on deficiencies in farm housing and the authorization of a comprehensive Federal research program in housing.) corresponded closely with.. 1564. following recommendations both of its Committee on Banking^ and Currency and of the Subcommittee on Housing and Urban Redevelopment of the Senate Committee on Postwar Economic Policy ami Planning. 1592. The House Banking and Currency Committee held further extensive hearings from May 3 through June 8. 1916.HOUSING ACT OOF 1049 - -7 tion.

8 HOUSING ACT OP 1949 included most of the private financing aids contained in the earlier legislation as well as a limited program for housing research directed at building codes and standardized measurements. nor did it contain provisions establishing national housing policy and objectives. other phases of housing not covered in H. low-rentLpubh'c_hojjsmg. or comprehensive housing research. III. 4 10 . Your committee docs not claim that this legislation deals w i t h nil facets of the housing problem. The overwhelming evidence. directed particularly at obtaining progressive reductions in costs which now prevent private enterprise from serving a larger portion of the need. the bill would extend Federal financial assistance for the provision of decent housing for farm families \\lio do not otherwise have moans of obtaining adequate shelter. in combination with existing legislation. is warranted by the importance of housing to the growth. Fifth. 4009 Your committee is convinced. First. Second. MAJOR SunjECTS COVERED BY H. (lie bill would authorize a comprehensive program of technical research and studies in housing. that this bill. farm housing. R. The bill covers five major subjects. Third. During its hearings on II. cither alone or in • unibinatiun w i t h legislation all udy enacted. the Housing Act of 1948 did. 4009.evidence presented during the recent hearings and made available from previous studies of the housing problem.' wealth and security of the Nation. 4009 the committee recched many helpful suggestions as to additional legislation and has before it bills which deal with. the bill would authorize Federal financial assistance to communities in order (lint they may resume local programs of low-rent public housing. This assistance offers the only hope within the foreseeable future of providing adequate housing for urban and rural nonfarm families of low income who arc inadequately housed. both from the lack of progress generally throughout the country and the testimony presented to the committee. R.clearance. is that Federal financial assistance is essential if local communities are to deal effectively with this problem. 4009 as essential to an}* effective housing program which will contribute townrd increasing and improving the general supply of housing throughout the country. Your committee recommends the enactment of H. from the. Such a declaration. R. However. the bill would authorize Federal loans and grants to enable communities to make an effective start on the clearance of slums and blighted areas. R.not contain ihcjm>poscd_provisions of the ejirJiejJcgislatiQn^oi giuir^. Fourth. your committee believes. II. THE HOUSING NKED There is little disagreement that housing constitutes one of the Nation's most serious economic and social proolcms today.comprehensive housing bills arc the subjects covered by the major titles of the bill now being favorably reported by your committee. The unenacted portions of these earlier . the bill would set forth a declaration by the Congress of our national housing objectives and the policies to be followed in attaining them. will provide a sound foundation for a comprehensive housing program.

therefore. we will require 6. your committee had available to it the comprehensive studies and investigation of-the Joint Committee on Housing. or in overT crowded dwellings in which.300. Just to keep up with the increase in the rate of family formation. This data and other material-made available to your .000 dwelling units. When allowance is made for the fact that about 2. It has been building up over several decades. housing has never been replaced as rapidly as it should.committee leads to the conclusion that the Nation must be prepared to build or rehabilitate at least 1. at prices which a large proportion of the American people can afford. a conservative measure of the number of substandard nonfarin uniu> \\hicli need to be replaced or rehabilitated is the number of nonfarin units which the Census Bumvu data indicates heed major repairs.300. Currently available data docs not permit a full statistical measurement of all deficiencies ii: the housing inventory. there will be approximately 39K million nonfarin families which will require separate housing. The latest Census Bureau reports show that. in April of 1947.000 nonfarin dwellings in 19(50.HOUSING ACT OF 1949 9 Although the seriousness of the Nation's housing situation lias been high-lighted since the end of the war by the urgent housing problems of returning veterans. However. Unfortunately.obliged to spend their formative years either in dreary. Looking ahead to 1960. In attempting to get some mensvie of the magnitude of our present and prospective housing requirements.000 units (table 1). the basic problem itself is not a new one. this means there will be need for an effective housing supply of approximately 41. Consequently. after deducting seasonal accommodations ami houses held off the market for one or another reason. together 411 .000 and 300. effective nonfnrni-housing inventory for year-round use was about 32. No progress would have been made" in eliminating the substantial number of imiu which fail to come up to any do :cnt American standard. It results from the fact that over the years vre have never been able to produce enough housing.live iu wholly inadequate and unsuitable accommodations. the Bureau of the Census estimate that. the effective nonfarmhousiug inventory «t the beginning of 1949 is estimated at 34.729.100. iinhcalthful slums.000 uonfarm dwelling units and between 200. If no more than this is accomplished.829.000 farm units a year each year from now to I960. the quality of our housing supply would hr worse in I960 than it is today.100. if substantial progress is to be made in bettering our housing conditions.000 additional nonfarin units to our inventory between now and 1960. and many families have been obliged to. Nor would anything have been done to cope with those currently adequate imfl* which. When allowance is made for a sufficient number of vacancies to provide for reasonable freedom of choice in the selection of the sixe and type of home desired. the effects of poor housing leave their heaviest imprint upon the millions of children who are being .000 new and converted units were added to the supply since April 1947. The maintenance of our way of life and our aspirations as a people and a dcmocracj' depend to a large extent upon these children whose attitudes and minds are being foi mod for the future in the homes of today. normal family life cannot be achieved. will deteriorate during the years ahead.

510 Effective supply of housing (o meet nonfarm needs of as April 10-J7 ' 32.000 units. substandard or inadequate housing in the densely populated suburban communities which surround most of our large cities but which arc not included in the Census Bureau statistics for urban places. it appears that between 2 and 3 million farm homes will need to be built or rehabilitated between now and 1960. or inside toilets. <• 413 . This figure fails to take into account. rcrlra P-70 N'o.000 units is a conservative estimate of the additional replacement or rehabilitation needed takeover these two categories Allowance should also be made for the replacement of housing lost as a result of disaster or similar causes. limiting lodges. April 1017. conversion.li] o( llic OMJIIS. 301 1. although not needing major repairs. In April 1947 the Census Bureau survey showed tlmt 1.il number of nonfnrin duelling units. It also fails to include the effects of continued use upon old houses which today arc in satisfactory condition.16 HOUSING ACT OF 1949 \\ ith those units in urban nrcns which. April 1917.2-18 SuMi. On the basis of the census statistics and testimony presented in the course of the hearings.720 Add: Estimated additions to supply in 10>>7and 10'lS through new construction and conversion 2. according to Bureau of Census . together with the rehabilitation and replacement of substandard housing.725. beginning of 101!) 34. In April 1947 approximately 5.000 units a year) the total job that would have to be done in nonfarm areas by I960 to make substantial progress in meeting the housing problem. lacked inside private bath and flush toilet. In this connection. or roughly one-fifth of all farm dwellings. bathtubs. and that a distressingly large proportion of farm housing fails to measure up to minimum standards for health and decency. S. and of temporary war and veterans' housing units not a part of the permanent housing supply. TAIII. were in these t\vo categoric1'.000. and in addition. Some of the worst overcrowding occurs in farm housing.300.400. your committee calls attention to the fact that the Joint Committee on Housing concluded that ah allowance of 2. involves the construction. however. 820 i U. brings up to some 14. table 1. both occupied and vacant.000 units (or an average of slightly more than 1. units sold or renled but not vet occupied) '.lnc Clinnwtfrlstlcs or tlio United Smirc.K 1. Itiin-. The replacement of these units. over half the units not in need of major repairs failed to have running water. 100 Estimated effective nonfnrin supply. or rehabilitation of some seventeen to eighteen million dwelling units (table 2). ' 34.000. All told.iut: Uninhabitable dwellings — 137 Seasonal collages.600. including both nonfarm and farm housing.—Effective nonjarm housing inventory as a/beginning of 10 j9 (in thousands) Tot. etc 001 Vacant units held off the market (hoarded up mansions. Cnrronl Population Deport*. I II(>u. Your committee appreciates the fact that the problem is not limited to nonfarm areas. Some of the most dilapidated housing is to be found in rural communities. the total job. were in need of major repairs.

has been the implied recognition that the well-being and security of tho home are matters of national public policy. long-range program. A great part of this legislation was orginally enacted to deal with acute problems which became apparent during national emergencies. and numerous measures dealing separately with various aspects of the housing problem have been enacted. communities. There has never been. that it requires a comprehensive. as \\ell as the establishment of several emergency programs. however. and industry and labor in appraising housing activities and progress. 741 IV.. DECLARATION OF NATIONAL HOUSING POLICY • Since the establishment of the Home Loan "Bank System \>y the Seventy-second Congress in 1932. including the economic crisis of the early thirties. labor. and the low-rent public-housing program administered by the Public Housing Administration.HOUSING ACT OF 1949 . These include a system of aids to home financing institutions which is administered by the Home Loan Bank Board. and that the stability of I he home-building industry is essential to the health of the economy. the necessity of shelter to meet the production requirements of World War II. Underlying tho development of these programs. Add: Allowance for 4 percent effective vacancy rate for rent or sale Total.. Your committee believes that such a declaration of national housing goal and policies is needed. 500 1. It would provide a frame of reference for the use of the Congress. ' 39. 413 . But from a considerable part of (his legislation have emerged permanent. the credit insurance programs of the Federal Housing Administration.741 2. COO 41. the local communities. Some of the programs of strictly emergency or experimental character have been discontinued and have been 01 are being liquidated. a statement by the Congress of the national housing objectives or of basic policies as to the respective spheres of activity for industry.829 G. 470 14. 741-17. tation iiced : Add: Total farm new construction and rehabilitation need Total United States housing needs to J9GO > Huremi of the Census estimate of nonfarm families. 000-3.—Housing needs of the United Stales in 1060 (in thousands) Number of nonfnrm fainiliss which will require housing in I960. programs which hnve been continually revised and impro\ed by the Congress to scr\ e changing needs. every successive Congress lias given attention to housing. 11 TABLED. and tho Federal Government in the attainment of those objectives. 271 8.100 34. beginning of 1949 (from table 1) — Net additional number of units which need to be added to the supply by I960 to keep up with rate of family format iun Add: Total replacement and rehabilitation need (from table 2). and the postwar veterans' housing emergency. Total nonfarm ne\v construction conversion and rehabili. the administrative agencies. 000 1C.effective supply of dwelling units needed in I960 Subtract: Estimated effective supplv. It is now well recognized that housing is not a temporary problem \\hich can be solved by emergcncj* measures.

and size for adequate family life. the bill calls for assistance to communities in undertaking positive programs to encourage the production of lower cost. The poiicj. The statement in H. so as to encourage and assist the attainment of the following specific objectives: 1. 4009. is in full accord with those earlier declarations and recommendations. In defining the policy to be followed in attaining this national housing objective. functions. at the regional and Wai levels as well as in Washington.. production. and to enable the housing industry to make its full contribution to an economy of maximum cmplo3'incnt. the policy declaration contains a specific congressional charge and directive to the administrative agencies of the Federal Government to exercise all powers. and 5. The de\eloj)incnt of well-planned. Your committee notes that such policy declarations were contained iii the comprehensive housing bills referred to this committee during the Seventy-ninth Congress and the Eightieth Congress and that a similar declaration was recommended by the Joint Committee on Housing. the bill recognizes that primary reliance has been and must continue to be on private enterprise. R. It recognizes the necessity of attaining a rate of housing production sufficient to overcome the serious housing shortage and to replace slums anil other inadequate housing. housing of good quality. materials. 4009 staler that the general welfare and security of the Nation require the realization as soon as feasible of the goal of a decent home and a suitable living environment for every American family. Furthermore. to the extent that those needs cannot be met through reliance upon private enterprise. 4. the use of standardized dimensions and methods of assembly of home-building materials and equipment. and methods in residential const ruction. The stabilization of the housing industry at a high annual volume of residential construction. The definition of national policy also includes the extension of Federal assistance for slum clearance and for the provision of decent housing for low-inconu families in cities and rural areas. 4009 reflects-the 17 j'cars of experience by the Federal Government in housing activities and the consideration which has been given to basic legislation during the last fe\v 3'ears. II. construction. techniques.declaration in H. The use of new designs.12 HOUSING ACT OF 1949 The policy declaration in H. and duties with respect to housing. 2. integrated residential neighborhoods and the development and redevelopment of communities. R. will be administered within the letter and (he spiiit of this defined national policy. The reduction of the costs of housing without snurifico of such sound standards. It provides that private housing enterprise shall be encouraged to seiye as large a part of the total need ns it can and that governmental assistance should be utilized to the extent fca&ibje to enable prhatc enterprise to serve more of this need. iivability. The production of housing of sound standards of design. Such a declaration of national housing policy can provide tltc ncccssai'3 guide lines now lacking for the concerted and sustained efforts 414 . 3. and purchasing power. and the increase of efficiency in residential construction. To obtain further assurance that all housing acti\ itic& of the Federal Government. while it contains certain improvements.

for the first time.^nrv if the doctor \\unj payout to begin uitli. program to eliminate the Nation's slums. but likewise for existing.y throughout the coimtiy has come evidence. ami be properly related to tho growth and development of the city as a whole. He stated: • Thu Haltiiiiori plan illicit. \\ill generally exceed the return \\hich \\ill~bu reali/. 415 . the prices which must bo paid for . not live there by choice. Slums and blighted areas foster delinquency. disease. A few> like Baltimore.bucoin|mrcil tofir.\ eliminated is by the public acquiMtjon and cleara. labor.prices and . j J . doctor's services.^uul administered in the temporary nb>ence of a doctor.ucc.: i HOUSING ACT OP 1949 ' 13.slum and blighted areas. Because of their present intensive use. Sl-1- . They create demands for welfare. of the extravagant wastes of human and other resources arising from slum conditions.iieo of shim areas ami bj assuring that they will be jvdc\ eloped in accordance \\illi sound plans as to land uses.rents which they can afford to pay. from th. The committee was impressed by the testimony of 'the mayor of Baltimore.prograins arid for the fiirtlierjegislalion wJu'ch the Congress will consider in the future. but long-delayed. Your committee is convinced that ihe only way by wliich slums ma. Such efforts frequently have been credited \\ilh offering an adequate solution to the problem.It will define our policies aiut objectives not only for the substantive programs contained in the pending bill. the effects of which can only be partly measured in the statistics available to j'our committee. communities. that this-method alono will eliminate neithci the slums nor the conditions \\hich they create. and other financial outlays grenllj' in excess of the revenues which cities receive from them. Today about one-fifth of our city families live in shuns and blighted areas. . SLUM CLEARANCE AND COMMUNITY DEVELOPMENT AND REDEVELOPMENT' NEED FOR A SLUMrCLEAIlANCE PROGRAM The provisions of this title offer. and the Federal Government which arc required to help overcome the national housing problem. ~~ V. together \\ith the . They obviously do. From city after c\i. Communities have long been aware of the social and economic costs of these areas but have been unable to take effective steps toward their eradication because of their inadequate resources. \\liicli \\ould nut bu i. Kept.o\er\\ helming evidence presented by majors ami from many others. lire. and other factors contributing to good neigliborlioods. and crime.\ be effecti\ ul. H. While your committee bclicM's thai nil cities should utilize effectively police powers to mitigate some of the worst effects of slums and to help prevent 'their spread. police. nmluliicli in no\\u\ eliminates lliee\entiml need for tin. a greatly desired.s of clearing and preparing them for reuse. by industry. h a v e attempted to alleviate these conditions through the exercise of local pulice power in requiring the compulsory repair or closing of substandard housing. 000.ud from sale or lease of the land fur appropriate mle\ clopmont. it is cominced. as to the limitations of law enforcement as a solution to the slum problem. They live there primarily because only in the slums can they find an}' sort of housing accommodations at .:os»l. density.

The role of the Federal Government would be restricted to the making of loans and capital grants. acquire the project sites.01)11.000 becoming available on July 1.000 would become available over a 5-year period. prepare the redevelopment plans. The appropriate local public body in each city would select the project areas.000). Federal loans would be utilized. with very few ahd'Jipited exceptions. These arc the costs which..000. It is in the national interest that iip further delays in starting an effective attack on the slum problem should be countenanced. at.000.upon a determination by the President. ' and any of the. and any of the authorized increases therein becoming available in any yoir. will.. K.000 on July 1 of each of the three succeeding years. 4009 would authorize the Housing and Home Finance Administrator to assist L"-alities in carrying out slum-clearance projects. and preparing the sites for appropriate reuse.000. 4009 S. .000 on July 1.000. $25.crest. 1949.000. by not to exceed additional amounts aggregating' not more than $250.000.000.000). to bo increased (subject to the total lonn' authorization of $1.14 . The grants would help the local communities absorb the losses which represent the difference between the costs>of the slum-clearance operation anil the reuse value for whHi the land is sold or leased for redevelopment. that such action is in (he •public ir(.000. furnishing technical assistance. 1950.000.000. and further amounts of §250. authorized iiiuruasi's therein becoming uailablo in any year to bo incruasud (subject to the total oapital-gra. Slum clearance is a time-consuming process and any further postponement of the already long-delayed start in meeting this problem would merely set back for a further indefinite period any hope for progress toward its ultimate solution. and prepare them for disposition f^r redevelopment. together with the large capital.000 and would become available in f i \ o annual installments of $100. The bill penults the initial loan authorization. The loan authorization aggregating $1. R. and assuring compliance with statutory requirements. by not to exceed additional amounts aggregating not more than 8100.000 beginning July 1. FEDERAL ASSISTANCE ATJIIORIZED IN H.000 upon a detennina- .to finance the capital cost of acquiring.000 . from moving ahead with this task within their own limited rcscfurccs. $225. have prevented the loca) communities.national economy. at any time or times. " The overwhelming evidence presented to this and other congressional committees is that only through such Federal assistance can substantial progress be made in dealing with this problem. after receiving ad\ice from the Council of Economic Advisers as tp the general effect of such increase upon the conditions in the building industry and upon llic.. The capital-grant authorization totals $500. any time or times.t authorization of $500. HOUSING ACT OF 1949' These arc the costs which prevent slum clearance from being a profitable venture for private enterprise. The bill permits the initial -capital-grant authorization. outlays required. 1949.000. The objective of the programs contained in title I of this bill is to provide the necessary financial assistance that will enable local communities to Jhake an effective start toward eradicating the slums.. clearing.

for jndiistry_ojL|oy jjublic j)un)oacs7\v ill necessitate a ihsporsion or a consulcrablo• portiort oftKo'families now living in such areas. none' of the fuiu!s would be available to finance the construction of buildings on the cleared sites (except that temporary lou. 4009. The clearance of land in residential slums in central city areas and its redevelopment in accord with a plan for tho:most appropriate use of the land.nomic Advisers as to the general effect of such increase \ipon the conditions in the building industry and upon the national economy. the Federal grants. the temporary loans would be repaid'out of the proceeds of sale of the land (or. Your committee is convinced • * 417' . portions of the. Federal assistance would be available only to finance the costs of acquiring and clearing slum sites and preparing them for redevelopment. your committee is cpnvin -od that the 2-to-l sharing formula is necessary if the purposes of the program are to be achieved. that such action is in the public interest.after receiving advice from the Council of Eco. from the proceeds of longterm-loans). . The net loss involved in this slumrclearance operation would be shared by the Federal Government and the local community on a 2-to-l basis. make them susceptible to deterioration into slums again in the future. as well as the findings of previous congressional investigations of this matter. The balance of the losses must be borne by the local public agencies eithcrjn^ cash or through contributions other than cash. therefore. such as for liouajng tif less density. Thus. and the clearance and preparation of the sites for reuse. I^png^term Federal loaiis would be available to refinance. If it is inadequate.land acquisition. would severely restrict or defeat the basic objective of this program. on the basis 6f thcj^usc value. the Federal grants may not exceed two-thirds of the losses on all clearance projects undertaken in anj one locality. sites which are leased and wduld~T>e sccufcTT by the rentals from the leased land.. HOW THE FEDERAL ASSISTANCE WOULD BE USED UndeV H. R. On disposition of the land for redevelopment. by forcing the overbuilding of the redeveloped areas. It is obvious that the aid extended must be sufficient if the program is not to bo self-defeating. States Conference of Mayors an. it would either prevent the initiation of local slumclearance projects or. in the case of lease. may be used to finance certain public facilities foe open sites as indicated below). The evidence presented to your committee on behalf of the United. tojupport the JicwTiscs^of the IanaT tne^ojisjruction or relocationjof-strccts and utiliticsjbrjhc use inunicipaTTabpx-anjjffiuipmcnt for the cleatunce operation^ Cvidence before your conYnutlee indicatesTIiaTa substantial writeoff of excessive costs will be necessary if redevelopment of the slum areas is to be in accordance with the appropriate uses. such as the7" provision bf parks or schools necessary. and the local cash contributions. In the light of the best informed judgment as to the ability of the cities to contribute to slum-clearance programs. Temporary FederuHonns would be available to finance the costs of planning of local projects.HOUSING ACT OF 1949 tiqn by the President. afford convincing evidence that any change in this sharing formula to require larger contributions by the cities.d by other city officials.

the demolition of resident inj. As already noted. structures in slum-clearance projects is prohibited prior to July 1. 4009 would assure the adhcience to Ihe primary Jious•ing purpose in two principal-respects. first preference for occupancy of low-rent public. in the . your committee wishes to• emphasize that the primary justification fqi Federal assistance for this purpose is the improvement of housing conditions for urban families. therefore. . This program must be conducted in such a manner that. ThiiM. the extension of Federal financial aid to a local public agency for slum clearance is prohibited unless a feasible method is provided foi tlia temporary relocation of families displaced from project areas and unless permanent housing has-been or is being provided for them either. but in the case of open land no-capital grants may be made.ould result. It is important to point out. set in the context of a bill which has . JR. 418. coiisiot of decent. flic restrictions on the nature of the project* fur which Federal assist . .restricted to those areas which-are. In the first place. however. The slum-clearance program. rather than detract frjin. l\\c bill authorizes temporary loans als'o to finance schools or otJjcr public facilities necessary to serve or support the new uses of open or predominantly open land. This applies with particular force to families of minority races for whom the problems of relocation arc particularly difficult. Such loans arc to be repaid with interest as soon as the development of die area and its tax base permits the appropriate local body to refinance the loan from the proceeds of a regular bond issue.portion of the central city population.nice may-he provided. the bill clearly recognizes that the clearance of slums and the provision of decent housing for families who live in them arc insopaiable. There are. this essential objective. both loans and capital grants are authorized. First. safe.sanitary dwellings which are located in areas not generally loss desirable in regard to public and commercial facilities and which arc available at rents nnd pric.es within the financial means of displaced families.it will contribute to. and . if the local governing body determines that undue hardship.project areas or elsewhere. eligible. three specific safeguards. Jl. in addition.16 HOUSING ACT OF 1949 thnt Federal assistance for the acquisition and preparation of open and predominantly open lund to bo developed for predominantly •residential use is essential so that adequate provision ran be made for the necessary dispersion of sona. i-. The permanent housing Jinist. for admission. SLUM CLEAHAXCE AND HOUSING While the slum-clearance program pjovided in this title is separate from those provisions . Second. and in airy-event within 10 years. y. In the case of predominantlyopen land. housing projects assisted under this bill must be extended to families displaced' from slum-clearance projects if they are otherwise. Any slum clearance which fails to assure adequate housing for the families who presently live in shuns would bo merely forcing them into worse conditions. Federal aid to localities for slum clearance is •.predominantly residential or whii.dealing directly with housing.ii \\ill be redovcl -pod for predominantly residential use. The second basic principle relating the slum-clearance program to tluunajor purposes of this legislation is through.as one qf its major purposes the provision of adequate housing for such families.1051.

It is also "true that in residential slum-clearance projects. parks.m uses in violation of. and provision?. your committee fully expects that the administering agency will* require that there be used every practicable device to assure that the prices paid by the local public agency for the land in theproject area will be held at the absolute minimum. VI.rather assist t\\c broad-scale redevelopment of oiir in ban areas.clear. Accordingly. ItESrO.cd.' HOUSING ACT OF 1949 17 that this requirement will not interfere with but will.. safety.. conditions.c. 4009 inquires the Administrator in t \lcnding financial assistance to give consideration to the extent to which localitiu1. and of public housing where the localities determine that the sites are best suited for that use.power to the fullest possible extent in such area so that prices paid for the land ^yill not reflect any excels values which may arise fro. in extending financial assistance under this iiljc.es are not paid for the areas. safe. in addition to providing the limitations already described.have encouraged housing coat reductions through the adoption. the Administrator shall give consideration to local codes and.iC'bill also requires that.y and sanitation.to. as will prevent the payment of such excessive prices. Your committee believes that local slum-clearance programs should be locally executed in such manner as to promote the achieycmi-nl of the objectives stated elsewhere in-this bill. The bill therefore authorizes the Administrator to include in any contracts or instruments for financial aid such covenants.NSiRILITIES As indicated above. Thus. LOCAL.local regulations as to health. Your committee feels that maximum benefits from the Federal aids provided for slum clearance can be obtained only if excessive P4ic. H.-b. although there will necessarily be some public participation through the provision of schools. mintmum standards of health. and-other mallei's relating to the prevention of j. the administering agency should require that the local government exercise its police. The bill requires 'Mt the redevelopment plans for the locality afford maximum opportunity for private enterprise. For example.hc recurrence or spread of slums and blighted areas.assure thn. improvement. once an area has been selected locally. your committee calls attention to the fact that the carrying-out of a slum-clearance.Slums and blighted areas as they exist today are predominantly residential. Much of the construct ion required in connection with-the development orj-edevclopr inent of these areas would be under private au&pices. 4009 fully recognizes the importance of local initiative and local responsibility. •egulations \\ ith respect to land use.. and other public facilities. and modernization and other local codes. inland holding: Further. and redevelopment project will naturally be a relatively long-term job. and sanitation. it will normally be necessaiy to include some adjacent nonresidential blighted areas in order to. LOW-RENT PUBLIC HOUSING TitleII of the bill would extend the low-rent public housing program which was originially established-by the United States Housing Act of 419 . Ti. . ami requires that the provisions of the title be administered so-as not to permit speculation. II. H.proper kind of redevelopment.. R.

but tlie amounts actually paid . Local authorities are cieated pursuant to State lawj and their inembers are usually appointed by ihe mayors of the respective localities.necessity if-wo arc to move toward the goal of a decent home and suitable living environment for every American 420 . -" Two types of -Federal financial assistance arc provided under the United Slates Housing Act—loans and annual contributions. The public housing program in Uie various localities is directly administered by local housing authoi itics which develop. • . without forcing them to deplete their meager budgets for food. subject to the making of small payments in lieu of taxes.1$ HOUSING ACT 6" 1949 1937. On the basis of .the low-rent housing program ns provided in title II of H. This program has received the almost unanimous support of public officials and public-minded citizens in the municipalities where it has operated. The role of the Federal Government is appropriately restricted to the provision of financial assistance to the local authorities. the furnishing of technical aid and advice. "^^ . own. The basic responsibility for the prevision of low-rent housing is tlius-rescrvcd to the various localities. not more than two-thirds or three-quarters of the maximum amount will be required.The Federal loaning power will be used primarily in connection with the temporafy financing of piojccts during the construction period. and other necessities. and opei ate the low-rent projects. The annual contributions paid by the Federal Government. 4009 is a basic.fixed in relation to the cost of the projects. . II. NKRD FOR PUBUC HOUSING ^•^T Tho extension of . .stcm have averaged well over half the amount of tlie Federal contributions. "~ Tho.050.amounts .capital requirements by the sale of bonds to private investors. but under the proposed finarcing provisions of this bill it is expected tliat local authorities will bo able to meet tlie great bulk of thftir. Loans may be made to assist local autlioiities iiv-thc capital financing of their projects. S - HOW THE PUBLIC HOUSING PROGRAM OPERATES . . it is expected ihat. serve to make-up the difference between the rents which families of low income can afford.sy. together with the contributions made by local governments. ^^. has taken families from the slums and has provided I hem with simple but adequate homes.each 3 cur are restricted to the amounts actually yoeded in such year.to pay aad the annual operating costs and dcW service of the projects. IJL.pnst experience. -^ The local go\ernments contribute to the reduction of rents through the complete exemption of the low-rent projects from all real and persoiml properly taxation. The Federal contributions nrcjiinitcd to maximuiii. Local contributions for the present projects under a sinulaf. That program would be augmented by the jprovision of a. clothing. ^over a period of years.000 homes for both city and iural nohfarm families who cannot afford^ to pay for adequate shelter-neither in new or existing private housing. It has provided these homes at rents wiluiu the means of low-income families. and assuring compliance 'yith statutory requirements.i • additional 1.present low-rent housing program hns \vorked wolMn practice.

. R.. Your committee is equally convinced that the public interest amply justifies the provision of such subsidies. This autho^ization will become available in. 1949.G ACT OF 1949. and with proper budgeting their incomes are usually sufficient to'supply all the basic needs of their families except adequate shelter. the average rent which the urban families hi this lowest 30 percent income group can afford to pay would be approximately $27 pelmonth. -1009 The bill authorizes the construction of not to exceed 1. . your committee has concluded that the number of dwellings authorized over the 7-year period is essential in view of the acute and urgent need for housing by underprivileged slum-dwellers. therefore. not exceed one-fifth of income. Adequate shelter is not available to these families becausp rents or prices charged for such shelter would represent an . both in its extent and imturc. a considerable iM. The breadwiiihers of most. Each year thereafter this authorization is increased by 150.families whose incomes arc so low that they must continue to live in slums or other inadequate housing unless we. the 1'resident is authorized (after receiving the advice of the Council of Economic Advisers as to the effect of such action on conditions in the building industry and on the national economy) to increase or to decrease any of such authorizations at 421 .HOUSIN.1500. while 30. to changing economic 'conditions. PROGRAM AUTIIOUI55KD U. The bill authorizes the commencement of constriction on the first installment of 150.i|p cnicrprise even with further possible financial aids.-rccntagc.050.OOQ new low-rent dwellings in urban and rural nonfarm areas. As the Administrator of the Housing and Home Finance Agency stated in his testimony before your committee: We cannot ignore the fact that there remains .unduly aiid prohibitively high proportion of their limited income. In order that the progress of the new program may be adjusted.7 percent of utban-families had money incomes. including heat and nil other utilities.N'pKR II. The problem.000 units is authorized in 7 stages. Your committee is convinced that this can be done only with the assistance of substantial public subsidies. of these families are usually gainfully employed.3 percent had incomes of less than-$2. take action to prevent it.of our. 1& family.000 units.000 units until the full program of 1. 7 ni^iual installments of 150.050. if possible. evident that a large additional supply of adequate housing must be provided at rents which will average somewhat under S30 per month) including all utilities. it is.000 units after July 1. the rcpprts of the Bureau of the Census show that 19. and will undoubtedly rc-iain for years to coino.today. On the -generally accepted-rule that the cost of housing should. Despiti-high postwar 1 -vels of employment and income. After weighing all the-evidence presented to it.rge for decent existing housing.000.in 1047 of less than $2. is not the sort which can be solved in the foreseeable futuii by pri\. The rents which they can pay represent an even smaller portion of what private enterprise wo'uld have to charge on the basis of a sound economic return if it were to supply new housing for these families from the slums. if necessary. both Federal and local. If the families now living in the slums are to be provided with decent homes. The testimony presented to your committee makes it abundantly clear (hat the great majority of the families living in the slums dp so only because they cannot afford to pay \\hat private enterprise must ch.

In this way.000. 4009 therefore includes several amendments which your committee believes to be desirable improvements and which will make the United Slates Housing Act a more flexible and useful device for providing adequate housing for low-income families. if unused in suchycar.000 units at one time and increased by a further 50. suilnblo'dwellings will become available to families who are to be displaced and \\ill aid slum-clearance projects in complying with the requirement in this connection which is included Jh the slum-clearance title. be carried over for subsequent . This borrowing power \\ill be used primarily to provide security for short-term loans made by the local authorities from private investors during the construction period. Since a positive program of slum clearance is 422 .000 and a final 875.000 units. This liinit will be increased by three annual increments of 880. on the average. The total maximum contributions thus authorized would amount to 8400.000. Thus. 1949. the authorization for.000. The Public. It is therefore anticipated that the funds actually borrowed from the Treasury will be very substantially less than the authorized amount.000. Lowinconic families who are. the President can adjust -any of the authorizations between a top limit of 250. K. under the provisions of the bill. of course.000 after July 1. it could be increased by 50. to the total limitation of l. m.000 units at tiny time.000 per year.050.000 units and a bottom-limit of 50.000 per year. instead of the present authorization of $800. JI.000. no further increase could ever be made with respect thereto. such authorization woiikl. for example. The total amount which the PIIA may borrow from the Treasury and have outstanding at any time is increased to Sl. preference for admission to low-rcn\ housing.annual contributions can also be accelerated by the President.000 units. provided that the total authorization can never exceed 1.000. but. the contributions actually paid will not exceed more than -two-thirds or three-quarters of this amount. authorized in respect to the beginning of any fiscal year was not fully used in that year. Although contracts may be written up to this maximum amount. Subject to the total of 8400. AMENDMENTS KELATING TO SELECTION OF TENANTS Alhiost 12 years' experience in the operation of the United States Housing Act has disclosed the desirability of a number of amendments to that net.050. displaced or arc about to be displaced by public slum-clearance or redevelopment projects or by low-rent housing projects will l>e given a-firsf. In the event that the full number of starts. The first of these proposed amendments is designed to relate the public housing program to the new slum clearance program. accordingly.000. subject. It also places the borrowing power on a revolving-fund basis.00q units. Housing Administration is authorized under the pending bill to enter iiito annual contributions contracts for 885. after any authorization was increased by a total of 100.000 units at a subsequent time.000. it is expected that. Any of the authorizations could.000 dwellings.000 on July 1. be increased by 100. 1953. remain effective for subsequent use.500jObO.20 HOUSING ACT OF 1949 any time or times by amounts aggregating IT"' more than 100. of course.000. and authorizations which become available at the beginning of one fiscal 3'earniay.

. before any contract for annual contributions can be made. Further. Your committee is in full accord that provision for this unfortunate class should be made. As among such displaced families. . The adaptation of dwelling units for such use would only require wider doors. veterans and others who are condemned to living their life in wheel chairs. The authorities must also set maximum limits for continued pepipahoy.thc proposed projects and the lowest rents nt-which private enterprise. the local housing authority must show a gap of at least 20 percent has been left between the upper rental limits for admission lo. and ramps in place of steps. the present requirements of the United States Housing Actas to the elimination of substandard dwellings in connection with lowfrcnt housing projects would be repealed. veterans with service-connected dis^ abilities would have first preference. 500. safe. from the requirement that they must have been living in substandard housiiig at the time of their admission. The pending bill. which will be reviewed 'briefly later in this report. is pro\iding (through new construction and available existing structures) a . Sl-l 1 . vct> crans and servicemen would have similar preferences. Veterans are also exempt for a 5-ycar period. Charges have been made from time to time by the opponents of public low-rent housing that the program does not actually serve families oflow income. In this broad public-housing program die committee be^ lievcs that provision.HOUSING ACT OF 1949 21 provided in the bill.-will Lo required to set maximum income limits for the admission of tenants to low-rent housing. and believes that the 20-percent gap-provision represents a sound further reassurance. In view of the fact that it \\ould be inadvisable to require a statutory . a somewhat higher levol than those for admission. larger bathrooms. under the terms of the bill. For example. and sanitary housing toward meeting the need of an adequate volume thereof. Kept.should be made for these socialized cases. the bill requires that. subject only to the preference to families displaced by slum clearance. Your committee was very favorably impressed by the testimony of witnesses representing the Paralyzed American Veterans with respect to the need for providing dwelling units in low-rent public housing projects which are adaptable for paralyzed. due to the-varying need for such facilities) iii different localities.percentage of each project to be so reserved. however.your committee believes that the problem could best be handled by administrative determination in each project area after proper surveys and determination-of need therefor. unaided by public subsidy.and other veterans or servicemen would have a third preference. As among families who have not been displaced by alum clearance. the families of deceased veterans whose death was scrviccTCohnectcd would have second preference. Your committee i» convinced that private enterprise has never had anything to fear froin public housing. that competition does not and will not exist between public housing and private cnlcr? prise. Preference in occupancy of low rent public housing projects is provided for low-income Veterans of World War II for a 5-yoar period. local housing authorities. All maximum income limits will he subject to II. includes a number of requirements not how in tho act which \\ould gi\e positive assurance that the program will serve-only families of low income.substantial supply of decent. Your committee has found this charge to be unfounded hi terms of actual experience. generally at.

subject to the preferences to families displaced ^>y sl. they arc required to move from the . your committee desires. The present dollar cost. if their incomes exceed the maximum limits for continued occupancy. whether or m»t Federal contributions were required for those 2 years. AMENDMENTS RELATING TO CONTRUIUTIO. In the case of limits for admission. In the judgment of your committee. the bill specifically provides that hc. adopted in ] 937. HOUSING ACT OF 1949 approval . the bill authorizes payments in lieu of taxes not in excess of 10 percent of shelter rents.project. and in . the bill simply requires that projects be exempt from real and personal property taxes. this represents an amount which is both fair to the cities and at the same time assures an adequate local contribution through tax exemption. and. tax remissions. in the initial selection of tenants for a project. In computing family income.t family income cannot exceed five-times the gross rent. With respect to projects assisted under this title. Moreover. a deduction of $100 is allowed for each minor dependent. arc obviously unrealistic in view of present building costs.to call particular attention to several other amendments to the United States Housing Act which will make substantial improvements in the operation of the public low-rent housing program.projects requiring Federal contributions in those fiscal years. Requirements governing local bntributioris have been perfected to take advantage of actual experience. The bill also repeal" the prohibition against any payments in lieu of tax$s (other than amounts originally contracted for) which was included in the Government Corporations Appropriations Acts-for-194S and 1949 in respect to . local housing authorities will be prohibited from discriminating against families whose incomes arc derived in whole or in part from public assistance but who are otherwise eligible for admission. the bill requires local ^authorities to give preference among eligible families to those with the most unjent housing needs. lii view of this fact.order to put projects in nil localities on nil equal basis.NS AND COSTS In addition to the foregoing amendments. This is the amount formerly authorised by the Public Housing Administration. or tax exemptions. mid payments in lien of taxes equal to 5 percent of shelter rents arc authorized to be made retroactively ns to these 2 years for all projects.by the Public Housing Administration. A very necessary amendment in the bill revises the provisions relating to the capital costs of low-rent projects.750 per room.and equipment of dwelling-facilities to $1. Accordingly. In practice they have always been made through the exemption of the low-rent projects from real and personal property taxes granted-pursuant to State legislation.22 .. which leave no doubt whatsoever that only low-income families will be eligible for public housing. In selecting tenants. . the bill raises the limitation on the cost of constniction. The incomes of all tenant families must be periodically fccxnmmcd. including heat and nil other utilities. limits. The present act calls for local contributions equal to 20 percent of the Federal contributions and authorizes the local contributions in the form of cosh.im clearance and to veterans.

HOUSING ACT OF 1949

.

23

It also authorizes ajv increase in this cost limitation by not more than $750 per room in areas wl ere it would not be feasible without such an increase to construct public housing without sacrifice of sound standards of construction, design, and liability; and where there is an acute need for such housing. In-reviewing the question of necessary increases in cost liniiis, your committee was presented with information on this subject by the Public Housing Administration., A number of local housing authorities requested their contractors to rcestimate existing project^ on the basis of the cost levels prevailing at the end of 1948. This study showed the following expected average costs per room of dwelling construction and equipment:
Cost per room: Sl,OOOtoSl,249.._. S1.250 to §1,499.. $1,500 to S1J49 SI,750 to SI,900.^ . S2.000 to 82,249..

..„_.......__ -— ,

Numlm o] projtett 8 . ^ 7 S 7 .5

These figures indicate tbe wide diversity in costs which arc to be expected in different parts of the country. The projects represented in these estimates range- from; very simple projects in small communities to large multifamily projects which are necessary in New York and other metropolitan centers. . These figures indicate that it will be necessary to go over the proposed normal limit of SI ,750 per room in only about one-third of the cases, and even then it will probably not be necessary to. make full use of the additional authorized amount. The authorization to exceed the normal limit by $750.per room isj however, in the opinion of your committee, necessary unless we nre to risk dcprivingjiigh-cost metropolitan areas, such as New York, Xcwark, Chicago, Detroit, Philadelphia, San Francisco, and Boston, of their rightful chance to participate in the program. Your committee brio noted the contentions soim-timcs advanced that the costs of public housing authorized in t1;is title should be reduced to thciowcst levels at \\ Inch private housing is being produced. Your committee docs not believe that these contentions arc realistic or well-fo'intLcd. tn the first, place, the fact that some private housing is being produced in some sections of the country at prices of $6,000 or $7,000 does not establish that oven in (hose sections housing of this type would bo suitable for the intensive, long-term use required in public housing or for the wide range of family sizes which clearly should bo accommodated in publicly assisted' projects. In the second place, these arguments ignore the fact that the publichousing program is a national program which must be workable in all sections of the country where there is a demonstrable need for such housing. Your committee calls attention to the fact that isolated examples of low costs cannot be accepted as a valid basis for a maximum cost limitation to cover all conditions every where-in a country as vast and as varied as ours. Tt is well known (hat building conditions and costs vary greatly in tliis country. In some areas, climatic conditions permit lighter construction than in other areas. In some sections, the entire level of prices and incomes is lower than in others. It follows that while the costs of both pri\utc ami-public construction will be relatively low in some localities, any over-nil limitation that

425

24

HOUSING ACT OF 1049

would have the practical effect of barring construction except iii those areas would be manifestly unjust and unreasonable. The bill also reduces the maximum period for loans and annual contributions from 60 to 40 years (except that GO-year loans may be made on projects not assisted bjr Federal annual contributions) and the maximum contribution rate is correspondingly increased. The shorter amortization period is expected to result in lower interest rates on local housing-authpritj bonds. The saving in total interest paid, as a. result both of such lower rates and the shorter repaynnnt period, will more than compi-n^itc for the increased contribution rate.
RURAL NOXFAKM AREAS

TL. housing needs of low-income fauilies who live in rural nonfarm areas are as serious-as those of low-income families-in urban areas. Two provisions Inni ..therefore,been written mlu'iheT>ijl with specific reference to this problem. First, yor.r committee has provided for a specific 3-ycar reservation of 10 percent of the authorizations for annual contributions contracts for rural nonfarm housing. Under this proviso, j-our committee expccts-the Public Housing Administration to undertake a';program of assistance to local housing authorities in the provision of low-rent housing in rural nonfarm areas. Secondly, the bill pro\ ides for the transfer of farm labor camps administered by the {secretary of Agriculture to the Public Housing Administration for use as low-rent ihousiiig, and authorizes the reservation of all or a part of the accommodations In such camps, for migratory agri^ultural workers.and their families. The bill requires that the rents for such accommodations as are reserved for migrating agricultural workers shiill be amounts which they cam afford to pay, and permits funds of the agency to be used to make up any deficits, and authorizes appropriations to reimburse agcnc}' funds for expenditures for such purposes.
RENTS ACHIEVED AND FAMILIES SKUVED V N D E U EXISTING LOW-KENT PUIiMC HOUSING PROGRAM

In recommending the foregoing amendments to the United Stales Housing Act of 10:J7, and in proposing an expanded program under that aa, your commiliro is joining the many previous congressional committees which'hn\e, over the past several yem.-., carefully considered tbii problem of rohotising slum duellers, and have repeatedly reaffirmed the conclusion that 'a public low-rent housing program, aided by Federal and local governments, is the best solution to the problem. In support of tl;'* conclusion, yo ir cc mmittee \\ islics to call particular attention to the low rents which it Ju»; been possible to achieve under the present piogram, and to the low incomes of tho families living in the projects. Rents actually charged in the original low-rent projects, ns shown by (lie Annual Keporlof the Public Housing Administration for 1047, n\crngcd only $27.24 per month, including substantially all utilities, such as heat, electricity, and gas. This wns approximately SI.25 per month less than the a\urnge rent charged in substandard dwelling* in urban areas, and indicates that low-rent housing was being made

426

HOUSING ACT OF

25

available at about the same prices which low-income families wero accustomed to pay for slum housing. The actual annual incomes of families in the original low-rent housing projects for the first 6 months of 11948 are shown in the following table: Annual income* of families in low-rent Tiouting projcctt, percent distribution* and mediant: (Public Law 412 and PWA project*, first 6 months of 1946)
Rccxamlmtlon for continued occupancy All tenants Eligible to •Ineligible ' rcexaminctl continue to continue

_

Annual income

New admissions

Pctctnt distribution: UndwJMO.—. &00to$!>99 Sl.OOOtoSl.-109 Sl/OOtoS1.9»... S2.UOO to $2.499 -.SiJOO to $2.999 $3400 to $3, 199. SWM to S3.9W' •$1,000 and over Total ; . . . . . . . !

_ — — ....

Pmtnt 0.0 11.5 39.73SC 8.2 I.I

fnant 1.3

10.4

1'aanl 1.3
21.0 21. G H.I 5.3 .3 74.0

•J'trurtt


100.0

31:0 22.6 18L6 11.9 6.0 3.4 4.8

10:4

0.6 5.7 3.4 4.3

1.0 ^ 5

ioao
*I,SS4

26.0
$3,00

S1.4S1

$1,504

The income of the families admitted to the projects during the first half of 1948 are shown in the first column of this table. Over 52 percent of the families admitted had incomes of less than $1,500, and only 9.3 percent hnd incomes in evcess of $2,000. The incomes of the families admitted averaged $1,481. The incomes of all the families living in the projects in the firs! half of 1948 .(«? shown by rccxaminations of income) averaged $1,884' per year. This average covers a substantial number _of ^ineligible families theiTnyjng_in tho_nfoiccts.jyJiom"it liad been impossible .to remoyc bcgausfijoLa.cut o hpjising sliQEtagcs^and because of a coneviction wliipli Tins sinca boon repealed . All ineligible tenants arc now hcing rcqiiircd to mpjcjftojn Jo_w-ront housing proiccts under a plan for gradual removal, pursuant to which thoyjsvill all IiayeTocci^cdjnoTicci,to.Yaca.tp by^the-cnd 6f_1949,~ " lirbnlcr to indica'tj^liow falTilbwn in the income scale public housing is actually reaching^ it is interesting to compare the average incomes of tenants with the incomes of all urban families. The Bureau of the Census recently reported that in 1947 a figure of $2,630 per year marked the top of the lowest income third of city families, while the average income of such families in the lowest third was $1,789. The average, income of $1,481 of families admitted to low-rent projects at about the same time was 17 percent below the average income of all families in the lowest income third, while the income of eligible families living in the projects averaged 1 1 percent below the samo figure. In short, it is clearly apparent that the families admitted to, and the families living in, public housing not only como from tho lowest income third, but from tho lower segments of that income group. Based on evidence such as tho foregoing, your committee is convinced that the present low-rent program has been a successful pro-

427

26

HQtJSnJG ACT OF 1949

gram, that it is meeting the housing heeds of'low-income families on an economical basis, and that it should be expanded in accordance with the provisions of the bill favorably reported by your committee. Vn. HOUSING RESEARCH Research, which has made our Nation's Competence in ocicntific development and industrial skills a subject of world-wide respect, should be more fully used on a larger scale to obtain more and bettor housing for all American, families. In the judgment of your committee, this will require the authorization of a comprehensive Federal research program to the end that the already extensive facilities of our educational institutions, industry, foundations, private laboratories, and. of government may be better coordinated and focused on the achievement of the housing objectives stated elsewhere in this bill. It is this kind of a Federal research program that is contemplated by this committee in title III of this bill. The need for such a program has been emphasized repeatedly over the long period during which this legislation has beep under consideration, :ahd was a major recommendation of the Joint Committee on Housing. It has been supported during our recent hearings by witHQSSCS broadly representative of the American people. Among these witnesses were several industry spokesmen who recognized the value qf_ Government research to supplement the results of industry's own activities. Perhaps the most persuasive argument for the type of research program authorized by the bill is the simple fact that all who have an interest in and responsibility for housing, need and will benefit from the results of such research.* The homebuildcr who faces,the task of constructing more and better homes at lower prices to maintain his market will make better headway if he is in a position to apply the results of research into basic cost factors. Labor employed in homo construction will he helped toward the goal of more stable employment at good wages. Better information resulting from research will help the lending institutions in the wise .selection of investments for trustee funds, and it will help the producers and distributors of building materials and equipment who have been severely handicapped by the traditionnlboom-and-bust behavior of construction activity in the ast. Governments—local, State, and Federal—need more sound ictual information on which to evaluate the actions they should take in carrying out their respective responsibilities in housing. Last year, Congress authorized a limited program of housing research. Under the terms of the Housing Act of 1948, the Housing arid Home Finance Agency has undertaken research in the .improvement and standardization of local building codes and in the standard* zation of the dimensions of liomcbuiKling materials and equipment. This program has permitted a start in long-nejdcd research in two admittedly serious problem areas. While valuable anu tangible results may be expected from the authorization for technical research in these two areas, your committee is convinced that a broader and more comprehensive research authority is needed. The answer to the housing problem will not come from limited engineering research alone. Important as it is to seek engineering and technological progress, we cannot overlook the fact that many of our housing difficulties are

E

428

sanitary codes.HOUSING ACT OF 1949 27 economic in origin. therefore. In addition. It is my belief that the.building. in local building regulations. The committee . In recommending this title. Tims. recognizes the basic local responsibility for housing. tin. your committee is in -agreement with the testimony of the Administrator of the Housing and Home Finance Agency when he-stated: The housing problem has so many facets that it would be unrealistic to place all our hopes oh any one field of action. . the Housing Administrator is authorized to underhike studies in cooperation with industry and labor. R. prevent the improvement of our housing standards. and investigations which bear on one or another phase of housing. problems whose solution holds the best immediate promise of wide application by industry and local governments. like other titles of the bill. In this connection. aspect of housing. labor..Construction Division. the Bureau of the Census and the National Bureau of Standards of the Department of Commerce. At the same time the bilf recognizes that other Government agencies arc now engaged in studies. This is extremely important. The Public Health Service of the Federal Security Agency. whether it be engineering. either directly or incidentally. 4009 will be directed. your committee wishes to emphasize certain underlying considerations which will guide the administration of this legislation. or cast doubt on the value of housing as an investment. and with educational and other nonprofit organizations. etc. Laboratory of the Department of Agriculture. add to costs. It will. . Federal Government should therefore broaden its research and. and to promote widespread acceptance and use of the practical results of such research. be necessary for the Housing Administrator to give special attention to the task of disseminating the research findings. will bo pointed 429 . The research title clearly indicates that the Housing and Home Finance Administrator is to undertake a rigorous and realistic program of research into all of the recognized obstacles to the attainment of the housing objective set forth in the bill.assume the leadership in analyzing all of the factors that in any way impede housing production. it is expected that responsible leadership will be exercised by the Housing and Home Finance Administrator in formulating and carrying out a program of comprehensive housing research. the Forest Products.not to work in hom3. management. to those. Housing research must lx> broad enough to disclose. experiments. for the benefits sought to be achieved by this program cannot be fully realized unless the practical results of technical housing research arc made available in usable form and are generally accepted and used.also expects that the research conducted under Ihe provisions of H.the possibility of constructive action in ever}'. The formula of a progressively higher volume and lower unit costs is too successful in too many . The bill calls upon the Housing Administrator to consult with und make reconimcndations to such other departments of Government concerning action which may be necessary to overcome existing gaps and deficiencies in the field of research.other American industries. local administration or Federal. financing. with agencies of State and local government. In the first place. Complementary means must be found to rjempve these obstacles if full use is to bo made of the results of technical research. In this connection your committee calls specific attention to the fact that the research title of the bill. and the Bureau of Labor Statistics of the Department of Labor are examples. research. insofar as possible.

and the results of major research activities will be made vailable for practical local application. In many cases. In discharging this rcsponsibnit3' the Department engages in direct research activities. or that the results were being widcl3' disseminated. model building regulations. it must be-recognizcd that most of the housing in this country is built b3' the relatively small-scale builder.. Yet 3'our committee believes that every possible encouragement should be gi\<-. The foregoing approach does not represent a novel departure for governmental research activities.. In 1938 the Bureau of Labor Statistics reported that SO percent of our home building was carried on by builders who constructed between 1 and 5 Jiouscs in a year. other siich aids to the builder and the local officials with whom IK must work. and many.production. the obstacles of over-elaborate building codes. or to o\ ciconic single-handedly. In carrying out a program of housing research. Xo particular segment of the industry is large enough or can. Communities will be assisted and encouraged: to develop their own market surveys. adequate guides for layout and planning. ami become better able to deal with technical. Your committee docs jiot feel that the complex nature of the housing industry permits this kind of a result. it will be necessary to develop entirely hew dc \iccs. to expand their operations.-nicnt of more economic! and effluent building organizations. builder. utilizing the resources of other Governmental agencies where feasible. cconon ic.indication that these activities were encompassing all of these problems. safety. any research . For a great many years. be concerned-ill con&idciablc degree \\ilh the future develop. and must. the Department of Agriculture has been responsible for a broad and continuing program of agricultural research. and sr itatjon codes. all available investigative devices must be put to work to identify the precise-nature of the productive process carried on b3' housing enterprises. It is obvious that many lines of inquiry must be pursued simultaneously and that many dilfcren. And it must be directly concerned with gelling the results of that research into the hands of the Guilders for practical application in actual operations. particularly in the large metropolitan areas.have a broad chough economic stake to do the kind of a job ilia t needs to bo done. and works cooperatively with universities and other public and private research groups.28 HOUSING ACT OF 1949 toward the development of better standards and model forms for the guidance of appropriate local officials.n to these small builders. t3rpes of talent must-l> n employed. The evidence as to the research now being conducted in-the housing industry presented to your committee did not disclose 0113. all available e\idcucc indicates that tins large majority of our building is still done by the relatively small-scale.. and employ them in developing belter methods of financing home . and adniinistrati\c research can be \ cry useful to these OA . The typical small builder today cannot afford to engage in research himself. In this connection.program. who comprise a substantial part of the Nation's small business enterprises. finiincial. While the number of large-scale builders ^ns uivdoublcdly increased since (hat time. for example. to be truly effective. and management problems. Therefore. The results of technical. health. rnu&t take into account the production problems of both large -and small builders.

applied by c. has lagged behind other American industries in this respect. labor. which is usually associated with cities. It is a program which.m. as well as industry.improved financial position for fanning as a whole. The farm home must be considered as ii. Overcrow ding. FAHM HOUSING Your committee regards the farm housing title of the bill-as essential ui dealing with the phases of the . despite this relatively .isno. 10 percent of our farm homing was in-need of major repairs.500. impro\e (lie sol.as such. One reason that form housing problems. Tmpro.national housing problem covered in this bill. Your committee is firmly convinced that the n-scarch program contemplated under title IIT of the bill is highly desirable to facilitate housing progress.HOUSING ACT OP 1949 29 ..nciit. Your commit tee is a\\ are tlm. secure rural economy.i mere supplement to lowii-and-cii-y-housing programs. that the quality of farm housing as a whole is considerably below the standards of nonfarm housing.s could result in substantial sayings to Amcrir can home buyers if .less than §1.level of agricultural inuoiuc in the past several years lin* raised the standard of living on the farm..\ oniuiit-of farm housing standards is essential to a sound and .' . and the Federal Government. have received less attention thus far than those of urban areas is the peculiar-mid specialized nature of farm housing. The result has-been. the best promise of attaining real and lasting cost reductions through technological progress in an industry which. si-i—•* '". It has been treated as a byproduct of efTon* to increase production. Vili. and that a considerable amount of home improvement has resulted. It seems evident that most of these farm families would not be nbhr to improve their housing renditions without financial assistance along the lines provided for in tin's title of the bill. Only 3 out of 5 had electric lights.. also. farm housing has been largely ignored both in our housing and our agricultural programs. Two-thirds of our farm dwellings lacked running water.000 farm families produced farm products yajuiul at. or as . ns nil of the facts before your committee indicate. under Government leadership. as compared to 8 percent in the case of npnfhrm bousing. However.t tin. wovidc power. . local:governments. The research program offers. will bring real and lasting benefits to nil those interested in housing the consumer. In 1047. was proportionately twice-:«s prevalent in'farm housing as in nonfarm housing.cet it.000. During its hearings the committee received concrete evidence of how Government research in only two design problem. builders if they arc made available to them. It will result in a better understanding of complex market factbfvflrid will provide the factual data and statistics headed to evaluate the magnitude of the housing problem and the -relative success of efforts tt. The committee is informed that even in 1947 more than 2. Only 1 out of o farm dwelling units liiiil both private bulb and flush toilet compared to 73 percent of nnnfarm housing. and to attract and maintain on the land a product ive type of person. it is generally agreed. a large proportion of our farm families is still unnblc to obtain adequate housing. Heretofore.higher. considerable number of these builders throughout the "country.

loans of a similar type are provided.000. The purpose of this assistance is not to pro vide new or even adequate housing of a/permanent nature. A loan or combination loan and grant is 432 . Such loans may be secured by the far'^rs' equity in the farms. loans arc provided with terms up to 33 years ajid at not more than ^percent interest.»A1 improved.yeuily authorixatioirat the maximum of 85.progressively developed . In recognition of the particular oonsi-'orations which surround the farm housing problem. The amount of annual contributions provided would increase annually over 3 years to reach a.:. where it can be appropriately related U» olhrv farm services and •programs.assistance provided under the bill arc: 1. The three types of . this title of tbo bill provides for loans increasing in amount annually through. obtain from other sources the financing needed to provide adequate housing for themselves or their workers^ or for other farm-building improvements. light rook niul similar minimum repairs or improvements. and its administration has been placed under the Department of Agriculture. and one-half of the payment due on .000. it will provide positive experience through which this approach can be.in. by improved farm practices or by farm enlargement or development. with such contributions to be paid to any beneficiary over a period not to exceed JU years.and grants are limited in amount and arc to bo used for such purposes as proper sanitation. At the same tinu. and a limited amount in outright grants. For owners of self sustaining farms who arc unable to.principal in any one year. 2.and the rural community at least essential health protection and decent minimum shelter. The bill also provides authoiity for $]'2. For owners of farms not self-sustaining at the time but which offer reasonable prospects that they can be made self-sustaining. To provide the m-i. till' IV ha& been designed to meet the three major types of farm. a pure water supply. arc made a\ nihihlc for families residing on such farms.-»ary funds to carry out the above three types of assistance. Small loans. but to make it possible for families to make such -repairs and necessary improvements to their substandard housing iu> will furnish them. will make possible a significant start in the imr provcmcnt of farm housing. Such loans. .'particular to the farm rehabilitation programs of the Farmers Home Administration. housing situations.30 BOUSING ACT OF 1949 part of the income-producing property find plant-from which the farm family deiives its livelihood.giants for tho third -part of the program. Measures designed to serve nohfarm housing needs arc therefore not adaptable to meet the different basic conditions with respect to farm housing needs.000.000 in.000. while small in relation to the need. 3\ The l!)ird4ypo of assistance proposed relates to farms that offer no 'practical prospect of being made self-sustaining. These contributions would bo limited to a maximum of the annual interest. .the foi^lh year to an aggregate of S'JoO. The farm housing program provided for in the bill. The maximum grant for any one dwelling or building would be $500. Your omiiiiltee calls attention to the fact that this is tho section of the bill which offers a-litllo help to those who unfortunately are now living in slums on farms. screens.000. with annual contribution* available as a supplement \vhere needed for a period of not more than iO years.

:. classified as "imestmeiit securities. This -authority would be consistent w i t h tlio present pnnisions of la\\ which permit such banks to underwrite. made by subsection (a) of section 502. a local public agency or'-u public housing agency.•. short-term iiotes -when issued may. In view of the special security features which would thus attach to these notes. $2..reof. bucli. 433 . under the bill. This is done'by action 502 (b) of tlio bill.id section 5200 of the Kc\ ised Statutes which prescribes the same limit.d by section 5536 for tho purchase of inves .not have the qualifications of '"investment securities" but would rather ( artake of the. IX. and some of which arc technical. _ AMENDMENT OF NATIONAL BANKING ACT Under provisions contained in titles I and ILof tlie. Similar authority-is extended by this section \\ilh respect. and authorizes the Secretary of Agriculture to conduct research directed toward lowering the cost of farm housing and to assemble data and market information in this field. section 502 (a) would authorize national banks a" ' (to the extent permitted by State law) State member banks of the 1'cdcral itesenu System to purchase or underwrite such notes (having a niaturity of not more than IS months) without regard to present legal restrictions limiting transactions to a fixed percentage of the. securities.curtain long-term bonds of local pnblii housing agencies to which special security features would attach in accordance \\ith this bill under nuiiual contributions contracts between the Federal Government aiuktht local public agencies. be secured by an unconditional agreement by the Federal Government to/ advance to the public agency under its loan contract moneys sufficient to meet the principal and interest at maturity of such short-term notes and required to be used for this purpose.assistance by the Department of Agriculture in farm-home design. MISCELLANEOUS PROVISIONS Title V of the bill consists of a number of'miscellaneous provisions.and. nature of a loan. Tlic bill also provides for technical. pr building and to a maximum of. relates to short-term obligations only when thoy are. it-is necessary aLo to ame.'.. general obligations of any Stale or of any political subdivision ihe. borrow moneys from private investors on shorUtcrm notes. bank's capital and surplus. instead of securing an advance fronvthc Federal Government under its loan contract. and deal in obligations of the United Slates Government.itioiis for (lie purcliase of loans as are prescril). dwelling.construction.bill. Therefore. The amendment to paragraph 7 of section 5136 of the Revised Statutes. some issues of tlitso short-term not'u 1003*. ho\\e\er believes that.. some of which are of substantive importance. and obligations issued under authority of the Federal Farm Loan Act or by the Federal \\omc loan banks. may." The Treasury Department.000 with rcspe t to any one farm..000 in the aggregate to any one individual.HOUSING ACT OF 1949 31 limited to $J . in connection with a slum clearance or low-rent housing project.to.

thus validating any payments already made \\itli the approval of PHA and in other cases permitting payments in lieu of-'tax'es on the restricted basis (generally 5 percent of shelter rents) authorized for'these 2 :years in subsection 205 (b).19. with regard •> the necessity for enacting section 307. "ristics.Lj PHA.ensus \yould obtain infornjation coiicui-niag the numher. and geographic distributio. regardless of their views on other aspects of the hill.the independent oinces appropriation bill for 1950. Similar considerations led the Committee oil Appropriations to omit this personnel limitation from the provisions go\crning the Public -Housing Administration contained in .ed. This «. Thu committee \\as deeply impressed with the unanimity of favorable opiiu'c. as had previously .authorized. v-^_ ' The section would also lopeal a .< our housing inventory which would lhro\v light on the size and quality of the housing supply and the \say in which this supply is currently being utili/.i of all d.he project.completion of (. and as . chanu . R.isiu \\c ild also-l:i« granted l_ho authority to assemble suppk-nicntal statistics in aauuu:e-of or after the taking of such housing census n.uality.contracted lor. the coinmi 'ce does _-not in any way u islu to minimi/e the value which is to he obtained from more frequent sample studies such as the one taken m April - 434 : : .- IT 7SING ACT QF 1949 ^ 6 / -AMENDMENT OF GOVERNMENT CORPORATIONS APl'ROPRIATlbX ACTS FOR '1948 A5TO 1949 .will be authorizcd-in the future under subsection 205 (b) of this bill. .:32. that no payment* of annual contributions should be made which \yere occasioned by payments in lieu of taxes in excess of amounts originally .proviso in the Government Cor^ pbrations Appropriation Act for 1949 which limits the number of employees of the Public Housing Administration above grades CAF1.i it feels nect'ssai'y to I hi.United Stales-and the Territories. and the House last month passed that appropriation bill without such ajjmitatioh.l number of such employees.lia\\. This section would give the Bureau of the Census the authority to conduct a census of housing in c.ith respect to those agencies.iii..0 ana P-3 to not exceeding 20' percent of the tota.49 included provisos to the effect. Puerto Rico.and to purfoim important supervisory activities . The committee believes that this limitation it unduly restrictive and that it^vill prove especially detrimental during the remainder of the fiscalyeai ±o efficient operations in view of the Public Housing Administratioix's increased' responsibilities under this bill to furnish financial and technical aid to hundreds of "Seal public_ agencies.The Government Corporations Appropriation Acts for 1948 and for .i of the witnesses. and Aln=ka in 195 and decennially thereafter. This restriction had the effect of prohibiting payments in lieu of taxes equal to 10 j)ercent-of shelter rents.velling units in t i n . These provisos of the twojippropciatioii acts arc therefore repealed as of the beginning of Ik" fiscal years for which they apply. q.»ch of the 18 States and the District of Columbia.. In recommending <i decennial:census of housing. CBXSUS OR HOUSING The hearing*on H. 4009 made it clear to your committee that there is au urgent need for comprehensive up lo-d'alc information Oj. The Bureau of the Ce.

Such early legislative action is necessary to permit essential advance planning and organization. However. In view of the tremendoup graphic shift. city planning. this information is in the main seriously outdated. Your committee calls attention to the paramount importance for completion by the Congress of early . It has alsro driven home to this . Despite this widespread interest in housing information. 2203. there are still many gaps in our knowledge which can only be filled by a complete census of housing. of course. The census provisions of this bill are identical with those in. taking of a census of housing in 19. your . This is especially true since planning has already started for the 1950 population census. Information obtained in the census of housing will. without which the quality of the 1950 census of. a census of housing is of tremendous assistance to the large . therefore. on May 9. Considerations similar to the foregoing led the House. and local officials charged with the responsibility of dealing with problems of housing. Helpful as this sample study has been. particularly to localities participating in programs "under titles I and II of the bill.tate. This sample study of the housing situation made it possible to identify the overall dimensions of the present housing p^blcm. namely. to pass H.S. AMENDMENTS CONCKKMiNG THK DISTRICT OF COI'UMIUA I'ROl'OSKD HY TUB COMMITTBK Your committee recommends the enactment of two ne>v sections to bo added to title V of the bill which it lias found to bo necessary if the District of Columbia is to be able to obtain the benefits provided 435 . Thus. urban redevelopment.50 or in subsequent census years. there is now no specific authority for the. These provisions arc very similar to those of the bill already passed by the House except that this bill provides for a housing. Entirely apart from its. families of low and>mqderatc incomes. a bill to provide for a housing ceiibiis in 1950. also be of tremendous assistance to Federal. ns . 1070-os passed by the Senate. The mo«t recent detailed locality information now available was provided iiVtlu-1940 Census of Housing.segment of American business and industry which depends upon housing and home building for part or all of the outlet for its goods and services. R. building construction. census as part of each decennial census hereafter. 507) should be enacted by the House as a part of this bill.action on the necessary authorization for a census of bousing.committee believes that the census provisions iu Ibis bill (sec. and related activities. and since the housing census is to be taken at the same time and by the same staff. that steps be taken to get necessary locality information 6n-a current basis. social welfare.HOUSING ACT OF 1949 33 1947.in population which have occurred since 1940.committee the shortcomings of our present supply of housing hvtuiius of its adequacy in coping with the heeds of an important part of our population. S. Such current information will be invaluable.o the vast improvement in our general economic situation sinci it time. it is uot possible through sample studies to obtain detailed housing data on a locality basis. It is imperative.housing would be impaired.value to those directly concerned with the . and this committee is convinced that these somewhat broader provisions should be adopted.housing problems of the Nation.

and labor. «••> members of ( l i e National Housing Council in the Housing and Home Finance Agency. in recognition of the interest of these agencies in problems related to the Federal Go\ eminent'a housing program .of this billj on the same basis as provided in this bill for other cities throughout the country. The proposed new section 509 would permit the District of Colupbia to obtain the benefits of Federal aid for slum clearance.housing assisted under the United States Housing Act of lfl:)7. industry. It would provide that in the event such local grants-in-aid arc Jiot sufficient to meet the local grants-in-aid requirements. under appropriate conditions. the inclusion of the Secretary of Labor. the appointment of and compensation foi a Deputy Housing and Home Finance Administrator to. are approvablc forothcr ci tics and Stales. but the.34 HOUSING ACT OF 1949 . Territories.amend-. or his dcsigncc. . . finance. and (ho Federal .Security* Administrator. meiit \\ ouKLprovide an alternative method of financing slum-clearance and redevelopment operations in the District of'Columbia-by vesting in the Redevelopment Agency (subject to the approval of the Commissioners of the District*of Columbia) the power !o accept 'Inancial assistance authorized under title I of this bill. and municipalities under titles I and EC of the bill. . . or his dcsigncc. the District Commissioners would -be authorized to enter into agreements with the District of Columbia Redevelopment Land Agency to make cash payments of such deficiencies from the funds of the District of Columbia._ Oilier pro\ isions uf this title of the bill pro\ idc for the appointment by the Housing and Home Finance Administrator of advisory committees which would serve to further cooperation between the Cnnernmcnl and prhatc persons aiiu grot:pa interested in housing fiom the \icwpoints of the coiiMiiuer.assist the Administrator and to act in his absence. to low-rent. The proposed new section would also authorize the Administrator of the Housing and Home I'mance Agency to allow credit for local grants-in-aid iii connection with projects undertaken with the District of Columbia. OTHEIl PUOVISIOXS . under title I . to the same extent as local grants-in-aid. The proposed new section 508 would restore to the National Capital Housing Authority its power to acquire sites for low-rent public housing projects^ thereby enabling the Authority to participate in the title n program on the same basis as other'local housing authorities. The present District of Columbia Redevelopment Act would remain in full force andi effect. for States.jl he coiuersion of certain State-aided low-rent or \etcraiis' housing projects. under title t of this bill. Appropriations to the District Commissioners would be authorized for such purpose where necessary. 436 . and the usual terms nt> to separability and the act being controlling in the e\cnt of inconsistency w i t h any other net. .

000 and the total-authorization placed on a revolving-fund bask.. production.nl over a 40-year. a iilun total authorization. to eliminate slum and blighted areas. S2 IBM 250 l.000. at any time or times bj the Frcsidcn! by. tho anniul contributions actually paid have amounted to 5S.^i.5 512.to exceed additional amounts aggregating not more than $$0.. SHOUT TITLE This section provides a short and convenient form of citation. Low.v development because of the bns-ic contribution they can make both (1) toward improving the health itiul li\ing standards of the people and (2) toward an economy of maximum umpVvmcnt. 100 •500 12. 4009.njo is i he maximum amount which inay be pniil in any 1. < Thb annual contributions authorized for low-rent public housing may be j.Farm housing . 5 1951 _225 50 275 100 2. to redevelop communities so as to advance tho growth and wealth of the Nation.housing sliortajjc.5 75 • MOO »»5 75 405 81. to reali/. XI.5 percent of the maximum amounts which could be paid. 250 100 350 100 5 105 SO . year. 1 The contributions authorized for farm housing may be paid over a 10-year period.powcr.rcntpublic'hoiislng1 Total..o as soon as feasil>lc tho goal of a decent home and a suitable living environment for every American family.950 250 75 325 100 4' 100. Thus. 1 Subject to annual determination by tho Congress within these limits.Obb 700 250 250 1. DECLARATION OP NATIONAL HOUSING POLICY This section sets forth the nuiional housing objcctu i-s as established by tho Congress ami the basic pnrriplos to be followed in attaining these objectives. and purchnsing. and purchasing powor. I iscalyea IT lew 25 TOO 25 750 100 1 101 85 S3.5 1952 1051. . production. at any time or times by the President by not.un. * Ma> bo increased.HOUSING ACT OF 1949 35 L MAXIMUM RATES OF FINANCIAL COMMITMENTS UNDER H.5 Contracts for inmul contributions: Total annual contributions 10Z5 SO ' 1 SI •104 SO 1. the section establishes as specific objectives a volume of housing production and related community development sufficient to remedy the serious.000.000.000.000. 4009 [In millions of dollars] _ Commitments Tor repayable loans: Slum clearance * . In so doing it-atrcsaus the Xation's interest in housing production mid related cuiiimunit. 2. R. The SlOO..000. 1 Thb. amount added to existing authorization of $500. repayable loans Contracts for grants: .Y SECTION ANALYSIS OF H.Jiousing industry to make ih> full •contribution loward an economy of maximum employment. Since the inception of tho original pr. within total authorization. Tho kcysionp of tho national housing jjolicy established by tho Congress m this section to facilitate the attainment of these objectives 437 . * May be Increased.5 i May bo increased. * Any subsequent year. period.OOO. R. not to exceed additional amounts aggregating not more than $100. SECTION H. within total authorization. AS AMENDED SECTION 1.. and to enable thu. .000. at any time or times by the President by-additional amounts aggregating not more than $250. SECTION' 2.

(2) the reduction of the costs of housing without sacrifice of such sound standards. livability. and without Mich aid. the objectives and pollens thus . and size for adequate family life. where needed.of housing of sound standards of design. afid sanitary farm dwellings and related facilities shall be extended only win re the farm owner demonstrates that he lacks sufficient resources to provide such housing on his own account and is unable to secure necessary credit for such housing from other sources on terms and conditions whicUhc could reasonably be expected to-fulfill. the section states that governmental aid to clear slums and provide adequate housing 'for urban and rural nonfarm families w hose incomes are so low that they are not being decently housed in now or existing housing shall be extended to those Jocalitjes which estimate their own needs and demonstrate that these needs are not lieing met-by reliance solely upon private enterprise. with the active participation of private enterprise. and that governmental assistam-c shall be utilized where feasible to enable private enterprise to sefye still more of the total heed.redevelopment. the-development arid redevelopment..36 HOUSING ACT OF 1949 is that private enterprise shall be encouraged to serve as Inrge. there is included a specific congressional directive to the administrate e agencies which have functions.so as to make such areas and other areas necdi. (3) the use of new designs. As a complementary policy. and the increase of efficiency in residential construction and maintenance. both temporary and long-term (but not in excess of 40 years in the case of long-term definitive loans). To asstne that all housing activities of the Federal Government will be administered in accord with. techniques. and the production. at lower cost .slandards of design.established by the Congress. TITLE I—SLUM CLEARANCE AXD COMMUNITY DEVELOPMENT AND KEDKVKLOi'MENT GENERAL SUMMARY This title provides for Federal aid to local communities for tlio clearance of their slums and blighted areas.l for residential construction available for development or. 438 . integrated residential neighborhoods. and methods in residential construction. and size for adequate family life.to finance necessary project costs. and that governmental assistance for -decent. .and " . (4) the development of well-planned. Two types of assistance arc authorized: 1. at an interest rate designed to return to the Government the cost to it of the funds it loans. encourage and assist (1) the production of housing of sound. the use of standardized dimensions and methods of assembly of home-building materials and equipment. and duties with respect to housing to so exercise them as to. and that appropriate local public bodies shall be encouraged and assisted to undertake positive programs of assisting the development of well-planned. Loans. pf communities. materials. housing industry at a high annual volume of residential construction. construction^ livability. powers. construction. and (5) the stabilization of the.a part of the total need as it can. integrated rcsi? dcntial neighborhoods and the development and redevelopment of communities. safe.

That any project assisted be related to the improvement of housing conditions in the locality. 500. consistent with the sound needs of the locality as a whole. or unified metropolitan basis. locally managed. This section. Section 102 provides for assistance in the form of loans \\hich (whether temporary or definitive) must bear interest at not less than the rate specified in the most recently issued bonds of the Federal Government having a maturity of 10 years or more a. -~ 4.area. the rehousing of the families displaced by the clearance of the. and safety for dwelling accommodations.81-1 0 . . sets forth the forms and extent of Federal financial assistance... least one-third of the difference between the aggregate costs of all projects of the locality and the new reuse values of the land comprising Ihc-pfoject areas. locally approved.. HESrONSIBILITIES This section provides that in extending financial assistance under this title. LOANS 1 J / . in extending financial assistance under this title. locally planned.capital-grant subsidy where necessary to enable the Land in the project areas to be made available for-use at prices consistent v ith prdperran'd'SQund'land use and. or regional (within a State). and designed to serve •Ideal-needs. suoh areas by private enterprise.planning. H. or as arc established on such other basis as permits such agencies to contribute effectively toward the solution of community development or redevelopment problems on a State.- HOUSING ACT OF *949 37 . and (2) preventing tlie spread or recurrence. the date the contract for thu loan is made'. In-the administration of the pjqgram adherence to the following principles is required: 1. Any long-term definitive loans made pursuant to this title must mature within a period not exceeding 40 years from the date of the bonds evidencing such loaiw. That_evcry project assisted be a local undertaking. That there shall be local . Kept.. or regional (within a State).2. SECTION 102. to encourage the operations of such local public agencies as arc established on a State. or unified metropolitan basis. and improvement of building ami related codes.t. sanitation. 5. . in such community. That the redevelopment plans for the redevelopment areas in the locality afford maximum opportunity. 3. __ 2. of slums and bli0!itcd areas through the adoption. . together with section 103. for the redevelopment of. SECTION 101. That there be adequate provision for.financial participation in ah amount equal to -a. The administration of the program would be under tlie jurisdiction of the Housing and Home Finance Administrator. the IJousjhg and Iluinc Finance Administrator shall give consideration to the extent to \\liicli the locality has undertaken positive programs for (1) encouraging housing cost reductions and efficiency in construction through the adoption. and modernization of local codes and regulations relating to land u^c ami adequate standards of health. improvement. It also requires the Administrator. A ..

. after receiving advice from the Council of Economic Advisers as to the gciu:ral effect of such increase upon the conditions in the building industry and upon the national economy.000. To provide. especially schools.tr'ucl ..tax base sufficient to permit the '-ouancu of bonds for building. CAPITAL OUANTS This section provides for Federal subsidy.the funds necessary to make the loans. respectively. tenipofnry loans may bo:riiade (pursuarit'tp subsection (b) of section 102J to municipalities or other public bodies for the provision of school and other puUu 'buildings or facilities necessary to serve or support the new uses of land in the .38.000 on and after July 1. 1950. It contains a provision to enable the local public agency to obtain loan funds from sources other than the Federal Government to the fullest extent practicable. This loan authorization becomes available over a 5-ycar period at the-following v. particularly in tlie case of outlying projects which can facilitate the clearance of central shim areas.land which is open or predominantly open.the school and lease it to the school district pending the ability of the district . and any of the authorized inn-cases therein becoming. 'j'his is necessary. in those cases \ylicro~s'liiilj assistance is necessary if the land in the project area is toTbo available for proper use in accordance 440 . the school district for such an outlying.made.000).initiation by the President.000.000 on and Jtcr July 1 i..000 on and after July i. each of the years 1951.. and" by $250. For example. \Miile providing for federal assistance in the form of loans where necessary. Such temporary loans-must be repaid in not to exceed 10 years.to take the building over through -the issuance of its own bonds. the suction also contains provisions to facilitate financing _ by private capital.upon the condition that such advances of funds shall be-repaid.000. where difficulties may arise due to the lack of t i-rtain public facilities.000. The section also permits (he initial loan authorization.local public agencies for survej's and plans in preparation of projects which may be assisted under this title.available in any your to-be increased (subject to the total loan autliorhalion of $1. 1952. Tbc section also provides that the Administrator may make advances of funds to.000.on. that such action is in the public interest.s.000. by not to exceed additional amounts aggregating not more than $2fiO.project a»ea.000. SKCTION 103. and that the contracts for such ad\ances of funds may hi. in the form of_capital grants.thc Administrator is authorized. area might not have a. or alternatively a loan could Tic made to flio Veal -public agency -undertaking the project so that this agency could'coi. HOUSING ACT OF 1949.000. with interest at not loss than the applicable going Fed.itc: S25. with the approval of the President. at any time or times. out of any moneys winch become available to such agent} for the undertaking of the project or projects involved. a temporary loan could be made to the school district itself. ml rate. In siicli a case.000 upon a dot<>. and to substitute such funds for "borrowing from the Government. 1949. to issue and have outstanding at any one time notes or other obligations for purchnse by the Secretary of the T.-casury aggregating riot more than $1. In connection with any project.000. and 1953. a new school -until the project area is actually developed. increased by $225.

1951. In the event that local grunto-in-aid -were sufficient to cover the entire loss.correspondingly.ar period at the following rate: $100.uld be limited in amount to two-thirds of the net cost of the projects assjstcd_in the locality. Thus.oJO (being two-thirds of the loss of $300.000.ed increases therein becoming available in any year to be increased (subject to (lie total capital grant authori/atio'n of $500.i deterniiniilion by the" President. 1950.\ Federal capital gnints under this title and to call upon the Federal Gournmcnt fur nid only to.XTS FOU LOCAL fiUAXTS-IN-AIR This section requires the locality to share the net losses of any project iissialuil b.under tliis title cannot exceed two-thirds of the net loss on such projects.000 upon . and any of the au'hori/. 1952. the basis for the sharing-of Federal and local grants for all oilier projects in the locality. c. The capital grants wo. the extent necessary. no Federal grant would be made for the project.that tholouil community mustitself participatefinancially 441 . The Administrator is nulhorizcd to contract to make capital gnnts aggregating not more than $500. that such action is in the public interest. T!ie section also permits the initial capital grant authorization. it. respectively. HKQUinKMr.000 (including 8150. Although Federal loan assistance for the acquisition and preparation of open land for residential use is provided for. no local grantsin-nid are required. und 1953. the Federal capital grants being available for not to exceed two-thirds of such Joss and the local grnuts-in-aid being available for at least one-third of such-loss.000.000). Accordingly^ no Federal capital grants niay be made" in commotion with such n project and. The Federal capital grants with respect to all projects of a local public agency oh which contracts for capital grants-have been-made .000. if a project cost §1.000 (ui and after July 1 in-each of the vcnrs 1949.000 in site improvements and' public facilities paid for by the municipality as local grants-in-aid) aiid if the proceeds from disposition were StOO.000 (being flic difference between the loss of $300. aim net losses used as. after receiving advice from the Council of Economic Advisers as to the general effect of such iiicnmsiuupon the conditions in the building industry and upon the national economy. This capital grant Authorization becomes available over n o-yi'.OOO. 'the Federal grant \\oiild"-then bjj limited to $150.000) rather than $200. resulting in a loss (or net project cost) of $300. Such projects would be excluded from the computation uf aggregate project costs. SKCTION 101.000. With respect to any individual project.000). local gnnts-5n-aid.000 and the local grants-in-aid of $150..does not appear that JicdcraLsubsidy assistance for such cases wouIcLat tins-time be justified.HOUSING ACT OF 1949 39 with an approved plan for the project area and at prices consistent with such use. This has1 the effect of providing that the net loss or writedown in-r volveil in making the land in project areas available ior appropriate redevelopment (i. the difference between flic total costs of the projects and the proceeds received from tne disposition of the land) will be shared on a 2 to 1 basis. by not to exceed additional amounts aggregating not more than $100000.000.000. It pro\ idea . the Federal capital grant cannot exceed the difference between flic net loss oil such project and the local grants-in-aid actually made with respect to that project.. hi any time or times.

the portion of the .u a feasible methoil for botli the temporary and pr. Where a locality undertakes more than one project on which Federal capital grants arc to be made.uusuly haa been yys ( to J5c made by the L'liitud States »r any agency or instrumcntafiTyA lluTrebf.provided arc charged to .the govcrniiig body of the Iocalit3'. only with a duly aulhon/.tl'ie land to tko uses specified in (ho redevelopment plan and to begin the building of (heir iiiipnncm nta within a ruiMinable t. makes it . and other public righUs-ofwaj' which may be vacated in connection with the . If aiiyTjf the public -improvement* or facilities -.project. special assessments. or site improvements in the. otherwise eligible as local granta-in-aid.amount su (barged •wotild--hot-bu eligible for incltibion as a local grant-iiL-nid. alleys. Local public buildings or facilities. such approval must include finding!)-that the federal finan . consistent with the sound iiued^ of the localit.I ai. this requirements relates to such projects considered in the aggregate. that the redevelopment plans for the mle\clopnicnt-areas in tho locality will afTurd iniixiiniini up[)ortuniiy. this local public agoncy must agree to ob. Obviously. Provisions-lire therefore included to afford reasonable^ 442 .v clopnicnt plan . shim -clearance projects cannot go forward without some difficulties fur the fiun'ilics to bu displaced. and (2) onl^v if the redevelopment plan is appruxcd^ _ b}. are not intended tu be ligid specified lions. permanent dwellings for families (o be displaced. SECTION* 105. demolition or removal work. clcaj that the local community may noi-count as local :grants-in-aid (l)'the value of any land in streets.ttm Hiance upon private enterprise.jgatu (hose '" whom it sells or loaso.oiifornib to a general plan for the development of the locality as a whole. LOCAL DETRHMIXATIOXS This section assures liat aid to projects under this title will be based upon local determination uf need and maxin. Moreover.project.iJ local public agency.s the land in the project nrca to devote. as defined in this title. The provisions of (his section ihat conlracls shall require that there arc or an: being provided. in reasonably suitable locations. The scr. and that the redr. the'project area to be dcyclupud or rede\eloj)cd. Such local assistance may be in the form of (1) ca^h grants.lioii aUu requires that there b. This suction aUo-asamvs that all projects assisted will conform to the locally approved redevelopment plan. or (3) the provision of parks. playgrounds and public buildings or facilities which are-of direct or substantial benefit to tlie_.project area..T) any demolition or removal vycikr/* improvement.itm to Federal a^hislaiico.. or facility fur whiclrlin.l to-be prcvidvi! in the contract is necessary to enable ihe land in.-rcnmih eligible in thc^evcnt lht> should be assisted by temporary loans under section 102 (b).40 HOUSING ACT OF 1048 to the extent of at least one-third of the net project cost. for the development or redevelopment of siuh arena by private entcrpiise.ime.rmaiuMit relocation of the families who have been living in the area and who an displaced as a ivsiill of the clraranco of the area. as a whole. (2) donations of land. It provides thai as a conji'.v ^ITIIII ur -. It provides that any contracts for financial aid under the title may be made (I. (2) any low-rent public housing.'.specific property owners bj way of. or (. The definition of local gnmts-in-aid in section 110 (d).

man-hours vurkcd. _ In view of the present acute housing shortage. and cxptnditures for materials.-and the proceeds -from any such sales would be deposited in-the Trejisiiry as miscellaneous receipts. 443 . development of any project assisted under.41 protection for such families.this title. In so doing. ' ..HOUSING ACT OF 1949 ._tlic Jiccds of the Co\eriiment and within the area of n land assembly project.t area us part of aguiicral city paving contract \\hich also covui-s street \\oik in areas other than the project area. The . c i t \ . SURPLUS . When »»ch land is sold to the local public agcocj' by the Administrator.. safe.. and sanitary housing be available for the displaced families in areas which have generally satisfactory public and commercial facilities.c form of project work. makes the "kickbuck" statute applicable tojill such projc'Ug. SECTION' iO_8.thc community. by pr-'viding that any IaiurVvJlit. it provides for the anointment of a director to administer the provisions of this title . Or the city may perform demolition or removal \\ork with salaried personnel in its engineering dei>arlmcnt.. it shall be sold at a price equal tbats fairimarkei value.paid for by the State.jn^icct.tiun of labor standards.in effect requiring that decent. requires tliat not less than-prevailing \\agcs be paid to those employed in the._ SECTION 107. the aggregate amouut of their . July lj 1951 j if the governing body of the locality determines that such demolition would reasonably be expected to create undue housing hardshipln. to the Secretary of Labor a^ to the nunibrr of persons employed by them.. this section would prevent the demolition of 'residential structures in connection with tnis-program prior to.DEHAL HEAL PROPERTY This section authorizes the transfer to the Administrator of any Fectaral real property surplus to. and requires monthly reports by all contractors used on the project. aud which are reasonably accessible to their places of employment. SECTION 106. the total.pay rolls. PROTECTION OP JjAHOR STANDARDS This auction designed for the ]>rotcv.provisions of this section arc general in nature. PAYMENT FOR-LAND USED FOJC J-OW-JIEXT PUBLIC HOUSING This section assures that the financial assistance under this title will not result in a double subsidy to fejIeraHy assistcd-low -rent public housing. GENERAL PROVISIONS This section gives the Administrator the technical powers necessary for the performance of liis duties under this title. For example. the city (as a part of its local graiits-in-aid) may install streets in the projvc.aj^ca made aA^ilabTe for such l6\y-QUJLt public housing must be pajd fyr-bylJie mTblicliousiiii* agency umTcrtnking Mich low-rcritj>uL)Iiclious|ng project. or other public body (other than the local public agency Timlertaking the project) are not included within the scope of this suction due to the obvious difficulties "Jiich would result where the city or other public body is making its local grantin-nid in t'. SECTION 100.aider the direction and supervision of the Housing and Home JFiriancc Administrator. Demolition or rcim>\ al work or oif '-improvernent work.

under the terms of the United States Housing Act of ^037.possible. and puriod of Federal annual subsidy to rtohievo low rents.. utilities. This titlii contains. deterioration of structures or of silo improvemcntSi or pthenvise substantially impajrs or arrests the sound growth of the community and »vhich is to be developed for predominantly rcsident/al uses. 103 (a). families whose incomes are so low that they are not being adequately housed in new or existing private housing. The title «ls» contains. to the amount.) Through these definitions ajso. and nil adaptation to current needs \v\ih respcot. JF any other deteriorated or deteriorating area which is to be developed or redeveloped for'prcdominantly residential uses.or support the new uses of land in projects on land which is open or predominantly open. TITLE IT—LOW-KENT PUBLIC HOUSING Tliis title provides for an extension v» the low-rent public-housing program to scr\c urban ami rural nonfarm. •(In the last caso-the project thereon.' j I I I ' Tins section sets:forth the definitions of the basic terms used in the title. (3) the provision of streets. including the amendments made by this bill. or open land necessary for sound community —growth which is to be developed for predominantly residential uses. diversity of ownership. a constituent of the Housing! and Home Finance Agency. as amended. and other site improvements essential for the new land uses contemplated.as provided in sec. enlistment of private capital to-financo substantially all of the capital cost of lowrent public-housing projects. except in the case of the temporary loans authorized by section 102 (b) fpj the provision of school or other public buildings or facilities necessary to serve. i mcnt or redevelopment. consistent with-its proposed new uses. or Jand which is predpmirmntly open and which because of obsolete platting. Aid under this title to assist the construction of any of-the buildings contemplated by the redevelopment plan is expressly barred. increasing emphasis on-local responsibility and initiative.'his program will be administered by the Public Housing Administration. special preferences to. the section limits Federal assistance tp-the furtherance of such pur• poses as (l)-tlic acquisition of the land in the area requiring devclop.United-Si ales Housing Act of 1937 that the }] years c/f op«rjjtio»s midw i< Jinvo i»rfiralod lo br : and desirable.42 HOUSING ACT OP 1949 SECTION 110.provisions to asaiirc complete consistency with the basic objectives of primary icliance uj>on private enterprise to do as much of the total housing job as . is not eligible for aiiy capital grant. moot the needs of veterans of low income and then families. DEFINITIONS ' . and (4)' the making of the Inncl available for development or redevelopment _ at prices. (2) the removal of existing structures and . -' 444 . the section pf6\ id<!S that no project area would qualify1 for Federal aid unless it involves cither a slum area or a deteriorated^ ' Jcterioraiing area which is pfedoniinanfly fesideii^ tial in character.• improvements. J. Through these definitions. a miscellany of technical and perfecting amendments to tin.

hul these losses should bo infrequent and. PHA in. and planning for low-rent housing projects shall be made with a local public-housing agency unless (1) the governing body of the locality has approved the application for said loan.in that locality which is not being met by private enterprise. For a period of 5 years. Such contract shall also icquiro reports showing that. It is also made clear that preliminary loans nmue under the lending powers of the PHA are to be repaid out of the development funds of the projects for which . 1949. is made for loans (other than'preliminary loans) or for annual coritribu-. ever}' opportunity is . every family admitted to the project had at the time of admission nn incjme nut in excess of the established maximum limit.HOUSING ACT OF 194 P 43 SECTION 201. Before any contract on a project initiated after March 1.ent tliat projects do not proceed. LOCAL RESPONSIBILITIES AND DETERMINATIONS. TENANCY ONLY BY LOW-INCOME FAMILIES This section provides that no contract for a preliminary loan for surveys. and sanitary housing toward meeting the need of an adequate volume thereof. the governing body of the locality must have entered jrito an j agreement with the local public housing agency to provide the local ' cooperation and assistance which is rcqiiired-by the PHA pursuant to/ this act.. Moreover^ the local public housing agency must have demonstrated to the satisfaction-of the PHA that a gap of at least 20 perccntjias been left between the upper rental limits for admission to Uic proposed . or \\as to be displaced by another low-rent Chousing project or by a public slum-clearance orM-edevelopmcnt project. 1949.project and -the lowest rents at which private enterprise^ unaided by public subsidy is providing (through new^ construction and available existing structures) a substantial supply of decent.of.financial assistance contracts arc subsequently entered into. safe.ev. and (2) the local public-housing agency has satisfied the Public Housing Administration that there is a need for low-rent housing. insanitary. as indicated by actual investigation. or ovcrcrpwdcil dwelling.now serving. Some losses iii-comiection with preliminary loans may be incurred by the . Such limits nuist be revised by the local public ho. shal] require Uie local public housing agency to fi. This section also provides that every annual contributions contract for 11 project initiated after March 1.\ subject to approval by the PHA. In the selectioibof tenants for lew -rent housing.the.n an unsafe. these icquircincnts as to previous housing conditions do not apply to World War II vetcians or servicemen of low income. tions.to be given to it to extend its servicing capacity downward in the income scale. it is also icquiicd tJiat there bo no discrimination against families otheiwise eligible on the . or was (without fault of its own) cither without housing or was about to bo without housing pursuant to a court order of eviction. hiaxfmum income limits for admission und-for continued occupancy in the project. This section thus establishes as basic national policy that wen with respect to-the segment of housing need which the regular operation^ of private enterprise arc not. however.using agchcj' if required by PHA bocaijse of changed conditions.aJcelativcly minor nature. and that every such family came frj.

44 . Specifically'._Jljng of suitable size and rent is available. COST LIMITS This section is designed to end certain inequities and uncertainties resulting from present cost limits on low-rent housing assisted by the Federal Government. arj' JunuefiuiUcor faulty. olimhmli^ )l)p jigiiinfinn on dwelling-unit cost (l)ui'not (lie liinilation on room cost.nil| Immpi-iN tli provjsion of housing for .veterans and servicemen whose death was service connected. and to compensate for the drastic increase in building costs since the enactment of the United States Housing A. apply only if the family seeking admission is othei \\isc eligible. -thereafter in selecting.is given in all projects to families which arc to be displaced "by. VETERANS' PREFEKBNCK Section 202 extends preferences to families displaced by low-ruil housing projects or public slum-clearance or redevelopment projects. SECTION 202. In . Such preferences are necessary to enable the rehousing of such displaced families and permit such projects to go forward-. As among such families.the initial selection oMcnants for a project. under this section picfurcncc.be given to the urgency.group and all other groups.largcr-si/cd families of low incbino_aud_si) discriminati's apiinsl. 202 relating to veterans' preference) to families having the most urgent housing needs. siicTi families. or families which were displaced by such a project \\ ithiii 3 years prior to aj)plying for admission. in thai (I) a limitation on cost of the entire dwelling u. prefeieneo . periodic examinations must 'be made of the incomes of all families who arc tenants in the project so that.shall be given (subject to the overriding preferences in sec. All of these preferences. if their incomes are found to. jhall . . so that the essential limitation on construction costs is still retained by tho re- 446 . have increased to the point where they exceed the-applicable income limits for continued occupancy.Ci'iliaijs for cities ol-niorirtlnin 500.any low-rent housing-project or by any public slum-clearance or re-development project initiated after the date of the approval of the Hollaing A<-t of 1049. low-income families of veterans and' servicemen of World War II will be given preference in admission for a 5-ycar period.ct in 1937. Both within tliis. irrespective of oily si/. there is a first preference to the families of disabled veterans. which place a (•piling on dwelling-unit costs as well as on room costs. of course. and if n i!v. a second preference to families of deceased. HOUSING ACT OF 1940 ground that their incomes arc derived in-whole or in part from public assistance.000population. '{'In* soptioii. After admission. ami which rfrovidcTo'^highe'c cost .tenants due consideration. A similar veterans' preference is extended as among families who have not been displaced' by a slum-clearance project. including both labor and material.p. and (2^ a dUIVh'iitial in co-si -limits linm»d -soljly on tho si/o of the community Is Tit) longer realistic due to the increasing uniformity in construction costs. of housing -needs. SECTION 203. they will be required to move from the project. iVrcforo. Definitions of'tlie terms "veteran" and "servicemen" "are provided in this section. and a third preference to the families of other veterans and servicemen. Experience has indicated that existing provisions.

. It :dso authorizes an increase in this cost liniiuaion by not more than S750 per room in areas \ylier.respectively. section also has special provisions permitting higher costs in that Territory if found necessary. This will make the increased cost limitations available in the case of low-rent projects which vcre deferred during the war. shall approve the amount of all main construction Contracts before they are awarded by the local public housing agencies. Subsection (a) relates to this pledge. This is in lieu of a present requirement ns to comparison with the average costs of private construction in the locality.. Eightieth Congress. the section simplifies determination of compliance 'with the cost limitations by specifically basing tliese limitations upon the cost of dwelling construction and equipment. PUIYATE FINANCING The basic purpose of this section is to amend the financing provir sions of the United States Housing Act of 1937 so ns to make possible thOipermancnt financing of s. 1048." HOUSING ACT OF 1949 45 quirement that contracts shall provide hi all cases for meeting the spccificd_pcr rooih limitation.2. Tho sale of bonds for the permanent financing of low-rent projects at low interest rates has been made possible through a pledge of the Federal annual contributions as security for tlio bonds. Because of special cpst problems in Alaska. the. and thus in effect limit Federal lending assistance for low-rent housing primarily to tho temporary interim financing necessary prior to the issuance of definitive bonds. taking Into account the level of construction costs in the respective localities. rent housing projects by tho sale of bonds to private investors.on constriictiolt cubtsV uiul establishes a uniforfijTcciling. on some of which a small amount of construction work was -done before they were deferred. and makes it possible. of housing needed for famijies of .. The authorization increasing cost limits is applicable to any Jowr rent project completed after January 1. The percentage of increase in the cost limitation as provided in this section is subtaiitially less than the percentage of increase in construction qosts which has actually occurred singe 1937. design. . and permit the revision j«" contracts for. SECTION 204. per room. of compliance with the cost limitations embodied in Uie cyiitroct-pursuant to tliis requirement of the act at the time the main construction contract is awarded.This section also will require that the Public Housing Administration.750.love income. the section provide^ for a higher cost limitation of 81.-ftcutc need for such housing.e it would not be fon&ible without such an increase to construct the-project without sacrifice of sound standards of construction.000 and 81.50 in sni. as coruparpd with existing Jimittitiuiis of $1. and where there is nn. In addition. It will also make the increased cost limitations applicable to.anil li\ ability. iu tho event there is 447 . not dependent upon city sizcjToTthe cost of Dwelling constniclion and equipment. In order that ilio drastic increase in building costs may not prevent the provision. This will ordinarily permit firm detcrminatio:.ntially all of tho-capital cost of low-. any projects which hayc proceeded (prior to enactment of this bill) under iho provisions of Public Law 301.ill and large cities.rttstt. .

may thus be amended to reduce the loan and aiuiunl conlrilulion period to not more than 40 years and thereby make the project eligible for an interest rate at simply the applicable going Federal rate. respectively. rather than the date the contract happens to be signed by PITA and the local public-housing agency. am1. With this assurance there is every reason to anticipate that private capital will be willing to furnish practically all of the capital cost through long-term loans and to do so at low interest rales.possession. 1949. Conveyance of title rather than delivery of . such local agency shall at the option of PITA be obligated to convey title to or deliver possession of the project to PITA (subject to the right of the local publichousing agency to reconveyance. and that in no event shall such rate >bc deemed to be less than 13/2 percent. every annual contribnuono contract (including amending or superseding contracts) may provide that. Pursuant to subsection (b). the rale used shall be the highest thereof.pursufiht to statute. for Itmii or annual contributions. Subsection (c) revises-die provisions in the act relative to the going" Federal rate (which determines the minimum loan interest rate and the maximum annual contribution rale) so as to provide that the governing rate is the one as of the dale of Presidential. Further. in the event of jv substantial default by a local public-housing agency in its. fiom the applicable going Federal rate plus one-half of I percent to simply the going Federal rale. 1949. but not in excess of the amounts contracted for. It also reduces the minimum interest rule on Federal loans made for projects where the maximum loan and annual contribution period is 40 ralher Ihan GO yeajo. or redelivery upon-a satisfactory curing of the default).. This lending power could. 1949.approval of the contract. bo made use of only if the projects and tenants were other? wise eligible under and mcol all of the requirements of the United 448 . PDA \\ould continue to make annual contributions for the ]>roject. of course. and (2) that investors who have furnished the-capital funds for it* construction in reliance upo'i the continuance of iU low-rent character and the making of annual coiir tributions therefor during the entire life of the loan.possession \\ould be requhed only when PITA detcrinines that this is necessary to achieve the purposes of the act. to pledge appropriate amounts -of annual contributions separately to oath issue or class of bonds.46 HOUSING ACT OF 1949 more than one issue or class of bojuls. Tho present power of PITA to make 00-year loans n( an interest rate equal to the going Federal rutu phis one-half of 1 percent is retained for projects initiated after March 1.cpvenants to the Public Housing Administration. Contracts for projects initiated prior Ui March 1.part. Subsection (d) reduces the maximum loan period from CO to 40 years In tho case of projects whiclunre initiated after March 1. will have their investment adequately protected. the project will continue to operate as a -low-rent housing project. provided they are not nssisled by Federal annual contributions. This would assure both (1) that. After taking title of . which are assisted by Federal annual contributions. it provides (Tint in the event there aie two or more jales of interest on such date. it clear tbat local public-housing authorities may obtain loans covering development or acquisition costs without any annual contributions being provided in connection with such loans either in whole or in . This subsection also makes.

maximum amount of annual coii> tributions at o-year intenals. It is expect . not -more than 40 vein a and thereby make the project eligible for annual contribution.HOUSING ACT OF 1949 47 States Housing Act of 1937.size of the extended program and the increased construction costs anticipated. on 'he new rale whenever this woi.!. 1949. as amended. from tin provisions of this title.luung tin 1 need for Federal-loan assistance. Subsection (h) requires that borrow ings by PTIA be from the Treasury. This is done by providing (i) that. and thus substantially reduce the total amount of the annual contributions.. In addition to substantially ix.000 in recognition of tin. with the present authorization of GO years. subsections (f) and (g) also rev iso certain.">00. by relating the gross amount authorized to the amount of obligations that may be outstanding ralhui than to the aggregate amount that the PITA may issue exclusive of refunding obligations. to 40 years as contrasted.inch as State or local governments. Contracts for projects initiated prior to March 1. The gross amount authorized is increased from $800. be amended so as to base (ho interest rate on Federal loans. amend tlie present requirement that the contribution shall not exceed a Mini equal to the going Federal rate plus 1 percent upon the development or acquisition cost of the project so that the limitation would be a Miiu-uqual. arid if financial assistance were available from other sources. in connection with such refinancing of existing projects or the sale to local public-housing agencies of the Public Law 412 and Public Law 671 projects now owned ^by the Federal Government. jiromotc economy or be in (lie fjiinncial interest of the Federal Con eminent. conditions \\ ith respect Jo Federal subsidy assistance.bond even under ad\erse market conditions. this paragraph would.and (2) that contracts fur loan and annual contributions based on a certain "going Federal rate" may. and at the same Jime achieve rents low i-nou^h to be within the means of families of low incpmc.. the statutory language with respect to PTIA's borrowing authorization is adapted to (he changes in PITA's lending program That would result.nditims and charges.\ outVimding obligation of.000 to $1. in (he case of a change in such rate. the public housing agency involved for whidi annual contributions have been pledged.1 that with this amendment PJIA's .lo the going Federal rate plus 2 percent upon such cost. and also to assure a highly marketable local housing agency . provided this does notjmpnir the rights of the holders of an. or the maximum-contribution payable. The shortened period o\cr which annual contributions may be paid will more than compensate for the permitted increases in the amount of annual contributions. the excess must be used for purpose* which will ruducu siibsuquriit annual contributions . .'. At the same time. Tlie additional annual contributions authorization made by this bill \\ould be available. 1949. in amounts which would enable the local public-housing' agencies to meet their operating costs and debt service on the Federal loan. In order to make Una possible. may thus be amended to reduce the annual contribution period to. Siibsectipn (e) limits the pciic>' over which annual contributions may be paid oil projects initiated after March I. in any year when the receipts derived in connection with the project u.000. at the applicable going Federal rate plus 2 percent. in respect to projects where the contribution period is limited to 40 years. instead of an adjustment in the . if needed.000.\cml i-xjv.

000 in each of . in a contract. the amount mndo available at the bcginning-of any fiscal year. thus making a total of 1. authority to.iting not more than 100.iction authorization to bccomo a\ iiilable at the beginning of 'each fiscal year could thus bo increased to not more than 250. commence construe nun which is nuuie u\ailable at the beginning v. more lo^ -rent public housing projects. Subsection \i) provides a definition of development cost (which is not defined in the present net) which will include in capital cost all items which would be capitalized under standard business practice. total additional annual coiaributions authorization of JHH more I him 8400..000 per luiiunn. •and any initial operating deficit. however. and each of such authorizations may be drcrensed at any lime or times by amounts a(.050. jM-acli^ in the past.gro<r. program of low-rent public-housing in uibiin and rui<xt nonfarm ureas. SECTION 205. payments in lieu of taxes. In respect to projects initiated after March 1. ANNUAL CONTRIBUTIONS Subsection 203 (a) increases the 'ublic Housing Administration's annual contributions authorization in order to provide for an extension of th«. or be reduced to not loss. 1953. be treated collectively as-one project. Subject to the total authorization of: 1.00. Iri respect to projects initiated after March 1. This definition. insurance.000 units. if he finds such action to be in the public interest. Carrying charges subsequent to the date of physicn1 completion. Tho const r.000. by $85. Subsection (j) inakes jt clear that.OOOjOOO per annum.cs the . It inueai.the following 3 years. includes appropriate carrying charges. and by S~o. local housing authority overhead.000 a year (iri addition to the existing authori/utioh).050. The President is authorized to accelerate or retard the program. they may. may not be capitalized. \\lifch. 1949. funds required frpm the Federal Government in. which limit would be increased by further amounts of 150jOOQ units on July 1 in each of the years 1950 through and including 1955.000 per an'riuni. where n local public-housing agency is undertaking two or. after receiving advice from the Council of EcQnomic Advisers as to the general effect of such increase of decrease upon conditions in the building induslryand upon the national economy. 1949.000. 1949. 1949. The new authorization thus totals 8400.006 on July 1.000 units.000 units. such as interest.000. than SS .000 new dwelling units in 7 years. PHA'may authorize the construction of not more than 150. including the cost of capital improvements made at any time during the life of the project. in line with the usual.000 now units.000 additional new dwelling units may be put under construction without further authorization from the Congress.000 additional hew •dwelling units after July 1.f any fiscal year may bo increased at any lime or times by additional amounts aggregating not more than 100. may be increased al anyf time or times by additional amounts aggregating not more. connection with.0. in accordance with business practice. authorization would be increased by further amounts of 880.000. not more limn 1.48 HOUSING ACT OF 4949 borrowing power will make it possible to provide all of the capital. Subject to the. the -extension of the-low-rent program. respectively.050.total amount of annual contributions authorization available to PJJA on or after July 1. .

ments in lieu of taxes (unless alrcadj made in-larger a. Under subsection 205 (b).roju'ct to the beginning of any fiscal year is not fully used in that year. payments in lieu of taxes will be liinitciLsolclj' to the amounts provided under contracts outstanding on Juty 1. to projecvfiscal years for which the annual contributions date is subsequent to Ju'y 1.10 percent of shelter rents. provisions in the act as to local contributions. 1947.050. subject to the total over-all limitations of S400. but if existing contracts on such projects are not so amended. after March 1. lo project fiscal years for which the contributions date falls between July I. the requirements as to eligibility fui mmilics with a -reKiUvdy large number of children. biit the contracts may authorize payments in lieu of taxes not in excels of . 194Q. this section revises. More.006 hew units initiated . 1949.on of Si00 shall be given for each member of the family (other than-th. may also include similar provisions in respect.pread between the ncomes for eligibility of families with few children and thosu with . and Inly 1. Contracts on projects initialed prior to Mnrciu-1. of course. this section provides that the o to 1 ratio shall be used for all families. This requirement of lax exemption is'in-licu of existing.o\V INCOMK Experience has proven that the existing provisions of the United Slntes Housing Act make it difficult to meet the needs of large families of low income. KOK LAIUiK FA. available for subsequent authorization by the President at any time . As.and pcrsonalrproperty taxes..000.ho family or his spouse) who is less than 21 years of ngc.050. In lieu of the present pixnision Hiich requires that net annual inrohir at the time of admission may not exceed five timuh (lie gross annual rent.mumts) will be ( authorized in the amount of 5 percent of shelter leal or i:i the amounts specified in the few existing contracts which call for amounts o\er ! J such 5 percent. TJlOMSIOXc.of the projects from all real. shall require exemption . Under this. but thai. remain effective for subsequent iisu. 1949. ill determining family nel annual income for admission an I'Xempl'. becomes-available. ! SKCTIOX 206. it is provided that 10 percent of the annual contributions^authorizations which become available shall be reserved for projects in rural nohfarm areas for a period of 3 years after the authorization. or times so that construction of the full 1. 'head of . bat the amount of any decrease would remain . nc\v provision.000 per year and the commencement of construction oh 1.MIUKS OF . In order to reserve funds for low-rent housing in urban nonfarin areas./ over.HOUSING ACT OF 1949 49 than 50.acts-or of construction starts authorized in. to permit the construction of lai^iT dwelling units. In addition to the provisions in section 203 revising the cobl I'tiiiL-JJons so at. such authorization •would. contracts for annual contributions on projects initiated after March 1. there tvill be a somewhat larger s.000 neAs dwellings. In the event that tax exemption is hot legally available. or six limes thegross rent for families \\ ith tluve or more minor dependents. in the evciit that the full amount of annual contributions cpntr. could eventually be authorized by him. SPKCIAI.1949. local contributions may alternatively be made in cash in an amount not less than 20 percent of 'the annual contributions paid by P1IA. 1917.000 units. 1949> pay^ '.

authorizes a local public-housing agency (in lieu of a $100 exemption) to deduct all or part of the earnings of such a secondary worker from family income in determining eligibility for continued occupancy.. but who become ineligible if a child goes to work upon the completion of his schooling. the famdy would nonetheless be required to move from the project. for the elimination of substandard dwellings in connection \\ith low-rent projects. as amended.fii-st entered into after sudi date. w i t h respect to all projects under title II of Public.50 HOUSiNG/ACT OF 1949 a relatively. A further difficulty has arisen in the case of families who are eligible to remain in a project on the basis of the income of the regular.-ctions of this section provide technical amendments to the United Slates Ilousir • Act of 1937. Subsection (c) pru\idi. the income of such children will not be excluded in determining eligibility for admission or in fixing the actual rent to be paidrby the family. Moreover.only a temporary matter j since it is limited to secondary wage earners whq are under 21 years of iige. This-exclusion will be . The present provisions thus tend to force children to leave the home in order to continue the family eligibility.i rcnio\cs the present requirement.1 rural noufjivin areas. Subsection 207 (b) makes it clear that contracts for fim ncial assist^ ance shall be entered into with a State.an. TECHNICAL AMENDMENTS Subsection 207 (a) amends the declaration of policy contained in section 1 of tluvnct so as to limit the future low-rent public-housing program of the Public Housing Administration t-j urban. shall include all amendments to said n»-t made by the Housing Act of 1949 or by any other law thereafter enactod. 1940. Even though this be a tempo_rary condition which will end as soon as a child marries and establishes his own home. This section. This is appropriate since the bill clearly separates the function of extending Federal assistance for the clearan-c of shims from that of extending assistance for low-rent housing. large number of children.public-housing agencies under a contrail for financial assistance. It also defines the term "initiated" when used in reference to the date on whLh a project was . not only to newlv constniclcd' projects on wh'uh contracts for financial assistance an. entered into after March 1. Subsection 207 (d. but also to any federally owned Public Law 412 and Publi? Law 071 projects on which there are no existing contracts for financial assistance but which may be sold to local . The responsibility for slum . therefore. reference therein lo the United ^tntos Housing Act. in recognition of the very substantial differences in their respective living expenses. La\\ (571. which are 452 . SECTION 207. Pursuant to this definition.clearanee is now lo be undertaken pursuant to the provisions of title I of the bill. 1940. will apply. principal-worker or workers. the various rcquijcmenls of the bill appliiahlc to projects initiated after March 1. as -amended. The other siibsi. It is contemplated that no assistance to farm housing will be provided under the "United Slates Housing Act.-s that.initiated as referring to the dale of the first contract for financial assistance in rcspecl lo Mich project entered into by the Authority and the public-housing agency. or a State agency only if such State or State agency is itself to-develop and administer the project.

Appropriations to reimburse such hinds for such expenditures are authorized. SECTION 301 This section autliorix. It may also dispose of the projects to local public-housing agencies in.000 other accommodations. These camps wheiuso traiisfcrrcd will be used as low-rent. TRANSFER AND OPERATION' OF LABOR TAMPS This sect ion provides for the-transfcr to the Public HQusing Administration. The projects tluit would be so transferred comprise approximately 40 such camps with about l. and promotion of the acceptance and application of new and improved techniques. It also retains the present provisions of tho Housing Act of 194$ with reference to the improvement and standardisation of building codes ami regulations and methods fur tho more uniform administration thereof. Act of 1937. any one State. The Public Housing Administration may continue the. of the farm labor camps now odministcrcd?by the Secretary of Agriculture. as amended.000 provided for annual cbntributionsj nor more than 10 percent of the amounts provided for grants.HOJTSING ACT OF 1949 51 required either as a result of the substantive amendments to the net provided in this bill o_r have. the rentincome ratios stipulated in subsection 2 (I) will not be applicable to the occupants of accommodations other than standard family dwellings.of migratory farm workers in the occupancy of standard family dwellings. SECTION 208. housing under the terms of . Unexpended balances of funds available in connection with such properties will be transferred \\ ith the properties to the Public Housing Administration. and standardized duncn- 453 . However.uOO standard dwellings and 9. and in making available necessary data on housing needs. and concerned with housing economics mid other housing market data. operation of llicse projects under leases or permits and tisc agency funds to pay any deficits incurred in connection with them.-beeu shown to be necessary as a result of experience under the bill. as amended. TITLE III—HOUSING RESEARCH The purpose of this title is to assist in progressively reducing housing costs and increasing the production of butter h rising. Provision is also made that jriot more tlian 10 percent of the total amount of 8428. Any of such other accommodations may be reserved for rental "to migratory agricultural workers and their families.es the Housing and Jlonie Finance Administrator to undertake and conduct a program with respect to-technical research and studies concerned with the development. and methods which will permit progressive reductions in housing costs and stimulate the increased and sustained production of housing. demonstration. and supply. Subject to the income limitations of.000. materials. shall be expended within. to be available until expended in accordance with all of-thc provisions of the United States Housing Arl'of 1937. effective not later than 60 daj-s after adoption of (he Housing Act of 1949.flic United States Housing Act of 11937. as amended. section 2 (1)--preference shall be given familics. demand. any of the methods provided in the United States Housing.

It also exempts the dissemination of the results of such technical research. however. This section also permits the Administrator to enter into researchcontracts i jr work to continue for 4 years and provides that funds so obligated may remain . and other Appropriate agencies in carrying out the research program. .disseminated in such form as shall be.) This includes contracts. such laboratories are frequently i-cluctant to tie up their facilities in short-term projects offering ho assurance of completion. When Federal agencies conduct studios or surveys for local bodies. free of postage^ reports and other documents unless a request therefor has boon previously received by such agency. and plans with respect to their ow. such agencies would be authorized to accept payment for the work done by them for credit to the agency appropriation funds SKCTIOX 302 This section stresses the intention that the Housing and Home Finance Administrator shall work in close collaboration <vilh industry and labor and with other Federal and local governmental agencies. The section further luiilcihp'Iatcs inventories to bo made by the Administrator. and make rccomincndai^ns to.upon the books of the Treasury for ah additional fiscal year. and other nonprofit organizations ^. HOUSING ACT'OF 1949 sions and methods for the assembly of home-building materials and' •equipment. surveys. and authorizes the Administrator to encourage and assist localities to make studies. in which undertaken.-any agency from distributing through the mail. (Under present authority.52 . the other appropriate Federal agencies with respect to such-action as may be necessary and desirable to overcome existing gaps and deficiencies in available housing data and the facilities available for tho collection of such data.laboratory research. The section further provides that tho Administrator shall consult with. for developmental research.most useful to industry and to the general public.and studios from the existing provisions of law prohibiting.n housing needs and markets. educational institutions.The next to the last sentence of the section is merely de^ claratory of the general principle that research conducted-with-public funds should redound to the benefit of the general public. 454 . contracts-must be performed and payments made within 2 years after tlie fiscal year. The section also provides that the results of such-technical resoan-V and studies shall be. SECTION 303 This sectiuii authorizes appropriations to carry out the purposes of the title. of urban and rural nonfarm housing needs and the progress being made in meeting those needs. This-provision is therefor^ necessary in order that a research program can he undertaken with some -assurance that the projects initiated will he carried to a conclusion. Many research problems are complex and require for their solution a scries of time-consuming successive steps. as accessary. The Housing and Home Finance Agency has no laboratory of its own and must utilize other Government agencies and contract wjth eligible agencies of State and local governments. educational institutions.

and cannot be adapted to give the same measure of assistance to families living on farms. TITLE IV— FAttM HOUSING The provisions of this title recognize the complex nature of the housing problem on farms and the interrelation of tliat problem with other problems affecting the farm economy. safe. through the Fanners Home Administration. Loans up to 33 years at not to exceed 4 percent interest.provides for the appointment of a Director to administer the provisions of this title under the direction and supervision of the Administrator.therefore authorizes the Secretary of Agriculture to extend. Similar loans. imprp\ micnt. cannot bo made self-sustaining. supplemented by annual contributions applied tu> a partial credit on interest and' principal payments. Loans and grants for minor improvements and minimum repairs to farm dwellings and other farm building on farms which. ui adjusted farm practices.HOTJSIXG ACT OF 1940 * 53 SECTION 304 This section. because the special and different problems attaching to farm housing and other farm buildings require special provisions for such housing. and laborer* with decent. This title recognizes the intimate relationship between farm. forunorc than 10 years. and sanitary living conditions and adequate farm buildings: 1.of Agriculture. economy and so places the responsibility for aids to provide adequate housing and farm buildings oil farnis upon the Department. The annual contributions could not be made available to a farm owner after the farm is made self-sustaining or. housing and the entire farm. It also provides the basic rate of compensation of such position shall be the* same as the basic rate of compensation established for the head? of the constituent agencies of the Housing and"ltomc Finance Agency. The loans would not require a first mortgage on. and not in excess of S2. their tenants.A/UU for any one farm or dwelling or building owned by one individual. in an}' event. and the grant portion with respect to any one dwelling or building cuiilil not exceed $0007 Loans are to be refinanced through cooperative or other responsible private credit sources whenever -feasible.00u in the aggregate to any one individual. The devices heretofore ^employed and now proposed for Federal assistance \\ ith respect to nonfarm housing are inadequate . share croppers. 'lessees. to (hi owners of farms which are not presently self-sustaining but which. three tyj)cs of financial assistance to owners of farms to enable them to const met or repair dwellings and other buildings on their farms to provide them. (hi: form property and could lie secured by the farmer's equity in the farm. in the opinion of the Secretary of Agriculture. 455 . can be made self-sustaining within a period of not to exceed 10 years. 3. 'hrough a satisfactory program of enlargement. The title . 2. The amount available in such cases would be limite limited lo T.

and sanitary dwelling for himself and his family and necessary resident farm labo jr for the family of the operating tenant. repayable in 33 years at 4-pcrcent interest.acceptable housing niul related facilities. so as to bring. safe. LOANS FOR DWELLINGS ON POTENTIALLY ADEOT'ATE FARMS This section provides for the assistance needed for those farmers whoso present income. and the maintenance of a reasonable standard of living for the owner and occupants of the farm. the applicant must show (1) that lie is the owner of a farm which is without'a decent. . LOANS FOR HO. lessee. or by adjustment of farm practices or methods.engage. SECTION 402. All loans would be made upon condition that they be refinanced thiuugh cooperative or other responsible .commoditics for sale and for home use of a gross annual value of not lesjs tlinh the equivalent of a gross annual -value of SlOO in 1944.or local public agency. FINANCIAL ASSISTANCE BV THE SECRETARY OF AGRICULTURE iii order . low-interest credit provided in section 402 is necossar}' in ordor to put-them into a position to acquire and maintain.unabje to securelhe credit necessary for such housing and buildings from oilier sources upon terms and conditions which lie could reasonably be expected'to fulfill.. and his determination is final and conclusive. (2) that he is without sufficient resources to provide the ncccs->ary housing and buildings oh his own account.(3) that he is. and. SECTION -103. is such that some assistance over and above the long-term.cropper.private-credit sources whenever it appears that the boi nvcr will be able to do so upon reasonable terms and conditions. Such loans. giving due consideration to the income and earning capacity of the applicant and his family from farm and other sources. State. With respect to a farm owned by an applicant whose income docs not appear to be sufficient to inake the annual repayments of principal . to eligible applicants having the ability to repay in full the sum to be loaned. a "farm" shall mean a parcel or parcels of land operated as a single unit which is csc'd for the production-of one or more agricultural commodities and wii>h customarily produces or is capable of producing such. The Secretary is required to deteimine promptly whether any parcel or parcels of land constitute a fiirm for the purposes of this title whenever requested to do so by any interested Pcdefal. or sharc.to be eligible for assistance under the title.54 HOUSING ACT OF • 1949 SECTION 401. but whoso farm enterprise is capable of boiiig redeveloped by improvement or enlargement of the farm.USING AND FARMS BUILDINGS ON ADEQUATE This section authorizes the Secretary to make loans. For the purposes of this title.tvuiild be secured by the applicant's equity in the farm and such additional collateral as the Secretary may determine to be necessary to assure repayment of the indebtedness. as determined by the Secretary. them within treasonable period of time \\ithin the group of farmers in need only of liberal credit aids. or without other farm buildings adequate for the type of farming in which he engages or desires to.

MORATORIUM ON PAYMENTS UNDER LOANS This section authon/cs the Sccrcinry to grant a moratorium upon the payment of principal and interest on any loan on which. the Secretary would be authorized undci this section to make the Joan. the be rrowur is unable to continue to make scheduled paymen.and conditions as'loans made under section 402. and..l foreclosure Mibscq. SECTION' 405.nd buildings safe and sanitar3' and remove hazards to the health of the occupant. due.. toilet facilities. by the improvement and enlargement of the farm or adjustment of farming practices or methods and thi.000 financial assistance under this section to any one individual. within a 10-year pcriud. . the Secretary will also IK nutlxirizcd to. A combination loan ami grant is limited to §1. >rro\vor if ho hnd faithfully tried to meet his obligations. his family or the community. In connection with such loans.into a. TECHNICAL SERVICKb AND RESEARCH This section provides that all new buildings contructcd. withhva. shoul. no deficiencS1 judgment \\ould be taken against such a . when such improvements arc ncccssaiy to make the dwellings i. in the fdrhi of credits on the borrower's indebtedness in ah amount not to exceed the annual installment of interest and 50 percent of -the annual principal payments in any year and not to exceed such amount as the borrower's^ income for the year falls short of the income heeded to make scheduled payments. The maximum grant with respect to any one dwelling or building would be S500.applicant hus_ adopted or will adopt a plan-to so increase his income. or building.OTHER LOANS AND GRANTS FOR MIN'OR IMPROVEMENTS TO FARM HOUSING AND BUHjDINGS This section aiithorizes'the Secretary to extend financiabassistance to the owner of it farm for which there is no reasonable prospect of development. period of not more than 10 years.iently he necessary. structural supports and similar improvements.farm capable of supporting adequate housing anu farm buildings AVith respect to such a farm. This section also authori/.. to circumstances beyond the bonder's control.es the supervision and inspection of construction to the extent which may be 157 . on tlie same terms. This agrccmcntj -with respect to credits. and to a mnximu.--agree to make annual contributions.HOUSING ACT OF 1949 55 and interest within the maximum period of the loan. will accrue only to-tlic benefit of the borrower or to such other 'eligible persons us the Secretary may determine. interest might lae canceled during (he moratorium. such as roof repairs..with such plans and specifications as may bo required by the Scu clary. convenient and sanitary water supplies. if the income of the applicant can be sufficiently increased.s without unduly impairing his standard of living.000 with respect to any one farm. SECTION* 404. In extreme hardship cases. or repairs made with (innncinl assistnnce under this title ahnll be substantially constructed in accordance. and eligible applicant could secure from the Secretary a grant or combination of loan-ami grant to cover the cost of improvements or additions. screens.n of $2. dwelling. SECTION 406.

ability. Committees of farmers appointed under this section or pursuant to existing law.carry out the purposes of this title.ixe and corning capacity of the land. and research to provide an adequate basis for extending financial assistance and for the preparajion of estimates -and reports ph national farm housing needs and the progress being madc-toward meeting such needs winch the Secretary \voii]d be required to submit under this . It is contemplated that the research studies will •include economic. tht tyj)c ami character of the fanning operations 'contemplated and the -. building plans. and sanitaiy dwellings for the family of the occupant. mid experience. PREFERENCE FOR VETERANS This section requires that [he Secretary of Agriculture give preference to \ctcrans and families of deceased servicemen as between eligible-applicants for assistance under. technical. SECTION 4 0 7 . SECTION 409. construction supervision. this section it is:i :belic\ I'd that funds made available to eligible borrowers will . i\o will take into consideration such tilings as tlu. and whether the farm with respect to which the application-is made is of such character-that the making of the loan will:-. SECTION* 40K. his character. This section also autlvorix. The Secretary would also be authorized . as he may determine. without charge or at such charges. specifications. mid'inspection wpujd-dcpcnd upon the character of the construction and the amount of tlralpah. In prescribinsr Mich standards..under this section to fur-. to any person. demonstrating and effectuating economics in farm-building construction which are so. The local committees will also <:c« lily their opinions as to the reasonable values of the farms.this title. hish.go f r -in. constructed with assistance muter 458 .56 HOUSING ACT OF 1049 found necessary for accomplishing the purposes of this title and for the preservation of the Government's security interest.section. for security purposes. including any person eligible for financial nssirtahcc under this title. principal!} tho&< appointed under the BankUcad-Jonos Farm Tenant Act.of . Through the provisions-. and similar technical services regarding faun -dwellings-ami other Luildings.liU likelihood of success. necessaiy on most of the farms of the Nation if they are to be improved with adequate buildings. specific authorization for research and technical studies is contained in tin's section.. will be utilized. LOCAL COMMITTEES TO ASSIST SECRETARY This section permits the use of committees of local farmers in examining the applications for assistance under this title and the making of recommendations to the Secretary with respect to the applicant's eligibility. supervision.advice and information. . The extent of the requirements for building plans. In order to-a-sui-e that such servfccs are rendered consistent with the primary purpose of the bill.es the Secretary to ivquiro nn applicant to agree that tho improvements.typo of housing which will pnnido Jccunt. safe. GENERAL POWERS OP SECRETARY Tlus section gives the Secretary the power to dcu-rmine and prescribo standards of adequate farm housing and othejr farm buildings for individual fiv ms and for localities.

the Ba. nud July 1. and: the lease. -the contemplated loan program begins with 825. with the assistance of the At-lornej' General and tho Uixited States attorneys.aiul sale of such security properly on tr>rms and conditions-determined by tho Secretary to be reason able I nder .oySl.. . connection with loans made uiiden.these is (lie authority to compromise' _ .ib)"~ are alsomade applicalilt to'claiins-undefthis ti. 875. July 1. Under this section. ADMINISTRATIVE PROVfsiOXS '. the Seen tary which arc necessary in the administration of a program of this iype.ut: S.000. The provisions of'the JGeneral Holit-Scttlcmci.the manner which Jias been successfully undertaken in.to be vcstedin. The Sccretaiy of the Treasury would use the proceeds of the sides of securities under the Second Liberty Bond Act to secure funds advanced to the Secretary of Agriculture. 1950.000. SUCTION .this provision.000. This ="ftion also includes such servicing authority ao collection of clajms and pursuing them to finaljudgment..000.SECTION 410.. 57- this title. and 8100. respectively.000.-h_would be granted the Secretary to release borrowers from personal liability withbuLruganUto their debt-paying ability in coimeclion with the transfer of thcjr farms to the Secretary or to-other approved applicants who assume all of a pqrtion-of the outstanding indebtedness-to the o» ?relary.000. Of most importance among .112. One of the most'effective devices in (lie servicing t)f loans is the power whij. SECTION* '111.the 'Treasury on such terms aiid conditions as 'nay bo ])rescribed by the Secretary of Agriculture with the approval of (he Secretary of the Treasuiy. These sums will not exceed 850.000 to bo available 6n and after July 1. such tenants for benefits which inure 'to the landowner.nkhcad-Joncsi.obligations arising tinder ttiis title in. shall not bed justification for tmwan anted changes in the lease or occupancy agreements between the appliesnt-and-thc occupant of such farins without the Secretary's approval. ^ Tins section enumerateso-rtai n powcrs.\I>S This section authorizes. Such ad\nncc wojld l>e repaid prinurrijy from llic repayments of principal ami interest on obligations of individual borrowers. of property securing obligations under (hi* title. 1049. This provision -lias i for its purpose assurance that the-benefits of this title vjll-be extended to the tcnants-on the applicant's farm-without the dangor of^chafging . purchasing.000. and such additional sums as maybe-determined by the Congress from time tr> time to be made available on and after July 1. LOAN FU. . HOUSING ACT OF 1. at foh-flosure sale or otherwise. 1952.tle. Actapplicable to programs administered by thcl5ci reiary ol AgntlilturT (.* so 450 .the financing of loans to farm o\snei-? by means of funds mnde available to the Secretary of Agriculture I y the Secretary of . Act.. 1951. Uie bidding for and the.'arm'Tiuant. security ]>roperl3' acquired in liquidation of obligations can be disposed of in furtherance of (he-principal objectives oFUio act.. .04. operation.9 .claims and. if iicccssar1 . CONTKIIIUTIONS This section limits the agreements of the Sj'crelary w i t h borrowers under the authority of section 403 on potentially adequate farm. in an}' court of competent jurisdiction.

TITLE V—MISCELLANEOUS PROVISIONS SECTION 501. 41)0 . • -'This section also provides that service as a member of any suck mhisory committee shall not constitute any form of service or em-.ul provides a fine of not more than $10. 2S. section 283. Title 18.{. from ])r. attorney.000 for temporary repair grants under section 404.-person within 2 yi-ars after employmeiu in niiy ag. will not exceed S50p.'. and additional appropriations for this purpose to be made available on and after each of the years 1950. andTimits additional commitments pursuant to the same section made on and after July 1 of the years 1950. accusation. contract.1951.000. or both. powers and.v or directly or indirectly interested "-before any agency. Authorization is provided finally for sums to be appropriated for the research aiid technical services! and for general administration of this.l Stales.OOOj $l>o66.ainst tho Unit ed States involving any matter directly connected \v ith -A hick such person \\ ns so employed or performed duty.. prohibits ah officer or employee of the United States from acting a* agent or attorney for prosecuting any claim against the United States or aiding or assisting in-the prosecution or support of any such claim or receiving any ginluity or any share of or interest in any such-claim.pcr annum for not to exceed 10 years. United States Code. or both. section1 281.. section 284.OOOi and $5. prohibits any . plovmcnt witliin the provisions of title IS. to bi> made on and after July 1.part.. controversy..000 or not more -than 2. United States Code. respectively. duties :uader this or any other net. charge.tillc of the bill. Title 18.000.600.000 or imprisonment._ This section authorizes the Housing and Home Finance Adminktrator to-appoint such advisory committees as may be necessary in carrying oiit his functions.500. proceeding. years' imprisonment. or not more than 1 year's imprisonment. for not more than 1 yenr. clahr.58 - HOUSING ACT OF 1940 that the aggregate contributions or credits under 'those agreements made oh and after July 1.1949. prohibits au ofT.dOO. ADVISORY COMMiTTEES . -and' provides a fine of not inqro than $10. and 1952. United States Code.ciisationi for any services rendered or to be rendered in relation to am.cer or employee of the United States directly or indirectly from receiving or agreeing to recui\e any citiui. " .'iicy of th. or both.ftnd$2>000. SECTION 413. Jt provides-n fine of not-more than $10.osecuting or acting as counsel. any claiinsj ni.OQO-»rcspcctivcly. a.000. to those calling for additional annual credits of not more than $liOOO. United States Code. and 1952.. or ngenf lor prosecuting. authorizes an initial appropriation of Sl-. It also.1949. in the amounts of $2.000.000. $4iOOO. section 281.Uhil >. 1951. court or commission. " _ " _ . Tilli' 18.'. nrrcot or other matter in which the United Stales is a. ." AUTHORIZATION FOR APPROPRIATIONS This section authorizes appropriations to supplement receipts from borrower? so that the Secretary of Agriculture may fully repay the Secretary of the Treasury the amounts advanced ami-interest"thereon when due. or 284.

section 303 (b).grants exception from such .'as amended (whichnow section is added by sec.as to not bring a member of the advisory committee who is doing business with the Federal Housing Administration within the prohibition of that section. 204 (b) of the. and. the}' could be purchased for the banks' own.this.section-of the bill provides n complete exception from title 18.definitive bonds issued by'local public-housing agencies in connection' with the low-rent public-housing program.local public^housing agency definitive bonds and. 461 . relates to short-term obligations only when they are classified as "investment securities. special-security features would attach to . Public Law 253." JIowev<_'i:. 15y reason of the provisions of the new section 22 of the United States Hmising Act of lQ37.HOUSING ACT OF 1940 59 This section -follows title IIJ. whereas the National Security Act . bill). •. investment in such obligations by thooc-bank& would continue to be subject to the sninc restrictions as arc applicable to local public-housing agency definitive bonds. section 284. Section 502 (b) is a technical amendment which should be made in conjunction with the amendment of the National Banking Act pro? vided for in section 502 (a). short-term notes (which obligations shall have a maturity of not moiv than 18 months) issued by local public agencies in connection with shiinrclcarancc projects or by public-housing agencies in connection with low-rent public-housing projects. when adequately secured. account only to the extent of 10 percent of unimpaired capital and surplus. The pi o visions of this section of the bill necessarily must be broader so . Therefore. Eightieth Copgress—the jvalional Security . it. made by subsection 502 (a). section 502 (aj provides for an amendment of the National Banking Act sp.• In recognition of these security features. when secured by a pledge of rights of any such agency under its loan contract with the Government.. AMENDMENTS OP NATIONAL BANKING ACT .such department or agency is direct!}' interested.provision unless the act of such individual-is made unlawful when'performed-by such individual. . SECTION 502.matter which directly involves the depart^ • mentor agency which such person is advising or jn which. Special security features would also attach to short-term notes issued by local public agencies in connection with slum-clearance projects. thai national banks. .United States Code. and by public-housing agencies in cqniicclion with low-rent housing projecjs. to underwrite. The amendment to paragraph seventh of section 5136 of the Revised Statutes.provision-. \\hich are now issued without-these special security features. _ .Act of 1947—except that. In other words. and (to the extent permitted by State laws) State member banks of the Federal Reserve System. -with respect to any particular. there could arise some question as to whether some issues of these short-term notes would be investment securities or would rather partake of the nature of a loan. Without this amendment. would be authorised to purr chase larger amounts. is necessary to also amend section 5200 of the Revised Statutes which prescribes the same limitations for the purchase of loans ns arc prescribed by section 5136 for (he purchase of investment securities..

greater number of trained technical employees will lie rcquhed than were necessary under the former operations of the rp'. as had beciLpreviously authorized 'bJVlIIA. and prior to January 1.60 HOUSING ACT OF 1949 SECTION 503.tal number of administrative employees.-iu-y when low-rent. SECT. to low rent housing assisted under the United States 1 fousing Aft of 1937. shall be included in the membership. 1949 COl: "ORATIONS CORl'oRATIONS .of the National Housing Council in the Housing and Home Finance Agency. uiuier siHHJfiod conditions.-APPROPRIATION ACT. Under the expanded program of low-rent public housing a relative!}. 1950. thus A ululating any payments already made with the approval of PHA and in other cases permitting payments in lieu of taxes on the restricted basis (generally 5 percent of shelter rents) authorised for these 2 years in subsection 205 (b). ' 50G. AND THE GOVERNMENT . AMENDMENTS OF THE GOVERNMENT APPROPRIATION ACl. The conditions to such conversion aio («) a contract for State financial assistance for such project was entered into on or after January I. is oilcan become eligible-for assistimce by tl'io Public Housing Administration in the form of loans and annual contributions under the provisions of the United Stales 462 . DEPUTY HOUSING AND HOME-FINANCE ADMINISTRATOR This section provides for tin. 1948. The Government Corporations Appropriation Act for 1949 also limit* the number of employees of the Public Housing Administration above grades CAF-10 and P-3 to not exceeding 20 percent of the to. arid as will be authorised hi the future under subsection 205 (b) of this bi'l.limitation in order to permit the recruitment of the (mined personnel which \\ill be necessary to put the new program into operation. (b) the project. The 'Government Corporations Appropriation Acts for 194S and for 1949 included provisos to the effect that no payments f annual contributions should be made which were occasioned by payments in lieu of taxes in excess of-amounts originally contracted for.appointment and compensation of a Deputy Housing and Home Finance Administrator who would act as Administrator during the absence or disability of the Administrator or in the event of a vacancy iu that office. NATIONAL HOUSING COUNCIL This section provides that the Secretary of Labor or his dcsignco. and who shall perform such other duties as the Administrator shall direct. SECTION 504. J948. CONVEKSION OK STATE 1-OW-RENT OR VETERANS' HOUSING PROJECTS This section permits SCatcrakled low-rent housing or veterans' housing to \>c riitiAH'-i'iyil. These provisos of the t\\o appropriation-acts are therefore repealed as of the beginning of the fiscal years for which they apply. public housing represented only a small poidon of its total responsibilities. SEC1ION 505. This restriction had the efl'cct of prohibiting payments iti lieu of taxes equal to 10 piTi-e-ut of shelter rents. This suction also repeals tliis 20-pcrccnt. and the Federal Security Administrator or his designce.

in thoeuuit such local gninU-in-nid arc not suflicient to meet (lie local grajiU-in-aid rcc|uiieinenl. and other appropriate agencies operating in the District of Columbia to recehc the benefits of titles 1 ami II of IT. as amended. R.public-housing-agency operating the . The section niithurix. under title I of U. 400'J.=>iinilar<yro vision contained in section o03 of the Housing Act of 194S wliich applied only to projects -\\hcre-a State contract -was made .project in the. it provides an alternative mot hod of financing slum clemanco and redevelopment operations in the District of Columbia Rcdou'lupment Lund Agency by vesting in that Agency (subject to the approval of tlio Commissioner.-j-ent public housing projects assisted under the United Stales Housing Act of 1037. values.s. 3 This section provides a permanent authorization for the Director of the Census.power to acquire site" for lo\\. Without this amendment. 4009 on the same basis an-. A Inch-included information about the number. SECTION* sbs.provisions of this . the District of Columbia) die power to accept financial assistance which would be authorized under title I of 11.section of the bill. CKNSUS OF HOUSING . 1949.o approprintioiis to the District Commissioners for such purpose.es the allowance of credits for local gnuiK-iii-nid in connection w i t h projects undui taken \ \ i t h i n (he District >ji Columbia. R.\goncy tomake casli payments of such duficicncics from the funds of the District of Columbia and to nuthori/. (ho District. 4009. Under the. characteristics. Its inclusion. including the amendments contained in title II of the . in the year 1950 and decennially thereafter. HOUSING-ACT OP 1949 - 61 Housing Act of 193t. and other municipalities would he authorized to paiticipate. 463 . ft also provides that. R. geographic distribution. as amended.ii! this bill makes necessary thed'epeal of a. State makes application to the Public Housing Administration for Federal assistance for the project under the.) in conjunction with and as a part of the population inquiry of the decennial census. etc. DISTRICT OF COMJMHIA PARTICIPATION" This section makes available to the District of Columbia the benefits proMdcd under titles I and H of the bill. -. SECTION" 507. rentals. It authorizes the participation of the District of Columbia .prior to January 1.bill. of Columbia Redevelopment Act of 1915 is continued in full forco and c/l'cct.Redevelopment Land Agency. NATIONAL CAPITAL HOUSING VUTHOUITY This section-would restore to the National Capital Housing Authority the .Finance Administrator may rely upon agreements entered into betwcon t lie District Commissioners and the District of Columbia Rcduxulonnumt Land . to the same extent ns local grnnts-inaid are approvable for other cities and Stales. SUCTION 509.--terms of the United States Housing Act of 1037. the District of Columbia would not be able to obtain the benefits piuvided by title It of the bill. to take a lionsiug census (similar to that first taken in 1940. ns amended. the National Capital Housing Authority. whore necessary. quality. the Housing and Iloniu .'. lTowo\cr. and (c) the . Territories.1 to-the ^aiiio cxlonl that the State*.of.

changes in existing law made by the bill. nnd cooking fuel. provide I in this Act. of fam. as amended. new matin is printed in italics.lit. as dofincd in this Ad . gtnoral \\olfaro of Uic Xutuin In uinplosini.l oiubr.-clared ID be tho -policy of tlic United St.s thereto. safe. 2.-.it i.. AS AMENI>KI> DHCI.-.] Tlie ihui.ifc fin I insanitary luiii-ing coiulil iuii s and tlio ucntu .-or\ ioeabi'it\. and . and'T'Q*). Sc\enfythii. nnd duvclopud an 1 ad'niiii. Such rat hi . TSECTION 510.im: of ducunt. a proved June 12.property within a . existing law in which no change is proposed is shown in romanV: ~> T'SMTKD STATES HOUSING ACT OK 1937. econDini.l shtll'!ic avtiilalilc solely for families whose net annual iiujmc <il the 464 .--liort.nl housing as defined in this .tcd to public housing undertaken under Public JLaw 30. except that in i.be usual separability clause. be undertaken under Public Luw 307.al Housing -Authority would be entitled to acquire by deed those pieces of real . .steretl io proniule .. Columbia Alley Dwelling Act. [Tho (hvollini. Whon used in Mn Act— (1) The term 'lou-rcnl housing" means jlnionl. 1931.i.. and »an!tarv dwolliiigs f(ir_fninilies of low iuooinr. Seventythird Congress. The National Caj. 4009. 3-(k).7. elTioiencv. XII.itn!. SKl'AKAHIUTY This is '.A RATION OF 1'OI. li|!hl. inn iiipluv ineia nnd In roincd\ tlie ui^. atr.N 1.? in low-rout hoiisini. minor dependent. approved Jane 12.shall be a\ ailablu wilclj for fainiliu-^uhosj not incjinj at tho time of admission do(!. It is heroin di.eiii of tho Nation. n<\fo.shall not exceed six to ono.redevelopment project . arelo'lie devoted to public housing u>. DKPINITIONS SEC. which. injurious tu tho health. CHANGES IN EXISTING LAW In compVimce with paragraph 2a of rule XIII of the Rules of tho Ilousr of Keprescntativcs. ACT COXTIlOIjLING ' This section contains the standar' provision providing that the . are shown as follows (existing law -proposed to be omitted is enclosed in black brackets. 11. to-promotc 'lit.62 HOUSING ACT OF 1949 With rcsper* fo any project •uhdeilukoii with financial assistance under title 1 ul If.safety. of tlie dwxlluigs to be furnished such families.d Congress.s all iioco.^ar.i/. n-.he COM. hi accordance with the-api. as introduced.ICV •iJKUTio.tcc. iUs fiiinKniKl nrn. that an. is to be devo. 4009 the National Capital Housing" Authority would be obligated to pay for such rtial estate out of funds mode available for such acquisition.\(.'ie. ftii I . in accordance with tho redevelopment plan adopted by the Planning Commission ami approved by the District Commissioners.sanitary dwellings within tlie financial reach uf families of lu\\ income.s nut exceed fue times tho rental (includinyc the valito or cost to them of heat. am! moral.ntc. 1934 (the District of. and in accordance with the requirements of section 107 of II.-}. 'R. to a»»i»t (lie several Suite-) an. ~" "~_ SECTION 511. water. and the last sentence of section 0 (b) (2) of the District of Columbia Redevelopment Act of 1945 inapplicable to any real property.! their political subdivisions to fillcviatu present :iml recurrini.roveil project area redc\ clopment plan.s with threu or mori. it al&u-makessections3:(f). as amended).nmf rural milfarm-areas. provisions of this not shall control la the case of inconsistency with other legislation.Jlinga in low-rc. of the eit. in [rural or urban ojmnumiUes] iti /an.area \\liicli.\ appnrtoiiaiice.

it^iilc buiUling walls (including .. or .prcdoininatc which.! lain! ac< 'nation. income" means families who arc in the Iowcst= income group and who cannot afford . is to lit.' of icatcr. [financing (inchming payment of "carrying charges). sidewalks. That for thc-piirposcs of this Act. or. The Authority shall enter inin contracts for financial assistance with a State or State agency where suck Stalt. nf //if dale oj Presidential approval of the contract /mrsxtiut to whu. winch is authorised to engage in the development or administration of low-rent housing or shun clearance. spouse. does not cffeed fiee'tiines the annual rental-(iiicliiding the value or cost to thei. faulty arrangement. 5/00. but-not beyond the poinlof physical completion). (2) Tlic term "families. under the applicable laws of th* Stale. dependencies. (4) The term ' slum clearance" means the demolition and removal of buildings from any slum area.7.the sole purpose. (3) The term "slum" moans anwar. maintenance. of the Federal Government having a maturiiy of tun jvars or more.family (other than tht-hea'd'uj 'the 'family and his spouse) of cither (a). . light. (7) The term "Federal project" meant. and prior to July 30.eci -sarv. developed and administered.li such loan* or contributions arc made: Provided. or State agency makes application for snch assistance for an eligible project which. the District of Columbia.ca where dwcllings-. (•M) The term "tcttrun" shall mean a-pcrson w'Ao has served in the actirc military or narnl service.shall include sito devi! pincnts. any pqrtoftht. and the Territories. rcs. in the case of loans 01 iinnual contribulionn.of low . Constructior . and facilities located u. a'nd-saniiary. improvements. demolition. or repair. in connection \\ith a lowrciit-huiiMiig ur-nluiii-clearancc project. «/ '><j a pv'^ii. thi. anv i>rojcct owned or-administcred by the Authority. a minor shall mean a person less lhan.igency in tciiuiring a low -rent -housing or slumdearnnce project. lack of ventilation. 4. ' " .*'ng •agency »nji/ allow. 19S. (G) The term ''administration ^ means an\ or all undertakings necessary for management. in connection with a low-rent housing .>f.s who has served therein on or after September 10. siiljsecinent to ph\sical completion.HOUSING ACT OF 1949- ' . municipality. and possessions of the United' (lu) The term "Authority" means the United States Housing Authority created by section 3 of this Act. remodeling.63 time. less an 'exemption . and sanitary-dwellings for their use. or ir. from the -ncl income of rni/'/tuniYj/. ai"l tn nlhcncisc tarrying out the devcippniint of such project.ico/i>c/y.to pay. an eremption far-each minor member of thc. annual income of such minor.v ie. ' (9j The term "noiuhvelling facilities" . other heating and making fuels. enough' to cause private enterprise in their locality or metropolitan area to buihl an adequate supply of decent.\cluding the Authority). health. if there shall be two_ or more such rales of interest. (12) The term "State" includes the States of (he 'Union. 10/. construction.of determining eligibility .\und-ihc point of physical completion. and other utilities) of the d. for planning.65 ._ (S) The term "nicjuisitiuii eo-. the amount prudently required to be expended uy a public-housing .-cllings to bc-furnished such families. or (6) all or. term ''development" means any or all undertakings n. For the purposes of 'this .. by such Stale or Stale agency. drctriril'i. (10) The term "going Federal rate [of interest]" means -[at any time] the annual-rate of interest (or. The. . 'or continued occupancy. . utility. but not bi. gas.t" mean. 10^7.]' The term "development cost" shall comprise the costs incur. financing.orals. or sanitation facilities or anv combination of these factors. safe. housing.21 years of age. are detrimental -to safety. going Federal rate shall be deemed to be not less than 2% -per centum. For .acti\ity in cpnncctidii «itli a low-roiit-housing project ma\ be coiifined.tu the ret ^instruction.0. county. term "serviceman" shall mean a person in the active military or naval service of the I'nitcd Slat. by reason of dilapidation.0. and prior lo July 2fl. W/. operation. determined. aiui-ui'ier facilities). of the United Slalis at any lime on or after September 1(1. ON ercruivding. oj admission. (5) The.equipment.lcastd thcrefrorii under conditions other than dishonorable. agency in such undertakings and : Ihcir necessary financing (including the payment of carrying charges. or other governmental entity or public bod.subsection. design. " .$100 for each minor miembtr 6} the family other than thc-head of the family and-hi.it reels.[pr slum-clearance] project[. a public hou. the highest thereof} specified in the [then] most recently issued bond. flwrf who shall have-been discharged or re..of existing buildings. (1 1) The term "public housing agency" means auv State. or.

d seal.v ati. capital.respect to such^projccl entered into by the Authority find-the "public housing agency.employee of'the Authority . (b) The .000 a year.ilhicUvi or in process of construction un the date of enactment of this Act). by one or-more of its'Officers or employee. or-em. may designate. and shall hot engage in any other business.. any assets. (b) The Authority . shall be exempt. 1 lie Administrator shall serve for a term of five years and shall be removable by tlie President upon notice an'dhearing fornegicct of duty or nialfeasaiice. or assistance of an\ hon=inj: or sliim-clearance projects or activities.C. or title held by any department or agency of the Federal Government in an\ hoiisii. a* amended. which shall bo judicially noticed. State. surplus loans. who shall be appointed b\ the -President.but-for ho-pthcr cause.>flico of the Authority shall be in the District of Columbia.. (d) Thu Authority shall be granted the free use of the mails in the same manner as the executive departmcnta-of the Government. : (c) The Administrator may accept and utilize such voluntary and unc^mpciisatcd scr\ iccn and \\ ith the consent of tin.heruaftor imposed bj.of the Federal.-) or by such agents or agencies as it in". vocation.Vet the minimi salary of which ia in excess of S7. administration.\vhich ahall bean asency and:instrumentality of'the Uiiitcd'Statte!. aiii unexpended bnlanci..5. issued by public housing agenda in connection w i t h liiu-reia-hoiijing or shim- 4B6 . as.500 per annum shall be subject to confirmation bjvlhe Senate.v. cuinty. cuntracU. attorneys. it mav t-stablinli branch uflices or agencies in any State. partnership. neither the Administrator nor any olliecr or .is hereby created in the Department of the Interior and under the general supervision of the Sce^tary thereof a body oorpi-rate_ of pcr. reserves. iminicipalil.vees \\Iio have been ei. cqiiipincut. and property of un. .v Stuto.pToyjuent..to the civilservice laws lie may appoint such officers.asset*. shall be-cligible for reappoMiiiiient.jerformance of tlie duties of the Authority under this Act. Obligations. in excess of SI. the Authority may make reasonable payment? for necessary trailing and other expenses". and shall bo rcprcsen'od in all litigated matters by the Attorney General or such attorney or attorneys as ho. (a) The principal .gJincd i'i uork connected w i t h housing ur slum clearance. or local governments as hu findt helpful in the performance of the dutica of tlie Authority. 3. by and with the advice and consent ofjhc Senate. agcncj concerned may utili/. designate. thereon. " ' . but.(15) The 'term "initiated" whenitsed-in reference to thc-datc on which. authorized. and experts and siic'i cinpluyees \\ lio^e compensation i.shall participate in any -matter affecting his personal' interests or the interest of any con>oration.v. The Authority ina. employees. and information of any agency .iairator shall receive a salarv of 510. (c) TJic Admin.ation of such sen ices. 4. UNITED STVTKS HOUSIXO AUTHORITY ^SE.i f ing or sluiu-clcaraiice projects or acti\ ities. 'to.Authority ii.Iliu Unitei^Slutes or b.nay be necessary to carry-out.pctiia] duratiohjo-be known as the United-States Housing Authority. from all taxation nuvv or. including but not limited to its franchise. Tli'. conneciion \\iih aiiy such lio. appoint and-fix the compensation of such employees iu> inav be nccessarv for the p_roRcr .\ kind.tlie purposes of . income. subject to-thft civil-ser\ice laws and the Classification Act of 1923.shall sue and bo sued in its own name.powers of the Authority shall-'be vented iii and exercised by an A\lininistrator... (lj) Appointment to positions made under the provisions of this. (d) The Pr»sident miij at any time in his discretion tr..this Actj. or local taxing aulliont.64 HOUSING ACT OF 1949 _. except that without regard .ny contiiuic anv or all activities niuU-rtakcn in connection with projects so transferred.\. subject Jo the provisions of this Act. records. (c) The Authority shall have an ofliLi.insfur to-the Authority anj right. SKC. and any cmplii.e such officers. a^projecl uas initialed refers to the date'of'thejirst contract for financial assistance in.g or sluiu-clcarancc projects (con. libraries. rusunrch mutcriftls. . (c) Tlio_\utlH)ril\. Administrator is. (a) The. Jn connection \\ ith the titili/.-. conduct hearings or negotiations at any place. (a) There .9SO per annum. atid other property held it. including interest. of funds allocated to such department or ageuc\ for the development. and may exercise any of its powers at any place within the United States. interest. or association in which he is directly or iiidircctly interested: Stc.

«es within the United States.!) or bfi aw/. and grai.-hall . anch loans x)ic:ll bear interest at a rale nol less lha-i the annlicaiilc going Itederal rali.lat< v^lhc bnnds <cidrncitiij the loan. C. and shall In repaid within . under this Act. sha. sixes of families..-. and other related information.Ic/. title 41. or loan. Such report shall inchulu op. fl>) The provisions of section'3709 of the lie-vised Statutes (U. Seventy-sixth Congtfss. 10'. shall include all aniciidiin. Public Law H71. ic undertaken by the Authority except with tlic approval of the President. Ihc first annual conlrilndinn for the proict. or administration of Iou-ruit-houMi.y contract. Such financial'transactions of tho Authority as the making of loans.-> undur the jnri.-.'<:t.books. dcpciuKncics. offices.-< provided in section 10 tin. for thu actiui=!tiuii and maintenance of adequate administrative agencies.iority-for services and to .sn/t coiil/af/* /iiri'ioiixli/ inntli. . grant.) shall apply to all contracts of the Au'.SK/ur. The Authority may make loans to public housing agencies to ns.Mich period not exceeding -i.] plus one half of 1 per centum.-aid"loans exceed 00 per centum of such cost. vehicles. G. . including loans. lease. exchange. . and for such o.'. Where capital grants arc madc-piir. approved June 2S. SKC. ax amended. of-ali '|iroji. and m \\hich the AuthorilA |inrlitipales shall not exrcul (he >UAI lupment or aciiuisitiun cost of such project loss all . than the ni>/ilic<i!ih going Federal rato [at (lie time the loan is mndc. 1439) and to maku such provWoi.-ist.total of such loans oiitstnndiiii.! is i>a. ml no contract-for any annual contribution.. provisions of section 2 of title 3 of the Trcaotiri ana-Post Office Appropriation Act f«>r the fiscal year 1934 (47 Stat.HOUSING ACT OF 1949 65 . acquisition. sec.-sale. 9.. contributiuns. dan <•! the Imiids evidencing the loan ami for (inninil conl. (d) No annual contribution.-.. That in-lhi-caxr. shall be final and conclusive upon all officers of the Government. and the acquisition. except that all such financial transact ions jf the Authorit.. periodicals.!). and the income dcrivcd:by aiicli agencio from such projects. The Authority may from time to lime-make. to earn out the provisions uf tins Act. /imfidc for loans for a period nol ucmliiifl fiiriy i/tms froin Ih.ill of its purdii-scs of supplies except uhcn the segregate ainuunt invoked is less than ?300. SEC. in the casf of sufli project* or amj ollur projects with ris/ii-cl '. and rescind Mich rules and regulations as.'.g or . rating atatcmcut. grant. and capital grant?. including suiiiiiinric.d. rentals. S. the development. printing-and'biiulii. . thu Comptroller General of the United States may by rcgulalion prescribe. of the iiiLoines uf occupants.. Thai.nls to said Act n. its Territories.\ml /irtii'idtd further. loans-shall nol be inaih fur a iiirind <jcccd inn forty years from the. for any accessary tra\ cling c\pc'.-e of annual contributions in assistance of ]o\\_rL!iihils a..i be iifco. shall be exempt from all taxation nowor hereafter imposed by tlic-Vniivii Si.-hull nol CNcced 00 per centum of tho development or acquisition <ost of such project.'cl The u>e'of funds made availablc. us ma\ be (loomed advisable b\ the Authority : Provitlul. references therein to the Untied Statin Housing Act of 1!)37. 467 . of the Autln)rit\.of/irojictii initialed after March /.lier c\|>ciises as may from time to umr be found necessary for llie proper administratiun of this Act. 10. S. (c) With respect to nil projects under title II <. SKI. 7. or agreement of any kind pursuant to this Act shall contain a pro\ ision identical to the one prescribe* in section 3 of title 3 of Mich Act.inch capital grants. and vouchers approved'by tlic Administrator in connection \\iili-iicli financial transactions. clearance projects. 1934 edition.!biiti<ins fur a puiod not tJeieding forli/ i/mif fioin llie. or loan. subject to audit under the general Ian. SEC. (a) The Authority may make such expenditures.Miant to seclioii 11 (he total amoanl of Midi loans outstanding on an\ one project. but in no ovtnt .other law thereafter enacted. f|titpiiicnt. (a) The Authority may publish and disseminate information pertinent to the various aspects of housing. or other disposition of real and personal property.li rate not less.atcs. shall bu sn tired in such manner.j. .tnlc by the Housing Aft of IS.of this Act shall he subject to tin. .U made or contracted for low-renl-luiusing and -him-clearance proji-uts undcrlakon. for attendance at meetings.-. furnishings. and the assets and liabililit-s of the Autliorit\. atsuch tiiiiCMind in aiich manner as. In the ia. -upplius. or possessions. amend.y shall be audited by the General Accounting Office. irilh rcsixct to which annual contributions' arc conIraclcil Jor imrsiianl lo lhi» . on any one project and in ul.a effective c%c. annual contributions.uh the Authority participates .0.-luinclcnrnncr project^ by suih agoncie.ma. Such loans shall bear interest at sii.for tlic p»rppses. u7n*c/i ihc contracts (including contracts irlnrli iinnnd at .xlKlion of or ruffiving the a^islat.-an. dole. '~ • (l>) In January of'each yoar'thc Atithority sliall make an annual report to Congress of !ta operations and expenses.\tv year.'.

10.* .lopmant or acquisition cost. or-administr.(b) Annual contributions shall be strictly limited'to the amounts and periods necessary. and other costs-and charges).such payments arc* due. location. at the tiine of any such recxamination. Thai no annual contributions shall be made. in the discretion of the Authority.sc any contract. in *he determination of the Authority.adminixlration. and shall be paid in such amounts over a fixed period of years'. (a) The Authority may make annual contributions to. or gel nxtdc for application. rent-paying ability of prospective tenants. * EXo part of such annual contributions by the Authority shall be made available for any project unless and until the State.i'ion cost. first to apply toward any payment of interest or principal on any loan due to the Authority from the public housing agei. metropolitan area. or tax exemptions. in the case of projects initiated after .-and. amount ci/ual to such ejrccss shall be applied^. in the form of cash or ' tax remissions.centum of the annual contrit jtioiib herein provided: J1 The Authority shall embody the provisions for such annual contributions in a contract guaranteeing their t ayment over such fixed period. city. acquisition. That all such annual contributions shall be used.rtiiCf. general or social.unless the project includes the elimination' by demolition. for annual contributions (inr. maintenance. out of nny funds avnilablu to the Authority when . Such regulations may provide for rates of contributions based upon development.CONTRIBUTIONS-IN ASSISTANCE Of LOU* RENTALS SEC.66 - " HOUSING ACT OF 4948 ANNUAL . the Authority -may nmke Mich modification (subject to all the provisions of this section) in the fixed and uniform amounts of. or other factors bearing upon the amounts and periods of assistance needed to achieve and maintain low rentals. the Authority shall rcscr'vr the right to rfexamino the status of the low-rent lions-ing project involved at the end of te_n years and every five years there-after.involved. condemnation.\p(i[)t thai ils capital and its funds obtained through the i&itmncc. That.this -end tlic Authority may prescribe regulations fixing the maximum contributions available under different circumstances."yl (CO [In ca.provided further. Thai. giving consideration to.proi'idcd'furthcr.public-housing agencies to assist in achieving and maintaining the low-rent character of their housing projects. in the ctisc of such project* ar ana other projects iiiith respect to which the contracts . in the determination of the Authority. contract* fur annual cont-ibutions shall nol be made for a period exceeding forty years from Hie dnlc the first annual contrib ' on fnr the project-is paid. at 'the applicable going Federal rate [of interest at the time such contract is -madej plus 1 per -centum. The annual contributions-'for any such project shall be fixed in uniform amounts.s of obligations pursuant to sect ion 20 ^including ri-pft\menU >»r nthiT realizations of tho principal 468 . upon the dcvclopincrt or acquisition cost of the low-r«nt housing or slum-clearance project imolvcd [: And . and effective closing. or the compnlsonT repair or impro\Lmcnt of unsafe or insanitary dwellings situated -in the locality or.. If)1. or other appropriate factors: Provided. or sanitary housing available-to families of low income is so acute as to force'dangerous overcrowding of such families. be deferred in any locality or metropolitan area where the shortage of "decent. . will effect a reduction in the amount of subsequent annual contributions.\larch I.!).' county.] . In no-case shall any contract fur annual contributions be made for a period exceeding sixty yenr. the filed contribution Hitiy exceed the amount provided in the first proviso-of niibsfftio.subsequent annual contributions payable under *"ich contract as is warranted by changed conditions and as is consistent with naintaining the. substantially equal-in number to the numbor^of ncwjy constructed dwellings provided-by the project.to assure the low-rent cliaracter of the housing projects involved.n (b) of this section bij I per ecu I inn of dere.3 K> *t contract for annual contributions shall provide thai whcnettr in any year the receipts-of « public hoiisuxj ayciuy tit umnu/iVm with a low-rent housing project-crcccd it* expenditures (includinij diltl se. Toward. number of-persons hi/used. establishment of reserves. low-rent character of the housing project. (<]) All pnymeiits of annual contributions pursuant to (his scfion shall be nmdi.ltidinij contracts which amend or supersede contracts prcinaasly mailci provide. size. and the Authority shall enter into ho contract guaranteeing any annual contribution in connection with the development of any low-rent housing or slum-clearance project-involving the construction of hew dwellings. for annual contributions is made for a )x>ribd exceeding twenty years. safe.-cost. an. number of dwelling'units.ach elimination may. [: Provided. or other political subdivision in which such project-is situated shall contribute. c\cept that. to purposes which. for annual conlribiiliaim for a period nol errtaling forty years from tkidalt the first annual contribution for the project is paiil.-s: Provided. That the fixed contribution payable annually under any contract shalHn no case exceed a sum equal to the annual yield. e. at least 20 per . And.

J as among-suchfainilits where an a/i/illi-atiim fur admission is made i nl later than fire years after . With respect to projects initiated after March 1. thousand dwelling units after July 1.000 upon a determination by the President. or may. shall rtnitirc that the public •housing agciicii.. respectively. That contracts for annual contributions with resncct ia low-rent housing projects initialed after March 1. (f) IVi\incuts under annual contributiuiis contract* shall be plcdgud as security for anylJoaiih obtained by a public luin. Tho term "any loan due to-(lie Authority" ns used in (his section shall n<< •" •.\ the Authority JncludiiiK any lyonds or-other c\iduiicos of ouch loan which arc resold b\ the Authority) )o assist the (!u\elopnu:iit of the project to which the annual contributions relate}(g) Krcrii contract inailc pursuant lo this A^ifor annual contributions for an.in each fiscal year. 19. IQ.subsection) is authorized. afar receiving advice front the Council of Economic Advisers as.000.000. or whlth jrrrc so dis/>lacctl within three i/cars prior tv maiing application-to sudt niiblic housing agency for ail mission /o anii low-rent housing./. and any such authorized increase therein. no nc\v contracts for nnniml contributions bi. 19. on and after July 1. not more .vond those herein authorized shall be entered into b\ the Authority. to/cntcr into contracts \\liich provide for annual contributions segregating not more than $28. the Authority (in addition tj the amount autKorized-by the firs.000 ^cr annum. for-a period. That (siibject to-ihe told additional authorization of not more than $400. years after such amount uf authorization becomes available. af thrc*. the Authority may authorize the commencement of construction of not to exceed one-hundred. »"ni/ be incrrg&ed at any tune or times by not to exceed in any fiscal year an addit.000. That annual contributions shall be used first to apply tuuard the payment of interest or principal as same mat tire on any loan due to thu Authority from the'public housing apciicj. "id 1952.re than of.$80.. 19. may be increased at any time or times by not to exceed in any fiscal year an additional one hundred thousand dwelling nnitf.^ual amount. 195{. icith the approval of the President.y further amounts of'one hundred and fifty thousand dirclling^iniiton Julyj in each of the years 1950 through and.-•>. respectively^ Provided.000 per annum. The-faith of the United Status is solemnly pledged to the payimsut of.ujs for occupancy in-dwcllings of <jicen sites ami. . Provided.Vnrc/i 1..to the general erf.on July 1.000 per annum) such limilj and any such authorized increase therein. which limit shall be increased b. rt of suJi increase upon conditions in the_ building industry and upon the national economy. sentence of this. the amounts necessary to provide for such payments.the publ^ interest. 1949.such capital and funds) shall not b<_ available for the payment of such-annual contributions.HOUSING ACT OK 19-19 67 of loans made out of .000 on July 1 in each of the years 1950. to enter into contracts. And jirovided further.000.000. to families tciiiih arc to be displaced bi/ any lotrj-rcitt hoiming project nr by any public •iliitn-rlrarame or rcda-ilo/nncut project. and by $75.'. for annual contributions aggregating.000./ lowrent hi *i»j project initialed after March 1.pursnant tu this Auction.than $85.bt decreased at any time or times l>u not to cjre-tcd in-anyfisetil year one. 19Jtit. be available only for annual contributions contracts with respect to piojecls to be heated in rural nonfat.000.sitiK agency to assist the de\ulopment . With respect to^projects assisted pursuant to this Act. on and after the date of the enactment of this Act. That 10 pcr. first preference shall be (lircn to families «/ disabled veteran* whose disability has bcni dcttrminui bi/ the Veterans Administration to be scrijcc-coniicctcd.at spceificd rrnls.c million and fifty thousand dinr. which limit shall be increased by further amounts of $80. Without further authorization from-Cungi•.all annual contribution* contracted for. loan made b.T aa/uLlion of the housing project to \\hich the anniinl contributions relate [: Provided. hundred thousand dwelling units. upon a determination by the President.'iO.?<i. out of any money in the Treasury not <ither\\i. after receiving advice from the'Council of Economic Advisers as to the general effect of such-increase or decrease upon conditions in the building industry and upon the national economy.'iO.ccii nn of each amount of authorization to enter into contraclsfor annual contributions becoming available hcrnndcr shall. shall extend the following •preferences in the sclcclinn of tenants: l'!:sl. 1953. (c) The Authority is authoi^ed. and scroud preference shall be 469 .-o appnpriaicd.9. And provided further. and fifti. that such action is in the public interest.it areas.. niul there !•> hereby authorized to be appropriated. as among loin-income families which aic cligi'ili n/.that such action is in.'i9..lKnrj units without J»Jhcr authorization from the Congress. including 1955. of . That (subject to the authorization of not to exceed one million and fifty Uiousund dwelling units) such limit. shall not provide for the dcrclonmtiit of in(. ai.

\ nu Fui|iicnl. lO/fl. iiAohiniylie con8J.v nient.n ancl demointrates to the sat^faction of the Autln/ni\ that MU-1. or the coinpulforv repair or improvement of iiiiMifo or in>. in the 'ncrclion of the Authorit\ r l)i^ defi.r March 1.. county.niution of .of the annual contributions paid by the Authority. sliall lip Hindu for the development-of un> lo«-rciit li(ni.->iiii. by reason of conitilulio'ial limitations or otherwise.iinount> iiu(T.and servicemen (im-i'iding families nf deceased rcjcrans 01 . in the determination of I lie Authority. .uxinfi iirojiil.i 1.nls in lieu nf taxrs iii respect lo sinh project fiscal i/curs shall br limited lo Ihi amounts xptcifitd in the cooperation (tyi con • n/'s or ordinances or resolutions. cajntnl grant:. or .i so acute as to force daiigeronsovercrowding of such families]!. •given lo families.of llifc Act.political subdivisions . the Authority may. or other •political subdivision.i in effect July 1.« trhich thr projects are 'located. except1 tli.-ojccl unless and until the Stale.carat.MilxilantialK u|i.ti-ing or shiin-tlcnrancc project. -> •CAPITAL CHANTS IN" ASSI^TAXCB OK LOW RKNTILS SKC.ion.lri' dwelling unit.">-per centum of ii.--lricll\ limited to the .. fur an.'iD.i.71 -such project: Provided. (li> PurMinnt to Mil>.-. in amounts ichich. <y (if) flic amounts specified in the cooperation agrttmcnt.i of capital grants l\v the Autlioril v pnrMiant to Millet tion U>) pf thj.s available to the Authority. capital and its fuiivls ohUii.-cction la) <if ihi. puyme. cu. to families of other veterans . charged . l9JfO.icd throiii:!h the i.68 HOUSING ACT OF -1949 - - given to families of other reterans and servicemen (Including-families of deceased veterans or servicemen).of low income i. unlc---.a) in iminlier to tin number of ne\\l\ (oi^lruc.atioii.Mn-iiun .-> (lie climi./r /.-^ituatcd in the locality or '^i-trop ililan arua.contract made pursijunt to. .50.'/!).-rrnl in an> lucnlil-.inadi.liuu. its lowrent.preside that no annual contributions-by the Authorili/ shall'be made available for such project unless such ' •project is net j.l contributions far any lotv-rcnt housing project initialed-afti r Starch 1. n l t u r n a t i \ u inctliutl i? liultur . or other pylitical subdivisions. PmviJid. or in the ordinances or resolutions <i/ such political subdivisions 'n effect on such t''itc.-the conL 'lets for annual contributions mat/ l/c annndid-iis to projul fiscal years in ri^iiect lo ir/tir/t annual contributions arc payable on or aftu •/«.apiial grant.or otlii r politi\ i! subdivision in tF/iiYJi such project is sit'ialed shall contribute.inliou liy"demolition.-afc. loflcth. conn. city. Co All pn.v or metropolitan nrjn where tne .project hull lio pnid in t-uniiuclioii \\ith it.'. iu-. . \\lien au. vvhii'li-.mly.s iroxidi-d 1<\ the projcd. . shall . 10. i>ro\\<\ctl in -SCCH'OII 10.grcatcr of cither CO ~> per centum of the shelter rciits charged in such projects for each nf such project fiscal years.t fof aniuiil'conlribulions arc not so annulled. city. TIi.l'from-all real and personal proj-erly taxes levied or imposed by the State.iiiirsiiaii to . 1047.-.-hn!l \n.-linll in no case e..\ pulilit. i/i/int/i the piittic housing aijincics and the. ~ __ Second. lO.> tin. sucli contract -inay provide. that no-annual contributions by Ilit Authority shall bc_ male ariilablc ftr such p. and elfuetiso eliding.iuu ilufllin^.it no (.i.\cccd 2..-i init^iti-1 pr'ur In March /.>hall lie made out jf anv fund.r with amounts already paid.section 20 vinclnding re|iii> inents or tithcr rcali/. 11. (h) Every .-> fcct. and .9.lh's Act-for anntn. to a&i. W-'fi. clinfactcr [.-» development or aco.an-application for admission in made not later than fire years aftt.\ d\\( !ling> .7..inn\ bo made to Mich agcncv fur such purpose.snitcil (o tin purpose of flohiuN ing and maintaining Ion rciitaK aid lo the other purp(>?< . In resprri-to loic-rcnthousing iirojrct-i initinlcd prior lo . in lieu of the requirement for lax exemption. at least' 20 ptr centum . That. The capital grant* tlm.n project.inil:ir. in the form of cash.Vn/r./.'. /. in llic nr»l that (he conlracl.\cc]jt that Midi climinaljon may. the Authority may make a capital grant for anj h)\\-ri .-rciil'liuiiaiiii.-luin-i.tcrriciiucn) ichcre. after the effective •dale of the Housing Act of 19/iOj authorize / aynicntx inljtn of iturei far-each of-lhe project fiscal years in nspccl to ichich annual distributions tctrc payable during the tiro-year period ending June . condunination. of disabled vclrrans ivhose disability has been determinedly the Veterans' Administration to be scrvicfrconncclcd.-^ar\.-Miancc of nbliftaliou. wilh respect to any such project to be located in any-Stale where.-iiig ngunc.'. or cauitnr\ housing available to familii. (. or nliiin-ilcaraiirc. will not cjcccd thc.iisition cost. citii. In respect to such loir-ie.nt-hr. and as among such families first preference shall'bc . xo as lo rcijuirc ixemnlion from real aii. such project is not exempt from all real and personal property taxes levied or imposed by the Stale.shortage ol decent.. (n> As nu nllcrnaiise inuiliod of a^-itiniico (o (lin.l iicrsunal properly taxes in lie.i luv..u o any other requirement*-a* lo local contributions anil lo permit payments in lieu nf taxis on the Urms prescribe 1 in the first sentence of this subxntiou.> of the principal of loans 470 . JO. but such contract may avlkfizc the public housing agcncu lo-makc payments in lien of such laics in an annual amount not in excess of 10 per centum of the annual shelter rcnti.J0.project iii(Iml<>. h<nrn'. in effect July 1.duM'lupincuL or aciiuMtion.1 ho.

DISPOSAL OF I SUEIIAI. rOWKItS OP TUB AUTIIOKITY t SKC. phis such additional amounts as the Authority shall dc UTinin .this section) aggr gating .v Federal low Trent-housing project.000.not inorc tlian 810.000.•j HOUSIXG ACT uF 1949 . an additilnal . less such allowance for depreciation as thu Authority shall fix. pending sale ' or lease. no capita! grants beyond those herein auth. on or after the date of the enactment of this Act. anj other sale. or (pursuant to scclion-23 or o//icnmc)-[othcr\MM-3 acquire or take. ~ (u) In the adininist ration of an.involved. a contribution for such project (in the foiin of cash. from any funds available fur the relief of unemployment. shall assume »nd pay all management. in lieu of taxes. and maintenance costs. (a)-It is hereby declared tc >e_the purpose of Congress to provide for the orderly disposal of any low-rent-ho ising projects hereafter transferred to or acquirud. of community facilities pr services for which a charge is usually mmle. and.. .-to-inake additional. in u hole or in part. (d) Tim Authority is authorized.' in lieu of taxes. The lessee of any project.AutIipi.^y the Authority through the sale or leasi-g of such projects as hereinafter :providcd. (b) of.. operation. or other agreement. together with pay incuts. 1932 (U. operation.000. made out of such capital and funds. or tax remissions or tax exemptions) in an amount not less than 20 per centum of its development or acquisition cost. in order to continue the relief 61 tlu Nation-wide unemployment and in order to avoid waste pending such sale or lease. " (f) Xo capital grant pursuant to this scctioii shall be made for any low-rcnthuusing of sluin-tlcarance project unless the public housing agency receiving siich . arc consistent u i t h muinlaining the low-rent character of such project.capital grants aggregating nut mure tlian §50. title 40. Without . to make additional capital grants aggregating not mor. pursuant to this paragraph. 12. sec. imsscusioii of [and may adininister] any [low-rent housing] rojuet uliieh it previously owned or in connection with which it has made a loan pnraiiaiit toscctivii 0. Jiily 1'. and cither annual contril iiitiont pursuant to section 10 or a capital grant pursuant to scnMon 11. and shall pay to the Authority biich annual sums as the Authority shall determine arc consistent \yith maintaining the low-rent character of siich project The provisions of sectioi. Such prbjci t shall (hen become eligible for loans pursuant to scctioii 9. 13. (n) The Authority may foreclose on any property or commence any action to protect or cufoicc anj right conferred 'Tpoii it by any law. 1931 edition. PROJECTS _ SEC. the Authority shall TIN the rentals nt the amounts necessary to pa^' all . to a public housing agency. That such additional capitaXgrant sliall not exceed 15 per centum of the development cost of the low-rent-housing or slum-clearance project.capital'graiits. iii~wlratcvcr furin may be satisfactory to the Authority. together with payments. (c) To supplement any capital grant inadcby-the. (d) The Authority may lease any Federal low-rciit-housing project.000. shall not apply to any lease pursuant to this Act. niaimgetiient. to make capital grants (pursuant to subsec.-. than $10.] aupual [contriljiltions ]Jiraiiant to section 10J contrilw- 471 . land. to provide for the completion and temporary administration of such-projects by the Authority. Any obligation of the purchaser accepted by the Authority as part of the consideration for the sale of such project shall be deemed a loan pursuant to section 9. 'f"an. if any. 193'. (c) Tlie Authority may sell a Federal project only to a public housing agency.further authorization from Congress. pr the value. political subdivision thereof.000. and maintenance costs.capital grant shall also receive.69. S. capitalized. 1938. 303b). the President may allocate to the Authority.000. C.iy in connection with the development of any low-rcnt-housihg or slum-clearance project.capital grant tc be expended for payment of labor used in siich devclopmeiit. from the State. OKXK1UI. and oh or after July 1. contract. or otherwise. on or-after. Am such sale shall be for a consideration.). Providid. equal at least to the amount which the Authority determines to be the fair value of the project for housing purposes of a low -rent character (making such adjustment as the Authority deems advisable for any annual contributions winch may hereafter ue given hcrcundcr in aid of the project). The Authority limy bid for nnd pjirchasc at any forcclosuro by any party oral. (b) As soon as practicable the Authority shall atll iu> Federal (jrojccts or divest itself of tlicir managements-through leases.orizcd sliall be made by the Authority. 321 of the Act of June 30./ shall not be available for the payment of such .at tlieguing Federal rule of interest.

lcasing or acquisition of such project by a third party in any n. and. Pr* ''led.il in. loanx. or lease anyreal property (except luu-Fentr'ioiiHiii. financial interest oj the I'cdf. upoj. the disposition of which.ich loans for the purposes-of this Act.such leasing or acquisition) plus 2 per ceniutn per aniuini or to (leclnru the unpaid principal on said loan due forthwith.agreements. and that the otliur purposes.shall not deprive any Stale or . as it deems desin-blc.property. in the cvjnt ol tho. . (d) The Authority may procrrc insurance against any loss in connection with __ ita pj_yperty and other-assets (including mortgages. amount of aiiiuial c.\ci. it is hereby provided that— (j) When a loan is made pursuant to section 9 for a low-rcnt-housing project' the Authority may reti.W promote iro'noniy ui lii in tin. security. or any other term. however. r^spictit'cli/. insofar as any rstich jurisdiction may have been taken away or any such rights impaired by reason of the acquisition of any property transferred t < the.ral Government./iiiscilinfl emit/net. When the Au'thorilij finds lliat. in the event of a substantial breach of the Condition (which shall be cinbotlicd in the loan. and sell or exchange any securities or ubligatii'iis.t mortgage 01 oilier lien 1'old by a third party. SKI. >nrc fixed shall mean the going Federal'rate. such.mat/. of-the revenues to t j derived tliercfr.-dispose of. 11. and may use the proceeds of . on the dole of" Presidential approtal of such amending or . fe) The Authority may sell or exchange at public or private sale.in the right. of any contractor agreement of any kind to wliicli the Authority is a party or \\1i. contracts for annual contributions. The amount so paid fpi any year uj>on any such .political subdivision thereof of its civil and criminal jurisdiction in. lv the limitations e'scichcrc in this Act governing •tlieir-admihistratwit and disposition. leases. of this Act willbc achieved.ereb> fiilly restored.ii proper! \ if it were not exemptJroin.ibitants on .•.-. or impair the civil'r^hU under • the State or local Ia\v of the inl. The Authority may borrow on.uhiicr including a bona fide foreclosure under . to increase-1 lie interest payablr thereafter on the balance of said loan then held by the Authority to a laio not in excess of the going Federal rate (at. real property owned by. . and other aisc deal with.axes that would bc. by a third partyill any manner including a buna fide foreclosure under a mortgage < r other lien held by a third party. in. .taxatioirthercby. mid in sueh event (lie Authority may complete./ outstanding obligations of the .70 HOUSING ACT OF 1949 (ton.dt.aiiiounis. ^ amended or superseded lij a . Subject tu ihe specific limitations or standards in this Act go\crning the terms of sail-?. In order to insure that the low-rent character of housing project^ will be preser\ud.. J5.ich has been transftrred. ineiptd of and intcrrjit on any-obligations issued. and fr«<in such-usurers.to it pursuai.paid to the State or siibdiv ision.. pay tic-p.-rentals.t/nribntion. it necessary or de.siich property.. or both.-irable in the fulfillment of the purport. guing fideral rate o i the basis of which fiuh tiinitial contributions or interest rate on the loans. and over such property. such jurisdiction ami such rights arc l. "-1 SKC. (c) The Authority may enter into agreements to pay annual' sums in lieu of taxes to any State or political nubdivision thereof with respect-to any.ntra<l of the Authority sothut the.n pledged.^ (b) The acquisition by the Authority of any real property pursuant to this Act . with Prtaidcnlial approval. That contracts may not be amended or superseded in a manner which (COiiW impaii the rights <. any conduct heretofore or At -aftci made for annual contributions. contracts-for capital grants..of this Act.the security •* i any real or personal property o\i net' by it. iii-ciicli. or other . whcimcr it deems. the Authority shall retain the right.. (2) When a loan is made pursuant to section 9 for a slum-clearance project.-the Authority.. projects.public housing agency involved for which annual <u/ifr''ii</ionc hiive bcr.i to this ..\ incut of any installment of principal or interest.aM|iiisi(ion) plus 2 per Centuin jicr annum or to declare the unpaid principal o i said loan due forthwith. administer.. the limo of .finc<l. upon such terms as it may fix. wit h i\>pcu tu-rate of inttrcst. fttbjcct. stii. Aiiy rule of law contrary to this provision shall be deemed inapplicable. or on:t he security .is governed elsewhere in this Act) ur-pcrsonal . to increase the interest pay able thereafter on tht balance of said loan then held by I ho Authority t^ a rate not in excess of the . or both. time of pa. consent to the modification. the Authority may./ the holders of an.property shall Hot exceed tin .agreement) providing for the maintenance of the lou-runt charactcrof the housing [iroject imohed or in the e\cnt of the acquisition of such project. . loans. as thacasc may be.. in connection with such project. or capital [grants pursuant to section 11] grant. projects or parts-thereof.going Federal rate (at the lime of such breitch ur.. as herein. Authority pursuant to section 4 (d).

grants.bhtract for~a:substantial loan limy contain'a condition requiring the maintenance of'an. under the legal building requirements applicable to the proposed site.o00 [per fainily dwelling unit or not to exceed SI. and aiinii.contract -may .c Authority sliahi retain tlip-right. 1949. That any snch'0.cd to make capital grants. such proportion of the total development cost of the project an the amount of the average actual cost per family duelling unit of the items covered by the applicable cost limitation:! prescribed in niihscotiuii (5) of this section in e. opcn> space or playground in .oridcd. upon cowl (ion H. to reduce or terminate thr annual contributions.]: any such . That' the amount.project involved.cosljor construction ami "[hereafter . shall have.. loans. public housing agency.embodied in such contract) pro\ iding for the maintenance of the lojv-n-ht character of the housing . . than [SJ. or cause to be paid by the Stacc or political Mibdmbion.abiliiii. to a'1.f-siic. other covenants. In the event of the acqiiisitio. or of any other section of this Act. sale. (G) Notwithstanding the provisions of subsection (o) of this section.initiated costing] equipment of not to.cd by this Act arc calculated.into by the Authority with respect to • anj low-rent huiisiiig proji-ct [hereafter initiated costing] complcteil tifler _ January J. he may prescribe in such conlrt-ci •. and nondwclling facilities): [if in the opinion of the Authority surh higher family dwelling unit cost or cost per room is justified by reason of higher cosU of labor-and materials and other construction costs:] Provide!.3 . necessary by the Authority for the safety or health of children. loans.'iS. having at cost for construction and equipment oMnori.<. demolition.it. or provisions-aa it. involved: Prowled.the liinita.000] $1^50 per rooin (excluding land. of capital grant ivmde pursuant to this Act shall ib"e entered . [With respect to housing projects on. and (if) Mart. at the request (.-s thereof bcaro to .n of Mich project by.^Ksign. such animal contributions shall terminate.HOUSING ACT OF 1949 - 71 (3) When a contract fur animal contributions is made pursuant to section 10..OOQ per family duolliig unit or more than §1..such a\ cinge ai tunl cost: Pr..capital grants. or annual contributions by . and economy will be promoted both in coiioiruction and administration. leesc. (-1) The Authority-ma. except that in the case of ....«/rti. [and (b) that the a\erage construction cost of the dwelling uniU (excluding land.\laska [any city. tli./n«/-design or materials. soccifiailly approved the amount of such wain construction contract.\peiisi\c]. also insert in any contract for loans. taking into account the level of construction cosjs prevailing in the locality where such project is to be located. or annual contrib.mi amount of any capital grants.. (5) No contract for any sloan. The receipt of capital.'such agency./ low-rent housing project initiated after March J. in the locality or metropolitan area concerned. shall proridc that no award of the. nery contract for financial nxsislancc entered into with respect to an. the Authority Is authori/. and npiidwclling facili'Jcs). having a. main construction contract for such . annual contribution.t. involved if deemed.lit. JO. and under labor standards not lowcr-thnn those prescribed in this Act.] In order to attain the foregoing objciticc.iiiy public-housing agency pursuant (o this 47.250] per room (excluding land. inay.:i: acute need for such housing. the] The Authority . exceed:[$5.connection with the housing project. and nondwclling facilities) in any such project is not greater than the average construction cost ot duelling in its currently produced by private enterprise.h agency.000] £?.\cc. demolition. That if the Administrator finds thai in the geographical area of any project (i) it is not feasible under the aforesaid cost limitations to construct the prt.iojccl shall be made unless the Aiilhorili/.000. such. in thc-cvunt of a substantial:breach of the condition "(\v]iicIjv»liaH be.usLlimilalions which may ejected bij not more lha» $730 per room . loans.shall make loans..be entenid into with respect. or any other agreement -or instrument made pursti. or annual contribution:) for luu-rent-housing or sunn-clearance projects. to a project. payable under such contract. ihe population of which exceeds 500.jcct without sacrifice of sound standards of con•alruction..'ions-thal icould otherwise lie applicable to such project hcrcnndcr.-.dceii iiecessary in order to insure the low-rent character 1 of th? housing project. of any sums previously allocated pursuant to this \ct. grants.['a)] that such projects will-not be of elaborate ur-[c. of any such pay incut shall be excluded from Hie base on which the maxim.y manner including a bpna fide foreclosure-under a mortgage or •other-lien held-by a tliifd party. it to this Act.cond:tioiis.aniL.il contributions only for sucli low-rent hoiiMng projects as it fiiuls arc to be under taken in sucli a manner .itions authori/.a third party in ac. will pay. is. demolition.\i Inch construction is hereafter initialed. in the full amount. mortgage. annual contributions.

(i) unless-thc governing-body of'the locality invoiced has by resolution approved the application of the public housing agcncy-for siich. in selecting families for admission to such dwellings. That the requirement in-(it) shall not be applicable in the rase of the family of any veteran or serviceman (or of any deceased ufcnin or serviceman) where application for admission to such housing is made not later than five years after March t.mijig to meet needs not being adequately /»•' by private enterprise— (a) the Authority shall hot make any coriirticl with a public housing agincy.prcliininury /pan. oh the basis of'the report fifsaid investigation. iM a duly authorised official of the . not exceeding the maximum income limits thcrcloforcfircd by the pi/Wi'c housing agency (and approved by the Authority) for admission offamilica of low income to such housing. thai such iiitix-i in inn income limits and'all revisions thereof-shairbe subject to the priof approval of the Authority.-safe. make such revisions necessary in achieving the purposes of this Act. c. 10^0. shall nive due consideration to the urgency of the families' housing needs. satisfaction of-the Authority^ that there «:a need for such lore-rent housing.i. or overcrowded dwelling. or would prefer to delay the starting of their proposi-d building" -operations until labor and-material costs stabilize at level:. and (it) unlcss-thc publi" housing agency has-dcmoiistralcd to the satisfaction of-thc Authority that a gap hf at least SO per centum-has bctn left between the upper rental limits for admission to the prnpgscd lfiic~rt.gcncy providing for the loral cooperation required by the Authority pursuant to this Act.subsection (5) cf4his_ section. private enterprise. public.for preliminary loans (alLof which shall.public housing agency involved shall ."glits or privileges of such agency to participate fully in other luw-rcnt-housing or slum-clearance projects under . (8) Every contract made pursuant to this Act for annual contributions for any low-rent housing project initialed after March 1.cntercd into ah agrecmciit with the public housing.19/. and (it) lived in an unsifc. and th<it the Authority may require the.9. eligible for admission to such housing. 1040. insanitary. (7) In recognition that there should be local determination of the nfcd for ' hip-rent ho'. • j (6) the Authority shall not wake any contract'for loans (other than preliminary loans) or for annual contributions pursuant to this Act with respect .occupancy of. due to cause-? other than the fault of the tenant: Provided.families in such housing'. (i) unless the governing iof/i/. and .this Act or any other law.providing (through new construction and available existing structures) a substantial supply of decent. Nothing in (his subsection snail prejudice the right of those "public-housing agencies which cari.Authority determines that changed conditions in the locality.involved) for surveys and -planning in respect to any low-rent housing projects initiated after March I.o/ihe-locality involved has. and 474 . . or was aboyt to be without housing as a result of a court. order of eviction.g the period covered thereby.ii) no way prejudice or impair t'u .nt housing and the lowest rents at ithir-h private enterprise unaided by public subsidy. iir arlnally was without housing. otherwise.is. (r) in the selection of tenants (i) the public housing agency shall not discriminate against families. lO.'iQ.be repaid out of any moneys which become available to-such agency for the development of the projects . he has found that sach such Jamil]! at the time of-ils admission (i) had a net family income. and'sanitary housing toward meeting the need of an adequate volume thereof. by reason of lesser need.•72 HOUSING ACT 'OF 1949 subsection shnll. because-Ihcir incomes arc derived in whole or in part from public assistance. and that. . and (if) in initially selecting families for admission to dwellings of given sites and at specified rents the public housing agency shall (subject .to the preferences prescribed in subsection 10 (g) of this Act) give preference tofamilies'having. shell provide that— (a) Me public-housing agency shall fix maximum income limits for the admission and for the continual. which is not being ma by. or was t<> be displaced by another low-rent housing project or bif a public slum-clearance or redevelopment project. and thfnnftcr.consistent with the cost limitations presented in.the periodic-written statements to the Authority that an investigation has been made of each family admitted to the low-rent nousing project involved (lur.thf most urgent housing need. housing agency to review and to revise such maximum -income limits jf the.to any lowrrent housing project initiated after March 1. and (it) unless the public housing agency has demonstrated to-ihe.

technical engineers. or for any Teriitorj. sees. Scerelnry 01 LaLur. Supp. such projcus may. 17.. \\huluur in part uith funds made a\ailablc ]>ursuant to this Aut.~ be treated collectively (is oncyrojccl. for anyof^thc purposes of this Act and. or repair of said public buildings or public work" (U. or payments. as amended (37 Stat.nol limited to. both. draftsmen. title 40.by the Authority) for continued -. and for other purposes" (39 Stat. or for the District of Columbia. alteration.\ . and for other purpose ". . 10. and the Authority • my rcqui. 27Cb ami 27Gc). annual contributions. in Jicu of taxes._relatii)g to the rate of wages for laborers and mechanics cmplo\ed bv contractor^ and subcontractors on public buiMings" (49 Stat.. thai the net incomes of any such families havf:incrcascd beyond the maximum income limits. spccijied. which shall bo subscribed by tlu United State* and paid b\ the Secrelarj uf thu Treasury out of 475 .>nore projects.w United States suffering injuries \\hilc in the purfunnancc of their duties. 270a to 270(1.il is found.in such contract). That suits shall be brought in the name of the . in the event such-contract COJICK tuo^or. 1935.' the 'joan. S.ork done for the United Stat s.connection with the development and administration of jpcdcral projects. laborers.OF 19.000. shall apply to contracts in connection with the development or administration of' Federal projects and the furnishing of materials and labor for ich-projects: ProruLd. SKC. and of the Act of August 24. and section 3 of the Act of August 24. iiiclushe). and shall cause all subcontractors to. 712). 1011). int6_by.• .•(8) Any contract for loans or annual coiilt Millions. „ " HOUSING ACT. upon such reeramination..of sitcliC'/nlracl (including. on forms to be furnished by the United States Department of Labor).ied. II.families-shall be required to move from t h e project. aiul employees of the Authority. shall apply to contracti of the Authority for work in. 193J. 137). C.. sees. the total man-hours uorkud. as to the number of persons on tla-ir ii'specli\c pay rolls on the particular project. (5) The provisions of sections 1 and 2 of the Act of June 13.report in like manner (within five da). as determined or adopted (subsequent-to a determination mider applicable State or local law) by the Authority^ shall be paid to all architects. Lut.< after (he close of each calendar month. and mechanics employed in the development or administration of the loyv-rr:it housing or slum-clearance projcctjn\olved. the public housing agency (and approval . S. ' .order to protect labor standards— (1) The provisions of the Act of August 30. .49 ~ ' 7o (</) the public housing agtncy^shall make periodic reetaminations of the rid incomes of tenant families living in the low-rent housing project invoiced. housing-project o • <icd by said-piiblif housing-agency. technicians. capital grants.. 1934 edition. and itemized cNpcnditurcs for materials.houting agency. (2) Any contract for loans. occupancy^in such housing. 1935.the Authority ic. 1935.VCIAL rilOVISIOXS - SKC. alteration. the Jilcrminaiio" nf the amount c. Any such-Contractor shall furnish to tliu Department of Labor the names rind addresses of all subcontractors on the work at the earliest (Into practicable. fixed by. In. and repair of any public building or public \\ork of the United States to be accoinpai.000. 1935. entitled "An Act to Amend-the Act approved March 3. The Authority shall have a capital stock of $1. shall extend to officers . C. . _ •. sale. 1934 (U. may cover one or more than onjf loin-rent _.limiting tile hours of daily scrvi :es of laborers and mechanics employed upon \v.by. title 10.a perforiimnce-bond protecting the United Stntcs-anil-by an additional bond for the protection of persons furnishing material and labor for the construction. u.entitled "An Act requiring contracts for the construction.uthorijty and that the Authority shall itself perform the duties prescribed by section 3 (a) of the Act of August 30."!A ii_piiblic.c certification as to compliance w i t h the provisions of this paragraph prior to making any payment under such-contract. (1) The benefits of the Act entitled "An Act to provide compensation for employees of C. FIN'A. (0) Any contractor engaged on any project financed in whole or in part with Ximds made a\ailable pursuant to this Act shall report monthly to the . or lease pursuant to this Act shall contain a-provision requiring that not less than the wages or fees prevailing in the localitj. and if. entered. shall apply to any low-rent housing or slum clearance project financed ii.. such . (3) The Act entitled "An Act. 1934 edition. the aggregate amount of such pa> rolls. aniitial contributions.

lionsfor •/iiirchasc by /. iitilizint.\«<hvri.'bbth as to principal and interest. 20..itwns sit til IK in such forms an * iniimilionf.500. and the inirp.ir whit 'i sccmi'ics in ty be. '«s amended. exclusive of an* obligations which may l>c issued for rcfinming purposes. and the purposes for whicli securv'ics may be issued under such Act.radon tht.-. purchases. shall haw such mnturt!it-. municipality. To the extent of such payment the Secretary of the Treasury shall succeed to all the rights of the holder. The .iiPJrest hot exceeding 4 per centum*per annum. L'niled StaUs us of tin. in .l average rate on outstanding marketable obligations of th<. 1938. as amended.000.' and all receipts and assets of the Authority. Such italic oi-ulher alligations shaK-fa..000. SKI. sell any of the notes or other obligations acquired by him under this section. shall be available for the purposes of tlib Act until expcndf'. and public funds the in\cstment or deposit of which shall be under the authority or control of the United States or an* officer or agcnr* thereof. and be issued in such manner and sold at such prices as ma* be prescribed by the Authority with the approval of the Secretary of the Treasury. Receipts for such payment. from all taxation except surtaxes. SKC.as to the payment. £(.iemfcd.000. and sales b* liim of such obligations shall be treated as public-debt transactions of the United-States. 21.nrrci. out of any money iiv the Treasury not otherwise appropriated. county. trust.. arc.sc . last day of the month preceding Ihc issuance of the notes or other obligations by the Authority. as a'. shall be issued to the Secretary of "the Treasury b* the Authority anil ahull e\idcnce the-stock ownership of the United States of America. the sum of 826. acquired by him pursuant to this section..000. which it may sell to obtain funds for the purposes of this Act. till the facilities of the Treasury Department now authorized b. The Secretary . estate.«) Such obligations may be marketed for the Authority at its. lid) Such obligations shall be lawful investments and ma* be accepted as security for all fiduciary. All rcdeiniilinns. $• jjcrl to such terms anil wititiliomi us maif be prescribed bu thr ..iditionally guaranteed upon their face by the United States.rt.and oilier ofc/. and gift taxes) how or hereafter imposed by the United States or by an* State. . i. extended to include any purchases of such obligations. and.any notes or other obligations of the Author!!'/ • iasued hcrcundtr and for such fiui jtose is authorized to use as <i i>ublic-ihbl transaction the i>roiccdsfrom the sale of any sccuriliis msiied under tin Second /.available under any Act of Congress for allocation. arc extended to include any sucb ^purchaserTile Secretary of the-Treasury ma* at any time sell any of'the obligations. Such obligations shall be in such forms and denominations.. be allocated to the Authority for the purposes of this Act. Any funds .V Sn. and all rcdcinptijii-. bear such rates of. The Authority may issue Midi obligations iivan amount not to.and shut) lit.nltrist at a .the discretion of the 1'rcMdciit.forvhuiising or slum clearance may. or otherwise.000 shall be available to'pa* the sub-* script ion to the capital stock of the Authority. mature within such periods not exceeding sixty years from .. There is hereby authorized to be appropriated.. |(c) The Authority is authorized to issue obligations in the form of note*.000 for the fiscal 1 year ending'June 30.rctiucst b* the SccruUi'ry of the Tjcasury.ng.tary of Hie T't -isunj m an amount not to exceed $1.000. lie) Such obligations shall be full* aiid uiicu. Such suhi.the snip of any—i*ruriti(a> hereafter issued iiiiJcf the Second Liberty liv-nct Act. purchases. SKC.Secretary of the Treasury in likewise* authorized to purchase any such obligations.thr n ^roval of the Secretary of'the Trcaxury. rt* amended.»f obligations of the United States.payments shall be made to the holder by the Secretary of the Treasury with money hereby authorized to be appropriated for such purpose oiit of any mono* in the Trcasur* not otherwise appropriated. of \\hich 81. SKC. and sales by the Secretary of^the Treasury of smh Milts or other obligations shall be treated as niiblic-debilransacliojut of Ihc United Stales.iberty Itolid Act.74 HOUSING ACT OF 1949 any u*aijablc funds.. or local taxii g authority. Authority may i^suc and have.exceed' 8800. of the Treasury may at any time. Secretary of (lie Trcaxury is authorized and directed to //«r</m.000. of both interest and principal. and fur such purchases he ma* use as a public-debt transaction the proceeds from.ale <lclcrininc<l lt>i the Secretary of the TruiKurif. t. subject to check. with the Treasurer of the United" States or in'any 476 .* Vaw for the inarkct.iscsf. ng al any one lime notiA. bond.:>.. in the event that the Authority shall be unable to make an* such payment upon demand **Iicn due. The."u.date of issue.] The. Such notes 01 -other ollin'.. oiilstand.nsucd under such Act. IS.(litions. (n) Any monoy of the Authority not otherwise employed may btr deposited. 19. inheritance. tahing into ioH»iJt.. Lib) £Voh obligations shall be exempt. be subject to such terms and ci. Hli.

of principal and interest on the oMiynliniiS for which the annual contributions provided for in the contract shall' have been pledged as sccnrili/: Provided. deliveries and rcdelncrics of possession shall not exhaust thc-righl-lo require a conveyance or delivery of possession of the project to the Authority pursuant. and to maintain the loie-rcnt character of hoiising. wiil suffice for the . the determination of the Authority (which determination shall be final.'«l property 477 . as may be agreed upon. in order to fulfill the purposes of this Act. from customs: (d) Not more than 10 per centum of the [funds provided for in this Act. in financing^ lota-rent housing projects. and the Authority may reimburse any such bank for its services in such manner. (2) the Authority shall be obligated to reconccy or to redcliwr possession of the project.HOUSING ACT OF 19-19 75 Federal Pescrvc bank. to sui* public housing agency or to Us successor (if such public housing agcnc. PRIVATE FIXAXCIXG SEC. and conclusive).When designated by the Secretary of the Treasury. to which such contract.tl the time of. either to convey title in any case where. and may covenant in such contract (in hen of the provision required by the first senUncc of subsection 15 (S) of this. the Authority shall be a depository of public money. determines arc in accordance with subsection (a) hereof.. in.y or a successor exists) upon such terms as shall be prescribed in such contract and as soon as practicable: (!) after the Authority shall be satisfied that all defaults leith respect to the project have been cured. 32 To facilitate the enlistment of prhatr capital through the s'-Jc by public housing agencies of their bonds and other obligations to others than-the Authority. upon the subsequent occurrence of. relates. grant. falling due within the next succeeding twelve months. or to deliver -possession to the Authority of the project. Act) thai in any event such annual contributions shall in each year be at least a/nal to an amount which. or conversion or to the improper handling. custodians.convcyances and reconveyances.paymcnt'of all installments. reconveyance or rcdcfivery. tind in no case shall such annual contributions be in arccsx of the maximum sum specified in the contract involved. and fiscal agents for the Authority in the general exercise of its •powers.in obligations of the United States or used iii tlie purchase or retirement or redemption of any obligations issued by the Authority. .the option of the Authority. nor more than 10 per centum of the amounts provided for in this Act for grants. or may be invested. (l») The Federal Reserve banks are authorized and directed to act as depositories. together with such income or other funds as arc actually acailablc from the project for the purpose ' the lime such annual contribution is made. as then constituted. have been pledged by the public housing agency as security for the payment of the principal and interest on nny of its obligations} (Ac Authority (notwithstanding any other provisions of this Act) shall continue to make annual contributions available for the project so long as any of such obligations-remain outstanding. [22J 25. and the annual contribution!. nor for longer than the remainder of the maximum period fixed by the contract. in said contract. (c) The Authority may be employed as a financial agent of the Government. All general peril statutes relating to :ho larceny. the public housing agency shall be obligated at. for annual contributions (including contracts which (intend or supersede contracts previously made) may provide that— (1) upon the occurrence of a substantial default in respect to the covenants or conditions to which the public housing agency is subject (as such substantial default shall be defined in such contract).embezzlement. such conveyance of title is necessary to achieve the purposes of this Act. cither in the form of a loan. as conftilutcd . or animal contribution.TIKS SKC-. and subject to such regulations -as he may prescribe.. (b) Whenever such contract for annual contributions shall include provisions which the Authority. except receipts. or (ii) nfler the termination of the obligation to make annual contributions available unless there arc any obligations or covenants of the public housing agency to the Authority which are then in default. Any prior. ahall be expended within any one State. thereafter^ be operated in accordance with the tcrnis of such contract. rotcntirn. and that the project will. PENAI.] total annual amount of $4~8>000000 provided in this Act for annual contributions. pursuant to such contract. '. use or disposal of public moneys or property of tho'United Slates shall npply'to the moneys i. 'That such annual contributions shall not be in excess of the maximum sum determine*! pursuant to'thc provision* of this Act. a substantial default.'to subriaragraph (1).projecis— (a) Every contract. .

24 of this tltlo. appp icd June 29. be fined he! more than $1. which he has in such property or in the property to which such contract relates. legal or cquitablo.<i Out "Sl. upon conviction thereof.of securities or stuck. No individual. SKC.0 arc . 2035). cillllnm.1 To e.or an\ officer or employee of the United States.of such contract. The President is hereby authorized to make available -to the Alley Dwelling Authority.hc same liniliaiions anil c. Numbered 837. SE_C. £2-1] 25. and for the account of. 103G (49 Stat.. be fined hot more than 81. Seventy-third Congress).defraud the Authority or to deceive any directcr.iWc In the fsvsc of national tanks under pantiraph 'Sovcnth' of sec. Any person who shall receive any compensation. or any combination of these four words.000 or im-prisoncd for not inor&.y provision of this Act. with intent to. and iii.000. 21 of tUlc 12 ol (lie 1'nllcil SlnlcJ Ccxlo (lOir. SKC.-e fur its o\\u account. customers. shall. shall. ot-botli.unlawfully. is held invalid..thereof. as the name or part thereof. upon convictioivthcieof. ProtitM.lr. Such-sums shall be deposited in the Conversion of "hlmbited Mlcys Funds and thereafter shall remain immediately available for he purposts of the District of Columbia Mley Dwelling Act. Any such use shall constitute a misdemeanor and shall be puniahaoi" bv a. or any other Act of the United States dealing with housing or slum clearance.u>i. M. any issue. approved June 12. SKC.T centum of Us capital stock act nail j paid in and unimpaired and 10'pcr centum of its uninv paired surplus.*partnership. or the.-sociation may purchase for itn o\\n account in\esltii"iit securities under such limitations and restrictions as the Comptroller of the Currency may 1>\ regulation prescril>c. The business of dealing in securities-and flock by the asocial ion .ward. or other order thereunder.000 or impri-uhcd for not more than one year. [29] SO. or corporation shall use the words ''United States Housing Authority". § ol30. or both.tlc mcmtxr linnks (of tlic Fcilctn) Itwrvc Sy»Icm| . iindrrwrltlnif. solllnc. Any person who induces or irilKences the Authority to purchase or acquire any property or to enter into any contract and willfully fails to disclose any interest. solely upon the order. regulation. 2025). subject to Ia\\. or the. collusion. exceed at any time 10 JX. from any funds appropriated or otherwise provided to carry out the purposes of this Act. and holding of Investment MCUTIIK • ind stock 0. the remainder of this Act. it is hereby declared to be the" controlling-intent of Congress-that if ar.76 HOUSING ACT OF 1940 of-the Authority and to moneys and properties of the United States entrusted to the Authority.not more than 81. [25] 26.See.$.no ca.ihall bu limit •<! to purchasing and selling such securities and stock \\illiout recourse.xsary to carry on the business of banking * * *.Vt at llic Hcvlurd Slnliurs) l> In ttc. upon conviction thereof. express or implied. or employee. .000. 1936 (49 Slat.millilons nllh rrjffcl to »lio Imrcliajlns. * * * a national banking association * * * shall have •power— * * * * * * * Seventh. such sums as-he deems necessary to carry out the purposes of the District of Columbia Alley Dwelling Act. application thereof to any person or circumstance. makes any false entry in anv book of the Authority or makes any false report or statement to" or for the Authority shall. [23] 2. 1934 (Public.. U. or re. or shall enter into any con-piracy. under which he or it shall do business.application of such provision to persons or circumstances other than those as to which it is held invalid.\erci«c by its board of directors or d«l. and the association shall not underwrite.ihnll bosohjrcl to." 478 . -tW o( iho Sinic llilc |iro\nlr.S. rebate.'oificer. or both. or any Executive ord_er. THE NATIONAL BAXK ACT . [26] 27. shall not be affected thereby. SKC. all Mich incidental powers ns shrill be ncce. That the n. SKC. this Act may be cited as tbe ''United States Housing Act of 1937". Except as hereinafter provided or otherwise > This provision (sec. with intent to defraud thO Authority or with intent. SEC. SKC. the provisions of fhis Act shall prevail.than one year.\ authorized officer* or agent*. Public. to defeat its purposes. or any special benefit which he expects to receive as a result.• bc'fincd. or agreement. In no event -tlmll lliu tola! amount of the ii>\ eminent securities of any one obligor or maker.or imprisoned for not more than one year. [27] 2$. Wherever the application of the provisions of this Act conflicts with the application of the provisions of Public. fine not cxcccdinK $1. Notwithstanding any other evidences of the intention of Congress. [30] 31. Any person who. Numbered .845. approved Juno 29. held by the association fur its own account. Numbered 307. [28] 20. association. fund * * *.

and the Administrator or Administration agrees to. investment securities shall hot apply to obligations of the United States. housing agency.-S. to maturity thereon.which \tqgelhtr with any other moneys irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon. copartnership. Tlio term "obligations" shall men i the direct liability of the maker or acceptor of paper discounted with or sold to such association and the liability Jf the indorscr. 479 . moneys in an amount which (together with any other. prior to the maturity of such obligations (which obligations shall hare a maturity of not more than eighteen months). * * * * * * * (//)* Obligations of a local public agency (as defined in section 110 (h) of the Housing Act of 1040) or of a public housing agency (as defined in th* I'nitcd Stales Housing Act of 1937. mortgage association. M of lfllaI2nf the Vnllrd SIMM CoOr. -Loan Act.of any local public "jrncy (ait defined in section-110 (h) of'-lhe Housing Act of ?949) as are securcdly an agreement between the local public agency and the. moneys irrcrocably committed to the payment of: interest on such obligations) icill suffice to pay the principal of'such obligations with interest. whid.usedfor the purpose of pa-'tng the principal of and the interest on such obligations at their maturity.rporat'jii all obligations of all subsidiaries thereof in which'such corporation owns c.purchase by the association for its own account of any shares of stock ui-aiiy corporation. agrees to borrow from the Public Housing Administration.:moneys in an amount. or obligations of national.lcnd to the agency. and Home Finance Administrator or the Public Housing Administration in which the agency agrees to borrow from the Administrator or Adminintralion. prior to the maturity of such obligations. § 5200. and if the maximum sum and the maximum period specified in such contract pursuant to said subsection 22 (b) shall not be less •than the annual amount and the period for payment which are requisite to provide for the payment when due of all installments of principal and interest on such obligations * '* *.be issued in payment of such insured obligations at • guaranteed as to principal and interest by the United States. moneys in an amnifhi which (together with any other moneys irrevocably committed ' ThbfliKvcllon v nit) I*-ftddn!to we. or obligations which arc insured by the Federal -Housing Administrator pursuant to section 207 of the National Housing Act if the debentures to.h is authorized by subsection (b) of section 23 of the United Slates Housing Act of 1937. drawer. or such obligations of a public housing agency (as defined in the Unitea States Housing Act of 1937. The total obligates to any national banking association1 of any person. as amended).lMf> trillion). nothing herein contained shall authorize the. as amended. any limitation. eighteen-months). or general obligations of any State or any political subdivision thereof. and taid Administrator agrees to lend to said local public agenty. if such obligations arc secured by^an agreement between Ihe obligor agency and the Housing. association. prior to the. Such limitation of 10 per centum shall be subject to the following exceptions.ith or sells paper under his guaranty to such association and shall include in thi case uf obligations of. maturity of such obligations (which obligations shall hate a maturity oj not more than. and the Public Housing.-> unimpaired surplus fund. ho time exccec 10 per centum of the amu/int of the capital stock of such association nctiuJ'v p^d in and uninipaired arid 10 per centum of it. unoofihc VicYl«il Statutes (we. as amende/!) which hare a maturity of not more than eighteen months shall not be subject under this section to. controls a majority interest. as amended. * * . or such obligations. or guarantor who obtains a loan from or discounts paper -. or obligations issued under authority of the Federal Farm. TIic limitations and restrictions herein contained a» to dealing in. wneys under the terms of said agreement are reijiiircd to be. Administration agrees to lend to the public housing agency.as are secured either (1) by an agreement between the public housing agency and the Public Housing . or issued by the Federal Home Loan Banks or the Home "Owners' Loan Coloration.Administration in which the public.HOUSING ACT OF 1940 77 permitted by la\v. underwriting and purchasing for its own account. or corpo'ration shall at. * * -* * * R. Housing and Ihmc Finance Administrator in which the local public agency agreei to borrow from said Administrator.a copartnership or association the obligations of the scvVal members thereof and shall include in the case of obligations of a ci. or (£) by a pledge of-annual contributions under an annual contributions cpiitract between such public housing agency and Ihe Public Housing Administration if such contract shall contain the covenant by the Public Housing Administration ichi<. which moneys under the terms of said agreement are required to-be used for the purpose of paying the principal of and the interest on such obligations at their maturity.

480 . and methods of production. of hoaxing. Administrative. at>d construction.iiinl>cr of officers and employees paid from such funds: * * *.demonstration.'J* * *. and nMhwh ichich icill pcnyil. and fiscal service.j^cinbly of homc-buildiiit.?• and sustained fftxliiclior. ' Till* |>ro\v<o wouM !w r/>nmlcil n« of July 1.J * * * * * * •*'" * TITLE * THE HOUSINT. Tlii.* runi.. assembly. -_ reductions in housing construction and innuiUnance cosh. t- » - . and concerned icith housing ceonot.i. COOKS HESKAKCII * * liousixa III —[ST/IXIIARDIZBD AX-> MATERIALS] SRC.program waif lit concerned icjth improved >'~' ". . and consjruition. [and] standardized dimensions and inctl." " — * * * * * TITLE TJ HOI-SI.] cqiiipmerJ. and stimulate C •. 'this proviso would IK-. Such .78 HOUSIXG ACT X)F 1949 to.ti OQ~_:_ housing market data.o'ls for tlii. principal of tuck obligation* tcllh interest to 'maturity.otc the acceptance and application of J con mlh the (levejopment. That. 194S _._ * TJIE GOVERNMENT CORPORATIONS APPROPRIAT'OX Acjj 1949 TITLE j -i- * * * * * . irhich money* under the terms of said agreement are required to be used for tfiqt purpctc. improved residential dcsig't. — * TITLE I * . materials.161*.ic iioi-jiNG ADJIIXISYRATZON Annual contributions: [* * * Provided ftrther.> nd. 1SI7.part of this appropriation shall be usc'd to i>ay any public luusng agency any contribution occasioned by . and higher grades shall not exceed 20 i>cr centum of the total r. «. That the number of officers and'employ ccs in classification grades 11 of-*. Housing and Home Finance Admin^trator [shall undertake] shall (a) iindcrliikf and comlnct a progrom trith raped to technical research and studies [tu duvclup and prun.payments in lieu of taxes in cxct>i of the amount specifiwi in the original contract between such apchcv and the VSiblic Housing Administration or .V: AND HOME FIVANCK AGENCY * * * » * » * Public Housing Administration: £* * * Provided. material? and [cquipniRiit. rcpcnlrtl n) nt Inly 1. iinistration then f.. That no .any contribution occasioned by payments in lieu of-tsxcs. THE GOVERNMENT CORPORATIONS ArrjRGrRi.*. building nt.in c-vvss of t><c amount spccifii-d In the original contract between such accncv and the *-"edtral Public Housing Authority: * * * .^nilnrSizcd t-uilding cudca and regulations and mcthudn for the inure iinifor. nr..l. ACT OK 1948 * * * Btu. and promotion of the acceptance and ap.*-. 'Ac payment of intention titeh obligations) will suffice to pa-i the.i. no jwrt of this ap^ propriation shall be used 10 pjiy any public homing agency . TUBUC HOUSING AUTIIO^ITT Annual contributions: [* * * Provided further.vnox: ACT.' ofnfw und improved'technique*. distribution. 301.tcriah and equipment.ic and improved tyjirj of housing components.ts prcdt-ccssor agencies: -*.hc clerical... and 4 of the professional service.* » * FEIIEKAI. ] » * * * '» * ---*.nixr.

All contracts made by the Administrator for technical research and studies authorized by this or any other Act shall contain-requirements making the results of such research or studies available to tht public through. (c) of the Housing Act of 1!). Xoticithstandingthe provisions of .HOUSING ACT OF 1949 79 ~ -and 'oumf techniques f?r tht testing thereof and for the. a* amended (SI U.the available facilities of oilier departments. than five fiscal' i/cnrs before being earned to the surplus fund and corcred-into ihc. 1874.«tance by the Public Housing Administration in the form of loans and annual 481 . in carrying out any research or studies authorized by this title. The Administrator shtll disseminate. to the fullest extent feasible. and make rccomnicridslions to. anil protide. such departments.be appropriated such sums as may l>e ncccs.and proreinent. 71S). and plans. together with such.v to carry out the" purposes of this title. other la\y. [. as amended.subdivision thereof [aiyl w i t h the oppress purpose indicated in the Stalc'lcgi. or such other means as the Administrator shall determine. * ' * • • • • * Thc-proposed Housing Act of 1949 would repeal section 503 o£ the Housing Act of 1948 and provide substitute language as section 506 of the Housing Act of 1949. other facicrs affecting the cost of housing. zoning and other lutes. if (n) a contract for State financial assistance for siHi project was entered into on or after January I. surreys. powers. aides. 303: There are hereby authorized to. the Uhiiinistrator . with respect to urban and rural nonfarm housing.ilation of converting the project to a project with Federal assistance (if and when sum Federal as>nstnncc becomes uvailabje).<ir. Contracts may be made by the Administrator for technical research and-studles authorized by this subsection for work-to continue not. the Administrator may exercise any of the powers rtslcd in him by tctlion 502. (6) Prepare and submit to the President and to the Congress estimates of national urban and rural nonfarm 'housing needs and reports wilJi respect to the progress briny tnade^toward meeting such needs. and correlate and-rccommend proposals for such eieculire action or Icg-'slation as may be necessary ur desirable for the furtherance of the national housing obj. credit. assignment-to the Government. SKC. where ret/rested and needed by the localities.S.'. duntind and supply.section a of the Act of Jime 20.]. other reports 01 information as miy be required of the Administrator by thc-Presidein or the Congress. the-functions. Treasury. Any low-rent or veterans' housing project undertaken or const rurte'l'iiTitier a program of a State or any political . land coils.. arailable for the collection of such data.ctire and policy established by this Act. along with surreys and plar^Jor housing.more ~ than four years from the date of any such contract.S. and duties vested in him byj In carrying out research and studies under this title. or educational •institution or oltier nonprofit agency or organization. and educational institutions and olhtr_ nonprofit organizations.>03J'o(W. tcchi'ieal at'rlce and guidance in the making of such studies. the results of such rcseare' and studies in SJich form as may be mosl lis\:ful to industry and to tkr. Tlic change in language is indicated below. and related technical-ana economic research. 302. shall appoint a Director to adminlsler under his general supervision the provisions of this title. finance and investment. and prior to Jannnry 1. and agencies with respect to such action as may be nceesaary and desirable to n wile t~ t. determination of adequate performance standard*. housing needs.<iling t&px and deficiencies in available housing data or in the facililiis. i>nd may relate to appraisal. and regulations «<i» they apply to housing. The Administrator is further authorised^ for the purposes of this title. independent establishments. independent establishments. and with respect to. (c) Encourage localities to make studies of their own housing needs and markets.-Iial! ut ilizv. general public. nolyvithstanding any. [and. (\t\ tlic ])Tojcct is or can become eligible for a*si. For the pur'pose of entering into contrarts with any State or local public agency or instrumentality.'. C. SKC.and without regard to the prorisionx of-39 United Slates •Cede 331b. [In the performance of. and agencies of the Federal {•overiiinciit-. and with agencies of State or local gotcrnmrnls. W. S. [19 JO] 1050. to undertake research and studies toopcratircly with industry and labor.and shall r6nf\ilt irith. dedication. urban land use and related community development. site planning and utilities. any unexpended balance* of appropriations j-roptrly obligated by contracting >rith an organization as provided in thts siiliscction may remain upon the books-of the Treasury for not more.] shall'he approved as a low-rent housing project under the terms of the United States Housing Act of 1037. and other housing market data. use. SKC.

to be loans to assist the development of the project. of the United States Housing Act of 1937. That loans inaae by the Public Housing Administra-* tion for the purpose of so converting .. as amended: -Provided. as ah.ended.80 :i HOUSING ACT OF 1049 contribution:) under the provision.the project-to a: project VvithrPcdcral uisistance shall be deemed. . and (c) the State or the public housing agency operating the project ill the State makes application to the Public Housing Administration for Federal assistance for the project under the tenns of the United States Housing Act of 1937. for the purposes of the provisions of section 9 and other sections of the United States Housing Act of 1937.

Out of a clear sky.that * * * persons arc living below decent levels in regard to sanitation and moral environment * * * A-low stan^i-d:of living. In 1938 the Administration boldly attempted to make an over-thecounter deal to purchase with United States Housing Authority funds the reelection of the incumbent Member of Congress from my district. those forces. The statement that "desirable tenants have gradually withdrawn from the aica until a low class of occupants have almost destroyed the livability of the structure. Some of them were poor and lacked facilities and conveniences that others enjoyed. . and it was generally known that I intended to run for Congress. this xight of franchise is impaired.of the survey wnrc.ch thf Constitution *evcr intended to bo used for any such purpose as this." As a physician I had occasion to personally know many of the families Hving'in them. Armed with the power of eminent domain. desirable tenants have gradually withdrawn from i'ie areas until a-low class of occupants have a. Willingly or not. it would never have become a subject for congressional consideration. wli.ited deal on picking up their daily newspaper and reading large headlines that Marion was to receive a million dollars for so-called slum clearance and housing. Meanwhile the Washington forces moved in and began their insidious woi". held out no hope to the power planners for more votes and greater political security. I made a study of the United States Housing Act and its operations and imparted my findings to the citizens of Marion. If the pending measure. has been continuing for many years. went into sections of Marion and staked off what they arbitrarily called slum areas.. The local d'jily carried the news: Slum survey of Marion filed with the State Boun.forms found in these areas. 81 4fe3 . Marion residents first learned about the:atterr . R. perform the duties of government.rabbing scheme. H.houses owned by the political authority are in the nature of things so completely beholden to it as to make them amenable to its dictation in respect of the selection of persons to. Political ownership of human shelter is the mark of the beast. Points brought out in discussing these data arc: Social diseases of varipvi.. without even a hint from anyone that anything like it was brewing. Among the comments -made ir> the introduction. Those who live in. I was thoroughly acquainted with flip sections designated "sknv areas. to anyone having even an-elementary understanding of Washington politics the proposition was sun clear. * * * and will without a doubt continue to the detriment of the city and community in gcii?r^i unless action is taken. I was serving as mayor of Marion.most destroyed the livability of he structures. 4009.< of propagandizing for public approval their vote-buying and power-f. the Eighth Ohio. Nothing can bo more communistic.hrcugh a handful of local hirelings. Of course." was not only a contemptible falsehood bu» also libelous in the highest degree. and guided only by their political interests.MINORITY REPORT .

as. had in Washington the willingness to earn a»x honest living "and the integrity that prevails in those sections in Marion Ohio. as appears in the Congressional Record of July 24 of tliat year. Maybe there were social diseases iu_ those areas. I \i as given to understand that the determination of the placing of these poiitica' liousing projects was no concern of any little mayor. The areas arc very sparsely occupied. "We just followed instructions from \\ashinglon. Ho said: In the fir. Th. That \yas a falsehood.cial diseases in those areas''. The promoters of the scheme deliberately ive out the impression that these houses arc built for the people . 55 percent of the families owned their homes free of debt.. to decide. There '? no such thing as crowding in any sense.s. I would to God that we. Such is not the case.it place.one there now.slum in Marion then and there is. " i I aitowcd in testimony given before the House Committee on Banking and Currency in 1939. acting through the State Housing Authority. and there are many dishonest and deceptive laws on them. because it so happened *hat I was president of the Marion City Board of Health at that time. their answer w. There was no. "When the persons who were responsible for this vicious conduct were driven by a self-respi cling and righteously indignant people into a position of defense. The upshot of it all was> no sale. n. of which H. and Florida. and i know that no one oil the board gave out any such information or was in a position to do so. that were designated by the Federal housing bureaucracy as slum areas. at one time president of the Detroit Housing Coinmi^ioii. find out that there were so.ir that they [tliu housing projects)'will nut bu runted to Mum rcniiluiila ur welfare clfciit*. But according to my experience syphilis and gonorrhea* were no more prevclaut in those parts than in the other sections of Marion.clo. page 13827.82 " HOUSING ACT OP 194.'R. Texas. Thomas Danahey.t is a falsehood of the first water. 4009 is ina'mly an extension. The tenants in these buildings \\ill be people \\illi definite Miiniinuni income^ and to be eligible to move in they must proxe that their income* art ntcad\. There seem» tu be an imprc^iun that the Mum residents are going to take over the building. of which the3" were not even aware when they made this slanderous'Attack.vine in slum areas and the poorest people generally.-. Marion was saved from oil'. The citizens of Mark n refused to sell their souls for a mess of political pottage. forthrightly and truly stated the facts. Washington is the only source from which such evil work as this can -come. Mr. the threat of communism that now so ominously stalks before us wculd not exist. is the most deceptive and dishonest piece of legislation on our statute books. it must he inndc. from data obtained from eight housing projects in New York. A\ hen questioned on. that point they replied that their information was given them by the local board of health." Of course. not to cxplam my opposition to the scheme but to be told that as mayor of Marioa I had no authority in the matter. I was hailed before the Ohio State Housing Board. of the worst political blights that ever struck any nation. That was a matter for the great United States Housing Authority.9 - g Qn the most populated street in one of the sections which were designated shun. TLf we had. How did UH> local stooges of the United States Housing Authority . the only such 484 . areas. The United States Housing Act of 1937.

/ . make the local housing authority a •^ ^ppdy corporate^and politic. and duties conferred upon officers of muni' awu corporations by the laws providing for si. * * * shall have the foliowing^powers in addition to others herein specifically granted: . lense. obtain.. exchange. that is '•^between the city and the United States Housing Authority* which is il *-.t it really amounted to on final analysis. information that I have been able to.eclioh 1078-34: .possessiori of the facts that so-called Federal low rent housing flilable only to persons of a substantial income. " .the municipal council. sell. tion 1078-34-A. it becomes. and arc hereby authorized. some even from the ' ~ J income third. chairman. exercising public and essential go\eminental functions. could not >ibly have been devised by anyone who b. bcqncsV. to purcTmse.a body arid politic" " over which the municipality loses much if of its authority.* .*tij To determine what areas constitute slum areas * * * and to prepare •"•$»ns for housing projects in suclvareab. or eminent domain. it would appear the situation is more unfavorable to the lower third income p nowtnan it was at that time. of Ohio General Code: . '• .t shall constitute." so thai it becomes a distinct and inde' Ijandent municipality or political subdivision within a municipality : .o a body bnth. philosophy could have done this. • l&sjgn. to exgrcisc and carry out all other powers.. mayor.V-»ciJuirc the same by gift. *efitered into between the city and the local housing authority. respectively * * * "itiM&thc members of the housing authority shall. v Practically all the State laws. there is more political gravy to be had from the housing JEj| group with a substantial income than there is from poorhouses. ^yiiocity agrees that. . — fter all.HOUSING ACT' OF 1940 T -> _ 8$ . although I requested the same from """" joiner local housing authorities. or .j'?. or uny interest therein.ch appropriation proceedings. following agreement was . The arrangement definitely so planned. ills generally knov/n by n. In fact. the local. • "^spirporate and politic. that only about 17 percent of families eligible for occupying the dwellings in those projects olilie lower third income group. In subce they are all substantially alike and must have been written lio same hand.t jTiuler the United States Rousing Act the. The Illinois law specifically provides— • J. real or ]>crsonnl. . or mortgage any properly. and solicitor. rvfhe United States Housing Act of 1937. transfer. housing authority is established.- dot ^ that I was able to obtain.clicves in the American lition of freedom.{'An authority shall be a municipal corporation and shall constitu. i of any part of the sile or •files for each project and continuing throughout tho 485 . TA'n authority created under this .i 63f a political subdivision. during the period commencing with i!ic date of . ake a look at the State laws pertaining to the subject. and nearly all of them were tHe uppermost part of that group. and counsel of the housing authority shall perform of. Only alien-minded persons who adhere to tho rxian. together with the several |ttc laws creating so-called local housing authorities. and that it is itejy not available to the really poor people. rc than 80 percent of the families living in the above-indicated njrojects were from the middle income third. a body corporate and -'politic.

provided by it for the use and benefit ot each project the tenants thereof.000 or approximately one-third of all the dwelling n in the United States. street maintenc snow removal. is the ultima ratio. in the municipalities wli they are located aud simulate in a. it will not levj. the many so-called 1 rent housing projects already scattered over the Nation and m other political housing that has been and is being constructed. garbage. in the city. Consider the cnormi part the political authority plays in the financing of the construe of new homes and the. The passage of. these are tantamount to the s. for the sustcntatio communism. 4009~should 'be—"A uai to further enslave I people of the United States. Measured b> tVis yardstick it will be t>ecn that this native Ian ours is already far down the road of Marxism. 4009 will be a capital political victory over economic life. public streets within any project and on the boundaries thereof. roads.power it has over such construction und o the disposition of such homes. alleys which are within. about 14. R. * * * survice fees. against the authority. charges. or charge-any tax< assessments. 486 . street lightin. streets. or lea'd'iig to the boundaries of. ! The title of H. through rent control. and sewer scryil that it will maintain in good repair and working order any and all inunii' utilities and facilities.-. or tolls against the p r < . thing. and v. of the Xation. Political ownership or control.. \\itliuiit cost or charge to the autfi the tenants thereof. of the same character as those furnished without cost oJ?<ehi.the power it has over rental dwelli. police. • V*V * V AW J'«A1V tfc«. Russj style. R. for other dwellings and inhabitant. and that it will maintain in good repair.each projeci Thus it will be seen that so-called Federal low-rent housing proj are foreign bodies. SMITH] IfA&V. marked degree cancerous grow in the human organism. including but not limited'. of houses and their disposition. adjacent. Communist plants. a sweeping advance on the part of power planners towarI their goal of-complete regimentation. . municipal sci vices and facilities for such project'jind tenants thereof. impose. and health protection and services.II. WA VV/A A »»* A I* A 11OX1A. and ash collection and disposal.000." FREDERICK C. etc. * * * fire.84 HOUSING ACT OF 1949 useful life of such project. . **1 <M o . the clinching force.ill furnish. The extent of the development of communism in eountiy cau be measured by by determining tlip amount of polity control that is exercised over >ver te the provisioning provsionng 01 tbe matcrii financing constructions. traah.

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