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

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

3 and 6. Page 78. 20 and 23 and pa^a 75. Page 54. convenient.. as amended. strike out "the State or" wl ere such appears therein. the benefits provided by titles 1 and II of this Act. and 22 thereof as sections 21. or desirable for such purposes. immediately following line 8 insert the following new sections. strike put "moneys" where such appears in each place therein and in each instance insert in lieu thereof "monies".imbufse their appropriation for the cost of such studies or surveys. 508. "(b) Subject to the approval of the District Commissioners. li»:^ 2. 30. loans. the District of Columbia Redevelopment Act of 1945.is hereby amended by renumbering sections 20. Notwithstanding any other provisions of la_w. 29. line 8." . to assist the Agency ii.tithorizcd by this Act which may be assisted under title I of the Housing Act of 1949.authorized and ci. immediately following line 8 insert the following new section: • Sue. 27. in addition to 406 . pursuant to I'tlo I of tho Housing Act of 1949.subject to the approva_l of the District Commissioners and subject to such terms. line 12. or capital grants may be made to a local public agency under title I of the Housing Act of 1949. (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). Page 73. strike out "51* nncl i:\sertah lieu thereof "501". and to authorize the appropriate agencies operating therein to accept.OF 1940- 24. 25. 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.ipoweTed to accept financial assistance from the Housing and Home Finance Administrator (hereafter iii this section referred to as the Administrator). section 508 and section 509: NATIONAL CAPITAL HOUSING AUTHORITY SEC. Page 77.4 HOUSING JtCT . 20. acquiring real property lor redevelopment of project areas and carrying out any functions authorized undor this Act for which advances of funds. and 23. strike out "321b" and insert in lieu thereof "321h". .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. ai. respectively. loans. 304. To make available to the District of Columbia. 22. 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. and capital grants. and the Agency. Page 72. "(c) The District Commissioners arn authorized to include in their annual estimates of appropriations items for administrative expenses which. 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. 21. in the form of advances of funds.1 conditions as may be prescribed by the Administrator pursuant to title I of the Housing Act of 1949. such Federal agencies are hereby authori/cd to accent funds and re.'. may enter into such contracts and agreements as may be necessary. the Agency is authorized to accept from the Administrator advances of funds for surveys and plans in preparation of a project or project. 28. Page 53. the Agency is hereby. 509. lines 19. and by adding after section 19 a new section to read as follows: "SKc. 26. Page 55. DISTRICT OF COLUMBIA PARTICIPATION SKC. Jines 3 and 4. The Administrator shall appoint a Director to administer the pryvisions of thi:: title under the direction and supervision of the Administrator. covenants. 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.

whether in the form of advances of funds. and-other assets acquired in connection with thp project or projects financed in accordance with this section with assistance under ii. 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. 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. 1934.ch agreements shall be paid promptly from funds appropriated for such purpose. shall include the.no. upon. the Administrator is authorized to allow and credit to the Agency. the Agency. The District Commissioners shall include items for such cash payments in their annual. income. Kept. disbursed. of section 107 of the Ilousing Act of 1949. the amounts necessary to nrovide 'for . -the District Commissioners arc hereby authorized to entjr into agreements with the Agency. in accordance with the approved project area redevclcr^icnt -plan. the property. as amended. 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. As such a local public agency for all of the purposes of title I of the Housing Act of 1949.riiject. are to be devoted to public housing to be undertaken under Public Law 307. approved June 12. the National Capital Housing Authority shall pay for the same out of any of its funds available for such acquisition.which agreements the Administrator iiay. in the Treasury not otherwise appropriated. as amended. approved June 12.make cash payments of such-deficiencies from-fuiids of IHc District of Columbia. revenues. 3 (k). together with interest thereon. "(3) notwithstanding any other provisions of this Act. r.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. 8i-i- 407 . Any amounts due the Administrator pursuant to any sn. Expenditure^ from such fund shall be audited. Seventy-third Congress.rely. 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. loans. Seventy-third Congress. rentals. in accordance with the requirement. or capital grants made by the Administrator to the Agcncj'. or in the form of proceeds. "(0 With respect to any project. and 7 (g). and there arc hereby authorized to be appropriated.other funds available therefor. and the interest thereon. and the last sentence of section 6 (b) (2) of this Act shall not be applicable to those pieces of real property which. to issue its obligations evidencing such loans. 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. shall be deposited in the Treasury of the LnitecTStatcs to the credit of a special fund or funds.sources as contemplated bj title I of the Housing Act of 1949. approved June 12. including the payment of any advances-of funds or loans. arc tobe devoted to public housing to be undertaken under Public Law 307. and accounted for as arc other funds of the District of Columbia. pursuant to section 7 (a) of this Act. made by the Administrator or by private sources to the Agency. 1934. and. out of any money. area redevelopment plan. local grants-in-aid as are appro.HOUSING ACT OF 1949 & loan or . "'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..arc necessary for the Agency in carrying out its functions under this section. 1934. 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. to. estimates of appropriations.project or projects. as amended..security for the payment of such loans. "(c). and to pledge as . "(2) the site and use plan for the redevelopment of the area. Scvcnty-lhiru Congress. 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). such. the Agency is also authorized to borrow nionoj from the Administrator or from private . in accordance with the approved ].jch cash payments. "(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. or revenues derived' by the Agency from any such project or projects. included in the redevelopment plan of the project area pursuant to section 6 (b) (2) of this Act.

would provide Federal financial assistance for the clearance of slums. but such obligations or such pledge shall not constitute a debt or obligation of cither the United States of of the District of Columbia. 11. In addition.6. and on line 10 strike out "509" and insert in lieu thereof ?'511". Kept. of furthe. / ~ * I. Your commit tee heard testimony r b} a great number of witnesses and was impressed not only by the ovpvwhehninn. 4009 before taking up various other housing proposals consisting. Page 84. line 6. tho uncnacted provisions of housing legislation which. R. 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. 4009 were held by your committee during the period from April 7 through May 9. 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. in the main. but also by the increasing acceptance of its major objectives even by industry leaders who disagreed with detailed provisions. have received extensive study by the Congress. In view of the long con. strike out "508" and insert in lieu thereof "510". and which were also approved last year by this committee in the Eightieth Congress (H. This program contemplates local initiative in construction. it was the judgment of your committee that first attention should be directed to II..housing occupies a major place.improvements to financing aids for private housing. 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. These studies and findings are summarized in the following paragraphs.L H. 6888. HOUSING ACT OF 1949 title I of the Housing Act of 1949. R. in substance. 2340). 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. Hearings on II. of the most urgent problem areas in the field of housing. These are. HISTORY OF THE LEGISLATION' -j . find would authorize a comprehensive program of housing research. and in view of the further fact that they arc designed to meet several. support of its provisions from spokesmen of a wide •variety of citizen groups." " _ "" 31.' •HEARINGS ON BII. No. The bill would establish a national housing policy. have been passed three times by the Senate. "(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. financing and opera- " i 408 . and for rural housing. previously. for low-rent public housing. sideration and widespread approval which these proposals had already received. II.

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

4009 Your committee is convinced. from the.not contain ihcjm>poscd_provisions of the ejirJiejJcgislatiQn^oi giuir^. is warranted by the importance of housing to the growth. other phases of housing not covered in H. cither alone or in • unibinatiun w i t h legislation all udy enacted. 4 10 . is that Federal financial assistance is essential if local communities are to deal effectively with this problem. your committee believes. Fifth. will provide a sound foundation for a comprehensive housing program. in combination with existing legislation. Your committee recommends the enactment of H. the bill would set forth a declaration by the Congress of our national housing objectives and the policies to be followed in attaining them. The bill covers five major subjects.clearance. R. 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. that this bill. 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. Your committee docs not claim that this legislation deals w i t h nil facets of the housing problem. nor did it contain provisions establishing national housing policy and objectives. III. (lie bill would authorize a comprehensive program of technical research and studies in housing. 4009 as essential to an}* effective housing program which will contribute townrd increasing and improving the general supply of housing throughout the country. R. low-rentLpubh'c_hojjsmg. The overwhelming evidence. II. Third. farm housing.' wealth and security of the Nation.evidence presented during the recent hearings and made available from previous studies of the housing problem. First. R. During its hearings on II. Fourth.comprehensive housing bills arc the subjects covered by the major titles of the bill now being favorably reported by your committee. the bill would authorize Federal loans and grants to enable communities to make an effective start on the clearance of slums and blighted areas. the Housing Act of 1948 did. MAJOR SunjECTS COVERED BY H.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. However. Second. Such a declaration. directed particularly at obtaining progressive reductions in costs which now prevent private enterprise from serving a larger portion of the need. 4009. THE HOUSING NKED There is little disagreement that housing constitutes one of the Nation's most serious economic and social proolcms today. The unenacted portions of these earlier . both from the lack of progress generally throughout the country and the testimony presented to the committee. R. 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. or comprehensive housing research.

the Bureau of the Census estimate that. 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. Unfortunately.000 and 300. will deteriorate during the years ahead. in April of 1947.000 additional nonfarin units to our inventory between now and 1960. Currently available data docs not permit a full statistical measurement of all deficiencies ii: the housing inventory.000 farm units a year each year from now to I960.300.829. 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.100. normal family life cannot be achieved. the quality of our housing supply would hr worse in I960 than it is today.000 uonfarm dwelling units and between 200.300. effective nonfnrni-housing inventory for year-round use was about 32.committee leads to the conclusion that the Nation must be prepared to build or rehabilitate at least 1. the basic problem itself is not a new one. if substantial progress is to be made in bettering our housing conditions. 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.000 new and converted units were added to the supply since April 1947. In attempting to get some mensvie of the magnitude of our present and prospective housing requirements.100. there will be approximately 39K million nonfarin families which will require separate housing. Consequently. your committee had available to it the comprehensive studies and investigation of-the Joint Committee on Housing. Just to keep up with the increase in the rate of family formation. The latest Census Bureau reports show that. Looking ahead to 1960. this means there will be need for an effective housing supply of approximately 41. However. the effects of poor housing leave their heaviest imprint upon the millions of children who are being . If no more than this is accomplished.000 nonfarin dwellings in 19(50. the effective nonfarmhousiug inventory «t the beginning of 1949 is estimated at 34. Nor would anything have been done to cope with those currently adequate imfl* which. This data and other material-made available to your . housing has never been replaced as rapidly as it should. we will require 6. after deducting seasonal accommodations ami houses held off the market for one or another reason.000 units (table 1). It has been building up over several decades. therefore. together 411 .live iu wholly inadequate and unsuitable accommodations.000 dwelling units. iinhcalthful slums.obliged to spend their formative years either in dreary. and many families have been obliged to. No progress would have been made" in eliminating the substantial number of imiu which fail to come up to any do :cnt American standard.729. It results from the fact that over the years vre have never been able to produce enough housing. or in overT crowded dwellings in which.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. When allowance is made for the fact that about 2. at prices which a large proportion of the American people can afford.

I II(>u. All told. involves the construction. ' 34. etc 001 Vacant units held off the market (hoarded up mansions. were in these t\vo categoric1'.16 HOUSING ACT OF 1949 \\ ith those units in urban nrcns which. The replacement of these units. brings up to some 14. In April 1947 approximately 5. both occupied and vacant. Some of the most dilapidated housing is to be found in rural communities.iut: Uninhabitable dwellings — 137 Seasonal collages. TAIII.li] o( llic OMJIIS. conversion. together with the rehabilitation and replacement of substandard housing.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. April 1917. Itiin-. Some of the worst overcrowding occurs in farm housing.720 Add: Estimated additions to supply in 10>>7and 10'lS through new construction and conversion 2.725.000.510 Effective supply of housing (o meet nonfarm needs of as April 10-J7 ' 32.400. units sold or renled but not vet occupied) '. lacked inside private bath and flush toilet. <• 413 .000. Your committee appreciates the fact that the problem is not limited to nonfarm areas. your committee calls attention to the fact that the Joint Committee on Housing concluded that ah allowance of 2. according to Bureau of Census . although not needing major repairs.2-18 SuMi. and in addition.300. or roughly one-fifth of all farm dwellings. April 1017.000 units. and of temporary war and veterans' housing units not a part of the permanent housing supply. limiting lodges. and that a distressingly large proportion of farm housing fails to measure up to minimum standards for health and decency. or inside toilets. rcrlra P-70 N'o. however. 100 Estimated effective nonfnrin supply.il number of nonfnrin duelling units. table 1. over half the units not in need of major repairs failed to have running water. it appears that between 2 and 3 million farm homes will need to be built or rehabilitated between now and 1960. Cnrronl Population Deport*. This figure fails to take into account. 301 1. beginning of 101!) 34. On the basis of the census statistics and testimony presented in the course of the hearings.K 1.—Effective nonjarm housing inventory as a/beginning of 10 j9 (in thousands) Tot. 820 i U.600.000 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. 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 also fails to include the effects of continued use upon old houses which today arc in satisfactory condition. were in need of major repairs. bathtubs.lnc Clinnwtfrlstlcs or tlio United Smirc. the total job. or rehabilitation of some seventeen to eighteen million dwelling units (table 2). In this connection. In April 1947 the Census Bureau survey showed tlmt 1. S. including both nonfarm and farm housing.000 units (or an average of slightly more than 1.

communities. Some of the programs of strictly emergency or experimental character have been discontinued and have been 01 are being liquidated. There has never been.. A great part of this legislation was orginally enacted to deal with acute problems which became apparent during national emergencies. 000 1C. Total nonfarm ne\v construction conversion and rehabili. 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. including the economic crisis of the early thirties. These include a system of aids to home financing institutions which is administered by the Home Loan Bank Board. and tho Federal Government in the attainment of those objectives.HOUSING ACT OF 1949 .100 34.. and industry and labor in appraising housing activities and progress. the credit insurance programs of the Federal Housing Administration. and numerous measures dealing separately with various aspects of the housing problem have been enacted. 741 IV. 741-17. however. and that the stability of I he home-building industry is essential to the health of the economy. long-range program. COO 41. 11 TABLED. and the low-rent public-housing program administered by the Public Housing Administration. It would provide a frame of reference for the use of the Congress. has been the implied recognition that the well-being and security of tho home are matters of national public policy. that it requires a comprehensive. 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).829 G. DECLARATION OF NATIONAL HOUSING POLICY • Since the establishment of the Home Loan "Bank System \>y the Seventy-second Congress in 1932. 000-3. 271 8. programs which hnve been continually revised and impro\ed by the Congress to scr\ e changing needs. Underlying tho development of these programs. the local communities. Your committee believes that such a declaration of national housing goal and policies is needed. labor. But from a considerable part of (his legislation have emerged permanent. the necessity of shelter to meet the production requirements of World War II. the administrative agencies. every successive Congress lias given attention to housing.—Housing needs of the United Stales in 1060 (in thousands) Number of nonfnrm fainiliss which will require housing in I960.effective supply of dwelling units needed in I960 Subtract: Estimated effective supplv. as \\ell as the establishment of several emergency programs. Add: Allowance for 4 percent effective vacancy rate for rent or sale Total. 500 1. 413 . 470 14. and the postwar veterans' housing emergency.741 2. It is now well recognized that housing is not a temporary problem \\hich can be solved by emergcncj* measures. ' 39. a statement by the Congress of the national housing objectives or of basic policies as to the respective spheres of activity for industry.

4009. The statement in H. The reduction of the costs of housing without snurifico of such sound standards. and methods in residential const ruction. and duties with respect to housing. The poiicj. 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. housing of good quality.. The production of housing of sound standards of design. 4. The use of new designs. 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. the bill calls for assistance to communities in undertaking positive programs to encourage the production of lower cost. techniques. and 5. The de\eloj)incnt of well-planned. 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. the policy declaration contains a specific congressional charge and directive to the administrative agencies of the Federal Government to exercise all powers. is in full accord with those earlier declarations and recommendations. integrated residential neighborhoods and the development and redevelopment of communities. iivability. To obtain further assurance that all housing acti\ itic& of the Federal Government.12 HOUSING ACT OF 1949 The policy declaration in H. will be administered within the letter and (he spiiit of this defined national policy.declaration in H. 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. Furthermore. II. R. while it contains certain improvements. and purchasing power. production. 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. to the extent that those needs cannot be met through reliance upon private enterprise. The stabilization of the housing industry at a high annual volume of residential construction. functions. 3. so as to encourage and assist the attainment of the following specific objectives: 1.and size for adequate family life. the use of standardized dimensions and methods of assembly of home-building materials and equipment. Such a declaration of national housing policy can provide tltc ncccssai'3 guide lines now lacking for the concerted and sustained efforts 414 . and to enable the housing industry to make its full contribution to an economy of maximum cmplo3'incnt. and the increase of efficiency in residential construction. In defining the policy to be followed in attaining this national housing objective. 2. construction. 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. materials. at the regional and Wai levels as well as in Washington. R.

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

000. The appropriate local public body in each city would select the project areas. 1949.000 . .000. 1950. 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 further amounts of §250. outlays required.000). 4009 S.000. 1949.000. Federal loans would be utilized. 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.000).upon a determination by the President. R. and prepare them for disposition f^r redevelopment.000. " 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.000 becoming available on July 1. These arc the costs which. It is in the national interest that iip further delays in starting an effective attack on the slum problem should be countenanced. acquire the project sites.000. ' and any of the.000. furnishing technical assistance. at any time or times. The capital-grant authorization totals $500. The bill penults the initial loan authorization.. The loan authorization aggregating $1. 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.t authorization of $500. with very few ahd'Jipited exceptions. and assuring compliance with statutory requirements. have prevented the loca) communities.000. prepare the redevelopment plans. by not to exceed additional amounts aggregating not more than 8100.000 upon a detennina- .000 on July 1 of each of the three succeeding years. that such action is in (he •public ir(.national economy. will. FEDERAL ASSISTANCE ATJIIORIZED IN H.000 on July 1. from moving ahead with this task within their own limited rcscfurccs.crest. any time or times.000 and would become available in f i \ o annual installments of $100. 4009 would authorize the Housing and Home Finance Administrator to assist L"-alities in carrying out slum-clearance projects.. The bill permits the initial -capital-grant authorization.000 beginning July 1. at. together with the large capital.000. and any of the authorized increases therein becoming available in any yoir. $25. authorized iiiuruasi's therein becoming uailablo in any year to bo incruasud (subject to the total oapital-gra.000. to bo increased (subject to the total lonn' authorization of $1.000 would become available over a 5-year period. K. The role of the Federal Government would be restricted to the making of loans and capital grants. by not to exceed additional amounts aggregating' not more than $250.01)11. clearing. 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.to finance the capital cost of acquiring. and preparing the sites for appropriate reuse. $225. HOUSING ACT OF 1949' These arc the costs which prevent slum clearance from being a profitable venture for private enterprise.000..14 .

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

This applies with particular force to families of minority races for whom the problems of relocation arc particularly difficult. Federal aid to localities for slum clearance is •.ii \\ill be redovcl -pod for predominantly residential use. both loans and capital grants are authorized.portion of the central city population.nice may-he provided. 418. in addition. The permanent housing Jinist. for admission. It is important to point out. first preference for occupancy of low-rent public. however. the bill clearly recognizes that the clearance of slums and the provision of decent housing for families who live in them arc insopaiable. . JR. In the first place. 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.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.project areas or elsewhere. Jl. . Second. rather than detract frjin.as one qf its major purposes the provision of adequate housing for such families. 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. coiisiot of decent. The slum-clearance program.it will contribute to. and in airy-event within 10 years. ThiiM.predominantly residential or whii.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. y. First.dealing directly with housing. i-. in the . This program must be conducted in such a manner that.1051. 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.ould result.restricted to those areas which-are. this essential objective. if the local governing body determines that undue hardship. but in the case of open land no-capital grants may be made. 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. There are. housing projects assisted under this bill must be extended to families displaced' from slum-clearance projects if they are otherwise. 4009 would assure the adhcience to Ihe primary Jious•ing purpose in two principal-respects. set in the context of a bill which has . flic restrictions on the nature of the project* fur which Federal assist . three specific safeguards. safe. the demolition of resident inj.es within the financial means of displaced families. eligible. and . In the case of predominantlyopen land. therefore. As already noted. The second basic principle relating the slum-clearance program to tluunajor purposes of this legislation is through. structures in slum-clearance projects is prohibited prior to July 1. SLUM CLEAHAXCE AND HOUSING While the slum-clearance program pjovided in this title is separate from those provisions . your committee wishes to• emphasize that the primary justification fqi Federal assistance for this purpose is the improvement of housing conditions for urban families.

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

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

-rccntagc. including heat and nil other utilities. The bill authorizes the commencement of constriction on the first installment of 150. not exceed one-fifth of income.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 . 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.i|p cnicrprise even with further possible financial aids. and with proper budgeting their incomes are usually sufficient to'supply all the basic needs of their families except adequate shelter.000 units. while 30.000 units is authorized in 7 stages. if possible.000 units until the full program of 1. both in its extent and imturc. take action to prevent it. If the families now living in the slums are to be provided with decent homes. On the -generally accepted-rule that the cost of housing should. Your committee is convinced that this can be done only with the assistance of substantial public subsidies.050. it is. The breadwiiihers of most. The problem. 7 ni^iual installments of 150. In order that the progress of the new program may be adjusted. if necessary. Your committee is equally convinced that the public interest amply justifies the provision of such subsidies. and will undoubtedly rc-iain for years to coino.families whose incomes arc so low that they must continue to live in slums or other inadequate housing unless we. to changing economic 'conditions. 1& family..000. both Federal and local. .HOUSIN. After weighing all the-evidence presented to it. Adequate shelter is not available to these families becausp rents or prices charged for such shelter would represent an . Despiti-high postwar 1 -vels of employment and income.of our. 1949. the average rent which the urban families hi this lowest 30 percent income group can afford to pay would be approximately $27 pelmonth. R.050. therefore.today. is not the sort which can be solved in the foreseeable futuii by pri\. of these families are usually gainfully employed.N'pKR II. a considerable iM. This autho^ization will become available in.rge for decent existing housing. 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.1500.G ACT OF 1949. -1009 The bill authorizes the construction of not to exceed 1. the rcpprts of the Bureau of the Census show that 19.000 units after July 1.in 1047 of less than $2. 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. Each year thereafter this authorization is increased by 150. PROGRAM AUTIIOUI55KD U. 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.unduly aiid prohibitively high proportion of their limited income. 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 ..7 percent of utban-families had money incomes.3 percent had incomes of less than-$2.

050. of course. 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. Lowinconic families who are.000 after July 1. but. Although contracts may be written up to this maximum amount. Housing Administration is authorized under the pending bill to enter iiito annual contributions contracts for 885.000 and a final 875.000 per year.000 units. for example. accordingly.000 units at tiny time.000 dwellings. K. after any authorization was increased by a total of 100.000. It is therefore anticipated that the funds actually borrowed from the Treasury will be very substantially less than the authorized amount.annual contributions can also be accelerated by the President. 1953. provided that the total authorization can never exceed 1. In the event that the full number of starts.00q units. 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. 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. no further increase could ever be made with respect thereto.000 units at a subsequent time.050. Any of the authorizations could.20 HOUSING ACT OF 1949 any time or times by amounts aggregating IT"' more than 100. authorized in respect to the beginning of any fiscal year was not fully used in that year.000 units at one time and increased by a further 50.000. In this way. the contributions actually paid will not exceed more than -two-thirds or three-quarters of this amount. 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.000 per year. on the average. The total maximum contributions thus authorized would amount to 8400.000. under the provisions of the bill.000. be carried over for subsequent . remain effective for subsequent use. m. The total amount which the PIIA may borrow from the Treasury and have outstanding at any time is increased to Sl. subject. Since a positive program of slum clearance is 422 .000. preference for admission to low-rcn\ housing.500jObO. and authorizations which become available at the beginning of one fiscal 3'earniay.000 units. the authorization for.000. It also places the borrowing power on a revolving-fund basis. the President can adjust -any of the authorizations between a top limit of 250. Thus. if unused in suchycar.000. 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. 1949. of course.000.000. JI.000 on July 1. Subject to the total of 8400. to the total limitation of l. This liinit will be increased by three annual increments of 880. The first of these proposed amendments is designed to relate the public housing program to the new slum clearance program. such authorization woiikl. The Public.000 units and a bottom-limit of 50. it could be increased by 50. be increased by 100. it is expected that. instead of the present authorization of $800.

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

adopted in ] 937. Moreover. which leave no doubt whatsoever that only low-income families will be eligible for public housing. This is the amount formerly authorised by the Public Housing Administration. lii view of this fact.t family income cannot exceed five-times the gross rent. Requirements governing local bntributioris have been perfected to take advantage of actual experience. your committee desires. The incomes of all tenant families must be periodically fccxnmmcd. . whether or m»t Federal contributions were required for those 2 years. AMENDMENTS RELATING TO CONTRUIUTIO. 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 . The present dollar cost. 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. limits. Accordingly. the bill simply requires that projects be exempt from real and personal property taxes. 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.and equipment of dwelling-facilities to $1. In the judgment of your committee. this represents an amount which is both fair to the cities and at the same time assures an adequate local contribution through tax exemption. the bill specifically provides that hc. and. if their incomes exceed the maximum limits for continued occupancy. tax remissions.by the Public Housing Administration. including heat and nil other utilities.im clearance and to veterans. and in .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.. In computing family income. With respect to projects assisted under this title. 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.order to put projects in nil localities on nil equal basis. the bill requires local ^authorities to give preference among eligible families to those with the most unjent housing needs. 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. the bill authorizes payments in lieu of taxes not in excess of 10 percent of shelter rents. they arc required to move from the . a deduction of $100 is allowed for each minor dependent.projects requiring Federal contributions in those fiscal years.22 . the bill raises the limitation on the cost of constniction.project. or tax exemptions. In the case of limits for admission.NS AND COSTS In addition to the foregoing amendments. in the initial selection of tenants for a project. arc obviously unrealistic in view of present building costs. subject to the preferences to families displaced ^>y sl.750 per room. HOUSING ACT OF 1949 approval . In selecting tenants. A very necessary amendment in the bill revises the provisions relating to the capital costs of low-rent projects.

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

assume the leadership in analyzing all of the factors that in any way impede housing production. problems whose solution holds the best immediate promise of wide application by industry and local governments. and to promote widespread acceptance and use of the practical results of such research. will bo pointed 429 . It will.not to work in hom3. research. experiments. Federal Government should therefore broaden its research and. or cast doubt on the value of housing as an investment. the Forest Products. local administration or Federal. The Public Health Service of the Federal Security Agency. aspect of housing. In this connection. therefore. 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.other American industries. either directly or incidentally. with agencies of State and local government. in local building regulations. the Housing Administrator is authorized to underhike studies in cooperation with industry and labor. to those. Laboratory of the Department of Agriculture. Tims. It is my belief that the. . At the same time the bilf recognizes that other Government agencies arc now engaged in studies. whether it be engineering. 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. 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. like other titles of the bill. insofar as possible. management. and the Bureau of Labor Statistics of the Department of Labor are examples. This is extremely important. financing. In this connection your committee calls specific attention to the fact that the research title of the bill.Construction Division. In addition. recognizes the basic local responsibility for housing. your committee wishes to emphasize certain underlying considerations which will guide the administration of this legislation. 4009 will be directed.. the Bureau of the Census and the National Bureau of Standards of the Department of Commerce. Housing research must lx> broad enough to disclose. 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. and investigations which bear on one or another phase of housing. Complementary means must be found to rjempve these obstacles if full use is to bo made of the results of technical research.the possibility of constructive action in ever}'. R. In recommending this title. labor.also expects that the research conducted under Ihe provisions of H. In the first place. 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. and with educational and other nonprofit organizations.HOUSING ACT OF 1949 27 economic in origin. prevent the improvement of our housing standards. sanitary codes. . The formula of a progressively higher volume and lower unit costs is too successful in too many . The committee . tin. be necessary for the Housing Administrator to give special attention to the task of disseminating the research findings. etc.building. add to costs.

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

which is usually associated with cities. considerable number of these builders throughout the "country. that the quality of farm housing as a whole is considerably below the standards of nonfarm housing.higher. Overcrow ding. impro\e (lie sol. wovidc power. as compared to 8 percent in the case of npnfhrm bousing. During its hearings the committee received concrete evidence of how Government research in only two design problem. local:governments..000. . 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.. as well as industry. si-i—•* '". it is generally agreed. and to attract and maintain on the land a product ive type of person. FAHM HOUSING Your committee regards the farm housing title of the bill-as essential ui dealing with the phases of the .i mere supplement to lowii-and-cii-y-housing programs.applied by c. The committee is informed that even in 1947 more than 2. ns nil of the facts before your committee indicate.level of agricultural inuoiuc in the past several years lin* raised the standard of living on the farm. also. Your commit tee is a\\ are tlm. the best promise of attaining real and lasting cost reductions through technological progress in an industry which. and the Federal Government. has lagged behind other American industries in this respect.' .nciit.national housing problem covered in this bill. Tmpro.. have received less attention thus far than those of urban areas is the peculiar-mid specialized nature of farm housing. and that a considerable amount of home improvement has resulted.as such. It has been treated as a byproduct of efTon* to increase production. Only 3 out of 5 had electric lights.isno. 10 percent of our farm homing was in-need of major repairs. was proportionately twice-:«s prevalent in'farm housing as in nonfarm housing.HOUSING ACT OP 1949 29 .t tin. builders if they arc made available to them. It is a program which. The farm home must be considered as ii. farm housing has been largely ignored both in our housing and our agricultural programs. secure rural economy.s could result in substantial sayings to Amcrir can home buyers if . Vili. Two-thirds of our farm dwellings lacked running water. Only 1 out of o farm dwelling units liiiil both private bulb and flush toilet compared to 73 percent of nnnfarm housing. The result has-been. despite this relatively . under Government leadership. The research program offers. will bring real and lasting benefits to nil those interested in housing the consumer.less than §1. labor.improved financial position for fanning as a whole.500. Heretofore. or as .\ oniuiit-of farm housing standards is essential to a sound and .m. One reason that form housing problems. Your committee is firmly convinced that the n-scarch program contemplated under title IIT of the bill is highly desirable to facilitate housing progress. In 1047.000 farm families produced farm products yajuiul at. However. 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.cet it. a large proportion of our farm families is still unnblc to obtain adequate housing.

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

in connection with a slum clearance or low-rent housing project. and obligations issued under authority of the Federal Farm Loan Act or by the Federal \\omc loan banks.. pr building and to a maximum of.000 in the aggregate to any one individual. $2..assistance by the Department of Agriculture in farm-home design. and some of which arc technical. ho\\e\er believes that. and deal in obligations of the United Slates Government. bucli. This is done'by action 502 (b) of tlio bill. a local public agency or'-u public housing agency. some of which are of substantive importance. In view of the special security features which would thus attach to these notes.d by section 5536 for tho purchase of inves ..to.id section 5200 of the Kc\ ised Statutes which prescribes the same limit.:.. This -authority would be consistent w i t h tlio present pnnisions of la\\ which permit such banks to underwrite. instead of securing an advance fronvthc Federal Government under its loan contract.bill. IX. nature of a loan. relates to short-term obligations only when thoy are. general obligations of any Stale or of any political subdivision ihe.construction. 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. dwelling. Similar authority-is extended by this section \\ilh respect. it-is necessary aLo to ame. classified as "imestmeiit securities.itioiis for (lie purcliase of loans as are prescril). may. made by subsection (a) of section 502. Therefore. short-term iiotes -when issued may.reof. Tlic bill also provides for technical. 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. borrow moneys from private investors on shorUtcrm notes. some issues of tlitso short-term not'u 1003*. 433 .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.and. MISCELLANEOUS PROVISIONS Title V of the bill consists of a number of'miscellaneous provisions. under the bill. 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. securities." The Treasury Department. The amendment to paragraph 7 of section 5136 of the Revised Statutes.not have the qualifications of '"investment securities" but would rather ( artake of the. _ AMENDMENT OF NATIONAL BANKING ACT Under provisions contained in titles I and ILof tlie.000 with rcspe t to any one farm. bank's capital and surplus.HOUSING ACT OF 1949 31 limited to $J .•.'.

and as .19...Lj PHA. and geographic distributio.and to purfoim important supervisory activities . CBXSUS OR HOUSING The hearing*on H.:32.i of the witnesses.completion of (. and the House last month passed that appropriation bill without such ajjmitatioh.he project.authorized. The Bureau of the Ce. 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). that no payment* of annual contributions should be made which \yere occasioned by payments in lieu of taxes in excess of amounts originally .contracted lor.i of all d.49 included provisos to the effect. and Aln=ka in 195 and decennially thereafter.iii. Similar considerations led the Committee oil Appropriations to omit this personnel limitation from the provisions go\crning the Public -Housing Administration contained in . This restriction had the effect of prohibiting payments in lieu of taxes equal to 10 j)ercent-of shelter rents.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. q. as had previously .0 ana P-3 to not exceeding 20' percent of the tota. chanu . v-^_ ' The section would also lopeal a .ed.will be authorizcd-in the future under subsection 205 (b) of this bill. 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.l number of such employees.i it feels nect'ssai'y to I hi. This «. . Puerto Rico.»ch of the 18 States and the District of Columbia.the independent oinces appropriation bill for 1950.velling units in t i n . "ristics. 4009 made it clear to your committee that there is au urgent need for comprehensive up lo-d'alc information Oj.proviso in the Government Cor^ pbrations Appropriation Act for 1949 which limits the number of employees of the Public Housing Administration above grades CAF1. These provisos of the twojippropciatioii acts arc therefore repealed as of the beginning of Ik" fiscal years for which they apply. R. regardless of their views on other aspects of the hill. with regard •> the necessity for enacting section 307. In recommending <i decennial:census of housing. 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 : : .ensus \yould obtain infornjation coiicui-niag the numher.uality.< 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/.ith respect to those agencies.- IT 7SING ACT QF 1949 ^ 6 / -AMENDMENT OF GOVERNMENT CORPORATIONS APl'ROPRIATlbX ACTS FOR '1948 A5TO 1949 .lia\\. Thu committee \\as deeply impressed with the unanimity of favorable opiiu'c. This section would give the Bureau of the Census the authority to conduct a census of housing in c.United Stales-and the Territories.The Government Corporations Appropriation Acts for 1948 and for .

Despite this widespread interest in housing information. Thus. also be of tremendous assistance to Federal. Information obtained in the census of housing will.housing problems of the Nation.50 or in subsequent census years. 507) should be enacted by the House as a part of this bill. and local officials charged with the responsibility of dealing with problems of housing. a census of housing is of tremendous assistance to the large . it is uot possible through sample studies to obtain detailed housing data on a locality basis. your .o the vast improvement in our general economic situation sinci it time. R. S. Entirely apart from its. Such early legislative action is necessary to permit essential advance planning and organization. and this committee is convinced that these somewhat broader provisions should be adopted.in population which have occurred since 1940. Considerations similar to the foregoing led the House. 1070-os passed by the Senate. of course. particularly to localities participating in programs "under titles I and II of the bill. This sample study of the housing situation made it possible to identify the overall dimensions of the present housing p^blcm.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.value to those directly concerned with the . However. without which the quality of the 1950 census of. 2203. Such current information will be invaluable. It is imperative. therefore.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. Helpful as this sample study has been. social welfare. on May 9.action on the necessary authorization for a census of bousing. and related activities. this information is in the main seriously outdated. 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 . census as part of each decennial census hereafter. In view of the tremendoup graphic shift. that steps be taken to get necessary locality information 6n-a current basis. there are still many gaps in our knowledge which can only be filled by a complete census of housing. This is especially true since planning has already started for the 1950 population census. city planning.housing would be impaired.tate. urban redevelopment. taking of a census of housing in 19. It has alsro driven home to this . there is now no specific authority for the.S. These provisions arc very similar to those of the bill already passed by the House except that this bill provides for a housing. namely. and since the housing census is to be taken at the same time and by the same staff. to pass H. families of low and>mqderatc incomes. a bill to provide for a housing ceiibiis in 1950. The census provisions of this bill are identical with those in. The mo«t recent detailed locality information now available was provided iiVtlu-1940 Census of Housing.committee believes that the census provisions iu Ibis bill (sec.HOUSING ACT OF 1949 33 1947. ns . Your committee calls attention to the paramount importance for completion by the Congress of early . building construction.

and labor.34 HOUSING ACT OF 1949 . Territories. 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.jl he coiuersion of certain State-aided low-rent or \etcraiis' housing projects. and municipalities under titles I and EC of the bill. OTHEIl PUOVISIOXS . 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.amend-. 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. . to the same extent as local grants-in-aid. under appropriate conditions. Appropriations to the District Commissioners would be authorized for such purpose where necessary. in recognition of the interest of these agencies in problems related to the Federal Go\ eminent'a housing program . «••> members of ( l i e National Housing Council in the Housing and Home Finance Agency. 436 . under title I . industry._ 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. The proposed new section 509 would permit the District of Colupbia to obtain the benefits of Federal aid for slum clearance. the appointment of and compensation foi a Deputy Housing and Home Finance Administrator to. .assist the Administrator and to act in his absence.housing assisted under the United States Housing Act of lfl:)7. It would provide that in the event such local grants-in-aid arc Jiot sufficient to meet the local grants-in-aid requirements. .of this billj on the same basis as provided in this bill for other cities throughout the country. but the. . . to low-rent. 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.Security* Administrator. or his dcsigncc. under title t of this bill. The present District of Columbia Redevelopment Act would remain in full force andi effect. are approvablc forothcr ci tics and Stales. the inclusion of the Secretary of Labor. and (ho Federal . finance. for States. 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.

S2 IBM 250 l. at any time or times bj the Frcsidcn! by. 250 100 350 100 5 105 SO .to exceed additional amounts aggregating not more than $$0. * Any subsequent year. Since the inception of tho original pr. R. the section establishes as specific objectives a volume of housing production and related community development sufficient to remedy the serious.000.HOUSING ACT OF 1949 35 L MAXIMUM RATES OF FINANCIAL COMMITMENTS UNDER H. to eliminate slum and blighted areas.5 Contracts for inmul contributions: Total annual contributions 10Z5 SO ' 1 SI •104 SO 1.Jiousing industry to make ih> full •contribution loward an economy of maximum employment.. * Ma> bo increased. SECTION H.5 1952 1051. amount added to existing authorization of $500.5 percent of the maximum amounts which could be paid. and to enable thu.njo is i he maximum amount which inay be pniil in any 1.Obb 700 250 250 1. period.o as soon as feasil>lc tho goal of a decent home and a suitable living environment for every American family. to redevelop communities so as to advance tho growth and wealth of the Nation. Thus.un. SHOUT TITLE This section provides a short and convenient form of citation.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. tho anniul contributions actually paid have amounted to 5S.rcntpublic'hoiislng1 Total.. 1 Subject to annual determination by tho Congress within these limits. within total authorization.Y SECTION ANALYSIS OF H. 100 •500 12.000.5 i May bo increased.000. year. production.nl over a 40-year.000. AS AMENDED SECTION 1. and purchasing powor. at any time or times by the President by not.OOO. 4009. not to exceed additional amounts aggregating not more than $100.. repayable loans Contracts for grants: .000 and the total-authorization placed on a revolving-fund bask. . 1 Thb.. at any time or times by the President by-additional amounts aggregating not more than $250.housing sliortajjc.950 250 75 325 100 4' 100.^i. production. .000.. Low. 1 The contributions authorized for farm housing may be paid over a 10-year period.5 512. to reali/.000. I iscalyea IT lew 25 TOO 25 750 100 1 101 85 S3.Farm housing .5 75 • MOO »»5 75 405 81. a iilun total authorization. 5 1951 _225 50 275 100 2. 2. In so doing it-atrcsaus the Xation's interest in housing production mid related cuiiimunit. and purchnsing. 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. XI. 4009 [In millions of dollars] _ Commitments Tor repayable loans: Slum clearance * . R. SECTION' 2. < Thb annual contributions authorized for low-rent public housing may be j.000. The SlOO.powcr. Tho kcysionp of tho national housing jjolicy established by tho Congress m this section to facilitate the attainment of these objectives 437 . within total authorization. * May be Increased.

at an interest rate designed to return to the Government the cost to it of the funds it loans. integrated rcsi? dcntial neighborhoods and the development and redevelopment of communities.and " . where needed. safe. at lower cost . and the increase of efficiency in residential construction and maintenance. and duties with respect to housing to so exercise them as to. pf communities. and that appropriate local public bodies shall be encouraged and assisted to undertake positive programs of assisting the development of well-planned. and without Mich aid. construction^ livability. (3) the use of new designs.to finance necessary project costs. and that governmental assistam-c shall be utilized where feasible to enable private enterprise to sefye still more of the total heed. To asstne that all housing activities of the Federal Government will be administered in accord with. encourage and assist (1) the production of housing of sound. 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.of housing of sound standards of design. livability.so as to make such areas and other areas necdi.slandards of design. and that governmental assistance for -decent. Loans.. with the active participation of private enterprise. Two types of assistance arc authorized: 1.36 HOUSING ACT OF 1949 is that private enterprise shall be encouraged to serve as Inrge. 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. As a complementary policy. (2) the reduction of the costs of housing without sacrifice of such sound standards. and (5) the stabilization of the. and methods in residential construction. housing industry at a high annual volume of residential construction. powers.a part of the total need as it can. . the use of standardized dimensions and methods of assembly of home-building materials and equipment. techniques. and the production. 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.established by the Congress. there is included a specific congressional directive to the administrate e agencies which have functions.l for residential construction available for development or. materials. (4) the development of well-planned.redevelopment. and size for adequate family life. both temporary and long-term (but not in excess of 40 years in the case of long-term definitive loans). and size for adequate family life. the objectives and pollens thus . the-development arid redevelopment. 438 . integrated residential neighborhoods. construction.

__ 2. and improvement of building ami related codes. and modernization of local codes and regulations relating to land u^c ami adequate standards of health.2. It also requires the Administrator. SECTION 102. improvement.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. the date the contract for thu loan is made'. This section. That there be adequate provision for. SECTION 101. and safety for dwelling accommodations.. LOANS 1 J / ..area. 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 designed to serve •Ideal-needs. That_evcry project assisted be a local undertaking. in extending financial assistance under this title. or regional (within a State). and (2) preventing tlie spread or recurrence.t. The administration of the program would be under tlie jurisdiction of the Housing and Home Finance Administrator.financial participation in ah amount equal to -a. . . That the redevelopment plans for the redevelopment areas in the locality afford maximum opportunity. the rehousing of the families displaced by the clearance of the. HESrONSIBILITIES This section provides that in extending financial assistance under this title. . 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. sets forth the forms and extent of Federal financial assistance. or regional (within a State). for the redevelopment of.- HOUSING ACT OF *949 37 . Kept. sanitation. or unified metropolitan basis.. 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. -~ 4.. together with section 103. In-the administration of the pjqgram adherence to the following principles is required: 1. 3. locally managed. 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. suoh areas by private enterprise.. locally planned.planning. That there shall be local . to encourage the operations of such local public agencies as arc established on a State. consistent with the sound needs of the locality as a whole. in such community. That any project assisted be related to the improvement of housing conditions in the locality. of slums and bli0!itcd areas through the adoption. or unified metropolitan basis. locally approved. 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. 500.81-1 0 . H. A . 5.

.000.000 on and after July i.38. in the form of_capital grants. increased by $225. especially schools. ml rate. by not to exceed additional amounts aggregating not more than $2fiO.tax base sufficient to permit the '-ouancu of bonds for building. 1952.000.tr'ucl .land which is open or predominantly open. out of any moneys winch become available to such agent} for the undertaking of the project or projects involved.to take the building over through -the issuance of its own bonds.made.000. 'j'his is necessary. CAPITAL OUANTS This section provides for Federal subsidy. that such action is in the public interest.000. to issue and have outstanding at any one time notes or other obligations for purchnse by the Secretary of the T. a temporary loan could be made to the school district itself.000.000. In connection with any project. and 1953.. In siicli a case. with interest at not loss than the applicable going Fed. with the approval of the President. 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. particularly in tlie case of outlying projects which can facilitate the clearance of central shim areas.local public agencies for survej's and plans in preparation of projects which may be assisted under this title.upon the condition that such advances of funds shall be-repaid.s.000. and to substitute such funds for "borrowing from the Government. Tbc section also provides that the Administrator may make advances of funds to. a new school -until the project area is actually developed. This loan authorization becomes available over a 5-ycar period at the-following v. each of the years 1951.thc Administrator is authorized.. and that the contracts for such ad\ances of funds may hi.available in any your to-be increased (subject to the total loan autliorhalion of $1. and" by $250. SKCTION 103.000. The section also permits (he initial loan authorization. where difficulties may arise due to the lack of t i-rtain public facilities.-casury aggregating riot more than $1. the school district for such an outlying. For example. To provide.the school and lease it to the school district pending the ability of the district .project a»ea.000 on and Jtcr July 1 i. area might not have a. 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 . respectively. \Miile providing for federal assistance in the form of loans where necessary. or alternatively a loan could Tic made to flio Veal -public agency -undertaking the project so that this agency could'coi. Such temporary loans-must be repaid in not to exceed 10 years.000. 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. at any time or times.itc: S25.initiation by the President. 1949.000 on and after July 1. 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 .. and any of the authorized inn-cases therein becoming.000).on. the suction also contains provisions to facilitate financing _ by private capital.000 upon a dot<>. HOUSING ACT OF 1949.the funds necessary to make the loans.

1951. Such projects would be excluded from the computation uf aggregate project costs. 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. T!ie section also permits the initial capital grant authorization. local gnnts-5n-aid. c.HOUSING ACT OF 1949 39 with an approved plan for the project area and at prices consistent with such use. if a project cost §1. hi any time or times.000. Although Federal loan assistance for the acquisition and preparation of open land for residential use is provided for.000) rather than $200.000 (being flic difference between the loss of $300. respectively.000 and the local grants-in-aid of $150. 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. 1952. the extent necessary. no local grantsin-nid are required.uld be limited in amount to two-thirds of the net cost of the projects assjstcd_in the locality.under tliis title cannot exceed two-thirds of the net loss on such projects. no Federal grant would be made for the project. and any of the au'hori/.XTS FOU LOCAL fiUAXTS-IN-AIR This section requires the locality to share the net losses of any project iissialuil b.000.. Thus. by not to exceed additional amounts aggregating not more than $100000.\ Federal capital gnints under this title and to call upon the Federal Gournmcnt fur nid only to.correspondingly.000. HKQUinKMr. In the event that local grunto-in-aid -were sufficient to cover the entire loss.ed increases therein becoming available in any year to be increased (subject to (lie total capital grant authori/atio'n of $500. The Federal capital grants with respect to all projects of a local public agency oh which contracts for capital grants-have been-made . 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. Accordingly^ no Federal capital grants niay be made" in commotion with such n project and.i deterniiniilion by the" President. 1950.000).OOO.that tholouil community mustitself participatefinancially 441 . It pro\ idea . aim net losses used as.000).000.000 in site improvements and' public facilities paid for by the municipality as local grants-in-aid) aiid if the proceeds from disposition were StOO. resulting in a loss (or net project cost) of $300. 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.does not appear that JicdcraLsubsidy assistance for such cases wouIcLat tins-time be justified..000 (ui and after July 1 in-each of the vcnrs 1949.000 upon . With respect to any individual project. This capital grant Authorization becomes available over n o-yi'. The Administrator is nulhorizcd to contract to make capital gnnts aggregating not more than $500.000. the basis for the sharing-of Federal and local grants for all oilier projects in the locality. 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.ar period at the following rate: $100. The capital grants wo. SKCTION 101. it.000. that such action is in the public interest.000 (including 8150. 'the Federal grant \\oiild"-then bjj limited to $150.oJO (being two-thirds of the loss of $300. und 1953.

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

.this title. Or the city may perform demolition or removal \\ork with salaried personnel in its engineering dei>arlmcnt.-and the proceeds -from any such sales would be deposited in-the Trejisiiry as miscellaneous receipts. man-hours vurkcd. PROTECTION OP JjAHOR STANDARDS This auction designed for the ]>rotcv.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. it shall be sold at a price equal tbats fairimarkei value. by pr-'viding that any IaiurVvJlit.tiun of labor standards. 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.pay rolls._ SECTION 107. SURPLUS . makes the "kickbuck" statute applicable tojill such projc'Ug. In so doing. _ In view of the present acute housing shortage...DEHAL HEAL PROPERTY This section authorizes the transfer to the Administrator of any Fectaral real property surplus to. SECTION 106.provisions of this section arc general in nature.thc community. Demolition or rcim>\ al work or oif '-improvernent work. safe.c form of project work. 443 .in effect requiring that decent.paid for by the State. ' . SECTION 100.HOUSING ACT OF 1949 . The .. development of any project assisted under. it provides for the anointment of a director to administer the provisions of this title .aider the direction and supervision of the Housing and Home JFiriancc Administrator.jn^icct. the city (as a part of its local graiits-in-aid) may install streets in the projvc. 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. SECTION' iO_8.41 protection for such families. 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'. GENERAL PROVISIONS This section gives the Administrator the technical powers necessary for the performance of liis duties under this title. c i t \ . the total. For example. requires tliat not less than-prevailing \\agcs be paid to those employed in the. When »»ch land is sold to the local public agcocj' by the Administrator._tlic Jiccds of the Co\eriiment and within the area of n land assembly project. aud which are reasonably accessible to their places of employment. this section would prevent the demolition of 'residential structures in connection with tnis-program prior to. and requires monthly reports by all contractors used on the project. and cxptnditures for materials.t area us part of aguiicral city paving contract \\hich also covui-s street \\oik in areas other than the project area. to the Secretary of Labor a^ to the nunibrr of persons employed by them.. and sanitary housing be available for the displaced families in areas which have generally satisfactory public and commercial facilities.

utilities. and other site improvements essential for the new land uses contemplated.) Through these definitions ajso. -' 444 . Through these definitions. and puriod of Federal annual subsidy to rtohievo low rents. (2) the removal of existing structures and .' j I I I ' Tins section sets:forth the definitions of the basic terms used in the title. and (4)' the making of the Inncl available for development or redevelopment _ at prices. families whose incomes are so low that they are not being adequately housed in new or existing private housing. The title «ls» contains. special preferences to. to the amount. a miscellany of technical and perfecting amendments to tin.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 . the section limits Federal assistance tp-the furtherance of such pur• poses as (l)-tlic acquisition of the land in the area requiring devclop. and nil adaptation to current needs \v\ih respcot. or open land necessary for sound community —growth which is to be developed for predominantly residential uses. moot the needs of veterans of low income and then families.as provided in sec. (3) the provision of streets. 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. DEFINITIONS ' . This titlii contains.United-Si ales Housing Act of 1937 that the }] years c/f op«rjjtio»s midw i< Jinvo i»rfiralod lo br : and desirable. enlistment of private capital to-financo substantially all of the capital cost of lowrent public-housing projects.possible. or Jand which is predpmirmntly open and which because of obsolete platting. JF any other deteriorated or deteriorating area which is to be developed or redeveloped for'prcdominantly residential uses. 103 (a).or support the new uses of land in projects on land which is open or predominantly open. as amended. 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. under the terms of the United States Housing Act of ^037. J. diversity of ownership. a constituent of the Housing! and Home Finance Agency. 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. consistent with-its proposed new uses. i mcnt or redevelopment. 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. increasing emphasis on-local responsibility and initiative. is not eligible for aiiy capital grant.42 HOUSING ACT OP 1949 SECTION 110..• improvements. •(In the last caso-the project thereon.'his program will be administered by the Public Housing Administration. Aid under this title to assist the construction of any of-the buildings contemplated by the redevelopment plan is expressly barred. including the amendments made by this bill.

1949. as indicated by actual investigation. and that every such family came frj. or was (without fault of its own) cither without housing or was about to bo without housing pursuant to a court order of eviction.using agchcj' if required by PHA bocaijse of changed conditions. Such limits nuist be revised by the local public ho. it is also icquiicd tJiat there bo no discrimination against families otheiwise eligible on the . and sanitary housing toward meeting the need of an adequate volume thereof.\ subject to approval by the PHA.now serving.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. Before any contract on a project initiated after March 1. hul these losses should bo infrequent and. safe. This section also provides that every annual contributions contract for 11 project initiated after March 1.HOUSING ACT OF 194 P 43 SECTION 201.aJcelativcly minor nature. 1949. 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..the.ent tliat projects do not proceed.in that locality which is not being met by private enterprise. 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 . hiaxfmum income limits for admission und-for continued occupancy in the project. 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 . shal] require Uie local public housing agency to fi. TENANCY ONLY BY LOW-INCOME FAMILIES This section provides that no contract for a preliminary loan for surveys. PHA in.of. ever}' opportunity is . 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.ev. Some losses iii-comiection with preliminary loans may be incurred by the . insanitary. and (2) the local public-housing agency has satisfied the Public Housing Administration that there is a need for low-rent housing. LOCAL RESPONSIBILITIES AND DETERMINATIONS. every family admitted to the project had at the time of admission nn incjme nut in excess of the established maximum limit. or \\as to be displaced by another low-rent Chousing project or by a public slum-clearance orM-edevelopmcnt project. is made for loans (other than'preliminary loans) or for annual coritribu-.to be given to it to extend its servicing capacity downward in the income scale. or ovcrcrpwdcil dwelling.n an unsafe. however. In the selectioibof tenants for lew -rent housing.financial assistance contracts arc subsequently entered into. 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. these icquircincnts as to previous housing conditions do not apply to World War II vetcians or servicemen of low income. Such contract shall also icquiro reports showing that. tions. For a period of 5 years.

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

It will also make the increased cost limitations applicable to. 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. shall approve the amount of all main construction Contracts before they are awarded by the local public housing agencies. and makes it possible. In addition. SECTION 204.ill and large cities. Because of special cpst problems in Alaska. section also has special provisions permitting higher costs in that Territory if found necessary. any projects which hayc proceeded (prior to enactment of this bill) under iho provisions of Public Law 301. the section provide^ for a higher cost limitation of 81.anil li\ ability. as coruparpd with existing Jimittitiuiis of $1. Subsection (a) relates to this pledge. 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.respectively. the. and where there is nn. per room.. This is in lieu of a present requirement ns to comparison with the average costs of private construction in the locality." HOUSING ACT OF 1949 45 quirement that contracts shall provide hi all cases for meeting the spccificd_pcr rooih limitation. and permit the revision j«" contracts for.2.love income. .-ftcutc need for such housing. 1048. In order that ilio drastic increase in building costs may not prevent the provision.e it would not be fon&ible without such an increase to construct the-project without sacrifice of sound standards of construction.This section also will require that the Public Housing Administration.. on some of which a small amount of construction work was -done before they were deferred.50 in sni.000 and 81.ntially all of tho-capital cost of low-. 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. rent housing projects by tho sale of bonds to private investors. taking Into account the level of construction costs in the respective localities. This will ordinarily permit firm detcrminatio:. not dependent upon city sizcjToTthe cost of Dwelling constniclion and equipment. 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. This will make the increased cost limitations available in the case of low-rent projects which vcre deferred during the war.rttstt. . 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.on constriictiolt cubtsV uiul establishes a uniforfijTcciling. 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. iu tho event there is 447 . It :dso authorizes an increase in this cost liniiuaion by not more than S750 per room in areas \ylier. of housing needed for famijies of . The authorization increasing cost limits is applicable to any Jowr rent project completed after January 1.750.

provided they are not nssisled by Federal annual contributions. am1. will have their investment adequately protected. 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. 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. 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. This subsection also makes.46 HOUSING ACT OF 1949 more than one issue or class of bojuls. 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. 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.possession \\ould be requhed only when PITA detcrinines that this is necessary to achieve the purposes of the act. it provides (Tint in the event there aie two or more jales of interest on such date. rather than the date the contract happens to be signed by PITA and the local public-housing agency. for Itmii or annual contributions.approval of the contract. the project will continue to operate as a -low-rent housing project. 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. and that in no event shall such rate >bc deemed to be less than 13/2 percent. After taking title of . Contracts for projects initiated prior Ui March 1. 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. but not in excess of the amounts contracted for.pursufiht to statute. This lending power could. respectively. Further.part. 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 . which are assisted by Federal annual contributions. the rale used shall be the highest thereof. 1949. 1949. Subsection (d) reduces the maximum loan period from CO to 40 years In tho case of projects whiclunre initiated after March 1. Pursuant to subsection (b). 1949. Conveyance of title rather than delivery of . or redelivery upon-a satisfactory curing of the default). fiom the applicable going Federal rate plus one-half of I percent to simply the going Federal rale.cpvenants to the Public Housing Administration. in the event of jv substantial default by a local public-housing agency in its.. PDA \\ould continue to make annual contributions for the ]>roject. This would assure both (1) that. to pledge appropriate amounts -of annual contributions separately to oath issue or class of bonds. every annual contribnuono contract (including amending or superseding contracts) may provide that. 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 .possession.

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

006 on July 1. 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.000 a year (iri addition to the existing authori/utioh).000 additional new dwelling units may be put under construction without further authorization from the Congress.000 now units. funds required frpm the Federal Government in. .000. connection with. jM-acli^ in the past. PHA'may authorize the construction of not more than 150. where n local public-housing agency is undertaking two or.48 HOUSING ACT OF 4949 borrowing power will make it possible to provide all of the capital. The President is authorized to accelerate or retard the program.000 per an'riuni.f any fiscal year may bo increased at any lime or times by additional amounts aggregating not more than 100.00.cs the . if he finds such action to be in the public interest. by $85.050. and by S~o.0. program of low-rent public-housing in uibiin and rui<xt nonfarm ureas.000. 1949. be treated collectively as-one project. In respect to projects initiated after March 1.000 in each of . ANNUAL CONTRIBUTIONS Subsection 203 (a) increases the 'ublic Housing Administration's annual contributions authorization in order to provide for an extension of th«. such as interest. may be increased al anyf time or times by additional amounts aggregating not more. Subject to the. including the cost of capital improvements made at any time during the life of the project. local housing authority overhead.000 additional hew •dwelling units after July 1. respectively. than SS . 1949. includes appropriate carrying charges. payments in lieu of taxes.050. total additional annual coiaributions authorization of JHH more I him 8400. 1949. in a contract. or be reduced to not loss.OOOjOOO per annum. insurance.000 per luiiunn. and each of such authorizations may be drcrensed at any lime or times by amounts a(. Subsection (j) inakes jt clear that.total amount of annual contributions authorization available to PJJA on or after July 1. commence construe nun which is nuuie u\ailable at the beginning v.. however.gro<r. in accordance with business practice.000 units.000 new dwelling units in 7 years. not more limn 1.the following 3 years.000 units. 1953. •and any initial operating deficit. Subject to the total authorization of: 1.050. authorization would be increased by further amounts of 880. Carrying charges subsequent to the date of physicn1 completion. It inueai.iting not more than 100. 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 units.iction authorization to bccomo a\ iiilable at the beginning of 'each fiscal year could thus bo increased to not more than 250. they may. the amount mndo available at the bcginning-of any fiscal year. 1949. \\lifch. in line with the usual. the -extension of the-low-rent program. SECTION 205.000. Tho const r. This definition. The new authorization thus totals 8400. 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. more lo^ -rent public housing projects. Iri respect to projects initiated after March 1. authority to. thus making a total of 1. may not be capitalized.000.

Under subsection 205 (b). biit the contracts may authorize payments in lieu of taxes not in excels of . or times so that construction of the full 1. 1949> pay^ '. but thai. to permit the construction of lai^iT dwelling units.10 percent of shelter rents. this section provides that the o to 1 ratio shall be used for all families. shall require exemption . SPKCIAI. provisions in the act as to local contributions. but if existing contracts on such projects are not so amended. in the evciit that the full amount of annual contributions cpntr. ments in lieu of taxes (unless alrcadj made in-larger a. Under this. More. 1917.000 units. lo project fiscal years for which the contributions date falls between July I.roju'ct to the beginning of any fiscal year is not fully used in that year.of the projects from all real. local contributions may alternatively be made in cash in an amount not less than 20 percent of 'the annual contributions paid by P1IA. TJlOMSIOXc. could eventually be authorized by him. and Inly 1. As. 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.. This requirement of lax exemption is'in-licu of existing. there tvill be a somewhat larger s. In order to reserve funds for low-rent housing in urban nonfarin areas.006 hew units initiated .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. payments in lieu of taxes will be liinitciLsolclj' to the amounts provided under contracts outstanding on Juty 1. 'head of .MIUKS OF . subject to the total over-all limitations of S400. 1947. ! SKCTIOX 206.000 neAs dwellings. or six limes thegross rent for families \\ ith tluve or more minor dependents. becomes-available.ho family or his spouse) who is less than 21 years of ngc.050. remain effective for subsequent iisu. to projecvfiscal years for which the annual contributions date is subsequent to Ju'y 1. In the event that tax exemption is hot legally available.000 per year and the commencement of construction oh 1.HOUSING ACT OF 1949 49 than 50. nc\v provision. the requirements as to eligibility fui mmilics with a -reKiUvdy large number of children. 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.pread between the ncomes for eligibility of families with few children and thosu with . may also include similar provisions in respect. 1949.000. 1949.and pcrsonalrproperty taxes. such authorization •would. Contracts on projects initialed prior to Mnrciu-1. In addition to the provisions in section 203 revising the cobl I'tiiiL-JJons so at. bat the amount of any decrease would remain .1949. of course.050./ over.on of Si00 shall be given for each member of the family (other than-th. available for subsequent authorization by the President at any time . ill determining family nel annual income for admission an I'Xempl'. contracts for annual contributions on projects initiated after March 1. this section revises. KOK LAIUiK FA.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. 194Q.acts-or of construction starts authorized in. after March 1.

i rcnio\cs the present requirement. therefore.-ctions of this section provide technical amendments to the United Slates Ilousir • Act of 1937. for the elimination of substandard dwellings in connection \\ith low-rent projects. not only to newlv constniclcd' projects on wh'uh contracts for financial assistance an. The other siibsi.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. 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.1 rural noufjivin areas. 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. will apply. principal-worker or workers. entered into after March 1. 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. 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.public-housing agencies under a contrail for financial assistance. This section. large number of children. It is contemplated that no assistance to farm housing will be provided under the "United Slates Housing Act. 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 . w i t h respect to all projects under title II of Public. the various rcquijcmenls of the bill appliiahlc to projects initiated after March 1. The present provisions thus tend to force children to leave the home in order to continue the family eligibility. 1940. which are 452 . as amended. reference therein lo the United ^tntos Housing Act. Moreover. in recognition of the very substantial differences in their respective living expenses.50 HOUSiNG/ACT OF 1949 a relatively..clearanee is now lo be undertaken pursuant to the provisions of title I of the bill. Pursuant to this definition. but who become ineligible if a child goes to work upon the completion of his schooling. SECTION 207. Subsection 207 (d. Subsection 207 (b) makes it clear that contracts for fim ncial assist^ ance shall be entered into with a State. This-exclusion will be . Subsection (c) pru\idi. as -amended. the famdy would nonetheless be required to move from the project.only a temporary matter j since it is limited to secondary wage earners whq are under 21 years of iige. or a State agency only if such State or State agency is itself to-develop and administer the project.an. 1940. The responsibility for slum . Even though this be a tempo_rary condition which will end as soon as a child marries and establishes his own home. 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.-s that.fii-st entered into after sudi date. La\\ (571. It also defines the term "initiated" when used in reference to the date on whLh a project was . shall include all amendments to said n»-t made by the Housing Act of 1949 or by any other law thereafter enactod.

TRANSFER AND OPERATION' OF LABOR TAMPS This sect ion provides for the-transfcr to the Public HQusing Administration. operation of llicse projects under leases or permits and tisc agency funds to pay any deficits incurred in connection with them. 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. the rentincome ratios stipulated in subsection 2 (I) will not be applicable to the occupants of accommodations other than standard family dwellings. Subject to the income limitations of. SECTION 208. any one State. materials.HOJTSING ACT OF 1949 51 required either as a result of the substantive amendments to the net provided in this bill o_r have. of the farm labor camps now odministcrcd?by the Secretary of Agriculture. as amended. and concerned with housing economics mid other housing market data. effective not later than 60 daj-s after adoption of (he Housing Act of 1949. any of the methods provided in the United States Housing. However. Appropriations to reimburse such hinds for such expenditures are authorized. The projects tluit would be so transferred comprise approximately 40 such camps with about l. 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. demonstration. and standardized duncn- 453 . and methods which will permit progressive reductions in housing costs and stimulate the increased and sustained production of housing. The Public Housing Administration may continue the. Act of 1937.000 provided for annual cbntributionsj nor more than 10 percent of the amounts provided for grants. to be available until expended in accordance with all of-thc provisions of the United States Housing Arl'of 1937. Unexpended balances of funds available in connection with such properties will be transferred \\ ith the properties to the Public Housing Administration. SECTION 301 This section autliorix.flic United States Housing Act of 11937. housing under the terms of . as amended. Any of such other accommodations may be reserved for rental "to migratory agricultural workers and their families. and promotion of the acceptance and application of new and improved techniques.-beeu shown to be necessary as a result of experience under the bill. and supply. It may also dispose of the projects to local public-housing agencies in. as amended. These camps wheiuso traiisfcrrcd will be used as low-rent. shall be expended within.uOO standard dwellings and 9. Provision is also made that jriot more tlian 10 percent of the total amount of 8428. and in making available necessary data on housing needs.000 other accommodations. section 2 (1)--preference shall be given familics.of migratory farm workers in the occupancy of standard family dwellings. demand.es the Housing and Jlonie Finance Administrator to undertake and conduct a program with respect to-technical research and studies concerned with the development.000.

educational institutions. The section further provides that tho Administrator shall consult with.laboratory research.) This includes contracts. It also exempts the dissemination of the results of such technical research. and other nonprofit organizations ^. free of postage^ reports and other documents unless a request therefor has boon previously received by such agency.and studios from the existing provisions of law prohibiting. however. SECTION 303 This sectiuii authorizes appropriations to carry out the purposes of the title. and authorizes the Administrator to encourage and assist localities to make studies. When Federal agencies conduct studios or surveys for local bodies. 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 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. 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. and make rccomincndai^ns to. 454 . for developmental research. of urban and rural nonfarm housing needs and the progress being made in meeting those needs. in which undertaken. 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 . as accessary.most useful to industry and to the general public.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. surveys. (Under present authority.disseminated in such form as shall be.n housing needs and markets.-any agency from distributing through the mail. Many research problems are complex and require for their solution a scries of time-consuming successive steps. such laboratories are frequently i-cluctant to tie up their facilities in short-term projects offering ho assurance of completion.upon the books of the Treasury for ah additional fiscal year. contracts-must be performed and payments made within 2 years after tlie fiscal year. . The section further luiilcihp'Iatcs inventories to bo made by the Administrator. and other Appropriate agencies in carrying out the research program. 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. The section also provides that the results of such-technical resoan-V and studies shall be. and plans with respect to their ow. HOUSING ACT'OF 1949 sions and methods for the assembly of home-building materials and' •equipment. educational institutions.

provides for the appointment of a Director to administer the provisions of this title under the direction and supervision of the Administrator. 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. The devices heretofore ^employed and now proposed for Federal assistance \\ ith respect to nonfarm housing are inadequate . 'lessees. supplemented by annual contributions applied tu> a partial credit on interest and' principal payments.00u in the aggregate to any one individual. forunorc than 10 years. and laborer* with decent. 2. The title . their tenants. imprp\ micnt. The annual contributions could not be made available to a farm owner after the farm is made self-sustaining or. ui adjusted farm practices. share croppers. Loans and grants for minor improvements and minimum repairs to farm dwellings and other farm building on farms which. Loans up to 33 years at not to exceed 4 percent interest. to (hi owners of farms which are not presently self-sustaining but which. can be made self-sustaining within a period of not to exceed 10 years. 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. 3. This title recognizes the intimate relationship between farm. housing and the entire farm.of Agriculture. 'hrough a satisfactory program of enlargement. through the Fanners Home Administration. and not in excess of S2.and cannot be adapted to give the same measure of assistance to families living on farms. The amount available in such cases would be limite limited lo T. cannot bo made self-sustaining.therefore authorizes the Secretary of Agriculture to extend.HOTJSIXG ACT OF 1940 * 53 SECTION 304 This section. (hi: form property and could lie secured by the farmer's equity in the farm. 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. 455 . and sanitary living conditions and adequate farm buildings: 1. Similar loans. economy and so places the responsibility for aids to provide adequate housing and farm buildings oil farnis upon the Department. because the special and different problems attaching to farm housing and other farm buildings require special provisions for such housing.A/UU for any one farm or dwelling or building owned by one individual. in the opinion of the Secretary of Agriculture. safe. 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.

. or by adjustment of farm practices or methods. the applicant must show (1) that lie is the owner of a farm which is without'a decent. .private-credit sources whenever it appears that the boi nvcr will be able to do so upon reasonable terms and conditions. and sanitary dwelling for himself and his family and necessary resident farm labo jr for the family of the operating tenant.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.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.acceptable housing niul related facilities. Such loans. 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.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. repayable in 33 years at 4-pcrcent interest.engage. 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. or sharc. so as to bring.USING AND FARMS BUILDINGS ON ADEQUATE This section authorizes the Secretary to make loans. to eligible applicants having the ability to repay in full the sum to be loaned.54 HOUSING ACT OF • 1949 SECTION 401. low-interest credit provided in section 402 is necossar}' in ordor to put-them into a position to acquire and maintain. safe.or local public agency. FINANCIAL ASSISTANCE BV THE SECRETARY OF AGRICULTURE iii order . but whoso farm enterprise is capable of boiiig redeveloped by improvement or enlargement of the farm. and the maintenance of a reasonable standard of living for the owner and occupants of the farm. or without other farm buildings adequate for the type of farming in which he engages or desires to. lessee. For the purposes of this title. LOANS FOR HO. LOANS FOR DWELLINGS ON POTENTIALLY ADEOT'ATE FARMS This section provides for the assistance needed for those farmers whoso present income. as determined by the Secretary.to be eligible for assistance under the title. SECTION 402. With respect to a farm owned by an applicant whose income docs not appear to be sufficient to inake the annual repayments of principal . giving due consideration to the income and earning capacity of the applicant and his family from farm and other sources.(3) that he is. SECTION -103. 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.cropper. State. All loans would be made upon condition that they be refinanced thiuugh cooperative or other responsible . is such that some assistance over and above the long-term. and. them within treasonable period of time \\ithin the group of farmers in need only of liberal credit aids.

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

ixe and corning capacity of the land. .carry out the purposes of this title. SECTION* 40K. necessaiy on most of the farms of the Nation if they are to be improved with adequate buildings. The local committees will also <:c« lily their opinions as to the reasonable values of the farms. including any person eligible for financial nssirtahcc under this title.es the Secretary to ivquiro nn applicant to agree that tho improvements. specific authorization for research and technical studies is contained in tin's section. building plans.advice and information. SECTION 4 0 7 .. ability.typo of housing which will pnnido Jccunt. and similar technical services regarding faun -dwellings-ami other Luildings. and whether the farm with respect to which the application-is made is of such character-that the making of the loan will:-.under this section to fur-. and sanitaiy dwellings for the family of the occupant. Committees of farmers appointed under this section or pursuant to existing law. constructed with assistance muter 458 .liU likelihood of success. 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 . as he may determine. SECTION 409. 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. specifications. Through the provisions-. tht tyj)c ami character of the fanning operations 'contemplated and the -. In prescribinsr Mich standards. without charge or at such charges. mid experience.section. will be utilized. for security purposes. construction supervision. 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. In order to-a-sui-e that such servfccs are rendered consistent with the primary purpose of the bill. This section also autlvorix. i\o will take into consideration such tilings as tlu. The Secretary would also be authorized . 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.this title. to any person. principal!} tho&< appointed under the BankUcad-Jonos Farm Tenant Act. mid'inspection wpujd-dcpcnd upon the character of the construction and the amount of tlralpah. this section it is:i :belic\ I'd that funds made available to eligible borrowers will . his character.go f r -in. The extent of the requirements for building plans. hish. supervision. It is contemplated that the research studies will •include economic.56 HOUSING ACT OF 1049 found necessary for accomplishing the purposes of this title and for the preservation of the Government's security interest. demonstrating and effectuating economics in farm-building construction which are so.of .. technical. safe.

1952. ^ Tins section enumerateso-rtai n powcrs. Actapplicable to programs administered by thcl5ci reiary ol AgntlilturT (. This ="ftion also includes such servicing authority ao collection of clajms and pursuing them to finaljudgment.. and such additional sums as maybe-determined by the Congress from time tr> time to be made available on and after July 1. purchasing.nkhcad-Joncsi. security ]>roperl3' acquired in liquidation of obligations can be disposed of in furtherance of (he-principal objectives oFUio act. .ut: S. and: the lease. 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.these is (lie authority to compromise' _ . -the contemplated loan program begins with 825. such tenants for benefits which inure 'to the landowner. 875. The provisions of'the JGeneral Holit-Scttlcmci. SUCTION .000. operation. July 1.\I>S This section authorizes. respectively.000 to bo available 6n and after July 1.'arm'Tiuant. the Seen tary which arc necessary in the administration of a program of this iype.SECTION 410. 1049.the manner which Jias been successfully undertaken in.112. One of the most'effective devices in (lie servicing t)f loans is the power whij. .000.aiul sale of such security properly on tr>rms and conditions-determined by tho Secretary to be reason able I nder .oySl..ib)"~ are alsomade applicalilt to'claiins-undefthis ti. 1950. connection with loans made uiiden. and 8100.obligations arising tinder ttiis title in. at foh-flosure sale or otherwise.000. Such ad\nncc wojld l>e repaid prinurrijy from llic repayments of principal ami interest on obligations of individual borrowers.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. Uie bidding for and the. Under this section. in an}' court of competent jurisdiction. SECTION* '111. HOUSING ACT OF 1.000. 57- this title. Act.9 .claims and.the financing of loans to farm o\snei-? by means of funds mnde available to the Secretary of Agriculture I y the Secretary of .000. . 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 . nud July 1. LOAN FU.tle. if iicccssar1 . 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.. of property securing obligations under (hi* title. These sums will not exceed 850.the Ba..000. ADMINISTRATIVE PROVfsiOXS '.04. with the assistance of the At-lornej' General and tho Uixited States attorneys.this provision. 1951.-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.to be vcstedin. Of most importance among .* so 450 .. 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.000.

or 284. prohibits any . controversy.1949. to bi> made on and after July 1. accusation. proceeding. from ])r. Jt provides-n fine of not-more than $10. Tilli' 18. for not more than 1 yenr.000 for temporary repair grants under section 404.osecuting or acting as counsel..OQO-»rcspcctivcly. charge. and 1952. in the amounts of $2.000. or not more than 1 year's imprisonment.l Stales. any claiinsj ni. Title 18." 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.'iicy of th.pcr annum for not to exceed 10 years. and additional appropriations for this purpose to be made available on and after each of the years 1950. -and' provides a fine of not inqro than $10.000. or both.. nrrcot or other matter in which the United Stales is a.OOOi and $5. a. section 284.cer or employee of the United States directly or indirectly from receiving or agreeing to recui\e any citiui. years' imprisonment.dOO.. United States Code. andTimits additional commitments pursuant to the same section made on and after July 1 of the years 1950. or both. clahr. ADVISORY COMMiTTEES . 2S.ul provides a fine of not more than $10. It also. powers and. 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.1951. 41)0 . Title 18.000. to those calling for additional annual credits of not more than $liOOO. United States Code.1949.Uhil >. United States Code. respectively. section1 281. prohibits au ofT.500. court or commission. " .ftnd$2>000._ This section authorizes the Housing and Home Finance Adminktrator to-appoint such advisory committees as may be necessary in carrying oiit his functions. SECTION 413. Authorization is provided finally for sums to be appropriated for the research aiid technical services! and for general administration of this..v or directly or indirectly interested "-before any agency. " _ " _ . authorizes an initial appropriation of Sl-.58 - HOUSING ACT OF 1940 that the aggregate contributions or credits under 'those agreements made oh and after July 1. United States Code.tillc of the bill.-person within 2 yi-ars after employmeiu in niiy ag.000. plovmcnt witliin the provisions of title IS.000 or imprisonment. $4iOOO. attorney. or ngenf lor prosecuting.000. section 281. • -'This section also provides that service as a member of any suck mhisory committee shall not constitute any form of service or em-. 1951.000 or not more -than 2.'.OOOj $l>o66.'.{. . and 1952.. section 283.part. will not exceed S50p. duties :uader this or any other net.600. TITLE V—MISCELLANEOUS PROVISIONS SECTION 501.ainst tho Unit ed States involving any matter directly connected \v ith -A hick such person \\ ns so employed or performed duty. contract. or both.ciisationi for any services rendered or to be rendered in relation to am.

•. it.'as amended (whichnow section is added by sec. The amendment to paragraph seventh of section 5136 of the Revised Statutes. thai national banks. Public Law 253..section-of the bill provides n complete exception from title 18. -with respect to any particular.local public^housing agency definitive bonds and. In other words. when secured by a pledge of rights of any such agency under its loan contract with the Government. 461 . 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. account only to the extent of 10 percent of unimpaired capital and surplus.matter which directly involves the depart^ • mentor agency which such person is advising or jn which. and. would be authorised to purr chase larger amounts. the}' could be purchased for the banks' own. _ .provision unless the act of such individual-is made unlawful when'performed-by such individual.HOUSING ACT OF 1940 59 This section -follows title IIJ.definitive bonds issued by'local public-housing agencies in connection' with the low-rent public-housing program. \\hich are now issued without-these special security features. section 502 (aj provides for an amendment of the National Banking Act sp. Without this amendment. 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.provision-. SECTION 502." JIowev<_'i:. made by subsection 502 (a). special-security features would attach to . AMENDMENTS OP NATIONAL BANKING ACT . bill). section 303 (b). 15y reason of the provisions of the new section 22 of the United States Hmising Act of lQ37. and by public-housing agencies in cqniicclion with low-rent housing projecjs. Eightieth Copgress—the jvalional Security . .. when adequately secured.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. and (to the extent permitted by State laws) State member banks of the Federal Reserve System. The pi o visions of this section of the bill necessarily must be broader so .grants exception from such . 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.United States Code. section 284. relates to short-term obligations only when they are classified as "investment securities. 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. 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). 204 (b) of the. Special security features would also attach to short-term notes issued by local public agencies in connection with slum-clearance projects.this.Act of 1947—except that. Therefore. .such department or agency is direct!}' interested. whereas the National Security Act . to underwrite.• In recognition of these security features.

as had beciLpreviously authorized 'bJVlIIA.60 HOUSING ACT OF 1949 SECTION 503. 1948.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. 1949 COl: "ORATIONS CORl'oRATIONS . public housing represented only a small poidon of its total responsibilities. The conditions to such conversion aio («) a contract for State financial assistance for such project was entered into on or after January I. 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). J948. 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 .limitation in order to permit the recruitment of the (mined personnel which \\ill be necessary to put the new program into operation. Under the expanded program of low-rent public housing a relative!}. arid as will be authorised hi the future under subsection 205 (b) of this bi'l.greater number of trained technical employees will lie rcquhed than were necessary under the former operations of the rp'. 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.tal number of administrative employees. These provisos of the t\\o appropriation-acts are therefore repealed as of the beginning of the fiscal years for which they apply. 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. This suction also repeals tliis 20-pcrccnt. AND THE GOVERNMENT . and the Federal Security Administrator or his designce. This restriction had the efl'cct of prohibiting payments iti lieu of taxes equal to 10 piTi-e-ut of shelter rents. and prior to January 1.-iu-y when low-rent. (b) the project. SECTION 504. ' 50G. 1950. DEPUTY HOUSING AND HOME-FINANCE ADMINISTRATOR This section provides for tin.of the National Housing Council in the Housing and Home Finance Agency. to low rent housing assisted under the United States 1 fousing Aft of 1937. SEC1ION 505. SECT. 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. shall be included in the membership. uiuier siHHJfiod conditions.-APPROPRIATION ACT. and who shall perform such other duties as the Administrator shall direct. AMENDMENTS OF THE GOVERNMENT APPROPRIATION ACl. NATIONAL HOUSING COUNCIL This section provides that the Secretary of Labor or his dcsignco.

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

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

" . in connection with a low-rent housing . siiljsecinent to ph\sical completion. a minor shall mean a person less lhan. (G) The term ''administration ^ means an\ or all undertakings necessary for management.$100 for each minor miembtr 6} the family other than thc-head of the family and-hi. going Federal rate shall be deemed to be not less than 2% -per centum. ' " . and prior to July 30. the District of Columbia. and other utilities) of the d. (12) The term "State" includes the States of (he 'Union. a public hou. or (6) all or. design.it^iilc buiUling walls (including . income" means families who arc in the Iowcst= income group and who cannot afford ._ (S) The term "nicjuisitiuii eo-. light. flwrf who shall have-been discharged or re. sidewalks. «/ '><j a pv'^ii. lack of ventilation. oj admission. enough' to cause private enterprise in their locality or metropolitan area to buihl an adequate supply of decent.' of icatcr.to pay. determined.*'ng •agency »nji/ allow.subsection. ai"l tn nlhcncisc tarrying out the devcippniint of such project... ' (9j The term "noiuhvelling facilities" . ON ercruivding.lcastd thcrefrorii under conditions other than dishonorable.igency in tciiuiring a low -rent -housing or slumdearnnce project. and facilities located u.\und-ihc point of physical completion. and sanitary-dwellings for their use. of the Federal Government having a maturiiy of tun jvars or more.\cluding the Authority).0. an eremption far-each minor member of thc. The. in the case of loans 01 iinnual contribulionn. municipality. 4.21 years of age. gas. [financing (inchming payment of "carrying charges).t" mean. 10/. or other governmental entity or public bod. dependencies.ca where dwcllings-. 'or continued occupancy.eci -sarv. anv i>rojcct owned or-administcred by the Authority. or ir. 19S.65 . .orals.. rcs.tu the ret ^instruction. does not cffeed fiee'tiines the annual rental-(iiicliiding the value or cost to thei. from the -ncl income of rni/'/tuniYj/. Constructior .>f.the sole purpose. the highest thereof} specified in the [then] most recently issued bond.acti\ity in cpnncctidii «itli a low-roiit-housing project ma\ be coiifined. but-not beyond the poinlof physical completion).it reels. remodeling. less an 'exemption . For the purposes of 'this . or repair. or .of low . the amount prudently required to be expended uy a public-housing . a'nd-saniiary. is to lit. faulty arrangement.prcdoininatc which. by reason of dilapidation. (5) The. safe. (10) The term "going Federal rate [of interest]" means -[at any time] the annual-rate of interest (or. and the Territories.ico/i>c/y. improvements. nf //if dale oj Presidential approval of the contract /mrsxtiut to whu. under the applicable laws of th* Stale. health. annual income of such minor. financing. . utility. (7) The term "Federal project" meant.s who has served therein on or after September 10. winch is authorised to engage in the development or administration of low-rent housing or shun clearance. operation. or State agency makes application for snch assistance for an eligible project which.[pr slum-clearance] project[.of existing buildings. (4) The term ' slum clearance" means the demolition and removal of buildings from any slum area. agency in such undertakings and : Ihcir necessary financing (including the payment of carrying charges. maintenance. W/. housing. term ''development" means any or all undertakings n. term "serviceman" shall mean a person in the active military or naval service of the I'nitcd Slat. are detrimental -to safety. For . (2) Tlic term "families. That for thc-piirposcs of this Act. thi.equipment. or. but not bi. any pqrtoftht. by such Stale or Stale agency. demolition. county. construction.family (other than tht-hea'd'uj 'the 'family and his spouse) of cither (a). (3) The term "slum" moans anwar. in connection \\ith a lowrciit-huiiMiig ur-nluiii-clearancc project. spouse.of determining eligibility .v ie. if there shall be two_ or more such rales of interest.shall include sito devi! pincnts. of the United Slalis at any lime on or after September 1(1. 5/00. other heating and making fuels.63 time. The Authority shall enter inin contracts for financial assistance with a State or State agency where suck Stalt.HOUSING ACT OF 1949- ' .-cllings to bc-furnished such families.! lain! ac< 'nation.7. (1 1) The term "public housing agency" means auv State. or. . and prior lo July 2fl. aiui-ui'ier facilities).]' The term "development cost" shall comprise the costs incur. (•M) The term "tcttrun" shall mean a-pcrson w'Ao has served in the actirc military or narnl service. 10^7. or sanitation facilities or anv combination of these factors.li such loan* or contributions arc made: Provided. for planning.0. developed and administered. and possessions of the United' (lu) The term "Authority" means the United States Housing Authority created by section 3 of this Act. drctriril'i.

\.. reserves. conneciion \\iih aiiy such lio. or title held by any department or agency of the Federal Government in an\ hoiisii.Iliu Unitei^Slutes or b. .ation of such sen ices. may designate. cuinty.. neither the Administrator nor any olliecr or . State.Vet the minimi salary of which ia in excess of S7.ilhicUvi or in process of construction un the date of enactment of this Act). authorized.5.this Actj..gJincd i'i uork connected w i t h housing ur slum clearance.v. issued by public housing agenda in connection w i t h liiu-reia-hoiijing or shim- 4B6 .v. (lj) Appointment to positions made under the provisions of this.but-for ho-pthcr cause. records.v ati. Tli'. (d) Thu Authority shall be granted the free use of the mails in the same manner as the executive departmcnta-of the Government.respect to such^projccl entered into by the Authority find-the "public housing agency.tlie purposes of . including interest. rusunrch mutcriftls. cqiiipincut.v Stuto. including but not limited to its franchise. income. any assets.to the civilservice laws lie may appoint such officers.-) or by such agents or agencies as it in".(15) The 'term "initiated" whenitsed-in reference to thc-datc on which. The Authority ina. and shall bo rcprcsen'od in all litigated matters by the Attorney General or such attorney or attorneys as ho. except that without regard . subject to-thft civil-ser\ice laws and the Classification Act of 1923.64 HOUSING ACT OF 1949 _. vocation. UNITED STVTKS HOUSIXO AUTHORITY ^SE.000 a year. shall be exempt. " ' .>flico of the Authority shall be in the District of Columbia. or local taxing aulliont. conduct hearings or negotiations at any place. Obligations. or-em. administration. (c) Tlio_\utlH)ril\.d seal.500 per annum shall be subject to confirmation bjvlhe Senate.C.iairator shall receive a salarv of 510.pctiia] duratiohjo-be known as the United-States Housing Authority. a* amended. it mav t-stablinli branch uflices or agencies in any State. (c) TJic Admin. agcncj concerned may utili/. (a) The principal .. (c) The Authority shall have an ofliLi.jerformance of tlie duties of the Authority under this Act. surplus loans.shall sue and bo sued in its own name. a^projecl uas initialed refers to the date'of'thejirst contract for financial assistance in. and property of un. designate.ny contiiuic anv or all activities niuU-rtakcn in connection with projects so transferred.vees \\Iio have been ei. 3.-.shall participate in any -matter affecting his personal' interests or the interest of any con>oration. 'to. aiii unexpended bnlanci.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. or association in which he is directly or iiidircctly interested: Stc.Authority ii.g or sluiu-clcarancc projects (con. and may exercise any of its powers at any place within the United States.i f ing or sluiu-clcaraiice projects or acti\ ities. interest.asset*. . 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.9SO per annum. who shall be appointed b\ the -President. employees. subject Jo the provisions of this Act. and information of any agency . shall be-cligible for reappoMiiiiient.heruaftor imposed bj. partnership. thereon. (a) There . Jn connection \\ ith the titili/.of the Federal. iminicipalil.powers of the Authority shall-'be vented iii and exercised by an A\lininistrator. or local governments as hu findt helpful in the performance of the dutica of tlie Authority.\ kind. capital. SKC. in excess of SI. 4. or assistance of an\ hon=inj: or sliim-clearance projects or activities.. but. the Authority may make reasonable payment? for necessary trailing and other expenses".employee of'the Authority . and experts and siic'i cinpluyees \\ lio^e compensation i. from all taxation nuvv or. as.\vhich ahall bean asency and:instrumentality of'the Uiiitcd'Statte!. (a) The. (b) The Authority . (b) The .e such officers. libraries.pToyjuent. (d) The Pr»sident miij at any time in his discretion tr. atid other property held it. and shall hot engage in any other business.. of funds allocated to such department or ageuc\ for the development. and any cmplii. Administrator is.insfur to-the Authority anj right. appoint and-fix the compensation of such employees iu> inav be nccessarv for the p_roRcr . attorneys.nay be necessary to carry-out.. cuntracU. which shall bo judicially noticed. : (c) The Administrator may accept and utilize such voluntary and unc^mpciisatcd scr\ iccn and \\ ith the consent of tin. by one or-more of its'Officers or employee. by and with the advice and consent ofjhc Senate.

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

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

at spceificd rrnls. shall extend the following •preferences in the sclcclinn of tenants: l'!:sl.c million and fifty thousand dinr. hundred thousand dwelling units. »"ni/ be incrrg&ed at any tune or times by not to exceed in any fiscal year an addit. And provided further. to families tciiiih arc to be displaced bi/ any lotrj-rcitt hoiming project nr by any public •iliitn-rlrarame or rcda-ilo/nncut project.000. "id 1952. and any such authorized increase therein. to/cntcr into contracts \\liich provide for annual contributions segregating not more than $28.000.than $85.vond those herein authorized shall be entered into b\ the Authority. . for annual contributions aggregating. 1953. 19.'. not more . 19. IQ. rt of suJi increase upon conditions in the_ building industry and upon the national economy. Tho term "any loan due to-(lie Authority" ns used in (his section shall n<< •" •.-o appnpriaicd. That (subject to the authorization of not to exceed one million and fifty Uiousund dwelling units) such limit.^ual amount. respectively..-•>. including 1955. 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. (f) IVi\incuts under annual contributiuiis contract* shall be plcdgud as security for anylJoaiih obtained by a public luin. sentence of this. ai./ lowrent hi *i»j project initialed after March 1. no nc\v contracts for nnniml contributions bi.000. That (siibject to-ihe told additional authorization of not more than $400. With respect to^projects assisted pursuant to this Act. of . loan made b. and scroud preference shall be 469 ./. 1949. With respect to projects initiated after March 1.000 ^cr annum.000 upon a determination by the President.J as among-suchfainilits where an a/i/illi-atiim fur admission is made i nl later than fire years after . years after such amount uf authorization becomes available. to enter into contracts.000.re than of.000.lKnrj units without J»Jhcr authorization from the Congress. out of any money in the Treasury not <ither\\i.000 per annum) such limilj and any such authorized increase therein.000. That contracts for annual contributions with resncct ia low-rent housing projects initialed after March 1.all annual contribution* contracted for. shall not provide for the dcrclonmtiit of in(. the Authority may authorize the commencement of construction of not to exceed one-hundred.on July 1. may be increased at any time or times by not to exceed in any fiscal year an additional one hundred thousand dwelling nnitf.HOUSING ACT OK 19-19 67 of loans made out of .'i9. Without further authorization from-Cungi•. niul there !•> hereby authorized to be appropriated.y further amounts of'one hundred and fifty thousand dirclling^iniiton Julyj in each of the years 1950 through and. and fifti.bt decreased at any time or times l>u not to cjre-tcd in-anyfisetil year one.pursnant tu this Auction. respectively^ Provided.$80. The-faith of the United Status is solemnly pledged to the payimsut of. shall rtnitirc that the public •housing agciicii.000 on July 1 in each of the years 1950. the Authority (in addition tj the amount autKorized-by the firs. which limit shall be increased by further amounts of $80..000 per annum.. 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. first preference shall be (lircn to families «/ disabled veteran* whose disability has bcni dcttrminui bi/ the Veterans Administration to be scrijcc-coniicctcd. That 10 pcr. af thrc*. icith the approval of the President.such capital and funds) shall not b<_ available for the payment of such-annual contributions. upon a determination by the President. the amounts necessary to provide for such payments.ccii nn of each amount of authorization to enter into contraclsfor annual contributions becoming available hcrnndcr shall.\ 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.subsection) is authorized. thousand dwelling units after July 1. as among loin-income families which aic cligi'ili n/.that such action is in.sitiK agency to assist the de\ulopment . 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 jirovided further.'iO. 19Jtit.'iO.it areas. on and after the date of the enactment of this Act. afar receiving advice front the Council of Economic Advisers as.the publ^ interest.to the general erf. (c) The Authority is authoi^ed.ujs for occupancy in-dwcllings of <jicen sites ami.?<i. and by $75. be available only for annual contributions contracts with respect to piojecls to be heated in rural nonfat. 195{.Vnrc/i 1. for-a period. on and after July 1. 19. which limit shall be increased b. Provided..T aa/uLlion of the housing project to \\hich the anniinl contributions relate [: Provided. that such action is in the public interest. or may.000..in each fiscal year.9.

inliou liy"demolition. shall .\cccd 2. h<nrn'. at least' 20 ptr centum .-cction la) <if ihi.MilxilantialK u|i.n project.-luin-i. i/i/int/i the piittic housing aijincics and the. 1047. or the coinpulforv repair or improvement of iiiiMifo or in>. In respect to such loir-ie.'. (n> As nu nllcrnaiise inuiliod of a^-itiniico (o (lin.9.. The capital grant* tlm. 11. such project is not exempt from all real and personal property taxes levied or imposed by the Stale. i>ro\\<\ctl in -SCCH'OII 10. -> •CAPITAL CHANTS IN" ASSI^TAXCB OK LOW RKNTILS SKC. loflcth. in the form of cash. In resprri-to loic-rcnthousing iirojrct-i initinlcd prior lo .-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 •/«.'iD.. its lowrent. (li> PurMinnt to Mil>.-Miancc of nbliftaliou.-ojccl unless and until the Stale.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. ~ __ Second.Mn-iiun .l'from-all real and personal proj-erly taxes levied or imposed by the State.liuu. .> tin. W-'fi.-hn!l \n.> of the principal of loans 470 . or .'/!).i so acute as to force daiigeronsovercrowding of such families]!.ion.-afc. That.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. PmviJid. sucli contract -inay provide..inadi. .it no (..iiiirsiiaii to . in lieu of the requirement for lax exemption.inil:ir. TIi.-^ituatcd in the locality or '^i-trop ililan arua. puyme. in the 'ncrclion of the Authorit\ r l)i^ defi.-iiig ngunc.ti-ing or shiin-tlcnrancc project.nt-hr. Co All pn. xo as lo rcijuirc ixemnlion from real aii.uxinfi iirojiil.mly. sliall lip Hindu for the development-of un> lo«-rciit li(ni. by reason of conitilulio'ial limitations or otherwise.icd throiii:!h the i.s available to the Authority. lO.v nient.-rrnl in an> lucnlil-.of the annual contributions paid by the Authority.71 -such project: Provided.n ancl demointrates to the sat^faction of the Autln/ni\ that MU-1. in amounts ichich.-^ar\. capital and its fuiivls ohUii.duM'lupincuL or aciiuMtion. 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. of disabled vclrrans ivhose disability has been determinedly the Veterans' Administration to be scrvicfrconncclcd.-i init^iti-1 pr'ur In March /. conn.-.-> (lie climi. or other pylitical subdivisions. 10.--lricll\ limited to the .contract made pursijunt to. iiAohiniylie con8J. citii. the Authority may. . wilh respect to any such project to be located in any-Stale where.v or metropolitan nrjn where tne . iu-.of llifc Act.\ d\\( !ling> .-. to a&i.r with amounts already paid.l contributions far any lotv-rcnt housing project initialed-afti r Starch 1.J0. \\lien au.i luv.preside that no annual contributions-by the Authorili/ shall'be made available for such project unless such ' •project is net j. or other •political subdivision.-linll in no case e.carat.r March 1. to families of other veterans . charged .niution of . (.apiial grant.grcatcr of cither CO ~> per centum of the shelter rciits charged in such projects for each nf such project fiscal years.an-application for admission in made not later than fire years aftt. or in the ordinances or resolutions <i/ such political subdivisions 'n effect on such t''itc. cu.\cc]jt that Midi climinaljon may.s iroxidi-d 1<\ the projcd.« trhich thr projects are 'located.'.-rciil'liuiiaiiii. except1 tli. clinfactcr [.>hall lie made out jf anv fund. fur an.or otlii r politi\ i! subdivision in tF/iiYJi such project is sit'ialed shall contribute.lh's Act-for anntn.a) in iminlier to tin number of ne\\l\ (oi^lruc.lri' dwelling unit. in effect July 1.1 ho.-» development or aco.atioii.50. (h) Every . l9JfO.i.i in effect July 1. will not cjcccd thc. or cauitnr\ housing available to familii.iisition cost. n l t u r n a t i \ u inctliutl i? liultur ./. and as among such families first preference shall'bc .iuu ilufllin^.project hull lio pnid in t-uniiuclioii \\ith it..inn\ bo made to Mich agcncv fur such purpose. in llic nr»l that (he conlracl.snitcil (o tin purpose of flohiuN ing and maintaining Ion rciitaK aid lo the other purp(>?< .->iiii.\ pulilit. .iinount> iiu(T. the Authority may make a capital grant for anj h)\\-ri . condunination. •given lo families. /.section 20 vinclnding re|iii> inents or tithcr rcali/.t fof aniuiil'conlribulions arc not so annulled.-> fcct.7. JO. unlc---.of low income i.shortage ol decent.project iii(Iml<>. and elfuetiso eliding. county. cajntnl grant:. that no-annual contributions by Ilit Authority shall bc_ male ariilablc ftr such p. 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 .">-per centum of ii.i 1.'. city..\ nu Fui|iicnl. and .Vn/r.and servicemen (im-i'iding families nf deceased rcjcrans 01 .68 HOUSING ACT OF -1949 - - given to families of other reterans and servicemen (Including-families of deceased veterans or servicemen).i. in the determination of I lie Authority. <y (if) flic amounts specified in the cooperation agrttmcnt.tcrriciiucn) ichcre.l iicrsunal properly taxes in lie. or nliiin-ilcaraiirc.. city./r /.i of capital grants l\v the Autlioril v pnrMiant to Millet tion U>) pf thj.political subdivisions . lO/fl. vvhii'li-.

pursuant to this paragraph. DISPOSAL OF I SUEIIAI.] aupual [contriljiltions ]Jiraiiant to section 10J contrilw- 471 . That such additional capitaXgrant sliall not exceed 15 per centum of the development cost of the low-rent-housing or slum-clearance project. political subdivision thereof. 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).-. 12. in order to continue the relief 61 tlu Nation-wide unemployment and in order to avoid waste pending such sale or lease. 193'. The lessee of any project. on or after the date of the enactment of this Act. ~ (u) In the adininist ration of an. " (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 . 'f"an. phis such additional amounts as the Authority shall dc UTinin . rOWKItS OP TUB AUTIIOKITY t SKC..000. (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. 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. The Authority limy bid for nnd pjirchasc at any forcclosuro by any party oral. than $10. from the State. contract. PROJECTS _ SEC. in u hole or in part. less such allowance for depreciation as thu Authority shall fix. iii~wlratcvcr furin may be satisfactory to the Authority. (c) To supplement any capital grant inadcby-the. (c) Tlie Authority may sell a Federal project only to a public housing agency. of community facilities pr services for which a charge is usually mmle. and cither annual contril iiitiont pursuant to section 10 or a capital grant pursuant to scnMon 11.not inorc tlian 810. to a public housing agency. 13. or (pursuant to scclion-23 or o//icnmc)-[othcr\MM-3 acquire or take. no capita! grants beyond those herein auth. 1938.further authorization from Congress. title 40. (d) Tim Authority is authorized. (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. 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. Am such sale shall be for a consideration. in lieu of taxes. a contribution for such project (in the foiin of cash.capital grant shall also receive.iy in connection with the development of any low-rcnt-housihg or slum-clearance project. to provide for the completion and temporary administration of such-projects by the Authority. and oh or after July 1. S. operation. shall assume »nd pay all management. and maintenance costs. if any.capital'graiits. 303b).000.. or tax remissions or tax exemptions) in an amount not less than 20 per centum of its development or acquisition cost. (b) As soon as practicable the Authority shall atll iu> Federal (jrojccts or divest itself of tlicir managements-through leases.this section) aggr gating . or otherwise. niaimgetiient.000.orizcd sliall be made by the Authority.69. to make additional capital grants aggregating not mor. 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. on or-after. and. 321 of the Act of June 30.at tlieguing Federal rule of interest.000.). made out of such capital and funds.AutIipi. . the President may allocate to the Authority. 1932 (U. shall not apply to any lease pursuant to this Act.^y the Authority through the sale or leasi-g of such projects as hereinafter :providcd.000.•j HOUSIXG ACT uF 1949 . operation. from any funds available fur the relief of unemployment. together with payments.capital grant tc be expended for payment of labor used in siich devclopmeiit. to make capital grants (pursuant to subsec.capital grants aggregating nut mure tlian §50.-to-inake additional. the Authority shall TIN the rentals nt the amounts necessary to pa^' all . or other agreement.000. an additilnal .' in lieu of taxes. arc consistent u i t h muinlaining the low-rent character of such project. sec. Without . pr the value. capitalized. (d) The Authority may lease any Federal low-rciit-housing project. OKXK1UI. Jiily 1'. together with pay incuts. Providid./ shall not be available for the payment of such .v Federal low Trent-housing project. anj other sale. pending sale ' or lease. and maintenance costs. (b) of. land. C. Such prbjci t shall (hen become eligible for loans pursuant to scctioii 9.involved.

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

[With respect to housing projects on.it.initiated costing] equipment of not to. and npiidwclling facili'Jcs). grants. at the request (. will pay.c Authority sliahi retain tlip-right..lit.cd to make capital grants.the liinita. soccifiailly approved the amount of such wain construction contract.000] £?.shall make loans. in thc-cvunt of a substantial:breach of the condition "(\v]iicIjv»liaH be.into by the Authority with respect to • anj low-rent huiisiiig proji-ct [hereafter initiated costing] complcteil tifler _ January J. or any other agreement -or instrument made pursti.h agency.t.OOQ per family duolliig unit or more than §1.embodied in such contract) pro\ iding for the maintenance of the lojv-n-ht character of the housing . [and (b) that the a\erage construction cost of the dwelling uniU (excluding land. ihe population of which exceeds 500.000] $1^50 per rooin (excluding land.usLlimilalions which may ejected bij not more lha» $730 per room .mi amount of any capital grants. such. other covenants.aniL.cd by this Act arc calculated..HOUSING ACT OF 1949 - 71 (3) When a contract fur animal contributions is made pursuant to section 10.. The receipt of capital. opcn> space or playground in . inay.-s thereof bcaro to ./n«/-design or materials.. or annual contribution:) for luu-rent-housing or sunn-clearance projects. payable under such contract. involved: Prowled. in the locality or metropolitan area concerned.\i Inch construction is hereafter initialed. That any snch'0.000. and nondwclling facilities) in any such project is not greater than the average construction cost ot duelling in its currently produced by private enterprise. loans. demolition.. (-1) The Authority-ma.contract -may . than [SJ. or of any other section of this Act.. 1949. tli. JO. the] The Authority . and (if) Mart./ low-rent housing project initiated after March J. or cause to be paid by the Stacc or political Mibdmbion.oridcd.\laska [any city. to a project. the Authority Is authori/. sale. (5) No contract for any sloan.be entenid into with respect. and economy will be promoted both in coiioiruction and administration.['a)] that such projects will-not be of elaborate ur-[c.'such agency. loans. it to this Act.connection with the housing project.] In order to attain the foregoing objciticc.3 .o00 [per fainily dwelling unit or not to exceed SI.dceii iiecessary in order to insure the low-rent character 1 of th? housing project. of capital grant ivmde pursuant to this Act shall ib"e entered . having at cost for construction and equipment oMnori.-. or annual contributions by .'ions-thal icould otherwise lie applicable to such project hcrcnndcr. and under labor standards not lowcr-thnn those prescribed in this Act. of any sums previously allocated pursuant to this \ct. necessary by the Authority for the safety or health of children.cond:tioiis. loans. shall have.. involved if deemed. demolition. exceed:[$5. except that in the case of . upon cowl (ion H. main construction contract for such . 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. That' the amount. (G) Notwithstanding the provisions of subsection (o) of this section.project involved.y manner including a bpna fide foreclosure-under a mortgage or •other-lien held-by a tliifd party.. such animal contributions shall terminate.<.^Ksign. he may prescribe in such conlrt-ci •. or provisions-aa it.n of Mich project by.such a\ cinge ai tunl cost: Pr. also insert in any contract for loans. having a. mortgage.abiliiii.a third party in ac.250] per room (excluding land.jcct without sacrifice of sound standards of con•alruction. demolition. grants.itions authori/.capital grants.. In the event of the acqiiisitio.iiiy public-housing agency pursuant (o this 47.bhtract for~a:substantial loan limy contain'a condition requiring the maintenance of'an. 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. is.'iS.iojccl shall be made unless the Aiilhorili/.cosljor construction ami "[hereafter . of any such pay incut shall be excluded from Hie base on which the maxim.f-siic.]: any such . annual contribution. to reduce or terminate thr annual contributions. annual contributions.«/rti. public housing agency. or annual contrib.\cc. under the legal building requirements applicable to the proposed site. taking into account the level of construction cosjs prevailing in the locality where such project is to be located. . to a'1.il contributions only for sucli low-rent hoiiMng projects as it fiiuls arc to be under taken in sucli a manner .. nery contract for financial nxsislancc entered into with respect to an. leesc. shall proridc that no award of the. 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!.:i: acute need for such housing. in the full amount. and aiinii.\peiisi\c].

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

270a to 270(1.. 137). and section 3 of the Act of August 24. 1934 edition.... 1935.the Authority ic. C. title 10. alteration. 1935. draftsmen. aiul employees of the Authority. which shall bo subscribed by tlu United State* and paid b\ the Secrelarj uf thu Treasury out of 475 . 17. 10. SKC. and repair of any public building or public \\ork of the United States to be accoinpai.< after (he close of each calendar month. in Jicu of taxes.report in like manner (within five da). the Jilcrminaiio" nf the amount c. 1935. Scerelnry 01 LaLur.' the 'joan. II.>nore projects. and shall cause all subcontractors to. FIN'A.\ .. may cover one or more than onjf loin-rent _.000. Supp.connection with the development and administration of jpcdcral projects. or for the District of Columbia. „ " HOUSING ACT.a perforiimnce-bond protecting the United Stntcs-anil-by an additional bond for the protection of persons furnishing material and labor for the construction. both.ied. (5) The provisions of sections 1 and 2 of the Act of June 13. as to the number of persons on tla-ir ii'specli\c pay rolls on the particular project. (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 .in such contract).w United States suffering injuries \\hilc in the purfunnancc of their duties. the aggregate amount of such pa> rolls. as determined or adopted (subsequent-to a determination mider applicable State or local law) by the Authority^ shall be paid to all architects.. such ._relatii)g to the rate of wages for laborers and mechanics cmplo\ed bv contractor^ and subcontractors on public buiMings" (49 Stat. as amended (37 Stat. fixed by. housing-project o • <icd by said-piiblif housing-agency. 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. annual contributions.by. entered. C. . S. title 40.entitled "An Act requiring contracts for the construction. shall apply to any low-rent housing or slum clearance project financed ii. 1934 edition. and for other purpose ".families-shall be required to move from t h e project. thai the net incomes of any such families havf:incrcascd beyond the maximum income limits. shall apply to contracti of the Authority for work in.nol limited to.•(8) Any contract for loans or annual coiilt Millions.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. In. aniitial contributions.ork done for the United Stat s.~ be treated collectively (is oncyrojccl.• . spccijied. \\huluur in part uith funds made a\ailablc ]>ursuant to this Aut.houting agency. entitled "An Act to Amend-the Act approved March 3. . laborers. int6_by. 1934 (U. or payments. _ •. 1011). or repair of said public buildings or public work" (U. The Authority shall have a capital stock of $1. 712). the total man-hours uorkud. and itemized cNpcnditurcs for materials. iiiclushe). ' . and the Authority • my rcqui. on forms to be furnished by the United States Department of Labor). and for other purposes" (39 Stat.order to protect labor standards— (1) The provisions of the Act of August 30. capital grants. occupancy^in such housing."!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. technical engineers. and if. technicians. such projcus may. 27Cb ami 27Gc).uthorijty and that the Authority shall itself perform the duties prescribed by section 3 (a) of the Act of August 30.il is found. the public housing agency (and approval . upon such reeramination. alteration. Lut. sale.000.VCIAL rilOVISIOXS - SKC.of sitcliC'/nlracl (including. sees. (2) Any contract for loans. and of the Act of August 24.OF 19. (3) The Act entitled "An Act. 1935. or for any Teriitorj. for anyof^thc purposes of this Act and. (1) The benefits of the Act entitled "An Act to provide compensation for employees of C. and mechanics employed in the development or administration of the loyv-rr:it housing or slum-clearance projcctjn\olved. 193J.limiting tile hours of daily scrvi :es of laborers and mechanics employed upon \v. in the event such-contract COJICK tuo^or. shall extend to officers . sees. .by the Authority) for continued -. That suits shall be brought in the name of the . or lease pursuant to this Act shall contain a-provision requiring that not less than the wages or fees prevailing in the localitj. 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. u. S.

000.forvhuiising or slum clearance may. Such notes 01 -other ollin'.ng. £(. There is hereby authorized to be appropriated. $• jjcrl to such terms anil wititiliomi us maif be prescribed bu thr . subject to check.ale <lclcrininc<l lt>i the Secretary of the TruiKurif.iditionally guaranteed upon their face by 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. 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.»f obligations of the United States.tary of Hie T't -isunj m an amount not to exceed $1.. Such italic oi-ulher alligations shaK-fa.' and all receipts and assets of the Authority. shall haw such mnturt!it-. from all taxation except surtaxes. Such suhi. The Authority may issue Midi obligations iivan amount not to.nltrist at a . or otherwise. SKI. and sales b* liim of such obligations shall be treated as public-debt transactions of the United-States. inheritance.. and the purposes for whicli securv'ics may be issued under such Act. extended to include any purchases of such obligations.radon tht. county. The Secretary .exceed' 8800. lie) Such obligations shall be full* aiid uiicu. municipality.000. iitilizint.sc . estate. shall be available for the purposes of tlib Act until expcndf'. Lib) £Voh obligations shall be exempt. ng al any one lime notiA.iiPJrest hot exceeding 4 per centum*per annum. mature within such periods not exceeding sixty years from . rt* amended.iberty Itolid Act. bond. SKC.iscsf. 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.(litions. t. of both interest and principal.lionsfor •/iiirchasc by /. be allocated to the Authority for the purposes of this Act. and. the sum of 826. Authority may i^suc and have. L'niled StaUs us of tin.nrrci..itwns sit til IK in such forms an * iniimilionf.:>.rt.000 shall be available to'pa* the sub-* script ion to the capital stock of the Authority. purchases. 20. in the event that the Authority shall be unable to make an* such payment upon demand **Iicn due. of the Treasury may at any time. Any funds . tahing into ioH»iJt. till the facilities of the Treasury Department now authorized b. trust.] The.000. i.«) Such obligations may be marketed for the Authority at its.74 HOUSING ACT OF 1949 any u*aijablc funds..the discretion of the 1'rcMdciit. and the inirp. out of any money iiv the Treasury not otherwise appropriated. as a'.\«<hvri. bear such rates of. exclusive of an* obligations which may l>c issued for rcfinming purposes. purchases. acquired by him pursuant to this section.V Sn. IS. 1938.thr n ^roval of the Secretary of'the Trcaxury.date of issue. arc extended to include any sucb ^purchaserTile Secretary of the-Treasury ma* at any time sell any of'the obligations.. be subject to such terms and ci.Secretary of the Treasury in likewise* authorized to purchase any such obligations.available under any Act of Congress for allocation.. which it may sell to obtain funds for the purposes of this Act.rctiucst b* the SccruUi'ry of the Tjcasury.. All rcdeiniilinns.. and gift taxes) how or hereafter imposed by the United States or by an* State. oiilstand.'bbth as to principal and interest. SKC. Hli.nsucd under such Act. 21. The .* Vaw for the inarkct. and fur such purchases he ma* use as a public-debt transaction the proceeds from.and shut) lit. and all rcdcinptijii-.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 /. (n) Any monoy of the Authority not otherwise employed may btr deposited.. as amended.as to the payment. The.000. arc. . in .. |(c) The Authority is authorized to issue obligations in the form of note*.the snip of any—i*ruriti(a> hereafter issued iiiiJcf the Second Liberty liv-nct Act. sell any of the notes or other obligations acquired by him under this section. 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. Such obligations shall be in such forms and denominations..iemfcd. with the Treasurer of the United" States or in'any 476 . lid) Such obligations shall be lawful investments and ma* be accepted as security for all fiduciary.-. Receipts for such payment.and oilier ofc/.500.000.. SKC. '«s amended. 19. and sales by the Secretary of^the Treasury of smh Milts or other obligations shall be treated as niiblic-debilransacliojut of Ihc United Stales. Secretary of (lie Trcaxury is authorized and directed to //«r</m. last day of the month preceding Ihc issuance of the notes or other obligations by the Authority.000."u. of \\hich 81. To the extent of such payment the Secretary of the Treasury shall succeed to all the rights of the holder.000 for the fiscal 1 year ending'June 30.l average rate on outstanding marketable obligations of th<. or local taxii g authority.ir whit 'i sccmi'ics in ty be.

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

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

or obligations which arc insured by the Federal -Housing Administrator pursuant to section 207 of the National Housing Act if the debentures to. as amende/!) which hare a maturity of not more than eighteen months shall not be subject under this section to. 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<. TIic limitations and restrictions herein contained a» to dealing in. prior to the maturity of such obligations. or obligations issued under authority of the Federal Farm. or general obligations of any State or any political subdivision thereof.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. any limitation.:moneys in an amount. or corpo'ration shall at. Such limitation of 10 per centum shall be subject to the following exceptions. and the Administrator or Administration agrees to.HOUSING ACT OF 1940 77 permitted by la\v.a copartnership or association the obligations of the scvVal members thereof and shall include in the case of obligations of a ci. unoofihc VicYl«il Statutes (we. nothing herein contained shall authorize the. M of lfllaI2nf the Vnllrd SIMM CoOr. whid.lMf> trillion). Administration agrees to lend to the public housing agency. 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.Administration in which the public. underwriting and purchasing for its own account. controls a majority interest. or such obligations of a public housing agency (as defined in the Unitea States Housing Act of 1937. moneys irrcrocably committed to the payment of: interest on such obligations) icill suffice to pay the principal of'such obligations with interest. moneys in an amount which (together with any other.h is authorized by subsection (b) of section 23 of the United Slates Housing Act of 1937.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. Housing and Ihmc Finance Administrator in which the local public agency agreei to borrow from said Administrator. or guarantor who obtains a loan from or discounts paper -.-S. or such obligations.as are secured either (1) by an agreement between the public housing agency and the Public Housing . investment securities shall hot apply to obligations of the United States. § 5200. wneys under the terms of said agreement are reijiiircd to be. housing agency. The total obligates to any national banking association1 of any person.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. * * . maturity of such obligations (which obligations shall hate a maturity oj not more than. prior to the maturity of such obligations (which obligations shall hare a maturity of not more than eighteen months). moneys in an amnifhi which (together with any other moneys irrevocably committed ' ThbfliKvcllon v nit) I*-ftddn!to we. prior to the. and the Public Housing. or issued by the Federal Home Loan Banks or the Home "Owners' Loan Coloration. association. 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.lcnd to the agency. as amended. 479 .-> unimpaired surplus fund. -Loan Act. as amended.ith or sells paper under his guaranty to such association and shall include in thi case uf obligations of. copartnership. and taid Administrator agrees to lend to said local public agenty. and Home Finance Administrator or the Public Housing Administration in which the agency agrees to borrow from the Administrator or Adminintralion.be issued in payment of such insured obligations at • guaranteed as to principal and interest by the United States. 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.usedfor the purpose of pa-'tng the principal of and the interest on such obligations at their maturity. * * * * * * * (//)* 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. or obligations of national. eighteen-months). drawer. if such obligations arc secured by^an agreement between Ihe obligor agency and the Housing. 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 * '* *. as amended). agrees to borrow from the Public Housing Administration. to maturity thereon. mortgage association. * * -* * * R.

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

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

That loans inaae by the Public Housing Administra-* tion for the purpose of so converting . as amended: -Provided.. to be loans to assist the development of the project. . 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 1937.80 :i HOUSING ACT OF 1049 contribution:) under the provision.ended.the project-to a: project VvithrPcdcral uisistance shall be deemed. 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. as ah.

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

as appears in the Congressional Record of July 24 of tliat year.as. 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\. That was a matter for the great United States Housing Authority. forthrightly and truly stated the facts. had in Washington the willingness to earn a»x honest living "and the integrity that prevails in those sections in Marion Ohio.it place.cial diseases in those areas''.'R. because it so happened *hat I was president of the Marion City Board of Health at that time. acting through the State Housing Authority. There '? no such thing as crowding in any sense. The areas arc very sparsely occupied. their answer w. n. page 13827. The upshot of it all was> no sale. find out that there were so. The United States Housing Act of 1937.t is a falsehood of the first water." Of course. There was no. Marion was saved from oil'. There seem» tu be an imprc^iun that the Mum residents are going to take over the building. of the worst political blights that ever struck any nation.ir that they [tliu housing projects)'will nut bu runted to Mum rcniiluiila ur welfare clfciit*. I would to God that we. The citizens of Mark n refused to sell their souls for a mess of political pottage. I was hailed before the Ohio State Housing Board.slum in Marion then and there is.vine in slum areas and the poorest people generally. Washington is the only source from which such evil work as this can -come. 4009 is ina'mly an extension. TLf we had. and there are many dishonest and deceptive laws on them. the only such 484 . "We just followed instructions from \\ashinglon.clo. that were designated by the Federal housing bureaucracy as slum areas. the threat of communism that now so ominously stalks before us wculd not exist. it must he inndc.-.. Maybe there were social diseases iu_ those areas. Texas.9 - g Qn the most populated street in one of the sections which were designated shun. that point they replied that their information was given them by the local board of health. at one time president of the Detroit Housing Coinmi^ioii.one there now. areas. A\ hen questioned on. " i I aitowcd in testimony given before the House Committee on Banking and Currency in 1939. "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.s. The promoters of the scheme deliberately ive out the impression that these houses arc built for the people . from data obtained from eight housing projects in New York. of which H. of which the3" were not even aware when they made this slanderous'Attack. That \yas a falsehood. is the most deceptive and dishonest piece of legislation on our statute books. Ho said: In the fir. and Florida. But according to my experience syphilis and gonorrhea* were no more prevclaut in those parts than in the other sections of Marion. to decide. and i know that no one oil the board gave out any such information or was in a position to do so. Th.82 " HOUSING ACT OP 194. How did UH> local stooges of the United States Housing Authority . 55 percent of the families owned their homes free of debt. not to cxplam my opposition to the scheme but to be told that as mayor of Marioa I had no authority in the matter. Thomas Danahey. Mr. Such is not the case. I \i as given to understand that the determination of the placing of these poiitica' liousing projects was no concern of any little mayor.

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

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

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