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  • II. MAJOR SunjECTS COVERED BY H. R. 4009
  • V. SLUM CLEARANCE AND COMMUNITY DEVELOPMENT AND REDEVELOPMENT'
  • VI. LOW-RENT PUBLIC HOUSING
  • Vn. HOUSING RESEARCH
  • IX. MISCELLANEOUS PROVISIONS
  • L MAXIMUM RATES OF FINANCIAL COMMITMENTS UNDER H. R. 4009
  • XII. CHANGES IN EXISTING LAW

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

ta

402

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

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

lines 19. line 12. . such Federal agencies are hereby authori/cd to accent funds and re.imbufse their appropriation for the cost of such studies or surveys." .is hereby amended by renumbering sections 20. 28. immediately following line 8 insert the following new section: • Sue.1 conditions as may be prescribed by the Administrator pursuant to title I of the Housing Act of 1949. or desirable for such purposes. "(c) The District Commissioners arn authorized to include in their annual estimates of appropriations items for administrative expenses which. li»:^ 2. in the form of advances of funds. "(b) Subject to the approval of the District Commissioners. convenient. The Administrator shall appoint a Director to administer the pryvisions of thi:: title under the direction and supervision of the Administrator. Page 72.subject to the approva_l of the District Commissioners and subject to such terms. 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. Notwithstanding any other provisions of la_w.OF 1940- 24. Page 55.4 HOUSING JtCT . 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. 20. Page 77. loans.. 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 to authorize the appropriate agencies operating therein to accept.'.ipoweTed to accept financial assistance from the Housing and Home Finance Administrator (hereafter iii this section referred to as the Administrator). the Agency is hereby. 20 and 23 and pa^a 75. line 8. immediately following line 8 insert the following new sections. or capital grants may be made to a local public agency under title I of the Housing Act of 1949. 27. and the Agency. to assist the Agency ii. 25. the benefits provided by titles 1 and II of this Act.authorized and ci. acquiring real property lor redevelopment of project areas and carrying out any functions authorized undor this Act for which advances of funds. 509. (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). 21. Page 54. Page 73. respectively. and by adding after section 19 a new section to read as follows: "SKc. in addition to 406 . the Agency is authorized to accept from the Administrator advances of funds for surveys and plans in preparation of a project or project. and 23. 304. strike out "51* nncl i:\sertah lieu thereof "501". DISTRICT OF COLUMBIA PARTICIPATION SKC. Jines 3 and 4.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. To make available to the District of Columbia. as amended. Page 53. strike out "321b" and insert in lieu thereof "321h". pursuant to I'tlo I of tho Housing Act of 1949. covenants. and 22 thereof as sections 21. 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. strike put "moneys" where such appears in each place therein and in each instance insert in lieu thereof "monies". and capital grants. the District of Columbia Redevelopment Act of 1945.tithorizcd by this Act which may be assisted under title I of the Housing Act of 1949. 3 and 6. strike out "the State or" wl ere such appears therein. loans. Page 78. 30. 22. 26. 29. section 508 and section 509: NATIONAL CAPITAL HOUSING AUTHORITY SEC. may enter into such contracts and agreements as may be necessary. 508.

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

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

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

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

committee leads to the conclusion that the Nation must be prepared to build or rehabilitate at least 1. there will be approximately 39K million nonfarin families which will require separate housing. and many families have been obliged to.000 units (table 1).829.300. Nor would anything have been done to cope with those currently adequate imfl* which. It results from the fact that over the years vre have never been able to produce enough housing. we will require 6. Consequently. the quality of our housing supply would hr worse in I960 than it is today. in April of 1947.live iu wholly inadequate and unsuitable accommodations.000 farm units a year each year from now to I960.000 dwelling units. If no more than this is accomplished. 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. When allowance is made for the fact that about 2. your committee had available to it the comprehensive studies and investigation of-the Joint Committee on Housing. after deducting seasonal accommodations ami houses held off the market for one or another reason. normal family life cannot be achieved.obliged to spend their formative years either in dreary. It has been building up over several decades. Unfortunately. Just to keep up with the increase in the rate of family formation.000 and 300. Currently available data docs not permit a full statistical measurement of all deficiencies ii: the housing inventory. if substantial progress is to be made in bettering our housing conditions.000 additional nonfarin units to our inventory between now and 1960. The latest Census Bureau reports show that.100. at prices which a large proportion of the American people can afford. will deteriorate during the years ahead.100. effective nonfnrni-housing inventory for year-round use was about 32. 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. This data and other material-made available to your . In attempting to get some mensvie of the magnitude of our present and prospective housing requirements. therefore.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.000 new and converted units were added to the supply since April 1947. 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. housing has never been replaced as rapidly as it should.000 nonfarin dwellings in 19(50. Looking ahead to 1960.000 uonfarm dwelling units and between 200. the effective nonfarmhousiug inventory «t the beginning of 1949 is estimated at 34. iinhcalthful slums. No progress would have been made" in eliminating the substantial number of imiu which fail to come up to any do :cnt American standard. this means there will be need for an effective housing supply of approximately 41.300. the effects of poor housing leave their heaviest imprint upon the millions of children who are being . together 411 .729. the basic problem itself is not a new one. or in overT crowded dwellings in which. the Bureau of the Census estimate that. However.

iut: Uninhabitable dwellings — 137 Seasonal collages. April 1917. All told. TAIII. 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. In this connection. It also fails to include the effects of continued use upon old houses which today arc in satisfactory condition. rcrlra P-70 N'o. I II(>u. bathtubs. 100 Estimated effective nonfnrin supply. This figure fails to take into account.16 HOUSING ACT OF 1949 \\ ith those units in urban nrcns which. Some of the most dilapidated housing is to be found in rural communities.000.—Effective nonjarm housing inventory as a/beginning of 10 j9 (in thousands) Tot. etc 001 Vacant units held off the market (hoarded up mansions. 820 i U. 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. and of temporary war and veterans' housing units not a part of the permanent housing supply. In April 1947 the Census Bureau survey showed tlmt 1.000 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. 301 1. S. or rehabilitation of some seventeen to eighteen million dwelling units (table 2). were in these t\vo categoric1'. conversion. although not needing major repairs. On the basis of the census statistics and testimony presented in the course of the hearings.600.000 units (or an average of slightly more than 1. units sold or renled but not vet occupied) '. however. were in need of major repairs.K 1. beginning of 101!) 34.720 Add: Estimated additions to supply in 10>>7and 10'lS through new construction and conversion 2.510 Effective supply of housing (o meet nonfarm needs of as April 10-J7 ' 32. involves the construction. Cnrronl Population Deport*. Itiin-.lnc Clinnwtfrlstlcs or tlio United Smirc. or inside toilets.300. and in addition. both occupied and vacant. including both nonfarm and farm housing. Your committee appreciates the fact that the problem is not limited to nonfarm areas. according to Bureau of Census . April 1017.2-18 SuMi. the total job. table 1. limiting lodges.400. lacked inside private bath and flush toilet. and that a distressingly large proportion of farm housing fails to measure up to minimum standards for health and decency. <• 413 .li] o( llic OMJIIS.000. over half the units not in need of major repairs failed to have running water. The replacement of these units. or roughly one-fifth of all farm dwellings. Some of the worst overcrowding occurs in farm housing. In April 1947 approximately 5. brings up to some 14.il number of nonfnrin duelling units.725.000 units. ' 34. it appears that between 2 and 3 million farm homes will need to be built or rehabilitated between now and 1960. your committee calls attention to the fact that the Joint Committee on Housing concluded that ah allowance of 2.

Some of the programs of strictly emergency or experimental character have been discontinued and have been 01 are being liquidated.741 2.HOUSING ACT OF 1949 . It would provide a frame of reference for the use of the Congress. the necessity of shelter to meet the production requirements of World War II. communities. the administrative agencies. There has never been. 000-3.. Add: Allowance for 4 percent effective vacancy rate for rent or sale Total. long-range program. 000 1C. A great part of this legislation was orginally enacted to deal with acute problems which became apparent during national emergencies. 741-17. including the economic crisis of the early thirties. 11 TABLED. that it requires a comprehensive. and industry and labor in appraising housing activities and progress. and that the stability of I he home-building industry is essential to the health of the economy. COO 41. and tho Federal Government in the attainment of those objectives.effective supply of dwelling units needed in I960 Subtract: Estimated effective supplv. 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). programs which hnve been continually revised and impro\ed by the Congress to scr\ e changing needs. and the postwar veterans' housing emergency. Underlying tho development of these programs. These include a system of aids to home financing institutions which is administered by the Home Loan Bank Board.100 34. 271 8. It is now well recognized that housing is not a temporary problem \\hich can be solved by emergcncj* measures. Total nonfarm ne\v construction conversion and rehabili. every successive Congress lias given attention to housing. the credit insurance programs of the Federal Housing Administration.—Housing needs of the United Stales in 1060 (in thousands) Number of nonfnrm fainiliss which will require housing in I960. ' 39.829 G. 413 . the local communities. But from a considerable part of (his legislation have emerged permanent. a statement by the Congress of the national housing objectives or of basic policies as to the respective spheres of activity for industry. 500 1. labor. 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. as \\ell as the establishment of several emergency programs. 470 14. has been the implied recognition that the well-being and security of tho home are matters of national public policy. and numerous measures dealing separately with various aspects of the housing problem have been enacted. Your committee believes that such a declaration of national housing goal and policies is needed. and the low-rent public-housing program administered by the Public Housing Administration. DECLARATION OF NATIONAL HOUSING POLICY • Since the establishment of the Home Loan "Bank System \>y the Seventy-second Congress in 1932.. 741 IV. however.

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

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

000 would become available over a 5-year period. ' and any of the. These arc the costs which.. to bo increased (subject to the total lonn' authorization of $1. and further amounts of §250.crest. 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.upon a determination by the President. 4009 would authorize the Housing and Home Finance Administrator to assist L"-alities in carrying out slum-clearance projects. 1949.000.000. authorized iiiuruasi's therein becoming uailablo in any year to bo incruasud (subject to the total oapital-gra..000 beginning July 1.000..000).000..000 becoming available on July 1. and preparing the sites for appropriate reuse.000. will. The appropriate local public body in each city would select the project areas. acquire the project sites. 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. at.000. clearing.000. 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.000 on July 1. with very few ahd'Jipited exceptions. outlays required.01)11. R.national economy.14 .000 and would become available in f i \ o annual installments of $100. The capital-grant authorization totals $500. 1949.to finance the capital cost of acquiring. 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. together with the large capital.000 on July 1 of each of the three succeeding years.000. . 1950. and prepare them for disposition f^r redevelopment. by not to exceed additional amounts aggregating not more than 8100.000 upon a detennina- . " 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).000. any time or times. and assuring compliance with statutory requirements. at any time or times. Federal loans would be utilized. $225. The bill permits the initial -capital-grant authorization. The loan authorization aggregating $1. FEDERAL ASSISTANCE ATJIIORIZED IN H.000. 4009 S. It is in the national interest that iip further delays in starting an effective attack on the slum problem should be countenanced. prepare the redevelopment plans. HOUSING ACT OF 1949' These arc the costs which prevent slum clearance from being a profitable venture for private enterprise. furnishing technical assistance. $25. and any of the authorized increases therein becoming available in any yoir. from moving ahead with this task within their own limited rcscfurccs.t authorization of $500. that such action is in (he •public ir(. have prevented the loca) communities. The role of the Federal Government would be restricted to the making of loans and capital grants.000. K. The bill penults the initial loan authorization.000 . by not to exceed additional amounts aggregating' not more than $250.

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

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

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

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

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. and will undoubtedly rc-iain for years to coino. Despiti-high postwar 1 -vels of employment and income. -1009 The bill authorizes the construction of not to exceed 1. 7 ni^iual installments of 150. If the families now living in the slums are to be provided with decent homes. After weighing all the-evidence presented to it. 1& family. it is. take action to prevent it. In order that the progress of the new program may be adjusted. Adequate shelter is not available to these families becausp rents or prices charged for such shelter would represent an . while 30. if necessary. Your committee is equally convinced that the public interest amply justifies the provision of such subsidies. The bill authorizes the commencement of constriction on the first installment of 150.today.000 units is authorized in 7 stages. Your committee is convinced that this can be done only with the assistance of substantial public subsidies.N'pKR II.. if possible.OOQ new low-rent dwellings in urban and rural nonfarm areas.of our. The problem. is not the sort which can be solved in the foreseeable futuii by pri\.000 units after July 1.i|p cnicrprise even with further possible financial aids. On the -generally accepted-rule that the cost of housing should. Each year thereafter this authorization is increased by 150. 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 . a considerable iM.050. This autho^ization will become available in.-rccntagc. not exceed one-fifth of income..7 percent of utban-families had money incomes. both Federal and local. the average rent which the urban families hi this lowest 30 percent income group can afford to pay would be approximately $27 pelmonth. the rcpprts of the Bureau of the Census show that 19. including heat and nil other utilities. 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. therefore.1500. 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.G ACT OF 1949. to changing economic 'conditions. R.families whose incomes arc so low that they must continue to live in slums or other inadequate housing unless we.in 1047 of less than $2. . 1949.050. and with proper budgeting their incomes are usually sufficient to'supply all the basic needs of their families except adequate shelter. PROGRAM AUTIIOUI55KD U.3 percent had incomes of less than-$2.unduly aiid prohibitively high proportion of their limited income. 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. of these families are usually gainfully employed.rge for decent existing housing. both in its extent and imturc. 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 .000 units until the full program of 1.HOUSIN. The breadwiiihers of most.000.000 units.

000 dwellings. preference for admission to low-rcn\ housing.050. it could be increased by 50.000.000. Lowinconic families who are.000. In this way.annual contributions can also be accelerated by the President.00q units. be increased by 100. The total amount which the PIIA may borrow from the Treasury and have outstanding at any time is increased to Sl.000.000 on July 1.000. Housing Administration is authorized under the pending bill to enter iiito annual contributions contracts for 885. instead of the present authorization of $800.000 units at tiny time. remain effective for subsequent use. authorized in respect to the beginning of any fiscal year was not fully used in that year. 1949. Since a positive program of slum clearance is 422 . under the provisions of the bill. for example.000 per year.050.000 units and a bottom-limit of 50. JI. no further increase could ever be made with respect thereto.000 after July 1. 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.000 units at a subsequent time. Thus. In the event that the full number of starts.000 units. be carried over for subsequent . Any of the authorizations could.000. the President can adjust -any of the authorizations between a top limit of 250. Subject to the total of 8400. if unused in suchycar. Although contracts may be written up to this maximum amount. it is expected that. m. The first of these proposed amendments is designed to relate the public housing program to the new slum clearance program. It also places the borrowing power on a revolving-fund basis. but. This liinit will be increased by three annual increments of 880. after any authorization was increased by a total of 100. of course.20 HOUSING ACT OF 1949 any time or times by amounts aggregating IT"' more than 100. It is therefore anticipated that the funds actually borrowed from the Treasury will be very substantially less than the authorized amount. subject. 1953.000 units at one time and increased by a further 50. of course. such authorization woiikl. K. to the total limitation of l. 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. and authorizations which become available at the beginning of one fiscal 3'earniay. The Public.000.000 and a final 875. 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. provided that the total authorization can never exceed 1.000 units. the contributions actually paid will not exceed more than -two-thirds or three-quarters of this amount.000 per year. The total maximum contributions thus authorized would amount to 8400.000. on the average.000. accordingly. the authorization for. 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. 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.500jObO.

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

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

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

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

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

and to attract and maintain on the land a product ive type of person.\ oniuiit-of farm housing standards is essential to a sound and . 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. 10 percent of our farm homing was in-need of major repairs. builders if they arc made available to them. The research program offers. FAHM HOUSING Your committee regards the farm housing title of the bill-as essential ui dealing with the phases of the .m.. was proportionately twice-:«s prevalent in'farm housing as in nonfarm housing. and the Federal Government. farm housing has been largely ignored both in our housing and our agricultural programs. Your commit tee is a\\ are tlm. it is generally agreed. also. local:governments.s could result in substantial sayings to Amcrir can home buyers if .higher. secure rural economy. In 1047. and that a considerable amount of home improvement has resulted. Only 3 out of 5 had electric lights.500. si-i—•* '".nciit.. 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. The farm home must be considered as ii. which is usually associated with cities. However. considerable number of these builders throughout the "country. Only 1 out of o farm dwelling units liiiil both private bulb and flush toilet compared to 73 percent of nnnfarm housing.' . the best promise of attaining real and lasting cost reductions through technological progress in an industry which. .HOUSING ACT OP 1949 29 . that the quality of farm housing as a whole is considerably below the standards of nonfarm housing. One reason that form housing problems.national housing problem covered in this bill.cet it. impro\e (lie sol.isno. Heretofore. despite this relatively . ns nil of the facts before your committee indicate.as such. will bring real and lasting benefits to nil those interested in housing the consumer. The committee is informed that even in 1947 more than 2.applied by c. labor. have received less attention thus far than those of urban areas is the peculiar-mid specialized nature of farm housing. Overcrow ding. Vili.t tin. or as . wovidc power. Two-thirds of our farm dwellings lacked running water. as compared to 8 percent in the case of npnfhrm bousing. under Government leadership. Tmpro. has lagged behind other American industries in this respect.000 farm families produced farm products yajuiul at. as well as industry. Your committee is firmly convinced that the n-scarch program contemplated under title IIT of the bill is highly desirable to facilitate housing progress.improved financial position for fanning as a whole. a large proportion of our farm families is still unnblc to obtain adequate housing. During its hearings the committee received concrete evidence of how Government research in only two design problem.less than §1. It is a program which.level of agricultural inuoiuc in the past several years lin* raised the standard of living on the farm.. It has been treated as a byproduct of efTon* to increase production.i mere supplement to lowii-and-cii-y-housing programs. The result has-been.000.

this title of tbo bill provides for loans increasing in amount annually through. it will provide positive experience through which this approach can be.-»ary funds to carry out the above three types of assistance. The farm housing program provided for in the bill. .progressively developed . Measures designed to serve nohfarm housing needs arc therefore not adaptable to meet the different basic conditions with respect to farm housing needs. a pure water supply. till' IV ha& been designed to meet the three major types of farm. but to make it possible for families to make such -repairs and necessary improvements to their substandard housing iu> will furnish them. For owners of self sustaining farms who arc unable to. and a limited amount in outright grants.assistance provided under the bill arc: 1. by improved farm practices or by farm enlargement or development.000. will make possible a significant start in the imr provcmcnt of farm housing. 3\ The l!)ird4ypo of assistance proposed relates to farms that offer no 'practical prospect of being made self-sustaining. arc made a\ nihihlc for families residing on such farms. A loan or combination loan and grant is 432 .:.000. . The purpose of this assistance is not to pro vide new or even adequate housing of a/permanent nature. 2. The three types of .in.000. To provide the m-i. and its administration has been placed under the Department of Agriculture. loans of a similar type are provided.the foi^lh year to an aggregate of S'JoO.'particular to the farm rehabilitation programs of the Farmers Home Administration. with annual contribution* available as a supplement \vhere needed for a period of not more than iO years. and one-half of the payment due on . Small loans.principal in any one year.000. For owners of farms not self-sustaining at the time but which offer reasonable prospects that they can be made self-sustaining.000 in.yeuily authorixatioirat the maximum of 85.30 BOUSING ACT OF 1949 part of the income-producing property find plant-from which the farm family deiives its livelihood. light rook niul similar minimum repairs or improvements.»A1 improved. while small in relation to the need. At the same tinu. Such loans may be secured by the far'^rs' equity in the farms.000. The bill also provides authoiity for $]'2. Such loans. These contributions would bo limited to a maximum of the annual interest. where it can be appropriately related U» olhrv farm services and •programs.and grants are limited in amount and arc to bo used for such purposes as proper sanitation. The maximum grant for any one dwelling or building would be $500.giants for tho third -part of the program. loans arc provided with terms up to 33 years ajid at not more than ^percent interest. 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.and the rural community at least essential health protection and decent minimum shelter. housing situations. with such contributions to be paid to any beneficiary over a period not to exceed JU years. screens. obtain from other sources the financing needed to provide adequate housing for themselves or their workers^ or for other farm-building improvements. The amount of annual contributions provided would increase annually over 3 years to reach a. In recognition of the particular oonsi-'orations which surround the farm housing problem.

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

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

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

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. and labor. and (ho Federal .Security* Administrator. are approvablc forothcr ci tics and Stales. industry. 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. under title I . «••> members of ( l i e National Housing Council in the Housing and Home Finance Agency. 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. but the. It would provide that in the event such local grants-in-aid arc Jiot sufficient to meet the local grants-in-aid requirements. for States. . in recognition of the interest of these agencies in problems related to the Federal Go\ eminent'a housing program . 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.34 HOUSING ACT OF 1949 . under appropriate conditions. The present District of Columbia Redevelopment Act would remain in full force andi effect. the inclusion of the Secretary of Labor. . Appropriations to the District Commissioners would be authorized for such purpose where necessary. or his dcsigncc.amend-. 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.of this billj on the same basis as provided in this bill for other cities throughout the country. or his dcsigncc. . 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._ Oilier pro\ isions uf this title of the bill pro\ idc for the appointment by the Housing and Home Finance Administrator of advisory committees which would serve to further cooperation between the Cnnernmcnl and prhatc persons aiiu grot:pa interested in housing fiom the \icwpoints of the coiiMiiuer. . .assist the Administrator and to act in his absence. to the same extent as local grants-in-aid. Territories.housing assisted under the United States Housing Act of lfl:)7. under title t of this bill. OTHEIl PUOVISIOXS .jl he coiuersion of certain State-aided low-rent or \etcraiis' housing projects. finance. 436 . and municipalities under titles I and EC of the bill.

HOUSING ACT OF 1949 35 L MAXIMUM RATES OF FINANCIAL COMMITMENTS UNDER H. 100 •500 12. R.5 1952 1051.rcntpublic'hoiislng1 Total. and purchasing powor. 2.. not to exceed additional amounts aggregating not more than $100. 250 100 350 100 5 105 SO . * Any subsequent year. 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. period.. within total authorization. 4009. tho anniul contributions actually paid have amounted to 5S. SHOUT TITLE This section provides a short and convenient form of citation. within total authorization.to exceed additional amounts aggregating not more than $$0. at any time or times by the President by not. repayable loans Contracts for grants: .. production.000. 1 Thb.950 250 75 325 100 4' 100. < Thb annual contributions authorized for low-rent public housing may be j.^i. 5 1951 _225 50 275 100 2. R.000 and the total-authorization placed on a revolving-fund bask.un. 1 Subject to annual determination by tho Congress within these limits. Low. I iscalyea IT lew 25 TOO 25 750 100 1 101 85 S3. * May be Increased.000.Farm housing .5 i May bo increased.000.5 512. 1 The contributions authorized for farm housing may be paid over a 10-year period.Jiousing industry to make ih> full •contribution loward an economy of maximum employment. to reali/.000.000. AS AMENDED SECTION 1. XI.000. to eliminate slum and blighted areas. * Ma> bo increased. the section establishes as specific objectives a volume of housing production and related community development sufficient to remedy the serious. Thus. and purchnsing.o as soon as feasil>lc tho goal of a decent home and a suitable living environment for every American family..njo is i he maximum amount which inay be pniil in any 1.5 75 • MOO »»5 75 405 81. at any time or times by the President by-additional amounts aggregating not more than $250. amount added to existing authorization of $500. and to enable thu.Y SECTION ANALYSIS OF H. .powcr.5 Contracts for inmul contributions: Total annual contributions 10Z5 SO ' 1 SI •104 SO 1. SECTION' 2. to redevelop communities so as to advance tho growth and wealth of the Nation. The SlOO.nl over a 40-year. Since the inception of tho original pr. at any time or times bj the Frcsidcn! by. production. In so doing it-atrcsaus the Xation's interest in housing production mid related cuiiimunit. . Tho kcysionp of tho national housing jjolicy established by tho Congress m this section to facilitate the attainment of these objectives 437 . 4009 [In millions of dollars] _ Commitments Tor repayable loans: Slum clearance * ..OOO.000. a iilun total authorization.Obb 700 250 250 1. year.5 percent of the maximum amounts which could be paid. S2 IBM 250 l.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.housing sliortajjc. SECTION H.

materials. 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. and the increase of efficiency in residential construction and maintenance. the-development arid redevelopment. and that governmental assistance for -decent. both temporary and long-term (but not in excess of 40 years in the case of long-term definitive loans). and methods in residential construction. and size for adequate family life. 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. and size for adequate family life.. construction^ livability. and that governmental assistam-c shall be utilized where feasible to enable private enterprise to sefye still more of the total heed.to finance necessary project costs. pf communities. and without Mich aid. housing industry at a high annual volume of residential construction. Two types of assistance arc authorized: 1. powers. where needed.a part of the total need as it can. 438 . As a complementary policy. livability.l for residential construction available for development or. To asstne that all housing activities of the Federal Government will be administered in accord with. at lower cost . Loans. . safe. (4) the development of well-planned. (3) the use of new designs. with the active participation of private enterprise. construction. at an interest rate designed to return to the Government the cost to it of the funds it loans.of housing of sound standards of design. techniques. 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. and (5) the stabilization of the.slandards of design.redevelopment. integrated residential neighborhoods.and " . the use of standardized dimensions and methods of assembly of home-building materials and equipment. the objectives and pollens thus . encourage and assist (1) the production of housing of sound.established by the Congress.36 HOUSING ACT OF 1949 is that private enterprise shall be encouraged to serve as Inrge.so as to make such areas and other areas necdi. and duties with respect to housing to so exercise them as to. integrated rcsi? dcntial neighborhoods and the development and redevelopment of communities. (2) the reduction of the costs of housing without sacrifice of such sound standards. and the production. there is included a specific congressional directive to the administrate e agencies which have functions. and that appropriate local public bodies shall be encouraged and assisted to undertake positive programs of assisting the development of well-planned.

sanitation. That_evcry project assisted be a local undertaking.. 500. The administration of the program would be under tlie jurisdiction of the Housing and Home Finance Administrator. 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. 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 improvement of building ami related codes. and safety for dwelling accommodations. or regional (within a State). suoh areas by private enterprise. -~ 4. locally planned. improvement. together with section 103. for the redevelopment of. to encourage the operations of such local public agencies as arc established on a State. locally approved. 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. and modernization of local codes and regulations relating to land u^c ami adequate standards of health. consistent with the sound needs of the locality as a whole. in extending financial assistance under this title. locally managed. __ 2. SECTION 102. the rehousing of the families displaced by the clearance of the. LOANS 1 J / . It also requires the Administrator.. Kept. or unified metropolitan basis.financial participation in ah amount equal to -a. HESrONSIBILITIES This section provides that in extending financial assistance under this title.. A . That there shall be local . and designed to serve •Ideal-needs. 5. That any project assisted be related to the improvement of housing conditions in the locality. of slums and bli0!itcd areas through the adoption. 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.. 3.planning. 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. .- HOUSING ACT OF *949 37 . H.area. That the redevelopment plans for the redevelopment areas in the locality afford maximum opportunity. in such community.. or unified metropolitan basis.t. This section. In-the administration of the pjqgram adherence to the following principles is required: 1. SECTION 101. the date the contract for thu loan is made'. sets forth the forms and extent of Federal financial assistance. That there be adequate provision for. . or regional (within a State).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.81-1 0 . and (2) preventing tlie spread or recurrence. .2.

the school and lease it to the school district pending the ability of the district . in the form of_capital grants.itc: S25.38.000.000 on and Jtcr July 1 i.available in any your to-be increased (subject to the total loan autliorhalion of $1. respectively.. 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 . 'j'his is necessary.upon the condition that such advances of funds shall be-repaid.000. with interest at not loss than the applicable going Fed. the school district for such an outlying.tax base sufficient to permit the '-ouancu of bonds for building. or alternatively a loan could Tic made to flio Veal -public agency -undertaking the project so that this agency could'coi.000..000. SKCTION 103. To provide. with the approval of the President.land which is open or predominantly open.initiation by the President. CAPITAL OUANTS This section provides for Federal subsidy.000.thc Administrator is authorized.to take the building over through -the issuance of its own bonds. each of the years 1951. to issue and have outstanding at any one time notes or other obligations for purchnse by the Secretary of the T. by not to exceed additional amounts aggregating not more than $2fiO. 1950.000 on and after July i.-casury aggregating riot more than $1.000. increased by $225. that such action is in the public interest. 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. ml rate. a new school -until the project area is actually developed. out of any moneys winch become available to such agent} for the undertaking of the project or projects involved.. The section also permits (he initial loan authorization. Tbc section also provides that the Administrator may make advances of funds to. a temporary loan could be made to the school district itself. 1952. and to substitute such funds for "borrowing from the Government. 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 .000.. HOUSING ACT OF 1949.project a»ea. Such temporary loans-must be repaid in not to exceed 10 years. In siicli a case.on. 1949.000 on and after July 1. and that the contracts for such ad\ances of funds may hi.s. This loan authorization becomes available over a 5-ycar period at the-following v. 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. and" by $250.local public agencies for survej's and plans in preparation of projects which may be assisted under this title.000).tr'ucl . area might not have a. where difficulties may arise due to the lack of t i-rtain public facilities.000 upon a dot<>. and any of the authorized inn-cases therein becoming.000. In connection with any project. especially schools. particularly in tlie case of outlying projects which can facilitate the clearance of central shim areas.the funds necessary to make the loans. at any time or times. and 1953.000. the suction also contains provisions to facilitate financing _ by private capital. \Miile providing for federal assistance in the form of loans where necessary.made. For example.

000 (ui and after July 1 in-each of the vcnrs 1949. if a project cost §1.that tholouil community mustitself participatefinancially 441 .i deterniiniilion by the" President.under tliis title cannot exceed two-thirds of the net loss on such projects. 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. and any of the au'hori/. SKCTION 101.000. 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. The capital grants wo. the extent necessary.000) rather than $200.000.correspondingly. 'the Federal grant \\oiild"-then bjj limited to $150.HOUSING ACT OF 1949 39 with an approved plan for the project area and at prices consistent with such use.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.XTS FOU LOCAL fiUAXTS-IN-AIR This section requires the locality to share the net losses of any project iissialuil b.000 and the local grants-in-aid of $150. that such action is in the public interest.000 (including 8150.000. aim net losses used as. hi any time or times.does not appear that JicdcraLsubsidy assistance for such cases wouIcLat tins-time be justified.oJO (being two-thirds of the loss of $300.\ Federal capital gnints under this title and to call upon the Federal Gournmcnt fur nid only to..000). In the event that local grunto-in-aid -were sufficient to cover the entire loss. Although Federal loan assistance for the acquisition and preparation of open land for residential use is provided for. The Federal capital grants with respect to all projects of a local public agency oh which contracts for capital grants-have been-made .uld be limited in amount to two-thirds of the net cost of the projects assjstcd_in the locality. Thus. resulting in a loss (or net project cost) of $300. no Federal grant would be made for the project. the basis for the sharing-of Federal and local grants for all oilier projects in the locality. 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. 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. HKQUinKMr. it. respectively. 1952. With respect to any individual project. It pro\ idea .000). Such projects would be excluded from the computation uf aggregate project costs. T!ie section also permits the initial capital grant authorization. Accordingly^ no Federal capital grants niay be made" in commotion with such n project and.OOO.. by not to exceed additional amounts aggregating not more than $100000. 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.ed increases therein becoming available in any year to be increased (subject to (lie total capital grant authori/atio'n of $500.ar period at the following rate: $100.000.000. 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.000 (being flic difference between the loss of $300. no local grantsin-nid are required. c.1951. local gnnts-5n-aid.000 upon . 1950. und 1953.

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

in effect requiring that decent.thc community. 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'. and cxptnditures for materials. and sanitary housing be available for the displaced families in areas which have generally satisfactory public and commercial facilities. PROTECTION OP JjAHOR STANDARDS This auction designed for the ]>rotcv.. SECTION 100. c i t \ . it provides for the anointment of a director to administer the provisions of this title .this title.tiun of labor standards. In so doing.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. 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. development of any project assisted under. the total..t area us part of aguiicral city paving contract \\hich also covui-s street \\oik in areas other than the project area. SECTION 106. by pr-'viding that any IaiurVvJlit.-and the proceeds -from any such sales would be deposited in-the Trejisiiry as miscellaneous receipts.provisions of this section arc general in nature.pay rolls. to the Secretary of Labor a^ to the nunibrr of persons employed by them. SURPLUS . requires tliat not less than-prevailing \\agcs be paid to those employed in the.aider the direction and supervision of the Housing and Home JFiriancc Administrator. the aggregate amouut of their . ' . makes the "kickbuck" statute applicable tojill such projc'Ug.jn^icct. it shall be sold at a price equal tbats fairimarkei value. Demolition or rcim>\ al work or oif '-improvernent work. 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. man-hours vurkcd.c form of project work.. the city (as a part of its local graiits-in-aid) may install streets in the projvc. For example.HOUSING ACT OF 1949 .. When »»ch land is sold to the local public agcocj' by the Administrator.paid for by the State.. aud which are reasonably accessible to their places of employment.DEHAL HEAL PROPERTY This section authorizes the transfer to the Administrator of any Fectaral real property surplus to. July lj 1951 j if the governing body of the locality determines that such demolition would reasonably be expected to create undue housing hardshipln. _ In view of the present acute housing shortage. safe. 443 ._ SECTION 107. GENERAL PROVISIONS This section gives the Administrator the technical powers necessary for the performance of liis duties under this title. SECTION' iO_8. Or the city may perform demolition or removal \\ork with salaried personnel in its engineering dei>arlmcnt._tlic Jiccds of the Co\eriiment and within the area of n land assembly project.41 protection for such families. The .

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

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

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

rttstt. This is in lieu of a present requirement ns to comparison with the average costs of private construction in the locality. .-ftcutc need for such housing.50 in sni. . SECTION 204.on constriictiolt cubtsV uiul establishes a uniforfijTcciling. the section simplifies determination of compliance 'with the cost limitations by specifically basing tliese limitations upon the cost of dwelling construction and equipment. and makes it possible. and permit the revision j«" contracts for. iu tho event there is 447 . In addition. This will ordinarily permit firm detcrminatio:..e it would not be fon&ible without such an increase to construct the-project without sacrifice of sound standards of construction. shall approve the amount of all main construction Contracts before they are awarded by the local public housing agencies.ntially all of tho-capital cost of low-.love income.This section also will require that the Public Housing Administration. design. 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. and where there is nn. Eightieth Congress. the section provide^ for a higher cost limitation of 81.respectively. any projects which hayc proceeded (prior to enactment of this bill) under iho provisions of Public Law 301. The authorization increasing cost limits is applicable to any Jowr rent project completed after January 1. rent housing projects by tho sale of bonds to private investors. It :dso authorizes an increase in this cost liniiuaion by not more than S750 per room in areas \ylier. 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. the. 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." HOUSING ACT OF 1949 45 quirement that contracts shall provide hi all cases for meeting the spccificd_pcr rooih limitation.ill and large cities. not dependent upon city sizcjToTthe cost of Dwelling constniclion and equipment. In order that ilio drastic increase in building costs may not prevent the provision. It will also make the increased cost limitations applicable to. on some of which a small amount of construction work was -done before they were deferred.750. Because of special cpst problems in Alaska. of housing needed for famijies of . PUIYATE FINANCING The basic purpose of this section is to amend the financing provir sions of the United States Housing Act of 1937 so ns to make possible thOipermancnt financing of s. 1048.anil li\ ability. taking Into account the level of construction costs in the respective localities.000 and 81. . per room..2. 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. This will make the increased cost limitations available in the case of low-rent projects which vcre deferred during the war. Subsection (a) relates to this pledge. section also has special provisions permitting higher costs in that Territory if found necessary. as coruparpd with existing Jimittitiuiis of $1.

46 HOUSING ACT OF 1949 more than one issue or class of bojuls. fiom the applicable going Federal rate plus one-half of I percent to simply the going Federal rale. 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. Subsection (d) reduces the maximum loan period from CO to 40 years In tho case of projects whiclunre initiated after March 1. respectively. This subsection also makes. to pledge appropriate amounts -of annual contributions separately to oath issue or class of bonds. am1. and that in no event shall such rate >bc deemed to be less than 13/2 percent. 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. the project will continue to operate as a -low-rent housing project. Further. 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. Conveyance of title rather than delivery of . 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. This lending power could. PDA \\ould continue to make annual contributions for the ]>roject.cpvenants to the Public Housing Administration. After taking title of . 1949. 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. 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. every annual contribnuono contract (including amending or superseding contracts) may provide that. 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 . Contracts for projects initiated prior Ui March 1. for Itmii or annual contributions. will have their investment adequately protected.approval of the contract. bo made use of only if the projects and tenants were other? wise eligible under and mcol all of the requirements of the United 448 . the rale used shall be the highest thereof. 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. Pursuant to subsection (b). 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. This would assure both (1) that.pursufiht to statute.. which are assisted by Federal annual contributions. provided they are not nssisled by Federal annual contributions. in the event of jv substantial default by a local public-housing agency in its. of course.possession \\ould be requhed only when PITA detcrinines that this is necessary to achieve the purposes of the act. 1949.part. or redelivery upon-a satisfactory curing of the default).possession. 1949. but not in excess of the amounts contracted for.

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

000. payments in lieu of taxes. may not be capitalized. Carrying charges subsequent to the date of physicn1 completion. Subject to the total authorization of: 1. the amount mndo available at the bcginning-of any fiscal year.48 HOUSING ACT OF 4949 borrowing power will make it possible to provide all of the capital.f any fiscal year may bo increased at any lime or times by additional amounts aggregating not more than 100. total additional annual coiaributions authorization of JHH more I him 8400. SECTION 205. The new authorization thus totals 8400. The President is authorized to accelerate or retard the program. thus making a total of 1.000 new dwelling units in 7 years.the following 3 years.000 now units. jM-acli^ in the past. and each of such authorizations may be drcrensed at any lime or times by amounts a(. the -extension of the-low-rent program. 1953. which limit would be increased by further amounts of 150jOOQ units on July 1 in each of the years 1950 through and including 1955. and by S~o. In respect to projects initiated after March 1.050.000 per luiiunn. ANNUAL CONTRIBUTIONS Subsection 203 (a) increases the 'ublic Housing Administration's annual contributions authorization in order to provide for an extension of th«.000 units. however.000 units. 1949. 1949. program of low-rent public-housing in uibiin and rui<xt nonfarm ureas.000. funds required frpm the Federal Government in. commence construe nun which is nuuie u\ailable at the beginning v. authority to. if he finds such action to be in the public interest. 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..000 in each of . \\lifch. Tho const r.050.cs the . This definition. 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. including the cost of capital improvements made at any time during the life of the project. be treated collectively as-one project. more lo^ -rent public housing projects. in a contract. Iri respect to projects initiated after March 1. PHA'may authorize the construction of not more than 150.000 additional hew •dwelling units after July 1.050. in accordance with business practice.iting not more than 100. . by $85.iction authorization to bccomo a\ iiilable at the beginning of 'each fiscal year could thus bo increased to not more than 250.total amount of annual contributions authorization available to PJJA on or after July 1.000.000 units. or be reduced to not loss.006 on July 1. Subsection (j) inakes jt clear that. includes appropriate carrying charges. 1949. Subject to the. than SS .000 additional new dwelling units may be put under construction without further authorization from the Congress. not more limn 1.00.OOOjOOO per annum.000 per an'riuni. in line with the usual. authorization would be increased by further amounts of 880. 1949. insurance. they may. connection with.0. may be increased al anyf time or times by additional amounts aggregating not more. •and any initial operating deficit. where n local public-housing agency is undertaking two or. such as interest.000. It inueai.000 a year (iri addition to the existing authori/utioh). local housing authority overhead.gro<r. respectively.

KOK LAIUiK FA. this section provides that the o to 1 ratio shall be used for all families. ill determining family nel annual income for admission an I'Xempl'. provisions in the act as to local contributions.050. 1947.on of Si00 shall be given for each member of the family (other than-th. or six limes thegross rent for families \\ ith tluve or more minor dependents. bat the amount of any decrease would remain . in the evciit that the full amount of annual contributions cpntr. and Inly 1. or times so that construction of the full 1. remain effective for subsequent iisu. but thai. TJlOMSIOXc. after March 1. available for subsequent authorization by the President at any time .MIUKS OF . local contributions may alternatively be made in cash in an amount not less than 20 percent of 'the annual contributions paid by P1IA. Under this. In order to reserve funds for low-rent housing in urban nonfarin areas. lo project fiscal years for which the contributions date falls between July I. 1949> pay^ '. but if existing contracts on such projects are not so amended. More. ! SKCTIOX 206. 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.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. As.000./ over.006 hew units initiated . there tvill be a somewhat larger s.000 per year and the commencement of construction oh 1.of the projects from all real.pread between the ncomes for eligibility of families with few children and thosu with . 194Q. This requirement of lax exemption is'in-licu of existing. In the event that tax exemption is hot legally available. this section revises. Under subsection 205 (b). 1949. such authorization •would.and pcrsonalrproperty taxes. nc\v provision. shall require exemption . ments in lieu of taxes (unless alrcadj made in-larger a. to permit the construction of lai^iT dwelling units. biit the contracts may authorize payments in lieu of taxes not in excels of . Contracts on projects initialed prior to Mnrciu-1. the requirements as to eligibility fui mmilics with a -reKiUvdy large number of children. 'head of . to projecvfiscal years for which the annual contributions date is subsequent to Ju'y 1. becomes-available.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. of course. 1917. SPKCIAI. payments in lieu of taxes will be liinitciLsolclj' to the amounts provided under contracts outstanding on Juty 1.050.000 neAs dwellings.1949. subject to the total over-all limitations of S400.roju'ct to the beginning of any fiscal year is not fully used in that year.. could eventually be authorized by him. contracts for annual contributions on projects initiated after March 1. In addition to the provisions in section 203 revising the cobl I'tiiiL-JJons so at. 1949. may also include similar provisions in respect.acts-or of construction starts authorized in. 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.ho family or his spouse) who is less than 21 years of ngc.10 percent of shelter rents.000 units.HOUSING ACT OF 1949 49 than 50.

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

demonstration. It may also dispose of the projects to local public-housing agencies in. of the farm labor camps now odministcrcd?by the Secretary of Agriculture. Appropriations to reimburse such hinds for such expenditures are authorized.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 other accommodations. 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. operation of llicse projects under leases or permits and tisc agency funds to pay any deficits incurred in connection with them. Provision is also made that jriot more tlian 10 percent of the total amount of 8428. shall be expended within. TRANSFER AND OPERATION' OF LABOR TAMPS This sect ion provides for the-transfcr to the Public HQusing Administration. as amended.flic United States Housing Act of 11937. any of the methods provided in the United States Housing. SECTION 301 This section autliorix. and methods which will permit progressive reductions in housing costs and stimulate the increased and sustained production of housing. SECTION 208. demand. as amended.HOJTSING ACT OF 1949 51 required either as a result of the substantive amendments to the net provided in this bill o_r have. Unexpended balances of funds available in connection with such properties will be transferred \\ ith the properties to the Public Housing Administration. and standardized duncn- 453 . and in making available necessary data on housing needs. housing under the terms of . 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. effective not later than 60 daj-s after adoption of (he Housing Act of 1949. as amended. Any of such other accommodations may be reserved for rental "to migratory agricultural workers and their families. However. materials. The projects tluit would be so transferred comprise approximately 40 such camps with about l. and promotion of the acceptance and application of new and improved techniques. The Public Housing Administration may continue the.000 provided for annual cbntributionsj nor more than 10 percent of the amounts provided for grants. and concerned with housing economics mid other housing market data. These camps wheiuso traiisfcrrcd will be used as low-rent. to be available until expended in accordance with all of-thc provisions of the United States Housing Arl'of 1937. 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.uOO standard dwellings and 9.000. Act of 1937. section 2 (1)--preference shall be given familics.of migratory farm workers in the occupancy of standard family dwellings. any one State. and supply.-beeu shown to be necessary as a result of experience under the bill.

however. HOUSING ACT'OF 1949 sions and methods for the assembly of home-building materials and' •equipment. When Federal agencies conduct studios or surveys for local bodies. 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.most useful to industry and to the general public. 454 . of urban and rural nonfarm housing needs and the progress being made in meeting those needs.upon the books of the Treasury for ah additional fiscal year.disseminated in such form as shall be. 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 . educational institutions. It also exempts the dissemination of the results of such technical research. and make rccomincndai^ns to. for developmental research. SECTION 303 This sectiuii authorizes appropriations to carry out the purposes of the title. and plans with respect to their ow. The section further luiilcihp'Iatcs inventories to bo made by the Administrator. contracts-must be performed and payments made within 2 years after tlie fiscal year. surveys. 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. The section further provides that tho Administrator shall consult with. and other nonprofit organizations ^. 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.and studios from the existing provisions of law prohibiting. and other Appropriate agencies in carrying out the research program. educational institutions.The next to the last sentence of the section is merely de^ claratory of the general principle that research conducted-with-public funds should redound to the benefit of the general public. free of postage^ reports and other documents unless a request therefor has boon previously received by such agency. . and authorizes the Administrator to encourage and assist localities to make studies. such laboratories are frequently i-cluctant to tie up their facilities in short-term projects offering ho assurance of completion. (Under present authority. Many research problems are complex and require for their solution a scries of time-consuming successive steps. The section also provides that the results of such-technical resoan-V and studies shall be. as accessary. 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. in which undertaken.laboratory research.52 .) This includes contracts.n housing needs and markets.-any agency from distributing through the mail.

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

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

the Secretary will also IK nutlxirizcd to.. and.. In extreme hardship cases.--agree to make annual contributions.s without unduly impairing his standard of living. the be rrowur is unable to continue to make scheduled paymen. when such improvements arc ncccssaiy to make the dwellings i. The maximum grant with respect to any one dwelling or building would be S500.farm capable of supporting adequate housing anu farm buildings AVith respect to such a farm. period of not more than 10 years.. 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.with such plans and specifications as may bo required by the Scu clary. such as roof repairs.es the supervision and inspection of construction to the extent which may be 157 . 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. and to a mnximu. . shoul.HOUSING ACT OF 1949 55 and interest within the maximum period of the loan. his family or the community.000 financial assistance under this section to any one individual.and conditions as'loans made under section 402. within a 10-year pcriud.. by the improvement and enlargement of the farm or adjustment of farming practices or methods and thi. This section also authori/. SECTION* 404. SECTION 406. on tlie same terms. no deficiencS1 judgment \\ould be taken against such a . the Secretary would be authorized undci this section to make the Joan. structural supports and similar improvements. or repairs made with (innncinl assistnnce under this title ahnll be substantially constructed in accordance. if the income of the applicant can be sufficiently increased. In connection with such loans.iently he necessary. or building. and eligible applicant could secure from the Secretary a grant or combination of loan-ami grant to cover the cost of improvements or additions.n of $2. due. >rro\vor if ho hnd faithfully tried to meet his obligations.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. will accrue only to-tlic benefit of the borrower or to such other 'eligible persons us the Secretary may determine. withhva. convenient and sanitary water supplies. screens. SECTION' 405.into a. interest might lae canceled during (he moratorium. dwelling.nd buildings safe and sanitar3' and remove hazards to the health of the occupant. A combination loan ami grant is limited to §1.000 with respect to any one farm. TECHNICAL SERVICKb AND RESEARCH This section provides that all new buildings contructcd.applicant hus_ adopted or will adopt a plan-to so increase his income.l foreclosure Mibscq. toilet facilities. to circumstances beyond the bonder's control. This agrccmcntj -with respect to credits.

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

connection with loans made uiiden. 57- this title. SUCTION .000.'arm'Tiuant.04.SECTION 410. SECTION* '111. 1049. and 8100.obligations arising tinder ttiis title in. with the assistance of the At-lornej' General and tho Uixited States attorneys.. respectively.oySl..000 to bo available 6n and after July 1.-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. ^ Tins section enumerateso-rtai n powcrs. Of most importance among .claims and. 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.the financing of loans to farm o\snei-? by means of funds mnde available to the Secretary of Agriculture I y the Secretary of .000.9 . and such additional sums as maybe-determined by the Congress from time tr> time to be made available on and after July 1.* so 450 .to be vcstedin.000. 1951.ut: S. 1952.\I>S This section authorizes. 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 . 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. and: the lease.the Ba.aiul sale of such security properly on tr>rms and conditions-determined by tho Secretary to be reason able I nder . 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. Uie bidding for and the.000.ib)"~ are alsomade applicalilt to'claiins-undefthis ti. This ="ftion also includes such servicing authority ao collection of clajms and pursuing them to finaljudgment. Actapplicable to programs administered by thcl5ci reiary ol AgntlilturT (. July 1. ADMINISTRATIVE PROVfsiOXS '.000.112.this provision. 875. at foh-flosure sale or otherwise. of property securing obligations under (hi* title. LOAN FU.the manner which Jias been successfully undertaken in. Act. .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. if iicccssar1 . in an}' court of competent jurisdiction. One of the most'effective devices in (lie servicing t)f loans is the power whij. HOUSING ACT OF 1.nkhcad-Joncsi. -the contemplated loan program begins with 825.. . operation.tle. the Seen tary which arc necessary in the administration of a program of this iype. such tenants for benefits which inure 'to the landowner.000.these is (lie authority to compromise' _ . Under this section. nud July 1. security ]>roperl3' acquired in liquidation of obligations can be disposed of in furtherance of (he-principal objectives oFUio act. . The provisions of'the JGeneral Holit-Scttlcmci. 1950. These sums will not exceed 850.. purchasing..

or both.Uhil >. attorney.v or directly or indirectly interested "-before any agency.000. prohibits any . United States Code.-person within 2 yi-ars after employmeiu in niiy ag. or ngenf lor prosecuting. ADVISORY COMMiTTEES .. It also. any claiinsj ni. or both. section 283.000._ This section authorizes the Housing and Home Finance Adminktrator to-appoint such advisory committees as may be necessary in carrying oiit his functions. 41)0 . respectively. prohibits au ofT. 2S.1949. Authorization is provided finally for sums to be appropriated for the research aiid technical services! and for general administration of this. will not exceed S50p. 1951.000 for temporary repair grants under section 404. contract. . • -'This section also provides that service as a member of any suck mhisory committee shall not constitute any form of service or em-.ftnd$2>000. United States Code. plovmcnt witliin the provisions of title IS. years' imprisonment.000. section 281.OOOj $l>o66.500. proceeding. to bi> made on and after July 1.tillc of the bill. clahr. authorizes an initial appropriation of Sl-..000 or imprisonment.000. or not more than 1 year's imprisonment.dOO.000.OQO-»rcspcctivcly.000 or not more -than 2. to those calling for additional annual credits of not more than $liOOO.osecuting or acting as counsel.'. in the amounts of $2. and 1952. " _ " _ . section1 281." 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. andTimits additional commitments pursuant to the same section made on and after July 1 of the years 1950.1951. charge.ciisationi for any services rendered or to be rendered in relation to am. Tilli' 18. Title 18. Jt provides-n fine of not-more than $10. from ])r. section 284. accusation.1949..ul provides a fine of not more than $10. and additional appropriations for this purpose to be made available on and after each of the years 1950. " . and 1952.OOOi and $5.600. United States Code.l Stales.. powers and.'iicy of th.{. United States Code. -and' provides a fine of not inqro than $10.cer or employee of the United States directly or indirectly from receiving or agreeing to recui\e any citiui. controversy.ainst tho Unit ed States involving any matter directly connected \v ith -A hick such person \\ ns so employed or performed duty. Title 18. a. 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.58 - HOUSING ACT OF 1940 that the aggregate contributions or credits under 'those agreements made oh and after July 1.'.part. TITLE V—MISCELLANEOUS PROVISIONS SECTION 501. nrrcot or other matter in which the United Stales is a. $4iOOO. for not more than 1 yenr. SECTION 413. court or commission. duties :uader this or any other net..pcr annum for not to exceed 10 years. or 284. or both.

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

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

SECTION* sbs. the Housing and Iloniu . A Inch-included information about the number.section of the bill. lTowo\cr.public-housing-agency operating the . ft also provides that. of Columbia Redevelopment Act of 1915 is continued in full forco and c/l'cct.Redevelopment Land Agency. and (c) the . to take a lionsiug census (similar to that first taken in 1940. 3 This section provides a permanent authorization for the Director of the Census.ii! this bill makes necessary thed'epeal of a. 463 . (ho District. Territories.project in the. values. in the year 1950 and decennially thereafter. the District of Columbia) die power to accept financial assistance which would be authorized under title I of 11.\goncy tomake casli payments of such duficicncics from the funds of the District of Columbia and to nuthori/.power to acquire site" for lo\\.) in conjunction with and as a part of the population inquiry of the decennial census. in thoeuuit such local gninU-in-nid arc not suflicient to meet (lie local grajiU-in-aid rcc|uiieinenl. the National Capital Housing Authority. characteristics. 4009. geographic distribution. under title I of U.bill. to the same extent ns local grnnts-inaid are approvable for other cities and Stales. State makes application to the Public Housing Administration for Federal assistance for the project under the. HOUSING-ACT OP 1949 - 61 Housing Act of 193t. 4009 on the same basis an-. as amended. SUCTION 509.1 to-the ^aiiio cxlonl that the State*. SECTION" 507. R.=>iinilar<yro vision contained in section o03 of the Housing Act of 194S wliich applied only to projects -\\hcre-a State contract -was made . ns amended.of. R.prior to January 1. as amended. rentals. The section niithurix. and other municipalities would he authorized to paiticipate. Under the. NATIONAL CAPITAL HOUSING VUTHOUITY This section-would restore to the National Capital Housing Authority the . It authorizes the participation of the District of Columbia .Finance Administrator may rely upon agreements entered into betwcon t lie District Commissioners and the District of Columbia Rcduxulonnumt Land . Without this amendment. whore necessary. quality.-j-ent public housing projects assisted under the United Stales Housing Act of 1037. R. DISTRICT OF COMJMHIA PARTICIPATION" This section makes available to the District of Columbia the benefits proMdcd under titles I and H of the bill. 1949.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. 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. CKNSUS OF HOUSING . -. the District of Columbia would not be able to obtain the benefits piuvided by title It of the bill. 400'J. Its inclusion.provisions of this . and other appropriate agencies operating in the District of Columbia to recehc the benefits of titles 1 ami II of IT.s.--terms of the United States Housing Act of 1037. including the amendments contained in title II of the .o approprintioiis to the District Commissioners for such purpose.'. etc.

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

" . thi. under the applicable laws of th* Stale. are detrimental -to safety. in connection \\ith a lowrciit-huiiMiig ur-nluiii-clearancc project. ON ercruivding. or repair.\cluding the Authority). operation.family (other than tht-hea'd'uj 'the 'family and his spouse) of cither (a). aiui-ui'ier facilities). and sanitary-dwellings for their use. income" means families who arc in the Iowcst= income group and who cannot afford . term ''development" means any or all undertakings n. if there shall be two_ or more such rales of interest. improvements. 19S.lcastd thcrefrorii under conditions other than dishonorable. construction. (•M) The term "tcttrun" shall mean a-pcrson w'Ao has served in the actirc military or narnl service.>f. the District of Columbia. (4) The term ' slum clearance" means the demolition and removal of buildings from any slum area. ' (9j The term "noiuhvelling facilities" . developed and administered.. (G) The term ''administration ^ means an\ or all undertakings necessary for management. . agency in such undertakings and : Ihcir necessary financing (including the payment of carrying charges.equipment. (2) Tlic term "families. is to lit. but not bi.shall include sito devi! pincnts._ (S) The term "nicjuisitiuii eo-. of the Federal Government having a maturiiy of tun jvars or more. other heating and making fuels.*'ng •agency »nji/ allow.to pay. sidewalks. or .eci -sarv. [financing (inchming payment of "carrying charges). by reason of dilapidation. siiljsecinent to ph\sical completion. ai"l tn nlhcncisc tarrying out the devcippniint of such project.0. winch is authorised to engage in the development or administration of low-rent housing or shun clearance. nf //if dale oj Presidential approval of the contract /mrsxtiut to whu. or. . The Authority shall enter inin contracts for financial assistance with a State or State agency where suck Stalt. 4. The.orals.$100 for each minor miembtr 6} the family other than thc-head of the family and-hi. flwrf who shall have-been discharged or re. oj admission. a'nd-saniiary. and other utilities) of the d. health. less an 'exemption .\und-ihc point of physical completion. safe. dependencies. or State agency makes application for snch assistance for an eligible project which. county. faulty arrangement.63 time. 5/00.ico/i>c/y. 10^7.igency in tciiuiring a low -rent -housing or slumdearnnce project. W/. but-not beyond the poinlof physical completion).tu the ret ^instruction.. of the United Slalis at any lime on or after September 1(1. annual income of such minor.' of icatcr. .65 . and prior lo July 2fl. lack of ventilation. demolition. 10/. light. or. by such Stale or Stale agency.of existing buildings. going Federal rate shall be deemed to be not less than 2% -per centum. and prior to July 30. (7) The term "Federal project" meant. any pqrtoftht.HOUSING ACT OF 1949- ' . For the purposes of 'this .of low .s who has served therein on or after September 10.-cllings to bc-furnished such families. (12) The term "State" includes the States of (he 'Union. remodeling. anv i>rojcct owned or-administcred by the Authority.the sole purpose.ca where dwcllings-. For . in the case of loans 01 iinnual contribulionn. financing. (3) The term "slum" moans anwar. does not cffeed fiee'tiines the annual rental-(iiicliiding the value or cost to thei. 'or continued occupancy. term "serviceman" shall mean a person in the active military or naval service of the I'nitcd Slat.! lain! ac< 'nation.. (5) The. ' " . drctriril'i. the highest thereof} specified in the [then] most recently issued bond.it^iilc buiUling walls (including . utility. municipality.21 years of age. Constructior .acti\ity in cpnncctidii «itli a low-roiit-housing project ma\ be coiifined. a public hou. in connection with a low-rent housing . from the -ncl income of rni/'/tuniYj/.7.0.]' The term "development cost" shall comprise the costs incur. determined. or other governmental entity or public bod.li such loan* or contributions arc made: Provided. the amount prudently required to be expended uy a public-housing .[pr slum-clearance] project[.it reels. spouse. or ir. maintenance. and facilities located u. housing. enough' to cause private enterprise in their locality or metropolitan area to buihl an adequate supply of decent. a minor shall mean a person less lhan. «/ '><j a pv'^ii.subsection. and the Territories.of determining eligibility . design. or (6) all or. and possessions of the United' (lu) The term "Authority" means the United States Housing Authority created by section 3 of this Act. That for thc-piirposcs of this Act. or sanitation facilities or anv combination of these factors. gas. (10) The term "going Federal rate [of interest]" means -[at any time] the annual-rate of interest (or. (1 1) The term "public housing agency" means auv State. rcs.prcdoininatc which. for planning.t" mean.v ie. an eremption far-each minor member of thc.

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

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

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

. to families tciiiih arc to be displaced bi/ any lotrj-rcitt hoiming project nr by any public •iliitn-rlrarame or rcda-ilo/nncut project.all annual contribution* contracted for. or may.'iO. The-faith of the United Status is solemnly pledged to the payimsut of.. Tho term "any loan due to-(lie Authority" ns used in (his section shall n<< •" •. upon a determination by the President. With respect to projects initiated after March 1. for annual contributions aggregating.c million and fifty thousand dinr.000.^ual amount. including 1955./. That (siibject to-ihe told additional authorization of not more than $400. to/cntcr into contracts \\liich provide for annual contributions segregating not more than $28. that such action is in the public interest. 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. niul there !•> hereby authorized to be appropriated.subsection) is authorized. no nc\v contracts for nnniml contributions bi. rt of suJi increase upon conditions in the_ building industry and upon the national economy. »"ni/ be incrrg&ed at any tune or times by not to exceed in any fiscal year an addit. be available only for annual contributions contracts with respect to piojecls to be heated in rural nonfat.lKnrj units without J»Jhcr authorization from the Congress. (c) The Authority is authoi^ed.?<i.sitiK agency to assist the de\ulopment .ujs for occupancy in-dwcllings of <jicen sites ami. (f) IVi\incuts under annual contributiuiis contract* shall be plcdgud as security for anylJoaiih obtained by a public luin. afar receiving advice front the Council of Economic Advisers as.-•>. 19Jtit./ lowrent hi *i»j project initialed after March 1.vond those herein authorized shall be entered into b\ the Authority. That contracts for annual contributions with resncct ia low-rent housing projects initialed after March 1. thousand dwelling units after July 1.on July 1.000 per annum) such limilj and any such authorized increase therein.000. icith the approval of the President.pursnant tu this Auction. for-a period.9. loan made b. And jirovided further.000. on and after July 1. 19. shall not provide for the dcrclonmtiit of in(. With respect to^projects assisted pursuant to this Act. not more .to the general erf.T aa/uLlion of the housing project to \\hich the anniinl contributions relate [: Provided.that such action is in.J as among-suchfainilits where an a/i/illi-atiim fur admission is made i nl later than fire years after . af thrc*.000 on July 1 in each of the years 1950.$80. And provided further. 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. which limit shall be increased b. and by $75. 19. on and after the date of the enactment of this Act.re than of..'iO. That (subject to the authorization of not to exceed one million and fifty Uiousund dwelling units) such limit..'. the Authority (in addition tj the amount autKorized-by the firs.. 1949. may be increased at any time or times by not to exceed in any fiscal year an additional one hundred thousand dwelling nnitf. which limit shall be increased by further amounts of $80. as among loin-income families which aic cligi'ili n/.000 upon a determination by the President. shall rtnitirc that the public •housing agciicii.000 ^cr annum. first preference shall be (lircn to families «/ disabled veteran* whose disability has bcni dcttrminui bi/ the Veterans Administration to be scrijcc-coniicctcd. the Authority may authorize the commencement of construction of not to exceed one-hundred.000 per annum. 1953.000.in each fiscal year.000. 195{. ai. "id 1952. to enter into contracts.than $85.bt decreased at any time or times l>u not to cjre-tcd in-anyfisetil year one. shall extend the following •preferences in the sclcclinn of tenants: l'!:sl.y further amounts of'one hundred and fifty thousand dirclling^iniiton Julyj in each of the years 1950 through and. and fifti. the amounts necessary to provide for such payments.Vnrc/i 1. of .-o appnpriaicd. sentence of this. and any such authorized increase therein. respectively^ Provided.ccii nn of each amount of authorization to enter into contraclsfor annual contributions becoming available hcrnndcr shall. and scroud preference shall be 469 .such capital and funds) shall not b<_ available for the payment of such-annual contributions.'i9. out of any money in the Treasury not <ither\\i. hundred thousand dwelling units.the publ^ interest. 19. Without further authorization from-Cungi•.HOUSING ACT OK 19-19 67 of loans made out of .. respectively.000.at spceificd rrnls.\ 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.it areas. 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. That 10 pcr. years after such amount uf authorization becomes available.000. Provided. IQ.

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

Providid.not inorc tlian 810. title 40. Without . (d) Tim Authority is authorized. and maintenance costs. The lessee of any project. 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. to make capital grants (pursuant to subsec. less such allowance for depreciation as thu Authority shall fix. the President may allocate to the Authority. " (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 .). PROJECTS _ SEC. capitalized.this section) aggr gating .000. a contribution for such project (in the foiin of cash. (n) The Authority may foreclose on any property or commence any action to protect or cufoicc anj right conferred 'Tpoii it by any law. to provide for the completion and temporary administration of such-projects by the Authority. together with payments. or other agreement.further authorization from Congress. than $10.involved. 12.iy in connection with the development of any low-rcnt-housihg or slum-clearance project.] aupual [contriljiltions ]Jiraiiant to section 10J contrilw- 471 . operation. The Authority limy bid for nnd pjirchasc at any forcclosuro by any party oral.-. (c) To supplement any capital grant inadcby-the. 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). operation. or (pursuant to scclion-23 or o//icnmc)-[othcr\MM-3 acquire or take. pr the value. or otherwise. 'f"an. C. 321 of the Act of June 30. arc consistent u i t h muinlaining the low-rent character of such project.AutIipi.69. to make additional capital grants aggregating not mor. 1931 edition. phis such additional amounts as the Authority shall dc UTinin . and oh or after July 1. pursuant to this paragraph. if any.000. 1938. 13. no capita! grants beyond those herein auth. (c) Tlie Authority may sell a Federal project only to a public housing agency. together with pay incuts. shall assume »nd pay all management. 303b). from the State..000.-to-inake additional. anj other sale. on or-after. made out of such capital and funds. 1932 (U.capital grants aggregating nut mure tlian §50. ~ (u) In the adininist ration of an. 193'.000. and.^y the Authority through the sale or leasi-g of such projects as hereinafter :providcd.000.v Federal low Trent-housing project. or tax remissions or tax exemptions) in an amount not less than 20 per centum of its development or acquisition cost. the Authority shall TIN the rentals nt the amounts necessary to pa^' all .capital'graiits. DISPOSAL OF I SUEIIAI.capital grant tc be expended for payment of labor used in siich devclopmeiit. That such additional capitaXgrant sliall not exceed 15 per centum of the development cost of the low-rent-housing or slum-clearance project. . (b) of. sec. OKXK1UI. (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.orizcd sliall be made by the Authority.•j HOUSIXG ACT uF 1949 . contract. shall not apply to any lease pursuant to this Act. from any funds available fur the relief of unemployment.at tlieguing Federal rule of interest. (d) The Authority may lease any Federal low-rciit-housing project. (b) As soon as practicable the Authority shall atll iu> Federal (jrojccts or divest itself of tlicir managements-through leases. political subdivision thereof. Am such sale shall be for a consideration. of community facilities pr services for which a charge is usually mmle. Such prbjci t shall (hen become eligible for loans pursuant to scctioii 9. pending sale ' or lease. and cither annual contril iiitiont pursuant to section 10 or a capital grant pursuant to scnMon 11. an additilnal .' in lieu of taxes. rOWKItS OP TUB AUTIIOKITY t SKC. S. in order to continue the relief 61 tlu Nation-wide unemployment and in order to avoid waste pending such sale or lease. to a public housing agency.. niaimgetiient.capital grant shall also receive. land. and maintenance costs.000. iii~wlratcvcr furin may be satisfactory to the Authority. in u hole or in part. 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. 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. in lieu of taxes. Jiily 1'./ shall not be available for the payment of such . on or after the date of the enactment of this Act.

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

necessary by the Authority for the safety or health of children. taking into account the level of construction cosjs prevailing in the locality where such project is to be located.'such agency.250] per room (excluding land.t. of any sums previously allocated pursuant to this \ct. demolition.cd to make capital grants. involved if deemed. inay. under the legal building requirements applicable to the proposed site. it to this Act.lit.itions authori/. involved: Prowled.cond:tioiis.connection with the housing project. That any snch'0. and (if) Mart..jcct without sacrifice of sound standards of con•alruction.. exceed:[$5. and economy will be promoted both in coiioiruction and administration.['a)] that such projects will-not be of elaborate ur-[c.dceii iiecessary in order to insure the low-rent character 1 of th? housing project. [and (b) that the a\erage construction cost of the dwelling uniU (excluding land.shall make loans. 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. (G) Notwithstanding the provisions of subsection (o) of this section.000] $1^50 per rooin (excluding land. such. or annual contributions by . That' the amount.. The receipt of capital.. grants.000. loans.cd by this Act arc calculated.capital grants. loans. other covenants. ihe population of which exceeds 500. main construction contract for such .be entenid into with respect..f-siic.initiated costing] equipment of not to.usLlimilalions which may ejected bij not more lha» $730 per room . to a'1.aniL. sale.such a\ cinge ai tunl cost: Pr.y manner including a bpna fide foreclosure-under a mortgage or •other-lien held-by a tliifd party. he may prescribe in such conlrt-ci •. upon cowl (ion H.<. or of any other section of this Act. or annual contribution:) for luu-rent-housing or sunn-clearance projects.-. and nondwclling facilities) in any such project is not greater than the average construction cost ot duelling in its currently produced by private enterprise. will pay. annual contributions../n«/-design or materials.:i: acute need for such housing. of any such pay incut shall be excluded from Hie base on which the maxim. in the locality or metropolitan area concerned.^Ksign. of capital grant ivmde pursuant to this Act shall ib"e entered . and under labor standards not lowcr-thnn those prescribed in this Act. demolition. shall proridc that no award of the. at the request (.it.\i Inch construction is hereafter initialed.]: any such .bhtract for~a:substantial loan limy contain'a condition requiring the maintenance of'an. and aiinii. tli.embodied in such contract) pro\ iding for the maintenance of the lojv-n-ht character of the housing .\peiisi\c].\laska [any city. in thc-cvunt of a substantial:breach of the condition "(\v]iicIjv»liaH be. [With respect to housing projects on. (-1) The Authority-ma. soccifiailly approved the amount of such wain construction contract. demolition. and npiidwclling facili'Jcs).the liinita. JO. payable under such contract. or annual contrib. mortgage. . except that in the case of . 1949.. leesc. to reduce or terminate thr annual contributions. loans.iiiy public-housing agency pursuant (o this 47. or cause to be paid by the Stacc or political Mibdmbion.HOUSING ACT OF 1949 - 71 (3) When a contract fur animal contributions is made pursuant to section 10./ low-rent housing project initiated after March J. annual contribution.'iS.OOQ per family duolliig unit or more than §1. or any other agreement -or instrument made pursti.contract -may . public housing agency. having a. having at cost for construction and equipment oMnori.h agency.mi amount of any capital grants. That if the Administrator finds thai in the geographical area of any project (i) it is not feasible under the aforesaid cost limitations to construct the prt.iojccl shall be made unless the Aiilhorili/. 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!.-s thereof bcaro to .000] £?.'ions-thal icould otherwise lie applicable to such project hcrcnndcr.] In order to attain the foregoing objciticc.oridcd. nery contract for financial nxsislancc entered into with respect to an. than [SJ. (5) No contract for any sloan. or provisions-aa it.. the Authority Is authori/.. the] The Authority . grants. shall have.o00 [per fainily dwelling unit or not to exceed SI.cosljor construction ami "[hereafter . such animal contributions shall terminate.a third party in ac.\cc. in the full amount.into by the Authority with respect to • anj low-rent huiisiiig proji-ct [hereafter initiated costing] complcteil tifler _ January J..c Authority sliahi retain tlip-right. opcn> space or playground in .il contributions only for sucli low-rent hoiiMng projects as it fiiuls arc to be under taken in sucli a manner . is. In the event of the acqiiisitio.«/rti.abiliiii.3 .project involved. to a project.n of Mich project by. also insert in any contract for loans.

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

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

"u. . or local taxii g authority. be allocated to the Authority for the purposes of this Act.-.000. municipality.. estate.. in .lionsfor •/iiirchasc by /. 1938. as amended. t..Secretary of the Treasury in likewise* authorized to purchase any such obligations. (n) Any monoy of the Authority not otherwise employed may btr deposited.«) Such obligations may be marketed for the Authority at its.V Sn. tahing into ioH»iJt. and sales b* liim of such obligations shall be treated as public-debt transactions of the United-States. lid) Such obligations shall be lawful investments and ma* be accepted as security for all fiduciary.thr n ^roval of the Secretary of'the Trcaxury. bear such rates of.sc . mature within such periods not exceeding sixty years from .as to the payment. county. and the purposes for whicli securv'ics may be issued under such Act. Such notes 01 -other ollin'.l average rate on outstanding marketable obligations of th<. and gift taxes) how or hereafter imposed by the United States or by an* State. Such italic oi-ulher alligations shaK-fa.000.available under any Act of Congress for allocation.iberty Itolid Act. from all taxation except surtaxes. rt* amended.ir whit 'i sccmi'ics in ty be. Such obligations shall be in such forms and denominations.»f obligations of the United States.(litions. 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.000.nsucd under such Act. shall haw such mnturt!it-. exclusive of an* obligations which may l>c issued for rcfinming purposes. The Secretary . be subject to such terms and ci. acquired by him pursuant to this section. arc extended to include any sucb ^purchaserTile Secretary of the-Treasury ma* at any time sell any of'the obligations.and oilier ofc/. 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. Secretary of (lie Trcaxury is authorized and directed to //«r</m. which it may sell to obtain funds for the purposes of this Act. with the Treasurer of the United" States or in'any 476 .date of issue.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 /.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.nrrci.. and the inirp. IS. inheritance.itwns sit til IK in such forms an * iniimilionf. and all rcdcinptijii-.. ng al any one lime notiA.. and fur such purchases he ma* use as a public-debt transaction the proceeds from.' and all receipts and assets of the Authority.] The.\«<hvri. of the Treasury may at any time. $• jjcrl to such terms anil wititiliomi us maif be prescribed bu thr . Such suhi.. All rcdeiniilinns. the sum of 826. purchases. SKC.ale <lclcrininc<l lt>i the Secretary of the TruiKurif.. oiilstand.000 shall be available to'pa* the sub-* script ion to the capital stock of the Authority. SKC. subject to check. Receipts for such payment.74 HOUSING ACT OF 1949 any u*aijablc funds. L'niled StaUs us of tin.000 for the fiscal 1 year ending'June 30.the snip of any—i*ruriti(a> hereafter issued iiiiJcf the Second Liberty liv-nct Act. Authority may i^suc and have. lie) Such obligations shall be full* aiid uiicu. of both interest and principal. of \\hich 81. till the facilities of the Treasury Department now authorized b. To the extent of such payment the Secretary of the Treasury shall succeed to all the rights of the holder. 19.and shut) lit.'bbth as to principal and interest. Any funds .rctiucst b* the SccruUi'ry of the Tjcasury. 20.ng..000. 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.* Vaw for the inarkct. |(c) The Authority is authorized to issue obligations in the form of note*. The .nltrist at a . out of any money iiv the Treasury not otherwise appropriated. arc. shall be available for the purposes of tlib Act until expcndf'. and sales by the Secretary of^the Treasury of smh Milts or other obligations shall be treated as niiblic-debilransacliojut of Ihc United Stales.iscsf. £(.000.500. SKC. There is hereby authorized to be appropriated. Lib) £Voh obligations shall be exempt.forvhuiising or slum clearance may.iditionally guaranteed upon their face by the United States.rt. The Authority may issue Midi obligations iivan amount not to.tary of Hie T't -isunj m an amount not to exceed $1. or otherwise. iitilizint. sell any of the notes or other obligations acquired by him under this section. i. extended to include any purchases of such obligations. 21.iemfcd.000. Hli.the discretion of the 1'rcMdciit.... and.radon tht. bond. in the event that the Authority shall be unable to make an* such payment upon demand **Iicn due.:>. purchases. The. as a'. last day of the month preceding Ihc issuance of the notes or other obligations by the Authority.exceed' 8800.iiPJrest hot exceeding 4 per centum*per annum. '«s amended. trust. SKI.

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

under which he or it shall do business. Any person who shall receive any compensation. and iii. Public. any issue.or an\ officer or employee of the United States. § ol30. or any special benefit which he expects to receive as a result. 24 of this tltlo. upon conviction thereof. solllnc.S. [30] 31.or imprisoned for not more than one year. exceed at any time 10 JX. The President is hereby authorized to make available -to the Alley Dwelling Authority. 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. £2-1] 25. express or implied.76 HOUSING ACT OF 1940 of-the Authority and to moneys and properties of the United States entrusted to the Authority. 2025). [27] 2$. [29] SO. be fined he! more than $1. * * * a national banking association * * * shall have •power— * * * * * * * Seventh. or the. shall not be affected thereby. That the n. SE_C.no ca. ProtitM. approved June 12..$. approved Juno 29. Numbered . or both. held by the association fur its own account. SKC.ihnll bosohjrcl to. or employee.<i Out "Sl. or both. In no event -tlmll lliu tola! amount of the ii>\ eminent securities of any one obligor or maker. or agreement. fine not cxcccdinK $1. it is hereby declared to be the" controlling-intent of Congress-that if ar. with intent to defraud thO Authority or with intent. -tW o( iho Sinic llilc |iro\nlr. as the name or part thereof.-e fur its o\\u account. 21 of tUlc 12 ol (lie 1'nllcil SlnlcJ Ccxlo (lOir.xsary to carry on the business of banking * * *. SKC. application thereof to any person or circumstance. 2035). shall.-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. Any person who.0 arc . or other order thereunder.*partnership. No individual.000.'oificer. . Numbered 307. shall. customers.ward. Seventy-third Congress).of securities or stuck.tlc mcmtxr linnks (of tlic Fcilctn) Itwrvc Sy»Icm| .not more than 81.000 or impri-uhcd for not more than one year. U. Wherever the application of the provisions of this Act conflicts with the application of the provisions of Public. subject to Ia\\. collusion. fund * * *.iWc In the fsvsc of national tanks under pantiraph 'Sovcnth' of sec. the remainder of this Act. M. be fined hot more than 81. this Act may be cited as tbe ''United States Housing Act of 1937". 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. or any other Act of the United States dealing with housing or slum clearance. is held invalid.unlawfully..T centum of Us capital stock act nail j paid in and unimpaired and 10'pcr centum of its uninv paired surplus. or corporation shall use the words ''United States Housing Authority".than one year. association. all Mich incidental powers ns shrill be ncce. or any Executive ord_er. [25] 26. or the..Vt at llic Hcvlurd Slnliurs) l> In ttc.of such contract. SKC. regulation.u>i. solely upon the order. SKC. The business of dealing in securities-and flock by the asocial ion . upon convictioivthcieof. the provisions of fhis Act shall prevail. upon conviction thereof. SKC. iindrrwrltlnif.hc same liniliaiions anil c. or shall enter into any con-piracy.1 To e. SEC. legal or cquitablo.• bc'fincd. [26] 27. [23] 2. ot-botli.\ authorized officer* or agent*. or any combination of these four words. to defeat its purposes. rebate. such sums as-he deems necessary to carry out the purposes of the District of Columbia Alley Dwelling Act. makes any false entry in anv book of the Authority or makes any false report or statement to" or for the Authority shall.000. Numbered 837.application of such provision to persons or circumstances other than those as to which it is held invalid.000 or im-prisoncd for not inor&. THE NATIONAL BAXK ACT . Notwithstanding any other evidences of the intention of Congress.y provision of this Act.ihall bu limit •<! to purchasing and selling such securities and stock \\illiout recourse.\erci«c by its board of directors or d«l.845. and the association shall not underwrite. cillllnm. with intent to. SKC.lr. 103G (49 Stat.thereof. 1936 (49 Slat. 1934 (Public.See." 478 . which he has in such property or in the property to which such contract relates.millilons nllh rrjffcl to »lio Imrcliajlns. Except as hereinafter provided or otherwise > This provision (sec. Any such use shall constitute a misdemeanor and shall be puniahaoi" bv a. and holding of Investment MCUTIIK • ind stock 0. appp icd June 29. and for the account of. [28] 20. or re.defraud the Authority or to deceive any directcr. from any funds appropriated or otherwise provided to carry out the purposes of this Act.

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

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

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

.80 :i HOUSING ACT OF 1049 contribution:) under the provision.ended. 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. as amended: -Provided.the project-to a: project VvithrPcdcral uisistance shall be deemed. as ah. for the purposes of the provisions of section 9 and other sections of the United States Housing Act of 1937. That loans inaae by the Public Housing Administra-* tion for the purpose of so converting . to be loans to assist the development of the project. of the United States Housing Act of 1937. .

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

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

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

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

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