§702

PUBLIC WORKS PLANNING ADVANCES

EXCERPTS FROM THE HOUSING ACT OF 1954

[Public Law 560, 83d Cong., 68 Stat. 590, 641 40 U.S.C. 4621]

RESERVE OF PLANNED PUBLIC WORKS

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SEC. 702. (a) In order (1) to encourage municipalities and other public agencies1 and Indian tribes to maintain at all times a current and adequate reserve of planned public works the construction of which can rapidly be commenced, particularly when the national or local economic situation makes such action desirable, and (2) to help attain maximum economy and efficiency in the planning and construction of public works, the Secretary 2 is hereby authorized to make advances to public agencies and Indian tribes (not withstanding the provisions of section 3648 of the Revised Statutes, as amended) to aid in financing the cost of feasibility studies, engineering and architectural surveys, designs, plans, working drawings, specifications, or other action preliminary to and in preparation for the construction of public works, including in the case of public works to be constructed in connection with the development of a medical center, a general plan for the development of such center: Provided, That the making of advances hereunder shall not in any way commit the Congress to appropriate funds to assist in financing the construction of any public works so planned: And provided further, That advances outstanding to public agencies 1 and Indian tribes in any one State shall at no time exceed 1212 per centum of the aggregate then authorized to be appropriated to the revolving fund established pursuant to subsection (e) of this section.

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(b) No advance shall be made hereunder with respect to any vidual project, including a regional or metropolitan or other area-wide project, unless (1) it is planned to be constructed within or over a reasonable period of time considering the nature of the project, (2) it

1 Sec. 602 (c) (1), Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 799, added "and Indian tribes".

Sec. 10. Public Law 90-19, approved May 25, 1976, 81 Stat. 17, 22, substituted "Secretary" for "Administrator" throughout this section in order to make it conform to the Department of Housing and Urban Development Act which placed all the functions of the Housing and Home Finance Administrator in the Secretary of Housing and Urban Development.

Sec. 607, Housing and Urban Development Act of 1968, Public Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 534, added "feasibility studies".

Sec. 602(e). Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 799. added this clause concerning medical centers.

Sec. 502(1), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 175, substituted "12 per centum" for "10 per centum".

Sec. 502(2), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 175, amended the first sentence of subsection (b) to read as set forth in the text except that sec. 602 (c) (2), Housing Act of 1964. Public Law 88-560, approved September 2. 1964, 78 Stat. 769, 799, inserted "or Indian tribe" in clause (3) following the words "the public agency". Immediately prior to amendment by sec. 502 this sentence read: "(b) No advance shall be made hereunder with respect to any individual project unless It is planned to be constructed within a reasonable period of time, unless it conforms to an Overall State, local, or regional plan approved by a competent State, local, or regional authority, and unless the public agency formally contracts with the Federal Government to complete the plan preparation promptly and to repay such advance or part thereof when due."

conforms to an overall State, local, or regional plan approved by a competent State, local, or regional authority, and (3) the public agency or Indian tribe formally contracts with the Federal Government to complete the plan preparation promptly and to repay such advance or part thereof when due.1

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(c) Advances under this section to any public agency or Indiar. tribe shall be repaid without interest by such agency or tribe when the construction of the public works is undertaken or started: Provided, That in the event repayment is not made promptly such unpaid sum shall bear interest at the rate of 4 per centum per annum from the date of the Government's demand for repayment to the date of payment thereof by the public agency or 2 Indian tribe.

(d) The Secretary is authorized to prescribe rules and regulations to carry out the purpose of this section.

(e) In order to provide moneys for advances in accordance with this section, the Secretary is hereby authorized to establish a revolving fund which shall comprise (1) all moneys heretofore or hereafter appropriated pursuant to this section, together with all repayments and other receipts heretofore or hereafter received in connection with advances made under this section, and (2) all repayments and other receipts received after June 30, 1964, and all advances (and claims in connection with advances) outstanding as of such date, under title V of the War Mobilization and Reconversion Act of 1944 (58 Stat. 791) and the Act of October 13, 1949 (63 Stat. 841-2). There are authorized to be appropriated to such revolving fund, in addition to amounts authorized to be appropriated for the purposes of this section prior to the date of the enactment of the Housing Act of 1964, such sums, not to exceed $70,000,000 as may be necessary to carry out the purposes of this section.

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1 Sec. 602(f), Housing Act of 1964, Public Law 88-560, approved September 2, 1964. 78 Stat. 769, 799, deleted the last sentence of subsec. (b) which read:

"Subsequent to approval and prior to disbursement of any Federal funds for the purpose of advance planning the applicant shall establish a separate planning account into which all Federal and applicant funds estimated to be required for plan preparation shall be placed."

Sec. 602(c)(3), Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 799, inserted "or Indian tribe".

Sec. 602(c) (3), Housing Act of 1964, Public Law 88-560, approved September 2, 1964. 78 Stat. 769, 799, inserted "or tribe".

Sec. 602(c) (4), Housing Act of 1964, Public Law 88-560, approved September 2, 1964. 78 Stat. 769, 799 deleted at this point the proviso that read:

"That if the public agency undertakes to construct only a portion of a planned public work it shall repay such proportionate amount of the advances relating to the public work as the Administrator determines to be equitable: And provided further".

Immediately prior to amendment by sec. 602 (a), Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 799, subsec. (e) read as follows: "(e) In order to provide moneys for advances in accordance with this section, the Ad ministrator is hereby authorized to establish a revolving fund which shall comprise all moneys heretofore or hereafter appropriated pursuant to this section, together with all repayments and other receipts in connection with advances made under this section There are hereby authorized to be appropriated to such revolving fund, in addition to the amount authorized by this section as originally enacted, the further amounts of $12,000,000 which may be made available to the revolving fund on or after July 1, 1956: $12,000,000 which may be made available to such fund on or after July 1, 1957: $14,000,000 which may be made available to such fund on or after July 1, 1958; $10,000,000 which may be made available to such fund on or after July 1, 1961; and such additional sums which may be made available from year to year thereafter as may be estimated to be necessary to maintain not to exceed a total of $58,000,000 in undisbursed balances in the revolving fund and in advances outstanding for plans in preparation or for completed plans with respect to projects which, in the determination of the Administrator, can be expected to be undertaken within a reasonable period of time."

September 2, 1964.

Sec. 1104, Housing and Urban Development Act of 1965, Public Law 89-117, approved August 10, 1965, 79 Stat. 451, 503, substituted "$70,000,000," for "$20,000,000,"

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(f) The Secretary is authorized to use during any fiscal year not to exceed $100,000 of the moneys in the revolving fund (established under subsection (e)) to conduct surveys of the status and current volume of State and local public works planning and surveys of estimated requirements for State and local public works: Provided, That the Secretary, in conducting any such survey, may utilize or act through any Federal department or agency with its consent.

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(g) Notwithstanding any other provision of this section, no advance made under this section for the planning of any public works project shall be required to be repaid if construction of such project is initiated as a result of a grant-in-aid made from an allocation made by the President under the Public Works Acceleration Act.

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(h) (1) Notwithstanding any other provision of law, if a public agency or Indian tribe undertakes to construct only a portion of a public work planned with an advance under this section, under title V of the War Mobilization and Reconversion Act of 1944, or under the Act of October 13, 1949, it shall repay only such proportionate amount of the advance relating to the public work as the Secretary determines to be equitable.

(2) The Secretary is authorized to terminate, upon such terms and conditions as he shall deem equitable, all or a portion of the liability for repayment of any advance made under this section, title V of the War Mobilization and Reconversion Act of 1944, or the Act of October 13, 1949. Whenever the Secretary determines that there is no reasonable likelihood that the public work, or a portion of the public work, planned with such advance will be constructed, he may terminate the agreement for the advance. Such determination shall be conclusive and shall be based on standards prescribed by regulations to be issued by the Secretary.

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DEFINITIONS

SEC. 703. As used in this title, (1) the term "State" shall mean any State, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and the Trust Territory of the Pacific Islands; (2) the term "Secretary" shall mean the Secretary of Housing and Urban Development; (3) the term "public works" shall include any public works other than housing; and (4) the term "public agency" or "public agencies" shall mean any State as herein defined, or any public agency or political subdivision therein.

Approved August 2, 1954.

1 Sec. 801. Housing Act of 1959, Public Law 86-372, approved September 23, 1959, 73 Stat. 654, 686, added this subsection.

Sec. 602 (d), Housing Act of 1964. Public Law 88-560, approved September 2, 1964, 78 Stat. 769. 799, substituted "$100,000" for "$50,000”. Sec. 6. Public Works Acceleration Act, Public Law 87-658, approved September 14, 1962, 76 Stat. 541, 544, added this subsection.

Sec. 602(b), Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 799, added this subsection.

Sec. 401(c) of Housing and Community Development Act of 1974, Public Law 93-383, 88 Stat. 633, approved August 22, 1974, added the words ", and the Trust Territory of the Pacific Islands".

EXCERPT FROM HOUSING AND URBAN DEVELOPMENT ACT OF 1965

[Public Law 89–117, 79 Stat. 451, 509; 40 U.S.C. 462nt.]

REPAYMENT OF CERTAIN PLANNING GRANTS

SEC. 1112. Notwithstanding any other provision of law, no advance made under section 501 of Public Law 458, Seventy-eighth Congress; Public Law 352, Eighty-first Congress; or section 702, Housing Act of 1954, Public Law 560, Eighty-third Congress, for the planning of any public works project shall be required to be repaid if construction of such project has been heretofore or is hereafter initiated as a result of a grant-in-aid made from an allocation made by the President under the Public Works Acceleration Act.

§ 201

PUBLIC FACILITIES LOANS

EXCERPTS FROM HOUSING AMENDMENTS OF 1955

[Public Law 345, 84th Congress, 69 Stat. 635, 642; 42 U.S.C. 1491]

TITLE II-PUBLIC FACILITY LOANS

DECLARATION OF POLICY

SEC. 201. It has been the policy of the Congress to assist wherever possible the States and their political subdivisions, and 1 Indian tribes Fo provide the services and facilities essential to the health and welTare of the people of the United States.

The Congress finds that in many instances municipalities, or other political subdivisions of States, and Indian tribes, which seek to provide essential public works or facilities (including mass transportation facilities and equipment), are unable to raise the necessary funds at reasonable interest rates.

It is the purpose of this title (subject to the limitations contained herein) to authorize the extension of credit to assist in the provision of certain essential public works or facilities by States, municipalities, or other political subdivisions of States, and1 Indian tribes, where such credit is not otherwise available on reasonable terms and conditions.

FEDERAL LOANS

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SEC. 202. (a) The Secretary of Housing and Urban Development 3 is authorized (1) to purchase the securities and obligations of, or make Joans to, municipalities and other political subdivisions and instrumentalities of one or more States (including public agencies and instrumentalities of one or more municipalities or other political sublivision of one or more States), and 5 Indian tribes to finance spe

1 Sec. 1 of Public Law 87-808, approved October 15, 1962, 76 Stat. 920, inserted "and Indian tribes".

Sec. 501(a)(1), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 173, inserted this parenthetical phrase.

Sec. 12, Public Law 90-19, approved May 25, 1967, 81 Stat. 17, 23, substituted "Secrecary of Housing and Urban Development" and "Secretary" for "Housing and Home Finance Administrator" and "Administrator" throughout title II in order to make it conform to the Department of Housing and Urban Development Act, which placed all the unctions of the Housing and Home Finance Administrator in the Secretary of Housing and Urban Development.

See Reorganization Plan No. 2 of 1968, which transferred functions in this Act related to mass transportation to the Secretary of Transportation.

Sec. 601(a), Housing Act of 1964, Public Law 88-560, approved Sept. 2, 1964, 78 Stat. 769, 798, amended the first sentence of subsec. 202(a) to make clear that instrumentalities of one or more States, and instrumentalities of municipalities or other political subdivisions in one or more States are eligible for public facility loans. Immediately prior to amendment by sec. 601(a) of the Housing Act of 1964 that part of the first sentence from the beginning down to the end of clause (1) read as follows:

"The Housing and Home Finance Administrator is authorized (1) to purchase the securities and obligations of, or make loans to, municipalities and other political sublivisions and instrumentalities of States (including public agencies and instrumentalities of one or more municipalities or other political subdivisions in the same State), and Indian tribes to finance specific projects for public works or facilities under State, municipal, or other applicable law, and".

Sec. 2(a) of Public Law 87-808, approved Oct. 15, 1962, 76 Stat. 920, inserted “and Indian tribes".