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This section follows title III, section 303 (b), Public Law 253, Eightieth Congress—the National Security Act of 1947-except that this section of the bill provides a complete exception from title 18, United States Code, section 284, whereas the National Security Act provision grants exception from such provision unless the act of such individual is made unlawful when performed by such individual, with respect to any particular matter which directly involves the department or agency which such person is advising or in which such department or agency is directly interested. The provisions of this section of the bill necessarily must be broader so 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.
SECTION 502. AMENDMENTS OF NATIONAL BANKING ACT
By reason of the provisions of the new section 22 of the United States Housing Act of 1937, as amended (which new section is added by sec. 204 (b) of the bill), special security features would attach to definitive bonds issued by local public-housing agencies in connection with the low-rent public-housing program. Special security features would also attach to short-term notes issued by local public agencies in connection with slum-clearance projects, and by public-housing agencies in connection with low-rent housing projects, when secured by a pledge of rights of any such agency under its loan contract with the Government.
In recognition of these security features, section 502 (a) provides for an amendment of the National Banking Act so that national banks, and (to the extent permitted by State laws) State member banks of the Federal Reserve System, would be authorized to purchase larger amounts, and, to underwrite, local public-housing agency definitive bonds and, when adequately secured, short-term notes (which obligations shall have a maturity of not more than 18 months) issued by local public agencies in connection with slum-clearance projects or by public housing agencies in connection with low-rent public-housing projects. Without this amendment, investment in such obligations by these banks would continue to be subject to the same restrictions as are applicable to local public-housing agency definitive bonds, which are now issued without these special security features. In other words, they could be purchased for the banks' own account only to the extent of 10 percent of unimpaired capital and surplus.
Section 502 (b) is a technical amendment which should be made in conjunction with the amendment of the National Banking Act provided for in section 502 (a). The amendment to paragraph seventh of section 5136 of the Revised Statutes, made by subsection 502 (a), relates to short-term obligations only when they are classified as "investment securities." However, 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. Therefore, it is necessary to also amend section 5200 of the Revised Statutes which prescribes the same limitations for the purchase of loans as are prescribed by section 5136 for the purchase of investment securities.
SECTION 503. NATIONAL HOUSING COUNCIL
This section provides that the Secretary of Labor or his designee, and the Federal Security Administrator or his designee, shall be included in the membership of the National Housing Council in the Housing and Home Finance Agency.
SECTION 504. AMENDMENTS OF. THE GOVERNMENT CORPORATIONS
APPROPRIATION ACT, 1948, AND THE GOVERNMENT CORPORATIONS APPROPRIATION ACT, 1949
The Government Corporations Appropriation Acts for 1948 and for 1949 included provisos to the effect that no payments of annual contributions should be made which were occasioned by payments in lieu of taxes in excess of amounts originally contracted for. This restriction had the effect of prohibiting payments in lieu of taxes equal to 10 percent of shelter rents, as had been previously authorized by PHA, and as will be authorized in the future under subsection 205 (b) of this bill. These provisos of the two appropriation acts are therefore repealed as of the beginning of the fiscal years for which they apply, thus validating 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) authorized for these 2 years in subsection 205 (b).
The Government Corporations Appropriation Act for 1949 also limits the number of employees of the Public Housing Administration above grades CAF-10 and P-3 to not exceeding 20 percent of the total number of administrative employees. Under the expanded program of low-rent public housing a relatively greater number of trained technical employees will be required than were necessary under the former operations of the agency when low-rent public housing represented only a small portion of its total responsibilities. This section also repeals this 20-percent limitation in order to permit the recruitment of the trained personnel which will be necessary to put the new program into operation.
SECTION 505. DEPUTY HOUSING AND HOME-FINANCE ADMINISTRATOR
This section provides for the 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 in that office, and who shall perform such other duties as the Administrator shall direct.
SECTION 506. CONVERSION OF STATE LOW-RENT OR VETERANS' HOUSING
This section permits State-aided low-rent housing or veterans' housing to be converted, under specified conditions, to low-rent housing assisted under the United States Housing Act of 1937. The conditions to such conversion are (a) a contract for State financial assistance for such project was entered into on or after January 1, 1948, and prior to January 1, 1950, (6) the project is or can become eligible for assistance by the Public Housing Administration in the form of loans and annual contributions under the provisions of the United States Housing Act of 1937, as amended, and (c) the public-housing agency operating the project in the State makes application to the Public Housing Administration for Federal assistance for the project under the terms of the United States Housing Act of 1937, as amended. Its inclusion in this bill makes necessary the repcal of a similar provision contained in section 503 of the Housing Act of 1948 which applied only to projects where a State contract was made prior to January 1, 1949.
SECTION 507. CENSUS OF HOUSING This section provides a permanent authorization for the Director of the Census, in the year 1950 and decennially thereafter, to take a housing census (similar to that first taken in 1940, which included information about the number, characteristics, quality, values, rentals, geographic distribution, etc.) in conjunction with and as a part of the population inquiry of the decennial census.
SECTION 508. NATIONAL CAPITAL HOUSING AUTHORITY
This section would restore to the National Capital Housing Authority the power to acquire sites for low-rent public housing projects assisted under the United States Housing Act of 1937, as amended, including the amendments contained in title II of the bill. Without this amendment, the District of Columbia would not be able to obtain the benefits provided by title II of the bill.
SECTION 509. DISTRICT OF COLUMBIA PARTICIPATION
This section makes available to the District of Columbia the benefits provided under titles I and II of the bill. It authorizes the participation of the District of Columbia Redevelopment Land Agency, the National Capital Housing Authority, and other appropriate agencies operating in the District of Columbia to receive the benefits of titles I and II of H. R. 4009 on the same basis and to the same extent that the States, Territories, and other municipalities would be authorized to participate. Under the provisions of this section of the bill, the District of Columbia Redevelopment Act of 1945 is continued in full force and effect. However, it provides an alternative method of financing slum clearance and redevelopment operations in the District of Columbia Redevelopment Land Agency by vesting in that Agency (subject to the approval of the Commissioners of the District of Columbia) the power to accept financial assistance which would be authorized under title I of H. R. 4009.
The section authorizes the allowance of credits for local grants-in-aid in connection with projects undertaken within the District of Columbia, under title I of H. R. 4009, to the same extent as local grants-inaid are approvable for other cities and States. It also provides that, in the event such local grants-in-aid are not sufficient to meet the local grants-in-aid requirements, the Housing and Home Finance Administrator may rely upon agreements entered into between the District Commissioners and the District of Columbia Redevelopment Land Agency to make cash payments of such deficiencies from the funds of the District of Columbia and to authorize appropriations to the District Commissioners for such purpose, where necessary.
With respect to any project undertaken with financial assistance under title I of H. R. 4009, it also makes sections 3 (f), 3 (k), and 7 (g), and the last sentence of section 6 (b) (2) of the District of Columbia Redevelopment Act of 1945 inapplicable to any real property which, in accordance with the redevelopment plan adopted by the Planning Commission and approved by the District Commissioners, is to be devoted to public housing undertaken under Public Law 307, Seventythird Congress, approved June 12, 1934 (the District of Columbia Alley Dwelling Act, as amended). The National Capital Housing Authority would be entitled to acquire by deed those pieces of real property within a redevelopment project area which, in accordance with the approved project area redevelopment plan, are to be devoted to public housing to be undertaken under Public Law 307, Seventythird Congress, approved June 12, 1934. as amended, and in accordance with the requirements of section 107 of H. R. 4009 the National Capital Housing Authority would be obligated to pay for such real estate out of funds made available for such acquisition.
SECTION 510. ACT CONTROLLING
This section contains the standard provision providing that the provisions of this act shall control in the case of inconsistency with other legislation.
SECTION 511. SEPARABILITY This is the usual separability clause.
XII. CHANGES IN EXISTING LAW In compliance with paragraph 2a of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as introduced, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italics, existing law in which no change is proposed is shown in roman):
UNITED STATES HOUSING ACT OF 1937, AS AMENDED
DECLARATION OF POLICY
Section 1. It is hereby declared to be the policy of the United States to promote the general welfare of the Nation by employing its funds and credit, as provided in this Act, to assist the several States and their political subdivisions to alleviate present and recurring unemployment and to remedy the unsafe and insanitary housing conditions and the acute shortage of decent, safe, and sanitary dwellings for families of low income, in [rural or urban communities] urban and rural nonfarm areas, that are injurious to the health, safety, and morals of the citizens of the Nation.
SEC. 2. When used in this Act-(1) The term “low-rent housing” means decent, safe, and sanitary dwellings within the financial reach of families of low income, and developed and administered to promote serviceability, efficiency, economy, and stability, and embraces all necessary appurtenances thereto. [The dwellings in low-rent housing as de fined in this Act shall be available solely for families whose net income at the time of admission does not exceed five times the rental (including the value or cost to them of heat, light, water, and cooking fuel) of the dwellings to be furnished such families, except that in the case of families with three or more minor dependents, such ratio shall not exceed six to one.) The dwellings in low-rent housing as de fined in this Act shall be available solely for families whose net annual income at the time of admission, less an exemption of $100 for each minor member of the family, other than the head of the family and his spouse, does not exceed five times the annual rental (including the value or cost to them of water, electricity, gas, other heating and cooking fuels, and other utilities) of the dwellings to be furnished such families. For the sole purpose of determining eligibility for continued occupancy, a public housing agency may allow, from the net income of any family, an exemption for each minor member of the family (other than the head of the family and his spouse) of either (a) $100, or (b) all or any part of the annual income of such minor. For the purposes of this subsection, a minor shall mean a person less than 21 years of age.
(2) The term "families of low income" means families who are in the lowestincome group and who cannot afford to pay enough to cause private enterprise in their locality or metropolitan area to build an adequate supply of decent, safe, and sanitary dwellings for their use.
(3) The term "slum” means any area where dwellings predominate which, by reason of dilapidation, overcrowding, faulty arrangement or design, lack of ventilation, light, or sanitation facilities, or any combination of these factors, are detrimental to safety, health, or morals.
(4) The term "slum clearance” means the demolition and removal of buildings from any slum area.
(5) The term "development” means any or all undertakings necessary for planning, [financing (including payment of carrying charges),] land acquisition, demolition, construction, or equipment, in connection with a low-rent housing [or slum-clearance] project[, but not beyond the point of physical completion.] The term "development cost” shall comprise the costs incurred by a public housing agency in such undertakings and their necessary financing (including the payment of carrying charges, but not beyond the point of physical completion), and in otherwise carrying out the development of such project. Construction activity in connection with a low-rent-housing project may be confined to the reconstruction, remodeling, or repair of existing buildings.
(6) The term "administration” means any or all undertakings necessary for management, operation, maintenance, or financing, in connection with a lowrent-housing or slum-clearance project, subsequent to physical completion.
(7) The term "Federal project" means any project owned or administered by the Authority.
(8) The term "acquisition cost” means the amount prudently required to be expended by a public-housing agency in acquiring a low-rent-housing or slumclearance project.
(9) The term "nondwelling facilities” shall include site developments, improvements, and facilities located outside building walls (including streets, sidewalks, and sanitary, utility, and other facilities).
(10) The term "going Federal rate (of interest]” means [at any time] the annual rate of interest (or, if there shall be two or more such rates of interest, the highest thereof) specified in the [then] most recently issued bonds of the Federal Government having a maturity of ten years or more, determined, in the case of loans or annual contributions, respectively, at the date of Presidential approval of the contract pursuant to which such loans or contributions are made: Provided, That for the purposes of this Act, the going Federal rate shall be deemed to be not less than 274 per centum.
(11) The term "public housing agency" means any State, county, municipality, or other governmental entity or public body (excluding the Authority), which is authorized to engage in the development or administration of low-rent housing or slum clearance. The Authority shall enter into contracts for financial assisiance with a State or State agency where such State or State agency makes application for such assistance for an eligible project which, under the applicable laws of the State, is to be developed and administered by such State or State agency.
(12) The term “State" includes the States of the Union, the District of Columbia, and the Territories, dependencies, and possessions of the United States.
(13) The term “Authority”, means the United States Housing Authority created by section 3 of this Act.
(14) The term "reteran” shall mean a person who has served in the active military or naval service of the United States at any time on or asler September 16, 1940, and prior to July 26, 1947, and who shall have been discharged or released therefrom under conditions other than dishonorable. The term “serviceman" shall mean a person in the active military or naval service of the United States who has served iherein on or after September 16, 1940, and prior to July 26, 1947.