approval of this Act, authorize the construction of any projects initiated before or after March 1, 1949, in any locality in which such projects have been or may hereafter be rejected by the governing body of the locality or by public vote, unless such projects have been subsequently approved by the same procedure through which such rejection was expressed: Provided further, That no housing unit constructed under the United States Housing Act of 1937, as amended, shall be occupied by a person who is a member of an organization designated as subversive by the Attorney General: Provided further, That the foregoing prohibition shall be enforced by the local housing authority, and that such prohibition shall not impair or affect the powers or obligations of the Public Housing Administration with respect to the making of loans and annual contributions under the United States Housing Act of 1937, as amended.

RESTRICTION IN THE SUPPLEMENTAL APPROPRIATION ACT, 1953 [Public Law 547, 82d Congress, 66 Stat. 637, 644]

*

*

HOUSING AND HOME FINANCE AGENCY

OFFICE OF THE ADMINISTRATOR

DEFENSE HOUSING

For an additional amount for "Defense housing," including not to exceed $1,433,735 for administrative expenses of the Public Housing Administration in connection with construction of housing under such appropriation, $50,000,000, to remain available until expended: Provided, That the funds hereby appropriated shall not be available in excess of the amount now or hereafter authorized to be appropriated to the Housing and Home Finance Agency for defense housing by title III of the Defense Housing and Community Facilities and Services Act of 1951: Provided further, That no part of the foregoing appropriation shall be used for the construction of any project unless funds are available for the completion of such project. No part of this appropriation may be used for administrative expenses or to pay salaries to any employee within the Public Housing Administration or for any other purpose so long as that agency proceeds with any public-housing project after such project has been rejected or previous approval thereof canceled by the governing body of the locality by resolution or otherwise or by public vote and the governing body has tendered the United States full reimbursement of Federal funds advanced on such project prior to such cancellation and a release from all obligations incurred under such project.

*

Approved July 15, 1952.

1 This sentence constitutes the so-called "McDonough Amendment."

RESTRICTIONS IN THE FIRST INDEPENDENT OFFICES
APPROPRIATION ACT, 1954

[Public Law 176, 83d Congress, 67 Stat. 298, 306]

HOUSING AND HOME FINANCE AGENCY

PUBLIC HOUSING ADMINISTRATION

Annual contributions: For the payment of annual contributions to public housing agencies in accordance with section 10 of the United States Housing Act of 1937, as amended (42 U.S.C. 1410), $32,500,000: Provided, That except for payments required on contracts entered into prior to April 18, 1940, no part of this appropriation shall be available for payment to any public housing agency for expenditure in connection with any low-rent housing project, unless the public housing agency shall have adopted regulations prohibiting as a tenant of any such project by rental or occupancy any person other than a citizen of the United States, but such prohibition shall not be applicable in the case of a family of any serviceman or the family of any veteran who has been discharged (other than dishonorably) from, or the family of any serviceman who died in, the Armed Forces of the United States within four years prior to the date of application for admission to such housing: Provided further, That all expenditures of this appropriation shall be subject to audit and final settlement by the Comptroller General of the United States under the provisions of the Budget and Accounting Act of 1921, as amended: Provided further,1 That unless the governing body of the locality agrees to its completion, no housing shall be authorized by the Public Housing Administration, or, if under construction continue to be constructed, in any community where the people of that community, by their duly elected representatives, or by referendum, have indicated they do not want it, and such community shall negotiate with the Federal Government for the completion of such housing, or its abandonment, in whole or in part, and shall agree to repay to the Government the moneys expended prior to the vote or other formal action whereby the community rejected such housing project for any such projects not to be completed plus such amount as may be required to pay all costs and liquidate all obligations lawfully incurred by the local housing authority prior to such rejection in connection with any project not to be completed: Provided further,1 That, in any case where the Public Housing Administration (after the approvals on the part of the governing body of the locality required by law) has entered into

1 The so-called "Los Angeles Amendment" or "Phillips Amendment.”

a financial assistance contract with a local housing authority covering any low-rent housing projects to be constructed in such locality and, (a) thereafter but prior to the effective date of this Act, a majority of the members of the governing body of the locality, and the people of the locality have voted against any such low-rent housing projects, and (b) the local housing authority and the governing body of the locality agree to a modification of the agreement providing the required local cooperation in connection with such low-rent housing projects, the preceding proviso shall not be applicable and: (1) the Public Housing Administration shall not, unless the governing body of the locality shall, by resolution, request such action, (a) authorize the award of any contract for the construction of any such low-rent housing project, or (b) make any further advance of funds on account of any such project for which the main construction contract has not heretofore been awarded, excepting only such funds as may be required by the local housing authority (i) to pay all costs and liquidate all obligations heretofore properly incurred by it in connection with any such project which pursuant to such modification is to be terminated and (ii) to pay costs in connection with the liquidation (including the sale of land or other assets) of any such terminated project; (2) in the liquidation of any such terminated project no claim shall be made by the local housing authority or the Public Housing Administration against the locality or its governing body on account of such termination; (3) the Public Housing Administration shall absorb as a loss, and shall release the local housing authority from, all claims, if any, of said Administration in connection with such terminated project in excess of the net amount realized from the sale by the local housing authority of all land (which if sold to other than a public agency shall be after public advertisement to the highest responsible bidder but if sold to a public agency may be at a price equal to the purchase price of the land, exclusive of improvements, as approved by the Public Housing Commissioner) and other assets acquired and held in connection with such terminated project; and (4) the Secretary of the Treasury shall credit as a payment upon the note or notes of the Public Housing Administration executed and delivered in connection with funds obtained pursuant to section 20 of the United States Housing Act of 1937, as amended, an amount equal to such loss as certified by the Public Housing Commissioner: Provided further, That the record of expenditure of the Public Housing Administration and of the local housing authority on any public housing project shall be open to examination by the responsible authorities of any community in which such project is located, or by the local public housing authority, or by any firm of public accountants retained by either of the foregoing: Provided further,1 That no housing unit constructed under the United States Housing Act of 1937, as amended, shall be occupied by a person who is a member of an organization designated

1 The so-called "Gwinn amendment." The Attorney General of the United States on April 26, 1956, held that the "Gwinn amendment” had expired.

74-196-67-15

as subversive by the Attorney General: Provided further, That the foregoing prohibition shall be enforced by the local housing authority, and that such prohibition shall not impair or affect the powers or obligations of the Public Housing Administration with respect to the making of loans and annual contributions under the United States Housing Act of 1937, as amended.1

1 Sec. 505(b), Housing Act of 1959, Public Law 86-372, approved September 23, 1959, 73 Stat. 654, 681, repealed a final proviso which read as follows:

": Provided further, That notwithstanding the provisions of the United States Housing Act of 1937, as amended, the Public Housing Administration shall not, with respect to projects initiated after March 1, 1949, (1) authorize during the fiscal year 1954 the commencement of construction of in excess of twenty thousand dwelling units or (2) after the date of approval of this Act, enter into any new agreements, contracts, or other arrangements, preliminary or otherwise, which will ultimately bind the Public Housing Administration during fiscal year 1954 or for any future years with respect to loans or annual contributions for any additional dwelling units or projects unless hereafter authorized by the Congress to do so, and during the fiscal year 1954 the Housing and Home Finance Administrator shall make a complete analysis and study of the low-rent public housing program and, on or before February 1, 1954, shall transmit to the Appropriations Committees of the House and Senate his recommendations with respect to such low-rent public housing program.

RENT SUPPLEMENTS

EXCERPTS, HOUSING AND URBAN DEVELOPMENT ACT OF 1965

[Public Law 89-117, 79 Stat. 451, 12 U.S.C. 1701s]

TITLE I-SPECIAL PROVISIONS FOR DISADVANTAGED PERSONS

FINANCIAL ASSISTANCE TO ENABLE CERTAIN PRIVATE HOUSING TO BE AVAILABLE FOR LOWER INCOME FAMILIES WHO ARE ELDERLY, HANDICAPPED, DISPLACED, VICTIMS OF A NATURAL DISASTER, OR OCCUPANTS OF SUBSTANDARD HOUSING

SEC. 101. (a) The Housing and Home Finance Administrator (hereinafter referred to as the "Administrator") is authorized to make, and contract to make, annual payments to a "housing owner" on behalf of "qualified tenants", as those terms are defined herein, in such amounts and under such circumstances as are prescribed in or pursuant to this section. In no case shall a contract provide for such payments with respect to any housing for a period exceeding forty years. The aggregate amount of the contracts to make such payments shall not exceed amounts approved in appropriation Acts1 and payments pursuant to such contracts shall not exceed $30,000,000 per annum prior to July 1, 1966, which maximum dollar amount shall be increased by $35,000,000 on July 1, 1966, by $40,000,000 on July 1, 1967, and by $45,000,000 on July 1, 1968.

(b) As used in this section, the term "housing owner” means a private nonprofit corporation or other private nonprofit legal entity, a limited dividend corporation or other limited dividend legal entity, or a cooperative housing corporation, which is a mortgagor under section 221 (d) (3) of the National Housing Act and which, after the enactment of this section, has been approved for mortgage insurance thereunder and has been approved for receiving the benefits of this section: Provided, That, except as provided in subsection (j), no payments under this section may be made with respect to any property

1 The Supplemental Appropriation Act, 1966, Public Law 89-309, approved Oct. 31, 1965, 79 Stat. 1133, 1135, provided no funds for rent supplement payments or authorization for rent supplement contracts, but appropriated $450,000 to FHA and $300,000 to the Housing Administrator to prepare plans for implementing the rent supplement program and for making studies and market surveys in connection with the program.

The Second Supplemental Appropriation Act, 1966, Public Law 89-426, approved May 13, 1966, 80 Stat. 141, 143, appropriated $100,000 for rent supplement payments and authorized contracts for rent supplement payments aggregating up to $12,000,000 per year. The Act provided further that no part of the appropriation or contract authority could be used for incurring any obligation in connection with any dwelling unit or project which is not either part of a workable program for community improvement, or which is without local official approval for participation in the rent supplement program.

The Independent Offices Appropriation Act, 1967, Public Law 89-555, approved September 6, 1966, 80 Stat. 663, appropriated $2,000,000 for rent supplement payments and increased by $20,000,000 the limit on the amount of annual rent supplement payments that can be contracted for. This Act also contained the same requirements with respect to the workable program or local official approval as was contained in the Second Supplemental Appropriation Act, 1966, supra.