(3) The Administrator shall take such action as may be necessary to insure that all laborers and mechanics employed by contractors and subcontractors in the construction of housing assisted under this section shall be paid wages at rates not less than those prevailing in the locality involved for the corresponding classes of laborers and mechanics employed on construction of a similar character, as determined by the Secretary of Labor in accordance with the Act of March 3, 1931, as amended (the Davis-Bacon Act); but the Administrator may waive the application of this paragraph in cases or classes of cases where laborers or mechanics, not otherwise employed at any time in the construction of such housing, voluntarily donate their services without full compensation for the purpose of lowering the costs of construction and the Administrator determines that any amounts saved thereby are fully credited to the corporation, cooperative,1 or public body or agency undertaking the construction.

(d) As used in this section

(1) The term "housing" means 2 structures suitable for dwelling use by elderly or handicapped families which are (A) new structures, or (B) provided by rehabilitation, alteration, conversion, or improvement of existing structures which are otherwise inadequate for proposed dwelling use by such families.

(2) The term "corporation" means any incorporated private institution or foundation no part of the net earnings of which inures to the benefit of any private shareholder, contributor, or individual, if such institution or foundation is approved by the Administrator as to financial responsibility.

(3) The term " development cost" means costs of construction of housing and of other related facilities, and of the land on which it is located, including necessary site improvement.

(4) The term "elderly or handicapped families" means 3 families which consist of two or more persons and the head of which (or his spouse) is sixty-two years of age or over or is handicapped, and such term also means a single person who is sixty-two years of age or over or is handicapped. A person shall be considered handicapped if such person is determined, pursuant to regulations issued by the Administrator, to have a physical impairment which (A) is expected to be of long-continued and indefinite duration, (B) substantially impedes his ability to live independently, and (C) is of such a nature that such ability could be improved by more suitable housing conditions. The Administrator shall prescribe such regulations as may be necessary to prevent abuses in determining, under the definitions contained in this paragraph, the eligibility of families and persons for admission to and occupancy of housing constructed with assistance under this section. (5) The term "State" includes the several States, the District

1 Sec. 201 (a) (4), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 163, added "cooperative, or public body or agency".

2 Immediately prior to amendment by sec. 203, Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 783, 784, this paragraph read as follows:

"(1) The term 'housing' means new structures suitable for dwelling use by elderly families and new structures suitable for such use by one or more elderly persons."

3 Immediately prior to amendment by sec. 203, Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 784, the first sentence of this paragraph read as follows:

"The term 'elderly families' means families the head of which (or his spouse) is sixty-two years of age or over; and the term 'elderly persons' means persons who are sixty-two years of age or over."

of Columbia, the Commonwealth of Puerto Rico, and the possessions of the United States.

(6) The term "Administrator" means the Housing and Home Finance Administrator.

1

(7) The term "construction" means erection of new structures or i rehabilitation, alteration, conversion, or improvement of existing structures.

(8) The term "related facilities" means 2 (A) new structures suitable for use by elderly or handicapped families as cafeterias or dining halls, community rooms or buildings, workshops, or infirmaries or other inpatient or outpatient health facilities, or other essential service facilities, and (B) structures suitable for the above uses provided by rehabilitation, alteration, conversion, or improvement of existing structures which are otherwise inadequate for such uses.

(e) Nothing in this section or in regulations promulgated under this section shall prevent a corporation or consumer cooperative from obtaining a loan under this section for the provision of housing and related facilities for elderly or handicapped families, notwithstanding the fact that such corporation or cooperative has theretofore obtained a commitment from the Federal Housing Administration for mortgage insurance under section 231 of the National Housing Act with respect to the housing involved, if (1) such corporation or cooperative is otherwise eligible for such loan under this section, (2) such commitment was obtained prior to the date of enactment of the Housing Act of 1961,* and (3) the Administrator determines that the financing of such housing through a loan under this section rather than through mortgage insurance under such section 231 is necessary or desirable in order to avoid hardship for the elderly or handicapped families who are the prospective tenants of such housing.

*

Approved September 23, 1959.

1 Sec. 203, Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 784, added the remainder of this paragraph.

2 Immediately prior to amendment by sec. 203, Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 784, this paragraph read as follows:

"(8) The term 'related facilities' means new structures suitable for use as cafeterias or dining halls, community rooms or buildings, or infirmaries or other inpatient or outpatient health facilities, or for other essential service facilities."

3 Added by sec. 201 (d), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 163, and amended by sec. 203, Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 783, to include handicapped persons and families. June 30, 1961.

LOANS FOR HOUSING FOR THE ELDERLY-NEED FOR

EXCERPT FROM SENIOR CITIZENS HOUSING ACT OF 1962

[Public Law 87–723, 76 Stat. 670, 12 U.S.C. 1701r]

SEC. 2. The Congress finds that there is a large and growing need for suitable housing for older people both in urban and rural areas. Our older citizens face special problems in meeting their housing needs because of the prevalence of modest and limited incomes among the elderly, their difficulty in obtaining liberal long-term home mortgage credit, and their need for housing planned and designed to include features necessary to the safety and convenience of the occupants in a suitable neighborhood environment. The Congress further finds that the present programs for housing the elderly under the Housing and Home Finance Agency have proven the value of Federal credit assistance in this field and at the same time demonstrated the urgent need for an expanded and more comprehensive effort to meet our responsibilities to our senior citizens.

*

Approved September 28, 1962.

223

LOANS FOR COLLEGE HOUSING

EXCERPTS FROM THE HOUSING ACT OF 1950

[Public Law 475, 81st Congress, 64 Stat. 48, 77, 12 U.S.C. 1749]

TITLE IV-HOUSING FOR EDUCATIONAL INSTITUTIONS FEDERAL LOANS 1

SEC. 401.2 (a) To assist educational institutions in providing housing and other educational facilities for students and faculties, the Administrator may make loans of funds to such institutions for the construction of such facilities: Provided, That (1) no such loan shall be

1 The President's letter of July 18, 1950, to the Housing and Home Finance Administrator, requested that the Administrator "Suspend for the time being commitments for direct loans for the construction of housing by educational institutions", as one of several administrative actions requested in order to conserve building materials for national defense purposes and lessen inflationary tendencies. On December 8, 1950, the President released $40,000,000 for defense-related college housing loans. An additional $60,000,000 was made available for fiscal 1953, $50,000,000 for fiscal 1954 and 1955 each, and $25,000,000 for fiscal 1956, making a cumulative total released of $225,000,000. On August 4, 1953, the Housing Administrator announced the removal of defense restrictions on college housing loans and that colleges would no longer be required to show a defense-related need to qualify for a loan.

Sec. 401 amended to read as set forth in the text (except for increases in limit in subsection (d) on Treasury borrowings) by sec. 301 of the Housing Amendments of 1955 (the "College Housing Amendments of 1955"), Public Law 345, 84th Congress, approved August 11, 1955, 69 Stat. 635, 644.

As originally enacted, sec. 401 read as follows:

"SEC. 401. (a) To assist educational institutions in providing housing for their students and faculties the Administrator may make loans of funds to such institutions for the construction of such housing: Provided, That no such loan shall be made unless the educational institution shows that it is unable to secure the necessary funds for such housing from other sources upon terms and conditions generally comparable to the terms and conditions applicable to loans under this title: And provided further, That no such loan shall be made unless the Administrator finds that the housing will be undertaken in such a manner that economy will be promoted in its construction, and that it will not be of elaborate or extravagant design or materials. Any educational institution which, prior to the date of enactment of this Act, has contracted for housing may, in connection therewith, receive loans authorized under this title, as the Administrator may determine: Provided further, That no such loan shall be made for any housing, the construction of which was begun prior to the effective date of this Act. A loan to an educational institution may be in an amount not exceeding the total development cost, as determined by the Administrator of the housing; shall bear interest at the annual rate of interest (or, if there shall be two or more such rates of interest, the highest thereof) specified in the most recently issued bonds of the Federal Government having maturity of ten years or more, determined at the date the contract for the loan is made, plus one-fourth of 1 per centum per annum; and shall be secured in such manner and be repaid within such period, not exceeding forty years, as may be determined by the Administrator.

"(b) To obtain funds for loans under this title, the Administrator may issue and have outstanding at any one time notes and obligations for purchase by the Secretary of the Treasury in an amount not to exceed $300,000,000.

"(c) Notes or other obligations issued by the Administrator under this title shall be in such forms and denominations, have such maturities, and be subject to such terms and conditions as may be prescribed by the Administrator, with the approval of the Secretary of the Treasury. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average rate on outstanding marketable obligations of the United States as of the last day of the month preceding the issuance of such notes or other obligations. The Secretary of the Treasury is authorized and directed to purchase any notes and other obligations of the Administrator issued under this title and for such purpose is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which securities may be issued under such Act, as amended, are extended to include any purchases of such notes and other obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this section. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States.

made unless the educational institution shows that it is unable to secure the necessary funds for such construction from other sources upon terms and conditions equally as favorable as the terms and conditions applicable to loans under this title, and (2) no such loan shall be made unless the Administrator finds that the construction will be undertaken in an economical manner, and that it will not be of elaborate or extravagant design or materials.

(b) Any educational institution which, prior to the date of enactment of this Act, has contracted for housing or other educational facilities may, in connection therewith, receive loans authorized under this title, as the Administrator may determine: Provided, That no such loan shall be made for any housing or other educational facilities, the construction of which was begun prior to the effective date of this Act, or completed prior to the filing of an application under this title.

(c) A loan to an educational institution may be in an amount not exceeding the total development cost of the facility, as determined by the Administrator; shall be secured in such manner and be repaid within such period, not exceeding fifty years, as may be determined by him; and with respect to loan contracts under which loan funds have not been fully disbursed prior to the date of enactment of the College Housing Amendments of 1955 shall bear interest at a rate determined by the Administrator which shall be not more than the 1 lower of (1) 3 per centum per annum, or (2) the total of one-quarter of 1 per centum per annum added to the rate of interest paid by the Administrator on funds obtained from the Secretary of the Treasury as provided in subsection (e) of this section.

2

(d) To obtain funds for loans under subsection (a) of this section, the Administrator may issue and have outstanding at any one

"(d) There are hereby authorized to be appropriated to the Administrator such sums as may be necessary, together with loan principal and interest payments made by educational institutions assisted hereunder, for payments on notes or other obligations issued by the Administrator under this section."

Sec. 24 (b) of the Housing Amendments of 1953, Public Law 94, 83d Congress, approved June 30, 1953, 67 Stat. 121, 128, amended the third sentence of sec. 401 to read as follows: "A loan to an educational institution may be in an amount not exceeding the total development cost of the housing, as determined by the Administrator; shall be secured in such manner and be repaid within such period, not exceeding forty years, as may be determined by him; and, with respect to loan contracts entered into after the first minimum annual rate has been specified as provided herein, shall bear interest at a rate determined by the Administrator which shall be not less than the minimum annual rate which the Secretary of the Treasury shall specify as applicable to the six-month period (beginning with the six-month period ending December 31, 1953) during which the contract for the loan is made: Provided, That such minimum annual rate for each six-month period shall be determined by the Secretary of the Treasury by estimating the average yield to maturity, on the basis of daily closing market bid quotations or prices during the month of May or the month of November, as the case may be, next preceding such six-month period, on all outstanding marketable obligations of the United States having a maturity date of fifteen or more years from the first day of such month of May or November, and by adjusting such estimated average annual yield to the nearest one-eighth of one per centum."

The third sentence of sec. 401 was further amended by sec. 808(b) of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 646, by substituting "is approved by the Administrator" for the word "made" immediately preceding the proviso.

1 Sec. 602 (a), Housing and Urban Development Act of 1965, Public Law 89-117, approved August 10, 1965, 79 Stat. 451, 489, substituted "the lower of (1) 3 per centum per annum, or" for "the higher of (1) 24 per centum per annum, or". Sec. 602(a) further provided that this change is effective with respect to loan contracts entered into after the date of the enactment of the Housing and Urban Development Act of 1965 (August 10, 1965).

2 Immediately prior to amendment by sec. 401, Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 172, subsection (d) read as follows:

"(d) To obtain funds for loans under subsection (a) of this section, the Administrator may issue and have outstanding at any one time notes and obligations for purchase by the Secretary of the Treasury in an amount not to exceed $1,675,000,000: Provided, That the amount outstanding for other educational facilities, as defined herein, shall not exceed $175,000,000: Provided further, That the amount outstanding for hospitals, referred to in clause (2) of section 404 (b) of this title, shall not exceed $100,000,000."