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vided,1 That notwithstanding the fair rental value of such quarters, or of any other housing facilities under the jurisdiction of a department or agency of the United States, no rental charge for occupancy of family units designated as other than public quarters shall be made against the basic allowance for quarters of a member of a uniformed service in excess of 75 per centum of such allowance, except that in no event shall the net rental value charged to the member's basic allowance for quarters be less than the costs of maintaining and operating the housing.

(b) The provisions of this section shall be administered under regulations approved by the President.

(c) The Secretaries of the Army, Navy, and Air Force for the respective military departments, the Secretary of the Treasury for the Coast Guard when the Coast Guard is operating as a service in the Treasury Department, the Secretary of Commerce for the Coast and Geodetic Survey, and the Secretary of Health, Education, and Welfare for the Public Health Service (hereafter referred to as the "Secretaries"), are each authorized, subject to standards established pursuant to subsection (b) of this section, to designate as rental housing such housing as he may determine to be inadequate as public quarters.

(d) The Secretaries are each further authorized, subject to standards established pursuant to subsection (b) of this section, to lease inadequate housing to personnel of any of the mentioned services for occupancy by them and their dependents. The housing facilities leased, as herein provided, shall not be required to have been constructed with funds derived from appropriations specifically made for the purpose of the construction of rental housing for personnel of the services mentioned.

(e) All housing units determined pursuant to subsection (c) of this section to be inadequate shall, prior to July 1, 1962,2 either be altered or improved so as to qualify as public quarters, or be demolished or otherwise disposed of.

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(f) This section shall have no application to any housing described in clause (1) or (2) of section 404 (a) of the Housing Amendments of 1955, as amended.

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(g) The Secretaries of Defense and Health, Education, and Welfare, in order to insure as far as possible that family housing under their jurisdiction is adequate as public quarters and fully utilized, shall maintain such continual surveillance and conduct such periodic surveys of such quarters as they shall deem necessary for this purpose. Where either Secretary or his designee determines, on the basis of such surveys, that it is not in the best interest of the United States to improve,

1 Sec. 502. Military Construction Authorization Act, 1967, Public Law 89-568, approved September 12, 1966, 80 Stat. 739, 753, added this proviso.

Sec. 610 of the Military Construction Act of 1961, Public Law 87-57, approved June 27, 1961, 75 Stat. 96, 111, substituted "July 1, 1962" for "July 1, 1961".

Immediately prior to amendment by sec. 702(c), Housing Act of 1959, Public Law 86372, approved September 23, 1959, 73 Stat. 654, 683, this subsection read as follows: "(f) This section shall have no application to any housing financed with mortgages insured under the provisions of title VIII of the National Housing Act as in effect prior to the enactment of the Housing Amendments of 1955. Pub. Law 85-241, title IV, § 407, Aug. 30, 1957, 71 Stat. 556".

Sec. 508 of the Military Construction Act of 1960, Public Law 86-500, approved June 8, 1960, 74 Stat. 166, 186, added subsection (g), and sec. 610 of the Military Construction Act of 1961, Public Law 87-57, approved June 27, 1961, 75 Stat. 96, 111, amended subsection (g) by substituting "July 1, 1965" for "July 1, 1962.".

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demolish, or otherwise dispose of any quarters which have been determined inadequate under this section, he may exempt such quarters from the requirements of subsection (e) of this section: Provided, That any quarters so exempted must be improved, demolished, or otherwise disposed of not later than July 1, 1965; And1 provided further, That the Secretary of Defense, or his designee, may exempt from this requirement any housing at any particular installation as to which he determines that (1) the housing is safe, decent, and sanitary, so as to be suitable for occupancy; (2) the housing cannot be made adequate as public quarters with a reasonable expenditure of funds; (3) the rentals charged to, or the allowances forfeited by, the occupants are not less than the costs of maintaining and operating the housing; and (4) here is a continuing need which cannot appropriately be met by privately owned housing in the area. (Public Law 85-241, title IV, 407, Aug. 30, 1957, 71 Stat. 556; Public Law 85-685, title V, § 516, Aug. 20, 1958, 72 Stat. 664; Public Law 86-372, title VI, § 702(c), Sept. 23, 1959, 73 Stat. 683; Public Law 86-500, title V, § 508, June 8, 1960, 74 Stat. 186; Public Law 87-57, title VI, § 610, June 27, 1961, 75 Stat. 111; Public Law 88-174, title V, § 506, Nov. 7, 1963, 77 Stat. 326.)

1 The proviso added by sec. 506, Military Construction Authorization Act, 1964, Public Law 88-174, approved November 7, 1963, 77 Stat. 307, 326.

LOW-INCOME HOUSING DEMONSTRATIONS

EXCERPT FROM HOUSING ACT OF 1961

[Public Law 87-70, 75 Stat. 149, 165; 42 U.S.C. 1436]

DEMONSTRATION PROGRAMS

SEC. 207. The Housing and Home Finance Administrator is authorized to enter into contracts to make grants, not exceeding $15,000,000,1 to public or private bodies or agencies, subject to such terms and conditions as he shall prescribe, for the purposes of developing and demonstrating new or improved means of providing housing for low income persons and families, and 2 of demonstrating the types of housing and the means of providing housing that will assist low income persons or families who qualify as handicapped families as defined in section 202 of the Housing Act of 1959. Advances and progress payments may be made, under any contract to make grants under this section, without regard to the provisions of section 3648 of the Revised Statutes.

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Approved June 30, 1961.

1 Sec. 407, Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 796, substituted "$10,000,000" for "$5,000,000", and sec. 1105, Housing and Urban Development Act of 1965. Public Law 89-117, approved August 10, 1965, 79 Stat. 451, 503, substituted "$15,000,000" for "$10,000,000".

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

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See also:

Grants:

REHABILITATION ASSISTANCE

Title I, Housing Act of 1949, urban renewal law_.

See section 115, Housing Act of 1949, which authorizes grants to low-income homeowners in urban renewal areas and areas of concentrated code enforcement.

Title V, Housing Act of 1949, rural housing_-

Insured loans:

National Housing Act--

Title I, Property improvement loans--
Section 203 (k), Home improvement loans--.

Page No.

286

232

3

3

17

53

Section 220 (h), Home improvement loans in urban renewal areas
and code enforcement areas..

Rehabilitation can be financed along with purchase or
financing of housing under most FHA mortgage insurance
programs.

Title I, Property improvement loans--.

Title V, Housing Act of 1949, rural housing--

EXCERPTS FROM HOUSING ACT OF 1964

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[Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 790; 42 U.S.C. 1452b] TITLE III-URBAN RENEWAL

REHABILITATION LOANS

SEC. 312. (a) To assist rehabilitation in an urban renewal area or an area in which a program of concentrated1 code enforcement activities is being carried out pursuant to section 117 of the Housing Act of 1949 and thereby reduce the need for demolition and removal of structures, the Housing and Home Finance Administrator is hereby authorized, through the utilization of local public and private agencies where feasible, to make loans as herein provided to the owners or tenants of property in such area to finance rehabilitation required to make the property conform to applicable code requirements or to carry out the objectives of the urban renewal plan for the area. No loan shall be made under this section unless the Administrator finds (1) that the applicant is unable to secure the necessary funds from other sources upon comparable 2 terms and conditions, and (2) the loan is an acceptable risk taking into consideration the need for the rehabilitation, the security available for the loan, and the ability of the applicant to repay the loan.

(b) For the purposes of this section

(1) the term "rehabilitation" means the improvement or repair of a structure or facilities in connection with a structure, and

1 Sec. 311(e), Housing and Urban Development Act of 1965, approved August 10, 1965, 79 Stat. 451, 479, inserted the language authorizing loans in areas of concentrated code enforcement activities.

2 Sec. 312(a), Housing and Urban Development Act of 1965, approved August 10, 1965, 79 Stat. 451, 479, substituted "comparable" for "reasonable".

may include the provision of such sanitary or other facilities as are required by applicable codes or the urban renewal plan to be provided by the owner or tenant of the property;

(2) the term "urban renewal area" means a slum area or a blighted, deteriorated, or deteriorating area as defined in section 110(a) of the Housing Act of 1949 ;

(3) the term "tenant" means a person or organization who is occupying a structure under a lease having a period to run at the time a rehabilitation loan is made under this section of not less than the term of the loan; and

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

(c) A rehabilitation loan made under this section shall be subject to the following limitations:

(1) The loan shall be subject to such terms and conditions as may be prescribed by the Administrator.

(2) The term of the loan may not exceed twenty years or threefourths of the remaining economic life of the structure after rehabilitation, whichever is less.

(3) The loan shall bear interest at such rate as the Administrator determines to be appropriate but not to exceed 3 per centum per annum of the amount of the principal outstanding at any time, and the Administrator may prescribe such other charges as he finds necessary, including service charges and appraisal, inspection, and other fees. (4) The amount of the loan may not exceed

(A) in the case of residential property, the amount of a loan which could be insured by the Federal Housing Commissioner under section 220 (h) of the National Housing Act: Provided, That, within the limitations otherwise applicable on the amount of a loan under such section, the loan may exceed the cost of rehabilitation in order to include an amount approved by the Administrator to refinance existing indebtedness secured by such property if such refinancing is necessary to enable the applicant to amortize, with a monthly payment of not more than 20 per centum of his average monthly income, such loan and any other indebtedness secured by his property; and

(B) in the case of nonresidential property, whichever of the following is the least: $50,000, or the cost of rehabilitation, or an amount which when added to any outstanding indebtedness related to the property securing the loan creates a total outstanding indebtedness that the Administrator determines could be reasonably secured by a first mortgage on the property.

(5) A loan shall be secured as determined by the Administrator. (d) There is authorized to be appropriated not to exceed $100,000,0001 for each fiscal year which shall constitute a revolving fund to be used by the Administrator in carrying out this section. All moneys in such revolving fund shall be available for necessary expenses of servicing loans made pursuant to this section, including reimbursement or payment for services and facilities of the Federal

1 Sec. 312(b). Housing and Urban Development Act of 1965, Public Law 89-117, approved August 10, 1965, 79 Stat. 451, 479. substituted "$100,000.000 for each fiscal year" for "$50,000,000", and added the last sentence of this subsection (d).

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