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Housing Act of 1949

OBTAINING
FUNDS FOR
LOANS

exceed the aggregate of the estimated expenditures
to be made by local public agencies as part of the
gross project cost of the projects assisted by
such contracts. To obtain funds for advance and
loan disbursements under this title, the Secretary
may issue and have outstanding at any one time notes
and obligations for purchase by the Secretary of
the Treasury in an amount which shall not, unless
authorized by the President, exceed $1,000,000,000.
For the purpose of establishing unpaid obligations
as of a given date against the authorization
contained in the preceding sentence, the Secretary
sball estimate the maximum amount to be required to
be borrowed from the Treasury and outstanding at
any one time with respect to loan commitments
in effect on such date.

(1) Notes or other obligations issued by the
Secretary under this title shall be in such forms
and denominations, bave such maturities, and be
subject to such terms and conditions as may be
prescribed by the Secretary, 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 con-
sideration 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 Secretary
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.

(8) Obligations, including interest thereon, issued by local public agencies for projects assisted pursuant to this title, and income derived by such agencies from such projects, shall be exempt from all taxation now or hereafter imposed by the United States.

TERMS OF SECRETARY'S NOTES

TAX
EXEMPTION

Housing Act of 1949

CAPITAL GRANTS

OPEN LAND

Capital Grants

Sec. 103(a)(1)1 The Secretary may make capital grants to local public agencies in accordance with the provisions of this title for urban renewal projects: Provided, That the Secretary shall not make any contract for capital grant with respectz to a project which consists of open land, except that he may contract for a grant in an amount not to exceed two-thirds of the difference between the proceeds from any land disposed of pursuant to section 107 and the fair value of the land

1Sec. 301 (a), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 165, inserted "(1)".

2Sec. 305, Housing Act of 1954, Public Law 560, 83rd Congress, approved Aug. 2, 1954, 68 Stat. 590, 625, substituted "in accordance with the provisions of this title for urban renewal projects" for "to enable such agencies to make land in project areas available for redevelopment at its fair value for the uses specified in the redevelopment plans".

3this exception was added by sec. 506, Housing and Urban Development Act of 1968, Public Law 90-448, approved August 1, 1968, 82 Stat. 476, 522.

Housing Act of 1949

CAPITAL
GRANTS

without regard to such section.

(2) The aggregate of such capital grants
with respect to all of the projects of a local
public agency (or of two or more local public
agencies in the same municipality) on which
contracts for capital grants have been made under
this title shall not exceed the total of --

(A) two-thirds of the aggregate net
project costs of all such projects to which
neither subparagraph (B) nor subparagraph
(C) applies, and

las originally enacted this part of the subsection read as follows: "The aggregate of such capital grants with respect to all the projects of a local public agency on which contracts for capital grants have been made under this title shall not exceed two-thirds of the aggregate of the net project costs of such projects, and the capital grant with respect to any individual project shall not exceed the difference between the net project cost and the local grants-in-aid actually made with respect to the project.

Sec. 302(1), Housing Act of 1957, Public Law 85-104, approved July 12, 1957, 71 Stat. 294, 299, amended this part of the subsection to read as follows: "The aggregate of such capital grants with respect to all the projects of a local public agency on which contracts for capital grants have been made under this title, exclusive of projects referred to in the proviso hereto, shall not exceed two-thirds of the aggregate of the net project costs of such nonexcluded projects: Provided, That the aggregate of such capital grants may exceed twothirds but not three-fourths of the aggregate net project cost of those projects which the Administrator, at the request of a local public agency, may approve on such a three-fourths capital grant basis. A capital grant with respect to any individual project shall not exceed the difference between the net project cost and the local grants-in-aid actually made with respect to the project.

Sec. 301(a), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 165, amended this part of the subsection to read as set forth in the text, except for subsequent amendments noted by a footnote indicated in the text.

Housing Act of 1949

(B)? three-fourths of the aggregate net project costs of any such projects which are located in (i) a municipality having a population of fifty thousand or less according to the most recent decennial census, or (ii) a municipality situated in a labor market area which, at the time the contract or contracts involved are entered into or at such earlier time as the Secretary may specify in order to avoid hardship

As originally enacted subparagraph (B) read as follows:

"(B) three-fourths of the aggregate net project costs of any such projects which are located in a municipality having a population of fifty thousand or less (one hundred Pifty thousand or less in the case of a municipality situated in an area which, at the time of the contract or contracts involved are entered into or at such earlier time as the Administrator may specify in order to avoid bardship, is designated as a redevelopment area under the second sentence of section 5(a) of the Area Redevelopment Act) according to the most recent decennial census, and".

Subparagraph (B) was subsequently amended by sec. 313(a) of the Housing and Urban Development Act of 1965, Public Law 89-117, approved August 10, 1965, 79 Stat. 451, 479, to read as follows:

"(B) three-fourths of the aggregate net project costs of any such projects which are located in (i) a municipality baving a population of fifty thousand or less according to the most recent decennial census, or (ii) a municipality situated in a labor market area which, at the time the contract or contracts involved are entered into or at such earlier time as the Administrator may specify in order to avoid hardship, is designated as a redevelopment area under the second sentence of section 5(a) of the Area Redevelopment Act or any other legislation enacted after the date of the enactment of the Housing and Urban Development Act of 1965 containing standards for designation as a redevelopment area generally comparable to those set forth in the second sentence of section 5(a) of the Area Redevelopment Act, and".

Sec. 313(b) of the Housing and Urban Development Act of 1965, Public Law 89-117, approved August 10, 1965, 79 Stat. 451, 479, provided that:

"The amendment made by subsection (a) shall apply only with respect to urban renewal projects placed under contract for capital grant on or after the date of the enactment of this Act, except that such amendment shall apply with respect to all urban renewal projects in the city of Providence, Rhode Island, placed under contract for capital grant during the period Providence was designated as a redevelopment area under section 5(a) of the Area Redevelopment Act (or at such earlier time as the Administrator may specify in order to avoid hardship) and not completed prior to the date of the enactment of this Act."

Housing Act of 1941

or? at any time after such contract or contracts
are entered into and prior to the time the final
grant payment bas been made pursuant thereto, is
designated as a redevelopment area under the
second sentence of section 5(a) of the Area Redevelop-
ment Act or any other legislation enacted after the
date of the enactment of the Housing and Urban
Development Act of 1965 containing standards for
designation as a redevelopment area generally
comparable to those set forth in the second
sentence of section 5(a) of the Area Redevelop-
ment Act, and

(c) three-fourths of the aggregate net
project costs of any of such projects (not
falling within subparagraph (B))which the Secre-
tary, upon request, may approve on a three-fourths
capital grant basis.

(3) A capital grant with respect to any individual project shall not exceed the difference between the net project cost and the local grants-in-aid actually made with respect to the project.

(b) The Secretary may, with the approval of the

"or at any

Isectio

Section 704, Demonstration Cities and Metropolitan Development Act of 1966, Public Law 89-754, approved November 3, 1966, 80 Stat. 1255, 1281, inserted after "to avoid hardship," the following: time after such contract or contracts are entered into and prior to the time the final grant payment has been made pursuant thereto, ".

2

As originally enacted, the first sentence of subsection (b) read as follows:

"(b) The Administrator, on and after July 1, 1949, may, with the approval of the President, contract to make capital grants, with respect to projects assisted under this title, aggregating not to exceed $100,000,000, which limit shall be increased by further amounts of $100,000,000 on July 1 in each of the years 1950, 1951, 1952, and 1953, respectively: PROVIDED, That (subject to the total authorization of not to exceed $500,000,000) such limit, and any such authorized increase therein, may be increased, at any time or times, by additional amounts aggregating not more than $100,000,000 upon & determination by the President, after receiving advice from the Council of Economic Advisers as to the general effect of such increase upon the conditions in the building industry and upon the national economy, that such action is in the public interest.

Sec. 106(a), Housing Amendments of 1955, Public Law 345, 84th Congress, approved Aug. 11, 1955, 69 Stat. 635, 637, struck out "$100,000,000, which limit shall be increased by further amounts

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