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Housing Act of 1949

of section 110 (c); and (3) the provision, at
their cost, of public buildings or other public
facilities (other than publicly owned housing
and revenue producing public utilities the
capital cost of which is wholly financed with
local bonds or obligations payable solely out
of revenues derived from service charges) which
are necessary for carrying out in the area the
urban renewal objectives of this title in
accordance with the urban renewal plan: Provided,
That in any case where, in the determination of the
Secretary, any park, playground, public building,
or other public facility is of direct benefit both
to the urban renewal area and to other areas, and
the approximate degree of the benefit to such
other areas is estimated by the Secretary at
20 per centum or more of the total benefits, the
Secretary shall provide that, for the purpose of
computing the amount of the local grants-in-aid
for the project, there shall be included only such
portion of the cost of such facility as the Secretary
estimates to be proportionate to the approximate
degree of the benefit of such facility to the urban
renewal area: Provided further,? That any publicly
owned facility, the construction of which was begun
not earlier than three years prior to the date of
enactment of the Demonstration Cities and Metropolitan
Development Act of 1966, shall be deemed to benefit
an urban renewal project or projects to the extent
of 25 per centum of the total benefits of such
facility, or $3,500,000, whichever is less, if such
facility (A) (i) is used, or is to be used, by
the public predominantly for cultural, exhibition, or
civic purposes, or is a city hall or a public safety
building, or (ii) is a facility constructed or
rehabilitated by a public university which is or will be

1

Sec. 302(c), Housing Act of 1956, Public Law 1020, 84th Congress, approved Aug. 7, 1956, 70 Stat. 1091, 1099, deleted at this point public facilities financed by special assessments against land in the project area, ".

2

Sec. 701, Demonstration Cities and Metropolitan Development Act of 1966, Public Law 89-754, approved November 3, 1966, 80 Stat. 1255, 1280, added this proviso.

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Housing Act of 1949

devoted to the treatment of physical or
mental disabilities and illness or to medical
research; (B) is located within, adjacent to,
or in the immediate vicinity of such urban
renewal project or projects; (c) is found
to contribute materially to the objectives of the
urban renewal plan or plans for such project
or projects; and (D) is not otherwise eligible
as a local grant-in-aid: And provided further,
That for the purpose of computing the amount of
local grants-in-aid under this section 110(a)
withl respect to any project covered by a
Federal-aid contract under this title, the
estimated cost (as determined by the Secretary)
of parks, playgrounds, public buildings, or
other public facilities may be deemed to be the
actual cost thereof if (i) the construction
or provision thereof is not completed at the time
of final disposition of land in the project to be
acquired and disposed of under the urban renewal
plan, and (ii) the Secretary has received
assurance satisfactory to him that such park,
playground, public building, or other public
facility will be constructed or completed when
needed and within a time prescribed by him:
And provided further, That in any case where a
public facility furnished as a local grant-in-aid
is financed in whole or in part by special assessments
against real property in the project area acquired
by the local public agency as part of the project,
an amount equal to the total special assessments
against such real property (or, in the case of
a computation pursuant to the proviso immediately
preceding, the estimated amount of such total
special assessments) shall be deducted from the
cost of such facility for the purpose of computing
the amount of the local grants-in-aid for the
project. With respect to any demolition or removal

SPECIAL
ASSESSMENTS

FEDERAL AID

1sec. 306, Housing Act of 1957, Public Law 85-104, approved July 12, 1957, 71 Stat. 294, 301, inserted "with respect to any project covered by a Federal-aid contract under this title".

This proviso added by sec. 302(c), Housing Act of 1956, Public Law 1020, 84th Congress, approved Aug. 7, 1956, 70 Stat. 1091, 1099.

2

Housing Act of 1949

FACILITIES
COMMENCED PRIOR
TO LOAN OR
CAPITAL GRANT
CONTRACT

work, improvement or facility for which a State,
municipality, or other public body has received
or has contracted to receive any grant or subsidy
from the United States, or any agency or instru-
mentality thereof, the portion of the cost thereof
defrayed or estimated by the Secretary to be
defrayed with such subsidy or grant shall not be
eligible for inclusion as a local grant-in-aid.

Notwithstanding any other provision of this
subsection, no donation or provision of a public
improvement or public facility of a type falling
within the purview of this subsection shall be
deemed to be ineligible as a local grant-in-aid
for any project solely on the basis that the con-
struction of such improvement or facility was
commenced without notification to the Secretary
or prior to Federal recognition of such project,
if such construction was commenced not more than
three years prior to the authorization by the
Secretary of a contract for loan or capital
grant for the project.

Where a project in any municipality includes an area affected by an underground mine fire or by a coal mine subsidence and where it is necessary in such project to remove any underlying coal deposits in order to stabilize the soil or to control the underground mine fire, then any royalties received by the project from the removal and sale of such coal deposits shall be credited to the project as a local grant-in-aid made by such municipality.

(+)3 "Gross project cost" shall comprise (1) the amount of the expenditures by the local public

COAL ROYALTIES

1

Sec. 414(a), Housing Act of 1959, Public Law 86-372, approved Sept. 23, 1959, 73 Stat. 654-675, added this paragraph.

2sec. 314(a), Housing and Urban Development Act of 1965, Public Law 89-117, approved August 10, 1965, 79 Stat. 451, 479, added this paragraph.

Sec. 314(b), Housing and Urban Development Act of 1965 authorized urban renewal contracts executed prior to the date of enactment of that Act (August 10, 1965) to be amended to permit the crediting of coal royalties received by an urban renewal project as a local grantin-aid.

3seç. 415, Housing Act of 1959, Public Law (Footnote continued on next page.)

Housing Act of 1949

GROSS PROJECT
COSTS

agency, with respect to any and all undertakings
necessary to carry out the project (including the
payment of carrying charges, but not beyond the
point where the project is completed), and (2)
the amount of such local grants-in-aid as are
furnished in forms other than cash. There?

may
be included as part of the gross project cost,

Footnote continued from preceding page) 86-372, approved Sept. 23, 1959, 73 Stat. 654, 675, amended the first sentence of this subsection to read as set forth in the text.

As originally enacted the first sentence in subsection (e) read as follows:

"(e) 'Gross project cost' shall comprise (1) the amount of the expenditures by the local public agency with respect to any and all undertakings necessary to carry out the project (including the payment of carrying charges, but not beyond the point where the project is completed), and (2) the amount of such local grants-in-aid as are furnished in forms other than cash.

Sec. 302(4), Housing Act of 1957, Public Law 85-104, approved July 12, 1957, 71 Stat. 294, 300, added the following proviso to the first sentence in subsection (e):

"Provided, That with respect to a project for which a contract for capital grant has been executed on a three-fourths basis pursuant to the proviso in the second sentence of section 103(a), gross project cost shall include, in lieu of the amount specified in clause (i), the amount of the expenditures by the local public agency with respect to the following undertakings and activities necessary to carry out such project:

(1) acquisition of land (but only to the extent of the consideration paid to the owner and not title, appraisal, negotiating, legal, or any other expenditures of the local public agency incidental to acquiring land), disposition of land, demolition and removal of buildings and improvements, and site preparation and improvements, all as provided in paragraphs (1), (2), (3), (4), and (6) of section 110(c); and

(ii) the payment of carrying charges related to the undertakings in clause (1), exclusive of taxes and payments in lieu of taxes, but not beyond the point where such a project is completed; but not the cost of any other undertakings and activities (including, but without being limited to, the cost of surveys and plans, legal services of any kind, and all administrative and overhead expenses of the local public agency) with respect to such project.

This sentence was added by sec. 415, Rousing Act of 1959, Public Law 86-372, approved Sept. 23, 1959, 73 Stat. 654, 675.

Housing Act of 1949

under any contract for loan or grant heretofore
or hereafter executed under this title, with
respect to moneys of the local public agency
which are actually expended and outstanding for
undertakings (other than in the form of local
grants-in-aid) necessary to carry out the project,
in the absence of carrying charges on such moneys,
an amount in lieu of carrying charges which might
otherwise have been payable thereon for the period
such moneys are expended and outstanding but not
beyond the point where the project is completed,
computed for each six-month period or portion
thereof, at an interest rate to be determined by
the Secretary after taking into consideration for
each preceding six-month period the average
interest rate borne by any obligations of local
public agencies for short-term funds obtained
from sources other than the Federal Government
in the manner provided in section 102(c): Provided,
That such amount may be computed on the net total of
all such moneys of the local public agency remain-
ing expended and outstanding, less other moneys
received from the project undertaken in excess
of project expenditures, in all projects of the
local public agency under this title and allocated,
as the Secretary may determine, to each of such
projects. With respect to a project for which
a contract for capital grant has been executed on
a three fourths basis pursuant to section 103(a)
(2) (c) gross project cost shall include in lieu
of the amount specified in clause (1) above, the
amount of the expenditures by the local public
agency with respect to the following undertakings and
activities necessary to carry out such project:

THREE-FOURTHS LIMITUNED GRANT PROJECTS

IThis sentence was added by sec. 415, Housing Act of 1959, Public Taw 86-372, approved Sept. 23, 1959, 73 Stat. 654, 675, and amended as indicated by subsequent footnotes.

2sec. 301(c), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 166, substituted "pursuant to section 103(a) (2) (c)" for "pursuant to the proviso in the second sentence of section 103(a)".

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