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through June, 1961

Grant Authorization

Mass Transportation Demonstration Projects

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

(b) The Administrator may, with the approval of the President,32 contract to make grants under this title aggregating not to exceed $4,000,000,000: Provided, That of such sum the Administrator may, without regard to other provisions of this title, contract to make grants aggregating not to exceed $25,000,000 for mass transportation demonstration projects which he determines will assist in carrying out urban transportation plans and research, including but not limited to the development of data and information of general applicability on the reduction of urban transportation needs, the improvement of mass transportation service, and the contribution of such service toward meeting total urban transportation needs at minimum cost. Such 31 grants shall not be used for major long-term capital improvement; shall not exceed two-thirds of the cost, as determined or estimated by the Administrator, of the project for which the grant is made; and shall be subject to such other terms and conditions as he may prescribe. The "Administrator is authorized, nothwithstanding the provisions of section 3648 of the Revised Statutes, as amended, to make advance or progress payments on account of any grant contracted to be made pursuant to this section. The faith of the United States is solemnly pledged to the payment of all 33 grants contracted for under this title, and there are hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the amounts necessary to provide for such payments: Provided, That any amounts so appropriated shall also be available for repaying to the Secretary of the Treasury, for application to notes of the Administrator, the principal amounts of any funds advanced to local public agencies under this title which the Administrator determines to be uncollectible because of the termination of activities for which such advances were made, together with the interest paid or accrued to the Secretary (as determined by him) attributable to notes given by the Administrator in connection with such advances, but all such repayments shall constitute a charge against the authorization to make contracts for grants contained in this section: Provided further, That no such determination of the Administrator shall be construed to prejudice the rights of the United States with respect to any such advance.

31 The first three sentences of this subsection were inserted by sec. 303 of the Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 166, in lieu of the following sentence: "The Administrator, on and after July 1, 1949, may with the approval of the President, contract to make grants under this title aggregating not to exceed $1,350,000,000, which limit shall be increased by $350,000,000 on the date of enactment of the Housing Act of 1959, and by $300,000,000 on July 1, 1960."

As originally enacted the foregoing sentence 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 a determination by the President, after receiving advice
from the Council of Economic Advisers as to the general effect of such increase upon the condi-
tions in the building industry and upon the national economy, that such action is in the public
interest."

Sec. 106(a) of the Housing Amendments of 1955, Public Law 345, 84th Congress, approved
August 11, 1955, 69 Stat. 635, 637, struck out "$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)”
and substituted "$500,000,000, which limit shall be increased by further amounts of
$200,000,000 on July 1 in each of the years 1955 and 1956, respectively: Provided, That".
Sec. 301 of the Housing Act of 1957, Public Law 85-104, 85th Congress, approved July 12,
1957, 71 Stat. 294, 299, amended the language preceding the proviso to 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 $900,000,000, which limit shall be increased by $350,000,000 on the date of
enactment of the Housing Act of 1957 :".

Sec. 405 (1) of the Housing Act of 1959, Public Law 86-372, approved September 23, 1959,
73 Stat. 654-672 amended the sentence to read as it read immediately prior to its deletion by
the Housing Act of 1961.

32 Executive Order 10530, issued May 10, 1954, 19 Fed. Reg. 2709, empowers the Housing and Home Finance Administrator to perform this function without the approval, ratification, or other action of the President.

33 Sec. 417 (1) of the Housing Act of 1959, Public Law 86-372, approved September 23, 1959, 73 Stat. 654-676, struck out the word "capital" before "grants".

3 Sec. 405 (2) of the Housing Act of 1959, Public Law 86-372, approved September 23, 1959, 73 Stat. 654-672, added this proviso.

A

(c) 35 Notwithstanding any other provision of this or any other Act, if financial assistance authorized by this title to be made available to a locality or local public agency may be made available to any locality or local public agency within the limitations provided in sections 102(e), 103(b), and 106 (e), and the second paragraph following the paragraph numbered (6) of section 110 (c), the amount of such financial assistance made available to any locality or local public agency upon submission and processing of proper application therefor shall not otherwise be restricted except on the basis of (1) urgency of need, and (2) feasibility, as determined by the Administrator.

(d) 36 The Administrator may contract to make grants for the preparation or completion of community renewal programs, which may include, without being limited to, (1) the identification of slum areas or blighted, deteriorated, or deteriorating areas in the community, (2) the measurement of the nature and degree of blight and blighting factors within such areas, (3) determination of the financial, relocation, and other resources needed and available to renew such areas, (4) the identification of potential project areas and, where feasible, types of urban renewal action contemplated within such areas, and (5) scheduling or programing of urban renewal activities. Such programs shall conform, in the determination of the governing body of the locality, to the general plan of the locality as a whole. The Administrator may establish reasonable requirements respecting the scope and content of such programs. No contract for a grant pursuant to this subsection shall be made unless the governing body of the locality involved has approved the preparation or completion of the community renewal program and the submission by the local public agency of an application for such a grant. Notwithstanding section 110(h) or the use in any other provision of this title of the term "local public agency" or "local public agencies", the Administrator may make grants pursuant to this subsection for the preparation or completion of a community renewal program to a single local public body authorized to perform the planning work necessary to such preparation or completion. No grant made pursuant to this subsection shall exceed two-thirds of the cost (as such cost is determined or estimated by the Administrator) of the preparation or completion of the community renewal program for which such grant is made.

Requirements for Local Grants-in-Aid

SEC. 104. Every contract for capital grants under this title shall require local grants-in-aid in connection with the project involved. Such

35 Sec. 405 (3) of the Housing Act of 1959, Public Law 86-372, approved September 23, 1959, 73 Stat. 654-672, added this subsection.

38 Sec. 405 (3) of the Housing Act of 1959, Public Law 86-372, approved September 23, 1959, 73 Stat. 654-672, added this subsection.

37 As originally enacted section 104 read as follows: "Every contract for capital grant under this title shall require local grants-in-aid in connection with the project involved which, together with the local grants-in-aid to be provided in connection with all other projects of the local public agency on which contracts for capital grants have theretofore been made, will be at least equal to one-third of the aggregate net project costs involved (it being the purpose of this provision and section 103 to limit the aggregate of the capital grants made by the Administrator with respect to all the projects of a local public agency on which contracts for capital grants have been made under this title to an amount not exceeding two-thirds of the difference between the aggregate of the gross project costs of all such projects and the aggregate of the total sales prices and capital values referred to in section 110(f) of land in such projects)."

Sec. 306 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 625, substituted "of the property" for "of land" near the end of the section. Sec. 306 of the Housing Act of 1956, Public Law 1020, 84th Congress, approved August 7, 1956, 70 Stat. 1091, 1101, amended section 104 to read as follows:

"Every contract for capital grants under this title shall require local grants-in-aid in connection with the project involved. Such local grants-in-aid, together with the local grants-in-aid to be provided in connection with all other projects of the local public agency on which contracts for capital grants have theretofore been made, shall not be required in excess of one-third of the aggregate net project costs of all projects of the local public agency on which contracts for capital grants have been made."

Sec. 302 (2) of the Housing Act of 1957, Public Law 85-104, approved July 12, 1957, 71 Stat. 294, 300, added at the end of the section "on the two-thirds basis, or in excess of one-fourth of the aggregate net project costs of all projects of the local public agency on which contracts for capital grants have been made on the three-fourths basis".

Sec. 301(b) of the Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 166, amended the second sentence to read as set forth in the text.

613292 O-61-3

through June, 1961

Grants for Community
Renewal Programs

through June, 1961

Approval of Plan

Obligation of Purchasers, etc.

local grants-in-aid, together with the local grants-in-aid to be provided in connection with all other projects of the local public agency (or two or more local public agencies in the same municipality) on which contracts for capital grants have theretofore been made, shall be at least equal to the total of one-third of the aggregate net project costs of such projects undertaken on a two-thirds capital grant basis and one-fourth of the aggregate net project costs of such projects undertaken on a threefourths capital grant basis.

Local Determinations

SEC. 105. Contracts for loans or capital grants 38 shall be made only with a duly authorized local public agency and shall require that

(a) 39 The urban renewal plan 39 for the urban renewal area be approved by the governing body of the locality in which the project is situated, and that such approval include findings by the governing body that (i) the financial aid to be provided in the contract is necessary to enable the project to be undertaken in accordance with the urban renewal plan; (ii) the urban renewal plan will afford maximum opportunity, consistent with the sound needs of the locality as a whole, for the rehabilitation or redevelopment of the urban renewal area by private enterprise; (iii) the urban renewal plan conforms to a general plan for the development of the locality as a whole; and 40 (iv) the urban renewal plan gives due consideration to the provision of adequate park and recreational areas and facilities, as may be desirable for neighborhood improvement, with special consideration for the health, safety, and welfare of children residing in the general vicinity of the site covered by the plan;

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(b) When real property acquired or held by the local public agency in connection with the project is sold or leased, the purchasers or lessees and their assignees shall be obligated (i) to devote such property to the uses specified in the urban renewal plan for the project area; (ii) to begin within a reasonable time any improvements on such property required by the urban renewal plan; and (iii) to comply with such other conditions as the Administrator finds, prior to the execution of the contract for loan or capital grant pursuant to this title, are necessary to carry out the purposes of this title: Provided, That clause (ii) of this subsection shall not apply to mortgagees and others who acquire an interest in such property as the result of the enforcement of any lien or claim thereon: And provided further, That, with respect to any improvements of a type which it is otherwise authorized to undertake, any Federal agency (as defined in section 3 (b) of the Federal Property and Administrative Services Act of

38 Sec. 307 (1) of the Housing Act of 1954, Public Law, 83d Congress, approved August 2, 1954, 68 Stat. 590, 625, substituted "loans or capital grants" for "financial aid".

39 As originally enacted subsection (a) read as follows:

"(a) The redevelopment plan for the project area be approved by the governing body of the locality in which the project is situated, and that such approval include findings by the governing body that (i) the financial aid to be provided in the contract is necessary to enable the land in the project area to be redeveloped in accordance with the redevelopment plan; (ii) the redevelopment plans for the redevelopment areas in the locality will afford maximum opportunity, consistent with the sound needs of the locality as a whole, for the redevelopment of such areas by private enterprise; and (iii) the redevelopment plan conforms to a general plan for the development of the locality as a whole".

Subsection (a) was amended to read as set forth in the text by sec. 307 (2) of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 625, except as indicated by subsequent footnotes.

39a Sec. 302(a) of the Housing Act of 1956 Public Law 1020, 84th Congress, approved August 7, 1956, 70 Stat. 1091, 1097, deleted “(including any redevelopment plan constituting a part thereof)".

40 Sec. 315 of the Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 172 added clause (iv).

41 Subsection (b), down through the first proviso, was amended to read as set forth in the text by sec. 307 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 625. The second proviso was added by sec. 406 of the Housing Act of 1959, Public Law 86-372, approved September 23, 1959, 73 Stat. 654, 673.

As originally enacted subsection (b) read as follows:

"(b) When land acquired or held by the local public agency in connection with the project is sold or leased, the purchasers or lessees shall be obligated (i) to devote such land to the uses specified in the redevelopment plan for the project area; (ii) to begin the building of their improvements on such land within a reasonable time; and (iii) to comply with such other conditions as the Administrator finds, prior to the execution of the contract for loan or capital grant pursuant to this title, are necessary to carry out the purposes of this title ;"

1949, as amended, and also including the District of Columbia or any agency thereof) is hereby authorized to become obligated in accordance with this subsection, except that clause (ii) of this subsection shall apply to such Federal agency only to the extent that it is authorized (and funds have been made available) to make the improvements involved;

(c) There be a feasible method for the temporary relocation of families displaced from the urban renewal 2 area, and that there are or are being provided, in the urban renewal 42 area or in other areas not generally less desirable in regard to public utilities and public and commercial facilities and at rents or prices within the financial means of the families displaced from the urban renewal 42 area, decent, safe, and sanitary dwellings equal in number to the number of and available to such displaced families and reasonably accessible to their places of employment."

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(d) No land for any project to be assisted under this title shall be acquired by the local public agency except after public hearing following notice of the date, time, place, and purpose of such hearing.

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(e) No understanding with respect to, or contract for, the disposition of land within an urban renewal area shall be entered into by a local public agency unless the local public agency shall have first made public, in such form and manner as may be prescribed by the Administrator, (1) the name of the redeveloper, together with the names of its officers and principal members, shareholders and investors, and other interested parties, (2) the redeveloper's estimate of the cost of any residential redevelopment and rehabilitation, and (3) the redeveloper's estimate of rentals and sales prices of any proposed housing involved in such redevelopment and rehabilitation: Provided, That nothing in this subsection shall constitute a basis for contesting the conveyance of, or title to, such land.

General Provisions

SEC. 106. (a) In the performance of, and with respect to, the functions, powers, and duties vested in him by this title, the Administrator, notwithstanding the provisions of any other law, shall

(1) appoint a Director 45 to administer the provisions of this title under the direction and supervision of the Administrator and the basic rate of compensation of such position shall be the same as the basic rate of compensation established for the heads of the constituent agencies of the Housing and Home Finance Agency;

(2) prepare annually and submit a budget program as provided for wholly owned Government corporations by the Government Corporation Control Act, as amended;

(3) maintain an integral set of accounts which shall be audited annually by the General Accounting Office in accordance with the principles and procedures applicable to commercial transactions as provided by the Government Corporation Control Act, as amended, and no other audit shall be required: Provided, That such financial transactions of the Ad

42 Sec. 307 (3) of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 625, substituted "urban renewal" for "project".

43 Sec. 307 (4) of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 625, deleted the following proviso from the end of this subsection: "Provided, That in view of the existing acute housing shortage, each such contract entered into prior to July 1, 1951, shall further provide that there shall be no demolition of residential structures in connection with the project assisted under the contract prior to July 1, 1951, if the local governing body determines that the demolition thereof would reasonably be expected to create undue housing hardship in the locality."

44 Subsection (e) added by Sec. 407 of the Housing Act of 1959, Public Law 86–372, approved September 23, 1959, 73 Stat. 654–673.

45 The Administrator's Reorganization Order No. 1, effective December 23, 1954, 19 Fed. Reg. 9303 (redesignated Dec. 7, 1956, as Administrator's Organizational Order No. 1), established the Urban Renewal Administration as a constituent of the Housing and Home Finance Agency, provided that the office of the Director referred to in this section was transferred to the Urban Renewal Administration, and that the title of the officer was changed to "Urban Renewal Commissioner". The Order also provided that the slum clearance and urban renewal functions of the Housing and Home Finance Administrator under title I of the Housing Act of 1949, except the nondelegable authorities vested in the Administrator pursuant to sec. 101 (c) of the Act, should be administered by the Urban Renewal Commissioner under the supervision and direction of the Administrator.

through June, 1961

Relocation Requirements

Public Hearing

Public Disclosure by
Redevelopers

Director

Budget Program

Accounts and Audits

through June, 1961

Checking Account With
Treasurer

Foreclosure

Payments in Lieu of Taxes

Conveyances

Insurance

ministrator as the making of advances of funds, loans, or 46 grants and vouchers approved by the Administrator in connection with such financial transactions shall be final and conclusive upon all officers of the Government.

(b) Funds made available to the Administrator pursuant to the provisions of this title shall be deposited in a checking account or accounts with the Treasurer of the United States. Receipts and assets obtained or held by the Administrator in connection with the performance of his functions under this title shall be available for any of the purposes of this title (except for 46 grants pursuant to section 103 hereof), and all funds available for carrying out the functions of the Administrator under this title (including appropriations therefor, which are hereby authorized), shall be available, in such amounts as may from year to year be authorized by the Congress, for the administrative expenses of the Administrator in connection with the performance of such functions: Provided," That necessary expenses of inspections and audits, and of providing representatives at the site, of projects being planned or undertaken by local public agencies pursuant to this title shall be compensated by such agencies by the payment of fixed fees which in the aggregate will cover the costs of rendering such services, and such expenses shall be considered nonadministrative; and for the purpose of providing such inspections and audits and of providing representatives at the sites, the Administrator may utilize any agency and such agency may accept reimbursement or payment for such services from such local public agencies or the Administrator, and credit such amounts to the appropriations or funds against which such charges have been made.

(c) In the performance of, and with respect to, the functions, powers, and duties vested in him by this title, the Administrator, notwithstanding the provisions of any other law, may

(1) sue and be sued;

(2) foreclose on any property or commence any action to protect or enforce any right conferred upon him by any law, contract, or other agreement, and bid for and purchase at any foreclosure or any other sale any project or part thereof in connection with which he has made a loan or capital grant pursuant to this title. In the event of any such acquisition, the Administrator may, notwithstanding any other provision of law relating to the acquisition, handling, or disposal of real property by the United States, complete, administer, dispose of, and otherwise deal with, such project or part thereof: Provided, That any such acquisition of real property shall not deprive any State or political subdivision thereof of its civil jurisdiction in and over such property or impair the civil rights under the State or local laws of the inhabitants on such property;

(3) enter into agreements to pay annual sums in lieu of taxes to any State or local taxing authority with respect to any real property so acquired or owned, and such sums shall approximate the taxes which would be paid upon such property to the State or local taxing authority, as the case may be, if such property were not exempt from taxation;

(4) sell or exchange at public or private sale, or lease, real or personal property, and sell or exchange any securities or obligations, upon such terms as he may fix;

(5) obtain insurance against loss in connection with property and other assets held;

46 Sec. 417 (1) of the Housing Act of 1959, Public Law 86-372, approved September 23, 1959, 73 Stat. 654-676, deleted the word "capital" before "grants".

47 Proviso added by sec. 308 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 625.

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