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URBAN RENEWAL PROVISIONS OF THE HOUSING ACT

OF 1949, AS AMENDED THROUGH JUNE, 1961 · Public Law 171, 81st Congress (Chapter 338—1st Session) (S. 1070) (63 Stat. 413, 414; 42 U.S.C. 1441 and 1450 et seq.) An Act To establish a national housing objective and the policy to be followed in the attain.

ment thereof, to provide Federal aid to assist slum-clearance projects and low-rent public housing projects initiated by local agencies, to provide for financial assistance by the Secretary of Agriculture for farm housing, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the “Housing Act of 1949". Declaration of National Housing Policy

Sec. 2. The Congress hereby declares that the general welfare and security of the Nation and the health and living standards of its people require housing production and related community development sufficient to remedy the serious housing shortage, the elimination of substandard and other inadequate housing through the clearance of slums and blighted areas, and the realization as soon as feasible of the goal of a decent home and a suitable living environment for every American family, thus contributing to the development and redevelopment of communities and to the advancement of the growth, wealth, and security of the Nation. The Congress further declares that such production is necessary to enable the housing industry to make its full contribution toward an economy of maximum employment, production, and purchasing power. The policy to be followed in attaining the national housing objective hereby established shall be: (1) private enterprise shall be encouraged to serve as large a part of the total need as it can; (2) governmental assistance shall be utilized where feasible to enable private enterprise to serve more of the total need; (3) appropriate local public bodies shall be encouraged and assisted to undertake positive programs of encouraging and assisting the development of well-planned, integrated residential neighborhoods, the development and redevelopment of communities, and the production, at lower costs, of housing of sound standards of design, construction, livability, and size for adequate family life; (4) governmental assistance to eliminate substandard and other inadequate housing through the clearance of slums and blighted areas, to facilitate community development and redevelopment, and to provide adequate housing for urban and rural non farm families with incomes so low that they are not being decently housed in new or existing housing shall be extended to those localities which estimate their own needs and demonstrate that these needs are not being met through reliance solely upon private enterprise, and without such aid; and (5) governmental assistance for decent, safe, and sanitary farm dwellings and related facilities shall be extended where the farm owner demonstrates that he lacks sufficient resources to provide such housing on his own account and is unable to secure necessary credit for such housing from other sources on terms and conditions which he could reasonably be expected to fulfill. The Housing and Home Finance Agency and its constituent agencies, and any other departments or agencies of the Federal Government having powers, functions, or duties with respect to housing, shall exercise their powers, functions, and duties under this or any other law, consistently with the national housing policy declared by this Act and in such manner as will facilitate sustained progress in attaining the national housing objective hereby established, and in such manner as will encourage and assist (1) the production of housing of sound standards of design, construction, livability, and size for adequate family life; (2) the reduction of the costs of housing without sacrifice of such sound standards; (3) the use of new designs, materials, techniques, and methods in residential construction, the use of standardized dimensions and methods of assembly of home-building materials and equipment, and the increase of efficiency in residential construction and maintenance; (4) the development of well-planned, integrated, residential neighborhoods and the development and redevelopment of communities; and (5) the stabilization of the housing industry at a high annual volume of residential construction.

1 The urban renewal provisions of the Housing Act of 1949 have been a mended by Public Law 370, 820 Congress, approved June 3, 1952, 66 Stat. 98: Housing Amendments of 1953, Public Law 94, 83d Congress, approved June 30, 1953, 67 Stat. 121 : Housing Act of 1954, Public Law 560, 83d Congress, approved August 2.' 1954, 68 Stat. 590 : Housing Amendments of 1955. Public Law 345, 84th Congress, approved August 11, 1955, 69 Stat. 635 : the Housing Act of 1956, Public Law 1020, 84th Congress, approved August 7. 1956. 70 Stat. 1091 : the Housing Act of 1957, Public Law 85-104, 85th Congress, approved July 12. 1957. 71 Stat. 294 ; the Housing Act of 1959, Public Law 86-372, approved September 23, 1959, 73 Stat. 654; the Area Redevelopment Act, Public Law 87-27, approved May 1, 1961, 75 Stat. 47; and the Housing Act of 1961, Public Law 87–70, approved June 30, 1961, 75 Stat. 149.

through June, 1961

Title Slum Clearance and Urban Renewal ? Urban

Renewal Fund

Sec. 100.3 The authorizations, funds, and appropriations available pursuant to sections 102 and 103 hereof shall constitute a fund, to be known as the “Urban Renewal Fund”, and shall be available for advances, loans, and grants * to local public agencies for urban renewal projects in accordance with the provisions of this title, and all contracts, obligations, assets, and liabilities existing under or pursuant to said sections prior to the enactment of the Housing Act of 1954 are hereby transferred to said Fund.

Positive Programs

Local Responsibilities

Sec. 101. (a) • In entering into any contract for advances for surveys, plans, and other preliminary work for projects under this title or for grants pursuant to section 103(d), the Administrator shall give consideration to the extent to which appropriate local public bodies have undertaken positive programs (through the adoption, modernization, administration, and enforcement of housing, zoning, building and other local laws, codes and regulations relating to land use and adequate standards of health, sanitation, and safety for buildings, including the use and occupancy of dwellings) for (1) preventing the spread or recurrence in the community of slums and blighted areas, and (2) encouraging housing cost reductions through the use of appropriate new materials, techniques, and methods in land and residential planning, design, and construction, the increase of efficiency in residential construction, and the elimination of restrictive practices which unnecessarily increase housing costs.

(b) In the administration of this title, the Administrator shall encourage the operations of such local public agencies as are established on a State, or regional (within a State), or unified metropolitan basis or as are established on such other basis as permits such agencies to contribute effectively toward the solution of community development or redevelopment problems on a State, or regional (within a State), or unified metropolitan basis. The 8 Administrator shall particularly encourage the

Metropolitan Area Basis

* Prior to amendment by the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 622, the heading of Title I was “Slum Clearance and Community Development and Redevelopment".

* Section 100 was added by the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 622.

Sec. 417(1) of the Housing Act of 1959, Public Law 86–372, approved September 23, 1959,
73 Stat. 654-676, substituted "grants" for "capital grants”.

5 As originally enacted subsection (a) read as follows:
"SEC. 101. In extending financial assistance under this title, the Administrator shall-

“(a) give consideration to the extent to which appropriate local public bodies have undertaken positive programs (1) for encouraging housing cost reductions through the adoption, improvement, and modernization of building and other local codes and regulations so as to permit the use of appropriate new materials, techniques, and methods in land and residential planning, design, and construction, the increase of efficiency in residential construction, and the elimination of restrictive practices which unnecessarily increase housing costs, and (2) for preventing the spread or recurrence, in such community, of slums and blighted areas through the adoption, improvement, and modernization of local codes and regulations relating to land use and adequate standards of health,

sanitation, and safety for dwelling accommodations ; and". Subsection (a) was amended to read as set forth in the text, except for subsequent amendments noted by footnotes indicated in the text, by sec. 303 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 623.

& Sec. 417(2) of the Housing Act of 1959, Public Law 86-372, approved September 23, 1959, 73 Stat. 654, 677, inserted “or for grants pursuant to section 103(d)".

The first sentence of subsection (b) was amended to read as set forth in the text by sec. 303 of the using A of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat, 590, 623. As originally enacted subsection (b) was part of one sentence which also contained subsection (a): Without subsection (a) this sentence read as follows: "SEC. 101. In extending financial assistance under this title, the Administrator shall

(a)
"ib) encourage the operations of such local public agencies as are established on a
State, or regional (within a State), or unified metropolitan basis or as are established on
such other basis as permits such agencies to contribute effectively toward the solution of
community development or redevelopment problems on a State, or regional (within a

State), or unified metropolitan basis.'
See footnotes to subsection (a) for history of provisions of that subsection.

8 This sentence was added by sec. 401 of the Housing Act of 1959, Public Law 86–372, approved September 23, 1959, 73 Stat. 654, 670.

613292 0 - 61 - 2

through June, 1961

Utilization of State Agencies as Local Public Agencies

Workable Program

utilization of local public agencies established by the States to operate on a statewide basis in behalf of smaller communities within the State which are undertaking or propose to undertake urban renewal programs whenever that arrangement facilitates the undertaking of an urban renewal program by any such community, or provides an effective solution to community development or redevelopment problems in such communities, and is approved by resolution or ordinance of the governing bodies of the affected communities.

(c)' No contract shall be entered into for any loan or capital grant under this title, or for annual contributions or capital grants pursuant to the United States Housing Act of 1937, as amended, 10 for any project or projects not constructed or covered by a contract for annual contributions prior to August 1, 1956, and no mortgage shall be insured, and no commitment to insure a mortgage shall be issued, under section 220 or section 221(d) (3) of the National Housing Act, as amended, unless (1) there is presented to the Administrator by the locality a workable program for 12 community improvement (which shall includeran official

plan of action, as it exists from time to time, for effectively dealing with the problem of urban slums and blight within the community and for the establishment and preservation of a well-planned community with wellorganized residential neighborhoods of decent homes and suitable living environment for adequate family life) for utilizing appropriate private and public resources to eliminate, and prevent the development or spread of, slums and urban blight, to encourage needed urban rehabilitation, to provide for the redevelopment of blighted, deteriorated, or slum areas, or to undertake such of the aforesaid activities or other feasible community activities as may be suitably employed to achieve the objectives of such a program, and (2) on the basis of his review of such program, the Administrator determines that such program meets the requirements of this subsection and certifies to the constituent agencies affected that the Federal assistance may be made available in such community: Provided, That this sentence shall not apply to the insurance of, or commitment to insure, a mortgage under section 220 of the National Housing Act, as amended, if the mortgaged property is in an area referred to in clause (A) (i) of paragraph (1) of 13 section 220(d) of the National Housing Act': And provided further, That, notwithstanding any other provisions of law which would authorize such delegation or transfer, there shall not be delegated or transferred to any other official (except an officer or employee of the Housing and Home Finance Agency serving as Acting Administrator during the absence or disability of the Administrator or in the event of a vacany in that office) the final authority vested in the Administrator (i) to determine whether any such workable program meets the requirements of this subsection, (ii) to make the certification that

Delegation Prohibited

• Subsection (c) added by sec. 303 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 623.

io Sec. 402 of the Housing Act of 1956, Public Law 1020, 70 Stat. 1091, 1103, reinserted reference to the U.S. Housing Act of 1937 (previously removed by sec. 108 of the Housing Amendments of 1955, Public Law 345, 84th Congress, approved August 11, 1955, 69 Stat. 635, 638) which makes the workable program requirement applicable to contracts for low-rent public housing,

Sec. 108(b) of the Housing Amendments of 1955 removed the following requirements from Sec. 10(1) of the United States Housing Act of 1937, as amended, 50 Stat. 888, 42 U.S.C. 1401, which were prerequisites to communities entering into new contracts for Federal assistance to low-rent public housing units : (1) that the community must be carrying on a slum clearance and urban redevelopment project, or a slum clearance and urban renewal project, assisted under title I of the Housing Act of 1949, as amended, and (2) that the local governing body of the community must certify that the new public housing project is necessary to assist in meeting the relocation requirements of section 105 (c) of the Housing Act of 1949, as amended.

See excerpts from the United States Housing Act of 1937 starting on page 49.

11 Sec. 101 (b) (1) of the Housing Act of 1961, Public Law 87–70, approved June 30, 1961, 75 Stat. 149, 153 substituted "section 221(d) (3)” for “or 221".

See excerpts from the National Housing Act starting on page 34. 12 Sec. 314 (a) of the Housing Act of 1961, Public Law 87–70, approved June 30, 1961, 75 Stat. 149, 172 inserted "for community improvement".

13 Sec. 101(b) (2) of the Housing Act of 1961, Public Law 87–70, approved June 30, 1961, 75 Stat. 149, 153, struck out “of section 220(d), or under section 221 of the National Housing Act, as amended, if the mortgaged property is in an area described in clause (3) of section 221 (a) of said Act, or in a community referred to in clause (2) (B) of said section" and inserted in lieu thereof "of section 220(d) of the National Housing Act".

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