an urban renewal service, and (2) the assembly, etc., of information pertaining to programs under this subchapter.

AMENDMENT OF CONTRACTS FOR INCORPORATION OF CERTAIN COST PROVISIONS

Section 301(d) of Pub. L. 88-560 provided that: "Any contract for a capital grant under title I of the Housing Act of 1949 [this subchapter], executed prior to the date of enactment of this Act [Sept. 2, 1964], may be amended to incorporate the provisions of subsection (c) [of section 1460 of this title] for costs incurred on or after such date."

CROSS REFERENCES

"Workable program" requirements of subsection (c) of this section not applicable to urban renewal in disaster area, see section 1462 of this title.

§ 1451a. Repealed. Aug. 2, 1954, ch. 649, title III, § 313, 68 Stat. 629.

Section, acts July 31, 1953, ch. 302, title I, § 101, 67 Stat. 305; June 24, 1954, ch. 359, title I, § 101, 68 Stat. 283, which provided that the authority under this subchapter should be used to the utmost in connection with slum rehabilitation needs, is now covered by other sections in this subchapter. See, particularly, sections 1451 and 1455 of this title.

§ 1452. Loans.

(a) Temporary and definitive loans; amounts; interest rates; security; repayment.

To assist local communities in the elimination of slums and blighted or deteriorated or deteriorating areas, in preventing the spread of slums, blight or deterioration, and in providing maximum opportunity for the redevelopment, rehabilitation, and conservation of such areas by private enterprise, the Administrator may make temporary and definitive loans to local public agencies in accordance with the provisions of this subchapter for the undertaking of urban renewal projects. Such loans (outstanding at any one time) shall be in such amounts not exceeding the estimated expenditures to be made by the local public agency for such purposes, bear interest at such rate (not less than the applicable going Federal rate), be secured in such manner, and be repaid within such period (not exceeding, in the case of definitive loans, forty years from the date of the bonds or other obligations evidencing such loans), as may be deemed advisable by the Administrator. In any case where, in connection with its undertaking and carrying out of an urban renewal project, a local public agency is authorized (under the circumstances in which the temporary loan herein provided is requested) to acquire real property in the urban renewal area, the Administrator, in addition to all other authority under this subchapter and notwithstanding any other provisions of this subchapter, regardless of the stage of development of the urban renewal plan and whether before or after the approval thereof, may make a temporary loan or loans to any such local public agency to finance the acquisition of such real property: Provided, That no loan for such purpose shall be made unless (1) the governing body of the locality involved shall have approved by resolution or ordinance the acquisition of real property in the urban renewal area, and (2) either (A) the Administrator shall have determined that such loan is reasonably secured by a first mortgage or other prior lien upon such real property or is otherwise reasonably secured, or (B) the governing body of the locality

shall have assumed the responsibility to bear any loss that may arise as the result of such acquisition in the event that the property so acquired is not used for urban renewal purposes because the urban renewal plan for the project is not approved, or is amended to omit any of the acquired property, or is abandoned for any reason: Provided further, That the Administrator may, in his discretion and subject to such conditions as he may impose, permit any structure so acquired to be demolished and removed, and may include in any loan authorized by this section the cost of such demolition and removal, together with administrative, relocation, and other related costs and payments, if the approval of the local governing body extends to such demolition and removal: And provided further, That the loan contract shall provide that the local public agency shall not dispose of such real property (except in lieu of foreclosure) until the local governing body of the locality involved shall have either approved the urban renewal plan for the project or consented to the disposal of such real property. Notwithstanding any other provision of this subchapter, the Administrator may make a temporary loan, as described in the first two sentences of this subsection, for two or more urban renewal projects being carried out by the same local public agency. The principal amount of any such loan which is outstanding at any one time shall not exceed the estimated expenditures to be made by the local public agency for such projects.

(b) Projects on open or predominantly open land.

In connection with any project on land which is open or predominantly open, the Administrator may make temporary loans to municipalities or other public bodies for the provision of public buildings or facilities necessary to serve or support the new uses of such land in the project area. Such temporary loans shall be in such amounts not exceeding the expenditures to be made for such purpose, bear interest at such rate (not less than the applicable going Federal rate), be secured in such manner, and be repaid within such period (not exceeding ten years from the date of the obligations evidencing such loans), as may be deemed advisable by the Administrator.

(c) Renegotiation of loans at lower interest rate; pledge of loan contract; payment of principal and interest; construction of contracts and other obligations; incontestability; full faith and credit. Loans made pursuant to subsection (a) or (b) of this section may be made subject to the condition that, if at any time or times or for any period or periods during the life of the loan contract the local public agency can obtain loan funds from sources other than the Federal Government at interest rates lower than provided in the loan contract, it may do so with the consent of the Administrator at such times and for such periods without waiving or surrendering any rights to loan funds under the contract for the remainder of the life of such contract, and, in any such case, the Administrator is authorized to consent to a pledge by the local public agency of the loan contract, and any or all of its rights thereunder, as security for the repayment of the principal of and the interest on the loan funds

so obtained from other sources. In connection with any such pledge of a loan contract, including loan payments thereunder, as security for the repayment of obligations of the local public agency held by other than the Federal Government, the Administrator is authorized to agree to pay, through operations of a paying agent or agents, and to pay or cause to be paid when due, from funds obtained pursuant to subsection (e) of this section, to the holders of such obligations (or to their agents or designees) the principal of and the interest of such obligations, subject to such conditions as the Administrator may determine but without regard to any other condition or requirement. Notwithstanding any other provision of law, any contract or other instrument executed by the Administrator which by its terms, includes an obligation of the Administrator to make payment pursuant to this subsection shall be construed by all officers of the United States separate and apart from the loan contract and shall be incontestable in the hands of a bearer and the full faith and credit of the United States is pledged to the payment of all amounts agreed to be paid by the Administrator pursuant to this subsection.

(d) Advances for surveys and plans; repayment; interest rate; application; General Neighborhood Renewal Plans.

The Administrator may make advances of funds to local public agencies for surveys of urban areas to determine whether the undertaking of urban renewal projects therein may be feasible and for surveys and plans for urban renewal projects which may be assisted under this subchapter, including, but not limited to, (i) plans for carrying out a program of voluntary repair and rehabilitation of buildings and improvements, (ii) plans for the enforcement of State and local laws, codes, and regulations relating to the use of land and the use and occupancy of buildings and improvements, and to the compulsory repair, rehabilitation, demolition, or removal of buildings and improvements, and (iii) appraisals, title searches, and other preliminary work necessary to prepare for the acquisition of land in connection with the undertaking of such projects. The contract for any such advance of funds shall be made upon the condition that such advance of funds shall be repaid, with interest at not less than the applicable going Federal rate, out of any moneys which become available to the local public agency for the undertaking of the project involved. No contract for any such advances of funds for surveys and plans for urban renewal projects which may be assisted under this subchapter shall be made unless the governing body of the locality involved has by resolution or ordinance approved the undertaking of such surveys and plans and the submission by the local public agency of an application for such advance of funds. Notwithstanding section 1460 (h) of this title or the use in any other provision of this subchapter of the term "local public agency" or "local public agencies" the Administrator may make advances of funds under this subsection for surveys and plans for an urban renewal project (including General Neighborhood Renewal Plans as hereinafter defined) to a single local public body which has the authority to undertake and

carry out a substantial portion, as determined by the Administrator, of the surveys and plans or the project respecting which such surveys and plans are to be made: Provided, That the application for such advances shows, to the satisfaction of the Administrator, that the filing thereof has been approved by the public body or bodies authorized to undertake the other portions of the surveys and plans or of the project which the applicant is not authorized to undertake.

In order to facilitate proper preliminary planning for the attainment of the urban renewal objectives of this subchapter, the Administrator may also make advances of funds (in addition to those authorized above) to local public agencies for the preparation of General Neighborhood Renewal Plans (as herein defined) for urban renewal areas of such scope that the urban renewal activities therein may have to be carried out in stages, consistent with the capacity and resources of the respective local public agency, over an estimated period of not more than ten years. No contract for advances for the preparation of a General Neighborhood Renewal Plan may be made unless the Administrator has determined that:

(1) in the interest of sound community planning, it is desirable that the urban renewal area be planned for urban renewal purposes in its entirety;

(2) the local public agency proposes to undertake promptly an urban renewal project embracing at least 10 per centum of such area, upon completion of the General Neighborhood Renewal Plan and the preparation of an urban renewal plan for such project; and

(3) the governing body of the locality has by resolution or ordinance (i) approved the undertaking of the General Neighborhood Renewal Plan and the submission of an application for such advance and (ii) represented that such plan will be used to the fullest extent feasible as a guide for the provision of public improvements in such area and that the plan will be considered in formulating codes and other regulatory measures affecting property in the area and in undertaking other local governmental activities pertaining to the development, redevelopment, rehabilitation, and conservation of the area. The contract for any such advance of funds for a General Neighborhood Renewal Plan shall be made upon the condition that such advance shall be repaid, with interest at not less than the applicable going Federal rate, out of any moneys which become available to the local public agency for the undertaking of the first urban renewal project in such area: Provided, That in the event of the undertaking of any other project or projects in such area an appropriate allocation of the amount of the advance, with interest, may be effected to the end that each such project may bear its proper allocable part, as determined by the Administrator, of the cost of the General Neighborhood Renewal Plan. As used herein, a General Neighborhood Renewal Plan means a preliminary plan (conforming, in the determination of the governing body of the locality, to the general plan of the locality as a whole and to the workable program of the community meeting

The total amount of loan contracts outstanding at any one time under this subchapter shall not 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 subchapter, the Administrator 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 Administrator shall 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.

(f) Notes and obligations; form and denomination; maturity date; interest rate; purchase and sale by Treasury; public debt transaction. Notes or other obligations issued by the Administrator under this subchapter shall be in such forms and denominations, have such maturities, and be subject to such terms and conditions as may be prescribed by the Administrator, 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 consideration 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 Administrator issued under this subchapter 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.

(g) Tax exemption.

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

States. (July 15, 1949, ch. 338, title I, § 102, 63 Stat. 414; Aug. 2, 1954, ch. 649, title III, § 304, 68 Stat. 624; Aug. 7, 1956, ch. 1029, title III, §§ 301, 303, 70 Stat. 1097, 1099; Sept. 23, 1959, Pub. L. 86-372, title IV, §§ 402-404, 73 Stat. 671; June 30, 1961, Pub. L. 8770, title III, §§ 302 (a), 314(b), 75 Stat. 166, 172; Sept. 2, 1964, Pub. L. 88-560, title III, § 303 (a), 78 Stat. 785.)

REFERENCES IN TEXT

The Second Liberty Bond Act, as amended, referred to in subsection (f), is classified to sections 745, 752-754b, 757, 757b-758, 760, 764-766, 769, 771, 773, 774, and 801 of Title 31, Money and Finance.

Such Act, as amended, referred to in subsection (f), refers to the Second Liberty Bond Act.

AMENDMENTS

1964 Subsec. (a). Pub. L. 88-560 authorized the Administrator to make temporary loans for two or more urban renewal projects being carried out by the same local public agency, not exceeding at any one time, the estimated expenditures to be made by the local public agency for such projects.

1961-Subsec. (a). Pub. L. 87-70, § 314(b), inserted the words, "together with administrative, relocation, and other related costs and payments," following "the cost of such demolition and removal."

Subsec. (c). Pub. L. 87-70, § 302(a), authorized the Administrator, in connection with any pledge of a loan contract, including loan payments thereunder, as security for the repayment of obligations of the local public agency held by other than the Federal Government, to agree to pay, through operations of a paying agent or agents, and to pay or cause to be paid when due, to the holders of such obligations (or to their agents or designees) the principal and interest on such obligations, and inserted provisions requiring contracts or other instruments which include an obligation of the Administrator to make payment pursuant to this subsection to be construed separate and apart from the loan contract, which state that they are incontestable and which pledge the full faith and credit of the United States to the payment.

1959 Subsec. (a). Pub. L. 86-372, §§ 402 (a), 403, substituted "for such purposes" for "as part of the gross project cost" in the second sentence, and inserted provisions authorizing the Administrator to make a temporary loan or loans to a local public agency to finance the acquisition of real property regardless of the stage of development of the urban renewal plan and whether before or after the approval thereof.

Subsec. (c). Pub. L. 86-372, § 402(b), substituted "repayment of the principal of and the interest on the loan funds" for "repayment of the loan funds."

Subsec. (e). Pub. L. 86-372, § 404, among other changes, inserted provisions limiting the total amount of loan contracts outstanding at any one time under this subchapter to not more than 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, and requiring the Administrator, for the purpose of establishing unpaid obligations as of a given date against the authorization, to 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, and eliminated provisions which authorized the limitation (subject to the total authorization of $1,000,000,000) to be increased by additional amounts aggregating not more than $250,000,000 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 conditions in the building industry and upon the national economy, that such action is in the public interest.

1956-Subsec. (d). Act Aug. 7, 1956, added provisions to permit Administrator to advance funds for surveys to agency authorized to carry out substantial portion of project respecting which surveys and plans are to be made, provided application for advances shows filing has been approved by public bodies authorized to undertake

other portions of project which applicant is not authorized to undertake, added "surveys of urban areas to determine whether the undertaking of urban renewal projects therein may be feasible and for" following "The Administrator may make advances of funds to local public agencies for", and added provisions at the end relating to General Neighborhood Renewal Plans.

1954 - Subsec. (a). Act Aug. 2, 1954, § 304 (1) (2), in first sentence, redefined the areas to be eliminated, and redefined "projects" (referred to as urban renewal projects); and, in second sentence, substituted "estimated expenditures" for "expenditures", and substituted "bonds or other obligations" for "bonds".

Subsec. (b). Act Aug. 2, 1954, § 304 (3) (4), near end of first sentence, inserted "such" before "land", and, in second sentence, substituted "at" for "as", before "such rate".

Subsec. (d). Act Aug. 2, 1954, § 304 (5), included among the advances of funds (1) plans for carrying out a program of voluntary repair and rehabilitation of buildings and improvements, (2) plans for enforcement of State and local laws, codes and regulations relating to the use and occupancy of buildings and improvements, and to the compulsory repair, demolition or removal of buildings and improvements, and (3) appraisals, title searches and other preliminary work necessary to prepare for the acquisition of land in connection with the undertaking of the projects referred to, and provided that no such advance could be made in connection with any urban renewal project unless the governing body of the locality involved has approved (by resolution or ordinance) the undertaking of the surveys and plans and the submission by the local public agency of an application for the advance of funds.

DELEGATION OF FUNCTIONS

For delegation of functions, vested in the President by subsection (e) of this section, to the Housing and Home Finance Administrator, see section 4 (a) of Ex. Ord. No. 10530, May 10, 1954, 19 F.R. 2709, set out as a note under section 301 of Title 3, The President.

CROSS REFERENCE

Blighted or deteriorated area requirement, urban renewal disaster area, see section 1462 of this title.

§ 1452a. Grants for preventing and eliminating slums and urban blight; preferences; reports, summaries, and informational material; aggregate amount; advance or progress payments.

(a) The Housing and Home Finance Administrator is authorized to make grants, subject to such terms and conditions as he shall prescribe, to public bodies, including cities and other political subdivisions, to assist them in developing, testing, and reporting methods and techniques, and carrying out demonstrations and other activities for the prevention and the elimination of slums and urban blight. No such grant shall exceed two-thirds of the cost, as determined or estimated by said Administrator, of such activities of undertakings, but such a grant may in addition cover the full cost of writing and publishing the reports on such activities and undertakings. In administering this section, said Administrator shall give preference to those activities and undertakings which in his judgment can reasonably be expected to (1) contribute most significantly to the improvement of methods and techniques for the elimination and prevention of slums and blight, and (2) best serve to guide renewal programs in other communities.

(b) The Administrator is further authorized to pay for the cost of (1) writing and publishing reports on activities and undertakings financed by grants made under this section, as well as reports on similar activities and undertakings, not so financed,

which are of significant value in furthering the purposes of this section, and (2) writing and publishing summaries and other informational material on such reports.

(c) The aggregate amount of grants made under subsection (a) of this section, and other costs incurred pursuant to subsection (b) of this section, shall not exceed $10,000,000 and shall be payable from the grant funds provided under and authorized by section 1453 (b) of this title. The Administrator may make advance or progress payments on account of any contract entered into pursuant to this section, notwithstanding the provisions of section 529 of Title 31. (Aug. 2, 1954, ch. 649, title III, § 314, 68 Stat. 629; Sept. 2, 1964, Pub. L. 88-560, title III, § 313, 78 Stat. 792.)

CODIFICATION

Section was enacted as a part of the Housing Act of 1954, and not as a part of the Housing Act of 1949, which comprises this chapter.

AMENDMENTS

1964-Pub. L. 88-560 provided that a grant may cover the full cost of writing and publishing reports on activities and undertakings, authorized the Administrator to pay costs of reports on activities financed under this section as well as on similar activities, not so financed, of significant value in furthering the purposes of this section, and summaries and other informational material on such reports, and increased the aggregate amount of grants made under the section from $5,000,000 to $10,000,000.

§ 1452b. Rehabilitation loans. (a) Considerations.

To assist rehabilitation in an urban renewal area 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 reasonable 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) Definitions.

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 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 1460 (a) of this title

(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) Limitations.

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 three-fourths 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 1715k (h) of Title 12: 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) Authorization of appropriations; revolving fund. There is authorized to be appropriated not to exceed $50,000,000 which shall constitute a revolving fund to be used by the Administrator in carrying out this section.

(e) Additional functions, powers and duties of Administrator.

In the performance of, and with respect to, the functions, powers, and duties vested in him by this section, the Administrator shall have (in addition to any authority otherwise vested in him) the functions, powers, and duties set forth in section 1749a of Title 12 (except subsection (c) (2)).

(f) Use of Federal or local public or private agency or organization as agent of Administrator. The Administrator is authorized to delegate to or use as his agent any Federal or local public or private agency or organization to the extent he determines appropriate and desirable to carry out the objectives of this section in the area involved.

(g) Rules and regulations; requirements and conditions.

The Administrator is authorized to issue such rules and regulations and impose such requirements and conditions (in addition to those specified in this section) as he determines to be desirable to carry out the objectives of this section, including limitations on the amount of a loan and restrictions on the use of the property involved. (Pub. L. 88-560, title III, § 312, Sept. 2, 1964, 78 Stat. 790.)

§ 1453. Grants for urban renewal projects. (a) Authorization; aggregate amount; limitation on grants for individual projects.

(1) The Administrator may make capital grants to local public agencies in accordance with the provisions of this subchapter for urban renewal projects: Provided, That the Administrator shall not make any contract for capital grant with respect to a project which consists of open land.

(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 subchapter 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

(B) three-fourths of the aggregate net project costs of any of such projects which are located in a municipality having a population of fifty thousand or less (one hundred fifty thousand or less in the case of a municipality situated in an 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 2504(a) of this title) according to the most recent decennial census, and

(C) three-fourths of the aggregate net project costs of any of such projects (not falling within subparagraph (B)) which the Administrator, 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) Limitation on aggregate amount of grants; authorization of appropriations; repayment of certain uncollectible loans.

The Administrator may, with the approval of the President, contract to make grants under this subchapter aggregating not to exceed $4,725,000,000: Provided, That of such sum the Administrator may, without regard to other provisions of this subchapter, contract to make grants aggregating not to exceed $25,000,000 for mass transportation dem