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it knowingly, then, we ought to keep the record straight and not say that local contribution is complete exemption from local taxes.

Mr. EGAN. I would be very glad to give you those detailed figures.
Mr. MONRONEY. I would like to have them put in the record.
Mr. EGAN. Very well.

Mr. MONRONEY. I think it is important.

Mr. EGAN. Very well.

Mr. BANTA. You mean the amount contributed to each locality in each of the 3 years?

Mr. MONRONEY. Yes.

Mr. BANTA. The amount of annual payments to each locality for each of the last 3 years, did you say?

Mr. MONRONEY. Yes, if that is satisfactory to the committee. If they want it for other years, it is agreeable with me. (The document referred to is as follows:)

PAYMENTS IN LIEU OF TAXES, 1945-47

The attached summary table shows all payments in lieu of taxes which have been made in the last three fiscal years on projects administered under the United States Housing Act which are in the management stage. Supplementary photostatic tables show details as to the amounts paid to the various localities in each year.

The tables also show the full taxes which would have been paid if the projects were subject to taxation, and the percent which the payments in lieu of taxes bear to full taxes. The local contributions shown are equal to the difference between full taxes and payments in lieu of taxes. Federal contributions paid in respect to the various years are also shown, together with the percent which local contributions bear to the Federal contributions.

On substantially all the Public Law 412 locally owned projects the local authorities made payments in lieu of taxes equal to 10 percent of shelter rents. Almost all of these projects have required Federal contributions to achieve low rents; these contributions, however, have declined from 8.7 million dollars in 1945 to 5.6 million dollars in 1947. As a result, the percentage which local contributions bear to Federal contributions has increased from 76 to 109 percent, or over five times the 20 percent required by statute.

Very few of the Public Law 671 locally owned projects have required Federal contributions. These projects were built under the defense amendment for war workers and are now being converted to low-rent use. The fact that little or no Federal contribution has been required on these projects has been due to (a) somewhat higher rents in relation to the income of the families still living in the projects and (b) the fact that the capital cost of these projects is still financed by temporary loan notes bearing very low rates of interest. Where a Federal contribution was required payments in lieu of taxes were limited to 10 percent of shelter rents. Where no annual contributions were required during the period of transition from defense to low-rent use, local housing authorities have been permitted to use net revenues (after payment of operating expense, interest and amortization) for payments in lieu of taxes, but not to exceed full taxes.

The Public Law 671 federally owned projects are also in process of conversion from defense to low-rent use. Payments in lieu of taxes have been made on these projects to the extent that revenues permitted after payment of all operating costs and interest and amortization on the PHA investment in the projects. Since these projects are federally owned, no Federal contributions are payable in respect to them.

PWA federally owned projects were built by the Public Works Agency and transferred by Presidential order in 1937 for administration under the United States Housing Act. These projects are devoted to low-rent use, and payments in lieu of taxes have accordingly been limited to 10 percent of shelter rents. Since these projects are federally owned no Federal contributions are paid in respect to them.

No payments in lieu of taxes have been made on the Public Law 412 projects in Ohio. These projects were developed by local authorities, but were taken over by PHA when the State supreme court ruled that they were not entitled to tax exemption while owned by the local authorities and so could not make the required local contributions. At the time they were taken over real property taxes had, according to the ruling of the State supreme court of Ohio, accrued and become payable. These past-due taxes were paid by the PHA in installments in the Federal fiscal years 1945-48. No payments in lieu of taxes have been made on these projects since they have been in Federal ownership.

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The information in the attached tables runs through the last complete fiscal year, that of 1947. For the Federal fiscal year 1948 the Government Corporations Appropriation Act, 1948, prohibited any payment of annual contributions occasioned by payments in lieu of taxes in excess of the amounts specified in the original contract between the local authority and the PHA. For the fiscal year 1948 the payments in lieu of taxes for projects requiring Federal contributions will, therefore, be very much reduced. The ratio of local contribution to Federal contribution will be correspondingly increased.

Summary of payments in lieu of taxes, local contributions and Federal contributions projects under U. S. Housing Act in management stage 1

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! This table does not cover Public Law 412 federally owned projects in Ohio, since no payments in lieu of taxes have been made on these projects. 2 Figures for locally owned projects relate to project fiscal years for which Federal contributions are payable in the respective Federal fiscal years shown.

47

2,099, 784

513, 514

24.5

47

2, 184, 749

540, 985

24.8

TABLE 1.-Public Law 412, locally owned projects

PART I. PROJECTS REQUIRING ANNUAL CONTRIBUTION PAYMENTS

Local fiscal year for which Federal contributions were paid in Federal fiscal year

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TABLE 1.-Public Law 412, locally owned projects-Continued

PART I. PROJECTS REQUIRING ANNUAL CONTRIBUTION PAYMENTS-Continued

Local fiscal year for which Federal contributions were paid in Federal fiscal year

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