(b) California: A redevelopment agency is authorized to encumber any of its property by mortgage, deed of trust, or otherwise. (c) Colorado: The property of a rehabilitation authority may be mortgaged. (d) Connecticut: No reference is made to the mortgaging of property by a redevelopment agency, but it may, in order to secure financial aid from the Federal Government, obligate itself in any contract to convey to the Federal Government the project to which such contract relates upon the occurrence of a substantial default. (e) Illinois: No specific statutory reference, but may be affected by the "Housing Authorities Act," approved May 8, 1945. (f) Indiana: No specific statutory reference. Pennsylvania: An authority is authorized to mortgage all or any part of its real or personal property then owned or thereafter acquired to secure payment of its bonds or other obligations. (k) Wisconsin: No express reference is made to mortgages, but a city "may do all things necessary to comply with the conditions attached" to grants or loans from the Federal, State, or county governments. 4. Development of site (a) Alabama: A redevelopment agency is authorized to assemble and to clear the land within a redevelopment area, retaining such buildings which have a useful life as may fit into the plan, and to grade and drain the area, install streets, sidewalks, gutters, etc., "and utilities in conformity with the plan.' (b) California: A redevelopment agency is authorized to develop as a building site or sites any real property owned or acquired by it, or to cause streets to be laid out, graded, and paved, and public utilities of every kind to be constructed and installed. (c) Colorado: A rehabilitation authority may be authorized to remove or cause to be removed some or all of the existing structures in an area, to vacate existing plats of the area and to replat the same, and to provide streets, plavgrounds, parks, and other needful public improvements. (d) Connecticut: A redevelopment agency is authorized to clear property which it acquires and make site improvements essential to preparation for its use in accordance with the redevelopment plan. (e) Illinois: The statute states that the funds granted may be applied to any "purposes necessary for clearance of slum and blight areas." (f) Indiana: The commissioners are authorized to clear and replan the area, to arrange for needed improvements thereof, and contracts for clearance may provide that the contractor shall be entitled to retain and dispose of salvaged material as a part of the contract price or on the basis of stated prices for the amounts of materials actually salvaged. (g) Maryland: The statute states that the commission may accept loans or grants of money "for the acquisition of land and improvements comprising any redevelopment area.' (h) Michigan: The statute refers to action by the municipality with respect to "the acquisition and clearance of land in a redevelopment area reserved for private uses. (1) New York: The "clearance" of substandard and insanitary areas is authorized. () Pennsylvania: An authority is authorized to assemble, clear, and improve any real property acquired by it for redevelopment purposes. (k) Wisconsin: Planning commissions are authorized, with the approval of the local legislative bodies, to have demolished existing structures or to clear the area, or to specify the demolition and clearance to be performed by a lessee or purchaser; also, to facilitate disposition of a project area a city has "power to include in the cost payable by it the cost of the construction of local streets and sidewalks within the area or of grading and other local public surface or subsurface facilities necessary for shaping the area as the site of the redevelopment of the area." 5. Control of land reuse (a) Alabama: The sale of property by a redevelopment agency shall be subject to covenants of use in accordance with the redevelopment plan and such covenants are to run with the land. (b) California: A redevelopment agency is authorized to obligate lessees or purchasers of land acquired by it in a redevelopment project (1) to use such land for the purposes designated in the redevelopment plan; (2) to begin the redevelopment within a specified reasonable time; and (3) to comply with such other conditions as are deemed necessary by the redevelopment agency in order to carry out the purposes of the statute. By contract the agency may make any of the purchaser's obligations, covenants, or conditions running with the land, whose breach shall cause the fee to revert to the agency. The statute provides that nothing contained in it "shall authorize such redevelopment agency to construct any of the buildings for residential, commercial, industrial, or other use contemplated by the redevelopment plan, or to acquire, without the consent of the owner, any real property on which buildings are located, where such buildings at to be continued in their present form and use under the redevelopment plan.' (b) Colorado: The statute provides that it shall be the duty of an authority to keep informed as to the performance of any reconstruction agency of its obligations in the redevelopment of an area, and that the authority shall take any legal or other action deemed advisable in case the reconstruction agency shall fail in the performance of its obligations. (d) Connecticut: The statute provides that each contract for the sale or lease to a redeveloper shall provide, among other things, that the property shall be developed and used in accordance with the redevelopment plan, that all transfers of properties by the redeveloper shall be subject to the consent of the redevelopment agency. Any such contract may provide, among other things, (a) that the properties shall be maintained in accordance with the redevelopment plan; (b) that the redevelopment agency shall have the right of inspection; and (c) that the redeveloper, as security for its fulfilment of the contract, shall make a cash deposit or give a bond or other guaranty as may be deemed necessary by the redevelopment agency. (e) Illinois: See provisions of the laws applicable to lessees or grantees enumerated under 1, supra, of this section IX. (f) Indiana: The statute provides that property acquired may be disposed of "on such terms and conditions as the commissioners shall determine to be for the best interests of the city and its inhabitants." (g) Maryland: The redevelopment commission shall require in any sale or lease of land to any private person, firm, or corporation appropriate covenants and restrictions to maintain the standards of population density, property mainte nance, type of land use and other standards established in the act, and such cove nants and restrictions shall be made binding on subsequent transferees, purchasers, lessees, or other successors in interest. (h) Michigan: It is provided in the statute that the sale, lease, or exchange of property "shall be under terms and conditions fixed by the local legislative body and shall contain provisions that the development plan for the property shall be carried out." (i) New York: Under the terms of the statute the property acquired will be used by the municipality for the rehabilitation of substandard and insanitary areas, together with adequate provision for recreational and other facilities appurtenant thereto. (j) Pennsylvania: The statute provides that the contract between the authority and the redeveloper shall contain a statement of such continuing controls, which shall run with the land, as may be deemed necessary to effectuate the purposes of the statute, including a prohibition against discrimination in the use, sale, or lease of any property against any person because of race, color, religion, or national origin. (k) Wisconsin: Every lease or sale instrument shall provide that the lessee or purchaser shall carry out or cause to be carried out the approved project ares redevelopment plan, and that no use shall be made of any land or real property involved which does not conform to the approved plan. Such instruments may include such other terms, conditions and provisions as are deemed necessary to assure conformance to the plan, including obligations of conformance with the plan which shall run with the land. In the event that maximum rentals to be charged to tenants of housing be specified, provision may be made for periodie reconsideration of such rental bases. A purchaser shall have no power to convey property without the consent and approval of the planning commission and the local legislative body, and no consent shall be given unless the grantee obligates itself or himself, including successors in interest, to carry out the provisions of the plan. No lien or other interest shall be placed upon any real property in an ares by a lessee or purchaser to secure any indebtedness or obligation. 6. Control of rents (a) Alabama: The statute provides that it shall be unlawful for any person, firm, or corporation purchasing from a redevelopment agency any land for housing project purposes to rent any dwelling accommodations contained therein to any person "whose gross annual income exceeds $1,500." (b) California: No specific statutory reference. (e) Illinois: No specific statutory reference, but see provisions of the law applicable to lessees or grantees enumerated under 1, supra, of this section IX; also, provisions of the "Housing Authorities Act" relating to rents of low-income persons. (f) Indiana: No specific reference is made to rents other than that the commissioners in offering property for sale or lease shall consider "proposed sale or rental prices" of the lessees or purchasers, including any factors which will assure the carrying out of the redevelopment plan. (g) Maryland: No specific statutory reference. (h) Michigan: No specific statutory reference. (1) New York: No specific statutory reference. Pennsylvania: The statute makes no specific reference to rents, but states that the contract with the developer shall contain such controls as may be deemed necessary to carry out the purposes of the statute. (k) Wisconsin: In the event that maximum rentals to be charged to tenants of housing are specified in lease or sale agreements, provision may be made for periodic reconsideration of such rental bases. Redevelopment plans may specify maximum rentals of any housing proposed to be provided. 7. Investment of funds (a) Alabama: A redevelopment agency may invest any of its funds not required for immediate disbursement in property or facilities in which savings banks may legally invest funds subject to their control. (b) California: A redevelopment agency may invest any of its funds in property or facilities in which savings banks may legally invest, and may purchase its bonds at a price not more than the principal amount thereof and accrued interest. (c) Colorado: No specific statutory reference. (d) Connecticut: No specific statutory reference. (e) Illinois: See Housing Authorities Act, approved May 8, 1945. However, the statute provides that "no housing authority nor land clearance commission shall reinvest or use any funds arising from the rental, sale or exchange of any property acquired with funds appropriated under this act except with the approval of the State housing board." (f) Indiana: No specific statutory reference. (Pennsylvania: An authority may invest its funds in such investments as may be lawful for executors, administrators, guardians, trustees, and other fiduciaries under the laws of the Commonwealth. (k) Wisconsin: No specific statutory reference. X. PROVISION FOR DISPLACED PERSONS (a) Alabama: The statute provides that in planning an area for redevelopment "there shall be no obligation upon the agency to provide equivalent housing or any housing for persons formerly residing in such area." (b) California: If the redevelopment plan provides for the displacement of any occupants of housing facilities in the area, the legislative body shall not approve it except upon the finding that adequate housing facilities are or will be made available in the community for such displaced occupants at rents comparable to those existing at the time of their displacement. The legislative body shall further be satisfied that, with respect to permanent housing facilities, other such facilities shall be made available within 3 years from the time such occupants shall be displaced and that temporary housing facilities will be made available at the time of their displacement. If persons of low income (as defined in the housing authority law) are displaced, the legislative body shall, prior to its approval of the plan, obtain and consider the recommendations of the housing authority, if any, with respect to the availability and provision of adequate housing for such persons. (c) Colorado: No specific statutory reference. (d) Connecticut: The statute states that a redevelopment agency may approve a redevelopment plan if it finds, among other things, "sufficient living accommodations are available within a reasonable distance of such area or are provided for in the redevelopment plan for families displaced by the proposed improvement, at prices or rentals within the financial reach of such families." (e) Illinois: No specific statutory reference. (f) Indiana: The statute provides that in determining the location and extent of blighted areas proposed to be acquired, the commissioners and the plan commission "shall give consideration to transitional and permanent provisions for adequate housing" for displaced residents. (9) Maryland: No specific statutory reference. * * (h) Michigan: The statute reads: "No resident-owner in a development area shall be dispossessed after condemnation * * * until other adequate housing accommodations are provided It also provides that a redevelopment plan shall designate "provision for the relocation of the people living in the area. (i) New York: No specific statutory reference. (3) Pennsylvania: The statute provides that a redevelopment area plan shall contain a statement of the extent and effect of the rehousing of families which may be made necessary by the redevelopment and the manner in which such rehousing may be accomplished; that the governing body shall not approve a redevelopment proposal unless it is satisfied that adequate provisions will be made to rehouse displaced families without undue hardship; and that the Authority may reimburse displaced occupants for their reasonable expenses of removal. (k) Wisconsin: The statute provides that in connection with every redevelopment plan the housing authority shall formulate a feasible method for the temporary relocation of displaced persons, and, in addition, the housing authority and the local legislative body "will assure that decent, safe and sanitary dwellings substantially equal in number to the number of substandard dwellings to be removed" are available, or will be provided at rents or prices within the financial reach of the income groups displaced. XI. ELIGIBILITY OF OBLIGATIONS OF REDEVELOPMENT AGENCIES FOR PRIVATE AND PUBLIC INVESTMENT (a) Alabama: The statute authorizes all persons, firms, corporations, associations, political subdivisions, bodies, and officers, public or private, to use any fund owned or controlled by them, including (but not limited to) sinking funds, insurance, investment, retirement, compensation, pension and trust funds, and funds held on deposit, for the purchase of any bonds or other obligations of a redevelopment agency. (b) California: The statute authorizes all persons, firms, corporations, associations, political subdivisions, bodies, and officers, public or private, to use any funds owned or controlled by them, including (but not limited to) sinking funds, insurance, investment, retirement, compensation, pension and trust funds, and funds held on deposit, for the purchase of any bonds or other obligations of a redevelopment agency. (c) Colorado: No specific statutory reference. (d) Connecticut: No specific statutory reference. (h) Michigan: No specific statutory reference. (i) New York: No specific statutory reference. Pennsylvania: The statute does not set forth any list of funds eligible for investment in obligations of an authority, but bonds are declared to have all the qualities of negotiable instruments. (k) Wisconsin: No specific statutory reference. PART III COMPARATIVE ANALYSIS OF PRINCIPAL PROVISIONS OF STATE LEGISLATION RELATING TO URBAN REDEVELOPMENT BY LOCAL HOUSING AUTHORITIES 10 Four States-Arkansas, Florida, Illinois, and Tennessee-have passed legislation " designating local housing authorities as the local public body to engage in urban redevelopment activities.12 The Illinois statute merely amends the eminent domain section of the Housing Authorities Act by providing that the power of eminent domain shall apply not only to improved or unimproved property which may be acquired for or as incident to the development or operation of a project or projects, but also to any improved or unimproved property the acquisition of which is necessary or appropriate for the rehabilitation or redevelopment of any blighted or slum area. defining such an area, the statute states that it must be "an area of not less in the aggregate than 2 acres which has been designated by municipal ordinance or by the authority as an integrated project for rehabilitation or redevelopment." In The amendment further provides that a housing authority "shall have power to hold or use any such property for uses authorized by this act, or to sell, lease, or exchange such property as is not required for such uses by the authority." The statutes of Arkansas, Florida, and Tennessee are identical in providing that General powers.—Any housing authority now or hereafter established pursuant to the State housing laws may carry out redevelopment projects (1) to acquire blighted areas; (2) to acquire other real property for the purpose of removing, preventing, or reducing blight, blighting factors or the causes of blight, and where the acquisition of the area is necessary to carry out a redevelopment plan; (3) to clear any areas acquired and install, construct, or reconstruct streets, utilities, and site improvements essential to the preparation of sites for uses in accordance with redevelopment plans; (4) to sell or lease land so acquired for uses in connection with the redevelopment plan; or (5) to accomplish a combination of the foregoing to carry out a redevelopment plan. In undertaking such redevelopment projects, a housing authority shall have all the rights, powers, privileges, and immunities that such authority has under the State housing laws relating to slum clearance and housing projects for persons of low income (including, without limiting the generality of the foregoing, the power to make and execute contracts, to issue debentures and give security therefor, to acquire real property by eminent domain or purchase, and to do any and all things necessary to carry out projects) in the same manner as though all provisions of the State housing laws applicable to slum clearance and housing projects were applicable to redevelopment projects undertaken under these statutes; provided, that nothing contained in the housing laws shall be constructed as limiting the general power of an authority, in the event of a default by a purchaser or lessee of land in a redevelopment area, to acquire property and operate it free from restrictions with respect to tenant selection and operation for profit. Redevelopment plan.-No redevelopment project shall be initiated until the governing body in which areas to be redeveloped are situated has approved a redevelopment plan which provides an outline for the development or redevelopment of the area and is sufficiently complete (1) to indicate its relationship to definite local objectives as to appropriate land uses and improved traffic, transportation, public services, recreational and community facilities, and other public improvements; (2) to indicate proposed land uses and building requirements; and (3) to indicate the method for the temporary relocation of persons living in such areas; and also the method of providing (unless already available) decent, safe, and sanitary dwellings substantially equal in number to the number of substandard dwellings to be cleared from the area, at rents within the financial reach of the income groups displaced from such substandard dwellings. Re-use value of land.-Land in a redevelopment project may be made available by a housing authority for use by private enterprise or public agencies at its reuse value, which represents the value (whether expressed in terms of rental or capital price) at which the authority determines such land should be made available in 19 Since the statutes in this part relate to public-housing authorities, they should be read in connection with the State housing enabling acts under or by which such authorities are created. "Arkansas: Act No. 212 of 1945; Florida: Ch. 23077, Florida Statutes of 1945; Illinois: Senate bill No. 204, Laws of 1945; and Tennessee: Public Acts of 1945, ch. 114. See, also, the statutes of Connecticut, Illinois, and Wisconsin referred to in pt. II which also authorize public-housing authorities, among other public bodies and agencies, to undertake redevelopment projects under the scheme there set forth. |