as certified by the Public Housing Commissioner: Provided further, That the record of expenditure of the Public Housing Administration and of the local housing authority on any public housing project shall be open to examination by the responsible authorities of any community in which such project is located, or by the local public housing authority, or by any firm of public accountants retained by either of the foregoing: Provided further,1 That no housing unit constructed under the United States Housing Act of 1937, as amended, shall be occupied by a person who is a member of an organization designated as subversive by the Attorney General: Provided further, That the foregoing prohibition shall be enforced by the local housing authority, and that such prohibition shall not impair or affect the powers or obligations of the Public Housing Administration with respect to the making of loans and annual contributions under the United States Housing Act of 1937, as amended.2

Approved July 31, 1953.

LOW-INCOME HOUSING DEMONSTRATIONS

EXCERPT FROM HOUSING ACT OF 1961

[Public Law 87-70, 75 Stat. 149, 165; 42 U.S.C. 1436]

DEMONSTRATION PROGRAMS

SEC. 207. The Secretary of Housing and Urban Development is authorized to enter into contracts to make grants, not exceeding $15,000,000,3 to public or private bodies or agencies, subject to such terms and conditions as he shall prescribe, for the purposes of developing and demonstrating new or improved means, including the study of self-help in the construction, rehabilitation, and maintenance of housing for low-income persons and families and the methods of selecting, involving, and directing such persons and families in selfhelp activities, of providing housing for low income persons and families, and of demonstrating the types of housing and the means of

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1 The so-called "Gwinn amendment." The Attorney General of the United States on April 26, 1956, held that the "Gwinn amendment" had expired.

Sec. 505(b), Housing Act of 1959, Public Law 86-372, approved September 23, 1959, 73 Stat. 654, 681, repealed a final proviso which read as follows:

"Provided further, That notwithstanding the provisions of the United States Housing Act of 1937, as amended, the Public Housing Administration shall not, with respect to projects initiated after March 1, 1949, (1) authorize during the fiscal year 1954 the commencement of construction of in excess of twenty thousand dwelling units or (2) after the date of approval of this Act, enter into any new agreements, contracts, or other arrangements, preliminary or otherwise, which will ultimately bind the Public Housing Administration during fiscal year 1954 or for any future years with respect to loans or annual contributions for any additional dwelling units or projects unless hereafter authorized by the Congress to do so, and during the fiscal year 1954 the Housing and Home Finance Administrator shall make a complete analysis and study of the low-rent public housing program and, on or before February 1, 1954, shall transmit to the Appropriations Committees of the House and Senate his recommendations with respect to such low-rent public housing program."

3 Sec. 407, Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 796, substituted "$10,000,000" for $5,000,000", and sec. 1105, Housing and Urban Development Act of 1965, Public Law 89-117, approved August 10, 1965, 79 Stat. 451, 503, substituted "$15,000,000" for "$10,000,000".

Sec. 1714(a), Housing and Urban Development Act of 1968, Public Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 607, added the language on self-help.

Sec. 1714(b) of the 1968 Act provided that the Secretary of HUD should make a report to the Congress within one year after the date of enactment of the 1968 Act, setting forth the results of the self-help studies and demonstrations carried out under the new provisions of sec. 207, together with such recommendations as he deemed appropriate.

Sec. 203 (e), Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 784, added the remainder of this sentence.

44-023 0-70- 18

providing housing that will assist low income persons or families who qualify as handicapped families as defined in section 202 of the Housing Act of 1959. Advances and progress payments may be made, under any contract to make grants under this section, without regard to the provisions of section 3648 of the Revised Statutes.

Approved June 30, 1961.

RENT SUPPLEMENTS

EXCERPTS, HOUSING AND URBAN DEVELOPMENT ACT OF 1965

[Public Law 89-117, 79 Stat. 451, 12 U.S.C. 1701s]

TITLE I-SPECIAL PROVISIONS FOR DISADVANTAGED PERSONS

FINANCIAL ASSISTANCE TO ENABLE CERTAIN PRIVATE HOUSING TO BE AVAILABLE FOR LOWER INCOME FAMILIES WHO ARE ELDERLY, HANDICAPPED, DISPLACED, VICTIMS OF A NATURAL DISASTER, OR OCCUPANTS OF SUBSTANDARD HOUSING

SEC. 101. (a) The Secretary of Housing and Urban Development (hereinafter referred to as the "Secretary") is authorized to make, and contract to make, annual payments to a "housing owner" on behalf of "qualified tenants", as those terms are defined herein, in such amounts and under such circumstances as are prescribed in or pursuant to this section. In no case shall a contract provide for such payments with respect to any housing for a period exceeding forty years. The aggregate amount of the contracts to make such payments shall not exceed amounts approved in appropriation Acts and payments pursuant to such contracts shall not exceed $150,000,000 per annum prior to July 1, 1969, which maximum dollar amount shall be increased by $40,000,000, on July 1, 1969, and by $100,000,000 on July 1, 1970.

1 The Supplemental Appropriation Act, 1966, Public Law 89-309, approved Oct. 31, 1965, 79 Stat. 1133, 1135, provided no funds for rent supplement payments or authorization for rent supplement contracts, but appropriated $450,000 to FHA and $300,000 to the Housing Administrator to prepare plans for implementing the rent supplement program and for making studies and market surveys in connection with the program.

The Second Supplemental Appropriation Act, 1966, Public Law 89-426, approved May 13, 1966, 80 Stat. 141, 143, appropriated $100,000 for rent supplement payments and authorized contracts for rent supplement payments aggregating up to $12,000,000 per year. The act provided further that no part of the appropriation or contract authority could be used for incurring any obligation in connection with any dwelling unit or project which is not either part of a workable program for community improvement, or which is without local official approval for participation in the rent supplement program.

The Independent Offices Appropriation Act, 1967, Public Law 89-555 approved September 6, 1966, 80 Stat. 663, appropriated $2,000,000 for rent supplement payments and increased by $20,000,000 the limit on the amount of annual rent supplement payments that can be contracted for. This act also contained the same requirements with respect to the workable program or local official approval as was contained in the Second Supplemental Appropriation Act, 1966, supra.

The Independent Office and Department of Housing and Urban Development Appropriation Act, 1968, Public Law 90-121, approved November 3, 1967, 81 Stat. 341, 356, increased by $10,000,000 the limit of the amount of annual rent supplement payments that can be contracted for, and appropriated $5,000,000 for payments. This act also contained the same requirements with respect to the workable program or local official approval as was contained in the Second Supplemental Appropriation Act, 1966, supra. The Independent Offices and Department of Housing and Urban Development Act, 1969, Public Law 90-550, Oct. 4, 1968, 82 Stat. 937, 952, increased by $30 million the limit on the amount of annual rent supplement payments that can be contracted for, and repeated previous appropriation act provisions requiring workable program or local official approval for participation in the program.

Sec. 202 (a), Housing and Urban Development Act of 1968, Public Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 503, added the provisions for a $40 million increase on July 1,1969, and a $100 million increase on July 1, 1970.

(b) As used in this section, the term "housing owner" means a private nonprofit corporation or other private nonprofit legal entity, a limited dividend corporation or other limited dividend legal entity, or a cooperative housing corporation, which is a mortgagor under section 221 (d) (3) of the National Housing Act and which, after the enactment of this section, has been approved for mortgage insurance thereunder and has been approved for receiving the benefits of this section: Provided, That, except as provided in subsection (j), no payments under this section may be made with respect to any property financed with a mortgage receiving the benefits of the interest rate provided for in the proviso in section 221 (d) (5) of that Act. Such 1 term also includes a private nonprofit corporation or other private nonprofit legal entity, a limited dividend corporation or other limited dividend legal entity, or a cooperative housing corporation, which is the owner of a rental or cooperative housing project financed under a State or local program providing assistance through loans, loan insurance, or tax abatement and which prior to completion of construction or rehabilitation is approved for receiving the benefits of this section. Subject to the limitations provided in subsection (j), the term "housing owner" also has the meaning prescribed in such

subsection.

(c) As used in this section, the term "qualified tenant" means any individual or family who has, pursuant to criteria and procedures established by the Secretary, been determined—

(1) to have an income below the maximum amount which can be established in the area, pursuant to the limitations prescribed in sections 2(2) and 15(7)(b)(ii) of the United States Housing Act of 1937, for occupancy in public housing dwellings; and (2) to be one of the following—

(A) displaced by governmental action;

(B) sixty-two years of age or older (or, in the case of a family to have a head who is, or whose spouse is, sixty-two years of age or over);

(C) physically handicapped (or in the case of a family, to have a head who is, or whose spouse is, physically handicapped);

(D) occupying substandard housing; or

(E) an occupant or former occupant of a dwelling which is (or was) situated in an area determined by the Small Business Administration, subsequent to April 1, 1965, to have been affected by a disaster, and which has been extensively damaged or destroyed as the result of such disaster.

The terms "qualified tenant" and "tenant" including a member of a cooperative who satisfies the foregoing requirements and who, upon resale of his membership to the cooperative, will not be reimbursed for any equity increment accumulated through payments under this section. With respect to members of a cooperative, the terms "rental" and "rental charges" mean the charges under the occupancy agreements between such members and the cooperative.

1 Sec. 202 (b), Housing and Urban Development Act of 1968, Public Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 503, added this sentence.

Sec. 1106(b), Housing and Urban Development Act of 1968, Public Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 567, substituted "disaster" for "natural disaster".

(d) The amount of the annual payment with respect to any dwelling unit shall not exceed the amount by which the fair market rental for such unit exceeds one-fourth of the tenant's income as determined by the Secretary pursuant to procedures and regulations established by him. In determining the income of any tenant for the purposes of this section, there shall be deducted an amount equal to $300 for each minor person who is a member of the immediate family of such tenant and living with such tenant, and the earnings of any such minor person shall not be included in the income of such tenant.

(e) (1) For purposes of carrying out the provisions of this section, the Secretary shall establish criteria and procedures for determining the eligibility of occupants and rental charges, including criteria and procedures with respect to periodic review of tenant incomes and periodic adjustment of rental charges. The Secretary shall issue, upon the request of a housing owner, certificates as to the following facts concerning the individuals and families applying for admission to, or residing in, dwelling of such owner:

(A) the income of the individual or family; and

(B) whether the individual or family was displaced by governmental action, is elderly, is physically handicapped, or is (or was) occupying substandard housing or housing extensively damaged or destroyed as the result of a natural disaster.

(2) Procedures adopted by the Secretary hereunder shall provide for recertifications of the incomes of occupants, except the elderly, at intervals of two years (or at shorter intervals in cases where the Secretary may deem it desirable) for the purpose of adjusting rental charges and annual payments on the basis of occupants' incomes, but in no event shall rental charges adjusted under this section for any dwelling exceed the fair market rental of the dwelling.

(3) The Secretary may enter into agreements, or authorize housing owners to enter into agreements, with public or private agencies for services required in the selection of qualified tenants, including those who may be approved, on the basis of the probability of future increases in their incomes, as lessees under an option to purchase (which will give such approved qualified tenants an exclusive right to purchase at a price established or determined as provided in the option) dwellings, and in the establishment of rentals. The Secretary is authorized (without limiting his authority under any other provision of law) to delegate to any such public or private agency his authority to issue certificates pursuant to this subsection.

(4) No payments under this section may be made with respect to any property for which the costs of operation (including wages and salaries) are determined by the Secretary to be greater than similar costs of operation of similar housing in the community where the property is situated.

1 Sec. 201 (e), Housing and Urban Development Act of 1968, Public Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 502, added this sentence.

2 Subsec. (f) amended sec. 101 (c) of the Housing Act of 1949 to provide that the requirement that the community must have a workable program for community improvement before the housing is eligible for FHA mortgage insurance does not apply in the case of housing to be used under the rent supplement program, unless the workable program was previously required and in effect in the community for purposes of Federal assistance to code enforcement, urban renewal, or public housing. However, the Second Supplemental Appropriation Act, 1966, Public Law 89-426, 80 Stat. 141, and subsequent appropriation acts provide that no part of the rent supplément contract authority contained in those

(g) The Secretary is authorized to make such rules and regulations, to enter into such agreements, and to adopt such procedures as he may deem necessary or desirable to carry out the provisions of this section. Nothing contained in this section shall affect the authority of the Secretary of Housing and Urban Development with respect to any housing assisted under this section, section 221 (d) (3), section 231(c)(3), or section 2361 of the National Housing Act, or section 202 of the Housing Act of 1959, including the authority to prescribe occupancy requirements under other provisions of law or to determine the portion of any such housing which may be occupied by qualified

tenants.

(h) There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this section, including, but not limited to, such sums as may be necessary to make annual payments as prescribed in this section, pay for services provided under (or pursuant to agreements entered into under) subsection (e), and provide administrative expenses.

(i) 2

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(1) For the purpose of assisting housing under this section on an experimental basis, subject to the limitations of this subsection, the term "housing owner" (in addition to the meaning prescribed in subsection (b)) includes

(A) a private nonprofit corporation or other private nonprofit legal entity, a limited dividend corporation or other limited dividend legal entity, or a cooperative housing corporation, which is a mortgagor under a mortgage which receives the benefits of the interest rate provided for in the proviso in section 221 (d) (5) of the National Housing Act and which, after the date of the enactment of this Act, has been approved for mortgage insurance under section 221(d) (3) of the National Housing Act and has been approved for receiving the benefits of this section;

(B) a private nonprofit corporation or other private nonprofit legal entity which is a mortgagor under a mortgage insured under section 231(c)(3) of the National Housing Act and which, after the date of the enactment of this Act, has obtained final endorsement of such mortgage for mortgage insurance and has been approved for receiving the benefits of this section;

(C) a private nonprofit corporation, a public body or agency, or a cooperative housing corporation. which is a borrower under section 202 of the Housing Act of 1959 and has been approved for receiving the benefits of this section: Provided, That, with respect to properties financed with loans under such section made on or before the date of the enactment of this Act, payments shall not be made with respect to more than 20 per centum of the dwelling units in any property so financed; and

laws may be used for incurring any obligation in connection with any dwelling unit or project which is not either part of a workable program for community improvement, or which is without local official approval for participation in the rent supplement program. 1 Sec. 201 (e) (2), Housing and Urban Development Act of 1968, Public Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 502, added "or section 236".

2 Subsec. (1) amended sec. 114(c) (2) of the Housing Act of 1949 to provide that a displaced person or family who obtains a dwelling unit with the assistance of a rent supplement will not be entitled to receive a relocation adjustment payment, although he may, if otherwise eligible, receive a payment for moving expenses.

3 Housing for the elderly or handicapped.