(e) "Operating expenses" for any operating year shall mean the amounts, as approved by the Commissioner, necessary to meet the reasonable and proper costs of, and to provide for, operating and maintaining the housing project, and to establish and maintain reasonable and proper reserves for repairs, maintenance, and replacements, and other necessary reserves (including any required for sound operations on a cooperative basis) and shall include amortization and interest payments on the loan made hereunder, necessary expenses for real-estate taxes, special assessments, administrative expenses, and insurance charges, togetherwith such other expenses as the Commissioner shall determine to be necessary for the proper operation and maintenance of the housing project.

(f) "Net income" for any operating year shall mean gross income remaining after the payment of operating expenses.

(g) "State" includes the several States, the District of Columbia, and the Territories, dependencies, and possessions of the United States.

(h) "Rent" shall mean the monthly charges, to the members, in the case of a borrower of the character described in clause (1) of section 310 (a) hereof, or to the tenants, in the case of a borrower of the character described in clause (2) of section 310 (a) hereof, in consideration of which occupancy of a dwelling in a housing project is permitted by the borrower.

(i) "Going Federal rate” means the annual rate of interest (or; if there shall be two or more such rates of interest, the highest thereof) specified in the most recently issued bonds of the Federal Government having a maturity of ten years or more, determined at the date the contract for advance of funds or for loan is made. Any contract for loan made may be revised or superseded by a later contract, so that the going Federal rate, on the basis of which the interest rate on the loan is fixed, shall mean the going Federal rate, as herein defined, on the date that such contract is revised or superseded by such later contract.

TITLE IV-AMENDMENTS OF SERVICEMEN'S READJUSTMENT ACT OF 1944

SEC. 401. The Servicemen's Readjustment Act of 1944, as amended, is amended(a) By inserting "(a)" after "SEC. 501." and before the word “Any”, and by inserting at the end of section 501 the following new subsection:

"(b) Any loan made to a veteran under this title, the proceeds of which are to be used for purchasing residential property or constructing a dwelling to be occupied as his home may, notwithstanding the provisions of subsection (a) of· section 500 of this title relating to the percentage or aggregate amount of loan to be guaranteed, be guaranteed, if otherwise made pursuant to the provisions of this title, in an amount not exceeding sixty per centum of the loan: Provided, That the aggregate amount of any such loan guaranteed shall not exceed $7,500.” (b) By redesignating section 504 as section 504 (a) and by adding to that section a new subsection (b) reading:

"(b) No loan for the purchase or construction of residential property on which construction is begun subsequent to July 1, 1949, shall be financed through the assistance of the provisions of this title unless the property conforms to minimum construction requirements prescribed by the Administrator."

(c) By striking out all of subsection (a) of section 505 and by redesignating subsection (b) of said section 505 as "SEC. 505.": Provided, That this subsection shall become effective ninety days after the date of the approval of the Housing Amendments of 1949.

(d) By the addition of two new sections reading as follows:

"SUPPLEMENTAL DIRECT LOANS TO VETERANS

"SEC. 512. (a) If at any time subsequent to ninety days after the date of the approval of the Housing Amendments of 1949, the Administrator finds that because of the unavailability of private capital for the financing of the purchase of homes by veterans under the provisions of this title, the purposes of this title are not being accomplished, he shall take immediate steps to activate the provisions of this section for application in such area.

"(b) In any case in which a veteran, eligible under section 500 (a) of this title, as amended, has not previously availed himself of his guaranty entitlement and shows to the satisfaction of the Administrator that he is unable to obtain from private lending sources at an interest rate not in excess of 4 per centum per annum a loan for which he is qualified under section 501 of this title to finance the purchase or construction of a dwelling to be owned and occupied by him as a home,

the Administrator is authorized and directed to make, or enter into a commitment to make, such veteran a loan for such purpose, which loan shall bear interest at the rate of 4 per centum per annum and shall be subject to such requirements or limitations prescribed for loans guaranteed under this title as may be applicable: Provided, That

"(A) the original principal amount of any such loan shall not exceed $10,000;

"(B) the guaranty entitlement of the veteran shall be charged with the same amount that would be deducted if the loan had been guaranteed to the maximums permitted under section 500 (a) of this title;

"(C) the amount of loans made under this section shall not exceed $300,000,000; and

"(D) the authority to make loans under this section shall expire June 30,

1951.

"(c) In_connection with any loan under this section, the Administrator is authorized to make advances in cash to pay the taxes and assessments on the real estate, to provide for the purpose of making repairs, alterations, and improvements, and to meet the incidental expenses of the transaction, and shall credit to the principal of the loan an amount equal to that which would have been payable under section 500 (c) of this title had the loan been made by a private institution.

"(d) The Administrator is authorized to sell, and shall offer for sale, to any private lending institution evidencing ability to service loans, any loan made under this section at a price not less than par; that is, the unpaid balance plus accrued interest, and may guarantee any loan thus sold subject to the same conditions, terms, and limitations which would be applicable were the purchaser entitled to an automatic guaranty under section 500 (a) of this title.

"SEC. 513. (a) For the purposes of section 512 of this title, the Secretary of the Treasury is hereby authorized and directed to make available to the Administrator such sums, not in excess of $300,000,000, as the Administrator shall request from time to time except that no sums may be made available after June 30, 1951. After the last day on which the Administrator may make loans under that section, he shall cause to be deposited with the Treasurer of the United States, to the credit of miscellaneous receipts, that part of all sums in the special deposit account referred to in subsection (c) of this section, and all moneys received thereafter, representing unexpended advances or the repayment or recovery of the principal of loans made pursuant to section 512 of this title. Interest collected by the Administrator on loans made under section 512 in excess of the amount payable by him to the Treasurer of the United States under subsection (b) of this section, together with any miscellaneous income or credits, shall constitute a reserve for payment of losses, if any, and expenses incurred in the liquidation of said obligations. The Administrator shall have power to invest such reserves, or any unexpended part thereof, from time to time in obligations of the Government of the United States.

"(b) On advances by the Secretary of the Treasury under subsection (a) of this section, less those amounts deposited in miscellaneous receipts under subsections (a) and (c) hereof the Administrator shall pay semiannually to the Treasurer of the United States interest at the rate or rates 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 advance.

"(c) In order to make available the sums payable under subsection (a) of this section and to effectuate the purposes and functions authorized in section 512 of this title, the Secretary of the Treasury is hereby authorized to use, as a public-debt transaction, the proceeds of the sale of any securities issued under the Second Liberty Bond Act as now in force or as hereafter amended, and the purposes for which securities may be issued under the Second Liberty Bond Act as now in force or as hereafter amended, are hereby extended to include such purposes. Such sums, together with all receipts hereunder, shall be deposited with the Treasurer of the United States, in a special deposit account, and shall be available, respectively, for disbursement for the purposes of section 512 of this title. Except as otherwise provided in subsection (a) of this section, the Administrator shall from time to time cause to be deposited into the Treasury of the United States, to the credit of miscellaneous receipts, such of the funds in said account as in his judgment are not needed for the purposes for which they were provided, including the proceeds of the sale of any loans, and not later than June 30, 1952, he shall cause to be so deposited all sums in said account and all moneys received thereafter in

repayment of outstanding obligations, or otherwise, except so much thereof as he may determine to be necessary for purposes of liquidation. Without regard to any other provisions of this title, said Administrator shall have authority to take or cause to be taken such action as in his judgment may be necessary or appropriate for or in connection with the custody, management, protection, and realization or sale of such investments, to determine his necessary expenses and expenditures, and the manner in which the same shall be incurred, allowed, paid, and accounted for and audited, to make such rules, regulations, and orders as he may deem necessary or appropriate for the carrying out of the functions hereby or hereunder authorized and, except as otherwise expressly provided in this title, to employ, utilize, compensate, and delegate any of his functions hereunder to, sich persons and such corporate or other agencies, including agencies of the United States, as he may designate."

TITLE V-HOUSING FOR EDUCATIONAL INSTITUTIONS

FEDERAL LOANS

SEC. 501. (a) To assist educational institutions in providing housing for their students and faculties the Administrator may make loans of funds to such institutions for the construction of such housing: Provided, That no such loan shall be made unless the Administrator finds that the housing will be undertaken in such a manner that economy will be promoted in its construction, and that it will not be of elaborate or extravagant design or materials. Any educational institution which, prior to the date of enactment of this Act, has completed or contracted for housing may, in connection therewith, receive loans authorized under this title, as the Administrator may determine: Provided further, That no such loan shall be made for any housing, the construction of which was begun prior to February 3, 1949. A loan to an educational institution may be in an amount not exceeding the total development cost, as determined by the Administrator, of the housing; and shall bear interest at 21⁄2 per centum per annum; be secured in such manner; and be repaid within such period, not exceeding forty years, as may be determined by the Administrator.

(b) To obtain funds for loans under this title, 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 not to exceed $300,000,000.

(c) Notes or other obligations issued by the Administrator under this title 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 title 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.

(d) There are hereby authorized to be appropriated to the Administrator such sums as may be necessary, together with loan principal and interest payments made by educational institutions assisted hereunder, for payments on notes or other obligations issued by the Administrator under this section.

GENERAL PROVISIONS

SEC. 502. (a) In the performance of, and with respect to, the functions, powers, and duties vested in him by this title, the Administrator, notwithstanding the provisions of any other law, shall

(1) prepare annually and submit a budget program as provided for wholly owned Government corporations by the Government Corporation Control Act, as amended; and

(2) maintain an integral set of accounts which shall be audited annually by the General Accounting Office in accordance with the principles and pro94397-49-3

the Administrator is authorized and directed to make, or enter into a commitment to make, such veteran a loan for such purpose, which loan shall bear interest at the rate of 4 per centum per annum and shall be subject to such requirements or limitations prescribed for loans guaranteed under this title as may be applicable: Provided, That

"(A) the original principal amount of any such loan shall not exceed $10,000;

"(B) the guaranty entitlement of the veteran shall be charged with the same amount that would be deducted if the loan had been guaranteed to the maximums permitted under section 500 (a) of this title;

"(C) the amount of loans made under this section shall not exceed $300,000,000; and

(D) the authority to make loans under this section shall expire June 30,

1951.

"(c) In connection with any loan under this section, the Administrator is authorized to make advances in cash to pay the taxes and assessments on the real estate, to provide for the purpose of making repairs, alterations, and improvements, and to meet the incidental expenses of the transaction, and shall credit to the principal of the loan an amount equal to that which would have been payable under section 500 (c) of this title had the loan been made by a private institution.

"(d) The Administrator is authorized to sell, and shall offer for sale, to any private lending institution evidencing ability to service loans, any loan made under this section at a price not less than par; that is, the unpaid balance plus accrued interest, and may guarantee any loan thus sold subject to the same conditions, terms, and limitations which would be applicable were the purchaser entitled to an automatic guaranty under section 500 (a) of this title.

"SEC. 513. (a) For the purposes of section 512 of this title, the Secretary of the Treasury is hereby authorized and directed to make available to the Administrator such sums, not in excess of $300,000,000, as the Administrator shall request from time to time except that no sums may be made available after June 30, 1951. After the last day on which the Administrator may make loans under that section, he shall cause to be deposited with the Treasurer of the United States, to the credit of miscellaneous receipts, that part of all sums in the special deposit account referred to in subsection (c) of this section, and all moneys received thereafter, representing unexpended advances or the repayment or recovery of the principal of loans made pursuant to section 512 of this title. Interest collected by the Administrator on loans made under section 512 in excess of the amount payable by him to the Treasurer of the United States under subsection (b) of this section, together with any miscellaneous income or credits, shall constitute a reserve for payment of losses, if any, and expenses incurred in the liquidation of said obligations. The Administrator shall have power to invest such reserves, or any unexpended part thereof, from time to time in obligations of the Government of the United States.

"(b) On advances by the Secretary of the Treasury under subsection (a) of this section, less those amounts deposited in miscellaneous receipts under subsections (a) and (c) hereof the Administrator shall pay semiannually to the Treasurer of the United States interest at the rate or rates 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 advance.

"(c) In order to make available the sums payable under subsection (a) of this section and to effectuate the purposes and functions authorized in section 512 of this title, the Secretary of the Treasury is hereby authorized to use, as a public-debt transaction, the proceeds of the sale of any securities issued under the Second Liberty Bond Act as now in force or as hereafter amended, and the purposes for which securities may be issued under the Second Liberty Bond Act as now in force or as hereafter amended, are hereby extended to include such purposes. Such sums, together with all receipts hereunder, shall be deposited with the Treasurer of the United States, in a special deposit account, and shall be available, respectively, for disbursement for the purposes of section 512 of this title. Except as otherwise provided in subsection (a) of this section, the Administrator shall from time to time cause to be deposited into the Treasury of the United States, to the credit of miscellaneous receipts, such of the funds in said account as in his judgment are not needed for the purposes for which they were provided, including the proceeds of the sale of any loans, and not later than June 30, 1952, he shall cause to be so deposited all sums in said account and all moneys received thereafter in

repayment of outstanding obligations, or otherwise, except so much thereof as he may determine to be necessary for purposes of liquidation. Without regard to any other provisions of this title, said Administrator shall have authority to take or cause to be taken such action as in his judgment may be necessary or appropriate for or in connection with the custody, management, protection, and realization or sale of such investments, to determine his necessary expenses and expenditures, and the manner in which the same shall be incurred, allowed, paid, and accounted for and audited, to make such rules, regulations, and orders as he may deem necessary or appropriate for the carrying out of the functions hereby or hereunder authorized and, except as otherwise expressly provided in this title, to employ, utilize, compensate, and delegate any of his functions hereunder to, such persons and such corporate or other agencies, including agencies of the United States, as he may designate."

TITLE V-HOUSING FOR EDUCATIONAL INSTITUTIONS

FEDERAL LOANS

SEC. 501. (a) To assist educational institutions in providing housing for their students and faculties the Administrator may make loans of funds to such institutions for the construction of such housing: Provided, That no such loan shall be made unless the Administrator finds that the housing will be undertaken in such a manner that economy will be promoted in its construction, and that it will not be of elaborate or extravagant design or materials. Any educational institution which, prior to the date of enactment of this Act, has completed or contracted for housing may, in connection therewith, receive loans authorized under this title, as the Administrator may determine: Provided further, That no such loan shall be made for any housing, the construction of which was begun prior to February 3, 1949. A loan to an educational institution may be in an amount not exceeding the total development cost, as determined by the Administrator, of the housing; and shall bear interest at 22 per centum per annum; be secured in such manner; and be repaid within such period, not exceeding forty years, as may be determined by the Administrator.

(b) To obtain funds for loans under this title, 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 not to exceed $300,000,000.

(c) Notes or other obligations issued by the Administrator under this title 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 title 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.

(d) There are hereby authorized to be appropriated to the Administrator such sums as may be necessary, together with loan principal and interest payments made by educational institutions assisted hereunder, for payments on notes or other obligations issued by the Administrator under this section.

GENERAL PROVISIONS

SEC. 502. (a) In the performance of, and with respect to, the functions, powers, and duties vested in him by this title, the Administrator, notwithstanding the provisions of any other law, shall

(1) prepare annually and submit a budget program as provided for wholly owned Government corporations by the Government Corporation Control Act, as amended; and

(2) maintain an integral set of accounts which shall be audited annually by the General Accounting Office in accordance with the principles and pro

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