Housing

farming operatio

ings for the need0,000 on or after the 1st day of July 1951. The notes and other obligations of a loan or gram from the payment of principal and interest on the obligations of the borwith the process and from funds appropriated hereunder. The notes and other obligaion for direissued by the Secretary shall be in such forms and denominations, shall cupancy age such maturities, and shall be subject to such terms and conditions as may age without Described by the Secretary with the approval of the Secretary of the Treasury. us title, the tary of the Treasury, taking into consideration the current average rate

by the Secretary shall be secured by the obligations of borrowers and the ary's commitments to make contributions under this title and shall be

notes or other obligations shall bear interest at a rate determined by the

utstanding marketable obligations of the United States as of the last day e month preceding the issuance of the notes or obligations by the Secretary. Secretary of the Treasury is authorized and directed to purchase any notes other obligations of the Secretary of Agriculture issued hereunder and for purpose is authorized to use as a public debt transaction the proceeds from sale of any securities issued under the Second Liberty Bond Act, as amended, the purposes for which securities may be issued under such Act are extended include any purchases of such obligations. The Secretary of the Treasury y at any time sell any of the notes or other obligations acquired by him under section. All redemptions, purchases, and sales by the Secretary of the easury of such notes or other obligations shall be treated as public-debt transtions of the United States.

"SEC. 711. The Secretary is authorized, on or after July 1, 1948, to make ntributions or grants, including commitments therefor, pursuant to sections 3 and 704 of not to exceed $2,500,000, an additional $5,000,000 on or after July 1, 149, an additional $7,500,000 on or after July 1, 1950, and additional amounts $10,000,000 on July 1 of each of the next ten succeeding years.

""SEC. 712. There are hereby authorized to be appropriated to the Secretary uch sums as may be necessary to meet payments on money borrowed by the Secretary up to the amount of the annual contributions made by the Secretary In the form of credits on interest and principal due on obligations of borrowers from the Secretary, and such further sums as may be necessary to enable the Secretary to carry out the provisions of sections 701 to 712, inclusive, of this title. "TITLE VIII—ADMINISTRATIVE AND MISCELLANEOUS PROVISIONS

"SEC. 801. Effective upon the date of enactment of this Act, the Housing and Home Finance Administrator shall receive compensation at the rate of $17,500 per annum, and the members of the Home Loan Bank Board, the Federal Housing Commissioner, and the Public Housing Commissioner shall each receive compensation at the rate of $15,000 per annum.

"SEC. 802. In carrying out their respective functions, powers, and duties—

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(a) The Housing and Home Finance Administrator may appoint such officers and employees as he may find necessary, which appointments shall be subject to the civil-service laws and the Classification Act of 1923, as amended. The Administrator may make such expenditures as may be necessary to carry out his functions, powers, and duties, and there are hereby authorized to be appropriated to the Administrator, out of any moneys in the Treasury not otherwise appropriated, such sums as may be necessary to carry out such functions, powers, and duties and for administrative expenses in connection therewith. The Administrator may delegate any of his functions and powers to such officers, agents, or employees as he may designate, and may make such rules and regulations as may be necessary to carry out his functions, powers, and duties. The Administrator shall cause to be prepared for the Housing and Home Finance Agency an official seal of such device as he shall approve, and judicial notice shall be taken of said seal.

"(b) The Public Housing Administration shall sue and be sued only with subject to the civil-service laws and the Classification Act of 1923, as amended; and title II of Public Law 671, Seventy-sixth Congress, approved June 28, 1940, as amended. The Public Housing Commissioner may appoint such officers and employees as he may find necessary, which appointments, notwithstanding the provisions of any other law, shall hereafter be made hereunder, and shall be subject to the civil-service laws and the Classification Act of 1923, as amended; delegate any of his functions and powers to such officers, agents, or employees of the Public Housing Administration as he may designate; and make such rules

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which will provide decent, safe, and sanitary dwellings for the needs of the family using the housing, the type and character of the farming operations to be conducted, and the size and earning capacity of the land.

"(b) The Secretary may require any recipient of a loan or grant to agree that the availability of housing constructed or improved with the proceeds of the loan or grant under this title shall not be a justification for directly or indirectly changing the terms or conditions of the lease or occupancy agreement with the occupants of such housing to the latters' disadvantage without the approval of the Secretary.

""SEC. 709. In carrying out the provisions of this title, the Secretary shall have the power to

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(a) make contracts for services and supplies without regard to the provisions of section 3709 of the Revised Statutes, as amended, when the aggregate amount involved is less than $300;

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(b) enter into subordination, subrogation, or other agreements satisfactory to the Secretary;

"(c) compromise claims and obligations arising out of sections 702 to 705, inclusive, of this title and adjust and modify the terms of mortgages, leases, contracts, and agreements entered into as circumstances may require, including the release from personal liability, without payment of further consideration, of

"(1) borrowers who have transferred their farms to other approved applicants for loans who have agreed to assume the outstanding indebtedness to the Secretary under this title; and

"(2) borrowers who have transferred their farms to other approved applicants for loans who have agreed to assume that portion of the outstanding indebtedness to the Secretary under this title which is equal to the earning capacity value of the farm at the time of the transfer, and borrowers whose farms have been acquired by the Secretary, in cases where the Secretary determines that the original borrowers have cooperated in good faith with the Secretary, have farmed in a workmanlike manner, used due diligence to maintain the security against loss, and otherwise fulfilled the covenants incident to their loans, to the best of their abilities;

"(d) collect all claims and obligations arising out of or under any mortgage, lease, contract, or agreement entered into pursuant to this title and, if in his judgment necessary and advisable, to pursue the same to final collection in any court having jurisdiction: Provided, That the prosecution and defense of all litigation under this title shall be conducted under the supervision of the Attorney General and the legal representation shall be by the United States attorneys for the districts, respectively, in which such litigation may arise and by such other attorney or attorneys as may, under law, be designated by the Attorney General;

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(e) bid for and purchase at any foreclosure or other sale or otherwise to acquire the property pledged or mortgaged to secure a loan or other indebtedness owing under this title, to accept title to any property so purchased or acquired, to operate or lease such property for such period as may be necessary or advisable, to protect the interest of the United States therein and to sell or otherwise dispose of the property so purchased or acquired by such terms and for such considerations as the Secretary shall determine to be reasonable and to make loans to provide adequate housing for the purchasers of such property;

"(f) utilize with respect to indebtedness arising from loans and payments made under this title all the powers and authorities given to him under the Act approved December 20, 1944, entitled "An Act to authorize the Secretary of Agriculture to compromise, adjust, or cancel certain indebtedness, and for other purposes" (58 Stat. 836), as such Act now provides or may hereafter be amended;

"(g) make such rules and regulations as he deems necessary to carry out the purposes of this title.

"'OBLIGATIONS AND APPROPRIATIONS

"SEC. 710. The Secretary may issue notes and other obligations for purchase by the Secretary of the Treasury in such sums as may be necessary to make loans under this title not in excess of $25,000,000 on or after the 1st day of July 1948, an additional $50,000,000 on or after the 1st day of July 1949, an additional $75,000,000 on or after the 1st day of July 1950, and an additional

$100,000,000 on or after the 1st day of July 1951. The notes and other obligations issued by the Secretary shall be secured by the obligations of borrowers and the Secretary's commitments to make contributions under this title and shall be repaid from the payment of principal and interest on the obligations of the borrowers and from funds appropriated hereunder. The notes and other obligations issued by the Secretary shall be in such forms and denominations, shall have such maturities, and shall be subject to such terms and conditions as may be prescribed by the Secretary 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 the notes or obligations by the Secretary. The Secretary of the Treasury is authorized and directed to purchase any notes and other obligations of the Secretary of Agriculture issued hereunder 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 are extended to include any purchases of such 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.

"SEC. 711. The Secretary is authorized, on or after July 1, 1948, to make contributions or grants, including commitments therefor, pursuant to sections 703 and 704 of not to exceed $2,500,000, an additional $5,000,000 on or after July 1, 1949, an additional $7,500,000 on or after July 1, 1950, and additional amounts of $10,000,000 on July 1 of each of the next ten succeeding years.

"SEC. 712. There are hereby authorized to be appropriated to the Secretary such sums as may be necessary to meet payments on money borrowed by the Secretary up to the amount of the annual contributions made by the Secretary in the form of credits on interest and principal due on obligations of borrowers from the Secretary, and such further sums as may be necessary to enable the Secretary to carry out the provisions of sections 701 to 712, inclusive, of this title. ""TITLE VIII-ADMINISTRATIVE AND MISCELLANEOUS PROVISIONS

ADMINISTRATIVE PROVISIONS

"SEC. 802. In carrying out their respective functions, powers, and duties "(a) The Housing and Home Finance Administrator may appoint such officers and employees as he may find necessary, which appointments shall be subject to the civil-service laws and the Classification Act of 1923, as amended. The Administrator may make such expenditures as may be necessary to carry out his functions, powers, and duties, and there are hereby authorized to be appropriated to the Administrator, out of any moneys in the Treasury not otherwise appropriated, such sums as may be necessary to carry out such functions, powers, and duties and for administrative expenses in connection therewith. The Administrator may delegate any of his functions and powers to such officers, agents, or employees as he may designate, and may make such rules and regulations as may be necessary to carry out his functions, powers, and duties. The Administrator shall cause to be prepared for the Housing and Home Finance Agency an official seal of such device as he shall approve, and judicial notice shall be taken of said seal.

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and regulations as he may find necessary to carry out his functions, powers, and duties. Funds made available for carrying out the functions, powers, and duties of the Administration (including appropriations therefor, which are hereby authorized) shall be available, in such amounts as may from year to year be authorized by the Congress, for the administrative expenses of the Administration.

"(c) The Housing and Home Finance Administrator, the Home Loan Bank Board (which term as used in this section shall also include and refer to the Federal Savings and Loan Insurance Corporation, the Home Owners' Loan Corporation, and the Chairman of the Home Loan Bank Board), the Federal Housing Commissioner, the Public Housing Commissioner, and the National Home Mortgage Corporation, respectively, may, in addition to and not in derogation of any powers and authorities conferred elsewhere in this Act

"(1) with the consent of the agency or organization concerned, accept and utilize equipment, facilities, or the services of employees of any State or local public agency or instrumentality, educational institution, or nonprofit agency or organization and, in connection with the utilization of such services, may make payments for transportation while away from their homes or regular places of business and per diem in lieu of subsistence en route and at place of such service, in accordance with the provisions of Fifth United States Code, 73b-2;

"(2) utilize, contract with, and act through, without regard to section 3709 of the Revised Statutes, any Federal, State, or local public agency or instrumentality, educational institution, or nonprofit agency or organization with the consent of the agency or organization concerned, and any funds available to said officers for carrying out their respective functions, powers, and duties shall be available to reimburse any such agency or organization; and, whenever in the judgment of any such officer necessary, he may make advance, progress, or other payments with respect to such contracts without regard to the provisions of section 3648 of the Revised Statutes;

(3) make expenditures for all necessary expenses, including preparation, mounting, shipping, and installation of exhibits; purchase and exchange of technical apparatus; and such other expenses as may, from time to time, be found necessary in carrying out their respective functions, powers, and duties: Provided, That the provisions of section 3709 of the Revised Statutes shall not apply to any purchase or contract by said officers (or their agencies), respectively, for services or supplies if the amount thereof does not exceed $300: And provided further, That funds made available for administrative expenses in carrying out the functions, powers, and duties imposed upon the Housing and Home Finance Administrator (except those imposed pursuant to titles II and V hereof), the Home Loan Bank Board, the Federal Housing Commissioner, and the Public Housing Commissioner, respectively, by or pursuant to law may at their option be consolidated into single administrative expense fund accounts of said officers or agencies for expenditure by them, respectively, in accordance with the provisions hereof.

"ACT CONTROLLING

"SEC. 803. Insofar as the provisions of any other law are inconsistent with the provisions of this Act, the provisions of this Act shall be controlling.

"'SEPARABILITY

SEC. 804. Except as may be otherwise expressly provided in this Act, all powers and authorities conferred by this Act shall be cumulative and additional to and not in derogation of any powers and authorities otherwise existing. Notwithstanding any other evidences of the intention of Congress, it is hereby declared to be the controlling intent of Congress that if any provisions of this Act, or the application thereof to any persons or circumstances, shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this Act or its applications to other persons and circumstances, but shall be confined in its operation to the provisions of this Act, or the application thereof to the persons and circumstances, directly involved in the controversy in which such judgment shall have been rendered.'"

STUDY OF FLANDERS' AMENDMENTS

SUMMARY

SECTION-BY-SECTION ANALYSIS OF SENATOR FLANDERS' PROPOSED AMENDMENTS TO S. 866

TITLE I-FHA TITLE VI AND TRANSITIONAL PERIOD AMENDMENTS

Subsection (a)

SECTION 101

FHA TITLE VI AMENDMENTS

Paragraphs (1) and (2) increase the title VI mortgage insurance authorization by $2,000,000,000, of which $1,000,000,000 would be available immediately, and the additional $1,000,000,000 only with the approval of the President.

Paragraph (3) extends the title VI mortgage insurance authorization for 1 year, from March 31, 1948, to March 31, 1949.

Paragraph (4) has the effect of requiring that, of the additional $2,000,000,000 mortgage insurance authorization provided by paragraphs (1) and (2), at least half shall be available only for rental housing with not less than $800,000,000 being available for rental properties (under sec. 608 of title VI), and not less than $200,000,000 being available for two-, three-, and four-family dwellings (under sec. 603 of title VI).

Subsections (b) and (c)

These subsections have the effect of placing title VI section 603 mortgage insurance (that is, insurance on 1- to 4-family dwellings) on the basis of "value" instead of the present basis of "necessary current cost."

Subsection (d)

This subsection recognizes that, while the urgent need for rental housing makes it necessary to retain for the next year the present basis for insuring mortgage loans on large scale rental projects, there should be adequate safeguards which will prevent this liberalized form of mortgage insurance from giving support to further cost increases. It would therefore provide an additional limitation to the effect that the amount of the mortgage loan shall not exceed 90 percent of the estimated replacement cost of the project on the basis of the costs prevailing at the end of 1947 in the locality for rental properties of comparable quality.

Subsections (e) and (f)

These subsections have the effect of deleting the present cost limitations of $1,500 per room (with discretionary power in the FHA to

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