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PennsylvaNia, except for inheritance, estate, gift and transfer

taxes.

Section 306. Agreement with the State. --The State does

4 hereby pledge to and agree with the holders or guarantors of aty 5 bonds issued under this act, that the State will not limit the

6 rights hereby vested in the agency to fulfill the terms of any agreements made with the holders thereof, or in any way impair

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the rights and remedies of such holders until such bonds,

together with the interest thereon, are fully met and

discharged. The agency is authorized to include this pledge an

agreement of the State in any agreement with the holders of sech

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bonds.

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Section 307.

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Moneys of the Agency.--(a) All moneys of the agency, except as otherwise authorized or provided in this act, shall be paid to the treasurer of the agency. Such moneys shall

be deposited in the first instance by the treasurer in one or 17 more banks or trust companies, in one or more special accounts 18 and each of such special accounts shall be continuously secured

by a pledge of direct obligation of the United States of America, of the Commonwealth, having an aggregate market value, exclusive of accrued interest, at all times at least equal to

the balance on deposit in such account. Such securities shall either be deposited with the treasurer or held by a trustee or 24 agent satisfactory to the agency. All banks and trust companies are authorized to give such security for such deposits. The

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moneys in said accounts shall be paid out

on

a warrant or other

27 order of the treasurer of the agency, or of such other persc

28 persons as the agency may authorize to execute such warrants

(b) The Auditor General, or his legally authorized

representative, is hereby authorized and empowered from time to time to examine the books and accounts of the agency including its receipts, disbursements, contracts, leases, sinking funds, investments and other matters relating to its financial standing. Such examination shall be conducted by the Auditor General at least once every five years; the Auditor General is authorized, however, to accept from the agency in lieu of such examination, an external audit conducted in accordance with generally accepted auditing standards, made at the request of

the corporation.

(c) The agency shall submit to the Governor and the General Assembly, within thirty days of receipt thereof by the agency, a copy of the report of every external audit of the books and accounts of the corporation other than copies of the reports of such examinations made by the Auditor General.

Section 308. Assistance by State Officers, Departments, Boards and Commissions.--(a) State agencies shall give priority and render such services to the agency within their respective functions as may be requested by the agency.

(b) Upon request of the agency, any State agency is hereby authorized and empowered to transfer to the agency such officers and employes as it may deem necessary from time to time to assist the agency in carrying out its functions and duties under this act. Officers and employes so transferred shall not lose their civil service status or rights.

Section 309. Annual Report.--(a) The agency shall submit to the Governor and the General Assembly within six months after the end of its fiscal year, a complete and detailed report setting forth:

(1) Its operations and accomplishments.

(2)

Its receipts and expenditures during such fiscal year.

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(3)

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Its assets and liabilities at the end of its fiscal year; including a schedule of its leases and mortgages and the

status of reserve, special or other funds.

(4) A schedule of its bonds outstanding at the end of its fiscal year, together with a statement of the amounts redeemed and incurred during such fiscal year.

(b) The chairman of the agency shall annually, before each 9 legislative session, certify to the Governor and General Assembly the sum, if any, required to restore any reserve or

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sinking fund to an amount equal to the maximum amount of 12 principal and interest maturing and becoming due in the 13 succeeding year on the bonds of the agency then outstanding and 14 secured by any such reserve or sinking funds. The Governor shall cause the su. or sums so certified to be placed in the budget the Commonwealth for the next succeeding fiscal year so that th 17 General Assembly shall be enabled to provide appropriations sufficient to make up any deficiency or otherwise to avoid any

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default.

Section 310. Effective Date.--This act shall take effect immediately.

The CHAIRMAN. Anything further, Senator?

Senator WILLIAMS. No.

The CHAIRMAN. Let me say, Mr. Eisman, I enjoyed your statement ery much. I thought it was very good. They are good suggestions. I stated-I don't know whether you had come in or not-that in ny State of Alabama a member of the State legislature from my home town, Bill Keene, who formerly was the director of the Model Cities program there until he got into politics, has introduced some ind of a bill or is introducing some kind of a bill into the State egislature seeking to do apparently the same thing that these other states have done. To me it seems a good idea.

One of the big troubles is we keep crying out in this country about he need for more housing, decent, safe and sanitary housing, in good ommunities, good surroundings, to take care of the American famies, both the new families and those who are living in housing that as worn out, that has to be replaced and so forth.

It is a difficult thing to get the housing built that we need, and I hink we have got to turn to every resource that is available to us to roduce the housing that will be required in the future.

In the year 1968 we set a goal of 26 million units by 1978. We are oing very well right now, but we have been behind every year so ar. And as the years pass we have got to build more and more units. I believe the present rate seasonally adjusted on an annual basis 3 about 2.2 million units, right on the target for this year, but we ave still got those years behind us to make up, and we have got an creasing number that will be required each year.

So I think we are going to have to utilize every resource that we an find if we are to produce the housing that American families ant, need, and are entitled to.

I am very glad, first of all, that Senator Williams has introduced gislation to this effect and to learn that quite a number of States ave fallen in line, and I hope that others will and we may continue > find means by which we can get housing produced.

Thank you very much.

Mr. EISMAN. Thank you, Senator.

The CHAIRMAN. That concludes the hearings this morning and also concludes the hearings on housing legislation. The record will be ept open a week from this time for any statements, corrections that nyone might want to make for the record.

The committee stands adjourned.

(Whereupon, at 11:03 a.m., the subcommittee adjourned subject to le call of the chairman.)