85 1 ments are due, except that funds obtained through the issu2 ance of obligations pursuant to section 4 (b) (including re3 payments or other realizations of the principal of loans made 4 out of such funds) shall not be available for the payment of 5 such annual contributions. 6 "(d) Any contract for loans or annual contributions, 7 or both, entered into by the Secretary with a public housing 8 agency, may cover one or more than one low-income housing 9 project owned by said public housing agency; in the event 10 such contract covers two or more projects, such projects 11 may, for any of the purposes of this Act and of such con12 tract (including, but not limited to, the determination of the 13 amount of the loan, annual contributions, or payments in 14 lieu of taxes, specified in such contract), be treated collec15 tively as one project. 16 "(e) In recognition that there should be local determi17 nation of the need for low-income housing to meet needs not 18 being adequately met by private enterprise— "(1) the Secretary shall not make any contract with a public housing agency for preliminary loans (all of which shall be repaid out of any moneys which become available to such agency for the development of the projects involved) for surveys and planning in respect to any low-income housing projects (i) unless the governing body of the locality involved has by resolution 1 2 3 4 5 6 7 8 9 10 11 12 23 13 14 86 approved the application of the public housing agency for such preliminary loan; and (ii) unless the public housing agency has demonstrated to the satisfaction of the Secretary that there is a need for such low-income housing which is not being met by private enterprise; and "(2) the Secretary shall not make any contract for loans (other than preliminary loans) or for annual contributions pursuant to this Act unless the governing body of the locality involved has entered into an agreement with the public housing agency providing for the local cooperation required by the Secretary pursuant to this Act. "(f) Subject to the specific limitations or standards in 15 this Act governing the terms of sales, rentals, leases, loans, 16 contracts for annual contributions, or other agreements, the 17 Secretary may, whenever he deems it necessary or desir18 able in the fulfillment of the purposes of this Act, consent to 19 the modification, with respect to rate of interest, time of pay20 ment of any installment of principal or interest, security, 21 amount of annual contribution, or any other term, of any con22 tract or agreement of any kind to which the Secretary is a 23 party. When the Secretary finds that it would promote econ24 omy or be in the financial interest of the Federal Government 25 or is necessary to assure or maintain the low-income char 66-138 71 pt. 1 20 85 1 ments are due, except that funds obtained through the issu ance of obligations pursuant to section 4 (b) (including re3 payments or other realizations of the principal of loans made 4 out of such funds) shall not be available for the payment of 5 such annual contributions. 6 "(d) Any contract for loans or annual contributions, 7 or both, entered into by the Secretary with a public housing 8 agency, may cover one or more than one low-income housing 9 project owned by said public housing agency; in the event 10 such contract covers two or more projects, such projects 11 may, for any of the purposes of this Act and of such con12 tract (including, but not limited to, the determination of the 13 amount of the loan, annual contributions, or payments in 14 lieu of taxes, specified in such contract), be treated collec15 tively as one project. 16 "(e) In recognition that there should be local determi17 nation of the need for low-income housing to meet needs not 18 being adequately met by private enterprise 19 20 "(1) the Secretary shall not make any contract with a public housing agency for preliminary loans (all 21 of which shall be repaid out of any moneys which be 222 23 come available to such agency for the development of the projects involved) for surveys and planning in re spect to any low-income housing projects (i) unless the governing body of the locality involved has by resolution 1 2 3 4 5 6 7 8 9 10 11 12 13 14 86 approved the application of the public housing agency for such preliminary loan; and (ii) unless the public housing agency has demonstrated to the satisfaction of the Secretary that there is a need for such low-income housing which is not being met by private enterprise ; and "(2) the Secretary shall not make any contract for loans (other than preliminary loans) or for annual contributions pursuant to this Act unless the governing body of the locality involved has entered into an agreement with the public housing agency providing for the local cooperation required by the Secretary pursuant to this Act. "(f) Subject to the specific limitations or standards in 15 this Act governing the terms of sales, rentals, leases, loans, 16 contracts for annual contributions, or other agreements, the 17 Secretary may, whenever he deems it necessary or desir18 able in the fulfillment of the purposes of this Act, consent to 19 the modification, with respect to rate of interest, time of pay20 ment of any installment of principal or interest, security, 21 amount of annual contribution, or any other term, of any con22 tract or agreement of any kind to which the Secretary is a 23 party. When the Secretary finds that it would promote econ24 omy or be in the financial interest of the Federal Government 25 or is necessary to assure or maintain the low-income char 86-138 71 pt. 1 20 87 1 acter of the project or projects involved, any contract here2 tofore or hereafter made for annual contributions, loans, or 3 both, may be amended or superseded by a contract of the 4 Secretary. Contracts may not be amended or superseded in a 5 manner which would impair the rights of the holders of any 6 outstanding obligations of the public housing agency involved 7 for which annual contributions have been pledged. Any rule 8 of law contrary to this provision shall be deemed in9 applicable. 10 11 "CONTRACT PROVISIONS AND REQUIREMENTS "SEC. 6. (a) The Secretary may include in any contract 12 for loans, annual contributions, sale, lease, mortgage, or any 13 other agreement or instrument made pursuant to this Act, 14 such covenants, conditions, or provisions as he may deem. 15 necessary in order to insure the low-income character of the 16 project involved. Any such contract may contain a condition 17 requiring the maintenance of an open space or playground in 18 connection with the housing project involved if deemed necessary by the Secretary for the safety or health of children. 20 Any such contract shall require that, except in the case of 21 housing predominantly for the elderly, high-rise elevator 19 22 2 2 2 2 3 projects shall not be provided for families with children un 23 less the Secretary makes a determination that there is no 24 25 practical alternative. "(b) Every contract made pursuant to this Act for |