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Contained in sec. 505(B), except no specific requirement of state or local or other regulation of private systems or for assurances that new private sewerage systems will ultimately be transferred to public ownership.

Contained in sec. 505(g).

Contained in sec. 202(a), general authority of
Secretary to fix premiums (no specific reference to
self-supporting program with respect to land develop-
ment).

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(2) No similar provision. This provision is
unnecessary.

Contained in secs. 1 and 503(a)(4) in simplified form.

66-138 71 pt. 1 -- 33

July 14, 1971

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DETAILED CROSS REFERENCE TABLE SHOWING PRESENT PROVISIONS OF THE UNITED STATES HOUSING

ACT OF 1937 AND THE PROPOSED 1971 PROVISIONS (S 2049)

Description

Vests

Declaration of policy to assist States and localities to remedy unsafe and insanitary housing conditions and the acute shortage of low-income housing. in local public housing agencies maximum responsibility for the administration of the program, including responsibility for fixing rents and eligibility requirements (subject to HUD approval). States that no, tenant should be barred from serving on the board of a public housing agency because of his tenancy.

Definitions

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including that of low-rent housing, which provides that rents (which are fixed by public housing agencies) may not exceed one-fourth of the family's income, as defined by the Secretary (except where limiting tenant rental will result in reduced welfare assistance). Tenant income for fixing rents includes all income of family members over 18 years of age minus $300 for each dependent and secondary wage earner, 5 percent of the family's gross income (10 percent in the case of elderly families), extraordinary medical expenses, nonrecurring income, and income of full-time students. Secretary may also allow further deductions in unusual circumstances.

Disposition in Revised U.S. Housing Act of 1937 (Section numbers refer to revised Act in section 201 of the 1971 proposal except where otherwise indicated) Substantially the same except deletes references to public housing agencies' responsibility for establishing rents and eligibility requirements (see Sec. 3). Term "low-income housing" used in lieu of "low-rent housing" (in this section and elsewhere throughout the bill) to reflect provision of homeownership opportunities for lowincome families. (Sec. 2)

1.

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Definitions are substantially the same except that: Definition of "elderly family" is modified so as to permit a single person who is at least 50 years of age, or the head of a household or his spouse who is at least 50 years of age to reside in public housing.

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Definition of low-income project is added to
make clear that modernization or improvement of
an existing low-income housing project may con-
stitute a separate project for the purpose of
assistance under the Act.
Definition of "public housing agency" is modified
so as to include agencies or instrumentalities of
public agencies which are authorized to assist
in the development or operation of low-income
housing.

Definition of "low-income housing" retains
maximum rent requirement but authority of public
housing agencies to fix income limits and rents
is modified to provide an exception in the case of
public housing agencies which contract to receive
operating subsidies under section 9 of the revised
Act.

(Sec. 3)

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Description

Creation of the United States Housing Authority. Powers
and administrative provisions related to the Authority.
Tax exemption for public housing agency obligations.

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Disposition in Revised U.S. Housing Act of 1937 (Section numbers refer to revised Act in section 201 of the 1971 proposal except where otherwise indicated)

Deletes provisions regarding the United States Housing
Authority which duplicate existing authority for the
powers of the Secretary, but retains the tax exemption
provision, which is modified to make it clear that
obligations are tax exempt whether paid by the public
housing agency or by the Secretary.
(Sec. 12(b))

Deletes present requirement that loans bear interest at a
Provides that
rate not less than the going Federal rate.

the Secretary shall specify an interest rate on loans which
is not less than a rate determined by the Secretary of the
Treasury taking into consideration the current average market
yield on outstanding marketable obligations of the United
States with remaining periods to maturity comparable to
the average maturities of such loans, plus one-eighth of
Secretary may require loans or commitments
to make loans to be pledged as security for obligations
one percent.
issued by a public housing agency.
(Sec. 4(a))

Revised Act proposes a new subsidy structure which would
provide for a separation between the authority to make annual
contributions based on debt service requirements and the
Deletes
authority to make operating subsidy payments.
requirement that annual contributions be fixed in uniform
amounts and paid in such amounts over a fixed period of
Deletes equivalent elimination requirement. Authority
years.

to contract for operating subsidy substantially the same in
Deletes the $120 special
operating subsidy provision.

category subsidy since the purpose of this subsidy is included in proposed new operating subsidy authorization in section 9 of revised Act.

(Sec. 5(a))

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