2 1 of fifty thousand or less according to the most recent decen 2 nial census,". 3 SEC. 2. The amendment made by the first section of this 4 Act shall apply to contracts entered into under title I of the 5 Housing Act of 1949 on or after the date of the enactment of 6 this Act, and to any contract entered into under such title 7 before such date if the final grant payment has not been made 8 pursuant thereto before such date. 92D CONGRESS 1ST SESSION S. 2261 IN THE SENATE OF THE UNITED STATES JULY 12, 1971 Mr. WILLIAMS introduced the following bill; which was read twice and referred to the Committee on Banking, Housing and Urban Affairs A BILL To establish a program of assistance to State and metropolitan development agencies in order to promote the provision of low- and moderate-income housing and related facilities, sound neighborhood growth and development, and the development of new job opportunities. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 SECTION 1. This Act may be cited as the "State and 4 Metropolitan Development Agency Act of 1971". 1 2 DECLARATION OF PURPOSE 2 SEC. 2. It is the purpose of this Act, by encouraging 3 the formation of and providing Federal assistance to State 4 and metropolitan development agencies having broad and 5 flexible authority to carry out development activities in 6 furtherance thereof, to provide housing and related facilities 7 for persons and families of low and moderate income, pro8 mote the sound growth and development of neighborhoods 9 through the revitalization of slum and blighted areas and the 10 provision of necessary public and community facilities and 11 services, and promote vigorous and growing economies 12 through the development and redevelopment of industrial, 13 manufacturing, and commercial facilities. 14 15 GUARANTEES OF OBLIGATIONS SEC. 3. (a) The Secretary of Housing and Urban De16 velopment (hereinafter referred to as the "Secretary") is 17 authorized to guarantee, and enter into commitments to 18 guarantee, the bonds, debentures, notes, and other obligations 19 issued by State and metropolitan development agencies (as 20 defined in section 5 (b)) for the purpose of financing their 21 development activities as determined by him to be in further22 ance of the purpose of this Act. The Secretary may make 23 such guarantees and enter into such commitments upon such 24 terms and conditions as he may prescribe; except that no 25 obligation shall be guaranteed under this Act if the income 66-138 O-71 - pt. 1 -- 45 3 1 from such obligation is exempt from Federal taxation. The 2 Secretary is authorized to make grants to any State or 3 metropolitan development agency the obligations of which 4 are guaranteed under this Act in amounts estimated by him 5 not to exceed the difference between the interest paid on 6 such obligations and the interest (as estimated by him) 7 which would be paid on similar obligations the income from 8 which is exempt from Federal taxation. 9 (b) The full faith and credit of the United States is 10 pledged to the payment of all guarantees made under this 11 Act with respect to principal, interest, and any redemption 12 premiums. Any such guarantee made by the Secretary shall 13 be conclusive evidence of the eligibility of the obligations 14 involved for such guarantee, and the validity of any guar 15 antee so made shall be incontestable in the hands of a holder 16 of the guaranteed obligation. (c) The Secretary is authorized to establish and collect such fees and charges for and in connection with guarantees made under this Act as he considers reasonable. (d) The aggregate principal amount of the obligations which may be guaranteed under this Act and outstanding at any one time shall not exceed $2,000,000,000. GRANTS SEC. 4. (a) The Secretary is authorized to make grants to State and metropolitan development agencies, in such 4 1 amounts and under such terms and conditions as he pre2 scribes, to assist in defraying the administrative and operat3 ing expenses of such agencies during the first three years of 4 their operations. Grants made to any such agency under this 5 section shall not exceed the (1) full amount of its administra6 tive and operating expenses during the first year of its op7 erations, (2) two-thirds of such expenses during the second 8 year of its operations, and (3) one-half of such expenses 9 during the third year of its operations. 10 (b) There are authorized to be appropriated for grants 11 under this section not to exceed $20,000,000 for each of the 12 fiscal years ending June 30, 1972, June 30, 1973, and June 13 30, 1974. Any amount so appropriated shall remain avail14 able until expended, and any amounts authorized for any 15 fiscal year but not appropriated may be appropriated for any 16 succeeding fiscal year. 17 18 ELIGIBLE DEVELOPMENT AGENCIES SEC. 5. (a) A State or metropolitan development agency 19 is eligible for assistance under this Act only if the Secretary 20 determines that it is fully empowered and has adequate au21 thority to carry out the purposes specified in clauses (A), 22 (B), and (C) of subsection (b), including the authority to 23 sell, lease, or otherwise dispose of its interest in projects 24 undertaken by it in carrying out the purposes of this Act, to 25 participate in programs or projects carried on by Federal, |