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1 State, or local governments, to provide for the relocation of 2 persons, families, business concerns, and nonprofit organiza3 tions displaced in carrying out its development activities, to 4 exercise its powers and functions through subsidiaries estab5 lished by it, and to establish community advisory committees 6 to advise it concerning its proposed activities in any area. (b) For the purposes of this Act

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(1) a "State development agency" is any public body or agency, publicly sponsored corporation, or instrumentality of one or more States, and

(2) a "metropolitan development agency" is any public body or agency, publicly sponsored corporation, or other instrumentality of two or more units of general local government which are located in a Standard Mettropolitan Statistical Area (as defined by the Office of

Management and Budget) and one of which is the central city of such Standard Metropolitan Statistical Area, 18 but only if such public body or agency, publicly sponsored 19 corporation, or other instrumentality has as its general pur

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poses

in whole or in part (A) the provision of decent, safe,

21 and sanitary housing and related facilities to low- and mod22 erate-income persons and families through construction, re23 habilitation, or management of housing, (B) the revitaliza24 tion of slum and blighted urban neighborhoods through clear25 ance, reconstruction, and rehabilitation of such neighbor

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1 hoods and the provision of necessary public and community 2 facilities and services, and (C) the development of job op3 portunities for unemployed and underemployed persons 4 through the development of new, and the redevelopment of 5 existing, industrial, manufacturing, and commercial facilities. 6 (c) As used in this Act, the term "State" means any 7 State of the United States, the District of Columbia, the Com8 monwealth of Puerto Rico, any territory or possession of the 9 United States, or any agency or instrumentality of the 10 foregoing.

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LIMITATION OF GUARANTEES

SEC. 6. The Secretary shall take such steps as he con13 siders reasonable to assure that bonds, debentures, notes, and 14 other obligations which are guaranteed, or with respect to 15 which interest loans are made, under this Act, will—

(1) be issued only to investors approved by, or meeting requirements prescribed by, the Secretary, or, if an offering to the public is contemplated, be underwritten upon terms and conditions approved by the Secretary; (2) bear interest at a rate satisfactory to the Secretary;

(3) contain or be subject to repayment, maturity, and other provisions satisfactory to the Secretary; and (4) contain or be subject to provisions with respect to the protection of the Security interests of the United

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1 States, including any provisions deemed appropriate by

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the Secretary relating to subrogation, liens, and releases

of liens, payment of taxes, cost certification procedures,

escrow or trusteeship requirements, or other matters.

REVOLVING FUND

SEC. 7. (a) The Secretary is authorized to establish a 7 revolving fund to provide for the timely payment of any lia8 bilities incurred as a result of guarantees or grants under sec9 tion 3 and payment of obligations issued to the Secretary of

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the Treasury under subsection (b) of this section. Such re

volving fund shall be comprised of (1) receipts from fees and

charges; (2) recoveries under security, subrogation, and 13 other rights; (3) repayments, interest income, and any other

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receipts obtained in connection with guarantees made under 15 section 3; (4) proceeds of the obligations issued to the Secre

tary of the Treasury pursuant to subsection (b) of this sec

tion; and (5) such sums, which are hereby authorized to be appropriated, as may be required for the payment of the obli

gations issued to the Secretary of the Treasury for the purpose of making grants to agencies under section 3. Money in the

revolving fund not currently needed for the purpose of this

Act shall be kept in cash on hand or on deposit, or invested

in obligations of the United States or guaranteed thereby,

or in obligations, participations, or other instruments which are lawful investments for fiduciary, trust, or public funds.

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1 (b) The Secretary may issue obligations to the Secre2 tary of the Treasury in an amount sufficient to enable the 3 Secretary to carry out his functions with respect to the guar4 antees authorized by section 3. The obligations issued under 5 this subsection shall have such maturities and bear such rate

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or rates of interest as shall be determined by the Secretary 7 of the Treasury. The Secretary of the Treasury is authorized 8 and directed to purchase any obligations so issued, and for 9 that purpose he is authorized to use as a public debt transac10 tion the proceeds from the sale of any securities issued under 11 the Second Liberty Bond Act, and the purposes for which 12 securities may be issued under that Act are extended to 13 include purchases of the obligations hereunder.

14 (c) Notwithstanding any other provision of law relating 15 to the acquisition, handling, improvement, or disposal of 16 real and other property by the United States, the Secretary 17 shall have power, for the protection of the interests of the 18 fund authorized under this section, to pay out of such fund 19 all expenses or charges in connection with the acquisition, 20 handling, improvement, or disposal of any property, real or 21 personal, acquired' by him as a result of recoveries under 22 security, subrogation, or other rights.

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LABOR STANDARDS

SEC. 8. All laborers and mechanics employed by contrac

tors or subcontractors in development activities assisted un

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1 der this Act shall be paid wages at rates not less than those 2 prevailing on similar work in the locality as determined by

3 the Secretary of Labor in accordance with the Davis

4 Bacon Act, as amended (40 U.S.C. 276a-276a-5). No

5 assistance shall be extended under this Act with respect to

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any development activities without first obtaining adequate 7 assurance that these labor standards will be maintained upon 8. the work involved in such activities. The Secretary of Labor 9 shall have, with respect to the labor standards specified in 10, this section, the authority and functions set forth in Reor11 ganization Plan Numbered 14 of 1950 (64 Stat. 1267), 12 and section 2 of the Act of June 13, 1934 (40 U.S.C.

13 276c).

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NONDISCRIMINATION PROVISION

SEC. 9. (a) No person in the United States shall on 16 the ground of race, color, or national origin be excluded from 17 participation in, be denied the benefits of, or be subjected 18 to discrimination under any development activity assisted 19 under this Act.

20 (b) (1) Whenever the Secretary determines that any 21 State development agency has failed to comply with subsec22 tion (a) or an applicable regulation prescribed under this 23 Act, he shall attempt to secure compliance by voluntary 24 means. If the Secretary determines that compliance can25 not be secured by voluntary means, he shall have the au