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law of the United States, for cooperative efforts and mutual assistance in the comprehensive planning for the physical growth and development of interstate, metropolitan, or other urban areas, and to establish such agencies, joint or otherwise, as they may deem desirable for making effective such agreements and compacts."

(b) Section 701 of such Act is further amended by

(1) striking out the matter preceding paragraph (1) of subsection (a) and inserting in lieu thereof the following:

"SEC. 701. (a) In order to assist State and local governments in solving planning problems resulting from the increasing concentration of population in metropolitan and other urban areas, including smaller communities; to facilitate comprehensive planning for urban development, including coordinated transportation systems, on a continuing basis by such governments; and to encourage such governments to establish and improve planning staffs, the Administrator is authorized to make planning grants to-";

(2) inserting the following after "agencies" in paragraph (2) of subsection (a): ", or other agencies and instrumentalities designated by the Governor (or Governors in the case of interstate planning) and acceptable to the Administrator,";

(3) adding the following at the end of subsection (a): "The Administrator shall encourage cooperation in preparing and carrying out plans among all interested municipalities, political subdivisions, public agencies, and other parties in order to achieve coordinated development of entire areas. To the maximum extent feasible, pertinent plans and studies already made for areas shall be utilized so as to avoid unnecessary repetition of effort and expense. Planning which may be assisted under this section includes the preparation of comprehensive urban transportation surveys, studies, and plans to aid in solving problems of traffic congestion, facilitating the circulation of people and

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goods in metropolitan and other urban areas and reducing transportation needs. Funds available under this section shall be in addition to and may be used jointly with funds available for planning surveys and investigations under other Federally-aided programs, and nothing contained in this section shall be construed as affecting the authority of the Secretary of Commerce under section 307 of title 23, United States Code."; and

(4) striking out the first sentence of subsection (d) and inserting in lieu thereof the following: "It is the further intent of this section to encourage comprehensive planning, including transportation planning, for States, cities, counties, metropolitan areas, and urban regions and

the establishment and development of the organizational units needed therefor. The Administrator is authorized to provide technical assistance to State and local governments and their agencies and instrumentalities undertaking such planning and, by contract or otherwise, to make studies and publish information on related problems."

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1.3f (1) SENATE COMMITTEE ON BANKING AND CURRENCY S. REP. No. 281, 87th Cong., 1st Sess. (1961)

HOUSING ACT OF 1961

MAY 19, 1961.-Ordered to be printed

Mr. SPARKMAN, from the Committee on Banking and Currency, submitted the following

REPORT

[To accompany S. 1922]

The Committee on Banking and Currency, having considered the same, report favorably a committee bill (S. 1922) to assist in the provision of housing for moderate- and low-income families, to promote orderly urban development, to extend and amend laws relating to housing, urban renewal, and community facilities, and for other purposes, and recommend that the bill do pass.

INTRODUCTION

GENERAL

The Subcommittee on Housing held hearings on April 4-7, April 10-14, and April 20, 1961, to consider S. 517, S. 518, S. 605, S. 608, S. 726, S. 766, S. 858, S. 1226, S. 1245, S. 1324, S. 1478, and S. 1481. These hearings resulted in a printed record of over 1,000 pages. In addition, on March 20, 21, and 22, 1961, the subcommittee held hearings to consider S. 345, a bill to provide for an urban mass transportation program. This hearing resulted in a printed record of some 450 pages. On April 26 and 27, the subcommittee, in executive session, considered these measures, the testimony received during the hearings, and all other matters presented to it in connection with 1961 housing legisla

tion and subsequently made recommendations to the committee. After executive sessions on May 16, 17, and 18, 1961, during which the committee considered the subcommittee's recommendations and other bills and proposals, an original bill was drafted by the committee and is reported for the consideration of the Senate.

In general, the committee bill is designed (1) to bring about a realistic housing program for moderate-income families; (2) to encourage the rehabilitation and improvement of existing properties by

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establishing a long-term, low-interest rate improvement and rehabilitation program within the medium of FHA loan insurance; (3) to encourage research and development and the use of advanced technology in the construction industry by permitting the FHA Commissioner to insure mortgages on buildings which are constructed on an experimental basis with improved methods and materials; (4) to initiate a new program of Federal aid to communities for the acquisition of undeveloped land for preservation and use as open space; (5) to assist in the improvement of mass transit systems; and (6) to provide continuity for various existing housing programs and to make necessary technical amendments to insure that existing housing programs better serve the housing needs of the people.

Much of the legislation contained in this bill has particular significance because no general housing legislation was enacted during the second session of the 86th Congress.

Planning assistance

URBAN PLANNING

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Section 311 of the bill would change the urban planning grant program (sec. 701 of the Housing Act of 1954) to (1) increase the Federal share of costs of planning activities undertaken under that program from one-half to two-thirds, (2) increase the authorization for appropriations for grants from $20 million to $100 million, (3) clarify eligibility of transportation planning for assistance, and (4) facilitate interstate planning for metropolitan areas and other urban areas crossing state boundaries.

1. The increase in the Federal share from one-half to two-thirds would enable States to give broader assistance to planning in smaller communities and would stimulate metropolitan planning. The Housing Act of 1954 recognizes the need for State operations on

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behalf of smaller communities in the resolution of development problems

and the need, in larger urban areas, for an attack on such problems on a State, regional or metropolitan basis. An increase in the Federal share in the urban planning assistance program would facilitate such actions. The program was originally developed in part in recognition of the fact that local funds for planning are hardest to obtain in smaller cities and for areawide planning activities.

This increase is also designed to facilitate the coordination of highway planning and general urban planning by bringing the Federal share of costs of the latter closer to the level provided for highway planning.

2. The increase in the Federal share will in itself, of course, require some increase in authorization. However, heavily increased demands for planning assistance are expected to derive from several other sources, which will constitute the major need for increased authorization. These

sources are:

(a) The broadened program under the Housing Act of 1959, providing assistance to communities with populations up to 50,000 (from a former 25,000 limit) to groups of adjacent small communities, to counties under 50,000 in population, and to States for State and interstate comprehensive planning. There has been an increasing participation and interest on the part of these newly eligible communities, counties, and States.

(b) The recent agreement between the Housing Agency and the Department of Commerce to jointly assist coordinated highway and general planning activities, particularly in urban areas. Although this is regarded as experimental, wide expressions of interest have been received from all over the country. The costs of these large-scale projects are expected to be substantially higher than those of typical section 701 projects.

(c) Increasing attention to the general planning aspects of mass transportation development in metropolitan areas. This type of planning is now possible under the present law if sufficient funds are available.

(d) Proposals for programs of assistance to depressed areas extending urban planning assistance to communities in such areas regardless of population.

Assurance of adequate funds will enable States to establish assistance programs for smaller communities on a more systematic basis and will permit metropolitan agencies to increase the scope and intensity of their planning activities. The uncertain availability of Federal funds in the past has been an inhibiting factor on such activities. Thus far, $16.4 million has been appropriated of the presently authorized $20 million.

3. Several amendments would be made to section 701 to make it

clear that the planning assisted by the Housing Administrator under that section may include mass transportation planning. Eligible planning would specifically include, but not be limited to, the preparation of surveys to determine the need for mass transportation and of plans for the development of comprehensive and coordinated mass transportation systems.

It would be specified that the section 701 program authority is in addition to and not in derogation of the authority of the Secretary of Commerce to make funds available for highway planning, surveys,

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and investigations, or of other such authority in connection with federally aided programs.

4. Blanket authorization for compacts between States for planning activities assisted by this program is to provide assurance to States that the constitutional prohibition on interstate compacts is not violated by agreements between States to engage in joint planning activities. It would relieve the States of having to obtain congressional consent for each such joint planning activity contemplated over a period of time. This blanket authorization would not, of course, run to other joint undertakings between States that might require congressional approval.

At the present time there are 215 standard metropolitan statistical areas of which 22 extend beyond a single State. There are, in addition, a variety of lesser urban areas lying across State lines which should be planned as entities. This general authorization for interstate planning will permit and encourage interstate planning activities eligible to be assisted under the urban planning assistance program.

URBAN PLANNING ASSISTANCE

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Planning assistance

Section 311(1).—Amends section 701 of the Housing Act of 1954 to change the amount of grant from one-half to two-thirds of the estimated cost of the work for which the grant is made.

Section 311(2).-Amends section 701 of such act to increase appropriation authorization from $20 million to $100 million.

Section 311(3).-Amends section 701 of such act to extend planning to include the preparation of comprehensive mass transportation surveys to help problems of mass transit in urban areas.

Section 311(4).—Amends section 701 of such act to permit grants to be made to interstate planning agencies formed by interstate compacts.

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