facilities, and systems, and distribution of industrial, commercial, residential, governmental, institutional, and other activities;

(4) the term "governmental agency" means (A) an Indian tribe or organization determined by the Secretary to have governmental characteristics, and (B) an organization, including a nonprofit organization composed or predominantly composed of elected public officials, which meets State standards and criteria prescribed pursuant to section 904 or, in the absence of such standards and criteria, an areawide agency, designated pursuant to title II of the Demonstration Cities and Metropolitan Development Act of 1966 or title IV of the Intergovernmental Cooperation Act of 1968, which is organized to deal with matters of governmental concern to two or more public bodies or units of government; and

(5) the term "cities" means (A) a city within a standard metropolitan statistical area which is the central city of such area, as defined and used by the Office of Management and Budget, or (B) any other city which has a population of fifty thousand or more.

PLANNING AND MANAGEMENT PROGRAMS GENERALLY

SEC. 903. (a) Planning and management programs assisted under this title shall be designed by the State or locality to meet its own particular needs and to improve capabilities of elected officials for developing, implementing, and evaluating policies, programs, and projects in a balanced manner that will further the purpose of this title. Activities which may be supported under this title are those which (1) will aid in the attainment of specified State or local objectives relating to governmental operation, land use, housing, development, resource management, or areawide and intergovernmental coordination, and (2) are carried out in a manner which assures periodic examination by States or localities of methods and objectives as information becomes available on the social, economic, and environmental consequences of program activities.

(b) The authorities provided in this title shall be administered in such a manner as (1) to recognize fully the rights, powers, and responsibilities of State and local governments, and (2) to allow for innovation and diversity on the part of State and local governments in the design and implementation of their planning and management programs.

(c) In carrying out the provisions of this title in areas whose development has significance for purposes of national growth and urban development objectives, the Secretary shall encourage the formulation of plans and programs which will include the studies, criteria, standards, and implementing procedures necessary for effectively guiding and controlling major decisions as to where growth should take place within such areas. Such plans and programs shall take account of the availability of and need for conserving land and other irreplaceable natural resources; of projected changes in size, movement, and composition of population; of the necessity for expanding housing and employment opportunities; of the opportunities, requirements, and possible locations for, new communities and large-scale projects for expanding or revitalizing existing communities; and of the need for methods of achieving modernization, simplification, and improvements in governmental structures, systems, and procedures related to growth objectives. (d) Planning and management activities which qualify for assistance under this title shall include a housing element as part of the preparation of comprehensive land use plans. This housing element shall include a proposed housing program covering a three-year period which (1) establishes areawide housing needs, including the need to provide an adequate supply of standard housing for low- and moderate-income families within reasonable proximity to their places of employment and supporting community services and facilities, (2) establishes adequate and feasible objectives toward meeting those needs, (3) identifies the number and types of housing units to be assisted with Federal subsidy funds, (4) identifies the income groups to be served and the general location of the housing units to be made available to each such group, and (5) identifies other local actions and programs to be undertaken to increase housing production and to preserve the existing housing stock.

STATE PLANNING AND MANAGEMENT PROGRAMS

SEC. 904. (a) State planning and management programs shall be consistent with the provisions of section 903 and, in addition to the activities specified in section 905, shall include (1) a statewide development plan which seeks to integrate all important elements of community development (including land use) and which may include designation of potential growth areas and new community development sites, and (2) standards for determining which communities, or groups of communities, should be considered together as a single locality for purposes of establishing and carrying out local and areawide programs in support of purposes of this title together with criteria and procedures for measuring the adequacy of those programs and for determining whether they, and other significant local actions and projects, are consistent with the State program as developed pursuant to this section.

(b) In addition to the activities authorized in subsection (a), State planning and management programs may also include the preparation of plans and timetables for modernizing and revitalizing State and local governments by methods such as those on the following illustrative checklist:

(1) interstate action in the form of proposed arrangements, by interstate compact or otherwise, for dealing with interstate regional problems, including those of metropolitan areas which overlap State lines, and for regional cooperation in such areas as health, education, welfare, conservation, resource development, transportation, recreation, housing;

(2) State direct action in the form of proposed strengthening and modernizing of State governments (by constitutional, statutory, and administrative changes), including recommendations concerning the short ballot; longer terms for constitutional officers; annual legislative sessions; adequately paid officers and legislators; modernized State borrowing powers; improved tax systems (including an income tax of at least moderate progressiveness); rationalized boards and commissions; increased assistance to local governments; revising the terms of State aids and shared taxes so as to encourage modern local governments and to compensate for differences in total local fiscal capacity: State assumption of direct fiscal responsibility for basic functions; and modern personnel systems;

(3) State action affecting localities in the form of proposed strengthening and modernizing by the State of local, rural, urban, and metropolitan governments (by constitutional, statutory, and administrative changes), including

(A) changes designed to make local government more efficient and economical, as by

(i) reducing the number of, or eliminating, local governments too small to provide efficient administration or possessing inadequate fiscal resources, and special districts not subject to democratic controls;

(ii) restricting local popular elections to policymakers (the short ballot);

(iii) concentrating on a single responsible executive for each local unit;

(iv) reform of personnel practices;

(v) granting adequate home rule powers to local governments of sufficient size and scope;

(vi) improving local property tax administration;

(vii) authorizing local governments to utilize nonproperty taxes, coordinated at the State or regional level;

(viii) easing restrictions on the borrowing and taxing powers of local governments; and

(ix) encouraging the formation of multicounty and regional bodies.

(B) changes designed to strengthen local government in metropolitan areas, as by

(i) liberalizing municipal annexation of unincorporated areas;

(ii) discouraging new incorporations not meeting minimum standards of total population and population density;

(iii) authorizing city-county consolidation, or transfers of specified functions between municipalities and counties;

(iv) authorizing intergovernmental contracts for the provision of services;

(v) authorizing municipalities to exercise extraterritorial planning, zoning, and subdivision control over unincorporated areas not subject to effective county regulation;

(vi) restricting zoning authority in metropolitan areas to metropolitan units, to larger municipalities, to counties, or to the State, in order to prevent zoning by smaller municipalities which excludes housing for lower income families;

(vii) authorizing the formation of metropolitan councils of government and other regional governing bodies;

(viii) authorizing the establishment by the State, by local governmental bodies, or by the voters of the area directly, of metropolitan area study commissions to develop proposals to improve and coordinate local governmental structure and services, to permit sideby-side areawide and local governments, or to permit consolidation of municipalities; to implement such proposals, either directly or by presenting them to the voters of the area; and to present to the voters of the area such proposals;

(ix) authorizing the formation of metropolitan planning agencies to make recommendations to local governments concerning such matters as land use, zoning, building regulations, and capital improvements; and

(x) furnishing State financial and technical assistance to metropolitan areas for such matters as planning, building codes, urban renewal, consolidation, and local government and finance; and

(C) changes designed to make local government more responsive and democratic by decentralizing power and functions back to the neighborhood wherever possible.

(c) States may undertake the activities set forth in section 905 with respect to State governments or on behalf of localities or groups of localities, including areawide agencies, within the State. States also may make grants to localities or groups of localities, including areawide agencies, to support activities set forth in section 905, using funds received under this title.

PROGRAM ACTIVITIES

SEC. 905. In general, activities carried on in formulating, or as part of, a planning and management program, which may qualify for assistance as provided in this title, include the following:

(1) improving governmental systems and operations including revenue and resource allocation systems and methods for obtaining effective public participation in policy decisions;

(2) improving governmental structures, authorities, and coordinating mechanisms for dealing with the economic, social, and environmental complexities of modern society, including expansion of the role of elected executive officials and general units of government;

(3) establishing objectives, evaluating programs for achieving these objectives, and providing for program balance and coordination in response to State and local needs and priorities;

(4) formulating policies and plans governing the use, development, and conservation of land, and developing and carrying out supporting or implementing procedures;

(5) identifying and evaluating needs for housing, facilities, and services, and formulating specific programs for meeting the needs so identified;

(6) providing (directly or through grants or contracts) planning, technical, assistance, information, or advisory services to communities and agencies needing such assistance or services in connection with activities related to the purpose of this title;

(7) participating in organizations for joint or common governmental or governmental and private action, in solving problems of community revitalization and growth; and

(8) other activities or projects, consistent with the purpose of this title, which pertain to the coordination, regulation, modernization, or improved implementation, management, or control of governmental functions.

AUTHORITY TO MAKE GRANTS

SEC. 906. (a) The Secretary may make grants, as provided in this section, to assist States and localities in formulating planning and management programs and carrying out the activities set forth in section 905. In making the initial distribution of funds among States and localities, the Secretary should take into consideration such factors as the applicant's population, social and economic conditions special opportunities to improve the workings of government, unique developmental problems, and other factors consistent with the purpose of this title. In determining whether and on what conditions to continue assistance to any program initially approved, the Secretary shall consider the degree to which previous assistance has been effectively used by the applicant State or local government.

(b) Grants may be made under this section to States and cities and, where consistent with the provisions of State planning and management programs or where the Secretary finds it necessary for carrying out the purpose of this title, to other governmental subdivisions, and to metropolitan, regional, or other governmental agencies.

(c) The Secretary shall not require any matching or other expenditure of State or local funds as a condition to making grants under this title.

(d) There is authorized to be appropriated for grants under this section not to exceed $150,000,000 for the fiscal year ending June 30, 1973, and $150,000,000 for the fiscal year ending June 30, 1974. Of the aggregate amount so appropriated, $25,000,000 shall be available only for grants with respect to activities described in section 904(b), and $60,000,000 shall be available only for grants with respect to the development of the housing element described in section 903(d). Amounts appropriated for any fiscal year under the first sentence of this subsection shall remain available until expended, and amounts authorized but not appropriated for any fiscal year under such sentence shall be available for appropriation for any subsequent fiscal year ending on or before June 30, 1975.

CONDITIONS AND ADMINISTRATION OF GRANTS

SEC. 907. Grants made under this title may be used, subject to regulations and conditions prescribed by the Secretary, for any activities made eligible by the provisions of this title; but such regulations shall provide that grant assistance not be used to defray the cost of the acquisition, construction, repair, or rehabilitation of, or the preparation of engineering drawings or similar detailed specifications for, specific housing, capital facilities, or public works projects.

INTERSTATE AGREEMENTS

SEC. 908. The consent of the Congress is hereby given to any two or more States to enter into agreements or compacts, not in conflict with any law of the United States, for cooperative effort and mutual assistance in support of planning and management programs adopted under this title as they pertain to interstate areas and to localities within such States, and to establish such agencies, joint or otherwise, as they may deem desirable for making such agreement and compacts effective.

FEDERAL CONSULTATION AND COOPERATION

SEC. 909. (a) The Secretary shall consult with the heads of other Federal departments and agencies having responsibilities related to the purpose of this title, including responsibilities connected with the economic development of rural and depressed areas, and the protection and enhancement of the Nation's natural environment, with respect to (1) general standards, policies, and procedures to be followed in the administration of this title, and (2) particular grant actions or approvals which the Secretary believes to be of special interest or concern to one or more of such departments and agencies.

(b) Funds made available under any Federal assistance program for projects or activities approved as part of, or in furtherance of, a planning and management program assisted under this title may be used jointly with funds made available for such projects or activities under any other Federal assistance program, subject to regulations prescribed by the President. Such regulations may include provisions for common technical or administrative requirements where

varying or conflicting provisions of law or regulations would otherwise apply, for establishing joint management funds and common non-Federal shares, and for special agreements, or delegations of authority, among different Federal agencies in connection with the supervision or administration of assistance. Such regulations shall in any case include appropriate criteria and procedures to assure that any special authorities conferred, which are not otherwise provided for by law, shall be employed only as necessary to promote effective and efficient administration and in a manner consistent with the protection of the Federal interest and program purposes or statutory requirements of a substantive nature. For purposes of this section, the term "Federal assistance program" shall have the same meaning as under the Intergovernmental Cooperation Act of 1968.

(c) The Secretary may, as necessary or appropriate and with the approval of the President, delegate any of his powers under this title to the heads of other Federal agencies and authorize the redelegation thereof, subject to such conditions or provisions as may be appropriate to assure effective coordination between the powers so delegated and other powers or functions retained by the Secretary.

TECHNICAL ASSISTANCE

SEC. 910. (a) The Secretary may provide, directly or through contracts, grants, or other arrangements, technical assistance in the formulation or implementation of planning and management programs.

(b) Grant funds made available under this title may be used, subject to such limitations as the Secretary may prescribe, for the purpose of procuring specialized or technical services available pursuant to section 302 of the Intergovernmental Cooperation Act of 1968, and the Secretary is authorized directly to procure such services on behalf of any State or political subdivision which could receive or participate in assistance provided under this title, and the heads of other Federal agencies are authorized to provide such services.

REPEALING AND TRANSITION PROVISIONS

SEC. 911. (a) In addition to amounts authorized and appropriated under section 906, appropriations available for carrying out section 701 of the Housing Act of 1954 shall be available until expended for the purpose of carrying out this title. The provisions of this title shall be effective, in whole or in part, at such date or dates as the Secretary of Housing and Urban Development shall prescribe and the Secretary shall establish procedures for the orderly transfer of Federal assistance activities from the authority of section 701 of the Housing Act of 1954. Effective upon the completion of such transfer, section 701 of the Housing Act of 1954 is repealed.

(b) Title IX of the Demonstration Cities and Metropolitan Development Act of 1966 is hereby repealed.

[II.R. 9331, 92d Cong., first sess.]

A BILL To consolidate, simplify, and improve laws relating to housing and housing assistance Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Housing Consolidation and Simplification Act of 1971".

TITLE I-MORTGAGE CREDIT ASSISTANCE

CONSOLIDATION AND REVISION OF MORTGAGE INSURANCE AUTHORITIES

SEC. 101. The provisions of this section which follow shall be effective as provided in section 102 and may be cited as the "Revised National Housing Act".

REVISED NATIONAL HOUSING ACT

TITLE I-GENERAL AUTHORITY

DEFINITIONS

SECTION 1. As used in this Act-

(a) The term "first mortgage" means such classes of first liens as are commonly given to secure advances on, or the unpaid purchase price of, real estate, under the laws of the State in which the real estate is located, together with the credit instruments, if any, secured thereby.