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agreement heretofore executed by a public housing agency for the sale or lease of low-income housing to low-income families or public housing tenants may be amended to include any of the terms and conditions of this section.

"GENERAL PROVISIONS

"SEC. 11. (a) In the performance of, and with respect to, the functions, powers, and duties vested in him by this Act, the Secretary notwithstanding the provisons of any other law, shall

"(1) prepare annually and submit a budget program as provided for wholly owned Government corporations by the Government Corporation Control Act, as amended; and

"(2) maintain an integral set of accounts which shall be audited annually by the General Accounting Office in accordance with the principles and procedures applicable to commercial transactions as provided by the Government Corporation Control Act, as amended, and no other audit shall be required. "(b) All receipts and assets of the Secretary under this Act shall be available for the purposes of this Act until expended.

"(c) The Federal Reserve banks are authorized and directed to act as depositories, custodians, and fiscal agents for the Secretary in the general exercise of his powers under this Act, and the Secretary may reimburse any such bank for its services in such manner as may be agreed upon.

"FINANCING LOW-INCOME HOUSING PROJECTCS

"SEC. 12. (a) Obligations issued by a public housing agency in connection with low-income housing projects which (1) are secured (A) by a pledge of a loan under any agreement between such public housing agency and the Secretary or (B) by a pledge of annual contributions under an annual contributions contract between such public housing agency and the Secretary, or (C) by a pledge of both annual contributions under an annual contributions contract and a loan under an agreement between such public housing agency and the Secretary, and (2) bear, or are accompanied by, a certificate of the Secretary that such obligations are so secured, shall be incontestable in the hands of a bearer, and the full faith and credit of the United States is pledged to the payment of all amounts agreed to be paid by the Secretary as security for such obligations.

"(b) Obligations, including interest thereon, issued by public housing agencies in connection with low-income housing projects shall be exempt from all taxation now or hereafter imposed by the United States whether paid by such agencies or by the Secretary. The income derived by such agencies from such projects shall be exempt from all taxation now or hereafter imposed by the United States.

"LABOR STANDARDS

"SEC. 13. Any contract for loans, annual contributions, sale, or lease pursuant to this Act shall contain a provision requiring that not less than the wages prevailing in the locality, as determined or adopted (subsequent to a determination under applicable State or local law) by the Secretary, shall be paid to all architects, technical engineers, draftsmen, and technicians employed in the development and to all maintenance laborers and mechanics employed in the operation of the lowincome housing project involved; and shall also contain a provision that not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the Davis-Bacon Act (49 Stat. 1011), shall be paid to all laborers and mechanics employed in the development of the project involved (including a project for the use of privately built housing in any case, other than under the authority of section 8 of this Act, where the public housing agency and the builder or sponsor enter into an agreement for such use before construction or rehabilitation is commenced), and the Secretary shall require certification as to compliance with the provisions of this section prior to making any payment under such contract."

APPLICABILITY OF RENTAL REQUIREMENTS

SEC. 202. If a contract for annual contributions entered into pursuant to section 9 of the United States Housing Act of 1937 would require the establishment of an increased rental charge for a family which occupies a low-income housing dwelling

unit as of the effective date of such contract, the required adjustment in the family's rent will be accomplished as follows: (1) when the public agency makes the first review of the family's income pursuant to section 6(c)(2) of the Act which occurs at least one year after rhe effective date of entering into such contract, the family's monthly rent will be increased by an amount equal to one-half the additional amount of rent which would then be required pursuant to section 9; and (2) the family's monthly rental charge will be increased to the full amount of the rental charge required under section 9 when the public housing agency makes its next review of the family's income. Increases in rentals for such families will be effective the first day of the month immediately following the month in which the public housing agency makes the review of family income.

EXEMPTION OF CERTAIN PROJECTS FROM RENTAL FORMULA

SEC. 203. The rental or income contribution provisions of the United States Housing Act of 1937, as amended by section 201 of this Act, shall not preclude (1) the use of special schedules of required payments as approved by the Secretary for participants in mutual help housing projects who contribute labor, land, or materials to the development of such projects, or (2) the continued use of special schedules of required payments as approved by the Secretary for home buyers occupancy in homeownership opportunity projects under lease-purchase type contracts on the effective date of title II of the Housing Consolidation and Simplification Act of 1971.

REPEAL OF SPECIFICATION REQUIREMENTS IN CONSTRUCTION CONTRACTS

SEC. 204. Section 815 of the Housing Act of 1954 is repealed.

RETROACTIVE EFFECT OF REPEAL OF SECTION 10(j)

SEC. 205. Section 206 (c) of the Housing Act of 1961 (Public Law 87-70, approved June 30, 1961; 75 Stat. 165) is amended by adding at the end thereof the following sentence: "The Secretary of Housing and Urban Development is authorized to agree with a public housing agency to the amendment of any annual contributions contract containing the provision prescribed in section 10(j), so as to delete such provision and waive any rights of the United States accrued or that may accrue under such provision."

AMENDMENT TO NATIONAL BANK ACT

SEC. 206. The sixth sentence of paragraph "Seventh" of section 5136 of the Revised Statutes, as amended (12 U.S.C. 24), is amended—

(1) by striking out wherever it appears therein "1421a (b) of title 42" and inserting in lieu thereof "6(f) of the United States Housing Act of 1937"; (2) by deleting before clause (1) the word "either";

(3) by deleting in clause (1) the parenthetical phrase "(which obligations shall have a maturity of not more than eighteen months)”;

(4) by deleting before clause (2) the word "or"; and

(5) by inserting before the colon before the first proviso the following: ", or (3) by a pledge of both annual contributions under an annual contributions contract containing the covenant by the Secretary which is authorized by section 6(f) of the United States Housing Act of 1937, and a loan under an agreement between the local public housing agency and the Secretary in which the public housing agency agrees to borrow from the Secretary, and the Secretary agrees to lend to the public housing agency, prior to the maturity of such obligations moneys in an amount which (together with any other moneys irrevocably committed under the annual contributions contract to the payment of principal and interest on such obligations) will suffice to provide for the payment when due of all installments of principal and interest on such obligations, which moneys under the terms of said agreement are required to be used for the purpose of paying the principal and interest on such obligations at their maturity".

AMENDMENT TO LANHAM ACT

SEC. 207. Section 606 of the Act of October 14, 1940, as amended (42 U.S.C. 1586), is amended by deleting in subsection (b) that part of the first sentence which follows the parenthetical phrase and all of the second sentence.

EFFECTIVE DATE OF TITLE II

SEC. 208. The provisions of title II of the Housing Consolidation and Simplification Act of 1971 shall be effective at such date or dates as the Secretary of Housing and Urban Development shall prescribe, but not later than six months after enactment thereof.

TITLE III-MISCELLANEOUS

ELIMINATION OF "BASE" REQUIREMENT IN MODEL CITIES PROGRAM

SEC. 301. (a) Section 105(c) of the Demonstration Cities and Metropolitan Development Act of 1966 is amended

(1) by inserting a period in the first sentence after the words "city demonstration agency" and striking out the remainder of that sentence; and

(2) by striking out the last sentence.

(b) Section 111(b) of such Act is amended by inserting a period in the second sentence after the words "less than 100,000" and striking out the remainder of that sentence.

LABOR STANDARDS EXCEPTION

SEC. 302. Section 1 of the Davis-Bacon Act, as amended (49 Stat. 1011), is amended by inserting before the period at the end thereof the following: ": Provided, That the provisions of this section shall not apply to a contract for the repair of a one- to four-family residence acquired by the Secretary of Housing and Urban Development under a contract of mortgage insurance if the aggregate amount of such repair contract is not in excess of $5,000.”

REMOVAL OF SUBLIMITATION ON LOANS TO HOSPITALS UNDER THE COLLEGE

HOUSING PROGRAM

SEC. 303. Section 401 (d) of the Housing Act of 1950 is amended by striking out the second proviso before the period in paragraph (1).

NEW COMMUNITY DEVELOPMENT CORPORATION

SEC. 304. The Housing and Urban Development Act of 1970 is amended by striking out the name "Community Development Corporation" wherever it occurs in that Act and inserting in lieu thereof "New Community Development Corporation".

AUTHORIZATION FOR COLLEGE HOUSING DEBT SERVICE GRANTS

SEC. 305. Section 401(f) (2) of the Housing Act of 1950 is amended by striking out "and by $12,000,000 on July 1, 1971" and inserting in lieu thereof "by $12,000,000 on July 1, 1971, and by such sums as may be necessary thereafter".

INTERSTATE LAND SALES FULL DISCLOSURE ACT

SEC. 306. Section 1403 of the Housing and Urban Development Act of 1968 is amended by adding at the end thereof the following new subsection:

"(c) The Secretary may from time to time, pursuant to rules and regulations issued by him, exempt from any provision of this title any person who holds in his name as a fiduciary the legal title to land with respect to which a statement of record is required to be filed by this title where the Secretary finds that the enforcement of this title with respect to such person is not necessary in the public interest or for the protection of purchasers."

FLOOD INSURANCE PREMIUM EQUALIZATION PAYMENTS

SEC. 307. Section 1334 of the National Flood Insurance Act of 1968 is amended by deleting subsection (b) and by redesignating subsection "(c)" as subsection “(b)”.

SURPLUS PROPERTY

SEC. 308. Section 414 of the Housing and Urban Development Act of 1969 is amended to read as follows:

"(a) Notwithstanding the provisions of the Federal Property and Administrative Services Act of 1949, any surplus real property within the meaning of such

Act may, in the discretion of the Administrator of General Services, be madeavailable at the request of the Secretary of Housing and Urban Development for disposition in accordance with a plan approved by him (1) for land development which is in furtherance of a new community development or a major development or redevelopment program having communitywide impact, or (2) for the provision of housing and related public, commercial, and industrial facilities. Property which is to be used for the provision of housing is authorized to be assigned to the Secretary for sale or lease by him at its market value or, in the case of property to be used in the provision of housing to be occupied by families or individuals of low or moderate income, at its fair value for use in the provision of such housing. Property which is to be used for other purposes approved in the plan may be disposed of by the Administrator in accordance with applicable law governing the disposition of surplus real property.

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[H.R. 8353, 92d Cong., first sess.]

A BILL To provide Federal revenues to State and local governments and afford them broad discretion in carrying out community development activities and to help States and localities to improve their decisionmaking and management capabilities

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 "Community Development Act of 1971".

TITLE I-URBAN COMMUNITY DEVELOPMENT

SHORT TITLE

SEC. 101. This title may be cited as the "Urban Community Development Revenue Sharing Act of 1971”.

STATEMENT OF FINDINGS AND PURPOSE

SEC. 102. (a) The Congress finds and declares that

(1) The Nation's welfare requires an improved system of Federal assistance for community development which will preserve and enhance the physical and social environment and improve the quality of life in the Nation.

(2) The delivery of effective community development programs and activities is essentially a local responsibility and there is a need to strengthen the capacity of units of general local government and States to deal with community problems relating to development, revitalization, and growth.

(3) The effectiveness of community development would be improved by making resources for such purposes available to units of general local government and States to use with broad discretion in evaluating their community development needs and allocating resources to meet those needs.

(4) The Federal Government should make available to units of general local government and States a wide range of assistance and support to improve the effectiveness of community development activities.

(b) It is therefore the purpose of this title to establish a flexible and improved system of Federal assistance by sharing Federal revenues designed to promote sound and equitable community development, revitalization, and growth. The Federal assistance is intended to be provided in support of community development activities which contribute to

(1) improving the quality, organization, and accessibility of public services for all citizens;

(2) the elimination and prevention of urban slums, blight, and deterioration;

(3) economic and desirable land uses;

(4) the provision of housing, particulary for low- and moderate-income individuals and families, sufficient to meet community needs and appropriately located in relation to community and commercial facilities and job opportunities;

(5) the development of properly planned community facilities and public improvements;

(6) the preservatioon or restoration of properties and areas of special value for historic reasons;

(7) the conservation and enhancement of both the natural and urban environment;

(8) the provision of adequate recreational opportunities; and

(9) increased order and efficiency in community development and revitalization through the application of well-considered priorities to the investment of Federal, State, and local resources.

DEFINITIONS

SEC. 103. (a) As used in this title

(1) The term "unit of general local government" means any city, municipality, county, town, township, parish, village, or other general purpose political subdivision of a State; a consortium of such units of general local government recognized by the Secretary; and the District of Columbia.

(2) The term "State" means any State of the United States; the Commonwealth of Puerto Rico; Guam; and the Virgin Islands.

(3) The term "metropolitan areas" means the standard metropolitan statistical areas, as established by the Office of Management and Budget.

(4) The term "metropolitan cities" means cities within metropolitan areas which are central cities of metropolitan areas, as defined and used by the Office of Management and Budget, or which are cities having a population of fifty thousand

or more.

(5) The term "population" means the total resident population based on data compiled by the United States Bureau of the Census and referable to the same point or period in time.

(6) The term "amount of poverty" means the number of persons (or alternatively, the number of families and unrelated individuals) whose incomes are below the poverty level, as determined pursuant to criteria provided by the Office of Management and Budget, and based on data referable to the same point or period in time.

(7) The term "amount of overcrowding" means the number of housing units with 1.01 or more persons per room based on data compiled by the United States Bureau of the Census and referable to the same point or period in time.

(8) The term "extent of housing deficiencies" means the number of housing units lacking some or all plumbing facilities based on data compiled by the United States Bureau of the Census and referable to the same point or period in time. (9) The term "Secretary" means the Secretary of Housing and Urban Development.

(b) Where appropriate, the definitions in subsection (a) shall be based on the most recent data compiled by the United States Bureau of the Census and the latest published reports of the Office of Management and Budget on the date of enactment of this Act and ninety days prior to the beginning of each subsequent fiscal year. The Secretary may by regulation change or otherwise modify the definitions in subsection (a) in order to reflect any change or modification thereof made subsequent to such date by the United States Bureau of the Census or the Office of Management ond Budget.

COMMUNITY DEVELOPMENT ACTIVITIES ELIGIBLE FOR ASSISTANCE

SEC. 104. (a) Community development activities assisted under this title may include

(1) acquisition of real property (including air rights, water rights, and other interests therein) which is (i) blighted, deteriorated, deteriorating, undeveloped, or inappropriately developed from the standpoint of sound community development and growth, (ii) necessary for the preservation or restoration of historic sites, the beautification of urban land, the conservation of open spaces, natural resources, and scenic areas, the provision of recreational opportunities, or the guidance of urban development, (iii) to be used for the provision of public works, facilities, and improvements eligible for assistance under this title, or (iv) for other public purposes; (2) relocation payments and assistance for individuals, families, businesses, and farm operations displaced by community development activities; (3) clearance, demolition, removal, and rehabilitation of buildings and improvements (including financing rehabilitation of privately owned properties when incidental to other activities);

(4) acquisition, construction, reconstruction, or installation of public works, facilities, and site or other improvements-including water and sewer facilities, neighborhood facilities, historic properties, utilities, streets, street lights, foundations and platforms for air right sites, pedestrian malls and walkways, parks, and playgrounds;

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