isiti GENERAL POWERS OF THE AUTHORITY SEC. 13. (a) The Authority may foreclose on any prop- General erty or commence any action to protect or enforce any powers of the Dose right conferred upon it by any law, contract, or other Authority. y lo agreement. The Authority may bid for and purchase or a at any foreclosure by any party or at any other sale, or Foreclosure. ing otherwise acquire, and may administer, any low-rentder housing project which it previously owned or in connecand tion with which it has made a loan pursuant to section 9, o pr annual contributions pursuant to section 10, or capital rati grants pursuant to section 11. (b) The acquisition by the Authority of any real propelli erty pursuant to this Act shall not deprive any State met or political subdivision thereof of its civil and criminal jurisdiction in and over such property, or impair the ly civil rights under the State or local law of the inhabitfor ants on such property; and, insofar as any such jurisry diction may have been taken away or any such rights A impaired by reason of the acquisition of any property t fe transferred to the Authority pursuant to section 4 (d), such jurisdiction and such rights are hereby fully restored. an mere an Civil and criminal ju risdiction. (c) The Authority may enter into agreements to pay Payments in de annual sums in lieu of taxes to any State or political lieu of taxes. ha subdivision thereof with respect to any real property owned by the Authority. The amount so paid for any year upon any such property shall not exceed the taxes that would be paid to the State or subdivision, as the case may be, upon such property if it were not exempt from taxation thereby. or no th me ent (d) The Authority may procure insurance against Insurance. any loss in connection with its property and other assets in (including mortgages), in such amounts, and from such insurers, as it deems desirable. ra property. (e) The Authority may sell or exchange at public or Sale or lease private sale, or lease, any real property (except low-rent- of non-project housing projects, the disposition of which is governed elsewhere in this Act) or personal property, and sell or exchange any securities or obligations, upon such terms as it may fix. The Authority may borrow on the security of real or personal property owned by it, or on the any security of the revenues to be derived therefrom, and may use the proceeds of such loans for the purposes of this Act. of contracts. SEC. 14. Subject to the specific limitations or standards Modification in this Act governing the terms of sales, rentals, leases, loans, contracts for annual contributions, contracts for capital grants, or other agreements, the Authority may, whenever it deems it necessary or desirable in the fulfillment of the purposes of this Act, consent to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, security, amount Preservation of annual contribution, or any other term, of any contract or agreement of any kind to which the Authority is a party or which has been transferred to it pursuant to this Act. Any rule of law contrary to this provision shall be deemed inapplicable. SEC. 15. In order to insure that the low-rent character of low rentals. of housing projects will be preserved, and that the other purposes of this Act will be achieved, it is hereby provided that Increase of interest rate for breach of against alien ation of lowrent housing project. condition Increase of interest rate for breach of condition against alien ation of slum clearance project. Reduction or termination of annual contributions. Insertion of other covenants. (1) When a loan is made pursuant to section 9 for a low-rent-housing project the Authority may retain the right, in the event of a substantial breach of the condition (which shall be embodied in the loan agreement) providing for the maintenance of the low-rent character of the housing project involved or in the event of the acquisition of such project by a third party in any manner including a bona-fide foreclosure under a mortgage or other lien held by a third party, to increase the interest payable thereafter on the balance of said loan then held by the Authority to a rate not in excess of the going Federal rate (at the time of such breach or acquisition) plus 2 per centum per annum or to declare the unpaid principal on said loan due forthwith. (2) When a loan is made pursuant to section 9 for a slum-clearance project the Authority shall retain the right, in the event of the leasing or acquisition of such project by a third party in any manner including a bonafide foreclosure under a mortgage or other lien held by a third party, to increase the interest payable thereafter on the balance of said loan then held by the Authority to a rate not in excess of the going Federal rate (at the time of such leasing or acquisition) plus 2 per centum per annum or to declare the unpaid principal on said loan due forthwith. (3) When a contract for annual contributions is made pursuant to section 10, the Authority shall retain the right, in the event of a substantial breach of the condition (which shall be embodied in such contract) providing for the maintenance of the low-rent character of the housing project involved, to reduce or terminate the annual contributions payable under such contract. In the event of the acquisition of such project by a third party in any manner including a bona-fide foreclosure under a mortgage or other lien held by a third party, such annual contributions shall terminate. (4) The Authority may also insert in any contract for loans, annual contributions, capital grants, sale, lease, mortgage, or any other agreement or instrument made pursuant to this Act, such other convenants, conditions, or provisions at it may deem necessary in order to insure 'Probably should be "as." e low-rent character of the housing project involved: rovided, That any such contract for a substantial loan ay contain a condition requiring the maintenance of an pen space or playground in connection with the housing roject involved if deemed necessary by the Authority r the safety or health of children. costs. (5) No contract for any loan, annual contribution, or Limitations pital grant made pursuant to this Act shall be entered on room and to by the Authority with respect to any project here- dwelling unit fter initiated costing more than $4,000 per family-dwellg-unit or more than $1,000 per room (excluding land, emolition, and non-dwelling facilities); except that in my city the population of which exceeds 500,000 any such ontract may be entered into with respect to a project ereafter initiated costing not to exceed $5,000 per famy-dwelling-unit or not to exceed $1,250 per room (exluding land, demolition, and non-dwelling facilities), if the opinion of the Authority such higher family-dwellng-unit cost or cost per room is justified by reason of igher costs of labor and materials and other construcion costs. With respect to housing projects on which onstruction is hereafter initiated, the Authority shall nake loans, grants, and annual contributions only for uch low-rent-housing projects as it finds are to be underaken in such a manner (a) that such projects will not be of elaborate or expensive design or materials, and econony will be promoted both in construction and adminisration, and (b) that the average construction cost of the welling units (excluding land, demolition, and nonwelling facilities) in any such project is not greater han the average construction cost of dwelling units curently produced by private enterprise, in the locality or metropolitan area concerned, under the legal building requirements applicable to the proposed site, and under abor standards not lower than those prescribed in this Act. SEC. 16. In order to protect labor standards— Labor protec Wages and bonds on Federal projects. (1) The provisions of the Act of August 30, 1935, tion. entitled "An Act to amend the Act approved March 3, 1931, relating to the rate of wages for laborers and mechanics employed by contractors and subcontractors on public buildings" (49 Stat. 1011 10), and of the Act of August 24, 1935, entitled "An Act requiring contracts for the construction, alteration, and repair of any public building or public work of the United States to be accompanied by a performance bond protecting the United States and by an additional bond for the protection of persons furnishing material and labor for the construction, alteration, or repair of said public buildings or public work" (U. S. C., 1934 edition, Supp. II, title 40, secs. 270a to 270d, inclusive 11), shall apply to contracts 10 See Appendix VI, p. 28. "See Appendix VII, p. 30. Prevailing wage rates. Hours of work on Fed in connection with the development or administration of Federal projects and the furnishing of materials and labor for such projects: Provided, That suits shall be brought in the name of the Authority and that the Authority shall itself perform the duties prescribed by section 3 (a) of the Act of August 30, 1935, and section 3 of the Act of August 24, 1935. (2) Any contract for loans, annual contributions, capital grants, sale, or lease pursuant to this Act shall contain a provision requiring that the wages or fees prevailing in the locality, as determined or adopted (subsequent to a determination under applicable State or local law) by the Authority, shall be paid to all architects, technical engineers, draftsmen, technicians, laborers, and mechanics employed in the development or administration of the low-rent housing or slum-clearance project involved; and the Authority may require certification as to compliance with the provisions of this paragraph prior to making any payment under such contract. (3) The Act entitled "An Act limiting the hours of eral projects. daily services of laborers and mechanics employed upon work done for the United States, or for any Territory, or for the District of Columbia, and for other purposes" as amended (37 Stat. 137 12, shall apply to contracts of the Authority for work in connection with the development and administration of Federal projects. Workmen's compensation. Kick-back statute. Reports to (4) The benefits of the Act entitled "An Act to provide compensation for employees of United States suffering injuries while in the performance of their duties, and for other purposes" (39 Stat. 742 183), shall extend to officers and employees of the Authority. (5) The provisions of sections 1 and 2 of the Act of June 13, 1934 (U. S. C., 1934 edition, title 40, secs. 276b and 276c 14), shall apply to any low-rent-housing or slum-clearance project financed in whole or in part with funds made available pursuant to this Act. (6) Any contractor engaged on any project financed in whole or in part with funds made available pursuant to this Act shall report monthly to the Secretary of Labor, and shall cause all subcontractors to report in like manner (within five days after the close of each calendar month, on forms to be furnish d by the United States Department of Labor), as to the number of persons on their respective pay rolls on the particular project, the aggregate amount of such pay rolls, the total man-hours worked, and itemized expenditures for materials. Any such contractor shall furnish to the Department of Labor the names and addresses of all subcontractors on the work at the earliest date practicable. FINANCIAL PROVISIONS SEC. 17. The Authority shall have a capital stock of Financial $1,000,000, which shall be subscribed by the United States provisions. and paid by the Secretary of the Treasury out of any available funds." Receipts for such payment shall be issued to the Secretary of the Treasury by the Authority Capital stock. and shall evidence the stock ownership of the United States of America. ized. SEC. 18. There is hereby authorized to be appropriated, Appropriaout of any money in the Treasury not otherwise appro- tion authorpriated, the sum of $26,000,000 for the fiscal year ending June 30, 1938, of which $1,000,000 shall be available to pay the subscription to the capital stock of the Authority. Such sum, and all receipts and assets of the Authority, shall be available for the purposes of this Act until expended. other funds SEC. 19. Any funds available under any Act of Con- Allocation of for allocation for housing or slum clearance may, gress in the discretion of the President, be allocated to the Authority for the purposes of this Act. ity. terms and amount. SEC. 20. (a) The Authority is authorized to issue ob- Obligations ligations in the form of notes, bonds, or otherwise, by Authority: which it may sell to obtain funds for the purposes of this Act. The Authority may issue such obligations in an amount not to exceed $800,000,000. Such obligations shall be in such forms and denominations, mature within such periods not exceeding sixty years from date of issue, bear such rates of interest not exceeding 4 per centum per annum, be subject to such terms and conditions, and be issued in such manner and sold at such prices as may be prescribed by the Authority with the approval of the Secretary of the Treasury.16 (b) Such obligations shall be exempt, both as to principal and interest, from all taxation (except surtaxes, estate, inheritance, and gift taxes) now or hereafter imposed by the United States or by any State, county, inunicipality, or local taxing authority. 15 See Appendix XI, p. 42. 16 As amended by Section 602 of the United States Housing Act Amendments of 1938 (Public Resolution, No. 122, 75th Cong.). Section 20 (a) originally read as follows: "SEC. 20. (a) The Authority is authorized to issue obligations, in the form of notes, bonds, or otherwise, which it may sell to obtain funds for the purposes of this Act. The Authority may issue such obligations in an amount not to exceed $100,000,000 on or after the date of enactment of this Act, an additional amount not to exceed $200,000,000 on or after July 1, 1938, and an additional amount not to exceed $200,000,000 on or after July 1, 1939. Such obligations shall be in such forms and denominations, mature within such periods not exceeding sixty years from date of issue, bear such rates of interest not exceeding 4 per centurm per annum, be subject to such terms and conditions, and be issued in such manner and sold at such prices as may be prescribed by the Authority, with the approval of the Secretary of the Treasury." Same: exempt from taxation. |