or facilities in the redevelopment area which are necessitated by the project or are of benefit primarily to the occupants thereof: Provided, That the development cost, or any part thereof, of any low-rent housing project undertaken by any public agency shall be excluded in computing the public redevelopment cost hereunder.

(e) The term "capital proceeds" shall comprise (1) the actual total sales prices of all land sold, (2) the actual total capital values used as the basis for determining rentals of all land leased, and (3) the capital values used as the basis for determining the amounts to be transferred to the project from other funds of the local public agency to compensate for any land retained by it for use in accordance with the redevelopment plan. The term "net capital proceeds" means the capital proceeds, less the capitalized value of local participation in the form of tax abatement to the extent that such tax abatement increases the capital proceeds that would otherwise have been derived from the project.

(f) The term "local participation" means assistance by a municipality or other public body toward the public cost of redevelopment, which assistance may be furnished through: (1) Capital donations to the project in the forms described in item (2) of paragraph (d) of this section; (2) capital assistance toward meeting the public redevelopment costs in the forms described in item (3) of paragraph (d) of this section; (3) cash donations to the local public agency for the purposes of the project; and (4) any periodic assistance which will increase the capital proceeds or net revenues which will be derived by the local public agency from the project, including any tax abatement (through freezing of assessments or otherwise) granted by or pursuant to State law as an incentive to development or redevelopment, computed at the capitalized value thereof: Provided, That the development cost, or any part thereof, of any low-rent housing project undertaken by any public agency, shall be excluded in computing the local participation

hereunder.

(g) The term "going Federal rate" means the annual rate of interest (or if there shall be two or more such rates of interest, the lowest thereof) specified in the most recently issued bonds of the Federal Government having a maturity of 20 years or more, determined in the case of loans or annual contributions, respectively, at the date the contract for such loans or contributions is made. Any contract hereafter made for annual contributions, loans, or both may be revised or superseded by a later contract, so that the going Federal rate, on the basis of which such annual contributions or interest rate on the loans or both, respectively, are fixed, shall mean the going Federal rate, as herein defined, on the date that such contract is revised or superseded by such later contract.

(h) The term "local public agency" means any State, county, municipality, or other governmental entity or public body which is authorized to undertake the project for which assistance is sought.

(i) The term "Administrator" means the National Housing Administrator.

LOCAL DETERMINATION OF NEED; MAXIMUM RELIANCE UPON PRIVATE

ENTERPRISE

SEC. 603. In order that aid to projects shall be based upon local determination of need, contracts for financial aid under this title shall be made only with a duly authorized local public agency and shall require that the redevelopment plan applicable to the project area be approved by the governing body of the locality in which the project area is situated (or by the planning commission or other public agency or board designated by such governing body or by State law). Such approval shall be required to include findings that

(1) The redevelopment area would not by private enterprise alone and without the aid sought be made available for development or redevelopment;

(2) The proposed land uses and building requirements in redevelopment areas in the locality will afford maximum opportunity to privately financed development or redevelopment consistent with the sound needs of the locality as a whole; and (3) The redevelopment plan is based upon a local survey and conforms to a comprehensive plan for the locality as a whole.

CONFORMITY TO LOCAL PLANNING

SEC. 604. (a) In order that projects shall conform to the locally approved redevelopment plan and be consistent with the interests of the locality as a whole, contracts for financial aid under this title shall require

(1) that the local public agency agree that when land that has been acquired by it in connection with a project is sold or leased, the terms of such sales or leases shall obligate the purchasers or lessees (i) to devote the land to

the use specified in the redevelopment plan for said land; (ii) to begin the building of their improvements within a reasonable time; (iii) to give preference in the selection of tenants for dwelling units built in the project area to families displaced therefrom because of clearance and redevelopment activity, who desire to live in such dwelling units and who will be able to pay rents or prices equal to rents or prices charged other families for similar or comparable dwelling units built as a part of the same redevelopment; and (iv) to comply with such other conditions as are necessary to carry out the purpose of this title; and

(2) that there be a feasible method for the temporary relocation of families living in the redevelopment area who are to be rehoused in new dwelling units built in the redevelopment area; and also that decent, safe, and sanitary dwellings equal in number to the families to be displaced from the project area, and not to be rehoused in new dwelling units to be built in the redevelopment area, be available to such displaced families at rents or prices within their reasonable ability to pay, and in areas not less desirable in regard to public utilities and public and commercial facilities than the area of displacement, and prior to the displacement of such families.

LOANS

SEC. 605. (a) The Administrator may make loans to local public agencies with respect to projects under this title to provide such agencies with funds for the undertaking of such projects prior to definitive financing thereof, which loans shall not exceed the project expenditures to be made by the local public agency. Upon definitive financing with respect to any project (which definitive financing shall be undertaken by the local public agency not later than five years following the date of the initial loan advance made by the Administrator for the acquisition of land), the Administrator may make loans for such project only with respect to any land which may be leased for redevelopment by the local public agency and only to the extent that the Administrator finds that loans payable from rentals of such leased land cannot be obtained from sources other than the Federal Government at sufficiently low interest rates for the purposes of this title; such loans by the Administrator shall not exceed an amount equal to the actual total capital values used as the basis for determining rentals of such leased land and shall not be made for a period exceeding forty-five years from the date of the bonds evidencing such loan. All loans by the Administrator hereunder shall bear interest at such rate not less than the applicable going Federal rate and shall be secured in such manner as may be deemed advisable by the Administrator. (b) To obtain funds for the loan purposes of this title, the Administrator may issue and have outstanding at any one time obligations in an amount not to exceed $500,000,000: Provided, That such funds shall be used only to make loans to local public agencies to finance the undertaking of projects prior to definitive financing thereof, except that definitive loans of the character described in paragraph (a) of this section may be made from such funds in an amount outstanding not to exceed $50,000,000 on and after the date of enactment of this title, which limit on such outstanding amount of definitive financing by the Administrator shall be increased by further amounts of $50,000,000 at the beginning of each of the second, third, fourth, and fifth years, respectively, from such date.

CONTRIBUTIONS WHERE NECESSARY

SEC. 606. (a) Where the Administrator finds that assistance in the form of annual contributions is necessary to carry out the purposes hereof, he may enter into contracts to make annual contributions to local public agencies to enable them to make the land in projects available for redevelopment as its fair value for the uses specified in the redevelopment plans.

(b) Federal annual contributions shall be strictly limited to the amounts and periods necessary to carry out the purposes of this title. In no case shall any contract for annual contributions be made for a period exceeding forty-five years from the date the first annual contribution is paid. Contributions payable annually under any contract shall, in no case, exceed an amount equal to the annual yield, at the applicable going Federal rate, plus 1 per centum, upon an annual contribution base which shall not exceed an amount representing the public redevelopment cost less the net capital proceeds and less the local participation: Provided, That with respect to all the projects of a local public agency on which contracts have been made under this title, the aggregate annual contribution bases shall not exceed two-thirds of the aggregate public redevelopment cost involved, less the net capital proceeds of the projects involved (the balance

of such public redevelopment cost to be furnished as local participation, has hereinafter provided). All payments of annual contributions pursuant to this title shall be made out of any funds available under this title to the Administrator when such payments are due, except that funds obtained through the issuance of obligations pursuant to section 605 (b) (including repayments or other realizations of the principal of loans made out of such funds) shall not be available for payment of such annual contributions. The faith of the United States is solemnly pledged to the payment of all annual contributions contracted for pursuant to this title, and there is hereby authorized to be appropriated in each fiscal year, out of any money in the Treasury not otherwise appropriated, the amounts necessary to provide for such payments. Payments under annual contributions contracts may be pledged as security for any loans obtained by a local public agency to assist the project to which the annual contributions relate.

(c) Whenever in any year the receipts of a local public agency in connection with a project exceed its expenditures (including debt service, administration, establishment of reserves, and other costs), an amount equal to such excess shall be applied, or set aside for application, to purposes which will effect a reduction in the amount of subsequent annual contributions. If, before the expiration of the contract, the need for annual contributions has ceased, any such excess shall be applied to repay annual contributions theretofore made with respect to the project.

(d) With respect to projects to be assisted pursuant to this title, the Administrator is authorized, on and after the date of the enactment of this title, to enter into contracts which provide for annual contributions aggregating not more than $4,000,000 per annum, which limit shall be increased by further amounts of $4,000,000 at the beginning of each of the second, third, fourth, and fifth years, respectively, after such date: Provided, That any parts of the authorization contained in this section and of the loan authorization contained in section 605 (b) may be made available at earlier dates than are provided in said sections upon a determination by the President (which shall be transmitted in a message to the Congress) that such acceleration is necessary to make land available to meet acute shortages of adequate housing, including housing for the families of servicemen and veterans who are in need of such housing, or to stimulate employment and business activity.

(e) Every contract for Federal annual contributions under this title shall provide that at any time after ten years following the issuance of definitive bonds to finance the project, the Administrator shall have the right to pay to the local public agency a lump sum (in the event that legislation is hereafter enacted making funds available therefor) computed at the capitalized value of the annual contributions otherwise remaining to be paid under the contract in lieu of continuing further payments of annual contributions: Provided, That such lump-sum payment shall not be less than an amount sufficient to redeem or pay the outstanding obligations to which such annual contributions have been pledged.

EQUAL AID FOR PRIVATE ENTERPRISE DEVELOPMENTS

SEC. 607. In order that aid under this title to make land available for redevelopment in part by private enterprise shall be comparable to aid made available under the United States Housing Act of 1937 for land acquisition in connection with low-rent public housing

(1) All the provisions relating to obligations issued under the authorization contained in section 20 of the United States Housing Act of 1937, as amended, shall also apply to the obligations authorized under this title;

(2) The provisions of paragraphs (a) and (b) of the new section 22 of the United States Housing Act of 1937, enacted by section 704 of this Act and designed to facilitate the local enlistment of private capital, shall apply also in the case of projects under this title: Provided, That the term "Authority" in such provisions shall mean the National Housing Administrator and the term "Act" shall mean the General Housing Act of 1945 for the purposes of this title;

(3) Obligations, including interest thereon, issued by local public agencies for projects undertaken pursuant to this title, and the income derived by such agencies from such projects, shall be free from taxation by the United States to the same extent as obligations issued by local public agencies for low-rent housing and income derived by such agencies from such housing;

(4) When the land for a low-rent housing project assisted under the United States Housing Act of 1937, as amended, is made available from a project assisted under this title, payment equal to the fair value of the land for such use shall be

made therefor by the local public agency undertaking the housing project, and such amount shall be included as part of the development cost of the low-rent housing project.

REQUIREMENTS FOR LOCAL PARTICIPATION

SEC. 608. In order to encourage local participation in projects

(a) Every contract for loans or annual contributions under this title shall require that the net capital proceeds from the project involved and the local participation, together with the net capital proceeds with respect to all other projects of the local public agency on which such contracts have theretofore been made hereunder and the local participation in connection therewith, will be at least equal to one-half of the aggregate public redevelopment cost of the redevelopment areas involved (excluding the cost of the old buildings destroyed and the demolition and clearance thereof);

(b) Every contract for Federal annual contributions under this title shall require local participation by the municipality or other public bodies in connection with the project involved which, together with the value of the local participation to be provided in connection with all other projects of the local public agency on which such contracts have theretofore been made, will be at least equal to onehalf of the aggregate annual contribution bases of all such projects of the local public agency involved.

PROTECTION OF LABOR STANDARDS

SEC. 609. In order to protect labor standards

(1) Any contract for loans or annual contributions pursuant to this title 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 Secretary of Labor, shall be paid to all those employed in the development of the project involved; and the Administrator may require certification as to compliance with the provisions of this paragraph prior to making any payment under such contract.

(2) The provisions of sections 1 and 2 of the Act of June 13, 1934 (U. S. C., 1940 edition, title 40, secs. 276B and 276C), shall apply to any project financed in whole or in part with funds made available pursuant to this title.

(3) Any contractor engaged on any project financed in whole or in part with funds made available pursuant to this title 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 furnished 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.

GENERAL POWERS

SEC. 610. (a) In the performance of the functions, duties, and powers vested in him by this title, the Administrator may—

(1) Sue and be sued;

(2) Notwithstanding the provisions of any other law, foreclose on any property or commence any action to protect or enforce any right conferred upon him by any law, contract, or other agreement, and bid for and purchase at any foreclosure or any other sale any project in connection with which he has made a loan or annual contribution pursuant to this title. In the event of such acquisition of any such project, the Administrator may complete, administer, dispose of, and otherwise deal with, such project or part thereof: Provided, That any such acquisition of real property shall not deprive any State or political subdivision thereof of its civil jurisdiction in and over such property or impair the civil rights under the State or local law of the inhabitants on such property;

(3) Enter into agreements to pay annual sums in lieu of taxes to any State or political subdivision thereof with respect to any real property so acquired and owned;

(4) Notwithstanding the provisions of any other law, sell or exchange at public or private sale, or lease, real or personal property, and sell or exchange any securities or obligations, upon such terms as he may fix;

(5) Obtain insurance against loss in connection with property and other assets held;

(6) Subject to the specific limitations in this title, consent to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, security, amount of annual contribution, or any other term, of any contract or agreement to which he is a party or which has been transferred to him pursuant to this title.

(b) Section 3709 of the Revised Statutes shall not apply to any contract for services or supplies on account of any property acquired pursuant to this section if the amount of such contract does not exceed $1,000.

(c) Such financial transactions of the Administrator as the making of loans and annual contributions, and the acquisition, sale, exchange, lease, or other disposition of real and personal property, and vouchers approved by the Administrator in connection with such financial transactions, shall be final and conclusive upon all officers of the Government; except that all such financial transactions shall be audited by the General Accounting Office at such times and in such manner as the Comptroller General of the United States may by regulation prescribe.

(d) The Administrator may include in any contract or instrument made pursuant to this title such other covenants, conditions, or provisions as he may deem necessary to assure that the purposes of this title will be achieved. No provision of this title shall be construed or administered to permit speculation in land holding.

(e) The Administrator shall appoint a Director (with an appropriate title) to carry out under his general supervision the provisions of this title.

SEC. 611. The President may at any time in his discretion transfer to the Administrator any right, title, or interest held by any department or agency of the Federal Government in any land (including buildings thereon) which is surplus to the needs of the Government and which a local public agency certifies will be within the area of a project being planned by it. When such land is sold to the local public agency by the Administrator to enable such agency to carry out a project under this title, it may be sold at a price equal to its fair value for the use specified in accordance with the redevelopment plan.

TITLE VII-AID TO LOCALITIES FOR LOW-RENT HOUSING LOCAL DETERMINATION OF NEED; TENANCY ONLY BY LOW-INCOME FAMILIES SEC. 701. Aid shall be extended for low-rent housing to those localities which assume community responsibility and initiative in estimating their own needs and demonstrating that their needs cannot fully be met through reliance solely upon private enterprise and without such aid. Toward this end, the United States Housing Act of 1937, as amended, is hereby amended by adding the following additional subsections to section 15 thereof:

"(6) In recognition that there should be local determination of the need for public low-rent housing, the Authority shall not make any contract for financial assistance pursuant to this title with respect to any urban low-rent housing hereafter initiated unless the local public agency has submitted an analysis of the local housing market demonstrating to the satisfaction of the Authority

(i) that there is a need for such low-rent housing which cannot be met by private enterprise; and

(ii) that a gap of at least 20 per centum has been left between the upper rental limits for admission to the proposed low-rent housing and the lowest rents at which private enterprise is providing (through new construction and existing structures) a substntial supply of decent, safe, and sanitary housing; and unless the governing body of the locality involved has approved the provision of such low-rent housing.

"(7) Every contract made pursuant to this title for annual contributions for urban low-rent housing projects hereafter initiated shall provide that a duly authorized official of the local public agency involved shall make periodic written statements to the Authority that an investigation has been made of each family admitted to the low-rent housing project involved during the period covered thereby, and that, on the basis of the report of said investigation, he has found that each such family at the time of its admission (a) lived in an unsafe, insanitary, or overcrowded dwelling or had been displaced by a slum-clearance project or by off-site elimination