6. Control of rents (a) Alabama: The statute provides that it shall be unlawful for any person, firm, or corporation purchasing from a redevelopment agency any land for housing project purposes to rent any dwelling accommodations contained therein to any person whose gross annual income exceeds $1,500." (b) California: No specific statutory reference. (e) Illinois: No specific statutory reference, but see provisions of the law applicable to lessees or grantees enumerated under 1, supra, of this section IX; also, provisions of the “Housing Authorities Act" relating to rents of low-income persons. (f) Indiana: No specific reference is made to rents other than that the commissioners in offering property for sale or lease shall consider "proposed sale or rental prices" of the lessees or purchasers, including any factors which will assure the carrying out of the redevelopment plan. Maryland: No specific statutory reference. (h) Michigan: No specific statutory reference. (i) New York: No specific statutory reference. (5) Pennsylvania: The statute makes no specific reference to rents, but states that the contract with the developer shall contain such controls as may be deemed necessary to carry out the purposes of the statute. (k) Wisconsin: In the event that maximum rentals to be charged to tenants of housing are specified in lease or sale agreements, provision may be made for periodic reconsideration of such rental bases. Redevelopment plans may specify maximum rentals of any housing proposed to be provided. 7. Investment of funds (a) Alabama: A redevelopment agency may invest any of its funds not required for immediate disbursement in property or facilities in which savings banks may legally invest funds subject to their control. (b) California: A redevelopment agency may invest any of its funds in property or facilities in which savings banks may legally invest, and may purchase its bonds at a price not more than the principal amount thereof and accrued interest. (c) Colorado: No specific statutory reference. (d) Connecticut: No specific statutory reference. (e) Illinois: See Housing Authorities Act, approved May 8, 1945. However, the statute provides that "no housing authority nor land clearance commission shall reinvest or use any funds arising from the rental, sale or exchange of any property acquired with funds appropriated under this act except with the approval of the State housing board." (f) Indiana: No specific statutory reference. (i) New York: No specific statutory reference. Pennsylvania: An authority may invest its funds in such investments as may be lawful for executors, administrators, guardians, trustees, and other fiduciaries under the laws of the Commonwealth. (k) Wisconsin: No specific statutory reference. X. PROVISION FOR DISPLACED PERSONS (a) Alabama: The statute provides that in planning an area for redevelopment "there shall be no obligation upon the agency to provide equivalent housing or any housing for persons formerly residing in such area." (b) California: If the redevelopment plan provides for the displacement of any occupants of housing facilities in the area, the legislative body shall not approve it except upon the finding that adequate housing facilities are or will be made available in the community for such displaced occupants at rents comparable to those existing at the time of their displacement. The legislative body shall further be satisfied that, with respect to permanent housing facilities, other such facilities shall be made available within 3 years from the time such occupants shall be displaced and that temporary housing facilities will be made available at the time of their displacement. If persons of low income (as defined in the housing authority law) are displaced, the legislative body shall, prior to its approval of the plan, obtain and consider the recommendations of the housing authority, if any, with respect to the availability and provision of adequate housing for such persons. (c) Colorado: No specific statutory reference. (d) Connecticut: The statute states that a redevelopment agency may approve a redevelopment plan if it finds, among other things, "sufficient living accommodations are available within a reasonable distance of such area or are provided for in the redevelopment plan for families displaced by the proposed improvement, at prices or rentals within the financial reach of such families." (e) Illinois: No specific statutory reference. (f) Indiana: The statute provides that in determining the location and extent of blighted areas proposed to be acquired, the commissioners and the plan commission "shall give consideration to transitional and permanent provisions for adequate housing" for displaced residents. (g) Maryland: No specific statutory reference. * (h) Michigan: The statute reads: "No resident-owner in a development area shall be dispossessed after condemnation * * * until other adequate housing accommodations are provided It also provides that a redevelopment plan shall designate "provision for the relocation of the people living in the area." (i) New York: No specific statutory reference. (3) Pennsylvania: The statute provides that a redevelopment area plan shall contain a statement of the extent and effect of the rehousing of families which may be made necessary by the redevelopment and the manner in which such rehousing may be accomplished; that the governing body shall not approve a redevelopment proposal unless it is satisfied that adequate provisions will be made to rehouse displaced families without undue hardship; and that the Authority may reimburse displaced occupants for their reasonable expenses of removal. (k) Wisconsin: The statute provides that in connection with every redevelopment plan the housing authority shall formulate a feasible method for the temporary relocation of displaced persons, and, in addition, the housing authority and the local legislative body "will assure that decent, safe and sanitary dwellings substantially equal in number to the number of substandard dwellings to be removed" are available, or will be provided at rents or prices within the financial reach of the income groups displaced. XI. ELIGIBILITY of OBLIGATIONS OF redevelopMENT AGENCIES FOR PRIVATE AND PUBLIC INVESTMENT (a) Alabama: The statute authorizes all persons, firms, corporations, associations, political subdivisions, bodies, and officers, public or private, to use any fund owned or controlled by them, including (but not limited to) sinking funds, insurance, investment, retirement, compensation, pension and trust funds, and funds held on deposit, for the purchase of any bonds or other obligations of a redevelopment agency. (b) California: The statute authorizes all persons, firms, corporations, associa tions, political subdivisions, bodies, and officers, public or private, to use any funds owned or controlled by them, including (but not limited to) sinking funds, insurance, investment, retirement, compensation, pension and trust funds, and funds held on deposit, for the purchase of any bonds or other obligations of a redevelopment agency. (c) Colorado: No specific statutory reference. (d) Connecticut: No specific statutory reference. (i) New York: No specific statutory reference. (3) Pennsylvania: The statute does not set forth any list of funds eligible for investment in obligations of an authority, but bonds are declared to have all the qualities of negotiable instruments. (k) Wisconsin: No specific statutory reference. PART III COMPARATIVE ANALYSIS OF PRINCIPAL PROVISIONS OF STATE LEGISLATION RELATING TO URBAN REDEVELOPMENT BY LOCAL HOUSING AUTHORITIES 10 Four States-Arkansas, Florida, Illinois, and Tennessee-have passed legislation" designating local housing authorities as the local public body to engage in urban redevelopment activities.12 The Illinois statute merely amends the eminent domain section of the Housing Authorities Act by providing that the power of eminent domain shall apply not only to improved or unimproved property which may be acquired for or as incident to the development or operation of a project or projects, but also to any improved or unimproved property the acquisition of which is necessary or appropriate for the rehabilitation or redevelopment of any blighted or slum area. defining such an area, the statute states that it must be "an area of not less in the aggregate than 2 acres which has been designated by municipal ordinance or by the authority as an integrated project for rehabilitation or redevelopment." In The amendment further provides that a housing authority "shall have power to hold or use any such property for uses authorized by this act, or to sell, lease, or exchange such property as is not required for such uses by the authority." The statutes of Arkansas, Florida, and Tennessee are identical in providing that General powers.-Any housing authority now or hereafter established pursuant to the State housing laws may carry out redevelopment projects (1) to acquire blighted areas; (2) to acquire other real property for the purpose of removing, preventing, or reducing blight, blighting factors or the causes of blight, and where the acquisition of the area is necessary to carry out a redevelopment plan; (3) to clear any areas acquired and install, construct, or reconstruct streets, utilities, and site improvements essential to the preparation of sites for uses in accordance with redevelopment plans; (4) to sell or lease land so acquired for uses in connection with the redevelopment plan; or (5) to accomplish a combination of the foregoing to carry out a redevelopment plan. In undertaking such redevelopment projects, a housing authority shall have all the rights, powers, privileges, and immunities that such authority has under the State housing laws relating to slum clearance and housing projects for persons of low income (including, without limiting the generality of the foregoing, the power to make and execute contracts, to issue debentures and give security therefor, to acquire real property by eminent domain or purchase, and to do any and all things necessary to carry out projects) in the same manner as though all provisions of the State housing laws applicable to slum clearance and housing projects were applicable to redevelopment projects undertaken under these statutes; provided, that nothing contained in the housing laws shall be constructed as limiting the general power of an authority, in the event of a default by a purchaser or lessee of land in a redevelopment area, to acquire property and operate it free from restrictions with respect to tenant selection and operation for profit. Redevelopment plan.-No redevelopment project shall be initiated until the governing body in which areas to be redeveloped are situated has approved a redevelopment plan which provides an outline for the development or redevelopment of the area and is sufficiently complete (1) to indicate its relationship to definite local objectives as to appropriate land uses and improved traffic, transportation, public services, recreational and community facilities, and other public improvements; (2) to indicate proposed land uses and building requirements; and (3) to indicate the method for the temporary relocation of persons living in such areas; and also the method of providing (unless already available) decent, safe, and sanitary dwellings substantially equal in number to the number of substandard dwellings to be cleared from the area, at rents within the financial reach of the income groups displaced from such substandard dwellings. Re-use value of land.-Land in a redevelopment project may be made available by a housing authority for use by private enterprise or public agencies at its reuse value, which represents the value (whether expressed in terms of rental or capital price) at which the authority determines such land should be made available in 10 Since the statutes in this part relate to public-housing authorities, they should be read in connection with the State housing enabling acts under or by which such authorities are created. 11 Arkansas: Act No. 212 of 1945; Florida: Ch. 23077, Florida Statutes of 1945; Illinois: Senate bill No. 204, Laws of 1945; and Tennessee: Public Acts of 1945, ch. 114. 1 See, also, the statutes of Connecticut, Illinois, and Wisconsin referred to in pt. II which also authorize public-housing authorities, among other public bodies and agencies, to undertake redevelopment projects under the scheme there set forth. order that it may be developed or redeveloped for the purposes specified in the redevelopment plan. Control of land use. To assure that land will be used in accordance with the redevelopment plan, housing authorities, upon its sale or lease, shall obligate purchasers or lessees (1) to use the land for the purpose designated in the redevelopment plan; (2) to begin redevelopment within a time fixed by the authorities as reasonable; and (3) to comply with such other conditions as are necessary to carry out the purposes of the redevelopment statutes. Any such obligations shall be covenants and conditions running with the land where the authorities so stipulate. Cooperation by State public bodies.-State public bodies shall have the same rights and powers to cooperate with and assist housing authorities with respect to redevelopment projects that they have pursuant to State housing cooperation laws for the purpose of assisting in the development or administration of slum clearance and housing projects. Federal financial assistance.-Housing authorities may borrow money or accept contributions from the Federal Government to assist in undertaking redevelopment projects, and may do any and all things necessary or desirable to secure such financial aid, including obligating themselves to convey to the Federal Government the project upon the occurrance of a substantial default under any contract for annual contributions. Investments.-Bonds or other obligations issued by housing authorities in connection with redevelopment projects shall be legal investments to the same extent and for the same persons, institutions, associations, corporations, and other bodies and officers as bonds issued pursuant to the State housing laws in connection with the development of slum clearance or housing projects. The pattern of the statutes of these States varies to the extent that while the Arkansas statute is silent: Taxation. The statutes of Florida and Tennessee provide that any property leased to private individuals or corporations shall have the same tax status as if it were privately owned. Advisory boards.-The statutes of Florida and Tennessee provide that for the purpose of coordinating redevelopment activities and undertakings with the needs and undertakings of other local organizations and groups, housing authorities may establish advisory boards to represent the general public and consumers of housing; general business interests; real-estate, building, and home interests; labor; official planning body; church and welfare groups; or any part or combination of these groups. Under the Florida statute, housing authorities are authorized to perform redevelopment functions only in municipalities having a population of not less than 60,000. EXECUTIVE ORDER No. 9070 CONSOLIDATING THE HOUSING AGENCIES AND FUNCTIONS OF THE GOVERNMENT INTO THE NATIONAL HOUSING AGENCY By virtue of the authority vested in me by Title I of the First War Powers Act, 1941, approved December 18, 1941 (Public Law 354, 77th Congress), and as President of the United States, it is hereby ordered as follows. 1. The following agencies, functions, duties, and powers are consclidated into a National Housing Agency and shall be administered as hereinafter provided under the direction and supervision of a National Housing Administrator. (a) The Federal Housing Administration and its functions, powers, and duties, including those of the Administrator thereof. (b) All functions, powers, and duties of the Federal Home Loan Bank Board and of its members. (c) The Home Owners' Loan Corporation and the functions, powers, and duties of its Board of Directors. (d) The Federal Savings and Loan Insurance Corporation and the functions, powers, and duties of its Board of Trustees. (e) The United States Housing Authority and its functions, powers, and duties, including those of the Administrator thereof. (f) All functions, powers, and duties relating to defense housing of (1) the Federal Works Administrator under the act of October 14, 1940, entitled "An Act to expedite the provision of housing in connection with national defense, and for other purposes," as amended, and under acts making appropriations to carry out the purposes of said act, (2) the War Department and the Navy Department with respect to housing units for persons (with families) engaged in national defense activities (except housing units located on military or naval reservations, posts, or bases) under Title IV of the Naval Appropriation Act for the fiscal year 1941, and (3) any agencies heretofore designated (including the Federal Works Agency and the Farm Security Administration) to provide temporary shelter in defense areas under the Urgent Deficiency Appropriation Act, 1941, and the Additional Urgent Deficiency Appropriation Act, 1941, and the Third Supplemental National Defense Appropriation Act, 1942. (g) All functions, powers, and duties of the Farm Security Administration relating to such housing projects as such Administration determines are for families not deriving their principal income from operating or working upon a farm. (h) The Defense Homes Corporation and its functions, powers, and duties, including those of its officers and Board of Directors. (i) All functions, powers, and duties of the Federal Loan Administrator, the Federal Works Administrator, and the head of any department or other agency relating to the administration or supervision of the agencies, functions, powers, and duties transferred hereunder. (j) All functions, powers, and duties of the Division of Defense Housing Coordination established by Executive Order No. 8632 of January 11, 1941, and of the Coordinator of Defense Housing: Provided, That such Division and such Coordinator shall continue to exercise such functions, powers, and duties until the appointment or designation of the National Housing Administrator. (k) All powers, rights, privileges, duties, and functions transferred to the Federal Works Administrator by Executive Order No. 8186 of June 29, 1939: Provided, That with respect to any functions, powers, and duties enumerated in subparagraphs (f) and (g) above, any agency now engaged in the construction or management of any project shall continue such activities on behalf of the National Housing Agency until such time as the National Housing Administrator shall determine that it is expedient for the Federal Public Housing Authority, herein provided for, to discharge such functions, powers, and duties with respect to such project through its own facilities. 2. The National Housing Administrator shall be appointed by the President, by and with the advice and consent of the Senate, and shall receive a salary of $12,000 a year unless the Congress shall otherwise provide. Pending such appointment, an existing officer of the Government designated by the President shall act as National Housing Administrator. 3. There shall be three main constituent units in the National Housing Agency. Each such unit shall be administered by a commissioner acting under the direction and supervision of the National Housing Administrator. The unit administering the Federal Housing Administration and its functions, powers, and duties shall be known as the Federal Housing Administration, and the Federal Housing Administrator shall serve as Federal Housing Commissioner. The unit administering the functions, powers, and duties of the Federal Home Loan Bank Board and its members shall be known as the Federal Home Loan Bank Administration and the Chairman of the Federal Home Loan Bank Board shall serve as Federal Home Loan Bank Commissioner. The United States Housing Authority and its functions, powers, and duties shall be administered as the Federal Public Housing Authority, one of the main constituent units, and the Administrator of the United States Housing Authority shall serve as Federal Public Housing Commissioner. The agencies, functions, powers, and duties enumerated in subparagraphs (c), (d), and (k) of paragraph 1 shall be administered in the Federal Home Loan Bank Administration, and those enumerated in subparagraphs (f) and (g) shall be administered in the Federal Public Housing Authority. The agency, functions, powers, and duties enumerated in subparagraph (h) of paragraph 1 shall also be administered by the Federal Public Housing Commissioner. The Administrator of the National Housing Agency may centralize in the office of the National Housing Administrator such budget, personnel, legal, procurement, research, planning, or other administrative services or functions common to the said constituent units as he may determine. 4. The capital stock of the Defense Homes Corporation shall be transferred from the Federal Loan Administrator to the National Housing Administrator, and the Federal Loan Administrator and the Defense Homes Corporation shall take all necessary action to effectuate such transfer and carry out the purposes hereof. 5. The Central Housing Committee is hereby abolished, and all of its assets, contracts, property (including office equipment and records), and unexpended balances of funds available for its use are hereby transferred to the National Housing Agency. |