through July, 1957 -9 CAPITAL GRANTS Sec. 103. (a) The Administrator may make capital grants to local public agencies in accordance with the provisions of this title for urban renewal projects: Provided, That the Administrator shall not make any contract for capital grant with respect to a project which consists of open land. The2/ aggregate of such capital grants with respect to all the projects of a local public agency on which contracts for capital grants have been made under this title, exclusive of projects referred to in the proviso hereto, shall not exceed two-thirds of the aggregate of the net project costs of such nonexcluded projects: Provided, That the aggregate of such capital grants may exceed two-thirds but not three-fourths of the aggregate net project costs of those projects which the Administrator, at the request of a local public agency, may approve on such a three-fourths capital grant basis. A capital grant with respect to any individual project shall not exceed the difference between the net project cost and the local grants-in-aid actually made with respect to the project. (b) The 3/Administrator, on and after July 1, 1949, may, with the approval of the President, contract to make capital grants, with respect to projects assisted under this title, aggregating not to exceed $900,000,000, which limit shall be increased by $350,000,000 on the date of enactment of the Housing Act of 19575 : Provided, That such limit, and any such authorized increase therein, may be increased, at any time or times, by additional amounts Capital Grants 1 Sec. 305 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 625, substituted "in accordance with the provisions of this title for urban renewal projects" for "to enable such agencies to make land in project areas available for redevelopment at its fair value for the uses specified in the redevelopment plans". 2/ The balance of this paragraph was amended to read as set forth in the text by sec. 302 (1) of the Housing Act of 1957, Public Law 85-104, 85th Congress, approved July 12, 1957, 71 Stat. 294, 299. Prior to amendment this part of the paragraph read as follows: "The aggregate of such capital grants with respect to all the projects of a local public agency on which contracts for capital grants have been made under this title shall not exceed two-thirds of the aggregate of the net project costs of such projects, and the capital grant with respect to any individual project shall not exceed the difference between the net project cost and the local grants-in-aid actually made with respect to the project. 3/ As originally enacted the first part of this sentence read as follows: "(b) The Administrator, on and after July 1, 1949, may, with the approval of the President, contract to make capital grants, with respect to projects assisted under this title, aggregating not to exceed $100,000,000, which limit shall be increased by further amounts of $100,000,000 on July 1 in each of the years 1950, 1951, 1952, and 1953, respectively: Provided, That (subJect to the total authorization of not to exceed $500,000,000) such limit, and any such authorized increase therein, may be increased, at any time or times, by additional amounts aggregating not more than $100,000,000 upon a determination by the President, ***" As amended by sec. 106(a) of the Housing Amendments of 1955, Public Law 345, 84th Congress, approved August 11, 1955, 69 Stat. 635, 637, the language preceding the proviso read as follows: "The Administrator, on and after July 1, 1949, may, with the approval of the President, contract to make capital grants, with respect to projects assisted under this title, aggregating not to exceed $500,000,000, which limit shall be increased by further amounts of $200,000,000 on July 1 in each of the years 1955 and 1956, respectively: ". Sec. 301 of the Housing Act of 1957, Public Law 85-104, 85th Congress, approved July 12, 1957, 71 Stat. 294, 299, amended the language preceding the proviso to read as set forth in the text. 4/ Executive Order 10530, issued May 10, 1954, 19 Fed. Reg. 2709, empowers the Housing and Home Finance Administrator to perform this function without the approval, ratification, or other action of the President. 5/ July 12, 1957. aggregating not more than $100,000,000 upon a determination by the President, after receiving advice from the Council of Economic Advisers as to the general effect of such increase upon the conditions in the building industry and upon the national economy, that such action is in the public interest. The faith of the United States is solemnly pledged to the payment of all capital grants contracted for under this title, and there are hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the amounts necessary to provide for such payments. REQUIREMENTS FOR LOCAL GRANTS-IN-AID Sec. 104.1/ Every contract for capital grants under this title shall require local grants-in-aid in connection with the project involved. Such local grants-in-aid, together with the local grants-in-aid to be provided in comection with all other projects of the local public agency on which contracts for capital grants have theretofore been made, shall not be required in excess of one-third of the aggregate net project costs of all projects of the local public agency on which contracts for capital grants have been made on the two-thirds basis, or in excess of one-fourth of the aggregate net project costs of all projects of the local public agency on which contracts for capital grants have been made on the three-fourths basis. LOCAL DETERMINATIONS Sec. 105. Contracts for loans or capital grants2/shall be made only with a duly authorized local public agency and shall require that - Limitations on Grants As originally enacted section 104 read as follows: "Every contract for capital grant under this title shall require local grants-in-aid in connection with the project involved which, together with the local grants-in-aid to be provided in connection with all other projects of the local public agency on which contracts for capital grants have theretofore been made, will be at least equal to one-third of the aggregate net project costs involved (it being the purpose of this provision and section 103 to limit the aggregate of the capital grants made by the Administrator with respect to all the projects of a local public agency on which contracts for capital grants have been made under this title to an amount not exceeding two-thirds of the difference between the aggregate of the gross project costs of all such projects and the aggregate of the total sales prices and capital values referred to in section 110 (f) of land in such projects)." Section 306 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 625, substituted "of the property" for "of land" near the end of the section. Section 306 of the Housing Act of 1956, Public Law 1020, 84th Congress, approved August 7, 1956, 70 Stat. 1091, 1101, amended section 104 to read as set forth in the text except that the language at the end of the section begiming with "on the two-thirds basis," was inserted by section 302(2) of the Housing Act of 1957, Public Law 85-104, 85th Congress, approved July 12, 1957, 71 Stat. 294, 300. 2/ Sec. 307(1) of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 625, substituted "loans or capital grants" for "financial aid". (a) The erbe renewal plan for the urban renewal area be approved by the governing body of the locality in which the project is situated, and that such approval 1 :lude findings by the governing body that (1) the financial aid to be provided in the contract is necessary to enable the project to be undertaken in accordance with the urban renewal plan; (11) the urban renewal plan will afford maximum opportunity, consistent with the sound needs of the locality as a whole, for the rehabilitation or redevelopment of the urban renewal area by private enterprise; and (111) the urban renewal plan conforms to a general plan for the development of the locality as a whole; (b)2/ When real property acquired or held by the local public agency in connection with the project is sold or leased, the purchasers or (c) There be a feasible method for the temporary relocation of families displaced from the urban renewal/area, and that there are or are being provided, in the urban renewal3/area or in other areas not generally less desirable in regard to public utilities and public and commercial facilities and at rents or prices within the financial means of the families displaced from the urban renewal/area, decent, safe, and sanitary dwellings equal in number to the mmber of and available to such Approval of Plan Obligation of Purchasers, etc. Relocation Requirements As originally enacted subsection (a) read as follows: "(a) The redevelopment plan for the project area be approved by the governing body of the locality in which the project is situated, and that such approval include findings by the governing body that (1) the financial aid to be provided in the contract is necessary to enable the land in the project area to be redeveloped in accordance with the redevelopment plan; (11) the redevelopment plans for the redevelopment areas in the locality will afford maximm opportunity, consistent with the sound needs of the locality as a whole, for the redevelopment of such areas by private enterprise; and (iii) the redevelopment plan conforms to a general plan for the development of the locality as a whole; ". Subsection (a) was amended to read as set forth in the text by sec. 307(2) of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 625, except that sec. 302(a) of the Housing Act of 1956, Public Law 1020, 84th Congress, approved August 7, 1956, 70 Stat. 1091, 1097, deleted "(including any redevelopment plan constituting a part thereof)" which followed "urban renewal plan" at the beginning of the subsection. 2/ As originally enacted subsection (b) read as follows: "(b) When land acquired or held by the local public agency in connection with the project is sold or leased, the purchasers or lessees shall be obligated (1) to devote such land to the uses specified in the redevelopment plan for the project area; (11) to begin the building of their improvements on such land within a reasonable time; and (iii) to comply with such other conditions as the Administrator finds, prior to the execution of the contract for loan or capital grant pursuant to this title, are necessary to carry out the purposes of this title; ". 3/ Sec. 307 (3) of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 625, substituted "urban renewal" for "project". · 12 through July, 1957 displaced families and reasonably accessible to their places of employment.1/ (a) No land for any project to be assisted under this title shall be acquired by the local public agency except after public hearing following notice of the date, time, place, and purpose of such hearing. GENERAL PROVISIONS Public Sec. 106. (a) In the performance of, and with respect to, the functions, powers, and duties vested in him by this title, the Administrator, notwithstanding the provisions of any other law, shall (1) appoint a Director/to to administer the provisions of this title under the direction and supervision of the Administrator and the basic rate of compensation of such position shall be the same as the basic rate of compensation established for the heads of the constituent agencies of the Housing and Home Finance Agency; (2) prepare annually and submit a budget program as provided for wholly owned Government corporations by the Government Corporation Control Act, as amended; (3) 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: Provided, That such financial transactions of the Administrator as the making of advances of funds, loans, or capital grants and vouchers approved by the Administrator in connection with such financial transactions shall be final and conclusive upon all officers of the Government. (b) Funds made available to the Administrator pursuant to the provisions of this title shall be deposited in a checking account or accounts with the Treasurer of the United States. Receipts and assets obtained or held by the Administrator in connection with the performance of his functions under this title shall be available for any of the purposes of this title (except for capital grants pursuant to section 103 hereof), and all funds available for carrying out the functions of the Administrator under this title (including appropriations therefor, which are hereby authorized), shall be Director Budget Accounts and Audits Checking Sec. 307(4) of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 625, deleted the following proviso from the end of this subsection: "Provided, That in view of the existing acute housing shortage, each such contract entered into prior to July 1, 1951, shall further provide that there shall be no demolition of residential structures in connection with the project assisted under the contract prior to July 1, 1951, if the local governing body determines that the demolition thereof would reasonably be expected to create undue housing hardship in the locality." 2/ The Administrator's Reorganization Order No. 1, effective December 23, 1954, 19 Fed. Reg. 9303, established the Urban Renewal Administration as a constituent unit of the Housing and Home Finance Agency, provided that the office of the Director referred to in this section was transferred to the Urban Renewal Administration, and that the title of the officer was changed to "Urban Renewal Commissioner". The Order also provided that the slum clearance and urban renewal functions of the Housing and Home Finance Administrator under title I of the Housing Act of 1949, except the nondelegable authorities vested in the Administrator pursuant to section 101(c) of the Act, should be administered by the Urban Renewal Commissioner under the supervision and direction of the Administrator. through July, 1957 13 available, in such amounts as may from year to year be authorized by the Congress, for the administrative expenses of the Administrator in connection with the performance of such functions: Provided, That necessary expenses of inspections and audits, and of providing representatives at the site, of projects being planned or undertaken by local public agencies pursuant to this title shall be compensated by such agencies by the payment of fixed fees which in the aggregate will cover the costs of rendering such services, and such expenses shall be considered nonadministrative; and for the purpose of providing such inspections and audits and of providing representatives at the sites, the Administrator may utilize any agency and such agency may accept reimbursement or payment for such services from such local public agencies or the Administrator, and credit such amounts to the appropriations or funds against which such charges have been made. (c) In the performance of, and with respect to, the functions, powers, and duties vested in him by this title, the Administrator, notwithstanding the provisions of any other law, may (1) sue and be sued; (2) 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 or part thereof in connection with which he has made a loan or capital grant pursuant to this title. In the event of any such acquisition, the Administrator may, notwithstanding any other provision of law relating to the acquisition, handling, or disposal of real property by the United States, 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 laws of the inhabitants on such property; (3) enter into agreements to pay annual sums in lieu of taxes to any State or local taxing authority with respect to any real property so acquired or owned, and such sums shall approximate the taxes which would be paid upon such property to the State or local taxing authority, as the case may be, if such property were not exempt from taxation; (4) 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 capital grant, 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; (7) include in any contract or instrument made pursuant to this title such other covenants, conditions, or provisions (including such covenants, conditions, or provisions as, in the determination of the Administrator, are necessary or desirable to prevent the payment of excessive prices for the acquisition of land in connection with projects assisted under this title) as he may deem necessary to assure that the Foreclosure Payments in Lieu of Taxes Conveyances Insurance Modification of Contracts Additional Proviso added by sec. 308 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 625. 447391 O-57-3 |