through July, 1957

- 19

(5) carrying out plans for a program of voluntary repair
and rehabilitation of buildings or other improvements in accordance
with the urban renewal plan; and

(6) acquisition of any other real property in the urban renewal area where necessary to eliminate unhealthful, insanitary or unsafe conditions, lessen density, eliminate obsolete or other uses detrimental to the public welfare, or otherwise to remove or prevent the spread of blight or deterioration, or to provide land for needed public facilities.

For the purposes of this title, the term "project" shall not include the construction or improvement of any building, and the term "redevelopment" and derivatives thereof shall mean development as well as redevelopment. For any of the purposes of section 109 hereof, the term "project" shall not include any donations or provisions made as local grants-in-aid and eligible as such pursuant to clauses (2) and (3) of section 110 (d) hereof.

Financial assistance shall not be extended under this title with respect to any urban renewal area which is not clearly predominantly residential in character unless such area will be a predominantly residential area under the urban renewal plan therefor: Provided, That, where such an area which is not clearly predominantly residential in character contains a substantial mumber of slum, blighted, deteriorated, or deteriorating dwellings or other living accommodations, the elimination of which would tend to promote the public health, safety, and welfare in the locality involved and such area is not appropriate for predominantly residential uses, the Administrator may extend financial assistance for such a project, but the aggregate of the capital grants made pursuant to this title with respect to such projects shall not exceed 10 per centum of the total amount of capital grants authorized by this title.

In addition to all other powers hereunder vested, where land within the purview of clause (1) (11) or (1) (111) of the first paragraph of this subsection (whether it be predominantly residential or nonresidential in character) is to be redeveloped for predominantly nonresidential uses, loans and advances under this title may be extended therefor if the governing body of the local public agency determines that such redevelopment for predominantly nonresidential uses is necessary and appropriate to facilitate the proper growth and development of the community in accordance with sound planning standards and local community objectives and to afford maximum opportunity for the redevelopment of the project area by private enterprise: Provided, That loans and outstanding advances to any local public agency pursuant to the authorization of this sentence shall not exceed 24 per centum of the estimated gross project costs of the projects undertaken under other contracts with such local public agency pursuant to this title.

"Local grants-in-aid" shall mean assistance by a State, municipality, or other public body, or (in the case of cash grants or donations of land or

Footnote continued

Project

Nonresidential Uses

Subsection (c) was amended to read as set forth in the text by sec. 302(b) of the Housing Act of 1956, Public Law 1020, 84th Congress, approved August 7, 1956, 70 Stat. 1091, 1097. 1/ As originally enacted subsection (d) read as follows:

"(d) 'Local grants-in-aid' shall mean assistance by a State, municipality, or other public body, or any other entity, in connection with any project on which a contract for capital grant has been made under this title, in the form of (1) cash grants; (2) donations, at cash value, of land (exclusive of land in streets, alleys, and other public rights-of-way which may be vacated in connection with the project), and demolition or removal work, or site inprovements in the project area, at their cost; and (3) the provision, at their cost, of parks, playgrounds, and public buildings or facilities (other than low-rent public housing) which are primarily of direct benefit to the project and which are necessary to serve or support

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through July, 1957

other real property) any other entity, in connection with any project on
which a contract for capital grant has been made under this title, in the
form of (1) cash grants to defray expenditures within the purview of section
110 (e)(1) hereof; (2) donations, at cash value, of land or other real
property (exclusive of land in streets, alleys, and other public rights-of-
way which may be vacated in connection with the project) in the urban
renewal area, and demolition, removal, or other work or improvements in the
urban renewal area, at the cost thereof, of the types described in clause
(2) and clause (3) of the second sentence of section 110 (c); and (3) the
provision, at their cost, of public buildings or other public facilities
(other than publicly owned housing3/and revenue producing public utilities
the capital cost of which is wholly financed with local bonds or obligations
payable solely out of revenues derived from service charges) which are neces-
sary for carrying out in the area the urban renewal objectives of this title
in accordance with the urban renewal plan: Provided, That in any case where,
in the determination of the Administrator, any park, playground, public
building, or other public facility is of direct benefit both to the urban
renewal area and to other areas, and the approximate degree of the benefit
to such other areas is estimated by the Administrator at 20 per centum or
more of the total benefits, the Administrator shall provide that, for the
purpose of computing the amount of the local grants-in-aid for the project,
there shall be included only such portion of the cost of such facility as the
Administrator estimates to be proportionate to the approximate degree of the
benefit of such facility to the urban renewal area: And provided further,
That for the purpose of computing the amount of local grants-in-aid under this
section 110(d) with respect to any project covered by a Federal-aid contract
under this title, the estimated cost (as determined by the Administrator) of
parks, playgrounds, public buildings, or other public facilities may be deemed

Local Grants-in

Aid

Footnote continued

the new uses of land in the project area in accordance with the redevelopment plan: Provided, That, in any case where, in the determination of the Administrator, any park, playground, public building, or facility is of direct and substantial benefit both to the project and to other areas, the Administrator shall provide that, for the purpose of computing the amount of the local grants-in-aid for such project, there shall be included an allowance of an appropriate portion (as determined by the Administrator) of the cost of such park, playground, public building, or facility. No demolition or removal work, improvement, or facility for which a State, municipality, or other public body has received or has contracted to receive any grant or subsidy from the United States, or any agency or instrumentality thereof, for such work, or the construction of such improvement or facility, shall be eligible for inclusion as a local grant-in-aid in connection with a project or projects assisted under this title."

Sec. 311 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 626, amended subsection (d) to read as set forth in the text except for amendments noted in subsequent footnotes indicated in the text.

1/ Sec. 302(3) of the Housing Act of 1957, Public Law 85-104, 85th Congress, approved July 12, 1957, 71 Stat. 294, 300, inserted "to defray expenditures within the purview of section 110 (e) (1) hereof".

2/ Sec. 302(b)(2) of the Housing Act of 1956, Public Law 1020, 84th Congress, approved August 7, 1956, 70 Stat. 1091, 1099, substituted "the second sentence" for "either the second or third sentence".

3/ Sec. 302(c) of the Housing Act of 1956, Public Law 1020, 84th Congress, approved August 7, 1956, 70 Stat. 1091, 1099, deleted at this point ", public facilities financed by special assessments against land in the project area, ".

4/ Sec. 306 of the Housing Act of 1957, Public Law 85-104, 85th Congress, approved July 12, 1957, 71 Stat. 294, 301, inserted "with respect to any project covered by a Federal-aid contract under this title".

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through July, 1957

to be the actual cost thereof if (i) the construction or provision thereof
is not completed at the time of final disposition of land in the project
to be acquired and disposed of under the urban renewal plan, and (ii) the
Administrator has received assurances satisfactory to him that such park, play-
ground, public building, or other public facility will be constructed or
completed when needed and within a time prescribed by him: And provided
further, That in any case where a public facility furnished as a local grant-
in-aid in financed in whole or in part by special assessments against real
property in the project area acquired by the local public agency as part of
the project, an amount equal to the total special assessments against such
real property (or, in the case of a computation pursuant to the proviso
immediately preceding, the estimated amount of such total special assess-
ments) shall be deducted from the cost of such facility for the purpose of
computing the amount of the local grants-in-aid for the project. With
respect to any demolition or removal work, improvement or facility for which
a State, municipality, or other public body has received or has contracted
to receive any grant or subsidy from the United States, or any agency or
instrumentality thereof, the portion of the cost thereof defrayed or esti-
mated by the Administrator to be defrayed with such subsidy or grant shall not
be eligible for inclusion as a local grant-in-aid.

(e) "Gross project cost" shall comprise (1) the amount of the expenditures by the local public agency with respect to any and all undertakings necessary to carry out the project (including the payment of carrying charges, but not beyond the point where the project is completed), and (2) the amount of such local grants-in-aid as are furnished in forms other than cash: Provided, That with respect to a project for which a contract for capital grant has been executed on a three-fourths basis pursuant to the proviso in the second sentence of section 103(a), gross project cost shall include, in lieu of the amount specified in clause (1), the amount of the expenditures by the local public agency with respect to the following undertakings and activities necessary to carry out such project:

(1) acquisition of land (but only to the extent of the consideration paid to the owner and not title, appraisal, negotiating, legal, or any other expenditures of the local public agency incidental to acquiring land), disposition of land, demolition and removal of buildings and improvements, and site preparation and improvements, all as provided in paragraphs (1), (2), (3), (4), and (6) of section 110 (c); and

(11) the payment of carrying charges related to the undertakings in clause (1), exclusive of taxes and payments in lieu of taxes, but not beyond the point where such a project is completed;

but not the cost of any other undertakings and activities (including, but without being limited to, the cost of surveys and plans, legal services of any kind, and all administrative and overhead expenses of the local public agency) with respect to such project. 3/where real property in the project area is acquired and is owned as part of the project by the local public agency and such property is not subject to ad valorem taxes by reason of its ownership by the local public agency and payments in lieu of taxes are not made on account of such property, there may (with respect to any project for which a contract of Federal

This proviso added by sec. 302(c) of the Housing Act of 1956, approved August 7, 1956, 70 Stat. 1091, 1099.

2 This proviso added by sec. 302 (4) of the Housing Act of 1957,
Congress, approved July 12, 1957, 71 Stat. 294, 300.
3/ This sentence added by sec. 302(d) of the Housing Act of 1956,
Congress, approved August 7, 1956, 70 Stat. 1091, 1099.

Special Assessments

Gross Project Cost

Payments in Lieu of Taxes

Public Law 1020, 84th Congress,

Public Law 85-104, 85th

Public Law 1020, 84th

447391 O-57-4

through July, 1957

- 22

assistance under this title is in force or is hereafter executed,
other than a project on which a contract for capital grant is made on
a three-fourths basis pursuant to the proviso in the second sentence of
section 103(a)) be included, at the discretion of the Administrator, in
gross project cost an amount equal to the ad valorem taxes which would
have been levied upon such property if it had been subject to ad valorem
taxes, but in all cases prorated for the period during which such property
is owned by the local public agency as part of the project, and such amount
shall also be considered a cash local grant-in-aid within the purview of
section 110 (d) hereof. Such amount, and the amount of taxes or payments
in lieu of taxes included in gross project cost, shall be subject to the
approval of the Administrator and such rules, regulations, limitations,
and conditions as he may prescribe.

(f) "Net project cost" shall mean the difference between the gross project cost and the aggregate of (1) the total sales prices of all land or other property3/sold, and (2) the total capital values (1) imputed, on a basis approved by the Administrator, to all land or other property3/ leased, and (11) used as a basis for determining the amounts to be transferred to the project from other funds of the local public agency to compensate for any land or other property3/retained by it for use in accordance with the urban renewal plan.

(g)5/ "Going Federal rate" means (with respect to any contract for a

loan or advance entered into after the first annual rate has been specified
as provided in this sentence) the annual rate of interest which the Secre-
tary of the Treasury shall specify as applicable to the six-month period
þeginning with the six-month period ending December 31, 1953) during which
the contract for loan or advance is approved by the Administrator, which
applicable rate for each six-month period shall be determined by the
Secretary of the Treasury by estimating the average yield to maturity, on
the basis of daily closing market bid quotations or prices during the month
of May or the month of November, as the case may be, next preceding such
six-month period, on all outstanding marketable obligations of the United
States having a maturity date of fifteen or more years from the first day
of such month of May or November, and by adjusting such estimated average
yield to the nearest one-eighth of 1 per centum. Any contract for loan made
may be revised or superseded by a later contract, so that the going Federal
rate, on the basis of which the interest rate on the loan is fixed, shall
mean the going Federal rate, as herein defined, on the date that such
contract is revised or superseded by such later contract.

Net Project

Cost

Going Federal Rate

1 Sec. 302 (5) of the Housing Act of 1957, Public Law 85-104, 85th Congress, approved July 12, 1957, 71 Stat. 294, 300, inserted other than a project on which a contract for capital grant is made on a three-fourths basis pursuant to the proviso in the second sentence of section 103(a)".

2/ This sentence added by sec. 302(a) of the Housing Act of 1956, Public Law 1020, 84th Congress, approved August 7, 1956, 70 Stat. 1091, 1099.

3/ Sec. 311 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 628, inserted "or other property".

4/ Sec. 311 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 628, substituted "urban renewal" for "redevelopment".

5/ As originally enacted by the Housing Act of 1949 "going Federal rate" meant "the annual rate of interest (or, if there shall be two or more such rates of interest, the highest thereof) specified in the most recently issued bonds of the Federal Government having a maturity of ten years or more, determined at the date the contract for advance of funds or for loan is made. Section 24(a) of the Housing Amendments of 1953, Public Law 94, 83d Congress, approved June 30, 1953, 67 Stat. 121, 127, amended the definition to read as set forth in the text, except that the phrase "approved by the Administrator" was substituted for the word "made" by section 311 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 629.

through July, 1957

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(h) "Local public agency" means any State, county, municipality, or other governmental entity or public body, or two or more such entities or bodies, authorized to undertake the project for which assistance is sought. "State" includes the several States, the District of Columbia, the commonwealth or Fuerto Rico, and the territories and possesions of

the United States.

(1)3/ "Land" means any real property, including improved or un

improved land, structures, improvements, easements, incorporeal hereditaments, estates, and other rights in land, legal or equitable.

(j) "Administrator" means the Housing and Home Finance Administrator.

DISASTER AREAS

Local
Public

Agency

Land

Administrator

Sec. 111. Where the local governing body certifies, and the Administrator finds, that an urban area is in need of redevelopment or rehabilitation as a result of a flood, fire, hurricane, earthquake, storm, or other catastrophe which the President, pursuant to section 2 (a) of the Act entitled "An Act to authorize Federal assistance to States and local governments in major disasters, and for other purposes" (Public Law 875, Eighty-first Congress, approved September 30, 1950), as amended, has determined to be a major disaster, the Administrator is authorized to extend financial assistance under this title for an urban renewal project with respect to such area without regard to the following:

(1) the "workable program" requirement in section 101 (c), except that any contract for temporary loan or capital grant pursuant to this section shall obligate the local public agency to comply with the "workable program" requirement in section 101 (c) by a future date determined to be reasonable by the Administrator and specified in such contract;

(2) the requirements in section 105 (a) (iii) and section 110 (b) (1) that the urban renewal plan conform to a general plan of the locality as a whole and to the workable program referred to in section 101 (c);

(3) the "relocation" requirements in section 105 (c): Provided, That the Administrator finds that the local public agency has presented a plan for the encouragement, to the maximum extent feasible, of the provision of dwellings suitable for the needs of families displaced by the catastrophe or by redevelopment or rehabilitation activities;

(4) the "public hearing" requirement in section 105 (a);

(5) the requirements in sections 102 and 110 that the urban renewal area be a slum area or a blighted, deteriorated, or deteriorating area; and

(6) the requirements in section 110 with respect to the predominantly residential character or predominantly residential re-use of urban renewal areas.

In the preparation of the urban renewal plan with respect to a project aided under this
section, the local public agency shall give due regard to the removal or relocation
of dwellings from the site of recurring floods or other recurring catastrophes in the
project area.

*

1 Sec. 311 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 629, substituted or two or more such entities or bodies, for which is". 2/ Sec. 311 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 629, inserted "the Commonwealth of Puerto Rico".

3/ Subsection (1) was added by sec. 311 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 629.

4/ Sec. 111 added by sec. 307 (a) of the Housing Act of 1956, Public Law 1020, 84th Congress, approved August 7, 1956, 70 Stat. 1091, 1101.