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through July, 1957

as are established on such other basis as permits such agencies to contribute effectively toward the solution of community development or redevelopment problems on a State, or regional (within a State), or unified metropolitan

basis.

(c) No contract shall be entered into for any loan or capital grant under this title, or for annual contributions or capital grants pursuant to the United States Housing Act of 1937, as amended, for any project or projects not constructed or covered by a contract for annual contributions prior to August 1, 1956, and no mortgage shall be insured, and no commitment to insure a mortgage shall be issued, under section 220 or 221 of the National Housing Act3, as amended, unless (1) there is presented to the Administrator by the locality a workable program (which shall include an official plan of action, as it exists from time to time, for effectively dealing with the problem of urban slums and blight within the community and for the establishment and preservation of a well-planned community with well-organized residential neighborhoods of decent homes and suitable living enviroment for adequate family life) for utilizing appropriate private and public resources to eliminate, and prevent the development or spread of, slums and urban blight, to encourage needed urban rehabilitation, to provide for the redevelopment of blighted, deteriorated, or slum areas, or to undertake such of the aforesaid activities or other feasible community activities as may be suitably employed to achieve the objectives of such a program, and (2) on the basis of his review of such program, the Administrator determines that such program meets the requirements of this subsection and certifies to the constituent agencies affected that the Federal assistance may be made available in such community: Provided, That this sentence shall not apply to the insurance of, or commitment to insure, a mortgage under section 220 of the National Housing Act, as amended, if the mortgaged property is in an area referred to in clause (A) (1) of paragraph (1) of section 220(d), or under section 221 of the National Housing Act, as amended, if the mortgaged property is in a community referred to in clause (2) of section 221 (a) of said Act: And provided further, That, notwithstanding any other provisions of law which would authorize such delegation or transfer, there shall not be delegated or transferred to any other official (except an officer or employee of the Housing and Home Finance Agency serving as Acting Administrator

Footnote continued

toward the solution of community development or redevelopment problems on a State, or regional (within a State), or unified metropolitan basis.

Metropolitan
Area

Basis

Workable

Program

1/ Subsection (c) added by sec. 303 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 623.

2/ Sec. 402 of the Housing Act of 1956, Public Law 1020, 70 Stat. 1091, 1103, reinserted reference to the U. S. Housing Act of 1937 (previously removed by sec. 108 of the Housing Amendments of 1955, Public Law 345, 84th Congress, approved August 11, 1955, 69 Stat. 635, 638) which makes the workable program requirement applicable to contracts for low-rent public housing.

Section 108(b) of the Housing Amendments of 1955 removed the following requirements from Section 10(1) of the United States Housing Act of 1937, as amended, 50 Stat. 888, 42 U.S.C. 1401, which were prerequisites to communities entering into new contracts for Federal assistance to low-rent public housing units: (1) that the community must be carrying on a slum clearance and urban redevelopment project, or a slum clearance and urban renewal project, assisted under title I of the Housing Act of 1949, as amended, and (2) that the local governing body of the community must certify that the new public housing project is necessary Lo assist in meeting the relocation requirements of section 105(c) of the Housing Act of 1949, as amended: See excerpts from the United States Housing Act of 1937 starting on page 74. 3/ See excerpts from the National Housing Act starting on page 64.

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during the absence or disability of the Administrator or in the event of a
vacancy in that office) the final authority vested in the Administrator (1)
to determine whether any such workable program meets the requirements of this
subsection, (11) to make the certification that Federal assistance of the
types emmerated in this subsection may be made available in such community,
(iii) to make the certifications as to the maximum number of dwelling units
needed for the relocation of families to be displaced as a result of govern-
mental action in a community and who would be eligible to rent or purchase
dwelling accommodations in properties covered by mortgage insurance under sec-
tion 221 of the National Housing Act, as amended, or (iv) to determine that
the relocation requirements of section 105 (c) of this title have been met.

(a) The Administrator is authorized to establish facilities (1) for
furnishing to communities, at their request, an urban renewal service to
assist them in the preparation of a workable program as referred to in the
preceding subsection and to provide them with technical and professional
assistance for planning and developing local urban renewal programs, and
(2) for the assembly, analysis and reporting of information pertaining to
such programs.

LOANS

Sec. 102. (a) To2/assist local communities in the elimination of slums

and blighted or deteriorated or deteriorating areas, in preventing the
spread of slums, blight or deterioration, and in providing maximm opportunity
for the redevelopment, rehabilitation, and conservation of such areas by
private enterprise, the Administrator may make temporary and definitive loans
to local public agencies in accordance with the provisions of this title for
the undertaking of urban renewal projects. Such loans (outstanding at any one
time) shall be in such amounts not exceeding the estimated expenditures to be
made by the local public agency as part of the gross project cost, bear interest
at such rate (not less than the applicable going Federal rate), be secured in
such manner, and be repaid within such period (not exceeding, in the case of
definitive loans, forty years from the date of the bonds or other obligations/
evidencing such loans), as may be deemed advisable by the Administrator.

(b) In connection with any project on land which is open or predominantly open, the Administrator may make temporary loans to municipalities or other public bodies for the provision of public buildings or facilities necessary to serve or support the new uses of such land in the project area. Such temporary loans shall be in such amounts not exceeding the expenditures to be made for such purpose, bear interest at such rate (not less than the applicable going

Urban
Renewal
Service

Temporary and Definitive

Loans

Loans
for
Public

Facilities

Subsection (d) added by sec. 303 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 624.

2/ This sentence amended to read as set forth in the text by sec. 304 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 624. As originally enacted this sentence read as follows: "To assist local communities in eliminating their slums and blighted areas and in providing maximum opportunity for the redevelopment of project areas by private enterprise, the Administrator may make temporary and definitive loans to local public agencies for the undertaking of projects for the assembly, clearance, preparation, and sale and lease of land for redevelopment.

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3/ Sec. 304 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 624, inserted the word "estimated".

4/ Sec. 304 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 624, inserted "or other obligations".

447391 O-57-2

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Federal rate), be secured in such manner, and be repaid within such period (not
exceeding ten years from the date of the obligations evidencing such loans),
as may be deemed advisable by the Administrator.

(c) Loans made pursuant to subsection (a) or (b) hereof may be made subject to the condition that, if at any time or times or for any period or periods during the life of the loan contract the local public agency can obtain loan funds from sources other than the Federal Government at interest rates lower than provided in the loan contract, it may do so with the consent of the Administrator at such times and for such periods without waiving or surrendering any rights to loan funds under the contract for the remainder of the life of such contract, and, in any such case, the Administrator is authorized to consent to a pledge by the local public agency of the loan contract, and any or all of its rights thereunder, as security for the repayment of the loan funds so obtained from other sources.

(a) The Administrator may make advances of funds to local public agencies for surveys of urban areas to determine whether the undertaking of urban renewal projects therein may be feasible and for surveys and plans for urban renewal projects which may be assisted under this title, including, but not limited to, (1) plans for carrying out a program of voluntary repair and rehabilitation of buildings and improvements, (11)

As originally enacted subsection (d) read as follows:

Private
Financing

"(a) The Administrator may make advances of funds to local public agencies for surveys and plans in preparation of projects which may be assisted under this title, and the contracts for such advances of funds may be made upon the condition that such advances of funds shall be repaid, with interest at not less than the applicable going Federal rate, out of any moneys which become available to such agency for the undertaking of the project or projects involved."

Sec. 304 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 624, amended subsection (d) to read as follows:

"(a) The Administrator may make advances of funds to local public agencies for surveys and plans for urban renewal projects which may be assisted under this title, including, but not limited to, (1) plans for carrying out a program of voluntary repair and rehabilitation of buildings and improvements, (ii) plans for the enforcement of State and local laws, codes, and regulations relating to the use of land and the use and occupancy of buildings and improvements, and to the compulsory repair, rehabilitation, demolition, or removal of buildings and improvements, and (iii) appraisals, title searches, and other preliminary work necessary to prepare for the acquisition of land in connection with the undertaking of such projects. The contract for any such advance of funds shall be made upon the condition that such advance of funds shall be repaid, with interest at not less than the applicable going Federal rate, out of any moneys which become available to the local public agency for the undertaking of the project involved. No contract for any such advances of funds for surveys and plans for urban renewal projects which may be assisted under this title shall be made unless the governing body of the locality involved has by resolution or ordinance approved the undertaking of such surveys and plans and the submission by the local public agency of an application for such advance of funds."

Sec. 303(b) of the Housing Act of 1956, Public Law 1020, 84th Congress, approved August 7, 1956, 70 Stat. 1091, 1100, inserted in the first sentence "surveys of urban areas to determine whether the undertaking of urban renewal projects therein may be feasible and for".

The last sentence of the first paragraph of subsection (d) was added by sec. 301 of the Housing Act of 1956, Public Law 1020, 84th Congress, approved August 7, 1956, 70 Stat. 1091, 1097.

The second paragraph of subsection (d) was added by sec. 303(a) of the Housing Act of 1956, Public Law 1020, 84th Congress, approved August 7, 1956, 70 Stat. 1091, 1099.

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through July, 1957

plans for the enforcement of State and local laws, codes, and regulations re-
lating to the use of land and the use and occupancy of buildings and improvements,
and to the compulsory repair, rehabilitation, demolition, or removal of build-
ings and improvements, and (iii) appraisals, title searches, and other pre-
liminary work necessary to prepare for the acquisition of land in connection
with the undertaking of such projects. The contract for any such advance of
funds shall be made upon the condition that such advance of funds shall be
repaid, with interest at not less than the applicable going Federal rate, out
of any moneys which became available to the local public agency for the under-
taking of the project involved. No contract for any such advances of funds for
surveys and plans for urban renewal projects which may be assisted under this
title shall be made unless the governing body of the locality involved has by
resolution or ordinance approved the undertaking of such surveys and plans and
the submission by the local public agency of an application for such advance
of funds. Notwithstanding section 110 (h) or the use in any other provision
of this title of the term "local public agency" or "local public agencies" the
Administrator may make advances of funds under this subsection for surveys
and plans for an urban renewal project (including General Neighborhood Renewal
Plans as hereinafter defined) to a single local public body which has the
authority to undertake and carry out a substantial portion, as determined by
the Administrator, of the surveys and plans or the project respecting which
such surveys and plans are to be made: Provided, That the application for
such advances shows, to the satisfaction of the Administrator, that the filing
thereof has been approved by the public body or bodies authorized to undertake
the other portions of the surveys and plans or of the project which the
applicant is not authorized to undertake.

In order to facilitate proper preliminary planning for the attainment of the urban renewal objectives of this title, the Administrator may also make advances of funds (in addition to those authorized above) to local public agencies for the preparation of General Neighborhood Renewal Plans (as herein defined) for urban renewal areas of such scope that the urban renewal activities therein may have to be carried out in stages, consistent with the capacity and resources of the respective local public agency, over an estimated period of not more than ten years. No contract for advances for the preparation of a General Neighborhood Renewal Plan may be made unless the Administrator has determined that:

(1) in the interest of sound community planning, it is desirable that the urban renewal area be planned for urban renewal purposes in its entirety;

(2) the local public agency proposes to undertake promptly an urban renewal project embracing at least 10 per centum of such area, upon completion of the General Neighborhood Renewal Plan and the preparation of an urban renewal plan for such project; and

(3) the governing body of the locality has by resolution or ordinance (1) approved the undertaking of the General Neighborhood Renewal Plan and the submission of an application for such advance and (11) represented that such plan will be used to the fullest extent feasible as a guide for the provision of public improvements in such area and that the plan will be considered in formulating codes and other regulatory measures affecting property in the area and in undertaking other local governmental activities pertaining to the development, redevelopment, rehabilitation, and conservation of the area.

The contract for any such advance of funds for a General Neighborhood
Renewal Plan shall be made upon the condition that such advance shall
be repaid, with interest at not less than the applicable going Federal
rate, out of any moneys which become available to the local public agency

Planning

Advances

General
Neighbor-

hood Renewal

Plans

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for the undertaking of the first urban renewal project in such area:
Provided, That in the event of the undertaking of any other project or
projects in such area an appropriate allocation of the amount of the
advance, with interest, may be effected to the end that each such project
may bear its proper allocable part, as determined by the Administrator,
of the cost of the General Neighborhood Renewal Plan. As used herein, a
General Neighborhood Renewal Plan means a preliminary plan (conforming, in
the determination of the governing body of the locality, to the general
plan of the locality as a whole and to the workable program of the community
meeting the requirements of section 101) which outlines the urban renewal
activities proposed for the area involved, provides a framework for the prepara-
tion of urban renewal plans and indicates generally, to the extent feasible
in preliminary planning, the land uses, population density, building coverage,
prospective requirements for rehabilitation and improvement of property, and
any portions of the area contemplated for clearance and redevelopment.

(e) To obtain funds for loans under this title, the Administrator, on and after July 1, 1949, may, with the approval of the President, issue and have outstanding at any one time notes and obligations for purchase by the Secretary of the Treasury in an amount not to exceed $25,000,000, which limit on such outstanding amount shall be increased by $225,000,000 an July 1, 1950, and by further amounts of $250,000,000 on July 1 in each of the years 1951, 1952, and 1953, respectively: Provided, That (subject to the total authorization of not to exceed $1,000,000,000) such limit, and any such authorized increase therein, may be increased, at any time or times, by additional amounts aggregating not more than $250,000,000 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.

(f) Notes or other obligations issued by the Administrator under this title shall be in such forms and denominations, have such maturities, and be subject to such terms and conditions as may be prescribed by the Administrator, with the approval of the Secretary of the Treasury. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average rate on outstanding marketable obligations of the United States as of the last day of the month preceding the issuance of such notes or other obligations. The Secretary of the Treasury is authorized and directed to purchase any notes and other obligations of the Administrator issued under this title and for such purpose is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which securities may be issued under such Act, as amended, are extended to include any purchases of such notes and other obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this section. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States.

(g) Obligations, including interest thereon, issued by local public agencies for projects assisted pursuant to this title, and income derived by such agencies from such projects, shall be exempt from all taxation now or hereafter imposed by the United States.

Obtaining
Funds
For
Loans

Terms
of
Administrator's
Notes

Tax Exemption

1 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.

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