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[COMMITTEE PRlNT] SENT A S A SERVICE OF UNITED STATES CONFE RENCE OF M AYORS 1707 H STREET, N . W . W AS H IN GTON, D. C . 20006 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966 PUBLIC LAW 89-754 TOGETHER WITH A BRIEF .SUMMARY, SECTION-BYSECTION ANALYSIS, LEGISLATIVE HISTORY, AND CONFERENCE REPORT COMMITTEE ON BANKING AND CURRENCY HOUSE OF REPRESENTATIVE'S 89th Congress, 2d Sess ·on NOVEMBE R 4, 1966 Printed for the use of the Ciommittee on Banking a nd Currency U .S. GOVERNMENT PRINTING OFFICE 70-742 0 WASHINGTON : 1966 For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 Price 25 cents �- - ., I COMMITTEE ON BANKING AND CURRENCY W RIGHT PATM AN, T exas, Chairman ABRAHAM J . MULTER, N ew York WILLIAM B. WIDNALL, N ew Jersey WILLIAM A. BARRETT, Pennsyl..-ani11 PAUL A. FINO, N ew Yor k LEONOR K . SULLIVAN, Missouri FLOREN CE P. DWYER, New Jersey HENRY S. RE USS, Wisconsin SEYMOUR HALPERN, New York THOMAS L. ASHLEY, Ohio JAMES H ARVEY, Michigan WILLIAM S. MOORHE AD, Pennsylvania W. E. (BILL) BROCK , T ennessee R OBERT 0. ST E PHENS, J R., Georgia BURT L . TALCOTT, Ca!Uornia F ERNAN D J. ST GERMAIN, Rhode Island D E L CLAWSON, CaUfornm HENRY B. GONZAL EZ, Texas ~<\.LBE R T W . J OHNSON, Pennsylvania JOSEPH 0 . MINISH, N ew J ersey J. WILLIAM STANTON, Ohio CHARLE S L. WELTNER, Georgia CHESTER L. MIZE , K ansas RICHARDT. HAN NA, California BERNARD F. GRABOWSKI, Connecticut COMPTON I. WHITE, JR., Idaho TOM S. GETTYS, South Carolina PAUL H . TODD, JR., Michigan RICHARD L. OTTINO E R , N ew York T H OM AS C . M cGR AT H, J R., New Jersey JOHN R . HAN SEN, Iowa FRANK ANNU N ZIO, Illinois THOMAS M. REES, California P AUL NELSON' Clerk and Staff Director ALVIN LEE M ORSE, Cou na<l CURTIS A. PRINS, Chit! In veatigator N ORMAN L. H OLMES, Counul BENET D . GELLMAN, In veatigatioe Counsel ORMAN S. FTNK, Minorit11 Staff Member SUBCOMMITTEE ON HOUSING W ILLIAM A . BARRETT, Pennsylvania, Chairman LE ONOR K . SULLIVAN, Missouri W ILLIAM B . W IDNALL, New Jersey T H OMAS L . ASHLEY, Ohio PAUL A . FJNO, New York WILLIAM S. MOORHEAD, P ennsylvania FL ORENCE P. D WYER, N ew Jersey ROBER T 0. ST EPHENS, J R., Georgia J AMES HARVEY, M ichigan FER NAND J . ST GERMAIN, Rhode Island HENRY B. GONZAL EZ, T exas HENRY S. REUSS, Wisconsin J OHN J . MCE WAN, Staff Director KENNETII ,v. BURROWS, Depm11 Staff Director CASEY I RELANn , M inorit11 Sta ff Member II �.LETTER OF TRANSMITTAL To the Mmnbers of the Committee on Banking and Currency: The enactment of the Demonstration Cities and Metropolitan Development Act marks a new era in our efforts to·rid our towns and cities of blight and meet the problems of population growth. Programs to eradicate slums and to aid underprivileged citizens have achieved notable success in the p ast, but experience has shown that greater coordination is needed to obtain the maxi.mum value for every dollar spent. Urban renewal cannot attain its full goal if we rehabilitate and improve the housing but the people who live in them still suffer the problems of poverty. Similarly, our efforts to improve education, vocational training, health services, and so forth are greatly handicapped if the families who receive this help must continue to live in slums. The demonstration cities program will bring these programs together so that the physical and social problems of an area can be treated together. Ano ther important shift in our approach to the needs of communities and the people who live in them is the new program of urban planning incen tives which provides a powerful inducement to all units of government in metropolitan areas to plan together for their future and to pu t these plans into action. A major new provision of the act au thorizes assistance for whole new communities which can channel homebuilding into well-planned a ttractive developments of major sizes and which can counteract urb an sprawl. · The needs of our rural population are not forgotten in this act which includes a title of perfecting and improving amendments to our pr ograms in this field. Other titles offer new aid for the group pr actice of m edicine, the preservation of valuable his toric structures, and improvemen ts in existing programs. · T he many weeks of work that the committee devoted to this legislation have result ed in a landmark addition to our laws concerned with housing and community development. The 10 titles and 90 sections of the act represent one of the most comprehensive and -f orwardlooking actions in this field ever taken by Congress. Sincerely, WRIGHT PATMAN, Chairman. m �BRIEF S UMMARY OF PRINCIPAL PROVISIONS OF THE DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966 C OMPRE H E NSI V E CITY DEMO NSTRA TION PROGRAMS The Secretary of Housing and Urban D evelopment is auth orized to provide grants and technical assistance to help communities of all sizes t o plan, develop, and carry out comprehensive city demonstration programs. These are locally prepared programs for rebuilding or rest oring entire sections and neighborhoods of slum and blighted areas by the con centra ted and coordinated use of all available Federal aids t ogether with local, private, and governmental r esources. The program will operate in t wo stages : (1) Assistance wi).l be provided t o plan and develop demonstration programs ($12 million for this fiscal year and $12 million for next fiscal year), and (2) after J uly 1, 1967, assistance will be provided t o carry out the programs planned ($400 million for next fiscal year and $500 million for the following fiscal year) . A ssistance for Planning a Demonstration Program The Secretary of Housing and Urban Development will make gran ts and provide technical assistance for planning city demonstration programs. The Secretary is authorized to make grants to cover up to 80 percent of the cost of planning and developing a city demonstration program. These grants will be made to a " city demonstra tion agency". The "city demonstration agency" may be a city , county, or any local public agency established or designa ted by t he local governing body to administer the comprehensive city demonstration program . It may be a public agency created for the purpose of admmistering the demonstration program or it may be an existing local public agency assigned this responsibility. Applications for assistance to plan demonstration programs would be made by the "city demonstration agency" and must have the approval of the local governing b ody of the city. The application must show in broad and general terms th e nature a nd seriousness of the city's problems and the outlines of what the city proposes to do. Content of Demonstration Program To quaJify for assistance, a city's demonstration program must meet standards prescribed by the legislation. In general, the city's program must be designed to (1) renew enti,re slum neighborhoods by combined use of physical and social development programs, (2) increase substantially the supply of standard housing of low and and moderate cost, (3) make marked progress in red11Cing social and educational disadvantages, ill health, underemployment and enforced idleness, and (4) contribute toward a well-balanced city . In addition, the city's presentation must indics.tte that (1) the projects and activities which are to be a part of the program will be 1 �2 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT initiated reasonably soon, (2) adequate local resources to car ry ou t these projects and activities are, . <?r will be, available, (3) priv ate initiative and enterprise will be u t1hzed to the fullest extent p ossible, (4) a relocation plan to adequately serv e th ose displaced exists, a nd (5) the progrfl-m is consistent with comprehensive planning · in the entire urban and metropolitan area. Assistance for Carrying Out the Program Two types of Federal assista.nce will be available to help finance projects or activities that are included a s par t of an approved comprehensive city demonstration program. First, to the extent such projects or activities are eligible for assistance under an existing Federal grant-in-aid program, they m ay be financed under that program. This legisla t ion contemplates that existing Federal grant-in-aid programs-and funds now available for those programs-will be utilized, where feasible , in carry ing out projects or activities that, though part of a comprehensive city demonstration program, are eligible for assistance under exist ing grant-in-aid programs. Second, special grants, supplementing th e assistance available under existing gran t-in-aid programs would b e provided under the demonstration cities program. The am ount of the special-supplemental- demonstration cities grant would be up t o 80 p ercent of the total non-Federal contributions required to b e made to all projects or activities assisted by existing Federal gr ant-in-aid programs which are carried out as part of a comprehensive city demonstration program. Use of Supplemental Grant Provided f or Demonstration Programs The supplemental gran t funds au thorized to be paid to comprehensive city demonstration programs are not "earmarked" for any one specific project or activity carried ou t as part of the demonstration program. After the amount of the supplemental grant funds available to the city is established under the formula in the legislation, the total amount will be available to the city to be used to assist those projects and activities included within the com prehensive city demonstration progr8:m 'Yhich are not oth er wise assisted under an existing Federal grant-m-a1d program. To the extent that these supplemental grant funds are not n ecessary to support such projects and activities, they may b e used by the cities to provide their required share of the cost of new projects or activities included within the comprehensive city demonstration program and assisted under an existing Federal grantin-aid program. · Urban Renewal Authorization An additional $250 million in grant authority is provided f?r ur~an renewal projects which are part of approved comprehensive city demonstration programs. PLAN NED METR OPOLITAN DEVELOPMENT The Secretary is authorized to make supplemental grants to Stat e and local public _b?dies _and agencies f~r up t o 20 percent of the cost of pr ojects rece1vmg aid under certam ot1:ter Fed_eral pr?grams in metropolitan areas where development is bemg carried ou t ~ accordance with their own metropolitan plannin~ and . programing. The supplemental grant is designed to be an mcentive to coordinated �DEMON STRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 3 pla1;1ned metrop?litan development. The met ropolitan development pr ~Jects for which su_ppl~mental grants are available are projects assisted under the followrng specified programs: 1. Grants for b asic water and sewer facilities, administered by the Department of Housing and Urban Development . 2. Grants for library facilities, administered by the Depar tment of Health, E ducation, and Welfare. 3. Grants for h ospital and medical facilities, administered by the Depar tment of Heal th, Education, and Welfare. 4. Gran ts for_construction of sewage-treatmen t works, administered by the D epar tment of th e Interior. 5. Grants for highway construction (Federal-aid primary and secondary systems and urban extensions, but not the Interstate System) administered by the Department of Commerce. . 6. Grants for airport developmen t, administered by th e F ederal Aviation Agency. 7. Gran ts for urban mass transportation facilities and equipment, administered by the Depar tment of H ousing and Urban D evelopment. 8. Gran ts for acquisition and development of open-space land, for urban beautifica tion and improvement, or for hist oric preserva tion, administe:red by the Depar tment of Housing and Urban D evelopment. 9. Gran ts for acquisition and developmen t of lands and waters for recreation al purposes, administered by the D epartment of the Interior. 10. Gra n ts for public works and facilities in redevelo_pment areas, administered by the Depar tment of Commer ce (but only if they involve works or facilities of a type which the Secretary of Housing and Urban Development determines t o be eligible under one of the foregoing programs) . The additional or supplemental grant cannot exceed (1) 20 percent of the cost of the pr oject for which it is made, n or (2) the grant which is being supplemented. In addition, the total F ederal contributions to a project cannot exceed 80 percent . Coordination of Federal Aids in Metropolit,an Areas After June 30, 1967, all applications for F ederal assistance for projects for which supplemental grants can be provided m ust be submitted to a metropolitan or regional planning agency for review. The application shall be accompanied by commen ts of the planning agency concerning the extent to which the project is consistent with the comprehensive planning developed or in process for the area and the extent to which the project con tributes to fulfillmen t of the planning. Applications from special-purpose public bodies m ust similarly be submitted for review by the unit of general local governm en t . The Secretary is authorized to call upon oth er Federal agencies t o cooperate in insuring that all the Federal programs related to metropolitan development are carried out in a coordinated manner. Metropolimn Expediters Upon the request of local officials of the central city in any metropolitan area, and after consultation with local governmental authorities in the area, the Secretary may appoint a metropolitan expediter for the area. 'I he expediter shall provide information, data, and assistance to local authorities and others in the area with respect to programs and �4 DEMONSTRATION CITIES AND MET ROPOLITAN DEVELOPMENT ACT activities conducted within the area b y th e Depar tmen t of Housing and Urban Development, and with respect to other public and private activities and needs within th e area relating t o th ose p rograms and activities. URBAN INFORMATION AND T ECHNICAL SERVICES The Secretary is authorized to make m atching gran ts to States to help fin ance programs to provide small communities (less t h an 100,000 population) wi th information and dat~ on urban needs and assistance activities and technical assistance with r espect to solution of local problems. FHA MORTGAGE I NSURANC E M ortgage I nsurance f or New Oom.munities The FHA program for la nd development is broadened to permit the financing of " new communities" with F HA-insured mortgages. The ' new communities must be a pproved by the Governor and the local governing body or bodies of the locali ty or localities in which thev will be located . However , if t he localities have home rule powers the approval of t he Governor is not r equired. Mortgages financing new communities may be made eligible for purchase by FNMA under its special assistance program . 11/fortgage I nwrance f or Group P ractice Facilities FHA is aut horized to insure mortgages financing the construction or r ehabilitation of facilities for group practice of medicine, optometry or denti.1stry , par ticularly in smaller communities. The mortgages ca~ also finance equipment of the facilities. The mortgagor must be a private nonprofit corporation. Both profitmaking and nonprofit groups may ut ilize the facilities. FI-IA Mortgage In.<1urance for Veterans T he special mortgage insurance program, which permits veterans to purchase homes with FHA-insured mortgages and low downpayments, is made available to any veteran without regard to whether the veteran has previo usly received a VA loan or loan guarantee. New Fl-IA Sal,es I-lousing Program for Low-Income Families A limited new FHA program of sales housing for low-income fam ilies financed wi th below market interest rate insured mortgages is a ut horized . Private nonpr ofit organizations are made eligible for insured mortgages to finance the purchase and rehabilitation ?f substandard housing (not less than five units) for resale to low-mcome purchasers. The mortgages will bear interest a~ not more than 3 percent. T he dwellings will be resold to lo"Y-mcome purchasers . Morto-ao-es financing the purchases will also be msured by FHA and bear in~r est a t. not more than 3 per~ent. The purchaser "¼-Ul pay at. least $200 down which mav be applied to closmg costs. FNMA is authorized t.o pm-chase the mortgages under its - special assistance program . �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 5 F NMA C O NST RUCTIO N FI NANCING FOR CERTAIN HOUSING FN~A is a uthorized to participate (up t o 95 percent) in making FHA-~ sured advances during construction on FHA insured mortgages financmg coopera tive housing, nonprofit and limit ed dividend section 221 (d) (3) housing for lo w-income families , and section 220 urban renewal housing. RURAL HOUSING T he F armers H ome Administration program of assistance to rural housing is amended t o pennit comakers in the case of applicants for rural housing loans wh o are deficient in repayment ability; to increase from $1,000 to $1,500 th e limi t on the amount of a loan, grant, or combined loan and gr ant for repairs and improvements to rural dwellings n ecessary to make th em safe and sanitary; to pennit loans for r ental housing for low-income families who are not elderly; to make cooperative housing eligible for direct or insured rural housing loans; to m ake insured loans available for h ousing for rural nonelderly who have moderate incomes in addition to rural elderly; and in other respects. M ORT GAGE RE LIEF F OR HO MEOWNERS NEAR INST A LLATIO NS CLOSED MILITARY The provisions in the Housing and Urban D evelopment Act of 1965 authorizing relief for hom eowners wh o are adversely affected by the closing of Inilitary installations are am ended to make them more workable. PRESE RVATION OF HISTORIC STRU CT U RES AN D AREAS The Secretary of H ousing and Urban Developmen t is authorized to make mat ching gran ts to S tates and local public b odies to assist in the acquisition and r es tora tion of hist~ric structures and areas. Preservation of historic structures may b e m cluded as parts of urb an renewal projects. Gran ts may be made under t~e urb an planning grant program t o cities or _counties for the _ma~ng of s~veys of structures and sites determm ed to be of historic or architectural value, and determination of the cost of their rehabili tation or r es toration. The Secretary is also a:u thorized to m ake gran£s to t~e N9:tion~ Trust for Historic Preservat10n t o cov er costs of renovatmg histori c structures. URBAN RENEWAL Under a pr ovision added to the urban renewal law, the r edevelopment of an urb an renewal area, unless it is for predominantly nonresidential uses, must provide a subst antial num~er -of units of stand ~ d housing of low and moderate cos t and res~~ 1I1. marked prog1;ess m serving the poor and disadvantaged people livmg m slum and bligh ted areas. For the purpose of comput ing local grants-in-aid to an urban renewal project, a publicly owned facility which was begun not earlier than 3 years prior to enactment of this 1966 act, shall be deemed to �6 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT benefit an urban renewal project to the extent of 25 percent of the total benefits of the facility or $3,500,000, whichever is less, if the facility1. Is used by the public for cultural, exhibition or civic purposes, is a city hall or a public safety building, or is constructed or rehabilitated by a public university and devoted to the treatment of physical or mental disabilities and illness or to medical research; 2. I~ located within, adjacent to, or in the immediate vicinity of the urban renewal project; 3. Is found to contribute materially to the objectives of the urban renewal plan ; and 4. Is not otherwise eligible as a local grant-in-aid. �SECTION-BY-SECTION SUMMARY OF THE DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966-PUBLIC LA-W 89-754 TITLE I -COMPREHENSIVE CITY DEMONSTRATION PROGRAMS F INDINGS A ND DECLARATION OF PURPOSE Section 1 OJ .-Sets fort h the findings of Congress that improving the quality of urban life constitu tes our most critical domestic problem that cities of all sizes do no t h ave the resources needed to deal effec~ tively with this problem and th at Federal assistance in addition to that authorized by the urban renewal program and other existing Federal grant-in-aid programs is essential to enable cities to plan, develop, and conduct program s t o improve their physical environment, increase the housing supply for low- and moderate-income people, and provide vital services. This section further states th at it is the purpose of title I to provide additional assistance to enable cities of all sizes t o plan, develop, and carry out locally prepared and scheduled programs to rebuild or revitalize large slum and blighted areas and expand and improve public programs and services in t hose areas, and to accomplish these objectives through the most effective and economical con cen tration and coordination of Federal, State, and local public and private activities and programs. BASIC AUT HORITY Section 102.-Authorizes the Secretary of Housing and Urban Development to make grants and proVIde technical assistance to enable city demonstration agencies to plan, develop, and carry out comprehensive city demonstration programs. ELIGIBILITY FOR ASSIST ANCE Sectwn 108(a).-Provides that a comprehensive city demonstration program is eligible for :financiaJ assistance under section 105 and relocation assistance under section 107 to carry out the program only if certain specific criteria are met, including requirements that(1) Physical and social problems in the area of the city justify a comprehensive city demonstration program to carry out the purposes of the title; . (2) The program is of sufficient magnitude to make a substantial impact on the physic~! and _s ocial p_roblems a~d to remove or arrest blight and decay m entire sect10ns or ne~ghb<_>rh oods, to contribute to the sound development of the entire city, and to make ma,rked progress in reducing social and educational disadvantages, ill health, underemployment, and enfor~ed idleness; 7 �8 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT (3) The program, including re~uildin_g or restora tio_n , ~l contribute toward a well-balanced city, with a substantial rncrease in the supply of standard housing of bo th low and moderate cos t; (4) Local administrative procedures are available for carryinO' ou t the program on a consolidated and coordinated b asis; loca1 la,vs, regulations, and other requirements are or can be expected to be consistent with the objectives of the program; the projects and activities involved will be initiated reasonably soon; adequate local resources are or will be available; private initiative and enterprise will be u tilized to the fulles t extent possible; a relocation plan meeting the requirements of the Secretary exists ; the local governing body h as approved the program , and where appropriate, applications for assistance ; agencies whose cooperation is necessary to the success· of the progr am have indicated their intent to furnish such cooperation ; the program is consistent with comprehensive planning in the entire urban or metropolitan area ; and the locality will continue t o m aint ain at least the same lev el of expenditures for activities similar t o those being assisted; and (5) · The program meets any addition al criteria or requirements which are related and essential to the statu tory criteria for a program, that the Secretary may es t ablish. S ection 103(b) .- Provides that , in implem enting title I , the Secretary sh all (1) emphasize local initiative, (2) insure m aximum coordination of Federal assis tance, and (3) encourage city d emonstration agencies to enhance neighborhoods by ap plying a high standard of design, m aintain neighborhood ch aracteristics, and make maximum use of new and improved technology and design, including cost reduction techniques . S ection 103(c) .- Provides th at the preparation of demonstration city program s sh ould, to the maximum extent feasible, include system atic comparative analyses of the costs and benefits (financial or otherwise) of alternative courses of action designed to fulfill urban needs, and establish programing systems designed to assure effective use of such analyses by city demonstr ation agencies and other governmental bodies. S ection 103(d).- Provides that n othing in section 103 authorizes the Secretary to require (or condition th e availability or amount of financial assist ance authorized to b e provided under title I upon) the ad option by any community of a program (1) by which pupils resident in a school district not within the confines of the area covered by the city demonstration program -shall be transferred to a school or school district including all or par t of such area, or (2) by which pupils resident in a school district within the confines of the area covered by the city demonstration program shall be transferred to a school or school district not including a part of such area . FINANCIAL ASSISTANCE FOR PLANNING COMPREHENSIVE CITY DEMONSTRAT ION PROGRAMS Sect~on 104(a) .- Aut~orizes_ the Secretary_ to make grants to, or enter rnto contracts with, c~ty demonstrati<?n agencies to pay 80 percent of ~he costs of plannmg and developmg comprehensive city demonstrat10n programs. Section 104(b) .- Provides that such financial assistance ma be provided only if (1) the application for the assistance has beei ap- �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 9 proved by ~he local gover1:ill?g bo~y of the _city, an~ (2) the Secretary has d~te ~ed tha t administr a~ive m ~c~ ery exists through which coo!dinat10n of all related plannrng a ctivities of local agencies can be achieved, and th at the necessary cooperation of agencies in related local planning can be secured. FINANCIAL A SSISTANCE F OR APPROVED COMPREHENSIVE CITY DEMO N STRATION PROGRAMS . Section 105(a).- A uth orizes the Secretary to approve comprehensi~e city dem onstration programs if, after r eview of plans, he deter~mes _that the plans satisfy the criteria for -such programs set for th m section 103 of the act . S ection 105(b) .-Authorizes the Secr etary to make grants to, and enter into contracts with, city demonstration agencies to pay 80 ~ercent of the costs of administering comprehensive city demonstration programs. T his auth ority does not cover the administr ative costs of any project or activity which is carried ou t as part of a demonstration program and assisted under a Federal grant-in-aid program. S ection 105(c).- Provides, in addit ion, t h at in order t o assist the city to carry out t he projects or activities included within an approved comprehensive city demonstration program, the Secretary may make grant s t o t he city demonstrat ion agency of not to exceed 80 percent of t he aggregate amount of non-Federal con tribut ions ot herwise required to be m ade by t he locality to all projects or activit ies assisted by Federal grant-in-aid programs carried out in connection with such comprehensive city d emonstration program. No Federal gran t-in-aid program may be considered as b eing carried out in connection with a demonstration program unless it is closely related t o t he physical and social problems in the area of the city covered by the program, and unless it can reasonably be expect ed to have a noticeable effect upon ~uch problems. Also, the specific amount of any such grant is t o take mto account the number and intensity of t he economic and social pressures in the sections or neighborhoods involved, such as those involving or resulting from population density, poverty levels, unemployment rate, public welfare participation, educational levels, health and disease characteristics, crime and delinq uency rate, and degree of substandard and dilapidated h ousing. The amount of non-Federal contribution required for each project · in a Federal grant-in-aid pr ogram would be certified t o the Secretary by the Federal department or agency administering the grant-in-aid pro~ram, and the Secretary would be required to accept s uch_ dete~mrnation in computing the amount of any grant made under this se_ction. Section 105(d) .-Requires that grant funds provided to assist projects or activities included within an approved comprehensive city demonstration program under s ubsection (c) be made available to assist new and additional projects and activities not assisted under a Federal grant-in-aid program. T o t he extent t hat funds are not necessary to support fully such new and additional projects and activities, they may b~ used and ?redited as ~a ~t. or all ~f the required non-Federal contribution to proJects or activities, assisted under a Federal grant-in-aid program, which are part of an approved city demonstration program. Grant funds may not be used (1) for the general administration of local governments, or (2) to replace non-Federal contribut ions in any �10 DE MONSTRATION CITIE S AND MET R OP OLITAN D EVELOPMENT ACT federally aided project ?r activity ~ clud~d in an apl?roved compr ~hensive city demonstrat10n pr~gram if, pr10r to the filing of an application for assistance under section 104, an agreement has been entered into with any F ederal agenc-y: obligatin~ ~uch non-Federal contribut ions with respect to such proJect or activity. TECHN I CAL ASSI STANCE S ection 106. -Authorizes the Secretary to provide t echnical assist ance to city demons~r ~tion_ agencies to a~sist ~hem in plann~g, developing, and adrmmstermg compreh ensive city demonstration programs. R ELOCATION R E QUIREMENTS A ND PAY MENTS S ection 107(a) .-Requires that a comprehensiv e city demonstrat ion program include a relocation p~an , for all displaced_peol?le and businesses which meets th e relocation standards prescribed m th e urban renew~l law and assures th e availability of adequate housing before people are displaced , . and which i:equire~, _t? the_ m ~ximum E?xtent feasible the coordinat10n of relocation activities w1th mcreases m the supply ~f standard housi?g suitable_ for displaced f~milies. S ecti on 107(b) .-Requrres relocat10n p ayments, m the amount an d in the circumstances authorized by section 114 of the H ou sing Act of 1949, to individuals, families , business concerns, an d nonprofit organizations displaced or t o be displaced under com preh ensive city demonstration programs. Where relocation payments authorized in existing Federal programs utilized in C?nne<?tion with the demonstration program are less than now auth orized m the urb an renewal proITTam, demonstration gran t funds will supplement the relocation pay~ents authorized in these existing programs to make up the difference. S ection 107(c) .- M akes it clear th at th e r equirement of relocation payments imposed by section 107(b) does not apply to any displacement occurring b efore the bill is enacted . · CONTINU ED AVAILABILITY OF FEDERAL GRANT- IN-AID PROGRAM FUNDS S ection 108.--Pr?vi~es_ th~t (subje?t onl:y to laws subsequently enacted expressly 1~ ~ tation of t¥ s section) funds appropriated for a J:e~~ral gr~nt-m-aid program which ar e reserved for any projects or act1vit1es ,assisted under such program and undertaken in connection with an appro ed comprehensive city demonstration program will remain available until exp ended. CO NSULTAT IOK S ecti~n 10_9.- R ~quires ~be Secretary, in c~rrying out the provisions of the title, mcluding the issu ance of regulations, to consult with other F ederal departments and agencies administering grant-in-aid program~, a?d to consul_t with each such department or agency before entering m to a comnnt.ment to make grants under section 105. LABOR STANDARDS Section_ 110(a) .- Provides that the prevailing wage proV1sions of the Davis-Bacon Act shall apply to projects, the construction, re- �DEM ONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 11 habilitation , repair, or alteration of which is assisted with Federal funds provided under the demonstra tion cities program if they are not other wise subject to the provisions of Federal law imposing labor standards on federally assisted construction. Such requirements, however, are to apply to residential property only if such property is designed for residential use for eight or more families. Section 110(b).-Specifies tha t the Secretary of L abor shall have the coordinating au thority, for labor standards in subsection (a) , provided in R eorganization Plan N o. 14 of 1950 and other Federal laws. APPROPRIATIONS Section 111(a) . -Authorizes, for planning gran ts and administrative expenses under section 104 ( and technical assistance under sec. 106), appropriations of $12 million for the fiscal year 1967 and $ 12 million for the fiscal year 1968. S ection 111(b) . -Authorizes, for gran ts and contracts to assist approved comprehensive city demonstration programs under section 105, for technical assistance under section 106, and for relocation assistance under section 107, including related administrative expenses, appropriations of $400 million for fiscal y ear 1968 and $500 million for fiscal year 1969. Section 111(c) . -Provides that these appropriations shall remain available until expended . DEFINITIONS Section 112.- Defines terms used in title I. A Federal grant -in-aid program is a program of Federal financial assistance other than loans (and other than assistance under this title). A city .demonstration agency is a city, county, or any local public ai ency established or designated as such by the local governing body of that city or county. A city is any municipality (or two or more municipalities acting jointly) having general governmental powers. A local agency may be a State agency or instrumentality providing services and resources to a city or locality, and local resources include those so provided to a city or locality. . GRANT AUTHORITY FOR URBAN RENEWA L PROJECTS WHICH ARE PART OF APPROVED COMPREHENSIVE CITY DEMONSTRATION PROGRAMS Section 113. -Authorizes $250 million in additional urban renewal grant authority, to be available after July 1, 1967. This additional authority would be limited to urban renewal projects which are identified and scheduled to be carried out as projects or activities included within an approved comprehensive city demonstration program. STA.TE LIMIT Section 114.-Provides that grants made under section 105 for demonstration programs in any one St ate shall not exceed in the aggregate 15 percent of the aggregate amount of funds authorized to be appropriated under section 111. �12 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT TITLE II-PLANNED METROPOLITAN DEVELOPM E N T FINDINGS AND DECLARATION OF PURPOSE Secti on 201 (a).- Sets forth congressional findings (1) t hat the welfare of the Nation and of its people is directly dependent upon th e sound and orderly development and the effectiv e organization and functioning of the metropolitan areas in which two-thirds of its people live and work; (2) that the continuing r apid gr owth of t hese areas makes it essential that they prepare, keep current, and carry ou t com prehensiye plans an~ progra:i:ns for their ?rderly ph_ysical dev_elopment with a view t o meetmg efficiently all their economic and social n eeds; (3) that metropolitan areas are especially h andicapped in this task by the complexity and scope of governmental services r~q uired in such r apidly growing areas, the multiplicity of political jurisdictions and ae1encies involved, and the inadequacy of the operational and administrative arrangements available for cooperation among t h em; and (4) that present requirements for areawide planning and progr aming in connection with various Federal programs have materially assisted in the solution of metropolitan problems, bu t th at greater coordination of Federal programs and addition~l. pa! ticipatio~ and cooper ation ar e needed from the St ates and localities m perfectmg and carrying ou t such efforts. Section 201(b).-States that the purpose of title II is to pr ovide, through greater coordination of Federal progr ams and throu gh su pplementary gran ts for certain feder8:1-ly assisted development p rojects, additional encouragement and assistance to States and localities for making comprehensive metropolitan planning and programinO' • b effective. COOPERATION B ETWE EN FEDERAL AGENCIES S ection 202.- Auth orizes the Secretary of Housing and Urban DevelopJ:?-ent to call u pon other ~ ederal age1:1cies for data and other materials he needs to carry out his metropolitan development res_pon-' sibilities and to assist the P residen t_ in coo~dinating the metropolitan developn::i-ent effor ts_ of other agen~ies. Directs all Federal agencies engaged m metr opolitan programs, m order to assure full coordination of such programs, to consult with and seek advice from all other significantly affect ed Federal agencies. METR OP OLITAN EXPEDIT ERS S ection 203.- Authorizes the Secretary, u pon request of authorized local officials of the central city in any metropolitan area to appoint for an)'." metr opolitan ar~a a "metropolitan ex_p~diter" to' provide information , d ata, and assistance to locRl: aut~or1ties, organizations, and persons and to relevant ~e~~ral agencies with. respect to the Department's programs _and activ1t1~s f!,nd ot~~r related_ activities and needs in the area. P r10r to appomtmg a metropolitan expediter " the Secretary is required to. con ult wi~h local government auth'orities through ou t th e metr9politan area 'Ylth respect to the desirability of making such a~ appomtment and with respect to the individuals who might be appomted. . · �DEMONSTRATION CITIES AND METROPOLI TAN DEVELOPMENT ACT 13 COORDINATI ON OF F E DER A L A IDS I N M ETR OPOLITAN AREAS Section 204(a).- Requires th at, after June 30, 1967, all applications for Federal loans or gran ts to assist in carrying ou t projects for opensp8:ce land, hospitals, airports, libraries, water su pply and distribution facilities, s~werag~ _f~cilities and waste treatment works, highways, tr!1nsportat10n facilities, or water development and land conservation within any metropolitan area shall be submitted for review t o an a~ency which is designated to perform metropolitan or regional planmng for the area within which the assistance is to be used and which is, to the greatest extent practicable, composed of or responsible to local elected officials. Further requires that if such an application is made by a special-purpose unit of local government, it must also be ~ubrnitted to the general local governments with authority to operate m the area within which the project is to be located. S ection 204(b).- Requires each such application t o be accompanied by (1) the comments and recommendations of the areawide agency and general local governmen ts t o which the application h as been submitted for r eview, and (2) a statement by the applican t that- such comments and recommenda tions have been considered prior to formal submission of the application . The application, however, need n ot be so accom panied if the applicant cer tifies th a t a plan or description of the project bas lain before an appropriate areawide agency or instrumentality or general local government for 60 days withou t comments or recommendations thereon having been made. Section 204 (c) .-Au tborizes the Bureau of the Budget or such other ag.ency as design ated by the President, t o prescribe such r ules and regulations as are deemed appr opria te for the effective administr ation of this section. GR ANT S TO ASSIST IN PLA NNED MET RO POLITA N DEVELOPME N T Section 205(a) .- Au t.horizes the Secretary to m ake supplementary grants to State and local public b odies and agencies carrying out metropolitan projects meeting the requiremen ts of this section. Section 205(b).- Provides th at gran ts may be made under this section only for projects in m etropolitan areas for which it has been demonstrated, to the satisfac~ion of the Secre~ary , tha_t (1) metropolitanwide comp rehensive planmng and programmg provide an adequate basis for evaluating. . . . . . (A) the location, fin ancmg, and schedulmg of mdividual pubhc facility projects wheth er or not feder ally assisted ; and (B) oth er proposed land developm ent or uses, where such projects or uses- because of t heir size, density, type, or locationhave public metropolitanwide or interjurisdictional significance ; (2) adequa te metr op olitanwide _institution al or o~h_er arrange!Il~IftS exist for coordinating local public development po~mes ~1;1d actryi ties affecting the development of the area ; and (3) public facility pr o3ects, and other land development or uses (public or pr~vate) w~ ch hav:e a major impact on the developmen t o~ the ~r ea, are m fact ~emg carr~ed out in accord with such metropolitanwide comprehensive plannmg and programing. 71()-74<2 0 -6 ~3 �14 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT S ection 205(c) .-Requires the a_pplican t for a gran t under this section (and also the unit of general local government where that is a different body) to demonstrate t?-at it is a1equa tely ~ssuring t1?-at public facility ~ d other loc!Ll: pro3ects a:re bemg, and w 1~ be, carr~ed out in accord with m etropolitan planmng and programing meetmg the requirements of subs~ction (b) . . . . S ection 205(d) .-ReqU1res the Secretary, m m aking the determinations required under this section, to obtain and give full consideration to the comments of the State or local bodies responsible for comprehensive planning and programing for the metropolitan area. S ection 205(e) .-Pr ovides that no grant m ay be made under this section wi th respect to a metropolit an developm ent project for which a Federal grant h as b een made, or a contract of assistance h as been entered into, prior to February 21 , 1966 (date of first submission of this legislation to the Congress) , or more than 1 year prior t o the d ate on which the Secretary h as made the deter minations required under this section with respect to the applicant and the ar ea in which the project is located. The subsection furthe! provides that, with r espect to a project for which a con tract of assist ance is en tered into after June 30, 1967 , no gr ant m ay be made under this section unless an application for the grant h as been m ade on or b efore the d ate of such contract. S ection 205(1).- States that nothing in section 205 sh all authorize the Secret_ary to require, or _condition the av ailabili~y of a grant, upon the adoption by a community of a program to achiev e racial balance or eliminate r acial imbalance within sch ool districts wi thin a m etr opolitan area. E X TENT OF GRANT S ection 206(a).- Limits a gr ant under section 205 to the least of (1) 20 percent of project cost , (2) the amoun t of the basic Federal grant to the project, or (3) the difference ~etw:een 80 percent of projec t cost and .th e to tal other Federal contribu tions to the project. No grants could be provided for projects or activities on the basis of which assist ance is for a comprehensive demonstration cities program under the bill. S ection 206(b) .-Authorizes gr an t approJ>riations of up to $25 million for fiscal y ear 1967 and u p to $50 million for fiscal year 1968. CO NS ULTATIO N A ND CERTIFICATION S ection 207. -R equires the Secretary (1) in issuing regulations and otherwise carrying out his authority under section 205, to consult with the D ep ar tments of the Interior , Commerce, and Health Education and Welfare, and th e Federal Aviation Agency with respdct to metro~ politan developm;e~t projects assisted by them;. and (2) for the purpose of det ermmm g gran t amounts, to accept thHr respective certifications as to the cost of those projects and the amount of the non-Federal contribution paid or to be paid to that cost. - �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 15 DEFINITIONS . Section 208.-Defi.nes certain terms in title II of the bill, including the following: (1) "Metropolitan development" means all projects or programs for the acquisition, use, and development of open-space land; and the planning and construction of hospitals, libraries, airports, water supply and distribution facilities, sewerage facilities and waste treatment works, transportation facilities, highways, water development and land conservation, and other public works facilities. (2) "Metropolitan development project" (as used in secs. 205 and 207) mearis a project assisted under the following specified Federal programs: (a) Grants for basic water and sewer facilities, administered by the Department of Housing and Urban Development under section 702 of the Housing and Urban Development Act of 1965· (b) Grants for library facilities, administered by the Depar~ ment of Health, Education, and Welfare under title II of the Library Services and Construction Act; (c) Grants for hospital and medical facilities, administered by the Department of Health, Education, and Welfare under section 606 of the Public Health Service Act; (a) Grants for construction of sewage treatment works, administered by the Department of the Interior under section 8 of the F eder al Water Pollution Control Act,; (e) Grants for highway construction (Federal-aid primary and secondary systems and urban extensions, but not the Interstate System) adm inistered by the Department of Commerce under section 120(a) of title 23 , United States Code; Cf) Gran ts for airport development, administered by the F ederal Aviation Agency under section 9 of the Federal Airport Act · (g) Grants for urban m ass transportation facilities and equipment, admin istered by the Department of Housing and · Urban Developmen t under section 3 of the Urban Mass Transportation Act of 1964; (h) Gr ants for acquisition and development of open space, for urban beautification and improvemen t , or for historic preservat ion administered by the Department of Housing and Urban D ev~lopmen t under t itle VII of the Housing Act of 1961 (the historic pr eservation provisions are added to title VII by title VI of this act) ; (i) Grants for the acquisition an~ ~evelopment of lands and waters for recreational purposes, adm1mstered by the Department of the Interior under section 5(e) of the Land and Water Conservation Fund Act of 1965 ; and ( j ) Grants for public works and facilities in redevelopment areas administered by the D epartmen t of Commerce under section io1(a)(l) of the Public Work s 'and Economic Development Act of 1965 (but only if they involve works or facilities of a type which the Secretary d etermines t o be eligible under one of the programs listed in paragraph s (a ) throug~ (i) above). �16 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT (3) "State" to include any State of the Unite~ S tates, the _District of Columbia the Commonwealth of Puerto R1co, any t erritory or possession ot'the United States, or an agency or instrumentality of any of the foregoing. (4) "Metropolitan area" as a standard metro~olitan statistical_area as established by tbe Bureau of the Budget, sub3ect to such modifications and extensions as the Secretary may determine to be appr opriate. (5) 0 Unit of general local government" _a~ any city,_ ~ounty, town, parish, village, or other general purpose p olit ical subd1vis1on of ·a State. STATE LIMIT Section 209. -Provides that grants m ade under section 205 for projects in any one State shall not exceed in the aggregate 15 percent of the aggregate amount of funds authorized to be appropriated pursuant to section 206(b) . TITLE III-FHA INSURANCE OPERATIONS FHA M OR TGAGE FINANCING FOR VETERANS Section 301.- An;i.ends section 203(b) of the National Housing Act (FHA's regular residential mortgage insurance program) to provide that the special liberal terms for veterans enacted in 1965 (100 percent loan-to-value ratio up to $15,000, 90 percent from $15,000 to $20,000, and 85 percent over $20,000) will be available to a veteran even though he has previously received a VA direct, gu aranteed, or insured home loan . AREAS AFFECTED BY CIVIL DISORDERS S ection 302.- Amends section 203 of the National Housing Act to authorize FHA to insure housing mor tgages under that section on the basis of acceptable risk rather than economic soundness if it is determined tha~ ~he ~ousing is located in an area or areas where rioting or other c1v1c disorders have occurred or are threatened, and as a result, the property with respect to which the mortgage is executed cannot meet the normal economic soundness requirement and the property is an acceptable risk, giving due consideration to' the need for providing low- and moderate-income housing in the area. COOPE RATIVE HOUSJNG INSURAN CE FUND S~tions 303 . (a) and (b).-Amend sectio_D:s 2~3 (m) and (n) of the · N at1onal Housmg Act to make changes facilitatmg the administration of FHA's new mutual cooperative management housi!?-_g insurance fund. These changes would permit mortgagees to use FHA 's general insurance fund debentures for paying p_remiums on cooperative housing mortgages transferred to the cooperative fund and to use cooperative fund debentures i~sued on transfened ~ortgages for the payment of general fund premrnms, and would permit the transfer of cooperative mortgages to the new mutual fund without the mortgagee's consent. S ection 303(c) .- Amends sections 213 (k) and (l) of the act to direct the transfer to the new fund of the specific net assets attributable to the insurance transferred to that fund, and to remove the provision I.._ �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 17 requiring (before payment of any dividend) the repayment of any general funds transferred to the new fund. SUPPLEMENTARY FINA NCING FOR COOPERATIVE HOUSING S ection 304.-Amends section 213(j) of the National Housing Act to permit insurance of supplementary loans finan cing improvements ~nd community facilities provided in connection with existing FHAmsured coopera tive housing, with amounts up to 97 percent of the value of such improvements and facilities, even though financing to that extent would increase the mortgage indebtedness above the original mortgage amount (so long as it would not increase such indebtedness above t he statutory maximum). · MORT GAGE LIMITS U N DER S E CTION 220 S A LES HOUSING MORTGAGE I N S U R A NCE PROGRA M Section 305(a).- Amends section 220(d)(3)(A) of the National Housing Act to lower the required downpayment on section 220 urban ren ewal sales h ousing b y reducing from 25 to 20 percent the increment of such d ownpayment attribut able t o the portion of replacement cost ab ove $20,000 , m aking the section 220 program consistent in t his respect wi th the section 203(b) program . Section 305(b).-Extends to t he sec tion 220 sales h ousing program a special liberalized loan-to-replacement -cost ratio for veterans (100 percent of the first $1 5,000, 90 p ercent of the next $5,000, and 15 percent of all over $20,000), in t h e manner already provided under section 203(b) . I NC REASED MORT GA GE LIMITAT IONS UN DER SECTIO N 22o(d)(s)(B) FOR SMA LL PR OJE CTS CON T AINING LARGE FAMILY DWELLIN G UNITS Secti ons 306 (a ) and (b) .- Amend section 220 of t he N ation al Housing Act to authorize t he Secretary to increase by up t o 25 percent the existing dollar limits on t he amount of an insured mortgage .fin an cing reh abilitation of 2 3, or 4 or more bedroom units in h ousing in an urban renewal are~ where the reh abilitation project involves not more than five family units. This will permit d ollar limits up to $18,750, $23,1 25, and $26,250 for 2, 3, or 4 or more bedroom units in such cases in lieu of $15,000, $1 8, 500, and $21,000. In addition, the 45 percent in?rease in t he <iollar li~ts permitted f 9r high-cost areas is als~ pernnt te~ to ?e made applicable to the higher d ollar limits aut h orized by this sect10n . MORT GAGE LIMITS FOR HOMES UNDER S E CTIO N 221(d)(2) Section 307.-Amends section 221 (d) (2) of the National Housing Act to increase from $11 ,000 t o $12,500 in the case of a single-family dwelling and f~om $18,000 t o $20,000 in the case _of a two:fa~ y residence t h e maximum mortgage amount for d wellmgs of this kind under FHA's mortgage insurance program for moderate-income and displaced families . �18 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT NONDWELLTNG F ACILITIES I N SECTION 221 R ENEW AL A REAS PROJECTS I N U RBA N S ection 308 .-Amends section 221 (f) of the N ational H ousing A ct to broaden the class of nondwelling facilities which can b e included in a project in an urban renewal area covere~ b y a_ m ?rtgage insured under section 221 , where the mortgagor waives his right to make a profit on a~y comm~rcial a!1~ . community facilities so inclu~ed. The additional nondwelling facilities must b e found to be desirable and consistent with the urban renewal plan, and to contribute t o the economic feasibility of the project (giving due con sideration to its possible effect on o_ther local ~usiness ell:terp:r:ises); and in any case the project must remam predommantly residential. SINGL E OCCU PANTS TN SECTION 221 ( d) ( 3) HOUSI NG S ection 309 ...:.._Amends section 221 (f) of th e National Housing Act to permit up to 10 percent of the units in 3.1: F HA section 221(1) (3) project to be occupied by low- or m oderate-m come nonelderly sm gle persons. E xisting law permits occupancy by a sin gle per son who is 62 years of age or over, or who is h andicapped. I NSUR AN CE OF M ORTGAGES UNDE R SECTION 221 T O F I N ANCE P U R CHASE AND REHABILITATION BY NONPROFIT ORGANIZATIONS OF H OU SING FOR RESALE TO LOW- INCOME PURCHASERS S ection 310(a) .- Adds to section 221 of the National H ousing Act a new subsection (h), auth orizing the insurance of mortgages (n ot exceeding $20 million ou tstanding at any one time) executed by private nonprofit or ~anizations to fin ance th e purch ase and reh abilitation of deterioratmg or sub standard h ous:fii for resale to lowincome purch asers (i.e., individuals and fa · ·es h aving incomes below the m aximum wi th which th ey could q ualify under the rent supplem en ts program). To be eligible for insuran ce under the new progr am , a mor tgage will h ave to cover prop erty or properties containing five or more single-family d wellings of detached, semidetach ed, or row construction (wh ether or not on the same or contigu ous property) . The mortgage amount cannot exceed the. ap praised value of the property when purch ased plus the estimat ed cost of the proposed r eh abilitation; the m ortgage will bear interest at the submarket rate provided for section 221(d )(3) m ortgages (3 percent) , and will h ave a maturity determined by the Secretary . The mortgagor will have to agree to sell the rehabilitated dwellings t o low-income purchasers wh ose indiYi dual m ortgages will also be ~nsured under the new program; each such individual mortgage will be in an amount equal to t h e portion of the principal mortgage which is allocable to the individual dwelling, will bear int erest at the same r~te as the principnl mortgage, and will h ave a maturity equ al to the remaining m aturity of the princip al m or tgage. T h e pmchaser will pay at least $200 down, which may be applied · to closing costs. Upon the sale of an individual dwelling t o a low-income p mchaser, such dwelling will b e released from th e lien of the principal m ortgage ; the insurance of the principal mortgage will be terminated when all such dwellings h ad b een sold, without payment of any adjust ed pre- �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT }9 mium charge, and until that time the dwellings remaining unsold will be held a~d operated ~y the nonprofit mor tgagor. as though t hey were rental u~its m a sect10n 221 (d) (3) submarket-rnterest-r ate project. The low-rncome purchaser must be buying the dwelling for his own occupancy; if he d oes not continue to occupy the prop erty, t he submark,et ra te will t erminate and the interest rate will rise to the highest pe_rJ?--issible section 221 rate, unl~ss he h as resold the property to the on grnal nonprofit m ortgagor or b:as sold it to the local public housing agency or to another approved low-income purchaser. S ecti on 310(b).- M akes conforming amendments to section 221(g) of th e act (relating t o p ayment of insurance). S ecti on 310(c).- Amends section 221 (f) of the act to authorize full or p artial waiver of t he m ortgage insurance premium to assist low- and moderate-incom e families to obtain housing through t he new section 221 (h) program , t h e sam e as was previously authorized for section 221 (d) (3) ·mortgages. S ecti on 310(d) .- Am ends section 305(h) of the act to authorize FNMA sp ecial assistance for m ortgages insured under the new section 221(h) program, t he same as was previously authorized for section 221(d)(3) m or tgages. APPLICAT ION OF DA VI S- BACON ACT T O COOPERATIVE HOUSING P R OJECTS . INSURED U N DER SECTIONS 22 l (d ) (3) AND (4) AND MORTGAGE S INSURED U NDE R SECTION 221 (h ) (1) Section 311.-Amends section 212 (a) of the National H ousing Act to m ake the prevailing wage provisions of t he D avis-B acon Act applicable to work perform ed under blanket m or t~ages (financing purch ase and rehabilitation by nonpr?fit org_a nizat10ns of housing for resale to low-income purchasers) which a re IDSUred under t he new sectioB 221 (h) (1) program (added by section 310 _o f t he act) and which cover property including more than eight dwellIDgs. I t permits the waiver of su ch provisions, however , where t he prospect ive owners or others voluntarily donate t heir services without compensation in order t o lower costs. This section also perm its t he wa}ver of ~he prevailing Wf!,g~ provisio1;1s of the Davis-Bacon Act (other wise applicable under ex1stIDg law) ID cases involving the construction of cooperative housing projects covered by mor tgages insured . 1;1n der sections 221 (d)_ (3) and (4) to enable t he low-incom e families and ot hers who will occupy the projects to lower their h ousing costs by donating their services with ou t compensation in the construction. WAIVER OF DEDUCTION ON ASSI GNMENT OF PROPERT Y T O SECRE TAR Y IN LIEU OF F ORECLOS URE Section 312.- Adds to t it le V of the National Housing Act a new section 523, authorizing t he Secretary to waive the I -percent deduction from insurance benefits, which is generally made when the mort~agee, under a multifamily housing or land deyelopment mortg~ge ID default, assigns the mortgage to t he Secretary IDst ead of foreclosrng and then conveying title. �20 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT TITLE IV-LAND DEVELOPMEN T AN D NEW COMMUNITIES Title IV of the act expands the FHA m or tgage insurance program for privately financed land development ~nd er t itle X of t he National Housing Act (enacted as par t of the H ousmg a nd Urban Development Act of 1965) by authorizing the Secretar y to insure mor tgages under t he program. 1which will fin ance " new communit ies," a nd by incr easing the m aximum outst anding mortgage amount p ermitted under t.h e title X program . Cer tain special aids are also provided for t he new communities. EXPERI ME N T AL MORTGAG E I NSURANC E P ROGRAM FOR N E W COMMUN ITIES Section 401 (a).- Adds t o title X of t he N ational Housing Act a n ew section 1004, aut horizing t he Secr etary to approve "new communit ies" for mortgage insurance under t itle X if_ t hey s3:tisfy all other requirements under the t itle, and m eet the special r eqmrements of t he section. The aggregat e amount of m or tgages insured and ou tst anding at any one time with respec t t o new communit ies cannot exceed $250 million . No development may be approved as a new community unless the construction of such development has b een approved by t h e local governing body or bodies of t he locality or localities in which it will be located and by t he Governor of t he State. However, in "home rule" cases ; t hat is, if the locality or localities have been delegated general powers ·of local self-government by State law or constitution (as determined by t he Secr etar y), t he approval of the Governor shall not be required . A development will be eligible for approval as a n ew community if the Secr etary determines t hat it will, in view of its size and scope, make a subst ant ial contribut ion to t he sound and economic gTowth of t he area ,vit.hin which it is located in th e form of(1) Subst antial eco nomies, made possible through large-scale development, in t he provision of improved residential sites ; (2) Adequate housin g to be provided for those who would be employed in t he comm unity or t h e surrounding area; (3 ) Maximum accessibility from th e new residential sites to industrial or oth er em ployment centers and commercial, recreational, and cultural facilities in or near t he community; and (4) M a:>,.'i.mum accessibility to any major centr al city in the nrea. The obj ectives and pl anning criteria for th e title X land development program are also ap plicable with respect to new communities. The Sec~etary will , under th e regular already enacted provisions of title X, review th e site development plan to determ ine that it is consistent with overall comprehensive plans or planning actually being carried out for th e area in which the comm unity is to be located. Section 401 (b).- P rovides that no mortgage with respect to a new communi ty may b e insured after October 1, 1972, except pursuant to a commitmen t to insure entered into before that date. �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 21 MORT GAGE AMOUNT AND T ERM Secti_on 402 (a ).- A.m ends section 1002(c) of the National H ousing Act t9 mcrease from $ 10 to $25 million the maximum mortgage amount _perrrutted at any one time for a single land development m ortga()'e under title X . This makes possible sufficient credit assistance f~r very large developments, including new communities. Section 402(b).- A m ends section 1002(d ) of the Na tional Housin()' Act to exempt new communities approved by th e Secretary from th~ ! -year maxim um mor tgage ma turity generally applicable under existmg law t o m or tgages under the land dev elopment program. Such an exemp tion is already provided in th e case of privately owned water _or sewerage system s. ENCOURA GEM ENT OF SMALL BUILD ERS Section 403.- A m ends prior section 1004 of the National H ousing Act (redesignated by this new law as section 1005) to ma ke it clear that the present requiremen ts for enco uraging broad par ticipation by builders in the land development program a re intended to enco urage participation particularly by small builders. WAT ER AND S E W E RAGE FACILITIES Section 404.-A.mends prior section 1005 of the N ational H ousing Act (redesignated section 1006) to require that in th e case of a new ~ommunity approved by the Secretary the land shall be ser ved aft er its development by public ystems for w~ter and sewerage which are consistent with other existing or prospective systems in the area, with several exceptions. In the case of water systems, the land may be served by privately or cooperatively ?wn~d sys tems consistent with other existing or prospective systems m the area which are approved as adequate by the Secretary, iue regulated or s_uper vised by the State or political subdivision or agency thereof, or (m th e absence of such State or local regulation or supervision) are otherwise regulated in a manner acceptable to him with respect to user rates and charges, capital structure, methods of operation, rate of return, and conditions of any sale or transfer. In the case of sewerage systems, the land may be se: v:ed b:y: e~isting privately or cooperatively owned systems \m9 er conditions sinnlar to those with respect to water sys~erns. If 1t is necessary to develop a new system, it must be a _public system unless ~he Secreta~y determines that public ownership of a new system 1s not feasible. In such a case t he land may be served by an adequate privately or cooperatively owned new system, but only under the following conditions: · ( 1) The Secretary finds the system consistent with other existing or prospective systems within the area; . . . (2) The system will be r~gulated (or_superv1sed) durmg ~~e period of such private or cooperative ownership by_~ State or poh ~1cal ~ubdivision or in the absence of such supervision or regulation, m a manner' acceptable to the Secretary with re~pect to user rates and charges, capital structure, methods of operation, and rate of return; and 710-7 42 0---00---4 �22 DEMONSTRATION CITIES AND MET ROPOLITAN DEVELOPMENT ACT ( 3) The Secretary receives assuran ces satisfact or y t o him with res pect to eventual public ownership and op er ation of t he system and wit h respect to the conditions and t erms of any sale or transfer. F N MA SPECIAL AS S I S T ANCE FOR NEW C OMMUNITI ES Section 405 .-Amends section 302(.b) of t he Nation al H ousing A ct to m ake FHA-insured mor tgages wi th r espect to new commuruties elio-ible for purchase by the Federal N ational Mortgage Association under its special assistance program. U RBAN PLANNING GRANT S Section 406.- Amends section 70l(a) of the Housing Act of 1954 to make urban planning grants ther eunder available to official governmental planning agencies for areas where n ew communities are t o be developed with mortgage insurance assistance under t he progr~m. P U BLIC F ACILITY L OANS Section 407.- Amends section 202 of the Hou sing Amendmen ts of 1955 to waive .the p opulation limi t (50,000) on the p olitical jurisdictions eligible to receive public facility loans t hereunder in the case of public facilities serving n ew communities wi t hin such jurisdictions. TITLE V -MORT GAGE I NSU RANCE FO R GROU P P RACTICE F ACILITIES PURPOSE Section 501 .-States that it is th e purpose of title V to assure the availability of credit on r easonable terms to units or organizations engaged in the group practice of medicine, optometr y, or d en t istry (p ar ticul_arly those in sm aller co~uni_ties, and those ponsored b y cooperat1ye or other i:ionprofit orgamzat10ns) to assist in financing t he construct10n and eqw pment of group practice facilities. E STA B LISHMENT OF P R O GR AM S ection 502 (a) .-Adds to th e ational Housino- Act a new t itle X I a uthorizing mortgage insura nce for group pract ic~ facilities. The ne~ title provides as follows : Section 1101. -I nsurance of mortgages Subsection (a) ~uthorizes the Secretary of Housing and Urb an D evelopment to msure and mak e commitments to insw·e mort~a ges financing group practice facilities. No mortga.ge may be msured after October 1, 1969, except ptu-suant to a commitment issued before that date. Subsection (b) requires that the mor tgagor (which must be a " group practice unit or organization") and the morto-ao-ee be approved by the Secr etary, ~J?.d that the mortgage cover pr~perty to be co ns tructed or r~~ab1_h tated for use as a "group pra.ctice facility." It also proh1b1ts msurance of any morto-ao-e imless the applicant shows ~nability to o_btain the mortgag; l~an on comparable terms without such msurance. The facility m ust be �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 23 constructed in an economical manner and not be of elaborate or extravagant design or materials. Subsect~on (c) limits the amoun~ _of a mortgage to 90 percent of the estimated value of the facility after construction or rehabilitation and $5 million. Maturity of a mortgage cannot exceed 25 years, and the interest rate cannot exceed 6 percent. Subsection (d) makes the Secretary's insurance contracts conclusive evidence of eligibiJity for insurance, and incontestable in the hands of an approved mortgagee except for fraud or misrepresen ta..tion. Sub.section (e) requires the mortgagor to agree to use the property as a group practice facility as long as the insured m ortgage is outstanding. Subsection (f) requires the mortgagor and mortgagee to keep such records and make sucn rep orts as the Secretary may require and to permit examination of their records by the Secretary. ' S ection 1102.-Premiums This section authorizes the Secretary to fix premiums of not m ore th an 1 percent, payable in cash or debentures, for mortgage insurance ~der th~ program,. and to_ impose appropriate charges for analysis, appraisal, and mspect10n as well as an adjusted pr emium ch arge in case of prepayment. Section 1103.-Payment of insurance benefits This section provid es for payment of insurance benefits under th e new pr ogram (from the gen~ral insurance fund) in the same manner as under FHA's section 207 regular rental housing pr ogram. Section 1104. - Regulati ons This section au thorizes the Secretary ..to prescribe the regulations necessary to carry out t he new I?rogr am , after consulting with the Secr etary of H eal_th , Educat10n, and Welfare on the health and medical matters m v olved . Section 1105. - Administrati on Subsection (a) authorizes the Sec;1"etary to provi~e technical assistance in planning and cons~ructmg grou_p practice facilities, at the r equest of persons oper atm g or plannmg the operation of such facilities. Subsection (b) authorizes the Secretary, in order to avoid unnecessary duplication, to use (and_ pay for) existing services and facilities of other Federal agencies under agreements with the heads of such agencies. Section 1106. -Definitions This section defines the principal terms used in the new title XI including "group practice fac~lity:, ',',ll;~dical or dental_ gr~up,'l "group practice unit or orgaruzat10n, . nonprofit orgamz at10n, " "State," "mortgage," "1?_or ~99:gee," 8:Il:d "mortgagor.".. A "group practice facility 1s a fa:mlity _for th_e provis10n (by a medical or dental group) o~ medical (m cludmg os teop athic), optometric, or dental diagnosis, care and t reatment for ambula- �24 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT tory patients, under the supervision of appropriately licensed . . . . professional personnel. A "medical or dental group" is a partnership or o ther associat10n or aroup of physicians (including osteopa thic physicians), optometr~ts or dentis ts, or combination thereof, who lllldert ake the coordina ted practice 'of their profession in one or more_group practice facilities sh aring overhead expenses, records, equipment, and staff and who make available at leas t such health services as m ay be r~quired by the regulations prescribed under section 1104:. A. "group practice unit o_r o~ganizat_ion" ~an be (t,..) a ~nvate nonprofit agency or orgamzat10n which will provide, directly or through arrangemen ts with a ~edical or dental group, comprehensive medical care, op t ometric care, or dental care, or any combination thereof (which m ay include hospitalization), to members or subscribers primarily on a group practice prepayments b asis ; .or (B) a private nonprofit agency or organiza tion established for the purpose of improving the av ailability of medical, optometric, or dent al care in th e community or h aving some function or functions related to th e provision of such care, which will through lease or other arrangement, m ake the group practice facility with respect t o which assistance h as been reques ted under this title available t o a medical or den t al group for use by it. A "nonprofit organization" can be a corporation, association, found ation, trus t , or other organiz ation n o p ar t of the net earnings of which inures, or may lawfully inure, to the benefi t of any private sh areholder or individual except, in the case of an organization the purposes of which include th e provision of personal health services to its members or subscrib ers or th eir dependents under a plan of such organiz ation for the provision of su ch services to them (which plan m ay include the provision of other ser vices or insurance benefits to them) , through th e provision of su ch health services (or such other ser vices or insurance benefits) to such m embers or subscribers or dependents under such plan. · S ecti o:i 502 (b) .- A~en~s se~tion 227 of th e National Housing Act to reqmre cost cer tificat10n m th e case of grou p practice facility fin anced with a m ortgage insured under th e new program. L AB OR ST ANDA RD S S ection 503.-Amends section 212 (a) of th e National Housina Act to r~quire complia~ce with the pr1:vailing wage provi ions of the D avis-Baco_n Act m the. construction of grou p practice facilities fin all:ced with m ortga~es msured under th e new program. It also reqmr~s paymen t of _t~ e ~nd a h alf for work _performed in the construct10n of these fac1ht1es m excess of 8 hours m a day or· 40 hours in . a week. AMENDME NTS TO OTHER FED ERAL LA \VS Section 504 (a) .-Amends section 5136 of the Revised Statutes to exempt nat~onal b anks, wi th re pect to t~eir de8:l~gs in and purchases of insured title XI mor tgages, from certam restnct10ns and limitations which would otherwise app~y, a~d al o amends ection 24 of the Federal R eserve Act to penmt nat10nal banks to make insured title XI �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 25 loans without regard to certain restrictions and limitations which would otherwise apply. Section 504(b).-Amends section 304 of the Trust Indenture Act of 1939 to exempt securities issued under an insured title XI mortgage from t~e requrrements of that act (and from the Securities Act of 1933). Secti on 504(c).- Amends section 263 of the Bankruptcy Act to make that act inapplicable to creditors under an insured title XI mortgage. TITLE VI-PRESERVATION OF HISTORIC STRUCTURES PRESERVATION OF HISTORIC STRUCTURES AS PART OF URBAN RENEWA L PROJECTS Sections 601(a)- (c).-Amend section 110 of the Housing Act of 1949 to specify that an urban renewal flan shall provide information on proposed historic and archit ectura preservation activities· that the acquisition and restoration of real property within the 'urban renewal area to promote historic and architectural preservation may where necessary for that purpose, be an urban renewal project ac~ tivity; and that the relocation (within or outside a project area} and restoration of properties of historic or architectural value will also be eligible as urban renewal project activities. LOCAL GRANT-IN-A ID CREDIT FOR RELOCATION AND RESTORATION OF HISTORIC STRUCTURES S ection 602 .-Amends 110(d) of the Housing Act of 1949 to authorize "local gran t-in-aid" credi t for assistance provided by a public body in relocation and restoration activities related to properties of architectural or historic value. GRANTS TO NATI ONAL TRU ST FOR HISTORIC PRESERVATION TO COVER RESTORA TION COST S Section 603(a) .-Authorizes the Secretary t o make grants from funds appropriated therefor , _in a~ounts up t? $90,000 per structure, to the National Trust for Historic Preservation to cover the cost of restoring_ structures of historic or architectural value which such trust will maintain for historic p urposes. Section 603(b).- Authorizes app~opriation s of such sums as may be necessary for grants under subsect10n (a) . URBAN PLANNING GRANT S F OR SURVE YS OF HISTORI C STRUCTU R ES Section 604.- Amends section 701 o~ ~he Housing Act of 1954 by adding a new subsection (h), a~t_hor~z~g the Secre~arr to m ~ke grants to assist cities, o~her D?-un~c1palities, and counties m making surveys (in accordance with cn tena ~omp ar ab~e to those used by the Secretary of the Interior fo:r: the_ N at10nal _Register) of str1;1ctures and sites determined to be of historic or ar chitectural value m order to identify such structures and sites, ~etermine th~ cost ·of ~heir r ehabilitation and restoration, and proVIde related mfo_rmat10n. Such a grant, which could be in an amount up to two-thirds ?f the cos~ of the -survey involved, would be made_ to the appropnat~ plan~nng agency as presently provided for or (1f no such agency 1s qualified �26 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT and willing to receive and use the grant for such survey) directly to the city or municipality. GRANTS FOR HISTORIC PRESERVATION S ection 605(a).-Amends the heading of title VII of the Housing Act of 1961 to refer to grants for historic preserv ation as well as those for open-space land and urban ~eauti:fication. S ection 605(b) .-Amends section 701 of the 1961 act to state that there· is need for t imely action to preserve and rest ore areas, sites, and structures of historic or architectural value. S ection 605(c).-States that title VII of the 1961 act may be used to assist in preserving areas and properties of historic or architectural value by their acquisition, improvement, and restoration . Section 605(d).-Amends section 702(e) of the 1961 act to require consultation and exchange of information (including current listings on the National Register) between the Secretary and the Secretary of the Interior in connection with historic preservation gran t s . S ections 605 (e) and (j).-Amend sections 706 and 708 of the 1961 act to authorize $10 million for 90-percent gran ts for demonstration projects in historic preservation or open-space activities, as well as in urban beautification. S ecti on 605(g).-Adds provisions t o the 1961 act to authorize the Secretary to m ake up to 50-percent grants t o States and local public bodies for the acquisition, restorat ion , or improvement of areas, sites, and structures of historic or architectural value in urb an areas in accord with the comprehensively planned development of the locality. S ection 605(h).-Provides that no grants for historic preservation may be made under the urban renewal, urb an planning, or op en space and urban beautification progr am s, beginning 3 years after the d ate of enactment of this act, except for activities in accord with criteria which the Secretary establish es as comparable to th ose used in connection with the Nat ional Register which is to b e m aintained by the Secretary of the Interior. TITLE VII-UR;BA N RE N E WAL LOCAL GRANTS-IN - A ID S ecti_on 701.- Amends section llO (d) of th e Hou sing Act of 1949 to authorize the ~ecretary t o count as a local grant-in-aid credit 25 percent of ex:p~nd1t ures, or $3 .5 _million , \~hichever is less, for a publicly owned fac~_h ty, the con struction of which was begun not earlier than 3 years prior to the dat e o~ e_n~ctmen ~ <?f th e act, if such facility (a) is tg b~ used for c~ltl!-ral, e~1b1t~on or civic purp oses, or for a city hall or publi_c safety buildmg, or 1s built or r eh abilitated by a public university and _is t o be used for_ tr_e atm ent of physical or mental disabilities or m~d1cal resear?h ; (b) 1s m or ?ea~ the urban renewal project; (c) contr1b~t es m aten a~y to. t1:1,e obJect1ves of the urb an renewal plan; and (d) 1s n ot otherwise eligible as a local gr an t-in-aid . AIR RIGHTS SITES IN URBAN RENEWAL PROJ ECTS Sections 702 (a) and (b) .- Amend sections llO(c) (1) and (7) of the H ousing Act of _1949 to_permit air rights_sites in u!·ban renewal projects to be used for mdustr1al development 1f determmed to be unsuitable �DEMONSTRATION CITIES. AND METROPOLITAN DEVELOPMENT ACT 27 for use for low- _and moderate-income housing. It also permits the co.st of construct10n of foundations and platforms for air rights industrial sites to be counted as part of gross project cost. · ADDITIONAL REQUIREMENTS FOR REDEVELOPMENT OF URBAN RENEWAL AREA Sections 703 (a) and (b).-Add to section 105 of the Housing Act of 1949 a requirement _that any lJ!ban_renewal a_rea whi_ch is being redeveloped for predommantly residential uses will provide a substantial number of units of standard housing of low and moderate cost and ~es_ult ~n marked pro~ess in serving P?Or an~ _dis~dvantaged people liVlilg m slum and blighted areas. This provis10n is made applicable only.to urban renewal projects undertaken pursuant to urban renewal plans approved after the date of enactment of the act. THREE-FOURTHS GRANTS FOR PROJECTS IN CERTAIN REDEVELOPMENT A REAS Section 704.- Provides capital grant assistance on a three-fourths rather than on the usual two-t hirds basis to urban renewal project~ in municipalities situated in areas which , at any time after a loan and grant contract has been en tered into (before completion of the project) were designated as " redevelopment areas" under the Public Works and Economic Development Act of 1965 (or its predecessor the Area Redevelopment Act) . EXPENDITURES BY EDUCATIONA L INSTITU TIONS AND HOSPITALS Section 705.- Amends section 112(a) of the Housing Act of 1949 to provide that costs incurred by universities and hospitals in connection with urban renewal projects shall, to the extent · such expenditures are otherwise eligible, be deemed eligible as . local grant-in-aid credit if the facilities land buildings, or structures m volved by the expenditures are locat~d within 1 mile of the urban r enewal project. · SEWER SYSTEMS IN REDEVELOPMENT OF U RBA N RENEWAL AREA Section 706.- Adds to section 105 of the Housing Act of 1949 a new subsection (gl to the ~:£feet ~hat contracts for l~ans or capital grants shall require that cons1derat10n has been given m the redevelopment of any urban renewal project, to the development of a sewer system to ser ve the urban renewal area which will, to the maximum extent feasible, provide for effective control of storm and sanitary wastes. TITLE VIII-RuRA L HousrnG Section 801 .-Amends section 501(a) of t~e.Housing Act of 1949 to remove the present requireme~t that_ e:1'1stmg farm and _nonfarm rural dwellings and farm se~;vice _bwldmgs p~c~1ased with rural housing loans must have been previously occupied. , Section 802.- Amends section 502(a) of the Housing Act of 1949 to permit the Secretary of Ag1ict;lture to accept _a comaker in the case of any applicant for a rural ho11;s~ng loan_under title V ?f such act who is deficient in repayment ability . Prior law perrmtted comakers only in the case of loans made to the elderly. �28 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT S ection 803.-Amends section 504 of the Housing Act of 1949 to increase from $1 000 to $1,500 the maximum amount of a loan, grant, or combined loa~ and grant for repairs and improvements to owneroccupied rural dwellings or farm service buildings which are necessary to make them safe and sanitary. S ections 804 (a) and (b).-Amend section 515 of the Housing Act of 1949 to expand the purposes of _direc t loans t o priv:ate n~nprofit corporations and consumer cooperatives under t h a t sect ion t o mclude rental housing for the low-income rural nonelderly. Under prior law such loans were restricted to housing for the rural elderly of low or moderate income . . S ection 805(a) .-Amends section 515 of t he Housing Act of 1949 to make cooperative housing eligible for direct or insured rural housing loans. Under prior law loans under section 515 could be made toconsumer coopera tives, but only for the purpose of "ren t al" housing. S ect1·on 805(b).-Amends section 515(b) of the Housing Act of 1949 to make insured rural housing loans available for housing for the rural nonelderly who have moderate incomes, as well as for t he rural elderly. S ection 805(c).- Amends section 515(d) (4) of the Housing Act of 1949 to permit fees and charges paid by nonprofit corporations or consumer cooperatives for the services of nonprofit consulting organizations and foundations to be included as p art of the development cost of housing financed with rural housing loans or loan insurance. S ection 806.- Amends section 517(a) of the Housing Act of 1949 to remove the existing $300 million annual ceiling on new loans insured for families with low or moderate incomes and substitute an expiration date of October 1, 1969, thus m aking this insured rural housing loan program consistent with the section 515 insured loan program and with the urban housing programs which also expire on that date. S ections 807 (a)_and (b).- Arnend secti<:> n 501 of th e H ousing Act of 1949 to au thorize the Secretary of Agriculture to extend financial assistance for refin ancing of rural housing and essen tial farm service buildings when the lack of refinancing is likely to result in loss of an applicant's necessary dwelling or essent ial farm service building. TITLE IX- URBAN I N FORMATION AN D SERVICES TECHN ICAL ASSI ST A N CE PURPOSE S ection 901.- Declares that t he purpose of t it le I X is to assist S tates t o make available informa tion and data on urban needs and assistance programs and activities, and to provide technical assistance t o small communities wit h respect t o the solution of urb an problems. GR ANT AUT H ORITY S ection 902 (a) .- Aut h orizes the Se~retary to make grants to States t o help fin ance programs to provide small communities havinop opulations of less t han 100,000 (1) info rmation and data on urba; needs and assistance programs and activities, and (2) technical assistance wit h respect t o t he solution of local problems. S ection 902(b) .- R equires that a program assisted under this section shall (1) specify the activities to b e carried on and justify their �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 29 .. ~ecessity an~ ~C!sts, and (2) represent substantially increased or unproved activities on the p art of the applicant. AMOUNT OF GRA NT Section 903(a) .-Limits the Federal grant for an urban information and t echnical assistance program to 50 percent of its cost. ~ection 903 (b).-Prohibits the m aking of grants under this title to ass1~t ~ assembling da t a, or providing information, t o be used primarily m ~he day -to-day opera tions of State or local governing bodies and agencies. COOPERATION AND COORDINATION Section 904 (a) .- R equires F ederal departments and agencies to cooperate with S tates in providing information t o assist them in carrying ou t urban information and technical assistance programs. S ection 904(b) .- R equires t h e Secretary to seek to insure the great est pr acticable coordination of urb an information and technical assistance programs establish ed under this title. D E F I N ITIO NS . Section 905.-Defines certain terms for purposes of this title, includmg "Stat e, " which is t o mean any State, Puerto Rico, the Virgin Islands, Guam, American Samoa, or an agency or instrumentality designated by the chief executive of any of th e foregoing, or a stat ewide agency or instrumentality of it s political sub divisions designated by the chief executive ; and "sm all communit ies," which is t o m ean communities with a p opulation of less t han 100,000. A P P ROPRIA TIO NS Section 906.-Authorizes grant appropriations of up to $2.5 milli on for fiscal year 1967 and up to $5 million for fiscal year 1968. Appropriations authorized are to rem ain available until expended. T ITLE X - M I SCELLANEOUS HOUSING FOR T H E ELDERLY OR H AN DI CAP PED Section 1001.-Makes a change in the effective date of the 3-_percent ceiling on -the interest rate applica~le to elderly or handi.capped housing loan:,; which was enacted by sect10n 105 of the H ousmg and Urban Development Act of 1965. Under this change, the 3-percent ceiling would apply not only to loans made on or after the date of enactment of the 1965 act but also to loans made befo:i;e · such date if the construction involved was not begun before such date and was not completed prior to application for the benefits of such ceiling. LOW-RENT HO USING IN PRIVAT E ACCOMM ODATIONS-TERM OF L E ASE Section J0G2.-Amends section 23(.d) of the U .S. Housing Act of 1937 to provide that the term of the COJ?tract between the local public housing agency and the o~vne~ of ~ousmg to be used. under t he new program of low-rent bousmg m privat e accommodat10ns enacted in 7!0-742 0-66-----{i �30 DEMON STRATION CITIE S AND METROPOLITAN DEVELOPMENT ACT 1965 m ay be as long as 60 months, r ather th an 36 months as previously provided. APPLICATION OF DAVIS- BACON A CT TO LO W -REN T HOU SING PROJECTS CONS ISTIN G OF P R IVATELY BUILT HOUSIN G S ection 1003 .-Amends section 16(2) of the U .S. H ousing Act of 1937 to require compliance with th e prevailing wage provisions of the D avis-B acon Act in the construction of privately owned structures to be used as low-rent housing ( except under the section 23 program) in cases where an agreement tha t the structure will b e so used is ent ered into by the local agency and the buil_der or sponsor before construc~icin begins. In addition , payment of time and a h alf would be required for work performed in such cases in excess of 8 hours in a d ay or 40 homs in a week. ASSISTANCE FOR HO U SIN G I N A.L ASK.<\ Section 1004.-Authorizes the appropria tion of $10 million for loans and grants to the State of Alaska ( or an agency thereof) to assist in the provision of housing and relat ed facilities, in accordance with a statewide program , for Alaskan natives and other Alask a residents other wise n ot able t o afford such housing. Gr an ts cannot exceed 75 percent of the aggregate cost of the h ousing and r elated facilities to be constructed. Cost of a dwelling unit (including r elated facilities) cannot exceed an average of $7,500 per d welling unit . FNMA P ARTI CIPATION IN F HA-IN S U RED CON STRUCTI ON F I NANCING S ection 1u05 .- Adds to section 305 of th e National Housing Act a new subsection (i), au thorizing the Federal N ational Mortgage Association to par ticipate ( up to 95 per cent) in making FHA-insured advances during construction on a section 21 3 cooper ative housing mor tgage, or a section 221(d)( 3) m ortgage executed by a cooperative (including an inv~ tor-sp onsor), a limited dividend corporation, a nonprofi t corpor ation, or a bmlder-seller mortgagor qualified under section 221( e) . The private mor tgagee (wh o:3e fee would be appr oved by the Secret.ar y as to reasonableness) will d o all the administrative work of ,servicing and processing the advances. FNMA S P ECI AL ASSI S T ANCE FOR F I NANC I NG LOW- COST HOMES Section 1006.-Contains a finding by th e Congress that the sharp decline in new h ome construction over the past year threatens to undercut th ~ present ~ gh leyel of prosperity and employment; that ~he substan tial_~eduction whi~h h as t aken place h~s had its greatest rmpact on families of !fiOdest m c~me wh_o ar~ seeking to achieve the goal of h omeownership ; th at this decline m homebuildino- is due primarily to th e sh ortage of mortgage financing on ter~s which moderate income families can afford; that policy objectives in the field of ~ousin~ and community development are thereby being th·warted. This section st ates fur ther that therefor e the Congress expresses its intent that the special assistance funds made available to the Federal National Mor tgage Association for financing new low-cost homes �. DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 31 (by ;F\i°?lic Law: 89--:-566) should be released immediately t o halt the contmUlll~ decline m the construction of new homes for families of moderate mcome. · F N MA STANDBY COM MITMENTS Se~tiqn 1007.- Am~nds section 304(a) of the National Housing Act to ehmmate the reqmrement tha t FNMA's advance commitments to purch ase mortgages in its secondary m arket operations be issued only at specified prices. PLANNING GRANTS FOR RESEA RCH O N STA TE STATUTES AFFECTIN G LOCAL GOVERNMENTS Secti on 1008.- A mends section 701(b) of the Housing Act of 1954 to permit section 701 planning grant funds to be used, under the demonstra tion program (for which 5 percent of such funds are set aside), for grants to assist in studies and research on needed revisions in -th ose St ate statutes which crea te, govern, or control local governmental opera tions. PUBLIC FACILITY LOANS Section 1009.- A dds to section 202 of the H ousing Amendments of 1955 a new subsection (f) , making section 202 (c) restrictions and limitations inarplicable to assist an ce to municipalities for specific projects for cultura centers. APPLYI NG A D VANCES IN T ECH N OLOGY T O HOUSING A ND URBA N DEVELOPMENT Section 1010(a) .- Authorizes the Secretary ~o encourage and assist the h ousing industry t o reduce the ~ost and rmprove the quality of housing by the application to h ousmg and urba:'1 develop~ent_ of advances in t echnology, and to en courage and assist. t~~ apphcat10n of ad vances in tech nology t o urban development activities. Section 1010(b) .-Sp ecifies that research_ and studies conducted under t his section shall include advan?~s 11: technology relating to (1) design, (2) construction an:d r eh abilitat10n methods, (3) I?,anufacturing pr ocesses, (4) materials and products, and (5) building components. . Section 1010(c) .-Auth orizes the Secret~ry to c~rr y Ol}-t the research and study either d irectly or. by contract with public b odies or agenci~s, or by working agreement with other F ederal departments and agencies. Section 1010(d).-Authorizes $5 I?illion for !iscal 1967 and $10 million for fiscal 1968 to be appropriated for this program, and also authorizes funds appropr~ated to r eµiai~ av_ailable untµ. expended. Section 1010(e).- Provides that n othm g m the sect10n shall limit the Secretary's authori~y under title III of the Housing -".l?t of 1948, section 602 of the Housmg Act of 1956, or any other provision of law. URBAN ENVI RONMENT AL S TUDIES Sections 1011 (a) - (e) .- D irect the Secr.e~ary , in order to improve understanding of the environmental condit10ns necessary for the wellbein~ of an urban society, to carry out a comprehensive program of studies, surveys, research, and analyses (directly , or by 2-year con- �32 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT tracts with public or private bod~es or agencies, or by w orking agreement with other Federal agen cies) to d ocument and define urban environmental factors which must be con tr olled or eliminated, to establish a coordinated system of collecting and r eceiving information and dat a on urb an ecological research and evaluation s, and evaluat~ng, disseminating, and utilizing information and d a ta on urban ecological research . The Secretary is also authorized t o establish a dvisory committ ees to render advice and submit recommenda tions for carrying out the program , and members of such committees may r eceive up to $100 per day when engaged in performing their duties. M ORT GAGE RELIEF FOR CERTA I N HO M EO WN ERS S ection 101 2. -C ontains a series of clarifying amendments t o section 107 of the H ousing and Urb an D evelopmen t Act of 1965, th e provision which authorizes the FHA and the VA to m ak e mortgage payments wher e the m or tgagor is unable t o m ake the p ayments as a result of the closing of a F ederal installation. In a ddition , th e specified period for m aking such payments is extended from 1 to 2 years, or until the mortgagor notifies the FHA or th e VA th at h e is able to resume payments, or until he ceases to be a "distressed m ortgagor ," whichever occurs earliest. ACQU I SITIO N OF CERTAI N PRO P ERTIES SI TUATED AT OR NEAR MILITARY BASE S WHI CH H AV E BEEN ORDER ED TO BE CLOSED S ections 1013 (a)-(j ).--Aut.horize t h e Secretary of Defense (1) to acquire, for 90 percent of its preclosing value, h ousing situated at or near a military b ase or installation which has been ordered to be closed where such housing is owned by a serviceman or other Federal employee wh ose employment or service t h ere will be terminated by such closing, and (2) as an altern ative to make cash payments in amounts equal to the diffe~ence b etween the fair market value or' the housing involv~d at ~h e tune of th e ~ale_01; for~clos~e and 95 percent of its preclosmg farr m arket value, m similar situations (including situations where the housing _h a:" already been sold at_ a loss or taken by foreclosure~. Appropna~ions _for ~r_o perty acq ursition may be made only as specifically auth orized m military construction authorization acts, and _m oneys may b e spent fro~ t 1:e fun~ established to carry out the sect~on only to t h e ~xtent provided m_ appropriation acts. Thi section also repeals section 108 of t h e Housmg and Urban Development Act of 1965 , which it replaces. · COLLEGE H O USING Section 1014(~.):- Amends section ~04(b)(4) of the Housing Act of 1950 to mak e eligible for college housmg loans State authorities established for the purpose of providing housing for students or faculties in private educational institutio~s. Section 1014(b).- Amends section 40l(d) of the Housino- Act of 1950 to permit any portion ?f t h e stat~t~ry am~un~ of annuEJ increase in funds for loans for hospitals ($30 million) which 1s not utilized for loans for this category, to be used for loans for "other educational facilit,ies" under the college housing loan program. �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 33 STUDY CON CERN I NG RELIEF OF HOMEOWNERS IN PROXIMITY TO AIRPORT S Section 1016 .- Extends until 6 months after the enactment of this new act the time allowed the Secretary of Housing and Urban D evelopment for r epor ting the results of his study (provided for in section 1113 of t he Housing and Urban Development Act of 1965) concerning relief of homeowners who reside in t he vicinity of airpor ts. I t also authorizes a ppropriation of $100,000 for t his study. QUARTERS AND FACILITIES FOR FEDERAL HOME LOAN BANKS AND THE F E DER A L H OM E LOAN B A NK BOA RD S ection 1016(a) .-Amends section 12 of the Federal H ome Loan ·Bank Act to permit Federal home loan b anks, wi th the prior approval of the Feder al Home L oan Bank B oard , to purchase or construct appropriate qu ar ters for the conduct of their banking business. Secti011 1016( b).- Amend s section 18 of the act to authorize the Board, utilizing the ser vices of the Gen eral Services Administration to acquire a site in the District of Columbia and construct t hereo~ suitable buildings and facilities for t he B oard and its agencies (including the Feder al Savings and Loan Insurance Corporation). S MALL B USINESS A CT Section 1017. -Amends section 8(b) of the Small Business Act which authorizes SBA t o provide advice and counsel to sm all b usines~ firms, to p ermit members of nonprofit groups which cooperate with SBA to use available office facilities and r ela ted ma terials and services. USE OF CE RTAI N L ANDS F OR CI VIL D EFENSE PURPOSES Section 1018.- Amends section 2 of the act of A ugust 10, 1949, ot provide t h at a portion of t he tract of land conv~:y:ed to the Stat e of Maryland pursuant to th at act ;".l'.l.ay be used for civil de~ense purposes (instead of or in addit ion to N at10nal Guard purposes) without causing the land to revert to th e United States. MORTGAGE Il\SURANCE FOR LAND DEVELOPMENTAMENDMENTS CL ARI FYING Section 1019.-Amends section 1001 (d ) of the National Housing Act to perfect the title X FHA mortgage m surance program for land development by adding clai:ifyi-?,g lan11}1age in~luding ,','steam , gas, and electric lines and installations and m d ustn al uses. MISCELLANEOUS AND TECHNICAL AM E NDMENT S Section 1020 (a) .- Repeais the existing requirement (in section 106(d) of the Housing Act of 1949) t h at contract s under th e u!~an renewal law which exceed $1,000 may be made only a~ter ad vertismg for bids; such contracts would accordm ~ly become subJe~t. to th e general Federal law, which imposes the reqmrement of ad vertismg only where the amount of the contract exceeds _$2,500. · Sections 1020 (b), (c), (d), (e) , (f), and (g).- M~ke amendments which are technical or clencal m nature. (Subsections (e) and (g) �34 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT include amendments reflecting the new title XI of the N ational Housing Act which would be added by title V of the act.) Section 1020(h).-Reenacts and amends section 102(h) of the Housing Amendments of 1955 (which in effect had been repealed by the recent law that established the Department of -Housing and Urban Development) to reenact the directive contained in that provision for the appointment of a Special Assistant for Cooperative Housing. This section of the act adds to the duties of such assistant t he cooperative housing programs under section 221 (d) (3) of t he N ational Housing Act and cooperatives receiving rent supplements under section 101 of the Housing and Urban Development Act of 1965. �LEGISLATIVE HISTORY Four weeks of hearings were held by the Subcommittee on Housing of the House Committee on Banking and Currency on housing and ~ban development legislation including the administration-proposed bills, R .R. 12341 (demonstration cities), H.R. 12946 (Urban Development Act), H.R. 13064 (housing and urban development amendments), H.R. 9256 (group medical practice facilities), and other pending legisla tion. These and other bills were incorporated into R.R. 15890, the Housing and Urban Development Act of 1966 which was repor ted from the full committee on June 28, 1966, Rous~ Report N o. 1699. N o rule was gr anted on this bill and there was no further action on it. Meanwhile, the Subcommittee on Housing of the Senate Committee on Banking and C urrency held hearings on pending legislation April 19-29, 1966. T wo bills were reported by the Senate committee-S. 371 1, the Housing and Urban Development Act of 1966, and S. 3708, the Demonstration Cities and Metr opolitan D evelopment Act. S. 3711 passed the Senate on August 12 by a vote of 61 to 3, and S. 3708 was approved by the Senate on August 19 by a vote of 53 to 22. In the House, both Senate b ills wer e r eferred to the Committee on Banking and Currency which, on SepteJ?lber ~' reporte~ S. 3708 with an amendment in the nature of a substitute rncorpora tmg the major features of R .R . 15890, S. 3708, and S. 3711. A rule was granted on September 21 (H. Res. 1023) . The H ouse version of S. 3708 was considered on the floor of the House on October 13 and 14. A motion to recommit which would have stricken the gr an t money from title I and all of title II was defeated by a vote of 175 to 149. The bill was then approved by a vote of 178 to 14 1. A conferen ce with th e Senate was held on October 17 and 18 and the conference report, House Repor t No. 2301, was approved by the Senate on October 18 and by the House on October 20 by a vo te of 142 to 126. The act was signed into law on November 3 1 1966. 35 �89TH CoNGRF.SS } fd Session HOUSE OF REPRESENTATIVES• { . REPORT No. 2301 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966 OCTOBER Mr. PATMAN, 18, 1966.-0rdered to b e printed from the committee of conference, submitted the following CONFERENCE REPORT [To accompany S. 3708] The committee of conference on the disagreeing votes of the two Houses on the amendment of the House to the bill (S. 3708) to assist comprehensive city demonstrati< n programs for rebuilding slum and blighted areas and for providing the public facilities and services necessary to improve the general welfare of the people who live in those areas, to assist and encourage planned metropolitan development, and for other purposes, ha:ving met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the Senate recede from its disagreement to the amendment of the House and agree to the same w!-th an amendment as follows: In lieu of the matter proposed to be mserted by the House amendment insert the following: That this Act may be cited as the "Demonstration Cities and Metropolitan Development Act of 1966". Note.-The Conference Report was approved by both Houses, transmitted to the President, and signed into law on November 3, 1966. The text can be found on page 43 of this compilation; therefore, only the statement of the managers on the part of the House is included at this point. 37 �38 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT STATEMENT OF THE YIANAGERS ON THE PART OF THE HOUSE . Th e ma mtgers on the par t of th e H ouse a t th e conferen ce on the diSttgreeinO' Yot es of th e two Houses on th e a m endmen t of t he H ouse tu tlte bilC (S. ;nos) to assist compreh ensiY e city d em onstra tion pro!.!rams fo r rebuilding sh un and blight ed areas -a nd for providing th e public fa cilities an~ se~Yices necessa,ry to in:i pnwe th e genernl welfare of th e people who h ve m th ose ureas, lo assist a n_d e nco urage pla nned metropolitan deYelopmen t, ttnd for oth er purposes, s ubmi t th e following sta tement in expla na tion of th e ~ffect of th e a ction agr eed upon by th e conferees and r ecommended 111 t h e accompa nying confer ence report: · · T he House strnck out nil of the Sena t e bill a ft er th e enact ing cla use a nd insert ed a subs tit nte a mendm ent. Th e committee of co nference lrns agreed to 11 subs titu te for bn th th e H ouse am e nd ment itnd th e Senat e bill. Except for tech nical , clnrifying, a nd conform ing eh :rnges, the following sta t emen t expla ins th e differ en ces bet wee n th e Ho use amendm en t and th e s ubstitut e agreed to in co nfer ence. TITLE I- C OMPREHENSIV E C ITY DEMO"!\:' S TRATION PROGRA MS Priori ty of nse of demonstration gran t .fund:, T he H ouse a mendmen t pro ,·ided tha t gra n ts under t he demonstrn tion cities progrnm would he used eith er fo r fed era lly assisted projects or for other proj ec ts under tak en as pa r t of s uch n. program . T he Senitt e bill pro nded t hat- s uch grant s sha ll be used to assist ne,,· proj ects no t- federally ,ts ' i ·ted a nd only if not nec e sary for such proj ects may t hey be used fo r fed erally assis ted projec ts. T h e conference report, con tain th e Senate la nguage. T I'l' L E I I- PL ANN ED MET R O P OLITAN DEVELOPMENT A1etropolitan expediter The Senate bill con tained a provision not included in the House a mendm ent aut horizing ~he appoint m ent of a metropolitan expediter upon r eq uest of local officials a nd a fter consultation wit h local officials. The co nference r eport co n tain t h e Senate language with a modification r equiring t hat the centr al city in any metropolitan area m ust requ est. the 1\ppointm ent of such an official. The conferees wish to emphasize that this expediter is intended to be the servant of t he ci_t i~ in_the m et~·opolitan area, and _his functions are limited to prov1dmg mform at1on, data, a nd assistance to local authorities and private individuals a nd entities in the a r ea. �DEMON STRATION CITIES AND M ETROPOLITAN DEVELOPMENT ACT 39 TITLE III-FHA INSU R A N C E OPERATIONS Cooperative hou.._<?ing The H ouse amendment contained provisions increasing each of the per family unit limit a tions under FHA section 213, cooperative housing program by $2,500 and authorizing additional exterior land improvement to be financed under tha t program. The Senate bill contained neit h er provision and none is contained.in the conference repor t. E ligibility f or occupancy f or section 221 (d) (3) below-market-interest-rate housing The ~ouse amendmen t contained _a provision prohib~ting occupancy of sect10n 22l(d)(3) below-mark et-mterest-rate h ousmg by families wi th an ann ual income of $ 10,000 or m or e. The Senate bill contained no such pr ovision and none is con tained in the conference report. The conferees, h owever, wish to emphasize tha t they expect the Secretary of Housing and Urban D evelopment to limit this program to families of greatest need. . T h ~ confer ees recognize, of course, that higher ceilings are necessary m high-cost areas and for large families. A rmed services housing mortgage insurance program The House amendment contained a provision which would have reactivated the Capehart FHA insurance program for the armed services. There was no such pr ovisio11 in the Senate bill and none is contained in the conference report. FHA section 810 program The House amendment contained a provisi~n increasing from 5,000 to 10,000 the maximum number of umts which may be covered by mortgages insured under FHA's program for off-base rental housing for the military. The House amendmen~ would also have permitted additional types of mortgagor s under t_h is program. T here wer e no comparable provisions in the Senate bill and none are con tained in the conference report. TITLE IV-LA ND DEVELOPMENT AND NEW . COMMUNITIES The House amendment contained a pro_vis10n not 1ncluded in the Senate bill increasing the maximum mortgage from $10 million to $25 million which FHA ca~ insure for land _d ~velopment and authorizing this assistance for ent1re . ~ew c<;mmuruties. The conferel'!-ce repor t contains the House p rovis10n with t hree amendments which would terminate this authority on October 1, 1972 ; would require approval of any new community by the local governing body and by t he Governor of the State (except in "home rule" cases); and would limit the total amount of insurance which c.an be outstanding under this pr ovision at any one time to $250 million. TITLE V- MORTGAGE INSURANCE FOR FACILITIES GROUP MEDICAL PRACTI CE The House amendment contained a provision authorizing FHA mortgage insurance for ~oup J?r!},ctice _medical facilities. The . c~mference report retains this proVIs10n, with an amendment proVIdmg �40 DEMONSTRATION CITIES AND METROPOLITAN DE VELOPMENT ACT that, while b oth profitm aking and n onprofi t grn ups may p a rticipate in the program , the act u al m o!·tgagor under t he n ew pr ogram must b e a pri vate nonprofi t corp or at10n. Tl'l'LE V I -PRESERV ATIO OF HI S TO RIC STRUCTURE S ·Loans f or acq ui~it'ion and rehabilitation of historic .~ tri1ctare.~ The H ouse amendmen t con tn,ined a provision aut h orizin~ t he u se of belo\\·-market. in t.er est r ate_ loans under ,;ectio n :n~ uf the H ousin g Act. of 1964 for historic preservittion purp u::;e,; . There \rns 11 0 ,m elt pro \'1s10n m th e Se1rnte bill and n on e is con tained in t he co nfer ence rep ort. TITLE VII- URBAN R E :\TEW AL Local grants-in-aid The H ou ·e tim endmen t co n tained a provision a u th orizing t he Secr elu.r y to co un t as local cr edit for urban rene\\·al purp oses 25 p ercen t of the cost of public facilit ie::; for cult ural, exhibi tion, ci vic, or m unicipal purposes subj ect t u cer tttin ot her r equiremen ts . The confe r en ce r epur L retains t,his proYision with t \\·o a m endme n b . First, t he ,,·ord " municip al" is strick en an<l the pl1ntse "c ity h,111 ul' public safety building" is i11 ::;er ted , and second , certain m edical facilili e,; and mentttl henlth facili ties could be included. Such cr edit \\·ould be limi ted t o 25 per cent of the cost of such facility or $3 .5 million , ,\·hic heve r is less. The confer ees ,Yish to em phasize t hat t his pro vision is n ot in tended as ,1, " blank check " for t.he inclusiou of such p rojects for urb an r en e,\·al cr edit purposes · and th e prov ision i11cludes t he r equirem en t t hat a ny such local proj ect must "con tribut e m aterially to the objectives of t he urban r ene,\·al plan or plans for su ch project or projects." The conferees furlher ·e xpect the D epartmen t of Hou sing a nd Urba n Development t o r ep or t back to the Co ngr ess by J anu ar y of 1967 on the p oten tial cost of section 701 of t his act, togeth er " ·i th recommendations for ch anges in existing la" · t1ffecting local gr ants-in -aid. Application of prevailing wage requirements to miiltifamily housing in urban renewal areas Th e H ouse am endm en t contained a pr ovision which would have applied th e D avis-Baco n Act prevailin g wage r equirement 1.o conven tionally fin anced mt ltifamily h ousing b uilt in urban renewal ureas. Th er e " ·as no s uch J?r ovision in th e Sen ate bill and n on e is contained in the conferen ce r ep ort . Grant-in-aid credit 1.inder section 11 2 of the Housing Act of 1941 The H ouse am en dm en t con tained a provision definino- the term " in th e vicinity" as used in connection " ·ith local cr edit; under ur b an r enewal f?r certain exp e~d~tures by universi ties an d hospital to mean 1 mile and fur th er g1vm g th e Secr etary d iscr etion to r ecoo-nize e>..1>endit ures b eyond t h e 1-mile limit wh ere h e felt the facts ju t ified it . The conference r ep or t con tains th e 1-m ile provision but does not contain th e discr etion ary au t h ority b eyon d 1 mile. S ewer ,9y st em .~ in llrban renewal a,reas Tho House am ndm nL eont11in d n, pro ision which would have r equired urban r e_n ewal ar eas to be ser ved by s torm se" ·er sy s tems separate from sa01LM"y sewer sys Lems. There was no such provi. ion �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 41 ~n the Senate bill. _The con feren ce r~p ort contains a provision requirmg that to the m axunum extent feasible urban renewal areas must be served by effective sys tems for the treatment of storm and sanitary wastes. TITLE I X - ·· URB A K I NF ORM ATIO N AND TE CHNI CA L ASSISTANCE SERVICES The Senat,e bill con tained a provision authorizing matching gran ts (lim ited to appropriations of $5 million for fiscal year 1967 and $10 million for fiscal 1968) to States a nd met-ropoli tan area agencies for the establishment of urban infnrmation a nd technical assistance centers. The conference report contains a_ pro vi~foo authorizing matching 1<runts through t hf:: St.ates for tecl:rucal assistan ce_ fo! communities up t,o 100, 000 populatwn, a nd a uthorizes the appropnat10n of $2.5 million in fiscal 1967 and $5 million for fiscal 1968 for this purpose. 'l'ITLE X-MISCELLANEOUS Low-r-ent lw using in private accommodations The H ouse a mendment contained a provision extending the maximum term of lease from 36 months to 60 mon ths for private accommodations to be used as public h 0using but restricted the lon"'er term to housing needed for displace? families. The conference r:port retain ed the increase in the maximum term to 60 months but does not restrir:t i t to housing for d isplaced families . Open-space grants for development of existing open-space land The House amendment ha d a provision authorizing "'rants under the open space program for the develop mei: ~ of I_an d already owned by a municipality. There was no such provision m the Senate bill and none is contained in the conference report. Acquisition nf property in areas a.ffected _by the closing of military bases The House amendment had a provision authorizing the Secretary of Defense to acquire the homes of property owners in areas affected by the closing of military bases or to make certain payments where . the property had already been sold by the owner or t he _owner h ad lost it throu"'h foreclosure. The conference report con tarns the House amendm0eot with perfecting modifications. Leasing of housing for bachelor military personnel The House amendment contained a provision authorizing the Secretary of Defense to lease for periods of up to 15 years appropriate housing for use as bacheloi: officer q uart~rs. Th_ere w:as no comparable provision in the Senate bill and none 1s contamed m the conference report. Hydrology research , The House amendment contained a. provision a uthorizing HUD to conduct studies and research concermng urban hydrology. There was no comparable provision in the Senate bill and none is contained in the conference report. �42 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT Studies of State laws ajfecting cities The House amendmen t contained a prov1s1on a u t horizing t he limited use of urban planning gran t funds for studies of State laws affecting municipali ties. This is retained in t he conference r epor t bu t the conferees wish to m ake clear th at i t is n o t in tended t hat t hese funds be used in any way for lobbying Stat e legi latures . r:ertain items n ot included in the conference report The Senate conferees str ongly urged t b e adop tion of fixe provisions anproved by the Sena te. 'Fhese \\·ere: FHA m or tgage insuran ce for sensonal hom es, fellowships fo r grad11 ate training in his toric preserY atio11 , clarificntion of existing a u thority fo r th e leasing of pri vatelv b nil t housing for use as public housing, a u t hori ty for F NMA t o pL(i'ch ase mor tgages insured or guaranteed prior t o ~ ug ust 2 , 1954 , an d a provision to conform to n om enclature used m Ya ri ous housincr la ,,·s to refl ect t he crea tion of th e D epartmen t of Ho using a n d U r b;n D ernloprn ent. While the H ouse co nferees were impressed wit h t he m eri t:; of these proYisions , it \\·as felt that they could not b e accep ted ttt t his tim e, bu t there ,ms agreem en t th at th e H ouse Comm it t ee on Bankincr

tnd Currency would take promp t nction on th em eurly n ext year. "

WRIG H T P AT MAN , A BRA H AM J. 1\1uLT ER "\VM . A. B A RRETT ' L EoNo R SuLLIVA~, H EN RY S . RE USS THOJ\[AS L. ASHL~Y W I LLl A lV! B. WID NA~L i\.1.anagers on the Part of the H ouse . �[Public Law 89- 7 54, 89th Cong ., S. 3708 , N ov. 3, 1966] To a ssis t COlllJJreh ensi ve city d em on s tra tion p r ograms fo r r e build ing slum a nti bligh ted u reas ancl for providing the p u ulic fa cilities a nti services necessar y t o improve t he gen eral w elfa r e of t he p eople wh o Iil·e in those a1·eas, to assis t a nd encourage p lann ed m e tr op olitan d evelopm t'n t , a nd fo r other pu r1loses. B e it enacted by the S enate and H ouse of R ep1·esentative.y- of the United States of Ame1°ica in 0011.q ress assem bled, That this Act may be ·cited as the "Demonstration Cit ies and Metropolitan Development A ct of 1966". T ITLE I - COMPREHENSIVE CITY DEMONSTRATION PROGRAMS F I NDINGS AND D E CL ARATION OF P URl'OSE SEC. 1_01. The Con~res~ h ereby find~ ~nd decla re:3 that imprnvi11g the qua lity of u rban li fe is th~ most cntic_,i_l domestic problem facing the United Sta tes. The persistence of wiclesl?read urban slums and bl ight, t he concentra t ion of persons_C?f low mc?me in older urban -~re'.1.~,. and the un1:1et nee_d~ fo r adcht101~a l housmg and community fac1htres and services a n smg from r apid expa1Ls10n of our urban popul a t_ion have resulted i~ a m~rked deteriorat_ion in the quality of the env1ronment and the lives of large numbers of our people while n 1e N a t ion as a whole prospers. The Congress fu r ther fi nds and declares that cities, of all sizes do 1wt have_ adequate reso urces to den,] effect i_rnly wi~h the ~r.i tical p;·oblems facmg them, and that F ederal as 1. hrnce m add1t10n to that now authorized by the ur ban renewal p1·og r an1 and other existin oFederal gnrnt-in-aid p r og rams is e~sen tia l to e(mble c~ties to pJai~ develop , a nd conduct p rog rams to 1mproi:e thei r w1ys1cal environmentJ rn crease their suppl:y of adequ3:te housmg for: low- and moderateincome people, and provide educat10nal and socml services vital t o health a nd welfare. . T he purposes of this t itle ar ~ ~o provide :tddi ti01~al fin~ncial and tech nical assistan ce to enable cities of al} :51ze;; ( with e(_(ual regar cl to the problems of sm all as ,Yell as large ctttes) f·o pln_n, d~Yelop, and carry out locally p r epare1 ~nd scheduled C?mpr_e her:is1ve city demoJI strat ion programs co11ta mmg new a!1d 1mag 111ative prop osals to rebu il<l or revitalize large slu n:i _and blig h ted areas; to expand housing, j ob, and ~ncome opportu!11ties ; t<? !e:ciuce dependence on welfare payments; _to_improve educa t wn al fac il_1t1~s and p rogr~ms ; to com~n,t d isease and 11) hea lth; to r educe the rncidence of crime and delrn quency; to enhance recreatioiml and c~d tm al opportunities ; ~o establi sh better access between ho1ues an d JOb~; and generally to improve Jiving conditi~n s·tor the people " ·ho ltve rn Sl!,ch areas, and t<_> accomplish these obJectn-es_thr?ug h the most effective and economical concentration and coor di nation of Fede_ral, S tate, and_ local public and p rivate efforts to improve the quality of urban li fe. BASI C AUTHORI T Y SEC. 102. T he Secretary of ,¥ousing ~,nd _ U rban _Development (hereinafter referred to ~s the . Secretary ) 1s . authorized to make grants and provide tec~uncal as~1stance, as p ro1:1ded ~y this title, to enable city demonstration agencies (as d~fine~ m sect10n 112 (2) ) to plan, develop, and carry out comprehensive c!ty _demonstration programs in accordance w1th the p urposes of this t itle. 43 �44 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT ELIGIBILITY FOR ASSISTANCE SEc. 103. (a) A _ comprehen~ive ci!y demonstra~ion program is eligible for assistance under_sections lOD ~nd 107 only i f - . (1) physical and social problems m the area of the city covered by the program are such that a comprehensive city demonstration program is necessary to carry out the policy of -the Congress as expressed in section 101; . _ . (2) the program is o! sufficient i:nagmtude to make a substantial impact on the physical and social l?roblems and to remove or arrest blight and decay in entire sect10ns or neighborhoods; to contribute to the sound development of the entire city; to make marked progress in reducing social and educational disadvantages, ill health, underemployment, and enforced idleness; and to provide educational, health, and social services necessary to serv~ ~he J?00r_ and disadvantaged~ the area, widesp~·ead citizen part1c1pat10n m the program, maximum opportumties for employing residents of the area in all phases of t he prog r am, and enlarged opportunities for work and training; (3) the program, including rebuilding or restoration, will contribute to a well-balanced city with a substantial incr ease in the supply of standard housing of low and moder ate cost, maximum opportunities in the choice of housing accommodat ions for all c1t1zens of all income levels, adequate public fa cilities (including those needed for education, health and social ser vices, transportation, and recreation) ; commercial facilities adequ ate to ser ve t h e residential areas, and ease of access between the residential areas and centers of employment; ( 4) the various proj ects and activities to be undertaken in connection with such prog r ams are scheduled to be initiated within a reasonably short period of time; adequate local r esources are, or will be, available f~r the completion of the program as scheduled, and, in the carrymg out of the program, the fullest utiliza tion possible will be made of private initiative and enterprise; administrative machinery is ava ilable at. the local level for carrying out the program on a consolidated and coordina.ted basis; substantive local laws, r eg1;1l at ions,. and other_requirements are, or can be expected to be, consistent with th e ob1ect1ves of t h e program; there exists a relocation plan meeting the requirements of the regulations referred to in section 107; the local governing body h as ap]?roved t he program and, where appropriate, applications fo r assist ance under the program; agencies whose cooperation is necessary to the success of the program h ave indicated their intent to furnish such cooperation ; the program is con sistent with comprehensive !)lanning for the entire urban or metropolitan area; and the locality will maintain, dur ing the period an ap]?roved compreh ensive city demonstration program is being earned out a level of aggregate expenditures for activities similar to tho~e being assisted under this title "-·h i ch is not less than the level of ao-o-regat e expenditures for such activities prior to initiation of the ~~mprehensive city demonstr ation program; and ( 5) the program meets such additional requirements as the Secretary may establish to carry out the purposes of this title: Provuied, That the authority of the ~eci:etary unde1; this paragraph shall not be us~d to impose cnteria or ~stablish requirements except those whi ch are related and essential to the specific provisions of this title. �DEM ONSTRATION CITIES AND METROPOLIT AN DEVELOPMENT ACT 45 (b) In implementing this title th e Secreta ry shall(1 ~ emphasize _local initiative in _the _planning, development, and implementat10n of comprehensive city demonstration programs ; (2) insure, in con junction with other appropriate F ederal dep artmen ts and ag encies and at t he direction of the President m aximuni coordina tion of F ederal assistance provided in con: nect~on with t_hi_s. titl_e, prompt ~esponse _to local _initiative, and m axrmum flexibility rn pr.og r amrng , consistent with the requirements of law and sound administrative practice ; ai1d (3 ) en courage city demonstration agencies to (A) enhance n eig hbor hoods by applying a high standard of design, (B ) maintain, as appropriate, n atu ral and historic sites and distinctive neighborhood ch aracteristics, and (C) make maximum ;possible use of _new and _imp roved technology and design, includrng cost r educt10n techmques. ( c) The preparation of demonstration city programs should include to the maximum extent feasible (1) the performance of an alyses that provide explicit and systematic compa.r isons of the costs and ·benefits, finan cial and other wise, of alternative possible actions or -courses of action designed to fulfill_ur ban needs ; and (2) the establishmen t of programing systems designed to assure effective use of such an alyses by city demonstration agencies an d by other government bodies. ( d) N othing in th is section shall au thorize the Secretary to require ( or condition the ava ilability or a mount of financial assistance authorized to be provided under this title upon) the adoption by any community of a p rogram (1) by which pupils now resident in a school district not wit hin the confines of the area covered by the city demonstration program shall be transfer red to a sc~ool or school district includin o- alJ or part of such area, or (2) by which pupils now resident in a schtol dist r ict within the confines of the area covered by t he city uemonstr ation program shall be transferred to a school or school district not includ ing a par t of such area . . FINANCI AL ASSI ST ANCE F OR PLANNING COMPREHENSIVE CITY DEMONS'I1?ATION PROGRAMS SEC. 101. (a) The Secretary i~ a uthori~ed to make grants to, and to contract with, city demonstra tH?n agencies to P!_l,Y 80_per centum of the cost of planning and developmg comprehensive city demonstration J?rograms. . . . . . (b ) Financial assist an ce w1ll _be pr ovided under th1s sect10n only if ( 1) the application for :iuch assistance has been approved by the local governing body of t!:e_city, _and (2) ~he Secretary has _determin~d that. there exist (A) admm1str at1ve mach illery through which coordination of all related planning activities of l<?cal agencie~ can be achieved and (B) evidence that necessary cooperat10n of agencies engaged in refated local p lanning can be obtamed. .. FINA N CI AL ASSISTANCE FOR APPROVED COMPREHENSIVE CITY DEMONSTRATION PROGRA MS SEc.105. (a) The Secretary ~s authorize~ to ap pr ove comprehensive city demonstration progi:ams 1£, a~r _review of the plans, he determines th at such plans satisfy the cnter1a for such programs set forth in section 103. �46 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT (b) The Secretary _is author~zed to make grants to, and to contract with, city demonstration agencies to _pay _80 per centum _of the cost of administering approved comprehensive city demonstration programs, but not the cost of administering any project or activity assisted under a Fedeml grant-in-ai? program. . . . . . ( c) To assist the city to carry ~:mt f~ie proJects or a~tiv1ties mcluded within an approved comprehensive city demonstration program, the Secretary is authorized to make grants to the city demonstration ao-ency of not to exceed 80 per centum of the aggregate amount of n~n-Federal contributions otherwise required to be ma de to all projects or activities assisted by Federal grant-in-aid programs ( as defined in section 112(1)) which are carried out in connection with such demonstration program: Provided, That no Feder al g rant-inaid program shall be considered to be carried out in connection with such demonstration progr am unless it is closely r elated to the phy sical and social problems irr the area of the city covered by the program and unless it can r easonably be expected to h ave a noticeable effect upon such problems. The specifi_c am~unt of any such. grant sh:1ll take into account the number and mtensity of the economic and social pressu~·es in the s~ctions or neighb_orhoods_ involved , such as those involvmg or resultmg from population density, poverty levels, unemployment r ate, public ,rnlfare participation, educational levels, h ealth and disease char acteristi cs, crime and delinquency r ate, and deg ree of substandard and dil apidated h ousing. The amoun t of non-Feder al contribut ion required for each proj ect in a F eder al e;r an t -in-aid p rogram shall be cer tified to the Secretar y by the F ederal dep ar tment or agency (oth er th an the Department of H ousing and U rban Development ) administeril1g such program, and th e Secr etary sh all accep t such certificat ion in computing the grants h er eun der. ( d) Gran t funds provided to assist projects an d activities included withm an appr<?ved comprel:iensiv~ city demonstration _program p ~rsuant to subsection ( c) of th is- section sh all be made available to assist new and additional projects and activit ies not assisted under a Federal g rant-m -aid prog ram. To the exten t such funds are not necessary to support fully such ne_w and addition al projects and activities, th ey may be used and credited as p art or all of the required non-Federal contribution to projects or activities, assisted under a Federal o-rantin-aid program, which ar e_p ar t of an appr oved comprehensiv~ city demonstrat ion program. Such g ra nt funds, h owever, shall not be used(1) for the general administration of local governments · or (~) to repla?e.no1:-Feder al ~ontributions in any federally aided proJ ect or ~ctivity m clu?ed ~ an appr~ved compreh ensive cit.y de~onstr ation progr~m, if prior to the fihn o- of an application for as_sistance under section 104 ~n agreement has been entered into with any Feder al agency obh~atm g such non-Federal contribu tions with r espect to such proJ ect or activity. TECHNICAL ASSI STANCE SEc. 106. '.J'he Secretary is authorize~ to ~ndertake such activities as h e determmes to be desirable to ~rovide,_ either directly or by con- . tr acts or o~her arrar:gements, techr:ical. assistan?e to city demonstrat10n . agenc~es to assist su<?h agencies m plan_nmg, developing, and admm1stermg comprehensive city demonstr ation programs. �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 47 RELOCATION REQUIREMENTS AND PAYMENTS . SEC. 107. (a) A comprehensive city demonstration program shall mclude a plan for the relocation of individuals, families business concerns, and nonprofit organizations displaced or to be di~placed in the carrying out of such program. The relocation plan shall be consistent w~t~ regulations prescrib~d by the _Secretary to assure that -( 1) the provis10ns and p rocedures mcluded m the plan meet relocat ion stand~rds equivalent to . those prescribed under section 1?5 ( c) of the Housmg Act of 1949 with respect to ur~an r ei:e'_V~l pro1ects assisted under title I of that Act, and (2) relocation activities are coordinated to the maximum extent feasible with the increase in the supply of decent, safe, and sanitary housing for families and individuals of low or moderate income, as provided under the comprehensive city demonstration program, or otherwise, in order to best maintain the available supply of housing for all such families and individuals throu<Yhoot ilie ci~. b ( b) ( 1) To t he extent not otherwise aut~orized under any Federal law, financial assistance extended to a city demonstration agency under section 105 shall include grants to cover the full cost of relocation pay ments, as herein defined. Such grants shall be in addition to other .financial assistance ext ended to such agency under section 105. (2) The term "relocation payments" means payments by a city demonstration ag"ency to a displaced individual, family, business concern, or nonprofit organization which are made on such terms and conditions and subject to such limitations ( to the extent applicable but n ot including the date of displacement ) as are provided for reloca~ tion payments, at the time such p aymen ts are approved, by section 114 (b), (c), ( d ), and (e ) of the Housing Act of 1949 with respect to p rojects assisted under title I thereof. . . ~ (c) S u bsection (b) sh all not be applicable with r espect to any displacemen t occurring prior to the date of t he enactment of this A ct. CONTINUED AVAI LABILITY OF FEDE RAL GRANT- IN-AID PROGRAM F U NDS SEC. 108. Notwit hstanding any ot her provision of la.w, unless hereafter enacted expr essly in limitation of th E: p r<;>visions of this secllion, funds appr opriated for a F ed_ei:a! g r an_t-m -aid program which are reser ved for any projects oi: activities ::i,ss1st~d under such grant-in -aid program and undertake1: 111 connect10n with an ~pprov_ed comprehensive city demonstration p r ogram sh all r emam ava:ilable until expended . CONSULT ATION SEC. 109. In carrying ou t t he p rovisions of this tipe, including the issuance of regulations, t he Secr etary shall consult wit h other F ederal departments and a<Yencies administ ering Federal g r ant-in-aid programs The Secret~ry shall consult with each F ederal depart ment and agency a ffected by_each comprE:hensive city demonstr ation pro<Yram before entering mto a comm1tmen t to make g rants for such program under section 105. L ABOR STANDARDS SEC. 110. (a) All laborers and m~chanics eJ?-plo;red by contractors or subcontractors in . the .con struction, rehabihtat10n, alteration, mrepair of projects wh1ch. . . . (1) are federally assisted m whole or m part under this title and �48 DE MONSTRATION CIT IES AND METROPOLIT AN DE VELOPMEN T ACT (2) ar e not other wise subject to s~ction 212 of th ~ Nation al, H ousing Act, section 16 (2) of the U m ted States Housm g Act of 1937 section 109 of the Housing Act of 1949, or any other p rovision of F eder al law imp osing l abor stan dards on federally assisted' const ruction , sli:ill be pa id wn.ges at n~tes not less t ~an those p r evai ling on sim ilar constrrn:tion in the locality as determm ed by the Secr etary of Labor in accor dance with the D av is-Bacon Act, as a men ded (40 U .S .C. 276a- 276a-5) : P 1·ovuled, That this section shall ap p ly to t he con struct ion rehabilitation , alter ation , or rep air of r esidential p r operty only if s~ch r esicll:n_tin 1 prop~rty i~ desig ned fo r r esidentia1 use for ei,rht or more fam ilies. No fin ancial assistance sh all be extended t o ar~y such projects unless adequate assurance is fi rst obtained that th ese labor standar ds will be maintained upon the construct ion work. (b) T he Sec_ret ar:y of L abo~· sh all have, " -ith r e:3pect to the l~bor standards specified m subsectron · (a) , th e authon ty and fm1ct1ons set fo r th in Reorganization Plan Numbered 14 of 1950 (15 F .R. 3176; 6-1: Stat. 1267 ; 5 FS.C. 133z- 15), and section 2 of t he A ct of ,Tune 13, 1934, as amended ( 48 Stat. 948; 40 U.S.C. 276c), and the Cont ract , Vork Hours Standar ds Act (76 S tat. 357) . APPROPRIATIONS SEc. 111. (a) T here a re authorized to be appr opria ted , for the purpose of financial assistance and administr at ive expenses under sections 104 and 106, not to exceed $12,000,000 for th e fiscal year ending June 30, 1967, and not to exceed $12,000,000 for t he fiscal year ending June 30, 1968. (b ) There are aut horized to be approprir.ted , for t he p urpose of financial assistance and administr ative expenses under sections 105, 106, and 107, not to exceed $400,000,000 for th e fiscal year ending .Tune 30, 1968, and not to exceed $500,000,000 fo r the fiscal year ending J une 30, 1969. ( c) A ppropriations authorized under this section slrn,ll remain available until e pended. DEFINITIONS SEc. 112. As used in th is title( 1) _" Fede_ral g rant-in-aid prog ram" means a program of Federal financial assistance ot her th an loans and other th a n the assistan ce provided by this title. (2 ) C i_ty deri1onstrati01_1 agen cy·' m~ans the city, the county, or any local publi c ag-e!1cy established or des~gi:ra ted by th e local goYeming body of su~h city or county to admm1 ster the compreh ensive city demonstratwn prog rarn . (:3) .G_ity" means nny muni cipal ity (or t":o or more municipalities act mg Jointly ) or a.ny county or oth er p ublic body ( or two or more acting jointly) h aving general governmental powers. (4) "LocaF agencies include S ta te agencies an d instiumental ities providi11g _ser vices or r e. o~rces to a.. city or lo_cality, and " local" resources 11~clude those p rovided to a city or locality by a State or its agency or rnst rumental ,ty. GRA N T AU THOHlTY F OR 1.nrn. N l !ENl ;;W ,\ J, 1>ROJECTS W HI IT ARE P ,\ RT OF APPROVRD CO:VfPHE l-rnNSI VE C'JTY DF.MONSTR.\ TION PROGRAMS SEc. 113. Section 103-(b) of the Housin <T Act of 1949 is amended by inserting afte r the first sentence the following new sentence : "In addition to the authority to make grants provi ded in th e first sentence of t his subsecti on, the Secretar y may contra.ct to m ake grants 11nder �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 49 this title, on or after JuJy 1, 1967, in an amount not to exceed $250 000,0!)0: P rovuled, That the authority to contract to make grants provided by this s~ntence _sha}l _be e~ercised only with respect to an urban renewal proJ ect which is identified and scheduled to be carried out as one of the projects or activities included within an approved comprehensive city demonstration program assisted under the provisi_ons of section 105 ( c) of the Dem_onst:cation Cities and Metropolitan Development A ct of 1966." STATE LIMIT SEC. 114. Grants made under section 105 for projects in any one S t ate shall not exceed in the aggregate 15 per ceptum of the aggregate amount of funds authorized to _be a.p propriated under section 111. T ITLE II-PLA NNED METROPOLITAN DEVELOPMENT F INDINGS AND DECL ARATION OF P URPOSE SEc. 201. (a ) The Cong ress hereby finds that the welfare of the Nation an d of its peopl e is directly dependen t upon the sound and orderly development and the effective organiza tion and fun ctioning of the metropolitan a reas in which two-thirds of its people live m1d work. It fu rther fin ds th at the cont inuing rapid growth of these areas makes it essen tial th at they prepare, keep current, and carry out comprehensive p lans and p rograms for their ~rderJy physical dernlopment with a view to meeting efficiently all their economic and social needs. It fu rther finds that metropolitan areas are esp eciall y handicapped in this t ask by the complex1ty and scope of governmental ser vices required in such rapidly growing areas, the. multiplicity of political jurisdictions and agencies invol ved , and t he m~dequacy of the operational and administrative arrangements ava1l abl ~ fo r roop ern-tion amon~ them. . . ·rt fnrther finds that pre~ent r~qu1ren~ents for a reawide pl anni ng and programing in connect10n_ with va ri ous J!edend p rograms have materially assisted in the solution of metropoli tan p_r?blems, bu t that greater coordinat!on of Federal programs and add1t10n-a) p ar:tic ipation and cooperat10n are needed from the States and loca11ties rn perfecting and carrying out sue~ e!for ts. . (b) It is the purpose of tlus t itle to provide, through greater coordination of Federal programs and through supplementary grants for certain federally assisted development _p~ojects, ad~i tional encoura~ement and assistance to States and localities for makmg comprehensive metropolitru1 planning and programiug effective. COOPER ATION BETWE'EN FEDERAL AGENCIBS SEC. 202. In order to insure tha_t all F~de~~l programs related to metropolitan development are carr ied out m a coordmated manner( 1) the Sec.retary is auth<_>ri;Zed t o call upon other Federal agencies to supply such statistical data, program reports, and other materials as he _deems necessary to discharg~ his responsibilities for metr~pohtan developll'1:ent, and to assist the P resident, in coordinatmg the metropolitan development efforts of all Federal agencies; and . (2) all Federal agencies w~ich are engaged in administering programs related t~ metropo!1tan development, or which <;>therwise perform £unctions relat~ng thereto, shall 1 to the maximum extent practicable, consult with and seek advice from all other �50 DEMONST RATION CIT IES AN D MET ROPOLITAN DE VELOPMENT ACT significantly affected Federal departments and agencies in an effort to assure fully coordinated programs.

METROPOLITA N E :l,..'PEDITER S

SEC. 203. U pon the r equest o~ th e duly auth orized local ofl'.icials_ of the centr al city in any metropolitan ar ea, a nd after consultat10n ~ th local O'Overnmental authorities throughout the metropolitan a r ea with respe~t to whether or not the Secretar y should make an appointment under this section (and with respect to ~he individuals _who migh~ be so appointed), the Secr et ary may appomt a metropolitan exp editer for such area whenever he finds a need for t he ser vices specified in this section. The metropolitan ex_p~iter sha!J. p r o:vid~ ~formation, ~a~, and assistance to local authorities and private individuals and entities within the metropolitan area, and to all relevant Feder al dep artments and agencies, with respect t o all programs and activit ies co~ducted within such metropolitan area by the Department of Housmg an d U rban Developmen t, and with respect to other p ublic and pritate activit ies and needs within such metropolitan ar ea which relate to the programs and activit ies of the Depar tmen t. COORDI N ATION OF FEDERAL AIDS I N METROPOLI TAN AREAS SEc. 204. (a ) A ll applications made after J une 30, 1967, for Federal loans or gr ants t o assist in carrying out op en-sp ace land p r ojects or for the pl anning or construction of hosp itals, airports, libraries, water supply and distribution facilit ies, sewerage facilities and waste treatment works, highways, transportat ion faci lit ies, and water development and land con ser vation p r ojects within any metropolitan a rea »hall be submitted for r eview( 1) to any ar eaw ide a<Yency whi ch is design ated to p erform metropolitan or region al pl anning for t he a rea within which the assistance is to be used , an d which is, to the greatest pFacticable extent, composed of or responsible to the elected officials of a unit of tireawide governmen t or of the units of general local <Yovernment within whose jur isd iction such agency is auth o1:rzed to e1wage in such p lanni ng , an d (2 ) if made by a special pu r pose unit of local <YOvernment to the unit or uni ts of genei·al local government with a uthority to operate in the area within wh ich the proj ect is to be located . (b ) (1) Except as provided in parao-raph (2) of this subsect ion, each applicat ion shall be accompanied (A ) by the comments and recommendatious witl~ respe~t to the pr~ject involved by the ar eawide agency and governmg bod ies of the umts of gener al local o-overnment !o which the applicat1~m h as been submitted for r ev iew, a.i d (B ) by a statement by the appli cant that such comments an d recomrnsndations h,ave been considered rri or to tor mal ~bmission of th e application. S uch comm ents sh all mclude m fo rmat10n concernin o- the extent to whi ch th~ project is consisten t with comprehen ive planning developed or m the process of development for the metropolitan area or the un_it of gener al_local gov~rnment, as the case may b~, an d the extent to whi ch such proJ ect contnbutes to the fulfillment of such p lannin g. T he comments and r ecommendations and the statement referred to in this p ara~raph shall, except in the case r eferred to in paraO'raph (2) of th is su bsection , be r eviewed by the agency of the Federltl Governme~1t _to ~ h i_ch such aprli cation is submitted _for th e sole purpose of ass ist.m g 1t 111 determmmg wh ether the application is in accordance with the provisions of Feder al law which govern t he making of the Joans or g rants. �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 51 (2) An application for a Federal loan or grant need not be accompanied by the comments and recommendat10ns and the statements r~ferred to in p aragraph (1) _of this subsec~ion, if th_e applicant certifies that a plan or descnpt10n of the proJect, meetmg the requirements of such rules and regulations as may be prescribed under subsection ( c) , or such application, has lain befoi:e an appropriate area. wide agency or inst rumentality or unit of general local government for a period of sixty days without comments or recommendations thereon being made by such agency or instrnmentality. (3) The requirements of paragraphs (1 ) and (2) shall also apply to any amendment of the a~plication which, in light of the purposes of this title, involves a ma1or change in the proJect covered by the application prior to such amendment. ( c) The B ureau of the Budget, or such other agency as may be designated by the President, is h ereby authorized to prescribe such rules and regulations as are dee.med appropriate for the effective administration of this section. GRANTS TO ASSIST IN PL.\N NED METROP OLIT.\N DEVELOPUENT SEc. 205. (a) The Secretary is autho~·ized t_o make supplementary grants to applicant State and local public bod!es and agencies carrying out, or assisting _in carrying.o?t, m~tropohtan development projects meeting the reqmrements of this s~ction .. (b) Grants ma;r be J?ade under _tlus sect10n only f?r n~etropolitan development proJects m metropolitan areas for wh1ch ·1t has been demonstrated, to the satisfaction of the Secretary, that(1) metropolitanwide comprehensive pl~nning and programing provide an ade.qua_te bas1~ fo:r _evaluatmg_ (A) _t]1e location, fu1ancing , and sched~mg of rnd1 ~1d1!al public ~acll1~y projects ( including but not hm1ted to. ~<?SPita_ls anrl h branes ; . ewer, water , and sewage trea tmen_t fac1 h_ti_e~ ; highway, mass t ransit, airport and other t ransportat10n facili ties ; and recreation and other open.'-sp ace areas) whether or not federally assisted; and (B) other propose~ la:nd deve)opment or uses, :which projects or uses, because of thell' size, density, type, or locat10n, have public metropolitan wide or interj urisdictional significance; (2) adequate metr~poli_tan wide institu_tional or other arrangements ex ist for co?rdma tm~, on the ba IS of S ~lCh metropolitanwide comprehe_n ~1~e plam~mg and programmg , lomtl public pol icies and activities affectmg the development of the area · and (3) public fac~ity _projects and other land development o; uses which h ave a maJor 1.mpact on the development of the a rea are in fact , being carrie~ out in accol'd ":ith such metropo]itanwicl~ compreh ensive plannm_g and programing . . • (c) (1) Where the applicant for_ a g ran t under this section is a unit of general local government~ rt 1:11ust defi!-onstr'.1-te to the satisfaction of the Secr eta ry _t~a_t,. ta~rn_g mto cons1derat1~n the scope of its authority and respons1b1hties, It 1s adequately assurrng that public facility pr oject~ and. ot~er_ la:1d dev_elopment or uses ?f public metrop olitanwide or m terJuns~1ct10nal s1gi:ii.f:icance a r:e berno-, mi d ,yiJl be, carried out in a~ord with met ropo)itan planmng an_d prog raming meeting the reqUJremen ts of ~ubsectr<?n (b ) . . In n:iakmg tlus determination th e Secretary sha:11 ~1ve_special cons1der~t1on to ·whether the applicant is effectively _ass1stmg m , and conform11:1g to, metropoli tan planning an d progra!Ilmg through (A ) the Iocat10n ~nd schedulin oof public facihty proJects, ~bether or_n?t fe~erally ass~sted ; and (B) the est ablishment and cons!s~nt admm1strat10n of z_onmg codes, subdivision reg ulations, and similar land-use and density controls. �52 DEMONSTRATION CIT IES AND MET ROPOLITAN DEVELOPMENT ACT (:2) "\Yhel'e the appl icant for a g rn~1 t t111der thi~ ::;e~·t ion is not a unit of O'enPral local government, both it and the mnt of general loeal govem1~ent ha \'ing ft1ri sdiction over tl1e loea tion of the p r oje<"t mnst 'meet the requirements of t his suLsect ion. (d) In making th~ determi_n ati?ns requjred u!1de r t his seetion , the

,ecretary shall obt am, and g ive full cons1derat 1on t o, the eomments

of the body or bodies (::::itate or ·local) responsible for com prehensive planninlJ' and prorrrnming for the metropol itan a rea. (e) No g ran1 !iliall be made under t h is sect.ion wi,th respee.t t o a 1uetropolitan development p roj ect for which a F ederal grant has been made, or a cont ract of assistance has been entered into, under the legislation refen ed to in paragra ph ('2 ) of section :208, prior t o F ebnrn ry

H, 196(-i, or more thiin one year prior to the date on which t he Secrerary has made t he determmat ions required under t his section with

respect to the applicant and to the area in which the p roject is located: Provided, That in the case of a p roject for wh ich a contr act of iissistance under the legislat ion refen ed to in par agraph (2) of sect ion.:W8 has been entered into after June 30, 1967, no grant sh all be made under th is section unl ess an applicat ion for such gran t h as been ma.de on or before t he dat e of such cont n u:t . (f) Not h ing; in this section shall aut horir.e the ~ eer eta ry to req u ire (or cond ition the a va ilability or amount of fina ncia l assistance aut horized to be provided under t h is title u pon) the adopt ion by any community of a p rogram to achieve a racial balance or to eliminate r acial im~a lance within school districts within the metr opolit anw icle area. EXTlsN T OF URAN'!' SEc. :2-Uti. (a) A g ranr under section 205 shall not. ex<.:ced (I) 2tl per cent um of the cost of the project fo r which th e grant is made; nor (2 ) the F eder al grant made with respect to the p roject under th e legislat ion referred to in par~gr~ph (2 ) of sect ion 208. I n no case ,,hall the total F eder al contr 1but10ns to th e cost of such project be more. than _80 per ~entum. ~otwithstan ding any other p rovision of law, mcludmg requirements with respect t o non-F eder al contributions, grants under section 20_5 shall be eligible for i!1clusion ( directly 01· t.h rou~h refunds or ~red1 ts) as :pa_r~ of the financ!ng for ~uch pr?jeds : P r·ovwed, That proJects or activ1t1es on th e basis of which assistance is pro,·ide~ under section 105 ( c) sh all not be elig ible for assistance under sect,1011 205. (b ) T here are au thorized to be appropriated for /[r an ts under seet ion 205 not to exceed $25,000,000 for the fiscal year end in rr J une ;-W , 1967, and not. to e~ce~ $50,00o,qoo f or th e fi~ca l y~ar enJin p: .June ~O, 1968. A ppropr1at10ns authonzed under this sect ion sh all remain available until expended . CONSU LTATIO N .-\ND CF,RTlFl CA TION ~EC. 207. In ca,rrying out. his a uth ority u11der section :W5 inclutling the issuance of regul~tions, t he Secretary sh all consult ~ith the Department of the In ten or; the Departmen t of Health , Education, and '\Velfare ; th.e Department of Commerce; a nd the Federal .\ viation Agency wit h respect to metropolitan development. projects assisted by those departmen ts and agencies; and h e sha ll for the p urpose of section 206, accept their respective certifications ~s t.o the cost of those projects aJ1d the amount of the non -Federal contribution paid or to be paid to that cost. �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 53 DEFINITIONS SEc. 208. As used in this title( 1) " ~~t!·opolitan development" means all projects or programs fo r the a~qms1t10n, use, and development of open-sp ace land· and the p lannmg an<;! construction of hospita ls, libranes, airpo1is, water supply and distribution facilit ies, sewerage faci lities and waste treatment works, t ransportation facilities, highways, wafer development and land conser vat10n, and other pn bl ic "-or ks faciliti es. (2) "Metropol itan developm ent proj ect " mean s a p roj ect · assisted or to be assisted und~r section 702 of _the H ousing and Urban Development A ct of 1965 ; title II of t he L ibrary Services and Construct ion Act ; section 606 of the P ublic Health S erv ice A ct; section 8 of the F ederal Water Pollution Control A ct; sect ion 120(a) of title 23 U nited S tates Code; section 12 of th e F ederal Airport Act; section 3 of the U r ban Mass Transport a tion Act of 1!)6-:1:; title VII of t he Housing Act of 1961 ; or section 5 ( e ) of the Land and Water Conser vation Fun d Act of 1965 ; or under section lOl( a ) ( 1) of the Publi c Works and E conomic Development Act of 1!)6!5 ( for a project of a type which the Secretary deter mines to be elig ibl e for assist ance under any of the other p r ov ision s listed above ). . (3) "State" means any State of the U mted States, the District of q olumbia, th e Commonwealth of Pue1-_to Ri~o, any territ?ry or possess10n of the United States, or an agency or mstrumentah ty of any of the fo regoing . (4) "Metropolitan area" men.ns a standard metropolitan statistica l area as established by the B ureau of th e Budget, subj ect however to such modificat ions and extensions as the Secretary may determine to be appropriate for the pu rposes of thi s t itle. ( 5) "Comprehensive p lannin g" includes the ~ollowing, to the extent directly related to area needs or needs of a umt · of gener al local government : (A) preparation, as a guide fo r long-range developm ent of general physical plans with respec_t to t_h~ y at~ern a!1d intensity' of la.nd use and the provis ion of_ p ubh c fac!Ji t1e~, mcludmg transportation facilities; (B) prog~ammg of cap1taJ imp rovements based on a determination of relative urgency; ( C) lo11g"~range fi scal plans for implementing_ such _plans and progr_a ms ;_ a1~d (D )_ p~oposed r~gulatory and aclmimstrative measures which aid m ach 1e_v1:1g coordmation of all related p lans o~ the departments or su?dn~1s1011s of the crovernments concerned and mtergovernmenta.l coordmat10n of r elated planned activities amopg the State and local government al agencies concerned. (6) "Hospital"' mean~ any publi c hi>alth cen ter or general, tuberculosis mental chronic disease, or other type of hosp it al a nd related f::i.cilities. sudh as laboratories, outpati~n t dep~ r_tm cnts. nurses' home and trainino- facil ities, a.nd central serv1 ~ f ac1ht1es norm ally operated in connectio~1 with hosp itals, but does not mclude any hospital furni shing primarily dom icil iary care. . . _ . (7) "Areawide agency" means an o-fhcrn l S tate or metropoli tan or regional ag-ency empowered under State or local laws _or under . an

11 terstate compact 01
ag~·ee.ment to perform rompreI1ens1v!3 pl annmg

in an area. an orcram zat10n of the type refened to m section 701 (g ) of the Hot;sing Act of 1954; ?r such other _lliQ:ency or inst ru menta_l ity ,ts may be designated ?Y the (yOYernor (or, m the case of ~netl'oJ?ol1tan areas crossing State Imes, a?y one or more of such agencies or mstrnmenta.lities as may be designate~ by the Governors of the States involved) to perform such pla.nnmg. �54 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT (8) "Special purpose unit of ~ocal gover~e~t" means any s~~ial district, public-purpose corporat10n, ~r other hm1ted-p~rp~se political subdivis10n of a State, but shall not mclude a school d1str:1ct. (9) "Unit of general local government" means '.1~Y city, c_o~~ty, town, pa,r ish, village, or other general-purpose political subd1v1s10n of a State. (10) "Secretary" means the Secretary of Housing and Urban Development. STATE LIMIT SEc. 209. Grants made under section 205 for projects in any one State shall not exceed in the aggregate 15 per centum of the aggregate amourrt of funds authorized to be appropriated pursuant to section 206(b). TITLE III-FHA INSURANCE OPERATIONS FHA :MORTGAGE FINAN CING FOR VETE RANS SEc. 301. The next to last sentence of section 203 (b) (2) of the National Housing Act is amended by striking out "If t he mortgagor is a veteran who has not received any direct , guaranteed, or insured loan under laws administered by the Veterans' Administration for the purchase construction, or repair of a dwellinu. (including a farm dwelling) which was to be owned and occupied by him as his home," and inserting in lieu thereof the following: " If the mortgagor is a veteran,". AREAS AFFECTED BY CI VIL DISORDE RS SEc. 302. Section 203 of the National H ousing Act is amended by adding at the end th ereof the follo wing new subsection : "(1) The Secretary is authorized to insure under this section any mortgage meeting the requiremen ts of this section , oth er th an the requirement in subsecti on (c) relating to econom ic sotmdness, if he determines that (1) the dwelling covered by the mor tgage is situated in an area in which rioting or other civil disorders have occurred or are threatened, (2) as a result of such actu al or threatened rioting or other disorders the property wit h respect to which t h e morto-age is·executed cannot' meet the normal requirement s with respect to0 economic so1;mdn~s, and (3) such property _is_ an acceptable risk g iving d,ue cons1derat10n to the need for pr ovidmg adequate h ousing for families of low and moderate income in such area." COOPER.\ T I VE H Ot;SJ NG IN SUR ANCE l,' UND SEC. 303. (a ) Section 213 (m) of the National Housing Act is amended by striking out ", but onl y in cases where the consent of t he mortgagee or lender to the transfer is obtained or a request by the mortgagee or lender for t he transf er is received by the Comrniss ioner within such peri od of t ime after the date of the enactmen t of this subsection as the Commissioner sha,11 prescribe" . (b) Section 213 (n ) of such A.ct is amended( 1 ~ by striki ~1* out _" insu~·ed _un~er this section and sections 207, 231, and 232 · and msertrng m lieu th ereof "the insur ance of which is the obliga.tion of eit her the Management Fund or the General I nsurance F und " ; and (2) by adding at the end th ereof the foll owino- new sentence : "Pre1n ium charges on the insurance of mortgage;' or loans transfe rred to the Management F und or insured pursuant to commit ments t ransfer red to the Management F und may be payable in �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 55 deue111.111·es 1Yhic-l1 art> the ohliirntion of eitht>1· the. ;\fa11 .we111P11t Fm1d01·the(,.enel'all11surnneel<'und.'" · ,... l<·)( 1) The fourth sent enee of seetio11 :LPqk) of s1wli .\ d i:a111ended to read as follows: " The Secretn ry is di 1·ec·tt>d to t rn11sfer 10 t.J1e Management F1111d from the General lnsuraiwe Fund nn a11101mt equal to the total of the premium pityments theretofore made with respect to the insurance of mortgages and loans transferred to the

\fan_agemen_t. Fund pursuant to subs~tion (m ) 111i11us th_e total of any

adm1111strat1ve expenses theretofore mcurred m eo111leet1011 wi th sueh mortgages and loans, plus such other amounts as the Se<Tetarv determines to be necessary and appropriate." .• (::2 ) The seeond proviso in seet ion 2rn(J) of sueh .\<'t is nn1e11rled hy striking out "pu rsuant to subsection (k) or (o)" n11d iwwl'ti11/! in Jien t.l1ereof "pursuant. to s11bse<'t ion (o)~-- ~Ee. :104. Sect_ion :trn(j) (2 ) (A) of the _Natio_nal Housing .\.<-t is amended by addrng at the end thereof the followmg: ·'except that. in t he case of improvements or arlditional community facilities, the oti tstanding indebtedness may be increase<l by a n amoun t e1p1a l to 97 per cent.um of the amount which the Secretary est imates will ue the value of such improvements or facilities, and the new outstanding indebtedness may ex ceed the original principal obligation of the mortgage if such new outstanding indebtedness dors not exceecl tlw l imitations imposed by subsection (b) ;". M OH'Jn.\lH: LJ M JTS U NDER SECTION 2 20 SAL ES HOl.'SINO MOHTILl<l~; J N SU H,\NCE PHOGRAM S EC. :{05. (a ) Section ~20(d) \3) ( A ) (i) of the National Housin cr ..:\ct. is a men ded by str iking ou,t' (3)_ 75 p_er 9rnt~m of such replace':.' ment cost in excess of $20,000'· and msertmg m h eu thereof "(3) 80 per centum of such rep lacemen_t cost in excess _of $20,000". (b) S ection 220( d ) (3) ( A ) (1) of such A ct 1s further amended by addin ,,. before the sernicolon a.t the end thereof the following: " : Pro·videdfwrtlie1· That if the mortgagor is a veteran and the mortgage to be insured u~der this section covers property upon which there is located a dwellin<Y designed principalJy for a one-family residence. the p r incipal obligation may be in an all?ol!nt equal ~o the sum of (1}' 100 per centum of $15,000 of t he Comm1ss10ne1"s estimate of replacement cost of the property, as of t he date the mortgage is accepted for insurance (2 ) 90 p er centum of such r eplacemen t cost in excess of $15 000 but n'ot in excess of $20,000, and (3 ) 85 per centum of such repiacement cost in excess of $20,000. As used herein, the term 'veteran' means any person who ser v~d on active duty in t_he A r med Forces of the United States for a penod of not l_ess t han nrnety days ( or is certified by the Secretary of De!en.s e as ha vmg performed extrahaza r dous service), and who was discharged or r eleased therefrom under conditions other than dishonorable". INCREASF:D MORTG.\ GE LlMlTATIONS UNDER SEC'f'.ION :l 2 0(d) ( :!) (ll ) SMALL PROJECTS CONTAINING LARGER FAMILY DWE LLING UNITS ron ,Si,~c. ;106. (a) ~e~tion ~20 (d ) (3t( B ) (ii i) of the N~tiona l Housing Act is amended by ms~rtmg after . ; an~ exceI?t that t he following:

'with respect to rehab1htat1on pro1ects mvolymg _not more t han five

family units, the Secreta9" may by regulat1~m . m '?rease by 25 per centum any of the foregomg dollar amount hm1tat10ns contained in �56 DEMONSTRATIO~ CITI ES AND METROPOLITAN DEVELOPMENT ACT this clause whirh are applicable to units with two, three, or four or more bedrooms: ProvUed, That". · (b) Section _220(~) (3) (B) (~ii) of such .t\-?t is further amenc!.ed( 1) by msertmg 1mmedrn.tely bef?re by not to exce~d ~o per centum" the following: "(as determmed after the application of the preceding proviso)"; and . . . (2) by striking out "ProvUed, That not~m~" and msertmg .in lieu thereof "Provi,d,ed further, That nothmg. MORTGAGE Lll\:UTS FOR HOMES UNDlill SECTION 2 21 ( d ) ( :! ) SEC. 307. Section 221(d) (2) (A) of the National ~Ious~ng Ac~ is amended by striking out "$11,000" and "$18,000" and m sertmg m heu thereof "$12,500" and "$20,000", respectively. · NQNDWl".LLING FACILITIES IN SECTION 22 1 PRO,JECTS IN URBAN REKEW AL AREAS SEc. 308. Section 221 ( f) of the National Housing Act is amended by insert ing before the period a,t the ehd of the first sentence the !ollow ing: " : Provi,d,ed, That in the case of any such property or proJect located in an urban renewal area, the provisions of section 220 ( d ) ( 3) ( 13) (iv ) shall apply with respect to the nondwelling facilities which may be included in the mortgage if the mortgagor waives the right to receive dividends on its equity investment in the portion thereof devoted to community and shopping facilities". SI NGLE OCCUPANTS IN SECTION 2 21 ( d) ( 3) H OUSI~G SEC. 301>. Section 221(f) of the National Housing Act is amended by adding at the end t hereof the following new sentence: "Low- and moderate-income persons who are less t h an 62 years of age shall be eligible for occupancy of dwelling un its in a project. finan ced with a mortgage insured under subsection (cl) (3), but not more than 10 per c·entum uf the dwelling units in any such project shall be available for cccupancy by such persons." INSURANCE OF MORTGAGES UNDER SECTION 22 1 TO FINANCE PURCHASE AND REHABILITATION BY NONPROFIT ORGANIZATIONS OF HOUSING FOR RES.\LE TO LOW-INCOl\IE PURCHASEUS SEc. 310. (a) Section 221 of the National Housing Act is amended by adding at the end thereof the following new subsection: ' "(h) (1) In addit ion to mortgages insured under the other provisions of this section, the Secretary is authorized, upon application. b:y the mortgagee, to insure under this subsection as hereinafter proy1ded any_1:1or_tgage (~ncl~ding advances under such mortgage durm g rehab1htat1on) wluch 1s executed by a nonprofit orgamzation to finance th e purch ase and rehabilitation of deteriorating or substandard housing for subsequent !'~sale to low-income home p urchasers and, upon such ~erms and cond1~10ns as the Secretary may prescribe, to make commitments for the msurance of such mortga<TeS prior to the 0 d ate of their execution or disbursement thereon. "(2) To be eligible for insurance under paragraph (1) of this subsection, a mortgage shall. " (A) b~ executed by a private nonprofit corporation or association approved for purpo~es of this subsection by the Secretary, ~or the purpose of financmg the p urchase of property ( comprismg one or more tracts or parcels, whet her or not contiguous) upon �DEMONSTRATION CITIES AN D M E TROPOLITAN DEVELOPMENT ACT 57 \\:hi_d1 there is hwatt>d dett>1·iorntinir 01· :,;11li:,;rn 11dard housin/! ( 'OJ Js1stmg of fiye or more sing-le-fami ly l°hrnllings of deta('hed , semidf:UWhed, or row (·011stnwtion and o-f rehabilitating Sll!'h dwPll in!!.":,n th a ,·iew to sulise, 111e11 t resale as herein after prm·ided: · ·'(B) be secured by the property which is to he pnrl'h,tsr.d and 1·p'habi lita ted with the proceeds thereof: ·'(C) be in a principal amount not. ex\'eeding the appraised rnlue of the property at the ti111e of its pur('hase under the mortgage plus the est imated cost of the rehabilitation; "(IJ) bear interest (exclusive of premium drnrcres for insuran ce and serv ice charge. if any) at the rate in e~ct 11ncier the prnviso in subsection (ct) ( fi) at the time of execution: ·' (E) p rovide for complete amortization (subject to paragrnph (5) (E)) by periodi c payments within snch term as the .Secretary may prescribe; and " (F) provide for the release of indi,·idual s i11gle-fa111ily dwelli1~gs from the. Iien _of the mortgag~ upon t he sale of the rel1:tb1litated dwellmgs 111 accordance with paragraph (5). " (3) No mortgage shall be insured wider paragraph (1) unless the mortgagor shall have demonstrated to the satisfaet ion oft he Secretary that (A) the property to be r ehabilitated is located inn neighborhood which is sufficiently stable and conhiins sufficient public facilities and amenities to support long-term values, or (B) the rehabilitation to be c'.1rried out by the mortgagor _plu~ its .r elat~d activities and the activi t ies of other owners of housing m the neighborhood, together with actions to be taken by public authorities, will be of such scope and quality as to give reasonable promise that a stable environment will be created in the neighborhood. " ( 4) The aggregate principal balance of all mortgages insured under paragraph (1) and outstanding at a.ny one time shall not exceed $20,000,000. "( 5) (A) No mortg~g e shall be insured !-mder paragraph (1) unJess t_he mortgagor enters mt-0 an agre~me~t (m form and 1substance satisfactory to the .Secretary) that it will offer to sell the d wellings involved, up on completion of t heir rehabilitation, to individuals or families ( hereinafter referred to as ' low-income purchasers') determined by the Secretary to have incomes belo,". the maximum amount. · specified (with r espect to the area involved) m section lOl(c) (1) of the Housing and Urban pevelop1~ent Ac~of 1965. . " ( B ) T he Secretary 1s authonzed to msure under this· pa.ragraph mor tgages executed to fin anr:e the ~ale of individual dwellings to lowincome purchasers as provided m subparagraph (A). Any such mortgage sh all" ( i) be in a principal_ ai:nount equal to tba~ portion of the unpaid balance of the prmc1pal mor~gag_e covermg the property (insu red under paragraph (1)) wh ich IS a llocable to the individual dwelling in volved; and "(ii) bear interest at the same ~ate .as the prin?ip~l mortgage, and provide for complete amo~-t1_zat10n by per10d_1c payments within a term equal to the remamm~ term (determmed without regard to subparagraph (E)) o~ s_ucn princi~al ~ortgage. "(C) The price for wh1c~ any md1v1dual d wellmg 1s sold to a lowincome purchaser under this par agraph shall be the amount of the mortgage covering t he sale ,is 1eterm~i:ed under subparag raph (B) , Pxcept that the p urchaser shall m _add1t1on thereto be required to pay on account of the property at the tl.JT!,e of purchase su~h a!Ilount (which 1:,hall not be less than $200, but which may be applied m whole or in pa.rt toward closing costs ) ~s the ~ecretary may determine to be reasonable and appropriate m the circumstances. �58 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPME NT ACT "(D) Upon the sale under this paragraph of a~y individual_d"'.ellino- such dwellino- shall be released from the hen of the prmcipal m~;to-ao-e and such mortgage shall thereupon be replaced by an individu: 1 ~~rtgage insured under this p aragraph to the extent of the portion of its unpaid balance which i~ allocable to _the_ d:welling cov~red by such individual mort~age. U n~il ~11 of the mdividual dwellmgs in the property covered oy the prmc1pal mortgage h ave been sold, the mortgagor shall hold and operate t~1e dwellings re~aii:iing uns_old at any o-iven time as though they constituted _rental umts m a }?TOJect covered°by a mortgage which is insured under subsection (d) (3) (and which receives the benefits of · the interest rate provided for in the proviso in subsection ( d) ( 5) ) . "(E) Upon the sale under this par agraph of all of the individual dwellino-s in the property covered by the principal mortgage, and the release ~f ·all individual dwellings from the lien of th e principal mortgage, the insurance of the principal moii,gage shall be terminated and no adjusted premium ch arge shall be charged by th e Secretary upon such termination. "(F) Any mortgage insured under t his paragraph shall contain a provision that if the low-income mortgagor does not continue to occupy the property the interest rate sh all increase to th e highest rate permissible m1der this section and the regulations of the Secretar y effective at the time of commitment for insurance of the principal mortgage; except t hat the increase in interest rate sh all not. be applicable if tl'!e property is sold and the purchaser is ( i) the nonprofit organization which executed the principal mortgage, (ii ) a public housing agency having jurisdiction under the U nited States Housing Act of 1937 over the area where the.dwelling is located, or (iii) a lowincome purchaser approved for the purposes of this paragraph by the Secretary." . (b) (1) Section ~21 (g ) (1) of such Act is amended by inserting after "paragraph (2) of subsection ( d) of this section" the follo wing : "or paragraph (5) of subsection (h) ofthissection". (2) Section 221(g) (2) of such Act is amended by inserting after "paragraph (3) or (4) of subsection (cl) of this sect.ion" th e following : "or paragraph (1) of subsection (h) of this section". , ( c) _S ection 221 ( f) ?,f. such Act is amended by in~erting after 'Housmg Act of 1!)61,' m the fourth sentence "or which meet the requirements of subsection (h)," . _ (cl) Section :30~ (h) o_f su~h J\ct is amended by striking out "section 221(cl) (3)" and msertmg m lieu thereof "sections 22l(d) (3) and 221(h) " . APPLICATION OF DAVIS-BACON ACT TO COOPF.RATJVE HOUSING PROJECTS INSURED UNDER SECTION :!2l(d) ( 3 ) AND (d ) (4) AND 1\IORTGAGES INS1:_1RED UNDER SECTION 2 :! 1 ( h) ( J ) SEC:- 311. T ~1e third sentence ~f _section 212(a) of the Nat ional Housmo- Act _is an:ien~ed _by stnkmg out "subsection (d) (3) or (d) (4)?' a!lcl msertmg m lieu the_reof "subsection (d) (3) or (d) (4) and ( deemmg t.he term 'construction' as used in the first sentence of this su1?section to mea!1 rehabilitation) of ru1y mortgage described in subse?t,on (h) (1) _w hich C<?vers proper_ty on which there is located a dwellmg or_ d ,rnll mg~ designed prmcipally for residential use for more than eigh t families; except that compliance with such provisions may be waived by the Secretary" (1) with respect to mortgages described in such subsection (d) (3) or (d) (4) , in cases or classes of cases where laborers or mechanics (not otherwise employed at any time in the construe- �DEMO1 -sTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 59 tion of the project) voluntarily donate their services without ?ompensation . for the. purpos~ of lowering their housing costs m a cooperative housrng proJect and t.he Secretary determines that any amounts saved thereby are fully credited to the cooperative undertaking the construction, and · "(2) with respect to mortgages described in such subsection (h) (1), in cases or classes of cases where prospective owners of such dwellings valuntari'ly donalte their seryices without compensation or_~the~ persons (not otherwise empl~yed at .any time m the rehabilitation of the property) voluntarily donate their · services without compensation, and the Secretary determines that · any amounts saved thereby are fully credited to the nonprofit organization undertaking the rehabilitation." WAIVER OF DEDUCTION ON ASSIGNllU:NT OF PROrERTY TO SECRETARY IN LIEU OF FORECLOSURE SEC. 312. Title V of the National Housing Act is amended by adding at the end thereof the following new section: "WAIVER OF DEDUCTION ON ASSIGNMENT OF PROPERTY TO SECRETARY IN LIEU OF FORECLOSURE "SEC. 523. Notwithstanding any other provision of this Act, from and after the date of the enactment of the Demonstration Cities and Metropolitan Development Act of 1966, the Secretary, under such terms and conditions as he may approve, may waive all or a part of the 1 per centum deduction otherwise made from insurance benefits with respect to ~ ultifamily hou~ing or _land devel~pment ~ortgages assi!med to him, where the assignment is made at his request m lieu of ~ foreclosure of the mortgage." I TITLE IV-LAND DEVELOPMENT AND NEW COMMUN ITIES F.XPER I MENTAL MORTGAGE INSURANCE PROGRAM 10R NEW COMMUNITIES SEc. 401. (a) Title X of the N atio_nal Housing Act is amended by inserti11g afters~.c~ion 10~3 the follo;ymg new section 1004 and redesignating the remammg sect10ns accordmgJy : "NEW COMJ\fUNITll~ "SEC. 1004. (a) New communities c~ns~sting of developments, satisfying all other requirements under t]us tit)e, may be _approved under this section by the Seci:etary for m<;>rtgage msurance if they meet the requirements of subsect10n (b) of this section. "(b) A development shall b~ eligibl_e f~,r a_ppr•ov~J a~ a new community if the Secretary ~eterfllmes it will, m view of its s1~e and scope, make a, substantial contribution to the sound and economi c g rowth of the area within whi ch it is locat~d in the form ~f" ( 1) substantial econo!11!es, m~de possible ~hrough l?-rge-scale development, in the prov1s10n of improved residential sites· " (2) aJequate housing to be provided fC!r those who wo;ld be employed in the commun~tJ'. ~r the surrounding a r~a; _ "(3) maximum accessibihty from the new r esident!al sites to industrial or other employment centers and commercral, recreational and cultural facil~t~e~ in or near th~ community_; and " (4) maximum access1b1hty to any maJor central city in the 11,rea. �60 DEMONSTRATION (:!TIES AND METROPOLITAN DEVELOPMENT ACT " ( c) No development shall be approved as a new community by the Secretary under this section unless the const ruction of such development has been approved by the local governino- body or bodies of the locality or localities in which it ·will be located and by the Governor of the State in which such locality or localities are situated: P1·ovw ed, That if such locality or localities have been delegated general powers of local self-government by State la"- or State constitution, as determined by the Secretary, the approval of the Go.ernor shall not be required. . " ( d) The aggregate amount of mortgages insm:ed under this title with respect to new commun ities approved under this section and outstandinrr at any one time shall not exceed $250,000,000." (b) No mortgage shall be insured under title X of the National Housing A ct with respect to a new community approYed under section 1004: of such A ct (as added by subsection (a ) of this section) after October 1, 1972, except pursuant to a commitment to in sure entered into before that date. MORTGAGE Al\10CNT A N D T E Rl\1 SEc. -:l:02. (a) Section 1002(c) of the National Housing .Act is amended by striking out "$10,000,000" and in serting in lieu thereof "$25,000,000". (b) Section 1002(d) (1) of such Act is amended to r ead as follo,ys : " ( 1) contain repayment provisions satisfactory to the Secretary and have a maturity not to exceed seven years, or such longer maturity as the Secretary deems reasonable ( .A) in the case of a privately owned system for ,...-ater or sewerage, and (B) in the case of a new community approved under sect ion 1004 ;". ENCOURAGEMENT OF SMALL BU ILDERS SEC. 403. The section of the National Housing \ ct rcclesio-nated as section 1005 by section 4:01 of this _\.ct is amended by in~erting "particularly small builders," after " broad participa tion by builders,". WATER .-\ND SEWERAGE FAC'lLJTiES SEC. 40-!. The section of the National Housing Act reclesio1iatecl ns section 1006 by section -!01 of this A ct is amended to rend ~s follows : " W ATER AND SEW ER.AG E F ACll.lTIES "S_Ec. 1006. After development of the lan~l it shall be served by public systems for m iter and se,,erage which are consistent with other ex isting or prospect ive systems within the area, except th at" (a) in the case of sy~tems for water, the lan d may be served by p1wately or cooperatively owned systems which are consistent with other ex isting or prospective systems within the area; arc approved as adequate by the Se ret ary ; and are reo·ulnted or supervised by the S tate or J?Olitical subdivision or ~n agency thereof, or (m the absence of such State or local reo·ulation or supervision) are ?therwise regulated in a maimer ac~eptable to the Secretary, with r esp ec~ to user ~-ates and ch arges, capital structure, methods of operation, rute of return, and cond itions and terms of any sale or transfer ; and �DEMON STRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 61 " (b) in the case of systems for sewerage, the land may be served by. . "(1) _existing privat ely or cooperatively owned systems ( m cluding r easonable extensions ther eto) which are approved as adequate by the Sec1,etary, and which a re regulated or supervised by the Sta te or political subdivision or an agency ther eof, or ( in the absence of such State or local r eo-ulation or supervision) are otherwise r egulated in a man~er accept able to the Secretary; or · " ( 2) if it is necessary to develop a new system and the Secretary deter m ines tha t publi c ownership of such· a system is not feasible, an a~equate privatel;y or cooperatively owned n ew sy stem (A ) which he finds consistent with other exi stinoor p rospective systems within the area, (B) which durino- t h~ period of such ownership will be r egulated or supervised by the S tate or p olit ical subdivision or an ag~ncy thereof, or (in the absen ce of such State or local r egulation or supervision) will be otherwise regulated in a manner acceptable to the Secretary, with r espect to user r ates and ch arges, capital struct ure, ~etho~ of oper a~ion, and r ate of 1;etu01 , and (C ) regarding which he receives a_ssurances, ~atisfa ctory to him, with r espect to even tual p ublic own ership and op eration of the system and with r espect to the conditions and terms of any sale or tr ansfer. " F EDERAL NATIONAL MORTGAGE ASSOCIATION S PECL\L .\ SSISTAN CE FOR N EW COllfMUNI TIES SEC. 405. Sect ion 302 (b ) of the National H ousing Act is amended by inserting after "or title VIII," in the I?r oviso the follow ing : "or under title X with r espect t o a new comm umty approved under section 1004 ther eof,". JI URBAN P L A N N IXG GRANTS · SEC. 406. Sect ion 701(a) (4) of the Housing Act of 1954 is amended by inser ting before t he semicolon at the end thereof the following: " or for a r eas wher e r apid urbanization is expected to result on land d~veloped or to be d ~veloped as_ a new,, community a.pp roved under section 1004 of the Nat10nal Housmg Act . PUBLIC F ACILITY L OANS SEC. 407: Section 202(b) (4) of th~ Housing Amendments of 1955 is am ended by addin~ befo~~-the p eriod a~ the _e nd of th~ seco:r~d sentence the followin g : ', or ( 111) to be provided m connection with the establishment of a n ew community approved under section 1004 of the National Housing Act". T ITLE V-MORTGA'.GE INSURA NCE FOR GROUP P RACTICE FACILITIES PURPOS~ SEC. 501. It is the purp ose of tJ:iis title to a~sur~ the availability of credit on r easonable te~s to umts or organ1;Zat10ns en_gaged in the group practice of medicme, optometry, or dentistry, partic_ularly those in smaller communities an d th?se ~ponsore~ by cooperative ?r other n onprofit organizations, _to ass!s.t _m financmg the construction and equipment of group practice facilities. �62 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT ESTABLISHMENT OF PROGRAM SEc. 502. (a) The National Housing A ct is amended by adding at the end thereof the following ne·w title : "TITLE XI- MORTGAGE INSURANCE FOR GROUP PRACTICE FACILITIES "INSURANCE OF MORTGAGES "SEc. llOl. (a:) The Secretary is au thorized (1) to insure mortgages (including advances on. such mortgages during construction), upon such terms and conditions as he m ay prescribe, in accordance with the provisions of this title, and (2) to make commitmen ts for the insuring of such mortgages prior to the date of their execution or disbursement thereon. No mortg age shall be insured under this t it le after October 1, 19GD, except pursuant to a commitment to insure issued before that date. " (b) To be eligible for insurance under t his tit.le, the mor tgage shall (1) be executed by a mortgagor that is a group practice unit or organization, a.pprovecl by the Secret.u-y, (2) be ma.de to a.ncl held by a mort&agee ·approved by the Secretary as responsible and able to ser vice the mortgage properly, and (3) cover a property or project which is approved for mortga/!e insurance p rior t o the beginning of construction or rehabilitation and is desig ned for use as a g r oup practice facil ity which the Secretary finds ,Yill be constructed in an economical manner, will not be of elaborate or extravagant design or ma.teri als, and will be a.dequate and suitable for carrying out the p urposes of this Litle. No mo1-tgage sh all be insured under tlns title unless it is shown to the sati sfaction of the Secretar y that the applicant would be unable to obtain the .mortgage loan wi thout such insunuwe 01 1 terms compa rable to those speciriecl in suusPctien (c) . " ( c) The mortgage shall" (1) not exceed $5,000,000; "(2) not exceed 90 per centum of the amount which the Secretary estimates will be the value of the property or project when construction or reh abili tation is completed. The value of the property may include the land and the proposed physical imp rovements, equipment, utilities within the boundaries of the property, architects' fees, taxes, and interest accruing during construction or rehabilitation, and oth er miscellaneous charges incident to construction or r ehabilitation and approved by the Secretary; "(3) have a maturity satisfactor y to the Secretary but not to exceed tw~mty-five ye:ars,. and provi~e ~or complete a~or tization of the prmcip al obhgat10n by per10dic p ayments within such term as the Secretary shall prescribe; and " ( 4) bear interest ( exclusive of premium charges for insurance, and ser vice charges if any ) at a rate of not to exceed 5 per rent~m per ann~m of the amom1t of the principal obligation outstandmg at any t ime, or not to exceed such rate (not in excess of 6 per centum per annum) as th e Secretary finds necessary to meet the mortgage market. " (cl) Any contract of insurance executed by the Secretary under this title s1rnll be crmcln ive ev idence of the elio:ibility of the rnorto-ao-e for insurance, and the Yaliclity of any Contract 'for insuranc~ ~O Pxecnt Pd sha11 be. incnntestable in the hancls of an approved mort O'ao-ee fr? m the elate ?f the execuhon of snch conttact , except for fra~l'or rn1sreprPsrnt'a1 10n on the part of surh appr oved mortgagee. �DEMO STRATION CITIES AN D ME TROPOLITAN DEVELOPMENT ACT 63 " ( e) Each mortgage insured lmder this title shall contain an w1der!aking (in accor~ance 1'ith regulati?ns prescribed under this title and m force at the trme the mo~tgao-e is approved for insurance ) to the effect that, ex~pt as authorizedby the Secretary and the morto-agee the property will be used as a group praotice facility until t he ~ort~ gage h as been p aid in full or the contract of insurance otherwise termina ted. " (f) No mortgage sh all be insured under this title 1mless the mortgagor and the mortgagee certify (1) that they will keep such records· relat ing to the mortgage transaction and indebtedness, to the construction of the facility covered by the mortgage, and to the use of such facility as a group practice facility as are prescribed by the Secretary at the time of ~uch cer~ification, (~) that they will make such reports as may from time to trme be regwred by the Secretary pertaining to su ch matters, and (3) that the Secretary shall have access to and the right to examine and audit such records. "PREJ\UUJU S "SEc. 1102. The Secretary sh all fix prem ium charges for the insurance of morto-ao-es under this title, but such charges shall not be more than 1 per ce~ttm per annum of the amount of the principal oblio-ation of the mortgage outstanding at any time, witho~1t_taking into a~count delinquent payments or prepayments. In addit10n to the premium charo-e the Secretary is authorized to ch arge and collect such amoun ts ash: diay deem reas?nable _for the an alysis of a propos~d project and the appraisal and mspect10n of the property and improvements. Where the princi_pal obligation of any ?1-ortgage accepted for insurance under this titl_e is paid in_ full prior to the maturity date, the Secretary is auth<;>nzed to reqmre _the payment by tl~e ¥JOI'tgagee of an adjusted premmm charge. This charge sh all be m such amount as -the Secretary determines to be equitable, but not in excess of the aggregate amount of the premium ch3:rges that the mortgagee would otherwise have been reqmred to pay If the mortgage had continued to be insured lliltil the maturity date. Where such prepayment occurs, the Secreta.ry is authorized to refund to tlie. mortgagee for th e accoun t of the mortgagor all, or such portion. as he shall determine to be equitable, of the current unearn~d pr~m 1um charges theretofore paid. Premium charges fixed U?der this sect10n ~h all be payabl~ by _the mortgagee either in cash, or m debentures which ar~ the obh gat10n of the General Insurance F.und at par plus accrued mterest, at such times and in such manner as may be prescribed by the Secretary. "PAYMENT 01,' INSVR.<\ NCE J.mNEFITS "SEc. 1103. The mortgagee shall be ent itled· to receive the benefits .of the insurance under this title in the manner: prov ided in subsection (g) of section 207 with respect to_~ortgages msu1:ed under that section. For such purpose the ,rrovis10ns of subsect10ns (g), (h), (i), (j) (k), (]), and (n) of section 20~ shall apply to_mortgages ~n surecl under this t itle and all references m such subsect ions to section 207 shall be deemed to refer to this title. · "REGULATIONS "SEc. 1104. The Secretar:y ~hall prescribe su~h regulations as may be necessary to caIT;Y out this title, after ~onsultmg with the Secretary of Health, Educat10n, and Welfare w~th. respec~ to any h_ealth or medical aspects of the program under this title wluch may be myolvecl in such regulations. �64 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT "ADMINISTRATION "SEc. 1105. (a) At the request of individuals or organizations operating or contemplating the operation of group practice_ facilities ( '.1-s defined in section 1106 ( 1)), the Secretary may provide or obtarn technical assistance in the planning for and construction of such facilities. " (b) "\Vith a Yie,Y to a voiding mrnecessary duplication of existing staffs and facilities of the Federal Government, the Secretary is authorized to utilize available services and facilit ies of any agency of the Federal Government in carrying out· the provisions of this title, and to . pay for such services and facilities, either in advance or by way of reimbursement, in accordance with an agreement between the Secretary and the- head of such agency. "DEFINITIONS "SEc. 1106. For the purposes of this title"(1) The term 'group practice facility' means a facility in a State for the provision of prevent.ive, diagnostic, and treatment services to ambulatory patients (in which patient care is under the professional supervision of persons licensed to practice medicine in the State or, in the case of optometric care or treatment, is under the professional supervision of persons licensed to practice optometry in the State, or, in the case of dental diagnosis or treatment, is under the professional supervision of persons licensed to practice dentistry in the State) and which is primarily for the provision of such health services by a medical or dental group. "(2) The ·term 'medical or dental group' means a partnership or other association or group of persons licensed to practice medicine or surgery in the State, or of persons licensed to practice optometry in the State, or of persons licensed to practice dent istry in the State, or of any combination of such perscms, who, as their principal professional activity and as a &roup responsibility, engage or undertake to engage in the coordinatect practice of their profession primarily in one or more group practice facilities, and who (in this connection) share COJ?lmon oyerhead expenses (if and ~o the extent such expenses are paid by members of the group), medical and other records and substan~i3:l por~ions of ,the equip1;1ent and the rrofessiona~, t~cl;nical, and ~dm1111strat1ve staffs, and winch p~rtnersl11p or association or group is composed of at least such profess10nal personnel and make a.v ailable at least such health services ns may be provided in reQlllations prescribed under this title. "' "(3) The term 'group practice tmit or organization' means" (A) a private nonprofit agency or organization undert.akincr to provide, directly or through arrangements with a ·m edical o~ dental group, comprehei:isiv~ medical care,. optometric care, or d ental care, or any combmat1on thereof, which may include hos~italizati_o n, to memb~rs or subscribers primarily on a group practice prepayments basis; or. "(B) a private nonprofit agency or organization established f?r the purpose of in~proving the av~ilability o~ medical, optometric, or dental cnre m the commumty or havmo- some function or functions related to the provision of such c~re, which will, through lease or other arrangement, make the crroup practice fa?ili!Y with _respect to whic~ assistance has been r~quested under " this title ava.ilable to a med1~al ?r dental group for use by it. . ( 4) The t~rm nonprofit orgam zati~n' n:ieans a corporation, association, foundat10n, trust, or other orga.m zat10n no part of the net earnings of which inures, or may )awfully ·inure, to the benefit of any �DEMONSTRATION CI TIES AND METROPOLITAN DEVELOPMENT ACT 65 · private sh areholder 01· in dividual except , i11 the cm;e of an oro·auizat ion the purposes of which include the provision of personat'lrnalth se_rvice.s to irs ~11e1~1bers 01· subser il;>e_rs or their depe1_1dents under a plan of such Ol'{.!"llll lzatton fo r the prov1s1on of sueh services to them (,Yhich plan may include the provision of other services or insurance benefits to the1:i, ) , th~ough the provision of such health services (or such otherser v1ces or msurance benefits) to such member or subseribers or dependents under such plan. " ( 5) T he term 'State' includes the Com mon wealth of P uer to Rico · G uam, the V irg in I slands, American Samoa, and the District. of Columbia. " (6) T he term 'mortg age' mea11s a .tirst mortgage 011 real estate in fee simple, or on the interest of either t110 lessor or lessee thereof (A ) w1der a lease for not less than ninety-nine years which is renewable or ( B ) under a, lease h aving a p eriod of not less than fifty years t~ run from the date the mortgage was executed. The term 'first mortgage' means such classes of first liens as are commonly given to secure advances ( including but not limited to advances during canst.ruction) on, or the unpaid purchase p rice of, real estat.e under the laws of the S tate in which t he real esta te is located , together with the ('redit instrumen t. or instn1ments, if any, secured thereby, and any mortg,age ~ay be in the form of one or m~re trust mortgages or mortgage mdentures or deeds of t rust, securrng notes, bonds, or other credit instruments, an d, by the same instrument or by a sep arate instrument may create a security interest in initial eqmpment., whether or not attached to the realty. "(7) The ter m 'mortgagee' means the original lender under a mort<Yage and his or its successors and assigns, and includes the holders ~f c;edit instruments issued under a trust mortgage or deed of trust pursuant to which such holders act by and through a trustee named therein. " "(8) The term 'mortgagor' means the ori? inal borrower un der a mortO'a<Ye and his or its successors and assigns.' (bf The first sentence of _s~ction 227 ~f Sl!-ch Act. is amended by inserting a fter "new or reha?ihtated 1!1ultitam?lY housmg" the following: "or a property or pro3ect descnbed m title XI". LABOR STANDARDS SEC. 503. Section 212 (a) of the National Housing Act is amended by adding at the end thereof the following _new sentence : "The provisions of this section shall also apply to the_insurance of any mor tgage under tit.le XI; and each laborer or mechanic employed on any facility covered by a mortgage insured under such titl_e shall_recei_ve compensation at a rate not less than one and one-half times his baSJc rate of pay for all hours worked in any workweek.in excess of eight hours in any workday or forty hours in the workweek, as the case may be." AMENDMENTS TO OTHER FEDERAL LAWS SEC, 504. (a) (1) Th~ sixth sentence of para~aph "Seventh" of section 5136 of the Revised Statutes, as amended (12 U .S .C. 24) is amended by inserting af_ter "Fe~eral Home Loan Banks," the foll~wing: "or obligatious which are ~nsured by the Se_c retary of Housing and Urban Development under title XI of the N at10nal Housing Act'". (2) The third sentence of the first paragraph of section 24 of the Federal Reserve Act, '.1s amended (12 U:S .C. 3,;1 ), is ame~ded by inserting after "or sections 1471- 1484 of title 42, the followmg: "or �66 DEMONSTRATION CITIES AND M E TROPOLITAN DEVELOPMENT ACT which are insured by the Secretary·_of Housing and Urban Development pursuant to title XI of the National Housing Act,". (b) Subsection (a) of section 304 of th e Trust Indenture Act of 1939 (1 5 U.S.C. 77ddd) is amended by striking out the word " or" at the end of paragraph (8) ; by striking out th e p eriod at t h e end of paragraph (9) and inserting in lieu t hereof a semicolon and the word or"; and by adding after paragraph (9) a new paragraph as follows : "(10) any security issued under a mortgage or t rust deed indenture as to which a contract of insur ance under t itle XI of the National Housing Act is in effect; and any such security shall be deemed to be exempt from t h e provisions of the S ecurities Act of 1933 to the same extent as though such security were specifically enumerated in section 3(a) (2), as amended, of th e Securities Act of 1933 (15 U.S.C. 77c (a ) (2) ) ." (c) Section 263 of ch apter X of the Bankruptcy Act (11 U.S .C . 663) is amended by adding at the end thereof the follo wing: "Nothing contained in this ch apter sh a.11 be deemed to affect or app ly t o the creditors of any corporation under a mortgage insured pursu ant to title XI of the National Housing Act." TITLE VI-PRESERVATION OF HISTORIC STRUCTURE S P~ESERVATION OF HISTORIC STRUCTURES AS PART OF URBAN RE N EW AL PROJECTS SEc. 601. (a). Section ll0(b) of the Housing Act of 1949 is amended by inserting 'historic and architectural preser vation," after "lan d acquisition," . (b) Section ll0( c) (6) of such Act is amen ded by inserting " to promote historic and architectural preservation," after "det erioration,". ( c} Section 110 ( c) of such Act is further amended by st riking out "and" at the end of cl:rnse (8), and by striking ou t clause (9 ) and inser t ing in lieu thereof the following: " ( 9) relocation within or outside th e project ar ea of structu res which will be restored and maintained for arch itectur al or h istoric purposes; and " ( 10) . restoration of acquired p r oper ties of histor ic or architectural value." LOCAL GRANT- IN-AID CREDIT FOR RE LOCATION A ND RESTORATION OF HISTORIC ST RUCT U RES . SEc. 602. Claus~ (2) of section llO(d) of th e Housing Act of 1949 1s amended by striking out " clause (2) and clause (3) " and insert ino0 in lieu thereof "clauses (2) , (3) , (9) , and (10) " . GRA N TS T O NATIONA L T RU ST FOR HISTORIC PRESETIV ATION TO COVE R RRST OTIATIO N COSTS . SEc. 603- (_a ) T he Secl'eta ry of Ho~lSing and U rban Developmen t 1s au thorized ro make g rants to the Nat ional T r ust for H ist oric P reseryation, on suc~1 terms an d condit ions and in such a.mounts (not excMdmg $90,000 with re~pect to any one st rnctur~) as he de~ms ap p ropriate, to cover the costs mcurred by such Trust m renovatmg or restorin ostruct ures which it considers t o be of historic or architectural value and which it has accepted and will maintain ('af ter such renoYation or restorat ion ) fo r historic purposes. (b ) T here are author ized to be appropriated such sums as may be necessnry fo r th e grants to be mn.de under subsection (a ) . �DEMON STRATION CITIE S AND METROPOLITAN DE VE LOPMENT ACT 67 URBA N P LA NNL'iG GRANTS F OR SURVEY S OF HISTORIC STRUCTURES SEC. 604:. Section 701 of the Housing Act of 1954 is amended by adding at the end thereof the follo wing new subsection : " (h) In addition to the other grants authorized by this section, the Secretary is a uthorized to make grants to assist any city, other municipality, or county in m aking a survey of the structures and sites in such locality which are determined by its appropri ate authorities to be of historic or a rchitectural value. Any such survey shall be designed to identify the historic structures and s ites in the locality, determine the cost of th eir r eh abilitation or restora tion , and providl;l such other information as may be necessary or appropriate to serve as a foundation for a balanced an d effective prog ram of historic preservation in such locality . The asp ects of any- such survey which relate to the iden tification of historic and architectural values shaJl be conducted in a ccordan ce with criteria fo und by the Secretary to be comparable to t hose used in establishing the Nation al R egister ma intained by the S ecretar y of the I nterior under other provisions of law ; and the results .of each such sur vey shall be m ade available to the Secretary of t he Interior. A grant under this s~bse~t~on shall not exceed twot hirds of the cost of the survey for which 1t 1s made, and shall be made to the a{>pr opriate agen cy or e~tity sp ~cified in p aragraphs ( 1) through (9 ) of subsection (a ) or, 1f ~here 1s no such agency or entity which is qualified and will~ng t~ receive ~he g r_ant and provide for its utilization in accordance with this subsection, directly to the city, other municipality, or county involved. " GRANTS F OR HISTORIC P RESER VA TION Soo. 605. (a ) The heading of title VII of the Housing Act of 1961 is amended to read as foll ows : "T I TLE VII-OPEN -S PACE LAND, URBAN BE AUTIFICATION , AND HISTORIC PRESERVA TION" ( b) Sect io~ 701 of such Ac~ is an~ended l.,y redesig nating subsection (c) as subsection (d ), andby msert111gafter subsect10n (b) a new subsection as follows : " (c ) T he Con gress furth er find s tl!at there is a need for ! imel_y action to preserve an d ~estore areas, sites, and sti:u~tures ?f historic or a rch itectural value m order that these r ema mmg ev idences of our p ast.history and h eri tage sh all not_ be Jost or destroyed through t he . expansion and development of the Nn.t 1on's u~ban areas." (c ) Sec~ion ~0l(d ) of such _\.c t (as redes1gnated by subsertwn (b ) of this section) 1s a mended( 1) by in sert i!1g after " urban development,"_the !ollowing : " to assist in p reser vm g a reas and pr operties of lu stori c or arclutec,, . . . . t ural value,"; and (2 ) by strik ing out "and (2) and ms~rtwg rn. lieu t hereof "(2) acquir e, i ~1prove, and restore a r~,as, sites,.and structures of h istoric or arch itectur al va lne, and ( :-3) . ( d) Section 702 ( e) of such Act 1s a mended to read as follows : ·• ,1 ( e) T he Secretary sh alJ consult wit~ the ~ecr~tary of ~he !nterior on the gener al policies to be fo!lo wed m r evie w1~g apphcat!ons for r ants under t his title. To assist ~he S.ecretary m sucl_i re~iew, the §ecretary of the Interior :3hall furmsh hi~ (1) appr<?pnate m~orm~tion on the status of nat1_on al and statewide recreati<;m and .histori c preservation ,elanning as 1t affects the areas to be assisted with such g r ants, and (2) the cur~en~ listin~ of any _distri?ts, sites, b~ildings, structu res, and objects s1gmficant m Amerwan history, ar ch itecture, �68 DE MONSTRATION CITIE S AND M E TROPOLITAN DEVELOPMENT ACT archeology, ~nd culture which may be containe~ on a National Register maintam ed by the Secr etar y of th e In~ n or pursm_m t to ot~er provisions 0£ law. The Secretar y sh all p r ovide current m fo rmat10u to the Secretary 0£ the Interior from t ime to t ime on sig nificant program developments." (e) Section 706 of such A.ct is amended by striking out th e proviso. ( f) Section 708 of such Act is amended by inserting " (a ) " after "SEC. 708.'\ by inserting " (b) " before "The" in the second par agraph , and by aduing at the end ther eof a new subsection as follows : " ( c) Not 'i\-ithstanding any other pr ovision of this title, th e Secretary may use not to exceed $10,000,000 of th e sum authorized for contrac£s un der this title fo r the pur:pose of entering into contracts to make g rants in amounts not to exceed 90 per cent um of th e cost of activities which he determines h ave special value in developing and demonstrating new and improved methods and mater ials for use in carrying out t he purposes of t h is t itle." (g ) Title VII of such Act is amended by redesignating section 709 as section 71 0, and by adding after section 708 a new section as follows :

, GRANTS F OR H ISTOIH G PRF.S ER YATION

"SEC. 709. T he Secr etary is authori zed to enter int o contracts to make ~1.·ants to States and local public bodies to assist in the acquisition of ti tle to or other perma nen t in terests in areas, s ites, ,md structures of historic or ar chi tectur al value in urban areas, and in their restoration and improvement forJrnbli c use and ben efi t, in accor d ,vith the comprehensively planned evelopmen t of the locality. The amoun t of any such g rant shall not exceed 50 per cen tum of t he total cost, as approved by the Secretary, of the assisted activit ies. T he rema inder 0£ such cost shall be provided from n on -F eder al sources." (h ) Commencing three yea rs af ter the date of th e enactment of this Act, no g rant shall be made ( except pursuant t o a contract or comm itment entered into less than three years after such date) under sect.ion 709 of the Housing Act of 1961 or section 701 (h ) of t he Housing A ct of 1954, or under section 103 of the Housing Act of 1949 to the extent th,tt it is to be used for historic or arch itectu ral· p r eservat ion, except with r espect to d istr icts, sites, buil din ~, str__·uctures an d objects which the Secret ary of H ousing and U rban lJevelopment'fin cls meet criteria comparable to th ose used in establishing th e Ka,t iona 1 Register mainta ined by th e Secreta ry of the I n tel'ior pursu ant to other pr ovisions of law. TITLE VII-URBAN RENEWAL L OCAL GRA NTS-IN -AID . SEC: 701_. Secti?n 110 ( d) of th e Housing Act of 1049 is amended by m sertmg unmediately after the colon a.t the. encl of th e first proviso the follov,-i.ng: "Provuf,ed f u1·the1·, That an y_ ~ublicly owned facility, the con tructi,on of ,,-h1ch was be£un not ear~ier th_a~1 three years p rior to t he date of enactment of the lJemonstration C1t1es and Metropolitan D evelopment A ct of 1966, h all be deem ed to benefit an urban r enewal p roject or project s t o the extent of 25 per .centum of the total b~i:i,efits of s~cl~ facility, o_r $3,500,000, which ever is less, if such fac1h ty (A ) (1) 1s_ u_s~d, or is _t~ be u sed , by tl~e pu~lic predominantly for cultm:a l,. exh1b1ti~n , _or c1v1~ p urposes, or is a e1ty hall or a public safety bml clm~, or (11) is a facility, constructed or r eh abilitated by a public un iversity, which is or will be devoted to the t r eatment of physical or mental disabilities and illness or to medical research · (B) is located within , ad jacent to, or in t he immediate vicinity of su~h urban �DEMONSTRATION CITIES AND METROPOLI TAN DEVELOPMENT ACT 69 r enew~} P!'oject or p~·oj ects ; (C) is found to contribute materially to the _obJect1ves of th~ urban r ene~al p ~a~ or plans for such pr oject or proJects; and (D) 1s not otherwise eligible as a local grant-in-aid:". AIR RIGHTS SITES IN URBAN RENEWAL PROJ EQTS SEc. 702. (a) S ection 110 ( c ) ( 1) of the Housing Act of 1949 is amended by inserting in clause (1v) , between the word "income" and the colon immediately p receding t he first proviso, the followino- : " or if the area is found by the local public agency t o be unsuitable for u~ for low or moderate income housing, for ose for industrial development" . ( b) Section ll0 (c) (7) of such Act is amended by insertino- immediately before the semicolon the following:", or construction ~f foundations and plat forms necessary for · the provision of air rights sites for indust rial development". ADDITIONAL REQUIREMENTS F OR RE DEVELOPMENT OF U RBAN RENE WAL .ARE A SEc. 703. (a) Section 105 of th e Housing Act of 1949 is amended by ad ding at the end thereof th e following new subsection: ' " ( f ) The redevelopment of t he urban renewal ar ea, 1mless such redevelopment is for predomin an tly n onr esidential uses, will provide a substantial number of units of standard housing of low and moderate cost and result in marked p rogress in serving the poor and d isadvantaged people living in slum and blig~ted areas." (b) The amendment made by sub~ect10n (a ) sh_all apply only in the case of contracts for loans or capital grants which are made with respect to urban renewal projects undertaken pursuant to urban renewal plans approved after the date of the enactment of this Act. THREE-FOURTHS GRANTS FOR PROJECTS IN CERTAIN REDEVELOPMENT AREAS SEC. 704. Section 103(a) (2) (B) of the Housing Act of 1949 is amended by inserting after "to avoid hardship," the following : "01• at any time after such contract or contracts are entered into and prior to the time the final gTant payment has been made pursuant thereto,". EXPENDlTURt: S BY EDUCATIONAL INSTITUTIONS AND HOSPITALS SEC. 705. Section 112(a) of the Housing Act of 1949 is amended by inserting before the period at the ei:id thereof t.he following : " :_ P1·0vwed fwrther That no such ex{>endrture shall be deemed mehgible as a local gra~t-in-aid in c~nnect_1on with ~n ur?a_n ren_ewal proj_ect, to the extent tluit the expenditure _is otherwise ehgt?le, if the facilities, land, buildings, or s~ru~tures ~1th respect ~o ';,h1ch the expenditure is made are located ,v1thm one mile of the proJect . REQUIREMENT OF SEPARATE SEWER SYSTEMS IN REDEVELOPMENT OF URBAN RENEWAL AREA SEc. 706. Section 105 of the Housing Act of _1949 is amended by adding at the end thereof ( after the new subsect10n added by section 703 of this Act) the following ne~ subsection: "(g) Consideration has been given to development of a sewer system to serve the urban renewal area which will, to the maximum extent feasible, provide for effective control of storm and sanitary wastes." �70 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT TITLE ·VIII-RURAL HOUSING SEC. 801. Section 501 (a) of the Housing Act of 1949 is amended by striking out "previously occupied" wherever it appears. SEC. 802. Section 502(a) of the Housing Act of-1949i is amended by striking out "In cases of applicai;its who are elderly persons, the" and insetting in lieu therof"The". SEc. 803. Section 504 of the Housing Act of 1949 is amended by striking out "$1 000" and insertinO' in lieu thereof "$1,500". SEc. 804. (a) Section 515(a) of the Housing ,Act of 1M9 is amended by inserting after "income" the following: "or other persons and families of low income". (b) Section 515(d) (1) of such Act is amended by striking out "elderly persons or elderly families" and inserting in lieu thereof "occupants eligible under this section". . SEC. 805. (a) Subsections (a) and (b) of section 515 of the Housing Act of 1949 are each amended by striking out " rental housing" and inserting in lieu thereof " rental or cooperative housin~n. (b) Section 515 (b) of such Act is amended by inserting atter "families" the following : "or other persons and families of moderate income". (c) Section 515(d) (4) of such Act is amended by adding at the end thereof the following:· "Such fees and charges may include payments to qualified consult ing organizations or foundations which operate on a nonprofit basis and which render services or assistance to nonprofit corporations or consumer cooperatives who provide housing and related facilities." SEc. 806. Section 517 (a) ( 1) of the Housing Act of 1949 is amended( 1) by inserting "and" before " ( B) "; and (~) by striking out", and (C)" and all that follows and inserting in lieu thereof the following: "; but no loan under this pa.ragraph sh all be insured or made after October 1, 1969, except pursuant to a commitment entered into before that date; and". · SEC. 807. (a) Section 50l(a) of the Housing Act of 1!)49 is amended by inserting before the period at the end thereof the followin&:: ", and (4) to an .owner described in clause (1), (2), or (3) for rehnancing indebtedness which" (A) was incurred for an eligible purpose described in such clause, "(B) if not refinanced, is likely to result at an early date in loss of the applicant's necessary dwelling or essential farm service buildings, "(C) is not held or insured by the United States or any agency thereof, and "(D) was incurred prior to the enactment of this clause." (b) Section 501 ( c) of such Act is amended by inserting before the semicolon at the end of clause (1) the following:", or that he is the owner of a farm or other real estate in a rural area who needs refinancing of indebtedness described in clause ( 4) of subsection (a)". TITLE IX-URBAN INFORMATION AND TECHNICAL ASSISTANCE SERVICES PURPOSE SEc. 901. It is the purpose of tlus t itle to assist States to make available information and data on urban needs and assistance programs and activities, and to provide technical assistance, to small communities with respect to the solution of urban problems. �DEMONST RATION CITIES AND M E TROPOLITAN DEVELOPMENT ACT 71 GRANT AUTHORI TY SEc. 902. (a) The S ecretary is author ized to make grants to S tates to help finance programs to provide information and data on urban needs and assistance programs and activities, and to provide technical assistance, to small communities with r espect to the solution of local problems. Activities aided by such grants may include( 1) the assembly , correlation, and dissemination of urban

ehysical, social, and economic development information and data

for the pur pose of informing local g overnments of small communities, and inter es~ organ izations and individuals, of the availabili ty and status of Feder al, S tate, and local programs and other resources and data for the solution of urban problems; and (2) providing technical assistance with respect to the solution of urban problems to any small community requesting such assistance. (b) A program assisted under this section shall(1) specify the information and technical assistance act ivities to be carried on and j ustify the needs for the costs of such activities; and (2) represent substantially incr eased or improved activities on the part of the applicant Sta te agency. AMOUNT OF GRA N T S Ec. 903. (a) A g r ant under .~ is secti?n shall not exceed 50 per centum of the ?ost of the ac~ivities . carried on under an approved urban informat10n and techmcal assistance program. (b) No o-r ant shall be made under this title to assist in assemblin odata, or pfoviding inform ation, to be _used p~imarily in t~e day t~ day operations of State or local governmg bodies and agencies. COOPERATION AND COORDINATION SEC. 904. (a) Fe~e~al ~ep ar tme~ ts and a~en?ies shal_l cooperate with States in providrng mformatron to assist m carrymg out the purpose of this title. . . . . (b) In the administr atron of tins title, the Secretary shall seek to ensure the greatest practicable coor1ination of ur1:>a°: information and technical a.ssistance programs establrshed under this title. DEFINITIONS SEC. 905. As used in this title. . (1) "State" means any State of the U m ted States, ·the Commonwealth of Puerto R ico, the Virgin Islands, Guam, Amer ican Samoa, or an agency or mstr!"l?-entality designa;ted by the chief executive of any of t!'i-E: foregoJ.?g, . or a st:i,tewide agency or instrumentality of its political subdivis10ns designated by such chief executive. (2) "Secretary" means the Secretary of H ousing and U rban Development. (3) "Small communities" means communities having populations of less than one hundred thousand according to the most recent decennial census. �72 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMEN T ACT APPROPRIATIONS SEC. 906. There are authorized to be appropriated for the purpose of carrying out the provisions of this title not to exceed $2,500,000 for the fiscal year ending June 30, 1967, and not to exceed $5,000,000 for the fiscal year ending J~e 30, ~968. ApJ?ropriations authorized under this section shall remam available until expended. TITLE X-MISCELLANEOUS HOUSING FOR THE ELDERLY OR HANDICAPPED SEC. 1001. Sootion 105(b) of the Housing and Urban Development Act of 1965 is amended. ( 1) by inserting" ( 1) " after" (b) '~; (2) by striking out "Effective with respect to loans made on or after the date of the enactment of this Act, section" and inserting in lieu thereof " Section" ; and (3) by adding at the end thereof a new paragraph as follows: "(2) The interest rate provided by the amendment made in par agraph (1) shall be applicable (A) witJ:i respect t o any loan made on or after August 10, 1965, and (B) with resp ect to any loan made prior to such date if construction of the. housmg or related facilities to be assisted by such loan was not commenced prior to such date, and not completed prior to the filing of an ap plication for th e benefits of such interest rate." LOW-RENT HOUSING IN PRIVATE ACCOMMODATIONS-TERM OF LEASE SEc. 1002. Seetion 23 ( d) of the U nited States Housing Act of 1937 is amended by strikinf? out "thirty-six months" and inserting in lieu thereof "sixty months' . APPLICATION OF DAVIS-BACON ACT TO LOW-RENT HOUSING PROJECTS CONSISTING OF PRIVATELY BUILT HOUSING SEc. 1003. Section 16 (2) of the United States Housing Act of 1937 is amended by inser tin{f after "the development of the :project involved" the following : (including a project for the use of privately built housing in any case, other th an under the authority of section 23 of this Act, where the p ublic housing agency and the builder or sponsor enter mto an agreement for such use before construction or rehabilitation is commenced), and th at each such laborer or mechanic shall receive compensation at a r ate not less th an one and one-half times his basic rate of p ay f or all hours worked in any workweek in excess of eight hours in any workday or for ty hours in the workweek, as the case may be". ASSISTANCE FOR HOUSING IN ALASKA SEc. 1004. (a ) T he Secretary of Housin~ and Urban Developruent (her einafter referred to as the "Secretary') is authorized to make loans and grants t o the State of A laska, or any duly authorized ao-ency or instrumentality thereof, in accordance with a· statewide pro~ram prepared by such State, agency, or instr.u mentality, and approv~d by the Secretary, .to assist in the provision of housing s.nd related facilities for Alaska natives and other Alaska residents who are otherwise nnable to finance such housing and related facilities upon terms and conclif·ions which they can afford. The program shall (1) specify the �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 73 m~~_um and maximum standards for such housin~ and. related facilities (not to ~xceed an average of $7,500 per dwellmg umt); (2) to the extent feasible, encourage the proposed users of such housinoand related facilities to utilize mutual and self-help in the construe': tion thereof; and ( 3) provide experience, and encourage continued participation, in self-government and individual home ownership. (b) Grants under this section shall not exceed 75 J?er centum of the aggregate cost of the housing and related facilities to be constructed under an approved program. . _ ( c) There is authorized to be appropriated not to exceed $10,000,000 to carry out the purposes of this section. . FEDE RAL N ATIONAL MORTGAGE ASSOCIATION PARTICIPaTION IN FEDERAL HOU SING ADMIN ISTRATION-INSURED CONSTRUCTION FINANCING SEc. 1005. Section 305 of the National Housing Act is amended by adding at the end thereof the following new subsection : "(i) In any case where the Association makes a commitment to purchase under this section (1) a mortgage insured under section 213, (2) a mortgage insured under section 220, or ( 3) a mortgage insured w1der section 221 (d) (&) and executed by a cooperaJtive (including an investor -sponsor) , a limited dividend corporation, a private non-profit corporat ion or associa tion, or a mortgagor qualified under section 221( e), such commitment may provide for participation by the Association in the making of insured advances on the mortgage during construction. Such participation shall be limited to ·95 per centum of the amoun t of each of the advances involved, and the mortgagee providing the balance of such amount shall {>erform all necessary servicing and pr ocessing of such advances until the final insurance endorsement of the mortgage. The Secretary of Housing and Urban Development shall appr ove the reason ableness of the fee to be paid a participating mortgagee, taking int o account its services and the extent of it s par ticipation in the advances." . FEDERAL NA.TIONAL MORTGAGE ASSOCIATION SPECIA L ASSI ST A N CE FOR FINANCING WW-COST HOMES SEc. 1006. The Congress hereby finds th at the sharp decline in new home construction over the past year threatens to undercut our present high level of prosperity and employment as such declines h ave in the past; that the substanti'.11. reduction whi:ch has taken place h~ had its greatest impact on fannlles o! modest ~ come_ wh? are see~g to achieve the goal of homeownership ; that this declu:ie m homebmlding is due primarily to the_s~10rtage of mortgage financmg on ~ rms wh~ch moderate income famili es can _afford; and that. our national policy objectives in the field of · housmg and commumty development are thereby being thwart~d. The Congress theref?re expresses its intent that the special ass1stane:e !nnds m.a de avail~ble to the F ederal National Mortgage Association for the financmg of new low-cost homes by the Act of September 10, 1966 (~ub~ic L aw ~9- 5_56 ) , should be released immediately to halt the contmumg declme m the construction of new homes for _families of moderate income. FEDERAL NATIONAL MORTGAGE ASSOCIATION STANDB_Y COMMITMENTS SEc.1007. Section 304(a) (1) of the National Housing Act 1s amended by striking out the last sentence. �74 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT PLANNING GRANTS FOR RESEARCH ON STATE STATUTES AFFECTING LOCAL GOVERNMENTS SEc. 1008. Section 701 (b) of the Housing A ct of 1954 is amended by inserting before the period at the end thereof the following: " , and for o-rants to assist in the conduct of studies and research relat ing to need~d revisions in State statutes which create, govern, or control local governments and local governmental operations". PUBLIC FACILITY LOANS SEc. 1009. Section 202 of the Housing Amendments of 1955 is amended by adding at the end thereof a new subsection as follows : " ( f) The restrictions and limi_tations set for~~ in ~~bsection ( c). ~f this section shall not apply to assistance to mu111c1pahties, other political subdivisions and instrumentalities of one or more States, and Indian tribes, for specific projects for cultural cente~, including but not limited to, museums, art centers and galleries, and theaters and other physical facilities for the performing arts, which would be of cultural, educational, and informational value to the commw1it ies and areas where the centers would be located." APPLYING ADVANCES IN T ECH N OLOGY T O H OU SI N G AND URBAN DEVELOPMENT SEC. 1010. (a) To encourage and assist t he housing industry to continue to reduce the cost and improve the quality of housing by the application to home construction of advances in technology, and to encourage and assist the application of advances in technology to urban development activities, the ·secretar y of Housing and U rban Development (hereinafter referred to as the "Secretary") is directed to-, (1) conduct research and studies to test and demonstrate new and improved techniques and methods of applying advances in technology to housing construction, rehabilitation , and maintenance, and to urban development activities; and (2) encourage and promote the acceptance and application of new and improved techniques and methods of constr ucting, reh abilitating, and maintaining housing, and th e applicat ion of advances in technology to urban developmen t activities, by all segments of the housing industry, communities, indust r ies engaged in urba.n development activit ies, and the general public. (b) R esearch and studies conducted m1der this section sha,ll be designed to test and demonstrate the applicability to housing constr uction, rehabilitation, and maintenance, and urban development activities, of advances in technology relating to (1 ) d esign concepts,. (2) construction and reh abilit ation methods, (3) manufacturing processes, ( 4) materials and products, and ( 5) building components. (c) T he Secret a ry is author ized to carry out the research an d studies authorized by this section eith er directly or by contract with public or private bodi es or agencies, or by working agreement with departments and agencies of the F ederal Government, as he m11,y determine to be desir able. Contracts may be made by the Secret ary for resea rch and studies auth orized by this section for work to continue not more th an two years from th e date of any such contract. ( d) T here are authorized t o be appropriated to carry out th e p rovisions of this section not to exceed $5,000,000 for the fiscal year ending ,June 30, 1967, and not to exceed $10,000,000 for the fiscal year ending J une 30, 1968. All fun ds so appropriated shall remain available until expend64. �DEMONSTRATION CITI ES AND METROP OLITAN DEVE LOPMENT ACT 75 ( e ) Nothing contai?ed in this section shall lim it any authority of the Secretary under title III of the Housino- A ct of 1948 section 602 of the Housing Act of 1956, or any other pr~vision of la~. URBAN ENVIRONMENTAL STUDIES SEc. 1011. (a ) The Congress finds that, with the ever-increasinoconcentration of the Nation 's population in urban centers there ha~ occurred a mar ked change in the environmental conditi~ns under which most people live 3:nd _work ; tha~ such chan~e is characterized by the progressive subst1tut10n of a high lJ comp lex, man-contrived environmen t for an env~romne1;t conditioned primari ly by nature; that the beneficent or malignant mfluence of en vironment on all livinocreatures is well.r ecognized; and that much ~ore know~edge is urgently needed concermng the effect on h uman bem gs of highly urbanized surroundings. It is the purpose of this section to authorize a comprehensive p rogram of resear ch, studies, surveys, and analyses to improve understanding of the environmental condi tions necessary for the wellbeing of an urban society, and for the intelligent plannmg and development of via ble urban centers. (b) In or der to carry ou t the purpose of this section, the Secretary is authorized and directed to( 1) conduct studies, surveys, research, and an alyses with respect to the ecolog ical factors involved in urban livino-; (2) document and define u rban environmenta1 factors which need to be controlled or elimina ted for the well-being of urban life; . . . . (3) est ablish a system of _collectmg and rece1vmg in forma" t ion and data on urban ecological research and evaluations which are in process or are being planned by public or private agencies, or individuals; ( 4) eval uate _and disse!lllnate inf~rmation p er_tai~ing to urban ecology to p ublic and p rivate agencies or_orgamzat10ns, or individuals, in the form of reports or other wise; ( 5) initiate and ut ilize urban ecological information in urban development projects initiated or assisted by the Department of Housino- and Urban Development; and ( 6) ~tablish through in ter age~cy consultation the coordinated utilization of urban ecological information in projects undertaken or assisted by t he F eder al Government which affect the o-r,o\\·th or development of urban areas. ( c) ( 1 The Secretar:r is a uthorized to establish such. ad visoi:y com mittees as he deems desir'.1-ble for the p~1rpose of renderin g adv ice and submittino- recommendatwns for carr y mg ont the purpose 9f this section. Such advisory committees shall rend·e r such advice to the Secretary upon his req~est and m'.1-y subm_it _s? c~ recommendations to the Secretary at any time on then' own m1tiatlve._ The Secretary may designate employees of the _Department of H ousmg and U rban Development to assist such committees. (2) Members of such advi~ory committees shall receive not ~o exceed $100 per day when engaged m t he actual per~ormance of their duties, in addition to reimbursement for travel, subsistence, and other necessary expenses incurred by them in the performance of their duties. (d) The Secretary is a'llthorized to carry out the studies, surveys, research, and analyses auth~rized by ;his section e_ither dfrectly or by contract with public or private bod1e_s or agencies, or by w01:kin g agreement with departments ai:id agencies of the Federal Government, as he may determine to be de~irable. 9ontracts n:iay be made by the Secretary for work under this subsect10n to contmue not more than two years from the date of any such contract. f �76 DEMONSTRATION CITIES AND M ETROPOLITAN DEVELOPMENT ACT (e) There are authorized to be appropriated such sums as may be necessary to carry out ~he pr?visions ~f t his section. A ll fund_s so appropriated shall remam available unt il expended wh en so provided in appropriation Acts.

i\:lORTGAGE RELIEF FOR CERTAI N llOl\IEOWKERS

SEC. 1012. That part of section· 107 of the Housing and U rban D evelopment Act of 1965 which precedes subsection (f) is amended to read as follows : "MORTGAGE RELIEF FOR CERTAI N H OMEOWNERS " SEC. 107. (a) For' the purposes of this section" (1) The term 'mortgage' means a mortgage which (A) is insured under the National H ousing .A.et, or (B ) secures a home loan guar anteed or insured under the Servicemen's Readjustment Act of 1944 or ch apter 37 of t itle 38, United States Code. " (2) The term 'F eder al mor tgage agency' means-"(A) the S ecretary of Housing and U r ban Development when used in connection with mortgages insured under the National H ousing A ct, and "(B) th e Admmistrator of Veterans' Affairs when used in connection with mortgages securing home loans guaranteed or insured under the Servicemen's Readjustment Act of 1944 or chapter 37 of t itle 38, U nited States Code. "(3) The term 'distressed mor tgagor' means an individual who"(A) was employed by the Federal Governmen t at, or was assigned as a ser viceman to, a military base or other Feder al installation and wh ose employment or service at such base or installation was terminated subsequent t o November 1, 1964, as the result of the closing (in whole or in par t) or such base or installation ; and "(B) is the owner -occupant of a dwellino- situated at or n ea.r such base or installation and upon "i1ich t here is a mortrrage secur ing a loan which is in default ,because of th e inabifity of such individual to make payments due tmder such mortgage. · . "(b ) ( 1) A ny distressed mortgagor, for the purpose of avoidino:foreclosure of his mortgage, may apply to the apl?ropriate Federa~ mortgage agency for a determination th at suspension of his obligation to make payments due under such mor tgage during a temporary p eriod is necessary in or der to avoid such foreclosure. "(2) Upon receipt of an application made under this subsection by a distressed mortgagor, the F ederal mor tgage agency sh all issue to >'Uch mortgagor a cer tificate of moratorium if it determines, after consultation with the interested mor tgagee, th at such action is necessar y to avoid foreclosure. "( 3) Prior to the issuance to any distressed mor t.gagor of a certificate of moratorium under paragraph (2) , the F ederal mo_rtgage agency, the mortgagor, and the mortga gee sh all enter into a binding agreement under which-:" (A) the mortgagor will be required to mak e payments to such agency, after the expiration of such cer t ificate, in an aggregate amotmt equal to the amotmt paid by such agency on beha.lf of. uch mortgagor as provided in subsection ( c), together with interest thereon at a rate not to esrf'ed the rate provided in the mortgage : the manner and time in which such payments sh all be made' to be �DEM ONSTRATION CITIES Al""fD METROPOLITAN DEVELOPMENT ACT 77 1ltite m1ined l,_y t lie F ede ra l 11101tgaµ:e agency h1l\· i11g due reu-anl for the purposes ::;ought to be achieved by this secti"on · nnd"' _·' ( B ) the F edera l modgage agency wi ll be subrogated tor.he nghts of th~ mortgag~e to ~he extent of paymen ts made pnrsrnmr. t.o such certificate, " ·h1ch n gh t.s, however, shall be subjec:t. to the prior righ t of the mortgagee to receive the full amount pn.yable under the• mortgage. · _ "· (4 ) Any certifica te of moratorium issued under this subsection

hall expire on whichever of the following dates is the earliest"(A ) t wo yea rs from the date on wh ich such cer tificate was

issued ; "( H) t hirty days after the date on 1Yh ich the n10rt<',to'0r o-i ,·es notice in wr_it ing _to t~e F edernl mortgage agency that Ife is"'able ro resume his obligat10n to make payments due unde1· h is mortgage; or " ( C ) thirty _d ays after the elate on which the Federal morto-age agency determmes that the mortgagor to whom such cert ificate was issued has ceased to be a distressed mortgagor as defined in subsection (a) (3 ) . " ( c) ( 1) wrhenernr a F edera I mortgage a~ency issues a certificate of morator ium to a ny dist ressed mortgagor witn respect to any mortgao-e i t sh all transmit to the mortgagee a copy of such certificate, togethe,: with a notice stating that, while such cer tificate.is in effect, such ao-ency will assume the obligation of such mortgagor to ma.ke payment~ due under the mortgage. "(2) P ayments made by any F ederal mortgage agency pursuant to a certificate of moratorium issued under this section ,nth respect to the mortgage of any distressed mortgagor niay include, in addition to the payments referred to in paragraph (1), an amount equal to the unpaid payments under such mortgage p rior to the issuance of such certificate, plus a reas~nable allowance f ?r foreclo_sur~ costs actually paid by the mortgagee 1f a f_oreclosu_re act10n was dismissed as a result of the issuance of a moratorm m certificate. Payments by the F ederal morto-age agency may also include payments of taxes and insurance premiums on the mortgaged p roperty as deemed necessary when these items are not provided for through payments to a tax and insurance account held by the interested mortgagee. "(3) While any certificate of moratorium issu~d u nder th is section is in effect with respect to the mortgage of any distressed mortgagor, no further payments d_ue under the mortga_ge sh all be required of such mortgagor, and no act10n (legal or otherwise) shall be taken or maintained by the mortgagee t<? enforce or collect such payme!1ts. Upon the expiration of such certificate, the mortgagor shall agam be liable for the payment of all amounts due under the mortgage m accordance with its terms. " ( 4) Each Federal mortgage agency shall give p rompt no~ice in writing to the interested mo_rtgagor and n:ortgagee o_f the ~xp1ration of any certificate of moratormm issue~ by it under tp.1s sect10n. " ( d) The Federal mortg~ge agencies are authorized to issue such individual and joint regula~10ns as may ~e ne?essary to carry out this c:ection and to insure the umform admm1strat10n thereof. - " ( e) There shall be in the Treasury (1) a fu nd which shall be available to the Secretary of Housi~ and U r_b an Developm~nt for the p urpose of extending financial al'.'s1stance lil behalf ~f d1stre~s~d mortgagors as pi·ovided in subse~tion _( c) and for_paymg adrrumstrative expenses incurred in connection wit~ ~uch assistance, and, (2) ~ fund which shaU be available to the Admrn1strator of Veterans Affairs for the same purpose, except administrative expenses. The capital of each �78 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT such fund shall consist of such sums as ma-y, from time to time, be

tppropriated thereto, and any ~urns S? _appropriated shall remain

available until expended. Receipts ansmg from the programs of assist ance under subsection (c) shall be credited to .the fu11d from which such assistance was extended. Moneys in. either of such funds not needed for current operations, as determined by the Secretary of Housina- and Urban Development, or the Administrator of Veterans' Affairs O as the case may be, shall be invested in bonds or other obligat.ions of the United Stat1;1s, or paid into the Treasury as miscellaneous receipts." ACQUISITION OF CERTAIN PROPERTIES SITUATED AT OR NEAR MILITARY BASES WHICH HAVE BEEN ORDERED TO BE CLOSED SEc. 1013. (a) Notwithstanding any other provision of law, the Secretary of Defense is authorized to acquire title to, hold, man age, and dispose of, or, in lieu thereof, to reimburse for certain losses upon private sale of, or foreclosure against, any property improved with a one- or two-family dwelling which is situated at or near a military base or installation which the Department of Defense has, subsequent to November 1, 1964, ordered to be closed in whole or in par t, if he determines( 1) that the owner of such proper ty is, or has been, a F ederal employee employed at or in connection with such base or installation ( other than a temporary employee serving under a time limitation) or a serviceman assigned thereto; (2) that the closing of such base or installation, in whole or in part, has required or will require the termination of sucl1 owner's employment or ser vice at or in connection with such base or installation; and (3) that as the result of the act ual or pending closing of such base or installation, in whole or in par t, there is no present market for the sale of such property upon reason able terms and conditions. (b) In order to be eligible for the benefits of this section such employees or military personnel must be or have been( 1) assigned to or employed at or in connection with the installation or ad ivity at the time of public announ cement of the closu re action, · (2) transferred from such install ation or activity, or terminated as employees as a result of reduction -in-force, within six months prior to public announcement of the closure action, or (3) transfer red from the installation or activity on an overseas tour unaccompanied by dependents ,vithin fifteen months prior to public announcement of the closure action: P rovided, That, at the time of p ublic announcement of the closure action, or at the time of transfer or termination as set forth above, such personnel or employees must(~) .have been the owner -occupant of ~he dwelling, or (u) have vacated the own ed dwellmg as a result of beinoordered into on-p ost housing dur ing a six-month period prior t~ the closure announcement : P ?'Ovuled fii,rthe1·, T h at as a consequence of such closure such employees or personnel must( i) be required to relocate because of military transfer or acceptance of employment beyond a normal commutino- distance fro1? the dwelling for which com1 ensation is sought, 01';' ( n) be unemployed, not as a matter of personal choice and able to demonstrate such financial hardship that they are ~able to meet their mortgage payments and related expenses. �DEMONSTRATIQ_N CITIES AND METROPOLITAN DEVELOPMENT ACT 79 ( c) Such persons as the Secretary of Defense may determine to be eligible under the criteria set forth above shall elect either (1) to receive a cash ~aym~nt as ~ompensati?n for losses which may be or have been sustamed m a pnvate sale, m an amount not to exceed the difference between (A) 95 per centum of the fair mar~et value of their property (as such value is determined by the Secretary of Defense) prior to public announcement of intention to close all or part of the military base or installation and (B) the fair market value of such property ( as such value is so determined) at the time of the sale, or (2) to receive, as purchase price for their property, an amount not to exceed 90 per centum of prior · fair market value as such value is determined by the Secretary of Defense, or the amount of the outstanding mortgages. Cash p ayment as compensation for losses sustained in a private sale shall not be made in any case in which t he property is encumbered by a mortgage loan guaranteed, insured, or held by a Federal agency unless such mortgage loan is paid, assumed by a purchaser satisfactory to such Federal agency, or otherwise fully satisfied.at or prior to the time such cash payment is made. Except in cases of payment as compensation for losses, in the event of foreclosure by mortgagees commenced on or after public announcement of intention to close all or part of the military base or installation and prior to t he one hundred and twentieth day after the_enactment of this Act, the Secretary of Defense may reimburse or pay on account of eligible persons such sums as may be paid or be otherwise due and owing by such persons as the result of such foreclosure, including ( wit hout limiting the generality of the foregoing) direct costs of judicial foreclosure, expenses and liabilities enforceable according to the terms of their mortgages or promissory notes and the amount of debts, if any, established against such persons b,; a Federal agency in the case of loans made, guaranteed,, or insured by -such agency following liquidation of the security for such loans. (d) There sh all be in the Treasury a fund which shall be available to t he Secretary of D efense for the p_u rpose of extending the financial assistance p rovided above. The cap ital of such fund shall consist of such sums as may, from t ime to time, be appropriated thereto, and shall consist also of receipts from the management, rental, or sale of properties acqu ire<l under this section, which receipts shall be credited t o the f und and shall be available, together with funds appropriated therefor, fo r purchase or reim~n~rse1_nent purp_oses ~s provided _a_bove, as well as to defray expenses ar1smg m connection with the acqu1s1tion management, and· disposal of such 'p roperties, inclu<ling_ paymen t of p rincipal interest, a nd expenses of mor tg as-es or other mdebtedness thereon, ~nd includ ing t he cos~ of sta~ serv1ces and cont ract ser vices, costs of insuran ce, and other mdemm ty. Any !?art of such receipts not required for· s~1ch expenses s_hall be ?Overed mto t)1e Tr~asury as miscellaneous receipts. P r operties acqm red under this sect10n shall be conveyed to, and acquired in the name of, the U!1ited S tates. The Secretary of Defense sh all have the po,Yer to deal ~'"1th, rent, r~novate, and dispose of, w!1ether by ~ Jes for cash or credit or othel'Wlse, any properties so ac91!1~ed: Provided, however, That ~o cont ract for acqmsition, or acqms1t1011_, sh all ~e dee!Ile? to constitute .a. cont: act for or acquisition of farrul:y housmg m:u ts m sup_()ort of m1htary mstallations or activities withm the m~ruung of sec_t10n 406(a) of the Act of August 30, 1957 ( 42 U .S .C. 15941) t nor shall 1t ~ deemed a ~ransaction within the contemplation of sect10n 2662 of title 10, U mted States Cote) Pay~ents from the fund creat~~ by this ~e?t}on may be made in lieu of taxes to any S~ate o: po!1t1cal subd1v1s1on thereof, ,yith respect to real property, mcludmg impr ovements thereon, acqmred �80 DEMONSTRATION CITIES AND METROP OLITAN DEVELOPMENT ACT and held under this section. The amount so paid for any year upon such property shall not exceed the ta.xes which would be p aid to the State or subdivision, as the case may be, upon such p roper ty if it were not exempt from taxation, and sh all reflect such allowance as may be considered appropriate for exp enditures, if any, by the Government for streets, utilities, or oth er public services to serve such · proper ty. (f) The title to any proper ty acquired under this section, the eligibility for, an~ the am<:m_nts of, ca~h p a)'.able, and the administration of the precedmg provis10ns ?f. tlus sect1011, shall confo3:n:i to such requirements, and shall be admimstered under such condit10ns and reo-ulations, as the Secretary of Defense may prescribe. S uch regulations shall also prescr ibe the ten ns and conditions under wh ich payments may be made and instruments accepted under this section, and all the determinations and . decisions ma~e pursuan t to such regulations by the Secretary o'f Defense regardmg such p aymen ts and conveyances and the terms and condit ions under which they are approved or disapproved, shall be final and conclusive and sh all not be sub ject to judic.ial review. (g) The Secretary of Defense is author ized t o enter into such agreement with the Secretary of Housing and U rban Development -as may be appropriate for the purposes of econ omy and efficiency of administration of this section. Such agreement may provide auth ority to the Secretary of Housing and U rban Development and his designee to make any or all of the determinations and take any or all of the actions which the Secretary of D efense is authorized t o undertake pursuant to the precedin& provisions of this section. Any such determinations shall be ent itlect to finality t o the same extent as if made by the Secretary of Defense, and, in event the Secretaries of D efense and Housing and U r ban Development so elect, the fund established _pursuant t o subsection ( d) of this section shall be available to the Secretary of H ousing and Urban Development to carry out the purposes thereof. (h) Section 223 (a ) (8 ) of the National Housing Act is amended to read as follows : " (8) executed in connection with the sale by th e Government of any housing acquired pursuant to section 1013 of the Demonstration Cities and Metr opolitan Development Act of 1966." (i) No funds may be appropriated for the acquisition of any proper ty under author ity of this section unless such funds have been specifically author ized for such purpose in a military construction authorization act, and no moneys in the fund created pursuant to subsection ( d) of this section may be expended for any purpose except as may be provided in appropriation Acts. (j) Section 108 of the Housing and U r ban Development Act of 1965 is repealed. COLLEGE HOUSING SEc. 1014. (a) Section 404 (b) (4) of the Housing Act of 1950 is ~me_nde? bv strik ing out "public" immediately before "educational 1nstltut10n. ' (b) Section 401 ( d ) of such Act is amended by insertino- before the period at _the end ~hereof t~e following: "and, n~twithstanding the first proviso of this subsection the amount of this annual increase which is not ut i~ized for_ l_o~ns for hospitals 1!1a7 be utilized for loans for other educat10nal facilities, as defined herem' . �DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT 81 STUDY CONCERNING RELIEF OF HOMEOWNERS IN PROXI MITY TO AIRPORTS SEc. 1015. Section 1113 of the Housing and Urban Development Act of 1965 is amended( 1) by inserting·" (a )" after "SEc. 1113." ; (2) by striking out "one year after the date of the enactment of this Act" and inserting in lieu thereof "six months after the date of the enactment of the Demonstration Cities and Metropolitan Development Act of 1966"; and · (3) by addino- at the end thereof the following new subsection : "(b) There is authorized to be appropriated the sum of $100,000 to carry outsubs~tion (a)." QUARTERS AND FACILITIES FOR FEDERAL HOME LOAN BANKS AND THE FEDERAL HOME LOAN BANK BO.\RD SEc. 1016. (a) The second sentence of section 12 of the Federal Home Loan Bank Act (12 U .S.C. 1432) is amended by striking out "but no bank building shall be bought or erected to house any such bank, nor shall any such bank make any lease" and inserting in lieu thereof "but, except with the prior approval of the board, no bank building shall be bought or erected to house any such bank, or leased by such bank under any lease". (b) Section 18 of such Act (12 U.S.C. 1438 ) is amended( 1) by adding at the end of subsection (b) the following new sentence: "Such assessments may include such amounts as the board may deem advisable for carrying out the provisions of subsection ( c) of this section."; and (2) by adding at the end thereof the following new subsection : " ( c) ( 1) The board, utilizing the services of the Administrator of General Services (hereinafter referred to as the 'Administrator '), and subject to any limitation hereon which may hereafter be imposed in appropriation Acts, is hereby authorized· "(A) to acquire, in the name of the_United States, real property in the District of Columbia, for the purposes set forth in this subsection; "(B) to construct, develop, furnish, and equip such buildings thereon and such faci lities as in its judgment may be appropriate t.o provide, to such extent as the board may deem advisable, suitable and adequate quarters and facilities for the board and the agencies under its administration or supervision; " ( C) to enlarge, remodel, or reconstruct any of the same; and "(D) to make or enter into contracts for a,ny of the forngoing . "(2) The boa,rd may require of the respective banks, and they shaU make to the board, such advances of funds for the purposes set out in paragraph ( 1) as in the sole judgment of the board may from time to time be. advisable. Surh advances shall be in addition to the assessments authorized in subsection (b) and shall be apportioned by the board among the banks in proportion to the total assets of the respective banks, determined in such manner and as of such times as the hoard may prescribe. Each such advance sha]l bear interest at the rate of 4½ per centum per annum from the date of the advance and shall be repaid by the board in such installments and over such period, not longer than twenty-five years from the making of the advance, as the board may determine. Payments of interest and principal upon such advances shall be made from receipts of the board or from other sources which may from time to time be available to the board. The obligation of the board to make any such payment shall not be �82 DEMONSTRATION CITIES AND M ETROPOLITAN DEVELOPMENT ACT reg11 rded as 1t11 obligntio11 of the ·c11ite<l :-,rates. T o ,;u d1 exteut as the board may preserihe any snch obligation shall be regarded · as ,t ]eo-al in rnst me11t for the purposes of subsections ( g ) and (h) of sect io11 1.f'a11d fort he purposes of sect ion 16. " (3) The plans and designs for such build ings and faeilit ies and for any such enlargement, remodeling, or reconstruction sh all, to such extent. as the ehairman of. the board may request , be subject to his apprornl. " ( 4) Upon the making of a-rrangements mutually ag reeable to t he board mid the Administrator, which arrangements may be modified from t ime to time by mutual ,tgrooment between them and ma.y include but shall not be limited to the making of pay ments by the boar d and such agencies ·to the A d ministrator and by t.he Administ~·a-t?r to the board, t he custody, management., a.n d contr ol of such biuldmgs an d f acilities and of sueh real property shall be vested in the A dmin istr-a.tor in accordance therewith. U ntil t.he making of such arrangements such custody, ma nagement., and cont rol, including the assign ment and allotment and the reassignment and reallotmen t of building and other space, shall be vested in the board. " (5) Any proceeds (including ad vances ) received by the board in connect.ion with this subsection, and any proceeds from the sale or other disposit ion of real or other proper ty acquired by t he board under t.his subsect.ion, sha]I be considered as receipts of the boa.rd, and obligations and expend itures of the board and such agencies in connect10n with this subsection sh all not be considered as administrative expenses. As used in this subsection, t he term 'property' sh all include interests in p roperty. "(6) 1V'ith respect to its funct ions under this-subsect ion the board shall (A) annually prepare an d submit. a budget prog ram as p roYided in title I of the Govemment Corporation Cont rol Act with regard to wholly o,•n1ed Government. cor porations, and for purp oses of this sentence, the ter ms ' wholly owned Government corporations' and 'Government cor porations', wherever used in such title, shall include the boar d, and (B) maintain an integral set of accounts which shall be audited annually by the General A ccounting Office in accordance with the principles and procedures apJ?licable to commerc-ial eorpor ate transactions as provided in· such title, and no ot.h er aud it, settlement, or adjustment. shall be · required with respect to t ransactions under this subsection or with respect to claims, demands, or accounts by or against any person arising thereunder. T he first budget p rogram shall be for the firnt full fiscal year beginning on or after the date of the en actment of th.is subsection, and the first audit shall be for the remainder of the fiscal year in which this subsection is enact~d . E xce:pt as otherwise p rovided in t his subsection or by th e boar d, th e provisions of this subsection and the functions thereby or thereun der subsist ing sh all be applicable and exercisable notwithstanding and without regard to the Act of June 20, 1.938 (D .C. Code, secs. 5-41.3-5-428), except t h at the proviso of sect.ion 16 ther eof shall apply to any building constructed under this subsection, and section 306 of the Act of J uJy 30, 1947 (61. S tat. 584) , or any other provision of l aw relating to the construction, alterat ion , repair, or furnishing of public or other buildings or structures or the obtaining of sites therefor, but any person or body in whom any such function is vested may provide for delegation or redelegation of t he exercise of such function. " (7) No obligation sh all be incurred and no expenditure, except in liquidation of obligation , shall be m ade p ursuant to the first two subp aragr aphs of parngraph (1) of this subsection if the tot.al amount of all obligations incurred pursuant thereto would thereupon exceed �DEMONSTRATION CIT IES AND l\tIETROPOLITAN DEVELOP MENT ACT 83 $13,200,000, or such greater amount as may be p rovided in an appr opriation A ct or other law." SMALL BUSINESS ACT SEc. 1017. P a ragraph (1) of section S(b) of the Small B usiness A ct is amended by inserting " (A )" after "(1) ", by inserting "and" after "Administra tion; ", and by adding at the end thereof a new subparagraph as follo ws: "(B ) to allow an individual or group of persons cooperating with it in furt herance of the purposes of subparagraph (A) to make such use of its office f acilities and related materials and services as it deems appropriate;". USE OF CERT AL....- LANDS F OR CIVIL DEFEN SE PURPOSES Sro. 1018. Section 2 of the Act entitled "An Act to provide for the conveyance of a t ract of land in Prince Georges County, Maryland, to the State of Maryland for use as a site for a National Guard Armory and for t raining the National Guard or for other military purposes", approved August 10, 1949 (63 S tat. 592) , is amended by striking out "The land" and inserting in lieu thereof "( a) E xcept as provided in subsection (b) of this section , the land" and by addi ng at the end thereof th e follo wing new subsection : " (b) The Secretary of Housing and Urban Development shall execute t he necessary instrument or instruments to provide that a certain portion o"! Ian~, not to exce~ two ac1;es, on the easterly side of t he land described m the first sect10n of this Act, as more p articula rly deter mined and designated by the Secretary of the Army, may be used for civil defense or other emer gency preparedness purposes or the p urposes stated in subsection (a) and that such use shall not cause the rever ter clause set fo r th herein to become operable." MORT GAGE INSURANCE FOR L A ND DEVELOPMEN'l'--CLARIFYING AMENDMEN TS SEc. 1019. Section lO0l(d) of the National H ousing Act is amended(1) by str iking out "sewerage ~sposal installations," and inser tin u in lieu thereof "sewage disposal installations, steain, gas and electric lines and installations,"; (2) by striking out the se~ colon after "or ~ommon ·use", and inserting in lieu th ereof a per10d and the followmg new sentence : "Related uses may include industrial uses, with sites for such uses to be in p r op er proportioi. to the size and scope of the development.";_ . . . . (3) by str ikmg out "but such term " and msertmg m h eu thereof : "The term impr ovements"; and ( 4) by inserting af ter "sewage disposal installation," in clause (1) the following : "or a steam, gas, or electric line or install ation,". MISCELLANEOUS AND TECHNI CAL AMENDMENT S SEC. 1020. (a) Section 106(d) of the H ousing Act of 1949 is repealed. . . . (b) Section 227(a) of the Na~10nal Hous1;1lg Ac~ 1s af!len~ed _by striking out "subsection (b) (2)" m clause (v1) and msertmg m h eu thereof "subsection (b) ". �84 DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT ( c) The last sentence of section a05 ( e) of the N ationa.l Housing Act is amended by striking out "supplementing" and inserting in lieu thereof "supplementary". ( d) Section 308 of the National Housing Act is amended by striking out" (a)". (e) Section 512 of the National Housing Act is amended by striking out "or IX" and inserting in lieu th~reof "IX, X, or XI". (f) Section lO0l(c) of the National Housino- Act is amended by . strikmg out "'mortgage',: and inserting in . lieu thereof "'morto-agee' ". b (g) Section 1 of the National Housing Act is amended by striking out 'and X" wherever it appears and inserting in lieu thereof "X, and XI". · · (h) Section 102(h) of the Housing Amendments of 1955 is amended by striking out "section 213 of the National Housing Act, as amended, the Commissioner" and inserting in lieu thereof "sect.ion 213 of the National Housing Act, section 221 ( d) ( 3) of the National Housing Act, ·and section 101 of the Housing and Urban Development A ct of 1965 (insofar as the provisions of such sections relate to cooperative housing), t he Secretary of Housing and l .rban Development", and by striking out "such section" ea ch place it appears and inserting in lieu thereof "such sections". 0 �