decent, safe, and sanitary dwellings for their use. The term "families" includes families consisting of a single person in the case of elderly families and displaced families, and includes the remaining member of a tenant family. The term "elderly families" means families whose heads (or their spouses), or whose sole members, have attained the age at which an individual may elect to receive an old-age benefit under title II of the Social Security Act, or are under a disability as defined in section 223 of that Act, or are handicapped within the meaning of section 202 of the Housing Act of 1959. The term "displaced families" means families displaced by urban renewal or other governmental action, or families whose present or former dwellings are situated in areas determined by the Small Business Administration, subsequent to April 1, 1965, to have been affected by a natural disaster, and which have been extensively damaged or destroyed as the result of such disaster. The term "large families" means families which include four or more minors. The term "families of unusually low income" means families with incomes below the income level established by the public housing agency, as approved by the Authority, who could not be housed without the additional subsidy authorized under section 10(a).

1

(3) The term "slum" means any area where dwellings predominate which, by reason of dilapidation, overcrowding, faulty arrangement or design, lack of ventilation, light or sanitation facilities, or any combination of these factors, are detrimental to safety, health, or morals. (4) The term "slum clearance" means the demolition and removal of buildings from any slum area.

(5) The term "development" means any or all undertakings necessary for planning, land acquisition, demolition, construction, or equipment, in connection with a low-rent housing project. The term "development cost" shall comprise the costs incurred by a public housing agency in such undertakings and their necessary financing (including the payment of carrying charges, but not beyond the point of physical completion), and in otherwise carrying out the development of such project. Construction 2 activity in connection with a low-rent housing project may be confined to the reconstruction, remodeling, or repair of existing buildings. In cases where the public housing agency is also the local public agency for the purposes of title I of the Housing Act of 1949, or in cases where the public housing agency and the local public agency for purposes of such title I operate under a combined central administrative office staff, an administration building included in a low-rent housing project to provide central administrative office facilities may also include sufficient facilities for the administration of the 5 functions of such local public agency, and in such case, the Authority shall require that an economic rent shall be charged for the facilities in such building which are used for the administration of the 5 functions of such local public agency, and shall

1 Sec. 209. Housing and Urban Development Act of 1968, Public Law 90-448, approved August 1, 1968, 82 Stat. 476, 595, added this sentence.

2 This sentence added by sec. 307, Housing Act of 1957, Public Law 85-104, approved July 12, 1957, 71 Stat. 294, 301.

3 Title I of the Housing Act of 1949, as amended, authorizes the urban renewal program. Sec. 502 (1), Housing Act of 1959, Public Law 86-372, approved September 23, 1959, 73 Stat. 654, 680, inserted ", or in cases where the public housing agency and the local public agency for purposes of such title I operate under a combined central administrative office staff,".

Sec. 592(2), Housing Act of 1959, Public Law 86-372, approved September 23, 1959, 72 Stat. 654, 680, substituted "the functions of" for "its functions as".

be paid from funds derived from sources other than the low-rent housing projects of such public housing agency.

(6) The term "administration" means any or all undertakings necessary for management, operation, maintenance, or financing in connection with a low-rent housing or slum-clearance project, subsequent to physical completion. The term also means the financing of tenant programs and services for families residing in low-rent housing projects, particularly where there is maximum feasible participation of the tenants in the development and operation of such tenant programs and services. As used in this paragraph, the term "tenant programs and services" includes the development and maintenance of tenant organizations which participate in the management of low-rent housing projects; the training of tenants to manage and operate such projects and the utilization of their services in project management and operation; counseling on household management, housekeeping, budgeting, money management, child care, and similar matters; advice as to resources for job training and placement, education, welfare, health, and other community services; services which are directly related to meeting tenant needs and providing a wholesome living environment; and referral to appropriate agencies when necessary for the provision of such services. To the maximum extent available and appropriate, existing public and private agencies in the community shall be used for the provision of such services.

(7) The term "Federal project" means any project owned or administered by the Authority.

(8) The term "acquisition cost" means the amount prudently required to be expended by a public housing agency in acquiring a lowrent housing or slum-clearance project.

(9) The term "non-dwelling facilities" shall include site development improvements and facilities located outside building walls (including streets, sidewalks, and sanitary, utility, and other facilities).

(10) The term "going Federal rate" means the annual rate of interest (or, if there shall be two or more such rates of interest, the highest thereof) specified in the most recently issued bonds of the Federal Government having a maturity of ten years or more, determined, in the case of loans or annual contributions, respectively, at the date of Presidential approval of the contract pursuant to which such loans or contributions are made: Provided, That, with respect to any loans or annual contributions made pursuant to a contract approved by the President after the first annual rate has been specified as provided in this proviso, the term "going Federal rate" means the annual rate of interest which the Secretary of the Treasury shall specify as applicable to the six-month period (beginning with the six-month period ending December 31, 1953) during which the contract is approved by the President, which applicable rate for each six-month period shall be determined by the Secretary of the Treasury by estimating the average yield to maturity, on the basis of daily closing market bid quotations or prices during the month of May or the month of November, as the case may be, next preceding such six-month period, on all outstanding

1 Sec. 903 (c), Housing and Urban Development Act of 1970, Public Law 91-609, approved December 31, 1970, 84 Stat. 1770, 1808, added the last three sentences of paragraph (6).

2 This proviso was added by sec. 24(c), Housing Amendments of 1953, Public Law 94, 83d Congress, approved June 30, 1953, 67 Stat. 121, 128.

marketable obligations of the United States having a maturity date of fifteen or more years from the first day of such month of May or November, and by adjusting such estimated average annual yield to the nearest one-eighth of one per centum: And provided further, That for the purposes of this Act, the going Federal rate shall be deemed to be not less than 212 per centum.

(11) The term "public housing agency" means any State, county, municipality, or other governmental entity or public body (excluding the Authority), which is authorized to engage in the development or administration of low-rent housing or slum clearance. The Authority shall enter into contracts for financial assistance with a State or State agency where such State or State agency makes application for such assistance for an eligible project which, under the applicable laws of the State, is to be developed and administered by such State or State agency.

(12) The term "State" includes the States of the Union, the District of Columbia, the Commonwealth of Puerto Rico, the Trust Territory of the Pacific Islands, and the territories and possessions of the United States.

(13) The term "Authority" means the United States Housing Authority created by section 3 of this Act.

2

(14) The term "initiated" when used in reference to the date on which a project was initiated refers to the date of the first contract for financial assistance in respect to such project entered into by the Authority and the public housing agency.

UNITED STATES HOUSING AUTHORITY

3

SEC. 3. There is hereby created in the Department of Housing and Urban Development the United States Housing Authority, which shall be an agency and instrumentality of the United States. The functions, powers, and duties of the Authority are vested in and shall

1 Sec. 403(a). Housing and Urban Development Act of 1969. Public Law 91-152, approved December 24, 1969, 82 Stat. 379, 395, amended the term "State" to include the Trust Territory of the Pacific Islands.

2 Sec. 202, Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 163, deleted the following par. (14) and renumbered this paragraph (formerly numbered (15)) to be par. (14):)

"(14) The term 'veteran' shall mean a person who has served in the active military or naval service of the United States at any time (i) on or after September 16, 1940, and prior to July 26, 1947, (ii) on or after April 6, 1917, and prior to November 11, 1918, (iii) on or after June 27, 1950, and prior to such date thereafter as shall be determined by the President, and who shall have been discharged or released therefrom under conditions other than dishonorable. The term 'serviceman' shall mean a person in the active military or naval service of the United States who has served therein at any time (i) on or after September 16, 1940, and prior to July 26, 1947, (ii) on or after April 6, 1917, and prior to November 11, 1918, or (ii) on or after June 27, 1950, and prior to such date thereafter as shall be determined by the President."

3 Sec. 1719. Housing and Urban Development Act of 1968, Public Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 610, deleted "a body corporate of perpetual duration to be known as", and terminated the corporate status of the United States Housing Authority. 4 When originally created in 1937, the United States Housing Authority was in the Department of Interior. Reorganization Plan No. 1. effective July 1, 1939. 53 Stat. 1423, transferred the United States Housing Authority from the Department of Interior_to_the Federal Works Agency. Executive Order 9070 effective February 24, 1942, 7 Fed. Reg. 1529, transferred the housing functions of the Federel Works Agency to the National Housing Agency and provided that the functions of the United States Housing Authority should be administered as the Federal Public Housing Authority, one of the constituent units of the National Housing Agency. Reorganization Plan No. 3 of 1947 provided that the United States Housing Authority should be administered and known as the Public Housing Administration, one of the constituent agencies of the Housing and Home Finance Agency, and that the functions of the Administrator of the United States Housing Authority were transferred to the Public Housing Commissioner. The functions of the Public Housing Administration and its offices were transferred to the Secretary of the Department of Housing and Urban Development by sec. 5(a) of the Department of Housing and Urban Development Act, Public Law 89-174, approved September 9, 1965, 79 Stat. 667, 669.

be exercised by the Secretary of Housing and Urban Development (hereinafter referred to as the "Secretary"). No officer or employee of the Department of Housing and Urban Development, in the performance of any such functions, powers, or duties, shall participate in any matter affecting his personal interest or the interest of any corporation, partnership, or association in which he is directly or indirectly interested.

SEC. 4(a). The Secretary may accept and utilize such voluntary and uncompensated services and with the consent of the agency concerned may utilize such officers, employees, equipment, and information of any agency of the Federal, State, or local governments as he finds helpful in the performance of the duties of the Authority. In connection with the utilization of such services, the Authority may make reasonable payments for necessary traveling and other expenses.1 (b) The President may at any time in his discretion transfer to the Authority any right, interest, or title held by any department or agency of the Federal Government in any housing or slum-clearance projects (constructed or in process of construction on the date of enactment of this Act), any assets, contracts, records, libraries, research materials, and other property held in connection with any such housing or slum-clearance projects or activities, any unexpended balance of funds allocated to such department or agency for the development, administration or assistance of any housing or slum-clearance projects or activities, and any employees who have been engaged in work connected with housing or slum clearance. The Authority may continue any or all activities undertaken in connection with projects so transferred, subject to the provisions of this Act.

SEC. 5. (a) The principal office of the Authority shall be in the District of Columbia. but it may establish branch offices or agencies in any State, and may exercise any of its powers at any place within the United States. The authority may, by one or more of its officers or employees or by such agents or agencies as it may designate, conduct hearings or negotiations at any place.

(b) The Authority may sue and be sued in its own name, and shall be represented in all litigated matters by the Attorney General or such attorney or attorneys as he may designate.2

(c) The Authority shall be granted the free use of the mails in the same manner as the executive departments of the Government.

(d) The Authority, including but not limited to its franchise, capital, reserves, surplus, loans, incomes, assets, and property of any

1 Sec. 502 (c) of Public Law 901, 80th Congress, approved August 10, 1948, 62 Stat. 1268, 1283, provided that the Public Housing Commissioner may :

"(1) with the consent of the agency or organization concerned, accept and utilize equipment, facilities, or the services of employees of any State or local public agency or instrumentality, educational institution, or nonprofit agency or organization and, in connection with the utilization of such services, may make payments for transportation while away from their homes or regular places of business and per diem in lieu of subsistence enroute and at place of such service, in accordance with the provisions of 5 U.S.C. 73b-2;

"(2) utilize, contract with, and act through, without regard to section 3709 of the Revised Statutes, any Federal. State, or local public agency or instrumentality, educational institution, or non-profit agency or organization with the consent of the agency or organization concerned, and any funds available to said officers for carrying out their respective functions, powers, and duties shall be available to reimburse any such agency or organization; and, whenever in the judgment of any such officer necessary, he may make advance progress, or other payments with respect to such contracts without regard to the provisions of section 3648 of the Revised Statutes :".

2 Sec. 502(b) of Public Law 901. 80th Congress, approved August 10, 1948, 62 Stat. 1268, 1283. provided that the Public Housing Administration shall sue and be sued only with respect to its functions under the United States Housing Act of 1937, as amended, and title II of Public Law 671, Seventy-sixth Congress, approved June 28, 1940, as amended.

kind, shall be exempt from all taxation now or hereafter imposed by the United States or by any State, county, municipality, or local taxing authority. Obligations, including interest thereon, issued by public housing agencies in connection with low-rent-housing or slum-clearance projects, and the income derived by such agencies from such projects, shall be exempt from all taxation now or hereafter imposed by the United States.

SEC. 6. (a) The Authority may make such expenditures, subject to audit under the general law, for the acquisition and maintenance of adequate administrative agencies, offices, vehicles, furnishings, equipment, supplies, books, periodicals, printing and binding, for attendance at meetings, for any necessary traveling expenses within the United States, its Territories, dependencies, or possessions, and for such other expenses as may from time to time be found necessary for the proper administration of this Act. Such financial transactions of the Authority as the making of loans, annual contributions, and capital grants, and the acquisition, sale, exchange, lease, or other disposition of real and personal property, and vouchers approved by the Secretary in connection with such financial transactions, shall be final and conclusive upon all officers of the Government; except that all such financial transactions of the Authority shall be audited by the General Accounting Office at such times and in such manner as the Comptroller General of the United States may by regulation prescribe. (b) Repealed.1

(c) The use of funds made available for the purposes of this Act shall be subject to the provisions of section 2 of title 3 of the Treasury and Post Office Appropriation Act for the fiscal year 1934 (47 Stat. 1489), and to make such provisions effective every contract or agreement of any kind pursuant to this Act shall contain a provision identical to the one prescribed in section 3 of title 3 of such Act.

(d) No annual contribution, grant, or loan, and no contract for any annual contribution, grant, or loan, under this Act, shall be undertaken by the Authority except with the approval of the President.2

(e) With respect to all projects under title II of Public Law 671, Seventy-sixth Congress, approved June 28, 1940, references therein to the United States Housing Act of 1937. as amended, shall include all amendments to said Act made by the Housing Act of 1949 or by any other law thereafter enacted.

SEC. 7. (a) The Authority may publish and disseminate information pertinent to the various aspects of housing.

(b) The annual report of the Secretary to the President for submission to the Congress on the operations of the Department of Housing and Urban Development shall incude a report on the operations and expenses of the Authority, including loans, contributions,

1 Sec. 6(b) repealed by sec. 1 of Public Law 247, 82d Congress, approved October 31. 1951, 65 Stat. 701. Sec. 6(b) provided that the provisions of sec. 3709 of the Revised Statutes (41 U.S.C. 5) shall apply to all contracts of the Authority for services and to all of its purchases of supplies except when the aggregate amount involved is less than $300. Sec. 6(b) was made unnecessary by subsequent amendments of sec. 3709 of the Revised Statutes.

2 See also Executive Order 11196. issued February 2, 1965, 30 Fed. Reg. 1171, empowering the Housing and Home Finance Administrator to approve the undertakings without the approval, ratification, or other action of the President.

This sentence amended to read as set forth in the text by sec. 802(d) of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 643.