and grants made or contracted for, low-rent housing and slum-clearance projects undertaken, and the assets and liabilities of the Authority. Such report shall include operating statements of all projects under the jurisdiction of or receiving the assistance of the Authority, including summaries of the incomes of occupants, sizes of families, rentals, and other related information.

SEC. 8. The Authority may from time to time make, amend, and rescind such rules and regulations as may be necessary to carry out the provisions of this Act.

LOANS FOR LOW-RENT HOUSING AND SLUM-CLEARANCE PROJECTS

1

SEC. 9. The Authority may make loans to public housing agencies 1 to assist the development, acquisition, or administration of low-rent housing or slum-clearance projects by such agencies. Where capital grants are made pursuant to section 11 the total amount of such loans outstanding on any one project and in which the Authority participates shall not exceed the development or acquisition cost of such project less all such capital grants, but in no event shall said loans exceed 90 per centum of such cost.2 Such loans shall bear interest at such rate not less than the applicable going Federal rate, plus one-half of one per centum, shall be secured in such manner, and shall be repaid within such period not exeeding sixty years, as may be deemed advisable by the Authority: Provided, That in the case of projects initiated after March 1, 1949, with respect to which annual contributions are contracted for pursuant to this Act, loans shall not be made for a period exceeding forty years from the date of the bonds evidencing the loan: And provided further, That, in the case of such projects or any other projects with respect to which the contracts (including contracts which amend or supersede contracts previously made) provide for loans for a period not exceeding forty years from the date of the bonds evidencing the loan and for annual contributions for a period not exceeding forty years from the date the first annual contribution for the project is paid, such loans shall bear interest at a rate not less than the applicable going Federal rate.

ANNUAL CONTRIBUTIONS IN ASSISTANCE OF LOW RENTALS

SEC. 10. (a) The Authority may make annual contributions to public housing agencies to assist in achieving and maintaining the lowrent character of their housing projects. The annual contributions for any such project shall be fixed in uniform amounts, and shall be paid

1 The First Independent Offices Appropriation Act, 1954, Public Law 176, 83d_Congress, approved July 31, 1953, 67 Stat. 298, 315, provides that during fiscal 1954 the PHA Commissioner shall make every effort to refund all local bonds held by the Public Housing Administration. The Independent Offices Appropriation Act, 1955, Public Law 428, 83d Congress, approved June 24, 1954, 68 Stat. 273, 297 provided that "during the fiscal year 1955 the Commissioner shall continue to make every effort to refund all local bonds held by the Public Housing Administration".

2 Sec. 211, Housing and Urban Development Act of 1969. Public Law 91-152, approved December 24, 1969, 83 Stat 379, 388, deleted at this point the sentence which read: "In the case of annual contributions in assistance of low rentals as provided in section 10 the total of such loans outstanding on any one project and in which the Authority participates shall not exceed 90 per centum of the development or acquisition cost of such project.".

in such amounts over a fixed period of years. The Authority shall embody the provisions for such annual contributions in a contract guaranteeing their payment over such fixed period: Provided, That the Authority may, in addition to the payments guaranteed under the contract, pay not to exceed $120 per annum per dwelling unit occupied by an elderly family, or a large family, or a family of unusually low income, or a displaced family if such family was displaced by an urban renewal or low-rent housing project on or after January 27, 1964, on the last day of the project fiscal year where such amount, in the determination of the Authority, was necessary to enable the public housing agency to operate the project on a solvent basis: Provided further, That the Authority is authorized to amend or supersede annual contributions contracts to provide payments annually (within the limitations prescribed by this Act) which the Authority determines are required (1) to assure the low-rent character of the projects involved, and (2) to achieve and maintain adequate operating and maintenance services and reserve funds including payment of outstanding debts. The Authority shall not make any contract for loans (other than preliminary loans) or for annual contributions or for capital grants pursuant to this Act with respect to any low-rent housing project initiated after March 1, 1949, unless the governing body of the locality involved has entered into an agreement with the public housing agency providing that, subsequent to the initiation of the low-rent housing project and within five years after the completion thereof, there has been or will be elimination, as 3 certified by the local governing body, by demolition, condemnation, effective closing, or compulsory repair or improvement, of unsafe or insanitary dwelling units situated in the locality or metropolitan area substantially equal in number to the number of newly constructed dwelling units provided by such project: Provided, however, That where more than one family is living in an unsafe or insanitary dwelling unit the elimination of such unit shall count as the elimination of units equal to the number of families accommodated therein: Provided further, That such elimination may, in the discretion of the Authority be deferred in any locality or metropolitan area where there is an acute shortage of decent, safe, or sanitary housing available to families of low income: And provided further, That this requirement shall not apply in the case of any low-rent housing project located in a rural nonfarm or Indian area, or to any low-rent housing project developed on the site of a slum cleared subsequent to the date of enactment of the Housing Act of 1949 and that the dwelling units which had been eliminated by the clearance of the site of such project shall not be counted as elimination for any other low-rent project.

(b) Annual contributions shall be strictly limited to the amounts and periods necessary, in the determination of the Authority, to as

1 Sec. 203. Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, provided this additional subsidy for units occupied by elderly families. Sec. 402. Housing Act of 1964, approved Sept. 2, 1964, 78 Stat. 769, 794, made units occupied by displaced families eligible for the additional subsidy. Sec. 209. Housing and Urban Development Act of 1968, Public Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 505, made the subsidy available for units occupied by large families, or families of unusually low income. 2 Sec. 210, Housing and Urban Development Act of 1970, Public Law 91-609, approved December 31, 1970, 84 Stat. 1770, 1778. inserted this second provisio.

Sec. 501, Housing and Urban Development Act of 1965, Public Law 89-117. approved August 10, 1985, 79 Stat. 451, 486, inserted "as certified by the local governing body,".

sure the low-rent character of the housing projects involved. Toward this end the Authority may prescribe regulations fixing the maximum contributions available under different circumstances, giving consideration of cost, location, size, rent-paying ability of prospective tenants, or other factors bearing upon the amounts and periods of assistance needed to achieve and maintain low rentals. Such regulations may provide for rates of contribution based upon development, acquisition or administration cost, number of dwelling units, number of persons housed, or other appropriate factors.1

(c) Every contract for annual contributions shall provide that whenever in any year the receipts of a public housing agency in connection with a low-rent housing project exceed its expenditures (including debt service, administration, maintenance, establishment of reserves, and other costs and charges), an amount equal to such excess shall be applied, or set aside for application, to purposes which, in the determination of the Authority, will effect a reduction in the amount of subsequent annual contributions. In no case shall any contract for annual contributions be made for a period exceeding sixty years: Provided, That in the case of projects initiated after March 1, 1949, contracts for annual contributions shall not be made for a period exceeding forty years from the date the first annual contribution for the project is paid. And provided further,3 That the amount of the fixed annual contribution which would be established under this Act for a newly constructed project by a public housing agency designed to accommodate a number of families of a given size and kind may be established, as a maximum annual contribution in lieu of any other guaranteed contribution authorized under this section, for a project by such public housing agency which would provide housing for the comparable number, sizes, and kinds of families through the acquisition, acquisition and rehabilitation, or use under lease of structures which are suitable for low-rent housing use and obtainable in the local market.

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(d) All payments 5 of annual contributions pursuant to this section shall be made out of any funds available to the Authority when such payments are due, except that its capital and its funds obtained through the issuance of obligations pursuant to section 20 (including repayments or other realizations of the principal of loans made out of such capital and funds) shall not be available for the payment of such annual contributions.

1 Sec. 3(2) of Public Law 92-503, approved October 18, 1972, 86 Stat. 906, deleted a proviso which limited fixed contributions payable to the applicable Federal going rate plus 1 per centum.

2 Sec. 3(3) of Public Law 92-503, approved October 18, 1972, 86 Stat. 906, deleted a proviso which allowed, where annual contributions were to be made for a period not exceeding 40 years, fixed contributions in excess (by 1 per centum of development or acquisition cost) of those allowable under the proviso deleted from sec. 10(b). See note 1, supra. 3 The proviso added by sec. 502, Housing and Urban Development Act of 1965, Public Law 89-117, approved August 10, 1965, 79 Stat. 451, 487.

The word "existing" deleted at this point by sec. 204 (a) (2), Housing and Urban Development Act of 1970, Public Law 91-609, approved December 31, 1970, 84 Stat. 1770, 1777. 5 The First Independent Offices Appropriation Act, 1954, Public Law 176, 83d Congress, approved July 31, 1953, 67 Stat. 298, 306, provided that all expenditures of the appropriation in that Act for annual contributions should be subject to audit and final settlement by the Comptroller General under the provisions of the Budget and Accounting Act of 1921, as amended.

See sec. 10(k) of the United States Housing Act of 1937, as amended.

81-793 O-77-25

(e) The Authority is authorized to enter into contracts for annual contributions aggregating not more than $554,250,000 per annum, which limit shall be increased by $100,000,000 on the date of enactment of the Housing and Urban Development Act of 1968 and by further amounts of $225,000,000 on July 1, 1969, $320,000,000 on July 1, 1970, $225,000,000 on July 1, 1971, $150,000,000 on July 1, 1972, and $140,000,000 on July 1, 1973, but any such contracts for additional units for any one State shall not, after the date of enactment of the Housing Act of 1961, be entered into for more than 15 per centum of the aggregate amount not already guaranteed under contracts for annual contri

1 As originally enacted by the United States Housing Act of 1937, Public Law 412, 75th Congress, approved September 1, 1937, 50 Stat. 888, 892, contracts were authorized for annual contributions aggregating not more than $5,000,000 per annum on and after September 1, 1937, $7,500,000 on or after July 1, 1938, and $7,500,000 on or after July 1, 1939.

The United States Housing Act Amendments of 1938, Public Law 122, 75th Congress, approved June 21, 1938, 52 Stat. 820, authorized contracts for annual contributions aggre gating not more than $28,000,000 on and after June 21, 1938.

The Housing Act of 1949, Public Law 171, 81st Congress, approved July 15, 1949, 63 Stat. 413, 427, authorized additional contracts on and after July 1, 1949, totaling $308,000,000 over a six-year period for 810,000 units. This Act further provided that, subject to the foregoing ceiling, such limit could be increased at any time or times by additional amounts aggregating not more than $55,000,000 upon a determination by the President, after receiving advice from the Council of Economic Advisers as to the general effect of such increase upon conditions in the building industry and upon the national economy, that such action is in the public interest.

In a letter dated July 18, 1950, President Truman requested the Housing and Home Finance Agency to reduce the construction of low-rent public housing units to 30,000 for the first 6 months of the fiscal year 1951 due to the Korean emergency.

The Independent Offices Appropriation Act, 1952, Public Law 137, 82d Congress, 65 Stat. 268, limited the low-rent public housing program to construction starts for 50,000 dwelling units during the fiscal year 1952.

The Independent Offices Appropriation Act, 1953, Public Law 455, 82d Congress, 66 Stat. 393, 403, limited the public housing program to construction starts for 35,000 dwelling units during the fiscal year 1953, and also prohibited the PHA from entering into future contracts exceeding 35,000 dwelling units during any one fiscal year subsequent to fiscal year 1953 unless a greater amount of units was hereafter authorized by the Congress.

The Independent Offices Appropriation Act, 1954, Public Law 176, 83d Congress, 67 Stat. 298, 307, limited construction starts to 20,000 units and prohibited any future construction contracts unless authorized by Congress.

The Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 630, 631, authorized new contracts for 35,000 additional units, during the fiscal year 1955, with no limitation on construction starts.

The Housing Amendments of 1955, Public Law 345, 84th Congress, approved August 11. 1955, 69 Stat. 635, 638, authorized new contracts for 45,000 additional units, with no limitation on construction starts.

The Housing Act of 1956. Public Law 1020, 84th Congress, approved August 7, 1956, 70 Stat. 1091. 1103, authorized new contracts for 35,000 additional units in each of the fiscal years 1957 and 1958. with no limitation on construction starts. This Act also provided that any balance of the authorization of 45,000 units in the Housing Amendments of 1955, not utilized by July 31, 1956, could be made available.

No further authorization was made for fiscal year 1959.

The Housing Act of 1959, Public Law 86-372, approved September 23, 1959. 73 Stat. 654, 680, authorized new contracts for 37,000 additional units, with no limitation on construction starts.

No further authorizations were provided for fiscal year 1961.

The Housing Act of 1961, Public Law 87-70. approved June 30, 1961, 75 Stat. 149. 163. made available the remaining balance of the $336 million annual contribution authorization in the Housing Act of 1949 ($28 million from the former authorization, plus the additional $308 million in the 1949 Act), covering approximately 100.000 units.

The Housing Act of 1964, Public Law 88-560, approved September 2. 1964, 78 Stat. 769. 795, increased the annual contribution authorization from $336.000.000 to $366.250,000. and authorized contracts for approximately 37,500 additional units, with no limitation on construction starts.

The Housing and Urban Development Act of 1965. Public Law 89-117, approved Angust 10, 1965, 79 Stat. 451, 487. increased the annual contribution authorization by $188 million covering 4 years, in increments of $47 million for each of the fiscal years 1966 through 1969 respectively. This increase provides an estimated 60,000 additional low-rent housing units annually over the 4-year period.

The Housing and Urban Development Act of 1968. Public Law 90-448. approved Aug. 1. 1968, 82 Stat. 476. 503. increased the authorization for annual contributions by $100 million Aug. 1. 1968, and by an additional $150 million on July 1 in each of the years 1969 and 1970. The Housing and Urban Development Act of 1969. Public Law 91-152. approved December 24, 1969, 83 Stat. 379, 389, increased the authorization for annual contributions from an additional $150 million to $225 million on July 1. 1969, and from an additional $150 million to $170 million on July 1. 1970. The Housing and Urban Devel opment Act of 1970, Public Law 91-609, approved December 31, 1970. 84 Stat. 1770. 1776. further increased the authorization for annual contribution contracts from an additional $170 million to $320 million on July 1. 1970. and by $225 million on July 1, 1971. Sec. 3 of Public Law 92-503, approved October 18. 1972, 86 Stat. 906, increased the authorization by $150 million on July 1, 1972: sec. 2 of Public Law 93-117 approved October 2, 1973 increased the authorization by $140 million on July 1, 1973.

butions on such date: Provided,1 That subject to any contractual obligation outstanding on the date of the enactment of the Housing and Urban Development Act of 1965, any units not under construction within five years from the date they were reserved to a public housing agency may be reserved, allocated, or placed under contract for annual contributions in any State without limitation as to the aggregate amount of units which may be placed under contract for annual contributions in any one State: Provided further, That 2 at least 30 per centum of the total amount of contracts for annual contributions entered into in any fiscal year pursuant to the new authority granted under section 202 of the Housing and Urban Development Act of 1970 or under any law subsequently enacted shall be entered into with respect to units of low-rent housing in private accommodations provided under section 23: And provided further, That the Authority shall enter into only such new contracts for preliminary loans as are consistent with the number of dwelling units for which contracts for annual contributions may be entered into. Without further authorization from Congress, no new contracts for annual contributions beyond those herein authorized shall be entered into by the Authority. The faith of the United States is solemnly pledged to the payment of all annual contributions contracted for pursuant to this section, and there is hereby authorized to be appropriated in each fiscal year, out of any money in the Treasury not otherwise appropriated, the amounts necessary to provide for such payments.

(f) Payments under annual contributions contracts shall be pledged, if the Authority so requires, as security for any loans obtained by a public housing agency to assist the development or acquisition of the housing project to which the annual contributions relate.

(g) Every contract for annual contributions for any low-rent housing project shall provide that

1 Sec. 504, Housing and Urban Development Act of 1965, Public Law 89-117, approved August 10, 1965, 79 Stat. 457, 487, inserted this proviso.

2 Sec. 203, Housing and Urban Development Act of 1970, Public Law 91-609, approved December 31, 1970, 84 Stat. 1770, 1777, inserted this proviso.

3 Sec. 217(b), Housing and Urban Development Act of 1969, Public Law 91-152, approved December 24, 1969, 83 Stat. 379, 390, deleted the workable program requirement for low-rent public housing in the first part of this proviso.

Sec. 205, Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149. 164, amended this subsection to place greater responsibility in the local housing authorities for admission policies, and sec. 401(b), Housing Act of 1964, Public Law 88-560, approved September 2. 1964, 78 Stat. 769, 794, further amended this subsection to substitute "displaced families" for "those displaced by urban renewal or other governmental action" in par. (2) and to add the proviso at the end of par. (2). With the exception of the foregoing amendments by the Housing Act of 1964, sec. 205 of the Housing Act of 1961 amended this subsection to read as set forth in the text.

Immediately prior to amendment sec. 10(g) read as follows:

"(g) Every contract made pursuant to this Act for annual contributions for any lowrent housing project shall require that the public housing agency, as among low-income families which are eligible applicants for occupancy in dwellings of given sizes and at specified rents, shall extend the following preferences in the selection of tenants:

"First, to families which are to be displaced by any low-rent housing project or by any public slum-clearance, redevelopment or urban renewal project, or through action of a public body or court, either through the enforcement of housing standards or through the demolition, closing, or improvement of dwelling units, or which were so displaced within three years prior to making application to such public housing agency for admission to any low-rent housing: Provided. That as among such projects or actions the public housing agency may from time to time extend a prior preference or preferences; And provided further. That, as among families within any such preference group, first preference shall be given to families of disabled veterans whose disability has been determined by the Veterans' Administration to be service-connected, and second preference shall be given to families of deceased veterans and servicemen whose death has been determined by the Veterans' Administration to be service-connected, and third preference shall be given to families of other veterans and servicemen;

"Second, to families of other veterans and servicemen and as among such families first preference shall be given to families of disabled veterans whose disability has been determined by the Veterans' Administration to be service-connected, and second preference shall be given to families of deceased veterans and servicemen whose death has been determined by the Veterans' Administration to be service-connected."