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HOUSING ACT OF 1949

MAY 16, 1949.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. SPENCE, from the Committee on Banking and Currency, submitted the following

REPORT

[To accompany H. R. 4009]

The Committee on Banking and Currency to whom was referred the bill (H. R. 4009) to establish a national housing objective and the policy to be followed in the attainment thereof, to provide Federal aid to assist slum-clearance projects and low-rent public housing projects initiated by local agencies, to provide for financial assistance by the Secretary of Agriculture for farm housing, and for other purposes, having considered the same, report favorably thereon, with amendments, and recommend that the bill as amended, do pass. The amendments are as follows:

1. Page 8, lines 5 and 6, and page 10, line 18, strike out "not to exceed in any fiscal year an additional" in each place where such appears therein and insert in lieu thereof "additional amounts aggregating not more than".

2. Page 17, line 12, insert a comma after "3709" and the following "as amended,".

3. Page 19, line 6, strike out "sections 1 and 2 of the", strike out all of line 7 and "and 276c)" on line 8, and insert in lieu thereof "title 18 U. S. C., section 874, and of title 40 U. S. C., section 276c,". 4. Page 21, line 2, strike out "platted urban or suburban"; and on lines 7 and 8 strike out "unplatted urban or suburban".

5. Page 28, line 5, strike out "need" and insert in lieu thereof "needs".

6. Page 28, line 24, strike out "initiated after March 1, 1949,". 7. Page 29, line 6, after the word "project" insert "initiated after the date of enactment of the Housing Act of 1949,".

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8. Page 29, strike out all of line 16 and strike out through "servicemen)" on line 17, and insert in lieu thereof:

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;

9. Page 29, lines 23 and 24, strike out "(including families of deceased veterans or servicemen)" where such appears therein.

10. Page 30, line 4, insert a comma immediately following "connected" and the following:

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

11. Page 30, line 22, after "(5)" strike out the remainder of said line and strike out all of lines 23, 24, and 25 and strike out all of lines 1 through 6, inclusive, on page 31 and insert in lieu thereof:

Every contract made pursuant to this Act for loans (other than preliminary loans), annual contributions, or capital grants for any low-rent housing project completed after January 1, 1948, shall provide that the cost for construction and equipment of such project (excluding land, demolition, and nondwelling facilities) shall not exceed $1,750 per room ($2,500 per room in the case of Alaska)

12. Page 31, line 21, strike out "The Authority shall make loans,”, strike out all of lines 22, 23 and strike out through the word "projects" on line 24 and insert in lieu thereof:

Every contract made pursuant to this Act for loans (other than preliminary loans), annual contributions, or capital grants with respect to any low-rent housing project initiated after March 1, 1949, shall provide that such project shall be undertaken in such a manner that it

13. Page 32, line 6, following the comma strike out "every contract for", strike out all of line 7 and strike out through “March 1, 1949," on line 8, and insert in lieu thercof "every such contract".

14. Page 32, line 24, insert a comma following the word "shall" and the following "if the Authority so requires,".

15. Page 35, line 5, immediately following the word "Act" and befor the close parenthesis insert "and notwithstanding any other provisions of law".

16. Page 35, line 17, strike out "provisions of this Act" and insert in lieu thereof "first proviso of subsection 10 (b), or, where applicable, the second proviso of subsection 10 (c)".

17. Page 41, lines 17 and 18, strike out "not to exceed in any fiscal year an additional amount of" where such appears therein and insert in lieu thereof "additional amounts aggregating not more than".

18. Page 42, line 17, strike out "not to exceed in any fiscal year an additional" and insert in lieu thereof "additional amounts aggregating not more than"; and on line 20 strike out "not to exceed in any fiscal year" and insert in lieu thereof "amounts aggregating not more than". 19. Page 43, line 4, strike out "development" and insert in lieu thereof "commencement of construction”.

20. Page 43, line 24, before the comma following the word "exemption" insert "and the authorization of payments in lieu of taxes".

21. Page 44, line 10, strike out "contributions were payable" and insert in lieu thereof "contribution dates occurred"; and on lines 22 and 23 strike out "contributions are payable" where such appears therein and insert in lieu thereof "contribution dates occur".

22. Page 45, line 21, strike out "familities" and insert in lieu thereof "families".

23. Page 48, immediate following line 11 insert the following new section 208:

TRANSFER AND OPERATION OF LABOR CAMPS

SEC. 208. (a) Section 2 (d) of the Farmers' Home Administration Act of 1946, as amended; section 43 (f) of the Bankhead-Jones Farm Tenant Act, as amended; and Public Law 298, approved July 31, 1947, are repealed effective as of the date of the transfer of the property and funds authorized hereunder.

(b) The United States Housing Act of 1937, as amended, is hereby amended as follows:

(1) By adding the following new subsection (f) to section 12:

(f) There is hereby transferred to the Authority, effective not later than sixty days after the effective date of the Housing Act of 1949, all right, title, and interest, including contractual rights and reversionary interests, held by the Federal Government in and with respect to all labor supply centers, labor homes, labor camps, and facilities held in connection therewith and heretofore administered by the Secretary of Agriculture, for use by the Authority as low-rent housing projects in rural nonfarm areas for families and persons of low income. Such projects when so transferred shall (notwithstanding any other provision of law) be low-rent housing projects subject to the provisions of this Act, except as otherwise provided in this subsection. Any or all of the accommodations in any of such projects, other than standard family dwellings as determined by the Administrator (where preference shall also be given migratory farm workers and their families), may be reserved for rental to migratory agricultural workers and their families and the rents of the accommodations so reserved shall not be higher than such workers can afford. The provisions of the second and third sentences of subsection 2 (1) of this Act shall not be applicable to the occupants of accommodations other than standard family dwellings. The Authority is authorized to enter into contracts for disposal of said projects by any of the methods provided in this Act, including disposal of any such project to a public housing agency for a consideration consisting of the payment by the public housing agency to the Authority during a term of not less than twenty years of all income therefrom after deduction of the amounts necessary for (i) reasonable and proper costs of management, operation, maintenance, and improvement of such project, (ii) payments in lieu of taxes not in excess of 10 per centum of shelter rents, (iii) establishment and maintenance of reasonable and proper reserves, and (iv) the payment of currently maturing installments of principal and interest on any indebtedness incurred in connection with such project by the public housing agency with the approval of the Authority. Pending sale or lease of said projects to public housing agencies, the Authority may continue present leases and permits, or may enter into new leases with public bodies or nonprofit organizations for the operation of such projects. Pending sale of such projects, the Authority may make any necessary improvements thereto and may pay any deficits incurred in their improvement and administration out of any of the funds available to it under this Act. Appropriations to reimburse the Authority for any amounts expended pursuant to this subsection, in excess of the funds transferred with such projects, are hereby authorized.";

(2) By inserting in subsection 12 (b) following the word "Federal" the words "low-rent housing";

(3) By inserting in the first sentence of subsection 12 (c) following the word "Federal" the words "low-rent housing";

(4) By deleting in subsection 12 (d) the word "project" in the three places where it occurs and substituting the word "projects"; and

(5) By deleting from subsection 12 (e) the word "any" where it first occurs and substituting therefor the word "the", and by deleting the word "project" in the two places where it occurs in subsection 12 (e) and substituting the word "projects".

(c) All unexpended balances of funds available for the maintenance, operation, and liquidation of the properties transferred hereunder and for administrative expenses in connection therewith shall be transferred, upon the transfer of such properties, to the Public Housing Administration to be available, until expended, in accordance with the provisions of the United States Housing Act of 1937, as amended.

24. Page 53, line 12, strike out "321b" and insert in lieu thereof "321n".

25. Page 54, line 6 after the period on said line insert the following new sentence:

To facilitate the cooperation of Federal agencies in carrying out such studies or surveys, such Federal agencies are hereby authorized to accept funds and reimburse their appropriation for the cost of such studies or surveys.

26. Page 55, immediately following line 8 insert the following new section:

SEC. 304. The Administrator shall appoint a Director to administer the provisions of this title under the direction and supervision of the Administrator, and the basic rate of compensation of such position shall be the same as the basic rate of compensation established for the heads of the constituent agencies of the Housing and Home Finance Agency.

27. Page 72, line 8, strike out "51" and insert in lieu thereof "501". 28. Page 73, lines 19, 20 and 23 and page 75, lines 2, 3 and 6, strike out "moneys" where such appears in each place therein and in each instance insert in lieu thereof "monies".

29. Page 77, lines 3 and 4, strike out "the State or" where such appears therein.

30. Page 78, immediately following line 8 insert the following new sections, section 508 and section 509:

NATIONAL CAPITAL HOUSING AUTHORITY

SEC. 508. Notwithstanding any other provisions of law, the National Capital Housing Authority is hereby authorized to acquire sites for low-rent public housing projects assisted under the provisions of the United States Housing Act of 1937, as amended.

DISTRICT OF COLUMBIA PARTICIPATION

SEC. 509. To make available to the District of Columbia, and to authorize the appropriate agencies operating therein to accept, the benefits provided by titles I and II of this Act, the District of Columbia Redevelopment Act of 1945 is hereby amended by renumbering sections 20, 21, and 22 thereof as sections 21, 22, and 23, respectively. and by adding after section 19 a new section to read as follows:

"SEC. 20. (a) As an alternative method of financing its authorized operations and functions under the provisions of this Act (in addition to that provided in section 16 of this Act), the Agency is hereby authorized and empowered to accept financial assistance from the Housing and Home Finance Administrator (hereafter in this section referred to as the Administrator), in the form of advances of funds, loans, and capital grants, pursuant to title I of the Housing Act of 1949, to assist the Agency in acquiring real property for redevelopment of project areas and carrying out any functions authorized under this Act for which advances of funds, loans, or capital grants may be made to a local public agency under title I of the Housing Act of 1949, and the Agency, subject to the approval of the District Commissioners and subject to such terms, covenants, and conditions as may be prescribed by the Administrator pursuant to title I of the Housing Act of 1949, may enter into such contracts and agreements as may be necessary, convenient, or desirable for such purposes.

"(b) Subject to the approval of the District Commissioners, the Agency is authorized to accept from the Administrator advances of funds for surveys and plans in preparation of a project or projects authorized by this Act which may be assisted under title I of the Housing Act of 1949, and the Agency is authorized to transfer to the Planning Commission so much of the funds so advanced as the District Commissioners shall determine to be necessary for the Planning Commission to carry out its functions under this Act with respect to the project or projects to be assisted under title I of the Housing Act of 1949.

"(c) The District Commissioners are authorized to include in their annual estimates of appropriations items for administrative expenses which, in addition to

loan or other funds available therefor, are necessary for the Agency in carrying out its functions under this section.

"(d) Notwithstanding the limitation contained in the last sentence of section 110 (d) or in any other provision of title I of the Housing Act of 1949, the Administrator is authorized to allow and credit to the Agency such local grants-in-aid as are approvable pursuant to said section 110 (d) with respect to any project or projects undertaken by the Agency under a contract or contracts entered into under this section and assisted under title I of the Housing Act of 1949. In the event such local grants-in-aid as are so allowed by the Administrator are not sufficient to meet the requirements for local grants-in-aid pursuant to title I of the Housing Act of 1949, the District Commissioners are hereby authorized to enter into agreements with the Agency, upon which agreements the Administrator may rely, to make cash payments of such deficiencies from funds of the District of Columbia. The District Commissioners shall include items for such cash payments in their annual estimates of appropriations, and there are hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the amounts necessary to provide for such cash payments. Any amounts due the Administrator pursuant to any such agreements shall be paid promptly from funds appropriated for such purpose.

"(e) All receipts of the Agency in connection with any project or projects financed in accordance with this section with assistance under title I of the Housing Act of 1949, whether in the form of advances of funds, loans, or capital grants made by the Administrator to the Agency, or in the form of proceeds, rentals, or revenues derived by the Agency from any such project or projects, shall be deposited in the Treasury of the United States to the credit of a special fund or funds, and all moneys in such special fund or funds are hereby made available for carrying out the purposes of this Act with respect to such project or projects, including the payment of any advances of funds or loans, together with interest thereon, made by the Administrator or by private sources to the Agency. Expenditures from such fund shall be audited, disbursed, and accounted for as are other funds of the District of Columbia.

"(f) With respect to any project or projects undertaken by the Agency which are financed in accordance with this section with assistance under title I of the Housing Act of 1949

(1) sections 3 (f), 3 (k), and 7 (g), and the last sentence of section 6 (b) (2) of this Act shall not be applicable to those pieces of real property which, in accordance with the approved project area redevelopment plan, are to be devoted to public housing to be undertaken under Public Law 307, Seventy-third Congress, approved June 12, 1934, as amended;

"(2) the site and use plan for the redevelopment of the area, included in the redevelopment plan of the project area pursuant to section 6 (b) (2) of this Act, shall include the approximate extent and location of any land within the area which is proposed to be used for public housing to be undertaken under Public Law 307. Seventy-third Congress, approved June 12, 1934, as amended;

"(3) notwithstanding any other provisions of this Act, the Agency, pursuant to section 7 (a) of this Act, shall have power to transfer to and shall at a practicable time or times transfer by deeds to the National Capital Housing Authority those pieces of real property which, in accordance with the approved project area redevelopment plan, are to be devoted to public housing to be undertaken under Public Law 307, Seventy-third Congress, approved June 12, 1934, as amended, and, in accordance with the requirements of section 107 of the Housing Act of 1949, the National Capital Housing Authority shall pay for the same out of any of its funds available for such acquisition.

"(g) It is the purpose and intent of this section to authorize the District Commissioners and the appropriate agencies operating within the District of Columbia to do any and all things necessary to secure financial aid under title I of the Housing Act of 1949. The District of Columbia Redevelopment Land Agency is hereby declared to be a local public agency for all of the purposes of title I of the Housing Act of 1949. As such a local public agency for all of the purposes of title I of the Housing Act of 1949, the Agency is also authorized to borrow money from the Administrator or from private sources as contemplated by title I of the Housing Act of 1949, to issue its obligations evidencing such loans, and to pledge as security for the payment of such loans, and the interest thereon, the property, income, revenues, and other assets acquired in connection with the project or projects financed in accordance with this section with assistance under

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