found necessary for accomplishing the purposes of this title and for the preservation of the Government's security interest. The extent of the requirements for building plans, supervision, and inspection. would depend upon the character of the construction and the amount of the loan.

The Secretary would also be authorized under this section to furnish, without charge or at such charges as he may determine, to any person, including any person eligible for financial assistance under this title, building plans, specifications, construction supervision, advice and information, and similar technical services regarding farm dwellings and other buildings. In order to assure that such services are rendered consistent with the primary purpose of the bill, specific authorization for research and technical studies is contained in this section. It is contemplated that the research studies will include economic, technical, and research to provide an adequate basis for extending financial assistance and for the preparation of estimates and reports on national farm housing needs and the progress being made toward meeting such needs which the Secretary would be required to submit under this section. Through the provisions of this section it is believed that funds made available to eligible borrowers will go far in demonstrating and effectuating economies in farm-building construction which are so necessary on most of the farms of the Nation if they are to be improved with adequate buildings.

SECTION 407. PREFERENCE FOR VETERANS

This section requires that the Secretary of Agriculture give preference to veterans and families of deceased servicemen as between eligible applicants for assistance under this title.

SECTION 408. LOCAL COMMITTEES TO ASSIST SECRETARY

This section permits the use of committees of local farmers in examining the applications for assistance under this title and the making of recommendations to the Secretary with respect to the applicant's eligibility, his likelihood of success, his character, ability, and experience, and whether the farm with respect to which the application is made is of such character that the making of the loan will carry out the purposes of this title. The local committees will also certify their opinions as to the reasonable values of the farms, for security purposes. Committees of farmers appointed under this section or pursuant to existing law, principally those appointed under the Bankhead-Jones Farm Tenant Act, will be utilized.

SECTION 409. GENERAL POWERS OF SECRETARY

This section gives the Secretary the power to determine and prescribe standards of adequate farm housing and other farm buildings for individual farms and for localities. In prescribing such standards, he will take into consideration such things as the type of housing which will provide decent, safe, and sanitary dwellings for the family of the occupant, the type and character of the farming operations contemplated and the size and earning capacity of the land.

This section also authorizes the Secretary to require an applicant to agree that the improvements, constructed with assistance under

this title, shall not be a justification for unwarranted changes in the lease or occupancy agreements between the applicant and the occupant of such farms without the Secretary's approval. This provision has for its purpose assurance that the benefits of this title will be extended to the tenants on the applicant's farm without the danger of charging such tenants for benefits which inure to the landowner.

SECTION 410. ADMINISTRATIVE PROVISIONS

This section enumerates certain powers to be vested in the Secretary which are necessary in the administration of a program of this type. Of most importance among these is the authority to compromise claims and obligations arising under this title in the manner which has been successfully undertaken in connection with loans made under the Bankhead-Jones Farm Tenant Act. One of the most effective devices in the servicing of loans is the power which would be granted the Secretary to release borrowers from personal liability without regard to their debt-paying ability in connection with the transfer of their farms to the Secretary or to other approved applicants who assume all or a portion of the outstanding indebtedness to the Secretary. The provisions of the General Debt Settlement Act applicable to programs administered by the Secretary of Agriculture (58 Stat. 836) are also made applicable to claims under this title. This section also includes such servicing authority as collection of claims and pursuing them to final judgment, if necessary, in any court of competent jurisdiction, with the assistance of the Attorney General and the United States attorneys; the bidding for and the purchasing, at foreclosure sale or otherwise, of property securing obligations under this title; and the lease, operation and sale of such security property on terms and conditions determined by the Secretary to be reasonable. Under this provision, security property acquired in liquidation of obligations can be disposed of in furtherance of the principal objectives of the act.

SECTION 411. LOAN FUNDS

This section authorizes the financing of loans to farm owners by means of funds made available to the Secretary of Agriculture by the Secretary of the Treasury on such terms and conditions as may be prescribed by the Secretary of Agriculture with the approval of the Secretary of the Treasury. The Secretary of the Treasury would use the proceeds of the sales of securities under the Second Liberty Bond Act to secure funds advanced to the Secretary of Agriculture. Such advance would be repaid primarily from the repayments of principal and interest on obligations of individual borrowers.

Under this section, the contemplated loan program begins with $25,000,000 to be available on and after July 1, 1949, and such additional sums as may be determined by the Congress from time to time to be made available on and after July 1, 1950, July 1, 1951, and July 1, 1952. These sums will not exceed $50,000,000, $75,000,000, and $100,000,000, respectively.

SECTION 412. CONTRIBUTIONS

This section limits the agreements of the Secretary with borrowers under the authority of section 403 on potentially adequate farms so

H. Repts., 81-1, vol. 3-76

that the aggregate contributions or credits under those agreements made on and after July 1, 1949, will not exceed $500,000 per annum for not to exceed 10 years, and limits additional commitments pursuant to the same section made on and after July 1 of the years 1950, 1951, and 1952, to those calling for additional annual credits of not more than $1,000,000, $1,500,000, and $2,000,000, respectively.

SECTION 413. AUTHORIZATION FOR APPROPRIATIONS

This section authorizes appropriations to supplement receipts from borrowers so that the Secretary of Agriculture may fully repay the Secretary of the Treasury the amounts advanced and interest thereon when due. It also authorizes an initial appropriation of $1,000,000 for temporary repair grants under section 404, to be made on and after July 1, 1949, and additional appropriations for this purpose to be made available on and after each of the years 1950, 1951, and 1952, in the amounts of $2,500,000, $4,000,000, and $5,000,000, respectively. Authorization is provided finally for sums to be appropriated for the research and technical services and for general administration of this title of the bill.

TITLE V-MISCELLANEOUS PROVISIONS

SECTION 501. ADVISORY COMMITTEES

This section authorizes the Housing and Home Finance Administrator to appoint such advisory committees as may be necessary in carrying out his functions, powers and duties under this or any other

act.

This section also provides that service as a member of any such advisory committee shall not constitute any form of service or employment within the provisions of title 18, United States Code, section 281, 283, or 284.

Title 18, United States Code, section 283, prohibits an officer or employee of the United States from acting as agent or attorney for prosecuting any claim against the United States or aiding or assisting in the prosecution or support of any such claim or receiving any gratuity or any share of or interest in any such claim, and provides a fine of not more than $10,000, or not more than 1 year's imprisonment, or both.

Title 18, United States Code, section 281, prohibits an officer or employee of the United States directly or indirectly from receiving or agreeing to receive any compensation for any services rendered or to be rendered in relation to any proceeding, contract, claim, controversy, charge, accusation, arrest or other matter in which the United States is a party or directly or indirectly interested before any agency, court or commission, and provides a fine of not more than $10,000 or not more than 2 years' imprisonment, or both.

Title 18, United States Code, section 284, prohibits any person within 2 years after employment in any agency of the United States from prosecuting or acting as counsel, attorney, or agent for prosecuting, any claims against the United States involving any matter directly connected with which such person was so employed or performed duty. It provides a fine of not more than $10,000 or imprisonment for not more than 1 year, or both.

This section follows title III, section 303 (b), Public Law 253, Eightieth Congress-the National Security Act of 1947-except that this section of the bill provides a complete exception from title 18, United States Code, section 284, whereas the National Security Act provision grants exception from such provision unless the act of such individual is made unlawful when performed by such individual, with respect to any particular matter which directly involves the department or agency which such person is advising or in which such department or agency is directly interested. The provisions of this section. of the bill necessarily must be broader so as to not bring a member of the advisory committee who is doing business with the Federal Housing Administration within the prohibition of that section.

SECTION 502. AMENDMENTS OF NATIONAL BANKING ACT

By reason of the provisions of the new section 22 of the United States Housing Act of 1937, as amended (which new section is added by sec. 204 (b) of the bill), special security features would attach to definitive bonds issued by local public-housing agencies in connection with the low-rent public-housing program. Special security features would also attach to short-term notes issued by local public agencies in connection with slum-clearance projects, and by public-housing agencies in connection with low-rent housing projects, when secured by a pledge of rights of any such agency under its loan contract with the Government.

In recognition of these security features, section 502 (a) provides for an amendment of the National Banking Act so that national banks, and (to the extent permitted by State laws) State member banks of the Federal Reserve System, would be authorized to purchase larger amounts, and, to underwrite, local public-housing agency definitive bonds and, when adequately secured, short-term notes (which obligations shall have a maturity of not more than 18 months) issued by local public agencies in connection with slum-clearance projects or by public-housing agencies in connection with low-rent public-housing projects. Without this amendment, investment in such obligations by these banks would continue to be subject to the same restrictions as are applicable to local public-housing agency definitive bonds, which are now issued without these special security features. In other words, they could be purchased for the banks' own account only to the extent of 10 percent of unimpaired capital and surplus.

Section 502 (b) is a technical amendment which should be made in conjunction with the amendment of the National Banking Act provided for in section 502 (a). The amendment to paragraph seventh of section 5136 of the Revised Statutes, made by subsection 502 (a), relates to short-term obligations only when they are classified as "investment securities." However, there could arise some question as to whether some issues of these short-term notes would be investment securities or would rather partake of the nature of a loan. Therefore, it is necessary to also amend section 5200 of the Revised Statutes which prescribes the same limitations for the purchase of loans as are prescribed by section 5136 for the purchase of investment securities.

SECTION 503. NATIONAL HOUSING COUNCIL

This section provides that the Secretary of Labor or his designee, and the Federal Security Administrator or his designee, shall be included in the membership of the National Housing Council in the Housing and Home Finance Agency.

SECTION 504. AMENDMENTS OF THE GOVERNMENT

CORPORATIONS

APPROPRIATION ACT, 1948, AND THE GOVERNMENT CORPORATIONS APPROPRIATION ACT, 1949

The Government Corporations Appropriation Acts for 1948 and for 1949 included provisos to the effect that no payments of annual contributions should be made which were occasioned by payments in lieu of taxes in excess of amounts originally contracted for. This restriction had the effect of prohibiting payments in lieu of taxes equal to 10 percent of shelter rents, as had been previously authorized by PHA, and as will be authorized in the future under subsection 205 (b) of this bill. These provisos of the two appropriation acts are therefore repealed as of the beginning of the fiscal years for which they apply, thus validating any payments already made with the approval of PHA and in other cases permitting payments in lieu of taxes on the restricted basis (generally 5 percent of shelter rents) authorized for these 2 years in subsection 205 (b).

The Government Corporations Appropriation Act for 1949 also limits the number of employees of the Public Housing Administration above grades CAF-10 and P-3 to not exceeding 20 percent of the total number of administrative employees. Under the expanded program of low-rent public housing a relatively greater number of trained technical employees will be required than were necessary under the former operations of the agency when low-rent public housing represented only a small portion of its total responsibilities. This section also repeals this 20-percent limitation in order to permit the recruitment of the trained personnel which will be necessary to put the new program into operation.

SECTION 505. DEPUTY HOUSING AND HOME-FINANCE ADMINISTRATOR

This section provides for the appointment and compensation of a Deputy Housing and Home Finance Administrator who would act as Administrator during the absence or disability of the Administrator or in the event of a vacancy in that office, and who shall perform such other duties as the Administrator shall direct.

SECTION 506. CONVERSION OF STATE LOW-RENT OR VETERANS' HOUSING PROJECTS

This section permits State-aided low-rent housing or veterans' housing to be converted, under specified conditions, to low-rent housing assisted under the United States Housing Act of 1937. The conditions to such conversion are (a) a contract for State financial assistance for such project was entered into on or after January 1, 1948, and prior to January 1, 1950, (b) the project is or can become eligible for assistance by the Public Housing Administration in the form of loans and annual contributions under the provisions of the United States