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" (d) I n order to carry out the purposes of this section, the Secretary is authorized to insure any mortgage which covers a new or rehabilitated nursing home, including equipment to be used in its operation, subject to the following conditions:"; and (3) by striking out "when the proposed improvements are completed" before the period at the end of subsection (d)(2) and inserting in lieu thereof the following: ", including equipment to be used in the operation of the nursing home, when the proposed improvements are completed and the equipment is installed". F L E X I B L E I N T E R E S T RATES FOR CERTAIN F H A INSURANCE PROGRAMS

Ante,

p. 113.

SEC. 315. Section 3(a) of the Act entitled "An Act to amend chapter 37 of title 38 of the United States Code with respect to the veterans' home loan program, to amend the National Housing Act with respect to interest rates on insured mortgages, and for other purposes", approved May 7, 1968, is amended by inserting "235(3)(2)(C), 236 U)(4)(B), 240(c)(4), 241(b)(3), 2 4 2 (d)(3)(B), " after "234(f),". F H A SECTION

80 Stat. 1268^. 1715.

O U T L Y I N G AREAS

?^?- ^^'^- Section 203(i) of the National Housing Act is amended by striking out "not in excess of $12,500" and inserting in lieu thereof "not in excess of $13,500". ,',

80^stat^\266'

PROGRAM

QEC. 316. (a) Section 221(h)(2)(A) of the National Housing Act is amended to read as follows: " (A) be executed by a private nonprofit corporation or association, approved by the Secretary, for financing the purchase and rehabilitation (with the intention of subsequent resale) of property comprising one or more tracts or parcels, whether or not contiguous, upon which there is located deteriorating or substandard housing consisting of (i) four or more single-family dw^ellings of detached, semidetached, or row construction, or (ii) four or more one-family units in a structure or structures for which a plan of family unit ownership approved by the Secretary is established;", (b) Section 221(h) of such Act is amended by adding at the end thereof (after the new paragraph added by section 101(c)(3) of this Act) two new paragraphs as follows: "(7) Where the Secretary has approved a plan of family unit ownership, the terms 'single-family dwelling', 'single-family dwellings', 'individual dwelling', an 'individual dwellings' shall mean a family unit or family units, together with the undivided interest (or interests) in the common areas and facilities. "(8) For purposes of this subsection, the terms 'single-family dwelling' and 'single-family dwellings' (except for purposes of paragraph (7)) shall include a two-family dwelling which has been approved by the Secretary if one of the units is to be occupied by the owner." HOUSING I N

JltTu^eV^' 12 USC 1709

221(h)

SEASONAL H O M E S

'^^*^" ^^^' ^ection 203 of the National Housing Act is amended by adding at the end thereof the following new subsection: "(m) The Secretary is authorized to insure under this section any mortgage meeting the requirements of subsection (b) of this section, except as modified by this subsection. To be eligible, the mortgage shall involve a principal obligation not in excess of $15,000 and not

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in excess of 75 per centum of the appraised value of the property, as of the date the mortgage is accepted for insurance. The mortgage shall cover a dwelling for single-family occupancy which is approved for mortgage insurance prior to the beginning of construction. The dwelling need not be designed for year-round occupancy, but it shall (1) meet standards prescribed by the Secretary, and (2) be located in an area where the Secretary finds it is not practicable to obtain conformity with many of the requirements essential to the insuring of mortgages on housing in built-up urban areas. The development of the property with respect to which the mortgage is executed shall be consistent with the conservation of water and other natural resources of the area, and such property shall be an acceptable risk, giving consideration to the economic potential of the area in which the dw^elling is located and the contribution that the housing will make toward improving the area. The Secretary may suspend the issuance of commitments under this subsection for the insurance of mortgages secured by properties situated in any area, whenever he determines that (i) there is a serious and unusual shortage of mortgage funds for residential construction in such area, (ii) such insurance would affect materially and adversely the availability of mortgage funds for residential construction in such area, and (iii) such suspension would not have an adverse impact upon the balanced economic development of the area." TITLE IV—GUARANTEES FOR FINANCING NEW COMMUNITY LAND DEVELOPMENT CITATION

SEC. 401. This title may be referred to as the "New Communities Act of 1968''. PURPOSE

SEC. 402. It is the purpose of this title, by facilitating the enlistment of private capital in new community development, to encourage the development of new communities that— (1) contribute to the general betterment of living conditions through the improved quality of community development made possible by a consistent design for the provision of homes, commercial and industrial facilities, public and community facilities, and open spaces; (2) make substantial contributions to the sound and economic growth of the areas in which they are located; (3) provide needed additions to the general housing supply; (4) provide opportunities for innovation in housing and community development technology and in land use planning; (5) enlarge housing and employment opportunities by increasing the range of housing choice and providing new investment opportunities for industry and commerce; (6) encourage the maintenance and growth of a diversified local homebuilding industry; and (7) include, to the greatest extent feasible, the employment of new and improved technology, techniques, materials, and methods in housing construction, rehabilitation, and maintenance under programs administered by the Department of Housing and Urban Development with a view to reducing the cost of such construction, rehabilitation, and maintenance, and stimulating the increased and sustained production of housing under such programs.

citation of title.

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[82 STAT.

AUTHORITY

SEC. 403. To carry out the purposes of this title the Secretary is authorized to guarantee, and enter into commitments to j*;uarantee, the bonds, debentures, notes, and other obligations issued by new community developers to help finance new community development projects. The Secretary may make such guarantees and enter into such commitments, subject to the limitations contained in sections 404 and 405, upon such terms and conditions as he may prescribe, taking into account (1) the large initial capital investment required to finance sound new communities, (2) the extended period before initial returns on this type of investment can be expected, (8) the irregular pattern of cash returns characteristic of such investment, and (4) the financial and security interests of the United States in connection with guarantees made under this title. ELIGIBLE N E W

COMMUNITY

DEVEIvOPMENT

SEC. 404. No guarantee or commitment to guarantee may be made under this title unless the Secretary has determined that— (1) the proposed new community (A) will be economically feasible in terms of economic base or potential for growth, and (B) will contribute to the orderly growth and development of the area of which it is a part; (2) there is a practicable plan (including appropriate time schedules) for financing the land acquisition and land development costs of the proposed new community and for improving and marketing the land which, giving due consideration to the public purposes of this title and the special problems involved in financing new communities, represents an acceptable financial risk to the United States; (3) there is a sound internal development plan for the new community which (A) has received all governmental approvals required by State or local law or by the Secretary; and (B) is 'acceptable to the Secretary as providing reasonable assurance that the development will contribute to good living conditions in the area being developed, wdll be characterized by sound land use patterns, will include a proper balance of housing for families of low and moderate income, and will include or be served by such shopping, school, recreational, transportation, and other facilities as the Secretary deems satisfactory; and (4) the internal development plan is consistent with a comprehensive plan which covers, or with, comprehensive planning being carried on for, the area in which the land is situated, and which meets criteria established by the Secretary for such comprehensive plans or planning. ELIGIBI>E OBLIGATIONS

SEC. 405. (a) Any bond, debenture, note or other obligation guaranteed under this title shall— (1) be issued by a new community developer, other than a public body, approved by the Secretary on the basis of financial, technical and administrative ability which demonstrates his capacity to carry out the proposed project; (2) be issued to and held by investors approved by, or meeting requirements prescribed by, the Secretary, or if an offering to the public is contemplated, be underwritten upon terms and conditions approved by the Secretary;

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(3) be issued to finance a program of land development (including acquisition or use of land) approved by the Secretary: Provided, That the Secretary shall, through cost certification procedures, escrow or trusteeship requirements, or other means, insure that all proceeds from the sale of obligations guaranteed under this title are expended pursuant to such program; (4) involve a principal obligation in an amount not to exceed the lesser of (A) 80 per centum of the Secretary's estimate of the value of the property upon completion of the land development or (B) the sum of 75 per centum of the Secretary's estimate of the value of the land before development and 90 per centum of his estimate of the actual cost of the land development; (5) bear interest at a rate satisfactory to the Secretary, such interest to be exclusive of any service charges and fees that may be approved by the Secretary; (6) contain repayment and maturity provisions satisfactory to the Secretary; and (7) contain provisions which the Secretary shall prescribe with respect to the protection of the security interests of the United States (includnig subrogation provisions), liens and releases of liens, payment of taxes, and such other matters as the Secretary may, in his discretion, prescribe. (b) The outstanding principal obligations guaranteed under this title with respect to a single new community development project shall at no time exceed $50,000,000. F E E S A N D CHARGES

SEC. 406. The Secretary is authorized to establish and collect fees for guarantees made under this title and may make such charges as he considers reasonable for the analysis of development and financing plans and for appraisals and inspections related to new community development projects. On or before January 1, 1970, the Secretary ^^^1°^^'° *^°"' shall make a report to the Congress concerning the fees and other gress. charges under this title that he estimates will be adequate to provide income sufficient for a self-supporting program. GUARANTEE

FUND

SEC. 407. (a) To provide for the payment of any liabilities incurred as a result of guarantees made under this title, the Secretary is authorized to establish a revolving fund which shall be comprised of (1) receipts from fees and charges; (2) recoveries under security or subrogation rights or other rights, and any other receipts obtained in connection with such guarantees; and (3) such sums, which are hereby authorized to be appropriated, as may be required for program operations and nonadministrative expenses and to make any and all payments guaranteed under this title. (b) The full faith and credit of the United States is pledged to the payment of all guarantees made under this title with respect to both principal and interest, including (1) interest, as may be provided for in the guarantee, accruing between the date of default under a guaranteed obligation and the payment in full of the guarantee, and (2) principal and interest due under any debentures issued by the Secretary toward payment of guarantees made under this title. (c) Notwithstanding any other provision of law relating to the acquisition, handling, improvement, or disposal of real and other I)roperty by the United States, the Secretary shall have power, for the protection of the interests of the guarantee fund authorized under this section, to pay out of such fund all expenses or charges in con-

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[82 STAT.

nection with the acquisition, handling, improvement, or disposal of any property acquired by him under this title; and notwithstanding any other provision of law, the Secretary shall also have power to pursue to final collection by way of compromise or otherwise all claims acquired by him in connection with any security, subrogaticm, or other rights obtained by him in carrying out this title. (d) The aggregate of the outstanding principal obligations guaranteed under this title shall at no time exceed $250,00,00. INCONTESTABILITY

SEC. 408. Any guarantee made by the Secretary under this title shall be conclusive evidence of the eligibility of the obligations for such guarantee, and the validity of any guarantee so made shall be incontestable in the hands of a qualified holder of the guaranteed obligation except for fraud or material misrepresentation on the pail of such holder. ENCOURAGEMENT

OF SMALL

BUILDERS

SEC. 409. The Secretary shall adopt such requirements as he deems necessary to assure that new community construction assisted under this title will encourage the maintenance of a diversified local homebuilding industry and broad participation by builders, particularly small builders. LABOR

49 Stat. 1011;

63 Stat. 108.

SEC. 410. All laborers and mechanics employed by contractors or subcontractors in land development assisted under section 403 shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a^— 276a-5). No assistance shall be extended under section 408 for land development without first obtaining adequate assurance that these labor standards will be maintained upon the construction work involved in such development. The Secretary of Labor shall have, with respect to the labor standards specified in this section, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267), and section 2 of the Act of June 13, 1934 (40 U.S.C. 276c). REAL PROPERTY

TAXATION

SEC. 411. Nothing in this title shall be construed to exempt any real property that may be acquired and held by the Secretary as a result of the exercise of lien or subrogation rights from real property taxation to the same extent, according to its value, as other real property is taxed. S U P P L E M E N T A R Y GRANTS

Federal contribution.

SEC. 412. (a) The Secretary is authorized to make supplementary grants to State and local public bodies and agencies carrying out new community assistance projects, as defined in section 415(c), if the Secretary determines that such grants are necessary or desirable for carrying out a new community development project approved for assistance under section 403, and that a substantial number of housing units for low and moderate income persons is to be made available through such development project. (b) I n no case shall any grant under this section exceed 20 per centum of the cost of the new community assistance project for which the grant is made; and in no case shall the total Federal contributions to the cost of such project be more than 80 per centum.

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(c) In carrying out his authority under this section the Secretary shall consult with the Secretary oi Agriculture with respect to new community assistance projects assisted by that Department, and he shall, for the purpose of subsection (b), accept that Department's certifications as to the cost of such projects. (d) There are authorized to be appropriated for grants under this Appropriations. section not to exceed $5,000,000 for the fiscal year ending June 30, 1969, and not to exceed $25,000,000 for the fiscal year ending June 30, 1970. Any amounts so appropriated shall remain available until exl^ended, and any amounts authorized for any fiscal year under this subsection but not appropriated may be appropriated for any succeeding fiscal year commencing prior to July 1, 1970. (lENEKAL PROVISIONS AND RULES AND REGULATIONS

SEC. 413. I n the performance of, and with respect to, the functions, powers, and duties vested in him by this title, the Secretary shall (in addition to any authority otherwise vested in him) have the functions, powers, and duties (including the authority to issue rules and regulations) set forth in section 402, except subsections (c)(2), (d), and (f), of the Housing Act of 1950: Provided, That subsection ^^ Stat. 78; (a)(1) of section 402 shall not apply with respect to functions, powers, Tusc V749a. and duties under section 412 of this title. A U D I T BY GENERAL ACCOUNTING

OFFICE

SEC. 414. Insofar as they relate to any grants or guarantees made pursuant to this title, the financial transactions of recipients of Federal grants or of developers whose obligations are guaranteed by the United States pursuant to this title may be audited by the General Accounting Office under such rules and regulations as may be prescribed by the Comptroller General of the United States. The °^° access to representatives of the General Accounting Office shall have access to all '^^""'^ ^' ^ books, account, records, reports, files, and all other papers, things, or property belonging to or m use by such developers or recipients of grants pertainnig to such financial transactions and necessary to facilitate the audit. DEFINITIONS

SEC. 415. As used in this title— (a) The term "land development" means the process of grading land, making, installing, or constructing water lines and water supply installations, sewer lines and sewage disposal installations, steam, gas, and electric lines and installations, roads, streets, curbs, gutters, sidewalks, storm drainage facilities, and other installations or work, whether on or off the site, which the Secretary deems necessary or desirable to prepare land for residential, commercial, industrial, or other uses, or to provide facilities for public or common use. The term "land development" shall not include any building unless it is (1) a building which is needed in connection with a water supply or sewage disposal installation or a steam, gas, or electric line or installation, or (2) a building, other than a school, which is to be owned and maintained jointly by the residents of the new community or is to be transferred to public ownership, but not prior to its completion. (b) The term "actual costs" means the costs (exclusive of rebaites or discounts) incurred by a new community developer in carrying out the land development assisted under this title. These costs may include amounts paid for labor, materials, construction contracts, land planning, engineers' and architects' fees, surveys, taxes, and interest during development, organizational and legal expenses, such allocation of gen-

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[82 STAT.

11 vTc 3^^o2 79 Stat. 931.

eral overhead expenses as are acceptable to the Secretary, and other items of expense incidental to development which may be approved by the Secretary. If the Secretary determines that there is an identity of interest between the new community developer and a contractor, there may be included as a part of actual costs an allowance for the contractor's profit in an amount deemed reasonable by the Secretary, (c) The term "new community assistance projects" means projects assisted by grants made under section 70^ of the Housing and Urban I^velopment Act of 1965, section 306(a)(2) of the Consolidated Farm^rs' Home Administration Act, or title VII of the Housing Act of

7 USC 1926.

1961.

7S Stat 1 8"^* 79 Stat. 494 42 USC 1500-

isooe. 75 Stat. 174; ^°42 USC^i492 69 Stat. 633. 12 USC 3 7 1.

79 Stat. 4 6 1. 12 USC 1749aa.

12 us^c 1^^^

CONFORMING

AMENDMENTS

SEC. 416. (a) Section 202(b)(4) of the Housing Amendments of 1955 is amended by adding before the period at the end of the second sentence "or under title IV of the Housing and Urban Development Act of 1968". (b) The first paragraph of section 24 of the Federal Reserve Act is amended by striking out all that follows "national banking association" in the fourth sentence and adding "may make loans or purchase obligations for land development which are secured by mortgages insured under title X of the National Housing Act or guaranteed under title IV of the Housing and Urban Development Act of 1968.". (c) The paragraph which, prior to the amendments made by this Act, was the next to last paragraph of section 5(c) of the Home Owners' I ^ a n Act of 1933 is amended by adding at the end thereof the following new sentence: "Without regard to any other provision of this subsection, an association may invest in loans or obligations, or interests therein, as to which the association has the benefit of any guaranty under title IV of the Housing and Urban Development Act of 198, as now or hereafter in effect, or of a commitment or agreement therefor, and such investments shall not be included in any percentage of assets or other percentage referred to in this subsection." TITLE V—URBAN R E N E W A L NEIGHBORHOOD DEVELOPMENT

79^star45V^477 42 USC 1450-

PROGRAMS

^ ^ - ^^^' ^^^ ^^^^^ ^ ^^ ^^^ Housing Act of 1949 is amended by adding after the title heading the following new subheading:

1468.

"PART A—URBAN RENEWAL PROJECTS, DEMOLITION PROGRAMS, AND CODE ENFORCEMENT PROGRAMS"

(b) Title I of such Act is further amended by adding at the end thereof the following new part: " P A R T B—NEIGHBORHOOD DEVELOPMENT PROGRAMS "PURPOSE AND AUTHORITY

"SEC. 131. (a) To facilitate more rapid renewal and development of urban areas on an effective scale, and to encourage more efficient and flexible utilization of public and private development opportunities by local communities in such areas, the Secretary is authorized to make financial assistance available under this title to local public agencies for undertakings and activities which are carried out under a neighborhood development program approved by him pursuant to this part. "(b) A neighborhood development program shall consist of urban renewal project undertakings and activities in one or more urban re-

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519

newal areas which are planned and carried out on the basis of annual increments in accordance with the provisions of this title for planning and carrying out urban renewal projects, except as modified by the provisions of this part. "(c) No application for financial assistance in planning and carrying out a neighborhood development program shall be approved by the Secretary unless— ''(1) the governing body of the locality has, by resolution or ordinance, approved the proposed program and the annual increment covered by the application and authorized the filing of the application for financial assistance; and "(2) the Secretary has concluded that there is the necessary capacity to carry out the undertakings and activities included under the program. "FINANCIAL PROVISIONS

"SEC. le^2. (a) Upon the approval of a neighborhood de\elopment program by the Secretary, the cost of any undertakings and activities authorized as part of the program shall be financed in accordance with the loan, capital grant, and project cost provisions of part A, except • 1

j_

^2 USC 14501468.

1 hat— "(1) net project cost may be calculated on the basis of costs incurred and proceeds derived for the account of the program during a specified twelve-month period, and may be recalculated for succeeding periods of twelve months to reflect additional costs and additional proceeds since the date of the last computation or recomputation; and "(2) if property has been acquired but not disposed of prior to the computation or recomputation of net project cost, temporary loans made or secured under this title to finance undertakings or activities included in the program may remain outstanding until the property has been disposed of and the proceeds thereof together with additional funds becoming available to the program, are sufficient to permit repayment of the loans. "(b) In the event that gross project cost as computed for a specified twelve-month period is exceeded, with respect to that period, by the sum of (1) the sales price of land or other property sold, and (2) the imputed capital value of land or other proj^erty leased or retained by the local public agency in accordance with the provisions of the urban renewal plan, the local public agency shall pay to the Secretary two-thirds of the excess (or three-fourths in the case of a program on a three-fourths grant basis), which amount shall be available to the Secretary for grant payments under section 103. 63 Stat. 416; -^

'^

^ '' LOCAL GRANTS-IN-AID

"SEC. 133. (a) For the purpose of determining the eligibility of local grants-in-aid in connection with undertakings and activities carried out under a neighborhood development program, the three-year period referred to in the second paragraph of section 110(d) shall be deemed to be a period of three years prior to the authorization by the Secretary of the first contract for financial assistance under the program which includes the urban renewal area which is benefited by the public improvement or facility for which credit is claimed; and the seven-year iperiod referred to m clause (1) of section 112(b) shall be deemed to be a period of seven years prior to the date of authorization by the Secretary of the first contract for financial assistance under the program which includes the urban renewal area which is benefited by the expenditures for which credit is claimed.

S-600 O - 69 - 36

7342 u s e672. Stat. 1453.

^^ ^g^'- ^^^^_

35 Stat. 169. 42 USC 1463. ""

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42 USC U5°4.

PUBLIC LAW 90-448-AUG. 1, 1968

" (b) No portion of the cost of a public improvement or public facility (to the extent otherwise eligible) may be included as a local grant-in-aid in computing the gross project cost of an approved program for any twelve-month period— "(1) prior to commencement of construction of the improvement or facility, or " (2) in excess of the amount actually expended or obligated by contract. "(<^) The provisions of section 104 with respect to the pooling of local grants-m-aid among the various projects undertaken by a local public agency shall not be applicable with respect to any excess local grants-in-aid resulting from the urban renewal projects contained in a neighborhood development program. ((GENERAL

^2 u^* ^^^

II use U53 79 Stat. 475. 42 USC 1455. 42 us^c i^^e

42 us^c 14^6^0'

71 Stat. 3 0 1.

60 Stat. 794 68 Stat. 630

D^c". coX 5705,5-717a.

[82 STAT.

PROVISIONS

"SEC. 134. (a) For purposes of this part— '^i^) ^^® workable program requirement in section 101(c) shall apply to the authorization, rather than the execution, of any contract for loans or capital grants; "(2) capital grants on a three-fourths basis may only be made "^^^^^«^^ti«^ 10^(^) (2)(B).; "(3) the relocation requirements specified in section 105(c) shall apply to each annual increment of an approved program; " ( ^) section 106(g) (relating to transient housing) shall apply to activities undertaken under approved programs, except that the determination as to need for transient housing shall be made with respect to any sale or lease of land for construction of such housing prior to such sale or lease; and "(5) the requirement concerning demolition and removal of buildings and improvements stated in clause (A) of the sentence following paragraph (10) of section 110(c) shall apply to each annual increment of an approved program. " (b) The approval by the Secretary of financial assistance for one or more annual increments of a neighborhood development program shall not be considered as obligating him to provide financial assistance for any subsequent annual increments. "(c) The urban renewal plan referred to in section 110(b) may cover one or more of the urban renewal areas covered by a neighborhood development program and such plan may be modified from time to time to cover additional urban renewal areas added to the program. The Secretary may establish such requirements as he deems appropriate prescribing the scope and content of such plan, taking into consideration, among other matters, the degree of detail needed in the plan to properly and expeditiously carry out the activities and undertakings proposed in any annual increment of a neighborhood development program." (c) Notwithstanding any requirement or condition to the contrary in section 6 or 20(i) of the District of Columbia Redevelopment Act of 1945 or in any other provision of law, the District of Columbia Redevelopment Land Agency may plan and undertake neighborhood development programs under part B of title I of the Housing Act of 1949 (as added by this section), subject to all of the provisions of such Act of 1945 to the extent not inconsistent with such part B, and any such program shall be regarded as complying with the requirements of such sections 6 and 20(i) and of such other provision of law if it meets the applicable requirements established under such part B.

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PUBLIC LAW 90-448-AUG. 1, 1968 INCREASED

521

AUTHORIZATION

SEC. 502. (a) Section 103(b) of the Housing Act of 1949 is amended by striking out everything in the first sentence after "exceed" and inserting in lieu thereof "$7,600,000,000, which amount shall be increased by $1,400,000,000 on July 1, 1969". (b) Section 103(b) of such Act is further amended by striking out "$250,000,000" in the second sentence and inserting in lieu thereof "$600,000,000". REHABILITATION

GRANTS

63 Stat. 4i6; 42 USC 1453. ^° ^*°'- ^26o. rt^p Q hJ^^

SEC. 503. (a) The second sentence of section 115(a) of the Housing Act of 1949 is amended by striking out the words "a structure" and ^^ ^^^- '*57 "such structure" and inserting in lieu thereof "real property" and ^'*^^' "such real property", respectively. (b) Section 115(b) of such Act is amended by striking out "$1,500" and inserting in lieu thereof "$3,000". (c) Section 115(a) of such Act is amended by inserting " (1) " after " (a) ", and by adding at the end thereof a new paragraph as follows: "(2) I n addition to the authority conferred by paragraph (1), and notwithstanding any other provision of this title, the Secretary is authorized, through the utilization of local public agencies where feasible, to make grants (payable from any grant funds provided under section 103(b)) to an individual or family, as described in subsection (b), to cover the cost of repairs and improvements necessary to make real property owned and occupied by such individual or family conform to public standards for decent, safe, and sanitary housing. No grants shall be made under this paragraph in the case of any property, unless (A) such property is in an area within a locality (other than an urban renewal or code enforcement area) which the governing body of the locality has determined, and so certifies to the Secretary, contains a substantial number of structures in need of such repairs and improvements, (B) there is in effect for the locality a workable program meeting the requirements of section 101(c), and (C) ^^ Stat. 623. the area is definitely planned for rehabilitation or concentrated code ^'*^^ enforcement within a reasonable time, and such repairs and improvements to such property are consistent with the plan for rehabilitation or concentrated code enforcement." (d) Section 115 of such Act is further amended— (1) by redesignating subsection (b) as supsection (c) and inserting after subsection (a) a new subsection (b) as follows: " (b) The Secretary is authorized to make grants (payable from any grant funds provided under section 103(b)), through the utilization of local public and private agencies where feasible, to an individual or family, as described in subsection (c), who owns and occupies real property which has been determined to be uninsurable because of physical hazards after an inspection pursuant to a statewide property insurance plan approved by the Secretary under title X II or the National Housing Act. Such grants may only be made to rehabilitate ^°^'' P- sse. such property to the extent which the Secretary determines to be necessary to make it meet reasonable underwriting standards imposed by such plan."; and (2) by striking out "subsection (b) " in subsection (a) and inserting in lieu thereof "subsection (c)". \ R E H A B I L I T A T I O N I N U R B A N R E N E W A L AREAS

SEC. 504. Section 110(c)(8) of the Housing Act of 1949 is amended by striking out (1) "guidance purposes, and", and (2) the proviso at the end thereof.

7o Stat. 1097; 42 USC ueo.

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[82 STAT.

DISPOSITION OF PROPERTY FOR LOW AND MODERATE INCOME HOUSING

78 Stat. 786.

SEC. 505. Section 107(a) of the Housing Act of 1949 is amended— (1) by inserting after "public body or agency, the following: "or other approved purchaser or lessee,"; (2) by inserting ", section 221(h)(1), section 2 3 5 (j)(l), or section 286" after "or (d)(4) "; (3) by inserting "or lessee'* after "a purchaser" and after "such purchaser", and "or lease" after "purchase"; (4) by striking out "rental or cooperative"; (5) by striking out "moderate" and inserting in lieu thereof "low or moderate"; and (6) by inserting before the period at the end thereof the following: ": Provided, That when property is made available under clause (1) to an approved purchaser or lessee other than a limited dividend corporation, nonprofit corporation or association, cooperative, or public body or agency, the Secretary shall assure that the benefits of this subsection will go to the occupant of the property rather than to such purchaser or lessee". (JRANTS FOR LOW AND MODERATE INCOME HOUSING IN OPEN LAND PROJECTS

^^63 stat^.^416; 42 USC 1453.

gpy. 506. Section 103(a)(1) of the Housing Act of 1949 is amended by inserting before the period at the end thereof the following: ", except that he may contract for a grant in an amount not to exceed two-thirds of the difference between the proceeds from any land disposed of pursuant to section 107 and the fair value of the land without regard to such section". URBAN RENEWAL IX)AN CONTRACTS

63 Stat. 414. 42 USC 1452.1

68 Stat. 626. 42 USC 1460

gjx^, 507. (a) Section 102(c) of the Housing Act of 1949 is J J

^

amended— (1) by striking out "at interest rates lower than provided in the loan contract" in the first sentence; and (2) by inserting before the period at the end of the first sentence the following: ": Provided, That, if at any time during the undertaking of the project, the interest rate on such a loan from a source other than the Federal Government is greater than the rate at which funds could be made available under the Federal loan contract, the Secretary may make a supplemental grant to the local public agency in the amount of the difference between the interest cost from such sources and the interest cost at the contract rate, and no part of the amount of any such grant shall be required to be contributed as a part of the local grant-in-aid". (b) Loan contracts outstanding on the date of enactment of this section may be amended to incorporate the provisions authorized by the amendment contained in subsection (a) without regard to the proviso in section 110(g) of the Housing Act of 1949. PROJECT COMPLETION PRIOR TO DISPOSITION OF CERTAIN PROPERTY

63 Stat. 417. 42 USC 1456.

SEC. 508. (a) Section 106 of the Housing Act of 1949 is amended by adding at the end thereof the following new subsection: "(i) Upon a determination by the Secretary that (1) not more than 5 per centum of the total area of land acquired as part of an urban renewal project remains to be disposed of, (2) the local public agency does not expect to be able, due to circumstances beyond its control, to dispose of such land in the near future, (3) all other project activities are completed, and (4) the local public agency has agreed to dispose

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of or retain such land for uses in accordance with the urban renewal plan, the urban renewal project may be deemed completed, and the net project cost may be computed and the capital grant paid." (b) Section 110(f) of such Act is amended by inserting before the period at the end thereof the following: "or for subsequent disposition or retention as provided under section 106(i) ". REHABILITATION

523

^^ ^^^^- f^^^ 42 USC 1460.

LOANS

SEC. 509, (a) The first sentence of section 812(d) of the Housing Act of 1964 is amended to read as follows: ''There is authorized to be 7/5131^479^°' appropriated not to exceed $150,000,000 for each fiscal year which 42 USC 1452b. shall constitute a revolving fund to be used by the Secretary in carrying out this section." (b) Section 312(h) of such Act is amended by striking out "October 1, 1969" and inserting in lieu thereof ''June 30, 1973". (c) Section 312(a) of such Act is amended to read as follows: " (a) The Secretary is authorized, through the utilization of local public and private agencies where feasible, to make loans as herein provided to the owners and tenants of property to finance the rehabilitation of such property. No loan shall be made under this section unless— "(1)(A) the property is situated in an urban renewal area or an area in which a program of concentrated code enforcement activity is being carried out pursuant to section 117 of the Housing Act of 1949, and the rehabilitation is required to make the prop- ^^ us^c iles erty conform to applicable code requirements or to carry out the objectives of the urban renewal plan for the area and, in addition, to generally improve the condition of the property; or " (B)(i) the property is in an area (other than an area described in subparagraph (A) which the governing body of the locality has determined, and so certifies to the Secretary, contains a substantial number of structures in need of rehabilitation, (ii) there is in effect for the locality a workable program meeting the requirements of section 101(c) of the Housing Act of 1949, (iii) ^^usc' ''^^ the property is residential and owner-occupied, (iv) the property ^^ is in need of rehabilitation and is in violation of the local minimum housing or similar code, and (v) the area is definitely planned for rehabilitation or concentrated code enforcement within a reasonable time, and the rehabilitation of such property is consistent with the plan for rehabilitation or code enforcement; " (2) the applicant is unable to secure the necessary funds from other sources upon comparable terms and conditions; and " (3) the loan is an acceptable risk taking into consideration the need for the rehabilitation, the security available for the loan, and the ability of the applicant to repay the loan." (d) Section 312 of such Act is further amended— (1) by inserting "or" after the semicolon at the end of paragraph (1)(B) in subsection (a) (as amended by subsection (c) of this section), and by inserting after such paragraph (1)(B) the following new subparagraph: " (C)(i) the property has been determined to be uninsurable because of physical hazards after an inspection pursuant to a statewide property insurance plan approved by the Secretary under title X II of the National Housing Act, and (ii) the loan Post, p. 556. is made to the owner or tenant of the property to finance rehabilitation which the Secretary determines to be necessary to make the property meet reasonable underwriting standards: "; and

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[82 STAT.

(2) by striking out "or" after "applicable codes" in subsection (b)(1) and inserting in lieu thereof a comma, and by inserting after "urban renewal plan" in such subsection ", or a statewide property insurance plan". (e) Section 312(a) of such Act (as amended by the preceding provisions of this section) is amended by adding at the end thereof the following new sentence: "Notwithstanding the preceding provisions of this subsection, no loan with respect to residential property shall be made under this section to any person whose annual income, as determined pursuant to criteria and procedures established by the Secretary, exceeds the limits prescribed by the Secretary for occupants of projects financed with below-market interest rate mortgages insured (in the area involved) under section 221(d)(3) of the National 12 \jsc 17151. Housing Act: Provided, That the provisions of this sentence shall not apply to property in the area of an urban renewal project or a code enforcement project for which the city or other local public body or agency is receiving financial assistance under title I of the Housing i468-"Anti^^° Act of 1949 if, prior to the date of enactment of the Housing and 518.' " ^' Urban Development Act of 1968, such local public body or agency specifically developed plans for such project in reliance upon the availability of loans under this section." DEMOLITION GRANTS

42 USC 1*^7

SEC. 510. (a) The first sentence of section 116(a) of the Housing Act ^^ ^^^^ ^^ amended by inserting after "unsound" the following: ", a harborage or potential harborage of rats,". (b) Section 116(b) of such Act is amended by inserting after the comma at the end of clause (2) the following: "or will be consistent with a systematic rodent control program being undertaken in the neighborhood,". AIR RIGHTS SITES I N URBAN RENEWAL AREAS

sJ sfaTu^r' 42 USC 1460.

^^'^- '^11- (^).Section 110(c)(1) (iy) of the Housing Act of 1949 is amended by striking out "for use for industrial development" and inserting in lieu thereof "for use for the development of industrial or educational facilities". (b) Section 110(c)(7) of such Act is amended by striking out "for industrial development" and inserting in lieu thereof "for the development of industrial or educational facilities". LOW^ AND MODERAlTi INCOME HOUSING IN RESIDENTIAL URBAN RENEWAL AREAS

80 Stat. 1281.

SJ-C. 512. Section 105(f) of the Housing Act of 1949 is amended to

42 USC 1455.

1

» n,

read as lolmws: "(f) A majority of the housing units provided in each community's total of such approved urban renewal projects as will be redeveloped for predominantly residential uses and which receive Federal recognition after the date of enactment of the Housing and Urban Development Act of 1968 shall be standard housing units for low and moderate income families or individuals: Provided, That the units in each community's total of such approved urban renewal projects which are for low-income families or individuals shall constitute at least 20 per cenReport of waiver ^ ^ j ^ Qf ^j^g uuits iu such projects, except that the Secretary may to congressional

committees.

•

.i

•

j.

j: j.i *

•

•

••

•

.t

^ \_

waive the requirement oi this proviso in any community to the extent that units for low-income families and individuals are not needed. The Secretary shall promptly report any waiver under the proviso in

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the preceding sentence to the Committees on Banking and Currency of the Senate and the House of Representatives." WORKABLE PROGRAM REQUIREMENT IN CASE OF INDIAN TRIBES

SEC. 513. Section 101(c) of the Housing Act of 1949 is amended by •

•

"^

•

•

^^ f'Jf* '^8^. 42 USC 14^1

inserting after "1964" in the second proviso the following: "or, in the case of an Indian tribe, band, or nation, commencing January 1, 1970". INTERIM ASSISTANCE FOR BLIGH'I'EI) AREAS

SEC. 514. Title I of the Housing Act of 1949 is amended by adding after section 117 a new section as follows:

42 USC 1450468.

" I N T E R I M ASSISTANCE FOR BLIGHTED AREAS

"SEC. 118. Notwithstanding any other provision of this title, the Secretary is authorized to enter into contracts (in an aggregate amount not to exceed $15,000,000 in any fiscal year) to make, and to make, grants as provided in this section (payable from any grant funds provided under section 108(b)) to cities, other municipalities, and counties ^^ sm. 4i6^ for the purpose of assisting such localities in carrying our programs to alleviate harmful conditions in slum and blighted areas which are planned for substantial clearance, rehabilitation, or federally assisted code enforcement in the near future but in which some immediate public action is needed until clearance, rehabilitation, or code enforcement activities can be undertaken. Such grants shall not exceed two-thirds (or three-fourths in the case of any city, other municipality, or county having a population of fifty thousand or less according to the most recent decennial census) of the cost of planning and carrying out programs which may include (1) the repair of streets, sidewalks, parks, playgrounds, publicly owned utilities, and public buildings to meet needs consistent with the short-term continued use of the area prior to the undertaking of the contemplated clearance or upgrading activities, (2) the improvement of private properties to the extent needed to eliminate the most immediate dangers to public health and safety, (3) the demolition of structures determined to be stiTicturally unsound or unfit for human habitation and which constitute a public nuisance and serious hazard to the public health and safety, (4) the establishment of temporary public playgrounds on vacant land within the area, and (5) the improvement of garbage and trash collection, street cleaning, and similar activities. The Secretary shall encourage, wherever feasible, the employment of otherwise unemployed or underemployed residents of the area in carrying out the activities and undertakings assisted under this section. The provisions of sections 101(c), 106, and 114 shall be applicable to activities and undertakings assisted under ^^ ^*^'- ^2^' this section to the same extent as if such activities and undertakings 73 stat! 788.' were being carried out in an urban renewal area as part of an urban tl^f^^}'*^^' renewal project." 1456, 1465. UTILIZATION OF LOCAL PRIVATE NONPROFIT AGENCIES FOR REHABILITATION GRANTS IN CODE ENFORCEMENT AREAS

SEC. 515. Section 117 of the Housing Act of 1949 is amended by inserting the following before the period at the end thereof: ": Protuded, That the Secretary may, in addition to authorizing a local public agency to make grants as prescribed in section 115, make such grants through the utilization of local private nonprofit agencies".

^^ ^*^^ '•^s. "^^ ^^^ ^^*'* '^^ "^^ ^''^^

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[82 STAT.

RELOCATION PAYMENTS

78 sm- 788^

^^ Tsr ^^°

SEC. 516. Section 114(c) of the Housing Act of 1949 is amended— (1) by striking out the first sentence of paragraph (2) and inserting in lieu thereof the following: ''In addition to any amount under paragraph (1), a local public agency may pay to or on behalf of any displaced family, displaced individual sixtytwo years of age or over, or displaced handicapped individual, monthly payments over a period not to exceed twenty-four months in an amount not to exceed $500 in the first twelve months and $500 in the second twelve months to assist such displaced family or individual to secure a decent, safe, and sanitary dwelling."; (2) by striking out "relocation adjustment" in the second sentence of paragraph (2) and inserting in lieu thereof "additional"'; (8) by striking out the second proviso in paragraph (2) and inserting in lieu thereof the following: ": Provided further, That additional payments under this paragraph may be paid on a lump sum or other than monthly basis in cases in which the small size of the payments that would otherwise be required do not warrant a number of separate payments or in other cases in which other than monthly payments are determined warranted by the Secretary: And provided further. That no payment received under this paragraph shall be considered as income for the purpose of determining the eligibility or the extent of eligibility of any per^^^ ^^^ assistance under the Social Security Act or any other Federal Act"; and (4) by inserting a new paragraph (8) as follows: "(3) In addition to any amount under paragraph (1), a local public agency may make a payment to a displaced family or individual, who does not receive the additional payment authorized under paragraph (2) and who is the owner of real property which is acquired for a project assisted under this title and which is improved by a single- or two-family dwelling occupied by the owner for a period of not less than one year prior to the initiation of negotiations for the acquisition of such property. Such payment, not to exceed $5,000, shall be an amount which, when added to the acquisition payment, equals the average price required for a decent, safe, and sanitary dwelling of modest standards adequate in size to accommodate the displaced owner, reasonably accessible to public services and places of employment and available on the private market: Provided, That such payment may be made only to a displaced owner who purchases and occupies a dwelling within one year subsequent to the date on which he is required to move from the dwelling acquired for the project: Provided further, That no such payment may be made if the owner-occupant receives a payment required by the State law of eminent domain which is determined by the Secretary to have substantially the same purpose and effect as this j^aragraph and to be part of the cost of the project for which Federal financial assistance is available." TITLE VI — U R B A N P L A N N I N G AN D F A C I L I T I E S COMPREHENSIVE PLANNING

73 Stat. 678.

40 USC 461.

SRC. 601. Section 701 of the Housing Act of 1954 is amended to read j; n '^ as follows: " C O M P R E H E N S IV E PLANNING

"SEC. 701. (a) I n order to assist State and local governments in solving planning problems, including those resulting from the increasing concentration of population in metropolitan and other urban areas

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and the out-migration from and lack of coordinated development of resources and services in rural areas; to facilitate comprehensive planning for urban and rural development, including coordinated transportation systems, on a continuing basis by such governments; and to encourage such governments to establish and improve planning staffs and techniques on an area wide basis, and to engage private consultants where their professional services are deemed appropriate by the assisted governments, the Secretary is authorized to make planning grants to— "(1) State planning agencies for the provision of planning assistance to (A) cities and other municipalities having a population of less than 50,000 according to the latest decennial census, and counties without regard to population: Provided, That grants shall be made under this paragraph for planning assistance to counties having a population of 50,000 or more, according to the latest decennial census, which are within metropolitan areas, only if (i) the Secretary finds that planning and plans for such county will be coordinated with the program of comprehensive planning, if any, which is being carried out for the metropolitan area of which the county is a part, and (ii) the aggregate amount of the grants made subject to this proviso does not exceed 15 per centum of the aggregate amount appropriated, after September 2, 1964, for the purposes of this section, (B) any group of adjacent communities, either incorporated or unincorporated, having a total population of less than 50,000 according to the latest decennial census and having common or related urban planning problems, (C) cities, other municipalities, and counties referred to in paragraph (3) of this subsection, and areas referred to in paragraph (4) of this subsection, and (D) Indian reservations; "(2) State, metropolitan, and regional planning agencies for metropolitan or regional planning, and to cities, within metropolitan areas, for planning which is part of comprehensive metropolitan planning and which shall supplement and be coordinated with State, metropolitan, and regional planning; " (3)(A) economic development districts designated by the Secretary of Commerce under title IV of the Public Works and Economic Development Act of 1965, and ^^ s*^'- s^o" (B) cities, other municipalities, and counties which (i) are a m ancfnote.^ situated in redevelopment areas or economic development districts desigriated by the Secretary of Commerce under title IV of the Public Works and Economic Development Act of 1965, or (ii) have suffered substantial damage as a result of catastrophe which the President, pursuant to section 2(a) of the Act entitled 'An Act to authorize Federal assistance to States and local governments in major disasters, and for other purposes', approved September 30, 1950, as amended (42 U.S.C. 1855a), has determined ^4 Stat. 1109. to be a major disaster; "(4) official governmental planning agencies for areas where rapid urbanization has resulted or is expected to result from the establishment or rapid and substantial expansion of a Federal installation, or for areas where rapid urbanization is expected to result on land developed or to be developed as a new community approved under section 1004 of the National Housing Act or title ^° s*^*- 1271. IV of the Housing and Urban Development Act of 1968; in/^^^.Vu""^' "(5) States for State and interstate comprehensive planning and for research and coordination activity related thereto, including technical and other assistance for the establishment and operation of intrastate and interstate planning agencies;

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40 USC I p 1 79 Stat. 55 2. 42 USC 3121

note

72 Stat. 913.

PUBLIC LAW 90-448-AUG. 1, 1968

[82 STAT.

" (6) State planning agencies for assistance to district planning, or planning for areas within districts, carried on by or for district planning agencies; "(7) metropolitan and regional planning agencies, with the approval of the State planning agency or (in States where no such planning agency exists) of the Governor of the State, for the provision of planning assistance within the metropolitan area or region to cities, other municipalities, counties, groups of adjacent communities, or Indian reservations described in clauses (A), (B), (C), and (D) of paragraph (1) of this subsection; " (8) official governmental planning agencies for any area where there has occurred a substantial reduction in employment opportunities as the result of (A) the closing (in whole or in part) of a Federal installation, or (B) a decline in the volume of Government orders for the procurement of articles or materials produced or manufactured in such area; "(9) tribal planning councils or other tribal bodies designated by the Secretary of the Interior for planning for an Indian reservation; "(10) the various regional commissions established by the Appalachian Regional Development Act of 1965 or under the Public Works and Economic Development Act of 1965 for comprehensive planning for the regions established under such Acts (or State agencies or instrumentalities participating in such planning); and "(11) local development districts, certified under section 801 of the Appalachian Regional Development Act of 1965, for comprehensive planning for their entire areas, or for metropolitan planning, urban planning, county planning, or small municipality planning within such areas in the Appalachian region, and for planning for Appalachian regional programs. Planning assisted under this section shall, to the maximum extent feasible, cover entire areas having common or related development problems. The Secretary shall encourage cooperation in preparing and carrying out plans among all interested municipalities, political subdivisions, public agencies, and other parties in order to achieve coordinated development of entire areas. To the maximum extent feasible, pertinent plans and studies already made for areas shall be utilized so as to avoid unnecessary repetition of effort and expense. Planning which may be assisted under this section includes the preparation of comprehensive transportation surveys, studies, and plans to aid in solving problems of traffic congestion, facilitating the circulation of people and goods in metropolitan and other areas and reducing transportation needs. Planning carried out with assistance under this section shall also include a housing element as part of the preparation of comprehensive land use plans, and this consideration of the housing needs and land use requirements for housing in each comprehensive plan shall take into account all available evidence of the assumptions and statistical bases upon which the projection of zoning, community facilities, and population growth is based, so that the housing needs of both the region and the local communities studied in the planning will be adequately covered in terms of existing and prospective in-migrant population growth. Funds available under this section shall be in addition to and may be used jointly with funds available for planning surveys and investigations under other federally aided programs, and nothing contained in this section shall be construed as affecting the authority of the Secretary of Transporta^j^^j^ under section 307 of title 23, United States Code.

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STAT.]

PUBLIC LAW 90-448-AUG. 1, 1968

" (b) A planning grant made under subsection (a) shall not exceed two-thirds of the estimated cost of the work for which the grant is made: Provided, That such a grant may be made for up to 75 per centum of such estimated cost when made for planning primarily for (1) redevelopment areas, local development districts, or economic development districts, or portions thereof, described in paragraph (8) (A) and (B)(i) and paragraph (11) of subsection (a), (2) areas described in subsection (a)(8), and (3) the various regions, as described in subsection (a) (10). All grants made under this section shall be subject to terms and conditions prescribed by the Secretary. No portion of any grant made under this section shall be used for the preparation of plans for specific public works. The Secretary is authorized, notwithstanding the provisions of section 3648 of the Revised Statutes, as amended, to make advance or progress payments on account of any grant made under this section. There are authorized to be appropriated for the purposes of this section not to exceed $265,000,000 prior to July 1, 1969, and not to exceed $;^90.000,fX)0 prior to July 1, 1970. Of the amount available prior to July 1, 1969, $20,000,000 may be used only for district planning gi-^nts under subsection (a)(6), which amount shall be increased by $10,000,000 on July 1, 1969. Any amounts appropriated under this section shall remain available until expended: Provided. That, of any funds appropriated under this section, not to exceed an aggregate of $10,000,(X)0 plus 5 per centum of the funds so appropriated may be used by the Secretary for studies, research, and demonstration projects, undertaken independently or by contract, for the development and improvement of techniques and methods for comprehensive planning and for the advancement of the purposes of this section, and for grants to assist in the conduct of studies and research relating to needed revisions in State statutes which create, govern, or control local governments and local governmental operations. "(c) The Secretary is authorized, in areas embracing several municipalities or other political subdivisions, to encourage planning on a unified regional, district, or metropolitan basis and to provide technical assistance for such planning and the solution of problems relating thereto. " (d) I t is the further intent of this section to encourage comprehensive planning, including transportation plaiming, for States, cities, counties, metropolitan areas, districts, regions, and Indian reservations and the establishment and development of the organizational units needed therefor. In extending financial assistance under this section, the Secretary may require such assurances as he deems adequate that the appropriate State and local agencies are making reasonable progress in the development of the elements of comprehensive planning. The Secretary is authorized to provide technical assistance to State and local governments and their agencies and instrumentalities, and to Indian tribal bodies, undertaking such planning and, by contract or otherwise, to make studies and publish information on related problems. "(e) I n the exercise of his responsibilities under this section, the Secretary shall consult with those officials of the Federal Government responsible for the administration of programs of Federal assistance to the States and municipalities for various categories of public facilities and other comprehensively planned activities. He shall, particularly, consult with the Secretary of Agriculture prior to his approval of any district planning grants under subsections (a)(6) and (g), and with the Secretary of Commerce prior to his approval of any planning grants which include any part of an economic development district as defined and designated under the Public Works and Eco-

529

31 USC 529. Appropriation.

Consultation with other Government officials.

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 530 79 Stat. 552. 42 USC 3121 note.

Interstate compacts.

Historical s i t e s and structures, study.

80 Stat. 915. 16 USC 470a.

Definitions.

PUBLIC LAW 90-448-AUG. 1, 1968

[82 STAT.

iiomic Development Act of 1965. The Secretary of Agriculture and the Secretary of Commerce, as appropriate, may provide technical assistance, with or without reimbursement, in connection with the establishment of districts by the Secretary of Housing and Urban Development and the carrying out of planning by such districts. "(f) The consent of the Congress is hereby given to any two or more States to enter into agreements or compacts, not in conflict with any law of the United States, for cooperative effort and mutual assistance in the comprehensive planning for the growth and development of interstate, metropolitan, or other urban areas, and to establish such agencies, joint or otherwise, as they may deem desirable for making effective such agreements and compacts. " (g) I n addition to the planning grants authorized by subsection (a), the Secretary is further authorized to make grants to organizations composed of public officials representative of the political jurisdictions within the metropolitan area, region, or district for the purpose of assisting such organizations to undertake studies, collect data, develop metropolitan, regional, and district plans and programs, and engage m such other activities, including implementation of such plans, as the Secretary finds necessary or desirable for the solution of the metropolitan, regional, or district problems in such areas, regions, or districts. To the maximum extent feasible, all grants under this subsection shall be for activities relating to all the developmental aspects of the total metropolitan area, region, or district including, but not limited to, land use, transportation, housing, economic development, natural resources development, community facilities, and the general improvement of living environments. A grant under this subsection shall not exceed two-thirds of the estimated cost of the work for which the grant is made. " (h) I n addition to the other grants authorized by this section, the Secretary is authorized to make grants to assist any city, other municipality, or county in making a survey of the structures and sites in such locality which are determined by its appropriate authorities to be of historic or architectural value. Any such survey shall be designed to identify the historic structures and sites in the locality, determine the cost of their rehabilitation or restoration, and provide such other information as may be necessary or appropriate to serve as a foundation for a balanced and effective program of historic preservation in such locality. The aspects of any such survey which relate to the identification of historic and architectural values shall be conducted in accordance with criteria found by the Secretary to be comparable to those used in establishing the national register maintained by the Secretary of the Interior under other provisions of law; and the results of each such survey shall be made available to the Secretary of the Interior. A grant under this subsection shall not exceed two-thirds of the cost of the survey for which it is made, and shall be made to the appropriate agency or entity specified in paragraphs (1) through (11) of subsection (a) or, if there is no such agency or entity which is qualified and willing to receive the grant and provide for its utilization in accordance with this subsection, directly to the city, other municipality, or county involved. "(i) As used in this section— " (1) The term 'metropolitan area' means a standard metropolitan statistical area, as established by the Bureau of the Budget, subject, however, to such modifications or extensions as the Secretary deems to be apnropriate for the purposes of this section. "(2) The term 'region' includes (A) all or part of the area of jurisdiction of one or more units of general local government, and (B) one or more metropolitan areas.

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"(3) The term 'district' includes all or part of the area of jurisdiction of (A) one or more counties, and (B) one or more other units of g-eneral local government, but does not include any portion of a metropolitan area. ''(4) The term 'comprehensive planning' includes the following: " (A) preparation, as a guide for governmental policies and action, or general plans with respect to (i) the pattern and intensity of land use, (ii) the provision of public facilities (including transportation facilities) and other government services, and (iii) the effective development and utilization of human and natural resources; " (B) long-range physical and fiscal plans for such action; " (C) programing of capital improvements and other major expenditures, based on a determination of relative urgency, together with definite financing plans for such expenditures in the earlier years of the program; " (I)) coordination of all related plans and activities of the State and local governments and agencies concerned; and " (E) preparation of regulatory and administrative measur-es in support of the foregoing. (Comprehensive planning for the purpose of districts shall not include planning for or assistance to establishments in relocating from one area to another or assist subcontractors whose purpose is to divest, or whose economic success is dependent upon divesting, other contractors or subcontractors of contracts theretofore customarily performed by them: Provided, That this limitation shall not be construed to prohibit assistance for the expansion of an existing business entity through the establishment of a new branch, affiliate, or subsidiary of such entity, if the Secretary finds that the establishment of such branch, affiliate, or subsidiary will not result in an increase in unemployment in the area of original location or in any other area where such entity conducts business operations, unless the Secretary has reason to believe that such branch, affiliate, or subsidiary is being established with the intention of closing down the operations of the existing business entity in the area of its original location or in any other area where it conducts such operations. "(5) The term 'State planning agencies' includes official State planning agencies and (in States where no such planning agency exists) agencies or instrumentalities of State government designated by the Governor of the State and acceptable to the Secretary. "(6) The terms 'metropolitan planning agencies', 'regional planning agencies', and 'district planning agencies' mean official metropolitan, regional, and district planning agencies, or other agencies and instrumentalities designated by the Governor (or Governors in the case of interstate planning), and acceptable to the Secretary, empowered under State or local law or interstate compact to perform metropolitan, regional, or district planning, respectively: Provided, That such agencies and instrumentalities shall, to the greatest practicable extent, be composed of or responsible to the elected officials of the unit or units of general local government for whose jurisdictions they are empowered to engage in planning." PLANNED AREA WIDE DEVELOPMENT

SEC. 602. (a) The heading of title II of the Demonstration Cities and Metropolitan Development Act of 1966 is amended to read as follows: " TITLE II — P L A N N E D A R E A W I D E DEVELOPMENT". (b) Section 201 of such Act is amended to read as follows: ^ '

?? E*f'- ^^^^ 42 USC 3331.

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[82 STAT.

"FINDINGS AND DECLARATION OF PURPOSE

80 Stat. 1261. 42 USC 3332. 42 USC 3335.

42 USC 3338.

42 USC 3336.

"SEC. 201. (a) The Congress hereby finds that the welfare of the Xation and of its people is directly dependent upon the sound and orderly development and the effective organization and functioning of our State and local governments. " I t further finds that it is essential that our State and local governments prepare, keep current, and carry out comprehensive plans and jirograms for their orderly physical development with a view to meeting efficiently all their economic and social needs. " I t further finds that our State and local governments are especially handicapped in this task by the complexity and scope of governmental services required, the multiplicity of political jurisdictions and agencies involved, and the inadequacy of the operational and administrative arrangements available for cooperation among them. "It further finds that present requirements for areawide planning and programing in connection with various Federal programs have materially assisted in the solution of areawide problems, but that greater coordination of Federal programs and additional participation and cooperation are needed from the States and localities in perfecting and carrying out such efforts. " (b) It is the purpose of this title to provide through greater coordination of Federal programs, and through supplementary grants for certain federally assisted development projects, additional encouragement and assistance to States and localities for making comprehensive areawide planning and programing effective."" (c) Section 202 of such Act is amended by striking out "metropolitan'* each place it appears and inserting in lieu thereof "areawide". (d)(1) Section 205 of such Act is amended by striking out "metropolitan development" each pla(^ it appears and inserting in lieu thereof "areawide develo))ment. (2) Such section is further amended by striking out "metropolitan areas and "metropolitan area and inserting in lieu thereof "areas and "area", respectively. (B) Such section is further amended by striking out "metropolitanwide" each place it appears, and inserting in lieu thereof "areawide. (4) Such section is further amended by striking out "metropolitan planning" each place it appears and inserting in lieu thereof "areawide planning. (5) Such section is further amended by inserting "where appropriate, after " (B) " in subsection (c)(1). (6) Such section is further amended by striking out "within the metropolitanwide area" in subsection (f). (e)(1) Paragraphs (1) and (2) of section 208 of such Act are amended by striking out "Metropolitan and inserting in lieu thereof "Areawide. (2) Paragraph (7) of such sectitm is amended— (A) by striking out "or metropolitan or regional and inserting in lieu thereof ", metropolitan, regional, or district''; and (B) by striking out "metropolitan"' in the parenthetical phrase, (f) Section 206(b) of such Act is amended by striking out the second sentence and inserting in lieu thereof the following: "Any amounts appropriated under this section shall remain available untd expended, and any amounts authorized for any fiscal year under this section but not appropriated may be appropriated for any succeeding fiscal year commencing prior to July 1, 1970."

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ADVAXCE ACQUISITION OF LAND

SEC. 603. (a) Section 701 of the Housing and Urban Development Act of 1965 is amended by striking out "in connection with the future construction of public works and facilities'' in clause (3) and inserting in lieu thereof "m the future for public purposes". (b) Section 704 of such Act is amended to read as follows:

^^ s*^*- ^^^''2 USC 3104.

" A D V A N C E ACQUISITION OF LAND

"SEC. 704. (a) In order to encourage and assist the timely acquisition of land planned to be utilized in the future for public purposes, the Secretary is authorized to make grants to States and local public bodies and agencies to assist in financing the acquisition of a fee simple estate or other interest in such land. "(b) The amount of any grant made under this section shall not exceed the aggregate amount of reasonable interest charges on the loans or other financial obligations incurred to finance the acquisition of such land for a period not in excess of the lesser of (1) five years from the date of acquisition of such land or (2) the period of time between the date on which the land was acquired and the date its use began for the purpose for which it was acquired: Provided. That where all or any portion of the cost of such land is not financed through -borrowings, the amount of the grant shall be computed on the basis of the aggregate amount of reasonable interest charges that the Secretary , determines would have been required. "(c) No grant shall be made under this section unless the Secretary . determines that the laud will be utilized for a public purpose within a reasonable period of time and that such utilization will contribute to economy, efficiency, and the comprehensively planned development of the area. The Secretary shall in all cases require that land acquired with the assistance of a grant under this section be utilized for a public purpose within five years after the date on which a contract to make such grant is entered into, unless the Secretary (1) determines that due to unusual circumstances a longer period of time is necessary and in the public interest, and (2) reports such detennination promptly to g rReportatocomcon ession l the Committees on Banking and C urrency 01 the Senate and House of m i t t e e s. Representatives. " (d) No land acquired with assistance under this section shall, without approval of the Secretary, be diverted from the purpose originally approved. The Secretary shall approve no such diversion unless he finds that the diversion is in accord with the then applicable comprehensive plan for the area. In cases of a diversion of land to other than a public purpose, the Secretary may require repayment of the grant, or suD^titution of land of approximately equal fair market value, whichever he deems appropriate. An interim use of the land for a public or private purpose in accordance with standards prescribed by the Secretary, or approved by him, shall not constitute a diversion within the meaning of this subsection. "(e) Notwithstanding any other provision of law, no project for which land is acquired with assistance under this section shall, solely as a result of such advance acquisition, be considered ineligible for the purpose of any other Federal loan or grant program, and the amount of the purchase price paid for the land by the recipient of a grant under this section may he considered an eligible cost for the purpose of such other Federal loan or grant program."'

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[82 STAT.

WATER A N D SEWER F A C I L I T I E S PROGRAM

79 Stat. 490. 42 USC 3102.

ff*^

SEC. 604. (a) Section 702(c) of the Housing and Urban Development Act of 1965 is amended by striking out "July 1, 1968" and inserting in lieu thereof "October 1, 1969". (b) Section 702(b) of such Act is amended— (1) by striking out "a basic public sewer facility"' and inserting in lieu thereof "a basic public water or sewer facility"; and (2) by striking out "a public or other adequate sewer facility'' and inserting in lieu thereof "a public or other adequate water or sewer facility". (c) Section 702 of such Act is amended by adding at the end thereof a new subsection as follows: " (d) I n the administration of this section the Secretary shall require that, to the greatest extent practicable, new job opportunities be provided for unemployed or underemployed persons in connection with projects the financing of which is assisted under this section." AUTHORIZATION S FOR THE WATER AND SEWER F A C I L I T I E S, NEIGHBORIKK)D F A C I L I T I E S. AND ADVANCE ACQUISITION OF LAND PROGRAMS

42 USC 3108.

SEC. 605. (a) Section 708(b) of the Housing and Urban Development Act of 1965 is amended by striking out "July 1, 1969'' and inserting in lieu thereof "July 1, 1970". (b) Section 708(a) of such Act is amended— (1) by striking out "$200,000,000 for grants under section 702" and inserting in lieu thereof "$20<),0(X),000 (or $350,000,000 in the case of the fiscal year commencing July 1, 1968) for grants under sections 702"; and (2) by adding at the end thereof the following new sentence: "In addition, there is authorized to be appropriated for grants under section 702 not to exceed $115,000,000 for the fiscal year commencing July 1, 1969." OPEN-SPACE LAND

75 Stat. 184. 42 USC 1500a.

75 Stat. 185; 79 Stat. 495, 497; 80 Stat. 1280. 42 USC 1500d.

PROGRAM

SEC. 606. (a) Section 702(b) of the Housing Act of 1961 is amended to read as follows: " (b) There are authorized to be appropriated, for the purpose of making grants under this title, not to exceed $310,000,0(K) prior to July 1, 1969, and not to exceed $460,000,000 prior to July 1, 1970. Any amounts appropriated under this section shall remain available until expended." (b) Section 708(b) of such Act is amended by striking out "$50,000"' and inserting in lieu thereof "$125,000". AUTHORIZATION TO M A K E F E A S I B I L I T Y STUDIES I N THE P U B L I C P L A N N I N G ADVANCr>S PROGRAM

69 Stat. 6 4 1. 40 USC 462.

WORKS

SEC. 607. Section 702(a) of the Housing Act of 1954 is amended by inserting after "to aid in financing the cost o f the following: "feasibility studies,". TITLE VII — U R B A N MASS T R A N S P O R T A T I O N GRANT

78 Stat. 304; 80 Stat. 715. 49 USC 1603.

AUTHORIZATIONS

SEC. 701. (a) Section 4(b) of the Urban Mass Transportation Act of 1964 is amended (1) by striking out the word "and" where it first appears in the first sentence, and (2) by inserting before the period at the end of the first sentence "; and $190,000,000 for fiscal year 1970".

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(b) Section 6(c) of such Act is amended (1) by striking out "$50,- oJL^l^^j^i'^^'' 000,000" and inserting in lieu thereof "$56,000,000", and (2) by in- 49 USC 1605. serting at the end thereof the following: "On or after July 1, 1969, the Secretary may make available to finance projects under this section such additional sums out of the grant authorization provided in section 4(b) as he deems appropriate." DEFINITION O F MASS TRANSPORTATION

SEC. 702. Section 12(c)(5) of the Urban Mass Transportation Act of 1964 is amended to read as follows: y/stlt^^so^r^' "(5) the term 'mass transportation' means transportation by go Stat. 715.' bus, rail, or other conveyance, either publicly or privately owned, 49 USC leos. which provides to the public general or special service (but not including school buses or charter or sightseeing service) on a regular and continuing basis." E X T E N S I O N OF E M E R G E N C Y PROGRAM U N D E R THE URBAN MASS TRANSPORTATION ACT

SEC. 708. Section 5 of the Urban Mass Transportation Act of 1964 ^^^l^H^^^^f^' is amended by striking out "November 1, 1968" and inserting in lieu 49 USC 1604 thereof "July 1, 1970". N O N - FEDERAL S H A R E OF N E T P R O J E C T COST

SEC. 704. (a) Section 4(a) of the Urban Mass Transportation Act 78 Stat. 304. of 1964 is amended by striking out the last sentence and inserting in 49 USC 1603. lieu thereof of following: "The remainder of the net project cost shall be provided, in cash, from sources other than Federal funds. Not more than 50 per centum of such remainder may be provided from other than public sources, and any public or private transit system funds shall be provided solely from undistributed cash surpluses, replacement or depreciation funds or reserves available in cash, or new capital; except that in cases of demonstrated fiscal inability of an applicant actively engaged in preparing and effectuating a program for a unified or officially coordinated urban transportation system as part of the comprehensively planned development of the urban area, such remainder may be provided from other than public sources. No refund or reduction of the remainder of the net project cost shall be made at any time unless there is at the same time a refund of a proportional amount of the Federal grant." (b) Section 5 of such Act is amended by striking out the last sen- '^^ ^^^ ^^^^"^ tence and inserting in lieu thereof the following: "The remainder of the net project cost shall be provided, in cash, from sources other than Federal funds. Not more than 50 per centum of such remainder may be provided from other than public sources, and any public or private transit system funds shall be provided solely from undistributed cash surpluses, replacement or depreciation funds or reserves available in cash, or new capital; except that in cases of demonstrated fiscal inability of an applicant actively engaged in preparing and effectuating a program for a unified or officiallj^ coordinated urban transportation system as part of the comprehensively planned development of the urban area, such remainder may be provided from other than public sources. No refund or reduction of the remainder of the net project cost shall be made at any time unless there is at the same time a refund of a proportional amount of the Federal grant."

9B-Knn r> -

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[82 STAT.

TITLE VIII—SECONDARY MORTGAGE MARKET PURPOSES

Federal National Mortgage Association. 68 Stat. 615. 12 USC 1719. Government National Mortgage Association.

12 USC 1720, 1721.

SEC. 801. The purposes of this title include the partition of the Federal National Mortgage Association as heretofore existing into two separate and distinct corporations, each of which shall have continuity and corporate succession as a separated portion of the previously existing corporation. One of such corporations, to be known as Federal National Mortgage Association, will be a Government-sponsored private corporation, will retain the assets and liabilities of the previously existing corporation accounted for under section 304 of the Federal National Mortgage Association Charter Act, and will continue to operate the secondary market operations authorized by such section 304. The other, to be known as Government National Mortgage Association, will remain in the Government, will retain the assets and liabilities of the previously existing corporation accounted for under sections 305 and 306 of such Act, and will continue to operate the special assistance functions and management and liquidating functions authorized by such sections 305 and 306. AMENDMENTS TO THE FEDERAL NATIONAL MORTGAGE ASSOCIATION CHARTER ACT

68 Stat. 612. 12 USC 1716.

12 USC 1717.

SEC. 802. (a) The heading of title III of the National Housing Act is amended by striking out " FEDERAL N A T I O N A L M O R T G A G E ASSOCIATION " and inserting in lieu thereof " N A T I O N A L MORTGAGE ASSOCIATIONS". (b) Section 301 of such Act is amended— (1) by striking out "in the Federal GoveiTiment a"; (2) by striking out "facility for" and inserting in lieu thereof "facilities for"; (3) by striking out "of such facility" and inserting in lieu thereof "thereof"; (4) by striking out "facility to " and inserting in lieu thereof "facilities to "; and (5) by striking out "the existing mortgage portfolio of the Federal National Mortgage Association" and inserting in lieu thereof "federally owned mortgage portfolios". (c) Section 302(a) of such Act is amended— (1) by inserting " (1) " immediately following " (a) "; (2) by striking out "(hereinafter referred to as the 'Associat i o n ') "; and (3) by adding at the end thereof the following new paragraph: " (2) On the effective date established pursuant to section 808 of the Housing and Urban Development Act of 1968, the body corporate described in the foregoing paragraph shall cease to exist in that form and is hereby partitioned into two separate and distinct bodies corporate, each of which shall have continuity and corporate succession as a separated portion of the previously existing body corporate, as follows: " (A) One of such separated portions shall be a body corporate without capital stock to be known as Government National Mortgage Association (hereinater referred to as the 'Association'), which shall be in the I>epartment of Housing and Urban Development and which shall retain the assets and liabilities acquired and incurred under sections 305 and 306 prior to such effective date, including any and all liabilities incurred pursuant to section 302(c). The Association shall have succession until dissolved by Act of Congress. I t shall maintain its principal office in the District of Columbia and shall be deemed, for purposes of venue in civil actions, to be a resident thereof. Agencies or

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offices may be established by the Association in such other place or places as it may deem necessary or appropriate in the conduct of its business. " (B) The other such separated portion shall be a body corporate to be known as Federal National Mprtgage Association (hereinafter referred to as the 'corporation'), which shall retain the assets and liabilities acquired and incurred under sections 303 and 304 prior to ^^ ^^^ ^J;^such effective date. The corporation shall have succession until dis- 1719. solved by Act of Congress. I t shall maintain its principal office in the District of Columbia and shall be deemed, for purposes of venue in civil actions, to be a resident thereof." (d) Section 302(b) of such Act is amended— 12 USC 1717. (1) b ^ striking out "the Association is authorized"' and inserting in lieu thereof "each of the bodies corporate hamed in subsection (a)(2) is authorized"; (2) by striking out "lend (under section 304) on the security (3) by inserting immediately before the colon in the first sentence "; and the corporation is authorized to lend on the security of any such mortgages and to purchase, sell, or otherwise deal in any securities guaranteed by the Association under section 306(g)"; and (4) by striking out "no mortgage may be purchased" and inserting in lieu thereof "the Association may not purchase any mortgage". (e) Section 302(c)(1) of such Act is amended by striking out ", consistent with section 307,". (f) Section 3 0 2 (c)(2)(C) of such Act is amended to read as follows: " (C) The Department of Housing and Urban Development." (g) Section 302(c)(2) of such Act is amended by striking out "incurred by the Federal National Mortgage" and inserting in lieu thereof "incurred by the". (h) The heading of section 303 of such Act is amended to read as

78 Stat. soo.

follows: "CAPITALIZATION—FEDERAL NATIONAL MORTGAGE ASSOCIATION".

(i) Section 303(a) of such Act is amended— ^,0^*0^ ^ih 12 USC '"'° (1) by striking out "nonvoting common stock" and inserting in '^ ""'^ 1718. lieu thereof "common stock, without par value, which shall be vested with all voting rights, each share being entitled to one vote with rights of cumulative voting at all elections of directors"; (2) by striking out "nonvoting preferred stock" and inserting in lieu thereof "nonvoting preferred stock, with a par value of $100 per share,"; (3) by striking out the second and third sentences thereof and inserting in lieu thereof "The free transferability of the common stock at all times to any person, firm, corporation, or other entity shall not be restricted except that, as to the corporation, it shall be transferable only on the books of the corporation."; (4) by striking out "of the capital surplus and the general surplus accounts"; (5) by striking out "retire" and inserting in lieu thereof "retire, at par,"; and (6) by striking out "the Association shall deem feasible" and inserting in lieu thereof "possible subsequent to the effective date established pursuant to section 808 of the Housing and Urban Development Act of 1968". (j) Section 303(b) of such Act is amended— (1) by striking out "for its services" and inserting in lieu thereof ", which may be regarded as elements of pricing,"; and

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12 us^c tns

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PUBLIC LAW 90-448-AUG. 1, 1968

(2) by striking out the last sentence. (^) Section 303(c) of such Act is amended— (1) by striking out "(only in denominations of $100 or multiples thereof)"; (2) by inserting immediately after the first sentence the following: " I n addition to the shares of common stock issued under the foregoing sentence, the corporation may issue additional shares in return for appropriate payments into capital or capital and surplus. The corporation shall at all times require each servicer of its mortgages to own a minimum amount of common stock of the corporation, measured by its stated value. Such minimum amount shall not exceed 2 per centum, as determined from time to time by the corporation with the approval of the Secretary of Housing and LTrban Development, of the aggregate outstanding principal balances of all mortgages of the corporation which have been purchased subsequent to the effective date established pursuant to section 808 of the Housing and Urban Development Act of 1968 and which are then serviced by such servicer for the corporation."; and (3) by striking out "the general surplus account of the Association shall not be reduced through the payment of dividends applicable to such common stock which exceed in the aggregate 5 per centum of the par value of the outstanding common stock of the Association" and inserting in lieu thereof "the aggregate amount of cash dividends paid on account of any share of such stock shall not exceed any rate which may be determined from time to time by the Secretary of Housing and Urban Development to be a fair rate of return after consideration of the current earnings and capital condition of the corporation". (1) Section 303(d) of such Act is amended by striking out "$22-5,000,000" and inserting in lieu thereof "$225,000,000; but no such stock may be issued subsequent to the effective date established pursuant to section 808 of the Housing and Urban Development Act of 1968". (m) Section 303(f) of such Act is amended by striking out "contributions, and" inserting in lieu thereof "contributions, to purchase additional shares of such stock, and". (n) Section 303(g) of such Act is repealed. (o) The heading of section 304 of such Act is amended to read as f o l l o w s: "SECONDARY M A R K E T OPERATIONS GAGE ASSOCIATION".

68 Stat. 615; ^^2 USC ^m9.

12 USC 1720.

[82 STAT.

FEDERAL NATIONAL MORT-

(p) Section 304(a)(1) of such Act is amended by striking out "and ^1"^^ Association shall not purchase any mortgage insured or guaranteed prior to the effective date of the Housing Act of 1954". (q) Section 304(b) of such Act is amended by striking out "earnings and in" and inserting in lieu thereof "earnings unless a greater ratio shall be fixed at any time or from time to time by the Secretary of Housing and Urban Development. In". (r) Section 304(c) of such Act is amended by striking out " (1) all of the preferred stock of the Association held by the Secretary of the Treasury has been retired, or (2) ". (s) Sections 303 and 304 of such Act, as amended by the foregoing subsections of this section, are further amended— (1) by striking out "Association" each place it appears and inserting in lieu thereof, in each such place, "corporation"; and (2) by striking out "Association's each place it appears and inserting in lieu thereof, in each such place, "corporation's". (t) The heading of section 305 of such Act is amended to read as follows:

"SPECIAL

ASSISTANCE

MORTGAGE ASSOCIATION".

FUNCTIONS

GOVERNMENT

NATIONAL

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(u) The heading of section 306 of such Act is amended to read as follows:

"MANAGEMENT

AND

LIQUIDATING

FUNCTIONS

GOVERNMENT

68 Stat. eis. 12 USC 1721.

NATIONAL MORTGAGE ASSOCIATION".

(v) Subsections (a) and (b) of section 307 of such Act are repealed, (vv) Section 307 of such Act is further amended— (1) by striking out "SEC. 307."; (2) by striking out "(c) All of the benefits and burdens incident to the administration of" and inserting in lieu thereof the follow-

^^^^i,'

"SEC. 307. All of the benefits and burdens incident to the administration of"; and (3) by striking out "board of directors of the Association" and inserting in lieu thereof "Secretary of Housing and Urban Development". (x) The heading of section 308 of such Act is amended to read as follows: "MANAGEMENT".

(y) Section 308 of such Act is amended— 12 USC 1723. (1) by inserting " (a) " immediately following "308"; (2) by striking out the first two sentences and inserting in lieu thereof "All the powers and duties of the Government National Mortgage Association shall be vested in the Secretary of Housing and ITpban Development and the Association shall be administered under the direction of the Secretary."; (3) by striking out "the board shall determine" and inserting in lieu thereof "the Secretary shall determine"; (4) by striking out "Association. The chairman of the board" and inserting in lieu thereof "Association, and shall have power to adopt, amend, and repeal bylaws governing the performance of the fKJw ers and duties granted to or imposed upon it by law. The Secretary"; (5) by striking out "by the board of directors," and inserting in lieu thereof "by the Secretary,"; (6) by striking out the last sentence; and (7) by adding at the end thereof the following new subsection: FNMA, Board of "(b) The JFederal National Mortgage Association shall have a board Yl'^us'c 1723. of directors which shall consist of fifteen persons, one-third of whom shall be appointed annually by the President of the United States, and the remainder of whom shall be elected annually by the common stockholders. The board shall at all times have as members appointed by the President at least one person from the homebuilding industry, at least one person from the mortgage lending industry, and at least one person from the real estate industry. Each member of the board of directors shall be appointed or elected for a term ending on the date of the next annual meeting of the stockholders, except that any such member may be removed from office by the President for good cause. Any elective seat on the board which becomes vacant after the annual election of the directors shall be filled by the board, but only for the unexpired portion of the term. Any appointive seat which becomes vacant shall be filled by appointment of the President, but only for the unexpired portion of the term. Within the limitations of law and regulation, the board shall determine the general policies which shall govern the operations of the corporation, and shall have power to adopt, amend, and repeal bylaws governing the performance of the powers and duties g r a n t ^ to or imposed upon it by law. The board of directors shall select and effect the appointment of qualified persons to fill the offices of president and vice president, and such other offices as may be provided for in the bylaws. Any member of the board who is a full-time officer or employee of the Federal Government shall not, as such member, receive compensation for his services."

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