deal in residential or business property that might be appropriate for the relocating of displaced individuals, families, and business concerns; and (C) to assure the necessary coordination of relocation activities with other project activities and other planned or proposed governmental actions in the community which may affect the carrying out of the relocation program, particularly1 planned or proposed low-rent housing projects to be constructed in or near the urban renewal area.

(2)2 As a condition to further assistance after the enactment of this paragraph with respect to each urban renewal project involving the displacement of individuals and families, the Secretary shall require, within a reasonable time prior to actual displacement, satisfactory assurance by the local public agency that decent, safe, and sanitary dwellings as required by the first sentence of this subsection are available for the relocation of each such individual or family.

(3)3 Within one year after the date of the enactment of this paragraph, and every two years thereafter, the Secretary shall review each locality's relocation plan under this subsection and its effectiveness in carrying out such plan.

(d) No land for any project to be assisted under this title shall be acquired by the local public agency except after public hearing following notice of the date, time, place, and purpose of such hearing.

(e) No understanding with respect to, or contract for, the disposition of land within an urban renewal area shall be entered into by a local public agency unless the local public agency shall have first made public, in such form and manner as may be prescribed by the Secretary, (1) the name of the redeveloper, together with the names of its officers and principal members, shareholders and investors, and other interested parties, (2) the redeveloper's estimate of the cost of any residential redevelopment and rehabilitation, and (3) the redeveloper's estimate of rentals and sales prices of any proposed housing involved in such redevelopment and rehabilitation: Provided, That nothing in this subsection shall constitute a basis for contesting the conveyance of, or title to, such land.

5

(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 recogni

1 Sec. 305(a), Housing and Urban Development Act of 1965, Public Law 89–117 approved August 10, 1965, 79 Stat. 451, 475, added the words "particularly planned or proposed low-rent housing projects to be constructed in or near the urban renewal area." This par. (2) added by sec. 305(a), Housing and Urban Development Act of 1965, Public Law 89-117. approved August 10, 1965, 79 Stat. 451, 475.

This par. (3) added by sec. 209, Housing and Urban Development Act of 1969, Publle Law 91-152, approved December 24, 1969, 83 Stat. 379, 388.

Added by sec. 407. Housing Act of 1959, Public Law 86-372, approved September 23. 1959, 73 Stat. 654, 673.

Sec. 305(c) of the Housing and Urban Development Act of 1965 provided that the requirements Imposed by the amendments made by subsec. (a) of that section should not be applicable to any project which received Federal recognition prior to the date of the enactment of that Act (August 10, 1965).

Sec. 512, Housing and Urban Development Act of 1968, Public Law 90-488, approved Aug. 1. 1968, 82 Stat. 476, 524, amended subsection (f) to read as set forth in the text. As originally added by sec. 703(a). Demonstration Cities and Metropolitan Development Act of 1966. Public Law 89-754, approved Nov. 3, 1966, 80 Stat. 1255, 1281, subsection (f) read as follows:

"The redevelopment of the urban renewal area. unless such redevelopment is for predominantly nonresidential uses will provide a substantial number of units of standard housing of low and moderate cost and result in marked progress in serving the poor and disadvantaged people living in slum and blighted areas."

Sec. 703(b) of the Demonstration Cities and Metropolitan Development Act of 1966 provides that the requirements of subsec. 105(f) shall apply only in the case of contracts for loans or capital grants which are made with respect to urban renewal projects undertaken pursuant to urban renewal plans approved after the date of the enactment of that act (November 3, 1966).

tion 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 centum of the units in such projects, except that the Secretary may waive the requirement of 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 the preceding sentence to the Committees on Banking and Currency of the Senate and the House of Representatives.

(g) Consideration has been given to development of a sewer system to serve the urban renewal area which will, to the maximum extent feasible, provide for effective control of storm and sanitary wastes. (h) If any urban renewal project which receives Federal recognition after the date of the enactment of this subsection includes the demolition or removal of any residential structure or structures (whether or not it is a project taken into account for purposes of applying subsection (f)), there shall be provided in the area within which the local public agency has jurisdiction (by construction or rehabilitation) standard housing units for occupancy by low and modcrate income families (including but not limited to units provided under Federal- or State-assisted housing programs and including units of low-rent housing in private accommodations assisted under section. 23 of the United States Housing Act of 1937) at least equal in number to the number of units occupied by such families prior to the demolition or removal of such structure or structures: Provided, That the Secretary shall have authority where he deems it appropriate to take into account suitable housing outside such area for purposes of meeting the requirement of this subsection. If the Secretary finds that the percentage of vacancies for all existing housing units in the area within which the local public agency has jurisdiction is 5 per centum or greater, he may waive the requirements of this subsection to the extent that he determines there are existing standard housing units in such area which will be available for occupancy by low- and moderateincome families who are being displaced by the urban renewal project.

GENERAL PROVISIONS

SEC. 106. (a) In the performance of, and with respect to, the functions, powers, and duties vested in him by this title, the Secretary, notwithstanding the provisions of any other law, shall

(1) prepare annually and submit a budget program as provided for wholly owned Government corporations by the Government Corporation Control Act, as amended;

(2) maintain an integral set of accounts which shall be audited annually by the General Accounting Office in accordance with the principles and procedures applicable to commercial transactions as provided by the Government Corporation Control Act, as amended, and no other audit shall be required: Provided, That such financial transactions of the Secretary as the making of

Added by sec. 706, Demonstration Cities and Metropolitan Development Act of 1966, Public Law 89-754, approved November 3, 1966, 80 Stat. 1255, 1281.

Subsection (h) added by sec. 210, Housing and Urban Development Act of 1969, Public Law 91-152, approved December 24, 1969, 83 Stat. 379, 388.

1

advances of funds, loans, or grants and vouchers approved by the Secretary in connection with such financial transactions shall be final and conclusive upon all officers of the Government. (b) Funds made available to the Secretary pursuant to the provisions of this title shall be deposited in a checking account or accounts with the Treasurer of the United States. Receipts and assets obtained or held by the Secretary in connection with the performance of his functions under this title shall be available for any of the purposes of this title (except for grants pursuant to section 103 hereof), and all funds available for carrying out the functions of the Secretary under this title (including appropriations therefor, which are hereby authorized), shall be available, in such amounts as may from year to year be authorized by the Congress, for the administrative expenses of the Secretary in connection with the performance of such functions: Provided, That necessary expenses of inspections and audits, and of providing representatives at the site, of projects being planned or undertaken by local public agencies pursuant to this title shall be compensated by such agencies by the payment of fixed fees which in the aggregate will cover the costs of rendering such services, and such expenses shall be considered nonadministrative; and for the purpose of providing such inspections and audits and of providing representatives at the sites, the Secretary may utilize any agency and such agency may accept reimbursement or payment for such services from such local public agencies or the Secretary, and credit such amounts to the appropriations or funds against which such charges have been made.

(c) In the performance of, and with respect to, the functions, powers, and duties vested in him by this title, the Secretary, notwithstanding the provisions of any other law, may

(1) sue and be sued;

(2) foreclose on any property or commence any action to protect or enforce any right conferred upon him by any law, contract, or other agreement, and bid for and purchase at any foreclosure or any other sale, any project or part thereof in connection with which he has made a loan or capital grant pursuant to this title. In the event of any such acquisition, the Secretary may, notwithstanding any other provision of law relating to the acquisition, handling, or disposal of real property by the United States, complete, administer, dispose of, and otherwise deal with, such project or part thereof: Provided, That any such acquisition of real property shall not deprive any State or political subdivision thereof of its civil jurisdiction in and over such property or impair the civil rights under the State or local laws of the inhabitants on such property;

(3) enter into agreements to pay annual sums in lieu of taxes to any State or local taxing authority with respect to any real property so acquired or owned, and such sums shall approximate the taxes which would be paid upon such property to the State or local taxing authority, as the case may be, if such property were not exempt from taxation;

1 Sec. 417(1), Housing Act of 1959, Public Law 86-372, approved Sentember 23, 1959, 73 Stat. 654, 676, substituted "grants" for "capital grants".

(4) sell or exchange at public or private sale, or lease, real or personal property, and sell or exchange any securities or obligations, upon such terms as he may fix;

(5) obtain insurance against loss in connection with property and other assets held;

(6) subject to the specific limitations in this title, consent to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, security, amount of grant, or any other term, of any contract or agreement to which he is a party or which has been transferred to him pursuant to this title;

(7) include in any contract or instrument made pursuant to this title such other covenants, conditions, or provisions (including such covenants, conditions, or provisions as, in the determination of the Secretary, are necessary or desirable to prevent the payment of excessive prices for the acquisition of land in connection with projects assisted under this title) as he may deem necessary to assure that the purposes of this title will be achieved. No provision of this title shall be construed or administered to permit speculation in land holding; and

2

(8)1 make advance or progress payments on account of any grant contracted to be made pursuant to this title, notwithstanding the provisions of section 3648 of the Revised Statutes, as amended, or any other provisions of this title.

3

(d) 3

4

(e) Not more than 1212 per centum of the grant funds provided for in this title shall be expended in any one State: Provided, That the Secretary, without regard to such limitation, may enter into contracts for grants aggregating not to exceed $100,000,000 (subject to the total authorization provided in section 103(b) of this title) with local public agencies in States where more than two-thirds of the maximum grants permitted in the respective State under this subsection has been obligated.

(f) 5

(g) No provision permitting the new construction of hotels or other housing for transient use in the redevelopment of any urban renewal area under this title shall be included in the urban renewal plan unless the community in which the project is located, under regulations prescribed by the Secretary, has caused to be made a competent independent analysis of the local supply of transient housing and as a result thereof has determined that there exists in the area a need for additional units of such housing.

1 Par. 8 added by Public Law 370, 82d Congress, approved June 3, 1952, 66 Stat. 98, pursuant to this title if the amount of such contract does not exceed $1,000.

2 Sec. 417(1), Housing Act of 1959, Public Law 86-372, approved September 23, 1959, 73 Stat. 654, 676, substituted "grant" for "capital grant".

a Immediately prior to repeal by sec. 1020(a), Demonstration Cities and Metropolitan Development Act of 1966, Public Law 89-754, approved November 3, 1966, 80 Stat. 1255, 1295, subsec. (d) read as follows: "Section 3709, as amended, of the Revised Statutes shall not apply to any contract for services or supplies on account of any property acquired.' Immediately Prior to amendment by sec. 408, Housing Act of 1959, Public Law 86-372 approved September 23, 1959, 73 Stat. 654, 673, the language preceding the proviso read as follows:

"Not more than 12% per centum of the funds provided for in this title, either in the form of loans or grants, shall be expended in any one State".

5 Authority for relocation payments originally authorized by this subsection was incorporated with additional provisions in a new sec. 114 by sec. 310(a), Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 788.

Added by sec. 410, Housing Act of 1959, Public Law 86-372, approved September 23, 1959, 73 Stat. 654. 674.

(h)1 Notwithstanding any other provision of this title, no contract shall be entered into for any loan or capital grant under this title with any local public agency unless the local public agency establishes, by evidence satisfactory to the Secretary, that any urban renewal project with respect to which such local public agency has received a foan or capital grant under this title has been, or will be, undertaken and carried out in substantial accordance with the urban renewal plan, and any amendments thereto, approved with respect to such project, and the terms of the contract for loan or capital grant covering such project. (i) Upon determination of the Secretary that the local public agency does not expect to be able in the reasonably near future, due to circumstances beyond its control, to dispose of urban renewal project land acquired in accordance with the urban renewal plan and that all other project activities are completed except local grant-in-aid activities designated in the third proviso to section 110(d) under the conditions specified therein, and that a closeout of the urban renewal project pursuant to this subsection would be in the financial interest of the Federal Government, the urban renewal project may be deemed completed, net project cost may be computed, and the capital grant paid. To facilitate these actions, the Secretary may pay to the local public agency a grant, in addition to the capital grant otherwise payable, equal to one-third (or one-fourth in the case of projects funded on the three-fourths capital grant basis) of the estimated disposition proceeds of such land as accepted by the Secretary. No local grant-inaid shall be required on account of this additional grant. The approval of the Secretary shall be obtained prior to the disposition of such land by the local public agency and net proceeds realized from the disposition of such land after project closeout shall be paid to the Secretary by the local public agency.

PROPERTY TO BE USED FOR PUBLIC HOUSING OR HOUSING FOR MODERATE INCOME FAMILIES

3

SEC. 107. (a) Upon approval of the Secretary and subject to such conditions as he may determine to be in the public interest, any real

1 Added by sec. 306, Housing and Urban Development Act of 1965, Public Law 89-117, approved August 10, 1965, 79 Stat. 451, 476.

Immediately prior to amendment by sec. 213(a), Housing and Urban Development Act of 1969, Public Law 91-609, approved December 31, 1970, 84 Stat. 1770, 1779, section 106 (1) read as follows:

(1) 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 of or retain such lard 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 paidTM Immediately prior to amendment by sec. 306(a) (1), Housing Act of 1961, Public Law 87-70, approved June 30, 1961, 75 Stat. 149, 168, the title of sec. 107 read: “PAYMENT FOR LAND USED FOR LOW-RENT PUBLIC HOUSING".

Sec. 306. Housing Act of 1964, Public Law 88-560, approved September 2, 1964, 78 Stat. 769, 786, amended secs. 107 (a) and (b) to permit the sale of real property in an urban renewal area at a special reduced price to purchasers for the purpose of providing for low- or moderate-income individuals. Prior to this amendment the sale of such property at a special reduced price was limited to low- or moderate-income families.

Sec. 306 of the Housing Act of 1964 further amended sec. 107(b) to permit the dis position of real property in an urban renewal area for housing for low-income families at the same reduced price as for housing for moderate income families.

Sec. 505. Housing and Urban Development Act of 1968, Public Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 522, amended sec. 107(a) to permit land to be disposed of for both low- and moderate-income housing, and by lease as well as sale at a price consistent with its use for such purposes. Disposition was also permitted to mortgagors under the new interest rate subsidy programs for lower income families, or to approved purchasers or lessees other than those specified as well as mortgagors under the sec. 221(h) (1) program.