sist the Secretary in carrying out his responsibilities to the President with respect to achieving maximum coordination of the programs of the various departments and agencies of the Government which have a major impact on community development. In providing such assistance, the Director shall make such studies of urban and community problems as the Secretary shall request, and shall develop recommendations relating to the administration of Federal programs affecting such problems, particularly with respect to achieving effective cooperation among the Federal, State, and local agencies concerned. Subject to the direction of the Secretary, the Director shall, in carrying out his responsibilities, (1) establish and maintain close liaison with the Federal departments and agencies concerned, and (2) consult with State, local, and regional officials, and consider their recommendations with respect to such programs.

(c)1 There shall be in the Department an Assistant to the Secretary, designated by the Secretary, who shall be responsible for providing information and advice to nonprofit organizations desiring to sponsor housing projects assisted under programs administered by the Depart

ment.

(d) (1) There shall be in the Department a Special Assistant for Indian and Alaska Native Programs, who shall be responsible for Coordinating all programs of the Department relating to Indian and Alaska Native housing and community development. The Special Assistant for Indian and Alaska Native Programs shall be designated by the Secretary not later than 60 days after the date of enactment. of this subsection.

(2) The Secretary shall, not later than December 1 of each year, Submit to Congress an annual report which shall include

(A) a description of his actions during the current year and a projection of his activities during the succeeding years;

(B) estimates of the cost of the projected activities for succeeding fiscal years;

(C) a statistical report on the conditions of Indian and Alaska Native housing and

(D) recommendations for such legislative, administrative, and other actions, as he deems appropriate.2

TRANSFERS TO DEPARTMENT

SEC. 5. (a) Except as otherwise provided in subsection (b) of this section, there are hereby transferred to and vested in the Secretary all of the functions, powers, and duties of the Housing and Home Finance Agency, of the Federal Housing Administration and the Public Housing Administration in that Agency, and of the heads, and other officers and offices of said agencies.

(b) The Government National Mortgage Association, together with its functions, powers, and duties, is hereby transferred to the Department. The next to the last sentence of section 308 of the Federal National Mortgage Association Charter Act is hereby repealed.

(c) The President shall undertake studies of the organization of housing and urban development functions and programs within the

Added by Sec. 917, Housing and Urban Development Act of 1970, Public Law 91-609, pproved December 31, 1970.

Housing and Community Development Act of 1977, Public Law 95-128, approved Oct 12, 1977, amended section 4 by adding at the end thereof a new subsection (d). Sec. 807 (e), Housing and Urban Development Act of 1968. Public Law 90-448, approved Aug 1, 1968, 82 Stat. 476, 544, substituted "Government" for "Federal".

Federal Government, and he shall provide the Congress with the find ings and conclusions of such studies, together with his recommenda tions regarding the transfer of such functions and programs to or from the Department. Notwithstanding any other provision of this Act none of the functions of the Secretary of the Interior authorized unde the Land and Water Conservation Fund Act of 1965 (78 Stat. 897 or other functions carried out by the Bureau of Outdoor Recreation shall be transferred from the Department of the Interior or in an way be limited geographically unless specifically provided for by re organization plan pursuant to provisions of the Reorganization Ac of 1949 (63 Stat. 203), as amended, or by statute.

CONFORMING AMENDMENTS

SEC. 6. (a) Section 19 (d) (1) of title 3 of the United States Cod is hereby amended by striking out the period at the end thereof an inserting a comma and the following: "Secretary of Health, Educa tion, and Welfare, Secretary of Housing and Urban Development. (b) Section 158 of the Revised Statutes (5 U.S.C. 1) is amende by adding at the end thereof:

"Eleventh. The Department of Housing and Urban Development. Repealed.1

(c) The amendment made by subsection (b) of this section shall no be construed to make applicable to the Department any provision law inconsistent with this Act.

ADMINISTRATIVE PROVISIONS

SEC. 7. (a) The personnel employed in connection with, and th assets, liabilities, contracts, property, records, and unexpended ba ances of appropriations authorizations, allocations, or other fund held, used, arising from, or available or to be made available in co nection with, the functions, powers, and duties transferred by sectio 5 of this Act are hereby transferred with such functions, powers, an duties, respectively.

(b) No transfer of functions, powers, and duties shall at any tim be made within the Department in connection with the secondar market operations of the Federal National Mortgage Association un less the Secretary finds that the rights and interests of owners outstanding common stock issued under the Federal National Mor gage Association Charter Act will not be adversely affected thereb Repealed.2

(c) The Secretary is authorized, subject to the civil service an classification laws, to select, appoint, employ, and fix the compensatio of such officers and employees, including attorneys as shall be nece sary to carry out the provisions of this Act and to prescribe the authority and duties: Provided, That any other provision of law the contrary notwithstanding, the Secretary may fix the compens

1 Sec. 10(b), Public Law 90-83, approved Sept. 11. 1967. Stat. 195. 233. repeal sec. 6(b). However, in sec. 10(b) of the Department of Transportation Act. Public La 89-670, approved October 15, 1966, 80 Stat. 931. 948. the Department of Housing a Urban Development was included in the recodified section 101 of title 5, United Stat Code.

2 Sec. 807 (d), Housing and Urban Development Act of 1968, Public Law 90-448, a proved Aug. 1, 1968, 82 Stat. 476, 544, repealed section 7(b).

tion for not more than six positions in the Department at the annual rate applicable to positions in level V of the Federal Executive Salary Schedule provided by the Federal Executive Salary Act of

1964.

(d) The Secretary may delegate any of his functions, powers, and duties to such officers and employees of the Department as he may designate, may authorize such successive redelegations of such functions, powers, and duties as he may deem desirable, and may make such rules and regulations as may be necessary to carry out his functions, powers, and duties. The second proviso of section 101(c) of the Housing Act of 1949 is hereby repealed.

(e) The Secretary may obtain services as authorized by section 15 of the Act of August 2, 1946, at rates for 2 individuals not to exceed the per diem equivalent to the highest rate for grade GS-18 of the General Schedule under section 5332 of title 5, United States Code.

(f) The Secretary is authorized to establish a working capital fund, to be available without fiscal year limitation, for expenses necessary for the maintenance and operation of such common administrative services as he shall find to be desirable in the interest of economy and efficiency in the Department, including such services as a central supply service for stationery and other supplies and equipment for which adequate stocks may be maintained to meet in whole or in part the requirements of the Department and its agencies; central messenger, mail, telephone, and other communications services; office space; central services for document reproduction and for graphics and visual aids; and a central library service. In addition to amounts appropriated to provide capital for said fund, which appropriations are hereby authorized, the fund shall be capitalized by transfer to it of such stocks of supplies and equipment on hand or on order as the Secretary shall direct. Such funds shall be reimbursed from available. funds of agencies and offices in the Department for which services are performed at rates which will return in full all expenses of operation, including reserves for accrued annual leave and for depreciation of equipment.

(g) The Secretary shall cause a seal of office to be made for the Department of such device as he shall approve, and judicial notice shall be taken of such seal.

(h) Except as such authority is otherwise expressly provided in any other Act administered by the Secretary, such financial transactions of the Secretary as the making of 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. Funds made available to the Secretary pursuant to any provision of haw for such financial transactions shall be deposited in a checking account or accounts with the Treasurer of the United States. Such funds and any receipts and assets obtained or held by the Secretary

Ser. 808(b), 1968 Civil Rights Act. Public Law 90-284, approved Apr. 11, 1968. 82 Stat. 73 84 substituted "seven" for "six". Sec. 17 (d) of the Housing Authorization Act of 116 Public Law 94-375. approved August 3. 1976. 90 Stat. 1067, amended section 7 (c) of the Department of Housing and Urban Development Act by striking "seven" and inwrding in lieu thereof "six".

Ser. 906. Housing and Urban Development Act of 1970, Public Law 91-609. approved December 31, 1970, 84 Stat. 1770, 1811, amended the remainder of this sentence to increase the maximum amount payable to consultants from $100 per diem to the daily equivalent to the highest rate for GS-18.

18905. Housing and Urban Development Act of 1970. Public Law 91-609, approved December 31, 1970, 84 Stat. 1770, 1809, 1810, added subsections (h) to (1) inclusive.

in connection with such financial transactions shall be available, i such amounts as may from year to year be authorized by the Congress for the administrative expenses of the Secretary in connection wit such financial transactions. Notwithstanding the provisions of an other law, the Secretary may, with the approval of the Comptrolle General, consolidate into one or more accounts for banking and check ing purposes all cash obtained or held in connection with such financia transactions, including amounts appropriated, from whatever sour derived.

(i) Except as such authority is otherwise expressly provided in an other Act administered by the Secretary, the Secretary is authorize

to

(1) foreclose on any property or commence any action t protect or enforce any right conferred upon him by any law, con tract, or other agreement, and bid for and purchase at an foreclosure or any other sale any property in connection wit which he has made a loan or grant. In the event of any suc acquisition, the Secretary may, notwithstanding any other prov sion of law relating to the acquisition, handling, or disposal o real property by the United States, complete, administer, remode and convert, dispose of, lease, and otherwise deal with, such prop erty: Provided, That any such acquisition of real property sha not deprive any State or political subdivision thereof of its civ or criminal jurisdiction in and over such property or impair th civil rights under the State or local laws of the inhabitants o such property: Provided further, That section 3709 of th Revised Statutes shall not apply to any contract for services o supplies on account of any property so acquired or owned if th amount of such contract does not exceed $2,500;

(2) enter into agreements to pay annual sums in lieu of taxe to any State or local taxing authority with respect to any rea property so acquired or owned;

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

(4) obtain insurance against loss in connection with propert and other assets held;

(5) consent to the modification, with respect to the rate o interest, time of payment of any installment of principal or inter est, security, or any other term of any contract or agreement t which he is a party or which has been transferred to him; and

(6) include in any contract or instrument such other covenants conditions, or provisions as he may deem necessary.

(j) Notwithstanding any other provision of law the Secretary authorized to establish fees and charges, chargeable against prograr beneficiaries and project participants, which shall be adequate to cove over the long run, costs of inspection, project review and financin service, audit by Federal or federally authorized auditors, and othe beneficial rights, privileges, licenses, and services. Such fees an charges heretofore or hereafter collected shall be considered non administrative and shall remain available for operating expenses o the Department in providing similar services on a consolidated basi

(k) (1) The Secretary is authorized to accept and utilize voluntar and uncompensated services and accept, hold, administer, and utiliz

gifts and bequests of property, both real and personal, for the purpose of aiding or facilitating the work of the Department. Gifts and bequests of money and the proceeds from sales of other property received as gifts or bequests shall be deposited in the Treasury in a separate fund and shall be disbursed upon order of the Secretary. Property accepted pursuant to this paragraph, and the proceeds thereof, shall be used as nearly as possible in accordance with the terms of the gift or bequest.

(2) For the purpose of Federal income, estate, and gift taxes, property accepted under paragraph (1) shall be considered as a gift or bequest to or for use of the United States.

(3) Upon the request of the Secretary, the Secretary of the Treasury may invest and reinvest in securities of the United States or in securities guaranteed as to principal and interest by the United States. any moneys contained in the fund provided for in paragraph (1). Income accruing from such securities and from any other property held by the Secretary pursuant to paragraph (1) shall be deposited to the credit of the fund and shall be disbursed upon order of the Secretary.

(1) The Secretary is authorized to appoint, without regard to the civil service laws, such advisory committees as shall be appropriate for the purpose of consultation with and advice to the Department in performance of its functions. Members of such committees, other than those regularly employed by the Federal Government, while attending meetings of such committees or otherwise serving at the request of the Secretary, may be paid compensation at rates not exceeding those authorized for individuals under subsection (e) of this section, and while so serving away from their homes or regular places of business, may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code, for persons in the Government service employed intermittently. (m) Whenever he shall determine that, because of location, or other considerations, any rental housing project assisted under title II of the National Housing Act or title I of the Housing and Urban Development Act of 1965 could ordinarily be expected substantially to serve the family housing needs of lower income military personnel serving on active duty, the Secretary is authorized to provide for or approve such preference or priority of occupancy of such project by sch military personnel as he shall determine is appropriate to assure that the project will serve their needs on a continuing basis notwithstanding the frequency with which individual members of such personnel may be transferred or reassigned to new duty stations.

(n) Notwithstanding any other provision of law, the Secretary is authorized by contract or otherwise to establish, equip, and operate a day care center facility or facilities, or to assist in establishing,

Ser 120(c). Housing and Urban Development Act of 1970, Public Law 91-609, approved December 31, 1970, S4 Stat. 1770, 1775, 1776, added subsection (m). Se 21 of the Housing Authorization Act of 1976. Public Law 94-375, approved 13. 1976, 90 Stat. 1067. amended section 7 of the Department of Housing and Erban Development Act by inserting a new subsection (n). This was further amended by 316. Housing and Community Development Amendments of 1978, P.L. 95-557, Stat. 2080. approved October 31, 1978. The previous subsection read as follows: Notwithstanding any other provision of law, the Secretary is authorized by contract otherwise to establish, equip and operate a day care center facility for the purpose of serving children who are members of households of employees of the Department. The Secretary is authorized to establish or provide for the establishment of approprifees and charges to be chargeable against the Department of Housing and Urban Ielopment employees or others who are beneficiaries of services provided by such a day

care center.