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15

16

porated areas in one or more States, unless each municipality, political subdivision, or unincorporated area to be

served by the specific public work or facility for which assistance is sought under this section has a population

less than the applicable figure under clause (A) according to such census."; and

(3) inserting "(A)" after "this section" in the second sentence thereof and adding the following before the period at the end thereof: ", (B) where principal or interest on such assistance is postponed under subsec

tion (g) of this section, or (C) where such assistance is extended to finance the construction of public works or facilities in connection with the establishment of a new

community under title X of the National Housing Act".

ADVANCE ACQUISITION OF LAND

SEC. 602. (a) Section 202 of the Housing Amend17 ments of 1955 is further amended by inserting after subsec18 tion (a) the following new subsection (b) and redesignat19 ing the remaining subsections accordingly:

20

"(b) In order to encourage and assist in the timely 21 acquisition of open or predominantly undeveloped land 22 planned to be utilized in connection with the future construc23 tion of public works and facilities, the Housing and Home 24 Finance Administrator is authorized to purchase the secu25 rities and obligations of, or make loans to, municipalities and

60

1 other political subdivisions and instrumentalities of one or 2 more States (including public agencies and instrumentalities 3 of one or more municipalities or other political subdivisions 4 of one or more States), and Indian tribes to finance the

5

acquisition of a fee simple estate or other interest in such 6 land. A loan under this subsection may be in an amount 7 which shall not exceed the total cost, as approved by the 8 Administrator, of acquiring such interest; shall be reasonably 9 secured; shall be repaid in such manner and within such period, not exceeding fifteen years, as may be determined

10

11

by the Administrator; and shall bear interest at the rate 12 prescribed for financial assistance extended under subsection

13

(a) of this section. The Administrator in his discretion may 14 provide for the postponement of the payment of principal 15 and interest on any financial assistance extended under this 16 subsection: Provided, That any interest payment so deferred 17 shall accrue and be compounded semiannually. The Admin18 istrator shall not extend any financial assistance under this 19 subsection for the acquisition of land unless he finds that the 20 public work or facility for which such land is to be utilized 21 is planned to be constructed or initiated within a reasonable 22 period of time and that construction of such public work or 23 facility will contribute to economy, efficiency, and the com24 prehensively planned development of the area. The Admin

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1

istrator may set such further terms and conditions for 2 assistance under this subsection as he deems to be desirable." 3 (b) Section 202 (e) of the Housing Amendments of 4 1955 (redesignated as section 202 (f) thereof by subsection 5 (a) of this section) is amended by striking out therein the 6 words "subsections (b) and (c)" and inserting in lieu 7 thereof "subsections (c) and (d)".

8

(c) Section 203 (a) of the Housing Amendments of 9 1955 is amended by striking "section 202 (a)" and inserting 10 in lieu thereof "section 202 (a) and pursuant to section 11 202 (b)".

12

23

13

GROWTH CAPACITY LOANS

SEC. 603. (a) Section 202 of the Housing Amend

14 ments of 1955 is further amended by adding at the end there

15 of a new subsection as follows:

16

"(g) Notwithstanding any other provision of this title, 17 the Administrator in his discretion may provide for the post18 ponement of the payment of principal and interest on finan19 cial assistance extended under clause (1) of subsection (a) of this section whenever he determines that the specific 21 public work or facility for which such assistance is 22 sought will serve a municipality, political subdivision, or 23 other area which will experience substantial population 24 growth and that the public work or facility to be constructed

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1 with financial assistance for which the repayment of prin2 cipal and interest is postponed pursuant to this section will be 3 needed as the result of such growth and will contribute to 4 economy, efficiency, and the comprehensively planned de5 velopment of the area: Provided, That such postponement of 6 the time of payment of principal and interest shall be for not 7 more than ten years after the year during which the finan8 cial assistance is extended and any interest payment so de9 ferred shall accrue and be compounded semiannually: 10 Provided further, That the financial assistance extended shall 11 be repaid, together with the interest thereon, not later than 12 fifty years after the year during which it is extended. 13 Where the Administrator finds such action necessary or de14 sirable to encourage financial participation by private lenders and investors in connection with a public work or facility 16 for which principal or interest on the financial assistance 17 extended is postponed pursuant to this subsection, the se18 curity for such financial assistance may be made subordinate 19 and inferior to the lien or liens securing other loans made 20 in connection with such public work or facility.

15

21

(b) Paragraph (2) of section 202 (b) of the Housing

22 Amendments of 1955 (redesignated as section 202 (c) there

22

23

of by section 602 (a) of this Act) is amended by striking

24 out the second sentence thereof.

1

2

63

ADVANCES FOR PUBLIC WORKS PLANNING

SEC. 604. (a) Section 702 (e) of the Housing Act of

3 1954 is amended to read as follows:

4

"(e) In order to provide moneys for advances in accord5 ance with this section, the Administrator is hereby authorized 6 to establish a revolving fund which shall comprise all moneys 7 heretofore or hereafter appropriated pursuant to this section, 8 together with all repayments and other receipts heretofore or 9 hereafter received in connection with advances made under 10 this section and all repayments and other receipts hereafter 11 received in connection with advances made pursuant to title 12 V of the War Mobilization and Reconversion Act of 1944 13 (58 Stat. 791) and the Act of October 13, 1949 (63 Stat. 14 841-2). There are hereby authorized to be appropriated 15 to such revolving fund such sums as may be necessary to 16 carry out the provisions of this section."

17

19

(b) Section 702 of the Housing Act of 1954 is amended 18 by adding at the end thereof the following new subsection: “(h) (1) Notwithstanding any other provision of law, 20 if a public agency undertakes to construct only a portion of 21 a public work planned with an advance under this section, 22 title V of the War Mobilization and Reconversion Act of 23 1944 (58 Stat. 791), or the Act of October 13, 1949 (63 24 Stat. 841-2), it shall repay such proportionate amount of