might, in some degree, assist the Commonwealth in alleviating the acute need for homes. Actually there is no veterans' housing construction, as such, underway in the State today. "This commission is not as concerned with the needs of the individual who can purchase a home at a cost of $10,000 or more as with the veteran whose income is too low to make such purchases. It must be borne in mind that the majority of veterans are young men, endeavoring to earn a living and establish a home for their families during a period of rising prices. Their task is no easy one. "The Commonwealth of Massachusetts has a positive obligation to such veterans. Any government in time of war which was able to erect thousands of units to house war workers should be equally ready to take care of the veteran who responded to the call of his government, and is now entitled to every possible assistance within the command of the State to provide. This is no time for short memories." The report of the commission carried recommendations as to legislation. The significant section provided for public housing similar in method to that proposed in title VI of S. 866. It differs in that occupancy is exclusively for veterans and that rentals, while low, will be above those anticipated under the Federal legislation. The act requires conformance to "the existing published requirements of the Federal Government for low-rent housing projects." In conclusion, the commission stated, "War veterans of Massachusetts in need of housing are expecting, and rightfully so, the same type of leadership from their elected representatives in solving this problem which was manifest by the enactment of many veterans' benefit laws by the general court. Valuable time already has been wasted in providing low-cost rental dwelling units for veterans. The housing program, as recommended in this report, should be the answer and the fulfillment of their expectations. It is, in the opinion of this commission, if adopted in its entirety, a definite solution. There is no painless method of constructing houses." Prompt and vigorous executive and legislative action followed close on the heels of the lead set by the recess commission. Governor Bradford strongly endorsed its passage in his annual message to the legislature. Senate President Harris S. Richardson and House Speaker Frederick B. Willis, together with other legislative leaders, took the unusual step of forming one joint committee. Three would ordinarly have been required. As you may know, the Massachusetts Legislature holds public hearings and must take action during the session on every bill filed. The forming of the joint committee avoided three separate public hearings before each committee and saved considerable time. At the single public hearing exactly 100 persons and/or organizations appeared in favor of the bill. They included every significant veteran, labor, civic, woman's, religious, and social organization in the Commonwealth as well as the Massachusetts Federation of Taxpayers Association. Mayors, selectmen, municipal and State officials also appeared as vigorous proponents of the measure. Eleven persons and/or organizations appeared in opposition. The joint committee reported the bill out with some technical amendments. The report was unanimous and favorable. During its consideration the House of Representatives sent the bill to the Massachusetts Supreme Judicial Court for its opinion as to constitutionality. In upholding the constitutionality of the act, the justices referred to the purpose of the legislation as being to "maintain the strength of the State for the benefit of all its people by rendering military service honorable, avoiding the disgraceful spectacle of veterans, possibly because of their very absence in military service, unable to obtain suitable living accommodations in the community they have aided to defend * During the debate in the House and the Senate the only objection was that the bill did not go far enough. The House passed the bill unanimously: 219 voting "aye"; none voting "nay." The Senate, the next day, also voted unanimously: 36 voting "aye"; none voting "nay." Rules were suspended and 3 months after the opening of the legislature, Governor Bradford signed the act and made it the law of the Commonwealth. The Massachusetts veterans' housing program is immense in terms of size. range, responsibility, and emphasis on speed. The State plans to guarantee the bonds of local housing authorities to the amount of $200,000,000 and contribute $5,000,000 each year over the next 25 years. The program envisages 20,000 new dwelling units. The Commonwealth's financial stake, outside of administrative expenses, is formidable. It amounts to $325,000,000. It amounts to one-twentieth of the entire assessed valuation of the Commonwealth. The $5,000,000 annual contribution represents more than $1 per capita per year. The demand for housing under our new Massachusetts legislation has been overwhelming. The supply will fall far short of the demand. Less than 48 hours after enactment, one-third of the total had already been subscribed. Massachusetts felt that this tremendous investment was necessary. But the Commonwealth planned and hopes that we will not be required to carry this burden single-handed. The act requires that the chairman of the State housing board guarantee the bonds of only those projects which conform with Federal requirements. The act further requires that the local agencies which build and manage this veterans' public housing must immediately convert, in whole or in part, to a Federal status when, as, and if the United States Congress acts. Our Massachusetts Senators (Senators Saltonstall and Lodge) have already acted. Section 607, an amendment to S. 866 specifically designed to provide for conversion of the Massachusetts projects to a .title VI status was, at the request of Governor Bradford, proposed by our Senators and adopted by the United States Senate as part of the bill now before your committee. Massachusetts, more than 30 years ago, was the first governmental agency ever to enter into public housing. She has again shown leadership. Obviously, the State legislators have carried out the will of the people. Without Federal help we must carry the great burden alone. It has been estimated, however, that Massachusetts contributes $5 to the Federal Government for each one it gets in return. Written into our housing legislation is the hope that the Eightieth Congress will provide us with a more favorable balance, as far as housing is concerned. The Governor, the legislature, and the people of Massachusetts are not, therefore, just interested in any housing bill before the Congress. They are specifically interested in S. 866, the bill now before your committee. And they are specifically interested in the passage of title VI-public housing. By their amendment and by their votes Senator Saltonstall and Senator Lodge have done much to serve and protect the veterans and the citizens of Massachusetts. The action of your committee, of the Massachusetts Representatives, and the Members of the United States House of Representatives is therefore a matter of constant interest and particular importance to the people of the Commonwealth of Massachusetts. CHAPTER 200, THE COMMONWEALTH OF MASSACHUSETTS IN THE YEAR ONE THOUSAND NINE HUNDRED AND FORTY-EIGHT, AN ACT TO PROVIDE FINANCIAL ASSISTANCE BY THE COMMONWEALTH TO HOUSING AUTHORITIES IN ORDER TO ALLEVIATE THE HOUSING SHORTAGE FOR VETERANS Whereas an acute shortage of housing exists in many of the cities and towns of the Commonwealth, and on account of such shortage many veterans are unable to obtain shelter for themselves and their families, and this shortage is likely to continue for a substantial period of time; and inability to obtain adequate shelter will cause suffering and disease among such veterans unless such shortage is relieved, and this condition has created a public exigency making the provision, as provided by this act, of financial assistance by the Commonwealth to housing authorities, in order to alleviate such shortage an immediate public necessity therefore this act is declared to be an emergency law, necessary for the immediate preservation of the public health and convenience. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: SECTION 1. Section 26 I of chapter 121 of the General Laws, inserted by section 1 of chapter 574 of the acts of 1946, is hereby amended by striking out, in line 2, the word "thirty-one" and inserting in place thereof the word "thirty-four," so as to read as follows: "Section 26 I. Designation as Housing Authority Law.— This section and the thirty-four following sections shall be known and may be cited as the Housing Authority Law." SECTION 2. Section 26 J of said chapter 121, as so inserted, is hereby amended by striking out the paragraph defining "Veterans" and inserting in place thereof the following paragraph: "Veterans," a man or woman who served for at least 90 consecutive days during time of war or insurrection in the armed forces of the United States of America and has been, separated therefrom under conditions other than dishonorable. The term shall also include the widow, mother or other dependent of a person who so served and who died while in such service and the wife, mother or other dependent of a person who is so serving. SECTION 3. Said chapter 121 is hereby further amended by striking out section 26NN, and its caption "PART V. EFFECT OF PARTIAL INVALIDITY", as so inserted, and inserting in place thereof the following four sections under the caption "PART V. STATE-AIDED PROJECTS.": Section 26NN. Contracts for State Financial Assistance.-The commonwealth, acting by and through the board, may enter into a contract or contracts with a housing authority for state financial assistance in the form of a guarantee by the commonwealth of notes and/or bonds of the housing authority issued to finance the cost of a housing project or projects, and annual contributions by the commonwealth. Each such contract shall contain such limitations as to the development cost of the project and administrative and maintenance costs, and such other provisions as the board may require. Each project shall be based upon a separate application made to the board and shall be planned to conform, as nearly as possible, to the existing published requirements of the federal government for low-rent or other housing projects, except such requirements as are based upon the cost limitations set forth in federal legislation. A project so planned shall be deemed to provide adequate performance as set forth in section three J of chapter one hundred and forty-three. A housing authority may, with the approval of the board, acquire under the provisions of section twenty-six P for the purposes of a project under this section or section twenty-six OO, any land acquired by a city or town under the provisions of chapter three hundred and seventy-two of the acts of nineteen hundred and forty-six, as amended; provided, that such city or town has not completed construction of a housing project on such land. Each project developed under this section and section twenty-six OO shall be administered for occupancy in accordance with section twenty-six FF, except clause (c), and except that each such project shall be occupied exclusively by veterans and their families and priority shall be given first to veterans of World War II of low income, then to veterans of low income, such low income to be determined from time to time by the board. If federal assistance for low-rent housing becomes available in any form not applicable to projects under this chapter, the board shall immediately report the circumstances to the general court together with such recommendations for legislation as may be necessary to enable such projects to qualify for such assistance. Upon the availability of federal financial assistance for low-rent housing projects under this section, each housing authority having a contract for state financial assistance shall, upon receipt of written notice from the board, immediately enter into negotiations with the federal government to arrange for federal financial assistance with respect to any project developed hereunder and for the termination, in whole or in part, of state financial assistance. For any such project the board may order any housing authority (1) to apply for federal financial assistance, and (2) upon obtaining the approval of the federal government, to enter into a contract or contracts for federal financial assistance, and to make such arrangements as are possible to terminate, reduce, or subordinate the obligation of the commonwealth to render financial assistance in such amount as is provided by federal financial assistance. No order of the board shall in any way affect any outstanding obligations of a housing authority or the rights of any holders of notes or bonds. The amount of federal payments shall be used to the fullest allowable extent to meet the payment of principal and interest on all notes or bonds guaranteed by the commonwealth. After March thirtyfirst, nineteen hundred and fifty-three, or such later date as the board shall determine that an acute shortage of housing for veterans constituting a public exigency, emergency, or distress no longer exists, any project constructed under this section and receiving state financial assistance may, with the approval of the board, be sold for the amount of the fair market value thereof as determined .by the board, but not less than the total of the outstanding obligations of the housing authority with respect to such project. Upon the expiration of the period for which the commonwealth is obligated to furnish state financial assistance. and provided the federal government has not become obligated to furnish federal financial assistance, any such prorject shall be offered for sale nad disposed of as soon as is consistent with sound business judgment; provided, that any such sale shall be approved by the board. The Housing Authority Bonds Sinking Fund is hereby established and the state treasurer is hereby designated custodian thereof and he shall administer such fund in accordance with the provisions of chapter twenty-nine. So long as any notes and/or bonds issued by a housing authority to finance the cost of a project under this section or section 26 00 and guaranteed by the commonwealth are outstanding, the proceeds of any sale of such project shall be paid by the housing authority into such fund and shall be expended from time to time by the state treasurer to pay interest and principal of any notes and/or bonds issued by such housing authority to finance such project. The proceeds of any sale of such project in excess of the total of all obligations of the housing authority with respect to such project shall, after the payment of all notes and/or bonds issued by the housing authority to finance the cost of such projects, be paid to the city or town in which such project is located and to the commonwealth. The respective payments to such city or town and the commonwealth shall be proportional to the contributions theretofore made by such city or town and the commonwealth toward the development and maintenance of such project, as determined by the board. In determining the contributions of a city or town, the board shall include the amounts which the city or town would have received if such project had not been exempt from taxes, betterments, and special assessments, less any amounts paid by the housing authority to the city or town in lieu of such taxes, betterments, and special assessments. Payment to the commonwealth hereunder shall be added to the Veterans' Services Fund, established by chapter six hundred and eight of the acts of nineteen hundred and forty-six. The provisions of sections twentysix I to twenty-six II, except section twenty-six GG, shall, as far as apt, be applicable to projects developed under this section and under section twentysix OO and to housing authorities while engaged in developing and administering such projects; provided, that whenever the phrases "federal government" or "federal legislation" are used in said sections twenty-six I to twenty-six II, they shall also mean the commonwealth or the laws of the commonwealth, as the case may be; and that whenever the words “low-rent housing project" or "project" are used in said sections twenty-six I to twenty-six II, they shall also mean a state-aided project under this section and section twenty-six 00. Within the period of ninety days from the effective date of this section, no housing authority of a city or town shall be entitled to financial assistance in an amount which is greater than an amount which bears the same ratio to the total state financial assistance hereby authorized as the total assessed valuation of such city or town bears to the total assessed valuation of all the cities and towns of the commonwealth. The board shall accept no application for state financial assistance under this section or section twenty-six 00 after two years following the effective date of this section. The following provisions shall be applicable to each contract for state financial assistance under this section and section twenty-six 00: (a) A housing authority may sell temporary notes and/or bonds to finance a project; provided, that the total amount outstanding at any one time shall not be in excess of the cost of the project as approved by the board. Any such notes or bonds may be refunded through the sale of similar notes or bonds, but in no event for a term more than twenty-five years after completion of the project, as determined by the board. Notwithstanding the provisions of section twentysix W, the payment of the principal of, and interest on, all such notes and/or bonds shall be guaranteed by the commonwealth, and the full faith and credit of the commonwealth is hereby pledged for any such guarantee; provided, that the total amount of notes and/or bonds so guaranteed shall not exceed two hundred million dollars in the aggregate for all projects constructed under this section and section twenty-six OO, exclusive of any such notes and/or bonds which may be issued for refunding purposes. No housing authority shall sell or offer for sale any such notes or bonds without receiving from the board approval of the amount, the term, the time of sale, the amortization schedule, and any other conditions of sale which the board may deem relevant in connection with the sale of such notes or bonds. The average annual rate of the amortization of bonds issued to finance a project shall be not less than three percent of the principal amount of such bonds. (b) Each contract for state financial assistance or supplementary state financial assistance shall provide that the commonwealth will pay to the housing authority annual contributions; provided, however, that the total amount of annual contributions contracted for by the commonwealth for any one year shall not exceed five million dollars. Each such contract shall contain a provision that the annual contributions shall be used for the payment of interest on, and principal of, notes and/or bonds of the housing authority. The annual contributions for any one project shall be payable in an amount not exceeding two and one-half percent of the cost of the project, as determined by the board, and for the fixed period during which the bonds issued to finance the cost of the project or any refunding bonds remain outstanding, but in no event for more than twenty-five years after the completion of the project, as determined by the board. Each such contract shall provide that whenever in any year the receipts of a housing authority in connection with a project exceed its expenditures for that project, including debt service, payments in lieu of taxes, administration, establishment of reserves, and other costs, as determined by the board, an amount equal to such excess, or, in the case of projects under section twentysix 00, an amount equal to such portion of the excess as the board shall prescribe, shall be applied, or set aside for application, to purposes which shall effect a reduction in the amount of subsequent annual contributions. The full faith and credit of the commonwealth is hereby pledged to the payment of all annual contributions contracted for by the commonwealth. The Veterans' Services Fund, established by chapter six hundred and eight of the acts of nineteen hundred and forty-six, shall be used in the first instance, subject to appropriation, to meet the payments of the annual contributions by the commonwealth to housing authorities pursuant to contracts for state financial assistance under this section and section twenty-six 00 for such period or periods. (c) The board may enforce any of its orders, rules or regulations or the provisions of any contract between the commonwealth and a housing authority by a bill in equity filed in the superior court or by a petition for a writ of mandamus filed under the provisions of section five of chapter two hundred and forty-nine. In the event of a breach by a housing authority of any provisions of a contract between it and the commonwealth relating to a project, the commonwealth, acting by the board, may take immediate possession of the project, and retain possession and operate the project in the place and stead of the housing authority, with all the rights and powers of the housing authority, and subject to all of its obligations respecting the possession and operation of the project and the revenues therefrom, until such time as such breach shall have been corrected to the satisfaction of the board. Section 2600. Contracts for Supplementary State Financial Assistance: The commonwealth, acting by and through the board, may enter into a contract or contracts with a housing authority for supplementary state financial assistance in the form of a guarantee by the commonwealth of any loan made by the housing authority to finance that portion of the cost of a housing project or projects not financed with federal assistance, and annual contributions by the commonwealth on that portion of the cost of such project or projects for which no federal contributions are available. Section 26PP. Relationship with Federal Government and Others: The commonwealth shall have power to receive loans and grants from the federal government or any agency or instrumentality thereof, or from any other source, public or private, and to use any such loan or grant or part thereof for any purpose of sections 261 to 26QQ, or to act as agent of, or to cooperate in any way with, the Federal Government or any agency or instrumentality thereof on any project authorized by said sections. Part VI. Effect of partial invalidity. Section 26QQ. Separability of provisions: The provisions of sections 261 to 26PP, inclusive, are hereby declared to be severable and if any such provision, or the application of such provision to any person or circumstances, shall be held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not be construed to affect the validity or constitutionality of any of the remaining provisions of said sections or the application of such provisions to persons or circumstances other than those as to which it is held invalid. It is hereby declared to be the legislative intent that said sections would have been adopted had such invalid or unconstitutional provision not been included therein. House of Representatives, April 5, 1948. President. April 6, 1948. Approved, at 4 o'clock and 40 minutes p. m. ROBERT F. BRADFORD, Governor. |