instruments issued under a trust mortgage or deed of trust pursuant to which such holders act by and through a trustee named therein.

"(9) (8) The term 'mortgagor' ineludes means the original borrower under a mortgage and his or its successors and assigns."

TITLE II-LOAN PROGRAM

LOANS

SEC. 201. (a) The Housing and Home Finance Administrator Secretary of Housing and Urban Development (in this title (hereinafter referred to as the "Administrator Secretary') is authorized to make loans to any group practice units or organizations to assist in financing the construction cost of group practice facilities. No such loan shall be made unless the Administrator Secretary finds (1) that the applicant is responsible and able to repay the loan but is unable to secure the funds from other sources (with or without mortgage insurance under title of the National Housing Act) upon terms and conditions equally as favorable as the terms and conditions applicable to loans under this title, and (2) that the construction or rehabilitation will be undertaken in an economical manner, will not be of elaborate or extravagant design or materials, and will be adequate and suitable for carrying out the purposes of this title. The amount and maturity of a loan under this title shall not exceed the limits prescribed in section 1001 1101(c) of the National Housing Act. A loan under this title shall bear interest at a rate equal to the maximum rate applicable under section 100+ 1101(c)(3) of such Act. plus The borrower shall pay such service charges as may be established from time to time by the Secretary which shall in no case be less than the premium charge applicable to mortgages insured under section 1002 1102 of such Act, and. The loan shall be secured in such manner as may be determined by the Administrator Secretary.

(b) Each contract for a loan under this title shall contain an undertaking (in accordance with regulations prescribed under this title and in force at the time the loan contract is made) to the effect that, except as authorized by the Administrator Secretary, the property will be used as a group practice facility until the loan has been paid in full or the loan contract otherwise terminated.

(c) No loan shall be made under this title unless the borrower certifies (1) that it will keep such records relating to the loan transaction and indebtedness, to the construction or rehabilitation of the facility covered by the loan, and to the use of such facility as a group practice facility as are prescribed by the Administrator Secretary at the time of such certification, (2) that it will make such reports as may from time to time be required by the Administrator Secretary pertaining to such matters, and (3) that the Administrator or any authorized officer or employee of the Housing and Home Finance Agency, or of any agency or institutionem ployed or utilized by the Administrator for that purpose, Secretary shall have access to and the right to examine and audit such records.

(d) The Administrator Secretary may sell to any person or entity approved for such purpose by him, any loan made under this title, and a mortgage securing any loan thus sold may be insured under title XXI of the National Housing Act. (e) No loan contract shall be entered into under this title after June 30, 1970 October 1, 1969, except pursuant to a commitment to lend issued before that date.

GROUP PRACTICE FACILITIES LOAN FUND

SEC. 202. (a) There is hereby created a Group Practice Facilities Loan Fund (hereafter in this section called hereinafter referred to as the "Fund") which shall be available without fiscal year limitation to the Administrator Secretary for carrying out the provisions of this title. The Administrator is hereby authorized to transfer to the Fund from time to time from the appropriations provided under the authority in section 301 and available therefor such sums as he deems necessary to provide capital for the Fund: General expenses of the Administrator in operating the program Secretary under this title may be charged to the Fund. Moneys in the Fund not needed for current operations under this title may be invested in bonds or other obligations guaranteed as to principal and interest by the United States. Any excess moneys in the Fund may be transferred to the Group Practice Facilities Insurance Fund established by section 1003 of the National Housing Aet or, if not needed for such purpose, shall be deposited in the Treasury as miscellaneous receipts. There are hereby authorized to be appropriated to the Fund such sums as may be necessary to carry out the purposes of this title, except that

such appropriations shall not exceed $10,000,000 prior to June 30, 1966, which amount shall be increased by $12,500,000 on that date, and on June 30 of each of the succeeding three years. Any sums appropriated under this subsection shall remain available until expended. Interest shall accrue to the Treasury on sums appropropriated to the Fund and not offset by deposits for the Fund into the Treasury as miscellaneous receipts as provided in subsection (a). The rate of such interest shall be determined annually in advance by the Secretary of the Treasury taking into consideration the current average yields to maturity (on the basis of daily closing market bid quotations during the month of June of the preceding fiscal year) on outstanding interest-bearing and marketable public debt obligations of the United States having maturities comparable to loans made under title II of the Act. From time to time and at least at the close of each fiscal year, the Secretary shall pay to the Treasury, as miscellaneous receipts, all accrued interest under this section.

POWERS OF ADMINISTRATOR SECRETARY

SEC. 203. In the performance of, and with respect to, the functions, powers, and duties vested in him by this title, the Administrator Secretary shall (in addition to any authority otherwise vested in him) have the functions, powers, and duties set forth in section 402 (except subsections (b) and (c)(2)) of the Housing Act of 1950.

REGULATIONS

SEC. 204. The Administrator Secretary, in prescribing regulations to carry out this title, shall consult with the Surgeon General of the Public Health Service with respect to any health or medical aspects of the program under this title which may be involved in such regulations.

DEFINITIONS

SEC. 205. For the purposes of this title, the terms "construction eest", "group practice facility", "medical or dental group", "group practice unit or organization", "nonprofit organization", and "State" shall have the meanings given them by section 1007 1105 of the National Housing Act. The term "group

practice unit or organization" shall have the same meaning as given in section 1105(3) of such Act, except that it may also include a public nonprofit agency or organization established for the purposes outlined in section 1105(3) (B) of such Act.

TITLE III-MISCELLANEOUS

APPROPRIATIONS

See: 201. (a) There are hereby authorized to be appropriated such sums as may be necessary to carry out the purposes of title X of the National Housing Aet and title H of this Act, except that (1) the aggregate sums authorized to be appropriated shall not exceed $10,000,000 until June 30, 1966, which amount shall be increased by $12,500,000 on July 1, 1966, and on July 1 of each of the succeeding three years, and (2) not less than 10 per centum of any such appropriation shall be available exclusively for transfer to the Group Practice Facilities Insurance Fund established by section 1003 of the National Housing Act. Any sums appropriated under this subsection shall remain available until expended. (b) Interest shall accrue to the Treasury on outstanding capital resulting from transfers to the Funds established under section 1003 of the National Housing Act and section 202 of this Act from appropriations under subsection (a) and shall, for each fiscal year, be determined on the basis of the average daily amount of such capital outstanding during such year. The rate of such interest shall be determined annually in advance by the Secretary of the Treasury taking into consideration the current average yields to maturity (on the basis of daily elesing market bid quotations during the month of June of the preceding fiseal year) on outstanding interest-bearing marketable publie debt obligations of the United States having maturities comparable to loans secured by mortgages insured under title X of the National Housing Act, or to loans made under title H of this Act, as the ease may be. From time to time and at least at the close of each fiscal year, the Federal Housing Commissioner and the Housing and Home Finance Administrator shall pay to the Treasury, as miscellaneous receipts, all seerued interest under the programs with which they are respectively concerned.

PRIORITIES AND ADVISORY COMMITTEES

SEC. 302 301. (a) The Federal Housing Commissioner and the Housing and Home Finance Administrator shall jointly Secretary shall, pursuant to regulations prescribed by them him for this purpose after consultation with the Surgeon General of the Public Health Service with respect to the health and medical matters involved, establish criteria and procedures for determining priorities in the insuring of mortgages under title XXI of the National Housing Act and the making of loans to eligible applicants under title II of this Act in the event that the funds available therefor are insufficient to insure or lend in full the amounts requested in applications otherwise approvable, which criteria shall give preference in the case of applications involving facilities to be located in smaller communities and in the case of applications of agencies or organizations described in subparagraph (A) or (B) of section 1007(4) 1105(3) of the National Housing Act which are public or nonprofit organizations as defined in section 1007(5) 1105(4) of such Act, and in such other cases as they he may deem appropriate and consistent with the purpose of this Act.

(b) The Commissioner and the Administrator Secretary shall appoint, without regard to the civil service laws, an advisory committee or committees consisting in whole or in part of physicians, dentists, and consumer representatives to advise and consult with them him with respect to carrying out their his functions under this Act and title XXI of the National Housing Act. Members of any such advisory committee who are not full-time employees of the United States shall, while attending meetings or conferences of such committee or otherwise engaged on business of such committee, receive compensation at a rate fixed by the Administrator Secretary, but not exceeding $100 per diem, including travel time, and while away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by law (5 U.S.C. 73b-2) for persons in the Government service employed intermittently.

ADMINISTRATION

SEC. 302 302. (a) At the request of individuals or organizations operating or contemplating the operation of group practice facilities (as defined in section 1007(2) 1105(1) of the National Housing Act), the Federal Housing Commis sioner or the Housing and Home Finance Administrator Secretary may provide or obtain by contract or otherwise technical assistance in the planning for and

construction of such facilities.

(b) With a view to avoiding unnecessary duplication of existing staffs and facilities of the Federal Government, the Federal Housing Commissioner and the Housing and Home Finance Administrator are Secretary is authorized to utilize available services and facilities of any agency of the Federal Government in carrying out the provisions of this Act and title XI of the National Housing Act, and to pay for such services and facilities, either in advance or by way of reimbursement, in accordance with an agreement between either or both of them the Secretary and the head of such agency.

AMENDMENTS TO OTHRTEDERAL LAWS CONFORMING AMENDMENTS

SEC. 304 303. (a) (1) The sixth sentence of paragraph "Seventh" of section 5136 of the Revised Statutes, as amended (12 U.S.C. 24), is amended by inserting after "Federal Home Loan Banks," the following: "or obligations which are insured by the Federal Housing Commissioner Secretary under title XXI of the National Housing Act".

(2) The third sentence of the first paragraph of section 24 of the Federal Reserve Act, as amended (12 U.S.C. 371), is amended by inserting after "or sections 1471-1484 of title 42," the following: "or which are insured by the Federal Housing Commissioner Secretary pursuant to title XI of the National Housing Act,".

(b) Subsection (a) of section 304 of the Trust Indenture Act of 1939 (15 U.S.C. 77ddd) is amended by striking out the word "or" at the end of paragraph (8); by striking out the period at the end of paragraph (9) and inserting in lieu thereof a semicolon and the word "or"; and by adding after paragraph (9) a new paragraph as follows:

(10) any security issued under a mortgage or trust deed indenture as to which a contract of insurance under title XI of the National Housing Act is in effect; and any such security shall be deemed to be exempt from

the provisions of the Securities Act of 1933 to the same extent as though such security were specifically enumerated in section 3(a)(2), as amended, of the Securities Act of 1933 (15 U.S.C. 77c(a) (2)).”

(c) Section 263 of chapter X of the Bankruptcy Act (11 U.S.C. 663) is amended by adding at the end thereof the following: "Nothing contained in this chapter shall be deemed to affect or apply to the creditors of any corporation under a mortgage insured pursuant to title XXI of the National Housing Act."

(d) Section 212(a) of the National Housing Act is amended by adding at the end thereof the following new sentence: "The provisions of this section shall also apply to the insurance of any mortgage under title XI."

(e) Section 227 of the National Housing Act is amended by inserting in the first sentence of the introductory text after "or rehabilitated multifamily housing" the following: "or a property or project under title XI”.

Senator DOUGLAS. HUD as well as HEW are in agreement? Was there not a character in a novel who was called "Hud"? Mr. COHEN. Yes, there was. I don't know of any character in a novel called "HEW."

Senator DOUGLAS. I want you to "HEW" to the straight line. [Laughter.]

Thank you very much.

The next witness is Mr. Troy Norris, accompanied by Mr. O. R. Smith, Jr., and James Billingsley.

We are very happy to welcome you here.

STATEMENT OF TROY NORRIS, CHAIRMAN, CORINTH (MISS.) URBAN RENEWAL COMMISSION; ACCOMPANIED BY 0. R. SMITH, JR., ATTORNEY, AND JAMES BILLINGSLEY, DIRECTOR OF NEIGHBORHOOD YOUTH CORPS, CORINTH, MISS.

Mr. NORRIS. Thank you very much.

Senator DOUGLAS. We will listen to your statement. As I say, I must leave at noon because of some very vital bills on the floor. Mr. NORRIS. Yes, sir.

Mr. Chairman, distinguished members of the Senate Housing Subcommittee, testifying with me today is the Corinth Urban Renewal Commission attorney, O. R. Smith, Jr., and also James Billingsley, director of the Corinth Neighborhood Youth Corps. If there are any questions during the reading of the prepared statement, please do not hesitate to interrupt me, and we will attempt to answer your questions. As chairman of the City of Corinth Urban Renewal Commission, I would like to present the following testimony.

Corinth, Miss., is a typical small southern community and is located in northeast Mississippi 50 miles west of Florence, Ala., and 90 miles east of Memphis, Tenn. Our population is 13,870 people with a Negro population of 13.2 percent. The change of population in the surrounding area from 1950 until 1960 was minus 6.9 percent. The median family income a week is $35.86 and 41.2 percent of all the families have income under $3,000 per year. The highest median school year completed is 9.6 years, and 40 percent of all the housing is substandard. The purpose of the testimony today is done with the intent of sharing with you the successes, the problems, and the possible failures that have occurred in the city of Corinth by attempting to coordinate a broad spectrum of Federal programs with State and local efforts.

President Lyndon Johnson in his January 26 message to Congress said:

From the experience of three decades, it is clear to me that American cities require a program that will

Concentrate our available resources-in planning tools, in housing construction, in job training, in health facilities, in recreation, in welfare programs, in education-to improve the conditions of life in urban areas.

Join together all available talent and skills in a coordinated effort. Mobilize local leadership and private initiative, so that local citizens will determine the shape of their new city

Corinth has done all that it can do to accomplish the above objectives as outlined by the President. I believe that the following testimony will indicate that the only ingredient now missing in Corinth's program is interdepartment and interagency coordination at Federal level.

Senator, I would like to summarize this, but I would like to leave my statement for the record.

Senator DOUGLAS. Yes; the statement will be received and printed in the record, and we will study it. It is just this unfortunate fact I have got to help conduct debate at 12 o'clock.

Mr. NORRIS. Yes, sir; I understand that, sir.

Basically, Corinth is a small community that some 2 years ago worked with a group of Federal agencies in Washington to achieve a broad approach to community development. The Federal agencies included the Department of Labor, Health, Education, and Welfare, Commerce, and the Housing and Home Finance Agency.

We have urban renewal programs, OEO programs, Neighborhood Youth Corps programs. Really, it is the broad spectrum of Federal programs used to attack the cause of the poverty and blight of the city.

Possibly we are one of the few small communities in the United States that has been fortunate enough to be able to utilize this broad concept of programs.

However, we have run into several problems, and that is a problem of coordination on the Federal level. As we acquired more programs for our community, it became more and more difficult to work with the Federal Government. We found there were agencies that were jealous of each other. If their program was not the most important. program, then they would almost drop out of sight and would not want to cooperate as fully as possible.

However, one agency did work very closely with us, and without their help we would not have had a program. That is the Labor Department's Neighborhood Youth Corps.

Then there were key people in Housing and Home Finance Agency that would talk with us and understand what we were trying to do, and they helped move our program.

Senator DOUGLAS. Do you have any recommendations to make?

Mr. NORRIS. Yes, sir. There are a lot of small communities all over the United States that have problems, and it is very difficult for these communities to know who to contact and how to state their problem, and to get good effective action to help deal with these problems.

You know a smaller community doesn't have the resources of Roanoke, Va., New York City, and Atlanta, Ga., and it is hard for them to really be able to acquire the resources.