The enactment of S. 2977 would not affect the functions and responsibilities of GSA, and we have no comments to make as to the desirability of the proposed legislation. The Bureau of the Budget has advised that, from the standpoint of the administration's program, there is no objection to the submission of this report to your . committee. DEAR MR. CHAIRMAN: This is in response to your letter of February 26, 1966. requesting the comments of the Small Business Administration on S. 2977, a bill to provide incentives to planned metropolitan development and to otherwise assist urban development. The bill contains a number of proposals to promote sound metropolitan development and to render more effective the various forms of assistance available to growing urban areas from the Federal Government and from State and local governments. We would be guided by the views of the Secretary of Housing and Urban Development regarding the merits of these measures. Of particular interest to SBA is the proposal of S. 2977 authorizing the Secretary to make grants for the establishment of urban information centers to serve as clearinghouses for data on metropolitan needs and on the Federal, State, and local facilities available for meeting them. Such centers would be a useful instrumentality for publicizing SBA's small business assistance programs and for coordinating such programs with other governmental efforts to better economic conditions in our cities. The Bureau of the Budget has advised that there is no objection to the submission of this report and that enactment of this legislation would be in accord with the President's program. Sincerely, (Signed) Ross D. DAVIS. Executive Administrator. FEDERAL HOME LOAN BANK BOARD, Hon. A. WILLIS ROBERTSON, Chairman, Committee on Banking and Currency, DEAR MR. CHAIRMAN: In response to your request, the Federal Home Loan Bank Board hereby submits its views with respect to S. 2977 of the present Congress, which if enacted would become the Urban Development Act. Title I of this bill would place authority in the Secretary of Housing and Urban Development to make supplementary grants to State and local public bodies to assist in carrying out development projects (as defined in the bill meeting comprehensive planning and other specified requirements. Title IV would authorize the Secretary to make grants to States and metropolitan-area agencies (as defined in the bill) to help finance demonstration programs for the assembly, correlation, and dissemination of information and data needed for improving, coordinating, and more effectively utilizing governmental and other programs and activities available for the solution of local urban problems. Titles II and III of the bill would make amendments to certain existing Federal statutory programs. Title II would broaden title X of the National Housing Act to provide mortgage insurance thereunder for "new communities" as set forth in that title. Title III would increase certain dollar limitations in the Urban Mass Transportation Act of 1964. The Federal Home Loan Bank Board would favor the enactment of this legislation. The new provisions, along with those of an amendatory nature. would strengthen the Federal assistance available to urban communities for the formulation and implementation of comprehensive metropolitan planning. This would be true not only as to the development of new areas and the use of new approaches but also in the revitalization of existing areas and the utilization of programs already available. Informal advice has been received from the Bureau of the Budget that enactment of this proposed legislation would be in accord with the program of the President. DEAR MR. CHAIRMAN: Reference is made to your letter of February 26, 1966, asking us for a report on S. 2977 which, if enacted, would be cited as the "Urban Development Act." The purpose of the bill is stated in its title as being to provide incentives to planned metropolitan development and to otherwise assist urban development. Such assistance and incentives would be provided largely in the form of grants and loans. We have no particular information concerning the desirability of the proposed legislation and since the purpose thereof and the means by which it would be accomplished appear to involve matters of policy for the Congress to determine, we offer no comments concerning the bill. DEAR MR. CHAIRMAN: This letter is in response to your request of February 26, 1966, for a report on S. 2977, a bill to provide incentives to planned metropolitan development and to otherwise assist urban development. This bill would provide (1) supplementary grants for development projects in metropolitan areas to provide incentive for metropolitanwide comprehensive planning and programing, (2) mortgage insurance and other assistance for the development of new communities, (3) loans to land development agencies to finance the acquisition of land for the development of well-planned residential neighborhoods, subdivisions, and communities, (4) an increase in the grant authorization under the Urban Mass Transportation Act of 1964, and (5) grants for demonstration programs for urban information centers which would increase the effectiveness of use of information and data needed for utilizing governmental and other programs for the solution of local urban problems. We are in agreement with the objectives of this administration bill and believe that it will provide for more orderly community development and growth. The programs it proposes, such as the grant program proposed for development projects to assist planned metropolitan development, will undoubtedly supplement and affect programs of this Department. In respect to the program to encourage new communities, we are particularly interested in the health aspects of the provisions respecting water and sewerage facilities. We believe that the bill will contribute much to the well-being of the Nation, and we look forward to cooperating with the Department of Housing and Urban Development in implementing it. In view of the above, we recommend enactment of S. 2977. We are advised by the Bureau of the Budget that enactment of this bill would be in accord with the program of the President. Sincerely, (Signed) WILBUR J, COHEN, EXECUTIVE OFFICE OF THE PRESIDENT, Hon. A. WILLIS ROBERTSON, Chairman, Committee on Banking and Currency, DEAR MR. CHAIRMAN: This is in reply to your request for comments on S. 2977, 89th Congress, a bill to provide incentives to planned metropolitan development and to otherwise assist urban development. The Office of Emergency Planning favors the objective of the proposed bill which is designed to promote effective metropolitan development in growing urban areas. However, we defer to those Federal agencies having a more direct interest in the subject matter on the specific provisions of the bill. From the standpoint of the administration's program, the Bureau of the Budget advises that it has no objection to the submission of this report. Sincerely, (Signed) FRANKLIN B. DRYDEN, Acting Director. DEPARTMENT OF THE INTERIOR, Hon. A. WILLIS ROBERTSON, Chairman, Committee on Banking and Currency, OFFICE OF THE SECRETARY, Washington, D.C., May 25, 1966. DEAR SENATOR ROBERTSON: Your Committee has requested the report of this Department on S. 2977, a bill "To provide incentives to planned metropolitan development and to otherwise assist urban development." We recommend enactment of the bill with the amendments recommended herein. Title II of the bill amends the National Housing Act to qualify new commodities for mortgage insurance. Title III amends the Urban Mass Transportation Act of 1964 authorizing additional appropriations. These titles do not directly affect the programs of this Department. Title I of the bill does concern this Department. This title authorizes supple mental grants to State and local agencies carrying out development projects in metropolitan areas meeting the criteria established by the bill. The maximum supplemental grant shall be 20 percent of the project cost. The purpose of these grants is to encourage comprehensive metropolitan planning and programming. Development projects cover projects receiving Federal grants under eight specific authorities, including the Land and Water Conservation Act of 1965 which is administered by this Department. We believe that an additional program recently submitted as an executive communication should be included, namely, the "Clean Rivers Restoration Act of 1966," which provides 30 percent grants for the construction of waste treatment works on a river basin basis. Accordingly, we recommend that the bill be amended by inserting after the semicolon on page 7, line 13, the following: "section 107 of the Clean Rivers Restoration Act of 1966;". Title IV of the bill provides new authority for grants for urban information centers. We favor the establishment of such centers. The Bureau of the Budget has advised that there is no objection to the presentstion of this report and that S. 2977 is in accord with the President's program. Sincerely yours, STEWART L. UDALL, Secretary of the Interior. 89TH CONGRESS 2D SESSION S. 2978 IN THE SENATE OF THE UNITED STATES FEBRUARY 24, 1966 Mr. SPARKMAN introduced the following bill; which was read twice and referred to the Committee on Banking and Currency A BILL To amend and extend laws relating to housing and urban development. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Housing and Urban 4 Development Amendments of 1966". 5 TITLE I-HOUSING AND URBAN DEVELOPMENT 9 SEC. 101. Section 2 of the National Housing Act is 10 amended by adding at the end of subsection (f) a new 11 sentence as follows: "The amount of such premium charge 2 1 2 with respect to loans made or refinanced within one year after the date of enactment of the Housing and Urban De 3 velopment Amendments of 1966 may be included in com 4 puting the cost of improvements or of refinancing and may be deducted by the lender from the loan proceeds." 5 6 7 COOPERATIVE HOUSING INSURANCE FUND SEC. 102. Section 213 of the National Housing Act is 8 amended by (1) striking out ", but only in cases where the consent of the mortgagee or lender to the transfer is obtained or a request by the mortgagee or lender for the transfer is received by the Commissioner within such period of time after the date of the enactment of this subsection as the Commissioner shall prescribe" preceding the colon before the proviso in subsection (m); (2) striking out "insured under this section and sections 207, 231, and 232” in subsection (n) and inserting in lieu thereof "the insurance of which is the obligation of either the management fund or the general insurance fund"; and (3) adding a new sentence at the end of subsection (n) as follows: "Premium charges on the insurance of mortgages or loans transferred to the management fund or insured pursuant to commitments transferred to the management fund may be payable in debentures which |