40 1 dential or nonresidential character or reuse of the urban 6 SEC. 401. The fourth sentence of section 10 (a) of the 7 United States Housing Act of 1937 is amended by inserting 8 immediately before the comma after the word "elimination", 9 where the word first appears, the following: ", as certified 10 by the local governing body". 11 12 GREATER USE OF EXISTING PRIVATE HOUSING SEC. 402. Section 10 (c) of the United States Housing 13 Act of 1937 is amended by striking out "And provided" 14 and inserting in lieu thereof “Provided", and by inserting a 15 colon and the following proviso before the period at the 16 end thereof: "And provided further, That the amount of the 17 fixed annual contribution which would be established under 18 this Act for a newly constructed project by a public housing 19 agency designed to accommodate a number of families of 20 a given size and kind may be established, as a maximum 21 annual contribution in lieu of any other guaranteed con22 tribution authorized under this section, for a project by such 23 public housing agency which would provide housing for the 24 comparable number, sizes and kinds of families through the 25 acquisition, acquisition and rehabilitation, or use under lease 3 4 5 41 of existing structures which are suitable for low-rent housing use and obtainable in the local market". INCREASE IN AUTHORIZATION FOR ANNUAL CONTRIBUTIONS SEC. 403. Section 10 (e) of the United States Housing 6 Act of 1937 is amended by inserting immediately following 7 the comma after the words "per annum", the following: 8 "which limit shall be increased by $47,000,000 on the date 9 of enactment of the Housing and Urban Development Act 10 of 1965, and by further amounts of $47,000,000 on July 1 11 in each of the years 1966, 1967, and 1968, respectively,". 12 224 13 14 SALE OF FEDERALLY OWNED PROJECTS TO PRIVATE PURCHASERS SEC. 404. The first sentence of section 12 (c) of the 15 United States Housing Act of 1937 is amended to read as 16 follows: "The Authority may sell a Federal project only 17 to a public housing agency or to a nonprofit body for use 18 as low-rent housing." TITLE V-COLLEGE HOUSING INCREASE IN AUTHORIZATION FOR COLLEGE HOUSING LOANS SEC. 501. Section 401 (d) of the Housing Act of 1950 24 "(d) To obtain funds for loans under subsection (a) 42 1 of this section, the Administrator may issue and have out2 standing at any one time notes and obligations for purchase 3 by the Secretary of the Treasury in an amount not to ex4 ceed $2,985,000,000, which amount shall be increased by 5 $285,000,000 on July 1 in each of the years 1966 and 6 1967, and by $275,000,000 on July 1, 1968: Provided, 7 That the amount outstanding for other educational facilities, 8 as defined herein, shall not exceed $295,000,000, which 9 limit shall be increased by $30,000,000 on July 1 in each 10 of the years 1965 through 1968: Provided further, That 11 the amount outstanding for hospitals, referred to in clause 12 (2) of section 404 (b) of this title, shall not exceed 13 $220,000,000, which limit shall be increased by $15,000,000 14 on July 1 in each of the years 1965 through 1968." 15 TITLE VI-GRANTS FOR BASIC PUBLIC WORKS, 16 17 18 19 NEIGHBORHOOD FACILITIES, AND THE AD VANCE ACQUISITION OF LAND PURPOSE SEC. 601. The purpose of this title is to assist and en20 courage the communities of the Nation fully to meet the needs 21 of their citizens by making it possible, with Federal grant 22 assistance, for their governmental bodies (1) to construct 23 adequate basic water and sewer facilities needed to promote 24 the efficient and orderly growth and development of our com25 munities; (2) to construct neighborhood facilities needed to 43 1 enable them to carry on programs of necessary social serv 2 ices; and (3) to acquire, in a planned and orderly fashion, 3 land to be utilized in connection with the future construction 4 of public works and facilities. 5 6 GRANTS FOR BASIC WATER AND SEWER FACILITIES SEC. 602. (a) The Housing and Home Finance Ad7 ministrator (hereinafter referred to as the "Administrator”) 8 is authorized to make grants to local public bodies and agen9 cies to finance specific projects for basic public water and 10 sewer facilities (including works for the storage, treatment, 11 purification, or distribution of water). 12 (b) The amount of any grant made under the authority 13 of this section shall not exceed 40 per centum of the develop14 ment cost of that portion of the project necessary to enable 15 the project to adequately serve the reasonably foreseeable 16 growth needs of the area. 17 (c) No grant shall be made under this section in con18 nection with any project unless the Administrator determines 19 that the project will serve an area which is expected to expe20 rience significant population growth in the reasonably fore21 seeable future and that the project is (1) designed so that 22 an adequate capacity will be available to serve the reasonably 23 foreseeable growth needs of the area, (2) consistent with a 24 program meeting criteria established by the Administrator, for a unified or officially coordinated areawide water or sewer 25 44 1 facilities systems as part of the comprehensively planned 2 development of the area, except that prior to July 1, 1968, 3 grants may, in the discretion of the Administrator, be made 4 under this section when such a program for an area wide 5 water and sewer facilities system is under active prepara6 tion, although not yet completed, if the facility for which 7 assistance is sought can reasonably be expected to be required 8 as a part of such program, and there is urgent need for the 9 facility, and (3) necessary to orderly community develop 10 11 12 233 13 ment. GRANTS FOR NEIGHBORHOOD FACILITIES SEC. 603. (a) The Administrator is authorized to make grants in accordance with the provisions of this section, to 14 local public bodies and agencies to finance specific projects 15 for neighborhood facilities. 16 (b) The amount of any grant made under the authority 17 of this section shall not exceed 66 per centum of the develop18 ment cost of the project for which the grant is made (or 75 19 per centum of such cost in the case of a project located in 20 an area which at the time the grant is made is designated 222 21 as a redevelopment area under section 5 of the Area Redevel 22 opment Act). 23 (c) No grant shall be made under this section for any 24 project unless the Administrator determines that the project 25 will provide a neighborhood facility which is (1) necessary |