This section would authoriz an dem the Semeter of Boxing and Usher Development to undertake sug. Program- ci

demonstration relating to tie mission and programs of the Denontmen. gs he do termines to be necessary an EPPTOPTIETE. To car out stivita undạy the tion there would is authorizei . { ADOTONTISTAČŮ SE É Nums as The hi ngagoen All funds so appropriated won remall avaliabe until expanded poless specifi cally limited.

SECTION 502 GENERAI PROVISIONS

This section brings together under one heading & series of administrative and other provisions which are applicable to activities under section. 301

Subsection (a) of this section which is based on section. 1010 of the Domonsdag tion Cities and Metropolitan Development Act of 1966, and section 417 of the Housing and Urban Development Act of 1969, directs the Secretary, to the extent feasible, to require the use of advanced technology under programs administered by him, and to encourage and promote the acceptance and application of such nd vanced technology by all segments of the housing industry, communities, and the general public. In carrying out his activities under section 501, the Secretary shall assure, to the extent feasible, in connection with the construction, major re habilitation, or maintenance of any housing assisted under that section, that there is no restraint by contract, building code, zoning ordinance, or practice against the employment of new or improved tehnologies, tehniques, materials, and methods or of preassembled products which may reduce the cost or improve the quality of such construction, rehabilitation, and maintenance, and therefore stimulate expanded production of housing under this title, except where auch restraint is necessary to insure safe and healthful working and living conditions The subsection also contains a new authorization to the Secretary to waive, with respect to his activities under section 501, those provisions of the United States Housing Act of 1937 and other acts administered by him which impede the ne ceptance and application of new or improved technology.

Subsection (b) of this section is based on section 108 of the Housing and Urban Development Act of 1968. It provides that in order to encourage large sente po perimentation in the use of new technology with a view toward the ultimate mass production of housing and related facilities, the Secretary shall, where ar

Section 702(c) of the amended title would restate existing section 702(d) which permits the Secretary to set such further terms and conditions for grants as he determines to be desirable.

Section 702 (d) of the amended title would restate existing section 702(e) which requires the Secretary to consult with, and exchange information with, the Secretary of the Interior with respect to his activities under this title. Section 702 (e) of the amended title would authorize the Secretary to provide advice and technical assistance to States and local public bodies.

Section 703 of the amended title would authorize grants under the title only if the Secretary finds that such assistance is needed for carrying out a unified or officially coordinated program, meeting criteria established by him, for the provision and development of open space land. Such program must be either a part of, or consistent with, the comprehensively planned development of the urban

area.

Section 704 of the amended title would prohibit the conversion to other uses of open space land acquired with assistance under the title without prior approval of the Secretary. Such prior approval to be granted only upon satisfactory compliance with regulations established by the Secretary which shall require findings that (1) there is adequate assurance of the substitution of other open space land of as nearly as feasible equivalent usefulness, location, and fair market value; (2) the conversion and substitution are needed for orderly growth and development; and (3) the proposed uses of the converted and substituted land are in accord with the then applicable comprehensive plan for the urban area, meeting criteria established by the Secretary. The section is based upon, and is substantially similar to, section 764 of the Housing Act of 1961.

Section 705 of the amended title would authorize to be appropriated for purposes of making grants under the title not to exceed $460,000,000 prior to July 1. 1971 and such sums as may be necessary thereafter. Any amounts appropriated shall remain available until expended.

Section 707 of the amended title defines

(1) "open space land" to mean any land located in an urban area which has value for (A) park and recreational purposes, (B) conservation of land and other natural resources, or (C) historic, architectural, or scenic purposes.

(2) "urban area" to mean any area which is urban in character, including those surrounding areas which, in the judgment of the Secretary form an economic and socially related region, taking into consideration such factors as present and future population trends and patterns of urban growth, location of transportation facilities and systems, and distribution of industrial, commercial, residential, governmental, institutional, and other activities.

(3) "State" to mean any of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Territories and possessions of the United States, and Indian tribes, bands, groups and nations, including Alaska Indians, Aleuts, and Eskimos of the United States.

(4) "open-space uses" to mean any use of open-space land for (A) park and recreational purposes, (B) conservation of land and other natural resources, or (C) historic, architectural or scenic purposes.

SECTION 402-AUTHORIZATION FOR COMPREHENSIVE PLANNING

This section would amend section 701 (b) of the Housing Act of 1954 to increase the total amount authorized to be appropriated for comprehensive planning assistance after June 30, 1971, by such sums as may be necessary.

SECTION 403-AUTHORIZATION FOR WATER AND SEWER FACILITIES AND
NEIGHBORHOOD FACILITIES

This section would amend section 708(b) of the Housing and Urban Development Act of 1965 to increase the total amount authorized to be appropriated for grants after June 30, 1971 for basic water and sewer facilities and for neighborhood facilities by such sums as may be necessary. The existing authorization for appropriations for the advance acquisition of land program would be deleted.

SECTION 404-AUTHORIZATION FOR TRAINING AND FELLOWSHIP PROGRAM

This section would amend section 806 of the Housing Act of 1964 to anthorize to be appropriated such amounts as may be necessary for Fellowships for City Planning and Urban Studies and the Community Development Training Program.

SECTION 405-NEW COMMUNITIES PROGRAM

Subsection (a) of this section would amend section 407(a) of the Housing and Urban Development Act of 1968 to authorize the Secretary to issue obligations to the Secretary of the Treasury in an amount outstanding at any one time sufficient to enable the Secretary to carry out his functions with respect to guarantees covering the obligations of new community developers. Any obligations issued by the Secretary would have maturities and bear interest at a rate determined by the Secretary of the Treasury

Subsection (b) of this section would amend section 407 (d) of such Act to increase the aggregate of the outstanding principal obligations of new community developers which may be guaranteed at any one time from $250,000,000 to $400.000.000.

Subsection (c) of this section would amend section 412(d) of such Act to provide that any amounts authorized for any fiscal year for new community assistance grants but not appropriated may be appropriated for any succeeding fiscal year.

Subsection (e) of this section would add a new section 416 to such Act authorizing the Secretary to provide technical and advisory service to new community developers and to States, municipalities, and other political subdivisions and instrumentalities.

TITLE V-RESEARCH AND TECHNOLOGY

SECTION 501-TECHNICAL RESEARCH AND DEMONSTRATIONS

This section would authorize and direct the Secretary of Housing and Urban Development to undertake such programs of research, studies, testing and demonstration relating to the mission and programs of the Department as he determines to be necessary and appropriate. To carry out activities under this section there would be authorized to be appropriated such sums as may be necessary, All funds so appropriated would remain available until expanded unless specifically limited.

SECTION 502-GENERAL PROVISIONS

This section brings together under one heading a series of administrative and other provisions which are applicable to activities under section 501.

Subsection (a) of this section, which is based on section 1010 of the Demonstration Cities and Metropolitan Development Act of 1966, and section 417 of the Housing and Urban Development Act of 1969, directs the Secretary, to the extent feasible, to require the use of advanced technology under programs administered by him, and to encourage and promote the acceptance and application of such advanced technology by all segments of the housing industry, communities, and the general public. In carrying out his activities under section 501, the Secretary shall assure, to the extent feasible, in connection with the construction, major rehabilitation, or maintenance of any housing assisted under that section, that there is no restraint by contract, building code, zoning ordinance, or practice against the employment of new or improved tehnologies, tehniques, materials, and methods or of preassembled products which may reduce the cost or improve the quality of such construction, rehabilitation, and maintenance, and therefore stimulate expanded production of housing under this title, except where such restraint is necessary to insure safe and healthful working and living conditions. The subsection also contains a new authorization to the Secretary to waive, with respect to his activities under section 501, those provisions of the United States Housing Act of 1937 and other acts administered by him which impede the acceptance and application of new or improved technology.

Subsection (b) of this section is based on section 108 of the Housing and Urban Development Act of 1968. It provides that in order to encourage large-scale experimentation in the use of new technology with a view toward the ultimate mass production of housing and related facilities, the Secretary shall, wherever

feasible conduct programs under section 501 in which qualified organizations public and private, will submit plans for development and production of housing and related facilities using such new advances on Federal land or other land where local building regulations or variances from them permit such experimental construction. The Secretary may utilize the funds and authority available under section 501 to assist in the implementation of plans which he approves. Subsection (c) of this section is based on provisions in section 1010 of the Demonstration Cities and Metropolitan Development Act of 1966 and section 108 of the Housing and Urban Development Act of 1968. The Secretary would be authorized, in connection with projects under this title, to acquire and dispose of land and other property required for the project as he deems necessary. It further provides that any land which is excess property within the meaning of the Federal Property and Administrative Services Act of 1949, may be transferred to the Secretary upon his request if the Secretary determines that the land is suitable for use in furtherance of the purposes of section 502(b).

Subsection (d) of this section which is based on section 314 of the Housing Act of 1954, section 301 of the Housing Act of 1948, section 602 of the Housing Act of 1956, and section 1011 of the Demonstration Cities and Metropolitan Development Act of 1966, authorizes the Secretary to pay for the cost of writing and publishing reports on activities financed under section 501, and similar activities, not so financed, which are of significant value in furthering the purposes of that section. Information acquired could be disseminated in the form most useful to agencies of Federal, State and local governments, industry. and the public. The Secretary would also be authorized to provide advice and technical assistance as may be required in carrying out his activities under section 501.

Subsection (e) of this section is based on provisions in section 301 of the Housing Act of 1948, section 314 of the Housing Act of 1954, section 207 of the Housing Act of 1961, and sections 1010 and 1011 of the Demonstration Cities and Metropolitan Development Act of 1966. It authorizes the Secretary to carry out his functions under section 501 either directly, or by contract or grant. The making of advance and progress payments would be authorized and contracts made without advertising. Contracts or grants may be made for work to continue for not more than four years from the date thereof.

Subsection (f) of this section is based on title III of the Housing Act of 1948, section 602 of the Housing Act of 1956 and section 601 of the Economy Act of 1932 (31 U.S.C. 686). It requires the Secretary to utilize facilities of other Federal departments and agencies, to consult with and make recommendations to such agencies, and authorizes him to enter into working agreements with them; including the making of contracts or grants on behalf of such agencies or having such contracts or grants made on his behalf. The Secretary would also be authorized to work with, and enter into contracts with, State and local governments, industry and labor, educational and other organizations.

Subsection (g) of this section is based on provisions in section 602 of the Housing Act of 1956 and provides that the Secretary is authorized to obtain information from private and public sources. Such information may be used only for the purposes for which it is supplied, and no publication may be made whereby the information furnished by a particular source can be identified except with the consent of such source.

SECTION 583-REPEAL OF EXISTING RESEARCH AUTHORITIES

This section would repeal, effective July 1, 1971, except for contracts commitments, reservations, or other obligations entered into prior to that date, title III of the Housing Act of 1948, section 314 of the Housing Act of 1954, section 602 of the Housing Act of 1956, section 207 of the Housing Act of 1961, section 301 of the Housing and Urban Development Act of 1965, sections 1010 and 1011 of the Demonstration Cities and Metropolitan Development Act of 1966, and section 108 and subsection 1714(b) of the Housing and Urban Development Act of 1968.

TITLE VI-MISCELLANEOUS

SECTION 601-ADVICE AND ASSISTANCE WITH RESPECT TO HOUSING FOR LOWER

INCOME FAMILIES

This section would amend section 106 of the Housing and Urban Develop ment Act of 1968 to authorize cooperative as well as nonprofit sponsors to receive advice, assistance, and "seed money" loans with respect to the provision

of housing for lower income families. It would also consolidate and expand existing advice and assistance programs for lower income families-section 235(e) and 237 (e) (homeownership assistance) and section 15(10) of the U.S. Housing Act (tenant services grants) and provide statutory authorization for these programs under section 106. The program of tenant services grants now authorized under section 15(10) of the U.S. Housing Act of 1937 would be extended to low-income housing tenant organizations assisted under that Act and to nonprofit cooperative and limited dividend housing organizations or lower income tenant organizations in projects assisted under the National Housing Act or the Mortgage Credit Assistance Act.

SECTION 602-GENERAL ADMINISTRATIVE POWERS OF THE SECRETARY

This section would include among the administrative powers of the Secretary set forth in section 7 of the Department of Housing and Urban Development Act general authority to (1) keep in a consolidated checking account in the Treasury all funds made available from appropriations, recoveries, fees or otherwise in connection with any loan or grant program-such funds to be available for administrative expenses if authorized by the Congress, (2) foreclose on, acquire, manage, and sell property in connection with loan and grant programs, (3) establish fees and charges to cover such non-administrative expenses as costs of inspection, project review, financing service, project audit, etc.—such fees and charges to be available for operating expenses of the Department in providing similar services on a consolidated basis, (4) receive uncompensated services and bequests and gifts, and (5) establish advisory commissions.

Numbers 1 and 2 above (except for the deletion of provisions requiring a Government Corporation business-type budget) are similar to existing authorities in section 402 of the Housing Act of 1950 and are incorporated by reference in many of the Department's loan and grant statutes.

SECTION 603-EQUITY SKIMMING

This section would make it a crime to engage in the practice of purchasing one- to four-family dwellings subject to FHA-insured or VA loans and applying the rent receipts to one's own use instead of making payments on such loans. For the protection of those purchasing in good faith, the criminal penalties provided by this section would only apply if the loan was in default at time of purchase or within one year subsequent to the purchase and would not apply to the purchaser of only one such dwelling. The section is intended to deter the so-called practice of "equity skimming," which has resulted in losses to the FHA and VA in the past.

SECTION 604-ADDITIONAL AUTHORIZATION FOR COLLEGE HOUSING DEBT SERVICE

GRANTS

This section would amend section 401 (f) (2) of the Housing Act of 1950 to increase the aggregate amount of contracts which may be entered into after June 30, 1971 to make annual debt service grants to help finance college housing facilities by such sums as may be necessary.

SECTION 605-NATIONAL BANKING ACT

This section would authorize National banks to underwrite and deal in obligations guaranteed under the New Communities Act of 1968.

SECTION 606-INCREASED FEES FOR CONSULTANT SERVICES

This section would amend section 7(e) of the Department of Housing and Urban Development Act of increase the maximum amount payable to consultants from the present $100 per diem to the daily equivalent to the highest rate for grade GS-18.

SECTION 607-EFFECTIVE DATE

This section would provide that titles I, II and III of this Act shall be effective not later than 180 days following the date of enactment except as the Secretary of Housing and Urban Development shall prescribe an earlier date respect to all or any part of such titles.