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 experi mental 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 re ive 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 with respect to all or any part of such titles.

91ST CONGRESS 1ST SESSION

S. 2855

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 3, 1969

Mr. BAKER introduced the following bill; which was read twice and referred to the Committee on Banking and Currency

A BILL

To amend section 523 of the Housing Act of 1949 to permit sale of rural housing sites to or for the benefit of qualified lower income families in addition to participants in selfhelp housing programs, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That section 523 of the Housing Act of 1949 is amended 4 by inserting before the period at the end of subsection (a) 5 the following: ", and (3) to assist in making housing sites 6 in rural areas available for purchase by families, nonprofit 7 organizations, and cooperatives eligible for assistance under 8 section 235 or 236 of the National Housing Act of section 9 521 of this Act".

91ST CONGRESS 1ST SESSION

S. 2901

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 16, 1969

Mr. EASTLAND introduced the following bill; which was read twice and referred to the Committee on Banking and Currency

A BILL

To amend the Housing and Urban Development Act of 1968 (82 Stat. 476), and for other purposes.

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Be it enacted by the Senate and House of Representa

2 tives of the United States of America in Congress assembled,

3 That this Act may be cited as the "Major Disaster Insurance 4 Act of 1969".

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SEC. 2. Section 1305 of the Housing and Urban Devel6 opment Act of 1968 (Public Law 90-448; 82 Stat. 476), 7 is hereby amended by adding a new subsection at the conclu8 sion thereof, as follows:

9 (d) In making decisions or determinations as to which 10 States or areas (or subdivisions thereof) flood insurance shall

11 be made available, the Secretary shall afford a priority to any

2

1 State or area (or subdivisions thereof) determined by the 2 President subsequent to August 1, 1969, to have suffered a 3 major disaster pursuant to the Act entitled "An Act to 4 authorize Federal assistance to States and local governments 5 in major disasters, and for other purposes", approved Sep6 tember 30, 1950, as amended (42 U.S.C. 1855–1855g). 7 SEC. 3. Subsection (c) of section 1361 of the Housing 8 and Urban Development Act of 1968 (Public Law 909 448; 82 Stat. 476), is hereby amended by substituting a colon for the period at the conclusion thereof, and adding the following: "Provided, however, That no State or local government shall be encouraged or required to adopt any measure, permanent or temporary, which would prevent or prohibit an owner of residential property from

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repairing, rebuilding, or reconstructing a residence on such

property: And provided further, That no State or local

government shall be encouraged or required to adopt any

measure, permanent or temporary, which would prevent

or prohibit the use of land for commercial or manufacturing purposes where it is usual, customary, or necessary that a particular business or manufacturing establishment be situated on such land.”

SEC. 4. Subsection (a) of section 1309 of the Housing and Urban Development Act of 1968 (Public Law 90448; 82 Stat. 476), is hereby amended by changing the