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1 tion of facilities in urban areas to determine the feasibility 2 of the multidevelopment and use of such facilities for housing 3 and related facilities for persons of low and moderate income. 4 Whenever the Secretary determines, after such consultation, 5 that such multidevelopment and use is feasible in the case of 6 any such facilities, he shall notify the agency concerned and 7 such agency shall cause the project site to be developed, by 8 the provision of air rights, land in the right of way, or other9 wise as may be appropriate, so as to provide housing and re10 lated facilities for persons of low and moderate income. Land 11 and interests in land, including air rights sites, so developed 12 for such purpose may be transferred by sale, lease, or other13 wise by such agency to any State or local public agency, or 14 any private nonprofit, limited dividend, or cooperative entity 15 which agrees to develop and use the same only for such hous16 ing and related facilities. Any such transfer shall be made 17 subject to a reversionary interest in the Government in the 18 event the property or rights transferred are ever put to a use 19 other than that for which the transfer was made.

20 INCOME LIMITATIONS UNDER SECTIONS 235 AND 236 OF

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THE NATIONAL HOUSING ACT

SEC. 204. Section 235 (h) (2) and 236 (i) (2) of the

23 National Housing Act are amended by inserting after the 24 first sentence of each such section the following: "Any part 25 of the income of any family which is excluded for purposes

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1 of applying the income limitations prescribed pursuant to such 2 sections 2 (2) and 15(7) (b) (ii) shall be excluded in de

3 termining family income for purposes of applying the limi4 tations of this paragraph."

5

6

SALE OF PUBLIC HOUSING PROJECTS TO CERTAIN

COOPERATIVES

7 SEC. 205. Paragraph (9) of section 15 of the United 8 States Housing Act of 1937 is amended by inserting "(a)" 9 after "(9)" and by adding at the end of such paragraph the 10 following:

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"(b) Notwithstanding any other provisions of this Act, 12 but subject to the provisions of any contract with the Au13 thority, any public housing agency may permit a coopera

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tive to enter into a contract for the acquisition of a low-rent 15 housing project from the public housing agency upon the 16 terms set forth in subparagraphs (A), (B), and (C) of 17 paragraph (a); except that for the purposes of this para18 graph (b) the term 'purchaser', as used in such subparagraphs, refers to the cooperative acting on behalf of its 20 members and the term 'dwelling unit', as used therein, re21 fers to the housing project in its entirety. Admission to

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222

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membership in any such cooperative shall be limited:

"(A) to those who intend to reside in the project

which is to be owned and operated on a nonprofit basis;

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2

3

4

5

6

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"(B) to those whose incomes do not exceed the limits prescribed by the Secretary for occupants of

projects financed with a mortgage insured under section 221 (d) (3) which bears interest at the below-market

interest rate prescribed in the proviso of section 221 (d) (5).

7 In such admissions to cooperative membership, preference 8 shall be given first to eligible present residents of the low-rent 9 housing project being acquired by the cooperative, and sec10 ond, to residents of other low-rent housing projects under 11 the jurisdiction of the public housing agency involved whose 12 incomes have increased beyond the approved maximum income limits for continued occupancy in such low-rent housing.

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"(c) Before approving the disposition of any dwell

ing unit or project pursuant to paragraph (a) or (b), the 16 Authority shall make a finding that such disposition will not 17 adversely affect the low-rent housing program of the public 18 housing agency involved.

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"(d) The Authority shall continue to pay up to the amount of the guaranteed annual contributions pledged to payment of a public housing agency's outstanding obliga

tions issued in respect to any dwelling unit or project ac

quired or contracted to be acquired pursuant to paragraph 24 (a) or (b) until such obligations together with interest 25 thereon have been fully paid."

DIGEST OF S. 3025

Urban Land Improvement and Housing Assistance Act-Authorizes Federal incentive grants to State and local governments to strengthen their capacity to utilize land more productively and, thereby, to increase housing opportunities within their jurisdictions. Utilizes Federal supplementary and incentive grants to strengthen local will and capacity to modernize those laws and practice which have such an enormous effect on land use and development.

Stimulates a greater commitment of State and local funds to the housing and land development areas, and thereby, establishes a pattern of shared governmental responsibilities. Establishes supplementary Federal grants—to pay 50 percent of the local share for those assisted local programs and services which would be affected by more intensive land utilization and expanded housing. Provides for supplementary Federal grants for such impacted local services as transportation, education, water and sewers. Permits Federal grants, in addition to supplements, for up to 50 percent of the amount of local tax abatement for low and moderate income housing.

Denies Federal assistance under HUD programs to those localities which exclude publicly-assisted housing for low- and moderate-income persons through restrictive land use practices. Asserts that Federal support would thus not be available to subsidize land development in localities with overly restrictive, unreasonable, and discriminatory patterns of land use control.

Authorizes Federal grants for the "write-down" of such properties, provided they are turned over to a nonprofit cooperative or limited dividend institution which would rehabilitate and use them for low- and moderate-income housing. Provides for an incentive supplementary grants to localities to upgrade the neighborhoods in which such properties are located. Increases significantly State participation in the effort to rebuild our cities. Provides for Federal grants to those States which establish State housing agencies, programs of assisting local tax abatement for low- and moderate-income housing, programs for the training and employment of low-income persons and for the utilization of minority enterprises in connection with housing and urban development projects, and research and demonstration projects of new low-cost construction materials and techniques.

Authorizes Federal assistance and loans to States for the establishment of land development agencies-which may be corporations. Asserts that such State agencies must be empowered to acquire, assemble, hold, plan, and develop land so as to create new communities.

Authorizes the following appropriations for such programs $50 million for the present fiscal year, $100 million for fiscal year 1971, and $150 million for the fiscal years thereafter.

Authorizes grants for technical assistance and training for tenant management, operation, and services. Authorizes the multi-development and multiuse of air rights and land in the right-of-way, in connection with the construction of facilities in urban areas, so as to provide housing for related facilities for persons of low and moderate income. Requires two reports to the Congress: the first, by the President, for the establishment of a national policy on the location of Federal buildings and offices which shall give consideration also to social impact; and the second, by the Secretary of Housing and Urban Development, after consultation with the Secretary of Defense, on the possible use of military installations located in urban areas for housing and related community facilities.

91ST CONGRESS 1ST SESSION

S. 3239

IN THE SENATE OF THE UNITED STATES

DECEMBER 11, 1969

Mr. JAVITS (for himself and Mr. GOODELL) introduced the following bill; which was read twice and referred to the Committee on Banking and Currency

A BILL

To amend section 302 (b) of the National Housing Act. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That the second sentence of section 302 (b) of the National 4 Housing Act is amended by inserting after "(1)” the fol5 lowing: "is insured under section 236 or".