91ST CONGRESS 2D SESSION S. 4181 IN THE SENATE OF THE UNITED STATES AUGUST 4, 1970 Mr. GOODELL (for himself and Mr. BROOKE) introduced the following bill; which was read twice and referred to the Committee on Banking and Currency A BILL To encourage and assist in the establishment of community oriented and sponsored nonprofit organizations to provide at reasonable cost urgently needed management services for low- and moderate-income housing in declining neighborhoods. 1 Be it enacted by the Senate and House of Representa 2 tives of the United States of America in Congress assembled, 3 4 SHORT TITLE SECTION 1. This Act may be cited as the "Housing 5 Management Services Act". 6 7 8 FINDINGS AND PURPOSE SEC. 2. (a) The Congress finds that (1) a serious shortage exists in management serv 2 1 2 3 4 5 6 7 8 9 10 11 121 13 14 15 ices and trained management personnel for low- and moderate-income housing; (2) the absence of adequate management services has discouraged investors and developers from investing in and developing of low- and moderate-income housing; (3) the absence of adequate management services has been a contributing cause to the deterioration of lowand moderate-income housing; (4) lack of investment in or development of, and deterioration of low- and moderate-income housing has been a contributing cause to housing abandonment; (5) housing abandonment dislocates families and decreases the number of housing units and leads to irreversible neighborhood blight and decline. (b) It is the purpose of this Act to encourage and as16 sist in the establishment of community oriented and spon17 sored nonprofit organizations to provide at reasonable cost 18 urgently needed management services for low- and moderate19 income housing in declining neighborhoods. (1) The term "housing management corporation" means a corporation organized and licensed in accordance 24 with the provisions of section 4. 24 25 (2) The term "housing management services" means 3 1 services required for the effective management and main2 tenance of housing, including without being limited to rent 3 collection, bookkeeping, filling of vacancies, hiring of per4 sonnel, arranging for insurance and necessary repairs, and 5 arranging for purchase of supplies, fixtures, and utilities. (3) The term "Secretary" means the Secretary of 7 Housing and Urban Development. 6 8 ORGANIZATION OF HOUSING MANAGEMENT CORPORATIONS 9 SEC. 4. (a) A housing management corporation is a 10 public or private nonprofit or limited-profit body corporate, 11 organized and chartered under State law solely for the pur12 pose of performing the functions and conducting the ac13 tivities contemplated under this Act. It shall possess the 14 powers reasonably necessary to perform such functions and 15 conduct such activities. The area in which it carries on its 16 operations shall be subject to the approval of the Secretary. (b) It shall be the function of a housing management 18 corporation to provide economical and efficient housing man19 agement services for public and private low- and moderate20 income rental housing (including cooperatives and con21 dominiums) situated in areas where such services are not 22 otherwise being adequately or economically provided. A cor23 poration may also provide technical and consulting services 24 with respect to housing management in such areas, and may 17 4 1 establish programs for the training of housing management 2 personnel to serve area needs. 3 (c) (1) The articles of incorporation of a housing man4 agement corporation shall specify, in accordance with reg5 ulations prescribed by the Secretary, that the board of di6 rectors shall consist of an odd number of members, one of 7 whom shall be chairman and shall be appointed by the other 8 members, and of the remaining members, one-half their num9 ber shall be representative of the tenants and community 10 groups in the area of the operation of the corporation, and 11 one-half their number shall be representative of the owners 12 and the housing management sector. 13 (2) The articles of incorporation of a housing manage14 ment corporation may also contain such other provisions not 15 inconsistent with this Act as the corporation deems appro16 priate for the regulation of its business and the conduct of its 17 affairs. Such articles and any amendments thereto shall be 18 subject to approval by the Secretary. 19 (d) The articles of incorporation of a housing management corporation shall be forwarded to the Secretary for 21 consideration and approval or disapproval. The Secretary 22 shall not approve the articles of incorporation of any such corporation, unless he finds (1) that the area to be served by the corporation 5 1 contains a high concentration of low- or moderate-income 2 3 4 5 6 7 8 9 10 housing; (2) that such housing is substantially characterized by an inadequacy of housing management services; and (3) that there exists a reasonable probability of successful operation of the corporation in providing urgently needed management services in such areas provided for in this Act. If the Secretary approves the articles of incorporation of any such corporation, he shall issue to the corporation a 11 license to perform the functions specified in this Act. 122 POWERS AND FUNCTIONS OF SECRETARY 13 SEC. 5. (a) In carrying out the purposes of this Act, 14 the Secretary is authorized (1) to conduct research and development activities to devise new low-cost methods of housing management; (2) to provide technical assistance, advice, and consultation with respect to, and to develop evaluation criteria for, the development and operation of housing management corporations; (3) to provide a clearinghouse for information with respect to housing management corporations and the services which they can provide; and (4) to provide financial assistance to housing man 48-279 O 70 pt. 2 49 |