the third sentence thereof: "Provided, That the Authority may, in addition to the payments guaranteed under the contract, pay not to exceed $120 per annum per dwelling unit occupied by an elderly family on the last day of the project fiscal year where such amount, in the determination of the Authority, was necessary to enable the public housing agency to lease the dwelling unit to the elderly family at a rental it could afford and to operate the project on a solvent basis".

DWELLING UNIT AUTHORIZATION

SEC. 504. Section 10(e) of the United States Housing Act of 1937 is amended by

(a) striking out the first three sentences and inserting in lieu thereof the following: "The Authority is authorized to enter into contracts for annual contributions aggregating not more than $336,000,000 per annum of which not more than 15 per centum shall be expended within any one State: Provided, That no such new contract for additional units shall be entered into after the date of approval of the Housing Act of 1961 except with respect to low-rent housing for a locality respecting which the Administrator has made the determination and certification relating to a workable program as prescribed in section 101 (c) of the Housing Act of 1949, and that the Authority shall enter into only such new contracts for preliminary loans as are consistent with the number of dwelling units for which contracts for annual contributions may be entered into."; and

(b) striking out section 10 (i) and redesignating section "15 (10)" as section "10(i)", and striking out section 21 (d).

GREATER LOCAL RESPONSIBILITY FOR ADMISSION POLICIES

SEC. 505. (a) Section 10(g) of the United States Housing Act of 1937 is amended to read as follows:

"(g) Every contract for annual contributions for any low-rent housing project shall provide that

"(1) the maximum income limits fixed by the public housing agency shall be subject to the prior approval of the Authority and the Authority may require the agency to review and revise such limits if the Authority determines that changed conditions in the locality make such revisions necessary in achieving the purposes of the Act;

"(2) the public housing agency shall adopt and promulgate regulations establishing admission policies which shall give full consideration to its responsibility for the rehousing of those displaced by urban renewal or other governmental action, to the applicant's status as a serviceman or veteran or relationship to a serviceman or veteran or to a disabled serviceman or veteran, and to the applicant's age or disability, housing conditions, urgency of housing need and source of income; and

"(3) the public housing agency shall determine, and so certify to the Authority, that each family in the project was admitted in accordance with duly adopted regulations and approved income limits; and the public housing agency shall make periodic reexaminations of the incomes of families living in the project and shall require any family whose income has increased beyond the approved maximum income limits for continued occupancy to move from the project unless the public housing agency determines that, due to special circumstances, the family is unable to find decent, safe, and sanitary housing within its financial reach although making every reasonable effort to do so, in which event such family may be permitted to remain for the duration of such a situation if it pays an appropriate rent.". (b) Sections 10(m) and 15 (8) of such Act are repealed.

DEMONSTRATION PROGRAMS

SEC. 506. Section 11 of the United States Housing Act of 1937 and its heading are amended to read as follows:

"DEMONSTRATION PROGRAMS

"SEC. 11. The Authority is authorized to make grants to public or private bodies or agencies, subject to such terms and conditions as it shall prescribe, for the purposes of developing and demonstrating new or improved means of providing housing and a suitable living environment for low-income families and for obtain

ing maximum efficiency and economy in the construction and management of lowrent housing. Advances and progress payments may be made, under any contract to make grants under this section, without regard to the provisions of section 3648 of the Revised Statutes, and the Administrator may waive any of the requirements of this Act to the extent he deems necessary to accomplish the purposes of this section. There is hereby authorized to be appropriated not exceeding $10,000,000 for grants to carry out the purposes of this section, and any amount so appropriated shall remain available until expended.".

INCREASED COST LIMITS FOR UNITS FOR THE ELDERLY-NON-FEDERAL AID TO PROJECTS

SEC. 507. (a) Section 15 of the United States Housing Act of 1937 is amended by

(1) inserting in paragraph (5) after the second parenthetical clause the following: "on which the computation of any annual contributions under this Act may be based";

(2) inserting "$3,000" after the words "Alaska or" in paragraph (5); (3) striking out paragraph (6) and redesignating paragraph “(9)” to be paragraph "(6)"; and

(4) striking out "entitled to a first preference as provided in section 10(g)" in paragraph (7) (b) and inserting in lieu thereof "displaced by urban renewal or other governmental action".

(b) Section 10(h) of such Act is amended by inserting the following after the word "project" the third time it appears therein: "(exclusive of any portion thereof which is not assisted by annual contributions under this Act)".

TITLE VI-URBAN RENEWAL AND PLANNING

POOLING GRANTS-IN-AID BETWEEN PROJECTS WITH TWO-THIRDS AND THREE-FOURTHS FEDERAL PARTICIPATION

SEC. 601. (a) Section 103 (a) of the Housing Act of 1949 is amended by striking out the second sentence and inserting in lieu thereof the following: "The aggregate of such capital grants with respect to all the projects of a local public agency (or of two or more local public agencies in the same municipality) on which contracts for capital grants have been made under this title shall not exceed the total of two-thirds of the aggregate net project costs of such projects undertaken on a two-thirds capital grant basis and three-fourths of the aggregate net project costs of such projects which the Administrator, upon request, may approve on a three-fourths capital grant basis.".

(b) Section 104 of such Act is amended by striking out the second sentence and inserting in lieu thereof the following: "Such local grants-in-aid, together with the local grants-in-aid to be provided in connection with all other projects of the local public agency (or two or more local public agencies in the same municipality) on which contracts for capital grants have theretofore been made, shall be at least equal to the total of one-third of the aggregate net project costs of such projects undertaken on a two-thirds capital grant basis and onefourth of the aggregate net project costs of such projects undertaken on a threefourths capital grant basis.".

(c) Section 110(e) of such Act is amended by striking out "the proviso in the second sentence of" in the third sentence.

CAPITAL GRANT AUTHORIZATION

SEC. 602. Section 103 (b) of the Housing Act of 1949 is amended by striking out the first sentence and inserting in lieu thereof the following: "The Administrator may, with the approval of the President, contract to make grants under this title aggregating not to exceed $4,500,000,000.”.

RELOCATION PAYMENTS

SEC. 603. (a) Section 106 (f) of the Housing Act of 1949 is amended by(1) striking out "that no part" in paragraph (1) and inserting in lieu thereof ", except as hereinafter provided, that no part"; and

(2) striking out the period at the end of the next to the last sentence in paragraph (2) and inserting in lieu thereof ": Provided, That the latter amount may be increased whenever the Administrator determines it to be necessary to compensate any business concern for reasonable and necessary

moving expenses and actual direct losses of property, but any sums paid hereunder in excess of the $3,000 maximum shall be included in gross project cost.".

(3) striking out the last sentence of paragraph (2) and inserting in lieu thereof "Payment to individuals and families of fixed amounts (not to exceed $200 in any case) may be made in lieu of their respective reasonable and necessary moving expenses and actual direct losses of property. All payments under this subsection shall be subject to such rules, regulations, and limitations as may be prescribed by the Administrator.". (b) Section 110 (e) of such Act is amended by—

(1) striking out at the end of clause (i) “and”;

(2) adding "and" at the end of clause (ii); and

(3) adding after clause (ii) “(iii) relocation payments, if made pur suant to the second proviso in paragraph (2) of section 106 (f) hereof.”.

TRANSIENT HOUSING

SEC. 604. Section 106 (g) of the Housing Act of 1949 is repealed.

RESALE OF PROPERTY IN URBAN RENEWAL AREAS FOR HOUSING FOR MODERATE INCOME FAMILIES

SEC. 605. (a) Section 107 of the Housing Act of 1949 is amended by

(1) changing the title thereof to read "PROPERTY TO BE USED FOR PUBLIC HOUSING OR HOUSING FOR MODERATE INCOME FAMILIES";

(2) inserting “(a)" before the first sentence; and

(3) adding the following new subsection:

"(b) Upon approval of the Administrator and subject to such conditions as he may determine to be in the public interest, any real property held as part of an urban renewal project may be made available to a limited dividend corporation, nonprofit corporation or association, cooperative, or public body or agency for purchase at fair value for use by such purchaser in the provision of new or rehabilitated rental or cooperative housing for occupancy by families of moderate income.".

(b) Clause (4) of the second sentence of section 110 (c) of the Housing Act of 1949 is amended by inserting the following before the semicolon at the end thereof: "or as provided in section 107".

REHABILITATION

SEC. 606. (a) The second sentence of section 110 (c) of the Housing Act of 1949 is amended by

(1) striking out "and" after paragraph (5);

(2) striking out the period at the end of paragraph (6) and inserting in lieu thereof “; and "; and

(3) adding after paragraph (6) a new paragraph as follows:

"(7) acquisition and repair or rehabilitation for guidance purposes and resale by the local public agency of dwelling units which are located in the urban renewal area and which, under the urban renewal plan, are to be repaired or rehabilitated.".

(b) The third sentence of section 110 (c) of such Act is amended by inserting after "include" the following: "(except as provided in paragraph (7) above)".

INCREASE IN NONRESIDENTIAL EXCEPTION

SEC. 607. The fifth sentence of section 110 (c) of the Housing Act of 1949 is amended by

(a) striking out "Housing Act of 1959" and inserting in lieu thereof "Housing Act of 1961"; and

(b) striking out "20 per centum" and inserting in lieu thereof "30 per centum".

URBAN PLANNING ASSISTANCE

SEC. 608. Section 701 of the Housing Act of 1954 is amendeded by(a) striking out "50 per centum" in the first sentence of subsection (b) and inserting in lieu thereof "two-thirds";

(b) striking out $20,000,000" in the last sentence of subsection (b) and inserting in lieu thereof "$100,000,000";

(c) inserting after "public facilities" in clause (1) of subsection (d) ", including transportation facilities"; and

(d) adding the following new subsection:

"(f) The consent of the Congress is hereby given to any two or more States to enter into agreements or compacts, not in conflict with any law of the United States, for cooperative efforts and mutual assistance in the comprehensive planning for the physical growth and development of inter-State metropolitan or other urban areas, and to establish such agencies, joint or otherwise, as they may deem desirable for making effective such agreements and compacts.".

TITLE VII-COMMUNITY FACILITIES

AUTHORIZATION FOR PUBLIC FACILITY LOANS

SEC. 701. Section 203 (a) of the Housing Amendments of 1955 is amended by striking out $150,000,000” and inserting in lieu thereof “$200,000,000”.

ADVANCING FOR PUBLIC WORKS PLANNING

SEC. 702. Section 702 of the Housing Act of 1954 is amended by

(a) striking out in subsection (a) "10" and inserting in lieu thereof "12"; and

(b) amending the first sentence of subsection (b) to read as follows: "No advance shall be made hereunder with respect to any individual project, including a regional or metropolitan or other area-wide project, unless it is planned to be constructed and there is a reasonable prospect that the project will be constructed within or over a reasonable period of time considering the nature of the project, unless it conforms to an overall State, local or regional plan approved by a competent State, local, or regional authority, and unless the public agency formally contracts with the Federal Government to complete the plan preparation promptly and to repay such advance or part thereof when due.".

TITLE VIII-FARM HOUSING

SEC. 801. (a) Section 502 (b) of the Housing Act of 1949 is amended by striking out "and such additional security" from item (1) and inserting in lieu thereof the words "or such other security".

(b) Sections 511, 512, and 513 of such Act are each amended by striking out "1961" and inserting in lieu thereof "1966".

(c) This section shall take effect as of July 1, 1961.

TITLE IX-MISCELLANEOUS

FHA SECTION 207 RENTAL HOUSING ELIGIBLE MORTGAGORS

SEC. 901. Section 207 of the National Housing Act is amended by

(a) amending the first paragraph of subsection (b) (2) to read as follows:

"(2) any other mortgagor approved by the Commissioner, which until the termination of all obligations of the Commissioner under the insurance and during such further period of time as the Commissioner shall be the owner, holder, or reinsurer of the mortgage, is regulated or restricted by the Commissioner as to rents or sales, charges, capital structure, rate of return, and methods of operation to such extent and in such manner as to provide reasonable rentals to tenants and a reasonable return on the investment. The Commissioner may make such contracts with and acquire for not to exceed $100 such stock or interest in the mortgagor as he may deem necessary to render effective the regulations or restrictions. The stock or interest acquired by the Commissioner shall be paid for out of the Housing Fund, and shall be redeemed by the mortgagor at par upon the termination of all obligations of the Commissioner under the insurance."; and

(b) striking out in subsection (c) (3) "attributable to dwelling use" and inserting in lieu thereof "attributable to dwelling use (excluding exterior land improvements as defined by the Commissioner)".

MINOR AND CONFORMING

SEC. 902. Section 203 (b) (3) of the National Housing Act is amended by striking out "insurance of the mortgage" and inserting in lieu thereof "beginning of amortization of the mortgage”.

SEC. 903. The second sentence of section 204 (d) is amended by striking out "mortgagee after default," and inserting in lieu thereof "mortgagee after default, except that debentures with respect to loans or mortgages insured or initially endorsed for insurance on or after March 29, 1961 and issued pursuant to the provisions of section 220(f) (1), section 221(g) (3), and section 233 may be dated as of the date they are issued,".

SEC. 904. The last sentence of section 204(g) of the National Housing Act is amended to read as follows: "The power to convey and to execute in the name of the Commissioner deeds of conveyance, deeds of release, assignments and satisfactions of mortgages, and any other written instrument relating to real or personal property or any interest therein heretofore or hereafter acquired by the Commissioner pursuant to the provisions of this Act, may be exercised by the Commissioner or by any Assistant Commissioner appointed by him, without the execution of any express delegation of power or power of attorney: Provided, That nothing in this subsection shall be construed to prevent the Commissioner from delegating such power by order or by power of attorney, in his discretion, to any officer, agent, or employee he may appoint: And provided further, That a conveyance or transfer of title to real or personal property or an interest therein to the Federal Housing Commissioner, his successors and assigns, witout identifying the Commissioner therein, shall be deemed a proper conveyance or transfer to the same extent and of like effect as if the Commissioner were personally named in such conveyance or transfer.".

SEC. 905. Section 209 of the National Housing Act is amended by striking out in the second sentence "shall be charged as a general expense of the Fund, the Housing Fund, and the Defense Housing Insurance Fund in such proportion as the Commissioner shall determine" and inserting in lieu thereof "shall be charged as a general expense of such Insurance Fund or Funds as the Commissioner shall determine".

SEC. 906. Section 212 of the National Housing Act is amended by

(a) striking out in the second sentence of subsection (a) "any mortage under section 220" and inserting in lieu thereof "any loan or mortgage under section 220 or section 233"; and

(b) striking out in the third sentence of subsection (a) "in subsection (d) (4)" and inserting in lieu thereof "in subsection (d) (3) in the case of a cooperative or a limited profit mortgagor, and in subsection (d) (4)”. SEC. 907. Section 213 of the National Housing Act is amended by

(a) striking out "eight or more family units" in subsection (d) and inserting in lieu thereof "five or more family units"; and

(b) inserting in paragraph (2) of subsection (b) after the words "as may be attributable to dwelling use" the following "(excluding exterior land improvements as defined by the Commissioner)"; and

(c) striking out in subsection (h) "such mortgagor shall not thereafter be eligible by reason of such paragraph (3) for insurance of any additional mortgage loans pursuant to this section" and inserting in lieu thereof the following: "the Commissioner is authorized to refuse, for such period of time as he shall deem appropriate under the circumstances, to insure under this section any additional investor-sponsor type mortgage loans made to such mortgagor or to any other investor-sponsor mortgagor where, in the determination of the Commissioner, any of its stockholders were identified with such mortgagor".

SEC. 908. Section 219 of the National Housing Act is amended to read as follows: "Notwithstanding limitations contained in any other sections of this Act as to the use of moneys credited to the title I insurance account, the title I housing insurance fund, the section 203 home improvement account, the housing insurance fund, the war housing insurance fund, the housing investment insurance fund, the armed services housing mortgage insurance fund, the defense housing insurance fund, the section 220 housing insurance fund, the section 220 home improvement account, the section 221 housing insurance fund, the experimental housing insurance fund, the apartment unit insurance fund, or the servicemen's mortgage insurance fund, the Commissioner is hereby authorized to transfer funds from any one or more of such insurance funds or accounts to any other such fund or account in such amounts and at such times as the Commis