sioner may determine, taking into consideration the requirements of such funds or accounts, separately and jointly to carry out effectively the insurance programs for which such funds or acounts were established.".

SEC. 909. Section 220 (f) of the National Housing Act is amended by

(a) striking out "or" at the end of paragraph (1),

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

(c) adding the following:

"(3) as to mortgages meeting the requirements of this section that are insured or initially endorsed for insurance on or after March 29, 1961, notwithstanding the provisions of paragraphs (1) and (2) of this subsection, the Commissioner, in his discretion, may in accordance with such regulations as he may prescribe, acquire a mortgage loan that is in default and the security therefor upon payment to the mortgagee in cash or in debentures of a total amount equal to the unpaid principal balance of the loan plus any accrued interest and any advances approved by the Commissioner and made previously by the mortgagee under the provisions of the mortgage. After the acquisition of the mortgage by the Commissioner the mortgagee shall have no further rights, liabilities, or obligations with respect to the loan or the security for the loan. The provisions of sections 204 and 207 relating to the rights, liabilities and obligations of a mortgagee shall apply with respect to the Commissioner when he has acquired an insured mortgage under this subsection, in accordance with and subject to regulations (modifying such provisions to the extent necessary to render their application for such purposes appropriate and effective) which shall be prescribed by the Commissioner.".

SEC. 910. The first sentence of section 224 of the National Housing Act is amended to read as follows: "Notwithstanding any other provisions of this Act, debentures issued under any section of this Act with respect to a loan or mortgage accepted for insurance on or after thirty days following the effective date of the Housing Act of 1954 (except debentures issued pursuant to paragraph (4) of section 221(g)) shall bear interest at the rate in effect on the date the commitment to insure the loan or mortgage was issued, or the date the loan or mortgage was endorsed for insurance, or (when there are two or more insurance endorsements) the date the loan or mortgage was initially endorsed for insurance, whichever rate is the highest, except that debentures issued pursuant to section 220(f), section 220(h) (6), section 221(g) (3), or section 233 may, at the discretion of the Commissioner, bear interest at the rate in effect on the date they are issued.".

SEC. 911. Section 226 of the National Housing Act is amended by striking out "222, or" and inserting in lieu thereof “222, 233, 234, or".

SEC. 912. Section 229 of the National Housing Act is amended to read as follows:

"Notwithstanding any other provision of this Act and with respect to any loan or mortgage heretofore or hereafter insured under this Act, except under section 2, the Commissioner is authorized to terminate any insurance contract upon request by the borrower or mortgagor and the financial institution or mortgagee and upon payment of such termination charge as the Commissioner determines to be equitable, taking into consideration the necessity of protecting the various insurance funds and accounts. Upon such termination borrowers and mortgagors and financial institutions and mortgagees shall be entitled to the rights, if any, to which they would be entitled under this Act if the insurance contract were terminated by payment in full of the insured loan or mortgage.". SEC. 913. Section 231 (c) (2) of the National Housing Act is amended by striking out "attributable to dwelling use" and inserting in lieu thereof "attributable to dwelling use (excluding exterior land improvements as defined by the Commissioner)".

SEC. 914. Section 302 (b) of the National Housing Act is amended by striking out in clause (3) "insured under section 220 or 803," and inserting in lieu thereof "insured under section 220 or 803, or insured under section 213 and covering property located in an urban renewal area,".

SEC. 915. Clause (4) of the second sentence of section 110 (c) of the Housing Act of 1949 is amended by striking out "initial".

SEC. 916. Section 112 of the Housing Act of 1949 is amended by striking out the first colon and everything that follows it and inserting in lieu thereof a period and the following: "The aggregate expenditures made by such institution (directly or through a private redevelopment corporation or a municipal or other

public corporation) for the acquisition within, adjacent to, or in the immediate vicinity of the project area, of land, buildings and structures to be redeveloped or rehabilitated by such institution for educational uses in accordance with the urban renewal plan (or with a development plan proposed by such institution or corporation, found acceptable by the Administrator after considering the standards specified in section 110(b), and approved under State or local law after public hearing), and for the demolition of such buildings and structures if, pursuant to such urban renewal or development plan, the land is to be cleared and redeveloped, and for the relocation of occupants from buildings and structures to be demolished or rehabilitated, as certified by such institution to the local public agency and approved by the Administrator, shall be a local grantin-aid in connection with such urban renewal project: Provided, That no such expenditures shall be deemed ineligible as a local grant-in-aid in connection with any such project if made not more than five years prior to the authorization by the Administrator of a contract for a loan or capital grant for such urban renewal project: Provided further, That no such expenditure shall be eligible as a grant-in-aid in any case where the property involved is acquired by such educational institution from a local public agency which, in connection with its acquisition or disposition of such property, has received, or contracted to receive, a capital grant pursuant to this title: And provided further, That the aggregate expenditures made by any public authority, established by any State, for acquisition, demolition, and relocation in connection with land, buildings and structures acquired by such public authority and leased to an educational institution for educational uses shall be deemed a local grant-in-aid to the same extent as if such expenditures had been made directly by such educational institution. The term 'educational institution' as used herein shall mean any educational institution of higher learning, including any public educational institution or any private educational institution, no part of the net earnings of which shall inure to the benefit of any private shareholder or individual.".

SEC. 917. Section 802(a) of the Housing Act of 1959 is amended by striking out "five" in the first sentence and inserting in lieu thereof "six".

SEO. 918. Section 502 of the Housing Act of 1948 is amended by—

(a) striking out in subsection (c) (3) the first proviso, the colon thereafter, and the words "And provided further," and inserting in lieu thereof "Provided,"; and

(b) adding the following subsection:

"(d) The Housing and Home Finance Administrator, the Federal Housing Commissioner, and the Public Housing Commissioner, respectively, may utilize funds made available to them for salaries and expenses for payment in advance for dues or fees for library memberships in organizations (or for membership of the individual librarians of the respective agencies in organizations which will not accept library membership) whose publications are available to members only, or to members at a price lower than to the general public, and for payment in advance for publications available only upon that basis or available at a reduced price on prepublication order.".

AMENDMENT OF THE FEDERAL RESERVE ACT

SEC. 919. Section 24 of the Federal Reserve Act is amended by inserting the following sentence before the last sentence in that section: "Notwithstanding the limitations and restrictions in this section any national banking association may make home improvement loans which are insured under the provisions of sections 203 (k) and 220(h) of the National Housing Act.".

AMENDMENT OF THE HOME OWNERS' LOAN ACT OF 1933

SEC. 920. Section 5(c) of the Home Owners' Loan Act of 1933 is amended by striking out "in loans insured under title I of the National Housing Act, as amended" in the first sentence of the second paragraph and inserting in lieu thereof “in loans insured under title I of the National Housing Act, in home improvement loans insured under title II of the National Housing Act,”.

SEC. 921. Section 223 of the National Housing Act is amended by adding the following subsection:

"(c) With respect to any mortgage, other than a mortgage covering a one- to four-family structure, heretofore or hereafter insured by the Commissioner, and notwithstanding any other provision of this Act, when the taxes, interest on the mortgage debt, mortgage insurance premiums, hazard insurance premiums, and

the expense of maintenance and operation of the project covered by such mortgage during the first two years following final endorsement exceed the project income, the Commissioner may, in his discretion and upon such terms and conditions as he may prescribe, permit the excess of the foregoing expenses over the project income to be added to the amount of such mortgage, and extend the coverage of the mortgage insurance thereto, and such additional advance shall be deemed to be part of the original face amount of the mortgage.".

[H.R. 5300, 87th Cong., 1st sess.]

A BILL To amend title IV of the Housing Act of 1950 so as to increase the amount of the authorization for loans under the college housing program, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 401 (d) of the Housing Act of 1950 is amended to read as follows:

"(d) To obtain funds for loans under subsection (a) of this section, the Administrator may issue and have outstanding at any one time notes and obligations for purchase by the Secretary of the Treasury in an amount not to exceed $1,775,000,000, which amount shall be increased by $250,000,000 on July 1 of each of the years 1961 through 1965: Provided, That the amount outstanding for other educational facilities, as defined herein, shall not exceed $175,000,000, which limit shall be increased by $25,000,000 on July 1 of each of the years 1961 through 1965: Provided further, That the amount outstanding for hospitals, referred to in clause (2) of section 404 (b), shall not exceed $100,000,000, which limit shall be increased by $25,000,000 on July 1 of each of the years 1961 through 1965."

SEC. 2. Section 403 of the Housing Act of 1950 is amended by striking out "10 per centum" and inserting in lieu thereof "121⁄2 per centum".

[H.R. 6423, 87th Cong., 1st sess.]

A BILL To authorize the Housing and Home Finance Administrator to assist States and local public bodies to acquire land in urban areas for preservation as open-space land or for planned future public or private development, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Open Space and Urban Development Act of 1961".

FINDINGS AND PURPOSE

SEC. 2. (a) The Congress finds that a combination of economic, social, governmental, and technological forces have caused an unprecedentedly rapid and wasteful expansion and sprawl of the Nation's urban areas, which has created critical problems of service and finance for all levels of government and which, combined with a rapid population growth in such areas, threaten severe problems of urban and suburban living, including the loss of valuable open-space land in and around such areas, for the preponderant majority of the Nation's present and future population.

(b) It is the purpose of this Act to help curb urban sprawl and prevent the spread of urban blight and deterioration; to encourage more economic and desirable urban development; and to help provide necessary recreational, conservation, and scenic areas and land needed for other public purposes by assisting States and local public bodies, acting in accord with comprehensive area plans, to acquire undeveloped or predominantly undeveloped land in urban areas for preservation as open-space land or for planned future public or private development.

TECHNICAL ASSISTANCE, STUDIES, AND PUBLICATION OF INFORMATION

SEC. 3. In carrying out the purpose of this Act the Housing and Home Finance Administrator is authorized to provide technical assistance to State and local public bodies and to undertake such studies and publish such information, either directly or by contract, as he shall determine to be desirable. There are hereby authorized to be appropriated, out of any moneys in the Treasury not otherwise

appropriated, such amounts as may be necessary to provide for such assistance, studies, and publication. Nothing contained in this section shall limit any authority of the Administrator under any other provision of law.

TITLE I-PERMANENT OPEN LAND

FEDERAL GRANTS

SEC. 101. (a) In order to encourage and assist in the timely acquisition of land to be used as permanent open-space land (as defined in section 104 (a)), the Housing and Home Finance Administrator (hereinafter referred to as the "Administrator") is authorized to make grants to State and local public bodies acceptable to the Administrator as capable of carrying out the provisions of this title to help finance the acquisition of title to, or other permanent interests in, such land. The amount of any such grant shall not exceed 20 per centum of the total cost, as approved by the Administrator, of acquiring such interests: Provided, That this limitation may be increased to not to exceed 30 per centum in the case of a grant extended to a public body which (1) exercises responsibilities consistent with the purposes of this title for an urban area as a whole or (2) exercises or participates in the exercise of such responsibilities for all or a substantial portion of an urban area pursuant to an interstate or other intergovernmental compact or agreement.

(b) The Administrator may make grants under this title aggregating not to exceed $100,000,000. There are hereby authorized to be appropriated, out of any moneys in the Treasury not otherwise appropriated, the amounts necessary to provide for such payments as well as to carry out all other purposes of this title.

(c) No grants under this title shall be used to defray development costs or ordinary State or local governmental expenses.

(d) The Administrator may set such further terms and conditions for asssitance under this title as he determines to be desirable.

(e) The Administrator shall consult with the Secretary of the Interior on the general policies to be followed in reviewing applications for grants. To assist the Administrator in such review, the Secretary of the Interior shall furnish him appropriate information on the status of recreational planning for the areas to be served by the open-space land acquired with the grants. The Administrator shall provide current information to the Secretary from time to time on significant program developments.

PLANNING REQUIREMENTS

SEC. 102. (a) The Administrator shall make grants for the acquisition of land under this title only if he finds that (1) the proposed use of the land for permanent open space is important to the execution of a comprehensive plan for the urban area meeting criteria he has established for such plans; and (2) a program of comprehensive planning (as defined in section 701(d) of the Housing Act of 1954) is being actively carried on for the urban area.

(b) In extending financial assistance under this title, the Administrator shall take such action as he deems appropriate to assure that local governing bodies are preserving a maximum of open-space land, with a minimum of cost, through the use of existing public land; the use of special tax, zoning, and subdivision provisions; the continuation of appropriate private use of openspace land through acquisition and leaseback; the acquisition of restrictive easements; and other available means.

CONVERSIONS TO OTHER USES

SEC. 103. No open-space land for which a grant has been made under this title shall, without the approval of the Administrator, be converted to uses other than those originally approved by him. The Administrator shall issue no approval for conversion of land from open-space use unless he finds that such conversion is essential to the orderly development and growth of the urban area involved and is in accord with the then applicable comprehensive plan, meeting criteria established by him. The Administrator shall issue such approval only upon such conditions as he deems necessary to assure the substitution of other open-space land of at least equal fair market value and of as nearly as feasible equivalent usefulness and location.

DEFINITIONS

SEC. 104. (a) As used in this title, the term "open-space land" means any undeveloped or predominantly undeveloped land, including agricultural land, in or adjoining an urban area, which has (1) economic and social value as a means of shaping the character, direction, and timing of community development; (2) recreational value; (3) conservation value in protecting natural resources; or (4) historic, scenic, scientific, or esthetic value.

(b) As used in this title, the term "urban area" means any area which is urban in character, including those surrounding areas which, in the judgment of the Administrator, 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. (c) As used in this title, the term "States" means the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, and Guam.

TITLE II-OPEN LAND FOR FUTURE DEVELOPMENT

FEDERAL LOANS

SEC. 201. Title I of the Housing Act of 1949 is amended by adding at the end thereof the following new section:

"OPEN LAND FOR FUTURE DEVELOPMENT

"SEC. 113. (a) To assist public bodies in the acquisition of open land for future private or public development the Administrator may make loans to State and local public bodies in accordance with the provisions of this section. The loans shall be repaid within such period, not to exceed ten years, as the Administrator determines to be in accord with the preliminary development plan referred to in subsection (c) of this section: Provided, That the loan period may be increased to not to exceed fifteen years when the Administrator determines such revision to be necessary to provide for development of the land in accord with the development plan referred to in subsection (d) of this section. The loans shall be in such amounts (not exceeding the acquisition cost of the land), shall bear interest at such rate (not less than the applicable going Federal rate), and shall be subject to such other terms and conditions, as may be prescribed by the Administrator. Obligations, including interest thereon, issued by public bodies to finance the acquisition of open land under this section, shall be exempt from all taxation now or hereafter imposed by the United States.

"(b) Of the funds authorized to be obtained under section 102(e) of this title, not more than $100,000,000 outstanding at any time may be used for the making of loans under this section. The loan funds may be used only for the acquisition cost of the land.

"(c) The Administrator shall make loans for the acquisition of land under ths section only if he finds that (1) the proposed development of the land is important to the execution of a comprehensive plan for the urban area meeting criteria he has established for such plans, (2) a program of comprehensive planning (as defined in section 701 (d) of the Housing Act of 1954) is being actively carried on for the urban area, and (3) a preliminary development plan for the land meets criteria he has established for such plans.

"(d) No development of land whose acquisition has been assisted under this section shall be permitted unless the Administrator determines that such development is consistent with a development plan for the land and with the thenapplicable comprehensive plan for the urban area, which shall both meet criteria established by him. No State or local public body shall sell or otherwise dispose of such land to any private person at less than its fair value for uses in accord with the development plan.

"(e) As used in this section, the term 'open land' means any undeveloped or predominantly undeveloped land, including agricultural land, in or adjoining an urban area, which has economic and social value as a means of shaping the character, direction, and timing of community development.