Interest-free loans for public works planning

7. In 1954 Congress enacted legislation, sometimes called the section 702 program, under which Federal interest-free loans may be made to municipalities and other local public bodies to finance the plans, blueprints, and specifications of public works. The loans are repayable when construction of the specific project is started.

Prior to your receipt of this questionnaire, were you aware of the availability of this Federal program? Yes. No.

Do you believe your community may make use of this interest-free loan program for the planning of public works? Yes.

If no, why not-check appropriate box below:

No.

Able to finance public works planning in current operating budget. Legally cannot borrow for planning of public works prior to bond election.

Other.

If 100 percent Federal grants were available for planning public works (as noted above) would your community make use of the program? Yes. No. Technical assistance on bond financing

8. Could you use technical assistance regarding issuance of bonds and related financial problems?

Yes.

If yes, in what connection:

00000

No.

Preparation of economic and financial data to support bond sale.

Explanation of terms and conditions governing loan repayment, establishment of reserves, issuance of additional bonds.

Comparative advantages of revenue bond or GO bonds, term or serial bonds, factors affecting annual debt service cost.

Techniques and procedures in marketing of bonds.

Capital budgets, programing and scheduling of public works.
Financial reporting to facilitate bond sales.

Other.

Signed:

Title:

Date:

APPENDIX B-CITIES EXPRESSING AN INTEREST IN THE PUBLIC FACILITIES
LOAN PROGRAM

APPENDIX B-CITIES EXPRESSING AN INTEREST IN THE PUBLIC FACILITIES LOAN PROGRAM-Continued

APPENDIX B-CITIES EXPRESSING AN INTEREST IN THE PUBLIC FACILITIES

APPENDIX B-CITIES EXPRESSING AN INTEREST IN THE PUBLIC FACILITIES LOAN PROGRAM-Continned

DEAR MR. CHAIRMAN: In connection with the current housing proposals being considered by your subcommittee, may I urge you to give favorable attention to an amendment which would allow the new financing mechanisms to apply to existing housing in urban renewal areas.

I am concerned with the Longwood project in my district and the difficulties it has encountered because its monthly charges are somewhat higher than the market can support. Rather than have these worthwhile developments (developments in which the Cleveland Development Foundation has had a civic and financial interest) go into default and be returned to the Federal Government, I feel they should be refinanced in such fashion that they can be kept in private hands and given the financial mechanisms which can make them work.

You will remember that a group of 22 savings and loan companies financed one section of Longwood through a nonprofit trust. The Cleveland Development Foundation is represented on the board of managers. One of the other members of the board of managers represents the developers of the project.

You will be pleased to know that the enclosed amendment has been submitted to Mr. B. T. Fitzpatrick, former General Counsel of the Housing and Home Finance Agency, Washington, D.C. I understand that Mr. Fitzpatrick had recommended the provisions of the enclosed amendment. It is also my understanding that Mr. Chat Paterson, of my city, has discussed this matter very extensively with Mr. Neal Hardy and Mr. Milt Semer. It is my further understanding that they have no objection to the amendment.

If you desire special testimony on this amendment, please let me know, so that I can make proper arrangements therefor.

Sincerely yours,

CHARLES A. VANIK,
Member of Congress.

H.R. 6028-REFINANCING

On page 57, strike out lines 1 and 2 and insert in lieu thereof the following: "SEC. 921. Section 223 of the National Housing Act is amended by

“(a) striking out "213, or 222' each time it appears in subsection (a) and inserting in lieu thereof '213, 220, 221, 222, 231, 232, or 233'; "(b) striking out in subsection (a) (7) 'section 903 or section 908 of title IX' and inserting in lieu thereof 'section 220, section 221, section 903, or section 908';

"(c) striking out in subsection (a) (7) ‘insured under section 608 or 908'; "(d) striking out in subsection (a) (7) : Provided further, That a mortgage of the character' and inserting in lieu thereof a period and the following:

"(b) Notwithstanding any of the provisions of this title and without regard to limitations upon eligibility contained in section 221, the Commissioner may in his discretion insure under section 221(d) (3) any mortgage executed by a mortgagor of the character described therein where such mortgage is given to refinance a mortgage covering an existing property or project (other than a one- to four-family structure) located in an urban renewal area, if the Commissioner finds that such insurance will facilitate the occupancy of dwelling units in the property or project by families of low or moderate income or families displaced from an urban renewal area or displaced as a result of governmental action.

"A mortgage of the character';

"(e) redesignating subsection ‘(b)' as subsection '(c)'; and
“(f) adding the following subsection:"

CONGRESS OF THE UNITED STATES,

HOUSE OF REPRESENTATIVES,
Washington, D.C., May 12, 1961.

Hon. ALBERT RAINS,

Member of Congress, House of Representatives,
Washington, D.C.

DEAR AL: I respectfully request that you submit my bill H.R. 3737 with the main housing bill, H.R. 6028.

My bill is to provide for the approval of the 1956 payment in lieu of taxes made to the city of Holyoke, Mass., under the U.S. Housing Act of 1937. With my personal thanks, I am

(Whereupon, at 3:25 p.m., the subcommittee adjourned.)

О