34

1 in such manner and repaid within such period as may be

2 prescribed by the Secretary.

3 (b) The full faith and credit of the United States is 4 pledged to the payment of all amounts which may be re5 quired to be paid under any guaranty under this section. Any 6 such guaranty made by the Secretary shall be conclusive 7 evidence of the eligibility of the obligations for such guaranty, 8 and the validity of any guaranty so made shall be incon9 testable in the hands of a holder of the guaranteed obligation. 10 Except as provided in subsection (f), obligations, including 11 interest thereon, guaranteed under this section and issued in 12 connection with housing projects to be owned by a State, 13 unit of general local government, or agency thereof, shall be exempt from all taxation now or hereafter imposed by 15 the United States.

14

16 (c) The Secretary may issue obligations to the Secre17 tary of the Treasury in an amount sufficient to enable the 18 Secretary to carry out the functions authorized by this sec19 tion. The obligations issued under this section shall have 20 such maturities and bear such rate or rates of interest as 21 shall be determined by the Secretary of the Treasury. The 22 Secretary of the Treasury is authorized and directed to pur23 chase any obligations so issued, and for that purpose he is 24 authorized to use as a public debt transaction the proceeds 25 from the sale of any securities issued under the Second Liberty

24-038 O-74- pt. 1 - 4

35

1 Bond Act, and the purposes for which securities may be 2 issued under that Act are extended to include purchases of 3 the obligations hereunder.

4 (d) The Secretary is authorized to recover payments 5 made pursuant to his guaranty from the annual allocation of 6 funds available under section 121 for the State or unit of 7 general local governmernt involved insofar as such recovery 8 is feasible.

9 (e) The Secretary may impose such conditions, from 10 time to time, on the implementation of the Housing Assistance 11 Program of a State or unit of general local government as 12 the Secretary determines to be necessary to protect the inter13 ests of the United States.

.

14 (f) Obligations the income from which is not exempt 15 from Federal taxation may be guaranteed under this section. 16 The Secretary is authorized to make grants to any State, 17 unit of general local government, or agency thereof, issuing 18 such obligations, in an amount equal to 30 per centum of 19 the interest paid on such obligations.

20

(g) There are authorized to be appropriated such sums 21 as may be necessary to carry out the purposes of this section.

UTILIZATION OF PRIVATE ENTERPRISE

SEC. 126. The Secretary shall encourage the utilization

24 of private enterprise to the maximum extent feasible in the

25 implementation of a community's Housing Assistance Pro

36

1 gram under this part. Whenever the Secretary determines 2 that the assistance provided by this part is not being utilized 3 to meet housing needs in an area, he may make available 4 in that area the assistance authorized by sections 402 and 5 502 of the Revised National Housing Act.

6

PART C-GENERAL PROVISIONS

7 COMMUNITY DEVELOPMENT AND HOUSING ASSISTANCE

8

FUNDS FOR NEW COMMUNITIES

9 SEC. 131. In the case of new community development 10 programs which meet the eligibility standards of section 712 11 of the Urban Growth and New Community Development 12 Act of 1970, or of title IV of the Housing and Urban De13 velopment Act of 1968, the Secretary shall make allo14 cations of community development and housing assistance 15 funds under this chapter which take into account the assist16 ance required for community development activities which 17 the Secretary determines are necessary or desirable for the 18 new community involved.

20 SEC. 132. All laborers and mechanics employed by con21 tractors or subcontractors in the performance of construc22 tion work financed in whole or in part with grants received 23 under this chapter shall be paid wages at rates not less than 24 those prevailing on similar construction in the locality as 25 determined by the Secretary of Labor in accordance with

37

1 the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a2 5): Provided, That this section shall apply to the con3 struction of residential property only if such residential 4 property is designed for residential use for eight or more 5 families. The Secretary of Labor shall have, with respect 6 to such labor standards, the authority and functions set 7 forth in Reorganization Plan Numbered 14 of 1950 (15 8 F.R. 3176; 64 Stat. 1267) and section 2 of the Act of 9 June 13, 1934, as amended (48 Stat. 948; 40 U.S.C. 10 276 (c)).

11

12

RECORDS, AUDIT, AND REPORTS

SEC. 133. (a) All amounts distributed to recipients un

13 der this chapter shall be properly accounted for as Federal

14 funds in the accounts of such recipients.

15

(b) In order to assure that amounts distributed under 16 this chapter are used in accordance with the provisions of

17 this chapter, each recipient shall

18

19

(1) use such fiscal and accounting procedures as may be necessary to assure (i) proper accounting for

20 amounts received by it and (ii) proper disbursement of

21

222

such amounts;

(2) provide to the Secretary, on reasonable notice,

such access to, and such right to examine, any books,

documents, papers, or records, as he may require;

and

38

1

2

3

(3) make such reports to the Secretary as he may

require.

(c) Insofar as they relate to funds provided under this 4 chapter, the financial transactions of recipients of such funds 5 may be audited by the General Accounting Office under such 6 rules and regulations as may be prescribed by the Comp7 troller General of the United States. The representatives 8 of the General Accounting Office shall have access to all 9 books, accounts, records, reports, files, and other papers, 10 things, or property belonging to or in use by such recipients 11 pertaining to such financial transactions and necessary to 12 facilitate the audit.

13

(d) If the Secretary finds that funds provided under 14 this chapter are not being used by a State or unit of general 15 local government in accordance with the provisions of this 16 chapter, he may terminate, reduce, or limit the availability 17 of payments under this chapter to such State or unit of

19

20

21

22

23

general local government to the extent necessary to correct

or secure recovery for such noncompliance.

CHAPTER II-PUBLIC HOUSING ASSISTANCE

PROGRAM

CONSOLIDATION AND REVISION OF PROGRAM

SEC. 201. The United States Housing Act of 1937 is 24 amended to read as follows: