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1 Territory of the Pacific Islands, and Indian tribes, bands, 2 groups, and Nations, including Alaska Indians, Aleuts, and 3 Eskimos, of the United States.

4 "(8) The terms low-income housing project' and 'proj5 ect' mean (A) any low-income housing developed, acquired, 6 or assisted by a public housing agency under this Act, and 7 (B) the improvement of any such housing.

8

"(9) The term 'Secretary' means the Secretary of Hous

9 ing and Urban Development.

10

11

"LOANS FOR LOW-INCOME HOUSING PROJECTS

"SEC. 4. (a) The Secretary may make loans or com12 mitments to make loans to public housing agencies to help 13 finance or refinance the development, acquisition, or opera14 tion of low-income housing projects by such agencies. Any 15 contract for such loans and any amendment to a contract 16 for such loans shall provide that such loans shall bear inter17 est at a rate specified by the Secretary which shall not be 18 less than a rate determined by the Secretary of the Treasury 19 taking into consideration the current average market yield 20 on outstanding marketable obligations of the United States 21 with remaining periods to maturity comparable to the aver22 age maturities of such loans, plus one-eighth of 1 per centum. 23 Such loans shall be secured in such manner and shall be 24 repaid within such period not exceeding forty years, or not 25 exceeding forty years from the date of the bonds evidencing

45

1 the loan, as the Secretary may determine. The Secretary 2 may require loans or commitments to make loans under 3 this section to be pledged as security for obligations issued 4 by a public housing agency in connection with a low-income 5 housing project.

6

"(b) The Secretary may issue and have outstanding at 7 any one time notes and other obligations for purchase by the 8 Secretary of the Treasury in an amount which shall not, 9 unless authorized by the President, exceed $1,500,000,000. 10 For the purpose of determining obligations incurred to make 11 loans pursuant to this Act against any limitation otherwise 12 applicable with respect to such loans, the Secretary shall 13 estimate the maximum amount to be loaned at any one time 14 pursuant to loan agreements then outstanding with public 15 housing agencies. Such notes or other obligations shall be in 16 such forms and denominations and shall be subject to such 17 terms and conditions as may be prescribed by the Secretary 18 with the approval of the Secretary of the Treasury. The 19 notes or other obligations issued under this subsection shall 20 have such maturities and bear such rate or rates of interest as shall be determined by the Secretary of the Treasury. The 22 Secretary of the Treasury is authorized and directed to pur23 chase any notes or other obligations of the Secretary issued 24 hereunder and for such purpose is authorized to use as a pub25 lic debt transaction the proceeds from the sale of any securi

21

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1 ties issued under the Second Liberty Bond Act, as amended, 2 and the purposes for which securities may be issued under 3 such Act, as amended, are extended to include any purchases 4 of such obligations. The Secretary of the Treasury may at 5 any time sell any of the notes or other obligations acquired by 6 him under this section. All redemptions, purchases, and sales 7 by the Secretary of the Treasury of such notes or other obliga8 tions shall be treated as public debt transactions of the 9 United States.

10 "ANNUAL CONTRIBUTIONS FOR LOW-INCOME HOUSING

11

12

PROJECTS

"SEC. 5. (a) The Secretary may make annual contribu13 tions to public housing agencies to assist in achieving and 14 maintaining the low-income character of their projects. The 15 Secretary shall embody the provisions for such annual con16 tributions in a contract guaranteeing their payment. The 17 contribution payable annually under this section shall in no 18 case exceed a sum equal to the annual amount of principal 19 and interest payable on obligations issued by the public 20 housing agency to finance the development or acquisition 21 cost of the low-income project involved. The amount of an22 nual contributions which would be established for a newly 23 constructed project by a public housing agency designed to 24 accommodate a number of families of a given size and kind 25 may be established under this section for a project by such

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1 public housing agency which would provide housing for the 2 comparable number, sizes, and kinds of families through the 3 acquisition, acquisition and rehabilitation, or use under lease 4 of structures which are suitable for low-income housing use 5 and obtained in the local market. Annual contributions pay6 able under this section shall be pledged, if the Secretary so 7 requires, as security for obligations issued by a public hous8 ing agency to assist the development or acquisition of the 9 project to which annual contributions relate and shall be 10 paid over a period not to exceed forty years.

11

"(b) The Secretary may prescribe regulations fixing 12 the maximum contributions available under different circum13 stances, giving consideration to cost, location, size, rent14 paying ability of prospective tenants, or other factors bear15 ing upon the amounts and periods of assistance needed to 16 achieve and maintain low rentals. Such regulations may pro17 vide for rates of contribution based upon development, ac18 quisition or operation costs, number of dwelling units, number of persons housed, interest charges, or other appropriate factors.

19

220

21

223

24

"(c) The Secretary is authorized to enter into contracts

for annual contributions under this section aggregating not

more than $1,574,000,000 per annum, which limit shall be

increased by $140,000,000 on July 1, 1973. The Secre

25 tary shall enter into only such new contracts for preliminary

48

1 loans as are consistent with the number of dwelling units for 2 which contracts for annual contributions may be entered into. 3 The faith of the United States is solemnly pledged to the pay4 ment of all annual contributions contracted for pursuant to this 5 section, and there is hereby authorized to be appropriated in 6 each fiscal year, out of any money in the Treasury not other7 wise appropriated, the amounts necessary to provide for such 8 payments. All payments of annual contributions pursuant to 9 this section shall be made out of any funds available for pur10 poses of this Act when such payments are due, except that 11 funds obtained through the issuance of obligations pursuant 12 to section 4 (b) (including repayments or other realizations 13 of the principal of loans made out of such funds) shall not 14 be available for the payment of such annual contributions. 15 "(d) Any contract for loans or annual contributions, or 16 both, entered into by the Secretary with a public housing 17 agency, may cover one or more than one low-income hous18 ing project owned by said public housing agency; in the 19 event such contract covers two or more projects, such proj20 ects may, for any of the purposes of this Act and of such 21 contract (including, but not limited to, the determination of 22 the amount of the loan, annual contributions, or payments in 23 lieu of taxes, specified in such contract), be treated collec24 tively as one project.

25

"(e) In recognition that there should be local determi