64 1 ing purchased (or in the process of purchase) by the public 2 agency for resale to tenants as provided in subsection (f). 3 "(f) To the extent authorized in contracts entered into 4 by the Secretary with a public housing agency (and on such 5 terms and conditions as the Secretary may prescribe), such 6 agency may purchase any structure containing one or more 7 dwelling units leased to provide low-income housing in 8 private accommodations under this section for the purpose 9 of reselling the structure to the tenant or tenants of the 10 structure or to a group of such tenants occupying units ag11 gregating in value at least 80 per centum of the structure's 12 total value. 13 "ANNUAL CONTRIBUTIONS FOR OPERATION OF LOW-INCOME 14 15 HOUSING PROJECTS "SEC. 9. (a) The Secretary may make annual con16 tributions to public housing agencies for the operation of 17 low-income housing projects. The contribution payable under 18 this section shall not exceed the amounts which the Secretary 19 determines are required (1) to assure the low-income char20 acter of the projects involved and (2) to achieve and main21 tain adequate operating services. The Secretary may embody 22 the provisions for such annual contributions in a contract 23 guaranteeing their payment and containing such terms and 24 conditions designed to assure the economic and social via25 bility of the project as he determines are necessary to carry 65 1 out the purposes of this Act without undue reliance on the 2 financial assistance provided under this section. 3 "(b) The aggregate rentals required to be paid in any 4 year by families residing in the dwelling units administered 5 by a public housing agency receiving annual contributions 6 under this section shall not be less than an amount equal to 7 one-fifth of the sum of the incomes of all such families. 8 "(c) No annual contributions shall be paid under this 9 section with respect to any low-income housing project un10 less the Secretary determines that sound management prac11 tices will be followed in the operation of the project, 12 including- "(1) the establishment of tenant eligibility criteria which, within a reasonable period of time, will assure that the project will include families with a broad range of incomes and will avoid concentrations of very low-income and socially deprived problem families; "(2) the establishment of satisfactory procedures to assure the prompt payment and collection of rents and for the prompt processing of evictions in the case of nonpayment of rent; "(3) the establishment of effective tenant-management relationships which assure that satisfactory stand ards of tenant security and project maintenance are for mulated and that the public housing agency (together 66 1 2 3 4 5 6 7 with tenant councils where they exist) enforces those standards fully and effectively; and "(4) the development by local housing authority managements of viable homeownership opportunity programs for low-income families capable of assuming the responsibilities of homeownership. "(d) From the amounts authorized under section 5 (c) 8 of this Act, the Secretary is authorized to enter into con9 tracts for annual contributions under this section aggregating 10 not more than $300,000,000 per annum. 12 "SEC. 10. (a) In the performance of, and with respect 13 to, the functions, powers, and duties vested in him by this 14 Act, the Secretary, notwithstanding the provisions of any 15 other law, shall— "(1) prepare annually and submit a budget program as provided for wholly owned Government corporations by the Government Corporation Control Act, as amended; and "(2) maintain an integral set of accounts which shall be audited annually by the General Accounting Office in accordance with the principles and procedures applicable to commercial transactions as provided by the Government Corporation Control Act, as amended, and no other audit shall be required. 24-038 74 - pt. 1 - 6 1 67 "(b) All receipts and assets of the Secretary under this 2 Act shall be available for the purposes of this Act until 3 expended. 4 "(c) The Federal Reserve banks are authorized and 5 directed to act as depositories, custodians, and fiscal agents 6 for the Secretary in the general exercise of his powers under 7 this Act, and the Secretary may reimburse any such bank 8 for its services in such manner as may be agreed upon. "FINANCING LOW-INCOME HOUSING PROJECTS 9 10 "SEC. 11. (a) Obligations issued by a public housing 11 agency in connection with low-income housing projects which 12 (1) are secured (A) by a pledge of a loan under any agree13 ment between such public housing agency and the Secretary 14 or (B) by a pledge of annual contributions under an annual 15 contributions contract between such public housing agency 16 and the Secretary, or (C) by a pledge of both annual contri17 butions under an annual contributions contract and a loan 18 under an agreement between such public housing agency 19 and the Secretary, and (2) bear, or are accompanied by, a 20 certificate of the Secretary that such obligations are SO 21 secured, shall be incontestable in the hands of a bearer, and 22 the full faith and credit of the United States is pledged to 23 the payment of all amounts agreed to be paid by the Secre24 tary as security for such obligations. "(b) Obligations, including interest thereon, issued by 68 1 public housing agencies in connection with low-income hous 2 3 ing projects shall be exempt from all taxation now or here after imposed by the United States whether paid by such 4 agencies or by the Secretary. The income derived by such 5 agencies from such projects shall be exempt from all taxation 6 now or hereafter imposed by the United States. 7 8 "LABOR STANDARDS "SEC. 12. Any contract for loans, annual contributions, 9 sale, or lease pursuant to this Act shall contain a provision. 10 requiring that not less than the wages prevailing in the local11 ity, as determined or adopted (subsequent to a determination 12 under applicable State or local law) by the Secretary, shall 13 be paid to all architects, technical engineers, draftsmen, and 14 technicians employed in the development and to all main15 tenance laborers and mechanics employed in the operation of 16 the low-income housing project involved; and shall also 17 contain a provision that not less than the wages prevailing 18 in the locality, as predetermined by the Secretary of Labor 19 pursuant to the Davis-Bacon Act (49 Stat. 1011), shall be 20 paid to all laborers and mechanics employed in the develop21 ment of the project involved (including a project for the 22 use of privately built housing in any case, other than under 23 the authority of section 8 of this Act, where the public 24 housing agency and the builder or sponsor enter into an 25 agreement for such use before construction or rehabilitation |