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(2) above and this amount would be available to the Governors for distribution to any unit of general local government, and subject to regulations of the Secretary for administrative expenses incurred by the State in carrying out this Act. No amount allotted among metropolitan cities and urban counties out of the balance of funds remaining in any fiscal year by virtue of the phase out of hold-harmless (after the 10 per cent of such funds are allotted to the Secretary) would be paid in any fiscal year to any metropolitan city or urban county, if such payment would result in such city or county receiving an aggregate amount which is in excess of its full hold-harmless amount, except that this limitation would not apply with respect to any city or county if the amount allotted by reason of such extra payment when added to the formula entitlement exceeds such full holdharmless amount.

Subsection (f) would make the Secretary's determination and calculations of allocations and entitlements final and conclusive.

Section 8. Loans

This section would provide that nothing in this Act prohibits a unit. of general local government from obtaining loans to finance any community development activity, and from pledging, or offering as security for such loan, any asset which it otherwise may pledge or offer as security.

Section 9. Nondiscrimination

This section would provide for the nondiscriminatory use of Federal assistance made available under the act.

Subsection (a) would provide that no person in the United States shall on the ground of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this Act.

Subsection (b) would provide that whenever the Secretary determines that a recipient has failed to comply with subsection (a) or an applicable regulation, he shall notify the Governor of the State (or, in the case of a unit of local government, which has not received shared revenues from the State, the chief executive of such unit) of the noncompliance and shall request the Governor or the chief executive to secure compliance. If within a reasonable period of time, not to exceed 60 days, the Governor or the chief executive fails or refuses to secure compliance the Secretary would be authorized (1) to refer the matter to the Attorney General with a recommendation that an appropriate civil action be instituted; (2) to exercise the powers and functions provided by Title VI of the Civil Rights Act of 1964; (3) to exercise the powers and functions provided for in section 15 of this Act; or (4) to take such other action provided by law.

Subsection (c) would provide that when a matter is referred to the Attorney General pursuant to subsection (b), or whenever the Attorney General has reason to believe that a State government or unit of local government is engaged in a pattern or practice in violation of the provisions of this section, he may bring a civil action in any appropriate United States district court for such relief as may be appropriate, including injunctive relief.

Section 10. Labor standards

This section would require that all laborers and mechanics, employed by contractors or subcontractors in the performance of work on any construction project financed in whole or in part with shared revenue funds, must be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act. This section would apply to the construction of residential property only if such residential property is designed for residential use for twelve or more families.

Section 11. Matching grants

This section would provide that shared revenue funds may be used as matching shares for Federal programs which provide assistance for community development activities and that neither the Secretary nor any State shall require any matching of State or local funds as a condition to making payments under this Act.

Section 12. Use of shared revenue to close out urban renewal projects This section would authorize the Secretary to terminate any urban renewal project being carried out under title I of the Housing Act of 1949 as soon as practicable after consultation with the agency carrying out the project and the chief executive of the locality in which it is located, and to effect a financial closeout as if the project had been fully completed on the termination date. Any funds available to such project at the time of closeout would continue to be available to the unit of general local government for the area in which the project is located for use in meeting its community development objectives. Such closeout would be based upon the costs incurred and capital grants earned for the project to the date of termination. If such closeout did not result in full prepayment of the principal of, and accrued interest. on, any temporary loans made under title I of the Housing Act of 1949 for the project, the Secretary could, notwithstanding any other provision of this Act, condition distribution of funds pursuant to section 7 of this Act to the unit of general local government for the area in which the project is located upon the use of such funds, in such amounts, and staged over such time periods as the Secretary deems appropriate, to repay such temporary loans.

Section 13. Records, audit, and reports

This section would provide that in order to assure that revenues shared under this Act are used in accordance with its provisions, each recipient must (1) use such fiscal, audit, and accounting procedures as may be necessary to assure proper accounting for payments received by it, and proper disbursement of such payments, (2) provide to the Secretary and the Comptroller General of the United States access to, and the right to examine, any books, documents, papers, or records as he requires, and (3) make such reports to the Secretary or the Comptroller General of the United States as he requires.

Section 14. Relocation

Subsection (a) would amend Sec. 217 of the Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970 to add a provision that permits relocation payments for displacement as a direct result of any community development activities, 25 percent or

more of the cost of which is paid for with shared revenue funds received under the Better Communities Act.

Subsection (b) would provide that notwithstanding section 211 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (which makes the cost of relocation payments and assistance a project expense and authorizes a Federal payment for the first $25,000 of relocation costs for each displacement which occurs prior to July 1, 1972) no Federal contribution in addition to shared revenues shall be made to recipients for costs incurred in providing relocation payments and assistance for those displaced by community development activities assisted with community development special revenue sharing funds.

Section 15. Remedies for noncompliance

This section would provide for remedies for noncompliance with any provision of this Act as follows:

Subsection (a) would provide that if the Secretary, after reasonable notice and opportunity for hearing finds that a recipient of revenues shared under this Act has failed to comply substantially with any provision of this Act, the Secretary, until he is satisfied that there is no longer any such failure to comply, would be required to terminate payments to such State under this Act, or reduce payments under this Act by an amount equal to the amount of such payments which were not expended in accordance with this Act, or limit the availability of payments under this Act to programs, projects, or activities not affected by such failure to comply.

Subsection (b) would provide that if in lieu of, or in addition to, any action authorized by subsection (a), the Secretary may, if he has reason to believe that a recipient has failed to comply substantially with any provision of this Act, refer the matter to the Attorney General of the United States with a recommendation that an appropriate civil action be instituted. Upon such a referral the Attorney General could bring a civil action in any United States district court having venue thereof for such relief as may be appropriate, including an action to recover revenues shared under this Act which were not expended in accordance with it, or for mandatory or injunctive relief.

Subsection (c) would provide that if any recipient which receives notice, under subsection (a), of the termination, reduction, or limitation of revenues shared could, within sixty days after receiving such notice, file with the United States Court of Appeals for the circuit in which such State is located, or in the United States Court of Appeals for the District of Columbia, a petition for review of the Secretary's action. The petitioner would have to transmit copies of the petition to the Secretary and the Attorney General of the United States, who shall represent the Secretary in the litigation.

The Secretary would be required to file in the court the record of the proceeding on which he based his action, as provided in section 2112 of title 28, United States Code. No objection to the action of the Secretary could be considered by the court unless such objection has been urged before the Secretary.

The court would have jurisdiction to affirm or modify the action of the Secretary or to set it aside in whole or in part. The findings of fact by the Secretary, if supported by substantial evidence on the record

considered as a whole, would be conclusive. The court could order additional evidence to be taken by the Secretary, and to be made part of the record. The Secretary could modify his findings of fact, or make new findings, by reason of the new evidence so taken and filed with the court, and he would also be required to file such modified or new findings, which findings with respect to questions of fact would be conclusive if supported by substantial evidence on the record considered as a whole, and he would also file his recommendations, if any, for the modification or setting aside of his original action.

Upon the filing of the record with the court, the jurisdiction of the court would be exclusive and its judgment would be final, except that such judgment would be subject to review by the Supreme Court of the United States upon writ of certiorari or certification as provided in section 1254 of title 28, United States Code.

Section 16. General provisions

Shared revenues would be paid to recipients in such installments as the Secretary may determine taking into account the objective that the time elapsing between the transfer of funds from the United States Treasury and its disbursement by a recipient shall be minimized.

Subsection (a) would provide that the Secretary must prescribe such rules, regulations, and standards as may be necessary to carry out the purposes and conditions of this Act.

Subsection (b) would require the Secretary to include an evaluation of the effectiveness of this Act in his annual report to the President on departmental activities required by section 8 of the Department of Housing and Urban Development Act.

Section (c) would require each recipient to provide for the expenditure of amounts received under this Act only in accordance with the laws and procedures applicable to the expenditures of its own revenues. Section 17. Conforming and technical amendments

Subsection (a) would provide that this Act shall be effective upon enactment, but no funds would be allotted before fiscal year 1975. Subsection (b) would provide that no new grants or loans may be made under section 312 of the Housing Act of 1964, section 702 or section 703 of the Housing and Urban Development Act of 1965, title VII of the Housing Act of 1961, or title I of the Demonstration Cities and Metropolitan Development Act of 1966 after the effective date of this Act; after June 30, 1974, no new loans or grants could be made under title I of the Housing Act of 1949. In certain limited cases, new grants and loans-but not amendatories-could continue to be made on the basis of previous commitments.

Subsection (c) would amend Section 3689 of the Revised Statutes, as amended, (31 U.S.C. 711) to provide for payments required from time to time under contracts entered into pursuant to section 103 (b) of the Housing Act of 1949, as amended, with respect to projects or programs for which funds have been committed on or before June 30, 1973, and for which funds have not previously been appropriated.

Subsection (d) would authorize the Secretary to transfer the assets and liabilities of any superseded or nonactive program of housing or urban development to the revolving fund for liquidating programs established pursuant to title II of the Independent Offices Appropriation Act of 1955.

93D CONGRESS 1ST SESSION

H. R. 10688

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 2, 1973

Mr. WIDNALL (by request) introduced the following bill; which was referred to the Committee on Banking and Currency

A BILL

To improve and simplify laws relating to housing and housing

assistance.

1

Be it enacted by the Senate and House of Representa

2 tives of the United States of America in Congress assembled,

3 That this Act may be cited as the "Housing Act of 1973".

4

5

6

TITLE I-DIRECT CASH ASSISTANCE

FINDINGS AND PURPOSE

SEC. 102. (a) The Congress hereby finds and declares

7 that

8

9

10

I

(1) Federal subsidized housing programs have not made an adequate contribution toward attaining "a decent home and suitable living environment for every

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