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"SHORT TITLE

"SECTION 1. This Act may be cited as the United

3 States Housing Act of 1937'.

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"DECLARATION OF POLICY

"SEC. 2. It is the purpose of this Act to promote the 6 general welfare of the Nation by employing its funds and 7 credit, as provided in this Act, to assist the several States 8 and their political subdivisions to remedy the unsafe and 9 unsanitary housing conditions and the acute shortage of 10 decent, safe, and sanitary dwellings for families of low in11 come and, consistent with the provisions of this Act, to vest 12 in local public housing agencies the maximum amount of 13 responsibility in the administration of their housing pro14 grams. It is the sense of the Congress that no person should 15 be barred from serving on the board of directors or similar 16 governing body of a local public housing agency because of 17 his tenancy in a low-income housing project.

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"(1) The term 'low-income housing' means decent, safe, 21 and sanitary dwellings within the financial reach of families 22 of low income, and embraces all necessary appurtenances 23 thereto. Except as otherwise provided in this Act, income 24 limits for occupancy and rents shall be fixed by the public 25 housing agency and approved by the Secretary, after taking

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1 into consideration (A) the family size, composition, age, 2 physical handicaps, and other factors which might affect the 3 rent-paying ability of the family, and (B) the economic fac4 tors which might affect the financial stability and solvency of 5 the project. The rental for any dwelling unit shall not exceed 6 one-fourth of the family's income as defined by the Secretary. 7 Notwithstanding the preceding sentence, the rental for any 8 dwelling unit shall not be less than an amount equal to 20 9 per centum of the operating costs attributable to the dwelling 10 unit. In defining income for purposes of this Act, the Secre11 tary shall consider income from all sources of each member 12 of the family residing in the household, except that there 13 shall be excluded

"(A) the income of any family member (other than the head of the household or his spouse) who is under eighteen years of age or is a full-time student;

"(B) the first $300 of the income of a secondary wage earner who is the spouse of the head of the household;

"(C) an amount equal to 5 per centum of the income of the head of the household and his spouse (or, in the case of an elderly family, 10 per centum of such income);

"(D) an amount equal to $300 for each member of

the family residing in the household (other than the

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head of the household or his spouse) who is under eighteen years of age or who is eighteen years of age

or older but has no income included in family income for purposes of this section;

"(E) nonrecurring income, as determined by the Secretary; and

"(F) such extraordinary medical or other expenses

as the Secretary approves for exclusion.

"(2) The term 'low-income families' means families 10 who are in the lowest income group and who cannot afford 11 to pay enough to cause private enterprise in their locality 12 or metropolitan area to build an adequate supply of decent, 13 safe, and sanitary dwelling for their use. A low-income 14 family may consist of a single person where such person is 15 (A) the remaining member of a tenant family, (B) at least 16 fifty years of age, (C) under a disability as defined in sec17 tion 223 of the Social Security Act, (D) a handicapped 18 person who is determined, pursuant to regulations issued by 19 the Secretary, to have an impairment which (i) is 20 expected to be of long-continued and indefinite duration, 21 (ii) substantially impedes his ability to live independently, 22 and (iii) is of such a nature that such ability could be im23 proved by more suitable housing conditions, (E) a person 24 displaced by governmental action, or (F) a person whose 25 present or former dwelling is situated in an area determined

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1 by the Small Business Administration, subsequent to April 1, 2 1965, to have been affected by a natural disaster and has 3 been extensively damaged or destroyed as the result of such 4 disaster.

5 "(3) The term 'development' means any or all under6 takings necessary for planning, land acquisition, demolition, 7 construction, or equipment in connection with a low-income 8 housing project. The term 'development cost' shall comprise 9 the cost incurred by a public housing agency in such under10 takings and their necessary financing (including the payment 11 of carrying charges), and in otherwise carrying out the 12 development of such project. Construction activity in con13 nection with a low-income housing project may be confined 14 to the reconstruction, remodeling, or repair of an existing 15 building.

16 "(4) The term 'operation' means any or all under17 takings appropriate for management, operation, services, 18 maintenance, or financing in connection with a low-income 19 housing project. The term also means the financing of tenant 20 programs and services for families residing in low-income 21 housing projects, particularly where there is maximum 22 feasible participation of the tenants in the development and 23 operation of such tenant programs and services. As used 24 in this paragraph, the term 'tenant programs and services' 25 includes the development and maintenance of tenant organi

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1 zations which participate in the management of low-income 2 housing projects; the training of tenants to manage and op3 erate such projects and the utilization of their services in 4 project management and operation; counseling on household 5 management, housekeeping, budgeting, money management, 6 child care, and similar matters; advice as to resources for 7 job training and placement, education, welfare, health, and 8 other community services; services which are directly related 9 to meeting tenant needs and providing a wholesome living 10 environment; and referral to appropriate agencies when 11 necessary for the provision of such services. To the maximum 12 extent available and appropriate, existing public and private 13 agencies in the community shall be used for the provision of 14 such services.

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"(5) The term 'acquisition cost' means the amount pru16 dently required to be expended by a public housing agency 17 in acquiring a low-income housing project.

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"(6) The term 'public housing agency' means any State, 19 county, municipality, or other governmental entity or public 20 body (or agency or instrumentality thereof), or combination 21 thereof, which is authorized to engage in or assist in the 22 development or operation of low-income housing.

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"(7) The term 'State' includes the several States, the 24 District of Columbia, the Commonwealth of Puerto Rico, the 25 territories and possessions of the United States, the Trust