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1 located in such areas, in order to provide a demonstration

2 of the effectiveness of the availability of mortgage financing

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on reasonable terms in arresting neighborhood deterioration."

TITLE III-PUBLIC HOUSING ASSISTANCE

PROGRAM

CONSOLIDATION AND REVISION OF PROGRAM

SEC. 301. The United States Housing Act of 1937 is

8 amended to read as follows:

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10

"SHORT TITLE

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

11 States Housing Act of 1937'.

12

"DECLARATION OF POLICY

13 "SEC. 2. It is the purpose of this Act to promote the 14 general welfare of the Nation by employing its funds and 15 credit, as provided in this Act, to assist the several States 16 and their political subdivisions to remedy the unsafe and 17 unsanitary housing conditions and the acute shortage of 18 decent, safe, and sanitary dwellings for families of low in19 come and, consistent with the provisions of this Act, to vest 20 in local public housing agencies the maximum amount of 21 responsibility in the administration of their housing pro22 grams. It is the sense of the Congress that no person should 23 be barred from serving on the board of directors or similar 24 governing body of a local public housing agency because of 25 his tenancy in a low-income housing project.

3

“(1) The term 'low-income housing' means decent, safe,

4 and sanitary dwellings within the financial reach of families 5 of low income, and embraces all necessary appurtenances 6 thereto. Except as otherwise provided in this Act, income 7 limits for occupancy and rents shall be fixed by the public 8 housing agency and approved by the Secretary, after taking 9 into consideration (A) the family size, composition, age, 10 physical handicaps, and other factors which might affect the 11 rent-paying ability of the family, and (B) the economic fac12 tors which might affect the financial stability and solvency of 13 the project. The rental for any dwelling unit shall not exceed 14 one-fourth of the family's income as defined by the Secretary, 15 except that in no case shall the rental for any dwelling unit 16 be less than a minimum amount established by the public 17 housing agency and approved by the Secretary. Notwith18 standing any other provision of Federal law or regulations 19 thereunder, a public agency shall not reduce welfare as20 sistance payments to any tenant or group of tenants in low21 income housing as a result of any reduction in rent resulting 22 from the application of the rent limitation set forth in the

23

preceding sentence and required by such limitation. In de24 fining income for purposes of this Act, the Secretary shall

25 consider income from all sources of each member of the

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1 family residing in the household, except that there shall be

2 excluded

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1271

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"(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 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

"(F) such extraordinary medical or other expenses

as the Secretary approves for exclusion.

"(2) The term 'low-income families' means families

24 who are in the lowest income group and who cannot afford

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1 to pay enough to cause private enterprise in their locality 2 or metropolitan area to build an adequate supply of decent, 3 safe, and sanitary dwellings for their use. A low-income 4 family may consist of a single person where such person is 5 (A) the remaining member of a tenant family, (B) at least 6 fifty years of age, (C) under a disability as defined in sec7 tion 223 of the Social Security Act, (D) a handicapped 8 person who is determined, pursuant to regulations issued by 9 the Secretary, to have a physical impairment which (i) is 10 expected to be of long-continued and indefinite duration, 11 (ii) substantially impedes his ability to live independently, 12 and (ii) is of such a nature that such ability could be im13 proved by more suitable housing conditions, (E) a person 14 displaced by governmental action, or (F) a person whose present or former dwelling is situated in an area determined 16 by the Small Business Administration, subsequent to April 1,

15

1965, to have been affected by a natural disaster and has 18 been extensively damaged or destroyed as the result of such 19 disaster.

20 "(3) The term 'development' means any or all under21 takings necessary for planning, land acquisition, demolition, 22 construction, or equipment in connection with a low-income 23 housing project. The term 'development cost' shall comprise 24 the cost incurred by a public housing agency in such under25 takings and their necessary financing (including the payment

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1 of carrying charges), and in otherwise carrying out the 2 development of such project. Construction activity in con3 nection with a low-income housing project may be confined 4 to the reconstruction, remodeling, or repair of an existing 5 building.

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"(4) The term 'operation' means any or all under7 takings appropriate for management, operation, services, 8 maintenance, or financing in connection with a low-income 9 housing project. The term also means the financing of tenant 10 programs and services for families residing in low-income 11 housing projects, particularly where there is maximum 12 feasible participation of the tenants in the development and 13 operation of such tenant programs and services. As used 14 in this paragraph, the term 'tenant programs and services' 15 includes the development and maintenance of tenant organi16 zations which participate in the management of low-income 17 housing projects; the training of tenants to manage and op18 crate such projects and the utilization of their services in 19 project management and operation; counseling on household 20 management, housekeeping, budgeting, money management, 21 child care, and similar matters; advice as to resources for 22 job training and placement, education, welfare, health, and 23 other community services; services which are directly related to meeting tenant needs and providing a wholesome living 25 environment; and referral to appropriate agencies when

24