116 1 necessary for the provision of such services. To the maximum 2 extent available and appropriate, existing public and private 3 agencies in the community shall be used for the provision of 4 such services. 5 "(5) The term 'acquisition cost' means the amount pru6 dently required to be expended by a public housing agency 7 in acquiring a low-income housing project. 8 "(6) The term 'public housing agency' means any State, 9 county, municipality, or other governmental entity or public 10 body (or agency or instrumentality thereof) which is author11 ized to engage in or assist in the development or operation of 12 low-income housing. 13 "(7) The term 'State' includes the several States, the 14 District of Columbia, the Commonwealth of Puerto Rico, the 15 territories and possessions of the United States, the Trust 16 Territory of the Pacific Islands, and Indian tribes, bands, 17 groups, and Nations, including Alaska Indians, Aleuts, and 18 Eskimos, of the United States. 19 "(8) The terms 'low-income housing project' and 'proj 20 ect' mean (A) any low-income housing developed, acquired, 21 or assisted by a public housing agency under this Act, and 22 (B) the improvement of any such housing. 23 "(9) The term 'Secretary' means the Secretary of Hous 24 ing and Urban Development. 1 2 117 "LOANS FOR LOW-INCOME HOUSING PROJECTS "SEC. 4. (a) The Secretary may make loans or com3 mitments to make loans to public housing agencies to help 4 finance or refinance the development, acquisition, or opera5 tion of low-income housing projects by such agencies. Any 6 contract for such loans and any amendment to a contract 7 for such loans shall provide that such loans shall bear inter 8 11 est at a rate specified by the Secretary which shall not be 9 less than a rate determined by the Secretary of the Treasury 10 taking into consideration the current average market yield on outstanding marketable obligations of the United States. 12 with remaining periods to maturity comparable to the aver13 age maturities of such loans, plus one-eighth of 1 per centum. 14 Such loans shall be secured in such manner and shall be 15 repaid within such period not exceeding forty years from the 16 date of the bonds evidencing the loan, as the Secretary may 17 determine. The Secretary may require loans or commitments 18 to make loans under this section to be pledged as security 19 for obligations issued by a public housing agency in connec20 tion with a low-income housing project. 21 "(b) The Secretary may issue and have outstanding at 22 any one time notes and other obligations for purchase by the 23 Secretary of the Treasury in an amount which shall not, 118 1 unless authorized by the President, exceed $1,500,000,000. 2 For the purpose of determining obligations incurred to make 3 loans pursuant to this Act against any limitation otherwise 4 applicable with respect to such loans, the Secretary shall 5 estimate the maximum amount to be loaned at any one time 6 pursuant to loan agreements then outstanding with public 7 housing agencies. Such notes or other obligations shall be in 8 such forms and denominations and shall be subject to such 9 terms and conditions as may be prescribed by the Secretary 10 with the approval of the Secretary of the Treasury. The 11 notes or other obligations issued under this subsection shall 12 have such maturities and bear such rate or rates of interest 13 as shall be determined by the Secretary of the Treasury. The 14 Secretary of the Treasury is authorized and directed to pur15 chase any notes or other obligations of the Secretary issued 16 hereunder and for such purpose is authorized to use as a pub17 lic debt transaction the proceeds from the sale of any securi18 ties issued under the Second Liberty Bond Act, as amended, 19 and the purposes for which securities may be issued under 20 such Act, as amended, are extended to include any purchases 21 of such obligations. The Secretary of the Treasury may at 22 any time sell any of the notes or other obligations acquired by 23 him under this section. All redemptions, purchases, and sales 24 by the Secretary of the Treasury of such notes or other obliga 79-555 - 72-9 119 1 tions shall be treated as public debt transactions of the United 2 States. 3 "ANNUAL CONTRIBUTIONS FOR LOW-INCOME HOUSING 4 5 PROJECTS "SEC. 5. (a) The Secretary may make annual contribu6 tions to public housing agencies to assist in achieving and 7 maintaining the low-income character of their projects. The 8 Secretary shall embody the provisions for such annual con9 tributions in a contract guaranteeing their payment. The 10 contribution payable annually under this section shall in no 11 case exceed a sum equal to the annual amount of principal 12 and interest payable on obligations issued by the public 13 housing agency to finance the development or acquisition 14 cost of the low-income project involved. The amount of an15 nual contributions which would be established for a newly 16 constructed project by a public housing agency designed to 17 accommodate a number of families of a given size and kind 18 may be established under this section for a project by such 19 public housing agency which would provide housing for the 20 comparable number, sizes, and kinds of families through the 21 acquisition, acquisition and rehabilitation, or use under lease 22 of structures which are suitable for low-income housing use 23 and obtained in the local market. Annual contributions pay24 able under this section shall be pledged, if the Secretary so 120 1 requires, as security for obligations issued by a public hous2 ing agency to assist the development or acquisition of the 3 project to which annual contributions relate and shall be 4 paid over a period not to exceed forty years. 5 "(b) The Secretary may prescribe regulations fixing 6 the maximum contributions available under different circum7 stances, giving consideration to cost, location, size, rent8 paying ability of prospective tenants, or other factors bear9 ing upon the amounts and periods of assistance needed to 10 achieve and maintain low rentals. Such regulations may pro11 vide for rates of contribution based upon development, ac12 quisition or operation costs, number of dwelling units, num13 ber of persons housed, interest charges, or other appropriate 14 factors. 15 "(c) The Secretary is authorized to enter into contracts 16 for annual contributions under this section aggregating not 17 more than $1,199,000,000 per annum, which limit shall be 18 increased by $225,000,000 on July 1, 1971, and by $150,19 000,000 on July 1, 1972. Of the aggregate amount of con20 tracts for annual contributions authorized in this subsection, 21 the Secretary is authorized to enter into contracts for annual 22 contributions with respect to the modernization of low-income 23 housing projects in an amount aggregating not more than 24 $100,000,000 per annum. The Secretary shall enter into only 25 such new contracts for preliminary loans. as are consistent |