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LABOR STANDARDS

SEC. 409. All laborers and mechanics employed by con3 tractors or subcontractors in the performance of construction 4 work financed in whole or in part with grants received under 5 this title shall be paid wages at rates not less than those 6 prevailing on similar construction in the locality as deter7 mined by the Secretary of Labor in accordance with the 8 Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-5): 9 Provided, That this section shall apply to the construction 10 of residential property only if such residential property is 11 designed for residential use for eight or more families. The 12 Secretary of Labor shall have, with respect to such labor 13 standards, the authority and functions set forth in Reorgan14 ization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 15 Stat. 1267) and section 2 of the Act of June 13, 1934, as 16 amended (48 Stat. 948; 40 U.S.C. 276 (c)).

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MATCHING GRANTS

SEC. 410. Funds provided under this title may be used 19 by a recipient to cover up to 90 per centum of the required 20 non-Federal share of any Federal grant-in-aid program where 21 assistance is being provided for community development 22 activities approved by the Secretary.

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RECORDS, AUDIT, AND REPORTS

2 SEC. 411. (a) All amounts distributed to recipients un

3 der this title shall be properly accounted for as Federal funds 4 in the accounts of such recipients.

5 (b) In order to assure that amounts distributed under 6 this title are used in accordance with the provisions of this 7 title, each recipient shall

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(1) use such fiscal and accounting procedures as may be necessary to assure (i) proper accounting for amounts received by it and (ii) proper disbursement of such amounts;

(2) provide to the Secretary, on reasonable notice, such access to, and such right to examine, any books, documents, papers, or records, as he may reasonably require; and

(3) make such reports to the Secretary as he may reasonably require.

(c) Insofar as they relate to funds provided under this 19 title, the financial transactions of recipients of such funds may 20 be audited by the General Accounting Office under such rules 21 and regulations as may be prescribed by the Comptroller 22 General of the United States. The representatives of the Gen

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1 eral Accounting Office shall have access to all books, ac2 counts, records, reports, files, and other papers, things, or 3 property belonging to or in use by such recipients pertaining 4 to such financial transactions and necessary to facilitate the 5 audit.

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EFFECTIVE DATE; TERMINATION OF EXISTING

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PROGRAMS

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SEC. 412. The provisions of this title shall be effective

on July 1, 1973. After such effective date, no new grants

or loans may be made pursuant to title I of the Housing 11 Act of 1949, section 312 of the Housing Act of 1964, 12 section 703 of the Housing and Urban Development Act 13 of 1965, or title VII of the Housing Act of 1961, except 14 with respect to projects or programs for which funds have 15 been committed on or before June 30, 1973.

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LIQUIDATION OF SUPERSEDED PROGRAMS

SEC. 413. (a) Section 3689 of the Revised Statutes, 18 as amended (31 U.S.C. 711), is further amended by add19 ing the following new paragraph at the end thereof:

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"(22) For payments required from time to time under contracts entered into pursuant to section 103 (b) of the 22 Housing Act of 1949, as amended, with respect to projects 23 or programs for which funds have been committed on or 24 before June 30, 1973, and for which funds have not previ25 ously been appropriated."

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1 (b) The Secretary is authorized to transfer the assets 2 and liabilities of any program of housing or urban develop3 ment which is superseded or inactive by reason of this title 4 to the revolving fund for liquidating programs established 5 pursuant to title II of the Independent Offices Appropria6 tion Act of 1955 (Public Law 81-428; 68 Stat. 272, 295). TITLE V-STATE DEVELOPMENT AGENCIES

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DECLARATION OF PURPOSE

SEC. 501. It is the purpose of this title to encourage the 10 formation of State development agencies which have broad 11 and flexible authority to carry out development activities 12 designed to (1) provide housing and related facilities for persons and families of low and moderate income, (2) pro14 mote the sound growth and development of neighborhoods 15 through the revitalization of slum and blighted areas, and 16 (3) increase and improve employment opportunities for 17 the unemployed and underemployed through the development 18 and redevelopment of industrial, manufacturing, and com19 mercial facilities.

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ELIGIBLE DEVELOPMENT AGENCIES

SEC. 502. (a) A State development agency is eligible 22 for assistance under this title only if the Secretary deter23 mines that it is fully empowered and has adequate authority, 24 acting as a large-scale developer, to carry out the purposes 25 specified in clauses (1), (2), and (3) of section 501,

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1 including the authority to sell, lease, or otherwise dispose of 2 its interest in projects undertaken by it in carrying out the 3 purposes of this title, to participate in programs or projects 4 carried on by Federal, State, or local governments, to pro5 vide for the relocation of persons, families, business concerns, 6 and nonprofit organizations displaced in carrying out its de7 velopment activities, to exercise its powers and functions 8 through subsidiaries established by it, and to establish com9 munity advisory committees to advise it concerning its pro10 posed activities in any area.

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(b) For the purposes of this title, a "State development 12 agency" is any public body or agency, publicly sponsored 13 corporation, or instrumentality of one or more States which 14 is designated by the Governor (or Governors in the case of an interstate development agency) for purposes of this title. (c) As used in this title, the term "State" means any 17 State of the United States, the District of Columbia, the 18 Commonwealth of Puerto Rico, or any territory or posses19 sion of the United States.

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GUARANTEES OF OBLIGATIONS

21 SEC. 503. (a) The Secretary of Housing and Urban 22 Development (hereinafter referred to as the "Secretary") 23 is authorized to guarantee, and enter into commitments to guarantee, the bonds, debentures, notes, and other obliga25 tions issued by State development agencies to finance devel

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