Additional information submitted to the subcommittee by-Continued Effect on tax ratables of the urban renewal program in Phila- Resolutions adopted, 30th Annual Conference of Mayors, U.S. 1964 Annual Conference-U.S. Conference of Mayors, May 24-27, Answers to questions submitted to Robert C. Weaver, Admin- istrator, HHFA, dated March 11, 1964---- Exhibit A. Summary of fixed annual contributions and amount available to reduce annual contribution (table).. Exhibit B. Payments in lieu of taxes paid by local housing authorities during 1961 and 1962, by States (tables) - Center for Community Studies, Boston, Mass., letter of Chester Page 534 546 892 FHA housing for the elderly under section 231, projects in active 702 Mortgage Bankers Association of America, Washington, D.C., 700 HOUSING AND COMMUNITY DEVELOPMENT LEGISLATION MONDAY, FEBRUARY 17, 1964 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON HOUSING OF THE COMMITTEE ON BANKING AND CURRENCY, Washington, D.C. The subcommittee met, pursuant to notice, at 10 a.m., in room 1301, Longworth House Office Building, Hon. Albert Rains (chairman) presiding. Present: Representatives Rains, Barrett, Mrs. Sullivan, Ashley, Vanik, Moorhead, Stephens, St Germain, Gonzalez, White, Widnall, Mrs. Dwyer, Harvey, and McDade. Mr. RAINS. The committee will be in order. We begin 2 weeks of hearings this morning on the administration's housing bill, and all related bills that have been introduced by various Members of Congress, and we want to welcome Dr. Weaver and his top staff, who are to be our witnesses today. And we welcome also the splendid audience we have. We appreciate your coming. (H.R. 9751 follows:) [H.R. 9751, 88th Cong., 2d sess.] A BILL To help provide adequate dwelling accommodations for more families who have low or moderate incomes, who are elderly, or who are subjected to the special problems of displacement from their homes by Government action; to promote orderly community development and growth; and to extend and amend laws relating to housing, urban renewal, and community facilities Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Housing and Community Development Act of 1964". TITLE I-NEW AIDS FOR DISPLACED FAMILIES AND BUSINESSES, AND ELDERLY IN URBAN RENEWAL AREAS RELOCATION PAYMENTS TO DISPLACED PERSONS AND BUSINESSES SEC. 101. (a) Title I of the Housing Act of 1949 is amended by adding at the end thereof the following new section: "RELOCATION "SEC. 114. (a) Notwithstanding any other provision of this title, an urban renewal project may include the making of paymemnts as prescribed in this section to displaced families, individuals, business concerns, and nonprofit organizations; and any contract for financial assistance under this title shall provide that the capital grant otherwise payable for the project shall be increased by an amount equal to such payments and that no part of the amount of such payments shall be required to be contributed as part of the local grant-in-aid. As used in this section, 'displaced' refers to displacement from an urban renewal area made necessary by (i) the acquisition of real property by a local public agency or by any other public body, (ii) code enforcement activities undertaken in connection with an urban renewal project, or (iii) a program of voluntary rehabilitation of buildings or other improvements in accordance with an urban renewal plan. "(b) A local public agency may pay the following to any displaced business concern or nonprofit organization: "(1) its reasonable and necessary moving expenses and any actual direct losses of property except goodwill or profit (which are incurred on and after August 7, 1956, and for which reimbursement or compensation is not otherwise made): Provided, That such payments shall not exceed $3,000 (or if greater, the total certified actual moving expenses); and "(2) additional amounts of (i) $1,000 upon displacement of a private business concern, and (ii) $1,500 if such concern has not been reestablished within one year following displacement and has not received any relocation payment under clause (1) of this subsection: Provided, That payments may be made under this clause (2) only to a business concern with average annual earnings of less than $10,000 per year and which (i) was doing business in a location in the urban renewal area on the date of local approval of the urban renewal plan, (ii) is displaced on or after January 27, 1964, and (iii) is not part of an enterprise having establishments outside the urban renewal area. "(c) (i) A local public agency may pay to any displaced individual or family its reasonable and necessary moving expenses and any actual direct losses of property (which are incurred on and after August 7, 1956, and for which reimbursement or compensation is not otherwise made): Provided, That such payments shall not exceed $200; And provided further, That the Administrator may authorize payment to individuals and families of fixed amounts (not to exceed $200 in any case) in lieu of their respective reasonable and necessary moving expenses and actual direct losses of property; and "(ii) A local public agency may pay (in addition to any amount under (i)) to any displaced family, or to any displaced individual sixty-two years of age or over, a monthly payment, for not to exceed twenty-four months, equal to one-twelfth of the amount which, when added to 20 per centum of the annual income of such displaced individual or family at the time of its displacement, equals the average annual rental required for a decent, safe, and sanitary dwelling of modest standards adequate in size to accommodate the displaced individual or family (in the urban renewal area or in other areas not generally less desirable in regard to public utilities and public and commercial facilities): Provided, That this monthly payment shall be available only to such individual or family who is displaced on or after January 27, 1964, and whose income is below the limits established to determine eligibility for admission to housing constructed or to be constructed in the locality under the provisions of section 221(d)(3) of the National Housing Act, and such payment shall not exceed the estimated proportionate amount, attributable to a dwelling unit of comparable size and type, of the fixed annual contribution for the most recently constructed low-rent housing project assisted under the United States Housing Act of 1937 in the same locality or the nearest locality of comparable size and in which there exists comparable cost levels: Provided further, That such payment shall be made only to such individual or family who is unable to secure a dwelling unit in a low-rent housing project assisted under the United States Housing Act of 1937, or under a State or local program found by the Administrator to have the same general purposes as the Federal program under such Aet. "(d) The Administrator is authorized to establish such rules and regulations as he may deem appropriate in carrying out the provisions of this section. Except as may be provided in any contract between the Administrator and a local public agency, or in regulations promulgated by the Administrator, determinations of any duly designated officer or agency as to eligibility for and the amount of relocation assistance authorized by this section shall be final and conclusive for any purposes and not subject to review by any court or any other officer. "(e) If a family or individual receiving payments under subsection (e) (ii) of this section is a displaced family or individual for the purposes of priority or preference in admission to housing assisted under the United States Housing Act of 1937 or section 221 of the National Housing Act the individual or family, if otherwise eligible for admission to such housing, shall retain such priority or preference at the end of the period which such payments are made." (b) Any contract with a local public agency which was executed under this title before the date of enactment of this Act may be amended to provide for payments authorized by this section. (c) Section 106 of the Housing Act of 1949 is amended by striking out all of subsection (f) and redesignating subsection (g) as subsection (f). REHABILITATION ASSISTANCE TO ELDERLY HOMEOWNERS IN URBAN RENEWAL AREAS SEC. 102. (a) Section 220 (h) of the National Housing Act is amended by adding the following at the end thereof: "(11) (A) To assist in the improvement of the homes of elderly persons of low or moderate incomes in urban renewal areas and to avoid their displacement when their homes can be improved to meet standards prescribed for the area by the urban renewal plan, a home improvement loan bearing interest at the same rate prescribed by the Commissioner for those mortgages which are insured under section 221 (d) (3) on the basis of determinations made by the Secretary of the Treasury pursuant to the proviso in section 221 (d) (5), may be insured under this subsection if— "(i) the borrower is sixty-two years of age or over and qualifies as a lowor moderate-income person or family in accordance with such regulations and requirements as may be prescribed by the Commissioner; "(ii) the property, when improved with the proceeds of the loan, will meet the standards prescribed for the area by the urban renewal plan; "(iii) the property to be improved is a one- or two-family home owned and occupied by the borrower; and "(iv) the instrument evidencing the obligation of the loan contains such provisions as may be prescribed by the Commissioner, including provisions that any outstanding balance of the loan shall become due and payable upon the transfer of title to the property by the borrower or in event of death of the borrower (or the death of the surviving spouse of the borrower). "(B) Notwithstanding any other provisions of this Act, the instrument evidencing the obligation of a loan insured under this paragraph may permit repayment of the principal amount of the loan to be deferred until the death of the borrower (or the death of the surviving spouse of the borrower) or the transfer of title to the property by the borrower, if the amount of the loan creates a total outstanding indebtedness which does not exceed 75 per centum of the sum of the estimated cost of improvement and the Commissioner's estimate of the value of the property before improvement. "(C) Notwithstanding any other provision of this Act, a home improvement loan insured pursuant to this paragraph may be insured with no premium charge, with a reduced premium charge, or with a premium charge for such period or periods during the time the insurance is in effect as the Commissioner may determine. There is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, such amounts as may be necessary to reimburse the section 220 Home Improvement Account for any net losses in connection with insurance under this paragraph.” (b) Section 220(d) (3) (A) is amended by adding the following clause at the end thereof: "(v) in a case of a mortgagor who is sixty-two years of age or over, who occupies a one- or two-family home, and who qualifies as a low- or moderateincome person in accordance with such regulations and requirements as may be prescribed by the Commissioner, the Commissioner may insure a mortgage, involving substantial repair or rehabilitation, and refinancing, bearing interest at the same rate as prescribed by the Commissioner for those mortgages which are insured under section 221(d) (3), on the basis of determinations made by the Secretary of the Treasury pursuant to the proviso in section 221(d) (5), and which involves a principal obligation not in excess of $10,000: Provided, That the mortgage contains a provision that any outstanding balance of the loan shall become due and payable upon transfer of title to the property by the mortgagor or in the event of death of the mortgagor (or the death of the surviving spouse of the mortgagor); Provided further, That if the mortgage to be insured does not exceed 75 per centum of the sum of the estimated cost of the repair and rehabilitation and the Commissioner's estimate of the value of the property before such repair and rehabilitation, the mortgage may provide that repayments to amortize the principal amount may be deferred until the death of the mortgagor (or the death of the surviving spouse of the mortgagor) or the transfer of the property: and provided further, That, notwithstanding any other provisions of this Act, a mortgage may be insured pursuant to this clause with no premium charge, with a reduced premium charge, or with a premium charge for such period or periods during the time the insurance is in effect, as the Commissioner may determine; and there is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, such amounts as may be necessary to reimburse the section 220 Housing Insurance Fund for any net losses in connection with insurance under this clause; or". TITLE II-MORTGAGE INSURANCE PROGRAMS LAND DEVELOPMENT SEC. 201. The National Housing Act is amended by adding at the end thereof the following new title: "TITLE X-MORTGAGE INSURANCE FOR LAND DEVELOPMENT "PURPOSE "SEC. 1001. The purpose of this title is (1) to assist in the provision of sites for residential and related uses which are properly planned and improved to provide a suitable living environment, maintain property values, and contribute to sound and economic community growth, and (2) to encourage more orderly urban growth and development through assistance in the establishment of new communities which are so situated and planned as to permit the most efficient use of public facilities, provide a basis for well-balanced economic development, conserve land resources, and meet the housing and related needs of families with varying incomes and personal requirements. "DEFINITIONS "SEC. 1002. As used in this title "(1) the term 'mortgage' means a lien on real estate in fee simple, or on a leasehold under a lease for not less than ninety-nine years which is renewable; and the term 'first mortgage' includes such classes of first liens as are commonly given to secure advances (including but not limited to advances during construction) on, or the unpaid purchase price, of real estate under the laws of the State in which the real estate is located, together with the credit instrument or instruments, if any, secured thereby, nad may be in the form of trust mortgages or mortgage indentures or deeds of trust securing notes, bonds, or other credit instruments; "(2) the terms 'mortgagee', 'mortgagor', and 'State' shall have the same meaning as when used in section 207 of this Act; "(3) the term 'improvements' means water lines and water supply installations, sewer lines and sewage disposal installations, roads, streets, curbs, gutters, sidewalks, storm drainage facilities, and other installations or work, whether on or off the site of the morgaged propery, which the Commissioner deems necessary or desirable to prepare land primarily for residential and related uses or to provide community structures or other similar facilities for public or common use; "(4) the term 'basic community systems improvements' means major transmission lines and related plants for water or sewer systems serving new communities; "(5) the term 'land development' means the process of making, installing, or constructing improvements, including basic community systems improvements; "(6) the term 'new community' means a locality so established and planned as to provide, on a balanced and internally cohesive basis, the housing, facilities, services, and amenities suitable and appropriate for urban living; "(7) the term 'local public body' means a county, city, or other political subdivision within which a new community or part of a new community is established, and any other political subdivision, public agency, or instrumentality of one or more States, counties, or political subdivisions empowered under law to take or withohld any action required in connection with the establishment of a new community. |