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APPROPRIATIONS

SEC. 12. There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of this Act. Appropriations authorized under this Act shall remain available until expended when so provided in appropriation Acts.

SEC. 13. As used in this Act

DEFINITIONS

(a) "Federal grant-in-aid program" means a program of Federal financial assistance other than loans and other than the assistance provided by this Act. (b) “City demonstration agency" means the city or any local public agency established or designated by the local governing body to administer the comprehensive city demonstration program.

(e) "City" means any municipality (or two or more municipalities acting dete jointly) or, with respect to urban areas outside of incorporated municipalities, any county or other public body (or two or more acting jointly) having general governmental powers.

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(d) "Local" agencies include State agencies and instrumentalities providing services or resources to a city or locality, and "local" resources include those provided to a city or locality by a State or its agency or instrumentality.

TERMINATION OF AUTHORITY

SEC. 14. (a) This Act and all authority conferred thereunder shall terminate at the close of June 30, 1971: Provided, That the functions, powers, duties, and authorities vested in the Secretary under this Act may be retained by the Secretary for the purpose of liquidating the affairs and functions conducted under this Act.

(b) The termination of this Act shall not affect the disbursement of funds under, or the carrying out of, any contract, commitment, or other obligation entered into pursuant to this Act prior to the date of such termination, or the taking of any action necessary to preserve or protect the interests of the United States in any amounts advanced or paid out in carrying on operations under this Act.

[H.R. 12946, 89th Cong., 2d sess.]

A BILL To provide incentives to planned metropolitan development and to otherwise assist urban development

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 "Urban
Development Act".

TITLE I-GRANTS TO ASSIST IN PLANNED METROPOLITAN
DEVELOPMENT

FINDINGS AND DECLARATION OF PURPOSE

SEC. 101. (a) The Congress hereby finds that the welfare of the Nation and of
its people is directly dependent upon the effective organization and functioning
of the metropolitan areas in which two-thirds of its people live and work.
It further finds that the continuing rapid growth of these areas makes it
essential that they prepare, keep current, and actually carry out comprehensive
plans and programs for their orderly physical development with a view to effi-
ciently meeting all their economic and social needs.

It further finds that metropolitan areas are especially handicapped in this
task by the complexity and scope of governmental services required in such
rapidly growing areas, the multiplicity of political jurisdictions and agencies in-
volved, and the inadequacy of the operational and administrative arrangements
available for cooperation among them.

It further finds that present requirements for areawide planning and programing in connection with various Federal programs have materially assisted in the solution of metropolitan problems, but that additional participation and cooperation are needed from the States and localities in perfecting and carrying out such areawide efforts.

(b) It is the purpose of this title to provide additional encouragement and assistance to States and localities, through supplementary grants for certain

federally assisted development projects, for making effective comprehensive metropolitan planning and programing.

GRANT AUTHORITY

SEC. 102. (a) The Secretary is authorized to make supplementary grants to applicant State and local public bodies and agencies carrying out, or assisting in carrying out. development projects meeting the requirement of this title. (b) Grants may be made under this title only for development projects in metropolitan areas for which it has been demonstrated, to the satisfaction of the Secretary, that

(1) metropolitanwide comprehensive planning and programing provide an adequate basis for evaluating (A) the location, financing, and scheduling of individual public facility projects (including but not limited to, sewer, water, and sewage treatment facilities; highway, mass transit, airport, and other transportation facilities; and recreation and other openspace areas) whether or not federally assisted; and (B) other proposed land development or uses, which projects or uses, because of their size, density, type, or location, have public metropolitanwide or interjurisdictional significance;

(2) adequate metropolitanwide institutional or other arrangements exist for coordinating, on the basis of such metropolitanwide comprehensive planning and programing, local public policies and activities affecting the development of the area; and

(3) public facility projects and other land development or uses which have a major impact on the development of the area are, in fact, being carried out in accord with such metropolitanwide comprehensive planning and programing.

(c) Where the applicant for a grant under this title is a county, municipality, or other general-purpose unit of local government, it must demonstrate, to the satisfaction of the Secretary, that taking into consideration the scope of its auhority and responsibilities it is adequately assuring that public facility projects and other land development or uses of puble metropolitanwide or interjurisdictional significance are being, and will be, carried out in accord with metropolitan planning and programing meeting the requirements of subsection (b). In making this determination the Secretary shall give special consideration to whether the applicant is effectively assisting in, and conformng to, metropolitan planning and programing through (1) the location and scheduling of public facility projects, whether or not federally assisted; and (2) the establishment and consistent administration of zoning codes, subdivision regulations, and similar land-use and density controls.

Where the applicant for a grant under this title is not a general-purpose unit of local government, both it and the general-purpose unit of local government having jurisdiction over the location of the project must meet requirements of this subsection.

(d) In making the determinations required under this section, the Secretary shall obtain, and give full consideration to, the comments of the body or bodies (State or local) responsible for planning and programing for the metropolitan

area.

(e) No grant shall be made under this title with respect to a development project for which a Federal grant has been made, or a contract of assistance has been entered into, under the legislation referred to in clause 1 of section 105 prior to February 21, 1966, or more than one year prior to the date on which the Secretary has made the determinations required under this section with respect to the applicant and to the area in which the project is located: Provided, That in the case of a project for which a contract of assistance under the legislation referred to in clause 1 of section 105 has been entered into after June 30, 1967, no grant shall be made under this title unless an application for such grant has been made on or before the date of such contract.

EXTENT OF GRANT

SEC. 103. (a) A grant under this title shall not exceed (1) 20 per centum of the cost of the project for which the grant is made; nor (2) the Federal grant made with respect to the project under the legislation referred to in clause 1 of section 105. In no case shall the total Federal contributions to the cost of such project be more than 80 per centum. Notwithstanding any other provision of law, in

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cluding requirements with respect to non-Federal contributions, grants under this title shall be eligible for inclusion (directly or through refunds or credit) as part of the financing for such projects: Provided, That projects or activities on the basis of which assistance is provided under section 6(c) of the Demonstration Cities Act of 1966 shall not be eligible for assistance under this title. (b) There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of this title. Appropriations authorized under this title shall remain available until expended when so provided in appropriations acts.

CONSULTATION AND CERTIFICATION

SEC. 104. In carrying out the provisions of this title, including the issuance of regulations, the Secretary shall consult with the Department of the Interior; the Department of Commerce; the Department of Health, Education, and Welfare; and the Federal Aviation Agency with respect to development projects assisted by those departments and agencies; and he shall, for the purpose of section 103, accept their respective certifications as to the cost of those projects and the amount of the non-Federal contribution paid or to be paid to that cost.

DEFINITIONS

SEC. 105. As used in this title

(1) "development project" means a project assisted or to be assisted under section 702 of the Housing and Urban Development Act of 1965; section 8 of the Federal Water Pollution Control Act; section 120 (a) of title 23, United States Code; section 9 of the Federal Airport Act; section 3 of the Urban Mass Transportation Act of 1964; title VII of the Housing Act of 1961; section 5 (e) of the Land and Water Conservation Fund Act of 1965; or section 101 (a) (1) of the Public Works and Economic Development Act of 1965 (for a project of a type which the Secretary determines to be eligible for assistance under other of the provisions listed above);

(2) "State" means any State of the United States, the Commonwealth of Puerto Rico, the Virgin Islands, or an agency or instrumentality of any of the foregoing;

(3) "metropolitan area" means a standard metropolitan statistical area as established by the Bureau of the Budget, subject however to such modifications and extensions as the Secretary may determine to be appropriate; and

(4) “Secretary” means the Secretary of Housing and Urban Development. TITLE II-LAND DEVELOPMENT AND NEW COMMUNITIES

MORTGAGE INSURANCE FOR NEW COMMUNITIES

SEC. 201. Title X of the National Housing Act is amended by inserting after section 1003 the following new section 1004 and redesignating the remaining sections accordingly :

"NEW COMMUNITIES

"SEC. 1004. (a) New communities consisting of developments, satisfying all other requirements under this title, may be approved under this section by the Secretary for mortgage insurance if they meet the requirements of subsection (b) of this section.

"(b) A development shall be eligible for approval as a new community if the Secretary determines it will, in view of its size and scope, make a substantial Contribution to the sound and economic growth of the area within which it is located in the form of

"(1) substantial economies, made possible through large-scale development, in the provision of improved residential sites;

"(2) adequate housing to be provided for those who would be employed in the community or the surrounding area;

"(3) maximum accessibility from the new residential sites to industrial or other employment centers and commercial, recreational, and cultural facilities in or near the community; and

“(4) maximum accessibility to any major central city in the area".

MORTGAGE AMOUNT AND TERM

SEC. 202. (a) Section 1002 (c) of such Act is amended by striking out "$10,000,000" and inserting in lieu thereof “$25,000,000”.

(b) Section 1002(d)(1) of such Act is amended to read as follows:

"(1) contain repayment provisions satisfactory to the Secretary and have a maturity not to exceed seven years, or such longer maturity as the Secretary deems reasonable (A) in the case of a privately owned system for water or sewerage, and (B) in the case of a new community approved under section 1004;".

ENCOURAGEMENT OF SMALL BUILDERS

SEC. 203. Section 1004 of such Act (redesignated as section 1005) is amended by adding after "broad participation by builders," the words "particularly small builders,".

WATER AND SEWERAGE FACILITIES

SEC. 204. Section 1005, of such Act (redesignated as section 1006) is amended by adding the following: "In the case of a new community approved by the Secretary pursuant to section 1004, the land shall be served, after its development, by

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(a) public systems for water and sewerage which are consistent with other existing or prospective systems within the area; or

"(b) existing privately or cooperatively owned systems (including reasonable extensions thereto) which are approved as adequate by the Secretary and are regulated in a manner acceptable to him; or

"(c) if it is necessary to develop a new system and the Secretary determines that public ownership of such a system is not feasible, an adequate privately or cooperatively owned new system (1) which he finds consistent with other existing or prospective systems within the area; (2) which will be regulated, during the period of such ownership, in a manner acceptable to him with respect to user rates and charges, capital structure, methods of operation, and rate of return; and (3) regarding which he receives assurances, satisfactory to him, with respect to eventual public ownership and operation of the system and with respect to the conditions and terms of any sale or transfer."

FEDERAL NATIONAL MORTGAGE ASSOCIATION SPECIAL ASSISTANCE FOR NEW
COMMUNITIES

SEC. 205. Section 302 (b) of such Act is amended by inserting after "or title VIII," in the proviso the following: "or under title X with respect to a new community approved under section 1004 thereof,".

URBAN PLANNING GRANTS

SEC. 206. Section 701 (a) of the Housing Act of 1954 is amended by inserting the following before the semicolon in paragraph (4): “, or for areas where rapid urbanization is expected to result on land acquired or to be acquired by land development agencies with assistance under section 202(b)(1) of the Housing Amendments of 1955, or on land developed or to be developed as a new community approved under section 1004 of the National Housing Act".

PUBLIC FACILITY LOANS

SEC. 207. Section 202(b) (redesignated below as section 202(c)) of the Housing Amendments of 1955 is amended by adding the following before the period at the end of the second sentence of paragraph (4): ", or (iii) to be provided in connection with the establishment of a new community approved under section 1004 of the National Housing Act".

LOANS TO LAND DEVELOPMENT AGENCIES

SEC. 208. (a) Section 202 of the Housing Amendments of 1955 is amended by inserting after subsection (a) the following new subsection (b)) and redesignating the remaining subsections accordingly:

"(b) (1) In order to encourage and assist in the timely acquisition of open or predominantly undeveloped land to be utilized in connection with the develop

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ment of well-planned residential neighborhoods, subdivisions, and communities, the Secretary is authorized to purchase the securities and obligations of, or make loans to, land development agencies to finance the acquisition of a fee simple or other interest in such land for subsequent sale in accordance with this subsection. A loan under this subsection may be in an amount which shall not exceed the total cost, as approved by the Secretary, of acquiring such interest; shall be reasonably secured; shall be repaid in such manner and within such period, not exceeding fifteen years, as may be determined by the Secretary; and pprove shall bear interest at the rate prescribed for financial assistance extended under subsection (a) of this section. As used in this subsection, 'land development agencies' means public corporations, including municipalities, authorized to carry out, and created or designated by or pursuant to State law for the purpose of mende carrying out, the functions for which financial assistance is available under this subsection.

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"(2) The Secretary shall not extend any financial assistance for the acquisition of land under this subsection unless he determines that (A) the financial assistance applied for is not otherwise available on reasonable terms, (B) the demerdevelopment of a well-planned residential neighborhood, subdivision, or hemunity on such land would be consistent with a comprehensive plan or comevely prehensive planning, meeting criteria established by the Secretary, for the area in which the land is located, and (C) a preliminary development plan for twit the use of the land meets criteria established by the Secretary for such preliminary plans.

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"(3) Land acquired with financial assistance under this subsection shall be disposed of for development in accordance with a current development plan for the land which has been approved by the Secretary as consistent with provisions of the loan agreement, and shall not be sold or otherwise disposed of for less than its fair value for uses in accord with such development plan. Such plan shall, wherever feasible in the light of current conditions, encourage the provision of sites providing a proper balance of types of housing to serve families having a broad range of incomes. The Secretary shall adopt such requirements as he deems necessary to encourage the maintenance of a diversified local homebuilding industry and broad participation by builders, particularly small builders." (b) The proviso in section 203 (a) of the Housing Amendments of 1955 is amended by

(1) striking out "section 202 (a)" and inserting in lieu thereof "section 202(a) and pursuant to section 202(b)"; and

(2) striking out "of such section" and inserting in lieu thereof "of section 202(a)".

TITLE III-URBAN MASS TRANSPORTATION

INCREASE IN GRANT AUTHORIZATION

SEC. 301. (a) Section 4(b) of the Urban Mass Transportation Act of 1964 is amended by striking out "and $150,000,000 for fiscal year 1967" and substituting $150,000,000 for fiscal year 1967; and $95,000,000 for fiscal year 1968”.

(b) Section 6(b) of such Act is amended by striking out "and to $30,000,000 on July 1, 1966" and substituting "$30,000,000 on July 1, 1966; and to $40,000,000 on July 1, 1967".

TITLE IV-GRANTS FOR URBAN INFORMATION CENTERS

FINDINGS AND PURPOSE

SEC. 401. (a) The Congress hereby finds that one of the principal impediments to coordinated and effective Federal, State, and local efforts in solving the problems of metropolitan and other urban areas is the lack of ready availability of information respecting the public and private programs and activities directed to their solution. The Congress further finds that the estabiolishment of centers providing information on urban programs and resources Would increase the effectiveness of present Federal, State, and local efforts to solve urban problems.

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(b) It is the purpose of this title to assist States and metropolian areas in demonstrating the value of improved and increased efforts in assembling and making available information and data on urban needs and assistance programs and activities through centers established for such purpose.

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