(b) Acquisition of real property and demolition or removal of buildings and improvements (and disposition of property) in the urban renewal area (which it is contemplated will be broader than the old project area) where necessary to eliminate unhealthful, insanitary, or unsafe conditions, lessen density, eliminate obsolete or detrimental use, or to otherwise remove or prevent the spread of blight or deterioration;

(c) Installation, construction or reconstruction of streets, utilities, parks, playgrounds and other improvements (which need not be in a slum-clearance area) necessary for carrying out in the urban renewal area objectives of title I in accordance with the urban renewal plan. However, under title I, as amended, the Federal Government would in no way share in the cost of such other facilities and activities connected with the urban renewal program as the actual repair or rehabilitation work on private property, or the enforcement of local codes relating to the use and occupancy of buildings, or relating to their compulsory repair, rehabilitation, removal, or demolition (other than planning therefor in connection with urban renewal projects).

Standards for project eligibility.-Under existing law, to be eligible for financial assistance a project must result either in the elimination of slum housing or in the production of good housing in a well-planned, residential neighborhood. Thus, under the provisions of existing law, financial assistance may be made available for clearing a slum area, or a blighted residential area, whether it is to be redeveloped for either residential use, or commercial or industrial use, or a combination of such uses. However, if the area is not presently predominantly residential in character, financial assistance may be made available only if the area is to be redeveloped for predominantly residential uses.

The bill as passed by the House deleted these existing provisions of law and substituted provisions which would have established as the general criteria of eligibility the achievement of "sound community objectives for the establishment and preservation of well-planned residential neighborhoods." Your committee felt that such general criteria were too vague and could be construed in such a way as to permit a major change in the basic objective of the existing law. Accordingly, your committee substituted a provision (included in sec. 311 of the bill) designed to retain essentially the same provision of existing law in this respect and thus assure that the principal and primary purpose of the existing law would be retained. The provision substituted by your committee requires that no assistance may be made available for any project involving slum clearance and redevelopment of an area which is not clearly predominantly residential in character unless such area is to be redeveloped for predominantly residential uses, except that, where such an area which is not predominantly residential in character contains a substantial number of slum, blighted, deteriorated, or deteriorating dwellings or other living accommodations, the elimination of which would tend to promote the public health, safety, and welfare in the locality involved and such area is not appropriate for redevelopment for predominantly residential uses, the Administrator may extend financial assistance for such a project. However, the aggregate of the capital grants made with respect to such projects is limited to 10 percent of the total amount of capital grants authorized by this title.

Local public agency. -Because of the broadened scope of the activities to be carried on under an urban renewal project, some of the actions to be performed by the local community will, in the case of many cities, fall within the jurisdiction both of city departments and of local redevelopment agencies having a separate corporate existence. It may therefore be appropriate to have a city and a local redevelopment agency join as parties to a contract for Federal aid under the title. In order to make it clear that, in such cases, 2 or more agencies may jointly undertake projects and may obtain Federal financial assistance therefor, the definition of "local public agency" has been changed so that it may include 2 or more of the entities which are listed under the present definition of local public agency. Section 312. Savings provision

This section of the bill is a savings provision to permit, after the enactment of the amendments proposed in this title, the completion, under present statutory authority, of projects initiated, or under contract for plans and surveys, prior to the date of legal effectiveness of the proposed amendments of title I of the Housing Act of 1949, as amended. The enactment of this section is necessary (a) to obviate difficult. administrative problems involved in the transition from the present more limited slum clearance and urban redevelopment program to the broader urban renewal program and (b) to recognize the Federal Government's obligation to cities and other public authorities which in good faith have already entered into contracts for slum clearance and urban redevelopment projects on the basis of title I prior to the major amendments provided in this bill and which will have projects at various stages of advancement when the amendments made by this bill become effective.

Section 313. Repeal of Appropriation Act provisos

This section of the bill would repeal the provisos contained in the First Independent Offices Appropriation Act, 1954, which require (a) the Administrator, before approving a slum-clearance program, to consider the efforts of localities to enforce local codes relating to health, sanitation, and safety for dwellings, and the feasibility of achieving slum-clearance objectives through rehabilitation of existing dwellings and areas; and (b) that the authority under title I of the National Housing Act for FHA insurance of loans for the repair and alteration of structures shall be used to the utmost in connection with rehabilitation needs. The effect of these provisos is now incorporated in title I of the Housing Act of 1949, as it would be amended by this title.

Section 314. Grants to localities for developing slum prevention and elimination techniques

This section of the bill would authorize special grants to localities to assist them in developing, testing, and reporting on improved techniques for preventing and eliminating slums and urban blight. Grants would be limited to two-thirds of the cost of the undertakings. Aggregate grants under this section would be limited to $5 million, to be obtained from the authorization for other grants authorized by title I of the Housing Act of 1949.

Sections 315 and 316. District of Columbia participation in urban renewal

These sections of the bill would make technical changes in the District of Columbia Redevelopment Act of 1945, as amended, which would extend that act to urban renewal activities of the type which could be assisted under the amendments of title I of the Housing Act of 1949 contained in the bill. They would thus be enabling provisions for the District of Columbia with respect to urban renewal activities. These provisions of the bill also make it clear that the District Commissioners, rather than the District of Columbia Redevelopment Land Agency, have the responsibility for requesting necessary funds to prepare the "workable program" required of communities to make them eligible for urban renewal assistance under that act. This would be consistent with other similar requests for funds. Also, the National Capital Planning Commission would be specifically named as one of the agencies in the District of Columbia which would be authorized to exercise local powers with respect to urban renewal.

Under this section of the bill, it is intended that the National Capital Planning Commission will continue to have the rights and powers pertaining to redevelopment as authorized by the District of Columbia Redevelopment Act of 1945, as amended, and in addition the Planning Commission will have the same rights and powers in connection with both slum clearance and urban renewal.

By repealing limitations in existing law, the appropriate officials of the District of Columbia would be permitted to decide whether redevelopment projects should be undertaken in the Barry Farms and Marshall Heights areas of the District of Columbia.

TITLE IV-LOW-RENT PUBLIC HOUSING

Section 401. Restoration of Housing Act of 1949 low-rent public housing program-preferences for admission to public housing

This section would provide for continuation of the low-rent public housing program at the rate authorized in the Housing Act of 1949, as discussed in the introductory statement of this report. Although this act has not been amended to restrict the program, the provisions of other laws have limited the number of units which could be constructed and have prohibited new contracts for Federal asistance to such housing. The total program authorized by the act is 810,000 units.

Of the total of 810,000 units authorized by the Housing Act of 1949, 192,633 will have been authorized for construction by June 30, 1954, leaving a balance of 617,367. Under the bill, these remaining 617,367 could be placed under construction in future years, with the President controlling, through the budget process, the number of these units to be placed under construction in any fiscal year, subject, of course, to the limitation contained in the Housing Act of 1949 that in no event shall the commencement of the construction of more than 200,000 units be permitted in any fiscal year.

This section would also amend the preference provisions with respect to admission to low-rent public housing. The existing preference provisions for admission to low-rent housing provide a first preference only to families which are to be displaced by a low-rent project or by

a public slum clearance or redevelopment project, or which were so displaced within 3 years prior to making application for admission. The section would extend this preference provision to families which are to be displaced through other public actions. Thus, the same preference would be applicable to families who are to be displaced because a building, health, sanitary, or other code relating to housing standards prohibits the family from living in that particular dwelling for reasons such as overcrowding or failure of the dwelling to meet minimum standards of light, air, sanitation, etc.; or through closing of the dwelling through public action because it is unfit; or through demolition of the dwelling by public action for the construction or widening of a highway or bridge even though not connected with redevelopment or urban renewal. The preferences would also be applicable to families who are required to move because they cannot afford the increased rent caused by improvement of a dwelling unit to bring it into compliance with housing standards prescribed by laws or codes. In order to permit proper programing of relocation activities, local housing authorities are authorized to grant prior preference as among projects or actions entitled to preference. Veterans would continue to be preferred within each preference group.

This section would also extend to March 1, 1959, the present provision in the United States Housing Act of 1937, as amended, waiving, in the case of veterans, the requirement that applicants for admission to a low-rent public housing project must have lived in substandard housing. This provision in the 1937 act expired March

1, 1954.

Section 402. Payments in lieu of taxes

This section is designed to make mandatory on a local housing authority any payments in lieu of taxes stipulated in its cooperation agreement with the local governing body. This agreement would provide for payments in lieu of taxes of 10 percent of shelter rents unless State law prescribes a lesser amount or unless the local governing body agrees to a lesser amount. The agreement would also provide for offsetting against such payments any claims by the public housing agency against local bodies due to their failure to meet their obligations under the agreement. However, in any case where it appears at the time the cooperation agreement is entered into that tax exemption, less a 10-percent payment in lieu of taxes, would not result in a local contribution to the project equal to at least 20 percent of the Federal contributions, the payments in lieu of taxes to be provided in the agreement would be limited to an amount, if any, determined year by year which will not reduce the local contributions below such 20 percent.

The section also provides that the localities may elect, if they so desire and if permitted by State law, to make the project subject to full taxes on condition that the locality pays to the project in cash. the difference between full taxes and 10 percent of shelter rents but not less than 20 percent of the Federal contribution to the project.

In either case the local public housing authority must inform the local governing body, before the Federal annual contributions contract is executed, its estimate (in the case of a tax-exempt project) of the annual amounts to be paid in lieu of taxes and of the amount of taxes

which would be levied if the property were privately owned, or (where the project is taxed) the estimated amount of the local cash contribution. Actual figures must thereafter be published in the local authority's annual report.

This section also permits existing annual contributions contracts to be amended in accordance with the above provisions and deletes obsolete provisions.

Section 403. Self-liquidation of public housing

This section is designed to make the federally assisted public housing program self-liquidating, so far as possible. It provides that after the obligations for which annual contributions are pledged are paid in full, receipts in excess of necessary expenses of administration of the project, and of reasonable reserves therefor, must be paid to the Federal Government, and to local public bodies which have contributed to the project in the form of tax exemption or otherwise, in proportion to the aggregate contribution which the Government and such local bodies have each made to the project, but not to exceed their respective contributions. Meanwhile, only debts for necessary expenditures of the project can be incurred by the local housing authority.

In the event the project is sold at any time (either before or after its cost has been liquidated), it must be sold to the highest bidder after advertising, or at fair market value; and the proceeds of such sale together with any reserves held in connection with the project, after all outstanding debts in respect to the project have been paid, must be paid to the Government and to the local public bodies in a proportion based on the aggregate contribution which the Government and the local bodies have made to the project, but not to exceed their respective contributions.

This section is a recognition of the fact that the useful life of wellconstructed low-rent housing extends far beyond the life of the bonds and Federal contracts relating to the project, and that it is equitable (whether the project is continued in low-rent use or, if no longer needed for that purpose, is sold or rented for other than low-rent use) that any rents or proceeds therefrom should be returned to the Government and to the local community in proportion and to the extent of their respective contributions to the project.

Section 404. Repeal of labor reporting requirements

This section would repeal section 16 (6) of the United States Housing Act of 1937, which requires certain reports to the Department of Labor which the Department no longer desires. Section 16 (6) requires contractors engaged on any low-rent housing project to make monthly reports to the Secretary of Labor concerning the number of persons on their payrolls, total man-hours worked, itemized expenditures for materials, and the names and addresses of all sub

contractors.

Section 405. Requirements of tenants of low-rent public housing—

This section would add provisions to the United States Housing Act of 1937, as amended, which would require that all tenants of lowrent public housing shall be citizens of the United States, or persons