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The Secretary of HUD is authorized to guarantee obligations issued on the bond market by private developers to help finance the land acquisition and land development costs of new communities.

The obligations guaranteed for a new community may not exceed the lesser of (a) 80 percent of the Secretary's estimate of the value of the property upon completion of the land development, or (b) the sum of 75 percent of the Secretary's estimate of the value of the land before development plus 90 percent of his estimate of the actual cost of the land development, or (c) $50 million outstanding.

The aggregate amount of outstanding principal obligations that may be guaranteed is limited to $250 million.

To be eligible for a guarantee or commitment to guarantee the Secretary must determine that:

1. The proposed new community will be economically feasible and will contribute to the orderly development of the area of which it is a part;

2. There is a practicable plan for financing the new community and for marketing the land which represents an acceptable financial risk to the United States;

3. There is a sound internal development plan for the new community which has received all required State or local government approvals, and is acceptable to the Secretary as contributing to good living conditions in the area and including a proper balance of housing for families of low and moderate income; and

4. The internal development plan is consistent with comprehensive planning for the area which meets criteria established by the Secretary.

The Secretary is authorized to establish a revolving fund for the guarantee program which will be comprised of (1) receipts from fees and charges, (2) other receipts, and (3) such sums, authorized to be appropriated, as may be required.

The Secretary is also authorized to make supplementary grants to State and local public bodies and agencies for water and sewer facilities and open space assisted by grants under the Housing and Urban Development Act of 1965 or the Consolidated Farmers' Home Administration Act, and the Housing Act of 1961. The Secretary must determine that the supplementary grants are desirable for carrying out a new community development project, and that a substantial number of housing units for low and moderate income persons is to be made. available through the project.

The supplementary grant cannot exceed 20 percent of the cost of the facility and the total Federal grant is limited to 80 percent of facility cost. Appropriations for supplementary grants are authorized up to $5 million for fiscal year 1969, and up to $25 million for fiscal year 1970.

TITLE V-URBAN RENEWAL

Neighborhood development programs

The Secretary of HUD is authorized to provide financial assistance for neighborhood development programs, a new approach to urban renewal which will facilitate more rapid rehabilitation and redevelopment of blighted areas on an effective scale. A neighborhood development program consists of urban renewal project undertakings and

activities in one or more urban renewal areas that are planned and carried out on the basis of annual increments. Financing is based on the amount of loan and grant funds needed to carry out the activities planned during a 12-month period in each of the urban renewal areas contained in a community's program. If funds are available and a community's program is acceptable to the Secretary, a community can receive financial assistance based on its need for subsequent annual increments of the program.

The Redevelopment Land Agency of the District of Columbia is given authority to plan and undertake neighborhood development

programs.

Increase in authorization of grants

The authorization for urban renewal grants is increased by $1.4 billion on July 1, 1969. In addition, the authorization for urban renewal grants for projects in model cities areas is increased by $350 million.

Rehabilitation grants

The limit on the amount of a rehabilitation grant to a low-income homeowner is increased from $1,500 to $3,000 and the grant is made available for rehabilitation of real property in addition to the dwelling itself.

Rehabilitation grants are authorized to be made to low-income homeowners for repairs and improvements of dwellings outside urban renewal and code enforcement areas:

1. Where the dwellings are in areas certified by the local governing body as containing a substantial number of structures in need of rehabilitation,

2. If the locality has in effect a workable program for community improvement, and

3. The area is definitely planned for rehabilitation or code enforcement within a reasonable time, and the repairs to be assisted are consistent with the plan for rehabilitation or code enforcement.

The Secretary of HUD is also authorized to make rehabilitation grants to low-income homeowners whose property has been determined, after an inspection pursuant to an approved statewide property insurance plan, to be uninsurable because of physical hazards. The grant may be made only to rehabilitate the property to the extent that the Secretary determines necessary to make it meet reasonable underwriting standards imposed by the statewide plan. Rehabilitation loans

The rehabilitation loan program has been broadened in the same manner as the rehabilitation grant program with respect to properties located outside urban renewal and code enforcement areas and those found to be uninsurable.

The amount authorized to be appropriated for each fiscal year is increased from $100 million to $150 million and the program is extended to June 30, 1973 (in lieu of the previous expiration date of October 1, 1969).

Eligibility for residential rehabilitation loans is limited to persons whose annual income is within the locally applicable income limits for the section 221 (d) (3) below-market interest rate program (but projects now underway are exempted).

Limit on LPA rehabilitation in urban renewal areas

The previous limits on the acquisition and rehabilitation of residential properties by local renewal agencies are removed. Under prior law, an LPA could acquire and rehabilitate for demonstration purposes no more than 100 units or 5 percent of the total residential units in an urban renewal area, whichever is lesser.

Disposition of property for low and moderate income housing

Land in an urban renewal area is authorized to be leased (in addition to being sold as previously provided) for low or moderate income housing at a price consistent with the use for that purpose. A builder is permitted to purchase the land at the write-down price for low or moderate income sales housing. Under this provision land can be made available at the write-down price for housing assisted under the new interest reduction payment programs authorized by theand for homeownership and multifamily housing.

Grants for low- and moderate-income housing in open-land projects

Grants are authorized for open-land urban renewal projects where the land is to be disposed of for low- and moderate-income housing. Previously, open-land projects were not eligible for grants. The grant may be for two-thirds of the difference between the proceeds from any land disposed of at its value for low- or moderate-income housing and the proceeds which would have been realized if the land had been disposed of at its fair value without regard to its special use.

Demolition grants.

The demolition grant program is expanded to permit grants for the demolition of structures which are rat harborages or potential rat harborages.

Use of air-rights sites for educational facilities

Air-rights urban renewal projects, and the construction of necessary foundations and platforms in any type project, are authorized for the development of educational facilities. As in the case of industrial development, an air-rights project and the construction of foundations and platforms would only be available for educational facilities if the area is unsuitable for low- or moderate-income housing purposes. Low- and moderate-income housing in residential urban renewal areas A majority of the housing units provided in all of the approved urban renewal projects in any community which are to be redeveloped for predominantly residential uses and which receive Federal recognition after August 1, 1968, must be for low- and moderate-income families or individuals, with at least 20 percent of such total for lowincome families or individuals. The Secretary may waive the 20percent requirement to the extent that the units are not needed in the community.

Workable program requirements in case of Indian tribes

An additional period of time, until January 1, 1970, is provided for Indian tribes, bands, or nations to adopt and carry out minimumstandards housing codes for workable program certification.

Interim assistance for blighted areas

The Secretary of HUD is authorized to contract to make grants aggregating up to $15 million a year to cities or counties to assist them

in taking interim steps to alleviate harmful conditions in slum or blighted areas of communities which are planned for substantial clearance, rehabilitation, or federally assisted code enforcement in the near future, but which need some immediate public action until permanent action can be taken.

The Secretary is required to encourage employment of unemployed or underemployed residents of an assisted area in carrying out the activities to be assisted.

Grants may not exceed two-thirds of the cost of planning and carrying out an interim assistance program, except that three-fourths grants can be made to any community with a population of 50,000 or less.

A community has to have an approved workable program for community improvements to qualify for assistance, and relocation assistance and payments will be available.

Relocation payments

Relocation adjustment payments are broadened to permit payments of up to $500 per year, for a 2-year period. Such payments have been heretofore limited to a maximum of $500 based on a 1-year period payable over a 5-month period.

A new payment is authorized for a displaced owner-occupant of residential property to enable him to purchase a replacement dwelling. The payment, which cannot exceed $5,000, is the difference between the average price for an adequate replacement home and the acquisition price of his former home.

TITLE VI—URBAN PLANNING AND FACILITIES

Comprehensive planning

The section 701 planning assistance grant program is extensively revised. The Secretary of HUD is now authorized to make comprehensive planning grants to State planning agencies for assistance to "district" planning agencies for rural and other nonmetropolitan areas. Consultation with the Secretary of Agriculture is required prior to approval of any district planning grants. The Secretary of Agriculture and, when appropriate, the Secretary of Commerce, may provide technical assistance in connection with the establishment of districts and the carrying out of planning by them. Such district planning may not be aimed at assisting businesses to relocate from one area to another.

Other new provisions authorize direct planning grants to Indian tribal planning councils or other bodies for planning on Indian reservations; to regional and district councils of government as well as those organized on a metropolitan basis; to regional commissions and economic development districts established under the Public Works and Economic Development Act of 1965; to cities, without regard to population, within metropolitan areas for planning which is part of metropolitan planning; and to official government planning agencies for areas where rapid urbanization is expected as a result of a new community development assisted under title IV of this act. The Secretary is required to consult with the Secretary of Commerce before making any planning grant which includes any part of an economic development district.

The definition of comprehensive planning is broadened to include planning for the provision of governmental services and for the development and utilization of human and natural resources. The inclusion of a housing element is required as part of the preparation of comprehensive land-use plans. The use of private consultants, where their professional services are deemed appropriate by the assisted governments, is added to the stated purposes of the program. The authorization of appropriations for grants is increased by $35 million for fiscal year 1969 (including $20 million earmarked for district planning) and by $125 million (including $10 million for district planning) beginning fiscal year 1970. It is also provided that an additional $10 million of section 701 appropriations is to be available for study, research, and demonstration projects.

Planned areawide development

Supplementary grants (designed to encourage areawide planning) are authorized for federally assisted projects in all multijurisdictional areas (not just metropolitan areas as previously provided) such as the rural planning districts proposed to be assisted with comprehensive planning grants under the comprehensive planning provisions of the law. Unused authorizations for appropriations for supplementary grants for fiscal year 1967 and 1968 are made available through fiscal year 1970.

Advance acquisition of land

The advance acquisition of land program is extensively revised. Among the more significant changes is a broadening of the definition of eligible land from land "planned to be utilized in connection with the future construction of public works and facilities" to "land planned to be utilized in the future for public purposes." Grants can also be made for the imputed interest cost when a public body does not use borrowed funds to acquire the land. Authority is given the Secretary to extend the requirement that the land must be used for its proposed purpose within 5 years if he deems a longer period necessary due to unusual circumstances and so advises the Banking and Čurrency Committees of the Congress. It is also provided that assistance under this program will not render a project ineligible for other Federal assistance programs and that the cost of land acquired with assistance under this program will not be an ineligible project cost in such other programs.

Water and sewer facilities program

The interim planning requirements under the basic water and sewer facilities grant program is extended to October 1, 1969. It is also provided that in administering the program, to the greatest extent practicable, new job opportunities shall be provided for unemployed or underemployed persons.

Authorizations water and sewer, neighborhood facilities, and advance acquisition of land programs

The authorization for appropriations for these three programs is extended to permit the appropriation, for fiscal year 1970, of any funds authorized but not appropriated prior to that time. Also, an additional $150 million for fiscal year 1969 and $115 million for fiscal year 1970 are authorized to be appropriated for the water and sewer facilities grant program.

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