HomeMy WebLinkAbout1974-09-10 ResolutionCITY
WHEREAS, the City Council of the City of Iowa City, Iowa, acting as
the Local Public Agency (LPA) has advertised the sale of certain land
within the boundaries of City -University Project I Urban Renewal Project,
Iowa R-14; hereinafter referred to as the "Project", and;
WHEREAS, the LPA received a bid on October 18, 1973 and;
WHEREAS, the City Council of the City of Iowa City, Iowa, has
entered into an agreement with a developer for the redevelopment of said
project lands, said agreement dated, March 19, 1974, and amended on May 7,
1974, and July 31, 1974, and;
WHEREAS, that agreement calls for the redevelopment of certain
project lands after March, 1976, and;
WHEREAS, the Project is scheduled to close out by March, 1976, and;
WHEREAS, the City Council of the City of Iowa City, Iowa, is aware
of the responsibilities of the LPA under a certain Loan and Grant
Contract between the City of Iowa City, Iowa, and the United States of
America, said contract dated September 2, 1970, and subsequently amended,
and;
WHEREAS, the City Council of the City of Iowa City, Iowa, is aware
of the responsibilities of the LPA with regard to the developer's con-
struction plans, changes, thereto and approvals thereof, and the require-
ment of the redeveloper to provide evidence of equity capital and
mortgage financing, all as set forth in Sections 301, 302, 303, and
304 of Part II of the aforementioned agreement between the City of Iowa
City, Iowa, and the developer,
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA'
CITY, IOWA, AS FOLLOWS:
1. The City Council of the City of Iowa City, Iowa, recognizes, under-
stands and accepts the responsibilities of the LPA in carrying out the
objectives of the Urban Renewal Plan for the Project after March, 1976,
or such later date to which the aforementioned Loan and Grant Contract
may be mutually extended.
2. The City Council of the City of Iowa City, Iowa, recognizes, under-
stands and accepts the responsibilities of the LPA as set forth in
Sections 301, through 304, inclusive, of Part II of the agreement for
redevelopment with the developer.
It was moved by Brandt and seconded by white that
the Resolution as read e adopted and upon roll call there were:
AYES: NAYS: ABSENT:
X
F7
X
X
Passed and
ATTEST:
BRANDT
CZARNECKI
X DAVIDSEN
DEPROSSE
WHITE
roved this 10th
City Clerk
day of September
1974
RESOLUTION AUTHORIZING AMENDMENT
TO URBAN RENEWAL CONTRACT
WITH OLD CAPITOL ASSOCIATES
WHEREAS, the City of Iowa City, Iowa, acting as Local Public
Agency, in connection with Urban Renewal Project R-14 has entered
into a contract for the sale and development of certain land in the
Urban Renewal Project with Old Capitol Associates, a partnership,
and,
WHEREAS, the federal department of Housing and Urban Develop-
ment has required that the Performance Deposit described in Section
3 of the contract be held by the City until construction is
commenced on the last parcel of land to be developed by Old
Capitol Associates, thus necessitating a change to Section 3, and;
WHEREAS, Schedule F of Part I of the contract describes certain
property to be conveyed to Old Capitol Associates by the City as
being 320 feet instead of 310 feet.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY,
IOWA, ACTING AS Local Public Agency, that the attached memorandum
agreement amending the redevelopment contract between the City of
Iowa City and Old Capitol Associates which is attached hereto be
and the same is hereby approved and the Mayor and City Clerk are
authorized to execute the same on behalf of the City of Iowa City.
It was moved by
White
Brandt
and seconded by
that the resolution as read be adopted, and
upon roll call there were:
AYES:
Brandt X
Czarnecki X
Davidsen
deProsse X
White X
NAYS:
ABSENT:
Passed and approved this 10th day of
ATTEST:
City Clerk
September
, 1974.
MEMORANDUM AGREEMENT
THIRD ;ADDENDUM TO PART I OF
CONTRACT FOR SALE OF.`LAND FOR PRIVATE REDEVELOPMENT
BY AND BETWEEN
OLD CAPITOL ASSOCIATES, A PARTNERSHIP
AND
THE CITY OF IOWA CITY, IOWA, A -MUNICIPAL CORPORATION
The following amendments and modifications are hereby made in
the terms, covenants and conditions forming Part I of an agreement
by and between the City of Iowa City, Iowa and Old Capitol Associates:
1. Section 3 of Part I is amended by deleting from subparagraph
(d), the words or upon termination as to a specific parcel, ..."
from the second and third lines thereof, and, deleting the words
. or the appropriate portions thereof ..." from the third line
thereof, and, deleting the words the pro rata portion of "
from the sixth line thereof, and, deleting the words "... attribut-
able to each parcel to which the following conditions apply ..."
from the seventh line thereof, and, deleting the words " ... of the
following: ..." from the eighth line thereof, and, inserting after
the word "... return in the sixth line thereof, the words
if ... subject to the provisions of this Section ...", and, inserting
after the word "... Agency ..." in the eighth line thereof, the
words, "... for the last parcel of land upon which construction is
to take place according to Schedule D, the following: ...", all, so
that subparagraph (d) reads as follows:
(d) Return to Redeveloper. Upon termination of the
of the Agreement as provided in Section 702 hereof,
the Deposit shall be returned to the Redeveloper by
the Agency as provided in Section 702 hereof. If the
Agreement shall not have been theretofore terminated
and if no cause for termination then exists, the Agency
shall return, subject to the provision of this Section,
the deposit to the Redeveloper upon receipt by the Agency
for the last parcel of land upon which construction is
to take place according to Schedule D. the following:
2. Schedule F to Part I is amended by changing subparagraph 3 by
changing the dimensions of Block 101 therein described, from the north
320 feet to the north '310 feet.
These substituted provisions together with the remaining unchanged
portions of the March 19, 1974, contract, constitute the Agreement of
the parties.
IN WITNESS WHEREOF, on this 10th day of September 1974, the Agency
has caused this Third Addendum to—Vart I to be duly executed in its
name and behalf, by its Mayor, and its seal to be hereunto duly affixed
and attested by its City Clerk, and the Redeveloper has caused this
Addendum to be duly executed in its name and behalf by its principals
below.
CITY OF IOWA CITY, IOWA
By:
ATT T:
City Cler
OLD CAPITOL ASSOCIATES
By Old Capitol Business Center Company
(an Iowa Limited Partnership) a partner
By:
Vril eaa Hieronymus,
Hi ron, Inc., an Iowa
By:
es i.den
Corporation
Jay'L44 Oehler, President
Investments Incorporated,
an Iowa Corporation
By Meadow ink, I orporated
(an Indi na Co oration) a p ner
By:
Ivan imme , resi ent
STATE OF IOWA )
) ss.
JOHNSON COUNTY )
On this /O day of September, 1974, before me personally appeared
Wilfreda Hieronymus, Jay C. Oehler, and Ivan Himmel, to me personally
known, who, being by me duly sworn, did say that Wilfreda Hieronymus
is President of Hieron, Inc., that Jay C. Oehler is President of
Investments Incorporated and that Ivan Himmel is President of Meadow
Link, Incorporated, members of the partnership of Old Capitol Asso-
ciates, and that the foregoing agreement was executed on hehalf of
Old Capitol Associates as the voluntary act and deed of said Old
Capitol Associates and that they had the authority to execute the same.
otary
r.�.
of Iowa
and for the State
WHETS, the Engineering. Department has recamended that the im-
provement covering the construction Of Division II, Item 2 for furnish-
ing equipment for 1974 Burlington Street Traffic Signal Program
as included in a contract between the City of Iowa City and
Minnesota Mining & Mfg. Co.Of St. Paul, Minnestoa
dated 5/21/74
, be accepted,
AND theS, the Council finds the improvement is in place and does
comply withth the requirements for such improvements,
AND WHEREAS, maintenance bonds have been filed,
NOW THEREMPE., BE IT RESOLVED by the City Council of Iowa City, Iowa,
that said improvements be hereby accepted by the City of Iowa City
Iowa.
It was moved by
Brandt
and
seconded by
White
that the reolution as
read be adopted,
and upon
roll call
there were:
AYES: NAYS: ABSENT:
Brandt X
Czarnecki X
Davidsen x
deProsse X
White X
Passed and approved this 1 ()th day Of SPntemht-r i 19 74
ENGINEER'S REPORT
FURNISHING OF EQUIPMENT FOR THE 1974 BURLINGTON STREET
TRAFFIC SIGNAL PROGRAM
September 5, 1974
To the Honorable Mayor and City Council
Iowa City
Iowa
Honorable Mayor and Councilpersons:
I hereby certify that the traffic signal equipment, as supplied in
accordance with a contract between the City of Iowa City and Minnesota
Mining 4 Manufacturing Company of St. Paul, Minnesota, dated May 21, 1974,
has been received from said supplier in accordance with the plans and specifications
governing said equipment.
I further certify that the traffic signal equipment, as furnished, included
the following quantities:
ITEM
DESCRIPTION
QUANTITY
1. 12" One -Way, 3 -Section, Optically
Programmed Signal Head with 12"
Red, 12" Amber Left Arrow, 12"
Green Left Arrow
3M Co., Visual Products Division
Model M 131-334Y with Backplates
and Cutaway Visors 10
GRB/mjc
TOTAL CONTRACT AMOUNT
TOTAL PREVIOUSLY PAID
TOTAL DUE CONTRACTOR
Respectfully submitted,
UNIT
PRICE AMOUNT
$542.00 $ 5,420.00
$ 5,420.00
$ 5,420.00
Ge rge R: Bonnett, P.E.
City Engineer/Deputy Director of Public Works
1973 PAVING ASSESSMENT PROGRAM NO. 2
WWFFM, the Engineering. Department has recannended that the im-
Provement covering the OOnstructiOn of the 1973 Paving Assessment
Program No. 2,
as included in a contract between the City of Iowa City and
Metro Pavers, Inc. of Iowa City, Iowa
dated September 4, 1973 , be accepted,
AND MEREAS, the Council finds the inprovenent is in place and does
amply with the requirements for such inprovements,
AND WHEFEMF maintenance bonds have been filed,
NOW TSEFtEEDRE, BE IT RESOLVED by the City Council of Iowa City, Iowa,
that said improvements be hereby accepted by the City of Iowa City, Iowa.
It was moved by and seconded by
that the reolution as read be adopted, and upon roll call
AYES:
Brandt X
Czarnecki X
Davidsen
deProsse X
White X
there were :
NAYS: ABSENT:
X
Passed and approved this 1 nth day of s P = t em h e r , 19—U—.
ATTEST:
City -Clerk
To the Honorable Mayor and City Council
Iowa City
Iowa
Honorable Mayor and Councilpersons:
I hereby certify that the improvements, as constructed in
a contract between the City of Iowa City and Metro Pavers, Inc.,
of Iowa City, Iowa, dated September 4, 1973, has been completed
by said contractor in substantial accordance with the plans and
specifications governing said improvements.
I further certify that the improvements, as constructed,
included the following amounts:
TOTAL CONTRACT AMOUNT
TOTAL PREVIOUSLY PAID
GRB/mj c
$ 289,341.69
271,861.82
TOTAL DUE CONTRACTOR $ 172479.87
Respectfully submitted,
George'R. Bonnett, P.E.
Deputy Director/City Engineer
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL.
1. That the Mayor and Cit Clerk are hereby authoriz d and directed
International Association of Fire Fighters
to execute the Agreement with (IAFF x(610)
2. That the City Clerk shall furnish copies of said Agreement to any
citizen requesting some.
It was moved by deProsse and seconded by White that
the Resolution be adopted. and upon roll call there were;
AYES: NAYS: ABSENT:
Brandt
'' • a
Czarnecki
Passed and approved this 10th day of September 19 74
41) i,
ATTEST: �'—
City Clerk
This Agreement entered into by and between the City of Iowa City, Iowa, a
municipal corporation duly authorized, organized and existing pursuant to the laws
of the State of Iowa, hereinafter called the City and the International Association
of Fire Fighters (IAFF), Local 4610, an International Union local chapter duly
organized and existing and empowered to act pursuant to the .laws of the State of Iowa,
doing business in Iowa City, Iowa, hereinafter called the Union.
WHEREAS, pursuant to agreement between the parties an election was held on
August 15, 1974, of eligible Fire Department employees of the City of Iowa City as
determined by the parties to demonstrate whether or not the majority of eligible
employees wished to have the Union represent them as bargaining agent for collective
bargaining, and,
WHEREAS, the election results showed a majority of said employees wished to be
represented by the Union, and,
WHEREAS, there are no ordinances, statutes, rules or regulations or guidelines
establishing any procedures, methods or mechanics for negotiation or collective bar-
gaining in the State of Iowa at this time and the parties deem it in the public interest
and in the interest of the employees of the City and the City and the Union, that the
parties set down by agreement the manner and method of conducting the negotiations and
the rules therefore in order to avoid any disputes relating to the conduct of the
election.
NOW THEREFORE BE IT AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS:
1. Recognition. The City of Iowa City recognizes the International Association
of Fire Fighters, Local 4610 as the exclusive representative of per:n.incnt, full time,
bona fide City of Iowa City Fire Fighters, EXCLUDING the Fire Chief, Fire Training
Officer, Fire Marshall, Battalion Chiefs, and any other such individuals who may in
the future become confidential, administrative, supervisory, and/or part-time (less
than 'i time) employees. The bargaining unit shall be as set forth in paragraph 15.
2. First Session. That the City and the Union shall commence negotiations on
or before September 15, 1974, at a time and place to be determined by the parties.
3. Negotiating Teams. That the City and the Union shall each be entitled to a
negotiating team of five (5) members each at each session. Thatt the members selected
shall constitute the negotiations team and no substitutions or change, can be made in
the membership thereof unless a person is permanently unable to serve and then a sub-
stitution may be made upon twenty-four (24) hours notice. No team is required to have
its five, (5) members at each session.
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AGREEMENT
This Agreement entered into by and between the City of Iowa City, Iowa, a
municipal corporation duly authorized, organized and existing pursuant to the laws
of the State of Iowa, hereinafter called the City and the International Association
of Fire Fighters (IAFF), Local #=610, an International Union local chapter duly
organized and existing and empowered to act pursuant to the .laws of the State of Iowa,
doing business in Iowa City, Iowa, hereinafter called the Union.
W11FREAS, pursuant to agreement between the parties an election was held on
August 15, 1974, of eligible Fire Department employees of the City of -Iowa City as
determined by the parties to demonstrate whether or not the majority of eligible
employees wished to have the Union represent them as bargaining agent for collective
bargaining, and,
WHEREAS, the election results showed a majority of said emoloyees wished to be
represented by the Union, and,
WHEREAS, there are no ordinances, statutes, rules or regulations or guidelines
establishing any procedures, methods or mechanics for negotiation or collective bar-
gaining in the State of Iowa at this time and the parties deem it in the public interest
and in the interest of the employees of the City and the City and the union, that the
parties a:et down by agreement the manner and method of conducting the negotiations and
the rules therefore in order to avoid any disputes relating to the conduct of the
election.
NOW THEREFORE BE IT AGREED BY AND BETWEEN THE PARTIES AS FOLLOW:.:
1. Recognition. The City of Iowa City recognizes the Internal_i.onal Association
of Fir-- Fighters, Local 4610 as the exclusive representative o f peg ;;,,, :en t, full time,
bona fide City of Iowa City Fire Fighters, EXCLUDING the Fire Chief, Fire Training
Officer, Fire Marshall, Battalion Chiefs, and any other such individuals who may in
the future become confidential, administrative, supervisory, and/or part-time (less
than 'j time) employees. The bargaining unit shall be as set forth :in paragraph 15.
2. First Session. That the City and the Union shall conunenc:e negotiations on
or before September 15, 1974, at a time and place to be determined by the parties.
3. Negotiatinq Teams. That the City and the Union shall each be entitled to a
nc•7otiating team of five (5) memb=ers each at each session. Thrct the members selected
nhaLl. constitute the negotiations team and no substitutions or changer: e:_,n be made in
the m•iTtbership thereof unless a person is permanently unable to serve and then a sub-
stit"tion may be made upon twenty-four (24) hours notice. Nn team is required to have
its five (5) members at each session.
C
For all sessions held during working hours, all Union members employed by the
City shall have time off subject to availability as determined by their supervisor,
but said time off shall not be withheld unreasonably. One employee member on the
Union team shall receive regular wages at each session held during working hours, the
one to be selected by the Union team at the beginning of each session. One other
employee may elect to use compensatory time of annual leave, if available, at the
employee's option.
4. Chief Speaker. Pach of the parties shall have a chief. speaker for their team.
Said chief speaker so designated shall be in charge of each nc,clotiating team and
shall be responsible for all conduct of the negotiations of hi:; team and the conduct
of his or her team members. The chief speakers shall be the chairpersons of the
negotiating sessions and f1hal.l have equal rights as such. Union negotiators and City
negotiators shall have equal status at the bargaining table.
Any statements or recormnendations or reports or disclosuc :_; ul any matters dis-
cussed in the negotiations allowed by this Agreement shall be made by the chief speaker
for that team and no other member of either negotiating team may make any statements,
recommendations or reports or disclosure of any matters discussed in the negotiations
allowed by this Agreement. If any member of either team shall make any statement,
recommendation, report or disclosure contrary to this paragraph he or she shall be
removed from the negotiating team immediately and shall not be allowed to participate
in the negotiations unless the other party shall agree to [ii:•.: :aid offender to
return and that party may jrl,:;ce conditions upon allowing th, rcptu;.-n olf the offender
which must be met by the ..t -her pc;rty and the offender before '.li<, r)ffend,=r will be
allowed to return.
No substitution may hie made for the chief speaker without: one week's notice in
writing and upon substitution all negotiations shall cease during the notice period
of one week until the new chief speaker shall become qualified. Tf the chief speaker
shall make a statement, recommendation or report or disclosure cnntr.ary to the terms
of this Agreement, he or she shall be removed and be ronlaced and all negotiations
shall cease for at least one week. An offending chief speaker moo l.c returned to the
team upon the same conditions set forth in this paragraph as any fe:m member.
The chief speaker for the City shall be:
Designee of the City Manager
The chief speaker for the Union shall be:
David Loney
Local 610
Central Fire Station
Iowa City, Iowa 52240
-3-
5. Executive Session. It is understood and agreed by the parties that the
negotiating process is a difficult process and subject to all manner of complica-
tions which may arise during the heat of negotiating sessions and that to hold the
negotiating sessions in public or to allow access to the sessions by the public or
the news media can and would inhibit, prolong and damage the negotiating process.
It- is further understood that any agreements which may be reached by the negotiating
teams are only recommendations which must be approved by the City Council of Iowa City
on behalf of the City and the Union members on behalf of the Union and that at said
time there will be a full public disclosure of any proposed contract or agreement,
terms, ordinances, rules or resolutions and that at such time the public and the Union
members will have full opportunity to consider the results of the work of the negotia-
ting teams.
It is therefore agreed that all negotiating sessions shall be -in executive session
and no one except the negotiating teams and one person for each team to take notes
shall be allowed to be in the sessions. The parties, however, may jointly agree to
allow additional persons to attend any session to act as a mediator if the parties
desire. It being understood that said mediation is not binding on either party or
the teams. Further, the parties may jointly agree to have an individual appear during
a session for the sole purpose of providing the negotiating teams with documentation
or reports on matters which the negotiating teams consider material or relevant to the
negotiations.
6. News Releases. The negotiating teams upon joint agreement only may from
time to time make joint news releases to the news media on the progress of the negotia-
tions or the subject matter of the negotiations. The releases shall be made jointly
by the two chief speakers and shall be prepared in advance in writing and shall be
signed by the chief speakers.
When negotiations have been concluded and a final report or recommendations or
proposals have been made by the negotiating teams and a copy of said report or recommen-
dations or proposals have been delivered to the City Council members, and the members
of the Union, a copy of said report or recommendations or proposals shall be made
available to members of the news media and shall be filed at the office of the City
Clerk of Iowa City, Iowa, and at such time shall be available to members of the
public as a public record.
No other news releases shall be permitted except that either party may unilater-
ally make a news release that the other party's negotiating team has violated the
term; of this negotiating agreement. Said release shall specifically scat Faith the
vi,A atlon of this Agreement and the person or persons violating it.
-4 -
It is understood that the intent of the parties as to news releases is to
prevent either party from making inflamatory or other type remarks to the news media
which can or could be misconstrued by the media, the public or the other negotiating
team or be taken out of context and therefore inhibit the progress of the negotia-
ting teams or the parties. Both parties agreeing that all negotiations an(] discussions
must be done in the executive sessions in order that the interest of the City, the
Union, the employees and the public will be best protected and ser:, -ed -
7. Reports to Parties. It is understood by and between the prn t.i.cs I -hat from
time to time it may be necessary for the negotiating teams Lo make. reports Lo ti,e
City Manager of the City and the elected officers of the Union, and that further, it
may be necessary for the City Manager to make a report to the City Council and further
that it may be necessary for the teams to make inquiry of the City ;Manager or Union
members on certain matters being negotiated.
It is agreed that such reports and inquiries may be made but on the following
conditions only:
1. That said reports and inquiries are made in executive session.
2. That said report or inquiry, or the subject matter thereof, may not be
communicated by the City Council, City Manager or of=icers of the Union, members of
the Union, or negotiating team member to anyone else without the consent of both the
parties and such consent shall be in advance and in writing.
3. That a negotiating team may make said report or inquiry on itown motion
or that of the manager or Union officers but may not be required to make a report
or inquiry by the other side.
If a City Council member, the City Manager or an elected Union nffi.cial or nego-
tiatinq team member shall violate the provisions of this paragraph either party or the
chief speaker of a team may issue a news release reprimanding the person who violated
this paragraph and set forth the violation and also may state in said news release that
the offender received prior to the commencement of negotiations a copy of this Agree -
Ment and was fully informed that the release of information obtained at such executive
sessions was a violation of this Agreement and could cause a disruption of negotiations.
8. Solicitations by Parties. It is agreed by the parties that during the nego-
tiatinq process neither party, its council members, City Manager, Union off.icc,rs,
negoti.-Ming teams, stewards, supervisory employees, agents or representatives or
Union r.,embers shall- seek out or solicit or attempt to persuade or discuss .i.nformation
or the negotiations with any person who is on the other side of the collective bargaining
procrs�. It being agreed by the parties that to better promote effl-lctivo negotiations
the negotiations need be carried on exclusively by the negotiating teams and that
said process should not be circumvented in any way. And the parties further agree
that if a violation of this paragraph is committed that either party may issue a
new_: release in the manner and form as set forth in paragraph 7 for a violation of
that prdgraph.
9. Sessions. Collective bargaining sessions shall be set at such time and
place as shall be agreed, between the teams. If for some reason a meeting place or
time must be changed the chief speaker of the team wishing the change shall contact
the chief speaker of the other team, give the reason for the change, and propose a
new time or place. No meeting place or time shall be changed unless a new time or
place is specified at the time the change is agreed upon.
There shall be scheduled a minimum of two sessions each week unless the parties
agree otherwise. All sessions shall be for no longer than three hours unless the
teams jointly agree to extend the length of a particular session. Recesses shall be
allowed during the sessions to suit the convenience of the team members. A team shall
be entitled to recess during a session to confer privately with the members of the team
to discuss items being negotiated. Once a session has been commenced no substitution
or chanties in a negotiating team may be made until that session is completed. The no
substitution rule during a session may be waived by the teams jointly for a particular
session, but any such waiver shall apply only to the particular session waived and
shalL not operate to waive the rule on future sessions. In the event of illness or
incapacitation or emergency which requires the absence of a team member, the team
lo=ving maid member may substitute a new team member or recess, the mceti.ng- Such
substitution must be agreed to by the other team or the session must ham: rec:assed_
10. Proposals. In an effort to expedite the bargaining process and promote
the orderly development of the process the parties agree to prepare written proposals
as to the items they wish to negotiate on. Such proposals shall be in writing and
delivered and presented to the other side at the first meeting. Additional proposals
involving different subject matter than the original proposals may be submitted for
an additional two week period. Thereafter neither party may present additional pro-
posals involving new subject matter after the expiration of the two week period,
however, either party may present counter -proposals involving the same subject matter
as was contained in the original proposals presented by either party and said counter-
proPosal.s may be presented at any time, subject to the other terms of this agreement.
Adclitional proposals not in the original proposals may be added or may be brought
uu aft'_' c the two wee' period has expired only if the teams jointed agree, or the team
(not caused by their negligence), or a material misrepresentation by the other
team (whether intentional or unintentional), or new information has been determined
which was not available or could not have been obtained at the time of the original
period for proposals.
It is the intent of the proposals submission to assist the parties in the
negotiating process by enabling each party to know generally of the ot.har parties
interests so that the parties and the negotiating teams may determine the areas of
agreement and disagreement and be prepared to provide information on areas of dis-
agreement which may help resolve any disagreements.
11. Agendas. Each negotiating session shall have an agenda of items to be
discussed. The agenda for each meeting shall be set at the previous meeting and
agreed to by the teams. The teams may set agendas for several meetings in advance
if the teams so agree. Once an agenda has been agreed upon it may be changed only
by joint agreement of the teams. No item not on an agenda may be discussed at any
session unless both teams jointly agree to discuss said item. No party can refuse
to put on some agenda (although reserving right to agree on which agenda) an item that
was or the original proposal submitted pursuant to paragraph 10 of this Agreement and
the parties hereby agree that all items submitted in said proposals shall be on at
least one agenda. The placing of an item on an agenda does riot obligat-� either party
to agree on any aspect of said item in any way and each party can re.se,.ve to itself
the decision that any item may be completely rejected even though proposed by the
other side.
At the second meeting of the negotiating teams the agenda shall he as follows:
1. Discussion of areas of general agreement in proposals.
2. Discussion of areas of disagreement in proposals.
3. Discussion of areas where one party or the other sees area as nor: -negotiable.
4. Arrangement of schedule of topics for future agendas.
5. Setting the agenda for the next meeting or meetings.
During any session the agenda order need not be followed in the progr.cssion
lasted.
TF an item was on a previous agenda and agreement wa_4 ruo,:hed on tear :it:em at
that time, it may not be- brought up again unless either the te:lms jointly agree it
may be put on an agenda or the team wishing it put on the agenda can show that at the
time! of the agreement there was a mistake of fact (not caused by their nagLi.g-�nce)
or a material misrepresentation by the other team (whether Jnteritinnal or uni_ntenti.onal)
obtained at the time the item was first on the agenda.
An item which was on a previous agenda but was deferred or no agreement was
reached may be returned to any agenda as if it were an original item. If the
discussion of an item is not completed at a given meeting that item will automatically
be placed on the agenda for the next meeting unless the parties jointly ag:_ee other-
wise. If the parties cannot agree on an item or reach di -;agreement on an .item at
a meeting said item must be placed on the agenda for a subsequent meetiteg unless the
parties jointly agree otherwise.
12. Writing. Agreement on any item will be reduced to writing and shall be
approved by the team at the same session of which agreement is reached or at the
next session. It may be typed or handwritten. When the agreement draft is approved,
both chief speakers shall initial or sign same. A copy will be provided each. They
shall be kept confidential, unless both teams agree to a news release, until incor-
porated in the final proposal.
13. Non -Waiver. That the parties understand that the entering into this Agree-
ment does not operate as a waiver of any of the rights, duties, or obligations of
either of the parties in respect to collective bargaining including, but not limited
to, scope of bargaining, scope of representation, subjects involved in collective
bargaining, and terms and conditions of any collective bargaining agrer:ment, it being
understood that this Agreement sets only the manner and method oC -ting negotia-
tions between the parties.
14. Impasse Procedure. Either party to this Agreement, upon an impasse as defined
herein, may require mediation. The parties hereto agree that Robert B,:-rgstrom of
the Federal Mediation and Conciliation Service, whose office is at 510 American
Building, Cedar Rapids, Iowa, 52401, shall be appointed as mediator. In the event
that the said Robert Bergstrom is unable to serve as mediator for any reason, the
parties agree that another member of the Federal Mediation and Conciliation Service
may be substituted in his place.
Mediaton may be required by either party when there is a dispute as to a violation
of the terms of this Agreement or there is an impasse in the negotiations over the
terms of the collective bargaining agreement.
The parties hereto, hereby adopt for impasse procedures on thy-. terms and condi-
tion; of the Collective Bargaining Agreement itself, the provisions of Sect.ions .19,
20, 21 and 22 of Senate File 531 adopted by the legislature o.`. the St,1te! of- Iowa
ent.it'1--i, an Act relating to public employment relations and providing p n._lltiea for.
vi,A,itions. The i-mpasse procedures provided herein shall appl.; to ni.•gotiatio;is occurring
dur.inq the period from September. 1, 1974 to July 1, 1975.
15.
on Schedule "A" attached to this agreement and by this reference made a part hereof.
16. Entire Agreement. That this Agreement shall constitute the entire Agree-
ment between the parties unless there is specific incorporation by reference of an
additional rule, regulation, contract, agreement, other document or law: that the
parties hereto acknowledge that no act or representation by agents of either party may
alter or vary the terms, conditions, and agreements herein contained and the parties
hereto by entering into this Agreement agree to be bound by its terms in the conduct
of the negotiations which are the subject of this Agreement.
17. Paragraph Order. The order of the paragraphs in this Agreement are not
intended to emphasize any particular paragraph or allow any paragraph to supercede
any other paragraph and .if it is determined a conflict exists this Agreement shall
be construed to give every paragraph meaning in order to accomplish the intent of
the parties to hold fair, impartial and objective negotiations between the Union
and the City.
1£. Copies. Copies of this Agreement shall be filed with each of the parties
and in the office of the City Clerk and in the Public Library. It is understood
that this Agreement is public record, being a duly executed contract of the City
of Iowa City, a Municipal Corporation.
19. Good Faith. It is understood by the parties that any recommendations,
report;, ordinances, rules, regulations, agreements or resolutions which may result
from the negotiations contemplated by this Agreement affect the public interest in
addition to the interest of the employees of the City and the parties hereto pledge
themselves and their negotiating teams to good faith efforts Co negotiate to reach
an agreement that will serve the public interest and the interest of the parties.
20. Approval. It is understood that before any recommendations, reports,
ordinances, rules, regulations, agreements or resolutions which may result from the
negotiations between the negotiating teams become effective, they must be approved
by the Council of the City, the Union members, and the entering into this agreement in
no way obligates either of the parties to agreement in advance of any terns or agree-
ments reached by the negotiating tecuns and such are subject to approval by the parties.
It is further agreed that once an agreement is reached by the negotiating teams
that r:2i.thcr party, it's agents or representatives, shall go to the other parties
Coun:ii, Library Board, or the employees and solicit rejection or acceptance of
the proposal or seek additional items or seek agreement on an i.t m different: than
that jvv-ned to by the negotiating t%,ams. An effort of this nature by either the
Cit;:.: the Union shall. be deemed bad faith.
It is further agreed that this Agreement shall be binding on the parties,
their successors and assigns and shall be approved by the appropriate governing
bodies that have the authority to bind the respective parties to this Agreement
and the undersigned hereby represents that they have the authority to sign this
Agreement and it has been approved by the governing bodies of the parties,
21. Termination
Upon approval of the Collective Bargaining Agreement, this
contract shall terminate.
CITY OF IOWA CITY, IOWA
RZ
ATTEST:
City Clerk
INTERNATLONAL ASSOCIATCON OF
FIRE/TGHTERS, 7,oc-u d`510
BY:
M
X ,
RESOLUTION NO. 74-397
RESOLUTION OF APPROVAL OF CLASS C LIQUOR CONTROL LICENSE
BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA, that a
Class C Liquor Control License application is hereby ap-
proved for the following named person or persons at the following
described location:
James Lee Strabala dba/Deadwood Tavern, M Clinton St. Mall
Said approval shall be subject to any conditions or restrictions here-
after imposed by ordinance or state law.
The City Clerk shall cause a recommendation for approval to be
endorsed upon the application and forward the same together with the
license fee, certificate of financial responsibility, surety bond,
sketch of the premises and all other information or documents required
to the Iowa Beer and Liquor Control Department.
It was moved by White and seconded by deProsse
that the Resolution as read be adopted, and upon roll call there were:
Brandt
Czarnecki
Davidsen
deProsse
White
Passed this
AYES: NAYS
X
X
X
X
10th
day of
ABSENT:
September
19 74
WHEREAS, the following firms and persons have made application, filed the
bond, and paid the mulct tax required by law for the sale of cigarettes and
cigarette papers; therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA, that the applications
be granted and the cigarette bond now on file in the office of the City Clerk be
and the same are hereby approved, and the City Clerk be and he is hereby directed
to issue a permit to sell cigarette papers and cigarettes to the following named
persons and firms:
Ogden Foods, Inc. dba/U of I Stadium & Fieldhouse
Grand Avenue
It was moved by White and seconded by deProsse that
the Resolution as read be adopted, and upon roll call there were:
Passed this 10th day of Sept. 19 74
AYES: NAYS: ABSENT:
Brandt
X
Czarnecki
X
Davidsen
X
deProsse
X
White
X
Passed this 10th day of Sept. 19 74
WHEREAS, Montgomery Ward & Co at Wardway Plaza
in Iowa City, Iowa, has surrendered cigarette permit No. 74-48
expiring
June 30,V 19 75 , and requests a refund on the unused portion
thereof, now therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA, that cigarette
permit No. 74-48 , issued to Montgomery Ward & Company
be cancelled, and
BE IT FURTHER RESOLVED that the Mayor and City Clerk be and they are hereby
authorized and directed to draw a warrant on the General Fund in the amount of
S 75.00
payable to Canteen Food & Vending Service
as a refund on cigarette permit No. 74-48,
It was moved b White
Y and seconded by
deProsse
the Resolution as read be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
Brandt X
Czarnecki X
Davidsen X
deProsse X
White X
Passed this 10th day of September, 19 74
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RESOLUTION NO. 74-400
11
RESOLUTION TO ISSUE DANCING PERMIT.
BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA, that a Dancing
Permit as provided by law is hereby granted to the following named person and
at the following described locations upon his filing an application, having
endorsed thereon the ceritifcates of the proper city officials, as to having
complied with all health and sanitary laws, regulations, and ordinances and
all fire laws, regulations and ordinances, and having a valid Class "B" Beer
Permit, to -wit: -
Highlander Supper Club, Hwy. 1 & I-80
It was moved by White and seconded by deProsse
that the Resolution as read be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
Brandt x
Czarnecki x
Davidsen X
deProsse X
White %
Passed this 10th day of September , 19 74
0
RESOLUTION NO. 74`401___ •
RESOLUTION SETTING PUBLIC HEARING
ON RESOLUTION OF NECESSITY
WATER POLLUTION CONTROL PLANT IMPROVEMENTS 1974
WHEREAS, preliminary plans and specifications are now on file in the
Office of the Cit
y Clerk for the .construction of
Water Pollution Control Plant Improvements, 1974
within the City of Iowa City, Iowa.
NOW, THEREFORE BE IT RESOLVED by the City Council of Iowa City, Iowa:
1- That it is deemed advisable and necessar t
Water Pollution Control Pl y o construct
within the Cit ant
City of IImprovements, 1974
owa City, Iowa, to -wit:
Repair, replacement and/or c
items of work that remain aetion of deficient
Pollution Control Plant previously unacceptable and/or
PrOvements 3' initiated project entitled "Water
shed
Iowa Ci , 197111
2• The method of construction shall be by contract.
3. The entire cost of the improvement shall bead
Funds of the City of Iowa
property. City -and shall not be assessed against
thGeneral
benefited
the 1st That the City Council shall meet at 7:30
day the Ci��enterof October 19 74 — °'clock P.M
for the in the Council °A
the coat thereof. purpose of hearingChambers of
objections to said improvement or
S• The City Clerk is hereby authorized and directed to cause notice of
this Resolution to be published as required by law.
It was moved by Brandt and seconded by White that
the Resolution as read be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Brandt
x Czarnecki
x Davidsen
x deProsse
x White
Passed and approved this 10th day of Sept. 1974
ATTEST:
Mayor
RESOLUTION NO. 74-402
RESOLUTION DIRECTING ENGINEER TO PREPARE
DETAILED PLANS & SPECIFICATIONS AND
DIRECTING ATTORNEY TO PREPARE FORM OF
CONTRACT AND NOTICE TO BIDDERS ON THE
WATER POLLUTION CONTROL PLANT IMPROVEMENTS, 1974
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA:
That George Bonnett , City Engineer is hereby ordered
and directed to prepare and file with the Clerk detailed plans
and specifications for the construction of the
Water Pollution Control Plant Improvements, 1974
BE IT FURTHER RESOLVED that the Attorney is hereby ordered
and directed to prepare and file with the Clerk a Notice to
Bidders and form of contract for the construction of the
Water Pollution Control Plant Improvements, 1974
It was moved by Brandt and seconded by white
that the Resolution as read be adopted, and upon roll call
there were:
AYES: NAYS: ABSENT:
X
X
X
X
X
Brandt
amwaaac Davidsen
Czarnecki
cq�c deProsse
White
PASSED AND APPROVED, this
19 74 .
ATTEST: J
City Clerk
10th
day of September ,
RESOLUTION N0. 74-403
RESOLUTION ORDERING CONSTRUCTION, APPROVING PLANS,
SPECIFICATIONS AND FORM OF CONTRACT AND NOTICE TO
BIDDERS, FIXING AMOUNT OF BIDDER'S CHECK, AND
ORDERING CITY CLERK TO PUBLISH NOTICE TO BIDDERS
AND FIXING A DATE FOR RECEIVING SAME, AND FOR A
PUBLIC HEARING ON PLANS, SPECIFICATIONS AND FORM
OF CONTRACT
WATER POLLUTION CONTROL PLANT IMPROVEMENTS, 1974
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA:
That the construction of Water Pollution Control Plant Improvements
is hereby ordered to be constructed.
BE IT FURTHER RESOLVED that the detailed plans and specifications as
prepared by
for the construction of said Water Pollution Control Plant Improvements, 1974
for the City of Iowa City, Iowa, and the form of
contract and Notice to Bidders, as prepared by the City Attorney, be and the
same are hereby approved, and are hereby ordered placed on file in the office
of the City Clerk for public inspection.
BE IT FURTHER RESOLVED, that the amount of the check to accompany each bid
shall be in the amo mt of $2,000.00.
BE IT FURTHER RESOLVED, that the City Clerk is hereby directed to adver-
tise for bids for the construction of said improvements, bids to be received
by the City Manager in behalf of the City Council of the City of Iowa City,
Iowa, up to 10: 00 O'clock AM. on the 3rd day of October 31974 , and
to be opened by the City Manager at a public meeting to be presided over by him
at that time, and thereupon referred to the City Council for action upon said
bids at a meeting to be held at the Council Chambers, Civic Center, Iowa City,
Iowa, on the 8th day of October ,1974 , at 7:30 o'clock PM. Notice
to Bidders is to be published once each week for two consecutive weeks in
the Iowa City Press -Citizen, a legal newspaper, printed wholly in the English
language, the first publication to be not less than fifteen clear days prior
to the date fixed for said letting. In the absence of the City Manager said bid
opening may be conducted by any city official to whom such power has been
delegated by Ordinance.
BE IT FURTHER RESOLVED, that the Council hold a public hearing on the
matter of the adoption of proposed plans, specifications and form of contract
for the making of said improvements, which documents are now on file in the
office of the City Clerk, said hearing to be held at the place last above
mentioned on the 1st day of October , 19 74, at 7: 30 O'clock P M. ,
and that the City Clerk give notice of said hearing by publication once in a
local legal newspaper, printed wholly in the English language, at least ten
clear days prior to the date fixed therefor.
It was moved .by Brandt and seconded by White that
the resolution as read be adopted and upon roll call there were:
RESOLUTION NO. 74-403
AYES: NAYS: ABSENT:
Brandt x
Czarnecki x
Davidsen x
deProsse x
White x
Passed this 10th day of Sept. , 19 74
� L'
jMayor
ATTEST:
City Clerk T
I
C�
Legislative Analysis:
COMMUNITY DEVELOPMENT BLOCK GRANTS
MAJOR ELEMENTS
0
NA'CIONAI. LRA(ltll(OI? (JITII?8
soil
U.S. CONItFItIiNCI. (lit MAYOIL4
Office of Federal Relations
Angunt 1474
ISSUES ( Title I of the Housing and Community Development Act of 1974
1. Programs to be
Consolidated
2. Eligible Urunt
Recipients
3
Fligible Activlded
(1) Urban Renewal (all Tide I activities Including conventional projects, NDP, amendstories, code
enforcement, etc.)
(2) Neighborhood Facilities
(3) Open Space Land
(4) Basic Water and Sewer Facilities
(5) Model Cities
NOTE: Public Facility Loan Program would be terminated. Section 312 Rehabilitation Loan to remain
separate for one additional year, then consolidated.
(1) Unit of general local government (including any city, county, town, township, parish, village, or
other general purpose political subdivision of a State; a combination of such political subdivisions
recognized by the HUD Secretary) --One or more public agencies, Including existing local public
agencies, may be designated by the chief executive of a State or unit of general local government
to undertake a Community Development Program in whole or in part.
(2) State
A Community Development Program may include only --
(1) The acquisition of real property which Is (A) blighted, deteriorated, deteriorating, undeveloped, or
Inappropriately developed from the standpoint of sound community development and growth;
(B) appropriate for rehabilitation or conservation activities; (C) appropriate for the preservation or
restoration of historic sites, the beautification of urban land, the conservation of open spaces,
natural resources, and scenic areas, the provision of recreational opportunities, or the guidance
of urban development; (D) to be used for the provision of public works, facilities, and improvements
eligible for assistance under this tide; or (E) to be used for other public purposes;
(2) The acquisition, construction, reconstruction, or installation of public works, facilities, and site
or other Improvements;
(3) Code enforcement in deteriorated or deteriorating areas in which such enforcement, together with
public Improvements and services to be provided, may be expected to arrest the decline of the area;
(4) Clearance, demolition, removal, and rehabilitation of buildings and improvements (including interim
assistance and financing rehabilitation of privately owned properties when incidental to other activities);
(5) Special projects directed to the removal of material and architectural barriers which restrict the
mobility and accessibility of elderly and handicapped persons;
(6) Payments to housing owners for losses of rental income incurred in holding for temporary periods
housing units to be utilized for the relocation of individuals and families displaced by C. D. program
activities;
(7) Disposition of any real property acquired pursuant to this title or Its retention for public purposes;
(8) Provision of public services not otherwise available in areas where other activities assisted under
this title are being carried out in a concentrated manner, if such services are determined to be
necessary or appropriate to support such other activities and if assistance in providing or securing
such services under other applicable Federal laws or programs has been applied for and denied
or not made available within a reasonable period of time, and if such services are directed toward
(A) improving the community's public services and facilities, including those concerned with the
employment, economic development, crime prevention, child care, health, drug abuse, education,
welfare, or recreation needs of persons residing in such areas, and (B) coordinating public and private
development programs;
(9) Matching: payment of the non -Federal share required in connection with a Federal grant-in-aid
program undertaken as part of the Community Development Program;
(10) Payment of the cost of completing an urban renewal project
(11) Relocation payments and assistance
Page 2
ISSUES Title I of the Housing and Community Development Act of 1574
3. Eligible Activities (12) Activities necessary (A) to develop a comprehensive community development plan, and (13) to develop
(continued) a policy -planning -management capacity so that the recipient of assistance under this title may more
rationally and effectively (i) determine Its needs, (it) set long-term goals and short-term objectives,
(III) devise programs and activities to meet these goals and objectives, (Iv) evaluate the progress of
such programs in accomplishing these goals and objectives, and (v) carry out management, coordl-
nation, and monitoring of activities necessary for effective planning Implementation; and
(13) Payment of reasonable administrative costs and carrying charges related to the planning and execution
of community development and housing activities, including the provision of information and resources
to residents of areas in which community development and housing activities are to be concentrated
with respect to the planning and execution of such activities.
NOTE: Upon the request of the recipient of a grant under this title, the Secretary may agree to perform
administrative services on a reimbursable basis on behalf of such recipient in connection with
loans or grants for the rehabilitation of properties as authorized under (4) above.
4. Type of Grant: Federal share would equal 100 percent.
Federal and
Local Shares
S. Objectives
E
6. Application
Requirements
10
The primary objective of this program is the development of viable urban communities, by providing
decent housing and a suitable living environment and expanding economic opportunities, principally for
persons of low and moderate Income. Consistent with this primary objective, the Federal assistance
provided by this program is for the support of C. D. activities which are directed toward the following
specific objectives --
(1) the elimination of alums and blight and the prevention of blighting influences and the deterioration
or property and neighborhood and community facilities of Importance to the welfare of the com-
munity, principally to persons of low and moderate income;
(2) the elimination of conditions which are detrimental to health, safety, and public welfare, through
code enforcement, demolition, interim rehabilitation assistance, and related activities;
(3) the conservation and expansion of the Nation's housing stock In order to prov±dc a decent home
and a suitable living environment for all persons, but principally those of low and moderate income;
(4) the expansion and improvement of the quantity and quality of community services, principally for
persons of low and moderate income, which are essential for sound community development and for
the development of viable urban communities;
(5) a more rational utilization of land and other natural resources and the better arrangement of
residential, commercial, industrial, recreational, and other needed activity centers;
(6) the reduction of the isolation of income groups within communities and geographical areas and the
promotion of an Increase in the diversity and vitality of neighborhoods through the spatial deconcentra-
tion of housing opportunities for persons of lower income and the revitalization of deteriorating or
deteriorated neighborhoods to attract persons of higher income; anti
(7) the restoration and preservation of properties of special value for historic, architectural, or
esthetic reasons.
'Maintenance of Effort --It is the intent of Congress that the Federal assistance made available under this
program not be utilized to reduce substantially the amount of local financial support for community
development activities below the level of such support prior to availability of assistance hereunder.
No grant may be made unless an application shall have been submitted to HUD in which the community --
(1) sets forth a summary of a three-year community development plan which identifies community
development needs, demonstrates a comprehensive strategy for meeting those needs, and specifies
both short- and long-term community development objectives which have been developed in accordance
with areawide development planning and national urban growth policies;
(2) formulates a program which (A) includes the activities to be undertaken to meet its community
development needs and objectives, together with the estimated costs and general location of such
activities, (li) Indicates resources other than those provided under this title which are expected to be
made available toward meeting its identified needs and objectives, and (C) takes Into account
appropriate environmental factors;
(3) describes a program designed to --
(A) eliminate or prevent slums, blight, and deterioration where such conditions or needs exist; and
(13) provide improved community facilities anti public improvements, including the provision of
supporting health, social, and similar services where necessary and appropriate.
ISS(11?S I Title I of the Housing and Community Development Act of 1974
6. Application
Requirements
(continued)
Ll
E
(4) submits a housing assistance plan which (A) accurately surveys the condition of the housing stock
in the community and assesses the housing assistance needs of lower-income persons (including
elderly and handicapped persons, large families, and persons displaced or to be displaced)
residing in or expected to reside in the community, (B) specifies a realistic annual goal for the
number of dwelling units or persons to be assisted, including (1) the relative proportion of new,
rehabilitated, and existing dwelling units, and (11) the sizes and types of housing projects and
assistance best suited to the needs of lower-income persons in the community, and (C) indicates the
general locations of proposed housing for lower-income persons, with the objectives of (i) furthering
the revitalization of the community, including the restoration and rehabilitation of stable neighborhoods
to the maximum extent possible, (it) promoting greater choice of housing opportunities and avoiding
undue concentrations of assisted persons in areas containing a high proportion of low-income persons,
and (til) assuring the availability of public facilities and services adequate to serve proposed
housing projects;
Cerdflcatlons--
(5) provides satisfactory assurances that the program will be conducted and administered in conformity
with federal civil rights laws; and
(6) provides satisfactory assurances that, prior to submission of its application, it has (A) provided
citizens with adequate information concerning the amount of funds available for proposed community
development and housing activities, the range of activities that may be undertaken, and other
important program requirements, (B) held public hearings to obtain the views of citizens on com-
munity development and housing needs, and (C) provided citizens an adequate opportunity to participate
in the development of the application; but no part of this paragraph shall be construed to restrict the
responsibility and authority of the applicant for the development of the application and the execution
of its Community Development Program.
Unspecified/ Local Option --Not more titan 10 per Centum of the estimated costs referred to in (2) which are
to be incurred during any contract period may be designated for unspecified local option activities which
are eligible for assistance or for a contingency account for activities designated by the applicant pursuant
to (2).
Targeting --Any C.D. grant shall be made only on condition that the applicant certify to the satisfaction
of HUD that its Community Development Program has been developed so as to give maximum feasible
priority to activities which will benefit low- or moderate -income families or aid in the prevention or
elimination of slums or blight. The Secretary may also approve an application describing activities
which the applicant certifies and the Secretary determines are designed to meet other community
development needs having a particular urgency as specifically described In the application.
Partial Waiver for Certain Small Communities --HUD may waive all or part of the requirements contained
in (1), (2), and (3) if (A) the application for assistance is in behalf of a locality having a ix,pulation of
less than 25, 000 according to the most recent data compiled by the Census which is located either
(1) outside a standard metropolitan statistical area, or (11) inside such an area but outside an "urbanized
area" as defined by the Census, (B) the application relates to the first community development block
grant activity to be carried out by such locality, (C) the assistance requested is for a single development
activity of a type eligible for assistance under the consolidated open space, neighborhood facilities or
water and sewer facilities programs, and (D) HUD determines that, having regard to the nature of the
activity to be carried out, such waiver is not inconsistent with the purposes of this title.
Performance Report --Prior to the beginning of fiscal year 1977 and each fiscal year thereafter, each
community shall submit to HUD a performance report concerning the activities carried out together with
an assessment by the community of the relationship of those activities to the objectives of this title and the
needs and objectives Identified in the community's application.
A -95 --No grant may be made under this title unless the application therefore has been submitted for review
and comment to an areawide agency under A-95.
Environmental Reviews --HUD may delegate all of its responsibilities (legal and otherwise) under NEPA
for environmental reviews to applicant -communities. Each community would submit a certification,
signed by the local chief executive, specifying compliance with NEPA regarding specific requirements
and consenting to accept legal responsibility under the Act. HUD, by accepting such certifications,
would discharge its responsibilities under NEPA.
ISSUES Title I of the Housing and Community Development Act of 1974
. Federal Review
H, Allocation and
Distribution of
Funds
11
E
4
(1) HUD shall approve applications unless (A) on the basis of significant facts and data, generally
available and pertaining to community and housing needs and objectives, HUD determines that the
community's description of such needs and objectives is plainly inconsistent with such facts or data; or
(B) on the basis of the application, HUD determines that the activities to be undertaken by the com-
munity are plainly inappropriate to meeting the needs and objectives identified by the community
In its application; or (C) HUD determines that the application does not comply with the requirements
of this title or other applicable law or proposes activities which are ineligible.
(2) HUD shall at least on an annual basis make such reviews and audits as may be necessary or
appropriate to determine whether the community has carried out a program substantially as described
In its application, whether that program conformed to the requirements of this title and other
applicable laws, and whether the community has a continuing capacity to carry out in a timely manner
the approved C. D. Program. HUD may make appropriate adjustments in the amount of the annual
grants in accordance with Its findings.
(3) Applicptions, if submitted after any date established by HUD for consideration of applications, shall
be deemed approved within 75 days after receipt unless HUD informs the community of specific
reasons of disapproval. Subsequent to the approval of any application, the amount of the grant may
be adjusted in accordance with the provision of the statute.
(4) GAO is authorized to have access to a community's accounts, records, etc. for auditing purposes.
All units of general purpose local governments would be eligible to seek block grant funding directly from
HUD. The total national appropriation for C. D. would be divided (after setting aside $50 million in
FY 75 and 76 for later addition to SMSA balances and after taking 2 percent off the top for the HUD
discretionary fund):
--80To for activities to be undertaken in metropolitan (SMSA) areas;
--20'70 for activities to be undertaken in non -SMSA areas.
Metropolitan (SMSA) Areas --
Definitions/Metropolitan City: A central city or any other city over 50,000 population within an SMSA.
A limited number of towns with populations over 50,000, which possess powers and perform functions
comparable to cities, would be defined as metropolitan cities.
Urban County: A county within an SMSA which
a) Is authorized under state law to undertake essential community development and housing assistance
activities In its unincorporated areas, if any, which are not units of general local government, and
b) has a combined population of 200,000 or more (excluding the population of metropolitan cities
therein) in such unincorporated areas and in its Included unite of general local government
1) in which it has the authority to undertake essential community development and housing assistance
activities and which do not elect to have their population excluded or
2) with which it has entered into cooperation agreements to undertake or to assist in the undertaking
of essential community development and housing assistance activities.
Basic Grant Entitlement --Each metropolitan city and urban county would be eligible for a basic grant
entitlement equal to the greater of its formula or hold harmless allocation.
Formula --From the 80 percent fund reserved for metropolitan areas, each metropolitan city and urban
county would be computed a formula share. Three criteria would be used: population, poverty (double
weighted, income figures regionalized), and housing overcrowding. In computing shares for any urban
county, there would be excluded the demography attributable to a smaller community (other than a
metropolitan city) within the county which is entitled to hold harmless commitments and the population
of which is not counted in determining the initial eligibility of the county itself --unless such smaller
community exercises its right to waive its hold harmless entitlement.
Hold Harmless --Each metropolitan city or urban county would be eligible for a minimum funding alloca-
tion or hold harmless amount. That amount would be the sum of --
a) The sum of the average of all grants, loans or advances received during FY 68-72 under each of
the consolidated programs, except NDP and Model Cities,
b) The average annual grant made under Model Cities during FY 68-72, and
c) The average annual grant made under the Neighborhood Development Program during 17Y 68-72, or
during FY 73 for the first-time NDPs. (Grants or loans made to assist in recovery from natural
disasters, and grants made to assist in the initial lmplementaticn of the 1970 Uniform Relocation
Assistance Act are understood to be excluded from this computation.)
Model Cities --In determining the average annual grant under Model Cities, a spending rate calculation
would be used. The Model Cities portion of the hold harmless amount for a community would continue at
100 percent so long as was necessary for the community to complete its "fifth action year" under its local
program; In the subsequent 3 years, the Model Cities portion of hold harmless would decrease 8070,
60%, 40%.
® 8.
E
a
E
ISSUES I Title I of: tho Housing andCommunityDovolopment Act. of 1974
Allocation and
Distribution of
Funds
(continued)
5
A smaller community with no formula share would be eligible for funding at least equal to the alx,ve hold
harmless computation if, during FY 68-72, or during FY 73 for first time NDPs, one or more urban
renewal code enforcement, neighborhood development, or model cities programs were being carried
out. Such a smaller community with a hold harmless amount could irrevocably waive its eligibility
for this amount not later than 30 days prior to the beginning of each program year in fal ir of seeking
greater funding from unallocated discretionary funds.
Phase-In/Formula--If a metropolitan city's or urban county's formula exceeds its hold harmless in
the community's first program year, its actual allocation would be subject to adjustment as follows:
In the first year, the allocation would be the greater of one-third of formula or hold harmless; in the
second year, the greater of two-thirds of formula or hold harmless; in the third year, formula.
Phase-Down/Hold Harmless --During FY 75, 76, and 77, a community would be eligible for 100 percent
of its hold harmless amount (excepting the separate phase down of the Model Cities credit). During
FY 78, 79, and 80, any community with a hold harmless amount larger than its formula would have
the difference between the two amounts phased down to zero in three equal steps (2/3, 1/3, zero).
Smaller hold harmless communities with no formula shares would be treated as if their formula amount
was zero. Regarding the provision excluding the demography of such smaller communities within a
potential urban county from the counry's demography, HUD would exclude 2/3 of such data in FY 78,
1/3 in FY 79, and none in FY 80.
SMSA Balances --After completing the allocation of formula funds to metropolitan cities and urban counties
and of hold harmless funds to all eligible units of general local government within metropolitan areas,
the balance of metropolitan funds would be distributed among all SMSAs by formula, using the same
criteria as with metropolitan cities, but excluding the demography of all formula and hold harmless
communities within each SMSA. In FY 75 and 76, the $50 million initially set aside from the total
appropriation would be reinserted at this point.
Re -allocation --Any formula or hold harmless amounts allocated to a metropolitan city or urban county
which are not applied for during a program period, or which are not approved by I1UD, and any other
amounts allocated to a metropolitan area which HUD determines, on the basis of the applications and
other evidence available, are not likely to be fully obligated during such program period, shall be
reallocated during the same period for use by States, metropolitan cities, urban counties, or other
units of general local government, first, in any metropolitan area in the same Stare, and second, in
any other metropolitan area. HUD shall review determinations under this procedure from time to time
as appropriate with a view of assuring maximum use of all available funds in the period for which such
funds were appropriated.
Program Period --The period from 1/1/75 to 6/30/75, and the period covering each fiscal year thereafter.
Non -Metropolitan Areae --
Hold Harmless --A unit of'general local government outside an SMSA would be eligible for a hold
harmless amount in the same fashion as would be a unit of general local government (other than a
metropolitan city or urban county) within an SMSA. Similarly, this hold harmless amount would
phase down to zero by FY 80.
Non -SMSA Balances --After meeting hold harmless requirements, the balance of the 20 percent
non -SMSA fund would be allocated among the non -metropolitan areas of the country, by state, using the
same three formula criteria as above and excluding the demography of non -SMSA hold harmless
communities. HUD (not the state), would administer the distribution of these funds. HUD is required
to reallocate unutilized non -SMSA funds similar to the procedure for SMSA funds outlined above.
Discretionary Fund --Of the total amount appropriated for C. D. during each of FY 75, 76, and 77,
HUD shall reserve, off the top, 2 percent of the funds to be set aside in a special discretionary
fund to be used by HUD as grants
a) on behalf of new communities;
b) to states and localities carrying out housing and C. D. programa that are areawide in scope;
c) in Guam, the Virgin Islands, American Samoa, and the Trust Territory of the Pacific Islands;
d) to states and localities for the purpose of demonstrating innovative C. D. projects;
e) to states and localities for the purpose of meeting emergency C. D. needs caused by federally
recognized disasters (total not to exceed 40 percent of special discretionary fund in any one year); and
f) to localities where HUD deems it necessary to correct inequities resulting from the allocation
provision of this title.
3. Davis -Bacon The prevailing wage rate provisions of the Davie -Bacon Act apply to all construction financed under
Labor Pro- the C. D. program. The rehabilitation of residential property for use by eight or more families Is covered.
visions
issill±s -Title 1 of the Housing and Community Development Act of .1974 - .. .
®�. ll- adon and
HUD Recommendations to Congress for Changes
--Not later than 3/31/77, HUD shall report to Congress
11,-trilo iltm of
its recommendations for modifying or expanding the provisions of the C. D. program relating to the
Foods
method of funding, the allocation of funds, the determination of the basic grant entitlement, and the
(continued)
application of such provisions In the future distribution of funds under this program. In making this
report, HUD shall conduct a study to determine how C. D. funds can be distributed in accordance with
C. D. needs, objectives, and capacities, measured to the maximum feasible extent by objective
standards.
9. Loan Provision
The bill provides for federal guarantees of local financing of certain block grant activities. Loans could
cover the cost of acquiring and assembling real property, of site and other improvements, of interest,
demolition, and relocation. Administrative costs and eligible "software" activities would not be covered.
There would be no direct federal loans. Each community receiving a federal guarantee w(uld, in
turn, be requlred to give its full faith and credit commitment to raise the estimated proceeds from the
disposition of the real property and related items covered by the loan. The community would designate
a portion of Its block grant allocation to cover the difference between the value of the loan and the
estimated proceeds.
HUD would reserve 110 percent of this designated portion of the community's grant. In the event of an
unanticipated, major reduction In land values, the projection of estimated proceeds would be subject
to renegotiation. Other shortfalls from estimated receipts would have to be absorbed by the community.
In the event of a default by the community, and where HUD exhausts its legal rights without satisfaction,
[IUD would be authorized to offset any losses against future grant allocations due that community.
On an optional basis, communities could use taxable obligations to finance their programs In which case
30 percent interest subsidy grants would be available from HUD, funded by an authorization separate
from the block grant.
10. Completion of
Use of Grants to Settle Outstanding Urban Renewal Loans --The blU provides for a procedure to complete
Existing Urban
unfinished conventional urban renewal projects, particularly where additional funds are needed to effect
Renewal Projects
such a completion. The process could be initiated either
a) By HUD, where it determines, after consultation with the LPA carrying out the project and the
chief executive of the locality, that the project cannot be completed without additional capital grants, or
b) By the LPA carrying out the project, after submitting to HUD an appropriate request which is
concurred in by the governing body of the locality.
HUD would determine the funds needed to complete the project as planned by making an accounting for
eacb project, taking into consideration the costs incurred or to be Incurred, the estimated proceeds
upon any sale or disposition of property and the capital grants approved for the project. Where
additional funds were determined to be necessary in order for the project to be completed under the
existing contract, the bill would authorize HUD to earmark up to 20 percent of the annual block grant
allocation for the community. House Committee Report language states that, in the case of communities
needing large amounts of additional funds relative to the size of their annual block grant allocation, HUD
would also be expected to utilize available "transition" funds (i.e. the separate funds approved for each
of the first three years).
11. Applicability of
Act assumes that 1970 Uniform Relocation Act automatically applies to C. D.
Uniform Rclocatfon
Assistance Act of
1970
12. Linkage to
Close linkage to all HUD assisted housing programs required under Title 11 of the Act. HUD would
Federally -Assisted
approve local seals t lens submitted by individual communities (same plan as required
Housing Program
under C.D. ). After p an approved, HUD would sign off on each project for compliance with the local
plan with the community having the ilght to comment on HUD's decision.
3. Davis -Bacon The prevailing wage rate provisions of the Davie -Bacon Act apply to all construction financed under
Labor Pro- the C. D. program. The rehabilitation of residential property for use by eight or more families Is covered.
visions
ISSUES I Title I of the HouMing and Community Devolopment Act of 1474
Pa Ke 7
t4. Effective Date I January 1, 1975. HUD shall establish appropriate deadlines for the submission of applications from the
various categories of general local governments.
15. Authorizations
16. Transition
Three year authorization of contract authority totalling $8.4 billion, of which $2.5 billion could be
utilized in the first year (FY 75), $2.95 billion in the second year (FY 76), and $2.95 billion in the
third year (FY 77). Prior approval in appropriation acts necessary. in addition to the above authoriza-
tions, the bill would also provide $50 million for each of the first two years (FY 75-76) and $100 million
for the third year (FY 77) for grants to localities having urgent C. D. needs which cannot be met through
the operation of the block grant's regular allocation provisions.
Rill provides open ended authorizations ("such funds as may be necessary'/ for Urban Renewal (no time
limit) and Model Cities (extension limited to FY 75 only). Any FY 75 funds appropriated and allocated
to a city under either Urban Renewal or Model Cities would be offset against the total FY 75 C. D. block
grant allocation for which that city was entitled.
10% Advance --With respect to the program period beginning Janusry 1, 1975, HUD may advance, to
metro. cities, urban counties, or hold harmless communities, up to 10 percent of their entitlement only
for use
a) to continue ongoing activities under one of the consolidated programs, or
b) to plan and prepare for the Implementation of the C. D. activities.
0
SUMMARY OF THE
HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974
The Housing and Community Development Act of 1974 is omnibus legislation the provisions of which
alter significantly Federal involvement in a wide range of housing and community development activities. The
new law contains eight titles as follows:
• Community Development (Title 1);
. .Assisted Housing (Title II);
• Mortgage Credit Assistance (Title III);
• Comprehensive Planning (Title IV);
• Rural Housing (Title V);
• Mobile Home Construction and Safety Standards (Title VI);
. Consumer Home Mortgage Assistance (Title VII); and
• Miscellaneous (Title VIII).
Among the most significant features of the measure are the following.
COMMUNITY DEVELOPMENT
The new law consolidates several existing categorical programs for community development into a new
single program of community development block grants. Major features include:
Purposes. The primary objective of the title is the development of viable urban communities by providing
decent housing and a suitable living environment and expanding economic opportunities, principally for
persons of low- and moderate -income. This objective is to be achieved through elimination of slums and blight
and detrimental living conditions, conservation and expansion of housing and housing opportunities, increased
Public services, improved use of land, Increased neighborhood diversity, and preservation of property with
special values. It also is the purpose of the title to further development of a national growth policy by
consolidating certain programs into a system which (1) provides assistance annually with maximum certainty
and minimum delay, (2) encourages community development activities consistent with local and areawide
planning, (3) furthers achievement of the national housing goal, and (4) provides for coordinated and mutually
supportive housing and community development activities.
Programs To Be Terminated.
• Open Space—Urban Beautification—Historic Preservation grants,
• Public Facility Loans,
• Water and Sewer and Neighborhood Facilities Grants,
• Urban Renewal and NDP Grants,
• Model Cities Supplemental Grants, and
• Rehabilitation Loans (program to be ended one year from enactment).
Date Funds for New Program To Be Available. January 1, 1975.
Amount of Federal Funds To Be Committed Each Year. $8.4 billion in contract authority for three years
with annual disbursement limitations of $2.5 billion in fiscal year 1975, $2.95 billion in fiscal year 1976 and
$2.95 billion in fiscal year 1977. To the extent not otherwise obligated, sums appropriated for open space,
water and sewer, neighborhood facilities, and model cities supplemental grants can be used during the first
program year to liquidate contracts entered into pursuant to the $8.4 billion authorization.
In addition, up to $50 million for each of fiscal years 1975 and 1976 and $100 million for fiscal year
1977 is authorized for transition grants to communities with urgent community development needs which
cannot be met through the title's allocation provisions.
Eligible Recipients of Funds. States, cities, counties and other units of general local government (including
designated public agencies). In addition certain private "new community" developers and "new community"
citizens associations are eligible to receive funds.
Required Contribution of State or Local Funds as a Condition of Federal Assistance. No requirement for
State or local contributions. Grants can be for up to 100 percent of activity costs.
What a Community Must Do To Secure Funding.
• Need for an application. Applicants are required to submit an annual application for Federal approval.
• Contents of application. All applications must contain:
(1) a summary of a three-year plan which identifies community development needs and objectives
developed in accordance with areawide development planning and national urban growth policies and which
demonstrates a comprehensive strategy for meeting those needs.
(2) formulation of a program which:
includes activities to meet community development needs and objectives.
indicates resources other than assistance under the title expected to be available to meet such needs
and objectives.
. takes account of environmental factors.
(3) a description of a program to:
eliminate or prevent slums, blight, and deterioration where such conditions or needs exist.
provide improved community facilities and public improvements, including supporting health and social
services where necessary and appropriate.
® (4) a housing assistance plan which:
accurately surveys the condition of the community's housing stock and assesses the housing assistance
needs of lower income persons residing or expected to reside in the community.
specifies a realistic annual goal for the number of units or persons to be assisted, including the mix of
new, existing and rehabilitated units and the size and types of projects and assistance best suited to the needs
of area lower income persons.
*indicates the general locations of proposed lower income housing with a view to furthering
revitalization, promoting greater housing choice and avoiding undue concentration of low-income persons, and
assuring availability of adequate public facilities and services for such housing.
In limited circumstances, requirements 1, 2, and 3 above may be waived in the case of smaller
communities.
Requirements applicants must meet.
. compliance with Civil Rights Acts
. adequate citizen participation
• A-95 review of applications
•
annual performance report including an assessment of past activities' relationship to the title's and the
recipient's stated objectives.
T;1ne allowed for Federal action on application. Applications from "metropolitan cities" and "urban
counties" if submitted after the date set for consideration of applications will be deemed approved after 75
days unless HUD notifies otherwise.
Scope. of Federal Review—Application. Applications from "metropolitan cities" and "urban counties"
0 2
must be approved unless:
. the description of community 'developmentand housing needs and objectives is plainly inconsistent
with generally available Information,
® , the activities proposed are plainly inappropriate to meeting stated needs and objectives, or
. the application does not comply with the requirements of the title or other applicable law or proposes
ineligible activities.
1.1
C
Federal Authority to Review Performance of Approved Applicants and Adjust Assistance Levels
Accordingly. HUD will review programs at least annually and can make adjustments in assistance amounts
where:
the program carried out was not substantially that described in the application
the program did not conform to the requirements of the title or other law
the recipient does not have the continuing capacity to carry out the program in a timely manner.
Environmental Impact Statements. Under regulations of the Secretary, impact statements will not be
required at the time applications are reviewed. Instead, recipients will prepare NEPA-type statements on
specific projects having major impacts on the environment before they commit funds to those projects and
will have to certify compliance to HUD before funds are released.
Permissible Uses of Funds. In general, funds received under this title may be used to assist the type of
activities which were eligible under the prior community development programs. Specific activities may
include:
—acquistion of real property which is
. blighted, deteriorated, deteriorating, or inappropriately developed
• appropriate for rehabilitation and conservation activities
. appropriate for preservation or restoration of historic sites, urban beautification, conservation of open
spaces, natural resources or scenic areas, provision of recreation, or the guidance of urban development
to be used for the provision of eligible public works, facilities, and improvements
to be used for other public purposes.
—acquisition, construction, or installation of public works, facilities, and site or other improvements—
including neighborhood facilities, senior centers, historic properties, utilities, streets, street lights, water and
sewer facilities, foundations for air rights sites, malls and walkways, and recreation facilities. Flood and
drainage facilities are eligible only where assistance under other Federal programs is unavailable. Parking and
solid waste disposal facilities and fire protection services and facilities are eligible only if located in or serving
designated community development areas.
. code enforcement in deteriorated or deteriorating areas expected, together with public improvements
and services, to arrest area decline.
clearance, demolition, removal, and rehabilitation of buildings and improvements including interim
assistance and financing rehabilitation of privately owned properties when incidental to other activities.
. special projects to remove material and architectural barriers restricting mobility and accessibility of
elderly and handicapped persons.
. payments to housing owners for losses of rental income while temporarily holding units to be used for
relocation.
—disposition or retention of acquired real property.
—provision of public services not otherwise available in areas of concentrated activities if necessary to
support such activities, if funding for such services was applied for under any Federal program and denied,
and if such services are directed toward (a) improving public services (employment, economic development,
crime prevention, child care, health, drug abuse, education, welfare, or recreation needs) and (b) coordinating
3
® public and private programs.
—payment of non -Federal share in connection with other Federal programs undertaken as part of the
development program.
—relocation payments and assistance for those displaced by assisted activities.
—activities necessary to develop a comprehensive plan and a policy - planning - mandgement capacity to
more effectively determine needs, set goals, and objectives, develop and eval-ate programs, and carry out
management activities necessary for planning implementation.
—payment of reasonable administrative costs and carrying charges related to the planning and execution
of activities.
Overall Limitations on Use of Funds. Grants are to be conditional on a recipient's certification that its
Community Development Program has been developed so as to give maximum feasible priority to activities
which will benefit low- and moderate -income families or help prevent or eliminate slums or bight. However,
approval also may be given to applications describing activities which the applicant certifies and HUD
determines are designed to meet other community development needs having a particular urgency as
specif'cally described in the application.
In addition, not more than 10 percent of estimated activity costs can be for local option activities or
contingency accounts.
Distribution of Funds
areas. Urban -rural split. 80 percent of funds to metropolitan areas (SMSAs); 20 percent to nonmetropolitan
Formula used to allocate funds. An objective formula will be used for community development
assistance of cities, counties, metropolitan and nonmetropolitan areas. The formula is based on population,
amount of housing overcrowding, and extent of poverty (counted twice).
Required distribution of funds to metropolitan cities and urban counties. If they meet application
requirements, cities with populations of 50,000 and over and central cities of SMSAs are entitled to formula
funds. These funds are to be distributed directly to them according to their needs measured against those of
other cities. Formula funds may exceed prior program levels but, where there is an excess, the city will be
"phased -in" up to its full formula level over a three-year period. Urban counties also are entitled to formula
funding based on their relative needs if they have power to undertake essential community development and
housing assistance activities (directly or by' agreement) in areas, excluding metropolitan cities and incorporated
units of general local government which elect to be excluded, that have a population of 200,000 or more.
Funding based on prior program levels. In addition to formula entitlement which will be paid to all
metropolitan cities and urban counties, those cities and counties which had been receiving a higher level of
funding under the prior programs will continue to receive this higher level (be "held -harmless") during the
first three years. Over the last three years of the title, the excess over formula will be phased out by thirds.
However, cities and counties which had been receiving model cities grants will receive a full model cities
"hold -harmless" amount long enough to' give each the equivalent of five action years under the program and
additionally will receive a declining percentage (80, 60 and 40 percent) of the full amount for a three-year
period following the community's fifth action year. Amounts released by phase-out of hold -harmless amounts
will be available for discretionary funding.
Smaller communities which have been participating in model cities, urban renewal (including NDP) or
code enforcement will receive the same "hold -harmless:' treatment even though they have no formula
entitlement.
Distribution of
Communities which
funds to communities not
have
entitled to
funds on
a formula or hold -harmless basis.
no formull entitlement,
and which
have not
been participating in urban renewal,
® 4
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s
11
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0
model cities, or code enforcement can apply for assistance out of funds not used for entitlement payments.
These funds will be divided among SMSAs, and non -SMSA areas of the various States, based on relative needs
as determined by formula. For each of fiscal years 1975 and 1976, $50 million from appropriations will be
added to the funds available for use in SMSAs.
Special provisions for assistance beyond the basic allocation as described above. Up to S50 million in each
of fiscal years 1975 and 1976 and $100 million for fiscal year 1977 will be authorized for "transitional"
grants to assist communities with ipecial needs that cannot be met from the allocation provisions described
above. Also, 2 percent of funds for each year will be set aside for a national "discretionary" fund which can
be used for grants:
in behalf of assisted "new communities"
to carry out areawide housing and community development programs
In Guam, the Virgin Islands, American Samoa, and the Trust Territory of the Pacific Islands
to meet emergency community development needs caused by federally -recognized disasters (not more
than one-fourth of total amount reserved for each year available for this purpose)
. to correct inequities resulting from the title's allocation provisions.
Loans. HUD is authorized to guarantee obligations issued by grant recipients (or public agencies
designated by them) to finance acquisition or assembly of real property (and related expenses) to serve or be
used in carrying out eligible activities which are identified in the application and for which grants under this
title have been or are to be made. HUD will (1) reserve out of grant funds for that recipient at least 110
percent of estimated difference between acquisition costs and disposition proceeds, (2) receive a local pledge
of full faith and credit or revenues for the replacement of excess over amount reserved, and (3) receive local
pledges of future grant proceeds of any additional sums not otherwise repaid. Guarantee obligations are to be
taxable or tax free at the option of the issuer. If taxable, HUD will make grants to the issuer for up to 30
percent of net interest cost.
Reporting Requirements. HUD will make an annual report to Congress concerning the progress made in
accomplishing program objectives and use of funds during the preceding year.
Consultation. HUD is required to consult with other Federal agencies in carrying out the provisions of the
community development program.
Labor Standards. The prevailing wage requirements of the Davis -Bacon Act apply to work by all laborers
and mechanics employed on any construction funded under the title except for rehabilitation of residential
property involving fewer than eight units.
Interstate Agreements. Congressional consent is given to two or more States to enter into agreements and
establish agencies for cooperative effort concerning interstate and local community development planning and
programs.
Transitional Authorizations. "Such sums as may be necessary" are authorized for urban renewal and
model cities Programs for FY 1975. Amounts received pursuant to these authorizations will be offset against
first year entitlement or "hold -harmless" amounts received by localities out of FY 1975 block grant funds.
Close-out of Urban Renewal Projects. The Secretary is authorized to apply up to 20 percent of the grants
made or to be made to the locality under the title toward repayment of outstanding temporary urban renewal
loans where (1) he determines, after consultation with the local renewal agency and the chief executive officer
of the locality, that an urban renewal project cannot be completed without additional capital grants, or (2)
the local public agency makes an appropriate request. The Secretary may apply a higher percentage of a
locality's allocation upon the request of the recipient.
In addition, upon application of the local renewal agency and approval of the locality, the Secretary may
0
approve a financial settlement of an urban renewal project where he finds that there will be surplus of capital
grants after payment of temporary,,. loan indebtedness. He.. may authorize the locality to transfer any such
surplus for use under the title. ,
® Advances. HUD is authorized to make advances to metropolitan cities, urban counties and "hold -
harmless" cities of up to 10 percent of their first year (FY 1976) entitlements for use in continuing urban
renewal or model cities programs, or preparing for implementation of the block grant program.
Nondiscrimination and Remedies for Noncompliance. The new law expressly prohibits discrimination on
the basis of race, color, national origin, or sex under the community development program. If discrimination
is found, HUD must notify the chief elected official of the grant recipient, and request compliance. If
compliance is not secured within 60 days, HUD may refer the matter to the Attorney General for suit;
exercise the powers under Title VI of the 1964 Civil Rights Act; terminate, reduce, or limit the availability of
grant payments; or take other legal action.
If after a hearing it finds substantial noncompliance, on the basis of discrimination or otherwise, with any
provision of this title, HUD may terminate, reduce, or limit the availability of grant payments to the recipient
until the noncompliance is remedied. Suits by the Attorney General are authorized to recover payments in
lieu of, or addition to, reduction, termination, or limitation of grant payments by HUD.
Employment Opportunities for Lower-income Persons. To the greatest extent feasible, training, employ.
ment, and work opportunities available under block grant programs are to be given to lower-income residents
and business concerns located in areas of program activities.
PUBLIC HOUSING AMENDMENTS
The new measure revises the law governing the low -rent public housing program (eliminating some
provisions and altering others), provides additional annual contributions contract authority, and authorizes a
new lower-income housing assistance program under the revised law. Among the many changes from prior law
are the following:
Contract authority. Additional annual contributions contract authority of $1.225 billion per annum is
made available in the current fiscal year. At least $150 million of the additional authority is to be reserved for
the development of housing owned by public housing agencies, with at least 50 percent of the units assisted
with reserved funds required to be other than under the new program.
Also, at least $15 million per annum of the aggregate subsidy authorization available in FY 1975
(increased to at least $30 million in FY 1976) is to be set aside for Indians other than under the new
program, and operating subsidies are required to cover "approved" operating cost deficits of projects financed
with set-aside funds.
Operating subsidies. Operating subsidies are separately authorized, but are limited to $500 million per
annum of the aggregate FY 1975 contract authorization, increased by $60 million in FY 1976.
Operating subsidies are to be provided for in annual contributions contracts, subject to the availability of
funds. For purposes of paying such subsidies, the Secretary is directed to establish costs of project operation
and reasonable projections of income, based either on actual project characteristics or on prototype
well-managed project performance criteria.
Eligibility and occupancy. The measure continues the provision authorizing public housing agencies to fix,
subject to approval by the Secretary, income limits for occupancy and rents in traditional public housing.
However, it deletes the requirements for (1) a gap of at least 20 percent between the highest income limits for
admission and the lowest unassisted rents and (2) income limits for continued occupancy in projects.
Definition of income. Family income is redefined. For families in units assisted under the new
lower-income housing assistance program, details of which are outlined below, income is defined as total
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® family income. For families in regular public housing, income, for purposes of the Brooke I limitation,
continues to be adjusted in accordance with a statutorily prescribed formula which has been revised by
eliminating double deductions for secondary wage earner spouses, clarifying deductions for dependents,.
eliminating deductions for heads of households or their spouses, and adding a deduction for foster child care
payments made to a family.
Definition of family. The law makes eligible for occupancy two or more single elderly, disabled, or
handicapped individuals living together, or one or more such individuals living with another person determined
essential to their well-being.
Minimum rents. A requirement is added under which every family in regular public housing is required,
regardless of the size of its income, to contribute at least 5 percent of its gross income to rent; if the family
receives a welfare payment a part of which is specifically designated for housing, the family's minimum rent is
to be the higher of 5 percent of gross income or the amount so designated. However, increased rents for
public housing tenants required as a result of amendments effected by the statutory revisions—other than the
welfare payment provision—are to be phased in at a rate of not more than $5 every 6 months.
For families in the new program, the lowest possible contribution to rent is to be 15 percent of total
family income, with the Secretary authorized to establish a higher required contribution level (up to 25
percent of total family income) for certain classes of families (see below).
Also, the aggregate minimum rental required to be paid in any year by families in any project
administered by a public housing agency receiving operating subsidies is to be an amount at least equal to 20
percent of the sum of the incomes of all such families.
Management practices. Public housing agencies are to be required to establish (1) tenant selection criteria
to assure an income mix in projects (but waiting for higher income tenants where lower income tenants are
available is not to be permitted), (2) procedures for prompt rent payments and evictions for nonpayment, (3)
effective tenant -management relationships to assure tenant safety and adequate project maintenance, and (4)
viable homeownership opportunities.
Also, at least 20 percent of families in any project placed under annual contributions in any fiscal year
beginning after the effective date of the requirement are required to have incomes not in excess of 50 percent
of area median income.
Homeownership. Homeownership for public housing tenant families will be facilitated by authorizing the
sale of projects to tenants (and the purchase and resale to tenants of structures under section 8) and the
continuation of up to debt service annual contributions with respect to units sold to tenants.
Lower-income housing assistance program. The law authorizes a new lower-income housing assistance
program to be implemented not later than January 1, 1975. The new program authority replaces existing
authority for assistance with respect to low-income housing in private accommodations (section 23). Major
features of the new program (contained in section 8 of the proposed revised U.S. Housing Act of 1937) are as .
follows:
. Assistance will be provided on behalf of eligible families occupying new, substantially rehabilitated, or
existing rental units through assistance payments contracts with owners (who may be private owners,
cooperatives, or public housing agencies, which are broadly defined to include agencies assisting in the
development or operation of low-income housing as well as those directly engaged in such activities).
. Eligible families are those who, at the time of initial renting of units, have total annual family incomes
not in excess of 80 percent of area median income, with adjustments for smaller and larger families, but the
Secretary of Housing and Urban Development may establish higher or lower income ceilings if he finds such
variations necessary because of prevailing levels of construction costs, unusually high or low family incomes,
or other factors,
. Major responsibility for program administration is vested in the Secretary of Housing and Urban
Development, who can contract directly with owners or prospective owners (which may be public housing
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agencies) who agree to construct or substantially rehabilitate housing. In the case of existing units, public
housing agencies will contract with owners, except that the Secretary may do `so diroctly where no public
housing agency has been organized or where he determines a public housing agency is unable to implement
® the program.
Assistance payments contracts will specify the maximum monthly rent which may be charged for each
assisted unit. Maximum rents may not exceed by more than 10 percent a fair market rent established by the
Secretary periodically but not less than annually for existing or newly constructed rental units or various sizes
and types suitable for occupancy by eligible families, except that maximum rents may exceed fair market
rents by up to 20 percent where the Secretary determines that special circumstances warrant or that such
higher rents are necessary to implement an approved housing assistance plan. Fair market rent schedules will
be published for comment prior to being implemented by publication in the final form in the Federal
Register.
. The amount of assistance provided with respect to a unit will be an amount equal to the difference
between the established maximum rent for the unit and the occupant family's required contribution to rent.
. Aided families will be required to contribute not less than 15 nor more than 25 percent of their total
family income to rent, with the Secretary authorized to establish required contribution i^ve!s, taking into
consideration the family's income, the number of minor children in the household, and the extent of medical
or other unusual expenses incurred by the family; however, the required contribution level will be statutorily
fixed at 15 percent of total income for (1) very large families with total incomes of between 50 and 80
percent of area median income, (2) large families with total incomes not over 50 percent of area median
income, and (3) families with exceptional medical or other expenses.
. At least 30 percent of the families assisted with annual contract authority allocations must be families
with gross incomes not in excess of 50 percent of area median income, subject to adjustment by the
Secretary.
. Maximum rent levels will be adjusted annually or more frequently to reflect changes in fair market
rentals established for the area for similar sizes and types of dwelling units or, if the Secretary determines, on
the basis of a reasonable formula. Also, the Secretary will make additional adjustments to the extent he
determines such adjustments are necessary to reflect increases in the actual and necessary expenses of owning
and maintaining the units which have resulted from substantial general increases in real property taxes, utility
rates, or similar costs which are not adequately compensated for by the annual adjustments. However, rent
adjustments may not result in material differences between rents for assisted and comparable unassisted units.
. Up to 100 percent of the units in a structure may be assisted, upon application of the owner or
Prospective owner, but in cases involving projects containing more than 50 units which are designed for use
primarily by nonelderly and nonhandicapped persons, the Secretary may give preference to projects involving
not more than 20 percent assisted units.
. Assistance payments for any unit may run for a minimum period of one month and for the following
maximum periods. In the case of existing units, payments may be made for as long as 180 months. In the
case of new or substantially rehabilitated units, payments may be made for up to 240 months (except that if
the project is owned by, or financed by a loan or loan guarantee from, a.State or local agency, payments may
run for as long as 480 months).
. Owners of new or substantially rehabilitated assisted units will assume all ownership, management, and
maintenance responsibilities, including the selection of tenants and the termination of tenancy, but the owner
may contract for such services with any entity, including a public housing agency, approved by the Secretary
for the performance of such responsibilities. Owners of existing units also will select tenants, but selections are
to be subject to annual contributions contract requirements, and public housing agencies will have the sole
right to give notice to vacate, although owners will have the right to make representations to the agency. Also,
maintenance and replacement with respect to existing units will be in accordance with standard practice for
the building concerned and the owner and the public housing agency may carry out other terms and
conditions upon mutual agreement.
. Assistance may be continued with respect to unoccupied units, but only for up to 60 days if a family
vacates before its lease is up or where a good faith effort is being made to fill an unoccupied unit.
. The Secretary is directed to take such steps as may be necessary to assure that assistance payments are
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increased on a timaly basis to cover increases in maximum monthly rents or decreases in family incomes. Such
steps are to include the making.of assistance payments contracts in excess of the amounts required at the time
of the initial renting of units, the reservation of annual contributions authority to amend housing assistance
contracts, or the allocation of part of new authorizations to amend such contracts.
. Newly constructed or substantially rehabilitated dwelling units to be assisted under the program are to
be eligible for mortgage insurance under FHA programs; and assistance with respect to such units may not be
withheld or made subject to preferences because of the availability for such units of mortgage insurance on a
co-insurance basis or by reason of the tax exempt status of the bonds or other obligations to be used io
finance such construction or rehabilitation.
. Assistance is to be available with respect to (1) units in cooperatives (occupancy charges are to be
deemed to be rent for purposes of making assistance payments) and (2), in accordance with regulations of the
Secretary, some or all of the units in a section 202 project for the elderly or handicapped.
. Davis -Bacon Act labor standards requirements will apply to new construction or substantial rehabilita-
tion projects containing nine or more units.
Other provisions permit local housing authority bonds with flexible maturities and balloon payments to
finance public housing projects; and prohibit HUD from applying new administrative policies to projects in
derogation of rights of an owner under a lease entered into prior to establishment of the policy.
The measure authorizes the Secretary to make the new provisions effective up to 18 months following
enactment. However, as previously noted, the new lower-income housing assistance program must be put into
effect no later than January 1, 1975. Also, provisions relating to adjusted family income, minimum rents, and
a requirement that at least 20 percent of the families in any project other than under the new program be
very low-income families must be implemented on a single date (not necessarily January 1, 1975), and
provisions relating to debt service and operating subsidy authorizations also must be implemented on a single
date.
HOUSING FOR THE ELDERLY
Project standards. The Secretary of HUD is directed to consult with the Secretary of HEW to insure that
special projects for the elderly or handicapped authorized pursuant to the public housing statute meet
acceptable design standards, provide quality services and management, contain such "related facilities" as may
be necessary to accommodate special needs of intended occupants, and are in support of and supported by
applicable State and area plans.
Section 202 program. The measure revises the section 202 direct loan program for housing for the elderly
and handicapped. Major changes include:
. loans made at rate equal to Treasury borrowing rate plus adequate allowances for administrative costs
and probable losses.
• eligibility for occupancy expanded to include developmentally -disabled individuals.
. directions to the Secretary to seek to assure that housing and related facilities assisted under the
program are in support of, and supported by, applicable State and local plans responding to Federal
requirements for provision of an assured range of necessary services for occupants.
. authority for the Secretary to issue notes for purchase by the Secretary of Treasury in the aggregate
amount of $800 million.
. limiting lending to aid in development of 202 projects in any fiscal year to the limits on such lending
authority established for such year in appropriation Acts.
. requiring the Secretary to consider the availability of assistance under the section 8 program when
determining section 202 project feasibility.
. requiring the Secretary to assure that projects aided under both section 202 and the section 8 program
serve both low- and moderate -income families in a mix appropriate for the area and viable project operation.
0
0 MORTGAGE CREDIT (FHA) AMENDMENTS
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The new law makes a variety of changes in FHA authorities, although it does not involve (as had been
proposed) a complete rewriting and consolidation of the National Housing Act. Specific amendments include
the following:
Increases in mortgage limits. FHA mortgage insurance limits are increased as follows:
. Basic single-family home mortgage limits are increased about 36 percent (from $33,000 to $45,000).
. Mortgage limits are increased about 20 percent for the lower income nonsubsidized section 221(d)(2)
program and for the subsidized homeownership section 235 program.
Basic multifamily per unit mortgage limits are increased about 30 percent.
The per unit mortgage limits are increased about 20 percent for the sections 22 i %uj(3) and 23E
multifamily lower income subsidy rental programs.
Overall- project mortgage limits. Overall maximum project mortgage dollar limits previously applicable
under FHA multifamily, group practice, hospital, nursing home, and land development programs are removed.
Energy conservation. The Secretary is required to promote the use of energy saving techniques through
minimum property standards established for newly constructed residential housing subject to mortgages
insured under the National Housing Act.
Co-insurance demonstration program. A new FHA co-insurance authority is established and contains the
following major features:
(1) Usage and liability—Use is optional with lenders, who must assume at least 10 percent of any loss,
subject to a limitation on overall liability for catastrophic losses.
(2) Expiration of authority—June 30, 1977.
(3) Limits on use—The aggregate principal amount of coinsured mortgages and loans may not exceed 20
percent of the aggregate dollar amount of all home mortgages insured and 20 percent of the aggregate dollar
amount of all multifamily mortgages insured.
(4) Sharing of premiums—The sharing of premiums between HUD and lenders is required to be on an
actuarially sound basis.
(5) Consumer protections—Construction under the demonstration program must be inspected to ascertain
whether minimum standards applicable under the regular program are met. HUD must consult with the
mortgage lending industry to determine that the demonstration does not disrupt the mortgage market or make
100 percent mortgage insurance unavailable to those who need it. HUD may not withdraw, deny, or delay
insurance under other programs because of the availability of co-insurance.
(6) Reports—HUD is required to report by March 1, 1975, and annually thereafter, describing the results
of co-insurance experiments and presenting recommendations.
Section 235 program. Insurance authority for this subsidized homeownership program is extended for 2
years only. The amount of unused contract authority previously approved in appropriation Acts is available
for 1 year from enactment and then will lapse. Any additional contract authority is subject to approval in
appropriation Acts. Other amendments include:
. Continuation of HUD's authority to use up to 30 percent of funds for existing units;
. Income limits set at 80 percent of median income for the areas (rather than limits related to public
housing admission limits);
Authority to insure advances of mortgage proceeds with respect to property constructed or rehabili-
tated pursuant to a self-help program; and
. Minimum downpayment requirements increased to 3 percent of value.
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Section 236 program. Insurance authority on this program is extended for 2 years only, $76 million is
authorized in fiscal *1975. HUD is expected' to approve`commitement of these additional funds where a
community has identified its special housing needs and demonstrated that such needs cannot be met through
the lower-income housing assistance program. Further amendments Include:
additional assistance for tenants who cannot pay the basic subsidized rental charge with 25 percent of
their income (i.e., rents for 20 percent of the units may be reduced to as little as the cost of utilities of the
units); '
. authority for increased subsidies to meet higher operating costs resulting from increased taxes or utility
costs;
• a requirement that at least 20 percent of funds be allocated to projects for elderly or handicapped;
. a requirement that at least 10 percent of funds be used for rehabilitation projects;
provision for reducing tenant contributions toward rent from 25 percent of income to as low as 20
percent where utilities are billed separately;
. income limits set at 80 percent of median income for area;
. removal of 10 percent project limitation on number of nonelderly single persons who may be
subsidized;
. authority for HUD to contract with State or local agencies to monitor the management of assisted
projects.
Insured advances. The measure authorizes insured advances of mortgage proceeds for projects during
construction to cover cost of building components prior to delivery to construction site.
Compensation for defects. Compensation for structural defects in existing homes is extended to cover
two-family homes. Compensation is to be made available to owners of properties located in older, declining
urban areas and which are covered by mortgages insured under section 203 or 221 during the period August
1, 1968 through December 31, 1972, Further, to qualify for compensation, a defect must so seriously affect
use and livability as to create a serious danger to the life or safety of the inhabitants.
Allocation of housing subsidies. The measure provides a mechanism for disbursement of housing assistance
funds:
. Urban -rural split. At least 20 but not more than 25 percent of funds will go to nonmetropolitan areas.
. Basic allocation criteria. HUD will allocate funds on basis of objective criteria (e.g., population,
poverty, housing conditions and vacancies) modified as necessary to fulfill approved local housing assistance
plans submitted as part of community development application or otherwise.
. Local approval. Localities with approved housing assistance plans will review applications for con-
sistency with plan. HUD may disregard a local objection and approve the applications, if the Secretary finds
that the application is consistent with the housing plan. Local approval will not be required where an
application involves:
(1) 12 or fewer units in a single project or development;
(2) housing in approved new communities where HUD determines such housing is necessary to meet new
community housing requirements; or
(3) housing financed by State loans or guarantees except if local housing assistance plan contains an
objection to their exemption.
Where there is no local plan, HUD must consider any State plan,
Exparimental financing. The measure authorizes, until June 30, 1976, demonstration of experimental
financing techniques involving rates of amortization corresponding to anticipated variations in family income.
Insurance under this provision is limited to one percent of the total dollar amount of all mortgages insured
under Title 11 of the National Housing Act
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Counseling. Homeownership and tenant counseling are authorized, subject to appropriations.
Property improvement and mobile home loan program. The measure makes the following amendments to
prior authority under the National Housing Act with respect to property improvement and mobile home
loans:
. Maximum property improvement loans amounts are increased for multi -unit structures from 515,000 to
525,000.
• HUD will determine maximum loans and term for fire safety equipment in health facilities.
• Property improvement loans may finance the provision of energy conserving improvements or solar
energy systems.
Loans to finance purchase of mobile home lots and preparation of such lots are authorized.
Unsubsidized home mortgages—down payments. Loan -to -value ratios are increased to:
97 percent of first $25,000 of value;
90 percent of value between $25,000 and $35,000; and
80 percent of value over $35,000.
Unsubsidized multifamily mortgages. The measure makes the following amendments to unsubsidized
multifamily insuring authorities:
-Management cooperatives. The loan -to -value ratio for management cooperatives is increased from 97
percent to 98 percent.
'Existing properties. The insurance of mortgages to finance purchase of existing multifamily projects or
refinancing of mortgages on existing projects is authorized.
Dormitory -style housing. The insurance of mortgages on "dorm itory-type" projects is authorized.
Public housing agencies. Public housing agencies are made eligible mortgagors of projects for which
mortgages are insured under section 221(d)(3), if the project receives assistance under the new lower-income
housing assistance program. Interest on such mortgages is to be taxable.
Group practice facilities. The following amendments are made in prior authority to insure mortgages for
group practice facilities:
The program is enlarged to cover facilities for the practice of osteopathy.
Also authorized is assistance with respect to medical facilities with as few as one medical professional
in certain rural areas, small towns, and low-income urban areas.
Supplemental project loans. Prior authority is amended to authorize insured supplemental loans for
repairs, improvements, or additions to multifamily projects or health facilities not covered by FHA -insured
mortgages.
Land development. Prior authority is amended by increasing the loan -to -value ratio on land development
mortgages to the sum of 80 percent of the estimated value of land before development and 90 percent of
estimated cost of development.
Dispositions of FHA -acquired properties to cooperatives. Prior authority is clarified by describing the
authority of the Secretary to finance sales of acquired properties to cooperatives with 100 percent purchase
money mortgages computed on the basis of use of the property as a cooperative. The Secretary may repair
such projects prior to sale.
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Extension of regular (unsubsidized) FHA authorities. Unsubsidized FHA programs are extended through
June 30, 1977.
Flexible interest rate authority. HUD's authority to set interest rates to meet the mortgage market is
extended through June 30, 1977.
Housing for military personnel. The measure authorizes insurance of home and multifamily mortgages
with respect to housing for military or other personnel assigned to military bases where residual housing
requirements are inadequate to sustain housing in event of substantial curtailment of base employment.
Insurance under this section is to be the obligation of the Special Risk Insurance Fund.
COMPREHENSIVE PLANNING GRANTS
The new law revises section 701 of the Housing Act of 1954 and amends title VIII of the Housing and
Urban Development Act of 1964. Major features of the revised section 701 include the following:
Eligible grantees. Grantees may be:
States for planning assistance to local governments,
States for State, interstate, metropolitan, district, or regional activities,
cities of 50,000 or more,
urban counties as defined in the community development title,
metropolitan areawide organizations,
Indian tribal groups or bodies, or
other governmental units or agencies having special planning needs.
Eligible Activities. Activities which may be undertaken with grant money include those necessary to
develop and carry out a comprehensive plan, to improve management capability to implement the plan, and to
develop a policy -planning evaluation capacity to determine needs and goals and develop and evaluate
programs.
Program requirements.
. Each recipient must carry out an on-going comprehensive planning process. Biennial review of the plan
is required as well as provision for citizen participation where major plans, policies, or objectives are
determined. All plans must provide at a minimum:
(1) a housing element which takes into account all available data so that the housing needs of the areas
studied in the plan will be adequately covered in terms of existing and prospective population growth.
Formulation of State and local goals pursuant to title XVI of the Housing and Urban Development Act of
1968 is required.
(2) a land use element which includes (a) studies, criteria, and procedures necessary for guiding major
growth decisions and (b) general plans with respect to the pattern and intensity of land use for residential,
commercial, and other activities.
These elements must specify broad goals and annual objectives, programs, and evaluation procedures and
be consistent with each other and stated national growth policies. With the exception of Indian tribes and
agencies qualifying for direct grants because of special planning needs, recipients will be ineligible for further
grants after three years from the date of enactment if the planning being carried out by the recipients does
not include the above elements.
. Recipients are to be required to employ professionally competent persons to carry out assisted
activities.
To the maximum extent feasible, assisted activities must cover entire areas with related development
13
problems; use of existing plans and studies is required.
. Recipients must make reasonable progress in the development of comprehensive planning elements.
® Special Purpose Activities. HUD also may make grants to certain recipients to develop and implement
plans for controlling major growth decisions and to survey sites and structures of historical and architectural
value; and to organizations of government officials to make studies and develop and implement areawide
plans.
Applications. After initial application, an applicant must submit annually a work program for the
succeeding year (including intended changes) and biennially an evaluation of the prior two year's progress
(including changes in objectives).
Local contributions. With the exception of grants for developing and implementating plans for controlling
major growth decisions, which can cover up to 80 percent of costs, grants may not exceed two-thirds of the
estimated cost of the work for which the grant is made.
Authorizations. $130 million for fiscal year 1975 and $150 million for fiscal 1976 are authorized.
Funds for Research and Demonstration Projects. Up to $10 million plus 5 percent of appropriations is
available from amounts appropriated for research and demonstration projects.
Technical Assistance. HUD may provide technical assistance and make studies and publish information on
planning and related management problems.
Interstate Agreements. The consent of Congress is given to two or more States to enter into agreements,
cooperative efforts and mutual assistance in comprehensive planning for growth and development of interstate,
metropolitan or urban planning.
Limitations on Use of Funds. Funds may not be used to defray the cost of acquisition, construction, or
rehabilitation of or preparation of engineering drawings or detailed specifications for specific housing, capital
® facilities, or public works projects.
Consultation With Other Federal Agencies. HUD is directed to consult with other Federal agencies having
responsibilities relating to comprehensive planning, with respect to general standards and -procedures, and
specific grant activities of interest to such agencies.
Joint Funding. The title provides for joint use of funds obtained under two or more Federal assistance
programs for approved planning and related management activities, subject to regulations prescribed by the
President.
Comprehensive planning definition. The definition in prior law is expanded to include—
. (1) identification and evaluation of area needs and formulation of specific programs to meet these
needs, and
. (2) surveys of structures and sites of historic or architectural value.
Extension of Program to the Trust Territory of the Pacific Islands. The Trust Territory of the Pacific
Islands is made eligible to receive grants under the section.
Amendments to Title VIII of the Housing and Urban Development Act of 1964 (Training and
Fellowships). The following amendments are made to title VIII of the HUD Act of 1964:
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® Title Vlll urban fellowship program is expanded to include not only urban and housing "specialists"
but those with a "general capacity in urban affairs and problems."
. HUD is authorized to make grants directly to institutions of higher learning to assist them in
developing, improving, and carrying out programs for preparation of graduate or professional students in city,
regional planning and management housing and urban affairs or in research into improving methods of
education in such professions.
. Title Vill's annual appropriations limit is increased by $3.5 million on July 1, 1974 and by an equal
amount on July 1, 1975.
RURAL HOUSING
The new law makes a number of changes in existing law. Specific amendments include the following:
Extension of rural housing programs. Participation in rural housing programs is extended to the territories
and possessions of the United States (including Guam) and the Trust Territory of the Pacific Islands.
Refinancing of indebtedness. Authorization for financial assistance to refinance indebtedness is extended
to include those cases where such indebtedness is combined with a loan for improvement, rehabilitation, or
repairs and if not refinanced is likely to cause hardship for the applicant. The applicant must have incurred
indebtedness at least 5 years prior to his application for refinancing. The amendment allows FmHA to
refinance debts held or insured by the United States or a Federal agency.
Loans to leasehold owners. Leasehold owners are made eligible for financial assistance under all rural
housing programs authorized by Title V of the National Housing Act.
Escrow accounts. The Secretary of Agriculture is authorized to establish procedures whereby he
administer escrow accounts for the periodic payment of taxes, insurance, and other necessary expenses which
the Secretary may deem appropriate, at the option of FmHA borrowers.
Rehabilitation loans and grants. The maximum amount of assistance to any individual in the form of a
loan, grant, or combined loan and grant is increased to $5,000. Any loan amount must be secured and
repayable within 20 years except that a loan for less than $2,500 may be evidenced only by a promissory
note. The term "rural" is substituted for the word "farm" to extend the program to non-farm dwellings.
Research and study programs. The Secretary of Agriculture is authorized to contract for rural housing
research with private or public organizations if he determines that research work and study cannot feasibly be
performed by the Department of Agriculture or by land-grant colleges.
Veterans Preference. Veterans Preference is extended to those persons who served after the Korean
Conflict (January 31, 1955 to August 4, 1964) or during the Vietnam era (as defined in 38 U.S.C. 101 (29)).
Utilization of county committees. The use of county committees to examine applications for assistance is
limited to those applicants involved in the operation of a farm.
Assistance Authorizations. Authorizations are increased as follows:
(a) Section 504 rehabilitation loans and grants are increased by S30 million (providing cumulative
authorization of $80 million) for the period ending June 30, 1977.
(b) Section 516 farm labor housing is increased by $30 million (providing cumulative authorization of
$80 million) for the period ending June 30, 1977.
(c) Section 506 research grants are increased to $1 million per year for the period ending June 30, 1977.
(d) Section 523 mutual and self-help housing loans and grants authorizes annual appropriations of up to
$10 million for FY 1975, FY 1976 and FY 1977.
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The authorization period of Section 515 loans for rental or cooperative housing and related facilities for
the elderly and section 517 insured rural housing loans is extended to June 30, 1977.
® Maximum Loan Amount for Rental Housing for the Elderly. The maximum loan amount is the development
cost or the value o: the security, whichever is less •• Pment
The
initial operating expenses of up to 2 percent of certain stated costs.velopment costs is redefined to include
Definition of "rural" area. The definition of "rural" area is expanded to include places with a population
in excess of 10,000 but less than 20,000 which is not contained within a SMSA and which has a serious lack
Of mortgage credit as determined by the Secretary of Agriculture and the Secretary of HUD.
Subsidy and Assistance Payments for Low -Income Persons and Families. The Secretary of Agriculture is
authorized to make and insure loans under the rural housing loan programs to provide rental or cooperative
housing and related facilities for low-income persons who reside in multifamily housing projects. Assistance
Payments to owners of such rental housing are authorized to make housing available to low-income occupants
at a rate commensurate to income and not exceeding 25 percent of income. Assistance pdyroents are to be
made on a unit basis and may not be made for more than 20 percent of the units in a project except that (1)
projects financed by a section 515 elderly housing loan, a section 514 domestic farm labor housing loan, or a
section 516 domestic farm labor low -rent housing grant may receive assistance for up to 100 percent of the
units; and (2) assistance payments for more than 20 percent of project units may be made when the Secretary
determines such action is necessary or feasible. The Rural Housing Insurance Fund will be reimbursed by
annual appropriations in the amount of assistance payments as described above.
Mutual and self-help housing. The Secretary of Agriculture is authorized to make advances from the
Self -Help Housing Land Development Fund to recipients of self-help housing grants to establish revolving
accounts for purchase of land options. Such advances are to bear interest at a rate determined by the
Secretary. The Secretary is directed to issue rules and regulations concerning the application process and the
rights of grantees in those situations where grant assistance is ended prior to the grant agreement termination
date.
Site loans. The section 524 site loan program is expanded to permit public or non-profit organizations to
acquire sites to be sold to families, nonprofit organizations to acquire sites to be sold to families, nonprofit
organizations, public agencies, and cooperatives eligible for assistance under Title V of the Housing Act of
1949, or any other law which provides for housing financial assistance.
Technical and supervisory assistance. The Secretary of Agriculture is authorized to make grants to or
contract with private or public nonprofit entitles to pay the cost of the development and administration of
comprehensive technical and supervisory assistance programs designed to aid low-income persons in benefitting
from Federal, State, and local rural housing programs. Preference in application is to be given to those
programs sponsored by a non -Federal entity or public body.
The Secretary also is authorized to make loans to such nonprofit entities for the necessary expenses, prior
to construction, of planning and obtaining financing for the construction or rehabilitation of low-income
housing built under a Federal, State, or local rural housing program.
Appropriations are authorized for use in FY 1975 and FY 1976 in amounts not to exceed $5 million for
each of the purposes described above. Amounts appropriated are to be available until expended; amounts
authorized but not appropriated may be appropriated for any succeeding fiscal year. All funds appropriated
are to be deposited in a low-income sponsor fund and will be available without fiscal year limitation.
Condominium housing. The Secretary of Agriculture is authorized, in his discretion and upon terms and
conditions (substantially identical insofar as feasible with those specified in section 502) as he may prescribe,
to make and insure loans to low and moderate income persons and families to cover a one -family dwelling
unit in a condominium located in rural areas. The Secretary also is authorized, in his discretion and upon
terms and conditions (substantially identical insofar as feasible with those specified in section 515) as he may
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prescribe, to make or insure blanket loans to a.borrow0 who certifies that upon completion of a multifamily
housing project, (1) each family unit will be eligible for a loan or insurance and (2) each dwelling unit will be
sold only on a condominium basis and sold only to purchasers eligible for a loan or insurance.
Transfer of liabilities. Notes held by the Agricultural Credit Insurance Fund (7 U.S.C. 1929) which
evidence loans for housing and related facilities for domestic farm labor, and loans for rental or cooperative
housing related facilities for the elderly are to be transferred to the Rural Housing Insurance Fund. The Fund'
will compensate the Agricultural Credit Insurance Fund for the aggregate unpaid principal balance plus
accrued interest of the notes so transferred.
Mobilo homes. The term "housing" as used in Title V of the 1949 Housing Act is broadened to include
mobile homes and mobile home sites, The Secretary is directed to prescribe minimum property standards for
mobile homes and the sites upon which they are to be located. Loans for the purchase of mobile homes and
sites are be be made under the same terms and conditions as applicable under section 2 of the National
Housing Act to obligations financing the purchase of mobile homes and sites.
Contract services and fees. The authority of the Secretary to utilize the Rural Housing Insurance Fund is
expanded to permit the Secretary to pay from the Fund is expanded to permit the Secretary to pay from the
Fund for services customary in the construction industry, construction inspections, commercial appraisals,
servicing of loans, and other related program services and expenses.
State and local agencies. State and local public agencies are made eligible to participate in any rural
housing program if those persons to be served by the applicant would be eligible to participate in the
particular program under which assistance is sought.
MOBILE HOME CONSTRUCTION AND SAFETY STANDARDS
The new law includes a new "National Mobile Home Construction and Safety Standards Act of 1974".
Under that Act, the Secretary, after consultation with the Consumer Product Safety Commission, is required
to issue Federal mobile home construction and safety standards to improve the quality and durability of
mobile homes, taking into consideration existing State and local laws.
to Other provisions include the following:
(1) National Mobile Home Advisory Council. The Secretary is required to establish a 24 -member
National Mobile Home Advisory Council which is to be consulted, to the extent feasible, before the
establishment, amendment, or revocation of any mobile home construction or safety standard.
(2) Enforcement of standards. Promulgated standards may be enforced by HUD directly, through
injunctive action by the Attorney General, or through state enforcement. HUD is authorized to conduct
factory inspections and obtain records and documents for the purpose of enforcing such standards.
(3) Correction of Defects. If a mobile home does not conform to a Federal safety standard, the
manufacturer will have to repurchase the home or bring it up to standard.
(4) State Role. The Secretary is authorized to make 90 percent grants to States to assist in identifying
needs and responsibilities in the subject area and in developing State enforcement plans. The Secretary must
approve a State plan before its provisions may be used to enforce construction and safety standards. After
approving a State plan, the Secretary has the discretion to continue to carry out his functions under the title
in that State.
(5) Prohibited Acts. The Act prohibits the use of the mails and of interstate commerce to sell or lease or
offer for sale or lease mobile homes which do not meet safety standards promulgated under the Act. Failure
to yield records, to provide required notifications of defects, to issue required certifications or to comply with
final Secretarial orders are also prohibited acts. Civil and criminal penalties also are provided where violation
of such prohibitions occur.
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U
Defects. Manufactrers are
equired to furnsh notice of
efects
ich
igh
consti
6)Notice safetyhazarto of
d alersUand therSecretary. The,manufa turerdmut oh ectmthetdefectsife it
® presented an unreasonable risk of injury or death.
(7) Research. HUD is authorized to conduct research, testing, and development and is required to report
on mobile home safety and disposal problems of used mobile homes.
Act. (8) Appropriations. Appropriations are authorized in sums necessary to carry out the provisions of the
CONSUMER HOME MORTGAGE ASSISTANCE
The new law includes a new "Consumer Home Mortgage Assistance Act of 1974." Its provisions are as
follows:
Part A. Lending and Investment Powers of Federal
Saving and Loan Associations .
(1) Construction loans
Savings and Loans are authorized to make line of credit construction loans on residential real estate relying on
borrower's general credit rating or other security. Such loans may not exceed the greater of (a) the sum of
surplus, undivided profits, and reserves or (b) 3 percent of assets.
(2) Single-family dwelling limitations
Home Loan Bank Board (FHLBB) is authorized to increase loan limits on
The maximum loan amount for single-family dwellings is increased from S45,000 to $55,000. The Federal
Hawaii by up to 50 percent above the present $45,000 limit. dwellings in Alaska, Guam, and
® (3) Increased lending authority
S&Ls are authorized to invest, subject to FHLBB conditions, in loans, advances of credit, and interests therein
for primarily residential purposes without regard to limitations in existing law. Such investments may not
exceed 5 percent of an association's assets.
Ll
(4) Property improvement loans
The maximum amount for property improvement loans is increased from $5,000 to $10,000.
(5) Loans from State mortgage finance agencies
S&Ls are authorized to borrow funds from State mortgage finance agencies and to reloan such borrowings at
an interest rate which exceeds by not more than 1% percent the rate paid to mortgage finance agencies. The
authority is subject to FHLBB regulations and is limited to the same extent as State law permits
State -chartered S&Ls to borrow from mortgage finance agencies.
Part B. National Banks
The real estate lending authority of national banks is revised as follows:
(1) National banks are authorized to make various loan -to -value ratio loans secured by other first liens
where the lien, when added to prior liens, does not exceed applicable loan -to -value ratio for a particular type
of loan.
(2) National banks are not required to classify as real estate loans various loans insured, guaranteed, or
backed by the full faith and credit of the Federal government or a State.
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(3) Loans secured by roal ostate are to be considered real estate loans only in the amount of excess over
non -real estate security. Loans secured by a lion on real property where a financially responsible party agrees
to advance full amount of loan within 60 months are not to be considered real estate loans.
(4) National banks are prohibited from making real estate loans in an amount in excess of the greater of
unimpaired capital and surplus or time and savings deposits, except that real estate loans secured by other
than first liens, when added to unpaid prior liens, are to be limited to 20 percent of unimpaired capital and
20 percent of unimpaired surplus,
(5) National banks are authorized to make real estate loans secured by other than first liens upon forest
tracts.
(6) Loans with maturities of less than 60 months are to be classified as commercial loans when made for
construction of buildings and secured by a commitment to advance the full amount of the loan upon
completion.
(7) Loans for the construction of residential or farm buildings with maturities of not more than 9
months are eligible for discount as commercial paper if accompanied by an agreement for firm takeout upon
completion of building.
(8) Loans made upon a borrower's general credit standing or assignment of rent, and SBA participation
loans, are required to be classified as commercial loans.
(9) National banks are authorized to make real estate loans in excess of 70 percent of time and savings
deposits if the total unpaid amount loaned does not exceed 10 percent of the maximum amount that may be
invested in real estate loans.
Part C. Federal Credit Unions
e
(1) Lending and depositary authority
Federal credit unions are authorized to make loans to their own directors and members of supervisory credit
committees, subject to the approval of the board of directors where the loan amount exceeds S2500 plus
pledged shares. Credit
unions operating foreign sub -offices are authorized to maintain demand deposit
accounts in foreign banks which are correspondents U.S.
of mutual savings banks, subject to National Credit
Union Administration (NCUA) regulations.
(2) Foes
The mandatory entrance fee requirement is removed and a uniform entrance fee at discretion of the
credit
union board of directors is established.
(3) Directors
Various changes in the rules governing boards of directors have been made, such as permitting appointment
of
2 -member investment committees and, permitting executive committees to exercise authority delegated by
boards of directors.
(4) Supervisory committees
The law changes the semi-annual audit requirement to an annual requirement.
(5) Dividends
Dividends may be declared at intervals authorized by board of directors.
(6) Applicability to Trust Territories
The Federal Credit Union Act is made applicable to the Trust Territories of the Pacific.
(7) Definition of members accounts
Federally -insured credit union funds invested in a Federally -insured credit union are exempted from Federal
share insurance premium charges.
(8) Termination of insurance coverage
Federal insurance coverage is to be terminated after 90 days notice to the Federal Credit Union
Administration (FCUA) if
the credit union has obtained a certificate of insurance from the corporation
authorized and licensed to insured its accounts. Terminations be
are to approved by a majority of the board
of directors and a majority of voting members provided that a minimum 20 percent of the total
votes. membership
(9) Liquidation
The FCUA is authorized to assist in voluntary liquidation of solvent credit unions by loans,
purchase of assets,
or establishment of accounts in such credit unions. The provision which permitted such loans and accounts
to
be subordinated to the rights of members and creditors has been deleted.
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• Miscellaneous
The new law makes a number of other changes in prior law as well as introducing new authorities. These
changes and additions include the following:
E
Urban homesteading. The Secretary is authorized to transfer, without payment, certain Secretary -held real
property (deemed suitable by HUD) for use in an approved urban homestead program. Unoccupied
one -to -four family dwellings may be transferred for improvement to States or units of general local
government, or their public agency designees, upon their request for use in an urban homesteading program.
HUD Regional Offices are required to keep an inventory of property available for urban homesteading
purposes.
An acceptable urban homesteading program will provide for:
(1) the conditional conveyance of unoccupied residential property to an individual or family without
substantial consideration;
(2) an equitable procedure for selecting recipients of property;
(3) an agreement under which the recipient agrees to occupy the property for a minimum of three years,
make necessary repairs, and permit periodic inspections;
(4) an agreement of revocation of conveyance upon any material breach of the agreement and full
conveyance upon compliance; and
(5) a coordinated approach toward neighborhood improvement and upgrading of community facilities.
Appropriations are authorized in an amount not to exceed $5,000,000 annually for fiscal years 1975 and
' 1976 to reimburse housing loan funds for the aggregate fair market value of properties transferred and to
provide technical assistance.
State housing finance and development agencies. This provision encourages the formation and effective
operation of State housing finance agencies and State development agencies which have the authority to
finance, assist, or carry out activities designed to (1) provide housing and related facilities through land
acquisition, and the construction or rehabilitation for low -moderate- and middle-income persons, (2) promote
sound growth and development of neighborhoods through revitalization of slums and blighted areas, (3)
increase and improve employment opportunities for the unemployed and underemployed through the
development and redevelopment of industrial, manufacturing, and commercial facilities, or (4) implement the
development aspects of State land use and preservation policies, including advance acquisition of land. The
Secretary is authorized to provide technical assistance to State housing finance or State development agencies
to assist in the planning and carrying out of development activities.
In addition, the Secretary is authorized to guarantee, and to enter into commitments to guarantee,
taxable obligations issued by State housing finance and development agencies, and to make or contract to
make grants to or on behalf of such agencies to cover a maximum 33 1/3 percent of the interest payable on
financial obligations issued whether or not guaranteed. Appropriations are authorized in amounts necessary to
make grants as provided for under the section with payments not to exceed $50 million per annum prior to
July 1, 1975. The aggregate principal amount of guaranteed obligations may not exceed $500 million. The
guarantees are to be backed by the full faith and credit of the United States and are to be financed by
Treasury purchase of Secretarial obligations.
Housing allowances. The Secretary is authorized to undertake an experimental program to demonstrate
the feasibility of providing housing allowance payments to families for rental or homeownership expenses. No
payments may be made after July 1, 1985. Appropriations are authorized in an amount necessary to carry out
provisions of the program including payments made to recipients and administrative costs. The aggregate
amount of contracts to make housing allowance payments may not exceed amounts approved in appropriation
Acts and payments pursuant to such contracts may not exceed S40 million per annum. The Secretary is
prohibited from entering into contracts under the U.S. Housing Act of 1937 to carry out the provisions of
this program after January 1, 1975. The Secretary is required to make a report to Congress on his findings no
later than eighteen months after enactment of The Housing and Community Development Act of 1974.
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n
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Direct Financing study. The Secretary and the Secretary of the Treasury are required to study the
feasibility of financing programs authorized under section 236 of the National Housing Act and section 802 of
the Housing and Community Development Act of 1974 (State housing finance and development agencies)
through various methods of financing, including direct loans from the Federal Financing Bank, to determine
whether any such method would result in net savings to the Federal Government. A report to Congress is to
be made one year after date of enactment of the Act.
Solar Energy. The Secretary is authorized, after consultation with the National Science Foundation, to
undertake a demonstration program to determine the economic and technical feasibility of utilizing solar
energy for heating or cooling residential ',ousing (including demonstration of new housing design or structure
that makes use .of solar energy). A report to Congress is to be made no later than 6 months after the close of
the year in which a demonstration program is carried out.
Intorstato land sales. The sale or lease of lots in bona fide industrial or commercial developments is
exempted from the requirements of the Interstate Land Sales Full Disclosure Act in those cases where certain
stringent requirements are met.
A cooling -off period of three business days (instead of the 48-hour period now in the law) is provided to
consumers to consider land offering reports. A provision permitting a purchaser to waive his revocation right if
he signed a statement that he had inspected his lot and read and understood the property report has been
deleted.
The language of the measure makes clear that the Interstate Land Sales Full Disclosure Act applies to
transactions involving communications between parties in the United States and a foreign country.
National Institute of Building Sciences. The law authorizes the establishment of a non-profit, non-govern-
ment institute to develop, promulgate and evaluate criteria for housing and building regulations. Appropria-
tions are authorized in an amount of $5 million per year in FY 1975 and FY 1976 to provide the Institute
with initial capital adequate to exercise its functions and responsibilities.
Additional research authority. Title V of HUD Act of 1970 is amended to authorize the Secretary to
Is undertake special demonstrations to determine housing design, structure, housing -related facilities, services, and
amenities most effective in meeting the special housing needs of certain groups, including the elderly,
handicapped, displaced, single individuals, broken families, and large households. The Secretary also is
authorized to utilize the contract and loan authority of any federally assisted housing program to carry out
such demonstrations, and an additional $10 million from amounts approved in appropriation Acts is
authorized.
GNMA mortgage limitations. The basic mortgage limit is increased from the $22,000 limit in prior law to
$33,000, with statutory language enabling $38,000 to be set as the limit in high cost areas.
Federal Home Loan Mortgage Corporation.
Purchase of mortgages more than one year. FHLMC purchases of older mortgages are to be subject to a
20 percent limitation, provided an equivalent. dollar amount of such mortgages is invested by seller in
residential mortgages within 180 days.
FHLMC mortgage ceilings for Alaska, Guam, and Hawaii. The ceiling is increased to 50 percent above
the FHLBB-established S&L ceiling.
FHLMC securities. The measure clarifies the authority of national banks, FHL banks, S&L associations,
and credit unions to invest in FHLMC securities.
Servicing of mortgage purchase by FHLMC. Any HUD -approved mortgagee is authorized to service
FHLMC mortgages.
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•
Federal National Mortgage Association.
Purchase of mortgages more than one year old. FNMA purchases of older mortgages are made subject to
a 20 percent limitation provided an equivalent dollar amount of such mortgages is invested in residential
mortgages within 180 days.
FNMA mortgage ceilings for Alaska, Guam and Hawaii. The ceiling is increased to 50 percent above the
FHLBB-established ceiling for Alaska, Guam, and Hawaii.
Civil Service retirement for FNMA employees. Any person whose employment is made subject to the
civil service retirement law by section 806 of the Housing and Community Development Act of 1974 shall not
have considered, for purposes of that law, that portion of his basic pay in any one year which exceeds the
basic pay listed in section 5316 of Title V of the Civil Service Act.
Mortgage proceeds. The Secretary is required to initiate action to secure payment cf any deficiency
after foreclosure on a mortgage insured or assisted under Federal law where the Secretary believes that
mortgage proceeds have been fraudulently misappropriated by the mortgagor.
New Communities. Part B of Title VII of the HUD Act of 1970 is amended as follows:
(a) Name change
The name of HUD's Community Development Corporation is changed to "New Community Development
Corporation."
(b) Board of directors
The size of the Corporation's board of directors is increased from 5 to 7 members.
(c) Interest differential grants
The amount of interest differential grants which HUD is authorized to make to State or local public agencies
is increased to an amount equal to 30 percent of the interest paid on agency obligations.
(d) Supplementary grants
HUD is authorized to make new community supplemental grants to projects assisted by the National
Foundation on the Arts and Humanities.
(a) Waste disposal facilities, heating and air
conditioning systems
Waste disposal installations and community or neighborhood central heating or air-conditioning systems may
be financed within the proceeds of guaranteed loans.
Flood insurance. Federal agencies supervising lending institutions are directed to require such institutions
to notify a purchaser or lessee obtaining a loan secured by real property in a designated flood -prone area of
such flood hazard in writing. Notification must be within a reasonable period of time in advance of the
signing of purchase agreements, leases, or other documents.
Any community which has made adequate progress on construction of a flood protection system meeting
the 100 -year protection standard, as determined by HUD, is made eligible for flood insurance under the
National Flood Insurance Program at subsidized premium rates if—
(a) 100 percent of project cost of flood protection system (from Federal and local sources) has been
authorized,
(b) at least 60 percent of project cost of system has been appropriated,
(c) at least 50 percent of project cost of system has been expended, and
(d) the system is at least 50 percent completed.
National housing goal. Title XVI of the HUD Act of 1968 is amended to express the sense of Congress
that achievement of housing goals requires a greater effort to preserve. existing housing and neighborhoods,
and that such an effort requires greater concentration on housing and neighborhoods where deterioration is
evident though not acute. The President's annual housing report is required to include an assessment of
preservation efforts and future plans.
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Limitation on withholding or conditioning HUD assistance. The law prohibits administrative withholding
® or conditioning of Federal housing or community development assistance by reason of the fact that State or
local governments use proceeds of tax-exempt borrowings to provide financing for use in connection with such
Federal assistance.
Counseling and technical assistance program (section 106 of HUD Act of 1968). Such sums as may be
necessary are authorized to be appropriated to carry out the provisions of the counseling and technical
assistance program. Local public housing agencies are designated as sponsors eligible for section 106(b) loans
for pre -construction expenses.
Condominium and cooperative study. The Secretary is authorized and directed to conduct a full and
complete investigation and study with respect to the problems, difficulties, and abuses or potential abuses
which may be involved in condominium and cooperative housing, and report to Congress not later than one
year after date of enactment of the Act.
Additional HUD Assistant Secretaries. The number of level IV Assistant Secretaries authorized for HUD is
increased from 6 to 8.
Fair housing with respect to sox. The Civil Rights Act of 1968 is amended to prohibit discrimination on
basis of sex in financing, sale, or rental of housing, or provision of brokerage services. Title V of the National
Housing Act is amended to prohibit discrimination on the basis of sex in the making of Federaliyrelated
mortgage loans, insurance guaranty, or related assistance; lenders are required to consider combined incomes
of husband and wife in extending mortgage credit.
Neighborhood Development—Trenton, New Jersey. Local expenditures made for the Board and Front
Street Garage in Trenton, N.J. are to be counted as a local grant-in-aid to the first two action years of the
Trenton Neighborhood Development Program, in accordance with provisions of title I of Housing Act of
1949.
® Mass Transportation. The Urban Mass Transportation Act of 1964 and the Federal -Aid to Highways Act
of 1973 is amended to prohibit Federai assistance for the purchase of buses unless the applicant or public
body receiving assistance or any publicly owned operator receiving assistance agrees that such public body or
any operator for it will not engage in charter bus operations outside the urban area it regularly serves.
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