eligible to occupy the FHA housing provided under that program for low- and moderate-income families. Subsection (c) amends section 231 of the National Housing Act (the FHA mortgage insurance program for the elderly) to authorize insurance of mortgages to provide rental housing for the handicapped. Subsection (d) amends section 2(2) of the U.S. Housing Act of 1937 (as amended by sec. 401 (a) of this act) to permit the handicapped individuals, like elderly individuals, to be eligible for low-rent public housing if they have low incomes. Subsection (e) amends section 207 of the Housing Act of 1961 to include housing for handicapped persons within the program of grants for demonstrations of new or improved means of providing housing for low-income persons and families. Code enforcement TITLE III-URBAN RENEWAL URBAN RENEWAL AMENDMENTS Section 301 makes various changes in title I of the Housing Act of 1949 to encourage more intensive efforts in code enforcement under the urban renewal program. Subsection (a) amends section 101 (c) of the 1949 act to provide that (beginning 3 years after enactment of the Housing Act of 1964) no workable program, as defined in that section, will be certified or recertified unless the locality involved has had in effect for at least 6 months an adequate minimum standards housing code and is carrying out an effective program of enforcement to achieve compliance with such code. Subsection (b) amends section 110 (c) of the 1949 act to authorize a new type of urban renewal project which may consist entirely or substantially of a program of code enforcement in an urban renewal area. Subsection (c) further amends section 110(c) of the 1949 act to permit the cost of code enforcement activities carried out in clearance and redevelopment projects and in rehabilitation or conservation projects to be included as a part of eligible project costs. However, expenditures for code enforcement activities authorized to be assisted under the provisions of subsection (b) or (c) of this section can be included as an eligible project cost only if the community agrees to increase its total expenditures for code enforcement activities by an amount equal to its share of the project cost attributable to the code enforcement activities in the project area. Subsection (d) amends title I of the 1949 act to permit existing capital grant contracts to be amended to permit the cost of code enforcement activities incurred in urban renewal areas after the date of enactment of the act to be included as part of gross project cost. Self-help programs for community improvement Section 302 amends section 101 (d) of the 1949 act to authorize the Housing and Home Finance Administrator to include in the urban renewal services which he is authorized to furnish to communities any assistance requested in the development of self-help programs, such as rehabilitation projects not requiring Federal financial assistance and self-liquidating redevelopment projects. Loan contract for two or more projects Section 303 amends sections 102(a) and 110(g) of the 1949 act to permit the Administrator to enter into a single contract with a local public agency to provide the temporary financing needed for two or more urban renewal projects. Capital grant authorization Section 304 amends section 103(b) of the 1949 act to increase by $725 million the aggregate amount of grants which the Administrator may make under the urban renewal program. Relocation of displacees from urban renewal areas Section 305(a) amends section 105(c) of the 1949 act to require that (with respect to any urban renewal project receiving Federal recognition after the enactment of the Housing Act of 1964) there be a feasible method for relocating individuals displaced from an urban renewal area, as well as for relocating families. Subsection (b) further amends section 105(c) of the 1949 act to require the Administrator to issue rules and regulations providing for the establishment for each urban renewal project of a relocation assistance program designed to determine the needs of displacees, including businesses, for relocation assistance, provide information and assistance and minimize the hardships of displacement, and coordinate relocation activities with other project activities and related governmental activities. Subsection (c) amends section 8(b) of the Small Business Act to direct the Small Business Administration to provide relocation assistance and information for small business concerns to be displaced from urban renewal areas, at the earliest practicable time. Disposal of land for low- and moderate-income housing Section 306 amends section 107 (a) and (b) of the 1949 act to permit the sale of real property in an urban renewal area at a special reduced price to purchasers who will use such real property to provide housing for low- or moderate-income individuals. The sale of real property at a special reduced price is already available for housing for low- or moderate-income families. The revised section 107(b) provides a new method of determining the fair value for the disposition of property in an urban renewal area to local housing agencies undertaking low-rent housing projects. Under the amendment, the price for such property will be the same as in the case of property made available under section 107(a) for rental or cooperative housing for moderate-income families (thus permitting a uniform sales price whether the property is sold for public housing or moderate-income housing purposes). Under prior law, land for public housing was provided at the fair value of the land for private rental housing having physical characteristics similar to the proposed low-rent housing. Rehabilitation of property in urban renewal areas Section 307 amends section 110(c) of the 1949 act to prohibit Federal assistance for any urban renewal project providing for demolition and removal of buildings and improvements unless the Administrator determines that the objectives of the urban renewal plan cannot be achieved through rehabilitation of the project area. Projects involving the acquisition and development of air rights sites Section 308 amends section 110 (c), (d), and (e) of the 1949 act to authorize urban renewal projects for air rights developments to be used in providing sites for low- or moderate-income housing and related facilities and uses. An air rights project can be undertaken in an area which is not itself a slum, blighted, deteriorated, or deteriorating area if it consists principally of land in highways, railway or subway tracks, bridge or tunnel entrances, or other similar facilities which have a blighting influence on surrounding areas. Such a project, or any other urban renewal project, can, under this section, include the construction of foundations and platforms for provision of air rights sites for housing for families of low or moderate income, as well as acquisition of the necessary development rights. In no case, however, could noncash local grant-in-aid credit be given for the donation of air development rights over streets, alleys, or other public rights-of-way. The aggregate amount of capital grants for air rights projects cannot exceed 5 percent of the amount of all grants authorized to be contracted for after the date of enactment of the Housing Act of 1964. Amendment of definition of “going Federal rate" Section 309 amends section 110(g) of the 1949 act to require the interest rate set for an urban renewal contract for loan or advance to apply not only to the amount originally authorized, but also to any additional amounts authorized by subsequent amendments to the contract. Relocation payments to displaced persons and businesses Section 310 adds to title I of the 1949 act a new section 114, incorporating the provisions of the previous section 106(f) of this act, relating to relocation payments to displaced business concerns, nonprofit organizations, individuals, and families under the urban renewal program, and providing additional payments in certain cases, as follows: Families and elderly individuals (62 years of age or over).—A relocation adjustment payment to assist in the acquisition of decent, safe, and sanitary dwellings may be made to families and elderly individuals (62 or over) who are displaced after January 27, 1964 and are unable to secure public housing. The amount of the payment authorized is based on the difference between the average monthly rental required for decent, safe, and sanitary housing of modest standards and 20 percent of the monthly income of the displaced family or elderly individual. The total payment authorized is the amount of money required to make up this difference for a period of 12 months, but not to exceed $500. The amount to which each displaced person or family is entitled can be paid only on his behalf and the entire amount of the payment must be made within 5 months after displacement. Business concerns.-Displaced business concerns with average annual net earnings of less than $10,000 may receive an additional relocation payment of $1,500. This additional payment is available only for displacement occurring on or after January 27, 1964, and for businesses which are not part of an enterprise having an establishment outside the urban renewal area. In addition, a business concern even though not itself physically displaced from an urban renewal area will be entitled to receive reimbursement for actual moving expenses incurred by it in removing its outdoor advertising displays from an urban renewal area. Urban renewal contracts executed before enactment of the Housing Act of 1964 may be amended to incorporate the additional payments provided by these new provisions. Regulations governing relocation payments are required to include provisions to assure that relocation payments shall be made as promptly as possible without regard to any subsequent proceedings, determinations, or events relating to the property which do not bear upon whether the displacement in fact occurred. Acquisition of property affected by coal mine subsidence or underground mine fires Section 311 (a) and (b) amend section 110(e) of the 1949 act by adding a new paragraph to authorize a special acquisition price where property acquired for urban renewal purposes has been damaged because of the subsidence or collapse of underlying coal mines, or underground mine fires. This price will be paid only where the owner was a family, individual, business, or nonprofit organization which had acquired the property before the damage first occurred. It will permit an increase in the price otherwise allowable to the owner equal to any diminution in the value of the property which is reasonably attributable to the damage and which represents a loss for which the owner has not received, and cannot receive, compensation from other sources. Existing contracts may be amended to include these increased acquisition costs where a local public agency is required to pay them under any State or local law in effect on the date of enactment of the Housing Act of 1964. NEW REHABILITATION LOAN PROGRAM Rehabilitation loans Section 312 adds a new rehabilitation program to authorize the Housing Administrator to make low-interest loans to owners or tenants of homes or business property in urban renewal areas to finance the rehabilitation required to make the property conform to code requirements or to carry out the objectives of the urban renewal plan for the area in order to reduce the need for demolition and removal of structures which could be rehabilitated. Subsection (a) authorizes the Administrator to make such loans, provided the borrower is unable to secure the necessary funds from other sources on reasonable terms and conditions and the loan is an acceptable risk. The Administrator shall utilize local public and private agencies where feasible in making the loans. Subsection (b) contains definitions of terms used in the section. Subsection (c) provides that the interest rate on any such loan may not exceed 3 percent and the maturity may not exceed 20 years or three-fourths of the remaining economic life of the structure after its rehabilitation, whichever is less. The amount of such loan cannot exceed the cost of rehabilitation (except in the case of refinancing), nor $10,000 in the case of a home or dwelling unit, nor $50,000 in the case of business property. A residential loan is also limited to an amount which when added to any outstanding indebtedness relating to the property creates a total indebtedness which does not exceed the amount of a first mortgage which could be insured by the FHA under its section 220 urban renewal housing program. A nonresidential loan is limited in a similar manner. A residential loan may exceed the cost of rehabilitation in an amount sufficient to refinance existing indebtedness on the property where this is necessary to keep the monthly payments needed to amortize the debts secured by the home of a low- or moderate-income borrower within 20 percent of his monthly income. However, the amount of the loan will remain subject to the $10,000 limit and limitations otherwise applicable. The Administrator will prescribe the security to be required and such other terms and conditions as he deems appropriate. Subsection (d) authorizes the appropriation of up to $50 million for a revolving fund for the new loan program. Subsection (e) confers upon the Administrator, for purposes of the program, the usual administrative powers. Subsection (f) authorizes the Administrator to use any Federal or local public or private agency or organization as his agent in carrying out the program. Subsection (g) provides for the issuance by the Administrator of such rules and regulations, and the imposition by him of such additional requirements and conditions, as may be desirable in carrying out the objectives of the program, including limitations on the amount of the loan and restrictions on the use of the property. URBAN RENEWAL DEMONSTRATIONS Urban renewal demonstration program Section 313 amends section 314 of the Housing Act of 1954 to increase by $5 million the maximum amount of urban renewal grant funds which may be used in carrying out the section 314 urban renewal demonstration grant program. It also provides that the full cost of writing and publishing reports (including summaries and other informational material) on demonstration projects and similar undertakings will be paid from Federal funds. Under previous law at least one-third of all costs of activities under the demonstration grant program had to be paid for by the local public body. URBAN PLANNING ASSISTANCE Urban and regional planning grants Section 314 amends section 701 (a) and (b) of the 1954 act to make the following changes in the program of urban planning: (1) Permits a grant for planning assistance to any group of adjacent communities of less than 50,000 population and having common or related urban planning problems, whether or not "resulting from rapid urbanization" as previously specified in the statute. (2) Authorizes grants (where the State planning agency or Governor assents) to regional or metropolitan planning bodies for planning assistance to municipalities under 50,000 population, counties, and certain other types of areas, for which planning assistance could previously be provided only by a State planning agency. (3) Authorizes three-fourths grants to official governmental planning agencies for any area where there has occurred a substantial reduction in employment opportunities as a result of the complete or |