Page:United States Statutes at Large Volume 50 Part 1.djvu/917

 892 Conditions im. posed. Deferment. Extent of Federal contributions. Regulations. Provisos. Not to exceed an- nual yield, etc. Payment of interest or principal. Contribution con- tracts for periods ex- ceeding 20 years. Reex aminati ons. Funds available for payment of annual contributions. Contracts author- ized. 75TH CONGRESS, 1sT SESSION-CH. 896-SEPTEMBER 1, 1937 any annual c ontribution i n connection with the devel opment of any low-rent-housing or slum-clearance project involving the construction of new dwellings, unless the project includes the elimination by demolition, condemnation, and effective closing, or the compulsory repair or improvement of unsafe or insanitary dwellings situated in the locality or metropolitan area, substantially equal in number to the number of newly constructed dwellings provided by the project ; except that such elimination may, in the discretion of the Authority, be deferred in any locality or metropolitan area where the, shortage of decent, saf e, or sanitar y housing ava ilable to fami lies of low income is so acute as t o forc e dang erous overc rowdin g of such families. (b) Annual contributions shall be strictly limited to the amounts and periods necessary, in the determination of the Authority, to assure the low-rent character of the housing projects involved. Toward this end th e Aut hority may p rescri be re gulati ons fi xing the maximum contributions available under different circumstances, giving consideration to cost, location, size, rent-paying ability of prospective tenants, or other factors bearing upon the amounts and periods of ass istance neede d to achieve and maintain l ow rentals. Such regulatio ns may provid e for rates o f contribution based upon development, acquisition or administration cost, number of dwelling units, number of persons housed, or other appropriate factors
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vided, That the fixed contribution payable annually under any contract shall in no case exceed a sum equal to the annual yield, at the going Federal rate of interest at the time such contract is made plus 1 per centum, upon the development or acquisition cost of the low-rent housing or slum-clearance project involved : And provided further , That all such annual contributions shall be used first to app ly toward any payment of i nterest or pri ncipal on any loan due to the Authority from the public housing agency. (c) I n case any co ntract for ann ual contribut ions is made for a period exceeding twenty years, the Authority shall reserve the right to reexamine the status of the low-rent-housing project involved at the end of ten years and every five years thereafter • and, at the time of any such reexamination, the Authority may make such modifica- tion (subject to all the provisions of this section) in the fixed and uniform amounts of subsequent annual contributions payable under such contract as is warranted by changed conditions and as is con- sistent with maintaining the low-rent character of the housing project involved. In no case shall any contract for annual contributions be made for a period exceeding sixty years. (d) All payments of annual contributions pursuant to this section shall be made out of any funds available to the Authority when such payments are due, except that its capital and its funds obtained through the issuance of obligations pursuant to section 20 (including repayments or other realizations of the principal of loans made out of such capital and funds) shall not be available for the payment of such annual contributions. (e) The Authority is authorized, oil and after the date of the enactment of this Act, to enter into contracts which provide for annual contributions aggregating not more than $5,000,000 per annum, on or after July 1, 1938, to enter into additional such con- tracts which provide for annual contributions aggregating not more than $7,500,000 per annum, and on or after July 1, 1939, to enter into additional such contracts which provide for annual contributions aggregating not more than $7,500,000 per annum. Without further authorization from Congress, no new contracts for annual contribu- tions b eyond those h erein authoriz ed shall be e ntered into by the