Page:United States Statutes at Large Volume 50 Part 1.djvu/918

 75'ra CONGRESS, lsr SESSION-CH. 896-SEPTEM BER 1, 1937 893 Authority. The faith of the United States is solemnly pledged to Federal obligations. the payment of all annual contributions contracted for pursuant to this section, and there is hereby authorized to be appropriated in each fiscal year, out of any money in the Treasury not otherwise appropri- ated, the amounts necessary to provide for such payments. CAPITAL GRANTS IN ASSISTANCE OF LOW RE NT ALS SEC. 11 . (a) As an alternative method of assistance to that pro- sls Capital g low is inals- vided in section 10, when any public housing agency so requests and demonstrates to the satisfaction of the Authority that such alterna- tive method is better suited to the purpose of achieving and main- taining low rentals and to the other purposes of this Act, capital grants may be made to such agency for such purposes. The capital grants thus made for any low-rent-housing or slum-clearance project shall be paid in connection with its development or acquisition, and shall be strictly limited to the amounts necessary, in the determina- tio n of the Au thor ity, to ass ure its low- rent ch arac ter : Provided , «oviso

however, That no capital grant shall be made for the development of Condition. any low-rent-housing or slum-clearance project involving the con- stru ction of ne w dwel lings, unle ss the proj ect in clude s the elimin ation 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 dwelling units 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, safe, or sanitary housing available to families of low income is so acute as to force dangerous overcrowding of such families. (b) Pursuant to subsection (a) of this section, the Authority may Limitation on make a capital grant for any low-rent-housing or slum-clearance amount. project, which shall in no case exceed 25 per centum of its develop- ment or acquisition cost. (c) All payments of capital grants by the Authority pursuant to Funds available. subsection (b) of this section shall be made out of any funds avail- able to the Authority, except that its capital and its funds obtained through the issuance of obligations pursuant to section 20 (including P0st, p .898. 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 capital grants. (d) The Authority is authorized, on or after the date of the enact- t biimita ioo mak e went of this Act to make capital grants (pursuant to subsection (b) gran ts . of this section) aggregating not more than $10,000,000, on or after July l, 1938, to make additional capital grants aggregating not more than $10,000,000, and on or after July 1, 1939, to make additional capital grants aggregating not more than $10,000,000. With out further authorization from Congress, no capital grants beyond those herein authorized shall be made by the Authority. (e) To supplement any capital grant made by the Authority in to su Allocation of pplement grams connec tion with the development of any low-r ent-housing o r slum- clearance project, the President may allocate to the Authority, from any funds available for the relief of unemployment, an additional capital grant to be expended for payment of labor used in such development : Provided, That such additional capital grant shall not Limiiarion. exceed 15 per centum of the development cost of the low-rent-housing or slum-clearance project involved. State, etc ., contri. (f) No capital grant pursuant to this section shall be made for any bution . low-rent-housing or slum-clearance project unless the public housing agency receiving such capital grant shall also receive, from the State,