Page:United States Statutes at Large Volume 50 Part 1.djvu/919

 894 Disposal of Federal projects. Authority to sell its Fede ral proj ects, et c. Sale to public hous- ing agency only ; con- sideration. Eligibility for loans. Ante, p. 891 . Le ases to public housing agency. 47 Stat. 412. 40U.S.C.°mob. Rentals. General powers o f the Aut hor ity. 75 TH CONGRESS, 1ST SESSION-CH. 8 96-SE PTEMB ER 1, 1937 pol itical s ubdivisi on thereo f, or ot herwise, a contr ibution f or such pro ject (in the for m of cash, land, or the v alue, ca pitalized at the going Federal rate of interest, of community facilities or services for which a charge is usuall y Inade, or tax remissio ns or tax exemp- tions) in an amount not less than 20 per centum of its development or acquisit ion cost. DISPOSAL OF FEDERAL PROJECTS SEC. 12 . (a) It is hereby declared to be the purpose of Congress to provide for the orderly disposal of any low-rent-housing projects hereafter transferred to or acquired by the Authority through the sale or leasing of such projects as hereinafter provided ; and, in order to continue the relief of Nation-wide unemployment and in order to avoid waste pending such sale or lease, to provide for the completion and temporary administration of such projects by the Authority. (b) As soon as practicable the Authority shall sell its Federal projects or divest itself of their management through leases. (c) The Authority may sell a Federal project only to a public housing agency. Any such sale shall be for a consideration, in what- ever form may be satisfactory to the Authority, equal at least to the amount which the Authority determines to be the fair value of the project for a housing purposes of a low-rent character (making such djustment as the Authority deems advisable for any annual con- tributions which may hereafter be given here un r deinaidofthe project), less such allowance far depreciation as the Authority shall fix . Such project shall then become eligible for loans pursuant to sect ion 9, a nd either annual contribu tions pu rsuant t o section 10 or a capital grant pursuant to section 11. Any obligation of the pur- chaser accepted by the Authority as part of the consideration for the sale of such project shall be deemed a loan pursuant to section 9. (d) The A utho rity may l ease any Feder al l ow-re nt-ho usin g pro j- ect, in whole or in part, to a public housing agency. The lessee of any project, pursuant to this paragraph, shall assume and pay all man agem ent, opera tion, and main tena nce c osts, tog ether with pay - ments, if any, in lieu of taxes, and shall pay to the Authority such ann ual sums as th e Au thori ty sh all deter mine are consi stent wit h maintaining the low-rent character of such project. The provisions of section 321 of the Act of June 30, 1932 (U . S . C ., 1934 edition, title 40, sec . 303 b), shall not apply to any lease pursuant to this Act. (e) In the admi nistrati on of any Federal low-ren t-housin g projec t pending sale or lease, the Authority shall fix the rentals at the amounts necessary to pay all management, operation, and mainte- nance costs, together with payments, if any, in lieu of taxes, plus such additional amounts as the Authority shall determine are con- sistent with maintaining the low-rent character of such project. GENERAL POWERS OF THE AUTHORITY SEc. 13. (a) The Authority may foreclose on any property or com- mence any action to protect or enforce any right conferred upon it by any law, contract, or other agreement. The Authority may bid for and purchase at any foreclosure by any party or at any other sale, or other wise acq uire, an d may ad minister, any low -rent-ho using pro ject which it previ ously own ed or in c onne ction with whi ch it has m ade a loa n pursua nt to se ction 9, annual contribut ions pur suant to section 10, or cap ital grants pursuant to section 11.