Page:United States Statutes at Large Volume 50 Part 1.djvu/921

 896 75TH CONGRESS, 1sT SESSION-CH. 89 G-S EPT EMB ER 1, 193 7 excess of the going Federal rate (at the time of such leasing or acquisition) plus 2 per centum per annum or to declare the unpaid principal on said loan due forthwith. Contracts for an- (3) Then a contract for annual contributions is made pursuant to nual contributions, rights reserved by section 10, the Authority shall retain the right, in the event of a Authority. substantial breach of the condition (which shall be embodied in such contract) providing for the maintenance of the low-rent char- acter of the housing project involved, to reduce or terminate the annual contributions payable under such contract. In the event of the acquisition of such project by a third party in any manner including a bona-fide foreclosure under a mortgage or other lien held by (a third party, such annual contributions shall terminate . Insertion of other (4) The Authority may also insert in any contract for loans, covenants in con- tracts. annual contributions, capital grants, sale, lease, mortgage, or any other agreement or instrument made pursuant to this Act, such other covenants, conditions, or provisions at it may deem necessary in order to insure the low-rent character of the ho using project Playground space . involved : Provided, That any such contract for a substantial loan may contain a condition requiring the maintenance of an open space or playground in connection with the housing project involved if deemed n ecessary by the Auth ority for the safety or health of Cost limitation, children . family dwelling units, (5) No contract for any loan, annual contribution, or capital grant etc . made pursuant to this Act shall be entered into by the Authority with respect to any project hereafter initiated costing more than $4,000 per family-dwelling-unit or more than $1,000 per room (excluding land, demolition, and non-dwelling facilities) ; except that in any city the population of which exceeds 500,000 any such contract may be entered into with res pect to a project hereafter initiated costing not to exceed $5,000 per family-dwelling-unit or not to exceed $1,250 per room (excluding land, demolition, and lion- dwelling facilities), if in the opinion of the Authority such higher family-dwelling-unit cost or cost per room is justified by reason of higher costs of labor and materials a nd other construction costs. Activities restricted. Wit h re spec t to hous ing proje cts on w hich cons truc tion is h erea fter initiated, the Authority shall make loans, grants, and annual contri- butions only for such low-rent-housing projects as it finds are to be undertaken in such a manner (a) that such projects will not be of elaborate or expensive design or materials, and economy will be promoted both in construction and administration, and (b) that the average construction cost of the dwelling units (excluding land, demolition, and non-dwelling facilities) in any such project is not greater than the average construction cost of dwelling units currently pro duce d by priv ate ente rpris e in the loca lity or metro poli tan area concerned, under the legal building requirements applicable to the proposed si te, and under labor standards not lower than those pre scrib ed in this Act. Labor standards. SEC. 16. In order to protect labor standards- Contractors pu b- lic buildings . (1) The provisions of the Act of August 30, 1935, entitled "An Act 49St at. 1011. to amend the Act approved March 3, 1931, relating to the rate of 40 U.S.C., Supp. 11, ° 276a . w a g e s f o r l a b o r e r s a n d m e c h a n i c s e m p l o y e d b y c o n t r a c t o r s a n d s u b - 4 9 St 40 Ua t.7 9 C., supp. contractors on public buildings" (49 Stat . 1011), and of the Act of n, °° 270a-d. August 24, 1935, entitled "An Act requiring contracts for the con- struction, alteration, and repair of any public building or public work of the United States to be accompanied by a performance bond protecting the United States and by an additional bond for the pro- tection of persons furnishing material and labor for the construction, alteration, or repair of said public buildings or public work" (U . S . C ., 1934 edition, Supp . 11, title 40, sees . 270a to 270d, inclusive),