All 68 Stat. 630. those undertakings which in his judgment can reasonably be expected notwithstanding the provisions of section 3648 of the Revised Statutes, 31 USC 529. as amended. The aggregate amount of grants made under this section Limitation. shall not exceed $5,000,000 and shall be payable from the capital grant funds provided under and authorized by section 103 (b) of the Housing 42 USC 1453. Act of 1949, as amended. SEC. 315. Section 19 of the District of Columbia Redevelopment D. C. urban reAct of 1945, as amended, is hereby amended by striking "$2,000" in newal activsubsection (a) and subsection (b) and inserting in each instance ities. "$2,500 unless insured as provided in title I of the National Housing 60 Stat. 801. Act, as amended". C. Code SEC. 316. Section 20 of the District of Columbia Redevelopment D. C. Code Act of 1945, as amended, is hereby amended (1) by striking "1949" wherever it appears in said section and inserting "1949, as amended": Provided, That this clause (1) shall not limit or restrict any authority under said section 20; and (2) by adding the following new subsections at the end of said section: "(i) In addition to its authority under any other provision of this Act, the Agency is hereby authorized to plan and undertake urban renewal projects (as such projects are defined in title I of the Housing Act of 1949, as amended), and in connection therewith the Agency, the District Commissioners, the National Capital Planning Commission, and the other appropriate agencies operating within the District of Columbia shall have all of the rights and powers which they have with respect to a project or projects financed in accordance with the preceding subsections of this section: Provided, That for the purpose of this subsection the word 'redevelopment' wherever found in this Act (except in section 3 (n)) shall mean 'urban renewal', and the references in section 6 to the acquisition, disposition, or assembly of real property for a project shall mean the undertaking of an urban renewal project. 5-718. "(j) The District Commissioners are hereby authorized to prepare Program preparaa workable program as prescribed by section 101 (c) of the Housing tion. Act of 1949, as amended, and are also authorized to request the neces- Ante, p. 623. sary funds for the preparation of said workable program. The Commissioners may request the participation of the Agency in the preparation of said workable program and may include in their annual estimates of appropriations such funds as may be required by the Commissioners or the Agency, or both, for this purpose. The District Commissioners are hereby authorized, with or without reimbursement, to cooperate with the Agency in carrying out urban renewal projects and to utilize for that purpose the facilities and personnel of the District of Columbia under agreement with the Agency." TITLE IV-LOW-RENT PUBLIC HOUSING SEC. 401. The United States Housing Act of 1937, as amended, is 50 Stat. 888. hereby amended42 USC 1430. (1) by adding at the end of section 10 the following new 42 USC 1410. subsection: "(i) Notwithstanding the provisions of any other law, the Public Additional Housing Administration may, with respect to low-rent housing units, projects initiated after March 1, 1949, enter into new contracts, agree A11 68 Stat. 631. 42 USC 1430. Ante, p. 622. ments, or other arrangements during the fiscal year 1955 for loans and annual contributions pursuant to the United States Housing Act of 1937, as amended, with respect to not exceeding thirty-five thousand Certification. additional units: Provided, That no such new contract, agreement, or other arrangement shall be made except with respect to low-rent housing projects to be undertaken in a community in which there is being carried out a slum clearance and urban redevelopment project, or a slum clearance and urban renewal project, assisted under title I of the Housing Act of 1949, as amended, and the local governing body of the community undertaking such slum clearance and urban redevelopment project, or slum clearance and urban renewal project, certifies that such low-rent housing project is necessary to assist in meeting the relocation requirements of section 105 (c) of title I of the Housing Act of 1949, as amended: And provided further, That the total number of dwelling units in low-rent housing projects covered by such new contracts, agreements, or other arrangements shall not exceed the total number of such dwelling units which the Administrator determines to be needed for the relocation of families to be displaced as a result of Federal, State, or local governmental action in such community."; Ante P. 625. Preferences for admission. Low income families. 42 USC 1415, 42 USC 1410. Exemption of property from taxes. (2) by striking from subsection 10 (g) the words following the colon up to and including the words "such families" and inserting the following: "First, to families which are to be displaced by any low-rent housing project or by any public slum-clearance, redevelopment or urban renewal project, or through action of a public body or court, either through the enforcement of housing standards or through the demolition, closing, or improvement of dwelling units, or which were so displaced within three years prior to making application to such public housing agency for admission to any low-rent housing: Provided, That as among such projects or actions the public housing agency may from time to time extend a prior preference or preferences: And provided further, That, as among families within any such preference group"; (3) by striking the words "or was to be displaced by another low-rent housing project or by a public slum-clearance or redevelopment project" in clause (ii) of subsection 15 (8) (b) and inserting the following: "or was to be displaced by any low-rent housing project or by any public slum-clearance, redevelopment or urban renewal project, or through action of a public body or court, either through the enforcement of housing standards or through the demolition, closing, or improvement of a dwelling unit or units"; and (4) by striking the words "not later than five years after March 1, 1949" in subsection 15 (8) (b) and inserting "not later than March 1, 1959". SEC. 402. Subsection 10 (h) of said Act, as amended, is hereby amended to read as follows: "(h) Every contract made pursuant to this Act for annual contributions for any low-rent housing project initiated after March 1, 1949, shall provide that no annual contributions by the Authority shall be made available for such project unless such project is exempt from all real and personal property taxes levied or imposed by the State, city, county, or other political subdivisions, but such contract shall require the public housing agency to make payments in lieu of taxes lieu of taxes. equal to 10 per centum of the annual shelter rents charged in such project or such lesser amount as (i) is prescribed by State law, or (ii) is agreed to by the local governing body in its agreement for local cooperation with the public housing agency required under subsection 15 (7) (b) (i) of this Act, or (iii) is due to failure of a local public Payments in All 68 Stat. 632. body or bodies other than the public housing agency to perform any tribution below such 20 per centum: Provided further, That, with State contri- (but not in excess of the taxes levied): And provided further, That, Notification of prior to execution of the contract for annual contributions the public estimates. housing agency shall, in the case of a tax-exempt project, notify the governing body of the locality of its estimate of the annual amount of such payments in lieu of taxes and of the amount of taxes which would be levied if the property were privately owned, or, in the case where the project is taxed, its estimate of the annual amount of the local cash contribution, and shall thereafter include the actual amounts Annual report. in its annual reports. Contracts for annual contributions entered into Prior contract prior to the effective date of the Housing Act of 1954 may be amended amendment. in accordance with the first sentence of this subsection." SEC. 403. Section 10 of said Act, as amended, is hereby amended by 42 USC 1410. adding the following new subsection: "(j) Every contract made pursuant to this Act for annual contribu- Self-liquidation. tions for any low-rent housing project for which no such contract has been entered into prior to the enactment of the Housing Act of 1954 shall provide that— "(1) after payment in full of all obligations of the public housing agency in connection with the project for which any annual contributions are pledged, and until the total amount of annual contributions paid by the Authority in respect to such project has been repaid pursuant to the provisions of this subsection, (a) all receipts in connection with the project in excess of expenditures necessary for management, operation, maintenance, or financing, and for reasonable reserves therefor, shall be paid annually to the Authority and to local public bodies which have contributed to the project in the form of tax exemption or otherwise, in proportion to the aggregate contribution which the Authority and such local public bodies have made to the project, and (b) no debt in respect to the project, except for necessary expenditures for the project, shall be incurred by the public housing agency; "(2) if, at any time, the project or any part thereof is sold, such sale shall be to the highest responsible bidder after advertising, or at fair market value, and the proceeds of such sale. together with any reserves, after application to any outstanding debt of the public housing agency in respect to such project, shall be paid to the Authority and local public bodies as provided in All 68 Stat. 633. 42 USC 1416(6). 42 USC 1410. clause 1 (a) of this subsection: Provided, That the amounts to be paid to the Authority and the local public bodies shall not exceed their respective total contribution to the project.". SEC. 404. Paragraph (6) of section 16 of said Act, as amended, is hereby repealed. SEC. 405. Section 10 of the United States Housing Act of 1937, as amended, is hereby amended by adding the following subsection: "(k) All expenditures of appropriations for the payment of annual GAO audit and contributions shall be subject to audit and final settlement by the Comptroller General of the United States under the provisions of the Budget and Accounting Act of 1921, as amended.” settlement. 42 Stat. 20. 31 USC 1. Sale to private ownership. Federal Savings and Insurance Corp. 12 USC 1725. Service of process. 12 USC 1728. Claims. Statute of limitations. 12 USC 1730. Termination of insurance. SEC. 406. Section 10 of said Act, as amended, is hereby amended by adding the following new subsection: "(1) In any community where it has been determined by resolution or ordinance, or by referendum, that a project shall be liquidated by sale thereof to private ownership, such community may negotiate with the Federal Government with respect to the sale of the project, and the Authority shall agree that sale of the project may be made after public advertisement to the highest bidder upon (1) payment and retirement of all outstanding obligations (together with any interest payable thereon and any premiums prescribed for the redemption of any bonds, notes, or other obligations prior to maturity) in connection with the project, and (2) payment of any proceeds received from the sale of the project in excess of the amounts required to comply with the requirements of the preceding clause numbered (1) to the Authority and to local public bodies in proportion to the aggregate contribution which the Authority and such local public bodies have made to the project." TITLE V-HOME LOAN BANK BOARD SEC. 501. The National Housing Act, as amended, is hereby amended (1) by amending section 402 (c) (4) to read as follows: "(4) To sue and be sued, complain and defend, in any court of competent jurisdiction in the United States or its Territories or possessions or the Commonwealth of Puerto Rico, and may be served by serving a copy of process on any of its agents or any agent of the Home Loan Bank Board and mailing a copy of such process by registered mail to the Corporation at Washington, District of Columbia."; (2) by adding the following new subsection to section 405: (c) No action against the Corporation to enforce a claim for payment of insurance upon an insured account of an insured institution in default shall be brought after the expiration of three years from the date of default unless, within such three-year period, the conservator, receiver, or other legal custodian of the insured institution shall have recognized such insured account as a valid claim against the insured institution and the claim for payment of insurance shall have been presented to the Corporation and its validity denied, in which event the action may be brought within two years from the date of such denial."; and (3) by striking the first four sentences of section 407 and inserting the following: "Any insured institution other than a Federal savings and loan association may terminate its status as an insured institution by written notice to the Corporation. Whenever in the opinion of the Home Loan Bank Board any insured institution has violated its duty as such or has continued unsafe or unsound practices in conducting the business of such All 68 Stat. 634, institution, or has knowingly or negligently permitted any of its officers or agents to violate any provision of any law or regulation to which the insured institution is subject, said Board shall first give to the authority having supervision of the institution, if any, a statement with respect to such practices or violations for the purpose of securing the correction thereof and shall give a copy thereof to the institution. In the case of an institution of a State where there is no supervisory authority the statement shall be sent directly to the institution. Unless such correction shall be made within one hundred and twenty days or such shorter period of time as the supervisory authority, if any, shall require, the Home Loan Bank Board, if it shall determine to proceed further, shall give to the institution not less than thirty days' written notice of intention to terminate the status of the institution as an insured institution, and shall fix a time and place for a hearing before the Home Loan Bank Board, a member thereof, or a person designated by the Board. The Home Loan Bank Board shall make written findings. Unless the institution shall appear Hearing. at the hearing by a duly authorized representative, it shall be deemed to have consented to the termination of its status as an insured institution. If the Home Loan Bank Board shall find that any unsafe or unsound practice or violation specified in such notice has been established and has not been corrected within the time above prescribed in which to make such correction, the Home Loan Bank Board may issue its order terminating the insured status of the institution effective on a date subsequent to such finding and to the expiration of the time specified in such notice of intention. The hearing hereinabove provided for shall be held in accordance with the provisions of the Administrative Procedure Act and shall be subject to review as therein provided 60 Stat. 237. and the review by the court shall be upon the weight of the evi- 5 USC 1001 note. dence. In the event of the termination of such status, insurance of its accounts to the extent that they were insured on the date of such notice by the institution to the Corporation or such order of termination, less any amounts thereafter withdrawn, repurchased, or redeemed which reduce the insured accounts of an insured member below the amount insured on the date of such notice or order, shall continue for a period of two years, but no investments or deposits made after the date of such notice or order of termination shall be insured. The Corporation shall have the right to examine such institution from time to time during the two-year period aforesaid. Such insured institution shall be obligated to pay, within thirty days after any such notice or order of termination, as a final insurance premium, a sum equivalent to twice the last annual insurance premium paid by it." SEC. 502. The Federal Home Loan Bank Act, as amended, is hereby amended by striking "$20,000" in section 10 (b) (2) and inserting 12 USC 1430. "$35,000". Home mortgage SEC. 503. The Home Owners' Loan Act of 1933, as amended, is as security. hereby amended 12 USC 1464. (1) by striking "$20,000" wherever it appears in the first paragraph of subsection (c) of section 5 and inserting "$35,000": (2) by amending subsection (d) of section 5 to read as follows: "(d) (1) The Board shall have power to enforce this section Enforcement. and rules and regulations made hereunder. In the enforcement Rules and of any provision of this section or rules and regulations made Regulations. hereunder, or any other law or regulation, and in the administration of conservatorships and receiverships as provided in subsection (d) (2) hereof, the Board is authorized to act in its own |