The Waterbury Democrat., 1937-11-27
Federal Authorities
 Studying State Act
Delay in Slum.C Clearance Movement May Be Avoided;
 Less Restrictive Legislation Necessary in Conn.

lay for the six and one-half million dollar um-clearance program at Bridgeport where Q cooperative as- sociation has already been set up in readiness to proceed.
 Procedure
 Concurring with Senator Loner- gans analysis of the law, attorneys for Nathan Straus, Director of the Federal program, said that al- though there may be some difficult ty in raising local contributions to meet Federal requirements unless the State law is amended, several methods of procedure are possible under the Act by which localities can comply.
 Connecticut Is one of thirty states where housing legislation has been enacted, Senator Lonergan said. There is no reason why localities de- string slum- clearance projects should not proceed at once to set up the necessary cooperative con- trol organizations. It is probable, he said, that at the next regular session of the General Assembly amendments may bS offered to make the procedure less restrictive, but there arc no insurmountable ob- stacles in the law at present.
 opinion Quoted
 Senator Lonergan quoted the opinion of Federal Housing Author fly attorneys as follows:
 "The Connecticut Law provides for the creation of housing au- thorities in cities, towns and bor- oughs having a population of i0,- GOO or more. Chapter 3, General Statutes, i936). From our ex- animation of the provisions of this Law 1t appears that the law is satisfactory, although local au- thorities may encounter some dif- ficulty in raising the 10 per cent of the project cost which is re- quired to supplement the 90 per cent loan which may be made by the United States Housing Au- thority.
 "One method which is general ly available for obtaining the necessary 10 per cent contribution toward the construction cost Is through the sale of bonds of the local housing authority on the open market or to municipalities. Under the provisions of the Con- necticut law, there would be some difficulty with the use of this method of raising these local con- tributions because the law pro- vides that the bonds of the local housing authority shall be avail- able for purchase only by the Federal Government (section lO. However, another section of the Act authorizes any municipality located within the area of opera. ton of Q housing authority to ad- vance money to the authority from time to time. Moneys So advanced by way of loan are to be reimbursed by the housing au- thority when 1t has money avail. able for the purpose. This sec ton of the law would appear to permit municipalities to advance funds and take Q ncn-negotiable note from the local authority, which the municipality would continue to hold until paid.
 Another method Is available for obtaining the necessary con- tribution toward the construction cost. This is through Q subsidy from the municipality if1 which the authority operates. This subs sidy may be provided in the form of cash, land or facilities which would otherwise be included in the cost of the project. Under Section 20 of the Connecticut Law, municipalities have adequate powers to provide this form of- local contribution.
 Tn other words, although the Connecticut housing law is more restrictive than the laws of other states regarding the sale of bonds by local authorities, this law makes 1t possible for local author. ities, to obtain the necessary local contributions toward the con- struction cost of projects. If at the next special or regular session of the General Assembly itlis de- sired to modify the restrictive provisions of the existing law. shall be glad to prepare Q draft of the necessary legislation and submit 1t for consideration by the interested officials of the State"
 Leon II. Keyserling.
 Ty&s Atan A,,a lakNa aM