An Act to extend and amend laws relating to the provision and improvement of housing and the conservation and development of urban communities, and for other purposes.
PL 84-1020 (H.R.11742), enacted 08/07/1956

70 S T A T . ] 
PUBLIC LAW 1020-AUG. 7, 1966 
1091 
Public Law 1020 
CHAPTER 1029 
AN ACT 
August 7, 1956 
To extend and amend laws relating to the provision and improvement of housing 
[H. R. 11742] 
and the conservation and development of urban communities, and for other 
purposes. 
Housing Act of 
1956. 
Ante, p. 11. 
56 Stat. 305. 
Be it efiacted by the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Housing Act of 1956". 
TITLE I—FHA INSURANCE PROGRAMS 
PROPERTY IMPROVEMENT LOANS 
SEC. 101. (a) (1) Section 2 (a) of the National Housing Act is 
\l stau f35^^ 
amended by striking out "Septemoer 30, 1956" and inserting in lieu 
thereof "September 30, 1959". 
(2) The proviso in the second paragraph of section 2 (a) of such 
Act is amended to read as follows: ": Provided^ That this clause (iii) 
may in the discretion of the Commissioner be waived with respect to 
the period of occupancy or completion of any such new residential 
structures". 
(b) Section 2 (b) of such Act is amended— 
(1) by striking out "made for the purpose of financing the 
alteration, repair, or improvement of existing structures exceeds 
$2,500, or for the purpose of financing the construction of new 
structures exceeds $3,000" and inserting in lieu thereof "exceeds 
$3,500"; 
(2) by striking out "except that" in clause (2) and inserting 
in lieu thereof "except that the Commissioner may increase such 
maximum limitation to five years and thirty-two days if he deter-
mines such increase to be in the public interest after giving con-
sideration to the general effect of such increase upon borrowers, 
the building industry, and the general economy, and"; and 
(3) by striking out "$10,000" and inserting in lieu thereof 
"$15,000 nor an average amount of $2,500 per family unit". 
(c) Section 2 (b) of such Act is further amended by striking out 
'•''Provided^ That" and inserting in lieu thereof the following: '•'•Pro-
vided^ That any such obligation with respect to which insurance is 
granted under this section on or after sixty days from the date of the 
enactment of this proviso shall bear interest, and insurance premium 
charges, not exceeding (A) an amount, with respect to so much of 
the net proceeds thereof as does not exceed $2,500, equivalent to $5 
discount per $100 of original face amount of a one-year note payable 
in equal monthly installments, plus (B) an amount, with respect to 
any portion of ih^^ net proceeds thereof in excess of $2,500, equivalent 
to $4 discount per $100 of original face amount of such a note: Pro-
vided further^ That the amounts referred to in clauses (A) and (B) 
of the preceding proviso, when correctly based on tables of calculations 
issued by the Commissioner or adjusted to eliminate minor errors in 
computation in accordance with requirements of the Commissioner, 
shall be deemed to comply with such proviso: Provided further^ That". 
SALES HOUSING INSURANCE 
SEO. 102. (a) Section 203 (b) (2) of the National Housing Act is ^^X P
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amended by striking out "(but, in any case where the dwelling is not 
12'use 1709. 
approved for mortgage insurance prior to the beginning of construc-
tion, 90 per centum)" and inserting in lieu thereof the following: 
62 Stat. 1275. 
1092 
PUBLIC LAW 1020-AUG. 7, 1966 
[70 STAT. 
"(but, in any case where the dwelling is not approved for mortgage 
insurance prior to the beginning of construction, unless the construc-
tion of the dwelling was completed more than one year prior to the 
application for mortgage insurance, 90 per centum) . 
12 vie fyos. 
(b) Section 203 (h) of such Act is amended by striking out "$7,000" 
and inserting in lieu thereof "$12,000". 
RENTAL HOUSING INSURANCE 
?2 us*c fyia. 
SEC. 103. (a) Section 207 (c) (2) of the National Housing Act is 
amended by striking out "80 per centum" and inserting in lieu thereof 
"90 per centum". 
12 u^c m \ 
(b) Section 207 (c) (3) of such Act is amended to read as follows: 
"(3) not to exceed, for such part of such property or project as 
may be attributable to dwelling use, $2,250 per room (or $8,100 
per family unit if the number of rooms in such property or project 
is less than four per family unit) or not to exceed $1,000 per space 
or $300,000 per mortgage for trailer courts or parks: 
Provided, 
That as to projects to consist of elevator type structures, the 
Commissioner may, in his discretion, increase the dollar amount 
limitation of $2,250 per room to not to exceed $2,700 per room 
and the dollar amount limitation of $8,100 per family unit to not 
to exceed $8,400 per family unit, as the case may be, to compensate 
for the higher costs incident to the construction of elevator type 
structures of sound standards of construction and design; except 
that the Commissioner may, by regulation, increase any of 'hg 
foregoing dollar amount limitations per room contained in this 
paragraph by not to exceed $1,000 per room in any geographical 
area where he finds that cost levels so require." 
HOUSING FOR T H E ELDERLY 
«nU ^*io9i^^'' 
^^^' ^^^- (^) Section 203 (b) (2) of the National Housing Act is 
12'use 1709. 
amended by striking out the final period and inserting in lieu thereof 
a comma and the following: "except that with respect to a mortgage 
executed by a mortgagor who is sixty years of age or older as of the 
date the mortgage is accepted for insurance, the mortgagor's payment 
required by this proviso may be paid by a corporation or person other 
than the mortgagor under such terms and conditions as the 
Commissioner may prescribe." 
12 use "13. 
(^) Section 207 (b) of such Act is amended— 
(1) by inserting "(except provisions relating to housing for 
elderly persons)" before "to take" in the unnumbered paragraph 
immediately following paragraph (2); and 
(2) by inserting "(except with respect to housing designed 
for elderly persons, with occupancy preference therefor, as 
provided in the paragraph following paragraph (3) of subsection 
(c))" after "hereunder" in the second unnumbered paragraph 
following paragraph (2). 
12 use" 1*71\ 
(c) Section 207 (c) of such Act is amended by striking out the 
unnumbered paragraph immediately following paragraph (3) and 
inserting in lieu thereof the following new paragraph: 
"Notwithstanding any of the limitations contained in paragraphs 
(2) and (3) of this subsection, if the entire property or project is 
specially designed for the use and occupancy of elderly persons in 
accordance with standards established by the Commissioner and the 
mortgagor is a financially qualified nonprofit organization acceptable 
to the Commissioner, the mortgage may involve a principal obligation 
not in excess of $8,100 per family unit for such part of such property 
70 S T A T . ] 
PUBLIC LAW 1020-AUG. 7, 1956 
1093 
as may be attributable to dwelling use and not in excess of 90 per 
centum of the amount which the Commissioner estimates will be 
the replacement cost of such property or project when the proposed 
physical improvements are completed: Provided^ That the Commis-
sioner shall prescribe such procedures as in his judgment are necessary 
to secure to elderly persons priorities in occupany of the units designed 
for their use." 
(d) The Housing and Home Finance Administrator shall establish, 
in accordance with the provisions of section 601 of the Housing Act 
of 1949, as amended, an advisory committee on matters relating to 
ff ^l}: lyolh. 
housing for elderly persons. 
COOPERATIVE HOUSING INSURANCE 
SEC. 105. (a) Section 213 (a) of the National Housing Act is 
12 us^c mse. 
amended— 
(1) by striking out "or" at the end of paragraph (1); 
(2) by inserting "or" at the end of paragraph (2); 
(3) by adding after 
paragraph 
(2) 
the following 
new 
paragraph : 
"(3) a mortgagor, approved by the Commissioner, which (A) 
has certified to the Commissioner, as a condition of obtaining the 
insurance of a mortgage under this section, that upon completion 
of the property or project covered by such mortgage it intends 
to sell such property or project to a nonprofit corporation or 
nonprofit trust of the character described m paragraph (1) of 
this subsection at the actual cost of such property or project as 
certified pursuant to section 227 of this Act and will faithfully 
f2 ui^c nhr. 
and diligently make and carry out all reasonable efforts to con-
summate such sale, and (B) shall be regulated or restricted by 
the Commissioner as to rents, charges, capital structure, rate of 
return, and methods of operation during any period while it holds 
the mortgaged property or project; and for such purpose the 
Commissioner may make such contracts with, and acquire for 
not to exceed $100 such stock or interest in, any such mortgagor 
as the Commissioner may deem necessary to render effective such 
restriction or regulation, such stock or interest to be paid for 
out of the Housing Fund and to be redeemed by such mortgagor 
at par upon the sale of such property or project to such nonprofit 
corporation or nonprofit trust;"; and 
(4) by adding "referred to in paragraphs (1) and (2) of this 
subsection" after "which corporations or trusts". 
(b) Section 213 (b) (2) of such Act is amended— 
i2us"cmse. 
(1) by striking out "65 per centum" and inserting in lieu 
thereof "50 per centum"; 
(2) by amending the last proviso to read as follows: ": And 
provided further, That for the purposes of this section the word 
'veteran' shall mean a person who has served in the active military 
or naval service of the United States at any time on, or after 
April 6, 1917, and prior to November 12, 1918, or on or after 
September 16, 1940, and prior to July 26, 1947, or on or after 
June 27,1950, and prior to February 1,1955"; and 
(3) by inserting immediately after "$8,900" a semicolon and 
the following: "except that the Commissioner may, by regulation, 
increase any of the foregoing dollar amount limitations per room 
contained in this paragraph by not to exceed $1,000 per room in 
any geographical area where he finds that cost levels so require: 
Provided further, That in the case of a mortgagor of the character 
described in paragraph (3) of subsection (a) the mortgage shall 
1094 
PUBLIC LAW 1020-AUQ. 7, 1966 
[70 STAT. 
involve a principal obligation in an amount not to exceed 85 
per centum of the amount which the Commissioner estimates will 
be the replacement cost of the property or project when the pro-
posed physical improvements are completed: Provided 
further^ 
That upon the sale of a property or project by a mortgagor of the 
character described in paragraph (3) of subsection (a) to a non-
profit cooperative ownership housing corporation or trust within 
two years after the completion of such property or project, the 
mortgage ^iven to finance such sale shall involve a principal 
obligation m an amount not to exceed the maximum amount com-
puted in accordance with this subsection without regard to the 
preceding proviso". 
1
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^^^ Section 213 of such Act is further amended by adding at the 
end thereof the following subsection: 
"(h) In the event that a mortgagor of the character described in 
paragraph (3) of subsection (a) obtains an insured mortgage loan 
pursuant to this section and fails to sell the property or project covered 
by such mortgage to a nonprofit housing corporation or nonprofit 
housing trust of the character described in paragraph (1) of subsection 
(a) hereof, such mortgagor shall not thereafter be eligible by reason 
of such paragraph (3) for insurance of any additional mortgage loans 
pursuant to this section." 
12 use m%. 
(^) Paragraph (a) of section 227 of such Act is amended by in-
serting after "subsection (a) thereof" the following: "or with respect 
to any property or project of a mortgagor of the character described 
in paragraph (3) of subsection (a) thereof". 
GENERAL MORTGAGE INSURANCE AUTHORIZATION 
stJJ 1*3^; ^^*' *^ 
SEC. 106. Section 217 of the National Housing Act is amended— 
1
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(1) by striking out "July 1, 1955" in the first sentence and 
inserting in lieu thereof "July 1,1956"; 
(2) by striking out "$4,000,000,000" in the first sentence and 
inserting in lieu thereof "$3,000,000,000"; and 
(3) by striking out "section 2" in the first and second sentences 
and inserting in lieu thereof "section 2 and section 803". 
HOUSING IN URBAN RENEWAL AREAS 
ffulcfyfsk. 
SEC. 107. (a) Section 220 (d) (3) (B) (ii) of the National Hous-
ing Act is amended by inserting after "Commissioner" in the paren-
thetical phrase a comma and the following: "and shall include an 
allowance for builder's and sponsor's profit and risk of 10 per centum 
of all of the foregoing items except the land unless the Commissioner, 
after certification that such allowance is unreasonable, shall by regula-
tion prescribe a lesser percentage". 
(b) Section 220 (d) (3) (B) (iii) of such Act is amended by strik-
ing out in the first proviso thereof all that follows "construction and 
design" and inserting in lieu thereof a colon and the following: '•'•Pro-
vided^ further^ That the Commissioner may, by regulation, increase 
any of the foregoing dollar amount limitations by not to exceed $1,000 
per room or per family unit, as the case may be, in any geographical 
area where he finds that cost levels so require". 
LOW-COST HOUSING FOR DISPLACED FAMILIES 
12 use 1
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SEC. 108. Section 221 (d) of the National Housing Act is amended— 
(1) by striking out "$7,600" in paragraphs (2) and (3) and 
inserting in lieu thereof "$9,000"; 
70 S T A T . ] 
PUBLIC LAW 1020-AUG. 7, 1956 
1095 
(2) by striking out "$8,600" in paragraphs (2) and (3) and 
inserting in lieu thereof "$10,000"; 
(3) by striking out "95 per centum of the appraised value (as 
of the date the mortgage is accepted for insurance) of a property, 
upon which there is located a dwelling designed principally for a 
single-family residence: Provided^ That the mortgagor shall be 
the owner and occupant of the property at the time of the insur-
ance and shall have paid on account of the property at least 5 per 
centum of the Commissioner's estimate of the cost of acquisition 
in cash or its equivalent" in paragraph (2) and inserting in lieu 
thereof the following: "the appraised value (as of the date the 
mortgage is accepted for insurance) of a property upon which 
there is located a dwelling designed principally for a single-
family residence, less such amount as may be necessary to comply 
with the succeeding proviso: Provided^ That the mortgagor shall 
be the owner and occupant of the property at the time of the insur-
ance and shall have paid on account of the property at least $200 
in cash or its equivalent (which amount may include amounts to 
cover settlement costs and initial payments for taxes, hazard 
insurance, mortgage insurance premium, and other prepaid 
expenses)"; 
(4) by striking out "95 per centum of" in paragraph (3); 
(5) by striking out "agencies thereof" in paragraph (3) and 
inserting in lieu thereof "agencies thereof or the Federal Housing 
Commissioner"; and 
(6) by striking out "thirty" in paragraph (4) and inserting 
in lieu thereof "forty". 
APPROVAL OF COST CERTIFICATIONS 
SEC. 109. Section 227 of the National Housing Act is amended— 
68 stat. 607. 
(1) by inserting after the first sentence the following new 
sentence: "Upon the Commissioner's approval of the mortgagor's 
certification as required hereunder, such certification shall be 
final and incontestable, except for fraud or material misrepre-
sentation on the part of the mortgagor."; 
(2) by inserting after "legal expenses," each place it appears 
in paragraph (c) the following: "such allocations of general 
overhead items as are acceptable to the Commissioner,"; 
(3) by inserting after "maximum insurable mortgage amount" 
in paragraph (b) a semicolon and the following: "except that 
if the mortgage is to assist the financing of repair or rehabilitation 
and no part of the proceeds will be used to finance the purchase 
of the land or structure involved, the approved percentage shall 
be 100 per centum"; and by striking out "(without reduction by 
reason of the application of the approved percentage requirements 
of this section)" in clause (ii) (B) of paragraph (c); 
(4) by amending the proviso in paragraph (c) to read as 
follows: ": Provided^ That such additional amount under (A) 
of this clause (ii) shall in no event exceed the Commissioner's 
estimate of the fair market value of such land and improvements 
prior to such repair or rehabilitation, and such additional amount 
under (B) of this clause (ii) shall in no event exceed the approved 
percentage of the Commissioner's estimate of the fair market 
value of such land and improvements prior to such repair or 
rehabilitation"; and 
(5) by adding at the end of paragraph (c) the following: "In 
the case of a mortgage insured under section 220 where the f
* use litiv. 
mortgagor is also the builder as defined by the Commissioner, 
1096 
PUBUC LAW 1020-AUG. 7, 1956 
[70 STAT 
X 
68 Stat. 596. 
12 u s e 1715k. 
Federal National 
Mortgage Associa-
tion. 
68 Stat. 613. 
12 u s e 1717. 
69 Stat. 647. 
12 u s e 1748b. 
68 Stat. 614. 
12 u s e 1718. 
68 Stat. 615. 
12 u s e 1719. 
68 Stat. 617. 
12 u s e 1720. 
there shall be included in the actual cost, in lieu of the allowance 
for builder's profit under clause (i) or (ii) of the p^^eceding sen-
tence, an allowance for builder's and sponsor's profit and risk of 10 
per centum (unless the Commissioner, after finding that such 
allowance is unreasonable, shall by regulation prescribe a lesser 
percentage) of all other items entering into the term 'actual 
cost' except land or amounts paid for a leasehold and amounts 
included under either (A) or (B) of clause (ii) of the preceding 
sentence. In the case of a mortgage insured under section 220 
where the mortgagor is not also the builder as defined by the 
Commissioner, there shall be included in the actual cost an allow-
ance for sponsor's profit and risk of the said 10 per centum or 
lesser percentage of all other items entering into the term 'actual 
cost' except land or amounts paid for a leasehold, amounts included 
under either (A) or (B) of the said clause (ii), and amounts paid 
by the mortgagor under a general construction contract." 
TITLE II—SECONDAEY MORTGAGE MARKET 
SEC. 201. Section 302 (b) of the National Housing Act is amended— 
(1) by striking out "and (2)" and inserting in lieu thereof 
(2) ; 
(2) by striking out "if (i)" and inserting in lieu thereof "if"; 
and 
(3) by striking out "or (ii) the original principal obligation 
thereof exceeds or exceeded $15,000 for each family residence or 
dwelling unit covered by the mortgage" and inserting in lieu 
thereof "; and (3) the Association may not purchase any mort-
gage, except a mortgage insured under section 803 or a mortgage 
covering property located in Alaska, Guam, or Hawaii, if the 
original principal obligation thereof exceeds or exceeded $15,000 
for each family residence or dwelling unit covered by the 
mortgage". 
SEC. 202. Section 303 (b) of such Act is amended by striking out 
the first sentence and inserting: "The Association shall accumulate 
funds for its capital surplus account from private sources by requir-
ing each mortgage seller to make payments of nonrefundable capital 
contributions equal to 2 per centum of the unpaid principal amounts 
of mortgages purchased or to be purchased by the Association from 
such seller or equal to such other greater or lesser percentage, but 
not less than 1 per centum thereof, as the Association may determine 
from time to time, taking into consideration conditions in the mort-
gage market and the general economy." 
SEC. 203. Section 304 (a) of such Act is amended by striking out 
"at the market price" in the second sentence and inserting "within the 
range of market prices". 
SEC. 204. (a) Section 304 (a) of such Act is amended by adding at 
the end thereof the following new sentence: "Notwithstanding any 
other provision of this section, advance commitments to purchase 
mortgages in secondary market operations under this section shall be 
issued only at prices which are sufficient to facilitate advance plan-
ning of home construction, but which are sufficiently below the price 
then offered by the Association for immediate purchase to prevent 
excessive sales to the Association pursuant to such commitments." 
(b) Section 304 (d) of such Act is amended to read as follows: 
"(d) The Association may not purchase participations in its 
operations under this section." 
SEC. 205. Section 305 (b) of such Act is amended by striking out 
the second sentence and inserting in lieu thereof the following: 
70 S T A T . ] 
P U B U C LAW 1020-AUG. 7, 1956 
1097 
"Notwithstanding any other provision of this section, the price to 
be paid by the Association for mortgages purchased in its operations 
under this section, during a period of one year from the date of the 
enactment of the Housing Act of 1956, shall be not less than 99 per 
centum of the unpaid principal amount thereof at the time of pur-
chase, with adjustments for interest and any comparable items." 
SEC. 206. Section 305 (f) of such Act is amended by striking out 
f2 u#c mo. 
"by the Housing Amendments of 1955" and inserting in lieu thereof 
"on or after August 11,1955". 
SEC. 207. Section 305 (e) of such Act is amended— 
f| fj^^ fs^^^ 
(1) by inserting "and purchase transactions" after the words 
"advance commitment contracts"; 
(2) inserting "or transactions" after the words "if such com-
mitments"; and 
(3) by striking out "but not more than $5,000,000 of such 
authorization shall be available for such commitments in any 
one State" and inserting in lieu thereof "but such commitments 
in any one State shall not exceed $5,000,000 outstanding at any 
one time". 
SEC. 208. So much of section 305 (c) of such Act as precedes the 
^^ st^u 6
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7
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proviso is amended by striking out "purchasers" and inserting in lieu 
thereof "purchases". 
esstat eis 619. 
SEC. 209. (a) The last sentence of section 306 (c) of such Act is 
12 use ira'i. 
amended by striking out "and subsection (e) of this section". 
(b) Section 306 (e) of such Act is repealed. 
TITLE III—SLUM CLEARANCE AND URBAN RENEWAL 
SEC. 301. Section 102 (d) of the Housing Act of 1949 is amended 
ff f^i^ 
f^^i 
by adding at the end thereof the following: "Notwithstanding section 
110 (h) or the use in any other provision of this title of the term 
^| ^^^ ^^^^ 
'local public agency' or 'local public agencies' the Administrator 
may make advances of funds under this subsection for surveys and 
plans for an urban renewal project (including General Neighbor-
hood Renewal Plans as hereinafter defined) to a single local public 
body which has the authority to undertake and carry out a substantial 
portion, as determined by the Administrator, of the surveys and plans 
or the project respecting which such surveys and plans are to be 
made: Provided, 
That the application for such advances shows, to 
the satisfaction of the Administrator, that the filing thereof has been 
approved by the public body or bodies authorized to undertake the 
other portions of the surveys and plans or of the project which the 
applicant is not authorized to undertake." 
SEC. 302. (a) (1) Section 105 (a) of the Housing Act of 1949 is 
68 stat. 625. 
amended by striking out "(including any redevelopment plan con-
stituting a part thereof)". 
(2) Section 110 (b) of such Act is amended by inserting "and" 
^s sta^ 62|^^ 
after the semicolon at the end of clause (1), and by striking out 
"; and (3)" and all that follows and inserting in lieu thereof a 
period. 
(b) (1) Section 110 (c) of such Act is amended to read as 
follows: 
"(c) 'Urban renewal project' or 'project' may include undertakings 
and activities of a local public agency in an urban renewal area for 
the elimination and for the prevention of the development or spread 
of slums and blight, and may involve slum clearance and redevelop-
ment in an urban renewal area, or rehabilitation or conservation in an 
urban renewal area, or any combination or part thereof, in accordance 
1098 
PUBLIC LAW 1020-AUG. 7, 1956 
[70 STAT. 
with such urban reneAval plan. 
Such undertakings and activities 
may inchide— 
" (1) acquisition of (i) a slum area or a deteriorated or deterio-
rating area, or (ii) land which is predominantly open and which 
because of obsolete platting, diversity of ownership, deterioration 
of structures or of site improvements, or otherwise, substantially 
impairs or arrests the sound growth of the community, or (iii) 
open land necessary for sound community growth which is to be 
developed for predominantly residential uses: Provided^ That the 
requirement in paragraph (a) of this section that the area be a 
slum area or a blighted, deteriorated or deteriorating area shall 
not be applicable in the case of an open land project; 
"(2) demolition and removal of buildings and improvements; 
"(3) installation, construction, or reconstruction of streets, 
utilities, parks, playgrounds, and other improvements necessary 
for carrying out in the urban renewal area the urban renewal 
objectives of this title in accordance with the urban renewal plan; 
"(4) disposition of any property acquired in the urban renewal 
area (including sale, initial leasing or retention by the local public 
agency itself) at its fair value for uses in accordance with the 
urban renewal plan; 
" (5) carrying out plans for a program of voluntary repair and 
rehabilitation of buildings or other improvements in accordance 
with the urban renewal plan; and 
" (6) acquisition of any other real property in the urban renewal 
area w^liere necessary to eliminate unhealthful, insanitary or 
unsafe conditions, lessen density, eliminate obsolete or other uses 
detrimental to the public welfare, or otherwise to remove or pre-
vent the spread of blight or deterioration, or to provide land for 
needed public facilities. 
"For the purposes of this title, the term 'project' shall not include 
the construction or improvement of any building, and the term 'rede-
velopment' and derivatives thereof shall mean development as well as 
42 u^c U59. 
redevelopment. 
For any of the purposes of section 109 hereof, the 
term 'j)roject' shall not include any donations or provisions made as 
local grants-in-aid and eligible as such pursuant to clauses (2) and (3) 
Post, p. 1099. 
of section 110 (d) hereof. 
"Financial assistance shall not be extended under this title with 
respect to any urban renewal area which is not clearly predominantly 
residential in character unless such area will be a predominantly 
residential area under the urban renewal plan therefor: Provided^ 
That, where such an area which is not clearly predominantly residen-
tial in character contains a substantial number of slum, blighted, 
deteriorated, or deteriorating dw^ellings or other living accommoda-
tions, the elimination of which would tend to promote the public 
health, safety, and welfare in the locality involved and such area is not 
appropriate for predominantly residential uses, the* Administrator 
may extend financial assistance for such a project, but the aggregate 
of the capital grants made pursuant to this title with respect to such 
projects shall not exceed 10 per centum of the total amount of capital 
grants authorized by this title. 
"In addition to all other powers hereunder vested, where land within 
the purview of clause (1) (ii) or (1) (iii) of the first paragraph of this 
subsection (whether it be predominantly residential or nonresidential 
in character) is to be redeveloped for predominantly nonresidential 
uses, loans and advances under this title may be extended therefor 
if the governing body of the local public agency determines that such 
redevelopment for predominantly nonresidential uses is necessary and 
appropriate to facilitate the proper growth and develojiment of the 
70 S T A T . ] 
PUBLIC LAW 1020-AUG. 7, 1966 
1099 
community in accordance with sound planning standards and local 
community objectives and to afford maximum opportunity for the 
redevelopment of the project area by private enterprise: Provided^ 
That loans and outstanding advances to any local public agency pur-
suant to the authorization of this sentence shall not exceed 2^/2 per 
centum of the estimated gross project costs of the projects undertaken 
under other contracts with such local public agency pursuant to this 
title." 
(2) The first sentence of section 110 (d) of such Act is amended by 
^^ ^^^ ^^^^^ 
striking out the words "either the second or third sentence" in clause 
(2) and inserting "the second sentence". 
(c) The first sentence of section 110 (d) of such Act is amended by 
striking out the phrase ", public facilities financed by special assess-
ments against land in the project area," in clause (3) and adding the 
following proviso before the period at the end of the sentence: ": And 
provided further, That in any case where a public facility furnished 
as a local grant-in-aid is financed in whole or in part by special assess-
ments against real property in the project area acquired by the local 
public agency as part of the project, an amount equal to the total 
special assessments against such real property (or, in the case of a 
computation pursuant to the proviso immediately preceding, the esti-
mated amount of such total special assessments) shall be deducted 
from the cost of such facility for the purpose of computing the amount 
of the local grants-in-aid for the project". 
(d) Section 110 (e) of such Act is amended by adding the following 
at the end thereof: "Where real property in the project area is acquired 
and is owned as part of the project by the local public agency and such 
property is not subject to ad valorem taxes by reason of its ownership 
by the local public agency and payments in lieu of taxes are not 
made on account of such property, there may (with respect to any 
project for which a contract of Federal assistance under this title is 
in force or is hereafter executed) be included, at the discretion of the 
Administrator, in gross project cost an amount equal to the ad valorem 
taxes which would have been levied upon such property if it had been 
subject to ad valorem taxes, but in all cases prorated for the period 
during which such property is owned by the local public agency as 
part of the project, and such amount shall also be considered a cash 
local grant-in-aid within the purview of section 110 (d) hereof. Such 
amount, and the amount of taxes or payments in lieu of taxes included 
in gross project cost, shall be subject to the approval of tlie Adminis-
trator and such rules, regulations, limitations, and conditions as he 
may prescribe." 
SEC. 303. (a) Section 102 (d) of the Housing Act of 1949 is amended 
^"*«' P- »O97. 
by adding the following at the end thereof: 
"In order to facilitate proper preliminary planning for the attain- ^^ ^,*^ood^nliniwai 
ment of the urban renewal objectives of this title, the Administrator Plans, 
may also make advances of funds (in addition to those authorized 
above) to local public agencies for the preparation of General Neigh-
borhood Renewal Plans (as herein defined) for urban renewal areas 
of such scope that the urban renewal activities therein may have to 
be carried out in stages, consistent with the capacity and resources of 
the riBspective local public agency, over an estimated period of not 
more than ten years. No contract for advances for the preparation 
of a General Neighborhood Renewal Plan may be made unless the 
Administrator has determined that: 
"(1) in the interest of sound community planning, it is desir-
able that the urban renewal area be planned for urban renewal 
purposes in its entirety; 
1100 
PUBUC LAW 1020-AUG. 7, 1956 
[70 STAT. 
"(2) the local public agency proposes to undertake promptly 
an urban renewal project embracing at least 10 per centum of 
such area, upon completion of the General Neighborhood Renewal 
Plan and the preparation of an urban renewal plan for such 
project; and 
"(3) the governing body of the locality has by resolution or 
ordinance (i) approved the undertaking of the General Neigh-
borhood Renewal Plan and the submission of an application for 
such advance and (ii) represented that such plan will be used to 
the fullest extent feasible as a guide for the provision of public 
improvements in such area and that the plan will be considered 
in formulating codes and other regulatory measures affecting 
property in the area and in undertaking other local governmental 
activities pertaining to the development, redevelopment, rehabili-
tation, and conservation of the area. 
The contract for any such advance of funds for a General Neighbor-
hood Renewal Plan shall be made upon the condition that such 
advance shall be repaid, with interest at not less than the applicable 
going Federal rate, out of any moneys which become available to the 
local public agency for the undertaking of the first urban renewal 
project in such area: Provided^ That in the event of the undertaking 
of any other project or projects in such area an appropriate allocation 
of the amount of the advance, with interest, may be effected to the 
end that each such project may bear its proper allocable part, as de-
termined by the Administrator, of the cost of the General Neighbor-
hood Renewal Plan. 
As used herein, a General Neighborhood 
Renewal Plan means a preliminary plan (conforming, in the deter-
mination of the governing body of the locality, to the general plan 
of the locality as a whole and to the workable program of the commu-
42 u#c \At\. 
^^^^y meeting the requirements of section 101) which outlines the 
urban renewal activities proposed for the area involved, provides a 
framework for the preparation of urban renewal plans and indicates 
generally, to the extent feasible in preliminary planning, the land 
uses, population density, building coverage, prospective requirements 
for rehabilitation and improvement of property, and any portions of 
the area contemplated for clearance and redevelopment." 
ai^tt p^/ro97.^ ^'*' 
(b) Section 102 (d) of such Act is further amended by striking out 
42'use 1452. 
''The Administrator may make advances of funds to local public 
agencies for" and inserting in lieu thereof "The Administrator may 
make advances of funds to local public agencies for surveys of urban 
areas to determine whether the undertaking of urban renewal projects 
therein may be feasible and for". 
42 use U56. 
SEC. 304. Section 106 (e) of the Housing Act of 1949 is amended 
by 
striking 
out 
"$70,000,000" and 
inserting 
in 
lieu 
thereof 
•'$100,000,000". 
SEC. 305. Section 106 of such Act is further amended by adding 
at the end thereof the following new subsection: 
"(f) (1) Notwithstanding any other provision of this title, an urban 
renewal project respecting which a contract for a capital grant is 
- executed under this title may include the making of relocation pay-
ments (as defined in paragraph (2)) ; and such contract shall provide 
that the capital grant otherwise payable under this title shall be 
increased by an amount equal to such relocation payments and that 
no part of the amount of such relocation payments shall be required 
to be contributed as part of the local grant-in-aid. 
"(2) As used in this subsection, the term 'relocation payments' 
means payments by a local public agency, in connection with a project, 
to individuals, families, and business concerns for their reasonable 
and necessary moving expenses and any actual direct losses of property 
70 STAT.] 
PUBLIC LAW 1020-AUG. 7, 1956 
1101 
except goodwill or profit (which are incurred on and after the date 
of the enactment of the Housing Act of 1956, and for which reim-
bursement or compensation is not otherwise made) resulting from 
their displacement by an urban renewal project included in an urban 
renewal area respecting which a contract for capital grant has been 
executed under this title. 
Such payments shall be made subject to 
such rules and regulations prescribed by the Administrator as are 
in eiFect on the date of execution of the contract for capital grant 
(or the date on which the contract is amended pursuant to para-
graph (3)), and shall not exceed $100 in the case of an individual 
or family, or $2,000 in the case of a business concern. 
"(3) Any contract with a local public agency which was executed 
under this title before the date of the enactment of the Housing Act 
of 1956 may be amended to provide for payments under this subsection 
for expenses and losses incurred on or after such date." 
SEC. 306, Section 104 of such Act is amended to read as follows: 
" us^c us^ 
"REQUIREMENTS FOR LOCAL GRANTS-IN-AID 
"SEC. 104. Every contract for capital grants under this title shall 
require local grants-in-aid in connection with the project involved. 
Such local grants-in-aid, together with the local grants-in-aid to be 
provided in connection with all other projects of the local public 
agency on which contracts for capital grants have theretofore been 
made, shall not be required in excess of one-third of the aggregate net 
project costs of all projects of the local public agency on w^hich con-
tracts for capital grants have been made." 
SEC. 307. (a) Title I of the Housing Act of 1949 is amended by 
J I ^ ^ S V M S I . 
adding at the end thereof the following new section: 
1460. 
"DISASTER AREAS 
"SEC. 111. Where the local governing body certifies, and the Admin-
istrator finds, that an urban area is in need of redevelopment or rehabil-
itation as a result of a flood, fire, hurricane, earthquake, storm, or other 
catastrophe which the President, pursuant to section 2 (a) of the 
Act entitled 'An Act to authorize Federal assistance to States and local 
governments in major disasters, and for other purposes' (Public Law 
4^ ^
*
^
^
* /g^l^ 
875, Eighty-first Congress, approved September 30,1950), as amended, 
has determined to be a major disaster, the Administrator is authorized 
to extend financial assistance under this title for an urban renewal 
project with respect to such area without regard to the following: 
"(1) the 'workable program' requirement in section 101 (c), 
42us*c usi. 
except that any contract for temporary loan or capital grant pur-
suant to this section shall obligate the local public agency to 
comply with the 'workable program' requirement in section 101 
(c) by a future date determined to be reasonable by the Adminis-
trator and specified in such contract; 
"(2) the requirements in section 105 (a) (iii) and section 110 
4 2^usc^i'4"s; 
(b) (1) that the urban renewal plan conform to a general plan ''*^°* 
of the locality as a whole and to the workable program referred 
to in section 101 (c); 
"(3) the 'relocation' requirements in section 105 (c) : Provided^ 
^ ^*^c' tlh. 
That the Administrator finds that the local public agency has 
presented a plan for the encouragement, to the maximum extent 
feasible, of the provision of dwellings suitable for the needs of 
families displaced by the catastrophe or by redevelopment or 
rehabilitation activities; 
"(4) the 'public hearing' requirement in section 105 (d); 
- 1 ^ 
1102 
PUBLIC LAW 102(V-AUG. 7, 1966 
[70 STAT. 
Stat. 626.* 
' 
"(5) the requirements in sections 102 and 110 that the urban 
1460.^^^ 1*52, 
renewal area be a slum area or a blighted, deteriorated, or deterio-
rating area; and 
"(6) the requirements in section 110 with respect to the pre-
dominantly residential character or predominantly residential 
re-use of urban renewal areas. 
In the preparation of the urban renewal plan with respect to a project 
aided under this section, the local public agency shall give due regard 
to the removal or relocation of dwellings from the site of recurring 
floods or other recurring catastrophes in the project area." 
i2us*c msk. 
(b) Subparagraph (A) of section 220 (d) (1) of the National 
Housing Act is amended to read as follows: 
' (A) be located in (i) the area of a slum clearance and urban 
redevelopment project covered by a Federal-aid contract executed 
63 St t 414 
^^ '^ prior approval granted, pursuant to title I of the Housing 
4 2 us'c 145 1
- 
Act of 1949 before the effective date of the Housing Act of 
^^^^' 
1954, or (ii) an urban renewal area (as defined in title I of 
68 Stat. 590. 
^j^g Housiug Act of 1949, as amended) in a community respect-
ing which the Housing and Home Finance Administrator has 
made the certification to the Commissioner provided for by 
42 use 1451. 
section 101 (c) of the Housing Act of 1949, as amended, or (iii) 
the area of an urban renewal project assisted under section 111 
Ante. p. 1101. 
^^ ^^^ Housing Act of 1949, as amended: Provided, That, in the 
case of an area within the purview of clause (i) or (ii) of this 
subparagraph, a redevelopment plan or an urban renewal plan 
(as defined in title I of the Housing Act of 1949, as amended), 
as the case may be, has been approved for such area by the gov-
erning body of the locality involved and by the Housing and 
Home Finance Administrator, and the Administrator has certi-
fied to the Commissioner that such plan conforms to a general 
plan for the locality as a whole and that there exist the necessary 
authority and financial capacity to assure the completion of such 
redevelopment or urban renewal plan: And provided 
further. 
That, in the case of an area within the purview of clause (iii) of 
this subparagraph, an urban renewal plan (as required for projects 
assisted under such section 111) has been approved for such area 
by such governing body and by the Administrator, and the Ad-
ministrator has certified to the Commissioner that such plan 
conforms to definite local objectives respecting appropriate land 
uses, improved traffic, public transportation, public utilities, 
recreational and community facilities, and other public improve-
ments, and that there exist the necessary authority and financial 
capacity to assure the completion of such urban renewal plan, 
and". 
i2ulc f7?«. 
i^) Section 221 (a) of the National Housing Act is amended— 
(1) by adding immediately before the period at the end of the 
first sentence a comma and the following: "or (3) there is being 
carried out an urban renewal project assisted under section 111 
of the Housing Act of 1949, as amended"; and 
(2) by striking out "clause (2)" each place it appears in the 
last proviso and inserting in lieu thereof "clause (2) or (3)". 
(d) The second sentence of section 701 of the Housing Act of 1954 
is amended to read as follows: "The Administrator is further 
authorized to make planning grants for similar planning work (1) in 
metropolitan and regional areas to official State, metropolitan, or 
regional planning agencies empowered under State or local laws to 
perform such planning; (2) to cities, other municipalities, and counties 
having a population of twenty-five thousand or more according to the 
latest decennial census which have suffered substantial damage as a 
Ante, p. 1101. 
68 Stat. 640. 
40 u s e 461. 
64 Stat. 1109. 
42 u s e 1855a. 
70 STAT.] 
PUBLIC LAW 1020-AUG. 7, 1966 
110'3 
result of a flood, fire, hurricane, earthquake, storm, or other catastro-
phe which the President, pursuant to section 2 (a) of the Act entitled 
*An Act to authorize Federal assistance to States and local govern-
ments in major disasters, and for other purposes' (Public Law 875, 
Eighty-first Congress, approved September 30, 1950), as amended, 
has determined to be a major disaster; and (3) to State planning 
agencies, to be used for the provision of planning assistance to the 
cities, other municipalities, and counties referred to in clause (2) 
hereof." 
SEC. 308. The last sentence of section 701 of the Housing Act of 
to vie 46?! 
1954 is amended by striking out "$5,000,000" and inserting in lieu 
thereof "$10,000,000". 
TITLE IV—PUBLIC HOUSING 
LOW-RENT PUBLIC HOUSING 
SEC. 401. (a) Subsection (i) of section 10 of the United States 
^l vie ufo. 
Housing Act of 1937 is amended effective August 1, 1956, to read as 
follows: 
"(i) Notwithstanding any other provision of law, the Authority 
may enter into new contracts for loans and annual contributions after 
July 31,1956, for not more than thirty-five thousand additional dwell-
ing units, which amount shall be increased by thirty-five thousand 
additional dwelling units on July 1, 1957, and may enter into only 
such new contracts for preliminary loans in respect thereto as are 
consistent with the number of dwelling units for which contracts for 
annual contributions may be entered into hereunder: Provided, 
That 
the authority to enter into new contracts for annual contributions with 
respect to each such thirty-five thousand additional dwelling units 
shall terminate two years after the first date on which such authority 
may be exercised under the foregoing provisions of this subsection: 
Provided fv/rther, That any balance of the authorization provided by 
this subsection, as amended by section 108 (b) of the Housing Amend-
ments of 1955, not utilized by July 31, 1956, shall be available in any 
succeeding year: Provided 
further, 
That no such new contract for 
annual contributions for additional units shall be entered into except 
with respect to low-rent housing for a locality respecting which the 
Housing and Home Finance Administrator has made the determina-
tion and certification relating to a workable program as prescribed 
in section 101 (c) of the Housing Act of 1949, as amended: And pro- 
tl use f4"i. 
vided further, That no new contracts for loans and annual contribu-
tions for additional dwelling units in excess of the number authorized 
in this sentence shall be entered into unless authorized by the 
Congress." 
(b) Clause (2) of the third proviso appearing in that part of the 
Independent Offices Appropriation Act, 1953, which is captioned 
Jf use iShb. 
"Annual contributions:" under the heading "PUBLIC HOUSING ADMINIS-
TRATION" is repealed. 
SEC. 402. Section 101 (c) of title I of the Housing Act of 1949, as 
68 stat. 623. 
amended, is amended by inserting the following after the first comma 
'*^ ^^^ ''*^'* 
therein: "or for annual contributions or capital grants pursuant to 
the United States Housing Act of 1937, as amended, for any project 
so stat. sss. 
or projects not constructed or covered by a contract for annual 
"^ ^ 
^ ' 
contributions prior to August 1,1956,". 
SEC. 403. Subsection (d) of section 21 of the United States Housing 
Act of 1937 is amended by striking out the figure "10" in both places 
|3 st|^- ^fjV 
it appears and inserting in lieu thereof the figure "15". 
63 Stat. 423. 
63 Stat. 422. 
1104 
PUBLIC LAW 1020-AUG. 7, 1956 
[70 STAT. 
HOUSING FOR THE ELDERLY 
SEC. 404. (a) Paragraph (2) of section 2 of the United States 
42 u#c u o \ 
Housing Act of 1937 is amended by adding at the end thereof the 
following: "The term 'families' means families consisting of two or 
more persons, a single person sixty-five years of age or over, or the 
remaining member of a tenant family. 
The term 'elderly families' 
means families the head of which (or his spouse) is sixty-five years 
of age or over." 
42 use 1410. 
(b) Section 10 of such Act is amended by adding at the end thereof 
the following new subsection: 
"(m) For the purpose of increasing the supply of low-rent housing 
for elderly families, the Authority may assist the construction of new 
housing or the remodeling of existing housing in order to provide 
accommodations designed specifically for such families. Notwith-
standing the provisions of subsection 10 (g), any public housing 
agency, in respect to dw^elling units suitable to the needs of elderly 
families, may extend a prior preference to such families and may waive 
42 use u 15. 
the provisions of clause (ii) of section 15 (8) (b) with respect to 
such units: Provided, That, as among such families, the 'First' prefer-
ence in subsection 10 (g) shall apply." 
42 u*sc ufs. 
(c) Section 15 (5) of such Act is amended by inserting after the 
M'ord "Alaska" the following: "or $2,250 in the case of accommoda-
tions designed specifically for elderly families". 
FARM-LABOR CAMPS 
42 us*c ui2. 
SEC. 405. Section 12 (f) of the United States Housing Act of 1937 
is amended by adding at the end thereof the following: "Notwith-
standing any other provision of law, upon the filing of a request there-
for within eighteen months after the date of the enactment of this 
sentence, the Authority shall relinquish, transfer, and convey, without 
monetary consideration, all of its rights, title, and interest in and with 
respect to any such project or any part thereof (including such land as 
is determined by the Authority to be reasonably necessary to the opera-
tion of such project, and including contractual rights to revenues, 
reserves, and other proceeds therefrom), (1) in the case of any State 
other than Florida, to any public housing agency whose area of opera-
tion includes the project, upon a finding and certification by the public 
housing agency (which shall be conclusive upon the Authority) that the 
project is needed to house persons and families of low income and that 
preference for occupancy in the project will be given first to low-income 
agricultural workers and their families and second to other low-income 
persons and their families; and (2) in the case of Florida, to any 
public housing agency in the State whenever, under the laws of the 
State, such agency (A) is authorized to acquire and operate such 
project, (B) is required to give preference for occupancy in such proj-
ect, first, to low-income agricultural workers and their families, and 
second, to other low-income persons and their families, (C) is required, 
in the event of the disposition of such project by sale or otherwise, to use 
the proceeds thereof and any available accumulated earnings to con-
struct facilities (which shall be subject to the same preferences as those 
specified in clause (B)) for occupancy by low-income agricultural 
workers and their families in the same area, and (D) is required, so 
long as it continues to own or operate such project, to have on its 
managing board one or more members whose principal occupation is 
farming. Upon the relinquishment and transfer of any such project 
it shall cease to be a low-rent project within the meaning of this Act, 
and the Authority shall have no further jurisdiction over it, except 
70 S T A T . ] 
PUBLIC LAW 1020-AUG. 7, 1956 
1105 
that in any conveyance under the preceding sentence the Authority 
may reserve to the United States any mineral rights of whatsoev-er 
nature upon, in, or under the property, including such rights of access 
to and the use of such parts of the surface of the property as may be 
necessary for mining and saving the minerals. Any project, or part 
thereof not relinquished and conveyed pursuant to this subsection or 
under a contract for disposal pursuant to this subsection within 
eighteen months after the date of the enactment of this sentence shall 
be disposed of by the Authority pursuant to subsection (e) of section 
13 of this Act, notwithstanding the parenthetical clause in such 
so st^^ 895^. 
subsection.". 
DISPOSITION o r DEFENSE HOUSING 
SEC. 406. (a) Notwithstanding the provisions of any other law, 
there are hereby transferred to the jurisdiction of the Department 
of Defense, effective on the first day of the month following enact-
ment of the Housing Act of 1956, all right, title, and interest, includ-
ing contractual rights and obligations and any reversionary interest, 
held by the Federal Government in and with respect to all real and 
personal property comprising the following housing projects: 
Project Numbered: 
Location 
ALA-lDl 
Ozark, Alabama. 
ALA-1D2 
Ozark, Alabama. 
ALA-2D1 
Foley, Alabama. 
ALA-2D2 
Foley, Alabama. 
ARIZ-lDl 
Yuma, Arizona. 
ARIZ-1D2 
Yuma, Arizona. 
ARIZ-3D1 
Flagstaff, Arizona. 
CALr-3Dl 
Oceanside, California. 
CAL(-3D2 
Oceanside, California. 
CALr-4Dl 
Miramar, California. 
CAI^GDl 
San Ysidro, California, 
CAL-7D2 
Barstow, California. 
CAL-9D1 
Barstow, California. 
CALr-9D2 
Barstow, California. 
CAL-lODl 
Twentynine 
Palms, 
California. 
COLO-lDl 
Colorado Springs, Colorado. 
FLA-2D1 
Green Cove Springs, Florida. 
FLA-4D1 
Milton, Florida. 
FLA-8082 
Pensacola, Florida. 
FLA-8084 
Pensacola, Florida. 
GA-lDl 
Hinesville, Georgia. 
KAN-3D1 
Hutchinson, Kansas. 
ME-4D1 
Brunswick, Maine. 
M D - l D l 
Bainbridge, Maryland. 
MO-lDl 
Waynesville, Missouri. 
M0-2D1 
Waynesville, Missouri. 
MO-4D1 
Waynesville, Missouri. 
M0-5D1 
Waynesville, Missouri. 
NEV-2D1 
Fallon, Nevada. 
NC-lDl 
Camp Lejeune, North Carolina. 
NC-3D1 
Camp Lejeune, North Carolina. 
NC-4D1 
Elizabeth City, North Carolina. 
R I - l D l 
Portsmouth, Rhode Island. 
RI-2D1 
Portsmouth, Rhode Island. 
TEX-2D1 
Kingsville, Texas. 
TEX-3D1 
Hondo, Texas. 
TEX-5D1 
Beeville, Texas. 
TEX-5D2 
Beeville, Texas. 
TEX-6D1 
Mission, Texas. 
"VA-6D1 
Quantico, "Virginia. 
VA-lODl 
Yorktown, Virginia. 
VA-12D1 
Yorktown, Virginia. 
VA-13D1 
Williamsburg, Virginia. 
The provisions of title I I I of the Defense Housing and Community 
Facilities and Services Act of 1951, as amended, and of the Act 
^s stat.^303.^ ^
_ 
entitled "An Act to expedite the provision of housing in connection 15920. 
69225 0 - 5 7 - 7 4 ( V o l . 70) 
1106 
PUBLIC LAW 1020-AUG. 7, 1956 
[70 STAT 
54 Stat. 1125. 
42 u s e 1 52 l-
1590. 
12 use l701g-5. 
65 Stat. 303. 
4 2 u s e 159 2-
l592o. 
68 Stat. 645. 
4 2 u s e 1592a. 
Cobalt, Idaho. 
Newport, R. L 
64 Stat. 66. 
42 use 1586. 
Philadelphia, 
Pa. 
54 Stat. 1125. 
4 2 u s e 152 1-
1590. 
with national defense, and for other purposes", approved October 14, 
1940, as amended, shall not apply to any property transferred here-
under and, except as otherwise provided herein, the laws relating to 
similar property of the Department of Defense shall be applicable 
to the property transferred. 
The Department of Defense is author-
ized to utilize any revenues derived from the property transferred 
hereunder, after its transfer, for the maintenance, operation, improve-
ment, and liquidation of such property and for administrative 
expenses in connection therewith. 
There is hereby transferred to 
the Department of the Navy out of the fund entitled "Office of the 
Administrator revolving fund (liquidating programs)" established 
in the Office of the Administrator, Housing and Home Finance 
Agency, under title II of the Independent Offices Appropriation Act, 
1955 (68 Stat. 272, 295), as amended, $375,000 to be available until 
expended for repair and rehabilitation of such property by the Navy. 
(b) Notwithstanding the provisions of this or any other law, any 
housing constructed or acquired under the provisions of title III of 
the Defense Housing and Community Facilities and Services Act 
of 1951, as amended, which is not transferred under the provisions 
of subsection (a) hereof shall, as expeditiously as possible, but not 
later than June 30, 1957, be disposed of on a competitive bid basis to 
the highest responsible bidder upon such terms and after such public 
advertisement as the Housing and Home Finance Administrator may 
deem in the public interest; except that the Administrator may reject 
any bid which he deems less than the fair market value of the property 
and may thereafter dispose of the property by negotiation: Provided, 
That the third proviso in section 302 (b) of such Act shall be applica-
ble to housing disposed of under this subsection, except that project 
numbered IDA-2I)1 at Cobalt, Idaho, shall be sold only for use on 
the site. 
(c) The Housing and Home Finance Administrator is hereby 
directed to convey (pursuant to the provisions of section 606 of the 
Act entitled "An Act to expedite the provision of housing in connec-
tion with national defense, and for other purposes", approved October 
14, 1940, as amended) : (1) Housing project numbered KI-37013 to 
the Housing Authority of the City of Newport, Rhode Island: Pro-
vided, That notwithstanding the provisions of that section or of any 
other law, the agreement required by that section shall permit the use 
of the project in whole or in part for the housing of military personnel 
without regard to their income, and shall require the Authority, in 
selecting tenants, to give a first preference in respect of three hundred 
and sixty dwelling units to such military personnel as the Secretary 
of Defense or his designee prescribes for three years after the date of 
conveyance and to give thirty days' advance notice of available vacan-
cies to such designee, and (2) housing projects numbered PA-36011 
and PA-36012 to the Housing Authority of Philadelphia, Pennsyl-
vania : Provided, That notwithstanding the provisions of that section 
or of any other law, the agreement required by that section shall 
permit the use of the projects in whole or in part for the housing of 
military personnel without regard to their income, and shall require 
the Authority, in selecting tenants, to give a first preference in respect 
of seven hundred dwelling units to such military personnel as the 
Secretary of Defense or his designee prescribes for three years after 
the date of conveyance and to give thirty days' advance notice of avail-
able vacancies to such designee. 
SEC. 407. (a) The Act entitled "An Act to expedite the provision 
of housing in connection with national defense, and for other pur-
poses", approved October 14,1940, as amended, is amended by adding 
at the end thereof the following new section 614: 
70 S T A T . ] 
PUBLIC LAW 1020-AUG. 7, 1956 
1107 
"SEC. 614. (a) Notwithstanding the provisions of this or an;y other 
law, (1) any housing to be sold on-site determined by the Administra-
tor to be permanent, located on lands owned by the United States and 
under the jurisdiction of the Administrator, which is not relinquished, 
transferred, under contract of sale, sold, or otherwise disposed of by 
the administrator under other provisions of this Act or under the 
provisions of other law by January 1, 1957, except housing which is 
determined by the Administrator by that date to be suitable for sale 
in accordance with section 607 (b) of this Act; and (2) any permanent 
housing to be sold off-site which is not relinquished, transferred, under 
contract of sale, sold, or otherwise disposed of prior to the effective 
date of this section shall be disposed of, as expeditiously as possible, 
on a competitive basis to the highest responsible bidder upon such terms 
and after such public advertisement as the Administrator may deem 
in the public interest; except that the Administrator may reject any 
bid which he deems less than the fair market value of the property 
and may thereafter dispose of the property by negotiation. 
"(b) Notwithstanding the provisions of this or any other law, all 
contracts entered into after the enactment of this section for the sale, 
transfer, or other disposal of housing (other than housing subject to 
the provisions of section 607 (b) of this Act) determined by the 
Administrator to be permanent, except contracts entered into pur-
suant to subsection (a) hereof, shall require that if title does not pass 
to the purchaser by April 1, 1957 (or within sixty days thereafter 
if such time is necessary to cure defects in title in accordance with 
the provisions of the contract), the rights of the purchaser shall 
terminate and thereafter the housing shall be sold under the provisions 
of subsection (a) hereof. 
For the purposes of this subsection, title 
shall be considered to nave passed upon the execution of a conditional 
sales contract. 
"(c) The dates set forth in subsections (a) and (b) of this section 
shall not be subject to change by virtue of the provisions of section 
611 of this Act." 
(b) Notwithstanding any other provision of law, the Housing and 
Home Finance Administrator is authorized to sell and convey, at fair 
market value as determined by him on the basis of an appraisal made 
by an independent real-estate expert, to the city of Alexandria, Vir-
ginia, or to the Alexandria Redevelopment and Housing Authority, 
or to any agency or corporation established or sponsored in the public 
interest by such city, all of the right, title, and interest of the United 
States in and to the Chinquapin Village housing project, VA-44131, 
located in Alexandria, Virginia. 
Any sale pursuant to this authoriza-
tion shall be made within six months after the date of the enactment 
of this subsection and shall be on such terms and conditions as the 
Administrator shall determine. 
(c) Notwithstanding any other provision of law, the Housing and 
Home Finance Administrator is authorized and directed to sell and 
convey to the city of Euclid, Ohio, for a total price of $6,125,000, all 
of the right, title, and interest of the United States in and to the 
housing projects known as Euclid Homes (OH-33074) and Lakeshore 
Village (OH-33071) located in Euclid, Ohio. The purchase price 
shall be secured by a mortgage which need not be a general obligation 
of such city, and shall be paid in equal annual installments within 
twenty years from the date of sale with the right of prepayment of 
all or any part thereof. No down-payment shall be required, and the 
unpaid balances shall bear interest at the rate of 41^ per centum per 
annum. The Administrator may impose such other terms and condi-
tions as he may deem necessary or desirable, including a requirement 
64 Stat. 70. 
42 u s e 1587. 
64 Stat. 70. 
42 u s e 1587. 
65 Stat. 314. 
42 u s e lS89a„ 
Alexandria, Va. 
Euclid, Ohio. 
1108 
PUBLIC LAW 1020-AUG. 7, 1966 
[70 STAT. 
that any net revenues be applied by such city as advance payment on 
the last maturing installments of the purchase price. 
Atlanta, Ga. 
(d) (1) Notwithstanding any other provision of law, the Public 
Housing Commissioner is authorized and directed to sell and convey 
by quitclaim deed to the Georgia Institute of Technology, upon full 
payment in cash of the purchase price determined under paragraph 
(2), all of the right, title, and interest of the United States in and to 
that real property (including furniture, fixtures, and equipment 
located on the property on the date of the execution of the contract or 
sale under this subsection), situated in Atlanta, Georgia, known as 
the Tech 
wood Dormitory and more particularly described as follows: 
Commencing at the intersection of the south line of North Avenue 
with the east line of Tech 
wood Drive; thence running north 89 degrees 
45 minutes east 94.47 feet along the south line of North Avenue to the 
east line of property formerly owned by Mrs. Emma L. Ellis; thence 
south 00 degrees 12.5 minutes east 155.0 feet more or less to the south 
line of an alley formerly known as Linden Alley and the north line 
of property formerly owned by Mildred W. Seydel; thence north 89 
degrees 45 minutes east along the south line of said alley 170.0 feet 
more or less to a point in the south side of said alley which is distant 
100.0 feet westerly from the west line of William Street; thence south 
00 degrees 12.5 minutes east 290.0 feet more or less to a point on the 
south side of the former location of Linden Avenue, which point is 
100.0 feet more or less west of the west line of Williams Street; thence 
running south 89 degrees 45 minutes west 281.57 feet more or less along 
the south side of the former location of Linden Avenue to its inter-
section with the east line of Tech 
wood Drive; thence north 00 degrees 
02 minutes east 293.88 feet more or less along the east line of Tech 
wood 
Drive; thence north 6 degrees 06 minutes east 151.98 feet more or less 
along the east line of Tech 
wood Drive to its intersection with the south 
line of North Avenue and the point of beginning. 
(2) The purchase price of the property referred to in paragraph 
(1) shall be the fair market value of the land described in such para-
graph on the date of the execution of the contract of sale under this 
subsection, as determined by the Public Housing Commissioner, ex-
cluding for purposes of such determination the value of any buildings, 
furniture, fixtures, and equipment located on such land. 
(3) If the property referred to in paragraph (1) is not sold and 
conveyed to the Georgia Institute of Technology within six months 
after the date of the enactment of this Act, the Public Housing Com-
missioner shall dispose of such property at public sale to the highest 
competitive bidder. 
co°n" ****"*'"'^' 
(^) ^^^ ^^^^ proviso of subsection (c) of section 108 of the Housing 
69 Stat. 638. 
Amendments or 1955 is amended by striking out "12" and inserting 
in lieu thereof "24". 
PAYMENTS IN LIEU OF TAXES 
SEC. 408. Notwithstanding the provisions of any other law or any 
contract or rule of law, the Public Housing Commissioner shall 
approve payments in lieu of taxes for project fiscal years ending prior 
to April 1, 1956, by each of the following local public agencies in the 
following amounts: 
Housing Authority of the City of Houston (Texas), $200,324.82. 
Quincy Housing Authority (Illinois), $12,549.75. 
Housing Authority of the City of Fresno (California), $6,874.13. 
Reading Housing Authority (Pennsylvania), $11,106.59. 
Huntington, West Virginia, Housing Authority (West Virginia), 
$13,049.38. 
70 STAT.] 
PUBLIC LAW 1020-AUG. 7, 1956 
1109 
Housing Authority of the City of Los Angeles (California), $104,-
765.05. 
Housing Authority of the City of Monroe (Louisiana), $1,560.76. 
Housing Authority of the City of Dothan (Alabama), $1,238.46. 
Housing Authority of the City of Sacramento (California), $26,-
628.29. 
Cincinnati Metropolitan Housing Authority (Ohio), $59,576.64. 
Housing Authority of the City of Tampa (Florida), $22,959.85. 
TITLE V—MH^ITAKY HOUSING 
ARMED SERVICES HOUSING MORTGAGE INSURANCE 
SEC. 501. Section 801 (g) of the National Housing Act is amended 
to read as follows: 
"(g) The term 'State' includes the several States, and Alaska, 
Hawaii, Puerto Rico, the District of Columbia, Guam, the Virgin 
Islands, the Canal Zone, and Midway Island." 
SEC. 502. Section 803 (a) of such Act is amended by striking out 
"September 30, 1956" and inserting in lieu thereof "June 30, 1958". 
SEC. 503. Section 803 (a) of such Act is further amended by striking 
out the first proviso and inserting in lieu thereof the following: ": 
Provided^ That the aggregate amount of principal obligations of all 
mortgages insured under this title (except mortgages insured pur-
suant to the provisions of this title in effect prior to the enactment of 
the Housing Amendments of 1955) shall not exceed $2,300,000,000". 
SEC. 504. Section 803 (b) (2) of such Act is amended by striking 
out all that follows clause (i) and inserting in lieu thereof the follow-
ing: ", and (ii) with the approval of the Commissioner, shall have 
determined that adequate housing is not available for such personnel 
at reasonable rentals within reasonable commuting distance of the 
installation and that the mortgaged property will not, so far as can 
reasonably be foreseen, substantially curtail occupancy in existing 
housing covered by mortgages insured under this Act. 
The housing 
accommodations shall comply with such standards and conditions 
as the Commissioner may prescribe to establish the acceptability of 
such property for mortgage insurance, except that the certification of 
the Secretary of Defense or his designee shall (for purposes of 
mortgage insurance under this title) be conclusive evidence to the 
Commissioner of the existence of the need for such housing. 
How-
over, if the Commissioner does not concur in the housing needs as 
certified by the Secretary, the Commissioner may require the Secre-
tary to guarantee the Armed Services Housing Mortgage Insurance 
Fund against loss with respect to the mortgage covering such housing. 
The Commissioner shall report to the Committees on Banking and 
Currency of the Senate and the House of Representatives each instance 
in which he has required the Secretary to guarantee the Armed 
Services Housing Mortgage Insurance Fund, with reasons therefor. 
There are hereby authorized to be appropriated such sums as may 
be necessary to provide for payment to meet losses arising from such 
guaranty." 
SEC. 505. Section 803 (b) (3) (B) of such Act is amended to read 
as follows: 
"(B) not to exceed an average of $16,500 per family unit for 
such part of such property or project 
(including ranges, 
refrigerators, shades, screens, and fixtures) as may be attributable 
to dwelling use: Provided^ That the replacement cost of the 
property or project as determined by the Commissioner, including 
the estimated value of any usable utilities within the boundaries 
69 Stat. 646. 
12 u s e 1748. 
69 Stat. 647. 
12 u s e 1748b. 
69 Stat. 647. 
12 u s e 1748b. 
R e p o r t to eon-
g r e s s i o n a l com-
mittees. 
Appropriation,, 
69 Stat. 648. 
12 u s e 1748b. 
1110 
PUBLIC LAW 1020-AUG. 7, 1956 
[70 STAT. 
69 Stat. 648. 
12 u s e 1748b. 
69 Stat. 651. 
42 use 1594. 
40 u s e 270a. 
69 Stat, 652. 
42 u s e 1594b. 
69 Stat. 653. 
42 u s e 1594c. 
69 Stat. 646. 
12 u s e 
1720, 
1748-t748g;42USC 
1594-1594e. 
62 Stat. 379, 462. 
5 u s e 626p; 34 
u s e 911b-911d. 
69 Stat. 653. 
42 u s e 
1594 
note. 
of the property or project where owned by the United States 
and not provided for out of the proceeds of the mortgage, shall not 
exceed an average of $16,500 per family unit; and". 
SEC. 506. (a) Section 803 (b) (3) (C) of such Act is amended 
by striking out "eligible builder of" and inserting in lieu thereof 
"eligible bidder with respect to". 
(b) Sections 403 (a) and 403 (b) of the Housing Amendments of 
1955 are amended by striking out "eligible builder" wherever the term 
appears therein and inserting in lieu thereof "eligible bidder". 
(c) Section 403 (a) of the Housing Amendments of 1955 is 
amended by striking out "the builder" wherever appearing therein 
and inserting in lieu thereof "the mortgagor". 
(d) Section 403 (a) of the Housing Amendments of 1955 is 
amended by striking out "with any builder". 
SEC. 507. Section 403 (a) of the Housing Amendments of 1955 is 
further amended by inserting immediately before the last sentence 
the following: "Any such contract shall provide for the furnishing 
by the contractor of a performance bond and a payment bond with a 
surety or sureties satisfactory to the Secretary of Defense, or his 
designee, and the furnishing of such bonds shall be deemed a sufficient 
compliance with the provisions of section 1 of the Act of August 24, 
1935 (49 Stat. 793), and no additional bonds shall be required under 
such section." 
SEC. 508. Section 405 of the Housing Amendments of 1955 is 
amended by striking out "$9,000,000" and inserting in lieu thereof 
"$21,000,000". 
SEC. 509. The second sentence of section 406 of the Housing Amend-
ments of 1955 is amended by inserting after the colon immediately 
following the first proviso the following: '''•Promded further^ That 
such plans, drawings, and specifications, when developed pursuant to 
arrangements made under this section after the date of the enactment 
of the Housing Act of 1956, shall follow the principle of modular 
measure, in order that the housing may be built by conventional con-
struction, on-site fabrication, factory precutting, factory fabrication, 
or any combination of these construction methods:". 
SEC. 510. Title IV of the Housing Amendments of 1955 is amended 
by adding at the end thereof the following new section: 
"SEC. 410. In the construction of housing under the authority of 
this title and title VIII of the National Housing Act, as amended, 
the maximum limitations on net floor area for each unit shall be the 
same as the net floor area permanent limitations prescribed in the 
second, third, and fourth provisos of section 3 of the Act of June 12, 
1948 (62 Stat. 375), or in section 3 of the Act of June 16, 1948 (62 
Stat. 459), other than the first, second, and third provisos thereof." 
SEC. 511. Section 408 of the Housing Amendments of 1955 is 
amended by adding at the end thereof the following: "Nothing con-
tained in the provisions of title VIII of the National Housing Act in 
effect prior to August 11, 1955, or any related provision of law, shall 
be construed to exempt from State or local taxes or assessments the 
interest of a lessee from the Federal Government in or with respect 
to any property covered by a mortgage insured under such provisions 
of title V I I I : Provided^ That, no such taxes or assessments (not paid 
or encumbering such property or interest prior to June 15,1956) on the 
interest of such lessee shall exceed the amount of taxes or assessments 
on other similar property of similar value, less such amount as the 
Secretary of Defense or his designee determines to be equal to (1) 
any payments made by the Federal Government to the local taxing 
or other public agencies involved with respect to such property, plus 
(2) such amount as may be appropriate for any expenditures made 
70 S T A T . ] 
PUBLIC LAW 1020-AUG. 7, 1956 
H H 
by the Federal Government or the lessee for the provision or mainte-
nance of streets, sidewalks, curbs, gutters, sewers, lighting, snow 
removal or any other services or facilities which are customarily 
provided by the State, county, city, or other local taxing authority 
with respect to such other similar property: And provided 
further, 
That the provisions of this section shall not apply to properties leased 
pursuant to the provisions of section 805 of the National Housing 
Act as amended on or after August 11, 1955, which properties shall 
^9 st^at_. esi^^ 
be exempt from State or local taxes or assessments." 
ACQUISITION o r WHERRY ACT HOUSING 
SEC. 512. Section 404 of the Housing Amendments of 1955 is 
|f ^*s^^-fHi^. 
amended to read as follows: 
"SEC. 404. (a) Whenever the Secretary of Defense or his designee 
deems it necessary for the purpose of this title, he may acquire by 
purchase, donation, condemnation, or other means of transfer, any 
land or (with the approval of the Federal Housing Commissioner) 
any housing financed with mortgages insured under the provisions of 
title V I I I of the National Housing Act as in effect prior to the enact- f
^ ^^J; ^/y^g ^^ 
ment of the Housing Amendments of 1955. The purchase price of «««• 
any such housing shall not exceed the Federal Housing Commissioner's 
estimate of the replacement cost of such housing and related property 
(not including the value of any improvements installed or constructed 
with appropriated funds) as of the date of final endorsement for 
mortgage insurance reduced by an appropriate allowance for physical 
depreciation, as determined by the Secretary of Defense or his designee 
upon the advice of the Commissioner: Provided, 
That in any case 
where the Secretary or his designee acquires a project held by the 
Commissioner, the price paid shall not exceed the face value of the 
debentures (plus accrued interest thereon) which the Commissioner 
issued in acquiring such project. 
"(b) Notwithstanding any provision of subsection (a) to the con-
trary, the Secretary of Defense or his designee shall, in the manner 
provided in subsection (a), acquire by purchase, donation, or other 
means of transfer or, if the parties cannot agree upon terms for acq^ii-
sition by such means, by condemnation, any housing constructed under 
the mortgage insurance provisions of title VIII of the National Hous-
ing Act (as in effect prior to the enactment of the Housing Amend-
ments of 1955) which is located at or near a military installation where 
the construction of housing under the Armed Services Housing Mort-
gage Insurance Program has been approved by the Secretary, 
"(c) Condemnation proceedings instituted pursuant to this section 
shall be conducted in accordance with the provisions of the Act of 
August 1,1888 (25 Stat. 357; 40 U. S. C, sec. 257) as amended, or any 
other applicable Federal statute. 
Before any such condemnation 
proceedings are instituted, an effort shall be made to acquire the prop-
erty involved by negotiation. In any condemnation proceedings insti-
tuted pursuant to this section, the court shall not order the party in 
possession to surrender possession in advance of final judgment unless 
a declaration of taking has been filed, and a deposit of the amount 
estimated to be just compensation has been made, under the first sec-
tion of the Act of February 26, 1931 (46 Stat. 1421), providing for 
^o use 258a. 
such declarations. Unless title is in dispute, the court, upon applica-
tion, shall promptly pay to the owner at least 75 per centum of the 
amount so deposited, but such payment shall be made without preju-
dice to any party to the proceeding. In the event that condemnation 
proceedings are instituted in accordance with procedures under such 
Act of February 26,1931, the court shall order that the amount depos- 
4 o u s c 2 s 8 a. 
1112 
PUBLIC LAW 1020-AUG. 7, 1956 
[70 STAT. 
ited shall be paid in a lump sum or over a period not exceeding five 
years in accordance with stipulations executed by the parties in the 
proceedings. In connection with condemnation proceedings which do 
not utilize the procedures under such Act, the Secretary or his designee, 
after final judgment of the court, may pay or agree to pay in a lump 
sum or, in accordance with stipulations executed by the parties to the 
P
roceedings, over a period not exceeding five years the difference 
etween the outstanding principal obligation, plus accrued interest, 
and the price for the property fixed by the court. Unless such pay-
ment is made in a lump sum, the unpaid balance thereof shall bear 
interest at the rate of 4 per centum per annum. 
"(d) Property acquired under this section may be occupied, used, 
and improved for the purposes of this section prior to the approval 
of title by the Attorney General as required by section 355 of the 
40 use 255. 
Revised Statutes, as amended. 
"(e) The Secretary or his designee may, in the case of any housing 
acquired or to be acquired under this section, make arrangements with 
the mortgagee whereby such mortgagee will agree to release and waive 
all requirements of accruals for reserves for replacement, taxes, and 
hazard insurance provided for under the corporate charter and inden-
ture agreement with respect to such housing, upon the execution of 
a written agreement by the Secretary or his designee that the purposes 
for which such reserves and other funds were accrued will be carried 
out. 
"(f) Any housing acquired under this section may be (1) assigned 
as public quarters to military personnel and their dependents; or (2) 
leased to military and civilian personnel for occupancy by them and 
their dependents, upon such terms and conditions as will in the judg-
ment of the Secretary of Defense or his designee be in the best interest 
of the United States, without loss to military personnel of their basic 
allowance for quarters or appropriate allotments. 
Amounts equal 
to the quarters allowances or appropriate allotments of military per-
sonnel to whom such housing is assigned as public quarters under 
clause (1), and the rental charges realized under clause (2), shall be 
deposited in the revolving fund created by subsection (g). 
"(g) There is hereby created a fund which shall be used by the 
Secretary of Defense or his designee as a revolving fund for the pur-
pose of paying for housing and related property acquired under this 
section, paying interest, principal, mortgage insurance premiums, and 
other obligations (except those for maintenance and operation) with 
respect to such housing, and paying expenses incurred in the altera-
tion, improvement, rehabilitation, and repair of such housing. 
The 
amounts and charges referred to in the last sentence of subsection 
(f) of this section, and any savings realized in the operation of section 
42 use "94b 
'*^^' shall be deposited in such fund. For the purposes of the preced-
ing sentence, the term 'savings realized in the operation of section 405' 
means the difference between the amount made available for payments 
under section 405 and the amount actually used in making such 
payments. 
"(h) The Secretary of the Treasury is authorized and directed to 
establish on the books of the Treasury Department the revolving fund 
created pursuant to the authority of this section. 
To provide capital 
for such fund, there is authorized to be appropriated a sum not to 
exceed $50,000,000 and the Secretary of Deiense, with the approval 
of the President, is authorized to transfer from unexpended balances 
of any appropriations of the military departments not carried to the 
surplus fund of the Treasury such sums as may be determined by 
the Secretary of Defense to be necessary to provide adequate capital 
for the revolving fund." 
70 S T A T . ] 
PUBLIC LAW 1 0 2 0 - A U G . 7, 1956 
1113 
TITLE VI—MISCELLANEOUS 
COLLEGE HOUSING 
SEC. 601. Section 401 (d) of the Housing Act of 1950 is amended 
f
^ ^*#c m l 
by striking out "$500,000,000" and inserting in lieu 
thereof 
"$750,000,000". 
RESEARCH 
SEC. 602, (a) The Housing and Home Finance Administrator is 
authorized and directed to undertake such programs of investigation, 
analysis, and research as he determines to be necessary and appropriate 
in the exercise of his responsibilities, including the formulation and 
carrying out of national housing policies and programs. 
Without 
limiting such authority, such programs shall develop and supply data 
and information on— 
(1) the housing inventory of the Nation and the production, 
use, and demolition and conversion of residential structures, and 
such other factors as affect the total supply of housing; 
(2) mortgage market problems; 
(3) the extent to which adequate housing is available to the 
low-income and middle-income families of the Nation through 
public and private means; 
(4^ housmg for elderly persons; 
(5) residential design, assembly methods, and materials use in 
relation to cost, utility, and comfort; and 
(6) characteristics of current and prospective housing markgt 
demand. 
(b) (1) In order to permit the Administrator to carry out the 
functions vested in him by subsection (a) of this section, he is hereby 
authorized to enter into contracts with agencies of State and local gov-
ernments and educational institutions and other nonprofit organiza-
tions and into working agreements with departments and independent 
establishments and agencies of the Federal Government in accordance 
with paragraph (3) of this subsection: Provided^ That the total 
amount of such contracts and w^orking agreements shall not exceed 
$500,000 during the fiscal year 1957, which amount shall be increased 
by further amounts of $1,000,000 on July 1, 1957, and July 1, 1958, 
respectively. 
(2) There are hereby authorized to be appropriated out of any 
money in the Treasury not otherwise appropriated such sums as may 
be necessary to carry out the purposes of this section, including admin-
istrative expenses which are hereby authorized, and amounts neces-
sary to make payments pursuant to contracts or working agreements 
authorized under subsection (b) (1) of this section. 
(3) The provisions of the third and fourth sentences of subsection 
(a) of section 301 of the Housing Act of 1948 and of subsection (c) 
63 stat. 431. 
of section 502 of such Act shall apply to contracts and appropriations 
\\ ^ta?. UM'!' 
pursuant to this section. 
12 use i70ic. 
(c) The Administrator may disseminate (without regard to the 
provisions of section 306 of the Penalty Mail Act of 1948 (39 U. S. C. 
321n)) any data or information acquired or held under this section, 
^2 stat. 1049. 
including related data and information otherwise available to the 
Administrator through the operation of the programs and activities 
of the Housing and Home Finance Agency, in such form as he shall 
determine to be most useful to departments, establishments, and 
agencies of the Federal Government or State or local governments, 
to industry and to the general public. 
1114 
PUBLIC LAW 1020-AUG. 7, 1956 
[70 ST 
A T . 
63 Stat. 431. 
12 u s e 
1701e-
170 I M . 
(d) In carrying out the provisions of this section, the Adminis-
trator is hereby authorized to request and receive such information or 
data as he deems appropriate from private individuals, organizations, 
and other public agencies. Any such information or data shall be 
used only for the purposes for which it is supplied, and no publication 
shall be made by the Administrator whereby the information or 
data furnished by any particular person or establishment can be 
identified, except with the consent of such person or establishment. 
(e) Nothing contained in this section shall limit any authority of 
the Administrator under title I I I of the Housing Act of 1948, as 
amended, or any other provision of law. 
69 Stat. 642. 
4 2 u s e 
1 4 9 1-
1495. 
68 Stat. 636; 69 
Stat. 641. 
12 u s e 1464. 
PUBLIC FACILITY LOANS 
SEC. 603. Title I I of the Housing Amendments of 1955 is amended 
by adding at the end thereof the following new section: 
"SEC. 206. As used in this title, the term 'States' means the several 
States, the District of Columbia, the Commonwealth of Puerto Rico, 
and the Territories and possessions of the United States." 
HOME O W N E R S ' L O A N ACT 
OF 
1 9 3 3 
SEC. 604. (a) Section 5 (c) of the Home Owners' Loan Act of 1933 
is amended by striking out "$2,500" in the proviso at the end of the 
second paragraph and inserting in lieu thereof "$3,500". 
(b) Section 5 (c) of such Act is further amended by striking out 
"15 per centum" in the first sentence and inserting in lieu thereof "20 
per centum". 
65 Stat. 295. 
42 u s e lS91c. 
65 Stat. 305. 
42 u s e 1592c. 
Expiration date. 
Appropriation. 
HOSPITAL CONSTRUCTION 
SEC. 605. (a) Notwithstanding the provisions of section 104 of the 
Defense Housing and Coinmunity Facilities and Services Act of 1951, 
the authority under section 304 of such Act to make loans or grants, 
or other payments to public and nonprofit agencies for the construc-
tion of hospitals is hereby revived and extended with respect to public 
and nonprofit agencies which have, prior to June 30, 1953, applied 
under such section 304 for such loans or grants, or other payments for 
the construction of hospitals, and have been denied such loans or 
grants, or other payments solely because of the unavailability of funds 
for such purpose. 
(b) The authority granted by this section shall expire June 30, 
1958. 
(c) There is hereby authorized to be appropriated the sum of 
$5,000,000 for the purposes of this section for each of the fiscal years 
ending June 30,1957, and June 30,1958. 
63 Stat. 438. 
42 u s e 1481. 
63 Stat. 435. 
42 u s e 1474. 
63 Stat. 438. 
42 u s e 1482. 
FARM HOUSING 
SEC. 606. (a) The first sentence of section 511 of the Housing Act 
of 1949 is amended to read as follows: "The Secretary may issue notes 
and other obligations for purchase by the Secretary of the Treasury 
for the purpose of making loans under this title (other than loans 
under section 504 (b)). 
The total principal amount of such notes 
and obligations issued pursuant to this section during the period 
beginning July 1, 1956, and ending June 30, 1961, shall not exceed 
$450,000,000." 
(b) Section 512 of such Act is amended to read as follows: 
70 S T A T . ] 
PUBLIC LAW 1021-AUG. 7, 1956 
1115 
"CONTRIBUTIONS 
"SEC. 512. In connection with loans made pursuant to section 503, 
the Secretary is authorized to make commitments for contributions 
aggregating not to exceed $10,000,000 during the period beginning 
July 1,1956, and ending June 30,1961." 
(c) Clause (b) of section 513 of such Act is amended to read as 
follows: "(b) not to exceed $50,000,000 for grants pursuant to section 
504 (a) and loans pursuant to section 504 (b) during the period begin-
ning July 1,1956, and ending June 30,1961; and^'. 
(d) This section shall take effect as of July 1,1956. 
SERVICEMEN'S READJUSTMENT ACT OF 
1944 
SEC. 607. Paragraph (C) of subsection (b) of section 512 of the 
Servicemen's Readjustment Act of 1944 is amended by striking out 
"1957" and inserting in lieu thereof "1958". 
Approved August 7, 1956. 
63 Stat. 434. 
42 u s e 1473. 
63 Stat. 438. 
42 u s e 1483. 
Effective dat<i. 
69 Stat. 168. 
38 u s e 6941. 
Public Law 1021 
CHAPTER 1030 
AN ACT 
To amend the Soil Conservation and Domestic Allotment Act and the Agricul-
tural Adjustment Act of 1938 to provide for a Great Plains conservation 
program. 
Be it enacted by the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That section 16 of 
the Soil Conservation and Domestic Allotment Act, as amended, is 
amended (a) by inserting " ( a ) " after the period following "SEC. 16," 
and (b) by adding the following subsection: 
"(b) Notwithstanding any other provision of law— 
"(1) the Secretary is authorized, within the amounts of such 
appropriations as may be provided therefor, to enter into con-
tracts of not to exceed ten years with producers in the Great Plains 
area determined by him to have control for the contract period 
of the farms or ranclies covered thereby. Such contracts shall be 
designed to assist farm and ranch operators to make, in orderly 
progression over a period of years, changes in their cropping 
systems and land uses which are needed to conserve the soil and 
water resources of their farms and ranches and to install the soil 
and water conservation measures needed under such changed sys-
tems and uses. Such contracts shall be in effect during the period 
ending not later than December 31, 1971, on farms and ranches 
in counties in the Great Plains area of the States of Colorado, 
Kansas, Montana, Nebraska, New Mexico, North Dakota, Okla-
homa, South Dakota, Texas, and Wyoming, designated by the 
Secretary as susceptible to serious wind erosion by reason of their 
soil types, terrain, and climatic and other factors. The producer 
shall furnish to the Secretary a plan of farming operations which 
incorporates such soil and water conservation practices and prin-
ciples as may be determined by him to be practicable for maximum 
mitigation of climatic hazards of the area in which the farm is 
located, and which outlines a schedule of proposed changes in 
cropping systems and land use and of the conservation measures 
which are to be carried out on the farm or ranch during the con-
tract period to protect the farm or ranch from erosion and deteri-
oration by natural causes. Under the contract the producer shall 
agree— 
August 7, 1956 
[H. R. 11833] 
S o i l 
eonserva-
tlon and Domestic 
A l l o t m e n t 
Act, 
amendments. 
4 9 Stat. IISI. 
16 u s e 590p. 
Gre at P l a i n s 
conservation pro-
gram.