be a feasible method for relocating individuals displaced from an urban renewal area, as well as for relocating families.

Subsection (b) further amends section 105(c) of the 1949 act to require the Administrator to issue rules and regulations providing for the establishment for each urban renewal project of a relocation assistance program designed to determine the needs of displacees, including businesses, for relocation assistance, provide information and assistance and minimize the hardships of displacement, and coordinate relocation activities with other project activities and related governmental activities.

Subsection (c) amends section 8(b) of the Small Business Act to direct the Small Business Administration to provide relocation assistance and information for small business concerns to be displaced from urban renewal areas, at the earliest practicable time.

Disposal of land for low- and moderate-income housing

Section 306 amends section 107 (a) and (b) of the 1949 act to permit the sale of real property in an urban renewal area at a special reduced price to purchasers who will use such real property to provide housing for low- or moderate-income individuals. The sale of real property at a special reduced price is already available for housing for low- or moderate-income families.

The revised section 107(b) provides a new method of determining the fair value for the disposition of property in an urban renewal area to local housing agencies undertaking low-rent housing projects. Under the amendment, the price for such property will be the same as in the case of property made available under section 107(a) for rental or cooperative housing for moderate-income families (thus permitting a uniform sales price whether the property is sold for public housing or moderate-income housing purposes). Under prior law, land for public housing was provided at the fair value of the land for private rental housing having physical characteristics similar to the proposed low-rent housing.

Rehabilitation of property in urban renewal areas

Section 307 amends section 110(c) of the 1949 act to prohibit Federal assistance for any urban renewal project providing for demolition and removal of buildings and improvements unless the Administrator determines that the objectives of the urban renewal plan cannot be achieved through rehabilitation of the project area. Projects involving the acquisition and development of air rights sites

Section 308 amends section 110 (c), (d), and (e) of the 1949 act to authorize urban renewal projects for air rights developments to be used in providing sites for low- or moderate-income housing and related facilities and uses. An air rights project can be undertaken in an area which is not itself a slum, blighted, deteriorated, or deteriorating area if it consists principally of land in highways, railway or subway tracks, bridge or tunnel entrances, or other similar facilities which have a blighting influence on surrounding areas.

Such a project, or any other urban renewal project, can, under this section, include the construction of foundations and platforms for provision of air rights sites for housing for families of low or moderate

income, as well as acquisition of the necessary development rights. In no case, however, could noncash local grant-in-aid credit be givenfor the donation of air development rights over streets, alleys, or other public rights-of-way.

The aggregate amount of capital grants for air rights projects cannot exceed 5 percent of the amount of all grants authorized to be contracted for after the date of enactment of the Housing Act of 1964.

Amendment of definition of “going Federal rate"

Section 309 amends section 110 (g) of the 1949 act to require the interest rate set for an urban renewal contract for loan or advance to apply not only to the amount originally authorized, but also to any additional amounts authorized by subsequent amendments to the

contract.

Relocation payments to displaced persons and businesses

Section 310 adds to title I of the 1949 act a new section 114, incorporating the provisions of the previous section 106(f) of this act, relating to relocation payments to displaced business concerns, nonprofit organizations, individuals, and families under the urban renewal program, and providing additional payments in certain cases, as follows:

Families and elderly individuals (62 years of age or over).-A relocation adjustment payment to assist in the acquisition of decent, safe, and sanitary dwellings may be made to families and elderly individuals (62 or over) who are displaced after January 27, 1964 and are unable to secure public housing. The amount of the payment authorized is based on the difference between the average monthly rental required for decent, safe, and sanitary housing of modest standards and 20 percent of the monthly income of the displaced family or elderly individual. The total payment authorized is the amount of money required to make up this difference for a period of 12 months, but not to exceed $500. The amount to which each displaced person or family is entitled can be paid only on his behalf and the entire amount of the payment must be made within 5 months after displacement. Business concerns.-Displaced business concerns with average annual net earnings of less than $10,000 may receive an additional relocation payment of $1,500. This additional payment is available only for displacement occurring on or after January 27, 1964, and for businesses which are not part of an enterprise having an establishment outside the urban renewal area.

In addition, a business concern even though not itself physically displaced from an urban renewal area will be entitled to receive reimbursement for actual moving expenses incurred by it in removing its outdoor advertising displays from an urban renewal area.

Urban renewal contracts executed before enactment of the Housing Act of 1964 may be amended to incorporate the additional payments provided by these new provisions.

Regulations governing relocation payments are required to include provisions to assure that relocation payments shall be made as promptly as possible without regard to any subsequent proceedings, determinations, or events relating to the property which do not bear upon whether the displacement in fact occurred.

Acquisition of property affected by coal mine subsidence or underground mine fires

Section 311 (a) and (b) amend section 110(e) of the 1949 act by adding a new paragraph to authorize a special acquisition price where property acquired for urban renewal purposes has been damaged because of the subsidence or collapse of underlying coal mines, or underground mine fires. This price will be paid only where the owner was a family, individual, business, or nonprofit organization which had acquired the property before the damage first occurred. It will permit an increase in the price otherwise allowable to the owner equal to any diminution in the value of the property which is reasonably attributable to the damage and which represents a loss for which the owner has not received, and cannot receive, compensation. from other sources. Existing contracts may be amended to include these increased acquisition costs where a local public agency is required to pay them under any State or local law in effect on the date of enactment of the Housing Act of 1964.

NEW REHABILITATION LOAN PROGRAM

Rehabilitation loans

Section 312 adds a new rehabilitation program to authorize the Housing Administrator to make low-interest loans to owners or tenants of homes or business property in urban renewal areas to finance the rehabilitation required to make the property conform to code requirements or to carry out the objectives of the urban renewal plan for the area in order to reduce the need for demolition and removal of structures which could be rehabilitated.

Subsection (a) authorizes the Administrator to make such loans, provided the borrower is unable to secure the necessary funds from other sources on reasonable terms and conditions and the loan is an acceptable risk. The Administrator shall utilize local public and private agencies where feasible in making the loans.

Subsection (b) contains definitions of terms used in the section. Subsection (c) provides that the interest rate on any such loan may not exceed 3 percent and the maturity may not exceed 20 years or three-fourths of the remaining economic life of the structure after its rehabilitation, whichever is less. The amount of such loan cannot exceed the cost of rehabilitation (except in the case of refinancing), nor $10,000 in the case of a home or dwelling unit, nor $50,000 in the case of business property. A residential loan is also limited to an amount which when added to any outstanding indebtedness relating to the property creates a total indebtedness which does not exceed the amount of a first mortgage which could be insured by the FHA under its section 220 urban renewal housing program. A nonresidential loan is limited in a similar manner.

A residential loan may exceed the cost of rehabilitation in an amount sufficient to refinance existing indebtedness on the property where this is necessary to keep the monthly payments needed to amortize the debts secured by the home of a low- or moderate-income borrower within 20 percent of his monthly income. However, the amount of the loan will remain subject to the $10,000 limit and limitations otherwise applicable. The Administrator will prescribe the

security to be required and such other terms and conditions as he deems appropriate.

Subsection (d) authorizes the appropriation of up to $50 million for a revolving fund for the new loan program.

Subsection (e) confers upon the Administrator, for purposes of the program, the usual administrative powers.

Subsection (f) authorizes the Administrator to use any Federal or local public or private agency or organization as his agent in carrying out the program.

Subsection (g) provides for the issuance by the Administrator of such rules and regulations, and the imposition by him of such additional requirements and conditions, as may be desirable in carrying out the objectives of the program, including limitations on the amount of the loan and restrictions on the use of the property.

URBAN RENEWAL DEMONSTRATIONS

Urban renewal demonstration program

Section 313 amends section 314 of the Housing Act of 1954 to increase by $5 million the maximum amount of urban renewal grant funds which may be used in carrying out the section 314 urban renewal demonstration grant program. It also provides that the full cost of writing and publishing reports (including summaries and other informational material) on demonstration projects and similar undertakings will be paid from Federal funds. Under previous law at least one-third of all costs of activities under the demonstration grant program had to be paid for by the local public body.

URBAN PLANNING ASSISTANCE

Urban and regional planning grants

Section 314 amends section 701 (a) and (b) of the 1954 act to make the following changes in the program of urban planning:

(1) Permits a grant for planning assistance to any group of adjacent communities of less than 50,000 population and having common or related urban planning problems, whether or not "resulting from rapid urbanization" as previously specified in the statute.

(2) Authorizes grants (where the State planning agency or Governor assents) to regional or metropolitan planning bodies for planning assistance to municipalities under 50,000 population, counties, and certain other types of areas, for which planning assistance could previously be provided only by a State planning agency.

(3) Authorizes three-fourths grants to official governmental planning agencies for any area where there has occurred a substantial reduction in employment opportunities as a result of the complete or partial closing of a Federal installation or a decline in the volume of Federal procurement orders.

(4) Authorizes planning assistance, without regard to the otherwise applicable 50,000 population limitation, to municipalities and counties in any redevelopment areas designated under section 5 of the Area Redevelopment Act. Such designation previously had to be under section 5(a) of that act.

(5) Permits three-fourths grants for certain planning in any redevelopment areas designated under section 5 of the Area Redevelopment

Act (rather than just under sec. 5(a)). The types of areas eligible for such grants are expanded to include Indian reservations and groups of adjacent communities eligible for such grants.

Planning grants for Indian reservations

Section 315(a) amends section 701 (a) of the 1954 act to authorize grants to a State planning agency or, 'in certain cases, to a qualified tribal body designated by the Secretary of the Interior for planning assistance to an Indian reservation.

Subsection (b) amends section 701(d) of the 1954 act to add Indian reservations to the list of areas where comprehensive planning is to be encouraged through urban planning grants, and to add Indian tribal bodies to the list of local public bodies to which the Administrator may provide technical assistance in connection with comprehensive planning.

Eligibility of counties for planning assistance

Section 316 amends section 701 (a) of the 1954 act to authorize urban planning grants to State planning agencies or State agencies designated by the Governors (or to regional or metropolitan planning bodies where the State planning agency or Governor assents) for the provision of planning assistance to counties of 50,000 or more, subject to the requirement that if such a county is within a metropolitan area, the Administrator must find that the planning involved will be coordinated with any comprehensive planning program of the area. Not more than 15 percent of the funds appropriated for the urban planning program after the date of enactment of the 1964 act may be used for grants for counties of 50,000 or more in metropolitan areas. Planning grant authorization

Section 317 amends section 701 (b) of the 1954 act to increase by $30 million the authorization of appropriations for urban planning grants.

Planning problems resulting from Chamizal Treaty of 1963

Section 318 authorizes the Housing and Home Finance Adminstrator to make urban planning grants, under section 701 of the Housing Act of 1954, to the city of El Paso, Tex., to assist it in solving urban planning problems resulting from the Chamizal Treaty of 1963. Any such grants made to El Paso are subject to the same conditions and requirements applicable to other section 701 grants.

SMALL BUSINESS ADMINISTRATION LOANS

Section 319 amends section 7(b) (3) of the Small Business Act to make it clear that the Small Business Administration loans authorized by that section for small business concerns displaced from urban renewal areas may include the purchase or construction of new premises even though the concern involved did not own the premises from which it was displaced.