42 U.S.C. § 1586 — Sale of specific housing projects

Page 4838 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1586 ation or occupancy of the housing by a pur- chaser. (Oct. 14, 1940, ch. 862, title VI, § 605, as added June 28, 1948, ch. 688, § 7, as added Apr. 20, 1950, ch. 94, title II, § 201, 64 Stat. 59; amended Sept. 1, 1951, ch. 378, title VI, § 603(b), (c), 65 Stat. 314; Aug. 2, 1954, ch. 649, title VIII, § 805(1), 68 Stat. 644; Aug. 11, 1955, ch. 783, title I, § 108(d), 69 Stat. 638; Pub. L. 89–174, § 5(a), Sept. 9, 1965, 79 Stat. 669.) Editorial Notes REFERENCES IN TEXT Title II of the Independent Offices Appropriation Act, 1955, referred to in subsec. (a), is title II of act June 24, 1954, ch. 359, 68 Stat. 294. Provisions of title II that au- thorized funds for acquisition of housing sites are not classified to the Code. Subchapters III and VI of this chapter, referred to in subsec. (a), were comprised of sections 1531 to 1536 and 1571 to 1576, respectively, of this title and have been omitted from the Code. For further details, see note set out under section 1522 of this title. Section 1543 of this title, referred to in subsec. (c), was omitted from the Code. AMENDMENTS 1955—Subsec. (a). Act Aug. 11, 1955, authorized Admin- istrator to acquire a fee simple title to lands where he finds that such acquisition will tend to expedite the transition of the city from a war-affected community containing a large number of temporary houses to a community having additional permanent, well-planned, residential neighborhoods. 1954—Subsec. (a). Act Aug. 2, 1954, added second par. 1951—Subsec. (b). Act Sept. 1, 1951, in cl. (2), inserted ‘‘plus 100 per centum of such value’’, substituted ‘‘shall’’ for ‘‘is authorized’’ and ‘‘increase’’ for ‘‘to in- crease’’. Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS For transfer of functions to Secretary of Housing and Urban Development, see note set out under section 1581 of this title. § 1586. Sale of specific housing projects (a) Conditions precedent The Secretary of Housing and Urban Develop- ment is specifically authorized to convey the following housing projects to the following local public housing agencies respectively, if— (1) on or before January 30, 1953, (i) the con- veyance is requested by the governing body of the municipality or county and (ii) the public housing agency has demonstrated to the satis- faction of the Secretary of Housing and Urban Development that there is a need for low-rent housing (as such term is defined in the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.]) within the area of operation of such pub- lic housing agency which is not being met by private enterprise; (2) the Secretary of Housing and Urban De- velopment determines that the project re- quested will meet such need in whole or in part, and is suitable for low-rent housing use; and (3) on or before June 30, 1953, the governing body of the municipality or county enters into an agreement with the public housing agency (satisfactory to the Secretary of Housing and Urban Development) providing for local co- operation and payments in lieu of taxes not in excess of the amount permitted by subsection (c)(5) of this section, and the public housing agency enters into an agreement with the Sec- retary of Housing and Urban Development (in accordance with subsection (c) of this section) or for the administration of the project: State Project num- ber Local public housing agency Alabama .............. 1041 Housing Authority of District of Birmingham. 1061 Housing Authority of Greater Gadsden. 1062 Housing Authority of Greater Gadsden. 1031 Housing Board of Mobile. 1033 Housing Board of Mobile. 1034 Housing Board of Mobile. 1035 Housing Board of Mobile. 1036 Housing Board of Mobile. 1101 Housing Board of Mobile. 1102 Housing Board of Mobile. 1072 Housing Authority of Sylacauga. 1076 Housing Authority of Sylacauga. 1073 Housing Authority of City of Talladega. Arkansas ............. 3023 Housing Authority of City of Conway. California ............ 4031 Housing Authority of City of Fres- no. 4161 Housing Authority of County of Kern. 4141 Housing Authority of County of Kern. 4103 Housing Authority of City of Los Angeles. 4104 Housing Authority of City of Los Angeles. 4108 Housing Authority of City of Los Angeles. 4121 Housing Authority of City of Paso Robles. 4171 Housing Authority of City of Rich- mond. 4174 Housing Authority of City of Rich- mond. Connecticut ......... 6091 Housing Authority of City of Bris- tol. 6024 Housing Authority of Town of East Hartford. 6031 Housing Authority of City of New Britain. 6032 Housing Authority of City of New Britain. 6101 Housing Authority of City of New Haven. 6041 Housing Authority of City of Wa- terbury. 6213 Housing Authority of City of Wa- terbury. District of Colum- bia. 49012 National Capital Housing Author- ity. 49017 National Capital Housing Author- ity. 49044 National Capital Housing Author- ity. Florida ................ 8052 Housing Authority of City of Jack- sonville. 8121 Housing Authority of City of Lake- land. 8062 Housing Authority of City of Miami. 8011 Housing Authority of City of Or- lando. 8082 Housing Authority of City of Pen- sacola. 8084 Housing Authority of City of Pen- sacola. 8085 Housing Authority of City of Pen- sacola. 8131 Housing Authority of City of Sebring. 8041 Housing Authority of City of West Palm Beach. Georgia ............... 9071 Housing Authority of City of Al- bany. 9061 Housing Authority of Macon. 9063 Housing Authority of Macon. 9041 Housing Authority of Savannah. 9042 Housing Authority of Savannah. 9043 Housing Authority of Savannah. Illinois ................ 11081 Madison County Housing Author- ity. 11082 Madison County Housing Author- ity. 11111 Winnebago County Housing Au- thority. Page 4839 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1586 State Project num- ber Local public housing agency 11112 Winnebago County Housing Au- thority. Indiana ................ 12071 Housing Authority of City of Fort Wayne. 12021 Housing Authority of City of South Bend. Louisiana ............ 16051 Housing Authority of Parish of East Baton Rouge. Maryland ............. 18095 Housing Authority of Baltimore City. 18096 Housing Authority of Baltimore City. 18097 Housing Authority of Baltimore City. 18098 Housing Authority of Baltimore City. Massachusetts ..... 19051 Boston Housing Authority. 19021 Chicopee Housing Authority. 19022 Chicopee Housing Authority. 19061 Pittsfield Housing Authority. 19023 Springfield Housing Authority. Michigan ............. 20042 Housing Commission of Detroit. Nevada ................ 26021 Housing Authority of City of Las Vegas. New Hampshire ... 27021 Housing Authority of City of Man- chester. New Jersey .......... 28044 Housing Authority of City of Cam- den. 28021 Housing Authority of City of Long Branch. 28072 Housing Authority of City of New- ark. 28111 Housing Authority of Town of Phil- lipsburg. New York ............ 30031 Buffalo Municipal Housing Author- ity. 30032 Buffalo Municipal Housing Author- ity. 30042 Elmira Housing Authority. 30033 Lackawanna Municipal Housing Authority. 30039 Lackawanna Municipal Housing Authority. 30034 Niagara Falls Housing Authority. 30071 Niagara Falls Housing Authority. 30082 Massena Housing Authority. North Carolina .... 31023 Housing Authority of City of Wil- mington. 31024 Housing Authority of City of Wil- mington. Ohio .................... 33031 Canton Metropolitan Housing Au- thority. 33033 Canton Metropolitan Housing Au- thority. 33021 Cincinnati Metropolitan Housing Authority. 33071 Cleveland Metropolitan Housing Authority. 33074 Cleveland Metropolitan Housing Authority. 33075 Cleveland Metropolitan Housing Authority. 33112 Lorain Metropolitan Housing Au- thority. 33261 Lorain Metropolitan Housing Au- thority. 33262 Lorain Metropolitan Housing Au- thority. 33041 Warren Metropolitan Housing Au- thority. 33043 Warren Metropolitan Housing Au- thority. Oregon ................. 35021 Housing Authority of Portland. Pennsylvania ...... 36051 Housing Authority of County of Beaver. 36058 Housing Authority of County of Beaver. 36041 Housing Authority of Bethlehem. 36042 Housing Authority of Bethlehem. 36044 Housing Authority of Bethlehem. 36151 Allegheny County Housing Author- ity. 36152 Allegheny County Housing Author- ity. 36061 Housing Authority of County of Lawrence. 36021 Housing Authority of City of Erie. 36031 Housing Authority of County of Lycoming. 36011 Housing Authority of Philadelphia. 36012 Housing Authority of Philadelphia. 36014 Housing Authority of Philadelphia. 36015 Housing Authority of Philadelphia. 36016 Housing Authority of Philadelphia. 36101 Housing Authority of City of Pitts- burgh. 36212 Allegheny County Housing Author- ity. 36295 Housing Authority of City of York. Rhode Island ....... 37013 Housing Authority of City of New- port. South Carolina .... 38023 Housing Authority of City of Charleston. State Project num- ber Local public housing agency 38061 Housing Authority of City of Charleston. 38041 Housing Authority of City of Spartanburg. 38042 Housing Authority of City of Spartanburg. Tennessee ............ 40022 Jackson Housing Authority. 40023 Milan Housing Authority. 40011 Nashville Housing Authority. 40025 Trenton Housing Authority. Texas ................... 41064 Housing Authority of City of Cor- pus Christi. 41065 Housing Authority of City of Cor- pus Christi. 41133 Housing Authority of City of Free- port. 41031 Housing Authority of City of Hous- ton. 41131 Housing Authority of City of Lake Jackson. 41101 Housing Authority of City of Min- eral Wells. 41103 Housing Authority of City of Min- eral Wells. 41072 Housing Authority of City of Or- ange. 41032 Housing Authority of City of Pasa- dena. 41141 Housing Authority of City of Tex- arkana. 41121 Housing Authority of City of Wich- ita Falls. Virginia ............... 44131 Alexandria Redevelopment and Housing Authority. 44132 Alexandria Redevelopment and Housing Authority. 44133 Alexandria Redevelopment and Housing Authority. 44135 Alexandria Redevelopment and Housing Authority. 44136 Alexandria Redevelopment and Housing Authority. 44065 Newport News Redevelopment and Housing Authority. 44074 Norfolk Redevelopment and Hous- ing Authority. 44086 Portsmouth Redevelopment and Housing Authority. Washington ......... 45043 Housing Authority of City of Brem- erton. 45277N Housing Authority of County of Clallam. 45315N Housing Authority of County of Clallam. 45133 Housing Authority of County of King. 45052 Housing Authority of City of Se- attle. 45053 Housing Authority of City of Se- attle. 45054 Housing Authority of City of Se- attle. 45055 Housing Authority of City of Se- attle. 45056 Housing Authority of City of Se- attle. 45122 Housing Authority of City of Van- couver. In addition to the authority of the Secretary of Housing and Urban Development under the first sentence of this subsection, the Secretary is specifically authorized to convey any perma- nent war housing project to a local public hous- ing agency if requested in writing, within sixty days after April 20, 1950, by such agency or the executive head of the municipality (or of the county or parish if such project is not in a mu- nicipality) within which the project is located, or by the Governor of the State where an agency of the State has authority to operate the project: Provided, That any conveyance by the Secretary of Housing and Urban Development pursuant to this sentence shall be subject to the same conditions and requirements as provided in this section with respect to a project specifi- cally designated herein. (b) Projects as ‘‘low-rent housing’’ Upon the conveyance by the Secretary of Housing and Urban Development of any such project pursuant to the provisions of this sec- Page 4840 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1586 tion, such project shall constitute and be deemed to be ‘‘low-rent housing’’ as that term is used and defined in the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.] (and to be a low-rent housing project assisted pursuant to that Act, within the meaning of section 1404a(b) of this title). Any instrument of conveyance by the Administrator stating that it is executed under subchapters II to VII of this chapter shall be conclusive evidence of compliance therewith insofar as any title or other interest in the prop- erty is concerned. (c) Conditions and requirements of agreements The agreement between the public housing agency and the Secretary of Housing and Urban Development required by subsection (a) of this section shall contain the following conditions and requirements, and may contain such further conditions, requirements, and provisions as the Secretary determines— (1) during a period of forty years following the conveyance the project shall be adminis- tered as low-rent housing in accordance with subsections 2(1) and 2(2) of the United States Housing Act of 1937 [42 U.S.C. 1402(1) and (2)]: Provided, That if at any time during such pe- riod the public housing agency and the Sec- retary of Housing and Urban Development agree that the project, or any part thereof, is no longer suitable for use as low-rent housing, the project, or part thereof, shall with the ap- proval of the Secretary of Housing and Urban Development be sold by the public housing agency after which the agreement shall be deemed to have terminated with respect to such project or part thereof except that the proceeds from such sale, after payment of the reasonable expense thereof, shall be paid to the Secretary of Housing and Urban Develop- ment, or, with the Secretary’s approval, used to finance the repair or rehabilitation of a project or part thereof conveyed to the public housing agency under this section; (2) the public housing agency shall, within six months following the conveyance, initiate a program for the removal of all families re- siding in the project on the date of conveyance who are ineligible under the provisions of the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.] for continued occupancy therein, and shall have required such ineligible tenants to vacate their dwellings within eighteen months after the initiation of such program: Provided, That military personnel as des- ignated by the Secretary of Defense or his des- ignee shall not be subject to such removal until eighteen months after the date of con- veyance; (3) annually during the term of such agree- ment, the public housing agency shall pay to the Secretary of Housing and Urban Develop- ment all income from the project remaining after deducting the amounts necessary (as de- termined pursuant to regulations of the Sec- retary of Housing and Urban Development) for (i) the payment of reasonable and proper costs of operating, maintaining, and approving such project, (ii) the payments in lieu of taxes au- thorized hereunder, (iii) the establishment and maintenance of reasonable and proper reserves as approved by the Secretary of Housing and Urban Development, and (iv) the payment of currently maturing installments of principal of and interest on any indebtedness incurred by such public housing agency with the ap- proval of the Secretary of Housing and Urban Development: Provided, That the provisions of this paragraph shall not be applicable to any project which is consolidated under a single contract with one or more low-rent projects being assisted under the United States Hous- ing Act of 1937 [42 U.S.C. 1437 et seq.], and all income from any such project conveyed under this section may be commingled with funds of the project or projects with which it is con- solidated and applied in accordance with the requirements of the consolidated contract and the provisions of section 10(c) of the said Act [42 U.S.C. 1410(c)]; (4) during the term of such agreement, the project shall be exempt from all real and per- sonal property taxes levied or imposed by the State, city, county, or other political subdivi- sions; (5) for the tax year in which the conveyance is made and the next succeeding tax year an- nual payments in lieu of taxes may be made to the State, city, county, or other political sub- divisions in amounts not in excess of the real property taxes which would be paid to such State, city, county, or other political subdivi- sions if the project were not exempt from tax- ation; and thereafter, during the term of such agreement, payments in lieu of taxes with re- spect to the project may be made in annual amounts which do not exceed 10 per centum of the annual shelter rents charged in such project; (6) in selecting tenants for such project, the public housing agency shall give such pref- erences as are prescribed by subsection 10(g) of the United States Housing Act of 1937 [42 U.S.C. 1410g], except that for one year after the date of conveyance of a project, the public housing agency shall, to the extent permitted by law, give such preferences, by allocation or otherwise, to military personnel as the Sec- retary of Defense or his designee prescribes to the public housing agency; and (7) upon the occurrence of a substantial de- fault in respect to the requirements and condi- tions to which the public housing agency is subject (as such substantial default shall be defined in such agreement), the public housing agency shall be obligated at the option of the Secretary of Housing and Urban Development, either to convey title in any case where, in the determination of the Secretary of Housing and Urban Development, (which determination shall be final and conclusive), such conveyance of title is necessary to achieve the purposes of this subchapter and the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.], or to deliver possession to the Secretary of Housing and Urban Development of the project, as then constituted, to which such agreement relates: Provided, That in the event of such conveyance of title or delivery of possession, the Secretary of Housing and Urban Development may im- prove and administer such project as low-rent housing, and otherwise deal with such housing Page 4841 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1587 or parts thereof, subject, however, to the limi- tations contained in the applicable provisions of the United States Housing Act of 1937. The Secretary of Housing and Urban Development shall be obligated to reconvey or to redeliver possession of the project, as constituted at the time of reconveyance or redelivery, to such public housing agency or to its successor (if such public housing agency or a successor ex- ists) upon such terms as shall be prescribed in such agreement and as soon as practicable after the Secretary of Housing and Urban De- velopment shall be satisfied that all defaults with respect to the project have been cured, and that the project will, in order to fulfill the purposes of this subchapter and the United States Housing Act of 1937, thereafter be oper- ated in accordance with the terms of such agreement. Any prior conveyances and re- conveyances, deliveries and redeliveries of possession shall not exhaust the right to re- quire a conveyance or delivery of possession of the project to the Secretary of Housing and Urban Development pursuant to this para- graph upon the subsequent occurrence of a substantial default. (d) Disposition of payments At the end of each fiscal year, the total amount of payments during such year to the Secretary of Housing and Urban Development in accordance with subsection (c) of this section shall be covered into the Treasury as miscella- neous receipts. (Oct. 14, 1940, ch. 862, title VI, § 606, as added June 28, 1948, ch. 688, § 7, as added Apr. 20, 1950, ch. 94, title II, § 201, 64 Stat. 59; amended by Ex. Ord. No. 10284, §§ 6, 7, eff. Sept. 4, 1951, 16 F.R. 8971; Ex. Ord. No. 10339, eff. Apr. 7, 1952, 17 F.R. 3012; Ex. Ord. No. 10425, eff. Jan. 16, 1953, 18 F.R. 405; Pub. L. 86–372, title VIII, § 807, Sept. 23, 1959, 73 Stat. 687; Pub. L. 89–174, § 5(a), Sept. 9, 1965, 79 Stat. 669; Pub. L. 93–383, title II, § 207, Aug. 22, 1974, 88 Stat. 669.) Editorial Notes REFERENCES IN TEXT The United States Housing Act of 1937, referred to in subsecs. (a)(1), (b), and (c)(2), (3), (7), is act Sept. 1, 1937, ch. 896, as revised generally by Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 653, which is classified generally to chapter 8 (§ 1437 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note under section 1437 of this title and Ta- bles. Subchapters III and VI of this chapter, referred to in subsec. (b), were comprised of sections 1531 to 1536 and 1571 to 1576, respectively, of this title and have been omitted from the Code. For further details, see note set out under section 1522 of this title. Subsections 2(1) and 2(2) and section 10 of the United States Housing Act of 1937, referred to in subsec. (c)(1), (3), (6), are references to sections 2 and 10 of the Act prior to the general revision of the Act by Pub. L. 93–383. The Act as so revised is classified to section 1437 et seq. of this title. Provisions of former sections 2 and 10 are covered by sections 3 and 5 of the Act which are classified to sections 1437a and 1437d of this title. AMENDMENTS 1974—Subsec. (b). Pub. L. 93–383, § 207(a), struck out provisions relating to payment of capital grants or an- nual contributions to low-rent housing projects. Subsec. (c)(1). Pub. L. 93–383, § 207(b), inserted provi- sion relating to financing repair or rehabilitation of a project or part of project conveyed to public housing agency under this section. 1959—Subsec. (b). Pub. L. 86–372, § 807(1), provided that if any such project is consolidated under a single an- nual contributions contract with any low-rent project being assisted with annual contributions under United States Housing Act of 1937, payment of any annual con- tribution on account of any project so assisted shall not be deemed to be a capital grant or annual contribu- tion with respect to any project conveyed hereunder. Subsec. (c)(3). Pub. L. 86–372, § 807(2), inserted proviso making provisions of subsec. (c)(3) inapplicable to any project which is consolidated under a single contract with one or more low-rent projects being assisted under United States Housing Act of 1937, and permitting com- mingling of income from such project with funds of project or projects with which it is consolidated. Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS For transfer of functions to Secretary of Housing and Urban Development, see note set out under section 1581 of this title. Executive Documents EXECUTIVE ORDER NO. 10284 Ex. Ord. No. 10284, Sept. 4, 1951, extended time for re- quest for conveyance of housing projects from Dec. 31, 1950, to Dec. 31, 1951, and extended time for entering agreements with Public Housing Administration from June 30, 1951, to June 30, 1952. See note set out under section 1589a of this title. EXECUTIVE ORDER NO. 10339 Ex. Ord. No. 10339, Apr. 7, 1952, set out as a note under section 1589a of this title, extended time for request for conveyance of housing projects from Dec. 31, 1951, to Dec. 31, 1952, and extended time for entering agree- ments with Public Housing Administration from June 30, 1952, to June 30, 1953. EXECUTIVE ORDER NO. 10425 Ex. Ord. No. 10425, Jan. 16, 1953, set out as a note under section 1589a of this title, extended time for re- quest for conveyance of housing projects from Dec. 31, 1952, to June 30, 1953. § 1587. Disposition of other permanent war hous- ing (a) Public interest The Secretary of Housing and Urban Develop- ment shall, subject to the provisions of this sec- tion, dispose of permanent war housing, other than housing conveyed pursuant to section 1586 of this title, as promptly as practicable and in the public interest. (b) Preference in sales to individuals Preference in the purchase of any dwelling structure designed for occupancy by not more than four families and offered for separate sale shall be granted to occupants and to veterans over other prospective purchasers for such pe- riod as the Secretary of Housing and Urban De- velopment may determine and in the following order: (1) a veteran who occupies a unit in the dwelling structure to be sold and who intends to continue to occupy such unit; (2) a nonveteran who occupies a unit in the dwelling structure to be sold and who intends to continue to occupy such unit;