SENATE AMENDED
PRIOR PRINTER'S NOS. 3001, 3181 PRINTER'S NO. 3759
No. 2355 Session of 1978
INTRODUCED BY MESSRS. IRVIS AND MEBUS, APRIL 11, 1978
SENATOR LEWIS, LOCAL GOVERNMENT, IN SENATE, AS AMENDED,
SEPTEMBER 18, 1978
AN ACT
1 Amending the act of May 28, 1937 (P.L.955, No.265), entitled, as
2 amended, "An act to promote public health, safety, morals,
3 and welfare by declaring the necessity of creating public
4 bodies, corporate and politic, to be known as housing
5 authorities to engage in slum clearance, and to undertake
6 projects, to provide dwelling accommodations for persons of
7 low income; providing for the organization of such housing
8 authorities; defining their powers and duties; providing for
9 the exercise of such powers, including the acquisition of
10 property by purchase, gift or eminent domain, the renting and
11 selling of property, and including borrowing money, issuing
12 bonds, and other obligations, and giving security therefor;
13 prescribing the remedies of obligees of housing authorities;
14 authorizing housing authorities to enter into agreements,
15 including agreements with the United States, the
16 Commonwealth, and political subdivisions and municipalities
17 thereof; defining the application of zoning, sanitary, and
18 building laws and regulations to projects built or maintained
19 by such housing authorities; exempting the property and
20 securities of such housing authorities from taxation; and
21 imposing duties and conferring powers upon the State Planning
22 Board, and certain other State officers and departments,"
23 further regulating contracts. FURTHER PROVIDING FOR POWERS <--
24 AND DUTIES OF AUTHORITIES REGARDING RESIDENTIAL HOUSING AND
25 FURTHER REGULATING CONTRACTS.
26 The General Assembly of the Commonwealth of Pennsylvania
27 hereby enacts as follows:
28 Section 1. Section 11, act of May 28, 1937 (P.L.955, <--
29 No.265), known as the "Housing Authorities Law," is amended by
1 adding a subsection to read:
2 Section 11. Awards of Contracts; Completion Bond; Additional
3 Bond for Protection of Materialmen and Others.--
4 * * *
5 (f) Every contract for the construction, reconstruction,
6 repair, improvement or maintenance of public works shall contain
7 a provision that any steel products used or supplied in the
8 performance of the contract or any subcontracts thereunder shall
9 be from steel made in the United States.
10 Section 2. The provisions of this act shall be construed in
11 a manner consistent with the act of March 3, 1978 (No.3), known
12 as the "Steel Products Procurement Act."
13 Section 3. This act shall take effect in 60 days.
14 SECTION 1. SECTION 2, ACT OF MAY 28, 1937 (P.L.955, NO.265), <--
15 KNOWN AS THE "HOUSING AUTHORITIES LAW," AMENDED DECEMBER 22,
16 1965 (P.L.1167, NO.461), IS AMENDED TO READ:
17 SECTION 2. FINDINGS AND DECLARATION OF POLICY.--IT HAS BEEN
18 DETERMINED BY THE GENERAL ASSEMBLY OF THIS COMMONWEALTH, AND IT
19 IS HEREBY DECLARED AS A MATTER OF LEGISLATIVE FINDING THAT--
20 (A) THERE EXISTS IN URBAN AND RURAL COMMUNITIES, WITHIN THE
21 VARIOUS COUNTIES OF THIS COMMONWEALTH, NUMEROUS SLUMS AND
22 UNSAFE, UNSANITARY, INADEQUATE OR OVERCROWDED DWELLINGS, WHICH
23 CONDITIONS ARE ACCOMPANIED AND AGGRAVATED BY AN ACUTE SHORTAGE
24 OF DECENT, SAFE, AND SANITARY DWELLINGS WITHIN THE FINANCIAL
25 REACH OF PERSONS OF LOW INCOME, SUCH CONDITIONS ARISING FROM
26 OVERCROWDING, DILAPIDATION, FAULTY CONSTRUCTION, OBSOLETE
27 BUILDINGS, LACK OF PROPER LIGHT, AIR, AND SANITARY FACILITIES.
28 (B) THE EXISTENCE OF ANY OF THE ABOVE ENUMERATED CONDITIONS
29 IS PREJUDICIAL TO THE WELFARE OF THE PEOPLE OF THIS COMMONWEALTH
30 BECAUSE SUCH CONDITIONS--(1) ENCOURAGE THE SPREAD OF DISEASE AND
19780H2355B3759 - 2 -
1 IMPAIR PUBLIC HEALTH AND MORALS; (2) INCREASE THE HAZARDS OF
2 FIRES, ACCIDENTS, AND OTHER CALAMITIES WHICH RESULT IN LOSS OF
3 LIFE AND PROPERTY; (3) SUBJECT THE MORAL STANDARDS OF THE PEOPLE
4 TO BAD INFLUENCES WHICH HAVE PERMANENT DELETERIOUS SOCIAL
5 EFFECTS; (4) INCREASE THE VIOLATION OF THE CRIMINAL LAWS OF THE
6 COMMONWEALTH SO AS TO JEOPARDIZE THE SAFETY AND WELL-BEING OF
7 THE INHABITANTS THEREOF; (5) NECESSITATE THE EXPENDITURE OF VAST
8 SUMS OF PUBLIC MONEY, BOTH BY THE COMMONWEALTH AND LOCAL
9 GOVERNMENTAL BODIES, FOR THE PURPOSE OF CRIME PREVENTION,
10 PUNISHMENT, AND CORRECTION, FIRE AND ACCIDENT PREVENTION, PUBLIC
11 HEALTH SERVICE AND RELIEF.
12 (C) THE FAILURE TO REMEDY THE ACUTE DWELLING SHORTAGE IS
13 DIRECTLY RELATED TO THE STAGNATION OF BUSINESS ACTIVITY IN THE
14 CONSTRUCTION, DURABLE GOODS, AND ALLIED INDUSTRIES WHICH ARE
15 CONDUCTED WITHIN THIS COMMONWEALTH, AND THE STAGNATION OF WHICH
16 HAS PRODUCED SERIOUS AND PROLONGED UNEMPLOYMENT, WITH ALL ITS
17 INJURIOUS EFFECTS UPON THE WELFARE OF THE INHABITANTS OF THIS
18 COMMONWEALTH.
19 (D) PRIVATE INDUSTRY ALONE HAS BEEN AND NOW IS UNABLE TO
20 OVERCOME THE OBSTACLES WHICH HAVE PREVENTED AND ARE NOW
21 PREVENTING IT FROM CLEARING SLUM AREAS AND RELIEVING THE
22 SHORTAGE OF DECENT, SAFE, AND SANITARY DWELLINGS FOR PERSONS OF
23 LOW INCOME, AND THE CONSTRUCTION, PURSUANT TO THIS ACT, OF
24 HOUSING PROJECTS FOR PERSONS OF LOW INCOME WOULD THEREFORE NOT
25 BE COMPETITIVE WITH PRIVATE ENTERPRISE.
26 (E) THE WELFARE OF THE COMMONWEALTH IS THREATENED BY THE
27 FACT THAT THROUGHOUT PENNSYLVANIA THE SUPPLY OF RESIDENTIAL
28 HOUSING FACILITIES FOR PERSONS AND FAMILIES OF LOW AND MODERATE
29 INCOME IS INADEQUATE TO MEET THE NEED FOR SUCH HOUSING CREATED
30 BY AN EXPANDING POPULATION, THE WEARING OUT OF OLDER DWELLINGS
19780H2355B3759 - 3 -
1 AND THE ELIMINATION OF SUBSTANDARD DWELLINGS BY GOVERNMENTAL
2 ACTION.
3 (F) MAY OF THE EXISTING RESIDENTIAL HOUSING FACILITIES IN
4 THE COMMONWEALTH ARE IN NEED OF REHABILITATION, IMPROVEMENT OR
5 REPLACEMENT.
6 (G) BECAUSE OF HIGHER CONSTRUCTION COSTS, A SCARCITY OF
7 FINANCING AVAILABLE FOR HOUSING AND THE RESULTING INCREASE IN
8 INTEREST RATES, THE HOUSING NEED WHICH EXISTS IN FACT HAS NOT
9 BEEN ABLE TO FIND ECONOMIC EXPRESSION IN A MARKET DEMAND
10 SUFFICIENT TO ENCOURAGE GREATER PRODUCTION AND SUPPLY OF
11 RESIDENTIAL HOUSING FACILITIES BY PRIVATE INDUSTRY OR TO ATTRACT
12 A SUFFICIENT SUPPLY OF FUNDS TO FINANCE THE ACQUISITION,
13 CONSTRUCTION, REHABILITATION, IMPROVEMENT OR EQUIPPING OF
14 RESIDENTIAL HOUSING FACILITIES TO MEET THE NEEDS OF PERSONS AND
15 FAMILIES OF LOW AND MODERATE INCOME.
16 THEREFORE, IT IS HEREBY DECLARED TO BE THE POLICY OF THE
17 COMMONWEALTH OF PENNSYLVANIA TO PROMOTE THE HEALTH AND WELFARE
18 OF THE INHABITANTS THEREOF BY THE CREATION OF CORPORATE AND
19 POLITIC BODIES TO BE KNOWN AS HOUSING AUTHORITIES. THE PUBLIC
20 PURPOSES FOR WHICH SUCH AUTHORITIES SHALL OPERATE SHALL BE--(1)
21 THE CLEARANCE, REPLANNING, AND RECONSTRUCTION OF THE AREAS IN
22 WHICH SLUMS EXIST; (2) THE PROVIDING OF SAFE AND SANITARY
23 DWELLING ACCOMMODATIONS FOR PERSONS OF LOW INCOME THROUGH NEW
24 CONSTRUCTION FOR THE RECONSTRUCTION, RESTORATION,
25 RECONDITIONING, REMODELING OR REPAIR OF EXISTING STRUCTURES, SO
26 AS TO PREVENT RECURRENCE OF THE ECONOMICALLY AND SOCIALLY
27 DISASTROUS CONDITIONS HEREINBEFORE DESCRIBED; (3) DIRECTLY OR
28 INDIRECTLY PROVIDING FINANCING FOR THE ACQUISITION,
29 CONSTRUCTION, REHABILITATION, IMPROVEMENT OR EQUIPPING OF
30 RESIDENTIAL HOUSING FACILITIES FOR PERSONS AND FAMILIES OF LOW
19780H2355B3759 - 4 -
1 AND MODERATE INCOME, AS DETERMINED BY THE AUTHORITY; AND [(3)]
2 (4) THE ACCOMPLISHMENT OF A COMBINATION OF THE FOREGOING. SUCH
3 PURPOSES ARE HEREBY DECLARED TO BE PUBLIC USES FOR WHICH PUBLIC
4 MONEY MAY BE SPENT, AND PRIVATE PROPERTY ACQUIRED BY THE
5 EXERCISE OF THE POWER OF EMINENT DOMAIN.
6 SECTION 2. CLAUSE (O) OF SECTION 3 OF THE ACT, IS AMENDED TO
7 READ:
8 SECTION 3. DEFINITIONS.--THE FOLLOWING WORDS, TERMS, AND
9 PHRASES, WHERE USED OR REFERRED TO IN THIS ACT, SHALL HAVE THE
10 MEANINGS ASCRIBED TO THEM IN THIS SECTION, EXCEPT IN THOSE
11 INSTANCES WHERE THE CONTEXT CLEARLY INDICATES A DIFFERENT
12 MEANING.
13 * * *
14 (O) "PERSONS OF LOW INCOME." PERSONS OR FAMILIES WHOSE
15 INCOME SHALL NOT EXCEED THE AMOUNT SPECIFIED IN SECTION THIRTEEN
16 OR AS MAY BE DETERMINED BY THE AUTHORITY PURSUANT TO SECTION TEN
17 (EE).
18 * * *
19 SECTION 3. SECTION 10 OF THE ACT, IS AMENDED BY ADDING A
20 CLAUSE TO READ:
21 SECTION 10. POWERS OF AN AUTHORITY.--AN AUTHORITY SHALL
22 CONSTITUTE A PUBLIC BODY, CORPORATE AND POLITIC, EXERCISING
23 PUBLIC POWERS OF THE COMMONWEALTH AS AN AGENCY THEREOF, WHICH
24 POWERS SHALL INCLUDE ALL POWERS NECESSARY OR APPROPRIATE TO
25 CARRY OUT AND EFFECTUATE THE PURPOSE AND PROVISIONS OF THIS ACT,
26 INCLUDING THE FOLLOWING POWERS, IN ADDITION TO OTHERS HEREIN
27 GRANTED:
28 * * *
29 (EE) TO (1) DIRECTLY OR INDIRECTLY MAKE SECURED OR UNSECURED
30 LOANS TO ANY PURCHASER OR OWNER OF RESIDENTIAL HOUSING FOR
19780H2355B3759 - 5 -
1 PERSONS AND FAMILIES OF LOW AND MODERATE INCOME, AS DETERMINED
2 BY THE AUTHORITY, HEREIN CALLED "RESIDENTIAL HOUSING," FOR THE
3 PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION,
4 CONSTRUCTION, REHABILITATION, IMPROVEMENT OR EQUIPPING OF SUCH
5 RESIDENTIAL HOUSING; AND (2) MAKE LOANS TO, OR DEPOSITS, AT THE
6 OPTION OF THE AUTHORITY, WITHOUT REQUIRING COLLATERAL SECURITY
7 THEREFORE NOTWITHSTANDING ANYTHING TO THE CONTRARY ELSEWHERE
8 CONTAINED IN THIS ACT OR IN ANY OTHER ACT, IN ANY FINANCIAL
9 INSTITUTION THAT THE AUTHORITY MAY APPROVE IN ORDER TO ENABLE
10 THAT FINANCIAL INSTITUTION TO FINANCE RESIDENTIAL HOUSING.
11 FOR SUCH PURPOSES, AN AUTHORITY MAY MAKE SUCH LOANS AND
12 DEPOSITS; CHARGE AND COLLECT INTEREST ON SUCH LOANS AS THE
13 AUTHORITY MAY DETERMINE; RECEIVE INTEREST ON SUCH DEPOSITS AS
14 MAY BE AGREED TO WITH THE FINANCIAL INSTITUTION; PURCHASE AND
15 HOLD NOTES SECURED BY MORTGAGES, DEEDS OF TRUST OR SECURITY
16 INTERESTS IN RESIDENTIAL HOUSING OR OTHER PROPERTY;
17 NOTWITHSTANDING ANYTHING TO THE CONTRARY ELSEWHERE CONTAINED IN
18 THIS ACT, ASSIGN, PLEDGE, ENCUMBER OR HYPOTHECATE ANY SECURITY,
19 INCLUDING MORTGAGES OR OTHER SECURITY AGREEMENTS, RECEIVED IN
20 CONNECTION WITH THE FINANCING OF RESIDENTIAL HOUSING AND GRANT
21 TO ANY TRUSTEE, IN ADDITION TO ANY OTHER RIGHTS OR REMEDIES
22 CONTAINED THEREIN OR IN ANY DOCUMENTS GRANTING SUCH SECURITY;
23 AND PURCHASE, OR PROVIDE FOR THE PURCHASE OF, INSURANCE AT RATES
24 APPROVED BY THE AUTHORITY ON ANY SECURITY RECEIVED OR HELD BY,
25 OR GRANTED TO, AUTHORITY IN CONNECTION WITH THE FINANCING OF
26 RESIDENTIAL HOUSING.
27 SECTION 4. SECTION 11 OF THE ACT IS AMENDED BY ADDING A
28 SUBSECTION TO READ:
29 SECTION 11. AWARDS OF CONTRACTS; COMPLETION BOND; ADDITIONAL
30 BOND FOR PROTECTION OF MATERIALMEN AND OTHERS.--* * *
19780H2355B3759 - 6 -
1 (F) EVERY CONTRACT FOR THE CONSTRUCTION, RECONSTRUCTION,
2 ALTERATION, REPAIR, IMPROVEMENT OR MAINTENANCE OF PUBLIC WORKS
3 SHALL CONTAIN A PROVISION THAT ANY STEEL PRODUCTS USED OR
4 SUPPLIED IN THE PERFORMANCE OF THE CONTRACT OR ANY SUBCONTRACTS
5 THEREUNDER SHALL BE FROM STEEL MADE IN THE UNITED STATES. THE
6 PROVISIONS OF THIS ACT SHALL BE CONSTRUED IN A MANNER CONSISTENT
7 WITH THE ACT OF MARCH 3, 1978 (NO.3), KNOWN AS THE "STEEL
8 PRODUCTS PROCUREMENT ACT."
9 SECTION 5. SECTION 17 OF THE ACT, AMENDED MAY 20, 1949
10 (P.L.1614, NO.486), IS AMENDED TO READ:
11 SECTION 17. BONDS OF AN AUTHORITY.--AN AUTHORITY SHALL HAVE
12 POWER TO ISSUE BONDS FOR ANY OF ITS CORPORATE PURPOSES. AN
13 AUTHORITY MAY ISSUE SUCH TYPES OF BONDS AS IT MAY DETERMINE,
14 INCLUDING BONDS ON WHICH THE PRINCIPAL AND INTEREST ARE
15 PAYABLE---(A) EXCLUSIVELY FROM THE INCOME AND REVENUES OF THE
16 HOUSING PROJECT FINANCED WITH THE PROCEEDS OF SUCH BONDS, OR
17 WITH SUCH PROCEEDS TOGETHER WITH A GRANT FROM THE FEDERAL OR
18 STATE GOVERNMENT IN AID OF SUCH PROJECT; (B) EXCLUSIVELY FROM
19 THE INCOME AND REVENUES OF CERTAIN DESIGNATED HOUSING PROJECTS,
20 WHETHER OR NOT THEY WERE FINANCED, IN WHOLE OR IN PART, WITH THE
21 PROCEEDS OF SUCH BONDS; (C) EXCLUSIVELY FROM THE INCOME AND
22 REVENUES, LOANS OR DEPOSITS MADE IN CONNECTION WITH RESIDENTIAL
23 HOUSING; OR [(C)] (D) FROM ITS REVENUES GENERALLY. ANY SUCH
24 BONDS MAY BE ADDITIONALLY SECURED BY A PLEDGE OF ANY REVENUES,
25 INCLUDING GRANTS OR CONTRIBUTIONS FROM THE FEDERAL OR STATE
26 GOVERNMENT OR ANY AGENCY AND INSTRUMENTALITY THEREOF, OR A
27 MORTGAGE OF ANY HOUSING PROJECT, PROJECTS OR OTHER PROPERTY OF
28 THE AUTHORITY.
29 THE BONDS ISSUED BY AN AUTHORITY ARE HEREBY DECLARED TO HAVE
30 ALL THE QUALITIES OF NEGOTIABLE INSTRUMENTS UNDER THE LAW
19780H2355B3759 - 7 -
1 MERCHANT AND THE NEGOTIABLE INSTRUMENTS LAW OF THE COMMONWEALTH
2 OF PENNSYLVANIA.
3 [IF THE BONDS OF AN AUTHORITY CREATED UNDER THE PROVISIONS OF
4 THIS ACT ARE SECURED BY PLEDGE OF ANNUAL CONTRIBUTIONS OR
5 CAPITAL GRANTS TO BE MADE BY THE UNITED STATES GOVERNMENT, THE
6 COMMONWEALTH OF PENNSYLVANIA, OR ANY AGENCY OR INSTRUMENTALITY
7 THEREOF, SUCH BONDS AND THE INCOME THEREFROM SHALL, AT ALL
8 TIMES, BE FREE FROM TAXATION FOR STATE OR LOCAL PURPOSES UNDER
9 ANY LAW OF THIS COMMONWEALTH.] THE EFFECTUATION OF THE
10 AUTHORIZED PURPOSES OF AUTHORITIES CREATED UNDER THIS ACT SHALL
11 AND WILL IN ALL RESPECTS BE FOR THE BENEFIT OF THE PEOPLE OF THE
12 COMMONWEALTH OF PENNSYLVANIA, FOR THE INCREASE OF THEIR COMMERCE
13 AND PROSPERITY AND FOR THE IMPROVEMENT OF THEIR HEALTH AND
14 LIVING CONDITIONS. IN EFFECTUATING SUCH PUBLIC PURPOSES, SUCH
15 AUTHORITIES WILL BE PERFORMING ESSENTIAL GOVERNMENTAL FUNCTIONS.
16 THE BONDS ISSUED BY ANY SUCH AUTHORITY, THEIR TRANSFER AND THE
17 INCOME DERIVED THEREFROM, INCLUDING ANY PROFITS MADE ON THE SALE
18 THEREOF, SHALL AT ALL TIMES BE FREE FROM TAXATION WITHIN THE
19 COMMONWEALTH OF PENNSYLVANIA.
20 NEITHER THE MEMBERS OF THE AUTHORITY NOR ANY PERSON EXECUTING
21 THE BONDS SHALL BE LIABLE PERSONALLY ON ANY SUCH BONDS BY REASON
22 OF THE ISSUANCE THEREOF. SUCH BONDS OR OTHER OBLIGATIONS OF AN
23 AUTHORITY SHALL NOT BE A DEBT OF ANY CITY, COUNTY, MUNICIPAL
24 SUBDIVISION OR OF THE COMMONWEALTH, AND SHALL SO STATE ON THEIR
25 FACE, NOR SHALL ANY CITY, COUNTY, MUNICIPAL SUBDIVISION OR THE
26 COMMONWEALTH, NOR ANY REVENUES OR ANY PROPERTY OF ANY CITY,
27 COUNTY, MUNICIPAL SUBDIVISION OR OF THE COMMONWEALTH BE LIABLE
28 THEREFOR.
29 SECTION 6. SECTION 18 OF THE ACT, AMENDED OCTOBER 5, 1967
30 (P.L.335, NO.144), IS AMENDED TO READ:
19780H2355B3759 - 8 -
1 SECTION 18. FORM AND SALE OF BONDS.--THE BONDS OF AN
2 AUTHORITY SHALL BE AUTHORIZED BY ITS RESOLUTION, SHALL BE ISSUED
3 IN ONE OR MORE SERIES, AND SHALL BEAR SUCH DATE OR DATES, MATURE
4 AT SUCH TIME OR TIMES, AND BEAR INTEREST AT SUCH RATE OR RATES,
5 NOT EXCEEDING SIX PER CENTUM (6%) PER ANNUM, PAYABLE
6 SEMIANNUALLY, BE IN SUCH DENOMINATIONS, BE IN SUCH FORM, EITHER
7 COUPON OR REGISTERED, BE EXECUTED IN SUCH MANNER, BE PAYABLE IN
8 SUCH MEDIUM OF PAYMENT, AT SUCH PLACE OR PLACES, AND BE SUBJECT
9 TO SUCH TERMS OF REDEMPTION, AND CARRY SUCH REGISTRATION
10 PRIVILEGES AS MAY BE PROVIDED IN SUCH RESOLUTION OR IN ANY TRUST
11 INDENTURE OR MORTGAGE PROPERLY MADE IN PURSUANCE THEREOF.
12 THE BONDS OF AN AUTHORITY MAY BE SOLD AT [NOT LESS THAN PAR
13 AND ACCRUED INTEREST.] PUBLIC OR PRIVATE SALE FOR SUCH PRICE OR
14 PRICES AS THE AUTHORITY MAY DETERMINE. THE BONDS SHALL BE SIGNED
15 BY OR SHALL BEAR THE FACSIMILE SIGNATURE OF SUCH OFFICERS AS THE
16 AUTHORITY SHALL DETERMINE, COUPON BONDS SHALL HAVE ATTACHED
17 THERETO INTEREST COUPONS BEARING THE FACSIMILE SIGNATURE OF THE
18 TREASURER OF THE AUTHORITY, AND ALL BONDS SHALL BE AUTHENTICATED
19 BY AN AUTHENTICATING AGENT, FISCAL AGENT OR TRUSTEE, ALL AS MAY
20 BE DETERMINED BY THE AUTHORITY. IN CASE ANY OF THE OFFICERS OF
21 AN AUTHORITY, WHOSE SIGNATURES APPEAR ON ANY BONDS OR COUPONS,
22 SHALL CEASE TO BE OFFICERS BEFORE THE DELIVERY OF SUCH BONDS,
23 THEIR SIGNATURES SHALL NEVERTHELESS BE VALID AND SUFFICIENT FOR
24 ALL PURPOSES THE SAME AS IF SUCH OFFICERS HAD REMAINED IN OFFICE
25 UNTIL SUCH DELIVERY.
26 THE AUTHORITY SHALL HAVE THE POWER, OUT OF ANY FUNDS
27 AVAILABLE THEREFOR, TO PURCHASE ANY BONDS ISSUED BY IT AT A
28 PRICE NOT MORE THAN THE PAR VALUE THEREOF, PLUS ACCRUED
29 INTEREST: PROVIDED, HOWEVER, THAT BONDS PAYABLE EXCLUSIVELY FROM
30 THE REVENUES OF A DESIGNATED PROJECT OR PROJECTS SHALL BE
19780H2355B3759 - 9 -
1 PURCHASED ONLY OUT OF ANY SUCH REVENUES AVAILABLE THEREFROM. ALL
2 BONDS SO PURCHASED SHALL BE CANCELLED. THIS PARAGRAPH SHALL NOT
3 APPLY TO THE REDEMPTION OF BONDS.
4 ANY BOND RECITING IN SUBSTANCE THAT IT HAS BEEN ISSUED BY AN
5 AUTHORITY TO AID IN FINANCING A HOUSING PROJECT OR RESIDENTIAL
6 HOUSING FACILITIES TO ACCOMPLISH THE PUBLIC PURPOSES OF THIS
7 ACT, SHALL BE CONCLUSIVELY DEEMED IN ANY SUIT, ACTION OR
8 PROCEEDING, INVOLVING THE VALIDITY OR ENFORCEABILITY OF SUCH
9 BOND OR SECURITY THEREFOR, TO HAVE BEEN ISSUED FOR SUCH PURPOSE.
10 SECTION 7. SUBSECTION (A) OF SECTION 19 OF THE ACT, IS
11 AMENDED TO READ:
12 SECTION 19. PROVISIONS OF BONDS, TRUST INDENTURES, AND
13 MORTGAGES.--IN CONNECTION WITH THE ISSUANCE OF BONDS OR THE
14 INCURRING OF OBLIGATIONS UNDER LEASES, AND IN ORDER TO SECURE
15 THE PAYMENT OF SUCH BONDS OR OBLIGATIONS, AN AUTHORITY, IN
16 ADDITION TO ITS OTHER POWERS, SHALL HAVE POWER--
17 (A) TO PLEDGE ALL OR ANY PART OF ITS GROSS OR NET RENTS,
18 FEES OR REVENUES TO WHICH ITS RIGHT THEN EXISTS, OR MAY
19 THEREAFTER COME INTO EXISTENCE OR ANY SECURITY, INCLUDING
20 MORTGAGES OR OTHER SECURITY AGREEMENTS, RECEIVED IN CONNECTION
21 WITH THE FINANCING OF RESIDENTIAL HOUSING.
22 * * *
23 SECTION 8. SECTION 22 OF THE ACT, AMENDED OCTOBER 19, 1967
24 (P.L.461, NO.218), IS AMENDED TO READ:
25 SECTION 22. AID FROM FEDERAL GOVERNMENT.--IN ADDITION TO THE
26 POWERS CONFERRED UPON AN AUTHORITY BY OTHER PROVISIONS OF THIS
27 ACT, AN AUTHORITY IS EMPOWERED TO BORROW MONEY OR ACCEPT GRANTS
28 OR OTHER FINANCIAL ASSISTANCE FROM THE FEDERAL GOVERNMENT FOR,
29 OR IN AID OF, ANY HOUSING PROJECT WITHIN ITS AREA OF OPERATION,
30 OR ANY RESIDENTIAL HOUSING FACILITIES, TO TAKE OVER OR LEASE OR
19780H2355B3759 - 10 -
1 MANAGE ANY HOUSING PROJECT OR UNDERTAKING CONSTRUCTED OR OWNED
2 BY THE FEDERAL GOVERNMENT, AND TO THESE ENDS TO COMPLY WITH SUCH
3 CONDITIONS, AND ENTER INTO SUCH MORTGAGES, TRUST INDENTURES,
4 LEASES OR AGREEMENTS AS MAY BE NECESSARY, CONVENIENT OR
5 DESIRABLE. IT IS THE PURPOSE AND INTENT OF THIS ACT TO AUTHORIZE
6 EVERY AUTHORITY TO DO ANY AND ALL THINGS NECESSARY OR DESIRABLE
7 TO SECURE THE FINANCIAL AID OR COOPERATION OF THE FEDERAL
8 GOVERNMENT IN THE UNDERTAKING, CONSTRUCTION, MAINTENANCE OR
9 OPERATION OF ANY HOUSING PROJECT OR ANY RESIDENTIAL HOUSING
10 FACILITIES, BY SUCH AUTHORITY: PROVIDED, THAT UPON COMPLETION OF
11 AN APPLICATION OF AN AUTHORITY FOR FINANCIAL ASSISTANCE OF THE
12 FEDERAL GOVERNMENT IN CONNECTION WITH A HOUSING PROJECT, THE
13 AUTHORITY SHALL FILE WITH THE DEPARTMENT OF COMMUNITY AFFAIRS A
14 REPORT DESCRIBING THE PROJECT, INCLUDING BUT NOT LIMITED TO THE
15 LOCATION AND TYPE OF THE PROJECT, THE NUMBER OF DWELLING UNITS
16 IN THE PROJECT, THE SIZE OF THE INDIVIDUAL DWELLING UNITS
17 EXPRESSED IN NUMBER OF BEDROOMS, THE NUMBER OF DWELLING UNITS OF
18 THE VARIOUS SIZES, THE NUMBER OF DWELLING UNITS PROPOSED FOR THE
19 ELDERLY, AND THE CHARACTER OF ANY COMMERCIAL OR COMMUNITY
20 FACILITIES INCLUDED IN THE PROJECT.
21 SECTION 9. SECTION 22.1. OF THE ACT, ADDED JUNE 5, 1947
22 (P.L.449, NO.203), IS AMENDED TO READ:
23 SECTION 22.1. AID FROM STATE OR LOCAL GOVERNMENT.--IN
24 ADDITION TO THE POWERS CONFERRED UPON AN AUTHORITY BY OTHER
25 PROVISIONS OF THIS ACT, AN AUTHORITY IS EMPOWERED TO ACT AS
26 AGENT OF THE STATE, OR ANY OF ITS POLITICAL SUBDIVISIONS
27 INSTRUMENTALITIES OR AGENCIES, FOR THE PUBLIC PURPOSES SET OUT
28 IN THIS ACT.
29 FURTHER TO EFFECTUATE THE PURPOSES AND PROVISIONS OF THIS
30 ACT, AND IN A MANNER REQUISITE THEREFOR, AN AUTHORITY IS
19780H2355B3759 - 11 -
1 EMPOWERED TO RECEIVE, ACCEPT OR BORROW ANY AND ALL FUNDS
2 APPROPRIATED, GIVEN, GRANTED, LOANED, OR DONATED TO IT, AND TO
3 RECEIVE AND ACCEPT ANY REAL ESTATE AND APPURTENANCES THERETO
4 GIVEN, GRANTED OR DONATED TO IT BY THE STATE OR ANY OF ITS
5 POLITICAL SUBDIVISIONS INSTRUMENTALITIES OR AGENCIES, AND ALL
6 MUNICIPALITIES, POLITICAL SUBDIVISIONS, INSTRUMENTALITIES AND
7 AGENCIES OF THE STATE ARE AUTHORIZED AND EMPOWERED TO GIVE,
8 GRANT, LEND, AND DONATE, WITH OR WITHOUT CONSIDERATION ANY FUNDS
9 AND/OR ANY REAL ESTATE AND APPURTENANCES THERETO TO ANY
10 AUTHORITY TO EFFECTUATE THE PURPOSES AND PROVISIONS OF THIS ACT.
11 SECTION 10. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
12 SECTION 24.1. CONSTRUCTION OF ACT.--NOTHING CONTAINED IN
13 THIS ACT SHALL BE DEEMED TO ALTER, AMEND OR REPEAL THE ACT OF
14 JUNE 13, 1978 (NO.64), ENTITLED "AN ACT AMENDING THE ACT OF JULY
15 14, 1970 (P.L.485, NO.165), ENTITLED 'AN ACT REMOVING FOR A
16 LIMITED TIME THE STATUTORY LIMITS IMPOSED UPON INTEREST RATES
17 AND INTEREST COSTS TO BE PAID ON OBLIGATIONS ISSUED BY STATE AND
18 LOCAL GOVERNMENTS, AUTHORITIES, AGENCIES AND INSTRUMENTALITIES,'
19 CHANGING THE TIME LIMIT."
20 SECTION 11. THIS ACT SHALL TAKE EFFECT IN 60 DAYS.
D4L6RAW/19780H2355B3759 - 12 -