Demonstration Cities and Metropolitan Development Act of 1966

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the “Demonstration Cities and Metropolitan Development Act of 1966”.

Title I—Comprehensive City Demonstration Programs

Findings and Declaration of Purpose

Sec. 101. The Congress hereby finds and declares that improving the quality of urban life is the most critical domestic problem facing the United States. The persistence of widespread urban slums and blight, the concentration of persons of low income in older urban areas, and the unmet needs for additional housing and community facilities and services arising from rapid expansion of our urban population have resulted in a marked deterioration in the quality of the environment and the lives of large numbers of our people while the Nation as a whole prospers.

The Congress further finds and declares that cities, of all sizes, do not have adequate resources to deal effectively with the critical problems facing them, and that Federal assistance in addition to that now authorized by the urban renewal program and other existing Federal grant-in-aid programs is essential to enable cities to plan, develop, and conduct programs to improve their physical environment, increase their supply of adequate housing for low- and moderate-income people, and provide educational and social services vital to health and welfare.

The purposes of this title are to provide additional financial and technical assistance to enable cities of all sizes (with equal regard to the problems of small as well as large cities) to plan, develop, and carry out locally prepared and scheduled comprehensive city demonstration programs containing new and imaginative proposals to rebuild or revitalize large slum and blighted areas; to expand housing, job, and income opportunities; to reduce dependence on welfare payments; to improve educational facilities and programs; to combat disease and ill health; to reduce the incidence of crime and delinquency; to enhance recreational and cultural opportunities; to establish better access between homes and jobs; and generally to improve living conditions for the people who live in such areas, and to accomplish these objectives through the most effective and economical concentration and coordination of Federal, State, and local public and private efforts to improve the quality of urban life.

Basic Authority

Sec. 102. The Secretary of Housing and Urban Development (hereinafter referred to as the “Secretary”) is authorized to make grants and provide technical assistance, as provided by this title, to enable city demonstration agencies (as defined in section 112(2)) to plan, develop, and carry out comprehensive city demonstration programs in accordance with the purposes of this title.

[80 Stat. 1256–1277 omitted (22 pages)]

which are insured by the Secretary of Housing and Urban Development pursuant to title XI of the National Housing Act,”.

(b) Subsection (a) of section 304 of the Trust Indenture Act of 1939 (15 U.S.C. 77ddd) is amended by striking out the word “or” at the end of paragraph (8); by striking out the period at the end of paragraph (9) and inserting in lieu thereof a semicolon and the word “or”; and by adding after paragraph (9) a new paragraph as follows:

“(10) any security issued under a mortgage or trust deed indenture as to which a contract of insurance under title XI of the National Housing Act is in effect; and any such security shall be deemed to be exempt from the provisions of the Securities Act of 1933 to the same extent as though such security were specifically enumerated in section 3(a)(2), as amended, of the Securities Act of 1933 (15 U.S.C. 77c(a)(2)).”

(c) Section 263 of chapter X of the Bankruptcy Act (11 U.S.C. 663) is amended by adding at the end thereof the following: “Nothing contained in this chapter shall be deemed to affect or apply to the creditors of any corporation under a mortgage insured pursuant to title XI of the National Housing Act.”

Title VI—Preservation of Historic Structures

Preservation of Historic Structures as Part of Urban Renewal Projects

Sec. 601. (a) Section 110(b) of the Housing Act of 1949 is amended by inserting “historic and architectural preservation,” after “land acquisition,”.

(b) Section 110(c)(6) of such Act is amended by inserting “to promote historic and architectural preservation,” after “deterioration,”.

(c) Section 110(c) of such Act is further amended by striking out “and” at the end of clause (8), and by striking out clause (9) and inserting in lieu thereof the following:

“(9) relocation within or outside the project area of structures which will be restored and maintained for architectural or historic purposes; and

“(10) restoration of acquired properties of historic or architectural value.”

Local Grant-in-Aid Credit for Relocation and Restoration of Historic Structures

Sec. 602. Clause (2) of section 110(d) of the Housing Act of 1949 is amended by striking out “clause (2) and clause (3)” and inserting in lieu thereof “clauses (2), (3), (9), and (10)”.

Grants to National Trust for Historic Preservation to Cover Restoration Costs

Sec. 603. (a) The Secretary of Housing and Urban Development is authorized to make grants to the National Trust for Historic Preservation, on such terms and conditions and in such amounts (not exceeding $90,000 with respect to any one structure) as he deems appropriate, to cover the costs incurred by such Trust in renovating or restoring structures which it considers to be of historic or architectural value and which it has accepted and will maintain (after such renovation or restoration) for historic purposes.

(b) There are authorized to be appropriated such sums as may be necessary for the grants to be made under subsection (a).

[80 Stat. 1279–1295 omitted (17 pages)]

(c) The last sentence of section 305(e) of the National Housing Act is amended by striking out “supplementing” and inserting in lieu thereof “supplementary”.

(d) Section 308 of the National Housing Act is amended by striking out “(a)”.

(e) Section 512 of the National Housing Act is amended by striking out “or IX” and inserting in lieu thereof “IX, X, or XI”.

(f) Section 1001(c) of the National Housing Act is amended by striking out “‘mortgage’” and inserting in lieu thereof “‘mortgagee’”.

(g) Section 1 of the National Housing Act is amended by striking out “and X” wherever it appears and inserting in lieu thereof “X, and XI”.

(h) Section 102(h) of the Housing Amendments of 1955 is amended by striking out “section 213 of the National Housing Act, as amended, the Commissioner” and inserting in lieu thereof “section 213 of the National Housing Act, section 221(d)(3) of the National Housing Act, and section 101 of the Housing and Urban Development Act of 1965 (insofar as the provisions of such sections relate to cooperative housing), the Secretary of Housing and Urban Development”, and by striking out “such section” each place it appears and inserting in lieu thereof “such sections”.

Approved November 3, 1966.