
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC1586]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
        CHAPTER 9--HOUSING OF PERSONS ENGAGED IN NATIONAL DEFENSE
 
          SUBCHAPTER VII--DISPOSAL OF WAR AND VETERANS' HOUSING
 
Sec. 1586. Sale of specific housing projects


(a) Conditions precedent

    The Secretary of Housing and Urban Development 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 conveyance is 
    requested by the governing body of the municipality or county and 
    (ii) the public housing agency has demonstrated to the satisfaction 
    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 public housing agency which is not being met by 
    private enterprise;
        (2) the Secretary of Housing and Urban Development determines 
    that the project requested 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 cooperation 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 Secretary of Housing and Urban Development (in accordance 
    with subsection (c) of this section) or for the administration of 
    the project:



                                                Project
                     State                       number                Local pu
blic housing agency

Alabama.......................................     1041  Housing Authority of D
istrict of Birmingham.
                                                   1061  Housing Authority of G
reater Gadsden.
                                                   1062  Housing Authority of G
reater Gadsden.
                                                   1031  Housing Board of Mobil
e.
                                                   1033  Housing Board of Mobil
e.
                                                   1034  Housing Board of Mobil
e.
                                                   1035  Housing Board of Mobil
e.
                                                   1036  Housing Board of Mobil
e.
                                                   1101  Housing Board of Mobil
e.
                                                   1102  Housing Board of Mobil
e.
                                                   1072  Housing Authority of S
ylacauga.
                                                   1076  Housing Authority of S
ylacauga.
                                                   1073  Housing Authority of C
ity of Talladega.
Arkansas......................................     3023  Housing Authority of C
ity of Conway.
California....................................     4031  Housing Authority of C
ity of Fresno.
                                                   4161  Housing Authority of C
ounty of Kern.
                                                   4141  Housing Authority of C
ounty of Kern.
                                                   4103  Housing Authority of C
ity of Los Angeles.
                                                   4104  Housing Authority of C
ity of Los Angeles.
                                                   4108  Housing Authority of C
ity of Los Angeles.
                                                   4121  Housing Authority of C
ity of Paso Robles.
                                                   4171  Housing Authority of C
ity of Richmond.
                                                   4174  Housing Authority of C
ity of Richmond.
Connecticut...................................     6091  Housing Authority of C
ity of Bristol.
                                                   6024  Housing Authority of T
own of East Hartford.
                                                   6031  Housing Authority of C
ity of New Britain.
                                                   6032  Housing Authority of C
ity of New Britain.
                                                   6101  Housing Authority of C
ity of New Haven.
                                                   6041  Housing Authority of C
ity of Waterbury.
                                                   6213  Housing Authority of C
ity of Waterbury.
District of Columbia..........................    49012  National Capital Housi
ng Authority.
                                                  49017  National Capital Housi
ng Authority.
                                                  49044  National Capital Housi
ng Authority.
Florida.......................................     8052  Housing Authority of C
ity of Jacksonville.
                                                   8121  Housing Authority of C
ity of Lakeland.
                                                   8062  Housing Authority of C
ity of Miami.
                                                   8011  Housing Authority of C
ity of Orlando.
                                                   8082  Housing Authority of C
ity of Pensacola.
                                                   8084  Housing Authority of C
ity of Pensacola.
                                                   8085  Housing Authority of C
ity of Pensacola.
                                                   8131  Housing Authority of C
ity of Sebring.
                                                   8041  Housing Authority of C
ity of West Palm Beach.
Georgia.......................................     9071  Housing Authority of C
ity of Albany.
                                                   9061  Housing Authority of M
acon.
                                                   9063  Housing Authority of M
acon.
                                                   9041  Housing Authority of S
avannah.
                                                   9042  Housing Authority of S
avannah.
                                                   9043  Housing Authority of S
avannah.
Illinois......................................    11081  Madison County Housing
 Authority.
                                                  11082  Madison County Housing
 Authority.
                                                  11111  Winnebago County Housi
ng Authority.
                                                  11112  Winnebago County Housi
ng Authority.
Indiana.......................................    12071  Housing Authority of C
ity of Fort Wayne.
                                                  12021  Housing Authority of C
ity of South Bend.
Louisiana.....................................    16051  Housing Authority of P
arish of East Baton Rouge.
Maryland......................................    18095  Housing Authority of B
altimore City.
                                                  18096  Housing Authority of B
altimore City.
                                                  18097  Housing Authority of B
altimore City.
                                                  18098  Housing Authority of B
altimore City.
Massachusetts.................................    19051  Boston Housing Authori
ty.
                                                  19021  Chicopee Housing Autho
rity.
                                                  19022  Chicopee Housing Autho
rity.
                                                  19061  Pittsfield Housing Aut
hority.
                                                  19023  Springfield Housing Au
thority.
Michigan......................................    20042  Housing Commission of 
Detroit.
Nevada........................................    26021  Housing Authority of C
ity of Las Vegas.
New Hampshire.................................    27021  Housing Authority of C
ity of Manchester.
New Jersey....................................    28044  Housing Authority of C
ity of Camden.
                                                  28021  Housing Authority of C
ity of Long Branch.
                                                  28072  Housing Authority of C
ity of Newark.
                                                  28111  Housing Authority of T
own of Phillipsburg.
New York......................................    30031  Buffalo Municipal Hous
ing Authority.
                                                  30032  Buffalo Municipal Hous
ing Authority.
                                                  30042  Elmira Housing Authori
ty.
                                                  30033  Lackawanna Municipal H
ousing Authority.
                                                  30039  Lackawanna Municipal H
ousing Authority.
                                                  30034  Niagara Falls Housing 
Authority.
                                                  30071  Niagara Falls Housing 
Authority.
                                                  30082  Massena Housing Author
ity.
North Carolina................................    31023  Housing Authority of C
ity of Wilmington.
                                                  31024  Housing Authority of C
ity of Wilmington.
Ohio..........................................    33031  Canton Metropolitan Ho
using Authority.
                                                  33033  Canton Metropolitan Ho
using Authority.
                                                  33021  Cincinnati Metropolita
n Housing Authority.
                                                  33071  Cleveland Metropolitan
 Housing Authority.
                                                  33074  Cleveland Metropolitan
 Housing Authority.
                                                  33075  Cleveland Metropolitan
 Housing Authority.
                                                  33112  Lorain Metropolitan Ho
using Authority.
                                                  33261  Lorain Metropolitan Ho
using Authority.
                                                  33262  Lorain Metropolitan Ho
using Authority.
                                                  33041  Warren Metropolitan Ho
using Authority.
                                                  33043  Warren Metropolitan Ho
using Authority.
Oregon........................................    35021  Housing Authority of P
ortland.
Pennsylvania..................................    36051  Housing Authority of C
ounty of Beaver.
                                                  36058  Housing Authority of C
ounty of Beaver.
                                                  36041  Housing Authority of B
ethlehem.
                                                  36042  Housing Authority of B
ethlehem.
                                                  36044  Housing Authority of B
ethlehem.
                                                  36151  Allegheny County Housi
ng Authority.
                                                  36152  Allegheny County Housi
ng Authority.
                                                  36061  Housing Authority of C
ounty of Lawrence.
                                                  36021  Housing Authority of C
ity of Erie.
                                                  36031  Housing Authority of C
ounty of Lycoming.
                                                  36011  Housing Authority of P
hiladelphia.
                                                  36012  Housing Authority of P
hiladelphia.
                                                  36014  Housing Authority of P
hiladelphia.
                                                  36015  Housing Authority of P
hiladelphia.
                                                  36016  Housing Authority of P
hiladelphia.
                                                  36101  Housing Authority of C
ity of Pittsburgh.
                                                  36212  Allegheny County Housi
ng Authority.
                                                  36295  Housing Authority of C
ity of York.
Rhode Island..................................    37013  Housing Authority of C
ity of Newport.
South Carolina................................    38023  Housing Authority of C
ity of Charleston.
                                                  38061  Housing Authority of C
ity of Charleston.
                                                  38041  Housing Authority of C
ity of Spartanburg.
                                                  38042  Housing Authority of C
ity of Spartanburg.
Tennessee.....................................    40022  Jackson Housing Author
ity.
                                                  40023  Milan Housing Authorit
y.
                                                  40011  Nashville Housing Auth
ority.
                                                  40025  Trenton Housing Author
ity.
Texas.........................................    41064  Housing Authority of C
ity of Corpus Christi.
                                                  41065  Housing Authority of C
ity of Corpus Christi.
                                                  41133  Housing Authority of C
ity of Freeport.
                                                  41031  Housing Authority of C
ity of Houston.
                                                  41131  Housing Authority of C
ity of Lake Jackson.
                                                  41101  Housing Authority of C
ity of Mineral Wells.
                                                  41103  Housing Authority of C
ity of Mineral Wells.
                                                  41072  Housing Authority of C
ity of Orange.
                                                  41032  Housing Authority of C
ity of Pasadena.
                                                  41141  Housing Authority of C
ity of Texarkana.
                                                  41121  Housing Authority of C
ity of Wichita Falls.
Virginia......................................    44131  Alexandria Redevelopme
nt and Housing Authority.
                                                  44132  Alexandria Redevelopme
nt and Housing Authority.
                                                  44133  Alexandria Redevelopme
nt and Housing Authority.
                                                  44135  Alexandria Redevelopme
nt and Housing Authority.
                                                  44136  Alexandria Redevelopme
nt and Housing Authority.
                                                  44065  Newport News Redevelop
ment and Housing Authority.
                                                  44074  Norfolk Redevelopment 
and Housing Authority.
                                                  44086  Portsmouth Redevelopme
nt and Housing Authority.
Washington....................................    45043  Housing Authority of C
ity of Bremerton.
                                                 45277N  Housing Authority of C
ounty of Clallam.
                                                 45315N  Housing Authority of C
ounty of Clallam.
                                                  45133  Housing Authority of C
ounty of King.
                                                  45052  Housing Authority of C
ity of Seattle.
                                                  45053  Housing Authority of C
ity of Seattle.
                                                  45054  Housing Authority of C
ity of Seattle.
                                                  45055  Housing Authority of C
ity of Seattle.
                                                  45056  Housing Authority of C
ity of Seattle.
                                                  45122  Housing Authority of C
ity of Vancouver.



    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 permanent war housing project 
to a local public housing 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 
municipality) 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 specifically 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 
section, 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 property 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 administered 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 period the public housing agency and the Secretary 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 approval 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 Development, 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 
    residing 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 designated by the Secretary of Defense or his 
    designee shall not be subject to such removal until eighteen months 
    after the date of conveyance;
        (3) annually during the term of such agreement, the public 
    housing agency shall pay to the Secretary of Housing and Urban 
    Development all income from the project remaining after deducting 
    the amounts necessary (as determined pursuant to regulations of the 
    Secretary 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 authorized 
    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 approval 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 Housing 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 consolidated 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 personal property taxes levied or imposed 
    by the State, city, county, or other political subdivisions;
        (5) for the tax year in which the conveyance is made and the 
    next succeeding tax year annual payments in lieu of taxes may be 
    made to the State, city, county, or other political subdivisions in 
    amounts not in excess of the real property taxes which would be paid 
    to such State, city, county, or other political subdivisions if the 
    project were not exempt from taxation; and thereafter, during the 
    term of such agreement, payments in lieu of taxes with respect 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 preferences 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 Secretary of Defense or his designee prescribes to 
    the public housing agency; and
        (7) upon the occurrence of a substantial default in respect to 
    the requirements and conditions 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 
    improve and administer such project as low-rent housing, and 
    otherwise deal with such housing or parts thereof, subject, however, 
    to the limitations 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 exists) upon 
    such terms as shall be prescribed in such agreement and as soon as 
    practicable after the Secretary of Housing and Urban Development 
    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 operated in accordance with the terms of such 
    agreement. Any prior conveyances and reconveyances, deliveries and 
    redeliveries of possession shall not exhaust the right to require a 
    conveyance or delivery of possession of the project to the Secretary 
    of Housing and Urban Development pursuant to this paragraph 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 miscellaneous receipts.

(Oct. 14, 1940, ch. 862, title VI, Sec. 606, as added June 28, 1948, ch. 
688, Sec. 7, as added Apr. 20, 1950, ch. 94, title II, Sec. 201, 64 
Stat. 59; amended by Ex. Ord. No. 10284, Secs. 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, Sec. 807, Sept. 23, 1959, 73 Stat. 687; Pub. L. 89-174, Sec. 5(a), 
Sept. 9, 1965, 79 Stat. 669; Pub. L. 93-383, title II, Sec. 207, Aug. 
22, 1974, 88 Stat. 669.)

                       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, Sec. 201(a), Aug. 22, 
1974, 88 Stat. 653, which is classified generally to chapter 8 
(Sec. 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 Tables.
    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), and (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, Sec. 207(a), struck out 
provisions relating to payment of capital grants or annual contributions 
to low-rent housing projects.
    Subsec. (c)(1). Pub. L. 93-383, Sec. 207(b), inserted provision 
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, Sec. 807(1), provided that if any 
such project is consolidated under a single annual contributions 
contract with any low-rent project being assisted with annual 
contributions under United States Housing Act of 1937, payment of any 
annual contribution on account of any project so assisted shall not be 
deemed to be a capital grant or annual contribution with respect to any 
project conveyed hereunder.
    Subsec. (c)(3). Pub. L. 86-372, Sec. 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 
commingling of income from such project with funds of project or 
projects with which it is consolidated.

                          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 Order No. 10284

    Ex. Ord. No. 10284, Sept. 4, 1951, extended time for request 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 agreements 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 request for conveyance of housing 
projects from Dec. 31, 1952, to June 30, 1953.


                            Cross References

    Extension of dates for disposal and other actions relating to 
housing under this chapter, see section 1589a of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1585, 1587 of this title.
