894 Disposal of Federal projects . Authority to sell its Fede ral proj ects, et c . Sale to public hous- ing agency only ; con- sideration . Eligibility for loans . Ante, p . 891 . Le ases to public housing agency . 47 Stat . 412. 40U.S.C.°mob. Rentals . General powers o f the Aut hor ity . 75 TH CONGRESS, 1ST SESSION-CH . 8 96-SE PTEMB ER 1, 1937 pol itical s ubdivisi on thereo f, or ot herwise, a contr ibution f or such pro ject (in the for m of cash , land, or the v alue, ca pitalized at the going Federal rate of interest, of community facilities or services for which a charge is usuall y Inade, or tax remissio ns or tax exemp- tions) in an amount not less than 20 per centum of its development or acquisit ion cost . DISPOSAL OF FEDERAL PROJECTS SEC . 12 . (a) It is hereby declared to be the purpose of Congress to provide for the orderly disposal of any low-rent-housing projects hereafter transferred to or acquired by the Authority through the sale or leasing of such projects as hereinafter provided ; and, in order to continue the relief of Nation-wide unemployment and in order to avoid waste pending such sale or lease, to provide for the completion and temporary administration of such projects by the Authority . (b) As soon as practicable the Authority shall sell its Federal projects or divest itself of their management through leases . (c) The Authority may sell a Federal project only to a public housing agency . Any such sale shall be for a consideration, in what- ever form may be satisfactory to the Authority, equal at least to the amount which the Authority determines to be the fair value of the project for a housing purposes of a low-rent character (making such djustment as the Authority deems advisable for any annual con- tributions which may hereafter be given here un r deinaidofthe project), less such allowance far depreciation as the Authority shall fix . Such project shall then become eligible for loans pursuant to sect ion 9, a nd either annual contribu tions pu rsuant t o section 10 or a capital grant pursuant to section 11 . Any obligation of the pur- chaser accepted by the Authority as part of the consideration for the sale of such project shall be deemed a loan pursuant to section 9 . (d) The A utho rity may l ease any Feder al l ow-re nt-ho usin g pro j- ect, in whole or in part, to a public housing agency . The lessee of any project, pursuant to this paragraph, shall assume and pay all man agem ent, opera tion , and main tena nce c osts, tog ether with pay - ments, if any, in lieu of taxes, and shall pay to the Authority such ann ual sums as th e Au thori ty sh all deter mine are consi stent wit h maintaining the low-rent character of such project . The provisions of section 321 of the Act of June 30, 1932 (U . S . C ., 1934 edition, title 40, sec . 303 b), shall not apply to any lease pursuant to this Act . (e) In the admi nistrati on of any Federal low-ren t-housin g projec t pending sale or lease, the Authority shall fix the rentals at the amounts necessary to pay all management, operation, and mainte- nance costs, together with payments, if any, in lieu of taxes, plus such additional amounts as the Authority shall determine are con- sistent with maintaining the low-rent character of such project . GENERAL POWERS OF THE AUTHORITY SEc . 13. (a) The Authority may foreclose on any property or com- mence any action to protect or enforce any right conferred upon it by any law, contract, or other agreement . The Authority may bid for and purchase at any foreclosure by any party or at any other sale, or other wise acq uire, an d may ad minister , any low -rent-ho using pro ject which it previ ously own ed or in c onne ction with whi ch it has m ade a loa n pursua nt to se ction 9, annual contribut ions pur suant to section 10, or cap ital grants pursuant to section 11 .
