PUBLIC LAWS-CH. 338-JULY 15, 1949 50 Stat. 895. 42U. .C.§1415; Supp. II, § 1415. Post, pp . 424, 427. Preliminary loans. Loans or annual contributions. Maximum Income limlits. Investigations of families admitted to project. TITLE III-LOW-RENT PUBLIC HOUSING LOCAL RESPONSIBILITIES AND DETERMINATIONS; TENANCY ONLY BY LOW-INCOME FAMILIES SEC. 301. The United States Housing Act of 1937, as amended, is hereby amended by adding the following additional subsections to section 15: "(7) In recognition that there should be local determination of the need for low-rent housing to meet needs not being adequately met by private enterprise- "(a) The Authority shall not make any contract with a public housing agency for preliminary loans (all of which shall be repaid out of any moneys which become available to such agency for the development of the projects involved) for surveys and planning in respect to any low-rent housing projects initiated after March 1, 1949, (i) unless the governing body of the locality involved has by resolution approved the application of the public hous- ing agency for such preliminary loan; and (ii) unless the public housing agency has demonstrated to the satisfaction of the Author- ity that there is a need for such low-rent housing which is not being met by private enterprise; and "(b) the Authority shall not make any contract for loans (other than preliminary loans) or for annual contributions pur- suant to this Act with respect to any low-rent housing project initiated after March 1, 1949, (i) unless the governing body of the locality involved has entered into an agreement with the public housing agency providing for the local cooperation required by the Authority pursuant to this Act; and (ii) unless the public hous- ing agency has demonstrated to the satisfaction of the Authority that a gap of at least 20 per centum has been left between the upper rental limits for admission to the proposed low-rent housing and the lowest rents at which private enterprise unaided by public subsidy is providing (through new construction and available existing structures) a substantial supply of decent, safe, and sanitary housing toward meeting the need of an adequate volume thereof. "(8) Every contract made pursuant to this Act for annual contri- butions for any low-rent housing project initiated after March 1, 1949, shall provide that- "(a) the public housing agency shall fix maximum income limits for the admission and for the continued occupancy of fam- ilies in such housing, that such maximum income limits and all revisions thereof shall be subject to the prior approval of the Authority, and that the Authority may require the public hous- ing agency to review and to revise such maximum income limits if the Authority determines that changed conditions in the local- ity make such revisions necessary in achieving the purposes of this Act; "(b) a duly authorized official of the public housing agency involved shall make periodic written statements to the Author- ity that an investigation has been made of each family admitted to the low-rent housing project involved during the period covered thereby, and that, on the basis of the report of said inves- tigation, he has found that each such family at the time of its admission (i) had a net family income not exceeding the maximum income limits theretofore fixed by the public housing agency (and approved by the Authority) for admission of families of low income to such housing; and (ii) lived in an unsafe, insanitary, 422 [63 STAT.
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