tions for mortgages insured under sec. 213, sec. 220, and title VIII and for mortgages on properties in Alaska, Guam, and Hawaii, are not changed.)

FNMA-90 percent loans

Section 703 amends section 304(a)(2) of such act to permit FNMA, under its secondary market operations, to make short-term loans on the security of insured or guaranteed mortgages if the loans do not exceed 90 percent (rather than 80 percent as previously provided) of the unpaid principal amounts of the mortgages securing the loans. FNMA-Purchase of participations

Section 704 repeals section 304 (d) of such act in order to permit FNMA, under its secondary market operations, to purchase, sell, and deal otherwise in participations in insured and guaranteed mortgages. Section 304(d) previously prohibited such transactions by FNMA.

TITLE VIII-TRAINING AND FELLOWSHIP PROGRAMS

PART 1-FEDERAL-STATE TRAINING PROGRAMS

This part establishes a new system of Federal-State training programs designed to develop the skills needed for economic and efficient community development and to provide new and improved methods of dealing with community development problems.

Findings and purpose

Section 801(a) states the finding of Congress that rapid urban expansion has caused severe problems in urban and suburban development and has created a national need for training in skills needed for economic and efficient community development and for research in methods of dealing with community development problems.

Subsection (b) declares it to be the purpose of the law to assist and encourage the States, in cooperation with colleges, universities, and urban centers, to develop programs which will provide this training to technical and professional people who are or are training to be employed by a public body having community development responsibilities, and to support State and local research in connection with all community development problems.

Matching grants to States

Section 802(a) authorizes the Housing and Home Finance Administrator to make grants to States to assist in carrying out the stated purposes of the law.

Subsection (b) requires a State, in order to receive such a grant, to secure the Administrator's approval of a State plan setting forth the proposed use of the funds and the objectives to be accomplished, indicating the method by which the required non-Federal financing will be obtained, providing fiscal control and accounting procedures, designating the State officer or agency to administer the program, and providing for appropriate reports.

Subsection (c) requires that each Federal grant be matched by at least an equal amount for non-Federal sources for the same purpose and for concurrent use.

Subsection (d) authorizes $10 million to be appropriated, without fiscal year limitation, for such grants.

State limit

Section 803 limits to 10 percent of the total authorization the amount of the funds made available under section 802(d) which may be used for making grants to any one State.

Technical assistance, studies, and publication of information

Section 804 authorizes the Administrator in carrying out the program to provide technical assistance to State and local public bodies, to undertake studies, and to publish and distribute such information. Miscellaneous

Section 805(a) defines the term "State" to include any State, the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands.

Subsection (b) authorizes necessary appropriations for administrative and other expenses.

PART 2-FELLOWSHIPS FOR CITY PLANNING AND URBAN STUDIES

This part (sec. 810) authorizes the appropriation of up to $500,000 annually for a 3-year period to the Housing and Home Finance Administrator to provide fellowships in public and private nonprofit institutions of higher learning for the graduate training of professional city planning and urban and housing technicians and specialists.

This part also establishes an Urban Studies Fellowship Advisory Board to consist of nine members appointed by the Administratorthree from public institutions of higher learning, three from private nonprofit institutions of higher education, and three from national organizations concerned with problems relating to urban, regional, and community development. The Board shall make recommendations to the Administrator with respect to persons to be selected for fellowships.

TITLE IX SAVINGS AND LOAN ASSOCIATIONS

Lending area

Section 901 (a) amends section 5(c) of the Home Owners' Loan Act of 1933 to extend the statutory lending area of a federally chartered savings and loan association to 100 miles (rather than 50 miles as previously provided) from its home office.

Subsection (b) makes a similar amendment (relating to Statechartered savings and loan associations) in section 403(b) of the National Housing Act.

Associations may make loans beyond the 50-mile previous limit only with the approval of and pursuant to regulations of the Federal Home Loan Bank Board.

Home loans; participations; exception from area restriction

Section 902 amends section 5(c) of the 1933 act to increase from $35,000 to $40,000 the maximum loan which can be made by a federally chartered savings and loan association on a single-family home. It also removes the prior limitation (of 30 percent of the association's assets) on the aggregate amount which a federally chartered savings and loan association may lend outside its basic lending area or invest in participating interests in first liens. Each

of these types of investment (loans outside the basic lending area, and investments in participating interests) will, however, continue to be subject to the limitation of 20 percent of the association's assets. Urban renewal investments

Section 903 amends section 5(c) of the 1933 act to permit a federally chartered savings and loan association to invest up to 5 percent of its assets in real property (or interests in real property) located in urban renewal areas and obligations secured by first liens on real property located in such areas (with a maximum investment in real property or interests therein of 2 percent of the association's assets). This provision replaces the prior provision authorizing investments in urban renewal trust certificates.

Loans on leaseholds

Section 904 amends section 5(c) of the 1933 act to permit a federally chartered savings and loan association to make loans secured by a leasehold if the term of the leasehold does not expire, or is renewable so as not to expire, for at least 15 years beyond the maturity of the loan.

Investments in certain State corporations

Section 905 amends section 5(c) of the 1933 act to permit a federally chartered savings and loan association to invest up to 1 percent of its assets in a corporation organized under State law in the State where the association's home office is located, if the entire capital stock of such corporation is available for purchase only by savings and loan associations chartered in that State and Federal associations having their home office therein.

Federal home loan bank advances

Section 906 amends section 10(b) of the Federal Home Loan Bank Act to permit a Federal home loan bank to accept as collateral for advances to its members nonfederally insured or guaranteed home mortgages with maturities of up to 30 years and amounts up to $40,000 (instead of 25 years and $35,000 as previously provided). Investments in Government obligations (see p. 49)

Section 907 amends section 5(c) of the 1933 act to permit a federally chartered savings and loan association to invest in general obligations of States and their political subdivisions. This section also permits investments in participations or other instruments of, or fully guaranteed by, FNMA or any agency of the United States.

Property and home improvement loans (see p. 49)

Section 908 amends section 5(c) of the 1933 act to permit a federally chartered savings and loan association to invest up to 20 percent of its assets (previously 15 percent) in FHA-insured property and home improvement loans, VA-insured and guaranteed loans, and other loans for property, alteration, repair, or improvement. The maximum amount of any such loan which is not insured or guaranteed by FHA or VA is increased from $3,500 to $5,000.

Investment of public funds (see p. 49)

Section 909 adds to title IV of the National Housing Act a new section 409, authorizing the investment of public funds of or under the control of the United States, and (subject to otherwise applicable

regulatory authority) funds of corporations organized under Federal law, in insured accounts held by savings and loan associations.

College education loans

Section 910 amends section 5(c) of the 1933 act to permit a federally chartered savings and loan association to invest up to 5 percent of its assets in loans for the payment of expenses of college or university education.

TITLE X-MISCELLANEOUS

Open-space program-Grant authorization

Section 1001 amends section 702(b) of the Housing Act of 1961 to increase by $25 million the authorization for grants by the Housing and Home Finance Administrator under the open-space land program, and to provide that any amounts appropriated for grants under such program will remain available until expended.

College housing

Section 1002 amends section 404 (b) of the Housing Act of 1950 to permit a college housing loan to be made to an eligible nonprofit corporation without requiring the educational institution to cosign the note for the college housing loan whenever State law in effect on the date of enactment of the Housing Act of 1964 prevents the educational institution from cosigning. However, the loan may not be made to the nonprofit corporation without the educational institution cosigning the note unless the educational institution approves the proposed college housing project and the nonprofit corporation. Acquisition of certain housing by Secretary of Defense

Section 1003 amends section 404 (a) of the Housing Amendments of 1955 to authorize the Secretary of Defense to acquire housing covered by mortgages insured by FHA under section 608 of the National Housing Act (including adjacent commercial property) which was completed before July 1, 1952, and was considered by the Secretary prior to construction as necessary military housing, in the same way that he is authorized to acquire Wherry Act housing and section 207 rental housing.

Real estate loans by national banks (see p. 5)

Section 1004 amends section 24 of the Federal Reserve Act to liberalize limits on home loans made by national banks by permitting the loans to be in amounts up to 80 percent (previously 75 percent) of the appraised value of the real estate offered as security, and to have maturities of up to 25 years (previously 20 years).

Forest Hills project in Paducah, Ky.

Section 1005 directs the Federal Housing Commissioner to sell the Forest Hills (Wherry Act) housing project in Paducah, Ky., for use as a public facility (including use by the Paducah Junior College), to the Paducah-McCracken County Development Council for a total price of $1 million.

Payment in lieu of taxes by Hawaii Housing Authority

Section 1006 directs the Public Housing Commissioner to approve. the payment of lieu of taxes to be made by the Hawaii Housing Authority to the city and county of Honolulu for the fiscal year ending June 30, 1959.

Transfer of land for urban renewal purposes by Philadelphia Housing Authority

Section 1007 directs the Housing and Home Finance Administrator and the Public Housing Commissioner to consent to the transfer by the Philadelphia Housing Authority to the Philadelphia Redevelopment Authority, for use in the Whitman urban renewal project (Pennsylvania R-35), the property which was originally acquired by the housing authority for low-rent housing project (Pennsylvania 2-51). The transfer is to be on condition that the redevelopment authority pay a sum sufficient to permit the discharge of all of the housing authority's obligations in connection with the low-rent housing project. Eligibility of certain local grants-in-aid

Section 1008 (a) provides (by waiving the 3-year limit on eligibility) that local expenditures made in connection with the construction of the Fox Point hurricane dam in Providence, R.I., shall be counted (to the extent otherwise eligible) as part of the local noncash grant-inaid for the railroad relocation urban renewal project (Rhode Island R-8) under title I of the Housing Act of 1949.

Subsection (b) provides (by waiving the applicable time limit) that expenditures made by the Methodist Hospital of Central Illinois and St. Francis Hospital, of Peoria, Ill., for the purchase of two parcels of land in 1956, for a price of not more than $82,980, shall if otherwise eligible be counted as local grants-in-aid to the Peoria Medical Center urban renewal project (Illinois R-61).

HOUSING FOR PARAPLEGIC VETERANS

[S. 484; H.R. 248]

[Public Law 88-401, approved August 4, 1964]

To amend section 801 of title 38, United States Code, to provide assistance in acquiring specially adapted housing for certain blind veterans who have suffered the loss or loss of use of a lower extremity

HISTORY OF LEGISLATION

S. 484 was introduced by Senator Sparkman, for himself and Senator Yarborough, on January 24, 1963, and referred to the Subcommittee on Housing on February 28, 1963. Subsequently, the bill was the subject of hearings on November 12, 1963. No further action was taken on the measure during the 1st session of the 88th Congress.

Concurrently, a bill, H.R. 248, containing the same provisions as S. 484, was introduced in the House of Representatives by Representative Teague on January 9, 1963, and referred to the Veterans' Affairs Committee of the House of Representatives. H.R. 248 was reported by the Veterans' Affairs Committee (H. Rept. 69) on March 6, 1963, and subsequently passed the House of Representatives on April 1, 1963.

The measure was then sent to the Senate and on April 2, 1963, was referred to the Senate Committee on Labor and Public Welfare. Subsequently, on July 9, 1964, H.R. 248 was rereferred to the Senate Committee on Banking and Currency. H.R. 248 was reported (S. Rept. 1235) to the Senate without amendment on July 23, 1964.