Seo. 1749(a) 1749c (b) (1) *1749c (b) (2) 1749c (b) (3) 1749c (b) (4) *1749c (b) (5) 1749c (a) (1) 1749c(a) (2) COLLEGE HOUSING LOANS (Public Law 475 (1950); Public Law 93 (1953); Public Law 560 (1954); Public Law 345 (1955); Public Law 1020 (1956); Public Law 85-104; Public Law 86-372; Public Law 86-788; Public Law 87-70 I. Substance of the existing law, keyed to the United NOTE.-Section references are to Title 12 of the 1958 Code, except where an asterisk precedes the citation. Sections marked by an asterisk are found in Title 12 of Supplement III to the 1958 Code. A. Purpose "To assist educational institutions beyond the high school level in providing housing and certain other educational facilities for students and faculties [by authorizing the Housing and Home Finance Administrator], to make loans to such institutions for the construction of such facilities ***" B. Definitions descriptive of the scope of the provisions 1. "Educational institutions." a. Any public or nonprofit private institution offering at least a two year program acceptable for full credit toward a baccalaureate degree. b. Any public or nonprofit private hospital offering a properly approved school of nursing beyond the level of high school, or any such hospital offering a properly approved internship program. c. Any nonprofit corporation established for the sole purpose of providing housing or "other educational facilities" for the students and/or faculty of an eligible college or university. d. Any instrumentality of a State established for the purpose of providing or financing housing or "other educational facilities" for students and/or faculty of an eligible college or university. No such institution, however, may be required to obtain a loan through such an instrumentality. e. Any nonprofit student housing cooperative corporation established for the purpose of providing housing for students and/or faculty of an eligible college or university. 2. "Housing." a. New structures suitable for dwelling use, including single room dormitories and apartments. b. Dwelling facilities provided by rehabilitation, alteration, conversion, or improvement of existing structures which are otherwise inadequate for the proposed dwelling use. 3. "Development cost." Seo. a. Costs of the construction of the housing or "other 1749c (c) educational facilities." b. Cost of the land on which the facilities are to be 1749e(c) located, including site improvements necessary to permit its proposed use. 4. "Construction." Erection of new structures, or rehabilitation, alteration, conversion, or improvement of existing structures. 5. "Other educational facilities." a. New structures suitable for use as cafeterias or 1749c (h) (1) dining halls, student centers or student unions, infir maries or other inpatient or outpatient health facilities, and "other essential service facilities." b. Structures suitable for the above described uses 1749c (h) (2) that will be provided by rehabilitation, alteration, conversion, or improvements to otherwise inadequate existing structures. 6. "Faculty." The word includes both the faculty 1749c (d) members and their families. C. Method of aid Loans are to be made to educational institutions for up 1749 (c) to 50 years, and at a low rate of interest. The rate of interest will be determined by the Administrator, but it is not to exceed the higher of either (1) 234 percent per year, or (2) the total of one-quarter of 1 percent per year added to the rate of interest that the Administrator will pay on the funds he has obtained from the Secretary of the Treasury for the financing of the program. (See Administration of the loans and the loan fund, below.) D. Amount and apportionment of the loans 1. Total authorization. The Administrator was 1749 (d) authorized to obtain funds for loans up to $1,675 million in 1961, this amount to be increased by $300 million each year from 1961 to 1964, thus allowing for a total authorization of $2,875 million by July 1964. 2. Limitations on loans for certain facilities. a. Of the total authorization, only $175 million was authorized in 1961 for loans for "other educational facilities"; but this limit is to be increased annually until 1964 when the total authorization will amount to $295 million per year. b. Of the total authorization, only $100 million was authorized in 1961 for loans to eligible hospitals; but this is to be increased annually until 1964 when the total authorization will amount to $190 million. *1749 (d) 3. Limits on apportionment to States. No more than 1749b 1212 percent of the authorized funds is to be available for loans within any one State. Sec. 1749 (c) 1749c(e) 1749(a) 1749 (b) *1749d *1749 (g) *1749c (b) (5) *1749c (b) (3) (B) 1749 (b) (3) (A) *1749a (f) 4. Limits on amount of loans to colleges. No loan may be in excess of the "total development cost" of the proposed facility, as determined by the Administrator. 5. Territories and possessions of the United States, and the District of Columbia. These are included in the definition of "State" and thus educational facilities within them are eligible to participate. E. Requirements 1. Loans will be made to educational institutions only when it is shown that loans from other sources are not available to the institution on terms equally as favorable as those contained in the provisions of this law. 2. No loan was allowed where construction was begun before August 1950, or where construction is completed before filing an application for a loan; however, where only the contracting was prior to August 1950 there was no loan prohibition. 3. The necessary expenses of inspections, and of providing representatives at the site of the projects are to be borne by the educational institution. 4. Special conditions are prescribed for two types of educational institutions. a. Nonprofit student housing cooperative corporations. (1) A loan to such corporation must be co-signed by the college or university that it supports. (2) In the event of dissolution of such corporation, title to the housing constructed under the loan must vest in the college or university that it has supported. b. Nonprofit corporations established for the sole purpose of providing housing or certain other educational facilities for college faculty and students. (1) A loan to such a corporation must be co-signed by the college or university that it supports. (2) In the event of the dissolution of such corporation, title to any property purchased or built under the Federal loan must pass to the college or university that it has supported. (3) Such corporations must provide facilities for students and faculty without regard to their membership or affiliation with any social, fraternal, or honorary society. 5. Laborers and mechanics employed by contractors and subcontractors on projects financed under the Federal loan, and begun after September 23, 1959, must be paid according to prevailing wage scales as determined by the Secretary of Labor under the provisions of the Davis-Bacon Act [46 Stat. 1494 (1939)]; and must be paid at a rate one and one-half times the regular rate for employment in excess of forty hours per week. Voluntary services whose benefit accrues to the institution may be waived from the requirement by the Administrator. 6. Conditions to be established by determination of the Sec. Administrator. a. The construction on the project is to be in an 1749 (a) (2) economical manner, and not of elaborate or extravagant design or materials, as determined by the Administrator. b. Loans are to be secured in such manner, and re- 1749 (c) paid within such period not over fifty years as is determined by the Administrator. c. The Administrator may prescribe such rules and 1749 (c) regulations as are necessary to carry out the purposes of the program. d. The Administrator may include in any contract, 1749 (c) (9) such covenants, conditions, or provisions as he deems necessary to assure that the purposes of the law will be achieved. F. Administration of the loans and the loan fund 1. The funds for the loans are to be obtained by the Administrator by the issuance of notes and obligations, for the purchase of the Secretary of the Treasury, who may at any time sell any of these notes or obligations. All redemptions, purchases, and sales of the notes and obligations by the Secretary of the Treasury are to be treated as public debt transactions of the United States. 2. The maturity, terms, and denominations of the notes and obligations are set by the Administrator, with the approval of the Secretary of the Treasury. The rate of interest that they shall bear is determined by the Secretary of the Treasury, but it cannot be any more than the higher of either (1) two and one-half percent per year, or (2) the average annual interest rate on all interest bearing obligations of the United States then forming a part of the public debt. The amount of the latter rate is to be computed at the end of the year preceding the issuance of the notes and obligations by the Administrator, and will be adjusted to the nearest oneeighth of one percent. 3. Appropriations are authorized for the amount needed by the Administrator (in excess of the principal and interest that he has received from the educational institutions on their loans) for payment on the notes and obligations that he has issued. 4. The Administrator is required to submit an annual budget program, and to maintain an integral set of accounts which are to be audited annually by the Government Accounting Office. 5. In granting the loans the Administrator may consult with, and obtain the recommendations of the Office of Education of the Department of Health, Education, and Welfare. 6. Miscellaneous. Several other powers and duties are given to the Administrator in the performance of his role; for example, obtaining insurance against property 1749 (d), 1749 (e) 1749 (e) 1749 (f) 1749a (a) 1749a (c) (2) FEDERAL ASSISTANCE FOR EDUCATIONAL PURPOSES loss, foreclosure on properties for which loans have been granted and payment is not received, tax agreements with States, establishing of a checking account with the Secretary of the Treasury, and a limited exemption from contract advertisement requirements. See section 1749a. For additional activities of the Secretary of the Treasury, see section 1749 (e). II. Legislative background: Selected major provisions by statute, and citations to the sections of the United States Code affected by each Housing Act of 1950, title IV: 64 Stat. 77 (1950), 12 U.S.C. secs. 1749, 1749a-1749c (1958). 1953 Amendment: 67 Stat. 128 (1953), 12 U.S.C. sec. 1749 (a) (1958). 1954 Amendment: 68 Stat. 646 (1954), 12 U.S.C. sec. 1749 (a) (1958). College Housing Amendments of 1955: 69 Stat. 644 (1955), 12 U.S.C. secs. 1749 (a)-1749 (d), 1749c (b), (1958). 1956 Amendment: 70 Stat. 1113 (1956), 12 U.S.C. sec. 1749 (d) (1958). 1957 Amendment: 71 Stat. 303 (1957), 12 U.S.C. secs. 1749 (d), 1749c (b) (1958). 1959 Amendment: 73 Stat. 681 (1959), 12 U.S.C. secs. 1749 (d), 1949 (g), 1749a (e), 1749a (f), 1749c (b) (Supp. III, 1962). 1960 Amendment: 74 Stat. 1028 (1960), 12 U.S.C. sec. 1749 (d) (Supp. III, 1962). 1961 Amendment: 75 Stat. 172 (1961), 12 U.S.C. secs. 1749 (d), 1749b, 1749c (b), 1749d (Supp. III, 1962). NOTE. References in the original Act to the "Federal Security Administrator" were changed to "Secretary of Health, Educa tion and Welfare" by effect of the 1953 Reorganization Plan No. I, 67 Stat. 631 (1953). COOPERATIVE RESEARCH PROGRAM OF THE Public Law 531 (1954) I. Substance of the existing law, keyed to the United A. Purpose To enable the Office of Education of the Department of Health, Education, and Welfare to more effectively accomplish the purpose for which it was originally established [viz., the collection, analysis, and diffusion of information concerning the condition and progress of |