PUBLIC LAWS-CH. 338 -JULY 15, 1949 42 Uats. . 140; b) By adding the following new subsection to section 2: Supp. i, 11402 . (14) The term 'veteran' shall mean a person who has served in " Veteran." the active military or naval service of the United States at any time on or after September 16, 1940, and prior to July 26, 1947, or at any time on or after April 6, 1917, and prior to November 11, 1918, and who shall have been discharged or released therefrom under condi- "Serviceman." tions other than dishonorable. The term 'serviceman' shall mean a person in the active military or naval service of the United States who has served therein on or after September 16, 1940, and prior to July 26, 1947, or at any time on or after April 6, 1917, and prior to November 11, 1918." COST LIMITS 50 Stat. 896. 42U.S. O. 1415(5). 50 Stat. 892; 52 Stat. 820. 42U.S.C. §1410 (b), (0. 50 Stat. 898. 42 U.S. 0 . 1421. Post, p. 431 . SEC. 303 . Subsection 15 (5) of the United States Housing Act of 1937, as amended, is hereby amended to read as follows: "(5) Every contract made pursuant to this Act for loans (other than preliminary loans), annual contributions, or capital grants for any low-rent housing project completed after January 1, 1948, shall provide that the cost for construction and equipment of such project (excluding land, demolition, and nondwelling facilities) shall not exceed $1,750 per room ($2,500 per room in the case of Alaska): Provided,That if the Administrator finds that in the geographical area of any project (i) it is not feasible under the aforesaid cost limitations to construct the project without sacrifice of sound standards of construction, design, and livability, and (ii) there is an acute need for such housing, he may prescribe in such contract cost limitations which may exceed by not more than $750 per room the limitations that would otherwise be applicable to such project hereunder. Every contract made pursuant to this Act for loans (other than preliminary loans), annual contribu- tions, or capital grants with respect to any low-rent housing project initiated after March 1, 1949, shall provide that such project shall be undertaken in such a manner that it will not be of elaborate or extrava- gant design or materials, and economy will be promoted both in construction and administration. In order to attain the foregoing objective, every such contract shall provide that no award of the main construction contract for such project shall be made unless the Authority, taking into account the level of construction costs prevailing in the locality where such project is to be located, shall have specifically approved the amount of such main construction contract." PRIVATE FINANCING SEC. 304. In order to stimulate increasing private financing of low- rent housing projects, the United States Housing Act of 1937, as amended, is hereby amended as follows: (a) The last proviso of subsection (b) of section 10 is repealed, and subsection (f) of said section is amended to read as follows: "(f) Payments under annual contributions contracts shall be pledged, if the Authority so requires, as security for any loans obtained by a public housing agency to assist the development or acquisition of the housing project to which the annual contributions relate."; (b) The following is added after section 21: C"PRIVATE FINANCING "SEC. 22. To facilitate the enlistment of private capital through the sale by public housing agencies of their bonds and other obliga- tions to others than the Authority, in financing low-rent housing proj- ects, and to maintain the low-rent character of housing projects- 424 [63 STAT.