63 STAT.] 81ST CONG. , 1ST SESS.-CH. 338 -JULY 15, 1949 5 per centum of the shelter rents charged in such projects for each of such project fiscal years, or (ii) the amounts specified in the cooperation agreements in effect July 1, 1947, between the public housing agencies and the political subdivisions in which the projects are located, or in the ordinances or resolutions of such political sub- divisions in effect on such date. In respect to such low-rent housing projects initiated prior to March 1, 1949, the contracts for annual contributions may be amended as to project fiscal years in respect to which annual contribution dates occur on or after July 1, 1949, so as to require exemption from real and personal property taxes in lieu of any other requirements as to local contributions and to permit payments in lieu of taxes on the terms prescribed in the first sentence of this subsection; in the event that the contracts for annual contribu- tions are not so amended, payments in lieu of taxes in respect to such project fiscal years shall be limited to the amount specified in the cooperation agreements or ordinances or resolutions in effect July 1, 1947." SPECIAL PROVISIONS FOR LARGE FAMILIES OF LOW INCOME SEC. 306 . In order to enable low-rent housing to better serve the needs of large families of low income, the United States Housing Act of 1937, as amended, is hereby amended by deleting the second sentence of subsection 2 (1) and substituting therefor the following: "The dwellings in low-rent housing as defined in this Act shall be available solely for families whose net annual income at the time of admission, less an exemption of $100 for each minor member of the family other than the head of the family and his spouse, does not exceed five times the annual rental (including the value or cost to them of water, electricity, gas, other heating and cooking fuels, and other utilities) of the dwellings to be furnished such families. For the sole purpose of determining eligibility for continued occupancy, a public housing agency may allow, from the net income of any family, an exemption for each minor member of the family (other than the head of the family and his spouse) of either (a) $100, or (b) all or any part of the annual income of such minor. For the purposes of this subsection, a minor shall mean a person less than 21 years of age." TECHNICAL AMENDMENTS SEC. 307. The United States Housing Act of 1937, as amended, is hereby amended as follows: (a) By deleting from section 1 the words "rural or urban communi- ties" and by substituting therefor the words "urban and rural nonfarm areas"; (b) (1) By adding at the end of subsection 2 (11) the following new sentence: "The Authority shall enter into contracts for financial assistance with a State or State agency where such State or State agency makes application for such assistance for an eligible project which, under the applicable laws of the State, is to be developed and administered by such State or State agency."; and (2) By adding the following new subsection to section 2: "(15) The term 'initiated' when used in reference to the date on which a project was initiated refers to the date of the first contract for financial assistance in respect to such project entered into by the Authority and the public housing agency."; (c) By adding to section 6 the following new subsection: (e) With respect to all projects under title II of Public Law 671, Seventy-sixth Congress, approved June 28, 1940, references therein to the United States Housing Act of 1937, as amended, shall 429 50 Stat. 888. 42U. S.C. 1402 (1). 50 Stat. 888 . 42 U. S. C.§ 1401. 50 Stat. 889. 42 U. S. C. §1402 (11). 50 Stat. 888 . 42U.S.C. §1402; Supp. II, § 1402. Ante, p. 424 . "Initiated. " 50 Stat. 80. 42U.S.C.I1406. 54 Stat. 681; 60 Stat. 888. 42 U.S .. O.§ 1601- 1506, 1401 -1431; Supp. , §1402d q.
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