Delaware General Assembly

CHAPTER 293

AN ACT ESTABLISHING AND CONCERNING A DEPARTMENT OF HOUSING, CONFERRING UPON IT CERTAIN DUTIES AND POWERS IN THE FIELD OF HOUSING, ALSO ESTABLISHING A STATE BUREAU OF HOUSING WITHIN THE DEPARTMENT OF HOUSING, CONFERRING UPON IT CERTAIN DUTIES IN THE FIELD OF HOUSING, ALSO ESTABLISHING A STATE HOUSING AUTHORITY WITHIN THE DEPARTMENT OF HOUSING, CONFERRING UPON IT CERTAIN DUTIES AND POWERS IN THE FIELD OF HOUSING, PROVIDING FOR STATE FINANCIAL ASSISTANCE IN THE FIELD OF HOUSING, ESTABLISHING A HOUSING DEVELOPMENT FUND AND MAKING A SUPPLEMENTARY APPROPRIATION THEREFOR.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Chapter 41 of Title 31, Delaware Code, is hereby repealed in its entirety.

Section 2. The word "Board" wherever it appears in Chapter 43 and 45 of Title 31, Delaware Code, is hereby stricken and the word "Bureau" is substituted therefor.

Section 3. Sections 4314, 4315 and 4316 of Chapter 43, Title 31, Delaware Code, are hereby repealed in their entirety and in lieu thereof a new Section 4314 is hereby added to read as follows:

§ 4314. Supervision of projects by the department

Whenever any project of any agency including public or private organizations or corporations is financed in whole or in part by the State of Delaware pursuant to the provisions of Chapter 40, Title 31, Delaware Code, the Secretary may:

(1) Order any agency undertaking or operating a project to make, at its expense, such repairs and improvements as will preserve or promote the health and safety of the occupants of buildings and structures owned or operated by such agency.

(2) Order all such agencies to do such acts as may be necessary to comply with the provisions of the law, the rules and regulations adopted by the Secretary or by the terms of any project approved by the Secretary, or to refrain from doing any acts in violation thereof.

(3) Examine all such agencies and keep informed as to their general condition, their capitalization and the manner in which their property is constructed, leased, operated or managed.

(4) By his duly authorized agents, enter in or upon and inspect the property, equipment, buildings, plants, offices, apparatus and devices of any such agency, examine all books, contracts, records, documents and papers of any such agency and by subpoena duces tecum issued by the Bureau, compel the production thereof.

(5) In his discretion prescribe uniform methods and forms of keeping accounts, records and books to be observed by such agencies and to prescribe or order accounts in which particular outlays and receipts shall be entered, charged or credited.

(6) Require every such agency to file with the Bureau an annual report setting forth such information as he may require verified by the oath of a duly authorized representative of the agency. Such report shall be in the form, cover the period and be filed at the time prescribed by the Secretary. The Secretary may further require answers to questions upon which he or the Bureau may desire information and may also require such agency to file periodic reports in the form covering the period at the time prescribed by the Secretary.

(7) From time to time make, amend and repeal rules and regulations for carrying into effect the provisions of this Chapter.

Section 4, Part III, Title 31, Delaware Code, entitled "Housing and Slum Clearance" is amended by adding thereto a new Chapter to read:

CHAPTER 40. DEPARTMENT OF HOUSING

SUBCHAPTER 1. DEFINITIONS; PURPOSE

AND CONSTRUCTION

§ 4001. Definitions

As used in this Chapter, unless a different meaning appears from the context--

"Area" shall mean the State of Delaware.

"Assistant Secretary" means the Assistant Secretary of Housing.

"Authority" means a public body corporate or politic, organized in accordance with the provisions of chapter 43 or 45 for a purpose, with the powers and subject to the restrictions set forth in those Chapters including a community exercising the powers and duties of a Slum Clearance and Redevelopment Authority; provided, however, that "Authority" shall not mean the Delaware State Housing Authority.

"Bonds" mean any bonds (including refunding bonds), notes, interim certificates, debentures, or other obligations issued by the Delaware State Housing Authority pursuant to this chapter.

"Bureau" means the State Bureau of Housing.

"Community" means any municipality or county in this State.

"Community facilities" includes lands, buildings and equipment for recreation or social assembly, for educational, health or welfare activities and other necessary utilities primarily for use and benefit of the occupants of housing accommodations to be constructed and operated under this chapter.

"Conservation" means the preservation of any area or section of a community, and the supervision and care of such area or section, to prevent the reoccurrence or spread of slum conditions or conditions of blight.

"Department" means the Department of Housing.

"Governing Body" means the city council, town council, commissioners, or other legislative body charged with governing the municipality or county council or levy court commissioners or other legislative body charged with governing the county.

"Government" includes the State and Federal Governments, and any subdivision, agency or instrumentality, corporate or otherwise, or either of them.

"Housing Authority" means any public body created by or pursuant to chapter 43.

"Issuing Officers" or "Issuing Officer" means the Secretary of Housing and the Assistant Secretary of Housing.

"Obligee" includes any bondholder, agents or trustees for any bondholders, or lessor demising to the property of the State Authority used in connection with a project, or any assignee or assignees of such lessor's interest or any part thereof, and the Federal Government when it is a party to any contract with the State Authority.

"Persons of low or moderate income" means persons or families who lack the amount of income which is necessary, as determined by the authority undertaking a project, to enable them, without financial assistance, to live in decent, safe and sanitary dwellings, without overcrowding.

"Public body" means the State or any municipality, county, township, board, commission, authority, district, or any other subdivision or public body of this State.

"Real property" includes all lands, including improvements and fixtures thereon, and property of any nature appurtenant thereto, or used in connection therewith, and every estate, interest and right, legal or equitable, therein, including terms for years and liens by way of judgment, mortgage or otherwise and the indebtedness secured by such liens.

"Secretary" means the Secretary of Housing.

"State Authority" means the Delaware State Housing Authority, created by Section 4050 of this Chapter.

"State Commissioner" means one of the members of the State Bureau of Housing.

"Workable program" means an official community plan of action for using local public and private resources to eliminate

and prevent slums and blight, and to guide the community's orderly growth and development.

§ 4002. Purpose; construction

(a) It shall be the purpose and intent of this Chapter to establish the means whereby the full resources of this State can be used and applied in a coordinated and integrated manner to solve or assist in the solution of problems arising from unsanitary or unsafe dwelling accommodations as well as slums, blighted and deteriorated areas throughout the State, which cause an increase in and spread of disease and crime and constitute a menace to the health, safety, morals and welfare of the residents of the State and impair economic values; to promote the clearance, planning, replanning and redevelopment of slums as well as other areas in which unsanitary or unsafe housing conditions exist; to promote the rehabilitation or conservation of blighted and deteriorated areas including areas in which such unsanitary or unsafe housing conditions exist; to prevent the further development of slums or blighted or deteriorated areas; to provide housing accommodations to satisfy the existing acute shortage of decent, safe and sanitary housing available either at low rentals, purchase or otherwise which persons and families of low and moderate income, elderly persons and veterans including those who will be returning home from Vietnam can afford; to provide a source where the housing and construction industry and local governments may obtain information on the nature and availability of Federal assistance for housing and community development programs and new trends which are evident from development in these fields; to assist the State Planning Office and other state, local and regional planning authorities in the preparation and implementation of comprehensive plans and programs for rural and urban housing and improvement of housing in this State; and to coordinate the housing and urban renewal and redevelopment activities of State Agencies, and other public agencies and private bodies with such responsibilities within the State.

(b) The department shall, in addition to the other powers and duties invested in it by this act, or by any other law, assist in the coordination of State and Federal activities relating to housing, slum clearance, urban and rural relocation, redevelopment and renewal activities of municipal, county, and regional

agencies and authorities; advise and inform the Governor on the affairs and problems relating to housing, slum clearance, urban and rural relocation, redevelopment and renewal and make recommendations to the Governor for proposed legislation pertaining thereto; encourage cooperative action by municipal and county governments, including joint service agreements and regional cooperation; study the entire field of housing, slum clearance, urban and rural relocation, redevelopment and renewal in the State; collect, collate, publish and disseminate information necessary to the effective operation of the department, including data and information required to advise the housing and construction industry and municipal, county and regional agencies or authorities of available State and Federal Services and programs for Housing and community development programs; to stimulate municipal, county, and regional activities in the fields of housing, slum clearance, urban and rural redevelopment and renewal through publicity, education and guidance; recommend, implement and enforce a Statewide housing code as may be necessary to develop workable programs for community improvements.

(c) Whenever the Department determines that a need for housing accommodations or services for low and moderate income persons or families, for elderly persons or veterans, exists in either urban or rural areas which is not being met, the Department shall undertake to supply such accommodations or services as soon as possible in such manner as the Department deems best through the activities of the State Housing Authority or through direct assistance pursuant to the provisions of Subchapter V of this Chapter.

(d) This part shall be construed according to the fair import of its terms and shall be liberally construed to further the general purposes stated in this section and the special purposes of the particular provision involved.

SUBCHAPTER H. ORGANIZATION

AND ADMINISTRATION

§ 4003. Establishment of a Department of Housing

There shall be a Department of Housing within the government of this State which shall consist of the Secretary of Housing, a Bureau of Housing, a State Housing Authority.

§ 4004. Secretary of the department

The administrator and head of the department shall be a Secretary of Housing, who shall be a person qualified by training and experience to perform the duties of his office. The Secretary shall be appointed by the Governor, with the advice and consent of the Senate, and shall serve on a full time basis at the pleasure of the Governor and until the appointment and qualification of the Secretary's successor. The Governor shall set the salary of the Secretary of Housing, which shall not exceed $25,000 per year.

§ 4005. Assistant secretary of the department

The Governor shall appoint, upon written recommendation of the Secretary of Housing and with the advice and consent of the Senate, an Assistant Secretary of Housing who shall be a person qualified by training and experience to perform the duties of his office. The Assistant Secretary of Housing shall be the Chairman of the Bureau of Housing and shall perform such other duties as the Secretary of Housing may direct. The Assistant Secretary of Housing shall serve on a full time basis and, in the absence of the Secretary of Housing, shall be the head of the Department. The Governor shall set the salary of the Assistant Secretary of Housing, which shall not exceed $20,000 per year.

SUBCHAPTER III. JURISDICTION;

POWERS AND DUTIES

§ 4006. The secretary may

1. Develop, revise and maintain a State comprehensive plan for the coordination, development and improvement of housing accommodations or services for low and moderate income persons or families or for elderly persons and for slum clearance, urban and rural redevelopment and renewal programs. This shall be done in cooperation with any municipal, county, regional planning, housing, renewal or rehabilitation agency or authority and in cooperation with the assistance and review of the State Planning Office;

2. Develop programs designed to promote the clearance, replanning and redevelopment of slums as well as other areas in which unsanitary or unsafe housing conditions exist;

3. Develop programs to promote the rehabilitation or conservation of blighted and deteriorated areas including areas in which unsanitary and unsafe housing conditions exist;

4. Develop programs to prevent the further development of slums, or blighted or deteriorated areas;

5. Develop programs to provide housing accommodations-or services either at low rentals or purchase or otherwise for persons and families of low income, elderly persons and for veterans;

6. Assist municipal, county and regional governmental bodies in the development and establishment of workable programs for community improvement for the purpose of qualifying for Federal assistance;

7. Coordinate the activities of the State Housing Authority with the activities of municipal, county and regional housing, renewal and rehabilitation agencies and authorities to furnish housing accommodations or services either at low rentals or purchase or otherwise for persons and families of low or moderate income, and for elderly persons as the public need may require after a public hearing on the need for such accommodations or services;

8. Assist in the coordination of State and Federal activities relating to housing, slum clearance, urban and rural relocation, redevelopment and renewal activities of municipal, county and regional agencies and authorities;

9. Promote and encourage cooperative action by municipal and county governments, including joint service agreements, regional compacts and other forms of regional cooperation in the fields of housing, slum clearance and rural and urban redevelopment and rehabilitation;

10. Inquire into the utilization of state resources in, and study the entire fields of housing, slum clearance, urban and rural redevelopment and renewal in the State and collect, collate, publish and disseminate information necessary to the effective operation of the department, including data and information required to advise the housing and construction industry and municipal, county, and regional agencies and authorities of available State and Federal services and programs in those fields;

11. Otherwise stimulate municipal, county and regional activities in the field of housing, slum clearance, urban and rural redevelopment and renewal, through publicity, education and guidance;

12. Cooperate with intra or interstate commissions and authorities, county governing bodies, State departments, councils, bureaus, commissions, and other State Agencies, appropriate Federal agencies, municipalities, and with interested private individuals and organizations in the coordinating of plans and policies for promoting and developing housing, slum clearance and urban and rural relocation, rehabilitation and renewal activities;

13. Employ, in his discretion, planning, architectural and engineering consultants, attorneys, accountants, construction, and financial experts and consultants, superintendents, managers, and such other officer, employees and agents as may be necessary in his judgment;

14. Call to the assistance of the Bureau the services of such employees of any Federal or State agency as it may require to conduct its investigative powers and as may be available for such purpose;

15. Delegate any of his powers and duties, except those of an issuing officer, to employees or other agencies of the Department;

16. Create and appoint members of advisory boards;

17. Supervise the activities of the Bureau of Housing; and

18. Enter into any and all agreements or contracts on behalf of the State of Delaware and or the State Housing Authority, execute any and all instruments and do and perform any and all acts or things necessary, convenient or desirable for the implementation or the purposes of this Chapter or to carry out any power or duty given in this Chapter.

§ 4007. The secretary shall

1. Direct the Department's operations;

2. Recommend to the General Assembly for enactment and enforcement of a State Housing Code or from time to time any provisions or amendments thereto;

3. Make an annual report to the Governor and the General Assembly of the Department's operations; and render such other reports as may be required by law;

4. Make and enforce regulations to effectuate the purposes of this Act;

5. Determine the terms and conditions for the allocation and grant of State funds authorized by this Act.

SUBCHAPTER IV. THE STATE BUREAU OF HOUSING

§ 4015. Composition; appointments; terms; vacancies

There shall be a State Bureau of Housing within the Department of Housing, referred to in this Chapter as the "Bureau", which shall consist of the Assistant Secretary of Housing, who shall serve as Chairman, and six members, together with the pro tempore citizen members of the former State Board of Housing as set forth in Section 9 hereof. The members of the Bureau shall each be appointed by the Governor, upon written recommendation of the Secretary of Housing, from among the residents of this State, who have demonstrated an interest in slum clearance, urban and rural development, and the promotion of better housing to serve at the pleasure of the Governor, and shall serve until the appointment of a successor. In the case of any vacancy on the Bureau, for whatever reason, such vacancy shall he filled by the Governor, upon written recommendation of the Secretary of Housing.

The Chairman of the Bureau shall direct the Bureau's operations and shall perform such other duties as the Secretary may direct.

The duties and responsibilities of the Bureau as more particularly set forth in this subchapter shall be at all times exercised under and subject to the supervision and direction of the Secretary. The Secretary may assign to employment in the Bureau such secretarial, clerical and other assistants in the Department as the internal operation of the Bureau shall require, and for such purposes as he shall consider necessary.

§ 4016. Meetings; quorum; by-laws

The Bureau shall meet at least once each month at the call of the Secretary or the Assistant Secretary in the Secretary's absence and more often if necessary, and three members shall constitute a quorum for the transaction of business. The Bureau may adopt such by-laws as may be necessary to govern their proceedings.

§ 4017. Compensation and expenses of members

No member other than the Assistant Secretary shall receive any compensation whether in the form of salary, per diem allowances or otherwise, for or in connection with his services as a member of the Bureau. Each member shall, however, be entitled to reimbursements, to the extent of appropriations or other funds available therefor, for any necessary expenditures in connection with the performance of his duties.

§ 4018. Employees and expenses

The Secretary may assign to the Bureau such assistants or employees and authorize them to make such reasonable expenses as may be necessary to carry out the provisions of this chapter.

§ 4019. Powers and duties of bureau

The Bureau may with the approval of the Secretary:

(1) Study housing conditions and needs throughout the State to determine in what areas congested and unsanitary housing conditions constitute a menace to the health, safety, morals, welfare and reasonable comfort of the citizens of the State;

(2) Prepare programs for correcting such conditions;

(3) Collect and distribute information relating to housing;

(4) Investigate all matters affecting the cost of construction or production of dwellings;

(5) Study and cooperate with other State regional and local agencies in the study of means of lowering rents of dwellings, including recurring economy in the construction and arrangement of buildings; providing of social services and homemaking programs, methods of repair, securing low-interest financing, use of modern development approaches, and tenant participation in the operation of housing;

(6) Cooperate with local housing officials and planning commissions or similar bodies in cities and other localities in the development of projects, which may be at any time under consideration;

(7) Encourage community organizations to assist in initiating housing projects for low income or moderate income persons, urban and rural rehabilitation, redevelopment, and slum clearance projects as provided in Chapters 43 and 45, and to encourage and study means for making homeownership available to low and moderate income families;

(8) Encourage research in demonstration projects to develop new and better techniques and methods for increasing the supply of housing for low income or moderate income persons or families;

(9) Undertake and carry out studies and analyses of housing needs within the state and ways of meeting such needs including compilation of data with respect to population and family groups and the distribution thereof according to income groups, the amount and quality of available housing and its distribution to rentals and sales prices, employment, wages and other factors affecting housing needs and the Bureau thereof; and make the results of such studies and analyses available to the public and the housing and supply industries; and engage in research and disseminate information on housing;

(10) Survey and investigate the housing conditions and needs, both urban and rural, throughout the State and make recommendations to the Secretary as to legislation allocation of assistance under Subchapter V herein and other measures necessary or advisable to alleviate any existing or projected housing shortage in the state for his recommendation to the Governor and the Legislature;

(11) Cooperate with the State Housing Authority in the development and implementation of housing projects including recommendations as to housing needs, assistance of staff personnel, and providing material and information on housing needs and requirements in Delaware;

(12) Assist communities to develop and carry out workable programs for community improvements.

§ 4020. Investigative powers; power to compel assistance of witnesses and production of books

(a) The Bureau may investigate the affairs of housing authorities and all urban renewal and rehabilitation activities by municipal, county and regional agencies and authorities, and the dealings, transactions, or relationships of such authorities with other persons. The Bureau may act through a committee of its members in conducting any of the investigations provided for in this chapter and the chairman of any such committee shall have all the powers of the Bureau. Each member of the Bureau may administer oaths, take affidavits and make personal inspections of all places to which their duties relate. The Bureau may subpoena and require the attendance of witnesses and the production of books and papers pertaining to the investigations and inquiries authorized in this chapter and examine them in relation to any matter it has power to investigate, and issue commissions for the examination of witnesses who are out of the State or unable to attend before the Bureau are excused from attendance.

() The Bureau may hold hearings at such places and at such times as shall be determined by the Bureau to hear complaints on housing by any aggrieved person as contemplated by this Chapter. The procedure outlined in subsection (a) shall apply to such hearings. Written reports shall be rendered in all cases to the Secretary within 10 days after such hearing. Notice of complaint by any aggrieved person shall be in writing stating the nature thereof and may be made to any member of the Bureau.

(a) Upon the failure of any person to comply with a subpoena duly issued by the Bureau, the Bureau may seek an order from the Superior Court of the County in which the person subpoenaed resides, has a place of business or can be found to show cause why that person should not be held in contempt for failure to comply with the subpoena.

§ 4021. State Housing Code

(a) The Bureau shall recommend to the Secretary for his recommendation to the General Assembly pursuant to §4007. (2), after notice and public hearings, a statewide housing code to fully implement the policies and activities in the field of housing as contemplated by this chapter. The code shall contain such rules and regulations as may be necessary to establish and develop workable programs for community improvements whenever and wherever they are needed to qualify for Federal assistance.

(b) The administrative procedures relative to the times, places, and extent of said hearings shall be within the province of the Bureau.

(c) Such State Housing Code shall be drafted to have effect in all areas of the State of Delaware where either a housing code does not exist or does not comply with the standards and provisions of the State Housing Code and such other codes, rules and regulations to establish and develop workable programs for community improvements whenever and wherever they are needed to qualify for Federal assistance. It shall also provide that whenever a municipal or county housing code or regulation exists, the Bureau shall determine (1) its effectiveness, (2) its compliance with the State Housing Code. Such a determination shall create a presumption of compliance in any judicial or administrative proceeding.

§ 4022. Enforcement of State Housing Code; establishment of office of Housing Code Enforcement

(a) There is established, within the Department an Office of Housing Code enforcement to function directly under the supervision of the Secretary to carry out and enforce the provisions of the State Housing Code.

(b) The office shall be staffed with necessary personnel, including inspectors, as may be determined by the Bureau.

SUBCHAPTER V. STATE FINANCIAL ASSISTANCE

§ 4030. Financial assistance for preparation of community action plans

(c) Any community may prepare a community development action plan which shall, to the extent feasible and appropriate, include the elements of a workable program for community improvement which shall include but not be limited to an official plan of action, as it exists from time to time, for effectively dealing with the problem of urban slums and blight within the community and for the establishment and preservation of a well planned community with well-organized residential neighborhoods of decent homes and suitable living environment for adequate family life, for utilizing appropriate private and public resources to eliminate, and prevent the development or spread of slums and urban blight, to encourage needed urban rehabilitation, to provide for redevelopment of blighted, deteriorated, or slum areas, or to undertake such of the aforesaid activities or other feasible community activities as may be suitably employed to achieve the objectives of such a program.

A community development action plan shall be submitted to the regional or local planning agency, if any exists, for the planning area in which a community preparing such plan is situated. Said regional or local planning agency shall render an advisory opinion on such plan within sixty days of the referral of such plan and shall provide written copies of such opinion to the referring community and the Secretary. A community shall submit its community development action plan to the Secretary for approval.

(d) In order to receive State financial assistance under any provision of this Subchapter a community shall prepare a program for the preparation of a community development action plan. Such program shall include, among other things, (1) a general description of the physical, economic and human resource characteristics of the community, including the known physical economic and human resource, problems and needs of the community and identifying potential physical, economic and human resource needs and programs; (2) a schedule of work to be undertaken to assure the timely preparation of the community development action plan within the initial two-year period; (3) a description of the means by which such community proposes to complete the community development action plan, including, but not limited to, the name of the official, board, commission, or agency designated to undertake the completion of the community development action plan and the names of independent contractors, if any, who have been or may be engaged to assist it in such preparation, or a request to the Secretary for such assistance, and shall contain a commitment to comply with the requirements of Section 6 of this Act. Such program shall be approved, and the undertaking of the community development action plan authorized, by the governing body of the community prior to the submission of the program to the Secretary for his approval. Progress reports on the preparation of the community development action plan shall be submitted to the Secretary at intervals of not less than six months commencing from the date of approval of the first application for state assistance under this act. The community development action plan shall be submitted to the Secretary for his approval within twenty-four months after the date of approval of such first application. If such community development action plan is not submitted to the Secretary and approved by the Secretary within twenty-four months after the date of approval of such first application, or the community does not show progress in the preparation of such community development action plan satisfactory to the Secretary within twelve months after such date, the State shall thereafter make no further payments of financial assistance or advances-in-aid of any program, project or activities in such community pursuant to the provisions of this act until such progress is shown or such plan is prepared by the community and approved by the Secretary; provided that the Secretary may grant a community an extension of time for preparing and securing his approval of such plan when the Secretary determines such extension to be in the best interest of the State and of the people of such community.

§ 4031. Financial assistance for redevelopment and urban renewal projects

(a) The State, acting by and in the discretion of the Secretary may enter into a contract with a community acting by its redevelopment agency, for state financial assistance for a redevelopment or urban renewal project under Chapter 46 of Title 31, Delaware Code, as amended, in any redevelopment or urban renewal area in such community as defined in said chapter 45; provided such project shall have been approved for surveys and plans by the federal Department of Housing and Urban Development under the Federal Housing Act of 1949, as amended. Such contract shall provide for financial assistance by the State equal to one-half of the amount by which the net cost of the project, as determined by the Secretary, exceeds the federal grant-in-aid thereof.

§ 4032. Financial assistance for demolition of unsafe structures and urban beautification

§ 4033. Financial assistance for development of neighborhood facilities and community services

The State, acting by and in the discretion of the Secretary may enter into a contract with a community for State financial assistance in developing neighborhood facilities for carrying out programs of health, recreational, social or similar community services; provided such project will have been approved by the federal Department of Housing and Urban Development under the Federal Housing and Urban Development Act of 1965, as amended. Such contract shall provide for State financial assistance equal to one-half of the amount by which the net cost of the project as approved by the Secretary exceeds the federal grant-in-aid thereof.

§ 4034. Non-profit housing development corporation

A non-profit housing development corporation may qualify for assistance under section 4035 of this subchapter provided; (1) it shall be organized for purposes other than to make a profit or gain for itself and shall not be controlled or directed by persons or firms seeking to derive profit or gain therefrom; (2) it shall provide housing as defined in this section.

As used in this section, the term "housing" means housing acquired, or constructed, or rehabilitated and (1) leased under section 221 (D3) of the Federal Housing Act of 1961, as amended, to families and individuals eligible for rent supplements under the Federal Housing and Urban Development Act of 1965, as amended; or (2) sold under section 221 (h) of the Federal Housing Act of 1961, as amended; or (3) sold or leased to or under a contract with a housing authority under the provisions of the Federal Housing Act of 1937 as amended; or (4) sold or leased under any provisions of any statute of the United States or this State which restricts ownership or occupancy to families or individuals whose incomes do not exceed limits prescribed by such statute or by regulatory agreement.

§ 4035. Financial assistance to community housing development corporation

The State, acting by and in the discretion of the Secretary may enter into a contract with a non-profit housing development corporation for State financial assistance in the form of a state financial assistance equal to the cost of the non-profit housing development corporation, as approved by the Secretary, of developing low income housing under section 4034 of this subchapter but limited to the following expenses: (1) appraisals, title searches, legal fees, option agreements, architectural, engineering and consultants' fees, financing fees, closing costs and such other expenses as may be financed by a mortgage loan under any federal or state housing statute incurred by a non-profit housing development corporation prior to the disbursement of mortgage loan funds on account of such property; provided, to the extent such expenses are recovered by the non-profit housing development corporation from the mortgage loan, such expenses shall be repaid to the State; (2) the costs of land in excess of the appraised value; (3) the administrative and overhead costs of such corporation; (4) the costs of an information program in connection with such housing; (5) the costs of a social services program in connection with the low income housing program; and (6) such other reasonable costs related to the development of such housing as may be approved by the Secretary.

§ 4636: Financial assistance for social and supplementary services

Any housing authority or non-profit housing corporation may prepare and submit to the Secretary for approval a program of social and supplementary services and project rehabilitation and improvement for any or all housing projects within the jurisdiction of such housing authority or corporation. Such program shall include the estimated costs of the services, rehabilitation and improvement and the method and staff required to carry out such program. After approval of such program by the Secretary, the State acting by and in the discretion of the Secretary may enter into a contract with the housing authority or non-profit housing corporation conditioned upon the housing authority, nonprofit housing or corporations performing the program approved. Such contract shall provide for State financial assistance equal to one-half the cost of such program.

§ 4037. Financial assistance for relocation

The State, acting by and in the discretion of the Secretary, may enter into a contract with a community for State financial assistance equal to the cost of relocating individuals, families, business concerns and farms displaced by governmental action who have been reimbursed for moving costs in a condemnation proceeding and who are not otherwise reimbursed or entitled to reimbursements by the federal government or the State. Such contract shall provide for financial assistance by the State equal to the cost of relocation as determined by the Secretary. Whenever used in this section "governmental action" means any action by any agency, board, commission or department of the State or any community or any public authority which causes the displacement of any individual family, business concern or firm; "business concern" means a corporation, partnership, individual, or other private entity, concern, corporate or otherwise, including a non-profit organization engaged in some type of business, professional or institutional activity necessitating fixtures, equipment, stock in trade or other tangible property for the carrying on of the business, profession or institution; "farm" means a parcel of land or parcels of land operated as a single unit, which is used for production of one or more agricultural commodities for sale and home use and which customarily produces or is capable of producing such commodities in sufficient quantity to contribute materially to the operator's support, including the operation of stock, dairy, poultry, fruit, fur-bearing animal and truck farms, plantations, ranches, nurseries, ranges and greenhouses or other similar structures used primarily for raising agricultural or horticultural commodities; "moving expenses" means the cost of dismantling, disconnecting, crating, loading, insuring, temporary storing, transporting, unloading, reinstalling and reconnecting of personal property, exclusive of the cost of any additions, improvements, alterations or other physical changes in or to any structure in connection with affecting such reassembly, reconnection or reinstallation. The amount of relocation assistance paid in accordance with the provisions of this section shall not exceed two hundred and fifty dollars for any individual or family or twenty-five thousand dollars for any business concern or farm. The chief executive officer of the community shall administer the relocation assistance as authorized herein to all persons, families, business concerns or farms displaced by governmental action in such community and may authorize any municipal agency, board, commission or department to prepare a relocation plan for individuals, families, business concerns and farms to be displaced by the proposed governmental action, and to file such plan with the Secretary. Upon approval of the plan by the Secretary, the community shall be authorized to expend such funds as may be necessary to accomplish the purposes of this section. The Secretary shall make payment to such community for the purpose of defraying the reasonable cost of preparing and carrying out the provisions of this section, in an amount equal to the actual cost incurred by such community for relocation assistance and local cost of administration, provided the amount of such payment for other than administrative costs shall not exceed two hundred and fifty dollars for any individual or family or twenty-five thousand dollars for any business concern or farm. The Secretary shall review the scope and adequacy of all relocation assistance offered in Delaware by any public body, for any individual, family, business concern or farm displaced by governmental action where such displacement and relocation is not reviewed by a federal agency or another State agency, to assure that adequate relocation assistance is available to all individuals, families, business concerns and farms displaced by governmental action in the State, including assistance from public and private social service agencies for displaced families and individuals suffering from problems of deprivation and poverty. No payment for moving expenses shall be made under the provisions of this section to any person, family, business concern or farm unless the Secretary is satisfied that such person, family, business concern or farm has moved to a location within the State.

§ 4038. Financial assistance for community plan for development

(a) The State, acting by and in the discretion of the Secretary may enter into a contract with a community for State financial assistance equal to two-thirds of the cost of developing or updating community plans of development. The Secretary shall assure that any planning performed by any community with State financial assistance under this section shall be adequate to meet the standards and criteria of the federal Urban Planning Assistance Program administered by the federal Department of Housing and Urban Development and such other federal planning criteria for such other federal programs as may be appropriate. No State financial assistance shall be made under this section unless federal funds for the purposes described herein are not available, as determined by the Secretary, at the time of application for such State financial assistance; provided, if federal funds subsequently become available for the same purpose for which State financial assistance had been granted, the community shall repay the Secretary from such federal funds an amount equal to such State financial assistance, if, under federal law, such federal funds may be so used, or the Secretary may apply to the United States for and accept such funds as reimbursement for such State financial assistance.

(b) The Secretary may in his discretion make advances of funds to communities for up to eighty per cent of the costs, as approved by the Secretary of surveys and planning in preparation of any project, program or activity for which State financial assistance is provided under this act, and the contracts for such advances of funds shall require that such advances shall be repaid to the State if the community receives funds for the purposes of this subsection from a source other than the State.

(c) The State, acting by and in the discretion of the Secretary may enter into a contract with a community to pay eighty percent of the costs, approved by the Secretary for preparation, review or revision, of community development action plan as described in subsection (a) of section 4030 of this subchapter.

(d) The State, acting by and in the discretion of the Secretary, may enter into a contract with a housing authority or two or more housing authorities acting jointly for technical assistance and financial assistance in the form of a State grant-in-aid not to exceed two-thirds of the cost of conducting housing surveys and research as approved by the Secretary and as authorized in chapter 43, Title 31, Delaware Code.

SUBCHAPTER VI. ESTABLISHMENT OF STATE

HOUSING AUTHORITY

§ 4050. Composition; appointment; term, vacancy

There is hereby created in the Department of Housing a Public Corporation of perpetual duration to be called the "Delaware State Housing Authority." The provisions of Chapter 43 of Title 31, Delaware Code, shall apply to the State Authority and to its projects as fully as such provisions apply to a housing authority created by section 4303 of that Chapter and to its housing projects; provided, however, that the State Authority shall not be subject to sections 4303, 4305, 4306, 4314, 4317, 4318 of Title 31, Delaware Code.

The State Authority shall exercise all its powers and functions 'by and through the Secretary.

The Secretary may assign to employment within the Authority such employees as deemed necessary to carry out its assigned duties and functions.

§ 4051. Authority to contract for labor or materials

The State Authority shall contract for labor or materials (except labor or materials used in the maintenance or operation of projects) pursuant to the manner prescribed in Chapter 69, Title 29, for Departments and other agencies of the State Government.

§ 4052. Seal of The State Housing Authority

The State Authority shall have a corporate seal in the form of a circle bearing the arms of the State in the center and the name of the Authority in the border. All deeds, contracts or other obligations, certificates, or other instruments executed, including bonds which are provided for in Section 4055, made or issued on behalf of the Authority, shall bear the signature of the Secretary and have impressed, or imprinted thereupon, the seal of the Authority, or facsimile thereof, and when so appearing shall be conclusively presumed in any judicial action or proceeding the valid act and deed of the authority. The presumption set forth in this provision shall also apply to all bonds executed pursuant to the provisions of section 4054 of this sub-chapter.

§ 4053. Powers of the State authority

The State Authority, in addition to its other powers, shall have power, notwithstanding anything to the contrary contained in this chapter or in any other provision of law:

(a) To exercise any or all of the powers conferred upon it, either generally or with respect to any specific housing project or projects, through or by an agent or agents which it may designate including any corporation or corporations which are or shall be formed under the Jaws of this State, and for such purposes the authority may cause one or more corporations to be incorporated under the laws of this State or may acquire the capital stock of any corporation or corporations. Any corporate agent, all of the stock of which shall be owned by the State Authority or its nominee or nominees, may to the extent permitted by law exercise any of the powers conferred upon the State Authority herein, conferred upon it by the State Authority as agent.

(e) To fund the operation of any agents it may designate or any authority by advancing moneys appropriated pursuant to section 4067 of this subchapter.

(f) To make first mortgage loans without interest on such terms and conditions as may be determined by the Secretary of Housing, for the construction, financing, refinancing or rehabilitation of housing for low and moderate income persons and families;

(g) To insure mortgage loans to finance the building or rehabilitation of housing designed and planned to be available at low and moderate rentals for sale at low and moderate income persons and families;

(h) To build or rehabilitate housing designed and planned to be sold at low and moderate prices to low and moderate income persons and families.

§ 4054. Bonds

(a) The State Authority may with the approval of the Issuing Officer issues bonds (including refunding bonds for the purpose of paying or retiring bonds previously issued by the authority) from time to time in such amounts as it may deem advisable for any of its corporate purposes. The authority may issue such types of bonds as it may determine, including bonds on which the principal and interest are payable; (a) exclusively from the income and revenues of any undertaking financed in whole or in part with the proceeds of such bonds; or (b) exclusively from the income and revenues of certain designated housing projects whether or not they were financed in whole or in part with the proceeds of such bonds; or (c) from its revenues generally or (d) grants, subsidies or other payments from the Federal Government. Any of such bonds may be additionally secured by a pledge of any revenues or a mortgage of any housing project, projects or other property of the State Authority or any of its agents or designees;

(b) Neither the Issuing Officers nor any person executing the bonds shall be liable personally on the bonds.

§ 4055. Forms and terms of bonds; disposition of proceeds

(a) All bonds issued under the authority of this sub-chapter shall be dated, shall bear interest at such rate or rates, not exceeding the allowable maximum interest established by Section 2301 of Title 6, Delaware Code, as amended, payable semiannually, shall mature at such time or times and may be made redeemable before maturity at such times and at such price or prices and under such terms and conditions as may be fixed by the Issuing Officers prior to the issuance of the bonds. The principal of and the interest upon such bonds may be made payable in any lawful medium. The Issuing Officers shall determine the form of the bonds, including any interest coupons to be attached thereto, and shall fix the denominations of the bonds. Both principal of and interest on the bonds shall be payable at the Farmers Bank of the State of Delaware, at Dover, or at such alternate places as the aforesaid Farmers Bank may designate;

(b) Bonds shall be signed by manual or facsimile signature of the Secretary and the seal of the State Authority or a facsimile thereof shall be affixed thereto or imprinted thereon and said seal shall be attested by the manual or facsimile signature of the Assistant Secretary. Any coupons attached thereto shall bear the facsimile signature of the Secretary. In case any person whose signature or facsimile thereof shall appear on any bonds or coupons shall cease to be the Secretary before the delivery of such bonds, such signature or facsimile shall, nevertheless, be valid for all purposes, the same as if he had remained in office until delivery;

(c) All bonds issued under the provisions of this sub-chapter shall have, and are declared to have, all the qualities and incidents of negotiable instruments under the Uniform Commercial Code;

(d) Such bonds and the income therefrom shall be exempt from all taxation by the State of Delaware or by any political subdivision, agency or authority thereof;

(e) The bonds may be issued in coupon or registered form, or both, as the Issuing Officers may determine, and provision may be made for the registration of any coupon bond as to principal alone or as to both principal and interest, and for the reconversion of any bonds registered both as to principal and interest into coupon bonds;

(f) The Issuing Officers may sell such bonds either at public or private sale in such manner and for such price as they may determine to be for the best interest of State Authority but no such sale may be at a price so low as to require the payment of interest on money received therefor at more than the allowable maximum interest established by Section 2301 of Title 6, Delaware Code as amended, computed with relation to the absolute maturity of the bonds in accordance with standard tables of bond values;

(g) The proceeds of such bonds, exclusive of accrued interest, shall be used solely for the purposes specified in the resolution of the State Authority authorizing the issuance thereof, or as set forth in the indenture securing their payment, which purposes may include redemption premiums, interest on bonds to be refunded to the redemption date or date of maturity thereof and all legal and other expenses of their issuance, and shall be disbursed under such restrictions, if any, as said resolution or trust indenture may provide;

(h) The proceeds of such bonds shall at no time revert to the General Fund of the State Treasury but shall at all times he available to the State Authority for the aforesaid purposes; provided, however, that if the proceeds of the bonds of any issue shall exceed the amount required for the purpose or purposes for which such bonds are authorized to be issued, the surplus may be used for any purpose of the State Authority authorized in this sub-chapter or for the payment of the principal of or interest on its outstanding bonds;

() Prior to the preparation of definitive bonds the Issuing Officers may issue temporary bonds with or without coupons, exchangeable for definitive bonds upon the issuance of the latter. The issuing officers may also provide for the replacement of any bond which shall become mutilated or be destroyed or lost. Such bonds may be issued without any other proceedings, conditions and things which are specified and required by this sub-chapter,

§ 4056. Bonds as legal investments for institutions and fiduciaries; and as legal deposit

The Bonds issued under the authority of this sub-chapter are hereby declared to be securities in which all State and municipal officers and administrative departments, boards and commissions of the State, all banks, bankers, savings banks, trust companies, savings and loan associations, investment companies, and other persons carrying on a banking business, all insurance companies, insurance associations, and other persons carrying on an insurance business, and all administrators, executors, guardians, trustees, and other fiduciaries, and all other persons whatsoever who now or may hereafter be authorized to invest in bonds or other obligations of the State, may properly and legally invest any funds, including capital belonging to them or within their control; and such bonds are hereby declared securities which may properly and legally be deposited with and received by any State, County or municipal officer or agency of the State for any purpose for which the deposit of bonds or other obligations of the State is now or may hereafter be authorized by law.

§ 4057. Credit of state not pledged

Bonds issued under the provisions of this sub-chapter shall be payable exclusively from the revenues and other funds of the State Authority and shall contain the following statement on their face: The State of Delaware is not obligated to pay the principal of this bond nor the interest thereon; nor are the faith and credit of the State pledged to the payment of the principal of, or interest on this bond. The issuance of bonds under the provisions of the subchapter shall not directly or indirectly or contingently obligate the State to levy or pledge any form of taxation whatever therefor or to make any appropriation for their payment and the bonds shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction.

§ 4058. Provisions of bonds and mortgages

In connection with the issuance of bonds or the incurring of any obligation under a lease, and to secure the payment of such bonds or obligations, the State authority in addition to its other powers may:

(1) Pledge all or any part of its rents, fees or revenues to which its right then exists or may thereafter come into existence;

(2) Mortgage all or any part of its property, real or personal, then owned or thereafter acquired, including any of the public domain owned or acquired by it;

(3) Covenant against mortgaging all or any part of its property, real or personal, then owned or thereafter acquired or against permitting or suffering any lien thereon;

(4) Covenant with respect to limitations on its right to sell, lease or otherwise dispose of any project or any part thereof;

(5) Covenant against pledging all or any part of its rents, fees, and revenues to which its right then exists or may thereafter come into existence, or against permitting or suffering any lien thereon;

(6) Covenant as to the bonds to be issued and as to the issuance of such bonds in escrow or otherwise, and as to the use and disposition of the proceeds thereof;

(7) Covenant as to what other, or additional debts may be incurred by it;

(8) Covenant that the State authority warrants the title to the premises;

(9) Covenant as to the rents and fees to be charged, the amount to be raised each year or other period of time by rents, fees and other revenues, and as to the use and disposition to be made thereof;

(10) Covenant as to the use of any or all of its property, real or personal;

(11) Create or authorize the creation of special funds segregating the proceeds of any loans or grants, the revenues of any project or projects, reserves for principal and interest on its bonds and for operating contingencies, and other reserves; and covenant as to the use and disposal of the moneys held in such funds;

(12) Redeem the bonds, and covenant for their redemption, and provide the terms and conditions thereof;

(13) Covenant against extending the time for the payment of its bonds or interest thereon;

(14) Prescribe the procedure, if any, by which the terms of any contract with bond holders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which such consent may be given;

(15) Covenant as to the maintenance of its property, the replacement thereof, the insurance to be carried thereon, and the use and disposition of insurance moneys;

(16) Vest in an obligee, in the event of a default by the State authority, the right to cure any such default and to advance any moneys necessary for such purpose, and covenant that the moneys so advanced be an additional obligation of such authority with such interest, security and priority as may be provided in any mortgage, lease or contract;

(17) Covenant and prescribe as to the events of default and terms and conditions upon which any or all of its bonds shall become or may be declared due before maturity, and as to the terms and conditions upon which such declaration and its consequences may be waived;

(18) Covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition or obligation;

(19) Covenant to surrender possession of a project or projects or parts thereof upon the happening of an event of default; and vest in an obligee the right, upon such default and without judicial proceedings, to take possession and use, operate, manage and control such projects or any parts thereof, and to collect and receive rents, fees and revenues arising therefrom in the same manner as such authority itself might do, and to dispose of the moneys collected in accordance with the agreement of such obligee with the authority;

(20) Vest in a trustee or trustees the right to enforce any covenant to secure, or pay the bonds, or otherwise relating to such bonds; provide for the powers and duties of such trustee or trustees, limit the liabilities thereof, and provide the terms and conditions upon which the trustee or trustees, or the holders of bonds, or any proportion of them may enforce any such covenant;

(21) Vest in a government or in a trustee the right, upon the happening of an event of default, to foreclose the mortgage securing any bonds held by such government, through judicial proceedings or through the exercise of a power of sale without judicial proceedings;

(22) Vest in other obligees the right, upon the happening of an event of default, to foreclose any mortgage through judicial proceedings;

(23) Vest in any obligee, the right to foreclose any such mortgage as to all or such part or parts of the property covered thereby as such obligee shall elect; the institution, prosecution and conclusion of any such foreclosure proceedings or the sale of any such pacts of the mortgaged property shall not affect in any manner or to any extent the lien of the mortgage on the parts of the mortgaged property not included in such proceedings Or not sold as aforesaid;

(24) Make covenants other than, and in addition to, the covenants herein expressly authorized, of like or different character and execute all instruments necessary or convenient in the exercise of the powers herein granted, or in the performance of its covenants or duties, which may contain such covenants and provisions, in addition to those above specified, as the government or any purchaser of the bonds of the State Authority may require;

(25) Make such covenants and do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds, or in the absolute discretion of the State Authority tend to make the bonds more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein.

§ 4059. Trust indenture

(a) In the discretion of the Issuing Officers each and any issue of such bonds may be secured by a trust indenture by and between the Issuing Officers and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the State;

(b) Such trust indenture may pledge or assign the revenues of the State Authority but shall not create a security interest in or convey or mortgage any real property owned, operated or maintained by the State Authority. Either the resolution providing the issuance of the bonds or such trust indenture may contain such provisions specifying, defining, protecting and enforcing the rights and not in violation of law, include covenants setting forth the duties of the State Authorities in relation to the acquisition, construction, improvement maintenance, operation, repair and insurance of any facilities or additions thereto, and the custody, safeguarding and application of all moneys;

(c) It shall be lawful for any bank or trust company incorporated under the laws of this State to act as such depository and to furnish such identifying bonds or to pledge such securities as may be required by the State Authority. Such indenture may set forth the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action of bondholders as is customary in trust indentures securing bonds and debentures of corporation;

(d) In addition to the foregoing, such trust indenture may contain such other provisions as Issuing Officers may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust indenture may be treated as a part of the cost of maintenance, operation and repairs of any facility to which such indenture is related or may be paid out of the revenues of the State Authority.

§ 4060. Remedies of bondholders and trustees

(a) Any holder of bonds issued under the provisions of this sub-chapter or any of the coupons attached thereto, and the trustee under the trust indenture, if any, except to the extent the rights given by this sub-chapter may be restricted by resolution passed before the issuance of the bonds or by the trust indenture, may either at law or in equity by suit, action, mandamus, or other proceedings protect and enforce any and all rights under the laws of the United States or of the State of Delaware or granted under this sub-chapter or under such resolution or trust indenture, and may enforce and compel performance of all duties required by this subchapter, or by such resolution or trust indenture, to be performed by the State Authority or any officer thereof, including the fixing, charging and collecting of fares or charges for the use of any facility operated by the State Authority;

(b) Such resolution or trust indenture may contain provisions under which any holder of such bonds or the trustee under such trust indenture shall be entitled to the appointment of a receiver in the event of a default, and any receiver so appointed shall have and be entitled to exercise all the rights and powers of the State Authority with respect to the facilities operated or maintained by the State Authorities and all of the appropriate rights and powers of a receiver in equity.

§ 4061. Moneys as trust funds

AlL moneys received pursuant to the authority of this subchapter, whether as proceeds from the sale of bonds, or grants or other contributions from any person corporate or otherwise or government or as fares and revenues, shall be deemed to be trust funds, to be held and applied solely as provided in this subchapter. The Issuing Officers shall, in the resolution authorizing the issuance of bonds or in the trust indenture, provide for the payment of the proceeds of the sale of the bonds and the fares and revenues to be received, to any officer, agency, bank or trust company who shall act as trustee of such funds, and shall hold and apply the same to the purposes of this sub-chapter, subject to such regulations as this sub-chapter and such resolution or trust indenture may provide.

§ 4062. Subordination of mortgage to agreement with government

The State Authority may agree in any mortgage made by it that such mortgage shall be subordinate to a contract for the supervision by a government of the operation and maintenance of the mortgaged property and the construction of improvements thereon. In such event, any purchase or purchasers at a sale of the property of the State Authority pursuant to a foreclosure of such mortgage or any other remedy in connection therewith shall obtain title subject to such contract.

§ 4063. Powers with respect to rural housing

In undertaking the provision of housing for individuals and families of low and moderate income in rural areas the State authority may comply with any conditions not inconsistent with the purposes of this chapter required by the federal government pursuant to federal law in any contract for financial assistance with the State authority concerning such undertakings.

§ 4064. Make payments to public bodies

The State Authority may agree to make such payments to the State, or any political subdivisions thereof (which payments such bodies are hereby authorized to accept) as the State Authority finds consistent with the maintenance of the low and moderate rent character of housing projects or the achievement of the purposes of this sub-chapter.

§ 4065. Advisory services

The State Authority is authorized to provide to non-profit housing corporations and consumer housing cooperatives, such educational services as will assist them to become owners of housing projects, in accordance with the provisions of this act. Advisory and educational services may include but are not necessarily limited, consultation services, training courses, seminars and lectures, and preparation and dissemination of newsletters and other printed materials and the services of field representatives. The State Authority is also authorized to provide nonprofit housing companies and consumer housing companies with advisory, consultative, technical, training and educational services in the management and training and advisory services for the residents of the housing projects so as to promote efficient and harmonious management of the housing projects so as to promote efficient and harmonious management of the housing projects; to make available technical and financial assistance and advisory services to any municipal, county or regional planning, zoning or redevelopment agency or commission, housing authority, or other appropriate agency for surveys, land use studies, municipal plans of development, urban renewal plans, housing plans, housing cite development plans, human resource development programs, community development action plans, and for other functions pertinent to municipal planning, zoning, redevelopment, urban renewal, the provision of adequate housing human resource development, industrial and commercial development, municipal public improvement programs and other rural, urban and municipal problems. Such financial assistance shall be rendered upon such contractual arrangements as may be agreed upon by the Secretary and any such agency, authority or commission in accordance with their respective needs.

§ 4066. Assistance to nonprofit sponsors of low and moderate income housing

(a) The State Housing Authority is authorized to provide or contract with public or private organizations to provide, information, advice, and technical assistance with respect to the construction, rehabilitation, and operation by non-profit organizations of housing for low or moderate income families. Assistance by the Secretary may include--

(1) the assembly, correlation, publication, and dissemination of information with respect to the construction, rehabitation, and operation of low and moderate income housing, and

(2) Providing advice and technical assistance with respect to the construction, rehabilitation, and operation of low and moderate income housing.

(b) (1) The Secretary is authorized to make loans not to exceed a total amount at any time outstanding and not repaid of $1,000,000 appropriated by section 467 of Title 31, Delaware Code, to nonprofit organizations for the necessary expenses, prior to construction, in planning, and obtaining financing for, the rehabilitation or construction of housing for low or moderate income families under any federally assisted program. Such loans shall be made without interest and shall not exceed 80 per centum of the reasonable costs expected to be incurred in planning, and in obtaining financing for such housing prior to the availability of financing, including, but not limited to, preliminary surveys and analyses of market needs, preliminary site engineering and architectural fees, site acquisition, application and mortgage commitment fees, and construction loan fees and discounts. The Secretary shall require repayment of loans made under this subsection, under such terms and conditions as he may require, upon completion of the project or sooner, and may cancel any part or all of a loan as he may determine cannot be recovered from the proceeds of any permanent loan made to finance the rehabilitation or construction of the housing.

(2) The Secretary shall determine prior to the making of any loan that the nonprofit organization meets such requirements and respect to financial responsibility and stability as he may prescribe.

§ 4067. Establishment of a housing development fund

There is hereby authorized to be appropriated from the Capital Investment Fund for the purposes of this subsection $5,000,000.00. All funds appropriated shall be deposited in a fund which shall be known as the "Housing Development Fund," which shall be administered by the Secretary, except as permitted by Section 4066 of this sub-chapter, as a revolving fund for carrying out the purposes of this subchapter. Sums received in repayment of loans made under this subsection shall be deposited in such fund.

Section 5. All rights, privileges and immunities vested or accrued by and under any laws enacted prior to the adoption or amendments of this Act, all suits pending, all rights of action conferred, and all duties, restrictions, liabilities and penalties imposed or required by and under laws enacted prior to the adoption or amendment of this Act, shall not be impaired, diminished or affected by this Act.

Section 6. The purpose of this act is to make available to all the citizens of this State decent and adequate housing without regard to the age, race, creed, color or national origin of any person.

The Department, The State Housing Authority, or any recipient of assistance under this Chapter, in determining the location or types of housing, accommodations, facilities, services, financial aid, or other benefits which will be provided, may not, directly or through contractual or other arrangements, utilize criteria or methods of administration which have the effect of subjecting persons to discrimination because of their age, race, color, or national origin, or have the effect of defeating or substantially impairing accomplishment of the objectives of the program or activity as respect persons of a particular age, race, color or national origin.

The Secretary shall include in all contracts other than bonds entered into pursuant to the provisions of this Chapter, the following provisions:

"During the performance of this contract, the contractor agrees as follows:

(1) The contractor will not discriminate against any employee or applicant for employment because of age, race, creed, color, or national origin. The contractor will take affirmative action to insure that applicants are employed and that employees are treated during employment, without regard to their age, race, creed, color, or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation, and selection for training, including an apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Secretary setting forth the provisions of this non-discrimination clause.

(2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to age, race, creed, color or national origin.

(3) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract, this contract may be cancelled, terminated or suspended in whole or in part by the Secretary.

Section 7. The sum of $100,000 is appropriated to the Department of Housing established herein for the fiscal year ending June 30, 1968, for the operation of the Department.

Section 8. This Act is a supplementary appropriation and the money appropriated shall be paid by the State Treasurer out of funds in the General Fund of the State of Delaware not otherwise appropriated.

Section 9. The members of the State Board of Housing serving at the time this act becomes law shall continue to serve out the term for which they were originally appointed as additional members pro tempore of the State Bureau of Housing.

Section 10. If any provision of this act or of any rule, regulation or order thereunder or the application of such provision to any person or circumstance shall be held invalid, the remainder of this act and the application of such provision of this act or of such rule, regulation or order to persons or circumstances other than those to which it is held invalid shall not be affected thereby.

Section 11. Any money appropriated herein and unexpended shall not revert to the General Fund of the State of Delaware until June 30, 1969.

Section 12. The first definition covering "Area of Operation" in Section 4501 of Title 31, Delaware Code, is hereby repealed, and the following definition is substituted therefor:

"Area of operation" means in the case of a municipality, the area within such municipality and in the case of a county, the area within the county except that the area of operation in such case shall not include any area which lies within the territorial boundaries of a municipality unless a resolution shall have been adopted by the governing body of such municipality declaring a need therefor; and in the case of a regional authority, shall mean the area within the communities for which such regional authority is created; provided, however, that a regional authority shall not undertake a redevelopment project within the territorial boundaries of any municipality or county unless a resolution shall have been adopted by the governing body of such municipality or county declaring that there is a need for the regional authority to undertake such redevelopment project within such municipality. No authority shall operate in any area of operation in which another Authority already established is undertaking or carrying out a redevelopment project without the consent, by resolution, of such other Authority.

Section 13. Notwithstanding any other provision of this bill or of any other prior statute, no "Authority" or "Housing Authority" shall be created or operated within the boundaries of any municipality or county without the express prior approval of the governing body of the municipality or county involved.

Approved June 3, 1968.