defense housing projects

defense housing projects Sec. 807. Section 606 of the Act of October 14, 1940, as amended (42 U.S.C. 1586), is amended— (1) by inserting the following sentence after the first sentence of subsection (b) : “If any such project is consolidated under a single annual contributions contract with any low-rent project being assisted with annual contributions under the said Act, the payment of any annual contribution on account of any project so assisted shall not be deemed to be a capital grant or annual contribution with respect to any project conveyed hereunder.”; and (2) by inserting the following proviso before the semicolon at the end of subsection (c) (3): “:Provided, That the provisions of this paragraph shall not be applicable to any project which is 73 Stat. 688 consolidated under a single contract with one or more low-rent projects being assisted under the United States Housing Act of 1937, and all income from any such project conveyed under this section may be commingled with funds of the project or projects with which it is consolidated and applied in accordance with the requirements of the consolidated contract and the provisions of section 10(c) of the said Act”.