B-112140, OCTOBER 16, 1952, 32 COMP. GEN. 184

B-112140: Oct 16, 1952

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WHERE THE ENTIRE HOSPITAL BEING ASSISTED IS ATTRIBUTABLE TO THE IMPACT OF THE DEFENSE PROGRAM. WHERE ONLY PART OF THE HOSPITAL IS INTENDED TO MEET THE NEEDS RESULTING FROM THE DEFENSE PROGRAM. 1952: REFERENCE IS MADE TO LETTER OF OCTOBER 1. IT IS PROPOSED IN THE LETTER THAT. WHERE THE ENTIRE HOSPITAL BEING ASSISTED UNDER PUBLIC LAW 139 IS ATTRIBUTABLE TO THE IMPACT OF THE DEFENSE PROGRAM. WHERE ONLY PART OF THE HOSPITAL IS INTENDED TO MEET NEEDS RESULTING FROM THE DEFENSE PROGRAM. IT WAS EXPLAINED BY YOUR REPRESENTATIVE THAT. WHERE NO HOSPITAL FACILITIES ARE AVAILABLE IN COMMUNITIES WHICH CAN QUALIFY FOR A PUBLIC LAW 725 GRANT. IT IS NECESSARY TO PROVIDE HOSPITAL FACILITIES FOR BOTH THE NORMAL NEEDS OF THE COMMUNITIES AND THE NATIONAL DEFENSE.

B-112140, OCTOBER 16, 1952, 32 COMP. GEN. 184

HOSPITAL CONSTRUCTION - FEDERAL AID - GRANTS UNDER THE DEFENSE HOUSING AND COMMUNITY FACILITIES AND SERVICES ACT OF 1951 AND THE HOSPITAL SURVEY AND CONSTRUCTION ACT OF AUGUST 13, 1956, AS AMENDED UNDER THE DEFENSE HOUSING AND COMMUNITY FACILITIES AND SERVICES ACT OF 1951, AS AMENDED, PROVIDING GRANTS TO COMMUNITIES FOR HOSPITAL CONSTRUCTION, WHERE THE ENTIRE HOSPITAL BEING ASSISTED IS ATTRIBUTABLE TO THE IMPACT OF THE DEFENSE PROGRAM, THE GRANT MAY CONSIST OF THE ESTIMATED COST OF CONSTRUCTION OF THE FACILITY LESS THE AMOUNT OF THE GRANT UNDER THE HOSPITAL SURVEY AND CONSTRUCTION ACT OF AUGUST 13, 1946, AS AMENDED, TAKING INTO ACCOUNT OTHER RESOURCES AVAILABLE TO THE APPLICANT COMMUNITY. UNDER THE HOSPITAL SURVEY AND CONSTRUCTION ACT OF AUGUST 13, 1946, AS AMENDED, PROVIDING GRANTS TO COMMUNITIES FOR HOSPITAL CONSTRUCTION, WHERE ONLY PART OF THE HOSPITAL IS INTENDED TO MEET THE NEEDS RESULTING FROM THE DEFENSE PROGRAM, THE GRANT MAY BE THE " FEDERAL SHARE" OF THE COST OF THE ENTIRE FACILITY INCLUDING BOTH THE PART ATTRIBUTABLE TO DEFENSE NEEDS AND THE NONDEFENSE PORTION, AND THE GRANT UNDER THE DEFENSE HOUSING AND COMMUNITY FACILITIES AND SERVICES ACT OF 1951 MAY NOT EXCEED THE ESTIMATED COST OF THE PORTION OF THE FACILITY ATTRIBUTABLE TO THE NATIONAL DEFENSE ACTIVITIES.

COMPTROLLER GENERAL WARREN TO THE ADMINISTRATOR, FEDERAL SECURITY AGENCY, OCTOBER 16, 1952:

REFERENCE IS MADE TO LETTER OF OCTOBER 1, 1952, FROM THE ACTING ADMINISTRATOR, REQUESTING ADVICE AS TO WHETHER THE GENERAL ACCOUNTING OFFICE WOULD BE COMPELLED TO OBJECT TO THE METHOD PROPOSED IN THAT LETTER FOR MAKING GRANTS FOR HOSPITAL CONSTRUCTION UNDER BOTH THE DEFENSE HOUSING AND COMMUNITY FACILITIES AND SERVICES ACT OF 1951, PUBLIC LAW 139, APPROVED SEPTEMBER 1, 1951, 65 STAT. 293, AND THE HOSPITAL SURVEY AND CONSTRUCTION ACT, PUBLIC LAW 725, APPROVED AUGUST 13, 1946, 60 STAT. 1040, AS AMENDED, HEREINAFTER REFERRED TO AS PUBLIC LAW 139 AND PUBLIC LAW 725, RESPECTIVELY.

IT IS PROPOSED IN THE LETTER THAT, WHERE THE ENTIRE HOSPITAL BEING ASSISTED UNDER PUBLIC LAW 139 IS ATTRIBUTABLE TO THE IMPACT OF THE DEFENSE PROGRAM, THE GRANT UNDER PUBLIC LAW 139 WOULD CONSIST OF THE ESTIMATED COST OF CONSTRUCTION OF THE FACILITY LESS THE AMOUNT OF THE GRANT UNDER PUBLIC LAW 725 TAKING INTO ACCOUNT OTHER RESOURCES AVAILABLE TO THE APPLICANT COMMUNITY. WHERE ONLY PART OF THE HOSPITAL IS INTENDED TO MEET NEEDS RESULTING FROM THE DEFENSE PROGRAM, THE GRANT UNDER PUBLIC LAW 725 WOULD BE THE " FEDERAL SHARE" OF THE COST OF THE ENTIRE FACILITY INCLUDING BOTH THE PART ATTRIBUTABLE TO DEFENSE NEEDS AND THE NONDEFENSE PORTION, AND THE GRANT UNDER PUBLIC LAW 139 WOULD BE THE ESTIMATED COST OF THE DEFENSE PART BUT NOT IN EXCESS OF THE DIFFERENCE BETWEEN THE COST OF THE ENTIRE FACILITY AND THE PUBLIC LAW 725 GRANT.

AT AN INFORMAL CONFERENCE ARRANGED AT THE REQUEST OF REPRESENTATIVES OF YOUR AGENCY WITH REPRESENTATIVES OF THE GENERAL ACCOUNTING OFFICE, IT WAS EXPLAINED BY YOUR REPRESENTATIVE THAT, WHERE NO HOSPITAL FACILITIES ARE AVAILABLE IN COMMUNITIES WHICH CAN QUALIFY FOR A PUBLIC LAW 725 GRANT, IT IS NECESSARY TO PROVIDE HOSPITAL FACILITIES FOR BOTH THE NORMAL NEEDS OF THE COMMUNITIES AND THE NATIONAL DEFENSE; THAT, UNLESS SUCH BE DONE, A FACILITY ADEQUATE TO BOTH THE NORMAL AND DEFENSE NEEDS COULD NOT BE CONSTRUCTED, AND CONSEQUENTLY, TO A CERTAIN EXTENT THE PURPOSE OF PUBLIC LAW 139 WOULD BE DEFEATED.

SECTION 304, PUBLIC LAW 139, PROVIDES AS FOLLOWS:

IN FURTHERANCE OF THE PURPOSES OF THIS TITLE AND SUBJECT TO THE PROVISIONS HEREOF, THE ADMINISTRATOR MAY MAKE LOANS OR GRANTS, OR OTHER PAYMENTS, TO PUBLIC AND NONPROFIT AGENCIES FOR THE PROVISION, OR FOR THE OPERATION AND MAINTENANCE, OF COMMUNITY FACILITIES AND EQUIPMENT THEREFOR, OR FOR THE PROVISION OF COMMUNITY SERVICES, UPON SUCH TERMS AND IN SUCH AMOUNTS AS THE ADMINISTRATOR MAY CONSIDER TO BE IN THE PUBLIC INTEREST: PROVIDED, THAT GRANTS UNDER THIS TITLE TO ANY LOCAL AGENCY FOR HOSPITAL CONSTRUCTION MAY BE MADE ONLY AFTER SUCH ACTION BY THE LOCAL AGENCY TO SECURE ASSISTANCE UNDER PUBLIC LAW 725, SEVENTY-NINTH CONGRESS, APPROVED AUGUST 13, 1946, AS AMENDED, OR PUBLIC LAW 380, EIGHTY-FIRST CONGRESS, APPROVED OCTOBER 25, 1949, AS IS DETERMINED TO BE REASONABLE UNDER THE CIRCUMSTANCES, AND ONLY TO THE EXTENT THAT THE REQUIRED ASSISTANCE IS NOT AVAILABLE TO SUCH LOCAL AGENCY UNDER SAID PUBLIC LAW 725, OR SAID PUBLIC LAW 380, AS THE CASE MAY BE: PROVIDED FURTHER, THAT GRANTS OR PAYMENTS FOR THE PROVISION, OR FOR THE MAINTENANCE AND OPERATION, OF COMMUNITY FACILITIES OR SERVICES UNDER THIS SECTION SHALL NOT EXCEED THE PORTION OF THE COST OF THE PROVISION, OR THE MAINTENANCE AND OPERATION, OF SUCH FACILITIES OR SERVICES WHICH THE ADMINISTRATOR ESTIMATES TO BE ATTRIBUTABLE TO THE NATIONAL DEFENSE ACTIVITIES IN THE AREA AND NOT TO BE RECOVERED BY THE PUBLIC OR NONPROFIT AGENCY FROM OTHER SOURCES, INCLUDING PAYMENTS BY THE UNITED STATES UNDER ANY OTHER PROVISION OF THIS ACT OR ANY OTHER LAW: AND PROVIDED FURTHER, THAT ANY SUCH CONTINUING GRANT OR PAYMENT SHALL BE REEXAMINED AND ADJUSTED ANNUALLY UPON THE BASIS OF THE ABILITY OF THE AGENCY TO BEAR A GREATER PORTION OF THE COST OF SUCH MAINTENANCE, OPERATION, OR SERVICES AS A RESULT OF INCREASED REVENUES MADE POSSIBLE BY SUCH FACILITY OR BY SUCH DEFENSE ACTIVITIES.

THE FOREGOING PROVISION OF LAW AND ITS LEGISLATIVE HISTORY REQUIRE THAT ALL AVAILABLE ASSISTANCE UNDER PUBLIC LAW 725 AND OTHER FINANCIAL RESOURCES OF THE COMMUNITY MUST BE MADE AVAILABLE BEFORE RECOURSE MAY BE HAD TO LOANS OR GRANTS UNDER PUBLIC LAW 139. AS THESE CONDITIONS WILL BE MET UNDER THE METHOD PROPOSED AND AS IT IS UNDERSTOOD THAT THE OTHER LIMITATIONS IN SECTION 304 OF PUBLIC LAW 139--- REQUIRING CONSIDERATION OF OTHER RESOURCES OF THE COMMUNITY--- WILL BE COMPLIED WITH, THE GENERAL ACCOUNTING OFFICE WILL NOT OBJECT THERETO, PROVIDED THAT THE PUBLIC LAW 139 GRANT DOES NOT EXCEED THE COST OF THE PORTION OF THE FACILITIES ATTRIBUTABLE TO THE NATIONAL DEFENSE ACTIVITIES.