posed of to private developers on a competitive basis. We also believe that, to the maximum extent practicable, land in the project area should be sold or leased to local developers.

We believe that the inordinate timelag between approval of a project and its redevelopment is attributable to a great extent to the fact that big, nationally known developers with coast-to-coast enterprises take over the job with considerable publicity and from then on the public gets little more than press releases. We would like to see the local developers who have a stake in the renewal of their communities play a more active role in urban renewal. The statutory language for this proposal is found in appendix C.

Local governing body approval of public housing site

We urge amendment of the U.S. Housing Act of 1937 to require approval by the local governing body of sites for public housing prior to the execution of any loan contract, including a preliminary loan contract.

Under present law, the only control which can be exercised by local government over the application for a preliminary loan contract by the local housing authority is the statutory requirement that it approve the application. Preliminary loans are a legal obligation of the local housing authority and must be repaid even if the project is not completed. This fact tends, in our opinion, to pressure local government into signing a cooperation agreement and later for annual contributions for a particular project even though it may not be satisfied with the site of the project. The proposed amendment would also keep the Public Housing Administration from becoming involved in controversies over a site selection which can happen under present law.

The requirement imposed by the proposed amendment (see app. D) would alleviate these problems and insure that a specific site had been selected and approved prior to entering into any legal obligation with the Federal Government.

Expenses in connection with private organizations

We recommend that a statutory prohibition be enacted to prevent employees of local housing or urban renewal agencies from charging membership fees in private professional societies, and travel expenses in connection with the activities of such societies, to the cost of any public housing, urban renewal, or other HHFA-assisted projects. The General Accounting Office has made abuses of this kind abundantly clear. In her testimony before the House Independent Offices Appropriations Subcommittee in March 1963, Public Housing Commissioner Marie C. McGuire outlined the steps which were being taken within the PHA to prevent recurrence of this practice among employees of local housing authorities. We believe that the prohibition against such use of Federal funds should be made statutory, and urge that the subcommittee include this amendment in the bill which it reports. (Language of the proposed amendment is contained in app. E.)

APPENDIX A

PROPOSED AMENDMENT TO S. 2468

TERMINATION OF AUTHORITY TO MAKE GRANTS FOR URBAN RENEWAL PROJECTS INVOLVING NONRESIDENTIAL REDEVELOPMENT

-.

SEC. (a) Section 102 of the Housing Act of 1949 is amended by adding at the end thereof the following new subsection :

"(h) In connection with any project on land which is to be redeveloped for nonresidential and nonpublic use, the Administrator may make loans to municipalities or local public agencies. Such loans shall be in such amounts not exceeding two-thirds of the aggregate net project cost of the projects, be secured in such manner, and be repaid within such period (not exceeding ten years from the date of the obligations evidencing the loans), as may be deemed advisable by the Administrator. Such loans shall bear interest at such rate (not less than the going Federal rate plus one-half of 1 per centum) as the Administrator may specify; except that the interest on such loans shall not be payable prior to the date on which the land involved is sold or otherwise disposed of by the municipality or local public agency for redevelopment. The provisions of this section which are applicable to loans made pursuant to subsections (a) and (b) shall apply to loans made pursuant to this subsection to the extent not inconsistent with the provisions of this subsection."

(b) Section 103 (a) (1) of such Act is amended by adding before the period at the end thereof the following: ": And provided further, That the Administrator shall not make any contract for capital grant with respect to a project the reuse of which will be predominantly nonresidential and nonpublic, except as specifically provided in clause (2) of the next to last paragraph of section 110 (c)".

(c) The next to last paragraph of section 110 (c) of such Act is amended to read as follows:

"Financial assistance shall not be extended under this title with respect to any urban renewal area which is not predominantly residential in character and which, under the urban renewal plan therefor, is not to be redeveloped for predominantly residential or public uses; except that (1) if the governing body of the local public agency determines that the redevelopment of such area for predominantly nonresidential or nonpublic uses is necessary for the proper development of the community, the Administrator may extend financial assistance under section 102 (h) for an urban renewal project in such area providing such redevelopment, and (2) if the governing body of the local public agency certifies to the Administrator, and the Administrator affirmatively finds, that all residential redevelopment which is necessary or appropriate in the community (including but not limited to the residential redevelopment necessary to carry out the workable program in full) has been completed, and that specific additional nonresidential redevelopment is necessary for the proper development of the community, the Administrator may extend financial assistance under section 102 (h), or under section 103 (a) (but only within the limits imposed by this paragraph as in effect immediately prior to the enactment of this Housing Act of 1964), for a project in such area providing such additional nonresidential redevelopment."

APPENDIX B

PROPOSED AMENDMENT TO S. 2468

LOCAL RESPONSIBILITIES UNDER URBAN RENEWAL PROGRAM

SEC. -. (a) Clause (1) of section 101 (c) of the Housing Act of 1949 is amended by inserting after "suitable living environment for adequate family life" the following: ", as well as a statement of anticipated zoning changes in the community which would serve to assist displaced business concerns in making arrangements for their relocation".

(b) Clause (2) of section 101 (c) of such Act is amended by striking out "determines that such program" and inserting in lieu thereof the following: "determines that the locality has adequately identified the goals to be achieved with respect to each element of the program and has committed itself to the improvements (with respect to each such element) that will be made during the ensuing year, and that the program as submitted".

(c) Section 101 (c) of such Act is further amended by adding at the end thereof the following new sentence: "Upon his annual review of the workable program of the locality, if the Administrator finds that such locality has not fulfilled its commitments with regard to specific improvements under clause (2) of the preceding sentence, no further assistance shall be provided or contracted for with respect to activities under this title in such locality until such commitments have been fulfilled to his satisfaction."

(d) Section 101 (d) of such Act is amended by striking out "to assist them in the preparation of a workable program" and inserting in lieu thereof the following: "to assist them in the development of self-help programs for community improvement (including rehabilitation projects which require no assistance under this title as well as self-liquidating redevelopment projects) and in the preparation of a workable program”.

(e) Section 101 of such Act is further amended by adding at the end thereof the following new subsection:

"(e) Each local public agency, as a condition of the approval of renewal of the workable program of the locality which it represents, shall as soon as practicable after the enactment of this subsection initiate and carry out a study of the property assessment system in such locality for the purpose of determining (1) the effect of the workable program and urban renewal project improvements on property values in such locality, and (2) the extent to which real estate taxation can be used as an incentive to improve properties and a means of financing local urban renewal activities."

(f) Section 101 of such Act is further amended by adding at the end thereof (after the new subsection added by subsection (e) of this section) the following new subsection:

"(f) No contract shall be entered into for any loan or capital grant under this title, after the date of the enactment of the Housing and Neighborhood Rehabilitation Act of 1964, unless the Administrator determines that the project with respect to which such loan or grant is to be made has been approved by majority vote in a referendum of all the residents of the community in which such project would be located. Such referendum shall be held under the direction and supervision of the governing body of such community, which shall take such steps as may be necessary to insure that all residents of such community are furnished with full and complete information with respect to such project."

(g) Section 101 of such Act is further amended by adding at the end thereof (after the new subsection added by subsection (f) of this section) the following new subsection:

"(g) It is the policy of the Congress that localities desiring to undertake urban renewal or similar projects should be encouraged to take all possible steps to obtain the necessary financing from State and local sources, both public and private. In the case of a locality which will permit increases in tax revenues resulting from the redevelopment of an urban renewal area to be pledged for the payment of principal and interest charges on obligations issued for the financing of the project, or which is otherwise found to have taken all possible steps to obtain State or local financing as described in the preceding sentence, the Administrator shall give priority and particular consideration to an application for assistance under this title to provide any additonal funds which may be necessary for the project."

APPENDIX C

PROPOSED AMENDMENT TO S. 2468

COMPETITIVE BIDDING; PREFERENCE FOR LOCAL REDEVELOPERS

SEC. (a) Section 105(b) of the Housing Act of 1949 is amended by adding at the end thereof the following new sentence: "To the maximum extent practicable, any sale or lease by the local public agency of real property acquired or held by it in connection with the project shall be made to the highest responsible bidder after public competition as to the price or rent to be paid therefor by the person or persons submitting offers to such agency to purchase or lease such property."

(b) Section 105(e) of such Act is amended by adding at the end thereof the following new sentence: "To the maximum extent practicable, real property acquired or held by the local public agency in connection with the project shall be sold or leased to redevelopers having their principal offices or places of business in the community where such project is located."

SEC.

APPENDIX D

PROPOSED AMENDMENT TO S. 2468

LOCAL APPROVAL OF LOW-RENT HOUSING SITES

Section 10 of the United States Housing Act of 1937 is amended by adding at the end thereof the following new subsection:

"(n) Notwithstanding any other provision of law, the Authority shall not make any contract for loans (including a contract for preliminary loan) or for annual contributions or capital grants under this Act with respect to any low-rent housing project initiated after the date of the enactment of this subsection unless the governing body of the locality involved has approved the site or sites on which such project is to be located."

APPENDIX E

PROPOSED AMENDMENT TO S. 2468

CERTAIN EXPENSES OF LOCAL AGENCIES IN CONNECTION WITH MEMBERSHIP IN PRIVATE URBAN RENEWAL AND HOUSING ORGANIZATIONS

SEC.

Notwithstanding any other provision of law, no amount expended by a local public agency (as defined in section 110(h) of the Housing Act of 1949), 30-944 0-64 -39

a public housing agency (as defined in section 2(11) of the United States Housing Act of 1937), or any other State or local agency performing functions under a program administered by the Housing and Home Finance Agency or any of its constituent agencies, or by any officer or employee of any such agency, for

(1) dues or fees in connection with membership in a private organization operating in the field of urban renewal or housing or in a related field,

or

(2) travel or subsistence in connection with attendance at a meeting, convention, or conference of a nsuch organization except in the case of an individual who is a scheduled speaker or has formal official duties to perform at such meeting, convention, or conference,

shall be included in the cost of or otherwise charged to any urban renewal projet, low-rent housing project, or other activity with respect to which assistance is made available by the Housing and Home Finance Agency or any of its constituent agencies.

Senator CLARK. The next witness is Mr. J. Roy Carroll, Jr., president of the American Institute of Architects.

I would like to announce at the request of Senator Sparkman that a bill introduced yesterday on behalf of Senator Edmondson, S. 2524, which has been referred to the subcommittee and which deals with amendments to the Housing Act of 1955 dealing with national defense housing, is also the subject of these hearings.

Mr. Carroll, we are happy to have you with us. We know you both.

STATEMENT OF J. ROY CARROLL, JR., FAIA, FOR THE AMERICAN INSTITUTE OF ARCHITECTS, ACCOMPANIED BY JOHN DAWSON, WASHINGTON, D.C.

Mr. CARROLL. Senator Clark, this is Mr. John Dawson of our staff in Washington.

Senator CLARK. Nice to have you, Mr. Dawson.

I suggest, due to the lateness of the hour, that you allow me to put the entire statement on behalf of the American Institute for Architects into the record and then, since I am the only member of the subcommittee left, you just make a summary for my information.

Mr. CARROLL. Very good.

I have deleted a number of things here which I trust will be in the record.

My name is J. Roy Carroll, Jr., and I am a practicing architect in the firm of Carroll, Grisdale, and Van Alen, with an office in the city of Philadelphia. I appear here today in my official capacity as president of the American Institute of Architects for the purpose of supporting legislation which would enact the concepts expressed by President Johnson in his housing message to Congress.

Our interest in the legislation before you goes back some years and is prompted by our awareness of the complexity and scope of housing and community development problems and by the dedication of the architectural profession to fulfilling its responsibilities toward providing a proper physical environment for the people of this Nation. The American Institute of Architects, now in its 107th year, is a professional society composed of over 16,000 corporate members and several thousand more associate members assigned to 146 chapters in all of the States of the Union. This membership includes the leading practitioners and teachers of architecture. These architects are responsible for translating the housing needs of society into functional, economical, and harmonious structures.

The special competence of our profession lies in the design of buildings and communities. The focal point at which these skills are applied today is the urban community. The design of the community as a whole, its neighborhoods, and the structures and facilities they contain is the primary concern of the architectural profession. It is not a design problem which is solved in lonely isolation by an individual, for the architect is a key member of a building team and works in close collaboration with planners, engineers, developers, and builders. The client of this team is the community, and the community, in turn, can only achieve its needs with the cooperation of government on all levels. The Federal Government accepted its responsibility for this task in a series of housing and renewal acts dating back approximately 30 years.

The architect, through his training and experience, has a familiar grasp of the techniques by which the community can be improved and, more important, the techniques which will serve to minimize errors which would affect future generations. Many chapters of the American Institute of Architects have, in fact, accepted the role of leadership in their respective communities, and have made substantial contributions in organizing community action on such projects as downtown redevelopment and comprehensive planning of the community and the region. Toward these ends they are devoting their talents and thousands of man-hours to the public interest.

We have demonstrated our support of a proposed White House Conference on Urban Problems, which the late President, John F. Kennedy, has sought to organize. We are still hopeful that such a Conference can be realized.

The profession, however, in discharging its responsibilities to society, must operate within a governmental and socioeconomic framework which at present does not have the full capabilities to solve the myriad of problems which relate to housing and community development. Some building codes are obsolete, some zoning ordinances are arbitrary, and taxation on property in some cases tends to penalize design solutions which benefit the community the most. These are but a few of the factors which contribute to the ugliness and wastefulness which engulf our communities. Citizens at all levels, including the architectural profession, must share the responsibility for this dilemma.

The problems of community development are becoming progressively more acute as we continue to ignore the virutes of sound and orderly planning. As the cities continue to sprawl, they continue to traverse more and more political entities, few of which has the authority or perception to seek solutions to the large metropolitan complex. The American Institute of Architects has dedicated itself to building better American communities and to working with Federal, State, and local governments in every possible way to bring this about.

I would like to say just a word about new communities.

It is therefore of singular significance to the architectural profession that the subject legislation proposes the "new community" concept as recommended by President Johnson in his housing message to Congress. This concept represents the recognition of the vital need for planning the future growth of the populated urban areas which heretofore have been left to sprawl and grow with little or no attempt to anticipate the consequences which we are realizing today.