sponsored a project with 348 dwelling units, and the Jewish War Veterans in New York City have built a project in Brooklyn with 264 units. The butchers' union in New York City sponsored the Harry Silver project which now takes care of 288 families. In Ohio, a young war veteran took the initiative in building 2 cooperative housing projects, I think serving about 80 or 90 families, as a public service undertaking. In Maryland, employees of the Naval Ordnance Laboratory are well on their way toward construction of a housing project. In Fresno, Calif., a prominent builder and a local cooperative group initiated projects at the same time They decided to unite their forces in one undertaking, and the Kavanaugh Manor project, there, has 124 very fine units. Another illustration is that initiated by the American Friends Service Committee in Philadelphia, which used section 213 financing to rehabilitate 52 housing units as a cooperative project. Perhaps the most interesting and surprising development under section 213 has been the growth of minority housing. The action of Congress in extending authorization of the Federal National Mortgage Association to make advance commitments for cooperative mortgages with a measure of priority for minority projects stimulated this new development. At the end of the last year, 45 projects designed primarily for Negro families secured mortgages through FHA and FNMA totaling $11.1 million. These will provide housing for 1,575 Negro families. Senator MAYBANK. Mr. Chairman, may I ask a question? Senator BENNETT. Yes. Senator MAYBANK. Would you tell me what they are? Would you mind furnishing them for the record? Mr. CAMPBELL. We could supply the committee with the names of the projects, and the number of families provided for the projects which were insured by FHA and FNMA, and also a list of those minority projects which have not been able to secure financing. (The information requested follows:) Section 213 projects in process-Minority group occupancy-Continued Senator MAYBANK. Mr. Chairman, I was sorry I was late and was Got here when the American Federation of Labor testified, and also that I missed a part of Mr. Campbell's testimony. I have been in South Carolina and the train was late coming back this morning. I notice you endorse the Housing Act of 1949. You believe the program should be restored. Mr. CAMPBELL. You mean the original program? Mr. CAMPBELL. That is right. Senator MAYBANK. Of course, that called for, as you said, 135,000 units. Mr. CAMPBELL. I should, to be technically correct, like to go into more detail; the goals, as I remember it, were to build about 800,000 units. Senator MAYBANK. Whatever amount the Appropriations Committee appropriated. One year it was 75,000 and another year 65,000. But do you think the 35,000 the President recommended is sufficient? Mr. CAMPBELL. No; I do not. Senator MAYBANK. But you do favor the amendment I have? Senator MAYBANK. Thank you. Mr. CAMPBELL. Thank you. Senator MAYBANK. Do you have any estimate in your own mind of what you think would be a sufficient number? Mr. CAMPBELL. In the field of public housing? Senator MAYBANK. Yes. Mr. CAMPBELL. We would like to see the original goals restored. Senator MAYBANK. I know that. There never was any original goal, unfortunately, except the 135,000 annual figure. We did the best we could over here on the Appropriations Committee. And I presume you are going to testify before the Independent Offices when we hold hearing on that bill? Mr. CAMPBELL. Yes; we hope to do that, too. Senator MAYBANK. Í am certain the American Federation of Labor will. Mr. CAMPBELL. Yes. The CHAIRMAN. Suppose you proceed, Mr. Campbell. Mr. CAMPBELL. Mr. Chairman, I would like to point out, for your particular attention, if I may, because of your particular interest in this paragraph that immediately preceded, and because of your role in seeing that at least part of the FNMA authorization was designated for minority groups, I think you would be interested in the statement I made in that previous paragraph. That at the end of last year 45 projects designed primarily for Negro families secured mortgages through FHA and FNMA totaling $11 million. These will provide housing for 1,575 Negro families. Unfortunately, the applications for advance commitments far exceeded the funds so earmarked under the legislation. When the funds were exhausted, 32 projects planned for occupancy by minority groups were unable to secure commitments. These were designed to take care of an additional 1,892 families with insured mortgage amounts of about $15 million. Here, again, I would like to give you some specific illustrations with four projects. The Dorey Miller project in New York City was built for occupancy by minority groups. It has 300 dwelling units with the average mortgage running $9,000. Down payments averaged $383 per dwelling unit, and the monthly carrying charges are $19 per room, including utilities. The Merrick Park Gardens, also in New York, has 116 units. Mortgages average $8,968, down payments were $889 and the monthly carrying charges averaged $20 per room. These were extremely interesting proof that good housing with reasonable down payments and reasonable monthly carrying charges can be made available to minority groups under this program. Even better illustrations are the Booker T. project in Maryland, just outside of the District. These are single-family homes averaging $10,000 mortgages with downpayments of $456 and monthly payments of $69.26 per month for the complete dwelling unit. When you go into a lower-cost area you will find another fine example in Kendall Homes at West Memphis, Ark. The CHAIRMAN. Will you yield just one moment there? Why is the downpayment so much lower in line 4 of page 7 there than it is in line 6 It is $383 on $9,000, and on the second line below it is. $889 on $8,968. Mr. CAMPBELL. That depends a great deal on the amount of the mortgage allowable and the amount of required equity after you get an estimate of replacement cost, at your mortgage value. The difference between your total mortgage and the total cost of the unit varies from project to project. It is somewhat determined by the ability of the builder to build under the FHA replacement cost estimate. This final illustration, in the Kendall Homes in West Memphis, Ark., the 67 units had an average mortgage of $6,450, with downpayments of $150 and monthly carrying charges of $48.50. This is in a low-cost area, and I don't want the committee to feel this could be applied in other places. But specifically, this proves that good, medium-cost housing can be made available for minority groups under the cooperative housing program. Now, specifically to the legislation: We are very happy to support the recommendations of the President's Advisory Committee, and the legislation following it, raising the mortgage limitations from $1,800 per room to $2,250 per room, and applying the $8,100 per family unit ceiling only to units which have four rooms or less. This change will make it possible to build in higher-cost areas where fireproof construction is essential and also to meet some of the other highercost area requirements. We are depending on FHA to see to it that the builders do not automatically raise their sights to this new level without providing dollar value. I don't mean the real estate sites when I say that. Another change recommended in section 119 of the bill permits the Commissioner to raise the amount per cooperative housing project to as high as $25 million if the mortgagor-cooperative-is regulated by Federal or State laws as to rents, charges, and methods of operation. We are critical of and firmly opposed to the change from "replacement cost" to "estimated value" as set forth in the bill before you. One of the important changes in the legislation affecting the cooperative housing program administered by the Federal Housing Administration under section 213 of the Housing Act of 1950 is a proposal made in both the Senate bill, S. 2938, and the House bill, H. R. 7839, now before Banking and Currency Committees of the House and Senate. The change appears in S. 2938, on page 13, section 119, line 10, which provides that the mortgage for a cooperative housing project shall |