those localities which exclude publicly-assisted housing for low- and moderateincome persons through restrictive land use practices. Federal support would thus not be available to subsidize land development in localities with overly restrictive, unreasonable, and discriminatory patterns of land use control.

The elimination through incentives of unreasonable and discriminatory re strictions on the use and development of land is essential if present efforts at technological progress in low-cost housing-such as "Operation Breakthrough”— are to be successful and if national housing goals, particularly for low- and moderate-income persons, are to be achieved.

S. 3025 also seeks to increase significantly State participation in the effort to rebuild the cities. The bill authorizes matching Federal grants to those States which establish State housing agencies, programs of assisting local tax abatment for low- and moderate-income persons and for the utilization of minority enterprises in connection with housing and urban development projects, and research and demonstration projects of new low-cost construction materials and techniques. Most significantly, the bill authorizes Federal grants and loans for the establishment of state land development agencies, similar to New York State's Urban Development Corporation.

To be eligible for this Federal assistance, state development agencies must be empowered to acquire, assemble, hold, plan and develop land for the establishment of new communities. Moreover, in order to attract industries and employees to such new developments, grants for commercial and industrial development purposes and for employee recruitment and training would be authorized.

S. 3025, in recognition of the fact that the direct activities of the Federal government significantly affect urban growth, would require the President to report on the establishment of a national policy on the location of Federal buildings and offices which will give consideration to social impact. Under present law. decisions on the location of Federal buildings and offices are made on cost grounds alone. However, in many cases, a move by a Federal agency to a particular urban area can contribute to its future stability, renewal and growth, and can create new job and housing opportunities.

All of the programs contained in the bill which I have introduced and which I have discussed in this statement seek to plan and guide metropolitan growth. We must aim at complete utilization of urban land and structures and to make land available for balanced housing and related facilities in all parts of our metropolitan areas.

One further provision of S. 3025 to which I would like to call the attention of the Subcommittee is the Federal grants for the "write down" of vacant or abandoned properties.

As has been testified to before various committees of both Houses of Congress and special study commissions, thousands of such units exist in our major cities. In New York City alone, it has been reported that there are 13,000 abandoned buildings, containing over 250.000 units. We cannot ignore these vacant buildings or the thousands of buildings throughout the Nation which cities have acquired through code enforcement, condemnation. tax proceedings, and otherwise. In most instances the cities do not have the available capital to make use of these properties, and they simply sit idle.

Accordingly, section 102 of S. 3025 authorizes Federal grants for the "write down" of such properties, provided they are turned over to a nonprofit cooperative or limited dividend institution which would rehabilitate and use them for low- and moderate-income housing. This section would also provide for incentive supplementary grants to localties to upgrade the neighborhoods in which such properties are located.

In addition to my bill, my colleague, Senator Goodell, has testified in detail about the abandonment problem and has indicated that he will introduce emer. gency legislation to try to deal with the severe problem existing in many cities. I support him in this effort and urge the Subcommittee to give every consideration to his proposals.

I also support E. 4087, introduced by Senator Brooke and cosponsored by Sena tor Goodell, which establishes a new authorization of $200 million to be available to localities for assistance programs covering neighborhoods which contain a substantial amount of abandoned properties.

Finally, I would like to endorse the concept of S. 3640, the Urban Growth and New Community Development Act of 1970, introduced by Senators Sparkman and Muskie. The purpose of the bill has been stated as the provision for development of a national urban growth policy for rational and orderly develop

ment of metropolitan areas ertes at TWIST 1 development and the erectv1 fler som

I would like to sunetic Neman, Ivaner and the fi tremendous work puting sugative 360 a di vener needed changes in existing je grams in the mers it smidrang the may FHA housing je grams.

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Great concern has been enjCAST HOW De armeone tarts in mulle nane ing. In New York City the me of the 20 peser of the iS SON É DIE LUČ 25 percent on all the que alone Sink will ur i Bar žinias 1TMing creased rent for their housing. Likeve the me me engine benman Th bill would exclude many WEINE BLS fame a STHET DHHHỦ ĐỂ bosing. The are also problems with the definition of meme in the all via bans the decar tion of the $30 ell LOWERS DI The per fuT AN THE D of the mec "medium income for the area" creates peoniems WILL PRETU 10 New Ties C if the area is limited to the City

The foregoing are site of the jeibens vLJCI DILTE 100g Pusad 17 New Ick City Housing officials and experts Further protiems nate bKART ÖZDEJMË TË the Subcommittee by the City brosing (flIS WIS DETE THAT Tested. I wozić hope that the Subcommitte WILD ETE semis pasigamin) E TI THE TOR ULTI of these problems in such a way as ti mne afer the supply (ć subsidized housing available in New York City and other Lizi (98: ETRES.

Finally, I would like to suggest fier the StV MILITA's Study and possitue in clusion in any housing legislati z repomed vet

language to the present section 236 di of the National Housing AZ

The change would provide authority under the 236 interest subsidy program for HUD to subsidize certain mortgage bar este imposed men menagers by state and local mortgage lending agencies which ensts are euented by bazÈS and other private lenders as "interest but which are designated as fees and charges" by state and local law. As a result of this desimativa these charges are not included in the mortgage.

I have prepared language which I believe would solve the problem and allow many state and local authorities to expand their basing programs I ask that this language be entered into the record at the conclusion of my statement for the Committee's consideration. Indications from HUD are that they will support an amendment such as I am here proposing but they have not reviewed the specific language of my draft.

CONCLUSION

I have attempted to detail the priority needs in the housing area which I feel are essential and I am hopeful that the Subcommittee will be able to produce a bill which will bring much needed help quickly to the housing industry. As I have stated before, it may be necessary to employ entirely new methods of providing housing for those who need it, but in the interim, it is most essential to increase the authorizations of the present programs and to seek to make those programs work in the most effective manner. We must not fail to meet the most essential task of any government-that of supplying decent housing for all of its citizens.

PROPOSED AMENDMENT TO SECTION 236(d) oF THE NATIONAL HOUSING ACT AS AMENDED (LANGUAGE PROPOSED TO BE ADDED IS SET IN ITALICS)

The Secretary may include in the payment to the mortgagee such amount, in addition to the amount computed under subsection (c), as he deems appropriate to reimburse the mortgagee for its expenses in handling the mortgage, which expenses, in the case of a project aided by a mortgage loan under a State or local program described in subsection (b), shall include all fees and other amounts due, on a uniform basis as among comparable mortgagors, from the mortgagor to the State or local agency mortgagee to meet reserve requirements and administrative and similar costs of such agency, but only to the extent that 48-279 0-70-pt. 2-22

such requirements or costs are not also recovered by such agency through interest charged under the mortgage loan.

The CHAIRMAN. Next we have Senator Williams, a member of this committee. Senator, I understand you wish to read a statement into the record. Please go ahead.

STATEMENT OF HARRISON A. WILLIAMS, JR., U.S. SENATOR FROM THE STATE OF NEW JERSEY

Senator WILLIAMS. Mr. Chairman, I appreciate the opportunity to appear here this morning to testify on a matter of vital concern for older Americans-the need for decent housing.

Today our Nation has a tremendous need for more suitable housing for all age groups. Particularly disadvantaged are older Americans who must spend proportionately more on housing than younger

persons.

Many now live in ramshackle homes or apartments that are cold in the winter and steaming hot in the summer. Some of these substandard units are structurally unsafe for human occupancy; others are completely beyond repair.

Housing costs now represent about 34 percent of the Bureau of Labor Statistics budget for a typical elderly couple; it is no wonder that many subsist in substandard units. Moreover, this housing problems are further complicated because of substantially reduced income in retirement, chronic health problems, limited mobility, and a sense of despair.

Yet, in our youth-oriented society, the elderly have been left behind under our housing programs. For example, only a very small percentage of FHA home mortgages include principal mortgagors who are 60 or older. From 1960 to 1968 only 1.1 percent of the mortgagors were 60 or over-about 37,000 out of 3.5 million.

In some cases, there even appears to be a predisposition against the construction of housing units for the aged. At the Senate Committee on Aging's hearing on "Sources of Community Support for Federal Programs Serving Older Americans," Reverend Everett Luther, of Phoenix, Ariz., told us:

The Phoenix office of HUD-FHA in the past year has had authority for over 700 units under the FHA program 236 and not a single unit of these 700 is available as housing for the elderly.

Unfortunately, this is not an isolated incident. Other witnesses expressed similar concern about long waiting lists for housing projects for the aged. In typical cases the ratio of applicants-to-units available was often 5-to-1.

Today, approximately 5 percent of our senior citizens-nearly 1 million individuals-live in public or private special, care facilities. But, about 95 percent-approximately 19 million persons-still live independently in their communities.

Most of these individuals want to continue to live an active life. They don't want to enter institutions prematurely. For these persons, institutionalization can be as debilitating as disease itself.

However, many are finding themselves in a "no man's land" with regard to housing. Prohibitive property taxes and rising maintenance costs have forced large numbers to sell their homes. Yet, it is becom

ing increasingly difficult to locate suitable alternative housing at rea sonable prices.

This emergency has now reached crisis proportions, and must be dealt with immediately.

For these reasons, I urge your favorable consideration of a bill I introduced to provide for a new Assistant Secretary in the Department of Housing and Urban Development-an Assistant Secretary for Housing for the Elderly-to administer and coordinate housing programs and related facilities for older Americans. In addition, this office would provide a central source and clearing house of informa tion with respect to housing for the elderly.

In the context of present HUD decisionmaking policy, the aged and sponsors of housing for older persons encounter two major prob. lems. First, there is the difficulty of dealing with a large bureaucracy which is often not as sympathetic to their needs as with other ago groups. Secondly, they must oftentimes cut through tangles of red tape to have their applications considered.

As a consequence, their housing needs are frequently overlooked or ignored.

To rectify this neglect, the elderly need someone in a high level position who will be an articulate spokesman for their problems. someone who will make sure that they are part of the action.

They also need in a very special way someone who will be interested in them and in their full participation all across the board in exist ing and new programs.

We on the Senate Committee on Aging are fully aware that there is an exceptionally qualified and devoted program adviser for Mons ing for the Elderly and Handicapped in HID at this time. Honest. she has only one assistant to handle about 296 2, yes * pat na well as numerous other responsibilities. Establanment of an No dat Secretary would help assure that more peronne, x5.5**** to zero in on the elderly's housing needs.

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Let there be no mistake, the Federal committment to housing for the elderly stands in serious jeopardy today. Evidence of this was provided in the recent apparent rescue of the successful section 202 housing for the elderly program.

Earlier this month, I introduced an amendment calling for $25 million for this direct loan program to prevent its total abandonment by the administration. Thanks to the capable leadership of the distinguished Senator from Rhode Island (Mr. Pastore) and the cosponsorship of the Senators from Vermont (Mr. Prouty) and Utah (Mr. Moss), funding in the HUD-Independent Office Conference bill was maintained for 202-at $10 million.

This action signifies that the Congress has once again expressed its intent that the 202 program be continued, and not be swept aside by an unworthy substitute the section 236 interest subsidy program.

But this last-ditch effort to save 202 is clear evidence that high-level attention must be given to the needs of the aged at HUD. This program was nearly lost, although it is probably the most effective program providing housing for older Americans.

My bill would also provide for the establishment of an intergovernmental task force-headed by the Assistant Secretary for Housing for the Elderly-to report on several possible means of helping States provide property tax relief to elderly homeowners. One possibility would be Federal income tax credits. Moreover, the task force would consider ways to make Federal assistance available to States providing full or partial exemptions from property taxes for persons whose taxes exceed a specified portion of their income.

In my own State of New Jersey, the voters will decide on November 2 whether they will raise the real property tax exemption from $80 to $160 for older homeowners with incomes under $5,000. This would certainly provide welcome relief for the aged.

However, it should be emphasized that New Jersey and other States can only go so far before their revenue sources are depleted. Other measures must also be considered-as authorized in this legislationto provide relief for overwhelmed elderly property owners and States struggling to make financial ends meet.

Another major problem affects those older persons who must leave their homes and move into nursing homes-not because they are ill but only because failing health prevents them from shopping for food or cooking. Many potential applicants for public housing fail to qualify for this very reason.

My bill would help make it easier for these individuals to live in a home, rather than in a nursing home. It would do this by broadening public housing coverage-not only to provide suitable residential living but also services for central dining facilities for the elderly poor who cannot cook their own meals. For these needy persons, this would provide a new alternative to institutionalization."

One of the tests of a great nation is the compassion and respect. it shows to its senior citizens. Today, too many elderly live empty and neglected lives in blighted, rundown areas.

Unfortunately, the existing administrative apparatus has not responded adequately to this pressing challenge.

But, with the approach offered by this bill, we can be more conent that more urgently needed housing will be built for the elderly