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1 alleys, parks, or other public areas. The amount of any such

grant shall not exceed 663 per centum of the cost of carry3

ing out the project for which the grant is made (or 75 4

per centum of such cost in the case of a project located in 5

an area which at the time the grant is made is designated 6

a redevelopment area under the Area Development Act or 7 the Public Works and Economic Development Act of 1965). 8 No grant shall be made under this section for any project 9 unless the Secretary determines that the project is designed 10

and needed for the prevention or reduction of crime on 11

thoroughfares or other public areas in the locality.” 12

(b) Section 701 of such Act is amended by striking out 13 "and (3)” and inserting in lieu thereof “ (3)", and by 14 striking out the period and inserting in lieu thereof “, and 15

(4) to provide lighting facilities for streets, alleys, parks, 16

or other public areas in order to prevent or reduce the oc17

currence of crime on such thoroughfares or in such areas.” 18

(c) Section 708 of such Act (as redesignated by sub19 section (a) of this section) is amended by striking out “and 20 703” and inserting in lieu thereof “, 703, and 705”. 21

(d) Section 709 (a) of such Act (as redesignated by 22 subsection (a) of this section) is amended by adding at the 23 end thereof a new sentence as follows: "In addition, there

24 is authorized to be appropriated for grants under section 705

not to exceed $7,500,000 for any fiscal year commencing

25

26 after June 30, 1969.".

THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT,

Washington, D.C., July 21, 1970. Hon. JOHN SPARKMAN, Chairman, Committee on Banking and Currency, U.S. Senate, Washington, D.C.

DEAR MR. CHAIRMAN: This is in further reply to your request for the views of this Department on S. 3786, a bill "To amend title VII of the Housing and Urban Development Act of 1965 to authorize financial assistance for the development and improvement of street lighting facilities.''

This Department recognizes the importance of good street lighting as a deterrent to crime. It has been providing assistance for such lighting in conjunction with its Urban Renewal, Code Enforcement, Open Space, and Urban Beautification programs, and has consistently encouraged street lighting projects as significant elements in these programs. We are thus in favor of the general objectives of this bill. We do not believe, however, that establishing a separate Federal grant program limited solely to better urban street lighting would be a desirable approach to the problem to which this bill addresses itself.

The Office of Management and Budget has advised that there is no objection to the presentation of this report from the standpoint of the Administration's program Sincerely,

GEORGE ROMNEY.

48-279 0 - 70 - pt. 2 - 46

918T CONGRESS

20 SESSION

S. 3824

IN THE SENATE OF THE UNITED STATES

May 12, 1970 Mr. Gravel introduced the following bill; which was read twice and referred

to the Committee on Banking and Currency

A BILL

To amend section 702 of the Housing and Urban Development

Act of 1965 to assist further in the provision of basic water and sewer facilities in those communities where the need is

most acute.

1

Be it enacted by the Senate and House of Representa

2 tires of the United States of America in Congress assembled,

3 That the first proviso in section 702 (b) of the Housing

4 and Urban Development Act of 1965 is amended

5

(1) by striking out “ten” and inserting in lieu

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(2) by striking out "which is situated within a

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THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, D. C.

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This is in further reply to your request for the views of this Department on s. 3824, a bill which would broaden the eligibility for 90 percent Federal grants for basic water and sewer facilities under section 702(b) of the Housing, and Urban Development Act of 1965.

S. 3824 would raise from 10,000 to 15,000 the population limit on communities eligible for 90 percent grants under the section 702 program of assistance for basic water or sewer facilities. It would also remove the existing requirement that these communities be located within a metropolitan area.

This Department recognizes that statutory limitations on 90 percent grants may sometimes operate to produce inequities among, localities which have many similar problems and characteristics. The limitation of grants to communities within metropolitan areas is particularly susceptible to the criticism of producing arbitrary results.

As against these considerations, however, must be balanced the problem of distributing the 90 percent funds among the much greater number of communities which the bill would make eligible for these grants. Also, if more funds are to be used for 90 percent grants, the total amount available under

the program would be more rapidly depleted, with the result that still fewer of the communities that apply could receive even the regular 50 percent grants which this program provides. Furthermore, the attractiveness of the 90 percent assistance combined with the broadening of eligibility for this assistance to communities far removed from any major population center is likely to result in sharply increased pressures for use of limited program funds in localities whose long term economic and employment prospects, and thus their capacity for holding the population to be served, may be very weak notwithstanding the assistance provided.

In view of these problems, we do not favor enactment of S. 3824. In our opinion, the bill cannot be considered simply in terms of removing inequities. It involves, rather, important issues for the program as a whole, its nature and purpose, the funding levels at which it should operate, and the number and kind of communities to participate. At the very least, such an extension would seem to call for additional statutory guidance which the bill does not provide as to the criteria to be used in distributing available funds.

The Office of Management and Budget has advised that there is no objection to the presentation of this report from the standpoint of the Administration's program.

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