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Annual Gross Income, by Type of Family, Under Section 235 Program, Page
Fourth Quarter, 1969.-

723

Annual Net Cash Flow as a Percentage of Net Rent Received by Periods of

Tax Arrearage, New York City, 1967...

868

Annual Net Contribution to Debt Depreciation and Profit as a Percentage

of Net Rent Received by Periods of Tax Arrearage, New York City,

1967..

867

Annual Net Taxable Income as a Percentage of Net Rent Received by

Periods of Tax Arrearage, New York City, 1967..

869

Annual Repairs as a Percentage of Net Rent Received (1967) by Periods of

Tax Arrearage, New York City, 1967..

867

Application of 1970 Legislation's Flexible Cost Ceilings (Single-Family

Units)

90

Assets, By Type of Family, Under Section 235 Program, Fourth Quarter,
1969..

723
Backlog of section 236 applications by State, as of July 24, 1970.--

1834
Basic Plumbing Materials, Wholesale Cost Study

679
Between 1960 and 1968, The Inventory of Undermaintained Housing Grew
by 136,000 Units (graph)---

918
Breakdown of Construction Costs in New York City-10 Trades Hourly
Wage Averages, 1965–71.---

499

Calculation of Subsidy Needed in All U.S. Metro Areas, Renters Below

Social Security “Economy” Standard, 1960...

1048

Child Lead Paint Poisoning 1931-1967..

284

Childhood Lead Poisoning Estimated Cost Factors—Baltimore, 1969. 530

City Worker Earnings, Consumer Prices, and Public Housing Operating

Costs, 1965–68-

1060

Comparison of Housing Costs Under Various Programs (graph) -

1046
Comparison of Proposed Income Limits Based on 80 Percent of Median
Incomes With Section 235–236 Regular Income Limits..

87
Comparison of Proposed Income Limits Based on 80 Percent of Median
Incomes With Section 235–236 Regular Limits (Summary Sheet)-

86
Comparison of Proposed Income Limits Based on Median Incomes With
Section 235-236 Exception Limits (Summary Sheet)

88

Comparison of Proposed Income Limits With Section 235–236 Exception

Limits.

89

Comparison of Rent Under 1970 Legislation With Present Rents (as
Adjusted for Brooke) by Income Groups

93
Comparative Hourly Wage Rates Including Fringe Benefits in Construc-

tion Trades in New York and Other Large Cities as of July 1, 1970.--- 489
Construction Costs in New York City—10 Trades Hourly Wage Averages,
1965–71...

510

Detailed Cross Reference Table Showing How Provisions of Existing Law

Are Adopted, Changed or Omitted From Proposed Title V of Housing

and Urban Development Act of 1970.-

211-223

Detailed Cross Reference Table Showing Provisions of National Housing

Act Adopted, Changed, or Omitted From Proposed Mortgage Credit

Assistance Act...

128–196

Detailed Cross Reference Table Showing Present Provisions of the United

States Housing Act of 1937 and the Proposed 1970 Provisions.-- 197-203
Detailed Cross Reference Table Showing How Provisions of Title VII of the

Housing Act of 1961 Were Adopted, Changed, or Omitted From Proposed
Section 401 of Housing and Urban Development Act of 1970-

204-210
Effect of Adoption of HUD Rent Formula Upon Nonwelfare Tenants in
Federally Assisted Public Housing in New York City..

511
Effect of 1970 Legislation on Present Rents (as Adjusted for Brooke) of
Families in Public Housing by Total Family Income.

94

Examples of how costs increased during processing-

499

Examples of Recent FHA Projects Exceeding Statutory Cost Maximums.- 499

FAIR Plans-Report of operations.-

246–249

Federally Aided Projects—Nonwelfare Tenants-Comparison of Rent

Under 1970 Legislation With Present Rents (as Adjusted for Brooke) by

Income Groups..

512

Foreclosures of Apartment Houses in New York City --

920

Gross Annual Income of Families of Whom Assistance Payments Are Made

Under Sections 235 and 236...

718

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Page
498
498

799

472

919
1061

723

724

General Trend of Mortgage Increases Over Past 5 Years (Cumulative List

of New York City 221 (d)(3) and 236 Projects With Firm Commitment
Through May 31, 1970):

Fireproof (Reinforced and Concrete Plank) -

Semi-Fireproof ...
Illustrative Cash Flow Statement: Inner-city Row Houses Held Free and

Clear, Baltimore, 1968.-
Local Government Grant Applications for Water and Sewer Assistance Not

Funded by Department of Urban Development -
Maintenance and Operating Costs Have Risen Much Faster Than Con-

trolled Rents (graph).
Median Incomes, All U.S. Families and Families in Public Housing-
Monthly Adjusted Income, By Type of family, Under Section 235 Pro-

gram, Fourth Quarter, 1969

Monthly Mortgagor's Share, By Type of Family, Under Section 235 Pro-

gram, Fourth Quarter, 1969.-

Monthly Rent Controlled Maximums per Apartment by Periods of Tax

Arrearage, New York City, 1967 -

Monthly Rent Controlled Maximums per Thousand Square Feet by

Periods of Tax Arrearage, New York City, 1967-

Monthly Subsidy, By Type of Family, Under Section 235 Program, Fourth

Quarter, 1969

Mortgage amount by type of family, under section 235 program, fourth

quarter, 1969.-

Normal Operating Reserve Requirements Compared With Actual Re-

serve Balance Available For Federally Assisted Public Housing in New

York City.

114,000 Housing Units Have Been Abandoned or Withdrawn From the

Market Since 1965 (graph) -

Percentage Increases Since 1952 In Tenant Incomes, Rent Charged, and

Routine Operating Expenses in Federally Assisted Public Housing in

New York City --

Planning Requirements for Growth Policy (chart) -

Profile of Homeowners Under Section 235 Mortgage Subsidy Program,

Fourth Quarter, 1969.-

Proposed Funding Authorization for Major HUD Assisted Programs.

Public Housing Statistical Data, 1970-

Real Estate Tax Delinquency in Relation to Rent Reduction by Building

Category, New York City, 1968.

Rent Change (1955–59) as a Percentage of 1955 Rent by Periods of Tax

Arrearage, New York City, 1967 -

Rent Change (1959–63) as a Percentage of 1959 Rents by Periods of Tax

Arrearage, New York City, 1967 - -

Rent Change (1963-67) as a Percentage of 1963 Rent by Periods of Tax

Arrearage, New York City, 1967 -

Rent Expenditure Patterns of Renter Families Gross Rents as a Percentage

of Income..

Sale Price of Assisted Homes Insured Under Section 235(i) -
Selected Examples of How Proposed Changes in Exception Limits for the

FHA 236 Program Would Operate for a Family of Four or Five.

Size of Family, By Type of Family, Under Section 235 Program, Fourth

Quarter, 1969

Subsidized Homeownership Programs, Section 235, Existing

Formula -

Subsidized Homeownership Programs, Section 402, Special Formula.

Subsidized Homeownership Programs, Section 402, Standard Formula

(20–25 percent)

Subsidized Rental Program-A Hypothetical Aggregated Project, Special

Formula

Subsidized Rental Program, Section 236, Existing Formula-
Subsidized Rental Program, Section 502, Special Formula
Subsidized Rental Program, Section 502, Special Formula for Use in

Special Aggregated Projects.
Subsidized Rental Program, Section 502, Standard Formula -
Summary of Changes in Present Rent of Families in Public Housing (as

Adjusted for Brooke) Under 1970 Legislation by Dollar Amount
Summary of Changes in Present Rent of Families in Public Housing (as

Adjusted for Brooke) Under 1970 Legislation by Total Family Income..

510

725

500

84

80
81

83
79

92

92
Page 1247

864

862

858

Summary of Results of ABA Survey of Commercial Bank Residential

Mortgage Activity ---
Tax Delinquencies and Vacant Buildings—Monthly Rent Controlled

Maximums per Room by Periods of Tax Arrearage, New York City,

1967. Tax Delinquencies and Vacant Buildings—Number of Open Violations

By Tax Delinquent Versus Nontax Delinquent Structures, New York

City, 1967...
Tax Delinquencies and Vacant Buildings—Periods of Tax Arrearage for

Two or More Periods.-.
Tax Delinquencies and Vacant Buildings-Tax Arrearage by Borough,

By Building Category, New York City, 1968...
Tax Delinquencies and Vacant Buildings—Summary of in REM Buildings-
Tax Delinquencies—Summary of Vacant Buildings.
Tax Delinquency-Interior Maintenance Rating by Tax Delinquent Versus

Nontax Delinquent Structures -
Tax Delinquency-Number of Structures by Periods of Tax Arrearage

by Welfare Tenantry, New York City, 1968.
Trend of Tenant Incomes and Wages of Authority Employees in Federally

Assisted Public Housing in New York City -
United Nations Development Corp. Projected Land Acquisition and Con-

struction Costs, July 1970.

860 877 876

861

863

509

1369

HOUSING AND URBAN DEVELOPMENT LEGISLATION

OF 1970

FRIDAY, JULY 24, 1970

U.S. SENATE,
COMMITTEE ON BANKING AND CURRENCY,
SUBCOMMITTEE ON HOUSING AND URBAN AFFAIRS,

Washington, D.C. The subcommittee met, pursuant to recess, at 10:07 a.m., in room 5302, New Senate Office Building, Senator Edward W. Brooke presiding.

Senator BROOKE. The meeting of the Subcommittee on Housing and Urban Affairs will come to order.

In the absence of our chairman, the distinguished Senator from Ilabama, Mr. Sparkman, I will preside this morning. I have a statement which I will make and then immediately call witnesses according to the list which has been presented to you.

I am very pleased that this committee has seen fit to hold hearings on the crisis in public housing and the problems encountered in seeking proper implementation of the Brooke amendment. I am also pleased that Senators Cranston and Goodell have joined with me in the introduction of Senate bill 4086 which is designed to clarify the legislative framework in which this program is to be executed.

Last year, Senator Sparkman and I introduced legislation designed to alleviate intolerable conditions which have been allowed to exist far too long in public housing projects throughout the Nation. The Sparkman amendment made it clear that Federal assistance to local public housing authorities was not limited to debt service requirements, but could be extended to cover operating needs as well.

The Brooke amendment authorized the Department of Housing and Urban Development to contract with local housing authorities to make payments for three purposes :

First, to eliminate operating deficits which existed in public housing authorities when the Housing and Urban Development Act of 1969 was signed into law;

Second, to assure that local housing authorities have sufficient funds to maintain adequate operating and maintenance services and reserve funds:

And third, to make up the loss in rental revenue caused by reducing tenants' rents to a maximum of 25 percent of their incomes. At the same time, the 1969 act placed a ceiling equal to 25 percent of their incomes on the rent which public housing tenants pay.

Seventy-five million dollars in contract authority was authorized for these three purposes. However, congressional intent was clear as

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