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Widnall, Hon. William B., questions and answers about community devel

opment revenue sharing, excerpt from President Nixon's book, “Building

for Tomorrow”. Wilcox, William H.:

Prepared statement

Response to question of Hon. William B. Widnall.. Wilson, Hon. Bob:

Letter from Hon. George Romney, dated May 27, 1971, with attached

legislative draft regarding H.R. 3679..

Prepared statement
Wilson, Hon. Peter, prepared statement-
Young, Hon. John, submission of partial list of churches in the 14th Con-

gressional District of Texas in need of flood insurance..

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APPENDIX

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American Bankers Association, statement-
American Institute of Steel Construction, Inc., New York, N.Y., letter

from John K. Edmonds, executive vice president, dated September 22,

1971.. American National Standards Institute, Inc., New York, N.Y., letter

from Ray P. Trowbridge, president, dated September 23, 1971. Bromberg, Michael D., director, Washington Bureau, Federation of Ameri

can Hospitals, statement..
Burke, J. Henry, Pico Rivera, Calif., letter to Hon. Chet Holifield, dated

August 4, 1971, in regard to earthquake insurance cancellation ---
Cahill, Hon. William T., Governor of the State of New Jersey, statement..
Chamber of Commerce of the United States of America, statement by

Harvey G. Hallenbeck, Jr., on H.R. 9058, Building Sciences Act of 1971,
with attached proposed amendments.
Citizens Against Substandard Housing, Inc., Washington, D.C., letter from

Dorothy W. Jackson, chairman, dated September 29, 1971, with attached

material concerning deficiencies in FH A sections 221 and 235 programs.Daniels, C. Franklin, president, FCH Services, Inc., statementGolz, Paul, president, American Institute of Housing Consultants, state

ment.. Gould, George D., Community Legal Services, Inc., Philadelphia, Pa.,

statement-
Hayden, Bruce P., Connecticut General Life Insurance Co., Hartford,

Conn., letter dated September 24, 1971..
Huber, Donald L., homebuilder, Dayton, Ohio, letter dated September 28,

1971.
Johnson, James A. R., executive director, Council on Intergovernmental

Relations, State of California, statement on legislation relating to 701

planning and management grants and community development Lonergan, Michale J., Ad Hoc Steering Committee for Responsive Federal

Community Development Legislation, statement on proposed Housing and Urban Development Act of 1971, H.R. 9688. Morris, William R., director of housing programs, National Association for

the Advancement of Colored People, statementMutual Ownership Development Foundation, San Francisco, Calif., letter

from Paul Golz, executive consultant, dated September 13, 1971.. National League of Insured Savings Associations, statement by Raleigh W.

Greene, chairman, legislation committee, on pending housing legislation. Phillips, Kenneth F., director, National Housing and Economic Develop

ment Law Project, Earl Warren Legal Institute, University of California,

Berkeley, Calif., statement with attached memorandum on H.R. 9331.
Portland Cement Association, statement on H.R. 9058.
Rockefeller, David, the Chase Manhattan Bank, New York, N.Y., letter

dated September 28, 1971, with an attached statement entitled, "A New

Approach to Financing New Community Development”.
Rose, Julius, General Developing Co., Richland, N.J., statement with an

attached article and appendix.
Rosenthal, Hon. Benjamin S., letter dated September 24, 1971.
Shinn, T.A., Jr., vice president/National legislation, the Building Industry

Association of California, Inc., statement with an attached report from the California Builders Council Legislative Bulletin. United States Savings and Loan League, statement regarding various

housing bills..

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HOUSING AND URBAN DEVELOPMENT

LEGISLATION—1971

TUESDAY, AUGUST 3, 1971

а

HOUSE OF REPRESENTATIVES,
SUBCOMMITTEE ON Housing OF THE
COMMITTEE ON BANKING AND CURRENCY,

Washington, D.C. The subcommittee met, pursuant to call, at 10 a.m., in room 2128, Rayburn House Office Building, Hon. William A. Barrett (chairman of the subcommittee) presiding.

Present: Representatives Barrett, Sullivan, Ashley, Moorhead, Stephens, St Germain, Gonzalez, Reuss, Minish, Widnall, Dwyer, Brown, Stanton, Blackburn, and Heckler.

Mr. BARRETT. The meeting will come to order.

This morning we begin hearings on housing and urban development legislation. We welcome as our first witness the Secretary of Housing and Urban Development, the Honorable George Romney:

Mr. Secretary, members of the subcommittee, and those in the audience, I think it is obvious to all that we have before us this year the most comprehensive and far-reaching housing and urban development legislation since the passage of the Housing Act of 1949. That act established our great national goal—"a decent home and a suitable living environment for every American family.” We have tried to move toward the achievement of that goal for more than 20 years, often successfully, but many times not. Now, after more than 20 years of expanding old programs and adding new ones, it is time to review what we have done and rationalize and consolidate our efforts.

The administration's proposals for special revenue sharing for community development and for a consolidating and simplifying our many housing programs are important first steps in that direction. The members of the Housing Subcommittee-and I believe I speak for Members on both sides-believe that the bill recommended by our three panels is another important step. Our housing and urban development problems do not distinguish between Democratic and Republican communities.

They affect all of our communities and all of our citizens. We should approach the various solutions to those problems in the same way, and I am reasonably certain I speak for my colleague, Mr. Widnall, in this respect.

We hope to have the most comprehensive and important hearings in the history of this subcommittee on three important bills, H.R. 9688, H.R. 9331, and H.R. 8853. We will hear from representatives of the administration; the Nation's Governors, mayors, county les ders,

(1)

and State legislative officials; and representatives of all elements of the housing and urban development field. At the conclusion of our hearings, which I expect to be the most informative we have ever held, we will attempt to fashion the best possible solutions to our urban problems. (The texts of H.R. 9688, H.R. 9331, and H.R. 8853 follow:)

(H.R. 9688, 92d Cong., first sess.) A BILL To broaden the national housing goals, to provide housing assistance and promote community

development through block grants with emphasis upon the preservation and more efficient use of the existing housing stock and upon the revitalization of declining neighborhoods, to improve programs of Federal planning assistance with emphasis upon modernizing and increasing the management capabilities of State and local governments, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the “Housing and Urban Development Act of 1971”.

TITLE I-HOUSING GOALS AND ANNUAL HOUSING REPORT

PURPOSE

SEC. 101. It is the purpose of this title to broaden the national housing goal, as set forth in present law, in order to place greater emphasis upon the preservation and more efficient use of the existing housing stock, to provide for the formulation of State and local housing goals, and to require the inclusion of additional information in the President's annual housing report.

BROADENING OF GOALS AND EXPANSION OF ANNUAL REPORT

SEC. 102. (a) (1) Section 1601 of the Housing and Urban Development Act of 1968 is amended by inserting “(a)” after “SEC. 1601.”, and by adding at the end thereof the following new subsections:

“(b) The Congress further finds that the achievement of the national housing goal will require a more efficient use of the Nation's existing housing stock through such measures as preservation, rehabilitation, and improvements in management and maintenance policies, in order that losses to the housing stock may be minimized and the current level of housing services improved.

"(c) In order to facilitate the achievement of the national housing goal and provide a more precise basis for determining national housing requirements, the Secretary of Housing and Urban Development shall encourage (through the provision of planning assistance and otherwise) the formulation of State and local housing goals covering major housing market areas. Such State and local housing goals shall be developed and formulated so as to include both the housing production requirements of the areas involved and the actions needed to preserve the existing housing stock in such areas, including

'(1) the numbers and types of subsidized housing units which are needed to serve various income groups,

“(2) the Federal, State, and local programs which might or should be utilized to meet the goals established, and the adequacy of private financing resources in meeting these goals,

“(3) the identification of impediments to meeting these goals, such as unrealistic or obsolete building codes and zoning regulations, and any recommendations or proposals for eliminating such impediments,

“(4) plans for the location of low- and moderate-income housing so as to provide the residents thereof with greater access to employment opportunities, and

(5) plans for the promotion of market aggregation in order to achieve the benefits of economies of scale." (2) The heading of section 1601 of such Act is amended to read as follows: "REAFFIRMATION OF NATIONAL GOAL; DEVELOPMENT OF STATE AND LOCAL GOALS”.

(b) Section 1603 of such Act is amended by redesignating paragraphs (5) and (6) as paragraphs (8) and (9), respectively, and by inserting after paragraph (4) the following new paragraphs:

(5) include a contingency plan for the provision of required mortgage credit, setting forth proposed governmental actions to be carried out in the event of adverse mortgage credit conditions;

“(6) provide an analysis of changes affecting housing costs borne by occupants, together with recommended actions to reduce the cost of any inflationary elements;

(7) provide an analysis of annual changes in the number and conditions of units in the national housing inventory;”.

TITLE II— PRESERVATION AND REVITALIZATION OF DECLINING

NEIGHBORHOODS

PURPOSE

Sec. 201. It is the purpose of this title to help preserve older urban neighborhoods which are threatened with blight and housing abandonment by establishing a program of neighborhood preservation grants and a new program of Federal mortgage insurance which, in conjunction with additional activities to be carried out by the localities involved, give reasonable promise that the threat of housing abandonment will be eliminated and a suitable and stable living environment.

GRANTS FOR NEIGHBORHOOD PRESERVATION PROGRAMS

SEC. 202. (a) The Secretary of Housing and Urban Development is authorized to make and contract to make grants under this section to cities, municipalities, counties, and other general purpose units of local government (including the District of Columbia) to assist such localities in carrying out in designated neighborhood preservation areas programs designed to improve basic community facilities and services and bring about such other changes as may be necessary or appropriate to eliminate the threat of housing abandonment in such areas and to restore or maintain for the residents of such areas a suitable and stable living environment.

(b) Grants under this section may not exceed 90 per centum of the cost of carrying out, over a period not to exceed 5 years, any of the following types of activities:

(1) the repair of streets, sidewalks, parks, playgrounds, publicly owned utilities, and public buildings to meet the needs of the area,

(2) the improvement of private properties to eliminate dangers to the public health and safety,

(3) the demolition of structures determined to be structurally unsound or unfit for occupancy,

(4) the establishment of temporary or permanent public playgrounds on vacant land, and

(5) such other similar activities and improvements as the Secretary deems reasonably calculated to aid significantly in achieving the objectives of this

section. (c) To be eligible for assistance under this section, a locality, acting through its local governing body, must designate a specific and identifiable area threatened with housing abandonment which the Secretary finds has a reasonable prospect of being restored or maintained as a suitable and stable living environment with Federal assistance to be provided under this title in conjunction with increased and improved social services to be provided under other federally assisted or wholly local programs. Upon approval of a neighborhood preservation area by the Secretary, the locality shall prepare and submit to the Secretary a plan specifying the improvements in basic community facilities and in services to be made in such area over a five-year period. No grants shall be made under this section to a locality with respect to its designated neighborhood preservation area unless the Secretary finds (1) that the five-year plan submitted by such locality is workable and will provide an effective means of carrying out the purpose of this title in such area, (2) that the locality has the necessary capacity to carry out in a timely fashion all of the activities and undertakings set forth in such plan, and (3) that the locality satisfies such other conditions and requirements as he may impose to assure that the purpose of this title will be achieved.

(d) There are authorized to be appropriated for grants under this section not to exceed $25,000,000 for the fiscal year ending June 30, 1972, not to exceed $25,000,000 for the fiscal year ending June 30, 1973 and not to exceed $25,000,000 for the fiscal year ending June 30, 1974. The amount so appropriated shall reman available until expended, and any amounts authorized for any fiscal year under this subsection but appropriated may be appropriated for any succeeding fiscal year commencing prior to July 1, 1975.

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