the American Institute of Architects and the soundness of the house would stand up under the most severe professional scrutiny. The Veterans' Administration showed evidence of the most complete cooperation and agreed with me that the primary objective, if we were to solve the housing problem, was to keep the price of the house down and thereby keep the payments to the veteran low. Through the cooperation of the Veterans' Administration I was able to lower the price to $6,450 with no down payment except closing charges, and monthly payments of $40 per month for interest and principal. While I believe you will agree that this is a splendid deal for the veteran purchaser, it has been most difficult to obtain financing under these terms. The corporation building the houses has obtained the necessary financing, but in order to do so they must pay the financial institution 3 percent for each loan of $6,450 as a commission, and this institution insists on the exclusive sales right for any houses they finance at another 3 percent. That is a total of $387 per house which must be absorbed by the builder. I don't blame the financial institution. As a matter of fact, the corporation building these houses couldn't go ahead without their help. But I believe that the scarcity of money for straight Veterans' Administration insured loans is the chief obstacle to the building of low-cost houses around Washington and throughout the country. Most small builders operating on small margins of profit could not stand to absorb this 6 percent in order to get their projects financed. It is my firm belief that section 512 of H. R. 5631, supplemental direct loans to veterans, will cure this situation, as this section of the bill provides that where a veteran is unable to obtain a loan from private lending sources he may borrow directly from his Government through the Veterans' Administration at the rate of 4 percent per annum. It is my firm opinion that the Government will not be called upon to make a large number of direct loans under this provision because as soon as private lending institutions see this source of revenue going out of their hands, they will hasten to make terms with the veteran as attractive as he can get from the Federal Government. I therefore respectfully ask the House Banking and Currency Committee to give favorable consideration to this provision in H. R. 5631 because from the letters I have received from all over the country since my low-cost house was announced, there are plenty of builders willing and able to build and sell houses in the $5,000 to $6,000 class if they can count on this type of financial assistance without paying a high premium for the money. Sincerely, TIGHE E. WOODS, Housing Expediter. The CHAIRMAN. If there is nothing further, the committee will adjourn to meet tomorrow at 10 o'clock. (Whereupon, at 11:32 a. m., the committee adjourned, to reconvene at 10 a. m. Tuesday, August 9, 1949.) HOUSING AMENDMENTS OF 1949 TUESDAY, AUGUST 9, 1949 HOUSE OF REPRESENTATIVES, COMMITTEE ON BANKING AND CURRENCY, Washington, D. C. The committee met at 10 a. m., Hon. Brent Spence (chairman) presiding. Present: Mr. Spence, Mr. Brown, Mr. Rains, Mr. Buchanan, Mr. Multer, Mr. Deane, Mrs. Woodhouse, Mr. McKinnon, Mr. Addonizio, Mr. O'Hara, Mr. Wolcott, Mr. Kunkel, Mr. Cole, Mr. Nicholson. The CHAIRMAN. The committee will be in order. Congressman McSweeney and Congressman Curtis have asked to appear. We will hear them for a few minutes. You may make a short statement, Congressman McSweeney, and then put anything that you please in the record. STATEMENT OF HON. JOHN MCSWEENEY, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF OHIO Mr. MCSWEENEY. Mr. Chairman and ladies and gentlemen of the committee, I am especially grateful to you for letting me make this short statement. In Canton, Ohio, we have what is known as the Don Mellett housing project, which is a permanent housing project. I have introduced a bill to have it turned over to the local housing authority, but when the present bill was introduced I felt that it would be fine if they could be included in that bill that is now pending before the Banking and Currency Committee. I went before the group in Canton. They wanted this temporary housing torn down and other housing demolished. I felt, as I said to them, it would be the act of a dog in the manger to tear down that housing while there was a tremendous need for it and no other housing available. It was then that I introduced my bill. I am not going to take any more of your time, sir. I respectfully ask that the Don Mellett housing project in Canton, Ohio, be included in this present proposed legislation. Thank you very much for your kindness. If I may, I might wish to insert some further statement in the record relative to the matter. The CHAIRMAN. We will now hear from Congressman Curtis. STATEMENT OF HON. CARL T. CURTIS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEBRASKA Mr. CURTIS. Mr. Chairman, I will be as brief as I can. I appear here in reference to the Harvard Courts, a housing project built to take care of people in connection with the Harvard Army airfield, which has been discontinued. Briefly, we ask that these courts be turned over to the municipality of Harvard in Clay County, Nebr., a city of something less than 2,000 inhabitants. Mr. Chairman, while I realize these are general hearings, in order to lay this proposition in its technical description before the committee, I ask leave to insert the bill that I introduced pertaining to this particular project. The CHAIRMAN. It may be inserted. (The bill referred to is as follows:) [H. R. 4389, 81st Cong., 1st sess] A BILL To provide for the transfer of the temporary housing project known as Harvard Court, Nebraska25066, to the city of Harvard, Clay County, Nebraska Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, notwithstanding the provisions of the Act entitled "An Act to expedite the provision of housing in connection with national defense, and for other purposes", approved October 14, 1940, as amended (commonly known as the Lanham Act), the Housing and Home Finance Administrator is authorized and directed to donate and convey by quitclaim deed to the city of Harvard, Clay County, Nebraska, all right, title, and interest of the United States in and to the temporary housing project described as Nebraska25066 and known as Harvard Court, two hundred and sixty unit project, further described as follows: Beginning at a point thirty-three feet north and thirty-three feet west of the southeast corner of section 27, township 8 north, range 7 west, of the sixth principal meridian, for a place of beginning; thence west along the line whose bearing is north eighty-nine degrees thirty-eight minutes west a distance of one thousand two hundred seventy-five and five-tenths feet to a point thirty-three feet north of the southwest corner of the southeast quarter of the southeast quarter of section 27; thence north along the west line of the southeast quarter of the southeast quarter of section 27 whose bearing is north no degrees sixteen and one-half minutes east a distance of one thousand two hundred eighty-four and six-tenths feet to the center of the southeast quarter of section 27; thence east along the north line of the southeast quarter of the southeast quarter of section 27 whose bearing is north eighty-nine degrees eighteen minutes west a distance of one thousand two hundred seventy-five and thirty one-hundredths feet to a point thirty-three feet west of the northeast corner of the southeast quarter of the southeast quarter of section 27; thence south on a line parallel with and thirty-three feet west of the east line of the southeast quarter of section 27 whose bearing is north no degrees fifteen minutes east a distance of one thousand two hundred eighty-six and two-tenths feet to the place of beginning in Clay County, Nebraska. The provisions of section 313 of such Act of October 14, 1940, should not be applicable to the property conveyed pursuant to this Act. Mr. COLE. Yours is a different suggestion. It will be returned direct to the municipality and not to a local public housing authority? Mr. CURTIS. That is correct. There is no local public housing authority near there. This was brought to my attention some months ago by a telephone call from Mayor Irvin R. Diech, of Harvard, who told me some Government agency or officials were out there and about to tear down this 260-family unit housing project; that it was too valuable to tear down; that it was of good construction, and could I do something. I took that up with the Public Housing Administrator, and on May 4 I received a letter from Commissioner Egan saying that they would withhold the demolishing of that project pending some legislation on the subject. Mr. Chairman, I would like to have that letter inserted in the record. The CHAIRMAN. Without objection, it will be inserted in the record. (The letter referred to is as follows:) Hon. CARL T. CURTIS, PUBLIC HOUSING ADMINISTRATION, House of Representatives, Washington, D. C. DEAR CONGRESSMAN CURTIS: This will acknowledge your letter of April 8, 1949, in which you request that we postpone further action to demolish or remove the temporary housing units at our Nebraska 25066 project, Harvard, Nebr. In view of your contemplated action to seek legislation affecting the disposition of this project, it will be satisfactory to temporarily defer the removal of these units. Sincerely yours, JOHN TAYLOR EGAN, Commissioner. Mr. CURTIS. The Housing Commissioner's office has described this project as follows: The buildings in the project, originally consisting of 260 temporary dwelling units, have been thoroughly stripped of salvagable materials, for reuse under title V of the Lanham Act in order to house distressed families of servicemen and veterans with families. The project in Harvard has been in an inactive status since March 1947, when it was determined that there was no further need of it for housing purposes. Inasmuch as section 313 of the Lanham Act has been interpreted to require physical removal of all such temporary dwelling units, sale of this project for the use proposed is not permissible. The mayor of Harvard describes the project as follows: The Harvard Courts are of concrete construction. There are 33 acres in the plot of ground on which they are standing. This land was appraised at $100 per The units are all painted inside and out and make a nice appearance. acre. He also advises me that he is sending a blueprint of it which I have here for the committee's use, if they want it. It is too cumbersome to put into the record. Mr. BROWN. Are these buildings occupied by tenants now? Mr. CURTIS. They are not occupied. The mayor's intervention saved them from being demolished. I think that I can say without much chance of being refuted that if they were demolished it would be a loss to the Government. The CHAIRMAN. How are they constructed? Mr. CURTIS. Concrete. Mr. COLE. What is the city going to do with them? Mr. CURTIS. The city has in mind making them available for an old peoples' home. That surrounding territory for several hundred miles is in need of such an institution. Inspection has been made of the premises and they are of such construction and type as can be used for that purpose. The record indicates that they did not get quite all the plumbing torn out. Mr. Chairman, at this point in the record I would like to present the statement of June 21, signed by the mayor and all four councilmen of Harvard, which states in substance that they believe that this housing project is of too much value to be torn down that they need it there, and they ask that it be turned over to the city. The CHAIRMAN. It will be inserted in the record at this point. (The letter referred to is as follows:) Congressman CARL T. CURTIS, Washington, D. C. CITY OF HARVARD, Harvard, Nebr., June 21, 1949. DEAR MR. CURTIS: This letter is being sent you in the interest of the citizens, business men of the city of Harvard and the surrounding community in regard to the Harvard Courts, belonging to the Federal Housing Administration. Your bill, H. R. 4389, in which if passed would in turn, turn the Harvard Courts over to the city of Harvard. We, as the city council, feel the passage of this bill would be a great asset to the city, State, and residents of the State of Nebraska. If these courts were put into the possession of the city we in connection with the American Council of Luthern Churches would establish an old peoples home in said courts. The need for homes for the old people is growing in ever-increasing numbers. We feel that since these courts are so well constructed and so well located that there use such as we have in mind would relieve the situation for homes for the older people of our good old United States. This in our opinion would be much better than having them demolished as the law now calls for. Sincerely yours, we remain, Hon. ERVIN R. BIECK, Mayor of Harvard, Harvard, Nebr. ERVIN R. BIECK, Mayor. J. V. FRANK, Councilman. JUNE 27, 1949. DEAR MAYOR BIECK: This will acknowledge the statement signed by you and other city officials in regard to the Harvard Courts. I will continue to do everything I can on this project. Sincerely yours, I am glad to have this and CARL T. CURTIS. Mr. CURTIS. Frankly, this statement will also refer to the plans for the old peoples' home, and they mention that a Lutheran Church would want to sponsor that. Mr. BROWN. If they are torn down the site will not amount to anything. Mr. CURTIS. No. It will be a loss to the Government. The CHAIRMAN. Who asked for the title-the municipality? Mr. CURTIS. The municipality. That is what I am coming to. They mention in their statement that they have had some conferences with the Lutheran Church about this old peoples' home. Frankly, I do not think that this Congress can or should deal with the church. I think that the way to put this into responsible hands would be to deal with the municipality. The CHAIRMAN. I see. Mr. CURTIS. My request is quite simple. I think that the entire project-land, buildings, and all should be turned over to the city of Harvard. It was one of those communities that accommodated the Air Force. The project is there for the Government to continue to hold and it will result in further loss for them. I would like to see the entire project turned over to the city. It is usable. It would be a great waste of material and potential housing facilities to have it demolished, and it will be demolished unless the Congress passes some legislation. |