Chart D contains full details of housing authorizations and appropriations. Summary thereof is as follows:

Mr. RIVERS. Most of this is under Capehart.

Units

9, 871

4, 400

12, 896

27, 167

The CHAIRMAN. No, this is direct appropriations of the 27,000. Mr. FLOETE. This is authorizations in the appropriations I am talking about.

Mr. RIVERS. When you get to Capehart, that is when I want to ask about the money available for the acquisition of land upon which to build your Capehart houses.

The CHAIRMAN. He does not discuss that in his statement. He is only talking about direct appropriations authorized by this committee. Mr. RIVERS. But, Mr. Chairman, they have to authorize the acquisition of land upon which to build the Capehart houses. Is that not right?

Mr. FLOETE. That is right.

Mr. RIVERS. Sure he does. He deals in that.

Mr. FLOETE. I will get to the Capehart item a little later.
Mr. RIVERS. That is all right. I just wanted to be sure.

Mr. FLOETE. Construction progress on December 31, 1955, was as follows:

The bids which have been received for family housing up to December 31, 1955, have varied in the Army from $8,679 to $13,826 per unit, in the Navy from $7,812 to $20,000 per unit, and in the Air Force from $9,023 to $20,000 per unit. These unit costs are exclusive of utilities beyond the 5-foot line, design, and Government costs. The higher unit costs are for houses of 3-5 units at a given location for general officers.

At the beginning of 1955 we planned to meet our requirements for the large accumulated deficit of family housing by requests for congressional authorization and appropriation in annual increments amounting to approximately 20 percent of the requirement per year. If this method proves successful, they can be supplied as one project rather than a series of smaller annual ones. This should improve the

family morale by providing proper housing to all families at a given base at approximately the same time.

By using title IV method and appropriated funds as mutually supplemental devices, it is probable to work out a well-planned accelerated program.

Admittedly the cost to the Government is more under the title IV than by appropriated funds, primarily because of the difference in the interest rates.

Mr. BROOKS. What is the difference, Mr. Secretary? What, percentagewise? How much more does it cost?

Mr. FLOETE. If we assume we can borrow money, when you appropriate if we asume that the interest rate would be 3 percent, and since we know that under the Capehart, at the present time, it is 414 percent, the difference in the final cost is $2,350. That is the final difference at the period of complete amortization of the Capehart method. Mr. BROOKS. That is per unit, $2,350?

Mr. FLOETE. Yes, sir; per unit.

Mr. BROOKS. Then we are just fooling ourselves, are we not, with this Capehart amendment?

The CHAIRMAN. Mr. Brooks, may I say that I have analyzed three things: Direct appropriation, the Wherry law and the Capehart law, and I am sure it is my feeling that it is to the interest of the Government to make direct appropriations and amortize it out of quarters' allowance, rather than follow any other method that has been proposed up to date for Wherry or Capehart.

Mr. BROOKS. Mr. Chairman, we have great respect for your figures but do you object to Mr. Floete giving his opinion?

The CHAIRMAN. He has already given his.

Mr. BROOKS. I did not get his answer to my last question, there. We are just fooling ourselves, are we not, with this Capehart business?

Mr. FLOETE. Well, I think you gentlemen know that this is the third time I have appeared before you on housing, and each time I have said that the appropriated-fund method was the best and the cheapest. I still think that.

Mr. COLE. That is providing you can get the appropriation?
Mr. FLOETE. Yes, sir.

Mr. COLE. And when you cannot get the appropriations the Capehart method is the best?

Mr. FLOETE. And is proving to be a very good method.

Mr. RIVERS. We did all we could but you could not get the money and the only thing left was for some other commitee to go out and provide military housing.

Mr. DURHAM. You are authorized under Public Laws 765 and 161, and we appropriated under Public Law 632, for 27,167 units, and so far you have only actually constructed 6,000 of them. That does not look like we are making much progress.

Mr. FLOETE. Those are largely the ones you appropriated for 2 years ago. They are just getting to work on last year's and it is going. Mr. DURHAM. It does not take 2 years to draw a plan for a house. Mr. FLOETE. We only got the money, I think, about the first of August last year and they are proceeding on it.

Mr. RIVERS. I know some you have not even got the contract on yet.