Upon receipt of FHA Form 2013-W the sponsor will be required to submit Form FH-21a. The predetermination of prevailing wages received from the Secretary of Labor as a result of the sponsor's submission of FH-21a will establish the minimum wages to be paid to all laborers and mechanics employed in the construction of the proposed project. It is important to note that in the event the predetermination of prevailing wages, which is received as a result of the sponsor's request, is either greater or less than the estimated wage rates previously received from the Department of Labor, the Director may, in his discretion, make appropriate adjustments in the maximum insurable mortgage, total estimate of replacement cost, and maximum average monthly rent. A uniform land lease and utility sales contract have been developed which will be used by all three of the Military services. Any modifications thereto must be approved by this office. FHA Forms 3302 and 3303 and all other forms received and used in connection with Title VIII rental housing projects shall be numbered in accordance with the instructions for numbering as set forth in Title VIII Military Housing Letter No. 1, except that those forms which are received and used in connection with the procedure established herein shall not only include the regular project number to be assigned, but in addition thereto shall include a designation to indicate the Military service which in involved (Army, Navy, or Air) followed by the numeral 1 for the first project received pursuant to this procedure. For example: If in the State of Alabama they have to date received one application pursuant to Title VIII and the next application that they receive is from the Air Force, the project number will be 062-80002-Air-1. Attached hereto are copies of FHA Forms 3302 and 3303. A bulk supply of these forms will be shipped under separate cover and additional supplies may be obtained in the usual manner. Also attached is a copy of the Department of Defense's instructions for the selection of sponsors and processing of the project under Title VIII which the Department of Defense is distributing to its field offices. The latter attachement is forwarded for your information only. Detailed underwriting and fiscal instructions from the Underwriting Division and Comptroller's Division, respectively, will be distributed to all field offices. The instructions for processing Military housing projects as set forth in Military Housing Letters No. 1 through 3 remain in full force and effect except as modified herein. Very truly yours, CLYDE L. POWELL, Assistant Commissioner. Commissioner's Clearance No. 1820 (FHA Project No.) FEDERAL HOUSING ADMINISTRATION REQUEST FOR APPRAISAL AND ELIGIBILITY STATEMENT For Military Housing Insurance Under Title VIII of the National Housing Act (To be submitted in triplicate) TO FEDERAL HOUSING COMMISSIONER: This request for an appraisal and eligibility statement is made in connection with a proposed Military Housing project, the location and description of which is set forth below: Name of Military Installation Location Number of family units___ -- Average monthly rent per family unit__. It is understood that the appraisal and eligibility statement to be issued by the Federal Housing Administration pursuant to this request will be based upon plans and specifications to be developed by our Architect and Engineer. The plans and specifications will be completed in sufficient detail for the Federal Housing Administration to furnish an appraisal and eligibility statement showing the maximum insurable mortgage, total estimate of replacement cost of the property and average monthly rent per family unit. Attached hereto is a copy of the contract between the Military and the Architect and Engineer. Pursuant to your request, dated 19. this Administration has considered the plans and specifications developed in connection with the proposed Military Housing Project described in Schedule A below. The maximum insurable mortgage, FHA total estimate of replacement cost of the property and the maximum average rental per unit are indicated in Schedule B. (See Note) This statement is based upon the condition that prior to the expiration date of this statement, an application (FHA Form 2013-W) will be presented to this Administration by an approved mortgagee with respect to a loan to be made to a borrower satisfactory to the Commissioner. *Maximum Insurable Mortgage $- *FHA Total Estimate of replacement cost of the property $ *Maximum Average Rent per Unit $.. A-Per cent of assumed vacancies.--% B-Total Operating Expense per room per year-- Based upon: C-Reserve for Replacements D-Total Estimate of Taxes (excluding E-Equipment and Services included *Note: The cost of labor used in the Commissioner's total estimate of replacement cost is based upon an estimate of prevailing wages as made by the Secretary of Labor, a copy of which is attached. At the time FHA Form 2013-W, Application for Mortgage Insurance, is filed with the FHA, the sponsors shall submit Form FH-21a, Request for Determination of Prevailing Wages. Pursuant thereto, there will be issued a determination of prevailing wages by the Secretary of Labor which will establish the minimum wages to be paid laborers and mechanics employed in the construction of the project. If the latter mentioned wage scale is greater or less than the attached estimated wage scale, the FHA may, in its discretion make appropriate adjustments in the maximum insurable mortgage, total estimate of replacement cost and maximum average monthly rent. The above information should be made available to prospective sponsors since they will be required to pay not less than the prevailing wages as determined by the Secretary of Labor. Memorandum for: The Secretary of the Army. The Secretary of the Navy. The Secretary of the Air Force. SEPTEMBER 18, 1950. The attached copy of a September 6, 1950, memorandum from the Secretary of Defense to the Secretary of the Air Force extends discretionary authority to the Secretary of the Air Force for entering into a supplementary agreement with the original sponsor of a Wherry housing project at MacDill Air Force Base for additional units. Hereafter, when similar circumstances develop in connection with the Wherry housing operations of any service the Secretary of the service involved is authorized to determine whether a project extension should be developed through agreement with the original sponsor upon the same terms as were agreed upon to control the development of the first part of the project or whether the extension should be considered a new project for development under the Department of Defense instructions for selection of sponsors and processing of projects under title VIII of the National Housing Act (as amended), forwarded to the service secretaries by my memorandum of May 1, 1950. W. J. MCNEIL. SEPTEMBER 6, 1950. Memorandum for: The Secretary of the Air Force. Subject: Supplementary Public Law 211 Project at MacDill Air Force Base. It is understood that need has been established for the provision under Public Law 211 of 250 dwelling units at MacDill Air Force Base in Florida, in addition to the 550 units already approved for that installation. It is also understood that the sponsor selected by you for the provision of the 550 units, whose application for mortgage insurance has been approved by the Federal Housing Administration, has expressed a willingness to furnish the 250 additional units upon the same terms as prescribed and agreed to for the original 550 units. In view of the prevailing uncertainty with respect to material and labor costs, discretionary authority is hereby extended you for entering into a supplementary agreement with the original sponsor upon the terms indicated in the above paragraph. LOUIS JOHNSON. OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE, DEPARTMENT OF DEFENSE, Memorandum for the Secretary of Defense. Subject: Supplementary Public Law 211, project at MacDill Air Force Base. 2. This subject was discussed by the Commission at its last meeting on August 18, 1950. It was decided that the Commission would recommend that authority should be granted by the Secretary of Defense to the Secretaries of the three services to negotiate agreements with original sponsors for additional dwelling units in the case of projects where sponsors have already been selected and mortgage insurance commitments issued by the Federal Housing Administration under the old procedures for Public Law 211; provided that rental rates for such additional units should not exceed rental rates for similar units as prescribed in the original agreement. 3. It is recommended that authority be granted to the Secretary of the Air Force to proceed as set forth in paragraph two above with respect to additional dwelling units for MacDill Air Force Base, subject to the amendment to the Certificate of Need referred to in the memorandum from Assistant Secretary of the Air Force Stuart. Draft of a proposed memorandum to this office is attached. By direction: (Signed) LAWRENCE WESTBROOK, Executive Secretary. DEPARTMENT OF THE AIR FORCE, Memorandum of the Defense Housing Commission There are presently under construction at MacDill Air Force Base 550 rental units insured under title VIII of the National Housing Act. These units represent 50 percent of the housing deficiency found to exist at the base as calculated by the formula approved by the Defense Housing Commission. Since certification of these 550 units by the Secretary of the Air Force, appropriated funds housing planned for the base to the extent of 96 units has been deleted from the public works appropriation bill. In addition, 300 sets of public quarters which are unsatisfactory have been declared inadequate by the base commander. The commanding officer has authority to make a determination as to adequacy and to the effect that quarters are substandard. Inadequate quarters are subject to voluntary occupancy only, and if occupied presumption of adequacy is conclusive. But if unoccupied, such quarters may be assigned to personnel of the lower four grades (who are not entitled to quarters allowance) upon their agreement to pay monthly utility charges. This action will, in addition to putting our airmen of the upper grades in suitable housing, make available this substandard housing to the enlisted personnel of the lower four grades, which will materially assist this group of personnel who are not economic renters, and for whom the Government makes no provision. In order that there can be no question of the propriety of this action we have checked to insure that the quarters are indeed substandard. We have also formulated a policy to the effect that not only the monthly utilities charges but any maintenance charges against these quarters will be borne by the tenants, and furthermore that no major repairs or renovations will be made to quarters after they have been declared inadequate or substandard. Concurrence is requested to amend the certificate of need for military housing by the addition of 250 units. This request is based upon 100 percent replacement of the deleted appropriated fund units and approximately 50 percent of the substandard quarters. This increase would amount to about 30 percent of the new total of 800 Wherry units, which we still believe to be conservative as to requirements and rentable. It is requested that the Secretary of Defense authorize the Secretary of the Air Force to enter into a negotiation without competition with the sponsor at MacDill Air Force Base for 250 additional dwelling units to be constructed and operated in accordance with the original proposal. Immediate action is requested in order that existing options for material may be exercised. Signed by HAROLD C. STUart. ASSISTANT SECRETARY OF DEFENSE, Washington 25, D. C., July 18, 1951. Memorandum for: The Secretary of the Army The Secretary of the Navy Reference is made to my memorandum of May 1, 1950 relative to the procedures to be followed by the services under the National Housing Act (title VIII) as amended. In order to insure that housing projects can be carried out without undue delay, the using services are authorized to negotiate directly without competition on projects of 75 units or less where circumstances indicate that the advantages to be gained from competition will not be commensurate with the time lost. W. J. MCNEIL. OFFICE OF THE SECRETARY OF DEFENSE, Memorandum for the Secretary of the Army. the Secretary of the Navy. the Secretary of the Air Force. Subject: Department of Defense responsibility for occupancy of on-post title VIII housing. In certifying the need for title VIII housing, the Department of Defense shares in the responsibility and, in addition, has a keen self-interest to achieve maximum occupancy. To carry out this responsibility, it is requested that the military departments take appropriate steps to assure that the projects are operated and managed properly, and to lend all reasonable assistance in encouraging and maintaining maximum occupancy. THOMAS P. COOGAN, Director, Armed Forces Housing Agency. December 1, 1951 Title: Budget. DEPARTMENT OF DEFENSE DIRECTIVE Subtitle: Public works. Number: 7150.2-Expenditure of funds for housing projects. 1. The following policy and procedures are applicable to the expenditure of appropriated funds authorized by Public Law 155, 82d Congress, for land acquisition, installation of outside utilities (including both on-site and off-site) and site preparation, for housing projects to be constructed under title VIII. The procedures herein prescribed are to be integrated with those previously promulgated for processing of title VIII projects, as appropriate. (a) Definitions. For purposes of this directive the following definitions apply: (1) Off-site area, Government owned, beyond the boundary line of the land covered by the lease. On-site area covered by the lease. (2) Floor area = the space inside the exterior walls, excluding basement (utility room in lieu of basement), attic space, garage, and open porches. (3) Site preparation and utilities removal of existing structures, removal of growth, grading and grubbing, installation of sewer, water, electric, and gas lines to the 5-foot line of the building, streets, sidewalks, curbs, and gutters, fine grading, seeding, sodding, and landscaping. 2. Acquisition of land. (a) Where Government-owned land is not available for an approved title VIII project, appropriated funds may be expended by the service concerned for the acquisition of a suitable site, when the need for such land is definitely determined. Such acquisition may be made in the manner customarily used by the service for land acquisitions. (b) Acquisition of title to the land selected as the site for a title VIII project will result in the conversion of such a project to a Government-owned land project and the procedures hereinafter set forth for such projects will then be applicable. 3. Site preparation and/or outside utilities.-(a) Policy.—In general, the policy governing the expenditure of appropriated funds for site preparation and/or outside utilities, will be to limit the expenditure of funds to that amount which is necessary to achieve the construction of satisfactory housing. It is believed that this objective will be achieved if appropriated funds are used to make up the difference between the maximum insurable mortgage and 90 percent of the FHA estimate of total replacement cost or 90 percent of the sponsor's bid total replacement cost, whichever is lower, and if the Government undertakes to supply the off-site utilities for the project. (b) Procedures.-Promptly after the execution of the contract with the selected architect-engineer, meetings shall be held among representatives of the military field office, the architect-engineer and the FHA insuring office to determine the approximate maximum insurable mortgage, the estimated replacement cost of the proposed project and the off-site requirements, if any. (c) The determination in (b) above will involve a preliminary analysis of number and kind of living units required, type of construction, anticipated income, operating expenses, utilities costs, taxes, construction costs, etc. The target estimated replacement cost (which does not include off-site requirements) will |