Senator DOUGLAS. You pledge yourself to that? yo
Mr. REED. I hereby pledge the Department to that.

I would like to say we feel the interests of the Govern best served by those who have had the highest level of handling such properties. We are not per se real estate this is our objective here.

Senator DOUGLAS. Now, it may be that we would wa these provisions or some modification of them in the ho we have under consideration. I understand that H.R. before the Committee on Government Operations. S Mr. REED. We understand that.

Senator DOUGLAS. We do not wish to get involved in a quarrel with that committee. But the original clause w passed upon by our committee. Subject to the opinion man, it would seem to me any revision of this act sho out by this committee rather than by another committee. I believe Senator Sparkman has asked for the detail sions which you favor and thus far has been unsuccessfu them. Is that correct? (OLDSE hatonjong sili to m Mr. REED. The details of what is proposed in our legi Senator DOUGLAS. Of the proposed legislation, yes. Mr. REED. This legislation is currently under review of the Budget. But, knowing of the extreme interest of tee, I was given permission as an exception to the norm cuss with you the highlights of what was intended in the We envision, sir, that legislation will be up

Senator DOUGLAS. Why are you not willing to discu this committee? You must get a clearance from the 1 Budget first?

Mr. REED. Yes, sir. Before a department can talk on: posed legislation.

Senator DOUGLAS. One of the committee staff raises a ing question. Would your legislation provide retroacti those who have been denied compensation because of the Defense Department to carry out the provisions of se

Mr. REED. Any person who has sold his property or foreclosure at one of the bases which was closed subsequ ber 1, 1964, which is the date established in section compensated under this proposal, if he had suffered a st

Senator DOUGLAS. I wonder if you would be willing to Bureau of the Budget to expedite its action and, as soon set of recommendations is ready, if you would transmi committee.

Mr. REED. I would be pleased to do that, sir.

Senator DOUGLAS. Thank you.

Senator Proxmire?

Senator PROXMIRE. No questions.

Mr. REED. Thank you, Mr. Chairman.

Senator DOUGLAS. Please consider this question as f roles of the bureaucracy and the legislative bodies in the Mr. REED. Thank you, sir. I will.

(The following information was later submitted for th

HOUSING LEGISLATION OF 1966

DOD STUDY OF ASSISTANCE TO HOMEOWNERS IN BASE CLOSURE AREAS

be

The problem

HIGHLIGHTS

165

The November 1964 base closure announcements had an unprecedented impact. DOD has demonstrated a responsibility toward communities and individuals affected by base closures through gradual phase downs wherever feasible and through its economic adjustment program.

However, when housing values drop significantly as the result of a closure action, the needs of dislocated DOD-connected homeowners are immediate and pressing. They need :

Relief from outstanding mortgage obligations;

Some funds with which to acquire a new home in a new area; and Restoration of at least a portion of accumulated equities which may repre sent life savings.

Section 108

Congress demonstrated its concern for this problem by enacting section 108 of the 1965 Housing Act.

But section 108 poses inherent administrative problems. It could mean under writing speculative profits. It ignores the recognized concept of "loss sharing" between employer and employee.

Homeowners assistance in private industry

Industry plans are not relevant to the DOD problem.

Yet there is a clear trend toward more widespread industry recognition of a responsibility to assist transferred employees.

Present and proposed Government assistance

At present the Federal Government only provides for moving expenses, including transportation of household goods, plus certain temporary living expenses outside CONUS.

Pending legislation which the administration has supported (H.R. 10607) provides civilian employees with additional benefits:

Expenses of travel to new location to seek home prior to moving;

Up to 30 days temporary living expenses at new location in CONUS;
Per diem expenses during move for family as well as the employee;
Increased weight limits;

Reimbursement for lease terminations; and

homes.

Reimbursement for sales expenses for old homes and closing costs for new

Eligibility under this study

Non-DOD-connected personnel would be excluded.

Eligible employees must be military personnel or DOD career or career-conditional employees assigned to a closed activity at the time of the announcement of the closure action (with certain exceptions).

They must have been the owner-occupant of a dwelling in the impacted area at the time of the closure announcement (with certain exceptions).

They must have been transferred (military) or required to relocate to new employment outside the commuting area (civilians), unless they qualify for assistance on the basis of hardship.

Families of deceased employees who would have been eligible would also be eligible.

Formula for assistance

The proposed formula provides for acquisition by DOD of housing of eligible personnel in impacted areas on the basis of three alternates. In addition, there is a cash contribution toward sales expenses for those who elect to sell on the private market.

This multifaceted approach has been tailored to meet the needs of short-term owners (mostly military) who principally require mortgage relief, as well as the needs of long-term owners (mostly civilians) who are concerned about recovering a reasonable portion of their accumulated equities.

Each alternate is relatively simple.

The formula employs a threshold concept in determining acquisition prices, similar to the deductible feature in auto insurance policies.

It employs a loss-sharing concept similar to that frequently used in insurance.

The sales incentive will encourage private sales and minimiz Government acquisitions in areas where market value decli moderate.

Formula acquisitions will support local housing markets in are sharp declines.

Scope of assistance

The program includes DOD homeowners affected by base announced subsequent to November 1, 1964. (Same starting date The total of military personnel and civilians affected by such is 203,280. Of these, an estimated 44,353 would be homeown consideration.

Cost

Fiscal year 1967 costs are estimated at about $58 million, fa estimated cost to implement section 108.

Procedures

Section 108 would require acquisition of homes by DOD. The turned over to FHA for disposal.

Here it is contemplated that FHA would act as DOD agen holding, and disposing of properties.

Senator DOUGLAS. I would like to ask the distinguishe this committee to introduce several representatives of mininion.

STATEMENT OF A. WILLIS ROBERTSON, U.S. SENATO
STATE OF VIRGINIA, AND CHAIRMAN, SENATE CO
BANKING AND CURRENCY

Senator ROBERTSON. Mr. Chairman of the subcommit course, know, this is a very busy period for us all. Sena had to leave to attend a meeting of the Foreign Relatio that is considering what should be done to get an hono Vietnam. It is not a very happy situation, and that con

At the moment, the distinguished Secretary of the Tr tying before my subcommittee on his budget. And, of not have any money to fight the war against Vietnam or unless we collect it, and naturally I have got to be there gets some money to collect the taxes to pay the bills.

But it is good of you, considering how pressed we all this opportunity to present to this committee some ver stituents and warm friends from an area with which been associated for many years.

I do not know whether you know it or not, but my home missionary of the Baptist Church. In 1900 he wa little country churches in Franklin County. There w school in the county-not one.

His pay was $500 a year, with a small parsonage.

He had five boys, and I was the oldest one. He was cated man and practically had three degrees. He could sics in Greek, Latin, and Hebrew. He wanted his sons t

So in 1904 he moved to the little college town of Sale is a very old and historic town near what was known as the Revolutionary War. Many years later the Norfo built through that area and established headquarters called Big Lick. That became the fastest growing city just 7 miles away.

HOUSING LEGISLATION OF 1966

167

I was on my own at 18. I financed myself. We did not have any college loans in those days. We did not even have any worthwhile football scholarships. They let me room with the coach in return for playing football.

I got through college, and my bothers got through college, and I went into politics. The rest of them did mighty well financially. One became president of a bank, one a doctor. They were both from Roanoke. Another brother was a contractor.

In my 50 years in politics I have made enough to meet my bills and that is about all. But I have devoted myself to serving a State that has been very kind and generous to me.

And so I give you that background introduction to indicate why I'm here, to say it is a privilege and a pleasure to present representatives of the city of Roanoke who will tell you about the civic center and auditorium and coliseum that they want to build and why it is appropriate that its cost should be counted as a local grant-in-aid toward the Commonwealth redevelopment project in Roanoke (UR-VA-7-1) or other urban renewal projects.

As I understand the general policy, the cost of public facilities in an urban renewal area which serve the area and constitute a necessary part of it may be counted as a local grant-in-aid, but not public facilities which are designed to serve the entire community.

Roanoke is one of Virginia's leading convention cities. The Hotel Roanoke there I think is not only one of the biggest but it is one of the best run hotels in Virginia, and it is a very popular hotel. We find we cannot house a really big convention there I believe in Roanoke.

One of the first requirements of a convention city, possibly second only to the need for hotels, is a suitable meeting place or convention hall for large groups. The auditorium and coliseum in the new Roanoke civic center will be invaluable in attracting to Roanoke conventions and meetings of even larger groups than have ever met in Roanoke. While the auditorium and the coliseum will on occasion be used for meetings of Roanoke citizens, I venture to say that their chief use, and perhaps the chief reason for their construction, is to accommodate and attract huge meetings of convention crowds.

At present, the largest meeting Roanoke can accommodate is 600 in the hotel ballroom. And my friends there want a coliseum that can seat 10,000 people. That would accommodate the biggest convention, and it would be a great contribution. But, as you know so well, the civic center would also serve the whole community, and under the law an urban renewal project whose benefits extend beyond the urban renewal area cannot qualify, and this civic center then is in that situation. It is a bona fide urban renewal project, but it will also serve all of this wonderfully fast-growing industrial city.

It seems clear to me that the cost of the center should properly be counted as a local grant-in-aid to the Commonwealth redevelopment project. And in order to permit them to share, as Denver did and as Norfolk did last year, I introduced a bill, S. 3146, in order that this issue might be brought before this committee while legislation pertinent to this subject is being considered, because I think there were some grounds for the complaint of the conferees last year that, while they would go ahead on those two items, they were not going to add on any other similar project this year unless the committee had a chance to

So, Mr. Chairman, I want to present to you my esteen constituent Benton O. Dillard, the mayor of Roanoke, w his claim. He will be accompanied by the vice mayor Wheeler; the city manager, Mr. Julian F. Hirst, and director of the Roanoke Redevelopment Land Agend Henley.

Will you come up to the witness table. His honor, th open the statement, and then you gentlemen can follow STATEMENT OF BENTON 0. DILLARD, MAYOR OF ROANOKE, VA.; ACCOMPANIED BY VINCENT WH MAYOR; JULIAN F. HIRST, CITY MANAGER; AND HENLEY, EXECUTIVE DIRECTOR OF ROANOKE RED AND HOUSING AUTHORITY

Mayor DILLARD. Thank you, Senator.

Senator ROBERTSON. We welcome you to the hearing Banking and Currency Committee.

Mayor DILLARD. We certainly appreciate it.

Senator ROBERTSON. Now the acting chairman, the Senator from Illinois, will take over. I have got to go the Treasury Department a little money to get some tax

Senator DOUGLAS. I probably will not be able to a same distinguished courtesy that Virginians accord to will do my best to welcome you here very warmly, Mayor Mayor DILLARD. Mr. Chairman, of course, we thank uished senior Senator from Virginia for his kindness. down there, and we're going to do everything we can time.

Mr. Chairman we have a short prepared statement t directly to the point in which we ask support of Senate bi your permission, I would like to go through it.

Senator DOUGLAS. Yes, indeed.

Mayor DILLARD. Thank you, Senator.

As mayor of the city of Roanoke, Va., I appear here direction and with the authority of the City Council of the interest of a proposed amendment to the Urban Dev of 1966.

As Senator Robertson just indicated, on my for rig mayor, Mr. Wheeler. To my right is Mr. Henley, exec of our Roanoke Redevelopment Land Authority. And our city manager, Mr. Julian Hirst.

The amendment to which I speak and support wou city of Roanoke, through its redevelopment and housing apply the cost of our proposed civic center for Roan grant-in-aid. The Roanoke Civic Center is proposed to b the Commonwealth urban renewal project, Project UR the credit for the center as would be granted by the legis ment would apply to this urban renewal project.

May I, by way of introduction, briefly acquaint this with our city. Geographically, Roanoke is situated westerly portion of Virginia. We have a corporate ] slightly over 100,000, an immediate metropolitan popu