PRIORITIES AND ADVISORY COMMITTEES SEC. 302 301. (a) The Federal Housing Commissioner and + Home Finance Administrator shall jointly Secretary shall, pursuan prescribed by them him for this purpose after consultation w General of the Public Health Service with respect to the heal matters involved, establish criteria and procedures for determin the insuring of mortgages under title XXI of the National Hous making of loans to eligible applicants under title II of this Act i the funds available therefor are insufficient to insure or lend in requested in applications otherwise approvable, which criteria shal in the case of applications involving facilities to be located in sma and in the case of applications of agencies or organizations descr graph (A) or (B) of section 1007(4) 1105 (3) of the National Ho are public or nonprofit organizations as defined in section 1007(5) Act, and in such other cases as they he may deem appropriate and the purpose of this Act. (b) The Commissioner and the Administrator Secretary shall a regard to the civil service laws, an advisory committee or comm in whole or in part of physicians, dentists, and consumer represen and consult with them him with respect to carrying out their his this Act and title XI of the National Housing Act. Memb advisory committee who are not full-time employees of the Uni while attending meetings or conferences of such committee or ot on business of such committee, receive compensation at a rate ministrator Secretary, but not exceeding $100 per diem, includ and while away from their homes or regular places of business they travel expenses, including per diem in lieu of subsistence, as au (5 U.S.C. 73b−2) for persons in the Government service employe ADMINISTRATION SEC. 303 302. (a) At the request of individuals or organiz or contemplating the operation of group practice facilities (as d 1007(2) 1105(1) of the National Housing Act), the Federal H sioner or the Housing and Home Finance Administrator Secret or obtain by contract or otherwise technical assistance in the p construction of such facilities. (b) With a view to avoiding unnecessary duplication of ex facilities of the Federal Government, the Federal Housing C the Housing and Home Finance Administrator are Secretary is aut available services and facilities of any agency of the Federal carrying out the provisions of this Act and title XXI of the N Act, and to pay for such services and facilities, either in advan reimbursement, in accordance with an agreement between either the Secretary and the head of such agency. AMENDMENTS TO OTHRTEDERAL LAWS CONFORMING AME SEC. 304 303. (a) (1) The sixth sentence of paragraph "Sev 5136 of the Revised Statutes, as amended (12 U.S.C. 24), is amer after "Federal Home Loan Banks," the following: "or obliga insured by the Federal Housing Commissioner Secretary under National Housing Act". (2) The third sentence of the first paragraph of section 2 Reserve Act, as amended (12 U.S.C. 371), is amended by in sections 1471-1484 of title 42," the following: "or which are Federal Housing Commissioner Secretary pursuant to title X X Housing Act,". (b) Subsection (a) of section 304 of the Trust Indenture U.S.C. 77ddd) is amended by striking out the word "or" at the (8); by striking out the period at the end of paragraph (9) and thereof a semicolon and the word "or"; and by adding after par paragraph as follows: (10) any security issued under a mortgage or trust d to which a contract of insurance under title X XI of the Act is in effect; and any such security shall be deemed to HOUSING LEGISLATION OF 1966 195 the provisions of the Securities Act of 1933 to the same extent as though such security were specifically enumerated in section 3(a) (2), as amended, of the Securities Act of 1933 (15 U.S.C. 77c(a) (2)).” (c) Section 263 of chapter X of the Bankruptcy Act (11 U.S.C. 663) is amended by adding at the end thereof the following: "Nothing contained in this chapter shall be deemed to affect or apply to the creditors of any corporation under a mortgage insured pursuant to title XXI of the National Housing Act." (d) Section 212(a) of the National Housing Act is amended by adding at the end thereof the following new sentence: "The provisions of this section shall also apply to the insurance of any mortgage under title XI." (e) Section 227 of the National Housing Act is amended by inserting in the first sentence of the introductory text after "or rehabilitated multifamily housing" the following: "or a property or project under title XI”. Senator DOUGLAS. HUD as well as HEW are in agreement? Was there not a character in a novel who was called "Hud"? Mr. COHEN. Yes, there was. I don't know of any character in a novel called "HEW." Senator DOUGLAS. I want you to "HEW" to the straight line. [Laughter.] Thank you very much. The next witness is Mr. Troy Norris, accompanied by Mr. O. R. Smith, Jr., and James Billingsley. We are very happy to welcome you here. STATEMENT OF TROY NORRIS, CHAIRMAN, CORINTH (MISS.) URBAN RENEWAL COMMISSION; ACCOMPANIED BY 0. R. SMITH, JR., ATTORNEY, AND JAMES BILLINGSLEY, DIRECTOR OF NEIGHBORHOOD YOUTH CORPS, CORINTH, MISS. Mr. NORRIS. Thank you very much. Senator DOUGLAS. We will listen to your statement. As I say, I must leave at noon because of some very vital bills on the floor. Mr. NORRIS. Yes, sir. Mr. Chairman, distinguished members of the Senate Housing Subcommittee, testifying with me today is the Corinth Urban Renewal Commission attorney, O. R. Smith, Jr., and also James Billingsley, director of the Corinth Neighborhood Youth Corps. If there are any questions during the reading of the prepared statement, please do not hesitate to interrupt me, and we will attempt to answer your questions. As chairman of the City of Corinth Urban Renewal Commission, I would like to present the following testimony. Corinth, Miss., is a typical small southern community and is located in northeast Mississippi 50 miles west of Florence, Ala., and 90 miles east of Memphis, Tenn. Our population is 13,870 people with a Negro population of 13.2 percent. The change of population in the surrounding area from 1950 until 1960 was minus 6.9 percent. The median family income a week is $35.86 and 41.2 percent of all the families have income under $3,000 per year. The highest median school year completed is 9.6 years, and 40 percent of all the housing is substandard. The purpose of the testimony today is done with the intent of sharing with you the successes, the problems, and the possible failures that have occurred in the city of Corinth by attempting to coordinate a broad spectrum of Federal programs with State and local efforts. President Lyndon Johnson in his January 26 messag said: From the experience of three decades, it is clear to me that require a program that will Concentrate our available resources-in planning tools, struction, in job training, in health facilities, in recreation, grams, in education-to improve the conditions of life in u Join together all available talent and skills in a coordina Mobilize local leadership and private initiative, so that lo determine the shape of their new city ***. Corinth has done all that it can do to accomplish th tives as outlined by the President. I believe that the f mony will indicate that the only ingredient now missin program is interdepartment and interagency coordinat level. Senator, I would like to summarize this, but I woul my statement for the record. Senator DOUGLAS. Yes; the statement will be receive in the record, and we will study it. It is just this unf have got to help conduct debate at 12 o'clock. Mr. NORRIS. Yes, sir; I understand that, sir. Basically, Corinth is a small community that som worked with a group of Federal agencies in Washing a broad approach to community development. The F included the Department of Labor, Health, Education Commerce, and the Housing and Home Finance Agency We have urban renewal programs, OEO programs, Youth Corps programs. Really, it is the broad spect programs used to attack the cause of the poverty an city. Possibly we are one of the few small communities States that has been fortunate enough to be able to ut concept of programs. However, we have run into several problems, and th of coordination on the Federal level. As we acquired for our community, it became more and more difficul the Federal Government. We found there were age jealous of each other. If their program was not the program, then they would almost drop out of sight and to cooperate as fully as possible. However, one agency did work very closely with their help we would not have had a program. That i partment's Neighborhood Youth Corps. Then there were key people in Housing and Home that would talk with us and understand what we we and they helped move our program. Senator DOUGLAS. Do you have any recommendatio Mr. NORRIS. Yes, sir. There are a lot of small com the United States that have problems, and it is very d communities to know who to contact and how to stat and to get good effective action to help deal with these You know a smaller community doesn't have the r noke, Va., New York City, and Atlanta, Ga., and it i to really be able to acquire the resources. HOUSING LEGISLATION OF 1966 197 Senator DOUGLAS. Senators and Congressmen fulfill these functions in part? Mr. NORRIS. Yes, sir. Senator DOUGLAS. I suppose that a large part of the work in my office is trying to assist localities. Some States have established State representatives. For instance, my State has a representative, formerly my assistant on these subjects. Mr. NORRIS. Yes, sir. Senator DOUGLAS. And I agree that there are a wide variety of agencies. Mr. NORRIS. Senator, may I make one statement? Senator DOUGLAS. Yes. Mr. NORRIS. At certain times in our program it was extremely difficult to work with certain Federal agencies because of preconceived concepts. Senator DOUGLAS. Difficult to work with what? Mr. NORRIS. To work with various Federal agencies because of preconceived concepts. And being that we are from Mississippi, there were a lot of these preconceived concepts. However, we are really in the hill country of Mississippi, in the Tennessee Valley, and the people there are very, very progressive and liberal and really have done a very fine job. This is really why we wanted to present our testimony, because very few small cities have the opportunity to come and to state their cases. Senator DOUGLAS. What would your recommendation be? Mr. NORRIS. My recommendation would be, and in part it happened in Corinth, that cities officials be able to sit down with Federal officials. You see, there are conflicting guidelines, Senator. One agency will come in, and they will investigate civil rights. Then they will come in and send their auditors. Then they will come in with program people, and they will make recommendations. The community will move upon these recommendations. Then another agency will send in their group of people. Their recommendations sometimes are in conflict with the first agency. So a small community does not have the resources or maybe the ability to be able to react. Senator DOUGLAS. Have you dealt with Housing and Home Finance Agency, which has now become Housing and Urban Development? Mr. NORRIS. Yes, sir. Senator DOUGLAS. Have you ever had trouble with them? Mr. NORRIS. No, sir. They work very closely with us. In fact Mr. NORRIS. Yes, sir. Very cooperative. If it had not been for DHUD and the Labor Department, our programs probably would just have died. Senator DOUGLAS. Where has your problem come from? Mr. NORRIS. In most cases from the Office of Economic Opportunity. Senator DOUGLAS. And what has been the precise nature of your trouble? Mr. NORRIS. Well, in some instances OED felt like their program should be the only program. And, of course, there were many, many CHE 198 HOUSING LEGISLATION OF 1966 more problems which involved the poor. In fact, the po to have housing. They need job training. And there flict concerning representation of the poor than prog Senator DOUGLAS. It is not in the jurisdiction of thi probe too deeply into that. Have they wanted you to a which you did not want to adopt? Mr. NORRIS. NO. It was just absence of guidelines grams with. Really the reason we mention OED is we were real about the demonstration cities program where you wou range of Federal programs to help the poor. Senator DOUGLAS. Does anyone else wish to add anyth Mr. SMITH. I might say that our experience in this that we feel that we need more programs to be able to be that we are trying to help and that our difficulty has cc enough about the programs that are available to rez problems on a broad basis. Senator DOUGLAS. In other words, you are not oppos ing with the Federal Government? You would like the agencies are that you are to cooperate with? Mr. SMITH. That is correct. Mr. NORRIS. Yes. Mr. SMITH. We feel we need to have a broader ba the problems and not just the few programs that we do the problems that we are trying to solve. Senator DOUGLAS. It has always seemed to me tha handbook should be prepared of the facilities availal I thought that there was such a handbook. Mr. SMITH. There are really too many handbooks. Senator DOUGLAS. Mr. Coan informs me that there is Mr. SMITH. There are too many handbooks developvolved in too much redtape. Senator DOUGLAS. Let's take one. Mr. Coan, can copies of the most appropriate handbook to this gentl Mr. COAN. I would be glad to do it. Senator DOUGLAS. I agree with you there is great Mr. NORRIS. Senator, we have the handbooks. We munity move very well in these programs because w benefit and the knowledge of some people. In fact, t chairman of this committee, is my cousin. He has hel many ways. But we come as representatives of ma communities who have equally or more pressing probl Senator DOUGLAS. I will ask Mr. Coan to send co proved pamphlet to any community that wishes it. W it upon them, but any community that wishes it. Mr. COAN. I would be glad to do it, but this does whole problem. There is a critical need for profess to help the small city develop a program to make Federal assistance. Mr. NORRIS. You see, Corinth is practically the on the United States that over the period of the last 2 year |