HOUSING LEGISLATION OF 1966 19 building techniques and methods. As I understand it, we have appro- I would like to have you give me a statement of the amounts which Mr. WEAVER. I would like to have the record show, Senator, that Senator DOUGLAS. Would you furnish for the record the amount of (The information follows:) THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT, Hon. PAUL H. DOUGLAS, Washington, D.C. Washington, D.C., May 16, 1966. DEAR SENATOR DOUGLAS: I appreciate your interest in section 106 of the Housing and Urban Development Amendments (S. 2978) which would authorize a new program to encourage and assist in the application of advances in technology to housing and urban development. You may recall, that during the hearings on the Administration's housing and urban development legislation you requested that there be submitted for the record a statement of the amounts appropriated, and the activities carried on, under previously authorized programs for urban studies and housing research. A copy of the material being submitted for the record is enclosed. The enclosed history of the appropriations for previously authorized programs indicates that activities undertaken by us directly for the development and application of cost reduction techniques to housing and urban development have not been funded since 1954. The progress made since 1954 in the development and application to low- and moderate-income housing of cost reduction techniques has been incidental to other activities, particularly those carried on under the Low-Income Housing Demonstration Program authorized by section 207 of the Housing Act of 1961. For many years now, Federal programs to stimulate the construction of housing for low- and moderate-income families have concentrated on financing mechanisms. The term of the mortgage has been lengthened considerably; down payments have been reduced, and, by several methods, the interest rate has been subsidized. These efforts have helped provide decent housing for low- and moderate-income families. However, I believe much can be accomplished through a direct attempt to reduce housing costs by the application to the home-building industry of the great advances in technology that have taken place in recent years. The typical construction firm is too small to conduct its own research. While the structure of the housing industry provides pressure to reduce the costs of doing things the traditional way, there is little pressure for developing new methods. Section 106 of the Housing and Urban Development Amendments would enable the Department to seek appropriations to finance a program to apply existing technological advances to reduce the cost and improve the quality of low- and moderate-income housing to the benefit of t housing. The Department would not be engaged in basi technological improvements, but rather, would encou application of technological advances that have been ma in private industry-in effect, to help harness these ne improvement of housing and the betterment of urban lif also direct the Secretary to encourage and promote th and improved techniques by all segments of the housin ties, industries engaged in urban development activit public. You will be interested, I am sure, in the recent report mission on Technology, Automation, and Economic Pr out the need for application of technological advances t development programs, and recommends actions of the plate under section 106. A discussion of the need for a advances to the improvement of the urban environment, ence to transportation, air and water pollution, and hou pages 83-88 of the report, which is enclosed. As to the previously authorized programs, title III of 1948, while primarily concerned with efforts to standa and regulations and their administration, did finance to develop and apply cost reduction techniques. Unde reducing practices were identified which had great in the almost universal use of prefabricated roof trusse gables for single-family homes. The savings to the con spread application of these techniques has far exceed have been appropriated for all Government housing r As the attached material indicates, the first Indepe priations Act of 1954 ordered the liquidation of this 30, 1954. Considerable opposition to the program had the basic research on materials aspects, which placed in the position of developing new housing materials and me Section 602 of the Housing Act of 1956 authorized st supply data concerning such matters as housing invent problems, availability of low- and middle-income hous elderly, and housing market characteristics. The emph is on the collection and dissemination of data as to the met and remaining unmet through the functioning of th Federal programs. It is not designed to stimulate cost In summary, existing programs do not permit us activities designed to develop and apply advances in t and urban development. While some significant cost ments were achieved under the program authorized Housing Act of 1948, that program has not been funded sin I believe there is a great opportunity to help the co moderate-income housing through the application of ad to housing construction and urban development activi fore, that section 106 of the Housing and Urban Deve I will be enacted so that we will have another tool to u construction of more and better housing for lowfamilies. FUNDS FOR RESEARCH IN IMPROVED BUILDING TECHNIQ Several times in the past, the Congress has authoriz undertake programs of technical research concerning ho related matters. Title III of the Housing Act of 1948, as amended by t Act of 1949, authorized financing of basic research prin standardize building codes-standardize dimensions a assembly of home-building materials and equipment. im sign and construction, new and improved types of hous ing materials and equipment. HOUSING LEGISLATION OF 1966 21 Considerable opposition to this program developed because of the basic research on materials aspects, which placed the Housing Department itself in the position of developing new housing materials and methods. The first Independent Offices Appropriations Act of 1954 ordered the liquidation of this program as of April 30, 1954. Section 602 of the Housing Act of 1956 did not contemplate the basic research approach of the earlier program (authorized by title III of the Housing Act of 1948). Instead it authorized the Housing and Home Finance Administrator to undertake research programs to develop and supply data concerning such matters as housing inventory, mortgage market problems, availability of low- and middle-income housing, housing for the elderly, housing construction and materials, and housing market characteristics. Attached is a history of the appropriation requests and actions under these two urban studies and housing research programs. Neither of these previously authorized programs is as broad as the one proposed by the Administration under section 106 of the Housing and Urban Development Amendments of 1966. Nor were they designed to finance the same sort of activities. Section 106 would provide specific legislative authorization and direction (and hopefully adequate funds) for research and studies designed to encourage the development and adaptation of technological innovations that would reduce the cost of housing and the costs of urban development. Under the proposed authority, specific efforts would be directed to study technological advances that are already being tried in practice on a limited scale and also to test and demonstrate techniques and methods incorporating technological innovations which have been developed. It is contemplated that insofar as tests and demonstrations are involved in the field of housing, complete housing systems or components which incorporate new materials susceptible to mass production would be tested and demonstrated. In addition, as such prototypes are developed, efforts would be made to ascertain the cost levels that could be reached with mass production. These procedures would greatly encourage the development of technological innovations by private industry. It is not intended that the proposed authority would be used to finance the development of new technology or new materials and products. This must remain the function of private enterprise. The work that would be carried on under the proposed authority would be planned and executed in close coordination with the working plans of the Building Research Division of the National Bureau of Standards, which develops, tests methods, design, criteria, and standards for materials, structural elements, building systems and buildings. The basic scientific knowledge that is developed at the National Bureau of Standards can be utilized in the tests of technological innovations that would be carried on under the proposed HUD program. SOME ACCOMPLISHMENTS UNDER PREVIOUSLY AUTHORIZED PROGRAMS This effort had a great deal of influence in leading to the almost universal has been more than a hundredfold the amounts that ha for all Government housing research efforts. Since the urban studies and housing research prog section 602 of the Housing Act of 1956, was revived on ing in fiscal year 1962, emphasis has been placed on necessary for policy and program guidance in the admi housing programs. This priority was necessary in order the Congress, as well as to inform the officials having the housing needs being met and remaining unmet thr of the private market and the present Federal programs. Two-thirds of the funds appropriated each year ha statistical series on the volume and prices of new hom provides monthly data on the number and price distr family homes sold or that remain unsold. Presently, expanded to cover new rental units, and characteristics both sales and rental new units to determine the inc being served. bubbly now 1% ORE 10 insu One study under this program analyzed mortgage f field surveys and interviews with families whose hor closed. The results of this survey were part of the basi for legislation enacted in 1964 to broaden the forbearanc eral Housing Commissioner. Another study dealt with the shell housing industry to product that buyers of incomplete homes were receivin costs, so that recommendations could be made which availability of more reasonable mortgage financing for b Another recently published study dealt with loan clos highlighted the practices which lead to high loan closi one of six cities in which the study was conducted.or Other studies included special tabulations of Census the living conditions of elderly families and individuals levels in each state and in each city of 100,000 or m The Low-Income Housing Demonstration Program a 207 of the Housing Act of 1961 has financed some de construction techniques that can produce low cost hous the appropriations for this program is attached. A demonstration being carried out by Pratt Institute the design of a prototype high-rise, low-rent apartme various techniques such as a utility core stamped from material, light steel frame construction, and walls and carry the load of floor slabs without the use of colum the report on this project is completed, it should prov in multi-family apartment construction of substantial Under another low-income housing demonstration g of California has recently completed 3 private houses i of California to demonstrate improved ways of provid income families who live in hot, dry areas of the U demonstration houses have recently been completed on City of Fresno. The pilot houses cost about $8,000 each quantity could probably be reduced to $6,000 each. In New York City, a system of housing rehabilitation combines advanced engineering techniques and the components. The cost target on rehabilitation work is unit. This compares to costs of $8,000 to $11,000 under Moreover, the rehabilitation will provide a better room 1 ceilings, new bathrooms and kitchens, new wiring and of the outside of the structure. A nonprofit organization of Michigan City, Indiana Inc.) has been given a grant for the design and demons ing" of factory-built dwellings to provide low-density, Occupancy by low-income families. Nine dwellings con cluster of apartments will be assembled. It is estimat can be completed at a per unit cost of approximately $9,350 Another grant has been made for an experimental pr puters would be used to find the most effective use of HOUSING LEGISLATION OF 1966 23 niques for the production of low-cost housing. It is expected to demonstrate that the computer will make it possible for the designer of housing to arrive at optimal combinations of choices for achieving a low cost for a housing unit of a given standard. There are two self-help projects being supported by a demonstration grant program to test self-help housing construction utilizing special techniques. One project will use stressed skin panels for houses erected for future occupants with the guidance of experts in Rapid City, South Dakota. Another calls for a total of 29 experimental houses to be built in three different geographical areas of Alaska for occupancy by the natives of that State. In one of these, a prefabricated, heavily insulated house will be built for a cold weather location. In all of these cases, time and cost studies and postconstruction studies will be prepared to provide a final report on the effectiveness of the methods. There are other demonstration projects under way as part of the lowincome Demonstration Program in addition to those which have been discussed. The Low-Income Housing Demonstration Program and the urban studies and housing research program, however, are not directed specifically at the development and adoption of technical innovations that would reduce the cost of housing. URBAN STUDIES AND HOUSING RESEARCH Summary of Housing Research Activity From 1948 to 1960 Housing Act of 1948.-Title III authorized a program limited to studies involving code improvement and standardization of dimensions. Housing Act of 1949.-Enlarged the scope of the program to cover housing technology and economics. Both the 1948 and 1949 Acts authorized the appropriation of such sums as might be necessary to carry out the provisions and purposes of the program. Housing research under the 1948 and 1949 acts1 nire l Val for b Thi d by t in was ed whic ssemblat dwel methods alls a -у гера Research e "stari sing fr aree-ster dwelling hich com and ted 189 research projects. Obligations * First IOAA of 1954 provided that: "* * not to exceed $125,000 shall be available for liquidation of the housing research program not later than April 30. 1954." Fiscal Years 1955-1956.-Nothing of interest. Fiscal Years 1957-1958.-Request of $175,000 for Census study relating to current and prospective housing market demand turned down by Congress. Housing Act of 1956 (Public Law 84-1020) Sec. 602 Fiscal year 1957. 1958. NOTE.-3d supplemental appropriation bill 1957-$970,000 (including $170,000 for administrative expenses) requested a 2-year program of "Housing Studies." Entire amount denied by House Appropriations Committee with suggestion that the 1958 portion be presented to the Senate committee, which was then considering the 1958 regular appropriations. Estimate of $920,000 (including $120,000 for administrative expenses) considered and approved by Senate committee. Conference committee struck out entire amount. |