Senator SPARKMAN. Senator Tower, you have som we start? Senator TowER. After your very excellent statem anything I would have to say would be like addin after the Sermon on the Mount, Mr. Chairman. [La Senator SPARKMAN. Our first witness this morni C. Weaver, Secretary of the Department of Housing velopment. Mr. Robert C. Wood, Under Secretary Haar, Assistant Secretary for Metropolitan Develop N. Brownstein, Assistant Secretary for Mortgage Cre sioner of the Federal Housing Administration; Mr. J man, President of the Federal National Mortgage Melvin Frasier, Acting Commissioner, Community I istration; Mrs. Marie McGuire, Commissioner, Pub ministration; Mr. Howard Wharton, Acting Commi Renewal Administration; and Mr. Ashley Foard, th Counsel also accompanying Dr. Weaver. We are glad to have all of you gentlemen and ge shall be pleased at this time to hear from you. Let m tary, you have quite a voluminous presentation here want all of this placed in the record, or is one of them Mr. WEAVER. One is a full statement, the other is a and I will read the short statement. Senator SPARKMAN. The full one is the long one. in full in the record. You may proceed with your STATEMENT OF ROBERT C. WEAVER, SECRETARY Mr. WEAVER. Mr. Chairman, members of the comm ure to be here to present the views of the administ and urban development legislation. The chairman people who are accompanying me. And he has ident are before us. I should like to submit for the recor ment on these bills, and a statement that gives the c data on our existing programs. (See p. 71.) The Department has submitted written reports (s a number of other housing and urban developmen sidered by the subcommittee, and I will be happy to tions you may have on those bills or our written re HOUSING LEGISLATION OF 1966 DEMONSTRATION CITIES ACT OF 1966 5 The demonstration cities bill is the most important proposal in the President's program for rebuilding America's cities. In his January 26 message to the Congress recommending the demonstration cities bill, the President said: From the experience of three decades, it is clear to me that American cities require a program that will Concentrate our available resources-in planning tools, in housing construction, in job training, in health facilities, in recreation, in welfare programs, in education-to improve the conditions of life in urban areas. Join together all available talent and skills in a coordinated effort. Mobilize local leadership and private initiative, so that local citizens will determine the shape of their new city * * The demonstration cities bill will make it possible for cities of all sizes to undertake such a program. This bill will help cities to plan, develop, and carry out comprehensive city demonstration programs. These are locally prepared programs for rebuilding or restoring entire sections and neighborhoods of slum and blighted areas. It will help cities provide the public facilities and services, including citywide aids, needed to enable the poor and disadvantaged people who live in these areas to become useful, productive citizens-citizens able to join in the general prosperity this Nation now enjoys. This bill will make it possible to improve and substantially increase the supply of adequate low- and moderate-cost housing in the cities. It will make it possible for cities to concentrate their educational, health, and social services on the problems of the large numbers of poor and disadvantaged people who live in slum and blighted sections and neighborhoods. It will make it possible to treat the human needs of people in the slums at the same time physical rehabilitation is being carried out. To qualify for assistance under this bill, a city must be prepared to plan and carry out a comprehensive city demonstration program. This will be a local program. It will be planned, developed, and carried out by local people. The character and content of the program will be based on local judgments as to the cities' needs. This bill will provide Federal funds to cover up to 90 percent of the cost of planning and developing the comprehensive city demonstration program. It will provide special Federal grants-supplementing assistance available under existing grant-in-aid programs to help carry out all of the activities included as a part of the demonstration program. The amount of these special, supplemental grants, will be equal to 80 percent of the local or State share of the cost of all projects or activities which are a part of the demonstration program and financed under existing grant-in-aid programs. I will soon explain more fully the provisions of this bill relating to these supplemental grants. But first, let me emphasize that it will not be easy to qualify for this assistance. This bill is designed to help cities willing to face up to their responsibilities-willing and able to bring together the public and private bodies whose joint action is necessary to solve their problems, willing to commit fully their energies and resources, willing to undertake actions which will have widespread and profound effects on the physical and social structure of the city. To qualify for assistance under this bill, a city's de gram must meet the following general criteria: First, it must be large enough to remove or arrest in whole sections or neighborhoods, to provide a su in the supply of adequate housing for low- and mod ple, to make a significant contribution to the provis social services for the poor and disadvantaged livi blighted areas, and to make a substantial impact on opment of the entire city; Second, the rebuilding or restoration of slums and and neighborhoods must contribute to a well-balanc quate public facilities; Third, the program must provide for widespread tion and maximum opportunities for using resid being rebuilt in the work of rebuilding; Fourth, adequate local resources must be available the program; Fifth, the local governing body must approve th local agencies whose cooperation is necessary to carry must be willing to furnish that cooperation; Sixth, there must be a plan for relocating, and ad sating, individuals, families, and business concerns program; and Seventh, all citizens must have maximum opportu of housing provided by the program. Finally, the city's demonstration program must statement of goals, it must be a definite plan of acti activities to be undertaken must be scheduled and re within a reasonably short period of time. In addition, we will expect a city which undertake program to take advantage of modern cost-reducing will expect a concern for good design and attention open spaces and attractive landscaping. A program meeting these criteria is not lightly nothing else will do. A total commitment of the energies and resources American city is necessary to stop the growing phys and the social alienation of disadvantaged groups co income ghettos. Two types of Federal assistance are available to projects or activities which are undertaken as a par comprehensive city demonstration program. First, the complete array of all existing Federal gra programs in the fields of housing, renewal, transpor welfare, economic opportunity, and related program able for the demonstration program. This bill contemplates that existing Federal gran and funds now available for those programs-will ing out projects or activities which, though part of city demonstration program, are eligible for assista able for the demonstration program. The fact that a particular project, eligible for gr isting Federal program, is undertaken as a part of program will in no way effect its eligibility under gram. The city will apply to the Federal agency HOUSING LEGISLATION OF 1966 7 the existing program, and the application will be subject to all the (1) assist cities to provide their required share of the cost of (2) provide funds to carry out other projects or activities undertaken as part of the demonstration program which are not funded under existing Federal grant-in-aid programs. The amount of this supplemental grant will be 80 percent of the total non-Federal contributions required to be made to all projects or activities assisted by existing Federal grant programs which are carried out as a part of a comprehensive city demonstration program. The supplemental grant funds authorized to be paid by the demonstration cities bill are not "earmarked" for any one part of the demonstration program. After the amount of this supplemental grant is established under the formula in the demonstration cities bill, the total amount is available to the city to be used at its discretion for any project or activity which is included as a part of an approved city demonstration program. The demonstration cities legislation calls for a newly concentrated and coordinated approach by the cities to their problems. It utilizes the full range of existing grant-in-aid programs for both physical and social development. The list of these programs is long. But there is a new and sharper focus of the activities assisted by these programs and for greater coordination in their use. This is a key goal of the demonstration cities legislation. In addition, the supplemental Federal grant funds provided by this bill will enable the cities to participate more effectively in existing grant-in-aid programs and will permit cities to experiment with needed activities which are not now funded by these existing programs. The ultimate success of this new program rests upon the ability of local people to assess their own most pressing problems and devise their own solutions to those problems. And the cities themselves, by their actions, will determine which of them participate in this program. Those cities which can concentrate their resources, identify their problem areas, and develop sound imaginative solutions will be the first aboard. But all cities will benefit from the solutions to urban problems developed through the demonstration cities approach. I am confident every city will ultimately use this "total attack" approach to solve its urban problems. The assistance provided by this bill will be given to cities of all sizes and in all parts of the country. This will enable the program to demonstrate the wide range of methods available to deal with the diversity of problems that face cities of all sizes throughout the country. The Federal assistance authorized by the demonstration cities bill will be provided to a "city demonstration agency." This may be the city or any local public agency established or designated by the local governing body to administer the comprehensive city demonstration program. For each area having an approved demonstration eral coordinator will be designated. This legislation makes it clear that the Federal co be appointed until after the demonstration program Federal coordinator will not, therefore, be involved in development of the city's demonstration program. The coordinator will expedite and help coordina butions and technical assistance to the various proj that are a part of the approved demonstration p provide liaison services for the local city demonst national and regional representatives of the Depar and Urban Development, and of other Federal agen projects or activities. The coordinator will have local officials, and no power over the programs an locality. The first year of the new program authorized b devoted to planning and the development of progr The President has earmarked some $12 million to fin and development of these programs. In the follo billion in supplemental grant funds will be made to help them carry out these demonstration programs The great problems confronting the Nation's citi Slums and blight are widespread. Persons of lo trate increasingly in the older urban areas. Housin facilities and services are inadequate. Cities are caught in a descending spiral which le municipal insolvency. The continuing spread of taxable value of city land. As slums and blight linquency, and disease follow. At the same time that the need for city service ability to provide these services is impaired by th creates the demand. In these circumstances, it is n the cities with the greatest slum problems have the solving them. The cities desperately need help. New metho must be developed to enable them to deal with the I believe this legislation is the cities' best hope. focusing and coordinating massive programs of tion and social services can revitalize the deterior cities. |