Senator Clark on May 9, 1960. The latter section 4 (e) provides for amendments that would take account of the clarifying proposals submitted by the American Council on Education; including a provision which would qualify assistance received from State agencies as local grant-in-aid credits. On behalf of the University of Pennsylvania, I wish to thank you for the opportunity that has been afforded by this hearing to present this statement. STATEMENT OF DR. ALLEN T. BONNELL, VICE PRESIDENT, THE WEST PHILADELPHIA CORP.; VICE PRESIDENT, DREXEL INSTITUTE OF TECHNOLOGY, PHILADELPHIA, PA. I am appearing in behalf of two organizations: the West Philadelphia Corp. and Drexel Institute of Technology. The West Philadelphia Corp. is a nonprofit development corporation established to insure the preservation and attraction of educational, cultural, health, and professional institutions of the highest order; and the protection, rehabilitation, and further development of residential areas enhanced by adequate schools, churches, recreational facilities, and public services. Five major institutions were responsible for founding the corporation on July 9, 1959. These institutions are: Drexel Institute of Technology, the University of Pennsylvania, Presbyterian Hospital, the Philadelphia College of Osteopathy, and the Philadelphia College of Pharmacy and Science. Dr. Gaylord P. Harnwell, president of the University of Pennsylvania, is president of the corporation. The corporation area accounts for a population of 101,362. There are 35,000 dwelling units in the area, of which 27 percent are owner occupied. The five founding institutions enroll 27,000 persons and employ an additional 11,000 persons in various capacities. There are 11 private nursing homes in the corporation area, 9 parochial schools, 6 public schools, 3 private schools, 7 specialized homes and institutions, 29 churches and convents, and 7 major hospitals. There are eight active neighborhood civic associations with progressive programs of neighborhood conservation. The corporation founding institutions anticipate extensive improvements and expansion. In view of this I have been asked by the corporation to speak a word in behalf of strengthening section 112 of the Housing Act of 1949 as amended in 1959. Specifically this is the provision dealing with urban renewal areas involving colleges or universities. This amendment made it possible for the existing program of title I Federal loans and grants to local public agencies for slum clearance and urban renewal to expedite the urgently needed expansion of the Nation's urban colleges and universities. Just as important, the amendment makes it possible to establish, in the areas immediately adjacent to college and university campuses, a neighborhood environment which is wholesome and enhances the proper functioning of such institutions. Therefore, on the behalf of the West Philadelphia Corp. I would like to request the subcommittee's consideration of the following points which, in our opinion, would make section 112 operate more effectively: 1. We strongly recommend that hospitals be made eligible in the provisions of section 112. In this regard, the corporation supports Senate bill 3458 introduced by Hon. Joseph S. Clark on May 2, 1960. It is very clear to us that the total environment of an area like West Philadelphia cannot be protected and improved unless the seven hospitals in the area participate fully in the rehabilitation and development of our immediate area. Further, the relationships between hospital facilities, teaching functions of our institutions, and research facilities grow closer with every passing month. Therefore, it would seem logical to recognize these relationships in the Federal programs of aid affecting expansion and development. 2. Pennsylvania has created a general State authority which has the power to acquire land and construct thereon improvements needed by universities and medical colleges receiving State aid. Under section 112 of title I, as amended in September 1959, the expenditures made by the general State authority for the acquisition of land are not clearly eligible even when made for the educational uses of an eligible educational institution as provided in section 112. We believe this is only an oversight of language and not of intent. Therefore, we recommend that section 112 be further amended to grant eligibility to expend itures made by any public authority established by any State under the conditions and for the provisions outlined in section 112. It may be of interest to the members of the subcommittee to know that the five founding institutions of the corporation have in the last 5 years purchased lands in the amount of $2,851,707. It is our expectation that the next 5 years will equal or surpass that amount. In addition, through informal sources we have learned that the hospitals in our area plan to expend close to $2 million in the next 5 years for land acquisition and related improvements. A large part of our area has already been certified as a redevelopment area and is now under preliminary study. The corporation and its institutional members are expending funds and staff effort to cooperate with the local public agencies to carry out the best possible land reuse plans for the area. On behalf of the corporation and my own institution, Drexel Institute of Technology, I wish to extend sincere thanks for allowing me to present these views. Mr. CASH. The subcommittee will recess until Monday at 10 o'clock. (Whereupon, at 1:20 p.m., the committee recessed, to reconvene at. 10 a.m., on Monday, May 23, 1960.) HOUSING LEGISLATION OF 1960 MONDAY, MAY 23, 1960 U.S. SENATE, COMMITTEE ON BANKING AND CURRENCY, SUBCOMMITTEE ON HOUSING, The subcommittee met, pursuant to recess, in room 5302, New Senate Office Building, at 10:07 a.m., Senator John Sparkman (chairman of the subcommittee) presiding. Present: Senators Sparkman, Clark, Williams, Muskie, and Bush. Also present: Senator Engle. Senator SPARKMAN. Let the subcommittee come to order, please. Our first witness this morning is the Honorable Richard C. Lee, mayor of New Haven, Conn. Mayor Lee, we have had the privilege of having you before us on previous occasions, and you have always given us helpful information. We welcome you again. You proceed in your own way. STATEMENT OF RICHARD C. LEE, MAYOR, NEW HAVEN, CONN.; ACCOMPANIED BY HAROLD GRABINO, AMERICAN MUNICIPAL ASSOCIATION Mayor LEE. Mr. Chairman, members of the committee, my name is Richard C. Lee. I am mayor of the city of New Haven. I am testifying here this morning as mayor of New Haven and on behalf of the American Municipal Association as chairman of its urban renewal committee. The American Municipal Association represents more than 13,000 municipalities from all regions of the country. Its members have given a great deal of time and thought to considering the urban renewal and related programs of public housing, FHA housing insurance, and highway construction. I would like to submit for the record at this time a copy of the 1960 legislative recommendations of the AMA. Senator SPARKMAN. That will be received. (The material referred to follows:) THE NATIONAL MUNICIPAL POLICY, AMERICAN MUNICIPAL ASSOCIATION * 14. HOUSING Every person should have a decent home. The greatest number of homes are in cities and most of the people live in cities. Decent homes tend to make good citizens. Good homes are the best basis for an economically sound and socially desirable city. The municipal government, in cooperation with other governments, controls the conditions upon which homes are constructed. Homebuilding can be encouraged or discouraged by municipal government activities. Municipal support for decent homes should be an active and not a passive part of community activity. Municipal governments, on a national scale, should lead a movement to provide good housing for all the people. Municipal governments through their organizations should support, in principle, all reasonable efforts to provide and improve the housing of urban dwellers. We therefore resolve: Public housing 14-1. The 1950 census revealed that there were 10 million substandard nonfarm housing units. President Eisenhower's Advisory Committee on Government Housing Policies and Programs pointed out that local governments with their limited taxing powers are not in a position to provide standard housing for the low- and middle-income groups in our population. Private enterprise has also failed to provide adequate shelter for these income groups. Public housing was designed to serve a cross-section of families having low incomes and living in substandard shelter, not through choice, but because they could not afford standard housing provided through normal private channels. That basic purpose must be continued, although more emphasis is required on the specialized needs of the large family, the senior citizens, and the fatherless family. There is particular need for adequate guidance, counseling and social work services to assist families with adjustment to urban life and to treat the needs of problem families. There is also a need for adequate protective services, particularly in large-scale projects. Efforts should be made to integrate public housing into the normal total community making use of rehabilitated homes as well as new structures. In size and scope it should be adequate not only for those needs but to provide relocation housing for families that are being displaced through urban renewal and highway program activities. We urge that the time limits for communities to use their public housing commitments be extended whenever possible and that unused units not be dropped from the total authorization for the program but instead be made available to other cities. The local program should be adequate in size and scope to meet normal demands as well as peak demands of families displaced by urban renewal, the highway program and other public actions. Cities should continue to seek greater local autonomy in planning, developing, and managing the public housing program to fit local conditions. The public housing program should be strengthened by restoring the original authorization for the total number of units set forth in the 1949 act. Housing in built-up urban areas 14-2. American cities desperately need more middle-income housing. This is supposed to be one of the prime responsibilities of FHA. Yet the amount of FHA insured new sale or rental housing in built-up urban areas is insignificant. Current federally aided financing and mortgage insurance programs do not meet the needs of families most in need of housing. A large portion of these families are provided for neither in the home ownership nor in the rental housing programs of the Federal Government. Not only low-income families but even moderate income families are having great difficulty in obtaining new homes within their means. In order to better serve the housing needs of families in the middle income range, and in order to better meet the need for a comprehensive Federal housing program to meet effectively the Nation's total housing requirements, an effective program, including a direct Government loan to the extent necessary to make good homes available to middle income families at costs they can afford, is essential. The Congress is urged to initiate such a middle income program without further delay. The amount of rehabilitated housing with FHA insurance under sections 220 and 221 is negligible. FHA has failed to make broad scale rehabilitation of an effective instrument in renewing our cities. A prompt administrative and legislative review of the reasons for this failure are urgently needed. Federal debenture insurance for rental housing 14-3. The Congress is urged to enact legislation which will assist in the financing of new rental housing by authorizing the development and use of a |