SECTION 3. ADVANCED TECHNIQUES IN FHA HOUSING This section would require the Federal Housing Commissioner, in processing mortgage insurance applications, to give careful and sympathetic consideration to those where the residential properties are designed in accordance with advanced techniques to reduce unit cost without sacrificing quality or livability. It is assumed that this section is intended to permit the use of ideas for advanced design and technology on an experimental basis in housing with FHA mortgage insurance. This Agency would have no objection to a provision for this purpose which would limit the amount of insurance on such housing and provide that expenses involved would not be charged to the mutual mortgage insurance fund. It would also be necessary to waive "economic soundness" requirements now in the law. Section 3 of the bill would be inadequate for the above purposes. It would merely require sympathetic consideration of advanced construction techniques, which is already being given in the FHA programs and is one of the objectives listed in the "Declaration of National Housing Policy" and in the title of the National Housing Act. Another statement of this objective would seem to be ineffective except possibly to increase pressure for mortgage insurance in cases where it cannot be approved because of legal restrictions. The FHA encourages builders and architects to incorporate improved design, techniques, and materials which FHA has found acceptable in homes they propose to construct. Such encouragement is given in discussions after careful analysis of plans and specifications. The substantial progress in the field of community planning and land development is an example of the effectiveness of this form of counseling. The FHA's minimum property standards provide for the acceptance of conventional materials and methods of construction. These standards are supplemented by materials releases and engineering bulletins which provide for the acceptance of newly developed materials and methods of construction. Among these items, of course, there are many of advanced design utilizing advanced technology. The FHA has already issued over 380 materials releases on new or nonstandard materials and 260 engineering bulletins on new or special methods of construction. It may be noted that section 3 of the bill would apply "where such design and technology will reduce unit cost without sacrificing quality or livability." The section, inadvertently, appears not to apply to cases where, for the same unit cost, increase in quality and livability may be achieved. SECTION 4. FARM HOUSING This section of the bill deals entirely with the making of loans and contributions by the Secretary of Agriculture to families for farm homes and other farm buildings. As these functions are properly the concern of that Department rather than the Housing Agency, I have no comment on section 4 of the bill. We have been informed by the Bureau of the Budget that this report is without objection insofar as the Bureau is concerned. Sincerely yours, NORMAN P. MASON, Administrator. DEPARTMENT OF AGRICULTURE, Hon. A. WILLIS ROBERTSON, Chairman, Committee on Banking and Currency, DEAR SENATOR ROBERTSON: This is in reply to your request of April 19 for a report on S. 3379, a bill to establish an annual or biannual national housing goal, to provide for a research and study program to improve the quality of residential construction without increasing the cost thereof, to encourage advanced techniques in housing construction, and to continue the farm housing program under title V of the Housing Act of 1949. This Department is concerned with section 4 of S. 3379, which would extend the authorities of sections 502, 503, and 504 of title V of the Housing Act of 1949 until June 30, 1971. During the 10-year period beginning July 1, 1961, the Secretary would be authorized to issue notes and other obligations not to exceed $500 million for purchase by the Secretary of the Treasury for the purpose of making loans under sections 502 and 503. The amount used in any fiscal year would be limited to $50 million. The aggregate commitments to make contributions under section 503 could not exceed $20 million and not more than $50 million could be made available by direct appropriations during this 10-year period for loans and grants pursuant to section 504. This Department does not recommend favorable action on section 4 of S. 3379. There has been a substantial improvement in the quality of homes on farms in the past 15 or 20 years; nevertheless, there exists today an extensive need for further improvement of farm homes and facilities. The authorities of title V of the Housing Act of 1949 have been a valuable supplement to the contributions made by lending institutions such as banks, cooperative credit agencies, savings and loan associations, insurance companies, and material suppliers toward helping farm families finance the construction, modernization, and repair of their homes. The experience of this Department has been that farm home financing is an integral part of the total financial requirements of a farming business and, in many instances, better living facilities can be made available on an economically sound basis only if the family increases its level of income. To increase the family's income so that it can afford better housing may require enlargement of their farm, development of the land resources, or, in some cases, the acquisition of a new farm or refinancing of existing debts. Two bills; namely, S. 2144 and H.R. 7628, have been introduced in the Congress which would simplify, consolidate, and improve the authority of the Secretary of Agriculture to make loans to farmers and ranchers. Both of these bills would consolidate into one title the existing authorities to make real estate loans under title I of the Bankhead-Jones Farm Tenant Act, title V of the Housing Act of 1949, and the Water Facilities Act of 1937. The Department has reported favorably on these bills, not only because they would simplify the lending operations of this agency but, with respect to housing, the bills recognize the close relationship that exists between the income-producing ability of the family and the ability of the family to provide better housing. Hearings have been held on H.R. 7628 and, after the hearings, a revised bill, H.R. 11761, was reported on May 2, 1960. We believe that the provisions in title I of this bill will give adequate authority to meet the housing needs of farm families with both direct and insured loans. The Bureau of the Budget advises that there is no objection to the submission of this report. Sincerely yours, TRUE D. MORSE, Acting Secretary. [S. 3458, 86th Cong., 2d sess.] MR. CLARK A BILL Amending section 112 of the Housing Act of 1949 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 112 of the Housing Act of 1949, as amended through September, 1959, is amended (1) by striking out the title of such section and inserting in lieu thereof the following: "URBAN RENEWAL AREAS INVOLVING COLLEGES, UNIVERSITIES, OR HOSPITALS;" and (2) by amending section 112 to read as follows: "SEC. 112. In any case where an educational institution or a hospital is located in or near an urban renewal project area and the governing body of the locality determines that, in addition to the elimination of slums and blight from such area, the undertaking of an urban renewal project in such area will further promote the public welfare and the proper development of the community (1) by making land in such area available for disposition, for uses in accordance with the urban renewal plan, to such educational institution or hospital for redevelopment in accordance with the use or uses specified in the urban renewal plan, (2) by providing, through the redevelopment of the area in accordance with the urban renewal plan, a cohesive neighborhood environment compatible with the functions and needs of such educational institution or hospital, or (3) by any combination of the foregoing, the Administrator is authorized to extend financial assistance under this title for an urban renewal project in such area without regard to the requirements in section 110 hereof with respect to the predominantly residential character or predominantly residential reuse of urban renewal areas: Provided, That the aggregate expenditures made by such institution or hospital (directly or through a private redevolpment corporation) for the acquisition (from others than the local public agency), within, adjacent to, or in the immediate vicinity of the project area, of land, buildings, and structures to be redeveloped or rehabilitated by such institution for educational uses or by a hospital for hospital uses, in accordance with the urban renewal plan (or with a development plan proposed by such institution, hospital or corporation, found acceptable by the Administrator after considering the standards specified in section 110(b), and approved under State or local law after public hearing), and for the demolition of such buildings and structures (including expenditures to assist in relocating tenants therefrom), if, pursuant to such urban renewal or development plan, the land is to be cleared and redeveloped, as certified by such institution or hospital to the local public agency and approved by the Administrator, shall be a local grant-in-aid in connection with such urban renewal project: Provided further, That no such expenditures shall be deemed ineligible as a local grant-in-aid in connection with any such project if made not more than five years prior to the authorization by the Administrator of a contract for a loan or capital grant for such urban renewal project: And provided further, That the term 'educational institution' as used herein shall mean any educational institution of higher learning, including any public educational institution or any private educational institution, no part of the net earnings of which shall inure to the benefit of any private shareholder or individual; and that the term 'hospital' as used herein shall mean any hospital licensed by the State in which such hospital is located, including any public or nonprofit hospital, no part of the net earnings of which shall inure to the benefit of any private shareholder or individual. S. 3458 DIGEST OF BILL The Housing Act of 1959 added section 112 to the Housing Act of 1949, which section authorized Federal assistance to an urban renewal project, without regard to the predominantly residential requirement, where an institution of higher learning is located in or near a project and the local governing body determines that the project will assist the institution and further promote the public welfare and proper development of the community. Expenditures made by the institution in purchasing and clearing property within, adjacent to, or in immediate vicinity of the project can be counted as a local grant-in-aid. Credit is permitted for such expenditures made no more than 5 years prior to the loan and grant contract. S. 3458 would include "any hospital licensed by the State in which such hospital is located, including any public or nonprofit hospital, no part of the net earnings of which shall inure to the benefit of any private shareholder or individual" as an "institution" within the meaning of section 112. DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE, Hon. A. WILLIS ROBERTSON, Chairman, Committee on Banking and Currency, May 23, 1960. DEAR MR. CHAIRMAN: This letter is in response to your request of May 3. 1960, for a report on S. 3458, a bill amending section 112 of the Housing Act of 1949. This bill would extend to hospitals the provisions of section 112 of the Housing Act of 1949, which were added to that act by section 418 of the Housing Act of 1959 (Public Law 86-372). As you know, under section 112 as now in force, where an institution of higher learning is located in or near an urban renewal project and the local governing body determines that the project will assist the institution and further promote the public welfare and proper development of the community, (1) Federal assistance is authorized without regard to the "predominantly residential" requirement, and (2) there may be credited toward the required local grant-in-aid any expenditures of the institution (made not more than 5 years prior to the urban renewal loan and contract) in purchasing and clearing property within, adjacent to, or in the immediate vicinity of the project. In view of the responsibility of the Housing and Home Finance Agency for the administration of the urban renewal program, and in view of the importance of overall policy considerations involved in that program in determining the disirability of the present bill, we defer to the recommendation of the HHFA on this bill. The Bureau of the Budget advises that it perceives no objection to the submission of this report to your committee. Sincerely yours, ARTHUR S. FLEMMING, Secretary. [S. 3498, 86th Cong., 2d sess.] MR. BENNETT AND OTHERS A BILL To authorize use of additional funds, to the extent specified in appropriation Acts, for public facility loans Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 203(a) of the Housing amendments of 1955 is amended by striking out "in an amount not exceeding $100,000,000, notes and other obligations" and substituting "notes and other obligations in an amount not exceeding $100,000,000, which limit shall be increased by such amounts, not exceeding $100,000,000, as may be specified from time to time in appropriation Acts". S. 3498 DIGEST OF BILL Under existing law, the funds used by the Housing Administrator to make loans to communities for public facilities are borrowed by him from the Secretary of the Treasury. The present ceiling is $100 million, which will be exhausted upon completion of processing of applications now on hand. This bill would provide authorization for increases up to $100 million, to be made from time to time in appropriation acts, in the amount which the Housing Administrator may borrow for this purpose. Such future borrowings would be added to the existing revolving fund and would remain available and be used in the same manner as funds borrowed in the past. [S. 3499, 86th Cong., 2d sess.] MR. BENNETT AND OTHERS A BILL To authorize use of additional funds, to the extent specified in appropriation Acts, for the purchase of mortgages by the Federal National Mortgage Association under its special assistance program Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 305 (c) of the National Housing Act is amended by adding before the period at the end thereof ", which limit shall be increased by such amounts as may be specified from time to time in appropriation Acts". S. 3499 DIGEST OF BILL Under existing law, the FNMA borrows funds from the Treasury to purchase mortgages under its special assistance functions. These functions include the purchase of special classes of mortgages designated by the President. The existing ceiling is $950 million, of which approximately $180 million has not been allocated by the President. This bill would provide authorization for increases, to be made from time to time in appropriation acts, in the maximum amount of these mortgage purchases. Future borrowings from the Treasury to obtain funds for these purchases would be added to the existing revolving fund and would remain available and be used in the same manner as funds borrowed in the past. [S. 3500, 86th Cong., 2d sess.] MR. BENNETT AND OTHERS A BILL To amend title I of the National Housing Act Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2(a) of the National Housing Act is amended by— (1) striking out “on and after July 1, 1939, and prior to October 1, 1960”; and (2) striking out the last sentence of the first paragraph thereof. S. 3500 DIGEST OF BILL This bill would make the FHA title I home repair and improvement program permanent, and would remove the ceiling on the insurance authorization. Under existing law, the program expires on October 1, 1960, and the insurance that can be written under the program may not exceed $1.750 billion. [S. 3502, 86th Cong., 2d sess.] A BILL To extend and amend the National Housing Act, as amended, to provide mortgage insurance for individually owned units in a multi-family structure, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the National Housing Act, as amended, is hereby further amended by the addition of the following section 233 to title II, to read as follows: "SEC. 233. (a) PURPOSE.-The purpose of this section is to provide an additional means of increasing the supply of privately owned housing units where individual ownership of a one-family units which is part of a multi-family structure is authorized under the laws of the State in which the property is located. (b) DEFINITIONS.-The term 'mortgage,' 'mortgagee,' 'mortgagor', 'maturity date', and 'State' shall have the meanings respectively set forth in section 201 of the National Housing Act. “(c) GENERAL.-The Commissioner is authorized, upon application by the mortgagee, to insure as hereinafter provided any mortgage offered to him which is eligible for insurance as hereinafter provided, and, upon such terms as the Commissioner may prescribe, to make commitments for the insuring of such mortgages prior to the date of their execution or disbursement thereon. “(d) ELIGIBILITY CONDITIONS.-To be eligible for insurance under this section "(1) a mortgage shall involve a principal obligation in an amount not to exceed, for such part of the property as may be attributable to dwelling use $2,500 per room (or $9,000 per family unit if the number of rooms is less than four): Provided, That as to projects which consist of elevatortype structures the Commissioner may, in his discretion, incease the dollar amount limitation of $2,500 per room to not to exceed $3,000 per room and the dollar amount limitation of $9,000 per family unit to not to exceed |