DEMONSTRATION CITIES AND URBAN DEVELOPMENT MONDAY, FEBRUARY 28, 1966 HOUSE OF REPRESENTATIVES, Washington, D.C. The subcommittee met, pursuant to notice, at 10 a.m., in room 2128, Rayburn House Office Building, Hon. William A. Barrett (chairman of the subcommittee) presiding. Present: Representatives Barrett, Mrs. Sullivan, Ashley, Moorhead, Stephens, St Germain, Gonzalez, Reuss, Widnall, Fino, and Mrs. Dwyer. Also present: Representative Patman (chairman of the full committee), ex officio member, and Representative Annunzio of the full committee. Mr. BARRETT. The subcommittee will please come to order. Ladies and gentlemen, to lay marks the first step in the long legislative journey leading to the ultimate passage of what will emerge as the Housing and Urban Development Act of 1966. In our hearings, we will consider a number of bills, including but not limited to, first, H.R. 12341, the administration's demonstration cities bill; second, H.R. 12946, the Urban Development Act, to provide incentives for effective metropolitan planning and development recommended by the President's program; third, H.R. 13064, the administration's bill called the housing amendments of 1966, containing a number of amendments to the various government assisted housing programs; and fourth, H.R. 9256, the group medical practices facilities bill; and other pending bills. (H.R. 12341, H.R. 12946, H.R. 13064, and H.R. 9256 follow :) [H.R. 12341, 89th Cong., 2d sess.] A BILL To assist city demonstration programs for rebuilding slum and blighted areas and for providing the public facilities and services necessary to improve the general welfare of the people who live in these areas Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Demonstration Cities Act of 1966”. FINDINGS AND DECLARATION OF PURPOSE SEC. 2. The Congress hereby finds and declares that improving the quality of urban life is the most critical domestic problem facing the United States. The persistence of widespread urban slums and blight, the concentration of persons of low income in older urban areas, and the unmet needs for additional housing and community facilities and services arising from rapid expansion of our urban population have resulted in a marked deterioration in the environment of large numbers of our people while the Nation as a whole prospers. 1 The Congress further finds and declares that cities, both large and small, do not have adequate resources to deal effectively with the critical problems facing them, and that additional Federal assistance is essential to enable cities to plan, develop, and conduct programs to improve their physical environment, increase their supply of adequate housing for low- and moderate-income people, and provide educational and social services vital to health and welfare. It is the purpose of this Act to provide additional financial and technical assistance to enable cities, both large and small, to plan, develop, and carry out programs to rebuild or revitalize large slum and blighted areas and expand and improve public programs and services available to the people who live in such areas. It is further the purpose of this Act to provide the additional financial aid needed to enable cities to participate more effectively in existing Federal assistance programs. It is further the purpose of this Act to assist cities to coordinate activities aided under existing Federal programs with other public and private actions in order to provide the most effective and economical concentration of Federal, State, local, and private efforts to improve the quality of urban life. BASIC AUTHORITY SEC. 3. The Secretary of Housing and Urban Development (hereinafter referred to as the "Secretary") is authorized to make grants and provide technical assistance, as provided by this Act, to enable city demonstration agencies (as herein defined) to plan, develop, and carry out comprehensive city demonstration programs. COMPREHENSIVE CITY DEMONSTRATION PROGRAMS SEC. 4. (a) A "comprehensive city demonstration program" is a locally prepared and scheduled program for rebuilding or restoring entire sections and neighborhoods of slum and blighted areas through the concentrated and coordinated use of all available Federal aids and local private and governmental resources, including citywide aids and resources necessary to improve the general welfare of the people living or working in the areas. (b) A comprehensive city demonstration program is eligible for assistance under sections 6, 8, and 9 only if the Secretary determines that— (1) the program is of sufficient magnitude in both physical and social dimensions (i) to remove or arrest blight and decay in entire sections or neighborhoods, (ii) to provide a substantial increase in the supply of standard housing of low and moderate cost, (iii) to make marked progress in serving the poor and disadvantaged people living in slum and blighted areas with a view to reducing educational disadvantages, disease, and enforced idleness, and (iv) to make a substantial impact on the sound development of the entire city; (2) the rebuilding or restoration of sections or neighborhoods in accordance with the program will contribute to a well-balanced city with adequate public facilities (including those needed for transportation, education, and recreation), commercial facilities adequate to serve the residential areas. good access to industrial or other centers of employment, and housing for all income levels; (3) the program provides for educational and social services necessary to serve the poor and disadvantaged in the area, widespread citizen participation in the program, maximum opportunities for employing residents of the area in all phases of the program, and enlarged opportunity for work and training; (4) adequate local resources are, or will be, available for the completion of the program as scheduled : (5) administrative machinery is available for carrying out the program on a consolidated and coordinated basis, the local governing body has anproved the program, and local agencies whose cooperation is necessary to the success of the program have indicated their intent to furnish such Cooneration: (6) there exists a relocation plan meeting the requirements of the regulations referred to in section 9: (7) the program is designed to assure maximum opportunity in the choice of housing accommodations by all citizens: and (8) the program monte ench additional requirements as the Secretary may establish to carry out the purposes of this Act. (c) In making the determinations under subsection (b), the Secretary shall give maximum consideration to whether (1) substantive local laws, regulations, and other requirements are, or can be expected to be, consistent with the objectives of the program; (2) the program will enhance neighborhoods by applying a high standard of design and will, as appropriate, maintain distinctive natural, historical, and cultural characteristics; (3) the program is designed to make maximum use of new and improved technology and design, including cost reduction techniques; (4) the program will encourage good community relations and counteract the segregation of housing by race or income; and (5) the program is consistent with comprehensive planning for the entire urban or metropolitan area. FINANCIAL ASSISTANCE FOR PLANNING COMPREHENSIVE CITY DEMONSTRATION PROGRAMS SEC. 5. (a) The Secretary is authorized to make grants to, and to contract with, city demonstration agencies to pay 90 per centum of the costs of planning and developing comprehensive city demonstration programs. (b) Financial assistance will be provided under this section only if (1) the application for such assistance has been approved by the local governing body of the city, and (2) the Secretary has determined that there exist (i) administrative machinery through which coordination of all related planning activities of local agencies can be achieved, and (ii) evidence that necessary cooperation of agencies engaged in related local planning can be obtained. FINANCIAL ASSISTANCE FOR APPROVED COMPREHENSIVE CITY DEMONSTRATION PROGRAMS SEC. 6. (a) The Secretary shall review plans for comprehensive city demonstration programs in order to determine that (1) such plans satisfy the criteria for such programs set forth in section 4, and (2) the various projects or activities to be undertaken in connection with such programs are scheduled to be initiated within a reasonably short period of time. (b) The Secretary is authorized to make grants to, and to contract with, city demonstration agencies to pay 80 per centum of the costs of administering approved comprehensive city demonstration programs, but not the cost of administering any project or activity assisted under a Federal grant-in-aid program. (c) To assist the city to carry out the projects or activities included within an approved comprehensive city demonstration program, the Secretary is authorized to make grants to the city demonstration agency of not to exceed 80 per centum of the aggregate amount of non-Federal contributions otherwise required to be made to all projects or activities assisted by Federal grant-in-aid programs (as hereinafter defined) which are undertaken in connection with such demonstration program: Provided, That the amount of non-Federal contribution required for each project in a Federal grant-in-aid program shall be certified to the Secretary by the Federal department or agency (other than the Department of Housing and Urban Development) administering such program, and the Secretary shall accept such determination in computing the grants hereunder. (d) Grant funds provided pursuant to subsection (c) of this section may be used for projects or activities assisted under a Federal grant-in-aid program which are undertaken as part of an approved comprehensive city demonstration program, or for other projects or activities undertaken as part of such demonstration program. If used for projects or activities assisted under a Federal grant-in-aid program which are undertaken as part of such demonstration program, funds provided pursuant to subsection (c) shall be credited as part or all of the required non-Federal contribution to such projects or activities. (e) The Secretary shall not make any grant under this section unless he has obtained satisfactory assurances that the locality will maintain, during the period an approved comprehensive city demonstration program is being carried out, a level of aggregate expenditures for activities similar to those being assisted under this section not less than the level of aggregate expenditures for such activities prior to initiation of the comprehensive city demonstration program. OFFICE OF THE FEDERAL COORDINATOR SEC. 7. There shall be established for each locality having an approved comprehensive city demonstration program an office to be known as the Office of the Federal Coordinator headed by a director who shall be designated by the Secretary. The director shall perform such functions as the Secretary shall from time to time prescribe with respect to helping achieve the maximum effective coordination of Federal grant-in-aid programs undertaken in connection with comprehensive city demonstration programs. Nothing in this section shall be construed to vest in the Secretary any authority to exercise or delegate any function or duty vested by law in any department or agency of the Federal Government other than the Department of Housing and Urban Development. TECHNICAL ASSISTANCE SEC. 8. The Secretary is authorized to undertake such activities as he determines to be desirable to provide, either directly or by contracts or other arrangements, technical assistance to city demonstration agencies to assist such agencies in planning, developing, and administering comprehensive city demonstration programs. RELOCATION REQUIREMENTS AND PAYMENTS SEC. 9. (a) A comprehensive city demonstration program must include a plan for the relocation of individuals, families, business concerns, and nonprofit organizations displaced or to be displaced in carrying out the city demonstration program. The relocation plan shall be consistent with regulations prescribed by the Secretary to assure that (1) the provisions and procedures included in the plan meet relocation standards equivalent to those prescribed under section 105 (c) of the Housing Act of 1949 with respect to urban renewal projects assisted under title I of that Act, and (2) relocation activities are coordinated to the maximum extent feasible with the increase in the supply of decent, safe, and sanitary housing for families and individuals of low or moderate income, as provided under the comprehensive city demonstration program, or otherwise, in order to best maintain the available supply of such housing for all such families and individuals throughout the city. (b) To the extent not otherwise authorized under any Federal law, financial assistance extended to a comprehensive city demonstration agency under section 6 shall include grants to cover the full cost of relocation payments, as herein defined. Such grants shall be in addition to other financial assistance extended to such agency under section 6. The term "relocation payments" means payments by a comprehensive city demonstration agency to a displaced individual, family, business concern, or nonprofit organization which are made on such terms and conditions and subject to such limitations (to the extent applicable, but not including the date of displacement) as are provided for relocation payments, at the time such payments are approved, by sections 114 (b), (c), (d), and (e) of the Housing Act of 1949 with respect to projects assisted under title I thereof. (c) Subsection (b) shall not be applicable with respect to any displacement occurring prior to the date of the enactment of this Act. CONTINUED AVAILABILITY OF FEDERAL GRANT-IN-AID PROGRAM SEC. 10. Notwithstanding any other provision of law, unless hereafter enacted expressly in limitation of the provisions of this section, funds appropriated for a Federal grant-in-aid program which are reserved for any projects or activities assisted under such grant-in-aid program undertaken in connection with an approved comprehensive city demonstration program shall remain available until expended when so provided in appropriation Acts. CONSULTATION SEC. 11. In carrying out the provisions of this Act, including the issuance of regulations, the Secretary shall consult with other Federal departments and agencies administering Federal grant-in-aid programs. The Secretary shall consult with each Federal department and agency affected by each comprehensive city demonstration program before entering into a commitment to make grants for such program under section 6. APPROPRIATIONS SEC. 12. There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of this Act. Appropriations authorized under this Act shall remain available until expended when so provided in appropriation Acts. SEC. 13. As used in this Act DEFINITIONS (a) “Federal grant-in-aid program" means a program of Federal financial assistance other than loans and other than the assistance provided by this Act. (b) "City demonstration agency" means the city or any local public agency established or designated by the local governing body to administer the comprehensive city demonstration program. (c) "City" means any municipality (or two or more municipalities acting jointly) or, with respect to urban areas outside of incorporated municipalities, any county or other public body (or two or more acting jointly) having general governmental powers. (d) "Local" agencies include State agencies and instrumentalities providing services or resources to a city or locality, and "local" resources include those provided to a city or locality by a State or its agency or instrumentality. TERMINATION OF AUTHORITY SEC. 14. (a) This Act and all authority conferred thereunder shall terminate at the close of June 30, 1971: Provided, That the functions, powers, duties, and authorities vested in the Secretary under this Act may be retained by the Secretary for the purpose of liquidating the affairs and functions conducted under this Act. (b) The termination of this Act shall not affect the disbursement of funds under, or the carrying out of, any contract, commitment, or other obligation entered into pursuant to this Act prior to the date of such termination, or the taking of any action necessary to preserve or protect the interests of the United States in any amounts advanced or paid out in carrying on operations under this Act. [H.R. 12946, 89th Cong., 2d sess.] A BILL To provide incentives to planned metropolitan development and to otherwise assist urban development Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Urban Development Act”. TITLE I-GRANTS TO ASSIST IN PLANNED METROPOLITAN DEVELOPMENT FINDINGS AND DECLARATION OF PURPOSE SEC. 101. (a) The Congress hereby finds that the welfare of the Nation and of its people is directly dependent upon the effective organization and functioning of the metropolitan areas in which two-thirds of its people live and work. It further finds that the continuing rapid growth of these areas makes it essential that they prepare, keep current, and actually carry out comprehensive plans and programs for their orderly physical development with a view to efficiently meeting all their economic and social needs. It further finds that metropolitan areas are especially handicapped in this task by the complexity and scope of governmental services required in such rapidly growing areas, the multiplicity of political jurisdictions and agencies involved, and the inadequacy of the operational and administrative arrangements available for cooperation among them. It further finds that present requirements for areawide planning and programing in connection with various Federal programs have materially assisted in the solution of metropolitan problems, but that additional participation and cooperation are needed from the States and localities in perfecting and carrying out such areawide efforts. (b) It is the purpose of this title to provide additional encouragement and assistance to States and localities, through supplementary grants for certain |