further believe that this program, if enacted, cannot stop with the initial demonstration cities. Every city faced with problems such as ours should be encouraged to develop an imaginative, comprehensive program of remedial action. All those cities demonstrating the need and the ability to participate should be permitted to do so. We fell that Waterbury is the type of city that could most benefit from a demonstration program and that could produce the most dramatic demonstration of community improvement. Our ambitions for Waterbury, however, can only be realized by dedicated effort on both the local and Federal level. We feel we have come a long way already. In a few short years, a climate of progress and change has developed in Waterbury. This new climate is ideal for the vast new programs contemplated in the demonstration cities program. Three important aspects of community attitude and change are particularly representative of this new climate. Urban renewal referendum.-On June 25, 1963, the people of Waterbury made known their faith in the city's urban renewal program. By an overwhelming margin they voted "yes" to the question "Are you in favor of urban renewal?" This expression of support was the result of an outstanding effort by local citizens to make known the benefits of urban renewal to the general public. This type of broad support is vital for the comprehensive program Waterbury wishes to accomplish. Highway construction.-Long removed from the main corridor of highway travel, Waterbury has fought and won the battle for a location on the State's new major highway network. As a result of a concerted effort by local officials and citizens alike, Waterbury is now at the hub of a highway system which provides direct access from all points of the compass. Route 84 (east-west) and Route 8 (north-south) will enable the city to compete for retail trade and industry with any city in the State. It was the foresight of Waterbury's leaders that convinced them of the need of this advantage. The city is attempting to maximize this advantage through its urban renewal program. Regional planning.—Waterbury is at the center of the central Naugatuck Valley region. The Central Nangatuck Valley Regional Planning Agency is a fully staffed and oprating regional planning agency which has ben performing a valuable service for the region since its formation 5 years ago. Its most unique achievement is the development of the first regional plan to be adopted in the country. Regional planing is a recognized function of government in Waterbury and has and will continue to play a role in the direction of community and regional growth. All new plans and programs developed by the city are undertaken within the coordinated framework of metropolitan development provided by the regional planning agency. In order to capitalize on the enthusiasm and support that has been generated for the local programs, prompt and vigorous action is required. Here in Waterbury we have made every attempt to maintain the pace that has been established. Despite a slow start in urban renewal activity, Waterbury has shown remarkable gains in the past several years. 1. Three projects already in execution have been brought close to completion. 2. A community renewal program (CRP) has been initiated to guide the city's total urban renewal effort. Although little more than half completed, the CRP has already demonstrated itself to be an extremely valuable tool and is becoming a recognized component of the city's overall development program. It has already resulted in the following steps. 3. On recommendations developed from the CRP, a new renewal project, Porter Street (R-101), was designated locally and has already received a survey and planning advance. Furthermore, an early land acquisition loan application has already been submitted and is being processed for this project. The entire project is to be devoted to moderate income 221(d) (3) housing and/or Statesponsored housing for the elderly. This new development is also expected to generate new vitality in one of Waterbury's "gray" residential neighborhoods. 4. Based on recommendations by both the CRP policy committee and the Redevelopment Agency, a major downtown project has been delineated and a survey and planning application already submitted. The central business district (CBD) project includes the major retail and governmental center of Waterbury and is intended to attack some of the city's most pressing problems on a scale which has heretofore been lacking. Waterbury's commitment to a massive program of community improvement is typified by this major under taking which includes over 90 acres of prime land and is anticipated to have a net cost of over $50 million. 5. Based on an analysis developed during the CRP, the city is initiating several unassisted renewal projects in undeveloped areas which were prematurely subdivided many years ago in a manner which precludes development now. These will be used as relocation resources for displaced industrial uses. 6. In addition to its regular welfare and education programs which have provided continuing service to the community, Waterbury boasts a citizen inspired, organized, and operated nonprofit agency established to administer programs of the Office of Economic Opportunity. New Opportunities for Waterbury, Inc. (NOW) has been operating for only a year, but has already made a significant contribution to the lives of many disadvantaged families. We are making every effort and will continue to make new efforts to provide our citizens with better housing, more social services, broader educational programs, expanded community facilities, and increased amenities of urban life. However, we believe it will be extremely difficult, if not impossible, to achieve our desired and necessary rate of progress under the present system of administration and financial aid. We cannot shirk our obligations to our citizens and we welcome the challenge of more comprehensive, more ambitious methods to achieve our goals. Therefore, we in Waterbury urge you to provide us and cities like us with every possible assistance. We feel the demonstration cities program can be one of our most valuable tools to achieve our task. STATEMENT OF CLARENCE W. BIRD, DIRECTOR, NATIONAL ECONOMIC COMMISSION, THE AMERICAN LEGION Mr. Chairman and members of the subcommittee, I appreciate the opportunity to express the view of the American Legion in connection with H.R. 11858. The American Legion's support of H.R. 11858 is based on resolution No. 577, adopted by our 1965 national convention. A copy of resolution No. 577 is attached. The Housing and Urban Development Act of 1965, provided, among other things, a special Federal Housing Administration insured housing loan program for all honorably discharged servicemen (including war veterans). There is no limitation in the law as to the number of times an eligible serviceman may avail himself of these special Federal Housing Administration loan benefits, except in the case of a veteran who has previously utilized his entitlement under the Veterans' Administration's home loan program. In his case he is barred from any benefit under existing law. It is the position of the American Legion that this discriminates against certain war veterans. H.R. 11858 will eliminate this unwarranted discriminatory provision under the present Federal Housing Administration law and will give all qualified veterans the same advantage in applying for the liberalized mortgage financing terms as granted other servicemen. Mr. Chairman, we thank you for this opportunity to comment on H.R. 11858 and hope that prompt, favorable action will be taken. FORTY-SEVENTH ANNUAL NATIONAL CONVENTION OF THE AMERICAN LEGION, PORTLAND, OREG., AUGUST 24-26, 1965 RESOLUTION 577 Committee: Economic. Subject: Veterans home loans. Whereas, the Housing and Urban Development Act of 1965, amended section 203(b)(2) of the National Housing Act to provide for an FHA insured housing loan program for all honorably discharged veterans of active duty in the Armed Forces of the United States; and Whereas, such act provides that this benefit shall not be available to World War II and Korean conflict veterans who have received their benefits under the VA housing program; and Whereas, there is no limitation as to the number of home loans eligible veterans may obtain under the FHA veterans insured loan provisions; and Whereas, this discriminates against World War II and Korean conflict reterans which is entirely unwarranted and places peacetime veterans in a more favorable position than wartime veterans: Now, therefore, be it Resolved by the American Legion in national convention assembled in Portland, Oreg., August 24-26, 1965, That section 203(b)(2) of the National Housing Act, as amended, by the Housing and Urban Development Act of 1965, be further amended to eliminate that provision which bars benefits under the VA housing program from obtaining FHA insured veteran home loans. [Telegram] Hon. Wм. H. BARRETT, CHICOPEE, MASS., March 2, 1966. Chairman of the House Banking and Currency Committee, Subcommittee on Housing, House of Representatives, Washington, D.C.: The city of Chicopee, Mass., desires to be recorded favoring enactment of the Demonstration Cities Act of 1966. Chicopee is an old industrial city of 60,000 people divided into five distinct sections through immigration, sociological, ethnic, and economic impacts and 19th century factory-owned housing for millhands. We urge enactment of this program as a desirable opportunity to attack and solve vital areas of concern to our people, their health, environment, and opportunity, both economically and culturally. RICHARD H. DEMERS, STATEMENT BY JAMES J. FLYNN, JR., MAYOR OF PERTH AMBOY, N.J., TO HOUSE SUBCOMMITTEE ON HOUSING Mr. Chairman, I urge that Perth Amboy be selected as a demonstration city under the administration's proposed legislation. I believe that Perth Amboy would be ideal to prove the purposes of the program advocated by the administration. While our city is still strong and secure, our population has decreased and has dropped to an estimated 34,000 from about 45,000. Our business district, which consists of older buildings, has suffered the dilemma of every city surrounded by shopping centers. Our young people, who do not find it necessary to reside near the great industries in our city, have moved to the suburbs and we have been struggling. We have justifiable pride in Perth Amboy: the city has a fine hospital that serves the entire area. We have a YMCA, a YMHA, a Salvation Army facility, and 48 churches of every denomination. We have a good public school system, seven parochial schools, and a parochial high school. We have a boardwalk and waterfront recreation area, a yacht club, and a marina. We are a center of for professional activities-medical legal-used by the entire Raritan Bay area. A respected and successful newspaper serves the area. Our banks and savings and loan facilities have grown steadily. Our industries are prosperous and employ over 12,000 persons. They are diversified and include some of the most renown names in America. We are proud of Perth Amboy, which was founded 302 years ago on the shore of Raritan Bay. We had a great influx of heavy industries-coal, copper, lead, and others. Until 1914, many people came from Europe and built modest homes within walking distance of the plants. But Perth Amboy needs help, and the Federal Government can provide some of that aid. Perth Amboy needs access roads, middle-income housing, a rebuilding of the downtown business district, and the elimination of many substandard business and residential structures. In addition, we have long-range plans for establisting a public works center, a new municipal building, a cultural center, and a new police headquarters. Mr. Chairman, if Perth Amboy is selected as one of the 70 demonstration cities in the Nation, some of these important projects will be converted from hope to reality. And if they are, not only will the city of Perth Amboy benefit, but more important, its people, who are looking forward to a great era of resurgence, progress, and achievement. I request that this statement be included in the official hearings of this subcommittee. CITY OF CAMDEN, April 6, 1966. Hon. WILLIAM T. CAHILL, Longworth House Office Building, DEAR CONGRESSMAN CAHILL: I do wish to take this opportunity, in accordance with your letter of March 30, to submit a statement for possible consideration to the House committee as stated in your letter. With regard to the demonstration cities project, reports indicate that preferred cities are to be given the assistance. This, if true, would be against the grain of basic, sound American principles. If funds are to be available, the principle of equal opportunity should apply. I am opposed to the selection of municipalities for Federal aid on any basis that does not give to all the oppor tunity to apply. I believe the times has come for any city applying for aid to list all aid previously received from the Federal Government. I have the impression that a revelation of funds received would indicate that some cities have already received preferred treatment and are still clamoring to be at the top of the list for new money. Camden will welcome the opportunity to compete on any fair basis for Federal help to win the battle against slums, blight, and decay. I have a proposal to submit for the committee's consideration, as follows: Allow cities to borrow funds from the Federal Government, making provision for the delay of payment of principal for a period of 10 years or more. The city would pay the interest on the loan. If foreign nations can be the direct recipients of loans from the United States, I believe our cities are a better risk. I would welcome the opportunity to discuss this idea further. Direct loans rather than grants will eliminate much loss of time and prove to be far more valuable. Cordially yours, ALFRED R. PIERCE, Mayor. Mr. BARRETT. Without objection, we will be in recess until 10 o'clock tomorrow morning. (Whereupon, at 12:45 p.m, the subcommittee adjourned, to reconvene at 10 a.m, Tuesday, March 15, 1966.) DEMONSTRATION CITIES AND URBAN DEVELOPMENT TUESDAY, MARCH 15, 1966 HOUSE OF REPRESENTATIVES, Washington, D.C. The subcommittee met, pursuant to recess, 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, Moorhead, Reuss, Widnall, Fino, and Mrs. Dwyer. Mr. BARRETT. The committee will come to order, please. This morning our first witness will be the Honorable Ralph S. Locher, mayor of Cleveland, Ohio. Mr. Mayor, would you come to the witness stand, please? Mr. Mayor, we hope we can give you a comfortable feeling this morning, and we want you to feel at home. I do want to say for the record that Charlie Vanik, one of our outstanding Congressmen, a very capable and knowledgeable Member of Congress, has been speaking very highly about you, and the splendid job you have done as the mayor of Cleveland. Mr. Mayor, if you desire to read your statement in full before any questions are asked, you may do so-whatever procedure you are desirous of following, we would be glad to abide by. STATEMENT OF HON. RALPH S. LOCHER, MAYOR OF CLEVELAND, OHIO Mr. LOCHER. I would prefer that, Mr. Chairman. I want to reciprocate, and state the high esteem and regard with which we hold Charlie Vanik. I am one of his constituents. We frequently look to him for advice and counsel and help. And I appreciate the fine things that he has said about me, and I want to return them manifold. Mr. Chairman and members of the committee, my name is Ralph S. Locher, and I am mayor of the city of Cleveland. It is an honor to be invited to appear before this committee to speak for the people of the city of Cleveland in support of H.R. 12341, the Demonstrations Cities Act of 1966. Our view, our comments, and our criticisms are constructively offered, intended to improve the effectiveness of the proposed program. May I start by saying, Mr. Chairman and members of the committee, that this bill is not a cure-all. It will not do away with all the ills and prejudices which permeate our urban society today. How |