CONTENTS Text of bills under consideration, S. 497, S. 1045, S. 1599__ WITNESS LIST Andrew J. Biemiller, director, Department of Legislation, American Julius Edelstein, executive assistant for planning and policy programing Page 2 11 15 224 201 74 143 136 Hon. Herman W. Goldner, mayor of the city of St. Petersburg, Fla. Hon. Jacob K. Javits, U.S. Senator from the State of New York. 139 81 80 Nathaniel Keith, president, National Housing Conference__ Robert W. MacGregor, Advisory Committee on Problems of Metropolitan 177 238 Kenneth A. Meiklejohn, legislative representative, American Federation of Labor and Congress of Industrial Organizations__ 224 S. E. Neel, general counsel and acting vice president, Mortgage Bankers 216 Ira S. Robbins, president, National Association of Housing and Redevelopment Officials_. 126 Harold Seidman, Assistant Director for Management and Organization, 90 Matt Triggs, representing the American Farm Bureau Federation_ 222 158 Perry E. Willits, president, National Association of Home Builders of the 150 186 136 192 EXHIBITS No. 1. Section-by-section summary of a bill to establish a Department of Housing and Urban Development.--. 2. Major developments affecting housing and urban development.. 4. Responsibilities of the Housing and Home Finance Agency (HHFA 5. Congressional action related to the proposed establishment of an executive department, office, or commission to deal with problems of urban affairs... 6. Gross expendi.ures of Cabinet departments and Housing and Home Finance Agency.. 7. Employment in HIIFA and in executive departments as of end of January 1965... 8. "Catalog of Federal Aids to State and Local Governments.' Extract, committee print, Subcommittee on Intergovernmental Relations (88th Cong., 2d sess.)--- IV 9. Department of Commerce: Public works acceleration and redevelop ment areas. 10. Federal programs relating to urban development not proposed for transfer to the proposed Department of Housing and Urban Develop ment... 11. Federal Home Loan Bank Board__ 12. Bill to establish a Department of Housing and Urban Development: Difference between 1965 bill and bill reported in 1961 13. Bill to establish a Department of Housing and Urban Development: Difference between 1965 bill and Reorganization Plan No. 1 of 1962. 14. Programs for small communities. 15. National Association of Housing and Redevelopment officials: HHFA Page 106 113 117 118 119 124 programs for senior citizens housing-- 130 16. Significance of homebuilding in the American economy. 153 158 174 183 20. Proposed amendment to S. 1599 to create a Department of Housing and Urban Development.--. 206 21. Provisions of State statutes bearing on domestic life insurance company investment in FHA mortgages_ 207 22. Letter to Senator Ribicoff from Housing and Home Finance Agency 23. Testimony by James F. Steiner for the Chamber of Commerce of the United States___ 218 226 24. Statement of the National Association of Manufacturers.. 25. Report on S. 497 from HHFA Administrator Weaver.__ 244 277 26. Statement opposing S. 1599 from Dennison D. Rice, Shelburne, Vt---27. Letters from W. L. Bucher and E. J. Nelson of Portland, Oreg., objecting to S. 1599 278 279 28. Letters from Senator Inouye and John J. Pietsche of Hawaii urging continuation of FHA 280 29. Letters from James R. Stockton and John A. Gilliland of Jacksonville to Senator Smathers.- 280 30. Resolutions from Hawaii approving and endorsing the proposed re- 31. Statement of United States Savings & Loan League- 33. Statement of the American Institute of Architects concerning Depart- 34. Statement of American Life Convention & Life Insurance Association of America_ 35. Statement of American Society of Landscape Architects 36. Statement of National Association of Mutual Savings Banks37. Statement of National Apartment Owners Association, Inc.. 38. Statement of National Farmers Union__. 281 287 288 288 289 290 291 292 293 39. Statement of National League of Insured Savings Associations.. 293 295 295 42. Letters from Senator Mondale, and E. H. Clapp of St. Paul supporting continuation of FHA... 296 43. Statement of the American Bankers Association_ _ _ 297 44. Letter from Bureau of Budget concerning the status of the FHA within the proposed Department-- ESTABLISH A DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WEDNESDAY, MARCH 31, 1965 U.S. SENATE, SUBCOMMITTEE ON EXECUTIVE REORGANIZATION, Washington, D.C. The subcommittee met, pursuant to notice, at 10 a.m., in room 1318, New Senate Office Building, Senator Abraham Ribicoff (chairman) presiding. Present: Senators Ribicoff, Gruening, Harris, Javits, and Simpson. Also present: Jerome Sonosky, staff director, Subcommittee on Executive Reorganization. Also Walter L. Reynolds, chief clerk and staff director, and Eli E. Nobleman, professional staff member, Government Operations Committee. Senator RIBICOFF. The hearing will come to order. The Committee on Government Operations has three subcommittees holding hearings today. Many of the members of this subcommittee are members of the other three subcommittees so they cannot be in three different places at the same time. We meet today to begin hearings on legislation to establish a Department of Housing and Urban Development, and related bills. We have before the subcommittee, S. 497, introduced by Senator Scott, which would establish in the Executive Office of the President an Office of Community Development. We have S. 1045, introduced by Senator Clark, to establish a Department of Housing and Urban Development. And we have S. 1599, which I introduced for myself and several others, including Senators Gruening, Kennedy of New York, and Javits, who are members of this subcommittee, and Senator Clark, who is our first witness. Other cosponsors are Senators Brewster, Dodd, Douglas, Hart, Long of Missouri, Muskie, Pell, Tydings, and Williams of New Jersey. S. 1599 is the administration's bill submitted to the Congress on March 23 by the Director of the Bureau of the Budget, who will be our second witness. We will insert in the record at this point the text of the bills under consideration. (S. 497, S. 1045, and S. 1599 are as follows:) [S. 497, 89th Cong., 1st sess.] A BILL To establish in the Executive Office of the President an Office of Community Development Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, ESTABLISHMENT OF OFFICE OF COMMUNITY DEVELOPMENT SECTION 1. There is hereby established in the Executive Office of the President an office to be known as the Office of Community Development (hereinafter referred to as the "Office"). There shall be in the Office a Director and a Deputy Director to be appointed by the President. The Deputy Director shall perform such duties as the Director may designate, and during the absence or incapacity of the Director or during a vacancy in the office of the Director he shall act as Director. The Director shall receive compensation at the rate of $ per annum, and the Deputy Director shall receive compensation at the rate of $ per annum. PERSONNEL AND POWERS OF THE OFFICE SEC. 2. (a) The Director, with the approval of the President, may appoint in accordance with the civil service laws and the Classification Act of 1949 such additional personnel as he determines to be necessary to carry out the functions of the Office. (b) In the performance of the functions of the Office, the Director is authorized (1) to procure by contract services as provided by section 15 of the Act of August 2, 1946 (60 Stat. 810; 5 U.S.C. 55a), at rates of compensation not exceeding $50 per diem for the personal services of individuals; (2) to appoint such advisory committees as he may determine to be necessary for the effective performance of the functions of the office; (3) to designate such representatives as he may determine to be necessary or desirable to maintain effective liaison with executive departments and agencies, and departments, agencies, and instrumentalities of the States, which are engaged in activities related to the functions of the Office; and (4) to use the services, personnel, and facilities of executive departments and agencies and those of State departments, agencies, and instrumentalities, with the consent of such departments, agencies, and instrumentalities, with or without reimbursement therefor. (c) Upon the request of the Director, each executive department or agency shall furnish to the Office such information, suggestions, estimates, and statistics as the Director may determine to be necessary or desirable for the performance of the functions of the Office. (d) Subject to the approval of the President, the Director may (1) promulgate such rules and regulations as may be required to carry out the functions of the Office; and (2) delegate to any other officer or employee of the Office authority for the performance of any duty imposed, or the exercise of any power conferred, upon the Director by this Act. COORDINATION OF FUNCTIONS SEC. 3. (a) Subject to the direction of the President, the Director shall take such action as may be appropriaate to coordinate the programs of the various departments and agencies of the executive branch which have a major impact upon the Nation's urban areas. Such programs shall include Federal activities relating to housing, urban development and redevelopment, community facilities. highways and transportation facilities, civil defense, water and air pollution, and such other activities as the Director, with the approval of the President, determines relate primarily to urban needs and problems. (b) In carrying out his functions under this Act, the Director shall (1) establish and maintain close liaison with the departments and agencies referred to in subsection (a), and (2) consult with State and local officials, and with interested business, labor, and other groups, concerning urban problems and needs. INFORMATION ON COMMUNITY DEVELOPMENT SEC. 4. The Director shall establish within the Office a Division of Information on Community Development. Through this Division the Director shall compile and make available to State and local officials, and other interested persons, through such means as he determines to be appropriate, information concerning the Federal programs referred to in section 3. The service provided by such division shall include assistance to State and local officials in relating such programs to specific urban problems or needs. RESEARCH AND STUDIES SEC. 5. The Director shall undertake research and studies with a view to determining what changes should be made (1) in the programs referred to in section 3 in order to achieve a more effective coordination of such programs with State and local programs designed to meet urban needs, (2) in the allocation of such programs among the various department and agencies of the executive branch, and (3) in the administration of such programs in order to achieve increased economy and efficiency, to avoid duplication, and to coordinate more effectively, the activities of such departments and agencies in the administration of such programs. The results of such research and studies shall be reported from time to time to the President for such action as he determines to be appropriate. FEDERAL COMMUNITY DEVELOPMENT COUNCIL SEC. 6. There shall be in the Office an advisory council, known as the Community Development Council. Members of the Council shall be appointed by the President upon nomination by the Director from among persons with broad experience and interest in urban and related problems, and may include persons outside the Federal service. The following Federal officials are hereby designated as members ex officio of the Council: the Secretary of Labor, the Secretary of Commerce, the Secretary of Health, Education, and Welfare, the Secretary of the Treasury, the Housing and Home Finance Administrator, and the Administrator of Veterans' Affairs. The President may designate other Federal officials as ex officio members of the Council. Members of the Council shall receive no compensation for their services, but shall be reimbursed for necessary travel and subsistence expenses as provided in the Travel Expense Act of 1949, as amended. The Council shall meet at the call of the Director, but not less than twice a year. The Council shall be concerned with all the urban problems mentioned in this Act, including air and water pollution, transportation, sewage, water supply, and urban renewal. COMMISSION TO STUDY TRANSFERS OF FUNCTIONS AND INTEGRATION OF ACTIVITIES SEC. 7. (a) (1) There is hereby established a special commission (referred to in this section as the "Commission") to study the feasibility of making transfers to and from the several departments and agencies mentioned in section 6 of this Act. The Commission shall consist of twelve members appointed by the President from among individuals in private life having substantial knowledge of and experience in housing, urban affairs, mortgage financing, and related fields. (2) The Commission may employ and pay the compensation of such staff as may be necessary to the performance of its functions. (3) Members of the Commission shall be compensated at the rate of $50 a day while actually engaged in the business of the Commission, and shall be paid travel expenses and per diem in lieu of subsistence in accordance with the provisions of section 5 of the Administrative Expenses Act of 1946 relating to persons serving without compensation. (b) The Commission shall conduct a thorough study and investigation of all functions relating to housing and urban affairs which on the date of the enactment of this Act are being performed by departments, agencies, and instrumentalities of the Federal Government, giving particular attention to (1) the distribution of such functions throughout the Government and the effectiveness with which they are being carried out by the departments, agencies, and instrumentalities in which they are respectively vested, and (2) the extent to which further coordination in the performance of such functions, with respect to each other, would serve to increase the overall efficiency and effectiveness of the pro |