Mr. ROMNEY. I might say before I begin that I have with me today those people who are directly in charge, on the spot, in Wilkes-Barre, which is the worst disaster area, Mr. Chairman.

GENERAL STATEMENT OF THE SECRETARY

I am pleased for this opportunity to appear before you to discuss the proposed supplemental appropriation request for the urban renewal

program.

DISASTER RESPONSIBILITIES ASSIGNED TO HUD

The Department has a number of responsibilities assigned to it for providing assistance to people who have been hit by a disaster. In the event of disaster, following the effects of a storm such as Hurricane Agnes, the Department is usually assigned certain functions by the Office of Emergency Preparedness under the Disaster Relief Act of 1970. This includes providing temporary shelter to people whose housing has been made unlivable by the disaster. In the Hurricane Agnes area, the Department has provided 25,325 units of temporary shelter. This is almost five times more homes in a 11-week period than we provided in the 6 months following the Hurricane Camille disaster not long ago.

I might state, Mr. Chairman, this is a world record in providing temporary housing assistance because there has never been as much temporary housing provided in such a short period of time in the history of the world.

EMERGENCY ASSISTANCE PROVIDED BY HUD

Under the Disaster Act, the persons occupying temporary housing or shelter are not required to pay rent for the first 12 months. After that, rents are based on fair market value, but they are also adjusted according to the occupants' financial ability to pay. Mobile homes used as temporary housing can also be sold to the occupants at prices equitable to both the Government and the disaster victim.

The Department can provide also for assistance in the form of mortgage payments or rental payments to persons who, because of financial hardship caused by the disaster, are threatened with foreclosure or termination of a lease.

After people have been furnished shelter, our staff provides management services, maintains the temporary housing facilities, and provides housing guidance to families in obtaining adequate permanent housing. This service will continue for some time afterwards, until all families have been offered adequate permanent housing.

In addition, we have HUD employees on the spot to assist in the permanent recovery of the devastated area. This includes technical assistance to local officials and seeing what other kinds of assistance can be given under our programs to prevent or reduce damage from future disasters and to assist in the economic recovery of affected communities. These activities -except the salaries of our regular staff and services normally provided by HUD—are funded by reimbursement from the Office of Emergency Preparedness.

PRIOR DISASTER ASSISTANCE UNDER URBAN RENEWAL

Under the urban renewal program, we have already had considerable experience in giving disaster assistance to communities. Since the Housing Act of 1956, we have had the specific authority to provide urban renewal financial assistance, but without some of the requirements which might delay it. For example, the community does not need to have a workable program to be eligible for such assistance. It is not required to hold public hearings on site acquisition, and the areas affected do not have to be designated as slum, blighted, or deteriorating. Relocation assistance can be more readily provided, also, without the usual conditions of occupancy in a residence at the time an area is designated as an urban renewal area.

Nearly $90 million has been provided under the urban renewal program since 1956 for this purpose to 28 localities in 12 States. That is in addition to about $33 million provided to Alaska following the earthquake of 1964.

CURRENT URBAN RENEWAL DISASTER ASSISTANCE PROPOSAL

In our supplemental estimate we are asking for $250 million to provide redevelopment assistance as a result of Hurricane Agnes. Congress has already enacted a total of $1.2 billion for the urban renewal program this year. That included $1 billion, which was our 1973 budget request. The additional $200 million was provided with instructions from the conference committee to expedite and process applications from the seven States hit by Hurricane Agnes. The committee instructed us to develop a supplemental budget in order to replenish the funds necessary to provide for both the ongoing and emergency programs.

We are receiving applications for disaster assistance right now from the communities hit by Agnes. Most of the assistance will be given under the conventional urban renewal program.

The total demand may exceed the $450 million for the urban renewal program which we have identified for disaster activities. However, we are looking at those communities affected which already have urban renewal programs. By reprograming, the communities may be able to apply funds which have already been made available to them.

We are taking account, also, of the assistance provided by other Federal agencies. These may affect the total demand we will be required to meet. For example, the Small Business Administration can make loans with certain forgiveness provisions. The Corps of Engineers can also be engaged in clearance, demolition or rehabilitation work. We are going to try to avoid any duplication of effort among the various Federal programs involved.

The situation in the communities hit by Agnes, especially in Pennsylvania, remains very serious. It is worse than anything I have ever seen, and we are working as quickly as possible to provide whatever help we can. Communities virtually have been destroyed, and it will take a lot of work to bring them back. We are hoping for quick action on our supplemental request so that we can do the job in these communities without hindering those urban renewal programs already

under way elsewhere in the country. We will be happy to answer any questions you may have on our request or the conduct of our disaster activities.

Mr. Chairman, before we get to the questions, I might make available to you a book that really contains the best pictorial account of what actually happened there in Wilkes-Barre, which was the hardest hit community.

(The book was placed in the committee files.)

HOUSING CHARTS

Secretary ROMNEY. Also, here are some exhibits that we have taken from our control room.

(The exhibits follow :)