expeditiously. For example, the rent supplement program, to be administered by the Federal Housing Administration, has obvious interrelationships with the low-rent housing program carried out by the Public Housing Administration, with the program of loans for housing for the elderly and handicapped carried out by the Community Facilities Administration, and with programs of the Federal National Mortgage Association (which facilitates financing for the basic residential construction) and the Urban Renewal Administration. The new program of grants for basic water and sewer facilities, to be administered by the Community Facilities Administration, must be coordinated not only with land development mortgage insurance activities of FHA under the new act, but with the new program emerging in the Department of Commerce, and with similar programs of the Farmers Home Administration and with the responsibilities of the Department of Health, Education, and Welfare under the Water Pollution Control Act. The new program of grants for construction of neighborhood facilities, to be administered by the Urban Renewal Administration, is to be closely coordinated with the antipoverty program of the Office of Economic Opportunity, as well as with the low-rent public housing program of PHA. Similar examples can be cited for almost every new or expanded program. The Administrator's responsibilities, as head of the Federal agency charged with carrying out these activities, are understandably made a great deal more complex and difficult as a result of such major changes. Enactment of the new Housing Act has occurred so recently that the full scope and magnitude of these added problems cannot be completely assessed at this time, nor can a precise evaluation of the skills which may be needed. The requested supplemental appropriation for "Salaries and expenses" includes an estimate of $200,000 for general agency supervision responsibilities, which is expected to permit addition of 27 employees to the staff charged with assisting the Administrator in general supervision and coordination. Administration of new planning requirements Estimated employment, June 30, 1966--. 30 $145,000 The Housing and Urban Development Act of 1965 imposes certain requirements on several of the new programs with respect to adequate comprehensive planning as a basis for Federal assistance: 1. Grants for basic water and sewer facilities.—Section 702 of the act requires that the Administrator determine that any project is consistent with a program for a unified or officially coordinated areawide water or sewer facility system as part of the comprehensively planned development of the area; prior to July 1, 1968, grants may be made if a program for an areawide system is under active preparation. 2. Grants for neighborhood facilities.-Section 703 of the act requires that the Administrator determine that the project will provide a facility consistent with comprehensive planning for the development of the community. 3. Advance acquisition of land.-Section 704 of the act requires that the Administrator determine that the public work or facility for which land is to be utilized will contribute to the comprehensively planned development of the area. 4. Open space land.-Section 905 of the act permits grants only if the Administrator finds that assistance is needed for carrying out a unified or officially coordinated program as part of the comprehensively planned development of the urban area. 5. Grants for urban beautification and improvement.-Section 706 requires that the administrator establish criteria to assure that the local program assisted by grants is important to the comprehensively planned development of the locality. 6. FHA mortgage insurance for land development.-Section 201 of the act (adding a new title X to the National Housing Act, as amended) requires that a land development under that title shall only be undertaken in accordance with an overall development plan, which is consistent with a comprehensive plan which covers, or with comprehensive planning being carried on for, the area in which the land is situated, and which meets criteria established by the Administrator for such plans or planning. These planning requirements under the 1965 Housing and Urban Development Act supplement and are additional to those of the Urban Mass Transportation Act of 1964, under which assistance is provided only for facilities and equipment necessary to carry out a program for a unified or officially coordinated mass transportation system as part of the comprehensively planned development of urban areas. In each case there is a clear Federal responsibility to assure that statutory requirements are met, that adequate planning and coordination is taking place, and that Federal assistance will not be wasted through investment in unplanned. unnecessary, or improper projects or programs. Administration of the planning requirement under all the programs must be so directed as to (a) assure that all programs and requirements operate, insofar as feasible, to meet common local or areawide goals and objectives; (b) minimize conflict and confusion at the local or regional level; and (c) simplify review and administration of comprehensive planning requirements. In order to meet, as effectively as possible, the several statutory requirements and to provide the most useful assistance to State, regional, and local planning bodies involved in comprehensively planned development, the current supplemental appropriation request for "Salaries and expenses" includes funds in the amount of $145,000 to permit additions to the Agency staff of some 30 employees. To bring administration of comprehensive planning programs as close as feasible to local conditions and local personnel, the Agency regional offices would be provided with a qualified staff of professional employees under the direct supervision of the regional administrator. This method of organization not only eliminates the possibility of conflicting determinations and advice, but permits consolidation of all reviews of planning requirements in connection with Agency programs and obviates the necessity of providing separate personnel assigned to administration of planning requirements to each operating program. Development of and supervision of regional application of criteria would be handled by the small central office staff, where criteria and standards can be developed in close collaboration with constituents responsible for individual programs, with the Agency urban planning assistance program, and with other Federal agencies. The proposed supplemental appropriation for "Salaries and expenses" includes two items of funds in connection with analysis of local housing markets: an increase of 32 in employees providing market analysis service in the Agency regional offices and the departmental service; and a proposed working arrangement with the Post Office Department to provide house-to-house surveys in some 200 areas which will give additional much-needed basic information on housingunit vacancies for further use in assessing the status of local housing markets. The most immediate and pressing need for much expanded housing market information on the local level is in the administration of the new rent supplementation program. The types of information on local housing markets heretofore collected and utilized in connection with the Agency's programs have-by the very nature of those programs themselves-not necessarily required information on the segments of the housing market which will be predominantly affected by the new rent supplementation program. In order to administer the new program, the Agency will require consistent market studies in the areas to be served to establish the relative priorities of demand and to permit establishment of local programs-in terms of numbers of dwelling units, sizes, rentals, costs, and other factors-appropriately related to the needs and to establish income limitations for those eligible for assistance. New construction and other factors affecting the supply of housing in a given locality have under the programs of the Federal Housing Administration and other agencies-operated not only with the benefit of governmental market analysis in major areas, but with built-in assessment by the private-enterprise market of needs, demands, and capabilities. Under the new rent supplementation program, the second of these is substantially removed, making the necessity for realistic and comprehensive local housing market analyses of even greater importance. A further explanation of the need for market analysis is included in section B. The Agency's housing market analysis capabilities will require strengthening in order to provide accurate, up-to-date information for the administration of the other new or expanded programs provided through the new act. The sup plemental budget estimate for housing market analysis personnel, therefore, is not of a one-time or planning nature in connection only with the new rent supplement program, but represents a necessary response to the basic modifications in the Agency's total mission enacted in the 1965 act. The proposed survey of some 200 local areas by the Post Office Department is more immediately related to the rent supplementation program. Vacancy surveys by the Post Office Department-a recognized technique for the procurement of information on local housing markets-have been conducted for the Agency and others preparing studies of local markets for several years. The Post Office Department will undertake to provide addresses of dwelling units on local postal routes which are vacant at the time of the survey, so that not only the number of vacant units is known but also so that field interviews and inspections may be undertaken to determine the kinds, sizes, and types of units and-where feasible the rental or other cost information. Surveys in 200 areas are budgeted at a cost of $2,200 each during the current fiscal year, to be reimbursed to the Post Office Department out of this requested appropriation. Planning for study of tax policy, zoning, codes, etc. Estimated employment, June 30, 1966– Contract and consulting costs---- 6 $75,000 $25,000 Section 301 (a) of the Housing and Urban Development Act of 1965 states the following congressional findings: 1. "The general welfare of the Nation requires that local authorities be encouraged and aided to prevent slums, blight, and sprawl, preserve natural beauty, and provide for decent, durable housing so that the goal of a decent home and a suitable living environment for every American family may be realized as soon as feasible." 2. "There is a need to study housing and building codes, zoning, tax policies, and development standards in order to determine how (1) local property owners and private enterprise can be encouraged to serve as large a part as they can of the total housing and building need, and (2) Federal, State, and local governmental assistance can be so directed as to place greater reliance on local property owners and private enterprise and enable them to serve a greater share of the total housing and building need." The Housing and Home Finance Administrator is directed by section 301(a) "to study the structure of "(1) State and local urban and suburban housing and building laws, standards, codes, and regulations and their impact on housing and building costs, how they can be simplified, improved, and enforced, at the local level, and what methods might be adopted to promote more uniform building codes and the acceptance of technical innovations including new building practices and materials; "(2) State and local zoning and land-use laws, codes, and regulations to find ways by which States and localities may improve and utilize them in order to obtain further growth and development: "(3) Federal, State, and local tax policies with respect to their effect on land and property cost and on incentives to build housing and make improvements in existing structures." Section 301 (b) requires the Administrator to submit a report based on such study to the President and to the Congress within 18 months after the date of the enactment of the Housing and Urban Development Act of 1965 or the appropriation of funds for the study, whichever is later. Section 301 (c) authorizes the appropriation of such funds as may be necessary to carry out the purposes of the section, to remain available until expended. On this basis, six major areas of study can be determined: (1) Building laws, standards, codes, and regulations; (2) Housing laws, standards, codes and regulations: (3) Zoning and other land-use laws, codes, and regulations; (4) Federal, State, and local tax policies; (5) Development standards; and (6) Overall considerations and interrelations. Within each of these six major areas, detailed plans should be developed for intensive study, analysis, and reporting within the framework of the study required by section 301 of the Housing and Urban Development Act of 1965 and within the 18-month time period provided in that act. The current supplemental appropriation request for "Salaries and expenses" includes a planning budget of $100,000 to design the overall study, estimated to provide $75,000 for employment of highly qualified professional staff and directly related expenses and $25,000 for consulting services on the part of recognized experts in the fields to be covered by the study. Following completion of the study design and planning period, a specific budget request for the full costs of the study can be prepared for consideration by the execuitve branch and the Congress. Grants for basic water and sewer facilities Estimated employment, June 30, 1966_ 250 $1,750, 000 The new program of grants for basic water and sewer facilities enacted in section 702 of the Housing and Urban Development Act of 1965 is presented and justified in section C, below. Funds for grants would be appropriated under the request discussed in that section; funds for administrative expenses in connection with this program are included as part of the appropriation request for "Salaries and expenses" covered by this section in the amounts indicated above. Grants for neighborhood facilities Estimated employment, June 30, 1966__. 85 $465, 000 The new program of grants for neighborhood facilities enacted in section 703 of the Housing and Urban Development Act of 1965 is presented and justified in section K, below. Funds for grants would be appropriated under the request discussed in that section; funds for administrative expenses in connection with this program are included as part of the appropriation request for "Salaries and expenses" covered by this section in the amounts indicated above. Advance acquisition of land Estimated employment, June 30, 1966-. 45 $250,000 The new program of grants for assisting in the timely acquisition of land planned to be utilized in connection with the future construction of public works or facilities enacted in section 704 of the Housing and Urban Development Act of 1965 is presented and justified in section D, below. Funds for grants would be appropriated under the request discussed in that section; funds for administrative expenses in connection with this program are included as part of the appropriation request for "Salaries and expenses" covered by this section in the amounts indicated above. Study of effect of proximity to airports Net cost, fiscal year 1966__. $100,000 Section 1113 of the Housing and Urban Development Act specifically directs the Administrator to undertake a study to determine feasible methods of reducing the economic loss and hardship suffered by homeowners as the result of the depreciation in the value of their properties following the construction of airports in the vicinity of their homes, including a study of feasible methods of insulating such homes from the noise of aircraft. The act requires that findings and recommendations be reported to the President for transmission to Congress no later than August 10, 1966. The current supplemental budget request accordingly would provide $100,000 for this study. Certain basic information and research needed for the study has been de veloped by a joint undertaking of the Federal Aviation Agency and the U.. Air Force in a report "Land Use Planning Relating to Aircraft Noise" of October 1964. This study is now used by the Federal Housing Administration in the approval of new mortgage insurance commitments. It does not, however, alleviate the problems of homeowners whose homes have been adversely affected by construction or enlargement of airports after they were built and occupied. Additional work will be required in the technological aspects of insulation of buildings and surrounding areas from noises generated by airports and in the costs of such insulation. The proposed study would be undertaken by contract with a recognized organization or group of organizations with special qualifications in the general area. Nonadministrative limitation The proposed appropriation language would increase the amount otherwise available for nonadministrative expenses in connection with urban renewal programs by $175,000. Three major provisions of the Housing and Urban Development Act of 1965 will add to the work which must be done by the nonadministrative staff of urban renewal representatives. Specifically, these are rehabilitation grants to lowincome owner-occupants, demolition grant programs, and code enforcement programs. It is expected that each of these programs will begin to have an impact on workload as soon as cities begin developing applications. The increase in the nonadministrative expense limitation would provide for 30 new positions during 1966. This would permit the addition of 24 urban renewal representatives and 6 clericals to the staff of the regional offices and would maintain the current ratio of 1 clerical for 4 urban renewal representatives. It is likely that most, if not all, of the cities in the first year with approved programs of these types also have active urban renewal programs. It is planned that urban renewal representatives assigned to cities which are developing or executing urban renewal programs will also provide guidance and assistance for these activities, and inspect progress, rather than establish a separate group for this purpose. However, most contracts for demolition programs and code enforcement programs will be with cities, not LPA's, and the work being done will not be in urban renewal project areas but scattered in other areas of the cities. Rehabilitation grants will be made to residents of urban renewal areas and of other areas with code enforcement programs. It cannot be assumed that the number of urban renewal representatives required for urban renewal project operations can fit these new duties into their visits to the localities without taking more time or doing less than they otherwise would have at the projects. Accordingly, these three new programs account for a measurable nonadministrative workload which must be provided for by staff additions. This is more necessary in view of the fact that the 1966 Appropriation Act did not increase the limitation on use of nonadministrative funds as requested, but provided the same amount as in 1965 when the project workload was somewhat less. The table on the following page shows estimated administrative expenses during fiscal year 1966 for the program financed through the "Salaries and expenses" appropriation. SALARIES AND EXPENSES-OFFICE OF THE ADMINISTRATOR Contract and consulting costs-study of tax policy, 25,000 26 Supplies and materials_. 31 Equipment--- Total obligations---- Contract for airport study. Payment to HEW for certification relating to sewage Nonrecurring equipment costs for new employees- 100,000 100,000 24, 100 44, 000 223, 900 3,605, 000 |