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and sound techniques for the testing thereof and for the determination of adequate performance standards, and may relate to appraisal, credit, and other housing market data, housing needs, demand and supply, finance and investment, land costs, use and provement, site planning and utilities, zoning and other laws, codes, and regulations as they apply to housing, other factors affecting the cost of housing, and related technical and economic research. Contracts may be made by the Administrator for technical research and studies authorized by this subsection for work to continue not more than four years from the date of any such contract. Notwithstanding the provisions of section 5 of the Act of June 20, 1874, as amended (31 U.S. C. 713), any unexpended balances of appropriations properly obligated by contracting with an organization as provided in this subsection may remain upon the books of the Treasury for not more than five fiscal years before being carried to the surplus fund and covered into the Treasury. All contracts made by the Administrator for technical research and studies authorized by this or any other Act shall contain requirements making the results of such research or studies available to the public through dedication, assignment to the Government, or such other means as the Administrator shall determine. The Administrator shall disseminate, and without regard to the provisions of 39 United States Code 3216, the results of such research and studies in such form as may be most useful to industry and to the general public.

(6) Prepare and submit to the President and to the Congress estimates of national urban and rural nonfarm housing needs and reports with respect to the progress being made toward meeting such needs, and correlate and recommend proposals for such executive action or legislation as may be necessary or desirable for the furtherance of the national housing objective and policy established by this Act, with respect to urban and rural nonfarm housing, together with such other reports or information as may be required of the Administrator by the President or the Congress.

(c) Encourage localities to make studies of their own housing needs and markets, along with surveys and plans for housing, urban land use and related community development, and provide, where requested and needed by the localities, technical advice and guidance in the making of such studies, surveys, and plans.

SEC. 302. [In the performance of, and with respect to the functions, powers, and duties vested in him by] In carrying out research and studies under this title, the Administrator shall utilize, to the fullest extent feasible, the available facilities of other departments, independent establishments, and agencies of the Federal Government, [and, notwithstanding any other law, shall appoint a Director to administer under his general supervision the provisions of this title.] and shall consult with, and make recommendations to, such departments, independent establishments, and agencies with respect to such action as may be necessary and desirable to overcome existing gaps and deficiencies in available housing data or in the facilities available for the collection of such data. The Administrator is further authorized, for the purposes of this title, to undertake research and studies cooperatively with industry and labor, and with agencies of State or local governments, and educational institutions and other nonprofit organizations. For the purpose of entering into contracts with any State or local public agency or instrumentality, or educational institution or other non profit agency or organization, in carrying out any research of studies authorized by this title, the Administrator may exercise any of the powers vested in him by section 502 (c) of the Housing Act of 1948.

Sec. 303. There are hereby authorized to be appropriated such sums as may be necessary to carry out the purposes of this title.

The proposed Housing Act of 1949 would repeal section 503 of the Housing Act of 1948 and provide substitute language as section 506 of the Housing Act of 1949. The change in language is indicated below.

Sec. [503] 506. Any low-rent or veterans' housing project undertaken or constructed under a program of a State or any political subdivision thereof (and with the express purpose indicated in the State legislation of converting the project to a project with Federal assistance (if and when such Federal assistance becomes available),] shall be approved as a low-rent housing project under the terms of the United States Housing Act of 1937, as amended, 'if (a) a contract for State financial assistance for such project was entered into on or after January 1, 1948, and prior to January 1, [1949] 1950, (b) the project is or can become eligible for assistance by the Public Housing Administration in the form of loans and annual

contributions under the provisions of the United States Housing Act of 1937, as amended, and (c) the State or the public housing agency operating the project in the State makes application to the Public Housing Administration for Federal assistance for the project under the terms of the United States Housing Act of 1937, as amended: Provided, That loans made by the Public Housing Administration for the purpose of so converting the project to a project with Federal assistance shall be deemed, for the purposes of the provisions of section 9 and other sections of the United States Housing Act of 1937, to be loans to assist the do velopment of the project.

MINORITY REPORT

Political ownership of human shelter is the mark of the beast. Nothing can be more communistic. Those who live in houses owned by the political authority are in the nature of things so completely beholden to it as to make them amenable to its dictation in respect of the selection of persons to perform the duties of government. Willingly or not, this right of franchise is impaired.

If the pending measure, H. R. 4009, held out no hope to the power planners for more votes and greater political security, it would never have become a subject for congressional consideration.

In 1938 the Administration boldly attempted to make an over-thecounter deal to purchase with United States Housing Authority funds the reelection of the incumbent Member of Congress from my district, the Eighth Ohio. I was serving as mayor of Marion, and it was generally known that I intended to run for Congress.

Out of a clear sky, without even a hint from anyone that anything like it was brewing, Marion residents first learned about the attempted deal on picking up their daily newspaper and reading large headlines that Marion was to receive a million dollars for so-called slum clearance and housing.

Of course, to anyone having even an elementary understanding of Washington politics the proposition was sun clear. I made a study of the United States Housing Act and its operations and imparted my findings to the citizens of Marion.

Meanwhile the Washington forces moved in and began their insidious work of propagandizing for public approval their vote-buying and power-grabbing scheme. Armed with the power of eminent domain, which the Constitution never intended to be used for any such purpose as this, and guided only by their political interests, those forces, through a handful of local hirelings, went into sections of Marion and staked off what they arbitrarily called slum areas.

The local daily carried the news: Slum survey of Marion filed with the State Board. Points brought out in discussing these data are: Social diseases of various forms found in these areas; desirable tenants have gradually withdrawn from the areas until a low class of occupants have almost destroyed the livability of the structures. Among the comments made in the introduction of the survey were that

persons are living below decent levels in regard to sanitation and moral environment

A low standard of living has been continuing for many years.

and will without a doubt continue to the detriment of the city and community in general unless action is taken.

I was thoroughly acquainted with the sections designated "slum areas.” As a physician I had occasion to personally know many of the families living in them. Some of them were poor and lacked facilities and conveniences that others enjoyed. The statement that desirable tenants have gradually withdrawn from the area until a low class of occupants have almost destroyed the livability of the structure,” was not only a contemptible falsehood but also libelous in the highest degree.

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On the most populated street in one of the sections which were designated slum areas, 55 percent of the families owned their homes free of debt. The areas are very sparsely occupied. There is no such thing as crowding in any sense. Maybe there were social diseases in those areas. But according to my experience syphilis and gonorrhea were no more prevelant in those parts than in the other sections of Marion.

How did the local stooges of the United States Housing Authority find out that there were social diseases in those areas? tioned on that point they replied that their information was given them by the local board of health. That was a falsehood, because it so happened that I was president of the Marion City Board of Health at that time, of which they were not even aware when they made this slanderous attack, and I know that no one on the board gave out any such information or was in a position to do so.

When the persons who were responsible for this vicious conduct were driven by a self-respecting and righteously indignant people into a position of defense, their answer was, “We just followed instructions from Washington. Of course, Washington is the only source from which such evil work as this can come.

There was no slum in Marion then and there is none there now. I would to God that we had in Washington the willingness to earn an honest living and the integrity that prevails in those sections in Marion Ohio, that were designated by the Federal housing bureaucracy as slum areas. If we had, the threat of communism that now so ominously stalks before us would not exist.

I was hailed before the Ohio State Housing Board, not to explain my opposition to the scheme but to be told that as mayor of Marion I had no authority in the matter. I was given to understand that the determination of the placing of these political housing projects was no concern of any little mayor. That was a matter for the great United States Housing Authority, acting through the State Housing Authority, to decide.

The upshot of it all was no sale. The citizens of Marion refused to sell their souls for a mess of political pottage. Marion was saved from one of the worst political blights that ever struck any nation.

The United States Housing Act of 1937, of which H. R. 4009 is mainly an extension, is the most deceptive and dishonest piece of legislation on our statute books, and there are many dishonest and deceptive laws on them. The promoters of the scheme deliberately give out the impression that these houses are built for the people living in slum areas and the poorest people generally. That is a falsehood of the first water. Mr. Thomas Danahey, at one time president of the Detroit Housing Commission, forthrightly and truly stated the facts. He said:

In the first place, it must be made clear that they (the housing projects) will not be rented to slum residents or welfare clients. The tenants in these buildings will be people with definite minimum incomes and to be eligible to move in they must prove that their incomes are steady. There seems to be an impression that the slum residents are going to take over the buildings. Such is not the case.

I showed in testimony given before the House Committee on Banking and Currency in 1939, as appears in the Congressional Record of July 24 of that year, page 13827, from data obtained from eight housing projects in New York, Texas, and Florida, the only such data that I was able to obtain, although I requested the same from many other local housing atithorities, that only about 17 percent of the families eligible for occupying the dwellings in those projects were of the lower third income group, and nearly all of them were from the uppermost part of that group.

More than 80 percent of the families living in the above-indicated projects were from the middle income third, some even from the upper income third.

From information that I have been able to obtain, it would appear that the situation is more unfavorable to the lower third income group now than it was at that time, In fact, it is generally known by all in possession of the facts that so-called Federal low rent housing is available only to persons of a substantial income, and that it is definitely not available to the really poor people. The arrangement was definitely so planned.

After all, there is more political gravy to be had from the housing of a group with a substantial income than there is from poorhouses.

The United States Housing Act of 1937, together with the several State laws creating so-called local housing authorities, could not possibly have been devised by anyone who believes in the American tradition of freedom.' Only alien-minded persons who adhere to the Marxian philosophy could have done this.

Take a look at the State laws pertaining to the subject. In substance they are all substantially alike and must have been written by the same hand.

Once the local housing authority is established, it becomes a body "corporate and politic" over which the municipality loses much if not all of its authority.

Section 1078-34-A, of Ohio General Code: the governing body, chairman, and counsel of the housing authority shall perform the duties of the municipal council, mayor, and solicitor, respectively and the members of the housing authority shall, and are hereby authorized, to exercise and carry out all other powers and duties conferred upon officers of municipal corporations by the laws providing for such appropriation proceedings.

Section 1078–34:

An authority created under this Act shall constitute a body corporate and politic,

shall have the following powers in addition to others herein specifically granted: b. To determine what areas constitute slum areas

and to prepare plans for housing projects in such areas; to purchase, lease, sell, exchange, transfer, assign, or mortgage any property, real or personal, or any interest therein, or acquire the same by gift, bequest, or eminent domain.

Practically all the State laws make the local housing authority a "body corporate and politic,” so that it becomes a distinct and independent municipality or political subdivision within a municipality or a political subdivision. The Illinois law specifically provides

An authority shall be a municipal corporation and shall constitute a body both corporate and politic, exercising public and essential governmental functions.

Under the United States Housing Act the following agreement was entered into between the city and the local housing authority, that is between the city and the United States Housing Authority which is what it really amounted to on final analysis.

The city agrees that, during the period commencing with the date of the acquisition of any part of the site or sites for each project and continuing throughout the

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