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local authorities, provided an additional 75 million dollars for such a purpose, and asked that action be taken "immediately". In the case of funds for new public housing development, in July, 1970, when it became apparent that contract authority for fiscal 1971 would be shortly exhausted, local communities with projects ready for development waited hopefully for affirmative action by the Congress. Again, the backlog of demand—some 350,000 housing unitscould not be accommodated by the additional allocation of 75 million dollars for new development. But this authority could be used to take care of the most advanced and urgent projects. When the President signed the HUD Act of 1970 on December 31, there was widespread hope that these funds would be immediately released. Only with the 1972 budget submission in late January, 1971, did it become apparent that these funds were not to be made available. Local agencies which had proceeded in good faith to hold options on housing sites, and to encourage potential turnkey developers to stay involved, were left without relief. Most seriously affected were low-income citizens re quiring housing who would have to wait still longer for action. As of January 1, 1971, there were over 400 local communities with 90,000 public housing units under reservation or preliminary loan contract, which were jeopardized by the fund withholding. A list of these communities is attached to this letter, and we request that it be included in the record of the hearings.

In summary, the withholding of funds for urban renewal and public housing for fiscal 1971 came after a full exploration and clear action by the Congress in 1970, taken specifically and precisely to use these funds for specified needs. The withholding action only became publicly apparent when the 1972 budget was presented to the Congress.

ANOTHER EXAMPLE OF FUND WITHHOLDING WITH

IMPORTANT PUBLIC HOUSING IMPACT A still further example of how withholding of funds is having a seriously negative impact on low-income housing efforts involves the use of authority by the Department of Health, Education, and Welfare to match funds of local housing authorities to meet social service needs of low-income families in public housing, providing them with an opportunity to move toward full independence. The Congress has provided clear authority for the Department of HEW to use its funds for such purposes. However, the Office of Management and Budget is holding, without approval, the proposed HEW guidelines that would implement the use of these funds. Again, it appears that the clearly specified intent of the Congress is not being observed.

THE MECHANICS OF FUND WITHHOLDING One of the most disturbing aspects of the executive impounding of appropriated funds is the mystery surrounding it. For example, there was no publie announcement of the Executive Department's decision to withhold money nor any computation of the amount of funds involved. The extent of this embargn was not publicly apparent until the President submitted his fiscal year 1972 Budget, when a comparison of proposed outlays with appropriations revealed that a substantial portion of fiscal year 1971 funds were being withheld or postponed. The result was confusion and disorganization, for example. communities were at a loss as to how to calculate the effect of this embargo on pending community development and housing applications.

NAHRO suggests that a way to avoid such confusion in the future would be to require a public announcement of all embargoes, a rationale for them and an indication of the length of time that funds will be withheld. This would alert the Congress to the fact of the embargo, as well as encourage a public discussion on the rationale of the embargo. It would focus attention on the methods which were used in determining which programs and areas were to have funds withheld. It would provide local operating agencies with clearer guidelines for scheduling of activity.

We would appreciate your serious consideration of our viewpoint in this matter. Because this subject is of great interest to the Appropriations committees, we are also taking the liberty of sending them a copy of this letter. Sincerely yours,

ENEAS J. KANE.

President.

EXHIBIT PUBLIC HOUSING ACTIVITY IN JEOPARDY BECAUSE OF HOLD-BACK OF FEDERAL FUNDS L_DEC. 31, 1970

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PUBLIC HOUSING ACTIVITY IN JEOPARDY BECAUSE OF HOLD-BACK OF FEDERAL FUNDS I

DEC. 31, 1970-Continued

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Alton.. Cairo, Alexander County... Chicago...... Coffeen-Montgomery County... Cowden, Shelby County........ East St. Louis... Findlay, Shelby County Hoopston, Vermilion County Jonesboro, Union County.... Joppa, Massac County....... Macomb, McDonough County... Mount Pulaski, Logan County .. New Athens, St. Clair County.. Oakford, Menard County --.. Rockford.. Rock Island... Stewardson, Shelby County.... Stonington, Christian County... Tallula, Menard County...... Urbana, Champaign County... Wood River, Madison County --

Total (21).... ........

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INDIANA

Total (7).

MARYLAND

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256

26

250

Bloomington.. East Chicago.. Gary... Jeffersonville Kokomo..... South Bend... West Baden Sp

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Annapolis..
Anne Arundel County...
Baltimore...
Cambridge
College Park..
Elkton...--
Hagerstown.....
Havre de Grace...
Montgomery County.
Prince Georges County...

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300

224

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Waltham...

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Total (10)..............

KENTUCKY

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Total (11).

MICHIGAN

Columbia...
Cynthiana...
Danville.
Jefferson County.
London..

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PUBLIC HOUSING ACTIVITY IN JEOPARDY BECAUSE OF HOLD-BACK OF FEDERAL FUNDS I

DEC. 31, 1970-Continued

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etroit... lint.. rand Rapids lamtramck.. ackson.... ansing.. incoln Park.. Aount Pleasand. liver Rouge... loyal Oak Township. laginaw.. Sumpter Township. Traverse City. Trenton. fpsilanti.

Total (17)..

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MINNESOTA Duluth. Fond Du Lac Reservation... Leech Lake Reservation. St. Paul.

375 107 197

24 200 315 100

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100 200 60 150 350 300

MISSISSIPPI

200 60 100 200 300 250 100

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Concord..
Keene.

Nashua...
200
130 Total (3).-
100

NEW JERSEY
Bayonne.
2, 204 Bergen County..

Camden..

Carteret...
288 Cliffside Park.
16 Englewood
35 Hackensack.
795 Highland Park.

Irvington 1,634 Lodi.

Morristown..
Newark.
North Bergen.
Orange

Paterson...
50 Penns Grove-Edgewater.
250 Phillipsburg -
400 Pleasantville..

Salem
112 Summit.....
110 Wildwood..
80 Woodbridge To

Total (22).............
30
206

NEW MEXICO 10 200 Church Rock, Navajo..

Las Vegas....
1,599 Navajo of Arizona.....

Total (3)
30
110

NEW YORK 120 365 Amsterdam...-....----14 Buffalo...... 70 Cattaraugus, Seneca Nation...

70 Cortland. 1, 144 Freeport.. 600 Geneva... 42 Glen Cove...

Gloversville..

Harrietstown.
2,611 Hempstead....

Hempstead Village
llion

Ithaca..
45 Jamestown..
- Long Beach.

Massena...
Mount Vernon...
New Rochelle...
New York City.com

North Hempstead.. 1, 140 North Toawanda...

350

200

Alcorn County, Tennessee

Valley Mississippi-Region

No. 1.Biloxi... Choctaw..... Gultport. Harrision County-Region No. 8. Holly Springs Lumberton Oxford. Pass Christian. Starkville..... Vicksburg..... Water Valley.. Yazoo City.

Total (13) .........

MISSOURI
Aurora.
Charleston...
East Prairie...
Kansas City...
Lawson..
New Madrid
Richland...
St. Louis ...
St. Louis County.
Springfield.
Steele........

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PUBLIC HOUSING ACTIVITY IN JEOPARDY BECAUSE OF HOLD-BACK OF FEDERAL FUNDS I

DEC. 31, 1970-Continued

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Olean...
Oyster Bay.
Peekskill
Pittsburgh
Ramapo.
Rochester
Schenectady.
Syracuse.
Yonkers....

Total (30)....

NORTH CAROLINA
Chapel Hill.
Dunn.
Durham ....
Forest City..
Greensboro.
Greenville
Hamlet.....
Hendersonville.
High Point.
Lumberton.
Plymouth.
Raleigh....
Sanford....
Shelby.

Total (14)............

NORTH DAKOTA Plusnee Village, Morton * County... Glen Ullum, Morton County... Hebron, Morton County........ Total (3)...

OHIO Akron, metropolitan.... Campbell, Youngstown, metro

politan... Cincinnati, m Columbus... Dayton, metropolitan Elyria-Lorain, metropolitan..... Ironton...

. -------Lorain, metro Medina. Titonsville-Steubenville,

metropolitan Toledo, metropolitan

Total (11).............

OKLAHOMA
Beggs..
Davis Chickasaw Nation
Kaw City.
Krebs.....
Marlow-Chickasaw Nation....
Maud...in
Oklahoma City
Pawnee.
Rayan...
Shawnee...
Stroud..
Talihina Town.
Tishomingo Town .
Tulsa

Total (14)...

Milwaukie-Clackamas County...
Multnomah, Northeast area,

Portland..
60 Multnomah, Southeast area.

90 Portland...
437 Portland......
340

Total (4)...... 610

PENNSYLVANIA
10, 824

Aliquippa, Beaver County.....
Allentown...

Blakely Borough, Lacawanna
50

County.

Butler City, Butler County.. 132

Carmichaels Borough, Greene

County....
Corry.-.
Dubois, Sullivan County
Duquense, Allegheny County...
Easton.
Erie....

Franklin City..
150

Franklin Township, Greene 200 County...............

Gallitzin, Johnstown. ... 150

Harrison Township, Allegheny

County...
1,962

Homer City, Indiana County....
Latrobe Borough, Westmore-

land County...
New Kinsington, Westmore-

land County .....
20

Oil City...
Philadelphia....
Pittsburgh
Plymouth Borough, Luzerne

County...
Reading
Renovo, Clinton County.....
Reynildsville, Jefferson County.
Rochester Borough, Beaver

County......
Schuylkill Haven Borough,

Schuylkill County-..
Scranton.......
Shenandoah, Schuylkill County.
South Fork, Johnstown......
Sykesville, Jefferson County...

Inreep, Lackawanna County....
32

Titusville.
Wampum, Lawrence County....

Williamsport..........
3. 834 York.....

Central Falls...
Newport.
South Kingstown.......

Total (39).....

SOUTH CAROLINA
32 Aiken...............
1, 627 Anderson..
50 Blackville, region No. 3....

Charleston
10 Cheraw...
44 Columbia...
32 Georgetown..
36 Greenville..
895 Mullins

Newberry....
3,228 Salley, region No

298 2, 116

625

150

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