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INDEPENDENT OFFICES APPROPRIATIONS FOR 1965

TUESDAY, MAY 5, 1964

U.S. SENATE,

SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS,
Washington, D.C.

The subcommittee met, pursuant to recess, at 8:30 a.m. in room S-128, U.S. Capitol Building, Senator Gordon Allott, temporarily presiding.

Present: Senator Allott.

NATIONAL CAPITAL HOUSING AUTHORITY

STATEMENTS OF WALTER E. WASHINGTON, EXECUTIVE DIRECTOR; EDWARD ARONOV, DEPUTY EXECUTIVE DIRECTOR; H. V. EVERETT, DIRECTOR OF MANAGEMENT; AND HERMAN EDWARDS, BUDGET OFFICER

APPROPRIATIONS, FISCAL YEAR 1964; ESTIMATE, FISCAL YEAR 1965

Senator ALLOTT. The committee will come to order. This morning we have the National Capital Housing Authority.

Mr. Washington will be in in a moment. We have here right now Mr. Aronov, Mr. Everett, and Mr. Edwards.

Last year you had $43,000 and this year $37,000 is requested, which is $6,000 less than last year. What is the situation with respect to employees?

same.

PERSONNEL SITUATION

Mr. ARONOV. Senator, the employees will be approximately the The reason that there is $37,000 this year instead of the $43,000 of last year is that the Housing Authority is in the process of removing or demolishing 23 units under the program and replacing them with additional units under a different portion of the Housing Act, so that, as a consequence, the present budget is reduced to $43,000. However, the savings is not reflected in the personnel itself, but in other aspects of the operation.

Senator ALLOTT. Well, I think the legislative history on this is well known. The House of Representatives, of course, has always insisted on keeping the National Capital Housing Authority alive, and I don't presume you care which way it goes.

Mr. ARONOV. We are willing to do whatever the House and the Congress think necessary for us to do.

Senator ALLOTT. Your statement is 12 pages long.

TITLE I PROGRAM

Mr. ARONOV. The statement is 12 pages long, but not all of it refers to the title I program for which we are asking the $37,000. Most of it refers to the title II program about which we give information to the Congress each time we submit a budget, even though we are not asking for additional funds for that part of the program.

Senator ALLOTT. All right. This is the same statement you gave to the House?

Mr. ARONOV. Exactly the same, Senator.

Senator ALLOTT. All right. I do not think we will include it all in the record. We will include that part of it respecting title I. (The information referred to follows:)

NATIONAL CAPITAL HOUSING AUTHORITY REQUEST FOR APPROPIRATION OF $37,000 FOR FISCAL YEAR 1965

TITLE I

Justification

After June 30, 1964, the expiration of the present fiscal year, it is planned to vacate the 23 units known as Hopkins Place SE., demolish them, and rebuild on the site under the title II housing development program.

In the 1965 budget request presented herewith, no funds are sought for the 23 units at Hopkins Place, either for maintenance and operation or for demolition. Funds requested in the 1965 budget are for maintenance and operation of the remaining 73 units in title I. The amount requested, $37,000, represents a higher percentage of the present budget of $43,000 than the reduction of 23 units would indicate because of salary and wage increases in 1963 and 1964 and the addition of personnel to aid in tenant rehabilitation and property maintenance. Utility cost increases are due to the fact that utilities were not furnished the old Hopkins Place tenants; whereas utilities are supplied for most of the remaining 73 units.

Ordinary maintenance and operation cost increases are due to wage increases plus increased cost of materials for tenant painting program.

The reorganization of routine administrative and maintenance operations of the Authority has an effect on title I, for title I is charged with its pro rata share of routine Authority costs.

However, title I does not provide for insurance protection, payments in lieu of taxes, or collection losses as does title II. For this reason, title I has a minimum of general expense.

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Senator ALLOTT. Could you in about 2 minutes highlight for me what you do? What you have done the last year?

ACTIVITIES, 1964

Mr. ARONOV. Yes, Senator. In the last year the Housing Authority has continued its program of managing existing units and developing additional units for the use of low income families. We had approximately 7,900 units under management at the end of the fiscal year, and during the fiscal year we scheduled construction for an additional 736 units, and under various stages of planning there are an additional 1,718 units. Of these, at the beginning of the fiscal year and at the end of the fiscal year also, there were only 96 units in the program for which we are presently submitting a budget.

STATUS OF DEMOLITION PROGRAM

As of the end of this fiscal year there will be a demolition contract and 23 of the 96 units will be demolished, Senator. So it has been a pretty busy year for us.

Senator ALLOTT. That will leave you 73.

Mr. ARONOV. Yes.

Senator ALLOTT. In title I.

Mr. ARONOV. Yes.

Senator ALLOTT. And it comes to a higher percentage because of salary and wage increases?

Mr. ARONOV. That is right, Senator.

Senator ALLOTT. Is there anything else that you would like to comment on particularly for the record?

Mr. ARONOV. No. We think that the submission we made to this body gives a good justification for the amount of money that we requested.

Senator ALLOTT. All right. I think that is all we need, then, thank you.

RENEGOTIATION BOARD

STATEMENTS OF LAWRENCE E. HARTWIG, CHAIRMAN; HERSCHEL
C. LOVELESS, BOARD MEMBER; THOMAS D'ALESANDRO, JR.,
BOARD MEMBER; WILLIAM M. BURKHALTER, BOARD MEMBER;
JACK BEATY, BOARD MEMBER; HOWARD W. FENSTERSTOCK,
GENERAL COUNSEL; PAUL T. SEMPLE, DIRECTOR OF ASSIGN-
MENTS; R. F. HAGGERTY, DIRECTOR OF ADMINISTRATION; AND
MISS ELFRIEDA EGBERT, BUDGET ANALYST

APPROPRIATIONS, FISCAL YEAR 1964, ESTIMATES, FISCAL YEAR 1965

Senator ALLOTT. For the Renegotiation Board, we have Mr. Lawrence E. Hartwig, the Chairman, together with Board and staff members. For the sake of the record, then, last year the appropriation was $2,550,000 and your budget this year is $2,600,000 which is up $50,000. You have a short statement, Mr. Hartwig, and you may proceed in your own way.

Mr. HARTWIG. All right, Mr. Chairman.

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