also including mobile home park operators, manufacturers, lenders and others involved in the mobile home and manufactured housing industry.

My purpose in testifying today is to convey to you the views of our Association with respect to. that part of pending disaster legislation which relates to the acquisition and management of mobile homes as temporary housing in the event of a major disaster such as that which followed the hurricane Camille in the Gulf States last August.

It is our understanding that immediately following Hurricane Camille, the Department of Housing and Urban Development contracted for and subsequently acquired 5,912 mobile homes from manufacturers and dealers and that the initial delivery occurred shortly after the August 22, 1969 invitation for bidding. We also understand that 3,666 of these units were delivered for use in Mississippi; 1,991 in Louisiana; and 255 in Virginia and West Virginia.

These mobile homes were acquired on a lease basis, generally a twelve months' lease, with the cost of leasing a two-bedroom unit ranging from $2,098.00 to $2,965.00 per year and a three-bedroom unit leasing for $2,390.00 to $3,460.00

per year.

Because, as of April 24, approximately 4,350 families are still living in these mobile homes, it may be difficult to make a complete evaluation of the effectiveness of the leasing method as distinguished from outright purchase of mobile homes from either the manufacturers or dealers.

Nevertheless, it is our opinion that the leasing method is impractical and probably will result in a greater cost to the Government than if the mobile home units had been purchased by the Department. It is our recommendation that legislation provide authority for the Department of Housing and Urban Development to purchase, as well as lease mobile homes for this purpose. Our Association feels that legislative intent should be clear that the Department seriously consider not only the purchase of mobile homes at the time of a disaster but also the stockpiling of mobile homes in strategic areas in the country that are more prone to disasters such as hurricanes, tornadoes and major flooding.

We believe that mobile homes could be stockpiled on land belonging to the United States, near military installations and that with little expense they could be prepared for stockpiling and reconditioned for quick transfer.

In our opinion through the use of the National Guard and other military vehicles these mobile homes could be quickly transfered and put into use in disaster areas. Mobile home dealers are highly qualified in setting up mobile homes for use by occupants and are deployed throughout the country. We are confident there would be enough talent and experience in this industry near and in disaster areas to adequately assist in putting mobile homes into use within a very short time.

We also believe that the authority to purchase mobile homes in the bill approved by the Subcommittee should also contain authority for the Department to sell the unit to the family using it in the disaster areas. It is our understanding that under the survey conducted by the Department of Housing and Urban Development 91% of the occupants of mobile homes in the Hurricane Camille area were satisfied with, their accommodations and we believe that a great percentage of these would purchase the units if such authority existed.

It is also our belief that the Department of Housing and Urban Development should be authorized to acquire mobile homes from either manufacturers or dealers and that the time element be a major factor in determining the source of procurement. HUD authority should be flexible enough to permit the Department to buy mobile homes in or near a disaster area from a mobile home dealer rather than having to go to the factory to haul these units long distances on the highways.

We commend these views to the Subcommittee's consideration.

Mr. JOHNSON. If the gentleman from Mississippi would like to make a comment at this time, and if he has a statement, we would place his statement in the record, too.

Mr. HUMPHREYS. Mr. Bonelli does not have a formal statement. Mr. JOHNSON. I assume he has had as much experience with Camille as have most people in the mobile home business.

Mr. HUMPHREYS. We had Mr. Earl Aechon who is from that area also. His remarks were found very interesting, and I think this committee may benefit from those comments in the Senate as well if you would like to footnote that.

The basic position of our association is that we would like the legislation to include authorization for the purchase of mobile homes as well as leasing. In a given year it may be better to purchase than to lease, and we think on an overall basis it is much better for the Federal Government to purchase mobile homes rather than to lease. There were many, many problems that have occurred because these units were leased rather than purchased. This would be the thrust of our position, and Mr. Bonelli of course can footnote that substantially. Mr. JOHNSON. The existing statutes only provide for leasing at the present time.

Mr. HUMPHREYS. The legislation we are considering allows leasing and we think it should be leasing or purchase.

Mr. BONELLI. Mr. Chairman, I have been rather closely associated with Camille. I have nothing really to sell the Government or anything else. The only representation I make is that there should be an improvement in the way it is handled. There are so many people in that area of the gulf coast who are now living in what I refer to as HUD trailers. These mobile homes were leased by HUD from various lessors and the tenants still have no place to live. The thing that is bearing down at the moment is that the period of the emergency as declared by the President will expire on the 18th, which is the anniversary of Camille, and these people have been through HUD or the Mississippi agency or the municipal agency working under HUD given notice, a great many of them, that they must find other places to live by the 18th of August. All of this stems from the fact that possibly HUD must return these mobile homes to these lessors through some arrangements possibly and the lessors are not willing to extend the leases. It is a rather serious situation.

I have a clipping if you would like to have it read or incorporated into the record from the Daily Herald, which is a Biloxi-Gulfport, Miss., paper.

Mr. JOHNSON. We will make that a part of the record. (The article referred to follows:)

[From the Daily Herald, Biloxi-Gulfport, Miss., July 25, 1970]

HUD ISSUES TRAILER EVACUATION GUIDELINES

With the Aug. 18 deadline for evacuating HUD mobile homes almost at hand, officials of Housing and Urban Development Agency Friday issues a statement of policy involving the three major hurdles which evacuation will mean for the hurricane-stricken families who have spent all or most of the past year in the temporary shelter.

Robert E. Brown, HUD representative, Gulfport, announced his department will do "as much as we can to help with the arrangements for the transition." He cited special efforts in the field of rent structure, adjustment and tardy rent payments.

The new rent structure follows:

Trailers located on group sites provided by the Gulfport Housing Authority: Two bedroom, $65 plus a $15 lot charge (the lot charge is uniform in each case); thre bedroom small, $75 plus $15 lot charge; three bedroom large, $85 plus $15 lot charge. The total charge includes water and sewerage. All other utilities will be paid by the tenant.

For trailers located on individual or commercial lots, mobile home charges will run $65 for two bedroom, $75 for three bedroom small and $85 for three bedroom large. All utilities will be paid by the tenant and the care of the lot will be borne by the tenant.

"The law only provided subsidized housing at emergency rates," Mr. Brown stated. "The rent structure in effect now will have to cease on Aug. 18. Our survey teams are now in the process of securing available land in trailer parks and other possible sites."

As to adjustments, Mr. Brown assured tenants that "We will assure the same help on hardship adjustments. A team of counselors is now interviewing the occupants case by case."

For the person behind in his rent, a new plan of payment will be developed on an individual basis. The lease will not be renewed after Aug. 18 unless reasonable arrangements can be made to catch up on the amounts.

After Aug. 18, he said, everything will open up on a month-to-month basis. "We will do as much as we can to help with special arrangements—and nobody will be put out of the mobile homes without a place to go unless we feel they are failing to take advantage of other avenues open for their benefit."

As late as Thursday, the official HUD accounting of the trailer situation showed 3,067 mobile homes actually delivered and occupied in the Camille region, 3,481 families housed (this was due to the fact that many families vacated the trailers as soon as their original homes were restored and a turnover in trailer occupancy resulted); and there are now 1,609 mobile homes in use.

Future dealings with the occupancy of HUD trailers will be arranged through the Gulfport Housing Authority, whose chairman, Huston Carter, said "The reason for the absolute necessity of a trailer deadline is that when the President declared a state of emrgency, he declared it for one year after the hurricane: it's as simple as that."

Mr. BONELLI. This clipping states how many families will be affected and how they are going to raise the rent on these people should they have to stay after this deadline.

Mr. JOHNSON. Well that is very good information to have because we realize that the leasing period is about up.

Mr. BONELLI. Yes, sir.

Mr. JOHNSON. And we have discussed quite a bit the probability of those living in the homes being able to purchase the mobile home. Mr. BONELLI. Yes, sir; but if the people living in the homes purchase them they must purchase them through the lessors the people who provide them to the Government. I know of one specific example of a person from Claremont Harbor which is below Pass Christian. This woman was living on a pension, or relief, or something, and was told that August 18 was her deadline. A friend found the lessor of the home and tried to purchase it for her inasmuch as it was all set up. She was old and it was a disruption to her way of life to move. And this particular lessor would not dispose of this one mobile home. That, of course, was his preorgative to do so. I am making one available to them now. I am a small lessor. I really have no part of the leasing business. I think there is a better way of doing this. I have no ax to grind, but these things are being flooded now on the market by these lessors. There is a notice of an auction here which I have that went on down on the coast to show how these things are going to be dumped on the market. Well, there is one way to get around this for a dealer to buy them himself and move to other parts of the State.

Mr. JOHNSON. I imagine there will be many people participating in

the auction.

Mr. BONELLI. There were quite a few. But we think the Government should buy these mobile homes and stockpile them on military

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installations and other Government property. These things have wheels on them. They can move. They can be taken anywhere in the United States from one point to another, even to the furthest point within 48 hours. They should go further than they have been in housing. They should have restroom facilities, temporary grocery stores and all these things. There was nothing left on the gulf coast when Camille struck. Milk was going for $5 a gallon, if you could find it.

We have said something here that the Government will bail these people out and they did in Camille, but we don't think they went about it in the right way. Of course it was better to do it that way than no way at all. We are well aware of that and we want to point that out. But we think the Government should put these things in strategic locations, have them available to move on their own or by independent transporters and make them available to the people when they need them without all the red tape. When a person is out of a home you have to see about getting them a home or anything else and it is catch as catch can. It was pandemonium.

Mr. CLAUSEN. That is one of the reasons we do have these hearings because I am sure you can agree what perspective hindsight provides We are always looking for a better way of doing things.

Mr. HUMPHREYS. That is my purpose in being here.

Mr. BONELLI. I really have no other statement unless there are some questions.

Mr. HUMPHREYS. There is one other question we also made previously in the Senate, and that is that when mobile homes are purchased by the Government of course they would not necessarily be normal models. In other words, the use these mobile homes are put to is rather rigorous, and under the circumstances, of course, when they had a great many units Mr. Bonelli was telling me earlier that many of the mobile homes that were delivered particularly after the quantity. on the sales lots was exhausted, the quality of these mobile homes made in a rush was not good. There were very serious things wrong and he sold many parts. People would come in and the refrigerators weren't all there for example. All kinds of problems occurred, leaking roofs and everything else because of the rush that the manufacturers were put to in order to attempt in good faith to meet these needs for which they did their best. Our point was that if they are purchased it is more economical for the Government in the first place because the lease is expensive if they were properly built and designed for that purpose. Then, of course, they could be put in these five areas I believe the previous witnesses testified most of these disasters seem to occur of this type. So we think the quality of the homes would be much, much better if built to that specification and not necessarily a great deal more expensive.

Mr. BONELLI. Probably less expensive if they were put out under bid to the manufacturers. They would go to the manufacturers and let them bid on it. But put out a home that will do our industry good and do it justice and give us a better name than what we have had to cope with these 5,000 make-shift devices that have been delivered on the coast at great expense to the Government.

Mr. JOHNSON. I do believe in Camille this was a situation that the mobile home people came in and offered what they had and the need

there was much greater than what they could produce immediately. So they went into this hurried-up construction and moved these in under lease provisions, and they were discussing it quite thoroughly when they entered into the lease agreements because they were not too cheap as you know.

Mr. HUMPHREYS. They don't want to renew them either.

Mr. BONELLI. As one illustration, there was a family down there told that their home was ready to move into. They turned on the jet to the gas stove. The stove was hooked to a butane tank. The natural gas was gone. Immediately out of the jet of the cook stove there shot up water. The guy was right panicky. There are a great many Catholic people down in that area and the first thing he did was go to the priest. He told the priest I turned on the gas stove and water came out. What shall I do? The priest said to report it to the proper authorities. He said, in the meantime I would not use the toilet, flush it and strike a match. It was just that bad.

Mr. JOHNSON. We want to thank you gentlemen for coming here and giving us the benefit of your testimony and the facts on the availability of trailers. The situation that you face down there and the newspaper article is very good information.

Mr. BONELLI. Thank you, sir.

Mr. CLAUSEN. One question. This, of course, would relate to the frequency of occurrence. How long have you lived in that area?

Mr. BONELLI. I have lived in Mississippi all my life, 54 years, sir. Mr. CLAUSEN. How many times have you experienced a similar situation to this? Now I realize that Camille was a real extreme situation.

Mr. BONELLI. I would say at least once every 4 to 5 years something happens of some magnitude.

Mr. CLAUSEN. Because this tends to tie in. As you pointed out, you do have the mobile capability.

Mr. BONELLI. That is right.

Mr. CLAUSEN. And it seems to tie in. Maybe the concentration of effort should be on providing the necessary health and sanitation facilities in an area, a certain area so that you could actually accommodate people during the time that a disaster is likely to occur in the region. I mean you are not going to pinpoint which community is going to be hit as you can readily understand.

Mr. BONELLI. No.

Mr. CLAUSEN. Does that tie into what you see to be the situation? Mr. BONELL. Yes, it does. The mobility seems to be the best thing, I believe.

Mr. CLAUSEN. And we need these receiving stations in the event that a disaster is likely to strike based on past experiences. I see you nodding your head.

Mr. HUMPHREYS. They could go 500 miles in the other direction in 1 day really.

Mr. BONELLI. The facilities are there at Keesler Air Force Base, near Biloxi. How do you know, but within a 5-year period, there will be an earthquake or tornado somewhere else? In fact, there was a tornado in Corinth, Miss., this past winter. Hundreds of these mobile homes of HUD were moved up there. That is the flexibility of this.