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In the Military Construction Act of 1962, authority was provided to establish the Department of Defense family housing management account to improve administration of the military family housing program. The account was established as of July 1, 1962, and was funded by transfers of amounts appropriated for support of family housing activities for 1963 in the Military personnel; Operation and maintenance; Research, development, test, and evaluation; and Military construction appropriations. These transfers amounted to $596.9 million. In addition, the $89.4 million unobligated balance of the Wherry housing revolving fund and $15.1 million of unobligated funds available for family housing in the June 30, 1962, balances of the military construction appropriations, were

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transferred to the housing management account. Together with anticipated reimbursements in the amount of $5.2 million, the total amount available for support of the family housing program in 1963 is estimated at $706.6 million.

For the 1964 program, authority is being requested in the 1963 military construction authorization legislation to support the family housing program by the appropriation of $734.4 million directly to the Defense housing management account (Family housing, Defense). Appropriation authority of $250 million is proposed for construction of additional family housing units, to acquire additional Wherry housing, and to improve existing family housing units. Appropriation authority of $489.6 million is proposed to operate and maintain family housing and related facilities, to lease family housing units, and to amortize the indebtedness assumed under the Capehart, Wherry and surplus commodity housing programs.

General and special funds:

FAMILY HOUSING, DEFENSE

(FAMILY HOUSING MANAGEMENT ACCOUNT)

For expenses of family housing for the Army, Navy, Marine Corps, Air Force, and Defense Agencies, for construction, including acquisition, replacement, addition, expansion, extension and alteration, and for operation, maintenance, and debt payment, including leasing, minor construction, principal and interest charges and insurance premiums, as authorized by law, $734,400,000, to be obligated and expended in the 501(a) of Public Law 87-554, in not to exceed the following amounts: Family Housing Management Account established pursuant to section

For the Army:

Construction, $57,400,000;

Operation, maintenance, and debt payment, $188,290,000. For the Navy and Marine Corps:

Construction, $94,700,000;

Operation, maintenance, and debt payment, $95,981,000. For the Air Force:

Construction, $97,850,000;

Operation, maintenance, and debt payment, $197,583,000. For Defense agencies:

Construction, $50,000:

Operation, maintenance, and debt payment, $2,546,000: Provided, That the unobligated balances in the Family Housing Management Account as of June 30, 1963, shall remain available herein. (76 Stat. 223, 236; authorizing legislation to be proposed.)

MORITY OF MICHIGAN LIBRARICO

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1. Construction-a. Construction of new housing. In addition to the construction of new family housing units and associated facilities, this includes related land acquisition and site preparation, and the initial outfitting of housing with fixtures and other equipments which are integral components thereof, including major appliances. Facilities associated with family housing units include roads, driveways, walks, and utility systems which primarily serve the family housing units, and community facilities which are integral to a housing area and are provided for use by the residents. Family housing requirements have increased substantially in recent years due to the increasing marital rate among career military personnel. Funds were appropriated in 1963 for construction of 7,500 units of new family housing. It is proposed to construct an additional 12,100 units in 1964. b. Acquisition of Wherry housing.-This consists wholly of the acquisition of Wherry family housing units and related facilities as authorized (69 Stat. 652, as amended). Through the end of 1962, 72,771 units of such housing were acquired at a total cost of $650.3 million. The planned acquisition of 6,210 units in 1963 and 2,023 units in 1964 is expected to complete this program.

c. Construction improvements.-This provides for the construction necessary to bring inadequate public quarters up to the established standards. Provision is also made for improvements to Defense-owned family housing units, including acquired Wherry housing, by alteration and replacement. Conversion of existing facilities to family housing use is also included. It is planned to complete the rehabilitation necessary to bring all of the acquired Wherry housing up to public quarters standards by the end of 1964 at a cost of $41.7 million in 1963 and $6.4 million in 1964. Improvements to other family housing facilities are estimated to cost $10.4 million in 1963 and $18.8 million in 1964.

activity which cannot be included in the foregoing sub-
activities. In 1963 these costs were as follows: $3 million
for the payment to the sponsor of certain Air Force
family housing units in Spain under the agreement entered
into for the occupancy of this housing; and $31 thousand
for commercial title search and title insurance for the
Capehart housing projects on which the mortgagee re-
quired such search and insurance. No requirements are
anticipated under this subactivity in 1964.
2. Operation, maintenance, and debt payment-a. Opera-
tion.-This provides for the expense of operating military
family housing facilities, including the provision of
utilities and other direct supporting services. It provides
also for the initial outfitting of public quarters with furni-
ture and other personal property, including the mainte-
nance and replacement of such furnishings. Operating
expenses are estimated at $182.5 million in 1963 and $183.6
million in 1964. Also included is the expense of leasing
housing for use as public quarters. The leasing of 7,462
units in 1963 is estimated at $12.4 million and 9,865 units
in 1964 at $18.6 million.

b. Maintenance of real property.-This provides for
the maintenance and repair of family housing units
and related facilities and the roads, driveways, walks,
utility systems, and grounds care associated with family
housing projects; and the maintenance, repair and re-
placement of fixtures and other equipment which are in-
tegral components of a family housing unit, including
major appliances. It also provides for those incidental
alterations to family housing units for which the total
expenses at each installation for such projects within a
year do not exceed $250 for any one family unit in any
case, and an average of $50 per family unit for each in-
stallation consisting of ten or more family units. Im-
provement projects beyond these limitations are provided
for under the construction subactivity, Construction im-
provements. With respect to both operation and main-
direct relation to the increased number of family housing
tenance of real property, program costs increase in 1964 in
units expected to be operated and maintained:

Number of units at year-end..

1962 actual 1963 estimate 1964 estimate
357,165
357,757

365,043 366,272

370,418
371,872

d. Advance planning and design.-Preliminary studies are made in connection with the development of additional family housing facilities, including surveys of community assets, studies for site adaptation and determination of type and design of units. Also included are working drawings, specifications and estimates, project Average number of units.. planning reports and final design drawings of family housing construction projects. The funds provided in 1963 and requested in 1964 for these purposes include $1 c. Debt payment.-Payments are made on the outstandmillion in each year to provide for the costs of preliminary mortgages, and for interest charges. Also included are ing principal amounts of Capehart and Wherry housing studies and advance planning and design which are incurred on proposed construction projects which subse-poration in 1964 for a part of the debt due for foreign cur$10 million for payments to the Commodity Credit Corquently may not be included in approved construction

programs.

e. Rental guarantee payments.-This consists wholly of the authorized (66 Stat. 622) payment of amounts to private sponsors of family housing projects built in foreign countries for use by Defense personnel. Such amounts become due under agreements to maintain a guaranteed 95% occupancy level for a specified number of years. Of the $1.2 million requested for 1964, $0.7 million is estimated as the amount required for payment to sponsors of projects where the guarantee of 95% occupancy may not be met. The remaining $0.5 million is required to provide for the 1964 increment of rental guarantees on such housing in Morocco which is expected to be vacated during that year.

1. Other expenses. This consists of those costs of the family housing program under the Construction budget

rencies utilized to construct family housing and related
facilities in foreign countries. These currencies were
made available for this purpose from the sale of surplus
agricultural commodities to foreign countries. Miscella-
neous expenses anticipated in connection with the Cape-
hart mortgagor corporations required to be established
pursuant to the authority to incur mortgage debt to build
such housing are also included.

d. Mortgage insurance premiums.-This consists wholly
of amounts required to pay premiums due on mortgage
tion: (1) through the Armed Services Housing Mort-
insurance provided by the Federal Housing Administra-
gage Insurance Fund on Capehart and Wherry mortgages
assumed by the Department of Defense; and (2) for
mortgages assumed by active military personnel for
housing purchased under the provisions of section 124,
Public Law 83-560.

MICRSITY OF MICHIGAN LIDRANIKO

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