AKING AN ADDITIONAL APPROPRIATION FOR VETERANS' HOUSING AND RELATED EXPENSES THURSDAY, MARCH 28, 1946 UNITED STATES SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, D. C. The subcommittee met, at 10:30 o'clock, pursuant to notice, Hon. enneth McKellar (chairman of the subcommittee) presiding. Present: Senators McKellar, Hayden, Thomas, Ball, and Ferguson. Senator MCKELLAR. The subcommittee has before it this morning Couse Joint Resolution 328, a joint resolution making an additional ppropriation for veterans' housing and related expenses, together ith the report thereon from the House of Representatives. (H. J. Res. 328, together with the report thereon, is as follows:) [H. J. Res. 328, 79th Cong., 2d sess.] DINT RESOLUTION Making an additional appropriation for veterans' housing and related expenses Resolved by the Senate and House of Representatives of the United States of America n Congress assembled, That there is hereby appropriated, out of any money in the Treasury not otherwise appropriated, $253,727,000, to remain available until xpended, to enable the National Housing Administration to carry out the purposes of title V of the Act of October 14, 1940, as amended (42 U. S. C. 1521), ubject, however, to the enactment of the bill (§. 1821) “to amend section 502 of he Act entitled 'An Act to expedite the provision of housing in connection with national defense, and for other purposes', approved October 14, 1940, as amended, so as to authorize the appropriation of funds necessary to provide an additional one hundred thousand temporary housing units for distressed families of servicemen and for veterans and their families", and to the provisions of such bill as nacted. [H. Rept. No. 1816, 79th Cong., 2d sess.l The Committee on Appropriations, to whom was referred the joint resolution (H. J. Res. 328) entitled "Joint resolution making an additional appropriation for veterans' housing and related expenses," report the measure with a favorable recommendation for its early consideration and passage by the House. The joint resolution ensues from a proposal of the Bureau of the Budget transmitted to the Speaker by the President on March 12, 1946 (H. Doc. 503 of the present session). The proposal-and the committee's recommendation accords therewith-is to provide an additional appropriation of $253,727,000 for the provision of approximately 102,000 additional units of temporary housing for veterans of World War II and their immediate families through the reuse of existing war housing or facilities surplus to other Federal agencies, and for administrative expenses incident to such undertaking, including administrative expenses during the remainder of the fiscal year 1946 of the Housing Expediter and Federal agencies designated by him to assist in carrying out the presently authorized veterans' housing program developed in accordance with Executive Order 9886, dated January 26, 1946, the text of which follows: "By virtue of the authority vested in me by the Constitution and the laws of the United States, including Title I of the First War Powers Act, 1941 (55 Stat. 838), 1 and the War Mobilization and Reconversion Act of 1944 (58 Stat. 785), and as President of the United States, it is hereby ordered as follows: 1. The Housing Expediter, heretofore established in the Office of War Mobilization and Reconversion, in the exercise of his functions is, among other things authorized to: "(a) Formulate such plans and programs as are necessary to provide for an increased supply of housing accommodations of all kinds and, in particular, of homes available for sale or rental at moderate prices to veterans of World War II and their immediate families. "(b) Issue such orders, regulations, or directives to other executive agencies as may be necessary to provide for the exercise of their powers in a manner required by or consistent with the execution of the aforesaid plans and programs, and to coordinate the activities of such agencies directed to the execution of such plans and programs. Each executive agency shall carry out without delay the orders, regulations, or directives of the Housing Expediter, and shall, to the extent neeessary, consistent with governing statutes, modify its operations and procedures from time to time to conform to the directions of the Housing Expediter. "(c) Recommend to the President the enactment of such legislation as may be necessary to provide the authority to carry out such plans and programs formulated under this order as are not authorized under existing law. "(d) Consult and cooperate with other agencies of the Federal Government, State and local Governments, industries, labor, and other groups, both national and local, with respect to the problems created by the housing emergency and the steps which can be taken to remedy it. "2. The executive agencies of the Government shall exercise their emergency powers and other powers for the purpose of aiding in the solution of the problems created by the existing housing emergency, the alleviation of which is vital to an orderly transition from war to peace.' Public Law 292, Seventy-ninth Congress, approved December 31, 1945, authorized an appropriation of $160,000,000 for providing housing for distressed families of servicemen and for veterans and their families, including administrative expenses in connection therewith, and, in addition, the employment for such purposes, of unobligated funds made available under title I of the so-called Lanham Act of October 14, 1940, as amended. Pursuant to such authorization, $191,900,000 was appropriated in the First Deficiency Appropriation Act, 1946, approved December 28, 1945, such amount including $31,900,000 of unobligated title I funds. The appropriation was made for the conversion and relocation, as emergency shelter for veterans, of publicly owned temporary structures such as military barracks, dormitories, and temporary war housing, and contemplated the provision of 100,000 units. That number is wholly inadequate. The fact is, the supply of structures for reuse is not adequate to supply the demands, which is largely due to an increase in veteran occupancy of war housing erected to meet demands in industrial areas. In February, 164,700 of such units were occupied by veterans, servicemen, and their families. However, it is estimated that there remains available for conversion and relocation war housing, surplus where presently situated, adequate to provide approximately 92,350 units, and for conversion on site approximately 10,000 units. The appropriation proposed is to make such units available. It is made up as follows: For completion of previous program of 100,000 units.. For administrative expenses.. Total... $5, 000, 000 243, 875, 000 4,852, 000 253, 727, 000 The additional amount for the initial program results from a larger use of military barracks than previously contemplated by reason of the occupancy by veterans and their families of war housing originally intended to be converted and moved. The reconversion of barracks costs roundly $100 more per unit. That is the explanation, also, for the larger cost of the supplemental program. The unit cost of the supplemental program, which agrees with the revised unit cost of the initial program, follows: Family dwelling units to be moved.. $1,900 1,900 2,500 With the exception of $3,727,000 of the appropriation recommended, authorization is dependent upon the enactment of Senate bill 1821, and the effectiveness The House of the resolution is made dependent upon the enactment of such bill. The amount for administrative expenses ($4,852,000) is for personal and nonpersonal services, as follows: Civilian Production Administration: Increasing production of materials, deferment of nonessential construction, and channeling material flow to veterans' housing, balance of fiscal year 1946____ Department of Labor: Estimating requirements, recruiting and training of labor, and mediation of wage disputes and jurisdictional problems, balance of fiscal year 1946 Housing Expediter and National Housing Agency: Expediting the program, scheduling veterans' housing by type and locality, and securing maximum community participation, balance of fiscal year 1946 .. Total... $3, 320, 000 300, 000 1, 232, 000 4,852, 000 The additional amount of $3,320,000 is detailed on page 563 of the hearings on the second deficiency appropriation bill, 1946. The amount for personal services ($2,213,100) contemplates approximately 3,016 additional employees, made necessary by the need for the Civilian Production Administration to (1) take steps to insure the expanded production of scarce building materials; (2) assure proper distribution of materials; (3) reinstate construction controls through the issuance of a limitation order prohibiting nonessential or deferrable construction without specific authorization; (4) determine labor supply requirements for increased production; (5) approve or deny applications for nonresidential construction; (6) redistribute surplus materials; (7) maintain statistical controls on materials and prefabricated units produced; and (8) enforce provisions of the proposed limitation order and priorities on materials and equipment for producers, distributors, and contractors. Such functions, according to the testimony, can be performed only by a substantial strengthening of the Civilian Production Administration's Washington staff in all divisions concerned with or supporting the program and by a parallel strengthening of the agency's field organization. The additional amount of $300,000 for the Department of Labor contemplates 250 additional positions. This Department will have primary responsibility for those phases of the veterans' housing program which normally fall within its functions. Specifically, these include tripling the labor force in the construction industry within a year; the conciliation and arbitration of an increased volume of labor disputes which may arise, particularly in connection with the expansion of the prefabricated housing industry; adjustments of wage rates; the extension and expansion of apprentice training programs; and the collection and tabulation of data on employment and labor market conditions essential to the measurement of the progress of the housing program. Such tasks represent a substantial increase over and above the normal work load of the Department. The critical nature of the housing program makes it essential that there be no delay in the procurement and utilization of labor. The additional amount of $1,232,000 for the Office of the Housing Expediter and the National Housing Agency is analyzed on page 556 of the hearings on the second deficiency appropriation bill, 1946. Such analysis indicates 916 additional positions, at a cost of $666,273 up to June 30, 1946, and $565,727 for nonpersonal services. These additional amounts are not wholly essential to the accomplishment of the so-called reuse program. They are largely for implementing Executive Order 9886, previously quoted herein, and will serve to facilitate the commencement and prosecution of the larger program encompassed by H. R. 4761, which passed the House on March 7, 1946, wherein "The Congress declares that an emergency exists wherein there are insufficient facilities for housing large segments of the population, that large numbers of veterans of the armed forces are returning to civilian life in need of housing accommodations which are not available, and that it is necessary for the health and safety of the people that all facilities of the United States Government be made available and coordinated to obtain a maximum amount of housing." It is the purpose of the committee to require progress reports every 60 days of accomplishments under this program, such reports to show the number of units provided, where provided, the type, and the attendant expense. The matters embraced by the accompanying resolution were explained and justified to the committee by the newly appointed Housing Administrator and Housing Expediter, Hon. Wilson W. Wyatt. His testimony commences on page 538 of the hearings on the second deficiency appropriation bill. Senator MCKELLAR. Very well, gentlemen, we will hear from you. STATEMENTS OF WILSON W. WYATT, NATIONAL HOUSING ADMINISTRATOR AND HOUSING EXPEDITER; LYMAN S. MOORE, ASSISTANT ADMINISTRATOR, NATIONAL HOUSING AGENCY; LEON H. KEYSERLING, GENERAL COUNSEL, NATIONAL HOUSING AGENCY; R. E. O'HARA, BUDGET OFFICER, NATIONAL HOUSING AGENCY; PHILIP M. KLUTZNICK, COMMISSIONER, FEDERAL PUBLIC HOUSING AUTHORITY; PHILIP F. MAGUIRE, DEPUTY ADMINISTRATOR, CIVILIAN PRODUCTION ADMIN•ISTRATION; LYLE BELSLEY, EXECUTIVE OFFICER, CIVILIAN PRODUCTION ADMINISTRATION; HAROLD PRICE, GENERAL COUNSEL, CIVILIAN PRODUCTION ADMINISTRATION; AND JAMES E. DODSON, BUDGET OFFICER, DEPARTMENT OF LABOR VETERANS' HOUSING AND RELATED EXPENSES LARGE PERCENTAGE OF APPROPRIATION AS FOR REUSE PROGRAM Senator MCKELLAR. Will you tell us why this is necessary? Mr. WYATT. Mr. Chairman, and members of the committee, I am appearing this morning as National Housing Expediter, and with me is Mr. Lyman S. Moore, Assistant Administrator, National Housing Agency; Mr. Leon H. Keyserling, general counsel, National Housing Agency; Mr. O'Hara, budget officer. Also Mr. Klutznick, Commissioner, Federal Public Housing Authority; Mr. Philip F. Maguire, Deputy Administrator, Civilian Production Administration; and Mr. James E. Dodson, budget officer, Department of Labor. First of all, Mr. Chairman, I would like to emphasize that 98 percent of the appropriation is for the reuse program. PROGRAM DISTRIBUTION Senator MCKELLAR. How are these distributed generally? Mr. WYATT. Generally on a population basis which Commissioner Klutznick will be glad to go into specifically. Senator MCKELLAR. Thank you. Mr. WYATT. Approximately 35 percent went to educational institutions and approximately 65 percent are for communities. The limiting factor in this program is the available supply of structures for reuse. In recent months the Army and Navy have released a great many barracks suitable for panelizing and reerection into temporary family units. APPLICATIONS BY VETERANS TO ATTEND SCHOOLS Senator HAYDEN. As I understand the situation, more veterans have applied to attend schools than anticipated. Mr. WYATT. Yes, sir. Senator HAYDEN. They are all jammed full? USE OF SURPLUS ARMY AND NAVY BARRACKS Senator HAYDEN. How can you use the barracks? Mr. WYATT. They are panelized and moved into houses. They take approximately one-third new materials, including plumbing and other facilities not needed in the barracks. Senator BALL. How many units can you get out of a barracks? Senator BALL. You move these barracks complete, do you? Mr. WYATT. By truck and flatcar. Senator BALL. How many men do they accommodate normally? Mr. WYATT. The maximum is about 80 men. APPLICATIONS FROM UNIVERSITIES AND LOCAL GOVERNMENTS FOR HOUSING UNITS As evidence of the tremendous demand for this housing, as of February 21 of this year, there have been applications for 382,988 units made by 1,902 educational institutions and local governments which agreed to provide land and off-site facilities. The limiting factor in this program is the available supply of structures for reuse. In recent months the Army and Navy have released a great many barracks suitable for panelizing and re-erection into temporary family units. While the total supply of available structures for reuse has increased, there has also been a shift in type from temporary war housing units to military barracks. The cost of converting barracks QUESTION OF LABOR TO ACCOMPLISH HOUSING PROGRAM Senator HAYDEN. How about skilled men, labor to do the job? Mr. WYATT. The FPHA are handling the work, and they are doing that by contract. Senator HAYDEN. The help, I am getting at. Mr. WYATT. It has not been a major problem during the warSenator BALL. What will happen to the labor supplies if you ever get this program? 1 |