Letters, statements, etc., submitted for the record-Continued Reid, Ed E., executive director, Alabama League of Municipalities, on behalf of the American Municipal Association: Statement.. Riley, George D., legislative representative, AFL-CIO: Statement__ Ryan, Hon. William Fitts, a Representative in Congress from the State Stucky, Conrad C., Bureau of Business and Economic Research, State Thompson, Hon. Frank, Jr., a Representative in Congress from the Toll, Hon. Herman, a Representative in Congress from the State of Excerpt of letter from the president of the Philadelphia City Council, to Hon. Herman Toll, February 8, 1961. Will, Philip, Jr., president American Institute of Architects: Excerpt from a resolution passed by American Institute of Architects calling for the establishment of a Department of Urban Affairs___ Williamson, John C., secretary-counsel, National Association of Real Younger, Hon. J. Arthur, a Representative in Congress from the DEPARTMENT OF URBAN AFFAIRS AND HOUSING WEDNESDAY, MAY 24, 1961 HOUSE OF REPRESENTATIVES, EXECUTIVE AND LEGISLATIVE REORGANIZATION SUBCOMMITTEE OF THE COMMITTEE ON GOVERNMENT OPERATIONS, Washington, D.C. The subcommittee met at 10 a.m., in room 1501-B, Hon. William L. Dawson (chairman of the subcommittee) presiding. Present: Representatives William L. Dawson, Dante B. Fascell, and Kathryn E. Granahan. Also present: Elmer W. Henderson, subcommittee counsel; James A. Lanigan, associate general counsel; Arthur Perlman, subcommittee investigator, and Dolores Fel'Dotto, acting clerk. Chairman DAWSON. This meeting of the Subcommittee on Executive and Legislative Reorganization has been called to consider H.R. 6433, a bill introduced by our fellow committee member, Hon. Dante B. Fascell, of Florida, to carry out a recommendation to Congress of the President of the United States to establish a Department of Urban Affairs and Housing. There have been several bills introduced on this subject matter, and I am happy to see Mr. Younger with us, the one who started out some years ago creating interest in this subject matter. He also introduced a bill. President Kennedy's message to Congress on this matter was transmitted to the Speaker on April 18 and subsequently referred to our committee. A copy of the letter and attachments will be read into the record during this hearing. The bill will give Cabinet status to the new department and full recognition and consideration to the problems of urban and metropolitan areas and to housing for the people of the United States. The present Housing and Home Finance Agency and the constituent units are transferred to the new department. This committee has long been interested in the problems of our cities and their relationship to the Federal Government. Congressman Fascell and Congressman Younger, a former committee member, have contributed greatly to our thinking on this subject. We have seen the great expansion in population in the cities and the necessary increase in governmental services. What was once a local problem is now a national problem and demands the close attention of our National Government. One method of attack is presented in this legislation. We shall give it our careful consideration. We have a most distinguished group of witnesses today. The first is our colleague, Congressman Fascell. Without objection, a copy of the bill and the President's message will be put in the record at this point. 1 (H.R. 6433 and the President's message follow :) [H.R. 6433, 87th Cong., 1st sess.] A BILL To establish a Department of Urban Affairs and Housing and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the Department of Urban Affairs and Housing Act. DECLARATION OF NATIONAL URBAN AFFAIRS AND HOUSING POLICY SEC. 2. (a) The Congress hereby declares that the general welfare and security of the Nation and the health and living standards of our people require, as a matter of national purpose, sound development and redevelopment of our urban communities in which the vast majority of our people live and work. The Congress further declares that the national policy for the attainment of this purpose shall be to encourage and facilitate the efforts of our urban communities to develop and carry out local programs to meet effectively the needs resulting from urban, suburban, and metropolitan growth and change, including the preparation of comprehensive plans for necessary community development and redevelopment; the elimination of slums and blight; the provision of decent homes in a suitable living environment for all American families; the provision of adequate locations for industrial and commercial facilities to create new employment opportunities and to assist in the establishment of an increased and more stable tax base; the promotion of effective mass transportation within urban areas and the coordination of transportation plans with the needs of urban communities as part of the overall planning for such communities; the provision of additional public facilities and improvements commensurate with current and future needs; the provision of open areas, parks, and other facilities for recreation; and the fostering of the provision or expansion of facilities for educational and cultural pursuits, thus contributing to the improvement of conditions under which people live and work and under which business enterprise may expand and prosper, to an economy of maximum production, employment, and purchasing power, and to the growth and security of the Nation. To carry out such national purpose and policy, and in recognition of the increasing importance of urban communities in our national life, the Congress finds that establishment of an executive department is desirable to achieve the best administration of the principal programs of the Federal Government which provide assistance for housing and for the development and redevelopment of our urban communities; to give leadership within the executive branch in securing the coordination of the various Federal activities which have a major effect upon urban, suburban, or metropolitan development and redevelopment; to encourage the solution of urban, suburban, and metropolitan problems through State, local, and private action, including promotion of interstate, regional, and metropolitan cooperation; and to provide for full and appropriate consideration, at the national level, of the needs and interests of urban areas and of the people who live and work in them. (b) The Department of Urban Affairs and Housing established by this Act, and any other departments, agencies, or instrumentalities of the United States having functions, powers, or duties, under this or any other Act, which have a major effect upon urban, suburban, or metropolitan development and redevelopment, shall exercise such functions, powers, and duties in accordance with the national policy declared by this Act and in such manner as will facilitate sustained progress toward the attainment of national purpose established by this Act. ESTABLISHMENT OF DEFICIENCY SEC. 3. (a) There is hereby established at the seat of government an executive department to be known as the Department of Urban Affairs and Housing (hereinafter referred to as the "Department"). There shall be at the head of the Department a Secretary of Urban Affairs and Housing (hereinafter referred to as the "Secretary"), who shall be appointed by the President by and with the advice and consent of the Senate. The Department shall be administered under the supervision and direction of the Secretary. The Secretary shall receive compensation at the rate now or hereafter prescribed by law for the heads of executive departments. (b) The Secretary shall, among his responsibilities, conduct continuing comprehensive studies, and make available findings, with respect to the problems of housing and urban development; advise the President with respect to Federal programs and activities contributing to the achievement of national policy declared by this Act; develop and recommend to the President policies for fostering the orderly growth and development of the Nation's urban communities; exercise leadership at the direction of the President in coordinating Federal activities affecting urban areas; provide technical assistance and information to State and local governments in developing solutions to urban problems; and encourage comprehensive planning by the State and local governments with a view to coordinating Federal, State, and community development activities at the local level. UNDER SECRETARY AND OTHER OFFICERS SEC. 4. (a) There shall be in the Department an Under Secretary, three Assistant Secretaries, and a General Counsel, who shall be appointed by the President by and with the advice and consent of the Senate, who shall receive compensation at the rate now or hereafter provided by law for under secretaries, assistant secretaries, and general counsels, respectively, of executive departments, and who shall perform such functions, powers, and duties as the Secretary shall prescribe from time to time. (b) There shall be in the Department an Administrative Assistant Secretary, who shall be appointed, with the approval of the President, by the Secretary under the classified civil service, who shall perform such functions, powers, and duties as the Secretary shall prescribe from time to time and whose annual rate of compensation shall be the same as that now or hereafter provided by law for administrative assistant secretaries of executive departments. TRANSFERS TO DEPARTMENT SEC. 5. (a) Except as otherwise provided in subsection (b) of this section, there are hereby transferred to and vested in the Secretary all of the functions, powers, and duties of the Housing and Home Finance Agency, of the Federal Housing Administration and the Public Housing Administration in that Agency, and of the heads and other officers and offices of said agencies. (b) The Federal National Mortgage Association, together with its functions, powers, and duties, is hereby transferred to the Department. The next to the last sentence of section 308 of the Federal National Mortgage Association Charter Act and the item numbered "(39)" of section 106(a) of the Federal Executive Pay Act of 1956 are hereby repealed, and the position of the President of said Association is hereby allocated among the positions referred to in the proviso of section 7 (c) hereof. CONFORMING AMENDMENTS SEC. 6. (a) Section 19 (d) (1) of the Act of June 25, 1958, is hereby amended by striking out the period at the end thereof and inserting a comma and the following: "Secretary of Health, Education, and Welfare, Secretary of Urban Affairs and Housing." (b) Section 158 of the Revised Statutes (5 U.S.C. 1) is amended by adding at the end thereof: "Eleventh. The Department of Urban Affairs and Housing." (c) The amendment made by subsection (b) of this section shall not be construed to make applicable to the Department any provision of law inconsistent with this Act. ADMINISTRATIVE PROVISIONS SEC. 7. (a) The personnel employed in connection with, and the assets, liabilities, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, or other funds held, used, arising from, or available or to be made available in connection with, the functions, powers, and duties transferred by section 5 of this Act are hereby transferred with such functions, powers, and duties, respectively. (b) No transfer of functions, powers, and duties shall at any time be made within the Department in connection with the secondary market operations of the Federal National Mortgage Association unless the Secretary finds that the rights and interests of owners of outstanding common stock issued under the Federal National Mortgage Association Charter Act will not be adversely affected thereby. (c) The Secretary is authorized, subject to the civil service and classification laws, to select, appoint, employ, and fix the compensation of such officers and employees, including attorneys, as shall be necessary to carry out the provisions of this Act and to prescribe their authority and duties: Provided, That, any other provision of law to the contrary notwithstanding, the Secretary may fix the compensation for not more than nine positions in the Department at annual rates not more than $1,500 in excess of the compensation now or hereafter fixed by law for grade 18 of the General Schedule established by the Classification Act of 1949. (d) Subject to the standards and procedures prescribed by section 505 of the Classification Act of 1949, the Secretary is authorized to place not to exceed thirty-five positions in grades 16, 17, or 18 of the General Schedule established by such Act, and such positions shall be in addition to (i) the number of positions authorized by section 505 of the Classification Act of 1949 to be placed in such grades and (ii) the number of positions in such grades which were allocated under section 505 to any agency or organizational unit the functions, powers, and duties of which are transferred pursuant to this Act. (e) The Secretary may delegate any of his functions, powers, and duties to such officers and employees of the Department as he may designate, may authorize such successive redelegations of such functions, powers, and duties as he may deem desirable, and may make such rules and regulations as may be necessary to carry out his functions, powers, and duties. The second proviso of section 101 (c) of the Housing Act of 1949 is hereby repealed. (f) The Secretary may obtain services as authorized by section 15 of the Act of August 2, 1946, at rates not to exceed $100 per diem for individuals. (g) The Secretary is authorized to establish a working capital fund, to be available without fiscal year limitation, for expenses necessary for the maintenance and operation of such common administrative services as he shall find to be desirable in the interest of economy and efficiency in the Department, including such services as a central supply service for stationery and other supplies and equipment for which adequate stocks may be maintained to meet in whole or in part the requirements of the Department and its agencies; central messenger, mail, telephone, and other communications services; procurement and management of office space; central services for document reproduction and for graphics and visual aids; and a central library service. In addition to amounts appropriated to provide capital for said fund, which appropriations are hereby authorized, the fund shall be capitalized by transfer to it of such stocks of supplies and equipment on hand or on order as the Secretary shall direct. Such fund shall be reimbursed from available funds of agencies and offices in the Department for which services are performed at rates which will return in full all expenses of operation, including reserves for accrued annual leave and for depreciation of equipment. (h) The Secretary shall cause a seal of office to be made for the Department of such device as he shall approve, and judicial notice shall be taken of such seal. ABOLITIONS SEC. 8. There are hereby abolished the Housing and Home Finance Agency, the Federal Housing Administration, the Public Housing Administration, and the National Housing Council, the offices of Housing and Home Finance Administrator, Federal Housing Commissioner, Public Housing Commissioner, Deputy Housing and Home Finance Administrator, Urban Renewal Commissioner, and Community Facilities Commissioner, the position of director referred to in section 106(a)(1) of the Housing Act of 1949, the position of director referred to in section 304 of the Housing Act of 1948 and any other positions heretofore established by law in the aforesaid agencies, but not positions established by law in the Federal National Mortgage Association. ANNUAL REPORT SEC. 9. The Secretary shall, as soon as practicable after the end of each calendar year, make a report to the President for submission to the Congress on the activities of the Department during the preceding calendar year. SAVINGS PROVISIONS SEC. 10. (a) No suit, action, or other proceeding lawfully commenced by or against the head of any agency or any other officer abolished by the provisions |