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The cost of operating mortgage service functions continued at a very low rate-17/100 of 1 percent of the unpaid principal.

Management

Distressed families of veterans and servicemen now have perference for admission to the small amount of Lanham Act housing awaiting disposition, except that in permanent projects when the needs of this group have been met, other distressed families may be admitted. In designated defense areas, admission policies have been relaxed in favor of distressed inmigrant workers or servicemen.

Only families of distressed inmigrant workers or servicemen at plants or installations in specified defense housing areas are eligible for Public Law 139 temporary housing. This housing was provided with appropriated funds to meet housing needs in defense areas. The HHFA Administrator delegated to PHA the administration (except for programing and deprograming) of this small program. By the end of 1954, 11,938 units in 65 projects were under active management. Another 250 units were in planning. The balance of 3,600 units had either been terminated or disposed of.

To avoid competition with private housing, PHA restricts occupancy in Lanham and defense housing to families who are unable to secure private housing within their means. The agency has established income limits in certain areas to prevent such competition.

PHA issued procedures late in 1954 to assure that rents in Lanham housing were equivalent to those prevailing in the locality for comparable private accommodations. Annual comparability studies are also made to assure comparable rents.

In compliance with legislative directives, PHA makes annual payments in lieu of taxes on its emergency housing. These payments approximate full real property taxes that would be paid if the property were not tax exempt. If the projects do not get the same public services furnished other property owners, PHA makes appropriate deductions from its tax payments. Authorized tax payments for the last fiscal year totaled $11,500,289.

Military Clearances

Following the outbreak of the Korean conflict in 1950, the Administrator placed all Lanham Act projects under a disposition suspension order, and release for disposition required prior clearance with the military. Although a substantial number of units was released on a piecemeal basis from the order, PHA was anxious to obtain a greater number of military clearances to accelerate disposition. Accordingly, in March 1954, the Department of Defense was requested to identify the projects in which they had a continuing interest, and which PHA

should not schedule for disposition. Late in July, the Department submitted to PHA a list of 81 projects, with 31,417 units, required for continued military use. By virtue of this action, many projects were released from the suspension order.

PHA and Defense representatives met in September 1954 to review problems which arose out of the operation and ultimate disposition of the housing then under the suspension order. It was agreed that the Department would again review its need for Lanham housing remaining under Federal control. The Department was also asked to request transfer of housing determined to be permanently useful to it. This action is necessary in the case of temporary housing to be removed, because (1) leases on land underlying temporary projects expire in June 1956, and the dwellings must be vacated before the land is returned, and (2) temporary housing on federally owned land must be removed expeditiously in accordance with statutory requirements. Unless these projects are transferred to the military, tenant intake will be stopped on June 30, 1955, preparatory to removal of the buildings from the land, in all cases where such action is necessary. In the case of permanent and temporary housing remaining on site, the Department was informed that PHA had no long-range plan for its continued operation. Sale, either to tenants or to investors, would not remove such dwellings from the housing inventory, but would have the net effect of removing the Federal Government's control over occupancy. Therefore, on June 30, 1955, PHA plans to release from the suspension order permanent and temporary housing remaining on site, not previously transferred to military establishments, and proceed with other methods of disposal.

SECTION 4
ADMINISTRATION

Organization

On January 18, 1954, 6 months after Commissioner Charles E. Slusser assumed office, a major reorganization of PHA became effective, in accordance with his determination to eliminate overlapping functions, improve the administration of the agency's housing programs, and reduce operating expenses.

Principal changes in the administrative staff included the creation of a Deputy Commissioner with supervision over all PHA's activities. The position of First Assistant Commissioner was redesignated Assistant Commissioner. On November 22, 1954, the office of Assistant to the Commissioner (Compliance) was established. The Compliance Officer assists the Commissioner in formulating and carrying out policies and procedures designed to assure the efficient and impartial administration of PHA's programs, and strengthen the existing safeguards against the possibility of improper activities. In accordance with the intent of Congress, similar posts were created in the entire Federal establishment.

At the end of 1954 there were 7 field offices-New York, Chicago, Atlanta, Fort Worth, San Francisco, Santurce (Puerto Rico), and Washington, D. C., the last added during the year.

Budget and Employment

The total number of employees in PHA dropped from about 4,100 in December 1953 to some 3,300 a year later.

PHA's budget for administrative expenses in the fiscal year which ended on June 30, 1954, amounted to $10,975,000. The budget for the ensuing fiscal year which started July 1, 1954, amounted to $10,950,000 consisting of a $7,350,000 appropriation for the administration of the United States Housing Act program, and $3,600,000 advanced from the Office of the HHFA Administrator, for the administration and disposition of the emergency housing programs.

Central-Field Office Relationships

During 1954, the Commissioner met with field office directors and attorneys in Washington, D. C. The directors met in March, June,

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PHA FULL-TIME EMPLOYMENT DEC. 1943 - DEC. 1954

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and October; the attorneys in November. The directors reviewed changes in operating procedures in the low-rent public housing program necessitated by the "workable program" and urban renewal provisions in the Housing Act of 1954. They also discussed the accelerated disposition program, budget assumptions, legislation, and relationships with other HHFA constituents-principally the newly created Urban Renewal Administration.

The field office attorneys discussed the revised annual contributions contract and a uniform schedule of legal costs and expenses in the low-rent public housing program.

Real Property Inventory

A special inventory of real property held by PHA as of December 31, 1953, was made at the request of the General Services Administration. The inventory covered about 1,100 projects, originally worth about $950 million. It included low-rent, farm labor, greentowns, Lanham, defense, and veterans reuse projects. It was broken down to show areas and value of land, dwelling structures, nondwelling structures and facilities, sewer, water, gas, and electrical distribution systems, and paved areas. GSA had requested from every Federal agency an accounting of its real property holdings. The individual agency reports are to be published by GSA as a Consolidated Inventory.

Prior to this special inventory, PHA had been regularly maintaining an inventory of its real property holdings.

Combined Charity Fund Drive

During 1954, the numerous fund solicitations in PHA were found to be time- and manpower-consuming, and frequently did not meet the quotas set by the fund-raising agencies. For example, during January and February, six fund-raising drives were held in the Central Office.

In order to assure equitable contributions to the groups and reduce the number of drives, the Commissioner declared a 3-month moratorium on campaigns beginning June 1. During that period, the Office of the Special Assistant to the Commissioner (Liaison) planned and conducted a combined charity fund drive.

The plan, which was put into effect only after it had been approved by Central and Washington field office employees, called for pledges by each participating employee, with payment to be spread over six pay periods.

Almost 80 percent of the Central Office staff signed pledge cards, while other employees made their contributions as they saw fit. No funds are to be solicited in PHA again until August 26, 1955. Em

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