A summary of the funding program for fiscal year 1964 follows:

This program provides for the payment to private owners of the contractual costs to the Government of leasing family housing units for assignment as public quarters.

Program summary

Authorization is requested for the appropriation of $18,559,000 (included in sec. 602(5), title VI, military construction authorization bill, S. 1101) to fund these leases.

Authority for leasing is contained in 69 Stat. 324, 352, as amended (75 Stat. 96, 111 and 76 Stat. 239) and in Public Law 84-968.

A summary of the funding program for fiscal year 1964 follows:

This program provides for the maintenance and repair of family housing units and associated facilities, as well as incidental alterations, additions, expansions, and extensions which are permitted to be funded with maintenance funds.

Program summary

Authorization is requested for the appropriation of $124,729,000 (included in sec. 602(5), title VI, military construction authorization bill, S. 1101). A summary of the funding program for fiscal year 1964 follows:

This program provides for the payment of principal, interest, mortgage insurance premiums, and other expenses resulting from assumption by the Government of mortgages on Capehart housing.

Program summary

Authorization is requested for the appropriation of $120,366,000 (included in sec. 602 (5), title VI, military construction authorization bill, S. 1101). This amount, together with estimated reimbursements of $761,000 derived from rents charged civilian occupants of Capehart housing and permitted by law (sec. 405, title VIII, Public Law 84-345) to be used for payment of Capehart debt, will completely fund the fiscal year 1964 program of $121,127,000. A summary of the funding program for fiscal year 1964 follows:

This program provides for the payment of principal, interest, mortgage insurance premiums, and other expenses resulting from assumption by the Government of mortgages on acquired Wherry housing.

Program summary

Authorization is requested for the appropriation of $36,626,000 (included in sec. 602(5), title VI, military construction authorization bill, S. 1101) to fund this obligation of the Government.

A summary of the funding program for fiscal year 1964 follows:

This program provides for repayment to the Commodity Credit Corporation of the dollar equivalent of foreign currencies used in the construction of surplus commodity family housing in foreign countries.

Program summary

Authorization is requested for the appropriation of $10 million (included in sec. 602(5), title VI, military construction authorization bill, S. 1101) to fund this requirement.

Present practices required by law (10 U.S.C. 2681 (b)) involve a burdensome administrative procedure to determine the amount to be repaid to the Commodity Credit Corporation every 6 months. Amendment to this law is proposed (sec. 507, title V, military construction authorization bill, S. 1101) to permit annual pay. ment of a fixed amount until amounts owed are liquidated.

A summary of the funding program for fiscal year 1964 follows:

This program provides for the payment of premiums due on mortgage insurance provided by Federal Housing Administration for mortgages assumed by active military personnel for housing purchased by them.

Program summary

Authorization is requested for the appropriation of $4,405,000 (included in sec. 602 (5), title VI, military construction authorization bill, S. 1101) to fund this requirement.

Authority for these payments is contained in section 124, Public Law 83-560. A summary of the funding program for fiscal year 1964 follows:

Fiscal year 1964:

Army.

Navy.

Marine Corps.

Air Force_

Total__

Requested authorization amount (in thousands)

$1,020 1, 085

175

2, 125

4, 405

STATEMENT OF MAJ. GEN. W. R. SCHULER, U.S. ARMY, DIRECTOR OF INSTALLATIONS, OFFICE, DEPUTY CHIEF OF STAFF, LOGISTICS

Mr. Chairman and members of the committee, I am Maj. Gen. William R. Shuler, Director of Installations, Office of the Deputy Chief of Staff for Logistics, Department of the Army.

I appreciate this opportunity to outline the Army's fiscal year 1964 military family housing program. Our program seeks :

First, authorization to construct 1,743 new family housing units in the amount of $32.4 million. Second, authorization to construct facilities for 383 trailer units in the amount of $700,000. Third, authorization to eliminate substandard conditions in 1,031 public quarters at $4 million. Fourth, authorization for additional rental guarantee units overseas.

For your information, we intend to ask appropriations in the amount of (1) $47.6 million for construction of 2,511 new units, which includes 768 units previously authorized in Public Law 87-554, (2) $700,000 to construct 383 trailer sites, (3) $6.8 million for improvement of 1,031 public quarters, conversion of inadequate units to 256 adequate public quarters, and minor construction projects, and (4) funds for our leasing program and for the completion of our Wherry acquisition and improvement program.

Next, I would like to briefly describe the Army's family housing situation. This committee is well aware of, and shares, the Army's keen interest in the need to provide family housing for our military personnel. In recent years, your timely authorizations have recognized the important role that the availability of suitable family housing plays in retention of the leaders and technicians of our modern Army.

Our worldwide family housing requirement as of June 30, 1962, computed on the basis of 960,000 total strength, was approximately 301,000 units. Including available community support and leases, our total assets are 227,000 units, leaving a gross deficit of 74,000 units. Our programable deficit is 34,000 units, after application of Department of Defense criteria for programing family housing which restricts provision of housing to 90 percent of gross requirements in the United States, Caribbean, and Okinawa, and 80 percent of gross requirements in foreign countries.

The line item justification data for new construction of 1,743 units of family housing, for 383 units of trailer facilities, and for major improvements to 1,031 units of existing family housing, are contained in the book before you. Each proposal has been carefully screened and is presented in a manner which we hope meets with your approval. Mr. Chairman, I have with me Col. James R. Rorabaugh, Chief of the Army's Family Housing Division. We stand ready to provide the committee with whatever information you desire.

The following individual justifications are provided in support of the new construction program.

Fort Greely, Alaska, 62 units

Fort Greely, located approximately 100 miles southeast of Fairbanks, houses the Arctic Test Board, the Cold Weather and Mountain School, a Chemical Corps arctic test activity, and supports the Air Force Readout Station. This post is scheduled for indefinite retention.

Isolation is the primary justification for the 62 family housing units proposed in this program. Current family housing statistics reveal a projected gross need for 581 units for eligible families at this installation. Adequate on-post assets total 260 units (45 percent). Adequate off-post assets total 103 units (18 percent) which includes 79 families residing out of the area. The proposed 62 units (11 percent) will increase on-post assets to 56 percent and total assets to 74 percent. Living in unsuitable housing are 189 families consisting of: 29 families involuntarily separated; 85 families living in off-post substandard housing; 2 families residing beyond a reasonable commuting distance; 47 families paying excessive rentals; and 26 families residing in on-post substandard housing. Community support at this isolated installation is virtually nonexistent. This project for 62 NCO units will provide an important increment to supplement existing on-post assets to alleviate the acute housing shortage. The construction of additional off-post family housing from local sources in the area does not appear feasible at this time.

Tok Junction, Alaska, 19 units

Tok Junction is one of five pump stations in the 626-mile, Army operated, Haines-Fairbanks pipeline system, and is located 200 miles southeast of Fairbanks. The Haines-Fairbanks pipeline is the primary means for supply of petroleum products to meet Army and Air Force requirements in northern Alaska.

This project was previously authorized by Public Law 87-554. The project is designed to meet a military requirement to provide suitable housing for families presently living in substandard trailer units. This isolated installation has a projected gross need for 38 units for eligible families. Adequate on-post assets total 12 units (32 percent). The proposed 19 units will increase adequate assets to 82 percent of requirements.

The existing trailer units are not considered adequate under climatic conditions where winter temperatures range to minus 70° F. Numerous problems have been encountered in the recruitment of experienced pipeline personnel because of the inadequate family housing facilities available. In several instances persons recruited from Conus, after arrival, refused to accept the trailer units as living quarters and returned to Conus at their own expense. Community support at this isolated station is nonexistent.

The project will provide 19 NCO units.

Fort Richardson, Alaska, 100 units

Fort Richardson is the site of Headquarters, U.S. Army, Alaska, and is located approximately 5 miles northeast of Anchorage. The installation is scheduled for indefinite retention.

This project was previously authorized by Public Law 87-554. The project is designed to alleviate the critical housing shortage at this installation, particularly for large families. A review of the family housing statistics for this installation reveals that there is a projected gross need for 3,228 units for eligible families. Adequate on-post assets total 1,707 units (53 percent); 605 families (19 percent) live in adequate off-post housing. The proposed 100 units (3 percent) will increase on-post assets to 56 percent and total assets to 75 percent. Living in unsuitable housing are 916 families consisting of: 63 families involuntarily separated; 433 families living in off-post substandard housing; 405 families paying excessive rentals; and 15 families residing beyond a reasonable commuting distance.

Currently, a requirement exists for 992 units of 4 bedrooms or larger. Available assets to apply against this requirement includes 33 4-bedroom units onpost, and a reported 49 units off-post.

Leasing as a mean to fulfill this requirement is not feasible since the statutory cost limitations of $150 per unit is insufficient to meet local rental rates. The project is composed of 100 company grade units.

Pine Bluff Arsenal, Ark., 33 units

Pine Bluff Arsenal is a chemical manufacturing and storage activity, located 10 miles northwest of Pine Bluff, Ark. The arsenal is scheduled for indefinite retention as a permanent installation of the Army.

This project, previously authorized by Public Law 87-554, is needed to replace a corresponding number of substandard Lanham Act units presently occupied by eligible military families. Current family housing statistics show a projected gross need for 111 units for eligible families. Adequate on-post assets total 45 units (40 percent). Twenty-one families (20 percent) live in adequate off-post housing. The proposed 33 units (30 percent) will increase on-post adequate assets to 70 percent and total assets to 90 percent. Thirty-three of the 35 families living in unsuitable housing are occupying on-post substandard units. The remaining two families are living in private housing beyond a reasonable commuting distance.

The mission of the station requires key trained personnel to live on post to be available in case of emergency or an alert. The 33 units of substandard on-post housing programed for disposal cannot economically be altered or improved to qualify as adequate housing.

Leasing does not appear feasible because most new housing in the area is for sale. Local builders have shown no interest in section 810 housing. The project will provide for 2 colonels, 1 field grade, and 30 NCO units.

23-901-63——36