With respect to this large deficit, I think it is significant to note that we have made little if any headway in the past few years toward any sizable reductions in the number of families inadequately housed. For example, at the beginning of fiscal year 1963 the Navy still had approximately 28,000 units of substandard housing to be disposed of by July 1, 1965, in accordance with existing legislation. By the end of the fiscal year we had disposed of about 5,000 of these units, but were able to add only 3,489 adequate units (2,194 new construction and 1,295 by conversion) to our inventory during the same period. Also related to this problem is the fact that we are rapidly approaching that point in time where many of our older adequate public quarters will have to be replaced because the cost to operate and maintain them is becoming uneconomic.

It is evident, therefore, that the number of new units which have been funded is not keeping pace with the number of old and substandard housing units we have had to dispose of, and that even a greatly expanded annual military construction program will not provide the replacements we need by the legislative deadline. For this reason, the Department of the Navy strongly supports the proposed Department of Defense legislation to retain 22,000 substandard units beyond the July 1, 1965, disposal date established by the Congress.

This year's Navy family housing program has been fully coordinated with the Department of Defense and is in consonance with the Secretary of Defense's long-range family housing program, which the Department of the Navy fully supports. As in the past, our basic policy is to rely on civilian community housing to the maximum practicable extent, and to construct and operate housing at only those locations where essential requirements cannot be met from private resources. In general, and in keeping with this policy, this year's program is designed to bring those areas which have the greatest deficiency, more into line with the Navy-wide average of adequately housed personnel.

The Navy is requesting authorization in the fiscal year 1964 military family housing construction program to construct 3,694 units of family housing at 22 locations, including 266 units at 4 oversea locations and 300 units at a classified site at a cost of $65,819,000. In addition, we are requesting authorization to improve 3,604 units of existing public quarters in the amount of $2,057,000 and to provide 172 trailer parking spaces at 3 locations at a cost of $279,000.

The Navy's fiscal year 1964 family housing program also includes additional new construction family housing units authorized under Public Law 87-554. These units are included in the funding program, and consist of 903 units at 7 locations at a cost of $15,381,000. This, combined with the new authorizations, brings the Navy's fiscal year 1964 total for new family housing construction to 4,597 units at 27 locations in the amount of $81,200,000.

Naval Station, Kodiak, Alaska, 250 units (30 officers, 200 enlisted, 20 civilian JO type)

The station provides logistic support for the commander, Alaskan Sea Frontier, Commandant 17th Naval District, Fleet Weather Center, Naval Communication Station, U.S. Coast Guard Station, and operating units of the Pacific Fleet. It is located 7 miles southwest of the city of Kodiak. Kodiak is a completely isolated island, dependent upon sea and air transpotration for all logistic support. The only civilian community in the area is the city of Kodiak, with a population of approximately 3,000. Commercial fishing is the principal industry of the island. There is only one paved road, which leads from the naval station to the city. Terrain is mountainous, with many lakes, streams, and marshland or tundra. There is no public transportation, and almost all roads are in poor condition.

Community support on this isolated island is practically nonexistent. The demand greatly exceeds the supply of housing, with the result that, although most of the dwellings in the community are substandard, the cost of shelter rent and utilities is prohibitive, and beyond the means of our military personnel. To add to this critical condition, the Navy will soon have to eliminate 162 units of substandard on-station housing which cannot be economically converted to adequacy. There are no private units available which can be leased, and the high cost of construction and utilities preclude construction of section 810housing. The house shown in the lower left hand corner of page 1c of the justification book is typical of the "better" class of community support. It is located in a project operated by the Alaska Housing Authority, known as Aleutian Homes. Most of the personnel who cannot be accommodated on station live in this 250 unit project, where rents are excessive; lack of drainage results in standing water in some areas; floors and subflooring are badly warped, and

differential settling of the mud foundations has caused structural defects in many units.

There is a projected requirement to house 660 families of eligible personnel. Currently available and authorized adequate assets on-station total 149 units or 23 percent of the total requirement. Off-station adequate assets total 43, or 7 percent of the total requirement. This project for 250 units will increase military assets to 399 units, or 61 percent of the requirement, and total adequate assets to 442 units, or 67 percent of the requirement for eligible personnel. The current deficit of adequate housing at Kodiak is 484 units. As a result, 43 families are separated; 255 live in on-station substandard units; 72 pay excessive amounts for off-station housing, and 114 live in substandard housing off-station. The isolated character of the area and high construction and utility costs prevent private construction of adequate housing to rent within the means of military personnel.

Marine Corps Air Station, Yuma, Ariz., 100 units (20 officers, 80 enlisted)

The Marine Corps Air Station provides training in gunnery and bombing techniques and logistic support to fleet aviation squadrons. Tenant activities operate, maintain, and train personnel in operation of ground facilities for detection and control of air traffic. The air station is located 7 miles southeast of the city of Yuma. Total population of the area is 40,000. Terrain is desert, and the local economy is predominantly agricultural. The climate is dry and subtropical. Most of the off-station housing available to military personnel falls into two categories-old, substandard frame units, and newer tract-type homes which are overpriced for military personnel. Examples of both of these are shown on the left-hand side of page 2c. The picture of the substandard units looks much better than the project really is. The units were built during World War II for defense housing and not only are undersized but also quite rundown.

The local economy is based on agriculture and is relatively static. Therefore, opportunities for resale of purchased homes are poor. When military personnel attempt to sell at the end of their tour of duty they must do so quickly. This combination of circumstances often means selling at a financial sacrifice. Rental housing is either overpriced or substandard and the choice in either category is limited.

There is a projected requirement to house 600 families of eligible personnel. On-station adequate assets total 60 units, or 10 percent of the total requirement. Off-station adequate assets total 207, or 34.5 percent of the requirement. This project for 100 units will increase on-station adequate assets to 160 units, or 27 percent of the requirement, and total adequate assets to 367 units, or 61 percent of the requirement for eligible personnel.

The current deficit of adequate housing at Yuma is 328 units. As a result, 189 families in the area pay excessive amounts for housing, 119 live in substandard units in the community, and families of 20 eligible personnel are separated.

Marine Corps Cold Weather Training Center, Bridgeport, Calif. (7 Officers, 33 enlisted)

The Cold Weather Training Center conducts indoctrination of Marine Corps units and individual marines in survival and operations under heavy snow and extreme cold weather conditions. The training includes escape, evasion, survival, and military mountaineering and skiing. It is located in the Toiyabe National Forest, 120 miles south of Reno, on U.S. Highway 395. Population of Bridgeport, 20 miles away, is 700. Terrain is mountainous and heavily forested. The local economy consists of cattle and resort trade. Roads are narrow and winding and require snow clearance during winter months.

The Training Center is completely isolated. Since there is insufficient housing on-station, the majority of personnel assigned are separated from their families during the 2-year tour at Bridgeport. The lack of private demand for housing in this remote area, in addition to high development and construction costs, precludes the possibility of community support becoming available to military personnel. There are 20 Government-owned trailers which will be eliminated upon completion of this project.

There is a requirement to house 66 families of eligible personnel. There is only one adequate unit on-station, meeting 2 percent of the requirement. Adequate off-station housing totals only three units, or 5 percent of the requirements. This project for 40 units will increase on-station adequate assets to 41 units,

or 62 percent of the requirement, and total assets to 44, or 67 percent of the requirement for eligible personnel. The current deficit of adequate housing at Bridgeport is 64 units. As a result, 48 families are separated, 9 families of eligible personnel occupy onstation substandard trailer units, 4 pay excessive amounts for private housing in the area, and 3 families live in substandard private housing. Naval Air Facility, El Centro, Calif. (30 officers, 70 enlisted)

The Naval Air Facility serves as an auxiliary field for fleet aviation units and supports the joint DOD parachute test facility which tests and evaluates parachutes, as well as other components of aircraft escape systems. The station is manned by Navy and Air Force personnel. It is located 8 miles west of the city of El Centro. Population of the surrounding area, including El Centro, Imperial (13 miles), Brawley (22 miles), Calexico (20 miles), and Seeley (2 miles) is approximately 42,000. Terrain is irrigated desert. Economy is almost exclusively agricultural, with the dependent light industries of canning and processing produce.

Less than 20 percent of eligible families are able to procure adequate housing in the community. Rental units available are either converted apartments in old houses, generally substandard or new efficiency-type apartments, which are excessive in cost. When we went out to check the housing situation at El Centro, we couldn't find one adequate rental available in the town.

Families of 297 eligible personnel will require housing in the area. Currently available and authorized military assets total 65 units, which represents 23 percent of requirements and includes a Wherry project located on the station which is being acquired. Adequate off-station assets total 53 units, or 18 percent. This project for 100 units will increase military assets to 165 or 56 percent, and total assets to 218, or 73 percent of the requirement.

The current deficit of adequate housing at El Centro is 151 units. As a result, 106 eligible families live in on-station substandard units, 14 families are separated, 10 families pay excess amounts for housing in the area, 1 family lives. at an excessive commuting distance from the facility, and 20 live in substandard private units in the community.

Naval Station, Long Beach, Calif. (100 officers, 400 enlisted)

The Long Beach naval complex provides logistic support for 109 ships and 25 shore-based commands, including representatives of many types of Navy fleet units. Major shore commands, in addition to the naval station, include the naval shipyard, the fuel depot at San Pedro, and the Naval Weapons Station,. Seal Beach. The naval station is located 2 miles west of downtown Long Beach, which has a population of 354,000. The local economy consists of aircraft industries, oil refineries, canneries, steamship companies, private shipyards, and light manufacturing companies. The terrain is coastal plain, and roads generally are excellent. Access to the naval station, however, is limited to a narrow pontoon bridge from the east and two drawbridges from the north.

Increasing immigration of civlians going to work in new and expanding industries in the area has created a demand for housing in excess of supply, resulting in high cost for even marginally acceptable units. New rental units being constructed are for the most part luxury-type apartments, not catering to young children, and well beyond the financial means of most military personnel. In addition, the World's Fair scheduled for Long Beach in April 1967 will place further demands on an already tight housing situation. In addition to the shortage of private housing the station is faced with disposal of some 1,050 substandard on-station units. This project is the second increment for replacement of these units.

Families of 10,219 eligible personnel require housing in the area. Currently available and authorized military assets total 281, or 2.3 percent of requirement. Adequate off-station units total 4,757, or 47 percent. This project for 500 units will increase military assets to 781 or 7.6 percent, and total assets to 5,538 units, or 54 percent of eligible requirements.

The current deficit of adequate housing at Long Beach is 5,549 units. As a result, 1,413 eligible families live in on-station substandard units; 568 families are separated; 187 personnel live at an excessive commuting distance from the station; 2,572 pay excessive amounts of rent; and 809 live in substandard private units in the community.

Naval shipyard, San Francisco, Calif. (24 officers, 100 enlisted men)

The Naval Shipyard is responsible for fleet modernization and repair. It also overhauls Pacific Fleet surface craft. The Naval Station, Treasure Island, is the major receiving station for processing personnel in northern California. The commandant, 12th Naval District, is responsible for military command of all naval shore activities in the district. The area is home port for 37 ships of the Pacific Fleet, not including those undergoing overhaul and repair. The west bay area comprises the city and county of San Francisco. Population is approximately 2,500,000. The economy is financial, industrial, maritime, electronic research, and manufacturing. Terrain is hilly, and roads are excellent. The San Francisco Chamber of Commerce advised that a recent survey shows only about a 2-percent vacancy rate in rental housing for San Francisco County. Continued influx of population into the bay area indicates that new construction of family living units will not be able to keep pace with the increasing demand. Further, land is extremely limited within the commuting area. High land values, combined with continuing rising costs of construction, rule out the possibility of an increasing supply of housing sufficient to permit military personnel to adequately house their families within their BAQ.

Families of 3,936 eligible personnel require housing in the area. Existing military assets total 208, or 5 percent of the requirement. Adequate off-station assets total 1,053, or 26 percent of the requirement. This project for 124 units will increase adequate military assets to 332, or 8 percent, and total assets to 1,385 units, or 35 percent of eligible requirements.

The current deficit of adequate housing for the west bay complex is 2,675 units. As a result, 494 families are separated; 274 occupy on-station substandard units; 531 eligible personnel commute excessive distances to work; 595 families pay in excess of their BAQ; and 781 live in substandard private units in the community.

Marine Corps Air Station, Kaneohe Bay, Oahu, Hawaii (6 officers, 44 enlisted men)

The Marine Corps Air Station, Kaneohe Bay, provides support for ground and air units of the Marine Corps and Navy. It also supports the Headquarters, Pacific Missile Range, Hawaiian area. The station is located 3 miles north of Kailua, and 7 miles northeast of Kaneohe, on the island of Oahu. Population

of the commuting area is 60,238. This is primarily a residential area, with small businesses and truck farming. Terrain is a narrow coastal plain ringed by mountains.

Housing facilities in the area have been oversaturated by a population boom of approximately 300 percent in the last 10 years. The only new construction coming on the market for rent, continues to be compact 1- and 2-bedroom units, located in high-density areas without adequate family facilities. An intensive survey of available housing in the area was conducted in February of this year. After newspaper ads, front-page stories, and spot announcements on radio and television were made for 2 days, landlords reported only 63 units vacant. The average monthly cost to occupants of these units would be $176.59; 215 eligible families now reside in on-station substandard units planned for retention for lower pay grade enlisted personnel. This project is urgently needed since adequate housing is not available in the community for these eligible personnel. Families of 2,685 eligible personnel will require housing in the area. Existing and authorized military assets total 901, or 34 percent of the requirement. Adequate off-station assets total 679, or 25 percent. This request, for authorization of 50 units added to the 50 units authorized by Public Law 87-554, will increase military assets to 1,001, or 39 percent, and total assets to 1,680 units, or 63 percent, of the eligible requirements.

As a

The current deficit of adequate housing at Kaneohe Bay is 1,116 units. result, 50 eligible families are separated; 215 occupy substandard housing on station; 28 personnel commute excessive distances; 448 families pay in excess of BAQ and cost of living allowance for private housing; and 375 occupy substandard private units in the area.

Naval Station, Pearl Harbor, Oahu, Hawaii (80 officers, 320 enlisted men)

The Pearl Harbor complex provides support for the Headquarters of Commander in Chief, Pacific; Commander in Chief, Pacific Fleet; Commander, Destroyer Flotilla Five; Commander, Submarine Force, Pacific; Commander, Service Force, Pacific; Commander, Fleet Marine Force, Pacific; 76 individual fleet units, and 50 other shore-based activities. The naval base is 8 miles northwest

of Honolulu. Population of the area is 350,000. Terrain is a coastal plain extending into the foothills of the Koolau Range. Support for military activities is a major factor in the economy. Agriculture, principally sugarcane and pineapple, and the tourist trade are also important.

The vast majority, 78 percent, of eligible personnel inadequately housed in this area, occupy on-station substandard units. This project is planned to replace 400 of these units, since adequate housing is not available in the community. High cost of land and construction, combined with pressing needs of the civilian population for better housing, has thus far precluded the possibility of private builders constructing units which military families can afford. The Honolulu Board of Realtors conducted an islandwide housing vacancy survey on the 4th and 5th of February this year, uncovering a total of 786 vacancies. This is approximately 1 percent of the total rental units on Oahu, which is positive proof of an extremely tight housing market. An increase in eligible families through the buildup of the FBM Weapon System support and the homeporting of POLARIS submarines at Pearl Harbor will further aggravate this shortage. Families of 7,447 eligible personnel will require housing in the area. Existing military assets total 3,327, or 45 percent of the requirement. Off-station assets are 985, or 13 percent. This project for 400 units will increase military assets to 3,727, or 50 percent, and total assets to 4,712 units, or 63 percent, of the eligible requirement.

The current deficit of adequate housing at Pearl Harbor is 2,011 units. As a result, 116 families are separated; 1,577 eligible families occupy substandard housing on station; 15 personnel commute excess distances; 127 families pay in excess of BAQ and cost of living allowance; and 176 occupy substandard private units in the community.

Naval Radio Station, Cutler, Maine (2 officers, 10 enlisted)

The naval radio station operates and maintains facilities and equipment to provide vital communications for command and administration of Atlantic Fleet submarines. It is located 11 miles east of the small town of Machias. Population of the surrounding area totals approximately 8,000. Terrain is typical of the Maine seaboard: wooded hills, falling to rocky beaches, several inland lakes, and some crop and pasture land. Economy of the area is based on agriculture, lumber, fishing, and vacationing. It is an isolated area, and adequate roads are few. These become hazardous and often impassable in winter.

This project is needed due to increased base loading. Housing in the community is scarce, and the new units which are available are generally converted apartments in old, dilapidated houses which are unsuitable for year-round occupancy.

The house shown at the bottom left-hand side of page 9c is excess in cost because of the high cost of heat. Last winter, the family occupying this house sealed off all rooms above the first floor and the cost of utilities alone average $76 a month. Further a number of storm windows are missing and the house is in poor structural condition.

Families of 67 eligible personnel will require housing in the area. Existing military assets total 33, or 50 percent of the requirement. Six families are adequately housed in the community, and four have chosen not to come to the area. This project for 12 units will increase adequate military assets to 45, or 68 percent, and total assets to 55 units, or 82 percent of the projected requirement. The current deficit at Cutler is 14 units. As a result, 1 family lives in an onstation substandard unit; 3 pay excessive amounts for private housing; and 10 families occupy substandard units in the community.

Navy Supply Depot, Mechanicsburg, Pa. (30 officers)

The naval supply depot manages Navy-owned stocks of Defense Supply Agency controlled material; monitors, coordinates, and reviews Navy supply system and DSA support of Navy requirements. It is 8 miles southwest of Harrisburg. Population of the area is 151,000. The economy is based principally on agriculture and light manufacturing, including metal products, textiles, rubber, and leather goods. Terrain is rolling farmland.

The substandard house shown on the left-hand side of page 10c is in a project called Olmstead Estates located in Middletown, about 25 miles east of NSD, and across the Susquehanna River. Most of these homes are two-bedroom units with an unfinished attic and are for sale at about $9,200. Units that have the

attic converted to a third bedroom sell for about $10,500. The picture in the book really flatters this project since the houses are more like cracker boxes.