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at a fair price, not administered for the guaranty of unconscionable profits for private builders.

The ADA recommends that the Administrator of the Housing and Home Finance Agency, Mr. Foley, check very carefully into the practices of the Federal Housing Administration to make absolutely certain that the various offices throughout the country are insuring mortgages on a basis fair to the Federal Government, to the builder, and to the consumer.

We also believe that the FHA is somewhat at a disadvantage because it cannot, even if it would, obtain adequate cost figures. We therefore recommend that a builder, in order to obtain FHA mortgage insurance, must make a sworn statement as to cost. This would enable the FHA to do a better job of appraisals. It would tend to squeeze a lot of water out of selling prices. It could operate to reward the more efficient builder and yet not let the price be set by the marginal or least efficient builder.

The amendments we have suggested probably should be made in S. 712, introduced by Mr. Maybank for himself and seven other Senators, which we understand is also before this committee, rather than to S. 138. It is possible, however, that either or both of our suggestions could be accomplished through changes in administrative procedures.

CATHOLIC WAR VETERANS OF THE UNITED STATES OF AMERICA,

Washington 5, D. C., May 13, 1949. BANKING AND CURRENCY COMMITTEE,

House of Representatives, Washington, D.C. DEAR SIR: Respectfully request that the following statement be incorporated in the hearings presently being conducted by the Banking and Currency Committee. The Catholic War Veterans assembled in convention adopted the following resolution :

"Whereas the supply of housing accommodations in the United States of America is now and for an indefinite period of from 5 to 10 years may continue to remain inadequate; and

"Whereas such housing shortages create hardships particularly upon veterans of World War II for the following reasons, to wit:

"1. Such veterans comprise the largest numerical group to have been displaced by the recent war;

“2. Such veterans are comprised largely of individuals with families;

*3. The majority of such veterans are affected adversely by postwar economic conditions such as (a) inadequate income; (b) unpaid debts accrued prior to or arising out of their war service or rehabilitation; and (c) increased expenses resulting from higher costs of living, separation and displacement of families, establishment of new businesses or marriage, and financing of educational and vocational training program; and

"Whereas the Government veterans' emergency housing program is concerned primarily with the availability and channeling of materials for housing and not with technique of bringing down the cost to veterans of housing; and

"Whereas housing construction and real estate interests have gone on record as admitting they are unable to procure housing or rental accommodations for individuals not able to pay in excess of $60 per month; and

“Whereas the Bureau of Census survey of veterans' housing plans and accommodations indicates that among World War II veterans who desire to own their own homes, 28 percent can pay between $50 and $60 per month, 40 percent can pay between $40 and $50, 14 percent can pay less than $30 per month; and

"Whereas the only feasible way to accomplish the objective of making available to middle- and low-income veterans satisfactory housing accommodations at a cost commensurate with their ability to pay appears to be through the operation of the long-range housing bill, which for the benefit of such veterans proposing to purchase their own homes, provides extension of amortization, reduction of interest rates, and increase in the proportion of the insured loan, and, for the benefit of such veterans desiring rental accommodations, provides continuation of the public housing program: Now, therefore, be it hereby

Resolved, That the Catholic War Veterans of the l'nited States of America, in its 1948 annual convention, go on record as endorsing the long-range housing bill; be it further

Resolved, That copies of this resolution be sent by the national department judge advocate to all United States Senators and Representatives in the United States and to the chairman of the Representatives and Senate; and that this

resolution be given such other distribution to individual Congressmen as the national judge advocate may deem proper and appropriate; and be it further

"Resolved, The Catholic War Veterans of the United States of America urges immediate passage by the House of Representatives, Committee on Banking and Currency, on the said long-range housing bill and prompt enactment of the bill by Congress of the United States of America."

We believe that it is incumbent on the Banking and Currency Committee to favorably urge the passage of this important legislation. For 3 years the people of America have lived on promises. For 3 years this bill has been discussed by any and all persons. Suffice it for me to say, that on this particular legislation all that has been worth saying has already been said.

Respectfully request the Banking and Currency Committee to curtail its hearings immediately, reach a decision on the facts garnered over the past 3 years and present this legislation to the many Congressmen who are ready, will-ing, and able to add their “Yea” to the passage of this bill. Thank you, and believe me to be Sincerely yours,

EUGENE F. TAGGART, National Erecutive Officer,

HOUSE OF REPRESENTATIVES,

Washington, D. C., May 13, 1919. Hon. BRENT SPENCE, Chairman, Committee on Banking and Currency,

House of Representatives, Washington, D. C. DEAR COLLEAGUE: The sponsors of the Republican housing bills (H. R. 1973, et seq.) felt that they did not want to amend the National Banking Act in order to permit banks to deal in local housing authority bonds because they believe that this is strictly a banking matter and should not be slipped through in a 70-odd-page housing bill. We believe that since this matter is very controversial it should receive thorough consideration by the committee in separate legislation. Sincerely,

J. K. Javits, M. C.

HOUSING AND HOME FINANCE AGENCY,

Washington 25, D. C., May 9, 1919. Hon. BRENT SPENCE,

United States House of Representatives, Washington, D. C. DEAR MR. SPENCE: This will acknowledge and thank you for your letter of May 4 in which you request that I forward to your committee my recommendations as to any additional legislation necessary or desirable to permit the District of Columbia to participate in the national programs of Federal aid for slum clearance and for low-rent public housing authorized by H. R. 4009 and S. 1070 on the same basis as provided in the national legislation for other communities throughout the country.

In accordance with your request, there are enclosed herewith copies of an amendment to S. 1070 to accomplish this objective. The same amendment may be used in connection with H. R. 4009. However, it is necessary to this purpose that section 508 of S. 1070 be added to H. R. 4009 so that the public housing agency may operate in accordance with the provisions of the Housing Act of 1919. Said section 508 reads as follows:

"NATIONAL CAPITAL HOUSING AUTHORITY

“Sec. 508. Notwithstanding any other provisions of law, the National Capital Housing Authority is hereby authorized to acquire sites for low-rent public housing projects assisted under the provisions of the United States Housing Act of 1937, as amended."

There are also enclosed herewith copies of an explanatory statement concerning the proposed amendment transmitted herewith.

In accordance with the request contained in your letter, the amendment transmitted herewith has b?en develop..d in consultation with the other interested agencies; namely, the Board of Commissioners of the District of Columbia, the Corporation Counsel for the District of Columbia, the District of Columbia Redevelopment Land Agency, the National Capital Housing Authority, and the National Capital Park and Planning Commission. All of these agencies are in agreement with respect to the proposed amendments transmitted herewith and join me in earnestly requesting favorable consideration of the proposed amendments by your committee.

I am authorized by the Director of the Bureau of the Budget to advise that the inclusion of the enclosed amendments in the proposed Housing Act of 1949 (H, R. 4009 and S. 1070) would be in accord with the program of the President.

I desire to call your attention specifically to the fact that the amendment is drafted as an alternative method whereby the District of Columbia Redevelopment Land Agency may finance its authorized operations and functions under the District of Columbia Redevelopment Act of 1945 by obtaining financial assistance from the Housing and Home Finance Administrator, as authorized by title I of H. R. 4009 and S. 1070. This alternative method is in addition to the method presently provided under section 16 of the District of Columbia Redevelopment Act of 1945, which authorizes an appropriation of not exceeding $20,000,000 to the District of Columbia Redevelopment Land Agency for financing its operations and functions under that act.

In the event that the District of Columbia Redevelopment Land Agency obtains appropriations under that act, any projects financed with such appropriated funds will be subject to all of the present terms, conditions, and requirements of the District of Columbia Redevelopment Act of 1945. However, under the proposed amendments, if the District of Columbia Redevelopment Land Agency obtains funds from the Housing and Home Finance Administrator under title I of H. R. 4009 or S. 1070, certain of the present provisions of the District of Columbia Redevelopment Act of 1945 which are inconsistent with the provisions of the national legislation would be inapplicable.

In accordance with the request which I received from the Honorable John Sparkman, chairman of the Subcommittee on Housing and Rents of the Senate Banking and Currency Committee, I am forwarding to him and to the Honorable Burnet R. Maybank, chairman of the Senate Banking and Currency Committee, copies of this letter and the enclosures.

I desire to take this opportunity, on behalf of the Housing and Home Finance Agency and on behalf of the other agencies which participated in the development of the amendment, to express our sincere appreciation of your interest in this matter. With kindest regards, I remain, Sincerely yours,

RAYMOND M. FOLEY, Administrator.

PROPOSED AMENDMENT

DISTRICT OF COLUMBIA PARTICIPATION

Sec. 509. To make available to the District of Columbia, and to authorize the appropriate agencies operating therein to accept, the benefits provided by titles I and II of this Act, the District of Columbia Redevelopment Act of 1945 is hereby amended by renumbering sections 20, 21, and 22 thereof as sections 21, 22, and 23, respectively, and by adding after section 19 a new section to read as follows:

"SEC. 20. (a) As an alternative method of financing its authorized operations and functions under the provisions of this Act (in addition to that provided in section 16 of this Act), the Agency is hereby authorized and empowered to accept financial assistance from the Housing and Home Finance Administrator (hereafter in this section referred to as the Administrator), in the form of advances of funds, loans, and capital grants pursuant to title I of the Housing Act of 1949, to assist the Agency in acquiring real property for redevelopment of project areas and carrying out any functions authorized under this Act for which advances of funds, loans, or capital grants may be made to a local public agency under title I of the Housing Act of 1949, and the Agency, subject to the approval of the District Commissioners and subject to such terms, covenants, and conditions as may be prescribed by the Administrator pursuant to title I of the Housing Act of 1945, may enter into such contracts and agreements as may be necessary, convenient, or desirable for such purposes.

“(b) Subject to the approval of the District Commissioners, the Agency is authorized to accept from the Administrator advances of funds for surveys and plans in preparation of a project or projects authorized by this Act which may be assisted under title I of the Housing Act of 1949, and the Agency is authorized to transfer to the Planning Commission so much of the funds so advanced as the District Commissioners shall determine to be necessary for the Planning Commission to carry out its functions under this Act with respect to the project or projects to be assisted under title I of the Housing Act of 1949.

"(c) The District Commissioners are authorized to include in their annual estimates of appropriations items for administrative expenses which, in addition to loan or other funds available therefor, are necessary for the Agency in carrying out its functions under this section.

"(d) Notwithstanding the limitation contained in the last sentence of section 110 (d) or in any other provision of title I of the Housing Act of 1949, the Administrator is authorized to allow and credit to the Agency such local grants-in-aid as are approvable pursuant to said section 110 (d) with respect to any project or projects undertaken by the Agency under a contract or contracts entered into under this section and assisted under title I of the Housing Act of 1949. In the event such local grants-in-aid as are so allowed by the Administrator are not sufficient to meet the requirements for local grants-in-aid pursuant to title I of the Housing Act of 1949, the District Commissioners are hereby authorized to enter into agreements with the Agency, upon which agreements the Administrator may rely, to make cash payments of such deficiencies from funds of the District of Columbia. The District Commissioners shall include items for such cash payments in their annual estimates of appropriations, and there are hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the amounts necessary to provide for such cash payments. Any amounts due the Administrator pursuant to any such agreements shall be paid promptly from funds appropriated for such purpose.

“(e) All receipts of the Agency in connection with any project or projects financed in accordance with this section with assistance under title I of the Housing Act of 1949, whether in the form of advances of funds, loans, or capital grants made by the Administrator to the Agency, or in the form of proceeds, rentals, or revenues derived by the Agency from any such project or projects, shall be deposited in the Treasury of the United States to the credit of a special fund or funds, and all moneys in such special fund or funds are hereby made available for carrying out the purposes of this Act with respect to such project or projects, including the payment of any advances of funds or loans, together with interest thereon, made by the Administrator or by private sources to the Agency. Expenditures from such fund shall be audited, disbursed, and accounted for as are other funds of the District of Columbia.

" (f) With respect to any project or projects undertaken by the Agency which are financed in accordance with this section with assistance under title I of the Housing Act of 1949—

“(1) sections 3 (f), 3 (k), and 7 (g), and the last sentence of section 6 (b) (2) of this Act shall not be applicable to those pieces of real property which, in accordance with the approved project area redevelopment plan, are to be devoted to public housing to be undertaken under Public Law 307, Seventy-third Congress, approved June 12, 1934, as am

aded : “(2) the site and use plan for the redevelopment of the area, included in the redevelopment plan of the project area pursuant to section 6 (b) (2) of this Act, shall include the approximate extent and location of any land within the area which is proposed to be used for public housing to be undertaken under Public Law 307, Seventy-third Congress, approved June 12, 1934, as amended ;

“(3) notwithstanding any other provisions of this Act, the Agency, pursuant to section 7 (a) of this Act, shall have power to transfer to and shall at a practicable time or times transfer by deeds to the National Capital Housing Authority those pieces of real property which, in accordance with the approved project area redevelopment plan, are to be devoted to public housing to be undertaken under Public Law 307, Seventy-third Congress, approved June 12, 1934, as amended, and, in accordance with the requirements of section 107 of the Housing Act of 1949, the National Capital Housing Authority shall pay for the same out of any of its funds available

for such acquisition. “(g) It is the purpose and intent of this section to authorize the District Commissioners and the appropriate agencies operating within the District of Columbia to do any and all things necessary to secure financial aid under title I of the Housing Act of 1949. The District of Columbia Redevelopment Land Agency is hereby declared to be a local public agency for all of the purposes of title I of the Housing Act of 1949. As such a local public agency for all of the purposes of title I of the Housing Act of 1949, the Agency is also authorized to 693

borrow money from the Administrator or from private sources as contemplated by title I of the Housing Act of 1949, to issue its obligations evidencing such loans, and to pledge as security for the payment of such loans, and the interest thereon, the property, income, revenues, and other assets acquired in connection with the project or projects financed in accordance with this section with assistance under title I of the Housing Act of 1949, but such obligations or such pledge shall not constitute a debt or obligation of either the United States or of the District of Columbia.

“(h) Nothing contained in this section or in any other section of this Act shall relieve the Administrator of his responsibilities and duties under section 105 (c) or any other section of the Housing Act of 1949.”

EXPLANATORY STATEMENT OF PROPOSED AMENDMENT TO S. 1070 OR H. R. 4009 TO

PROVIDE FOR THE PARTICIPATION OF THE DISTRICT OF COLUMBIA IN THE PROGRAMS AUTHORIZED UNDER TITLES I AND II OF SAID BILLS

The proposed amendment would renumber sections 509 and 510 of S. 1070 as sections 510 and 511, respectively, and add one new section to make available to the District of Columbia and to authorize the appropriate agencies operating therein to the benefits provided under titles I and II of the bill. To accomplish this objective, the proposed amendment would amend the District of Columbia Redevelopment Act of 1915 so as to authorize the participation of the District of Columbia Redevelopment Land Agency, the National Capital Housing Authority and other appropriate agencies operating in the District of Columbia to receive the benefits of titles I and II of S. 1070 and H. R. 4009 on the same basis and to the same extent that the States, Territories, and other municipalities would be authorized to participate.

Under the proposed amendment the District of Columbia Redevelopment Act of 1915 is continued in full force and effect. However, the new section 509 would provide an alternative method of financing slum-clearance and redevelopment operations of the District of Columbia Redevelopment Land Agency by vesting in that Agency (subject to the approval of the Commissioners of the District of Columbia) the power to accept financial assistance which would be authorized under title I of S. 1070 and H. R. 4009.

The proposed amendment would authorize the Administrator of the Housing and Home Finance Agency to allow credit for local grants-in-aid in connection with projects undertaken within the District of Columbia, under title I of S. 1070 and H. R. 4009, to the same extent as local grants-in-aid are approvable for other cities and States. It would provide that in the event such local grantsin-aid are not sufficient to meet the local grants-in-aid requirements, the District Commissioners would be authorized to enter into agreements with the District of Columbia Redevelopment Land Agency to make cash payments of such deficiencies from the funds of the District of Columbia and to authorize appropriations to the District Commissioners for such purpose where necessary.

The proposed amendment would, with respect to any project undertaken with financial assistance under titles I and II of S. 1070 or H. R. 4009, make sections 3 (f), 3 (k), and 7 (g) and the last sentence of section 6 (b) (2) of the District of Columbia Rederelopment Act of 1945 inapplicable to any real property which, in accordance with the redevelopment plan adopted by the Planning Commission and approved by the District Commissioners, is to be devoted to public housing undertaken under Public Law 307, Seventy-third Congress, approved June 12, 1934 (the District of Columbia Alley Dwelling Act, as amended).

The National Capital Housing Authority would be entitled to acquire by deed those pieces of real property within a redevelopment project area which, in accordance with the approved project area redevelopment plan, are to be devoted to public housing to be undertaken under Public Law 307, Seventy-third Congress, approved June 12, 1934, as amended, and in accordance with the requirements of section 107 of S. 1070 and H. R. 4009 the said National Capital Housing Authority will be obligated to pay for such real estate out of funds made available for such acquisition.

This proposed amendment to S. 1070 may be used in connection with H. R. 4009, provided there are also added to H, R. 4009 the provisions of section 508 of S. 1070 which read as follows:

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