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8/13/75 - American Bar Association, Montreal
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The original documents are located in Box 1, folder "8/13/75 - American Bar Association,
Montreal" of the Carla A. Hills Speeches at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 1 of the Carla A. Hills Speeches at the Gerald R. Ford Presidential Library
FINAL
AMERICAN BAR ASSOCIATION
MONTREAL, CANADA
AUGUST 13, 1975
MY INVITATION TO ADDRESS YOU TODAY OFFERED ME THE CHANCE
TO SELECT MY OWN TOPIC,
So I DECIDED TO TAKE YOU ON A FLIGHT OF FANTASY INTO
THE THIRD CENTURY TO A PLACE THAT'S LIGHT YEARS FROM THE
MOON. IT'S CALLED "HOME".
NOT "HOME" AS IN "HOMELAND". I MEAN HOME WHERE YOU
TAKE YOUR SHOES OFF; WHERE YOU LET YOUR HAIR DOWN AND CRY
A BIT WHEN YOU PAY THE REPAIR BILLS,
THE FLIGHT MAY NOT BE AS THRILLING AS THE LINK UP OF
APOLLO AND Soyuz OR AS A VERBAL SHOOT OUT OF SALT --- BUT
IT'S BOUND TO GET YOU WHERE YOU LIVE -- NO PUN INTENDED.
LAST WEEK THE WASHINGTON POST TOOK A DOOMSDAY LOOK
AT THE PRICE OF AN AVERAGE HOUSE AND THUNDERED
"TWENTY-FIVE YEARS AGO TWO OUT OF THREE FAMILIES
COULD AFFORD TO BUY A MEDIAN PRICED NEW HOME.
TODAY FEWER THAN ONE OUT OF FIVE CAN. WHAT IS
GOING ON?"
GERALO R. FORD LIBRARY
- 2 -
IN APRIL, SENATOR HUBERT HUMPHREY, CHAIRMAN OF THE
JOINT ECONOMIC COMMITTEE, DELIVERED A CONCLUSION WHICH
MR. AVERAGE HOMEOWNER HAD CONCLUDED SOME TIME AGO: THAT
INITIAL COSTS, INTERESTS RATES, AND ESCALATING UTILITY
BILLS WERE DRIVING MIDDLE-INCOME AMERICA OUT OF THE HOUSE
AND OUT OF THE HOUSING MARKET.
OBVIOUSLY, I DID NOT TRAVEL ALL THE WAY TO MONTREAL
TO DO BATTLE WITH THE WASHINGTON POST OR THE DISTINGUISHED
SENATOR FROM MINNESOTA. BUT, IF THEY ARE RIGHT, THIS
NATION WILL CELEBRATE ITS ENTRY INTO THE THIRD CENTURY WITH
THE ENDING OF AMERICA'S MOST CHERISHED DREAM: HOMEOWNERSHIP.
THAT WAS THE DREAM THAT DROVE THE CONESTOGA WAGONS
ACROSS THE DUSTY PLAINS AND THE DREAM THAT DRIVES TODAY'S
YOUNG COUPLES FROM APARTMENTS TO HOMES,
IF THE DREAM OF HOMEOWNERSHIP IS REALLY DYING, THEN ALL
THE SOUND AND FURY THAT WENT INTO THE MAKING OF AMERICA THE
BEAUTIFUL, AMERICA THE FREE, AND AMERICA THE STRONG WAS A
BIG WASTE OF ENERGY AND TIME,
R.
FORD
GERALD
LISBARY
-3-
AND THAT BRINGS ME TO THE POINT OF MY REMARKS TODAY.
How SERIOUS IS THE THREAT TO THIS DREAM? WHAT ARE WE AS
A GOVERNMENT DOING ABOUT THE THREAT? AND, WHAT MORE CAN
WE DO?
I SUGGEST THAT WE APPROACH THESE PROBLEMS IN A LAWYER-
LIKE FASHION, BOTH AS LAWYERS WHO REPRESENT PEOPLE WHO LIVE
IN HOUSES, AND AS PEOPLE WHO ARE IN SOME WAY INVOLVED IN
BUILDING, SERVICING, OR FINANCING THOSE HOUSES, THAT INCLUDES
JUST ABOUT THE ENTIRE POPULATION OF THE UNITED STATES,
BUT MIND YOU I DID NOT COME HERE TO SPEAK TO YOU AS
A LAWYER, As YOU MAY HAVE HEARD, ONE OF MY CRITICS DURING
MY SENATE CONFIRMATION HEARINGS, INFERRED RATHER UNFLATERINGLY,
THAT I COULD NOT KNOW ANYTHING ABOUT HOUSING SINCE I HAD BEEN
A LAWYER ALL OF MY ADULT LIFE.
FELLOW HOUSING EXPERTS:
Is THE PROBLEM AS CRITICAL AS DEPICTED BY THE WASHINGTON
POST AND SENATOR HUMPHREY?
GERALD R. FORD
- 4 -
WELL, AS ANYBODY IN THE BUSINESS CAN TELL YOU, HOUSING
HAS A SEVERE CASE OF CONTAGIOUS INFLATION, FROM THE FIRST
QUARTER OF 1971 TO THE FOURTH QUARTER OF 1974
LAND COSTS WENT UP 62 PERCENT;
CONSTRUCTION FINANCING 148 PERCENT;
LABOR COSTS 39 PERCENT;
MATERIALS 36 PERCENT;
OVERHEAD 54 PERCENT; AND
MARKETING COSTS 73 PERCENT,
PUT ALL OF THESE FIGURES IN THE HOPPER, SIFT IN THE
LEVELER OF COMPETITION, AND PRICES OF NEW HOMES HAVE RISEN
33 PERCENT IN THESE THREE YEARS,
IF YOU OWNED A HOME OF ANY KIND -- OLD OR NEW -- YOUR
1974 RUNNING COSTS WOULD HAVE JUMPED MORE THAN 50 PERCENT
SINCE 1965 IN EVERY CATEGORY,
GERALD R. FORD
- 5 ..
MAINTENANCE REPAIR UP 105 PERCENT;
MORTGAGE INTEREST 56 PERCENT;
FUEL AND UTILITIES 70 PERCENT) AND
PROPERTY TAXES 70 PERCENT.
MEANWHILE REAL DISPOSABLE INCOMES HAVE INCREASED FAR
MORE SLOWLY.
:
As YOU MAY KNOW, THE MEDIAN FAMILY INCOME TODAY IS
$13,000 WHICH BY RULE OF THUMB TELLS YOU THAT THE MEDIAN
AFFORDABLE HOUSE SHOULD COST NO MORE THAN $32,500. IN
TRUTH THE MEDIAN NEW HOME TODAY ACTUALLY COSTS $39,000,
AND THE MEDIAN EXISTING HOME IS PRICED AT OVER $35,000.
LOOKING BACK A DECADE, IN 1955, PRIOR TO THE CURRENT
INFLATIONARY SPIRAL, 44 PERCENT CF AMERICAN FAMILIES HAD
SUFFICIENT INCOME TO PURCHASE A NEW HOME AS COMPARED WITH
31 PERCENT TODAY, AND 45 PERCENT COULD BUY All EXISTING
HOME AS COMPARED WITH 32 PERCENT TODAY.
GERALD R. FORD
-6-
ONE OF THE NIGHTMARES THAT HAS INVADED AMERICA'S DREAM
OF HOMEOWNERSHIP IS THE HEAD-ON COLLISION OF HOUSING
DEVELOPMENT WITH THE ENVIRONMENT.
THE RESULT HAS BEEN HIGHER COSTS THROUGH INCREASINGLY
COMPLEX AND RESTRICTIVE LOCAL BUILDING CODES AND ENVIRONMENTAL
IMPACT REQUIREMENTS. IN MANY COMMUNITIES HOUSING CONSTRUCTION
IS STRAPPED BY NO-GROWTH POLICIES, SEWER MORATORIA, AND
RESTRICTIVE ZONING,
I DO NOT ARGUE THE NEED FOR SUCH REQUIREMENTS --- FAR
FROM IT. ALL OF US HAVE VIEWED WITH SOME HORROR EXAMPLES
OF SHODDY HOUSING DEVELOPMENTS -- TURNED SLUMS; AND, OF
LAND USE ABUSE THAT BORDERS ON THE CRIMINAL.
I MENTION THIS ONLY TO POINT OUT THAT OUR AWAKENED
ENVIRONMENTAL INTERESTS HAVE NOT ONLY STOPPED SOME HOUSING
GROWTH BUT HAVE CONTRIBUTED TO THE INCREASED COSTS OF THAT
WHICH CONTINUES.
R.
FORD
GERALD
LIBRARY
-7-
You DO NOT NEED MY STATISTICS TO KNOW THAT THE SITUATION
ISN'T HEALTHY. JUST CHECK WITH ANYONE IN THE HOMEBUILDING
INDUSTRY.
HOUSING PRODUCTION IS CURRENTLY LESS THAN HALF THE PEAK
RATE OF 1973, AND SINGLE-FAMILY HOUSING STARTS, ALTHOUGH
RECENTLY IMPROVED, ARE STILL RUNNING ABOUT 14 PERCENT BEHIND
LAST YEAR,
ALL THIS SOUNDS BAD!! BUT AS LAWYERS, WE KNOW THAT ALL
STATISTICS HAVE TWO SIDES, So, BEFORE WE COLLAPSE UNDER THE
WEIGHT OF THOSE FIGURES CITED, HERE ARE A FEW POSITIVE FACTS
THAT THE KNELL RINGERS ALWAYS NEGLECT TO MENTION.
THE FACT IS THAT 63 PERCENT OF ALL AMERICANS ALREADY
OWN THEIR OWN HOMES, AND OVER 30 PERCENT, NOT THE OFTEN
QUOTED 15 PERCENT, OF AMERICANS CAN STILL AFFORD THE MEDIAN
PRICED NEW SINGLE-FAMILY HOME. MOROEVER, NEW HOUSING
PRODUCTION HAS NEVER MADE AVAILABLE MORE THAN 2 PERCENT
OF TOTAL HOUSING UNITS IN ANY SINGLE YEAR,
R.
FORD
GERALD
THE
-8-
As I HAVE ALREADY NOTED, THE MEDIAN AFFORDABLE SINGLE-
FAMILY DETACHED HOME TODAY COSTS $39,000. BUT, HALF OF THE
NEW HOMES SOLD BY DEFINITION COSTS LESS THAN THE MEDIAN PRICE.
IN 1974, FOR EXAMPLE, ABOUT 20 PERCENT OF THE HOMES SOLD
COST LESS THAN $27,500, AND COULD BE AFFORDED BY 48 PERCENT
OF AMERICAN FAMILIES.
MORE THAN THAT, THE MEDIAN PRICED SINGLE-FAMILY DETACHED
HOUSE IS ONLY ONE KIND OF HOUSING ON THE AMERICAN MARKET --
SUITED NEITHER BY LIFE STYLE NOR PRACTICABILITY TO MANY
AMERICAN FAMILIES. OTHER MODES OF HOMEOWNERSHIP, INCLUDING
TOWNHOUSES, CLUSTER HOUSING, AND CONDOMINIUMS HAVE SIGNIFICANTLY
BROADENED AFFORDABLE HOUSING CHOICES FOR MANY AMERICANS,
IN ADDITION, DEMOGRAPHIC CHANGES AS WELL AS TIGHTER
POCKETBOOKS ARE CHANGING THE TYPES OF HOUSE BUYERS ARE
DEMANDING.
GERALD R. FORD LIBRANA
- 9 -
THERE HAS BEEN A DRASTIC INCREASE IN SMALL, ADULT-
ORIENTED HOUSEHOLDS, SINGLES, YOUNG MARRIED, CHILDLESS
COUPLES AND THE ELDERLY ACCOUNTED FOR 82 PERCENT OF THE
NET POPULATION GAIN BETWEEN 1970 AND 1973, SMALLER
HOUSEHOLDS SEEK SMALLER HOUSING UNITS MORE OFTEN IN CLOSER
PROXIMITY TO THE EMPLOYMENT AND CULTURAL OPPORTUNITIES.
THE PROPORTION OF WORKING WOMEN HAS INCREASED FROM
38 PERCENT IN 1960, TO 45 PERCENT IN 1973. As HOUSEHOLDS
INCREASE WHERE BOTH HUSBAND AND WIFE WORK SO DOES DEMAND
FOR HOUSING CLOSER TO PLACES OF EMPLOYMENT,
AT THE SAME TIME POPULATION GROWTH HAS DECREASED, IN
THE 1950's POPULATION WAS GROWING AT A RATE OF 2.8 MILLION
PER YEAR, IN THE 1960's THE RATE SLOWED TO 2.4 MILLION,
AND NOW IT IS ONLY 1.7 MILLION AND IS CONTINUING TO DECREASE,
METROPOLITAN AREAS HAVE BEGUN TO LOSE POPULATION.
ONLY TWO METROPOLITAN AREAS HAD A NET DECREASE IN POPULATION
BETWEEN 1960 AND 1970, AS OPPOSED TO 24 BETWEEN 1970 AND 1973.
R.
FORD
GERALD
-10-
PRIVATE INDUSTRY, AS HAS ALWAYS BEEN ITS CENTUS, IS
ADAPTING TO CHANGING ECONOMIC CONDITIONS AS WELL AS CHANGES
IN DEMAND, A NEW PRODUCT MIX IS EMERGING TO SATISFY THE
DESIRE FOR HOMEOWNERSHIP,
TOWNHOUSES, FOR EXAMPLE, HAVE INCREASED THEIR SHARE
OF THE HOUSING MARKET BY 67 PERCENT IN JUST THREE YEARS,
BECAUSE THEY USE LESS LAND, MATERIALS, AND ENERGY, ACCORDING
TO MANY BUILDERS, THE UNIT PRICE CAN BE AS MUCH AS $10,000
LESS THAN A COMPARABLE SINGLE DETACHED HOME.
CONDOMINIUMS HAVE GROWN EVEN MORE DRAMATICALLY, IN
1970 THERE WERE ONLY 85,000 CONDOMINIUM UNITS NATIONWIDE.
TODAY, THERE ARE OVER 1 MILLION, CONDOMINIUMS REPRESENT
ANOTHER LOWER COST MEANS FOR PROVIDING OWNERSHIP OPPORTUNITIES.
EVEN THE TRADITIONAL SINGLE-FAMILY DETACHED DWELLING
SEEMS TO BE UNDERGOING A METAMORPHOSIS. FOR THE PAST DECADE
THE SINGLE-FAMILY HOME INCREASED IN SQUARE FOOTAGE AND
BECAME LADENED WITH EXPENSIVE AMENITIES. TOW-CAR GARAGES,
EXTRA BEDROOMS, LARGE FAMILY ROOMS, WALK-IN CLOSETS, AND
EVERY CONCEIVABLE ELECTRICAL APPLIANCE BECAME ALMOST STANDARD.
R.
LIBRARY GERALD FORD
-11-
JUST AS THE FUEL CRISIS MADE US QUESTION THE LARGE
ENERGY CONSUMING VEHICLES WHICH WERE ONCE SYMBOLIC OF OUR
NATIONAL LIFE STYLE, WE SEEM TO BE RETHINKING THE KIND OF
HOME IN WHICH WE LIVE. THE BASIC "NO FRILLS" HOUSE WITHOUT
MANY OF THE AMENITIES WHICH WE HAVE TAKEN FOR GRANTED IN
RECENT YEARS IS STAGING A COMEBACK. BUILDERS WHO ELIMINATE
GADGETS, LEAVE A ROOM UNFINISHED, REPORT THAT THEY CAN SLASH
A $30,000 PRICE TO $17,000.
ALL RIGHT, so WHERE DOES ALL OF THAT LEAVE us? IT
DOES SUGGEST THAT MAYBE WE SHOULD START LOOKING AT THE
OLD AMERICAN DREAM THROUGH A PAIR OF NEW AMERICAN EYE GLASSES,
BUT, THE REAL QUESTION IS WHETHER HOMEOWNERSHIP IS A
NATIONAL GOAL TO BE PURSUED OR, TO PUT IT ANOTHER WAY, WHAT
HARM WOULD COME TO OUR SOCIETY IF WE WERE TO BECOME A NATION
OF RENTERS?
To BE SELFISH ABOUT IT, AS LONG AS WE OWN OUR OWN HOME,
DO WE REALLY CARE IF THE REST OF THE NATION BUYS OR RENTS?
GERALD R. FORD
-12-
YES, WE DO. THE FAMILY WHO OWNS ITS OWN HOME, NOT
ONLY HAS AN INVESTMENT IN A HOUSE, IT HAS AN INCENTIVE TO
TAKE AN ACTIVE ROLE IN THE DECISIONS WHICH SHAPE ITS NEIGHBORHOOD,
ITS COMMUNITY, ITS SCHOOLS, AND CHURCHES, BECAUSE THE FAMILY
HAS A REAL INVESTMENT IN A STRUCTURE, IT ALSO HAS AN INVESTMENT
IN ITS ENVIRONMENT.
THOSE SAME FAMILY MEMBERS AS RENTAL TENANTS MIGHT STILL
CLASSIFY AS "GOOD NEIGHBORS", BUT OTHER THAN SOCIAL PRESSURE,
THEY HAVE NO PERMANENT INCENTIVE TO BE SUCH.
IT IS AXIOMATIC THAT WHEN NEIGHBORHOODS TURN FROM "OWNER"
TO "RENTAL" PROPERTIES, EVIDENCE OF NEGLECT BEGINS TO SHOW
ALMOST IMMEDIATELY. THE REVERSE IS ALSO TRUE. A TOOL TO
IMPROVE THE URBAN NEIGHBORHOOD IS TO ENCOURAGE A CORE OF
HOMEOWNERS,
HOMEOWNERSHIP PROVIDES A SENSE OF IDENTITY, OF ROOTS
AND OF SECURITY, WHICH IS THE STUFF FROM WHICH NEIGHBORHOODS
ARE MADE AND WHICH PROTECT AGAINST SOCIAL ALIENATION,
R.
FORD
GERALD
-13-
FINALLY, HOMEOWNERS HAVE IN EFFECT ^ FORCED INVESTMENT,
AND PERHAPS THEIR ONLY ONE. THEY ALSO HAVE A SHARE IN THE
NATION'S ECONOMIC GROWTH, AND HENCE A HEDGE AGAINST INFLATION
IN THE FORM OF APPRECIATION THAT HOMEOWNERSHIP HAS GIVEN MIDDLE
AMERICA.
IF HOMEOWNERSHIP IS SO IMPORTANT, WHAT ARE WE DOING TO
MAINTAIN AND TO INCREASE ITS AVAILABILITY?
FIRST WE MUST REMEMBER THAT THE PRINCIPAL CAUSE OF THE
CURRENT CRISIS IS THAT AS RAMPANT INFLATION PUSHED UP THE
COST OF HOUSING, A RECESSION DECREASED REAL PURCHASING POWER,
THUS, ONE ABSOLUTE PRE-REQUISITE OF A REGENERATION OF THIS
AMERICAN DREAM IS A GENERAL ECONOMIC RECOVERY, WHICH WILL
HALT INFLATION AND REDUCE THE DISPARITY BETWEEN HOUSING COSTS
AND INCOME,
SOME SIGNS OF RECOVERY ARE APPEARING IN BOTH THE GENERAL
ECONOMY AND IN THE HOUSING INDUSTRY.
R.
FORD
GERALD
-14-
IN HOUSING, EXISTING HOMES ARE SELLING AT THEIR HIGHEST
LEVELS IN 15 MONTHS. SALES OF NEW HOMES ROSE 24 PERCENT IN
APRIL AND ANOTHER 5 PERCENT IN MAY TO REACH THEIR HIGHEST
LEVEL SINCE 1973, THERE HAS BEEN is 22 PERCENT IMPROVEMENT
IN THE LEVEL OF ALL HOUSING STARTS SINCE THE FIRST OF THE
YEAR AND A 26 PERCENT IMPROVEMENT IN SINGLE-FAMILY STARTS.
IT IS ALWAYS FASHIONABLE TO "BLANE WASHINGTON" WHEN
MOBODY ELSE SEEMS TO HAVE THE RIGHT ANSWERS, WELL, IN
THIS INSTANCE THE ADMINISTRATION HAS MOVED FORCEABLY TO
ATTACK THE PROBLEM AT THE CORE -- IN THE MORTGAGE MARKET.
THAT IS WHERE MR. HOMEOWNER MUST WORK IT OUT BEFORE HE CALLS
THE MOVERS,
OVER THE PAST 18 MONTHS, THE GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION, A PART OF HUD, HAS PROMISED MORE THAN $13.5
BILLION TO PURCHASE FROM LENDERS ALMOST 450,000 MORTGAGES
BEARING BELOW MARKET INTEREST RATES, NOW 7-1/2 PERCENT.
R.
FORD
GERALD
LIBRARY
-15-
HUD SELLS THE MORTGAGE IN THE MARKETPLACE AT A DISCOUNT.
AND ABSORBS THE DIFFERENCE BETWEEN THE PURCHASE AND THE SALES
PRICE AS A SUBSIDY,
FROM THE CONSUMERS VIEW HERE'S HOW IT WORKS, A FAMILY
PURCHASES SAY A $39,000 HOME AND NEEDS A $35,000 MORTGAGE.
By OBTAINING A MORTGAGE BEARING 7-1/2 PERCENT INTEREST,
INSTEAD OF 9 PERCENT, THE FAMILY SAVES ABOUT $9,500 OVER
THE LIFE OF THE MORTGAGE AND ABOUT $20 ON ITS MONTHLY
PAYMENTS. THIS INCREASES HOMEOWNERSHIP OPPORTUNITIES.
THIS PAST JUNE 24, PRESIDENT FORD DIRECTED THE RELEASE
OF AN ADDITIONAL $2 BILLION IN MORTGAGE PURCHASE AUTHORITY
WHICH WILL ASSIST ANOTHER 65,000 HOMEBUYERS.
ON JULY 2, THE PRESIDENT SIGNED THE EMERGENCY HOUSING
ACT OF 1975, WHICH GIVES HUD DISCRETIONARY AUTHORITY TO
PURCHASE UP TO $10 BILLION OF ADDITIONAL MORTGAGES WHICH
IS ENOUGH TO ASSIST 300,000 MORE HOMEBUYERS.
STILL, SOME CRITICS OF CURRENT HOUSING POLICY HAVE
CONTENDED THAT THE GOVERNMENT SHOULD SUBSIDIZE AN ALL-OUT
PRODUCTION EFFORT TO PRIME THE ECONOMY AND IN SO DOING,
R.
FORD
IT IS ARGUED, WILL EXPAND OPPORTUNITIES FOR HOMEOWNERSHIP.
GER
LIBRARY
- 16 -
Bur WOULD IT? AND, AT WHAT COST TO COMPETING NATIONAL
PRIORITIES?
IF WE ENGAGE IN AN ALL-OUT GOVERNMENT SUBSIDIZED
PRODUCTION PROGRAM, WE WILL NECESSARILY FORCE GREATER
TREASURY BORROWING WHICH WILL AGAIN DRIVE UP THE COST OF
MONEY AND WITH IT MORTGAGE INTEREST RATES, THUS,
HOMEOWNERSHIP WILL BE PUSHED BEYOND THE REACH OF EVEN
A GREATER SEGMENT OF AMERICANS,
AND, THIS IS THE REAL RUB. BECAUSE IF WE SET
POLICIES THAT REFLAME THE INFLATION --- IF WE WIDEN
THE GAP BETWEEN REAL INCOME AND HOUSING COSTS, WE
WILL HAVE LOST THE WAR WE MEANT TO WIN.
BUT WHAT ABOUT THE OTHER COSTS?
IN THE PAST THE FEDERAL GOVERNMENT HAS SUBSIDIZED
THE CONSTRUCTION COSTS OF THOUSANDS OF HOUSES, ENTICING
HOMEOWNERS TO LEAVE CITIES FOR NEWLY BUILT SUBURBS. OUR
YEARS OF ABUNDANCE SOMEHOW FOSTERED THE DISASTROUS NOTION
THAT CITIES COULD BE DISCARDED AND REPLACED.
GERALD R. FORD
but 17 -
OUR CITIES 1101.D A LARGE PROPORTION OF OUR EXISTING
HOUSING STOCK, ALONG WITH NEEDED WATER AND SEWER LINES,
FACTORIES, ROADS, SCHOOLS, TRANSPORTATION SYSTEMS, AND
UTILITIES. YET WE, AS A NATION, ABANDON OR UNDER-UTILIZE
ALL OF THESE ASSETS TO i. SHOCKING DEGREE.
AND, WHEN WE ABANDON A HOUSING UNIT IN A CITY, WE
ALSO ABANDON A PART OF ALL THESE SUPPLEMENTARY ASSETS.
Just THINK, IN NEW YORK CITY ALONE 35,000 UNITS OF
HOUSING ARE ABANDOMED EACH YEAR.
IT IS CLEAR THAT IN TODAY'S ECONOMY WE CAN NO LONGER
TOLERATE WASTEFUL POLICIES WHICH UNDERUTILIZE THE ASSETS
OF OUR CENTRAL CITIES, WHILE BUILDING NEW ONES AT ITS
OUTER FRINGE,
SUBURBAN SPRAWL ALSO IMPOSES SERIOUS ENVIRONMENTAL
AND SOCIAL COSTS, INCLUDING AN EXCESSIVE DEPENDENCE ON
THE AUTOMOBILE,
HUD's RECENT STUDY OF THE COSTS OF SPRAWL DEMONSTRATES
THAT RECYCLING CITIES IS FAR LESS COSTLY THAN SUBURBAN
DEVELOPMENT IN TERMS OF CAPITAL, LAND, ENERGY AND ECOLOGICAL
GERALD R. FORD
- 18 -
PERDITURES. URBAN DEVELOPMENT MAY CONSUME AS LITTLE AS
50 PERCENT LESS LAND, REQUIRE 55 PERCENT LESS CAPITAL
INVESTMENT, CREATE 45 PERCENT LESS AIR POLLUTION, AND
CONSUME 411 PERCENT LESS ENERGY THAN SUBURBAN SPRAWL.
AT A TIME WHEN SOME OF OUR CITIES CAN NO LONGER AFFORD
TO COLLECT THE GARBAGE OR PROVIDE OTHER BASIC SERVICES,
CAN WE AFFORD THESE COSTS?
To SUM U!' ALL OF THIS, WE DO NOT INTEND TO PERMIT
THE DREAM OF. HOMEOWNERSHIP TO END, BUT WE WILL NOT
MINDLESSLY SPARK A MASSIVE SUBSIDY OF HOUSING PRODUCTION
THAT WILL DEFECT THE VERY GOALS WE HAVE SET OUT TO
ACCOMPLISH,
POLICIES THAT REFLECT THE ECONOMIC AND SOCIAL
REALITIES OF TODAY WILL DO FAR MORE TO PROTECT THE
AMERICAN DREAM THAN RENEWAL OF MASSIVE PRODUCTION
POLICIES WHICH HAVE CONTRIBUTED TO OUR CURRENT
DIFFICULTIES.
THIS IS AFTERALL THE LAND WHERE MORE HOMES OF
BETTER QUALITY ARE OWNED SY A HIGHER PERCENTAGE OF
PEOPLE THAN ANY WHERE ELSE IN THE WORLD. WE INTEND
TO KEEP 11 THAT WAY.
GERALD R. FORD LIBHMA