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10/29/75 - Vice President's White House Public Forum, Tampa
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10/29/75 - Vice President's White House Public Forum, Tampa
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This file contains material relating to Waste, Homeownership Subsidy Program, Conspicuous Consumption.
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Carla A. Hills Speeches
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The original documents are located in Box 1, folder "10/29/75 - Vice President's White
House Public Forum, Tampa" 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States of America his copyrights in all of his unpublished writings in National Archives collections.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
VICE PRESIDENT'S WHITE HOUSE PUBLIC FORUM
TAMPA, FLORIDA
OCTOBER 29, 1975
THE FISCAL PROBLEMS OF ALL THREE LEVELS OF GOVERNMENT
ARE PROFOUND AND DISTRACTING.
INFLATION HAS PUSHED UP THE COST OF PROVIDING SERVICES
WHILE RECESSION HAS PUSHED UP THE DEMAND FOR THOSE SERVICES,
THE FACT IS THAT ALL THREE LEVELS OF GOVERNMENT HAVE
FEWER DOLLARS TO SATISFY GREATER NEEDS.
Too FREQUENTLY THE ISSUE SEEMS TO BE PRESENTED TO THE
PUBLIC AND TO THE MEDIA IN TERMS OF:
SHOULD WE SPEND MORE MONEY OR SHOULD WE SPEND LESS TO
RESTORE OUR ECONOMY TO A HEALTHY AND GROWING STATE?
OUR ANALYSIS MUST BE MORE PROFOUND AND OUR SOLUTIONS
MORE CREATIVE.
GERALD FL FORD LIBRARY
-2-
THIS FORUM OFFERS US THE OPPORTUNITY TO CONSIDER WHAT
BALANCE OF INTER-ACTION AMONG THE THREE LEVELS OF GOVERNMENT
WILL DELIVER NEEDED SERVICES WITH THE LEAST WASTE TO THE
TAXPAYER.
COMING UP ON ITS 10TH BIRTHDAY, HUD's JOB IS TO ASSIST
IN THE DEVELOPMENT OF WORKABLE URBAN COMMUNITIES WHICH MEANS
-- DECENT HOUSING IN A SUITABLE LIVING ENVIRONMENT AND
EXPANDING ECONOMIC OPPORTUNITIES -- PARTICULARLY FOR PEOPLE
WITH LOW AND MODERATE INCOMES.
AT HUD WE GET A WIDE VARIETY OF COMPLAINTS -- BUT THEY
ALL HAVE A COMMON DENOMINATOR:
MONEY!
SOME OF OUR FRIENDS -- AND ALL OF OUR CRITICS WANT
US TO GIVE MORE AT THE OFFICE,
As A PREMISE TO OUR QUESTION AND ANSWER SESSION, LET'S
TAKE A BRIEF TOUR OF HUD AND THE HOUSING SITUATION AND SEE
WHAT'S GOING ON.
-3-
THE BEST THING THAT'S GOING ON IS THE FIRST ANNIVERSARY
OF THE HOUSING AND COMMUNITY DEVELOPMENT Act OF 1974.
IT GIVES CITY PLANNERS AND MANAGERS THE FIRST SAY --
AND CONTROL -- IN WHAT THEIR CITIES REALLY NEED.
UNDER THE AcT, CONGRESS AUTHORIZED $8.3 BILLION FOR
COMMUNITY DEVELOPMENT IN THE FIRST THREE-YEAR PERIOD --
$2.6 BILLION IN THE CURRENT YEAR ALONE.
Now, LET'S TURN TO THE PLIGHT OF THE CITIES THEMSELVES.
WHAT IS THE BIGGEST SINGLE CAUSE OF URBAN DECAY?
WASTE! LITERALLY THOUSANDS OF UNITS OF HOUSING ARE
ABANDONED EACH YEAR.
THE WASTE IS NOT JUST IN THE HOUSE OR UNIT ITSELF --
BUT IN THE UTILITIES, STREETS, SCHOOLS AND TRANSPORTATION
THAT TOOK YEARS TO DEVELOP. AN ABANDONED HOUSE ABANDONS
A PART OF THOSE INDISPENSIBLE SUPPORTIVE ASSETS AS WELL.
-4-
IN THE RUSH OF PEOPLE TO THE OUTSKIRTS OF TOWN, WE
HAVE FOSTERED THE DISASTROUS NOTION THAT CITY HOUSING CAN
BE DISCARDED -- AND EASILY REPLACED OUTSIDE THE CITY BOUNDARIES.
BUT, OUR STUDIES CONCLUDE -- STATISTICALLY -- WHAT WE
MIGHT HAVE CONCLUDED -- INTELLIGENTLY -- A DECADE AGO,
THAT IT IS 50 PERCENT LESS COSTLY -- IN TERMS OF LAND,
ENERGY, CAPITAL AND ENVIRONMENTAL IMPACT -- TO RECYCLE A
CITY THAN IT IS TO BUILD A SUBURB,
IN TODAY'S ECONOMY CAN OUR NATION AFFORD THIS KIND OF
WASTE?
THE ANSWER IS AN EMPHATIC "NO".
OUR FIRST YEAR WITH COMMUNITY DEVELOPMENT GRANTS SHOWS,
UNMISTAKENABLY, THAT IF THE FEDERAL GOVERNMENT KEEPS ITS
HEAVY HAND OUT OF LOCAL DECISION-MAKING, THE CITIES CAN AND
WILL ADDRESS THE PROBLEM.
-5-
MORE THAN 60 PERCENT OF THE $2.6 BILLION COMMUNITY
DEVELOPMENT FUNDS GRANTED IN THE PAST FISCAL YEAR HAS GONE
INTO THE PRESERVATION AND REHABILITATION OF DECAYING NEIGHBORHOODS.
ANOTHER IMPORTANT PART OF THE NEW Act PROVIDES RENTAL
SUBSIDIES FOR LOWER INCOME FAMILIES -- ALLOWING THEM TO
FIND DECENT QUARTERS IN QUALIFIED BUILDINGS OF THEIR OWN
CHOOSING, AT A RENTAL THEY CAN AFFORD TO PAY.
AGAIN, THE LOCAL COMMUNITY ITSELF HAS THE MAJOR SAY IN
HOW THE RENTAL SUBSIDIES WILL BE USED, WHETHER IN NEWLY
CONSTRUCTED, SUBSTANTIALLY REHABILITATED OR EXISTING HOUSING
UNITS.
OUR GOAL TO HELP PROVIDE A SUITABLE LIVING ENVIRONMENT
FOR EVERY AMERICAN FAMILY MAY SEEM NAIVE IN TODAY'S ECONOMY.
WE ALL KNOW THAT HOUSING IS SUFFERING A SEVERE CASE OF
CONTAGIOUS INFLATION.
INDUSTRY ECONOMISTS CAN SHOW YOU THAT OUR MEDIAN INCOME
FAMILY -- MAKING $13,000 A YEAR -- CAN SUPPORT A HOME COSTING
$32,500. BUT, IN FACT, TODAY'S MEDIAN NEW HOME SELLS FOR
$39,000.
-6-
DOES ALL THIS MEAN THAT THE AMERICAN DREAM OF HOMEOWNERSHIP
HAS BECOME A NIGHTMARE?
WHAT IT SHOULD TELL US IS THAT THE TIME HAS COME TO
START REORDERING OUR PRIORITIES.
Yes, THE COST OF THE MEDIAN HOUSE IS UP,
BUT, so IS THE SIZE OF THAT MEDIAN HOUSE.
IN FACT, IT IS ALMOST 50 PERCENT LARGER THAN IN 1950
-- WITH GUEST ROOMS, "FAMILY" ROOMS, LAUNDRY ROOMS, BATHROOMS,
AND TWO ROOMS TO HOUSE THE CARS,
OF COURSE, NOT EVERY HOUSE HAS ALL THOSE ROOMS -- BUT
THE MANY THAT DO INFLATE THAT STATISTICAL "MEDIAN".
AND THE PROMOTIONAL PUSH BEHIND THOSE "EVERYTHING"
HOUSES HAS BEEN ENOUGH TO MAKE THE "AVERAGE" BUYER OF THE
"AVERAGE" HOME BEGIN TO BELIEVE THAT SUCH FRILLS MUST BE
"NECESSITIES".
-7-
PERHAPS THEY ARE. BUT MAYBE -- THEY'RE LIKE THE OVER-
POWERED, SLEEKLY APPOINTED AND EXPENSIVE SUPER CARS THAT
COLLIDED WITH OUR ENVIRONMENT CONCERNS AND THE GASOLINE
SHORTAGE,
MODERN BUILDERS WHO LEAVE AN UNESSENTIAL ROOM OR TWO
UNFINISHED HAVE FOUND THAT THEY CAN CUT THE ASKING PRICE
OF A HOUSE FROM $30,000 TO $17,000.
THE SIGN OF THE TIMES IS REFLECTED IN THE HOUSING
INDUSTRY'S ACCEPTANCE OF THE CHALLENGE. TOWNHOUSES, CLUSTER
HOMES AND CONDOMINIUMS ARE ACCOUNTING FOR A GROWING PERCENTAGE
OF SINGLE-FAMILY HOMES,
Is COST THE ONLY REASON?
THE TRUTH BEHIND THE INCREASING POPULARITY OF THE
NATION'S NEW "CONVENIENCE" HOUSING IS THAT AMERICA ITSELF
HAS BEEN UNDERGOING A DRAMATIC CHANGE IN ITS OWN LIFE STYLES
AND DEMOGRAPHICS.
-8-
THE CHANGE IS UNDERSCORED BY THE REMARKABLE INCREASE
IN SMALLER, ADULT-ORIENTED HOUSEHOLDS.
SINGLE PEOPLE, YOUNG MARRIEDS, CHILDLESS COUPLES AND
THE ELDERLY ACCOUNT FOR 82 PERCENT OF OUR NET POPULATION
GAIN BETWEEN 1970 AND 1973.
THE RESULT HAS BEEN THE DEMAND -- AND THE CONTINUING
NEED -- FOR SMALLER UNITS, MORE ACCESSIBLE TO NEAR-BY INDUSTRY
AND EMPLOYMENT OPPORTUNITIES.
ALL THIS IS FACT, BUT THE HOUSING INDUSTRY IS STILL
DEPRESSED, AND YOU HAVE A RIGHT TO ASK WHAT HUD's DOING
ABOUT IT.
THE FIRST THING WE'RE DOING IS GIVING ALL-OUT SUPPORT
TO PRESIDENT FORD'S ECONOMIC PROGRAM.
HOUSING RECOVERY IS TIED TO THE RECOVERY OF THIS
COUNTRY'S OVERALL ECONOMY. UNLESS THIS NATION CAN HALT
INFLATION AND REDUCE THE DISPARITY BETWEEN ACTUAL COSTS
AND REAL INCOME, THE HOUSING INDUSTRY WILL NOT RECOVER,
-9-
ALL OF US KNOW THE BAD NEWS. THE GOOD NEWS IS THAT
THE PRESIDENT'S NATIONAL PLAN HAS ALREADY BEGUN TO TURN
THE ECONOMY AROUND.
IN HOUSING, SALES OF NEW HOMES HAVE RISEN 37 PERCENT
SINCE THE FIRST OF THE YEAR, THERE HAS BEEN A 40 PERCENT
IMPROVEMENT IN THE LEVEL OF HOUSING STARTS.
THE SECOND THING WE'RE DOING IS FOLLOWING THROUGH ON
THE ADMINISTRATION'S FORCEFUL INITIATIVE TO ENSURE GREATER
AVAILABILITY OF MORTGAGE CREDIT FOR PERSONS OF MODERATE MEANS,
IN THE PAST 18 MONTHS, HUD HAS OFFERED $15.5 BILLION
TO PURCHASE OVER 500,000 MORTGAGES BEARING INTEREST RATES
THAT ARE BELOW THE MARKET RATE. TODAY THAT IS 7-1/2 PERCENT
WHILE THE MARKET IS AT ABOUT 9 PERCENT.
FOR THE FAMILY NEEDING A $35,000 MORTGAGE, A 7-1/2
PERCENT TANDEM MORTGAGE INSTEAD OF A 9 PERCENT MARKET MORTGAGE,
SAVES IT $9,500 OVER THE LIFE OF THE MORTGAGE OF ABOUT $20
A MONTH.
-10-
THIS PROGRAM HAS COMPENSATED TO A SIGNIFICANT DEGREE
FOR THE RAPIDLY RISING COSTS OF HOME FINANCING AND HAS THUS
SERVED TO CUSHION THE SEVERITY OF THE DEPRESSION IN HOUSING.
THE THIRD THING WE ARE DOING IS REACTIVATING HUD's
HOMEOWNERSHIP SUBSIDY PROGRAM -- IN SUBSTANTIALLY REVISED
FORM.
To SPUR NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION
OF SINGLE-FAMILY HOMES FOR LOW AND MODERATE INCOME FAMILIES
AND
To EXPAND OWNERSHIP OPPORTUNITY FOR THOSE INCOME GROUPS
WHO HAVE TRADITIONALLY BEEN PURCHASERS OF NEW HOMES BUT WHO
HAVE BEEN OF LATE PRICED OUT OF THE MARKET BY THE INFLATIONARY
SPIRAL.
THE PROGRAM WILL FOCUS ON NEW AND SUBSTANTIAL REHABILITATION
AND WILL INVOLVE $264.1 MILLION IN NEW CONTRACT AUTHORITY.
By TOTAL INDUSTRY YARDSTICK, $264.1 MILLION MIGHT SEEM
LIKE A SMALL PATCH ON THE ROOF, BUT, IT'S ENOUGH TO SUBSIDIZE
MORE THAN 250,000 NEW UNITS OF HOUSING.
-11-
AND, 250,000 UNITS TRANSLATES INTO ABOUT SIX-AND-ONE-HALF
BILLION DOLLARS IN NEW CONSTRUCTION ACTIVITY AND THE CREATION
OF MORE THAN 500,000 NEW CONSTRUCTION JOBS.
CERTAINLY, I AM NOT TELLING YOU THAT THESE THREE FEDERAL
PROGRAMS WILL MAKE EVERYTHING COME UP ROSES IN THE HOUSING
INDUSTRY THE DAY AFTER TOMORROW,
WE WILL NEED TO CONTINUE TO USE THESE PROGRAMS -- WITH
CAUTION -- WITH AN EYE ON THE TOTAL ECONOMY,
WE KNOW THAT IF WE MAKE EXCESSIVE USE OF THESE STIMULANTS,
WE WILL INJURE THE HOUSING INDUSTRY JUST AS IT IS REGAINING
ITS HEALTH.
WE ALL KNOW THAT BY REQUIRING MUCH GREATER TREASURY
BORROWING WE WILL DRIVE UP THE COST OF MORTGAGE MONEY GENERALLY
AND DRIVE AWAY THOSE HOMEBUYERS WHO WOULD OTHERWISE HAVE
ENTERED THE MARKET.
THE INDUSTRY IS FORGING AHEAD. THE UPWARD CURVE IS
SAW-TOOTHED, BUT IT IS DEFINITELY SAW-TOOTHING ITS WAY IN
THE RIGHT DIRECTION.
-12-
IN SHORT -- YES, WE HAVE PROBLEMS. LOTS OF THEM --
SOME OF THEM AGONIZING,
BUT, WE FACE A CHALLENGE. ONE THAT IS WORTHY OF --
AND INDEED SURMOUNTABLE WITH THE APPLICATION OF ALL OF OUR
ENERGY, INGENUITY AND HORSE SENSE.
THANK YOU,
&
FORD
BIT