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2/6/76 - Republican National Conference
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1133452
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document
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2/6/76 - Republican National Conference
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Carla A. Hills Speeches
Speeches
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Construction industry
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Fiscal policy
Housing
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1976-02-06
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1976
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6
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1976-02-06
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2
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1976
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The original documents are located in Box 2, folder "2/6/76 - Republican National
Conference" 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States of America his copyrights in all of his unpublished writings in National Archives collections.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 2 of the Carla A. Hills Speeches at the Gerald R. Ford Presidential Library
FINAL
REPUBLICAN NATIONAL CONFERENCE
FEBRUARY 6, 1976
SINCE YOU INVITED ME HERE TO ANSWER QUESTIONS, YOU WILL
BE SPARED A LONG SPEECH.
BUT, I THOUGHT IT MIGHT BE USEFUL TO START WITH A
"NUTSHELL" SITUATION REPORT ON HUD, HOUSING PROBLEMS AND
PROSPECTS AND, PARTICULARLY THE FORD ADMINISTRATION'S PROGRAMS
AND RECOMMENDATIONS FOR THE YEAR IMMEDIATELY BEFORE US,
THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT IS JUST
10 YEARS OLD. IT IS SPECIFICALLY AUTHORIZED BY CONGRESS TO
"ASSIST" IN THE DEVELOPMENT OF VIABLE URBAN COMMUNITIES --
WHICH INCLUDES DECENT HOUSING -- PARTICULARLY FOR PEOPLE WITH
LOW AND MODERATE INCOMES.
I ACCENT THE WORD "ASSIST" -- BECAUSE IT IS NEITHER OUR
MANDATE NOR OUR INTENT TO TAKE OVER THE JOB OF RUNNING ANY OF
OUR NATION'S INDEPENDENT STATES OR LOCALITIES.
THE HOUSING AND COMMUNITY DEVELOPMENT AcT SIGNED INTO
LAW BY PRESIDENT FORD ON AUGUST 22, 1974 INITIATED A NEW
ERA IN THE RELATIONSHIP BETWEEN HUD AND LOCAL GOVERNMENTS.
GERAILO a. FORD LIBRAST
-2-
UNDER THE AcT, HUD IS AUTHORIZED TO GIVE LOCAL COMMUNITIES
$8.3 BILLION FOR COMMUNITY DEVELOPMENT OVER A 3 YEAR PERIOD.
THESE FUNDS ARE GIVEN TO THE LOCALITIES WITH THE FEWEST
POSSIBLE STRINGS ATTACHED, ALLOWING THEM GREAT FLEXIBILITY IN
MEETING REAL LOCAL NEEDS AS IDENTIFIED BY THE PEOPLE WHO
ACTUALLY LIVE THERE.
TODAY, NO CITY OFFICIAL CAN SAY HE'S INSTALLING A SEWER
-- INSTEAD OF DOING SOMETHING OF HIGHER URGENCY TO HIS COMMUNITY
-- ON THE GROUNDS THAT ALL WASHINGTON IS HANDING OUT IS SEWER
MONEY.
OUR FIRST YEAR WITH THE COMMUNITY DEVELOPMENT GRANTS SHOWS,
UNMISTAKENLY, THAT IF THE FEDERAL GOVERNMENT KEEPS ITS HEAVY
HAND OUT OF LOCAL DECISION-MAKING, THE CITIES ARE CAPABLE OF
MAKING THE RIGHT MOVES TO HELP THEMSELVES.
MORE THAN 60 PERCENT OF THE $2.6 BILLION GRANTED THIS FIRST
YEAR WERE USED FOR PRESERVATION AND REHABILITATION OF DECLINING
AND BLIGHTED NEIGHBORHOODS.
Now, THIS STRIKES US AS A SENSIBLE ECONOMY,
-3-
THIS ALSO UNDERSCORES THE GREAT ADVANTAGE OF BLOCK
GRANTS -- A SPECIAL FORM OF REVENUE-SHARING -- OVER THE OLD
CATEGORICAL GRANTS.
By LEADING US AWAY FROM THINKING ABOUT CITY PROBLEMS IN
SEVEN ENUMERATED CATEGORIES, WE ARE DEVELOPING INNOVATIVE AND
COST-EFFECTIVE STRATEGIES FOR DEALING WITH REAL, NOT ASSUMED
PROBLEMS,
ANOTHER IMPORTANT PART OF OUR 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 HAS THE MAJOR SAY IN HOW THE
RENTAL SUBSIDIES WILL BE USED, WHETHER IN NEWLY CONSTRUCTED,
SUBSTANTIALLY REHABILITATED OR EXISTING HOUSING UNITS.
By ALLOWING CITIES TO UTILIZE EXISTING HOUSING STOCK,
WE NOT ONLY PROVIDE HOUSING AT A LOWER COST, WE ASSIST IN
THE PRESERVATION OF URBAN NEIGHBORHOODS.
-4-
HUD's BUDGET FOR 1977 CALLS FOR INCREASES IN THESE TWO
KEY PROGRAMS OF HOUSING AND COMMUNITY DEVELOPMENT WHILE
MAINTAINING HUD TOTAL OUTLAYS AT 1976 LEVELS.
FIRST, WE PROPOSE DIRECT SUBSIDY ASSISTANCE FOR OVER
500,000 FAMILIES -- THE KIND OF NUMBERS YOU HAVEN'T HEARD
FROM HUD IN A LONG TIME.
SECOND, WE REQUEST FULL AUTHORIZATION FOR COMMUNITY
DEVELOPMENT BLOCK GRANTS, HERE AGAIN -- YOU'LL FIND THAT
SUCH A REQUEST FOR FULL STATUTORY AUTHORIZATION OF AVAILABLE
FUNDS IS NEW TO HUD's RECENT HISTORY. THIS FOCUS ON REAL
NEEDS AT THE LOCAL LEVEL IS IN ACCORD WITH THE PRESIDENT'S
DESIGN FOR "NEW REALISM" IN FEDERAL PROGRAMS,
THIRD, WE PLAN A DELIBERATE, SHARP DROP IN HUD's INVENTORY
OF ACQUIRED PROPERTIES. AND, WE INTEND TO SHOW A REAL CUTBACK
IN THE RATE OF MORTGAGE ASSIGNMENTS. WE WILL USE SOME OF OUR
RENTAL SUBSIDY FUNDS TO HELP FAMILIES LIVING IN PROJECTS IN
DEFAULT OR IN INVENTORY, so THAT THOSE PROJECTS CAN BE ADEQUATELY
MAINTAINED AND FULLY OCCUPIED.
-5-
THESE PROGRAM LEVELS SQUARE WITH PRESIDENT FORD'S CALL
FOR "COMMON SENSE" GOVERNMENT AND HONESTY WITH THE AMERICAN
PEOPLE.
THEY "PROMISE NO MORE THAN WE CAN DELIVER" BUT THEY GIVE
HUD THE MEANS TO "DELIVER ON ALL THAT WE PROMISE".
BUT, YOU HAVE HEARD MUCH OF THE FRAGILE HEALTH OF THE
HOUSING INDUSTRY, AND YOU HAVE A RIGHT TO ASK WHAT IS HUD
DOING ABOUT THAT PROBLEM,
THE FIRST THING WE ARE DOING IS GIVING ALL-OUT SUPPORT
TO PRESIDENT FORD'S ECONOMIC PROGRAM.
THE HOUSING RECOVERY IS CLOSELY TIED, PERHAPS MORE so
THAN ANY OTHER INDUSTRY, TO THIS COUNTRY'S OVERALL ECONOMIC
RECOVERY, UNLESS THIS NATION CAN KEEP INFLATION UNDER CONTROL,
INTEREST RATES WILL NOT FALL AND THE HOUSING INDUSTRY CANNOT
ACHIEVE OR MAINTAIN A REAL RECOVERY,
You AND I KNOW THAT IT IS FAR MORE EXPEDIENT IN THE
POLITICS OF AN ELECTION CYCLE TO SAY "YES" TO MORE FEDERAL
EXPENDITURES. So, I AM VERY PROUD OF PRESIDENT FORD'S COURAGE
IN SAYING "NO" TO A SUCCESSION OF MEASURES OVER THE PAST 12
MONTHS THAT WOULD HAVE FUELED THE INFLATION THAT HE HAS CUT
IN HALF.
-6-
AND, I LOOK WITH EQUAL PRIDE AT THE PRESIDENT'S
WILLINGNESS TO SAY "YES" TO CAREFULLY THOUGHT-OUT MEASURES
TO INDUCE ECONOMIC RECOVERY.
HE SAID "YES" TO THE USE OF MORTGAGE PURCHASE ASSISTANCE,
AND OVER THE PAST TWO YEARS HUD HAS OFFERED TO BUY OVER
500,000 MORTGAGES ON NEWLY CONSTRUCTED SINGLE-FAMILY HOMES
TO ENABLE HOMEBUYERS TO PURCHASE HOMES AT INTEREST RATES BELOW
THOSE AVAILABLE IN THE MARKET,
USE OF THE TAXPAYERS MONEY IN THIS WAY HAS EXPANDED
HOMEOWNERSHIP OPPORTUNITIES FOR HOMEBUYERS DURING A PERIOD
WHEN INFLATION DROVE THEM FROM THE MARKET AND SLOWED THE
HOUSING INDUSTRY ALMOST TO A POINT OF STOPPING,
HE SAID "YES" AGAIN IN OCTOBER, ENABLING HUD TO REACTIVATE
ITS HOMEOWNERSHIP SUBSIDY PROGRAM UNDER WHICH IT SUBSIDIZES
DOWN TO 5 PERCENT THE INTEREST ON A MORTGAGE IN THE RANGE OF
$20,000 TO $25,000.
THIS PROGRAM WILL SPUR SINGLE-FAMILY HOME CONSTRUCTION
AND EXPAND HOMEOWNERSHIP. ITS FOCUS IS ON LOW AND MODERATE
INCOME FAMILIES WHO TRADITIONALLY HAVE BEEN HOMEBUYERS BUT
WHO ARE NOW PRICED OUT OF THE MARKET.
-7-
OVER $264 MILLION WILL BE SPENT OVER THE NEXT TWO YEARS
TO SUBSIDIZE 250,000 MORTGAGES, GENERATE $6.5 BILLION IN
CONSTRUCTION ACTIVITY AND PUT 500.000 PEOPLE BACK TO WORK,
THESE HAVE BEEN THE VERY TOUGH POLICY CALLS THAT HAVE
LED US TO THE TURN-ABOUT NOW FIRMLY IN PROGRESS.
IN 1974, THE RATE OF INCREASED HOUSING COSTS OUTRAN THE
NATION'S DISPOSABLE FAMILY INCOME -- AND, PREDICTABLY, HOUSING
STARTS DECLINED.
IN 1975, THAT TREND WAS REVERSED. BETWEEN THE FIRST AND
THIRD QUARTERS INCOME ROSE THREE TIMES AS FAST AS NEW HOME
PRICES.
THUS, THE SINGLE-FAMILY HOUSING MARKET REGAINED ITS
HISTORICALLY NEEDED ECONOMIC EQUASION -- AND THE IMMEDIATE
AFTER EFFECT WAS FELT IN HOUSING STARTS.
NEW SINGLE-FAMILY STARTS ARE UP 56 PERCENT FROM THE END
OF 1974 AND ARE NOW JUST BELOW THEIR PEAK YEARS.
BUT, THE MULTI-FAMILY MARKET CONTINUES TO LAG.
-8-
To ASSIST THIS MARKET, WE ANNOUNCED FOUR WEEKS AGO,
THAT $3 BILLION OF MORTGAGE PURCHASE ASSISTANCE WOULD BE
DIRECTED THROUGH FHA TO MULTI-FAMILY CONSTRUCTION. THOSE
DOLLARS TRANSLATE INTO ROUGHLY 120,000 UNITS.
BUT, THERE IS A POINT TO BE MADE AND REMADE -- WE ARE
NOW IN A STAGE OF RECOVERY, AND WE ARE NOT IN A NEW WAVE OF
INFLATION, PRECISELY BECAUSE MONIES HAVE BEEN SPENT TO AID
SPECIFIC PROGRAMS -- AND BECAUSE THE PLANS TO EXPEND HUGE
SUMS OF POORLY FOCUSED FUNDS PROPOSED BY so MANY LAST WINTER
AND SPRING WERE REJECTED.
WE WILL CONTINUE TO USE DISCRETE PROGRAMS TO PROVIDE
CAREFULLY THOUGHT-OUT ASSISTANCE WHERE THERE IS NEED. BUT,
WE WILL NOT FEDERALIZE THE HOUSING MARKET.
WITH THIS COMMON SENSE APPROACH, THE IMPROVEMENT PRESIDENT
FORD HAS LAUNCHED WILL CONTINUE,