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Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
AND TYPE
001. memo
Deepak Bhargava to Brostrom re Personal Data (partial) (1 page)
07/10/1995
P6/b(6)
COLLECTION:
Clinton Presidential Records
Domestic Policy Council
Molly Brostrom
OA/Box Number: 8399
FOLDER TITLE:
Meeting w/Housing Groups, 7/13/95
2012-0326-S
kc771
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - 15 U.S.C. 552(b)]
P1 National Security Classified Information |(a)(1) of the PRAJ
b(1) National security classified information [(b)(1) of the FOIA|
P2 Relating to the appointment to Federal office [(a)(2) of the PRAJ
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute |(a)(3) of the PRAJ
an agency [(b)(2) of the FOIA]
P4 Release would disclose trade secrets or confidential commercial or
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRAJ
b(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRAJ
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
b(8) Release would disclose information concerning the regulation of
of gift.
financial institutions [(b)(8) of the FOIA]
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(9) Release would disclose geological or geophysical information
2201(3).
concerning wells [(b)(9) of the FOIA]
RR. Document will be reviewed upon request.
Mailyn Yage
Leetun landon
Green
sales
Meeting -/ Hsg Groups 7/95
PHOTOCOPY
PRESERVATION
CLINTON LIBRARY PHOTOCOPY
policy need 7 'f Wessnoss
pap wt
Dem Jaims
MEMORANDUM
sizely atts
-promises
TO: Molly Brostrom
FROM: Derek Ho
Rein likes
DATE: July 13, 1995
RE: Note From 7/13/95 Housing Meeting
Please find below notes which may be taken as a fairly comprehensive summary of the
meeting which took place today on the issue of affordable housing.
The Participants and Their Organizations
Nan P. Roman represents the National Alliance to End Homelessness, a bipartisan
organization which includes non-profit housing providers and was founded in 1983.
Alfred Paul "Bud" Kanitz represents the National Neighborhood Coalition, a coalition
of over 4,000 organizations which provide housing in the United States. Founded in 1979,
the Coalition emphasizes its ties with HUD and the Community Reinvestment Act (which the
House Banking Committee has proposed to repeal). The coalition also emphasizes local
control but needs federal support for its continued survival.
Edward Tran, Deepak Bhargava, and Charlotte Sobel all represent the Center for
Community Change, an organization which helps communities empower themselves and
promote change in their own neighborhoods. The Center emphasizes community control and
helps neighborhoods on a free, no-membership basis, as long as they meet certain standards
for acceptance and as long as there are sufficient resources at the center. The Center focuses
on voter rights, public housing, and deannexation, among others.
Nancy Bernstine represents the National Housing Law Project, which provides legal
services for those in public and assisted housing. The Project also focuses on FMHA
programs for rural housing assistance as well as homeless programs.
Marc Granowitter represents the National Low Income Housing Coalition, a coalition
founded in 1974 to increase affordable and public housing, and Section 8 housing. It has
approximately 1000 members. Over the past 3 years, the Coalition has focused on working
with state housing coalitions because of the current political trends. Although it has mixed
feelings about the move back to the states, it does value the customization which becomes
possible when control is increasingly localized.
Gerald Jones represents ACORN, the Association of Communities and Organizations
for Reform Now. This group is a large organization which covers many substantive areas,
including public housing and voter registration.
Tom Shellabarger represents the U.S. Catholic Conference, which is the largest
supplier of homeless shelters in the United States. It is also very active in public housing and
Section 8 housing.
The Overview
Bud Kanitz began by giving an overview of the current relationship between the
Administration and the housing issue. The central focus of the overview was to express that
all public housing and homeless advocates want the President to be more vocal on this
important issue. Through his objections to the Appropriations and rescission packages, the
President has demonstrated some concern for other issues such as education and nutrition.
Yet he has not touched upon a housing and homelessness, which are issues directly related to
those of education and nutrition. Kanitz emphasized that housing needs to become part of the
discussion with regard to the Appropriations and rescissions packages.
Kanitz also expressed dismay at the Administration's silence at the $7 billion cut in
HUD currenlty under consideration by the HUD/VA Subcommittee. The provision, which
would cut HUD from $26 billion to $19 billion, would have a drastic impact on the
Department. Kanitz also emphasized that these cuts are in addition to the cuts which HUD
suffered under Reagan and Bush: HUD under Carter had a budget of $33 billion, and was
reduced to $25 billion by 1992.
Kanitz also emphasized his appreciation for the work of HUD Secretary Henry
Cisneros, who has been a wonderful leader, even within the Administration. Kanitz views
Cisneros as the only high-ranking Administration official who is dedicated to pursuing these
issues. Other participants, however, hinted disagreement with Kanitz; Charlotte Sobel noted
that Jack Kemp was viewed by some more highly than Cisneros because at least he spoke
about the issues and made them visible.
Comments by Other Participants
The remainder of the meeting was split between the other participants, each
commenting on the inadequacy of current policy on housing issues. Gerald Jones described as
"atrocious" the silence of the administration on the rescission package. Although HUD was
40% of the rescission package, there was no significant public comment on the issue by the
President.
In fact, Jones noted that the White House had undercut the position of housing
advocates by floating the idea of eliminating HUD altogether, in exchange for a $100 million
put-back into National Service. The President's willingness to give in on this issue
encouraged the attacks on HUD and undermined any bargaining power that housing advocates
had on the Hill.
Charlotte Sobel also emphasized the need to personalize the issues of housing and
homelessness in order to impress on a weary public the drastic personal consequences of
inaction on this front. Sobel expressed frustration that even members of the Administration
have not witnessed these consequences first-hand.
Tom Shellabarger echoed Sobel's comments, noting that one speech by President
Clinton on Religion in Schools was able attract intense media coverage. Yet the President has
not used his power with the media to discuss the issues of housing.
The Reinvention Plan
Gerald Jones and others then began to criticize the reinvention plan, the provision to
block grant housing monies to the states, and the provision to voucher-out monies SO that low-
income people can enter the private home-buying market.
Marc Granowitter emphasized that the voucher program is dangerous because it leaves
low-income residents to their own, usually inadequate, devices. Low-income home-buyers
would face daunting obstacles: discrimination by landlords, lack of support and safety
networks, lack of oversight into landlord-tenant relations. Also, Granowitter argued that the
program was inadequate because it simply shifted the cost onto the backs of the poor
consumer. The block grant program would also allow reluctant local officials to stymie
efforts toward greater access to affordable housing.
The Housing Constituency
Several participants then sounded a warning bell: The low-income housing
constituency is mad, not only at the Republicans, but also at the President. The President's
neglect has left this constituency in a bad situation, and it is no wonder why they do not vote.
As Nan points out, however, there is a horse-cart problem: The low-income housing
constituency does not vote because the President is not on their side; but the President does
nothing for that constituency because they aren't voting for him.
Legislative Problems
As a summary, the participants described a list of legislative obstacles they currently
face:
1) The rescission bill
2) The HUD/VA Appropriations proposal
3) The proposed Brooke Amendment repeal
4) Cuts in the modernization program
5) The block grant and voucher programs
6) Cuts in the homeless fund
7) Cuts in Section 8 Assistance
- proposal to cut 70,000 certificates and to limit reissues to 50%
- proposed reduction in the Fair Market Rate (FMR) from 45% to 40%
All of these cuts threaten to decrease the market availability of affordable housing, limit
access by low-income residents to affordable housing, and drastically increase displacement
and despair.
What the President Must Do
Ultimately, in order to avoid these devastating cutbacks, the group noted that the
President must make housing an issue when he renegotiates the Appropriations Bill after an
expected initial veto. If not, the President will agree to a revised Appropriations Bill which
leaves these cuts intact. If this occurs, mass displacement will undoubtedly ensue.
Request for Meeting with Leon Panetta
Finally, the group requested a meeting with Leon Panetta.
Withdrawal/Redaction Marker
Clinton Library
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
AND TYPE
001. memo
Deepak Bhargava to Brostrom re Personal Data (partial) (1 page)
07/10/1995
P6/b(6)
COLLECTION:
Clinton Presidential Records
Domestic Policy Council
Molly Brostrom
OA/Box Number: 8399
FOLDER TITLE:
Meeting w/Housing Groups, 7/13/95
2012-0326-S
kc771
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)|
Freedom of Information Act - 15 U.S.C. 552(b)]
P1 National Security Classified Information [(a)(1) of the PRAJ
b(1) National security classified information [(b)(1) of the FOIA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA|
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute [(a)(3) of the PRA]
an agency [(b)(2) of the FOIA]
P4 Release would disclose trade secrets or confidential commercial or
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRAJ
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors |a)(5) of the PRAJ
b(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA|
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
b(8) Release would disclose information concerning the regulation of
of gift.
financial institutions [(b)(8) of the FOIA]
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(9) Release would disclose geological or geophysical information
2201(3).
concerning wells [(b)(9) of the FOIA]
RR. Document will be reviewed upon request.
[001]
Center for Community Change
MEMORANDUM
TO: Molly Brostrom
FR: Deepak Bhargava, Center for Community Change BS
DT: July 10, 1995
RE: Personal Data
Enclosed is the information you requested on the following people
who will participate in the meeting on July 13th at 11:00 am.
The Names and Birth dates of the following are:
Rm211
Nancy Tyler Bernstine
Nat'l Housing Law Project
Deepak Bhargava
Center for Community Change
Marc S. Granowitter
Nat'l Low Income Housing Coalition
Gerald Cooper Jones, Jr.
ACORN
Alfred Paul Kanitz
Nat'l Neighborhood Coalition
P6/(b)(6)
Nan P. Roman
Nat'l Alliance to End Homelessness
Thomas Shellabarger
U.S. Catholic Conference
Charlotte B. Sobel
Center for Community Change
Edward Anh Tran
Center for Community Change
Should you need additional information, please do not hesitate to
contact me or Teri Tompkins at 202/342-0567.
Thanks.
DAY. 202.242.1132
National Housing Law Project
'815 H STREET :TW
SUITE 501
WASHINGTON D.C. 30006
202) 783-5140
NANCY T. SERNSTINE
FAX NO. (202) 347-6765
DIRECTOR OF GOVERNMENT RELATIONS
HN0328
MARY ELLEN HOMBS
EGAL SERVICES
HOMELESSNESS TASK FORCE
SUSAN E. MONDOA
PARALEGAL OFFICE MANAGER
THE BROOKE AMENDMENT SHOULD NOT BE REPEALED
Congress is now considering repeal of the Brooke amendment. That amendment, enacted in 1969,
and revised and refined numerous times since them, is the keystone that holds the federal housing assistance
programs together, as far as people with the lowest incomes are concerned. It guarantees that poor people do
not pay more for public and other assisted housing than they can afford. Without it, the federal housing
assistance programs would loose all relevance for the poorest people in this country, because the rents in assisted
housing would rise catastrophically above their means.
The history of the Brooke Amendment, which is summarized below, demonstrates why it is so vital and
why it must not be repealed. We should learn from that history, not blindly repeat the mistakes of the past.
In- 1969, the National Association of Housing and Redevelopment Officials, in its testimony before the
Senate Subcommittee on Housing and Urban Affairs, brought to Congress' attention the fact that public housing
could no longer continue to serve the lowest income families because of rapidly rising costs. To support that
proposition, NAHRO attached to its prepared statement an article written by Albert A. Walsh, Chairman of
the New York City Housing Authority. In that article, Mr. Walsh reflected on the fiscal crisis faced by his
authority and many others like it. He made the point that public housing, in 1969, faced two choices. It could
continue forward with its existing structure of limited federal subsidies and ever escalating rents to cover
increased operating costs. Or it could switch to a revised federal subsidy system that would keep the rents
affordable and fill the gap with adequate federal operating subsidies.
Mr. Walsh advocated the latter choice, for the following reasons:
If we choose to maintain the status quo, which I might characterize as
selecting the fork in the road that leads to the right, I think that we will find
that we have embarked on a disastrous detour that leads only to the total
/
failure of the public housing program and eventual abandonment of the goals
it has served so well over the past 30 years. Based on our experience in New
York City, public housing dwelling units will soon be priced out of the low-
income market and a social crisis of major proportions will develop as low-
income tenants face the difficult choice of paying a catastrophic proportion
of their income for rent or returning to the siums.
Walsh, Is Public Housing Headed For A Fiscal Crisis, 2
Journal of Housing (Feb. 1969), reprinted in Hearings Before the
Subcommittee on Housing and Urban Affairs of the Senate Committee
on Banking and Currency, 91st Cong., 1st Sess., p. 202 (July 15,
17, 18, 21, 22 and 25, 1969).
We face that same choice today. We can withhold adequate operating subsidies from PHAs and allow
them to raise rents to cover the gap between the level of federal funding and the costs of operations. If we
choose that option, now as in 1969, we will be embarking upon a disastrous detour that leads only to the total
failure of the public housing program. Now, as then, we will face a social crisis of major proportions as the
lowest income tenants will be priced out of public housing by rents that consume catastrophic portions of their
incomes. Unlike 1969, however, they will not have the choice of returning to the slums, because there is no
housing on the private market that can serve them. Instead, now they will become homeless.
In 1969, Congress chose Mr. Walsh's other fork in the road. It enacted the Brooke amendment which
capped public housing tenants' rents at 25% of their incomes and made federal subsidies available to close the
gap between tenants rents and the costs of operations. In introducing the bill that contained his amendment,
Senator Brooke explained that minimum rents needed to pay operating costs were excluding "the very poorest
and most needy of our citizens from participation in public housing projects." 115 CONG. REC. 21973 (Aug.
4, 1969). His bill, by capping rents at 25% of income and providing subsidies to cover the rest of the costs,
would "insure that the Federal housing programs will at last begin to meet the requirements of our most needy
citizens." Id. It would overcome one of the two gross impediments to better housing, "the inability of our
poorest citizens to benefit from the units which are available." Id.
Senator Thomas J. McIntyre, of New Hampshire, co-sponsored the bill with Senator Brooke. When
the bill was introduced, he explained the need for it as follows:
The crisis in public housing is- reaching dramatic proportions. Public housing
authorities across the Nation are no longer able to provide adequate
maintenance and services for tenants and at the same time preserve the low-
rent character of the projects. Even though the Housing Act of 1937, which
established the public housing program, stated that the program would serve
those "families in the lowest income group" local authorities have been forced
to set minimum income requirements and raise rentals in order to meet the
rising costs of maintenance and operation. As a result, more and more of the
poor and very poor are barred from admission to public housing projects.
115 CONG REC. 21973 (Aug. 4, 1969). The bill would correct that problem by providing operating
subsidies and limiting tenants rents to 25% of income. As Senator McIntyre explained:
In this way, minimum rents would no longer be required by the local housing
authority. Tenants with the very lowest incomes would be eligible for
admission to public housing. It would also mean that tenants already living
in public housing will not be spending a disproportionate amount of their
incomes for shelter.
In addition, local housing authorities would receive adequate funds to
maintain and operate the facilities and to provide needed services to tenants.
It would no longer have to resort to the only method available, raising rents,
to guarantee residents a decent place to live.
Id at p. 21974.
When the bill was considered on the floor in September of 1969, Senator Brooke elaborated further
on the need for the change. He stated:
Information available from HUD indicates that there are approximately
180,000 tenants in public housing projects who pay in excess of 25 percent
of their income for such housing. This problem is further accentuated by
inflationary pressures which are increasing operating costs considerably. Many
public housing authorities, unable to obtain additional funds to cover these
increased costs, are looking to public housing tenants for their source of
additional funds. But these public housing tenants are unable, in many cases,
to meet prior payment schedules without allocating a disproportionate share
of their income to housing, and they find it impossible to do so as their rental
payments increase still further.
We believe that no public housing tenant should pay more than 25 percent
of their income for housing; however, we certainly would encourage public
housing authorities to charge considerably less where it is economically
feasible to do so.
115 CONG. REC. 26,721-22 (Sept. 23, 1969).
No provision comparable to the Brooke Amendment had been included in the housing legislation passed
by the House that year. However, in the Conference, the House receded to the Senate on this provision and
included a modified version of the Amendment in the Conference Report. On the floor of the house,
Representative Leonor Sullivan, from St. Louis, led the supporters of this change. In light of the fiscal crisis
faced then by the St. Louis Housing Authority, she forcefully made the case for the modified version of the
amendment, as follows:
One of the most troublesome problems we confronted in the conference had
to do with a Senate amendment dealing with public housing. The Senate had
proposed adding $75 million to the annual subsidy for public housing to
enable housing authorities with a high percentage of very low-income tenants
to reduce rents to a _level of 25 percent of income. The amendment was
well-intentioned, because the poorest people in the projects were often
required to pay the highest percentage of their income for housing -- much
more than welfare families in many jurisdictions could afford unless they
received food stamps to enable them to eat a nearly adequate diet -- and the
food stamps are not yet available in every jurisdiction -- these people had a
"Hobson's. choice" of either purchasing housing and very little else, or
purchasing food and living in unimaginable slums.
It has been the policy of Congress for years that low-income tenants in public
housing not be required to pay more than 20 percent of their income for
shelter. But many housing authorities found it impossible to conform to this
standard, particularly as more and more of their public housing families came
from the lowest income levels -- on welfare. Minimum rents in public housing
in St. Louis and elsewhere eventually rose to a level of 50 percent or more
of their total income. Even with food stamps, the welfare families in our
public housing projects have found it impossible to approach a minimum
standard of living for survival. Yet, despite the high rental levels which the
housing authority had to impose in order to meet operating costs, the
authority has been in serious financial jeopardy, heading toward bankruptcy.
Finally, the authority acceded to community demands to reduce rents to the
25-percent level.
115 Cong Rec 38,778 (Dec. 12, 1969).
The bill agreed upon by the Conferees was passed by both the House and the Senate on December 12,
1969, and signed into law by President Nixon on December 24, 1969. Pub. L. 91-152, 83 Stat. 379.
As in 1969, today we face a choice whether to continue to guarantee our lowest income people access
to public housing or to embark on a course that will fence them out. We can repeal the Brooke Amendment
and, in Senator Brooke's words, "exclude the very poorest and most needy of our citizens from participation
in public housing projects." We can revert to the system, described by Senator Mclntyre, under which the
PHAs were "forced to set minimum income requirements and raise rentals in order to meet the rising costs of
3
maintenance and operation. As a result, more and more of the poor and very poor are barred from admission
to public housing projects." We can go back to the situation described by Representative Sullivan, in which:
"Minimum rents in public housing in St. Louis and elsewhere eventually rose to a level of 50 percent or more
of their total income. Even with food stamps, the welfare families in our public housing projects have found it
impossible to approach the minimum standard of living for survival." We should not, however, repeat that
history.
Another aspect of the history of the Brooke amendment is of particular significance in this time when
reverence for local discretion has reached great heights again. Prior to 1959, there was a federal policy that
public housing rents not exceed 20 percent of tenants' incomes. Conference Report No. 91-740, 1969
USCCAN p. 1584 (Dec. 10, 1969). In 1959, during a prior era of high reverence for state and local
decision-making, Congress enacted the local autonomy amendment to the U.S. Housing Act. That amendment
vested in local public housing agencies "the maximum amount of responsibility in the administration of the low-
rent-housing program, including responsibility for the establishment of rents and eligibility requirements
Housing Act of 1959, § 501, Public Law 86-372, 73 Stat. 654, 680 (Sept. 23, 1959).
It was that local autonomy amendment that gave PHAs the freedom to raise tenants' rents when they
later encountered operating cost increases that out-paced the tenants' income increases. But as Representative
Florence P. Dwyer, Republican from New Jersey, explained when the Brooke Amendment was being considered
10 years later:
Ten years ago, in 1959, when we revised that program [public housing] in
the name of local autonomy, we had no intention of allowing local public
housing authorities to charge higher and higher rents to the poor people as
a means of avoiding bankruptcy. Yet, the much higher costs of today are no
longer able to be financed out of rental income and in many cases public
housing rents now greatly exceed tenants'. ability to pay.
115 Cong Rec 38,778 (Dec. 12, 1969).
As it was in 1959, it would be a mistake now to grant PHAs unrestrained freedom to raise rents in the
name of deregulation or devolution. The only way the poorest among us are to be assured access to federally
assisted housing is to limit rents to a fair percentage of their incomes. The Brooke Amendment does that and
thus should not be repealed.
The subsequent history of the Brooke Amendment also has a lesson for today. In 1974, when the
entire U.S. Housing Act was being revised, concerns were raised that under the Brooke Amendment, some
tenants were paying too little for rent. The committees considered various ways to get at that problem, and
came up with a minimum rent set at 10 percent of gross income. They rejected other alternative minimum
rents, set at flat levels or at 3 certain percent of operating costs. The reasons for rejecting those alternatives
were explained in the House Report on the 1974 Act, as follows:
The bill requires each tenant in public housing to pay a minimum rent. This
minimum rent would be 10 percent of the gross income of the tenant. The
committee considered other ways of formulating a minimum rent, most
notably as a percentage of unit operating costs. The committee rejected this
approach as having too divergent an impact nationwide since operating costs
vary in different projects and the lack of any relationship between operating
costs and ability to pay would cause undue hardship to many tenants.
H.R. REP. No. 93-1114, 93d Cong., 2d Sess. (June 17, 1994), 373-4.
In that same Report, Representative Moakley, from Massachusetts, in Supplemental views, explained
even more clearly the inequities of minimum rents that are unrelated to the tenant's ability to pay:
4
The concept of a minimum rent for occupants of low-rent housing is a
regressive concept with which I cannot concur.
In view of pressure generated by numbers of the Committee for such a
provision, I believe the approach of establishing a rent based upon 10% of
gross income is far more equitable than other formulas that had been
suggested. Specifically, establishing a rent based upon unit operating costs,
which had been considered by the Committee, lacked any relationship to
ability to pay and would have placed an undue burden on most tenants.
It is inconceivable to me that we would look to the residents of public
housing, and to the poorest residents at that, for the additional revenue
needed, rather than to the subsidy system already mandated by Congress.
Id. at 554-5.
As in 1974, there is now much talk about a minimum rent in public housing. And those proposals are
for flat minimums unrelated to the tenant's-income, such as $100 per unit or $25 per bedroom. They produce
the same inequity that the alternatives considered in 1974 created, i.e., they are not related to the tenant's
ability to pay and thus impose the harshest burden on those whose incomes are at the bottom. Those kinds
of minimums were rejected in 1974, for good reasons, and they should be rejected today, for the same reasons.
The 10 percent of gross income minimum enacted in 1974, and still in the law today, should be retained, not
replaced by an inequitable alternative.
Another question being raised today is whether the percentage the tenants pay should be raised from
30% to some higher figure, such as 35%. Again, history is worth something on this question. Up until 1959,
the federal standard was 20 percent. Conference Report No. 91-740, 1969 USCCAN p. 1584 (Dec. 10,
1969). In 1969, when Brooke was enacted, the percentage became 25 percent. In 1979, the Congress
granted HUD the authority to raise the percentage as high as 30 percent for families with incomes above 50
percent of the median income in the area. Pub. L. 96-153, §202(a), 93 Stat. 1106 (Dec. 21, 1979). That
Act, however, grandfathered all tenants residing in public housing before the effective date of the change at the
25 percent level. Id. In 1981, the ratio was raised to 30%, and it was transformed into a mandatory rent for
everyone, instead of a maximum that could not be exceeded. Pub. L. 97-35, 322(a), 95 Stat. 400 (Aug.
13, 1981). That is where we stand today, with the exception of the voucher program, under which the tenants
pay 30 percent of income plus whatever the landlord charges for rent above the PHA's payment standard.
Often that works out to 40 and 50 percent of income for voucher holders.
This continual increase in the amount tenants pay, from 20% in 1959, 25% in '69, 30% for some
in '79, and for all in '81, 30% plus for voucher holders in '84 to 35% or more for all in '95 is regressive
injustice, not progressive equity. Someone has to draw the line sometime, or the federal housing programs will
go the way that Albert Walsh predicted in 1969. They will fail their intended mission of making decent housing
available to people with low incomes. Now is the time to stop this insanity.
5
21972
CONGRESSIONAL RECORD
August 4, 1969
winter whent was out by 12 cents a bushel
posal of materials during the period January
(The remarks of Mr. BROOKE when he In-
under the grain agreement minimum. These
1 through June 30, 1969 (with an accom-
troduced the bill appear later in the RECORD
cuts affected exports from East Coast and
panying report); to the Committee on In-
under the appropriate heading.)
Gulf ports.
terior and Insular Affairs.
By Mr. STENNIS:
These decisions followed a meeting in
THIRD PREFERENCE AND SIXTH PREFERENCE
S. 2762. A bill to amend the Civil Rights
Washington earlier this month of ministers
CLASSIFICATIONS FOR CERTAIN ALIENS
Act of 1964 to assure a more uniform en-
from grain-exporting countries at which the
forcement of title VI thereof; to the Com-
conclusion was reached that some price ad-
A letter from the Commissioner, Immigra-
mittee on the Judiciary.
justments had to be made at a time of
tion and Naturalization Service, Department
(The remarks of Mr. STENNIS when he in-
wheat surpluses.
of Justice, transmitting, pursuant to law, re-
troduced the bill appear later in the RECORD
A Common Market spokesman said the
ports relating to third preference and sixth
under the appropriate heading.)
U.S. action could have grave consequences
preference classifications for certain aliens
By Mr. MUNDT (by request)
for the future application of the Kennedy
(with accompanying papers): to the Com-
S. 2763. A bill to allow the purchase of Ad-
Round of tariff cuts.
mittee on the Judiciary.
ditional systems and equipment over and
France, the market's principal exporter of
SUSPENSION OF DEPORTATION OF CERTAIN
above the statutory price limitation; to the
grains, has been accused by the U.S. of
ALIENS
Committee on Government Operations.
undercutting the grain minimum price in
Two letters from the Commissioner, Immi-
By Mr. MAGNUSON:
sales to Thailand, Japan, and the United
gration and Naturalization Service, Depart-
S. 2764. A bill to make it unlawful to in-
Arab Republic.
ment of Justice, transmitting, pursuant to
stall nonsafety glazing material in sliding
law, copies of orders suspending deportation
glass doors and other high risk areas of resi-
The PRESIDENT pro tempore. Is
of certain aliens, together with a statement
dential, public, and commercial buildings in
there any further morning business?
of the facts and pertinent provisions of law
the District of Columbia to protect the health
Mr. BYRD of West Virginia. Mr.
pertaining to each alien and the reasons for
and safety of the public, and to direct the
President, I suggest the absence of a
ordering such suspension (with accompany-
Director of the Department of Health to es-
quorum.
ing papers); to the Committee on the Judi-
tablish and promulgate standards for safety
The PRESIDENT pro tempore. The
clary.
glazing material and its application; to the
Committee on the District of Columbia.
clerk will call the roll.
ADMISSION INTO THE UNITED STATES OF
CERTAIN DEFECTOR ALIENS
(The remarks of Mr. MAGNUSON when he
The bill clerk proceeded to call the
introduced the bill appear later in the REC-
roll.
A letter from the Commissioner, Immigra-
ORD under the appropriate heading.)
Mr. BYRD of West Virginia. Mr.
tion and Naturalization Service, Department
By Mr. MAGNUSON (by request)
President, I ask unanimous consent that
of Justice, transmitting. pursuant to law,
S. 2765. A bill to consent to amendments
the order for the quorum call be
copies of orders entered granting admission
to the Pacific Marine Fisheries Compact; to
into the United States of certain defector
rescinded.
the Committee on the Judiciary.
aliens (with accompanying papers); to the
The PRESIDENT pro tempore. With-
By Mr. JACKSON:
Committee on the Judiciary.
S. 2766. A bill for the rellef of Guillermo
out objection, it is SO ordered.
TEMPORARY ADMISSION INTO THE UNITED
Blonquis (William Bloomquist); to the Com-
STATES OF CERTAIN ALIENS
mittee on the Judiciary.
A letter from the Commissioner, Immigrn-
By Mr. GURNEY:
EXECUTIVE COMMUNICATIONS. ETC.
tion and Naturalization Service, Department
S. 2767. A bill to amend the Federal Water
The PRESIDENT pro tempore laid
of Justice, transmitting, pursuant to law,
Pollution Control Act, as amended; to the
before the Senate the following letters,
copies of orders entered granting temporary
Committee on Public Works.
admission into the United States of certain
(The remarks of Mr. GURNEY when he in-
which were referred as indicated:
troduced the bill appear later in the RECORD
REPORT OF DIRECTOR OF SELECTIVE SERVICE
aliens (with accompanying papers): to the
Committee on the Judiciary.
under an appropriate heading.)
A letter from the Director, Selective Serv-
By Mr. TYDINGS:
ice System, transmitting, pursuant to law,
REPORT ON ACTIVITIES IN CERTAIN COUNTRIES
S. 2768. A bill to amend the Atomic Energy
a report on the operations of Selective Serv-
RELATING TO APPLICATIONS FOR CONDITIONAL
Act of 1954 in order to promote the preser-
ice during the period from July 1, 1968, to
ENTRY
vation of environmental quality: to the Joint
December 31, 1968 (with an accompanying
A letter from the Commissioner, U.S. De-
Committee on Atomic Energy.
report): to the Committee on Armed Services.
partment of Justice, Immigration and Nat-
(The remarks of Mr. TYDINGS when he in-
REPORT OF THE SECRETARY OF THE AIR FORCE
uralization Service, pursuant to law report-
troduced the bill appear later in the RECORD
A letter from the Secretary of the Air
ing on activities in certain countries relat-
under the appropriate heading.)
Force, transmitting, pursuant to law, a re-
ing to applications for conditional entry. for
port entitled "Semi-Annual Experimental,
the period January 1, 1969 through June 30,
Development, Test and Research Procure-
1969; to the Committee on the Judiciary.
ADDITIONAL COSPONSORS OF BILLS
ment Action Report," for the period Janu-
S. 2073
ary 1, 1969, through June 30, 1969 (with an
accompanying report); to the Committee
PETITIONS AND MEMORIALS
Mr. DIRKSEN. Mr. President, I ask
on Armed Services.
Petitions, etc., were laid before the
unanimous consent that, at the next
REPORT OF EXPORT-IMPORT BANK OF THE
Senate, or presented, and referred as in-
printing, the name of the Senator from
UNITED STATES
dicated:
Kansas (Mr. PEARSON) be added as n co-
A letter from the Secretary, Export-Import
sponsor of S. 2073, to prohibit the use of
Bank of the United States, transmitting.
By the PRESIDENT pro tempore:
A letter in the nature of a petition, from
interstate facilities. including the mails,
pursuant to law. a report on actions taken
Allan Feinblum, New York, N.Y., praying for
for the transportation of certain mate-
by the Bank during the quarter ended June
the issuance of certain IBM cards; to the
rials to minors.
30, 1969 (with an accompanying report):
Committee on Post Office and Civil Service.
to the Committee on Banking and Cur-
The PRESIDENT pro tempore. With-
A resolution adopted by the Board of
rency.
out objection, It is so ordered.
Chosen Freeholders, Union County, Eliza-
REPORTS OF THE COMPTROLLER GENERAL
S. 2108
beth, N.J., supporting the further extension
A letter from the Comptroller General of
of the Interstate System of Highways; to the
Mr. BYRD of West Virginia. Mr. Presi-
the United States, transmitting. pursuant to
Committee on Public Works.
dent, on behalf of the Senator from
law, n report on an examination of financial
Maryland (Mr. TYDINGS), I ask unani-
statements of the U.S. Government Printing
mous consent that, at the next printing,
Office, fiscal year 1968, dated August 4,
BILLS INTRODUCED
the names of the Senator from Mas-
1969 (with an accompanying report): to the
Bills were introduced, read the first
sachusetts (Mr. BROOKE), and the Sena-
Committee on Government Operations.
A letter from the Comptroller General of
time and, by unanimous consent, the
ator from Virginia (Mr. SPONG), be added
the United States, transmitting. pursuant to
second time, and referred as follows:
as cosponsors of S. 2108, to create a Na-
law. a report on silver sales limited to small
tional Center for Population and Family
business concerns, Treasury Department,
By Mr. BROOKE (for himself and Mr.
dated August 4, 1969 (with an accompanying
McINTYRE)
Planning and other purposes.
S. 2761. A bill to amend the United States
The PRESIDENT pro tempore. With-
report): 10 the Committee on Government
Operations.
Housing Act of 1937 to provide additional
out objection, it is so ordered.
rental assistance payments to enable fam-
S. 2315
REPORT OF BUREAU OF LAND MANAGEMENT
illes of very low income to afford to live in
A letter from the Acting Director, Bureau
low-rent housing projects and to improve
Mr. BYRD of West Virginia. Mr. Presi-
of Land Management, Department of the
operating and maintenance services in such
dent, on behalf of the Senator from
Interior, transmitting, pursuant to law, a
projects; to the Committee on Banking and
Washington (Mr. JACKSON), I ask unani-
report of negotiated sales contracts for dis-
Currency.
mous consent that, at the next printing,
1969
August 4, 1969
CONGRESSIONAL RECORD SENATE
21973
he in-
RECORD
the name of the junior Senator from
better housing. But two gross impedi-
Mr. MCINTYRE, was received, read twice
Arizona (Mr. GOLDWATER) be added as a
ments still remain-the lack of sufficient
by its title, referred to the Committee on
Rights
cosponsor of S. 2315, to restore the
standard housing to meet the needs of
Banking and Currency, and ordered to
en-
golden eagle program to the Land and
all our people, and the inability of our
be printed in the RECORD, as follows:
Com-
Water Conservation Fund Act.
poorest citizens to benefit from the units
S. 2701
The PRESIDENT pro tempore. With-
which are available.
Be it enacted by the Senate and House of
he in-
out objection, it is so ordered.
The measure which I introduce to-
Representatives of the United States of
ECORD
S. 2470
day-on behalf of myself and Mr.
America in Congress assembled, That the
Mr. SCOTT. Mr. President, I ask unan-
MCINTYRE-would help to overcome the
United States Housing Act of 1937 is amended
second of these two obstructions. Basi-
imous consent that, at the next printing,
by redesignating section 24 as section 25,
of ad-
and
the names of the senior Senator from
cally, the bill would make it possible for
and by adding after section 23 the following
California (Mr. MURPHY), the junior
the Federal Government to provide rental
new section:
the
Senator from California (Mr. CRANSTON),
assistance payments to public hous-
"ADDITIONAL RENTAL ASSISTANCE
the Senator from Maryland (Mr. MA-
ing agencies for the purpose of making
"SEC. 24. (a) In order to enable public
in-
up the difference between the actual cost
housing agencies to provide housing within
iding
THIAS), and the Senator from Utah (Mr.
of the unit and one-fourth of the income
the means of families of very low income and
resi-
Moss) be added as cosponsors of S. 2470,
of the tenant. Assistance would be in the
to provide improved operating and mainte-
gs in
to amend the Food Stamp Act of 1964
nance services, the Secretary may make, and
ealth
to authorize elderly persons to exchange
form of annual payments by the Secre-
the
tary of Housing and Urban Develop-
contract to make, annual rental assistance
food stamps under certain circumstances
payments to public housing ngencies with
ment to public housing agencies pur-
for meals prepared and served by private
respect to any low-rent housing projects.
suant to contracts entered into with the
nonprofit organizations, and for other
"(b) The amount of the annual payment
10
local agencies. It would enable families,
with respect to any dwelling unit in n low-
purposes.
regardless of how low their incomes may
rent housing project shall not exceed the
he
The PRESIDENT pro tempore. With-
be, to afford decent housing at a rea-
amount by which the rental for such unit
out objection, it is so ordered.
sonable cost; the "one-fourth of in-
exceeds one-fourth of the tenant's income.
S. 2644
come" figure is exactly the same as the
"(c) There are authorized to be appropri-
Mr. BYRD of West Virginia. Mr. Pres-
rent-to-income ratio used in HUD's
ated such sums as may be necessary to carry
ident, on behalf of the Senator from
out the provisions of this section, including
to
other subsidized rental programs.
such sums as may be necessary to make the
Maryland (Mr. TYDINGS), I ask unani-
Let me illustrate how the program
rental assistance payments under contracts
mous consent that, at the next printing,
would work. At the present time, the na-
entered into under this section. The aggre-
the name of the Senator from Ohio
tionwide average operating cost per
gate amount of the contracts to make such
Com-
(Mr. YOUNG) be added as a cosponsor of
housing unit is about $50 per month, or
payments shall not exceed amounts ap-
S. 2644, to amend the Legislative Reorga-
$600 per year. Thus $50 is the minimum
proved in appropriation Acts."
nization Act of 1946.
ater
monthly rent which a developer or hous-
Mr. McINTYRE. Mr. President, the
the
The PRESIDENT pro tempore. With-
ing agency would have to charge each
crisis in public housing is reaching dra-
out objection, it is SO ordered.
tenant just in order to break even. But
matic proportions. Public housing au-
m-
S. 2674
based on Federal calculations of a reason-
thorities across the Nation are no longer
Mr. BYRD of West Virginia. Mr. Presi-
able proportion of annual income devoted
able to provide adequate maintenance
dent, on behalf of the Senator from
to housing needs, this simple minimum
and services for tenants and at the
Hawaii (Mr. INOUYE), I ask unanimous
figure automatically excludes the many
ergy
same time preserve the low-rent char-
ser-
consent that, at the next printing, the
millions of families with incomes below
acter of the projects. Even though
names of the Senator from Montana (Mr.
$2,400 per year. One undesirable alter-
the Housing Act of 1937, which es-
METCALF), the Senator from Missouri
native, which has been used to some de-
tablished the public housing program,
In-
(Mr. EAGLETON), the Senator from Ne-
gree in the past, is to charge those ten-
stated that the program would serve
vada (Mr. BIBLE), the Senator from
ants who can afford to pay more a higher
those "familles in the lowest income
Washington (Mr. JACKSON), the Senator
rent for the same kind of unit in order
group" local authorities have been forced
from Connecticut (Mr. DODD), and the
to compensate for the low-income fami-
to set minimum income requirements and
Senator from South Carolina (Mr. THUR-
lies who cannot afford to bear their fair
raise rentals in order to meet the rising
LS
MOND), be added as cosponsors of S. 2674,
share of the cost. The other alternative,
costs of maintenance and operation. As
to amend title 37, United States Code, to
which is even less desirable, has been to
a result, more and more of the poor and
provide for the procurement and reten-
exclude the very poorest and most needy
very poor are barred from admission to
tion of judge advocates and law special-
of our citizens from participation in pub-
public housing projects.
ists officers from the Armed Forces.
lic housing projects.
In some cities operating costs on a
The PRESIDENT pro tempore. With-
The bill which I introduce today is,
co-
three-bedroom apartment, for example,
of
out objection, it is so ordered.
I believe, a far better alternative than
are $70 per month. If a family were to
either of the two approaches outlined
spend only 25 percent of its income in
S. 2689
te-
above. It would simply permit the Fed-
order to meet that rental figure, it would
Mr. BYRD of West Virginia. Mr. Pres-
eral Government to pay the difference
have to earn $3,400 per year. The aver-
ident, on behalf of the Senator from Ha-
between what a family can afford and
th-
age annual income of public housing ten-
wall (Mr. INOUYE), I ask unanimous con-
what the unit actually costs. It would
ants is $2,709.
sent that, at the next printing, the
distribute the burden of the supplement
Since the Federal contribution to pub-
names of the Senator from Connecticut
evenly. And it would insure that Federal
lic housing pays only debt service and
si-
(Mr. DODD) and the Senator from New
housing programs will at last begin to
amortization charges, local authorities
Jersey (Mr. WILLIAMS) be added as co-
meet the requirements of our most needy
are required to charge rentals which will
hi-
sponsors of S. 2689, to amend the In-
citizens.
produce a project income equal to proj-
ternal Revenue Code of 1954 to provide
Mr. President, I send this bill to the
ect operational costs. From the begin-
the same tax exemption for servicemen
desk and ask unanimous consent that
ning, this meant that the very poor, those
a-
in and around Korea as is presently pro-
it be printed at this point in the RECORD.
who could not afford their portion of the
vided for those in Vletnam.
The PRESIDENT pro tempore. The
operating expenses of the project, could
a-
The PRESIDENT pro tempore. With-
bill will be received and appropriately
not be admitted. According to the studies
ly
out objection, it is so ordered.
referred; and, without objection, the bill
of the President's Commission on Urban
will be printed in the RECORD.
Problems, "This group seems to amount
S. 2761-INTRODUCTION OF A BILL
The bill (S. 2761) to amend the United
to at least 8 percent and possibly as much
TO PROVIDE ADDITIONAL RENTAL
States Housing Act of 1937 to provide
as 10 percent of the urban population."
ASSISTANCE FOR LOW-INCOME
additional rental assistance payments to
It is this group which is forced to find
FAMILIES
enable families of very low income to
housing in the most substandard, dilapi-
afford to live in low-rent housing proj-
dated, and overcrowded dwellings.
Mr. BROOKE. Mr. President, in just a
ects and to improve operating and main-
The Federal Government has the re-
few-short-years we have made significant
E.
tenance services In such projects, Intro-
sponalbility for assuring that all Amort-
strides in removing the social barriers to
duced by Mr. BROOKE, for himself and
cans have a docent place to live. That
21974
CONGRESSIONAL RECORD SENATE
August 4, 1969
pledge is two decades old. But two de-
will Increase. In 1966, an estimated 1.1
would be remiss in our duties to hesitate
cades later there is no Federal program
million sliding glass doors were being
any longer in passing legislation for the
to provide housing for our poorest citi-
installed in homes and office buildings
District of Columbia, and it is for these
zens.
each year and by 1970 this annual volume
The bill being introduced today by
reasons that I am proposing this legisla-
was expected to reach 1.4 million units.
tion today.
Senator BROOKE and myself would help
The free operation of our economic sys-
to remedy that situation. It would set a
The PRESIDENT pro tempore. The bill
tem has not been adequate to compel the
will be received and appropriately re-
standard, used in other housing pro-
use of safety glass in the home for a
ferred.
grams, that tenants pay 25 percent of
number of reasons:
The bill (S. 2764) to make it unlawful
their income as rent in public housing.
First, the demands for lower costs in
to install nonsafety glazing material in
The difference between the rent paid by
housing are driving contractors to cut
the tenant under this formula and the
sliding alass doors and other high-risk
cost on the materials they use to in-
areas of residential, public, and commer-
rental value of the unit would be paid by
crease their profits; second, consider-
cial buildings in the District of Columbia
the Federal Government. The rental
ing the number of people who today live
to protect the health and safety of the
value of the unit would be propor-
in large apartment complexes, who pur-
public, and to direct the Director of the
tionate to the operational cost of the
chase homes already built, or who buy
Department of Health to establish and
project.
In this way, minimum rents would no
homes in subdivisions developed by large
promulgate standards for safety glazing
homebuilders, the consumer seldom has
longer be required by the local housing
material and its application, introduced
a choice in the material that is used in
authority. Tenants with the very lowest
by Mr. MAGNUSON, was received, read
incomes would be eligible for admission
the construction of his residence; third,
twice by its title, and referred to the
at present, replacement costs for safety
Committee on the District of Columbia.
to public housing. It would also mean
glass are substantially higher than for
that tenants already living in public
housing will not be spending a dispro-
ordinary sheet-annealed-glass al-
though original installation of a sliding
S. 2767-INTRODUCTION OF THE
portionate amount of their incomes for
shelter.
glass door with tempered glass-one
WATER QUALITY FINANCIAL AS-
In addition, local housing authorities
kind of safety glass-is only about $20
SISTANCE ACT OF 1969
would receive adequate funds to main-
more than a door with regular annealed
Mr. GURNEY. Mr. President, today I
tain and operate the facilities and to
glass. I might point out that the industry
am introducing a bill to assure that the
provide needed services to tenants. It
has acted to reduce these costs by stand-
maximum amount of money possible is
would no longer have to resort to the
ardizing the sizes of glass used in sliding
available for the building of waste treat-
only method available, raising rents, to
doors and storm doors and so we can ex-
ment facilities. We are currently faced
guarantee residents a decent place to
pect this difference in cost to decline in
with a serious problem in financing the
live.
the future. And further, the cost differ-
construction of needed waste treatment
entiation may even become less of a
works. With our present budgetary situ-
factor with the increase in the use of
ation, it seems unlikely that the appro-
S. 2764-INTRODUCTION OF SAFETY
tempered glass which governmental reg-
priation for the forthcoming fiscal year
GLAZING BILL FOR THE DISTRICT
ulations at all levels can bring about:
and the year following will equal the
OF COLUMBIA
fourth, the door manufacturer who sells
authorization for funds to build these
a storm or sliding glass door with only
sewage treatment works.
Mr. MAGNUSON. Mr. President. much
annealed glass in it has a decided eco-
has been said but little has been done
However. we cannot afford to lose any
nomic advantage over the conscientious
about the large number of disfiguring
more time in controlling the pollution
manufacturer who will only Install safety
and fatal Injuries resulting from persons
of our Nation's waters. The proverbial
glass.
walking or falling into transparent glass
"ounce of prevention" certainly applies
The sad aspect of the problem con-
here. Reasonable expenditures now to
doors and panels in residential housing
fronting us is that technology has pro-
and public buildings. The American con-
halt further pollution of our waterways
vided us with the solution which will
sumer was first apprised of the problem
above and below ground may well pre-
substantially reduce, if not completely
clude the enormous costs of rehabilita-
posed by annealed glass used in sliding
eliminate, the injury hazard as it exists
tion of such systems later.
patio doors, storm doors, adjacent panels,
and yet this know-how is not being fully
and glass room partitions 9 years ago
Intense river pollution already threat-
employed. There presently are three
when a west coast medical journal re-
ens underground aquifers, as is now the
types of safety glass that can eliminate
ported $40,000 insurance claims per year
case in the Hudson River Valley. As any-
this problem: These are tempered, lami-
by victims of glass injuries. In 1966, after
one can appreciate who has stood on the
nated, and wire glass. I have pointed out
further study by representatives from
shores of the Potomac on a summer's
these three types of safety glass primar-
the Division of Accident Prevention of
day in a freshening breeze, the cost to
ily to demonstrate to you that present
the Public Health Service and the Na-
sweeten the stench of this river has now
technology is capable of eliminating the
tional Safety Council, nided by door and
been estimated as high as $500 million.
problem. However, the proposed legisla-
glass manufacturers and code officials,
While it is technologically possible to
tion which I introduce does not ham-
estimates of glass injuries reached 100,-
redeem these sources of our water sup-
string the ingenuity of our modern in-
000. And Just last January, attention was
ply, the costs remain prohibitive. For
dustry by requiring a specific type of
again focused on the problem by the
this reason, it is imperative that we act
safety glass, but rather requires that
National Commission on Public Safety at
as swiftly as possible to prevent further
whatever kind of glazing material is
pollution.
public hearings held here in Washington.
used, it shall meet certain impact and
Testimony was heard from the parents of
The bill I am introducing today is de-
breakage tests designed to eliminate the
children who were killed or disfigured by
signed to meet that need to the best
hazards that I have mentioned.
injuries when they inadvertently plum-
extent possible. It provides that during
Although this problem probably could
meted through non-safety glass used in
fiscal year 1970 the amount of the funds
be dealt with more effectively at the na-
various areas of family residences. The
for waste treatment works that has been
tional level, I think it is best to wait for
great danger of annealed glass is that
authorized, but unappropriated will be
the report and recommendations of the
when it breaks, it does so into extremely
authorized under a contract program.
National Commission on Product Safety
sharp. jagged, spear-like edges which are
The Secretary of the Interior would be
before taking Federal action. Neverthe-
capable of inflicting deep wounds into
authorized to enter into long term. not
less, effective action can be taken at the
the victim, severing vital arteries, nerves,
to exceed 30 years. contracts with a State
local level, and such stopgap legislation
and muscles. One mother related at the
or local governmental unit to pay in in-
will go far to reduce the injuries in the
Commission hearings how her 9-year-old
stallments the Federal share of the costs
District of Columbia.
daughter's jugular vein was severed when
of constructing such works. The Federal
she walked through a glass room divider
It is unfortunate that the District,
share would be determined in the same
and in only minutes bled to death.
which is seeking to become a model city,
manner as the Federal share is determ-
must follow, rather than lead, such States
The frightening aspect of this problem
ined for grants.
13 that unless legislative action Is taken,
as New Jersey, Washington, Maryland,
This bill would provide a mechanism
there is reason to believe that the hazard
North Carolina, and California in pass-
ing similar legislation. Therefore, we
to produce the necessary Federal financ-
ing to help meet water quality standards.
26720
CONGRESSIONAL RECORD SENATE
September 23, 1969
Se
Just as was said to the junior Senator
be
The PRESIDING OFFICER. The ques-
present housing shortage, and the im-
possibility of people with incomes of less
from New York (Mr. GOODELL), I am
fam
tion is on agreeing to the amendment, as
M
than $10,000 a year to be able to get
perfectly willing to take this amendment,
modified. of the Senator from Texas.
und
housing, that this will make it worse,
with the understanding that between
The amendment was agreed to.
thos
Mr. JAVITS. Mr President, I send to
when we go up to providing housing in
now and the time we have the confer-
tent
the desk an amendment and ask that it
the area of $40,000 a home.
ence, we will get the best facts and in-
sista
After all. FHA insurance is an element
formation on it that we can.
be stated.
The PRESIDING OFFICER. The
of the Government subsidy and the con-
Mr. JAVITS. That is entirely satisfac-
M
sequences on the typical homebuyer with
tory with me. and as the Senator from
ator
amendment will be stated.
Wisconsin (Mr. PROXMIRE) will un-
ano
The bill clerk read. as follows:
a small, modest. or middle income will
If
be adverse. Thus, for that reason, al-
doubtedly be a conferee-
On page 2, line 21, strike out "Lower down-
though I certainly will not press my
Mr. SPARKMAN. He will be.
cent
payments for".
which
argument against the amendment, I
Mr. JAVITS. I understand it may very
On page 2, line 23, after "(a)" insert "(1)".
On page 2. after line 25, insert a new para-
must say that I must oppose the amend-
well go out, but at least take a good
$120
ment.
look at it.
ing
graph as follows:
the
(12) Section 203(b) (2) of such Act is
Mr. JAVITS. Let me point out to the
Mr. SPARKMAN. We will.
Senator that we are not going quite so
Mr. TOWER. Mr. President. I concur
M
amended by striking out '$30,000'. '$32,500",
and '$37.500' and inserting in lieu thereof
high as he says. We are trying to make
in the statement of the Senator from
M
'832.500'. '$35,000', and '$40,000'. respectively."
since
a marginal adjustment. We are going
Alabama.
Mr. JAVITS. Mr. President, if I may
from $30,000 to $32.500. not from $30,000
The PRESIDING OFFICER. The
nual
be recognized
to $40,000, and going from $37,500 to
question is on agreeing to the amend-
tion
ment of the Senator from New York (Mr.
be al
The PRESIDING OFFICER. The Sen-
$40,000. But it is a marginal adjustment.
atior
ator from New York.
In answer to the Senator's argument.
JAVITS).
The amendment was agreed to.
payr
Mr. JAVITS. The purpose of the
let me point out that we do not help the
amendment is to raise the ceilings on
$10,000 fellow by depriving people who
Mr. SPARKMAN. Mr. President. may
be m
I
conventional mortgages for, generally
cannot afford to buy a more expensive
we have third reading?
speaking. owner-occupied one-, two-, and
The PRESIDING OFFICER. The bill
Mas:
house. That goes for 80 percent of home
is open to further amendment. If there
rent:
three-family houses. That is in the inter-
buyers. We have to make up for what
ests of family houses. It is the traditional
is a bad situation.
be no further amendment to be
not i
butic
FHA mortgage pattern.
As to mortgage interest rates. one of
offered—
act.
This amendment is necessary in order
the ways in which we can do that is by
Mr. GOODELL. Mr. President—
to deal with the problem of high costs
being somewhat more liberal on the
The PRESIDING OFFICER. The Sen-
M1
be in
in areas around the great cities, recog-
guarantee side, so that instead of taking
ator from New York.
Mr
nizing fully that the committee has ende-
the National Homebuilders' figure which.
Mr. GOODELL. I take this time to
ficati
avored to do so, by its formula. passed
as the Senator says, is 40, I am trying
engage
in 1967. which has just been modified to
to do something which is marginal to
Mr. SPARKMAN. Mr. President. will
point
facto
some extent by the amendment of my
care for the particularly high costs
the Senator yield?
ticula
colleague from New York (Mr. GOODELL),
areas, leaving the generality of the
Mr. GOODELL I yield.
than
for public housing, and so forth.
mortgages to the formula itself which
Mr. SPARKMAN. Does the Senator
Mr
We are advised by those who do the
the committee devised.
propose to offer an amendment?
appre
actual building of houses in and around
Mr. PROXMIRE. The Senator's
Mr. GOODELL No.
of tl
our major cities that the application of
amendment provides for striking out
Mr. SPARKMAN I wonder if we might
SPARE
the formula alone will not be adequate;
$30,000, $32,500 and $37,500. and insert-
have third reading.
bill, S
that there is a very strong case for en-
ing in lieu thereof $32,500. $35,000 and
Mr. MILLER. Mr. President, will the
tions
couragement of this type of construction
$40,000 respectively. I would therefore
Senator yield?
cifica
and that we must deal with the increased
argue that there is a limit placed on the
Mr. SPARKMAN. I yield.
29.
costs which are being faced.
housing. As we know. we have the worst
Mr. MILLER. I would appreciate it if
Mr
I have read the minority views of the
housing shortage in this country for the
the Senator would withhold his request
Sena
Senator from Texas (Mr. TOWER) with
past 30 years. Under these circum-
for third reading for just a few minutes.
sectic
the greatest interest. I agree with him
stances, if a fairly affluent family is able
I may have an amendment.
provi
that we should not go "hog wild" on this
to get financing under these circum-
Mr. SPARKMAN. Certainly.
that
thing and necessarily keep up with costs.
stances, for a $40,000 home, it will be
The PRESIDING OFFICER. The Sen-
Mr
It is like the tax collector. We have to cut
that much harder for the lower income
ator from New York.
Mr.
without cutting the bone and, at the
families to buy a house because of the
Mr. GOODELL Mr. President, I take
make
same time, do all we can to deal with
more limited supply of housing generally.
the situation.
Mr. JAVITS. But the $40,000 home is
this time to engage in a brief colloquy
tional
with the Senator from Massachusetts
the r.
Mr. TOWER. Mr. President, will the
a multifamily home. This limit is not
(Mr. BROOKE) with reference to a provi-
may I
Senator from New York yield at that
to one-family homes. That goes only to
sion in this bill which he offered. I be-
sons :
point?
the $32,500 home. Secondly, the tradi-
Mr. JAVITS. I yield.
tion in this country is that if more houses
lieve we should make absolutely clear its
we W
are made available, more houses for low-
legislative intent. In order for families o!
consu
Mr. TOWER. As I said awhile ago, in
er income groups are made available;
very low income to afford public housing
of the
discussing the amendment of the distin-
We
and the pressure against the ceiling.
rentals of more than 25 percent of their
guished junior Senator from New York
income. annual rental assistance pay-
fectly
-Mr. GOODELL), the experience is that
when there is a ceiling. is useful in mak-
ing available a greater stock of housing.
ments will be made to the public hous-
Mr.
very often the ceilings we put in the bill
ing agencies. In addition, this provision
was e
tend to become floors for the minimum
Mr. SPARKMAN. Mr. President, will
enables housing authorities to lower
have
cost of construction. I hope that some
the Senator yield?
Mr. JAVITS. I yield.
rents for tenants to 25 percent of income.
servic
time in the future we can be led to slow
Then. the Government pays the differ-
Mr.
down this escalating process.
Mr. SPARKMAN. I believe it has al-
ence between 25 percent of income. the
The 1
I intend to support the amendment of
ready been stated by the Senator from
the Senator from New York.
Wisconsin, and I believe by the Senator
actual operating cost for the unit under
tional
from Texas, that we considered this mat-
existing law. housing authorities now re-
am su
Mr. JAVITS. I thank my colleague
ter in the committee, and the committee
ceive subsidies of $120 per family for the
Senat
from Texas. I hope very much that the
voted against it. However, just as I said.
disabled, handicapped, and very low in-
Mr.
Senator in charge of the bill will take the
and just as the Senator from Texas said
come family.
quiry i
amendment, as he has other amend-
I would like to ask the Senator from
cerned
ments. and submit it to conference.
to the amendment of the junior Senator
Mr. PROXMIRE. Mr. President, I
from New York (Mr. GOODELL) a little
Massachusetts this question: If an att-
bill. N
while ago, we realize there is a real prob-
thority does not charge over 25 percent
make
hesitate to disagree with the Senator
of the tenant's income for rent-which 1
been t
from New York, but I must say that we
lem in those areas. There are some ques-
understand would disqualify it from the
Mr.
did go over the proposal in committee
tions that we ought to look into to see
how this procedure works and to the
Brooke assistance provision-will that
comply
and it was rejected. after considerable
discussion. I feel strongly, with the
extent it will give relief.
authority in that rental situation still
1969
September 23, 1969
CONGRESSIONAL RECORD SENATE
26721
or Senator
be eligible for the $120 per year per
matter of fact, if the Senator will look
will for the first time in their lives have
LL)
I
payment?
at the report. he will see that we put in
an opportunity to live in a decent en-
am
nendment
Mr. BROOKE Mr. President, it would,
the report what we intended. I caught
vironment. The potential of existing leg-
between
under the amendment, be eligible under
the difference between the report and
islation to provide that environment must
ne confer
hose circumstances. It was not the in-
the bill and saw it did not fit. So we in-
be exploited in the coming years. and
ts and in
tent to deny that family any Federal as-
serted language which made it perfectly
this requires the continuation of these
sistance.
clear.
programs. I am confident that Senators
satisfac
Mr. GOODELL. I appreciate the Sen-
Mr. TOWER. Mr. President, if the Sen-
will recognize the importance cf this
ator from
mor's answer. and would like to ask
ator will yield, I am glad to read to him
legislation, and give S. 2864 their full
will
un
mother question.
the language which amended that sec-
support. We must respond affirmatively
If an authority charges over 25 per-
tion:
today so that our American fellowman
cent of the tenant's income for a family
Any grants made under this section to
does not have to watch his city die to-
may
very
which in addition does qualify for the
a State. metropolitan. or regional planning
morrow.
te
a
$120 hardship payment. would the hous-
agency, an economic development district, or
Mr. BROOKE. Mr. President the
good
1114 authority be eligible to receive both
any other areawide planning agency for use
Housing and Urban Development Act of
the Brooke payment and the $120?
by such agency or district to provide plan-
1969 represents a significant step toward
Mr. BROOKE. The answer is "Yes."
ning assistance to any local government or
I concur
achieving this Nation's goal of providing
any agency or instrumentality of a local
ator from
Mr. GOODELL. Finally, Mr. President,
government shall be used in a manner con-
a decent home for every American. I
since the Brooke subsidy is subject to an-
sistent with the Federal Government's policy
commend my esteemed colleagues on the
ER.
The
mual appropriation. there is some ques-
or relying on the private enterprise system to
Senate Banking and Currency Commit-
e amend-
non as to whether the authorities will
provide those services which are reasonably
tee and reserve special praise for Chair-
York (Mr.
be able to rely on funds unless appropri-
and expeditiously available through ordinary
man SPARKMAN and Senator BENNETT who
ations are made. The $120 statutory
business channels.
contributed significantly to the develop-
O.
payment. therefore, in my opinion, must
Mr. MILLER. That clears the problem
ment of this legislation.
dent, may
be maintained.
up as far as I am concerned, and I thank
This legislation contains a number of
I would like to ask if the Senator from
my colleagues for giving me those an-
important provisions. I will. however.
The bill
assachusetts agrees that the Brooke
swers.
only highlight those provisions which I
If there
rental assistance will be in addition to,
The PRESIDING OFFICER. (Mr.
feel deserve special attention.
to
be
not in substitution for. any other contri-
CRANSTON in the chair). The bill is open
Section 114 of the bill would authorize
butions or payments provided under the
to further amendment. If there be no
the Government National Mortgage As-
act.
further amendment to be proposed. the
sociation to purchase mortgages at par
The Sen-
Mr. BROOKE. The assistance would
question is on the engrossment and third
and sell these mortgages either immedi-
be in addition to, rather than in lieu of.
reading of the bill.
ately or at any other time at a price
time to
Mr. GOODELL I appreciate the clari-
The bill was ordered to be engrossed
lower than par if necessary to meet the
dention of the legislative history on this
for a third reading, and was read the
range of market prices. Thus. GNMA
dent, will
soint, because I think it is a very vital
third time.
would have added flexibility in the timing
factor in the case of many persons. par-
Mr. PERCY. Mr. President. in the Feb-
of its sales. Since GNMA has available
sicularly in our urban housing areas. I
ruary issue of the Community Renewal
approximately $1.9 billion in unused au-
Senator
thank the Senator.
Society, John Russell wrote:
thorizations, its authority under this sec-
Mr. MILLER. Mr. President, I. would
The most ghastly thing of all is to watch
tion can now be used to produce a sub-
appreciate it if I could get the attention
a city die. and without benefit of bomb. Her
stantial volume of housing which will
of the Senator from Alabama (Mr.
we might
gleaming towers, swift flowing arteries, and
inure to the benefit of low- and moder-
SPARKMAN). who is the manager of the
new facade give evidence of vitality and
ate-income families.
will the
bill. SO that I could address a few ques-
strength. while underneath, the cancer eats
In the area of public housing. Senator
tions to him. I would like to refer spe-
away.
MCINTYRE and I introduced a bill earlier
cifically to section 303 of the bill on page
We can be proud of the tremendous
this year which should have a substantial
29.
strides taken to assure that such a fate
impact on the quality of public housing.
iate it if
Mr. SPARKMAN I may say to the
does not await America's cities. The en-
This bill is embodied in section 211 of the
request
Senator from Iowa that we amended that
deavors undertaken to attain our na-
present act and would provide additional
minutes.
section. That provision has to do with
tional goal of "a decent home and a
rental assistance in behalf of very low-
providing consultants and planning. Is
suitable living environment for every
income tenants of public housing proj-
that not correct?
American family" are tremendous. The
ects. Thus, rental assistance payments
The Sen-
Mr. MILLER. That is correct.
task now before us is to be certain that
would be available with respect to public
Mr. SPARKMAN. We amended it to
our work is not frustrated and that it
housing and leased housing units to en-
I take
make it completely clear that it is op-
can be continued.
able families of very low income to afford
colloquy
tional with the county, the municipality.
S. 2864. a bill favorably reported by
rentals with no more than 25 percent of
chusetts
the regional establishment. whatever it
the Committee on Banking and Currency,
their incomes.
a provi-
may be. It is not compulsory. Many per-
would. first. establish new termination
Information available from HUD indi-
d. I be-
sons seem to have gotten the idea that
dates for present housing programs, and,
cates that there are approximately
clear its
we were saying they had to use these
second, authorize new funds to continue
180,000 tenants in public housing projects
milies of
consultants. That was not the intention
these vital programs. It would also, in
who pay in excess of 25 percent of their
housing
of the committee at all.
some cases, expand the existing pro-
income for such housing. This problem
of their
We inserted language to make it per-
grams. In this way, S. 2864 would help to
is further accentuated by inflationary
ce pay-
fectly clear that it was purely voluntary.
make present programs more effective
pressures which are increasing operating
c hous-
Mr. MILLER. May I say that concern
and workable as our Nation strives to
costs considerably. Many public housing
rovision
was expressed to me that they would
meet the present housing crisis.
authorities, unable to obtain additional
lower
have to be used and the State planning
We already have a wide range of hous-
funds to cover these increased costs. are
income.
service could not be made available.
ing programs on the books which cover
looking to public housing tenants for
differ-
Mr. SPARKMAN. No: that is not true.
every aspect of our national housing
their source of additional funds. But
me, the
The language makes it completely op-
needs. Basically, the pending legislation
these public housing tenants are unable.
t under
tional. Language was adopted which I
relies upon these programs which are
in many cases, to meet prior payment
now re-
am sure is completely satisfactory to the
presently in operation and functioning
schedules without allocating a dispropor-
for the
Senator.
with some degree of success. To fail to
tionate share of their income to housing.
low in-
Mr. MILLER. The reason for my in-
favorably act on S. 2864 would be to
and they find it impossible to do so as
quiry is that my Governor was quite con-
fail to extend such vital programs as the
their rental payments increase still
or from
Gerned with the provision of the original
Federal Housing Administration pro-
further.
an au-
bill. Now that it has been changed to
gram, model cities, public housing, rent
We believe that no public housing ten-
percent
make it optional the problem may have
supplement. and urban renewal. This
ant should pay more than 25 percent of
which I
been taken care of.
would indeed be a tragedy.
their income for housing; however. we
om the
Mr. SPARKMAN. The draft did not
When these programs become fully op-
certainly would encourage public housing
11 that
comply with what was intended. As a
erational, millions of American families
authorities to charge considerably less
on still
26722
CONGRESSIONAL RECORD
September 23, 1969
S
where it is economically feasible to do so.
comings of public housing with persons
short of our goal. The goal of producing
er
Where a tenant's payments do not cover
possessing considerable expertise on the
26 million housing starts and 6 million
m
his proportionate share of operating
subject, to understand that sound man-
federally subsidized units in the next 10
G
costs, section 211 would provide rental
agement of these projects and adequate
years will not be achieved unless our
to
assistance payments to cover the differ-
tenant services play a significant role in
national commitments to these endeav-
ence. The Senate Banking and Currency
achieving balanced and successful proj-
ors are greater in the future than they
th
Committee has authorized $75 million
ects. And sound management is greatly
have been in the past. I am hopeful that
to
annually to fund these assistance pay-
facilitated by provisions which make pos-
my colleagues in the Senate will give
WO
ments. I anticipate that these funds will
sible long-term planning.
careful consideration to these goals and
Fe
be adequate to insure that no public
Section 207 of the act was designed to
to the legislation which is before us today.
vit
housing tenants pay more than 25 per-
respond to the need for basic tenant guar-
Mr. BAYH. Mr. President, I would like
im
cent of their income for housing.
antees of due process. In formulating
to take this opportunity to commend the
rei
Section 206 of this act permits HUD to
this provision, we took into account the
chairman and members of the Banking
suj
cover a portion of the operating costs of
need to insure the maintenance of ten-
and Currency Committee on their de-
als
public housing projects in addition to
ant's rights while avoiding cumbersome
velopment of a very fine and compre-
the
debt service-out of annual contribu-
requirements which would impede the
hensive bill. The Housing Act of 1969 has
19
tions. This new development should en-
administration of public housing pro-
certainly taken into consideration those
able local housing authorities in 15 large
grams. Thus, section 207 requires that
factors which are so vital to the con-
me
cities which are now facing serious fi-
public housing applicants be given an op-
tinuance of our efforts to provide decent
An
nancial problems because of increased
portunity to be heard informally when
and adequate housing for every Ameri-
frii
operating costs to rectify their financial
their application has been rejected. In
can citizen.
of
affairs.
the course of such a hearing, it is en-
The provisions of this act that increase
sign
Once those public housing authori-
visioned that new developments might
the capacity of local financial institu-
tion
ties which are operating at large deficits
be brought to the attention of public
tions and housing renewal agencies
livi
gain stability. and public housing tenants
housing authorities which had not been
should greatly facilitate the acquisition
N
are no longer charged a disproportionate
made a part of the decisionmaking proc-
of moderate- and low-income housing by
sup
share of their income for housing, our
ess. The section would also require local
citizens who in many instances are pres-
to (
attention must turn to improving the
public housing authorities to notify ap-
ently not able to qualify. The increased
T
quality of living in public housing. I
plicants determined to be eligible for ad-
mortgage limitations and other reflec-
hav
should emphasize that I do not view
mittance of the approximate time when
tions of cost increases will enable greater
que
public housing as the ultimate answer to
a unit would be available, to the extent
numbers of Americans to obtain a home
M
the needs of low-income families. On the
that this information can be reasonably
that fulfills their needs for totally ade-
fore
contrary. I foresee the day when public
determined by the local housing author-
quate accommodations.
Mis
housing as we know it today will be re-
ity. This requirement would give the ap-
I am especially pleased that the com-
mal
placed by new approaches to low-income
plicant some basis for making an in-
mittee included in this bill as an amend-
him
housing. In the interim. however, we
formed judgment on how best to meet his
ment to section 3 of the 1968 Housing
I WC
must not lose sight of the need to provide
household needs.
Act, the provisions of S. 2610 which I
I su
a decent home for persons who are un-
It is hoped that the foregoing provi-
introduced on July 14, 1969, which call
T
able to obtain another form of housing.
sions-designed to improve the quality
for broadening of the employment and
will
We must not allow the standard of liv-
of living in public housing projects—
business opportunities of low income per-
T
ing in these projects to deteriorate in
will produce the desired results. The
sons in connection with HUD assisted
roll
anticipation of the development of more
Banking and Currency Committee has
projects.
M
imaginative housing programs and the
also requested that HUD undertake a
Throughout our country individual
ask
final implementation thereof.
comprehensive study of public housing
workers and businessmen who reside and
for t
Many public housing projects in this
to evaluate subsidy requirements in
do business in areas affected by programs
Th
country fail to meet standards set forth
terms of public housing authority in-
of urban renewal, housing construction,
obje
in local housing codes with respect to
comes and rent-paying ability of tenants,
industrial development, and other pro-
maintenance and sanitation. In many
the programs and services provided, and
grams that result in significant impact on
the community are very actively seeking
M
locales, these housing codes represent the
other activities related to public housing.
bare minimum required for common de-
This study, coupled with the recom-
additional opportunity to participate in
to in
cency, and more rigorous standards are,
mendations of the Douglas Commission
such change. And I am most gratified to
of ru
in fact, required by HUD. In many cities
and task forces established by the Nixon
see that the committee felt this extension
Th
local housing projects fail to comply with
would greatly broaden the scope of em-
stand
administration, should provide a sound
either set of standards. The primary fac-
basis for next year's legislative proposals
ployment and business opportunity for
the ,
tor which mitigates against such compli-
lower income persons and aspiring mi-
tude
in this vital area.
ance is the lack of funds to rehabilitate
There are two other provisions which
nority entrepreneurs. It is my hope that
ing c
and modernize existing. older projects.
I believe deserve mention. Section 212 of
the policies developed by the Secretary of
denia
Although HUD has allocated some of its
the act would provide for continuation
Housing and Urban Development with
I A
modernization and rehabilitation funds
regard to section 3 will reflect the ur-
urbai
of the section 202 program of housing
to these units. its authorization has been
for the elderly and the handicapped.
gency inherent in the broadening of its
a sta,
inadequate because of the need to use
This program was to have been phased
scope.
perm
most of the available funds to assist new
out and replaced by the section 236
probl
DECENT HOUSING FOR ALL AMERICANS
Farm
projects. Therefore, I submitted a pro-
program; however, the program has
Mr. YARBOROUGH Mr. President.
comm
posal to the Senate Banking and Cur-
proved extremely effective and efficient
one of this Nation's most pressing prob-
and t
rency Committee which has been adopted
and deserves continuation. The commit-
lems is the lack of decent housing for
able
in section 206 of this act. This measure
tee also rejected the concept that section
many American families. The slums that
would provide an additional $20 million
streng
221(d) (3) below market interest rate
exist in our cities and the poverty areas
people
authorization for annual contribution
projects be converted into section 236
that can be found throughout rural
rural
contracts for low-rent public housing
projects. The committee reasserted its
America are a national disgrace. In this
ful co
programs. These funds will be earmarked
mandate that section 221 (d) (3) projects
the richest Nation in the world. there is
for modernizing and rehabilitating exist-
The
should not be discontinued until the
no excuse why every family in America
basis
ing. older projects. In addition, the com-
committee is satisfied that the section
does not have suitable housing.
is bef
mittee authorized $25 million in new an-
236 program is fully operational.
Unfortunately, ever increasing con-
will
nual contribution authority which will
e:
The foregoing provisions, coupled with
sumer prices and interest rates on mort-
lous r
become available July 1. 1971.
a substantial number of equally impor-
gages have made it impossible for many
other
One of the most significant steps taken
tant provisions which have been touched
lower income families to buy a decent
9 day
by the committee was the authorization
on by my colleagues today, constitute an
home. This situation has resulted in
act
of appropriations through fiscal year 1972
e,
impressive piece of legislation which
bringing the homebuilding industry to a
see th
for upgrading management and tenant
should improve the quantity and quality
virtual standstill. The difficulties that
tinue
services in public housing projects. One
of housing in this country. We must not
now exist in housing industries only serve
at
need only discuss the needs and short-
fall to realize, however, that we are far
to dramatize the importance of our Fed-
26724
CONGRESSIONAL RECORDSENATE
September 23, 1969
Sept
(3) by striking "trailer coach mobile
CONVERSION OF SECTION 236 PROJECTS TO
shall be made only during such time as the
contin
dwellings" in paragraph (6) of subsection
CONDOMINIUM OWNERSHIP
mortgagor shall continue to occupy the prop-
(4)
(a) and inserting in lieu thereof "mobile
SEC. 109. (a) Section 236 of the National
erty which secures the mortgage and shall
text; .
Housing Act is amended by adding at the
be in amounts determined pursuant to the
tated
homes": and
(4) by striking "$1,800 per space or $500,-
end thereof the following new subsection:
formula prescribed in section 235(c) for the
thereo
000 per mortgage for trailer courts or parks"
"(n) (1) The Secretary is authorized, with
payment of assistance payments on behalf of
or int
in the first sentence of subsection (c) (3) and
respect to any project involving a mortgage
mortgagors whose mortgages are insured
nursin
insured under subsection (j), to permit a
under section 235(1) Provided, That interest
facility
inserting in lieu thereof "$2,500 per space or
$1,000,000 per mortgage for mobile home
conversion of the ownership of such project
reduction payments may be made on behalf
(5)
to a plan of family unit ownership. Under
of a homeowner who assumes a mortgage
"opera
courts or parks".
insured under this subsection with respect
ing in
HIGH-COST AREA MORTGAGE LIMITS FOR LOW
such plan, each family unit shall be eligible
for individual ownership and provision shall
to which interest reduction payments have
cility":
AND MODERATE INCOME HOUSING
be included for the sale of the family units,
been made on behalf of the previous owner.
(6)
SEC. 104. (a) Section 221 (d) (2) (A) of the
together with an undivided interest in the
if the homeowner is approved by the Secre-
inserti
National Housing Act is amended by striking
common areas and facilities which serve the
tary as eligible for receiving such assistance.
"(4)
out the second proviso and inserting in lieu
project, to lower income purchasers. The
(b) The first sentence of section 236(i) (2)
mortga
thereof the following: : Provided further,
Secretary shall obtain such agreements as he
of such Act is amended by adding before the
celved.
That the Secretary may, in his discretion, in-
period at the end thereof the following
accords
determines to be necessary to assure con-
crease the foregoing dollar amount limita-
tinued maintenance of the common areas
Provided. That the foregoing limitations
Public
tions by not to exceed 45 per centum in any
and facilities. Upon such sale, the family
shall be applicable to families purchasing
which
geographical area where he finds that cost
unit and the undivided interest in the com-
individual condominium units covered by
mediat
levels so require:".
mon areas shall be released from the lien of
mortgages insured under subsection (n) who
home E
(b) Section 235 of such Act is amended-
by the
the project mortgage.
were not occupants of the rental project
(1) by striking out the last proviso in
immediately preceding its conversion to a
there is
"(2) The Secretary is authorized. upon ap-
subsection (b) (2) and inserting in lieu there-
plication by the mortgagee. to insure under
condominium project".
(B) th
of the following: Provided further, That
(c) Section 238(a) of such Act is
politica
this subsection mortgages financing the pur-
the amount of the mortgage attributable to
chase of individual family units under the
amended—
the pr
the dwelling unit shall involve a principal
plan prescribed in paragraph (1). Commit-
(1) by striking out "or 237" each place jt
located
obligation not in excess of $15,000 (or $17,500.
appears in paragraph (1) and inserting in
licensu:
ments may be issued by the Secretary for
if the mortgagor's family includes five or
lieu thereof "236(n) (2) Of 237"; and
ing the
the insurance of such mortgages prior to the
more persons). except that the Secretary may,
date of their execution or disbursement
(2) by striking out "or 236" each place 11
shall b
in his discretion. increase the foregoing dol-
thereon. upon such terms and conditions as
appears in paragraph (2) and inserting in
the Sec
lar amount limitations by not to exceed 45
the Secretary may prescribe. To be eligible
lieu thereof "or section 236(1)".
as he n
per centum in any geographical area where
(d) Section 3(a) of the Act entitled "An
agency
for such insurance. the mortgage shall-
he finds that cost levels so require"; and
"(A) involve a principal obligation (in-
Act to amend chapter 37 of title 38 of the
and eni
(2) by striking out subparagraph (B) of
United States Code with respect to the vet-
home I
cluding such initial service charges. and such
eran's home loan program. to amend the
gage in
subsection (1) (3) and inserting in lieu there-
appraisal, inspection. and other fees, as the
of the following:
Secretary shall approve) in an amount not to
National Housing Act with respect to in-
tion."; E
"(B) where it is to cover a one-family unit
terest rates on insured mortgages. and for
(7) t
exceed the Secretary's estimate of the ap-
praised value of the family unit, including
other purposes", approved May 7. 1968. is
(h) at
in a condominium project. have a principal
amended by striking out "236(1) (4) (B). 240
"(g)
obligation not exceeding $15,000 (or $17,500,
the mortgagor's interest in he common areas
if the mortgagor's family includes five or
and facilities. as of the date the mortgage is
(c) (4)" and inserting in lieu thereof "236
regulati
more persons) except that the Secretary may,
(j) (4) (B). 236(n) (2) (B). 240(c) (4)
the prc
accepted for insurance:
interme
in his discretion. increase the foregoing dol-
"(B) bear interest (exclusive of premium
PREFERENCES IN SECTION 237 MORTGAGE
with th
lar amount limitations by not to exceed 45
charges, for insurance and service charges,
INSURANCE PROGRAM
Welfare
per centum in any geographical area where
if any) at not to exceed such per centum
SEC. 110. Section 237(d) of the National
aspects
he finds that cost levels so require; and".
per annum (not in excess of 6 per centum)
Housing Act is amended—
volved 1
MORTGAGE INSURANCE ON CONDOMINIUM
on the amount of the principal obligation
(1) by inserting "and in providing coun-
"(h)
UNITS FOR SERVICEMEN
outstanding at any time as the Secretary
seling services" after "applications"; and
the Secr
SEC. 105. Section 222(b)(1) of the Na-
finds necessary to meet the mortgage market;
(2) by inserting "(1) to families which are
fare as t
tional Housing Act is amended by inserting
"(C) provide for complete amortization by
eligible for assistance payments under sec-
Interme
"or 234(c)," immediately before the word
periodic payments within such term as the
tion 235, and (2)" after "this section".
which a
"except".
Secretary may prescribe. but not to exceed
EXPANSION OF THE FHA NURSING HOME PRO-
posed u:
three-quarters of the Secretary's estimate of
GRAM TO INCLUDE INTERMEDIATE CARE FACILI-
FLEXIB
ASSISTANCE PAYMENTS UNDER SECTION 235 FOR
the remaining economic life of the building
TIES
FAR
PURCHASER ASSUMING MORTGAGE
improvements; and
SEC. 111. Section 232 of the National Hous-
SEC. 1
SEC. 106. Section 235(c) of the National
'(D) be executed by a mortgagor who shall
ing Act is amended-
Act Is as
Housing Act is amended by striking out
have paid (1) in the case of any family whose
(1) by striking out subsection (a) and
the foll
"subsection (j) (4)" and inserting in lieu
income is not in excess of 135 per centum
thereof "subsection (1) or (1) (4)
of the maximum income limits which can be
inserting in lieu thereof the following:
"(a) The purpose of this section is to as-
AUTHORIZATION FOR ASSISTANCE PAYMENTS
established in the area, pursuant to the lim-
sist in the provision of facilities for either
"Sec.
UNDER SECTIONS 235 AND 236
itations prescribed in sections 2(2) and 15(7)
of the following purposes or for a combina-
provision
SEC. 107. (a) The second sentence of sec-
(b) (11) of the United States Housing Act
tion of such purposes:
family u
of 1937, for initial occupancy in public hous-
"(1) The development of nursing homes
mum pr:
tion 235(h) (1) of the National Housing Act
ing dwellings, at least $200, or (11) in the case
for the care and treatment of convalescents
in the VI
is amended-
(1) by striking out "and" the second time
of any other family, at least 3 per centum (or
and other persons who are not acutely ill
adjusted
such larger amount as the Secretary may
it appears; and
and do not need hospital care but who re-
"(b) A
require) of the Secretary's estimate of the
(2) by inserting before the period a comma
quire skilled nursing care and related medical
enactme
cost of acquisition, which amount (in cash
services.
velopmer
and the following: "and by $170,000,000 on
or its equivalent) in either instance may be
July 1, 1971".
"(2) The development of intermediate care
determin
applied for the payment of settlement costs
(b) The second sentence of section 236
facilities for the care of persons who. while
index in
and initial payments for taxes. hazard insur-
not in need of nursing home care and treat-
lower the
(i) (1) of the National Housing Act is
ance, mortgage insurance premiums, and
ment, nevertheless are unable to live fully
1965. If
amended-
other prepaid expenses.
(1) by striking out "and" the second time
independently and who are in need of min:-
price ind
"(3) Upon the sale of all of the family
mum but continuous care provided by )i-
per cent
it appears; and
units covered by the project mortgage. and
(2) by inserting before the period a com-
censed or trained personnel.";
maximum
the release of all of the family units (in-
(2) by striking out "and" at the end of
!erred to
ma and the following: "and by $170,000,000
cluding the undivided interest allocable to
subsection (b) (1):
or decrea
on July 1. 1971".
each unit in the common areas and fa-
(3) by redesignating subsection (b) (2) of
age so de
ASSISTANCE PAYMENTS WITH RESPECT TO
cilities) from the lien of the project mort-
(b) (3) and inserting a new subsection (b) 12.
8100). eff
EXISTING DWELLINGS UNDER SECTION 235
gage. the insurance of the project mortgage
to read as follows:
in the Fe
SEC. 108. Section 235(h) (3) of the National
shall be terminated and no adjusted premium
"(2) the term intermediate care facility
after Jan
Housing Act is amended-
charge shall be collected by the Secretary
means a proprietary facility or facility of
after. the
(1) by inserting "and" at the end of sub-
private nonprofit corporation or association
tent by W
upon such termination.
paragraph (A): and
"(4) As used in this subsection. the terms
licensed or regulated by the State (or. :
mg calen
(2) by striking out subparagraphs (B)
'mortgage' and 'common areas and fa-
there is no State law providing for such
the price
and (C) and inserting in lieu thereof the
cilities' shall have the same meaning as in
licensing and regulation by the State. by the
following:
section 234.
municipality or other political subdivision 111
"(B) 30 per centum of the total additional
which the facility is located) for the accom-
section w
"(5) The Secretary is authorized to make
amount of contracts for assistance payments
periodic interest reduction payments on be-
modation of persons who, because of in-
authorized by appropriation Acts to be made
half of a mortgagor whose mortgage is in-
capacitating infirmities. require minimum
been Becretary mad
prior to July 1, 1971,".
sured under this subsection. These payments
but continuous care but are not in need n.
1969
ptember 23, 1969
CONGRESSIONAL RECORD-SENATE
26725
as
the
medical or nursing services; and"
has risen or fallen by at least 3 per centum,
bands. groups. and nations, including Alaska
prop-
by striking out in the introductory
the dollar limitation on such maximum prin-
Indians. Aleuts, and Eskimos, of the United
shall
subsection (d) "a new or rehabili-
cipal mortgage amounts, as previously ad-
States".
to
the
nursing home" and inserting in lieu
justed. may be increased or decreased, as
(b) The first sentence of section 116 of
for
the
new or rehabilitated nursing home
appropriate. by the percentage so determined
such Act is amended by striking "and coun-
of
care facility or combined
(adjusted to the nearest $100). effective
ties" and inserting in lieu thereof "counties.
insured
home and Intermediate care
upon the date of publication in the Federal
and Indian tribes, bands. groups. and na-
interest
Register.
tions. including Alaska Indians, Aleuts. and
behalf
by striking out in subsection (d) (2)
"(c) For purposes of this section, the term
Eskimos, of the United States".
of the nursing home" and insert-
'price index' means the 'Price Index for New
(c) The first sentence of section 117 of
respect
iieu thereof "operation of the fa-
One-Family Houses Sold', published annually
such Act is amended by striking "and coun-
have
by the Bureau of the Census."
ties" and inserting in lieu thereof "counties,
owner.
by striking out subsection (d) (4) and
INCREASE IN GNMA PURCHASE AUTHORITY
and Indian tribes, bands. groups, and nations
Secre-
in lieu thereof the following:
including Alaska Indians. Aleuts. and Es-
The Secretary shall not insure any
SEC. 113. Section 302(b) of the National
tance."
kimos. of the United States".
(1)
(2)
rigage under this section unless he has re-
Housing Act is amended-
(d) The first sentence of section 118 of
the
from the State agency designated in
(1) by striking "exceeds or exceeded
owing:
with section 604 (a) (1) of the
$17,500" in clause (3) of the proviso to the
such Act is amended by striking "and coun-
ties" and inserting in lieu thereof "counties,
tations
Health Service Act for the State in
first sentence and inserting in lieu thereof
and Indian tribes, bands, groups. and nations
is located the nursing home or inter-
"exceeds or exceeded $20.000":
hasing
including Alaska Indians, Aleuts. and Es-
care facility or combined nursing
(2) by striking "that exceeds $17,750" in
by
kimos. of the United States".
who
and intermediate care facility covered
the second sentence and inserting in lieu
project
thereof "that exceeds the otherwise applicable
EXTENSION OF PERIOD OF ELIGIBILITY OF LOCAL
the mortgage, a certification that (A)
is a need for such facility or home, and
maximum amount"; and
GRANTS-IN-AID FOR CERTAIN NEIGHBORHOOD
to
a
(3) by striking "did not exceed $17.500" in
DEVELOPMENT PROJECTS
there are in force in such State or other
tical subdivision of the State in which
the second sentence and inserting in lieu
is
SEC. 203. Section 133(a) of the Housing
proposed facility or home would be
thereof "did not exceed the otherwise ap-
Act of 1949 is amended—
lace
it
ated reasonable minimum standards of
plicable maximum amount".
(1) by striking out "For" and inserting in
in
insure and methods of operation govern-
GNMA SPECIAL ASSISTANCE PURCHASES
lieu thereof "Except as otherwise provided
the facility or home. No such mortgage
in this subsection for"; and
SEC. 114. Section 305 of the National Hous-
ace it
hall be Insured under this section unless
(2) by adding at the end thereof a new
ing Act is amended by adding at the end
in
Secretary has received such assurance
thereof a new subsection as follows:
sentence as follows: "In connection with any
he may deem satisfactory from the State
neighborhood development program for
"(j) Notwithstanding any other pro-
d
"An
that such standards will be applied
which an application has been filed on or
vision of this Act, the Association is author-
of
the
enforced with respect to any facility or
before August 11. 1969 (for which no con-
ized to purchase pursuant to commitments
vet-
located in the State for which mort-
or otherwise mortgages otherwise eligible
tract for financial assistance under the pro-
d
the
insurance is provided under this sec-
for purchase under this section at a price
gram has been authorized by the Secretary).
in-
and
the three-year period referred to above shall
equal to the unpaid principal amount thereof
d for
by adding new subsections (g) and
at the time of purchase. with adjustments
be extended to a period of four years prior
58, is
at the end thereof to read as follows:
to authorization of (1) the first contract for
for interest and any comparable items, and
240
'15) The Secretary shall prescribe such
financial assistance under the program which
to sell such mortgages at any time at a price
"236
regulations as may be necessary to carry out
within the range of market prices for the
includes the urban renewal area benefited by
the provisions of this section relating to
the public improvement or facility for which
particular class of mortgages involved at
credit is claimed. or (2) a contract for a loan
E
intermediate care facilities. after consulting
the time of sale as determined by the
the Secretary of Health, Education, and
Association."
or capital grant for an urban renewal proj-
Welfare with respect to any health or medical
ect authorized after August 11, 1969, in an
ional
aspects of the program which may be in-
AUTHORIZATION FOR RENT SUPPLEMENTS
area which is benefited by the public im-
in such regulations.
SEC. 115. The last sentence in section
provement or facility for which credit is
oun-
(h) The Secretary shall also consult with
of the Housing and Urban Develop-
claimed and which was included in the neigh-
Secretary of Health. Education. and Wel-
ment Act of 1965 is amended-
borhood development program application."
are
as to the need for and the availability of
(1) by striking out "and" the second time
REMOVAL OF INCOME LIMITATION FOR LOANS
sec-
intermediate care facilities in any area for
it appears: and
UNDER REHABILITATION LOAN PROGRAM
which an intermediate care facility is pro-
(2) by inserting before the period a comma
PRO-
posed under this section."
SEC. 204. Section 312(a) of the Housing
and the following: "and by $82,000,000 on
CILI-
Act of 1964 is amended by striking out the
ELEXIBLE MORTGAGE AMOUNTS FOR SINGLE-
July 1. 1971".
last sentence thereof.
FAMILY AND MULTIFAMILY HOUSING
RENT SUPPLEMENT UNITS IN SECTION 236
ous-
LOANS FOR PUBLIC HOUSING PROJECTS
SEC. 112. Title II of the National Housing
PROJECTS
SEC. 205. Section 9 of the United States
and
amended by adding at the end thereof
SEC. 116. Section (1) (D) of the
following new section:
Housing and Urban Development Act of
Housing Act of 1937 is amended by striking
out the third sentence.
"FLEXIBLE MORTGAGE AMOUNTS
1965 is amended by inserting before the
as-
ther
period a comma and the following: "except
PUBLIC HOUSING ANNUAL CONTRIBUTIONS
SEC. 243. (a) Notwithstanding any other
that the foregoing limitation may be in-
ina-
SEC. 206. (a) The proviso to section 10(b)
provision of this Act. the per dwelling or per
unit dollar limitations on the maxi-
creased to 40 per centum of the dwelling
of the United States Housing Act of 1937 is
mes
units in any such property if the Secretary
amended by inserting after "any contract"
principal mortgage amounts prescribed
ents
the various sections of this title shall be
determines that such increase is necessary
the following: ", although not limited to
111
ijusted as provided in this section.
and desirable in order to provide additional
debt service requirements,".
re-
(b) As soon as possible after the date of
housing for individuals and families meeting
(b) The first sentence of section 10(e)
ical
the requirements of subsection (c)".
of such Act is amended by striking out "on
elactment of the Housing and Urban De-
Hopment Act of 1969, the Secretary shall
TITLE II-URBAN RENEWAL AND HOUSING
July 1 in each of the years 1969 and 1970"
care
ASSISTANCE PROGRAMS
and inserting in lieu thereof "on July 1.
termine the extent by which the price
hile
1969, $170,000,000 on July 1, 1970, and $175.-
in calendar year 1968 was higher or
URBAN RENEWAL GRANT AUTHORITY
000,000 on July 1. 1971".
eat-
wer than the price index in calendar year
SEC. 201. The first sentence of section 103
ully
If the Secretary determines that the
NOTIFICATIONS TO APPLICANTS FOR ADMISSION
ni-
(b) of the Housing Act of 1949 is amended
index has risen or fallen by at least 3
TO PUBLIC HOUSING PROJECTS
11-
by striking out all that follows "exceed" and
centum. the dollar limitations on the
inserting in lieu thereof "$9,000,000,000,
SEC. 207. Section 10(g) of the United States
maximum principal mortgage amounts re-
of
which amount shall be increased by $1,300.-
Housing Act of 1937 is amended-
terred to in subsection (a) may be increased
000,000 on July 1. 1970. and by $1,700,000,000
(1) by striking out "and" at the end of
decreased. as appropriate, by the percent-
as
on July 1, 1971."
paragraph (2);
SO determined (adjusted to the nearest
(2) by striking out the period at the end
(2)
effective upon the date of publication
EXTENSION OF URBAN RENEWAL ASSISTANCE TO
of paragraph (3) and inserting in lleu there-
the Federal Register. As soon as possible
THE TRUST TERRITORY OF THE PACIFIC IS-
of and": and
January 1, 1970, and each year there-
LANDS AND TO INDIAN TRIBES
(3) by adding after paragraph (3) a new
a
the Secretary shall determine the ex-
SEC. 202. (a) Section 110(h) of the Hous-
paragraph as follows:
on
by which the price index in the preced-
ing Act of 1949 is amended by striking the
"(4) the public housing agency shall notify
if
calendar year was higher or lower than
second sentence and inserting in lieu there-
promptly (1) any applicant determined to
ch
price index in the calendar year imme-
of a new sentence as follows: "The term
be ineligible for admission to the project
he
Rately preceding the last year in which an
'State' includes the several States, the Dis-
of the basis for such determination and pro-
in
djustment in dollar limitations under this
trict of Columbia, the Commonwealth of
vide the applicant. within a reasonable time
n-
section was made, or if no adjustment has
Puerto Rico, the Trust Territory of the Pa-
after the determination is made, with an
n-
made, the calendar year 1965. If the
cific Islands, the territories and possessions
opportunity for a hearing on such deter-
m
Secretary determines that the price index
of the United States, and Indian tribes,
mination is made, with an opportunity for
of
26726
CONGRESSIONAL
September 23, 1969
Septem
tions, to (
a hearing on such determination, and (11)
to provide improved operating and mainte-
(1) as subsection (1). and by inserting after
expand pro
any applicant determined to be eligible for
nance services, the Secretary may make, and
subsection (h) the following new subsec.
training ir
admission to the project of the approximate
contract to make, annual rental assistance
tion:
efficient ci
date of occupancy insofar as such date can
payments to public housing agencies with
"(i) Any grants made under this section to
technical.
be reasonably determined."
respect to any low-rent housing projects.
a State, metropolitan, or regional planning
with the ca
"(b) The amount of the annual payment
agency. an economic development district. 0:
skills who
ROOM COST LIMITATIONS FOR PUBLIC HOUSING
with respect to any dwelling unit in a low-
lany other areawide planning agency for use
ployed by
PROJECTS
rent housing project shall not exceed the
by such agency or district to provide plan-
which has
SEC. 208. (a) The proviso to the first sen-
amount by which the rental for such unit
ning assistance to any local government O:
velopment
tence of section 15(5) of the United States
exceeds one-fourth of the tenant's income. as
any agency or instrumentality of a local go:-
zation whi
Housing Act of 1937 is amended by striking
determined by the Secretary
ernment shall be used in a manner con-
bility for
out "$750 per room" and inserting "45 per
"(c) There are authorized to be appro-
sistent with the Federal Government's policy
ment prog
centum" in lieu thereof.
priated such sums as may be necessary to
of relying on the private enterprise system
local resea
(b) Paragraph (5) of section 15 of such
carry out the provisions of this section,
to provide those services which are reason-
with hous
Act is amended by inserting "(A)" after
including such sums as may be necessary to
ablv and expeditiously available through
improveme
"(5)" and by adding at the end thereof a
make the rental assistance payments under
ordinary business channels."
cient land
new paragraph as follows:
contracts entered into under this section.
AUTHORIZATION FOR OPEN SPACE, URBAN BEAU-
similar con
"(B) As soon as possible after the date of
The aggregate amount of the contracts to
TIFICATION, AND HISTORIC PRESERVATION
"FELLOW
enactment of the Housing and Urban De-
make such payments shall not exceed
GRANTS
velopment Act of 1969, the Secretary shall de-
amounts approved in appropriation Acts, and
SEC. 304. The first sentence of section 702
"SEC. 80:
termine the extent by which the building cost
payments pursuant to such contracts shall
(b) of the Housing Act of 1961 is amended by
to provide
index in calendar year 1968 was higher or
not exceed $75,000,000 per annum.
ing of pro:
lower than such index in calendar year 1965.
striking out "and not to exceed $460,000.000
"(d) As used in this section, the term
prior to July 1, 1970" and inserting in lieu
and housi:
If the Secretary determines that the building
'rental for such unit' means the proportion-
thereof "not to exceed $460,000,000 prior to
herein pro
cost index has risen or fallen by at least 3 per
ate share attributable to a unit of the total
July 1. 1971. and not to exceed $548,000.000
such fellow
centum. the dollar limitations referred to in
shelter costs to be borne by the tenants
prior to July 1. 1972".
and upon
subparagraph (A) may be increased or de-
in a low-rent housing project, including any
creased, as appropriate, by the percentage so
separate charges to a tenant for reasonable
AUTHORIZATION FOR NEW COMMUNITY
Studies F
utility use and for public services and
SUPPLEMENTARY ASSISTANCE GRANTS
lished pur
determined (adjusted to the nearest $100)
ships shall
effective upon the date of publication in the
facilities."
SEC. 35. Section 412(d) of the Housing and
and privat
Federal Register. As soon as possible after
AUTHORIZATION FOR HOUSING FOR THE ELDERLY
Urban Development Act of 1968 is amended
education
January 1, 1970. and each year thereafter. the
OR HANDICAPPED
by striking out "July 1. 1970" and inserting
in the fiel
Secretary shall determine the extent by which
in lieu thereof "July 1. 1972".
the building cost index in the preceding cal-
SEC. 212. Paragraph (4) of section 202(a)
fields (incl
endar year was higher or lower than such
of the Housing Act of 1959 is amended to
COMMUNITY FACILITIES GRANTS
ing, econor
SEC. 306. (a) Section 708(a) of the Housing
ministratic
index in the calendar year immediately pre-
read as follows:
ceding the last year in which an adjustment
"(4) There is authorized to be appro-
and Urban Development Act of 1965 15
are orients
priated for the purposes of this section not
amended by adding at the end thereof the
and regior
in dollar limitations under this subparagraph
to exceed $500,000,000, which amount shall
following: "In addition there is authorized
newal, and
was made. or if no adjustment has been made.
the calendar year 1965. If the Secretary de-
be increased by $80,000,000 on July 1 of each
to be appropriated for grants under section
"(b) The
703 not to exceed $34,000,000 for the fisca.
Studies Fe
termines that the building cost index has
of the years 1969, 1970, and 1971. Amounts SO
appropriated shall constitute a revolving
year commencing July 1, 1971."
after referr
risen or fallen by at least 3 per centum, the
fund to be used by the Secretary in carrying
(b) Section 708(b) of such Act is amended
consist of
dollar limitations referred to in subparagraph
out this section."
by striking out "1970" and inserting in lieu
the Secret:
(A). as previously adjusted, may be increased
thereof "1972".
opment as
or decreased, as appropriate. by the percent-
AUTHORIZATION FOR COLLEGE HOUSING
tutions of
age so determined (adjusted to the nearest
DEBT SERVICE GRANTS
URBAN MASS TRANSPORTATION
private nor
8100), effective upon the date of publication
SEC. 213. Section (f) (2) of the Hous-
SEC. 307. (a) The first sentence of section
cation, wh
in the Federal Register. For the purposes of
ing Act of 1950 is amended by striking all
4(b) of the Urban Mass Transportation Ac:
which prov
this subparagraph, the term 'building cost
that follows "exceed" and inserting in lieu
of 1964 is amended—
related to 1
index' means such index as the Secretary de-
thereof "$20,000,000, which amount shall be
(1) by striking out "and" the second time
(a). and t
termines to be appropriate after giving full
increased by $1,500,000 on July 1, 1970, and
it appears: and
which are
consideration to nationally recognized and
by $9,000,000 on July 1, 1971."
(2) by striking out the period and n-
relating to
published building cost indices."
serting in lieu thereof "; and $300,000,000 fo:
development
ASSISTANCE FOR HOUSING IN ALASKA
MANAGEMENT AND SERVICES IN PUBLIC HOUSING
fiscal year 1971.".
request of
SEC. 214. Section 1004(a) of the Demon-
(b) Section 5 of such Act is amended by
ommendat
PROJECTS
stration Cities and Metropolitan Develop-
striking out "1970" and inserting in 1:e::
to be select
SEC. 209. The last sentence of section 15(10)
ment Act of 1966 is amended by striking out
thereof "1971".
tion. Memi
of the United States Housing Act of 1937 is
"$7,500" and inserting in lieu thereof "$10,-
EXTENSION OF URBAN INFORMATION AND
to receive
amended by striking "July 1. 1970" and
875".
inserting "July 1, 1972" in lieu thereof.
NICAL ASSISTANCE SERVICES AUTHORIZATION
diem in lie
TITLE III-MODEL CITIES AND METROPOLITAN
SEC. 308. Section 906 of the Demonstratic
members o
WAIVER OF WORKABLE PROGRAM REQUIREMENT
DEVELOPMENT PROGRAMS
Cities and Metropolitan Development Act
suant to S
WITH RESPECT TO CERTAIN LOW-RENT HOUSING
1949.
AUTHORIZATION FOR MODEL CITIES PROGRAM
1966 is amended by striking out "July
IN PRIVATE ACCOMMODATIONS
1970" and inserting in lieu thereof "July
"M.
SEC. 210. (a) Section 23(f) of the United
SEC. 301. (a) Section (b) of the Dem-
"SEC. 803
States Housing Act of 1937 is amended by
onstration Cities and Metropolitan Develop-
1972".
this title
striking out all that follows "Housing Act of
ment Act of 1966 is amended-
TRAINING AND FELLOWSHIP PROGRAMS
tions presc
1949." and inserting in lieu thereof "shall not
(1) by striking out "and" the third time
SEC. 309. Title VIII of the Housing Aci
make mat
apply to low-rent housing assisted or to be
it appears: and
1964 is amended to read as follows:
in-
assisted under this section."
(2) by inserting before the period the fol-
lowing: ", not to exceed $287,500,000 for the
"TITLE VIII-TRAINING AND FELLOWSHIP
"(1) org
(b) The first proviso in section (c) of
PROGRAMS
expanding
the Housing Act of 1949 is amended—
fiscal year ending June 30, 1971. and not
Ing in skil
(1) by inserting "or under section 23 of
to exceed $1,500,000,000 for the fiscal year
"FINDINGS AND PURPOSE
cient comn
the United States Housing Act of 1937" after
ending June 30, 1972".
"SEC. 801. (a) The Congress finds that
nical. prof
"Housing and Urban Development Act of
(b) Section 111(c) of such Act is amended
rapid expansion of the Nation's urban
the capacit
1965"; and
by striking out "1970" and inserting in lieu
and urban population has caused
who are, or
(2) by inserting "(except a contract for
thereof "1972".
problems in urban and suburban developed
governmen
annual contributions under section 23 of
AUTHORIZATION FOR COMPREHENSIVE PLANNING
ment and created a national need to
sponsibiliti
such Act)' after "United States Housing Act
GRANTS
provide special training in skills needed
by a privat
SEC. 302. The fifth sentence of section 701
economic and efficient community
of 1937".
conducting
ment, and (2) support research in new
and commi
ADDITIONAL RENTAL ASSISTANCE IN BEHALF OF
(b) of the Housing Act of 1954 is amended
by striking out "and not to exceed $390,000.-
improved methods of dealing with
"(2) sup
VERY LOW INCOME TENANTS OF PUBLIC HOUS-
munity development problems.
that is ne
ING PROJECTS
000 prior to July 1, 1970" and inserting in
lieu thereof "not to exceed $390,000,000 prior
"(b) It is the purpose of this title
programs
SEC. 211. The United States Housing Act of
vide fellowships for the graduate training
programing
1937 is amended by redesignating section 24
to July 1, 1971, and not to exceed $430,000.-
professional city planning and urban
urban trar
as section 25, and by adding after section 23
000 prior to July 1, 1972".
housing technicians and specialists. and
nity developed
a new section as follows:
UTILIZATION OF PRIVATE ENTERPRISE IN COMPRE-
assist and encourage the States. in coope:
collating, $
"ADDITIONAL RENTAL ASSISTANCE
HENSIVE PLANNING AND PUBLIC WORKS PLAN-
tion with public or private universities
formation
"SEC. 24. (a) In order to enable public
NING
colleges and urban centers and with
(b) No
housing agencies to provide housing within
SEC. 303. Section 701 of the Housing Act of
firms and associations. labor unions
under this
1954 is amended by redesignating subsection
other interested associations and
approved a
the means of families of very low income and
23;
23, 1969
CONGRESSIONAL RECORD
26727
1969
to organize. initiate, develop. and
"(1) sets forth the proposed use of the
any other provision of law. to acquire. use.
new
I
programs which will provide special
funds and the objectives to be accomplished:
and dispose of land and other property as
in skills needed for economic and
"(2) explains the method by which the
he deems necessary to carry out the purposes
community development to those
required amounts from non-Federal sources
of subsection (a) (1) of this section".
section
professional. and other persons
will be obtained;
EXTENSION OF CERTAIN PROVISIONS OF LAW P.E-
planning
capacity to master and employ such
"(3) provides such fiscal control and fund
LATING TO HOUSING AND URBAN DEVELOPMENT
district,
who are, or are training to be. em-
accounting procedures as may be reasonably
TO THE TRUST TERRITORY OF THE PACIFIC
for.
by a governmental or public body
necessary to assure proper disbursement of,
ISLANDS
plan.
has responsibility for community de-
and accounting for, Federal funds paid to
SEC. 403. (a) Paragraph (12) of section 2
or by a private nonprofit organi-
the State under this section;
a
local
gov.
which is conducting or has responsi-
of the United States Housing Act of 1937
"(4) designates an officer or agency of the
is amended to read as follows:
8
housing and community develop-
State government who has responsibility and
programs; and (2) support State and
"(12) The term 'State' includes the States
policy
authority for the administration of a state-
system
research that IS needed in connection
of the Union. the District of Columbia. the
wide research and training program as the
are
reason.
housing programs and needs, public
Commonwealth of Puerto Rico, the Trust
officer or agency with responsibility and au-
through
programing. code problems. effi-
thority for the execution of the State's pro-
Territory of the Pacific Islands. and the terri-
land use. urban transportation. and
gram under this section; and
tories and possessions of the United States."
community development problems.
(b) Section 206 of the Housing Amend-
BEAU.
"(5) provides that such officer or agency
ments of 1955 is amended by striking out
FELLOWSHIPS FOR CITY PLANNING AND
will make such reports to the Secretary, in
"and the Territories and possessions of the
URBAN STUDIES
such form. and containing such information,
United States" and inserting in lieu thereof
section
802. (a) The Secretary is authorized
as may be reasonably necessary to enable the
702
"the Trust Territory of the Pacific Islands.
amended
fellowships for the graduate train-
Secretary to perform his duties under this
by
and the territories and possessions of the
$460,000.000
professional city planning and urban
section.
United States".
in
lieu
housing technicians and specialists as
"(c) No grant may be made under this sec-
(c) (1) Section 201 (d) of the National
prior
to
provided. Persons shall be selected for
tion for any use unless an amount at least
Housing Act is amended by inserting "the
$548,000,000
fellowships solely on the basis of ability
equal to such grant is made available from
Trust Territory of the Pacific Islands." after
upon the recommendation of the Urban
non-Federal sources for the same purpose
902
"Guam.".
Fellowship Advisory Board estab-
and for concurrent use.
(2) Section 207(a) (7) of such Act is
on
pursuant to subsection (b). Fellow-
"STATE LIMIT
amended by inserting "the Trust Territory
lousing
shall be solely for training in public
and
"SEC. 804. Not more than 10 per centum
of the Pacific Islands." after "Guam,"
amended
private nonprofit institutions of higher
of the total amount appropriated for the
(3) Section 9 of such Act is amended by
having programs of graduate study
inserting
the field of city planning or in related
purposes of this title may be used for mak-
inserting "the Trust Territory of the Pacific
(including architecture, civil engineer-
ing grants to any one State.
Islands," after "Guam,".
economics, municipal finance, public ad-
"TECHNICAL ASSISTANCE, STUDIES, AND PUBLI-
EMPLOYMENT OPPORTUNITIES FOR LOWER IN-
Housing
ministration, and sociology). which programs
CATION OF INFORMATION
COME PERSONS IN CONNECTION WITH HUD-
1965
is
oriented to training for careers in city
"SEC. 805. In order to carry out the pur-
ASSISTED PROJECTS
the
regional planning, housing, urban re-
pose of this title, the Secretary is authorized
SEC. 404. Section 3 of the Housing and
authorized
and community development.
to provide technical assistance to State and
Urban Development Act of 1968 is amended
section
(b) There is hereby established the Urban
local governmental or public bodies and to
to read as follows:
the
fiscal
Studies Fellowship Advisory Board (herein-
undertake such studies and publish and
"EMPLOYMENT OPPORTUNITIES FOR LOWER IN-
referred to as the 'Board'), which shall
distribute such information, either directly
COME PERSONS IN CONNECTION WITH AS-
amended
of nine members to be appointed by
or by contract, as he shall determine to be
SISTED PROJECTS
in
lieu
Secretary of Housing and Urban Devel-
desirable. Notning contained in this title
"SEC. 3. In the administration by the Sec-
opment as follows: Three from public insti-
shall limit any authority of the Secretary
of higher learning and three from
under any other provision of law.
retary of Housing and Urban Development
W
nonprofit institutions of higher edu-
of programs providing financial assistance in
of
section
"APPROPRIATIONS
who are the heads of departments
aid of housing; urban planning, development.
Act
which provide academic courses appropriately
"SEC. 806. There is authorized to be ap-
redevelopment, or removal: public or com-
related to the fields referred to in subsection
propriated for the purpose of making grants
munity facilities: and new community de-
time
and three from national organizations
and providing fellowships under this title,
velopment; the Secretary shall-
which are directly concerned with problems
without fiscal year limitation. not to ex-
"(1) require, in consultation with the
and
in-
relating to urban. regional, and community
ceed $30,000,000. Any amounts appropriated
Secretary of Labor, that to the greatest ex-
00,000
for
development. The Board shall meet upon the
under this section shall remain available
tent feasible opportunities for training and
request of the Secretary and shall make rec-
until expended.
employment arising in connection with the
by
immendations to him with respect to persons
"MISCELLANEOUS
planning and carrying out of any project
in
lieu
be selected for fellowships under this sec-
assisted under any such program be given
"SEC. 807. (a) As used in this title the
Members of the Board shall be entitled
to lower income persons residing In the area
term 'State' means any State of the United
TECH-
receive transportation expenses and a per
of such project; and
States. the District of Columbia, the Com-
dem in lieu of subsistence as authorized for
"(2) require, in consultation with the Ad-
monwealth of Puerto Rico, Guam, American
nstration
members of advisory committees created pur-
ministrator of the Small Business Admin-
Samoa, the Trust Territory of the Pacific
Act
of
suant to section 601 of the Housing Act of
istration and the Secretary of Labor, that to
Islands. and the Virgin Islands: and the term
"July
1,
1949.
the greatest extent feasible contracts for
'Secretary' means the Secretary of Housing
1,
"MATCHING GRANTS TO STATES
work to be performed in connection with
"July
and Urban Development.
any such project be awarded to business con-
"SEC. 803. (a) Subject to the provisions of
"(b) There are authorized to be appropri-
cerns. including but not limited to individ-
this title and in accordance with regula-
ated such sums as may be necessary for
uals of firms doing business in the field of
Act
of
tions prescribed by him, the Secretary may
administrative and other expenses in carry-
planning. consulting, design. architecture.
make matching grants to States to assist
ing out this title."
building construction, rehabilitation, main-
TITLE IV-MISCELLANEOUS
tenance, or repair. which are located in or
"(1) organizing, initiating, developing, or
owned in substantial part by persons resid-
expanding programs to provide special train-
FLEXIBLE INTEREST RATE AUTHORITY
mg in skills needed for economic and effi-
SEC. 401. Section 3(a) of the Act entitled
ing in the area of such project."
that
the
cient community development to those tech-
"an Act to amend chapter 37 of title 38 of
URBAN PROPERTY PROTECTION AND REINSUR-
areas
nical. professional. and other persons with
the United States Code with respect to the
ANCE-ENTRY INTO REINSURANCE CONTRACTS
severe
the capacity to master and employ such skills
veterans' home loan program. to amend the
SEC. 405. Section 1222(d) of the National
develop-
who are. or are training to be, employed by a
National Housing Act with respect to interest
Housing Act is amended by striking all that
to
(1)
governmental or public body which has re-
rates on insured mortgages. and for other
follows "thereafter" the first time that word
for
sponsibilities for community development. or
purposes", approved May 7, 1968, is amended
appears and inserting in lieu thereof a
develop-
by a private nonprofit organization which is
by striking out "October 1, 1969" and in-
period.
new
or
conducting or has responsibility for housing
serting in lieu thereof "April 1, 1970".
URBAN PROPERTY PROTECTION AND REINSUR-
com-
and community development programs; and
AUTHORIZATION FOR PROPERTY ACQUISITIONS IN
ANCE-STATE SHARE OF REINSURED LOSSES
"(2) supporting State and local research
APPLYING ADVANCES IN TECHNOLOGY TO HOUS-
to
that is needed in connection with housing
SEC. 406. Section 1223(a) of the National
pro-
ING AND URBAN DEVELOPMENT
of
programs and needs, public improvement
Housing Act is amended by striking out
and
programing, code problems. efficient land use,
SEC. 402. The first sentence of section
paragraph (1) and inserting in lieu thereof
and
urban transportation. and similar commu-
1010(c) of the Demonstration Cities and
the following:
to
nity development problems. and collecting,
Metropolitan Development Act of 1966 is
"(1) in any State which has not, after the
popera-
and
collating, and publishing statistics and in-
amended-
close of the second full regular session of
usiness
formation relating to such research.
(1) by inserting "(1)" after "authorized";
the appropriate State legislative body fol-
'(b) No grants may be made to a State
and
lowing the date of the enactment of this
and
under this section unless the Secretary has
(2) by inserting before the period a comma
title. adopted appropriate legislation, retro-
approved a plan for the State which-
and the following: "and (2) notwithstanding
active to the date of the enactment of this
26728
CONGRESSIONAL RECORD-SENATE
September 23, 1969
Septe
title, under which the State, its political sub-
spect to such mudslides) the purposes of this
Treasury as the current average market
by fami
divisions, or a governmental corporation or
title and the objectives of the program."
vield on outstanding marketable obligations
income
fund established pursuant to State law, will
INTERSTATE LAND SALES
of the United States with remaining periods
years. :
reimburse the Secretary for any reinsured
to maturity comparable to the average ma-
mittees
SEC. 409. The second sentence of section
losses in that State in any reinsurance con-
turities of such loans, adjusted to the nearest
ate and
tract year. in an amount up to 5 per centum
1403(a) of the Housing and Urban Develop-
one-eighth of 1 per centum, and shall be
any exc
ment Act of 1968 is amended to read as fol-
of the aggregate property insurance premi-
repaid within a period not to exceed two year:
suant t
lows: "As used in this subparagraph, the
ums earned in that State during the calen-
from the making of the loan or within such
terms 'liens', 'encumbrances' and adverse
S.
dar year immediately preceding the end of
additional period as may be authorized by
claims' do not refer to property reservations
SEC. 4
the reinsurance contract year on those lines
the Secretary in any case as being necessary
which land developers commonly convey or
Loan B
of insurance reinsured by the Secretary in
to carry out the purposes of this section
dedicate to local bodies or public utilities for
to read
that State during the contract year, to the
extent that reinsured losses paid by the Sec-
the purpose of bringing public services to
"(b) In determining whether to extend
"SEC.
financial assistance under this section, the
retary for such year exceed the total of (A)
the land being developed nor to taxes and
or retal
reinsurance premiums earned in that State
assessments imposed by a State. by any other
Secretary shall take into consideration
privileg
public body having authority to assess and
among other factors, (1) the suitability C:
combin
during that reinsurance contract year plus
tax property, or by a property owners' asso-
the area to the types of dwellings which Can
interest
(B) the excess of (1) the total premiums
ciation, which. under applicable State or 10-
feasibly be provided. and (2) the extent 15
mium. a
earned by the Secretary for reinsurance in
cal law, constitute liens on the property
which the assistance will (1) facilitate pro-
deducti
that State during a preceding period meas-
ured from the end of the most recent rein-
before they are due and payable. nor to
viding needed decent, safe, and sanitary
cash cr
covenants. conditions, and restrictions im-
housing, (11) be utilized efficiently and expe-
net cost
surance contract year with respect to which
posed to control future use of the property
ditiously, and (iii) fulfill a need in the area
lawful <
the Secretary was reimbursed for losses un-
and the types and locations of structures to
which is not otherwise being met through
such tra
der this title over (ii) any amounts paid by
be placed thereon; If (a) the developer. prior
other programs, including those being car-
ful con
the Secretary for reinsured losses that were
to the time the contract of sale or lease is
ried out by other Federal, State, or local
such tr:
incurred during such period;".
entered into, has furnished each purchaser
agencies."
may be
STUDY OF REINSURANCE AND OTHER PROGRAMS
with a statement setting forth in clear and
(2) Section 517(b) of such Act is amended
acting
understandable terms the types and amounts
by striking out "and 515" and inserting
SEC. 407. Section 1235(b) of the National
This sec
Housing Act is amended by striking "one
of all such reservations. taxes, assessments,
515", and by adding after "(b) (4)). the
on singl
year following the date of the enactment of
covenants, conditions, and restrictions which
following: "and 524,".
(b) S
this title" and inserting in lieu thereof "De-
are applicable to the lot to be purchased,
SALE OF LAND FOR HOUSING
Loan A
cember 31. 1969''.
and (B) receipt of such statement has been
SEC. 412. (a) Notwithstanding the provi-
amende
NATIONAL FLOOD INSURANCE PROGRAM
acknowledged in writing by the purchaser,
sions of the Federal Property and Ad-
new par
and a copy of the acknowledged statement is
ministrative Services Act of 1949, any excess
"With
SEC. 408. (a) Paragraph (2) of section
filed with the Secretary."
real property within the meaning of such
this sub
1305(c) of the National Flood Insurance Act
of 1968 is amended by striking "June 30.
REPORTS
Act may in the discretion of the Administra-
thorized
tor of General Services be transferred 10
a corpo:
1970. permanent" and inserting in lieu
SEC. 410. (a) Section 1603 of the Housing
the Secretary of Housing and Urban Devel-
suant to
thereof "December 31, 1971, adequate".
and Urban Development Act of 1968, is
amended by striking out "January 15." and
opment at his request for sale or lease by
Develop
(b) Section 1315 of such Act is amended—
inserting in lieu thereof "February 1,".
him at its fair value for use in the provision
to inves
(1) by striking "June 30, 1970" and in-
of rental or cooperative housing to be occu-
ship, or
serting in lieu thereof "December 31, 1971";
(b) The last sentence of section 235(h) (2)
pied by families or individuals of low or
section
and
of the National Housing Act is amended by
striking out "annually" and inserting in lleu
moderate income. Any such sale or lease of
(c)
(2) by striking "permanent" and inserting
excess land shall be made only to (1) it
tional H
in lieu thereof "adequate".
thereof "semiannually".
public body which will use the land in con-
is amer
(C) Section 1361(c) of such Act is amend-
(c) The last sentence of section 236(1) (2)
of the National Housing Act is amended by
nection with the development of a low-rent
serting
ed by striking "permanent" and inserting in
housing project assisted under the United
(2) S
lieu thereof "adequate".
striking out "annually" and inserting in lieu
States Housing Act of 1937, or under a State
21, 1968
(d) (1) Section 1302 of the Housing and
thereof "semiannually".
or local program found by the Secretary of
striking
Urban Development Act of 1968 is amended
RURAL HOUSING
Housing and Urban Development to have the
thereof
by adding at the end thereof the following
SEC. 411. (a) Sections 513, 515 (b) (5), and
same general purposes as the Federal program
new subsection:
517(a) (1) of the Housing Act of 1949 are
under such Act. or (2) a purchaser or lesser
SEC. 4
"(f) The Congress also finds that (1) the
amended respectively by striking out "Octo-
who will use the land in connection with the
Housing
damage and loss which results from mud-
ber 1. 1969", wherever it appears in such sec-
development of housing (A) with respect 10
mediate
slides is related in cause and similar in effect
tions. and inserting in lieu thereof "Octo-
which annual payments will be made to the
first se:
to that which results directly from storms.
ber 1. 1973".
housing owner pursuant to section 101 0:
further,
deluges. overflowing waters. and other forms
(b) Section 517(c) of such Act is amended
the Housing and Urban Development Act of
continu
of flooding. and (2) the problems involved
by striking out "$100,000,000" and inserting
1965, (B) financed with a mortgage which
where tl
in providing protection against this damage
in lieu thereof "$350,000,000".
receives the benefits of the interest rate
Secretar
and loss. and the possibilities for making
(c) Section 517 of such Act is amended by
provided for in the proviso in section 221
(b) S
such protection available through a Federal
adding at the end thereof a new subsection
(d) (5) of the National Housing Act, or (C)
by strik
cr federally sponsored program. are similar
as follows:
with respect to which interest reduction pay-
ing in 1.
to those which exist in connection with
"(k) Any sale by the Secretary of loans
ments will be made under section 236 of the
That th
efforts to provide protection against damage
individually or in blocks, pursuant to sub-
National Housing Act: Provided, That prior
making
and loss by such other forms of flooding.
sections (c) and (g), shall be treated as a
to any such sale or lease to a purchaser
where tl
It is therefore the further purpose of this
sale of assets for the purposes of the Budget
lessee other than a public body, the Secretary
Secretar
title to make available. by means of the
and Accounting Act, 1921, notwithstanding
shall notify the governing body of the 10.
(c) Se
methods. procedures, and instrumentalities
the fact that the Secretary. under an agree-
cality where the land is located of the pr."
by Inser
which are otherwise established or available
ment with the purchaser. holds the debt in-
posed sale or lease and no such sale or lease
the end
under this title for purposes of the flood in-
struments evidencing the loans and holds
shall be made If the local governing bod:
covered
surance program, protection against damage
or reinvests payments thereon as trustee and
within ninety days of such notification. 100-
213 that
and loss resulting from mudslides that are
custodian for the purchaser."
mally advises the Secretary that it objects 10
Manager
caused by accumulations of water on or un-
(d) (1) Title V of such Act is amended by
the proposed sale or lease. If the United
be the
der the ground."
adding at the end thereof a new section as
States paid valuable consideration for an:
involvin
(2) Section 1370 of the Housing and Urban
follows:
such land the Secretary shall not sell it 10"
sured un
Developemnt Act of 1968 is amended by in-
less than its cost to the United States at the
of this 1
serting "(a)" after "SEC. 1370.", and by
"FINANCIAL ASSISTANCE TO NONPROFIT ORGA-
time of acquisition. In addition. If such land
be the (
adding at the end thereof the following new
NIZATIONS TO PROVIDE SITES FOR RURAL
contains improvements constructed by the
ance Ful
subsection:
HOUSING FOR LOW- AND MODERATE-INCOME
Federal Government which have potentia.
(d) S
(b) The term 'flood' shall also include
FAMILIES
use in the provision of housing for low-
to read E
inundation from mudslides which are caused
"SEC. 524. (a) The Secretary may make
moderate-income families or individuals
"(e) P
by accumulations of water on or under the
loans, on such terms and conditions and in
improvements shall be separately appraised
of this
ground: and all of the provisions of this title
such amounts as he deems necessary, to pub-
for such use and the price for which such
regard 1
shall apply with respect to such mudslides
lic or private nonprofit organizations for the
land is sold shall include an amount which
tained 1:
in the same manner and to the same ex-
acquisition and development of land as
is not less than the value of such improver
Secretar
tent as with respect to floods described in
building sites to be subdivided and sold to
ments as so appraised.
the mor
paragraph (1). subject to and in accord-
families, nonprofit organizations, and co-
(b) As a condition to any sale or lease
title of :
ance with such regulations, modifying the
operatives eligible for assistance under sec-
excess land under this section to a purchase"
nection
provisions of this title (including the pro-
tion 235 or 236 of the National Housing Act
or lessee other than a public body. the Sear
struction
visions relating to land management and
or section 521 of this Act. Such a loan shall
retary shall obtain such undertakings ns
an older
use to the extent necessary to ensure that
bear interest at a rate prescribed by the
may consider appropriate to assure that
conditio
they can be effectively so applied. as the
Secretary taking into consideration a rate
property will be used in the provision
eligibilit
Secretary may prescribe to achieve (with re-
determined annually by the Secretary of the
rental or cooperative housing to be occupies
section
23,
1969
September 23, 1969
CONGRESSIONAL RECORD-
26729
markst
families or individuals of low or moderate
surance is sought could not be met. If the
of the Senate be authorized and directed
obligations
income for a period of not less than twenty
Secretary finds that (1) the area is reason-
to make any necessary clerical and tech-
periods
The Secretary shall notify the Com-
ably viable, giving consideration to the need
nical changes in the engrossed bill
average
mittees on Banking and Currency of the Sen-
for providing adequate housing or group
F
(S. 2864).
the
nearest
and House of Representatives whenever
practice facilities for families of low and
and
shall
moderate income in such area, and (2) the
The PRESIDING OFFICER. Without
excess land is sold or leased by him pur-
B
two
to the authority of this section.
property is an acceptable risk in view of such
objection. it is so ordered.
within
years
consideration. The insurance of a mortgage
Mr. MANSFIELD. Mr. President the
such
SAVINGS AND LOAN ASSOCIATIONS
uthorized
pursuant to this subsection shall be the ob-
Senator from Alabama (Mr. SPARKMAN
by
413. (a) Section 5 of the Federal Home
necessary
ligation of the Special Risk Insurance Fund."
Bank Act (12 U.S.C. 1425) is amended
deserves the highest commendation of
section.
(e) Section 214 of such Act is amended by
the entire Senate for his able and com-
to
read as follows:
inserting in the first sentence after "con-
extend
SEC. 5. No institution shall be admitted to
struct dwellings" the words "or mobile home
petent handling of the housing program
onsideration tion, the
retained in membership, or granted the
courts or parks".
extension just adopted overwhelmingly.
of nonmember borrowers, if the
uitability
SEC. 415. Section 702(c) of the Housing
Senator SPARKMAN yields to no one in his
of
which
smbined total of the amounts paid to it for
and Urban Development Act of 1965 is
knowledge and understanding of this
can
extent
interest. commission. bonus, discount. pre-
amended by striking out "October 1, 1969"
Nation's housing needs. He has been
to
mium. and other similar charges, less a proper
and inserting in lieu thereof "May 1. 1970".
pro-
constantly in the forefront, I might say,
deduction for all dividends, refunds. and
sanitary
SEC. 416. Section 2 of the National Housing
cash credits of all kinds, creates an actual
in bringing new and imaginative ideas
and
Act is amended by-
expe-
in
the
net cost to the home owner in excess of the
(1) inserting "(1)" after the words "for
into the field of housing. We are again
area
Lawful contract rate of interest applicable to
in his debt.
through
the purpose of" in the first sentence of sub-
being
such transactions, or. in case there is no law-
section (a):
Joining the distinguished chairman of
car.
contract rate of interest applicable to
or
(2) inserting ": and for the purpose of
the Banking and Currency Committee
local
such transactions, in excess of such rates as
(11) financing the purchase of a mobile home
in guiding this measure through to swift
may be prescribed in writing by the board
amended
to be used by the owner as his principal resi-
adoption by the Senate was the distin-
acting in its discretion from time to time.
inserting
dence" before the period at the end of the
This section applies only to home mortgages
guished senior Senator from Utah Mr.
(4)),
first sentence of subsection (a):
the
011 single-family dwellings."
BENNETT), the ranking minority member
(3) inserting "(other than mobile homes)"
(b) Section 5(c) of the Home Owners'
after "new residential structures" in clause
of the committee. Joined by the Senator
Loan Act of 1933 (12 U.S.C. 1464(c)) is
(1) of subparagraph (iii) of the second par-
from Texas (Mr. TOWER), their thought-
the
provi-
amended by adding at the end thereof a
agraph of subsection (a):
ful views on the matters involved con-
and
Ad-
new paragraph as follows:
(4) inserting the following new sentence
tributed a great deal to the high caliber
excess
Without regard to any other provision of
at the end of subsection (a) "The Secretary
of the entire debate. So to Senator
of
such
this subsection, any such association is au-
is hereby authorized and directed, with re-
BENNETT and to Senator TOWER both we
dininistra-
thorized to invest in shares of stock issued by
spect to mobile homes to be financed under
to
corporation authorized to be created pur-
are extremely grateful.
sferred
this section. to (1) prescribe minimum
Devel-
suant to title IX of the Housing and Urban
Likewise. we are indebted to the Sen-
standards of construction and design to as-
lease
by
Development Act of 1968. and is authorized
sure the livability and durability of the mo-
ator from Wisconsin (Mr. PROXMIRE for
provision
10 invest in any partnership, limited partner-
bile home; and (11) obtain assurances from
once again bringing his devoted efforts
be
occu-
ship. or joint venture formed pursuant to
the borrower that the mobile home will be
to bear on this measure. As usual. his
low
or
section 907(a) or 907(c) of that Act."
placed on a site which complies with local
contribution was immeasurable. The
of
(C) (1) Section 404(d) (2) (B) of the Na-
zoning and other applicable local require-
same may be said for the Senator from
to
(1)
8
notal Housing Act (12 U.S.C. 1727(d) (2) (B))
ments.";
New York (Mr. JAVITS).
in
con-
15 amended by striking out "1966" and in-
(5) inserting ", except that an obligation
low-rent
serting in lieu thereof "1965".
Finally, the Senate appreciates the
financing the purchase of a mobile home may
United
(2) Section 6(b) of the Act of September
contributions of the Senator from Min-
be in an amount not exceeding $10,000" be-
a
State
21. 1968 (Public Law 90-505) is amended by
fore the semicolon at the end of clause (1)
nesota (Mr. MONDALE), the Senator from
of
striking out "1968" and inserting in- lieu
in the first sentence of subsection (b);
Iowa (Mr. MILLER) and the many others
have
the
thereof "1965".
(6) inserting ": Provided, That an obliga-
who joined the discussion. The Senate
program
TECHNICAL AMENDMENT
tion financing the purchase of a mobile home
may again be proud of a fine achieve-
or
I
SEC. 414. (a) Section 235(c) of the National
may have a maturity not in excess of twelve
ment obtained with efficient and orderly
with
the
Housing Act is amended by inserting Im-
years and thirty-two days" before the semi-
action.
espect
to
mediately before the period at the end of the
colon at the end of clause (2) in the first
to
the
first sentence the following: ": Provided
sentence of subsection (b); and
101
of
further, That the Secretary is authorized to
(7) striking out "real property" each place
MESSAGE FROM THE HOUSE
Act
of
continue making such assistance payments
it appears in subsection (c) (2) and inserting
which
in lieu thereof "real or personal property".
A message from the House of Repre-
where the mortgage has been assigned to the
rate
Secretary"
SEC. 417. Section 1010(a) of the Demon-
sentatives by Mr. Hackney, one of its
221
(b) Section 236(b) of such Act is amended
stration Cities and Metropolitan Develop-
reading clerks, announced that the House
or
(C)
by striking out "Provided. That" and insert-
ment Act of 1966 is amended-
had passed, without amendment. the bill
pay-
ing in lieu thereof the following: "Provided,
(1) by striking out "and" at the end of
(S. 1888) to change the composition of
of
the
That the Secretary is authorized to continue
paragraph (2):
the Commission for Extension of the U.S.
prior
making such interest reduction payments
(2) by striking out the period at the end
Capitol.
or
where the mortgage has been assigned to the
of paragraph (3) and inserting in lieu there-
ecretary
Secretary: Provided further, That".
of "; and": and
the
lo-
(c) Section 223(d) of such Act is amended
(3) by adding after paragraph (3) a new
FOOD STAMP PROGRAM
pro-
by inserting the following new sentence at
paragraph as follows:
lease
the end thereof: "A loan involving a project
"(4) assure, to the extent feasible. in con-
Mr. MANSFIELD. Mr. President. I ask
body,
covered by a mortgage insured under section
nection with housing construction, any
unanimous consent that the Senate pro-
for-
213 that is the obligation of the Cooperative
major rehabilitation. and maintenance under
ceed to the consideration of Calendar No.
to
Management Housing Insurance Fund shall
programs administered by the Department
283, S. 2547. and that it be laid before
United
be the obligation of such fund, and loans
of Housing and Urban Development, that
the Senate and made the pending busi-
any
involving projects covered by a mortgage in-
there is no unreasonable restraint by con-
it
for
tract or practice against the employment of
ness.
sured under section 236 or under any section
at
the
of this title pursuant to section 223(e) shall
new or improved technologies, techniques.
The PRESIDING OFFICER. The bill
land
be the obligation of the Special Risk Insur-
materials and methods or of preassembled
will be stated by title.
the
ance Fund.
products which may reduce the cost or im-
The LEGISLATIVE CLERK. A bill (S.
tential
(d) Section 223(e) of such Act is amended
prove the quality of such construction. re-
2547) to amend the Food Stamp Act of
or
to read as follows:
habilitation. and maintenance, and therefore
1964.
the
"(e) Notwithstanding any of the provisions
stimulate expanded production of housing
The PRESIDING OFFICER. Is there
of this Act except section 212. and without
under such programs."
such
objection to the present consideration of
regard to limitations upon eligibility con-
which
Mr. TOWER. Mr. President, I move to
the bill?
tained in any section or title of this Act. the
Secretary is authorized, upon application by
reconsider the vote by which the bill was
There being no objection, the Senate
the mortgagee, to insure under any section or
passed.
proceeded to consider the bill.
of
title of this Act a mortgage executed in con-
Mr. SPARKMAN. I move to lay that
nection with the repair, rehabilitation, con-
motion on the table.
Sec-
struction. or purchase of property located in
THE CALENDAR
he
The motion to lay on the table was
an older. declining urban area in which the
the
conditions are such that one or more of the
agreed to.
Mr. MANSFIELD. Mr. President, I ask
of
eligibility requirements applicable to the
Mr. SPARKMAN. Mr. President, I ask
unanimous consent that the pending
section or title of this Act under which in-
unanimous consent that the Secretary
business be temporarily laid aside. and
38778
CONGRESSIONAL RECORD HOUSE
December 12, 1969
Decemb
velopment. I do not believe that HUD should
The Brooke amendment assures that
the House conferees, including Mr. WID-
be making money from our older citizens.
those who qualify for public housing need
NALL and his colleagues on the minority
the tragic
These are the people who have been working
pay no more than 25 percent of their
side, worked hard and effectively on the
housing u
for thirty or forty years and have usually
income for rent. And, I might add, this
legislation, too. As the ranking member
be elimina
been paying the bulk of the taxes. I believe
ceiling of 25 percent should not en-
of the Housing Subcommittee, I am de-
Mr. Spe
that at least in their retirement years they
should be able to receive a fair deal from
courage housing authorities to begin rais-
lighted to join in recommending this
compreher
conference report to the House and urge
and is of :
their government.
ing rents to that level. Seventy-five per-
Thirdly, my amendment would set income
cent of the tenants still pay less than
its adoption.
of public r
limits for tenents in a project. We would
25 percent.
One of the most troublesome problems
serves part
continue to use the criteria of 135% of
with our a
In connection with public housing, Mr.
we confronted in the conference had to
that which is required under the public
Speaker, we were especially concerned
do with a Senate amendment dealing
report. Th
housing program. However, we would set up
about the incidents of mismanagement
with public housing. The Senate had
priate par:
a second category which would state that
the
ag
the tenant's income shall not exceed 85500
in local housing authorities that have
proposed adding $75 million to the an-
entitled "A
for a single person and $6600 for a couple.
been reported. High operating costs, and
nual subsidy for public housing to enable
Income Te:
I feel that this ceiling is adequate for the
deteriorating conditions due to ineffi-
housing authorities with a high per-
ADDITIONAL
elderly and it guarantees that only those
cient or lax management cannot be
centage of very low-income tenants to
elderly persons who cannot provide for
tolerated.
reduce rents to a level of 25 percent of
themselves are allowed to obtain housing in
The Senat
On the other hand, there must be a
income. The amendment was well-in-
these projects.
in the House
greater degree of tenant responsibility
tentioned, because the poorest people in
Fourthly, there are no objections from any
tion 24 to
as well. Irresponsible tenant behavior
the projects were often required to pay
source concerning changing the income veri-
authorizing
fication section from two years to every five
jeopardizes the future of this program
the highest percentage of their income
contracts for
years or at such other times as the Secre-
and therefore must be corrected.
for housing-much more than welfare
s to pu
tary shall determine.
There are other amendments I would
families in many jurisdictions could af-
the amount
I would appreciate your giving considera-
call to the Members' attention. In the
ford unless they received food stamps to
cated to a
tenant's inc
tion to my amendments. I know that the
urban renewal program, the provision ex-
enable them to eat a nearly adequate
operating and
Department is opposed but I feel that you
tending the period of eligibility for non-
diet-and the food stamps are not ye:
the E
might be sympathetic to my position in
cash grants-in-aid by 1 year is an espe-
available in every jurisdiction-these
light of the fact that you are the author of
(sec. 210(a))
cially important one. It reflects the delays
people had a "Hobson's choice" of either
making it cl
the 202 section of the Housing and Urban
Development Act of 1959. Also, I feel very
and problems encountered by HUD in
purchasing housing and very little else.
has authority
strongly that my amendments are needed
connection with the neighborhood de-
or purchasing food and living in un-
ributions
in light of the expenses of the different
velopment program. It has taken about 1
imaginable slums.
quirements o:
It has been the policy of Congress for
contribution
groups being forced to convert from the
year to understand the problems inherent
annual maxir
202 to the 236 program.
in the program, and this amendment rec-
years that low-income tenants in pub-
The Confe
Any assistance you could be to me in
ognizes that fact, and attempts to deal
lic housing not be required to pay more
basic concept
this matter would be sincerely appreciated.
with it so that local communities will
than 20 percent of their income for
bill by genera
Very truly yours,
not lose what they are entitled to.
shelter. But many housing authorities
charged publi
BEN B. BLACKBURN,
Member of Congress, Fourth District,
Another amendment I am particularly
found it impossible to conform to this
than 25
Georgia.
happy to support, and strongly, is the
standard, particularly as more and more
Federal funds
one providing $150 million for the elderly
of their public housing families came
the appropriat
(Mrs. DWYER (at the request of Mr.
housing program, section 202.
from the lowest income levels-on wel-
cent of the inc
WIDNALL) was granted permission to ex-
the cost of ad
This 202 3-percent program has been
fare. Minimum rents in public housing
21
services
tend her remarks at this point in the
highly successful, and popular, especially
in St. Louis and elsewhere eventually rose
The
RECORD.)
!ere
because it involves local nonprofit groups
to a level of 50 percent or more of their
that in B num
Mrs. DWYER Mr. Speaker, this year's
in sponsoring the housing. It is one with
total income. Even with food stamps,
fits of limiti
housing bill is a collection of various
which I associated myself in the legis-
the welfare families in our public hous-
charged a ten
amendments to existing housing and ur-
lation of 1956 and to which I then, as
ing projects have found it impossible
not inure to t
ban development programs. The spend-
now, gave strong support.
to approach a minimum standard of
welfare assists
ing authority is in the billions, but in
Last year, when we were passing the
living for survival. Yet, despite the high
by the public
light of the pressing needs we face in
interest-subsidy program, section 236,
rental levels which the housing author-
programs of as
our urban centers, it can be little else.
The confered
we gave HUD authority to convert the
ity had to impose in order to meet op-
of attempting
It is a 1-year bill. as the House preferred.
202 projects into 236 projects. We did so
erating costs, the authority has been in
public housing
We intend to keep the administrative
because this took a Government-loan
serious financia) jeopardy, heading to-
to make adequ:
nose to the grindstone by coming back
program into private-loan program in-
ward bankruptcy. Finally, the authority
vided by the ,
next year.
volving smaller amounts of the subsidy.
acceded to community demands to re-
therefore. have
This year, we also have a housing bill
However, when we did so, we intended
duce rents to the 25-percent level.
ment that the
agencies
which is mostly, and emphatically,
only for this authority to be used when
The House-passed bill had a provision
,
and if the sponsors wished. HUD misin-
in it intended to help ameliorate this
tenant's incom
amendments arising from within the
in which the E
Congress. There are the extensions of
terpreted the conversion feature and be-
problem authorizing additional subsi-
that limiting the
basic HUD programs and a few HUD
gan requiring all 202 sponsors to con-
dies to housing authorities to help meet
of tenants. will
amendments. But the real Romney pro-
vert automatically, whether or not they
part of their operating deficits. The Sen-
amount of wel
gram has yet to come. It will arrive
wanted to.
ate amendment, which went further by
otherwise be p
shortly.
We intended this authority to be purely
specifying a $75 million added subsidy.
class of tenants
This year's bill, therefore, reflects the
voluntary. We insist on that position to-
promised much but actually provided
The conferees
work of the Congress. And some of the
day, in the managers' statement, and I
little, for, according to the information
ing practice of 6
changes we are making in ongoing pro-
strongly support that position. We like
I obtained from the Department of
fare budget by
increasing num
grams are highly significant.
the 202 program: we have authorized an
Housing and Urban Development, none
pay even the (
For instance, Senator BROOKE intro-
additional $150 million for it, and we
of the funds included in that Senate
they occupy. Th
duced an amendment substantially alter-
want the conversions to occur on a purely
provision would have helped St. Louis
within the cont
ing the character of the public housing
voluntary basis.
or any other public housing authority
some means can
program. Ten years ago, in 1959, when
I urge our colleagues to approve the
which had already reduced rents to a
support for a We
we revised that program in the name of
conference report.
maximum of 25 percent.
Ing as would be
local autonomy, we had no intention of
Mrs. SULLIVAN. Mr. Speaker. first I
In conference, we worked out new
private housing
allowing local public housing authorities
want to express my appreciation to the
language which will benefit all housing
of HEW and HU
to charge higher and higher rents to the
chairman of the Subcommittee on Hous-
authorities unable to meet operating
fassibility of de
poor people as a means of avoiding bank-
costs out of rental income. But this 15
concerning the I
ing, Mr. BARRETT, and to the chairman
not an automatic grant of funds merely
public housing f
ruptcy. Yet, the much higher costs of
of the full Committee on Banking and
from public
today are no longer able to be financed
Currency, Mr. PATMAN, for the excellent
because an authority is in fiscal trou-
The conference
out of rental income and in many cases
leadership they have provided in work-
ble. The authority must take necessary
valons on secti
public housing rents now greatly exceed
ing out the details of this very important
steps to upgrade management policies
authorized
tenants' ability to pay.
and comprehensive housing bill. All of
to assure tenant responsibility, so that
rental assists
December
12,
1969
CONGRESSIONAL RECORD-HOUSE
38779
tragic specter of vandalized public
section 24, on the basis that assistance for
through provisions such as the supplemen-
units and of whole projects can
this purpose can be provided within the
tary 810 per month provided for the elderly
existing annual contributions framework as
and handicapped and for families of very
climinated.
clarified by the bill, and transfer the 875
income and for large families. The conferees
Mr. Speaker, the conference report is
million to the authorization for annual con-
wish to make it clear that nothing in this
de
imprehensive and explicit on this point,
tributions contracts provided under section
or any other section of this bill is intended
this
IS of such importance to the future
10(e) of the U.S. Housing Act of 1937.
as a substitute for such existing authorized
urge
housing that this language de-
The conferees intend that the Secretary's
contributions. The additional $75 mil
particular emphasis in connection
authority to make annual contributions in
authorized by section 211 of the Senate bill
our consideration of the conference
excess of debt service requirements may be
is being provided as additional annual com-
used, to the extent that the statutory an-
tributions contract authorization specifically
to
Therefore, I submit the appro-
nual maximum permits, for (1) payments to
for the payments contemplated above.
paragraphs of the Statement of
cover existing operating deficits of public
had
Mr. ANDERSON of California. Mr.
managers on the part of the House,
housing agencies and enable them to main-
an
Additional Aid for Very Low-
Speaker, I rise in support of the confer-
tain adequate operating and maintenance
Tenants." as follows:
services and reserve funds, and (2) addi-
ence report on the Housing and U1 1
per
ADDITIONAL AID FOR VERY LOW-INCOME
tional payments to make up the amount
Development Act of 1969. I commend the
to
by which the proportionate share of oper-
gentlemen of both Houses for their fore-
TENANTS
of
ating and maintenance expenses attributable
sight by including insurance for losses
Senate bill contained a proivsion not
to a public housing tenant's dwelling unit
from water-caused mudslides in the
House amendment adding a new sec-
exceeds 25 percent of the tenant's income.
in
24 to the U.S. Housing Act of 1937
flood insurance program.
The additional payments which are con-
pay
up to $75 million per year in
Mudslides, resulting from accumula-
templated in clause (2) above may not be
for annual rental assistance pay-
made with respect to a dwelling unit un-
tions of water on or under the ground.
to public housing agencies to cover
less the rent paid for the unit 18 one-fourth
have been particularly distressing to res-
af
amount by which rental charges allo-
of the tenant's income and such payments
idents of California. The damages ca
to a unit exceed 25 percent of the
to
shall not be provided to make up any re-
by mudslides have been great-creating
Income and to provide improved
duction in the amount of welfare assist-
personal hardships and economic dis-
and maintenance services.
ance which is provided to a tenant.
tress to the victims of this unforeseen
yet
Both the Senate (sec. 206(a)) and House
The committee is deeply concerned over
disaster.
210(a)) bills also contained a provision
cases of lax management in many public
ither
It clear that the Secretary of HUD
Many factors have made it uneconom-
housing projects which have led to high
else
authority to fix the amount of annual
ical for the private insurance industry
operating costs, deterioration of property,
un
in excess of debt service re-
and an intolerable environment for the fam-
alone to make flood insurance available
parements of the project so long as the fixed
illes who live there. Among the reasons
on reasonable terms and conditions to
for
does not exceed the statutory
given to the committee to demonstrate the
those in need of such protection.
annual maximum.
pub-
need for additional subsidies for existing
Under this act, the Federal Govern-
The Conference substitute retains the
housing projects, a sharp increase in vandal-
ment, in cooperation with the private
nore
concept of section 211 of the Senate
ism was frequently mentioned together with
for
insurance industry, will provide a pro-
Mill by generally limiting rents that may be
a sharp increase in crime which has driven
gram of pooling risks, minimizing costs
enarged public housing tenants to no more
many occupants out of the projects. Much
this
25 percent of their income. It provides
of the blame for these conditions lies with
and distributing burdens equitably
Federal funds to cover the amount by which
project managers and local government offi-
among those who will be protected by
appropriate rental charges exceed 25 per-
cials. Too frequently individual projects have
flood insurance and the general public.
wel-
of the income of the tenant and to cover
filled up with problem families to the ex-
I have long felt that the need for this
cost of adequate operating and mainte-
clusion of others with resulting vacancy
program exists. With the lessons learned
nance services.
rates which have caused local budget
from the flood insurance program, I hope
rose
The conferees were concerned, however,
deficits.
their
that the Congress would see fit to ex-
that in a number of jurisdictions the bene-
The low-rent public housing program has
tend the program to include earthquake
of limiting the rent which may be
a fundamental role to play in meeting the
charged a tenant of public housing would
needs of low income families and a special
insurance, such as I have proposed in
importance in making possible urban re-
H.R. 14781.
not inure to those tenants receiving public
of
welfare assistance, but would be captured
newal and other programs which result in
Again, I commend the gentlemen of
the public agencies administering the
displacement. It would be disastrous if the
both Houses for recognizing the need of
programs of assistance to these families.
small but growing number of cases of mis-
this program and for taking swift action
management undercut the program by giving
in aiding in the alleviation of a portion
op-
The conferees realize the impracticability
in
attempting to provide through additional
rise to public reaction against them and by
of the distress caused by floods and mud-
housing subsidies the funding needed
driving out responsible families of low in-
slides.
to-
make adequate the welfare payments pro-
come. HUD should undertake promptly a
review of its own local management guides
Mr. RYAN. Mr. Speaker, if I may, I
by the various States. The conferees,
re-
therefore. have made clear that the require-
with a view toward tightening them where
have several comments on the confer-
that the rents fixed by public housing
necessary. At the same time it should make
ence report on S. 2864, the Housing and
agencies may not exceed one-fourth of a
its own inspection and review of local prac-
Urban Development Act of 1969.
this
enant's income shall not apply in any case
tices to assure that project managers know
Included in the report is the amend-
which the Secretary of HUD determines
the standards expected of them and fully
ment offered by Senator BROOKE, which
hat limiting the rent of any tenant, or class
enforce their own regulations. Project man-
provides public housing to tenants of
tenants. will result in a reduction in the
agers who do not enforce these standards are
very low income who would otherwise
Sen-
amount of welfare assistance which would
not doing the job expected of them by the
not be able to afford it.
by
otherwise be provided to such tenant, or
Congress.
class of tenants. by the public agency.
The conferees wish to make it clear that
Seventy-five million a year is author-
The conferees are disturbed by the grow-
the benefits of subsidized public housing,
ized for annual rental assistance pay-
practice of stretching an inadequate wel-
including those provided by this section, can-
ments made by the Secretary to make up
budget by placing in public housing
not be achieved without tenant responsibil-
the difference between the tenant's rent
of
increasing numbers of families who cannot
ity. including responsibility for the protection
and the amount of money necessary to
even the operating costs of the unit
and care of property. Irresponsible tenant
operate the project-including better
occupy. The conferees are hopeful that
behavior jeopardizes the future of this pro-
operating and maintenance services.
the context of the welfare program.
gram and cannot be tolerated.
means can be found to provide as much
The conferees do not intend that all ten-
Unfortunately, the conferees did not
a
upport for a welfare family in public hous-
ants in public housing should pay 25 percent
include my amendment, which was
as would be provided for that family in
of income for rent. Prior to the enactment of
adopted on October 22, 1969, when the
housing. Accordingly, the Secretaries
the Housing Act of 1959, giving local author-
bill was before the House to lower from
HEW and HUD are requested to study the
itles autonomy over this and other tenant
25 percent to 20 percent the part of the
(casibility of developing a uniform policy
relationships. Federal law set as a rule that
tenant's income that is spent for rent in
concerning the rents which shall be paid in
rents in public housing should be no more
the section 236 program and in the rent
is
housing for families whose rents come
than one-fifth of income. Regrettably, up-
supplement program.
ward pressures on local authority costs have
public assistance.
forced cities to raise rents. The Congress has
The section 235 program allows the
The conference substitute deletes the pro-
on several occasions provided special addi-
owner of a private home to pay only 20
on section 211 of the Senate bill
tional payments to maintain the low-income
percent of his income, and he also re-
authorized $75 million in contracts
character of public housing projects to meet
ceives a tax deduction on the interest
that
rental assistance payments under a new
the basic financial needs of local authorities
payments he makes.
CXV-2442-Part 29
38780
CONGRESSIONAL RECORD-HOUSE
December 12, 1969
Dec
But the section 236 renter not only
The Chairman recognizes the gentle-
structive approach taken to date toward
see it
receives no tax benefit, but also he is
man from Kentucky.
solution of the problems of the poor.
indire
forced to pay 25 percent of his income.
Mr. PERKINS. Mr. Chairman, I yield
Five years is but a little time for an
Stil
The same situation applies to the rent
myself 15 minutes.
undertaking so broad. The remarkable
in fr
supplement program. Rents are high.
Within the last few hours, opponents
thing is not that the goals we estab-
with
and large families have to pay rents they
of H.R. 12321, the Economic Opportunity
lished are yet unreached. The marvel
effect
cannot afford. My amendment would
Amendments of 1969, have produced a
is that OEO has made any discernible
The
have lowered the part of the person's
second version of their substitute bill.
progress at all-and it has certainly
ply W
income to be paid from 25 percent to 20
I might as well make it clear from the
done that.
But t
start: This second version is as odious as
Let us look briefly at the record of
percent.
State
It is inequitable to require city
the first.
accomplishment over the past 5 years.
by las
dwellers who rent their apartments un-
Neither can be accepted by those of us
OEO, in the first year of its existence
stitut
der the section 236 program or the rent
who believe that the effort upon which
was the initiator of the Headstart pro-
week
supplement program to pay more than
we embarked in 1964 is worthwhile.
gram. That program has now served
Nov
they can afford. Like the section 235
Both versions strike at the heart of the
more than 3.3 million of the country's
that,
homeowners, they are affected by the
economic opportunity programs. Both
neediest children, and has provided new
stitut
are calculated to destroy the concept of
employment and training opportunities
high cost of living.
painf
I regret that the conference commit-
community action-the most creative
for over 100,000 people. It is accepted
and 1
tee did not see fit to include this in their
and innovative development in American
everywhere as a great step forward in
varia
package. Unfortunately, the problem
Government in our generation.
the handling of the problems of child
to sed
still exists. And sooner or later the Con-
In its short life, the Office of Economic
development.
No.
gress will have to correct it.
Opportunity has been the birthplace of
OEO was also the initiator of the legal
that
Mr. PATMAN. Mr. Speaker, I move
a substantial number of programs which
services program. Under that program.
in th
the previous question on the conference
are now well established and accepted on
nearly 2,000 lawyers are now providing
mitte
report.
both sides of the aisle of this House.
legal assistance to over 800,000 poor
lation
The previous question was ordered.
This is not to say, of course, that it
people a year.
leased
The conference report was agreed to.
has been without blemish. Twice, in 1966
OEO also developed the Upward Bound
24 ho
A motion to reconsider was laid on the
and 1967, the Committee on Education
program. That program has enabled 50.-
consi
and Labor and the Congress itself acted
000 young men and women to prepare
table.
It 1:
to rectify faults that became apparent as
themselves to enter college-young men
vised
the new machinery settled into its work.
and women for whom college would not
of sig
GENERAL LEAVE
It had been my hope that, much earlier
otherwise have been possible.
busied
Mr. PATMAN. Mr. Speaker, I ask
in the year, we could lay before this
OEO began the Foster Grandparents
Thi
House a bill to extend the basic legisla-
program, under which 3,000 of the elderly
unanimous consent that all Members
ticula
tion, and to provide for such construc-
poor have been given opportunities to
may have 5 legislative days during which
far re
to extend their remarks on the confer-
tive amendments as were necessary to
earn money by helping institutionalized
The
insure the orderly operation of the OEO
children.
ence report on S. 2864.
tute-
programs.
OEO also developed comprehensive
The SPEAKER pro tempore (Mr.
a disa
But, Mr. Chairman, events have ren-
health centers. Today 49 of these centers
DAVIS of Georgia). Is there objection to
has u
dered that procedure both impossible
are bringing comprehensive medical
the request of the gentleman from
legisla
and useless.
care to 300,000 poor.
Texas?
Today we are obliged to concentrate
OEO's programs for American Indians
The
There was no objection.
have begun to move us away from the
in two
our efforts not so much on perfecting the
patronizing paternalism which has so
It
operation of OEO, as simply on saving
its life.
long characterized the Federal relation-
mash
ECONOMIC OPPORTUNITY ACT
For there is no blinking at the fact
ships with the Indian tribes.
and f
AMENDMENTS OF 1969
OEO has funded some 2,800 neighbor-
tal-t
that in carrying out the directives given
Mr. PERKINS. Mr. Speaker, I move
hood service centers. These centers
that 1.
to it by Congress, the Office of Economic
that the House resolve itself into the
Opportunity has made enemies. That is
bring needed social services, or reliable
beings
Committee of the Whole House on the
one measure of its success.
information on where to get them. to
proble
nical 2
State of the Union for the consideration
Those enemies have a goal toward
some 3,500,000 low-income persons.
of the bill (H.R. 12321) to provide for
which they have pushed since the day
And, OEO's income maintenance ex-
plies 1
the continuation of programs authorized
OEO's potential was first recognized.
periments, universally regarded as rep-
All
That goal has been and is the complete
resenting the best of experimentation in
Johnn
under the Economic Opportunity Act of
1964, and for other purposes.
destruction of the agency and its major
handling the problems of poverty, were
latest
The SPEAKER. The question is on
programs.
the forerunner of President Nixon's pro-
cepts 1
"parti
the motion offered by the gentleman
I do not say that it is the goal of those
posals in the welfare area.
from Kentucky.
In the manpower area, as well, great
and "I
who support the substitute measure to be
The motion was agreed to.
put before us. But I would caution my
strides have been made in the 5 years of
nity p
We
The SPEAKER. The Chair designates
colleagues to look carefully at the prob-
the poverty program.
Two and one quarter million youths
substit
the gentleman from New York (Mr.
able consequences of a successful effort to
ROONEY) as Chairman of the Commit-
pass the substitute. I place my confidence
from low-income families have been en-
struct
tee of the Whole, and requests that the
in the hundreds of community leaders
rolled in the Neighborhood Youth Corps.
destro
gentleman from Illinois (Mr. ROSTEN-
Private industry has received support
In e
across this country who have indicated
KOWSKI) temporarily assume the chair.
their belief in the strongest possible terms
to train nearly 270,444 hard-core unem-
the W
that the substitute spells disaster for
ployed or underemployed adults in the
progra
IN THE COMMITTEE OF THE WHOLE
States
Accordingly the House resolved itself
their local efforts.
JOBS program.
Approximately 70,000 people are en-
State
into the Committee of the Whole House
If this effort to substitute succeeds,
on the State of the Union for the con-
Members of this House may just as well
rolled in comprehensive employmen:
that is
a stra
sideration of the bill H.R. 12321, with
say goodbye to a coordinated national
programs.
Nearly 37,000 older persons from sev-
local I
Mr. ROSTENKOWSKI (Chairman pro tem-
effort to better the economic lot of the
poor. We shall not have to waste more
erally distressed rural areas have ob-
The
pore) in the chair.
breath in talking about "community ac-
tained jobs and training through Oper-
substit
The Clerk read the title of the bill.
bridled
By unanimous consent, the first read-
tion" or "maximum feasible participa-
ation Mainstream.
ing of the bill was dispensed with.
tion of the poor." We shall not have to
And. 10,000 poor have found opportu-
tives o
say any more about "local determina-
nities for advancement in the New Car
or cap
The CHAIRMAN pro tempore. Under
The
the rule, the gentleman from Kentucky
tion" or "local initiative."
reers program.
Despite this record, some in this House
live, 1
(Mr. PERKINS) will be recognized for 1½
A vote for this substitute will have said
hours, and the gentleman from Ohio (Mr.
it all. And, the Congress will have turned
would kill OEO outright, and have the
would
AYRES) will be recognized for 1½ hours.
its back on the most innovative, con-
courage to say so. Others would like 15
nors, b
ernors.
states, and they have struggled hard in
gives both sides of the abortion issue
ige project,
common cause to enact protective
to be race-i
the past few years to raise grapes in
difficult climates and earn consumer
health laws ["2 Tragedies Raise
more descript
Doubts About Suitland Clinic," front
That is m
respect for their local product. It takes
page, Aug. 13]. The article made the
it is reinfor
10 to 12 years before most farm win-
eries begin turning a profit and most
public aware that even if abortions
days ago ind
are supported by family jobs outside
are legal, lack of regulation could turn
al of its COV
Maryland's "Main Streets" into "back
nately, is of
the farm.
alleys."
based solely
These administration measures will
JIM KOLB
the District'
decrease U.S. competitiveness in the
Rockville
overwhelmirs
Baldin says
world market, strongly favor large pro-
ducers over small (eliminating Mom and
The writer is Susanne Logan's attor-
2 million sul
had little
Pop operations) and make table wine
ney in her suit against Hillview.
Virginians ai
n relations
up the bulk
and who ai
Germany.
were not sol
tural foun-
The Turnaround at HUD
It was an
n lost and
perhaps, feel
er to pur-
Gwen Ifill's coverage of a congres-
homelessness a major goal of this
or apprehe
llinburg in
sional hearing on federal surplus
administration.
about the I
property disposition ["Plan to Aid
According to the General Account-
black audier
Germanys.
Homeless Is Lagging," news story,
ing Office, not only have programs
white approv
t of bomb-
July 20] was more mystifying than
been expanded and improved at HUD
he Louvre
illuminating. Neither comments nor
and throughout the administration,
the coun-
facts are placed in an appropriate
but interagency coordination has
of taking
context, giving the impression that
vastly improved the federal govern-
the federal government is cutting
ment's ability to address the multiple
The W
eces for a
funding for homeless programs and
needs of the homeless in a compre-
EUO
eacted not
lagging seriously in fulfilling its re-
hensive fashion. The GAO just com-
PHILI
liverting it
sponsibilities in making surplus feder-
pleted a report on the Interagency
D
esses here
al property available to providers for
Council on the Homeless, which I
BENJAMIN C. BR
ught back
the homeless. And to cap it all, the
chair. It was a follow-up to a GAO
Executive Editor
e postwar
director of a charitable organization is
report on council activities under the
LEONARD DOWN
erable art
the "expert" who "knows" what the
last administration. The Post gave
Managing Editor
PE
day have
government's intentions are. I won-
extensive coverage to that original
De₁
sion, since
der why no one from the Department
report, when it seemed the GAO had
TH
of Housing and Urban Development
not one good thing to say. Now, under
Preside
ng system
was asked?
the Bush administration, the GAO
generally
NICHOLAS CANN
We in the Bush administration
evaluation of the council notes that
FJ. HAVLICEK
ay's redis-
asked for $819.1 million for McKin-
not only has it become effective in
BOISFEUILLET J.
ELIZABETH ST J
ame, with
ney Act homeless programs in its
meeting its congressional mandate,
THEODORE C. LU
THOMAS MIOH
med to be
1991 budget, 72 percent above 1989
but that essentially the same state
VINCENT E. REED
gh sketch-
funding levels. HUD's McKinney
officials and assistance providers the
DONALDS RICE
MARGARET SCO'
1 the past
funding has jumped 148 percent. Oth-
GAO had surveyed for its last report
RALPHS. TERKO
e, we can
er programs targeted to the homeless
were now basically satisfied with
Published by
bring the total commitment to close
council services. Quite a turnaround
herge and
KA
to a billion dollars, and that is on top
in one year!
Ch
xploration.
of other housing, health and social
JACK KEMP
RIC
Europe, it
service initiatives. President Bush
Secretary of Housing and Urban Development
and I have made ending the tragedy of
Washington
1150 15th St. NW-W
Washington Post 8/19/90
THE WASHINGTON Post
George F. Will
4/11/91
Hol
Mario Cuomo: Passionately Out of Style
G
ALBANY-Mario Cuomo, who has always
politician soon "will wear epaulets and a saber.
Cuomo, like many other Democrats, may find
aspire to seediness. Were Cuomo to be a candi-
had both the mournful countenance of a basset
There definitely will be a saber in the cam-
that hard. Opposition to the use of force in the
date, his problem would not be that there is
M
hound and the serrating bite of a Doberman, is
paign." But, he adds, Democrate are not really
Persian Gulf in January is intellectually defensi-
Willie Horton-a richly symbolic embarrase-
feeling frisky but not friendly. His famous fluen-
vulnerable to the brandishing of military sym-
ble, but the political chore of making that defense
ment-in his record. Rather, his problem would
cy, always the product of genuine passions, is
bols. is, he asks, the crucial criterion a willing-
may be incompatible with the need to conduct a
be that New York City is 8 Willie Horton: scary.
the primary reason many Democrate want him
ness to wage war? Fine. "Democrate were good
forward-focused presidential campaign.
to ne for president. But the nature of his
at that. Roosevelt was no shirker. Truman
The condition of most states is, if not scary,
O
Cuomo disagrees. He is in his third term and
passions today may prectude that.
dropped the bomb.
depressing. There has been, he says, "a double
ninth year as governor and knows how long 18
He is 8 men emphatically, and with a kind of
But "were," "wain," and "dropped" are in the
redistribution of burdens and wealth." Tax cute
months can be in politica. While he was speaking
benefiting the affluent have, he says, coincided
The
grim exuberance, out of emotional synch with
past tense. Besides, what be clearly believes, with
last week about epaulets and war, the farce in
an urgency that defies disguising-not that he
with cuts in federal support for social programs.
a.
the country. For now. He believes the country's
Kuwait (the emir thinking about thinking about
emotional high from the war-a high he seems
taking mincing steps toward democracy, sort of,
These cuts now coincide with a recession, and
the F
shows the slightest inclination to disguise it-is
to find as disturbing as the war-is perishable,
that the war tapped a dark atavism in America.
soon, or sometime, "God willing") was counter-
this forces states into increased reliance on
and indeed is perishing as he speaks.
We are "good at killing." even, he intimates,
point to the tragedy unfolding in Iraq.
regressive sales and property taxes.
with
comfortable with killing. When the president
On the graph of national serenity, two lines
Recalling that in his first state-of-the-state
the n.
"You," says Cuomo, master of the
turns his attention to the domestic agenda, what
message less than a decade ago he did not need
Fed
antecedent-lees pronoun, "are great killers in
may be about to cross. One is the descending
the desert. You believe in the death penalty."
leads the list? A crime bill featuring expanded
line tracing the diminishing emotional returns
to deal with AIDS or the homeless, he says, "We
the 1.
Perhaps he means the president, or the current
uses of the death penalty.
from the victory celebrations. The other line
must share our wealth in ways we have been
force
national consensus. But there is no ambiguity
reluctant to do."
Volck
The Democratic Party, he says, owes the
traces the rising revulsion about the chaos,
about whom be is talking about when, in a tone
country "a fight on ideas," and finding ideas
disease, starvation and death that is not really
All this is at least arguable. But before it can be
porte
of mingled wonder and disgust, he notes that
better than the president's "should be easy." An
surprising, even in the aftermath of a war
argued, the country must change the course of its
ers,
the president even appeared on tape during the
administration that can find half-a-trillion dollars
Ther.
waged to enhance peace and stability.
current conversation. Is Cuomo fluent enough to
telecast of the NCAA basketball championship,
for the S&L cleanup but can't find relative
To the rest of the country, the condition of
do that? Probably not. But on the 500th anniver-
contr.
talking about Desert Storm. "He can't stop
pocket change for fighting drugs
Cuomo's realm, New York State, is indistin-
sary of Columbus's voyage, he might enjoy being
has b
talking about it!"
But before you can change the nation's mind,
guishable from the condition of New York City,
the first Italian American to contest for the job of
Gr.
Cuomo says, facetiously but acidly, that some
you must change the topic of conversation. And
which is 90 far down at the heels it can hardly
setting the nation's public agenda.
been
edges
within
Jack Kemp
sees
pared
Democrats' Double Talk on Affordable Housing
Ma
gover
and 11
"They cling to programs that transfer income, not assets, to the poor.
Bank
under
While the Democratic Party acknowledges
to become homeowners; HOME, a flexible
Arthu
President Bush's brilliant victory over Saddam
block grant for states and cities to meet their
"Gang
Hussein, it is also trying desperately to claim
affordable housing needs, and Shelter Plus
Angel
that his administration lacks a domestic agen-
Care, which ties housing for the homeless with
a
mo.
da. Democratic National Chairman Ron Brown
health care and supportive services in place.
guidin
said recently that the administration has "ab-
The president asked Congress to pass a budg-
De:
solutely no program at all" for housing and
et-neutral supplemental to provide funding for
over,
other domestic concerns. One newspaper re-
these new programs in 1991.
ported that Democratic Party aides are look-
The House considered the president's re-
other
ing forward to a period of "Bush-bashing" on
quest first, and the Senate recently completed
which
domestic policies, including housing. A recent
its deliberations. More than 85 percent of the
So
vote in Congress, however, proves that it is
Democrats in each house voted "nay."
agree
the Democratic Party that is intellectually
Yes, you read that right. When the president
and
bankrupt when it comes to meeting the press-
proposed to initiate a bold, innovative approach
The
ing domestic needs of our nation.
to address the nation's severest housing
ones
Less than one year ago, Congress over-
needs-an approach that passed Congress al-
move
whelmingly passed the National Affordable
most unanimously less than a year before-
rate
Housing Act. One leading senator said that "it
Democrats rejected it overwhelmingly. Why?
whetl.
is time for us to act on this issue right now.
Their answers are particularly disturbing.
without
We have been going now for years and years
Some claim that the low-income Americans
Fed.
and years without an adequate response to the
are "not demanding to be empowered"
Gre
housing needs of this country." Another ac-
through homeownership. Others say that the
admin
knowledged Senate leader on housing policy
states, cities and nonprofit organizations that
drive
said the programs authorized by the new bill
worked for years to pass this legislation are
after
represented the "best thinking" on the issue,
unequipped to make it work. Some housing
Many
and would "trigger a tremendous commitment
advocates say we "shortchange the beneficia-
should
to address this pressing national need." A
ries" of programs by shifting a modest amount
year
top Senate liberal said that in passing the act,
of funding from public housing construction
count
"we begin to chart a new course in housing
program into the HOME block grant. But
In
policy-one that is long overdue
We have
HOME would help 37,000 families within 18
Green.
a housing crisis in America, and it is about
months, compared to only 7,000 units of
tight-i
time that Washington, working with states,
public housing that would be built five years
was 11
local governments, the private sector and
from now under current law. When public
Fed-
nonprofit OI ganizations began to solve it."
housing has more than 100,000 vacant units
cession
GRESON
President Bush signed the National Afford-
that now go unused by anyone except drug
that 1,
able Housing Act in November 1990, saying it
dealers, it is hard to justify building more.
economic freedom. They claim, in the words
something real to help. They want to launch
eviden
would give "poor people control over their
The fact is that when they had the chance to
of one Democratic member of Congress, that
new initiatives to help thousands of low-income
econoi
own lives and access to property and jobs, so
low-income people "aren't ready" for home-
families achieve decent housing and homeown-
appropriate funds for programs they had voted
is war
that all Americans can live a life of dignity,
ownership. But it is really the Democrats who
ership when their vote means little, but when it
for in theory less than a year before, the
A
responsibility and economic opportunity." The
Democratic Party rushed instead to the de-
are not ready to break with the old programs
really counts they vote to preserve programs
Bank
Department of Housing and Urban Develop-
fense of the failed programs of the past. They
and the entrenched special interests and bloat-
that create only dependency and despair.
ing int
ment and the Office of Management and
ed bureaucracies that go with them.
Congressional Democrats revealed that
cling to programs that transfer income, not
see. 1
Budget worked at a record pace to get the
they think tomorrow is the best time to help
assets, to the poor. Low-income families re-
The Democratic leadership in Congress ex.
price SI
regulations needed to implement new pro-
the poor. President Bush wants to help today.
ceive just enough aid to lock them in perpetual
cels at making rhetorical bows to the poor, but
ger gr
grams like HOPE, which provides opportuni-
dependence and despair, but never the incen-
the leaders raised their voices and wielded
The writer is secretary of housing and urban
plained
ties for low-income residents of public housing
tives or the property needed to achieve full
development.
that Go
their votes in opposition when asked to do
reducin
ings. B
nimity
Richard Cohen
this Wt
Michael Kinsley
continu-
Over
The Dagger at Nancy Reagan
have de
Coverup
embodi
power.
ernors
And the press's betrayal of its own standards.
Reagan's hair as a metaphor for the 1980s.
But Gr.
has bee
Those of us who are fans of Frank Sinatra
(and distinctly not fans of Nancy Reagan) were
There is no entry on "hair" in the index to Lou
At this point a sec.
utilized
shocked by Kitty Kelley's assertion that Old
Cannon's fat new book on the Reagan presidency.
and theme started to
member
Blue Eyes and the former First Lady had an
Nor in Reagan's own recent autobiography. So we
emerge: Reagan is
Any
affair. Some of us, though, are even more
must rely on Kitty Kelley. The index of her "Nancy
starting to turn gray. In
vote. E
shocked that much of the press, including the
Reagan: The Unauthorized Biography" contains
May 1982 The New
proach
august New York Times, uncritically recounted
four citations on Ronald Reagan's hair. And under
York Times reported
others.
"Reagan, Nancy Davis, hardressers of," the cita-
that Senate majority
waited
Kelley's tales. After all. whatever Kelley might
tions go on for three lines. The key reference is on
leader Howard Baker
before
be, she's no unimpeachable scholar.
my "Whepever he visited the White House
"had noticed some gray in Mr. Reagan's hair
la
tive sources, this could be
readers won't continue to
Kevin Roderick's article "State's Growth
growers have sacrificed 1
Threatens Way of Life in Rice Town"
of acres to help out W
(front page, April 7) is in actuality more an
already, yet The Times W
editorial than reporting. Unhappily, the
how other bigger agricu
article is one more in a string of unsubstan-
users of water have sac
tiated attacks on California's rice industry.
c) with the exception C
We have informed The Times' editorial
columnists (Marc Reisner
staff and several of its reporters, both
Times remains the only n
in the nation to never re
straight about rice grow
causing us to believe th
Affordable Housing
poseful intent here, and
knows full well that the SI
Jesse Jackson's column (April 9) is so
to be fashioning betwee
absurd that I have to believe he neither
urban interests and rice
wrote the article himself nor saw it before
cious; there is plenty of W
it was published.
uses in this state. The iss
Jackson claims that "HUD's houses often
segments of agriculture
remain vacant for three yeas or more" and
water in drought years.
that "less than 1%" are used to help the
Rice growers have bee
homeless. The facts are a little different:
if not the only, water us
the average HUD home stays vacant for
governor and the Depai
only six months, and up to 10% are used to
Resources that its indust
help homeless Americans. The majority of
in meeting urban and em
houses must be resold to maintain the
mental water needs. We'll
financial health of the Federal Housing
er, it is getting difficult to
LA Times
Administration (FHA) fund, which pro-
agreeable to this commit
vides housing opportunities for millions of
headlines claim that the 1
4/26/91
low and moderate-income families.
ter District and other So
To suggest that the Bush Administration
water purveyors refuse t
e of Bush Son
"has no plan for adequate housing" and
or at least they conti
that I "lobbied against the National Af-
hook-ups.
S (front page, April 19) report-
fordable Housing Act" is extremely irre-
JOHN ROBERTS, E
sident Bush's son Neil received
sponsible for a shadow senator in Congress.
California Rice
rebuke" from T. Timothy Ryan
As Jackson must know, the Administra-
of the Office of Thrift Supervi-
tion's hope and home initiatives form the
S conflict of interest role while
cornerstone of the National Affordable
a director of the Silverado
Housing Act. Far from lobbying against it,
avings & Loan Assn. in Denver.
President Bush and I urged the Democrats
Los Angeles
that you advise your reporter
in Congress to fund the program this year,
rebuke was more apt. Neil Bush
instead of waiting until 1992.
DAVID LAVENT
Publisher and Chief Exec
given a slap on the wrist for his
Unfortunately, the Democrats denied
ings in cahoots with two shady
our request, opting instead to continue the
SHELBY COFFEY III
Editor and
Es
characters who helped Silvera-
failed programs of the past.
Executive Vice President
ay to bankruptcy, while leaving
Perhaps if Jackson put as much effort
into persuading his Democratic colleagues
GEORGEJ. COTI.IAR
En
rs with a debt of $1.6 billion to
Managing Editor
epositors.
to fund President Bush's housing initia-
NOEL GREENWOOD
S
on to Neil Bush's flagrant con-
tives as he does waging ad hominem
Senior Editor
En
rest culpability, he pocketed a
attacks on me, we might make some real
NARDA ZACCHINO
progress in helping low-income families
Associate Editor
an made to him with the proviso
dn't have to repay it if his
have access to decent, safe, affordable
THOMAS PLATE
in one of his real estate buddy's
housing.
Editor
idn't pay off. In actuality that
JACK KEMP
of the Editorial Pages
g more than a blatant payoff
HUD Secretary, Washington, D.C.
FRANK DEL OLMO
Law a
himself at a committee hearing
Deputy Editor
of the Editorial Pages
nd like a "fishy deal." And what
MIC
punishment for his transgres-
How to Write Us
Ms. Barbara Burnham
Ms. Patricia Peterson
Mr. Aaron Gornstein
Fenway Community
Housing and Comm. Affairs
Citizens' Housing and
Development Corporations
Pavilion Building
Planning Association
73 Hemenway Street
109 State Street
3rd Floor
Boston, Mass 02115
Montpelier, VT 05609-0501
16 North Street
Boston, Mass 02109
Jim Horan
Mr. Marc Draisen
Ms. Brenda Clement
General Counsel
Massachusetts Association
The Housing Network of
Connecticut Housing
of Community Development
Rhode Island
Coalition
Corporations
903 Broad Street
30 Jordan Lane
197 Portland Street
Providence, RI 02907-1828
Wethersfield, CT 06109
Boston, Mass 02114-1716
David Haney
Deepak Bhargava
Senior Vice President,
Director of Public Policy
First New Hampshire Banks
Center for Community Change
P.O. Box 5087
1000 Wisconsin Avenue, NW
Manchester, NH 03108-5087
Washington, DC 20007
sunt Th'you
The Facts About Federal Housing Programs in New England
Nearly One Million People Are At-Risk
There are currently over 363,000 units of HUD-assisted housing in New England
(excluding Farmers' Home assistance) providing homes to about 900,000 low income
people.
Admission to most HUD programs is limited to households earning less than 50% of
median income or approximately $20,000-$25,000 per year for a family of four. The vast
majority of tenant households earn much less than this. For example:
In project-based Section 8 units, 95% of the households earn less than $7,500
annually, including many elderly on fixed incomes and minimum wage workers.
In public housing, the average households earns 17% to 30% of median income
or approximately $8,000 to $15,000 per year for a family of four.
Approximately half of the households are elderly or disabled.
Where Will People Go?
Market rents are beyond the reach of low income households. The median rent in
New England states is $570. Median rents are much higher in many suburban
communities ($700 to $800 per month or more).
Low income families do not earn enough to cover the cost of operating rental
housing, let alone cover debt service. By the 30% affordability standard:
Households earning less than:
Can afford:
$6,948 (AFDC grant, family of 3)
$174/month
$8,840 (1 minimum wage earner)
$221/month
$14,800 (fed. poverty level--HH of 4)
$370/month
$25,650 (50% median, family of 4)
$610/month
Public and Privately Assisted Housing: A Multi-Billion Dollar Investment
HUD has invested billions of dollars to acquire sites and develop and modernize
federal public and assisted housing, creating long-term affordable units.
Assuming a value of $50,000 per unit, the assisted housing stock is valued at more
than $18 billion in New England. Jeopardizing this investment by eliminating subsidies
to assisted housing developments is "penny wise and pound foolish."
States and cities will have limited resources to develop replacement housing since the
cost of a capital write-down to create debt free housing would range from $24,000 to
$60,000 per unit--roughly 4 to 10 times the cost of the average annual Section 8 subsidy.
The Ticking Time Bomb: Expiring Units
Approximately 57,000 units in "expiring use" buildings are at risk of becoming
unaffordable because their owners have the option of prepaying their mortgage within
the decade thereby ending the federal use restrictions. If preservation funds are
eliminated, low and moderate income tenants will be at great risk of displacement.
In addition, the vast majority of the 117,000 project-based Section 8 units will be
expiring over the next five years. Unless these contracts are renewed, there is likely to
be massive tenant displacement and loss of the affordable housing stock.
Prepared by Citizens' Housing and Planning Association
16 North Street, Boston, MA 02109
(617) 742-0820
INVENTORY OF FEDERALLY ASSISTED HOUSING IN NEW ENGLAND
STATE
PUBLIC
SECTION 8
SECTION 8
EXPIRING USE
MEDIAN RENT
WAITING LIST
HOUSING
MOBILE
PROJECT BASED
ESTIMATE
Connecticut
20,636
19,901
30,066
~14,000
$510
26,000+
Maine
17,483
7,861
6,656
3,559
$463
8,000
Massachusetts
34,000
53,000
64,000
~27,000
$580
122,000
New Hampshire
4,384
4,082
6,508
2,073
$573
11,160
Rhode Island
9,676
5,061
10,882
7,409
$560
7,508
Vermont
1,792
4,271
5,815
2,766
$446
3,200
NEW ENGLAND
total: 87,971
total: 94,184
total: 123,935
total: 56,807
average: $569
total: 177,868
+
total from major Connecticut cities.
IMPACT OF CUTS TO HUD IN NEW ENGLAND STATES
STATE
HOMELESS GRANT
PUBLIC HOUSING
PUBLIC HOUSING
SECTION 8
MODERNIZATION
OPERATING SUBSIDIES
INCREMENTAL
RENTAL ASSISTANCE
Connecticut
$11,035 (FY`95)
$54,597 (FY`95)
$38,797 (FY`95)
890 (FY`95)
5,676 (House)
36,890 (House)
33,446 (House)
0 (House)
Total loss:
$5,359
$17,707
$ 5,351
890 section 8s
Maine
$3,753 (FY`95)
$8,519 (FY`95)
$8,428 (FY'95)
153 (FY`95)
1,930 (House)
5,756 (House)
7,265 (House)
0 (House)
Total loss:
$1,823
$2,763
$1,163
153 section 8s
Massachusetts
$32,460 (FY`95)
$110,972 (FY`95)
$90,426 (FY`95)
1,450 (FY`95)
16,693 (House)
75,981 (House)
77,954 (House)
0 (House)
Total loss:
$15,767
$34,991
$12,472
1,450 section 8s
New Hampshire
$ 2,599 (FY`95)
$8,062 (FY`95)
$5,956 (FY`95)
134 (FY`95)
1,336 (House)
5,447 (House)
5,135 (House)
0 (House)
Total loss:
$1,263
$2,615
$ 821
134 section 8s
Rhode Island
$5,341 (FY'95)
$22,745 (FY`95)
$14,554 (FY`95)
139 (FY`95)
2,746 (House)
15,368 (House)
12,546 (House)
0 (House)
Total loss:
$2,595
$7,377
$2,008
139 section 8s
Vermont
$1,387 (FY`95)
$2,070 (FY`95)
$2,672 (FY`95)
65 (FY`95)
713 (House)
1,399 (House)
2,304 (House)
0 (House)
Total loss:
$ 674
$ 671
$ 368
65 section 8s
NEW ENGLAND
$56,575 (FY`95)
$206,965 (FY`95)
$160,833 (FY`95)
2,831 (FY`95)
29,094 (House)
140,841 (House)
138,650 (House)
0 (House)
Total loss:
$27,481
$66,124
$22,183
2,831 section 8s
Jul. 11 '95 12:53
CHAPA
FROM 617-742-3953
P. 1
C
C H A P A
Citizens' Housing and
Planning Association. Inc.
Fax Transmittal Sheet
President
James G Stockard. Jr.
Vice Presidents
Jack Cooper
Paul Douglas
Ellen reingola
Robert Kuenn. Jr.
Treasurer
To: Cathy
Mailliew 110503
Clerk
Ann Houston
Fax Number: 202-456-5557
Executive Director
Aaron Gornstein
Date:
Time:
Number of Pages Including Transmittal Sheet:
call thing
From:
Auron Gornsler
quiz Fax
Number: (617) 742-3953
Telephone Number: (617) 742-0820
Comments:
thank you for calling me
back 50 funcly
THIS AGENCY IS
SUPPORTED DY
United Way
10 North Street Bocton, MA 02109 Telephone (617) 742-0820 Fax (617) 742-3953
Jul. 11 '95 12:54
CHAPA
FROM 617-742-3953
P. 2
CHAPA
Citizens' Housing and
Planning Association. Inc.
President
James G. Stockard Jr.
Vice Presidents
Jack Conner
call
call June 26.
1995
Faul Douglas
Filen Feingold
Mr. Bruce Reed
Robert Kyohn. Jr.
Deputy Assistant to the President for Domestic Policy
Transurer
The White House
Matthew Hobbs
1600 Pennsylvania Avenue
Clerk
Washington. DC 20500
Ano Bousion
Executive Director
naron Comstein
Dear Mr. Reed:
During the last few months, housing advocates and providers from all six
New England states have been working together to develop strategies to preserve
and develop affordable housing despite proposed cuts in federal funding and
impending changes to the U.S. Department of Housing and Urban Development.
The shortage of housing, combined with high costs of rent and utilities in New
England, makes our situation particularly precarious if cuts to the housing budget
cause massive displacement among tenants in public and subsidized housing. We are
writing to request the President's involvement in housing issues and to request
a meeting with you to discuss the future of housing in our region and our
suggestions for sensible HUD reform.
We believe that the federal government must continue to play an active role
in addressing the housing and community development needs of low and moderate
income people. The New England region will be disproportionately attected by cuts
to the federal housing budget, due in part to the large investments which have been
leveraged from public and private lenders in response to federal funds. In FY'94, the
New England states received $228.2 million for public housing development and
modernization. In FY'93, New England received $209 million in Community
Development Block Grants, and $55.9 million in HOME funding. This support
from the federal government not only helps to ensure that housing is safe and
accessible. but it also creates jobs and revitalizes our communities.
As the discussion on reshaping the future of HUD continues, we must
ensure that the federal government adequately maintains our country's investment in
the current stock of affordable housing. We need to recognize that project-based
and tenant-based programs are both essential to meet the diverse needs of low and
modcrate income people in various gcographic locations. Additionally, we need to
expand opportunities for resident participation and possible homeownership options.
THIS AGENCY 15
We also need to ensure that the federal government continues to maintain the CRA
SUPPORTED BY
program so that banks can effectively participate in affordable housing.
16 North Street
Boston, MA 02109
Telephone (617) 742-0820
Fax (617) 742-3953
United Way
Jul. 11 '95 12:54
CHAPA
FROM 617-742-3953
P. 3
We are concerned about the potential consolidation of over sixty housing programs into a
small number of block grants. As part of this change, the federal government must ensure that
state and local government adequatcly fund housing programs that serve particularly vulnerable
populations and that community organizations continue to have a role in affordable housing. The
federal government must also cnforce fair housing laws to ensure that everyone has an equal
opportunity to obtain housing
Before taking any drastic steps to change federal housing or community development
policies, the federal government should carefully evaluate the economic and social impacts on
residents, owners, state and local governments, and lenders. We are particularly concerned that
as we attempt to address the failures that characterize a very small segment of public and
subsidized housing programs, we recognize that there have been many successes in existing
programs and we continue to build on these successes.
As the congressional debate on the FY'95 rescissions package and the FY'96 budget
resolution progresses. we want to make sure that President Clinton understands the grave impact
of severe cuts to the nation's affordable housing and community development programs. As we
move into the appropriations and authorization processes, wc look forward to the opportunity to
discuss these issues with you further and to present our suggestions for meaningful HUD reform.
Please feel free to contact Aaron Gornstein at Citizens' Housing and Planning Association (617)
742-0820. Thank you for your attention to this very critical issue.
Sincerely,
New Hamphsire:
David Wood
Chris Gallagher
Director
Acting Director
Affordable Housing Education and
Cheshire Housing Trust
Development
John Hamilton
Alice Altman
Director
Director
Concord Area Trust for Community Housing
Contoocook Housing Trust
Bridget Belton-Jette
Ann Rugg
Director
Director
Greater Nashua Housing & Development
The Housing Partnership
Foundation
Linda Harvey
Dan Reidy
Director
Director
Laconia Area Community Land Trust
Manchester Area Housing Services
Jul. 11 '95 12:55
CHAPA
FROM 617-742-3953
P. 4
Peter Roche
Eliot Berry
Director
Board Member
Manchester Neighborhood Housing Services
New Hampshire Community Loan Fund
Michael LaFontaine
Chris Owre
Community Land Trust Project Director
Director
New Hampshire Community Loan Fund
Northern Community Housing Corporation
Wally Roberts
David Knapp
Director
Director
Twin Pines Housing Trust
Twin Rivers Community Corporation
Connecticut:
Jeffrey Freiser
Richard L. Tenenbaum
Executive Director
Co-Director of Housing Task Force
Connecticut Housing Coalition
Connecticut Legal Services
Maine:
Joel Rekas
Elaine Sederlund
Executive Director
Executive Director
Maine Coalition for the Homeless
Cumberland County Affordable Housing
Venture
Massachusetts:
Pam Bender
Barbara Bumham
Executive Director
Executive Director
Massachusetts Tenants Organization
Fenway Community Development
Corporation
Marc Draisen
Aaron Gornstein
President and CEO
Executive Director
Massachusetts Association of Community
Citizens' Housing and Planning Association
Development Corporations
Linda Johnson
Vincent F. O'Donnell
Housing Policy Coordinator
Director of Development
Massachusetts Coalition for the Homeless
Community Economic Development
Assistance Corporation
Jul. 11 '95 12:55
CHAPA
FROM 617-742-3953
P. 5
Rhode Island:
Richard H. Godfrey, Jr.
Brenda J. Clement
Exccutive Director
Executive Director
Housing Network of Rhode Island
Rhode Island Housing and Mortgage Finance
Corporation
Tanja Kubas-Meyer
Executive Director
Rhode Island Coalition for the Homeless
Vermont:
John E. Davis
Polly Nichol
Housing Director
Project Development Director
Community and Economic Development
Vermont Housing and Conservation Board
Office, City of Burlington
cc.
Susan Brophy
Deputy Assistant to the President for Legislative Affairs
ACORN
e
JERRY JONES
LEGISLATIVE REPRESENTATIVE
ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM Now
ACORN
739 8TH STREET, S.E.
WASHINGTON, D.C. 20003
(202) 547-2500
FAX: (202) 546-2483
July 14, 1995
Molly B. Brostrom
Senior Policy Analyst
Domestic Policy Council
The White House
Washington, D.C. 20500
Dear Ms. Brostrom:
It was good to meet you yesterday. I hope our discussion on
housing issues will continue in the weeks ahead.
As promised, I've enclosed some materials which describe
ACORN's work. I think Mack McLarty and Carol Rasco can
attest to ACORN's long-standing and productive relationship
with Bill Clinton, going back to his years as attorney
general and then governor of Arkansas. We remain committed
to help this Administration succeed in its domestic agenda.
Please don't hesitate to call if there's anything I can do
for you.
Sincerely,
Xem Jerry Jones
Legislative Director
enclosure
Association of Community Organizations for Reform Now
Organizing & Support Center: 1024 Elysian Fields Avenue, New Orleans, Louisiana 70117
504-943-0044
FAX 504-944-7078
Home Office: 523 West 15th Street, Little Rock, Arkansas 72202
501-376-7151
National Office (DC): 739 8th Street S.E., Washington, D.C. 20003
202-547-2500
FAX 202-546-2483
National Office (NY): 845 Flatbush Avenue, Brooklyn, New York 11226
718-693-6700
FAX 718-693-3367
11
What has ACORN done?
Who is on the streets,
"An unusual political force that began in Arkansas is nettling the
in the neighborhoods,
economic and political establishment in a widening swath. It IS
the Association of Community Organizations for Reform Now,
HOUSING
Created or upgraded homesteading programs
JOBS
Secured "First Source" ordinances or agree-
popularly know as ACORN.
in the workplaces
that turn over vacant houses to low-income
ments requiring developers to hire low-
The New York Times
residents in Philadelphia, Detroit, Brooklyn,
income unemployed residents in Miami,
Bridgeport, Chicago, Phoenix, St. Louis, and
Washington, D.C., Bridgeport, Pittsburgh,
and on the airwaves
"ACORN is short on radical rhetoric and long on pavement
Little Rock. Won passage of a national
Dallas, St. Louis, Little Rock and Des Moines.
pounding in local communities. Members spent years attacking
homesteading bill. Forced HUD to reform
bread and butter issues such as utility rates and sales tax on
policies and procedures to make it easier for
VOTER
Registered over 500,000 new voters since
organizing and building power
medicine, before sallying forth into presidential politics.
low and moderate-income people to pur-
PARTICIPATION
1980. Struck down barriers to voter registra-
chase HUD-owned properties.
tion in Bridgeport, Pine Bluff. Little Rock.
The Washington Post
for low and moderate-income
Atlanta. Grand Rapids and Pittsburgh. Re-
COMMUNITY
Negotiated landmark agreements with banks
placed at-large City Council elections with a
"ACORN is a network of neighborhood groups whose black,
REINVESTMENT
in St. Louis, Baton Rouge, Philadelphia,
district election system in Pine Bluff and
Americans?
white and Latino members are not well off: they are dishwashers.
Phoenix. Denver. Little Rock, New Orleans,
Pittsburgh. Recruited and trained ACORN
blacksmiths, carpenters, unemployed electricians, factory workers.
Chicago, Minneapolis-St. Paul, Brooklyn.
members to run for public office in Little
and small businessmen. It is populist in tone, drawing on the
Des Moines, Dallas and Washington, D.C.,
Rock, Pine Bluff, Philadelphia. Bridgeport,
experiences of the Southern Tenant Farmers Union during the
making over a billion dollars available for
New York, Chicago, Tulsa, St. Louis and Des
loans in low-income neighborhoods. Blocked
Moines.
1930s depression and those of the National Welfare Rights
Organization more recently. Both groups sought to win more
the gutting of the federal Community Rein-
vestment Act. Forced Fannie Mae to estab
TOXICS
Forced companies to clean up, move, or can-
political power for the poor.
lish precedent-setting program to buy com-
cel plans for toxic chemical plants, dumps or
The Economist
munity reinvestment mortgages.
discharges in Memphis, Ft. Worth, Philadel-
phia, Des Moines, New Orleans, Dallas.
"Since its inception in 1970 in Little Rock, Arkansas, the
FINANCIAL
Spearheaded organization of the Financial
Minneapolis, Jacksonville. St. Paul and Chi-
collection of neighborhood groups has fought most of its battles
REFORM
Democracy Campaign, a community, farm,
cago.
with power companies. city halls, and state houses. But while
labor and church alliance fighting for a fair
these struggles for lower utility rates and better service are
solution to the S&L and banking crises. Con-
HEALTH
Improved hospital care in Little Rock, Dallas
ACORN's lifeblood, the ultimate goal has always been a
vinced Congress to attach innovative provi-
and New York. Expanded childhood immu-
redistribution of power in American society.
sions to the Savings and Loan bailout which
nization in New Orleans. Organized parents
require the S&L industry to dramatically
of lead poisoning victims to pressure local
Dallas Morning News
increase lending for low and moderate in-
governments for improved screening and
come housing and which makes thousands of
treatment in New York, Detroit. Chicago,
foreclosed properties available to low-income
and Washington, D.C.
NATIONAL OFFICES
homebuyers.
739 8th Street S.E., Washington, DC. 20003
NEIGHBORHOOD
Forced police and city officials to respond
(202) 547-2500. FAX (202) 546-2483
SCHOOLS
Won establishment of alternative public
SAFETY
more effectively to rapes in low-income
845 Flatbush Ave.. Brooklyn. NY 11226
schools in ACORN neighborhoods in Brook-
neighborhoods and to establish rape-preven-
(718) 693-6700, FAX (718) 693-3367
lyn and Queens. Improved school facilities
tion programs in St. Louis. Boston. Chicago,
117 W Harrison St., Chicago, IL 60605
and governance in Chicago, New York and
New Orleans and Des Moines. Won pro-
(312) 939-7488, FAX (312) 939-8256
Bridgeport. Stopped school closings in Des
grams to fight drugs, ranging from more
ORGANIZING AND SUPPORT CENTER
Moines, won free transportation to schools in
police foot patrols to better recreation facili-
1024 Elysian Fields Ave. New Orleans. LA 70117
ACORN
Little Rock, upgraded school safety in New
ties in New Orleans, Philadelphia. St. Louis
(504) 43-0044, FAX (504) 944-7078
Orleans and Detroit.
and Detroit.
HOME OFFICE
523 W. 15th St., Little Rock, AR 72202
(501) 376-7151 FAX (501) 376-2423
4879 1000
ACORN stands alone in its commitment to organizing
ACORN's low and moderate-income membership runs
and winning power for low and moderate-income people.
the organization.
In the 1990s. the concerns of low and moderate-
ACORN members-not staff or lawyers or politi-
income people are not on the nation's agenda. Under attack
cians-speak for and lead the organization. Many are new to
ACORN HOUSING CORP.
from the right. ignored by the center and many progressives. the
community activism when they join but leadership development
poor grow in numbers every day. Yet ACORN stands virtually
is at the core of ACORN's organizing process. On-the-job and
alone in its dedication to organizing the poor and powerless-
in formal training programs. ACORN members develop the
ACORN has been, and will continue to be the most
a dedication as strong today as it was in 1970 when a group of
skills and confidence to chart the organization's course. From
Arkansas welfare mothers formed ACORN's first membership.
the neighborhood group level to the national board, ACORN
innovative community organization in the country.
From its inception, ACORN has constantly chal-
leaders call the shots.
lenged the traditional notions of what a community organiza-
ACORN is the largest low and moderate-income
ACORN's membership pays for the organization.
tion is. It pioneered multi-racial and multi-issue organizing. It
membership organization in the country.
Knowing that a poor people's organization can't rely
introduced strategies to contend with corporate targets, led the
ACORN has grown steadily to a membership of over
way in electoral organizing. and advanced direct action tactics
75.000 African American, white and Latino families. They are
on outside support, ACORN has always been committed to the
like squatting. In recent years, ACORN has taken its path
active members, not just contributors or newsletter readers.
principle of financial self-sufficiency. The organization is now
breaking ways in new directions:
Each belongs to one of more than 500 neighborhood chapters
80% self-sufficient, deriving its funds primarily from members
ACORN campaigns address issues that are central to
working on local. citywide. and national campaigns.
dues. raffles. ad sales. dinners. and other events.
the lives of its members, to the viability of low and
Union Organizing
ACORN organizes the unorganized.
moderate-income neighborhoods, and to the future of
To reach the unorganized not only in the neighborhoods
the country.
but in the workplace, ACORN helped found the United
Although no stranger to coalition politics, ACORN's
A typical month might find ACORN neighborhood
Labor Unions in 1979. which succeeded in organizing low
first priority is building organization in low-income communi-
ties. Because ACORN believes that social change comes from
groups in New York and Chicago campaigning to reform city
wage service workers most unions had ignored. Now
schools, groups in New Orleans and Boston fighting the high
affiliated with the Service Employees International Union,
the bottom up, organizers are on the streets every day, knocking
AFL-CIO, the Locals in Louisiana, Illinois, Arkansas, and
on doors and recruiting new members. Major campaigns,
incidence of rapes in their communities. and groups in Detroit
whether around housing. or jobs. or voter registration. are
and Washington. D.C. demanding testing and treatment for
Texas have over 20,000 members working in schools, nurs-
designed to reach the unorganized majority of low and moder
lead poisoning.
ing homes. hospitals, home health care agencies, and other
ate-income people-the key constituency that must be mobi-
At the same time. ACORN groups throughout the
services.
lized for a progressive movement for social change in this country
country work in unison on national issues. In recent years,
to succeed.
ACORN has waged precedent-setting campaigns to win hous-
Radio and TV
ing for the poor. jobs for the unemployed, and capital invest-
Understanding the power and potential of the electronic
ment for low and moderate-income communities.
media. ACORN members are helping to build a progressive
radio and television nerwork. FM radio stations are on the
ACORN is a direct action organization.
air in Dallas and Little Rock, the first television station is
ACORN employs the broadest possible range of rac-
operating in Salinas/Warsonville, California. and a second is
tics. It lobbies, petitions, and files lawsuits. But ACORN's long
under construction in Atlanta. Additional radio and TV
history proves that confronting decision-makers face-to-face
applications are pending.
brings the best results. When the situation demands it, ACORN
members will march, picket, sit-in, squat, and sometimes go to
Housing Development
jail.
To provide affordable housing and revitalize deteriorating
ACORN views political action as an essential part of its
neighborhoods, the ACORN Housing Corporations in
strategy for empowering poor people.
Arizona. Arkansas. Illinois, Louisiana, New York. Pennsyl-
When most community organizations still believed in
vania. Texas. and Washington, D.C. acquire and rehabili-
sitting on the sidelines on election day, ACORN was leading the
tate abandoned buildings. Low and moderate income
way in voter registration. education, and mobilization. For
families who contribute sweat equity buy the houses at below
nearly 20 years, ACORN members have used the electoral arena
market prices and the land remains in the ACORN Com-
ACORN
to press their issues and to put responsive candidates in office.
munity Land Association to ensure that it will always be used
SCREEN all DC K.d.
Increasingly ACORN members are running for office themselves.
for affordable housing.
Under he lead
Inspect and Test
More househoks
Abate
Units
with
Kids
Photos by Rick Reinhard. Pober: Fox (impact Visuals). Madeleine Adamson
ACORN in the news
The ACORN action on Newt Gingrich made the
"It turns out," the Journal said, "that the protest
SPECIAL EDITION ACURN REPORT
national news on all three networks, was the lead
was organized by the left-wing activist group
story on CBS radio and front-page in Philadelphia,
ACORN, a frequent recipient of. federal and state
News from the National Office of the Association of Community Organizations for Reform Now Mar. 1995
Atlanta and elsewhere across the country. Even Jay
grants We may never know if federally funded
Leno quipped: "Now he knows what it's like to have
'volunteers' helped ruin meetings for 2,000 county
someone take his lunch away."
officials, but we hope Congress plans some oversight
ACORN leads fight against budget cuts
Conservative newspapers and talk show hosts,
hearings on the groups involved in Mr. Clinton's
including Rush Limbaugh, jumped on the story to
service program."
500 disrupt
Celebrating 60 years of service to counties!
launch a barrage of attacks. The Washington Times
The most rabid editorial so far appeared in the
ran an editorial titled "Federally funded Newt-
Arkansas Democrat Gazette. Titled "Invasion of
lunch, chew
Bashing?" alleging that the protest was supported by
the pesky ACORNs," the diatribe claims: "ACORN
"Bill Clinton's pet program, AmeriCorps." The
never met a government give-away program that it
on Gingrich
ACORN Housing Corporation has AmeriCorps
didn't like. Members spend most of their time
BY JOHN DIAMOND
Associated Press Writer
volunteers working in its loan counseling program to
dreaming up new ways to take from the nation's
WASHINGTON - A ball-
help low-income families become homeowners but
productive citizens to support the non-productive.
room full of county officials
none of the volunteers work for ACORN and none
Since many, if not most, ACORN members are
was awaiting Newt Gingrich's
arrival Monday when the
attended the Washington demonstration.
unemployed, they have nothing better to do than
kitchen doors burst open to re-
Two days later, the paper kept up the refrain
travel in chartered buses to take away other people's
veal not dessert but about 500
despite an emphatic rebuttal from AmeriCorp's
protesters waving empty lunch
freedom of speech In this country, people should
trays and chanting, "No more
director. This time the editorial was titled "Squash
have the right to demonstrate, but those who disrupt
cuts."
ACORN."
The demonstrators, many
meetings and interfere with the constitutional rights
carrying small children, dodged
The Wall Street Journal picked up on the
of others should be tossed into jail like the thugs they
waiters as they took over the
Washington Times' allegations in their own editorial,
are ACORN was formed in Arkansas some 25 years
head table and jammed the
aisles, protesting reductions in
reprinted from The New York Times
which set the stage by repeating Gingrich's ques-
ago. It was designed then, and now, to get more for
the school lunch program. In do-
tions: "Why weren't they at work? Who are they?
the slothful and the disadvantaged from the compas-
ing so, they prompted cancella-
tion of the House speaker's
Who paid them?"
sionate 'gimme' society."
speech.
Associated Press
"Don't take the food out of
Protest Against Gingrich and Plans to Cut School Lunch Program
the children's mouths." said
Nearly 500 demonstrators marched into: ballroom
against Republican plans to alter the school lunch
Maxine Nelson of Pine Bluff.
in Washington yesterday where county officials
program, the protestors from the Association of
who. like the others. belongs to
Non-Profit Org.
were waiting to hear a speech by Newt Gingrich.
Community Organizations for Reform Now forced
the Association of Community
MEJ MAILING
U.S. Postage
Organizations for Reform Now,
Waving empty lunch trays and shouting slogans
the cancellation of Mr. Gingrich's speech.
THE ACORN REPORT
PAID
or ACORN.
The legislation would in-
ty officials. shouting through
Washington, DC
Faced with the raucous
Permit No. 8148
crease spending by 4.5 percent
bullhorns that the cost of one of
protest. luncheon organizers
per year - up from $6.68 billion
their baked chicken meals
739 8th Street S.E.
from the National Association of
next year to $7.85 billion in 2000
probably would finance a week
Washington, D.C. 20003
Counties abandoned plans for
- but opponents say that would
of school lunches.
speeches by Gingrich and others
not keep pace with demand
The county officials fumed.
before the 2.000 county offi-
PHONE: 202-547-2500
coupled with inflation.
One NACO official said their
cials. The demonstrators
The demonstrators at the
luncheon leftovers were going to
FAX: 202-546-2483
cheered the decision.
Washington Hilton Hotel were
Washington homeless shelters.
District police officials said
"just tragically misinformed,"
"This only makes me less sup
no one was arrested.
Gingrich later told reporters,
portive of their cause." said
In addition to eliminating
questioning their motives and
Shirley Greene, county commis-
proposed cuts in school lunch-
criticizing their behavior. "Why
sion chairman from Latah
es, the protesters want a mini-
weren't they at work? Who are
County, Idaho. "It's about time
mum wage increase, a national
they? Who paid them?"
people figured out they have to
ADDRESS CORRECTION REQUESTED
voter registration drive and
"They broke into the meeting
do something for themselves
funding for subsidized housing.
and had bullhorns, and their
rather than have their hand out
Last week, House Republi-
idea of a dialogue was to chant
to the government."
cans advanced a proposal to re-
with bullhorns," Gingrich said.
Added Jack Olsen of Oakland
place the federally mandated
"I thought that was an interest-
County. Mich., "I think they
school lunch program with a
ing commentary on those who
probably not won many friends
reprinted from the Arkansas Democrat Gazette
state-administered system fund-
would extort money out of the
today."
ed by federal block grants. Op-
taxpayer."
The protesters left after 40
ponents said it could lead to
Although Gingrich was the
minutes and boarded the char-
cuts in free and subsidized
protest's target. some demon-
tered buses that had brought
school lunches to the poor.
strators directed barbs at coun-
them to the hotel.
Five arrested as ACORN
School lunch protest
JOBS CAMPAIGN UPDATE
disrupts CRA hearing
The action described in the wire service stories
Nati
cancels Gingrich speech
ACORN names Marriott
reprinted here was part of ACORN's annual
"welfare cheat of the year"
Legislative Conference which brings leaders from
Speaker calls
Georgia arrived late at Washington
National Airport.
After the protest that kept Newt Gingrich from
across the country to Washington, DC for five
action 'bizarre'
The speaker was scheduled to ad-
addressing the National Association of Counties
dress the National Association of
days of training and lobbying.
luncheon, ACORN members boarded buses for
Counties at 12:30 p.m. The protest-
the headquarters of the Marriott Corporation in the
In their lobbying visits with members of
Cox News Service
ers. who gathered out of sight behind
of the hotel. didn't hear the an-
Washington suburbs.
Congress, ACORN members stressed their
WASHINGTON - House Speaker
nouncement that he would be a half-
They arrived to find dozens of county police
opposition to limits on school lunch funding and
Newt Gingrich was forced to cancel a
hour late.
cars blocking all of the entrances, but undeterred,
to the $7 billion of proposed cuts in housing
luncheon appearance before 2.500
At the original speaking time.
ACORN members rallied outside. Branding the
programs. They argued for an increase in the
county executives yesterday after
they suddenly filed through the lob-
company the welfare cheat of the year" ACORN
hundreds of protesters burst through
by. overwhelmed a hotel security
minimum wage, against the repeal of the Motor
called for changes in hiring policies that discrimi-
the doors of a hotel ballroom to decry
team barring the ballroom doors,
Voter law, and against attempts to weaken the
changes in the school lunch pro-
and marched down the center aisle
nate against Blacks and Latinos and that interfere
waving school lunch trays and
with union organizing.
Community Reinvestment Act (CRA).
gram.
The well-orchestrated demonstra-
chanting "The people's voices shall
Marriott is just one of many targets in ACORN's
Hitting the hill to save CRA
Celebuting
60
years
tion by ACORN. a grass-roots group
rise again."
ongoing campaign to win jobs for residents of low
that works for the poor and lower-
Finally. a voice crackled through
income neighborhoods. What began as an effort
On the last day of the conference, ACORN
wage workers, was the first major
a hotel security radio with a belated
delegates rose at 5 am to be first in line for a
act of civil disobedience prompted by
warning that protesters were coming
to enforce the hiring requirement for HUD-funded
the Republicans "Contract with
in "by the hundreds." prompting a
projects has grown into a fight for jobs at all pub-
House Banking Committee hearing on CRA
America." and some observers said
cheer from the demonstrators. who
licly subsidized housing and commercial develop-
reform. They outsmarted the bank lobbyists who
more could come.
represented 31 states.
ments.
Republicans "talk about the an-
Most of the startled county com-
hire bicycle messengers to wait in line for them
gry white men. but the whole dog-
missioners remained seated as hotel
Raising the minimum wage
and when the hearing room opened at 9:30,
gone universe is angry because the
waiters delivered plates of chicken,
virtually none of the usual lobbyists got in.
haves are kicking the have-nots in
potatoes and vegetables. The head
In San Jose and Denver, ACORN members
the butt." said Paul Mayhue. a coun-
table was abandoned when demon-
have upped the ante, demanding not only first
Demanding that they be allowed to testify.
ty commissioner from Grand Rapids.
strators overran it and took over the
source hiring agreements but livable wages. Fifty
ACORN members began chanting "Save CRA"
Mich.
microphone.
members marched on the San Jose Redevelop-
In an interview on Capitol Hill.
"They are going to cut taxes on
and "No Safe Harbors" referring to a proposal that
ment Authority demanding that all jobs at subsi-
Mr. Gingrich said the demonstrators
the right and then take food out of
would exempt almost 90 percent of banks from
were "tragically misinformed" and
the mouths of children. We have to
dized sites go to low income applicants referred by
CRA challenges. Within minutes. the Capitol
called the protest "a bizarre way to
speak out." said Johnnie Pugh. a
community organizations and that wages be no
try to blackmail the taxpayers by
protester from Arkansas.
less than $7.70 an hour. The agency's executive
Police dragged five leaders from the room,
emotion and noise."
When it was announced that Mr.
director agreed to negotiations and with the issue
handcuffed them and took them to jail.
Mr. Gingrich said the GOP has
Gingrich had canceled his appear-
increased money for the lunch pro-
receiving extensive press coverage, members of
ance, the protesters left. "You are not
The ACORN leaders were not released until
gram. but opponents argue that the
our target," one organizer said.
the city council are jockeying to be seen as cam-
late that night after Congresswoman Maxine
ASSOCIATED PRESS
increases are less than originally
But not all of the county officials
paign supporters.
Waters went down to the jail to talk to the authori-
Protesters against cuts in the school lunch program demonstrate at
budgeted and that some states could
were so understanding. David Huff-
Negotiations are also getting underway in Den-
the National Association of Counties luncheon in Washington.
run out of money.
man. sheriff of Catawba County.
ver, where the Urban Renewal Authority distrib-
ties. Calls from Congressman Joe Kennedy and
Mr. Gingrich missed the protest
N.C., said simply: "They're a bunch
Senator Ted Kennedy also helped end what was
event because his airplane from
of deadbeats."
utes millions in subsidies to upscale hotels and
retail shopping centers claiming that it is removing
an exceptionally long stay in jail for a non-violent
Photo this page and article on page 3 reprinted from the Baltimore Sun
"slums and urban blight." With a march on the
protest of this type.
Taking the action back home
agency. 40 ACORN members charged that subsi-
dizing minimum wage jobs in fact creates slums
Following the Legislative Conference, ACORN members in Chicago,
and blight. The director quickly agreed to negoti-
Jersey City, St. Paul, and around the country targeted Republican
ate.
members of Congress for actions protesting school lunch cuts. In
ACORN invites Gingrich to visit low-income neighborhoods
At the national level, ACORN is challenging the
Baltimore, children led the chants and delivered a failing report card to
Republican Congress to raise the minimum wage
Rep. Wayne Gilchrest. Pine Bluff ACORN members and kids visited
Unable to meet face to face with Newt Gingrich at
to educate himself by coming out to our neighborhoods."
and pressuring companies like Marriott, which pay
Rep. Jay Dickey's home carrying empty lunch bags with slogans de-
the National Association of Counties luncheon, ACORN
"Some people may have found our tactics yester-
minimum wage while collecting huge public subsi-
nouncing the cuts. On their way to Sen. Slade Gorton's office on a city
issued an invitation the next day to the Speaker to visit
day uncomfortable." added Pine Bluff, Arkansas member
dies. to support the federal increase.
bus, Seattle members got a great response from fellow passengers who
low-income neighborhoods and listen to the people who
Maxine Nelson, "but we can not continue to be the
signed their petition against the cuts. Members from across Texas
For information, contact Steuart Pittman, 202-547-
will be hit hardest by his policies.
scapegoat or face the cutting block of the radical right.
descended on Sen. Kay Bailey Hutchinson's Austin office. Responding
2500
"We invite Speaker Gingrich to tour our neighbor-
We are hard working people who care about holding our
to their demands, the Senator's top aide said, by speaker phone from
hoods and see what impact his Contract with America will
communities together and, for now, that means fighting
Washington, that Hutchinson does not favor block grants for the school
have," announced ACORN President Maude Hurd. "Cuts
back against cuts in programs that protect our neighbor-
lunch program. ACORN demanded a written commitment. Fifty children
to neighborhood services, policing, youth programs, jobs
hoods, schools and families. There is just no other way
and 20 adults from DC ACORN visited the offices of Rep. William
programs, housing and school lunches will destroy our
to communicate with many of these Congresspeople."
Goodling. who chairs the Committee that is cutting school lunches, and
families and our communities.
ACORN had tried over the previous weeks to
Rep. Newt Gingrich. Children read their letters telling the Congressmen
"The Speaker is out of touch," she said, "and needs
schedule a meeting with Gingrich but was turned down.
"we need food so we can learn and have a future," then filled the halls of
the Rayburn Building with chants as they marched out.
2
3
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