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10/2/75 - National Housing Rehabilitation Conference
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1133429
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document
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10/2/75 - National Housing Rehabilitation Conference
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collections
Carla A. Hills Speeches
Speeches
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Conservation
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1975-10-02
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10
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1975
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2
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1975-10-02
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10
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1975
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The original documents are located in Box 1, folder "10/2/75 - National Housing
Rehabilitation Conference" of the Carla A. Hills Speeches at the Gerald R. Ford
Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 1 of the Carla A. Hills Speeches at the Gerald R. Ford Presidential Library
FINAL
NATIONAL HOUSING REHABILITATION CONFERENCE
OCTOBER 2, 1975
THIS CONFERENCE IS WHAT ANY PRACTICAL BUSINESSMAN
WOULD CALL A "WHAT'S IN IT FOR ME?" SESSION,
I'M COMFORTABLE WITH THAT.
My JOB INVOLVES SOME 16 MILLION AMERICANS WHO NOW LIVE
IN SLUM CONDITIONS -- AND IF YOU PEOPLE CAN REALLY HELP
THIS NATION PROVIDE THEM WITH DECENT HOUSING IN A SUITABLE
LIVING ENVIRONMENT, I'M INTERESTED.
IT'S FOR SURE THE JOB ISN'T GOING TO BE DONE IF
EVERYBODY JUST SITS AROUND AND PHILOSOPHIZES ABOUT IT,
THE 1974 HOUSING AND COMMUNITY DEVELOPMENT Act WAS
DESIGNED SPECIFICALLY TO MEET AND BEAT THE AGONIZING
PROBLEMS OF THE "HOUSING POOR" -- WHICH IS A WASHINGTON
CLICHE FOR PEOPLE WHO LIVE IN SLUMS,
GERALD
FL FORD LIBRART
-2-
BUT IT IS PRACTICAL ENOUGH, IN APPROACH AND APPLICATION,
TO UNDERSTAND THE MOTIVATING FACTOR IN AMERICAN, INDEPENDENT
ENTERPRISE.
-- THE JOB CAN'T BE DONE WITHOUT MONEY;
-- AND IF WE DON'T GENERATE IT IN THE HOUSING INDUSTRY
ITSELF, WE MIGHT AS WELL PACK UP THE Act AND GO HOME.
So, NO MATTER HOW YOU READ ANY OF THE ITEMS ON YOUR
CONFERENCE AGENDA -- THEY ALL GET DOWN TO THAT UNDERLYING
BASIC OF FREE ENTERPRISE:
MONEY!
FAIR ENOUGH -- WE WILL TALK ABOUT MONEY.
SOME OF THE PAST PRACTICES IN HOUSING -- FEDERAL, STATE,
LOCAL, AND PRIVATE INDUSTRY -- HAVE SQUANDERED MORE OF IT
THAN ANYBODY IN THIS ROOM WILL EVER SEE.
-3-
HAPHAZARD, NO-POLICY LAND USE HAS DESECRATED BILLIONS
OF DOLLARS WORTH OF NATURAL RESOURCES. AND IT HAS WASTED
UNCOUNTED MILLIONS OF ABANDONED CAPITAL ASSETS -- HOUSES;
WATER MAINS; SEWERS; STREETS, ENTIRE NEIGHBORHOODS.
IN THE NATION'S COMPASSIONATE PLEDGE TO HOUSE ITS POOR,
A FEW FOOTLOOSE FREEBOOTERS INVENTED THE PHRASE: "COSMETIC
REHAB" -- AND TARNISHED THE INDUSTRY'S GREATEST ASSET OF
ALL: "PUBLIC CONFIDENCE".
WELL, WE'RE NOT GOING TO GET ANYWHERE, TALKING ABOUT
WHAT HAS PASSED -- BUT AS YOU GET ON WITH THE NUTS AND
BOLTS OF ATTRACTING FEDERAL SEED MONEY FOR FUTURE PROGRAMS
IT IS WELL TO KEEP PAST HISTORY IN MIND,
BECAUSE THE AcT OF '74, UNDER WHICH ALL OF US ARE
NOW OPERATING, WAS WRITTEN AGAINST A DECADE OF EXPERIMENTATION
WITH A HOST OF WELL-MEANING PROGRAMS THAT SIMPLY DID NOT
WORK.
I AM COMMITTED, PERSONALLY AND BY LAW, TO THE REVITALIZATION
OF OUR URBAN NEIGHBORHOODS.
-4-
IT IS OBVIOUS, FROM ALMOST EVERY VIEWPOINT -- LAND
USE, LABOR COSTS, CAPITAL INVESTMENT, AND USE OF EXISTING
ASSETS -- - THAT ONE OF THE MOST IMMEDIATE (AND BEST) WAYS
TO HOUSE THE POOR DECENTLY IS THROUGH REHABILITATION.
Your PRESIDENT TOLD ME LAST WEEK THAT YOUR INDUSTRY
-- WITH HUD's HELP -- CAN PROVIDE 100,000 SUBSTANTIALLY
REHABILITATED UNITS FOR THIS NATION'S "HOUSING POOR" IN
THE NEXT 12 MONTHS.
THAT'S TALKING MY LANGUAGE, SO LET'S EXPLORE HOW HUD
CAN HELP,
UNDER THE NEW ACT (AND, AS AMENDED BY CONGRESS) HUD
HAS AT LEAST FIVE PROGRAMS THAT PROVIDE FINANCIAL ASSISTANCE
FOR PROPERTY REHABILITATION AND NEIGHBORHOOD CONSERVATION.
YOU'RE UNDOUBTEDLY, ALREADY FAMILIAR WITH MOST OF THEM.
BUT LET ME ENUMERATE THEM, AGAIN -- POINTING OUT SOME
OF THE RECENT CHANGES -- FOR IN DEALING WITH A MASSIVE,
LIVING SUBJECT LIKE THIS ONE -- YOU CAN'T ALWAYS BE SURE
THAT WHAT YOU KNEW ABSOLUTELY YESTERDAY IS VALID TODAY.
-5-
THE FIRST AND LARGEST OF HUD's ASSISTANCE PROGRAMS
IS THE COMMUNITY DEVELOPMENT BLOCK GRANT -- WITH OVER
$2 BILLION ALREADY APPROVED FOR STATE AND LOCAL USE AS
OF AUGUST.
As YOU KNOW, THESE GRANTS COVER THE FULL SPECTRUM
OF COMPREHENSIVE NEIGHBORHOOD CONSERVATION AND PROPERTY
REHABILITATION -- HOUSE-BY-HOUSE, BLOCK-BY-BLOCK.
UNDER THE PROGRAM, LOCAL APPLICANTS HAVE BEEN
BUDGETING MORE FOR REHABILITATION THAN EVER BEFORE.
SPECIFICALLY, NEARLY 10 PERCENT -- OR MORE THAN
$200 MILLION -- OUT OF OUR FISCAL '75 $2 BILLION-PLUS
APPROPRIATION.
IN ADDITION, THE BLOCK GRANTS PROGRAM CAN PROVIDE
MUCH MORE THAN THIS RATHER HEFTY AMOUNT,
HUD's REQUIRED PROVISIONAL REPORTS INDICATE THAT
UP THROUGH MARCH OF THIS YEAR -- 90 PERCENT OF ALL FUND
RECIPIENTS (ALMOST ELEVEN HUNDRED OF THEM) ARE INVOLVED
IN "SIGNIFICANT" NEIGHBORHOOD PROJECTS,
-6-
"SIGNIFICANT" IN THIS CASE IS HUD SHORTHAND FOR 40
PERCENT OR MORE OF A LOCALITY'S TOTAL ENTITLEMENT --
LESS ADMINISTRATION AND CONTINGENCIES.
THESE FUNDS, EARMARKED FOR NEIGHBORHOOD CONSERVATION,
ADDRESS SUCH ITEMS AS CODE ENFORCEMENT, URBAN RENEWAL,
REHABILITATION LOANS AND NEIGHBORHOOD IMPROVEMENTS.
THE SECOND PROVISION OF PARTICULAR APPLICATION TO
YOUR INDUSTRY IS SECTION 312 OF THE ACT -- THE REHABILITATION
LOAN PROGRAM,
ESTIMATED FUNDING LEVEL FOR FISCAL '75 IS ABOVE $46
MILLION, JUMPING TO OVER $56 MILLION IN FISCAL '76, CONGRESS
IS PRESENTLY CONTEMPLATING ADDING ANOTHER $50 MILLION FOR
FISCAL '76,
FORMAL APPROVALS FOR FISCAL '75 HAVE (ALREADY) PASSED
THE $52 MILLION MARK,
UNDER THIS SECTION, THE HUD SECRETARY IS AUTHORIZED
TO MAKE LOANS AVAILABLE FOR RESIDENTIAL AND NON-RESIDENTIAL
REHABILITATION.
-7-
APPROVAL IS RESTRICTED TO URBAN RENEWAL PROJECTS,
NEIGHBORHOOD DEVELOPMENT AND CODE ENFORCEMENT PROGRAMS.
WE CAN ALSO MAKE LOANS FOR REHABILITATION THAT IS
NECESSARY OR APPROPRIATE TO AN APPROVED COMMUNITY
DEVELOPMENT PROGRAM (UNDER TITLE I) OR URBAN HOMESTEADING
PROGRAM (UNDER SECTION 810).
SINCE I UNDERSTAND THAT YOU WILL BE COVERING URBAN
HOMESTEADING IN YOUR SESSIONS TODAY AND TOMORROW, I WON'T
GO INTO ITS DETAILS IN THIS SHORT PERIOD. BUT, AS YOU
DISCUSS IT, I'D LIKE YOU TO REMEMBER THAT IT IS A
DEMONSTRATION PROGRAM FOR WHICH I HAVE CONSIDERABLE HOPE.
WE WILL BE ANNOUNCING ABOUT 20 HOMESTEADING CITIES
IN THE NEXT FEW WEEKS,
THE INGENUITY AND AMBITION OF THE CITIES SELECTED IN
DEVISING HOMESTEADING PROGRAMS IS EXCITING. PROPOSALS
FOR REHABILITATION OF HOMESTEAD PROPERTIES RANGE FROM
REVOLVING CONSTRUCTION LOANS TO THE LOCALITIES -- TO COMPLEX
LEVERAGING STRATEGIES TO SECURE PRIVATE FINANCING,
-8-
MANY OF THE CITIES ARE PROVIDING TECHNICAL RESOURCES
FOR HOMESTEADERS -- SUCH AS WORK WRITE-UPS, REHAB
COUNSELING, MONITORING, AND INSPECTORS, THIS IS ONE AREA
IN WHICH THE "SAVVY" OF YOUR INDUSTRY CAN REALLY AID OUR
CITIES, AND I HOPE YOU WILL HELP,
FIVE MILLION DOLLARS OF SECTION 312 LOAN MONIES HAVE
BEEN EARMARKED FOR OUR URBAN HOMESTEADING PROGRAM.
WE AUTHORIZE THE USE OF THESE MONIES WHEN COMPARABLE
TERMS AND CONDITIONS AREN'T AVAILABLE ELSEWHERE,
You COULD HARDLY FIND A BETTER SIGN THAT THE
ADMINISTRATION AND THE CONGRESS ARE REALLY COMMITTED TO
REHABILITATION AS A WAY OF THE FUTURE FOR OUR CITIES,
BUT IT PUTS IT ON YOU TO DELIVER ON EVERY STANDARD
REQUIRED BY FEDERAL LAW AND LOCAL ORDINANCE.
(
-9-
As OF JANUARY FIRST, HUD HAD MADE CLOSE TO 39,000
SECTION 312 LOANS TO REHABILITATE NEARLY 60,000 DWELLING
UNITS AND 250 NON-RESIDENTIAL STRUCTURES -- NOT COUNTING
OUTSTANDING EARLY COMMITMENTS.
A THIRD AVENUE OF ASSISTANCE IS HUD's CONTINUING
PROGRAM TO PROVIDE FUNDS TO LOCALITIES UNDER THE SECTION
115 REHABILITATION GRANT PROGRAM.
THESE GRANTS, EMANATING FROM HUD's PRIOR RENEWAL
PROGRAM, FOR RESIDENTIAL PROPERTY, ARE LIMITED TO
$3,500 -- OR THE ACTUAL COST OF REPAIRS -- WHICHEVER
IS LESS.
THE MONEY MUST BE USED TO BRING THE PROPERTY UP TO
PUBLIC STANDARDS FOR DECENT, SAFE AND SANITARY HOUSING,
APPLICANTS MAY BE OWNER-OCCUPANTS OF PROPERTIES
CONTAINING ONE-TO-FOUR DWELLING UNITS. HIS, OR HER,
INCOME MAY NOT EXCEED $3,000 -- UNLESS HE, OR SHE, IS
REQUIRED TO SPEND MORE THAN 25 PERCENT OF INCOME FOR HOUSING,
-10-
THE ESTIMATED FISCAL '75 GRANT APPROVALS ARE $30
MILLION -- INCREASING TO $32 MILLION IN FISCAL '76.
THE CUMULATIVE TOTAL GRANTS AS OF JANUARY FIRST WERE
$162.5 MILLION -- TO REHABILITATE OVER 65,000 HOUSING UNITS,
A FOURTH AND VERY IMPORTANT SOURCE OF REHAB INDUSTRY
OPPORTUNITY IS OUR RENTAL ASSISTANCE PROGRAM FOR LOWER
INCOME FAMILIES -- UNDER SECTION 8 OF THE AcT.
THIS PROGRAM IS A VALUABLE SAFEGUARD AGAINST
DETERIORATION AND ULTIMATE ABANDONMENT OF INNER CITY
PROPERTIES. IT IS DESIGNED TO ACHIEVE THE END OBJECTIVE
OF PROVIDING DECENT HOUSING FOR THE POOR, WHILE AT THE
SAME TIME -- AND THIS IS IMPORTANT -- SPURRING THE RETURN
OF EXISTING STOCK TO PRODUCTIVE USE,
IT OFFERS THE OWNER AN ECONOMIC INCENTIVE -- THAT IS
ADEQUATE INCOME -- TO PRESERVE AND RESTORE RENTAL HOUSING
STRUCTURES,
IT ASSURES HIM A FAIR MARKET RENT.
-11-
AND IT ALSO PROVIDES RENTAL SUBSIDIES TO POOR TENANTS
IN EXISTING DWELLINGS,
WE WILL FUNNEL $1.6 BILLION INTO THIS PROGRAM IN THE
COMING YEAR.
THE FIFTH AND FINAL ITEM ON MY LAUNDRY LIST OF PLACES
TO LOOK FOR INDUSTRY OPPORTUNITY IS HUD's NATIONWIDE PROGRAM
TO SELL ITS INVENTORY OF REPOSSESSED HOMES ON AN "AS-IS" BASIS,
OUR OBJECTIVE IS TO GET THESE HOUSES BACK IN THE HANDS
OF HOMEOWNERS AS QUICKLY AS POSSIBLE -- AT PRICES THAT WILL
ENCOURAGE THEM -- AND FINANCIALLY ALLOW THEM -- TO REHABILITATE
THEIR OWN HOMES.
ALL OF US HAVE A STAKE OF HONOR AND TRUST IN THIS
UNDERTAKING,
THE PEOPLE WHO WILL OWN AND LIVE ON THESE PROPERTIES
WILL BE INVESTING THEIR PRECIOUS-FEW EARNINGS AND SAVINGS IN
AMERICA'S OLDEST DREAM OF HOMEOWNERSHIP. THEIR SURROUNDING
NEIGHBORS WILL BE CONCERNED WITH CONSEQUENCES -- GOOD OR BAD.
-12-
AND AMERICA, HERSELF, WILL BE WATCHING TO SEE IF THIS
BECOMES JUST ONE MORE CRUEL JOKE ON THE POOR.
I GIVE MY WORD THAT HUD WILL HOLD FAST TO EVERY
COMMITMENT IN MAKING THIS PROGRAM WORK TO THE ADVANTAGE
OF ALL -- INCLUDING THE PRE-SALE REPAIR OF PROPERTIES THAT
ARE HAVING A DETRIMENTAL EFFECT ON THE SURROUNDING NEIGHBORHOOD.
THE AMERICAN PEOPLE WILL EXPECT NO LESS FROM THE FIRMS
WHO WILL BID ON AND WIN THESE PRIVATE REHABILITATION CONTRACTS.
WHAT I HAVE GIVEN YOU IS NOTHING MORE THAN A RAPID RECAP
OF REHAB PROGRAMS AT HUD -- IN LARGE PRINT.
YOU'LL GET DOWN TO THE FINE PRINT AS YOUR CONFERENCE
PROGRESSES.
TAKEN ALTOGETHER, THE ADMINISTRATION AND THE CONGRESS
HAS COMMITTED MILLIONS TO BETTERING THE LOT OF THE NATION'S
HOUSING POOR THROUGH NEIGHBORHOOD CONSERVATION AND REHABILITATION.
THAT IS MONEY WE CAN TALK ABOUT. So LET'S TALK,
I AM PLEASED TO ANSWER YOUR QUESTIONS.