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11/21/75 - Republican Women's Forum
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1133439
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11/21/75 - Republican Women's Forum
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collections
Carla A. Hills Speeches
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1975-11-21
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1975
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1975-11-21
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1975
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The original documents are located in Box 1, folder "11/21/75 - Republican Women's
Forum" 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States of America his copyrights in all of his unpublished writings in National Archives collections.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
REPUBLICAN WOMEN'S FORUM
NOVEMBER 21, 1975
HUD WAS 10 YEARS OLD A WEEK AGO SUNDAY.
ITS JOB IS TO ASSIST IN THE DEVELOPMENT OF WORKABLE
URBAN COMMUNITIES, WHICH MEANS: DECENT HOUSING IN A SUITABLE
LIVING ENVIRONMENT -- PARTICULARLY FOR PEOPLE WITH LOW AND
MODERATE INCOMES.
You ARE AWARE, I'M SURE -- SINCE MY CRITICS MADE NO
SECRET OF IT, THAT I DIDN'T CLASSIFY AS A "HOUSING EXPERT"
WHEN I TOOK THE JOB AT HUD.
THAT DUBIOUS DISTINCTION GIVES ME SOME REAL ADVANTAGES
-- BECAUSE IT RELIEVES ME OF ANY GREAT PRESSURE TO FOLLOW
THE PLANS MAPPED OUT BY SOME OF THE "BIG HOUSING THINKERS"
OF THE PAST.
AND, I CAN'T HELP THINKING THAT IF THE OLD WAYS OF
DOING THINGS ARE THE BEST WAYS OF DOING THINGS, ONE SIMPLY
HAS TO BE AMAZED AT THE SHAPE OF THINGS IN THE HOUSING
INDUSTRY TODAY.
FORD of LIBRARY
-2-
FOR ONE DOES NOT HAVE TO BE A HOUSING EXPERT TO RECOGNIZE
THAT WE FACE SOME GENUINE PROBLEMS AND THAT IS WHAT YOU ASKED
ME HERE TO ADDRESS.
HOUSING PRODUCTION IS DEPRESSED, PARTICULARLY IN THE
MULTI-FAMILY SECTOR.
OUR CITIES ARE STRUGGLING FOR SURVIVAL.
A CONTAGIOUS INFLATION HAS PRICED THE AVERAGE HOUSE
INTO THE LUXURY CLASS,
BUILDING MONEY AND MORTGAGE MONEY ARE SCARCE COMMODITIES.
AND THE PRICE OF MONEY WHEN IT IS AVAILABLE IS A
SERIOUS DETERRENT,
THE COMPLAINTS ROLL IN FROM SUPPLIERS, BUILDERS,
REALTORS, PLANNERS, HOUSEHOLDERS AND THOSE WHO CAN'T AFFORD
A HOUSE.
GERALO F. FORD )
-3-
DESPITE THE BILLIONS OF TAXPAYER DOLLARS POURED OVER
THE PAST DECADE INTO THE IDEAL OF "PROVIDING A DECENT HOME
FOR EVERY AMERICAN FAMILY", 16 MILLION HOUSEHOLDS IN THIS
NATION ARE OFFICIALLY CLASSED AS "THE HOUSING POOR", WHICH
IS GOVERNMENT SHORTHAND FOR THOSE WHO LIVE IN SLUM CONDITIONS
OR WHO PAY A DISPROPORTIONATELY HIGH PERCENTAGE OF THEIR
INCOME FOR SHELTER,
THE MOST COMMON DENOMINATOR OF ALL SUGGESTIONS, IDEAS,
AND COMPLAINTS IS MONEY.
As WE SAY, SOME OF OUR FRIENDS AND ALL OF OUR CRITICS
WANT US TO GIVE MORE AT THE OFFICE,
As A PREMISE TO OUR QUESTION AND ANSWER PERIOD, LET ME
TAKE YOU ON A QUICK TOUR OF HUD AND SEE WHAT IS GOING ON,
THE BEST THING THAT'S GOING ON IS THE HOUSING AND
COMMUNITY DEVELOPMENT Act OF 1974.
IT GIVES LOCAL COMMUNITIES THE FIRST SAY -- AND CONTROL
-- IN WHAT THEY REALLY NEED.
FORD
-4-
UNDER THE AcT, CONGRESS AUTHORIZED $8.3 BILLION FOR
COMMUNITY DEVELOPMENT IN THE FIRST THREE-YEAR PERIOD --
WITH $2.6 BILLION IN THE CURRENT YEAR.
WHEN WE ASK WHAT IS THE BIGGEST SINGLE CAUSE OF URBAN
DECAY, THE ANSWER IS WASTE!
SOMEHOW IN OUR YEARS OF ABUNDANCE WE DEVELOPED THE
DISASTROUS NOTION THAT CITIES COULD BE DISCARDED AND REPLACED.
PUBLIC AS WELL AS PRIVATE INVESTMENT LITERALLY FINANCED
THE BUILDING OF RING UPON RING OF SUBURBS AROUND OUR URBAN
CENTERS.
As THE CENTRAL CITIES GREW OLD AND THEIR STRUCTURES
BECAME WORN, THOSE WHO COULD, FLED THE CITY CORE FOR THE
NEWLY-BUILT SUBURBS.
THIS SUBURBAN SPRAWL HAS CONSUMED MILLIONS OF SQUARE
MILES OF OPEN SPACES AND HAS ENCOURAGED THE WASTE OF
MILLIONS OF DOLLARS OF URBAN RESOURCES,
-5-
LAST YEAR, IN NEW YORK CITY ALONE, 35,000 UNITS OF
HOUSING WERE ABANDONED. THE CURRENT ABANDONMENT YEARLY
RATE IS 50,000.
THE WASTE IS NOT JUST IN THE HOUSE ITSELF -- BUT IN
THE UTILITIES, STREETS, SCHOOLS, TRANSPORTATION, HOSPITALS,
AND THEATRES, THAT TOOK YEARS TO DEVELOP. AN ABANDONED
HOUSE ABANDONS A PART OF THOSE INDISPENSIBLE SUPPORTIVE
ASSETS AS WELL,
A TIGHTER ECONOMY, A SCARCITY OF ENERGY, AND CHANGING
DEMOGRAPHIC TRENDS NOW DEMAND US TO USE ALL THE INGENUITY
WE CAN SUMMON TO PRESERVE AND RECYCLE THESE ASSETS.
OUR STUDIES CONCLUDE STATISTICALLY WHAT WE SHOULD HAVE
CONCLUDED INTELLIGENTLY MORE THAN A DECADE AGO: THAT IT IS
FAR LESS COSTLY TO RECYCLE A CITY THAN TO BUILD A SUBURB.
IN FACT, AN URBAN REDEVELOPMENT PROGRAM CAN CONSUME
ABOUT 50 PERCENT LESS OF EVERYTHING -- LAND -- CAPITAL --
ENERGY -- AND, AT THE SAME TIME, CREATE HALF AS MUCH
ENVIRONMENTAL DAMAGE,
-6-
FORTUITOUSLY, THE OLD POLICIES OF WASTE NOT ONLY
COLLIDE WITH SKINNIER POCKET-BOOKS, BUT ALSO COLLIDE WITH
RECENT CHANGES IN THE WAY AMERICA LIVES. THERE HAS BEEN
A REMARKABLE INCREASE IN ADULT-ORIENTED HOUSEHOLDS, SINGLES,
YOUNG MARRIEDS, AND ELDERLY ACCOUNT FOR 82 PERCENT OF THE
NATION'S NET POPULATION GAIN BETWEEN 1970 AND 1973.
THERE IS A GROWING NEED FOR LOW AND MODERATE COST
HOUSING ACCESSIBLE TO JOBS AND JOB OPPORTUNITIES, AND FOR
NEARBY SHOPPING FACILITIES, ENTERTAINMENT AND CULTURAL
AMENITIES,
WE CAN DO SOMETHING ABOUT THESE NEEDS, AND IN so
DOING, WE CAN BREATHE LIFE INTO OUR CITIES.
THE SIGN OF THE TIMES IS REFLECTED IN THE HOUSING
INDUSTRY'S ACCEPTANCE OF THE CHALLENGE, TOWNHOUSES, CLUSTER
HOMES AND CONDOMINIUMS ARE ACCOUNTING FOR A GROWING
PERCENTAGE OF SINGLE-FAMILY HOMES.
-7-
OUR FIRST YEAR WITH COMMUNITY DEVELOPMENT GRANTS SHOWS,
UNMISTAKABLY, THAT IF THE FEDERAL GOVERNMENT KEEPS ITS HEAVY
HAND OUT OF LOCAL DECISION-MAKING, LOCAL COMMUNITIES CAN AND
WILL ADDRESS THE PROBLEM.
IT IS SIGNIFICANT THAT 60 PERCENT OF THE $2.6 BILLION
GRANTED UNDER THE 1974 AcT IN ITS FIRST YEAR HAS BEEN
ALLOTTED, VOLUNTARILY BY RECIPIENT COMMUNITIES INTO THE
REHABILITATION AND PRESERVATION OF DECAYING NEIGHBORHOODS.
ANOTHER IMPORTANT PART OF THE NEW Act PROVIDES RENTAL
SUBSIDIES FOR LOWER INCOME FAMILIES -- ALLOWING THEM TO FIND
DECENT QUARTERS IN QUALIFIED BUILDINGS OF THEIR OWN CHOOSING,
AT A RENTAL THEY CAN AFFORD TO PAY,
AGAIN, THE LOCAL COMMUNITY ITSELF HAS THE MAJOR SAY IN
HOW THE RENTAL SUBSIDIES WILL BE USED, WHETHER IN NEWLY
CONSTRUCTED, SUBSTANTIALLY REHABILITATED OR EXISTING HOUSING
UNITS.
-8-
BUT, YOU CAN LEGITIMATELY ASK WHETHER OUR GOAL "TO
HELP PROVIDE A SUITABLE LIVING ENVIRONMENT FOR EVERY AMERICAN
FAMILY" IS NAIVE IN TODAY'S ECONOMY.
INDUSTRY ECONOMISTS CAN SHOW YOU THAT OUR MEDIAN INCOME
FAMILY -- MAKING $13,000 A YEAR -- CAN SUPPORT A HOME COSTING
$32,500. BUT, IN FACT, TODAY'S MEDIAN NEW HOME SELLS FOR
$39,000.
SOME HAVE SUGGESTED THAT THIS EQUASION SIGNALS THE END
TO THE AMERICAN DREAM OF HOMEOWNERSHIP.
BUT, I THINK WHAT IT SIGNALS IS THAT THE TIME HAS COME
FOR US TO START RE-ORDERING OUR PRIORITIES.
Yes, THE COST OF THE MEDIAN HOUSE IS UP,
BUT, so IS THE SIZE OF THAT MEDIAN HOUSE.
IN FACT, IT IS ALMOST 50 PERCENT LARGER THAN IN 1950 --
WITH GUEST ROOMS, "FAMILY" ROOMS, LAUNDRY ROOMS, BATHROOMS,
AND TWO ROOMS TO HOUSE THE CARS,
-9-
OF COURSE, NOT EVERY HOUSE HAS ALL THOSE ROOMS -- BUT
THE MANY THAT DO INFLATE THAT STATISTICAL "MEDIAN".
AND, THE PROMOTIONAL PUSH BEHIND THOSE "EVERYTHING"
HOUSES HAS BEEN ENOUGH TO MAKE THE "AVERAGE" BUYER OF THE
"AVERAGE" HOME BEGIN TO BELIEVE THAT SUCH FRILLS MUST BE
"NECESSITIES".
PERHAPS THEY ARE. BUT MAYBE -- THEY'RE LIKE THE OVER-
POWERED, SLEEKLY APPOINTED AND EXPENSIVE SUPER CARS THAT
COLLIDED WITH OUR ENVIRONMENT CONCERNS AND THE GASOLINE
SHORTAGE,
MODERN BUILDERS WHO LEAVE AN UNESSENTIAL ROOM OR TWO
UNFINISHED HAVE FOUND THAT THEY CAN CUT THE ASKING PRICE OF
A HOUSE FROM $30,000 TO $17,000.
THESE ARE ENCOURAGING TRENDS, BUT THE HOUSING INDUSTRY
IS STILL DEPRESSED, AND YOU HAVE A RIGHT TO ASK WHAT HUD's
DOING ABOUT IT.
-10-
As YOU WELL KNOW, THE HOUSING INDUSTRY ITSELF HAS BEEN
ONE OF THE HARDEST HIT BY THE TWIN EVILS OF INFLATION AND
RECESSION. So, ONE OF THE FIRST THINGS WE'RE DOING AT HUD
IS GIVING OUR STAUNCH SUPPORT TO THE PRESIDENT'S ECONOMIC
RECOVERY PROGRAM.
HOUSING RECOVERY IS TIED IRRETRIEVABLY TO THE RECOVERY
OF THE ECONOMY ITSELF. AND, RIGHT NOW, IMPROVEMENT IS
VISIBLE.
IN HOUSING, SALES OF NEW HOMES HAVE RISEN 37 PERCENT
SINCE THE FIRST OF THE YEAR. THERE HAS BEEN A 40 PERCENT
IMPROVEMENT IN THE LEVEL OF HOUSING STARTS,
THE SECOND THING WE'RE DOING IS FOLLOWING THROUGH ON
THE ADMINISTRATION'S FORCEFUL INITIATIVE TO ENSURE GREATER
AVAILABILITY OF MORTGAGE CREDIT FOR PERSONS OF MODERATE
MEANS.
IN THE PAST 23 MONTHS, HUD HAS OFFERED $15.5 BILLION TO
PURCHASE OVER 500,000 MORTGAGES BEARING INTEREST RATES THAT
ARE BELOW THE MARKET RATE. TODAY THAT IS 7-1/2 PERCENT
WHILE THE MARKET IS AT ABOUT 9 PERCENT.
-11-
FOR THE FAMILY NEEDING A $35,000 MORTGAGE, A 7-1/2
PERCENT HUD MORTGAGE INSTEAD OF A 9 PERCENT MARKET MORTGAGE,
SAVES IT $9,500 OVER THE LIFE OF THE MORTGAGE OR ABOUT $20
A MONTH.
THIS PROGRAM HAS COMPENSATED TO A SIGNIFICANT DEGREE
FOR THE RAPIDLY RISING COSTS OF HOME FINANCING AND HAS THUS
SERVED TO CUSHION THE SEVERITY OF THE DEPRESSION IN HOUSING.
THE THIRD THING WE ARE DOING IS REACTIVATING HUD's
HOMEOWNERSHIP SUBSIDY PROGRAM -- IN SUBSTANTIALLY REVISED
FORM.
THE PROGRAM WHICH I ANNOUNCED IN OCTOBER WILL FOCUS ON
NEW AND SUBSTANTIAL REHABILITATION OF SINGLE-FAMILY HOMES
FOR LOW AND MODERATE INCOME FAMILIES, AND WILL INVOLVE
$264.1 MILLION IN NEW CONTRACT AUTHORITY,
THAT IS ENOUGH TO SUBSIDIZE MORE THAN 250,000 NEW UNITS
OF HOUSING,
-12-
AND, 250,000 UNITS TRANSLATES INTO ABOUT SIX-AND-ONE-HALF
BILLION DOLLARS IN NEW CONSTRUCTION ACTIVITY AND THE CREATION
OF MORE THAN 500,000 NEW CONSTRUCTION JOBS,
CERTAINLY, I AM NOT TELLING YOU THAT THESE FEDERAL
PROGRAMS WILL MAKE EVERYTHING COME UP ROSES IN THE HOUSING
INDUSTRY THE DAY AFTER TOMORROW.
WE WILL NEED TO CONTINUE TO USE THEM -- WITH CAUTION
AND WITH AN EYE ON THE TOTAL ECONOMY,
WE KNOW THAT IF WE MAKE EXCESSIVE USE OF FEDERAL
STIMULANTS, WE WILL INJURE THE HOUSING INDUSTRY JUST AS
IT IS REGAINING ITS HEALTH,
THE INDUSTRY IS FORGING AHEAD. THE UPWARD CURVE MAY
BE SAW-TOOTHED, BUT IS DEFINITELY SAW-TOOTHING ITS WAY IN
THE RIGHT DIRECTION.
By NATURE, I'M PRETTY CAUTIOUS ABOUT MAKING PREDICTIONS
ON ANYTHING so CHANCEY AS THE PROBABLE RECOVERY RATE OF ANY
INDUSTRY IN TODAY'S ECONOMY,
-13-
BUT, I HONESTLY BELIEVE THE HOUSING INDUSTRY ALONG
WITH THE OVERALL ECONOMY HAS FULLY TURNED THE CORNER.
ONE THING WE DO NEED IS INCREASED CONFIDENCE.
I THINK WE HAVE ENOUGH EVIDENCE ON THE BOOKS TODAY
TO JUSTIFY IT.
THANK YOU VERY MUCH.