July 1, 1949, may, with the approval of the President, contract to make capital grants, with respect to projects assisted under this title, aggregating not to exceed $1,000,000,000, which limit shall be increased by further amounts of $500,000,000 on July 1 in each of the years 1956 and 1957, respectively."

DISASTER AREAS

SEC. 402. (a) Title I of the Housing Act of 1949, as amended, is amended by adding at the end thereof the following new section:

"DISASTER AREAS

"SEC. 111. Where the local governing body certifies, and the Administrator finds, that an urban area is in need of redevelopment or rehabilitation as a result of a flood, fire, hurricane, earthquake, storm, or other catastrophe which the President, pursuant to section 2 (a) of the Act entitled 'An Act to authorize Federal assistance to States and local governments in major disasters, and for other purposes' (Public Law 875, Eighty-first Congress, approved September 30, 1950), as amended, has determined to be a major disaster, the Administrator is authorized to extend financial assistance under this title for an urban renewal project with respect to such area without regard to the following:

"(1) the 'workable program' requirement in section 101 (c), except that any contract for temporary loan or capital grant pursuant to this section shall obligate the local public agency to comply with the 'workable program' requirement in section 101 (c) by a future date determined to be reasonable by the Administrator and specified in such contract;

"(2) the requirements in section 105 (a) (iii) and section 110 (b) (1) that the urban renewal plan conform to a general plan of the locality as a whole and to the workable program referred to in section 101 (c);

"(3) the 'relocation' requirements in section 105 (c): Provided, That the Administrator finds that the local public agency has presented a plan for the encouragement, to the maximum extent feasible, of the provision of dwellings suitable for the needs of families displaced by the catastrophe or by redevelopment or rehabilitation activities;

"(4) the 'public hearing' requirement in section 105 (d);

"(5) the requirements in sections 102 and 110 that the urban renewal area be a slum area or a blighted, deteriorated, or deteriorating area; and "(6) the requirements in section 110 with respect to the predominantly residential character or predominantly residential reuse of urban renewal

areas.

In the preparation of the urban renewal plan with respect to a project aided under this section, the local public agency shall give due regard to the removal or relocation of dwellings from the site of recurring floods or other recurring catastrophes in the project area."

(b) Subparagraph (A) of section 220 (d) (1) of the National Housing Act is amended to read as follows:

"(A) be located in (i) the area of a slum clearance and urban redevelopment project covered by a Federal-aid contract executed, or a prior approval granted, pursuant to title I of the Housing Act of 1949 before the effective date of the Housing Act of 1954, or (ii) an urban renewal area (as defined in title I of the Housing Act of 1949, as amended) in a community respecting which the Housing and Home Finance Administrator has made the certification to the Commissioner provided for by subsection 101 (c) of the Housing Act of 1949, as amended, or (iii) the area of an urban renewal project assisted under section 111 of the Housing Act of 1949, as amended: Provided, That, in the case of an area within the purview of clauses (i) or (ii) of this subparagraph, a redevelopment plan or an urban renewal plan (as defined in title I of the Housing Act of 1949, as amended), as the case may be, has been approved for such area by the governing body of the locality involved and by the Housing and Home Finance Administrator, and the Administrator has certified to the Commissioner that such plan conforms to a general plan for the locality as a whole and that there exist the necessary authority and financial capacity to assure the completion of such redevelopment or urban renewal plan: And provided further, That, in the case of an area within the purview of clause (iii) of this subparagraph, an urban renewal plan (as required for projects assisted under such section 111) has been approved for such area by such governing body and by the Administrator, and the Administrator has certified to the Commissioner that such plan

conforms to definite local objectives respecting appropriate land uses, improved traffic, public transportation, public utilities, recreational and community facilities, and other public improvements, and that there exist the necessary authority and financial capacity to assure the completion of such urban renewal plan, and".

(c) Section 221 (a) of the National Housing Act is amended

(1) by adding immediately before the period at the end of the first sentence a comma and the following: "or (3) there is being carried out an urban renewal project assisted under section 111 of the Housing Act of 1949, as amended"; and

(2) by striking out "clause (2)" each place it appears in the last proviso and inserting in lieu thereof “clause (2) or (3)”.

(d) The second sentence of section 701 of the Housing Act of 1954 is amended to read as follows: "The Administrator is further authorized to make planning grants for similar planning work (1) in metropolitan and regional areas to official State, metropolitan, or regional planning agencies empowered under State or local laws to perform such planning; (2) to cities, other municipalities, and counties having a population of twenty-five thousand or more according to the latest decennial census which have suffered substantial damage as a result of a flood, fire, hurricane, earthquake, storm, or other catastrophe which the President, pursuant to section 2 (a) of the Act entitled 'An Act to authorize Federal assistance to States and local governments in major disasters, and for other purposes' (Public Law 875, Eighty-first Congress, approved September 30, 1950), as amended, has determined to be a major disaster; and (3) to State planning agencies, to be used for the provision of planning assistance to the cities, other municipalities, and counties referred to in clause (2) hereof."

URBAN PLANNING AUTHORIZATION

SEC. 403. The last sentence of section 701 of the Housing Act of 1954 is amended by striking out "$5,000,000" and inserting in lieu thereof "$10,000,000".

RESERVE OF PLANNED PUBLIC WORKS

SEC. 404. Section 703 of the Housing Act of 1954 is amended by inserting before the period at the end thereof a comma and the following: "or any educational institution (as defined in section 404 (b) of the Housing Act of 1950)".

TITLE V-PUBLIC HOUSING

CONTRACTS FOR ANNUAL CONTRIBUTIONS

SEC. 501. (a) Subsection (i) of section 10 of the United States Housing Act of 1937 is amended, effective August 1, 1956, to read as follows:

"(i) Notwithstanding any other provisions of law (except as hereinafter provided in this section) the Authority may enter into new contracts for loans and annual contributions after July 31, 1956, for not more than fifty thousand additional dwelling units, which amount shall be increased by fifty thousand additional dwelling units on July 1, 1957, and on July 1, 1958, and may enter into only such new contracts for preliminary loans in respect thereto as are consistent with the number of dwelling units for which contracts for annual contributions may be entered into hereunder: Provided, That any balance of the authorization provided by this subsection as amended by section 108 (b) of the Housing Amendments of 1955, not utilized by July 31, 1956, shall be available in any succeeding year: And provided further, That no new contracts for loans and annual contributions for additional dwelling units in excess of the number authorized in this sentence shall be entered into unless authorized by the Congress."

(b) Subsection (d) of section 21 of such Act is amended by striking out "of $336,000,000" and inserting in lieu thereof "$348,000,000”.

(c) Clause (2) of the third proviso in the first paragraph (captioned “Annual contributions") under the heading "Public Housing Administration" in title I of the Independent Offices Appropriation Act, 1953 (66 Stat. 403), is repealed.

LOW-RENT HOUSING FOR THE ELDERLY

SEC. 502. (a) Paragraph (2) of section 2 of the United States Housing Act of 1937 is amended by adding at the end thereof the following new sentences:

"The term 'families' includes (A) a person sixty-five years of age or over, and (B) the remaining member of a tenant family. The term 'elderly families' means families the head of which is sixty-five years of age or over."

(b) Section 10 of such Act is amended by adding at the end thereof the following new subsection:

"(m) For the purpose of increasing the supply of low-rent housing for elderly families, the Authority may assist the construction of new housing in order to provide accommodations designed specifically for such families, and may, with the approval of the President, after July 1, 1956, without regard to the provisions of any other law, enter into contracts for loans and annual contributions providing for not to exceed ten thousand new dwelling units designed specifically for such families (either as separate projects or as parts of projects), which number shall be increased by ten thousand dwelling units on July 1, 1957, and on July 1, 1958. Such new dwelling units shall be in addition to the dwelling units for which annual contributions contracts are authorized by any other provision of law. The total authorization otherwise provided for annual contributions under this Act shall be increased by $4,000,000 per annum on July 1, 1956, and by the same amount on July 1, 1957, and on July 1, 1958. In the selection of tenants from among low-income families who are eligible applicants for occupancy in the dwelling units provided for under this subsection, a first preference (which shall be prior to any of the preferences provided in such subsection (g)) shall be extended to elderly families."

(c) Section 15 (5) of such Act is amended by inserting immediately before the colon in the first sentence the following: "or $2,250 in the case of accommodations designed specifically for elderly families".

FARM LABOR CAMPS

SEC. 503. Section 12 (f) of the United States Housing Act of 1937 is amended by adding at the end thereof the following: "Notwithstanding any other provision of law, upon the filing of a request therefor within twelve months after the date of the enactment of this sentence, the Authority shall relinquish, transfer, and convey, without monetary consideration, all of its rights, title, and interest in and with respect to any such project or any part thereof (including such land as is determined by the Authority to be reasonably necessary to the operation of such project, and including contractual rights to revenues, reserves, and other proceeds therefrom), to any public housing agency whose area of operation includes the project, upon a finding and certification by the public housing agency (which shall be conclusive upon the Authority) that the project is needed to house persons and families of low income and that preference for occupancy in the project will be given first to low-income agricultural workers and their families and second to other low-income persons and their families. Upon the relinquishment and transfer of any such project it shall cease to be a low-rent project within the meaning of this Act, and the Authority shall have no further jurisdiction over it, except that in any conveyance under the preceding sentence the Authority may reserve to the United States any mineral rights of any nature whatsoever upon, in, or under the property, including such rights of access to and the use of such parts of the surface of the property as may be necessary for mining and saving the minerals. Any project or part thereof not relinquished and conveyed pursuant to this subsection or under a contract for disposal pursuant to this subsection within twelve months after the date of the enactment of this sentence shall be disposed of by the Authority pursuant to subsection (e) of section 13 of this Act, notwithstanding the parenthetical clause in such subsection."

TRANSFER OF CERTAIN FEDERALLY HELD PROPERTY

SEC. 504. (a) Notwithstanding any other provision of law, the Housing and Home Finance Administrator is authorized to sell and convey, at fair market value as determined by him on the basis of an appraisal made by an independent real-estate expert, to the city of Alexander, Virginia, or to the Alexandria Redevolpment and Housing Authority, or to any agency or corporation established or sponsored in the public interest by such city, all of the right, title, and interest of the United States in and to the Chinquapin Village housing project, VA-44131, located in Alexandria, Virginia. Any sale pursuant to this authorization shall be made within six months after the date of the enactment of this subsection and shall be on such terms and conditions as the Administrator shall determine.

(b) (1) Notwithstanding any other provision of law, the Public Housing Commissioner is authorized and directed to sell and convey by quitclaim deed to the Georgia Institute of Technology, upon full payment in cash of the purchase price determined under paragraph (2), all of the right, title, and interest of the United States in and to that real property (including furniture, fixtures, and equipment located on the property on the date of the execution of the contract of sale under this subsection), situated in Atlanta, Georgia, known as the Techwood Dormitory and more particularly described as follows:

Commencing at the intersection of the south line of North Avenue with the east line of Techwood Drive; thence running eastwardly along the south line of North Avenue a distance of 94.47 feet to the east line of property formerly owned by Mrs. Emma L. Ellis; thence south 00 degrees 121⁄2 minutes east 155 feet more or less to the south line of an alley formerly known as Linden Alley and the north line of property owned by Mildred W. Seydel; thence north 89 degrees 45 minutes east along the south line of said alley 170 feet more or less to a point in the south side of said alley which is distant 100 feet westerly from the west line of Williams Street; thence south 00 degrees 12% minutes east, parallel with the westerly line of Williams Street, 290 feet more or less to the north side of Linden Avenue; thence southerly across Linden Avenue to a point on the south side thereof which point is 108 feet west of the west line of Williams Street; thence running west 281 feet more or less along the south side of Linden Avenue to its intersection with the east line of Techwood Drive; thence northerly along the east line of Techwood Drive 455 feet more or less to its intersection with the south line of North Avenue and the point of beginning. (2) The purchase price of the property referred to in paragraph (1) shall be the fair market value of the land described in such paragraph on the date of the execution of the contract of sale under this subsection, as determined by the Public Housing Commissioner, excluding for purposes of such determination the value of any buildings, furniture, fixtures, and equipment located on such land.

TITLE VI-FARM HOUSING

SEC. 601. Title V of the Housing Act of 1949 is amended as follows:

(1) In the first sentence of section 511, strike out "and" immediately after "July 1, 1954,", and insert immediately before the period at the end of the sentence a comma and the following: "and an additional $100,000,000 on and after July 1, 1956".

(2) In section 512, (A) strike out "and 1955" and insert in lieu thereof "1955 and 1956", and (B) strike out "and $2,000,000" and insert in lieu thereof "$2,000,000, and $2,000,000”.

(3) In section 513, strike out "and $10,000,000 on July 1 of each of the years 1950, 1951, 1952, 1953, 1954, and 1955" and insert in lieu thereof "$10,000,000, and $10,000,000 on July 1 of each of the years 1950, 1951, 1952, 1953, 1954, 1955, and 1956".

TITLE VII-COLLEGE HOUSING

SEC. 701. Section 401 (d) of the Housing Act of 1950 is amended by striking out “$500,000,000” and inserting in lieu thereof "$750,000,000".

TITLE VIII-ARMED SERVICES HOUSING MORTGAGE INSURANCE SEC. 801. (a) Section 801 (g) of the National Housing Act, as amended, is amended to read as follows:

"(g) The term 'State' includes the several States, and Alaska, Hawaii, Puerto Rico, the District of Columbia, Guam, the Virgin Islands, and the Canal Zone." (b) Section 803 (a) of such Act is amended by striking out "1956" and inserting in lieu thereof "1959".

(c) Section 803 (a) of such Act is further amended by striking out the first proviso and inserting in lieu thereof the following: "Provided, That the aggregate amount of principal obligations of all mortgages insured under this title (except mortgages insured pursuant to the provisions of this title in effect prior to the enactment of the Housing Amendments of 1955) shall not exceed $1,666,500,000 :".

(d) Subparagraph (B) of section 803 (b) (3) of such Act is amended by striking out "$13,500" each place it appears and inserting in lieu thereof "$15,000" and by inserting before the semicolon at the end thereof a colon and the following: "Provided further, That in high-cost areas (as determined by the Secretary) the 77603-56-2

Commissioner shall increase both such average amounts to not to exceed $16,500". (e) The last sentence of section 803 (c) of such Act is amended to read as follows: "The Commissioner may waive or reduce the payment of premiums provided for herein."

(f) Subparagraph (C) of section 803 (b) (3) of such Act, and sections 403 (a) and 403 (b) of the Housing Amendments of 1955, are amended by striking out "eligible builder" wherever it appears and inserting in lieu thereof "eligible bidder".

(g) Section 403 (a) of the Housing Amendments of 1955 is amended by striking out "the builder" wherever it appears and inserting in lieu thereof "the mortgagor".

(h) Section 403 (a) of the Housing Amendments of 1955 is further amended by striking out "with any builder".

(i) Title IV of the Housing Amendments of 1955 is further amended by adding at the end thereof the following new section:

"SEC. 410. (a) In the construction of housing under the authority of this title and title VIII of the National Housing Act, as amended, the following are the maximum limitations on net floor area for each unit:

"(1) For flag officers and general officers, two thousand one hundred square feet.

"(2) For captains in the Navy and colonels, one thousand six hundred and seventy square feet.

"(3) For commanders and lieutenant commanders and for lieutenant colonels and majors, one thousand four hundred square feet.

"(4) For officers below the grade of lieutenant commander or major, one thousand two hundred and fifty square feet.

"(5) For enlisted members, one thousand and eighty square feet.

As used in this section, the term 'net floor area' means the space inside the exterior walls, excluding basement, service space instead of basement, attic, garage, and porches.

"(b) The maximum limitations prescribed by subsection (a) are increased"(1) 10 per centum for quarters outside the United States and outside the District of Columbia; and

"(2) 10 per centum for quarters of the commanding officer of any station, base, or other installation, based on the grade authorized for that position." The CHAIRMAN. Our first witness is Mr. Cole, who is Administrator of the Housing and Home Finance Agency.

Mr. Cole, you may proceed as you desire.

STATEMENT OF HON. ALBERT M. COLE, ADMINISTRATOR, HOUSING AND HOME FINANCE AGENCY

Mr. COLE. Thank you, Mr. Chairman.

As you know, I am always happy indeed to have the opportunity to appear before the distinguished chairman and this great committee.

The CHAIRMAN. You were for a long time one of the most valued members of this committee. We are always glad to have you come back.

Mr. COLE. Thank you, sir.

I have a general statement which I would like to read and, subject to the will of the chairman, suggest that following my statement, then Mr. Mason read his statement with respect to FHA. After he has read his statement, we will subject ourselves to questioning by the committee and then proceed with each of the constituent agencies, item by item. We think this will make for an orderly record.

The CHAIRMAN. We will adopt your suggestion. You may read your statement.

Mr. COLE. Mr. Chairman and members of the committee, I appreciate the opportunity to present the views of the Housing and Home