ship-based and shore-based personnel. Ordinarily these men are barred from participating in the national housing program, for families of low income, because communities, which must make a contribution to the maintaining of the low-rent character of these developments, provide that an applicant must reside in that city for a definite period of time. This period of time is usually from 1 to 2 years. This authority is prepared to amend its management program, removing the "residence clause," thus opening the way for military personnel.

We believe that the Navy, the city, and the housing authority can all benefit from such a plan. The city would have its blighted area removed and replaced by soundly planned housing. It would be housing 800 military personnel in the existing housing which would be the equivalent of an industry employing 800 people. The Navy would have made available for it 800 dwelling units for use by its low-income families. The authority would have a better located development. The Navy has also requested transfer of the 538-unit Lanham Act development. If it were transferred to the Navy, the authority could justify and probably build 538 units in its now blighted area. If this were done, the problem of payments in lieu of taxes on the Lanham Act development would create a problem for our city. If transferred to the Navy, civil-service employees would be required to operate and maintain this development. This would mean that the persons operating the development might come from other communities and, because of the curtailment of other naval functions in this area, our employment situation is one which we must always keep in mind. Finally, if this authority could build only 538 units in the redevelopment of its blighted area, it would not be possible for us to make available the 262 units in Park-Holm, the development built under Public Law 671. Thus 262 fewer units would be made available for military personnel.

In its briefest form, what we are proposing is that this authority operate the existing housing for the benefit of the Navy, and build 800 additional units for its own citizen families of low income. In order to do this, we must have from the Navy an indication that it can use in Newport 800 units for its personnel who would qualify as families of low income. For your information, we are attaching a schedule of rents and income limits currently in operation in our low-rent development. These incomes are family incomes, and the rent includes all utilities. We shall appreciate greatly your giving this matter your consideration. Please feel free to call upon us for any further data that would assist you in making a determination.

Sincerely yours,

WILLIAM J. DONOVAN, Executive Secretary for the Authority.

Schedule of rents and income limits: Park-Holm (RI-5-1)

The CHAIRMAN. The committee will now go into executive session. (Whereupon, at 10:20 a. m., the committee went into executive session.)