"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 122 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

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 com

mittee.

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 FHÀ. 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

Finance Agency on housing and urban renewal legislation pending before your committee.

Programs of each of the five constituent organizations of our Agency are dealt with in this legislation. If agreeable to you, I would like to have the head of each constituent present a detailed statement of the views of the Housing and Home Finance Agency on the provisions relating to his operations. I will then be able with him to answer questions on those provisions.

At this time, however, I wish to make some general observations concerning this legislation and to comment on a few of the major proposals involved.

As you know, two comprehensive housing bills have been introduced by members of your committee: H. R. 9537, introduced on February 27 by Congressman Widnall, and H. R. 10157, introduced on March 26 by Congressman Rains. Both bills contain provisions for the continuation of several basic programs of the Housing and Home Finance Agency-FHA insurance for home repair and improvement loans, FHA mortgage insurance, financial assistance for low-rent public housing, college housing loans, and grants to assist urban planning.

Our statements will comment on each of the provisions in those bills.

Although the bills contain many similar provisions, they differ in a number of important respects. For reasons we will explain we strongly urge the enactment of H. R. 9537. I have been authorized by the Director of the Bureau of the Budget to advise that its enactment would be in accord with the program of the President.

URBAN RENEWAL

Major provisions of H. R. 9537 relating to several programs of the agency would greatly assist the efforts of our cities to eliminate and prevent slums and blight. The terms of repair and improvement loans eligible for FHA title I assistance would be made substantially more liberal by both H. R. 10157 and H. R. 9537. This would greatly assist home repair and rehabilitation which constitute a principal part of the urban renewal projects being planned or undertaken by cities.

As you know, the problem of adequately relocating displaced families generally constitutes one of the serious obstacles to urban renewal projects involving slum clearance. In recognition of this problem, the Congress authorized a new program of mortgage insurance, as part of the Housing Act of 1954, to assist in the provision of low-cost housing for families displaced by urban renewal or other Governmental action in communities which have workable programs for eliminating and preventing slums and blight.

However, as enacted, the mortgage insurance terms in that legislation (sec. 221 of the National Housing Act) gave almost no mortgage insurance advantage over that available in other FHA programs. Consequently, there has been very little interest in construction or rehabilitation under that section. Both H. R. 9537 and H. R. 10157 would substantially increase the mortgage insurance advantages under section 221 to make it effective as an aid to urban renewal.

LOW-RENT PUBLIC HOUSING

Displaced low-income families naturally present the greatest relocation problem. Additional low-rent public housing is essential for its solution. H. R. 10157 would authorize a 3-year public-housing program of 50,000 additional dwelling units each year. H. R. 9537 would authorize, and the Housing Agency recommends, a 2-year program totaling 70,000 additional public-housing units. The Housing Agency's recommendation for a 2-year program is based on the assumption that the Congress, as well as the Housing Agency, will wish to reconsider the size of the program after there has been an opportunity to observe the extent to which private enterprise is able to provide lower cost housing, particularly housing for displaced families under the more liberal terms which are being proposed for the FHA's section 221 program.

Our recommendation for the enactment of a 70,000 unit program takes into consideration our best judgment of the current ability of our localities to plan and execute low-rent projects efficiently. It also takes into consideration the practical necessity for presenting a program which can gain stabilized support in the Congress.

I feel that it is better to gain acceptance for a modest and smoothly moving program than to engage in controversy over large-scale proposals which, when finally acted upon, emerge as modest stop-and-go programs which are difficult to administer.

In my judgment, the low-rent housing program proposed by H. R. 9537 represents the most acceptable solution to a difficult problem. The proposed additional 70,000 units, along with units becoming vacant in existing low-rent projects, would be adequate, in our judgment, to serve the needs of displaced families. However, the new and the vacated units would not be limited to the needs of displaced families, but could be made available to other low-income families in the community.

In addition to the regular 3-year low-rent housing program proposed by H. R. 10157, that bill would provide for a special 3-year program totaling 30,000 low-rent public housing units to be designed specifically for elderly families and single persons. H. R. 9537 specifies no statutory number of units to be made available solely for the elderly. Instead, it would give the local community discretion in deciding what portion of its low-rent units, both old and new, should be made available to them. H. R. 9537 would permit Federal assistance for the construction of new housing or the remodeling of existing housing especially designed to serve the elderly.

In connection with proposals for additional public housing, I would like to call the attention of your committee to a very important matter which is not dealt with at all by H. R. 10157, but is covered by H. R. 9537. Under existing law, a local community may not receive Federal loans or capital grants for urban renewal projects, nor may it receive special FHA mortgage insurance aids for urban renewal, unless the local community first adopts a workable program for the elimination. and prevention of slums and blight.

The Housing Act of 1954, in accordance with the recommendations of the President's Advisory Committee on Housing, similarly authorized new public housing only if the community first adopted a workable program.