provide coverage in the event of termination of the construction contract prior to completion of the project. It is anticipated that his language will be used by each of the services henceforth.

I trust that this information will meet the requirements of the committee in this matter.

DEPARTMENT OF THE ARMED SERVICES HOUSING PROJECT GUARANTY WITH RESPECT TO MORTGAGE PAYMENTS

195-, by the

This guaranty, executed this --- day of of the United States of America (hereinafter called the Department), represented by the Secretary of the -- (hereinafter called the Secretary), witnesseth:

Whereas under the terms of a certain housing contract entered into on 195, by and among the Department,‒‒‒‒‒‒‒‒‒ -- a Delaware corporation (hereinafter referred to as the mortgagor-builder), and (hereinafter referred to as the eligible builder), the Department has agreed, among things, to guarantee the payment, upon completion of the said housing contract, of the note of the mortgagor-builder executed pursuant to said housing contract to the extent that advances made against said note have been approved by the Federal Housing Commissioner:

Now, therefore, in consideration of the material provisions contained in said housing contract and the obligations thereby created among the parties thereto the Department hereby guarantees and undertakes, in accordance with the provisions of title IV of the Housing Amendments of 1955 (Public Law 345, 84th Cong.; 69 Stat. 635) and the provisions of said housing contract, as follows: 1. The Department guarantees to the payee of said note (said payee being hereinafter referred to as the mortgagee) and to the Federal Housing Commissioner, as their interests may appear, the payment, in accordance with the terms of said note, of said advances and interest thereon, said note being, secured by a first mortgage or deed of trust insured by the Federal Housing Commissioner under the provisions of title VIII of the National Housing Act, as amended, for the advancement of moneys for the purposes of constructing the housing project covered by said housing contract and consisting of housing units on a site at --, provided that, this guaranty shall become effective only upon the final endorsement by the Federal Housing Commissioner of said note for mortgage insurance or upon termination of the housing contract at the convenience of the Department prior to completion.

2. The Department will, subject to the conditions stated in the foregoing guaranty, make each periodic payment becoming due to the mortgagee on said note in accordance with the terms thereof without any requirement that the mortgagee shall have made a prior demand to the mortgagor-builder for such payment.

3. The terms and conditions of this guaranty shall not impair the security of the above-mentioned mortgage or deed of trust or the rights of the Federal Housing Commissioner under the contract of insurance with respect to said mortgage or deed of trust.

4. This guaranty and the right to receive payments hereunder may be assigned and reassigned to any financial institution or mortgagee, approved by the Fed

eral Housing Commissioner, including any Federal agency, without the prior approval of the Secretary; provided that, in the event of such an assignment, the assignee shall file written notice thereof and a true copy of the instrument of assignment with the Secretary and the disbursing officer designated by the Secretary to make such payments.

to

(Secretary)

This guaranty and the right to receive payments hereunder are hereby assigned this day of 195_.

By

(Mortgagee)

Mr. BROWN. Mr. Clerk, will you call the next witness?

The CLERK. The Honorable Paul Rogers, from the State of Florida. Mr. BROWN. Come around, Mr. Rogers.

STATEMENT OF HON. PAUL G. ROGERS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF FLORIDA

Mr. ROGERS. Thank you, Mr. Chairman, and gentlemen of the committee. I won't take very long. I realize you are pressed for time. We have a situation in Florida for which we would like to offer an amendment for the consideration of the committee, to handle the situation of disposing of the housing units that are there as provided by the bill, where you are giving authority to the public housing authority to transfer title to these agricultural-work camps.

Now, I have 6 in my area, 2 in Pahokee, Fla.; 2 in Belle Glade, Fla.; and 1 in Pompano, Fla; and there are also 2 in Homestead. We want to assure that these facilities will remain available to agricultural workers in our area. There is a great shortage, and we need the facilities that are presently there. In fact, really we need more.

But in order to assure that these facilities will remain, we would like to propose this amendment for which we have language, which I would like to submit to the committee for its consideration, to assure that these facilities will remain under State direction.

Mr. BROWN. Do you have the amendment?

Mr. ROGERS. I do. I may read it or present it, just as the committee prefers. Everyone is agreed, I believe. I don't think there would be any objection to it. It would apply to Florida only, to handle our situation, and I think it would be in accordance with the purposes of the bill entirely. It merely states that we would like to ask a change in the period of time in which this may be accomplished from 12 months to 18 months. I think the present bill proposes a time limit of 12 months, but I hope the committee would consider changing that somewhat. Maybe if the committee didn't want to change it to 18, it could change to 14 months-we just suggested 18 so our legislature would have plenty of time to enact the necessary legislation there for these four agencies to take title, and to see that they would not dispose of these units, but would continue to operate them for the benefit of the agricultural workers.

The language, in giving preference to the agricultural workers, would be the same as used presently. It merely assures that these would be continued to be operated, to maintain this facility, through the State agencies.

Mr. BROWN. Are there any questions of Mr. Rogers?

Mr. ROGERS. I have a statement I would like to present for the record, if I may, Mr. Chairman.

Mr. BROWN. It may be inserted in the record. (The statement is as follows:)

STATEMENT OF CONGRESSMAN PAUL G. ROGERS

The farm-labor camps for housing agricultural workers referred to in section 503 of H. R. 10157, were constructed during the war to meet a critical housing shortage for housing domestic and offshore agricultural workers. They were constructed under the authority of legislation amendatory of the Farmers' Home Administration Act and the Bankhead-Jones Farm Tenant Act. After the cessation of the war and the farm-labor program under which the Government had assumed the responsibility of recruiting and moving farm laborers from one section of the country to another had ceased, the Congress, in 1947, enacted Public Law 298 which among other things authorized the leasing of these farm-labor housing facilities to nonprofit associations of farmers. The camps in Florida were operated under leases from the Department of Agriculture and in some instances were subleased by the nonprofit associations of farmers to public housing agencies which operated the facilities and gave preference to agricultural workers.

As a result of Reorganization Plan No. 3, the administration of these facilities was transferred to the United States Public Housing Administration. The Housing Acts of 1949 and 1950, which also authorized the transfer of the administration of these facilities to the Public Housing Administration, provided that preference in the use of the facilities be continued to be given to agricultural workers and thus continued in effect the purpose for which the housing was initially constructed and for which it has consistently been used.

The need for these facilities for housing agricultural workers is probably more critical today than when the facilities were originally constructed due to the fact that many of the facilities which had heretofore been used were of an emergency character and are no longer suitable for such purposes. In addition, because of the substantial decline in farm income and the almost total lack of any facilities for financing housing of this type, it has not been possible for farmers to obtain sufficient housing to meet their needs. It is imperative, therefore, that these facilities continue as they have in the past to be available for housing farm labor on a preferential basis.

Section 503 of the bill would transfer title to these facilities to local public housing authorities upon their request and upon their certification that such housing facilities are needed and that preference for occupancy would be given to low-income agricultural workers. However, under the bill no procedure is provided for assuring the fulfillment of such representations and the continued availability of such housing for agricultural workers. Unless the bill is modified there would be no restriction upon the transfer, sale, or other disposal of the facilities once title had been transferred.

The amendment which I propose would provide for the transfer of these farmlabor camps situated in Florida to the local public housing agencies as soon as the State of Florida enacted appropriate enabling legislation authorizing the public housing agency to accept title and requiring such agencies to continue to make the facilities available to low-income agricultural workers.

The farmers in Florida who are being served by these facilities and the public housing agencies which have been operating these farm-labor camps are in complete accord with the proposed amendments and have jointly asked that the amendments be adopted.

The amendments are applicable solely to Florida to meet local conditions in Florida and they will have no effect upon the facilities located in other States.

Mr. BROWN. Are there any questions? If not, we are very glad to have your statement.

Mr. ROGERS. Thank you, Mr. Chairman.

The CLERK. The next witness is the Honorable John Moss, of California.

Mr. BROWN. All right, Mr. Moss, we are very glad to have you. You may proceed.

STATEMENT OF HON. JOHN MOSS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA

Mr. Moss. Thank you, Mr. Chairman, and gentlemen. I am here to briefly speak in support of the same section which was dealt with by Mr. Rogers, the farm-labor camps. There are a number of these camps operating in my area, and those in charge of them find that the present regulations on public housing make it virtually impossible for the camps to be maintained and modified as necessary to best provide housing for the agricultural workers they were designed to serve.

It is felt that with the adoption of this section of the proposed legislation, the local authorities would be able to undertake programs of better maintenance and modification to the degree necessary to accomodate the type of agricultural workers who ordinarily occupy them.

Mr. RAINS. Are you speaking, Mr. Moss, in support of the section. in the bill pending before the committee?

Mr. Moss. Yes, I am, Mr. Rains. This section was originally introduced by me 2 years ago as a separate bill.

Mr. RAINS. Yes.

Mr. Moss. The committee included the section in the legislation reported last year, but at the time of the adoption of Mr. Wolcott's substitute, it was deleted. I believe Mr. Wolcott discussed the matter with you on the floor. There was some hope that we would be able at that late hour to enact a separate piece of legislation. Because of the damage now in the area, as a result of floods this past year, it becomes extremely important to these people, that they have the right of operation, the flexibility which would be afforded them through the transfer of title to the local authority as provided in this legislation.

It is most important to them. There aren't a great many of these camps across the country, but where they operate, they contribute materially to the agriculture and to the economy of the area.

Mr. RAINS. You are not asking for the adoption of any amendment such as Congressman Rogers had? You are satisfied with the bill as it is?

Mr. Moss. We are completely satisfied, after seeing Mr. Rogers' amendments late yesterday afternoon, I called the people in California, who were then holding a convention at Del Ray, Calif., and read the amendments to them, and I heard from them that they had no objection, they would not like to see them apply in the case of California. I understand I am correct in stating that they would not like them to apply in Arizona. His amendments would deal entirely with a Florida problem, one which is not confronting the people I represent in my State.

Mr. BROWN. Are there any questions of Mr. Moss?

Mr. RAINS. I think you have made a very good statement, Mr. Moss.

Mr. BROWN. We are delighted to have your testimony and it will be considered when we go into executive session.

Mr. Moss. Thank you, Mr. Chairman.

Mr. BROWN. Mr. Clerk, do we have any other witnesses?

The CLERK. The next witness, Mr. Chairman, is the Honorable Horace Seely-Brown, of Connecticut.

STATEMENT OF HON. HORACE SEELY-BROWN, JR., A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CONNECTICUT Mr. SEELY-BROWN. Mr. Chairman, I am grateful for the opportunity to express my support of the disaster-housing legislation which will be considered by your committee in connection with the general housing bill. These three bills, S. 2854 (H. R. 8116), S. 2855 (H. R. 8122), and S. 2859 (H. R. 8120) have been passed by the Senate, and it is my hope that favorable action may be taken on them by the House before the work of this Congress has been completed.

S. 2854 (H. R. 8116) would amend the National Housing Act to increase to $12,000 from $7,000 the maximum principal amount of a mortgage that may be insured by the Federal Housing Administration to enable reconstruction of a single-family home destroyed or damaged in a major disaster. A study by the Senate Banking and Currency Committee on Federal disaster insurance revealed that although more than 6,000 homes were destroyed or severely damaged in 6 Northeaster States by the ravages of Hurricane Diane in August of 1955, only 2 applications under section 203 (h) of the National Housing Act were received subsequent to June 30, 1955, and 1 had been approved. Enactment of this bill would make it possible for more homeowners in disaster stricken areas to participate in this program by raising the mortgage limit to a more realistic level.

S. 2855 (H. R. 8122) provides authority to stockpile temporary housing units of a mobile or portable character for disaster relief. This bill, as amended, provides authority for the Commissioner of the Public Housing Administration to enter into contracts on a standby or emergency basis for emergency production and delivery of housing and equipment into a location declared by the President to be a major disaster area, and authorizes the Commissioner to use $5 million of funds which he can borrow from the Treasury under section 20 of the United States Housing Act of 1937 with which to purchase the emergency housing and equipment.

I personally witnessed the terrible destruction caused in Connecticut by the floods and hurricanes of 1955. I know that one of the most urgent problems arising out of such disasters is the provision of immediate and adequate temporary shelter for the victims whose homes are destroyed. This bill would provide a flexible plan under which housing can be made available at the earliest possible moment after the disaster occurs. The availability of movable housing units would, I believe, provide one of the most effective forms of assistance to those families who lose their homes as a result of floods and other disasters. S. 2859 (H. R. 8120) amends title II of the act of June 28, 1950 (54 Stat. 676), to permit victims of a major disaster to be considered for accommodations in federally aided, low-rent housing units on a rent-free basis. It suspends the eligibility provisions of the Housing Act of 1937 to make it possible for needy disaster victims to occupy such housing units without regard to their ability to pay rent. The bill also authorizes the Public Housing Administration to enter into contracts with local agencies for advance payment or reimbursement for low-rent housing furnished to disaster victims. An expenditure not to exceed $500,000 from funds made available to the agency for low-rent public housing is authorized for this purpose. In the aftermath of the 1955 floods, disaster victims were in some cases precluded