and in the Southern States, data on whites and nonwhites have, except for the decennial censuses, been rather meager in amount. In fact in this area operating statistics on certain of the Agency programs are a major source of information. As was indicated in the reply to question 6, PHA publishes reports showing the number and percent of units that are occupied by Negroes, broken down by region and State, and by extent of integration of project. URA likewise publishes reports on the racial characteristics of project areas and relocation of families in project areas.

Do the housing agencies make use of the information collected by the Bureau of the Census in its determination of future housing needs?

The housing agencies do make use of the information collected by the Bureau of the Census in its determination of future housing needs. The Census is in fact the principal source of information in this area.

How do you determine what America's future housing needs will be? Do you use statistics pertaining to income, urban needs, rural needs, specific needs or particular sections of the country, special needs of migratory nonwhite groups, etc?

Estimates of future housing needs have so far been made only for the country as a whole, and not for any particular sections or particular groups. However, the needs of nonwhites have been taken into consideration when estimating the entire need.

The method of determining future housing needs is as follows:

(a) From (Census) projections of future population and households estimates are prepared of the total number of housing units that will be needed at stated points of time in the future.

(b) Estimates are then prepared on the losses to the housing supply through (1) demolition, (2) disaster, (3) abandonment, (4) conversion to nondwelling use, and (5) merger of units.

(c) Next, the number of units that will become dilapidated through age and inadequate maintenance are estimated.

(d) Consideration is given to the percentage of vacancies that will be necessary to allow for mobility, i.e., to permit movement of the population and to afford some choice of the character and location of an abode. After the total need has been determined the need for new construction may be obtained by estimating the number of units that will result from converting nonresidential to residential space and from dividing up dwelling units into smaller ones, and the number of substandard units that will be rehabilitated and supplied with necessary utilities. The total of units provided through these methods, subtracted from the total requirements, gives an approximation of the number of newly built units needed.

With income data, especially time series, it is possible to refine these estimates somewhat since the higher the projected income the faster the lowest quality houses will tend to disappear from the market.

Up to now no separate estimates have been prepared for families in rural and urban areas, although shifts to urban centers have been taken into consideration.

Since the responsibility of the HHFA is limited by law to the nonfarm sector, all estimates of housing needs are limited to nonfarm. This is of course comprised of two segments, the urban and the rural nonfarm.

Part II. SUBMITTED BY THE PUBLIC HOUSING
ADMINISTRATION

EXHIBIT A

The Organization of a Local Housing Authority

The low-rent public housing program, originally authorized by the United States Housing Act of 1937 (Public Law 412, 75th Cong.), provides financial assistance to local housing authorities organized under State enabling legislation. Federal aid to the authorities takes two forms: (1) Loans to help plan and construct housing for families and elderly persons (65 years of age or over) in the lowest income group who cannot afford to pay enough to cause private enterprise to build an adequate supply of decent, safe, and sanitary dwellings for their use, and (2) annual contributions to permit operation at rents within the means of the tenants.

The projects are initiated, planned, developed, owned, and operated by the local housing authorities, with the support and approval of the local governing bodies.

The State governments of 44 States have adopted the necessary enabling legislation permitting their communities to establish local housing authorities with power to develop and operate low-rent public housing in accordance with the requirements of the Federal law. The District of Columbia, Alaska, Hawaii, Puerto Rico, and the Virgin Islands also have such enabling legislation. (The four States that have not acted are Iowa, Utah, Wyoming, and Oklahoma.)

In establishing housing authorities, the State laws generally provide for adoption of a resolution or ordinance by a city council, giving the mayor power to set up the authority and appoint its commissioners. In the case of county housing authorities, the appointive powers are vested in the county legislative body.

Local housing-authority commissioners, usually numbering five appointed for staggered terms, are prominent civic leaders of the community. They serve without compensation, acting as a board of directors, normally with a paid staff performing administrative duties.

Civic associations, service clubs, minority groups, labor unions, church groups, women's groups, veterans' organizations, business groups, and public officials, concerned with eliminating slums and improving housing conditions in their communities, often encourage the formation of local housing authorities.

After local housing authorities are organized, they can apply for Federal assistance in developing and operating low-rent housing. Their applications must be approved by their respective governing bodies.

Further information on the procedure and a model transcript for the organization of local housing authorities in the various States may be obtained from the regional offices of the Public Housing Administration.

EXHIBIT B

Current Work of Public Housing Administration

FOREWORD

This booklet contains a brief description of the housing programs administered by the Public Housing Administration. It does not attempt to answer every question about them or give details of the enabling legislation.

Further information on any particular aspect of the programs may be obtained from the Public Housing Administration, Longfellow Building, Washington 25, D.C., or from the nearest regional office listed on the last page.

CHARLES E. SLUSSER,

Commissioner, Public Housing Administration.

Current Work of the Public Housing Administration

In 1947 the Public Housing Administration was made a constituent agency of the Housing and Home Finance Agency by the President's Reorganization Plan No. 3. It was the successor agency to the United States Housing Authority, created by the Housing Act of 1937 (Public Law 412). The agency name was changed to the Federal Public Housing Authority in 1942, and remained that until 1947 when it became PHA.

PHA administers two major programs: Low-rent public housing, which is a direct statutory responsibility of the Public Housing Commissioner, and liquidating emergency housing (including veterans' temporary reuse and defense housing) which was delegated to the Commissioner by the Administrator, Housing and Home Finance Agency. The last program will, except for the servicing of the resulting financial portfolio, end June 30, 1958.

THE PURPOSE OF LOW-RENT HOUSING

The U.S. Housing Act was passed in 1937 to provide Federal aid to communities for "families * * * in the lowest income group * * who cannot afford to pay enough to cause private enterprise *** to build an adequate supply of decent, safe, and sanitary dwellings for their use."

LOW-RENT HOUSING-A LOCAL PROGRAM

Need for public housing is determined locally and must be justified by the local housing authority. After the need has been demonstrated, the housing authority may apply to PHA for Federal assistance.

Official approval by the local governing body, city council, or similar agency is a prerequisite for Federal aid, and is required when the authority applies to PHA for a preliminary planning loan and when it ratifies the cooperation agreement with the housing authority. This agreement provides for tax exemption for the projects, payment in lieu of taxes by the housing authority, and elimination of an equivalent number of substandard housing units in the locality. The authority acts throughout as a nonprofit public agency. It owns and operates the projects, sets rents, selects eligible families, and takes care of repairs.

Private enterprise also has a considerable part to play in low-rent public housing. Land for projects is acquired by the housing authority from private owners at fair market prices.

Private architects and engineers design, draw the plans, and write the specifications for the housing. All construction is by private contractors on the basis of competitive bids, under the supervision of the housing authority. The project is financed almost entirely by private borrowings from bankers and investors.

As of March 31, 1958, there were 431,000 family accommodations under management in the low-rent program; 16,000 more under construction, and 94,000 in various preconstruction stages.

LOCAL HOUSING AUTHORITIES

Local housing authorities are agencies created under State enabling legislation. They are governed by commissioners (usually five) who are appointed by the mayor or local governing body and serve without pay. Forty-four States have laws permitting the development and operation of federally aided low-rent housing by local housing authorities. Only Iowa, Utah, Wyoming, and Oklahoma have not yet enacted public housing laws.

PHA is authorized by the Housing Act of 1956 to enter into new loan and annual contributions contracts after July 31, 1956, for not more than 35,000 additional low-rent public housing units each year for the next 2 years. Each 35,000-unit increment will be available for contracting for 2 years after it first becomes operative.

Before a new contract for annual contributions for any low-rent public housing units may be entered into, the locality must have approved by the Housing and Home Finance Administrator a workable program for the prevention and elimination of slums. Provisions specifically authorize PHA to assist the construction of new or remodeling of existing low-rent public housing in order to provide accommodations suitable for elderly families.

HOW THE FEDERAL GOVERNMENT HELPS

Federal financial aid to housing authorities takes two forms: (1) Loans to help finance development and construction of public housing, and (2) annual contributions to permit operation at rents within the means of low-income families.

When a project is substantially completed, the local housing authority sells its long-term bonds to private investors. The proceeds from the sale are then used by the authority to repay any loans from the Federal Government, plus all accrued interest. Money obtained in this way by the authority is protected by PHA's agreement to pay annual contributions.

The amount of the maximum annual contribution is limited to a percentage of the project's development cost. Local housing-authority bonds mature so that the debt service (amortization plus interest) will be approximately the same amount each year. The fixed contribution is further reduced each year by the amount of funds which the authority has available from income after meeting operating expenses, exclusive of debt service.

PHA furnishes technical advice to housing authorities and reviews local procedures for conformity with the law.

CONDITIONS FOR OCCUPANCY IN LOW-RENT HOUSING

Low-rent housing is built and operated by local housing authorities only for low-income families. These are defined by the Housing Act as families who are in the lowest income group and who cannot pay enough to cause private enterprise in their locality or metropolitan area to build an adequate supply of decent, safe, and sanitary housing for their use. The term "families" means families consisting of two or more persons, a single person 65 years of age or over, or the remaining member of a tenant family. The term "elderly families" means families the head of which (or his spouse) is 65 years of age or over.

To assure occupancy of low-rent housing in acordance with these stipulations the housing authority

(1) Must demonstrate that a gap of at least 20 percent has been left between the top rent for admission and the lowest rents at which private enterprise is providing a substantial supply of standard housing, either new or old.

(2) Must set maximum income limits, both for admission and continued occupancy. Maximum income limits for continued occupancy are generally set about 25 percent above the admission limits to allow for an increase in family income. Both limits are subject to PHA approval, and are determined after a careful study of local needs.

(3) Must make a written report to PHA showing, among other things, that incomes of families admitted and continuing in occupancy, less authorized exemptions, are within the prescribed income limits. (The exemptions authorized by Federal law to be made from net family income in determining eligibility for

admission are (1) $100 for each minor member of the family other than the family head and spouse; (2) $100 for each adult dependent member of the family having no income; (3) not to exceed $600 of the income of each member of the family other than the principal income recipient; and (4) amounts paid by the U.S. Government for disability and death occurring in connection with military service. In determining eligibility for continued occupancy there may be ex empted, in addition to the admission exemptions, all or any part of the income of minors rather than the limited amounts authorized at admission. It must also reexamine periodically the status of all tenant families to determine eligibility for continued occupancy. Those whose incomes rise above the limit are required to move.

Eligibility for admission is further limited to families who are in substandard housing, who are actually without housing, or about to be without housing through no fault of their own, or who are to be displaced by one of a variety of public actions, such as a low-rent-housing project, an urban renewal project, enforcement of sanitary codes, etc. The Housing Act provides for waiver of this requirement, however, for families of veterans and servicemen and for elderly families. It also provides for preferences in admission to these and to displaced families.

There are other legislative and administrative provisions to insure that lowrent public housing will serve only those low-income families who cannot find decent private housing within their means.

INCOME AND RENT OF FAMILIES IN LOW-RENT HOUSING

Families admitted in 1957 averaged a weekly income of almost $41.04. The average income of all families in low-rent housing was $43.17 per week in 1957. Rents are established by the housing authority at rates which are no higher than low-income families can afford to pay, but sufficient to cover project operating expenses. The rent charged a given family, therefore, is based on income and not on the size of the dwelling required. Each family must pay not less than 20 percent of its net income, less authorized exemptions, for gross rent (which includes the cost or value of utilities). The exemptions authorized by Federal law to be made from net family income in establishing rent are: (1) $100 for each minor member of the family other than the family head and spouse; (2) $100 for each adult dependent member of the family having no income; and (3) not to exceed $600 of the income of each member of the family other than the principal income recipient. Few State laws, however, presently permit exemptions for rent of other than $100 for each minor member of the family.

Gross rents for families admitted in the first 9 months of 1957, including charges for heat, light, cooking fuel, and other utilities, averaged $36 monthly.

Low-RENT MANAGEMENT

The average

Public housing is planned primarily for families with children. number of rooms per unit in projects placed under construction by December 31, 1957, was 4.85 rooms. This compares with only 3.3 rooms per unit for all renteroccupied units in nonfarm areas in the United States, according to the 1950

census.

Low-rent projects are operated by full- or part-time staffs employed by the local housing authority. Every effort is made to manage projects economically. They are planned and equipment selected with this in mind. The cost of repairs, maintenance, and replacement is reduced by encouraging tenant cooperation in caring for the grounds, interior painting, and making minor repairs.