NOTE. The Surveys and Investigations supervisory staff is supplemented by selected personnel borrowed on a reimbursable basis for varying lengths of time from various agencies to staff up specific studies and investigations. The current average annual fulltime personnel equivalent is approximately 65. GERARD J. CHOUINARD PAUL V. FARMER SANDRA A. GILBERT ROBIN A. HARROLD PATRICIA A. KEMP ADMINISTRATIVE SUPPORT MARCIA L. MATTS GENEVIEVE A. MEALY TONI PERLA AUSTIN G. SMITH BETTILOU TAYLOR RANDOLPH THOMAS SUSAN A. WEAVER Richard N. Malow and Paul E. Thomson, Staff Assistants TUESDAY, 22 FEBRUARY 1977. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WITNESSES PATRICIA ROBERTS HARRIS, SECRETARY JOSEPH BURSTEIN, ACTING DEPUTY ASSISTANT SECRETARY FOR HOUSING-DEPUTY FEDERAL HOUSING COMMISSIONER JERRY J. FITTS, ACTING DEPUTY ASSISTANT SECRETARY FOR ECONOMIC AFFAIRS S. LEIGH CURRY, JR., ACTING DEPUTY GENERAL COUNSEL THOMAS P. DUNNE, FEDERAL DISASTER ASSISTANCE ADMINISTRATOR VINCENT J. HEARING, ACTING ASSISTANT SECRETARY FOR ADMINISTRATION ALBERT J. KLIMAN, DEPARTMENT BUDGET OFFICER SYBIL M. PHILLIPS, DIRECTOR, DIVISION OF COMMUNITY CONSERVATION RESEARCH, OFFICE OF POLICY DEVELOPMENT AND RESEARCH Mr. BOLAND. The committee will come to order. We are very pleased to have with us this morning the Secretary of the Department of Housing and Urban Development. WELCOME TO MRS. HARRIS I am sure this will be the first of a number of hearings that you will attend before this committee. I think you will find it very cooperative and very friendly. Let's see, some of us have sat here through, let's see, how many Secretaries, Weaver, Wood, Romney, Lynn, Carla Hills and now Patricia. (1) Anybody else in there? Mr. KLIMAN. You have listed them all. Mr. BOLAND. We are delighted to have you, Madam Secretary. Let me say that, when I was informed-where is that place in Georgia they make telephone calls from-the night before the President-elect had selected you, that you were to be the Secretary, I confirmed you that evening. I didn't have to wait for another hearing. In any event we are delighted to have you and I am sure you will bring considerable knowledge and a great deal of persuasiveness, to a very, very difficult task. The problems of housing in America and the problems of our core cities and central cities, almost defy solution. One puts his hand to it and we make a real effort to do it. I think that in the months to come perhaps we will have a lot of new ideas, coming up from the other end of Pennsylvania Avenue. You, of course will be the carrier of them. I am sure you will find some friendly hands up here on the Hill. You are requesting a number of supplemental appropriations. The major supplemental you are requesting is for subsidized housing, for $508 million of additional annual contract authority and $15,530,400,000 of additional budget authority. I know you have a statement and we would be very pleased to hear you. GENERAL STATEMENT Secretary HARRIS. Thank you, Mr. Chairman and members of the committee. It is a pleasure to be here today in my first appearance before this committes. This is not only an opportunity for me to present you with certain funding requests, but it is also, I hope, the beginning of a long relationship of mutual cooperation and understanding. I hope that during my tenure as Secretary of the Department of Housing and Urban Development the congressional and executive branches will work together to produce the necessary legislative and administrative initiatives that will make the Housing Assistance and Community development programs major factors in the improvement of our Nation's public welfare. The supplemental requests that I am presenting to you today represent the immediate steps necessary to begin this process. I am here today, as you have noted, to request seven supplemental appropriations. While some of these requests were contained in the budget which the prior administration submitted, others have been developed by the new administration. As we reviewed the budget proposals already submitted, it became obvious that our ability to make changes, at that time, was limited. However, there are a number of important modifications which we are compelled to recommend and of which we ask your approval. THE SUPPLEMENTAL REQUESTS The seven supplementals I am requesting are as follows: First. Increased contract authority of $508 million to allow the Department to raise the unit reservations for section 8 and public housing by 164,200 units to the 400,000-unit level which has been our goal in recent years. This request involves additional budget authority of $15.5 billion; Second. An appropriation of $439.5 million to meet requirements for housing subsidy payments not provided for in the 1977 Appropriation Act (the original supplemental appropriation request was $240 million); Third. An additional $20 million appropriation for public housing operating subsidies required because of higher fuel consumption during the recent winter/energy crisis; Fourth. An appropriation of $1.8 billion for net realized losses as of September 30, 1976 for the FHA General and Special Risk Insurance Funds; Fifth. An appropriation of $15 million to reimburse the FHA Fund for the costs of the Urban Homesteading Program; Sixth. An appropriation of $200 million for the President's Disaster Relief Fund; and, Seventh. Appropriation and transfer authority of $15.4 million for increased pay costs. EXCLUSION OF BICENTENNIAL LAND HERITAGE PROGRAM You will note that this list does not include the $200 million requested by the prior administration for the Bicentennial Land Heritage program. While the Department supports continued development of parks, we believe that highest priority must be directed toward programs that will produce the decent housing that Americans so desperately need. INITIATIVES OF THE NEW ADMINISTRATION The supplemental requests for housing and for operating subsidies are, of course, the initiatives of this administration. We also have found it necessary to increase the prior administration's request for the "Housing Payments" account and the Disaster Relief Fund based on more current information and events that have occurred in recent weeks. We have left unchanged, however, the prior requests for urban homesteading and restoration of losses in the FHA fund. Much of what I am requesting requires the enactment of authorizing legislation. Specifically, authorizing legislation is necessary for our housing request, for operating subsidies, for urban homesteading, and for a substantial part of losses in the FHA general insurance fund. Separate bills for these 1977 matters have been introduced and I hope for quick action on these bills. |