E. Lee Feller, Coldwater, Mich.; accompanied by Boyd Wiggins, Director of Civil Defense, Branch County, Mich.. Boyd C. Wiggins.. Buford Ellington, Director, Office of Emergency Planning; accompanied Bernard H. Polk, Assistant Administrator, Farmers Home Administration, William O. Shofner, Deputy Director of Policy and Program Appraisal Hon. Gordon Allott, a U.S. Senator from the State of Colorado. JUNE 22, 1965 Ross D. Davis, Executive Administrator, Small Business Administration; accompanied by Clarence Cowles, Director, Office of Disaster Loans; John Kivlan, counsel; and Logan Hendricks, Deputy Administrator for Financial Assistance.. Hon. E. L. Bartlett, a U.S. Senator from the State of Alaska.. Rex M. Whitton, Administrator, Federal Bureau of Public Roads; ac- Victor Fischer, Assistant Administrator, Metropolitan Development, Woody L. Caton, sheriff, Elkhart, Ind. 93 100 108 113 121 Robert O'Neal, superintendent of police, State of Indiana.. 134 139 Hon. Keith McCormick, State senator, State of Indiana...... 147 Hon. Walter F. Mondale, a U.S. Senator from the State of Minnesota.. 166 167 174 175 Hon. Birch Bayh, a U.S. Senator from the State of Indiana_. Hon. John Brademas, a Representative in Congress from the State of Hon. Philip Hart, a U.S. Senator from the State of Michigan_ Hon. Thomas H. Kuchel, a U.S. Senator from the State of California. Hon. Jack Miller, a U.S. Senator from the State of Iowa_ _ _ Hon. Gaylord Nelson, a U.S. Senator from the State of Wisconsin. Hon. Edward Roush, a Representative in Congress from the State of Hon. Harrison A. Williams, a U.S. Senator from the State of New Jersey. 178 DISASTER RELIEF ACT OF 1965 MONDAY, JUNE 21, 1965 U.S. SENATE, SUBCOMMITTEE ON FLOOD CONTROL, COMMITTEE ON PUBLIC WORKS, Washington, D.C. The subcommittee met at 9:05 a.m., pursuant to call, in room 4200, New Senate Office Building, Senator Birch Bayh (chairman of the subcommittee) presiding, Present: Senators Bayh, Moss, and Harris. Also present: Senator Allott. Senator BAYH. Let us begin our hearing this morning, please. I will place in the record a copy of S. 1861 and the departmental reports thereon. (The material referred to follows:) [S. 1861, 89th Cong., 1st sess.] A BILL To provide additional assistance for areas suffering a major disaster Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Disaster Relief Act of 1965". DEFINITIONS SEO. 2. As used in this Act, the term "major disaster" means a major disaster as determined by the President pursuant to the Act entitled "An Act to authorize Federal assistance to States and local governments in major disasters, and for other purposes", approved September 30, 1950, as amended (42 U.S.C. 18551855g). FEDERAL LOAN ADJUSTMENTS SEC. 3. (a) The Secretary of Agriculture is authorized to refinance a borrower's indebtedness under programs administered by the Farmers Home Administration where he finds such refinancing necessary because of property losses sustained by such borrower as a result of a major disaster. Any loan so refinanced may provide for the repair or construction of structures and for the purchase of building sites when the original sites cannot be utilized as a result of such disaster. The interest rate on any loan refinanced under this subsection may be reduced to a rate not less than 3 per centum per annum, and the term thereof may be extended for such period as will provide a maturity of not to exceed forty years: Provided, That the Secretary may authorize a suspension in the payment of principal and interest charges on, and an additional extension in the maturity of, any such loan for a period not to exceed five years if he determines that such action is necessary to avoid severe financial hardship. (b) The Secretary of Agriculture is authorized to refinance a borrower's indebtedness under programs administered by the Rural Electrification Administration, where he finds such refinancing necessary because of loss, destruction, or damage of property resulting from a major disaster. The term of such loan may be extended for such period as will provide a maturity of not to exceed forty years: Provided, That the Secretary may authorize a suspension in the payment of principal and interest charges on, and an additional extension in the maturity of, any such loan for a period not to exceed five years if he determines that such action is necessary to avoid severe financial hardship. (c) The Housing and Home Finance Administrator is authorized to refinance any note or other obligation which is held by him in connection with any loan made by the Housing and Home Finance Agency, or which is included within the revolving fund for liquidating programs established by the Independent Offices Appropriation Act of 1955, where he finds such refinancing necessary because of the loss, destruction, or damage to property or facilities securing such obligations as a result of a major disaster. The interest rate on any note or other obligation refinanced under this subsection may be reduced to a rate not less than 3 per centum per annum, and the term thereof may be extended for such period as will provide a maturity of not to exceed forty years: Provided, That the Administrator may authorize a suspension in the payment of principal and interest charges on, and an additional extension in the maturity of, any such loan for a period not to exceed five years if he determines that such action is necessary to avoid severe financial hardship. (d) The Administrator of Veterans' Affairs is authorized to refinance any loan made by the Veterans' Administration where he finds such refinancing necessary because of the loss, destruction, or damage to property securing such loan as the result of a major disaster. The interest rate on any loan refinanced under this subsection may be reduced to a rate not less than 3 per centum per annum, and the term thereof may be extended for such period as will provide a maturity of not to exceed forty years: Provided, That the Administrator may authorize a suspension in the payment of principal and interest charges on. and an additional extension in the maturity of, any such loan for a period not to exceed five years if he determines that such action is necessary to avoid severe financial hardship. (e) Loans made pursuant to paragraph (1) of section 7(b) of the Small Business Act, as amended (15 U.S.C. 636(b)), for the purpose of replacing, reconstructing, or repairing dwellings damaged or destroyed as a result of a major disaster may have a maturity of not to exceed forty years: Provided, That the Administrator of the Small Business Administration may authorize a suspension in the payment of principal and interest charges on, and an extension in the maturity of, any such loan for a period not to exceed five years, if he determines that such action is necessary to avoid severe financial hardship. The provisions of section 7(c) of such Act shall not be applicable to any such loans 'which have a maturity in excess of thirty years. (f) The Administrator of the Small Business Administration may authorize for a period not to exceed five years a suspension in the payment of principal and interest charges on, and an extension in the maturity of, any loan made to small business concerns pursuant to section 636 (a) of the Small Business Act. as amended (15 U.S.C. 636 (a)), if he determines that such action is necessary to avoid severe financial hardship resulting from loss or damage incurred by a major disaster. (g) Such sums as may be necessary to carry out the provisions of this section are hereby authorized to be appropriated. REFINANCING OF OUTSTANDING MORTGAGE OBLIGATIONS SEC. 4. (a) For the purpose of enabling any State which has suffered a major disaster to refinance outstanding home mortgage obligations or other real prop erty liens which are not insured or guaranteed by any Federal agency and which are secured by one- to four-family homes which have been severely damaged or destroyed by such disaster, the President is authorized, upon application, to make matching grants to such State on a 75 per centum Federal 25 per centum State participating basis, any funds provided by such State to pay the cost of refinancing such mortgage obligations of real property liens. (b) Any application for a grant under this section shall (1) be in accordance with a plan submitted by the State, to be approved by the President, for the implementation of the purpose of this section; (2) designate the State agency for carrying out the plan: (3) provide assurances that any loan made for the purpose of refinancing any mortgage obligation, or other real estate lien, shall have a maturity of not to exceed forty years and bear interest at a rate not to exceed 3 per centum per annum: Provided, That the State agency may authorize a suspension in the payment of principal and interest charges on, and on extension of the maturity of, any such loan for a period not to exceed five years, if it determines that such action is necessary to avoid severe financial hardship; (4) specify that no loan for refinancing the outstanding debt secured by any single property shall exceed $30,000; (5) provide assurances that equitable treatment will be accorded to all eligible property owners; and (6) set forth such further information as the President may by regulation require. (c) The President shall prescribe such rules and regulations as he deems necessary for the effective administration of this section, and to prevent the waste or dissipation of Federal funds. (d) Each State receiving assistance under this section shall, through its designated State agency, make such reports as the President may require, and each such agency shall, upon request of the President, make available its books and records for audit and examination. (e) The President may exercise the powers conferred upon him by this section either directly or through such Federal agency as he may designate. (f) Such sums as may be necessary to carry out the purposes of this section are hereby authorized to be appropriated. SHELTER FOR DISASTER VICTIMS SEC. 5. (a) The President is authorized to provide dwelling accommodations for any individual or family whenever he determines (1) that such individual or family occupied a house (as an owner or tenant) which was destroyed, or damaged to such an extent that it is uninhabitable, as the result of a major disaster; and (2) that such action is necessary to avoid severe hardship on the part of such individual family; and (3) that such owner or tenant cannot otherwise provide suitable dwelling accommodations for himself and/or his family. (b) Such dwelling accommodations, including mobile homes, as may be necessary to meet the need, shall be provided through acquistion, acquisition and rehabilitation, or lease. Dwelling accommodations in such housing shall be made available to any such individual or family for such period as may be necessary to enable the individual or family to find other decent, safe, and sanitary housing which is within his or its ability to finance. Rentals shall be established for such accommodations, under such rules and regulations as the President may prescribe and shall take into consideration the financial ability of the occupant. In cases or financial hardship, rentals may be compromised or adjusted for a period not to exceed twelve months, but in no case shall any such individual or family be required to incur a monthly housing expense (including any fixed expense related to the amortization of debt owing on a house destroyed or damaged in a disaster) which is in excess of 25 per centum of the individual's or family's monthly income. (c) In the performance of, and with respect to, the powers and duties conferred upon him by this section, the President may (1) prescribe such rules and regulations as he deems necessary to carry out the purposes of this section; (2) exercise such powers and duties either directly or through such Federal agency or agencies as he may designate; (3) sell or exchange at public or private sale, or lease, any real property acquired or constructed under this section; (4) obtain insurance against loss in connection with any such real property; (5) enter into agreements to pay annual sums in lieu of taxes to any State or local taxing authority with respect to any such real property; and (6) include in any contract or instrument made pursuant to this section, such conditions and provisions as he deems necessary to assure that the purposes of this section will be achieved. (d) Such sums as may be necessary to carry out the provisions of this section are hereby authorized to be appropriated. |