Manufacturing employee who elected to be classified as a design professional.

Consultative Council Fee/Dues Schedule

Question: How are fees/dues set for members? In view of the current situation in the industry, how can you project an increase from $554,000 to $703,000 from FY 81 to FY 82?

Answer: The fees/dues schedule is set by a committee of the Council with the approval of the Council's National Executive Committee and the Board of Directors.

The figures cited ($554,000 in FY 81 and $703,000 in FY 82) represent fee income and general support the Institute has projected from all sources for self-initiated activities. The sources of these funds are explained in a previous answer to a question by Senator Garn.

We are projecting a 25% increase in Consultative Council fees/ dues and other Council income from such sources as annual meeting and conference-type fees. We are hopeful of adding at least one additional general support grant from a Federal agency and expensing this in the areas of Planning and Development and Operations. We anticipate a modest increase in income from publication sales. And, because our mission work supported by appropriated funds is beginning to bear fruit, we are hopeful of obtaining grants and contracts that directly support work that can be clearly delineated as a result of this mission work. Quite frankly, the continuing recession in the housing industry and cut backs in Federal agency programs may result in a failure to realize what, in September of last year when these projections were made, appeared to be attainable. We can only say that we will do our utmost to achieve these targets.

NIBS ENDOWMENTS

Question: You say endowments are beginning to flow

to the Institute. Could you elaborate?

Answer: We have received a number of quite small donations from Council participants and two separate 3-year endowment commitments from industrial organizations--namely, the Dow Chemical Company and United States Gypsum Company. We intend to begin a more organized effort to attract similar commitments from industrial organizations and foundations. We feel we have a sufficient trackrecord of progress and projects that there is a meaningful story to tell.

Achieving NIBS Self-Sustaining Status

Question: The Institute is scheduled to become selfsustaining at the end of FY 82. Do you believe the Institute can achieve this?

Answer: We have responded to the thrust of this question in our Budget Justification and our testimony here this morning. The answer is yes; however, as we pointed out, the failure to get more than a small percentage of the authorized funding from the Congress has

skewed our plans and program considerably. Further, the combination of the current economic climate and the failure to realize the general support grants from the agencies as the Congress had intended, certainly will have its effect. Hopefully, the Congress can help us in the ways we have requested here today, so that by the time the Institute is on its own, it will be in a much more sound position programmatically as well as financially.

Institute Salaries

Question: What salaries are paid to the Institute's President and Vice Presidents?

Are any other employees earning more than $50,000 annually?

Answer: The President receives a salary of $65,000, which, as you know, was reduced to that level in 1979. Currently, there is only one vice president of the Institute (there were three in 1978), the salary being $55,000. There is only one staff member at the $50,000 level.

place?

Consumer Participation

Question: Do you have a consumer division or unit in

Answer: No. Last year the National Executive Committee of the Consultative Council, with the advice of its consumer members, decided that it would be preferable to integrate consumer representatives into all levels of the Council's activities, and this has been done. The Council is, however, continuing to work with its consumer members to increase consumer membership on the Council and as our membership roster will show, this effort has been quite successful. Activities Being Performed for Federal Agencies

Question: Would you provide for the record a list of activities being performed for departments and agencies of the Federal Government.

If you were not performing these activities, would the departments and agencies be likely to do them in-house, contract them out, not do them at all, or what?

Answer: Following is a list of current activities with Federal departments:

Department of Housing and Urban Development (HUD)

1. Mobile Home Construction and Safety Standards

2. Model Rehabilitation Guidelines

Department of Energy (DOE)

1.

Building Energy Performance Standards (BEPS)

In addition, as noted in our answer to a question by Senator Garn, we anticipate receiving two follow-on contracts from FEMA for work of the Building Seismic Safety Council. Also, we expect another contract from HUD to support a joint effort to hold a housing technology conference.

In the case of BEPS and the rehab guidelines, NIBS was cited in the legislation--i.e., requiring the agency to work with the Institute. In these two cases, the instrument used was a cooperative agreement. The mobile home standards project was done under a contract.

...

Where NIBS is cited in the legislation, a unique relationship is established. To comply with a specific piece of legislation an agency may be required to deal with the Institute in a specific way and on a specific piece of work; however, experience to date indicates that specificity is apt to be the exception rather than the rule. For example, Public Law 95-557, Sec. 511 (a) (1) states model rehabilitation guidelines..." '...shall be developed in consultation with the National Institute of Building Sciences..." Nevertheless, HUD chose to ask the Institute to not only do the background work but to prepare the guidelines; and, using its Consultative Council and a project Committee set up by the Council, the Institute was able to get broad-based input to, and support for, the guidelines developed.

The Institute does not want to undertake work that can be done as well or better by others and it has established a policy that it will not respond to RFPs. Therefore, the work we do hopefully is unique.

Selection of Consultative Council Steering Committees

Question: You referred to the use of volunteers for Council divisions and to the selection of steering committees from those volunteers. What criteria are used in selecting volunteers for service on a steering committee?

Answer: In general terms, participation in the divisions and their project committees are open to all members of the Council. A steering Committee of a project committee is created only when a 25 or more members volunteer, and it is desirable and economical to have a more manageable group to work with staff and the full committee. In some cases of intense interest, the project committee or task force has reached well over a hundred members.

These steering committees are characterized by balance and expertise--balance in that the membership is representative of the interests involved and expert in terms of the subject matter. Where either cannot be obtained from those who volunteer, individuals are recruited from within or outside the membership to ensure that the group is balanced and qualified. Indeed, these same criteria are applied to the project committee and to all deliberative bodies within the Council.

The several divisions within the Council have developed organizational rules and procedures which have been approved for implementation by the National Executive Committee of the Council and the Board of Directors. The interests that are balanced are basically those represented by the membership classifications shown in the membership roster we have provided for the record.

Building Sciences Circulation

Suestion:

What is the circulation of Buildin

kara iw many copies and to whom?

Is there a charge?

ALover: The normal circulation currently is approximately 2000 cordes monthly. Informational copies are sent to members of Congress, Federal departments and agencies, and the press. Each member of the Consultative Council receives a copy as a membership service-i.e., it is paid for in this membership fee. Others subscribe at the rate of 13 per year.

In addition, periodically additional copies of selected issues are rm for use in information packets and with membership promotional nailings.

FEDERAL HOME LOAN BANK BOARD

STATEMENT OF JOHN H. DALTON, CHAIRMAN

ACCOMPANIED BY:

MARSHALL A. KAPLAN, ACTING DIRECTOR, OFFICE OF POLICY AND ECONOMIC RESEARCH

IRA L. TANNENBAUM, ACTING GENERAL COUNSEL

DAVID A. VAUGHAN, JR., BUDGET OFFICER

ANDREW A. DIPRETE, BOARD MEMBER

RITA I. FAIR, EXECUTIVE ASSISTANT TO THE CHAIRMAN

L DAVID TAYLOR, DIRECTOR, OFFICE OF EXAMINATIONS AND SUPERVISION

BUDGET REQUEST

Senator GARN. Next we would like to call up the representatives from the Federal Home Loan Bank Board. The Federal Home Loan Bank Board was established by the Federal Home Loan Bank Act in 1932 to provide a permanent credit reserve for thrift and home-financing institutions through the creation of regional Federal home loan banks. The Homeowners' Loan Act, approved in 1933, gave authority to the Board to charter and supervise local mutual institutions to be known as Federal savings and loan associations. In 1934, the Federal Savings and Loan Insurance Corporation was created and placed under the direction and management of the Federal Home Loan Bank Board.

The Federal Home Loan Mortgage Corporation was established by the Emergency Home Financing Act of 1970. The function of the Corporation is to provide a secondary market for residential mortgages. At the end of fiscal year 1980, member savings and loan associations held about $403 billion, or 44 percent, of all home mortgages and member institutions serve around 105 million people through their 4,250 member institutions.

The Board receives no appropriated funds from the U.S. Treasury, rather the Congress provides a limitation on the administrative and nonadministrative expenses of the Board and the administrative expenses of the FSLIC. This year, the Board is requesting $22,320,000 and $37,540,000 for the administrative and nonadministrative expenses.

PREPARED STATEMENT

FSLIC is requesting $1,030,000. I see that you have a 26-page prepared statement. If you would like to present a summary of your statement at this time, we would be happy to place the entire statement in the record.

[The statement follows:]

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