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sold all presently federally owned projects, we would be over a million dollars short of annual authorizations. And that is why I say that section 707, which would authorize an additional program of $22,000,000 in the first year, increasing at the rate of $22,000,000 a year for the next 3 years to a total of $88,000,000 at the end of the fourth year, is the meat of this whole discussion. It is calculated to provide 125.000 units a year.

The CHAIRMAN. Yes.

Mr. KLUTZNICK. And it is limited to providing not to exceed 500,000 units in the 4 years (excluding units provided through rehabilitation) without additional authorization from the Congress. The 125,000 units a year can be accelerated by action of the President if there is a need.

Under this additional authorization, the period over which the contribution may be paid would be limited to 45 years, as contrasted with the period of 60 years under the present authorization. As explained above, we believe this 25 percent reduction in the period of annual contributions will be made possible only through the financing. amendments which are designed to enlist local private capital at lower interest rates and with larger participation than has been possible under the present law.

Now I should like to indicate what would be provided under that program. Chart 28 discloses that under this additional authorization, 125,000 dwelling units a year would rehouse approximately 482,000 people. Those units would have an estimated development cost of $625,000,000. Their construction would provide 300,000 man-years of employment. The total 4-year program gives you those same figures multiplied by four. At the end of the 4 years the program would rehouse just short of 2,000,000 people; it would involve an estimated capital expenditure of two and a half billion dollars; and it would provide 1,200,000 man-years of employment.

(See chart 28 which follows Mr. Klutznick's statement.)

It may be of interest to the committee to have before it a statement of the applications for postwar low-rent housing which the localities have filed with FPHA. By an Executive order of the President, all agencies authorized by law to aid projects of localities were asked to prepare and keep up to date advance programs of works which, in addition to supplying needed facilities, would afford employment and provide useful outlets for materials and capital.

In keeping with this order and our responsibilities under the United States Housing Act, the FPHA made available to local public agencies forms on which any of them who so desired could set forth their plans for low-rent programs. I would like to have a copy of this form made a part of this record, to follow my testimony.

The CHAIRMAN. It will be.

(The form, "Application for Allotment of Funds for Postwar LowRent Public Housing," appears in the appendix.)

Mr. KLUTZNICK. We asked the communities to indicate on that. form what if anything they proposed to do with respect to low-rent housing in the first 3 years after the war. You will remember this bill proposes a 4-year program; the President's order covered merely 3 years. We also indicated in that form that they would have to determine their own public housing need, and for their guidance suggested: First, that no new public housing should be provided where it is possible to fill a need with decent existing housing.

80525-4615A

Second, that no public housing should be provided that will compete with private capital in its appropriate sphere.

Third, that determinations of public housing need in the locality should leave a reasonable gap between the top of the low-income market and the lowest possible floor of private capital, in order to leave the way free for private capital to move into the lowest possible markets.

It should be noted how closely the instructions in this application reflect the principles which are included in S. 1592.

Up to the present time there have been submitted to the Federal Public Housing Authority applications for assistance of urban lowrent housing projects from 336 localities out of the 448 being presently served by local housing authorities. The applications are summarized in a list which we should like to submit for the record at this point. (The matter referred to is as follows:)

3-year programs for urban low-rent housing submitted by local housing authorities (pursuant to Executive Order No. 9384 on shelf of postwar projects)

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3-year programs for urban low-rent housing submitted by local housing authorities (pursuant to Executive Order No. 9384 on shelf of postwar projects)-Continued

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3-year programs for urban low-rent housing submitted by local housing authorities (pursuant to Executive Order No. 9384 on shelf of postwar projects)-Continued

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S-year programs for urban low-rent housing submitted by local housing authorities (pursuant to Execurive Order No. 9384 on shelf of postwar projects)-Continued

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Mr. KLUTZNICK. The 3-year urban programs thus far submitted cover projects with 360,099 new dwelling units and a total estimated cost of $1,905,634,504.

The list of applications is not being submitted as an indication of the full size of the program which local authorities will request under S. 1592, but simply as a record of the applications now on our shelf. In this connection it should be noted that

(1) Applications were received only from local public agencies which were already in existence. This excluded cities which have not yet created housing authorities under existing State housing legislation.

(2) No applications were received from the eight States which do not yet have low-rent housing laws.

(3) A number of existing authorities, who have expressed an intention to undertake low-rent housing programs, have withheld filing their programs until congressional action is taken on a new authorization. Thus, applications have been submitted for only 336 localities out of the total of 448 localities which are served by active housing authorities.

(4) The applications on the shelf cover only projects for which the local authorities could execute contracts with FPHA within 3 years after allotment of funds to them. On the basis of the 4-year program contemplated by S. 1592, many authorities will wish to increase the size of programs requested. It is, of course, advantageous to enable communities to formulate plans for at least the 4-year period, thus permitting better planning and more stable and coordinated levels of construction.

While in almost all cases the applications filed by local authorities have been reviewed and endorsed by the city officials, there are some instances in which the local authorities have advised us that they do not plan to seek such endorsement until congressional action has been taken on a new authorization.

The list of applications here inserted spells out community by community, and State by State, the size of the program requested. I must observe this caution: Since no authorizations are available to

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