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the New York market. And if memory serves me correctly, the company was established in the Middle West. I call that to your attention, because there may be some lessons that can be learned from any existing activity.

I also call to your attention the activity of a group of life insurance companies in guaranteeing export credits under the aegis of the Export-Import Bank. And Harold Linder there is an extremely competent banker. That comes under our jurisdiction, too, generally, in the Banking and Currency Committee. And again, I would like you to check with them as to how they put that together and what happened as a result.

For myself, I have a feeling that S. 810 is better than 2130, whatever its number is. I do not think FNMA ought to get in this business. I think every time you try to make one of these agencies do something it was never set up to do you get in a lot of complications; and, in addition, it would hardly be private enterprise.

I think it is possible here to make a private enterprise activity under Federal supervision, and even with a Federal charter. And I think that is your best bet. And perhaps also it should be regionalized. This is an awful big business. That is what I was trying to bring out, and the chairman helped me in getting a breakdown as to how much was conventional and how much was Government guarantee. I think this is a real thing for you, and I would hope that you would bring us a bill, that you will do very adequate research, that you will pick the bill, not leaving it to us, and we may not agree with you, and if so, we have the power; but you are citizens and with a great interest. If you will bring us the bill which is the vehicle that you think is the best for the purpose, that you will consult others who have had experience in this field; and I hope you will accelerate your timetable and give it to us in January, instead of next spring. Mr. BUCHANAN. Thank you for that opportunity.

Mr. COOGAN. We are planning to do that. This whole policy is in a state of flux at the present time, and we are looking forward to these hearings as part of our education in the program.

Senator JAVITS. I would spend a little money on this if I were you fellows. I think it would be well worth it in getting the necessary legal advice to really do a job on this and give us the real sense of direction on the part of industry.

Mr. COOGAN. Thank you, sir.

Senator SPARKMAN. Is it fair to summarize your presentation in this way that you believe there is a need for developing a secondary market for conventional mortgages?

Mr. BUCHANAN. Yes, sir.

Senator SPARKMAN. And that it is helpful for us to explore the three measures that have been presented, as well as other suggestions that may come along, try to work out the best we can?

Mr. BUCHANAN. Yes, sir.

Senator SPARKMAN. And we may be assured of your continued assistance and support?

Mr. BUCHANAN. Yes.

Senator SPARK MAN. Thank you very much.

Mr. BUCHANAN. Thank you.

Mr. COOGAN. Thank you, Mr. Chairman.

(Mr. Buchanan subsequently submitted the following letter and statistics:)

Hon. JACOB K. JAVITS,
Senate Office Building,
Washington, D.C.

NATIONAL ASSOCIATION OF HOME BUILDERS,
Washington, D.C., October 11, 1963.

DEAR SENATOR JAVITS: On September 24, 1963, while testifying before the Subcommittee on Housing of the Senate Banking and Currency Committee on behalf of S. 810, S. 811 and S. 2130, you posed two questions to me regarding the middle-income housing program. I indicated I would respond to these questions after a more complete analysis of the facts and figures.

The first of the two inquiries was directed at the progress of providing middleincome housing under the special mortgage insurance provisions of section 221 of the Housing Act of 1961. Implicit also in the question was the comparison of production under this program with the total need for such housing.

First, let us define the term "middle income" for the purpose of the question asked. Dr. Robert Weaver, the Administrator of the Housing and Home Finance Agency, in his statement on the provisions of the housing bill of 1961 before the Committee on Banking and Currency, defined the moderate- or middle-income family to be one with an income of $4,000 to $6,000 per annum.

Dr. Weaver indicated that there were approximately 11 million families within this income range. He also stated the number of housing units that were substandard, dilapidated, deteriorating, and sound but lacking some or all plumbing facilities. These figures were the total estimate, not merely the number of units in which moderate- or middle-income families dwelled.

The "U.S. Census of Housing 1960 (Metropolitan Housing)," volume HC (2)— No. 1, "U.S. Summary," lists the number of housing units by income level by condition in the United States as of April 1, 1960. By the process of addition of dilapidated units and deteriorating units (those that lack plumbing facilities) both sales and rental, it can be seen that the total number of families living in substandard housing in the $4,000 to $6,000 income level was approximately 727,300 as of 1960. A copy of this report is attached.

These statistics represent probably the best, and very likely a fairly accurate standard of judgment by which we can measure the progress of the middleincome provisions of the National Housing Act of 1961.

According to the most recent available statistics from the Federal Housing Administration, from July 1, 1961, to July 31, 1963, 42,907 units were insured under section 221(d) (2); 9,068 units were insured under section 221(d) (3); and 1,131 units were insured under section 221 (d) (4). The total number of units insured under these programs in the 2-year period ending July 31, 1963, was 53,106 dwelling units. Also at that date FHA had commitments outstanding on an additional 25,688 units and applications were in process on 13,088 units. There is, of course, a timelag between the enactment of a new housing program and its translation into finished units of housing. Nevertheless it would appear that the production of housing for moderate-income families has responded promptly to the call of the Congress in providing or about to provide approximately 90,000 units of such housing within a relatively short period of time. Additional units of middle-income housing provided during this period which were financed either conventionally or under the auspices of State programs such as the New York Mitchell-Lama program swell the total production statistics well above the number of units provided by FHA mortgage insurance. No doubt the housing industry can and will do better in the future as these housing programs season with age. In an effort to publicize and promulgate these programs among our membership, we have prepared illustrative cases to aid builders and sponsors in preparing applications for projects under the sections 221 (d) (3) and 221(d) (4) programs. In addition, we have sponsored workshops and conferences designed specifically to explain the programs and assist builders in the implementation of middle-income housing programs. The most recent of these meetings was the eastern States rental housing conference held in New York City on October 1 and 2, 1963.

Your second inquiry asked our views of the program of the New York Housing Agency which is based on debentures issued by the agency to provide funds for consolidated groups of middle-income mortgages. Frankly we do not feel sufficiently acquainted with the program here in Washington to give you a prompt opinion. Therefore, we have referred this question to some of our leading members from the State of New York. As soon as we receive their views, we will forward a reply to you promptly.

Sincerely,

W. EVANS BUCHANAN, President.

METROPOLITAN HOUSING

TABLE A-4.-Condition and plumbing facilities for owner- and renter-occupied housing units, for the United States, 1960 [Based on sample; see text. Minus (-) after number indicates median below that number]

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[graphic][merged small][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][merged small][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][merged small][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed]

METROPOLITAN HOUSING

TABLE C-4.-Condition and plumbing facilities for owner- and renter-occupied housing units, for the United States, 1960-Continued [Based on sample; see text. Minus (-) after number indicates median below that number]

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