UNITED STATES OF AMERICA OCT 2 '40 PUBLIC BUILDINGS AND GROUNDS-No. 11 THURSDAY, AUGUST 29, 1940 HOUSE OF REPRESENTATIVES, COMMITTEE ON PUBLIC BUILDINGS AND GROUNDS, Washington, D. C. The committee this day met, Hon. Fritz Lanham (chairman) presiding. The CHAIRMAN. The committee will come to order. We are meeting this morning to give consideration to H. R. 10412. This measure was sent to the Speaker by the Advisory Commission of the Council on National Defense under date of August 24, and the letter written to the Speaker by Mr. C. F. Palmer, the Coordinator, encloses a proposed draft of the legislation to expediate the provision of housing in connection with national defense, and for other purposes. He also encloses a letter from the Director of the Bureau of the Budget approving the draft as in accordance with the President's program. And he states that it would be well if this legislation were introduced with all convenient speed. That letter, and the letter to Mr. Palmer from the Director of the Budget, together with a copy of the bill, will be inserted in the record at this point. (The letters and bill referred to follow :) THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE, Hon. WILLIAM B. BANKHEAD, Washington, D. C. MY DEAR MR. SPEAKER: Enclosed herewith is a draft of proposed legislation "to expedite the provision of housing in connection with national defense, and for other purposes." Enclosed also is a copy of a letter from the Director of the Bureau of the Budget, approving such draft as in accordance with the President's program. It is felt that it would be well if this legislation were introduced with all convenient speed. Very truly yours, Hon. C. F. PALMER, Coordinator, the Advisory Commission to the Council of National Defense, Washington, D. C. C. F. PALMER, Coordinator. MY DEAR MR. PALMER: I have your letter of August 23, 1940, transmitting the original and one copy of a draft of a proposed bill "to expedite the provision of housing in connection with national defense, and for other purposes." The original of the draft of bill is returned herewith, and you are advised that there would be no objection to its presentation for the consideration of the Congress. Very truly yours, HAROLD D. SMITH, Director. [H. R. 10412, 76th Cong., 3d sess.] A BILL To expedite the provision of housing in conneution with national defense, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, TITLE I SECTION 1. In order to provide housing for persons engaged in national-defense activities, and their families, in those areas or localities in which the President shall find that an acute shortage of housing exists or impends which would impede national-defense activities, the Federal Works Administrator (hereinafter referred to as the "Administrator"), acting through the Public Buildings Administration, is authorized: (a) To acquire (without regard to sections 355, as amended, 1136, as amended, and 3709 of the Revised Statutes) improved or unimproved lands or interests in lands by purchase, donation, exchange, lease (without regard to section 322 of the Act of June 30, 1932 (47 Stat. 412), as amended, the Act of March 3, 1877 (19 Stat. 370), or any time limit on the availability of funds for the payment of rent), or condemnation (including proceedings under the Acts of August 1, 1888 (25 Stat. 357), March 1, 1929 (45 Stat. 1415), and February 26, 1931 (46 Stat. 1421)). (b) By contract or otherwise (without regard to sections 355, as amended, 1136, as amended, and 3709 of the Revised Statutes, section 322 of the Act of June 30, 1932 (47 Stat. 412), or any Federal, State, or municipal laws, ordinances, rules, or regulations relating to plans and specifications or forms of contract, the approval thereof or the submission of estimates therefor) to make surveys and investigations, plan, design, construct, remodel, extend, repair, or demolish structures, buildings, improvements, and community facilities, on lands or interests in lands acquired under the provisions of subsection (a) hereof or on other lands of the United States which may be available (transfers of which for this purpose by the Federal agency having jurisdiction thereof are hereby authorized notwithstanding any other provisions of law), provide proper approaches thereto, utilities, and transportation facilities, and procure necessary materials, supplies, articles, equipment, machinery, and portable or demountable structures, interchangeable parts, or units: Provided, That the cost-plus-a-percentage-of-cost system of contracting shall not be used, but this proviso shall not be construed to prevent the use of the cost-plus-a-fixed-fee form of contract: Provided, That the average cost per family dwelling unit shall not exceed the sum of $3,500, exclusive of expenses for administration, land acquisition, public utilities, and community facilities. SEC. 2. As used in this Act (a) the term "persons engaged in national-defense activities" shall include (1) enlisted men in the naval or military services of the United States; (2) employees of the United States in the Navy and War Departments assigned to duty at naval or military reservations, posts, or bases; (3) workers engaged or to be engaged in industries connected with and essential to the national defense; (b) the term "Federal agency" means any executive department or office (including the President), independent establishment, commission, board, bureau, division, or office in the executive branch of the United States Government, or other agency of the United States, including corporations in which the United States owns all or a majority of the stock, directly or indirectly. SEC. 3. The sum of $150,000,000, to remain available until expended, is hereby authorized to be appropriated to carry out the purposes of this Act in accordance with the authority therein contained and for administrative expenses in connection therewith: Provided, however, That the Administrator is authorized to reimburse, from funds which may be appropriated pursuant to the authority of this Act, the sum of $3,300,000 to the emergency funds made available to the President under the Act of June 11, 1940, entitled "An Act making appropria tions for the Navy Department and the naval service for the fiscal year ending June 30, 1941, and for other purposes" (Public, Numbered 588), and the sum of $6,700,000 to the emergency funds made available to the President under the Military Appropriation Act, 1941, approved June 13, 1940 (Public, Numbered 611). SEC. 4. When the President shall have declared that the emergency declared by him on September 8, 1939, to exist, has ceased to exist (a) the authority contained in section 1 hereof shall terminate except with respect to contracts on projects previously entered into or undertaken and court proceedings then pending, and (b) property acquired or constructed under this Act shall be disposed of as promptly as may be advantageous under the circumstances and in the public interest. SEC. 5. Where any Federal agency has funds for the provision of housing in connection with national-defense activities it may, in its discretion, make transfers of those funds, in whole or in part, to the Administrator, and the funds so transferred shall be available for, but only for, any or all of the objects and purposes of and in accordance with all the authority and limitations contained in this Act, and for administrative expenses in connection therewith. SEC. 6. Moneys derived from rental or operation of property acquired or constructed under the provisions of this Act shall be returned to the appropriation authorized by this Act and shall be available for expenses of operation and maintenance, including administrative expenses in connection therewith. SEC. 7. Notwithstanding any other provisions of law, whether relating to the acquisition, handling, or disposal of real of other property by the United States or to other matters, the Administrator, acting through Public Buildings Administration, with respect to any property acquired or constructed under the provisions of this Act, is authorized by means of Government personnel, selected qualified private agencies, or public agencies (a) to deal with, maintain, operate, administer, and insure; (b) to pursue to final collection by way of compromise or otherwise, all claims arising therefrom; (c) to rent, lease, exchange, sell for cash or credit, and convey the whole or any part of such property and to convey without cost portions thereof to local municipalities for street or other public use: Provided, That any such transaction shall be upon such terms, including the period of any lease, as may be deemed by the Administrator to be in the public interest: Provided further, That any lease authorized hereunder shall not be subject to the provisions of section 321 of the Act of June 30, 1932 (47 Stat. 412). SEC. 8. In carrying out the provisions of this Act the Administrator is authorized to utilize employees and facilities of the Federal Works Agency and of its constituent units, and any funds appropriated pursuant to this Act shall be available for transfer to any such agency in reimbursement therefor. SEC. 9. The Administrator may enter into any agreements to pay annual sums in lieu of taxes to any State or political subdivision thereof, with respect to any real property acquired and held by him under this Act, including improvements thereon. The amounts so paid for any year upon any such property shall not exceed the taxes that would be paid to the State or subdivision, as the case may be, upon such property if it were not exempt from taxation. SEC. 10. Notwithstanding any other provision of law, the acquisition by the Administrator of any real property pursuant to this Act shall not deprive any State or political subdivision thereof of its civil and criminal jurisdiction in and over such property, or impair the civil rights under the State or local law of the inhabitants on such property. SEC. 11. The Administrator is authorized to make such rules and regulations as may be necessary to carry out the provisions of this Act. SEC. 12. If any provision of this Act, or the application thereof to any persons or circumstances, is held invalid, the remainder of this Act, or application of such provision to other persons or circumstances shall not be affected thereby. SEC. 13. At the beginning of each session of Congress, the Administrator shall make to Congress a full and detailed report covering all of the transactions authorized hereunder. The CHAIRMAN. I would like to make a brief preliminary statement. This is a measure which has to do with national defense housing as distinguished from the ordinary residential housing and slum clearance as carried on by the Housing Authority. The primary pur pose of this is to furnish quarters for the workers at various plants, who will be engaged in the construction that is authorized under the several billions of dollars of appropriations that we have made for that purpose. Some of these plants will likely be located at isolated places. Others, perhaps in areas more congested and where houses are not available. The principle purpose is to expedite national defense by providing available quarters for workers, which necessarily, as I understand, will be largely temporary. And there is a limitation in the bill of the amount that will be available for each unit. The Public Building Administration of the Federal Works Agency is designated in the bill as the organization to carry on this work, in view of the fact that it is a permanent organization of the Government that does building construction all over the United States and has the technical force available to carry out promptly the provisions of this measure. The Army and the Navy Departments and the Council of National Defense are very much interested in prompt action on this matter in order that the program of national defense may be speeded up from the standpoint of getting these various plants in satisfactory operation. Knowing that some of these gentlemen who are appearing this morning to testify before the Committee are very busy with many matters of national defense I want to take the liberty of calling upon them first for the statements they have to make in order that they may return to their other work. We will have as the first witness Admiral Morrell, of the Navy Department. STATEMENT OF REAR ADMIRAL B. MOREELL, CHIEF, BUREAU OF YARDS AND DOCKS, NAVY DEPARTMENT Admiral MOREELL. Mr. Chairman and gentlemen of the committee: The need for adequate housing for married enlisted personnel is becoming increasingly urgent as the Navy expands its operations, especially at such isolated stations as Pearl Harbor and in the Canal Zone. It is estimated that, at the present time, there are 42,000 married enlisted men in the Navy. Most of these men have children. When they go to sea their families usually move to the home port of the vessel on which the men are serving and when on shore duty the men live with their families. It has been definitely determined by careful investigation that it is of vital importance to the morale of these married enlisted men that their families be provided with adequate housing located in proper surroundings. The effect on the morale and behavior of married enlisted men who are compelled to live in unsanitary dwellings and unpleasant neighborhoods has been disastrous. In addition to married enlisted personnel, the number of civilians employed in naval activities and by privately owned industrial activities engaged on naval production has rapidly increased and will still further increase as the naval-expansion program progresses. If we are to complete the program as planned, these civilian employees must also be adequately housed. |