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feel that there should be some consideration given to removing an arbitrary term of years requirement, which in effect is a red flag in the face of the investing public.

Representative HOLIFIELD. Mr. Joyce, did you have anything you wished to say?

Mr. JOYCE. No, Mr. Chairman, other than to make a couple of brief remarks.

We do appreciate the consideration, particularly the enlightened and piercing questions asked, that have gotten to the core of the situation so quickly.

Representative HOLIFIELD. Thank you.

The hearing is adjourned.

(Whereupon, at 12 noon, Thursday, August 24, 1967, the subcommittees adjourned, to reconvene at the call of the Chair.)

APPENDIXES

APPENDIX 1

PROPOSED LEGISLATION PROVIDING FOR GRANTING OF PRIORITIES IN CONNECTION WITH SALES OF APARTMENT HOUSES AT LOS ALAMOS, N. MEX., INTRODUCED BY CONGRESSMAN MORRIS AND SENATOR ANDERSON ON APRIL 26, 1967

H.R. 9199 [S. 1623 AN IDENTICAL BILL]

[H.R. 9199, 90th Cong., first sess.]

A BILL To amend section 58 of the Atomic Energy Community Act of 1955, as amended

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That section 58 of the Atomic Energy Community Act of 1955, as amended, is amended to read as follows:

"§ 58. Priority sale of apartment houses

"a. The Commission is authorized at Los Alamos to grant to occupants, project-connected persons, and persons residing in the community at the time of offering of an apartment house for sale, and to any of the foregoing persons acting together, such priority interests and priority rights for the purchase of the apartment house as the Commission determines to be fair and reasonable: Provided, That a first priority right to purchase shall be granted only to an occupant or a group of occupants, or an assignee of the priority interests of such occupants, who or which has obtained the priority interest of at least 70 per centum of the occupants of the apartment house: Provided further, That a second priority right to purchase shall be granted only to an entity whose membership or ownership consists of at least one occupant, as well as projectconnected persons and persons residing in the community (or of any of the foregoing persons) and whose membership or ownership equals in number, and occupies or agrees to occupy, at least 70 per centum of the housing units in the apartment house. The 15 per centum deduction specified by subsection 35 a., the deduction provided by subsection 36 d., the financing provisions of section 62, and the indemnity provided by sections 63, 64, 65, and 66 shall be applicable to such priority sales of apartment houses. Priority interests granted by the Commission under this section shall be transferable as the Commission may by rule or regulation prescribe, but no priority right to purchase shall be transferred except as provided by section 43.

"b. Any occupant who does not purchase or participate in the purchase of an apartment house with respect to which a priority right to purchase has been granted shall be entitled, at the time of sale by the Commission, to a lease for occupancy of his housing unit for a period not to exceed fifteen months from the date the property was first offered for sale: Provided, That the occupant makes application for such a lease within 30 days of the grant of such priority to purchase. In selling any apartment house with respect to which a lease executed under this section is in effect, the Commission is authorized to provide for the purchaser to assume any or all obligations of the lessor. The Commission in such event shall guarantee the lessees performance of the lease.

"c. Persons who have purchased, either individually or jointly with other persons, a single-family or duplex house at Los Alamos pursuant to a priority right under this Act shall not be eligible to purchase or participate in the priority purchase of an apartment house.

"d. The Commission is authorized to prescribe by rule or regulation such other conditions as it may find necessary or desirable for qualification of priority interests and rights for the purchase of an apartment house."

SEC. 2. The table of contents of the Atomic Energy Community Act of 1955, as amended, is amended by inserting a new heading entitled "Sec. 58. Priority Sale of Apartment Houses."

APPENDIX 2

JOINT COMMITTEE PRESS RELEASES ANNOUNCING HEARINGS ON Los ALAMOS HOUSING LEGISLATION, JULY 31 AND AUGUST 9, 1967

[Joint Committee on Atomic Energy, July 31, 1967]

HEARINGS TENTATIVELY SCHEDULED FOR AUGUST 11 ON BILLS TO CHANGE PROCEDURES FOR SALE OF MULTI-FAMILY DWELLINGS AT LOS ALAMOS, NEW MEXICO Congressman Thomas G. Morris, Chairman of the Subcommittee on Communities of the Joint Congressional Committee on Atomic Energy, today announced that the Subcommittee tentatively planned to hold public hearings at Los Alamos on Friday, August 11, 1967 commencing at 9:00 a.m., concerning identical bills (H.R. 9199; S. 1623) introduced on April 26, 1967, by Congressman Morris and Senator Clinton P. Anderson. These bills would amend the Los Alamos Community disposal legislation (specifically, section 58 of the Atomic Energy Community Act of 1955) to permit the Atomic Energy Commission to carry out the recommendations of a special committee appointed by the AEC to study sale of multi-family dwellings. The study committee's recommendations were made public on April 19. Among other things, the study committee proposed that multifamily dwellings be sold on a priority basis not only to cooperatives but to certain other entities as well.

It is anticipated that representatives of the Atomic Energy Commission and of the Department of Housing and Urban Development will testify at these hearings, to be followed by interested members of the public.

The final date for the hearings, which is subject to the schedule of legislative business in Congress, will be announced shortly. Persons desiring to testify should notify Leonard M. Trosten, Staff Counsel of the Joint Committee, no later than Saturday, August 5, 1967.

[Joint Committee on Atomic Energy, August 9, 1967]

SCHEDULE CONFIRMED FOR AUGUST 11 HEARINGS ON LOS ALAMOS HOUSING Congressman Thomas G. Morris, Chairman of the Subcommittee on Communities of the Joint Congressional Committee on Atomic Energy, today confirmed the schedule for the Subcommittee's public hearings on Friday, August 11, 1967 in Los Alamos, New Mexico, concerning H.R. 9199 and S. 1623. These bills, introduced by Congressman Morris and Senator Clinton P. Anderson, would change the procedures for sale of multi-family housing units at Los Alamos.

The hearings, which will be held at the Civic Auditorium, will convene at 9:00 A.M. The following witnesses are expected to appear on behalf of the Atomic Energy Commission and the Department of Housing and Urban Development: Herman Roser, Los Alamos Area Manager, AEC; Franklin N. Parks, Associate General Counsel, AEC; Joseph P. Smith, Director, Community Disposition Staff, DHUD.

The following persons have also requested an opportunity to appear and it is expected that they will testify: Allen Rawcliffe, Barbara Hoak, Philip Thompson, Chuck Caldwell.

APPENDIX 3

REPORT OF THE COMMITTEE ON DISPOSAL OF MULTIPLE-FAMILY HOUSING AT LOS ALAMOS, MARCH 30, 1967

INTRODUCTION

The Committee on Disposal of Multiple-Family Housing at Los Alamos was created November 22, 1966, by the Atomic Energy Commission. Its creation followed a visit to Los Alamos by Commissioner Wilfrid Johnson and General Manager Robert Hollingworth when they were informed of considerable dissatisfaction with the proposed procedures for the disposal of the multiple-family housing. The Committee was established to study the situation; to meet with residents of Los Alamos and obtain their suggestions and recommendations as to alternative methods for disposal consistent with the objectives of the Atomic Energy Community Act of 1955, as amended, and to report to the Commission. The Committee members are:

Mr. Richard T. Curtis, Assistant Director, Rental Housing Division, Federal Housing Administration, 811 Vermont Avenue, N.W., Washington, D.C. Dr. John H. Manley, Research Advisor, Los Alamos Scientific Laboratory, Los Alamos, New Mexico.

Mr. John C. Ryan, Director, Office of Economic Impact and Conversion, U.S. Atomic Energy Commission, Washington, D.C.

Mr. William O. Sanford, Deputy Assistant Commissioner for Property Disposition, Federal Housing Administration, 1001 Vermont Avenue, N.W., Washington, D.C.

Dr. Raemer E. Schreiber, Technical Associate Director, Los Alamos Scientific Laboratory, Los Alamos, New Mexico.

Mr. Franklin N. Parks, Associate General Counsel, U.S. Atomic Energy Commission, Washington, D.C.

The Committee met in Los Alamos December 12 and 13, 1966, to obtain background information and to inspect the community and vacant units of the various types of multiple-family housing. On January 12, 1967, the Committee held a public meeting in the auditorium of the Los Alamos Scientific Laboratory to which all interested residents were invited. The Committee received comments and suggestions from approximately 20 residents, the Board of County Commissioners, the Board of Educational Trustees, and the Los Alamos Representative to the New Mexico Legislature. Representatives of the Commission's Los Alamos Area Office and the Department of Housing and Urban Development were also present and contributed to the meeting.

DISCUSSION

The Atomic Energy Community Act of 1955, the original Disposal Act, was concerned only with the disposal of the Government's interest in the communities at Oak Ridge, Tennessee, and Hanford, Washington. That Act was amended in 1962 by Public Law 87-719 to apply its provisions to the community at Los Alamos, New Mexico. The policy of the Atomic Energy Community Act is as follows:

"SEC. 11. DECLARATION OF POLICY.-It is hereby declared to be the policy of the United States of America that Government ownership and management of the communities owned by the Atomic Energy Commission shall be terminated in an expeditious manner which is consistent with and will not impede the accomplishment of the purposes and programs established by the Atomic Energy Act of 1954. To that end, it is desired at each community to

"(a) facilitate the establishment of local self-government;

"(b) provide for the orderly transfer to local entities of municipal functions, municipal installations, and utilities; and

"(c) provide for the orderly sale to private purchasers of property within those communities with a minimum of dislocation."

It is noted that the policy contemplates termination of Government ownership and management in an expeditious manner and disposal of property with a minimum of dislocation. In addition to extending the Atomic Energy Community Act to Los Alamos, Public Law 87-719 made some significant amendments to that Act which are applicable only at Los Alamos. For example, at Oak Ridge and Hanford splitting of duplex buildings or other multifamily structures was not authorized. All apartment buildings at those communities were sold to the highest bidder and both parts of duplexes were sold to a single purchaser. Public Law 87-719 provided that at Los Alamos family units in duplexes and other multifamily structures could under certain circumstances be split and sold as separate single family units. The reason for this was that while the Oak Ridge and Hanford communities had the customary ratio of single family houses as compared to apartment-type housing units, the reverse was true at Los Alamos where about twothirds of the housing units were located in multifamily structures. The Act provided that in determining whether a multifamily building could be split "the Commission shall consider (1) the practicability of selling separately the single family units, and (2) the insurability of mortgages under section 223 (a) of the National Housing Act, as amended." (Section 41 c.) The Committee report explained that this provision would enable more individuals to purchase singlefamily houses. It also stated that "The decision as to whether any particular residential structure should be sold as separate single-family houses would rest in the AEC and would be based on the feasibility of splitting the structure, considering its utility systems, heating units, etc. The AEC will also consider the insurability of mortgages on the property in determining whether a building should be so split." (Sen. Rept. 1792, p. 11, 87th Cong.) It becomes apparent that while splitting of multifamily residences was authorized to provide more single family houses, Congress made splitting subject to controls desirable from the point of view of both future purchasers and the Government. The Commission was not to split multifamily residences and sell the resulting single family units if those units would not meet minimum standards to qualify for FHA insurance. This was a valuable protection to potential purchasers. It prevented the creation of substandard single family housing units which purchasers might have great difficulty in reselling and which could become a burden on the community. At the same time the Commission was to exercise prudent business judgment in deciding whether splitting was feasible and could be accomplished at a reasonable cost to the Government.

In testimony on the bill which became Public Law 87-719 the Commission indicated it intended to split as many of the duplexes and other multifamily housing structures as possible. At that time, prior to enactment of Public Law 87-719 and before any engineering studies were made, it was thought that almost all of the duplexes could be split and that Group 12 and Group 14B quadruplexes could be split into single family units and disposed of as such. However, when an engineering study of the duplexes and quadruplexes was conducted in 1963 it was determined that of 449 duplexes it would be practicable to split only 149. It was also determined that it was not practicable to split any of the quadruplexes into separate family units. For example, it was determined to be impracticable to split the Group 12 quadruplexes into separate family units because of "common pipe chases and vent piping in common walls, foundation access and heater locations." The same determination was made with respect to the Group 14B quadruplexes because of "common vent areas, pipe chases and air space with separate walls." The "as built" drawings of the quadruplexes confirm the physical conditions underlying these determinations. It was concluded that any program to separate these quadruplexes into separate single family units that would meet FHA insurability standards would be prohibitively expensive. Consequently, the expectation reflected in the legislative history that most duplexes and many quadruplexes could be split into single family units for sale did not materialize. In this connection the Committee was informed at the January 12 meeting with Los Alamos residents that a duplex which the Commission had concluded it would be impractical to split and sell as separate family units had in fact been split by the purchaser and is now two separate family units. Subsequently, the Committee was informed that this separation was accomplished by replatting the property into three units, not two, the third being a utility area, now jointly owned, common to both parts of the duplex.

The classification of all of the quadruplexes as apartment buildings was published by the Commission on August 30, 1965. This was important because another unique feature of Public Law 87-719 was that it authorized the Commission to grant a priority to cooperatives for the purchase of apartment buildings at Los

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