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COMMITTEE ON
BANKING, HOUSING AND URBAN AFFAIRS

UNITED STATES SENATE

NINETY-FOURTH CONGRESS

FIRST SESSION

ON

S. 1988...
TO PROVIDE, ON A DEMONSTRATION BASIS, EMERGENCY
RELIEF FOR THE GENERAL WELFARE AND SECURITY OF THE
UNITED STATES BY PREVENTING THE LOSS OF EXISTING
HOUSING UNITS THROUGH THE PHENOMENON OF HOUSING
ABANDONMENT, TO PROTECT THE HEALTH AND LIVING
STANDARDS IN COMMUNITIES AND NEIGHBORHOODS
THREATENED BY ABANDONMENT, TO PROTECT THE INTER-
ESTS OF THE UNITED STATES IN CONNECTION WITH CERTAIN
MORTGAGE TRANSACTIONS, TO ASSIST LOCAL PUBLIC BODIES
IN THE DEVELOPMENT AND REDEVELOPMENT OF WELL-
PLANNED, INTEGRATED, RESIDENTIAL NEIGHBORHOODS AND
IN THE DEVELOPMENT AND REDEVELOPMENT OF COM-

MUNITIES, AND FOR OTHER PURPOSES

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OAKLAND, CALIF.—AUGUST 28, 1975
LOS ANGELES, CALIF.- AUGUST 29, 1975

SEP 1976

Printed for the use of the
Committee on Banking, Housing and Urban Affairs

DEPART

SOUVENT

U.S. GOVERNMENT PRINTING OFFICE

71-509 O

WASHINGTON : 1975

COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS

WILLIAM PROXMIRE, Wisconsin, Chairman JOHN SPARKMAN, Alabama

JOHN TOWER, Texas HARRISON A. WILLIAMS, JR., New Jersey EDWARD W. BROOKE, Massachusetts THOMAS J. MCINTYRE, New Hampshire BOB PACKWOOD, Oregon ALAN CRANSTON, California

JESSE HELMS, North Carolina
ADLAI E. STEVENSON, Illinois

JAKE GARN, Utah
JOSEPH R. BIDEN, JR., Delaware
ROBERT MORGAN, North Carolina

KENNETH A. MCLEAN, Staff Director
ANTHONY T. CLUFF, Minority Staff Director

CAROLYN JORDAN, A88istant Counsel

SUBCOMMITTEE ON HOUSING AND URBAN AFFAIRS

JOHN SPARKMAN, Alabama, Chairman WILLIAM PROXMIRE, Wisconsin

EDWARD W. BROOKE, Massachusetts HARRISON A. WILLIAMS, JR., New Jersey JOHN TOWER, Texas THOMAS J. MCINTYRE, New Hampshire BOB PACKWOOD, Oregon ALAN CRANSTON, California

JAKE GARN, Utah
JOSEPH R. BIDEN, JR., Delaware

CARL A. S. COAN, Staff Director
JEREMIAH S. BUCKLEY, Minority Counsel

(II)

CONTENTS

Page

4

28

(III)

274ST
XL

ADDITIONAL STATEMENTS AND DATA

Page

37

45

45 46 47 95

From the East Oakland Housing, November 6, 1974.
Article from the McGraw-Hill News, Chicago, Ill..
City of Oakland, letter from Cecil S. Riley, city manager, to the city coun-

cil.--
Housing advisory and appeals board, Resolution No. 2850.
Evaluation Report: The as-is property disposition sales program.
HM mortgage letter 74-14 from H. R. Crawford..
Bank of America News, “Unique Bank Programs To Aid Blighted Areas

of Three Cities”.
Preliminary report by Michael L. Grigoni, housing foreclosure and aban-

donment. HUD, Housing Management, H. R. Crawford. Veterans Administration, letter to Senator Cranston regarding abandon

mento

104

114 127

140

TABLES

57 116 118

Critical path of defaulted home..
HUD aquisitions by FHA program..
Cities with over 25 HUD-acquired properties as of March 12, 1975.
Number of HUD owned properties, Los Angeles area office, by city, by

program.-
Foreclosure process under deed of trust---
Calculations to determine greatest net dollar return for programming con-

118 122

sideration --
HUD owned properties FHA insurance program.
Delmann Heights/California Gardens revitalization study.
Notice of auction.-

123 143 212 216

ABANDONMENT DISASTER DEMONSTRATION

RELIEF ACT OF 1975

THURSDAY, AUGUST 28, 1975

U.S. SENATE, COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS, SUBCOMMITTEE ON HOUSING AND URBAN AFFAIRS,

Oakland, Calif. The subcommittee met at 10 a.m. at Melrose School, 1325 53d Ave., Oakland, Calif., Senator Alan Cranston, a member of the subcommittee, presiding.

Present: Senator Cranston and Congressman Pete Stark.

Also present: Carolyn Jordan, assistant counsel, Banking, Housing and Urban Affairs Committee, and Jerry Buckley, minority counsel, Housing Subcommittee, Banking, Housing and Urban Affairs Committee.

Senator CRANSTON. The hearing will please come to order.

Congressman Stark will join us shortly but in order to assure we have plenty of time, we are going to start now.

I will make an opening statement and then we will have three panels that will appear before the committee.

OPENING STATEMENT OF SENATOR CRANSTON

Senator CRANSTON. Last year Senators Hart, Mondale, and I introduced S. 3115, the Housing Abandonment Disaster Demonstration Relief Act, a bill to test a new mechanism for acquiring and disposing of abandoned property and to develop new financial resources for localities afflicted by the disaster of large scale housing abandonment.

Because of the urgency of this problem we have introduced this bill again this year as S. 1988.

Housing abandonment is still a major menacing housing problem in our urban cities. Housing abandonment is a problem of poor people concentrated in overcrowded, unsafe, and unsanitary housing units, of streets scarred by vandalism and fire, of neighborhoods shunned by businesses and investors, of cities with dying central cores.

Housing abandonment is creating housing, crime, health, and tax crises in many of the Nation's cities.

The last national survey in 1971 completed by the Library of Congress on national levels of housing abandonment indicated the growing magnitude of this problem.

Conservative estimates on the number of nongovernment-owned abandoned units for example, run around 100,000 in New York, 12,000 in Baltimore, 10,000 in St. Louis, and 5,738 in Oakland.

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