ment of the 1956 Housing Act, which carried provisions for this country's first programs of Federal aid for housing for the elderly, the association began the collection and publication of data on the nature and extent of the need for a program of housing for the aged. Our reference resources are at the disposal of this subcommittee.

Based on what we have learned over this long period of concern with the housing problems of the elderly, we anticipate that private builders will take a gradually increasing interest in this market. But the builder can do only a part of the job; his interest is in the family of moderate income, the independent family with no major health problems.

We must also be concerned with the large number of elderly single persons and families that gradually lose their capacity for independent living. And we must be concerned with those families with insufficient income to rent or buy the houses that the private market can provide. It is our observation that nonprofit corporations initiated by church organizations, union groups, and such specialized groups as retired schoolteachers are going to take on more and more responsibility for meeting the housing needs of those whom private builders cannot serve, with the exception of the families of the lowest income. These latter families, we believe, will have to rely more and more on the public housing program.

Because of the nature of the work of the members of our association, we can speak with the greatest competence on the role of public housing in meeting the needs of the elderly. Before concentrating our testimony on public housing, however, we should like to call the attention of the subcommittee to a few observations we have made with reference to the role of the private builder and the nonprofit corporation in providing housing for the elderly.

Representatives of the private builders will undoubtedly bring to your attention any problems encountered in financing such housing, whether through Federal Housing Administration insured loans or otherwise. We think that you may want to devise some means for alerting the builder to problems he has not yet seen make him aware of some of the special considerations that must go into the provision of such housing if he is not to find himself in trouble in later years or if he is not to bring trouble on communities and families that are equally unaware of the dangers ahead. If private builders do not plan the financing and management of the retirement villages they are sponsoring to serve not only the independent but the semi-independent and the wholly dependent elderly, trouble is bound to occur with 5 to 10 years or so of the opening of such a development. Just as suburban communities have run into trouble when they failed to provide for schools, parks, playgrounds, and shopping services for the young family, the builders of suburbs or developments for the aged will encounter serious problems if they do not arrange for the specialized social, health, and recreation needs of the elderly. Perhaps your subcommittee can devise a means of working with the builders who are becoming interested in housing for the elderly to assure that they avoid such pitfalls.

On the nonprofit front, the organizations that are taking the leadership here are, by and large, well aware of the various stages from independence to dependence through which most elderly people go. Groups of this kind are the ones that have had the longest experience in the field through the church homes and institutions that they have sponsored. They are well aware, in most instances, of the need for facilities for health, recreation, and education. They have a good deal to teach everyone about the whole subject of housing for the elderly. These groups are likely to be the major force in coping with the overall problem. But it has been our observation that many potential sponsors are frustrated by a wide variety of financing problems. Perhaps your subcommittee can be of real assistance to them in getting to the root of their troubles. One problem of which we believe you are already aware is the income tax status of these corporations. Apparently the problem has to do with the unwillingness of the Internal Revenue Service to give tax-exempt status to an organization of this kind until the housing is actually built and occupied.

Another potential area for study is the usefulness of a direct loan program. Our association is on record in favor of a program of this kind as proposed by Congressman Rains. We are at a loss to understand why there should be strenu ous objection to such loans in view of the precedents for this form of Federal aid in the GI home loan and college housing loan programs. In any case, there is a real field for study here. It is possible that direct loans should be reserved for families of certain income levels or for areas where normal financing sources are inoperative.

As we have noted, the particular concern of the National Association of Housing and Redevelopment Officials is with those elderly who are economically dependent in varying degrees. The public housing program, offering small apartments with rents based on ability to pay, makes possible independent living for the low income, healthy elderly. Each year has seen a steady increase in the demand for such units as a result of increased longevity and the impact of rising living costs on persons with small fixed incomes. As the proportion of aged and aging in our population grows-and all the evidence indicates that it willthere will be an expansion of the need for housing production for this group.

On the design front, for both public and private housing, we encourage a laboratory approach-experimentation in search of new methods and materials. We also advocate variation of approach in order to provide elderly families a choice in types of dwellings, recognizing that housing type preferences are as varied as people themselves. We see the advantage in some cases of multiple cottages and of free standing homes, sometimes dispersed in modest private neighborhoods among growing families. We see the virtue of the added security and safety that high-rise apartments can bring in certain settings. In public housing, it may be feasible to offer rooms with bath for the lone elderly, with the opportunity of sharing a common living room and kitchen. We think this treatment might be especially practical for men, in groups of about five. In short, we think variety of design that permits choices is a healthy concept.

With respect to the operation of public housing for the low-income elderly, it is apparent that the subsidy base must be broadened. Presently, we must limit the number of families in the minimum rent category whom we can accept, in order to preserve the financial feasibility of the public housing program. The Congress already has seen fit to increase the per-room construction cost ceiling to cover the cost of special safety features of housing for the elderly; the same kind of action is needed to meet the realities of the rent-paying ability of these families. It is possible now, of course, without financial jeopardy to the program, to increase the number of families of the lowest income, and, therefore, the most needy elderly, whom we can house by combining units for the elderly with units for younger and employed low-income families. But if the rising demand from the elderly is to be met, raising the subsidy level will be necessary. Needless to say, providing this added subsidy would be a more economical move than forcing elderly persons who are quite capable of independent living into the more costly and less acceptable types of institutions that our States and cities have long supported: the traditional old peoples' homes and hospitals. Not only would we achieve economy, but the families would be much healthier by virtue of continuing their independent living pattern. In our State of Texas, health officials are convinced that, if communities were to develop suitable housing, many older people could be released from State hospitals to enjoy years of happy, independent living. Realizing this kind of goal, of course, presupposes the availability of adequate health facilities in connection with the housing. Some exploration should be made by both the Public Housing Administration and State officials to see whether local housing authorities could join their efforts and funds within the State to plan and operate public housing for the needy elderly rather than build or expand State homes for the aged. We believe such a plan would be feasible and would prove economical both for the Federal and State Governments. Here, as in the design of housing for the elderly, we believe that we should proceed as though we were conducting a research project using these opportunities not only to test our housing ideas but as starting places for exploring ways to meet the other needs of the elderly.

Housing officials feel special concern over the general deficiency or absence of health facilities and programs for the elderly, when either long- or short-term illness strikes. Nursing homes, convalescent homes, and hospital care for terminal cases are woefully inadequate and often nonexistent for the low-income elderly. We know that public housing officials operating programs for the elderly have found themselves in serious trouble when tenants become ill and the community has no means of relieving a housing authority of responsibility for such tenants. In the end, programing health facilities in conjunction with public housing would not only prove more economical for a community but would recognize the close relationship of housing and health. We are now segmentizing the problem, and fragmentized planning means not only higher costs but inadequate services.

While the Federal Council on Aging attempts to coordinate the functions of Federal agencies at the Washington level relating to the elderly, the effect of

this coordination is not generally felt at the local level. Emphasis on more local programs of research in geriatrics and mental health sponsored by the Federal Government would not only give us new insights, nationally, on special problems but would provide needed local operating services. For example, psychiatric counseling would be invaluable in a housing project and might extend the period of independent living of some of our tenants for many years. The practical benefits of keeping families independent would in no way diminish the usefulness of the research findings. Present restrictions on the use of health and welfare funds often make such arrangements difficult.

If there is a single need in this entire field, it is to find a way to coordinate at the local level all programs for the elderly, so that plans can move ahead together. Public health clinic programs for children of low-income families function well. Similar services in the geriatrics field should be extended to the low-income elderly. As a minimum, such clinics should be responsible for preventive medical care. Exploration should be made of the use by housing authorities of Hill-Burton aid for nursing homes, with such homes planned by housing authorities in conjunction with State or local health organizations. On going operations and their costs should then properly become the responsibility of established health agencies. The same coordinated action is needed in the fields of recreation, education, and training for reemployment. In short, we need to coordinate our planning of everything needed to provide a suitable living environment over and above safe shelter that is within the financial reach of the lowincome elderly. Regional offices of the several Federal departments concerned with the elderly and local operating agencies functioning in this area should explore and map out a workable plan.

Now, and in the years ahead, ways and means must be devised to keep the older person active-to fill the gaps in his life, to rekindle his interest, to permit him to regain status through contribution, and thereby defer the onset of senility, which, in later years, so closely accompanies frustration and idleness. The community can help these individuals, the community can provide adult education programs, productive employment, opportunities for creative endeavor through properly planned recreational facilities. As related to the elderly, community activities are assuming much greater importance in social planning than ever before. With rare exceptions, housing agencies have neither the funds nor professional personnel needed for the planning and execution of such broad social programs. What's needed is a way to supplement the efforts of housing agencies in the initial planning stages of projects for the elderly.

The National Association of Housing and Redevelopment Officials has all of these considerations under study. It is our belief that fragmentized planning is costly; that the many programs for the elderly that are nationally supported can be coordinated at the Federal level, in order that the goal of making old age a rewarding experience will be more nearly and quickly achieved at the local level, where our problems exist.

To make concrete some of the theory I have been discussing, let me tell you briefly that the San Antonio Housing Authority is now building a 9-story apartment building for the elderly, with 185 apartments. After nearly 3 years of planning, it will soon be ready for occupancy. The first floor contains 5,600 square feet of community center, which will be operated by more than a dozen United Fund and other local public agencies. It will be a veritable USO for the elderly of our city. The Hogg Foundation of the University of Texas will provide a center coordinator for the first 3 years of operation and the experience will be the basis for a research publication. The center will be furnished and equipped through the generosity of local civic groups and individuals. Agencies who will staff the center participated in its planning and established requirements and criteria. Thus we hope to demonstrate the feasibility and wisdom of coordination of all efforts in this field. In addition, a cottage-motel-type housing project for the elderly is under construction, with a smaller but adequate community center.

I leave with the subcommittee a booklet entitled "Housing the Elderly," developed by the San Antonio Housing Authority and containing a description of the coordination of local efforts as well as design criteria appropriate to the housing needs of the elderly. A brochure on the community center is also here for your consideration.

May I close by repeating that our association's officers, board of governors, and staff stand ready to counsel with your subcommittee at any time in an effort to reach solutions to the housing and related problems of the aged and aging.

Mrs. MCGUIRE. I might comment on this matter of age. I noticed this morning that all the persons testifying have gray hair. Commenting for the women, I would say that we would only take the fifth amendment if you asked us our age. We are not 57, Senator Clark. Senator MCNAMARA. I thought those ladies had blond hair. I did not notice it was gray.

Mrs. MCGUIRE. Oh, it is blond, not gray. And the gentlemen?

I am representing the National Association of Housing and Redevelopment Officials, a nonprofit professional organization founded in 1933.

Our membership consists of civic leaders and administrators of lowrent public housing programs throughout the country as well as slumclearance programs and code-enforcement programs and everything having to do with city rebuilding.

As the Senator said, we in San Antonio have a program of 5,154 public housing units. About 15 percent of these public housing units are occupied by the elderly. The elderly in our terms, of course, are persons 65 or over. These elderly are elderly of low income. In San Antonio in our experience this means people with incomes between $50 and $75 per month.

The National Association of Housing and Redevelopment Officials began its work and study in the field of the housing needs of the aging in 1946. Since that time we have developed a number of studies, have done a great deal of research in an attempt to find out the special nature of the subject. We are very interested in the fact that some 10 years later, in 1956, the first legislation in the field of housing for the elderly was enacted.

Before getting into the particular problem of the low-income elderly with respect to housing and community facilities, I should like to mention briefly that the National Association of Housing and Redevelopment Officials also is interested in the whole field of housing. With respect to private builders, we believe that they have a very great and increasing role in providing housing particularly for the moderateincome family and more particularly for those who do not have major health problems.

We believe that the nonprofit organizations, the churches, fraternal organizations, unions, retired school teachers associations, and so on, have an increasingly important role and that they somehow will get together and take advantage of FHA insurance and other programs that the Federal Government makes possible to them.

We know, however, that the only program today that will adequately take care of the housing needs of these very low-income elderly people is the public housing program. Indeed, we feel that had we not had this program at this time, some such formula would have been developed.

We can see that some mistakes may possibly be made in the private field particularly.

We think the idea of retirement is one of them. Two great obstacles will have to be gotten around.

First, private builders must recognize that they are building for people who perhaps today are healthy but who may become semidependent and finally may become dependent.

Secondly, we are concerned that retirement villages may remove, segregate, older people from the on-goingness of the general com

munity. We think this has certain dangers. They should be integrated in the activity and life of the community rather than be set apart wholly and entirely.

Other facilities are also important. We believe that we should insist that private builders, undertaking such retirement villages, or other fine homes, must make, as a part of their management and financing plan, available to the elderly people proper recreational, health, educational, and possibly even employment opportunities.

The nonprofit organizations at this time, we know, are probably the most knowledgeable in the field of what the housing needs are and are aware of the gradual decline from independence to dependence. On them will fall a very heavy load.

However, we also know that their major problem is one of financing. We know that they are concerned today that the Internal Revenue Department, for instance, will not give them income-tax-deduction status until after the buildings that they are undertaking are actually built, and this puts a real strain upon them in their efforts to get tax-deductible funds from persons who otherwise would support their undertakings.

I think we need to study the usefulness of direct loans in this field. Perhaps these direct loans might possibly be limited to certain income levels or perhaps they might be limited to those parts of the country where private financial resources are inoperable. None of this is concerned primarily, however, with the economically dependent to varying degrees.

The public housing program, as the two Senators here know, offers small apartments with the rents scaled to the ability of the person to pay.

This provides years of independence for these people that they otherwise might not have. It permits them to stay in the normal community. It permits them to be surrounded by families of all ages and not to be segregated as older citizens with years of idleness before them in perhaps very modern conveniences.

The increased longevity, as the doctor has just pointed out, and the small fixed income, subject as it is to rising costs, makes a very serious problem in the field of the low income elderly.

What about housing for the elderly?

First, our association and those of us who are operating in this field believe that money should be available for special design, special health factors, recognizing the diminishing physical and mental alertness of our tenants. I think most housing authorities will admit tenants who only are healthy at the time of admittance, but we recognize in a short period of time, sometimes a longer period, but within a limited time these people will become less alert both mentally and physically. Therefore we must plan for this.

The architectural design sometimes is the difference between years. of independent living and having to go into an institution. It is simply a matter of the technique of design.

Thus we can avoid the great psychological crisis of leaving the community and going into an institutional pattern of living.

As the doctor has said, and everyone in testimony this morning, keep these older people in the stream of life as a part of the community and they will give us back tenfold in value from their experience and wisdom.