B-18583, AUGUST 25, 1941, 21 COMP. GEN. 167

B-18583, AUGUST 25, 1941, 21 COMP. GEN. 167

NAVAL HOUSING PROJECTS - INCLUSION OF GENERAL UTILITIES IN MAXIMUM UNIT COST THE TERM "UTILITIES," WHEN USED IN CONNECTION WITH BUILDING CONSTRUCTION, HAS REFERENCE TO SUCH ITEMS AS SEWER AND WATER FACILITIES, HEATING DEVICES, ELECTRIC WIRES AND FIXTURES, ETC., AND THE TERM "HEATING AND PLUMBING APPARATUS, WIRING AND FIXTURES" IS SUFFICIENTLY BROAD AND COMPREHENSIVE IN MEANING TO INCLUDE SIMILAR FACILITIES AND DEVICES. THE COSTS OF UTILITIES WHICH ARE REQUIRED BY VARIOUS NAVAL APPROPRIATION ACTS TO BE INCLUDED IN THE SPECIFIED MAXIMUM UNIT COST OF CERTAIN HOUSING CONSTRUCTION INCLUDE NOT ONLY SUCH ITEMS AS ARE LOCATED WITHIN OR IMMEDIATELY ADJACENT TO THE BUILDING WALLS, SUCH AS PLUMBING, HEATING, ETC., BUT, ALSO NECESSARY GENERAL UTILITIES SYSTEMS SUCH AS SEWAGE DISPOSAL, GAS, ELECTRICITY, AND WATER CONSTRUCTED AT GOVERNMENT EXPENSE. TO THE EXTENT THAT SUCH ITEMS AS THE CONSTRUCTION OF WALKS, IMPROVEMENT OF GROUNDS, ETC., ARE ESSENTIAL TO THE COMPLETION OF HOUSING UNITS OF THE TYPE CONTEMPLATED BY VARIOUS NAVAL APPROPRIATION ACTS, THE COST THEREOF SHOULD BE INCLUDED IN COMPUTING THE MAXIMUM UNIT COSTS SPECIFIED IN SAID ACTS. EXPENDITURES UNDER WORKS PROJECTS ADMINISTRATION PROJECTS, SUCH AS SEWER CONSTRUCTION AND WATER MAIN EXTENSIONS, IN CONNECTION WITH THE CONSTRUCTION OF CERTAIN HOUSING AUTHORIZED UNDER VARIOUS NAVAL APPROPRIATIONS MUST BE INCLUDED IN THE UNIT COST OF THE HOUSING FOR THE PURPOSES OF THE LIMITATIONS IN THE APPROPRIATION ACTS TO THE EFFECT THAT NO PART OF THE APPROPRIATIONS SHALL BE AVAILABLE OR BE OBLIGATED FOR THE ERECTION OF QUARTERS IN EXCESS OF THE UNIT COSTS SPECIFIED THEREIN.

COMPTROLLER GENERAL WARREN TO THE SECRETARY OF THE NAVY, AUGUST 25, 1941:

THERE HAS BEEN CONSIDERED YOUR LETTER OF JULY 7, 1941 (A16-1/N4 1/410411/U), AS FOLLOWS:

THE 1941 AND 1942 NAVAL APPROPRIATION ACTS PROVIDE LIMITATIONS ON THE AMOUNT OF MONEY WHICH MAY BE SPENT ON NAVY HOUSING PROJECTS, TO WIT:

PUBLIC NO. 667-76TH CONGRESS ( TITLE III, FIRST SUPPLEMENTAL NATIONAL DEFENSE APPROPRIATION ACT, 1941)

"NO PART OF THE APPROPRIATION UNDER THIS HEADING NOR ANY OTHER AMOUNT IN THIS TITLE FOR TEMPORARY HOUSING SHALL BE AVAILABLE FOR ERECTING, INCLUDING UTILITIES, UPON ANY SITE HOWEVER ACQUIRED SUBSEQUENT TO THE CALENDAR YEAR 1938, MARRIED OFFICERS' QUARTERS AT A UNIT COST OF MORE THAN $8,500, NOR BACHELOR OFFICERS' QUARTERS AT A UNIT COST OF MORE THAN $1,750, NOR STUDENT FLYERS' QUARTERS AT A UNIT COST OF MORE THAN $500; NOR BARRACKS FOR ENLISTED MEN AT A UNIT COST OF MORE THAN $350: PROVIDED FURTHER, THAT NO PART OF THE APPROPRIATION UNDER THIS HEADING, NOR OF ANY OTHER AMOUNT IN THIS TITLE FOR TEMPORARY HOUSING, SHALL BE AVAILABLE FOR ERECTING BUILDINGS UPON ANY SITE ACQUIRED SUBSEQUENT TO THE CALENDAR YEAR 1938, EXCEPT OF A DISTINCTLY TEMPORARY CHARACTER, UNLESS STRUCTURES (SUCH AS HOSPITALS, HANGARS, AND STORAGE FACILITIES FOR INFLAMMABLE OR EXPLOSIVE MATERIALS) OF A MORE SUBSTANTIAL TYPE ARE ESSENTIAL TO THE PURPOSE.'

PUBLIC NO. 29--- 77TH CONGRESS ( TITLE II, FIFTH SUPPLEMENTAL NATIONAL DEFENSE APPROPRIATION ACT, 1941)

"NO PART OF THE FOREGOING APPROPRIATION," PUBLIC WORKS, BUREAU OF YARDS AND DOCKS," MAY BE OBLIGATED FOR THE CONSTRUCTION, IN CONNECTION WITH EITHER OF THE ABOVE PROJECTS, OF QUARTERS, INCLUDING HEATING AND PLUMBING APPARATUS, WIRING AND FIXTURES, FOR GREATER AMOUNTS PER UNIT THAN FOLLOW: PERMANENT CONSTRUCTION: FOR COMMISSIONED OFFICER, $10,000; FOR COMMISSIONED WARRANT OR WARRANT OFFICER, $7,500; FOR ENLISTED MAN, $6,000. TEMPORARY CONSTRUCTION:FOR COMMISSIONED OFFICER, $7,500; FOR COMMISSIONED WARRANT OR WARRANT OFFICER, $5,000; FOR ENLISTED MAN, $3,500.'

PUBLIC NO. 48--- 77TH CONGRESS, NAVAL APPROPRIATION ACT 1942

"NO PART OF THIS APPROPRIATION SHALL BE EXPENDED FOR A PERMANENT TYPE OF CONSTRUCTION AT ANY SHORE ESTABLISHMENT OF ANY CHARACTER ACQUIRED SUBSEQUENTLY TO THE CALENDAR YEAR 1938, UNLESS SUCH ESTABLISHMENT SHALL BE DESIGNATED BY THE SECRETARY OF THE NAVY AS A PERMANENT ESTABLISHMENT, AND, IN THAT EVENT, A PERMANENT TYPE OF CONSTRUCTION SHALL BE USED ONLY TO MEET SUCH PERMANENT REQUIREMENTS AS THE SECRETARY OF THE NAVY MAY APPROVE: PROVIDED, THAT NOTHING HEREIN SHALL PREVENT CONSTRUCTION OF A TYPE SUFFICIENTLY SUBSTANTIAL FOR THE USE INTENDED NOR APPLY TO CONSTRUCTION PROJECTS NOW UNDER CONTRACT OR IN PROGRESS: PROVIDED FURTHER, THAT NO PART OF THIS APPROPRIATION AS CONTAINED IN THIS ACT MAY BE OBLIGATED FOR THE CONSTRUCTION OF QUARTERS, INCLUDING HEATING AND PLUMBING APPARATUS, WIRING AND FIXTURES, FOR GREATER AMOUNTS PER UNIT THAN FOLLOWS: PERMANENT CONSTRUCTION: FOR COMMISSIONED OFFICER, $10,000. FOR COMMISSIONED WARRANT OR WARRANT OFFICER, $7,500. FOR ENLISTED MAN, $6,000. TEMPORARY CONSTRUCTION: FOR COMMISSIONED OFFICER, $7,500. FOR COMMISSIONED WARRANT OR WARRANT OFFICER, $5,000. FOR ENLISTED MAN, $3,500.'

IN CERTAIN CASES W.P.A. FUNDS ARE BEING APPLIED IN NAVY YARDS AND NAVAL STATIONS TO NATIONAL DEFENSE HOUSING PROJECTS FOR SERVICES SUCH AS ROADS, WALKS, GROUNDS, SERVICE CONNECTIONS, ETC. AN EXAMPLE OF THE USE TO WHICH W.P.A. FUNDS HAVE BEEN APPLIED AT THE NAVY LOW-COST HOUSING PROJECT AT PASCAGOULA, MISS., IS SET FORTH BELOW. THESE W.P.A. FUNDS IN THIS AND IN SIMILAR PROJECTS HAVE NOT BEEN ALLOCATED TO THE NAVY DEPARTMENT.

CHART

ESTIMATED COST

ITEM LABOR MATERIAL OF NAVY MATERIAL TOTAL

R CONTRIBUTIONS DRAINAGE CANAL ------- $1,908.39 $2,274.16 -------------- - $4,202.55 THE WORK ON THE DRAINAGE CANAL CONSISTS OF CLEARING AND GRUBBING APPROXIMATELY THREE ACRES AND EXCAVATING APPROXIMATELY 20,000 CUBIC YARDS WHICH WILL RESULT IN A CANAL RUNNING FROM PASCAGOULA SOUND THROUGH UNOCCUPIED LAND, ABOUT 9,000 LINEAL FEET TO THE PROJECT SITE AND WILL PERMIT THE EMPTYING OF STORM SEWERS THAT ARE INSTALLED UNDER THE STREETS OF THE VARIOUS UNITS INTO THE CANAL AT SEVERAL POINTS THROUGHOUT THE UNITS, THEREBY DISPOSING OF EXCESSIVE WATER FROM THE FLAT AREAS OF THE PROJECT DURING PERIODS OF HEAVY RAINFALL.

CHART

ESTIMATED COST

ITEM LABOR MATERIAL OF NAVY MATERIAL TOTAL

CONTRIBUTIONS WATER MAIN

EXTENSIONS $4,474.55

$1,910.91 $9,426.02 $15,811.48 THIS WORK CONSISTS OF LAYING 3,500 FEET OF 10-INCH CAST IRON PIPE FROM THE TEE CONNECTION AT THE FOOT OF 150,000 GALLON WATER TANK TO THE PROJECT SITE AND LAYING 2,800 FEET OF 8-INCH CAST IRON PIPE TO TIE INTO THE VARIOUS UNITS AND BACK FEED ONE SECTION FROM AN EXISTING MAIN WHICH OPERATES TO FORM CIRCULATING LOOPS IN AND OUT OF THE PROJECT AREA. IT WAS NECESSARY TO PROVIDE AN ADEQUATE SUPPLY OF WATER FOR DOMESTIC PURPOSES AND FIRE PROTECTION DUE TO THE FACT THAT THERE WERE ONLY SMALL MAINS IN THAT PART OF PASCAGOULA WHERE THE PROJECT SITE IS LOCATED AND NONE WHERE THE MAIN UNITS OF THE PROJECTS ARE LOCATED.

CHART

ESTIMATED COST

OF NAVY MATERIAL

CONTRIBUTIONS SANITARY SEWERS ----- $31,648.72 $10,460.31 $25,246.13 $67,355.16 THIS ITEM CONSISTS OF INSTALLING AN OUTFALL SEWER SYSTEM FROM THE PROJECT SITE TO THE PASCAGOULA RIVER, WHICH INCLUDES THE LAYING OF 4,450 FEET OF 24-INCH VITRIFIED SEWER PIPE, 3,800 FEET OF 18-INCH VITRIFIED SEWER PIPE, 550 FEET OF 15-INCH VITRIFIED SEWER PIPE, AND 799 FEET OF 6-INCH LATERALS. THIS SEWER REQUIRED THE CONSTRUCTION OF THREE (3) LIFT STATIONS WHICH WILL OPERATE AS FOLLOWS: THE RAW SEWAGE WILL BE PUMPED FROM WET WELLS AND RAISED VERTICALLY; THEN FLOW BY GRAVITY FOR SEVERAL THOUSAND FEET UNTIL THE SEWER HAS REACHED ELEVATION ZERO; THEN INSTALL ANOTHER LIFT STATION AND CONTINUE THE PROCESS AS BEFORE, THE LAST LIFT STATION TO BE LOCATED AT THE SITE OF A PROPOSED SEWAGE TREATMENT PLANT AND TO BE CONSTRUCTED SO THAT AT SOME LATER DATE IT MAY BECOME AN INTEGRAL PART OF AN ACTIVATED SLUDGE PLANT. THIS WORK ALSO INCLUDES THE INSTALLATION OF 24 MANHOLES, THE RECONSTRUCTION OF 2 CULVERTS, AND CONSTRUCTING APPROXIMATELY 5,000 SQUARE FEET OF SHEETING AND SHORING.

CHART

ESTIMATED COST

ITEM LABOR MATERIAL OF NAVY MATERIAL TOTAL

CONTRIBUTIONS GRAND TOTAL -------- $38,031.66 $14,665.38 $34,672.15 $87,369.19

YOUR OPINION IS REQUESTED AS TO WHETHER THE LIMITATIONS OF THE NAVAL APPROPRIATION ACTS CITED RESTRICT THE SCOPE AND NATURE OF W.P.A. LABOR FOR THE PURPOSES INDICATED.

IT IS SPECIFICALLY PROVIDED IN THE PROVISION OF THE FIRST SUPPLEMENTAL NATIONAL DEFENSE APPROPRIATION ACT, 1941, APPROVED JUNE 26, 1940, 54 STAT. 609, QUOTED IN YOUR LETTER, THAT THE MAXIMUM COST FIGURES FOR CONSTRUCTION OF QUARTERS AS THEREIN OUTLINED SHALL INCLUDE THE COST OF ,UTILITIES.' SIMILARLY, IN THE QUOTED PROVISION OF THE FIFTH SUPPLEMENTAL NATIONAL DEFENSE APPROPRIATION ACT, 1941, APPROVED APRIL 5, 1941, 55 STAT. 128, AND THE NAVAL APPROPRIATION ACT, 1942, APPROVED MAY 6, 1941, 55 STAT. 167, IT IS PROVIDED THAT THE MAXIMUM COST SHALL INCLUDE ,HEATING AND PLUMBING APPARATUS, WIRING AND FIXTURES.'

THE TERM "UTILITIES," WHEN USED IN CONNECTION WITH BUILDING CONSTRUCTION, IS COMMONLY UNDERSTOOD TO HAVE REFERENCE TO SUCH ITEMS AS SEWER AND WATER FACILITIES, HEATING DEVICES, ELECTRIC WIRES AND FIXTURES, ETC. ALSO,"HEATING AND PLUMBING APPARATUS, WIRING AND FIXTURES" ARE SUFFICIENTLY BROAD AND COMPREHENSIVE IN MEANING TO INCLUDE SIMILAR FACILITIES AND DEVICES. IN THIS CONNECTION ATTENTION IS INVITED TO THE CASE OF LANIER V. LOVETT, 213 PAC. 391, 393, WHEREIN THE SUPREME COURT OF ARIZONA STATED, WITH RESPECT TO PLUMBING APPARATUS, THAT:

* * * THE MATERIAL USED IN A PLUMBING JOB IS PERHAPS UNDERSTOOD IN A A GENERAL WAY, AS WELL AS IF ENUMERATED, TO MEAN SUCH ARTICLES AS GAS, SEWER, AND WATER PIPES, BOILERS, SINKS, BATHTUBS, ETC. * * * TO SIMILAR EFFECT SEE SCULLY V. HALLIHAN, 6 N.E. (2D) 176, 180.

HOWEVER, IN THE PRESENT CASE IT IS NECESSARY NOT ONLY TO CONSIDER THE MEANING OF THESE TERMS, BUT, IN ADDITION TO CONSIDER THE EXTENT AND NATURE OF THE UTILITY ITEMS INTENDED BY THE CONGRESS TO BE INCLUDED WITHIN SAID TERMS--- THAT IS, WHETHER THESE WORDS ARE USED IN A COMPREHENSIVE SENSE TO INCLUDE ALL UTILITIES ITEMS OF EVERY CHARACTER AND DESCRIPTION THAT MAY BE NEEDED IN CONNECTION WITH THESE HOUSING UNITS, OR IN A MORE RESTRICTED SENSE SO AS TO INCLUDE ONLY SUCH ITEMS AS ARE LOCATED WITHIN OR IMMEDIATELY ADJACENT TO THE BUILDING WALLS, TOGETHER WITH THE EQUIPMENT, PIPES, ETC., NECESSARY TO CONNECT THE FACILITIES WITH A GENERAL PUBLIC UTILITIES SYSTEM. A REASONABLY ACCURATE UNDERSTANDING OF THE CONGRESSIONAL INTENTION IN THIS REGARD MAY BE GATHERED FROM THE GENERAL TERMS OF THESE AND SIMILAR PROVISIONS, WHEN CONSIDERED IN THE LIGHT OF THE LEGISLATIVE HISTORY THEREOF, THE PURPOSE OR NEED WHICH THE HOUSING QUARTERS ARE DESIGNED TO SERVE, ETC.

IN CONNECTION WITH EACH OF THE THREE INVOLVED APPROPRIATION ACT PROVISIONS QUOTED IN YOUR LETTER THE HOUSING FACILITIES ARE TO BE PROVIDED INCIDENT TO THE CONSTRUCTION OF VARIOUS NATIONAL DEFENSE PROJECTS--- PRINCIPALLY NAVAL AIR STATIONS--- AND SAID HOUSING FACILITIES FOR THE MOST PART ARE TO BE OF A TEMPORARY CHARACTER. THUS, IT IS SPECIFICALLY PROVIDED IN THE INVOLVED SECTION OF THE FIRST SUPPLEMENTAL NATIONAL DEFENSE APPROPRIATION ACT, 1941, THAT THE HOUSING CONSTRUCTION PROVIDED FOR THEREIN SHALL BE LIMITED TO "TEMPORARY HOUSING" (WITH CERTAIN EXCEPTIONS NOT HERE PERTINENT). ALSO, IT IS MADE CLEAR IN THE INVOLVED PROVISIONS OF THE FIFTH SUPPLEMENTAL NATIONAL DEFENSE APPROPRIATION ACT, 1941, AND THE NAVAL APPROPRIATION ACT, 1942, THAT THE CONSTRUCTION IS TO BE OF A TEMPORARY CHARACTER EXCEPT IN CASES WHERE AN ACTUAL NEED EXISTS FOR A MORE PERMANENT TYPE OF CONSTRUCTION. IN THIS CONNECTION, AND AS A MANIFESTATION OF THE GENERAL LEGISLATIVE INTENT WITH RESPECT TO THIS PHASE OF FEDERAL NATIONAL DEFENSE PROJECT ACTIVITIES, ATTENTION IS INVITED TO THE FOLLOWING EXCERPT FROM THE HOUSE REPORT ( NO. 247, 77TH CONG.) WITH RESPECT TO THE LAST-MENTIONED ENACTMENT--- THE NAVAL APPROPRIATION ACT, 1942:

A LASTING NEED NO DOUBT EXISTS FOR MANY PROJECTS UNDERWAY, SHORTLY TO BE UNDERTAKEN, OR LATER TO BE PRESENTED, BUT THE NAVAL EXPANSION IN SHIPS AND AVIATION NOW IN PROCESS IS IN PURSUANCE OF THE PRESENT TOTAL DEFENSE EFFORT; NOT IN MANY RESPECTS OF THE PERMANENT NEEDS AT ALL, AND, THEREFORE, THERE SHOULD BE AN ATTEMPT MADE IN THE SUBMISSIONS TO THE CONGRESS TO DISTINGUISH BETWEEN PROJECTS OF A PERMANENT CHARACTER AND PROJECTS OF A TEMPORARY CHARACTER.

SO FAR AS THE COMMITTEE IS ADVISED, THERE HAS BEEN NO ACTION TAKEN BY NAVAL POLICY-MAKING AGENCIES WHICH WOULD SERVE AS A GUIDE IN MAKING SUCH A DISTINCTION. THE COMMITTEE IS INCLINED TO THE OPINION, INDUCED BY PROJECT -COST ESTIMATES, THAT IF ANY TEMPORARY CONSTRUCTION IS CONTEMPLATED, IT MUST BE OF A VERY DURABLE CHARACTER. THAT ACCOUNTS IN PART FOR THE PROVISION CARRIED ON PAGE 45 OF THE BILL. IF OBSERVED IN SPIRIT WE MAY EXPECT LESS CONSTRUCTION OF A PERMANENT CHARACTER AND A CONSIDERABLE SAVING OF FUNDS. ( ITALICS SUPPLIED.) THE PROVISION "ON PAGE 45 OF THE BILL" IS THE ONE WHICH PLACES RESTRICTIONS UPON THE USE OF FUNDS FOR PERMANENT CONSTRUCTION.

FURTHERMORE, IT IS A REASONABLE ASSUMPTION THAT THE CONGRESS, IN AUTHORIZING THE CONSTRUCTION OF QUARTERS IN CONNECTION WITH NATIONAL DEFENSE PROJECTS AND IN PLACING LIMITATIONS AND RESTRICTIONS UPON THE AMOUNT WHICH MIGHT BE EXPENDED IN PROVIDING SUCH FACILITIES, WAS AWARE THAT IN SOME INSTANCES THE HOUSING UNITS WOULD OF NECESSITY BE LOCATED IN AREAS WHERE GENERAL MUNICIPAL PUBLIC UTILITY SYSTEMS WOULD NOT BE READILY ACCESSIBLE. IN OTHER WORDS, IT IS NOT TO BE PRESUMED THAT THE CONGRESS CONTEMPLATED THAT ALL THE HOUSING UNITS PROVIDED FOR WOULD BE LOCATED IN AREAS WHERE PUBLIC SEWER MAINS, WATER PIPES, ELECTRIC CABLES, ETC., WERE ALREADY PROVIDED AND THAT THE ONLY PLUMBING AND WIRING NEEDED WOULD BE THE CONNECTING OF LEAD-IN WIRES AND PIPES WITH A GENERAL UTILITY SYSTEM. THERE IS NOTHING IN THE TERMS OF THE ACTS, NOR IN THE LEGISLATIVE HISTORY THEREOF, WHICH JUSTIFIES ANY SUCH CONCLUSION.

IN A NUMBER OF INSTANCES WHERE THE CONGRESS HAS DEEMED ADVISABLE TO EXCLUDE THE USUAL UTILITY ITEMS, OR ANY OF THEM, FROM THE LIMITATIONS PLACED UPON THE COST OF CONSTRUCTING BUILDINGS, SPECIFIC LANGUAGE TO THAT EFFECT HAS BEEN USED. THUS, IN THE APPROPRIATION FOR SALARIES AND EXPENSES, FOREST SERVICE, 1942, ACT OF JULY 1, 1941, PUBLIC, NO. 144, 55 STAT. 408, IT IS PROVIDED: * * * THAT THE COST OF ANY BUILDING PURCHASED, ERECTED, OR AS IMPROVED, EXCLUSIVE OF THE COST OF CONSTRUCTING A WATER- SUPPLY OR SANITARY SYSTEM AND OF CONNECTING THE SAME WITH ANY SUCH BUILDING, AND EXCLUSIVE OF THE COST OF ANY TOWER UPON WHICH A LOOKOUT HOUSE MAY BE ERECTED, SHALL NOT EXCEED $7,500, * * *

AGAIN, IN THE ACT OF OCTOBER 14, 1940, PUBLIC, NO. 849, 54 STAT. 1126--- WHICH IS COMPARABLE TO THE ACTS HERE UNDER CONSIDERATION IN THAT IT IS AN ACT WHICH PROVIDES FOR HOUSING FACILITIES IN CONNECTION WITH NATIONAL DEFENSE--- IT IS PROVIDED: * * * THE COST PER FAMILY DWELLING UNIT SHALL NOT EXCEED AN AVERAGE OF $3,000 FOR THOSE UNITS LOCATED WITHIN THE CONTINENTAL UNITED STATES NOR AN AVERAGE OF $4,000 FOR THOSE LOCATED ELSEWHERE, AND THE COST OF NO FAMILY DWELLING UNIT SHALL EXCEED $3,950 WITHIN THE CONTINENTAL UNITED STATES OR $4,750 ELSEWHERE, EXCLUSIVE OF EXPENSES OF ADMINISTRATION, LAND ACQUISITION, PUBLIC UTILITIES, AND COMMUNITY FACILITIES, AND THE AGGREGATE COST OF COMMUNITY FACILITIES SHALL NOT EXCEED 3 PERCENTUM OF THE TOTAL COST OF ALL PROJECTS.

ALSO, SEE SECTION 15 (5) OF THE UNITED STATES HOUSING AUTHORITY ACT OF 1937, 50 STAT. 896, WHERE "NONDWELLING FACILITIES" ARE EXCLUDED IN COMPUTING FAMILY DWELLING UNIT COSTS--- A "NONDWELLING FACILITY" BEING DEFINED TO INCLUDE "SITE DEVELOPMENT, IMPROVEMENTS AND FACILITIES LOCATED OUTSIDE BUILDING WALLS (INCLUDING STREETS, SIDEWALKS, AND SANITARY, UTILITY, AND OTHER FACILITIES).'

WITH RESPECT TO THE PROJECTS HERE UNDER CONSIDERATION IF THE CONGRESS HAD INTENDED THAT SUCH FACILITIES WERE TO HAVE BEEN EXCLUDED IN COMPUTING THE COST LIMITATIONS PLACED UPON THE HOUSING UNITS, NO REASON IS APPARENT WHY SUCH INTENT SHOULD NOT HAVE BEEN EXPRESSED BY A PROVISION SIMILAR TO THOSE CONTAINED IN THE ABOVE ACTS. INSTEAD OF EXCLUDING SUCH ITEMS, HOWEVER, THEY HAVE BEEN EXPRESSLY INCLUDED BY THE USE OF BROAD AND COMPREHENSIVE TERMINOLOGY. UNDER SUCH CIRCUMSTANCES IT WOULD APPEAR THAT THE CONGRESS, WITH FULL AWARENESS OF THE NATURE AND EXTENT OF THE HOUSING NEEDS FOR WHICH PROVISION WAS BEING MADE, CONCLUDED THAT THE AMOUNT SPECIFIED WOULD BE SUFFICIENT TO PROVIDE SATISFACTORY HOUSING FACILITIES--- COMPLETE WITH ALL NEEDED UTILITIES, SUCH AS PLUMBING, HEATING, SEWERS, ETC. ALSO, IT IS CONSIDERED THAT TO THE EXTENT SUCH ITEMS AS THE CONSTRUCTION OF WALKS, IMPROVEMENT OF GROUNDS, ETC., ARE ESSENTIAL TO COMPLETION OF HOUSING UNITS OF THE TYPE CONTEMPLATED BY THESE ACTS, THE COST THEREOF WAS INTENDED TO BE INCLUDED AS A PART OF THE PER UNIT HOUSING COST AND, THEREFORE, WITHIN THE PRESCRIBED LIMITATION.

ACCORDINGLY, CONSIDERING THE TERMS OF THESE ACTS AS A WHOLE, AND IN THE LIGHT OF THE PURPOSE INTENDED TO BE SERVED BY THE HOUSING FACILITIES FOR WHICH PROVISION WAS MADE, THE CONCLUSION APPEARS REQUIRED THAT THE COST OF ALL NECESSARY UTILITIES--- INCLUDING SEWAGE DISPOSAL, GAS, ELECTRICITY, WATER, WALKS, IMPROVEMENT OF GROUNDS, AND ALL OTHER SIMILAR ITEMS NECESSARY TO MAKE EACH UNIT A COMPLETE AND MODERN LIVING QUARTERS--- WAS INTENDED TO BE INCLUDED IN THE MAXIMUM PER UNIT COMPUTATION; AND THAT, CONSEQUENTLY, EXPENDITURES UNDER THE WORKS PROJECT ADMINISTRATION PROJECTS SET FORTH IN YOUR SUBMISSION, AS WELL AS UNDER OTHER SIMILAR PROJECTS, MUST BE TAKEN INTO CONSIDERATION AND INCLUDED IN THE COST OF THE HOUSING UNITS UNDER THE LIMITATIONS REFERRED TO IN YOUR LETTER.