B-50546, JULY 10, 1945, 25 COMP. GEN. 25

B-50546: Jul 10, 1945

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WHICH IS PERMANENT LEGISLATION. WHICH HAVE THE EFFECT OF CONSOLIDATING ALL FUNDS ALLOCATED TO THE NAVY DEPARTMENT UNDER CERTAIN ACTS FOR TEMPORARY AND LOW-COST DEFENSE HOUSING PROJECTS AND OF REQUIRING THAT ALL RECEIPTS DERIVED FROM THE RENTAL OR OPERATION OF SUCH PROJECTS BE DEPOSITED AS MISCELLANEOUS RECEIPTS. IS EXCLUSIVELY AVAILABLE FOR THE MAINTENANCE AND OPERATING COSTS OF TEMPORARY OR EMERGENCY HOUSING FACILITIES CONSTRUCTED WITH FUNDS APPROPRIATED DIRECTLY TO THE NAVY DEPARTMENT. WHICH ARE UNDER THE COGNIZANCE OF THE BUREAU OF YARDS AND DOCKS. THERE IS NO AUTHORITY. HAS MADE IT IMPERATIVE FOR THE DEPARTMENT TO ESTABLISH HOUSING FACILITIES TO ALLEVIATE THIS CONDITION AT THOSE PLACES WHERE SUCH ACCOMMODATIONS ARE NOT AVAILABLE.

B-50546, JULY 10, 1945, 25 COMP. GEN. 25

HOUSING FOR OCCUPANCY BY NAVAL PERSONNEL AND DEPENDENTS THE ACT OF JULY 2, 1945, WHICH IS PERMANENT LEGISLATION, HAS THE EFFECT OF PERMITTING MILITARY AND NAVAL PERSONNEL--- IRRESPECTIVE OF RANK OR GRADE--- AND THEIR DEPENDENTS TO OCCUPY ON A RENTAL BASIS TEMPORARY OR EMERGENCY HOUSING FACILITIES, OTHER THAN "PUBLIC QUARTERS," UNDER THE JURISDICTION OF ANY GOVERNMENT DEPARTMENT OR AGENCY, WITHOUT LOSS OF RENTAL ALLOWANCE OR MONETARY ALLOWANCE IN LIEU OF QUARTERS, REGARDLESS OF WHETHER SUCH OCCUPANCY BE ON A PERMANENT, SEMI-PERMANENT OR TEMPORARY BASIS. THE PROHIBITION CONTAINED IN THE ANNUAL NAVAL APPROPRIATION ACTS AGAINST SUPPLYING OR REPLACING TABLE LINEN, DISHES, GLASSWARE, SILVER AND KITCHEN UTENSILS FOR USE IN "THE RESIDENCES OR QUARTERS OF OFFICERS ON SHORE"--- WHICH HAS REFERENCE PRIMARILY TO ASSIGNED PUBLIC QUARTERS- - DOES NOT PRECLUDE THE USE OF NAVAL APPROPRIATIONS TO PROVIDE CERTAIN FURNISHINGS AND HOUSEKEEPING ESSENTIALS IN CONNECTION WITH THE CONSTRUCTION AND RENTAL OF EMERGENCY HOUSING FACILITIES TO NAVAL PERSONNEL AND THEIR DEPENDENTS. IN VIEW OF THE GENERAL PROVISIONS OF SECTIONS 3617 AND 3618, REVISED STATUTES, AND OF THE PROVISIONS OF SECTION 119 OF THE NAVAL APPROPRIATION ACT, 1945, WHICH HAVE THE EFFECT OF CONSOLIDATING ALL FUNDS ALLOCATED TO THE NAVY DEPARTMENT UNDER CERTAIN ACTS FOR TEMPORARY AND LOW-COST DEFENSE HOUSING PROJECTS AND OF REQUIRING THAT ALL RECEIPTS DERIVED FROM THE RENTAL OR OPERATION OF SUCH PROJECTS BE DEPOSITED AS MISCELLANEOUS RECEIPTS, ALL SUCH RECEIPTS, INCLUDING THOSE DERIVED FROM PROJECTS CONSTRUCTED WITH FUNDS APPROPRIATED DIRECTLY TO THE NAVY DEPARTMENT, MUST BE COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS, WITHOUT DEDUCTION FOR OPERATION AND MAINTENANCE EXPENSES. THE APPROPRIATION ITEM," MAINTENANCE, BUREAU OF YARDS AND DOCKS," IN THE NAVAL APPROPRIATION ACT, 1946, IS EXCLUSIVELY AVAILABLE FOR THE MAINTENANCE AND OPERATING COSTS OF TEMPORARY OR EMERGENCY HOUSING FACILITIES CONSTRUCTED WITH FUNDS APPROPRIATED DIRECTLY TO THE NAVY DEPARTMENT, AS WELL AS SUCH HOUSING CONSTRUCTED WITH FUNDS ALLOCATED TO THAT DEPARTMENT UNDER VARIOUS ACTS, WHICH ARE UNDER THE COGNIZANCE OF THE BUREAU OF YARDS AND DOCKS. THERE IS NO AUTHORITY, UNDER THE APPROPRIATION ITEM, MAINTENANCE, BUREAU OF SUPPLIES AND ACCOUNTS, 1946, MADE FOR "RENT OF BUILDINGS AND OFFICES * * * FOR NAVAL PURPOSES," OR OTHERWISE, FOR THE LEASING BY THE NAVY DEPARTMENT OF HOTELS AND APARTMENT HOUSES IN CONGESTED AREAS FOR OCCUPANCY, ON A LOW RENTAL BASIS, BY "TRANSIENT" AND "NON-TRANSIENT" NAVAL PERSONNEL AND THEIR DEPENDENTS.

ASSISTANT COMPTROLLER GENERAL YATES TO THE SECRETARY OF THE NAVY, JULY 10, 1945:

THERE HAS BEEN CONSIDERED YOUR LETTER OF JUNE 19, 1945 (FILE N4-1 F4 3/JW), AS FOLLOWS.

THE CRITICAL HOUSING SITUATION THROUGHOUT THE UNITED STATES, AND PARTICULARLY THE COASTAL COMMUNITIES CONTIGUOUS TO NAVAL ACTIVITIES, HAS MADE IT IMPERATIVE FOR THE DEPARTMENT TO ESTABLISH HOUSING FACILITIES TO ALLEVIATE THIS CONDITION AT THOSE PLACES WHERE SUCH ACCOMMODATIONS ARE NOT AVAILABLE. THIS POLICY IS BUT A TEMPORARY EXPEDIENCY AND WILL BE DISCONTINUED AS PROMPTLY AS THE PRESENT ACUTE HOUSING SHORTAGE PERMITS. THE PRESENT ATTITUDE OF THE CONGRESS, WHICH IS CONCURRED IN BY THE DEPARTMENT, IS NOT TO CONSTRUCT NAVY HOUSING FACILITIES WHERE THEY CAN BE OTHERWISE OBTAINED THROUGH ACQUISITION OR LEASE. IN THIS REGARD ALL NAVAL LEASES ARE NOW REQUIRED TO BEAR THE APPROVAL OF THE NAVAL AFFAIRS COMMITTEES OF CONGRESS BEFORE THE LEASES ARE CONSUMMATED.

SERVICE PERSONNEL WITH DEPENDENTS OCCUPYING SUCH HOUSING ACCOMMODATIONS UNDER NAVY JURISDICTION MAY BE CLASSIFIED IN THREE CATEGORIES, AS FOLLOWS:

CATEGORY A--- TRANSIENTS, WHOSE OCCUPANCY IS RESTRICTED TO A MAXIMUM PERIOD OF SIXTY DAYS. UNDER THIS TYPE OF HOUSING IT IS PROPOSED THAT THE ACCOMMODATIONS WILL BE COMPLETELY FURNISHED WITH LIGHT HOUSEKEEPING FACILITIES EXCEPT WHERE CENTRAL MESSING FACILITIES ARE AVAILABLE. RENTAL WILL BE CHARGED FOR THE OCCUPANCY AT THE RATE OF $1.00 PER DAY FOR THE HOMOJA TYPE FACILITY, WITH A LARGER RENTAL BEING CHARGED FOR HOTEL AND APARTMENT TYPE ACCOMMODATIONS. THE RENTAL RECEIPTS FROM THE FACILITIES WILL BE DEPOSITED INTO THE TREASURY " MISCELLANEOUS RECEIPTS" EXCEPT IN THOSE INSTANCES WHERE THE HOUSING ACCOMMODATIONS (APARTMENT, HOTEL AND SIMILAR TRANSIENT ACCOMMODATIONS) ARE OPERATED UNDER A CONTRACT WITH PRIVATE INTERESTS, IN WHICH CASE THE NET RECEIPTS AFTER PAYMENT OF OPERATING EXPENSES WILL BE DEPOSITED INTO THE TREASURY " MISCELLANEOUS RECEIPTS.' THE COST OF THE LEASE WILL BE CHARGED TO THE APPROPRIATION " MAINTENANCE, BUREAU OF SUPPLIES AND ACCOUNTS," MAINTENANCE AND OPERATING COSTS CHARGED TO THE ANNUAL APPROPRIATION OF THE COGNIZANT BUREAU WHERE THE HOUSING SERVES AN ACTIVITY OF A SINGLE BUREAU AND IN ALL OTHER INSTANCES CHARGED TO THE APPROPRIATION " MAINTENANCE, BUREAU OF YARDS AND DOCKS.' IN MANY INSTANCES IT IS CONTEMPLATED THAT IT WILL NOT BE PRACTICABLE TO OPERATE THE HOUSING FACILITIES AND CHARGE RATES WHICH WILL PERMIT THE FACILITIES TO BE SELF-SUPPORTING. THIS APPLIES PARTICULARLY TO LEASED HOTELS AND APARTMENTS IN HIGH PRICED LOCALITIES SUCH AS MIAMI. ATTEMPT TO DO SO WOULD DEFEAT THE PURPOSE OF THE HOUSING ACCOMMODATIONS, THE USE OF WHICH WOULD BE LARGELY RESTRICTED TO NAVAL PERSONNEL WHO HAVE AMPLE PRIVATE INCOME. THE LATTER ARE MORE ABLE TO OBTAIN PRIVATE HOUSING THAN NAVAL PERSONNEL WHOSE ONLY INCOME IS THEIR NAVY PAY.

ON THE BASIS OF THE FOREGOING YOUR DECISION IS REQUESTED AS TO:

1. WHETHER UNDER THE ACT OF APRIL 4, 1944, PUBLIC LAW 289--- 78TH CONGRESS, SECOND SESSION, THE NAVY MAY FURNISH TO ALL NAVY PERSONNEL TRANSIENT HOUSING ACCOMMODATIONS COMPLETELY EQUIPPED WITH LIGHT HOUSEKEEPING FACILITIES EXCEPT WHERE GENERAL MESSING FACILITIES ARE AVAILABLE, AND WHETHER ALL NAVAL PERSONNEL AND THEIR DEPENDENTS MAY OCCUPY ON A RENTAL BASIS SUCH ACCOMMODATIONS FOR A MAXIMUM PERIOD OF SIXTY DAYS WITHOUT FORFEITING RENTAL OR QUARTER ALLOWANCES.

IN CONSIDERING THIS QUESTION IT IS TO BE NOTED THAT THE HEARINGS ON THE ACT OF APRIL 4, 1944 AND SUBSEQUENT APPROPRIATION ACTS INDICATE THAT THE DEPARTMENT CONTEMPLATES THAT HOUSING OF THIS KIND FOR TRANSIENTS WOULD INCLUDE ALL HOUSEKEEPING FACILITIES, SUCH AS BEDDING, LINENS, DISHES, SILVERWARE, POTS, PANS AND KITCHENWARE IN GENERAL. THIS STATEMENT WAS REPEATEDLY MADE BY THE CHIEF OF THE BUREAU OF YARDS AND DOCKS IN THE HEARINGS ON AUTHORIZATIONS AND APPROPRIATIONS FOR THIS TYPE OF HOUSING.

2. WHETHER IN THOSE INSTANCES IN WHICH THE OPERATING REVENUES DERIVED FROM THIS TYPE OF HOUSING ACCOMMODATIONS ARE NOT SUFFICIENT TO PAY ALL OPERATING EXPENSES APPROPRIATED FUNDS MAY BE USED TO PAY THE OPERATING DEFICIT.

CATEGORY B--- NON-TRANSIENTS WHO OCCUPY SO-CALLED "EMERGENCY HOUSING FACILITIES" ON A PERMANENT, SEMI-PERMANENT OR TEMPORARY BASIS. UNDER THIS TYPE OF HOUSING ACCOMMODATIONS, WHICH INCLUDES HOTELS, APARTMENTS, TRAILERS AND TEMPORARY CONSTRUCTED HOUSES ERECTED WITH PUBLIC FUNDS BUT NOT DESIGNATED OR ASSIGNED AS "PUBLIC QUARTERS," THE LENGTH OF OCCUPANCY IS INDEFINITE. THE RENTAL CHARGED WILL BE BASED UPON THE FAIR MARKET VALUE FOR THE ACCOMMODATIONS FURNISHED AND COMPARABLE TO THE RENTALS CHARGED BY THE NATIONAL HOUSING AGENCY FOR SIMILAR HOUSING AND BY THE NAVY FOR EXISTING LOW COST HOUSING. THE ACCOMMODATIONS WILL BE UNFURNISHED OR WITH MINIMUM FURNITURE INCLUDING PILLOWS AND MATTRESSES, BUT NOT INCLUDING DISHES, KITCHENWARE AND LINENS EXCEPT IN THOSE INSTANCES, PARTICULARLY IN HOTEL CONTRACT OPERATIONS, IN WHICH IT IS NECESSARY FOR THE NAVY TO FURNISH BED LINEN, TOWELS AND BLANKETS. THE COST OF THE LEASE WILL BE CHARGED TO THE APPROPRIATION " MAINTENANCE, BUREAU OF SUPPLIES AND ACCOUNTS," MAINTENANCE AND OPERATING COSTS CHARGEABLE TO THE ANNUAL APPROPRIATION OF THE COGNIZANT BUREAU WHERE THE HOUSING ACCOMMODATION SERVES AN ACTIVITY OF A SINGLE BUREAU AND IN ALL OTHER CASES CHARGED TO THE APPROPRIATION " MAINTENANCE, BUREAU OF YARDS AND DOCKS.' THE RENTAL RECEIPTS TO BE COVERED INTO THE TREASURY AS , MISCELLANEOUS RECEIPTS," EXCEPT WHERE THE HOUSING FACILITY IS OPERATED UNDER A CONTRACT WITH PRIVATE INTERESTS, IN WHICH EVENT THE NET PROFIT, IF ANY, WILL BE DEPOSITED INTO THE TREASURY AND THE NET DEFICIT, IF ANY, BE FINANCED AS HEREIN INDICATED FROM MAINTENANCE AND OPERATING COSTS.

ON THE FOREGOING STATEMENT OF FACTS YOUR DECISION IS REQUESTED AS TO:

1. WHETHER UNDER SECTION 120 OF THE ACT OF MAY 29, 1945, PUBLIC LAW 62--- 79TH CONGRESS, PERSONNEL OF THE SERVICES MENTIONED IN THE TITLE OF THE PAY READJUSTMENT ACT OF 1942 AND THEIR DEPENDENTS MAY OCCUPY ON A RENTAL BASIS EMERGENCY HOUSING FACILITIES UNFURNISHED, OR WITH MINIMUM FURNISHINGS, INCLUDING PILLOWS AND MATTRESSES BUT NOT INCLUDING DISHES AND KITCHENWARE, FOR AN INDEFINITE PERIOD OF TIME WITHOUT FORFEITING RENTAL OR QUARTER ALLOWANCES.

2. WHETHER UNDER SECTION 120 OF THE ACT OF MAY 29, 1945, PUBLIC LAW 62--- 79TH CONGRESS, PERSONNEL OF THE SERVICES MENTIONED IN THE TITLE OF THE PAY READJUSTMENT ACT OF 1942 AND THEIR DEPENDENTS MAY OCCUPY ON A RENTAL BASIS EMERGENCY HOUSING FACILITIES UNFURNISHED, OR WITH MINIMUM FURNISHINGS, INCLUDING PILLOWS AND MATTRESSES, BUT NOT INCLUDING DISHES, KITCHENWARE AND LINENS, EXCEPT IN THOSE INSTANCES, PARTICULARLY IN HOTEL CONTRACT OPERATIONS, IN WHICH IT IS NECESSARY FOR THE NAVY TO FURNISH BED LINENS, TOWELS AND BLANKETS, FOR AN INDEFINITE PERIOD OF TIME WITHOUT FORFEITING RENTAL OR QUARTER ALLOWANCES.

CATEGORY C--- PERSONNEL OCCUPYING HOUSING FACILITIES FORMING A PART OF THE TEMPORARY OR PERMANENT REGULAR NAVY ESTABLISHMENT, WHICH CAN BE PROPERLY CONSTRUED AS BEING "PUBLIC QUARTERS.' THIS TYPE OF HOUSING ACCOMMODATION WOULD BE OPERATED AS REQUIRED BY NAVY REGULATIONS, ARTICLE 1819.

AS THERE ARE SEVERAL HOUSING MATTERS PENDING, THE SOLUTION OF WHICH WILL DEPEND UPON THE ANSWERS TO THE QUESTIONS HEREIN PROPOUNDED, AN EARLY DECISION WILL BE APPRECIATED.

PUBLIC LAW 289, APPROVED APRIL 4, 1944, 58 STAT. 189, AUTHORIZES THE SECRETARY OF THE NAVY TO ESTABLISH OR DEVELOP CERTAIN NAVAL SHORE ACTIVITIES BY THE CONSTRUCTION OF SUCH TEMPORARY OR PERMANENT PUBLIC WORKS, AS HE MAY CONSIDER NECESSARY, INCLUDING BUILDINGS, FACILITIES, ACCESSORIES, AND SERVICES,"WITH APPROXIMATE COSTS AS INDICATED: * * * PERSONNEL TRAINING AND HOUSING FACILITIES, $46,579,670.' THE REPORT OF THE COMMITTEE ON NAVAL AFFAIRS, HOUSE OF REPRESENTATIVES, ACCOMPANYING H.R. 4381, WHICH BECAME PUBLIC LAW 289, CONTAINS A DETAILED BREAKDOWN OF THE ITEMS REQUESTED UNDER THE HEADING "PERSONNEL TRAINING AND HOUSING FACILITIES," BUT NO ITEM APPEARS THEREIN FOR THE CONSTRUCTION OF TEMPORARY OR EMERGENCY LOW-COST DEFENSE HOUSING FACILITIES OR OCCUPANCY ON A RENTAL BASIS BY NAVAL PERSONNEL AND THEIR DEPENDENTS. HOWEVER, PUBLIC LAW 13, APPROVED MARCH 1, 1945, 59 STAT. 9, AUTHORIZED THE APPROPRIATION OF ADDITIONAL FUNDS IN THE AMOUNT OF $40,022,000 FOR "PERSONNEL TRAINING AND HOUSING FACILITIES" AND, WHILE NO BREAKDOWN OF THE VARIOUS ITEMS APPEARS TO HAVE BEEN PUBLISHED--- SUCH INFORMATION BEING CONSIDERED CONFIDENTIAL-- - THE REPORT OF THE COMMITTEE ON NAVAL AFFAIRS, U.S. SENATE, ACCOMPANYING H.R. 626, WHICH BECAME PUBLIC LAW 13, STATES THAT A PORTION OF THE FUNDS REQUESTED WERE FOR THE PURPOSE OF CONSTRUCTING TEMPORARY OR EMERGENCY LOW- COST DEFENSE HOUSING NECESSARY FOR NAVAL PERSONNEL AND THEIR DEPENDENTS IN LOCALITIES WHERE SUFFICIENT HOUSING ACCOMMODATIONS DO NOT EXIST. THE NAVY DEPARTMENT APPROPRIATION ACT OF 1945, PUBLIC LAW 347, 58 STAT. 301, 311, THE FIRST SUPPLEMENTAL APPROPRIATION ACT, 1945, PUBLIC LAW 359, 58 STAT. 853, 867, AND THE NAVY DEPARTMENT APPROPRIATION ACT, 1946, PUBLIC LAW 62, APPROVED MAY 29, 1945, 59 STAT. 211, UNDER THE HEADING " PUBLIC WORKS, BUREAU OF YARDS AND DOCKS," EACH PROVIDED FUNDS FOR THE ACQUISITION OR CONSTRUCTION OF TEMPORARY OR EMERGENCY BUILDINGS AND FACILITIES NEEDED BY THE NAVY AND SPECIFICALLY APPROVED BY THE SECRETARY OF THE NAVY. THE LATTER APPROPRIATION ACT, WHICH IS SIMILAR TO THE 1945 APPROPRIATION ACT, PROVIDES, IN PART, AS FOLLOWS:

FOR PUBLIC WORKS AND PUBLIC UTILITIES, BUREAU OF YARDS AND DOCKS, INCLUDING THE ACQUISITION OF NECESSARY LAND, $1,589,231,400, WHICH, TOGETHER WITH THE UNEXPENDED BALANCES OF APPROPRIATION HERETOFORE MADE UNDER THIS HEAD, SHALL BE FINALLY ACCOUNTED FOR AS ONE FUND, WHICH FUND SHALL BE AVAILABLE FOR CONTINUING OR COMPLETING THE CONSTRUCTION OF ANY PROJECT HERETOFORE AUTHORIZED OR UNDERTAKEN THEREUNDER, FOR ACQUISITION OR CONSTRUCTION OF TEMPORARY OR EMERGENCY BUILDINGS AND FACILITIES AT LOCALITIES WITHIN OR WITHOUT THE UNITED STATES NEEDED BY THE NAVY AND SPECIFICALLY APPROVED BY THE SECRETARY * * *

THE SECRETARY OF THE NAVY IS AUTHORIZED, IN ACCORDANCE WITH THE PROVISIONS OF THE ACT APPROVED MARCH 1, 1945 ( PUBLIC LAW 13), TO ENTER INTO CONTRACTS FOR PUBLIC/WORKS EQUIPMENT, MATERIALS, AND CONSTRUCTION, INCLUDING COLLATERAL PUBLIC/WORK ITEMS AND THE ACQUISITION OF LAND, IN THE AMOUNT OF NOT TO EXCEED $974,008,413 * * *.

NO PART OF THE APPROPRIATIONS OR CONTRACT AUTHORIZATION IN THIS ACT UNDER THE NAVY DEPARTMENT SHALL BE USED FOR A PERMANENT TYPE OF CONSTRUCTION AT ANY SHORE ESTABLISHMENT OF ANY CHARACTER ACQUIRED SUBSEQUENT TO THE CALENDAR YEAR 1938, UNLESS SUCH ESTABLISHMENT SHALL BE DESIGNATED BY THE SECRETARY 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 MAY APPROVE: PROVIDED, THAT NOTHING HEREIN SHALL PREVENT CONSTRUCTION OF A TYPE NOW UNDER CONTRACT OR IN PROGRESS: PROVIDED FURTHER, THAT NO PART OF SUCH APPROPRIATIONS OR CONTRACT AUTHORIZATION MAY BE USED FOR THE CONSTRUCTION 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.

WHILE THE CITED APPROPRIATION ACTS DO NOT EXPRESSLY PROVIDE FOR THE CONSTRUCTION OF EMERGENCY HOUSING FACILITIES FOR NAVAL PERSONNEL AND THEIR DEPENDENTS, THE REPORTS ON THE SAID APPROPRIATION BILLS SUBMITTED TO THE CONGRESS BY THE SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS WELL AS THE HEARINGS CONDUCTED BEFORE THE SAID SUBCOMMITTEE, CLEARLY SHOW THAT A PORTION OF SUCH FUNDS WERE TO BE EXPENDED FOR THE CONSTRUCTION OF TEMPORARY OR EMERGENCY LOW-COST DEFENSE HOUSING FACILITIES IN CERTAIN LOCALITIES WHERE A SHORTAGE OF SUCH FACILITIES EXISTED FOR OCCUPANCY BY NAVAL PERSONNEL AND THEIR DEPENDENTS. IT FURTHER APPEARS THAT THERE WAS CONTEMPLATED THE CONSTRUCTION OF TWO GENERAL TYPES OF HOUSING FACILITIES FOR OCCUPANCY ON A RENTAL BASIS, NAMELY (1) TEMPORARY HOUSING SUCH AS "QUONSET" OR "1HOMOJA" HUTS FOR OCCUPANCY PRIMARILY BY PERSONNEL RETURNING FROM SEA DUTY OR OVERSEAS ASSIGNMENT AND AWAITING REASSIGNMENT, ETC., AND (2) EMERGENCY LOW-COST DEFENSE HOUSING UNITS, WITH ONE, TWO OR THREE BEDROOMS, FOR OCCUPANCY BY NAVAL PERSONNEL AND THEIR DEPENDENTS ASSIGNED TO THE PARTICULAR LOCALITY ON A PERMANENT OR SEMI-PERMANENT BASIS. IN ADDITION THERETO, IT IS UNDERSTOOD THAT THE NAVY DEPARTMENT EXERCISES JURISDICTION OVER AND OPERATES CERTAIN OTHER HOUSING PROJECTS WHICH WERE CONSTRUCTED WITH FUNDS MADE AVAILABLE UNDER SUCH ACTS AS THE ACT OF JUNE 28, 1940, 54 STAT. 681; TITLE IV OF THE NAVAL APPROPRIATION ACT FOR THE FISCAL YEAR 1941, 54 STAT. 872, 883; THE ACT OF OCTOBER 14, 1940, 54 STAT. 1125; THE URGENT DEFICIENCY APPROPRIATION ACT, 1941, 55 STAT. 14, ETC. THE ACT OF APRIL 4, 1944, SUPRA, AUTHORIZING THE CONSTRUCTION OF TEMPORARY OR PERMANENT PUBLIC WORKS AS THE SECRETARY OF THE NAVY MAY CONSIDER NECESSARY, CONTAINS A PROVISO AS FOLLOWS:

THAT EFFECTIVE DECEMBER 13, 1943, TEMPORARY HOUSING IS AUTHORIZED FOR TRANSIENT PERSONNEL OF THE NAVY, MARINE CORPS, AND COAST GUARD, WITH THEIR DEPENDENTS, ON A RENTAL BASIS, FOR PERIODS NOT EXCEEDING SIXTY DAYS, WITHOUT LOSS OF RENTAL ALLOWANCE OR MONEY ALLOWANCE FOR QUARTERS. THE FIRST SUPPLEMENTAL APPROPRIATION ACT, 1945, APPROVED DECEMBER 22, 1944, 58 STAT. 868, CONTAINED A PROVISION UNDER THE HEADING " NAVY DEPARTMENT," " GENERAL PROVISIONS," READING AS FOLLOWS:

FOR THE FISCAL YEAR 1945 AND PRIOR YEARS OCCUPANCY OF EMERGENCY HOUSING FACILITIES UNDER THE JURISDICTION OF THE NAVY DEPARTMENT OR THE NATIONAL HOUSING AGENCY, ON A RENTAL BASIS, BY PERSONNEL OF THE SERVICES MENTIONED IN THE TITLE OF THE PAY READJUSTMENT ACT OF 1942, OR BY THEIR DEPENDENTS, SHALL NOT DEPRIVE SUCH PERSONNEL OF MONEY ALLOWANCES FOR RENTAL OF QUARTERS. AN IDENTICAL PROVISION FOR THE FISCAL YEAR 1946 APPEARS IN SECTION 120 OF THE NAVAL APPROPRIATION ACT, 1946, PUBLIC LAW 62, APPROVED MAY 29, 1945, 59 STAT. 222. THEREAFTER, AND SUBSEQUENT TO YOUR PRESENT SUBMISSION, THERE WAS ENACTED PUBLIC LAW 120, APPROVED JULY 2, 1945, 59 STAT. 316, WHICH READS AS FOLLOWS:

THAT NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW (INCLUDING ANY LAWS RESTRICTING THE OCCUPANCY OF HOUSING FACILITIES UNDER THE JURISDICTION OF GOVERNMENT DEPARTMENTS OR AGENCIES BY PERSONNEL, AND DEPENDENTS OF PERSONNEL, OF THE ARMY, NAVY, MARINE CORPS, AND COAST GUARD ABOVE SPECIFIED RANKS, OR BY PERSONNEL, AND DEPENDENTS OF PERSONNEL OF THE COAST AND GEODETIC SURVEY AND THE PUBLIC HEALTH SERVICE), PERSONNEL OF ANY OF THE SERVICES MENTIONED HEREIN AND THEIR DEPENDENTS MAY BE ACCEPTED AS TENANTS IN AND MAY OCCUPY ON A RENTAL BASIS ANY SUCH HOUSING FACILITIES, OTHER THAN PUBLIC QUARTERS CONSTRUCTED OR DESIGNATED FOR ASSIGNMENT TO AND OCCUPANCY WITHOUT CHARGE BY SUCH PERSONNEL AND THEIR DEPENDENTS IF ANY, AND SUCH PERSONNEL SHALL NOT BE DEPRIVED BY REASON OF SUCH OCCUPANCY OF MONEY ALLOWANCES TO WHICH THEY ARE OTHERWISE ENTITLED FOR RENTAL OF QUARTERS.

THE EVIDENT PURPOSE OF THE LATTER STATUTE, WHICH IS PERMANENT LEGISLATION, IS TO PERMIT MILITARY AND NAVAL PERSONNEL--- IRRESPECTIVE OF RANK OR GRADE--- AND THEIR DEPENDENTS TO OCCUPY INDEFINITELY ON A RENTAL BASIS TEMPORARY OR EMERGENCY HOUSING FACILITIES--- OTHER THAN "PUBLIC QUARTERS"--- UNDER THE JURISDICTION OF ANY GOVERNMENT DEPARTMENT OR AGENCY, WITHOUT LOSS OF OTHERWISE PROPER RENTAL ALLOWANCE OR MONETARY ALLOWANCE IN LIEU OF QUARTERS. THE SAID STATUTE APPEARS CLEARLY TO SUPERSEDE PRIOR LEGISLATION ON THE SUBJECT, INCLUDING THE PROVISION IN THE ACT OF APRIL 4, 1944, SUPRA, PERMITTING TRANSIENT NAVAL PERSONNEL AND THEIR DEPENDENTS TO OCCUPY TEMPORARY HOUSING ON A RENTAL BASIS "FOR PERIODS NOT EXCEEDING SIXTY DAYS," WITHOUT LOSS OF RENTAL ALLOWANCE OR MONEY ALLOWANCE FOR QUARTERS. THAT IS TO SAY, ALTHOUGH TRANSIENT NAVAL PERSONNEL AND THEIR DEPENDENTS MAY BE PERMITTED ADMINISTRATIVELY TO OCCUPY TEMPORARY HOUSING FACILITIES, SUCH AS "QUONSET" OR ,1HOMOJA" HUTS, ON A RENTAL BASIS, FOR PERIODS EXCEEDING SIXTY DAYS, THE SAID STATUTE PRECLUDES THE FORFEITING OF OTHERWISE PROPER RENTAL OR QUARTERS ALLOWANCES BECAUSE OF SUCH OCCUPANCY. THE SAME RULE WOULD APPLY IN THE CASE OF "NON- TRANSIENT" NAVAL PERSONNEL AND THEIR DEPENDENTS WHO OCCUPY LOW-COST DEFENSE HOUSING UNITS ON A RENTAL BASIS, WITHOUT REGARD TO RANK OR GRADE AND IRRESPECTIVE OF WHETHER SUCH OCCUPANCY MIGHT BE ON A PERMANENT, SEMIPERMANENT OR TEMPORARY BASIS. BUT, OF COURSE, UNDER THE EXPRESS PROVISIONS OF THE SAID ACT, NAVAL PERSONNEL AND THEIR DEPENDENTS OCCUPYING "PUBLIC QUARTERS CONSTRUCTED OR DESIGNATED FOR ASSIGNMENT TO AND OCCUPANCY WITHOUT CHARGE BY SUCH PERSONNEL AND THEIR DEPENDENTS IF ANY," MUST BE REGARDED AS HAVING BEEN PROVIDED WITH PUBLIC QUARTERS SO AS TO PRECLUDE PAYMENT TO THEM OF RENTAL OR MONETARY ALLOWANCE DURING THE PERIOD OF SUCH OCCUPANCY.

THE NAVAL APPROPRIATION ACTS FOR 1945 AND 1946, 58 STAT. 306; 59 ID. 206, LIKE THOSE FOR PRIOR YEARS, CONTAIN THE FOLLOWING PROVISO UNDER " MAINTENANCE, BUREAU OF SHOPS.'

* * * PROVIDED, THAT NO PART OF THIS OR ANY OTHER APPROPRIATION CONTAINED IN THIS ACT SHALL BE AVAILABLE FOR OR ON ACCOUNT OF THE SUPPLY OR REPLACEMENT OF TABLE LINEN, DISHES, GLASSWARE, SILVER, AND KITCHEN UTENSILS FOR USE IN THE RESIDENCES OR QUARTERS OF OFFICERS ON SHORE, EXCEPT FOR MESSES TEMPORARILY SET UP ON SHORE FOR BACHELOR OFFICERS AND OFFICERS ATTACHED TO SEAGOING OR DISTRICT DEFENSE VESSELS, TO AVIATION UNITS BASED ON SEAGOING VESSELS, TO THE FLEET AIR BASES, TO THE SUBMARINE BASES, OR TO LANDING FORCES AND EXPEDITIONS.

THE SAID NAVAL APPROPRIATION ACTS FOR 1945 AND 1946, AND THE FIRST SUPPLEMENTAL APPROPRIATION ACT OF 1945, PROVIDING FUNDS, INTER ALIA, FOR THE CONTEMPLATED CONSTRUCTION OF TEMPORARY OR EMERGENCY HOUSING FACILITIES, CONTAIN NO EXPRESS PROVISION RESPECTING THE HOUSEKEEPING EQUIPMENT TO BE FURNISHED NAVAL PERSONNEL AND THEIR DEPENDENTS OCCUPYING SUCH TEMPORARY OR EMERGENCY HOUSING FACILITIES ON A RENTAL BASIS. HOWEVER, THE HEARINGS BEFORE THE SUBCOMMITTEE, COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, ON THE FIRST SUPPLEMENTAL APPROPRIATION ACT, 1945, AND THE NAVY DEPARTMENT APPROPRIATION ACT, 1946, CLEARLY SHOW THAT IT WAS CONTEMPLATED THAT TEMPORARY HOUSING FACILITIES, SUCH AS "QUONSET" OR "1HOMOJA" HUTS AUTHORIZED FOR TRANSIENT NAVAL PERSONNEL AND THEIR DEPENDENTS WERE TO BE COMPLETELY FURNISHED--- THE PRIMARY PURPOSE OF SUCH HUTS BEING TO PERMIT NAVAL PERSONNEL TO VISIT WITH THEIR FAMILIES DURING SHORT PERIODS PENDING RETURN TO SEA DUTY, ETC. MOREOVER, THE JUSTIFICATION SUBMITTED TO THE APPROPRIATION COMMITTEE ON THE NAVAL APPROPRIATION ACT OF 1946 CONTAINS A BREAKDOWN OF THE UNIT COST OF SUCH HUTS AND IT INCLUDES AN ITEM OF $400 FOR "FURNITURE" WHICH WAS EXPLAINED AS INCLUDING "FURNITURE, KITCHEN GEAR, BEDDING AND UTENSILS.' SEE HEARING ON NAVY DEPARTMENT APPROPRIATION BILL, 1946, PART 2, PAGES 222 -224. WITH RESPECT TO THE FURNISHING OF LOW-COST DEFENSE HOUSING PROJECTS CONSTRUCTED WITH FUNDS APPROPRIATED TO THE NAVY DEPARTMENT FOR SUCH PURPOSES, THE HEARINGS BEFORE THE SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES (PART 2, PAGE 229) ON THE 1946 APPROPRIATION BILL, INDICATE THAT THE COST OF EACH FAMILY UNIT WAS ESTIMATED AT APPROXIMATELY $3,800, CONSISTING OF (1) CLEARING, GRADING, ROADS, WALKS, SERVICES, ACQUISITION OF LAND WHERE NECESSARY, $600; (2) CONSTRUCTION OF BUILDING, $2,600; (3) COLLATERAL EQUIPMENT $600. THE SAID HEARINGS FURTHER INDICATE (PAGE 231) THAT, WHILE THE QUONSET OR HOMOJA HUTS FOR TRANSIENT NAVAL PERSONNEL AND THEIR DEPENDENTS WERE TO BE COMPLETELY FURNISHED, THE LOW-COST DEFENSE HOUSING PROJECTS--- CONSTRUCTED PRIMARILY FOR NAVAL PERSONNEL AND THEIR DEPENDENTS PERMANENTLY ASSIGNED AT A PARTICULAR STATION--- WERE TO BE EQUIPPED WITH "JUST THE BARE MINIMUM OF LIVING FURNITURE--- NO BEDDING, NO POTS, NO PANS, NO DISHES, NO TOWELS.' IT THUS APPEARS THAT THE ESTIMATE INCLUDED A LIMITED AMOUNT UNDER THE ITEM "COLLATERAL EQUIPMENT" TO PROVIDE FOR CERTAIN ITEMS OF FURNITURE FOR LOW- COST DEFENSE HOUSING UNITS. IN VIEW OF THESE CIRCUMSTANCES, THE CONCLUSION APPEARS WARRANTED THAT THE PROHIBITION, SUPRA, AGAINST THE USE OF APPROPRIATIONS FOR THE SUPPLYING OR REPLACEMENT OF TABLE LINEN, DISHES, GLASSWARE, SILVER AND KITCHEN UTENSILS FOR USE IN "THE RESIDENCES OR QUARTERS OF OFFICERS ON SHORE" HAD REFERENCE PRIMARILY TO ASSIGNED PUBLIC QUARTERS AND WAS NOT INTENDED TO EXTEND TO EMERGENCY HOUSING FACILITIES TO BE RENTED TO NAVAL PERSONNEL. ON THAT BASIS, THE PROPOSED POLICY WITH RESPECT TO PROVIDING CERTAIN FURNISHINGS AND HOUSEKEEPING ESSENTIALS IN CONNECTION WITH THE CONSTRUCTION AND RENTAL OF SUCH HOUSING FACILITIES DOES NOT APPEAR TO BE CONTRARY TO LAW.

SECTION 119 OF THE NAVAL APPROPRIATION ACT, 1945, 58 STAT. 322, PROVIDES AS FOLLOWS:

NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, ALL SPECIAL FUND RECEIPT ACCOUNTS AND SPECIAL FUND APPROPRIATION ACCOUNTS ESTABLISHED FOR HOUSING PROJECTS WHICH ARE MAINTAINED AND OPERATED AS SUCH BY THE NAVY DEPARTMENT AND DEVELOPED UNDER THE PROVISIONS OF THE ACTS OF JUNE 28, 1940 (54 STAT. 676); SEPTEMBER 9, 1940 (54 STAT. 872); OCTOBER 14, 1940 (54 STAT. 1125); MARCH 1, 1941 (55 STAT. 14); MAY 24, 1941 (55 STAT. 197); AND DECEMBER 17, 1941 (55 STAT. 810), ARE ABOLISHED AS OF JUNE 30, 1944, AND ALL UNOBLIGATED MONEYS THEN ON HAND OR THEREAFTER DERIVED FROM THE RENTAL OR OPERATION OF SUCH HOUSING PROJECTS SHALL BE COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS.

THE FUNDS PROVIDED UNDER THE VARIOUS ACTS CITED IN THE SAID SECTION 119, FOR TEMPORARY AND EMERGENCY LOW-COST DEFENSE HOUSING, WERE ALLOCATED TO VARIOUS DEPARTMENTS AND AGENCIES--- INCLUDING THE NAVY DEPARTMENT--- FOR THE CONSTRUCTION OF LOW-COST DEFENSE HOUSING PROJECTS IN CERTAIN AREAS WHERE A SHORTAGE OF HOUSING ACCOMMODATIONS EXISTED; AND THE RENTAL RECEIPTS DERIVED FROM THE OPERATION OF SUCH PROJECTS WERE AUTHORIZED TO BE USED IN CONNECTION WITH THE OPERATION AND MAINTENANCE OF SUCH PROJECTS. SEE SECTION 201, ACT OF SEPTEMBER 9, 1940, 54 STAT. 883, 884, AND SECTION 6 OF THE ACT OF OCTOBER 14, 1940, 54 STAT. 1127. ALSO 55 STAT. 15; ID. 198; ID. 818. THE OBVIOUS PURPOSE OF SECTION 119, SUPRA, WAS TO CONSOLIDATE INTO ONE FUND ALL APPROPRIATED FUNDS ALLOCATED TO THE NAVY DEPARTMENT UNDER THOSE ACTS AND TO REQUIRE THAT ALL RECEIPTS DERIVED FROM THE RENTAL OR OPERATION OF SUCH PROJECTS BE COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS. THE PROVISIONS OF SAID SECTION 119 APPEAR TO BE DIRECTED ONLY TO HOUSING PROJECTS CONSTRUCTED WITH FUNDS ALLOCATED TO THE NAVY DEPARTMENT FROM THE ACTS CITED THEREIN; AND WHILE NO MENTION IS MADE OF HOUSING PROJECTS CONSTRUCTED WITH FUNDS APPROPRIATED DIRECTLY TO THE NAVY DEPARTMENT FOR SUCH PURPOSE, THE GENERAL LAW APPLICABLE IN SUCH CASES WOULD REQUIRE ALL RECEIPTS DERIVED FROM THE OPERATION OF SUCH PROJECTS TO BE COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS IN THE ABSENCE OF EXPRESS STATUTORY AUTHORITY OTHERWISE. SEE SECTIONS 3617 AND 3618, REVISED STATUTES; 10 COMP. GEN. 382; 15 ID. 352; 20 ID. 280; 21 ID. 880; 23 ID. 986. THAT SUCH REQUIREMENTS MAY NOT BE AVOIDED BY USING MANAGEMENT CONTRACTS, SEE 15 COMP. GEN. 352.

AS TO THE MATTER OF THE APPROPRIATION CHARGEABLE WITH THE MAINTENANCE AND OPERATING COST OF TEMPORARY AND EMERGENCY LOW-COST DEFENSE HOUSING PROJECTS UNDER THE CONTROL AND JURISDICTION OF THE NAVY DEPARTMENT, THE NAVAL APPROPRIATION ACT, 1946, UNDER THE HEADING " MAINTENANCE, BUREAU OF YARDS AND DOCKS," PROVIDES, IN PERTINENT PART, AS FOLLOWS.

FOR THE LABOR, MATERIALS, SUPPLIES, AND FACILITIES NECESSARY FOR THE GENERAL MAINTENANCE OF ACTIVITIES AND PROPERTIES UNDER THE COGNIZANCE OF THE BUREAU OF YARDS AND DOCKS * * * FOR EXPENSES OF OPERATION AND MAINTENANCE OF HOUSING PROJECTS MAINTAINED AND OPERATED AS SUCH BY THE NAVY DEPARTMENT AND DEVELOPED UNDER THE PROVISIONS OF THE ACTS OF JUNE 28, 1940 (54 STAT. 676); SEPTEMBER 9, 1940 (54 STAT. 872); OCTOBER 14, 1940 (54 STAT. 1125); MARCH 1, 1941 (55 STAT. 14); MAY 24, 1941 (55 STAT. 197); AND DECEMBER 17, 1941 (55 STAT. 810), INCLUDING UTILITIES, ROADS, WALKS, AND ACCESSORIES, AND EXPENSES FOUND NECESSARY IN THE DISPOSITION OF ANY SUCH PROPERTY OR THE REMOVAL OF TEMPORARY HOUSING, $6,000,000 * * *. SEE, ALSO, THE SIMILAR PROVISION IN THE NAVAL APPROPRIATION ACT, 1945, 58 STAT. 310.

IT THUS APPEARS THAT SINCE THE RECEIPTS DERIVED FROM THE OPERATION OF TEMPORARY OR EMERGENCY HOUSING FACILITIES CONSTRUCTED WITH FUNDS ALLOCATED TO THE NAVY DEPARTMENT UNDER THE VARIOUS ACTS CITED NOW ARE REQUIRED BY THE PROVISIONS OF THE NAVAL APPROPRIATION ACT, 1945, SUPRA, TO BE COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS, FUNDS HAVE BEEN APPROPRIATED SPECIFICALLY IN THE ANNUAL APPROPRIATION ACTS FOR THE MAINTENANCE AND OPERATION OF SUCH PROJECTS. HOWEVER, IT IS UNDERSTOOD THAT IN ADDITION TO SUCH PROJECTS ALL TEMPORARY AND EMERGENCY NAVAL HOUSING--- INCLUDING SUCH HOUSING CONSTRUCTED WITH FUNDS APPROPRIATED DIRECTLY TO THE NAVY DEPARTMENT--- ARE UNDER THE COGNIZANCE OF THE BUREAU OF YARDS AND DOCKS. ON SUCH BASIS, THE APPROPRIATION " MAINTENANCE, BUREAU OF YARDS AND DOCKS" IS REGARDED AS EXCLUSIVELY AVAILABLE FOR THE MAINTENANCE AND OPERATING COSTS OF ALL SUCH HOUSING.

IN ADDITION TO THE CONSTRUCTION AND RENTING OF SUCH EMERGENCY HOUSING AS AUTHORIZED BY THE CONGRESS, IT APPEARS FROM YOUR LETTER THAT THE NAVY DEPARTMENT CONTEMPLATES THE LEASING OF CERTAIN HOTELS AND APARTMENT HOUSES IN CONGESTED AREAS FOR OCCUPANCY, ON A LOW RENTAL BASIS, BY "TRANSIENT" AND "NON-TRANSIENT" NAVAL PERSONNEL AND THEIR DEPENDENTS WHILE CONTINUING TO PAY SUCH PERSONNEL THEIR STATUTORY RENTAL AND QUARTERS ALLOWANCES; THAT IT IS PROPOSED TO CHARGE THE COST OF SUCH LEASES TO " MAINTENANCE, BUREAU OF SUPPLIES AND ACCOUNTS; " THAT THE RENTAL RECEIPTS DERIVED FROM THE OPERATION OF SUCH LEASED HOTELS, ETC., UNDER CONTRACTS WITH PRIVATE INTERESTS WOULD BE USED TO DEFRAY THE MAINTENANCE AND OPERATING EXPENSES TO THE EXTENT AVAILABLE, THE NET OPERATING DEFICIT TO BE CHARGED TO THE ANNUAL APPROPRIATION OF THE COGNIZANT BUREAU, WHERE THE HOTEL OR APARTMENT FACILITIES SERVE "AN ACTIVITY OF A SINGLE BUREAU," AND IN OTHER CASES TO THE APPROPRIATION " MAINTENANCE, BUREAU OF YARDS AND DOCKS; " AND THAT THE NET OPERATING PROFIT, IF ANY, WOULD BE COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS. THE MATTER HAS BEEN GIVEN CAREFUL CONSIDERATION, BUT NO SUFFICIENT LEGISLATIVE AUTHORITY FOR SUCH LEASES AND OPERATIONS HAS BEEN FOUND. THE NAVAL APPROPRIATION ACTS OF 1945 AND 1946, 58 STAT. 309; 59 ID. 209, UNDER THE HEADING " MAINTENANCE, BUREAU OF SUPPLIES AND ACCOUNTS," TO WHICH IT IS PROPOSED TO CHARGE THE ENTIRE COST OF SUCH LEASES, PROVIDE, IN PERTINENT PART, AS FOLLOWS:

* * * RENT OF BUILDINGS AND OFFICES NOT IN NAVY YARDS FOR NAVAL PURPOSES, NOT OTHERWISE PROVIDED FOR, AND FOR OTHER GOVERNMENT AGENCIES AS NECESSITATED BY THEIR VACATION OF GOVERNMENT-OWNED PROPERTY FOR NAVAL USE

THE SAME APPROPRIATION ACTS, 58 STAT. 307; 59 ID. 207, UNDER THE HEADING " BUREAU OF SUPPLIES AND ACCOUNTS," " PAY AND SUBSISTENCE OF NAVAL PERSONNEL," PROVIDE, IN PERTINENT PART, AS FOLLOWS:

* * * HIRE OF QUARTERS FOR OFFICERS SERVING WITH TROOPS WHERE SUFFICIENT QUARTERS ARE NOT POSSESSED BY THE UNITED STATES TO ACCOMMODATE THEM * * * AND HIRE OF QUARTERS FOR NAVAL PERSONNEL, COMPARABLE TO QUARTERS ASSIGNABLE ON A CAPITAL SHIP, AS AUTHORIZED BY THE SECRETARY TO MEET EMERGENCY CONDITIONS, INCLUDING OFFICERS AND MEN ON SEA DUTY AT SUCH TIMES AS THEY MAY BE DEPRIVED OF THEIR QUARTERS ON BOARD SHIP DUE TO REPAIRS OR OTHER CONDITIONS WHICH MAY RENDER THEM UNINHABITABLE: PROVIDED, THAT UNDER THIS AUTHORIZATION NO FUNDS MAY BE EXPENDED FOR THE HIRE OF QUARTERS FOR OCCUPANCY BY THE DEPENDENTS OF OFFICERS OR ENLISTED PERSONNEL * * *. ( ITALICS SUPPLIED.) IT WOULD APPEAR TO BE THE ADMINISTRATIVE VIEW, NOTWITHSTANDING SUCH PROHIBITION AGAINST RENTING QUARTERS FOR DEPENDENTS, THAT THE PROVISION UNDER THE APPROPRIATION " MAINTENANCE, BUREAU OF SUPPLIES AND ACCOUNTS" FOR "RENT OF BUILDINGS AND OFFICES NOT IN NAVY YARDS FOR NAVAL PURPOSES, NOT OTHERWISE PROVIDED FOR," IS SUFFICIENTLY BROAD TO INCLUDE THE RENTAL OF BUILDINGS TO BE SUB-LET TO NAVAL PERSONNEL AND THEIR DEPENDENTS. WHILE THE SAID APPROPRIATION HAS BEEN REGARDED AS AVAILABLE FOR THE RENT OF A BUILDING TO BE USED AS A BARRACKS FOR ENLISTED NAVAL PERSONNEL, IN LIEU OF PAYING THEM A QUARTERS ALLOWANCE (B-31964, MARCH 20, 1943), IT DOES NOT FOLLOW THAT THE SAID APPROPRIATION IS AVAILABLE FOR THE LEASING OF HOTELS AND APARTMENTS BY THE NAVY DEPARTMENT TO BE RENTED OUT TO NAVAL PERSONNEL AND THEIR DEPENDENTS IN RECEIPT OF THEIR STATUTORY RENTAL OR QUARTERS ALLOWANCES. WHILE THE RENTAL OF BUILDINGS TO PROVIDE NECESSARY QUARTERS OR SHELTER FOR NAVAL PERSONNEL ON ACTIVE DUTY CLEARLY WOULD APPEAR TO BE "FOR NAVAL PURPOSES" IT IS AT LEAST TO BE SERIOUSLY DOUBTED THAT THE LEASING OF BUILDINGS TO PROVIDE LOW-COST HOTEL AND APARTMENT ACCOMMODATIONS FOR NAVAL PERSONNEL AND THEIR DEPENDENTS PROPERLY COULD BE CONSIDERED AS THE RENT OF BUILDINGS "FOR NAVAL PURPOSES," WITHIN THE CONTEMPLATION OF THE SAID PROVISION. ON THE CONTRARY, SUCH PROVISION APPEARS PRIMARILY TO HAVE REFERENCE TO THE LEASING OF BUILDINGS FOR USE AS WAREHOUSES, OFFICE SPACE, STORAGE FACILITIES, AND OTHER FACILITIES NECESSARY IN CONNECTION WITH THE SUPPLYING OF THE FLEET AND SHORE ESTABLISHMENTS. IN ANY EVENT, NOTHING IS FOUND IN THE SAID APPROPRIATION ACTS, OR IN THE HEARINGS OR REPORTS THEREON, WHICH REMOTELY SUGGESTS THAT IT WAS EVER CONTEMPLATED THAT THE SAID APPROPRIATION WOULD BE AVAILABLE FOR THE COST OF LEASING HOTELS AND APARTMENTS FOR THE PURPOSE OF RENTING SUCH ACCOMMODATIONS TO PERSONNEL AND THEIR DEPENDENTS UNDER THE CONDITIONS SUGGESTED NOR DOES THERE APPEAR TO BE ANY APPROPRIATION AVAILABLE TO PROCURE THE FURNITURE, FURNISHINGS AND EQUIPMENT TO INITIATE AND CONTINUE SUCH RENTING OPERATIONS.

THE FACT THAT FUNDS HAVE BEEN MADE AVAILABLE UNDER OTHER APPROPRIATIONS FOR THE CONSTRUCTION OF TEMPORARY EMERGENCY HOUSING FACILITIES IN CONGESTED AREAS WHICH MAY BE OCCUPIED BY NAVAL PERSONNEL AND THEIR DEPENDENTS ON A RENTAL BASIS DOES NOT ESTABLISH A LEGISLATIVE INTENT TO AUTHORIZE THE NAVY TO LEASE EXISTING HOTELS AND APARTMENTS IN SUCH AREAS FOR THAT PURPOSE. IT IS ONE MATTER TO CONSTRUCT TEMPORARY FACILITIES IN SUCH AREAS TO RELIEVE THE CONGESTION, AND, OBVIOUSLY, AN ENTIRELY DIFFERENT MATTER FOR THE NAVY DEPARTMENT TO PREEMPT EXISTING HOTELS AND APARTMENTS IN SUCH CONGESTED AREAS FOR THE LOW-COST ACCOMMODATION OF NAVY DEPENDENTS--- TO THE EXCLUSION OF OTHER SERVICE PERSONNEL AND PERSONS WORKING OR HAVING BUSINESS AND REQUIRED TO LIVE IN SUCH AREAS--- THUS AGGRAVATING THE CONDITION WHICH THE PROVISIONS FOR THE CONSTRUCTION OF TEMPORARY HOUSING WERE INTENDED TO AMELIORATE. IN THE ACT OF NOVEMBER 28, 1943, 57 STAT. 593, THE CONGRESS MADE PROVISION FOR FURNISHING TRANSPORTATION FOR THE DEPENDENTS AND HOUSEHOLD GOODS OF NAVAL PERSONNEL TO ANY POINTS IN THE UNITED STATES WHICH THEY MIGHT SELECT FOR THE PURPOSE OF RELIEVING CONGESTION IN THE VICINITY OF NAVAL ACTIVITIES. THE FURNISHING OF LOW-COST HOTEL AND APARTMENT ACCOMMODATIONS FOR SUCH DEPENDENTS, INCREASING THE CONGESTION IN THOSE AREAS, WOULD APPEAR TO BE CLEARLY CONTRARY TO THE LEGISLATIVE POLICY THERE INDICATED. FOR SUCH REASONS, AND IN THE ABSENCE OF AFFIRMATIVE ACTION BY THE CONGRESS ON THE MATTER, THIS OFFICE IS UNABLE TO CONCLUDE THAT THERE IS LEGAL AUTHORITY FOR THE PROPOSED OPERATIONS IN THAT RESPECT.

WHILE THE ENACTMENT OF PUBLIC LAW 120, APPROVED JULY 2, 1945, AND THE MANNER IN WHICH THE SPECIFIC QUESTIONS IN YOUR LETTERS ARE STATED PRECLUDE CATEGORICAL ANSWERS, I BELIEVE WHAT HAS BEEN SAID HEREIN WILL FURNISH COMPLETE ANSWERS TO THE VARIOUS QUESTIONS INVOLVED.