CONFIDENTIAL

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estates to such families;

this older housing naturally commands much lower rents, and it seems sensible to the Authority to use its whole housing stock in this flexible way. At the same time, the better-off families (or those which place a higher value on newer, more spacious housing) enjoy a transfer from their present usually very overcrowded units to a new environment. If this is not possible then rent allowances are available to those who qualify for Public Assistance. I must add that we are not entirely satisfied with this situation (though it does for the present assure housing for everyone within his means) and are looking at the longer-term implications. Mrs. Elliott has opposed these rent levels in the Housing Authority, but her suggested alternative of lowering standards is quite unacceptable.

Turning now to her complaints about shortages of licensed areas, Mrs. Elliott tries to give the impression that not enough is being done to provide this form of temporary housing for families which are genuinely homeless. These use large amounts of land, and the pace of the construction programme is largely dictated by the availability of sites which will not be required for permanent development for 4 years or so. Subject to this restriction, as well as constraints imposed by staff capacity, given the 18 months stoppage of staff recruitment, the Authority has done very well in building greatly improved Licensed Areas for about 30,000 persons during 1974/76, and in 1976/77 it expects to house another 19,000 to these new higher standards. Looking ahead, we hope to build 13 more Licensed Areas next year, for about 29,000 people to hold the line until such time as we have a sufficient production of new housing to meet all current needs and to clear the Licensed Areas. We increase Licensed Area availability from time to time by moving the oldest Licensed Area occupants into permanent public housing, and by this means we hold down the total numbers of persons living in these areas. For example, there is at present a temporary shortage of Licensed Area space, because completion dates seldom fit in with demand, and there are about 2,000 persons eligible and waiting for Licensed Area space, half of them accommodated in Transit Centres, which should be used strictly for short-term emergency accommodation by persons en route to public housing or Licensed Areas; unfortunately some families have to spend months in these Centres despite our best efforts to avoid this. To clear this back-log the Authority is currently considering a further Licensed Area turnover exercise, releasing space for 600 families by moving that number of families into

public housing.

CONFIDENTIAL

/This 1977...

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