stantial economies in volume production, but many 

 producers have been unwilling to gear up for an 

 uncharted market. 



Through this demonstration, HUD, in coopera- 

 tion with ERDA, is attempting to stimulate that 

 market, to provide incentives to both producers 

 and consumers, and to define standards of quality 

 and performance. The very size of the demonstra- 

 tion (more than 6,000 dwelling units) has given 

 impetus to the market. The demonstration is also 

 providing an opportunity to examine related issues 

 in real-life settings. What should a solar owner's 

 "sun rights"" be, and how may they be assured 

 against encroachment by others? Who installs the 

 solar system? Who services it? What code re- 

 quirements should apply? Can lenders be induced 

 to recognize that higher first costs will be partially 

 or totally offset by lower operating costs, and thus 

 should justify higher loans? 



Significant Opportunities for Future 

 Research 



HUD's current highest priorities for research are 

 the following subjects: 



• Reasons for the rise in the costs of housing, 

 and means of controlling it 



• Alternative mechanisms for financing subsi- 

 dized housing to encourage better mainte- 

 nance 



• Ways to assist older cities in their economic 

 development and financial problems 



• New approaches to providing for the housing 

 needs of the elderly and handicapped 



• Neighborhood reinvestment and revitalization 



• Development of procedure for selecting sites 

 for subsidized housing and, more generally, 

 for fostering stable racial and economic inte- 

 gration. 



HUD is a young agency. Its research program is 

 even younger. Much of its research lies in areas 

 not previously well investigated, and progress re- 

 lies upon diverse disciplines not yet well integrat- 

 ed. The opportunities for further work are broad. 

 The needs are great, particularly in developing 

 greater understanding of the fundamental process- 

 es with which we are dealing. 



Whether any substantial additional resources 

 can be devoted to such work in the near term, due 

 to the press of more immediate concerns, remains 

 in question. 



There is no question, however, that much re- 

 mains to be done. Questions still exist as basic as: 

 "How can we predict the effects of various kinds 

 of changes on our communities?"" "Is the ancient 



role of cities as mothers of commerce, culture, and 

 innovation undergoing eclipse as a result of ad- 

 vances in communication, transportation, and other 

 technology?" "Are growth, decay, and other or- 

 ganic descriptions actually appropriate for the pro- 

 cesses at work in communities?"" (If "grow or die" 

 does apply, the consequences are very far reach- 

 ing.) 



The true role and value of housing in our lives 

 also remains under question. It has long been 

 argued by housing advocates that it is one of the 

 "merit goods" (a product or service having such 

 merit or value to the community that it deserves 

 support or funding by the community above the 

 value individual users might place on the product). 

 It has been argued that the provision of safe, 

 sound, and decent housing leads to many broad 

 benefits for its occupants, or that its absence is 

 detrimental. 



The bulk of studies done to date olTer little con- 

 clusive support for such arguments. This has given 

 opponents of special treatment for housing some 

 comfort. It would be equally fair to state that those 

 studies also offer little basis to refute "merit 

 good" arguments. In many cases, it will take large- 

 scale, long-term, carefully controlled studies to 

 settle these arguments. Such studies remain as yet 

 undone in the housing field. 



Many other value judgments about housing and 

 community aiTairs are accepted intuitively but 

 remain unproven in any rigorous way. The values 

 of owning a home are the basis for multibillion dol- 

 lar programs. For example, the benefits of income 

 tax deductions for property taxes and mortgage 

 interest now exceed $15 billion annually. Home- 

 ownership is thought to provide better and more 

 stable citizens by giving them a "stake" in the 

 community. It probably does, but it has yet to be 

 carefully documented. 



Our equal opportunity goals call for HUD pro- 

 jects to be broadly mixed socially, racially, and by 

 income level. The broad mix meets egalitarian 

 ideals. It is said to provide role models for upward 

 mobility and better representation in community 

 alTairs for the less fortunate, and to provide a 

 broadening environment for the more fortunate. It 

 is likely that such benefits occur, but no studies 

 exist that conclusively show this to be true. 



We are heavily committed to neighborhood pres- 

 ervation and revitalization, but we do not know 

 whether current modes of intervention may have 

 unwanted side effects, such as the family reloca- 

 tion problems and small business disruption that 

 affected earlier renewal efforts. 



General revenue sharing and special purpose 

 block grant programs have removed many of the 

 Federal controls on community use of Federal 

 funds, in an attempt to restore the decisionmaking 



HOUSING AND URBAN DEVELOPMENT 121 



