Evening star., 1946-04-14
Expected
To End LoophoIe
On. GI Homes
Materials Drain Seen
If Veteran Builds at
Price Above $4,000
By Robert J. Lewis

A veteran who plans to build q
home for his own occupancy could
now 60 ahead without regard to the
$4,000 price ceiling under present
Government regulations, but Hous-
ing Administrator Wilson w. Wyatt
is expected within few days to plug
this loophole in the rules, it was
learned last night.
The housing administrator will
take this action, it was indicated. to
safeguard the Veterans Emergency
Housing Program from what was
described as the possibility of con-
siderable damage"
Unless the step is taken, veteran
building for his own occupancy
could spend any amount he wishes,
whereas speculative builder is re-
stricted to $4,000 ceiling price.
Drain on Material Feared.
While specifically imposing the
ceiling price limitation on dwellings
undertaken by builders, amend
ments issued this week by the Ci-
william Production Administration to
its building materials priorities regu-
lation omitted reference to a CELL
ing price on homes to be built by
veterans for their own occupancy.
AS result, the way is open to
evasion of the ceiling limitation, it
was pointed out. The possibility that
unless action was taken, wide
spread evasion might drain away
building materials needed to fulfill
the 2,700,000 home program was un-
derstood to have given Mr. Wyatt
and his associates considerable con-
cern recently. /;
Builders who preferred to build
homes in the $4,000 to $25 900 class.
for example, could seek out veterans
interested in buying dwellings in that
price range and then request the
veteran himself to apply for authors
zation to build, it was explained.
Conflict on Legislation.
Behind CPA's failure to specify
that the $4,000 ceiling applied to
veterans building for ther own oc.
cupancy was understood to be leg
lslative provision of the Independent
Offices Appropriation Act of ls4S
about which there has been a conflict
OF Interpretation among Govern
ment attorneys.
The legislation provides that "any
department or agency of the Cow
ernment, in allocating or granting
prlorities with respect to, any ma
terials, shall give" to veterans "a
preference over all other users of
sucn materials Except to the ex-
tent such materials are needed by
such other users to meet actual mill
tary needs, without requiring any
showing of hardship or other neces.
SHY Tor the construction, alteration
or repair OF such dwelling houses"
Under an earlier Interpretation. it
! was said, CPA granted a limited
number OF priorities for materials
gong into housing costing more than
SiO,0O0. per unit. Now. however
CPA's priority functions on housing
nave been transferred to the Federal
-~~AAAS III.
Forthcoming Directive.
Under the forthcoming Wyatt d.
fectlve, 1t was explained, FHA will
be requested not to issue authorize
lions to build or grant priorities on
materials for new starts on over
$4,000 dwellings.
Mr.. Wyatt is understood to con.
sloer that since the housing pro.
gram now gives almost exclusive
priority on homes to veterans the
provision of the Independent Offices
Appropriation Act of 1916 doesn't
conflict with the $4,000 ceiling re-
quirement.
Meanwhile, the National Housing
Agency announced that Mr.. WAITS
chief aide in the veterans housing
program will be Rear Admiral Kirby
Smith, U. S. N. R., who yesterday
was appointed general deputy hous-
ing expediter.
Admiral Smith, who was largely
responsible for developing and su-
pervising s4,500,0O0, 900 Navy
building program during the war.
will be in charge of all operations
OF the program, MIA said. After
two decades in private business,
Admiral Smith returned to the Navy
at the start of the war and became
director of the Construction Divi-
sion of the Bureau of Yards and
Docks in October, l943.
Formerly resident of 433l Gar
field street NV. Admiral Smith is