Evening star., 1947-05-27
President Calls
ForNew0ver-An
Housing Agency
Proposes Permanent
Setup to Handle All
Phases of Work
BY fhs Assoeiofed Press

President Truman today pro-
posed to Congress creation of a
completely new housing and
home finance agency to handle
virtually all Government activi-
ties in that field. -
In special message, Mr. Truman
said such an agency will unques-
tionably make for greater efficiency
and economy"
His plan would scrap the existing
National Housing Agency. which CO.
ordinates present housing functions.
1t was created under the Presidents
wartime powers and will go out of
existence six months after the de-
clared end of the war.
Mr.. Truman said the proposed
new agency should be a permanent
part of Government.
Government Role Important.
"The provision of adequate hous-
ing will remain a major national
objective throughout the next dec
ade," the message said.
This primary responsibility for
meeting housing needs rests and
must continue to rest with private
industry, as have stated on other
occasions.
"The Federal Government. how
ever, has an important role to play
in stimulating and facilitating home
construction.
White House aides forwarded Mr..
Truman's message to Congress dur
ing his absence in Missouri.
1t transmitted to Capitol Hill Re
organization Plan No. g." providing
for bringing into one agency most
of the Governments housing activ-
tiles. 1
Earlier Proposal Rejected.
Under a law enacted by the last
Congress, Mr.. Truman has author
ity to propose such consultations
or reorganizations of the Govern
nent bureaus and agencies Such
plans become law automatically un-
less Congress adopts resolution
disapproving them within go days
after they are submitted.
Congress last year rejected a diff
ferent Truman proposal which
would have established the present,
temporary National Housing Agency
as a permanent unit for the super
vision of housing functions.
When MIA dissolves, Mr.. Tru-
mans new message told the legisla-
tors, "the housing program of the
Government will be scattered among
some 13 agencies in seven depart
ments and independent establish
ments."
He continued:
Il need hardly point out that such
o scattering of their interrelated
functions would not only be inef-
ficient and wasteful but also would
seriously impair their usefulness"
Therefore, he said, he asked estab-
lishment of permanent agency sat
the earliest possible date"
Three Agencies Proposed.
His plans call for three agencies
operating In and under the housing
and home finance agency, as fol-
lows:
/. A home loan bank board of
three members, to administer the
Federal Savings and Loan Insurance
Corp, the Home Owners Loan Corp. |
and the functions of the Federal
Home Loan Bank Board.
2. A Federal housing administra-
ton, with the same functions now
held by that agency. One Of FHA's
major functions is insurance of
mortgages. ION new homes.
g. A public housing administra-
ton, to take over functions of the
Federal Public Housing Authority
and some remaining emergency
housing activities.
Top officials of the new housing
setup, Mr.. Truman proposed, would
be an administrator to head the
housing and home finance agency,
the three members of the Home
Loan Bank Board and one commits
sioner each for the FTIA and the
public housing administration.
Subject to Confirmation.
All would be appointed by the
President, but his selections would
have to have Senate approval.
The plan would vest in the new
administrator considerably more
power than as is presently exercised