Evening star., 1948-02-23
President Urges
Strong Rent Law
Until May, 1949
Also Asks Extension
Of Home Building Aid,
Long-Ronee Plan
BY the Associated Press

| JfOl law, along with extension or
7nancial aid to home building.
m a special message to Congress,
T. Truman. asked that this emer-
ency action be coupled with long
ange housing program to produce
100000 dwellings year for the
lext decade.
I'VE must adopt them together so
that they may work together" the
presidential message said. I'VE
must make orderly progress, not a
staggering, uncertain series of starts
and halts" *
Rent control expires February
20. Republican congressional lead
ers have agreed to push through a
30-day extension of the present law
this week. This will give time for
study, of bill pending in the Sem
ate for a 14-month extension Of
ceilings to April 80, l949, on a modi-
fed basis,
Offers Five-Point Objective.
Mr.. Truman asked for more
housing at lower cost, both in the
immediate future and for the long
run"
He set before Congress the five
point objective:
/. ITO continue and strengthen
rent control.
2. ITO stimulate a higher volume
of home building on a sustained
basis with special emphasis on
rental housing with proper safe
guards against possible inflationary
effects. -..-.
3. ITO reduce building costs.
4. ITO assist communities in pro-
viding low-rent housing for families
in the lowest-income groups.
S. ITO aid cities in rebuilding and
undermining rundown areas"
Less than is per cent of the S40,-
600 new homes built in 1947 were
rental units, the President said, and
almost no housing at all was built
for low-income families.
Asks Adequate Enforcement.
Tenants in many parts of the
country have been receiving notices
from landlords that their rents will
be substantially raised If rent con-
troll is allowed to expire on Febru-
ary 49," he reported.
The new law, he said, should
protect the 100000 tenants who
have agreed to Is per cent increases
under the present law.
These families have no protec-
ton beyond December 81, 1s48.''
if the law expires, Mr.. Truman
pointed out.
A new rent control law should
provide adequate authority to
enable the Government to enforce
the law and appropriations should
be sufficient for an adequate en-
forcement staff" the President
said.
In extending emergency finan-
cial help for home building, Mr..
Truman said, Congress should pro-
long the liberal loan insurance
provisions of Title of the National
Housing Act for one year beyond
the March 81 deadline An increase
of $4,000, 100000 of insurance auth
orization should be granted, half
of it earmarked for rental homes
only, he said.
Mortgage Buying Power Urged.
The Government also must con-
tinue a secondary market for home
mortgage loans. with adequate
safeguards against inf1ationary
effects" Mr.. Truman advised.
Federal purchase of mortgages
should be limited to localities where
the drying-u of credit Is endanger-
ing home building, and when 1t Will
not mean higher costs or "unsound
credit standards" the President
said.
Federal power to buy up home
mortgages now rests in a subsidiary
of the Reconstruction Finance
Corp. RIGS authority expires
June 80. Mr.. Truman proposed
that mortgage-buying power be
transferred to the overall housing
ofice-the Housing and Home
Finance Agency headed by Ray
mond Foley. HHFA, he said, would
handle both FILA loans and those
guaranteed by the Veterans Ad-
ministration.
Sees Ration Power Needed.
AS a third financial aid Mr.. Tru-
man renewed his plea that the
Government insure return on in
vestment for companies which
launch big scale rental projects.
The long pending Taft-Wagner-
Ellender housing bill would PROVIDE
sucn yield insurance"
Power to ration housing materials
still, is needed, Mr.. Truman said.
He expressed doubt of success OF a
voluntary anti-infation law recently
passed. Under this law industries
can work together to distribute
scarce supplies to hold down prices.
To lower building costs Mr.. Tru-
man sketched several lines OF at
tack. They include: Standardizlng
materials, speed-up in housing re-
search, changing out-of-date build
ing codes, Federal insurance OF
loans to housing co-operatives and
vigorous enforcement" of anti
trust laws,
! To insure decent housing for low
income families the President asked
revival Of public housing activity.
Urges Funds for Cities.
He urged funds for cities to build
100 900 public dwellings annually
for five years.
| Funds for slum clearance should
not be voted in large volume now,
Mr.. Truman said. but authority
should be granted to pave the way
for later action.
Many of the proposals which 1
have recommended are contained in
housing legislation which has long
been before the Congress, Mr.. Tru-
man said. 50" - Other proposals
that I have here made as well have
been carefully studied and their
Ineed demonstrated.
The way has therefore oeen
Il paved for speedy action on the en-
Il ire housing program that l mere
! recommend and most OF which !
nave recommended before"