Evening star., 1949-12-31
Foley Sees 50 Need
For Housing Rentals
Starting at S45
(Continued From Page BID

make real progress toward our
goal of a decent home for every
American family. We must not
accept the best that we have done
rs the best that we can do. We
have a capacity to. exceed the
194s record in 1850. and in the
years to come. If we center our
efforts on good housing within
means Of the average family.
1.-THE home-building industry Is
to be complimented on its record
In 1949. The 1949 production
demonstrates that we can produce
more than q million housing units
. year as q normal average with
out undue strain on even our cur
rent capacity.
"He pointed out that the 194s
record was reached with about 10
per cent lower production Of build
ing materials than the year before
and with no increase in peak
labor requirements.
1.-THE key to expanding our pro-
duction Of homes In the future
lies In our ability to meet the
lower price and rental demands
of q large section Of the middle
income area which we have
scarcely tapped" Mr.. Foley said.
To do this requires the concerted
efforts Of all phases Of the in
dustry and OF Government.
New Proposals Forecast.
"Mr. Foley said that in addition
to existing programs directed to
middle income housing assistance
and to recommendations made
last year and still pending before
the Congress, further legislative
proposals will be made to the new
session Of Congress to stimulate
private housing to meet more OF
the middle income requirements.
Government aids, Mr.. Foley
said, played an important role
in 1949 construction. He said that
about one-third Of the years
homebuilding was financed under
commitments to insure by the
Federal Housing Administration,
including most Of the large-scale
rental construction.
"In addition, he said, about 30
per cent of mortgages recorded
under $4,000 were made by saw
ings and loan associations, which
are aided through financial re-
serves and investment insurance
through the Federal Home Loan
Bank System and the Federal
Savings and Loan Insurance Cor
poration.
'The sharp upturn in CT home
financing through the Veterans
Administration. he said. was
stimulated by the secondary mort
gage purchases through the Fed
eral National Mortgage Associa-
ton.
'Mr. Foley also pointed to the
increase in the proportion Of rem
tai housing in 1949. stimulated
through FILA mortgage insurance.
He said, however, that In 1850 the
rental demand is for housing at
substantially lower rents than
those attained in 1949. and that
both the Agency's administrative
policies and its legislative recon-
mendations will be directed to-
ward this lower rental field.
"Mr. Foley said that programs
set up under the Housing Act Of
1949 will also contribute to greater
production Of housing in 1850. j.
"'Statements by spokesmen for
some private groups that these
programs will hurt private home
building are entirely unjustified.'
he said. The contrary is true. The
bulk Of the job must be done by
private industry and the chief
aids Of the Government are d.
rected toward helping it In that
task.
Progress Forecast.
"Mr. Foley summarized ex-
pected> progress under the new
Housing Act of 1949 program as
follows:
Housing Research: Though
entirely new in the broad scope
authorized by the Act Of 1s49,
this program should produce defi-
mite II presently hard-to-measure
results in lowering costs, benefiting
all housing, through work under
way and through more widespread
use Of cost-saving methods already
available.
Public Housing: Estimated to
add about 100000 new starts be-
yond what would be achieved
otherwise, restricted to q market
well below that Of private enter
prise and serving the most criti-
cal housing need-that Of low
income families.
Farm Housing: Farmers Home
Administration estimates $4,000
repair and construction loans un-
der the new program by June 80,
1850. an important contribution
In rural areas, though quantita-
lively not large In terms OF over
oil housing volume.
"Slum Clearance and Urban Re-
development: Approximately ITS
cities have thus far indicated their
Intention to participate in the
program. Many Of these will be
engaged In 1850 In the plans and
surveys necessary to launch slum
clearance projects and in as
feftDlIIsg land for this purpose.
Some, already well advanced in
their preparation, will probably
begin actual work on project
sites"