Evening star., 1949-10-03
Sponsors Drop Loans
ToCo-ops 10 Ease Path
OF Whole HousaingB Bill
By the Assoeioted Press

Sponsors of legislation to spur
building of moderately priced
homes agreed today to strip the
bill of hotly disputed section in
a move to win Senate approval.
The measure is slated to be
called for debate later this week.
One provision which has been
under fire would authorize up to
81 ,0O0. 100000 in Government
loans to co,operatives and other
non-profit organizations. The
loans would be payable over so
years at 3 per cent interest.
Senator Sparkman. Democrat,
of Alabama, chief sponsor of the
bill, told a reporter that section
will be taken out of the bill and
made separate measure for con-
sideration next year.
II still am all for the co-opera-
tive program, said Senator Spark
man, but I realize it is SO con-
troversial that unless it is dropped
for now we might not be able to
get action on the bill at all in the
little time that remains before ad-
journment." Congress has tens
tative and unofficial adjournment
goal two weeks hence.
To Look at Housing Abroad.
Senators Sparkman and three
other members of a Senate Bank
ing ACKNOWLEDGEMENTS Cain
of Washington, Bricker of Ohio
and Flanders of Vermont, all Re-
publicans-plan, to leave for Eur
ope Friday to study housing con-
ditions there.
I'VE are going to take a par
ticularly good look at cooperative
housing projects in Sweden. which
is credited with having done a
magnificent job in that field" SEN
ator Sparkman said.
The group plans also to visit
England. Norway. Denmark. Hol-
land and France.
Elimination of the cooperative
housing section from the bill will
leave provisions for:
l. Liberalization of the Federal
mortgage insurance program to
make possible lower down -pay-
ments by home purchasers. The
purpose Is to encourage construc-
ton of more two to four bed
room houses to sell at from $1,000
to $4,000.
$4,000 Rural Area Limit.
2. Stimulation of construction
OF $4,000 homes in outlying and
rural areas.
3. Extension through next
March of the Federal Housing
Agency's mortgage insurance
program for rental housing.
4. Authorize private lending in
stitutions to sell to a Federal
secondary mortgage market up to
100 per cent of CT home loans
which do not exceed $4,000, as
well as FILA insured mortgages
on lower-cost homes, co-operatives
and rental housing. At present
only so per cent Of such mortgages
held by one lender can be sold to
the government
S. Transferring temporary war
and veterans housing, without pay
ment except for land. to States,
cities or non-profit organizations
for uses approved by the local
governing body.
Free Transfer of War Housing.
s. Free transfer of certain per-
manent war housing projects to
local communities as public hous-
ing for low income families.
7. Authorizing $500, 900 900 in
direct loans to colleges and uni
versities for student and faculty
housing. line loans, at 312 per
cent interest, would mature in not
more than 40 years.
Senator Sparkman said the bill
is designed to supplement the
public housing and slum clearance
law which Congress enacted ear
lier this year.
That law" he said, was a
start toward providing publicly
owned rental dwellings for low
income families. This new bill is
designed to help put more private
homes within the financial reach
of more people,"
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