Evening star., 1949-07-17

Nine days ago Congress q
National Housing Act Of l949, '
struction work and up to 40 year
President. Truman signed 1t. Pas
sage of the bill climaxed hard
fought, four-year battle, and rep
resented one of the administra-
tion's major legislative victories.
The important public housing
provisions Of the legislation won
out in the House by only five
votes only after the President
threw the full weight Of his Office
and prestige into the battle and
singled out the real estate
lobby" to receive bitter criticism
for opposing the measure.
Industry Fell Short
In the post-mortem period
which has followed passage OF
this far reaching bill. more than
one pro-public housing lobby has
claimed credit for its passage
while other organized groups
which fought the legislation
tooth and nail have their own
assortment of explanations as to
why tho measure was approved
by Congress.
And while each explanation and
claim may have some merit. 1t is
probably as certain as anything
can be that II the housing in
dustry somehow had been able
more fully to meet the piled-up
housing need. the support for
a public housing solution Of the
problem. in as extensive q form
as provided by the new housing
act, never would have generated
In Congress.
But the housing industry. in
spite of chalking up near-record
in dwelling construction in one
postwar year and producing q
record in others, could
not generally meet the need-and
not of housing for low
o-middle- income families.
Housing Administrator Ray
mond M. Foley. who is looked upon
not unkindly by the housing in
dustry and who only few days
ago was referred to by one Of the
topmost industry leaders as per-
son whom builders ARE fortunate
in having" as administrator
summed up the industry problem
in testimony In behalf Of the new
housing measure as follows:
For Low.Income Group
1T has been contended. for ex.
ample. that private enterprise car
suitably provide for the housing
needs Of low-income families.
when I say that experience
invalidates this argument. I speak
as . strong supporter Of private
enterprise in housing. and as one
who believes that the private hous-
ing industry can greatly enlarge
the area Of its operations.
But I know from personal ex-
perience over the past IA years
that, as far as new housing is con-
cerned, private enterprise has con-
tinuing difaculty in servicing fully
even the middle range Of income
and that there is no current pros
pect Of its reaching the income
levels now requiring public hous-
ing.
Moreover. while some low-in-
come families are undoubtedly
occupying used housing that meets
standards. the fact that
millions of substandard dwellings
continue in intensive use is clear
evidence that the great bulk of
our supply of standard housing is
beyond the financial reach Of low
income families"
The new housing act is designed
to meet the needs OF low
income town and city families
which Mr.. Foley referred to,
though there are also included
trimmings" in the bill which will
provide slum- clearance aids. hous-
ing help for low-income farmers,
q program Of housing research
and other benefits.
Financial Provisions
Briefly. the financial provisions
Of the bill authorize the following:
A maximum Of 1908 900, 900 q
year for 40 years In subsidy pay
to local housing author
tiles.
An increase in the public hous-
ing loan fund to $500, ,000, 600,
from which local authorities may
borrow.
A maximum Of $1,000, 600. 900
in loans for slum clearance, plus q
maximum of $5o0,oo0,00o for use
as capital grants in connection
with slum clearance.
Loans totaling $3.50, 900 900 for
farm housing, plus annual subsi-
dies Of $25, 100000 and direct
grants Of $25,000.000.
The chief device by which the
public housing program will be
made possible under the bill is the
extension Of the pledge by Con-
gress to provide the $308. 900, 900
in annual subsidies over the 40
year period.
With these annual contribu-
lions as security. municipal hous-
Ing authorities will be enabled to
offer hords for Sa1A IN f7nanca tho