Evening star., 1952-06-01
House Hearings Set
Wednesday in Probe
|0f Faulty 6I Housing
VA Loon Program Due
Scrutiny; Nd. Project
Muy Bring Complaints

A House investigating commit
tee will begin a series of hearings
at 10 am. Wednesday in its probe
of alleged faulty housing and the
Veterans Administrators home
loan guaranty program in the
Washington Metropolitan area.
First witnesses probably will be
veterans to complain about de-
fective housing and VA policies in
q certain nearby Maryland devel-
opment.
Committee Chairman league
Democrat, of Texas. said he plans
the series of hearings as the result
lof lengthy investigation by the
committee staff.
There may be about six sessions
About 90 cases In the Metropolitan
area have been investigated. Six
OF these are ready to be put on
the record at public hearings.
First Session Postponed.
The session this week originally
had been scheduled for May q,
but was postponed. The league
unit is known as the House Select
Committee to Investigate Veter-
ans Education Training and Home
Guaranty Program.
Identity Of the nearby Maryland
veterans housing project which
will lead OF the series Of public
hearings. was not disclosed last
night.
The league units investigators
included one from the committee
itself, and one each from the VA
Inspection and Investigation Unit;
one from the Housing and Home
Finance Administration. and one
from the VA Loan Guaranty Gen.
tral Office.
| Following the veteran home
owners as witnesses will be rep
lresentativeS of builders, and lend
lers selling homes to veterans, and
lomcials from the Regional Office.
Studying Faults OF Law.
From a committee source last
night came the prediction that
the investigators are looking into
what may be wrong with the VA
law, operations. and inspection.
The nearby Maryland case, up
Wednesday, will be followed by
others from the Washington Met
Iropolitan area at future hearings.
A wide variety of complaints
have come from veterans about
the homes they are buying in the
Maryland development, it was
learned.
The charges include defects in
the housing and the way the two
story brick homes have been built.
Delays in delivery of homes have
run as high as 18 months, or about
three times as long as promised,
investigators said.
| The VA, according to informa-
ton before the committee, has
been approving increases in the
prices of veterans homes, and
substitutions Of cheaper mate
Trials.
May Get Standard Contract.
The committee also plans to go
into the kinds of contracts drawn
up by builders. One solution toI
several problems may be some
form of standard form Of builders
contract approved by the Govern
ment, 1t was indicated.
Among witnesses from the VA
will be Morgan B. Callahan. loan
guaranty ofiicer of the Washing
ton Metropolitan area. He is inI
charge of handling VA guaranty
on loans on houses built forI
veterans in the Metropolitan area.
Mr.. Callahan is being investi-
gated by a VA Central Office Hear
ing Board in regard to expense
vouchers submitted for use Of his
private automobile on official
business.
Meantime the House tomorrow
win consider q bin on the floor
designed among other things toI
create additional safeguards for
the veterans home loan program.