Evening star., 1953-10-04
Federal Housing Policy Studied

"better housing for those now
compelled to live in slums" one
OF the Governments moral
obligations" and an example
Of "a sound investment in o
sounder economy"
Fundamental Problems
Questions on which Mr.. Cole
and his committee will have to
reach decisions within the next
two months reach to the very
bedrock Of Federal policy, and
whatever conclusions are
reached certainly will be bound
to have political repercussions.
AS already noted, one of the
most highly charged issues is
over whether the Eisenhower
administration shall continue
to support the public housing
idea. This program in the past
has been the target of much
criticism from industry groups
and is the most glaring exam
pie in the housing field Of
what conservative opinion fire.
quently has described az
creeping socialism"
A second highly controver-
sial issue is over the matter
Of direct lending. At present
q revolving fund of $3.50 mil
lion is available for direct
loans to veterans unable to
obtain CT financing from pri-
vate lenders. Mortgage bank
erS, in particular. heatedly OPP
pose such lending, although
veterans organizations are
lined up against them.
Interest rates, also are con-
troverSial, but it is doubtful
that Mr.. Cole and his COM
mittee will be able to make
any effective recommends
tions along this line, since
mortgage interest rates are
tied deeply into the overall rs
cal policy Of the administra-
tion and may be difficult to
separate.
Other basic questions relate
to the future of the organiza-
tion setup Of the Housing and
Home Finance Agency, the
Federal Housing Administra-
ton, the Federal National
Mortgage Association, the Vet
erans' Administration and other
Federal Offices in the housing
field.
Shall the Government main
tain the Housing and Home
Finance Agency as a strong
central agency dealing with
housing matters? Shall there
be q greater reliance upon
State and local direction Of
housing aids, and of slum-
clearance and urban redevelop-
ment programs? What shall
be the future obligation of the
Federal Government regarding
financial contributions, and tc
what extent shall 1t aid differ
ent programs? Shall the role
of private industry be empha-
sized in slum-clearance and
rehabilitation programs. and
shall private builders receive
greater financial inducements
to get into these fields?
The Outlook
Decisions on these and other
questions to come from Mr.,
Cole and his committee are
expected to serve as the basis
of the Eisenhower admins
tration's housing policy.
Most observers expect a call
for diminution of Federal re-
sponsibility will be included as
q key recommendation. But
the Advisory Committee and
Mr.. Cole may come up with a
few surprises. Any social or
political understanding must
certainly recognize the i'm
portance Of the housing issue,
and there Is no evidence that
either Mr.. Cole or the Presi-
dent himself are unaware that
every American wants a decent
place to live.
Mr.. Cole seems certain that
some new ideas can be brought
to bear, for last week he said:
There is readiness for
fresh thinking on these ques-
tions. We are at q logical
threshold for new and i'm
aginative approaches to the
housing problems Of the Ma
ton"