Evening star., 1954-05-16
Eisenhower Program
On Housing Facing
Major Test in Senate
BY the Asseeiosed Press

President Eisenhower's new
housing program faces It's most
critical test this week In five
days Of cloSed-door sessions Of
the Senate Banking Committee.
The legislation. a key part Of
Gen. Eisenhower'S domestic pro-
gram. passed the House with lit
tie difficulty. But that was be-
fore the White House and
two congressional committees
launched probes Of scandals in
the Federal Housing Administra-
ton.
Ranking Banking Committee
members said privately at least
two presidential proposals are
likely to be scuttled as q result
Of the scandal. They are:
/. A liberalization Of the home
repair and modernization pro-
gram which would allow FFIA-
insured loans up to $4,000 repay
able in five years. Home repair
loans. which are running at
billion dollars a year under the
FILA program, are now limited
to $4,000, repayable in three
years.
2. A brand-new program to
provide 100 per cent insured
loans for new homes costing up
to $1,000 and built as a result of
slum clearance or some other
Federal activity. These loans
would be repayable over 40 years,
the longest term ever requested
under Government housing pro-
grams.
Bricker Fights Repair Plea.
The House has approved both
these programs.
Senator Bricker. Republican, Of
Ohio said he would vote to kill
outright the home repair loan
program. He noted the Nation
as a whole spends roughly So
billion a year on this kind Of
construction. The need for the
depression-born FILA program Of
loan insurance has ended, he
said.
Democrats on the committee,
meanwhile, scheduled a strategy
session tomorrow morning under
the leadership of Senator May
bank, Democrat, Of South Caro-
lima.
Senator Maybank said the
Democrats would offer q series
Of amendments to the admin
istration measure designed to
plug every possible loophole"
but at the same time produce a
housing bill to keep the Nations
2 million construction workers
at work.
RenegOtiatiOn Studied.
He said Democrats were seri-
0usly considering q proposal
which would allow occupants Of
homes and apartments. built
with FHA-insured loans, to re-
negotiate with the builders II
the Government decided the oc-
cupant had been gypped.
One charge in the housing
scandals is that some builders Of
apartment houses got FHA-
insured loans in excess Of con-
struction costs. pocketed the Diff
ference and left the rent-payers
to bear the burden Of the excess
loans.
The other main charge is that
the FHA-insured loans for home
repairs have been abused by slick
statesmen who got homeowners'
signatures on the dotted line,
and then provided shoddy work,
or in some cases no work at all.
Senator Maybank did not 60
into details on how his renego-
tiation plan might work, but pre-
dicted Democrats would come
up with something along those
lines"
May Approve Housing Program.
Senator Maybank also said the
Banking Committee probably
will approve the Presidents pub
lie housing program, the only
substantial item knocked out Of
the administration bill by the
House.
Gen. Eisenhower requested a
four-year public housing pro-
gram of $4,000 units a year.
Senator Byrd, Democrat, of
Virginia, meanwhile raised two
new issues in his own investiga-
ton of the housing situation.
Senator Byrd asked why FILA
never has used a 81 billion yield
insurance" program which has
been on the statute books for
several years. He also asked for
details on cases where two or
more Government-insured loans
were granted in connection with
the same property. )