Evening star., 1958-05-11
ny J. A. OLEARY
star star Writer

Expansion OF Federal aid 10
cities for urban renewal prof.
ects is expected 10 be a topic Of
major interest at Senate hear
ines on a general revision Of
housing laws. starting tomor-
row morning.
Senator Sparkman Of Ala
bama, Democratic spokesman
on housing matters. has pre-
pared a tentative plan calling
Tor an additional SIS billion
pver the next 10 years 10 step
up Federal participation in
urban renewal programs. at an
average rate Of $3.50 million a
year.
f. The administration has sub
mitted a more modest proposal.
calling for an additional
1850. 100000 over a six-year
period. This would double the
total amount that has been
authorized up TO now.
Most OF the existing urban
renewal funds will have been
committed by July /. except a
500 million discretionary fund
in the hands Of the President.
and a $50 million allotment
which has not been released by
the Budget Bureau.
Keen Interest Here
. Washington has a keen inter-
est in urban renewal legislation,
because 1t has several such
projects under way in the
Southwest, and a new one in
the planning stage in the
Northwest and Northeast, on
both sides of North Capitol
street.
. Renewal projects are carried
out by using the Governments
power of eminent domain to ac-
quire and clear the area, after
which the land is sold for new
private developments. The
United States pays two-thirds
and the local government one
third Of any loss incurred in the
re-sale of the area.
Senator Sparkman said there
is widespread interest in urban
renewal in many towns as well
as big cities, and he does not
believe the administrations six
year plan is sufficient.
Public housing, which has en-
.countered more opposition than
any other part of the Govern
ment's many-Sided housing pro-
gram. also will figure in the
1883 revision bill.
Asks Years Extension
The administration is asking
only for a one-year extension
;of the time allowed to start
the $4,000 units authorized each
year for 1857 and 1858. This
would mean the 1857 units
could be started anytime up
to July, 1859. and this years
units, until July, 1860.
/. Senator Sparkman is sug-
.gesting a new authorization for
another $4,000 units, to be
started before July, 1862.
AS in the past, the new hous-
ing bill will call for a five-year
extension of the authority of
.FHA to insure home mortgages,
with an increase of SO billion
each year in the ceiling on the
amount Of outstanding insur-
ance on such mortgages.
Amendments also will be
considered to increase the dol
lar limitations on insured mort
cages, both for regular rental
housing and for housing in
urban renewal areas.
Another proposed change
would adapt the relocation
housing program to needs aris-
ing from such governmental
action as the new Federal high
way program. Under existing
law relocation housing may be
built ony in a community that
has program approved by the
Housing and Home Finance
Agency. The amendment would
extend relocation housing to
include the environs or general
market area of such commu-
nifty.
New Policy Statement
The tentative bill drawn up
by Senator Sparkman to serve
as a basis for discussion at the
hearings before the Banking
Committees subcommittee on
housing also contains a new
statement of policy to govern
.low-rent housing projects.
1t would establish a future
policy of developing low-rent
housing in smaller projects,
better related to local neigh
borhoods, to avoid the institu-