Evening star., 1961-03-09
HOUSING
Continued From First Page

housing constructions. Admin
istration officials said the Gov
ernment could SubSidize the
100000 units with the $50 mil
lion uncommitted from the
l949 authorization Of 1886
million.
Greatly expand FHA's pro-
gram Of home improvement
loans, to make this device pos
sibly the major vehicle OF the
drive to upgrade decaying
neighborhoods and modernize
housing. The five-year limit
and $500 ceiling on FILA re-
pair and modernization loans
would be greatly increased.
administration officials indi-
Gated, and some new types Of
home-improvement credit may
be devised.
Add $500 million to the Fed
eral National Mortgage AsSo-
ciation special assistance fund
and loan the money to non-
profit groups willing to put
up apartment houses for peo-
pie who cannot afford other
housing on the market.
Double to 500 million the
direct loan program for nom
profit groups willing to build
housing for elderly persons.
President Kennedy said there
are Is million people in the
country now IS years old or
over and there would be 20
million in the population by
1870. Administration officials
said labor unions probably
would qualify for these direct
Federal loans.
Would Sell at . Loss
Authorize cities to buy up
rundown houses under the
urban renewal program, fix
them up and then sell them at
a loss to moderate-income fam
lilies. The Federal Govern
ment would pay two-thirds Of
the loss and the city one-third.
Establish q special 500 mil
lion fund to help cities buy up
open land so they can control
the rate and character Of COM
munity development" The
Federal Government from this
fund would pay cities one-fifth
the cost Of acquiring the open
land.
Increase the fund of Federal
grants for city master plans
from $40 million to 500 mil
lion and the Federal contribu-
tion from one-half to two
thirds Of the planning cost.
Extend the deadline for CT
home loans beyond July Is,
1862. Although President Ken
nedy's message did not specify
a new deadline. administration
officials said probably q three
year extension would be sought.
Administration officials said
drafts Of the whole package Of
legislation will be laid before
Congress this month.
Experimental Programs
The Presidents recommends
tions add up to q broadening
Of many housing aids now on
the books as we'll as new ap-
proaches to stimulate home
building. He described some of
these new approaches as ex-
perimental programs.
For example, administration
officials said they intend to try
out the no-down-payment, 40
year mortgage approach for
moderate -income families for a
period Of from IL to 1s months.
AS 1t is now, only families dis
placed by Government action
can buy homes under these lib
eral terms. The homes can cost
no more than $4,000.
Administration officials said
they planned to raise that $12,-
900 maximum by $1,000 or ST.
500. Mr.. Kennedy said, this
broader program will offer an
opportunity and a challenge to
both builders and lenders to
meet the needs of middle-in-
come families through private
enterprise without Government
subsidy"
II this broadened program
does not catch on, adminiStra-
ton officials said they will try
some other stimulants-possi-
bly, direct Federal subsidies to
make 1t easier for moderate
income families to obtain and
pay off mortgages. A 40-year
mortgage at 51a per cent inter-
est on q a'$l0.000 loan would re-
qutre payments Of $3.50 a
month.