Evening star., 1961-02-02
3. HOUSING AND COMNdU-
NTTY DEVELOPMENT

NIFTY DEVELOPMENT
During the 1se0s, We must
have the energy and vision to
lay sound foundations for meet
ing the problems which will
result from the steady growth
Of our urban areas through the
balance Of this century. This
task calls for new initiative
and imagination in o great
diversity Of fields: In housing
construction, in the mainte-
nance ard improvement Of our
vast existing stock Of housing,
in urban renewal, in the pro-
vision Of essential community
facilities. and many others. It
calls for the revitalization Of
administrative machinery at
the Federal, State and local
levels. It calls for more COM
prehenave and more practical
planning for urban and metro
politan areas. ] shall shortly
make specific recommendations
to the Congress for action Ii
this whole vital AREA.
Meanwhile, to make sure that
general expansion Of long-term
credit IL effective in stimulating
residential construction, we
have surveyed the range Of
administrative actions which
can be taken promptly to help
lower the cost Of housing credit.
A reduction Of mortgage in
tereSt rates Is already overdue.
Despite the easing Of the gen.
eral money market in the past
year, the cost Of mortgage
credit still hangs Just below its
postwar peak. I have been
assured that officers Of many
leading lending institutions
share my view that present
mortgage yields are unreahstic,
and are prepared to cooperate
In an effort to make mortgage
money available at lower rates.
Consistent with this appraisal
Of the present situation, I have
directed the Federal Housing
Administration to reduce the
maximum permissible interest
rate On FHA-insured loans
from Ssz to 81 per cent. The
resources Of the Federal Ma
tional Mortgage Association in
the secondary mortgage market
win help 20 give effect TO this
change In the rate. The FNMA
stock subscription requirement
applicable 70 sales Of mort
cages In the FNMA secondary
market will be temporarily cut
In half. I shall request the
Federal Home Loan Bank
Board TO cooperate In ad-
vanCing this effort to reach q
more realistic level Of mortgage
lending rates.
What Is good policy here for
the private housing sector is
also good policy for public
construction activity. Under
the program BY which loans
are made 10 local public bodies
for the construction Of public
facilities, the Community FaciI.
ities Administration at my
direction II reducing interest
rates on new loans. This pro-
gram win also bS broadened to
make eligible for leans many
communities and certain types
Of pubIle facility projects which
are now excluded.
Ihave instructed the Housing
and Honae Finance Agency to
hasten, the initiation o. com.
pletionsof those approved proj.
ects In which . speed.up can
BE- effected without waste. In
examining new applications for
assistance, HFFA viii give pri-
ority Of attention to projects
which are fully planned and
ready for construction. and to
projects located In areas Of
chronic unemployment. Under
the college housing program,
available funds will be COM
mitted more rapidly than hith-
erto planned, and efforts will
be made to move forward the
starting date for previously
approved projects.
The Federal Government will
do everything In its ability at
all administrative levels to
quicken the pace Of urban
renewal work. Given this as
surance, mayors and other |
local officials can by energetic
leadership accelerate projects
under way or about to begin. |
I have today telegraphed the |
mayors Of 297 cities to urge |
that they review their urban
renewal projects to find ways |
Of fastening the completion |
Of these vital civic improve
ments.
3. TEMPORARY UNEMPLOY-
MENT INSURANCE EX-
TENSION
The number Of persons out |
Of work and seeking employ. |
ment has been rising since the |
early summer of 1860 and has |
reached serious proportions In |
these rigorous winter months. |
In January 81 million persons
were unemployed. more than
1.3 million has been contin-
uouSly out Of work for ISL
weeks or longer, 100000 for
six months or more. In ad-
dition, workers involuntarily |
confined to part-time work
numbered IL million, Q rise
Of 200, 900 over December.
We have long since decided
as o Nation that We will not
turn our backs upon workers
and their families undergoing
the hardships Of unemploy-