Kennedy Proposes Broad Housing Program

DRESIDENT Kennedy in a special Presidential housing -f message to Congress (March 9) proposed a $3.25 billion offensive to revitalize the nation's housing industry, to provide better dwellings for low-income families and to stop urban blight.

In brief, his recommendations are:

1. Housing for moderate income families-presently limited FHA insurance of no-down-payment 40-year mortgages should be broadened temporarily to include any family; enactment of a new program of long-term, low interest rate loans for rental and cooperative housing.

2. Helping low-income families-removal of a limitation on use of remaining aathorization in the 1949 Housing Act for public housing, thus authorizing about 100,000 additional low-rent units; a program of demonstration grants for community experimentation in low-income housing.

3. Housing for the elderly-that Congress increase the present direct loan authorization for housing for the elderly from $50 million to $100 million; the administrator of the Housing and Home Finance Agency is directed to earmark 50,000 units of low-rent public housing for low-income elderly persons.

4. Revitalization of urban areas-Congress to give communities wider discretion to determine. urban renewal areas, to liberalize federal allowances for relocation payments to displaced businessmen. FHA has been directed to speed processing of applications for insurance on properties in urban renewal areas.

Mr. Kennedy recommended that Congress authorize FHA to insure loans for home improvement, and authorize resale of existing houses in urban renewal areas at a realistic price for rehabilitation.

5. Land Reserves-the HHFA administrator and Secretary of the Interior are directed to develop a long-range program for orderly development of urban land. Congress should authorize $100 million to start a program to help public bodies finance reservation of land, and authorize urban renewal loans to finance acquisition of open space for public or private development.

6. Community Facilities and Urban TransportationKennedy will submit a bill to authorize an additional $50 million for public facilities loans; study of urban transportation problems to be made.

7. Rural Housing-the unused balance of farm housing loan authority, due to expire June 30, should be extended five years; the Secretary of Agriculture and others are directed to develop adequate credit for housing in rural communities; Congress should authorize farm improvement loans to be secured by other than mortgages.

8. Veterans Housing-Congress should extend loan guarantees and direct loan program and increase direct loan iuthority above the present $150 million.

9. Training and Research-Congress should appropriate sufficient funds to do research on housing and urban problems, to improve home-building techniques and lower costs.

10. A New Department-the President recommended establishment of 1 new cabinet-ranking department of housing and urban affairs.