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STAN DICK-BUD BYARD-FRAN HERON

Stotemenf by HousingAdministrolor Normcrn P. Mnson, Moy 19, 1959

This week the House of Representatives has the opportunity to act on housing legislation.

We in the Housing Agency want a housing bill that is consistent with sound public and fiscal policy. It is my earnest hope that the House will strive to approve such a bill.

The House will have before it two bills on which to base its discussion and action.

One is the original Committee bill. As I have said before, it is extravagant and unsound. It would commit the federal government to heavy costs over many years to come.

The other is a substitute, introduced by Democratic Congressman Herlong of Florida. I do not endorse every detail in this bill but it represents, in my judgment, a moderate approach. Its cost is within the country's means. ft affords a basis on which differences in judgment can be reasonably reconciled.

The Herlong bill would enable our basic housing and urban programs to be resumed at their previous levels, without excessive cost to the taxpaver. There are several key reasons why it offers the prospett of a bill that can be enacted-rather than another housing stalemate.

1. The Herlong bill provides the support necessary to

Southern €qlifornio Building Homes qt Rqte of l45,9OO q Yeor

Homebuilding activity in the southern half of California opened the current year with a I5/o increase over the 1958 level, according to Security-F'irst National Bank's monthly Summary of Business Conditions. During the firsl two monihs of the year, building permits were issued for 23,038 family dwelling units. The bank said this was equivalent to 145,900 units per year on a seasonally adjusted basis, a level of activity exceeded only in 1955.

Of the 14 Counties in the southern half of the state surveyed by Security's research department, all showed gains over 1958 except Los Angeles, Kern and Inyo. In San Diego, Riverside, Ventura, Santa Barbara, San Luis Obispo, Fresno and Kings counties, homebuilding was at the highest level ever recorded.

During 1958 there were 14.7 dwelling units authorized per 1,000 population in the southern half of the state, the bank revealed. Highest ratios were reached in Santa Barbara county (38.6), Orange (31.), San Diego (25.2), Riverside (25.1), Ventura (19.6) and San Luis Obispo (18.2).

For the nation as a'whole, the homebuilding ratio was less than 7. per 1,000 population.

continue our present high level of homebuilding to meet the needs of the American people. It contains the urgently needed increase in the FHA authorization to enable the FHA program to resume on a normal basis instead of its present hand-to-mouth operations. The bill contains the same liberalized provision for FHA mortgage insurance as the original Committee bill.

2. Early enactment of such legislation would unblock the measure already passed by the Flouse to unfreeze VA interest rates. As a result of the present pegged VA rate, applications for veterans home loans are falling off sharply.

3. The Herlong bill omits the costly and unneeded $3.7 billion public housing proposal in the Committee bill. It would be folly to endanger other programs needed for housing now for a controversial proposal that would at best house no one for several years to come.

4. The Herlong bill brings the annual urban renewal