Memorandum, Outline of Immediate Steps in Aid of Housing

No.9 C OUTLINE OF IMMEDIATE STEPS IN AID OF HOUSING Handfor 14 There is general agreement that a large volume of housing construction represents a major area for post-war production, employment and investment. The housing shortage is acute in most sections of the country, reflecting necessary war- time curtailments and a deficient rate of building before the war. Millions of dwell- ings in our cities and on our farms are clearly substandard and should be replaced if we are to reach a goal of a decent home for every American family. To meet these pent-up needs and to provide for returning veterans and for new families, it is clear that annual construction of a million and a quarter new houses could be absorbed for years after the war. This would be double the rate of building in the three years préceding the war and 75 percent above the average rate during the Twenties. To provide maximum support from the Federal Government for a prompt start toward this objective, the following steps are desirable: 1. Immediate removal of all materials controls with respect to new home con- struction. but with adequate measures to assure sound pricing until normal market conditions are restored. 2. Prompt administrative action to expand the production and supply of building materials through expeditious release of surpluses held by the Army and Navy, assist- ance by the U. S. Employment Service in overcoming present labor shortages in produc- ing industries, and effective controls against inventory speculation. 3. Prompt disposition of the temporary and permanent war housing units owned by the Federal Government, consistent with maximum interim use of this housing to re- lieve distress cases of veterans and servicemente families in accordance with existing law. 4. Immediate review of existing legislation to assist veterans in acquiring their own homes, in order to assure maximum simplicity in procedures and adequate protection of the veteran and of the Federal Government. 5. Prompt administrative action (a) to further streamline existing mortgage insurance procedures as a means of stimulating construction of lower price private housing, and (b) to reactivate low-rent public housing projects deferred since the start of the war. 6. Early consideration by the Congress of comprehensive housing legislation to expedite technical progress and lower costs in housing construction, to extend the market for new private housing, to aid cities in acquiring slums and blighted areas for sound rebuilding, and to provide decent shelter for families of low income. These subjects have already received extensive study by appropriate committees in the Congress and are embodied in pending legislation. 7. A vigorous educational program by the Federal Government in the interests of sound home purchases by veterans and the general public to encourage industry to in- tensify construction in the lower price and rental ranges which is the big market as- suring a sustained large volume of building, and to discourage inflation in the prices either new or existing houses as a supplement to other appropriate measures.