Statement by the President on the Failure To Enact the Housing Bill.

THREE OF THE most important proposals contained in the housing bill which the administration sent to the Congress early this year would have authorized: (1) a six-year program of federal assistance for urban renewal totaling $1.3 billion; (2) an additional $200 million for college housing loans; and (3) several liberalized requirements designed to stimulate housing construction through the increased use of private capital.

The Congress did not enact the administration's proposals.

In the absence of legislation enacting this program, and to provide as much flexibility as possible until the next Congress can act on housing legislation, I am today taking the following action:

1. Releasing $100 million for urban renewal capital grant contracts, in accordance with the special authority given me in the Housing Act of 1949, as amended. The release of these funds to the Housing and Home finance Agency will furnish substantial aid to the urban renewal program, and will meet needs until the Congress meets again next year.

2. Directing that the Housing and Home finance Agency, in its actions under the Public facility Loan Program, use the funds available to it by giving priority to the smaller applicants without established credit in private markets. This should meet the needs of these communities for such vital facilities as water and sanitation when funds are not available from private sources at reasonable terms.

In addition to my actions, the federal National Mortgage Association, recognizing the expiration of the requirement for purchase of mortgages at par under its special assistance programs, is issuing a new schedule of prices designed to assure the use of private financing where it is available, without reducing the construction of new housing.

While continuing the college housing program insofar as the receiving and processing of applications is concerned, the Housing and Home finance Agency will be unable to make commitments at this time in the absence of a congressional authorization of funds.

I shall ask the forthcoming 86th Congress to remedy the lack of legislation in the housing field. Specific recommendations will be made to the Congress in the annual budget message to provide for needed authorizations for urban renewal, for college housing loans, for an increase in the mortgage insurance authority to meet developing requirements, and for such other provisions as may then be needed to carry out our national housing policies.