Filmed Message to the Chicago Convention and Exposition of the National Association of Home Builders

I am very pleased to greet the members of the housing industry at their Annual Convention and Exposition.

Your industry is of vital importance to the national economy and vitally important to an increase in the national standard of living. And the relations between Government and the housing industry, the partnership which has existed, permitted prosperity for the housing industry and well-being for our people. This relationship must continue.

I want to assure all of you that the National Government will do everything it can to provide stimulation for the housing industry in order to maintain economic growth in the 1960's. We have laid, it seems to me, an important framework for that progress in the Housing Act of 1961.

You will recall that in that period, and I think since then in the last 2 years, we have made surprising and important progress. Private housing construction benefited as a result of that legislation from FHA insurance in close to $12 billion in housing loans from January 1961 through September 1962. A whole new sector of the housing market was opened to private sponsors and builders by a new rental program for low- and moderate-income families. This has already stimulated $180 million in private construction.

Private lenders and builders were given an opportunity to participate in expansion of home modernization and improvement by a new program of FHA-insured loans. The Federal National Mortgage Association moved actively to support the mortgage market. From January 1961 through last September, its purchases totaled more than $1.4 billion. During this period, FNMA sold $2.8 billion in obligations to the investing public, providing new capital for housing purposes.

Housing for our elderly citizens is one the national needs to which I called particular attention in the 1961 housing message.¹ Earlier programs had been relatively inactive, but this has been, I believe, quickly changed. By June 30th of this year, there were approximately 140 active projects in the program of direct Federal loans, providing over 14,000 dwelling units, with an outlay of $160 million. In the FHA mortgage insurance program, there were 197 active projects, with more than 30,000 units, and mortgage insurance amounting to more than $350 million.

In low-rent, public housing more than 100,000 units, a fifth of the total, were occupied by elderly families.

A necessity for sound progress in home building, and one of the most acute needs of expanding communities, is an adequate supply of public facilities. From January 1961 to last September, the Community Facilities Administration made 265 loans, amounting to $111 million, to small communities for construction of badly needed facilities. Over 800 planning advances amounting to $22 million were made to communities to plan future public works construction.

Urban renewal activity was stepped up beyond anything that had ever been achieved in this country. The Urban Renewal Administration during 1961, and the first 9 months of this year, approved 371 grants totaling almost $1 billion for projects in 143 cities. This is expected to result in private investment of $3 billion for construction of homes, and also for offices, stores, and factories. The resulting renewal of downtown areas is an encouragement and a stimulus to economic activity, and will benefit all of you.

The remaining needs are great, indeed. However, if we are to make progress towards our goal of a good home for every family, we must raise our annual production from the present level of less than 1.5 million to at least 2 million dwellings by the end of this decade. At the same time, we must push forward with all of our programs for renewal and development of communities and the planning of our urban areas so that the homes we build will be properly placed in a sound environment.

In doing all this, we must bear in mind the needs of those among us who suffer from special disadvantages. This administration has placed great emphasis on the difficult housing programs and problems of families of low and moderate income, of elderly people, and of people in minority groups. These are areas of need, but they are also areas of opportunity. They represent a great market into which the housing industry can move to its own benefit and the benefit of the Nation.

The problem of housing for members of minority groups is a challenge of a special kind. It tests not only our planning skills and productive capacity, but also our sense of fairness; and it is a challenge that must be met if we are to carry out the national policy of a decent home and a suitable living environment for every American family. It is in that spirit on November 20th that I issued the Executive order on equal opportunity. ² This will present you with special problems and responsibilities, but I know that you recognize, as I do, this concept of an equal chance for every American to make something of himself and to make it possible for his children to develop their talents, and that you understand how important it is in these significant years that our Nation .advance toward this goal to which our society has always been committed.

I want you to know that we will continue to work as hard as we can to develop those programs which will be of assistance to you. As I said at the beginning, your prosperity is essential to the prosperity of our country. The housing industry gives employment to hundreds and thousands of people. The more that we can do here in Washington to stimulate the housing industry to provide opportunity for you, the better off our country is.

So I want you to know that we are solidly behind you. We welcome your suggestions and advice. The Congress, I know, is receptive to your ideas, and this Government, the executive branch and the Congress, will work in the closest harmony with you.

I want you to know that I am in the process of building a home myself, and I hope all other Americans will follow my example in the coming years.

Thank you. It has been a pleasure to be with you, and I look forward to working with you in the future.