Statement by the President on Announcing an Experimental Low-Cost Housing Project in Austin, Texas.

HERE in this State capital of Austin, we are going to launch a new experiment in lowcost housing.

The location is 1.2 acres of Federal surplus land. On that site we will ask housing producers to build a number of new model homes--different in design and concept but with this common purpose: to sell--when produced on a large scale--for as low as $5,000.

If we succeed here, then one day in this Nation of so much wealth and abundance we can help every poor family to achieve its dream of home ownership.

I hope that these model homes will bring out the best in our ingenuity and know-how. I hope they will apply the latest designs and materials our technology permits. I hope that we will see homes of variety and good taste, clean, comfortable, well constructed-places of pride for a family.

Secretary Weaver and Edgar Kaiser, who heads a distinguished commission on urban problems, have spent several months in preparation for this project. I discussed the potential of this venture--and what it can mean elsewhere in the Nation--with these gentlemen this afternoon. We are excited by its prospects.

This project will move us from the drawing board into the arena of practical experience. It will test the techniques and the materials which we are going to need to reach our goal of 6 million housing units for low and moderate income families over the next 10 years.

Secretary Weaver gave me these figures just a while ago. If we can put up a house here costing $5,500 at the current 6 3/4 FHA insured interest rate, then--under the new housing bill's "home ownership" interest subsidy plan:

--The monthly charge would be $48, including principal, interest, taxes, and insurance.

--This can mean that a family of two earning about $1,700 a year can buy the home, paying $28 monthly, with the Government paying $20. If the home costs $7,500:

--The monthly charge is $67.

--A family of four with two young children earning $3,000 a year will be able to own the home by paying $39 monthly, with the Government paying $28.

Some 30 years ago, another housing experiment began in hope when the first low-rent housing project of the New Deal was built here in Austin.

Today, hope for the Nation grows again in this city as we launch another new housing adventure--to harness the stride of technology to meet one of man's most basic needs: a good and decent roof over his head.