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Form

F.R. 468

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Date

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MESSAGE:

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Message delivered by.



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EXECUTIVE OFFICE OF THE PRESIDENT
BUREAU OF THE BUDGET
WASHINGTON. D. C. 2 5

JAN

5 1945

llty- dear Mr* Eecles:
The National Housing Administrator, in his letter of
December 29, copy of which is attached, has requested advice as to the relationship to the program of the President
of certain testimony which he proposes to present in connection with his appearance, beginning January 9, before
the Subcommittee on Housing and Urban Redevelopment of the
Special (Senate) Committee on Post-war Economic Policy and
Planning*
For your information X am transmitting herewith my
reply of January 1, stating, in effect, that testimony
recommending that NHA, consisting of the agencies and
functions consolidated by Executive Order No* 9070, be
made a permanent establishment of the Government, and
that i t be authorized to conduct housing research, would
be in accord with the program of the President*
Very truly yours,

Dire

Honorable Marriner S* Eecles,
Chairman, Federal Reserve Board

Enclosures (2)




January 1 1 , 1945.

Honorable Harold D. Smith,
Director,
Bureau of the budget,
Washington 2$, D. C*
Dear Mr. Smith:
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This is to acknowledge your letter of
January 5*transmitting a copy of the letter of
December <S from the National Housing administrator as well as a copy of your letter of January
1 in which you advise that the recommendations
embodied in Mr. Blanford!s letter are in accord
v*ith the program of the President.
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jsls I have been requested'to testify before the Senate Subcommittee on Housing, I appreciate
your transmitting this material for my information.

Sincerely yours,

M. S. Eccles,
Chairman.

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NATIONAL HOUSING AQ3HOT
Washington, D. 0.

Office of the Administrator

December 29, 1944

Mr. Harold D. Smith
Director, Bureau of the Budget
State Department Building
Washington 25, D. C.
Dear ir. Smith:
Beginning on January 9th, the National Housing Agency will be
participating at the request of the Subcommittee on Housing and
Urban Redevelopment of the Special Committee on Postwar Economic
Policy and Planning in extensive hearings on the subject of
postwar housing.
Broadly speaking, we intend quickly to sisunarize the war housing
job; to set forth the role of housing in our national, local and
individual economy, both from the economic and social viewpoint;
to describe the condition of the housing supply of the American
people before the war; to outline an estimate of housing needs
for the decade 1946-55, again in terms both of economic and social
needs; to appraise the country*s present tools and resources, both
private and public at all levels of Government, for meeting these
needs; and finally to delineate what improvements in existing
tools or development of new tools may become necessary more adequately to meet the need.
In this last connection, we shall naturally be entering discussions
in areas relating to possible Federal legislation. Particularly,
we have been requested by the Subcommittee to give our views
relating to the organization of the housing activities of the federal Government, the Committee presumably having in mind that the
first step is to get the shop in the best possible order for the
resumption of postwar production.
On this subject, our recommendation will be that the consolidation
of 16 or more housing agencies and activities into one National
Housing Agency, by Executive Order 9070 on February 24, 1942, has
justified the reasoning which prompted the consolidation, - namely,
that the housing activities of the Government represent one compact
body of Inseparably related methods, problems and goals vhlch can
be more effectively administered under one general supervision and




- 2 Mr. Smith,
direction than through a number of separate agencies. Consequently,
we "believe i t would be unfortunate i f the housing a c t i v i t i e s which
are now tied together should be separated or redistributed after
the war; we believe that the prospect of this separation i s a
divisive and uncertain force which operates against that unity
necessary for commencing cooperation at a l l l e v e l s toward the r i ^ i t
kind of postwar housing program; and therefore we believe that i t
would be a healthy Influence at a l l l e v e l s i f the Congress should
decide in I t s judgment to ratify and confirm the consolidation of
1943 at the e a r l i e s t feasible time.
Naturally, I ma. interested In obtaining the views of the Bureau of
the Budget on this subject, in advance of the hearings i f that be
possible.
Xn addition, we contemplate recommending that the National Housing
Agency receive statutory authority to engage in research relating to
certain technical and economic aspects of the housing problem, and
also to a s s i s t the communities in certain techniques of housing
market analysis and distribute to them certain housing information
founded in nation-wide trends. We believe that these a c t i v i t i e s
w i l l meet a need that cannot be supplied elsewhere and w i l l powerfully expand the capacity of private enterprise to serve more of the
housing market, thus reducing the relative need for various types
of Federal f i s c a l assistance*
On this matter a l s o , I shall much appreciate your views.
The pending hearings w i l l undoubtedly lead, in one way or another,
to a consideration of the various statutory tools lodged within the
National Housing Agency, such as BHA mortgage Insurance and the
TP&X formula for slun clearance and low rent housing, and may lead
also to a consideration of various new statutory tools that we or
others w i l l be proposing. Of course, when our thinking on this
subject shapes up in sufficiently concrete form, we shall be d i s cussing i t appropriately vrlth the Bureau of the Budget.
With kindest regards,

Sincerely yours,
(Signed) John B. Blandford, Jr,
Administrator
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BXECUTIV3B-OFFIG3 OF 'SHiS PRBSIDBNT
BUR2AU OF BUI BUDGET
Washington 25, D. C.

January 1 , 1945

Ky dear Kr. Blandford;
X have your l e t t e r of December 29 r e l a t i v e to your
forthcoming appearance, beginning January 9 , before the
Subcommittee on Housing and Urban Redevelopment on the
Special Committee on Post-^ar Iconomie P o l i c y and Planning.
In your l e t t e r you have indicated a d e s i r e to recoaend,
i n connection with your testimony, that the National
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Housing Agency be made a permanent establishment i n the
Government and, f u r t h e r , that MA be authorized to engage
in research r e l a t i n g to c e r t a i n t e c h n i c a l aspects o f the
housing problem.
Please be advised, in response to your inquiry, that
those recommendations, as further o u t l i n e d i n your l e t t e r ,
are in accord with the program of the P r e s i d e n t .
Very truly y o u r s ,
(Signed) HAROLD D.
Director

M m A . - Blandford, Jr,
Administrator
National Rousing Agency