Box 5, Folder 11, Document 106

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A source close to the House Committee said that members who
attacked the measure viewed it as a frill in light of proposed
Federal spending cutbacks of $6 billion. He also cited the difficulty
of defining "new communities," as opposed to housing and commercial

On other items, the Committee followed the recommendations
of its housing sub-committee. It tentatively approved an increase
from $1,500 to $3,000 in the maximum rehabilitation grant for low-
income home owners, compared with an increase to $2,500 as proposed
by the Administration and approved by the Senate.

And the Committee okayed'2 related amendments which would
provide rehabilitation loans and grants to home owners in areas
of substantial blight outside urban renewal and code enforcement
areas and would authorize rehabilitation assistance to home owners in
deteriorated neighborhoods whossproperties are uninsurable under
proposed riot insurance legislation.


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