FIRST, I shall discuss some significant aspects of the Housing Act of 1961. When President Kennedy signed the Housing Act of 1961 on June 30 he called it "the most important and farreaching Federal legislation in the field of housing since the enactment of the Housing Act of 1949." This legislation has given us tools long desired in the housing field. We needed these tools to meet many problems that were not adequately provided for under previous federal legislation. Let us look at the most important of these new tools and examine their potential. One housing problem easily understood and which has received popular reception by Congress and government officials at all levels is making adequate provision for housing for our senior citizens. The Housing Act of 1961 makes a real contribution to the wellbeing and comfort of elderly persons. The direct loan program for housing for the elderly was increased from 50 to 125 million dollars, and consumer cooperatives and certain public bodies are now made eligible borrowers. Also, where the rents of units occupied by the elderly are so low as to threaten the solvency of a low-rent public housing project, an additional federal subsidy payment of up to $120 per year per unit is authorized. So, we have a greatly enlarged opportunity to provide good privatelyowned housing units for elderly persons with direct loans from the federal government, and we are able to accept a greater number of elderly persons with minimum incomes in public housing. Already, a number of nonprofit groups, including churches and labor unions, are developing housing to meet the needs of our elderly citizens more adequately. Since the passage of the 1949 Housing Act, it has become increasingly urgent that a positive program be developed to assist in providing good housing for low-, middle-income familiesthose whose incomes are just above the admission limits to public housing but below that required to pay rentals for standard private dwellings. The Housing Act of 1961 makes a major contribution to this area of need. A new FHA provision, called Sec. 221(d) (3), creates a "sub-market interest rate program." Under this program FHA can insure mortgages to certain nonprofit or limited-profit developers at a rate as low as 31/8 per cent. Furthermore, FHA can insure the mortgage with reduced insurance premiums or no premiums at all. In sales housing for low-, middle-income families, under the FHA program, the dollar limits on one-family houses are raised. Down payments can be as