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Government Housing Policies, Practices #12733

ABC Evening News for Wednesday, Jan 06, 1971
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(Studio) House committee reports abuses in Federal Housing Administration plan to help low, moderate income families buy houses. Speculators, not customers, benefit. Old houses sold at large profit; new houses shoddy.
REPORTER: Harry Reasoner

(Paterson, New Jersey) Condemned tavern sold to speculators for $1,800. Speculators sold building to Mr. and Mrs. William Gurley as a house for $20,000. [Mrs. William GURLEY - said they'd make certain improvements; only made a few of them.] Because alterations unmade. building again condemned last week
REPORTER: David Snell

(Seattle, WA) Housing project homes shoddily constructed. Heaters scorch walls. Floors sag. Poor drainage. [Mrs. Donna TETZLAFF - bathroom drainage goes under houses, out electrical outlets, in light fixtures. Floors are trampolines. Houses settle and crack windows. Wall boards snap from walls. You can't give these houses away.] Federal Housing Administration left with empty homes built with tax money. Representative Wright Patman leads investigation. Housing Secretary George Romney as unhappy with Patman as with investigation findings. [ROMNEY - says agreement that committee wouldn't release report until findings looked into by Housing Department not kept. Reports inaccurate, misleading, incomplete.] Patman says there was no such agreement; says Romney more interested in attacking Congress than speculators.
REPORTER: Brooke Stanford KOMO-TV Howard K. Smith

Reasoner, Harry;
Snell, David

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