American Jews to Finance $27,000,000 Housing Plan in Israel

Plans for a $27,000,000 housing program for Israel’s newcomers to be financed by the gifts of American Jews were revealed here today by Dewey D. Stone, national chairman of the United Israel Appeal, in a report to the organization’s board of directors. The 16,000 unit housing project will be implemented by the Jewish Agency with funds derived from the United Israel Appeal, a major constituent of the United Jewish Appeal campaign.

Warning that the accelerated tempo of immigration may turn Israel’s critical housing shortage into an acute emergency” Mr. Stone emphasized that speedy implementation was a crucial factor in assuring the success of the project. He revealed that because of the urgent need to transfer Hungarian and Egyptian refugees to Israel, the Jewish Agency had already been compelled to reopen one of the transit camps which had been in operation during the peak years of mass immigration.

The U.I.A. chairman reported that prior to 1956, the financing of immigrant housing projects had been primarily the responsibility of the Israel Government. However, because of other pressing demands on the Israel treasury, the public housing program had been drastically curtailed and in the first half of 1956 new construction declined by 30 percent as compared to the first six months of 1955.

To bridge this gap between the increase in housing needs and the sharp decline in new construction, the Jewish Agency, with the aid of UIA funds had allocated some $14,000,000 for building activities in 1956. Mr. Stone said. He added, however, that this figure had proved “grossly inadequate” and out of 55,000 new arrivals during the past twelve months. over 15,000 had again to be accommodated in hastily rebuilt tin and wooden huts.