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MIBLIC AND POLITICAL ACCEVrANCE V. EFFICIENCY AND COST SAVINGS: In choosing the pregram technique for an established objective, it is not unusual for the choice to be made on the basis of what the affected private sector or what public opinion may accept. This is done even though that may not neces- sarily be the most equitable, efficient or least expensive operation in either the short or long term. For example, ever since 1950, direct federal loan programs for a broad range of housing have been introduced in the Congress and rejected or ignored, a paramount reason being the adverse reaction of private lending institutions. Alternatives that are used include the indirect and more complicated procedures of the government's secondary marketing operations which provide the subsidy but, in addition, a financial yield to private lenders. The highlight of this approach, of course, was the Section 221(d)($) program, where the lender's profit was chiefly through servicing privileges and construction financing opportunities with virtually no private risk. For example, the forms of subsidy which are less overt and visible have often been preferred to direct and identified subsidy payments. Examples include the disguised subsidy provided through the below market mortgage rates uader Section 221(d)(3) and the Government National Mortgage Association Tandem Plans, and the similar subsidy provided by the FHA through its financing arrangements in which the subsidy finally surfaces in the form of an appropriation for restoration of losses incurred by the Rural Housing Insurance Fund. POLITICAL ~RHALITY V. CONSISTENCY: Major inconsistencies in housing legis- lation flow from the known position of the Congress toward benefiting certain groups as compared to others. Direct loans at low interest rates to famers were accepted and non-controversial at an early time when such assistance to low-income families generally was extremely controversial. Similarly, the absence of premiom charges for veterans, plus other benefits, under the VA loan guarantee program represented a special approach for one group only. Implementation The housing problems of Santa Aha will not be solved in the next few years nor will the housing needs of today's population be taken care of over- night. As preceding pages have revealed, housing is a complicated and com- plex set of inter-related matters. To meet the housing demands of the future, the City - in addition to the County, State and Federal government - must prepare long comprehensive programs to deal with construction, employment, NNNI~