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Mr. Sexton Pag# Two Mareh 30, 1943 These houses eould hare been Tory nicely used a year or eighteen months ago but all Indications in this terri­tory are that the peak of the "boom" has been passed. We conferred with local FHA officials and were advised that the National Housing Administration has deoreed that no more commitments would be Issued for the Las Yegas area. This however as I understand it does not dispose of the matter beoause there is always a possibility priorities previously issued by the War Production Board may be revived and additional houses built by parties who decide to "take a chance" even though there is no market for their houses after completed. The result will be, I am told, that houses now renting for around fifty dollars a month will have to be redueed to thirty to compete with the available new houses; and that we can expect a large number of the old houses in town will be vacant. This is of course an unhealthy condition for the welfare of any city and one which we wish to guard against. When there was a real need for Defense houeing in Las Vegas and FHA commitments were contingent upon the ability of the Water Company to adequately supply the proposed new homes, we plaoed Rule 9-C in effect to make this possible. Now that there is no longer a definite need for it we wish to abrogate the rule. I would like to discuss this with you if you expeet to be in Las Yegas in the near future or if that is not included in your itinerary Messrs. Bennett, McNamee, Polger and I will come to your office at Carson City. However we have other data here including the labor ohart for McNeil Construc­tion, who are rapidly concluding their Job and now reducing employees, the number of men employed by Basic Magnesium, number of new dwelling units proposed or actually under con­struction at the Plant and similar pertinent data, Yours very truly, WALftA ft."SKXCKBT