P.M. BRIEFING : Bids Opened on Housing Funds

WASHINGTON —  The government today invited applications for the first phase of a new program in which savings and loan institutions will compete for nearly $80 million to be used to promote affordable housing through cut-rate loans.

Under the program, included in last year’s legislation to bail out the S&L; industry, the $78.7 million will be used to buy down the interest rates on certain housing loans, making the financing affordable to those whose incomes otherwise would be insufficient to make monthly payments.

Housing and Urban Development Secretary Jack Kemp, who announced the program in his capacity as chairman of the Federal Housing Finance Board, said the loans made possible through the new program should add 20,000 units to the nation’s stock of low- and moderate-income housing.