South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-09-13
by J. O. Lundy.


This seems 20 be- a question Of the
past IN the United states. but in
Canada government aid. 90 "a limited
extent. h. still extended. Real estate
men in the United States are be
lieved 20 be Overwhelmingly in favor
Of private initiative IN building Oper-
atious. But fro.n whatever angle
the subject may be viewed the ex-
periehces Of Canada viii be interest
ing J. .. Lundy. Windsor, Ont,
secretary OF the Border Cities Real
Estate board. who has been identi-
fed with this government work in
Canada. contributes 10 Journal read
ers the following details concerning
tho building OF homes by the dOmin
iOn.1
Many OF the Canadian boys. who
lad teen over on the other side dur
Ing the war. came back with War
Brides" There was no place TO
house them. great shortage OF
houses existed in towns and cities
throughout Canada The supply
-rav have been normal when the war
broke out. but when the war &C
tivitics got well under way and the
various Industrial plants everywhere
throughout the Dominion began the
manufacture Of war materials there
" as "a steady shifting Of farmers and
farmers sons 20 the cities 10 engage
iu this manufacture for the needs OF
vnr. This created and intensified
the scarcity OF houses and IL was the
daarth OF houses FOR the newly mar
ried soldier boys that gave the i'm
petus 20 the Dominion Housing Act
of 1919.
Aid started ut Toronto.
hrNHr C.
ing aid. however. Is not entirely new.
Four years before the war started
there was a shortage OF houses In
Toronto. and through tho efforts OF
some patriotic citizens Of Toronto
an act known as the Ontario HOus-
ing Act became effective, which en-
abIed housing companies 20 build IN
the city and 70 procure loans, up 10
IS percent Of the cost OF land and
building. through the municipality.
the building company advancing
only Is per cent. The companies
thus operating under the Housing
act were 70 a certain extent philan-
thropic. as the profits 10 be derived
from their capital invested was linn
tied 10 s percent. The municipality
in which the said company operated
guaranteed bonds or debentures
which provided the So percent loans.
Through the operation Of such COM
panies 4 great relief was effected IN
the shortage OF housing accommo-
dation.
Passage of Housing Act
In 1919 the Dominion parliament
raised the Housing Act and set aside
$4,000. 900 for housing purposes
during the year 1910, the money to
be loaned to the different provinces.
and these provinces in turn TO loan
the amounts allotted TO them 10 the
various municipalities IN the prov
fncCs coming under the act.
The Province Of Ontario created
bureau of municipal affairs. which
was put in charge OF director In
chief over all the housing operations.
The services OF a good government
architect were secured. copies of the
act were distributed. together with
suggestions. plans Of houses. etc, to
the various municipalities and II was
stated that II any Of the cities or
towns desired TO take advantage Of
the act they should create housing
commission 10 receive applications
from individuals for this extended
aid in the building Of homes.
Only Two Types Of Houses
only two types of houses were
provided for. one Of frame construc-
ton 20 cost $4,000. and one Of solid
construction. 10 cost $4,000. The
applicant must invest at least $500
in the pament OF a lot IL was esti-
mated that the Eratuities granted
TIE returned soldiers would afford
them the means for the purchase
Of "A lot The borrower was given
twenty years IN which TO pay back
the loan. The interest paid on
these government loans was . per-
cent and the borrower was privileged
10 pay 800. or any multiple on the
principal AT any interest payment
date
Three, leading Features OF Loans
Three leading features Of the loans
were these. First the applicant for
a loan must be British subject and
must build the home for his own in
dividual occupation: second. the
Housing commission was empowered
20 acquire property by condemnation
proceedings. on which to build
houses for sale 20 returned soldiers
or other citizens Of moderate means.
The houses built on land thus &C
quirCd by the municipality were sold
To the individuals. Qualifying as
above. bv pGyment OF a small initial
amount and monthly payments
spreading over twenty years. and
third Housing companies were per
mitted TO construct under the Hous-
ing act IN the same wa and manner
as under the previous acts; namely.
putting M : < percent OF the total
cost OF IN ebuildlng and land. the
Municipal Housing commission
granting loans for the balance Of IS
percent. These houses were 10 be
erected and sold on easy terms TO
The applicants and the building COM
TSny was limited 10 6 percent on the
capital invested. Plans on all three
schemes were first submitted 20 the
local Housing comm issiOp and IL ap-
proved were then sent to the provin-
Cial director % housing for further
approval When both the applica-
tion and The plans were finally ap-
proved. the contracts were then let
either by the individual. the commits
s'oner OF the Hou- 'uE company as
the case may he Money was then
advanced hv the commission 20 the
contractor from time 20 time during
the course OF construction. All ad-
NarceS however were first approved
by the municipal building inspector
who supervised all construction on
behalf ~ both the municipality and
THO building Comnany.
Fund Of 1919 Nearly Exhausted
Nearly al the $4,000. 600 appro-
rriated by the Dominion for house