The Washington herald., 1920-11-21
STATE HELPS
BUILD HOMES
League in North Dakota
Formed to Buy Land and
Erect Homes.

Radical North Dakota, home of
the Nonpartisan League, has gone
into the home construction business
for its people, though as yet on a
small scale. This enterprise was
authorized in February. 1919, when
an act passed in the State legisla-
ture to engage In the enterprise OF
providing homes for residents OF
this state, and to that end to estab-
lish a business system operated by
the state under the name of the
Home Building Association of
North Dakota The Home Building
Association Is empowered to pur-
chase land and erect homes for
citizens who can advance ~ per
cent of the cost Of the house and
lot. After the home is completed
the occupant pays the remainder Of
the cost to the State on the amor
tixation plan.
Each applicant, says a Fargo cor
respondent of the New York Post,
Is required to become "a member OF
a home buyers league. consisting
OF ten or more citizens who wish TO
purchase homes through the me-
dunn Of the Home Building Asso-
citation. and no new member may
JUN Ohc VI lHCoC AC@6 ACo
the written consent of all the 9TH
ers. Every member of a league Is
liable for the obligations due to
the association from his league to
the extent OF Is per cent of the
price at which he secured his home.
This secures a certain degree of
collective responsibility and pre-
vents any one from securing the
benefits Of the plan unless he has
sufficient standing in his communi-
ty to obtain a limited Endorsement
from at least nine of his neighbors.
The plan in this particular is mod
eled closely along the lines of the
Federal farm loan act.
The maximum amount which the
State will put into any home is
5000 for a town dwelling and
$4,000 for a farm home, but il the
Prospective owner desires a moro
expensive structure he is allowed
to make additional expenditures
from his own pocket. Payment
may be made on a ten. fifteen or
twenty-year basis. On a $4,000
home obtained on the twenty-year
plan the occupant will pay S2S.6a
per month, and if he desires he
may increase the payments at any
NAn1c II HAuAlAplcS OA go anu iACKC G
by shorten the term of payment.
The State charges per cent on
the cost of the house and lot and
adds l per cent for :he cost of ad-
ministration during the first five
years of the loan; during the re-
mainder Of the period this addi-
tional 1 per cent is applied to the
reduction of the principal.
According to the original plan
the State was to obtain a revolving
fund by means of a bond issue to
enable 1t to start the construction
work. but the sale of bonds for this
purpose has been prevented so far
by litigation. The Home Building
Association had an appropriation OF
100000 for organization purposes
and it decided to devote a portion
of this to construction work. II
also secured a small loan from thu
State-owned Bank of North Dakota
With these funds 1t has pur
chased building lots in Fargo, Bis
marck, and Mandan. and has Sc
cured about forty carloads of build
ing materials on very Favorable
terms. About thirty houses ar,
now under construction in thes,
three towns, and as the monthly
payments by their occupants com,
in additional funds will be avail
able to start construction in othe
communities.
The houses are being erected ac
cording to several standard plans
but the association lays down NJ
requirements as to uniformity anC
only offers the standardized type
as a measure of economy.