New-York tribune., 1920-11-29
City Club Asks
Tax Exemption
To Aid Building
Board of Aldermen Urged to
Pass Ordinance at Once
Backing Up Plan Made
Permissible by the Law
Cheap Houses to Benefit
Holds Type Would Be More
Attractive to . Investors
and Fill a Greater Need

Prompt passage of an ordinance
winch will exempt from taxation the
Dunoing Of moderately priced apart
ment buildings is urged in - letter
made public yesterday by .he civ
Club. The letter is addressed IN +he
Board of Aldermen.
IL Is now two months since tho
statute was recommended by the Lock-
~ooo committee. passed by the Legis-
azure ahd>slgned by Governor Smith" !"
says the club. "If spring BUILDING is
to be encouraged prospective builders
should know definitely whether the
local authorities will accept or reject
the plan Of exemptions made permis-
sible by law"
Nelson S. Spencer. president of the
ciub, discusses a measure now pending
before the Aldermen. 1t provides for
exemptions on a single family house
valued at not more than $4,000. for
a wo-Iamlly house valued at not more
than $4,000, and to a multi-family
rouse valued at not more than $4,000
therein, provided that the rentals are
not to exceed $15 month for each
habltable room.
Concerning the measure the club
says:
From the point of view of admins
tration, any limitation of the eXemp-
tons based upon rentals rather than
upon assessed valuation would be very
Objectionable. The whole machinery
and experience of the Department of
Taxation fits it for judging the proper
cmptlons from year to year depend
upon the rentals actually received
would result in all sorts of evasion
and confusion.
Every Type Is Benefited
"The chief object, of course is to
relieve the pressure all along the line
by securing accommodations for d
laSge number of families. This purpose
would be accomplished if the first por-
tlon of the section is sustained. Nc
new building would then receive q
greater exemption privilege than would
be represented by a basis of $4,000
OF assessed valuation for each family
accommodated.
This first portion has at least the
merit that it grants some measure OF
ton Of property set forth in the stat
ute and III the terms of Section l Of
the proposed ordinance. Very expen-
sve buildings would nevertheless gel
only relatively small exemption. Ir
comparison with expensive buildings
the cheaper type Of buildings woulc
be more attractive to investors thar
they are now. This form of Limitation
has also the advantage that ii builder
seeks to come within its provisions
but because Of unexpectedly high costs
his building goes somewhat beyond
the figure mentioned, he will still ge'
an exemption Up to $4,000 per family
provided for"
The Housing Company, of Boston
yesterday made public the results O.
research concerning what should con
stitute q reasonable return on invest
ments in homes. The company asserts
that under present conditions 15 pei
cent or more is necessary for a re-
munorative yield.
'The country day is faced with {
shortage Of homes for 100000 fami
lies" says the report, 1.-THE population
is congested beyond She highest poin
ever previously reached There are a
present approximately 12l families fo1
every 100 homes In view Of the rapiC
influx of immigration, the congestion
obviously must increase unless The
construction Of houses is speedily re
sumed on an extensive scale"