New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-09
Hoover Asks That People Be
Lifted Out of Renters Class
Sends Message 10 Realty Convention. at Syracuse
Urging Increase of Home Ownership:
Problem Is Community One

syracuse last week urging on the
teaity men gathered there from every
corner of the state the necessitv Of
solving the housing problem, the value
OF community cooperation and the
need OF more home owners.
the housing problem, he said. was
community one.
Here is Secretary Hoover's sncc;a1
message to the real estate men of the
state: '' VI ''e
There is an isue involved in our
housing problem far greater even than
sle present temporary shortage of
housing facilities throughout the
country-it is the issue of home
ownership. 0'"o
he census returns demonstrate
nat our percentage of tenantry is too
h1gh and we are to have happv
contented and stable population we
must increase the numbers of those
VINO own their own homes.
with the increase in the construc
ZION OF houses will come an increase
IN employment, the general revival of
the construction industry and imnTove-
ment of business conditions.
Make Home Buying Attractive
The fundamental problems revolve
~.'N VIC 1cQuCliOn OF costs and
elimination of waste in construction
and making credit available upon such
terms as are attractive to installmont
purchasers with limited incomes. Tho
proolem varies with every communitv
ana must be based on the primary ar.
curate survey of the conditions in that
particular community. Such SURVEYS
ana the remedies necessary to induce
nome ownership can only be determined
oy cooperative action among those
fractions of the community vjtallv in
terested in the problem. These frac-
tlons are the financial institutions do
ing business locally, the real estate
men, the building material and con-
structlon industries, labor, and the
public at large which is interested in
the building of strong social founda-
ton. N'e''0"-
In nearly all communities there is
failure to agree on facts. Some main
tam that money is not available; some
that no shortage exists; some that
buildings cost more than twice what
they did before the war; others that
they cost not over so per cent more. |
neiore any progress is made it Is nec-
essary that the facts be determined. |
and to do this it is essential that a |
survey be made by the different ele.
ments of the population.
- q OhOdu survey the dlfhcult1eS |
IN the country as a whole, and the |
methods taken in their solution, GER
tain facts need to be determined for
each community:
I'D determination of the cost of
building different types of homes.
"(2) determination of the ratio Of
present 20 pre~war costs, with the real
ization that costs will not for many
years return to the pre-war level.
A n !. A.
layers Of income in q community In !.
their relation to the cost of homes to
be erected.
40 determination OF the finances
available.
"(5) A determination Of the availa-
bility of real estate as regards trans
portation az we'll as the righteousness
Of the price.
go A determination of methods bv
which excessive costs and charges can
be eliminated.
Financing Is Crux of Problem
THE following notes on constructive
handling of the problem are the result
OF a canvass of the successful efforts
being made in different communities.
I'm the matter o financing building
for purchase on installment the real
crux of the problem lies between mort |
gage advances that are acceptable to
the savings banks or similar institu- |
tions-50 per cent to 60 per cent of
their value-and the necessary initial
advance to enable home builders to
start-l5 per cent to 80 per cent.
"A pr mary security, first mortgage,
Is available in most communities at /
reasonable rates of interest. If there
ia any shortage Of such advances, pres
sure should be brought upon saving !
banks ineu rp nca rom IN nj nd 90 <s,
departments Of commercial institutions
TO devote certain proportion Of their
funds to this purpose.
The margin between the first mort !
gage and the cash payment IS usually
represented by q second mortgage, !
which gains in its security by monthly
repayment on the part of the home
security If there is attached to this
second mortgage the guaranty of the
contractor and the builder
The heavy discounts exacted on sec
ond mortgage notes levy upon the home
builder interest rates from II to 20
per cent for this portion Of his ad-
vance, and are an undue tax upon him.
"The spirit Of the community has
been called upon with success to pro-
vide fund for second mortgage pur-
poses az reasonable rates Of interest,
and it is we'll worthy Of consideration
IN every community.
Study Local Situation
"In the matter Of elimination OF
waste in building, careful local studies
need 70 be made as TO the character of
building material that can be best
adapted in price and other qualifca-
tons 70 the problem.
Furthermore in order that housing
may be given the advantage ard econ
% BlVh Sklli in doe "A
20 charged nigh fees. architects have
very successfully established COOPER
atFe small house service bureaus such
a. nat operating in Minneapolis.
otoer ecor omies in building can be
induces by steady remedy Of building
fpde5 which restrict economic con
struction. The Department OF Com
'nercs advisory committee on building
codes - prepared to furnish technical
adYlce in this field
Community Problem
"Beyond this, cooperation between
8Dppliers Of material contractors and
.nbor to remove limitations on oTert
and 70 give more regular employment
ana community agreements 10 eliminate
luri sci ctional and other strikes, ~ CON
tribute TO reduction in cost. Even un-
der present price levels unity Of action
N this direction can bring the cost Of
home building 10 figure farly COM
mepsuratc with prezcnt incomes.
TN order tbat al these thirgs NAV
bf accom- 3liHhed. definite community