The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-03-06
NO CHANCE NOW
FOR REVIVAL OF
H0MEBUILDERS
Bonds Cannot be Issued for Sew
eral Years Under the Law,
Manager Says
MUST MAKE UP DEFICIT
Legislative Appropriation and
d, Change in Law Held Neces.
sary to Continuance

No bonds of the Home Building
series can be issued for several years
under the terms of the law govern
ing the Home Builders Association, in
the opinion of F. Do. Diehl, manager OF
the association. There appears to be
no legal manner in which operations
could be resumed In the Home Build
ers Association until the legislature
has revised the laws, he believes.
The next legislature also probably
will have to wrestle with the prob
lem Of making up the huge deficit
which the Homebuilding Association
now faces.
There are only three ways provided
by the Home Builders law of 1919
for raising money, Mr.. Diehl points
out in report to the Industrial Com
mission on the operations of the as
sociation. These are: Q) By sale
OF bonds;N (2) BY appropriations; (3)
by payments of home purchasers or
derived from deposits made by them.
An amendment to the law, enacted
by the special session in 1919, how
CNCl, p1ONluCO C1ldL III lAAo1C6o6C AA~S
be issued until payments amount to
one-half the value of the property to
be mortgaged. Under the amortiza-
tion plan of payment, after the pur-
chaser has paid 20 per cent Of the
value Of the property before the
amortization begins, it would require
124 months, or 10 years and months,
before One-half of the amount would
be paid.
Ways to Obtain Money
Section 6, Chapter $50, of the laws
OF 1919 provided.
Whenever funds shall be available,
derived from the sale of bonds issued
by the State and delivered to the In
dustrial Commission for negotiation
to carry on the business of the Asso-
citation; or derived from appropria
tionsl made by. the Legislative Assem-
bly, for such purpose; or derived from
deposits received by the Association
as hereinafter provided; or derived
from payments made for homes by
purchasers thereof; such funds shall
be used, under proper regulations of
the Industrial Commission, for invest
ment in building or purchasing homes
within the state for members of the
Home Builders League, as such
Leagues are hereinafter provided.
The above section, in the opinion Of
Mr.. Diehl, provides only three meth
Ods Of procuring funds for operating
this department and that there is alb
solutely no provision of law, which
authorizes the officers of this depart
ment to execute notes in the name
of the department or procure loans in
the name of the department"
. The association, however, owes the
Bank of North Dakota about $413,OOO.
AS the association is unable to issue
bonds for several years the only way
in which the loan can be repaid is
from payments by the Home purclfas
ers Or by legislative appropriation.
Bond Limit Provision.
Chapter 80 of the amendments to
the Home Building law, enacted by the
special session of 1919, has the fol-
lowing limitation regarding bond is
sues.
provided, however, that no such
mortgage, note Or obligation shall be
sc assigned Ito the State Treasurer)
as security for bonds 50 to be issued
If the total amount remaining unpaid
and payable upon such mortgage shall
exceed one-half the value of the real
estate by which such mortgage, note
or obligation is secured, nor unless it
shall be a first mortgage upon such
real estate"
The loan of the Bank of North Da-
kota is for per cent, the interest
amounting to approximately $25,3S0
a year.
Under the law prohibiting the asso-
citation from loaning more than $4,000
to an individual home purchaser, the
amortization payment on $4,000 loan
would be s2S65 per month. There are
54 houses built by the association.
This would make the amount paid
s1,547.10 month, or $19,725.2O year
which the home purchasers would pay
the association. This limit, however,
1yoc not he