Evening star., 1932-11-05
HOUSING LOAN F0ES|
ASK FOR HEAR|NG|
Government Aid Opposed by
Realty and Mortgage In
terests in New York.
Announcement of the decision of the

Announcement of the decision of the
Reconstruction Finance Corporation to
approve loan for development of a
large low-rental apartment project in
New York City, provided certain con-
ditions are met, has brought increased
protests from groups opposed to Gov
ernment subsidies for housing, accord
ing to reports from Gotham.
A wave of new protests comes from
realty and mortgage interests in New
York and requests have been made that
the finance body hear opponents before
the So, ,957, 900 loan actually is advanced.
Other Projects Planned.
Meanwhile, organized groups and in
dividuals favorable to plans for slum
elimination and replacement by new
low cost housing units are fostering the
planning of projects in other jurisdic-
tionS. Among these groups are the
American Institute of Architects and
the American Engineering Council.
Opposition to governmental loans or
subsidies to State housing corporations
was voiced last week in a statement
by the Housing Committee of the Ma
tional Association of Real Estate
Boards
In regard to the New York housing
project. according to a report to the
Wall Street Journal, the board of the
Reconstruction Fiance Corporation de-
cided to approve the application Of the
Hillside Housing Corporation as an eX-
perimental measure.
There is strong support for the loan
application for the Bronx project and
the State already has legislative ma
chinery for meeting general require
ments of the provisions of the emergency
relief act, under which such r. F.. c.
loans may be made. Opposition to this
loan is based on the fact that the pro-
ected new buildings, to be of four and six
stories, renting at approximately S11
per room, are to be erected on vacant
land. The new buildings. it is argued,
will not replace slums and therefore
will add to the surplus of vacant New
York apartments.
Studies of possible projects for slum
clearance and new low rent housing
construction should be started at once
In sections throughout the country, it
Is declared in statement issued today
by the American Institute OF Architects.
Discussion of slum clearance projects
has been given great stimulation in re-
cent months, due to enactment of
legislation at the past session of Con-
gress authorizing the Reconstruction
Finance Corporation to make loans for
such projects.
Studies of proposals should not be
delayed until State legislatures establish
regulatory machinery required by the
emergency relief act, it is contended
by Abram Garfield, president of the
Cleveland chapter of the American
Institute of Architects.
Has Housing Act.
New York State alone had prepared
itself and has a housing act, giving
certain privileges and exercising the
control that the State should require
when granting privileges" Mr.. Garfield
declares in the statement issued by the
institute.
Ohio has followed with an act
enabling the State to exercise control
and granting one important privilege,
that of condemnation. Other States
may fellow this lead when their leglsla-
lures meet.
The fact of the enactment of such
q housing law is a long step forward,
bur will not Of itself set things going
The board of the Reconstruction FL
nance Corporation will not accept thes
interest and intention of a building
corporation as sufficient evidence of
their probable success.
An architects plan even if in
cooperating all of the requirements of
recognized good practice will not be
enough. Any proposal brought to the
board of the Reconstruction Finance
Corporation should include many facts
and estimates, which are available but
are often overlooked.
Inventory and Analysis.
There should be statement of the
population of the district and its
changes; its vacancies, the number and
size of building permits during the past
10 or 20 years. The number and con-
dition of mortgages and foreclosures;
the character and foot frontage of
stores and their history during the past
two or three decades This involves a
complete inventory of the real estate
and a careful analysis and interpreta-
tion of the facts.
knowledge of these facts and many
others should be part of any report
to private investor and it has always
been important, but the architect, as
rule. has taken instructions from his
client and ha saSsumed that the clients
judgment was sufficient evidence of
probable success. The reclamation of
old residence districts is new problem
and failure at the beginning will act as
a deterrent more discouraging than
past indifference.
1.-The loans are very important, but it
does not solve the whole problem. This,
along with State laws, gives help
without which no start could be made,
but it does not free those who are in
vesting money from all danger of
money loss.
Architects and those who are asking
for Reconstruction Finance Corporation
assistance must be prepared to answer
q searching examination, and this can
not be achieved without a thorough