Evening star., 1933-09-23
U.S.L0ANS SOUGHT
BY HOME BUILDERS
Direct Grants Would Aid
Crippled Industry, Realty
Boards Maintain.
tContinued From First Page.)

lion homes.
Home construction, with its large
proportionate outlay for labor costs,
and its division into a multitude of
small contracts, would do more than
any other type of construction to dis
tribute widely both new employment
and new credit. it is pointed out. The
Government might act as mortgage
lender on new homes for short pc
riod, the loans to be long-term amor
tized loans, the association suggests.
Loans such as are asked could be
made either through the Public Works
Administration, the Reconstruction FL
nance Corporation. or both. They should
be at fair competitive interest rates, SO
as not to injure the savings institu-
tons or retard their ability to resume
normal functioning.
Important action on the subject OF
loans for housing and home building
Is expected soon.
w. c. Miller of this city, president OF
the association and Herbert U. Nelson,
Chicago, its secretary, together with
members of the special committee now
negotiating a general code affecting
real estate, represented the association
in the conferences, which presented
new. aggressive platform of Federal
action for encouragement Of home own
ership.
Further Steps Outlined.
Further important Federal action
called for to safeguard projected new
home building includes:
l. That regulation covering mort
cages under the Federal securities act
be simplified and clarified and that
no attempt be made to supervise and
regulate the ordinary small home mort
gage. The investor has always been
we'll protected in this field, and always
is in position to protect himself. the
association says. The present resIla-
tions, issued by the Federal Trade
Commission July 81. introduce num-
ber of new uncertainties which. unless
removed, will retard the resumption Of
normal mortgage lending on hcmes.
2. That care be exercised to avoid
ct this time any sharp increase in home
building costs such as would be entailed
in some of the codes and regulations
now before the Recovery Adminlstra-
ton
The association asks that the hone
building business. which if it is to pro-
duce well planned neighborhoods or if it
Is to be economically conducted must be
linked closely with the development Of
the site. be permitted to come under
real estate rather than under the code
proposed by the Construction League.
If home building has imposed upon 1t
the code proposed by the Construction
League. costs of home building may be
approximately doubled, the association
asserts. The latter code. framed es-
sentially to fit the construction condi-
tions Of large downtown structures, is
inapplicable both as to wage scales and
other regulations to small home build
ing. conducted sometimes by the owner
himself over years timex requiring
less specialized skill than does the sky
scraper type of construction, and car
ried on by the same crew employed at
of seasons in land maintenance work.
If home costs are steeply increased
1t would be many months before mort
gage investors would have confidence
in any drasticelly changed price levels,
the association points out.
A memorandum which has been
the basis of the informal discussions
with various officials embodies the sug-
gestion of the association as to how di
rect loans proposed for home builders
might safely be made. The memorsn-
dunn as addressed to Robert D. KohD.
head of the housing division of the
Public Works Administration. follows:
1T is the opinion of the undersigned,
representing the National Association
of Real Estate Boards, that there are
q considerable number of cities and
towns where a moderate amount of
home building for purpose of sale
could be undertaken at this time with
good results in the matter of re-em-
ployment. Assuming some continued
Improvement of business conditions,
we believe that the real estate market
will absorb from 10000 to $4,000
low priced and moderate priced homes
coming Winter and Spring season Due
to present lack Of first mortgage funds
from usual sources, use of public
credit is necessary if any home
building is to be done soon.
I'VE suggest that loans be made for
home building on the following condi-
tions:
Il. Loans to be only to individuals
and companies able to show good busi-
ness standing. successful experience,
and high quality of past work
%. Homes built to be sold by the
builder under appropriate lease or con-
tract arrangements and title to be held
by the builder as security for the ad-
vhnces from the Government.
"3, Loans to be made up to is years
and to be amortized to SO per cent of
original amount at maturity.
a. Building sites should as far as
possible be contiguous and arranged in
accordance with a community, neigh
borhood or a group plan.
IS. Preference to be given to prof.
ects in which no extensive land assem-
bly, IS necessary.
$4,000 Site Limit Urged.
"6. Sites should not exceed $4,000 in
the final sales price to the home buyer,
except in very unusual cases.
81. Home sites to contain not less
than 5000 square feet or have less than
40-foot frontage on the street.
IS. Preference to be given projects
where street improvements are already
installed and utilities are Immediately
available.
80. Sites to be restricted for single
family dwellings for IS years and until
owners by majority agree to change.
10. Preference to be given projects
where home owners are organized for
maintenance of neighborhood amenities,
control of architecture, and protection
Of neighborhood values
I'll. Value of improvements to be at
least two and one-half times the value
Of the site.
"12. Dwellings to be single family
free standing, modern. we'll built and
Of good design
"13. Home builder should make rea-
sonable showing as to need and proba-
BILE market for dwellings and be able
to provide Junior financing.
"a. Building lines, side yards and
percentage of land coverage should be
In keeping with the best practice Of
the community"