The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-08-21
BISMARCK STANDS
TO BENEFIT FROM
HOUSING PROPOSAL
Need for New Homes Apparent
Here and Banks Will Advance
the Money
COVE RNMENT TAKING RISK
Guarantee Of Losses up to 20
Per Cent Has Effect Of loos-
ening Credit

other Nortn Oakota CITY, 6tAIloS IeHoy
to take advantage Of the national
housing act. passed by the last con-
gress TO stimulate the building In
dustry.
It needs new homes. The money is
available. Banks. lumbermen and
contractors are willing to cooperate.
All that Is needed Is for the right kind
Of people to step forward and say
I'VE want to build" The right kind
OF people. in this instance. means
merely those with the ability to pay.
First take the need. Bismarck is
one Of few cities in North Dakota
which do not now have an excess Of
houses. Few. If any, are empty.
Those which have no tenants are not,
usually, fit for human habitation.
Many occupied houses are 50 dilapi-
dated and run down that they fall
In the same classification. even though
they are "home" to the people who
live In them.
The reasons for this condition are
obvious. Location here Of govern
mental enterprises, from the home
OWA4CAO AOoA4 WI WI &VAO4A w WAC 3 E1Gtk4,
has caused an influx Of new citizens.
1t has placed housing facilities at q
premium. There are no vacant homes
and few vacant apartments. People
with rooms to rent usually are, not
slow in finding takers. Bismarck Is
urderbllilt.
Here's the Reason Why
A glance at our building history
shows the reason. The city has con-
tinued to grow, but new building has
not kept pace. In 1928, So new resi-
denceS were built here. They were
valued at $285, 400. In 1929, 50 new
houses were erected. They were valued
al $432, loo. But in the fiscal year end
irg June 80, 1894, only 10 houses, valued
at $50, AS were added to the assess
ment rolls. And this represented q
gain over 1881, 1882 and 1888.
In the meantime the city has UNI
dergone building phenomenon which
has helped to find places for the peo-
pie who want to live here.
Many homes have been renlodeled
into two-family residences. Basement
apartments have been constructed In
70 less than 68 homes, according to a
recent census by local builders. These
are In addition to new apartments
made by remodeling apartment
The introduction of gas heat is the
answer in many cases. Many house,
holders have found 1t feasible to fix
Up the coal room. remodel the rest Of
the basement and rent it on salts
factory basis. Some Of these are quite
satisfactory, others little more than
holes in the ground, but people are
living in all Of them because it is the
best they can do.
The reason for the national housing
act can be seen, however. by compar-
ing Bislnarck's statistics with those
for other and larger cities. Last year,
for example. only 100 new homes were
built in the entire city OF Chicago, &C
cording to John +. Flynn, reporting
for Golfers magazine. Is there any
wonder 1t was necessary to do son1e-
thing?
No Risk for Financier
The national housing act takes the
risk out Of real estate financing for
the banker and the building and loan
associations. In Bismarck all Of them
are willing to loan money now because
the government agrees to absorb all
losses up to 20 per cent. The view OF
every Bismarck financier Is that, II
he cannot make home loans and keep
the losses far below 20 per cent, he
ought to 60 out Of business, for the
law enables them to select their risks.
They are under no compulsion to loan.
II they don't think the borrower can
pay the money back they revert to .
well-kno'En habit and say mo-"
This brings up the question Of who
can expect to hear the banker say
''yes."
The requirements are simple. Any
man who, owning his own home and
wanting to make additions or repairs,
has q salary or other definite income
from whatever source, and is . good
moral risk. will find o welcome ut
the bank. II the home Is mortgaged,
the mortgage must Be in good stand
ing and Ill other requirements met.
In either case taxes must be paid up
to date.
The thing the banker Is going to
look ct, however. Is ability to pay.
All Of them make that clear. II they
think the prospective borrower will
pay the money back en- the terms
agreed upon. they will be glad to let
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