Evening star., 1934-11-03
HOUSING POLICIES
SUGGESTED TOU.S.
Realty Association Offers
Five Plans to Spur Build
ing Activities.

plan for revival OF mortgage activity
and home building on the basis Of
private initiative were outlined in a
resolution adopted by the National AS
sociation of Real Estate Boards at the
quarterly session of its board of di-
rectors, just closed in Chicago
The associations platform is based
on its deep appreciation of what the
Federal Government is doing and at
tempting to do for home ownership,
the revival of building and a stable
mortgage money supply. 1t is recog-
nized that the Home Owners Loan
Corp. has stopped the mortgage
panic of a few months ago and that
the new national housing act is rap
idly reviving pride in home and prop
erty ownership.
The administration has stated it
considers the general mortgage prob
lem the remaining principal problem
OF recovery. and revival of soundly-
needed private construction the most
promising implement to recovery. The
association is cooperating to the
fullest toward the objectives sought.
The resolution adopted expresses the
practical experience of its member
ship, as to the specific direction which
should be given the tremendously i'm
portant long-range governmental pol
tcies now being formed.
Five Proposals Offered.
The association asks:
l. That practical experience in this
definite field be drawn on for the work
in hand
2. That Government help take the
form of aid and economic direction,
rather than that of direct Government
building.
8. That. retaining the advantages
contained in present legislation, Fed
eral mortgage discount system be put
into effect.
4. That r. F. c. and P. w. A. funds
be used for purchase of insured home
mortgages.
5. That investigation be made to
clear the way toward Federal loans at
a low interest rate to limited dividend
housing corporations operating under
supervision.
Housing, in any community, inter-
locks with all the other major factors
of that communitys life, including
all the physical and social services
of the local government, as for ex-
ample, education. Its successful de-
velopment requires much more than
acquisition of land and construction
of buildings 1t requires detailed
knowledge of the local market and of
local habits of living. New housing,
therefore, should be constructed
under the immediate direction and
control of persons having seasoned
experience and intimate knowledge of
their own communities, the associa-
tion feels.
The association has advocated con-
sistently for a number of years that
the Federal Government should as
sumo economic direction in the real
estate mortgage field through a Gen.
trail mortgage discount bank, just as
it assumes such direction in the field
of short-term credit through the
Federal Reserve System. Such a dis
count bank or system is needed, to be
Joined with existing legislation tc
form comprehensive long-term
credit system.
True Federal Function.
The association feels that the true
function of Government would best be
achieved through its giving such eco
nomic direction, rather than through
the Government itself becoming q
landlord and competing with its owr
citizens, especially with that group OF
citizens who are today carrying the
major portion of the support of all
local government.
A committee consisting of Edward
A. MacDougall, New York, chairman
OF the associations Committee on
Housing; Walter S. Schmidt, Cincin-
natl, chairman of its Committee on
Real Estate Finance, and j. C. Nichols
Of Kansas City, Mo. drafted the res
olution, IN text as follows:
Whereas it is now a generally &C.
cepted fact that the re-establishmen
Of Nationwide market for sound rea
estate mortgage is required. Th,
Nations greatest asset is real estate
New homes and certain other build
tngs are required. Methods must bt
found to provide them.
Whereas the National Association
OF Real Estate Boards, representine
500 real estate boards, located in every
important urban center of the Unitec
States. has given, over a long period
intensive study to the mortgage prob
lem and some five years ago recon-
mended the creation Of a Fedora
Mortgage Bank Of Discount, sup.
ported by the Government and cover.
ing the entire mortgage field, as th'
only available means of maintaining
f1uidity in the flow Of mortgage money
And whereas the Federal Govern
ment, recognizing both the financia
problem and the necessity of stimu
lating employment through the en-
couragement Of building operations
has adopted various alternate ex
pedients in an endeavor to meet tn
situation.
And whereas it is obvious tina
these measures as constituted do no
offer an adequate solution of tn
problem;
Now. therefore, be it resolved, Tha
the National Association of Rea
Estate Boards reiterate its position an,
request that the practical judgmen
of men of long experience in the rea
estate field be utilized to the end O
developing plan for combining o
co-ordinating the various agencie
created and for modifying and amend
ing existing legislation so that 1t b.
adapted to serve the necessary end
And be it further resolved, Tha
we reaffirm our opinion that tn
proper action Of Government lies IL
helps, safeguards and economic direc
ton supplied by it to private enter
prise and that Federal discount sys
tenn, retaining the advantages con
tanned In present legislation, woult
accomplish this result.
And be 1t further resolved, Tha
In view of the need for immediat.
action that the r. F. c. and P. w. A
employ presently and in the futur
substantial funds in commitment upol
and purchase of insured mortgage
provided under the Federal housin,
act.
And be it further resolved Tha