Evening star., 1934-04-14
BUILDING TREND
HAILED IN CAPITAL
Continuance of Upward
Movement Regarded as
Recovery Sign.

Should the upward trend in build
ing contracts, recorded in March, con-
tinue through the next several
months, indicating that private capi-
tai has at last resumed its flow into
construction channels, official Wash
ington will bank on 1884 to place the
country within striking distance OF
realized recovery, in the opinion OF
H. r. Northup, specialist in home
building finance.
That faith is based on the now
widely-Shared view that at this stage
Of the recovery processes a revival
of building activity on an account
able scale would supply the vital i'm
petuS to industry at large for putting
men back to work by the hundreds
of thousands; and that the needed
volume of building will be definitely
assured if, IN addition to what the
Government has done and now plans
to do toward that end, mortgage
financing is again available from es-
tablished loaning agencies. Converse
ly, it is felt that so long as the build
ing industry is permitted to scrape
bottom, as it has been doing for the
last two or three years, rs to 30
per cent of the 100000 to 5,000,-
600 men-both white collar and man
ual workers-directly or indirectly de-
pendent on the building industry for
livelihood are likely to continue
without jobs, and genuine recovery
will not be realized.
Administration Acts.
After months Of speculation on
Government policy in the matter, the
administration has, within the last
few days, definitely committed itself
to a program of major proportions
designed to get the building industry
off dead center. Previously published
reports that legislation for that purpose
would be initiated upon the return of
President Roosevelt from his cruise off
the Florida coast, now have been
verified in an announcement by
Frank c. Walker, director of the Ma
tional Emergency Council, that the
present Congress will be asked to
place Government credit back of a
home building program. He indicated
the Federal Home Loan Bank Board
might be chosen as the central agency.
and by lack of denial gave credence
to the report that Gen. Johnson
would be placed at the head of the
undertaking.
Program Is Outlined.
The program to be outlined, Mr..
Walker said, contemplates establishing
requirements for standard type of
mortgage, maturing in Is or 20 years,
with all the costs of building project
covered by an amortized mortgage,
eliminating the customary second
mortgage. While Mr.. Walker desig-
mated no definite amount to be asked
in an appropriation for the purpose,
it is generally believed that approxi-
mately $1,500,000, will be made
available through some form of Gov
ernment support or aSSistance-loan
corporations, guarantees Of private
loans, etc, He made it clear that
whatever funds are made available
will be used for building modest
homes and home-remodeling projects,
clearance of slum districts and sub
slstence homestead activities, and that
no business structures or expensive
dwellings will be included.
The mortgages would bear low in
tereSt, probably per cent. A survey
has convinced those who drafted the
plan that banks and other lending
agencies would readily furnish money
to contractors for building if the
Government insured" the mortgages,
and that it is felt the Government
can do this with little or no risk. In
the opinion of the interested Govern
ment authorities, there is a shortage
OF small homes, particularly in city
suburbs, small towns and rural dis
trjcts. Some housing specialists hold
the United States was markedly def
clent in the satisfactory types of
housing even before the depression
began, Now the depression has piled
up an enormous potential demand for
home renovation and improvement,
with many structures SO dilapidated
as TO call for complete demolition and
replacement. Concrete evidence of
the expanding need for, new housing,
on the other hand, has been pro-
duced by more than score Of surveys
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organizations.
Survey Reveals Demand.
Notable among these surveys is
that which was conducted six months
ago by the research department of
the National Recovery Administration,
headed by Alexander Sachs, and
which indicated a need of 100000
residential units. Supporting those
ngures is report by the National
Association of Real Estate Boards to
the effect that there is hardly city
OF any size in the country in which
there is not an immediate demand for
homes on the part of people who
are ready and able to build. people
IN position to pay substantial cash
equities providing the balance of the
mortgage financing can be obtained
on fair terms. In single family dwell
lngS 27 per cent of the reporting
cities are shown to have shortages.
compared with only per cent a year
ago. Some representative figures
offered are: Washington, D. C.
I'ooo homes; Oakland Calf, 1000
homes; Fort Wayne, Ind, 500 homes:
Canton, Ohio, 400 homes.
Similarly enlightening are figures
supplied by the National Lumber
Manufacturers Association and OBJ
tanned through a questionnaire sent
to 1000 retail building supply dealers
Ihe canvass brought reports from
LAB dealers in 883 counties of the AZ
States. These reports show there are
over 100000 prospective small resi-.
dence builders, possessed of a lot or
some cash or both, who are waiting
only for adequate financing to begin
building. Also that awaiting moder-
ate and conservative financing are
projects involving 256,000 farm build
lngs and $4,000 small business struc-
tures-not to mention remodeling and
repair Jobs without number
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