Evening star., 1935-06-08
HOUSING IS HELD
ACUTELY NEEDED
Recent Revival Of Building
Trade Declared Evidence
of U. S. Plight.

The recent upturn IN residential
construction Is evidence that serious
housing shortage is beginning to be
felt in this country and must be met
by an adequate building program, Col.
John P. Hogan, chairman OF the Con-
struction League of the United States,
declared today in a statement issued
through the Offices of the league here.
He made this assertion in commenting
on the passage by Congress of two
amendments to the national housing
act.
Under the amendments. which were
passed as part of the new Home Own
ers' Loan Corp. act, the amount OF
money that can be loaned for mod
ernization was increased and the cap
ital required for organizations to dis
count mortgages on new construction
was decreased in an attempt to en-
courage the general formation Of
these organizations.
These measures, Col Hogan said.
should be utilized to the fullest pos
eible extent as aids in stabilizing the
fields of real estate and building f.
nance to permit decisive action.
Pointing out the general increase in
residential construction this year. in
cluding the "a per cent increase
shown in April, as compared with the
same month in 1884. and the 80 per
cent increase shown for the first half
Of May. he asserted that the increase
does not begin to be sufficient to meet
the need.
Huge Program Held Need.
There is, he said, at least Sl,200.-
100000 worth of new construction
needed at once If a shortage is to be
avoided, and removal of all SUBJ
standard housing will require a S27,-
o00.000,o00 construction program.
We cannot afford to hesitate longer
In taking effective action to meet the
need that is growing rapidly" he de-
clared
Through the housing act amend
ment dealing with modernization, the
amount of money that can be ad-
vanced on Government-insured loans
has been increased from 1000 to
s50,000. The other amendment de-
creases the amount of capital required
for the formation of national mort
gage associations to discount mort
cages from $4,000 900 to $4,000 600.
The first. in addition to makir>
practical the modernizatio of COM
mercial structures. should permit ex-
tensive rehabilitation to reclaim SUBJ
standard multiple and other dwell
ings, according to Col. Hogan.
At the same time. the second
amendment can be used as an aid in
the task of keeping the finance market
liquid so an adequate new ConStruc-
ton program can be carried out, he
said.
The most conservative estimate. he
explained shows that at least 400
900 homes are needed to avoid short
age and that 100000 homes, below
even minimum standard. should be
completely rehabilitated or replaced.
1--WE have witnessed" he continued.
va definite upturn in the construction
OF homes this Spring but that upturn
Is scarcely a start on the work that
is needed. The country has reached
point where not only an upturn in
construction but definite building
program is vital necessity.
Great Saving Is Seen.
There is no more important factor
In our social or economic life than
housing. Sociologists have estimated
that proper housing in this country
would save us $1,000 100000 a year in
crime and other bills. The point at
present, however, is not Just one of
social reform; it is one of an actual
need for more shelter
Few people realize Just how thor
oughly we have neglected housing in
the past few years of depression. They
do not know. for instance, that the
S24l 100000 we spent for new homes
last year was but little more than
the amount we spent for post offices,
fire houses. police stations and other
public buildings. They do not know
that the total number of homes built
during the past five years has been
equal only to little more than half
the number of homes that have be-
come obsolete during each single year
of the five. We have built only about
296 900 in the five-year period, while
about 511 900 have become obsolete
every year in the period.
Already about $20O000.00O has
been allotted under Federal housing
insured loan provisions as available
from banks for new construction, but
more must be allotted and construc-
tion must reach important proportions
II we are to meet the need.
From the prospective home owners
point of view there is no more ia
Vorable time than the present to buy
or build. AS recovery proceeds, the
price OF real estate and construction
is sure to advance. and those Who
fear the bugaboo of imitation cannot
apply their fear here, because real
estate offers sound investment that
will not in any case be affected"