Evening star., 1939-03-25
Housing Subsidies
To Aid Ownership
OF Homes Urged
Privute Builders Could
Do Job Efficiently,
Editor Holds
Gpecial Dispatch to The Star.

Epectal Dispatch to The Star.
NEW YORK. March 25.-Housing
subsidies should encourage private
home ownership rather than rent
paying, declared Joseph B. Mason
Eastern editor of American Builder
yesterday in announcing an edi-
torial campaign to make low-cost
home ownership practical reality"
The same subsidies now being
paid to large-scale public housing
projects would enable ''ill-housed"
persons to own small homes built
and financed by private industry,
he declared.
IF housing subsidies must be paid,
let's place them where they will
make better citizens. Do we want
Nation OF rent-paying amoebae
huddled in huge public-owned hous-
Ing projects, or Nation of vigorous
citizens living in their own private
homes, supporting their local COM
munities and taking an active part
in them?" he asked.
Private Homes Cost Less.
Quoting from an editorial in the
April American Builder, advance
copies of which are being sent to
Congressman, prominent builders
and housing organizations, Mr.
Mason pointed out that under the
present United States Housing Au-
thority program the following help
is extended: l. A 80 per cent loan
running for so years is granted by
the Federal Government. 2. A 10
per cent loan is advanced by the
local housing authority. 3. An an
nual subsidy of 3s4 per cent of the
total cost is paid by the Federal
Government each year for 60 years.
4. Exemption from local real estate
taxes is granted.
That is subsidy in a big way"
he said. I'VE are prepared to DEM
onstrate that private builders with
far less help could provide better
houses at less cost, both to the
occupants and to the taxpayers"
Cost Only sl1.5O Monthly.
let us illustrate with a $4,000
house and lot. at which price good
house can be built and sold any
where in the country close to cheap
transportation.
The monthly amortization and
interest payment (at per cent?
on a 25-year loan of this amount
is approximately $24-which is too
much for the ill-housed one-third.'
But if they were helped with the
same 80. per cent annual subsidy
granted by the U. S. H. A.. the
monthly cost would be reduced
$3.50 So a $4,000 house would
cost only sl150 month";
At that price, Mason pointed out,
the low-income buyer could afford
to pay at least part of local real
estate taxes. With the addition of
fuel and upkeep expenses. the
monthly cost would still be far less
than he would have to pay for rent
in the large-scale public housing
projects which, by their nature and
location, are most expensive to build.
50 to 50 Per Room.
If a 3s4 per cent subsidy does not
bring the cost down low enough for
very low income individuals. it could
be increased to per cent, or 5 per
cent, or even 6 per cent, and still
cost less. since it runs for only 25
years. than the 60-year u S. H. A.
subsidy. If 6 per cent annual
"gift" of this type were contributed
to the under privileged" occupant
1t would practically cover the en-
tire monthly interest and amortiza-
ton payments, leaving him to pay
only local taxes and upkeep.
In terms of cost per room. pri-
vate builders could thus supply good
five or six room single-family homes
at from So to 50 per room per month
Since the financing and servicing
Of the loan would be done by pri-
vate agencies under the present sys-
TEN, either with or without F.. H. A.
insurance, the Federal Government
would be spared the necessity of
raising the huge sums now required
to advance the 80 per cent loans of
u. S. H. A., Mr. Mason points out
Most pedestrians killed were in
the prime of life and health. OBJ