Evening star., 1941-07-04
Col. Westbrook's 'MutuoI Homes Plan Praised
As Solution to Housing Need and to End Subsidies

loI Homes Plan Praised
Need and to End Subsidies
insufficient demand and an in
adequate certain market. Now,
suddenly the demand and the
market are both here. And there
Is no more reason why the state
should subsidize rents or owner
ship of houses than of auto
mobiles or clothes. The ques-
ton is one of technical efficiency,
adequate wages and the elimina-
ton of speculative values in
building and in land.
The Camden Plan" Praised.
These remarks, of course, do
not apply to housing that is
plainly temporary. If a powder
plant is set up in a desert, OBJ
viously to be dismantled when
the demand for vast quantities
of powder shrinks, the housing
problem is like the problem of
building barracks for soldiers.
SUCH houses should be built with
the clear intention to dismantle
and salvage.
But much of the housing now
needed is in industrial areas
where there was housing Short
age before the defense program
began, and where the houses now
erected will be used in the future,
permanently displacing slums.
1t is in this connection that
the Federal Works Agency's So
called Camden Plan,' or 'Mu-
tual Homes" merits attention
and approval. The author is
Col. Lawrence Westbrook, who
has applied it to the problem of
providing houses for several
thousand workers of the New
York Shipbuilding Co., in the
Camden area. The plan Is
uniquely American; it is copied
from the mutual insurance idea;
it is excellent investment capital
ism and thoroughly social; and it
does away entirely with subsidy,
at the same time keeping for the
workers something of the elas-
ticity of rent, with the stability
of ownership. That it has the
approval of both the National
Association of Manufacturers and
the C. I. o. commends it.
How 1t Works.
Briefly, MutualeHomes sets up
large housing complex of units
of various sizes and sells stock
in the whole to the occupants,
who agree to pay monthly a sum
sufficient to cover interest, amor
tization, insurance, taxes, main
tenance repair, vacancy reserve
and administration expenses.
Initial monthly payments range
from $24 to $50 depending on the
size of the house. If the resi-
dent keeps up his place ade-
quately the percentage for main
tenance is released back into the
reserve; after the expiration of a
year the occupant receives GER
tain credits, and cannot be de-
prived of his equity.
Furthermore, as his housing
needs expand or contract, he
can move inside the Mutual
Homes Corp, without disturbing
his equity. Theoretically. Mu-
tual Homes could be built
throughout the whole United
States, and the policyholder could
move from Hartford to Detroit
to Los Angeles without loss.
Only Disadvantage Political.
Col. Westbrook and his asso-
ciates erected Audubon Village
by prefabrication in a factory
set up for that purpose. to DEM
onstrate the superior speed and
efficiency of such process.
The whole program is liquid
able, costs the taxpayers nothing,
and risks decrease in proportion
to the number of units and par
ticipants, on an actuarial basis.
1t is as applicable for private
capital as for public credit, pro-
vided investment and not specu-
lation is the object, and could
offer an outlet for insurance
companies and savings banks
funds.
But it offers no political ad-
vantages to any administration,
and that may be one reason why
some circles in Washington re-
gard it coldly.
1t is an added reason, however,
why capital, labor and the public
should support it, and why, in
deed, Congress should demand it
as the form of outlet for Govern
ment funds. For it does not COM
pete with private capital, but, on
the contrary, suggests a means
whereby vast amounts of idle
money could be put Immediately
to productive social use.