Evening star. [volume] (Washington, D.C.) 1854-1972, 1941-10-26
DC. Called on to Build Homes,
But Is Blocked by Priority Rules
Emergency Decisions Present Paradox
Threatening All Residential Construction

1uSlllS u cAlcIlu lilies lulicSo Vic
developer has priority rating.
Even builders with plans drawn
and approved by defense housing
officials find problems in their path.
For example. C. M. Small, builder
here since 1914, has project plan
ned for the Northeast section which
would house 100 families at rentals
from $36 to $42 per month. Mr..
Small said he submitted che plans
to the District Building Committee
on August l, but SO far has been
unable to obtain acceptance of died.
ication of streets and alleys or ap-
proval of grades. He estimates this
delay will cause the city to be with
out use of 100 low-cost units for
from four to five months.
Another bottleneck in the path
of defense building is that while
builders are told that thousands of
loW-cost units are needed in the
city, they are unable to obtain ac-
curate or current figures as to the
need. The Office of Defense Hous-
ing Co-ordinator Charles H. Palmer
reports that new survey of WASH
lngton'S housing needs will be COM
pleted in the next week or two.
Meanwhile, the only figures they
can supply are dated back to last
June, which show that private
builders should build 7,249 new
units. They estimate the need at
several times that figure now.
Lawrence E. Williams, chairman
OF the District of Columbia Defense
Housing Committee, speaking of the
housing need, says the big shortage
is in family units. There are plenty
of rooms in boarding houses and pri-
vate homes, the housing Office hav-
ing $500 listed.
SUIT Down on Loans.
Signs of building firms closing I'D
are already in evidence. Financing
institutions have stopped making
loans for construction of more ex-
penslve homes. To get loan for a
loW-coSt job the builder must show
the materials or a priority rating
for them. A builder in nearby
Maryland, unable to obtain ma
terials to finish a dozen higher
priced houses, many of which were
sold, abandoned the project al
together this past week A building
materials firm which posted bond
to assure completion stepped in
and attached all materials on the
job and will complete it.
Material dealers are worried for
fear that many more housing
projects will fail, forcing them to
| finish the jobs. This fear is caused
by a practice that is peculiar and
confined largely to Washington.
Few builders have sufficient capital
to finance the construction them
selves, These obtain construction
loans from banks, building associa-
| lions and other institutions. The
financing institution wants assur-
ance that the job will be completed,
SO the builder must be bonded.
| In Washington it is estimated
that material dealers supply the
bonds for 80 per cent of all dwell
ling construction. Because priority
restrictions are making it difficult
for builders to finish houses, they
see possible danger which could
force many dealers out of business
The older and well-establshed
building firms will be able to take
care of their businesses and weather
the storm which stops their work.
But a prominent banker said that
speculative building must stop"
He said he thought only the Shoe
string operator will lose out en-
tirely, but he said there are many
builders of this type around WASH
ington.