Evening star. [volume] (Washington, D.C.) 1854-1972, 1945-03-04
Insurance Firm!
Seek 10 Build
Housing Here
Law Permitting
Postwar Projects
Will Be Sought
BY DON S. WARREN.


housing projects in and near the
District, including redevelopment o!
blighted areas, were given an I'm.
expected boost yesterday wher
spokesman for life insurance com.
panies appealed to the Senate Dis.
trict Committee for legislation Il
permit them to engage directly II
housing projects.
Under present District law, life
insurance companies are barred
from direct investments in real es.
tate, except for company used build.
ings, though insurance funds are
invested extensively in first mort
cages.
The draft of a suggested amend
ment to the District Life Insurance
Act was submitted to Edward P
Perry, clerk to the District Com
mittee and secretary to Chairman
Bilbo, by representatives of the
Acacia, American Standard ano
Equitable Life Insurance Cos, who
said they had consulted with va
rious other life companies operating
here.
Goes Before Senate This Week.
The proposed measure will be laic
before the Senate this week by
some member of the District Com
nittee, Mr.. Terry said.
The proposal was presented by
Howard w. Kacy, first vice presi-
dent of the Acacia Co.; Covert F
Crowder, secretary treasurer of the
American Standard, and Charles E
Phillips of the Equitable Co.
Pointing to the heavy housing
needs that should be filled in the
postwar period, they contended that
with proper safeguards which should
be written into the law there was
no reason why life insurance COM
panies should not engage directly
in housing projects.
AS an indication of the housing
shortage that has been piling up in
war years, the insurance spokesman
cited studies by the National Hous-
ing Agency which estimated there
was a need for construction of H.
100000 urban dwelling units over
the country in the first 10 postwar
years.
so far as possible this job should
be done by private industry" one
insurance company spokesman said
Can play Dominant Part"
ave have been studying this mat
ter in recent months and it is our
judgment that the life insurance
companies can and should play a
dominant part in this undertaking
which is so necessary to the future
well-being of our country" they
asserted
For many years, the life COM
panies have been an important fac
tor in the field of new housing by
reason of their large investments
in first mortgages on residential
and residential-income properties.
1.-THE knowledge and experience
gained by the life insurance COM
panies in the handling of these in
vestments over a long period of
years leads us to the conclusion that
they are admirably equipped to play
an even more important part in the
field Of housing through the con-
struction, operation and ownership
of community housing"
Under the proposed legislation,
the life companies first would have
to obtain the written consent of the
District superintendent of insurance
before engaging in any direct real
estate investment. Under certain
other restrictions, they would be
permitted not only to own, build
manage, operate, rent and sell nous
ing projects-other than hotels
but also retail stores, shops and
other improvements "as may be rea-
sonably necessary or desirable" fol-
the accommodation of occupants OF
such projects.
Restrictions Proposed.
Restrictions proposed to safe
guard investment of life insurance
funds would include a provision pro-
hibiting company to invest more
than Is per cent of its admitted
assets in such realty enterprises
Another states that the aggregate
investment by any company in its
community housing projects, in
Guiding costs of land and improve
ments, may not exceed rs per cent
OF the companys admitted assets
in excess of it's liabilities.
Another provision specifies that
unless development is substan-
TALLY completed within two years
after the consent of the District in
surance superintendent was given
he may require the sale of the real
estate. The Districts agent, how
ever, would be empowered to grant
extensions if he found the circum-
stances warranted.
Advocates of the plan recalled
that 20 years ago New York "recog-
nized community housing as a
proper investment for life insurance
funds" by permitting their invest
ment in such projects. They added
that a number of other States in
recent years have adopted laws pro-
viding for the creation of redevelop-
ment corporations. These usually
are given the power to acquire land
through direct purchase or by con-
demnation proceedings in blighted
areas for low-cost housing projects
they said.
THE long experience of the Me-
tropolitan Life Insurance Co.," they
continued, seems to demonstrate
that these projects are sound in
vestments for the funds of life in
surance companies
Quotes Previous Testimony.
Testimony given a year ago before
the House Public Buildings and
Grounds Committee by Frederick H.
Ecker, chairman of the board of
Metropolitan Life, describing num-
erous community housing projects
In which it had engaged was
quoted.
These included Parkfairfax, the