The union times., 1945-11-17
Long Battle By Labor To Bring: Low Cost Homes
Special Inducements Pro- posed For Building Houses Under $5,OOO- -Co-Ops
 To Be Helped


 ing legislation, embracing special inducements for pri. vate builders to construct homes costing $5,OOO and less, was agreed on this week by Democratic and RepubIi. can leaders of the Senate banking committee.
 Chairman Wagner (D-NY) and Senators Taft (R-OhiO) and Ellender (D-La) reported after a conference that they had reached an accord on all major points.
 Wagner intends to introduce the final measure on behalf of all three as soon as legislative draftsmen complete their work. Since the banking committee handles housing legislation, its favorable consideration there is virtually assured by its bi-parti- san backing.
 REVISION OF EARLIER BILL
 The measure is a revision of an earlier Wagner-Ellender bill to meet criticisms advanced by Taft and others and to incorporate some additional features, particularly for lOw-cOst homes.
 It is fresh attempt, too, to im- plement general administration housing program aimed at encour- aging construction of 1,250,O00 dwelling units a year for each of the next 10 years.
 Here are its chief features in the low-cost field:
 l. Authorization for the fed eral housing administrators to guar antee mortgages up to 95 per cent of the appraised value on Iow-cOst homes. The interest rate could not exceed four per cent (plus One- half of one per cent insurance charge), and amortization could run for as long as 32 years.
 The administrator would have dis cretionary powers as to what was "low-cost" home to be included in this program, but it could not be ap- piled to any home costing more than $5,0OO.
 TAFT EXPRESSES VIEWS
 Taft said that in practice he thought this would work out SO that the program would apply to homes costing $5,000 or less in areas of high building costs but that the ceiling" might be $4,5O0 or less in sections where building costs are lower.
 2. Mortgage guarantees up to 9S per cent of value on mutual hous- ing" constructed under 3 l-2 per cent, 4O-year loans. The idea here is that a group of persons might form a cooperative, buy land and have homes built for themselves. It is argued that the lender, having to deal with only a single cO-Opera- tive, could handle the loan at less cost than if he dealt with 40 to 50 individuals. An insurance charge of One-haH of one per cent would be made on such guarantees.
 3. Guarantees of mortgages up to 90 per cent of value on rental where the builders accept ed a rent scale approved by the federal housing administrator. Such loans would have to be at no more than 3 l-2 per cent interest and One-haf of one per cent would be charged for the insurance.
 Ellender described the whole pro- gram as aimed to aid those who are a little too we'll off for public hous- ing, and are not financially able to take advantage of present FILA pro- grams.
 SHOULD CLOSE GAP
 As rough rule of thumb, he said, public housing now takes care of hose who can pay no more than $20 ! month for housing and the present FILA program is geared for persons who can pay $40 and up.
 This should close the gap" he ,aid.
 FILA mortgage guarantees now may not exceed 90 per cent of the value of a home. In effect, that means the buyer must be able to make a down payment of 10 per ,ent.
 The 95 per cent guarantee would permit much smaller down pay nents.
 The new measure retains pulp ic housing and urban re-deveIop- nent features of the Wagner-EIIen- Ter bill.
 Under the proposed urban redevel- nent program, the federal govern nent would extend financial aid to ities which bought up "blighted