Evening star., 1948-02-25

Associa t ion OF
Home Builders,
&, now in its third
day.
Milton J. Brock. Mean while
Edward r. Carr OF Washington
today relinquished the post of as
sociation president to Milton J..
Brock, Los Angeles.
Other ofiicials chosen last night
were Rodney M. Lockwood, Detroit,
reelected vice president; Nicholas
r. Molnar, Cleveland, who Sue
ceeds Mr. Brock as treasurer, and
Thomas P. Coogan, Miami, secre-
tary.
Baltimore Man Elected.
Robert Bready, Baltimore, was
elected a regional vice president.
Two Washington men were re-
elected national directors and three
others were elected for the first time,
raising Washington's representation
on the board.
Mr.. Carr was chosen a permanent
director. Reelected were D. l..
Chamberlin and Waverly Taylor.
Chosen for the first time were Clar-
ence w. Gosnell and William S.
Banks, president and vice president,
respectively, of the Washington
Home Builders Association.
ALTERNATE directors elected were
Clarke Daniel and A. Milton Talbert.
Under the low-cost veterans hous-
ing plan, which will be presented to
the Washington association soon
after delegates return home, and
later to veterans groups, certain re-
laxations of curb, gutter and road
requirements would be sought from
metropolitan area authorities.
Help Of Counties Needed.
This low-cost housing which is
needed now just cannot be built un-
less We have cooperation of nearby
counties" one official said.
1.-THE hard truth is that nearby
counties have not wanted Iow-cost
housing because it does not assure
a high enough tax income" he ex-
planned. IF this attitude is .modi-
fled, then We are more convinced
now than ever that we can goI
ahead with hundreds or thousands
Of low-cost dwellings,"
Under the plan talked of here,
Washington builders would COM
bine" to build the low-cost units,
each builder taking over a part of
each project started.
I'VE are very anxious to enlist
the help of veterans groups on this
idea, with the hope of getting sew
eral projects under way as soon as
possible" Clarence W. Gisnell, presi-
dent Of the Washington Association,
said.
Foley Talks to Builders.
Raymond M. Foley, Federal hous-
ing administrator, today told the
home builders he believed the time
is at hand when the Government
should get away from the wartime
idea" that private builders Should
be asked to take but little risk"
Explaining he is not in favor of
"an abrupt switch to prewar financ-
ing devices and standards" but,
rather, a change based on a "transi-
tionar' legislative program, Mr..
Foley warned the builders:
"We viii not have a really strong
private enterprise If any large seq
ment of it is too heavily dependent
upon Federal support or Is engaged
in business with little or no stake of
its own"
Mr.. Foley did not bar extension of
production credit devices" such as
the present so-called Title Six pro-
gram through which the Govern
rnent insures 80 per cent loans for
rental and for-sale construction, but
Indicated he believed any renewal
Of that program should be on a
short-term basis. u
Mr.. Foley said fatty housing costs
are still too high" and declared
there is urgent need for Nation
wide campaign by the building in
dustry for reduction Of it's own
costs"
Richards Backs Extension.
Yesterday Franklin D. Richards,
commissioner of the Federal Hous-
ing Administration, said he would
support a plea to Congress for a
one-year extension of the Govern
nlent's emergency mortgage insur-
ance program for veterans housing
with provision for $4,000, ,000, 900 in
additional mortgage insurance.
He said this in response to a ques-
tion during panel discussion as to
whether he would favor a $s,OOO.-
100000 one-year extension of the
program.
II He said he believed $4,000 900 900
IN mortgage insurance was "all that
could be utilized" during the period.
A balance of only about 1851 ,0Oo, 900
remains Of the recent insurance
amount authorized by Congress.
Housing costs must be brought
down If builders want to continue
to sell to veterans, the convention
was warned by Thomas B. King,
director of the Veterans Admins
tration's loan guaranty service.
He said already IAN undue pro-
portion Of new homes are being
sold to nonveterans owing to inabil-
ity of the veteran family to pay
present prices.
Loans Seen Problem.
"The bottom of the barrel Is being
reached" he said, explaining that
the median income of veteran fam
lilies is about $4,000, and only 6 per
cent of veteran families have in
comes Of $1,000 a year or more.
"The average veteran family can
Afford a home with a price tag of
only about $780," he said, and
added that only 10 per cent Of all
veterans could afford a $12,500 house.
Concerned over difficulties of OBJ
tanning loans in some areas of the
country, builders had an opportunity
yesterday to talk over the financing
problem with mortgage loan repre-
senatives and bankers.