Evening star., 1948-04-10
Underestimate
Policy on Costs
Revealed byFHA
viers Mill Hearing
Is Told Of Plan to
Hold Prices Down

The Federal Housing Agency for
the last two years has been giving
builders insurance commitments
below estimates of actual building
costs In the hope of holding down
the price of homes.
This was disclosed yesterday by
James A. Hewitt, FHA insurance
director for the District, who told a
House Expenditures Subcommittee
that builders of the controversial
Viers Mill Village housing develop
ment could have been given a higher
estimate of building costs under the
law.
The subcommittee Is studying
charges that the proposed 1.400-unit
project near Wheaton, Md, was
overappraised by FHA and the Vet
erans' Administration and that the
one-family homes are being built
poorly.
$6,452 Estimated Cost.
Mr. Hewitt said FHA placed con-
struction cost estimates of the Viers
Mill houses at $6,452 last August.
This was figured on a cost index of
1T. he said, when the actual build
ing cost index for this area was
1876.
The cost index, he explained, is
computed according to increased
costs, with base index of 100
representing building costs in 1s4l.
1--WE use an index of 167 until
January, 1947," he declared, when
every builder in town was fighting
with U.S." The actual cost index in
that month, he said, was 1874. The
ofncial said FHA adopted an index,
of 100 last November, because there
were no signs that the market would
break"
Earlier, J. Bond Smith, counsel for
the Maryland National Capital Park
and Planning Commission, bitterly
attacked the Viers Mill project on
"esthetic grounds" He said the
commission had no power, however,
to deny building permits on those
grounds. But he added:
"If we can still find some way Of
stopping this development of 1,400
identical homes on one of the most
beautiful spots in the county, we
will be very happy"
Mr.. Smith said his main objection
is that nearly all the small homes
are the same in the huge develop
ment.
Representative Lanham, Democrat,
of Georgia, said that, If the COM
mission is unable to rule on projects
on "esthetic grounds" it appears to
be "a commission without much
power"
Tn this case, I think you are
right" Mr.. Smith replied.
Mr.. Smith and Mort Thomas,
chief engineer for the commission,
testified that commission investiga-
tors have been visiting the Mont
gomery County project nearly every
day and comforting with an FHA
inspector on the job permanently.
Concrete Samples Tested.
Mr.. Thomas said samples of all
concrete foundations at the project
are being tested for durability and
strength. The foundations have
been a chief complaint of other
county officials He said he has
been able to find only one instance
of a chimney which could be swayed
by pushing, as earlier testimony
indicated
Edward L. Simpson, chief archi-
tect for the FILA here, rated con-
struction at the project as "ade-
quate" He said such defects as
cracked concrete foundations can
be repaired so they ARE just as good
as new"
Veterans Administration officials
will testify before the subcommittee
Monday afternoon on the agency's
approval of the $8,700 selling price
of the homes. About 300 houses
now are under construction and
some $50 have been sold, testimony
brought out.
Chairman Snyder. Republican. Of
West Virginia said representatives
of the Harris Construction Co. con-
tractors for the project, will be
heard later