Evening star., 1950-10-14
Housing Boom
.|sCut Sharply
In September.
$4,000 Fewer Units
Begun Than in August;
$500 Avoid Curbs
By Robert J. Lewis

the first SuDStantlaI pfeak IN
the housing boom throughout the
country. as housing officials began
to spell out the steps by which
they intend to throw a checkrein
on District builders who beat the
housing curb deadline.
The Bureau of Labor Statistics
revealed that record-breaking
drop IN the number of houses
started throughout the Nation
occurred in September.
The months decline resulted in
$4,000 fewer units than were put
under construction in the previous
month, BIS said.
This, said the agency, was "the
greatest August September de-
cline on record"
July Credit Curbs Cited.
In spite of the sharp decline.
the level of September building
stood at $4,000 units, the largest
September on record.
The decline from August to Sep
tember apparently reflected the
effects of the first mild credit
curbs put into effect in mid-July,
when down payment requirements
were increased by 5 per cent.
Fear over the future supply Of
building materials also may have
induced more cautious attitude
by builders, observers pointed out.
Lumber and other items now are
in tight supply owing to the de-
mands of the current boom. De-
fense preparations are expected to
create further demand for many
items.
$500 Beat Deadline.
Meanwhile, Thomas C. Barrin-
ger, director of the Federal Hous-
ing Administrators Washington
Office disclosed that a still higher
number of beat-the- -dealine finan-
cling applications had been filed
by District builders that hitherto
was announced by FHA.
The new figures bring to ap-
proximately 1880 the number Of
housing units for which builders
filed "easy-credit" applications in
the District area within two-day
period.
This is $500 more than original
ly were estimated by the FHA
and the Veterans Administration
the day after the builders rush to
get in under the wire occurred.
Builders applications received
by FILA covered about 8,100 units.
while the Veterans Administration
reported that easy mortgage
credit for 7,400 units was sought
from that agency.
New Type introduced.
The real shocker in FHA's new
figures was that only about 500
were for the type of financing
previously used by builders and
that 1887 units we're to be "co-
operative" housing of a for-sale
type never built here before.
This type of housing can be
financed by the Government with
down payments of only 10 and
Is per cent, whereas the new
mortgage credit curbs announced
Wednesday raised down payment
requirements to as high as so per
cent.
At the same time, Mr.. Barrin-
ger gave the first official hint Of
the means by which FILA may
seek to hold down building.
despite builders beat-the-d dead
line efforts.
In a statement, Mr.. Barringer
declared:
I'VE expect that a large per-
centage of these applications will
fall by the wayside when they
have been subjected to examina-
ton for site eligibility, economical
land planning conditions, and ac-
ceptable architectural design and
construction requirements"
National Policy Seen.
Observers felt that Mr.. Bar
ringer would not have made this
statement had he not previously
conferred with national FILA Of
ficials, and that to this extent his
statement reflected the policy the
national agency will pursue.
AS far as the Veterans Admin
istration is concerned. however, a
spokesman said he knows Of no
way VA could discriminate"
against builders who got their
applications in before the dead
line. So far as he knew. he said.
such applications would be proc
essed" in the same way as others.
Despite the sharp drop in home
construction from August to Sep
tember, the Bureau OF Labor
Statistics pointed out that the
number of houses started in Sep
tember was $4,000 units more
than for September. 1949, and set
new. all-time September record.
Part of this was explainable,
however, said BIS, by the fact
that housing started in September
was sustained" by large back
log of commitments to provide
financing made in July and Au-
gust by Government agencies
and lending institutions.
Exceptions for Veterans.
Meanwhile, the Veterans Ad-
said today that the
new curbs on housing credit will
be relaxed for World War II
veterans when actual need is
shown.
Restrictions put into effect at
last Wednesday set a
maturity Of 20 years
on loans for homes costing more
than $1,000 and Is years for
those costing $1,000 or less, be-
sides higher down payment re-
quirements.
Frank w. Kelsey, VAS assistant
administrator for finance, said
extensions up to 80 years may now
be granted where a veteran Is
found unable to meet shorter term