Evening star., 1950-11-16
Realtors Board
AbandonsF Fund
DriveProposa|
Plan Dropped After
Storm of Protests
From Big Cities
By Robert J. Lewis
Star Staff Correspondent

WHICH leadership Oh Tie NaGlOuaI
Association of Real Estate Boards
sought to raise 81 million a year
for the next three years for a
home ownership campaign through
a special assessment of the entire
membership.
That was clear today after the
associations Board of Directors
briefly announced last night the
proposal would be Withdrawn"
The announcement gave no rea-
son for the action, but delegates
explained the national association
faced a loss of many members If
the plan was pressed.
The Washington delegation was
among many which. were in
structed to oppose the multi-mil-
lion-dollar Embarrassing proposal.
The announced purpose of the
drive was to finance an extensive
radio and newspaper advertising
and public relations program sup
porting the idea of private home
ownership. Under the proposal,
realtor members were to be as
sessed $25 a year for the next
three years, plus S. for each
salesman.
Battle On Floor Avoided.
Opposition was led by Chicago.
New York and other big-city
boards and attracted strong con-
vention support. Board members
privately admitted that action &C
cepting an interim report" and
authorizing continuing study" of
the plan was taken to avoid a
battle on the convention floor.
Boards opposed to the idea
contended expenditure of the
funds would be a waste of money"
and "inopportune" at time when
Government construction curbs
were seeking to conserve defense
materials and hold down imitation.
Robert P. Gerholz, president of
the association, went on record
earlier in the week In favor of
the proposal. Walter S. Dayton,
a prominent New York director,
was scheduled TO present details
at tomorrow's session. Instead,
he will offer an interim" report.
AT the same time the announce
ment was made. the association
withdrew an address prepared by
Mr.. Dayton in which he urged
of the plan.
Previously it was approved byi
State realtor conventions In Ar
kansas. Colorado, Georgia. Iowa, |
Kansas. Louisiana, Michigan,
Mississippi, Nebraska,
New Mexico, North Carolina,
North Dakota. Oklahoma. Oregon,
Pennsylvania, South Carolina,
Tennessee. Texas, Utah, Washing
ton and West Virginia.
In his prepared address to have
been delivered tomorrow, MIR.
Dayton assailed drastic real es-
tate and construction controls re-
Gently imposed" which he con-
tended "aim to deprive hundreds
of thousands of families of their
right to home ownership. These
controls follow other Government
moves that substitute Government
ownership of family shelter for
home ownership"
Preliminary plans for the home
ownership campaign already have
been drawn up by Benton g.
Bowles. New York advertising
agency.
Earlier, Charles c. Koones of
Washington was nominated for
national director. His election is
expected today.
FHA Gives Assurance.
The Federal Housing Admin
istration has given assurance that
1t won't engage in dumping
Iarge-scale postwar apartment
projects on the open market in
case substantial number of
Government foreclosures might be
necessary in the event of an eco
nomic depression.
Clyde L. Powell, assistant FILA
commissioner for rental housing,
pledged that FHA would continue
to hold such properties Ito exert
a stabilizing influence on the real
estate market" in a period of
business decline.
In the Washington area alone.
FILA has insured financing for
about 400 such large scale apart
ment projects having approx
mately $4,000 units.
For the present, however, FILA
will continue to sell rental projects
which go into default, Mr.. Powell
said.
"This policy will be followed as
long as present favorable business
conditions prevail" he told a con-
vention session yesterday. IF at
some time in the future these
conditions should change, the
Federal Housing Administration
can be relied on not to participate
in dumping properties on the
market, as occurred in the years
of the last depression with such
chaotic results"
No Big-Scale Foreclosures.
Mr.. Powell hastened to add that
the Government does not expect
to be obliged to foreclose or
many" of these large-scale post
war projects.
S Some observers have predicted
that many Of these rental projects
will eventually be acquired by
FILA" he said. "I do not believe
this to be the case and certainly
the record so far does not indi-
cate it."
{ More than 100000 units have
been either completed or are
under way. he said. They have
FILA mortgage insurance amount
ing to about So billion.
So far, 81 projects having les:
than 1000 units have been fore.