Evening star., 1953-01-22
Home Builders Greet
Administration, but
Worry About Future
By Robert J. Lewis
SfoF Ssuff cerraspendan,


CHICAGO, Jan. 22.-The Ma
tion's home builders-who col
lectively have seemed to think
for the last several years that
their biggest headaches were a
direct outcome of Fair Deal
policieS-appeared today to be
more worried about the future
than they have for a long time.
Their convention here this
week has demonstrated that the
transition period has filled them
with uncertainty.
Matters Of Concern.
Almost to a man, they are
glad President Eisenhower has
taken over and that Republi-
can Congress Is In control.
But:
/. They are concerned over
the benefits they may receive
under the Republican admins
tration, and at the emphasis
housing may be given in legis-
lation.
2. They wonder what will hap
pen to the Governments housing
machinery. and whether the
man who heads it will be friend
1y to their part of the industry.
They seem to fear that bankers
will have more influence on
housing policy than the building
industry itself.
3. They are more and more
worried about the problem of
financing, which some builders
believe has reached a critical
stage. For example, Emanuel M.
Spiegel. new president of the
National Association Of Home
Builders, told newsmen yester-
day builders were disturbed" at
what he called the "overcau-
tious" attitude of bankers.
4. Many builders are beginning
TO doubt that million homes
can be built and sold this year
unless more generous Govern
ment aids are provided. And
they are worried, too, about
whether bankers will permit such
aids. If enacted, to work any bet
ter than aids now in effect.
CT and FHA Rates.
Two Of their handicaps are the
CT and FHA interest rates, they
think. Another is the present
down payment on FF1A-insured
homes.
They want the interest rate
pushed up, and the down pay
ment pushed down. They think
the one move will attract more
money for mortgage purposes,
and that the other will bring
more buyers short on cash into
the market.
Yet they recognize there's a
big headache involved in that.
too, since both steps would serve
to boost the home buyers
monthly payment.
II the monthly payment goes
up still further, many families
will be unable to qualify for
homes who today could do So
provided they had the present
relatively high cash down pay
ment needed, which they often
do not. =.
Statement Of Policy.
In a statement of policy
adopted yesterday. the organiza-
ton emphasized it hoped the in
dustry would "enjoy the con-
f1dence and support of the
Eisenhower administration in
providing homes ''in volume"
1T is essential, both socially
and economically, that home
building continue at the highest
feasible level" the statement
said.
To do the job, financing must
be available which permits
modest down payment and low
monthly terms" builders said.
Beyond this polite reminder
that they want to stay in busi-
ness with Government encour-
agement. builders raised no fur
ther issues with those who feel
that future mortgage financing
should be geared to higher down
payments and shorter mortgage
terms.
Crusade Against SlumS.
They went on record favor
ing crusade" to clean up slums.
through local enforcement of
sanitation and health codes.
To help private enterprise
join in rehabilitation work, build
ers also urged enactment of a
special mortgage finance vehicle
adapted to the financing of
urban redevelopment projects,
both for rent and sale, and to
financing the rehabilitation and
reconditioning of substandard,
but structurally sound housing"
AS for public housing, builders
want the whole program re
viewed" before additional funds
are committed. They also urged
that controls on credit, materials,
wages. prices and rents be
Scrapped,