Construction Industry Launches Nationwide Low-Cost Housing Program

Washington, Jan. 31.-The vast and far-flung resources of the construction industry, with its billions of dollars of invested wealth, have been placed squarely behind the forces of Government in a nation-wide drive to build hundreds of thousands of low-cost homes to sell at not more than $5,000 each. This, it was announced today at the offices of the National Lumber Manufacturers 'Association in Washington, is the goal of the National Small Homes Demonstration, the name given to this industry alliance under which over thirty-five leading groups in the building material, home equipment, and home furnishing field are mobilizing their efforts to produce the ultimate in economy, efficiency and attractiveness of low-cost house design.

In a movement of mass proportions this group will build in every important ,community in the United States this spring and summer thousands of demonstration low-cost houses ranging in construction costs from $1500 to $4000, none to sell anywhere over $5,000. For the first time in the history of the construction industry, the home equipment group-plumbing, heating, electrification-the home furnishing manufacturers, and all building material industries are centering and coordinating their efforts to proyide "more house for the dollar"-homes in a variety of designs which may be bought by anyone earning a reasonably dependable income as low as $1,00O a year.

FHA Created OpPortunity

The program, now underway, will have the active cooperation of the Federal Housing Administration, and all houses constructed will be eligible for financing under the FHA system of insured mortgages. New impetus has been given to the movement in anticipation oi the passage of the amended Housing Bill, which reaching down to help the lower income groups will permit the purchase of a home under $6,000 with a down payment as low as 10 per cent, and the remainder over a twenty-five year period. The present law requires a down payment of 2O per cent and the balance over a twenty year period.

Last year, the National Small Homes Demonstration, then largely the single-handed activity of the lumber industry, built 3108 of these demonstra{ion houses in lN4 communities to sell as low as $1150 in some localities, but in no instance more than $5,000. Three typical designsthe work of the Federal Housing Administration-were used in this national demonstration to show that well constructed homes could be built anywhere in the United States at less than $500O each. Of this program, Secretary of Commerce Roper, singling it out for national recognition as the major trade association accomplishment of the year, said: "The fundamental objective was to cooperate in the creation of a happier and more normal American home life. The program included many phases, such as new merchandising methods pertaining to the building, furnishing and selling of homes, new and improved financing methods and other factors beneficial to the public. It has opened opportunities for home owhership and enhanced the pleasure and stability of American life."

This year the program has been broadened to include the cooperation of all groups in the building field, and will offer a wider varietl' of typical designs. Plans for the building in Washington of an ace squadron of eight of these houses have been completed and construction will begin within a week.

Lumber Retailers, Builders and Contractors Participate

The movement goes forward with the active participation of many thousands of lumber retailers, builders and contractors who will sponsor the construction and showing of similar demonstration homes in their communities. The program now is being presented at conventions throughout the country to over 20,000 lumber retailers, who again will act as the spearhead in this movement. Officials of the Small Homes Demonstration predict that the building of hundreds of thousands of small homes will follow in the wake of these local demonstrations.

In stepping-stone formation the range of designs for these houses begins with a minimum one-story, basementless small house, with an extra large living room, one bedroom, kitchen and bath at a construction cost well under $2,000, and goes on up to a six-room house with garage, costing between $2800 and $3400. All designs are approved by the Federal Housing Administration, and if situated on a suitable building site, will be eligible for FHA financing.

The first intimation that such a large scale building program was projected was had recently when Dr. Wilson Compton, secretary and manager of the National Lumber Manufacturers Association, testifying before the Byrnes Senate Committee on lJnemployment, urged the prompt passage of the Housing Bill, but "without the 'prevailing wage' amendment." Dr. Compton says: "'We are continuing the National Small Homes Demonstration Program, seeking to encourage wider industry and public participation and to reach still farther down into the ranges of even lower costs and lower prices. We are now working toward comfortable well-built modern housing which may be bought and paid for in the South at $12 a month; on the Pacific Coast at $15, and in the North at $18 to g20. This with the earnest cooperation of builders, dealers and material and equipment industries, we believe can be done. The National Small Homes Demonstration is a further pooling of wits and wisdom, further coordination of effort, and a sharper concentration of interest of building industries and builders on this single problem of the Small

Home.

Housing

Congress can help by promptly passing the Advisory

Committee Formed

The Advisory Committee of the National Small Homes Demonstration, which for the first time brings into focus all dimensions of the small home building industry, includes: Marshall Adams, managing director, Producer's Council; P. A. Andrews, vice-president, Johns-Manville Corporation; C. W. Bahr, plesident, California Redwood Association; J. D. Battle, Executive Secretary, National Coal Association; C. W. Berghorn, managing director, Association of Gas Appliances and Equipment Manufacturers; Marc G. Bluth, secretary, Stoker Manufacturers Association; A. D. Byler, vice-president, Edison General Electric Appliance Corp.; Bertram B. Caddle, secretary, Copper & Brass Research Assn.; Don Campbell, president, National Retail Lumber Dealers Assn.; W. L. Carver, secretary, Wall Paper Institute; Wilson Compton, secretary and manager, National Lumber Manufacturers Association; Russell G. Creviston, sales promotion manager, Crane Company; E. W. Daniels, vice-president, Harbor Plywood Corporation; W. J. Donald, managing director, National Electrical Mfrs. Ass'n.; F. Stuart Fitzpatrick, U. S. Chamber of Commerce; W. L. Fuller, special representative, U. S. Gypsum Co.; Parrish Fuller, secretary-treasurer, Hillyer-Deutsch-Edwards; A. P. Haake, managing director, National Ass'n. of Furniture Mfrs.; S. O. Hall, secretary, National Door Mfrs. Ass'n.; Lyle C. Harvey, vice-president, Bryant Heater Co.; A. R. Herske, vice-president, American Radiator Standard Sanitary; C. L. Isted, general manager, Shevlin-Hixon Co.; Herbert V. Kohler, executive vice-president, The Kohler Co.; J. J. Matson, General Electric Company; W. T. Neal, president, T. R. Miller Mill Company; Herbert U. Nelson, executive secretary, National Ass'n. of Real Estate Boards; Allison F. H. Scott, assistant to president, Anthracite Industries, fnc.; Wilbur Stra<lley, vice-president, National Ass'n. of Ice Industries; Walter G. Stromquist, eastern sales manager, I\{asonite Corporation; L N. Tate, vice-president, Weyerhaeuser Sales Company; Corydon Wagner, vicepresident, St. Paul & Tacoma Lbr. Co.; L. Rohe Walter. advertising manager, Flintkote Co.; W. W. Woodbridge, manager, Red Cedar Shingle Bureau; F. E. Wormser, executive secretary, Lead Industries Association.

Back From Northwest

Frank Paramino, Paramino Lumber Co., San Francisco, returned February 7 from a business trip to the Northwest. where he called on the firm's rnill connections and spent some time at the company's Tacoma office.