Statement on the White House Conference on Home Building and Home Ownership.

THE PRESIDENT today announced a White House Conference on Home Building and Home Ownership. He stated:

"After wide consultation with interested leaders, I have decided to undertake the organization of an adequate investigation and study on a nationwide scale of the problems presented in home ownership and home building, with the view to the development of a better understanding of the questions involved and the hope of inspiring better organization and removal of influences which seriously limit the spread of home ownership, both town and country.

"The Conference will be organized by a planning committee comprised of representatives of the leading national groups interested in this field, under the chairmanship of Secretary Lamont. This planning committee will, in turn, set up nationwide subcommittees to determine the facts and to study the different phases of the question.

"The Conference will deal with the whole broad question of home construction and home ownership. It will embrace such questions as finance, design, equipment, city planning, transportation, etc.

"One of the important questions is finance. The present depression has given emphasis to the fact that the credit system in home building is not as soundly organized as other branches of credit. Commerce, industry, installment buying, and to a large extent farm mortgages, all have more effective financial reservoirs. There have been months during this depression when shortage of capital available for home building purposes has been so acute that this branch of construction has fallen off greatly, while other forms of credit have been available throughout the depression. In order to enable the purchase of homes on what amounts to the installment plan, it is necessary to place first and, often enough, second mortgages. The building and loan associations have performed a great service in this field, but they cannot without assistance carry the burden. First mortgages, carried so largely by the savings banks and insurance companies, have been affected by competition with bonds and others forms of investment. Second mortgages, which are also necessary to many people, have, if we take into account commissions, discounts and other charges, risen in rates in many cities to the equivalent of 20 or 25 percent per annum, all of which not only stifles home ownership, but has added to the present depression by increasing unemployment in the trades involved.

"The finance question, however, is only one of many. Greater comfort and reduction in cost of construction in many parts of the country through improved design, the better layout of residential areas are all of first importance. The expansion and betterment of homes in its bearing upon comfort, increasing standards of living, and economic and social stability, is of outstanding importance.

"It is not suggested that the result of the Conference will be recommendations for legislation but rather a coordination, stimulation, and larger organization of the private agencies. There, however, needs to be a study of the mortgage laws of many States with view to more intelligent attitude to the home builder.

"The heads of the following associations have been asked to act as initial members of a planning committee for the Conference:

American Civic Association

American Farm Bureau Federation

American Federation of Labor

American Home Economics Association

American Institute of Architects

Associated General Contractors

Association of Life Insurance Presidents

Better Homes In America

Chamber of Commerce of the United States

General Federation of Women's Clubs

National Association of Builder's Exchanges

National Association of Real Estate Boards

National Congress of Parents and Teachers

National Farmers' [Educational and Cooperative] Union

National Grange

Russell Sage Foundation

Savings Bank Division, American Bankers Association

United States League of Building and Loan Associations

Women's National Farm and Garden Association

Others will be added.

"Mr. John M. Gries, who for several years has been Chief of the Division of Building and Housing in the Department of Commerce, will act as Executive Secretary.

"The date of the Conference will be determined by the planning committee. Funds have been provided privately to cover the entire research and other activities of the Conference."