less than 10 per cent of the cost of land with improvements, less depreciation. These agreements also require the Local Housing Corporation to sell (subject to 30 per cent or over mortgage to cover excess war cost) to officers or employees of the shipbuilder desiring to purchase lots improved with buildings as herein contemplated, but not more than one lot to any one purchaser except with the approval of the Fleet Corporation. During the mortgage term the Fleet Corporation also has the right to regulate policies determining the health, welfare and housing conditions, and upon release, the public dedication of public buildings, streets and improvements.
Provision is also made for assumption by the Government of losses due to excess war cost “in no event exceeding 30 per cent” of appraised value of the property at a period between 2 and 5 years after peace is declared. In such an appraisal it is conceivable that the increased value of land might offset the decreased value of the building. While authentic figures are not available, it is possible that original appropriations, based on estimates necessarily higher than normal, will be exceeded by from 30 to 60 per cent! Must the worker lorever pay rent based on the excess war cost over and above the 30 per cent maximum to be written off by the Government? Failing to collect such high rents, will the village become deserted or the Local Housing Corporation bankrupt?
This matter of normal cost is of prime importance. Until the whole excess cost is written off by the Government, the properties cannot become stabilized so that the worker will know the price he must pay to own his home, or upon which his rent must be based to produce the normal income and maintenance charges. This will have a most important bearing on readjustment, and should not be delayed any longer than necessary.
In Philadelphia over 2000 houses of the commonplace two-story box row type were built for the Fleet Corporation by lump sum contract and occupied by Hog Island war workers. Soon after the armistice was signed and the draft cancelled, men previously exempt because of war work suddenly vacated hundreds of these houses as well as others of the less desirable type or location. Rents which have averaged $5 per room per month have begun to drop, but have not yet reached the pre-war average of $3. A “Buy Your Home” campaign has been started in the city, and it is now announced that these houses are to be sold immediately at their market value, which is less than cost. First choice is to be given Flog Island workers, and the remainder to any others who wish to buy! These buildings probably met a temporary urgent need of the Government at a comparatively small loss, but the city
has gained nothing over its usual type of commonplace housing. Due to the cessation of the usual operative building, these houses will probably be in some demand so long as the shipyard is operated, but should this now called “temporary shipyard” be abandoned, it is quite possible that, due to the location of some of these houses, present values will shrink considerably, and the “deserted house” be at the loss of the present-day purchaser on whom the Government is about to unload. Such houses in metropolitan districts are, however, much less likely to be deserted than those in more isolated villages.
Activity in seaboard shipyards and accessory manufactories has greatly decreased, causing cessation of overtime and dropping of the double shifts of labor. Most of these plants are, however, planning to continue not only the completion of present Government contracts, but also new private orders, which are expected as necessary to replete the world loss of tonnage. Annual repairs to ships built in these plants will also require a large regular force. The men attracted from the interior by high weekly wages have naturally cut the extra expense of living away from home, and have vacated, mainly, the boarding or lodging houses. Large numbers of workers were also attracted from the interior to build the housing, thus temporarily increasing the already acutely crowded communities. Many of these workers have returned to their home cities. The acute demand for housing has, therefore, even in metropolitan districts, greatly subsided. Also the total number, probably not
over 30,000, permanent houses recently erected will accommodate such a small proportion of the total normal labor force of these new plants (generally less than 10 per cent) that from present indications there will be few deserted houses in
metropolitan industrial districts adjacent to these * plants. During the war transportation was improved, and many workers have daily traveled “on a strap” distances up to 40 miles to and from their work, at a cost of from 20 to 40 cents per day. Probably at least 50 per cent have traveled over 5 miles each day. With the return to normal wages men cannot afford this time, money and lost energy, and should welcome an opportunity to obtain new and attractive homes within walking distance of the plant.
Whether these villages will or will not be “deserted” is largely dependent upon the early completion of the necessary amenities. Good shops, schools, churches, amusements and recreational attractions must be provided, as well as good walks, well planted and paved streets and parks, or the worker will prefer to live and work where these are to be had. These are most vital to the isolated industrial community, located near munition or
Provision is also made for assumption by the Government of losses due to excess war cost “in no event exceeding 30 per cent” of appraised value of the property at a period between 2 and 5 years after peace is declared. In such an appraisal it is conceivable that the increased value of land might offset the decreased value of the building. While authentic figures are not available, it is possible that original appropriations, based on estimates necessarily higher than normal, will be exceeded by from 30 to 60 per cent! Must the worker lorever pay rent based on the excess war cost over and above the 30 per cent maximum to be written off by the Government? Failing to collect such high rents, will the village become deserted or the Local Housing Corporation bankrupt?
This matter of normal cost is of prime importance. Until the whole excess cost is written off by the Government, the properties cannot become stabilized so that the worker will know the price he must pay to own his home, or upon which his rent must be based to produce the normal income and maintenance charges. This will have a most important bearing on readjustment, and should not be delayed any longer than necessary.
In Philadelphia over 2000 houses of the commonplace two-story box row type were built for the Fleet Corporation by lump sum contract and occupied by Hog Island war workers. Soon after the armistice was signed and the draft cancelled, men previously exempt because of war work suddenly vacated hundreds of these houses as well as others of the less desirable type or location. Rents which have averaged $5 per room per month have begun to drop, but have not yet reached the pre-war average of $3. A “Buy Your Home” campaign has been started in the city, and it is now announced that these houses are to be sold immediately at their market value, which is less than cost. First choice is to be given Flog Island workers, and the remainder to any others who wish to buy! These buildings probably met a temporary urgent need of the Government at a comparatively small loss, but the city
has gained nothing over its usual type of commonplace housing. Due to the cessation of the usual operative building, these houses will probably be in some demand so long as the shipyard is operated, but should this now called “temporary shipyard” be abandoned, it is quite possible that, due to the location of some of these houses, present values will shrink considerably, and the “deserted house” be at the loss of the present-day purchaser on whom the Government is about to unload. Such houses in metropolitan districts are, however, much less likely to be deserted than those in more isolated villages.
Activity in seaboard shipyards and accessory manufactories has greatly decreased, causing cessation of overtime and dropping of the double shifts of labor. Most of these plants are, however, planning to continue not only the completion of present Government contracts, but also new private orders, which are expected as necessary to replete the world loss of tonnage. Annual repairs to ships built in these plants will also require a large regular force. The men attracted from the interior by high weekly wages have naturally cut the extra expense of living away from home, and have vacated, mainly, the boarding or lodging houses. Large numbers of workers were also attracted from the interior to build the housing, thus temporarily increasing the already acutely crowded communities. Many of these workers have returned to their home cities. The acute demand for housing has, therefore, even in metropolitan districts, greatly subsided. Also the total number, probably not
over 30,000, permanent houses recently erected will accommodate such a small proportion of the total normal labor force of these new plants (generally less than 10 per cent) that from present indications there will be few deserted houses in
metropolitan industrial districts adjacent to these * plants. During the war transportation was improved, and many workers have daily traveled “on a strap” distances up to 40 miles to and from their work, at a cost of from 20 to 40 cents per day. Probably at least 50 per cent have traveled over 5 miles each day. With the return to normal wages men cannot afford this time, money and lost energy, and should welcome an opportunity to obtain new and attractive homes within walking distance of the plant.
Whether these villages will or will not be “deserted” is largely dependent upon the early completion of the necessary amenities. Good shops, schools, churches, amusements and recreational attractions must be provided, as well as good walks, well planted and paved streets and parks, or the worker will prefer to live and work where these are to be had. These are most vital to the isolated industrial community, located near munition or