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Forum's stress on the great default will also affect the insurance companies and banks who are lending money on non-608 apartments and commercial buildings. A close analysis will disclose that their typical mortgage amount has about doubled over 1939. I know of no 608 loan which has exceeded 100 percent of a 207 loan of 1939. If the 608 mortgage set-up is wrong, then we must condemn every maximum private loan made.

The condemnation of efficiency units in 608 is both unfair and unproven. The truth of the matter is that, as a 608 sponsor, I can honestly state that the efficiency apartments are the first to rent and stay rented. The proof in longterm occupancy, as any owner of apartments during our last depression will testify, is that the so-called efficiency apartments stayed rented at all times, unless the apartments were built in a suburban area where they did not belong in the first place.

The FHA court fetish could possibly have been overdone. I am one architect who literally developed high blood pressure while in constant war with the land-planning section of F'HA over site layout, in which work I take particular care and pride. However, when I look back in retrospect I believe the fault lay with all concerned. Land planning is a field by itself and very few architects have the touch in developing a suitable site plan. The constant work-load pressure on the various FHA architectural sections has led them to leave site-planning criticism to the overworked and undermanned Land Planning Section, which in turn took on a shell consisting of a court, a reangle and a cul-de-sac. Quite a few lay-outs which I had to jam down the throats of experts appeared later in the experts' book as recommended lay-outs. Perhaps we should all go back to school to learn how to build a $10,000 apartment for $7,000 without the sponsor providing the $3,000 difference.

Forum’s solution in the substitution of 207 for 608 brings a hearty guffaw to this pioneer, for 207 was always fraught with red tape, strict compliance to rent schedules, and profit limitations. A 207 can only be built where taxes are extremely low. The real bugaboo in Forum's desire for modern thought in apartments is that, if the cost figures disclose a greater differential than 5 percent over the capitalized figures, then the project must be abandoned altogether. I believe that 207 will work when some of the good sections of 608 are added to it.

Senator SPARKMAN (presiding). The committee will now stand in recess.

(Whereupon, at 4:20 p. m., the committee recessed.)

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