340 conscientiou left in any mitment ce the insurin 4. Remo numbers time may will recei 5. The ment in benefit g It is added t (b) of require agree the pl proces of th men: to r im] pr re T U DESIGNED FOR SINGLE PEOPLE THE NEEDS OF 2 MILLIONS least 2 million American citizens for whom we believe that be specially designed; and some of them are already in dire need eople are very worthwhile citizens, and yet are pushed around es to an unsuspected extent, especially as they get older. rring to the single women in America who are over the age of nstitutions like the YWCA take care of those who are below that often happens that, as a single woman gets near the retiring age, to leave accommodation where she has lived possibly for many → modest and within range of possibility, and also to allay any r trying to take on more than we can fulfill, only 4 percent of the we are expecting to help, which is 1 person in 25. of single people have been curiously omitted from housing debates. at there should be housing specially designed for those having pased 0, and so designed that the tenant may expect to continue living age. There are definite points where housing designed for single · differ from housing designed for families, and we have spent time, nght, and money in developing a model design to meet the needs ple. forced to consider the housing of single people from a national A local project was too small to interest those with big money. a national standpoint it is proving difficult; but it would have been from a local standpoint only. Legislative people as a whole are not unless something has a national aspect, because it must touch their ituents. An architect is interested when his work may be repron enough for him to receive sufficient remuneration for the expense ng the first plan on a nonprofit basis. The same is true with regard zation, legislation, contracting, financing, and all other phases of ent. rsons for whom we are catering are women living alone, many of whom at their lives working conscientiously outside the home, or women whose have died and whose children are on their own (or would be if they t obliged to live together for lack of just such housing as that which iming at providing), or widows who have never had any children. Single women often occupy houses or apartments which could serve for whole - just in need of such accommodation. ey and undisputed ownership, even though their tenancy is limited to one all be deeply appreciated by the tenants and do much to lessen the strain in later life, might lead to unbalance and possibly beerming a ward of te. One room is all that is essential for a single person's happiness, if it d of room we mean to provide, and it is all that is wise for an aged person responsible for. There will be a healthful sense of security in being wrE 's own place permanently. There is watery in company for persons and ty, and there are also certain biz adiantazes which the tenants wil ate as they become old. A great dea, of rewaren has been divertaken e kind of housing best mited to stazie peonie h reasearch has also been done on methods of financing and the founders project originally experted that a sponsor would be forthcoming to supply quity needed for getting a mortzaze insured by The Federa. Housing AL stration. It was not found ea×7. nowemer, to obtain such sponsora. The deinerme housing act which was Toned on in the spring of 1990 and lost tree votes, originally provided for the wanting pic oh would of course have provided money w... • : .. d. and ran.4.7 trust fund plan we propose wood pa. d apen a ennder and more mutual baton, we think. "De of the original features of this zenfone Cents before a building (a mare mas There should be provided a means, through the special trust, of making use of private investment capital for long-term loans at low interest rates for financing the development of housing projects designed for single people as members of nonprofit organizations. This trust should make possible the investment of private capital through the same type of guaranty as has been so successfully used in the mortgage-insurance system of the Federal Housing Administration. The trust should also be so designed as to make this program a selfsustaining program, similar to the FHA, with adequate protection to the Government by a specific insurance fund reserve for possible losses, to be built up by an annual premium charge of one-quarter of 1 percent of the outstanding loan balance paid by the borrowers, and by additional protection against possible losses, in the form of a cushion of private capital supplied by the borrowers through the purchase of units in the trust, in an amount equal to 20 percent of the original principal amount of the loan. The Government should supply the initial capital through the purchase by the Secretary of the Treasury of up to $10illion of capital stock in the trust, or encourage private individuals to do so. However, when the privately subscribed share capital reaches $5 million the Government stock would be retired, dollar for dollar, as additional private share capital was paid in. The $10 million of capital initially supplied by the Government would thus be replaced with $15 million of privately subscribed share capital. This private share capital could be supplied by beneficiaries or others, including States or municipalities. The total amount of obligation which the trust should issue and have outstanding at any one time should be limited to $100 million, all of which would be private investment. Of this maximum authorization, $10 million should become available by July 1, 1954. This program should use essentially the same form of organization as is used in the case of the Federal home loan banks. It would combine the best features gained in the course of more than 15 years' experience with the FHA and the Federal home loan banks, 2 of our successful means of Government assistance to private enterprise in housing. Secondly, we suggest it should provide for the necessary technical assistance and advice in the organization of self-help housing trusts and similar nonprofit organizations, and for the planning, financing, development, construction, and operation of the various housing projects. Thirdly, we feel strongly that it should make limited financial assistance, in the form of preliminary advances of funds, available to soundly organized self-help housing trusts and similar nonprofit organizations to enable them to develop specific plans for their housing projects. As far as we know, ours is the only organization devoting itself to paragraph (g) of section 213 of the Housing Act of 1950, and we are making strenuous efforts against heavy odds to promulgate this program, which is so much needed by at least 2 million persons. An analysis of this need and of our efforts to meet it is in a separate document submitted herewith. Senator BRICKER. That will be made a part of the record. (The document referred to follows:) HOUSING DESIGNED FOR SINGLE PEOPLE THE NEEDS OF 2 MILLIONS There are at least 2 million American citizens for whom we believe that housing should be specially designed; and some of them are already in dire need of it. These people are very worthwhile citizens, and yet are pushed around by circumstances to an unsuspected extent, especially as they get older. We are referring to the single women in America who are over the age of thirty or so; institutions like the YWCA take care of those who are below that age. It quite often happens that, as a single woman gets near the retiring age, she is asked to leave accommodation where she has lived possibly for many years. So as to be modest and within range of possibility, and also to allay any thought of our trying to take on more than we can fulfill, only 4 percent of the need is what we are expecting to help, which is 1 person in 25. The needs of single people have been curiously omitted from housing debates. We think that there should be housing specially designed for those having pased the age of 30, and so designed that the tenant may expect to continue living there in old age. There are definite points where housing designed for single people must differ from housing designed for families, and we have spent time, energy, thought, and money in developing a model design to meet the needs of such people. We were forced to consider the housing of single people from a national standpoint. A local project was too small to interest those with big money. Even from a national standpoint it is proving difficult; but it would have been impossible from a local standpoint only. Legislative people as a whole are not interested unless something has a national aspect, because it must touch their own constituents. An architect is interested when his work may be reproduced often enough for him to receive sufficient remuneration for the expense of providing the first plan on a nonprofit basis. The same is true with regard to organization, legislation, contracting, financing, and all other phases of development. The persons for whom we are catering are women living alone, many of whom have spent their lives working conscientiously outside the home, or women whose husbands have died and whose children are on their own (or would be if they were not obliged to live together for lack of just such housing as that which we are aiming at providing), or widows who have never had any children. Single men and women often occupy houses or apartments which could serve for whole families just in need of such accommodation. Privacy and undisputed ownership, even though their tenancy is limited to one room, will be deeply appreciated by the tenants and do much to lessen the strain which, in later life, might lead to unbalance and possibly becoming a ward of the State. One room is all that is essential for a single person's happiness, if it is kind of room we mean to provide, and it is all that is wise for an aged person to be responsible for. There will be a healthful sense of security in being sure of one's own place permanently. There is safety in company for persons and property, and there are also certain big advantages which the tenants will appreciate as they become old. A great deal of research has been undertaken on the kind of housing best suited to single people. Much reasearch has also been done on methods of financing, and the founders of the project originally expected that a sponsor would be forthcoming to supply the equity needed for getting a mortgage insured by the Federal Housing Administration. It was not found easy, however, to obtain such sponsors. The middle-income housing act which was voted on in the spring of 1950 and lost by three votes, originally provided for the settingup of a giant revolving fund which would of course have provided money with which to build, and rapidly. The trust fund plan we propose would build upon a sounder and more mutual foundation, we think. One of the original features of this project is that of lining up the prospective tenants before a building is started. This is in accordance with section 213 of the National Housing Act of 1950, but unfortunately doing this has led to much misunderstanding and violent criticism on the part of those who are accustomed to projects being built under section 207, which allows for buildings to be sponsored first and the tenants found afterwards. It has even led to officials stating that a sponsor has no place in the plan. Hence the preference for section 207. 44750-54-pt. 1-23 This is a very modest effort to set forth the values of the cause of housing for single people, which was born in a spirit of self-helpfulness and brought up through the unselfish devotion of many who contributed services with either no reward or at most very little. If the same effort had been paid for on a normal commercial scale, it would have cost many times as much as all the actual cash made available. Ours is a plan to meet new needs, in the same way as the return of a large number of veterans from the First World War presented a new social problem to the Nation and led to the present highly developed DAV Association and Veterans' Administration. Statistics show that there are more single people in the country than there have ever been-that they will increase in numbers-and that some 20 years of life expectancy have been added to them. We believe we are, so far, the pioneers of housing specially designed for this group of citizens. Senator BRICKER. Are there any further comments? Mrs. HOUSER. That is all. Thank you. Senator BRICKER. Thank you. The next witness will be Mr. Efrem A. Kahn, of the Lindenwood Realty Corp. STATEMENT OF EFREM A. KAHN, LINDENWOOD REALTY CORP., NEW YORK, N. Y. Mr. KAHN. Mr. Chairman and members of the committee, it is a privilege and an honor to appear before you today to discuss certain portions of Senate bill No. 2938 before you for consideration, particularly those sections which deal with cooperative housing, generally known as section 213 of the proposed Housing Act of 1954. I wish to state that I have been actively identified with the section 213 cooperative program since its inception and together with my associates have completed during the last 2 years over 4,000 multiple dwelling units under said program in the county of Queens, city of New York, aggregating insured loans in excess of $35 million. I also happen to be the chairman of the labor-management group of the electrical industry of the city of New York, which group has sponsored and is now in the process of completing a 2,000-unit multiple-family project in the county of Queens under the limited dividend corporate laws of the State of New York. Presently I am engaged as a builder-sponsor in processing a section 213 project to be located in Queens County on approximately 140 acres, which site has been assembled over a period of the last 14 months and which project it is anticipated will accommodate approximately 2,700 families of the middle income group. It is also anticipated in connection with this project that the FHA-insured loans will approximate $27 million. The proposed legislation, particularly in regard to increases in maximum insurable loans, as provided in section 119 of the proposed amendments amending section 213, is a step forward and commendable and, no doubt, will encourage the initiation of cooperative projects. The section 213 program is a worthwhile endeavor in that the muchneeded housing accommodations for the middle income group is furnished at less cost than any other comparable FHA program except public housing. The increased maximum insurable mortgage limits, if granted, would make it possible for the middle income group to acquire their dwelling accommodations at a cost within their means. |