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live, of the security of children, and of the forces for positive citizenship which I feel all of us in this room would agree upon as desirable goals for democracy.
(Mr. Patman was called from the committee room, and Mr. Hays took the chair.)
Mr. BRYANT. I particularly included what I considered to be as concise a statement of this interest-rate problem as possible, which appears to be on everybody's mind, and properly so. I would point, specially to the last section on the fact that cooperatives will have an important yardstick function. The last witness was asked in detail whether cooperatives could build more cheaply, and I think the answer is that they can actually construct more cheaply through efficiencies of construction, having materials assembled, through having over-all financing.
There is one particular instance which will be gone into later by a witness from the cooperative league, where they did make very sharp savings on cost of construction. I think we better take the time left on questions.
Mr. MULTER. I have no questions.
Mr. DEANE. Usually housing cooperatives have been viewed with suspicion by many lending institutions who may have reported a loss during the 1930's. Has there been sufficient experience to give facts on the subject?
Mr. BRYANT. Yes. I think it should be very clearly distinguished as to what is a bona fide cooperative. During the 1920's the National Association of Real Estate Boards had a cooperative division with sections in over 90 cities in the United States. But these were for promoters of cooperatives, who simply built the apartments and sold them at a higher price, so that there was more water in this type of rental property than other types. During the 1930's many of these promoter cooperatives went into bankruptcy, as did a tremendous proportion of all rental properties and some private properties, so there has to be a distinction between these two types of housing cooperatives, the bona fide and the promotional. These cooperatives that have got
. under way in the last 4 years have had financing as their primary difficulty. They have had extreme difficulty in getting private financing, even where they have had many times more equity than speculative builders, and they have also had extreme difficulty in getting approval by FHA, so it is a little unfair for bankers to turn around and say that cooperatives are risky, after they have done everything they could to delay and kill these cooperatives.
Mr. DEANE. As you know, the State of New York has a tax exemption so far as cooperatives are concerned. I asked Mr. Foley yesterday if he thought that with the initiation of a national cooperative housing program would it tend to create tax-exempt programs in various States?
Mr. BRYANT. No; I do not think it would, Congressman. The people in New York have long experimented with tax exemption in an effort to get more housing built, but this present legislation, H. R. 6618, I know has been written with a view toward self-supporting, nonsubsidized projects, so there is no proposal for tax exemption or subsidy of any kind. That is purely up to a local community, and I think by and large it would not happen.
Mr. DEANE. Because of your experience and since some of us come from semirural or smaller urban areas, in what way can this program be related to the rural or small urban areas?
Mr. BRYANT. I note that Congressman Rains asked that same question, too; and I think it should be answered very definitely that the most successful cooperatives have been either in a socially homogeneous group like a union or veteran group or even a church group. Many of the more successful ones have been in small towns. I personally know of successful housing cooperatives of 7 houses, 10 houses, 20 or 30 houses because the people in them know each other as in a small town.
Mr. DEANE. Right at that particular point, Mr. Chairman, with permission of the committee, would you be able to submit for the record actual cases and places where such cooperatives have successfully been planned and initiated and are now in existence ?
Mr. BRYANT. Yes; a list could be submitted.
Mr. Bryant. Yes; that could be provided. I have one here just put through by the American Legion in Blackwell, Okla., for 60 houses.
(The list above referred to is as follows:)
PARTIAL DIRECTORY OF COOPERATIVE HOUSING ASSOCIATIONS IN THE UNITED STATES,
Arizona-Coolidge: Casa Grande Valley Farms, Inc., Route No. 1.
Ashdown: Little River Cooperative Leasing Association
Jerome: Jerome Cooperative Association, Inc.
Berkeley: Planned Community, Inc.
28 Los Angeles : Mutual Housing Association, Inc., 626 North Robertson Boule
vard, Los Angeles 46 Palo Alto : Peninsula Housing Association, Inc., Box 248, Palo Alto San Francisco :
Community Cooperative Development Corp., room 301, 251 Dearny Street
Veterans Housing Cooperative
Mutual Home Ownership Committee, Channel Heights
Housing project, 1421 Parana Court, San Pedro Santa Monica : Care of Fred Mathes, 2425 Washington Avenue, Los Angeles Connecticut-New Haven:
Cooperative Homes of West Haven, Inc., 19 Congress Avenue
Housing Association of Greater New Haven, 19 Congress Avenue Colorado :
Silt: Our Cooperative Association
Denver : Mile High Housing Association, 2030 Vine Street District of Columbia :
Allied Printing Trades Co-op Housing Group, care of William Schreiber, 175
Todd Place NE.
1 Sources : National Cooperative Mutual Housing Association list as of November 22, 1948; U. S. Department of Labor, Bureau of Labor Statistics, Directory of Consumers' Cooperatives in the United States, Bulletin 750, revised June 1947; and Co-op Magazine, June 1946, pp. 6–7.
District of Columbia—Continued
Bannockburn Cooperators, Inc., 1129 Vermont Avenue NW., Washington 25
Chicago Cooperative Housing Society, care of Benjamin Ciani, 918 Lytle
Van Buren Street, Chicago 24
Waukegan : Waukegan Co-op Housing Association, 695 McAlister Avenue Indiana :
Indianapolis: Planner House Homes, Inc., 333 West Sixteenth Street, In
dianapolis 2 Lafayette: Lafayette Cooperative Homes, care of San Perlis, Department of
Mathematics, Purdue University
Beacon Heights Mutual Housing Association
Walnut Grove Mutual Housing Corp., 2717 Woodmere Lane
Road, Louisville 4 Louisiana :
Lake Providence: East Carroll Parish Farmstead Association
Transylvania : Transylvania Association, Inc. Maryland-Greenbelt: Greenbelt Mutual Housing Association Massachusetts—Boston: Co-op Housing Association of Greater Boston, 1430
Massachusetts Avenue Michigan:
Center Line: Kramer Homes Acquisition Committee, care of C. H. Lindow,
8508 Nathan Hale Dearborn: Homes Associated, care of Mark Hensen Detroit :
Cooperative Homesteads, care of Gale Randall, 477 West Alexandrine
Riverside Homes, Inc., care of Denal Monson, 90 Arden Park, Detroit 2 Rock: Rock Cooperative Co., Box 267 Royal Oak; Cooperative Homesteads, Inc., Route No. 4, Box 879
Wayne: Norwayne Association
Circle Pines : Circle Pines Development Corp.
ley Erickson, 3247 Benjamin Street NE. St. Paul:
AVC Housing Committee, 417 New York Building
Cleveland : Bolivar Homestead Corp., Box 591
Swan Lake: Tallahatchie Cooperative Leasing Association
Audobon Park: Audobon Mutual Housing Corp.
New Brunswick : Veterans Building Cooperative, 457 Hamilton Street
Amalgamated Cooperative Apartments, 80 Van Cortland Park South,
Workers Colony Corp., 2700–2800 Bronx Park, East
Bay View Home Association, 671 Forty-seventh Street
· Victory Homes Association, 672 Forty-sixth Street New York:
Amalgamated Dwellings, Inc., 504 Gerard Street
Hundred and Sixtieth Street
eighth Street Sydney Hillman Homes Usonia Homes--A Cooperative, Inc., 255 West Eighty-eighth Street,
care of Apartment 1330 Schenectady : Westwood housing project White Plains: Veterans Cooperative Housing Association, care of Bleakeley,
Pratt & Walker Brooklyn:
Cooperative Community Homes, 91 Pulaski Street
Veterans Cooperative League, 1116 Kings Highway
Bismarck Housing Cooperative
Rochdale Housing Cooperative, care of M. P. Bauman, 11619 Detroit
Dayton Mutual Homes, Inc., 104 Malcolm Drive, Dayton 10
Oak Park Cooperative Housing Association, care of Charles McGuerin Lorain : Lorain Veterans Housing Association, 1017 Tenth Street Pennsylvania:
Feasterville: Bryn Gweled Homesteads, Gravel Hill Road
Street, Philadelphia 7
Pittsburgh: Mutual Homes Co-op Association Texas—Dallas: Dallas Park Mutual Ownedship Corp., 100 Duncanville Avenue,
Mutual Housing Association, care of Marion Wilson, K-27 Navy-Way,
Crestwood : Wisconsin Cooperative Housing Association, post office, Madison,
Route No. 1 Fon du Lac: West Division Street Co-op, care of Julia Gibbons, secretary,
150 Sixth Street Milwaukee :
Milwaukee Cooperative Homes, Inc., care of Alfred G. Reindl, 5070
North Thirty-fifth Street, Milwaukee 9
Riverside Community Housing Cooperative
Superior: Cooperative Builder
Shoudy, 106 Lynn Street
Association, Inc., 934 Maunakea Street
Arecibe: Cooperative De Hogares, care of Jaime Veras, Box 11
Perez, department of economics, University of Puerto Rico
Mr. DEANE. Why would a family apply for a present FHA-type loan on a single house if they could join a cooperative and get cheaper financing?
Mr. BRYANT. That is a very good question and should be answered clearly. My feeling is, and I think you would agree, that Americans
, are noted for wanting to get ahead in the world and to do things better and that, if a man can afford a twelve- or fifteen- or twenty-thousanddollar house, the chances are very small that he would want to live in an $8,000 house. If there are a few higher-income families who are part of a cooperative because they are members of the same lodge or group, that would strenghten the cooperative and help provide leadership, so I would be opposed to it, but I really see no element of competition. Cooperative housing will find its own level.
Mr. DEANE. In setting up these cooperatives in smaller communities, what do you think shouid be a sound reserve structure?
Mr. BRYANT. We have talked about less risk in these cooperatives, and I included in my thinking that there should definitely be reserves