SALE OF HOUSES.

Before offering for sale any houses built by the corporation, the selling values have been appraised by boards of survey, appointed by the corporation for cach project, consisting usually of a realtor as chairman, a civil engineer, a contractor or builder, and two local labor men. They were instructed to appraise the fair market value, considering that the houses are to be sold to individual home owners upon payment of at least 10 per cent cash and 1 per cent per month of the balance, including interest at 6 per cent on the amounts remaining from time to time unpaid.

The reports of these boards of survey when approved by this division were submitted to the executive committee for approval and then ratified by the board of directors, who authorized the sale of the properties at the appraised values. In considering these reports the directors have considered the estimated costs and the rental values. The appraisals which have been approved vary from 52 to 73 per cent of the costs, the directors being satisfied in each case that the difference is properly chargeable to war loss.

It was the intention of this division to sell all the houses of the corporation before this date, but the demands of the investigating committee of the subcommittee of the Senate Committee on Public Buildings and Grounds upon the corporation for reports and information, as well as the uncertainty caused by the investigation, made the carrying out of the plans of this division absolutely impossible.

As shown in the accompanying detailed reports, selling campaigns of houses have been started in the Rock Island district, Bridgeport, New Brunswick, Pompton Lakes, and Aberdeen projects. The sales in the Rock Island district were the first authorized, and the terms of sale offered were easier than those since offered elsewhere, in that initial monthly payments of about $10 a month more than the monthly rental were allowed upon a contract calling for delivery of a deed when such payments should amount. to 10 per cent of the purchase price. A few such contracts have been recommended for approval in other districts where special circumstances seem to warrant them. The board of directors also authorized the selling representatives to accept Liberty

bonds at par up to 10 per cent of the sales price, provided they were satisfied that the bonds were purchased by the owners at par, the sales contracts being made to show the sale to be made in consideration of part cash and part Liberty bonds.

The general plan of a selling campaign has been to appoint a selling representative and authorize him to sell a certain project at the appraised values and giving him authority to employ necessary assistants and to incur necessary expenses, all expenses to be paid from the proceeds of the sales. Plans are made to keep the total cost of the sales below 5 per cent of the amount of the sales. Copies of instructions to selling representatives and sales contracts are here given, which show the detailed plans of the campaigns and sales. This division has drafted uniform skeleton forms of deeds and mortgages to be used in the sale of houses, but they have not yet been approved.

Every project presents its own individual problems, just as the value of a house varies according to its location. In the Rock Island district all the tenants had been well educated to the idea of eventually buying the houses, and the majority bought the houses they occupied, whereas in Bridgeport, Conn., the tenants had not been so educated and a very aggressive campaign had to be carried on to make any sales.

The results to date of the sales show that the prices have not been placed too high and the good will of local real-estate owners show that they have not been placed too low. In the opinion of this division it would be as great a wrong to the country to sell the houses for less than a fair market value as it would be to hold them for too high a price, for the need for houses is so great that real estate values must not be depreciated. The fact that most of the purchasers never before owned houses or probably even contemplated buying houses called for the services of expert salesmen, this division being satisfied that very few houses would be sold to individual home owners if simply placed upon the market at a fair market value. The education resulting in the purchase of homes is considered one of the best byproducts of the work of the corporation.

This division still believes that the Government should not build any more houses, unless another

similar emergency should arise, and that it should not continue to own houses. It does believe, however, that the real estate bought and sold by the Government should be bought and sold through experts at fair market values in order that the people of this country should no longer think that they can sell land to the Government at exorbitant figures and that they can buy it at bargain prices. This country to-day needs more houses, but the cost of building houses having increased about 70 per cent in six years, investors are not going to build until the people are willing to buy the houses at a fair profit or pay an adequate rental. As most of the people of the country are tenants instead of home owners, there is an opportunity for the Government to educate the people regarding the sale and rental values of real estate and thus make it possible for investors to build to meet the needs of the country. This division is trying to bear these points in mind while selling the houses of the corporation.

DISPOSAL OF VACANT LAND.

The work of the division since July 1, 1919, has consisted chiefly of completing settlements of contracts and requisition proceedings for land previously acquired, appraising the completed projects, and organizing and starting a selling program. Reports are annexed showing the progress made in each of said activities.

The most difficult problems of settlement for properties acquired have been those arising out of the requisition of lands in southeast Washington, and Glenwood Park, Norfolk, Va. In both cases the former owners objected to the amounts of compensation awarded and in most instances refused to settle upon the terms offered. In the case of Washington,

some improvements had been made, such as grading, the laying of foundations, the installing of sewers and water mains, and the building of temporary dormitories and a cafeteria on part of the land, but in Glenwood Park no work was done. The improvements on the Washington properties were appraised and the former owners were offered the privilege of accepting the compensation awarded or receiving reconveyance upon payment for the improvements. This resulted in a few more settlements, but the reconveyances have been delayed by difficulty in getting the titles examined and their defects remedied. The former owners of the Glenwood Park lots were offered either compensation or reconveyance, and although most of them considered the compensation inadequate the owners of only 96 lots out of 1,006 lots requisitioned have agreed to accept reconveyances. In this case also the delays have been chiefly due to difficulties regarding examination and settlement of titles. All the lands retained in southeast Washington and the improvements thereon have been advertised for sale upon sealed bids January 15, 1920, and a committee of four realtors of Washington has been appointed to stimulate the sale and to advise this division regarding the acceptance of the bids. Plans have also been made for the public sale by auction or under sealed bids of all the lots in Glenwood Park whose owners have not requested reconveyance.

In selling vacant unimproved lands the policy of this division has been to offer the lands for sale upon sealed bids after reasonable efforts have been made. through selling representatives to obtain the best possible offers. When an offer has been received which seems to this division to be fair, the land is advertised for sale upon sealed bids to be opened on a specified date.