How To Obtain Controlled Materials For Reddence Building

Procedures to be followed in obtaining controlled materials for use in residential construction under the amended regulations of the Controlled Materials Plan announced recently by the Nationai Production Authority were described recently by Raymond M. Foley, Administrator of the Housing and Home Finance Agency.

Whereas previously, construction came under CMP only on a permissive basis, the new regulations require that all construction be authorized and controlled materials be obtained under the Controlled Materials Plan beginning with the fourth quarter of 1951.

Under delegation of authority from Manly Fleishmann, Administrator of the National Production Authority, the Housing and Home Finance Agency administers the controls regulating residential construction, both public and private. Mr. Foley, at this time, announced delegation of responsibilities for administration of controls over private construction to the Federal Housing Administration and over public construction to the Public Housing Administration.

The NPA action revoked the basic construction order, M-4, which required Government permission to begin construction of a single family residence containing more than 2,500 square feet of floor space or of an apartment structure of more'than three stories. This order is now replaced by Order M-4A and Direction I to CMP Reg. 6. Even though a builder may have

Ne* Law Cuts Down Payments On Homes

Washington, Aug. 2l-The House unanimously passed and sent to the White House today legislation to lower the dowr.r payment needc-ci to buy a house costing $12,000 or less.

Senate-House conferees yesterday incorporated the crediteasing plan inro a compromise $135,000,000 defense housing bill. The Sen:rte promptly shouted its approval.

Under the "rider" the stiff hous:ng credit restrictions irn^ posed as part of the government's anti-inflation program would be relaxed as follows: received an authorization to construct under superseded M4, he must now comply with the provisions of the new regulations.

Flouses costing $7000 or less-veterans buying uncler the G'I Bill of Rights henceforth would need only four per cent down payment. Others would need 10 per cent.

$7000-$10,000-GI houses would require six per cent dowlr; othcrs 15 per cent.

$10,000-$12,000 -GI houses would require eight per cent dolvn; others 20 per cent.

For comparison, the Veterans Administration now requires a minimum 15.8 per cent down payment on $12,000 homes. Down payments of. 25,8 per cent are now on both F.H.A. insured and conventional financed housing.

The new regulations prohibit the comryencement ,or continuance of residential construction after September 30, 1951, unless the builder or owner receives an authorized construction schedule and a related allotment of controlled materials or unless the construction requires no more than the quantities of controlled materials obtainable by self-authorization.

In the interim period, August 3 to October 1, builders may, without special permission, start construction or continue construction already started of one-to-four-family. houses, provided that the quantity of controlled materials, including Class A products, needed after September 30, 1951, to complete such construction, does not exceed the amounts which may be obtained under the self-authorization procedure, Mr. Foley explained. While there are no restrictions on the quantity of controlled materials which may be used prior to October 1 in one-to-four-family homes, the use restrictions of NI-4A are effective immediately: These include prohibitions against the use of any aluminum and against certain uses of copper.

During the interim period, August 3 to October 1, builders of multi-unit residential structures need not obtain authorization to begin or continue construction already begun if the total controlled materials required for each structure do not exceed 25 tons of carbon steel and 2,000 pounds of copper and copperbase alloys, and if no aluminum, alloy or stainless steel is required. As in the case of one-to-four-family construction, the use restlictions of M-4A are effective immediately.

Multi-unit residential construction requiring more than these quantities of controlled materials may not be started or continued during this interim period unless specifically authorized after the builder has given the required information on form CMP-4C. Applications for authorization to begin or carry on private construction are to be filed with the nearest local office of the Federal Housing Administration, and those relating to public construction are to be filed with the appropriate regional office of the Public Housing Administration. However, no priority assistance for materials for delivery before October 1, 1951, wilt be available for any such construction.

Beginning with October 1, all residential construction must be specifically authorized, either by self-authorization as in the case of one-to-four-family structures requiring no more than stated quantities of controlled materials, or by an authorized construction schedule and allotment of materials, as in the case of all multi-unit structures.

Builders of one-to-four-family structures are permitted by the new regulations to begin immediately to use the self-authorization procedure in placing orders for controlled materials calling for delivery after September 30, 1951, within the following limits per structure:

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