Chicago Tribune from Chicago, Illinois • 105

Kticago OTrikne EEAL ESTATE AKD RENTAL SECTION 3A CLASSIFIED ADS AND NETS SUNDAY, NOVEMBER 22, 1970 REAL ESTATE AND RENTAL GUIDE Government Housing Role Increases Riveyfront SKGLEWILY HOUSES BUILT UR'DERGQYERNllENT FROORMIS AS A PER CENT CF ALL SINGLE-FAMILY HOUSING PRODUCTION! Plan City ASSISTED HOUSING UNITS STARTED UK1TS Washington's Hand In 50 of New Housing BY ALVIN NAGELBERG Real Estate Editor This year the federal government will play a role in the construction of almost half of all the single family homes started in the country. Much of the assistance will come thru mortgage insurance or guarantee programs. That's not surprising because the conventional mortgage market dried up thruout the country earlier this year. But it may be surprising that Uncle Sam also will provide direct subsidies for 156,000 homes, or 25 per cent of all the housing started. If you look at the figures and listen to the talk about new federal programs, you'll find the pace is accelerating.

At the moment, the government is a welcome partner because it provides "the only game in town." A shortage of capital for home loans, high interest rates, and soaring prices of homes has been slicing an ever increasing amount of families out of the conventional home buying market. The government has been stepping up its subsidy programs, and pushing secondary market operations which generate money for the mortgage market. Without the government, home building for low and moderate income families would have been dead a long time ago. But there are some doubts being expressed about the long term effects of the government's increased involvement. Some officials of the United States Savings and Loan League are worried about the extent of the subsidies and the resulting growing federal debt.

And they are worried about defects in the marketplace inflationary building costs and inadequate flow of capital to the mortgage market which has forced the government to take a bigger role in housing. Uncle Sam has been in the housing market for a long time. Back in 1892, Congress appropriated $20,000 to study slum conditions in big cities and during World War the government built housing. The government's involvement has ebbed and flowed with the demands of the market. Today, federal laws relating to housing and urban development ft.

1 Applauded Randall Cooper, executive director of the Chicago Central Area Committee, called a proposal to build new communities along the Chicago River "an excellent way to build new housing close-in without disrupting family life in that area." The proposal by the Chicago architectural firm of Holabird Root, featured in this section last Sunday, called for building new riverfront communities with commercial cores of offices and apartments flanked by housing, schools, and other services. The architects designed a prototype community which could be built any-' where along the river and could be adjusted in size to meet the demands for 10,000 to 100,000 persons. The architects also envisioned the new communities as being catalysts for the rehabilitation of old neighborhoods near the riverfront. Cooper said the proposal also "would help the beautificstion of a natural resource, the' Chicago River. "It's an ideal plan to accomplish several important things at one time." Robert Widdicombe executive director of the Home Builders Association of Chicagoland, also lauded the plan.

He said: "I would hope devices are made available by the city to make it attractive for the entrepreneur to come in and build." Nelson Forrest, executive director of the Greater North Michigan Avenue Association, said, "This is the type of plan which should be thoroly "exploredr" Any phase of this project would be in the 20 mo mi ISS2 1863 ISS4 1965 IS8S 1837 1033 I9S9 1970 SOURCE: FHA, VA, Bureau of Census, and esffmafos by NAHB Economics Department cover pages. Ctoart shows signincant increase in lederal government involvement in the nation's housing. During the 1960s, all govern New Methods Speed Construction public interest. It may be idealistic, but someone should be thinking along these lines." Bernard Weissbourd, head of Metropolitan Structures, a large-scale development firm which is building new offices and apartments in Chicago and a new town near Montreal, said, "The ment programs accounted for less than 25 per cent of the nation's single family housing. This share rose to 30 per cent at the end of the decade.

In the first eight months of the year, the government's share jumped to 41.6 per cent and by the end of 1970, economists at opening. Concrete is poured in and the slurry is recovered as it flows out. Spencer, White Prentis Inc. is building the slurry wall. Earl Krueger, of Jones McKnight Steel, Inc.

which supplied 500 tons of reinforcing steel, said the workers can A slurry wall, a relatively new technique in foundation construction, is being built around the site of the 109-story Sears Tower going up between Adams Street and Jackson Boulevard from Wacker Drive to Franklin Street. The wall is designed to provent the perimeter streets from shifting while the site is excavated. The idea is to dig a trench 216 feet wide, 20 feet long, and 60 feet deep, which will be filled with concrete and reinforced steel. To prevent the trench from collapsing, the workers pour in a mixture of clay and water which forms a slurry mixture with the consistency of buttermilk. This supports the side of the trench and seals any leaks.

When the trench is completed, a huge panel of two layers of reinforcing steel bars tied together is lowered into the build about four panels of the wall a week. The 75 panels should be completed by January, 1971. Gaston A. McKnight, president of Jones McKnight, a 25-year-old steel supplying firm, predicts the method will come into common use soon, especially in cities like Chicago. The slurry wall was first used in Chicago on the new building being put up by.

CNA Financial at Wabash Avenue and Van Burcn Street. It also was used on the World Trade Center project in New York City. Caisson Corporation is installing a slurry wall around the perimeter of the foundation for the 80-story Standard Oil Company llnd. Building on Randolph Street, east of North Michigan Avenue. Unlike other methods, sheet piling is imbedded thru the bottom of the trench before the concrete is poured.

John Randolph Jr. IuMMm? 7 i( Digging trench for slurry wall. Riverfront today. river, especially the south branch, provides some excellent large sites for new communities." The land is under used right now, he said. Dean L.

Fricano, a resident of Des Plaines, wrote that "this would prove to be a great asset in encouraging people to stay in Chicago, instead of moving to the 'bedroom Without a doubt Chicago is where everything is at." Architects of Holabird Root are expected to discuss the proposal with officials of the city planning department next week and then with Mayor Daley and several bankers. Massive Core Supports Thin Steel Frame the National Association of Home Builders predict Uncle Sam could have a hand in 47.2 per cent of all new housing construction. Early in the 1960s, the government gave direct assistance to only about 3 to 4 per cent of all housing usually in the form of 30,000 to 40,000 public housing units a year. Dramatic Increase But by the end of 1969, the production of public housing, including the new "turnkey" program where developers put up buildings and sell them to the government, jumped to 60,679 units or 60 per cent more than the output in 1968. Over 50,000 public housing units were built in the first eight months of this year.

N. A. H. B. research department experts predict production will reach 80,000 units for the full year.

This would be a one-third increase from 1969 and more than double the 1968 production. The most dramatic increase in government activity this year will be in two interest subsidy programs of the department of housing and urban development. The programs subsidize all but 1 per cent of the interest rates for homes or apartment buildings for families of low and moderate incomes. This is passed on in the form of lower payments under the 235 program and lower rents under the 236 program. The subsidies were authorized late In 1968.

Last year 8,547 homes were started under the subsidy program. N. A. H. B.

expects production to hit 60,000 units this year. Modest Start The rental program got off to a modest start last year with 8,298 units. One hundred thousand apartment units may be built in 1970 under the government's direct subsidy program. aggregate which will form a distinctive appearance and eliminate the need for maintenance. A model of one section of the exterior wall was built at railroad track level and subjected to a series of water and wind pressure tests of the windows and the five different mixtures of concrete and stone aggregate.

The 35-story, 1,3 million square foot building, is expected to be opened next summer. It will be the focal point of the office complex. Two 20-story office buildings already have been opened. Widdicombe looks at the programs as as "redistribution of the wealth." "You and I pay taxes and this goes out in the form of subsidies to help others." He does not envision long-range problems because "the government is not making inordinate demands on the builders." But John Randolph Jr. warned earlier this month in his last major address as president of the United States Savings and Loan League, that the federal expenditures in the form of subsidies will, as they increase, "have an important role in the growing problem of federal government finances." Randolph said the housing industry needed government help because of inflation and high interest rates.

Inflation Problem "Interest subsidies," he said, "have their place in the American housing market, but it would be regrettable and extremely costly if the growing use of these subsidies is permitted to delay indefinitely a showdown on the issue of runaway building costs." Randolph concedes the problem of inflationary housing costs will not be solved quickly and thus he expects the program to continue to expand and affect an increasing share of the housing market. Randolph joined a chorus of concerned parties who warn that subsidies are a "source of potential discord between those who receive them and those who pay them." Lewis Eaton, new president of the league, is enthusiastic about the new secondary market opportunities such as the Federal Home Loan Mortgage corporation. Without it there isn't enough capital to finance all the housing we need, he said. This was echoed by Sherman Shapiro, economist of the Federal Home Loan Bank of Chicago. When considering the amount of government involvement and the fear about "federalization" of the mortgage market, the "ends" must be considered, he said.

"It tgovernmenll gets money into the market." If you take the time to look up at the third office building going up in the Gateway Center office complex you'll find something unusual in construction techniques. The 35-story office building rising over Union Station passenger concourse at Adams and Canal Streets seems to have an unusually thin steel frame. "It's a new approach to building in Chicago," explained Alan Golboro, vice president of Tishman Realty and Construction company developers and owners. "The newness of this method Is how a private developer can afford to do it economically," Golboro said. Tishman won't know that until all the costs are in.

The center core has the massive steel work everyone is accustomed to, but the frame is made of lightweight steel. This is clad with lightweight reinforced concrete. Tishman used this method to form a building frame that was both light and strong. A heavy building frame which would have forced Tishman officials to use large foundation caissons. They would have had to dig below the hard pan strata below ground into an area where there was a risk of encountering water problems.

Tishman had to order a special machine designed and built to apply the concrete to the exterior steel. Steel concrete casting forms were built into a machine that is able to adhere to strict tolerances and move easily up the side of the building with a minimum of labor. The exterior concrete will be roughened to expose Imbedded stone Large Garage Under Offices An 11 -story garage, which can be topped with a 24-story building, will be started this year at the northwest cor-ncr of Wabash Avenue and Kinzie Street, across from the new 52-story office building of International Business Machines Corporation. Plans for the upper structure will not be set until late next year, but it could be used for apartments, offices, or a hotel, depending on the demands of the market. The 860-car garage is being designed by Shipporeit, Inc.

It will be developed by General Parking Company and Harvey Walken Co. Gordon Prussian of General Parking said the garage will be completely self-parking operation with a sloping floor. Motorists will make five circuits around the exterior to travel to the top of the garage. The exterior of the building will be clad with vertical fins of Cor-Ten steel, which forms a thick coat of rust that prohibits continuous oxidation and eliminates maintenance. The garage is expected to be completed by Fall, 1971.

-r-mm-' r'. L.ii.m ii mi. ii wiiii LWirtfedl These programs, and others like assistance to lenders to increase the volume of mortgage money, has been a welcome relief for builders. Robert Widdicombe executive vice president of the Home Builders Association of Chicagoland, said the programs "bridge the gap between what people can afford and what it cost to put a house together." The programs help a lot of people including those in the middle income levels earning up to $15,000 a year, 'he said. I Light slccl and light concrete combined in new building..