According to Mrs. Wood's report, before 1915, 700,000 houses had been built or acquired in the United States through the aid of building and loan associations.[18] She thinks that the moderately paid wage earner, but not the unskilled worker, was benefited. This conclusion is disputed by officers of four building and loan associations in Chicago interviewed in connection with this study. That the associations reach the foreign-speaking groups seems to be evident from the names in the Annual Report of the auditor of the state of Illinois for 1918. The Bohemians had the largest number of societies, and the Poles were second. The Italians alone of the large national groups were unrepresented.
Mrs. Wood's plan also calls for a national housing commission in the Department of Labor, to be created under congressional act, with organization and powers analogous to those exercised by the Federal Board for Vocational Education. For the use of this commission it is proposed that a fund be created by the issue of bonds, from which loans could be made to certain designated agencies for the clearance of congested areas and the increase of housing facilities.
The Federal legislation is to be supplemented according to Mrs. Wood's plan by state legislation, including:
1. A restrictive housing law, a constructive housing law, and a Town Planning Act. This plan contemplates a state commission on housing and town planning through which the Federal aid for the state would be made available; to which should be intrusted the responsibility of investigating and approving or disapproving housing schemes proposed by local agencies and associations.
2. A state fund similar to the Federal fund is proposed, and definite suggestions for its use are worked out. For the local authorities, local housing and town-planning boards, probably with the county as the basis of organization, are proposed.
This housing fund, composed of the Federal fund, the state fund, and in some cases local funds, is to be used to make loans to municipalities, housing organizations that are not organized for profit, limited dividend companies, co-operative associations, or even employers. The plan contemplates that the lowest paid wage earners, among whom are numbered a large per cent of the foreign born, should continue to rent; but the landlord should not be a private individual seeking to make profit from providing the workers with shelter.
The plan also takes note of the plan for co-partnership ownership adopted by the United States Housing Corporation. The main features of this arrangement are:
1. Ownership vested in a local board of trustees bound to operate the property in the interest of the tenants and until the property is fully amortized in the interest of the government.
2. Formation of a tenants' association to which all residents of three months are eligible on payment of small yearly dues. This association to elect a tenants' council to act as directors of the association, to confer with the board of trustees, and to carry out such duties as trustees direct.
3. Any tenant may become a co-partner by applying for bonds to the amount of 25 per cent of the value of his dwelling, and accompanying his application with a cash subscription of one half per cent of this.