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"I'�bie� 5. VALL3� OF k�R(JF'ERTY � NEW CCJ�iSTR�J�TIQI'�I 1959
<br />V'alr�c•
<br />�,..�a� th�►r� '`�, 50
<br />tJwn� r -Oc c upied
<br />�fi�nfar.rtl �in�le
<br />I2wc'llin � Unit�
<br />� ��
<br />P�r �ent
<br />?,500-9��OQ --- -_
<br />10, 0�0-1 Z, �00 t�, 565 7. 2
<br />12, 5�0� 1�, 9U0 23, 173 ZS�. 3
<br />15, t�00-17, �00 2�?, 034 �9. 6
<br />17, 50�0•1�}�'9U� 13, 9Q3 1�. b
<br />20, 000-Z�, �?00 13, 47B 14. 7
<br />Z5, 04p vr morc 7, �1� �. 3
<br />�otal
<br />��1, 556
<br />10 �D .
<br />15 Per C:ent
<br />of Midrange
<br />Vai�a��'�
<br />$1,680
<br />2� 055
<br />2, 430
<br />2, �05
<br />3, 36?
<br />SOURC�; United St��►t�s Cer��u$ c�f Hou�in , 196Q, Minnea�olis-
<br />a�nt au , inn. r��ar ,. ovcrnmer�t�r�nt�ng
<br />ice, 9 , p. .
<br />''�C�mpa�°� th�sc "rule of thumb" lot development costs wi.th thoge
<br />calculated for table ir� Ap�er�dix.
<br />Financ�t� -Duil�der-Lender Relationshi .�f particular importance in
<br />he ping to c�xp air� t c type a �v�e oprnent v�hich 1�as Qcc�t�rred, is the
<br />r�lati�nship of the builder and l�nder. '�'h�y are ea�h in th� po�it�on of
<br />bcing a buycr in �ne instance �nci a seiler in the oth�t. Usually, the
<br />lendcrsP stat�dards df housing constructi�an, design, and �ubdivisian
<br />tiesign, as well �e thc�ir �ba�ic principi+es conc�:rnizzg land use relation�
<br />ships an�i R�i�hborhood ci�v�lopment become the buiLders. The lender
<br />may impo�c penalties or c�r��� reject a builder's proposal becau�e it
<br />do�s tiot c trinc ide with the 3c�nde r's views . Thus , it is inevitable that
<br />the l�ndc�r"� standards �sually predail. Conversely, the buil�er �iirectly
<br />influences thc Dender b�rause he obtains construction lc�ans and in-
<br />dir�ctly becausc he is producing the product which the lender will Y�eip
<br />iinancG to the consumer. Con�ec�uently, there are certain limitations
<br />as to haw stringent the l�nder can make his requirements. The lend�ing
<br />field has been, and currently is , hiphly competitive in b�th attracting
<br />savings anci theri in placing funds into sound investments. In the case
<br />c�� savings ansi loan associ�ations , i-esiden' ial mortgages are their
<br />�rimary investment outlet and, consequently, t�lere is great presstire
<br />to put their funds into produc�ive u.�e. A� a�e.sult, the lender r�a}r find
<br />hirxz�elf without c�ie»tele if his requirem�nt� on the builder or the con-
<br />�umez- are sub��t�ntially more st,ringent than most of hYs competitors.
<br />�he im licat�.ons 6f this situation are that if a Iender desires a hi her
<br />�uality o cvelopment and demands that the_builders provi e it, he may
<br />well be jeQpardizing his �inancial �ositron in tMe lending field< This
<br />cc�rMpetitive s ituat ion � aus es adve rs e c ons� equenc e s in ihe patte rn of
<br />de�e lopment .�'� r example , if a s aving s and loan as s oc iation ac�opt�ci a
<br />�0
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