Funds advanced by U. S. Housing Authority to local authorities and borrowings by local authorities from other sources for U. S. Housing Authority-aided projects, as of Dec. 31, 1941-Continued

Funds advanced by U. S. Housing Authority to local authorities and borrowings by local authorities from other sources for U. S. Housing Authority-aided projects, as of Dec. 31, 1941-Continued

Funds advanced by U. S. Housing Authority to local authorities and borrowings by local authorities from other sources for U. S. Housing Authority-aided projects, as of Dec. 31, 1941-Continued

Mr. WIGGLESWORTH. I want to ask you about the table appearing on page 568 of the hearings of last year entitled "Federal Works Agency, United States Housing Authority, Recapitulation of Completed Land Acquisition for the Period July 1, 1939, to December 1, 1940." In that table I note in one column you give the assessed valuation for tax purposes; in another column, you give the amount paid or to be paid, based upon options or condemnation awards by courts. The amount in the latter column time and time again is very much in excess of that in the former column, including land located in the larger cities of this country. My experience has been that just the reverse is true, that the assessed valuations, particularly in the larger cities, are very much in excess of the market valuations.

Mr. KEYSERLING. I think that is a reasonable question. What we would be very glad to do is to give you an analysis of any of the specific instances you want us to analyze. Of course, the tax and assessment systems in various localities throughout the country form such a crazy quilt pattern that unless you go to one particular place you can never tell what the real relationship is between value and assessment. In some places, they use a 100 percent assessment and base the tax rate on part of that; then, in other places, they use an 80 percent or 60 percent assessment; but, specifically, we will be glad to take any of these cases you refer to and analyze them for you.

Mr. WIGGLESWORTH. Give us some sort of generalization? For instance, on the first page you have New Bedford, New Haven, Hartford, Bridgeport, Providence, Pawtucket, Newport, Camden, Trenton, Elizabeth, Newark, Atlantic City, Buffalo, Pittsburgh, Philadelphia, Harrisburg, Baltimore, and so on. In all of those instances the observation I have made holds true to a marked extent. Mr. KEYSERLING. We will be glad to do that. We will analyze those specific cases for you.

Recapitulation of completed land acquisition for the period to Dec. 31, 1941

CONN-3-4.

141.40

169,978.00
73, 524.00

$398, 855.00
37,858.00
356, 766.00
220, 688.00
130, 704.00

$443, 850.00
50, 096.00
378, 525.00
227, 150.00
127,500.00

Amount paid
or to be paid,
based on
options or con-
demnation
awards by
courts

$437, 140.00

47,000.00
348,500.00
218, 400.00
121,500.00

1 It is a matter of common knowledge in most cities that the assessed valuation of property for tax purposes does not actually reflect the amount paid for properties bought or sold
in the open market or the amount fixed in condemnation proceedings in the courts or the actual value of property. In the tax laws themselves, there are wide variations in the pro-
and standards differ materially from city to city and even between assessment districts within the same city.
visions as to the ratios of assessed valuation to the actual valuations, and there are even wider variations as a result of local practices and standards. These assessment practices

Because the assessed valuation of property for tax purposes is not a reliable criterion for determining the actual value of property or the price to be paid for it, we have included
in the above tabulation the appraised values as reported by local real estate appraisers who are familiar with the value of property in the particular areas. We have also included
determination as to the value of property.
the valuations by U. S. Housing Administration land appraisers which are based upon a careful study of property values in the community and represent their expert and disinterested

The recapitulation on this page presents a complete summary picture of the relationship between the amount paid or to be paid (based on options or condemnation awards by
courts) for properties and the valuations of such properties by local real estate appraisers and by U. S. Housing Administration's land appraisers. The amount paid or to be paid
for such properties purchased to Dec. 31, 1941 is $3,873,275.77 less than the valuation by U. S. Housing Administration's land appraisers and $2,557,467.51 less than the valuation by
local real estate appraisers. U. S. Housing Administration appraisals on the average are slightly higher than local appraisals because the local real estate appraisers, employed by
local authorities, often evaluate properties to be acquired solely on a normal cash market value of the individual parcels as reflected by their knowledge of sales involving comparable
individual properties in the vicinity of the area to be purchased. On the other hand, U. S. Housing Administration land appraisers in their valuation also take into consideration
whose property must be acquired by condemnation.
the additional value and cost involved in assembling large tracts of land involving many individual parcels many of which are occupied by owners who are unwilling to sell and
Remarks.-Typical cases in which land costs exceeded local appraisals.

Bridgeport, Conn.-1-2.-Local appraised values of this site! are approximately 10 percent below the cost. Ordinarily when purchasing properties from a large number of owners
it is found that many are owner-occupied and they are unwilling to sell at any price. In these cases it is often necessary to pay somewhat in excess of actual market values in order
10 percent. The appraisers of this site did not provide for assemblage and it is for that reason that local appraisals are somewhat lower than costs.
to expedite the acquisition of the site and avoid condemnation. Most appraisers provide for this contingency by adding a certain percentage to their base appraisal, generally about

New Haven, Conn.-4-1.-In explanation of the excess of cost over the local appraisal, it is the opinion of the regional land adviser that the local appraised value of this site was
value which is, in almost all cities, below actual values.
extremely low and it was impossible to purchase the site at anywhere near that figure. This is further borne out by the fact that the local appraisal is decidedly below the assessed

A representative of the U. S. Housing Administration Land Division concurs in the opinion of the regional land adviser.

were set by the court.
Newark, N. J.-2-6.-In this case local appraised values are about 35 percent under the cost of the site. This is explained by the fact that this entire site was condemned and values

the appraised value by 29 percent which would account for the excess cost over the local appraisal. Atlantic City, N. J.-14-1.-Seventy-five percent of this site was optioned at the appraised value and the remaining 25 percent condemned. Awards in condemnation exceeded

appraisal by approximately 33 percent which accounts for the excess cost over local appraised values, Newport News, Va.-3-1.-Seventy percent of this site was optioned at the appraised value, the remaining 30 percent of the site was condemned. Court awards exceeded the

REGION II. MIDDLE ATLANTIC REGION