Evening star., 1933-11-26
REPAIRS REQUIRED
IN HOME LOAN PLAN
Safeguarding of Securities
and Providing Additional
Work 'Objectives.>

With the objective Of safeguarding
its securities and at the same time pro-
viding additional employment in build
ing fields, the Washington agency of
the Home Owners Loan Corporation
announced yesterday a policy of requir-
ing reconditioning of rundown prop
erty on which mortgage refinancing is
to be undertaken. Cost of the repairs
would be included in the loan advanced
by the Federal agency
Paul FriZZell, manager Of the District
OF Columbia branch. in making public
the plan, said eight qualified contract
selected by the corporation to perform
the work. which will be contracted for
on a low-bid basis in each case.
The contractors in this list" said
Mr.. Frizzell, have been carefully Sc
1ected by us and have met our rigid
requirements regarding responsibility,
character of work, fairness of price and
protection, both to the corporation and
property owner, against mechanics
liens. Because Of this, no bids can be
considered from a contractor not on the
list"
Restriction Of Number.
The number of contractors was nee
esSarily restricted, the H. o. L. C. man.
ager said, = Use of the unusual re-
QulIenentS from the tOrpOntlOnl
The procedure to be followed will in
volve complete examination Of proper
tleS on which distressed home owners
are seeking Federal aid. A repair in
ioyn in,
essential to place the property in aeon a con-
Home Owners Loan Corporation"
Each OF the eight contractors will
receive copies of each specification.
The property owner is instructed to ask
Tor bids from any three of the con-
tractors named. The low bidder in
every case will be acceptec.
When the amount of the low bid Is
received at the corporations Office it
will be added to the amount of the ref
nanclng loan. When the case Is finally
approved the low bidder will be author
!zeo TO proceed with the work. Upon
Its completion the work must be ap-
proved by the corporations repair in
kpector before the contractor is paid.
Charges In the loan will include a fee
OF SO for the inspectors services.
AHStIuCtOn 10 owners.
Frizzell said property owner are being
instructed, In order to avoid the possi-
blllty OF a lien which would prevent
the loan being closed, not to undertake
10 nave done any work of any nature
or have any material delivered. to the
property
BY having these improvements
made" Frizzell asserted. I'VE shall be.
performing a service not only to the
nome owners. but to communities as
whole, by making assets out of liabili-
pllities, and preserving property values
generally
This demonstrates how the CORPORA
tion's activities benefit more than mere
ly the home owner. Employment will
be provided in various building fields
Under this repair program, and we will
at the same time be materially en-
hancing the value of our securities
When we make loan, we also benefit
the District government, by paying off
all back taxes due"
1t was emphasized that only with
such repairs as affect the security will
be undertaken. No interior recondition-
ing will be done. but exterior painting,
roofing and replacement of cutters and
downspouts, ETC., will be included In
some instances plumbing and heating
work may be done. Loans cannot in
clude advc ices for additions to the
property.
The policy was adopted by the local
office in accordance with provisions of
the home owners loan act, which stipu-
lates that sums may be included in
loans Ito pay the taxes and assess
ments on the real estate. to provide for
necessary maintenance and make neces-
sary repairs"