The Washington times., 1934-05-14
MESSAGE ASKS
FUND AID To
!. 'RENOv|z|NG'
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II IIIIuOuIEIIuO
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ard Of the times. Many new
homes now are needed to re-
place those not worth repairing.
FOR HEALTH, SAFETY
"The protection Of the health
and safety Of the people de-
mands that this renOvizing and
building be done speedily. The
Federal Government should take
the initiative Immediately to CO.
operate with private capital and
industry in this real-pr0perty
conservation. We must lay the
groundwork for this effort be-
fore Congress adjOurns its pres
ent session.
"The purpose of the program
is twofOId: First, to return many
Of the unemployed to useful
and gainful occupation; second,
to produce tangible, useful
wealth in q form for which
there is great social and eco
nOmic need.
"The program consists Of
four major, interrelated divi-
SiOnS:
II. M0dernizatiOn, repair,
and new construction.
"2. Mortgage insurance.
"3. Mortgage associations.
~. Building and loan inSur.
ance.
HOME OWNERS AID
"The mOderniZatiOn phase Of
the program will furnish ma
tiOnaI guidance and support for
locally-managed renOvizing cam
paigns throughout the country
and protection for home own
erS against unwarranted cost
advances.
"FOr these purposes and to
assure adequate financing at
low cost and on moderate terms
of repayment, a new govern
mental agency is required.
'MOdernizatiOn of CONNER
cial and industrial structures
is envisiOned, as well as resi-.
dental, but the new features
providing governmental assist
ance are confined largely to
home improvements.
Loans to individuals will be
made by private agencies which
will be insured by q govern
mental agency against loss up
to a certain percentage of their
advances.
FEDERAL BACKING
"ThiS insurance against loss
on the rehabilitation loans will
be met by the Government and
will be confined to advances
Of credit that meet standards
and conditions designed to pro-
tect both the home owners and
the cooperating agencies.
ITO make funds available for
new home construction and to
improve the mortgage market,
the second phase of the pro-
gram is lOng-term mortgage
financing.
1T provides mutual mort.
gage insurance under govern
mental direction to enable pri-
vate agencies to make first
mortgage loans on newly con-
structed houses up to 80 per
cent of the appraised value of
the property, and to make new
mortgages on existing homes
up to 60 per cent Of the ap-
praised value of the property.
The loans will usually carry
not more than per cent in
tereSt and will be amOrtiZed
by periodic payments over 20
years. Similar insurance ar
rangements are provided to
help finance lOw-cOSt reSiden-
tiaI projects Of the Slum-
replacement type.
FEDERAL CURB FIXED
The third phase provides for
the Incorporation of mortgage
associations under strict Federal
supervision to increase the
amount Of mortgage funds
available i'm regions where in.
terest rates are unduly high be-
cause sufficient local funds are
lacking. The activities of these
associations will be limited al
most entirely to insured resi-.
dental mortgages.
Insurance for share and GER
tificate holders in building and
loan associations, similar to the
insurance provided for bank de-
pOSitOrS, is the fourth phase of
the program.
"These institutions are GUS
todianS Of the funds of small
savers, and it is essential they
should be given every reason.
able protection.
BROAD AND SOUND
Insurance of this type is
necessary in order to arrest any
further drain ON these inStitu.
tiOnS and to put them in a pO-
SitiOn to resume their normal
useful functions.