The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-12-31
PETERS CITES
BENEFIT FROM
\ HOUSINC LOANS
E Capital Put to Work
Were Due to Federal
Activity.
BY r. EARL PETERS
State Director for Indiana Federal
Housing Administration.

Within the short space OF -four
months and four days, from Aug. IL
to Dec. 10, Indiana has benefited
by the Federal Housing program to
the extent of S428,937 in insured
loans for modernization and repair
Of real property in the state, and at
least four times that much in non
insured loans and cash payments
or an estimated total of S2,144,685.
This means, roughly, that capital
which was lying idle in banks and
other financial institutions, and
which would have remained idle,
has under the stimulus of the houS-
ing program been flowing into in
dustry and trade in Indiana at the
average rate of about S2500OO a
month.
The number of insured loans re-
ported to the Housing Administra-
ton in washington in that period,
which made up the total of s428, 937,
was 1916. In other words, 1916
property owners in Indiana, who
would not otherwise have been able
to have needed improvements made
to their homes or business prop
critics. have been able to finance the
cost of home betterment or of pre-
venting deterioration of property.
Average at SS25.94
The average insured loan was for
s325.94. We have no means of
knowing how many properties are
represented in the estimated total
of non-insured loans and cash pay
ments, but, if the proportion runs
about the same as in the insured
loans, more than $500 properties in
Indiana have been improved, homes
made more livable, business places
more attractive and convenient,
farms put in better condition, as a
result of this program.
In this same period, from the
formal beginning of the Housing
Administration on Aug. Is to Dec.
19. there were 66.818 insured loans
made throughout the entire United
States, to a total Of S28,0O0,735. On
the same basis of four times as
much work created, in nOn-insured
loans and cash payments. which
careful estimate has shown to be the
general average, the total amount
Of new business generated is more
than $40, 900 900.
Building Workers Busy
The effect of this program on I'M
employment is difficult to gauge &C
curately, but we have reports from
our housing chairmen in counties
and cities and towns all over Indi-
ana to the effect that good workers
in the building trades are busy for
the first time in three or four years.
In order still further to increase
the availability of this service to
the people of the Nation, the Hous-
ing administration has just an
nOunced a revision of some of its
regulations in regard to insurance OF
loans for modernizatiOn.
For instance, the original regula-
tons required that federal insur-
ance on modernization credit loans
would be granted only in cases of
improvement or repair on improved
real property. The new regulation
leaves out the word improved" so
that loans may now be made for
improvement to vacant property, so
long as the amount to be expended
does not exceed $4,000 This makes
possible insurance on loans for new
small houses, for barns on farms,
for summer cabins, garages on va
cant lots and other small new con-
Struction which heretofore were not
eligible.
Other Changes Cited