Evening star., 1934-08-11
PLAN FOR SESSION
IS LAID BY YADEN,
MURPHY AND ORR
Meeting Win BE Held in
Connection With Star
Homes Contest.
BANKS PARTICIPATION
REGULATIONS ISSUED
Rules Will Be Discussed by
District Bankers Group at
4:30 Pm. Monday.
BY G. T. KELLOGG.


Presidents Of citizens associations
in the District Of Columbia and
suburban communities and their
chairmen in charge OF home i'm
provements win hear Federal Housing
Administration officials discuss posi-
bilities Of the Federal insurance their
group offers to aid home repairs al
a meeting August % in the Board oi
Trade rooms, on the second floor OF
The Star Building.
The meeting was arranged yesterday
at luncheon attended by James @
Yaden. president of the Federation of
Citizens Associations Of the District;
Arthur Orr, president Of the Airing
ton County Civic Federation and
chairman Of the Better Homes Com
naittee for that county, and z. J.
Murphy, chairman of the Better
Homes Committee Of Montgomery
County, Md.
One or more officials of the Hous-
ing Administration will tell the group
how the new agency functions, and how
home owners In Washington and near
by suburban districts may arrange for
loans for improvement and repairs.
A speaker from the District Bankers
Association also will speak.
The meeting is to be held In con-
nection with The Stars 81 900 Better
Homes Contest, now in full swing in
the metropolitan area, in an effort
to have citizens enter the home i'm
provements and modernizations they
proposed 10 make in the competition
for the valuable cash prizes being Of
fered by this newspaper.
The Housing Administration set
up, coming as 1t does, ties in per-
fectly with The Stars contest, and
enables home owners who would
have liked to enter the competition.
but who would have been financially
unable without the Government
guaranteed loans, to do so. 1t is for
this reason that the meeting is to
be held, so that the heads of the
citizens groups can carry home to
their associates the information
concerning the working of the housing
agency.
Rules and regulations were issued
yesterday under which banks and
lending institutions may participate
IN the campaign to modernize and
repair millions Of homes throughout
the country.
Rules TO Be Discussed.
The application Of these rules and
regulations to Washington banks and
lending institutions will be discussed
at q meeting of the District Bankers
Association at 4:3o pm. Monday in
the board room Of the American
Security and Trust Co. Francis G..
Addison. ir- president Of the Security
Savings and Commercial Bank and
chairman of the associations Housing
Committee, will discuss the rules as
they apply to District financial in
stitutions, and it is expected that
the bankers will come away from
the meeting with an understanding
of the set-up that will enable them
to begin making loans to home own
ers Immediately
There still will be more than four
weeks for the home owners to get
their repairs made and enter the
competition for the cash awards after
the loans, guaranteed by the Federal
Government, begin.
The Government will not advance
the money. II viii come from lending
institutions, which will charge no
more than IS per 500 in interest
or fees. This approximates the
coverage rate for similar loans.
All types Of residential and COM
mercial structures fall within the
scope Of the program.
Security Unnecessary.
A borrower has only to establish
the soundness Of his credit and show
that his annual income is five times
the amount Of the annual payments
on his loans to obtain funds from a
financial institution cooperating
in the drive. He need not put up
security unless the lender is required
by State law TO obtain it.
To the lender the inducement to
come into the mo6ernization effort
Is Government insurance against
losses up to 20 per cent of their total
moderniEation loans.
The Housing Administration hopes
TO loose thereby fiow of credit that
virtually disappeared during the
economic recession and to provide
O powerful stimulus 10 the durable
(Continued on page 4 Column ~