Evening star., 1934-08-25
FEDERAL PROGRAM.
EXPECTED TO SPUR.
CONTEST INTEREST.
Enables Owners to Secure
Funds to Compete In
Better Homes Drive.
THE STARS COMPETITION
CLOSES IN THREE WEEKS
Final Entry Blanks Have Been
Mailed and Must Be Returned
by September Is.

Despite the fact that the Federal
Housing Administration has not yet
opened the intensive community pub
lieity campaign which will put its
home modernization program before
the eyes of every home owner in the
country, Washington banks have re-
ceived enough applications for home
improvement loans to express graft
fication."
Francis G. Addison, jr., liaison Of
ficer between the District Bankers
Association and the F. H. A., said
recently he expected no flood" Of
applications for the loans guaranteed
by the Federal Government.
The plan, he said, does not open up
any vast credit pool for home owners
or home buyers who are unable to
meet obligations already incurred. 1t
Is intended, as he understands it, he
explained, to induce those home own
ers who are able to repay the loan
10 borrow on the "installment plan
and thus aid in relieving the unem-
ployment situation, and at the same
time improve their property, their
neighborhood and city.
Contest Soon to Close.
Meanwhile The Stars 81 900 Better
Homes contest, which is so closely tied
In with the Government renovize pro-
gram, will be brought to a close three
weeks from today.
Thousands Of application blanks
have been sent out; hundreds of tele-
phone calls from interested home
owners have come in TO the contest
on the competition.
Final entry forms have gone out to
many, and In order to be eligible for
the prizes they must be returned be-
fore midnight September Is.
The Star expects that many home
owners who otherwise would have been
unable to participate In the contest
have been enabled to do so by the
organization of the Federal Housing
Administration and its guarantee Of
home improvement loans.
Study Applications.
washington bankers are scrutinizing
very carefully each application which
comes in for loan under the F. H A.
insurance. For instance, if man
with an income of $4,000 annually,
owning a home valued at $4,000 ap-
plies for a $1,000 loan, he probably
will get it unless his other payments
on the home are too great.
II his equity, of course, is but $4,000
In that $4,000 house, and he is paying
$50 monthly on the trusts, it is not
logical to assume that the added
burden of the F. H A. loan, which.
even If spread out. over three years
would cost him approximately $50 a
month, could be met without hardship.
These are the things that Washing
ton bankers are taking into consider
alton in the granting of the loans.
OF course, If potential borrowers
statement of credit makes a banker
place him on "the border line" the
weight of the Governments insurance
of the loans will be in favor of the
granting Of the proposed loan, it Is
pointed out.
Chairman to Be Named.
While the r. H. A. is daily organiz-
ing its publicity service to educate
home owners to the possibility offered
under its guaranteed loans, the coma
munity campaigns are expected to
bring an intensified campaign foI
modernization.
In the District chairman will be
appointed soon-it was said last night
that he might be named today-to
have charge of co-ordinating efforts
of various building concerns, lending