Imperial Valley press., 1934-05-14
QUICK ACTION
On MESSAGE
BYPRES|DENT
Roosevelt Urges Nation Wide
Modernization And Repair OF
Dwellings.
EXPLAINS DOUBLE PURPOSE
Will Provide Employment And
Be Of Assistance To Social
And Economic Recovery.
EXPLAINS DOUBLE PURPOSE

WASHINGTON, May IA. U.P)-
Billions of dollars for home mod
ernization and new residential con-
struction would become available
under legislation introduced in
congress today in response to
message from President Roosevelt
asking action on a housing pro-
gram before adjournment.
Joseph T. Robinson, senate ma
jority leader, estimated that two or
three weeks should be required to
complete legislative action on
measure which was regarded as one
of the most important recovery
projects of the Roosevelt adminis-
tration.
Chairman Duncan U. Fletcher
DemD Florida, of the senate bank
ing committee, sponsored the bill
in the senate.
The Fletcher bill creates home
credit insurance corporation with
capitalization of 100000 900. The
measure also provides for insur-
ance of deposits in building and
loan associations.
WASHINGTON, May IA. U.P)-
President Roosevelt today sent 10
congress message urging a nation
wide home modernization and re-
pair program
The President said the program
would consist of four major inter-
related divisions:
l. Modernization, repair and new
construction.
2. Mortgage insurance.
3. Mortgage associations.
4. Building and loan insurance.
1.-The purpose of the program Is
two-fold,' Mr. Roosevelt said.
First to return many of the un-
employed to useful and gainful oc-
cupation; second to produce tangi-
BILE, useful wealth in forme for
which there is great social and
economic need.''
The President said many Amer
ican homes are 'not fit for human
habitation. Rebuilding and rem
ovizing should be done quickly, he
said, to protect the health and
safety of the people. To obtain
this speed the federal government
must take the initiative and COOP
crate with private capital and in
dustry, Mr.. Roosevelt explained.
He called the program "real-
property conservation -
The President said he enyisioned
modernization of commercial and
industrial structures also but he be-
lieved the government should con-
fine its assistance largely to home
improvements.
Loans to individual home owners,
he explained, would be made by
private agencies which in turn
would be insured by the govern
ment against loss up to certain
percentage of the loans.
Loan Plan Outlined
The other phase of the program,
the making of funds available for
new home construction and the inn
provement of the mortgage market
includes long term mortgage
financing agency. This would give
mutual mortgage insurance to pri-
vate agencies which would make
first mortgage loans on newly con-
structed houses up to 80 per cent
of the appraised value and make
new mortgages on existing homes
up to 60 per cent of the value. The
loans would carry about per cent
interest and would amortize In 20
years.
Mortgage associations would be
incorporated under strict federal
supervision to increase the amount
of funds available i'll localities
where interest rates are unusually
high while insurance for share
holders in building and loan asso-
Citations would be provided. The
latter phase would be similar to the
insurance now provided for bank
depositors. If the program Is adopt
ed by congress, President Roosevelt
said
81 believe that the initiation OF
this broad and sound program viii
do much to alleviate distress and TO
raise perceptibly the standards OF
good living for many of our fam
lilies throughout the land. =