Evening star., 1934-08-11
HANFOR SESSION
IS MADE BY GROUP
Meeting win Be Held in
Connection With Star
Homes Contest.
fcontlntlsd Prom First passl J

fcontlnued Prom First Pagsl
goods industries through resultant
spending.
Lending institutions learned from
The regulations that TO obtain the
insurance they merely apply for an
insurance contract issued by the
housing administrator and good until
December 81. 1895. The institutions
themselves determine the eligibility
for insurance Of every note taken BY
them as security for modernization
loans Notes are insured auto
natically when accepted by the
approved institutions
the regulations--an even score of
them-cover only national and IN
dtlStrial banks. finance companies,
and State banks and trust companies.
Additional rules will be drafted for
savings ranks. insurance firms ana
building and loan associations.
The housing Administration em-
phasized In q bulletin that carried
the rules TO $4,000 lending agencies
that II sought an adequate ex-
pcnditure 10 take care Of the accu-
muiated demand for repairs, remodel
Ing and undermining.
Unwise Spending Not Aided.
"It is not the purpose Of the
national housing act" the adminis-
tration added. 10 encourage unwise
expenditures OF money by property
owners in improving property actu-
ally beyond the possibility Of effective
rehabilitation"
Instead, housing ofhcials hope to
tap that construction which has
been postponed because Of the In
ability OF property owners TO obtain
credit for repairs and Improvements.
The housing act is designed to make
it safe for financial institutions to
advance the credit without security.
Any number Of separate notes may
be made for improving single piece
of property, provided the total OF the
obligations does not pass $4,000. And
n single property owner will not be
permitted 10 obtain loans OF maxi
mum Of $4,000 each for more than
five separate pieces Of property
without special approval OF the
Housing Administration.
Notes cannot run more than three
years and must be paid up in
monthly installments. Financial in
stitutions will determine the period
notes may run and may charge extra
should a borrower fail to meet his
payments,
The administration urged that
banks frown on advances that would
raise the value Of a property be-
yond that Of neighboring property
OF a similar type.
"a 5000 house in $4,000
neighborhood," it said, generally
viii be an unwise investment"
Maximum Is $4,000.
The property owner, taking along
q contractors or builders cost esti-
mate OF his proposed improvement,
goes to the bank with a request for
a loan. He need not be a depositor,
but he must fill out a credit state
ment.
II the bank decides his credit po-
sition is sound and that he is able
TO pay back, 1t accepts his note for
the money he needs, provided 1t Is
not more than $4,000. The regula-
tions also set minimum OF 500.
In addition TO insuring the note,
the Housing Administration agrees
to advance cash TO any insured in
stitution up to the full face value of
all insured notes in good standing.
This assures the lending agencies
liquidity in case of emergency.
Prizes in The Stars contest are
divided into two claSses-for homes
valued at $4,000 and under. and
for homes valued at over this figure.
In each class first prize Of $3.50, a
second OF 500 and a third of $50
will be given, as well as four honor
able mention awards of S25 each
In addition, the Washington Board
OF Trade has offered a 500 prize to
be awarded for outstanding land
scaping development. and another
500 win be given the citizens asso-
citation whose members show the
greatest interest in the contest
measured by percentages of members
who enter.
Entry blanks and fun information
concerning the contest may be OBJ
tanned through note or telephone
call to the Better Homes Contest
Editor of The Star