Evening star., 1934-05-26
FUND WILL
OWNERS TO ENTER
STARCOMPET|T|0N
Specialists Who Will Super
wise Program Called Here
for Conference.
COUNTRY is DIvI9ED
INTO 6 REGIONAL AREAS
Corporation Can Make Loans Only
Up to 80 Per Cent of Appraised
Value.
BY VINCENT TUTCHING.

BY VINCENT TUTCHING.
Home reconditioning funds for dis
tressed home owners came a step
closer to realization today. as the
Home Owners Loan Corporation,
which is preparing to turn $780,
100000 into the channels of modern
ization and repair, called an extraor-
dinary conference in Washington of
specialists who will supervise this
program in the various parts of the
country.
1t Is understood the machinery has
been set up to administer this new
amendment to the home loan act, and
eligible home owners-those whose
mortgages are held by H. o. l.. c. or
are about to be taken over by the
corporation-will be able to make ap-
plication for reconditioning loans
next week.
The beginning of operation of this
method of enabling home owners to
modernize will mean a decided jump
in this field of activity in the Capital,
where close to 1000 homes have
been refinanced through the local
Home Owners Loan Corporation
Office.
Will Enable Entry in Contest.
Incidentally, it will automatically
enable hundreds of property owners
to enter their improvement projects in
The Stars 100 Better Homes Con-
test, now being conducted in CO.
operation with organized citizens as
sociations, throughout the metropol-
tan area of the Capital. tr
The H. o. L. C. points out that
necessary repairs and desirable mod
ernization of homes might be en-
braced in projects it finances.
For the purpose of carrying out this
divided into six regional areas, in each
of which two regional supervisors will
serve in cooperation with local State
reconditioning supervisors and State
managers in conducting recondition-
ing departments in each corporation
Office.
Specialists Called to Capital.
"These IL specialists, the home
office of the corporation announced,
"have been called to Washington for
several days of intensive instruction
In the general responsibilities and
technical functions which they will
be called upon to carry out. Particu-
lar emphasis is given to the fact that
the amount of money available for
such reconditioning loans to home
owners Is extremely limited. Loans
must be restricted to distressed home
owners who are in definite need OF
such improvements to their proper
ties. and whose credit standing en-
titles them to such advances on the
basis that they will be able to repay
them through long-term amortized
loans, made under the home owners
loan act as amended.
"The men chosen to direct and ad-
minister the program are thoroughly
familiar with building design and
economical use of the best available
materials. They are likewise famil-
lar with recent trends in moderni-
cation and rehabilitation of homes
particularly those owned by people
of limited means who can least af-
ford extravagant expenditure Tor
useless and inferior alterations to
their properties"
Loans Up to 80 Per Cent.
Under the H. o. L. c. plan the
corporation can make loans only up
to 80 per cent of the appraised value
Of the property. If the mortgage
held by the corporation is for the
full extent of this percentage the
home owner would not be entitled to
further advances. If, however, he
has been loaned. for example, only
60 per cent of the appraised value
for mortgage purposes, he would be
entitled to an additional 20 per cent
for reconditioning.
The corporation reserves the right
to decline further loans where it feels
the borrower is financially unable tc
undertake additional obligations.
Indications on Capitol Hill this week
are that the Governments other plan
for stimulating home improvements
by guaranteeing loans made by pri-
vate lending agencies-will be Severa,
weeks in the course of being rounded
into final shape, with the possibility
that it may not be approved at this
session of Congress.
Measure May Be Altered.
Opposition to the bill, drawn Il
the Presidents specifications by the
National Emergency Council, has beer
directed at portions other than the
modernization feature, which. 1t Il
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