Evening star., 1934-07-14
PROPERTY OWNERS
W|LLF|NDBANKERS
PREPARED TO HELP
Special Committee Formed
on Modernization
Advances.
MORTGAGES ARE NOT
REQUIRED IN DISTRICT
Decided Boost in Home Renova-
tion Here Expected in Few
Months.
BY VINCENT TUTCHING.


Property owners in the Washington
metropolitan area who apply 10 local
financial houses for modernization
loans under the national housing act
will find them In a receptive mood.
willing and anxious TO cooperate.
This Is the picture in banking
circles here today on the eve OF the
releasing by the Federal Housing Ad-
ministration of its Nation wide cam
paign for property renovation and i'm
provement, major part OF It's Ri-
Rantic program for revivifying the
capital goods and construction indus
tries.
Acting through the District Bank
ers Association, Washington financial
institutions are ready the moment
the administration says the word, to
proceed with the lending of funds for
modernization OF rundown buildings,
reconditioning unpainted and depre-
ciating houses and saving from obso-
lescence other real estate improve
ments, regardless OF what they may
be.
Addison Is Chairman.
Under the Craftsmanship Of Francis
@. Addison, r., president OF the Sc
curity Savings and Commercial Bank
the bankers group has set up spe-
cial committee on modernization
loans. which is following closely the
development Of the program in the
Federal Housing Administration and
stands ready TO promote the move
ment here the moment regulations are
promulgated for administering this
portion Of the act.
Spokesman for the banks declare
they have been anxious right along
TO encourage this type OF borrowing.
and point in this connection TO the
half-million dollar pool they created
here a year ago for renovizing loans
up to $500 each.
There is no District law which will
require the writing OF mortgage to
secure modernization loans of this
kind, and local financiers see no OBJ
stacles now In the way of straight
consumer credit program. with
character standing. employment and
credit status the only basis for max
Ing loans.
Boost in Work Seen.
The inducement offered to home
owners by the attitude of banks here,
combined with the attractive oppor-
tunities for home owners to win cash
prizes in The Stars 81 900 Better
Homes contest. are expected 10 see a
decided boost in property renovation
within the next couple of months,
Meanwhile, the United States
Building and Loan League. taking
cogniZance Of the heavy stress now
being laid ON home modernization, is
preparing to make some recommen-
cations on modernizing homes shown
by the real property inventory TO be
In need of attention. This survey
revealed that one out of every seven
houses are between 80 and 40 years
old, and 1t is TO this group that the
league will turn attention. Its Com
rnittee on Home Building and Home
Owning now is carrying on research
for an extensive report on the SUBJ
4 iect.
As a preliminary to that study 1t
released today to building and loan
associations a bulletin showing two
examples of what is meant in con-
crete terms by 'modernization.' 1t
points out that thousands of similar
projects can be financed by building
and loan associations from the funds
now available for lending
3S-Year-Ol Home an Example.
Case No. /. as reported by the COM
naittee, is frame house built SO
years ago in one of the metropolitan
sections of the country. and appraised
at present price levels at $40 900. The
owner got an advance of $500 from
his local building and loan asSocia-
ton. repayable in monthly INSTALL
ments OF s3S and not only put
numerous building tradeSmen to work
with his project but brought his home
distinctly up to date.
The house had a splendid down.
stairs arrangement. but the upstairs
was more or less of a loss as far as
living quarters were concerned, hav-
ing remained for nearly 40 year;
practically in the attic state" says
the report. With the moderniza-
ton loan the owner made three bee
rooms out Of the second fioor, one
15xlS feet another l5xlS feet anc
still another l5xS2 feet, which car
also be used as living room. Sew
erSl closets we're added, a new stair
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