Evening star. [volume] (Washington, D.C.) 1854-1972, 1934-05-14
ROOSEVELT HOME IL
RETIREMENT BILL
Al GOES TO CONGRESS
Continued From First Page.)

I'D ~ - ~ . ~ ~
Continued From First Page)
Of the names throughout the country
are in decadent condition, and that
many new homes are needed to re-
place those not worth repairing. in
the message outlining Nation wide
home modernization and construction
program and urging Congress to con-
slider the necessary legislation.
The President in his message said
that the purpose of the program is
two-fold: First, to return many of
the unemployed to useful and gainful
occupation; second, to produce tan&-
BILE, useful wealth, is form for which
the President stated, there is great
social and economic need.
He emphasized the fact that the
Federal Government must lay the
groundwork for this effort before
Congress adJourns its present session.
Four Major Goals.
The program as outlined to Con-
gress by the President consists of four
major, interrelated divisions: Mod
erniZation, repair and new construc-
ton; mortgage insurance, mortgage
associations and building and loan
insurance. To effect this, the Presi-
dent said, new governmental
agency will be necessary.
His plan as outlined is to have loans
made to individuals by private
agencies which will be insured by a
governmental agency against loss up
70 certain percentage.
The message to Congress follows:
To the Congress:
May I call your attention to some
important suggestions for legislation
which should tend to improve condi-
tons for those who live in houses.
those who repair and construct houses
and those who invest in houses.
Many of our homes are in deca-
dent condition and not fit for human
habitation. They need repairing and
undermining to bring them up to the
standard of the times. Many new
homes are now needed to replace
those not worth repairing.
The protection of the health and
safety Of the people demands that this
renovizing and building be done
speedily. The Federal Government
should take the iniative immediately
to cooperate with private capital and
industry in this real property conser-
walton. We must lay the groundwork
for this effort before Congress adj
journs its present session.
THE p1lrDOSe IF the ,ro1ror, 4.
two-fold: to return many of the un-
employed to useful and gainful occu-
patton; second, to produce tangible,
useful wealth in a form for which
there Is great social and economic
need.
The program consists of four ma jor
tnterrelated divisions:
Il. determination, repair and new
construction.
20. Mortgage insurance.
80. Mortgage associations.
a. Building and loan insurance.
The modernization phase of the
program will furnish national guild
ance and support for locally managed
renovizing campaigns throughout the
country and protection for home own
d6hAloO uAlW al d4lICo COoL al"
vances. For these purposes and to
assure adequate financing at low cost
and on modern terms Of repayment,
new Governmental agency is re-
Quired.
"ModerniZation of commercial and
industrial structures is envisioned, as
well as residential, but the new fea-
lures providing Governmental assist
! ance are confined largely to home
improvements.
Partial Insurance.
Loans to individuals will be made
by private agencies, which will be in
sured by q Governmental agency
against loss up to certain percent
age of their advances. This insur-
ance against loss on the rehabilitation
loans will be met by the Government
and will be confined to advances of
credit that meets standards and con-
ditions designed to protect both the
home owners and the cooperating
agencies.
ITO make funds available for new
home construction and to improve the
mortgage market, the second phase
of the program is long-term mortgage
financing. It provides mutual mort
gage insurance under Government di-
rection to enable private agencies to
make first mortgage loans on newly
constructed houses up to 80 per cent
of the appraised value of the property,
and to make new mortgages on exist
ing homes up to so per cent of the
appraised value of the property. The
loans will usually carry not more than
5 per cent interest and will be
amoratized by periodic payments over
20 years. Similar insurance arrange
ments are provided to help finance
low-cost residential projects Of the
slum-replacement type.
Would Cut Rates.
'The third phase provides for the
incorporation Of mortgage associa-
tons under strict Federal supervision
to increase the amount Of mortgage
funds available in regions where in
terest rates are unduly high because
SUFFICIENT local funds are lacking. The
activities Of these associations will be
limited almost entirely to insured
residential mortgages.
Insurance for share and certincate