Evening star., 1934-08-02
HOME RENOV|z|NG
STARTS AUGUST IS
$4,000 Banks to Receive
Rules for Making Insured
Loans to Owners.
By the Associated Press.

BY the Associated Press.
August is is the date set by the
Federal Housing Administration for
firing the opening gun in its Nation
wide home renovation and property
improvement campaign, James A.
Moffett, housing administrator, an
nounced yesterday.
Rules and regulations, under which
the Government win insure 20 per
cent of all losses incurred by banks
making moderization and repair loans,
will be mailed to $4,000 financial in
stitutions within q few days. AS soon
as they ere equipped with the rules
banks may begin lending
Moffett estimated 10000, 900 homes
were in need of some kind of repair
and a large number of applications
were on file with banks. The limit of
loan to an individual upon which a
bank may receive insurance from the
Government is $4,000. The average
loan is expected TO be around $500.
Job Pleas Delay Start.
A deluge Of applications for jobs in
the Housing Administration, Moffett
said, had delayed the start of the pro-
gram.
The administration expects that at
the peak Of the campaign the total
number Of employees under him will
be 500, but in one day he received
5000 applications for jobs, 2,500 of
them coming in two hours.
The State organizations of the
Federal Emergency Council, set up
months ago TO further the Roosevelt
recovery drive, will be temporarily lent
to Moffett to direct the housing cam
paign in local communities.
No permanent State housing organ
izations will be created until Moffett
and his aides are ready to start the
second phase of the program. This
involves loans through Government
mortgage institutions for new home
construction and the refinancing of
existing mortgages. In this opera
ton the Government will guarantee
loans up to so per cent of the ap-
praised value of the homes.
U. S. Ballyhoo Banned.
Moffett said again yesterday there
would be no Federal "ballyhoo" in
connection with the home modern
ization and repair campaign. His or
ganization will not finance local
newspaper advertising to influence
home owners to undertake repairs,
but every encouragement will be given
local groups, such as chambers of
commerce and contractors and build
ing supply dealers, to do so.
Much depends upon the willingness
of banks to cooperate in lending,
Moffett said, adding he was convinced
/ the majority of financial institutions
were prepared to advance needed cap
ital. If they are not. he said. he be-
heved pressure" would be applied To-
cally by home owners and contractors
| to open the credit valves.
| In making the loans up to 81 900
banks are not generally expected to
require a mortgage, rather making
the loans on personal security. Moffett
! said, however, that If the banks in
SiSt upon a mortgage his organization
would permit it. Building and loan
associations are required by law &c
/ take a mortgage.
Prefers Personal Loans.
Il have found recently" he said
that personal loans are better than
those secured by collateral This is q
new. unexplored field we are enter.
ing and viii serve to chart the way
in our future efforts.
''of course. If the banks viii no'
lend there Is nothing We can do about
it. Home owners cannot get direct
loans from us. The primary aim o1
this campaign is TO get private capita
to work
IF the banks won't lend, perhaps
some local group, such as building
supply dealers will They have II
some instances
We are now checking the genera