The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-07-20
CITY URGED TO
REAP BENEFITS
OF HOUSING ACT
.$13,000,000 Would Be
Available Here, Hugh J.
Baker Points Out.
BY GEORGE DENNY
Times staff Writer

Initiative, organization and lead
ership are necessary if Indianapolis
is to receive full benefit in oppor-
tunities offered the building trades
and manufacturers by the recently
signed national housing act.
This was the opinion expressed
today by Hugh J. Baker, president
of Hugh j. Baker & Co., and chair
man of the modernization commit
tee of the indianapolis Construction
League, as an intensive moderniza-
ton campaign gained impetus all
over the nation.
we, as we'll as other agencies in
the city, have been preparing to CO.
operate with the government for
MONTHS said Mr.. Baker. Indian
apolis has failed to make full use of
chances opened up under certain
recovery projects in the past and
we hope to avoid repetition of this
experience"
Housing Act Explained
Explanation of the national hous-
ing act and discussion of methods
to push the program here will be
the purpose of a meeting of repre-
sentativeS of the building industry
tomorrow noon in the Architects and
Builders building.
Signing Of the bill, one of Presi-
dent RooSevelt's last official acts
before leaving on his vacation trip,
made available $2O0,00O,000 in fed
era funds as insurance to banks
and building and loans in the home
modernization and repair drive.
This sum will provide insurance
for the one billion dollars which it
is hoped the private agencies will
lend home owners on a long-term
basis. It is estimated that $10,-
100000 should be so liberated in In
dianapolis.
City's Share S13,OOO,OOO
In addition the act proposes to
make available $1,OO0,000,000 for
new construction of residences and
$1,000000,000 for conversion of
short term mortgages on existing
homes to long term mortgages up
to twenty years.
Indianapolis share of these
amounts is estimated at $13,000,000.
There is considerable misunder-
standing of the $200,OO0,O00 loan
insurance feature of the act. The
insurance applies not to the indi-
vidual loans, for which the maxi
mum has been set at $4,000 for any
one dwelling, but to the aggregate
of loans made by any private lend
ing agency
How Plan Works
A bank, for example. which makes
home modernization loans of $4,000
may obtain federal insurance of 20
per cent of $4,000 against which
they can charge off the face amount
of any and all bad loans that may
arise, up to and including the
$4,000.
The lending agencies must be &C
ceptable to the national housing di-
rector and individual loans must be
passed on by federal housing adj
miniStratorS in the various states.
Fred Hoke, former national emer-
gency relief director for Indiana, is
prominently mentioned for the post
of housing administrator.
Favor HOke for Post
Mr. Hoke's appointment has been
recommended by both the Construc-
ton league and the indianapolis
Chamber of Commerce and it is
reported that Governor Paul v. Nc
Mutt also favors his selection.
A persual of a list indianapolis
industries shows that at least sixty
would stand to benefit directly by
increased home construction, re-
pair and modernization, according
to James w. Carr, chamber of Com
merce promotion director.
In addition, the architects, con-
tractors, engineers and craftsmen
are vitally interested in the pro-
gram" said Mr.. Carr, land the ram
if1ations would reach into every
field
Legion Post Plans Annual Picnic
Tndi9nanO most No d American