Evening star., 1934-05-16
AVOID NEW LIENS
IN HOUSING PLAN
Home Owners Can Pay for
Reconditioning Out of
Income.
BY VINCENT TUTCHING.

L
by Congress today, would not be faced
with another mortgage or lien against
his home.
Instead. he would pay for the work
out of his income of the next one to
| five years, under the consumer credit
| plan, which is another name for in
Stallment buying.
A salient feature Of the ambitious
housing program drawn to President
RooSevelt's specifications by the Ma
| tional Emergency Council. the utili-
zation of consumer credit for i'm
| provements to real estate constitutes
new departure in the field Of home
financing. 1t is limited, however, to
the first point of the Presidents
characterization.
Council Issues Statement.
With respect to home improve
ment, the National Emergency Coun-
Gil points out in current state
ment:
After five years Of neglect Of the
! ordinary maintenance Of our residen-
| tial, commercial and industrial prop
critics, a widespread potential de-
mand now exists for construction In
the field of repair, renovation and
modernization. BY providing definite
| incentives in the way of reasonable
costs and advantageous credit terms,
we can stimulate renewal OF activity
and employment in the kind OF con-
| struction, both urban and rural, in
which substantial results can be most
| quickly obtained.
"A modernization campaign and
plan OF home improvement credit
have been proposed as means of in
ducing the prompt undertaking of
| this work.
THE modernization project would
embrace commercial and industrial
property as well as residential prop
erty. The special credits that have
been proposed. however, would be
| limited to a maximum of $4,000 each,
I and hence would be availed for the
most part by home owners"
Four Methods Used.
The task Of stimulating recondi-
| tioning of homes throughout the coun-
| try is looked upon by the admins
tration as just as important as the
other features of its program. The
problem is attacked by four different
methods, each calculated to bring
support to the construction industry
and the mortgage-lending business at
| the points where strength Is most
urgently needed.
The four methods of attack are
essential parts of an interrelated
whole" the N. E. c. points out, 1.-The
force Of which will break the vicious
circle In which the building industry
| finds itself, by encouraging in areas
where new construction is economical
ly justified and where an economic
demand Is present, a resumption OF
| building activity. but under new and
sound financial practices"
In selecting the consumer credit
policy as the basis for loans for
modernization, the Government took
| cognizance of the relative success of
this plan as compared with home
mortgages during the depression years
Instalment buying. it was found, has
shown a remarkably low loss ratio;
| it Is mortgages that have not paid out
The legislation required in connec-
ton with the housing program, in
troduced IN Congress yesterday. pro-
vides for the creation Of a Home
Credit Insurance Corporation and al
locates to it up to $500, 100000 as
capital stock. The corporation is en-
powered to insure all types Of approved
financial institutions against losses re-
Sulting from extension of credit for
repair, renovation and moderniZation
purposes. 1t would provide facilities
under which such insured paper may
be rediscounted
Scores Indorse Contest.
Development of this program is seen
as having a decided effect on home
reconditioning work in the Capital.
which already is active in this direc-
ton through The Stars 81 600 Better
Homes Contest, continuing from April
Is to September Is.
The contest, already Endorsed by
scores of civic groups in the District
and nearby, last night received the
support Of the Petworth Citizens Asso-
citation, at meeting in the Petworth
School. Eighth and Webster streets
Earl w. Cooper, second vice presi-
dent, who presided at the meeting,
appointed William U. Watson as
chairman of a special committee to
push the contest in that section.
Herbert w. Marlatt was named an
other member of the committee,
which, Mr.. Cooper announced, will be
expanded shortly with appointments
from the Membership Committee
personnel.
At the same time the Northeast
Washington Citizens Association,
which adjourned for the season be-
fore the contest got under way, today
notified The Star it was interested in
sponsoring the movement in its area
$1,000 Prizes to Be Given.
In a communication from Evan H.
Tucker, president, assurance was
given that the $50 members Of the
association would receive notification
OF the contest and would be urged to
participate and to induce others to
do so.
The Star will give 1000 in cash
prizes to the citizens who complete
the most outstanding "renovizing"
projects during the period of the con-
test. The prizes will be grouped in
two classes: For homes valued at
$4,000 and less and for homes ap-
praised at more than $4,000.
Prizes in each class will be:
First prize, $3.50; second prize, 500:
third prize, $50. and four honorable
mention prizes of $25 each.
Giving its whole-hearted APPROVAL to
the contest, the Washington Board of
Trade las donated a $100 cash prize
for the best landscaping treatment
given a home in Washington or near
by during the period of the contest.
Besides this, The Star will award
500 i'll cash to the citizens associa-
ton which is responsible for the
greatest percentage of home improve
ments in its territory between now and