Evening star., 1934-07-24
RULES PREPARED
FOR HOME LOANS
Federal Housing Admins
tratlon to Issue ReguIa-
tionS in Few Days.
BY VINCENT TUTCHING.

The final step before actually inSur.
ing loans for property rehabilitation
will be taken by the Federal Housing
Administration within the next few
days. it was learned today. when It
issues rules and regulations which
must be followed by private lending
loans.
The compilation of rules to govern
application OF the renovation and re-
pair section of the national housing
act is a task on which experts have
been diligently working for several
weeks. Their job has been made all
the more complicated because OF the
wide variety of laws controlling small
loans which apply in each OF the
States.
Goal Of r. II. A.
A set of rules that can be applied
nationally and at the same time pro-
vide the foundation for "fool-proof"
machinery for loosening property
reconditioning funds has been the
goal of the F. II. A. in working out
these regulations. 1t was explained.
From the standpoint Of borrowers IL
Is the objective OF the administration
to make the plan as simple as pos
sible. free of red tape"
1T may appear that we are prog
ressing slowly" spokesman for the
F. II. A. asserted. but that "a he
cause we are trying to make as near
perfect an organization as possible.
We do not expect to be infallible. but
we want to reduce our mistakes to an
absolute minimum
The Housing Administration is ask-
ing local residential contractors and
builders and lumber dealers, as we'll
as banks and financial houses in each
community, to Cooperate closely in
the Nationwide modernizatlon cam
paign. 1t is expected these win be
the key men in each community. and
since they have followed closely the
development OF the housing program
since It's inception, they are seen as
tne logical contacts for prospective
borrowers.
Bankers Pledge Aid.
Bankers in the District alrealv have
pledged their cooperation In the
modernization movement. and have
named special committee headed bv
FRANCIS q. Addison. Jr.. president of
tne security Savings and Commercial
Bank. to stand ready to work with the
administration in setting I'D local
plans.
The function of the F. H A win n.
70 guarantee 20 per cent OF the loans
maoe by accredited lending institu-
lions, Individual loans will be limited
10 $1,000, may be made for improve
ments to residential or commercial
property and may be repaid over
periods as great as five years,
Building authorities have estimated
That not less than 100000 separate
projects may be undertaken during the
next IL months.
Interest of civic committees and
home owners In The Stars 81 900 Bet
wa AANaiSo OOhtCob las Decn keyed 10
new pitch by the Federal Govern
ment's activity in the housing field,
with the result that campaign work in
the various communities Is going
ahead with increased enthusiasm.
AS soon as the Federal Housing Ad-
ministration completes its set-up it
will have available a supply OF mate
rial on modernization that will sup
plement that already prepared by The
Star for the use of home owners un-
dertaking property improvements.
May Extend Contest.
The extension of The Stars con-
test beyond the September is dead
line, due to the delay in getting the
Federal Housing Administration pro-
gram under way, Is now under con-
sideration.
This competition offers IA cash
awards for outstanding property i'm
provements. The prizes are divided
in two groups. for homes valued at
$4,000 and less, and for homes valued
above $4,000. In each the awards
are: First prize, $3.50; second prize.
500; third prize, $50, and four hon
| orable mention prizes of $25 each. The
Board of Trade has supplemented this
list Of awards with a special 500
landscaping prize.