Evening star., 1934-12-08
NEW F. H. A. RULES
AWAITED BY TRADE
Edded Regulations to Cover
Mortgages on Small
Type Dwelling.

Regulations released November 80
y the Federal Housing Administration
br private capital investment in low
ost housing projects through limited
ividend corporations make a provision
h line with that asked by the directors
the National Association of Real
Estate Boards in resolutions adopted
october 81.
OF supreme importance in relation
re- employment in the home building
Industry, however. will be the supple
nentary regulations still to be issued
Tut. referred to in the present text. to
over mortgage insurance for properties
occupied by one or four family dwell
ngs where developed by operative
builders or located in new subdivisions
n In other generally undeveloped
leighborhoodS This coming set of
Insurance rulings is awaited by the
ssociation with great interest as being
he rules which will operate upon by
ar the largest portion of single family
DWELLINGS, and other ordinary housing
projects.
Professional Building Greatest.
Modern residential building in actual
practice is no longer carried on by lot
wners themselves, building for their
|Nn use. Instead the trend toward
homes built commercially for sale to
Unknown buyers had become so strong
h the last building period that ap-
broXimately rs to SO per cent of the
ntire dwelling output. in representa-
i've cities studied. was then being pro-
uced in this way, according to report
|1ade under date of July. 1881. for
Sc Of President Hoover's Conference
|n Home Building and Home owner
hip.
With commercial building for un-
FnoWn buyers constituting so large a
ector of the industry, no informed
Judgment can be made as to the eco
Ionic effect Of the Governments
present housing plans, either under
w A. or under F. H A.. until these
emaining rules have been promul-
lated, officers Of the association point
opNb4liNdllN 4lO CSbllildGc Vail NC
nade of the effect Of the housing push
n employment until these regulations
re made known, and commercial
home building under the national
housing act can be planned. Further
hey hold. no commitment should be
nade by the Federal Government in
folving large-Scale direct Federal con-
truction Of housing until private COM
hercial Notwithstanding banks and
ther potential mortgagees-has been
Fiven reasonable opportunity TO study
he openings which the expected regu-
htions present for capital investment
nd needed new enterprise
Fears Capital Diversion.
Meantime, association officials point
put, the regulations made public in
circular No. of F. H. A. concerning
Insurance of mortgages on low-cost
housing projects under section POT Of
he national housing act, while they
over only projects built for rental,
o help toward opening the possibility
{ drawing private capital into limited
ividend corporations for strictly low
Ost projects. The association, which
pposes direct Government building
! Sut which recognizes the need at this
ime of subsidy to housing projects for
he low-wage group under certain con-
itions. has asked Federal study Of re-
trictions placed on limited dividend
orporations, looking toward encour-
cement of the placing Of private
guilty money in this field.
The new regulations as to these
projects appear to be liberal and fair
nd to apply to every type of corpora
ion which could be engaged in hous-
|ng. They include private limited
dividend corporations of any kind
having a set-up satisfactory to the
administrator. the 6 per cent return
which they permit may be cumulative.