The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-11-02
IS BILLION DOLLAR
BUILDING BOOM IN
TEN YEARS IS GOAL
Basic Maximum interest Rate
OF Five Per Cent for Whole.
Nation Set
INSURED TO 80 PER CENT
Emphasize Construction Of Sub
urban Homes to Make Work.
ers Independent
INSURED TO 80 PER CENT


Washington, Nov. 2.-P)-Presi-
dent Roosevelt. overruling his hous-
ing administration on interest rates
to aid the great mass Of our people,"
launched Friday a gigantic home
building campaign which may aim at
a $4,000, 900 construction boom
during the next ten years.
Setting basic maximum" inter.
est rate of per cent for the whole
nation. the administration announc-
ed regulations under which loans for
home building will be insured up tc
80 per cent Of the appraised value.
James A. Moffett, former Standard
Oil executive whom the president
drafted to be his housing administra-
tor, thought the interest should be
per cent III some sections, but the
president disagreed.
Besides the S per cent interest
there will be a service charge Of =
of one per cent yearly on new homes
as we'll as an insurance premium OF
the same amount per year.
VIOEt&6ScS 10 on ICT OSut
Besides aiming to encourage new
home building, this second phase of
the nationwide drive under the hous-
ing act provides for mutual insurance
Of mortgages on existing dwellings up
to 90 per cent OF appraised value, and
for the organization of mortgage
loan companies to sell securities bias.
ed on mortgages.
The first mortgages are expected to
be approved by the housing admins
tration within a day Or two. Loans
will be made by banks and other pri-
vate agencies none by the govern
ment.
The Roosevelt administration an
nounced no total sum which It hoped
would pour out in this new effort to
stimulate the durable goods" indus
tries. But Henry I. Hartman, presi-
dent of the chamber OF commerce OF
the United States. suggested In
speech Thursday night that the hous-
ing act could be used to stimulate
SIS OOO, DOC. 900 worth Of BODYBUILDING
within a decade.
He stressed particularly the build
ing of suburban or country homes for
industrial workers OH fairly large
plots so they could raise much Of their
own food and thus become partly
independent of wages" It has been
noted that Harriman's ideas iii this
respect closely resemble those Of the
Roosevelt administration.
Cost $1,000 or Less
Declaring such homes could be built
by mass production for $4,000 OF less.
he told the national paint, varnish
and lacquer association:
with an accumulated shortage OF
housing in this country now, and with
the undoubted impetus there is to
slum clearance and to more adequate
housing, l believe housing program
that would contemplate the construc.
ton of even as many as 10000 houses
year for the next ten years Is not
impossible of attainment"
He calculated that each new home
would mean the equivalent OF the
employment of two men for q whole
year. Thus, if $4,000 houses a year
were built, it would mean putting l.
SOC, 900 persons back to work.
Hartman emphasized that the
work should be done by private in
dustry.
Plan Now Limited
At present the housing act limits
the total amount of mortgages on new
homes which may be insured to ST.
600 900 900 but gives the president
power to increase that sum II ne
deems advisable. Just now the loan
insurance is limited to homes In or
near urban communities.
While the approved "basic interest
rate for loans for constructing one
family to four-family houses was set
at per cent, the maximum basic
rate for refinancing existing homes
will be 5k.
Mortgages calling for higher basic
rates would be insurable under the
governments mutual plan.
To the basic maximum" for refi-
nancing houses already existing must
be added per cent year for insur-
snce and, in case there is a change OF
lender in the transaction, 9 service
charge of \. Of per cent.
"This is the first time in the history
of finance" statement by the hous-
ing administration said, that q uni
form basic interest rate has been APP
piled to private capital in the United
States"
Insured mortgages may range as
high as $4,000 each and may run
for r,orind 11n tn % wears
The housing administration. pre-
pairing to receive insurance applica-
lions for mortgages, announced that
they may be filed in So offices
throughout the country. These OFF,
ces included: Dies Moines, Ia;
Topeka, Kan: st. Paul. Mimi; Kan
sas City. Mo; Helena, Mont: Omaha.
Neb: Bismarck, N. D.: Sioux Falls.
s. D., and Milwaukee, Wis.