The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1934-10-05
MOFFETT TELLS
!: BENEF|TSOF
HOUSING ACT
BY JAMES A. MOFFETT
: written for International News Service)
Federal Housing Administrator


Let us consider, in this article
some of the benefits offered by
. the National Housing Act to the
individual citizen, as distinguished
from business and industry gen.
orally.
In the first place, under our
,modernization and repairs pro-
gram, which is already being put
into effect with gratifying speed
| the owner Of home or business
property may apply to a bank
Aor lending institution for a loan
ranging anywhere from 500 to
$4,000, to modernize, alter or
otherwise improve his building.
Must Be Able to Pay
To get the money, the owner
must have reputation for reli,
ability, and steady income
which will enable him to repay
the loan at the rate of one-fifth
Of the total each year. That is,
if he wants to borrow $1,000, he
must repay it 5000 a year through
a period of five years, which
would mean paying it back in
regular monthly installments of
less than SIT.
Because the Federal Govern
ment insures the bank against
loss from modernization and re-
pairs loans, the borrower is not
required to have on his note any
signature or Endorsement but his
own, unless he is married. In
"Athat case, his wifes signature
salSo Is required.
Bear in mind that he is allowed
under the act an extremely lib
seral latitude in the expenditure
tof the money borrowed. He can
alter, repair or enlarge his home
aor business structure in almost
ANY conceivable way he may pre-
fer. He can put new garage
for his home, or repair or enlarge
the old one, or excavate under
his residence for built-in garage.
HE can lay a cement walk from
ibis front gate to his door, or he
may landscape his yard.
Farmers Use OF FUNDS
The farmer may use his mod
.ernization and repairs loan to fix
up his residence as he chooses. He
may use it to build a brand new
.Silo, or new fencing, or a corn
house, or a poultry house and
chicken run. He may, in fact, do
with the money anything that will
.improve or increase the value Of
the farmstead.
! For the owner of a business
tbuilding, there is a similar lati-
tude. He may put in modern cleo
tric light fixtures, or a new heat
ing system, or a burglar alarm
system. He may tear out the old
show windows and put in new
ones. He may divide a big room
into smaller ones, or he may throw
several small ones into one. He
may do anything that will increase
his income from the building or
improve its appearance or eff
cheney, so long as the changes or
improvements are confined to per-
1nanent or "built-in" features.
It has been estimated after care
full inquiry that at least 1880, 900
OF the homes in the United States
need modernization or repairs.
Very probably the number is even
greater than that. It is fortunate
property owner who has not been
obliged in the depression years to
let his holdings fall into disrepair
Interest Limited
He knows that the longer he al
lows a building to deteriorate, the
bigger will be his bill for repairing
. it. He knows, too, that he is Of
fered q real bargain in what he
has to pay for his loan. The Hous-
ing Act Stipulates that under no
circumstances can he be charged
more than IS a year for each $500
he borrows under the Housing Ad-
ministration's modernization and
repairs program.
In other words, when he makes
out his note for 500, he is given
sos on the spot, the bank deductS
SIS which pays all charges for that
500 for a year: and he pays back
the 500 in IL monthly install
ments, or $3.50 1-3 a month. He
fixes up his house and puts many
needed things into it on the in
stallment plan; and he realizes
how cheap that plan is when COM
pared with what he pays out in
buying anything else on the in
Stallment plan.
There is another way the citi-
zen may profit under the housing
act, whether he be property
owner or not. We are confident
that our successful better housing
campaigns will bring recovery and
prosperity to this nation. In that
event, every man who labors or
produces or buys and sells will get
his share of the enormous in
crease in business.
So far, we have considered only
the modernization and repairs
program. The housing act author
ICES still another: The new con-
Struction program. We expect to
complete about November l the
rules and regulations covering the
financing, under the act, of the
huildinC of brand new homes and