Evening star., 1934-06-20
HOUSING BUREAU
SEEKING OFFICES
r. H. A. Prepares for Great.
est Effort to Revive
Building Trades.
BY VINCENT TUTCHING.

Taking its place beside the other
alphabetical combinations of the
Roosevelt administration, the F. H.
A.-Federal Housing Administration
Is casting about the Capital for suit
| able quarters from which to direct its
far-flung property improvement and
home building program.
With selection Of Harry L. Hopkins,
Federal relief director, as head of this
new unit regarded as virtual GER
tatnty, the Government stands poised
for the greatest attack of the ailing
building industry that the country has
ever known.
Already the framework for a tre-
| mendous national campaign for home
reconditioning has been set up tenta-
lively, and the moment President
Roosevelt affixes his signature to the
bill passed by Congress Monday, the
great drive will get under way.
Strike at Vital Field.
In tackling the capital goods and
building industries, the administra-
tion feels it Is striking at the field in
| which the greatest percentage of un-
employment now exists. Figures have
been offered showing more than one
fourth Of all unemployed are iden-
tined directly or indirectly with the
building trades.
J Aid to the local construction in
| dustry was the objective of The Star
in launching its 81 900 Better Homes
Contest last April, a movement which
has spread with encouraging results
through every community of the
metropolitan area 1t will continue
through September Is.
Officials of the National Emergency
| Council. which drafted the compre-
hensive housing measure to the Presi-
| dents specifications, indicated today
! the existing Offices Of the council
| throughout the country probably will
| be utilized in setting the machinery
OF the housing program in motion.
The F. H. A. is expected to function
| directly under the N. E. c., which Is
the co-ordinating body of all the re-
covery agencies. Publicity, expected
to be an important factor in the
movement TO stimulate 81, 500 900 900
worth of home repairs and improve
|
be handled entirely within the new
organization.
viii Save Much Time.
In utilizing the field Offices Of N.
E. c. as bases, the F. H. A. will save
considerable time in getting the pro-
gram started 1t is hoped that loans
from private sources, backed by Gov
eminent guarantee up to 20 per cent,
for bettering homes may be made
within 80 days. Lenders and borrow
ers will be acquainted with the plan
through the publicity campaign.
Briefly, it means the home owner
who wishes to borrow to improve his
property may apply to his bank. trust
company, finance concern or building
and loan association for the necessary
amount, up to $4,000. The private
agency then submits the application
to the F. H. A, which passes on its
| eligibility and agrees to stand good
for 20 per cent of the loan.
On receipt of approval, the lending
| agency accepts the borrowers note
for the loan and works out a monthly
payment plan, which may extend over
a period of five years, with payments
as low as $40 a month. This feature
of the plan is expected to be of great
est appeal to the home owner, since it
obviates the burden of an additional
mortgage on the property.
Will Insure Shares.
In addition to the moderniZation
feature of the housing program, in
! surance of building and loan shares
becomes effective almost Immediately.
A percentage assessment on each
building and loan association will pro-
vide the insurance fund.
Various divisions of the F. H A.
will be set up. One will insure mort
cages on new homes up to 80 per cent
OF their appraised value. The insur-
ance fund will be subscribed by home
owners as a regular portion of their
payments on mortgages. The mort
cages may run as long as 20 years.
Another division will set up a similar
insurance fund for low-cost dwellings,
such as large apartment houses. Still
another division will supervise fund
for insuring old mortgages. In this
case an old mortgage may be re-
hnanced If 1t represents 70 per cent
OF the appraised value.
National mortgage associations will
be incorporated under Federal char
ter Funds for them will be largely
furnished by private sources and they
will deal in mortgages. They may
buy a group of mortgages and then
issue to investors bonds secured by
the mortgages. Thus, officials say,
funds will become available to To-
calities which have money frozen in
mortgages.
In The Stars contest the $1,000
prizes are divided in two groups-for
homes valued at $4,000 and less and
for homes valued at more than $l2,-
900. In each class the awards are |:
First prize, $3.50; second prize, 500;
third prize, $50, and four honorable
mention prizes of $25 each. The
Board of Trade has put up a 500
landscaping prize, while special prize
of 500 will go 10 the citizens asso-
citation promoting the most effective
campaign.
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