The Washington times., 1935-03-12
HOUSING To GET
TWO BILLIONS,
j, S.-BACKED
(continued from First PaRe)

CONTINUED from First P0Re)
range financing through the Fed
eral Housing Administration"
In addition to these prospects,
which are given in some detail,
the association declares that all
told it can promise 100000, 900
more activity as soon as the ball
starts rolling.
Leaders Take Heart
The sudden development in
these fields has put considerable
heart into the leaders of the Ad-
miniStration which has been get
ting anything but praise and op'
timism since the drive started in
Congress against some Of the Ad-
ministration's pet measures.
It is taken to mean that bust.
ness men are now ready to invest
their money again in the tre-
mendouS building field, which
has been comparatively inactive
for two or three years.
It also means that large build
ing operations, including thou
sands Of small homes, will be
started this spring in a much
larger way than at any time be-
fore under the New Deal.
Follows Selling" Drive
The decision on the part of in
surance companies follows one Of
the most intensive selling"
drives seen in this country. The
Federal Housing Corporation
came into being last summer;
and it's main work has been to
sell confidence in this Govern
ment to the banks and lending
institutions. At times the task
has seemed beyond human poSSi-
bility, but the driving force put
into it by Housing Administrator
Moffett seems to have broken
down opposition.
In other words, the most prac.
tical men in the financial field
apparently have come to the
point where they know it is not
only safe but profitable to lend
money by the millions on small
homes, on 2O-year mortgages, in
sured by the United States Gov
ernment.
Applications for housing aid
are pouring into the Federal
Housing Administration, the aver
age home to be built with U. s.
aid being around $4,000. These
applications range from single
homes to large projects including
100 houses or more.
Delays in this part of the Ad'
ministration's housing program
can be blamed partly on the fact
that while the U. S. offers to in.
sure mortgages up to 80 per cent
of the value, in many States the
limit on such insurance has been
80 per cent.
rs States Raise Limit
President Roosevelt wrote to
the governors of the States a few
weeks ago calling their attention
to this discrepancy, and since
then 26 States have raised the
limit to meet the Governments
offer. The Federation Housing
Administration is still to hear
from % States, of which 18 have
legislatures in session. The other
four are Mississippi, Kentucky
North Carolina and Louisiana.
However, by a. trick of the law
the larger insurance companies
are permitted to lend up to 80
per cent even in the States where
the State laws limit insurance on
mortgages at so per cent; SO
when the flood of insurance com
pany money is poured into low-cost
housing, as expected, the State
limitations on insured mortgages
will not be a barrier.
Congress is told by the National
Retail Lumber Dealers Associa
ton, through its secretary, Frank
Carnahan, in circular letter:
"ClOse cooperation with Ad-
miniStrator MOffett makes us
feel very optimistic for the
future. Private financing,
backed by Government insur.
ance, will prevent further drains
upon the U. S. Treasury, and
at the same time provide the
employment relief that is being
contemplated by the proposed
Government subsidy"
The last statement is in oppo.
sition to the housing projects
under the PWA, which have been
opposed by financiers and build,
erS generally.