The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-05-08
FILA Is Confident

The Federal Housing Admins
tration also thinks the outlook for
tie future is rosy. Its efforts in
behalf of housing, undertaken nearly
a year ago, are now at the stage
where tangible results can be ex-
pected. it believes.
FEAS first task was an attempt
to stimulate modernization of homes.
1t supervised organization of 5000
community committees which sent
men from door to door suggesting
to home owners that they improve
their homes with the help of gov
ernment-inSured loans.
On April II, FILA had insured
134032 loans for a total of $50,
600 and had been told by banks that
loans amounting to $350,000 5000
had been made for this purpose out
side the insurance system. Another
100000, Administrator Moffett,
is in immediate prospect.
The more important part Of the
housing program did not get under
way until January. Before it could
start long-range reform of home
financing, it had to wait for states
to legalize loans, by banks, up to 80
per cent of the appraised value of
real properties. Nearly all of the
states have now passed enabling
legislation.
FILA and RFC have both just
launched their first mortgage COM
panies, organizations intended to
trade in mortgages on nationwide
basis and provide liquidity for the
funds the banks and insurance COM
panies put into building.
Applications Pour In
Thus, Mr.. Moffett believes the
stage is set for private capital to
finance a real boom in home-build-
ing. In the last few weeks applica-
lions for insured mortgages have
started coming in at the rate OF
100000 to $1,000,000 day.
FILA has applications, also, for in
surance on low-cost housing projects
amounting to $3O0,O0O,OO0, and it
has approved four of them. Work
on these should be under way this
year.
Meanwhile, the curve of govern
ment spending is ready to turn up
ward again after dip marking the
last stages of the 49, 00,000,O00 pro-
gram, Spending under the new pub
lie works bill will get under way
fast, the Administration is conf
dent, because it now has plans for
the work and an organization to
carry them out.
PWA's Housing Division is just
moving into the construction stage,
and for the next two or three years
should supply work steadily. One
slum-clearance project is under
construction, bids have been asked
for another. Demolition is going on
for three more. Most of the other
projects are in the land purchasing
stage.
Still another prospect on the
horizon may hold promise for ac-
tivity in home building greater than
the United States has seen isnce war
DAYS. This is the pre-fabricated
home. Several companies are at
work trying to make them at prices
that families never before able to
consider home ownership can al
ford. Tentative prices are $1,000 for
a. four-room. home, $4,000 for seven
rooms.
Trial Of fabricated homes at
the governments ReedSVille CIV. VaD
subsistence homestead project was
not successful and the PWA Hous-
ing Division says it has seen moth
ing in this line able to stand up
through it's necessarily long amorti-
cation period.
Summer May Tell Tale
There have been hints, however,
that industry would announce an
improved product late this spring
and push sales actively.
Meanwhile, N H. Engle, assistant
director of the Bureau of Foreign
and Domestic Commerce, predicted
in an address few days ago that
IAN entirely new technic of home
building will leave the present in
dustry high and dry" unless it takes
very drastic steps to remove the
stumbling block of too high costs
What this would mean to labor
and to existing real estate values no
one is sure.
With the terror and uncertainty
that accompany all revolutions, the
construction industry and its allies
are waiting to see if pre-fabrication
is likely to revolutionize them. De-
velopments this summer may tell