Evening star., 1935-01-05
F. H. H.A.PLAN TO AID !
HIGH PLANE AREAS
Mortgage Policy to Guard
Against Developments in
Doomed Sections.

4HC CulIlNatlUI VI IlUHlc UullulLl6
and community planning on q plane
in keeping with the highest standards
Of modern housing in America Is q
major objective OF the Federal Hous-
ing Administration in extending its
mutual mortgage insurance program
to neighborhood developments, ac-
cording to q circular covering subdi-
visions just issued by the administra-
ton.
In line with the sound policy Of Ad-
James A. Moffett in the
of home building, the
Federal Housing Administration will
not encourage, by insurance, the max
ing Of mortgages on property located
In areas doomed to decline in desira-
bility or where dwelling projects will
burden the city with costs Of a mean
ingless dispersion Of services and pop
ulation."
On the other hand, the administra-
ton will favor the development of
stable neighborhoods and
encourage orderly expansion of the
urban pattern.
New Areas Questionable.
Due to the surplus of undeveloped
or partially developed subdivisions
existing in the country today, the
economic soundness of building up
new urban areas at this time is ques-
tionable, the Federal Housing Admin
iStration points out
There is generally an enormous
excess Of subdivided lots in this coun-
try over the number for which alb
sorption might reasonably be antici-
pated in the next few decades" the
administration says in its instructions
to insuring Offices.
only the soundest new neighbor-
hoods can compete successfully and
be built up completely. Only by the
process Of abandoning those areas
which are plainly superfiuous or pre-
mature, by consistently developing
those which are ripe for use, and by
regulating the number of additional
lots placed on the market, may the
present chaotic situation be reduced
to order and possibilities of achieving
security for needed new neighborhoods
be realized"
Unusual Risks Noted.
The policy Of the Federal Housing
Administration will be to take cogni-
zance OF any condition which produces
unusual risk in real estate investment
and mortgage lending, but at the same
time not stand in the way of new
construction and of desirable urban
expansion. The Federal Housing Ad-
ministration is prepared to assist in
the development of areas which both
are needed to care for increasing pop
ulation or changing modes Of living
and are so located and planned as tc
offer the prospect Of continuing de-
STABILITY for residential purposes.
Standards to be set up by the Fed
eral Housing Administration in this
connection will not be intended to
regulate subdividing throughout the
country, nor to control the pattern OF
land development, but rather to insist
upon the observance of rational prin-
ciples of development in those areas
in which insured mortgages are de-
sired.
Tells Minimum Rules.
The circular sets forth certain min
imum requirements which the subdi-
vision must meet before homes erected
therein may be eligible for mutual
mortgage insurance under the Fed
eral Housing Administration plan
The administration will take into care
full consideration the probable future
of the communitys development in
this connection. In addition, the gen.
eral neighborhood must be up to stand
ard with respect to geographical To-
cation. conformity to city plan, zon-
ing regulations, deed restrictions, ac-
feasibility, availability of utilities, etc
Certain other desirable standards
are recommended but the Federal
Housing Administration points on,
that they are not laid down as inflex-
ible conditions for mortgage insurance
They include adjustment OF subdivi-
sion layouts to the topography Of the
locality, advantage taken Of natural
features, condition of streets, curbs
walks, curves and grades; paintings
such as trees on all streets; length
Of blocks and lot dimensions and gen.
eral planning Of the subdivision as q
unit.