Evening star., 1935-07-13
S90,0)D,00O LOANED
FOR UNDERMINING
Total for First IL Months of
Operation Reported by
F. H. A.

During the first IL months of oper-
alton of the modernization credit plan
of the Federal Housing Administra-
ton approximately $90,000,000 was
advanced to borrowers by private
lending institutions for improvement
and repairs, and an estimated aggre-
gate of $50O,OOO,000 additional work
was generated in connection with the
program, according to Acting Admin
istrator Stewart Mcdonald
BY the first anniversary of the
signing of the national housing act,
June q, a Nationwide house-to-
house canvass to determine moderni-
cation needs had covered 100000
homes and had produced ap-
proximately 100000 modernization
pledges by home owners.
Defaults Infrequent.
At the same time $4,000 banks,
finance companies and other lending
institutions throughout the country
were cooperating with the Federal
Housing Administration, with a ma
jority advancing repair credit to bor-
rowers. In each instance 20 per cent
OF the total credit advanced by each
separate institution is insured by the
Housing Administration, which makes
no loans of any nature itself. Sig
nlf1cant in this connection, according
to Mr.. Mcdonald, is the fact that de-
faults on modernization credit ad-
Vanced throughout the country have
been so infrequent that hundreds of
banks have expressed entire satisfac-
ton with the modernization credit
plan.
The modernization credit plan as
originally provided for under the ma
tlonal housing act made it possible
for owners of one to four family dwell
1ngS to obtain credit from lending in
stltut1onS in amounts not in excess of
$4,000 for the improvement and repair
OF existing property. Such credit ad-
Vances are repaid in regular INSTALL
ments to the lending institution. No
insurance premium is required on
such loans. The maximum term for
such credit is five years.
Credit Limits Extended.
Recently the modernization credit
plan limits were extended to en-
brace commercial-residenti indus
trial and manufacturing properties
with the amount insurable by the
Housing Administration set at a new
maximum of $4,000. Through this
means a new and widespread market
Tor modernization and repair was
opened. Machinery and equipment
peculiarly adapted to buildings and
to the operation. of businesses con-
quoted therein also are now eligible
1or credit. AS in every other phase
OF Housing Administration operation,
these credit advances are made by
private lending institutions at their
own discretion, with the credit in
sured by the Housing Administration.
THE modernization credit plan"
Mr.. Mcdonald said recently, sis a
quick-action, home-emergency plan
designed to energize business by ia
cll1tatlng repairs to homes and build
1ngs. Owners of almost any type of
building may borrow money for re-
pairs and improvements from private
nnanclal institutions approved by the
Housing Administration.
To-day, after year of operation,
literally hundreds of thousands of
homes have been given a new lease
on life. Our living and working con-
dltlons have been made more attrac-
tive, more efficient. and more stable
as result. In the coming months
anticipate even greater strides in
modernization throughout the coun-
try"