Evening star., 1935-01-26
HOUSING ACTIVITY
BRINGS NEW ERA
Federal Deputy AdminiStra'
tor Predicts Increasing
Construction.

An era of continual residential con-
struction, with houses to buy and sell,
with drastic slumpS eliminated and
with free flow Of capital throughout
the country. is pictured as one of the
direct results OF the operation of the
national housing act by J. Howard
Ardrey, deputy administrator of the
Federal Housing Administration in
charge of Title II
This prediction was made by Mr..
Ardrey in a statement to the National
Association of Real Estate Boards at
its annual Winter meeting this week
in Houston. Tex He outlined the
many activities of the Federal Govern
ment in relation to real estate and
discussed the special purposes of the
Federal Housing Administration.
81 think I can describe the Housing
Administrations work in one SEN
tence," he said. "It proposes to foster
the improvement of existing real prop
erty, and it proposes to make urban
residential property easier to buy and
safer to finance forevermore."
Among the effects of the moderniza-
ton program for improvement of ex-
isting property, Mr.. Ardrey cited the
centering of attention upon real estate
through the thousands Of local better
housing campaigns. an actual increase
in the value of properties modernized,
and an increased interest in up-to-
the-minute ideas on building mate
rials, equipment. styles of architecture.
New Building Desire.
AN appreciation of the latest in
housing" Mr.. Ardrey continued,
should go far toward arouSing de-
sire for new construction. Thus, the
modernization credit plan is, in this
way as well as others, complementary
to the second and long-range portion
Of the Federal housing prograrl-the
mutual mortgage insurance plan
through which it is hoped to stabilize
home construction and financing dur
ing lean as well as fat periods"
Mr. Ardrey stated that the insured
mortgage plan was announced on No
vember l, that more than 2,700 finan-
cial institutions with over $15,500, ,000,-
900 of assets are at the present time
ready to lend money under the plan,
and that the stage is now set for the
development of the program.
THE Federal Housing Administra-
tion," he said, has an organization
reaching into every State and every
key center, equipped with staffS of ex-
perts on mortgage and appraisal prac-
tice.
Results will undoubtedly be cumu-
lative, however. There is much work
to do in clearing existing stagnation
through a refunding of debt in de-
faulted mortgages, in promoting the
participation of private resources and
in changing laws in A States which
conflict with the program"
Difficulties TO End.
Mr.. Ardrey expressed commence
that all difficulties could be overcome,
with the aid of such organizations as
the National Association of Real Es-
tate Boards. Explaining the opera
tionS of titles II and III, he pointed
out how these operations bring bene-
fits both to the borrowing residential
OWIlCI dllN w OiiS ASAAAAAN0
financial institution, promote safety In
real estate investment all along the
line and bolster the value OF real
estate mortgages by providing uni
form standards and by providing
means of making them liquid.
THE picture we have been gradual
ly painting" he said, "is OF an era
continual residential construction with
houses to buy and sell. Elimination
of drastic slumps should be of vast
assistance to your industry. So should
the flow of capital from one section
of the country to another, and the
possibilities for maintaining general
real property values at fairly sta
BILE level are also of primal import
ance.
I'VE of the Federal Housing Ad-
ministratior believe that we have a
good friend in the real estate indus
try. We will watch with apprecia-
ton any efforts you may make to
foster the insured mortgage program.
Spread the word to present and
prospective home owners, and to op-
erative builders of whom there are
many in your ranks, so that they
learn of the new plan through which
they can finance construction. Spread
the word to private capital to enlist
is in the campaign. The aid of banks,
building and loan associations and
other institutions should be encour-
aged.
1.-THE result will be, I unhesitat-
ingly predict, renewed and perman-
emily stable activity in your industry
and a contribution to the social and
economic welfare of our country as
a whole"
h.