Montana labor news., 1936-06-18
AGENCY
SHOWS HOW TO
GET ASSISTANCE

The Federal Housing Administra-
ton of which Mr.. Barclay Craighead
is the State Director, has informed the
union headquarters of Butte that his
office had received many inquiries
from officials Of several Of the build
ing trade unions of he state, asking
for information as tc the set-up and
plan Of operations of the Federal
Housing Administration with reference
to the stimulating OF employment
through the financing of projects for
home construction or modernization.
The Federal Housing Administration
has sent replies to these letters, one of
which was sent here for use in the
Montana Labor News. 1t is the de-
sire OF Mr.. Craighead to have as much
publicity given this subject as possible.
A copy of the amendment by the Com
mission follows:
In reply to your request, | will en-
deavor to briefly state the purposes Of
lhe Federal Housing Administration
and give you an outline of its methods
Of operation.
The Federal Housing Administration
was set up under the National Hous-
ing Act to rehabihtate the building in
dustry, to provide markets for durable
goods, to furnish employment to hun
dreds Of thousands Of idle building
craftsmen and workmen ordinarily en-
ployed in producing building materials
and other classes of manufactured
goods, to encourage home ownership
and home Improvements, and to reduce
costs of home ownership through a
m%odernized method of mortgage fl
nancing whereby interest rates would
be reduced and an opportunity af-
forded the man of small means to
maintain and pay for his home by
monthly payments generally in keep
ing with his earning capacity.
AS a temporary, emergency meas
ure which would put men to work in
the shortest possible time, Title l Of
the act, provided for a system Of mod
ernization credits for repair, improve
ment or modernization of homes, bust
ness or industrial structures, and other
types Of property improvements. A
Congressional appropriation provided
default insurance to private Lending
agencies for a certain percentage Of
loans made by such lending agencies as
a means Of encouraging such %institu-
tons to make small character loans to
owners or l~essees of the various types
OF property. Such loans were to be
made for periods not exceeding five
years and to be repaid in equal
monthly installments at the rate of in
terest considerably lower than all pre-
viously established rates for so-called
installment buying. This plan has
been em%inently successful and Montana
banks and finance companies have
made approximately $l,500,0 900 in loans
insured under it. Ii has twice been
extended by Congressional action and
the present expiration date is fixed at
April |, 1887.
Under the last act, modernization
credit loans are available only for re-
pairs and improvements to existing
structures, will be made only to own
ers or lessees OF such property, and
can no longer be made for the pur-
chase Of movable equipment. These
loans will be insured in amounts up to
$1,000 for the ordinary type Of struc-
lures, but can be obtained in amount
up to $4,000 for the improvement Of
commercial and industrial plants, ho-
tells, apartment houses, hospitals,
churches, schools and other Class A
types Of structures.
The permanent feature of the Fed
eral Housing Administrators program
is that known as Title II, of the Ma
tional Housing Act, or the amortized
single mortgage system which is avail
able for the construction or purchase of
modern homes in towns or cities, for
the refinancing OF existing mortgages
or the creation Of entirely new mortg-
age Obligations against such homes.
Only modern homes are eligible for
this type of mortgages and they must
be located in substantial residential