Evening star., 1937-07-17
HOME LOAN BOARD
ANNOUNCES PLAN
TO HELP BUILDERS
ation-Wide Program to As
sure Small Owner of a
Sound Investment.
SCHEME TO PREVENT
POOR CONSTRUCTION
Benefits Also Aimed At Are Elm.
ination Of 0bsolescence by
Poor Planning.
The Federal Home Loan Bank Board

The Federal Home Loan Bank Board
today announced a Nation wide pro-
gram to assure the small home builder
Q sound investment and eliminate poor
construction, with its inherent waste
and loss of property values
The plan will link home financing
agencies, architects and technicians to
bring supervised construction to a
field which embraces 80 per cent of
American families, whose annual in
comes Of $500 or less restricts them
to homes costing less than $4,000.
Tho idea has been developed and
tested the past two years through the
IL Regional Banks Of the Federal
Home Loan Bank System and its lead
ing member institutions
To be known as the Federal Home
Building Service Plan, it is designed
not only to benefit the home seeker,
but to safeguard lending agencies in
. field where it is expected that 81
100000, 900 will be spent annually for
the next decade-the biggest single
item on the Nations construction
program. 1t strikes directly at past
evils which have resulted in rapid
deterioration OF properties, dwindling
equities and the passage OF entire
neighborhoods into obsolescence.
Benefits OF Plan
In lone package" the home seeker
gets Through his lending agency:
Sound financing counsel
The largest loan and most liberal
terms consistent with his resources
and credit.
Competent architectural aid in de-
signing his home
A structure suitable to his family
needs site and neighborhood.
Selection of qualified contractor.
Specification of proper materials and
. check on those materials.
Supervision OF construction.
A Federal Certificate of Registra-
MON, stating that his home has been
built under the plan-thereb
STRENGTHENING investment security and
resale value.
The plan is q localized enterprise,
financed by local capital All OF the
1900 thrift and home financing in
st4thtions OF the Federal Home Loan
Bank System are eligible as lending
agencies to make use Of and direct
ti1s plan locally. Once inaugurated
they enter into cooperation with
groups of architects or technicians,
already formed or in the process of
organization in all parts Of the coun-
", who will supply = technical service
ut 4 modified fee The groundwork
for the program has been carefully
developed through the field forces of
the bank system and the Home Own
ers' Loan Corp, whose technical tall
ent directed the reconditioning of
$4,000 American homes and whose
opera tions revealed the full extent of
poor materials and flimsy construction
tn the low-cost field. Official bro
chures giving complete details for es-
tablishment and operation of the plan
are now being distributed throughout
the bank system.
Mutual Benefits.
As pointed out by the bank board,
hhe program Is based primarily on
the mutual interests of borrowers and
lenders. The local lending agency will
be enabled to grant preferential loans
and terms to those who build under
the plan because Of increased security
furnished by proper design and con-
struction. The services of architects
can be obtained at moderate costs be-
cause OF the development of quantity
supervision in a field where their serv-
lees have seldom been utilized. And
economies of construction and
sotlnder investment will more than
compensate the home owner for the
lSee HOME LOAN, Page C-3D