Evening star., 1937-08-21
B35,0DO,0lO HOME.
PROJECTS 0. KID
-arge-ScaIe Division Takes
Mortgages on 5000
Units.

The Large scale Housing Division
bf the Federal Housing Adninistra-
ion, as of July 81. 1887, had given
It's approval to projects involving the
construction of 8,002 dwelling units
Tor total capitalization of S25, 1885,
642. on which the mortgages would
total $27 1872 900, Stewart Mcdonald,
Federal housing administrator, an
bounced today.
The large-scale housing program
provides rental accommoda tons for
families in contrast TO the Housing
Administrations primary objective OF
nsuring ne-to-four- family dwellings
made by private financial institutions
Tor the sales market. In no case does
he Housing Administration lend
money. In large-scale housing pro-
ects the Housing Administration
Eimply insures mortgages on large
scale rental projects.
OF this total volume of business, six
projects, providing 5s6 family units,
nave already been completed and are
n operation, These units involve a
capitalization of S7,143,864 and in
Eured mortgages totaling $5,465 900.
One OF the completed projects, con-
aiming 27s family units, and involv-
Ing a mortgage of $l.150.000. has been
Fefinanced through an insurance COM
pany without Federal Housing Admin
Istra ton insurance.
Under Construction Now.
At the end Of July 10 projects, con-
Faining 2,2ll family units, involving
capitalization of S9,36l34l and in
Fured mortgages totaling s7,176,O0O,
were under construction. Financing
has been arranged on seven projects,
which will contain $50 dwelling units;
capitalization. S4,86l 800; mortgages
$3,74l 900. Approval has been given
l other projects. involving 3,23o
dwelling units; capitalization, $l4,-
BIS, 900, mortgages, Sll ,950,000.
These "a projects, sponsored by
private corporations limited as to divi-
bends while the mortgage insurance
is in force and subject to regulation
by the Federal housing administrator,
show an average valuation per family
unit of $4.422. and an average mort
Gage per family unit of S3,4l6. In
contrast to these figures the average
aluation of the individual homes
purchased under the Federal Housing
Administration insured mortgage
Eystem amounts to $685. and the
average mortgage s4.634.
The Federal Housing Administra-
ions large-scale housing program is
based, not upon Government subsidy,
put upon cooperation with private en-
ferprlse and private capital in the
provision of rental housing of ap-
proved standards, Mcdonald ex-
blamed. Under this program, the
greatest possible economies in capital
POSTS consistent with sound and dur
hble construction, plus the safety fac
or provided by the administration S
insurance of the mortgage. make pos
kible rental rates reasonably low but
adequate to the costs involved. includ-
ng reaSona BILE margin for earnings
lpon the capital.
Standards Are Imposed
While certain requirements are
placed upon builders OF large-scale
housing projects financed under the
insured mortgage system. these re-
Auirements are in no sense arbitrary;
qualitative standards rather than rigid
requirements are applied Certain
basic elements, however, must be en-
bodied in every project in order to
hualify it for approval. These ele-
nents are summarized as follows:
l. The community in which the
project is to be developed must give
Evidence OF a definite need for hous-
. ng of desirable standards within the
rental range OF the income groups for
which the project is intended.
2. The site must be suited to the
type of residential development pro-
posed. readily accessible to places of
employment, shopping centers, etc, by
means of public transportati ton at rea-
Sonable cost.
3. The buildings must be planned to
blow for maximum light and air and
20 provide the highest degree of hous-
! ng amenities consistent with econom-
|cal cost and operation
4. Specifications must provide for
durable type of construction which
will depreciate slowly and require
minimum of maintenance, so that the
buildings will not only be useful and
productive beyond the life Of the mort
gage, but also cost to operate during
his period as economically as is con-
flstently possible.