Evening star., 1937-09-11
LOANS FOR REPAIRS
HELD S57S,50D,ODO
u. S. Families Borrowed
Per Cent of Total Residen-
tiaI Value in 3 Years.

American families have borrowed
about one per cent of the total value
Of residential property in the country
to pay for repairs and modernizatior
since the campaign for remodeline
started three years ago this month
the United States Building and Loar
Leagues Home Building and Home
Owning Committee reports. Their
estimate on credit disbursed includes
only the amounts for structural re-
pairs, excluding the installation OF
heating plants and other detachable
equipment.
A total Of 1913. 100000 in modern
i5ation credit is estimated to have
been derived from the combined
sources of the savings, building and
loan associa tions, the banks and
finance companies. and the Home
Owners Loan Corp between Septem-
Der. 1884. and now In addition,
the League Committee computes that
about 500 900. 600 has been spent dur
ing this time by home financing insti-
t1Itions which had repossessed prop
critics on their hands and have re-
paired them for resale and that an
additional s50000.O00 has been put
out in cash for home renovation.
On the basis of the census of 1880.
existing residential properties were
estimated to be worth $4,000, 600. 900.
The decline in real estate values
partially offset by additions to the
existing volume of houses would place
properties between s57, 900 600 900 and
$4,000 100000, the committee says.
End of Era Here.
"The end of the specialized era
In home repairs and modernization
has arrived, with the probability that
only s5,000.O0 to $4,000 900 worth
of this sort of work will be done
each month from now on" comments
Edward C Baltz Washington, chair
man of the League Committee. Saw
inrs. building and loan associations
are placing about this amount every
month. and the other sources of this
credit are either totally or partially
closed off"
The Home Owners Loan Corp
ceased moderniza tion activities a year
and three months ago. and this past
Spring the F. H A. stopped insuring
the modernization notes of CONNER
eial banks and finance companies,
thus shifting the burden of modern
tzation credit back on the shoulders
OF the savings and loan institutions,
which have always done it as part
OF their day-to-day operations.
More Repairs Needed.
MFR. Bsltz mentioned the lessening
demand for such repairs traceable to
the mounting cost of making them.
Building materials have increased
close to 20 per cent in cost since
1898 and building workmen are earn
ing an average weekly wage Is per
cent higher than in 1882. In this
connection he points out that not so
large portion of the modernization
dollar is going to the building laborer
as in 1882, when it was estimated that
10 per cent of all such expenditures
went directly To employment. The
league leader indicated that those
who obtained the more than half bill
lion dollars worth of credit TO do the
repair and remodeling work in the
past three years exercised keen iudg-
nent in their own behalf as well as
contributing to the making of more
Jobs.
The need for continued general
activity in home repairing and re-
modelling. however, is by no means
over. even If the years specializing in
this activity have come to a close. he
said. Only about fourth of the
necessary repairs and remodelinq
which the Department of Commerce
estimated TO be needed on homes five
years ago have been completed. count
ing the cash and credit expenditures
alike during the past three years.