Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-11-13
CHANGES SOUGHT
IN HOUSING ACT
Needed to Encourage Build
Ina, Real Estate Boards
Unit Holds.

isiation and administrative changes
needed for encouragement of sound
new home building and national hous-
ing advance are outlined in program
supported by the National Associa-
ton Of Real Estate Boards after dis
cussions at It's annual convention in
Pittsburgh October 20 to % and after
subsequent conferences between Off
GERS of the association and admins
tration leaders upon present needs and
outlook in housing and new building.
The program backed by the associa-
ton is built upon the conviction that
In the present economic situation i'm
mediate and Nationwide stimulus to
home building is an urgent national
necessity.
Action in the convention con-
ferences follows adoption by the asso-
citation at Pittsburgh of series of
resolutions constituting platform as
to national needs in housing, real
estate finance, taxation and calling for
restudy of American cities looking
to protection of homes and other urban
investment against neighborhood de-
terioration.
Asks Following Changes.
The association, through Paul E.
Stark, Madison, Wis, president, asks
the following amendments in the law
governing the Federal Housing Ad-
ministration and administrative
changes under the act:
l. Amendment of the National
Housing Act to permit insurance of
mortgages up to 80 per cent of the
value of land and structures on homes
of $4,000 or under. Such mortgages
would be insured under procedures al
ready established by F.. H. A.
2. Rewriting or revival of Title I
of the F. H. A. Act so as to provide
for insurance of bank loans made to
operative home builders to assist in
financing construction.
8. The development of an approved
list of operative home builders eligible
for F. H. A. insurance on their con-
struction loans as well as for insur-
ance of general mortgages covering
their entire operations. This can be
done under the regulations and is con-
sistent with the present practice of
F. H. A. in having list of approved
mortgages.
4. A reduction of the interest rate
on insurable mortgages from to
per cent and frightening of the period
of amortization through appropriate
amendments to the act.
- st
80 as to provide for central mort
gage bank to purchase sound mort
cages.
6. Other changes previously re-
quested in the F. H. A. Act, including:
(a) Reduction of insurance premium
as capital amount of the insured
mortgage is reduced;
(b) Provision that in case of de-
faulted mortgage the mortgage re-
ceives cash or its equivalent for his
claim;
Co Provision for insurance of any
sound large scale housing project
without unavoidable limitation on
rentals;
Cd Provision for releases from the
general mortgage obligation on large
scale projects for sales made.
Down Payment.
That the average American family
can make only 10 per cent down
payment for its home was the con-
census of delegates present at the as
sociation's convention. President
Stark points out that four-fifths of
all homes are bought with 10 per cent
down payments and therefore carry go
per cent mortgages of one kind or
another. He believes that on the whole
1t is better that first and second mort
cages be consolidated in one instru-
ment with one mortgage so that the
borrower can have the benefit of a
repayment plan over long period of
years which is adjusted to his needs.
The association, at its convention,
affirmed its belief that the production
of housing for our people has, due to
new materials, new equipment and
new devices, which modern life re-
quires, become such technical and
difficult process as to require the best
available skill and experience. and
that to lower housing costs best hope
lies in encouraging development of
large-scale operations sufficiently
stable and we'll financed to plan their
operations far ahead, to give con-
tinuous employment to labor at a
wage commensurate with all-year-
around employment and to apply to
such operations the methods of eff
cheney which have demonstrated their
worth in other fields of manufacture.
Offering its aid and cooperation
to the Federal Government in the
housing conditions for persons of
small income the association has sug-
gested to Nathan Straus, administrator
of the new United States Housing
Authority, that private capital could
best be drawn into this field through
encouragement by the Authority of
public utility housing companies
operating under public supervision.
Such companies would be most effec-
tive in large-scale opera ton, might
be concerned both with properties
erected and operated for rent and
properties developed and built for
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