Evening star., 1939-11-15
"A. D. A. Gets Loan
OF $1,50Q,000 for
LESS Than 1q6 Interest
D. c. Agency to Save
$4,000 in First Of
u.s.. H. A. FIotutions

Reports reaching the United
States Housing Authority today in
dicated that the initial $50,000,0 900
issue of short term loan notes for
the participation of private capital
in financing construction of public
loW-rent housing in II cities had
been snapped up by banks. Interest
rates offered averaged slightly less
than six-tenths of per cent, rep
resenting a substantial saving to the
local authorities who are now pay
ing from to 3ha per cent on loans
obtained from the Federal agency.
Included in the II parties to this
initial issue was the Alley Dwelling
Authority here, which announced
the Riggs National Bank here, with
several in New York had subscribed
In the form of q s1,50O,000 loan.
Bearing interest at the rate of six
tenths of l per cent, the A. D. A.
loan, as in the case of others, will
run for six months. The A. D. A.
IS paying the U. S. H. A. per cent in
terest on the money the newly OBJ
| tanned loan will refund.
In addition to the Riggs Bank
here, purchasers of the A. D. A. notes
included the Chemical Bank &
Trust Co., Chase National Bank, the
National City Bank, Guaranty Trust
| Co. and Manufacturers Trust Co., all
of New York.
Savings May Reach $3.50, 900.
The saving in interest to the local
| agency was said to be $4,000 On
| the basis of the total earmarking
for the authority the savings in in
terest charges may eventually total
$500 900.
The notes are secured by loan
agreement with the U. S. H. A. under
which the latter will make available
to the A. D. A. the amount of prin-
cipal and interest for the payment
to the new noteholders at maturity.
Funds derived from the sale of the
notes are to be used for land pur-
chases and construction of projects
and will be supplanted at later
date, it was said, by the definite obli-
cations held by the u S. H. A. at 3
per cent per annum.
Executive Officer John Ihlder also
announced he had submitted an
other loan application to the Fed
eral agency to finance another new
housing project here, all the dwell
ings in which meet A. D. A. stand
ards. A week ago the agency had
proposed dual project as an expert
ment in testing the housing theories
of both authorities. 1t was rejected
356 Dwellings.
The revised project now proposed
contemplates 1856 dwellings on the
same 38-acre site instead of 502,
because Mr. Ihlder favors a density
of approximately 10 dwellings per
acre, instead of the 16 suggested for
half the site under the original
application.
Because Of the reduction in num-
Der of dwellings the total amount
Of the requested loan was reduced
from S2,079000 to $1,485 900. The
estimated construction cost is $3,126
per dwelling, or $685. per room.
Other local housing authorities
that joined in the initial note issue
being f1oated by private banks are
Atlanta. Ga. $4,3Oo,0OO; Charleston
S. c.. $l,410,000: Charleston. w. Va
$l,700,000; Chicago. s3,465 900:
Louisville, KY. s7,OOO,O 900: Macon
Ga, 81 900, 900: New Orleans. s9,6OO,-
600; Peoria, ILL.,. $1,000 900: Philadel-
phia, s8900,0OO, and Pittsburgh
$1,000 900.
A total of SIS ZOO 900 has been ear
marked in U. S. H. A. loans for the
District