The chronicle-star. (Pascagoula, Miss.) 1920-1941, 1941-07-18
FILA PROGRAM
ASSISTS MANY
IN
IN ~ nfeufhs FLA Has Financed
Approximately fsSysee New
Small H1snna

Warrington, .. C--The Federal
Housing Administrators program.
which Is making at important con-
trioution 20 the supply o. moderate
priced housing needed during the
present defense emergency. Is
covering fts own expense b . wide
mara1n. Administrator AnnsF II.
Ferguson announced to-day.
During the fiscal year ended june
30. fezi. the PHAs current income
from insurance premiums, fees. and
investments tosaled approximately
sz43D00o0 Operating expenses OF
the program during the fiscal year
ammounted TO tl7.25z.000 and were
paid out Of income. with substantial
additional sEnmS being placed IN the
FHAsa insurance reserves.
In that sane i2-mOnth period.
mfr. Ferguson pointed out. approx
imately $4,000 new small homes
were started under FLA inspection.
At least IS percent Of these homes
are located in areas where defense
industry expansion has created an
urgent need for added housing.
Moreover. the great majority OF
these houses built under the FLA
plan are price ranges suited TO
meeting the housing requirements
growing out Of the defense pruduc-
ton program.
The FHAs Title ! program also
has contributed 70 an enlarged
housing supply at this time OF
rnavfrrstr. r~aaN 49, ~mf.ae@~.sns
asserted. Loans insured under Title
] nave financed needed repairs and
renovations 70 Q great number Of
dwellings, thereby assuring their
continued servieeabiiity during the
emergency. and have Gso financed
the conversion Of 9 considerable
number Of large old houses into
small apartments. Studies have
indicated { hat approximately SO
percent OF all Title l loans are ex-
pended In defense industry areas
AT q time when an adequate
supply Of satisfactory housing In
defense industry ceuters Is rerog-
nized - essential 20 the effective
prosecution Of the defense produc-
ton effort, the FEzAss program OF
loan Insurance has monilized
private capital to finance q large
part of the necessary housing con-
structtOn." Mr.. Ferguson asserted.
Through insurance premiums
collected by the FILA and small fees
charEeu for tnnpectipns and APP
p~raisals, the program has beer
operating on a self-gustaining basis
rs 70 Operating expense and I'M
creastng reserves have been provtd-
ed against possible future losses,
This part Of the defense housing
requirements has therefore been
provided without cost to the federal
government"
Under the Title 1 program. q por-
ton Of the claims for losses on
loans insured In prior years when
there Was no premium charge Is
still betng paid by the Recunstruc-
ton Finance c0fporattnn- How
ever. increasing income Indicates
That this portion OF the program is
approaching q completely self-sus-
tanning basis.
Losses realized on small-home
mortgages insured under Section
203 OF the National Housing Act
have continued extremely small.
Up TO May 81, lgzi. when mort
cages totaling Sa092.6ez.53p had
been insured since the start of the
FILA program in 1884, charges
against mortgage insurance reserves
had amounted to only 41316608.
Those charges. In fact, had been
substantially exceeded BY income Of
81. 1 .096 received BY the FLA
frcm prepayment premiums On In
sured mortgages paid off IN fun
prior to maturity.