Evening star., 1943-04-17
FHA Insurance
Asked for 1851
Dwelling Units
March Upturn Due
To MuIti-FomiIy
Project Plans

Applications for Federal Housing
administrator insurance of So null
ti-family war housing projects
which would provide 4,631 dwelling
units for war workers were filed
with FHA Offices during March,
Federal Housing Commissioner Alb
ner H. Ferguson announced today.
The marked upturn in applica-
tions last month reflects increasing
interest on the part of builders and
private lending institutions in de-
veloping multi family projects under
the special provisions for insured
financing available under section
sos of the National Housing Act, Mr.
Ferguson said.
The proposed projects involved in
the March applications would be
financed by insured mortgages to-
falling Sl3013650 In the preceding
eight months in which operations
were conducted under section 608,
applications were received on 113
proposed projects, involving 10.354
dwelling units to be financed by
mortgages OF S4U.LoL ,0UU.
Section Added Last May.
Section COS was added to the Ma
tlonal Housing Act last May to IA
cilitate privately financed construc-
ton of multi-family apartments for
war workers War housing financed
under section 602, which has repre-
sented the great majority of the
war building insured by the FHA,
is restricted to one-to-four family
dwellings.
In the light of prevailing shortages
of war materials. multi-family prof.
portunltles for economies in use
of materials than are possible with
single-familv detached dwellings.
This is particularly true in the use
of metals for plumbing, heating and
wiring and for utilities, he said.
AS is the case with all war housing
built under the MAS general pro-
gram, projects financed under sec
ton 608 may be undertaken only
In the officially designated critical
housing areas and only where
local quota for privately financed
war housing is still available.
Use of critical material must con-
form with the War Production
Boards war housing construction
standards. and the completed quar-
ters must be reserved for rental to
eligible war workers.
Interest Limited to Per Cent.
The insured mortgage may cover
up to 30 per cent of the FHA's es-
innate of the reasonable replace
ment cost of the completed prop
erty, including land, but in no event
may exceed the estimated cost of
the completed physical improve
mentS, exclusive of off-site public
utilities and streets and of organi-
zatlOn and legal expenses.
The FHA also insures mortgage
advances during construction on
section SOB projects, which assists
builders in securing construction
money on reasonable terms. Inter-
est rates on mortgages insured under
section 609 are limited to a maxi
mum of per cent
BY March 81. the FLA had issued
commitments to insure MORTGAGES
of $40 221, 700 under section sos on
78 projects involving 7431 dwelling
units. These projects are now under
construction or scheduled for early
start Applications for 70 projects
involving 5,72l dwelling units. were
under examination at the end of
the month
The $4,000 100000 increase recently
voted by Congress in the FHAs
Title VI war housing insurance au-
thoriza ton is available both for
projects developed under section
sos and for one-to-four family struc-
lures financed under section SOB.