The Chronicle-star combined with the Moss Point advertiser., 1947-05-16


present tenants and prospective
tenants, with veterans having
preference"
The practice of selling on
credit terms to occupants was
halted, the dispatch states, when
the house banking committee,
acting Jointly with an appropria-
tions subcommittee under Rep.
Jensen Republican, low al.
adopted a resolution requiring
that FPHA accept only cash-on-
the barrelhead payments for such
dwellings"
The Associated Press states that
the national FPHA commissioner.
Dillon S. Myer, protested to the
banking committee, shat this
would remove the opportunity for
veterans to buy the houses"
HE commended also that it
would mean financial loss to the
government. since it would limit
sales to the few large companies
in each city which had the cash
ready to pay
Postpone Sales
Despite the protest of Commits
sioner Myer. the AP states, the
FPHA gave in to the banking
committee and suspended its for
MGR policy of credit sales pend
ing a consideration of new legis-
lation by the committee requir-
ing cash sales. Because of this
indicated change of policy, the
FPHA, which had been ready to
begin sales to occupants in Pas
cagoula and elsewhere. ordered a
90-dav delav in the disposal pro-
cedure. while %appraisals are be
ing made and prices set for the
single and duplex dwellings.
UNLESS the banks agree to
handle the financing" of sales to
the private occupants. the dis
patch stated, quoting the FPHA
spokesman, "the housing will be
put up for sale to the highest
bidder
w. B. Herring, president of the
Pascagoula-Mos Point Bank and
chairman of the local advisory
committee on the disposal of
housing. stated Thursday that he
considered the new policy of
cash payments now being eonsid-
cred as an unfavorable one for
the occupants and prospective
buyers, as well as from the point
of view of local banking and fl
nancing interests.
Mr.. Herring said that when
questioned in the past by govern
ment officials as to the possibili-
ty of local bank credits for hous-
ing units purchases. he advised
that the units be financed under
the Federal Housing Authority,
in which the banks would adj
vance the money and the feder-
al agency would guarantee the
loan, as has been the past prac-
tire in FILA financing. In this
manner the tenant or veteran
purchaser would be given the
advantage OF a small down pay
ment and a period ranging up
to rs years to complete the pay
ment.
FILA Should Underwrite
at seems to me-" MIR. Herring
said, that the FPHA should pre-
vail on the FILA to underwrite
the purchase here. II the FILA
would assess the units at 80 per
cent of valuation the purchaser
would have to pay only 10 per
cent down. | believe that the re-
mainder of the purchase price
should be financed over long pc
fiod of years as is usual under
FILA Loan"
Local capital would not be in
a position to finance the pur.
chase of these in any other way,
he said.
IF this plan is not followed
he added, "the sale becomes a
huge mortgage risk, suitable on
lv for insurance companies, or
other large outside financial in,
terests."
Under this suggestion, a house
which was put UP for sale by
FPHA for S2500 (no actual fig
ures have yet been setl. could
be bought by occupants for a
down payment of $3.50 and
monthly payments of the re-
mainder over a 25-vear period.
In a long distance telephone
conversation with Marsh Gun
ningham, chief of disposal oper-
atoms for the FPHA at Atlanta
the Chronicle. Star was told that
the agency planned to sell the
so units in the Negro Gulfdale
project within a short time.
These. he said. under FPHA
policy would "he sold for cash
with tenants having first choice
and Negro veterans of World
War II second choice.
T.v0ns