Evening star., 1948-10-12

creating q total OF 1O8,960 rental
units. These units were built with
the aid of FHA-insured mortgages
totaling $846, 100000.
Prior to the Veterans Emergency
Housing Program, under section
sos, total of 495 war housing prof.
ects were completed, comprising ST.
924 living units. They were con-
structed with the aid of insured
mortgages totaling $l66, 6,95S,000.
Under FHAs old sections .207
and 2l0 rental program, 326 rental
housing projects, composed of 40,-
988 living units, with mortgages
amounting to sl55,377, 900, were con-
structed.
Provisions Enlarged.
The second session of the 80th
Congress considerably enlarged the
provisions Of the National Housing
Act as they relate to rental housing.
The insurance authorization un-
der title 6 was increased by a total
Of 100000, 900.
OF this authorization $400, 900 900
was made Immediately available,
with an additional 400,000,O00 to
be made available with the approval
Of the President.
Except for projects constructed
under the provisions Of sections 600
and GIL, the entire $500, 900 600 is
available for the insurance of mort
cages on rental housing projects,
since section 603 of title 8, provid-
ing for mortgage insurance on one
to-four family units was not ex-
tended.
The principal changes in rental
housing insurance under sos pro-
vided by the new legislation are,
first, the mortgage may not exceed
80 per cent of the commissioners
estimated replacement cost of the
property. based on costs prevailing
on December 81, 1947, or present
costs, whichever is the lesser, and
second, the 81 500 to 81 800 per room
mortgage limitation has been
changed to provide that the maxi
mum mortgage may not exceed 81, 100
multiplied by the number of family
units.
In addition to these two changes,
the mortgagor must certify under
oath that in the selection of tenants
there will be no discrimination by
reason Of the fact that there are
children in the family and that he
will not sell the property while the
mortgage insurance Is in effect un-
less the purchaser also so certifies.
Types Of Mortgage Loans.
Section 207 of title of the act
was substantially expanded and now
provides for several types of mort
gage loans relating to rental housing
projects. The maximum amount of
an insurable mortgage remains at
IS 5,000,0 900, except in one case which
will be described later. A brief de-
scription Of these types follows:
When a public housing project is
to be constructed and the mortgagor
corporation Is formed under and
restricted by Federal or State law,
the mortgage may be as much as
$50, 600, 900 and may not exceed 80
per cent of the estimated value Of
the project.
Such part Of the mortgage as may
be attributable to dwelling use shall
not exceed $500 times the number
of dwelling units.
A mortgage on q project to be
constructed in locality or metro
politan area where the FILA COM
missioner may determine there is
need for new dwellings 1hr families
Of lower income may be Us much as
IS, 900 900 and not in excess OF 90
per cent Of the estimated value of
the project. Such mortgages shall
not exceed 5000 multiplied by the
number of dwelling units.
N0nprofit Co-0peratives.
A nonprofit cooperative owner
ship housing corporation may obtain
mortgage which is limited to 80
per cent of the commissioners esti-
mated value of the property when
completed, provided such part of the
mortgage as may be attributable to
dwelling use may not exceed $500
multiplied by the number Of dwelling
units, or 81 300 per room If the COM
missioner finds that the needs Of
the members of such corporation are
more adequately met by per room