Evening star., 1950-10-13
New Steps Seen
To Hold Down
Building Credit
! 14,400 Applications
| Before DeudIine Stun
Housing Officials
By Robert J. Lewis

Ndt1OA1dI w u IL OA11CldIob
stunned at the full proportions Of
last minute steps by District
builders to beat the deadline on
the Governments new housing
curbs, limited today they may take
new steps to hold down easy
credit building here.
On Wednesday. District area
builders filed financing applica-
tions for more than $4,000 hous-
ing units under the old, more
liberal rules.
A final count by the Veterans
Administration and the Federal
Housing Administration disclosed
that applications for a record
breaking total of 14,400 houses
were filed, OF which about
$500 were for 'co-operative"
houses on terms more liberal than
any financed here before.
Exceeds 1949 Total.
This total exceeds the 10000
single-family houses put under
construction in 1949 and the $4,000
so far this year.
Involved in the financing ap-
plications is Government-aided
mortgage credit estimated at about
$144 million.
Construction of single family
houses by so-called builders CO.
ops" for subsequent sale to indi-
viduals. was made possible under
the new National Housing Act.
Down payments of 10 and IS
per cent, and mortgage terms of
40 years at 4 per cent interest or
less, are provided for this housing.
No housing with such liberal
terms has ever been built in the
District area.
Filed at Two Offices.
The builders financing applica-
tions were field with the Govern
ments' two local housing Offices
the Loan Guaranty Division of the
Veterans Administration and the
Washington Regional Office of the
Federal Housing Administration.
VA revealed that builders filed
applications on Wednesday to seek
VA financing on 7,400 veterans
houses.
For its part. FILA said applica-
tions to cover about 1000 units
were filed in its Office.
The new. more stringent rules
were announced Wednesday morn
ing, to become effective at mid
night that night. This was time
enough for builders to file the bulk
Dot the applications which got under
the wire.
Smaller Profit Indicated.
The co-ops housing applications
were filed with the local FILA
Office. Under the law, FILA may
provide mortgage insurance for
such housing ranging from IS to
80 per cent of the mortgage
amount thus assuming virtually
all the risk from lending institu-
tions providing the money.
Builders would have to be satis-
fed to obtain financing on the
basis of July costs, however, ac-
cording to the law. Costs are
estimated to have risen as much
as or per cent since then. and
this would mean, perhaps, a
smaller profit for builders of CO.
op houses, it was explained.
Housing officials did not specify
how they will deal with the rec
ord-breaking flood of 14,400 f.
nancing applications. But ad-
ministrative means are available
to cut down on the number of
approvals.
Under such authority, it was
recalled, FILA some time ago
clamped down a credit prohibition
against new apartment projects.
The reason assigned was that
FILA wanted to see how units al
ready financed were being "ab-
sorbed."
Unfairness Charged.
The fact that some builders
and individuals apparently learned
IN advance about the deadline and
others did not was characterized
as extremely unfair" by Clarke
Daniel, president of the Washing
ton Home Builders Association.
1T certainly didn't give all the
builders or individuals a chance
to apply because they didn't know
about the deadline," he said.
Some builders and some indi-
viduals must have been informed
in advance about the rules. Build
ers generally were not looking for
such information, since the
majority hoped the regulations
would be such that all would be
treated alike"
He added he thought the deluge
of applications might "nullify'
the aim of the new regulations.
Centering of building operations
next year in the hands of fewer
builders, construction of many
coop houses. and increased use
OF Government-aided financing
were seen as the possible out
come of the last minute rush Of
financing applications.
40-Year Term Doubtful.
Unless deferred by administra-
tive or other action, builders
could turn out a greater number
OF houses in 1851 than were built
either in 1949 or 1850.
AS far as coop housing is con-
cerned, there was some doubt in
the minds of officials that lend
ing institutions would be willing
to provide money on 40-year
mortgages. But Is or 30-year