Evening star., 1957-04-28
Easier Housing
Finance Plan
is Proposed
Continued From First Page

Continued From First Page
displaced groups and other
factors.
Mr.. Coles certification to FILA
is expected to specify that a cer-
tain percentage Of the FILA COM
|mitments be for rehabilitation.
Ia certain number for new hous-
ing and q certain number of
minority groups.
The bugaboo in the program.
Col. Mathe said, is the lirhita-
|tion Of $4,000 or $4,000 on the
size Of the mortgages for new
homes.
One official said studies show
that this level is about the low
Jest for the cheapest subdivision
homes now being put UP in the
Washington area and that
these are miles away in the. out
lying suburbs, where land costs
Iare low. The prospect of new
housing at such prices in Wash
Iington, officials believe, is vir-
tually nil.
Faint Hope for New Housing
1t is possible. under the Sec
Ition 22l program. for its bene-
Ifits to extend to new housing
lin the suburbs. where persons
displaced from Washington i'm
|provement projects could be
housed. This. however. would re-
lquire approval from the SUBJ
urban jurisdictions. where such
concurrence is highly question:
able.
Herman Schmidt. chairman of
the Urban Renewal Committee
Iof the Metropolitan H o m e
Builders Association. agreed
that the program. as now con-
lstituted. offers little hope for
new housing.
Aside from construction costs,
he said. new District zoning
proposals discourage construc-
tion of new row houses at 'reas-
enable prices"
/ He said his group felt that
there was a great potential. u
however. for the liberal financing
terms to push the rehabilitation
of homes in rundown areas and
the sale Of homes at prices which
low-income families can afford,
Best Hope for Low Income Group
Mr.. Schmidt has carried out
several private business re-
habilitation projects in South
west and Northeast Washington.
He has organized numerous eff
forts to push such projects.
| Mr.. Schmidt said the new
program was "the best hope for
people in this low-income cate
CORY to buy without being ex-
plotted. They would have the
advantage Of FHA approval to
determine value and also assur-
ance of reasonable financing"
Several officials cited the
Mayme Riley land condemnation
case in Southwest Washington
as an example Of one kind OF
problem which Section 22I IL
designed to ease.
In that case. Mrs. Riley bought
a home for $3.50. amortized by
three long-term trusts, which a
condemnation jury found wal
worth only $1,000. That finding
has been set aside. but govern
ment officials have contendec
that the purchase price was in
i fiated by the multiple long term
credit notes.
Oficials also feel that the
prospects for rental housing
under Section 221 are "up in the
air" because Of the requirement
that it be handled by mon
profit" groups.
Farley Scheduled Tuesday
The Section 22l provision.
were first authorized by Con-
gress in 1854, but were largely
imperative until Congress lib
eralized them in the last two
years.
Throughout the country. 81
cities have been allocated 22.52a
housing units for FILA commit
ments under the section.
/ Obviously. however. they have
been Of much greater value for
the country as a whole than for
expensive urban areas like
Washington.
Last year. for example, % per
cent Of FHA's total nationwide
business involved houses costing
less than $4,000. Such prices
have little application in Wash
ington.
/ FHA and District officials are
expected to discuss the new pro-
gram at a housing displacement
conference to be held Tuesday
at the Hotel Statler by the
Washington Housing Association