HOUSING PLAN AIDS MILLIONS, SAYS MCDONALD
Housing Plan Aids Millions, Says McDonald FHA Has Reduced Housing Shortage; Director Gives Figures WASHINGTON, D. C—What the Federal Housing administration set up by the Roosevelt administration...
...It is estimated that nearly 50 per cent of all small eligibb single family houses are being financed through the FHA plan During 1939 approximately 500 new single family homes were started each working day under FHA inspection...
...Director Gives Figures WASHINGTON, D. C—What the Federal Housing administration set up by the Roosevelt administration has accomplished in the way of reducing the housing shortage and in making it possible for families of small means to acquire homes of their own is shown by a summary of recent statements made by Stewart McDonald, administrator of that agency...
...The number of single family homes built during 1939 exceeded the 1929 figure...
...Roosevelt at its 1939 convention, voted unanimously last week that the guild should re-examine its attitude at the 1940 convention...
...Well over $3,000,000,000 has been advanced by private lenders—banks, mortgage companies, savings and loan a.ssociations...
...This number represented about half of all mortgages on new homes insured by the FHA during the year...
...On 14 of these which were sold the average loss was only $222...
...Through the FHA, the federal government for the first time in history has established an unbiased agency to which the average citizen ignorant of tne pitfalls and dangers of home buying, may turn for a measure of protection never before available to him and nowhere else available now...
...Out of 150,000 insured mortgage loans of this kind only 40 small home properties had to be acquired under foreclosures by lending institutions...
...In fact, it is estimated that the FHA should pay all its operating expenses and add at least $10,000,000 to its reserve funds now totaling $30,000,000...
...An interesting feature of the operations of the FHA is in connection with loans made at high valuations, that is, loans which exceed 80 per cent of property valuations...
...Currently this figure has been stepped up to more than 600 homes per working day...
...The year 1939 produced the largest volume of residential construction since 1929, approximating 467,000 non-farm dwelling uniis...
...At the bottom of the depression only about 50,000 non-farm dwelling units were constructed annually...
...According to these, nearly 12,000.-000 people are enjoying improved housing conditions under the Federal Housing administration program...
...Largely through the constant emphasis placed by the FHA on...
...Sees Sprplus The FHA is now self-supporting and should have a substantial surplus during the next fiscal year...
...Interest Rates Down Money for home financing is obtainable today at the lowest interest rates and on the best terms ever before available in the history of the country...
...the need for low cost housing, private industry is today producing well designed and constructed homes within the means of families with incomes of $900 to $1,500...
...This does not include the thousands of workers in the construction industry, the manufacturers and distributors of building materials and equipment, and those connected with financial institutions profiting by the activity stimulated by the FHA...
...In 1939, over 70.000 new hemes constructed and financed under the FHA plan call for payments of less than $25 a month to cover all mortgage charges including gradual reduction of principal...
...Guild's 3rd Term Stand on Agenda NEW YORK CITY—The International executive board of hte American Newspaper Guild (CIO* which recommended a third term for Pres...
...and insurance companies, etc.—to finance the FHA program...
Vol. 10 • May 1940 • No. 19
