The National Housing Agency-A descriptive analysis of the basic permanent housing functions being administered by its 3 constituent units under the general direction and supervision of its Administrator-Continued

Federal Public Housing Authority (admin-
isters functions formerly in United States
Housing Authority)

Housing costs to group The average interest rate on outstanding mortgage loans of participating member associations was 5.72 percent in 1942.

served.

Prewar range with respect to most families was $500 to $1,200, with almost half of familles served in $600-$900 income group. In South average income was $710, and in North $936. Average prewar shelter rentals ranged from $5 to $20 per dwelling unit, with an average of $12.80 a month. In South, average shelter rental payment was $10.48, and in North $14.73.

535

The National Housing Agency-A descriptive analysis of the basic permanent housing functions being administered by its 3 constituent units under the general direction and supervision of its Administrator-- Continued

SCOPE AND STATUS OF PROGRAM-Continued

Federal Home Loan Bank Administration (adminis-
ters functions formerly in Federal Home Loan Bank
Board (FHLBB); Home Owners' Loan Corpora-
tion (HOLC); and Federal Savings and Loan Insur-
ance Corporation (FSLIC))

1. Treasury has invested $124.741,000 of $125,000,000
authorized in FHLBank stock. In 1941, this stock
was transferred to RFC. Whole amount is still
outstanding.

2. Of Treasury and HOLC authorizations to sub-
scribe to savings and loan shares, only $76,000,000 of
the $300,000,000 HOLC authorization has not yet
been utilized. Of the $49,300,000 Treasury and
$224,000.000 HOLC share subscriptions made, all
but about $51.000.000 have been retired.
3. Entire $100.000,000 HOLC subscription to FSLIC
capital still outstanding. FSLIC has disposed of
the bonds constituting the subscription in the open
market.

Permanent program is on completely self-sustaining
basis. Government subscriptions to savings and
loan shares and FHLBank capital have proved
earning assets.

Title I: Approximately 3,300 institutions are par-
ticipating. 54 percent of aggregate amount of
loans insured since mid-1939 have been made
by commercial banks, 38 percent by finance
companies, 3 percent by industrial banks, and
5 percent by others.

Title II: Approximately 8,200 institutions have financed, and 9,000 now hold, insured home

Federal Public Housing Authority (admin-
isters functions formerly in United States
Housing Authority)

1. Substantially entire loan and annual
contribution authorizations are under
contract.

2. FPHA has taken up and holds about
$294,000,000 in local authority series B
bonds.

Annual contributions actually paid repre-
sent cost of program to Federal Govern
ment. These have averaged about 30
percent lower than maximum annual
contributions contracted for. Total
amount paid in each of fiscal years 1942
and 1943 was less than $10,000,000.
(FPHA administrative expenses are paid
out of interest profit on loans made to
local authorities.)

Loan and annual contributions contracts
have been entered into with over 400 local
housing authorities.

1. HOLC: HOLC has issued its own (Government-
guaranteed) bonds to obtain funds to make its
$224,000,000 subscription to savings and loan shares.
FSLIC has sold in open market the $100,000,000 in
HOLC bonds issued as HOLC's subscription to
FSLIC's capital stock.

2. FHLBanks: In addition to the $124,741,000 Govern-
ment-capital subscription, FHLBanks have ob-
tained $57,577,050 in capital subscriptions from their
members. Borrowings from general financing com-
munity (through issuance of consolidated deben-
tures) have totaled $493,500,000, of which $64,300,000
is outstanding. FHLBank advances to members
have totaled $1,130,000,000, of which $110,000,000 is
outstanding. (Amount outstanding at any one
time has generally been below $200,000,000.)

mortgages. (Aggregate assets total over $70,-
000,000,000). Approximately 48 percent of
financing done has been by 5,500 commercial
banks; 21 percent by 320 mortgage companies;
11 percent by 330 insurance companies; 10 per-
cent by 1,800 savings and loan associations; 4
percent by 200 savings banks; and 6 percent by
others. Mortgage companies sell practically
all loans they finance; insurance companies, in
contrast, hold 29 percent of insured mortgages
outstanding as compared with 11 percent
financed by them.

65 institutions hold insured mortgages on
rental projects. Two-thirds (in amount) are
held by about 25 insurance companies. Other
active institutions are commercial and savings
banks.

Title I: The great bulk of the 42 million title I
loans have been for improvement purposes:
for heating, painting, roofing, and additions
and alterations (in the order named). Only
$100,000,000 in amount, involving 39,000 dwell-
ings, have been for new residential consturc-
tion.

Title II: On basis of prewar figures, FHA's in-
surance activities have come to cover about 30
percent of annual total of new homes con-
structed in the country and over 20 percent of
the total home mortgage financing. Home
loans involving construction of 742,000 new
dwelling units and purchase of 400,000 have
been insured. Mortgages on 356 rental proj-
ects providing 38,400 dwelling units have also
been insured.

Title I: FHA has insured over 4,438,000 loans
totaling $1,778,000,000 of which $100,000,000 was
for new residential construction.
Title II: FHA has insured grand total of $4,519,-
000,000 in home mortgage and $146,000,000 in
rental project loans..

$18,500,000 in debentures have been issued
to meet claims on insured home loans and
$15,500,000 on rental project loans. $10,500,000
and $1,600,000, respectively, of these deben-
tures have been retired. These debentures
were issued in exchange for 4,025 1- to 4-family
properties and 18 rental projects. 3,978 of the
1- to 4-family properties were sold as of end of
1943 with net charges to the appropriate in-
surance fund of $2,361,300 at date of sale.

338 projects operated as low rent housing
(105,532 dwelling units).

182 projects suspended for duration (25,513
dwelling units).

47 war converted low rent projects (11,577
dwelling units).

200 projects being operated for duration
under war housing statute P. 671 (50,888
dwelling units).

50 former PWA projects transferred to
FPHA (21,607 dwelling units).

Total: 817 projects with 215,117 dwelling
units.

1. "Temporary financing": Financing com-
munity has taken up total of $1,700,000,-
000 in local housing authority temporary
loan notes of which $222,000,000 is out-
standing.

2. "Permanent financing": Local housing
authorities have issued $446,000,000 in
their long-term bonds (exclusive of re-
funded obligations), of which $152,000,000
has been sold as series A bonds to the
general financing community, and $294,-
000,000 as series B bonds to FPHA.
3. FPHA itself has issued $226,000,000 in
its obligations to the general financing
community which obligations have all
been retired. All necessary borrowings