NATURE OF END PRODUCT

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 is Administrator-Continued

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

Housing costs to group served.

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

Title I: Improvement and new nonresidential
construction loans carry maximum financing
charge to borrower equivalent to about 9.6
percent per annum on outstanding balance
(inclusive of FHA insurance charges). New
residential construction loans carry maximum
financing charge equivalent to about 6.7 per-
cent per annum; average monthly debt serv-
ice payment per $1,000 borrowed is $8.36, on
basis of 15-year maximum term discount loan.
Title II: Maximum financing charge on home
loans is 41⁄2 percent per annum on outstanding
principal, plus insurance premium of 2 of 1
percent on annual reducing balances. Aver-
age monthly debt service payment, including
insurance premium, per $1,000 borrowed is
$5.81 on 25-year new home loan, which is most
common type. Total estimated monthly
housing expense, including taxes, heating,
lighting, maintenance, and repair, ranges from
about $36 on homes costing $3,500 to $96 on
homes costing $10,000. For homes costing
about $5,000 (average valuation of homes in-
sured) total estimated monthly housing ex-
pense is about $54.

Monthly rentals in projects are concentrated
in $35 to $75 range. Average is $55.

SCOPE AND STATUS OF PROGRAM

Prewar range with respect to most
families was $500 to $1,200, with almost
half of families served in $600-$900 in.
come 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 aver-
age of $12.80 a month. In South, average
shelter rental payment was $10.48, and
in North $14.73.

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.

Federal Housing Administration

Title I: On basis of claims paid ($49,000,000) less
income received ($19,000,000), total FHA lia-
bility which may be outstanding is $135,000,000
of which $74,000,000 was, as of end of 1943, allo-
cated to participating lending institutions.
Amount of insured loans outstanding is estim-
mated at $160,000,000.

Title II: Outstanding home mortgage loans in-
sured as of end of 1943 totaled $3,235,000,000
and rental project loans $101,000,000, or
$3,336,000,000 in the aggregate.

Title I: RFC has provided FHA with approx-
imately $40,000,000 for payment of title I claims
and expenses. However, since 1939, when
premium charges were instituted, operations
have approximated a self-sustaining basis.
Title II: Program is on self-sustaining basis
(including administrative expenses).

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

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. "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