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term of loan may be 25 years. Maximum interest rate permitted by regulation is 41⁄2 percent per annum (statutory maximum is 5 percent on outstanding principal (exclusive of FHA'S 1⁄2 of 1 percent insurance premium). Mortgage loan is amortized by monthly installment payment plan calling for equal monthly payments of amount necessary to provide for payment of taxes, special assessments, ground rents, and hazard insurance premiums, as well as debt service. Rental project loans may not exceed $5,000,000, or 80 percent of total value, or $1,350 per room attributable to dwelling use. Maximum interest rate (exclusive of FHA's of 1 percent insurance premium) is 41⁄2 percent per annum on outstanding balance on loans of $100,000 or less and 4 percent for loans in excess of $100,000. Loans are amortized by periodic payments within such term as approved by FHA for each individual case. (Most mortgages are amortized over a 26-28 year period). FHA is given various controls over rents, charges, rate of return, and methods of operation in general.
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
Statutory maximum is $4,000 per family dwelling unit and $1,000 per room (excluding land, demolition, and nondwelling facilities)-$5,000 and $1,250, respectively, in cities of more than 500,000 population. Actually, average dwelling facilities cost has been $3,191 for cities of less than 500,000 and $3,695 for larger cities. Economy must be promoted in construction and average construction cost (excluding land, demolition, and nondwelling facilities) may not exceed average construction cost of dwellings produced by private enterprise in the locality under applicable legal building requirements and same labor standards.
Communities of all sizes in both urban and rural areas of 36 States, District of Columbia, Hawaii, and Puerto Rico. (2 additional States and Virgin Islands have former PWA housing projects transferred to FPHA.) Not more than 10 percent of Federal funds authorized may be expended within any 1 State. Families who are in the lowest income group and who cannot afford to pay enough to cause private enterprise in their locality or metropolitan area to build an adequate supply of decent, safe, and sanitary dwellings for their use. Family net income at time of admission may not exceed 5 times the rental, including utilities (6 times in case of families with 3 or more minor dependents).
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
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
Permanent program is on completely self-sustaining
basis. Government subscriptions to savings and
loan shares and FHLBank capital have proved
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
Loan and annual contributions contracts
have been entered into with over 400 local
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-
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