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Spurs Building
By BILL
JORDAN
The Housing and Urban Development Act of 1963, or ‘“‘Omni-
bus’ housing law, has been referred to as a Marshall Plan for
housing.
Some title or cther of the 300-
plus page bill gets in the news
almost daily as another industry
is touched in some way, and it
has been said by those with au-
‘thority that the bill is, without
doubt, the most comprehensive
housing program in American
history.
In addition to providing hous-
( ing for low-income families, the
bill provides for some _profit-
making opportunities for real
estate men. And, as National
Real Estate Board President
Lyn E. Davis has pointed out,
there are a number of sections
designed to aid middle-income
families across the country by
éasing the stringency in the
mortgage market.
NOT BY LOBBY
Davis said last weck that
these provisions did not result
from lobbying efforts, but “from
the realization by senators and
representatives that the severe
tightening in the mortgage mar-
ket in 1966 affected more than
those who wanted to buy or sell
a house—it had a dampening ef-
and passed on to partner-build-
ers.
Under Title ITI, the act pro-
vides for FHA to insure home
improvement loans or loans to
rental projects that are already
financed with FHA mortgages.
Loans are limited to 90 per cent
of the improvements and to an
amount not to exceed the “total
mortgage limitation when added
to the mortgage balarice.
EASIER TERMS
While providing a means to
improve older areas of the na-
tion's cities, this title also will
stimulate business in the con-
struction and home improve-
ment business. Easier terms
provide an added incentive to
home owners to make improve-
“ments. The top amount on home
improvement loans has been
raised from $3,500 to $5,000.
Payoff time has been extended
to 7 years and 32 days. :
The act should result in in-
creased activity in the construc-
tion of condominium-type hous-
fect on the entire economy and
created hardships on an exten-
Sive spectrum of the economy.”
ing, as it specifies that a down
payment of only 20 per cent of
the amount of the purchase
As to profit making, the pill; Price over $20,000 is required,
opens up a whole new marke
for builders, developers, inves+
tors and brokers-as it offers an
t{ The percentage required down
of the amount under $20,000 re-
mains the sare,
opportunity for home ownership} No LIMIT
to a segment of the population
The act provides for mort-
that could never before afford to gages to be made available by
own homes.
federal savings and loan asso-
In a copyrighted article, the|/ciations for_mobile_ homes for
Institute for Business Planning
recently outlined some of the
new incentives for the private
sector,
NEW CORPORATION
Under Title IX of the act, a
new national housing corpora-
tion that is not a federal agency
+ was created. The corporation
will work with private investors
in a partnership arrangement.
The partnership will subscribe
_up to 25 per cent of initial equity
investments in the development
of low and moderate housing de-
velopments. In addition large
discounts will be obtained by the
corporation through a mass na-
tional group purchasing pool
the first time. There is no limit
as to price on these morigages.
All the incentives are too nu-
merous to mention but run all
the way from government-
backed property insurance in
high-risk areas to financing aid
for college building programs.
Lyn Davis summed it up with
this statement: ‘‘With the im-
provement in
market, the innovations created
by the 1968 Housing Act, the
many other optimistic signs, in-
creased availability and accessi-
bility of homes for Ameticans is
likely to be the most important
aspect of housing in 1969.”
finance additions to multi-family |,
of FHA’s estimate of the value|
the mortgage]
growth in the economy and the)
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