President Outlines Program to Stimulate Home Building and Mod ernization in Message to Congress

President Roosevelt in a message to Congress on May l4 proposed Government insurance of private financing for home construction and repair. The President urged action at this session of Congress. The purpose of the program is two-fold: first, to return many of the unemployed to useful and gainful occupation; second, to produce tangible, useful wealth in a form for which there is great social and economic need. The program consists of four major, inter-related divisions: (1) modernization, repair and new construction; (2) mortgage insurance; (3) mortgage associations, and (4) building and loan insurance.

The text of the President's message fo'llows:

To the Congress:

May I draw your attention to some important suggestions for legislation which should tend to improve conditions for those who live in houses, those who repair and construct houses, and those who invest in houses?

Many of our homes are in decadent condition and not fit for human habitation. They need repairing and modernizing to bring them up to the standard of the times. Many new homes now are needed to replace those not worth repairing.

The protection of the health and safety of the people demands that this renovizing and building be done speedily. The federal g'overnment should take the initiative immediately to cooperate with private capital and industry in this real-property conservation. We must l.y the groundwork for this effort before congress adjourns its present session.

The purpose of the pro,gram is two-fold: First, to return many of the unemployed to useful and gainful occupation; second, to produce tangible, useful wealth in a form for which there is great social and economic need.

The program consists of four major inter-related divisions:

1. Modernization, repair and new construction.

2. Mortgage insurance.

3. Mortgage associations.

4. Building and loan insurance.

The modernization phase of the program will furnish national guidance and support for locally-managed renovizing campaigns throughout the country and protection for home owners against unwarranted cost advances. For thise purposes and to assure adequate financing at low cost and on moderate terms of repayment a new g'overnmental agency is required.

Modernization of commercial, and industrial structures is envisioned, as well as residential, but the new features providing governmental assistance are confined largely to home improvements.

Loans to individuals will be made by private agencles which will be insured by a governmental agency against loss up to a certain percentage of their advances. This insurance against loss on the rehabilitation loans will be met by the government and will be confined to advances of credit that meet standards and conditions designed to protect both the home owners and the cooperating agencies.

To make funds available for new home construction and to improve the mortgage market, the second phase of the program is long-term mortgage financing. It provides mutual mortgage insurance under governmental direction to enable private agencies to make first mortgage loans on newly constructed houses up to 80 per cent of the appraised value of the propertl, and to make new mortgages on existing homes up to 6O per cent of the appraised value of the property.

The loans will usually carry not more than 5 per cent interest and will be amortized by periodic payments over 20 years. Similar insurance arrangements are provided to help finance low-cost residential projects of the slum-replacement type.

The third phase provides for the incorporation of mortgage associations under strict federal supervision to increase the amount of mortgage funds available in regions where interest rates are unduly high because sufficient local funds are lacking. The activities of these associations will be limited almost entirely to insured residential mortgages.

Insurance for share and certificate holders in building and loan associations, similar to the insurance provided for bank depositors, is the fourth phase of the program' These institutions are custodians of the funds of small savers, and it is esential that they should be given every reasonable protection. Insurance of this type is necessary in order to arrest any further drain on these institutions and to put them in a position to resume their normal useful functions.

I betieve that the initiation of this broad and sound program will do much to alleviate distress and to raise perceptibly the standards of good living for many of our families throughout the land.

Appoint So, Calif. Representative

J. C. McCloskey has been appointed Southern California sales representative of Harbor Plywood Co., Hoquiam, Wash., with office at 168 La Brea, Los Angeles. He will work under the supervision of Charles W. Buckner, San Francisco, who will make frequent trips to Los Angeles. Mr. McCloskey is a building engineer, and was formerly with the National Thrift Co. for some years, and recently with the Pacific Ready Cut House Corporation'

Port's Progress Told bv Speaker

There was an excellent attendance at the May meeting of East Bay Hoo Hoo Club held Monday evening, May 21, at the Athens Athletic Club, Oakland.

President C. I. Gilbert, who has a 100 per cent personal attendance record, presided, and made a report on the success of the second annual Reveille, held April 2O. This meeting broke all attendance figures for lumbermen's gatherings in recent years.

Entertainment chairman Sewall Morton introduced the speaker of the evening, Ralph T. Fisher, chairman o{ the Oakland Port Commission. All the members of the Commission were guests of the club.

Mr. Fisher in his talk gave the latest news of Port of Oakland developments, and at the conclusion answered many questions about the progress of the San FranciscoOakland Bay Bridge. His talk was illustrated by motion pictures shown by Hal Wiltermood, advertising representative for the Port of Oakland.

Music was again provided by a trio of young ladies.

It seemed to be the consensus that this was one of the most interesting meetings of the year.

Earle E. Johnson, of Livermore, past president of the club, invited all the members and their friends to attend the Livermore Rodeo, to be held Tune 9 and 10.

Dee Essley is Toastmaster

Dee Essley, secretary of Retail Lumber & Building Material Code Authority (Northern California), San Francisco, presided at the semi-monthly dinner meeting of the Northern California Council of Trade Association Executives, held in San Francisco, May 7.

This organization representing 175 associations is made up of trade association and Code Authority executives. It was formed last November for the purpose of self education and discussion of problems common to all Code Authorities and associations. It is sponsored by the San Francisco Chamber of Commerce. The membership holds a dinner meeting on the first and third Monday of each month, and their live executive committee, a body of nine outstanding men, meets at noon on the second and fourth Monday of the month.