Mod ernization Loans on Many Structures Under NFIA Can Now be Made up to $sO,O00

Washington, D. C., June l8.-Regulations governing the extension of modernization credit by financial institutions for improvement of properties under the $50,000 provision of the amended National Housing Act "open a new market which should be of direct benefit to practically all industry and of indirect benefit to the nation as a whole," according to Acting Federal Housing Administrator Stewart McDonald.

The entire building industry is vitally interested in these recently adopted regulations, and an understanding of their provisions is necessary to a complete cooperation with the better housing program.

The maximum limit of the amount of credit obtainable for the improvement or modernization of individual homes and other classes of property mentioned in the original act remains fixed at $2,000. This type of 'credit is being provided for the purposes of making additions, alterations, repairs and improvements of real property, including also such new construction as garages and certain other similar structures,

Particularly pertinent and worthy of the closest study is that portion of the new regulations concerning the class of modernization credit made possible by the $50,000 amendment. This type of credit is extended for additions, alterations, repairs and improvement for "real property improved by or to be converted into apartment or multiple family houses, hotels, office, business or other commercial buildings, hospitals, orphanages, colleges, schools, or manufacturing or industrial plants." The maximum limit of credit obtainable for each separate prope{ty is $50,00O.

The cost of architectural and engineering services is eligible for modernization credit as is also the purchase and installation of machinery and equipment in the types of property mentioned in the preceding paragraph under the new regulations provided they are "peculiarly adapted to the business conducted therein or necessary to the operation thereof ."

Determination of the credit risk involved is left largely to the discretion of the financial institution advancing the