FHA Aids in Financing 93,000 Homes in Southern Cali fornia --Celebrates Birthday 8th

Southern California Federal Housing Administration had its 8th birthday on the ITth ol 'August. A most active, vital role has been performed by FHA, both through peacetime and wartime conditions throughout Southern California, according to W. G. Bingham, Southern California district director.

"Since August 17, 1934, when the FHA began operations here, over 93,000 home have been built or purchased through the proceeds of FHA-insured loans," Mr. Bingham said, "under Titles II and VI."

"ft is true that, during the past year, the program has been primarily one of emergency, war activity, and, therefore, in restricted areas where war effort was greatest and the housing need most imperative. However, during the early years of the program," Mr. Bingham continued, "the FHA plan of loan insurance played a large part in the reopening of the private capital market of home financing which resulted in the stimulation of a sharp revival in new home construction as well as assisting in the production of a large volume of needed repairs to old properties which had, up to that time, been deferred because of the preceding depression years.

"Since early in l94l the need of more housing in War Production areas became the outstanding program for private builders and mortgagees alike operating under the FHA program.

"Since the advent of this type of housing, mortgage insurance has been issued on 19,392 new homes which have been constructed, in this district, almost all of which have been located in war industry areas supplying the critical housing needs at the most economic cost.

"During the wartime conditions, FHA has concentrated on programs of :

(1) The insuring of war housing loans, under Title VI, rvhich involves new projects in designated critical areas.

(2) Insuring of Title I loans which provide, through repairs or additions, more living accommodations for war workers in war areas.

(3) Insuring of mortgage loans on existing dwellings, under Title II, which primarily are referred to as "Refinanc- ing loans" developed, either by the tqansfer of ownership of property, or the refunding of debt,'where the existing mortgage represented either too heavy a burden in interest rates, or too short a period of loan.

"During the eight years of operations in Southern California, the FHA has insured home mortgages, totaling $382,367,274, under Titles II and VI, on 93,020 homes. In addition, property owners have repaired or improved their properties with the proceeds of loans available for insurance under Title I. ,

"In addition, under the rental housing program, under Sec.2O7, of Title II, mortgage insurance in the amount of $6,356,700 has been issued by the FHA on eleven projects which provided 2,000 family units.

"fn retrospect, these data show some of the effects of the vital. role played by the FHA in residential financing for Southern California.

"Because of the recent regulations issued by the National Housing Agency, relative to the building of new homes in the Los Angeles area, no applications for preference ratings for new construction are now being accepted. This ruling does not affect activities under Title I, which provide for repairs, rehabilitation or remodeling for the purpose of making additional living accommodations in existing properties.

"Throughout Southern California several thousands of applications for this type of insured loan have recently been made, and in view of the recent ruling restricting new construction, it can be expected that this activity will represent a major portion of building operations for the immediate future. A similar observation can be made in relation to activities covering the transfer of titles of existing properties. Realty circles have stated that activities in existing homes have already shown an increase.

"FHA Title II, refinancing loans, continue to be available and play a major part in effecting transfers of existing properties, since FHA insurance of these loans is available, both for the refinancing or consolidating of existing mortgages, as well as the financing of necessary improvements or rehabilitation."